KGC - Kinross Gold: Best Leverage To Gold Among Seniors

2024-02-20 23:24:08 ET

Summary

• Kinross trades at half the valuation per gold ounce produced compared to peers.
• A stretched balance sheet and long in the tooth mines are concerns.
• Great Bear exploration success continues, providing an exciting pipeline project that could potentially produce 500koz/y by 2029.

If you are bullish on the price of gold, something to keep in mind when investing in a gold producer is how much you pay per yearly ounce of gold produced. The metric doesn't differ much from P/S, but it does cut through the noise of gold price fluctuations. While two gold producers might trade at the same P/E, one could be much better positioned to benefit from a bull market in gold. Kinross Gold (KGC) (K:CA) is one such stock, that should see outsized returns if gold moves higher. I will get into more details on that later in the article, first starting off with a quick overview of the company....

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