Kinross Gold (K) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with robust operating margins, significant free cash flow, and a $200 million debt repayment, with production reaching 535,338 gold equivalent ounces and key mines Tasiast, Paracatu, and La Coipa contributing 67% of output.

• Major development milestones included the first gold pour at Manh Choh, significant exploration success at Great Bear, Round Mountain, and Curlew, and continued progress at Round Mountain Phase X.

• Guidance for 2024 production, costs, and capital expenditures reaffirmed, with a strong balance sheet and $2.1 billion in liquidity.

• Sustainability initiatives advanced, including a 23% renewable energy share and progress toward a 30% reduction in Scope 1 and 2 emission intensity by 2030.

• Quarterly dividend of $0.03 per share declared.

Financial highlights

• Q2 2024 production was 535,338 Au eq. oz, with cost of sales per Au eq. oz sold at $1,029 and all-in sustaining cost at $1,387.

• Revenue rose to $1,219.5 million, up from $1,092.3 million in Q2 2023; net earnings increased 40% year-over-year to $210.9 million ($0.17/share), and adjusted net earnings were $174.7 million ($0.14/share).

• Operating cash flow was $604 million, adjusted operating cash flow $478.1 million, and attributable free cash flow $345.9 million.

• Average realized gold price was $2,342/oz, up 19% year-over-year, resulting in a margin per Au eq. oz sold of $1,313.

• Attributable capital expenditures were $264.5 million, down from $272.3 million year-over-year.

Outlook and guidance

• On track to meet 2024 annual guidance: attributable production of 2.1 million Au eq. oz, production cost of sales of $1,020/oz, and all-in sustaining cost of $1,360/oz.

• 2025 and 2026 production expected at 2.0 million Au eq. oz annually, with capital expenditures declining from $1,050 million in 2024 to $650 million in 2026.

• Production profile expected to remain steady, with plans to sustain 2 million ounces through the decade.

• Great Bear PEA expected in September 2024; Manh Choh project on schedule for planned production.