Tuesday, 17 January 2012

Canada Hot Stocks: Kinross, Dundee, Whiterock, Primero

Among the companies whose shares are making notable moves in Tuesday's session are Kinross Gold Corp. (KGC), Dundee REIT (D.UN.T), Whiterock REIT (WRK.UN.T) and Primero Mining Corp. (P.T).

Kinross Gold (C$10.69, -C$2.51, -19%) said it will require an additional six to nine months of analysis and planning to develop its Tasiast gold mine in Mauritania, and expects to record a "material" non-cash impairment charge in connection with the project.

Dundee REIT (C$33.50, -C$1.57, -4.5%) said it has agreed to buy Whiterock REIT (C$15.98, C$1.68, 12%) for C$16.25 a share in cash, subject to a maximum of C$360 million, or 0.4729 of a Dundee unit for each Whiterock unit. Whiterock's board supports the offer.

Primero Mining (C$3.25, -C$0.49, -13%) said some operating results at its San Dimas gold-silver mine in Mexico in 2011 didn't meet its expectations, mainly due to lack of grade predictability. As a result, it said it's undertaking a number of operations improvements and reviewing its current reserve and resource estimation methods. It puts 2012 production at 100,000-110,000 gold equivalent ounces, reflecting the lower ore grades its recently encountered.