Kinross Gold Corporation (USA) (NYSE:KGC) Tightens Operations


Dallas, Texas 01/02/2014 (FINANCIALSTRENDS) – Kinross Gold Corporation (USA) (NYSE:KGC) is a $ 5 billion market capped gold producer from Canada. During the first day of trading in the New Year, the stock managed to post a 2.34 percent increase in its market value. This turn around adds to the close to 1.86 percent increase the stock value has seen in the past one week of trading and summarily reverses the continued losses the stock had accumulated in the past 52 weeks. Over the trailing 12 months, the stock has posted a 54 percent decrease in value and this taper’s down to a 7 percent dip in value in the past one month.

Commenting about the efforts being taken by Kinross Gold Corporation (USA) (NYSE:KGC) to regain investor confidence, its EVP and CFO Tony S. Giardini has been quoted as saying, “The first goal is to deliver on performance targets quarter-after-quarter. Secondly, it’s pursuing high quality ounces not production at any class. Thirdly, it’s being disciplined in balancing our projects, using our capital prudently and reducing execution risk until the decision that we make on capital. And lastly, it’s about maintaining our balance sheet strength and preserving our liquidity position.”

As part of the revitalization programme which has been afoot for close to 10 months now, Kinross Gold Corporation (USA) (NYSE:KGC) has been executing a strategic roadmap christened “Way Forward” which involves a continues process of achieving incremental improvements in the company performance by reducing costs and taking steps to improve cash flow which in turn will assuage the difficult margins situation the company is going through.

Some of those process upgrades have started to show results for Kinross Gold Corporation (USA) (NYSE:KGC). In the most recent third quarter for which results were announced in November, the year on year production was higher than both FY12 3Q and sequentially more than 2QFY13. This improvement in the operations has emboldened the gold producer to increase its guidance to 2.65 million ounces as against previously announced 2.4 million ounces.

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