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Kinross Gold's income falls on weak gold prices

The Associated Press

NEWS: Kinross Gold Corp. reported Wednesday that its third-quarter net income plunged more than 80 percent on lower gold prices and a number of charges. But the quarter's adjusted results came in ahead of market expectations.

DETAILS: The company's total production increased slightly but the amount of gold sold fell. Its average realized gold price dropped 19 percent year-over-year.

NUMBERS: Kinross said that it earned $41.9 million, or 4 cents per share, for the quarter versus $224.9 million, or 20 cents per share, last year. After adjusting for impairment charges, severance expenses and other special items, it earned 5 cents per share versus 22 cents per share last year. Revenue fell 21 percent to $876.3 million.

Analysts polled by FactSet were anticipating earnings of 3 cents per share on revenue of $758.6 million.

FUTURE: The company increased its production guidance to 2.6 million to 2.65 million gold equivalent ounces from 2.4 to 2.6 million.

STOCK: U.S.-traded shares of the Canadian company increased 14 cents, or almost 3 percent, to $5.12 in extended trading following the report. Its shares added 8 cents to close regular trading at $4.98 Wednesday.