Stifel Canada on Friday maintained its buy rating on the shares of Kinross Gold (K.TO, KGC) and its C$45.00 price target after the company said it will go ahead with three new mining projects.
"Kinross announced that it is proceeding with the construction of three organic growth projects: Round Mountain Phase X and Bald Mountain Redbird 2 in Nevada, and the Kettle River-Curlew project in Washington State. Impact: Positive: Projects are expected to contribute significantly to Kinross' U.S. production profile and maintaining its GEO production rate of 2.0Moz/year into next decade, with expected GEO production of 400Koz/year between 2029-2031 and a total of 3.0Moz between 2028-2038 based on the initial mine plan inventories. Round Mountain is our preferred project update with 40% IRR at $3,200/oz gold (67% at $4,300/oz) with significant potential for both proximal growth and extension of the resource down-dip as demonstrated by existing intercepts outside of the initial reserve and resource. Combined NPV (all three projects) at $3,2000/oz of $2.056Bln comprises an NPV/Capex ratio of 2.6x at Round Mountain, 1.1x at Curlew, and 1.0x at Redbird 2," analyst Ralph Profiti wrote.
(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)
Price: 46.06, Change: -0.13, Percent Change: -0.28
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