Kinross Gold Corp.booked a net loss of US$13.9 million, or 1 cent per share, in the first quarterof the year, sinking further into the red compared to the same period of 2015, whenthe Canadian producer reported a net loss of US$6.7 million, or 1 cent per share.
The dual-listed major attributed the increased loss to a loweraverage realized gold price, which fell to US$1,179 per ounce during the quarter,from US$1,218 per ounce a year earlier, according to the May 10 earnings report.
As a result, Kinross' attributable profit margin was down toUS$485 per gold equivalent ounce sold in the first three months of the year, fromUS$509 per gold equivalent ounce sold in the first quarter of 2015.
This is despite first-quarter production climbing year over yearto 687,463 attributable gold equivalent ounces, from 629,360 gold equivalent ounces,and attributable gold sold rising to 659,397 equivalent ounces from 634,565 equivalentounces.
First-quarter revenues were up slightly at US$782.6 million,from US$781.4 million in the year-ago period.
Kinross said the higher revenue was largely due to the increasein gold equivalent ounces sold, offset by the lower average realized gold price.
Adjusted operating cash flow, however, slipped year over yearto US$202.6 million from US$214.8 million.
All-in sustaining costs for the first quarter remained roughlythe same as the prior corresponding quarter at US$963 per gold equivalent ouncesold.
CapEx, however, declined to US$139.5 million, compared to US$149.5million, primarily due to lower spending at the Fort Knox gold mine in Alaska.
Kinross expects to meet its 2016 gold production guidance ofbetween 2.7 million equivalent ounces and 2.9 million equivalent ounces at all-insustaining costs of between US$890 per equivalent ounce and US$990 per equivalentounce.
However, the company has increased its expected CapEx requirementsfor 2016 to US$755 million, to reflect the additional US$160 million forecast neededfor the phase one expansionof the Tasiast minein Mauritania.
The expansion is expected to nearly double production and reducethe production cost of sales per ounce by half at the project.