Whats bugging the Kinross Gold stock price?
Relatively heavy cash flow commitments on expansions and new projects may be an explanation, with investors possibly anticipating a fresh capital call. Author: Barry Sergeant Posted: Friday , 27 Nov 2009 JOHANNESBURG – Earlier this year, there were patches of weeks here and there when Kinross ranked as the world’s most in-demand global Tier I gold stock. But from around mid-October, the stock price has been underperforming relative to the global Tier I group, second only to Harmony, which faces a specific set of headwinds in South Africa, where all its current operations are located. A detailed read of Kinross’s third quarter results for 2009 showed once again that the group is having something of a tough time generating free cash flow (operating cash flow after the deduction of cash capital expenditure). On the one side of the coin, the dollar gold price has been rising since early 2002, and has especially more recently moved from one new record to another. Investors may anticipate th
