• Q4 Production: 501,000 ounces.
• Full Year Production: 2.13 million ounces.
• Q4 Sales: 518,000 ounces.
• Q4 Cost of Sales: $1,096 per ounce.
• Q4 All-in Sustaining Costs (AISC): $1,510 per ounce.
• Full Year Cost of Sales: $1,021 per ounce.
• Full Year AISC: $1,388 per ounce.
• Q4 Operating Margin: $1,567 per ounce sold.
• Full Year Operating Margin: $1,372 per ounce.
• Q4 Adjusted Earnings: $0.20 per share.
• Full Year Adjusted Earnings: $0.68 per share.
• Q4 Adjusted Operating Cash Flow: $640 million.
• Full Year Adjusted Operating Cash Flow: $2.1 billion.
• Q4 Attributable CapEx: $279 million.
• Full Year Attributable CapEx: $1.05 billion.
• Q4 Attributable Free Cash Flow: $434 million.
• Full Year Attributable Free Cash Flow: $1.34 billion.
• Cash and Total Liquidity: $612 million in cash and $2.3 billion total liquidity.
• Net Debt Reduction: Reduced by approximately $1.4 billion over 24 months.
• Net Debt to EBITDA: Reduced from 1.7x to 0.3x as of year-end.
• 2025 Production Guidance: 2 million ounces.
• 2025 Cost of Sales Guidance: $1,120 per ounce.
• 2025 AISC Guidance: $1,500 per ounce.
• 2025 CapEx Guidance: $1.15 billion.

• Warning! GuruFocus has detected 8 Warning Signs with KGC.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kinross Gold Corp (NYSE:KGC) delivered a strong fourth quarter, producing over 500,000 ounces and achieving full-year production of 2.13 million ounces, in line with guidance.
• The company generated record free cash flow of $1.34 billion for the full year, more than doubling from the previous year.
• Kinross Gold Corp (NYSE:KGC) successfully repaid its $1 billion term loan, significantly reducing its net debt by approximately $1.4 billion over the last 24 months.
• The Great Bear project reached an important milestone with the release of the Preliminary Economic Assessment (PEA), confirming its top-tier potential with an estimated average annual production of 500,000 ounces at an all-in sustaining cost of $800 per ounce.
• Kinross Gold Corp (NYSE:KGC) demonstrated a strong commitment to sustainability, completing over 15 energy efficiency projects and receiving a Sustainability Award from the Canadian Council for the Americas.

Negative Points

• Cost of sales and all-in sustaining costs increased by approximately 10% compared to the previous year, driven by structural changes in the portfolio and modest cost inflation.
• Production from Tasiast is expected to be lower in 2025 due to mine plan sequencing and lower grades, impacting overall production costs.
• The company faces ongoing permitting challenges, particularly with the Great Bear project, which could impact future production timelines.
• Kinross Gold Corp (NYSE:KGC) anticipates a cash outflow in the first quarter of 2025 due to tax payments and interest obligations, affecting short-term liquidity.
• Despite strong cash flow generation, the company remains cautious about initiating share buybacks, balancing this with maintaining a strong balance sheet and future debt repayments.

Q & A Highlights

Q: How many days was the Tasiast operation down in the fourth quarter? A: Claude Schimper, Executive Vice-President and Chief Operating Officer, stated that the Tasiast operation was down for about 4 to 5 days for maintenance activities such as relining and changing wells. Despite entering a lower-grade section, the throughput average for the quarter was maintained.

Q: What is driving the higher throughput at Tasiast, and do you expect it to continue? A: The company has been able to achieve higher throughput by utilizing spare capacity and continuous improvement initiatives. The plant is designed to run an average of 24,000 tonnes per day, with some days exceeding this to balance out lower days. The focus is on maintaining recovery levels without pushing the plant too hard.

Q: How is the underground exploration at Round Mountain being captured in reserves and resources? A: Currently, there is no underground reserve or resource at Phase X at Round Mountain. The resources on the books are all open pits. The company is conducting infill drilling to establish an initial underground resource by the end of the year.

Q: What is the status of the share buyback program, and how does the current share price affect it? A: J.Paul Rollinson, CEO, mentioned that the company sees its shares as undervalued and is considering a share buyback. The decision will be balanced and focused, taking into account the current gold price environment and the company's valuation.

Q: What is the expected impact of tax rates on the company's financials? A: Andrea S. Freeborough, CFO, explained that the company became income taxable in Mauritania in 2024, contributing to higher cash tax guidance. The increase is also due to higher gold prices impacting taxes in Brazil and Chile. The company expects to pay tax installments throughout 2025.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.