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Can Kinross Gold Stock Rise above Its Issues in 2019?

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Kinross Gold’s earnings performance

Kinross Gold (KGC) released its fourth-quarter earnings results after the market closed on February 13 and held its conference call on February 14.

The company reported adjusted EPS of $0.01, beating analysts’ consensus estimate by $0.01. Its revenue of $786 million also beat analysts’ expectation by 3.3%.

Kinross met its production and cost guidance for 2018. It reported production of 2.45 million tons, which was in line with its guidance of 2.5 million tons plus or minus 5%. The company has guided for flat production growth for 2019.

KGC’s all-in sustaining costs came in at $965 per ounce in 2018, which was also in line with a 5% plus or minus variance from $975 per ounce. The company has guided for $995 per ounce of all-in sustaining costs in 2019.

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KGC’s CEO on its results

KGC’s CEO, Paul Rollinson, said in the company’s press release, “We expect to deliver another strong year in 2019, producing approximately 2.5 million gold equivalent ounces at costs similar to 2018. Our development projects are proceeding well, and we look forward to a number of milestones this year.”

Peers’ results

Among Kinross’s peers (GDX)Barrick Gold (GOLD) reported mixed operating results with adjusted EPS of $0.06 in the fourth quarter, higher than the consensus estimate of $0.05. It missed analysts’ top line estimate by ~$60 million, however, and reported revenue of $1.9 billion. Goldcorp (GG) reported adjusted EPS of $0.07, which beat the consensus estimate by $0.04. Its revenue of $772.0 million missed analysts’ estimate by ~7.4%.

Newmont Mining (NEM) beat analysts’ consensus estimate of $0.16 with EPS of $0.40. The company’s revenue of $2.05 billion also beat the consensus estimate by 9.0%.

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