Dallas, Texas 12/26/2013 (FINANCIALSTRENDS) – Kinross Gold Corporation (USA) (KGC) Fairing Better Than Competition In Depressed Gold Markets
Kinross Gold Corporation (USA) (NYSE:KGC) is a Canada based gold mining firm with a market cap of $5.01 billion. In the past year the mining firm is struggling to churn out profits in the past couple of years. It has accumulated a net loss of $5.2 billion in the trailing 12 months. This loss was aggregated from total sale of $4.09 billion in the same time period. It’s earnings per share on a quarter on quarter basis has plummeted by 80 percent in the most recently concluded quarter. The sales managed in the same quarter have dropped by close to 21 percent.
Depressed Gold Market Sentiments
This general weakness in the operational aspects of Kinross Gold Corporation (USA) (NYSE:KGC) has been reflected in the general depressed sentiments prevailing in the gold trade, internationally over the past 12 to 16 months. Readers would have been tracking the travails of gold traders internationally in the past year. In the past week, gold prices have slid to 36 month low of below $1200 per ounce. The demand for gold too has been seeing erratic increase and drop over short periods. This uncertainty in the market had put a lot of pressure on the gold producers and mining firms. This has resulted in acute pressure on the income statements of mining firms which in turn has led to weakness of the stock in the stock markets.
Stock Market Performance
Kinross Gold Corporation (USA) (NYSE:KGC) stock has been struggling to impact a turnaround in the fortunes of its stock market performance. In the past year, 53 percent of the market cap has been lost at the markets, which translates into a 14 percent dip in value during trading in the past quarter. Over the past month, with rumours gaining momentum that Fed was all set to cut down its federal stimulus package, gold stock lost further gloss leading to a 6.4 percent dip in value in trading in the past one month. Last week when Fed actually reduced its stimulus by a $10 billion every month going forward, investors further dumped their gold holdings resulting in a 4.7 percent dip in value.
A day before the markets closed for the traditional Christmas break, the stock of Kinross Gold Corporation (USA) (NYSE:KGC) scripted a 1.86 percent during trading to reverse some of its losses in the past month. At close of business on December 24, the stock price was hovering around $4.38. This translates into a 55.7 percent dip below its prior 52 week high price point. The stock is within touching distance of its past 52 week low price point. The stock has been range bound between $4.24 and $9.89 in the past year.
Trying To Shore Up Share Holder Value
Kinross Gold Corporation (USA) (NYSE:KGC) has been one of the better dividend payers among the gold mining firms in the past year. It has paid an annual aggregate of $0.16 per share to its share holders. This translates into a 3.65 percent dividend yield over the past year, there by attempting to alleviate some of the loss of value in the stocks its investors have suffered in the last year. With the general market sentiments in U.S showing steady improvement over the past few months, investors in the stock of Kinross Gold Corporation (USA) (NYSE:KGC) should be gearing themselves for further weakness in demand for Gold.