Can Kinross Gold Sustain Its Robust Margin Momentum in Q4?
Kinross Gold Corporation KGC 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 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 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 KGCKinross 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 ResearchFrom 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 ResearchThe 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 Source: Zacks Investment ResearchKGC stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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