Core Insights - Kinross Gold Corporation's (KGC) shares have increased by 212.3% over the past year, significantly outperforming the Zacks Mining – Gold industry's growth of 155.6% and the S&P 500's rise of 19.7% [1][2] - The surge in KGC's stock price is attributed to solid earnings performance driven by higher realized gold prices and strong operating margins, alongside a favorable macroeconomic environment [2][7] Stock Performance - KGC's stock has been trading above the 200-day simple moving average (SMA) since March 6, 2024, indicating a bullish trend [5] - The stock is also trading above its 50-day SMA, which is higher than the 200-day moving average, further supporting the bullish outlook [5] Financial Performance - KGC reported record free cash flow of approximately $686.7 million for the third quarter of 2025, a 66% year-over-year increase, driven by strong gold prices and operational performance [13] - The company ended the third quarter of 2025 with robust liquidity of around $3.4 billion, including cash and cash equivalents of approximately $1.7 billion [13] Development Projects - KGC has a strong production profile with key development projects such as Great Bear in Ontario and Round Mountain Phase X in Nevada, which are expected to enhance production and cash flow [10][11] - Tasiast and Paracatu, KGC's two largest assets, are key contributors to cash flow generation, with Tasiast achieving record annual production and cash flow in 2024 [12] Shareholder Returns - KGC reactivated its share buyback program in April 2025, repurchasing shares worth approximately $405 million as of November 4, 2025, and plans to return around $750 million through dividends and repurchases for the full year [15] - The company has increased its quarterly dividend by 17% to 3.5 cents per common share, indicating a commitment to returning value to shareholders [15][16] Market Outlook - Analysts have raised earnings estimates for KGC over the past 60 days, with the Zacks Consensus Estimate for 2025 earnings pegged at $1.68, reflecting a year-over-year growth of 147.1% [20] - KGC is currently trading at a forward price/earnings ratio of 14.64X, which is a discount compared to the industry average of 15.38X, indicating potential value for investors [23] Investment Thesis - KGC is positioned as a compelling investment opportunity due to its strong fundamentals, expanding production pipeline, and robust financial health, making it a prudent choice for investors seeking to capitalize on favorable market conditions [24]

Project Highlights - Three US-based organic growth projects are expected to add a cumulative Net Present Value (NPV) of $41 billion at a gold price of $4,300/oz[13] - The combined Internal Rate of Return (IRR) for these projects is projected to be 55% at a gold price of $4,300/oz[13] - The projects are expected to have a quick payback period[13] - The average incremental All-In Sustaining Cost (AISC) for these projects is estimated to be approximately $1,650/oz[13] - The projects are expected to contribute nearly 3 million ounces of gold equivalent production over their Life of Mine (LOM)[13] Round Mountain - Phase X - Phase X is projected to have an NPV of $1881 million and an IRR of 67% at a gold price of $4,300/oz[22] - The project is expected to produce 14 million ounces of gold equivalent over its LOM[22] - The average grade is expected to be 30 g/t[22] Curlew - Curlew is projected to have an NPV of $1171 million and an IRR of 44% at a gold price of $4,300/oz[61] - The project is expected to produce 09 million ounces of gold equivalent over its LOM[61] - The average grade is expected to be 58 g/t[61] Bald Mountain - Redbird 2 - Redbird 2 is projected to have an NPV of $969 million and an IRR of 58% at a gold price of $4,300/oz[99] - The project is expected to produce 064 million ounces of gold equivalent over its LOM[99] - The average grade is expected to be 05 g/t[99]

Core Viewpoint - Kinross Gold Corporation is advancing the construction of three organic growth projects, which are expected to significantly enhance production, extend mine life, and improve long-term cost efficiency within its U.S. portfolio, contributing a total of 3 million ounces of life-of-mine production [1][7]. Group 1: Project Overview - The three projects include Round Mountain Phase X, Bald Mountain Redbird 2, and Kettle River-Curlew, all of which are anticipated to extend mine life and enhance production capabilities [1][7]. - The projects are expected to maintain a production profile of 2 million gold equivalent ounces per year, with specific contributions of 400,000 ounces per year from 2029 to 2031 and a total of 3 million ounces from 2028 to 2038 [5][7]. Group 2: Financial Highlights - The combined internal rate of return (IRR) for the projects is projected at 55%, with a cumulative post-tax net present value (NPV) exceeding $4.1 billion at a gold price of $4,300 per ounce [5][7]. - Capital expenditures for the projects are forecasted at approximately $425 million in 2026, with total attributable capital expenditures for the global portfolio expected to be around $1.5 billion [5][63]. Group 3: Round Mountain Phase X Details - The Phase X project is expected to produce approximately 1.4 million gold equivalent ounces over an initial 11-year mine life, extending production at Round Mountain until 2038, with an average annual production of about 140,000 ounces from 2029 to 2037 [13][15]. - The project will have an all-in sustaining cost (AISC) of $1,680 per gold equivalent ounce, which is expected to lower the cost profile at Round Mountain [13][15]. Group 4: Kettle River-Curlew Highlights - The Curlew project is projected to produce approximately 940,000 ounces over an initial 11-year mine life, averaging about 100,000 ounces per year for the first five years [34][39]. - The average mining grade is expected to be 5.8 g/t, with an AISC of $1,726 per ounce over the life of the mine [34][39]. Group 5: Bald Mountain Redbird 2 Highlights - The Redbird 2 project is expected to yield approximately 640,000 ounces, with first production anticipated in 2028 and an average production of about 155,000 ounces per year from 2028 to 2031 [49][51]. - The project will have an AISC of $1,466 per ounce, benefiting from existing infrastructure and economies of scale [51][53]. Group 6: Exploration and Upside Potential - There is significant potential for resource extensions and further exploration at all three projects, with existing intercepts indicating higher grades and improved mineability [29][45]. - The company is focused on leveraging its existing infrastructure and historical production capabilities to maximize the potential of these projects [33][39].

