Toronto, Ontario -
KINROSS GOLD CORPORATION (TSE-K; NYSE-KGC)
announced today that
results for the three months and six months ended June 30, 1999 are as follows:
June 14, 1999
Toronto, Ontario - KINROSS GOLD CORPORATION (TSE-K; NYSE-KGC) announced today that effective
immediately, it is indefinitely suspending operations at its Macassa Mine in Kirkland Lake, Ontario. The
decision to suspend operations comes following a detailed review of the economic viability of the
Macassa Mine given the continued weakness in gold prices.
Robert Buchan, Chairman and Chief Executive Officer for Kinross stated: "While the Company regrets
this action, consumption of cash by continuing Macassa operations was not in the best interests of
Kinross. This decision reflects the Company's commitment to retain its balance sheet strength during
these difficult times. The above being said, I would be remiss not to thank the employees of Macassa
for their efforts in trying to sustain a cost-effective operation. They have done an admirable job under
very difficult circumstances. We sincerely hope to resume operations at Macassa when there is a
sustained improvement in the price of gold."
The mine will immediately begin an orderly shut down while the mill will continue to process ore
stockpiles including the reprocessing of tailings expected to take about three to four months. This
decision will result in the lay off of approximately 160 employees at Macassa. A core of employees will
remain on-site at Macassa to manage and maintain the facility, which is being placed on care and
maintenance status.
During the second quarter of 1997 Kinross took a write-down on the carrying value of the Macassa
operation resulting from a series of rockbursts deep in the mine. Consequently, no further write-down
of the modest carrying value of this asset is contemplated at the current time.
Even with this decision to suspend operations at Macassa, Kinross share of estimated 1999 gold
equivalent production from the company's various operations is still expected to exceed one million
ounces of gold equivalent per year with total cash cost of approximately US$190 per ounce. Second
quarter operating results to date indicate that the Company is on track to achieve this record
production at a record low total cash cost per ounce.
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.
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