Dallas, Texas 08/05/2014 (FINANCIALSTRENDS) – Kinross Gold Corporation (USA) (NYSE:KGC) shares in the previous week trading lost over 0.25% at the stock market achieving trading prices of $3.98 per share. The fall in prices was due to the weak second quarterly results announced on June 30, 2014. As the mining sector struggled through the second quarter, precious metal miners such as KGC too reported a drop in performance.
Precious Metal Prices Slide
Kinross Gold Corporation (USA) (NYSE:KGC) in its second quarter report noted that the revenue it gained from the sale of metals was to the tune of $911.9 million. For this segment, this was a drop as KGC had reported sales to the tune of $968.0 million for the second quarter 2013 fiscal. The earnings per share for stood at $0.03 per share which in comparison to previous years EPS of $0.10 was lower. The massive drop in EPS for this quarter was due to the overall drop in gold price index across the markets. The net earnings for the precious metal miner for 2014 Q2 stood at $46.0 million which is $0.04 per share, which translated to the loss of $2,481.9 million or $2.17 per share, for the period Q2 2013. The net loss for Q2 2013 was after-tax, non-cash impairment costs to the tune of $2,289.3 million.
Kinross Gold Corporation (USA) (NYSE:KGC) as did other precious metal miners reported lesser market for their wares. As global consumers such as India put into place protective regulations, such as 10% import duty on precious metals such as gold and silver, the demand for physical gold has hit the downward trend.
Analysts, such as Barclays, forecast that gold prices will see a further drop in prices to $1,200/oz in the third quarter. Therefore, exercising caution is the primary option for investors, given the complex range across which prices of precious metal are calculated.