Canada's Kinross Gold Q2 revenue, profit benefit from higher prices
Canada's Kinross Gold Q2 revenue, profit benefit from higher prices
Overview
Canada gold miner's Q2 revenue rose 29% yr/yr, driven by higher realized gold prices
Adjusted EPS for Q2 increased to $0.71 from $0.44 a year earlier
Company returned over $275 mln to shareholders in Q2 via buybacks and dividends
Outlook
Kinross expects 2026 attributable production of 2.0 mln Au eq. oz. (+/- 5%)
Company forecasts 2026 production cost of sales of $1,360/oz (+/- 5%) and AISC of $1,730/oz (+/- 5%)
Kinross projects 2026 attributable capital expenditures of $1,500 mln (+/- 5%)
Result Drivers
HIGHER GOLD PRICES - Revenue and margins rose mainly due to a 37% increase in average realized gold price yr/yr
COST PRESSURES - Production cost of sales per ounce increased, mainly due to higher fuel, royalty, and labor costs
MIXED MINE PERFORMANCE - Higher output at Tasiast and Paracatu offset lower production at Bald Mountain, Round Mountain and Fort Knox
Company press release: ID:nGNX2Nx9d5
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Metal Sales |
| $2.24 bln |
|
Q2 EPS |
| $0.71 |
|
Q2 Adjusted Net Income |
| $847.80 mln |
|
Q2 Attributable Free Cash Flow |
| $726.8 mln |
|
Q2 Capex |
| $411 mln |
|
Q2 Free Cash Flow |
| $726.80 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the gold peer group is "buy"
Wall Street's median 12-month price target for Kinross Gold Corp is C$57.00, about 71.6% above its July 28 closing price of C$33.21
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
July 29 - Canada's Aris Mining Q2 gold revenue rose; co invests in capital projects at Marmato and Segovia
July 29 - Allied Gold's $4 billion sale to China's Zijin collapses, lands $295 million investment
July 28 - Rio Tinto half-year adjusted net income beats estimates on higher gold prices and productivity improvements
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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