Kinross Gold (K) Q3 2024 earnings summary

Executive summary

• Achieved record free cash flow and significant debt repayment in Q3 2024, with strong margin growth, robust production, and disciplined cost control.

• Operations at Tasiast and Paracatu delivered strong contributions; La Coipa and US operations performed on plan, with first gold from Manh Choh.

• Great Bear PEA highlights robust project economics, with potential for multi-decade mine life and over 500,000 oz/year production in the first 8 years.

• Net earnings more than tripled year-over-year to $355.3 million, with quarterly dividend of $0.03/share declared.

• On track to meet full-year production and cost guidance, with stable multi-year production outlook reaffirmed.

Financial highlights

• Q3 2024 attributable production was 585,449 Au eq. oz, up from 564,106 in Q3 2023; YTD 2024 production was 1,606,507 Au eq. oz.

• Q3 2024 cost of sales per Au eq. oz. sold was $911, down from $976 in Q3 2023; attributable all-in sustaining cost was $1,296 in Q3 2024.

• Q3 2024 operating cash flow was $733.5 million, with attributable free cash flow of $414.6 million.

• Net earnings attributable to shareholders were $355.3 million ($0.29/share), with adjusted net earnings at $298.7 million ($0.24/share).

• Cash and cash equivalents stood at $472.8 million as of September 30, 2024, with total liquidity of approximately $2.1 billion.

Outlook and guidance

• On track to meet 2024 guidance for production (2.1 million Au eq. oz. +/-5%), cost of sales, all-in sustaining cost, and capital expenditures.

• Capital expenditures for 2024 guided at $1.05 billion, with attributable capex at $772 million.

• Annual production expected to remain stable at ~2.0 million Au eq. oz. in 2025 and 2026.

• 2025 production expected to decrease by about 5%, with costs likely rising toward the higher end of a 5–10% range due to inflation and production mix.