Articles
Kinross Gold: BMO Resumes Coverage Following Great Bear Purchase
On January 21st, BMO resumed coverage on Kinross Gold (TSX: K) after its acquisition of Great Bear Resources (TSXV: GBR),
The post Kinross Gold: BMO Resumes…

On January 21st, BMO resumed coverage on Kinross Gold (TSX: K) after its acquisition of Great Bear Resources (TSXV: GBR), they call the deal accretive to Kinross. They had valued Great Bear Resources at US$2.1 billion versus the US$1.4 billion purchase price. BMO reiterated their outperform rating but lowered their 12-month price target to C$11.50 from C$12.
Kinross Gold currently has 13 analysts covering the stock with an average 12-month price target of C$12.64, or a 78% upside to the current stock price. Out of the 13 analysts, 3 have strong buy ratings, 9 have buys and 1 analyst has a hold rating on the stock. The street high sits at C$17.50, representing a 146% upside while the lowest price target comes in at C$8.
BMO says that Kinross is getting a great asset in the Dixie project, helping the company hit its 2.5 million GEO per year production target. Great Bear Resources originally was planning on an initial resource estimate early in 2022 with a PEA coming later this year. Now, Kinross has said the focus has shifted to infill drilling during 2022, then a resource and scoping study in late 2022 with production coming in late 2029.
They add that the deal makes perfect sense as the project, “fits well into Kinross’ project pipeline.” They say that Kinross has one of the deepest pipelines in their coverage, which is good for Kinross since they are now not pressured to rush into Dixie.
Based on what Kinross has provided BMO, they have elected to not change any of their estimates, though they say that they value the acquisition at US$2.1 billion, partly based on Kinross’ existing tax loss pools. They expect that development will last from 2022 to 2027, with construction starting in late 2027 and lasting till 2023, production to start in late 2029.
They expect 8.5 million ounces of minable resources with a development cost of under US$1 billion. Lastly, they expect the all-in sustaining cost to be between US$600 and US$800 per ounce, with it being closer to the higher end of the range during the first two years of operation.
Below you can see BMO’s updated full-year 2021 and 2022 estimates.

Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
The post Kinross Gold: BMO Resumes Coverage Following Great Bear Purchase appeared first on the deep dive.

Portofino Resources Enters the Lithium Big Leagues with Argentinian Government Agreement
The Argentinian government made a surprise announcement earlier this month…
Fortuna Announces Share Repurchase Program
VANCOUVER, British Columbia, April 28, 2022 (GLOBE NEWSWIRE) — Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) ("Fortuna" or the "Company") announced…
BMO Expects Inflation to Cloud over Miners Q1 Results
On April 18, BMO released their first quarter preview on their metals and mining coverage, asking the question “Should We
The post BMO Expects Miners…
-
Gold17 hours ago
Resources Top 5: Investors froth over ASX copper plays amid bullish demand outlook
-
Precious Metals8 hours ago
Dolly Varden Silver Mobilizes Three Drill Rigs to Commence an Initial 30,000 Meters of Resource Expansion, Upgrade and Exploration Drilling
-
Companies23 hours ago
Guy on Rocks: This small cap JV is right over the fence from Galileo’s new PGE discovery
-
Gold8 hours ago
Futures Jump Amid Optimism China’s Covid Lockdowns Are Ending
-
Financing News8 hours ago
Prosper Gold Reports Drill Results and Outlines Additional Targets at Golden Sidewalk Project, Red Lake, ON
-
Economics23 hours ago
LUNA Crypto Could Get a Second Life as Terra Mulls Potential Hard Fork
-
Drilling News22 hours ago
Nevada Copper Achieves Key Development Milestones: Paste Plant Commissioning Underway, First Paste Filled Stope; Open Pit Resource Definition Drilling Program Commenced
-
Financing News7 hours ago
ONE WORLD LITHIUM Jack Liftons Comments on the Lithium Industry and US Doe Patent