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Kinross Gold Corporation (KGC - Free Report) delivered net earnings of $60.9 million or 5 cents per share in third-quarter 2019 against loss of $104.4 million or 8 cents in the year-ago quarter.
Barring one-time items, adjusted earnings were 8 cents per share, meeting the Zacks Consensus Estimate.
Revenues rose 16.3% year over year to $877.1 million on higher average realized gold prices.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Attributable gold production and sales were 608,033 and 592,689 ounces, up 3.7% and down 4.2% year over year, respectively.
Production cost of sales per gold equivalent ounce fell 5.4% year over year to $735 in the quarter. All-in sustaining cost per gold equivalent ounce sold declined 2% year over year to $1,028.
Margin per gold equivalent ounce sold was $732 in the third quarter, up 69.4% year over year.
Average realized gold prices amounted to $1,467 per ounce, up from $1,209 in the year-ago quarter.
Financial Review
Adjusted operating cash flow jumped 100.7% year over year in the third quarter to $295.4 million, supported by higher margins. Cash and cash equivalents were $358 million, down 23.8% year over year.
Long-term debt amounted to $1,836.8 million at the end of the third quarter. Notably, the company has no scheduled debt maturities due until September 2021.
Capital expenditure declined 3.9% year over year to $265.5 million in the third quarter.
Outlook
Kinross stated that it is on track to attain the production target of 2.5 million (+/- 5%) gold equivalent ounces for 2019. All-in sustaining costs are expected to be $995 (+/- 5%) per gold equivalent ounce.
The company also expects to meet the lower end of its 2019 production cost of sales guidance of $730 (+/- 5%) gold equivalent ounces and the higher end of its 2019 capital expenditure projection of $1,050 million (+/- 5%). It anticipates income tax expenses of $175-$195 million on an adjusted basis.
Price Performance
Shares of Kinross have rallied 80.9% in the past year compared with the industry’s 55.3% growth.
Zacks Rank & Others Stocks to Consider
Kinross currently sports a Zacks Rank #1 (Strong Buy).
Impala Platinum has an expected earnings growth rate of 237.9% for the current fiscal year. The company’s shares have surged 280% in the past year.
Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 48.2% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 67.6% in the past year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Kinross (KGC) Q3 Earnings Meet Estimates, Revenues Rise Y/Y
Kinross Gold Corporation (KGC - Free Report) delivered net earnings of $60.9 million or 5 cents per share in third-quarter 2019 against loss of $104.4 million or 8 cents in the year-ago quarter.
Barring one-time items, adjusted earnings were 8 cents per share, meeting the Zacks Consensus Estimate.
Revenues rose 16.3% year over year to $877.1 million on higher average realized gold prices.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Kinross Gold Corporation price-consensus-eps-surprise-chart | Kinross Gold Corporation Quote
Operational Performance
Attributable gold production and sales were 608,033 and 592,689 ounces, up 3.7% and down 4.2% year over year, respectively.
Production cost of sales per gold equivalent ounce fell 5.4% year over year to $735 in the quarter. All-in sustaining cost per gold equivalent ounce sold declined 2% year over year to $1,028.
Margin per gold equivalent ounce sold was $732 in the third quarter, up 69.4% year over year.
Average realized gold prices amounted to $1,467 per ounce, up from $1,209 in the year-ago quarter.
Financial Review
Adjusted operating cash flow jumped 100.7% year over year in the third quarter to $295.4 million, supported by higher margins. Cash and cash equivalents were $358 million, down 23.8% year over year.
Long-term debt amounted to $1,836.8 million at the end of the third quarter. Notably, the company has no scheduled debt maturities due until September 2021.
Capital expenditure declined 3.9% year over year to $265.5 million in the third quarter.
Outlook
Kinross stated that it is on track to attain the production target of 2.5 million (+/- 5%) gold equivalent ounces for 2019. All-in sustaining costs are expected to be $995 (+/- 5%) per gold equivalent ounce.
The company also expects to meet the lower end of its 2019 production cost of sales guidance of $730 (+/- 5%) gold equivalent ounces and the higher end of its 2019 capital expenditure projection of $1,050 million (+/- 5%). It anticipates income tax expenses of $175-$195 million on an adjusted basis.
Price Performance
Shares of Kinross have rallied 80.9% in the past year compared with the industry’s 55.3% growth.
Zacks Rank & Others Stocks to Consider
Kinross currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space are Impala Platinum Holdings Ltd. (IMPUY - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Impala Platinum has an expected earnings growth rate of 237.9% for the current fiscal year. The company’s shares have surged 280% in the past year.
Franco-Nevada has a projected earnings growth rate of 39.3% for 2019. The company’s shares have rallied 48.2% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 67.6% in the past year.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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