Kinross Gold Corp (K.TO) (KGC.N) said on Wednesday it plans to spend $460 million this year boosting production by 32 percent to as much as 2.5 million ounces.
Kinross also said it would record a goodwill impairment charge of $900 million to $1.2 billion for year-end 2008, related mostly to its acquisition of Bema in 2007. It had previously said it was assessing such a charge.
The company said 2008 production will be in line with its target range of 1.8 million to 1.9 million gold equivalent ounces at a cost of sale of $425 to $445 an ounce.
Costs in 2009 are expected to fall to $390-$420 an ounce, it said.
Kinross went against industry trends (in 2008) by growing our production and cash flow while our costs decreased over the year, Chief Executive Tye Burt said in a statement.
In 2009, we will continue to execute on our strategic plan to grow cash flow and continually improve our portfolio of assets.
The nearly one-third increase in production this year will be the result of new mine projects at Paracatu in Brazil, Kupol in Russia and Buckhorn in Washington state, Burt said.
Kinross shares closed down C$1.48, or 7 percent, at C$20.28 on the Toronto Stock Exchange. That is about flat with the price of one year ago.
($1=$1.20 Canadian) (Reporting by Jeffrey Jones; editing by Rob Wilson)
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