GTBAF - Kinross: Long-Term Outlook Improves Following Recent Acquisition

• Kinross Gold announced an agreement to acquire Great Bear Resources earlier this month for a price tag of ~$1.4 billion or ~$1.45 billion with contingent consideration.
• For a company that's yet to publish a maiden resource estimate, this looks like a hefty price tag, but I would argue it's a fair price given Dixie's upside.
• Notably, Kinross structured the deal with a large cash component and minimal dilution, with the potential for a ~19% increase to project NPV (5%) with barely ~7% share dilution.
• With Kinross having one of the lowest percentages of production from Tier-1 jurisdictions, and a mediocre growth profile at best, the addition of Great Bear could be a game-changer.

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