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Kinross to buy Russian gold project for US$283 million, beats on earnings

The corporate logo of Kinross Gold Corp. is shown in this handout photo. THE CANADIAN PRESS/HO, Kinross

TORONTO — Kinross Gold Corp. says it will buy a gold project in eastern Russia for US$283 million from N-Mining Ltd. to add to its holdings in the country.

The Toronto-based miner says the deal includes payment of about US$113 million in cash and US$170 million in Kinross shares, while N-Mining will be entitled to a small share of returns from production.

Kinross already operates its Kupol and Dvoinoye mines in Russia, which account for about 20 per cent of its 2019 production guidance of 2.5 million ounces. 

News of the acquisition came as the company, which reports in U.S. dollars, reported net earnings of $71.5 million for the quarter ending June 30, up from $2.4 million in the same quarter last year.

Adjusted net earnings came to $79.6 million, or six cents per share, compared with $37.8 million or three cents per share last year. Analysts had expected earnings of $39 million or three cents per share according to financial markets data firm Refinitiv.

Revenue from metal sales was $837.8 million for the quarter, compared with $775 million last year on an increase in metal sold.

 

Companies in this story: (TSX:K)

The Canadian Press