Kinross Gold (KGC) is well-positioned to reach its 2025 guidance, while significantly enhancing its free cash flow yield to higher cash returns, UBS Securities said in a note Monday. The firm remains constructive on gold, expecting prices to remain elevated at $3,500/oz in 2026.

The firm sees potential for $3.5 billion in shareholder returns through dividends and buybacks over the next three years at a 70% FCF payout, representing 15% to 20% of KGC's market cap, while still building a net cash position of over $1 billion.

According to the report, the production is expected to hold steady around 2 million ounces annually through 2030, supported by new developments like Great Bear and Lobo-Marte.

The firm estimates adjusted earnings of $1.44 per diluted share for 2025, and $1.73 and $1.49 for 2026, 2027 respectively. Analysts surveyed by FactSet expect $1.43 for 2025, $1.59 for 2026, and $1.41 for 2027.

UBS also highlights improved operational execution, cost control, and a lower-risk footprint following Kinross's exit from Russia and its focus on North American growth.

The firm initiated a buy rating on the stock and a $20 price target.

Shares of the company were up more than 5.8% in recent trading.

Price: 17.16, Change: +0.95, Percent Change: +5.86