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Kinross' (KGC) Q2 Earnings Miss Estimates, Revenues Up Y/Y

·4-min read

Kinross Gold Corporation KGC reported a loss of $9.3 million or a penny per share in second-quarter 2022 compared with a profit of $30.1 million or 2 cents reported in the year-ago quarter.

Barring one-time items, adjusted earnings per share came in at 3 cents, missing the Zacks Consensus Estimate of 8 cents.

Revenues rose around 16% year over year to $821.5 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

Attributable gold equivalent ounces produced in the reported quarter totaled 557,491 ounces, up 3.6% year over year. The upside was due to Tasiast, which had higher grades and throughput.

Average realized gold prices were $1,872 per ounce in the quarter, up 3.2% from the year-ago quarter’s figure.

The production cost of sales per gold equivalent ounce was $1,027, up from $850 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold rose 16.6% year over year to $1,341.

Margin per gold equivalent ounce sold was $845 in the quarter, down from the prior quarter’s level of $964.

Financial Review

Adjusted operating cash flow increased 0.8% year over year in the second quarter to $251.9 million. Cash and cash equivalents were $719.1 million as of Jun 30, 2022, compared with $531.5 million as of Dec 31, 2021.

Long-term debt was $2,570.2 million at the end of the quarter, up 61.7% from $1,589.9 million as of Dec 31, 2021.

Outlook

For 2022, Kinross expects to be at the bottom end of the+/- 5% range for its production guidance of 2.15 million gold equivalent ounces. It expects a production cost of sales of $900 per gold equivalent ounce.

All-in sustaining cost per ounce for 2022 is projected at $1,240. Capital expenditures are predicted at around $850 million (+/- 5%) for this year.
In 2023 and 2024, the company expects capital expenditures to be $750 million per year.

Price Performance

Shares of Kinross have plunged 47.6% in the past year compared with a 19.7% fall of the industry.

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Zacks Investment Research


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Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Albemarle Corporation ALB, Cabot Corporation CBT and Sociedad Quimica y Minera de Chile S.A. SQM.

Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 7.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 18.1% in a year and currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 36.3% over a year.

Sociedad has a projected earnings growth rate of 513.7% for the current year. The Zacks Consensus Estimate for SQM’s current-year earnings has been revised 57.8% upward in the past 60 days.

Sociedad’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, the average being 28.2%. SQM has gained 107.5% in a year. The company sports a Zacks Rank #1.


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