40 King Street West, 52 Floor

Toronto, ON M5H 3Y2

Tel: 416 365 5123

Fax: 416 363 6622

Toll Free: 866-561-3636

nd

PRESS RELEASE

Kinross Announces Improved Earnings and

Cash Flow for the Second Quarter of 2004

July 29, 2004…Toronto, Ontario – Kinross Gold Corporation

(TSX-K; NYSE-KGC) (“Kinross” or the

“Company”) announced today the unaudited results for the three and six months ended June 30, 2004,

as follows:

SECOND QUARTER HIGHLIGHTS

(US dollars, unaudited)

•

•

•

Earnings of $6.6 million, or $0.02 per share, for the second quarter and $19.8 million, or $0.06 per

share, for the first half of 2004.

Cash flow provided from operating activities of $25.7 million. Excluding changes in non-cash

working capital items of $14.2 million, cash flow was $39.9 million.

Production of 420,093 gold equivalent ounces at total cash costs

1

of $241 per ounce both met

expectations. Annual production target of 1.7 to 1.75 million gold equivalent ounces at total cash

costs approximately $230 remain unchanged.

Average second quarter realized gold price was 10% higher than the same period in 2003.

Final delivery of gold hedge contracts made in the second quarter. Kinross is now fully leveraged to

the spot gold price. Excluding the hedging impact, earnings would have been $12.1 million.

Cash balance of $187.7 million and debt of $8.5 million provide financial flexibility to fund projects

and to grow the business.

Capital expenditures of $40.4 million on track to reach the forecast of $165 million for the year.

•

•

•

•

Bob Buchan, President and C.E.O. said, “Other than achieving, or doing better than, our stated goals

for the year, our strategy remains focused on bringing our new projects at Refugio and Kubaka into

production, and most importantly we intend to show a meaningful growth in reserves this year. In all

cases, I am confident that we are on track to achieving our stated objectives.”

1.

Total cash costs per equivalent ounce of gold is furnished to provide additional information and is a non-GAAP measure.

This measure should not be considered in isolation as a substitute for measures of performance prepared in accordance

with generally accepted accounting principles and is not necessarily indicative of operating expenses as determined

under generally accepted accounting principles. This measure is intended to provide investors with information about the

cash generating capabilities (realized revenue, net of total cash costs per ounce) of the mining operations. The Company

uses this information for the same purpose and for assessing the performance of its mining operations. Mining

operations are capital intensive. The measure total cash costs excludes capital expenditures but is reconciled to total

operating costs for each mine. Capital expenditures require the use of cash in the current period, and in prior periods

and are discussed throughout the MD&A. and included in the segmented information note to the consolidated financial

statements.

All results are expressed in United States dollars, unless otherwise stated, and are unaudited. All results are

presented based on Canadian Generally Accepted Accounting Principles (“CDN GAAP”). This press release is to

be read in conjunction with the second quarter Management’s Discussion and Analysis (“MD&A”) and the Notes

to the Financial Statements (“Notes”) for the three and six months ended June 30, 2004. The MD&A and Notes

can be found on our website at www.kinross.com and will be filed on SEDAR at www.sedar.com and EDGAR at

www.edgaronline.com prior to the filing deadline of August 15, 2004. Readers are cautioned that results

presented in this press release are preliminary and may differ from results filed with regulatory authorities.



Key Financial Highlights

(in United States dollars)

(Unaudited, Canadian GAAP)

Three months ended

June 30,

2004

2003

$ 160.9

$

6.6

$ 25.7

$ 0.02

346.0

$ 157.8

$

(7.7)

$ 17.8

$ (0.02)

314.7

Six months ended

June 30,

2004

2003

$ 317.5

$ 19.8

$ 43.3

$ 0.06

345.9

$ 278.8

$ (21.8)

$ 34.0

$ (0.08)

284.1

Financial Results

(millions except per share)

Revenue

Net earnings (loss) attributable to common shareholders

Cash flow provided from operating activities

Net earnings (loss) per share (basic and diluted)

Basic weighted average number of

common shares outstanding (millions)

Kinross today reported consolidated net earnings of $6.6 million, or $0.02 per share, for the second

quarter of 2004 compared with a loss of $7.7 million, or $0.02 per share, for the second quarter of

2003. The gold hedge program reduced earnings by $5.5 million, or $0.01 per share, compared with

$0.6 million in the second quarter of 2003. Final deliveries of gold against the hedge contracts were

made during the second quarter.

