We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Kinross (KGC) Beats Earnings and Revenue Estimates in Q1
Read MoreHide Full Article
Kinross Gold Corporation (KGC - Free Report) reported net profit of $106.1 million or 8 cents per share in first-quarter 2018, down 21.2% from $134.6 million or 11 cents recorded in the year-ago quarter.
The company’s adjusted earnings (excluding one-time items) were $125.2 million or 10 cents per share, more than five-fold rise from $23.4 million or 2 cents recorded a year-ago. Earnings per share surpassed the Zacks Consensus Estimate of 5 cents.
Revenues of $897.2 million in the quarter rose around 12.7% from $796.1 million recorded in the year-ago quarter owing to an increase in gold equivalent ounces sold and a higher realized gold price. Revenues beat the Zacks Consensus Estimate of $816 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Attributable gold production was 653,937 ounces for the quarter, down 2.7% year over year. Production cost of sales per gold equivalent ounce declined to $658 from $701 recorded in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold declined to $846 from $953 a year ago.
Margin per gold equivalent ounce sold was $672 in the quarter, up from $519 a year ago.
Average realized gold prices was $1,330 per ounce in the quarter, up 9% from $1,220 a year ago.
Financial Review
Adjusted operating cash flow was $363.7 million for the quarter, up from $250.9 million in the prior-year quarter. Cash and cash equivalents were $997.9 million as of Mar 31, 2018, up from $819 million as of Mar 31, 2017.
Long-term debt was essentially flat year over year at $1,733.2 million and there are no scheduled debt repayments due for the company until 2021.
Capital expenditures rose to $246.9 million in the quarter from $178.9 million in the prior-year quarter owing to higher spending at Tasiast and Round Mountain, partly offset by lower spending at Fort Knox, Paracatu and Chirano.
Development Updates
Kinross announced that it is proceeding with the Round Mountain Phase W and Bald Mountain Vantage projects in Nevada. Kinross has almost completed the Phase One expansion of the Tasiast mine and the project remains on track to achieve throughput capacity of 12,000 ton per day by the end of June 2018.
The company expects to commence mining of high-grade ore at Moroshka in the second half of the year. Moreover, the Fort Knox Gilmore feasibility study in Alaska is expected to be completed in June 2018.
Outlook
The company has reaffirmed its production and cost outlook for 2018. Kinross expects gold production of 2.5 million gold equivalent ounces in 2018. Production cost of sales for the year has been forecast at $730 per gold equivalent ounce. All-in sustaining cost is expected to be $975 per gold equivalent ounce.
Kinross sees capital expenditure of roughly $1,075 million (+/- 5%) for 2018.
Price Performance
Shares of Kinross have moved up 5.6% over a year, outperforming the 2.3% decline recorded by its industry.
FMC Corporation has an expected long-term earnings growth rate of 11.3%. Its shares have gained around 18% over a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up around 14.5% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained around 29% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Kinross (KGC) Beats Earnings and Revenue Estimates in Q1
Kinross Gold Corporation (KGC - Free Report) reported net profit of $106.1 million or 8 cents per share in first-quarter 2018, down 21.2% from $134.6 million or 11 cents recorded in the year-ago quarter.
The company’s adjusted earnings (excluding one-time items) were $125.2 million or 10 cents per share, more than five-fold rise from $23.4 million or 2 cents recorded a year-ago. Earnings per share surpassed the Zacks Consensus Estimate of 5 cents.
Revenues of $897.2 million in the quarter rose around 12.7% from $796.1 million recorded in the year-ago quarter owing to an increase in gold equivalent ounces sold and a higher realized gold price. Revenues beat the Zacks Consensus Estimate of $816 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Kinross Gold Corporation Price, Consensus and EPS Surprise | Kinross Gold Corporation Quote
Operational Performance
Attributable gold production was 653,937 ounces for the quarter, down 2.7% year over year. Production cost of sales per gold equivalent ounce declined to $658 from $701 recorded in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold declined to $846 from $953 a year ago.
Margin per gold equivalent ounce sold was $672 in the quarter, up from $519 a year ago.
Average realized gold prices was $1,330 per ounce in the quarter, up 9% from $1,220 a year ago.
Financial Review
Adjusted operating cash flow was $363.7 million for the quarter, up from $250.9 million in the prior-year quarter. Cash and cash equivalents were $997.9 million as of Mar 31, 2018, up from $819 million as of Mar 31, 2017.
Long-term debt was essentially flat year over year at $1,733.2 million and there are no scheduled debt repayments due for the company until 2021.
Capital expenditures rose to $246.9 million in the quarter from $178.9 million in the prior-year quarter owing to higher spending at Tasiast and Round Mountain, partly offset by lower spending at Fort Knox, Paracatu and Chirano.
Development Updates
Kinross announced that it is proceeding with the Round Mountain Phase W and Bald Mountain Vantage projects in Nevada. Kinross has almost completed the Phase One expansion of the Tasiast mine and the project remains on track to achieve throughput capacity of 12,000 ton per day by the end of June 2018.
The company expects to commence mining of high-grade ore at Moroshka in the second half of the year. Moreover, the Fort Knox Gilmore feasibility study in Alaska is expected to be completed in June 2018.
Outlook
The company has reaffirmed its production and cost outlook for 2018. Kinross expects gold production of 2.5 million gold equivalent ounces in 2018. Production cost of sales for the year has been forecast at $730 per gold equivalent ounce. All-in sustaining cost is expected to be $975 per gold equivalent ounce.
Kinross sees capital expenditure of roughly $1,075 million (+/- 5%) for 2018.
Price Performance
Shares of Kinross have moved up 5.6% over a year, outperforming the 2.3% decline recorded by its industry.
Zacks Rank & Stocks to Consider
Kinross currently carries a Zacks Rank #3 (Hold).
A few better-ranked companies in the basic materials space worth considering are FMC Corporation (FMC - Free Report) , Huntsman Corporation (HUN - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FMC Corporation has an expected long-term earnings growth rate of 11.3%. Its shares have gained around 18% over a year.
Huntsman has an expected long-term earnings growth rate of 8.3%. Its shares have moved up around 14.5% over a year.
Kronos has an expected long-term earnings growth rate of 5%. Its shares have gained around 29% over a year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>