4 Mar 2016capital raising announcement● Neutral
Closed the 83.4 million share bought deal at US$3.00 for about US$250 million, with roughly US$175 million repaying the facility drawn for the Barrick Nevada purchase.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
25 Feb 2016capital raising announcement▼ BadMajor
Announced a bought deal of 83.4 million shares at US$3.00 for about US$250 million, with roughly US$175 million going to repay the credit facility drawn to buy the Nevada mines from Barrick six weeks earlier. Equity issued to term out an acquisition, at a share price near the bottom of the cycle.
25 Feb 2016capital raising announcement● Neutral
A second filing of the same 24 February 2016 bought-deal announcement already furnished under accession 0001571049-16-012078; the text is identical.
11 Jan 2016business combination▲ GoodMajor
Closed the US$610 million Barrick purchase of Bald Mountain and the remaining half of Round Mountain, funded initially by drawing the credit facility.
24 Nov 2015asset acquisition disposition● Neutral
The signed asset purchase agreement behind the Barrick deal, naming Barrick Gold U.S., Bargold and Homestake Nevada as sellers with Barrick Gold Corporation guaranteeing their obligations, and Kinross subsidiaries as buyers of Bald Mountain and half of Round Mountain.
12 Nov 2015business combination▲ GoodMajor
Agreed to buy 100% of Bald Mountain and the other half of Round Mountain from Barrick for US$610 million cash, adding about 430,000 gold-equivalent ounces a year over three years and lifting US production 56%. The Bald Mountain purchase includes a 600 square kilometre land package, 40% of which will be explored in a 50/50 joint venture with Barrick.
18 Sept 2015production update▲ Good
Cut 2015 all-in sustaining cost guidance to US$975-1,025 an ounce from US$1,000-1,100, cost of sales to US$690-730 from US$720-780, and capital spending to US$650 million from US$725 million, while narrowing production guidance upward to 2.5-2.6 million gold-equivalent ounces. Costs beating plan in a weak gold year.
2 Apr 2015production update▼ Bad
An extreme rainstorm in Chile's Atacama region cut road and power access to the Maricunga mine, suspending mining, crushing and the SART plant, though the leach recovery plant kept running on generators. Kinross said site facilities were undamaged and regional production guidance was unchanged.
31 Mar 2015resource reserve update● Neutral
Filed technical reports for Fort Knox in Alaska and the Kupol-Dvoinoye complex in Russia, backing reserve and resource estimates already published in February 2015. Routine annual documentation filed with the 2014 annual report.
20 Jan 2015debt financing● Neutral
Extended by four days the deadline for holders of the unregistered 5.95% 2024 notes to swap into registered notes; US$497.9 million of the US$500 million had already been tendered. Purely an administrative registration exercise, not a change in debt.
18 Dec 2014asset acquisition disposition● NeutralMajor
Completed the Fruta del Norte sale for US$240 million, taken as US$150 million cash and US$90 million in Fortress stock at C$4.00 a share, leaving Kinross with about 25.8% of Fortress. Kinross agreed to hold the shares for six to twelve months.
22 Oct 2014asset acquisition disposition● NeutralMajor
Agreed to sell Aurelian Resources and the abandoned Fruta del Norte project in Ecuador to Fortress Minerals, a Lundin group company, for US$240 million in cash and Fortress shares. This closes out the project Kinross walked away from in June 2013.
1 Apr 2014resource reserve update▲ GoodMajor
The Tasiast expansion feasibility study cut expected initial capital from the pre-feasibility US$2.7 billion to about US$1.6 billion and lifted reserves by 3.1 million ounces to 9.6 million, for average output of 848,000 ounces a year over five years at US$501 cash cost and a 17% return. Kinross did not commit to build it at this point.
31 Mar 2014resource reserve update● Neutral
Filed the supporting technical reports for Tasiast and Paracatu. The Tasiast report is the formal backing for the 38,000 tonne-per-day expansion case announced the same week; the Paracatu report covers the existing operation at its December 2013 reserve estimate.
25 Mar 2014resource reserve update● Neutral
A scheduling notice for the Tasiast expansion feasibility study results, due 31 March 2014.
28 Feb 2014debt financing● Neutral
Priced US$500 million of 5.95% senior unsecured notes due 2024, with proceeds earmarked to pay down part of the term loan due August 2017. A refinancing rather than new money.
