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Can Kinross Gold Sustain Its Robust Margin Momentum in Q4?
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Key Takeaways
Kinross Gold achieved robust Q3 margins, up 54% year over year, on higher gold prices.
Q3 free cash flow surged 66% to $686.7 million, with key mines driving over half of production.
KGC's cost discipline and higher gold prices are likely to sustain strong margin performance in Q4.
Kinross Gold Corporation (KGC - Free Report) logged a solid third-quarter operating margin, courtesy of a rally in gold prices, cost management and strong production performance. Its margin per gold equivalent ounce sold rose to $2,310, a 54% jump year over year, driven by a sharp rise in the average realized gold price. The margin growth even outpaced the 40% rise in average realized gold price to $3,460 per ounce.
Strong margins allowed KGC to generate record free cash flow in the third quarter. Its attributable free cash flow surged approximately 66% year over year to $686.7 million, driven by the strength in gold prices and operating performance. Free cash flow for the first nine months of 2025 was around $1.7 billion. Paracatu and Tasiast mines, which accounted for more than half of KGC’s production, contributed significant cash flow in the third quarter.
The company’s cost-control actions, coupled with continued strength in gold prices, are expected to allow it to maintain the strong margin performance in the fourth quarter. Kinross is focused on prioritizing margin improvement to drive cash flow, which should support shareholder returns.
Among its peers, Agnico Eagle Mines Limited (AEM - Free Report) also posted record operating margins in the third quarter on gold price strength. Agnico Eagle’s total operating margins climbed roughly 62% year over year on the back of higher realized prices. Higher margins contributed to a year-over-year increase in Agnico Eagle’s net income and operating cash flows in the third quarter.
Newmont Corporation (NEM - Free Report) also remains committed to maintaining its cost discipline to sustain margin expansion. Newmont achieved a notable milestone in the third quarter of 2025 by reducing its all-in sustaining costs (AISC) — the most important cost metric of miners — to $1,566 per ounce, marking a roughly 2% decrease from the prior quarter. Newmont is taking several actions to improve cost and drive productivity across its portfolio, which are expected to contribute to strong margin performance.
The Zacks Rundown for KGC
Kinross Gold’s shares have shot up 111.3% in the past six months against the Zacks Mining – Gold industry’s rise of 74%, largely driven by the gold price rally.
Image Source: Zacks Investment Research
From a valuation standpoint, KGC is currently trading at a forward 12-month earnings multiple of 14.49, a 1.2% discount to the industry average of 14.66X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KGC’s 2025 and 2026 earnings implies a year-over-year rise of 147.1% and 35.2%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
Image: Bigstock
Can Kinross Gold Sustain Its Robust Margin Momentum in Q4?
Key Takeaways
Kinross Gold Corporation (KGC - Free Report) logged a solid third-quarter operating margin, courtesy of a rally in gold prices, cost management and strong production performance. Its margin per gold equivalent ounce sold rose to $2,310, a 54% jump year over year, driven by a sharp rise in the average realized gold price. The margin growth even outpaced the 40% rise in average realized gold price to $3,460 per ounce.
Strong margins allowed KGC to generate record free cash flow in the third quarter. Its attributable free cash flow surged approximately 66% year over year to $686.7 million, driven by the strength in gold prices and operating performance. Free cash flow for the first nine months of 2025 was around $1.7 billion. Paracatu and Tasiast mines, which accounted for more than half of KGC’s production, contributed significant cash flow in the third quarter.
The company’s cost-control actions, coupled with continued strength in gold prices, are expected to allow it to maintain the strong margin performance in the fourth quarter. Kinross is focused on prioritizing margin improvement to drive cash flow, which should support shareholder returns.
Among its peers, Agnico Eagle Mines Limited (AEM - Free Report) also posted record operating margins in the third quarter on gold price strength. Agnico Eagle’s total operating margins climbed roughly 62% year over year on the back of higher realized prices. Higher margins contributed to a year-over-year increase in Agnico Eagle’s net income and operating cash flows in the third quarter.
Newmont Corporation (NEM - Free Report) also remains committed to maintaining its cost discipline to sustain margin expansion. Newmont achieved a notable milestone in the third quarter of 2025 by reducing its all-in sustaining costs (AISC) — the most important cost metric of miners — to $1,566 per ounce, marking a roughly 2% decrease from the prior quarter. Newmont is taking several actions to improve cost and drive productivity across its portfolio, which are expected to contribute to strong margin performance.
The Zacks Rundown for KGC
Kinross Gold’s shares have shot up 111.3% in the past six months against the Zacks Mining – Gold industry’s rise of 74%, largely driven by the gold price rally.
From a valuation standpoint, KGC is currently trading at a forward 12-month earnings multiple of 14.49, a 1.2% discount to the industry average of 14.66X. It carries a Value Score of B.
The Zacks Consensus Estimate for KGC’s 2025 and 2026 earnings implies a year-over-year rise of 147.1% and 35.2%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.
KGC stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.