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Kinross' (KGC) Earnings and Revenues Beat Estimates in Q2

Zacks Equity Research

Kinross Gold Corporation KGC delivered net earnings of $71.5 million or 6 cents per share in second-quarter 2019, up from $2.4 million or breakeven in the year-ago quarter.

Barring one-time items, adjusted earnings were $79.6 million or 6 cents per share. Earnings beat beat the Zacks Consensus Estimate of 3 cents.

Revenues from metal sales rose 8.1% year over year to $837.8 million on the back of higher gold equivalent ounces sold. The figure also beat the Zacks Consensus Estimate of $830.8 million.

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 production and sales were 648,251 ounces and 636,035 ounces, up 7.7% and 8.3% year over year, respectively.  

Production cost of sales per gold equivalent ounce fell 6.3% year over year to $426.1 in the quarter. All-in sustaining cost per gold equivalent ounce sold declined 9.1% year over year to $925.

Margin per gold equivalent ounce sold was $644 in the second quarter, up 19.5% year over year.

Average realized gold prices amounted to $1,307 per ounce compared with $1,306 per ounce in the year-ago quarter.

Financial Review

Adjusted operating cash flow jumped 24.3% year over year in the second quarter to $287.7 million supported by higher margins. Cash and cash equivalents were $475.4 million, down 48.3% year over year.  

Long-term debt amounted to $1,891.2 million at the end of the second quarter. Notably, the company has no scheduled debt maturities due until 2021.

Capital expenditures rose nearly 12% year over year to $276.7 million in the second quarter.


Kinross stated that it is on track to attain the gold production target of 2.5 million (+/- 5%) gold equivalent ounces in 2019 at production cost of sales of $730 (+/- 5%) per gold equivalent ounce. All-in sustaining cost is expected to be $995 (+/- 5%) per gold equivalent ounce.

Kinross continues to anticipate capital expenditures of $1,050 million (+/- 5%) for 2019.

Price Performance

Shares of Kinross have rallied 34% in the past year compared with the industry’s 37.9% surge.

Zacks Rank & Other Key Picks

Kinross currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the basic materials space are SSR Mining Inc. SSRM, Alamos Gold Inc. AGI and Arconic Inc. ARNC, all sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

SSR Mining has an expected earnings growth rate of 134.8% for 2019. The company’s shares have surged 58.7% in the past year.

Alamos Gold has projected earnings growth rate of 260% for the current year. The company’s shares have gained 35.6% in a year’s time.

Arconic has an estimated earnings growth rate of 38.2% for the current year. Its shares have moved up 12.2% in the past year.

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