7 Cheap Canadian Stocks To Invest In

5. Kinross Gold (NYSE:KGC)  

Upside Potential: 8.59%  

Forward P/E Ratio as of September 28: 15.96 

Number of Hedge Fund Investors: 37

Kinross Gold (NYSE:KGC) is a global gold mining company with operations in the Americas, West Africa, and Russia. The company focuses on high-quality development projects and has several projects on the horizon, including the Great Bear project in Ontario, the Manh Choh project in Alaska, and the Lobo-Marte project in Chile.

On September 10, Kinross Gold (NYSE:KGC) released the Preliminary Economic Assessment (PEA) for its Great Bear Project in Ontario, Canada. The study envisions an open-pit and underground operation that will produce 430,000 ounces per annum on average, with production of 518,000 ounces per annum in its first eight years. The project is expected to have a very modest throughput and overall footprint of 10,000 tonnes per day, with industry-leading open-pit grades of 3.0 g/t of gold. The company has also reported an impressive intercept of 32.4 meters at 29.6 g/t of gold at Round Mountain, making it a top-12 intercept drilled in Nevada over the past four years on a gram-meter basis.

In Q2, Kinross Gold (NYSE:KGC) reported a 4% decline in production to 535,300 gold-equivalent ounces (GEOs). The company’s lower production was related to a sharp decline in output at Tasiast, Paracatu, and La Coipa. However, the company’s U.S. operations, including Fort Knox and Round Mountain, reported higher production. Despite the decline in production, the company’s revenue increased by 10% year-over-year to $1.43 billion, driven by higher gold prices. The company’s all-in-sustaining costs (AISC) increased by 7% to $1,387 per ounce, but the higher gold price offset the increase in costs, resulting in a 40% increase in AISC margins to $955 per ounce.

Moreover, Kinross Gold (NYSE:KGC) has been focused on optimizing production and cost controls, which has helped offset volatile gold prices. Kinross Gold (NYSE:KGC)  is trading at a forward PE of 15.96, a 4.12% discount to its sector median of 16.65. Analysts expect the company to increase its earnings by 32.38% this year and have a consensus on the stock’s Buy rating, setting an average share price target at $10.68, which represents an 8.59% upside potential from its current level.