contrast iconcontrast icon search icon

Events Calendar

Gold Forum Americas
Colorado Springs

Kinross Gold Corporation announced today the unaudited results for the three and nine months ended September 30, 2004

October 28, 2004

Toronto, Ontario - Kinross Gold Corporation (TSX-K; NYSE-KGC) ("Kinross" or the "Company") announced today the unaudited results for the three and nine months ended September 30, 2004, as follows

(US dollars, unaudited)

Earnings of $9.4 million, or $0.03 per share, for the third quarter and $29.2 million, or $0.08 per share, for the first nine months of 2004.

Cash flow provided from operating activities of $62.5 million.

Cash and short-term investments increased $26.2 million to $213.9 million.

Production of 412,196 gold equivalent ounces at total cash costs 1 of $239 per ounce. Annual production target of approximately 1.7 million gold equivalent ounces at total cash costs in the range of $235 to $240.

Capital expenditures of $46.9 million in the third quarter, $109.7 million in the first nine months. Total expenditures expected to be $167.9 million for the year.

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 below 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 in the Company's filings.

Scott Caldwell, Executive Vice President & Chief Operating Officer said, "Operating costs are coming in a little higher than we expected at the start of the year, primarily due to higher fuel costs and higher costs for grinding media and reagents. Through our continuous improvement program, we are always looking for ways to reduce costs and reduce our use of materials in our processes. We are also focusing on putting the buying power of all our operations together in order to get better pricing on the items we use. As a result of these cost pressures, total cash costs are expected to be in the $235 - $240 range for 2004."

Cautionary Statement on Forward-Looking Information
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, 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.