I am assigning Kinross Gold Corporation (NYSE:KGC) a positive risk/reward rating based on its peer-leading growth profile, a deeply discounted valuation, a remarkably strong technical backdrop, and an incredibly asymmetric potential return spectrum.
Risk/Reward Rating: Positive
Kinross announced the acquisition of Great Bear Resources (OTCQX:GTBAF) for $1.4 billion on December 8, 2021, with an expected closing date towards the end of Q1 2022. Great Bear Resources has discovered what could become the largest Canadian gold mine opportunity since the Hemlo and Red Lake mining districts. The Hemlo and Red Lake mining districts have produced over 22 million ounces and 25 million ounces of gold respectively, and are two of the largest historical gold producers globally. This large-scale resource potential creates extraordinary upside leverage for Kinross shares in a gold bull market.
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