Speaking at the RBCCM Gold Day in London, Kinross Gold (NYSE:KGC) CEO, Tye Burt, boasted of possibly having the "fastest growing gold deposit in the world."
He was talking about Tasiast, the gold mine located in Mauritainia, which came with the acquisition of Red Back Mining.
Burt seems to be touting the project strongly because of concerns he may have paid too much for it. Burt is saying the growth potential of Tasiast will more than make up for the steep cost to obtain it.
Current drilling at Tasiast has expanded the resource by close to half a billion ounces, added Burt.
He goes so far as to state that among the major gold miners, Kinross is positioned to grow the most with their combined mining assets.
Kinross hasn't done much over the last year as far as share price, actually losing some from the same time a year ago.
If they can pay down their debt while increasing production at the rate they envision, that could change very soon. It's mostly a matter of will, and it seems they have it. At that time the share price could very well take off.
Kinross closed Thursday at $18.66, losing $0.03, or 0.16 percent.
Showing posts with label Red Back Mining. Show all posts
Showing posts with label Red Back Mining. Show all posts
Friday, November 12, 2010
Thursday, September 9, 2010
Canaccord Maintains "Buy" on Kinross (NYSE:KGC)
Canaccord Genuity said it is maintaining its "Buy" rating on Kinross Gold (NYSE:KGC), while raising their price target to $24.50.
"Raising our rating and PT based on additional information provided regarding Kinross’ preliminary development plans and view of the conceptual resource potential at Tasiast. Our updated analysis indicates that the Red Back acquisition is likely to be accretive to our valuation," said Canaccord's analyst.
Questions have been raised in some quarters on whether or not the resources "hidden" in Tasiast are as deep as asserted.
If not, it is thought Kinross will only break even on the deal at the price they bid for Red Back Mining (TSE:RBI).
"Raising our rating and PT based on additional information provided regarding Kinross’ preliminary development plans and view of the conceptual resource potential at Tasiast. Our updated analysis indicates that the Red Back acquisition is likely to be accretive to our valuation," said Canaccord's analyst.
Questions have been raised in some quarters on whether or not the resources "hidden" in Tasiast are as deep as asserted.
If not, it is thought Kinross will only break even on the deal at the price they bid for Red Back Mining (TSE:RBI).
Wednesday, September 8, 2010
Kinross (NYSE:KGC) CEO Says Tasiast Mine Production will Exceed Estimates
With the vote on whether or not Kinross Gold Corp. (NYSE:KGC) shareholders will give the go ahead for the proposed $6.6 billion acquisition of Red Back Mining Inc. (TSE:RBI), coming up, the focus is on the Tasiast mine, which will be the key to a successful transaction.
Kinross Gold Corp. Chief Executive Officer Tye Burt has been out stumping for the deal to go through, saying the analysts’ estimates for the Tasiast mine are far short of the reality.
Burt said this in an interview, “We put out numbers yesterday that would guide the Street to significantly higher numbers, some six times the throughput that’s currently being done at that mine.”
Not everyone is convinced though, as investor advisement firm RiskMetrics Group Inc. recommended to Kinross shareholders that they should vote against the deal.
RiskMetrics said the gold production at Tasiast would have to be “significantly higher” to bring the project to a point of breaking even.
Burt sees no problem with the deal going forward, and hasn't heard shareholders express opposition to the deal.
Kinross Gold Corp. Chief Executive Officer Tye Burt has been out stumping for the deal to go through, saying the analysts’ estimates for the Tasiast mine are far short of the reality.
Burt said this in an interview, “We put out numbers yesterday that would guide the Street to significantly higher numbers, some six times the throughput that’s currently being done at that mine.”
Not everyone is convinced though, as investor advisement firm RiskMetrics Group Inc. recommended to Kinross shareholders that they should vote against the deal.
RiskMetrics said the gold production at Tasiast would have to be “significantly higher” to bring the project to a point of breaking even.
Burt sees no problem with the deal going forward, and hasn't heard shareholders express opposition to the deal.
