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Kinross Prices Senior Notes Offering Worth $500 Million

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Kinross Gold Corporation (KGC - Free Report) said that it has priced an offering of debt securities comprising $500 million principal amount of its 4.50% senior notes, due 2027.

The notes will be unsecured and will be offered to qualified institutional buyers outside the U.S., under Rule 144A, and will be exempted from registration requirements under the United States Securities Act of 1933.

Kinross announced that the notes will be unconditionally guaranteed by some of the fully owned subsidiaries of Kinross that are also guarantors under its unsecured senior credit agreement.

The company plans to use the net proceeds, along with available cash in hand, to repay term loans due in Aug 2020.

In the first quarter, long-term debt of the company inched up 0.04% year over year to $1,733.8 million, while 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 rallied around 18.5% over the past three months against the Zacks categorized Mining-Gold industry’s 3.3% 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 to be $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 currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked companies in the basic materials space include The Sherwin-Williams Company (SHW - Free Report) , Iamgold Corporation (IAG - Free Report) and The Chemours Company (CC - Free Report) . All the 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%.

Iamgold has expected long-term earnings growth rate of 3%.

Chemours has expected long-term earnings growth rate of 15.5%.

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