Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
Kinross Gold (K.TO) erased 19.46% of its value, with shares dropping to $10.65 a share on Tuesday, after it disclosed that it will take “. . . a material non-cash accounting charge, primarily relating to the goodwill recorded for the Tasiast mine in connection with the 2010 Red Back acquisition.”
Kinross released its 2011 preliminary results and 2012 outlook on Monday evening.
In September 2010 Kinross acquired Red Back Mining and its Tasiast Mine for $7.1 billion, of which $4.6 billion was recorded as goodwill. Kinross says the goodwill impairment assessment is ongoing, and it expects to release the results of the assessment with its year-end financial results.
The company says it remains committed to the Tasiast project:
“The Company has not finalized the Tasiast feasibility study or mine plan, and drilling results processed to date continue to demonstrate significant exploration potential supporting a world class mine.”
Kinross is a Canadian-based gold mining company with mines and projects in North America, South America, Europe and Africa. It employs about 8,000 people worldwide.
3 Comments
Julian
Goodwill in a pure mining project?
Isn’t that accounting speak for saying we overpaid?
Definition of “Goodwill” is that it typically reflects the value of intangible assets such as a strong brand name, good customer relations, good employee relations and any patents or proprietary technology.
Mining companies usually don’t have any of that. So it is a case of “we overpaid”.
Dave
In reality, this is a mining and exploration projection. The goodwill paid most accurately reflects Kinross’s view on the upside potential. The other parameters haven’t changed so I guess they have revised their estimate on what the potential is?
John
Yes you are 100% right “overpaid” in this financial market place today is just plain crazy, Who done the feasibility study ? school boys ha ? or first time miners !