Toronto, Ontario - Kinross Gold Corporation
("Kinross" or the "Company") (TSX-K; NYSE-KGC). Pursuant to the
alternative information guidelines of the Ontario Securities
Commission ("OSC") Policy 57-603 and Canadian Securities
Administrators Staff Notice 57-301, Kinross is providing a notice
to the market regarding a restatement of its prior financial
statements and an update on the process relating to the preparation
and filing of its financial statements and related matters, until
such time as Kinross is current with its filing obligations under
Canadian securities laws.
During its preparation of the interim financial statements for
2005, the Company became aware that Kinross had not fully accounted
for the impact of foreign currency exchange rates on future
deferred tax liabilities relating to the purchase of certain assets
acquired in the acquisition of TVX Gold and Echo Bay in January,
2003. This meant that financial statements for the years ended
December 31, 2003 and 2004 and their respective interim periods
would need to be restated to take into account these adjustments.
As a result of the restatement, these liabilities have been
adjusted for changes in currency exchange rates between the US
dollar and the currency of the country in which the future tax
liability arose. These adjustments have no impact on total assets,
cash balances or operating cash flow. The net impact of the foreign
exchange loss and income and mining tax recovery, as previously
filed on November 30, 2005, will reduce earnings by approximately
$27 million for 2003 and $7 million for 2004. The restated net loss
for 2003 and 2004 will be $437.7 million and $63.1 million,
respectively.
Kinross anticipates releasing its restated financial statements
for the financial years ended December 31, 2003 and 2004 by the end
of next week. The Company will file its financial statements for
the first three quarters of 2005 shortly thereafter.
We are issuing bi-weekly updates as to the status and timing
which can be viewed on our website at www.kinross.com. The next
update is scheduled for the week of February 13th, 2006.