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Kinross Gold Shares Decline Amid Weakening Gold Prices and Unimpressive Growth

Strategic Insights

— 1 min read

Kinross Gold (KGC) shares are losing ground as gold prices falter following three consecutive sessions of gains due to a stronger US dollar. The spot gold price has declined by 0.6% to $1,211.26 an ounce, while gold futures for February delivery are down 0.6% to $1,212.10 an ounce. Kinross, a Canadian-based gold mining company, has experienced significant underperformance in terms of net income, earnings per share, and overall market trend. The company's gross profit margin has increased, but its net profit margin is in-line with the industry average.

Key Takeaways:

  • Kinross Gold (KGC) shares are lower by 1.5% to $3.28 in mid-morning trading, as gold prices pare gains to trade in the red.
  • The company has experienced significant underperformance in terms of net income, with a 112.2% decline year-over-year.
  • Kinross' earnings per share have decreased by 100.0% compared to the same quarter last year.
  • The company's gross profit margin has increased from 43.43% to 43.61%.
  • Despite a strong gross profit margin, the net profit margin is in-line with the industry average.
  • TheStreet Ratings Team rates KINROSS GOLD CORP as a Sell with a ratings score of D due to multiple weaknesses, including unimpressive growth in net income and disappointing historical performance.
  • Kinross' return on equity (ROE) has increased significantly, but the company underperformed against the industry average and the S&P 500.

Statistics:

  • Kinross Gold (KGC) shares are down 1.5% to $3.28 in mid-morning trading.
  • The spot gold price has declined by 0.6% to $1,211.26 an ounce.
  • Gold futures for February delivery are down 0.6% to $1,212.10 an ounce.
  • Kinross' net income has declined by 112.2% year-over-year, falling from $41.90 million to -$5.10 million.
  • The company's earnings per share have decreased by 100.0% compared to the same quarter last year.
  • Kinross' gross profit margin has increased from 43.43% to 43.61% year-over-year.
  • The net profit margin is in-line with the industry average at -0.53%.

Sources:

  • TheStreet
  • CNBC
  • Kinross Gold Corporation
  • TheStreet Ratings Team

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