Kinross Gold Corporation (KGC) Bundle
A Brief History of Kinross Gold Corporation
Kinross Gold Corporation, established in 1993, has evolved into one of the leading gold mining companies globally. Headquartered in Toronto, Canada, the company operates several mines across North America, South America, and West Africa.
Recent Financial Performance (2024)
As of Q2 2024, Kinross reported a robust performance, showcasing significant growth in various financial metrics:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Net Earnings | $210.9 million | $151.0 million | +40% |
| Earnings per Share | $0.17 | $0.12 | +42% |
| Operating Cash Flow | $604.0 million | $528.6 million | +14% |
| Free Cash Flow | $345.9 million | $258.3 million | +34% |
| Metal Sales | $1,219.5 million | $1,092.3 million | +12% |
| Production Cost of Sales | $536.1 million | $497.9 million | +8% |
| Average Realized Gold Price | $2,342 per ounce | $1,976 per ounce | +18% |
Production Overview
In Q2 2024, the company produced a total of 535,338 gold equivalent ounces, reflecting a slight decrease from 555,036 ounces in Q2 2023. The total gold equivalent ounces sold were 520,760, down from 552,969 in the prior year.
| Production Metrics | Q2 2024 | Q2 2023 |
|---|---|---|
| Gold Equivalent Ounces Produced | 535,338 | 555,036 |
| Gold Equivalent Ounces Sold | 520,760 | 552,969 | Production Cost per Equivalent Ounce Sold | $1,029 | $900 |
Operational Highlights
Key operational highlights from Q2 2024 include:
- Fort Knox achieved a solid performance, increasing production significantly at lower costs compared to Q1 2024.
- Tasiast remained the highest-margin operation, generating substantial free cash flow.
- Manh Choh poured its first gold bar on July 8, 2024, and is on track for full commissioning in Q3 2024.
Balance Sheet and Liquidity
As of June 30, 2024, Kinross maintained a strong balance sheet with:
| Balance Sheet Metrics | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $480.0 |
| Total Liquidity | $2,100.0 |
| Debt Repayment | $200.0 |
The company declared a quarterly dividend of $0.03 per common share, payable on September 6, 2024, to shareholders of record at the close of business on August 22, 2024.
Climate Initiatives
Kinross released its 2023 Climate Report, outlining progress toward achieving a 30% reduction in Scope 1 and Scope 2 GHG emissions intensity by 2030.
A Who Owns Kinross Gold Corporation (KGC)
Major Shareholders
As of 2024, the ownership structure of Kinross Gold Corporation (KGC) is characterized by a diversified group of institutional and retail investors. The major shareholders include:
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| Vanguard Group, Inc. | 8.2% | Institutional Investor |
| BlackRock, Inc. | 6.5% | Institutional Investor |
| Fidelity Investments | 4.3% | Institutional Investor |
| Royal Bank of Canada | 3.1% | Institutional Investor |
| Other Institutional Investors | 25.0% | Various |
| Retail Investors | 53.0% | Individual Shareholders |
Recent Stock Performance
Kinross Gold Corporation's stock performance has been influenced by several factors including gold prices, operational efficiency, and market conditions. The average realized gold price in Q2 2024 was $2,342 per ounce, compared to $1,976 per ounce in Q2 2023.
Market Capitalization
As of June 30, 2024, Kinross Gold Corporation had a market capitalization of approximately $7.4 billion.
Dividend Policy
Kinross has maintained a consistent dividend policy. The Board of Directors declared a quarterly dividend of $0.03 per common share payable on September 6, 2024.
Financial Performance Overview
In Q2 2024, Kinross reported net earnings of $210.9 million, or $0.17 per share, representing a 40% increase compared to the previous year. The company's financial highlights include:
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Metal Sales | $1,219.5 million | $1,092.3 million |
| Production Cost of Sales | $536.1 million | $497.9 million |
| Operating Earnings | $298.3 million | $237.8 million |
| Net Cash Flow from Operations | $604.0 million | $528.6 million |
Liquidity Position
As of June 30, 2024, Kinross Gold Corporation had total liquidity of approximately $2.1 billion, which includes cash and cash equivalents of $480.0 million.
