Why Is Kinross Gold (KGC) Up 12.7% Since Last Earnings Report?

Core Viewpoint - Kinross Gold's recent earnings report shows strong performance with significant year-over-year growth in profits and revenues, driven by rising gold prices, leading to positive investor sentiment and upward estimate revisions [2][3][12]. Financial Performance - Kinross reported a profit of $584.9 million or 48 cents per share in Q3 2025, up from $355.3 million or 29 cents per share in the same quarter last year [2]. - Adjusted earnings were 44 cents per share, an increase from 24 cents in the prior-year quarter, surpassing the Zacks Consensus Estimate of 39 cents [2]. - Revenues rose approximately 25.8% year over year to $1,802.1 million, exceeding the Zacks Consensus Estimate of $1,530.4 million, attributed to higher average realized gold prices [3]. Operational Performance - The company produced 503,862 gold equivalent ounces in the reported quarter, a decrease of 10.7% year over year, primarily due to reduced production at Tasiast and Fort Knox [4]. - Average realized gold prices were $3,460 per ounce, up 39.7% from the previous year, beating the estimate of $3,230 per ounce [4]. - The production cost of sales per gold equivalent ounce was $1,145, up 16.8% year over year, but below the estimate of $1,182 [5]. Cost and Margin Analysis - All-in-sustaining cost (AISC) per gold equivalent ounce sold rose nearly 20.2% year over year to $1,622, above the estimate of $1,515 [5]. - Margin per gold equivalent ounce sold was $2,310, an increase from $1,501 in the prior-year quarter [5]. Financial Position - Cash and cash equivalents were $1,721.7 million at the end of the quarter, reflecting a 264% year-over-year increase [6]. - Long-term debt remained flat year over year at $1,236.9 million [6]. Future Outlook - Kinross expects to produce slightly above the midpoint of 2 million gold equivalent ounces (+/- 5%) with a production cost of sales per gold equivalent ounce of $1,120 (+/- 5%) and AISC of $1,500 (+/- 5%) per ounce sold [7]. - The fourth-quarter production is anticipated to be slightly lower than 500,000 Au eq. oz., with annual production expected to remain stable at 2 million attributable Au eq. oz. (+/- 5%) in 2026 and 2027 [8]. Market Sentiment - Estimates for Kinross have trended upward, with a consensus estimate shift of 54.17% in the past month, indicating positive market sentiment [9]. - Kinross Gold holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [12]. Industry Comparison - Kinross Gold is part of the Zacks Mining - Gold industry, where competitor Newmont Corporation reported revenues of $5.52 billion, a year-over-year increase of 20% [13]. - Newmont's EPS for the same period was $1.71, compared to $0.81 a year ago, and it also holds a Zacks Rank 1 (Strong Buy) [14].