Kinross Gold (KGC) Stock Closed Up as Earnings Estimares Lowered at Barclays

Kinross Gold's (KGC) Q1 fiscal earnings estimates were lowered this morning at Barclays as the firm believes a weak start to 2016 will hurt the gold mining company's short-term valuation.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Kinross Gold (KGC) - Get Report  closed up 5.22% to $5.64 even though the company's first quarter fiscal earnings were lowered this morning to $0.03 from $0.05 at Barclays

The price decrease is a result of the Toronto-based gold mining company's underwhelming start to 2016 as "higher than expected stripping, harsh winter conditions and the replenishment of ADR plant inventory will cause the mine to under-perform its original guidance for the year," according to an analyst note.

Long-term valuation for Kinross should improve based on an encouraging visit to the company's mines in Nevada where the firm noted "significant reserve growth potential" and "expanded drilling budgets" at the Bald Mountain site and an improved "process solution management program" at the Round Mountain site.  

"Overall, we came away with the opinion that there is operational and resource upside at both mines now that they are under the control of KGC and may receive more attention/resources in the KGC portfolio," Barclays wrote. 

Additionally, the firm reiterated an "equal weight" rating with a $5 price target for the company. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate KINROSS GOLD CORP as a Hold with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

KGC

data by

YCharts

Loading ...