The Toronto-based miners produced 724,510 gold equivalent ounces from continuing operations in the fourth quarter of 2012, a 16 percent increase over 622,507 ounces produced during the same period of 2011. Kinross said this boost is mainly due to production increases at Fort Knox in Alaska and La Coipa in Chile.

Full-year production was 2,617,813 gold equivalent ounces, exceeding the company’s guidance of 2.5-2.6 million gold equivalent ounces, and a 3 percent increase over full-year 2011. The full-year increase was primarily due to stronger production at Fort Knox.

Fort Knox produced 119,582 ounces of gold in the fourth quarter and 359,948 ounces for the full-year 2012.

Revenue from metal sales was US$1.19 billion in the fourth quarter of 2012, compared to US$919.8 million during the same period of 2011. Kinross said this 29 percent increase is primarily attributable to higher realized gold prices. Full-year revenue was US$4.31 billion, up 12 percent from the $3.84 billion for 2011.

Production cost of sales was US$686 per gold-equivalent ounce during the final three months of 2012, compared with US$635 during the fourth quarter 2011. Full-year production cost of sales per gold equivalent ounce was US$706, in line with the Kinross’ guidance of US$690-US$725, compared with US$592 cost of sales in 2011. The increase was primarily a result of higher input costs for labor, energy, and consumables and the increase in the processing of lower grade ore.

Kinross’ margin per gold-equivalent ounce sold was US$1,021 for the fourth quarter of 2012, compared with US$963 per gold-equivalent ounce during the same period of 2011. Kinross said the increased margin is primarily attributable to the company’s higher average realized gold price. Full-year margin per gold-equivalent ounce sold was US$937 compared with US$908 for 2011.

“As promised, we remained strongly focused on operational fundamentals in the second half of 2012, and finished the year by exceeding our full-year production guidance, and meeting our full-year cost of sales guidance,” said Kinross CEO J. Paul Rollinson.

Kinross’ adjusted net earnings for the fourth quarter was US$276.5 million (US24 cents per share), a 47 percent increase over the US$187.2 million (US16 per share) during the same period of 2011. Full-year adjusted net earnings were US$879.2 million (US77 cents per share) compared with US$850.8 million (US75 cents per share) for 2011.

Kinross recorded an after-tax non-cash impairment charge of US$3.21 billion, comprised of US$3.1 billion for Tasiast project in Mauritania, Africa and US$111.3 million for Chirano gold mine in Ghana.

The impairment charge at Tasiast included a charge of US$2.13 billion related to goodwill and an after-tax charge of US$964.5 million related to property, plant and equipment. The impairment test for Tasiast was based on a 30,000-metric-ton-per-day mill model, compared with the 60,000-metric-ton-per-day model used for the 2011 annual impairment test. The resulting non-cash charge was due to a number of factors, including a reduction in the valuation multiple for Tasiast, and industry-wide increases in capital and operating costs. The impairment charge at Chirano was related entirely to goodwill.

This impairment resulted in a reported net loss of US$3 billion (US$2.62 per share) during the fourth quarter of 2012 compared with a net loss of US$2.79 billion (US$2.45 per share) for the same period 2011. Full-year reported net loss was US$2.55 billion million (US$2.24 per share) compared with a net loss of US$2.09 billion (US$1.84 per share) for 2011.

“While we recorded a non-cash impairment charge related to our Tasiast project, our pre-feasibility study work and recent exploration results continue to increase our confidence in Tasiast’s potential, and confirm its importance as part of our long-term future,” explains Rollinson

Kinross’ proven and probable mineral reserve estimates at year-end 2012 were 59.6 million ounces of gold, compared with 62.6 million ounces of gold at year-end 2011, both estimated using a US$1,200 per ounce gold price. Measured and indicated mineral resource estimates at year-end were 20.3 million ounces of gold, compared with 25.4 million ounces of gold at year-end 2011, both estimated using a US$1,400 per ounce gold price.

“Our planning and outlook for 2013 reflects our continued focus on cost control, margin improvement and free cash flow. Although our 2013 operating costs are expected to increase due to higher consumable costs and anticipated lower grades, we are pursuing every opportunity for cost reduction. We are also forecasting a reduction in capital expenditures of approximately US$325 million over 2012,” Rollinson said. “Our pursuit of margin and quality ounces is also reflected in our strategic decision to use conservative gold price assumptions in our mineral reserve and resource estimates, which resulted in a lower mineral resource estimate, but which targets higher margin ounces with less capital intensity.”