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Kinross (KGC) Inks Deal With Government of Mauritania

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Kinross Gold Corporation KGC recently inked a definitive agreement with the government of Mauritania to provide enhanced certainty on Tasiast economics.

The agreement includes key terms such as continuation of tax exemptions on fuel duties, repayment of roughly $40 million to Kinross by the government in outstanding VAT refunds and payment of $10 million to the government by the company to resolve disputed matters.

It also introduces an updated escalating royalty structure linked to the gold price that aligns with current Mauritanian mining legislation and is comparable to other royalties in the region. The agreement also states the nomination of two observers by the government to the board of the Kinross subsidiary operating the Tasiast mine.

Kinross and the government are focused on resuming milling operations at Tasiast as well as prioritizing efforts and processes to achieve this shared objective.

The government noted that the completion of this deal is a testament to the quality of the strategic alliance between the Mauritania government and Kinross. The deal also reflects on the government’s commitment and focus on attracting responsible, experienced and long-term private sector partners in Mauritania to execute projects that advance the country’s development and provide benefits to its people.

Shares of Kinross have declined 24.3% in the past year compared with 21.7% fall of the industry.

Zacks Investment Research
Zacks Investment Research


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Kinross, last month, lowered its 2021 production guidance to 2.1 million gold equivalent ounces, compared with 2.4 million gold equivalent ounces it projected earlier on Feb 10, 2021. Kinross’ annual production outlook for 2022 and 2023 is pegged at 2.7 million and 2.9 million gold equivalent ounces, respectively.

Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation Price and Consensus
Kinross Gold Corporation Price and Consensus

Kinross Gold Corporation price-consensus-chart | Kinross Gold Corporation Quote

Zacks Rank & Key Picks

Kinross currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Olin Corporation OLN and Cabot Corporation CBT.

Nucor has a projected earnings growth rate of around 403% for the current year. The company’s shares have surged 126.1% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has an expected earnings growth rate of around 523.7% for the current year. The company’s shares have skyrocketed 264.1% in the past year. It currently sports a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 43.6% in the past year. It currently flaunts a Zacks Rank #1.


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Kinross Gold Corporation (KGC) : Free Stock Analysis Report

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