Is Kinross Gold (TSX: K) a cheap precious metal stock to buy under $8?

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Is Kinross Gold (TSX: K) a cheap precious metal stock to buy under $8?

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 Is Kinross Gold (TSX: K) a cheap precious metal stock to buy under $8?
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Highlights

  • Kinross Gold (TSX: K) has been drawing investors’ attention on the stock markets in the wake of some recent announcements.
  • Stocks of Kinross Gold have climbed over seven per cent this month alone, with 14.91 million shares exchanging hands on Thursday, February 17.
  • Having closed at a price of US$ 7.38 apiece on Thursday, Kinross stock was trading nearly three per cent higher at US$ 7.565 apiece at 9.50AM EST on Friday.

Kinross Gold (TSX: K) has been drawing investors’ attention on the stock markets in the wake of some recent announcements as well as the Ukraine-Russia conflicts that seem to be pushing investors towards the safety of gold.

Stocks of Kinross Gold have climbed over seven per cent this month alone, with 14.91 million shares exchanging hands on Thursday, February 17, a day after its posted its Q4 and full-year earnings results for fiscal 2021.

Also read: Barrick Gold (ABX) & Franco (FNV): 2 top TSX gold stocks to watch 

Kinross Gold (TSX: K) Q4 FY2021 financial results

The Toronto-based gold company produced 491,077 ounces of gold equivalents in Q4 FY2021, taking its total yearly production to 2.08 million ounces.

Kinross, which has greenfield and brownfield projects across the Americas, Russia and West Africa, recorded US$ 879.5 million in metal sales in the fourth quarter of FY2021, as compared to US$ 1.19 billion a year ago.

The gold miner, however, noted a net loss of US$ 2.7 million in the latest quarter, as compared to a profit of US$ 783.3 million in Q4 2020.

Kinross Gold also announced a quarterly dividend of US$ 0.03 apiece, due on March 24.

 

 Kinross Gold (TSX: K) Q4 FY2021 results

Kinross Gold’s stock performance

Having closed at a price of US$ 7.38 apiece on Thursday, Kinross stock was trading nearly three per cent higher at US$ 7.565 apiece at 9.50AM EST on Friday.

The gold stock was up by over 16 per cent from its 52-week low of US$ 6.35 (December 15, 2021).

Bottomline

While Kinross Gold has had a few obstacles to overcome amid the pandemic, it managed to generate total metal sales of US$ 3.72 billion in 2021.

The Canadian gold company, which has been running since 1993, said in its latest guidance that it expects to increase its production to the range of 2.65-2.8 million ounces in the fiscal year of 2022 to record “robust” free cash flow.

While exploring gold stocks, however, investors should ideally abide by their investment goals and understand the market dynamics to navigate the investment process successfully.

Also read: Is Canadian Tire (TSX:CTC) a retail stock to buy after Q4 sales growth?

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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