- Write by:
-
Tuesday, October 20, 2020 - 5:47:13 PM
-
826 Visit
-
Print
Mining News Pro - Canadian miner Kinross Gold is said to be considering a sale of its gold mines in North and South America and moving its primary stock listing to London in a move to increase the company’s value.
The Toronto-based gold producer is also considering doubling down on its portfolio of assets in Russia and West Africa, The Globe and Mail reported, citing three unnamed sources familiar with the matter.
Kinross believes that selling its mines in the Americas and relocating its African and Russian business to London would make the remaining parts of the company more valuable than if all the assets were kept inside one business unit, The Globe and Mail reported.
The company, which will pay its first dividend in seven years this week, believes the time for the overhaul is “most favourable” as gold prices have surged to a record, according to the report.
Analysts agree that Kinross’ valuation has room for improvement. The stock’s current price of $9.17 (in pre-market trading) is still well below the close to $25 highs it hit back in 2008.
With a market capitalization of $11.46 billion, Kinross is also worth less than many of its peers, including Kirkland Lake Gold ($13.6 billion) and Agnico Eagle Mines ($19.5 billion).
Kinross, one of the world’s top-10 gold producers, has four mines in the Americas. In the US, it owns Round Mountain and Bald Mountain, both in Nevada, as well as Fort Knox, in Alaska. It also operates Paracatu, in Brazil, which is the South American country’s No.1 gold mine.
The sale of those assets could bring billions into the company’s coffers and it’s likely to attract interest from top miners.
The company recently announced it planned to boost output to 2.9 million gold equivalent ounces over the next three years.
It said it expected to achieve such goal partly by extending the life of mines and executing on projects already under its previous three-year capital expenditure plan. The company is using $1,200 an ounce as a gold-price assumption for its mine plans.
Kinross will release financial and operating results for the third quarter of 2020 on Nov. 4th, after market close.
Company officials were not immediately available to comment on the report.
Short Link:
https://www.miningnews.ir/En/News/606385
China’s Zhaojin Mining Industry said on Wednesday that its A$733 million ($477.8 million) offer to buy Australia’s ...
Toronto-listed miner OceanaGold Corp said on Wednesday it will raise 6.08 billion pesos ($106 million) through an ...
Gold’s record-setting rally this year has puzzled market watchers as bullion has roared higher despite headwinds that ...
AbraSilver Resource said on Monday it has received investments from both Kinross Gold and Central Puerto, Argentina’s ...
Gold took a tumble as haven demand waned after geopolitical tensions eased in the Middle East.
The four largest indigenous communities in Chile’s Atacama salt flat suspended dialogue with state-run copper giant ...
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Representatives from the Peñas Negras Indigenous community, in northwestern Argentina, clashed with heavily armed police ...
Newmont confirmed on Wednesday that two members of its workforce died this week at the Cerro Negro mine located in the ...
No comments have been posted yet ...