Kinross Gold Delivers Record-Breaking 2024, Reaffirms Stable Production Output

Kinross Gold KGC had a strong 2024, delivering record-free cash flow, improved margins, and stable production across its global operations. An outstanding $1.3 billion in free cash flow more than doubled from the previous year, while the company also reduced its debt.

"2024 marked another excellent year for Kinross, and we have, once again, met our production and cost guidance. We delivered record free cash flow, repaid $800 million of debt, and grew our margins by 37%, significantly outpacing the rise in gold price," CEO Paul Rollinson said in the announcement.

Kinross produced 2.13 million gold-equivalent ounces (GEO) in 2024, similar to 2.15 million produced in 2023. Final quarter production of 501,209 GEOs slowed down compared to Q4 2023's 543,513 GEOs owing to planned lower grades and maintenance, but higher gold prices helped offset the output.

The company's full-year revenue surged to $5.15 billion, a 21% increase from $4.24 billion in 2023, primarily driven by an average realized gold price of $2,393 per ounce, compared to $1,945 per ounce the prior year. In Q4, the average realized gold price reached $2,663 per ounce, significantly above the $1,974 recorded in the same period in 2023.

Naturally, this higher gold price boosted margins. Full-year margins per GEO sold increased to $1,373 from $1,003 in 2023, while fourth-quarter margins went as high as $1,565 per GEO. Thus, net earnings soared to $948.8 million, or $0.77 per share – a substantial increase from 2023's $416.3 million or $0.34 per share.

The firm reaffirmed its commitment to shareholder value, declaring a quarterly dividend of $0.03 per share payable on March 20, 2025. Additionally, the company intends to reinstate its share buyback program later in the year, pending the renewal of its normal course issuer bid with the Toronto Stock Exchange.

Regarding individual operations, the Tasiast mine in Mauritania delivered a record 622,394 GEOs, benefiting from increased throughput following the completion of the Tasiast 24k project.

Paracatu maintained strong output, with over 500,000 ounces produced for the seventh consecutive year. At the same time, Fort Knox saw a significant increase in annual production following the first gold from the Manh Choh project.

La Coipa's production declined due to lower silver grades, but throughput improvements helped offset some of the impact. Bald Mountain's resource conversion added nearly one million ounces to reserves, prompting the company to advance mining at the Redbird deposit.

Kinross continues advancing the Great Bear project in Canada, handling permitting and engineering work at Lobo-Marte in Chile, and expanding drilling at Round Mountain Phase X.

Management reaffirmed stable production guidance of around two million GEOs annually for 2025, 2026, and 2027, focusing on cost control, capital discipline, and sustaining financial strength.

Price Action: KGC stock was trading lower by 3.95% to $11.67 premarket at the last check on Thursday.

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