Kinross Gold (K) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2 2024 results with robust operating margins, significant free cash flow, and a $200 million debt repayment, supported by production of 535,338 gold equivalent ounces and reaffirmed 2024 guidance.

• Major development milestones included the first gold pour at Manh Choh in July 2024 and significant progress at Great Bear, Round Mountain, and Curlew, with high-grade exploration results.

• Tasiast, Paracatu, and La Coipa contributed 67% of output, with Tasiast being the highest-margin mine and US operations performing as planned.

• Sustainability initiatives advanced, including a 23% renewable energy share, a 30% emission intensity reduction target by 2030, and the release of the 2023 Climate Report.

• Quarterly dividend of $0.03 per share declared, with a strong balance sheet and $2.1 billion in liquidity.

Financial highlights

• Q2 2024 revenue was $1,219.5 million, up from $1,092.3 million in Q2 2023; net earnings rose 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.

• Production cost of sales per Au eq. oz. sold was $1,029, and all-in sustaining cost was $1,387; average realized gold price was $2,342/oz.

• Margin per gold equivalent ounce sold increased 22% year-over-year to $1,313.

• Capital expenditures in Q2 2024 were $264.5 million, down from $272.3 million year-over-year.

Outlook and guidance

• On track to meet 2024 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.

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

• Production and cost guidance reaffirmed for all major operations, with steady performance expected.