Kinross(US:KGC) ZACKS·2025-07-21 13:05Core Insights - Kinross Gold Corporation (KGC) has significantly improved its leverage profile by repaying $800 million of debt in 2024 and the remaining $200 million of its term loan in Q1 2025, resulting in a net debt reduction to approximately $540 million [1][7] - The company's trailing 12-month net debt-to-EBITDA ratio improved to 0.2X at the end of Q1 2025, down from 0.3X at the end of 2024, with a long-term debt-to-capitalization ratio of 14.4%, which is below the industry average of 14.9% [2][3] - KGC ended Q1 2025 with strong liquidity of about $2.3 billion, including cash and cash equivalents of $694.6 million, and its free cash flow more than doubled year-over-year to $370.8 million, driven by high gold prices and strong operational performance [2][7] Industry Comparison - Among peers, Agnico Eagle Mines Limited (AEM) reduced its net debt by $1,287 million in 2024 and further by $212 million in Q1 2025, ending with just $5 million in net debt [4] - Newmont Corporation (NEM) has also been active in deleveraging, reducing its debt by $1 billion since the start of 2025, with a net debt of $3,221 million at the end of Q1 2025, down from $5,308 million at the end of 2024 [5] Stock Performance - KGC's shares have increased by 65.4% year-to-date, outperforming the industry average rise of 49.5%, primarily due to the rally in gold prices [6][7] - The stock is currently trading at a forward 12-month earnings multiple of 11.59, which is a 4.1% discount to the industry average of 12.09X [9] - Earnings estimates for KGC imply a year-over-year rise of 77.9% for 2025 and 16.7% for 2026, with EPS estimates trending higher over the past 60 days [10]