Canaccord Says Buy Kinross On Pullback

In a note Thursday morning, Canaccord's Canadian equity research team upgraded shares of Kinross Gold Corporation KGC citing a recent pullback in the stock as an opportunity.

Despite a 23 percent fall in recent weeks due to strikes at Tasiast and year-long strong performance, Canaccord still sees a 35 percent return with a price target of $7.75 Canadian dollars.

Canaccord believes the Street has finally re-rated shares of Kinross to peers due to:

• Reliable operating performance
• Currency tailwinds
• Delayed weak oil price impact
• Tasiast's improved long-term outlook as FCF generator
• Delayed and moderated production cliff of two years

In terms of further catalysts for the stock, Canaccord says these are three factors to watch for:

1. Site visit to Bald Mountain at the end of June.
2. Vantage pit receipt permit at Bald Mountain, expected mid-2016 with immediate reserve conversion of approximately 0.6Moz
3. Potential early shutdown of Maricunga

Shares of Kinross closed on the day at $4.51, up 2.27 percent.