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Kinross Gold Corp. (TSE:K)
TSX:K
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Kinross Gold
(TSX:K)
Rating:77Outperform
Price Target:
C$24.00
▲(11.06%Upside)
Positive Factors
Financial Performance
Kinross portfolio is seen as a low risk, steady collection of assets with a low-cost core that make a strong cash flow engine.
Valuation
Kinross has shown good execution and trades at a discount with a 14% free cash flow yield at spot.
Negative Factors
Earnings
Q4’24 earnings missed expectations due to higher costs and lower production.
Production
Q4'24 earnings missed on unit higher costs and to a lesser extent, lower production.
Kinross Gold (K) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$26.51B
Dividend Yield0.04%
Average Volume (3M)3.35M
Price to Earnings (P/E)16.0
Beta (1Y)1.40
Revenue Growth30.84%
EPS Growth188.80%
CountryCA
Employees8,447
SectorBasic Materials
Sector Strength73
IndustryGold
Share Statistics
EPS (TTM)0.41
Shares Outstanding1,226,800,000
10 Day Avg. Volume3,042,654
30 Day Avg. Volume3,345,736
Financial Highlights & Ratios
PEG Ratio0.57
Price to Book (P/B)2.62
Price to Sales (P/S)0.00
P/FCF Ratio11.81
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.97
Enterprise Value/Gross Profit7.90
Enterprise Value/Ebitda1.91
Forecast
1Y Price Target
$25.09Price Target Upside16.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
Kinross Gold Business Overview & Revenue Model
Company DescriptionKinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. Kinross Gold Corporation was founded in 1993 and is headquartered in Toronto, Canada.
How the Company Makes MoneyKinross Gold makes money primarily through the extraction, production, and sale of gold and silver. The company's revenue model is centered around mining operations, where it extracts ore from its mines and processes it to produce gold and silver bullion. These precious metals are then sold in the global commodities markets, where prices are subject to market fluctuations. Kinross Gold also engages in strategic partnerships and joint ventures to optimize its mining operations and expand its resource base. Additionally, the company may enter into hedging contracts to manage price risk and ensure stable cash flows. Factors such as operational efficiency, cost management, and market demand for gold and silver significantly contribute to the company's earnings.
Kinross Gold Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 3.12%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
Kinross Gold demonstrated a strong start to 2025 with robust financial results, enhanced shareholder returns, and a solid safety and operational performance. Despite some operational challenges, including the fire at Tasiast and inflationary pressures, the company maintains a positive outlook and is well-positioned to meet its annual guidance.Q1-2025 Updates
Positive Updates
Strong Start to 2025 with High Production
Kinross Gold achieved a production of 512,000 ounces in Q1 2025, with significant contributions from Tasiast and Paracatu, which accounted for more than half of the output.
Financially Robust Position
Q1 margins were strong at over $1800 per ounce. Adjusted earnings were $0.30 per share, and adjusted operating cash flow was $676 million. The company increased its liquidity to approximately $2.3 billion.
Enhanced Shareholder Returns
Kinross announced the reactivation of its share buyback program, aiming for a $500 million repurchase of common shares in 2025, marking a 300% increase in total return of capital compared to last year.
Operational Excellence and Safety
The company completed its safety excellence program, including 54 operational learning teams and over 28,000 field engagements in Q1 2025.
Positive Credit Outlook
Moody's revised Kinross Gold's outlook to positive from stable and reaffirmed its investment-grade credit rating, reflecting financial stability.
Negative Updates
Tasiast Fire Incident
A fire incident in mid-April at the Tasiast mill led to a brief shutdown, affecting production temporarily, although the company mitigated the impact by expediting repairs.
Production Challenges at Round Mountain
Round Mountain's production was lower due to mine sequencing as mining transitions, with production expected to improve towards the end of the year.
Inflation and Rising Costs
Kinross expects inflation to range between 3% to 4% for the year, and operating costs are projected to increase due to factors like stripping costs at certain phases being characterized as operating costs from midyear.
