Kinross Gold Corporation (K.TO) Expected to Rise in August/September
Rated As Best Value Gold Stock
Kinross Gold Corporation
Ticker: K.TO
Price: CAD 8.51
Kinross Gold Corporation KGC has reached an agreement with the government of mauritania to enhance their partnership.
Per the terms of the deal, Kinross will receive a 30-year exploitation license for Tasiast Sud from the government under the 2012 Mining Convention and the 2008 Mining Code. Further, the deal reinstates the tax exemption on fuel duties and includes the repayment of around $40 million in outstanding VAT refunds to Kinross by the government.
Post completion of the definitive agreements, Kinross will pay $10 million to the government to resolve disputed problems associated with fuel use and tax exemptions. Additionally, Kinross will pay $15 million upon receiving the earlier-mentioned exploitation license to resolve any disputed issues stemming from Kinross’ previous application to convert the Tasiast Sud exploration license into an exploitation license.
The renewed partnership approach contemplates the government to receive a 15% free carried interest in Tasiast Sud together with an option to purchase a further 10% interest in the project once completion of additional feasibility works.
Per Kinross, the balanced agreement will deliver increased stability and position Tasiast for long-term success along with providing advantages to mauritania and its people.
Shares of Kinross have surged 85.7% in the past year compared with the industry’s 49% growth.
Business Summary
Kinross Gold Corporation is a gold mining company. The Company is engaged in gold mining and related activities, including exploration and acquisition of gold-bearing properties, the extraction and processing of gold-containing ore, and reclamation of gold mining properties.
The Company’s segments include Fort Knox, Round Mountain, Bald Mountain, Paracatu, Kupol, Maricunga, Tasiast and Chirano.
Fort Knox is an open-pit gold mine located in Fairbanks, Alaska. Round Mountain open-pit mine is located in Nye County, Nevada.
Bald Mountain open-pit mine is located in Nevada. The Company’s gold production and exploration activities are carried out principally in Canada, the United States, the Russian Federation, Brazil, Chile, Ghana and Mauritania.
Gold is produced in the form of dore, which is shipped to refineries for final processing. Kinross also produces and sells a quantity of silver.
Shayne Heffernan Trade Idea
“We predict the future price of Kinross Gold will come in around CAD 11.95 which will give the stock a price increase of +40.42%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Sideways.
The projected upper bound is: 9.47.
The projected lower bound is: 7.61.
The projected closing price is: 8.54.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 6 black candles for a net of 3 black candles. During the past 50 bars, there have been 23 white candles and 24 black candles for a net of 1 black candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 52.3648. This is not an overbought or oversold reading. The last signal was a buy 7 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.21. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 34 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 1. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 31 period(s) ago.
Rex Takasugi – TD Profile
KINROSS GOLD closed down -0.320 at 8.510. Volume was 19% below average (neutral) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume 8.890 8.975 8.450 8.510 5,704,808
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 8.50 9.09 6.99 Volatility: 65 68 83 Volume: 5,520,141 6,300,688 5,072,723
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
KINROSS GOLD is currently 21.8% above its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect volume flowing into and out of K.TO at a relatively equal pace (neutral).
Our trend forecasting oscillators are currently bearish on K.TO and have had this outlook for the last 15 periods.
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Sources:
Kinross Gold Company Website
Thomson Reuters Metastock and Eikon financial tools
