Kinross Gold Upgraded by BMO

Kinross Gold received an investment-rating upgrade from BMO Capital Markets to outperform from market perform, with the firm saying the move was based on the gold miner’s “steady execution and relative valuation, and in recognition of the company’s success at advancing brownfield opportunities that continue to improve visibility to sustain current production levels.”

BMO raised its price target on the stock to $5 per share from $3.75, bringing the target above the stock’s Friday closing price of $4.22 from below it. In a note to clients, BMO said “while reserve life at a number of operations remains a concern, we expect Phase W at Round Mountain, heap leach expansion at Bald Mountain, and Tasiast Phase 2 expansion to support current production levels for longer.” The firm added: “If we look back two years, our forecasts had production beginning to decline post 2019. Over the intervening time, KGC has extended current production levels out to 2021.”

Leave a Comment