Kinross Gold Retains a Hold

Headquartered in Ontario, Canada, Kinross Gold Corporation (KGC - Analyst Report) is primarily involved in the exploration and operation of gold mines. Kinross currently ranks among the top 10 gold mining companies in the world, with a targeted production of 2 million ounces of gold annually.

Higher gold prices bode well for Kinross' top-line growth. The various exploration and expansion activities undertaken will enhance production levels. KGC has received approval for a huge investment in the Paracatu mine expansion, which is expected to start production at the end of 2008-third quarter.

The acquisition of Bema Gold will bring in various synergies. However, declining production levels at some of the existing operations and higher mining, energy, and administrative overhead costs are likely to constrain margin expansion. Consequently, we reiterate our Hold recommendation on shares of KGC, with a six-month target price of $15.00.

Read the full analyst report on KGC