Exited Kinross Gold Corporation with a 13% gain

KGC announced their 1Q24 results, which sent the stock price higher. We closed the position following our model signal.

Gold prices consolidated in a range over April, but continued climbing in May.

The precious metal delivered its highest return since April 5, on the back of interest rate cut expectations from the Federal Reserve. GDP growth in the US slowed to an annualized pace of 1.6%, which fell below the 3.4% recorded in 4Q23.

Production increased 13% year-on-year

Kinross Gold Corp reported stronger earnings with higher production.

Company started 2024 with robust margins as most of their field developments are on track to meet their annual targets.

More impressively, operating cash flow surged from USD 259m in 1Q23 to USD 374m. Attributable cash flow nearly tripled from USD 358m to USD 425m.

Further, earnings per share rose from USD 0.07 to USD 0.09

The market liked the company’s result, and sent the stock up by nearly 17%

However, the model suggested trimming profits, which we did (As a recap - we bought the company in early April). Afterall, at the current level, the valuation was within the upper range of most forecasts surveyed by Tipsrank.

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