Is Kinross Gold (KGC) the Better Gold Stock Investment Right Now?

Several mining stocks have benefitted from the lustrous gold rush, and one such stock is Kinross Gold (NYSE: KGC). For investors looking for value stocks in the gold sector, this Toronto-based stock stands out with several tailwinds that will boost the stock higher.

The Federal Reserve recently said that lending rates are likely to remain low through 2023, and the central bank will continue buying Treasury bonds each month. This coupled with the COVID-19 fiscal stimulus will put the dollar under pressure. Since there are inverse gold and dollar movements, then it means gold prices will continue increasing.

Besides the high gold price, the mining company is better positioned because of a healthier balance sheet and enhanced operating efficiency. The company produced 2.37 million ounces of gold in 2020, and Tasiast production is improving, with Fort Knox improvements also enhancing output. Most importantly, the company continues to pay its debt. Once it eliminates its $500 million debt due this year and continues to boost its $1.21 billion cash and equivalents, it is likely to be net-cash positive by year-end.

Anthony Gonzales

Biotech, Tech, and Crypto reporterAnthony Gonzales brings 3 years of experience in helping grassroots, mid-sized organizations and large institutions strengthen their management and resource generating capacities and effectively plan for the future. He is also a mentor and professional advisor to artists working in all disciplines. He is the gold medalist from St. Marco University of Science and Technology in the Bachelors of Financial Management as well.