U.S. markets closed
  • S&P 500

    3,825.33
    +39.95 (+1.06%)
     
  • Dow 30

    31,097.26
    +321.86 (+1.05%)
     
  • Nasdaq

    11,127.84
    +99.14 (+0.90%)
     
  • Russell 2000

    1,727.76
    +19.77 (+1.16%)
     
  • Crude Oil

    110.53
    +2.10 (+1.94%)
     
  • Gold

    1,807.50
    +6.00 (+0.33%)
     
  • Silver

    19.82
    +0.22 (+1.14%)
     
  • EUR/USD

    1.0429
    +0.0002 (+0.02%)
     
  • 10-Yr Bond

    2.8890
    0.0000 (0.00%)
     
  • GBP/USD

    1.2105
    +0.0002 (+0.01%)
     
  • USD/JPY

    135.7160
    +0.5410 (+0.40%)
     
  • BTC-USD

    19,718.22
    +576.47 (+3.01%)
     
  • CMC Crypto 200

    427.32
    +7.18 (+1.71%)
     
  • FTSE 100

    7,232.65
    +64.00 (+0.89%)
     
  • Nikkei 225

    26,153.81
    +218.19 (+0.84%)
     

Kinross (KGC) La Coipa Project in Chile Pours First Gold Bar

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Kinross Gold Corporation KGC recently announced that its La Coipa Project in Chile has poured its first gold bar. In early February this year, the project had begun commissioning at its plant, on schedule and within budget. It is expected to ramp up in the coming months to achieve full operating capacity by mid-year.

Kinross raised the expected life of La Coipa by 45% to roughly 1 million gold equivalent ounces at the end of 2021. This was done by optimizing the Phase 7 mine plan and involving the nearby Puren pit in the project.

The company intends to evaluate opportunities to further expand La Coipa’s mine plan, like a possible additional Puren pushback and incorporating other nearby pits into the project.

Kinross also signed a power purchase agreement in late 2021 to supply La Coipa with 100% renewable power for its power needs, aligned with the company’s greenhouse gas emissions reduction strategy.

Shares of KGC have declined 18.2% in the past year against a 16.9% increase of the industry.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

The company’s attributable gold equivalent ounces produced in the fourth quarter totaled 487,621 ounces, down 21.9% year over year. The downside was primarily due to lower production at Tasiast and Round Mountain.

The company, in its fourth-quarter call, stated that it expects to produce 2.65 million (+/- 5%) gold equivalent ounces for 2022. KGC anticipates production cost of sales of $830 per gold equivalent ounce.

All-in sustaining cost per ounce for 2022 is projected at $1,130. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
In 2023 and 2024, the company expects capital expenditures to be $1 billion, in line with 2022 levels.

Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation Price and Consensus
Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote

Zacks Rank & Key Picks

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

Some better-ranked stocks in the basic materials space are The Mosaic Company MOS, AdvanSix Inc. ASIX and Allegheny Technologies Incorporated ATI.

Mosaic has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS' current-year earnings has been revised 22.2% upward in the past 60 days.

Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 80.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix has a projected earnings growth rate of 20.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 15.7% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 65.7% in a year. The company carries a Zacks Rank #2 (Buy).

Allegheny, currently carrying a Zacks Rank #2, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 45.6% upward in the past 60 days.

Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 23.7% over 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

Allegheny Technologies Incorporated (ATI) : Free Stock Analysis Report

Kinross Gold Corporation (KGC) : Free Stock Analysis Report

The Mosaic Company (MOS) : Free Stock Analysis Report

AdvanSix (ASIX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research