How to Buy High Gold Prices: 5 Stocks vs. Miners ETF
Kinross Gold, contd.
The company recently bought Red Back for $7.1 billion, a 21% premium to the share price. Kinross also sold its stake in Harry Winston Diamond Corp and Diavik Diamond Mine joint venture for a total of $406 million. Kinross has a market cap of almost $13 billion.
Income Statement: Kinross reported adjusted earnings of 16 cents a share in the second quarter of 2010. The company produced 538,270 gold equivalent ounces, which was 4% lower than a year earlier, at a cash cost of $496 an ounce, which was 14% higher than a year earlier.
Balance Sheet: Kinross has $694.8 million in cash, cash equivalents and short-term investments, along with $589.1 million in long-term debt.
Analyst Ratings: Sixty percent of the ratings on Kinross are buys, with 7 holds and 1 sell. The average price target is $21.03 and the forward P/E estimate is 23.57, so the stock trades at a premium to the S&P. Shares are down almost 5% year-to-date.
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