November 2, 2009 / 11:38 PM / 8 years ago

UPDATE 1-Kinross Gold falls to loss on higher costs

* Adj EPS $0.00/shr, vs est $0.11/shr

* Production slips 2.6 pct to 537,440 ounces

* Cost per ounce rises 14 pct to $464/oz (In U.S. dollars unless noted)

TORONTO, Nov 2 (Reuters) - Kinross Gold (K.TO) said on Monday it slipped to a loss in the third quarter, as higher costs associated with a mine expansion offset the positive impact of soaring gold prices.

The Canadian gold miner lost $21.5 million, or 3 cents a share, in the quarter ended Sept. 30. That compared with a profit of C$64.7 million, or 10 cents a share, in the year-before period.

On an adjusted basis, the company earned nil per share, it said.

Analysts polled by Thomson Reuters I/B/E/S had expected, on average, a profit of 11 cents a share.

Revenue rose 15.6 percent to $582.3 million, as realized gold prices climbed to $956 per ounce from $857. Production slipped 2.6 percent to 537,440 ounces.

Cash costs per ounce, meanwhile, climbed to $464 from $406, hurt by production problems at its expanded Paracatu mine in Brazil.

“While revenue and cash flow before changes in working capital were higher than the previous year, we are disappointed by other aspects of our results for the third quarter,” Kinross Chief Executive Tye Burt said in a statement.

Last week, Toronto-based Kinross, which owns mines spread through the United States, South America and Russia, cut its 2009 production outlook and raised its cost guidance due to the Paracatu issues.

Separately, Canadian junior Jaguar Mining (JAG.TO) said on Monday it had bought Kinross’s Gurupi gold project in Brazil for $39 million in stock. The property has gold resources of 1.6 million ounces.

$1=$1.08 Canadian Reporting by Cameron French; editing by Rob Wilson

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