A new recommendation with near-term potential is Kinross Gold Corp. (KGC), a mining company headquartered in Toronto, notes Mark Skousen, editor of Low-Priced Stock Trader.
Established in 1993, Kinross has a diverse portfolio of mines and projects in the United States, Brazil, Russia, Mauritania, Chile, and Ghana.The company’s diversified asset portfolio is a significant strength, reducing geopolitical risks and ensuring a steady production stream.
The company has also demonstrated great operational efficiency. Its Tasiast mine in Mauritania, for example, has undergone successful expansions, significantly increasing production and lowering costs per ounce.
And Kinross is well-positioned for future growth. It has a significant exploration program aimed at discovering new resources and extending the life of its existing mines. This exploration success not only adds to the company’s reserves but also provides long-term growth opportunities.
The price of gold recently hit a record and the mining industry has a favorable outlook. Gold remains a safe-haven asset, attracting investors during times of economic uncertainty.
As the Fed and other central banks around the world adopt more accommodative monetary policies and governments increase spending to boost economic growth, inflationary concerns are likely to drive gold demand higher.
Furthermore, the challenges of discovering new gold deposits, coupled with declining grades and increased regulatory scrutiny, constrain supply growth. This supply-side pressure, combined with robust demand from both investors and central banks, sets a positive backdrop for gold prices.
The performance numbers at Kinross are already impressive. In the most recent quarter, the company reported a 19% increase in earnings on a 16.4% rise in revenue. Looking ahead, I expect earnings per share to double from $0.58 this year to $1.20 next year.
In short, this mining company’s operational strengths, sound financial health, promising growth prospects and favorable industry outlook make it a compelling opportunity.
