Yahoo Finance Kinross' (KGC) Earnings and Sales Surpass Estimates in Q4
Kinross Gold Corporation KGC recorded a loss of $106 million or 8 cents per share in fourth-quarter 2022 compared with a loss of $66.2 million or 5 cents in the year-ago quarter.
KGC reported adjusted earnings of 9 cents per share in the fourth quarter, up from the prior year’s figure of 2 cents. It beat the Zacks Consensus Estimate of 7 cents.
Revenues climbed by 75% year over year to $1,076.2 million in the fourth quarter. It topped the Zacks Consensus Estimate of $962.8 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 595,683 gold equivalent ounces from continuing operations in the reported quarter, up 75% year over year.
Average realized gold prices were $1,731 per ounce in the quarter, down 3.7% from the year-ago quarter’s figure.
The production cost of sales per gold equivalent ounce was $848, down 4.6% from the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold fell roughly 17% year over year to $1,236.
Margin per gold equivalent ounce sold was $883 in the quarter, down from the prior quarter’s $908.
FY22 Results
Earnings, as adjusted, for full-year 2022 were 22 cents per share compared with 17 cents a year ago. Net sales climbed 33% to $3,455.1 million.
Financials
Cash and cash equivalents were $418.1 million at the end of the reported quarter, down around 21% year over year. Long-term debt was $2,556.9 million at the end of the quarter, up about 61%.
Operating cash flow increased approximately 220% year over year in the fourth quarter to $474.3 million.
Outlook
For 2023, Kinross expects production to be 2.1 million gold equivalent ounces (+/- 5%). For the first quarter, the company expects production to be lower than the rest of the year due to shutdowns at Tasiast related to the 24K project and at La Coipa. Seasonal impacts of mining at Paracatu are also expected to slow down production in the first quarter.
The company expects production cost of sales of $970 per gold equivalent ounce (+/- 5%) for the year, factoring in inflation, including higher labor and consumables costs. The company expects all-in sustaining cost per gold equivalent ounce of $1,320 for 2023.
Capital expenditures are predicted at around $1 billion (+/- 5%) for this year.
Price Performance
Shares of Kinross have declined 33.7% in the past year compared with a 13.4% fall of the industry.
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Zacks Rank & Other Key Picks
Kinross currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks to consider in the basic materials space are Alpha Metallurgical Resources, Inc. AMR, ATI Inc. ATI and Nucor Corporation NUE. ATI and NUE currently sport a Zacks Rank #1 (Strong Buy), while AMR carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alpha Metallurgical’s shares have gained 90.4% in the past year. The Zacks Consensus Estimate for AMR’s current-year earnings has been revised 1.7% upward in the past 60 days. The company has an earnings growth rate of 425% for the current year.
Alpha Metallurgical topped Zacks Consensus Estimate in two of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.1% on average.
ATI’s shares have gained 72.1% in the past year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 0.9% upward in the past 60 days. The company has an earnings growth rate of 8% for the current year.
ATI topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.4% on average.
Nucor’s shares have gained 36.7% in the past year. The Zacks Consensus Estimate for NUE’s current-year earnings has been revised 12.5% upward in the past 60 days.
Nucor topped Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 7.7% on average.
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