Kinross commits to $300m share buyback this year

Precious metals producer Kinross Gold has launched a new, enhanced share buyback programme, allocating $300-million to buybacks over the remainder of the year. In 2023 and 2024, Kinross would allocate 75% of its excess cash to share buybacks, the company announced on Monday.

This announcement follows discussions with Elliott Investment Management and several of the company’s other shareholders.

“Our board of directors and management team believe that this enhanced buyback programme is affordable, enables us to sustain our dividend and is a responsible allocation of capital that does not compromise our balance sheet or our ability to fund our business and advance our impressive pipeline of growth projects.

“Elliott is an experienced mining sector investor and its support for Kinross and this programme further validates our view that Kinross shares offer the market a compelling investment opportunity,” said CEO Paul Rollinson.

Kinross will temporarily pause buybacks in case of a ratings downgrade, major operational disruptions or a significant drop in gold price.

“We have appreciated our constructive dialogue with the Kinross management team, and we believe the enhanced buyback programme announced today demonstrates their commitment to shareholders and to unlocking shareholder value. Kinross today possesses a high-quality, Americas-focused portfolio with strong potential for future growth through Great Bear, yet it trades at a significant discount to both its peers and to the value of its assets.

“We believe that with this new capital-allocation framework, Kinross is taking a major step toward closing that gap and realising the upside potential in its stock,” commented portfolio manager Mark Cicirelli.