- Underwriters exercised option to buy 12.5m shares at $3 each
- Company's shares have doubled in value in the past two months
Kinross Gold Corp.’s shares have more than doubled in value in the past two months. The rally may have more to run if purchases by TD Securities Inc. and Scotiabank are anything to go by.
The two firms led a syndicate of underwriters that exercised an option to buy 12.5 million shares at $3 apiece, the Toronto-based miner said Wednesday. That compares with its last closing price of $2.95 and a Jan. 19 low of $1.38.
The share purchase is additional to an already-completed public offering of 83.4 million shares. In total, gross proceeds from the transaction will be $288 million, Kinross said.
Mining companies that cut costs during three straight years of gold-price declines are surging this year as bullion rebounds.