Opinion on  Kinross Gold Corp (KGC)     Sector: Basic Materials  >  Industry: Gold & Silver
Kinross Gold Corp

Guru: Gordon Pape
Newsletter: The Canada
Report
BUY: Kinross Gold Corp.
(nyse: KGC)
Kinross Gold is the third-largest primary
gold producer in North America in terms of
reserves. Based in Toronto, the company has
been in business since 1993. Kinross has three
new projects in the works which are scheduled
to come on stream over the next two years, in
Siberia, Chile, and the state of Washington.
Management estimates that as these projects
ramp up, production will increase more than
60%, from 1.6 million ounces of gold in 2007
to 2.6 - 2.7 million ounces in 2009. At the same
time, production costs will drop, making
Kinross unique among major gold producers.
This should result in above-average profit
gains, as long as the bottom does not fall out of
the bullion price. I see that as unlikely, as I
expect the U.S. dollar to remain weak on international
currency markets.
Kinross shares reached a 52-
week high of $27.40 on March 17
before pulling back as the price of
gold dropped by more than $100
an ounce after cracking through the $1,000
barrier. This has created an excellent buying
opportunity.
KEY STATS:
Recent Price: $19.85
52 Week High: $27.40
52 Week Low: $9.87
Market Cap ($BIL): $14.6
2007 Revenues ($BIL): $1.1
2007 Net Income ($MIL): $316.20
2007 EPS: $0.56
2007 Gross Margin: 34.1
2008 Est. EPS: $0.81
2008 Est. P/E: 29.4
Dividend Yield (%): 0.3
Short Interest/float (%): 1.6
Forbes Gurus---25 Stocks, ETFs and Funds for the Second Half 2008
16
(nyse: KGC)
Kinross Gold Corporation engages in mining and processing gold and silver ores with a principal focus on gold, as well as in the exploration for and the acquisition of gold bearing properties in the Americas, the Russian Federation, and internationally. The company owns a 100% interest in the Fort Knox open pit mine, mill, and mineral claims covering approximately 19,682 hectares located to the northeast of the City of Fairbanks, Alaska in the United States; and an 80% interest in the Gil property mineral claims comprising approximately 2,521 hectares located contiguous to the Fort Knox claim block. It also holds a 100% interest in the Paracatu mine, including an open pit mine, process plant, tailings dam area, and related surface infrastructure located to the north of the city of Paracatu, situated in the north western portion of Minas Gerais State, Brazil; and the Maricunga heap leach mine consisting of 5,900 hectares located in the Maricunga District of the Region III of Chile. In addition, the company owns a 75% interest in the Kupol gold and silver project in the northeast region of the Russian Federation and a 49% interest in the Cerro Casale project located in the Maricunga District of the Region III of northern Chile. Kinross Gold Corporation also holds a 50% interest in the Round Mountain gold mine in Nevada and a 100% interest in the Kettle River mine in Washington, the United States; a 50% interest in the Crixas mine situated in Brazil; a 100% interest in the La Coipa mine located in the Atacama Region of northern Chile; and a 90% interest in the Julietta mine in the Russian Federation. As of December 31, 2007, its proven and probable mineral reserves were 46.6 million ounces of gold and 77.0 million ounces of silver. The company was founded in 1972 and is based in Toronto, Canada.

Trades for 18-Jul-2008