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Kinross' (KGC) Earnings and Revenues Lag Estimates in Q1

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·4 min read
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Kinross Gold Corporation KGC logged profits of $149.5 million or 12 cents per share in first-quarter 2021, up from $122.7 million or 10 cents reported in the year-ago quarter.

Barring one-time items, adjusted earnings came in at 15 cents per share that missed the Zacks Consensus Estimate of 17 cents.

Revenues rose 12% year over year to $986.5 million. However, the top line missed the Zacks Consensus Estimate of $1069.9 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 558,777 ounces, down 1.5% year over year. The downside was mainly due to lower production at Tasiast and Round Mountain. This was partly offset by higher production at Bald Mountain.

Average realized gold prices were $1,787 per ounce in the quarter, up 13% from the year-ago quarter’s figure.

Production cost of sales per gold equivalent ounce was $756 in the quarter, almost in-line with $754 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold fell 1.8% year over year to $975.

Margin per gold equivalent ounce sold was $1,031 in the quarter, up 25% year over year.

Financial Review

Adjusted operating cash flow declined 4.5% year over year in the first quarter to $399.6 million due to increase in current tax expense, offset by higher operating earnings. Cash and cash equivalents were $1,056.1 million as of Mar 31, down 8.3% year over year.

Long-term debt was $1,425.5 million at the end of the first quarter, down 42.7% year over year.

Outlook

For 2021, Kinross expects to produce 2.4 million (+/- 5%) gold equivalent ounces at production cost of sales of $790 per gold equivalent ounce.

All-in sustaining cost per ounce for 2021 is projected at $1,025. Capital expenditures are predicted at around $900 million (+/- 5%) for this year.

In 2022 and 2023, the company expects annual production to increase to around 2.7 and 2.9 million gold equivalent ounces, respectively. Kinross also anticipates production at an average 2.5 million gold equivalent ounces per year through the end of the decade.

Price Performance

Shares of Kinross have gained 11.2% in the past year compared with 1% rise of the industry.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are Dow Inc. DOW, Celanese Corporation CE and Cabot Corporation CBT.

Dow has a projected earnings growth rate of nearly 261.5% for the current year. The company’s shares have surged 112% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Celanese has an expected earnings growth rate of around 68.3% for the current year. The company’s shares have gained 127.7% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of 115.9% for the current fiscal. The company’s shares have gained 118.6% in the past year. It currently carries a Zacks Rank #2 (Buy).

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Kinross Gold Corporation (KGC) : Free Stock Analysis Report

Dow Inc. (DOW) : Free Stock Analysis Report

Cabot Corporation (CBT) : Free Stock Analysis Report

Celanese Corporation (CE) : Free Stock Analysis Report

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