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Kinross (TSX: K, NYSE: KGC) reported on Tuesday that net earnings almost doubled to $122.7 million, or $0.10 per share, for Q1 2020, compared with net earnings of $64.7 million, or $0.05 per share, in Q1 2019.

The Toronto-based gold miner said the increase was mainly due to higher margins, which outpaced the increase in average realized gold price, and lowered other operating expenses.

Kinross produced 567,327 attributable Au eq. oz. in Q1 2020, compared with 606,031 Au eq. oz. in Q1 2019.

The decrease was mainly due to lower production at Paracatu mine in Brazil, Kupol mine in Russia and Chirano in Ghana, and the end of production at Maricunga in Chile, partially offset by higher production at Fort Knox in Alaska. 

Revenue from metal sales increased to $879.8 million, compared with $786.2 million during the same period in 2019.

Paracatu, Kupol and Tasiast delivered 62% of total production and achieved an average cost of sales of $642 per Au eq. oz., with average costs lower than the previous quarter.

Tasiast mine in Mauritania, for the second consecutive quarter, achieved record quarterly production and a record average throughput rate of 16,100 tonnes per day. On Tuesday, workers at Tasiast downed tools.

During the first quarter, all Kinross mines remained in operation and were not materially impacted by covid-19. However, the company withdrew its full-year 2020 guidance as a precautionary measure.

“The company generated strong free cash flow and increased earnings year-over-year, ending the quarter with excellent liquidity, low net debt, and with investment-grade credit ratings from all three major rating agencies,” said J. Paul Rollinson, president and CEO in a media release.

“During the quarter, our margins increased by 33%, outpacing the 21% increase in average realized gold price.”

Kinross’ stock was up 2.1% on the NYSE on Tuesday. The company has a $8.7 billion market capitalization