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Kinross Gold's (KGC) Q2 Earnings and Sales Surpass Estimates
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Kinross Gold Corporation (KGC - Free Report) reported a profit from continuing operations of $210.9 million or 17 cents per share in second-quarter 2024. The figure registered an increase from a profit of $151 million or 12 cents per share recorded in the year-ago quarter.
KGC reported adjusted earnings of 14 cents per share compared with the prior-year quarter’s figure of 14 cents. The bottom line beat the Zacks Consensus Estimate of 13 cents.
Revenues rose nearly 12% year over year to $1,219.5 million in the second quarter. It topped the Zacks Consensus Estimate of $1,018.1 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
The company produced 535,338 gold equivalent ounces from continuing operations in the reported quarter, down 13.5% year over year. The figure beat our estimate of 504,994 gold equivalent ounces.
Average realized gold prices were $2,342 per ounce in the quarter, up 18.5% from the year-ago quarter’s tally. The figure beat our estimate of $2,017 per ounce.
The production cost of sales per gold equivalent ounce was $1,029, up 14% from the prior-year quarter’s levels. This was above our estimate of $1,004. All-in-sustaining cost per gold equivalent ounce sold rose nearly 7% year over year to $1,387. This was above our estimate of $1,374.
Margin per gold equivalent ounce sold was $1,313 in the quarter, up from the prior-year quarter’s $1,076.
Financials
Cash and cash equivalents were $480 million at the end of the quarter, down around 4.7% year over year. Long-term debt was $1,234.5 million at the end of the quarter, down about 36.5% year over year.
Outlook
For 2024, Kinross expects production to be 2.1 million gold equivalent ounces (+/- 5%). The company expects a production cost of sales of $1,020 per gold equivalent ounce (+/- 5%) for the year, factoring in inflation and production mix. The company expects an all-in-sustaining cost per gold equivalent ounce of $1,360 (+/- 5%) for 2024. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
Price Performance
Kinross’ shares have surged 89.9% in the past year compared with a 21.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Kinross currently sports a Zacks Rank #1 (Strong Buy).
The Zacks Consensus Estimate for Hecla's current-year earnings is pegged at 5 cents, indicating a rise of 600% from year-ago levels. The consensus estimate for HL’s earnings has increased 25% in the past 60 days.The stock has gained nearly 9% in the past year. It will report second-quarter results on Aug 6.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.8%. The company’s shares have increased 5.4% in the past year. It is slated to report fiscal third-quarter results on Aug 6.
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Kinross Gold's (KGC) Q2 Earnings and Sales Surpass Estimates
Kinross Gold Corporation (KGC - Free Report) reported a profit from continuing operations of $210.9 million or 17 cents per share in second-quarter 2024. The figure registered an increase from a profit of $151 million or 12 cents per share recorded in the year-ago quarter.
KGC reported adjusted earnings of 14 cents per share compared with the prior-year quarter’s figure of 14 cents. The bottom line beat the Zacks Consensus Estimate of 13 cents.
Revenues rose nearly 12% year over year to $1,219.5 million in the second quarter. It topped the Zacks Consensus Estimate of $1,018.1 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Kinross Gold Corporation price-consensus-eps-surprise-chart | Kinross Gold Corporation Quote
Operational Performance
The company produced 535,338 gold equivalent ounces from continuing operations in the reported quarter, down 13.5% year over year. The figure beat our estimate of 504,994 gold equivalent ounces.
Average realized gold prices were $2,342 per ounce in the quarter, up 18.5% from the year-ago quarter’s tally. The figure beat our estimate of $2,017 per ounce.
The production cost of sales per gold equivalent ounce was $1,029, up 14% from the prior-year quarter’s levels. This was above our estimate of $1,004. All-in-sustaining cost per gold equivalent ounce sold rose nearly 7% year over year to $1,387. This was above our estimate of $1,374.
Margin per gold equivalent ounce sold was $1,313 in the quarter, up from the prior-year quarter’s $1,076.
Financials
Cash and cash equivalents were $480 million at the end of the quarter, down around 4.7% year over year. Long-term debt was $1,234.5 million at the end of the quarter, down about 36.5% year over year.
Outlook
For 2024, Kinross expects production to be 2.1 million gold equivalent ounces (+/- 5%). The company expects a production cost of sales of $1,020 per gold equivalent ounce (+/- 5%) for the year, factoring in inflation and production mix. The company expects an all-in-sustaining cost per gold equivalent ounce of $1,360 (+/- 5%) for 2024. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
Price Performance
Kinross’ shares have surged 89.9% in the past year compared with a 21.6% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
Kinross currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the Basic Materials space are Hecla Mining Company (HL - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Ashland Inc. (ASH - Free Report) . Hecla and Franco-Nevada sport a Zacks Rank #1, and Ashland carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hecla's current-year earnings is pegged at 5 cents, indicating a rise of 600% from year-ago levels. The consensus estimate for HL’s earnings has increased 25% in the past 60 days.The stock has gained nearly 9% in the past year. It will report second-quarter results on Aug 6.
The Zacks Consensus Estimate for FNV’s current-year earnings is pegged at $3.27. The consensus estimate for FNV’s earnings has increased by 3% in the past 60 days. FNV beat the consensus estimate in the last four quarters, with the average earnings surprise being 10.5%. It is scheduled to release second-quarter results on Aug 13.
The Zacks Consensus Estimate for ASH’s current-year earnings is pegged at $4.56, indicating a year-over-year rise of 12%. ASH’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 5.8%. The company’s shares have increased 5.4% in the past year. It is slated to report fiscal third-quarter results on Aug 6.