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Why Is Kinross Gold (KGC) Up 7.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Kinross Gold (KGC - Free Report) . Shares have added about 7.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kinross Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kinross’ Earnings and Revenues Beat Estimates in Q2
Kinross reported a second-quarter 2023 profit of $151 million or 12 cents per share 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.
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 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 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 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 was pegged at $1,330.26
Margin per gold equivalent ounce sold increased to $1,076 in 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Kinross Gold has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Kinross Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Kinross Gold (KGC) Up 7.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Kinross Gold (KGC - Free Report) . Shares have added about 7.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Kinross Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Kinross’ Earnings and Revenues Beat Estimates in Q2
Kinross reported a second-quarter 2023 profit of $151 million or 12 cents per share 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.
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 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 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 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 was pegged at $1,330.26
Margin per gold equivalent ounce sold increased to $1,076 in 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Kinross Gold has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Kinross Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.