Here's How Much You'd Have If You Invested $1000 in Kinross Gold a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.What if you'd invested in Kinross Gold (KGC) ten years ago? It may not have been easy to hold on to KGC for all that time, but if you did, how much would your investment be worth today?Kinross Gold's Business In-DepthWith that in mind, let's take a look at Kinross Gold's main business drivers. Based in Ontario, Canada, Kinross Gold Corporation is involved in the exploration and operation of gold mines. It ranks among the top 10 gold mining companies in the world, with a 2023 production of around 2.1 million gold equivalent ounces. The company's operations are primarily located in - the Americas (roughly 71% of 2023 production). It holds major assets in Canada and the United States. It is mainly involved in the exploration and operation of gold mines. Kinross also produces and sells silver.The company has facilities in the United States, Canada, Brazil, Chile, and caters to a diverse clientele in Brazil, Chile, Canada, and Greece. It runs several mines, including Fort Knox, Round Mountain and Bald Mountain in the United States; La Coipa in Chile; Tasiast in Mauritania; and Paracatu in Brazil. The company’s development projects include Manh Choh in the United States, and Great Bear in Canada.The company’s strategy is to boost shareholders’ value by increasing net asset value, precious metal reserves, long-term cash flow production and earnings per share.In February 2018, Kinross’ fully-owned subsidiary — Kinross Brasil Mineracao — announced the acquisition of two hydroelectric power plants located in Brazil from a subsidiary of Gerdau SA for $257 million. The two plants — Barra dos Coqueiros and Cacu — are expected to secure a long-term power supply for Kinross’ Paracatu mine, which will lower production costs over the life of mine. In July 2018, the transaction was completed successfully.The deal considerably de-risks supply chain as it is expected to secure just about 70% of Paracatu’s anticipated power requirements at a low, fixed cost, while the remaining 30% power demand is expected to be fulfilled by third-party suppliers under fixed-term power purchase agreements. This will lower market exposure for a key input in an environment where Kinross expects input costs to rise. Moreover, strategic investment in core asset will further enhance and strengthen Paracatu, which is a cornerstone asset in the company’s portfolio.Bottom LineAnyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Kinross Gold a decade ago, you're probably feeling pretty good about your investment today.A $1000 investment made in January 2015 would be worth $3,283.99, or a gain of 228.40%, as of January 29, 2025, according to our calculations. This return excludes dividends but includes price appreciation.Compare this to the S&P 500's rally of 203.06% and gold's return of 111.31% over the same time frame.Analysts are forecasting more upside for KGC too. Earnings estimates for Kinross for the fourth quarter of 2024 have been going up over the past month. It is focusing on organic growth through its Tasiast mine, where the Phase One expansion boosted production capacity, and the Tasiast 24K expansion further increased throughput and production. The Paracatu mine is set to increase production in 2024, while the Gilmore and Manh Choh projects at Fort Knox are expected to extend operations and benefit from higher gold prices. The Great Bear project in Ontario offers a promising long-term opportunity with substantial gold resources. Surging gold prices should also boost Kinross’s profitability and drive cash flow generation. However, the company's higher production costs are also expected to dent its results. A high debt level is another concern. Over the past four weeks, shares have rallied 17.26%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kinross Gold Corporation (KGC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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