Thursday, August 5, 2010
Kinross Gold (NYSE:KGC) Board Declares Dividend
The Board of Directors of Kinross Gold (NYSE:KGC) (TSE:K) declared a dividend of 5 cents a share, the same dividend the gold miner has paid since September, 2009.
The semi-annual dividend, is payable on September 30 to shareholders of record at the close of business on August 31.
Joining other gold miners looking to expand their investor base by increasing dividends, Kinross last raised the dividend in September 2009 from 4 cents to 5 cents, where it remains after this declaration.
Kinross recently made a friendly offer to acquire the rest of Red Back Mining (TSE:RBI) they don't own, costing about $7 billion for the remainder of the company.
The semi-annual dividend, is payable on September 30 to shareholders of record at the close of business on August 31.
Joining other gold miners looking to expand their investor base by increasing dividends, Kinross last raised the dividend in September 2009 from 4 cents to 5 cents, where it remains after this declaration.
Kinross recently made a friendly offer to acquire the rest of Red Back Mining (TSE:RBI) they don't own, costing about $7 billion for the remainder of the company.
Tuesday, August 3, 2010
Kinross (NYSE:KGC) Acquires Rest of Red Back (TSE:RBI)
Kinross Gold Corporation (TSX:K)(NYSE:KGC) announced late Monday that they'll be acquiring the rest of the common shares they don't already own in Red Back Mining Inc. (TSX:RBI).
On a fully diluted basis, the deal is valued at $7.1 billion.
Shareholders in Red Back, per terms of the deal, will receive 1.778 Kinross common shares, plus 0.110 of a Kinross common share purchase warrant for each Red Back common share held.
After the deal is completely, shareholders in Kinross will hold about 63 percent of the newly-merged company, while Red Back shareholders will own close to 37 percent.
The combined gold production estimates for the new company by 2015 will be an estimated 3.9 million ounces, according to analysts' estimates. Kinross has stated they think those estimates could be far below the potential assets coming with Red Back.
In 2010, pro forma gold production is expected to reach 2.6 million to 2.7 million gold equivalent ounces.
After the deal the company will have a total of 10 mines and 4 development projects, with operations in 8 countries.
Proven and Probable mineral reserves in the merged company will surge to 53.2 million ounces, while Measured and Indicated mineral resources will increase to 19.5 million ounces.
Kinross CEO Tye Burt and Red Back CEO Richard Clark said this in a press release:
"This is a transformational opportunity," said Burt. "By combining Kinross' world-class mines, growth projects and proven ability in mine development with the potential of Red Back's assets, we are creating a gold growth powerhouse. The significant upside in reserves that we believe exists at Red Back, and Kinross' ability to accelerate that potential, makes this an outstanding prospect for shareholders of both companies."
"Kinross' record of successful project development and delivery together with the world class prospects of Tasiast is an exciting and unique combination," added Clark. "The growing underground production profile at Chirano and Red Back's prospective exploration portfolio fits neatly with the impressive asset base of Kinross. Red Back shareholders will benefit by participating in a large and well-diversified major gold producer with a core stable of high quality producing assets, significant expansion opportunities and an exciting exploration portfolio."
On a fully diluted basis, the deal is valued at $7.1 billion.
Shareholders in Red Back, per terms of the deal, will receive 1.778 Kinross common shares, plus 0.110 of a Kinross common share purchase warrant for each Red Back common share held.
After the deal is completely, shareholders in Kinross will hold about 63 percent of the newly-merged company, while Red Back shareholders will own close to 37 percent.
The combined gold production estimates for the new company by 2015 will be an estimated 3.9 million ounces, according to analysts' estimates. Kinross has stated they think those estimates could be far below the potential assets coming with Red Back.
In 2010, pro forma gold production is expected to reach 2.6 million to 2.7 million gold equivalent ounces.
After the deal the company will have a total of 10 mines and 4 development projects, with operations in 8 countries.
Proven and Probable mineral reserves in the merged company will surge to 53.2 million ounces, while Measured and Indicated mineral resources will increase to 19.5 million ounces.
