Value, tech, gold & precious metals, gold

Why Kinross Investors Are Over-Reacting To Russian Exposure

Gold is up roughly 10% from the lows it hit in late 2013 and almost every gold major has seen a nice move higher during that time, yet Kinross Gold Corporation(Ticker: KGC) is still near 52-week lows. The stock should be around $5.50, or roughly 40% higher if it was tracking the other major gold producers. You can blame this on Russia.

(click to enlarge)

(Chart source:

Kinross owns two mines in the region, Dvoinoye and Kupol. These are high grade, low cost, and big production gold mines. Kinross expects the two to produce a total of 690,000-730,000 ounces of gold in 2014 at a cash cost of $575 per ounce. Not only do these two mines...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details