SomaBull
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: Stockcharts.com)

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...

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