Kinross CEO Tye Burt and Red Back CEO Richard Clark said this in a press release:
"This is a transformational opportunity," said Burt. "By combining Kinross' world-class mines, growth projects and proven ability in mine development with the potential of Red Back's assets, we are creating a gold growth powerhouse. The significant upside in reserves that we believe exists at Red Back, and Kinross' ability to accelerate that potential, makes this an outstanding prospect for shareholders of both companies."
"Kinross' record of successful project development and delivery together with the world class prospects of Tasiast is an exciting and unique combination," added Clark. "The growing underground production profile at Chirano and Red Back's prospective exploration portfolio fits neatly with the impressive asset base of Kinross. Red Back shareholders will benefit by participating in a large and well-diversified major gold producer with a core stable of high quality producing assets, significant expansion opportunities and an exciting exploration portfolio."
Monday, August 2, 2010
Kinross (NYSE:KGC), Yamana (NYSE:AUY), Gold Fields (NYSE:GFI), Randgold (Nasdaq:GOLD), Reporting Earnings This Week
We continue earnings season this week, and a number of gold miners and other mining companies are ready to report this week. Here's a list of some of the major companies reporting this week.
August 3
Red Back Mining (TSE:RBI) - Reporting Before Market Opens
TOR Minerals International Inc (Nasdaq:TORM) - After Market Closes
August 4
Kinross Gold (NYSE:KGC) - After Market Close
Alpha Natural Resources (NYSE:ANR) - Before Market Opens
Natural Resources Partners LP (NYSE:NRP) - After Market Closes
Yamana Gold, Inc. (NYSE:AUY) - After Market Closes
August 5
ALAMOS GOLD INC. (TSE:AGI) - Before Market Opens
Canadian Natural Resources (NYSE:CNQ) - Before Market Opens
Gold Fields Ltd. (NYSE:GFI) - 2 A.M.
Randgold Resources Limited (Nasdaq:GOLD) - 2 A.M.
Rio Tinto (NYSE:RTP) - 4:30 A.M.
August 6
Allied Nevada Gold Corp (AMEX:ANV) - Not Available
DENISON MINES CORP.(TSE:DML) - Not Available
NEW GOLD INC.(AMEX:NGD) - Not Available
Silver Standard Resources, Inc (Nasdaq:SSRI) - Before Market Opens
PNM Resources, Inc. (NYSE:PNM) - 8:30 A.M.
August 3
Red Back Mining (TSE:RBI) - Reporting Before Market Opens
TOR Minerals International Inc (Nasdaq:TORM) - After Market Closes
August 4
Kinross Gold (NYSE:KGC) - After Market Close
Alpha Natural Resources (NYSE:ANR) - Before Market Opens
Natural Resources Partners LP (NYSE:NRP) - After Market Closes
Yamana Gold, Inc. (NYSE:AUY) - After Market Closes
August 5
ALAMOS GOLD INC. (TSE:AGI) - Before Market Opens
Canadian Natural Resources (NYSE:CNQ) - Before Market Opens
Gold Fields Ltd. (NYSE:GFI) - 2 A.M.
Randgold Resources Limited (Nasdaq:GOLD) - 2 A.M.
Rio Tinto (NYSE:RTP) - 4:30 A.M.
August 6
Allied Nevada Gold Corp (AMEX:ANV) - Not Available
DENISON MINES CORP.(TSE:DML) - Not Available
NEW GOLD INC.(AMEX:NGD) - Not Available
Silver Standard Resources, Inc (Nasdaq:SSRI) - Before Market Opens
PNM Resources, Inc. (NYSE:PNM) - 8:30 A.M.
Monday, June 7, 2010
Red Back Mining (TSE:RBI) Drawing Acquisition Interest
The recent investment by Kinross Gold (NYSE: KGC) in Red Back Mining (OTC:RBIFF.PK) (TSE:RBI) has drawn the attention of industry watchers as to the possibility of Red Back being an acquisition or merger target.
Red Back produced around 340,000 ounces of gold in 2009, and estimates it'll produce about 485,000-525,000 ounces in 2010. Those production levels going forward is what makes the company attractive to potential suitors, which some analysts believe could be producing over 1 million ounces of gold by 2015.
