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Kinross: Russian Bear beats Great Bear

Since announcing its U$1.4Bn purchase of Great Bear Resources, Special K (KGC) (K.to) has seen around U$845m wiped off its share price. And yes, that’s AFTER the GBR close. Ouch.

Mind you, they may not have stayed in the bidding if they’d known about Putin’s plan to (etc).

At what price does K become a target for Barrick? Paracatu and Tasiast alone are worth U$4Bn, then add in Great Bear. And before you mention it, Kupol’s property value is only 3.5% of K’s total and nobody’s idea of a dealbreaker.

6 Comments

    This question is past my pay grade, but this guy takes a more pessimistic view:

    https://twitter.com/cstackhouse/status/1499529905473830926

    Reply

        I’m not proud

        Reply

          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.

          Reply

    Wonder how the locals feel about Paracatu. Any idea?

    Reply

    […] the post “Kinross: Russian Bear Beat Great Bear” on Friday*, this humble corner of cyberspace posts on the issues facing Kinross due to its Russia […]

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