I believe Kinross Gold (TSX:K) is one of the best gold stocks Canadian investors can buy and hold for decades, and the recent drop makes it even more attractive.
The stock recently traded near $33 on the TSX, about 37% below its all-time high. The slide aligns with a pullback in gold prices over the past few months.
I am not calling the exact bottom as gold is volatile, and the stock could fall further. But when a quality company gets cheaper while its results improve, I pay attention.
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Why gold miners swing hard when bullion moves
Gold mining stocks, such as Kinross, are leveraged plays on gold prices. Due to substantial fixed costs, a mining company can increase profits at an accelerated pace when commodity prices rise. Alternatively, profit margins contract significantly during a bear market.
Gold prices surged to record levels in 2025 and have since cooled off. Despite the ongoing pullback, Kinross stock has returned over 400% in the last three years.
Gold prices could move lower in the near-term, especially if interest rates rise over the next 12 months. However, geopolitical tensions, central bank purchases, and the possibility of an AI bubble bursting act as tailwinds for Kinross and gold.
Record cash flow and a fortress balance sheet back up the story
In 2025, Kinross produced over two million ounces of gold at an average realized gold price of US$3,423 per ounce. It generated US$3.8 billion in operating cash flow and US$2.5 billion in free cash flow. This means Kinross spent US$1.3 billion on capital expenditures.
Kinross repaid US$700 million of debt and returned more than US$750 million to shareholders through dividends and share buybacks in 2025. It ended the year with net cash of US$1 billion and total liquidity of US$3.5 billion. In the first quarter of 2026, Kinross delivered its fourth straight quarter of record free cash flow, at roughly US$840 million.
At the end of 2025, Kinross held proven and probable reserves of about 20.9 million ounces of gold, plus measured and indicated resources of roughly 27.5 million ounces.
Kinross is advancing the Great Bear project in Ontario, which it calls a world-class deposit with the potential to support a large, long-life mine, with first production targeted for 2029. The company also moved ahead on three U.S. growth projects in January and continues to develop Lobo-Marte in Chile.
Its two biggest mines, Tasiast in Mauritania and Paracatu in Brazil, together account for more than half of production at strong margins. Paracatu has topped 500,000 ounces for eight straight years. A long reserve life plus a funded project pipeline is exactly what you want in a stock you plan to own for 20 years.
The Foolish takeaway
You have a profitable miner with record cash flow, net cash on the balance sheet, a long reserve life, and a clear growth pipeline.
Gold can remain weak, and the share price can remain range-bound in the near term. But if you believe gold has a place in a portfolio over the long run, owning a low-cost, cash-rich producer like Kinross is one of the cleaner ways to gain exposure to the yellow metal.
I think Kinross Gold is a buy on this dip for investors with a multi-year horizon. Wall Street remains bullish on the gold mining stock and expects it to surge by 87%, based on consensus price targets.