10 Oct 2013production update▲ GoodMajor
Dvoinoye, a high-grade underground mine 100km from Kupol, reached commercial production on schedule and on budget, feeding the expanded Kupol mill. Guided to add 235,000-300,000 gold-equivalent ounces a year in its first three full years at a Russian regional cost of sales of US$545-600 an ounce.
11 June 2013debt financing▼ BadMajor
Two announcements in one filing. The larger one abandons the Fruta del Norte project in Ecuador after two years of failed negotiation with the government, ending the asset Kinross bought with Aurelian Resources; the second extends the US$1.5 billion revolver to August 2018 and the US$1.0 billion term loan to August 2017, leaving no debt maturing before 2016.
30 Apr 2013resource reserve update● NeutralMajor
The Tasiast expansion pre-feasibility put a 30,000 tonne-per-day mill at roughly 830,000 ounces a year for five years, cash costs near US$500 an ounce and all-in sustaining costs near US$735, but at a capital cost of about US$2.7 billion for an 11% return. Kinross opted to study a larger 38,000 tonne-per-day mill instead.
23 Apr 2013resource reserve update● Neutral
A scheduling notice: results of the long-awaited Tasiast expansion pre-feasibility study would be published on 29 April 2013. No figures were given.
14 Mar 2013debt financing● Neutral
Holders put US$454.6 million of the 1.75% 2028 convertible notes back for cash, and Kinross said it would compulsorily redeem whatever stub remained at par around 30 April. Effectively the whole 2028 convertible issue was retired for cash.
8 Feb 2013debt financing● Neutral
Formally notified holders of its 1.75% convertible notes due 2028 that they could put the notes back to the company at par on 15 March 2013, a right written into the 2008 indenture rather than anything new.
29 May 2012asset acquisition disposition● Neutral
Agreed to sell its non-operated 50% of the Crixas gold mine in Brazil to partner and operator AngloGold Ashanti for US$220 million cash. Kinross's half held about 375,000 ounces of reserves and was forecast to contribute roughly 70,000 gold-equivalent ounces in 2012.
2 Apr 2012resource reserve update● Neutral
The full Tasiast technical report itself, effective 30 March 2012, filed alongside the 2011 annual report. It documents the mine as it then stood, six weeks after Kinross wrote US$2,490.1 million of Tasiast goodwill off its balance sheet.
2 Apr 2012resource reserve update● Neutral
Filed the National Instrument 43-101 technical report backing the Tasiast reserve and resource figures already published in February 2012. It covers only the existing 8,000 tonne-per-day operation and deliberately excludes every expansion scenario then under study.
28 Feb 2012other material event▼ BadMajor
The material change report behind the 2011 year-end results: a non-cash goodwill impairment of US$2,937.6 million on the Tasiast and Chirano assets bought from Red Back Mining in September 2010, of which US$2,490.1 million was Tasiast and US$447.5 million Chirano. Kinross blamed industry-wide cost inflation, lower sector valuations and its own improving understanding of the Tasiast mine plan, and cut back capital, deferring Fruta del Norte and Lobo-Marte.
17 Jan 2012production update▼ BadMajor
Preliminary 2011 production of about 2.6 million gold-equivalent ounces at roughly US$600 cost of sales per ounce, both within guidance, with 2012 guided at 2.6-2.8 million ounces but at a higher US$670-715. Alongside it Kinross opened a capital and project optimisation review, the first public signal that the Tasiast expansion plan was being cut back.
22 Dec 2011debt financing● Neutral
A US$200 million five-year non-recourse loan at LIBOR plus 2.5% was drawn down to pay for lifting Kinross to full ownership of the Kupol mine in Russia, completed the previous April. Lenders were Export Development Canada, BNP Paribas, HSBC, ING and Societe Generale.
23 Aug 2011debt financing● Neutral
Closed the US$1 billion three-tranche senior note issue priced a week earlier.
16 Aug 2011debt financing● NeutralMajor
Priced US$1 billion of senior unsecured notes in three tranches: US$250 million of 3.625% due 2016, US$500 million of 5.125% due 2021 and US$250 million of 6.875% due 2041, for general corporate purposes and capital spending. Kinross was funding the Tasiast build-out at the top of the gold cycle.