The valuation of the company has skyrocketed, and few companies have an interest or ability to acquire the company at this time, and so may wait it out for awhile.
If someone is interested though, that could be a mistake, as it's possible it could continue rising in value going forward, and that would make it out of the price range of all but the very highest level gold miners like Barrick Gold (NYSE:ABX), Newmont (NYSE:NEM) or Goldcorp (NYSE:GG).
There are a few others who may be interested, but Red Back already has a higher valuation than they do at this time, so we'll have to see how it all plays out.
Kinross recently paid C$600 million for its 9.4 percent stake in Red Back, and they would probably do well to just get a bigger piece of them than to take it over altogether. But they have time, and if the share price of Red Back plummets, it would definitely be a buying opportunity for Kinross or others wanting a piece of them, or all of them for that matter.
Red Back's major operations are the Chirano Mine in Ghana and the Tasiast Mine in Mauritania.
Red Back produced around 340,000 ounces of gold in 2009, and estimates it'll produce about 485,000-525,000 ounces in 2010. Those production levels going forward is what makes the company attractive to potential suitors, which some analysts believe could be producing over 1 million ounces of gold by 2015.
The valuation of the company has skyrocketed, and few companies have an interest or ability to acquire the company at this time, and so may wait it out for awhile.
If someone is interested though, that could be a mistake, as it's possible it could continue rising in value going forward, and that would make it out of the price range of all but the very highest level gold miners like Barrick Gold (NYSE:ABX), Newmont (NYSE:NEM) or Goldcorp (NYSE:GG).
There are a few others who may be interested, but Red Back already has a higher valuation than they do at this time, so we'll have to see how it all plays out.
Kinross recently paid C$600 million for its 9.4 percent stake in Red Back, and they would probably do well to just get a bigger piece of them than to take it over altogether. But they have time, and if the share price of Red Back plummets, it would definitely be a buying opportunity for Kinross or others wanting a piece of them, or all of them for that matter.
Red Back's major operations are the Chirano Mine in Ghana and the Tasiast Mine in Mauritania.
Friday, May 28, 2010
Barrick (TSE:ABX), Red Back Mining (TSE:RBI), Iamgold (TSE:IMG) Down in Toronto
Barrick Gold (TSE:ABX), Red Back Mining (TSE:RBI), Iamgold (TSE:IMG) were all down today, as Candian stocks fell, led by commodities producers and banks. This is the first drop in the Canadian market in three days.
This follows gold investors again selling off some of their gold and other precious metal holdings in order to cover equity losses.
The dollar also rose in value, which put some downward pressure on gold futures, which are down slightly on the day.
All three gold miners remain down as of 1:00 p.m. EDT.
This follows gold investors again selling off some of their gold and other precious metal holdings in order to cover equity losses.
The dollar also rose in value, which put some downward pressure on gold futures, which are down slightly on the day.
All three gold miners remain down as of 1:00 p.m. EDT.
Monday, May 10, 2010
Barrick Gold (TSE:ABX), Red Back Mining (TSE:RBI) Up, Eldorado Gold (TSE:ELD) Drops
Gold prices today were under pressure early, but found support over $1,200 an ounce, as gold mining stocks like Barrick Gold (TSE:ABX)(NYSE: ABX) and Red Back Mining (TSE:RBI) were up, especially Red Back, which surged by over 7 percent during the session, gaining $1.87 a share.
Barrick was up modestly, rising a little over 0.50 a share, and gaining a little more in electronic trading.
Eldorado Gold (TSE:ELD) (NYSE: EGO) fell on the Toronto exchange after Credit Suisse downgraded the gold miner from "outperform" to "neutral." Eldorado was up on the NYSE.
Barrick was up modestly, rising a little over 0.50 a share, and gaining a little more in electronic trading.
Eldorado Gold (TSE:ELD) (NYSE: EGO) fell on the Toronto exchange after Credit Suisse downgraded the gold miner from "outperform" to "neutral." Eldorado was up on the NYSE.
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