Kinross Gold Corp (NYSE:KGC)
CAPS Rating:
The Company is engaged in the mining and processing of gold and, as a by-product, silver ore and the exploration for, and the acquisition of, gold bearing properties in the Americas, Russia and worldwide.
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Picking KGC as a hedge against risk and fiat currency (Euro/USD). Factoring in another gold correction to $1450/oz Kinross should be worth $14.3-14.6 on a DCF basis, which represents a margin of safety of 34-36%. Assuming the index outperforms by 9-11% this year, I should generate a 25% ROI.