Kinross Gold (TSX:K) Corporation KGC is scheduled to release third-quarter 2024 results after the closing bell on Nov. 5.
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The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of roughly 29.2%, on average. KGC posted an earnings surprise of roughly 7.7% in the last reported quarter.
KGC’s shares are up 90.2% over a year compared with the Zacks Mining – Gold industry’s 46.9% rise.
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Let’s see how things are shaping up for this announcement.
What Our Model Unveils for KGC Stock
Our proven model predicts an earnings beat for Kinross this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earning beat.
Earnings ESP: Earnings ESP for KGC is +8.24%. The Zacks Consensus Estimate for the third quarter is currently pegged at 17 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: KGC currently carries a Zacks Rank #2.
What do KGC’s Revenue Estimates Say?
The Zacks Consensus Estimate for revenues for the third quarter for KGC is currently pinned at $1,186.7 million, suggesting an expected year-over-year rise of 7.7%.
Factors to Watch For KGC Stock
The impact of higher gold prices is expected to reflect on KGC’s results in the to-be-reported quarter. Higher realized gold prices are expected to have driven its top line.
Gold prices are hitting record highs this year, and the yellow metal has been among the best-performing assets. The recent rally in gold prices has been supported by the 50-basis-point cut in interest rates by the U.S. Federal Reserve, growing expectations of another rate reduction in November, uncertainties over the U.S. presidential election and increased tensions in the Middle East, which fueled safe-haven demand.
Prices of the yellow metal racked up a roughly 4% gain for the third quarter of 2024 and are up roughly 33% this year.
Tasiast and Paracatu, the company’s two biggest assets, remain key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio with consistently strong performance while Paracatu continues to deliver steady production, which is expected to have continued in the third quarter. Our estimate for third-quarter consolidated production is 528,770 gold equivalent ounces.
Kinross, like most miners, is plagued by higher production costs. In the second quarter of 2024, its production cost of sales per gold equivalent ounce was up roughly 14% from the previous year. All-in-sustaining costs (AISC) — the most important cost metric of miners — also rose around 7% year over year. While KGC is taking actions to control costs, the inflationary pressure is likely to have continued in the September quarter, impacting its performance. Our estimate for third-quarter AISC per gold equivalent ounce sold is $1,372, reflecting a 5.9% year-over-year increase.
Kinross Gold Corporation Stock Price and EPS Surprise
Kinross Gold Corporation price-eps-surprise | Kinross Gold Corporation Quote
Basic Materials Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they too have the right combination of elements to post an earnings beat this quarter:
DuPont (NYSE:DD) de Nemours, Inc. DD, scheduled to release third-quarter earnings on Nov. 5, has an Earnings ESP of +1.00%.
The Zacks Consensus Estimate for DuPont's earnings for the third quarter is currently pegged at $1.03. DD currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Methanex Corporation (TSX:MX) MEOH, scheduled to release earnings on Nov. 6, has an Earnings ESP of +53.67% and carries a Zacks Rank #3.
The consensus estimate for MEOH’s earnings for the third quarter is currently pegged at 44 cents.
Air Products and Chemicals (NYSE:APD), Inc. APD, slated to release earnings on Nov. 7, has an Earnings ESP of +1.63% and carries a Zacks Rank #3 at present.
The consensus mark for APD’s fiscal fourth-quarter earnings is currently pegged at $3.44.
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