Kinross Gold Corporation KGC has completed its previously announced offering of debt securities comprising $500 million principal amount of its 4.50% Senior Notes due 2027. The company plans to use the net proceeds, along with available cash in hand, to repay term loans, due Aug 2020.
The notes are senior, unsecured liability of Kinross. The company announced that the notes are unconditionally guaranteed by some of its fully owned subsidiaries that are also guarantors under its unsecured senior credit agreement.
The offering has been made to qualified institutional buyers outside the U.S., under Rule 144A of the United States Securities Act of 1933. The notes have also been exempted from registration requirements under the Act.
In the first quarter, long-term debt of the company increased 0.04% year over year to $1,733.8 million. Cash and cash equivalents were $819 million as of Mar 31, 2017, up from the prior-year recorded figure of $750.4 million.
Kinross’ shares have gained around 3.2% over the past three months against the Zacks categorized Mining-Gold industry’s 13% decline.
Kinross expects gold production in the range of 2.5–2.7 million gold equivalent ounces for 2017. The overall production cost of sales is expected in the range of $660–$720 per gold equivalent ounce, while all-in sustaining cost is estimated at $925–$1,025.
Kinross is making steady progress in advancing the projects that will provide it with a strong growth profile among leading gold producers. The company also remains focused on managing costs and improving cash flows. However, it remains exposed to a sluggish global economy and volatile gold prices.
Kinross Gold Corporation Price and Consensus
Kinross Gold Corporation Price and Consensus | Kinross Gold Corporation Quote
Kinross currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the basic materials space are The Sherwin-Williams Company SHW, POSCO PKX and Quaker Chemical Corporation KWR. All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Sherwin-Williams has expected long-term earnings growth rate of 11.4%.
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