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Kinross (KGC) and Mauritania Government Reach Agreement

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Kinross Gold Corporation (KGC - Free Report) has reached an agreement with the government of Mauritania to improve their partnership.

Per the terms of the deal, Kinross will receive a 30-year exploitation license for Tasiast Sud from the government under the 2012 Mining Convention and the 2008 Mining Code. Further, the deal reinstates the tax exemption on fuel duties and includes the repayment of around $40 million in outstanding VAT refunds to Kinross by the government.

Post completion of the definitive agreements, Kinross will pay $10 million to the government to resolve disputed issues associated with fuel use and tax exemptions. Additionally, Kinross will pay $15 million upon receiving the earlier-mentioned exploitation license to resolve any disputed issues stemming from Kinross’ prior application to convert the Tasiast Sud exploration license into an exploitation license.

The renewed partnership approach contemplates the government to receive a 15% free carried interest in Tasiast Sud along with an option to purchase an additional 10% interest in the project after completion of additional feasibility works.

Per Kinross, the balanced agreement will deliver increased stability and position Tasiast for long-term success along with providing benefits to Mauritania and its people.

Shares of Kinross have surged 85.7% in the past year compared with the industry’s 49% growth.



Zacks Rank & Key Picks

Kinross currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Barrick Gold Corporation (GOLD - Free Report) , B2Gold Corp (BTG - Free Report) and Franco-Nevada Corporation (FNV - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Barrick has an expected earnings growth rate of 54.9% for 2020. The company’s shares have surged 74.9% in the past year.

B2Gold has an expected earnings growth rate of 221.4% for 2020. Its shares have returned 86.7% in the past year.

Franco-Nevada has an expected earnings growth rate of 19.2% for 2020. The company’s shares have surged 68.3% in the past year.

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