Kinross fallout
Analysts are taking a dimmer view of shares of Kinross Gold Corp. (K-T10.540.151.44%) given its troubles in West Africa.
UBS Securities Canada analyst Brian MacArthur cut his 12-month price target on Kinross shares to $18 (U.S.) from $23, citing the higher costs and delayed plans announced by the miner yesterday. He rates the shares at "buy."
As The Globe and Mail's Sean Silcoff writes in today's Report on Business, Kinross was hammered in the markets yesterday after disclosing it will take six to nine months longer than expected to examine and plot its Tasiast project in Mauritania. It also will write down the mine's value.
"Of note, the study will include the assessment of various ore processing options for Tasiast’s expansion project to improve project economics," Mr. McArthur said.
"The recent infill drilling program at the West Branch has indentified a high-grade core that is surrounded by a lower-grade halo that may be better suited to a heap leach operation (the current plan calls for a 60,000 tonne-per-day process plant and related infrastructure). This review process is expected to result in a six- to nine-month delay and we note that production is likely going to be pushed out until 2016 as a result."
Thanks to Globe&Mail