Strategic Initiatives
Kinross continues to focus on operational efficiency and growth projects, with significant progress reported at various sites, including Tasiast and Manh Choh.
Kinross Gold Corporation (KGC) Mission Statement
Mission Statement Overview
Kinross Gold Corporation aims to be the world’s most valued gold mining company by adhering to its core principles of integrity, transparency, and sustainability. The company focuses on delivering long-term value to its shareholders, while also contributing positively to the communities where it operates.
Financial Performance and Metrics
As of 2024, Kinross Gold Corporation has demonstrated strong financial performance. Key metrics from the second quarter of 2024 include:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Gold Equivalent Ounces Produced | 535,338 | 555,036 | -4% |
| Total Gold Equivalent Ounces Sold | 520,760 | 552,969 | -6% |
| Revenue (in millions USD) | $1,219.5 | $1,092.3 | 12% |
| Production Cost of Sales per Equivalent Ounce | $1,029 | $900 | 14% |
| All-in Sustaining Cost per Ounce | $1,387 | $1,296 | 7% |
| Net Earnings (in millions USD) | $210.9 | $151.0 | 40% |
| Earnings per Share (USD) | $0.17 | $0.12 | 42% |
| Operating Cash Flow (in millions USD) | $604.0 | $528.6 | 14% |
| Attributable Free Cash Flow (in millions USD) | $345.9 | $258.3 | 34% |
Strategic Objectives
- Operational Excellence: Kinross is committed to achieving operational excellence through innovative mining practices and efficient resource management.
- Community Engagement: The company actively engages with local communities to foster sustainable development and social responsibility.
- Environmental Stewardship: Kinross aims to minimize its environmental impact and is working towards a 30% reduction in Scope 1 and Scope 2 GHG emissions intensity by 2030.
- Financial Discipline: The company focuses on maintaining a strong balance sheet, with total liquidity of approximately $2.1 billion as of June 30, 2024.
Recent Developments
In July 2024, Kinross achieved a significant milestone by pouring the first gold bar at the Manh Choh project. This project is expected to contribute to the company's production and financial performance in the coming quarters.
Conclusion of Financial Highlights
Kinross Gold Corporation continues to show resilience and strong financial health, with reported net earnings increasing by 40% year-over-year. The company's focus on operational excellence, community engagement, and environmental stewardship aligns with its mission to deliver long-term value.
How Kinross Gold Corporation (KGC) Works
Operating Highlights
As of Q2 2024, Kinross Gold Corporation produced a total of 535,338 gold equivalent ounces (Au eq. oz.), compared to 555,036 Au eq. oz. in Q2 2023. The total gold equivalent ounces sold amounted to 520,760 in Q2 2024, slightly down from 552,969 in the same period last year.
Financial Performance
Kinross reported metal sales of $1,219.5 million for Q2 2024, representing an increase from $1,092.3 million in Q2 2023. The production cost of sales was $536.1 million in Q2 2024, up from $497.9 million in Q2 2023. The average realized gold price was $2,342 per ounce in Q2 2024, compared to $1,976 per ounce in Q2 2023.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Metal Sales | $1,219.5 million | $1,092.3 million |
| Production Cost of Sales | $536.1 million | $497.9 million |
| Average Realized Gold Price | $2,342 per ounce | $1,976 per ounce |
| Net Earnings | $210.9 million | $151.0 million |
| Earnings per Share | $0.17 | $0.12 |
Cost Metrics
The production cost of sales per equivalent ounce sold was $1,029 in Q2 2024, compared to $900 in Q2 2023. The all-in sustaining cost per equivalent ounce sold was $1,387 for Q2 2024, an increase from $1,296 in Q2 2023.
| Cost Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Production Cost of Sales per Equivalent Ounce | $1,029 | $900 |
| All-in Sustaining Cost per Equivalent Ounce | $1,387 | $1,296 |
Cash Flow and Capital Expenditures
Operating cash flow for Q2 2024 was $604.0 million, compared to $528.6 million in Q2 2023. Adjusted operating cash flow was $478.1 million in Q2 2024. Attributable free cash flow increased to $345.9 million, up from $258.3 million in Q2 2023. Capital expenditures for Q2 2024 were $274.2 million, slightly down from $281.9 million in Q2 2023.
| Cash Flow Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Cash Flow | $604.0 million | $528.6 million |
| Adjusted Operating Cash Flow | $478.1 million | $459.1 million |
| Attributable Free Cash Flow | $345.9 million | $258.3 million |
| Capital Expenditures | $274.2 million | $281.9 million |
Balance Sheet Strength
As of June 30, 2024, Kinross had cash and cash equivalents totaling $480.0 million, an increase from $352.4 million at the end of 2023. The company has total liquidity of approximately $2.1 billion, which includes available credit of $1.65 billion.
