Gold futures just had their worst week in 15 years, according to CNBC. The drawdown might seem like a reason to avoid mining stocks. I think it’s the opposite.
Gold is down over 10% in the past week, as oil prices soared over $110 a barrel. Rising oil prices could push inflation higher and delay interest rate cuts globally in the near term. Gold and interest rates have an inverse relationship, which has accelerated the sell-off in the yellow metal.
Canadian mining stocks such as Kinross Gold (TSX:K) and Barrick Mining (TSX:ABX) are both sitting roughly 30% below their all-time highs. Both generated record cash flows in 2025. Both have strong balance sheets and growing production pipelines.
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Kinross Gold is a top TSX stock to own
Kinross is not a mining company in distress. It is a lean, cash-generating machine that has been rewarding shareholders while building toward a bigger production future.
In Q4, Kinross reported free cash flow of US$2.5 billion and an operating cash flow of US$3.6 billion. It produced just over two million ounces of gold in 2025, in line with guidance, with margins expanding 66% even as the gold price rose 43%.
Kinross ended 2025 with US$1.7 billion in cash and approximately US$1 billion in net cash. It has no near-term debt maturities, and US$500 million isn’t due until 2033. Moody’s upgraded its credit rating to Baa2 in December 2025.
On capital returns, management is targeting 40% of FCF back to shareholders in 2026 through dividends and buybacks. Notably, the dividend was raised 33% in total across two consecutive increases.
The growth story is equally compelling.
- Three high-return U.S. projects: Phase X at Round Mountain, Curlew, and Redbird 2 at Bald Mountain, are now moving to construction.
- Together, they carry an average all-in sustaining cost (AISC) of US$1,660 per ounce, a combined net present value (NPV) of US$4.3 billion, and an internal rate of return (IRR) averaging 59% at US$4,500 per ounce of gold. All three are expected to be online in 2028.
- The Great Bear project in Ontario is advancing toward first gold production in late 2029, and it was recently designated under Ontario’s streamlined 1 Project, 1 Process permitting framework.
Barrick Mining belongs in your portfolio
In 2025, Barrick Gold reported a free cash flow of US$3.9 billion, an increase of almost 200% year over year. The board raised a 40% dividend increase in Q4, bringing the quarterly payout to US$0.175 per share. Barrick’s special dividend of US$0.42 per share was up 140% sequentially.
President and CEO Mark Hill confirmed that Barrick ended 2025 with US$2 billion in net cash. The company repurchased US$1.5 billion in shares during the year, reducing its share count by 3%.
Looking ahead to 2026, Barrick is guiding gold production of 2.9–3.25 million ounces. The biggest production driver is the ramp-up at Loulo-Gounkoto in Mali, where operations have resumed following the resolution of a dispute with the government.
The Reko Diq copper project in Pakistan, one of the largest undeveloped copper-gold deposits on Earth, is advancing, though management noted ongoing security concerns in the region and that a financing review is underway.
The headline grabber is the planned partial initial public offering (IPO) of Barrick’s North American gold assets, including Nevada Gold Mines and Fourmile.
Management is targeting completion by late 2026, with Barrick retaining majority control. The goal is to unlock what Hill described as significant undervaluation within the current Barrick share price.
The bottom line on the TSX mining stocks
Gold’s worst week in 15 years makes the news. What doesn’t make as many headlines is that both of these companies just delivered record cash flows, raised dividends, and entered 2026 with strong balance sheets and visible growth pipelines.
Both Kinross and Barrick are down roughly 30% from their highs. Both are generating more cash than they ever have. The combination of strong fundamentals, beaten-down prices, and a potential re-rating catalyst from the gold market’s next leg higher is precisely the kind of setup long-term investors look for.
