Kinross Gold (K) Q3 2024 earnings summary

Executive summary

• Achieved record free cash flow and significant debt repayment in Q3 2024, with strong margin growth and disciplined cost control.

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

• Operations at Tasiast and Paracatu delivered strong contributions; La Coipa and US operations performed on plan, with first gold poured at Manh Choh.

• Great Bear PEA highlights robust project economics, with potential for multi-decade mine life and over 500,000 oz/year at ~$800/oz AISC for the first 8 years.

• On track to meet annual guidance for production, costs, and capital expenditures, with quarterly dividend of $0.03/share declared.

Financial highlights

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

• Operating cash flow was $733.5 million, and attributable free cash flow reached a record $414.6 million.

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

• Production cost of sales per equivalent ounce sold: $976 (Q3 2024) vs. $911 (Q3 2023); attributable all-in sustaining cost per equivalent ounce sold: $1,350 (Q3 2024) vs. $1,296 (Q3 2023).

• Cash and cash equivalents stood at $472.8 million as of September 30, 2024, with total liquidity of approximately $2.1 billion.

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 ~2.0 million Au eq. oz. in 2025 and 2026.

• 2024 attributable production cost of sales guidance is $1,020/oz; all-in sustaining cost guidance is $1,360/oz.

• Capital expenditures for 2024 guided at $1,050M, with attributable capex at $772M.

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