Q: In looking at old emails/threads on 5i research I see there’s been nothing in the past year for these two companies
What are your thoughts with these two companies with the recent gold prices and holdings for the next year?
What are your thoughts with these two companies with the recent gold prices and holdings for the next year?
5i Research Answer:
Kinross reporta tomorrow (Feb 18th). The valuation looks fine at 12X forward earnings, growth looks good on the top line at 36% expected in 2025 and 23% expected next year with EPS growth even higher. Margins are healthy in this environment and debt has declined in the last year. We think Kinross looks fine here.
ORE is smaller than Kinross at a $1.5 bln market-cap. It looks cheap but is less diversified in its operations and operates in higher risk jursidictions. In a strong gold environment, it will likely do fine but we are not sure the added risks here are 'neccessary' compared to other names.