Why is Kinross Gold (TSX: K) trending amid Russia-Ukraine war?

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Why is Kinross Gold (TSX: K) trending amid Russia-Ukraine war?

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Why is Kinross Gold (TSX: K) trending amid Russia-Ukraine war?
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Highlights

  • Kinross Gold (TSX: K) is trending on the stock markets after announcing the suspension of its Russian mining operations amidst the growing tensions between Russia and its neighbour Ukraine.
  • On March 2, the company declared suspension of its mining operations at the “Udinsk” development project site, considering the “tragic” war situation.
  • The company added that it is in the process of suspending its Kupol operations, considering its employees’ safety and minimizing environmental impact.

Kinross Gold (TSX: K) is making headlines following the announcement that it is suspending its Russian mining operations amid the growing tensions between Russia and its neighbour Ukraine.

Following this development, stocks of the Canadian gold company surged by nearly four per cent on Wednesday, March 2.

What did Kinross (TSX: K) say?

On Wednesday, March 2, the company that it is suspending its mining operations at the “Udinsk” development project site, considering the ongoing war situation.

Kinross added that it is in the process of suspending its Kupol operations, considering its employees’ safety and minimizing environmental impact.

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Now, let us glance at Kinross Gold’s performance.

Kinross’s financial performance in Q4 FY2021

The Toronto-based gold company posted US$ 879.5 million in metal sales in Q4 FY2021, i.e., down from US$ 1.19 billion recorded in Q4 2020. The miner incurred a net loss of US$ 2.7 million in the latest quarter against a profit of US$ 783.3 million a year ago.

Recently, on February 24, Kinross completed the acquisition of Vancouver-based Great Bear Resources to advance its future growth strategy.

The US$ 8-billion market cap company will pay a quarterly dividend of US$ 0.03 apiece on March 24.

Kinross Gold (TSX: K) Q4 FY2021 results

Kinross’s stock performance

Stocks of Kinross Gold swelled by about eight per cent month-to-date.

On Wednesday, the gold stock closed at US$ 6.88 after noting a day high of US$ 6.91 and a daily trade volume of about six million shares.

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Bottomline

Kinross expressed “sympathy” and support towards Ukrainians and also donated US$ 1 million to the “Canadian Red Cross Ukraine Humanitarian Crisis Appeal”. It also intends to follow all sanctions and legal frameworks declared by the governments.

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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