KGC: Significant outperformance
Kinross Gold (KGC) stock has risen 42.4% year-to-date (or YTD) until October 13, 2017. The gain recorded by the VanEck Vectors Gold Miners ETF (GDX) is 14.0% in comparison. In 3Q17, the stock has almost equaled the performance of GDX by rising 4.2%.
Kinross depicted solid operational performance by reporting a 2Q17 earnings beat following a 1Q17 earnings beat. Also, many analysts upgraded Kinross Gold in 2Q17, triggering positive momentum among investors.
These projects would entail a combined cost of ~$1.0 billion. These are extremely important projects for the company in terms of production growth as well as cost reduction.
While Tasiast Phase Two would increase the mill capacity to 30,000 tons per day (or tpd) from the current 12,000 tpd, Round Mountain Phase W is expected to extend the mine life by five years and increase the life-of-mine production by 1.5 million ounces.
Kinross Gold (KGC) has made it clear that it would be able to fund the projects through its strong balance sheet, existing liquidity, and operating cash flows. The management also noted during the September 18, 2017, conference call that the company would be able to go through the funding of both of projects regardless of gold prices.
Next, let’s look at Yamana Gold’s (AUY) key expectations for its 3Q17 results.