A Member of Pat McKeough’s Inner Circle recently asked for his advice on Kinross Gold, a leading senior global gold producer operating a diverse portfolio of mines and development projects across the United States, Brazil, Mauritania, Chile, and Canada.
Pat likes the company’s exceptional ability to convert high gold prices into tangible earnings and shareholder value. Unlike many peers who are struggling with maturing mines, this producer has a clear internal growth roadmap that doesn’t rely on expensive acquisitions.
Kinross Gold Corp. (Symbol K on Toronto; www.kinross.com) is a senior gold mining company with a diverse portfolio of mines and projects.
In the U.S., the company operates mines in Nevada (Round Mountain and Bald Mountain) and in Alaska (Fort Knox as well as the Manh Choh development project). In Canada, it owns the Great Bear development project in Red Lake, Ontario, while in Brazil, Kinross operates Paracatur, a mine in the Minas Gerais region. Also in South America, it operates the La Coipa mine in the Atacama region of Chile, along with the large Lobo-Marte development project. In Africa, the company’s Tasiast mine in Mauritania benefits from expanding production.
Kinross reported revenue of $4.21 billion in 2020. (All figures except share price and market cap in U.S. dollars.) Revenue dropped 38.3% in 2021 to $2.60 billion due largely to a mill fire at Tasiast. In 2022, revenue then soared 32.9% to $3.46 billion, as Tasiast came back online. Revenue rose again in 2023, climbing 22.7% to $4.24 billion, as production restarted at La Coipa after a decade of inactivity. In 2024, it jumped another 21.4%, to $5.15 billion, on higher gold prices. In 2025, revenue climbed a further 36.9%, to $7.05 billion.
Overall earnings before one-time items plummeted 78.2%, from $966.8 million, or $0.77 a share, in 2020 to $210.8 million, or $0.17 a share, in 2021, because of the Tasiast fire. In 2022, earnings jumped 34.3% to $283.1 million, or $0.22 a share, on lower costs and higher production. Earnings then soared 90.7% to $539.8 million, or $0.44 a share, in 2023, on the higher revenue and improved efficiency. In 2024, earnings jumped another 55.3% to $838.3 million, or $0.68 a share, as metal sales rose faster than costs. In 2025, earnings soared a further 167.7%, to $2.2 billion, or $1.84 a share.
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For the three months ended December 31, 2025, Kinross’ revenue jumped 42.9%, to $2.02 billion from $1.42 billion a year earlier. Revenue was higher due to a 55.6% increase in the average realized price for an ounce of gold, to $4,144 from $2,663.
Excluding one-time items, the company earned $809.3 million, or $0.67 a share, in the latest quarter. That was up 237.2% from $240.0 million, or $0.20 a share. Earnings rose on the higher revenue plus strong cost containment efforts.
Kinross’s expansion prospects will let the firm gain even more from record gold prices
From 2014 to 2019, Kinross stopped paying dividends. But in 2020, the company reintroduced a $0.03-a-share payment to shareholders. It has not raised the dividend rate since then, and the shares currently yield 0.4%.
Kinross’s outlook is positive, with the potential to boost output at its current mines as well as through its development projects. That includes the Great Bear project in Ontario, where drilling results continue to exceed expectations by adding more reserves.
Like most gold stocks, Kinross is heavily influenced by gold prices. But its steady earnings and cash flow, plus its prospects for increased production, give it speculative appeal.
Recommendation in Pat’s Inner Circle: Kinross is okay for aggressive investors to hold.
