Chinross gold (TSX: K) has risen by more than 100% in the past year. Investors who have missed the rally wonder if Kinross shares are still undervalued and good to buy well for a self-driven Registered Pension Savings Plan (RRSP) to get exposure to rising gold prices.
Kinross Gold -Sharing price
At the time of writing, Kinross Gold acts near $ 26.50 compared to $ 13 in December and less than $ 7 per share in early 2024.
The massive rally in the past 18 months is a relief for long -term shareholders of Kinross and a major victory for contrary investors who bought the share when it was lower than $ 4 in 2022 before the start of the recovery.
The rising gold prices have put a new steel wind behind the entire gold sector after a number of challenging years when the price of the metal fell and the rising production costs were to win profit. During the last flowering in the 2010 sector, Kinross and other major players went on a Binge Binge, who paid premium prices for assets while they load their balance sheets with debts. Gold rose from US $ 800 per ounce in 2008 to more than US $ 1,700 per ounce in 2012. It then went into a steady decrease and dropped under US $ 1,100 in 2015.
Kinross paid $ 7.1 billion in 2010 to acquire Mining Mining Red Bank, but then had to write down most of the value of the deal while he was tied to the large debt tax to complete the purchase. The Tasiaast -in Mauritania, who would be the crown jewel of the Red Back deal, turned out not to be the jewel that it was for the company, but it finally produces part of its original potential. It is the second highest producing mine for Kinross in the first half of 2025.
Kinross-investors looked at the share price from $ 24 in 2008 to only $ 2 at a certain point in 2015. Changes in management and income of non-core assets in the portfolio, combined with a rebound in gold prices, enables the company to strengthen its balance.
The gold price has risen from US $ 1,200 in 2018 to the current price near US $ 3,400 per ounce. The Golf stimulates high margins for Kinross in his portfolio of mines at a time when investments have begin to deliver the expected output wins in recent years. In the WinSt report of the second quarter (Q2) 2025, Kinross said that in the quarter 519,391 our gold sold compared to 505.122 Ounces in the same period last year. Adapted net income in the quarter ended up at US $ 541 million compared to $ 174.7 million in Q2 2024.
The management uses surplus money to buy back at least US $ 500 million in stock this year. The board also pays an annual dividend of US $ 0.12 per share.
Time to buy Kinross?
Gold Bulls who think that the rally in the precious metal will take place for several years should probably stick to the stock. Kinross has finally recovered from his large blunders from 15 years ago and is well positioned to take advantage of the current market conditions.
However, a quick look at the historical trends would suggest that it might be wise for investors who have bought the share at much lower levels to make some profit.
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