Kinross Gold Reports Q2 2022 Results: US$821.5 Million In Revenue, 453,978 Gold Equivalent Ounces Produced

Kinross Gold Corporation (TSX: K) reported on Wednesday its Q2 2022 production and financial results. The mining firm produced 453,978 gold equivalent ounces from continuing operations for the quarter, up from 413,350 ounces produced in Q1 2022 and 381,474 ounces produced in Q2 2021.

The firm also recorded the production results from the discontinued operations such as the divested Russian asset Kupol mine and the pending Chirano mine sale–adding an incremental 106,874 gold equivalent ounces for the quarter.

“With the completion of the sale of our Russian assets and pending sale of Chirano, approximately 70% of our production is now based out of the Americas. The new re-balanced portfolio is bolstered by our robust development projects, which all advanced well over the quarter,” said CEO J. Paul Rollinson.

Further, the firm sold 439,078 gold equivalent ounces during the quarter, up from last quarter’s 409,538 ounces sold and last year’s 390,230 ounces sold. This led the company to end the quarter with US$821.5 million in revenue, up from US$768.0 million last quarter and US$707.9 million last year.

The gross margin for the quarter came down to 23.2% from 26.3% last year. While the firm recorded a positive operating earnings of US$64.0 million coming from an operating loss of US$45.5 million in the previous quarter, finance expenses worth US$23.5 million and income tax expenses of US$52.7 million led the firm to record a quarterly net loss again at US$9.3 million.

If the discontinued operations will be considered, the net loss shoots up to US$39.8 million. For comparison, the firm recorded a net loss of US$523.9 million, recognizing the divestment of its Russian assets.

In terms of balance sheet, the firm ended the year with US$719.1 million in cash and cash equivalents balance. This pushes total current assets to US$2.39 billion while current liabilities ended at US$796.2 million.

While the firm is optimistic that it will meet the low end of its 2022 production guidance of 2.15 million, it is banking on a number of projects in development that are expected to widen the firm’s financials–including the Great Bear project in Red Lake and the Manh Choh project.

“The Company expects production to increase to 2.3 million Au eq. oz. (+/- 5%) in 2023, and 2024 production to be 2.1 million Au eq. oz. (+/- 5%),” the company said in a statement. The latter guidance does not include expected production from the Manh Choh project.

For the first six months of the year, the company has already produced a total of 1.07 million gold equivalent ounces.

Full details of the company’s Q2 2022 financials can be accessed here.

Kinross Gold Corporation last traded at $4.13 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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