Kinross stock hammered over $720m Ecuador write-off
Kinross Gold (TSX:K, NYSE:KGC) fell 5% in after hours trading after announcing it will halt development of its Fruta del Norte project in Ecuador after failing to reach agreement the with the South American country's government about "certain key economic and legal terms."
The decision will result in a second quarter charge of $720 million for the Toronto-based company, the fifth largest gold producer in the world.
According to the Kinross news release "any possible sale of the project is currently subject to the prior approval of the government, and the government has also indicated it will not support efforts by Kinross to solicit a potential new partner, or a buyer."
After making slight gains during the regular trading session, Kinross fell 5% to $6.32 in New York after hours affording it a market value of $7.2 billion.
Like most gold counters Kinross has fallen sharply this year and is trading down 34% since January.
Kinross in February took a more than $3 billion charge relating primarily to its Tasiast mine in Mauritania which it bought in 2007 for $7 billion.