Home » BLOG » Gold miner Kinross Gold Corp reports big quarterly loss but offers solid 2016 guidance

Gold miner Kinross Gold Corp reports big quarterly loss but offers solid 2016 guidance

For 2016, Kinross said it expects to produce a record 2.7 million to 2.9 million ounces at an all-in sustaining cost of US$890 to US$990 an ounce. Capital expenditure is forecast at approximately US$595 million.

Kinross Gold Corp. reported an enormous fourth quarter loss on Wednesday due to writedowns, however the company beat its production and price guidance and offered up a good outlook for 2016.

Toronto-based Kinross was the very first senior Canadian gold miner to report earnings this quarter, and also the results set a comparatively upbeat tone for the rest of the sector. Gold equities, including Kinross, have performed very well so far in 2016 amid a rally in prices. However the rally is fragile at best, and may easily stall if earnings disappoint the marketplace.

Overall, Kinross reported an internet loss of US$841.9 million within the fourth quarter, or US73 cents a share, because it recorded writedowns which were largely due to lower assumed gold prices. Once those were stripped out, the numbers were inside a penny of consensus analyst estimates.

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