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Kinross announces enhanced share buyback program, commits $300 million over remainder of 2022

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(Kitco News) - On Monday, Kinross Gold (TSX: K, NYSE: KGC) announced that it is launching a new, enhanced share buyback program.

Kinross said that its Board and management believe the company's shares offer the best return available on shareholders' capital and therefore have decided to allocate a more substantial portion of cash available to share buybacks to enhance per-share metrics and improve shareholder returns.

According to the company's statement, under the new program Kinross will buy back $300 million in shares over the remainder of 2022; and in 2023 and 2024, the company will allocate 75% of its excess cash (defined as free cash flow after paying interest and dividends) to share buybacks.

Kinross added that its approach to the enhanced buyback program will ensure the buyback is affordable and sustainable, protecting Kinross' strong balance sheet and capacity to continue investing in its business.

"The strength of Kinross' business coupled with its investment grade balance sheet allow it to allocate additional funds to share buybacks while also reinvesting in its business and maintaining a strong credit profile. The company is maintaining its quarterly dividend," Kinross noted in its press-release.

Importantly, the company said that this announcement follows constructive discussions with Elliott Investment Management as well as a number of the company's other shareholders, adding that Elliott is supportive of the enhanced buyback program, which is designed to achieve a shared objective of unlocking value for shareholders.

President and CEO J. Paul Rollinson commented, "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 global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada.

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