Singapore markets closed
  • Straits Times Index

    3,363.68
    -13.97 (-0.41%)
     
  • S&P 500

    4,119.21
    +42.61 (+1.05%)
     
  • Dow

    34,092.96
    +6.92 (+0.02%)
     
  • Nasdaq

    11,816.32
    +231.77 (+2.00%)
     
  • BTC-USD

    23,828.39
    +750.66 (+3.25%)
     
  • CMC Crypto 200

    544.09
    +301.41 (+124.20%)
     
  • FTSE 100

    7,805.00
    +43.89 (+0.57%)
     
  • Gold

    1,970.40
    +27.60 (+1.42%)
     
  • Crude Oil

    76.24
    -0.17 (-0.22%)
     
  • 10-Yr Bond

    3.3970
    0.0000 (0.00%)
     
  • Nikkei

    27,402.05
    +55.17 (+0.20%)
     
  • Hang Seng

    21,958.36
    -113.82 (-0.52%)
     
  • FTSE Bursa Malaysia

    1,489.80
    +4.30 (+0.29%)
     
  • Jakarta Composite Index

    6,890.57
    +28.31 (+0.41%)
     
  • PSE Index

    6,986.19
    -49.57 (-0.70%)
     

Kinross' (KGC) Earnings Miss Estimates in Q3, Revenues Up Y/Y

Kinross Gold Corporation KGC reported profits of $65.9 million or 5 cents per share in third-quarter 2022 compared with a loss of $72.9 million or 6 cents reported in the year-ago quarter. Earnings per share missed the Zacks Consensus Estimate of 6 cents.

Revenues rose around 47% year over year to $856.5 million.

 

Kinross Gold Corporation Price, Consensus and EPS Surprise

 

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

 

Operational Performance

The company produced 529,155 gold equivalent ounces from continuing operations in the reported quarter, up 61% year over year. The upside was due to higher production at Tasiast, Paracatu and La Coipa.

Average realized gold prices were $1,732 per ounce in the quarter, down around 3% from the year-ago quarter’s figure.

The production cost of sales per gold equivalent ounce was $941, up around 6% from the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold fell roughly 6% year over year to $1,282.

Margin per gold equivalent ounce sold was $791 in the quarter, down from the prior quarter’s level of $901.

Financial Review

Cash and cash equivalents were $488.4 million at the end of the reported quarter, down around 17% year over year. Long-term debt was $2,471.6 million at the end of the quarter, up around 77% year over year.

Adjusted operating cash flow increased around 84% year over year in the third quarter to $259.4 million.

Outlook

For 2022, Kinross expects production to be around 2 million gold equivalent ounces factoring in slower-than-expected ramp-up at La Coipa and challenges related to commissioning the Tasiast 21k project.

The company expects to be modestly above its revised production cost of sales of roughly $900 per gold equivalent ounce for the year and in line with its all-in sustaining cost per ounce guidance of around $1,240.

Capital expenditures are predicted at around $750 million for this year.

Price Performance

Shares of Kinross have declined 40.1% in the past year compared with an 11.1% fall of the industry.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Zacks Rank & Key Picks

Kinross currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth considering in the basic materials space include Sociedad Quimica y Minera de Chile S.A. SQM, Commercial Metals Company CMC and Reliance Steel & Aluminum Co. RS.

Sociedad has a projected earnings growth rate of 538.1% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 1.2% upward in the past 60 days.

Sociedad has a trailing four-quarter earnings surprise of roughly 27.2%. SQM has rallied roughly 60% in a year. The company currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Commercial Metals currently carries a Zacks Rank #1. The Zacks Consensus Estimate for CMC's current-year earnings has been revised 3.8% upward in the past 60 days.

Commercial Metals’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 19.7%, on average. CMC has gained around 38% in a year.

Reliance Steel, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 29.7% for the current year. The Zacks Consensus Estimate for RS's current-year earnings has been revised 0.1% upward in the past 60 days.

Reliance Steel’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 13.6%, on average. RS has gained around 28% in a year.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Reliance Steel & Aluminum Co. (RS) : Free Stock Analysis Report
 
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
 
Sociedad Quimica y Minera S.A. (SQM) : Free Stock Analysis Report
 
Commercial Metals Company (CMC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research