KGC - Kinross Gold beats Q4 top and bottom line estimates; initiates FY23 outlook

• Kinross Gold press release ( NYSE: KGC ): Q4 Non-GAAP EPS of $0.09 beats by $0.02 .
• Metal revenue of $1.08B (+75.6% Y/Y) beats by $30M .
• Kinross produced 595,683 Au eq. oz. from continuing operations in Q4 2022, compared with 340,337 Au eq. oz. from continuing operations in Q4 2021.
• The average realized gold price from continuing operations in Q4 2022 was $1,731 per ounce, compared with $1,797 per ounce in Q4 2021.
• Production cost of sales from continuing operations per Au eq. oz. sold decreased to $848 for Q4 2022, compared with $889 in Q4 2021.
• Kinross’ margin from continuing operations per Au eq. oz. sold was $883 for Q4 2022, compared with the Q4 2021 margin of $908.
• Adjusted operating cash flow  from continuing operations for Q4 2022 was $496.1 million, compared with $260.4 million for Q4 2021.
• Capital expenditures from continuing operations increased to $316.8 million for Q4 2022, compared with $255.7 million for Q4 2021.
• Outlook: In 2023, Kinross expects to produce 2.1 million Au eq. oz. (+/- 5%) from its operations, which is an increase of approximately 140,000 Au eq. oz. compared with 2022 production. Kinross’ annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2.0 million attributable ¹ Au eq. oz. (+/- 5%), respectively.
• Production is forecasted to be lower in the first quarter of 2023 compared with the rest of the year, mainly as a result of the current shutdown at Tasiast related to the 24k project, the on-going ramp-up including planned mill shutdown at La Coipa, and the seasonal impacts on mining at Paracatu and on the Company’s US heap leach operations.
• Production cost of sales is expected to be $970 per Au eq. oz. (+/- 5%) for 2023. In 2022, production cost of sales was $937 per Au eq. oz. The moderate year-over-year increase is mainly due to inflationary impacts, including higher costs for labour and consumables.
• The Company expects its all-in sustaining cost ³ to be $1,320 per Au eq. oz. (+/- 5%) for 2023. In 2022, all-in sustaining cost ³ was $1,271 per Au eq. oz. sold.
• Attributable capital expenditures for 2023 are forecast to be approximately $1.0 billion (+/- 5%) and are summarized in the table in Appendix A. The capital expenditures guidance is higher than the prior year mainly due to carryover of capital stripping from 2022 into 2023 across the portfolio, and the advancement of the Manh Choh project and project studies at Great Bear.
• Kinross’ attributable capital expenditures outlook for 2024 and 2025 is $850 million and $700 million, respectively, based on currently approved projects. As Kinross continues to develop and optimize its portfolio for production beyond 2025, other projects may be incorporated into its capital expenditures, as well as potential inflationary impacts, over the 2023-2024 timeframe.

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