Be smarter and faster with PRO Alerts on KGC
From other sites
at Nasdaq.com (Wed, 11:03AM)
at Zacks.com (Tue, 7:20PM)
at Nasdaq.com (Tue, 2:12PM)
at Zacks.com (Nov 19, 2014)
at Zacks.com (Nov 17, 2014)
Kinross Gold Corporation (KGC): New Analyst Report from Zacks Equity Research - Zacks Equity Research Reportat Zacks.com (Nov 17, 2014)
at Zacks.com (Nov 12, 2014)
at Zacks.com (Nov 6, 2014)
at Zacks.com (Nov 3, 2014)
at CNBC.com (Oct 3, 2014)
There are 4 articles on this stock available only to PRO subscribers.
- Kinross Gold is one of the most punished gold stocks.
- In my view, fears (and the related discount) about the company's Russian assets are greatly exaggerated.
- Kinross Gold's solid balance sheet and cost performance will ultimately be noticed by investors.
- Kinross Gold beat the Street's earnings and revenues estimates by a large margin.
- Growth prospects at the Tasiast mining asset in West Africa may dwindle if gold prices keep lagging.
- Kinross presents an attractive, and cheap valuation relative to senior peers.
Kinross Gold's Third Quarter Results Might Be The Beginning Of A TurnaroundMitu Anand • Mon, Nov. 10
- Kinross Gold is having a bad time of late, but the company's latest results indicate it might be able to stage a comeback.
- Kinross faces a number of headwinds such as uncertainty in gold pricing and production issues, but it is taking steps to counter these.
- Kinross, however, has a number of projects that can drive its growth in the long run.
Update: Kinross Gold Earnings - This Is The Moment To Overhaul The Company
- Kinross Gold reported earnings, and the net loss in Q3 is hiding a nice amount of positive free cash flow.
- This was much better than I expected, but I think Kinross will be FCF negative in Q4 due to higher capital expenditures and a lower gold price.
- Kinross Gold now has the unique chance to re-invent itself, and the corporate development strategy will determine the future of the company.
- Kinross Gold reported flat net earnings for the quarter but strong operating cash flow.
- I had expected the company to be able to generate this strong cash flow in my bullish article.
- A weak gold price and concerns over the company's Russian assets have hit the stock price creating an incredible opportunity.
- Kinross is being hit on two fronts: a falling gold price and Russian roulette.
- A strong balance sheet and expense control make Kinross an attractive speculation.
- Recently announced sale of Ecuadorean property adds more cash.
- Kinross Gold sells its much maligned Fruta Del Norte for around $240 million in cash and equity.
- The proceeds will help add liquidity to Kinross's balance sheet and help service its large debt load.
- Investors will be able to tell a lot about the nature of management's approach based on whether they conservatively or aggressively use this money.
Update: Kinross Gold Sells Its Fruta Del Norte Project In Ecuador
- Kinross Gold plans to sell its Fruta del Norte Project in Ecuador for $240 million in cash/equity in Fortress Minerals.
- I had not anticipated this in February.
- This is a positive development that supports my thesis that Kinross is focusing on core assets in safer jurisdictions.
Kinross Gold Is Cleaning Up Its Fruta Del Norte Mess
- Kinross Gold sells its Fruta del Norte project for $240M in cash and stock.
- I didn’t expect the company would be able to sell the project for a quarter of a billion, so that’s decent news.
- However, the impact on the share price will be limited and I remain on the sidelines.
- A fire at the Round Mountain Project mill led Kinross to shut it down temporarily.
- I had not anticipated this in my February article.
- While this sounds bad, Round Mountain is a small operation for Kinross.
- Shares have been beaten down due to a weak gold market and the company's Russian assets, but there is still compelling opportunity in this hated major.
Why Kinross Gold's Drop Looks Like An Opportunity In Disguise
- Kinross Gold is down 20% this year as the company's financial performance has been declining.
- Kinross, however, is making impressive moves to bring its operations back on track by focusing on cost reductions and exploration.
- Kinross will also benefit from an improvement in gold pricing.
- Estimates suggest that Kinross' performance will improve going forward.
- Kinross Gold Corporation is quoting near a 12-year low.
- The first half of 2014 clearly showed an important improvement in figures.
- Despite the improvement, the stock has been a serious underperformer compared to the Arca Gold BUGS index.
