Kinross says Tasiast producing again
Canadian Kinross Gold Corp. (TSX:K, NYSE:KGC) announced on Monday that workers at its Tasiast gold mine in Mauritania, West Africa, have returned to work after an unlawful stoppage which halted mining and processing activity.
Canada’s number 3 gold miner by output said about 600 workers had returned after the four-day strike.
The Tasiast mine, which produced approximately 200,000 gold equivalent ounces in 2011, is Kinross Gold’s key development. The deposit holds proven and probable reserves of some 7.5 million ounces.
The company’s stock price has been hammered of late due to a $4.6 billion writedown and alleged violations of securities laws.
Shares of the Toronto-based miner closed at C$8.51 on Friday on the Toronto Stock Exchange. The $9.7 billion company with projects around the world has lost some $3 billion of its worth since the beginning of the year.
In April, the company was forced to write down the value of its Tasiast project, in connection with 2010 acquisition of Red Back Mining and its Tasiast mine for $7.1 billion, of which $4.6 billion was recorded as goodwill.
Shortly after, US securities litigation firm Holzer Holzer & Fistel announced it was investigating potential violations of federal securities laws by Kinross, specifically whether the miner knowingly overstated gold grades at its Tasiast property. Both factors led to a selloff in Kinross stock.