Kinross Gold (TSX: T.K, Stock Forum), after Tuesday’s close, reported a first-quarter profit of $105.7 million, or nine cents a share, down from $250.1 million, or 22 cents a share, during the same period last year. Excluding one-time items, the company reported a profit of $203.1 million, or 18 cents a share.
The Thomson Reuters consensus analyst estimate was for earnings of 20 cents a share. Kinross attributed the decrease in earnings in the large part to an increase in the Ghanaian corporate income tax rate from 25% to 35%.
"Our operations continue to generate robust revenue, cash flow and earnings. While production was lower and costs were higher than Q4 2011, based on our annual plan, production for each of the remaining quarters of 2012 is expected to exceed Q1. We expect to be within our previously-stated full-year guidance for production and costs," said Kinross President and CEO Tye Burt.
The gold miner’s Q1 output fell to 611,838 gold equivalent ounces from 700,479 ounces, while costs per ounce were 36% higher. Revenue rose 11% to $1 billion as the company enjoyed higher realized gold prices.
Kinross added that it expects to produce approximately 2.6-2.8 million gold equivalent ounces in 2012, with production cost of sales per gold equivalent ounce in the range of $670-715.