Gold Prices Continue to Climb, This Leading Gold Stock Is Special

Published on: May 23, 2024
Author: Amy Liu

In this period of uncertainty, gold prices continue to climb, with many gold stocks, including Kinross Gold (TSX:K) in May, seeing their stock prices increase. However, not all stocks are performing as impressively as Kinross Gold, which surged by 21% in May alone. Let’s delve into what’s happening and whether this stock is likely to continue its upward trajectory.

Earnings Growth

Part of the surge in this stock followed the release of Kinross Gold’s first-quarter financial report, which showcased a stronger performance for this gold stock. According to the report, the net profit for the first quarter of 2024 increased by 19% to $107 million compared to the same period in 2023. Additionally, the profit margin for the first quarter of 2024 increased by 20%, indicating effective cost control by the company amidst favorable gold prices.

Kinross Gold also reported positive cash flow. The company’s adjusted operating cash flow increased to $424.9 million from $358.2 million in the first quarter of 2023, pointing to a healthy cash flow generation.

Furthermore, production has been progressing smoothly. Kinross Gold achieved a production of 527,399 gold equivalent ounces in the first quarter of 2024, meeting production guidance targets. Overall, it has been a robust quarter, but there is still more work to be done.

Project Developments

This quarter, Kinross Gold’s existing mines have seen significant progress, including the Bear Project acquired in February 2022. The company now sees this project as a future core asset, given its vast gold prospects, potentially becoming a large, long-life mine.


Given the recent growth, should investors now consider buying Kinross Gold stocks? As always, several factors need to be considered. If you believe that gold prices will continue to rise, Kinross Gold could be a good way to benefit from this trend.

Moreover, Kinross Gold stocks still appear to be of value, with a P/E ratio of 22.88, fitting the fair value. Therefore, the company likely still has room for growth.

However, gold prices are volatile. A significant decrease in gold prices could negatively impact stock prices. More importantly, unexpected events can occur in mines, and there is no guarantee on when the Bear Project will start operating. Therefore, as always, before investing in a stock, make sure to consider all factors and your risk tolerance.

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