Another big leap in
Kinross Gold Corp. (
TSX: T.K,
Stock Forum) short positions suggests that investors continue to see downside risk in the stock, even though company has been making efforts to cut back on spending in the wake of soft gold prices.
Figures released by the TSX Tuesday reveal that Kinross short positions reached 41.3 million at the end of October 2013, marking an increase of 13.7 million from 27.6 million on October 15, 2013.
It market the largest rise for any company on the list.
Short positions in
Penn West Petroleum Ltd. (
TSX: T.PWT,
Stock Forum) and
Encana Corp. (
TSX: T.ECA,
Stock Forum) and
Bank of Nova Scotia (
TSX: T.BNS,
Stock Forum) also rose sharply in the same period, according to figures released by TSX Datalinx.
Kinross is a Toronto gold mining company with operations in Brazil, Canada, Chile, Ghana, Mauritania, Russia, and the United States.
For Kinross, it is the second time in a row that the company has seen a big rise in short positions. Between September 30, 2013 and October 15, the number rose by 10.5 million to 27.6 million.
These increases come as the gold miner has seen its stock price fall to $5.18 from $5.46 at the end of October, leaving the company with a market cap of $6 billion, based on 1.1 billion shares outstanding.
At current levels, Kinross has been a disaster for people who bought at levels close to the 52-week high of $10.44.
Kinross reported a loss of $2.48 billion or $2.17 per share in the second quarter ended July 31, 2013, after taking a non-cash impairment charge of $2.28 billion due to short and long term gold price assumptions as well as a decision to defer a mill expansion at the Tasiast mine in West Africa.
It also recorded a charge of $720 million stemming from a previously announced decision to cease development at its Fruta del Norte project in Ecuador.
Kinross Investors are betting that the share price will go lower even though the company has taken a number of steps to reduce operating costs and capital spending in a bid to maximize cash flow.
At the end of July, Kinross said it has identified $180 million in potential savings for the balance of 2013.
The company has forecast that capital spending in 2013 will fall to $1.45 billion from $1.6 billion.
It also said it expects to identify more opportunities for savings as cost reviews are completed.
Still, Kinross has said it expects to meet 2013 production guidance of between 2.4 million and 2.6 million ounces.