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.

Barrick Gold (TSE:ABX), Red Back Mining (TSE:RBI) Up, Eldorado Gold (TSE:ELD) Drops

Gold prices today were under pressure early, but found support over $1,200 an ounce, as gold mining stocks like Barrick Gold (TSE:ABX)(NYSE: ABX) and Red Back Mining (TSE:RBI) were up, especially Red Back, which surged by over 7 percent during the session, gaining $1.87 a share.

Barrick was up modestly, rising a little over 0.50 a share, and gaining a little more in electronic trading.

Eldorado Gold (TSE:ELD) (NYSE: EGO) fell on the Toronto exchange after Credit Suisse downgraded the gold miner from "outperform" to "neutral." Eldorado was up on the NYSE.

Kinross Gold (TSE:K) Invests Red Back (TSE:RBI)

Kinross Gold (TSE:K) has acquired 24 million shares of Red Back (TSE:RBI) in a private placement, an overall investment of $588 million.

Kinross paid a slight premium for the shares, acquiring them at C$25 a share, a little above the C$24.46 close on the Toronto Stock Exchange.

Recent acquisitions by Kinross include the Dvoinoye project in Russia, for which they paid $368 million, and gold exploration company Underworld Resources, which cost them close ot C$140 million. They also sold their stake in Chile's Cerro Casale gold project to Barrick Gold (TSE:ABX).