Mining revenues of $154.9 million in the second quarter of 2004 were slightly lower than the $157.8

million recorded in the same period of 2003 as a result of lower gold sales volumes which were almost

offset by higher gold and silver realized prices of 10% and 36%, respectively. The lower gold sales are

mainly attributable to lower production at Fort Knox, Round Mountain and Kubaka.

Operating costs of $102.6 million in the second quarter of 2004 were reduced by $5.3 million compared

with second quarter 2003 due to lower production and cost reductions from the continuous

improvement program, partially offset by higher energy prices and the impact of the exchange rates on

non-US dollar based operating costs.

The increase in general and administrative costs by $2.5 million to $8.5 million is largely a result of

higher level of business activity, the expensing of stock options, one time merger related expenses and

the impact of the Canadian dollar exchange rate.

Key Operating Highlights

(in United States dollars)

(Unaudited, Canadian GAAP)

Three months ended

June 30,

2003

2004

420,093

$

$

$

$

$

393

381

227

241

338

$

$

$

$

$

460,953

347

345

205

214

310

$

$

$

$

$

Six months ended

June 30,

2003

2004

817,104

401

391

227

241

336

$

$

$

$

$

787,765

350

344

215

223

317

Operating Results

Gold Equivalent Production (000 ounces)

Per ounce data:

Average spot gold price

Average realized gold price

Cash operating costs

Total cash costs

Total production costs

The following table reconciles the production costs per equivalent ounce of gold presented above to the

operating costs presented in the consolidated financial statements.

Kinross Gold Corporation

Second Quarter Press Release

Page 2



(millions except production in ounces and per ounce amounts)

Three months ended Six months ended June

June 30,

30,

2003

2003

2004

2004

$

107.9

$

195.4

102.6

$

197.1

$

(2.4)

(4.5)

(2.2)

(4.4)

(1.0)

(9.1)

2.1

7.8

(5.6)

(5.7)

(1.5)

(3.7)

98.9

$

176.1

$

101.0

$

196.8

$

460,953

787,765

420,093

817,104

214

$

223

$

241

$

241

$

Operating costs per financial statements

Accretion expense

Change in bullion inventory

Operating costs not related to gold production

Total cash costs for per ounce calculation purposes

Gold equivalent production – ounces

Total cash costs per equivalent ounce of gold

The following table compares consolidated production costs per equivalent ounce of attributable gold

production for the second quarter of 2004 and 2003, the first half of 2004 and 2003 and provides

reconciliations of total cash costs to total operating costs as per the financial statements.

Three months ended June 30,

2003

Change

2004

$

$

227

$

14

241

$

5

92

338

$

205

9

214

5

91

310

11%

$

56%

13%

$

0%

1%

9%

$

Six months ended June 30,

2003

Change

2004

227

$

14

241

$

5

90

336

$

215

8

223

5

89

317

6%

75%

8%

0%

1%

6%

(per ounce of gold equivalent)

Cash operating costs

Royalties

Total cash costs

Accretion expense

Depreciation, depletion and amortization

Total production costs

$

Operations

Production and cost summary

Three months ended June 30,

Gold equivalent

production

(ounces)

Six months ended June 30,

Gold equivalent

production

(ounces)

Total Cash Costs

($ / ounce)

Total Cash Costs

($ / ounce)

