Kinross Gold Corporation (KGC - Free Report) logged a profit of $82.3 million or 6 cents per share in first-quarter 2022 compared with $76.2 million or 6 cents reported in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 8 cents.
Revenues remained flat year over year at $768 million.
Operational Performance
Attributable gold equivalent ounces produced in the reported quarter totaled 409,857 ounces, down 6.1% year over year. The downside was mainly due to lower production at Round Mountain and Paracatu, which more than offset higher production at Tasiast.
Average realized gold prices were $1,875 per ounce in the quarter, up 4.9% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $1,003, up from $803 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 18.4% year over year to $1,245.
Margin per gold equivalent ounce sold was $872 in the quarter, down from the prior quarter’s level of $984.
Financial Review
Adjusted operating cash flow declined 12.7% year over year in the first quarter to $261 million. Cash and cash equivalents were $454.2 million as of Mar 31, 2022, compared with $531.5 million as of Dec 31, 2021.
Long-term debt was $2,688.8 million at the end of the quarter, up 69.1% from $1,589.9 million as of Dec 31, 2021.
Outlook
For 2022, Kinross expects to produce 2.15 million (+/- 5%) gold equivalent ounces. It expects a production cost of sales of $830 per gold equivalent ounce.
All-in sustaining cost per ounce for 2022 is projected at $1,150. Capital expenditures are predicted at around $850 million (+/- 5%) for this year, down from $1,050 million as expected earlier.
In 2023 and 2024, the company expects capital expenditures to be $750 million.
Price Performance
Shares of Kinross have declined 37.6% in the past year compared with a 12.8% fall of the industry.
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien has a projected earnings growth rate of 157.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.6% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 57.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 20.5%. ASIX has surged 51.2% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 17.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 1.7% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 7.4% over a year.
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Kinross Gold Corporation (KGC - Free Report) logged a profit of $82.3 million or 6 cents per share in first-quarter 2022 compared with $76.2 million or 6 cents reported in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 8 cents.
Revenues remained flat year over year at $768 million.
Operational Performance
Attributable gold equivalent ounces produced in the reported quarter totaled 409,857 ounces, down 6.1% year over year. The downside was mainly due to lower production at Round Mountain and Paracatu, which more than offset higher production at Tasiast.
Average realized gold prices were $1,875 per ounce in the quarter, up 4.9% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $1,003, up from $803 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 18.4% year over year to $1,245.
Margin per gold equivalent ounce sold was $872 in the quarter, down from the prior quarter’s level of $984.
Financial Review
Adjusted operating cash flow declined 12.7% year over year in the first quarter to $261 million. Cash and cash equivalents were $454.2 million as of Mar 31, 2022, compared with $531.5 million as of Dec 31, 2021.
Long-term debt was $2,688.8 million at the end of the quarter, up 69.1% from $1,589.9 million as of Dec 31, 2021.
Outlook
For 2022, Kinross expects to produce 2.15 million (+/- 5%) gold equivalent ounces. It expects a production cost of sales of $830 per gold equivalent ounce.
All-in sustaining cost per ounce for 2022 is projected at $1,150. Capital expenditures are predicted at around $850 million (+/- 5%) for this year, down from $1,050 million as expected earlier.
In 2023 and 2024, the company expects capital expenditures to be $750 million.
Price Performance
Shares of Kinross have declined 37.6% in the past year compared with a 12.8% fall of the industry.
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nutrien Ltd. (NTR - Free Report) , AdvanSix Inc. (ASIX - Free Report) and Cabot Corporation (CBT - Free Report) .
Nutrien has a projected earnings growth rate of 157.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 36.6% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 57.4% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 20.5%. ASIX has surged 51.2% in a year. The company flaunts a Zacks Rank #1.
Cabot, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 17.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 1.7% upward in the past 60 days.
Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 7.4% over a year.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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