If you've ever paid the food bill that feeds a growing teen, then you know that growth requires substantial investment.
Kinross reported adjusted net earnings of $55.8 million for the second quarter, for a 17% increase over the 2007 period. Revenue was up even as production declined thanks to a 39% increase in Kinross' margin per ounce ($437, for the curious).
Oil prices, currency conversions, and growing pains caused production costs to rise 34%, from $348 per ounce a year earlier to $466 per ounce. Kinross raised 2008 cost guidance to about $435 per ounce, but it looks to the ramp-up of three new projects to provide some relief in 2009.
Fools take note: When using cost metrics to compare gold mining companies, take care to ensure costs are calculated the same way. The $466 reported by Kinross and the $440 reported by Newmont Mining
For the Fool willing to see this miner through some growing pains, I believe Kinross has been eating its spinach.