Fort Knox

Round Mountain

3

Porcupine

4

Kubaka

1, 3

Paracatu

1, 2

La Coipa

1, 2

Crixás

1, 5

Musselwhite

1, 2

New Britannia

Kettle River

Lupin

2

Refugio

Denton-Rawhide

1

1, 2

6

2004

79,007

99,554

53,225

39,121

22,096

32,454

23,440

19,600

7,866

22,362

19,710

1,658

-

420,093

2003

101,425

116,336

59,964

47,576

25,707

32,854

24,103

18,089

9,365

-

25,534

-

-

460,953

2004

257

220

204

275

228

298

122

244

271

243

355

226

-

241

2003

241

167

196

188

181

291

105

225

317

-

409

-

-

214

2004

154,987

194,538

105,092

68,380

46,436

73,003

45,951

37,149

14,573

47,709

24,897

4,389

-

817,104

2003

192,639

180,370

107,544

77,626

42,665

56,777

39,707

27,564

16,825

-

44,318

-

1,730

787,765

2004

274

208

227

295

214

260

125

268

341

235

344

217

-

241

2003

250

176

223

187

175

271

104

257

297

-

410

-

221

223

1.

2.

3.

4.

5.

6.

Production and cost data for 2003 are for five months from February to June.

Production reflects Kinross’ 50% ownership interest.

Production reflects Kinross’ 49% ownership interest.

Production reflects Kinross’ 54.7% ownership interest to February 28, 2003, and its 98.1% interest thereafter.

Production reflects Kinross’ 32% ownership interest

Includes Kinross’ share of Denton-Rawhide and Andacollo production attributable to the Pacific Rim (formerly Dayton) ownership interest.

Kinross Gold Corporation

Second Quarter Press Release

Page 3



Total cash costs are a non-GAAP measure. For further information on this non-GAAP measure, please refer to

the disclosure under the heading Costs and Expenses.

North America

Total cash costs in the first half of 2004 at Kinross’ Canadian mines (Porcupine, New Britannia and

Musselwhite) were higher compared to the same period 2003 as a result of the appreciation of the

Canadian dollar relative to the US dollar. Rising fuel costs also negatively affected total cash costs at

all of Kinross’ sites.

Gold equivalent production at

Fort Knox,

Alaska, was approximately 22% and 20% lower in the second

quarter and first half of 2004, respectively, than the corresponding periods in 2003. The decrease in

production resulted from the suspension of mining at True North and lower mill feed grades due to the

mine sequence at Fort Knox. Mill feed grades are expected to improve in the second half of 2004 due

to improved grade at Fort Knox and the resumption of mining at True North. Although year to date

production is lower than the same period of 2003, it is approximately 7% better than plan and is on

target to meet expectation. Rising fuel and energy costs and lower production contributed to the

increase in total cash costs for the second quarter and first half of 2004. Larger tonnage mining

equipment is to be in place at the mine in the third quarter, which will improve total cash costs and

increase tonnage to the mill.

Attributable gold equivalent production at

Round Mountain

was lower in the second quarter versus the

same period of 2003 as a result of processing lower grade ore than expected on the dedicated and

reusable leach pads. Attributable gold equivalent production for the first half was approximately 8%

higher than the same period in 2004 as a result of more ore being placed on the dedicated leach pads

to offset milling and crushing limitations experienced following the failure of an electrical transformer in

the last half of 2003. Total cash costs for the second quarter and first half of 2004 were higher than

the second quarter and first half of 2003 as a result of increased fuel, energy and reagent prices and

royalty payments due to the improved gold price.

At

Porcupine

gold equivalent production for the second quarter and first half of 2004 was lower than

the corresponding period of 2003 as a result of cessation of mining operations of the Dome

underground which was partially offset by higher grades encountered at the Hoyle underground and

Dome open pit mines. Total cash costs for the second quarter and first half of 2004 were higher

reflecting the impact of higher underground and open pit grades processed as well as the marginal

appreciation of the Canadian dollar versus the US dollar. Operating performance was better than

expected for the quarter with both production and total cash costs being approximately 10% better than

plan. Construction is proceeding well, with the foundations for new leach tanks completed, and the

foundations for the new rod mill poured. The new ore haul road has been cleared, and a rock bed is

being placed starting at the Dome mill and heading out to Pamour.

