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Kinross Gold Reported a Solid Earnings Beat in 1Q18



Kinross Gold’s 1Q18 earnings beat

Kinross Gold (KGC) released its 1Q18 results after the market closed on May 8. The company reported EPS (earnings per share) of $0.10, which was double the consensus estimate of $0.05. Its revenue of $897 million also came in above the market’s expectation of $833 million.

Kinross’s headline profit climbed 435% YoY (year-over-year) mainly due to higher margins and a decline in depreciation, depletion, and amortization. KGC maintained its full-year production and cost guidance.

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Peers’ results

Most of Kinross’s peers have already reported their 1Q18 results. Barrick Gold (ABX) was the first to report on April 23. It reported EPS of $0.15, which represented a beat of $0.01 on consensus expectations. Goldcorp (GG) reported next on April 25. Its EPS came in at $0.08, missing the consensus by $0.03 and coming in significantly lower than the $0.20 it reported in 1Q17.

Newmont Mining (NEM) reported on April 26. After beating earnings estimates in each quarter of 2017, Newmont reported another beat in 1Q18. Its EPS of $0.35 were slightly higher than analysts’ consensus estimate of $0.33. Yamana Gold (AUY) missed analysts’ consensus EPS estimate of $0.02, reporting adjusted EPS of $0.01.

Positive stock momentum

Kinross stock closed with a rise of 2.2% on May 8 and rose another 3.2% in after-hours trading on its strong quarterly results. While the stock showed positive momentum after its 1Q18 results, its YTD (year-to-date) performance hasn’t been that impressive.

As of May 8, KGC has fallen 4.6% YTD compared to the fall of 2.5% in the VanEck Vectors Gold Miners ETF (GDX). Among its close peers, Goldcorp and Newmont Mining have given returns of 5.5% and 5.7%, respectively. Barrick Gold (ABX), on the other hand, has returned -6.9% in the same period.

Series overview

In this series, we’ll look at Kinross Gold’s 1Q18 results. We’ll also look at its production and cost performances. Plus, we’ll look at recent developments in some of its projects, especially the recently approved Tasiast Phase Two and Round Mountain Phase W expansions.


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