Kinross Unionized Workers' Strike at Tasiast Mine Suspended

Kinross Gold Corporation KGC announced that the strike by unionized workers at its Tasiast mine was suspended at the request of the government of Mauritania.

Notably, the shutdown of the Tasiast mine, which started on May 5 and ended on May 22, is not anticipated to have a material impact on the production in 2020 or the development of the 24k expansion.

Kinross said that it adhered to the three-year collective labor agreement, which was finalized in fourth-quarter 2019. Also, the company stated that it complied with all relevant labor codes and rigorously adhered to all government mandates associated with the coronavirus pandemic prior to the strike and will continue doing so.

Shares of Kinross have rallied 124.5% in the past year compared with the industry’s 90% growth.

 

 

On the first-quarter earnings call, Kinross withdrew its 2020 view in April although the coronavirus pandemic did not have any material impact on its operations during the first quarter. The company believes that the decision is prudent, considering the significant impact of the pandemic on the global economy, commercial activities and global health, and further potential business disruptions.

Nevertheless, favorable foreign-exchange rates and fuel prices are likely to provide some support and partly offset the company’s incremental costs, stemming from the contingency measures.

Kinross Gold Corporation Price and Consensus

 

Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote

Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Agnico Eagle Mines Limited AEM, Newmont Corporation NEM and Barrick Gold Corporation GOLD, all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Agnico Eagle has an expected earnings growth rate of 75.3% for 2020. The company’s shares have surged 59.6% in the past year.

Newmont has an expected earnings growth rate of 82.6% for 2020. Its shares have rallied 97.5% in the past year.

Barrick has a projected earnings growth rate of 64.7% for 2020. The company’s shares have rallied 120.3% in a year.

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