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Kinross Gold Corp T.K

Alternate Symbol(s):  KGC

Kinross Gold Corporation is a Canada-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. The Company’s projects include Fort Knox, Round Mountain, Bald Mountain, Manh Choh, Paracatu, La Coipa, Lobo-Marte, Tasiast and Great Bear projects. Fort Knox is an open-pit gold mine located near the city of Fairbanks, Alaska. Round Mountain is a long-life, open pit mine located in Nevada. Bald Mountain is an open pit mine with an estimated mineral resource base located in Nevada along the southern extension of the prolific Carlin trend. Manh Choh project is in Alaska, located approximately 400 kilometers southeast of Fort Knox. Paracatu is a long life, cornerstone operation located near the city of Paracatu in Brazil’s Minas Gerais region. It operates the La Coipa mine in the Atacama region and owns the Lobo-Marte development project, which is located approximately 50 kilometers southeast of La Coipa.


TSX:K - Post by User

Post by Goodtoreadthis1on Dec 13, 2021 4:18pm
364 Views
Post# 34226517

Lazy ANALyst at RBC Capital Mkts misses on KGC Dixie purchas

Lazy ANALyst at RBC Capital Mkts misses on KGC Dixie purchasAs a GBR stockholder I relished Chris Taylor's periodic valuations of Dixie which were ALWAYS highly detailed and packaged with incredible numbers of FACTS. The RBC ANALyst covering KGC obviously was NOT paying attention to Chris Taylor's periodic reports on Dixie's value. 

Chris pummeled us with the fact that Dixie was showing itself -by drill results -to be TWICE as big as HEMLO which to date has produced 21 million OZ of gold.  CT told us that gold STARTED at the edge of the 8 foot deep gravel pit, while Hemlo gold started 100s of meters below surface. Hemlo is STILL producing thousands of OZ many many years after going into production. 

An excerpt from the highly questionable RBC report reads like this- RBC calculates that Dixie's ultimate success as a 500,000-ounce operation at all-in sustaining costs of $700/oz over either a 15- or 25-year timeframe, with capital and timelines consistent with management guidance yielding a 6-8% IRR to Kinross at $1,500/oz. Dixie's net present value, discounted at 10%, was estimated at $700 million. 

Chris T has already told us that HEMLO is likely to have 42 mil oz of gold over system life. Does anyone know or expect to know anyone who will sell them an OZ of gold today or in 2029 when Dixie starts producing -- for $1500 an OZ ?  Using that number makes RBC's report pure nonsense. If annual Dixie production is 500,000 OZ and AISC is $700 an OZ  with today's gold at $1780, we have an annual Dixie profit of  $525 mil  for 15 or 25 years which comes to  7.8 Bil or  $13 .1 Billion. 

Credit Suisse pointed out that only 10% of the Dixie property has been drilled to date. 

So KGC is swapping $1.4 Bill of todays dollars for either $7.8 Bill or $13.1 Bill NET PROFIT DOLLARS in the future and RBC values that as a negative for KGC .   It's seems the RBC guy just did not want to do a through job on this valuation which Chris Taylor had already done for him.  
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