Kinross: Canaccord, BMO Raise Price Targets Following Investor Call

On October 20th, Kinross Gold (TSX: K) held an investor call to give more details on their recent three-year guidance and long term pipeline opportunities. Carey MacRury of Canaccord commented on the event, saying, “overall, while many of the opportunities are still early stage, we view the update as positive, with more confidence that Kinross can continue to extend its production profile into the future. K remains a top pick among the senior producers.”

Simultaneously, the firm upgraded their long term price target to C$17 from C$16 and reiterated their buy recommendation on Kinross Gold.

Over at BMO Capital markets, analyst Jackie Przybylowski also commented on the event, stating, “the longer-term plan is flexible. It draws from a wealth of potential development opportunities — as the projects are studied and de-risked we will have increasing clarity to the costs and makeup of this pipeline. We anticipate more information on these projects over the coming quarters. We maintain our Outperform rating and we have raised our target price to US$14.50/share (from US$14.25).”

In the call, Kinross said that they expect to produce an average of 2.5 million ounces of gold equivalent annually between 2020 to 2029. MacRury said that the base case is basically in line with their model but that they only include Lobo Marte in their model. He also says, “We view the risk profile of the company’s expected projects as relatively low given the use of existing infrastructure,” and sees future upside from Kinross’s base case because of potential future resource conversions.

Meanwhile Przybylowski says that the presentation “hit the right notes in balancing the themes of disciplined capital allocation with longer-term project development.”

Przybylowski adds that the information provided was “more of a road map than a detailed plan (so far).” She explains that this helped investors get a better understanding of the options that Kinross will consider for developing its pipeline, while it does not deliver on specific details on most projects, especially those in the early stages. Because of this, she writes, “the market probably still will not capture the full upside value from these options yet, but we recognize this as a good starting point.”

Przybylowski changed her revenue and EPS forecasts just slightly for 2020. The new revenue and EPS forecasts are $4.367 billion and $0.80, revised from $4.416 billion and $0.76.

Below are Canaccord’s estimates for each site.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Is Gold’s Bull Market About to Hit Junior Stocks? | Ken Armstrong – Westhaven Gold

Surge Battery Metals: The Nevada North Lithium PEA

Silver @ $36 & We’re Still 200M Oz Short | Paul Andre Huet – Americas Gold and Silver

Recommended

Goliath Resources Closes Out Funding Round With Total Gross Proceeds Of $27.1 Million

Silver47 Kickstarts 4,000 Metre Drill Campaign At Red Mountain Project

Related News

Skeena Resources Announces Fully Subscribed $20 Million Flow Through Financing

Skeena Resources (TSX: SKE) this morning announced that it will be conducting a flow-through financing....

Wednesday, February 24, 2021, 09:15:23 AM

Eldorado Gold: Haywood Reiterates $19.75 Price Target

On December 15th, Eldorado Gold (TSX: ELD) announced the results of the Skouries Project feasibility...

Wednesday, December 29, 2021, 03:31:00 PM

Canaccord Genuity Downgrades Charlotte’s Web Price Target To C$7.75 From C$9

Yesterday, Charlotte’s Web Holdings (TSX: CWEB) reported their second-quarter 2020 financials. Consolidated revenue came in...

Tuesday, September 15, 2020, 11:33:48 AM

Lodge Resources Acquires Lower 48 Resources, Lehmi Gold Project

Lodge Resources (CSE: LDG) announced this morning that it has completed the acquisition of the...

Thursday, April 16, 2020, 02:43:13 PM

Gold Rush: Volume Bought By Central Banks At A 5-Decade High

According to data provided by the World Gold Council (WCG), demand for the precious metal...

Sunday, January 1, 2023, 09:00:00 AM