Boston, MA, 03/26/2014 (usastockreports)- Kinross Gold Corporation (USA) (NYSE:KGC) one of the biggest gold manufacturing companies operating from Russia has asked the Canadian government to try and resolve its standoff with Russia after the annexation of Crimea this month. Kinross Gold has huge interests in Russia of which a standoff will not be good for business, something that could considerably affect operations.
The Canadian government just like America has issued financial sanctions against Russia as well as invoking travel bans. The major concern for Kinross at the moment lies on the fact that 27% of its total gold production in 2013 came from Kupol and Dvoinoye mines in Russia. A standoff between the two countries will severely affect the company’s ability to meet its financial estimates for the year.
Kinross closes its debt securities offering
Kinross Gold Corporation (USA) (NYSE:KGC)’s cash balance is set to get a major uplift, after the company closed previously announced offering of its 10 year debt securities. The offering was made of $500 million of 5.95% senior notes that will be due in 2024.
Proceeds from the offering will be used to pay the company’s long term loan that is due in August 2017 with another portion to be used for meeting general operation expenses. The offering comes at the back of the company seeing its cash and cash equivalent for 2013 decline by a high of 63% on a year over year basis, to a low of $734.5 million.
Kinross Gold 2014 Estimates
Kinross Gold Corporation (USA) (NYSE:KGC) projects a productive year especially for its Dvoinoye mines in Russia if the standoff is amicably resolved sooner than later. The company expects its production mines to produce roughly between 2.5-2.7 million gold equivalent ounces for the year, with total an expenditure of about $675 million down by $585 million from 2013.
Tuesday was not a good day for Kinross Gold Corporation (USA) (NYSE:KGC) as its stock went down by 1.54% closing at a low of $4.49.