Kinross Gold: Strong Q2 Results
Kinross Gold is one of North America’s largest gold producers. The Canadian company has now released its quarterly results and impressed the markets. Revenue rose by nearly 30% year-over-year to USD 2.24 billion. Net income surged disproportionately by 59% to USD 844.2 million. With adjusted earnings per share of USD 0.71, the company also beat market expectations. In the first half of the year, Kinross generated free cash flow of more than USD 1.5 billion. The company currently has a strong balance sheet with a net cash position of USD 1.9 billion and total debt of USD 739 million.
These figures provide a solid foundation. Management plans to continue returning 40% of free cash flow to shareholders this year through dividends and share buybacks. During the second quarter, Kinross repurchased USD 230 million worth of its own shares. In addition, management has set a regular quarterly dividend of USD 0.04 per share.
Gold production stood out in the financial results. In Q2, Kinross saw a slight decline to 492,326 ounces of gold equivalent. All-In Sustaining Costs (AISC) were in line with expectations at USD 1,821 per ounce. For the full year, however, the company expects production costs to rise slightly due to higher operating expenses. The production guidance of 2 million ounces of gold for the full year was confirmed.
Strategically, many are focusing on the construction of the Great Bear mine in Ontario, where the target for first gold production remains the end of 2029. Kinross shares have taken a significant hit since their peak in early March, losing roughly 40%. At current levels, the stock trades at a forward P/E ratio of about 10, which is well below the long-term average. The analyst consensus is currently predominantly “Buy”, and depending on the price target, the stock could gain around 30% or more from its current price.
Lahontan Gold: All Eyes on the Upcoming Resource Update
Gold prices are currently providing investors with few clear signals on market direction. As a result, this may be an opportune time to focus on gold stocks with the potential for a re-rating. Such re-ratings often occur when a company transitions from being primarily an exploration and development company to becoming a gold producer. Lahontan Gold appears to be approaching this inflection point and could receive a meaningfully higher market valuation over the next 18 months. The company is targeting the start of construction at its Santa Fe Project in Nevada in 2027, with gold production expected to commence before the end of the year.
Santa Fe is a historic mine and is located on the famous Walker Lane Trend. Between August 1988 and 1995, a total of 359,202 ounces of gold and 702,067 ounces of silver were mined from this open-pit mine. With the subsequent collapse of the gold price, operations were suspended, and the property fell into obscurity. Lahontan Gold is now building on this historical data and has also invested heavily in exploring the deposit. The company has already conducted a resource estimate in accordance with the Canadian NI 43-101 standard, arriving at approximately 1.95 million ounces of gold equivalent, of which 1.54 million ounces are already classified in the higher-value “Indicated” category. An updated study is scheduled to be published during this quarter. The new resource estimate will also lay the groundwork for an update to the preliminary economic assessment (PEA). According to the company, this is expected to follow in late summer.
An estimate from December 2024 is already available here as well. At that time, annual production was projected to be between 70,000 and 80,000 ounces of gold. The mine life was estimated at eight years. Since extensive drilling has taken place since then and the resource is likely to have grown, the new PEA should present better data, especially since the gold price is much higher today than it was 1.5 years ago.
In an interview with Lyndsay Malchuk of the IIF, CEO Kimberly Ann discusses the key milestones and developments expected at Lahontan Gold over the coming months.
https://www.youtube.com/watch?v=pRq4WtH82Rc
Lahontan Gold currently has a market capitalization of approximately USD 138 million. As the potential start of construction approaches next year, the stock should gradually see a re-rating. This presents investors with an opportunity to use Lahontan’s recent correction as an attractive entry point!
AngloGold Ashanti: Share Buybacks & Costs in Focus
At AngloGold Ashanti, performance has been rather mediocre following a historic first quarter. Rising costs are weighing on sentiment. The company, now headquartered in Denver, reported revenue of USD 3.1 billion—significantly higher than in the same quarter last year. However, analysts had expected slightly more. Net income, at USD 1 billion or USD 1.96 per share, was also slightly below market expectations. With free cash flow of USD 727 million for the second quarter (+36% YoY), the company is in a solid position, especially since the group can now report a net cash position of USD 991 million for the first time—despite bond buybacks totaling USD 666 million.
However, rising prices are currently weighing on the company. Energy and operating supplies are becoming more expensive, and rising global inflation is making itself felt. As a result, costs per ounce produced rose by a whopping 22% in the second quarter to USD 2,039 per ounce (AISC). This puts the company in a relatively poor position compared to the rest of the industry.
Meanwhile, the shareholders themselves provided some good news. On July 23, 2026, with their approval, a share repurchase program worth up to USD 2 billion was authorized. Now all that is needed is regulatory approval for the program to begin. In addition, an interim dividend of USD 0.72 per share will be paid for the past quarter. In general, management aims to “return more than 50% of free cash flow to shareholders via dividends and buybacks.”
Furthermore, production is expected to pick up again in the second half of the year. Management therefore expects costs per ounce to decline once more. Despite the minor disappointments in the first half of the year, analysts remain optimistic and predominantly recommend “Buy” or “Outperform” in their assessments. The consensus price target is around USD 120, which is about 50% above the current share price. With a forward P/E ratio of 10 to 12, the stock is not expensive, and the dividend yield of more than 4% is impressive. But one thing is clear: in the second half of the year, management must deliver!
Kinross Gold and AngloGold Ashanti are currently suffering from rising production costs but continue to benefit from high profit margins. For AngloGold, approval of the proposed share buyback program should also help the share price. As for Lahontan Gold, the transition from developer to producer is becoming evident in its operations, though not yet reflected in its share price. This offers bold investors an opportunity to buy in.
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