Kinross Gold (TSX: K) has posted its results for Q1 2025, reporting quarterly revenue of $1.50 billion, a 38% jump from $1.08 billion in Q1 2024. This is driven by a spike in the average realized gold price to $2,857 per ounce.

However, production remained flat, with attributable output slipping 3% to 512,088 gold equivalent ounces from 527,399 ounces last year. Notably, while sales volume was relatively unchanged, the company’s production cost of sales rose 6% year-over-year to $1,043 per ounce, and attributable AISC also climbed 3% to $1,355 per ounce, now sitting at their highest level in nearly a decade.

Cost of sales per ounce spiked most severely at La Coipa (+56%), rising to $1,147 per ounce from $733, largely due to lower silver output and higher royalties. US operations, despite volume gains, still posted a blended cost of $1,240 per ounce, dragged by inefficiencies at Round Mountain.

Gross margin per ounce also surged by 67% to $1,814, giving rise to the effect of the rising prices.

Operating earnings rose to $570.4 million, up nearly 3x from $193.2 million, while adjusted net earnings rose to $364 million (or $0.30 per share), beating consensus estimates of $0.21.

The high gold prices led to $368 million in net earnings — a more than threefold increase from the $107 million reported a year ago. This translates to $0.30 earnings per share, a jump from last year’s $0.10 per share.

Operating cash flow hit $597.1 million, up from $374.4 million, with adjusted operating cash flow climbing 59% to $676.2 million. Free cash flow more than doubled to $370.8 million, though capital expenditures declined to $204.1 million from $232.1 million in Q1 2024.

Kinross repaid the final $200 million on its term loan during the quarter, leaving $694.6 million in cash. Net debt dropped to $540 million, prompting Moody’s to revise Kinross’ outlook to positive and reaffirm its credit rating.

The firm paid out $36.9 million in dividends and repurchased $60 million in shares under a revived buyback plan, targeting a minimum of $500 million in repurchases this year if gold prices hold.

Kinross said it remains on track to meet its full-year production and cost guidance of 2.0 million ounces at an AISC of $1,500 (+/-5%).

Kinross Gold last traded at $21.00 on the TSX.

Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.