Company Guidance
During the Kinross Gold First Quarter 2025 Results Conference Call, the company provided a robust guidance outlook for the year. Kinross produced 512,000 gold equivalent ounces in Q1, with notable contributions from Tasiast and Paracatu, which accounted for more than half of the production. The cost of sales was $1,038 per ounce, and all-in sustaining costs were $1,355 per ounce, both favorable compared to annual guidance. The company reported strong margins of over $1,800 per ounce and adjusted earnings of $0.30 per share. Kinross plans to maintain its financial discipline and cost management to achieve the annual production target of 2 million ounces at a cost of sales of $1,120 per ounce and all-in sustaining cost of $1,500 per ounce. The company also outlined its capital return strategy, aiming to repurchase a minimum of $500 million in shares, enhancing total return of capital to $650 million, a 300% increase from the previous year. Additionally, capital expenditures are on track to meet the $1.15 billion guidance for 2025.Kinross Gold Financial Statement Overview
Summary
Kinross Gold demonstrates strong financial health with growing revenues and efficient cash flow management. While profitability metrics are improving, historical fluctuations in net income and moderate ROE indicate areas for vigilance. The company's solid balance sheet and cash flow positions it well for future growth, albeit with some profitability stability concerns.Income Statement
Kinross Gold shows strong revenue growth with a 8.06% increase in TTM over the previous year. Gross profit and net profit margins have also improved, demonstrating enhanced operational efficiency. The EBIT and EBITDA margins are robust, indicating effective cost management. However, the net income fluctuated significantly in past years, posing risks to consistent profitability.78
Positive
Balance Sheet
The balance sheet is solid with a favorable debt-to-equity ratio of 0.17 in TTM, reflecting manageable leverage. The equity ratio of 65.75% underscores a strong equity base. However, the return on equity is moderate, suggesting room for improvement in generating returns from equity.72
Positive
Cash Flow
Kinross Gold's cash flow statement is impressive, with a substantial 24.89% growth in free cash flow in TTM, indicating efficient cash management. The operating cash flow to net income ratio is healthy, ensuring liquidity to support operations. The free cash flow to net income ratio further highlights the company's ability to convert profits into cash.83
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.15B | 4.24B | 3.46B | 3.73B | 4.21B |
| Gross Profit | 1.88B | 1.16B | 515.40M | 1.02B | 2.30B |
| EBITDA | 2.60B | 1.76B | 945.40M | 854.61M | 2.73B |
| Net Income | 948.80M | 416.30M | -605.20M | 221.20M | 1.34B |
Balance Sheet | |||||
| Total Assets | 10.87B | 10.54B | 10.40B | 10.43B | 10.93B |
| Cash, Cash Equivalents and Short-Term Investments | 628.20M | 366.90M | 426.00M | 548.10M | 1.21B |
| Total Debt | 1.45B | 2.26B | 2.64B | 1.68B | 2.00B |
| Total Liabilities | 3.87B | 4.36B | 4.51B | 3.78B | 4.27B |
| Stockholders Equity | 6.86B | 6.08B | 5.82B | 6.58B | 6.60B |
Cash Flow | |||||
| Free Cash Flow | 1.28B | 507.00M | 242.20M | 313.50M | 993.60M |
| Operating Cash Flow | 2.45B | 1.61B | 1.05B | 1.14B | 1.96B |
| Investing Cash Flow | -1.18B | -1.01B | -1.60B | -1.19B | -1.25B |
| Financing Cash Flow | -1.01B | -549.00M | 437.50M | -623.20M | -67.70M |
Kinross Gold Technical Analysis
Positive
21.61
Price Trends
20.92
Positive
19.71
Positive
17.13
Positive
Market Momentum
0.23
Negative
53.36
Neutral
71.17
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 21.61 is above the 20-day moving average (MA) of 21.36, above the 50-day MA of 20.92, and above the 200-day MA of 17.13, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 53.36 is Neutral, neither overbought nor oversold. The STOCH value of 71.17 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 (44)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $26.51B | 16.03 | 18.12% | 0.04% | 30.84% | 188.80% | |
56 Neutral | $37.01B | 16.23 | 9.70% | 1.85% | 19.79% | -262.11% | |
44 Neutral | C$980.54M | -6.82 | -13.68% | 1.81% | 17.37% | -32.98% | |
| ― | $4.64B | ― | -17.61% | 3.41% | ― | ― | |
| ― | $11.02B | 42.07 | 7.85% | 0.39% | ― | ― | |
| ― | $11.27B | 21.20 | 47.31% | 3.33% | ― | ― | |
76 Outperform | C$10.29B | ― | -3.12% | 0.10% | 59.60% | -74.74% |
* Basic Materials Sector Average
Performance Comparison
TSE:K
Kinross Gold
21.61
9.61
80.13%
B
Barrick Mining
21.54
3.95
22.46%
BTG
B2Gold
3.52
0.72
25.71%
AGI
Alamos Gold
25.72
8.92
53.10%
LUGDF
Lundin Gold
46.88
31.32
201.29%
TSE:EDV
Endeavour Mining
42.30
12.83
43.54%
Kinross Gold Corporate Events
Executive/Board ChangesShareholder Meetings
Kinross Gold Reports Strong Shareholder Support at Annual Meeting
Positive
May 8, 2025
Kinross Gold Corporation announced the results of its Annual Shareholder Meeting, where the election of its Board of Directors took place. All nominees were successfully elected, with high approval rates. Additionally, the ‘Say on Pay’ resolution regarding executive compensation and the appointment of auditors were approved by the shareholders. These results reflect strong shareholder support for the company’s leadership and strategic direction.
Executive/Board ChangesShareholder Meetings
Kinross Gold Announces Successful Board Elections and Shareholder Meeting Results
Positive
May 8, 2025
Kinross Gold Corporation announced the results of its Annual Shareholder Meeting, where the election of its Board of Directors took place. All nominees listed in the Management Information Circular were elected, with high approval ratings. Additionally, the ‘Say on Pay’ resolution on executive compensation and the appointment of auditors received significant support from shareholders. These results reflect strong shareholder confidence in the company’s leadership and strategic direction.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.