UPDATE: BMO Capital Markets Downgrades Kinross Gold Corporation to Market Perform, Lowers PT Following Tasiast Expansion Removal

In a report published Monday, BMO Capital Markets analyst David Haughton downgraded the rating on

from Outperform to Market Perform, and lowered the price target from $8.50 to $6.00. In the report, BMO Capital Markets noted, “BMO Research has removed the re-development of Tasiast from Kinross production profile. At current gold prices, Tasiast is estimated to yield a 5% IRR, which appears inadequate for the potential US$2.9B investment. The current 8ktpd plant is assumed to continue at Tasiast after an outlay of US$650M in 2013 plus a further US$180M in 2014-2015 mostly for water. Kinross has made good strides to improve the costs at the existing assets and has beat consensus earnings for three successive quarters. However, BMO Research forecasts balance sheet pressure at prevailing metal prices in the absence of further cost reductions, capital conservation and possibly lower dividend.” Kinross Gold Corporation closed on Friday at $4.85.