Kinross Gold Reports Strong Q3 Earnings, Surpasses Expectations
Kinross Gold Corporation (KGC) reported a profit of $355.3 million, equating to 29 cents per share for the third quarter of 2024. This shows a significant increase compared to last year’s profit of $109.7 million, or 9 cents per share. The company’s adjusted earnings also improved to 24 cents per share, surpassing the Zacks Consensus Estimate of 18 cents, which highlights strong financial performance.
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Revenue Growth Driven by Higher Gold Prices
Kinross experienced a 29.9% year-over-year increase in revenue, totaling $1,432 million, which was well above the Zacks Consensus Estimate of $1,186.7 million. The company attributed this growth primarily to 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
Production Insights
In terms of production, KGC produced 564,106 gold equivalent ounces during the quarter, a slight decrease of 4% from the previous year. However, this figure exceeded expectations, which were set at 528,770 gold equivalent ounces. Notably, average realized gold prices increased to $2,477 per ounce, marking a 28.4% rise compared to the previous year and surpassing the estimate of $2,244 per ounce.
The cost of sales per gold equivalent ounce rose to $976, a 7.1% increase from the prior year, yet it remained below the forecast of $997. The all-in sustaining cost per gold ounce sold also showed a year-over-year increase of about 4.2%, reaching $1,350, which was better than the anticipated $1,372.
Margin per gold equivalent ounce sold significantly improved, rising 47% to $1,501 from the previous quarter’s $1,018.
Financial Overview
Kinross reported operating cash flow of $733.5 million in Q3 2024, up from $406.8 million a year earlier. Free cash flow also saw a boost, totaling $414.6 million compared to $137.7 million in the same quarter last year.
Outlook for the Future
Looking ahead, Kinross is well-positioned to meet its production guidance of 2.1 million gold equivalent ounces for 2024, with a margin of plus or minus 5%. Additionally, the company expects production levels to remain stable at approximately 2 million gold equivalent ounces in both 2025 and 2026.
Stock Performance
In the past year, Kinross stock has surged 103.3%, outpacing the industry’s 45.8% growth, illustrating strong investor confidence.
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Analyst Ratings and Industry Peers
KGC currently holds a Zacks Rank of #1 (Strong Buy). Other mining companies also reported their earnings recently. Agnico Eagle Mines Limited (AEM) announced adjusted earnings of $1.14 per share, exceeding the Zacks Consensus Estimate of 98 cents. The company projects its 2024 gold production to fall between 3.35-3.55 million ounces. Meanwhile, Newmont Corporation (NEM) reported adjusted earnings of 81 cents, slightly missing the Zacks expectation of 83 cents, and anticipates fourth-quarter production of 1.8 million ounces of gold. Freeport-McMoRan Inc. (FCX) posted adjusted earnings of 38 cents, just below the consensus of 40 cents, and expects consolidated sales for 2024 to be approximately 4.1 billion pounds of copper, 1.8 million ounces of gold and 80 million pounds of molybdenum.
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