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Can Kinross Gold's Cash Strength Fuel Greater Shareholder Returns?

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Key Takeaways

  • Kinross reactivated its buyback program in April 2025, repurchasing $170 million in shares in Q2.
  • KGC plans to return at least $650 million to shareholders in 2025 through dividends and buybacks.
  • Second-quarter free cash flow surged 87% year over year, fueled by higher gold prices and solid operations.

Kinross Gold Corporation (KGC - Free Report) is capitalizing on its solid financial footing and robust free cash flow to enhance shareholder value through dividends and share repurchases. It reactivated its share buyback program in April 2025 and repurchased shares worth roughly $225 million as of July 30, 2025, including $170 million in shares in the second quarter. Total returns to shareholders, including dividends, were around $300 million.

KGC, on its second-quarter call, said that it remains committed to returning significant capital to shareholders going forward. It plans to return at least $650 million through dividends and repurchases this year. 

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. Tasiast and Paracatu, the company’s two biggest assets, remain the key contributors to cash flow generation and production. It ended the second quarter with robust liquidity of roughly $2.8 billion, including cash and cash equivalents of more than $1.1 billion. Second-quarter free cash flow surged approximately 87% year over year and 74% from the preceding quarter, driven by the strength in gold prices and strong operating performance.  

KGC is executing a well-defined capital allocation policy, using its substantial cash generation to drive shareholder value, fund a strong pipeline of growth projects and pay down debt. With gold prices hitting new highs, it remains well-placed to continue this shareholder-focused strategy. 

Among its peers, Barrick Mining Corporation (B - Free Report) has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development and exploration opportunities and drive shareholder value. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick’s board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $411 million under this program during the first half of 2025. 

Newmont Corporation (NEM - Free Report) has already delivered $2 billion to its shareholders through dividends and share repurchases since the beginning of 2025. Newmont generated solid free cash flow of $1.7 billion in the second quarter, reflecting strong financial health supporting growth initiatives and shareholder returns. Newmont is well-placed to strengthen its balance sheet and continue returning capital to its shareholders following the completion of its divestment program.

The Zacks Rundown for KGC

Kinross Gold’s shares have shot up 173% year to date against the Zacks Mining – Gold industry’s rise of 120.2%, largely driven by the gold price rally.

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From a valuation standpoint, KGC is currently trading at a forward 12-month earnings multiple of 16.69, a modest 1.4% premium to the industry average of 16.46X. It carries a Value Score of B.

Zacks Investment Research Image Source: Zacks Investment Research

The Zacks Consensus Estimate for KGC’s 2025 and 2026 earnings implies a year-over-year rise of 110.3% and 8.1%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

Zacks Investment Research Image Source: Zacks Investment Research

KGC stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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