Industry Overview - Gold and gold mining stocks are expected to continue strong performance due to structural shifts in global markets, with central banks and institutional investors increasing their positions [2][4] - The rally is characterized by shallow corrections, with aggressive buying limiting downside risks and allowing for quick reassertion of the uptrend [3] Gold Mining Stocks - Gold mining stocks provide leverage to gold prices, with fixed costs allowing incremental gains in gold prices to significantly boost miners' cash flow and earnings [5] - Leading miners have prioritized balance sheet discipline, focusing on capital returns, debt reduction, and operational efficiency, which reduces downside risk while preserving upside potential [6][8] Specific Companies - Kinross Gold (KGC) is projected to grow earnings at an annual rate of 36.5% over the next three to five years, trading at a forward earnings multiple of 14.5x, with a PEG ratio below 1 indicating undervaluation [9][10] - Agnico Eagle Mines (AEM) is expected to grow earnings at 33.6% annually, with a forward earnings multiple of 20.2x, supported by a strong portfolio of low-cost mines [11] - Royal Gold (RGLD) operates on a royalty and streaming model, offering lower operating risk and higher margins, with a forward earnings multiple of 23.4x and projected earnings growth of 30.9% [12][13] Investment Outlook - Kinross, Agnico Eagle, and Royal Gold are well-positioned for investors seeking exposure to gold, combining strong earnings growth, reasonable valuations, and favorable Zacks Ranks [14]

Core Insights - Kinross Gold Corporation (KGC) reported a significant increase in operating margin in Q3, attributed to rising gold prices, effective cost management, and strong production performance [1][7] - The margin per gold equivalent ounce sold increased to $2,310, reflecting a 54% year-over-year growth, which outpaced the 40% rise in average realized gold price to $3,460 per ounce [1][7] Financial Performance - KGC generated record free cash flow of approximately $686.7 million in Q3, a 66% increase year-over-year, driven by strong gold prices and operational performance [2][7] - For the first nine months of 2025, free cash flow reached around $1.7 billion, with the Paracatu and Tasiast mines contributing significantly to this performance [2] Future Outlook - The company expects to maintain strong margin performance in Q4 due to ongoing cost-control measures and sustained strength in gold prices [3][7] - KGC is prioritizing margin improvement to enhance cash flow, which is anticipated to support shareholder returns [3] Industry Comparison - Agnico Eagle Mines Limited (AEM) also reported record operating margins in Q3, with a 62% year-over-year increase, benefiting from higher realized gold prices [4] - Newmont Corporation (NEM) achieved a reduction in all-in sustaining costs (AISC) to $1,566 per ounce, a 2% decrease from the previous quarter, indicating a commitment to cost discipline and productivity improvements [5] Stock Performance - KGC's shares have increased by 111.3% over the past six months, outperforming the Zacks Mining – Gold industry, which rose by 74% [6] - The Zacks Consensus Estimate for KGC's earnings in 2025 and 2026 indicates a year-over-year rise of 147.1% and 35.2%, respectively, with EPS estimates trending higher [8] Valuation Metrics - KGC is currently trading at a forward 12-month earnings multiple of 14.49, which is a 1.2% discount to the industry average of 14.66 [9] - The company holds a Value Score of B, indicating a favorable valuation relative to its peers [9]

Core Viewpoint - Kinross Gold (KGC) is positioned to continue its earnings-beat streak, having recently surpassed earnings estimates in its last two reports with an average surprise of 23.08% [1] Earnings Performance - For the most recent quarter, Kinross Gold reported earnings of $0.44 per share, exceeding the expected $0.39 per share, resulting in a surprise of 12.82% [2] - In the previous quarter, the company also beat expectations, reporting $0.44 per share against a consensus estimate of $0.33 per share, which was a surprise of 33.33% [2] Earnings Estimates and Predictions - Recent estimates for Kinross Gold have been revised upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong potential for another earnings beat [5] - The current Earnings ESP for Kinross Gold is +4.00%, reflecting increased analyst optimism regarding its near-term earnings potential [8] Zacks Rank and Predictive Power - Kinross Gold holds a Zacks Rank of 1 (Strong Buy), which, when combined with its positive Earnings ESP, suggests a high likelihood of another earnings beat [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time [6]

