Hey everyone, Crypto Crusader here with a gold miner analysis:
Kinross gold has been on a tare as of late ever since the equities markets as a whole have faced growing uncertainty and volatility. Kinross has secured it's spot as the fourth largest gold miner, alongside having the single largest "open pit mine" in the entire United States. Open pit mining employs lower degrees of difficulty in the scheme of the mining sector in regards to total dirt turnover to mine a particular quota of gold. With operations growing in bald mountain and reaching record production, along with others like Fort Knox mine in Alaska, and record production at its Tasiast mine in Africa, Kinross is setting itself up for an incredible 2019. Production slowed in Africa with political uncertainty, however, those issues seem to be mostly water under the bridge. Kinross has a unique portfolio of mines across the entire world with operations in North America, Southern America, Africa, and Russia. Kinross also recently acquired a hydroelectric plant in Brazil just north of 200 million dollars, in the short term that increased their liabilities by a considerable amount, however, in the long-run Kinross as a company will benefit from cheaper power for its operations reducing its AISC (all in sustaining cost) at this mine location. With gold prices slowly going up, along with political uncertainty in the entire world, and constant fear of the traditional financial markets having a collapse in the near future, Kinross is an incredible hedge.
From a technical perspective Kinross is an amazing purchase even at current levels. To start, we can see under its institutional ownership that VanEck and Associates have re-upped their position with over 100 million shares as of December 31st, 2018. Its no coincidence that large institutional purchases are typically at times when a company is distressed, and hopes that the best bargain has been obtained. On the weekly, and daily candles alike, we can see that this buying volume was the highest in the stocks history. Approximately every dollar gold moves up, Kinross post expenses, produces around an extra 2.5 million of revenue based on their approximation of 2.5 million ounces of gold mined per year company wide. It has yet to truly breach its lower end long-term trend line, while at the same time a massive MACD crossover could be in the works. Its difficult to tell on this scale of the chart, but the MACD cross is approaching a neutral level at 0.0, however, a positive integer of 1.0 or more on the MACD would allow incredible gains for the stock. On the low side of its RSI a hidden divergence is occurring while at the same time a potential bull pennant is forming on the RSI as a secondary indicator of a further move upwards.
Thanks for reading and happy trading,
Crypto Crusader
Kinross gold has been on a tare as of late ever since the equities markets as a whole have faced growing uncertainty and volatility. Kinross has secured it's spot as the fourth largest gold miner, alongside having the single largest "open pit mine" in the entire United States. Open pit mining employs lower degrees of difficulty in the scheme of the mining sector in regards to total dirt turnover to mine a particular quota of gold. With operations growing in bald mountain and reaching record production, along with others like Fort Knox mine in Alaska, and record production at its Tasiast mine in Africa, Kinross is setting itself up for an incredible 2019. Production slowed in Africa with political uncertainty, however, those issues seem to be mostly water under the bridge. Kinross has a unique portfolio of mines across the entire world with operations in North America, Southern America, Africa, and Russia. Kinross also recently acquired a hydroelectric plant in Brazil just north of 200 million dollars, in the short term that increased their liabilities by a considerable amount, however, in the long-run Kinross as a company will benefit from cheaper power for its operations reducing its AISC (all in sustaining cost) at this mine location. With gold prices slowly going up, along with political uncertainty in the entire world, and constant fear of the traditional financial markets having a collapse in the near future, Kinross is an incredible hedge.
From a technical perspective Kinross is an amazing purchase even at current levels. To start, we can see under its institutional ownership that VanEck and Associates have re-upped their position with over 100 million shares as of December 31st, 2018. Its no coincidence that large institutional purchases are typically at times when a company is distressed, and hopes that the best bargain has been obtained. On the weekly, and daily candles alike, we can see that this buying volume was the highest in the stocks history. Approximately every dollar gold moves up, Kinross post expenses, produces around an extra 2.5 million of revenue based on their approximation of 2.5 million ounces of gold mined per year company wide. It has yet to truly breach its lower end long-term trend line, while at the same time a massive MACD crossover could be in the works. Its difficult to tell on this scale of the chart, but the MACD cross is approaching a neutral level at 0.0, however, a positive integer of 1.0 or more on the MACD would allow incredible gains for the stock. On the low side of its RSI a hidden divergence is occurring while at the same time a potential bull pennant is forming on the RSI as a secondary indicator of a further move upwards.
Thanks for reading and happy trading,
Crypto Crusader