Kinross Gold Corp Down Again as CEO Shares Shareholder Frustration Over Stock Price
Kinross Gold Corp. (K.TO) chief executive Tye Burt admitted to shareholders Wednesday that it was frustrating to see the stock underperform when the gold price has been reaching new highs, the Globe and Mail reported.
It noted Kinross shares have fallen about 20% so far this year, while the price of gold has risen by about 7%. Kinross shares rose 5% Wednesday after its first-quarter results beat analyst expectations, but they are down more than 1% again today, reflecting big losses for the broader TSX.
Weighing on Kinross stock in recent months is the $7.1-billion bet it made on Africa-focused Red Back Mining Inc., a transitional deal for the company that also diluted its stock and increased its geopolitical risk, according to the Globe and Mail.
Still, Burt maintains buying Red Back is a long-term move and its value has yet to be recognized by the market, the paper reported.
Kinross, on Tuesday, said it earned $255.5 million or 22 cents a share in the latest quarter. Adjusted earnings of 16 cents a share were above the Thomson Reuters mean estimate of 14 cents and the 14 cents it earned on that basis a year earlier.
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