Core Insights - Major U.S. stock market indices closed positively on January 9, 2026, following December jobs data, with unemployment rate decreasing to 4.4% but job additions missing expectations [1] Group 1: Market Trends - Investors are shifting towards dividend-growth stocks due to a preference for quality and visibility amid economic uncertainty, as these stocks signal robust cash flows [2][9] - Stocks with a strong history of year-over-year dividend growth are seen as better investments for capital appreciation compared to simple dividend-paying stocks [3][6] Group 2: Characteristics of Dividend Growth Stocks - Dividend growth stocks belong to mature companies, providing a hedge against market volatility and economic uncertainty while offering downside protection through consistent payout increases [4] - These stocks typically exhibit superior fundamentals, including sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [5] Group 3: Selected Dividend Growth Stocks - Woodward Inc. (WWD): Expected revenue growth of 11.2% for fiscal 2026, long-term earnings growth rate of 15.20%, and annual dividend yield of 0.35% [10][11] - Cardinal Health (CAH): Projected revenue growth of 16.2% for fiscal 2026, long-term earnings growth rate of 13.90%, and annual dividend yield of 1.02% [12] - Fox Corp. (FOX): Anticipated revenue growth of 3.6% for fiscal 2027, long-term earnings growth rate of 10.10%, and annual dividend yield of 0.84% [13] - Kinross Gold (KGC): Expected revenue growth of 11% for fiscal 2026, long-term earnings growth rate of 36.5%, and annual dividend yield of 0.45% [14] - Donaldson (DCI): Projected revenue growth of 3.5% for fiscal 2026, long-term earnings growth rate of 10%, and annual dividend yield of 1.26% [15]

Core Viewpoint - Kinross Gold Corporation will provide an update on its Round Mountain Phase X, Kettle River-Curlew, and Bald Mountain Redbird 2 projects on January 15, 2026, followed by a virtual presentation and Q&A session [1]. Group 1: Presentation Details - The virtual presentation will take place at 9:00 a.m. EST on January 15, 2026 [1]. - A webcast link for the presentation is provided, along with toll-free numbers for Canada and the US, and an international number for participants outside these regions [2]. - A replay of the presentation will be available for 30 days after the call, with specific links and access details provided [2]. Group 2: Company Overview - Kinross Gold Corporation is a Canadian-based global senior gold mining company with operations in the United States, Brazil, Mauritania, Chile, and Canada [3]. - The company focuses on delivering value through responsible mining, operational excellence, disciplined growth, and maintaining a strong balance sheet [3]. - Kinross is listed on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC) [3].

Group 1: Market Performance - The U.S. stock market saw all three major indices rise, with the Dow Jones Industrial Average reaching a new historical high, approaching the 50,000 mark, closing at 49,462.08 points, up 0.99% [3] - The Philadelphia Semiconductor Index increased by 2.75%, setting a new historical high, with notable gains in chip stocks such as Microchip Technology up over 11%, Micron Technology up over 10%, and NXP Semiconductors up over 9% [5][6] Group 2: Federal Reserve Insights - Federal Reserve Governor Milan stated that the Fed should lower interest rates by more than 100 basis points this year, as economic data trends may support further rate cuts [5] - Milan noted that core inflation has returned to around the Fed's 2% target, and he expects strong economic growth in the U.S. this year [5] Group 3: Commodity Prices - Silver prices surged again, with COMEX silver futures breaking the $80 per ounce mark, reflecting a rise of approximately 6% [8] - Gold prices also saw a slight increase, with COMEX gold futures surpassing $4,500 per ounce, up over 1% [8]

Investment Strategy Overview - The investment approach emphasizes Richard Driehaus' "buy high and sell higher" theory, which aims to capture stocks with strong momentum for further upside potential [1] - Stocks like Kinross Gold Corporation (KGC) and Willdan Group, Inc. (WLDN) have shown significant upward trends, with share prices increasing by 203.8% and 172.2% respectively last year [2] Driehaus Strategy Details - Driehaus prefers investing in stocks that are increasing in price rather than those in decline, focusing on momentum indicators such as the 50-day moving average [3] - The strategy incorporates a positive relative strength indicator, suggesting that stocks trading above their 50-day moving average are in an uptrend [4] Screening Parameters - The strategy utilizes specific screening parameters, including a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B, to identify stocks with the best upside potential [6] - Key metrics include last 5-year average EPS growth rates above 2%, trailing 12-month EPS growth greater than 0, and a positive percentage change in the 50-day moving average [8] Company Insights - **Kinross Gold Corporation (KGC)**: Engaged in gold exploration and development across multiple countries, expected to benefit from rising gold prices and strong cash flows, with a trailing four-quarter earnings surprise of 17.4% on average [10] - **Willdan Group, Inc. (WLDN)**: Provides professional and consulting services, leveraging AI-focused infrastructure acquisitions to enhance profits, with a trailing four-quarter earnings surprise of 58.1% on average [11]