KGC - Kinross: Enviable Project Pipeline Offset By Operational Setbacks
- Kinross Gold is one of the worst-performing senior gold producers since Q3 2020, down more than 41% vs. a 30% decline in the Gold Miners Index.
- The underperformance can be tied to setbacks related to pit instability at Round Mountain, and a fire at the company's flagship Tasiast operation that has sidelined the mill until Q4.
- However, at a P/NAV ratio of just over 0.80x, these setbacks look to be mostly priced in, especially considering the meaningful growth from key projects over the next few years.
- Given Kinross' reasonable valuation and solid growth outlook, if it can execute on key projects, I would view any pullbacks below US$5.20 as low-risk buying opportunities.
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Kinross: Enviable Project Pipeline Offset By Operational Setbacks