Kinross Gold Corporation
KGC
recently announced that its La Coipa Project in Chile has poured its first gold bar. In early February this year, the project had begun commissioning at its plant, on schedule and within budget. It is expected to ramp up in the coming months to achieve full operating capacity by mid-year.
Kinross raised the expected life of La Coipa by 45% to roughly 1 million gold equivalent ounces at the end of 2021. This was done by optimizing the Phase 7 mine plan and involving the nearby Puren pit in the project.
The company intends to evaluate opportunities to further expand La Coipa’s mine plan, like a possible additional Puren pushback and incorporating other nearby pits into the project.
Kinross also signed a power purchase agreement in late 2021 to supply La Coipa with 100% renewable power for its power needs, aligned with the company’s greenhouse gas emissions reduction strategy.
Shares of KGC have declined 18.2% in the past year against a 16.9% increase of the
industry
.
Image Source: Zacks Investment Research
The company’s attributable gold equivalent ounces produced in the fourth quarter totaled 487,621 ounces, down 21.9% year over year. The downside was primarily due to lower production at Tasiast and Round Mountain.
The company, in its fourth-quarter call, stated that it expects to produce 2.65 million (+/- 5%) gold equivalent ounces for 2022. KGC anticipates production cost of sales of $830 per gold equivalent ounce.
All-in sustaining cost per ounce for 2022 is projected at $1,130. Capital expenditures are predicted at around $1,050 million (+/- 5%) for this year.
In 2023 and 2024, the company expects capital expenditures to be $1 billion, in line with 2022 levels.
Kinross Gold Corporation Price and Consensus
Kinross Gold Corporation price-consensus-chart
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Kinross Gold Corporation Quote
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are
The Mosaic Company
MOS
,
AdvanSix Inc.
ASIX
and
Allegheny Technologies
Incorporated
ATI
.
Mosaic has a projected earnings growth rate of 106.4% for the current year. The Zacks Consensus Estimate for MOS’ current-year earnings has been revised 22.2% upward in the past 60 days.
Mosaic beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 80.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 20.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 15.7% upward in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters, the average being 23.6%. ASIX has surged 65.7% in a year. The company carries a Zacks Rank #2 (Buy).
Allegheny, currently carrying a Zacks Rank #2, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI’s earnings for the current year has been revised 45.6% upward in the past 60 days.
Allegheny beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 23.7% over a year.
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