Shares of Kinross Gold Corp. KGC, +9.73% shot up 7.9% in heavy volume in afternoon trading Monday, after the gold miner announced a new “enhanced” stock repurchase program, following “constructive discussions” with investor Elliott Investment Management LP. Trading volume ballooned to 29.1 million shares, making the stock the most actively traded on the NYSE. As part of the new buyback plan, the company will repurchase $300 million worth of its shares over the rest of the year, which represents about 6.5% of the company’s market capitalization of $4.61 billion. The company will also allocate 75% of its excess cash to buy back stock. “Management met with Elliott a number of times to discuss its views on capital allocation and value creation,” said Kinross Chief Executive J. Paul Rollinson. “We share a common view that our shares offer a highly compelling investment opportunity and as a result believe that a more substantial share buyback program is a highly attractive use of excess cash.” The stock has tumbled 38.9% year to date, while continuous gold futures GC00, -0.05% have declined 8.2%, the VanEck Gold Miners ETF GDX, +1.15% has dropped 24.9% and the S&P 500 SPX, +0.70% has shed 18.8%.
