Kinross Gold Corporation (TSX:K) posted a strong financial quarter for Q3 2024, reporting $1.43 billion in revenue, buoyed by higher gold prices.
The company outperformed expectations on production and cash costs, supported by strong output at key mines, including Paracatu and Fort Knox.
Adjusted EBITDA of $770 million and adjusted EPS of $0.24 also exceeded projections, with EPS benefiting from a $74 million impairment reversal due to increased gold price forecasts.
Kinross remains on track to meet its 2024 guidance, expecting full-year production of 2.1 million gold equivalent ounces (GEO) at a cost of sales around $1,020/GEO and AISC of $1,360/GEO.
The Toronto-based miner attributed the boost in revenue to solid operational results at its Tasiast, Fort Knox, and Paracatu mines, generating record free cash flow of $414.6 million.
While the company’s gross margin surged to 45.1% from 28.8% a year earlier, concerns linger as Kinross saw a slight drop in production levels and rising costs in Q3. Despite a 28% increase in the average realized gold price, Kinross managed to boost its margin per gold equivalent ounce by 47% to $1,501, marking a sharp gain over the prior-year quarter margin of $1,018.
On the balance sheet, total assets edged up to $10.76 billion, while liabilities declined to $3.97 billion, contributing to an equity growth to $6.79 billion.
The company reaffirmed its production guidance of 2.1 million gold equivalent ounces for 2024 and expects stable production levels of approximately 2 million ounces for 2025 and 2026. Kinross is also advancing development of the Great Bear project in Ontario, with plans to expand production capabilities as permitting progresses.
Shares of Kinross were down around 1.4% on Wednesday morning in New York and Toronto.