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Monday, Dec 4, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Kinross Gold reports 66% earnings surge to $110M amidst robust production performance

The company remains well-positioned to meet its annual guidance

Kinross Gold Q3 earnings up 66%
La Coipa project in Peru. Photo via Kinross Gold.

Kinross Gold Corporation (TSX: K) (NYSE: KGC) increased its net earnings by 66 per cent and its year-over-year production by 11 per cent because of high mill grades, recovery and strong output at three projects.

On Wednesday, the leading Canadian miner announced its financial results for the third quarter ended Sept. 30 this year. The company reported net earnings of US$109.7 million, which is a 66 per cent increase from US$65.9 million in the same quarter last year.

During the quarter, the company produced 585,449 gold equivalent ounces from 529,155 ounces in the previous quarter. Production was mainly driven by Brazilian projects with higher mill grades, recovery and throughput at the Tasiast projects and higher production at La Coipa and Paracatu projects.

The company reported a 29 per cent increase in year-over-year revenue to US$1.1 billion from US$856.5 million in 2022. It reported an operating cash flow of US$406.8 million and an adjusted operating cash flow of US$470.6 million. Free cash flow reached US$122.9 million during the third quarter.

Its production cost of sales was US$911 per gold equivalent ounces sold from US$941 in the last quarter. The cost decreased mainly because of its production ramp-up at the La Coipa project in Peru.

Reported net earnings are US$109.7 million, or US$0.09 per share, while adjusted net earnings reached US$144.6 million, or US$0.12 per share. Kinross maintains a strong financial position with cash and cash equivalents of US$464.9 million and total liquidity of approximately US$2.0 billion.

During the third quarter, capital expenditures from continuing operations rose to $283.9 million, increasing year-to-year from US$197.3 million. This upturn is chiefly attributed to heightened capital stripping at Tasiast and Fort Knox and intensified development activities at Manh Choh.

Read more: Kinross Gold to invest $10M for 70% stake in Aurion Resource’s Launi East

Read more: Kinross targets emissions cuts, net zero goals in updated ESG strategy

Kinross CEO J. Paul Rollinson said the company continues to reduce the debt on its investment grade balance sheet and remains well-positioned to meet the annual guidance. He highlighted that its Great Bear project made excellent progress as permitting advanced well, and drill results continue to exceed expectations.

“Kinross is delivering on its ESG commitments. In that regard, we’re excited that our 34MW solar power plant at Tasiast is on schedule to deliver power by the end of the year,” CEO J. Paul Rollinson said.

“This, combined with other elements of our climate strategy, means Kinross is well on track to meet our goal of a 30 per cent. reduction in greenhouse gas emissions by 2030.”

Kinross is a senior gold mining company with operations and projects in Canada, United States, Brazil, Mauritania and Chile.

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