Kinross second-quarter profit falls on lower output, higher costs

Wed Aug 8, 2012 5:34pm EDT
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(Reuters) - Canada's Kinross Gold Corp (YRI.TO: Quote) said on Wednesday its second quarter profit fell 53 percent as lower production and higher costs outweighed a slight increase in precious metal prices.

The gold miner also said it would move ahead with a prefeasibility study for a 30,000 metric ton a day expandable mill at its Tasiast mine in Mauritania, a lower cost and lower risk option than an expansion to 60,000 metric tons a day.

Kinross said net earnings from continuing operations fell to $115.8 million, or 10 cents per share, in the quarter ended June 30. That compared with $244.3 million, or 22 cents per share, in the year-ago period.

Adjusted to remove one-time items, earnings were $156 million, or 14 cents a share, compared with $222.6 million, or 20 cents a share, in the year-earlier period.

Analysts, on average, had expected earnings of 17 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose nearly 5 percent to $1 billion.

(Reporting by Julie Gordon; editing by Andre Grenon)