Kinross Gold Corp. is selling its Russian business to a domestic company at a discount and will have to wait years to get the bulk of the payments. On Tuesday, Toronto-based Kinross said it is selling its Kupol mine and Udinsk development project for US$680-million to Russia’s Highland Gold Mining Ltd., which already operates in the Chukotka and Khabarovsk regions where Kinross’s properties are located.
Toronto-based Kinross put its Siberian mines up for sale after the Russian invasion of Ukraine made it politically untenable to continue to operate there.
Kinross will receive US$100-million up front and is due to receive the balance in tranches over the next five years. The deferred payments are secured by financial guarantees, including share pledges.
Owing to Russia’s pariah status on the international investment stage, the list of potential buyers for Kinross’s Siberian operations was limited, and analysts had not expected Kinross to receive the fair market value.
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