Summa Silver Corp. (TSXV: SSVR, OTC: SSVRF, FRA: 48X)
Silver Lives Here
Gold stocks were sold off by investors as fading safe-haven demand caused gold prices to plummet 3% on Monday (12 May). On the Toronto Stock Exchange, shares of Kinross Gold (TSX:K) and Barrick Mining Corporation (TSX:ABX) were down 8.7 per cent and 6 per cent, respectively, as of Monday’s close.
Kinross Gold shares experienced a pull-up last week after the company reported first-quarter FY2025 results that showed a tripling of profits. Benefiting from strong gold prices, improving margins and astute financial management, the gold producer’s ability to generate cash and create value for shareholders remains outstanding, even as it continues to face upward pressure on costs.
In fact, a recently released list of the 12 most valued gold stocks by billionaires includes Kinross Gold. According to a survey of billionaires released by UBS 2024, 40% of wealthy investors intend to expand their holdings of gold and other precious metals in the coming year.
Also, eight of Forbes’ top 100 billionaires built their fortunes in the mining and metals industry, underscoring the sector’s continued profitability. As of April 2025, a total of 12 billionaire investors own Kinross Gold stock, according to the report. Meanwhile, the number of hedge funds holding this gold stock is 42.
Kinross Gold’s primary business is the acquisition, exploration, and development of gold properties in the United States, Brazil, Chile, Canada, and Mauritania. It also produces silver and engages in the reclamation of gold properties. Billionaires accumulated $598.4 million worth of Kinross Gold shares, indicating that investors are confident in the company’s sound foundation and future expansion.
The company reported production of 512,000 ounces of gold equivalent in the first quarter of 2025 and net earnings of C$368 million, or C$0.30 per share, a significant increase on the first quarter 2024 net earnings of C$107 million and C$0.09 per share.
Revenues increased to C$1.5 billion, up 38 per cent year-on-year.The average Kinross gold sales price was $2,857 per ounce in the first quarter of 2025, a significant spike from $2,070 a year earlier.
It’s worth pointing out that the company’s gross margins improved despite higher production costs. Gross margin per ounce of gold sold increased to $1,814, up 67 per cent from a year ago, helping Kinross offset its highest all-in sustaining costs ($1,355 per ounce) in nearly a decade.
Kinross also made real progress on its balance sheet. Operating cash flow increased to C$597 million from C$374 million a year ago. Free cash flow more than doubled to C$370 million, giving Kinross the flexibility to reduce debt and return capital to shareholders.
The company repaid the remaining C$200 million term loan during the quarter, bringing total net debt down to approximately C$540 million. The board has approved the repurchase of up to 110 million shares. As of early April, Kinross had repurchased about C$60 million worth of shares and plans to repurchase at least C$500 million in shares this year.
Not surprisingly, investors are pleased with the company’s solid financial position, growing production and disciplined approach to returning capital, as evidenced by the immediate rise in the share price following the earnings report. As a result, the recent sell-off that followed the fall in the gold price could be seen as a buying opportunity.
