Kinross Gold (K) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong operating margins, robust free cash flow, and a $200 million debt repayment, with production of 535,338 ounces and major assets Tasiast and Paracatu showing improved performance.

• First gold pour at Manh Choh, with significant exploration success at Great Bear, Round Mountain, and Curlew, supporting future growth.

• Guidance for 2024 production, costs, and capex reaffirmed, with a strong balance sheet and $2.1 billion liquidity.

• Sustainability initiatives advanced, including a 23% renewable energy share and progress toward a 30% reduction in Scope 1 and 2 emission intensity by 2030.

• Quarterly dividend of $0.03 per share declared.

Financial highlights

• Q2 2024 production was 535,338 Au eq. oz, cost of sales $1,029/oz, and all-in sustaining cost $1,387/oz; average realized gold price was $2,342/oz, with margins over $1,300/oz.

• Q2 2024 operating cash flow was $604 million, adjusted operating cash flow $478 million, and attributable free cash flow $346 million.

• Q2 2024 net earnings were $210.9 million ($0.17/share); adjusted EPS was $0.14.

• Capital expenditures in Q2 2024 were $264.5 million.

• Net debt to EBITDA improved to just under 0.8x, with total liquidity at $2.1 billion and $480 million in cash.

Outlook and guidance

• On track to meet 2024 guidance: 2.1 million ounces at a cost of sales of $1,020/oz and AISC of $1,360/oz.

• 2025 and 2026 production expected at 2.0 million ounces annually, with capital expenditures declining from $1.05 billion in 2024 to $650 million in 2026.

• Production profile expected to remain steady, with plans to sustain 2 million ounces through the decade.

• Manh Choh project expected to deliver planned production in 2024; Great Bear PEA to be released in September.