Kinross Gold preparing the sale of its American operations
The mining giant is also planning to move its primary listing to the London Stock Exchange.
Canadian mining company Kinross Gold (TSX: K) (NYSE: KGC) is reportedly considering selling its gold mines in the Americas and is moving its primary stock listing to London to add value to the company. The Toronto-based gold producer is also considering doubling its portfolio of assets in Russia and West Africa, The Globe and Mail reported, citing three unnamed sources familiar with the matter.
Kinross believes that selling its mines in the Americas and relocating its Africa and Russia operations to London would make the remaining parts of the company more valuable than leaving all of its assets within one division, The Globe and Mail reported. The company, which will pay its first dividend in seven years this week, believes the timing for the overhaul is "best" as the price of gold rose to a record high, the report said.
The analysts agree that Kinross' rating could be improved. The current price of the stock is $ 9.17 (in pre-market trading), still well below the nearly $ 25 highs it reached in 2008. With a market cap of $ 11.46 billion, Kinross is also worth less than many of its competitors, including Kirkland Lake Gold (TSE, NYSE: KL) ($ 13.6 billion) and Agnico Eagle Mines (TSE, NYSE: AEM) (Jan. , $ 5 billion). Kinross, one of the 10 largest gold producers in the world, has four mines on the American continent. In the US, he owns Round Mountain and Bald Mountain, both in Nevada, and Fort Knox, Alaska.
It also operates Paracatu in Brazil, the No. 1 gold mine in the South American country. Selling these assets could raise billions in the company's coffers and is likely to pique the interest of top miners. The company recently announced that it plans to increase production to 2.9 million ounces of gold equivalent over the next three years. It said it expects to achieve this goal in part by extending the life of the mines and executing projects already underway as part of its previous three-year investment plan. The company is anticipating a Gold Price of $ 1,200 an ounce in its mining plans. Kinross will publish its financial and operating results for the third quarter of 2020 on November 4th after the market closes.