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Kinross Announces a Restatement of Prior Financial Statements and Provides Status Update on Late Filing of Financial Statements
Kinross Announces a Restatement of Prior Financial Statements and Provides Status Update on Late Filing of Financial Statements.
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\n\nTORONTO, Dec. 23 /CNW/ - Kinross Gold Corporation (\"Kinross\" or the\n\"Company\") (TSX-K; NYSE-KGC). Pursuant to the alternative information\nguidelines of the Ontario Securities Commission (\"OSC\") Policy 57-603 and\nCanadian Securities Administrators Staff Notice 57-301, Kinross is providing a\nnotice to the market regarding a restatement of its prior financial statements\nand an update on the process relating to the preparation and filing of its\nfinancial statements and related matters, until such time as Kinross is\ncurrent with its filing obligations under Canadian securities laws.\nDuring the preparation of its unaudited interim financial statements for\n2005, the Company and its new auditors became aware that Kinross had not fully\naccounted for the impact of foreign currency exchange rates on future tax\nliabilities relating to the purchase of certain assets acquired in the\nacquisition of TVX Gold and Echo Bay in January 2003. The Company intends to\nrestate its financial statements for 2003 and 2004 to fully account for these\nchanges. Previously issued financial statements for the years ended 2003 and\n2004 and interim periods and the related auditors' reports should no longer be\nrelied upon. The Company estimates that the impact of the restatement on its\npreviously reported net losses for 2003 and 2004 will be to increase the\nlosses by approximately $25 million and $15 million, respectively. This non-\ncash adjustment will have no impact on operating cash flows or cash balances\npreviously reported. The changes to the future tax liabilities are primarily\nattributable to the Brazilian operations. The Brazilian real has strengthened\nby approximately 40% from January 2003 to September 2005 against the U.S.\ndollar. The translation to U.S. dollars of the Company's future tax\nliabilities will also have a negative impact on 2005 results.\nKinross is currently working to finalize and file its quarterly financial\nstatements for 2005 and other required regulatory filings in order to bring\nthe Company current. This will be done when the restated 2003 and 2004\nfinancial statements are completed which at this time the Company believes\nwill be January 2006.\nAn application was made to the Ontario Superior Court of Justice to\nobtain an extension to the previous order, which required Kinross to hold its\nsh...