With the miner’s stock having fallen by nearly half since September, bankers see it a target for bigger players who are always on the hunt for deposits to replenish their reserves.
TORONTO (Reuters) – Cost overruns and a massive writedown have knocked Kinross Gold’s stock so low that some bankers see it as Canada’s biggest potential takeover play, though obstacles to a bid for the senior gold producer may be too big to surmount.
Kinross, the world’s seventh-largest gold miner, owns some huge, largely unexploited assets spread across four continents, making it an appealing target for bigger players who are always on the hunt for deposits to replenish their reserves.
Despite a huge reserve base its stock, which traded for nearly C$19 at the start of 2011, closed at C$9.90 on Friday as mounting concerns about the cost of developing its flagship project sapped investor confidence.