- Kinross Gold Corporation (K) is launching an enhanced share buyback program
- Kinross will buy back $300 million in shares over the remainder of 2022
- In 2023 and 2024, Kinross will allocate 75 per cent of its excess cash to share buybacks
- Kinross is a Canadian-based gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile, Ghana and Canada
- Kinross Gold Corporation (K) opened trading at C$4.34.
Kinross Gold Corporation (K) is introducing an enhanced share buyback program
Kinross will buy back $300 million in shares over the remainder of 2022.
In 2023 and 2024, the company will allocate 75 per cent of its excess cash (defined as free cash flow after paying interest and dividends) to share buybacks.
This announcement follows discussions with Elliott Investment Management LP as well as a number of the company’s other shareholders.
The company believes Kinross’ shares offer the best return available on shareholders’ capital and therefore has decided to allocate a more substantial portion of cash available to share buybacks to enhance per-share metrics and improve shareholder returns.
J. Paul Rollinson, President and CEO, commented on the program.
“Management met with Elliott a number of times to discuss its views on capital allocation and value creation. We share a common view that our shares offer a highly compelling investment opportunity and, as a result, believe that a more substantial share buyback program is a highly attractive use of excess cash. Our Board of Directors and management team believe that this enhanced buyback program 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 program further validates our view that Kinross shares offer the market a compelling investment opportunity.”
Kinross is a Canadian-based gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile, Ghana and Canada.
Kinross Gold Corporation (K) opened trading at C$4.34.