TD analyst reports, * Kinross Gold Corp. (K-T, “outperform”) with a $13 target, up from $12.50 and above the $12.57 average.
Analyst Michael Parkin: “Kinross trades at a significant discount to senior peers on a P/NAV and EV/EBITDA basis, which we continue to believe is unwarranted. Our thesis hinges on a number of factors including (1) a strong operational track record, with guidance achieved for nine consecutive years, with the first recent miss being 2021, coupled with senior peer best year-over-year production growth potential (up 27 per cent for 2022 vs. 2021), with unit costs expected to fall with the significant production growth; (2) a healthy balance sheet; (3) strong multi-year FCF generation, coupled with a 2022 FCF yield (after dividends) of ~16.4%, well above the senior producer average; (4) excellent exploration potential at producing and development projects; and (5) a trustworthy and disciplined management team that has recently demonstrated the ability to de-risk its operations (Tasiast mill restarted and on schedule to achieve 21 ktpd by the end of 1Q22).”