Wednesday Spotlight: Kinross Gold

Selling at a loss never feels good. After cutting CoreWeave and Rivian, and trimming Rocket Lab, I felt that sting too. It’s tempting to wait a little longer and hope the price turns around.

But hope isn’t an investment plan. Our rules helped me make the call, even though it wasn’t easy. They don’t take away the emotion; they help keep it from making the decision.

The exits and trim freed up cash. I don’t have to rush it into something else. I can wait until a company on my watchlist reaches my entry level and the setup fits my plan.

Kinross Gold is one company I’m watching. It’s a different kind of business from the stocks I just sold, but I’m not buying it just to put cash to work. I’m waiting for the price to reach the area I’ve marked and for the chart to support the setup.

Gold can behave differently from shares in fast-growing companies. Some investors hold it as a way to diversify, especially when they’re worried about inflation, government debt or financial uncertainty. But gold doesn’t always rise when markets fall, and it doesn’t pay interest or produce cash flow.

Kinross isn’t the same as owning gold. It’s a mining company. Its share price is affected by the gold price, but also by production, operating costs, mine development and the countries where its mines operate.

A miner can earn more when the price of gold rises faster than its costs. But costs can rise too, and mines can run into problems. That can make a gold miner more volatile than the metal itself.

Kinross operates mines in the United States, Brazil, Mauritania and Chile. In the second quarter, it reported strong cash flow and had more cash than debt. That gives the company room to manage its operations and invest in future projects.

There are reasons to be cautious, too. In September, Kinross lowered its production outlook for 2026 and 2027 after weather and operating problems at La Coipa and Round Mountain. It also raised its expected 2026 all-in sustaining cost to $1,850–$1,900 per gold-equivalent ounce. The company said its two largest, lower-cost mines, Paracatu and Tasiast, continued to perform well, but the lower production outlook and higher costs matter.

Kinross is due to report its third-quarter results on October 28. That should give us a clearer picture of production, costs and how the company is handling those problems.

I don’t want to buy just because the gold story sounds appealing. I want to buy only if the price gives me enough room for the risk I’m taking.

On the longer-term chart, I’m watching to see whether an old descending trendline, which the price has moved above, can now act as support. My read is that the pullback may be part of a larger correction after the run-up. That’s my interpretation of the chart, not a certainty.

On the monthly chart, I’m watching the area around the 50% Fibonacci level, near $20.29. My chart also shows the rising 50-month moving average and the long-term trendline coming together there.

If the price gets to that area and holds, I’ll watch how it behaves before making a decision. If it breaks below, I’ll reassess rather than assume the level will hold. I want the chart to confirm the setup, not just touch a line.

Kinross gives me exposure to a gold producer with strong recent cash flow and a solid cash position. It also has operating risks, and its latest outlook included lower production and higher costs.

That’s why it’s on my watchlist, not an automatic buy. I’ll keep following Kinross and wait for the price to reach my entry area and for the setup to fit my plan.

Stay cool and have a great rest of the week.

The Slow Capitalist is for informational and educational purposes only. It does not constitute financial, investment, legal or tax advice. The views are my own. Investing involves risk, including the possible loss of your principal. Consider your own circumstances and risk tolerance, and speak with a qualified professional before making investment decisions. I may hold positions in the securities discussed.