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Gold/Mining/Energy : Kinross Gold -- Ignore unavailable to you. Want to Upgrade?

To: tk who wrote (108)	2/11/1998 2:54:00 PM
From: Grant Baker	Read Replies (1) \| Respond to of 530

A copy of Canacord's analysis of the deal (not positive) can be found on the MIQ thread at: Message 3401970 For those that don't know, K has optioned a working interest in MIQ's Railroad project, located on the Carlin trend in Nevada.

To: tk who wrote (108)	2/11/1998 9:25:00 PM
From: Mark Kubisz	Read Replies (1) \| Respond to of 530

>>Correct me if I'm wrong, combined companies plus additional equity issues will leave Kinross with >>about 276 million shares >>outstanding. At a price of C$5.05 (Closed Deal Price) a share, the >>acquisition of Amax is valued at about C$818 million (US$572>million). According to AMAX 1997 >>statements they have US$865 million in assets, US$600 million in >>debt, US$335 million of debt will be >>retired, leaving US$265 million. Thus US$865-US$265=US$600 million >>net assets, US$572-US$335 >>= US$237 net purchase price. >>Looks like a good deal for Kinross . I'm afraid you've made a mistake in your analysis. As the following paragraph from a WSJ article makes clear, the $335 million in debt will be retired by the merged company. Therefore, the assets Kinross are purchasing are worth, using your numbers, $865 - $600 million = $265 million. >>To slash $335 million of Amax's debt, Kinross will use the $135 >>million of proceeds from Cyprus Amax, >>draw about $100 million of Kinross's cash and raise $120 million >>from an issue of rights to an underwriting syndicate led by CIBC >>Wood Gundy Securities Inc., Toronto.