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Kinross sells Russian assets at half the previously agreed price

Canada’s Kinross Gold on Wednesday announced that it had completed the sale of its Russian assets, but at only half the price previously agreed with Highland Gold Mining group.

The company sold its Russian assets for $340-million, compared with the $680-million previously announced. Kinross explained that the recently formed Russian Sub-commission on the Control of Foreign Investment approved the transaction for a purchase price not exceeding $340-million.

Kinross has received $300-million in US-dominated cash in its corporate account and will receive the balance on the one-year anniversary of closing the transaction.

“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 president and CEO Paul Rollinson.

“We would like to thank our Russian workforce for their dedication, professionalism and hard work. Their ongoing commitment to safety and the environment, especially during the transition of our business in the country, has been commendable.” 

The company in March announced the sale of its Russian assets in response to President Vladimir Putin’s invasion of Ukraine, which led to Western nations imposing sanctions on Russia.

Kinross also sold its Ghana gold mine, leading to the group announcing a new guidance in April. The company said it would produce 2.15-million gold-equivalent ounces (GEOs) this year, increasing to 2.3-million GEOs in 2023. Although the 2022 guidance is down from the previously guided 2.65-million GEOs, the forecast remained unchanged on a pro-forma portfolio basis.