Kinross' (KGC) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Zacks Investment Research | Feb 11, 2021 03:46AM ET
Kinross Gold (NYSE:KGC) Corporation
Kinross Gold Corporation Quote
Attributable gold equivalent ounces produced in the reported quarter totaled 624,032 ounces, down 3.3% year over year. The downside was mainly due to lower production at Bald Mountain, Round Mountain and Chirano. This was offset by higher production at Tasiast and Paracatu.
Record high annual production and low cost of sales per ounce sold was delivered by Tasiast in 2020 for the second consecutive year. Fort Knox Gilmore project was also completed on time and within budget. The company maintained operations throughout 2020 and delivered on original annual production, cost and capital expenditures despite the pandemic.
Average realized gold prices were $1,875 per ounce in the quarter, up 26.3% from the year-ago quarter’s figure.
Production cost of sales per gold equivalent ounce was $682 in the quarter, down 8.3% from $744 in the prior-year quarter on reduced costs at Paracatu, Fort Knox and Round Mountain. All-in sustaining cost per gold equivalent ounce sold fell 3.5% year over year to $1013.
Margin per gold equivalent ounce sold was $1,193 in the quarter, up 61% year over year.
h3 FY20 Results/h3Earnings (as reported) for full-year 2020 were $1.07 per share compared with earnings of 57 cents per share a year ago. Net sales gained 20.5% year over year to $4,213.4 million.
h3 Financial Review/h3Adjusted operating cash flow jumped 36% year over year in the fourth quarter to $527.6 million. Cash and cash equivalents were $1,210.9 million as of Dec 31, up 110.6% year over year.
Long-term debt was $1,424.2 million at the end of 2020, down 22.5% year over year.
h3 Outlook/h3For 2021, Kinross expects to produce 2.4 million 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.
h3 Price Performance/h3Shares of Kinross have rallied 46.2% in the past year compared with 22.5% rise of the industry .
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Kinross currently carries a Zacks Rank #3 (Buy).
Some better-ranked stocks in the basic materials space are Fortescue Metals Group (OTC:FSUGY) Limited IMPUY .
Fortescue has a projected earnings growth rate of 74.2% for the current fiscal. The company’s shares have surged around 143.6% in a year. It currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BHP has an expected earnings growth rate of 59.5% for the current fiscal. The company’s shares have gained around 33.3% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 189.4% for the current fiscal. The company’s shares have rallied around 55.1% in the past year. It currently sports a Zacks Rank #1.
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