If You Invested $1000 in Kinross Gold a Decade Ago, This is How Much It'd Be Worth Now
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.FOMO, or the fear of missing out, also plays a role in investing, particularly with 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 requires research, patience, and a little bit of risk. So, if you had invested in Kinross Gold ten years ago, you're likely feeling pretty good about your investment today.According to our calculations, a $1000 investment made in December 2014 would be worth $3,251.61, or a gain of 225.16%, as of December 11, 2024, and this return excludes dividends but includes price increases.Compare this to the S&P 500's rally of 197.85% and gold's return of 111.22% over the same time frame.Analysts are forecasting more upside for KGC too. Kinross’ adjusted earnings and sales for the third quarter beat the respective Zacks Consensus Estimate. 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. The stock has jumped 6.11% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2024; the consensus estimate has moved up as well.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks 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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