"August 2010. Kinross paid $7B!!! to buy 90% of Redback mining which owned the Tassiat deposit in Mali. The value of the assets acquired in the takeover were written down by $3b in February of this year."
It was an accounting write-down due to accounting rules having to use $1200 gold price. If $1400 gold price had been assumed there wouldn't have been a write-down at all. If $1600 was used then $7b would have been written upwards. Smoke and mirrors!
For that $7b Kinross also got the Ghana gold mine worth a couple of billion bucks plus $700m in cash, from memory. But the main prize is Tassiast.
Rowingboat
AMX Price at posting:
77.0¢ Sentiment: Buy Disclosure: Not Held
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