* Kinross Q2 EPS $0.15 vs $0.03 a year-ago
* Kinross Q2 adjusted EPS $0.16 vs $0.12 a year-ago
* Yamana Q2 EPS $0.12 vs $0.01 a year-ago (Wraps Kinross, Yamana results; All figures in U.S. dollars, unless noted)
By Euan Rocha
Results mirror rival North American gold miners that have recorded huge profits this quarter, driven by the large year-over-year jump in the price of bullion. [ID:nN28234234]
Gold, which rose to a record of more than $1,260 an ounce in June, averaged nearly $1,200 in the quarter — up about 8 percent from the previous quarter and nearly 30 percent above year-earlier levels.
Kinross on Wednesday reported a stronger second-quarter profit as record gold prices more than offset higher costs and a slight decrease in output.
Separately, Yamana’s quarterly net profit was higher than a year-ago, when results were hurt by losses related to foreign currency translation.
Kinross, which agreed earlier this week to buy Red Back Mining Inc RBI.TO for about $7 billion, said net income was $103.8 million, or 15 cents a share, up from a year-ago profit of $19.3 million, or 3 cents a share, when results were hurt by a foreign exchange-related loss.
Excluding items, the company said earnings rose to $113.1 million, or 16 cents a share, from $84.3 million, or 12 cents a share, a year earlier.
Quarterly revenue rose 16.5 percent to $696.6 million, as its average realized gold price in the quarter increased 27 percent to $1,158 an ounce.
Kinross said on Monday it will buy the 91 percent of Red Back Mining that it did not already own, in a bid to build its presence in West Africa. Kinross already owns mines and projects in Canada, the United States, Brazil, Chile, Ecuador and Russia. [ID:nN02108994]
Kinross said its second quarter gold production fell 4 percent to 538,270 ounces, due to lower than expected production at its operations in Chile and lower grades at its Kupol mine in Russia.
The company said it expects to meets its 2010 production forecast of 2.2 million ounces, with costs being at the high end of its $460 to $490 per ounce range.
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Toronto-based Yamana reported a second-quarter profit of $90.8 million, or 12 cents a share, compared with a year-ago profit of $9.6 million, or 1 cent a share.
The company’s operating earnings rose to $100.5 million, from $71 million, a year earlier.
Excluding items, earnings were $85.8 million, or 12 cents a share, slightly short of the consensus view of 15 cents a share, according to Thomson Reuters I/B/E/S.
Raymond James analyst Brad Humphrey said that the earnings miss was largely due to a shift in shipment patterns, as the company has begun to transport some its its concentrate by rail, instead of by road.
“It’s a build-up of inventory that is a one-time thing really,” said Humphrey.
Yamana, which has operations spread across Latin America, said its quarterly revenue rose 30 percent to $351.4 million, as its average realized gold price rose to $1,201 per ounce, from $922 per ounce, a year earlier.
The company also raised its dividend to 8 cents a share on an annualized basis, from its current level of 6 cents a share. (Reporting by Euan Rocha; Editing by Bernard Orr)