Advertisements

Canadian miner Kinross Gold selling 100% of Russian assets as it exits country | Globalnews.ca

Advertisements
Canadian miner Kinross Gold selling 100% of Russian assets as it exits country  | Globalnews.ca
Advertisements


Advertisements

Canadian miner Kinross Gold Corp. is selling all of its assets in Russia as a growing number of companies withdraw from the country following the invasion of Ukraine.

The Toronto-based gold miner said Tuesday it’s selling 100 per cent of its Russian assets to the Highland Gold Mining group of companies and its affiliates for US$680 million in cash.

Kinross owns the Kupol underground mine in the country’s eastern Chukotka region and surrounding exploration licenses as well as the Udinsk development-stage project in the Khabarovsk region.

Read more:

Will there be a ‘tipping point’ for Putin as businesses exit Russia? Experts doubt it

The company said Highland Gold is one of the largest gold mining companies in Russia with mining operations in both of the areas where Kinross has assets.

Story continues below advertisement

The transaction is subject to the approval of the Russian government.

Mike Parkin, head of mining research at National Bank Financial, said in a client note that obtaining approval from the Russian government is a potentially significant hurdle.

Still, Parkin said in the note that selling the assets to a third-party mining company is positive as it eliminates potential environmental risks associated with the sale.


Click to play video: 'The number of consumer giants suspending business in Russia is growing'



4:51
The number of consumer giants suspending business in Russia is growing


The number of consumer giants suspending business in Russia is growing – Mar 9, 2022

RBC Dominion Securities Inc. analyst Josh Wolfson called the transaction fair.

In a note to clients, he said the closing of the deal and the ability for Kinross to receive funds under current sanctions is uncertain and carries above-average risk.

Kinross is the latest in a raft of companies to exit Russia following its unprovoked attack on Ukraine.

Story continues below advertisement

It’s also one of the more significant withdrawals from the country, as other companies have largely paused or suspended operations but maintained assets on the ground.

© 2022 The Canadian Press

Advertisements

Leave a Reply

Advertisements
Advertisements
%d bloggers like this: