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KGC

Kinross GoldNYSE:KGC Stock Report

Last Price

CA$5.59

Market Cap

CA$7.0b

7D

2.6%

1Y

-19.7%

Updated

16 Jan, 2022

Data

Company Financials +
KGC fundamental analysis
Snowflake Score
Valuation6/6
Future Growth4/6
Past Performance2/6
Financial Health5/6
Dividends4/6

KGC Stock Overview

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania.

Kinross Gold Competitors

Newmont

NYSE:NEM

US$48.9b

Agnico Eagle Mines

NYSE:AEM

US$12.6b

Compañía de Minas BuenaventuraA

NYSE:BVN

US$2.1b

DRDGOLD

NYSE:DRD

US$701.2m

Price History & Performance

Summary of all time highs, changes and price drops for Kinross Gold
Historical stock prices
Current Share PriceCA$5.59
52 Week HighCA$8.34
52 Week LowCA$4.90
Beta0.86
1 Month Change0.72%
3 Month Change-7.60%
1 Year Change-19.68%
3 Year Change80.32%
5 Year Change55.71%
Change since IPO49.07%

Recent News & Updates

Dec 27

Kinross: Long-Term Outlook Improves Following Recent Acquisition

Kinross Gold announced an agreement to acquire Great Bear Resources earlier this month for a price tag of ~$1.4 billion or ~$1.45 billion with contingent consideration. For a company that's yet to publish a maiden resource estimate, this looks like a hefty price tag, but I would argue it's a fair price given Dixie's upside. Notably, Kinross structured the deal with a large cash component and minimal dilution, with the potential for a ~19% increase to project NPV (5%) with barely ~7% share dilution. With Kinross having one of the lowest percentages of production from Tier-1 jurisdictions, and a mediocre growth profile at best, the addition of Great Bear could be a game-changer.

Nov 01

Kinross: Enviable Project Pipeline Offset By Operational Setbacks

Kinross Gold is one of the worst-performing senior gold producers since Q3 2020, down more than 41% vs. a 30% decline in the Gold Miners Index. The underperformance can be tied to setbacks related to pit instability at Round Mountain, and a fire at the company's flagship Tasiast operation that has sidelined the mill until Q4. However, at a P/NAV ratio of just over 0.80x, these setbacks look to be mostly priced in, especially considering the meaningful growth from key projects over the next few years. Given Kinross' reasonable valuation and solid growth outlook, if it can execute on key projects, I would view any pullbacks below US$5.20 as low-risk buying opportunities.

Aug 19

Kinross Gold: Production Increase And A 45% Upside Potential

Kinross Gold is a gold and silver mining company and is one of the 10 top gold-mining companies in the world. The most interesting thing right now about Kinross is that production is expected to increase from 2.1 million gold equivalent ounces to 2.9 million in 2023. I designed a DCF model with a conservative discount of 7.5%-8.5% and FCF from market estimates. The result obtained implies an upside potential of more than 45%. After a 306% increase in FCF that market analysts forecast for the year 2022, I used a 13%-7% FCF growth from 2023 to 2026. In my view, as soon as more investors learn about the company’s future production, the share price will trend north.

Shareholder Returns

KGCUS Metals and MiningUS Market
7D2.6%2.0%-0.5%
1Y-19.7%21.8%13.7%

Return vs Industry: KGC underperformed the US Metals and Mining industry which returned 21.8% over the past year.

Return vs Market: KGC underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is KGC's price volatile compared to industry and market?
KGC volatility
KGC Average Weekly Movement5.6%
Metals and Mining Industry Average Movement9.0%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: KGC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KGC's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1993n/aJ. Rollinsonhttps://www.kinross.com

Kinross Gold Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of gold properties principally in the United States, the Russian Federation, Brazil, Chile, Ghana, and Mauritania. It is also involved in the extraction and processing of gold-containing ores; reclamation of gold mining properties; and production and sale of silver. As of December 31, 2019, its proven and probable mineral reserves included approximately 30.0 million ounces of gold and 59.2 million ounces of silver.

