Kinross Gold undervalued, says Green Tower Investments

Kinross Gold undervalued, says Green Tower Investments
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CALGARY – The metal and mining industries have been one of the most popular ones with respect to profits in the investors’ circles. Before the pandemic hit us, these two sectors were booming high because of the increasing demand. Although these two sectors seem the same initially they have a very fine line dividing the two. It has been seen that most of the leading companies in these two sectors have adopted strategies which go around keeping the costs low so that sales and profits can be maximized.

Green Tower Investments analyst takes a closer look at the two companies that have managed to stay afloat and show prospects of a good future.

It has been seen that these two companies have suffered massively because of the pandemic and so have their investors. There came a time when due to lock down all factories had to be kept closed for weeks and even months. This heavily impacted the economies of countries but fortunately enough, now the vaccine is all set for damage control. Below are two mining and metal stocks that might help you get your hands on high dividends in the future.

Nucor Corporation

Nucor is a steel producing company which is based in Charlotte, North Carolina. This company is very well known throughout the United States because they are the largest producers of steel in America. They also happen to the largest mini-mill steelmaker. Apart from this, they are the biggest scrap recyclers in entire North America. The company was founded in the year 1940 by Ransom E. Olds. He is the one who created Oldsmobile. Nucor Corporation was originally the REO motor company but it evolved to become Nuclear Corporation of America. These days it is the world-famous Nucor Corporation.

In the year 2020, the company made a revenue of 20.139 US Dollars, an operating income of more than 800 US dollars and a net income of more than 700 million US dollars. The Nucor Corporation had a price to earnings ratio of 15. Currently, they are trading well below the peak value because of the unfavourable conditions. Pandemic-borne problems have severely damaged the supply chain and that is what leads to the prevalence of uncertainties in the area. In order to fight the declining earnings, the company has increased their prices and according to our experts, this measure has proved to be beneficial and successful so far. This can be said in the light of profits which increased by 25% only in the first quarter of the year 2021 as compared to the first quarter of last year. They have also reported earnings per share of 3.1 billion this month. This entire scenario suggests that the company was initially struggling with profits because of Covid 19 but now they are clearly on their way to make large profits. Our experts say this is a stock that can be regarded as Undervalued and can prove to be a good buy in the time to come.

Kinross Gold

Kinross is a silver and gold producing company which is based in Canada. The company was founded in the year 1993, by Mr Robert Buchan and has headquarters in two places in Canada; Ontario and Toronto. The company has been on a mission of business expansion and they are operational in countries such as Russia, Canada, Chile, United States and Brazil. Currently, Kinross has a total of eight operational gold mines. The Investigating News placed it fifth on their “10 top gold mining companies” list.

According to data, the company made a profit of 3.303 billion US dollars in the year 2017 and this reflects how prominent they stand in the mining industry. In 2019, the revenue jumped to 3.49 billion US dollars which were an 8.86 per cent high of 2018’s revenue which was 3.213 billion US dollars. Reports regarding the company’s meta deposits say that they have more than 79 million ounces of both gold and silver which might be proven or probable under its control. Currently, the company has a market cap of more than 9 billion dollars. In the last quarter of the last year, the company had stakes worth a total of 649 million dollars. These statistics are a clear reflection of the fact that Kinross can prove to be quite beneficial for investors if the conditions do not get any worse due to pandemic.

With the vaccine in the market, we have seen that the businesses which got affected by the pandemic are finally ready to get back but this might take some time keeping in mind the fact that some countries are still facing massive waves of new covid variants. Despite the uncertainties, experts are optimistic regarding these two stocks soaring high soon.

We seek Safe Harbor.

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