Kinross Gold Corporation KGC has signed a deal to acquire 15,410,000 common shares of Relevant Gold Corp. through a non-brokered private placement, priced at 30 Canadian cents per share, for a total of C$4,623,000. As of today, including the shares already owned by Kinross, the company holds shares representing about 19.9% of Relevant Gold's total outstanding shares.

Before the transaction is completed, Kinross has ownership of 5,100,000 shares, or about 6.8% of the total outstanding shares, along with 2,550,000 share purchase warrants of Relevant Gold, representing roughly 9.9% of the outstanding shares on a partially diluted basis (assuming the warrants are exercised). After the transaction, Kinross will hold 20,510,000 shares and 2,550,000 warrants, equating approximately 19.9% of the total outstanding shares on a non-diluted basis and about 21.8% on a partially diluted basis (assuming the exercise of the warrants). 

Kinross has agreed not to exercise its warrants if doing so would increase its ownership to more than 20% of the total outstanding shares unless Relevant Gold obtains approval from disinterested shareholders for the creation of a new control person.

Kinross has agreed to acquire the shares as part of a strategic investment in Relevant Gold. In the future, Kinross may choose to buy or sell Relevant Gold securities either on the open market or through private transactions, depending on market conditions and other factors. At present, Kinross has no specific plans or intentions related to its investment in Relevant Gold. However, depending on factors such as market conditions, the broader economy, Relevant Gold’s business and financial conditions, and other considerations, Kinross may develop new plans or intentions over time.

The transaction is contingent upon meeting certain customary conditions and is expected to be completed in March 2025.

Shares of Kinross have gained 99.6% over the past year compared with its industry’s rise of 38.2%. 

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For 2025, Kinross expects production to be 2 million gold equivalent ounces (+/- 5%). The company expects a production cost of sales of $1,120 per gold equivalent ounce (+/- 5%) for the year. The company expects all-in-sustaining cost per gold equivalent ounce of $1,500 for 2025. Attributable capital expenditures are predicted at roughly $1,150 million (+/- 5%) for this year.

KGC’s Rank & Key Picks

KGC currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Methanex Corporation MEOH and Axalta Coating Systems Ltd. AXTA

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 218.2% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Methanex, which currently carries a Zacks Rank #2, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 85.2%, on average. MEOH’s shares have gained 1.5% over the past year. 

Axalta Coating Systems, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 16.3%, on average. AXTA’s shares have rallied 10.7% over the past year.
 

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