KGC - Kinross' Russian asset sale 'positive' but well short of $1B valuation analyst says

Kinross Gold's (NYSE:KGC) Russian asset sale was limited by time and although the price is positive, it falls well short of the ~$1B valuation, Raymond James analyst Farooq Hamed said Thursday. Kinross agreed earlier this week to sell its Russian assets to Highland Gold Mining for $680M, keeping a pledge to exit the country after the invasion of Ukraine, but Hamed notes that most of the cash in the sale is deferred, with the company set to receive $100M on closing and $150M next year, with the rest due by 2027. The rush to sell the assets likely limited the buyer base Kinross would have been able to engage, Hamed said, and the deferred payment schedule is not optimal due to receivable risk, and Kinross cannot use the proceeds immediately to address the lost production or to return the capital to shareholders. The deal is subject to Russian government approval

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Kinross' Russian asset sale 'positive' but well short of $1B valuation, analyst says