Kinross Gold Corporation (USA)(NYSE:KGC) is a mid-cap gold miner on the rise again. As gold goes, so goes Kinross. Growing optimism about the future price of gold once more has gold bugs piling into gold producers such as Kinross Gold Corporation (NYSE:KGC), the world’s fifth-largest gold producer.
The company has an excellent track record of turning in consistent results, and continues to build out its portfolio of gold mines located in three major regions: the Americas, West Africa and Russia.
Kinross Gold Corporation (USA)(NYSE:KGC) shares are currently trading around $3.91, giving the company a stock market capitalization of $5.09B. Shares have been trading in a range of $3.90-$4.01, and over the most recent 52-week period, have traded as low as $1.67 and as high as $5.82. YTD, shares of KGC are up 24.7 percent after trending down at the end of 2016.
Over the last 12 months, shares of the company are up an impressive 136.59 percent.
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Going forward, the future of this Canadian gold mining company looks bright. As of November 22, analysts had a consensus price target on the company of $4.46, with a low of $3.22 and a high of $6.50. Obviously, Kinross has already blown through the low price and now looks set to make a steady march to the $5 mark.
Toronto-based Kinross has a portfolio of 9 gold mines, spread out over 3 core regions. Within the Americas, the primary gold mining properties are Fort Knox (in Alaska), Round Mountain and Bald Mountain (both in Nevada), Kettle River-Buckhorn (in northern Washington state, near Canada) and Paracatu (in Brazil). In Africa, the two major gold mining properties are Tasiast (in Mauritania) and Chirano (in Ghana). The company also has two mining properties in Russia, Kupol and Dvoinoye.
What investors love about Kinross is the company’s consistent and solid operational performance. This is a company that doesn’t disappoint – it has met production and cost guidance for five consecutive years. And the company’s most recent quarterly performance (3Q 2016) was impressive – the company posted a 55 percent increase in adjusted operating cash flow on a year-over-year basis, as well as an increase of $153 million in adjusted net earnings on a year-over-year basis.
As part of the quarterly investor presentation, the company’s management noted that all development projects – especially the new Bald Mountain project – are on schedule. The company’s management also highlighted the strong financial position of the company: a strong balance sheet, total liquidity of $2.2 billion and no debt maturing until 2020.
Most importantly, the price of gold is holding strong, and that’s obviously boosting the company’s financial results. For example, in 3Q 2016 the company sold its gold for an average realized price of $1336. That’s a big increase over the year-earlier period, when the average price was $1122.
Overall, the analyst community seems somewhat bullish on Kinross. Of the 12 brokerage houses following Kinross, 3 have a Strong Buy on the company, 3 have a Buy, and 6 have a Hold.
In 2017, it looks like shares of Kinross are starting to recover again after trading sideways or down for much of the final five months of 2016. There’s strong institutional ownership (64 percent) of the stock, and that gives the stock price a certain built-in level of support.
The question for investors really comes down to how they want to play the gold market. If investors are looking for a senior gold producer with a solid portfolio of gold mining assets and a long track record of performance, then Kinross could be the direction they head. If that’s the case, get ready to ride Kinross up past the $4 mark and possibly even beyond the $5 mark. As long as the price of gold holds steady, Kinross is poised for a move upward. For more news updates on $KGC and other fast-moving penny stocks such as Kinross Gold Corporation, please subscribe to OracleDispatch.com now.