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Kinross Gold's (KGC) Earnings & Sales Beat Estimates in Q1
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Kinross Gold Corporation (KGC - Free Report) reported a first-quarter 2023 profit of $90.2 million or 7 cents per share compared with $81.3 million or 6 cents in the year-ago quarter. Earnings per share beat the Zacks Consensus Estimate of 5 cents.
Revenues increased roughly 33% year over year to $929.3 million. It surpassed the Zacks Consensus Estimate of $856.2 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Attributable gold equivalent ounces produced in the reported quarter totaled 466,022 ounces, up 23% year over year. The upside was mainly due to higher production at Paracatu, Round Mountain, Fort Knox and La Coipa.
Average realized gold prices were $1,894 per ounce in the quarter, up around 1% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $987, up from $972 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 7.3% year over year to $1,321.
The margin per gold equivalent ounce sold was $907 in the quarter, in line with the prior quarter’s level of $904.
Financial Review
Adjusted operating cash flow increased 43.8% year over year in the first quarter to $358.2 million.
Cash and cash equivalents were $471 million as of Mar 31, 2023, compared with $418.1 million as of Dec 31, 2023. Long-term debt was $2,158.9 million at the end of the quarter, down 15.6% from $2,556.9 million as of Dec 31, 2022.
Outlook
For 2023, Kinross expects to produce 2.1 million (+/- 5%) gold equivalent ounces. Production is forecast to increase following the first quarter, primarily driven by expected higher production at Tasiast and La Coipa. Kinross’ annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2 million gold equivalent ounces (+/- 5%), respectively.
Price Performance
Shares of Kinross have soared 31.3% in the past year compared with a 16.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KGC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space include Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report) .
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 29.7% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 11.9% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 4.8% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 21.8% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 17.7% for the current year. Shares of PPG have gained 11.4% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.
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Kinross Gold's (KGC) Earnings & Sales Beat Estimates in Q1
Kinross Gold Corporation (KGC - Free Report) reported a first-quarter 2023 profit of $90.2 million or 7 cents per share compared with $81.3 million or 6 cents in the year-ago quarter. Earnings per share beat the Zacks Consensus Estimate of 5 cents.
Revenues increased roughly 33% year over year to $929.3 million. It surpassed the Zacks Consensus Estimate of $856.2 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 466,022 ounces, up 23% year over year. The upside was mainly due to higher production at Paracatu, Round Mountain, Fort Knox and La Coipa.
Average realized gold prices were $1,894 per ounce in the quarter, up around 1% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $987, up from $972 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 7.3% year over year to $1,321.
The margin per gold equivalent ounce sold was $907 in the quarter, in line with the prior quarter’s level of $904.
Financial Review
Adjusted operating cash flow increased 43.8% year over year in the first quarter to $358.2 million.
Cash and cash equivalents were $471 million as of Mar 31, 2023, compared with $418.1 million as of Dec 31, 2023. Long-term debt was $2,158.9 million at the end of the quarter, down 15.6% from $2,556.9 million as of Dec 31, 2022.
Outlook
For 2023, Kinross expects to produce 2.1 million (+/- 5%) gold equivalent ounces. Production is forecast to increase following the first quarter, primarily driven by expected higher production at Tasiast and La Coipa. Kinross’ annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2 million gold equivalent ounces (+/- 5%), respectively.
Price Performance
Shares of Kinross have soared 31.3% in the past year compared with a 16.8% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
KGC currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the Basic Materials space include Steel Dynamics, Inc. (STLD - Free Report) , Linde plc (LIN - Free Report) and PPG Industries, Inc. (PPG - Free Report) .
Steel Dynamics currently carries a Zacks Rank #2 (Buy). Shares of STLD have gained 29.7% in the past year. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 10.7% on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Linde, currently carrying a Zacks Rank #2, has a projected earnings growth rate of 11.9% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 4.8% upward in the past 60 days. It has a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 21.8% over the past year.
PPG Industries currently carries a Zacks Rank #2 and has a projected earnings growth rate of 17.7% for the current year. Shares of PPG have gained 11.4% in the past year. It delivered a trailing four-quarter earnings surprise of 6.8% on average.