UPDATE: BMO Capital Markets Reiterates Outperform Rating, Lowers PT on Kinross Gold Corporation Following Strong Q1/13 Results

In a report published Wednesday, BMO Capital Markets analyst David Haughton reiterated an Outperform rating on Kinross Gold Corporation (NYSE: KGC), but lowered the price target from $10.50 to $8.50.In the report, Haughton noted, “Attributable gold equivalent sales of 645koz on production of 649koz at cash costs of US$729/oz were better than BMO Research's forecast of 602koz at US$759/oz. The strong operating results were mostly due to Fort Knox (94koz at US$558/oz vs. BMO Research at 65koz at US$647/oz) and Tasiast (63koz at US$880/oz vs. BMO Research at 41koz at US$934/oz). PFS results on the Tasiast expansion were released in late Apr'13. KGC is now proceeding with a feasibility study on a 38,000tpd mill expected for completion in Q1/14. In Russia, the expansion of Kupol's mill capacity to 4,500tpd, accommodating Dvoinoye start-up, is expected to be completed in Q3/13. Kinross reiterated 2013 guidance for 2.4–2.6Moz Au Eq at cash costs of US$740–790/oz. Capital expenditures guidance stands at US$1.6B, in line with BMO Research's expectations. BMO Research forecasts 2.6Moz Au Eq. at US$746/oz in 2013E.”Kinross Gold Corporation closed on Tuesday at $5.28.