Kinross Gold Is An Undervalued Company

|
About: Kinross Gold Corporation (KGC)
by: Maxaub Investments
This article is exclusive for subscribers.
Maxaub Investments
Long only, Deep Value, gold, commodities
Summary

The price of gold has gone from $1,100 in 2016 to more than $1,500. Many investors will be willing to invest in gold.

Kinross is a miner of gold and other byproducts such as silver.

The implied share price with EV/EBITDA of 5.5x-7.5x and 2023 EBITDA of $1.610 billion is $8.43-$10.75. The current share price is $4.87.

Kinross Gold is not only an undervalued company. I think this industry is trading at low multiples, which investors will appreciate.

EPS will be approximately stable at $0.21-$0.27 in 2019-21. After negative EPS in 2016, 2017 and 2018, many investors will be interested in acquiring shares in 2019 and 2020.

Editor's note: Seeking Alpha is proud to welcome Maxaub Investments as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free