Orlando, FL -- (SBWIRE) -- 07/09/2013 -- Hot Stock Profits provides investors and traders with valuable trading tools and content as well as micro-cap stock alerts via eMail and text messages. To Join Our Text Message Alerts Service Just Text The Word Stocks To 555888 From Your Cell Phone. Our Focus Today Is On: Kinross Gold Corporation (USA) (NYSE:KGC), Frontier Communications Corp (NASDAQ:FTR).
Kinross Gold Corporation (USA)(NYSE:KGC) has got out from its Fruta del Norte gold mining project in Ecuador thanks to the greed of the Ecuador government which wanted to gain more from the project.
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Kinross bought the Fruta del Norte project in 2009 for $1.2 billion when it acquired Aurelian Resources. At the end of 2012, Kinross had 6.715 million ounces of gold in proven and probable reserves, as well as 67,000 ounces of measured and indicated gold resources. It also had proven and probable resources of 9 million ounces of silver with measured and indicated resources of 1.412 million ounces.
However, the government of Ecuador imposed an excessively heavy windfall profits tax that seizes 70% of all profits above the negotiated base price for the mined metals, rendering the business unviable for large miners.
Similar scenes are being played out in other South American countries. Take the case of Barrick Gold. It was forced to stop its Pascua-Lama project after disagreements with the government and indigenous tribes. In Peru, Newmont Mining’s Conga gold project stopped, while Vale had to stop its iron ore project in Argentina.
Meanwhile, Zacks Equity Research maintains their Neutral recommendation on Frontier Communications Corp(NASDAQ:FTR). The company has a Zacks Rank #3, equivalent to ‘Hold’.
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On the positive side, the rural communication service provider is likely to benefit from customer retention measures, market share gains, broadband expansion and better sales and marketing initiatives.
Zacks is also optimistic on Frontier’s collaborations with companies such as AT&T Inc. to offer differentiated products. Frontier has engaged with SMEs, educational institutions and hospitals to promote its CPE (customer premises equipments) as well. The company’s latest deal is with Asurion, a major technology protection company.
However, the research firm is cautious when it comes to regulatory and competitive challenges as well as the high expenditure on promotional activities. They also think that access line losses might limit the company’s performance.
The research firm sees earnings pegged at 6 cents per share for the second and third quarters of 2013.
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