Kinross looks to have bottomed and is starting to make a move. Even though they failed to meet or exceed earnings expectations for the most recent quarter (.14 vs .20), the market is beginning to bid up this stock. The recent weak jobs report has pushed gold stocks higher as chances of QE3 increase. In addition gold companies are also being helped with the ECB with their latest easing bond strategies also being released. These economic situations have helped investors find promise in Kinross.
Kinross also appointed a new CEO in August, replacing the former with a new CEO aiming to aggressively decrease production costs, something that has plagued gold producers in the recent months. There has been some speculation that this move may lead to a a breakup of the company or a sale altogether. Is this is the case- great. I feel the company is undervalued in the industry and if a breakup or sale allows us to realize some of that value- I’m for it.
Sentiment: Continue to hold.