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Kinross completes sale of Russian assets

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On June 15, 2022, Kinross Gold Corporation (KGC) announced the successful sale of its Russian assets to Highland Gold Mining for $340 million. The transaction concluded with Kinross receiving $300 million in cash, alongside a deferred $40 million payment due in one year. Originally valued at $680 million, the sale price was reduced following a review by Russian authorities. With this divestment, Kinross has eliminated its Russian interests and liabilities, focusing on its tier one assets in the Americas and the Great Bear project in Canada, marking a significant portfolio rebalancing.

Positive
  • Received $300 million in cash from the sale of Russian assets.
  • Eliminated all interests and liabilities in Russia, reducing geopolitical risk.
  • Rebalanced portfolio emphasizes substantial production outlook with tier one assets.
Negative
  • None.

(All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)

TORONTO, June 15, 2022 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross”) announced today that it has completed the sale of 100% of its Russian assets to the Highland Gold Mining group of companies for total consideration of $340 million in cash. Kinross has received $300 million in U.S. denominated cash in its corporate account and will receive a deferred payment of $40 million on the one-year anniversary of closing.

As disclosed on April 5, 2022, the previously agreed total consideration for the transaction was $680 million, which included a payment of $100 million upon closing, with the remaining $580 million scheduled to be received in annual payments from 2023 through to 2027. The transaction consideration was adjusted by the parties following review by the recently formed Russian Sub-commission on the Control of Foreign Investments, which approved this transaction for a purchase price not exceeding $340 million. With the approval and completion of the sale, Kinross has divested all of its interests in Russia and 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 J. Paul Rollinson, Kinross President and CEO. “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.” 

About Kinross Gold Corporation

Kinross is a Canadian-based global senior gold mining company with mines and projects in the United States, Brazil, Mauritania, Chile, Ghana and Canada. Our focus on delivering value is based on our core principles of responsible mining, operational excellence, disciplined growth and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol:K) and the New York Stock Exchange (symbol:KGC).

Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
louie.diaz@kinross.com

Investor Relations Contact
Chris Lichtenheldt                                 
Vice-President, Investor Relations                
phone: 416-365-2761                        
chris.lichtenheldt@kinross.com

Cautionary statements on forward-looking information

All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements contained in this news release, include, but are not limited to, statements with respect to our production outlook; the future of the Company’s development projects; and the receipt of the deferred compensation in accordance with the terms of the transaction. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the "Risk Factors" section of our Annual Information Form dated March 31, 2022 and the "Risk Analysis" section of our full-year 2021 and first-quarter 2022 Management’s Discussion & Analysis. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward looking statements, except to the extent required by applicable law.

Source: Kinross Gold Corporation


FAQ

What was the total consideration for Kinross Gold's Russian asset sale?

The total consideration for the sale was $340 million.

When did Kinross Gold complete the sale of its Russian assets?

Kinross Gold completed the sale on June 15, 2022.

What will Kinross Gold receive in addition to the $300 million from the sale?

Kinross will receive a deferred payment of $40 million on the one-year anniversary of closing.

What was the original sale price of Kinross Gold's Russian assets?

The original sale price was $680 million, adjusted to $340 million due to regulatory review.

How does the sale affect Kinross Gold's portfolio?

The sale improves Kinross Gold's portfolio by eliminating Russian interests and focusing on high-quality assets.

Kinross Gold Corporation

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