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Kinross Gold Corp. (TSE:K)
TSX:K
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Kinross Gold
(TSX:K)
80Outperform
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 Yield0.84%
Average Volume (3M)3.79M
Price to Earnings (P/E)18.9
Beta (1Y)1.56
Revenue Growth23.38%
EPS Growth131.87%
CountryCA
Employees8,447
SectorBasic Materials
Sector Strength62
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
$21.75Price Target Upside3.59% 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
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.88
Very Positive
Balance Sheet
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.75
Positive
Cash Flow
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.82
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 |
| 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
Positive
21.00
Price Trends
18.05
Positive
16.58
Positive
14.80
Positive
Market Momentum
0.62
Positive
64.43
Neutral
64.16
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 is above the 20-day moving average (MA) of 19.94, above the 50-day MA of 18.05, and above the 200-day MA of 14.80, indicating a bullish trend. The MACD of 0.62 indicates Positive momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 64.16 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 (49)
Financial Indicators
Performance Comparison
TSE:K
Kinross Gold
21.00
11.83
128.96%
GOLD
Barrick Gold
19.23
2.86
17.47%
BTG
B2Gold
3.18
0.77
31.95%
AGI
Alamos Gold
27.24
12.02
78.98%
LUGDF
Lundin Gold
44.77
31.51
237.63%
TSE:EDV
Endeavour Mining
41.32
13.58
48.95%
Kinross Gold Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q4-2024)
| % Change Since: 0.00%|
Next Earnings Date:Jul 30, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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
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.