Kinross Gold (K) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong operational and financial results, with production of 512,088 ounces, robust cash flow, and increased return of capital initiatives, continuing momentum from 2024.

• Free cash flow more than doubled year-over-year to $370.8 million, and net earnings attributable to shareholders rose to $368.0 million ($0.30/share), more than tripling year-over-year.

• Margins per gold equivalent ounce sold increased by 67% to $1,814, outpacing the 38% rise in average realized gold price.

• Tasiast and Paracatu mines contributed over half of total production, with La Coipa and US operations performing on plan.

• The company remains on track to meet full-year production, cost, and capital guidance, with enhanced shareholder returns through dividends and a reactivated share buyback program.

Financial highlights

• Produced 512,088 gold equivalent ounces and sold 506,000 ounces in Q1; revenue rose 38% year-over-year to $1,497.5 million, driven by a higher average realized gold price of $2,857/oz.

• Q1 cost of sales was $1,038/oz and all-in sustaining cost (AISC) was $1,355/oz, both below annual guidance and lower than the prior quarter.

• Adjusted earnings were $0.30/share; adjusted operating cash flow was $676 million, up from $426 million year-over-year.

• Attributable CapEx was $204 million; free cash flow was $371 million ($472 million excluding working capital changes).

• Ended Q1 with $695 million in cash and $2.3 billion in total liquidity; net debt improved to $540 million after repaying the remaining $200 million term loan.

Outlook and guidance

• On track to produce 2 million ounces in 2025 at a cost of sales of $1,120/oz and AISC of $1,500/oz; similar guidance for 2026 and 2027.

• Capital expenditures expected to meet $1.15 billion guidance for 2025-2027.

• Share buybacks targeted at a minimum of $500 million for 2025, assuming current gold prices and operational performance.

• Expectation to be in a net cash position by year-end at current gold prices.

• Moody’s upgraded outlook to positive, affirming investment grade rating Baa3.