Kinross selling Russian business to Highland Gold for US$680-million

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The move comes at a discount to the mines’ value, and the Toronto company will have to wait years to get the bulk of the payments

is selling its Russian business to a Russian company at a discount and will have to wait years to get the bulk of the payments.

Kinross will receive only US$100-million up front, and is due to receive the balance in tranches over the next five years. The deferred payments are secured by financial guarantees, including share pledges. From a geopolitical risk viewpoint, however, Kinross will now be seen as a far less risky bet for investors. The company has long traded at a discount to peers, such as Agnico Eagle Mines Ltd., as a result of its exposure to Russia.

 

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