Kinross (KGC) to Redeem $500 Million in Senior Notes in August
Kinross Gold Corporation KGC has announced that on Aug 10, 2023, it will redeem all of the outstanding 5.95% Senior Notes due Mar 15, 2024, with an aggregate principal amount of $500 million.
The Notes will be redeemed at a redemption price established by the provisions of the Notes, which will include accrued and unpaid interest up to, but not including, the Redemption Date. The Notes' interest will cease to accrue on and after the Redemption Date.
Kinross will have $1,250 million in total principal amount of Senior Notes outstanding when the Notes are redeemed, with the next Senior Notes maturing on Jul 15, 2027 for $500 million in total principal amount.
In the first quarter of 2023, the company's adjusted operating cash flow was $358.2 million, up 43.8% year over year. Cash and cash equivalents totaled $471 million as of Mar 31, 2023, up from $418.1 million on Dec 31, 2022. Long-term debt was $2,158.9 million at the end of the first quarter, a 15.6% fall from $2,556.9 million as of Dec 31, 2022. Kinross' substantial liquidity (of around $1.7 billion) should allow it to cover its short-term debt obligations.
Shares of KGC have gained 51.3% over the past year compared with a 22.5% rise of its industry.
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For 2023, Kinross expects to produce 2.1 million (+/- 5%) gold equivalent ounces. Production is forecast to increase following the first quarter, primarily driven by expected higher production at Tasiast and La Coipa. KGC’s annual production is expected to remain stable in 2024 and 2025 at 2.1 million and 2 million gold equivalent ounces (+/- 5%), respectively.
Kinross Gold Corporation Price and Consensus
Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote
Zacks Rank & Key Picks
Kinross currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Carpenter Technology Corporation CRS, Silvercorp Metals Inc. SVM and PPG Industries, Inc. PPG.
CRS currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for current-year earnings for CRS is currently pegged at $1.04, implying year-over-year growth of 6.3%. It has a trailing four-quarter earnings surprise of roughly 198.1%, on average. The stock has gained around 108.3% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Silvercorp Metals currently flaunts a Zacks Rank #1. The consensus estimate for current fiscal-year earnings for Silvercorp Metals is currently pegged at 27 cents, suggesting year-over-year growth of 28.6%. The stock has jumped roughly 29.3% in the past year.
PPG Industries currently sports a Zacks Rank #1. The Zacks Consensus Estimate for PPG's current-year earnings has been revised 0.7% upward over the past 60 days. PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG shares have gained around 32% in a year.
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