TORONTO, Feb. 3 /CNW/ - 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.
%SEDAR: 00002968E