Dahlman Rose Gives Color On KGC, ANV Earnings

Kinross Gold KGC reported EPS was $0.45, in-line with the consensus estimate. On and adjusted basis net earnings was $121.6MM or $0.17/sh vs. consensus of $0.15/sh. Production for the quarter was 575,065 ounces of gold a 7% y/y increase driven by improved performance at the Paracatu expansion plant and the addition of new production from the heap leach at Fort Knox. Average realized gold price was $1,190 per ounce, and cost of sale was $508 per ounce. Adjusted cash flow from operations was $258.7MM for the quarter and cash and cash equivalents stood at $1,380.8MM at the end of the quarter. Total Capex for 2010 is expected to be $630MM. Allied Nevada ANV reported 3Q10 EPS of $0.03 vs. consensus estimate of $0.14 and noted that gold sales are expected to exceed managements guidance of 100,000 ounces in 2010. Its cost of sales is expected to be between $400-$450 per ounce in 2010. Capital and mine development expenditures are projected to be $51MM for the full year and the exploration spending to be $28MM. Cash provided by operating activities was $11.5MM for 3Q10 and with a cash balance of $347.8MM the company is funded for its near term capex spending. KGC is trading higher at $18.48 ANV is trading higher at $26.35