[an error occurred while processing the directive]
RSS
Логотип
Баннер в шапке 1
Баннер в шапке 2

Kinross Gold

Company

Performance indicators

2022: Losses of $671 million due to withdrawal from the Russian market

In the first three months of 2022, Kinross Gold received a $671 million loss due to its withdrawal from the Russian market. In addition, the Canadian gold mining company registered a quarterly net loss of $606.1 million from activities in the Russian Federation.

Sales of the Russian division of Kinross Gold in the first quarter of 2022 fell by 30% compared to the same period in 2020, to 85.937 ounces of gold equivalent. Cost of sales increased by 24%, to $761 per ounce of equivalent. Production in Russia in January-March 2022 decreased by 22% on an annualized basis to 96 thousand ounces of gold equivalent.

Canadian gold miner Kinross lost $671 million in the quarter due to withdrawal from the Russian market

Kinross production excluding Russia at the end of the quarter decreased by 6%, to 410 thousand ounces of gold equivalent. Sales of the company fell 5%, to 406 thousand ounces of equivalent. The group's quarterly revenue remained at $768 million, operating profit fell by 29%, to $102.5 million.

By May 11, 2022, according to Kinross, the company continues the process of processing a transaction for the sale of Russian assets to Highland Gold. It is noted that the approval of the authorities has not yet been received, and "in the light of unprecedented circumstances, the timing and result of such approval is unclear."

Kinross Gold has promised to comply with all instructions due to the imposition of sanctions or legal restrictions that were previously announced or will be announced by the governments of various countries where the company operates.

By May 2022, Kinross Gold is one of the ten largest gold mining companies in the world, owns projects in Brazil, Chile, Ghana, Mauritania, Russia and the United States. According to the Union of Gold Miners, Kinross Gold is the third gold mining company in Russia in terms of production. The company announced the suspension of work in the Russian Federation after the start of the Russian special operation in Ukraine.[1]

History

2022: Sale of assets for $680 million and withdrawal from the Russian Federation

As it became known on April 5, 2022 the Canadian gold mining , Kinross Gold sold Russian assets at a big discount and left. RUSSIAN FEDERATION The buyer of the business for $680 million was Highland Gold Vladislav Sviblov's company. The perimeter of the transaction includes the Kupol and Dvoyny mines in Chukotka, the Chulbatkan project in, Khabarovsk Territory a number of exploration areas and industrial infrastructure facilities.

Director of Strategy and Development of Highland Gold Anton Glazunov, in a conversation with Kommersant, said that international investment banks valued Kinross assets in the range of $1.5-2 billion. Their sales at a reduced cost are due to the hasty exit of Kinross from the Russian business, the newspaper notes.

Gold mining company Kinross Gold sold Russian assets at a big discount and left the Russian Federation

Under the terms of the agreement, Kinross will receive $400 million for the Kupol mine and nearby areas. The amount will be divided into several payments: $100 million at the close of the transaction and an additional $150 million by the end of 2023, $100 million by the end of 2024 and $50 million by the end of 2025.

In addition, Kinross will receive $280 million for the Udinsk project (Chulbatkan field): $80 million by the end of 2025, $100 million by the end of 2026 and another $100 million by the end of 2027.

File:Aquote1.png
Historically, Highland Gold and Kinross considered implementing synergies between the Dome and Kekura mines, different partnership scenarios. One of the production synergies discussed was the possibility of processing Kekura ores at the Dome after a planned decrease in the productivity of the latter in the period 2024-2025. There are also very clear logistical synergies, since Chukotka is a hard-to-reach region - said Anton Glazunov.
File:Aquote2.png

By April 2022, Kinross Gold is one of the ten largest gold mining companies in the world and in the top five in the Russian Federation. In early March 2022, Kinross announced that "due to rapidly changing conditions" it would suspend work in Russia.[2]

Notes