Kinross Gold Corp. (NYSE: KGC) reported a 64% jump in the company’s third-quarter profit as a result of stronger gold prices and higher production following the opening of the company’s low-cost Kupol mine in Russia.
The Canadian company, which recently took over Aurelian Resources to gain control of its Fruta del Norte gold deposit in Ecuador, earned $64.7 million, or 10 cents a share, in the quarter ended Sept 30, 2008. That was up from $39.4 million, or 7 cents a share, in the year-before period.
The company’s gold-equivalent production rose 47% to 551,550 ounces, helped by 206,495 ounces from Kupol, which is operating ahead of schedule. The company owns 75% of the mine.
Kupol is one of three new operations opening this year. They are expected to boost the company’s output and lower its overall costs.
The others are the Buckhorn mine in Washington state and the Paracatu expansion in Brazil, both of which began operating in October, the company said.
Costs per ounce rose to $406 in the quarter from a year before $383, while realized gold prices were $857 an ounce, up from $686.
Kinross said it was on track for overall 2008 production of 1.8 million to 1.9 million ounces, at cash costs in a range of $425 to $445 per ounce, while 2009 output is seen in a range of 2.4 million to 2.5 million ounces.
Shares of KGC, which are down 18% so far this year, rose 6 cents to $12.90 today.