UPDATE 4-Canada's Kinross Gold makes more cost cuts as earnings fall

Wed Nov 13, 2013 9:44pm EST
 
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* Canadian gold miner cutting more jobs

* Has been hit by tumbling gold price

* But slightly increases 2013 gold output target

Nov 13 (Reuters) - Kinross Gold Corp said on Wednesday it is making further cuts to its employee numbers and capital spending as the Toronto-based gold miner reported a steep drop in third-quarter earnings, hurt by weaker gold prices.

The company, one of the world's 10 biggest gold producers, said it had identified around $20 million in expected annual cash savings, primarily from laying off workers.

Kinross and other gold miners have promised to slash costs as they grapple with tumbling profits caused by a steep decline in the gold price over the past year, as well as soaring mine development costs. Gold prices, trading at $1,272 on Wednesday, have fallen 24 percent this year.

Kinross is chopping around 1,000 jobs overall this year, many of them as part of already announced cost-cutting initiatives, said company spokesman Steve Mitchell. Most of the job cuts have already been implemented.

Kinross, which employs around 9,000 people, last month said it was cutting 300 jobs in Spain and Africa's Mauritania.

To save money, Kinross will merge its North and South American regions into a new Americas region, close its Reno, Nevada office and "downsize" its administrative offices in Chile and Brazil.   Continued...