August 4, 2010 / 9:02 PM / in 7 years

UPDATE 1-Kinross profit lifted by gold price

* Q2 EPS $0.15 vs $0.03 a yr-ago

* Q2 adjusted EPS $0.16 vs $0.12 a yr-ago

* Qtrly revenue up 16.5 pct at $696.6 mln (In U.S. dollars)

TORONTO, Aug 4 (Reuters) - Kinross Gold (K.TO) said on Wednesday it posted a stronger second-quarter profit as record gold prices more than offset the impact of higher costs and a slight decrease in output.

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 climbed 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.

$1=$1.02 Canadian Reporting by Euan Rocha; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below