Kinross Gold Revenue Rises in Q2, Profit Misses Estimates

Kinross Gold

Kinross Gold (NYSE:KGC) reported last week its second-quarter financial results. Here are the important points to keep in mind.

Key Financial Results

For the second quarter of 2022, Kinross Gold Corporation (NYSE:KGC) posted a loss of $9.3 million or $0.01 per share, compared with a profit of $30.1 million or $0.02 per share in the prior-year quarter.

With one-time factors excluded, adjusted profits per share came in at $0.03 per share, falling short of the consensus estimate of $0.08.

Revenues increased by around 16% from the previous year to $821.5 million.

Kinross produced 557,491 ounces of attributable gold equivalent in the reported quarter, an increase of 3.6% compared to the same period last year. Tasiast, which had better grades and throughput, contributed to the positive outcome.

In the second quarter, average realized gold prices increased by 3.2% to $1,872 per ounce.

Compared to the same quarter last year, the production cost of sales per gold equivalent ounce increased to $1,027 from $850. All-in sustaining cost per gold equivalent ounce sold increased 16.6% from the previous year to $1,341.

The quarter’s margin per gold equivalent ounce sold decreased from the prior quarter’s level of $964 to $845.

The second quarter saw an increase in adjusted operating cash flow of 0.8% year over year to $251.9 million. As of June 30, 2022, there was $719.1 million in cash and cash equivalents, up from $531.5 million on December 31, 2021.

At the conclusion of the quarter, long-term debt stood at $2,570.2 million, up 61.7% from $1,589.9 million as of December 31, 2021.

Kinross’ Outlook for 2022

By 2022, Kinross expects to be in the low +/- 5% range for its production forecast of 2.15 million gold equivalent ounces. It anticipates a production cost of sale of $900 per gold equivalent ounce.

The expected all-in sustaining cost per ounce in 2022 is $1,240. This year’s estimate for capital expenditures is $850 million (+/- 5%).

The company anticipates annual capital expenditures of $750 million in 2023 and 2024.

Kinross Stock Performance 

Kinross shares have fallen 47.6% in the last year, while the industry as a whole fell by 19.7%.

Featured Image: Megapixl @Piter2121

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About the author: Stephanie Bedard-Chateauneuf has over four years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on consumer stocks, cannabis stocks, tech stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.