Kinross(US:KGC)2024-02-14 16:00Financial Performance - Kinross reported a revenue of $4,239.7 million for the year ended December 31, 2023, an increase of 22.7% compared to $3,455.1 million in 2022[164]. - The total production cost of sales for 2023 was $2,054.4 million, up from $1,805.7 million in 2022, reflecting a 13.8% increase[164]. - Gross profit for 2023 was $1,159.6 million, significantly higher than $515.4 million in 2022, indicating a gross margin improvement[164]. - Earnings from continuing operations after tax reached $415.4 million in 2023, compared to $30.6 million in 2022, marking a substantial increase[164]. - Kinross reported a net earnings of $415.4 million in 2023, a turnaround from a net loss of $605.7 million in 2022[164]. - The earnings per share from continuing operations attributable to common shareholders was $0.34 in 2023, compared to $0.02 in 2022, showing significant improvement[164]. - Kinross reported a net cash flow from operating activities of $1,605.3 million for 2023, up from $1,002.5 million in 2022, representing a 60.1% increase[165]. - The company reported a net cash flow from continuing operations of $410.9 million for Q4 2023, down from $474.3 million in Q4 2022[179]. - Adjusted net earnings from continuing operations attributable to common shareholders for Q4 2023 were $140.0 million, compared to $108.2 million in Q4 2022, representing a 29% increase[177]. Production and Costs - The total gold equivalent ounces produced in 2023 were 2,153,020, up from 1,957,237 in 2022, representing a growth of 10%[159]. - Kinross's total gold production for Q4 2023 was 171,199 ounces, with a recovery rate of 93%[168]. - Production cost of sales from continuing operations for Q4 2023 was $552.0 million, compared to $526.5 million in Q4 2022, representing an increase of 4.4%[183]. - The production cost of sales from continuing operations per equivalent ounce sold increased to $976 in Q4 2023 from $848 in Q4 2022, reflecting a rise of 15.1%[188]. - All-in sustaining cost on a by-product basis for Q4 2023 was $721.5 million, compared to $704.9 million in Q4 2022, an increase of 2.4%[188]. - The all-in sustaining cost from continuing operations per ounce sold on a by-product basis was $1,328 in Q4 2023, compared to $1,203 in Q4 2022, an increase of 10.4%[188]. Capital Expenditures - Kinross's total capital expenditures for 2023 were $1,098.3 million, an increase from $764.2 million in 2022, marking a 44% rise[165]. - The company emphasizes the distinction between sustaining and non-sustaining capital expenditures to provide clarity on capital allocation and its impact on all-in sustaining costs[192]. - Sustaining capital expenditures for Q4 2023 totaled $150.1 million, a decrease from $178.3 million in Q4 2022, representing a 16% decline[193]. - Non-sustaining capital expenditures for Q4 2023 were $161.2 million, up from $138.5 million in Q4 2022, indicating a 16% increase[193]. - The company's sustaining capital expenditures for the full year 2023 were $554.3 million, a rise from $402.6 million in 2022, reflecting a 38% increase[194]. Assets and Liabilities - The company’s cash and cash equivalents decreased to $352.4 million as of December 31, 2023, down from $418.1 million in 2022[162]. - Total assets increased to $10,543.3 million in 2023, compared to $10,396.4 million in 2022, reflecting a growth of 1.4%[162]. - The company’s total liabilities decreased to $4,357.6 million in 2023 from $4,514.2 million in 2022, indicating a reduction of 3.5%[162]. Exploration and Resources - As of December 31, 2023, Kinross Gold Corporation reported total proven and probable gold reserves of 937,809 ounces with an average grade of 0.8 g/t[197]. - The company holds 294,790 tonnes of proven gold reserves in South America, primarily from Paracatu, with a total of 5,446 ounces[197]. - The total measured and indicated gold resources amount to 706,125 tonnes, with a total of 25,968 ounces at an average grade of 0.7 g/t[199]. - Kinross reported a total of 6,783 ounces of proven and probable silver reserves, with a significant portion from the Tasiast mine in Mauritania[197]. - The company is focused on expanding its operations in South America, particularly in Chile, to enhance its resource base[199]. Future Outlook and Strategies - The company plans to continue its market expansion and product development strategies to enhance operational efficiency and profitability in the coming years[168]. - Future outlook includes potential acquisitions to bolster its mineral resource portfolio and enhance shareholder value[199]. - Kinross aims to leverage its exploration successes to enhance shareholder value and drive future growth[246]. - The company is committed to greenhouse gas reduction initiatives and has set targets as part of its Environmental, Social, and Governance (ESG) strategy[248]. Market Sensitivity - Approximately 70%-80% of the company's costs are denominated in U.S. dollars, with a 10% change in foreign currency exchange rates impacting production costs by approximately $20 per equivalent ounce sold[250]. - A $10 per barrel change in the price of oil is expected to result in an approximate $3 impact on production cost of sales per equivalent ounce sold[252]. - A $100 change in the price of gold would result in an approximate $4 impact on production cost of sales due to changes in royalties[252].