February 23, 2001
Toronto Ontario – Kinross Gold Corporation
(TSE-K; NYSE-KGC)
announced today the following
restructuring of its gold commodity derivative contracts.
During February 2001, Kinross repurchased spot deferred forward sales contracts representing 500,000
ounces of gold and entered into new spot deferred forward sales contracts for the same number of
ounces.
Details of the gold spot deferred forward sales program before and after the restructuring are
summarized in the following table.
Before
Year
2001
2002
2003
2004
Gold Ounces Hedged
225,000
100,000
100,000
100,000
Average Price
$310
$315
$320
$320
After
Year
2001
2002
2003
2004
Gold Ounces Hedged
225,000
100,000
100,000
100,000
Average Price
$274
$270
$270
$270
The cash gain realized on the closeout of the hedge book was $21.0 million and will be recorded into
income over the originally scheduled term of delivery. There has been no change in the written call
option position from what was disclosed previously.
Kinross continues to actively manage its exposure to changes in spot gold prices.
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For additional information contact:
Robert M. Buchan
Chairman and Chief Executive Officer
Tel.: (416) 365-5650
Gordon A. McCreary