Toronto, Ontario – May 2, 2002
Kinross Gold Corporation (TSE-K; Amex-KGC)
announces the intent to deliver into its relatively
small gold forward sales and not replace these hedges due to the improving environment for the gold
sector and for Kinross in particular. Although Kinross has never maintained a very large gold hedge
position, the Company has periodically adjusted its gold hedges depending on specific market
circumstances. During the difficult times for gold prices over much of the last five years, it was prudent
for the Company to have at least a modest gold hedge position due to the magnitude of financial
leverage inherent in the Consolidated Balance Sheet of Kinross. The Company entered into gold
forward sales contracts, spot deferred forward sales contracts and written call options for some portion
of expected future production to mitigate the risk of adverse price fluctuations. The Company does not
hold these financial instruments for speculative or trading purposes. The Company is not subject to
margin requirements on any of its hedging lines.
The outstanding number of ounces, average expected realized prices and maturities for the gold
commodity derivative contracts as at April 30, 2002 were as follows:
Robert M. Buchan, Chairman & CEO stated that “In a word, Kinross’ approach to gold hedging could be
described as opportunistic. Our modest exposure to gold forward contracts has served Kinross well
over the past several years, allowing the company to consistently realize higher gold prices than
available spot prices and generate significant cash flow that has generally been used to increase cash
balances or reduce debt. Our small position in call options sold, is a residual from a strategy employed
to partially finance the acquisition of a portion of our massive land position in Timmins in the fall of
1999, when the gold price became very volatile after establishing a 20–year low in August of 1999. We
are now in a new environment requiring a fresh look at our approach to gold hedging and we have
concluded that delivering into our modest gold book is appropriate.”
This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of
the United States Securities Exchange Act of 1934, as amended. All statements, other than statements
of historical fact, included herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and objectives of Kinross Gold
Corporation (“Kinross”), are forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such statements. Important factors that could
cause actual results to differ materially from Kinross’ expectations are disclosed under the heading