has some AEM and FNV
and some xgd (etf)
like to add Kinross (smaller cap)
able to tolerate the risk, what would be a good entry point, street consensus?
thanks
Michael
Average target price is $16.09; It had a good Q3. Kinross' better-than-expected 3Q performance -- with both production and cost guidance reiterated -- boosts confidence that the company could be well positioned to achieve a bumper 4Q. The uplift in output from the Manh Choh project which commenced in July, as well as the robust gold-price environment, could lift earnings by 5% sequentially. Additionally, consensus Ebitda of $800 million could face further 8-10% upside should spot gold prices of $2,680 per ounce hold through the rest of the year. At current bullion spot prices, Kinross could achieve another record free-cash-flow period in 4Q, which should see the company continue faster-than anticipated deleveraging. It has never been our favourite, but it has good leverage to gold and is priced very well at 14X earnings, with a 1.21% yield as well. We think $13.25 would be a good buying range. Consensus calls for EPS of 68c this year and 85c next year.