Boston, MA 10/25/2013 (wallstreetpr) – Kinross Gold Corporation (USA) (NYSE:KGC), is into the business of gold mining and various related activities pertaining to the same, including the exploration and the acquisition of gold tenements, the excavation and processing of ore that contains gold, and recovery of gold mining areas.
As the gold is, at the moment, facing heat of the downturn in the market, this causes a problem which is faced by every player who is in this industry, and they are feeling the heat. Miners have lost their luck in the gold market across the globe, even after a positive expectation of a future demand or prospect in the market.
KGC shares have been declining, and that is worrying investors. Problems in gold markets have truly been reflected in the company finances. As a result, it has witnessed that KGC shares have declined in their market value to $5.31 bn.
Because of the cold gold market, it is believed that the companies in this industry have to embrace such strategies which will help them keep out of the red line. For KGC these strategies has led them to set aside some of the projects and decline in production. The company is also considering many restructuring activities in order to improve the performance.
The company has already downsized Mauritania and the regional office in Las Palmas (Spain). This announcement has affected 300 employees.
Owing to the financial pressure, KGC’s balance sheet position has been deteriorating. Due to the weak gold prices, the company is throwing itself off balance.
The drag in congress is indirectly adding more pain to the gold market. Analysts are issuing that, currently in this kind of cold gold market, it will be better to hold gold stock and not to trade, as in the near future gold will again bring its shine into the market. By keeping this strategy in mind, keeping the company market value at the current level for a while till the time the gold market stabilizes will be more doable, this will be beneficial for investors.
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