UPDATE: Morgan Stanley Reiterates Equal-Weight on Kinross Gold Due to Uncertainty on Expansion Plans

In a report published Monday, Morgan Stanley analyst Paretosh Misra reiterated equal-weight on Kinross Gold Corp KCG. The price target remains at $5.25. Misra sees 3 possible forces that could lead to outperformance: 1) Postive FCF given by 2014 cost control, 2) better reserves because of lower gold price last year and potential Tasiast drilling, and 3) conservative assumptions in the Tasiast drilling decision. In the report, Morgan Stanley noted, "Management's most recent guidance of ~$2.6 bn capex for mill expansion is based on a pre-feasibility study. A decision on expansion isn't expected before 2015, but concerns that the project might be approved on overly optimistic price & cost assumptions could keep investor interest guarded." On Friday, Kinross closed at $4.82.
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Posted In: Analyst ColorReiterationAnalyst RatingsKinrossMorgan StanleyParetosh Misra
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