Shares of Kinross surged as much as 8.3% in Toronto, the biggest intraday jump since mid January. The stock was up 6.5% to C$4.62 at 10:10 a.m.
“Management met with Elliott a number of times to discuss its views on capital allocation and value creation,” Chief Executive J. Paul Rollinson said in the statement. “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.”
The announcement comes as the world’s gold producers converge this week at the Denver Gold Forum in Colorado, the largest conference for the industry. Elliott said in the statement that Kinross trades at a “significant” discount to its peers and to the value of its assets. Elliott said the new buyback plan will help close that gap.
(By Joe Deaux)
