Kinross Gold Corporation was established in 1993 and has since grown to become the third largest primary gold producer in North America by reserves. Based in Canada, with nine mines in stable countries including the United States, Brazil, Chile and Russia, Kinross employs more than 5,000 people worldwide
Kinross Gold invests $600 million in Red Back Mining
By Dorothy Kosich, Mineweb.com
Kinross Gold Tuesday said it had made a private placement of 24 million common shares of Red Back Mining for a 9.4% interest in the West Africa gold miner. The aggregate total purchase price is Cdn$600 million (US$584.5mn) at a price of C$25 per common share.
Red Back currently operates the Tasiast Gold Mine in Mauritania and the Chirano Gold Mine in Ghana. The company expects to mine 485,000 to 525,000 ounces of gold this year.
Meanwhile, Kinross has reported a 38% increase in adjusted net earnings, as well as a 23% increase in metals sales for the first quarter of this year.
The Toronto-based gold miner expects to produce 2.2 million GEO this year and reported 544,134 ounces of gold equivalent production during the first quarter, a 3% increase over a year ago.
A total of 592,464 GEO were produced during the first three months of this year, up slightly from 591,169 GEO a year ago. Kinross reported 571,622 ounces of gold (up 6% from 1Q09) and 3,087,000 ounces of silver (down 17% from 1Q09) were sold during the first quarter
Kinross has also increased its 2010 capex estimate by $40 million to $590 million, along with increasing its planned exploration budget from $79 million to $97 million, primarily reflecting forecast 2010 exploration expenses at the White Gold project.
Metals sales were reported at $657.6 million during the first quarter of the year, a 23% increase over the $532.7 million reported during the first quarter of 2009. Production for the first-quarter 2009 includes production increases at Fort Knox, Paracatu and Kettle River-Buckthorn. These production increases were offset by lower production at Kupol due to lower grades, which are consistent with the mine plan, and lower production in Chile.
Net earnings for the first quarter of 2010 were $110.6 million or 16-cents per share compared with net earnings of $76.5 million or 11-cents per share for the first-quarter 2009. The sale of one-half of Kinross's interest in the Cerro Casale project impacted first-quarter 2010 net earnings, along with lower interest expenses due primarily to lower debt.
Adjusted net earnings were $97.4 million or 14-cents per share during the first quarter of the year, a 38% increase from the adjusted net earnings of $70.7 million or 10-cents/sh.