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
