Thursday, August 5, 2010

Gold Prices Help Kinross Gold (NYSE:KGC) Exceed Expectations

Kinross Gold's (NYSE:KGC) (TSE:K) earnings were up over 33 percent, driven by higher gold prices, even as production was down and costs increased. Nothing helps margins better than higher prices.

Earnings increased to $113.1 million, or 16 cent a share, growing from $84.3 million, or 12 cents a share last year in the same quarter.

Revenue climbed to $696.6 million, a 16.5 percent gain. The average gold price in the second quarter increased from $915 an ounce to 1,158 an ounce.

Sales costs for a gold-equivalent ounce rose to $496, a 14 percent increase.

Kinross CEO Tye Burt said the company should reach their goal of 2.2 million gold-equivalent ounces in 2010.

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