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Place de cotation: TSX (K)
Kinross Gold Corporation
is the fourth largest North American gold producer with strong production
of just under 1 million ounces per year. Low total cash costs of approximately
US$200 per ounce, added with a strong balance sheet of US$94 million of
cash and US$78.3 million of working capital (First Quarter 2002), make
the company financially strong in this turbulent gold market. Kinross has
reserves and resources totaling over 20 million ounces of gold to ensure
steady growth in the future and an excellent upside potential as the gold
price improves.
Kinross
Gold achieves record Fourth Quarter and Full-year results Full-year revenue
increases to $906 million and earnings per share to $0.47, production ahead
of target and operating cash flow more than doubles PDF
Toronto,
Ontario, February 21, 2007 – Kinross Gold Corporation (TSX-K; NYSE-KGC)
(“Kinross”, “Kinross Gold” or the “Company”), today announced its unaudited
results for the fourth quarter and year ended December 31, 2006. (This
news release contains forward looking information that is subject to risk
factors and assumptions as set out in our Cautionary Statement on Forward-Looking
Information located on page 11 of this news release. All dollar amounts
in this release are expressed in U.S. dollars, unless otherwise noted)
Highlights
•
Gold equivalent production was 362,028 ounces in the fourth quarter of
2006 and 1,476,329 ounces for the full year, both above target.
•
Revenue was $231.4 million in the fourth quarter, a 22 percent increase
over the same period last year, and the average gold price realized was
$615 per ounce of gold sold. Full-year revenue was a record $905.6 million,
a 25 percent increase over the same period last year, and the average gold
price realized was $604 per ounce of gold sold.
•
Cost of sales per ounce1 was $317 in the fourth quarter on sales of 375,684
gold equivalent ounces, and $319 for the full-year on sales of 1,510,836
gold equivalent ounces.
•
Net earnings for the fourth quarter were $41.0 million or $0.11 per share
(diluted), compared to a net loss of $154.3 million or $0.45 per share
in the same period last year. Net earnings for the full-year were a record
$165.8 million or $0.47 per share (diluted), compared with a net loss of
$216.0 million in the same period last year. Net earnings in the fourth
quarter were reduced by $0.01 per share (diluted) as a result of the impairment
of certain long-term investments, partially offset by a gain on asset sales.
•
Cash flow from operating activities was $91.2 million in the fourth quarter
and $292.0 million for the full-year compared to $23.8 million and $133.7
million for the comparable periods in 2005. The cash position was $154.1
million at December 31, 2006 compared to $97.6 million at December 31,
2005 and total debt was $89.9 million at December 31, 2006 compared to
$159.3 million at December 31, 2005. • Capital expenditures were $65.3
million in the fourth quarter and $202.9 million for the full-year.
•
Proven and Probable Mineral Reserves at December 31, 2006 increased by
3.1 million ounces of gold, net of 2006 production, to 27.9 million ounces,
a 13 percent increase over year end 2005. These amounts do not include
the effects of the Bema acquisition.
•
Production2 for 2007 is expected to be approximately 1.5 million gold equivalent
ounces at a cost of sales per ounce1,2 in the range of $320 to $330. Beyond
2007, gold equivalent production2 is expected to grow to 1.6 to 1.7 million
ounces in 2008 and 1.8 to 1.9 million ounces in 2009. These amounts do
not include the effects of the Bema acquisition.
•
The Bema Gold acquisition will close on February 27, 2007, subject to customary
closing conditions.
