2012 was a bad year for many gold producers. Especially, for Kinross and Barrick Gold. Both these companies have made some bad deals in the past which is affecting their costs and is being reflected on their share price. Kinross over paid for their Tasiast Project which they purchased from Red Bank Miningwhich was suppose to be a company maker and Barrick's take over of copper producer-Equinox didn't make any sense to investors. This week both these companies had to take a writedown on both those projects. I am currently a shareholder of Kinross Gold and long term I believe gold prices will be going higher. Kinross at current levels looks very attractive and I believe in 12mths we can see stock price 100% higher from todays levels. Everyone hates gold stocks now, so because gold and gold stocks are not in favor this would be the time to start looking at taking positions in some of the producers. Remember folks, even if gold hits $1500 these gold producers will still be making a lot of money at their current cash costs.
I also believe a combination of both companies could eventually happen. Last year an analyst mentioned on July 13, 2012-Globe and Mail that Barrick could make a run for Kinross Gold. Kinross is currently trading around $8.05 and the book value is around $11.00.
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Disclosure: I am long KGC.