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Kinross Gold Rallies 39% in 3 Months: Should You Buy the Stock Now?
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Kinross Gold Corporation’s (KGC - Free Report) shares have shot up 38.5% in the past three months, outperforming the Zacks Mining – Gold industry’s gain of 25.8% and the S&P 500’s decline of 1.2%. The bullishness appears to have been catalyzed by its better-than-expected earnings performance on the back of higher gold prices.
KGC’s gold mining peers, Barrick Mining Corporation (B - Free Report) , Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , have gained 7.2%, 27.4% and 23.7%, respectively, over the same period.
KGC’s 3-month Price Performance
Image Source: Zacks Investment Research
Technical indicators show that KGC has been trading above the 200-day simple moving average (SMA) since March 6, 2024. The stock is also currently trading above its 50-day SMA. The 50-day SMA continues to read higher than the 200-day moving average, indicating a bullish trend.
Kinross Trades Above 50-Day SMA
Image Source: Zacks Investment Research
Is the time right to buy KGC’s shares for potential upside? Let’s take a look at the stock’s fundamentals.
Key Development Projects to Incite KGC’s Growth
Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox operation.
Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu saw a strong start to the year, with first-quarter production rising on strong grades and improved mill recoveries.
Kinross’ Solid Financial Health Bodes Well
KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. The company ended the first quarter with solid liquidity of roughly $2.3 billion. Kinross also generated record free cash flows of around $1.3 billion in 2024, driven by the strength in gold prices and strong operating margins. Free cash flow also more than doubled year over year to $370.8 million in the first quarter.
KGC repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter, reducing its net debt to around $540 million. Its long-term debt-to-capitalization is 14.4%.
Higher gold prices should boost KGC’s profitability and drive cash flow generation. While gold prices have fallen from their April 2025 highs amid U.S.-China trade negotiations and easing U.S. inflation, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,300 per ounce level. Gold prices have gained roughly 28% this year, driven by the aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety.
Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices.
Further, KGC offers a dividend yield of 0.8% at the current stock price. It has a payout ratio of 14% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived to be safe and reliable.
Positive Analyst Sentiment for KGC Stock
Earnings estimates for KGC have been rising over the past 60 days, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2025 and 2026 has been revised upward over the same time frame.
The Zacks Consensus Estimate for 2025 earnings is currently pegged at $1.09, suggesting year-over-year growth of 60.3%. Earnings are also expected to register roughly 11.1% growth in 2026.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
A Look at Kinross Stock’s Valuation
KGC is currently trading at a forward price/earnings of 12.93X, a modest 6.5% discount compared with the industry’s average of 13.83X. It is trading at a premium to Barrick and Newmont and a discount to Agnico Eagle. Both Kinross and Barrick have a Value Score of A, while Newmont has a Value Score of B and Agnico Eagle has a Value Score of C.
KGC’s P/E F12M Vs. Industry, B, NEM & AEM
Image Source: Zacks Investment Research
How Should Investors Play the KGC Stock?
With a strong pipeline of development projects and solid financial health, KGC presents a compelling investment case for those seeking exposure to the gold mining space. Rising earnings estimates and a healthy growth trajectory are the other positives. A favorable gold pricing environment also augurs well. We recommend investors accumulate this Zacks Rank #1 (Strong Buy) stock as it has upbeat growth prospects.
Image: Bigstock
Kinross Gold Rallies 39% in 3 Months: Should You Buy the Stock Now?
Kinross Gold Corporation’s (KGC - Free Report) shares have shot up 38.5% in the past three months, outperforming the Zacks Mining – Gold industry’s gain of 25.8% and the S&P 500’s decline of 1.2%. The bullishness appears to have been catalyzed by its better-than-expected earnings performance on the back of higher gold prices.
KGC’s gold mining peers, Barrick Mining Corporation (B - Free Report) , Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , have gained 7.2%, 27.4% and 23.7%, respectively, over the same period.
KGC’s 3-month Price Performance
Technical indicators show that KGC has been trading above the 200-day simple moving average (SMA) since March 6, 2024. The stock is also currently trading above its 50-day SMA. The 50-day SMA continues to read higher than the 200-day moving average, indicating a bullish trend.
Kinross Trades Above 50-Day SMA
Is the time right to buy KGC’s shares for potential upside? Let’s take a look at the stock’s fundamentals.
Key Development Projects to Incite KGC’s Growth
Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox operation.
Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu saw a strong start to the year, with first-quarter production rising on strong grades and improved mill recoveries.
Kinross’ Solid Financial Health Bodes Well
KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. The company ended the first quarter with solid liquidity of roughly $2.3 billion. Kinross also generated record free cash flows of around $1.3 billion in 2024, driven by the strength in gold prices and strong operating margins. Free cash flow also more than doubled year over year to $370.8 million in the first quarter.
KGC repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter, reducing its net debt to around $540 million. Its long-term debt-to-capitalization is 14.4%.
Higher gold prices should boost KGC’s profitability and drive cash flow generation. While gold prices have fallen from their April 2025 highs amid U.S.-China trade negotiations and easing U.S. inflation, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,300 per ounce level. Gold prices have gained roughly 28% this year, driven by the aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety.
Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump’s policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices.
Further, KGC offers a dividend yield of 0.8% at the current stock price. It has a payout ratio of 14% (a ratio below 60% is a good indicator that the dividend will be sustainable). Backed by strong cash flows and sound financial health, the company's dividend is perceived to be safe and reliable.
Positive Analyst Sentiment for KGC Stock
Earnings estimates for KGC have been rising over the past 60 days, reflecting analysts’ optimism. The Zacks Consensus Estimate for 2025 and 2026 has been revised upward over the same time frame.
The Zacks Consensus Estimate for 2025 earnings is currently pegged at $1.09, suggesting year-over-year growth of 60.3%. Earnings are also expected to register roughly 11.1% growth in 2026.
(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
A Look at Kinross Stock’s Valuation
KGC is currently trading at a forward price/earnings of 12.93X, a modest 6.5% discount compared with the industry’s average of 13.83X. It is trading at a premium to Barrick and Newmont and a discount to Agnico Eagle. Both Kinross and Barrick have a Value Score of A, while Newmont has a Value Score of B and Agnico Eagle has a Value Score of C.
KGC’s P/E F12M Vs. Industry, B, NEM & AEM
How Should Investors Play the KGC Stock?
With a strong pipeline of development projects and solid financial health, KGC presents a compelling investment case for those seeking exposure to the gold mining space. Rising earnings estimates and a healthy growth trajectory are the other positives. A favorable gold pricing environment also augurs well. We recommend investors accumulate this Zacks Rank #1 (Strong Buy) stock as it has upbeat growth prospects.
You can see the complete list of today’s Zacks #1 Rank stocks here.