Kinross announces renewal of NCIB

Rhea-AI Summary

Kinross Gold (TSX: K, NYSE: KGC) has announced the renewal of its normal course issuer bid (NCIB) program, authorized by the Toronto Stock Exchange. The program allows Kinross to purchase up to 110,350,160 common shares, representing 10% of its public float, between March 24, 2025, and March 23, 2026.

The company can make daily repurchases of up to 853,989 shares on the TSX and 25% of average daily trading volume on the NYSE. Kinross believes the market price may not fully reflect share value and considers buybacks an attractive use of funds. The program, along with quarterly dividends, is supported by the company's investment-grade balance sheet and strong free cash flow generation.

All purchased shares will be cancelled. Under the previous NCIB approved in August 2023, which authorized repurchasing up to 108,440,227 shares, no common shares were repurchased.

Positive

• Authorization to repurchase up to 110,350,160 shares (10% of float) demonstrates confidence in company value
• Program supported by investment-grade balance sheet
• Strong free cash flow generation from global portfolio
• Commitment to shareholder returns through buybacks and quarterly dividends

Negative

• No shares were repurchased under previous NCIB program, indicating potential execution uncertainty
• Company not obligated to make any purchases under the new NCIB

Insights

Financial Analyst

Kinross Gold's renewal of its Normal Course Issuer Bid (NCIB) is a strategic capital allocation decision that authorizes the company to repurchase up to 110,350,160 common shares (representing 10% of its public float) over the next year. This program provides Kinross with significant flexibility to return capital to shareholders.

What's particularly notable is that despite having similar authorization under its previous NCIB program to repurchase up to 108,440,227 shares, Kinross didn't execute any repurchases during that period. This historical non-execution suggests the company may be selective about timing and price points for actual buybacks, using the authorization as a strategic option rather than a firm commitment.

The company's statement that "the market price of the common shares may not, from time to time, fully reflect their value" signals management's view that Kinross shares could be undervalued at certain price points. At the current share price of $12.20, a full execution would represent approximately $1.35 billion in potential share repurchases.

The automatic repurchase plan with designated brokers shows some level of structural commitment, allowing for purchases even during black-out periods. However, Kinross explicitly states it "will not be obligated to make any purchases," reinforcing the optional nature of the program.

This NCIB renewal, combined with Kinross's quarterly dividend, reflects a balanced shareholder return framework underpinned by what the company describes as an "investment grade balance sheet and strong free cash flow generation" from its global portfolio.

(All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

TORONTO, March 19, 2025 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (“Kinross” or the “Company”) (TSX: K, NYSE: KGC) is pleased to announce that the Toronto Stock Exchange (the “TSX”) has accepted the notice filed by the Company to renew its normal course issuer bid (“NCIB”) program.

Under the NCIB program, the Company is authorized to purchase up to 110,350,160 of its common shares (out of the 1,229,635,757 common shares outstanding as at February 28, 2025) representing up to 10% of the Company’s public float of 1,103,501,601 common shares, during the period starting on March 24, 2025 and ending on March 23, 2026.

The Company believes that the market price of the common shares may not, from time to time, fully reflect their value and accordingly the purchase of the common shares would be in the best interest of the Company and an attractive and appropriate use of available funds. Kinross is committed to enhancing shareholder returns through programs such as a share buyback and its quarterly dividend, which are underpinned by the Company’s investment grade balance sheet and strong free cash flow generation from its global portfolio.

Kinross may make purchases, from time to time, through the facilities of the TSX, the New York Stock Exchange (the “NYSE”) and/or alternative Canadian trading systems, if eligible, or by such other means as may be permitted by the TSX and/or NYSE or under applicable law. Daily repurchases on the TSX will be limited to a maximum of 853,989 common shares, representing 25% of the average daily trading volume for the six months ended February 28, 2025 (being 3,415,916 common shares), except where purchases are made in accordance with the “block purchase exception” of the TSX rules. Subject to certain exceptions for block purchases, the maximum number of common shares which can be purchased per day on the NYSE will be 25% of the average daily trading volume for the four calendar weeks preceding the date of purchase. All shares purchased by the Company under the NCIB program will be cancelled. Pursuant to the terms of the previous normal course issuer bid approved by the TSX on August 12, 2023, the Company was authorized to repurchase up to 108,440,227 of its common shares and repurchased no common shares.

Purchases will be made by the Company in accordance with the requirements of the TSX and/or the NYSE and the price which the Company will pay for any such common shares will be the market price of any such common shares at the time of acquisition, or such other price as may be permitted by the TSX and/or the NYSE.

In connection with the NCIB program, the Company has entered into an automatic repurchase plan with its designated broker to allow for purchases of its common shares during certain pre-determined black-out periods, based on Company instructions provided when not in black out, should the Company determine to proceed with purchases under the ASPP. Outside of these pre-determined black-out periods, any repurchases of common shares will be in accordance with management’s discretion, subject to applicable law. Although the Company has a present intention to acquire its common shares pursuant to the NCIB program, the Company will not be obligated to make any purchases under this NCIB.

About Kinross Gold Corporation

Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).

Media Contact
Victoria Barrington
Senior Director, Corporate Communications
phone: 289-455-1950
victoria.barrington@kinross.com

Investor Relations Contact
David Shaver                                
Senior Vice-President, Investor Relations & Communications                 
phone: 416-365-2761           
InvestorRelations@kinross.com                 

Cautionary statement on forward-looking information

All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements contained in this news release, include, but are not limited to, those relating to potential purchases under the Company’s NCIB. The words “anticipate”, “continue”, “estimates”, “expects”, “forecast”, “guidance”, “intends”, “outlook”, “progress”, “potential”, “prioritize”, or variations of or similar such words and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2024, and the Annual Information Form dated March 31, 2024. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the inaccuracy of any of the foregoing assumptions. Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross, including but not limited to resulting in an impairment charge on goodwill and/or assets. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by this cautionary statement and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the “Risk Analysis” section of our MD&A for the year ended December 31, 2024 and the Annual Information Form dated March 31, 2024. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Source: Kinross Gold Corporation

FAQ

How many shares can Kinross Gold (KGC) repurchase under the new NCIB program?

Kinross can repurchase up to 110,350,160 common shares, representing 10% of its public float, between March 24, 2025, and March 23, 2026.

What is the daily purchase limit for KGC shares under the NCIB program?

Daily purchases are to 853,989 shares on TSX (25% of average daily volume) and 25% of average daily trading volume on NYSE.

How many shares did Kinross (KGC) repurchase under its previous NCIB program?

Under the previous NCIB program approved in August 2023, Kinross did not repurchase any common shares.

What happens to KGC shares purchased under the NCIB program?

All shares purchased by Kinross under the NCIB program will be cancelled.

How long will Kinross Gold's (KGC) new share buyback program last?

The new NCIB program runs from March 24, 2025, to March 23, 2026.