Kinross plans to divest its Russian assets
Kinross plans to divest its Russian assets
TORONTO, March 29, 2022 -- Kinross Gold Corporation (TSX:K; NYSE:KGC) (“Kinross” and the “Company”) today provided an
update regarding its activities in Russia.
Subsequent to Kinross’ disclosure on March 2, 2022, the Company has been developing a transition plan to divest its Russian
assets. Kinross has received a number of unsolicited proposals regarding its Russian business and is now in exclusive
negotiations with a third-party mining company regarding a potential sale of 100% of its assets in the country. Any such
divesture or change of control would be subject to Russian government approval.
As part of the exclusivity agreement and to properly maintain assets pending a change of control, the Company’s Russian
subsidiaries are continuing to operate during the transition period. Kinross will also continue to manage and mitigate the
environmental impacts of its operations. This includes overseeing monitoring systems and transporting industrial materials to
the Kupol mine that are not permitted to remain at the port to maintain safety and regulatory compliance. Kinross will continue
to prioritize the well-being of its more than 2,000 employees in the country as it develops its transition plan.
The parent company will not benefit financially from the operations while the transition plan is finalized. Current activities will be
funded through resources already in-country, with no additional investment required by the parent company.
Kinross expects to treat its Russian business as an asset held for sale from an accounting perspective until a change of
control is completed. The Company will provide updates to its guidance at the appropriate time.
About Kinross Gold Corporation
Kinross is a Canadian-based senior gold mining company with mines and projects in the United States, Brazil, Russia,
Mauritania, Chile, Ghana and Canada. Our focus is on delivering value based on the core principles of operational excellence,
balance sheet strength, disciplined growth and responsible mining. Kinross maintains listings on the Toronto Stock Exchange
(symbol:K) and the New York Stock Exchange (symbol:KGC).
Media Contact
Louie Diaz
Vice-President, Corporate Communications
phone: 416-369-6469
Investor Relations Contact
Chris Lichtenheldt
Vice-President, Investor Relations
phone: 416-365-2761
Cautionary statements on forward-looking information
All statements, other than statements of historical fact, contained in this news release, including any information as to the
future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements”
within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the “safe harbor”
provisions under the United States Private Securities Litigation Reform Act of 1995 and are based on the expectations,
estimates and projections of management as of the date of this news release, unless otherwise stated. Forward-looking
statements contained in this news release include, without limitation, statements with respect to the development and timing
of the Company’s transition plan its Russian business; the Company’s ability to pursue and successfully implement a sale or
transfer of its Russian business; the Company’s ability to safeguard the environment and the maintain the assets during the
transition plan; the Company’s ability to temporarily continue operating its Russian activities (including its ability to comply with
all applicable laws and sanctions); the ability of the Russian business to fund ongoing operations without additional capital
injections; the Company’s anticipated accounting treatment of its Russian business; and the estimated economic impact to
Kinross while the transition plan is being finalized. The words “estimate”, “expects”, “outlook”, or “plan” or variations of or
similar such words and phrases or statements that certain actions, events or results may, could, should or will be achieved,
received or taken, or will occur or result and similar such expressions identify forward-looking statements. Many uncertainties
and contingencies can directly or indirectly affect, and could cause, Kinross’ actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or on behalf of, Kinross, including but not limited to resulting
in an impairment charge on goodwill and/or assets. There can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-
looking statements are provided for the purpose of providing information about management’s expectations and plans relating
to the future. All of the forward-looking statements made in this news release are qualified by this cautionary statement and
those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the
cautionary statements made in the “Risk Analysis” section of our MD&A for the year ended December 31, 2021 and the
Annual Information Form dated March 30, 2021. These factors are not intended to represent a complete list of the factors that
could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to
explain any material difference between subsequent actual events and such forward-looking statements, except to the extent
required by applicable law.
Source: Kinross Gold Corporation