Posted on 03/03/2022 7:03:03 AM PST by MeneMeneTekelUpharsin
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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