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Kinross' (KGC) Q3 Earnings Beat Estimates, Revenues Up Y/Y

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Kinross Gold Corporation (KGC - Free Report) logged profits of $240.7 million or 19 cents per share in third-quarter 2020, up from $60.9 million or 5 cents reported in the year-ago quarter. Barring one-time items, adjusted earnings came in at 25 cents per share that beat the Zacks Consensus Estimate of 21 cents.

Revenues rose 29% year over year to $1,131.3 million, partly supported by higher average realized gold prices.

Kinross Gold Corporation Price, Consensus and EPS Surprise

Kinross Gold Corporation Price, Consensus and EPS Surprise

Kinross Gold Corporation price-consensus-eps-surprise-chart | Kinross Gold Corporation Quote

Operational Performance

Attributable gold equivalent ounces produced in the reported quarter totaled 603,312 ounces, down 0.8% year over year. The downside was mainly due to lower production at Paracatu, Maricunga and Kupol, which was largely offset by increases at Bald Mountain and Fort Knox.

Average realized gold prices were $1,908 per ounce in the quarter, up 30% from the year-ago quarter figure.

Production cost of sales per gold equivalent ounce was $737 in the quarter compared with $735 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold fell 6.8% year over year to $958.

Margin per gold equivalent ounce sold was $1,171 in the quarter, up 60% year over year.

Financial Review

Adjusted operating cash flow jumped 86% year over year in the third quarter to $549.6 million. Cash and cash equivalents were $933.5 million as of Sep 30, up 160.8% year over year.

Long-term debt was $1,423.1 million at the end of the reported quarter, down 22.5% year over year.  

Outlook

For 2020, Kinross expects to produce around 2.4 million gold equivalent ounces at production cost of sales of $720 per gold equivalent ounce.

All-in sustaining cost per ounce for 2020 is projected at $970 and capital expenditure target for this year is $900 million.

Price Performance

Shares of Kinross have rallied 68.6% in the past year compared with the industry’s 47.5% growth.

Zacks Rank & Key Picks

Kinross currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited (AEM - Free Report) , Barrick Gold Corporation (GOLD - Free Report) and B2Gold Corp (BTG - Free Report) . While Agnico Eagle sports a Zacks Rank #1 (Strong Buy), Barrick and B2Gold carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle has an expected earnings growth rate of 100% for 2020. Its shares have returned 34.1% in the past year.

Barrick has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 62.9% in the past year.

B2Gold has an expected earnings growth rate of 250% for 2020. The company’s shares have gained 77.1% in the past year.

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