Canadian miner Kinross Gold Corp. (KGC) has announced that it is proceeding with the construction of three new projects in the U.S. that will cost a total of $1.4 billion.
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The Toronto-based gold miner said it made the decision to proceed with the U.S. projects as the price of bullion continues to scale new heights. Gold is currently trading at $4,620 an ounce, near an all-time high after rising more than 60% in the past 12 months.
Kinross’s new gold projects in America include the Round Mountain Phase X project in Nevada that’s expected to cost $400 million over four years, as well as the Bald Mountain Redbird 2 project, also located in Nevada, that’s likely to cost $490 million over three years. A third project at the Kettle River-Curlew mine site in Washington State is forecast to cost $485 million over the next three years.
Making Hay While the Sun Shines
Management at Kinross say they are keen to bring new projects online with gold’s price trending higher. The company also wants to extend the life of its gold mines and ensure continued and stable production in the years to come.
In a news release, Kinross CEO Paul Rollinson said the new U.S. projects will add three million ounces of gold to the company’s portfolio. All three of the projects will be funded from operating cash flows, he added. Many brokerages and banks on Wall Street are forecasting that gold’s price will top $5,000 an ounce this year.
Is KGC Stock a Buy?
Kinross stock has a consensus Moderate Buy rating among nine Wall Street analysts. That rating is based on six Buy and three Hold recommendations issued in the last three months. The average KGC price target of $31.53 implies 5.66% downside from current levels.
