Up 30% in August, Is Kinross Gold Still a Buy?

Canadian gold stocks are surging as bullion prints record highs. One of the market’s most spectacular runs in August, Kinross Gold (TSX:K) stock shot up nearly 30% in a single month, sprinting to fresh 52-week highs. For Kinross shareholders, the ride has been phenomenal, with the stock delivering a staggering 134.9% total return so far in 2025. But after such a powerful surge, investors who missed the rally might wonder: Did they miss the boat, or is Kinross Gold stock still a compelling investment opportunity?

Bullion and silver are propelling Kinross Gold’s rally

Powering Kinross Gold stock’s rally is the glittering metal itself. Gold has been on a record-breaking tear, soaring over 38% year to date to trade above US$3,600 an ounce. Silver, a significant byproduct for Kinross, isn’t far behind, up 43% so far this year. Gold’s run since 2024 is fueled by its classic role as a safe-haven asset.

With geopolitical tensions simmering and market disruptions ongoing, investor appetite for this timeless store of value remains ravenous in 2025. A persistent silver supply shortage adds to Kinross’s bullish potential. If you believe these prices have a solid foundation, then Kinross’s story is just getting started.

Operating leverage in play for explosive returns

The real magic behind Kinross Gold’s explosive results in 2025 is a concept called operational leverage. In simple terms, for a low-cost gold producer like Kinross, every extra dollar the gold price climbs falls almost directly to the bottom line.

The company’s latest earnings report was a masterclass in this effect. For the first half of 2025, Kinross reported adjusted earnings per share that skyrocketed 208% to US$0.74 despite a 40% increase in revenue. Even more impressive is its cost efficiency. The company produced gold at an all-in sustaining cost (AISC), a key metric that captures the total costs of producing an ounce of gold, of just US$1,424 during the first six months of 2025. With gold prices holding well above US$3,600 in September, the current profit margin is nothing short of enormous.

Stable production and operational excellence are generating a tidal wave of cash. Kinross reported adjusted operating cash flow of US$1.5 billion in the first six months of the year, strengthening its balance sheet. Its net debt has been slashed to a mere US$100 million, and the company could find itself in a net cash position by the end of this quarter. Financial strength like this provides incredible flexibility and, crucially, the means to reward shareholders directly.

And that’s what management is doing.

Kinross Gold’s shareholder-friendly policies are attractive in 2025

Kinross is in the midst of a massive share buyback program, targeting US$500 million in stock repurchases for 2025. Buying back shares reduces the total count outstanding, making each remaining share more valuable, a direct benefit to every investor who holds on. This commitment to returning capital makes a strong case for Kinross as a top Canadian gold stock to buy in September, even after its impressive year-to-date run.

Through share repurchases, the gold miner has reduced its outstanding shares by 5.2% over the past three years, reducing total claims on its future earnings and cash flow. Each remaining share is worth more.

Is Kinross Gold stock still a buy?

Naturally, seeing a stock at 52-week highs gives any savvy investor pause. Analyst price targets suggest a potential pullback. However, context is key. Even after its monumental run, Kinross stock trades at a historical price-to-earnings (P/E) multiple of 18.2, which is significantly cheaper than the industry average of 25.3. While the stock price has run far, its earnings have run even faster, potentially leaving it reasonably priced for the value it offers.

Investors bullish on gold maintaining its lustre may still buy Kinross Gold stock with confidence. The gold miner’s story is about a well-managed low-cost producer converting higher gold prices into explosive cash flow growth and returning it to shareholders. While buying on pullbacks is always a prudent move, waiting for one that may never come could mean missing out on a golden opportunity.

That said, gold remains a volatile precious metal prone to speculative behaviour. Beware the risk of softer gold prices on the trade.