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Kinross Gold Corporation Message Board

  • kirksiemens kirksiemens Jun 12, 2013 5:58 PM Flag

    Midnight Trader Writeup

    I don't know much about this source, it showed up on my list of articles from within my broker account, so many of you probably have the same information. And PLEASE forgive me, if someone has already posted information on this that I am repeating. I'd hate to be the nerd in the room who says something while everyone rolls their eyes and says. "duhhh, pay attention dweeb".

    Analyst Actions: Kinross Gold Rated Outperform
    11:31 AM EDT, 06/12/2013 (MidnightTrader) -- Kinross Gold Corp. (KGC)
    A. Soni
    CP: US$ 5.94
    TP: US$ 10
    CAP: US$ 7.2b

    FDN negotiations over, $720M impairment was flagged in Q1 MD&A - no impact to our NAV
    Event: On June 10th, 2013 after market Kinross announced that it will not proceed with further development of the Fruta del Norte project in Ecuador. Kinross' economic evaluation license for the project expires on August 1, 2013, at which point the La Zarza concession, which contains the entire FDN mineral resource, will revert to the government. Kinross will record a $720M impairment charge in Q2 ($20M cash portion related to severance and closure costs) as a result of the cessation of development.

    ---cut portion out---

    We carried zero value in our NAV for FDN subsequent to Q1/13: We reduced our NAV for FDN to $0 after Q1/13 based on the potential for no agreement with the government as a likely outcome (see our report dated May 7, Q1EPS in-line and on track for 2013 guidance). Previously, we had carried $655M, or 6% in our pre-Q1 KGC NAV for FDN.

3.73-0.19(-4.85%)2:47 PMEDT