Change of Auditors and Court Application to Extend Shareholders Meeting Date
All dollar amounts stated in this press release are
expressed in U.S. dollars
TORONTO, Ontario - Kinross Gold Corporation
("Kinross" or the "Company") (TSX-K; NYSE-KGC) announces that it
has filed today its audited financial statements for the year ended
December 31, 2004 which include the audited comparative restated
financial statements for the year ended December 31, 2003 and the
related management discussion and analysis ("MD&A"), and that
it has also filed its restated quarterly financial statements and
MD&A for 2004. Kinross expects to file its quarterly financial
statements and MD&A for the quarters of 2005 by mid
December.
In finalizing the restated financial statements Kinross has made
minor adjustments to the preliminary results previously announced
in the October 20, 2005 press release, to reflect updated
information related to the size of certain exploration properties
acquired in the Echo Bay and TVX acquisition. These changes
resulted in an increase in the value of exploration properties of
$5.4 million, a related decrease in the future income tax liability
of $0.4 million and a corresponding decrease in goodwill of $5.8
million on the acquisition of TVX and Echo Bay, as of January 31,
2003. These changes resulted in a decrease in goodwill impairment
of $5.7 million and a related increase in the amount of the
impairment of Kinross' exploration properties of $0.5 million as of
December 31, 2003. The reported net loss for 2004 was slightly
higher due to a $0.2 million tax adjustment; this did not change
net loss per share.
Kinross also announced that an application (the "Application")
will be made to the Ontario Superior Court of Justice for an order
extending the time for holding the Company's 2005 annual and
special meeting of shareholders past December 31, 2005. The
application will seek an order from the Court to extend the meeting
deadline until February 28, 2006, although Kinross anticipates
holding its meeting, together with an investor information update,
in late January 2006. This meeting will replace the previously
scheduled December 21, 2005 shareholders' meeting.
Kinross hereby notifies its shareholders that a court date to
hear the Application has been set for December 13, 2005 at 10:00
a.m. to be heard at 393 University Avenue, 8 th Floor, Toronto,
Ontario. Shareholders who wish to appear on this application should
serve a Notice of Appearance, in accordance with the Ontario Rules
of Civil Procedure on Robert Cohen of Cassels Brock & Blackwell
LLP at 40 King Street West, Suite 2100, Scotia Plaza, Toronto,
Ontario, M5H 3C2 or by fax to Robert Cohen at 416-350-6929. The
Court Application materials will be made available on our website
at www.kinross.com.
In addition, Kinross announced today that it has filed a Change
of Auditor Notice and related documents with the securities
regulatory authorities of all Canadian provinces in accordance with
National Instrument 51-102 Continuous Disclosure Obligations ("NI
51-102"). Deloitte & Touche LLP has confirmed to Kinross,
following the request of the Company, that it will not stand for
reappointment as auditor of the Company for the financial year
ended December 31, 2005. In this connection, the board of directors
of Kinross has appointed KPMG LLP as its auditor for the financial
year ended December 31, 2005. The shareholders of the Company will
be asked to ratify the appointment of KPMG as auditor of the
Company at the next annual meeting of shareholders scheduled to be
held before the end of January.
In accordance with NI 51-102, there is a reportable event noted
in the Change of Auditor Notice, which consisted of the following
disagreement (as defined in NI 51-102): On November 9, 2004, the
Company entered into a letter of intent in connection with the
purchase from Rio Tinto PLC of a 51% interest in the Paracatu gold
mine in Brazil. Deloitte & Touche LLP disagreed with the
Company's view that this proposed transaction did not result in an
event or a change of circumstances during the third quarter of
2004, that more likely than not reduced the fair value of Kinross'
previously owned 49% interest in the Paracatu gold mine below its
carrying value, which would have resulted in a requirement to test
goodwill for impairment. Management ultimately agreed to assess
whether goodwill was impaired as a result of the negotiation of
that letter of intent, and the disagreement was resolved to the
satisfaction of Deloitte & Touche LLP by Kinross recognizing a
goodwill impairment of $143 million in the third quarter of
2004.
Audited 2004 financial statements including restated comparable
results for 2003 are available on SEDAR, EDGAR, and on our
website at www.kinross.com.