Kinross Gold reports surprise 4Q profit and higher-than-expected revenue

Kinross Gold Corporation (NYSE:KGC) (TSE:K) reported an unexpected profit during the fourth quarter and said it met production and cost guidance for a seventh straight year.

For the three months ended December 31, the miner posted revenue from metal sales of US$786.5 million in the fourth quarter of 2018, compared with US$810.3 million a year earlier. The average forecast of analysts was US$757.4 million.

READ: Kinross Gold sees profit decline in first quarter

The Toronto-based company reported fourth-quarter adjusted net earnings of US$13.5 million, or US$0.01 per share, compared with US$16.3 million, or $0.01 per share a year earlier. The Wall Street consensus was for zero earnings on a per share basis.

The company produced 610,152 gold equivalent ounces in the fourth quarter and 2,452,398 gold equivalent ounces in 2018. 

“Kinross once again delivered on its commitments in 2018, as we met our production, cost and capital guidance for the seventh consecutive year,” CEO J. Paul Rollinson said in a statement.  “Our portfolio of mines produced solid results,” he added, citing record annual production at Paracatu and Bald Mountain.

He said Kinross generated $790 million in operating cash flow and had $1.9 billion in liquidity and no debt maturing until 2021.

Shares fell 0.3% to US$3.21 at the close of New York trading Wednesday, before Kinross reported its earnings. The stock ended the day unchanged at C$4.26 in Canada.

Contact Dennis Fitzgerald at [email protected]

Story by ProactiveInvestors