TORONTO — Shares of Kinross Gold Corp. fell more than 10 per cent in trading Wednesday as the gold miner said the government in Mauritania has requested talks regarding its activities in the country.
The Canadian gold miner, which is near completion of its Tasiast mine in Mauritania, said its application to convert its Tasiast Sud exploration permit into an exploitation permit was recently rejected by the government.
Kinross said the government rejected the conversion application because it failed to meet feasibility criteria, but that the gold miner disagreed with the decision.
Since then, Kinross said it has received a letter from the government reaffirming the rejection and seeking “mutually beneficial discussions with respect to all of the company’s activities in Mauritania.”
Kinross chief executive Paul Rollinson says the company is assessing the request.
The drop in the stock came despite a better-than-expected profit for its most recent quarter.
After the close of markets Tuesday, Kinross, which keeps its books in U.S. dollars, reported a profit of US$106.1 million or eight cents per diluted share, down from $134.6 million or 11 cents per diluted share the year prior.
On an adjusted basis, Kinross said it earned 10 cents per share, up from two cents a year ago. Analysts on average had expected a profit of a nickel per share, according to Thomson Reuters Eikon.
Kinross produced 653,937 attributable ounces of gold in the quarter, down from 671,956 gold equivalent ounces a year ago.
Shares in the company were down 69 cents at C$4.65 in trading on the Toronto Stock Exchange on Wednesday.
Companies in this story: (TSX:K)
The Canadian Press