KGC - Kinross: A Tough Q3 With Limited Contribution From Tasiast

• Kinross released its Q3 results this week, reporting quarterly production of ~483,100 ounces at all-in sustaining costs of $1,225/oz.
• This translated to a 20% decline from the year-ago period, with the lower production related to the mill fire at Tasiast, and a decline in production at Round Mountain.
• Given the lower output, inflationary pressures, and a lower gold price, Kinross' margins & revenue fell sharply, but financial metrics should improve as Tasiast ramps to 21,000 tonnes per day.
• At approximately ~1.0x P/NAV, Kinross remains reasonably valued, but with the stock approaching a potential resistance level, I don't see a low-risk buying opportunity here at $6.60.

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