A large financial Investment Bank put out a public report this morning discussing the dividend coverge ratio of the top tier gold producers. Of them Agnico, Barrick, Goldcorp, Newmont, and Kinross... Kinross had the highest dividend coverage ratio at $1,300 gold and 1yr target of $1,700 gold. (for 2013) If gold stays at $1,300 KGC's coverage ratio is 5.40x earnings. At $1,700 gold it's 8.87x earnings. To me, this is extremely positive.
In addition, all the numbers assume NO CHANGE are made to the companies’ capital spending, exploration programs or dividend policies and no changes to working capital.
ALSO, they went on to say (for 2013) under $1,700 gold KGC trades at 3.51x operating cash flow per share (OpCFPS). AT $1,300 KGC trades at 5.77x OpCFPS. When you look out to 2014 the numbers are even more staggering. Very very cheap.