November 3, 2010 / 9:44 PM / 7 years ago

UPDATE 3-Kinross posts profit on strong gold price

* Q3 EPS $0.44 vs loss $0.03/shr year earlier

* Revenue rises 29 percent to $735.5 mln

* Average realized gold price up 24 pct

* Raises production forecast for full year (In U.S. dollars unless noted)

TORONTO, Nov 3 (Reuters) - Miner Kinross Gold (K.TO) reported a quarterly profit on Wednesday on the back of big gains in the price of bullion, and raised its 2010 production forecast.

For 2010, it now sees total production of 2.30 million to 2.35 million gold equivalent ounces, up from its prior forecast of 2.2 million.

In September, shareholders of Kinross approved the $7 billion acquisition of West Africa-focused Red Back, a deal that is set to transform Kinross from an intermediate player into one of the world’s top five gold miners by output.

Red Back’s Chirano mine in Ghana and its Tasiast mine in Mauritania also give Kinross a foothold in Africa, allowing it expand outside North America, South America and Russia.

Kinross said total capital expenditures for all its operations are expected to be $630 million.

Net income in the quarter rose to $346.9 million, or 44 cents a share. That compared with a year-ago loss of $21.5 million, or 3 cents a share.

Excluding the sale of shares in Harry Winston HW.TO, its interest in the Diavik diamond mine and other one-time items, Kinross earned $123.6 million, or 16 cents a share.

Quarterly revenue rose 29 percent to $735.5 million, as its average realized gold price in the quarter climbed 24 percent to $1,190 an ounce sold.

Production in the third quarter was up 7 percent at 575,065 gold equivalent ounces, which included 20,238 ounces from the former Red Back Mining assets in West Africa. (Reporting by Bhaswati Mukhopadhyay; editing by Rob Wilson)

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