(Reuters) - Canada’s Kinross Gold Corp YRI.TO 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