What Caused Kinross’s Stock to Surge after Its 1Q17 Results?
Kinross’s 1Q17 earnings beat
Kinross Gold (KGC) reported its 1Q17 results on May 2, 2017, after the market closed, and held the conference call with the analysts the next day. KGC beat earnings expectations by reporting adjusted EPS (earnings per share) of $0.02, as compared to the analyst consensus of $0.01. Its revenues also beat market expectations by 2%, coming in at $796 million.
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KGC’s stock surged post 1Q17
Kinross Gold’s stock surged by more than 10% on May 3, 2017. This is a huge outperformance, given that the VanEck Vectors Gold Miners ETF (GDX) fell 1.1% on the same day. Among peers, Barrick Gold (ABX) reported a 1Q17 miss, while Newmont Mining’s (NEM) results were a beat, and Goldcorp’s (GG) stock fell even after reporting a beat.
In this series, we’ll be looking at Kinross Gold’s recent results. We’ll also analyze the company’s developments in its Tasiast and Bald Mountain mines. We’ll discuss how Kinross management is trying to position the company in 2017 and beyond within the context of this volatile gold price environment, and then we’ll look at some key takeaways from the earnings question-and-answer session.
You can access the gold industry through gold-backed ETFs such as the SPDR Gold Shares (GLD) and the VanEck Vectors Gold Miners ETF (GDX). Newmont Mining (NEM), Barrick Gold (ABX), and Goldcorp (GG) together make up 20.2% of GDX’s holdings.
Continue to the next part for a discussion of Kinross’s production growth.