Kinross Gold Corporation
Kinross Gold Corporation (NYSE: KGC)
MURRAY FRANK LLP is investigating securities fraud claims against Kinross Gold Corporation (“Kinross” or the “Company”) (NYSE:STU) and certain of its officers, on behalf of purchasers of Kinross securities between February 16, 2011 and January 17, 2012, inclusive (the “Class Period”).
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The investigation concerns violations of the Securities Exchange Act of 1934 (the “Exchange Act”) that occurred when the Company and certain of its officers issued materially false and misleading statements during the Class Period regarding Kinross’s business operations and prospects.
Specifically, during the Class Period, Defendants made false and misleading statements about or knew but failed to disclose that: (1) drilling results at Kinross’s Tasiast property indicated high levels of low grade ores, which required significant capital expenditures to modify the Company’s mining processes to minimize operating costs and maximize profits; (2) as a result of the foregoing, under applicable accounting standards, the Company was required to record an impairment to goodwill attributed to the Tasiast property; (3) the Company’s financial statements failed to conform with International Financial Reporting Standards; and (4) as a result, Defendants lacked a reasonable basis for their optimistic statements about the Company and its business operations and prospects during the Class Period.
On January 16, 2012, the Company issued a press release announcing its preliminary operating results for full-year 2011 and its outlook for 2012. The press release disclosed that the Company’s three major growth projects, including its Tasiast project, will require significant capital expenditures over the next several years, and reported that “given the Company’s increased understanding of the Tasiast ore body and potential for alternative mining and processing rates and sequences,” the Company will undertake a “comprehensive capital and project optimization process” aimed at improving capital efficiency, project sequencing, and investment returns.
In addition, the press release revealed that “[i]n view of 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,” valued at $4.6 billion as of September 2011. On this news, Kinross’s stock price fell more than 18%, from a close of $12.65 per share on January 13, 2012 to a close of $10.27 per share on January 17, 2012.
If you purchased Kinross securities within the Class Period, you may move the Court, not later than April 16, 2012, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY FRANK LLP
Bridget Hamill
212-682-1818
800-497-8076
[email protected]
www.murrayfrank.com
MURRAY FRANK LLP is investigating securities fraud claims against Kinross Gold Corporation (“Kinross” or the “Company”) (NYSE:STU) and certain of its officers, on behalf of purchasers of Kinross securities between February 16, 2011 and January 17, 2012, inclusive (the “Class Period”).
Join the Class Action
Firm Resume
The investigation concerns violations of the Securities Exchange Act of 1934 (the “Exchange Act”) that occurred when the Company and certain of its officers issued materially false and misleading statements during the Class Period regarding Kinross’s business operations and prospects.
Specifically, during the Class Period, Defendants made false and misleading statements about or knew but failed to disclose that: (1) drilling results at Kinross’s Tasiast property indicated high levels of low grade ores, which required significant capital expenditures to modify the Company’s mining processes to minimize operating costs and maximize profits; (2) as a result of the foregoing, under applicable accounting standards, the Company was required to record an impairment to goodwill attributed to the Tasiast property; (3) the Company’s financial statements failed to conform with International Financial Reporting Standards; and (4) as a result, Defendants lacked a reasonable basis for their optimistic statements about the Company and its business operations and prospects during the Class Period.
On January 16, 2012, the Company issued a press release announcing its preliminary operating results for full-year 2011 and its outlook for 2012. The press release disclosed that the Company’s three major growth projects, including its Tasiast project, will require significant capital expenditures over the next several years, and reported that “given the Company’s increased understanding of the Tasiast ore body and potential for alternative mining and processing rates and sequences,” the Company will undertake a “comprehensive capital and project optimization process” aimed at improving capital efficiency, project sequencing, and investment returns.
In addition, the press release revealed that “[i]n view of 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,” valued at $4.6 billion as of September 2011. On this news, Kinross’s stock price fell more than 18%, from a close of $12.65 per share on January 13, 2012 to a close of $10.27 per share on January 17, 2012.
If you purchased Kinross securities within the Class Period, you may move the Court, not later than April 16, 2012, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you wish to discuss this investigation, or have any questions concerning this notice or your rights or interests with respect to these matters, please contact us.
Contact:
MURRAY FRANK LLP
Bridget Hamill
212-682-1818
800-497-8076
[email protected]
www.murrayfrank.com