Gold 2026: KGC and DPM, the only 10/10 miners
2026-06-23 · By Lubin Danilo, founder of Lubin Investment
Kinross Gold (KGC) and DPM Precious Metals are the only two gold producers rated 10/10 in our screener among 5,000+ analyzed stocks. KGC trades at $26.30 vs target $28.52 (-7.8%). DPM trades at $44.45 vs target $46.31 (-4.0%). Both are below their targets — rare buy conditions for 10/10 stocks.
Gold mining: a difficult sector for our method
Most gold producers fail our screener: revenue growth tied to the gold price (exogenous), volatile FCF depending on gold price, low ROIC in low-price periods, high debt to finance mines. Barrick Gold, Newmont, and Agnico Eagle — the three global leaders — score below 8/10. Kinross and DPM are exceptions: two companies that have maintained high fundamental quality even in moderate gold price environments.
Kinross Gold (KGC) and DPM: comparative data
| Criterion | Kinross Gold (KGC) | DPM Precious Metals (DPM) |
|---|---|---|
| Lubin screener score | 10/10 | 10/10 |
| Current P/FCF | 12.55× | 13.06× |
| Current price | $26.30 | $44.45 |
| Lubin entry target | $28.52 | $46.31 |
| Price vs target | -7.8% (below target) | -4.0% (below target) |
| Market cap | ~$12B | ~$3.5B |
| Annual production (gold) | ~2.1 Moz | ~0.3 Moz |
| Key mining assets | Tasiast (Mauritania), Round Mountain (Nevada) | Chelopech (Bulgaria), Ada Tepe (Bulgaria) |
Kinross Gold: the diversified mid-tier
Kinross Gold Corporation (NYSE/TSX: KGC) is a mid-tier gold producer with mines in Mauritania (Tasiast — its flagship), the US (Nevada), Brazil, and South Africa. Tasiast is one of the world's lowest-cost mines on an All-in Sustaining Cost (AISC) basis — giving exceptional profitability even at moderate gold prices. KGC produces 2.1M oz/year, making it a mid-tier with major-quality assets.
DPM Precious Metals: the little-known European gem
DPM Precious Metals Inc. (TSX: DPM) is a gold and copper producer listed on the Toronto Stock Exchange, less known to French investors. Its two main mines in Bulgaria (Chelopech, Ada Tepe) produce gold with copper by-products that improve margins. DPM is smaller than KGC (~$3.5B market cap) but displays similar quality metrics.
Buy signal: both are below our targets
Unusual situation: two 10/10 stocks are simultaneously below their targets. KGC at -7.8% below target, DPM at -4% below target. Since early 2026, gold stocks have slightly corrected after their strong 2024-2025 run driven by gold's surge. Gold remains supported by emerging central bank purchases, geopolitics, and de-dollarization. If gold stays above $2,000/oz, KGC and DPM should continue generating solid FCF.
FAQ
Why do only 2 gold miners score 10/10 out of 5,000 stocks?
Mining is structurally challenging for our method: FCF depends on gold price (exogenous variable), AISC varies by mine, and most majors have costly M&A strategies. KGC and DPM maintained high fundamental quality through exceptional assets and superior financial discipline.
Do gold mining stocks protect against inflation?
Partially. Miners amplify gold's movement — when gold rises 10%, profitable miners can rise 20-30% (operating leverage). But they don't offer the direct protection of physical gold — there's operational risk (mines, permits, politics) on top of price risk.
What about Barrick, Newmont and Agnico Eagle?
The three majors don't score 10/10 in our screener. Their size implies frequent M&A acquisitions (goodwill, dilution), geographic diversification with more lower-quality assets, and higher average AISC. Mid-tiers like KGC often have better quality-to-price ratios than majors.
How is gold's outlook for 2026-2027?
Gold has been supported by central bank diversification away from USD (especially China, India, Russia), ongoing geopolitical uncertainty, and strong retail demand in Asia. Analyst consensus targets $2,200-2,800/oz for 2026-2027. Both KGC and DPM have significant operating leverage to gold prices above $1,800/oz.
Analyser une action sur Lubin Investment
About the author
Written by Lubin Danilo, founder of Lubin Investment. A self-taught individual investor, I have analyzed stocks through their fundamentals for several years and invest my own money with this method. I codified it into a tool that judges a company's quality and its price separately, using criteria drawn from the financial literature (Warren Buffett, Michael Mauboussin, Aswath Damodaran).