- Investors are (wrongly) punishing the stock over its Russian mines.
Some, But Not Enough, Progress At Kinross Gold
- Cost and capital discipline are helping, but Kinross still sits at the high end of the cost curve for large gold miners.
- A go/no-go decision on Tasiast awaits in 2015, and investors are worried about what may happen to the company's valuable Russian assets in the meantime.
- Excluding an expansion at Tasiast, Kinross looks more or less fairly valued today, but does offer much less development risk (and a better EV/EBITDA value) than most miners.
What It Really Costs To Mine Gold: The Kinross Gold Second Quarter Edition
- Kinross’s costs on both a core and a core non-tax basis have continued to fall significantly on a year-over year basis.
- Sequentially though the second quarter saw Kinross's cost rise from the surprisingly good first quarter numbers.
- While Kinross's silver production was down due to the closure of La Coipa operations, gold production has been rising.
- Investors should also monitor the company's ability to service its debt as at current gold prices it is essentially breaking even.
Why Kinross Investors Are Over-Reacting To Russian Exposure
- 27% of Kinross' gold production comes from Russia.
- The stock is undervalued even if Russia takes extreme measures and issues sanctions on foreign owned businesses.
- Tasiast, the thorn in the side of Kinross for the last few years, more than makes up for it.
- Kinross Gold reported relatively good second quarter earnings of $0.03/share on higher production, lower costs.
- This is largely in line with my bullish thesis spelled out in February.
- The company has written off its bad assets and gotten its act together, although shares should remain under pressure as U.S.-Russian tensions continue. Gold bulls should buy on weakness.
- At the end of 2013, Kinross implemented a new costing methodology for reserve estimate.
- Due to this new methodology, the company's reserves at year-end 2013 were approximately 42.8 million ounces of gold, a net decrease of 16.8 million ounces compared with year-end 2012.
- Reduction in reserves estimates means that Kinross has less economically viable gold.
Tue, Nov. 18, 3:59 PM
- Gold prices jumped 1.2% to settle just shy of $1,200/oz. as the dollar eased against major currencies amid tensions in eastern Europe and the Middle East, and some observers are starting to ask if gold mining and production stocks (GDX +4.8%) have finally found a bottom.
- 24/7's Chris Lange thinks gold giants may have hit their lows on Nov. 5, followed by an impressive recovery since that date with gold fundamentals apparently not changing drastically.
- Major precious metals miners are strong across the board: ABX +6.5%, AEM +4.4%, AU +6.2%, GG +3.7%, GFI +7.6%, SLW +3.6%, NEM +3.4%, AGI +4.9%, IAG +6.6%, AUY +6.8%, KGC +9.2%, NGD +2.8%, GOLD +1.9%, RGLD +3.7%.
- Other ETFs: GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PSAU
Fri, Nov. 14, 10:58 AM
- The gold market will enter deficit by 2016 as producers cut capex, resulting in reduced supply in the medium- to long-term, Credit Suisse analyst Anita Soni writes, seeing 2014 as a likely plateau for supply (Briefing.com).
- Agnico Eagle Mines (AEM +2.6%) and Eldorado Gold (EGO +4.5%) are the firm's top picks among gold miners under coverage.
- Other Outperform rated gold companies are GG, KGC, AUY, AUQ, FNV, GSS and IAG; rated Neutral are ABX, NEM, NGD and AGI.
Tue, Nov. 11, 10:30 AM
- Kinross Gold (KGC +1.7%) rallied late last week after CEO Paul Rollinson said the miner probably would not expand its Tasiast gold mine in Mauritania if gold prices do not improve, but Deutsche Bank analyst Jorge Beristain thinks canceling the project could make KGC a more attractive acquisition target.
- The analyst says KGC would go "ex-growth" without Tasiast but such an outcome also would result in a much improved balance sheet; he also thinks KGC is in a much better position relative to peers to cope with weak gold prices.
- Beristain continues to rate KGC a Hold with a $3.50 price target.
Mon, Nov. 10, 6:46 PM
- With gold trading down as low as $1,131/oz., precious metals miners were hit hard again today, with the Market Vectors Gold Miners ETF (NYSEARCA:GDX) tumbling 6.3% and now 17% lower YTD.
- Barrick Gold (NYSE:ABX), which fell 6.7% today, was the subject of negative comments from Deutsche Bank, which said, “Management’s target net debt of $7B, conveyed on its 3Q14 earnings conference call, is a tall order without a combination of a higher gold price and asset sales.”
