Bill Cara

Cara Community GSM: Kinross Gold 11-2020 update

Kinross Gold (TSX:K) (NYSE: KGC) updated 11-11-2020

(all figures stated in USD).

Market Cap:       $9.58 B                 Share Price:        $7.66

Shares outstanding: 1.25 Billion

Cash: $933.5 Million as of 30 Sep 2020

Long-term Debt: $1.9 Billion as at 30 Sep 2020

Current operations: Yes

Insiders: Low      Institutional: 520 institutions own 70% of shares

https://www.kinross.com/news-and-investors/news-releases/press-release-details/2020/Kinross-reports-strong-2020-third-quarter-results/

CEO: J. Paul Rollinson                     HQs: Toronto, ON, Canada

Q3 updates:

  • Kinross Gold produced 603,312 Au equivalent ounces in 3Q2020
  • Earnings were almost tripled at $310 Million or $0.25 per share on revenue of $1.13 Billion
  • AISC was $958 and the production cost was stated as $737 per oz of gold
  • Operating cash flow doubled to $544 M
  • The average realized price of gold was $1908 per oz
  • Repaid $750 Million on its Credit facility; has $500 Million in Senior Notes due Sept 2021
  • CEO Rollinson discussed an idea of transferring Kinross’ primary listing to London and to exit operations in North & South America, which seemed to negatively impact the shares in October

Bottom line:

  • Blow-out quarter for this solid major and respected mine operator with core expertise in building producing gold mines
  • Perennial two million+ ounce gold producer
  • Could improve the balance sheet
  • I personally own it with a +7.2% portfolio weighting
  • Attractively priced today at 9.0 PE, 12.8 P/FCF, and 7.9 times forward earnings

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