Kinross Gold's Profits to Shine Despite Rising Costs Ahead

Kinross Gold Corporation's (KGC) production costs of sales per ounce rose 4% YoY to $1,074 in Q2, while all-in-sustaining costs (AISC) increased 8% YoY to $1,493 per gold equivalent ounce sold. The company expects full-year AISC per gold equivalent ounce to reach $1,500 and production cash costs to be around $1,120 per ounce. Rival Barrick Mining Corporation's (B) and Newmont Corporation's (NEM) AISC also rose on a YoY basis. KGC's shares have surged 112.9% YTD, driven by the gold price rally.

Kinross Gold Corporation (KGC) reported a significant increase in production costs during the second quarter of 2025. The company's costs of sales per ounce rose by 4% year-over-year (YoY) to $1,074. Concurrently, all-in-sustaining costs (AISC), a key indicator of cost efficiency in mining, increased by nearly 8% YoY to $1,493 per gold equivalent ounce sold [1].

Kinross Gold's guidance for the full year 2025 indicates that AISC per gold equivalent ounce is expected to reach $1,500, with production cash costs projected to be around $1,120 per ounce. These increases are attributed to inflationary pressures and accounting changes that recharacterize stripping costs at certain sites as operating costs. The company anticipates further cost increases in the remaining quarters of 2025 due to weaker expected production [1].

Rival companies also experienced cost pressures. Barrick Mining Corporation (B) reported cash costs per ounce of gold and AISC increasing by around 17% and 12% YoY, respectively, in the second quarter. Newmont Corporation (NEM) saw gold costs applicable to sales (CAS) rise by around 6% YoY to $1,215 per ounce, and AISC for gold increase by around 2% YoY to $1,593 per ounce [1].

Despite the rising costs, Kinross Gold's shares have surged 112.9% year-to-date (YTD), largely driven by the gold price rally. The company's forward 12-month earnings multiple of 13.97 is in line with the industry average, and it carries a Value Score of A. Analysts expect a year-over-year rise of 92.7% and 9.5% in earnings for 2025 and 2026, respectively [1].

References:
[1] https://finance.yahoo.com/news/kinross-golds-costs-rise-ahead-111900126.html