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Kinross' (KGC) Earnings Miss Estimates, Revenues Flat in Q1

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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.

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 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 Investment Research
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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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