December 7, 1998.
Toronto, Canada -
Kinross Gold Corporation
(TSE - K; NYSE - KGC) announced today that it plans to
take a nonrecurring charge against 1998 fourth quarter results.
All amounts are expressed in United States dollars unless otherwise stated.
After a careful review of the carrying values of certain assets in the continuing low gold price
environment, the Company will record a non-cash charge of approximately $216.1 million. This write-
down will have no impact on current or future cash flow from operations.
The write-down consists of $104.6 million of excess costs resulting from the merger with Amax Gold
Inc., $46.9 million on the historical carrying value of the Refugio mine, $40.5 million on the historical
carrying value of the Fort Knox mine and the balance on other non-core assets.
The Company is using a gold price of $325 per ounce to determine its reserves as a result of continuing
low gold prices. Included in the $216.1 million is an accrual for estimated closure costs at the DeLamar
mine of $9 million.
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
"Risk Factors" and elsewhere in Kinross’ documents filed from time to time with The Toronto Stock
Exchange, the United States Securities and Exchange Commission and other regulatory authorities.
-30-
For further information:
Robert M. Buchan
Chairman and Chief Executive Officer
Tel: (416) 365-5650
Gordon A. McCreary
Vice President, Investor Relations and Corporate
Development
Tel: (416) 365-5132
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December 7, 1998.
Toronto, Canada -
Kinross Gold Corporation
(TSE - K; NYSE - KGC) announced today that it plans to
take a nonrecurring charge against 1998 fourth quarter results.
All amounts are expressed in United States dollars unless otherwise stated.
After a careful review of the carrying values of certain assets in the continuing low gold price
environment, the Company will record a non-cash charge of approximately $216.1 million. This write-
down will have no impact on current or future cash flow from operations.
The write-down consists of $104.6 million of excess costs resulting from the merger with Amax Gold
Inc., $46.9 million on the historical carrying value of the Refugio mine, $40.5 million on the historical
carrying value of the Fort Knox mine and the balance on other non-core assets.
The Company is using a gold price of $325 per ounce to determine its reserves as a result of continuing
low gold prices. Included in the $216.1 million is an accrual for estimated closure costs at the DeLamar
mine of $9 million.
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
"Risk Factors" and elsewhere in Kinross’ documents filed from time to time with The Toronto Stock
Exchange, the United States Securities and Exchange Commission and other regulatory authorities.
-30-
For further information:
Robert M. Buchan
Chairman and Chief Executive Officer
Tel: (416) 365-5650
Gordon A. McCreary
Vice President, Investor Relations and Corporate
Development
Tel: (416) 365-5132
Home
•
Corporate
•
Operations
•
Investors
•
News
•
Contact
•
Search
•
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