Toronto, Ontario - Kinross Gold Corporation (TSX-K;
NYSE- KGC) ("Kinross") announces that during the third quarter
it:
changed the methodology by which it allocates the goodwill
amongst its assets; and
recognized a $143.0 million reduction of the goodwill associated
with its Paracatu mine in Brazil, creating a net loss for the
quarter of ($133.6) million as opposed to the previously reported
earnings of $9.4 million
Cash flow provided from operating activities of $62.5 million
remains unchanged
When Kinross merged with TVX Gold Inc. ("TVX") and Echo Bay Mines
Ltd. ("Echo Bay") on January 31, 2003 the transaction was accounted
for as a purchase of the assets of TVX and Echo Bay. The purchase
price had to be then allocated to the assets acquired. A
calculation of the "hard asset" value was done for each property
and that amount was then recorded as the tangible net book value
("book value") for those assets. The total purchase price exceeded
the book value by $918.0 million and this was recorded on the
balance sheet as goodwill.
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. All figures are in United States Dollars unless otherwise stated.