Boston, MA 02/13/2014 (wallstreetpr) – Gold has lost its luster and companies like Kinross Gold Corporation (USA) (NYSE:KGC) are feeling the heat. Kinross reported a disappointing fourth quarter and full year financial results mainly on account of lower bullion prices. The net loss for the last quarter was $740 million translating to $0.65 per share. Higher costs and impairment charges were also principal contributors. The loss included impairment charge of $544.8 million arising from its Maricunga operations. Revenues for the quarter were $877 million as compared to $1.19 billion for the same period last year. Average price realization came to $1,268 per ounce against $1,707 for the same period last year.
Alcoa Inc (NYSE:AA) completed the expansion of its Davenport facility at a cost of $300 million. This was required as the automotive industry saw the best year in 2013 after several disappointing years. North America saw sustained demand for vehicles and the trend is expected to continue. However, businesses in commodity segments like aluminum are yet to recover their full strength. Alcoa Inc (NYSE:AA) still has some structural weaknesses that it needs to correct before it can come out of the woods. The global recession appears to be slowing and several critical sectors are growing and even profitability is rising. The timely completion of the Davenport Facility will ensure that Alcoa can take advantage till the good times last.
Arch Coal Inc (NYSE:ACI)’s proposed terminal in Washington may face another set of environmental review. The terminal, called Millennium Bulk Terminals was to be built exclusively for handling coal and would have exported billions of dollar worth of coal to power hungry Asia. It is expected to cost $650 million to build. But environmentalists are worried about the environmental damages it can cause, both with the U.S. as well as in Asia. The coal would need to be shipped by rail across the Rockies. Arch Coal Inc (NYSE:ACI) is building the terminal along with Ambre Energy Ltd.
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