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Kinross Gold Corp KGC

Morningstar Rating
$4.78 −0.08 (1.65%)
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Company Report

Kinross Gold Earnings: Higher Volumes and Prices Drive a Strong Result

No-moat Kinross Gold’s 2023 result was better than we expected. Adjusted EBITDA of roughly USD 1.8 billion was 46% up on 2022 and 7% higher than our forecast. Both gold equivalent ounces, or GEO, sales volumes and prices contributed. Adjusted net profit after tax of USD 540 million, or USD 0.44 (CAD 0.59) per share, roughly doubled, with free cash flow of USD 560 million more than twice that earned in 2022. Strong earnings allowed Kinross to materially improve its net debt position, with net debt now around 1 time trailing 12 months EBITDA, down from roughly 1.7 times. Consistent with its quarterly dividend policy, Kinross will pay a USD 0.03 (roughly CAD 0.04) dividend, the same as last year, in March.

Price vs Fair Value

KGC is trading at a 13% discount.
Price
$4.78
Fair Value
$7.60
Uncertainty
High
1-Star Price
$5.62
5-Star Price
$1.70
Economic Moat
Qwcw
Capital Allocation
Ldxm

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
$4.86
Day Range
$4.754.85
52-Week Range
$3.406.34
Bid/Ask
$4.85 / $4.86
Market Cap
$5.87 Bil
Volume/Avg
22,266 / 12.8 Mil

Key Statistics

Price/Earnings (Normalized)
11.26
Price/Sales
1.39
Dividend Yield (Trailing)
2.51%
Dividend Yield (Forward)
2.51%
Total Yield
2.51%

Company Profile

Kinross Gold is a Canada-based gold producer, producing roughly 2.2 million gold equivalent ounces in 2023. The company had about a decade of gold reserves at the end of 2023. 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)
11.2619.5222.92
Price/Book Value
0.961.191.24
Price/Sales
1.392.133.55
Price/Cash Flow
4.007.698.56
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%3.66%
Return on Equity (Normalized)
8.48%6.21%5.43%
Return on Invested Capital (Normalized)
6.14%4.92%5.21%
Return on Assets
KGC
NEM
AEM
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Gold Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ZIJMY
Zijin Mining Group Co Ltd ADRGjjnmg$46.5 Bil
ZIJMF
Zijin Mining Group Co Ltd Class HBwmnd$46.5 Bil
NEM
Newmont CorpKtfl$34.4 Bil
GOLD
Barrick Gold CorpHnsys$25.2 Bil
AEM
Agnico Eagle Mines LtdYztxt$23.9 Bil
FNV
Franco-Nevada CorpZhcl$20.2 Bil
WPM
Wheaton Precious Metals CorpZhdtpg$18.1 Bil
GFI
Gold Fields Ltd ADRWdsxswz$11.2 Bil
GFIOF
Gold Fields LtdSmhkvz$11.2 Bil

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