Founded in 1993, Kinross Gold Corp. (K.TO) is a senior gold mining company with a diverse portfolio of mines and projects in the United States, Canada, Brazil, Chile, and Mauritania. Headquartered in Toronto, Canada, Kinross focuses on delivering value through operational excellence, balance sheet strength, disciplined growth, and responsible mining. As a favored name within the many SIA matrix reports, K.TO is well known to many SIA practitioners. Currently ranked #3 out of 62 positions on the SIA S&P TSX 60 Index Report, shares have held up surprisingly well, even as much of the attention has shifted away from the precious metals arena in favor of a U.S. Dollar breaking past resistance levels on its point-and-figure chart (which requires a closer look), as well as the alternative asset class of Bitcoin, which is currently exhibiting outperformance against Gold, as illustrated in today’s Equity Leaders Weekly newsletter. The point-and-figure comparison chart of Kinross Gold (K.TO) versus the Gold Continuous Futures Contract (GC.F) highlights a zigzag relative performance over the past six years. To the far left, there is the first period of outperformance, where Kinross outperformed Gold, followed by the period from 2021 to early 2023, where Gold outperformed Kinross. However, a new period began in mid-2023, when Kinross started to outperform Gold bullion again. While the relative strength is currently under pressure with the comparison chart turning to a column of O's (the latest column on the right), the trend is still intact and continues to favor the K.TO equity at this time. This high level of relative strength has kept a bid under shares of K.TO, with the pullback in price being mild, down just -4.64% over the past month, but still showing a positive performance over the past quarter with a 9.41% return over the summer and a 76.27% YTD gain.
To further analyze Kinross shares, the point-and-figure chart identifies critical support and resistance levels for near-term decision makers. As the shares crossed over the $11.97 level this past summer, they broke past a notable long-term resistance point that extended back to mid-2020 highs. This level is now identified as supportive, with additional support at the triple top move at $12.71, both highlighted with green lines. The upper resistance level is extrapolated with vertical point-and-figure counting from prior trading ranges and drawn at the $16.44 level. However, the $15.19 (new high) level is also indicated as near-term resistance. Note also the color coding on the chart, where red, yellow, and green indicate the ranks of K.TO within the SIA S&P TSX 60 Index Report over time. The underperformance period is identified by the red oval, where shares experienced a significant correction. Shares of Kinross moved to green after this period, and with only a few minor retreats, they have been ranked high in the Favored (green) zone ever since 2023. In addition to the primary signal, relative strength, which tends to be a 6–18-month forward-looking indicator, the positive (green) SMAX score of 6 is indicative of outperformance against all asset classes, albeit a shorter-term indicator than the SIA report long-term rank.
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