Kinross Recovered Slightly More Than Half Of Its Losses From Russian Asset Sale
Kinross Gold Corporation (TSX: K) finally closed its Russian chapter on Wednesday when it completed the previously announced sale of 100% of its assets in the country, supposedly including the Kupol mine and the Udinsk development project. The total consideration for the transaction is US$340 million.
In its Q1 2022 financials, the firm recorded a $606.1 million loss from discontinued operations leading to a quarterly loss of $523.9 million.
The mining company previously stated that the consideration for the asset sale was US$680 million which would entail a US$100 million upfront payment and annual scheduled payment until 2027. But the transaction underwent a review by the Russian Sub-commission on the Control of Foreign Investments which set the cap at US$340 million.
Kinross agreed with the arrangement and closed the transaction, stating that it now has “no further obligations or liabilities in the country.”
“After the completed divestment of our Russian business, Kinross’ rebalanced portfolio maintains a substantial production outlook anchored by its two tier one assets – Tasiast and Paracatu – as well as a strong portfolio of mines in the Americas, a growing business in Chile, and the large, world-class Great Bear project in Canada,” said CEO J. Paul Rollinson.
The transaction is set to be satisfied with an upfront US$300 million cash payment and a deferred US$40 million payment after one year.
Kinross Gold Corporation last traded at $5.29 on the TSX.
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