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Kinross (KGC) Earnings and Revenues Beat Estimates in Q2
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Kinross Gold Corporation (KGC - Free Report) reported a profit of $151 million or 12 cents per share in second-quarter 2023 against a loss of $9.3 million or a penny per share reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 14 cents, surpassing the Zacks Consensus Estimate of 8 cents.
Revenues rose around 33% year over year to $1,092.3 million. The top line surpassed the Zacks Consensus Estimate of $828.4 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Total gold equivalent ounces produced in the reported quarter totaled 555,036 ounces, up 22% year over year. The upside was due to higher grades and recoveries at Paracatu and Tasiast, and increased production at La Coipa. Our estimate for the same was pegged at 557,250 ounces.
Average realized gold prices were $1,976 per ounce in the quarter, up 5.6% from the year-ago quarter’s figure. Our estimate for the same was pinned at $1,824.9 per ounce.
The production cost of sales per gold equivalent ounce was $900, down from $1,027 in the prior-year quarter. Our estimate for the same was pegged at $984.29. All-in sustaining cost per gold equivalent ounce sold declined 3.4% year over year to $1,296. Our estimate for the same was pegged at $1,330.26
Margin per gold equivalent ounce sold increased to $1,076 for the quarter from $845 a year ago.
Financial Review
Kinross had $478.4 million in cash and cash equivalents as of Jun 30, 2023, down 33% year over year.
The increase in capital stripping at Tasiast, Fort Knox and Bald Mountain, and development activities at Manh Choh were the reasons for the increase in capital expenditure from continuing operations, which rose to $281.9 million in the reported quarter from $149.4 million a year ago.
Outlook
Kinross is on track to meet its production target of 2.1 million gold equivalent ounces (+/- 5%) for 2023. Production is projected to stay strong through 2023. Kinross' productions in 2024 and 2025 are predicted to stay stable at 2.1 million and 2 million attributable gold equivalent ounces (+/- 5%), respectively.
The company is also on pace to achieve its 2023 production cost of sales, all-in-sustaining cost and attributable capital expenditure targets.
Price Performance
Shares of Kinross have gained 40.6% in the past year against a 12.5 % fall 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 PPG Industries Inc. (PPG - Free Report) , ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 11.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 13.1% for the current year. Its earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13%, on average. ATI shares have gained 54.1% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have moved up 79.1% in a year.
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Kinross (KGC) Earnings and Revenues Beat Estimates in Q2
Kinross Gold Corporation (KGC - Free Report) reported a profit of $151 million or 12 cents per share in second-quarter 2023 against a loss of $9.3 million or a penny per share reported in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 14 cents, surpassing the Zacks Consensus Estimate of 8 cents.
Revenues rose around 33% year over year to $1,092.3 million. The top line surpassed the Zacks Consensus Estimate of $828.4 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Kinross Gold Corporation price-consensus-eps-surprise-chart | Kinross Gold Corporation Quote
Operational Performance
Total gold equivalent ounces produced in the reported quarter totaled 555,036 ounces, up 22% year over year. The upside was due to higher grades and recoveries at Paracatu and Tasiast, and increased production at La Coipa. Our estimate for the same was pegged at 557,250 ounces.
Average realized gold prices were $1,976 per ounce in the quarter, up 5.6% from the year-ago quarter’s figure. Our estimate for the same was pinned at $1,824.9 per ounce.
The production cost of sales per gold equivalent ounce was $900, down from $1,027 in the prior-year quarter. Our estimate for the same was pegged at $984.29. All-in sustaining cost per gold equivalent ounce sold declined 3.4% year over year to $1,296. Our estimate for the same was pegged at $1,330.26
Margin per gold equivalent ounce sold increased to $1,076 for the quarter from $845 a year ago.
Financial Review
Kinross had $478.4 million in cash and cash equivalents as of Jun 30, 2023, down 33% year over year.
The increase in capital stripping at Tasiast, Fort Knox and Bald Mountain, and development activities at Manh Choh were the reasons for the increase in capital expenditure from continuing operations, which rose to $281.9 million in the reported quarter from $149.4 million a year ago.
Outlook
Kinross is on track to meet its production target of 2.1 million gold equivalent ounces (+/- 5%) for 2023. Production is projected to stay strong through 2023. Kinross' productions in 2024 and 2025 are predicted to stay stable at 2.1 million and 2 million attributable gold equivalent ounces (+/- 5%), respectively.
The company is also on pace to achieve its 2023 production cost of sales, all-in-sustaining cost and attributable capital expenditure targets.
Price Performance
Shares of Kinross have gained 40.6% in the past year against a 12.5 % fall 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 PPG Industries Inc. (PPG - Free Report) , ATI Inc. (ATI - Free Report) and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 11.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
ATI, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 13.1% for the current year. Its earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13%, on average. ATI shares have gained 54.1% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have moved up 79.1% in a year.