FAIRBANKS (AP) -- Kinross Gold Corp. will not appeal a decision by the board of directors of the New York Stock Exchange to delist the Toronto-based company that owns Fairbanks Gold Mining.
Tuesday was the last day on the exchange for trading Kinross stock, which will begin trading Wednesday on the less prestigious American Stock Exchange.
The company announced the move Monday.
''The most important thing for everyone is that we're removing the cloud of uncertainty for some shareholders,'' Gordon McCreary, Kinross vice president of investor relations, told the Fairbanks Daily News-Miner.
The company's stock has fallen steadily for the last four years. Kinross stock has been around 80 cents a share for the last month.
The company's stock will continue to be traded on the Toronto Stock Exchange. The company also moved the stock of its subisidiary, Kinam Gold, from NYSE to the AMEX.
The change will not affect operations at Fairbanks Gold Mining, said Tom Irwin, general manager for Fairbanks Gold. Fairbanks Gold employs 360 full- and part-time employees and contracted workers at the Fort Knox Mine and the True North gold project 30 miles north of Fairbanks.
This year Kinross has invested $20 million in the development of Fairbanks Gold's True North gold project. That's an investment the company is not going to walk away from, McCreary said.
The NYSE announced it would delist Kinross stock earlier this summer because the company had been trading at less than a dollar per share for more than a year. Kinross announced it would appeal to the board, but instead decided to move the stock to the AMEX.
In 1999 the NYSE board of directors instituted a rule that companies would be delisted from the board if their stock stayed below a dollar for a year. Kinross's stock dropped below a dollar last summer, and although it has traded above a dollar several times, the company has never been able to maintain that level. In the last year the stock has ranged from 37 cents to $1.20 a share.
McCreary blamed poor gold prices -- about $260 an ounce -- as one reason for the company's price drop.
Gold is expected to remain at low levels at least to the end of the year, said Peter Van Flein, investment representative for the local office of Edward Jones Investments.
''To be delisted is not good, but it is certainly understandable in light of pricing in today's precious market,'' Van Flein said. However, getting on the AMEX is a good move for investor confidence, he said.
''They got a silver lining to being delisted,'' he said.
© 2016. All Rights Reserved. | Contact Us