Education
About Us
Working with TipRanks
Follow Us
Kinross Gold Corp. (TSE:K)
TSX:K
Top Page
Kinross Gold
(TSX:K)75Outperform
Positive Factors
Debt Management
Net debt decreased by 32% driven by strong free cash flow, setting the stage for a reinstatement of the share buyback program.
Production Stability
KGC's ability to maintain annual production at 2 million GEO for 2025-27 is a strong positive that should allay concerns of a potential acquisition.
Negative Factors
Earnings Performance
Q4’24 earnings missed expectations due to higher costs and lower production.
Kinross Gold (K) vs. S&P 500 (SPY)
Market Cap
$19.78B
Dividend Yield1.13%
Average Volume (3M)3.67M
Price to Earnings (P/E)15.2
Beta (1Y)1.57
Revenue Growth16.53%
EPS Growth206.89%
CountryCA
Employees6,600
SectorBasic Materials
Sector Strength56
IndustryMining
Share Statistics
EPS (TTM)1.06
Shares Outstanding1,229,100,000
10 Day Avg. Volume4,161,556
30 Day Avg. Volume3,672,670
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)N/A
Price to Sales (P/S)2.61
Price to Cash Flow (P/CF)4.60
P/FCF Ratio7.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.13Price Target Upside18.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Kinross Gold Business Overview & Revenue Model
Company DescriptionKinross Gold Corp. is an exploration company. It engages in the production, acquisition, exploration and development of gold bearing properties in Canada, United States, the Russian Federation, Brazil, Ecuador, Chile, Ghana and Mauritania. The products are gold and silver produced in the form of dore. The company operates through the following business segments: Fort Knox, Round Mountain, Kettle River-Buckhorn, Kupol, Paracatu, Crixas, La Coipa, Maricunga, Tasiast and Chirano. The company was founded by Robert MacKay Buchan on May 31, 1993 and is headquartered in Toronto, Canada.
How the Company Makes MoneyKinross Gold generates revenue primarily through the extraction and sale of gold. The company operates several mines across the Americas, West Africa, and Russia, where it extracts gold ore and processes it into gold bars or dore. These products are then sold on the global market at prevailing gold prices, contributing to the company's primary revenue stream. Additionally, Kinross occasionally sells silver as a byproduct of its gold mining operations. Strategic partnerships and joint ventures with other mining companies or local entities can also influence its earnings, allowing shared risk and capital investments in new projects or expansions. Fluctuations in gold market prices, production costs, and operational efficiencies are significant factors affecting Kinross Gold's profitability.
Kinross Gold Financial Statement Overview
Summary
Kinross Gold demonstrates strong profitability with robust profit margins, efficient operations, and significant cash flow generation. The company shows a solid growth trajectory, low leverage, and efficient use of equity. However, sector volatility and past income fluctuations present potential risks.Income Statement
Kinross Gold demonstrates strong profitability with a TTM gross profit margin of 32.68% and a net profit margin of 15.23%. The revenue growth rate from the previous year to the TTM is 14.37%, indicating solid growth trajectory. EBIT and EBITDA margins are robust at 25.42% and 48.46% respectively, showing operational efficiency. Despite these strengths, the mining sector can be volatile, and past fluctuations in net income highlight potential risks.78
Positive
Balance Sheet
The company maintains a stable financial position with a debt-to-equity ratio of 0.19 in the TTM, reflecting low leverage. The equity ratio stands at 61.77%, indicating strong asset backing by equity. Return on Equity (ROE) improved to 11.11%, showcasing efficient use of shareholders' funds. However, high total liabilities relative to past years could pose potential risks if not managed carefully.72
Positive
Cash Flow
Kinross Gold shows strong cash flow generation with a significant free cash flow growth of 100.40% in the TTM. The operating cash flow to net income ratio is 2.87, indicating robust cash-generating capacity relative to profits. The free cash flow to net income ratio at 1.38 confirms good cash conversion from earnings. These strengths in cash flow position the company well for future investments and debt servicing.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 4.85B | 4.24B | 3.46B | 3.73B | 4.21B | 3.50B | Gross Profit |
| 1.58B | 1.16B | 515.40M | 1.02B | 2.30B | 1.35B | EBIT |
| 1.23B | 801.40M | 200.40M | 463.60M | 1.90B | 991.10M | EBITDA |
| 2.35B | 1.76B | 958.90M | 851.60M | 2.73B | 1.77B | Net Income Common Stockholders |
| 738.60M | 416.30M | 30.60M | 221.20M | 1.34B | 718.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 349.00M | 366.90M | 418.10M | 531.50M | 1.21B | 575.10M | Total Assets |
