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Faruqi & Faruqi, LLP Announces Investigation of Kinross Gold Corporation (KGC)
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Kinross Gold Corporation (“Kinross” or the “Company”) (NYSE: KGC).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) the drilling results from the Kinross Tasiast property yielded mostly low-grade ores; (2) because of Kinross’ low-grade yields from Tasiast, the Company would need to modify its mining processes so as to minimize operating costs and maximize profitability; (3) because of the situation described above, applicable accounting standards required the Company to record an impairment in the value of goodwill that Kinross attributed to the Tasiast property; and (4) the Company’s financial statements were not fairly presented in conformity with International Financial Reporting Standards and were materially false and misleading.
On January 16, 2012, Kinross issued a press release announcing its preliminary 2011 results and 2012 outlook. The press release noted that the Company’s three major growth projects at Tasiast, Fruta del Norte and Lobo-Marte would require significant capital expenditures. Moreover, as drilling results were coming in for the Tasiast project, Kinross had elected to conduct a comprehensive capital and project optimization process with the aim of efficiently advancing development of the project and generating enhanced returns on capital. The press release also disclosed that “[i]n view of the Company’s evolving understanding of Tasiast project parameters, and market conditions, including industry-wide increases in capital and operating costs, the Company expects to record a material non-cash accounting charge, primarily relating to the goodwill recorded for the Tasiast mine,” which totaled $4.6 billion in September 30, 2011. In response to the Company’s extremely disappointing announcement, the price of Kinross’ common stock plunged nearly 19%, from $12.65 per share on January 13, 2012 to $10.27 on January 17, 2012.
If you purchased Kinross securities between February 16, 2011 and January 17, 2012 and would like to discuss your legal rights, contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Kinross’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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