Kinross Gold's Q3 Earnings & Sales Outpace Estimates on Higher Prices

Core Viewpoint - Kinross Gold Corporation (KGC) reported significant growth in profit and revenue for the third quarter of 2024, driven by higher gold prices and operational efficiency [1][2]. Financial Performance - KGC recorded a profit of $355.3 million or 29 cents per share, up from$109.7 million or 9 cents per share in the same quarter last year. Adjusted earnings per share were 24 cents compared to 12 cents previously, beating the Zacks Consensus Estimate of 18 cents [1]. - Revenues increased by 29.9% year over year to $1,432 million, exceeding the Zacks Consensus Estimate of$1,186.7 million [2]. Operational Performance - The company produced 564,106 gold equivalent ounces, a decrease of 4% year over year, but higher than the estimate of 528,770 ounces. Average realized gold prices were $2,477 per ounce, up approximately 28.4$976, an increase of 7.1% year over year, but lower than the estimate of $997. All-in-sustaining cost per gold equivalent ounce sold rose roughly 4.2$1,350, also lower than the estimate of $1,372 [4]. Cash Flow and Financial Review - Operating cash flow was$733.5 million in Q3 2024, compared to $406.8 million a year ago. Free cash flow increased to$414.6 million from $137.7 million in the prior-year quarter [5]. Outlook - KGC is on track to meet its production guidance of 2.1 million gold equivalent ounces (+/- 5%) and other cost and capital expenditure guidance for 2024. Annual production is expected to remain stable at around 2 million gold equivalent ounces in 2025 and 2026 [6]. Stock Performance - KGC shares have increased by 103.3% over the past year, outperforming the industry average increase of 45.8% [7].