Investing in Kinross: The Company’s Overall Position in the Industry
Kinross needs to provide reasonable confidence to the shareholders regarding its production sustainability, either through organic growth or through acquisitions and mergers.
Out of 27 analysts covering Kinross, nine have “buy” recommendations, 13 recommend a “hold,” and five have “sell” recommendations on Kinross’s stock.
Kupol and Dvoinoye mines represent a significant portion of Kinross Gold’s operations. For 2Q15, they contributed ~30% of company’s production.
Kinross Gold’s (KGC) balance sheet is in good shape. On June 30, 2015, it had $2.5 billion in liquidity, including $1 billion in cash.
Moody’s downgraded its rating for Kinross on March this year mainly because of its concentration and geographic risk profile.
Kinross Gold has delivered strong operational results over the last 12 consecutive quarters. It has achieved record production at a number of mines and reduced costs company-wide.
Kinross Gold (KGC) has a history of growing through acquisitions. At the same time, it has a history of making poor acquisitions that lead to huge write-downs.
Like other gold miners, Kinross has also embarked on several cost-cutting initiatives to weather the current volatile metals price environment.
Kinross Gold’s revenues have been declining since 2012. This is mainly due to declining gold prices, as the production profile has been more or less stable.
Mill expansion has the potential to transform Tasiast into Kinross Gold’s (KGC) largest mine, with costs among the lowest in its portfolio.
Kinross Gold (KGC) is under severe pressure to replace its declining reserve base. Several of its mines are expected to close over the next few years.
Kinross Gold (KGC) acquired the Tasiast mine in the 2010 acquisition of Red Back Mining Inc. Tasiast is located in Mauritania in West Africa. It is an open-pit operation and…
The Kupol deposit is located in the Chukotka Autonomous Okrug of the Far East region of the Russian Federation. It is a high-grade, low-cost underground mine.
Kinross’s South America operations are higher cost relative to the rest of its operations, mainly due to lower grades.
Kinross Gold’s (KGC) Fort Knox operation is located in one of the largest gold-producing areas in Alaska, and it is 100% owned by Kinross.
Currently, Kinross Gold has eight operating mines in the Americas, Russia, and West Africa. It also has two development projects in South America and West Africa.
Kinross Gold has three mine sites in North America: Fort Knox in Alaska, Round Mountain in Nevada, and Kettle River–Buckhorn in Washington.
In this series, we’ll analyze the various business aspects of Kinross Gold. We’ll also look at various key drivers that impact Kinross’s investors.
In commoditized business like gold mining, the main advantage a company can have is low-cost, quality assets.
Newmont’s reserves are becoming depleted due to maturing mines, especially in the Yanacocha mine in Peru.