Markets
AU

Kinross Gold (KGC) Closes $250M Bought Deal Financing

An image of rising and declining prices
Credit: Shutterstock photo

Kinross Gold CorporationKGC declared that it has closed its earlier announced bought deal public offering of 83,400,000 common shares of the company at a price of $3.00 per common share for gross proceeds of roughly $250 million. The shares were sold on a bought-deal basis through a syndicate of underwriters.

Kinross has granted the underwriters an option to purchase up to an additional 15% of the offering to cover over-allotments, if any. This option can be exercised at the offering price for a period of 30 days following the closing of the offering.

Kinross plans to utilize the net proceeds of the offering to bolster its balance sheet and improve its long-term liquidity position. About $175 million of the proceeds will be used to repay the credit facilities that were used by the company to purchase assets from Barrick Gold Corp. ABX . The remaining proceeds will be utilized to repay debt maturing in 2016 and for general corporate purposes.

Kinross reported a net loss of $841.9 million (or 73 cents per share) in the fourth quarter of 2015, narrower than a net loss of $1,473.5 million (or $1.29 per share) in the year-ago quarter. The reported net loss includes a non-cash, after-tax impairment charge of $430.2 million and $235 million of write-down of inventory and other assets.

Adjusted loss (excluding one-time items) was 6 cents per share compared with an adjusted loss of a penny incurred in the year-ago quarter. The loss was also wider than the Zacks Consensus Estimate of a loss of 5 cents.

Kinross currently carries a Zacks Rank #3 (Hold).

Some better-ranked mining companies include AngloGold Ashanti Ltd. AU and Golden Star Resources, Ltd. GSS , both with a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KINROSS GOLD (KGC): Free Stock Analysis Report

BARRICK GOLD CP (ABX): Free Stock Analysis Report

ANGLOGOLD LTD (AU): Free Stock Analysis Report

GOLDEN STAR RES (GSS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AU KGC GSS

Other Topics

Stocks

Latest Markets Videos