Kinross Gold stock rises on Q1 earnings surprise

Shares of Kinross Gold (TSX: K, NYSE: KGC) rose to a near 52-week high on Wednesday after outperforming analysts’ estimates in the first quarter of 2023. The stock was up 2.4% to $7.30 per share by 1 p.m. in Toronto, for a market value of $9.1 billion.

Earlier, the company released its first-quarter 2023 results, highlighted by net earnings of US$90.2 million or US7¢ per share. This was above the Zacks Consensus Estimate of US5¢ per share, and better than the earnings of US6¢ per share recorded a year ago.

The Canadian gold miner has now surpassed consensus EPS estimates twice over the last four quarters. In the last quarter of 2022, the company produced earnings of US9¢ per share, US2¢ higher than expected.

The latest quarter was marked by stronger production that helped generate revenues of US$929.3 million, compared to US$700.9 million during the same period in 2022.

Total quarterly production from continuing operations was 466,022 gold-equivalent ounces, representing a 23% year-over-year increase. All-in sustaining cost per ounce sold was US$1,321 in the first quarter, up from US$1,231 in the 2022 comparable period.

The higher quarterly output was attributed to the production ramp-up at La Coipa, which achieved record grades and recoveries since restarting operations last year.

Tasiast also delivered strong production, including two record-production months in January and March. Paracatu remains a solid contributor with higher year-over-year production at lower costs.

Across the portfolio, all projects are on plan and met quarterly production targets, says Kinross.

“Tasiast, La Coipa and Paracatu delivered strong production, margins and cash flow, including two record production months and record grades at Tasiast. Our U.S. operations delivered on plan as we continue to reinvest in our future with a focus on higher-margin opportunities,” Kinross CEO Paul Rollinson said. “Our portfolio of operations is well positioned and on track to deliver our annual production and cost guidance.”

Rollinson added that the company’s Tasiast 24k project should reach nameplate capacity mid-year and the Tasiast solar power plant is expected to come online by year-end.

Drilling at the company’s advanced Great Bear gold exploration project in Ontario has also continued to return high-grade mineralization with good widths, including at depths of more than 1 km, he said.