KGC Outperforms Its Peers—Can Its 2Q17 Results Support the Momentum?



KGC: Significant outperformance in 1H17

Kinross Gold (KGC) stock has risen 31% in the first half of 2017 compared to stock price losses experienced by its closest peers (GDX) (SGDM) Goldcorp (GG), Newmont Mining (NEM), and Barrick Gold (ABX)

Kinross Gold’s 1Q17 earnings beat helped its stock price. In addition, many analysts upgraded Kinross Gold in 2Q17, triggering a positive momentum among investors. Most of the analysts believe that the stock’s relative valuation could provide an opportunity, especially given the positive catalysts.

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Advancing projects

Kinross Gold (KGC) is expecting to double its production at the Bald Mountain mine in Nevada in 2017. Its Round Mountain project is also advancing according to plan. Its Phase W is on schedule with a continuing feasibility study. 

Kinross Gold is expecting to complete the feasibility study for the extension of the mine by 3Q17. This has the potential to extend the operational life of the mine. 

Tasiast Expansion update

Investors should anticipate an update on the Tasiast Expansion, which remains one of the most important projects for Kinross Gold (KGC). While Phase One of this project could increase mill throughput capacity from 8,000 tons to 12,000 tons per day, Phase Two has the potential to take the capacity to 30,000 tons per day. 

Phase One is ongoing, and Kinross Gold is expected to make the decision on Phase Two by the end of 2017.

Next, let’s look at Yamana Gold’s (AUY) key expectations for its 2Q17 results.


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