Kinross (KGC) Granted Right to Earn 70% Interest in Launi East
Kinross Gold Corporation KGC has been granted the right to acquire up to an undivided 70% interest in the Launi East Property, located southeast of Aurion Resources Ltd.’s 100%-owned Risti Property. This right has been granted in a formal definitive option agreement that Aurion Resources Ltd. has signed with KGC.
In accordance with the terms of the agreement, Kinross can acquire a 70% undivided stake in the Launi East Property by spending a minimum of $10 million on exploration on or before the deal’s seventh anniversary. Kinross has agreed to spend a minimum of $2 million on exploration on or before the second anniversary of the agreement, subject to receiving all necessary permits for a drilling program.
Aurion's investment in the joint venture will be transformed into a 2% Net Smelter Return (NSR) Royalty on the property if its share is decreased to 10% or below. For $2 million, Kinross can buy half of the royalty, reducing it to 1% of net smelter returns.
Shares of KGC have gained 33.7% over the past year compared with an 8.4% rise of its industry.
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Kinross is on track to meet its production target of 2.1 million gold equivalent ounces (+/- 5%) for 2023. Production is projected to stay strong through 2023. Its productions in 2024 and 2025 are predicted to remain stable at 2.1 million and 2 million attributable gold equivalent ounces (+/- 5%), respectively.
The company is also on pace to achieve its 2023 production cost of sales, all-in-sustaining cost and attributable capital expenditure targets.
Kinross Gold Corporation Price and Consensus
Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Denison Mine Corp. DNN and Veritiv Corporation VRTV.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 53.1% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines currently carries a Zacks Rank #1. The stock has gained roughly 10.9% in the past year. DNN beat the Zacks Consensus Estimate in three of the last four quarters while meeting once. It delivered a trailing four-quarter earnings surprise of 75%, on average.
Veritiv currently carries a Zacks Rank #2. The stock has rallied roughly 22.4% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.
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