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Kinross Gold Corporation Message Board

  • financesajeed financesajeed Sep 27, 2013 2:30 PM Flag

    KGC: Performance reflection

    Kinross Gold Corporation (KGC), a Canadian based gold and silver mining company, has been operating in North America, West Africa, Russia and South America. The company has more than 9 projects running. The operational performance of the company - as viewed from balance sheet and income statement - is promising’ however, the company needs to reduce operation cost. A company with lower cost of production and lower debt burden ensures financial flexibility as well as financial solvency in long run. KGC, by nature of most other mining companies has incurred a lot of expenses in initial stage which causes increase in negative earnings per share. However, it is expected that the company will recover gradually. Market price of KGC stock has shown a significant volatility in the last one year (high $11.2 and low $4.97). Now the stock is traded close to $5.0 which is reflection of present operational performance. The company also has been facing challenges from peer companies, some of which have low operating cost as well as gold production cost. For example, Pershing Gold (PGLC) expects to have production cost around $700 to $800 per ounce, which signs for good return in future having a possibility of increase in price in market. However, it is not difficult for KGC to do well if it can reduce cost of production.

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