Kinross Gold Earnings: Higher Volumes and Prices Drive a Strong Result

No-moat Kinross Gold’s 2023 result was better than we expected. Adjusted EBITDA of roughly USD 1.8 billion was 46% up on 2022 and 7% higher than our forecast. Both gold equivalent ounces, or GEO, sales volumes and prices contributed. Adjusted net profit after tax of USD 540 million, or USD 0.44 (CAD 0.59) per share, roughly doubled, with free cash flow of USD 560 million more than twice that earned in 2022. Strong earnings allowed Kinross to materially improve its net debt position, with net debt now around 1 time trailing 12 months EBITDA, down from roughly 1.7 times. Consistent with its quarterly dividend policy, Kinross will pay a USD 0.03 (roughly CAD 0.04) dividend, the same as last year, in March.