2 Mining Companies With Analyst Upgrades During October 2012

Oct. 09, 2012 8:08 AM ETKGC, PAAS4 Comments
Markus Aarnio profile picture
Markus Aarnio

Gold prices are up 10% and silver prices are up 25% since the beginning of August 2012. Based on this observation I screened for mining companies to see if there were any analyst upgrades this month. I focused my search on gold and silver miners. I only found one gold and one silver mining company with analyst upgrades this month. Here is a look at the two companies:

1. Kinross (KGC) is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ecuador, Ghana, Mauritania, Russia and the United States, employing approximately 8,000 people worldwide.

Analyst upgrades

RBC Capital upgraded Kinross Gold from Sector Perform to Outperform on October 2. RBC Capital raised the target price from $11 to $14.


The company reported the second-quarter financial results on August 8 with the following highlights:

Revenue $1.0 billion
Net income $153.6 million
Cash $1.3 billion
Gold production 632,772 gold equivalent ounces
Production cost of sales $725 per gold equivalent ounce


Due to the divestiture of Kinross' 50% interest in Crixás on June 28, 2012 for $220 million, the company's share of Crixás' full-year forecast, including production of approximately 70,000 gold equivalent ounces, has been removed from the consolidated 2012 production forecast. As a result, Kinross now expects to produce approximately 2.5-2.6 million gold equivalent ounces in 2012 from its continuing operations, compared with its previous 2012 production forecast of 2.6-2.8 million gold equivalent ounces. The company remains on track to be within its full-year 2012 production forecast range, excluding the adjustment in guidance due to the divestiture of its interest in Crixás.

Tye Burt, President and Chief Executive Officer of Kinross commented on May 29:

Crixás is a non-operated, non-core asset for Kinross. Its divestiture is consistent with our strategy of portfolio optimization, and focusing

This article was written by

Markus Aarnio profile picture
I have 20 years of investing experience. I have traded stocks, commodities, and forex markets.

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