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Kinross Gold's Costs to Rise Ahead: Can Profits Keep Shining?
KinrossKinross(US:KGC) ZACKS·2025-08-26 12:21

Core Insights - Kinross Gold Corporation (KGC) experienced a 4% year-over-year increase in production costs of sales per ounce, reaching $1,074 in Q2, while all-in-sustaining costs (AISC) rose nearly 8% to $1,493 per gold equivalent ounce sold, indicating inflationary pressures [1][7] - The company anticipates continued cost pressures through the end of 2025, projecting full-year AISC to reach $1,500 and production cash costs around $1,120 per ounce due to lower expected production and inflation [2][7] - KGC's AISC remains lower than peers Barrick Mining Corporation and Newmont Corporation, but rising costs suggest potential margin compression risks ahead [5][7] Industry Comparisons - Barrick Mining Corporation reported a 17% increase in cash costs per ounce and a 12% rise in AISC year-over-year, with AISC reaching $1,684 in Q2 [3] - Newmont Corporation's gold costs applicable to sales rose approximately 6% to $1,215 per ounce, with AISC increasing around 2% to $1,593 per ounce due to production declines from asset divestments [4] Stock Performance - KGC's shares have surged 112.9% year-to-date, outperforming the Mining – Gold industry, which rose 78.6%, primarily driven by a rally in gold prices [6] - The forward 12-month earnings multiple for KGC is currently at 13.97, aligning with the industry average, and it holds a Value Score of A [8] Earnings Estimates - The Zacks Consensus Estimate for KGC's earnings in 2025 and 2026 indicates a year-over-year increase of 92.7% and 9.5%, respectively, with EPS estimates trending higher over the past 60 days [9]