- Mining companies at least can look forward to the modest consolation prize of weaker local currencies and falling oil prices that will help trim their costs; for example, Agnico Eagle Mines (NYSE:AEM) estimates local currency declines could reduce its U.S. dollar-denominated cash production costs by 5%-6%.
- Also today: AU -9.8%, GG -4.8%, GFI -4.6%, SLW -4.7%, NEM -5.9%, AGI -6.8%, IAG -6.1%, AUY -6.6%, KGC -6.4%, NGD -7.2%, GOLD -5.1%, RGLD -5.3%.
- Other ETFs: GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PSAU
Fri, Nov. 7, 9:14 AM
- Gainers: MITK +29%. RMTI +27%. RPRX +24%. SHLD +22%. CNET +15%. NETE +11%. PGNX +10%. ZNGA +9%. APT +9%. KING +9%. KING +9%. KGC +8%. TKMR +7%. AGIO +7%. BEBE +5%.
- Losers: SLXP -35%. MDRX -20%. CTIC -19%. ICPT -19%. UBNT -17%. ANF -13%. ANET -11%. ORBC -10%. AVNR -7%. FSLR -7%. PLNR -6%. NDLS -6%. RIG -5%. DVA -5%. NADL -5%.
Thu, Nov. 6, 8:59 AM
- Kinross Gold (NYSE:KGC) +5% premarket after strong Q3 results show the company is well equipped to weather a bear market for gold.
- Q3 all-in sustaining costs fell 16% Y/Y to $919/oz., meaning KGC is generating solid margins at current gold prices of ~$1,140/oz.; many other gold miners are underwater at those prices.
- KGC raised the low end of its 2014 production guidance, now expecting to produce 2.6M-2.7M oz. of gold, and lowered the high end of its all-in sustaining cost guidance, seeing costs of $950-990/oz. from the prior range of $950-$1,150.
- CEO Paul Rollinson says KGC probably would not move forward with the Tasiast expansion project if gold prices do not rebound from their recent steep decline.
Wed, Nov. 5, 5:04 PM
Tue, Nov. 4, 5:49 PM
Tue, Nov. 4, 5:35 PM
- ABTL, ACAS, ACLS, ALNY, ALSK, ANDE, AR, AREX, ASH, ATO, ATSG, AVG, AWK, BALT, BCOR, BIOS, BKD, BREW, BWC, CBS, CDE, CF, CLR, CODI, CPE, CSOD, CTL, CVG, CXO, DATA, DEPO, DK, DPM, DRYS, DVR, DYN, ECOL, ECYT, EFC, ENS, ENSG, ETE, ETP, EXAR, EXXI, FMI, FNV, G, GNW, GPOR, GSM, HOLX, HTCH, IL, INWK, IO, JCOM, KGC, KW, LBTYA, LHCG, LPSN, MBI, MCHX, MCP, MDR, MDWD, MED, MHLD, MIDD, MRIN, MTDR, MTRX, MUSA, MWE, NDLS, NLY, NVAX, NWSA, OILT, ORA, ORIG, OSUR, PAA, PLNR, PMT, PODD, POWR, PPO, PRGN, PRU, PTC, QCOM, QEP, QUAD, RGP, RNDY, RUTH, SB, SBY, SCTY, SD, SKUL, SLF, SSNI, SSRI, STMP, SUSP, SWIR, SWM, SXL, SYMC, SZYM, TCAP, TEAR, TEG, TERP, THOR, TNGO, TPC, TRAK, TROX, TRUE, TS, TSLA, TSRO, TTEC, TXTR, UHAL, VVUS, WBMD, WFM, WMC, WMGI, WR, WTI, WWWW, XPO, Z
Fri, Oct. 31, 12:47 PM
Fri, Oct. 31, 11:35 AM
- Precious metals miners are slammed for a third straight session as gold prices plunged to multiyear lows.
- Japan’s surprise stimulus move is supporting the U.S. dollar and driving the ICE U.S. Dollar index to a four-year high, making gold more expensive to overseas buyers; while the prospect for more monetary stimulus usually increases the lure of gold, the threat of global deflation has withered gold’s appeal as a hedge against rising prices, Barron's Chris Dieterich explains.
