Kinross (KGC) Misses Q3 Earnings and Revenues Estimates
Kinross Gold Corporation KGC reported net loss of $104.4 million or 8 cents per share in third-quarter 2018 results, against net profit of $60.1 million or 5 cents in the year-ago quarter. The results were impacted from lower margins and higher income tax expense.
Barring one-time items, adjusted loss in the quarter were 4 cents per share, which missed the Zacks Consensus Estimate of earnings of a penny per share.
Revenues totaled $753.9 million, which declined 8.9% from $828 million in the year-ago quarter. The decline is attributed to a fall in gold equivalent ounces sold and the average realized gold price. The figure missed the Zacks Consensus Estimate of $760.2 million.
Kinross Gold Corporation Price, Consensus and EPS Surprise
Kinross Gold Corporation Price, Consensus and EPS Surprise | Kinross Gold Corporation Quote
Attributable gold production was 586,260 ounces in the quarter, down 10.4% year over year. Production cost of sales per gold equivalent ounce increased to $777 from $662 in the prior-year quarter. All-in sustaining cost per gold equivalent ounce sold increased to $1,049 from $937 in the year-ago quarter.
Margin per gold equivalent ounce sold was $432 in the quarter, down from $621 in the year-ago quarter.
Average realized gold prices was $1,209 per ounce in the quarter, down from $1,283 in the year-ago quarter.
Adjusted operating cash flow was $143.2 million, down from $320.8 million in the prior-year quarter. Cash and cash equivalents were $470.1 million as of Sep 30, 2018, down from $992.1 million as of Sep 30, 2017.
Long-term debt amounted to $1,734.4 million, up from $1,732 million in the prior-year quarter. The company has no scheduled debt maturities due until 2021.
Capital expenditures rose to $276.4 million from $204.7 million in the prior-year quarter.
Kinross reaffirmed production and cost outlook for 2018. The company continues to expect gold production of 2.5 million (+/- 5%) gold equivalent ounces. Production cost of sales guidance for the year has been kept unchanged at $730 (+/- 5%) per gold equivalent ounce. All-in sustaining cost is expected to be $975 (+/- 5%) per gold equivalent ounce.
For 2018, Kinross continues anticipating capital expenditures of roughly $1,075 million (+/- 5%), including non-sustaining capital of around $680 million and sustaining capital of $355 million.
Shares of Kinross have lost 17.6% in the past three months compared with the industry’s 6.1% decline.
Zacks Rank & Stocks to Consider
Kinross currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are Methanex Corporation MEOH, CF Industries Holdings, Inc. CF and Domtar Corporation UFS, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex has expected long-term earnings growth rate of 15%. Its shares have rallied 31.8% in the past year.
CF Industries has expected long-term earnings growth rate of 6%. Its shares have gained 41.7% in a year.
Domtar has expected long-term earnings growth rate of 5%. Its shares have moved up 8.3% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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
Methanex Corporation (MEOH) : Free Stock Analysis Report
CF Industries Holdings, Inc. (CF) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Domtar Corporation (UFS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research