KINROSS
AND BEMA ANNOUNCE ACQUISITION CLOSING DATE OF FEBRUARY 27, 2007
TORONTO,
Ontario and VANCOUVER, British Columbia -
February 20, 2007 – Kinross Gold Corporation (“Kinross”) (TSX: K, NYSE:
KGC) and Bema Gold Corporation (“Bema”) (TSX/NYSE: BGO, AIM: BAU) announced
today that the closing of the acquisition of Bema has been set for February
27, 2007. Bema shareholders voted 91 per cent in favour of the transaction
on January 30, 2007, and the transaction was approved by the Ontario Superior
Court of Justice on January 31, 2007. In connection with anticipated completion
of the transaction, Kinross has waived the condition of closing relating
to the reclassification and the securing of a long term lease of Bema’s
Kupol lands, having become satisfied that the remaining administrative
steps to complete this process are well advanced and supported by the Russian
authorities. All other regulatory approvals required for the completion
of the transaction have been obtained, and subject to the remaining customary
conditions of closing, the transaction will be completed on February 27,
2007. It is expected that the common shares of Kinross issuable in connection
with the transaction will be listed and posted for trading on the Toronto
Stock Exchange and the New York Stock Exchange on or about February 27,
2007 and that Bema common shares will be delisted from the Toronto Stock
Exchange and the New York Stock Exchange on or about the close of business
on February 28, 2007 and February 27, 2007, respectively. It is anticipated
that the Bema warrants currently listed on the Toronto Stock Exchange will
commence trading under “Kinross” at the opening of business March 1, 2007.
Kinross
Sells Equity Interest in Katanga Mining Limited Toronto,
Ontario - Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross”) announced
today that it has sold its 5,751,500 shares in Katanga Mining Limited for
proceeds of approximately CDN$35.9 million (CDN$6.25 per share) through
a private placement.
Kinross
Gold announces 45 percent revenue growth and record earnings of $65.6 million
in second quarter Production on target and operating cash flow up 210 percent
$470 million Paracatu expansion enhances future gold production
Toronto,
Ontario – Kinross Gold Corporation (TSX-K; NYSE-KGC) (“Kinross”, “Kinross
Gold” or the “Company”), today announced its unaudited results for the
three and six months ended June 30, 2006. (All dollar amounts in this press
release are expressed in U.S. dollars, unless otherwise noted) Second Quarter
Highlights • Kinross produced 385,514 gold equivalent ounces in the second
quarter of 2006. The Company remains on track to produce approximately
1.44 million gold equivalent ounces for the year. • The Company’s revenue
was $252.3 million in the second quarter, a 45 percent increase over the
same period last year while realizing $625 per ounce of gold sold, an increase
of 48 percent over the same period last year. The cost of sales1 of $311
per ounce on sales of 403,507 gold equivalent ounces remains on track to
meet the forecast of $305 - $315 per ounce for the full year. • Kinross
achieved net earnings of $65.6 million, or $0.19 per share, compared with
a net loss of $16.4 million in the same period last year. These results
include a $2.9 million pre-tax gain on disposal of assets in the second
quarter of 2006, contributing less than $0.01 per share. • Kinross’ cash
flow from operating activities in the second quarter was $94.9 million,
a 210 percent increase compared to the $30.6 million generated in the second
quarter of 2005. The cash position rose to $149.0 million as at June 30,
2006 compared with $84.1 million at March 31, 2006. • Kinross has further
strengthened its management team with the addition of James Toccacelli
as Senior Vice President, Communications. Updates • Kinross’ Board of Directors
has approved an investment estimated at $470 million in its wholly owned
Brazilian subsidiary’s Paracatu expansion project in Brazil, which is expected
to start up in 2008. Average annual production at Paracatu is expected
to be approximately 557,000 ounces of gold per year from 2009 through 2013
at an average cost of sales of approximately $230 per ounce. Proven and
Probable Mineral Reserves as at December 31, 2005 were 15.2 million gold
ounces.2 • As previously disclosed, the Company’s registration statement
in respect of the Crown transaction was declared effective as of July 28,
2006 and a proxy statement/prospectus has been mailed to Crown shareholders.
Crown will hold a shareholders meeting on August 31, 2006, where its shareholders
will vote on the transaction. • As previously disclosed, Kinross undertook
various divestitures of non-core assets consistent with our four-point
plan including the George/Goose Lake property, the Aquarius project, the
Lupin site and the Blanket mine. 1. Cost of sales per ounce is calculated
by dividing cost of sales as per the financial statements by the number
of gold equivalent ounces sold. 2. This news release contains forward looking
information that is subject to risk factors and assumptions set out in
the project summary on pages 10 & 11 and the cautionary note on page
12 of this news release. |