Kinross Gold Corporation (KGC) announced that it has extended its offer to exchange up to $500 million principal amount of its 5.95% senior notes, due 2024, to Jan 23, 2015. The Notes (the "New Notes"), which are registered under the Securities Act of 1933, will be exchanged for all of the company’s outstanding unregistered 5.95% senior notes due 2024 (the "Old Notes").
The offer, previously set to expire on Jan 19, 2015, will now expire on Jan 23, 2015. The exchange offers are being made upon the terms and are subject to the conditions laid down in a prospectus dated Dec 16, 2014. The Exchange Agent for the offer is Wells Fargo Bank, N.A.
Kinross released its third-quarter 2014 results in November. The company posted adjusted earnings of $70.1 million or 6 cents per share in the quarter, up nearly 29% from adjusted earnings of $54.4 million or 5 cents per share in the year-ago quarter, aided by an increase in gold sales. Earnings per share surpassed the Zacks Consensus Estimate of 3 cents.
On a reported basis, Kinross posted net loss of $4.3 million, or a breakeven in the quarter, compared with net earnings of $46.9 million, or 4 cents per share posted in the prior-year quarter. Net loss in the third quarter of 2014 resulted from higher delayed non-cash income tax expense in Chile, partly offset by higher revenues.
Revenues increased roughly 8% year over year to $945.7 million in the reported quarter due to higher gold equivalent ounces sold from Russia. Sales came ahead of the Zacks Consensus Estimate of $840 million.
Kinross currently carries a Zacks Rank #3 (Hold).
Other companies in the gold mining space worth considering include Golden Star Resources, Ltd. (GSS), Pretium Resources Inc. (PVG) and Rubicon Minerals Corporation (RBY). All of these stocks hold a Zacks Rank #2 (Buy).
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