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Kinross Gold Corporation’s (KGC - Free Report) shares have skyrocketed 190.2% year to date, outperforming the Zacks Mining – Gold industry’s growth of 123.6% and the S&P 500’s rise of 14%. The upside has been driven by its better-than-expected earnings performance, buoyed by higher realized gold prices and strong operating performance. The Federal Reserve’s dovish stance, uncertainties surrounding trade tariffs and worries over the U.S. government shutdown have also contributed to the recent record-setting upswing in bullion prices, driving shares of gold miners, including KGC.
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 rallied 123.8%, 151.5% and 128.6%, respectively, over the same period.
KGC’s YTD 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.
Development Projects to Underpin KGC’s Production 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. The successful execution of these projects will position the company for a new wave of low-cost, long-life production.
KGC is making progress with Great Bear’s Advanced Exploration program, with the construction of surface facilities underway. Detailed engineering for key infrastructure is also advancing for the Main Project. At Round Mountain Phase X, underground drilling during the second quarter confirmed strong grades in the primary target zones. Moreover, drilling at the Curlew basin continued to show high-grade intercepts, supporting high-margin production. At the Lobo-Marte project in Chile, KGC is progressing studies to support the Environmental Impact Assessment and remains committed to advancing this potentially long-life, low-cost mine.
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 a consistently strong performance. It achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu continues to deliver a strong performance, with second-quarter production rising on higher grades and improved mill recoveries. 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.
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. KGC ended second-quarter 2025 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.
Kinross repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter of 2025. Moreover, KGC's net debt position improved to around $100 million at the end of the second quarter from $540 million in the prior quarter.
Higher gold prices should boost KGC’s profitability and drive cash flow generation. Gold prices are shooting higher this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have 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 have rocketed roughly 60% so far this year. The Federal Reserve’s interest rate reduction by a quarter of a percentage point, prospects of more rate cuts this year amid concerns over the labor market, along with growing concerns over a protracted U.S. government shutdown, have triggered the rally, driving prices north of $4,000 per ton for the first time. Concerns over the labor market have heightened the rate cut expectations. Escalating U.S.-China trade tensions have also fueled the surge in bullion prices, which are currently hovering near $4,200 per ounce. Increased purchases by central banks and geopolitical and trade tensions are expected to help the yellow metal sustain the upswing in gold prices.
Further, KGC offers a dividend yield of 0.5% at the current stock price. It has a payout ratio of 10% (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 as 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 $1.44, suggesting year-over-year growth of 111.8%. Earnings are also expected to register roughly 9.8% growth in 2026.
Image Source: Zacks Investment Research
A Look at Kinross Stock’s Valuation
KGC is currently trading at a forward price/earnings of 17.69X, a 9.4% premium compared to the industry’s average of 16.17X. It is trading at a premium to Barrick and Newmont and at a discount to Agnico Eagle. Kinross, Barrick and Newmont currently have a Value Score of B each, while 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?
Kinross offers an appealing investment opportunity, supported by a robust pipeline of development projects and a strong financial foundation. Upward-trending earnings estimates and a solid growth outlook further enhance its appeal. The company continues to deliver impressive financial results, generate substantial free cash flow and rapidly reduce debt, benefiting from a supportive gold price environment. With these strong fundamentals and continued gold price momentum, KGC appears well-positioned to deliver attractive returns, making this Zacks Rank #2 (Buy) stock a prudent choice for investors seeking to capitalize on favorable market conditions.
Image: Bigstock
Kinross Gold Soars 190% YTD: Is This the Right Time to Buy the Stock?
Key Takeaways
Kinross Gold Corporation’s (KGC - Free Report) shares have skyrocketed 190.2% year to date, outperforming the Zacks Mining – Gold industry’s growth of 123.6% and the S&P 500’s rise of 14%. The upside has been driven by its better-than-expected earnings performance, buoyed by higher realized gold prices and strong operating performance. The Federal Reserve’s dovish stance, uncertainties surrounding trade tariffs and worries over the U.S. government shutdown have also contributed to the recent record-setting upswing in bullion prices, driving shares of gold miners, including KGC.
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 rallied 123.8%, 151.5% and 128.6%, respectively, over the same period.
KGC’s YTD 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.
Development Projects to Underpin KGC’s Production 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. The successful execution of these projects will position the company for a new wave of low-cost, long-life production.
KGC is making progress with Great Bear’s Advanced Exploration program, with the construction of surface facilities underway. Detailed engineering for key infrastructure is also advancing for the Main Project. At Round Mountain Phase X, underground drilling during the second quarter confirmed strong grades in the primary target zones. Moreover, drilling at the Curlew basin continued to show high-grade intercepts, supporting high-margin production. At the Lobo-Marte project in Chile, KGC is progressing studies to support the Environmental Impact Assessment and remains committed to advancing this potentially long-life, low-cost mine.
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 a consistently strong performance. It achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu continues to deliver a strong performance, with second-quarter production rising on higher grades and improved mill recoveries. 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.
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. KGC ended second-quarter 2025 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.
Kinross repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter of 2025. Moreover, KGC's net debt position improved to around $100 million at the end of the second quarter from $540 million in the prior quarter.
Higher gold prices should boost KGC’s profitability and drive cash flow generation. Gold prices are shooting higher this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have 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 have rocketed roughly 60% so far this year. The Federal Reserve’s interest rate reduction by a quarter of a percentage point, prospects of more rate cuts this year amid concerns over the labor market, along with growing concerns over a protracted U.S. government shutdown, have triggered the rally, driving prices north of $4,000 per ton for the first time. Concerns over the labor market have heightened the rate cut expectations. Escalating U.S.-China trade tensions have also fueled the surge in bullion prices, which are currently hovering near $4,200 per ounce. Increased purchases by central banks and geopolitical and trade tensions are expected to help the yellow metal sustain the upswing in gold prices.
Further, KGC offers a dividend yield of 0.5% at the current stock price. It has a payout ratio of 10% (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 as 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 $1.44, suggesting year-over-year growth of 111.8%. Earnings are also expected to register roughly 9.8% growth in 2026.
A Look at Kinross Stock’s Valuation
KGC is currently trading at a forward price/earnings of 17.69X, a 9.4% premium compared to the industry’s average of 16.17X. It is trading at a premium to Barrick and Newmont and at a discount to Agnico Eagle. Kinross, Barrick and Newmont currently have a Value Score of B each, while 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?
Kinross offers an appealing investment opportunity, supported by a robust pipeline of development projects and a strong financial foundation. Upward-trending earnings estimates and a solid growth outlook further enhance its appeal. The company continues to deliver impressive financial results, generate substantial free cash flow and rapidly reduce debt, benefiting from a supportive gold price environment. With these strong fundamentals and continued gold price momentum, KGC appears well-positioned to deliver attractive returns, making this Zacks Rank #2 (Buy) stock a prudent choice for investors seeking to capitalize on favorable market conditions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.