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Kinross' (KGC) Earnings Top, Revenues Lag Estimates in Q4
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Kinross Gold Corporation (KGC - Free Report) logged a net loss of $2.7 million per share in fourth-quarter 2021 against a profit of $783.3 million or 62 cents reported in the year-ago quarter.
Barring one-time items, adjusted earnings came in at 8 cents per share that topped the Zacks Consensus Estimate of 6 cents.
Revenues declined 26.4% year over year to $879.5 million. The top line missed the Zacks Consensus Estimate of $917.1 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Attributable gold equivalent ounces produced in the reported quarter totaled 487,621 ounces, down 21.9% year over year. The downside was mainly due to lower production at Tasiast and Round Mountain.
Average realized gold prices were $1,797 per ounce in the quarter, down 4.2% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $864 in the quarter, up from $682 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 29.5% year over year to $1,312.
Margin per gold equivalent ounce sold was $929 in the quarter, down from the prior-year quarter’s level of $1,190.
FY21 Results
Earnings (as reported) for full-year 2021 were 17 cents per share compared with earnings of $1.06 per share a year ago. Net sales declined 11.5% year over year to around $3,729.4 million.
Financial Review
Adjusted operating cash flow declined 32.5% year over year in the fourth quarter to $356 million. Cash and cash equivalents were $531.5 million as of Dec 31 compared with $1,210.9 million as of Dec 31, 2020.
Long-term debt was $1,589.9 million at the end of the year, up 11.6% from $1424.2 million as of Dec 31, 2020.
Outlook
For 2022, Kinross expects to produce 2.65 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 $1,130. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
In 2023 and 2024, the company expects capital expenditures to be $1 billion, in-line with 2022 levels.
Price Performance
Shares of Kinross have declined 12.6% in the past year compared with a 1.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 56.2% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 8.9% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rankstocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 73.9% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.2% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 35.2% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 55.6% over a year. The company carries a Zacks Rank #2 (Buy).
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Kinross' (KGC) Earnings Top, Revenues Lag Estimates in Q4
Kinross Gold Corporation (KGC - Free Report) logged a net loss of $2.7 million per share in fourth-quarter 2021 against a profit of $783.3 million or 62 cents reported in the year-ago quarter.
Barring one-time items, adjusted earnings came in at 8 cents per share that topped the Zacks Consensus Estimate of 6 cents.
Revenues declined 26.4% year over year to $879.5 million. The top line missed the Zacks Consensus Estimate of $917.1 million.
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 487,621 ounces, down 21.9% year over year. The downside was mainly due to lower production at Tasiast and Round Mountain.
Average realized gold prices were $1,797 per ounce in the quarter, down 4.2% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $864 in the quarter, up from $682 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 29.5% year over year to $1,312.
Margin per gold equivalent ounce sold was $929 in the quarter, down from the prior-year quarter’s level of $1,190.
FY21 Results
Earnings (as reported) for full-year 2021 were 17 cents per share compared with earnings of $1.06 per share a year ago. Net sales declined 11.5% year over year to around $3,729.4 million.
Financial Review
Adjusted operating cash flow declined 32.5% year over year in the fourth quarter to $356 million. Cash and cash equivalents were $531.5 million as of Dec 31 compared with $1,210.9 million as of Dec 31, 2020.
Long-term debt was $1,589.9 million at the end of the year, up 11.6% from $1424.2 million as of Dec 31, 2020.
Outlook
For 2022, Kinross expects to produce 2.65 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 $1,130. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
In 2023 and 2024, the company expects capital expenditures to be $1 billion, in-line with 2022 levels.
Price Performance
Shares of Kinross have declined 12.6% in the past year compared with a 1.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Nutrien Ltd. (NTR - Free Report) and AdvanSix Inc. (ASIX - Free Report) .
Albemarle, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 56.2% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 8.9% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rankstocks here.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB has rallied around 73.9% over a year.
Nutrien, sporting a Zacks Rank #1, has a projected earnings growth rate of 55.8% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 13.2% upward in the past 60 days.
Nutrien beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 73.5%, on average. NTR has rallied around 35.2% in a year.
AdvanSix has a projected earnings growth rate of 7.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 5.3% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has surged 55.6% over a year. The company carries a Zacks Rank #2 (Buy).