Kinross down 19% after announcing Tasiast project setback

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.