We recently published a list of 11 Best Gold Mining Companies to Invest in Right Now. In this article, we are going to take a look at where Kinross Gold Corporation (NYSE:KGC) stands against other best gold mining companies to invest in right now.
According to the World Gold Council’s annual report, robust central bank purchases and rising investor interest drove global gold consumption to a new high in 2024. The Council described central banks’ appetite for gold as “insatiable,” a significant turning point as purchases exceeded 1,000 tons for the third consecutive year. Gold investment grew by 25%, mostly due to gold exchange-traded funds, reaching a four-year high of 1,180 tons. Meanwhile, rising purchasing activity in China and India contributed to the continued strong demand for gold bars and coins.
Physical demand for gold is still low in key consumer markets, despite its impressive performance. China and India have seen a decline in purchasing demand due to record-high prices. Gold sales for January hit a 10-month low, according to the Perth Mint, while silver sales fell 61% from the previous month. This implies that although there is a high demand for investments, the retail and jewelry industries are under pressure from high prices. In light of the aforementioned factors, Citi kept its 6–12 month projection at $3,000, unchanged from the prior forecast, but updated its short-term (0–3 months) price target for gold to $3,000 per ounce from $2,800. Additionally, the bank raised its average price forecast for 2025 from $2,800 to $2,900 per ounce. The bank noted:
“We expect gold to continue to rise as a hedge against growth and other risks, including actual and perceived rising growth risks, including trade wars, still-high interest rates weighing on growth, continued deterioration in the U.S. labor market, ex-U.S. currency devaluation risks, and potential U.S. equity drawdown risks.”
Earlier in the first week of February, US President Donald Trump sparked a trade war by following through on his promise to put tariffs on China. Meanwhile, the President gave Mexico and Canada each a one-month respite. In that regard, the new government seems determined to follow through on its promises of imposing tariffs, casting a pall over global economic growth expectations. According to Ricardo Evangelista, senior analyst at ActivTrades, such an act increases the attraction of safe-haven gold. Speaking on this issue, in combination with January’s job market report, he added:
“I anticipate the data will confirm a slowdown in the U.S. labor market… this scenario would reinforce dovish expectations for the Fed and provide support for gold prices.”
Our Methodology
To come up with our list of the 11 Best Gold Mining Companies to Invest in, we scoured the VanEck Gold Miners ETF holdings, a fund that invests a significant percentage of its total assets in common stocks and depositary receipts of companies in the gold mining industry. From that list, we narrowed down stocks based on the hedge fund sentiments surrounding them. These stocks are ranked in ascending order based on the number of hedge funds that hold their shares.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Aerial shot of a mine entrance, the bedrock of the company’s gold and silver extraction.
Kinross Gold Corporation (NYSE:KGC)
Number of Hedge Fund Holders: 41
Kinross Gold Corporation (NYSE:KGC) is one of Canada’s leading gold mining companies. Its operations cover the Americas, West Africa, and Russia, and include gold mining, property exploration, and acquisition, as well as ore extraction and processing.
The third quarter of 2024 proved to be an exceptional one for Kinross Gold Corporation (NYSE:KGC). The company generated a record $415 million in free cash flow, a 20% increase from the previous quarter, and produced 564,000 ounces of gold at a cost of less than $1,000 per ounce. In addition, Kinross Gold Corporation (NYSE:KGC) paid back $650 million of its $1 billion term loan, with more repayments scheduled. With an estimated CapEx of $1.05 billion for 2024, the company expects to produce 2 million ounces in 2025, a slight decrease from 2.1 million ounces the year before.
On January 27, BofA upgraded Kinross Gold Corporation (NYSE:KGC) from Underperform to Buy with a price objective of $12.75, up from $9.25. Lawson Winder, one of the BofA analysts, has dramatically raised his projections for 2026 profits per share and output to 2 million gold equivalent ounces, citing Kinross Gold’s strong position entering Q4 2024 results with possible catalysts in 2025. According to Winder, the company seems to be disciplined on this front, despite market fears that Kinross would participate in a corporate acquisition. He also sees the possibility of the company increasing capital returns in 2025 through a stock repurchase.
Overall, KGC ranks 4th on our list of best gold mining companies to invest in right now. While we acknowledge the potential of KGC, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KGC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
