Kinross Gold Corp. (TSX:K,NYSE:KGC) announced yesterday its results for the fourth quarter of 2013 as well as 2013 as a whole. The company said that its full-year production came to 2,631,092 gold equivalent ounces, within its increased guidance and slightly higher than the 2,617,813 gold equivalent ounces it put out in 2012.
However, Kinross recorded a Q4 net loss of $740 million, or $0.65 per share; that includes an after-tax non-impairment charge of $544.8 million “primarily comprised of property, plant and equipment at Maricunga.”
J. Paul Rollinson, Kinross’ CEO, commented:
Part of our ‘quality over quantity’ strategy in 2013 included a rigorous mine plan optimization program, which applied a fully-loaded costing methodology to all of our operating sites in preparing our year-end mineral reserves estimates. The result is a reduction in proven and probable mineral reserves, primarily at Paracatu, but an increase in the value of our reserves, with higher grades and greater near-term cash flow expected at operations across the Company.
We are forecasting another solid year of production in 2014, with Dvoinoye, our new low cost, high-grade mine, coming fully on-stream. Our focus on cost control is expected to further reduce our all-in sustaining cost. Capital expenditures, which were $140 million below our revised guidance in 2013, are expected to be further reduced by more than $585 million this year.