RE: RE: net loss per share quadrupled...Toronto gold mining analyst John Ing thinks Kinross Gold could face more problems, making any investment in the stock a risky bet.
Canadian gold bug John Ing remains highly bullish on the outlook for gold, saying the yellow metal could reach $3,000 an ounce as fiat currencies continue to lose their value.
But the Maison Placements Canada President is much more cautious about the outlook for Kinross Gold Corp. (TSX: T.K, Stock Forum) (NYSE: KGC, Stock Forum), a Toronto gold mining giant that saw its stock price jump by nearly 9% Thursday on third quarter earnings news.
Trading at $10.27 on Friday, Kinross has a market cap of $11.7 billion, based on 1.13 billion shares outstanding. The 52-week range is $15.02 and $7.15.
Even though Paul Rollinson was named Chief Executive Officer in August, Ing is telling investors not to buy the shares at this time.
“We think it is too soon to buy Kinross here but Rollinson has started well,’’ Ing said in a report, implying that the stock faces too much downside risk.
Canada’s third largest gold producer, Kinross recently launched a sweeping cost-cutting campaign after sacking former CEO Tye Burt, and seeing its production costs leap 27% to US$725 an ounce in the second quarter of 2012 from US$569 a year earlier.