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Kinross Gold posts Q4 net loss of US$740M; revenue falls to US$877M

The Canadian Press

TORONTO - Kinross Gold Corp. (TSX:K) has reported another big fourth-quarter and full-year net loss as the gold miner face lower bullion prices and higher costs as well as heavy impairment charges.

The Toronto-based miner says its net loss for the three months ended Dec. 31 was US$740 million or 65 cents per share.

The loss included an after-tax non-cash impairment charge of US$544.8 million, primarily comprised of property, plant and equipment at Maricunga.

Still, that was an improvement over the year-earlier period when Kinross posted a net loss of just under US$2.99 billion or $2.62 per share.

Quarterly revenue fell to US$877.1 million from $1.19 billion as the average realized gold price fell to US$1,268 per ounce from US$1,707 in the year-earlier period and both production and sales slumped.

The adjusted net loss was US$25.1 million or two cents per share, compared with adjusted earnings of $280.5 million or 25 cents per share in the comparable 2012 period.

Production from continuing operations also fell to 646,234 gold equivalent ounces, mainly due to the suspension of mining at La Coipa and scheduled maintenance at several other sites.

However, full-year production was a record 2,631,092 attributable ounces, exceeding original guidance and within the company's updated guidance issued in November.

Full-year revenue dropped to US$3.78 billion from $4,31 billion, while the reported net loss was $3.01 billion or $2.64 per share, compared with a net loss of $2.54 billion or $2.24 per share in 2012. The full-year loss included an after-tax non-cash impairment charge of $2.29 billion.