Kinross Gold Corporation (USA) (NYSE:KGC) looses gloss over labour unrest


Dallas, Texas 09/18/2013 (Financialstrend) – On September 13, Kinross Gold Corporation (USA) (NYSE:KGC) released press note highlighting that for the third consecutive year  Kinross has been named on Dow Jones Sustainability World Index as a mark of appreciation of its ongoing efforts to practice responsible mining.  While this served as good feel good factor for the employees and the share holders of the company, the share price of the company is taking a beating over the past one month.

Kinross share price has dipped 8% since August 19. On August 19, the company announced that it has managed to convenience its employees to stop striking and get back to work. The company had announced on August 8 that its unionized employees at Tasiast plant had absented themselves from work because of a strike call given by the unions to pressure the company management to come to the negotiating table. The company further claimed that the 10 day labour unrest will not have any material impact on gold production at Tasiast and reaffirmed its quarter and full year production forecast for its West African operations.

Kinross shares are currently trading at $5.26 per share as of close of business on September 17. This represents a 53% depreciation on its prior 52 week high valuation. It has seen an upward movement of 16% from its prior 52 week low price. Its 7.354 million of share changed hands on the day representing a 38% dip in comparison to 65 day average trade volume of over 11 million shares per day. Its current market capitalization is $5.95 million with 1.14 billion shares outstanding. The company last paid a dividend of $0.08 per share in March’13. On the day, company shares have outperformed both the Doe Jones and the basic materials index.

Kinross is a Canada based  gold mining company with operations in Brazil, Chile, Ghana, Mauritania, Russia and the United States.