Gold Miner, Kinross Gold Corp. (KGC) announced the pricing of an offering of $1 billion in debt for general corporate purposes.
The offering includes $250 million principal amount of 3.625% senior notes due 2016, $500 million principal amount of 5.125% senior notes due 2021 and $250 million principal amount of 6.875% senior notes due 2041. The offering is expected to close on August 22, 2011.
As of June 30, 2011, Kinross had long-term debt of $465.6 million.
Recently, Kinross reported record adjusted net income of $226.5 million or $0.20 per share in the second quarter of 2011, above last year’s $111.4 million or $0.16 per share, outpacing the Zacks Consensus Estimate of $0.16.
GAAP net earnings were $247.4 million or $0.22 per share in the second quarter of 2011 compared with $110.4 million, or $0.16 per share in the prior-year quarter.
Quarterly revenues leaped 42% to $987.8 million, driven by strong performance in all operations, notably Kupol, Maricunga, and Fort Knox amid continuing strong gold prices.
In fiscal 2011, Kinross expects to make approximately $190 million in advance payments to suppliers compared with the previous guidance of $130 million, primarily as a result of accelerated purchases for the Tasiast expansion project.
Kinross Gold Corporation, like other gold producers, Barrick Gold Corporation (ABX) and Newmont Gold Mining (NEM), benefits from rising gold prices. We expect Kinross’ exploration projects and acquisitions to boost its top line going forward.
Currently, Kinross Gold has a short-term (1 to 3 months) Zacks #3 Rank (Hold) and a long-term Neutral recommendation.
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NEWMONT MINING (NEM): Free Stock Analysis Report
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