K trade ideas
KGC- Gold/Silver mining play (Industry)As usual, demand for Gold mining stocks has risen with the ore rally. Mining stock such as KGC has outperformed major gold/silver mining ETFs and completely obliterated gold/silver ETFS since March.
It is a higher risk and higher reward play for investors who want to ride the gold/silver trend.
EV/EBITDA TTM, Price/cash flow TTM and many other valuation ratio indicate that KGC are undervalued compared to its peers.
Kinross Gold is scheduled to announce Q2 earnings results todayShow Me the Money! 29 July, 2020, by Vladimir Rojankovski, Senior Analyst, Grand Capital
One of less talked-about but more potent beneficiaries of this year’s gold rally Kinross Gold (KGC) is scheduled to announce Q2 earnings results today, on July 29th, after market close.
The consensus EPS Estimate is 13 cents and the consensus revenue estimate is around $1 billion (assuming a 20% growth Year-over-Year). Over the last 2 years, Kinross Gold has beaten EPS estimates 63% of the time and has beaten revenue estimates 50% of the time.
Kinross is gaining from higher production at its two main deposit fields, that already had shown strong momentum in this year’s first quarter. Strong production is likely to have continued in the second quarter. Further, gold prices have been soaring this year making it the most attractive safe-haven asset. Gold prices have gained around 13% in the second quarter — the highest quarterly percentage increase in more than four years.
Long in depthIn my last post I didn't go in depth into the company and what differentiates them from everyone else.
Their business has not been impacted by the coronavirus like other gold miners. It has not slowed down it's operations (see their website for more details).
KGC has gained 89% while the industry as a whole has only risen by 49.2%. Having gone relatively unnoticed Kinross has outperformed it's industry.
Here is why:
Their mill capacity increased from 8,000 tons per day to 12,000 tons. It has increased its production to 400,000 gold equivalent ounces per year at an all-in sustaining cost of $760 per ounce!!!!!!!
This phase was completed in phase one of their plan, in the runup to 2018.
In the first quarter they had a throughput of 16,100 tons per day.
Their phase two plans has them increasing that capacity to 30,000 tons per day.
This is not a volatile stock. Because of its long history It has generational expertise mining gold that shows in their productivity and efficiency. This company is mature.
Cash flow jumped 81% year over year in the last reported quarter.
It has few controversies.
Here is why:
KGC has an ethical board, with diversified leadership, excellence governance, and they follow responsible business practices. From it's management to its on the ground operations this company is gold inside and out.
They are perfectly positioned to meet the demands coming from developing economies for the next 100 years, if not more. They own the most lucrative mines at spots all over the world (more on their website)
This company is extremely undervalued by analysts and the financial media.
If we were to apply the generous 6 and 10 year look ahead projections afforded to the tech industry (many of which don't pay taxes), I would come across as insane putting any number forward, so I won't.
However, you can do the valuation yourself for whatever period of time you have in mind, all the necessary information has been mentioned up top or on their website.
In my humble opinion this stock is worth more than gold, or at a minimum represents a better value in the long run.
What would your parents say if you were to bring that guy/girl home that could turn your $760 bucks into $1900 ( the current price of gold per ounce), and they saw what you saw: "that's a keeper" is what they would say.
Well this is a keeper, it is a solid company that will give you more than you put into it.
This is not some Gold company in ecuador poisoning people and polluting rivers with tons of mercury in order to extract 1 gram of gold. In either case, KGC would still be producing more gold than them and their other rivals, some of which use scorched earth practices.
It's hard find value like that in real life.
This company is undervalued by everyone and nothing can explain it's valuation compared to its competitors, or it's performance compared to those competitors, or any of the quality metrics I mentioned above.
However, do your do diligence, research and verify everything I have said before investing,
and good luck! :-)
KGC Gold Pop or DropToday you can straddle this June expiration 7.00 strike price for $100 - and the question is does it go to 8.50-9.00 or does it drop to under 6.00? I do not trade gold in any form, so I'm looking for answers/thoughts from those who do. Draw channels, add other indicators, or whatever, but gold has been up since the ides of March. So, beware! Thanks in advance for your feedback.
$KGC Kinross Gold $8 target 2020 Q1 highlights:
Production1 of 567,327 attributable gold equivalent ounces (Au eq. oz.), and sales of 552,742 Au eq. oz.
Reported net earnings2 almost doubled to $122.7 million, or $0.10 per share, and adjusted net earnings3 increased by 53% to $127.4 million, or $0.10 per share, compared with Q1 2019.
Operating cash flow of $299.6 million and adjusted operating cash flow3 of $418.6 million, a 19% and 81% increase respectively compared with Q1 2019.
Production cost of sales3 of $754 per Au eq. oz. and all-in sustaining cost3 of $993 per Au eq. oz. sold, both of which are within the Company’s original annual guidance range.
Attributable margin per Au eq. oz. sold4 increased 33% to $827 per Au eq. oz. compared with Q1 2019, while the average realized gold price increased 21% to $1,581 per ounce compared with Q1 2019.
Cash and cash equivalents of $1,138.6 million and total liquidity of $1.9 billion at March 31, 2020. The Company has no debt maturities until September 2021.
On March 2, 2020, Moody’s upgraded Kinross’ credit rating to investment grade. Kinross’ debt is now rated investment grade by each of the agencies that cover it – Moody’s, S&P Global Ratings and Fitch Ratings.
Three largest producing mines – Paracatu, Kupol and Tasiast – delivered 62% of total production and achieved an average cost of sales of $642 per Au eq. oz., with average costs lower than the previous quarter.
Tasiast, for the second consecutive quarter, achieved record quarterly production and a record average throughput rate of 16,100 tonnes per day (t/d), as the mine continues to benefit from the Phase One expansion.
On March 10, 2020, a new Paracatu technical report was filed confirming the benefits of an asset optimization program at the mine, which has resulted in a 24% increase in life of mine production compared to the prior report.
Long The Gold Miners!! 100% ROI Potential - January 20' ForeacstHi Traders,
I have just added to my long position in Kinross Gold Corp.
This is my Favorite stock for a bullish gold market in the new decade. If gold makes the rally to previous ATH ($2,000) (+30%) ...this stock could easily double.
Lots of TA confluence pointing to overhead targets. Entry below $5.00 should be good. I will be looking to take profit between ~$8.00 and $10.00 hope to see you there with me.
Best of luck, hit thumbs up.
