Gold Miners Barrick and Kinross Technical Review: Victims of
Improving Economy?
LONDON, January 30, 2013 /PRNewswire/ --
Gold and other
precious commodities have their heyday in times of economic
uncertainties. In the past decade, gold provided jaw-dropping
returns, but lately, the returns have been much more muted. To a
certain extent, the plateau in gold prices has been caused by
relatively secure economic conditions. StockCall has issued
comprehensive technical analysis on Barrick Gold Corp. (NYSE: ABX)
and Kinross Gold Corp. (NYSE: KGC). These free reports can be
accessed for free at
http://www.stockcall.com/register
Stabilized gold prices are not only making investors wary of the
future of gold, but are also causing trouble with gold companies,
especially gold mining companies. Barrick
Gold, one of the biggest gold producers in the world,
declined steadily through the last year. Kinross Gold also lost its value, despite
providing positive financial numbers. Register with us today and
access a database of free reports including today's technical
coverage of Kinross Gold at
http://www.StockCall.com/KGC012913.pdf
Barrick Gold to Optimize Asset Mix
Barrick Gold Corporation stock is showing weakness. Its negative
return of over 25 percent last year is also in contrast to gains
shown by gold. While 2012 was not as good as 2011 for gold, this
gold producer fared even worse. In 2011, gold gains were mainly
driven by the uncertainty in the U.S. and global economy. However,
these fears were curtailed, to a certain extent, in 2012, leading
gold prices to oscillate in a rather narrow range. Prices are also
likely to remain stable in the near future as has been shown by the
recent gold price reaction to positive job data. Gold prices
stumbled after the release of data showing lowest jobless claims in
5 years. The technical analysis report on Barrick Gold is available for free upon sign up
at
http://www.StockCall.com/ABX012913.pdf
It is not just the muted prices of gold that spells troubles for
Barrick Gold. The company is also
dealing with rising operating costs. Irrational exuberance in gold
price forced gold mining companies to take risky bets and most of
these companies burnt their fingers. Barrick Gold is also attempting to optimize its
asset portfolio. However, the process does not look promising as
the company struggled to close out its deal for the African assets
with China National Gold Group Corp. On the upside, the stock
trades at Price Earnings ratio of 9.79, making it a relatively
inexpensive stock in comparison to its peers. But with internal
inefficiencies and pressure on gold prices, the stock is likely to
remain laggard in the near future.
Kinross Struggles with Rising Operating
Costs
Kinross Gold Corporation [Free Report on KGC](1) is
another victim of strained gold price. Like other gold companies,
Kinross is also dealing with extravagant portfolio expansions and
rising operating costs. The company had to write down its Red Back
Mining investment by $2.5 billion. It
had paid $7 billion for the property
in 2010. This write down had negative impact on the company's
bottom-line.
Kinross has overall poor track record of providing return to its
investors. While it offers about 2 percent dividend yield, the
stock has lost about 50 percent of its value since its listing in
1981. Its margins are also shrinking due to depressed gold prices
and increasing operating costs and the trend is likely to continue
into the near future.
The operating inefficiencies of the gold mining companies are
likely to deprive them of any benefit arising out of gold price
increase.
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- Kinross Gold Corporation Technical Analysis [
http://www.StockCall.com/KinrossGoldCorp012913.pdf ]
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