K:CC - Kinross Gold: A Strong Q1 But No Longer Cheap

2024-05-08 12:50:27 ET

Summary

• Kinross Gold Corporation reports solid Q1 results with increased production and sales, driven by strong performance at its Tasiast and La Coipa mines.
• The company's AISC margins soared year-over-year even with a $2,070/oz gold price, suggesting further margin expansion on deck in Q2 with a ~$2,250/oz+ gold price.
• In this update, we'll dig into the Q1 results and Kinross' updated valuation to see where its updated fair value lies when factoring in the more robust gold price environment.

It's been a solid year thus far for the gold producers, VanEck Gold Miners ETF ( GDX ) which have clawed back their losses after a rough Q1 performance to move solidly back in the green for the year. One of the better performers in the group has been Kinross Gold Corporation ( KGC ), which released its Q1 results this week and reported more solid results to complement what was an excellent turnaround year in 2023. This was helped by record throughput from Tasiast following its 24k Expansion and higher year-over-year production at its new La Coipa Mine....

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