Kinross Gold to Post Q4 Earnings: What’s in the Cards for the Stock?

Kinross Gold Corporation (KGC Quick QuoteKGC – Free Report) is slated to release fourth-quarter 2024 results after the closing bell on Feb. 12.

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The company beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. In this timeframe, it delivered an earnings surprise of 32.5%, on average. It posted an earnings surprise of 33.3% in the last reported quarter. KGC is likely to have benefited from higher average realized gold prices in the quarter to be reported.

KGC’s shares have rallied 123.9% over a year compared with the Zacks Mining – Gold industry’s 48.6% 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 +8.70%. The Zacks Consensus Estimate for the fourth quarter is currently pegged at 23 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 #3.

What do KGC’s Revenue Estimates Say?

The Zacks Consensus Estimate for revenues for Kinross for the to-be-reported quarter stands at $1,108.1 million, reflecting a decline of around 0.7% from the year-ago quarter.

Factors to Watch For KGC Stock

Higher gold prices are likely to have supported the company’s performance in the December quarter. Gold has been among the best-performing assets in 2024. Gold prices rallied roughly 27% last year, driven by strong demand from central banks, monetary easing in the United States, global uncertainties and a surge in safe-haven demand thanks to increased tensions in the Middle East and Russia. The strength in gold prices is expected to reflect on KGC’s profitability and cash flows in the fourth quarter. Our estimate for fourth-quarter average realized gold price per ounce is pegged at $2,439, suggesting a 23.6% rise from the prior-year quarter.

Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast, which remains the lowest-cost asset within its portfolio, is likely to have achieved strong performance while Paracatu is expected to continue to have delivered steady production in the fourth quarter. 

KGC, like most miners, is exposed to higher production costs. In the third quarter of 2024, its production cost of sales per gold equivalent ounce was up roughly 7% from the previous year. All-in-sustaining costs also rose around 4% year over year. While KGC is taking actions to control costs, the inflationary pressure is likely to have continued in the December quarter, weighing on its overall financial performance.

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 de Nemours, Inc. (DD Quick QuoteDD – Free Report) , slated to release earnings on Feb. 11, has an Earnings ESP of +0.06% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for DD’s earnings for the fourth quarter is currently pegged at 98 cents.

CF Industries Holdings, Inc. (CF Quick QuoteCF – Free Report) , slated to release earnings on Feb. 19, has an Earnings ESP of +1.70% and carries a Zacks Rank #3 at present.

The consensus mark for CF’s fourth-quarter earnings is currently pegged at $1.49.

Albemarle Corporation (ALB Quick QuoteALB – Free Report) , slated to release earnings on Feb. 12, has an Earnings ESP of +13.62% and carries a Zacks Rank #3. 

The consensus estimate for ALB’s earnings for the fourth quarter is currently pegged at a loss of 49 cents.