Kinross Gold Swings to Loss in Q4; Shares Dip

Kinross Gold (TSE: K) (NYSE: KGC) swung to a loss in the fourth quarter as it was hampered by downtime in some of its operations.

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Kinross Gold is a Canadian mining company, specializing in the exploitation of gold and silver deposits.

Revenue & Earnings

Revenue came in at $879.5 million in Q4 2021, down from $1.2 billion during Q4 2020.

Kinross reported a net loss of $2.7 million in the quarter, compared with net earnings of $783.3 million ($0.62 per share) in the prior-year quarter.

The Toronto-based mining company attributes the loss mainly to the temporary suspension of milling operations after a fire at its Tasiast mine in Mauritania, as well as the postponement of mining activity at Round Mountain in Nevada.

On an adjusted basis, Kinross earned $101.8 million ($0.08 per share) in the three months ending December 31, compared with adjusted earnings of $335.1 million (0.27 per share) a year earlier.

Analysts expected adjusted EPS of $0.06 on $903.5 million in revenues.

CEO Commentary

Kinross president and CEO J. Paul Rollinson said, “Despite some challenges during 2021, we produced approximately 2.1 million ounces. We expect to increase our production in 2022 and 2023 to 2.65 million and 2.8 million ounces, respectively, to drive robust free cash flow. Our long-term production profile remains strong, with expected production of 2.6 million ounces in 2024 and an annual average production estimate of at least 2.5 million ounces over the remainder of the decade. “

Wall Street’s Take

Following the results, BMO Capital analyst Jackie Przybylowski kept a Buy rating on K and lowered its price target to $11 (C$13.96). This implies 91.8% upside potential.

Overall, Kinross scores a Strong Buy consensus rating among analysts based on eight Buys and one Hold. The average Kinross Gold price target of C$10.98 implies 50.8% upside potential to current levels.

TipRanks’ Smart Score

Kinross scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that its stock has a very good chance of beating the overall market.

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