Kinross Gold

Canadian gold miner Kinross Gold gets rid of a number of divisions

The Canadian company Kinross Gold has announced the sale of one of its assets in Africa. We are talking about the company Chirano, located in Ghana. Asante Gold will acquire 90% of the shares of the company. The African government owns 10% of the company. The amount of the deal is $225 million, of which $115 million will be paid in cash and $50 million – in shares, $60 million is deferred compensation, and $30 million of this amount will be issued after one year after the sale, and the rest of the money – in two years.
In addition, in the event that the 9.9% stake fails to meet the $50 million figure, the deferred consideration will be revised upward. This arrangement allows Kinross Gold to become the owner of 9.9% of Asante Gold Corporation’s securities.
The deal means that Kinross Gold has gotten rid of all of its Ghanaian assets. According to the information for the last year, Chirano’s output amounted to about 155 thousand ounces. The cash cost per ounce sold was 1359 dollars. In total, the gold mine is estimated at 890 thousand ounces.

gold miner Kinross GoldKinross Gold was founded in 1993 and has since become one of the largest gold miners in the world. The main office is located in Toronto. In addition to large-scale production of the precious metal, the business participates in social activities and implements various environmental projects. One of the critical strategies of Kinross Gold is to reduce harmful emissions and improve the process of gold mining to make it safer for people and the environment.
The company has operations in various countries, including Mauritania, Chile, the United States, and Brazil. Not long ago, it owned a large deposit in Eastern Europe, but as a result of the geopolitical conflict and sanctions imposed on the aggressor, Kinross Gold was forced to sell its business there. The transaction amounted to $680 million, and the buyer was a local company Highland Gold.
Initially, financial analysts valued the Canadian producer’s assets at $1.5-2 billion, but because Kinross Gold left the European market for a short time, it had to get rid of the unit at an undervalued price. In addition, the mines are located in inaccessible areas, which also influenced the decision to sell. The stated amount will be paid in various ways. At closing, Kinross Gold received $100 million, and the next $150 million payment is scheduled for 2023. The amount will then be paid in different installments between 2024 and 2027.