Faruqi & Faruqi, LLP Announces Investigation of Kinross Gold Corporation
NEW YORK, Feb. 22, 2012 /PRNewswire/ -- 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.
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If you purchased Kinross securities between February 16, 2011 and January 17, 2012 and would like to discuss your legal rights, visit www.faruqilaw.com/KGC. You can also 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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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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