Increased attributable gold equivalent production at

Musselwhite

in the second quarter and first half of

2004 compared to the same periods is due to increased mill throughput which more than offset lower

than expected grades and recoveries encountered in the second quarter.

At

Kettle River

lower than plan grades and mill tonnage from stockpile contributed to the shortfall in

production and higher than expected cash costs. More challenging ground conditions than expected in

the first quarter and ground support issues negatively impacted year to date production and total cash

costs.

Kinross Gold Corporation

Second Quarter Press Release

Page 4



South America

Lower than anticipated mill throughput and recoveries resulted in decreased attributable production and

an increase in total cash costs at

Paracatu

in the second quarter of 2004 compared to the second

quarter of 2003 as the mine processed harder than expected ore. Attributable production was better

than plan and continues on target to meet full year expectations.

Gold equivalent production and total cash costs at

La Coipa

were essentially unchanged for the

second quarter of 2004 compared with the second quarter of 2003. Gold equivalent production was

higher in the first half of 2004 compared to the same period of 2003 as only two months of production

were accounted for in the first quarter of 2003. The increased production in the second quarter

positively impacted total cash costs for the first half.

Attributable gold production for the second quarter and first half of 2004 at

Crixas

was essentially in

line with 2003 results. The increase in total cash costs for the second quarter and first half of 2004

reflect changes in ore grade and lower plant throughput, which were partially offset by higher recovery

rates.

Russia

Inclement weather delays encountered at

Kubaka

in June adversely affected gold equivalent

production in the second quarter and first half of 2004 compared to the same periods of 2003. The

increase in total cash costs in the second quarter and first half of 2004 compared to the same periods

of 2003 reflect lower ounces processed as well as the impact of higher fuel costs, equipment supplies

and mill consumables, partially offset by lower property taxes. High-grade ore from the Birkachan pit

and increased mill feed in the second half of the 2004 will improve production and total cash costs at

Kubaka. Construction of an all season road allowing Birkachan ore to be trammed to the Kubaka

processing facility is expected to be completed by the end of the third quarter and in use by the fourth

quarter of 2004.

Exploration

Kinross continued to focus exploration activity on its project pipeline of advanced exploration and

development projects. At

Round Mountain,

the Joint Venture approved the first phase of a major two-

year campaign targeting a reserve expansion of the Round Mountain pit, delineating reserves at the

Gold Hill project and exploring for additional shallow oxide resources and high-grade feeder structures.

To mid year 51 holes had been completed on the pit expansion project, with virtually every hole

returning an ore grade intercept. At Gold Hill, a total of 55,445 ft (16,910 metres) of delineation drilling

was completed. A new resource model for Gold Hill is currently being developed. In addition, two new

discoveries were made on the Joint Venture property. First, the presence of high-grade feeder veins

was confirmed in hole GH04-482 returning 0.654 opt over 30 ft at 1060 ft down hole, 3500 feet west of

the proposed Gold Hill pit. The second discovery was made 4,000 ft south of the Gold Hill prospect.

Hole SCH01-15 intersected four separate zones including 80 ft @ 0.010 opt from 295 ft, 45 ft @ 0.017

opt from 525 ft, 130 ft @ 0.040 opt from 635 ft and 105 ft @ 0.030 opt from 795 ft. The zone is open to

the west.

At

Fort Knox,

hole FC-716 drilled in the east-central portion of the pit, to test the extension of

mineralization beneath the current ultimate pit, cut two strong zones of mineralization grading 0.316 opt

over 65 ft followed by 0.273 opt over 35 ft. Follow-up drilling is currently underway. At the

Porcupine

Joint Venture,