* Q2 adj EPS $0.20 vs $0.16 yr ago; Wall St view $0.17
* Q2 revenue up 42 pct, as production, bullion prices rise
* Co boosts semi-annual dividend payout by 1 cent a share
* Shares rise 3 pct after earnings report (Adds details on results, background; figures in U.S. dollars)
By Euan Rocha
TORONTO, Aug 10 (Reuters) - Kinross Gold (K.TO) more than doubled its quarterly profit and raised its dividend payout on Wednesday, as surging bullion prices and acquisition-related production growth helped boost results.
Toronto-based Kinross also reiterated its 2011 production outlook and said it expects average production costs to come in at the lower end of a previously forecast range. The company said it is facing capital cost pressures, like the rest of the industry.
Kinross, which owns mines in Europe, Africa and the Americas, is expanding its Tasiast mine in Mauritania. The company is also developing assets in Chile, Ecuador, Canada and Russia.
The company said recent drill results from Tasiast point to significant new opportunities beyond those already included in the initial project scoping study. Kinross said it is extending its Tasiast feasibility study to analyze and incorporate this new drill data, and is analyzing options to reduce capital costs at the site.
The feasibility study extension will not impact Tasiast’s development schedule, with construction expected to commence mid-2012 and production start-up targeted for early 2014, the company said.
“Our drilling campaign at Tasiast is yielding exciting results which not only increase our confidence in the resource, but suggest significant new opportunities and potential project expansions which warrant further study,” Chief Executive Tye Burt said in a statement.
Kinross also said it remains on track to produce between 2.6 million and 2.7 million ounces in 2011, with costs at the lower end of its $565 to $610 per ounce range.
The gold miner said its net income in the quarter ended June 30 rose to $247.4 million, or 22 cents a share — up from a year-ago profit of $110.4 million, or 16 cents a share.
Excluding one-time items, earnings rose to $226.5 million, or 20 cents a share, from $111.4 million, or 16 cents a share. Analysts, on average, had forecast earnings of 17 cents a share, according to Thomson Reuters I/B/E/S.
Gold production in the quarter rose nearly 26 percent to 676,245 ounces, while revenue rose 42 percent to $987.8 million.
Kinross said its attributable margin per ounce sold was $873 in the quarter, up from $664 a year earlier.
The company raised its semi-annual dividend payout by 1 cent to 6 cents a share.
Shares of Kinross rose 49 cents to $16.75 a share in trade after the closing bell in the United States. ($1= $0.99 Canadian) (Reporting by Euan Rocha; editing by Gunna Dickson, Gary Hill)