Wednesday, September 8, 2010

Kinross (NYSE:KGC) CEO Says Tasiast Mine Production will Exceed Estimates

With the vote on whether or not Kinross Gold Corp. (NYSE:KGC) shareholders will give the go ahead for the proposed $6.6 billion acquisition of Red Back Mining Inc. (TSE:RBI), coming up, the focus is on the Tasiast mine, which will be the key to a successful transaction.

Kinross Gold Corp. Chief Executive Officer Tye Burt has been out stumping for the deal to go through, saying the analysts’ estimates for the Tasiast mine are far short of the reality.

Burt said this in an interview, “We put out numbers yesterday that would guide the Street to significantly higher numbers, some six times the throughput that’s currently being done at that mine.”

Not everyone is convinced though, as investor advisement firm RiskMetrics Group Inc. recommended to Kinross shareholders that they should vote against the deal.

RiskMetrics said the gold production at Tasiast would have to be “significantly higher” to bring the project to a point of breaking even.

Burt sees no problem with the deal going forward, and hasn't heard shareholders express opposition to the deal.

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