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Analyst Actons: Kinross Gold Upgraded at National Bank

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Despite bullion gaining almost US$300 an ounce since June, Kinross Gold Corp. (K.TO) shares have been largely treading water, as the Street is concerned with the increased capital costs Kinross faces as it prepares to advance several projects to the production phase over the next few years and make good on several recent big-ticket acquisitions, the Globe and Mail reported.

National Bank Financial analyst Paolo Lostritto, however, reportedly believes that higher future capital expenditures will be worth it - and suggests shareholders will eventually reap the benefit.

Mr. Lostritto was cited as saying in a research note today that "Despite an increased capital cost intensity over the next two to three years, we believe the production growth and cash flow per share growth justify the investment."

National Bank upgraded the stock to "outperform" from "sector perform" and raised the price target by $3 to $20.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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