Kinross Gold Fundamentals Summary

How do Kinross Gold's earnings and revenue compare to its market cap?
KGC fundamental statistics
Market CapUS$6.99b
Earnings (TTM)US$1.01b
Revenue (TTM)US$4.05b

6.9x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KGC income statement (TTM)
RevenueUS$4.05b
Cost of RevenueUS$1.78b
Gross ProfitUS$2.27b
ExpensesUS$1.26b
EarningsUS$1.01b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Feb 16, 2022

Earnings per share (EPS)0.80
Gross Margin56.11%
Net Profit Margin24.90%
Debt/Equity Ratio21.2%

How did KGC perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

15%

Payout Ratio

Valuation

Is Kinross Gold undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KGC ($5.59) is trading below our estimate of fair value ($32.38)

Significantly Below Fair Value: KGC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KGC is good value based on its PE Ratio (6.9x) compared to the US Metals and Mining industry average (8.9x).

PE vs Market: KGC is good value based on its PE Ratio (6.9x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: KGC is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: KGC is good value based on its PB Ratio (1x) compared to the US Metals and Mining industry average (2.2x).


Future Growth

How is Kinross Gold forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

34.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KGC's forecast earnings growth (34.3% per year) is above the savings rate (2%).

Earnings vs Market: KGC's earnings (34.3% per year) are forecast to grow faster than the US market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KGC's revenue (14.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: KGC's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KGC's Return on Equity is forecast to be low in 3 years time (12.7%).


Past Performance

How has Kinross Gold performed over the past 5 years?

59.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KGC has high quality earnings.

Growing Profit Margin: KGC's current net profit margins (24.9%) are lower than last year (26.9%).


Past Earnings Growth Analysis

Earnings Trend: KGC has become profitable over the past 5 years, growing earnings by 59.2% per year.

Accelerating Growth: KGC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KGC had negative earnings growth (-6.8%) over the past year, making it difficult to compare to the Metals and Mining industry average (125.5%).


Return on Equity

High ROE: KGC's Return on Equity (15.1%) is considered low.


Financial Health

How is Kinross Gold's financial position?


Financial Position Analysis

Short Term Liabilities: KGC's short term assets ($2.0B) exceed its short term liabilities ($771.5M).

Long Term Liabilities: KGC's short term assets ($2.0B) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: KGC's net debt to equity ratio (11.4%) is considered satisfactory.

Reducing Debt: KGC's debt to equity ratio has reduced from 40% to 21.2% over the past 5 years.

Debt Coverage: KGC's debt is well covered by operating cash flow (113.3%).

Interest Coverage: KGC's interest payments on its debt are well covered by EBIT (24.8x coverage).


Balance Sheet


Dividend

What is Kinross Gold current dividend yield, its reliability and sustainability?

2.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KGC's dividend (2.15%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: KGC's dividend (2.15%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: KGC's dividend payments have been volatile in the past 10 years.

Growing Dividend: KGC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15%), KGC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KGC's dividends in 3 years are forecast to be thoroughly covered by earnings (12.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

J. Rollinson (59 yo)

9.42yrs

Tenure

US$7,709,382

Compensation

Mr. J. Paul Rollinson has served as Chief Executive Officer and Director of Kinross Gold Corporation since August 1, 2012. Mr. Rollinson serves as President of Kinross Gold Corporation. He was appointed Ex...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD7.71M) is about average for companies of similar size in the US market ($USD6.40M).

Compensation vs Earnings: J.'s compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: KGC's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: KGC's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KGC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kinross Gold Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Kinross Gold Corporation
  • Ticker: KGC
  • Exchange: NYSE
  • Founded: 1993
  • Industry: Gold
  • Sector: Materials
  • Implied Market Cap: CA$8.776b
  • Listing Market Cap: CA$6.995b
  • Shares outstanding: 1.25b
  • Website: https://www.kinross.com

Number of Employees


Location

  • Kinross Gold Corporation
  • 25 York Street
  • 17th Floor
  • Toronto
  • Ontario
  • M5J 2V5
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:15
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.