Stick to Canada may be the new motto at Kinross.

 

The Globe and Mail reports in its Wednesday, Jan. 30, edition that Kinross Gold and Newmont Mining took writedowns of $2.49-billion and $1.6-billion last year. The Globe's Sean Silcoff writes the ones to watch in 2013 are Barrick Gold, Goldcorp and Kinross (yet again). Barrick appears likely to take a hit on the value of its Lumwana copper mine in Zambia, which it picked up in its $7.3-billion takeover of Equinox Minerals two years ago. Stifel Nicolaus analyst George Topping and Veritas Investment Research analyst Pawl Rajszel says the Equinox assets could be written down by more than $1-billion. Barrick and Goldcorp have major mining projects in Argentina that could see big writedowns. Kinross has already written down its Tasiast mine project in Mauritania by $2.49-billion. Kinross boss Paul Rollinson will file a new plan for Tasiast this year, which could herald further writedowns. Of greater concern is its Fruta del Norte project in Ecuador. Kinross is trying to negotiate better royalty and tax terms with the government but is months past an expected resolution. If it cannot get acceptable terms, Kinross may walk away, resulting in a writedown of $650-million.