Kinross Gold Corporation is a Canadian-based gold mining company with mines and projects in the United States, Brazil, Chile, Ghana, Mauritania, and Russia. The company was founded in 1972 and is based in Toronto, Canada.
KGC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kinross Gold Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kinross Gold Corp ranked in the 16th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 82.33%. In terms of the factors that were most noteworthy in this DCF analysis for KGC, they are:
The company's debt burden, as measured by earnings divided by interest payments, is 9.95 -- which is good for besting 78.11% of its peer stocks (US stocks in the Basic Materials sector with positive cash flow).
The company's compound free cash flow growth rate over the past 5 years comes in at -0.1%; that's greater than just 17.66% of US stocks we're applying DCF forecasting to.
KGC's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 27.4% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as KGC, try CEIX, HHT, SMG, MDU, and WDFC.
Gold has long been regarded as a safe haven in times of market turmoil. Many investors have gained exposure to the precious metal by buying stocks of companies engaged in exploration and mining. Some of the major players in the gold industry include mining companies Franco Nevada Corp.
White Gold Corp. (TSX.V: WGO, OTC – Nasdaq Intl: WHGOF, FRA: 29W) (the “Company”) is pleased to announce it has commenced drilling on its Titan Project as well as initiated ground surveys on other high priority targets based on the Company’s systematic data-based exploration strategy, including detailed soil sampling, ground geophysical surveys, GT probing, mechanical trenching and detailed geological and structural mapping. This activity marks the initiation of the Company’s fully funded 2020 exploration program backed by partners Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM) and Kinross Gold Corp (TSX: K, NYSE: KGC) on its extensive 420,000 hectare land package in the emerging White Gold District, Yukon, Canada. The 2020 exploration program has been designed to further test exis...