Posted on 03/03/2022 7:03:03 AM PST by MeneMeneTekelUpharsin
Study the chart on Kinross Gold, which has about 12-20% of its gold mining operation in Eastern Russia. It seems rather odd that the stock hit $7 in December and suddenly plummeted starting December 9, 2022 all the way down to $5.04 per share for no real supposed reason by December 15, 2022. The Russians invaded the Ukraine February 24, 2022.
(Excerpt) Read more at marketwatch.com ...
The drop from $7 was precipitated by an announcement that Kinross was buying Great Bear Mines. I own shares of KGC.
Today’s price pretty much is reflective of the price as if KGCs interests in Russia disappeared overnight. Not worried. KGC has been mining that region for 25 years.
That’s nice to know. It is the only western miner from my understanding operating in Russia due to the difficulty of operating there. That was an interesting tidbit too. Looks like the Russians and the Ukrainians are just different gangs in the same region.
So, why did it drop on the Great Bear acquisition?
I believe it was a cash + stock deal that didn’t sit well with the street. KGC was valuing it as a long term play and wasn’t going to immediately excavate Great Bear’s mines for five years...cost/benefit, rate of return at current costs associated with excavating, etc. With Russia issue they may have to reduce or pass their 2% dividend.
Thank you very much for the information!
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