- Nearly everyone in the sector is hitting 52-week lows (again): ABX -4.5%, NEM -7.7%, GG -0.5%, SLW -3.6%, AGI -5.8%, AEM -4.1%, AUY -10.6%, IAG -4.6%, KGC -16.2%, NGD -6.1%, AU -2%, GOLD -1.6%.
- Also: GFI -7.4%, RGLD -3.8%.
- ETFs: GDX, GDXJ, NUGT, DUST, SIL, JNUG, GLDX, JDST, SLVP, RING, SGDM, PSAU
Wed, Oct. 29, 7:40 PM
- Precious metals miners and the ETFs that track them were slammed today as the Fed moved to end its bond purchase program.
- Today’s 4.3% swoon in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) drives the price below $20 for the first time since Oct. 2008, and the Global X Silver Miners ETF (NYSEARCA:SIL) tumbled 3.5% to its lowest finish since its launch in April 2010.
- The Fed action was expected, but paired with a more upbeat assessment of the U.S. labor market, gold’s appeal is further dampened vs. income generating assets, Barron's Chris Dieterich writes.
- Among individual names today: ABX -5.1%, NEM -4.7%, GG -4.1%, GFI -3.2%, SLW -3.3%, AGI -3.4%, AEM -4.7%, AUY -4.1%, IAG -4.6%, KGC -2.9%, NGD -4.3%, AU -3.3%, RGLD -4.8%, GOLD -2.5%.
- Other ETFs: GLD, SLV, GDXJ, NUGT, AGQ, IAU, DUST, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, DSLV, SLVP, OUNZ, DGL, DBS, SILJ, DGZ, RING, DGLD, AGOL, SGDM, PSAU, USV, UBG, BAR, BARS
Tue, Oct. 21, 6:11 PM| Comment!
Thu, Oct. 9, 3:58 PM
- The price of gold may be rising, but gold mining stocks are getting hammered today; after all, "they are still stocks," Barron's Johanna Bennett writes.
- Gold prices rallied today to $1,234/oz., their highest level since Sept. 23, a day after the dovish minutes from the Fed’s September policy meeting excited gold bugs, but shares of the mining companies are falling along with the broader market selloff.
- Among the top mining names: IAG -6.9%, KGC -6.2%, SLW -5.9%, NGD -5.5%, AU -4.9%, GG -4.7%, ABX -3.9%, AUY -3.9%, GFI -2.8%, BTG -2.7%, RGLD -2.6%, AGI -2.1%, GOLD -1.8%.
- ETFs: GLD, SLV, GDX, GDXJ, NUGT, AGQ, IAU, DUST, SIL, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, SLVO, GLDI, DSLV, SLVP, DGL, DBS, SILJ, DGZ, RING, OUNZ, GGGG, DGLD, AGOL, SGDM, PSAU
Wed, Oct. 8, 6:20 PM
- No investment sector benefited more today from the dovish take on the FOMC meeting minutes than precious metals miners, as the Fed's worries over weakening world economies and a strong U.S. dollar offer hope for gold bulls that the Fed will not rush to raise interest rates.
- Gold mining ETFs surged past those linked to the commodity price, with GDX +7.4% and GDXJ +9.6% while GLD +1%; among leveraged ETFs, NUGT +21.5%.
- Among major miners: BTG +14.4%, AGI +13.6%, GG +8.6%, RGLD +8.6%, SLW +8%, NGD +7.6%, IAG +7.5%, GFI +7%, AUY +6.9%, ABX +5.2%, AU +4.8%, KGC +3.5%.
- Other ETFs: SLV, AGQ, IAU, DUST, SIL, USLV, SIVR, JNUG, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, JDST, SLVO, GLDI, DSLV, SLVP, DGL, DBS, GLTR, SILJ, DGZ, RING, OUNZ, GGGG, DGLD, AGOL, DBP, SGDM, WITE, PSAU
Wed, Oct. 8, 5:25 PM
- Kinross Gold (NYSE:KGC) says mill operations at its Round Mountain mine in Nevada have been suspended following an Oct. 1 fire in the mill building.
- Production continues from the mine's heap leach facilties, which account for ~75% of Round Mountain's output; KGC says it does not expect the interruption to affect 2014 production guidance for the company or the Americas region.
- KGC says it is assessing the mill's estimated downtime and will provide an update when it announces its Q3 results on Nov. 5.
KGC vs. ETF Alternatives
Other News & PR