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Kinross Gold's Q3 Earnings & Sales Outpace Estimates on Higher Prices

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Kinross Gold Corporation (KGC - Free Report) recorded third-quarter 2024 profit of $355.3 million or 29 cents per share compared with $109.7 million or 9 cents per share in the year-ago quarter. Adjusted earnings per share were 24 cents compared with 12 cents in the prior-year quarter. It beat the Zacks Consensus Estimate of 18 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues rose 29.9% year over year to $1,432 million, surpassing the Zacks Consensus Estimate of $1,186.7 million. The company benefited from higher average realized gold prices.

Kinross Gold Corporation Price, Consensus and EPS Surprise

Kinross Gold Corporation Price, Consensus and EPS Surprise

Kinross Gold Corporation price-consensus-eps-surprise-chart | Kinross Gold Corporation Quote

KGC’s Operational Performance

The company produced 564,106 gold equivalent ounces in the reported quarter, down 4% year over year. The reported figure was higher than our estimate of 528,770 gold equivalent ounces. Average realized gold prices were $2,477 per ounce, up around 28.4% from the year-ago quarter’s figure. The reported figure was higher than our estimate of $2,244 per ounce.

The production cost of sales per gold equivalent ounce was $976, up around 7.1% from the prior-year quarter. The reported figure was lower than our estimate of $997. All-in-sustaining cost per gold equivalent ounce sold rose roughly 4.2% year over year to $1,350. The reported figure was lower than our estimate of $1,372.

Margin per gold equivalent ounce sold was $1,501 in the quarter, up 47% from the prior quarter’s level of $1,018.

Kinross’ Financial Review

Operating cash flow was $733.5 million in the third quarter of 2024 compared with $406.8 million a year ago.

Free cash flow was $414.6 million compared with $137.7 million in the prior-year quarter.

KGC’s Outlook

Kinross remains on track to meet its production guidance of 2.1 million gold equivalent ounces (+/- 5%) and production cost of sales, all-in-sustaining cost and capital expenditure guidance for 2024. Kinross' annual production is projected to remain stable in 2025 and 2026, at around 2 million Au eq. oz.

KGC Stock’s Price Performance

Shares of Kinross have soared 103.3% in the past year compared with a 45.8% upside of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

KGC's Zacks Rank & Other Mining Releases

KGC currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agnico Eagle Mines Limited (AEM - Free Report) reported third-quarter 2024 adjusted earnings of $1.14 per share, topping the Zacks Consensus Estimate of 98 cents. AEM expects its 2024 gold production to be in the range of 3.35-3.55 million ounces and is on track to meet the mid-point of the range. 

Newmont Corporation’s (NEM - Free Report) adjusted earnings of 81 cents per share lagged the Zacks Consensus Estimate of 83 cents. NEM expects fourth-quarter 2024 attributable production of 1.8 million gold ounces.

Freeport-McMoRan Inc.’s (FCX - Free Report) adjusted earnings per share of 38 cents missed the Zacks Consensus Estimate of 40 cents. FCX expects consolidated sales volumes for 2024 to be around 4.1 billion pounds of copper, 1.8 million ounces of gold and 80 million pounds of molybdenum. 

 


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