Kinross profit takes Bema hit

Reuters

February 18, 2009 at 4:57 PM EST

TORONTO — — Kinross Gold Corp. [K-T]said Wednesday it fell to a steep loss in the fourth quarter as it took a $1-billion (U.S.) charge to write down its 2007 acquisition of Bema Gold Corp.

Canada's No. 3 gold producer lost $968.8-million, or $1.47 a share, in the quarter ended Dec. 31. That compared with a profit of $173.1-million (Canadian), or 29 cents a share, in the year-before period.

Stripping out the writedown, which Kinross warned of in January, as well as other small items, the company earned 9 cents a share.

The result slightly beat expectations of a profit of 10 cents a share, before items, as polled by Thomson Reuters.

Kinross Gold

Gold equivalent production rose 43 per cent to 550,221 ounces, while costs per ounces retreated 11 per cent to $375 (U.S.).

Revenue climbed 72 per cent to $484.4-million. Realized gold prices were virtually flat at $794 an ounce, compared with $796.