| 8.06B | 10.54B | 10.40B | 10.43B | 10.93B | 9.08B | Total Debt |
| 1.74B | 2.26B | 2.62B | 1.68B | 1.97B | 1.88B | Net Debt |
| 1.39B | 1.91B | 2.20B | 1.15B | 759.30M | 1.30B | Total Liabilities |
| 3.54B | 4.36B | 4.51B | 3.78B | 4.27B | 3.74B | Stockholders Equity |
| 4.51B | 6.08B | 5.82B | 6.58B | 6.60B | 5.32B |
| Cash Flow | Free Cash Flow | ||||
| 1.02B | 507.00M | 242.20M | 145.50M | 993.60M | 119.70M | Operating Cash Flow |
| 2.12B | 1.61B | 1.05B | 1.14B | 1.96B | 1.22B | Investing Cash Flow |
| -1.20B | -1.12B | -1.60B | -1.19B | -1.25B | -1.03B | Financing Cash Flow |
| -909.80M | -549.00M | 437.50M | -623.20M | -67.70M | 25.10M |
Kinross Gold Technical Analysis
Positive
16.09
Price Trends
15.36
Positive
14.65
Positive
13.20
Positive
Market Momentum
<0.01
Positive
52.80
Neutral
47.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:K, the sentiment is Positive. The current price of 16.09 is below the 20-day moving average (MA) of 16.27, above the 50-day MA of 15.36, and above the 200-day MA of 13.20, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 47.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:K.
Kinross Gold Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Performance Comparison
TSE:K
Kinross Gold
16.42
9.29
130.36%
AEM
Agnico Eagle
99.55
46.94
89.22%
GOLD
Barrick Gold
18.46
3.09
20.10%
EGO
Eldorado Gold
14.35
2.19
18.01%
NGD
New Gold
2.82
1.35
91.84%
Kinross Gold Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -7.22% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong financial performance and significant operational achievements, particularly in free cash flow and debt repayment. However, there were concerns about increased costs and reduced production at Tasiast, along with higher tax payments. Overall, the positives seem to outweigh the negatives.Highlights
Record Free Cash Flow
Kinross Gold generated a record free cash flow of over $1.34 billion for the full year, more than doubling against the prior year.
Strong Operating Margins
Operating margins increased by 37% compared to a 23% increase in the realized gold price, demonstrating strong cost management.
Production Achievements
Full year production achieved market commitments with over 2.1 million ounces produced. Tasiast and Paracatu were significant contributors, with Tasiast delivering a record annual throughput.
Debt Repayment
Kinross Gold fully repaid its $1 billion term loan, reducing net debt by approximately $1.4 billion over the last 24 months.
Sustainability Initiatives
Kinross completed more than 15 energy efficiency projects and is on track to achieve a 30% reduction in emissions intensity by 2030.
Lowlights
Higher Cost Guidance
Cost of sales and all-in sustaining costs (AISC) are guided to increase by approximately 10% in 2025 due to lower production and modest cost inflation.
Lower Planned Production at Tasiast
Production from Tasiast is expected to be lower in 2025 due to mine plan sequencing and lower grades.
Increased Cash Tax Payments
Cash tax guidance increased significantly, reflecting higher income taxes in Mauritania, Brazil, and Chile due to higher gold prices.
Company Guidance
In the Kinross Gold Fourth Quarter 2024 Results Conference Call, the company reported producing over 500,000 ounces in Q4 and over 2.1 million ounces for the full year, achieving its market commitments. The cost of sales was $1,096 per ounce in Q4 and $1,021 for the year, while all-in sustaining costs were $1,510 per ounce in Q4 and $1,388 for the year. The company generated record free cash flow of more than $1.34 billion, significantly benefiting from a 37% rise in operating margins against a 23% increase in the realized gold price. Kinross's two largest assets, Tasiast and Paracatu, accounted for over half of the production, with Tasiast delivering record throughput and Paracatu producing over 500,000 ounces for the seventh consecutive year. The company's outlook remains stable, with a production target of 2 million ounces annually through 2027, and it plans to return additional capital to shareholders via a share buyback if the current gold price holds.Kinross Gold Corporate Events
Kinross Gold to Announce 2024 Financial Results and 2025 Guidance in February
Jan 13, 2025
Kinross Gold Corporation announced it will release its fourth-quarter and full-year 2024 financial results and 2025 guidance on February 12, 2025. The announcement will include mineral reserves and resources, as well as updates on exploration and projects, followed by a conference call and webcast on February 13. Additionally, the company provided its quarterly reporting schedule for 2025, which includes releases and conference calls for the first three quarters, and the date for its Annual Meeting of Shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.