Canada-based senior gold producer Kinross Gold Corporation (TSX: K; NYSE: KGC) has sold nearly 30mn common shares in Asante Gold for CAD46.2mn ($33.8mn), cutting its position by around 44.7 % to 5.2% of the Ghana-focused miner’s outstanding equity. The shares, placed at CAD1.55 ($1.13) each, accounted for just over 4% of Asante’s stock.

Kinross has operations and projects in the US, Brazil, Chile, Mauritania and Canada. The company produced 2.15mn gold equivalent ounces in 2024 at an all-in sustaining cost (AISC) of about $1,341 per oz, generating revenue of $5.6bn. The company has a market capitalisation of roughly $7bn and has been reshaping its portfolio in recent years, exiting Russia and Ghana while reinvesting in lower-risk jurisdictions.

Asante is a gold exploration, development and operating company with a high-quality portfolio of projects and mines in Ghana. It is currently operating the Bibiani and Chirano Gold Mines and continues with detailed technical studies at its Kubi Gold Project. All mines and exploration projects are located on the prolific Bibiani and Ashanti Gold Belts.

Kinross disclosed its Asante divestment in a September 11 Canadian Early Warning Report, saying the move was part of routine portfolio management. The company still holds 36.9mn shares, 5mn warrants and a convertible debenture priced at CAD1.81 ($1.32), leaving it with 13.2% of Asante on a partially diluted basis.

The shares had originally been issued to Kinross in 2022 when Asante acquired the Chirano mine. Asante’s president and CEO Dave Anthony said the sale allowed Kinross to monetise part of that consideration at a premium.

 “This block of shares was issued to Kinross as partial consideration when the company purchased the Chirano Mine from Kinross in 2022,” he said. “Kinross has been and remains a very supportive partner to Asante and we’re pleased that Kinross has been able to monetize this component of the original share consideration at an increase to the original value.”

Asante has been scaling up output while investing in exploration to extend mine life. In the fiscal year ended on 31 January 2025, the Ghanaian company produced about 189,600 gold equivalent ounces, down from approximately 215,000 the year before, according to results published in July. It expects to produce between 155,000 and 175,000 oz at each of Bibiani and Chirano in the year ending on 31 January 2026.

The move by Kinross comes as Asante strengthens its balance sheet, raising CAD237mn ($174mn) in August through a private placement of subscription receipts at CAD1.45 ($1.07) each, part of a wider $500mn financing package to advance its gold projects.

Costs have risen sharply. In its April-quarter results, Asante reported Bibiani’s AISC at $3,693/oz, up from $1,752/oz a year earlier, while Chirano’s climbed to $2,587/oz from $1,951/oz. The company cited higher stripping costs, lower grade ore and increased sustaining capital expenditure as factors.