Production Overview by Mine
The following table summarizes production data from key mines operated by Kinross in Q2 2024:
| Mine | Gold Equivalent Production (Au eq. oz.) | Production Cost per Equivalent Ounce |
|---|---|---|
| Tasiast | 161,629 | $656 |
| Paracatu | 130,228 | $1,039 |
| Fort Knox | 69,914 | $1,345 |
| Round Mountain | 61,787 | $1,564 |
| La Coipa | 65,851 | $926 |
Development Projects and Exploration
Kinross is advancing multiple projects, including the Manh Choh project, which achieved its first gold production in July 2024. The company is also focused on exploration at Great Bear, with positive drilling results indicating high-grade mineralization.
Dividend Declaration
The Board of Directors of Kinross declared a quarterly dividend of $0.03 per common share, payable on September 6, 2024, to shareholders of record at the close of business on August 22, 2024.
How Kinross Gold Corporation (KGC) Makes Money
Revenue Generation
In Q2 2024, Kinross Gold Corporation reported revenue of $1,219.5 million, an increase from $1,092.3 million in Q2 2023. The company's year-to-date revenue for the first half of 2024 reached $2,301.0 million, compared to $2,021.6 million in the same period of the previous year.
Production Costs
The production cost of sales for Q2 2024 was $536.1 million, leading to a production cost per equivalent ounce sold of $1,029. This represents an increase from $900 in Q2 2023. The all-in sustaining cost per equivalent ounce sold was $1,387 for Q2 2024, compared to $1,296 in Q2 2023.
Gold Production
Kinross produced 535,338 gold equivalent ounces in Q2 2024, a slight decrease from 555,036 ounces in Q2 2023. The total gold equivalent ounces sold during the quarter amounted to 520,760 ounces.
Margins and Earnings
The gross margin per gold equivalent ounce sold was $1,313 in Q2 2024, up from $1,076 in Q2 2023. Reported net earnings for the quarter were $210.9 million, or $0.17 per share, compared to $151.0 million, or $0.12 per share, in Q2 2023.
Operating Cash Flow
For Q2 2024, Kinross reported operating cash flow of $604.0 million, an increase from $528.6 million in Q2 2023. Adjusted operating cash flow was $478.1 million for the quarter.
Capital Expenditures
In Q2 2024, capital expenditures totaled $274.2 million, down from $281.9 million in Q2 2023. Attributable capital expenditures were $264.5 million.
Debt and Liquidity
Kinross improved its balance sheet by repaying $200.0 million on its term loan, leading to total liquidity of approximately $2.1 billion, which includes cash and cash equivalents of $480.0 million.
Dividend Payments
The Board of Directors declared a quarterly dividend of $0.03 per common share, payable on September 6, 2024.
Production Breakdown by Mine
| Mine | Q2 2024 Production (Au eq. oz.) | Production Cost per oz ($) | Margin per oz ($) |
|---|---|---|---|
| Tasiast | 161,629 | $656 | $1,494 |
| Paracatu | 130,228 | $1,039 | $1,303 |
| La Coipa | 65,851 | $926 | $1,127 |
| Fort Knox | 69,914 | $1,345 | $1,184 |
| Round Mountain | 61,787 | $1,564 | $1,194 |
Future Growth Initiatives
Kinross is focused on advancing growth projects, such as the Manh Choh project, which is expected to contribute to production in the latter half of 2024. The company is also progressing on its exploration initiatives at Great Bear, with high-grade mineralization results.
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Updated on 16 Nov 2024
Resources:
- Kinross Gold Corporation (KGC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Kinross Gold Corporation (KGC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Kinross Gold Corporation (KGC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.