Stockchase Opinions

Shauna Sexsmith Kinross Gold K-T COMMENT Sep 08, 2009

Gold. Impressive production growth over the last number of years from 1.6 million ounces to about 2.4 million ounces. Have good projects that will be coming on stream after 2013 but until that time it has limited scope for production growth. Great stock longer-term but not for short-term production growth. (See Top Picks.)
$23.580

Stock price when the opinion was issued

precious metals
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WATCH
Late-December to mid-February is gold seasonality. Kinross has corrected with the sector, but it can do well. Let it run and see if it performs well. If not, then exit.
BUY ON WEAKNESS

Pulled back recently.
Has sold shares, but looking with current share price.
Wait a little before buying.
Expects gold to go up the next few years. 

DON'T BUY
ELD vs. K

Doesn't own either. Kinross has historical issues trying to right the ship, doing better recently. 

For ELD, a very high 60% of NAV is exposed to development risk. Recent mine is financed and built, but there's still execution risk. Trades at a discount on geopolitical risk too.

His preference is AEM, with one of the best teams and one of the best executions he's seen over the last decade.

BUY

Not his area of expertise. His firm has liked FNV for a while. Royalty business model makes a lot of sense. Very interesting space right now. Also likes Kinross.

BUY

Share price trend heading up and to the right. Very good for long term investors. Expecting further gains. Share price around $10 is reasonable. Good for long term investors. Gold prices very strong. 

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

We think K is an OK solid miner and recent quarterly results were strong. The company does have decently high debt with a net debt balance of $1.8B, but debt/equity ratio is only 0.36x which makes us less concerned. Free cash flows have been rising over the last few years and revenues have been growing quite nicely as well. We think it is still worth it to hold onto K given the company's progress in its drilling campaign and the recent strength of gold. It has had some issues in the past with mines but these have been largely cleared up. It also had some Russian exposure but these assets were sold in 2022. 
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TOP PICK

Bit of a correction last week. Investors have been going to gold for much of this year. #1 ranked in his Canadian universe of the TSX 60. Yield is 1.4%.

(Analysts’ price target is $13.90)
WEAK BUY

He doesn't own any gold stocks. If you want to enter, focus on large-cap, senior gold stocks. They offer more conservative growth, there's a lot behind them (more than just 1 mine or project), and they're in friendlier jurisdictions. Kinross just had great results. 

PAST TOP PICK
(A Top Pick Aug 07/24, Up 25%)

(Note the short timeframe.)
Still ranked very high on RSI. Gold stocks have had a bit of a correction since the election as uncertainty diminished and the USD and crypto took off.

HOLD

Whole bunch of decent assets, including a new one in Ontario. Stock will either go up of its own volition, or get taken over. Stock's performed well due to good cost containment. Good production growth and pipeline. Firing on all cylinders.