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Kinross Gold Corp KGC

Morningstar Rating
$5.79 −0.09 (1.53%)
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Company Report

Kinross Gold Earnings: Strong Period Driven by Higher Gold Sales Volumes and Prices

No-moat Kinross Gold’s 2023 third-quarter result was better than our expectations. Higher gold sales volumes and prices along with lower unit cash costs drove a 66% increase in EBITDA, to USD 490 million, compared with the same quarter of 2022. Adjusted net profit after tax of USD 145 million, or USD 0.12 (CAD 0.167) per share, more than doubled. Kinross will pay a USD 0.03 (roughly CAD 0.042) dividend in December, the same as last year and in line with its quarterly dividend policy. We forecast total 2023 dividends of USD 0.12 (CAD 0.167) per share for a 2.2% forward yield at current share prices.

Price vs Fair Value

KGC is trading at a 8% premium.
Price
$5.79
Fair Value
$1.45
Uncertainty
High
1-Star Price
$3.58
5-Star Price
$3.33
Economic Moat
Yxtl
Capital Allocation
Vzyq

Bulls Say, Bears Say

Bulls

Tasiast and Paracatu, Kinross' two largest operations by production, sit within the lower half of the industry cost curve.

Bears

Kinross sits around the middle of the gold cost curve, making it more leveraged to movements in gold prices compared with its lower-cost competitors.

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News

Trading Information

Previous Close Price
$5.88
Day Range
$5.745.85
52-Week Range
$3.405.98
Bid/Ask
$5.75 / $5.83
Market Cap
$7.11 Bil
Volume/Avg
1,465 / 12.6 Mil

Key Statistics

Price/Earnings (Normalized)
13.63
Price/Sales
1.72
Dividend Yield
2.07%
Dividend Yield (Forward)
2.07%
Total Yield
5.45%

Company Profile

Kinross Gold is a Canada-based gold producer, producing roughly 2 million gold equivalent ounces in 2022. The company had about a decade of gold reserves at the end of 2022. It operates mines in the Americas and West Africa after selling its low-cost Russian operations in 2022 in response to the invasion of Ukraine. The company has historically used acquisitions to fuel expansion into new regions and production growth. In 2022, Kinross purchased the Great Bear project in Canada, which, if developed, could produce an average of more than 500,000 ounces of gold per year for at least a decade.
Sector
Basic Materials
Industry
Gold
Stock Style Box
Mid Core
Total Number of Employees
6,400

Competitors

Valuation

Metric
KGC
NEM
AEM
Price/Earnings (Normalized)
13.6326.0725.25
Price/Book Value
1.171.661.33
Price/Sales
1.722.874.05
Price/Cash Flow
4.589.0210.32
Price/Earnings
KGC
NEM
AEM

Financial Strength

Metric
KGC
NEM
AEM
Quick Ratio
0.771.170.50
Current Ratio
2.702.121.99
Interest Coverage
6.69−1.1232.41
Quick Ratio
KGC
NEM
AEM

Profitability

Metric
KGC
NEM
AEM
Return on Assets (Normalized)
4.83%3.17%3.52%
Return on Equity (Normalized)
8.48%6.21%5.22%
Return on Invested Capital (Normalized)
6.14%4.92%5.02%
Return on Assets
KGC
NEM
AEM

Gold Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
NEM
Newmont CorpTvr$46.0 Bil
ZIJMY
Zijin Mining Group Co Ltd ADRLhwvhb$43.6 Bil
ZIJMF
Zijin Mining Group Co Ltd Class HDfzgvp$43.6 Bil
GOLD
Barrick Gold CorpCplym$30.6 Bil
AEM
Agnico Eagle Mines LtdXtf$26.2 Bil
WPM
Wheaton Precious Metals CorpPkd$21.8 Bil
FNV
Franco-Nevada CorpTttxp$20.6 Bil
GFI
Gold Fields Ltd ADRHlpyg$13.2 Bil
GFIOF
Gold Fields LtdKvqrzq$13.2 Bil