Kinross Gold (K) AI Stock Analysis

Compare

454 Followers

TSE:K Dividends

Top Page

Kinross Gold

(TSX:K)

79Outperform

Kinross Gold's strong financial performance, efficient cost control, and positive earnings guidance are the most significant factors contributing to the stock's score. While technical indicators show positive momentum, caution is advised due to nearing overbought conditions. Moderate valuation and inflationary pressures are considerations, but overall, the company is well-positioned within the gold industry, reflecting its resilience and strategic initiatives.

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.

Resource Expansion

Inferred resources increased by 15% driven by higher grade additions at Great Bear and Curlew.

Share Buyback

Net debt decreased by 32% driven by strong free cash flow, setting the stage for a reinstatement of the share buyback program.

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

$25.84B

Dividend Yield0.78%

Average Volume (3M)3.79M

Price to Earnings (P/E)18.9

Beta (1Y)1.56

Revenue Growth30.84%

EPS Growth188.80%

CountryCA

Employees8,447

SectorBasic Materials

Sector Strength60

IndustryGold

Share Statistics

EPS (TTM)0.41

Shares Outstanding1,230,444,000

10 Day Avg. Volume3,367,443

30 Day Avg. Volume3,789,174

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap0.69

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit6.02

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$21.68

Price Target Upside5.46% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering9

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 Financial Statement Overview

Summary

Kinross Gold's financial performance is commendable, with significant revenue growth and improved profitability margins reflecting operational efficiency. The balance sheet is strong with a conservative leverage approach, though asset utilization can be optimized. Excellent cash flow management enhances financial flexibility, positioning the company well for future growth and resilience in the mining sector.

Income Statement

Very Positive

Kinross Gold has demonstrated strong revenue growth with a 21.45% increase from the previous year, and a significant net profit margin improvement to 18.43% in 2024. The gross profit margin is robust at 57.34%, indicating effective cost control. Additionally, the EBIT and EBITDA margins have shown considerable strength at 29.92% and 50.53% respectively. These metrics reflect strong profitability and operational efficiency in a competitive mining industry.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.21, indicating a conservative leverage position, which is positive for financial stability. Return on equity has improved to 13.83%, showcasing effective utilization of equity. The equity ratio of 63.15% reflects a solid capital structure. However, there is room for improvement in asset utilization to further enhance financial health.

Cash Flow

Very Positive

Kinross Gold's free cash flow growth rate is impressive at 152.06%, indicating strong cash generation capabilities. The operating cash flow to net income ratio stands at 2.58, suggesting robust cash conversion efficiency. The free cash flow to net income ratio of 1.35 further underscores healthy cash flow management. These metrics highlight strong liquidity and financial flexibility.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
5.15B	4.24B	3.46B	3.73B	4.21B
	Gross Profit
2.95B	1.16B	515.40M	1.02B	2.30B
	EBIT
1.54B	764.40M	200.40M	463.60M	1.90B
	EBITDA
2.60B	1.76B	945.40M	854.61M	2.73B
	Net Income Common Stockholders
948.80M	416.30M	-605.20M	221.20M	1.34B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
628.20M	366.90M	418.10M	531.50M	1.21B
	Total Assets
10.87B	10.54B	10.40B	10.43B	10.93B
	Total Debt
1.45B	2.26B	2.62B	1.68B	1.97B
	Net Debt
841.00M	1.91B	2.20B	1.15B	759.30M
	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	145.50M	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

Technical Analysis Sentiment

Positive

Last Price20.56

Price Trends

50DMA

18.17

Positive

100DMA

16.65

Positive

200DMA

14.84

Positive

Market Momentum

MACD

0.70

Positive

RSI

68.01

Neutral

STOCH

85.63

Negative

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 20.56 is above the 20-day moving average (MA) of 20.17, above the 50-day MA of 18.17, and above the 200-day MA of 14.84, indicating a bullish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 68.01 is Neutral, neither overbought nor oversold. The STOCH value of 85.63 is Negative, 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 (49)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
K	79 Outperform	$25.84B	18.95	18.12%	0.78%	30.84%	188.80%
EDV	74 Outperform	C$10.01B	―	-3.12%	3.35%	59.60%	-74.74%
Sector *	49 Neutral	$1.94B	-1.23	-21.28%	3.73%	1.19%	-29.73%

* Basic Materials Sector Average

Performance Comparison

TSE:K

Kinross Gold

20.56

10.31

100.62%

GOLD

Barrick Gold

18.86

2.30

13.89%

BTG

B2Gold

3.02

0.39

14.83%

AGI

Alamos Gold

26.61

11.04

70.91%

LUGDF

Lundin Gold

42.68

28.37

198.25%

TSE:EDV

Endeavour Mining

40.37

12.31

43.87%

Kinross Gold Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -2.10%|

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 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.

Spark’s Take on TSE:K Stock

According to Spark, TipRanks’ AI Analyst, TSE:K is a Outperform.

Kinross Gold exhibits a strong overall performance with excellent financial metrics, robust technical indicators, and a positive outlook from recent earnings guidance. The company’s solid production start, enhanced shareholder returns, and effective cost management contribute significantly to its score. However, moderate valuation and inflationary pressures are considerations for investors.

To see Spark’s full report on TSE:K stock, click here.

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.

Spark’s Take on TSE:K Stock

According to Spark, TipRanks’ AI Analyst, TSE:K is a Outperform.

To see Spark’s full report on TSE:K stock, click here.

Business Operations and Strategy

Kinross Gold Temporarily Suspends Tasiast Mill Operations Following Fire

Neutral

Apr 15, 2025

Kinross Gold Corporation announced a temporary suspension of mill operations at its Tasiast mine due to a fire that occurred on April 14, 2025. The fire, which was localized in the SAG discharge area, has been extinguished with no injuries reported. Mining operations continue as planned, and the company is assessing the damage and potential impact on operations. Despite the incident, Kinross does not expect to change its production guidance for Tasiast, indicating that critical spare parts are available on site.

Spark’s Take on TSE:K Stock

According to Spark, TipRanks’ AI Analyst, TSE:K is a Outperform.

Kinross Gold’s strong financial performance, particularly in revenue growth and cash flow generation, underpins its overall stock score. The positive earnings call and technical indicators suggesting upward momentum further support its strong position. However, caution is advised due to potential cost increases and production challenges, along with valuation metrics that, while reasonable, do not provide a significant margin of safety. The stock is well-positioned for future growth, but investors should monitor operational costs and production levels closely.

To see Spark’s full report on TSE:K stock, click here.

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.