Tonight’s NR means Kinross (K.to) (KGC) has closed the book on its Fruta del Norte (FDN) snafu by rescuing a little of the money it spent there. The basic need to know is that K wrote down a total of $730.1m from its little excursion into Ecuador back in 2013 and has now sold its rights to (what will be) Lundin Gold for $240m in cash and shares. A big loss yes, but a) it’ll be another “blame it on Tye” moment and b) as FDN had been written down to zero tonight’s announced deal means 21c/ share has just been added, as if by magic, to the K balance sheet. Current assets, too.
And 21c isn’t a bad number when your share price has been knocked down to U$2.90.
As for Lundin, let’s wish ’em luck. They’ll need it.