Kinross Gold (K) Q3 2024 earnings summary

Executive summary

• Achieved strong Q3 2024 results with record free cash flow, significant margin growth, and major debt repayment, supported by robust production and cost discipline.

• Production reached 564,106 gold equivalent ounces, with operating cash flow of $733.5 million and net earnings of $355.3 million, more than tripling year-over-year.

• First gold poured at Manh Choh and robust PEA results at Great Bear, supporting future growth and multi-decade mine life potential.

• On track to meet full-year production, cost, and capital expenditure guidance, with stable multi-year production outlook.

• Quarterly dividend of $0.03/share declared, with total liquidity reaching $2.1 billion.

Financial highlights

• Revenue rose to $1,432.0 million in Q3 2024, up from $1,102.4 million in Q3 2023.

• Attributable free cash flow reached a record $414.6 million in Q3 2024, with operating cash flow of $733.5 million.

• Net earnings attributable to shareholders were $355.3 million ($0.29/share), with adjusted net earnings at $298.7 million ($0.24/share).

• Attributable all-in sustaining cost per equivalent ounce sold was $1,350 in Q3 2024, up from $1,296 in Q3 2023.

• Average realized gold price was $2,477/oz in Q3 2024, up from $1,929/oz in Q3 2023.

Outlook and guidance

• On track to meet 2024 guidance for production (2.1 million Au eq. oz. +/-5%), cost of sales, all-in sustaining cost, and capital expenditures.

• Annual production expected to remain stable at approximately 2.0 million gold equivalent ounces in 2025 and 2026.

• 2024 capital expenditures guided at $1,050 million, with attributable capex at $772 million.

• 2025 production expected to decrease by ~5%, with costs likely rising toward the higher end of a 5%-10% range due to inflation and production mix.