It went like this:
- In the post “Kinross: Russian Bear beats Great Bear” on Friday*, this humble corner of cyberspace posts on the issues facing Kinross due to its Russia exposure and share price drop, but finishes by identifying Special K as a possible M&A target due to the discount on its asset book (and the potential for Barrick to swoop in)
- The comments section includes a link to Mining FinTwit
- The Mining FinTwit expert accountant person (with a whole bunch of likes, eyeballs, RTs etc) thinks Kinross has cash/liquidity problems, is in major trouble and should be avoided by one and all
- Your author replies that it is not the issue thusly, with bold type added:
The issue isn’t cash flow, KGC is asset-rich and that’s what 3rd parties covet. Kupol’s FCF has been important to Special K, absolutely, but everyone (including K) knows the asset is depleting. After all, it’s why they shelled out for GBR. Special K can easily raise more liquidity on its performing assets, the issue is its PPS weakness and this window on a weakened peer. Bristow must be looking hard now, GOLD is cash rich and can extinguish the K liabilities with relative ease.
And Mining FinTwit is dumb. Sorry, it just is.
Cut to this afternoon, and…
TORONTO, March 07, 2022 (GLOBE NEWSWIRE) — Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross”) announced today that it has arranged a new US$1.0 billion term loan. The three-year term loan will mature on March 7, 2025, has no mandatory amortization payments, and has a flexible repayment schedule.Continues here
*Spooky to think that was just two trading days ago. Time flies when it’s Life During Wartime