At long last Kinross Gold (K-TO) has reported its financial results — and the market didn’t like what it saw.
Despite gold’s strong performance on Thursday, Kinross dropped roughly 5% or 55, in Toronto. It closed at $10.95 on just over 13 million shares traded.
For the nine months ending on Sept. 30, 2005 Kinross — North America’s third largest gold producer — posted a net loss of $61.7 million, or 18 per share.
Over the same period for 2004, it posted a $24.9 million or a 7 per share profit.
The delay — Kinross had not filed financial results since the third quarter of 2004 — was due to U.S regulators looking into Kinross’ accounting. Specifically, accounting associated with its purchases of TVX Gold and Echo Bay Resources.
Kinross blamed its losses over the nine months on two major items: a non-cash foreign currency impact on future tax liabilities totaling $22.9 million and a $36.8 million write-down of the Aquarius property.
Kinross, however, is positive about its prospects for 2006. It plans to produce 1.44 million oz. of gold for the year with cash costs between $285 and $295 an oz.
In 2005 Kinross turned out 1.6 million oz. with cash costs of about $275 to $280 an oz.
In a statement issued by the company on Wednesday, Jan. 15, chief executive Tye Burte said: “We’re now in a position to fully capitalize on a historic point in the gold market and for our companywe have turned the page on merger accounting matters and resolved the questions related to the 2003 acquisitions.”