Each one in plain English, with the numbers worked through for a shareholder.
8 Aug 2006resource reserve update● Neutral
Kinross filed a Fort Knox (Alaska) technical report dated 31 July 2006, stating the filing is made solely for that purpose, covering the mine as of December 2005. It shows proven and probable reserves of 82,172kt at 0.74 g/t at a US$400 gold price (including a 27,456kt stockpile at 0.46 g/t), plus measured and indicated resources of 48,862kt at 0.60 g/t at US$450. The mine plan supports about seven years of life, with mining from 2006 to 2010 and stockpile processing to 2012. Fort Knox is a wholly owned subsidiary operation and remains in the current portfolio.
Kinross filed a Paracatu mine technical report dated 30 Mar 2006, supporting its 31 Dec 2005 reserve and resource disclosure, prepared by Wesley Hanson (now titled Vice President, Technical Services). The contents show it covers an expansion plan including a new 32 Mtpa mill, but the reserve and cost figures are truncated, so none are given. It updates the Dec 2005 report on the mine that remains in the portfolio.
Kinross filed a Round Mountain (Nevada) technical report dated 30 Mar 2006, supporting its 31 Dec 2005 reserve and resource disclosure. It states Round Mountain is run by a 50-50 joint venture between Kinross and Barrick, with Kinross as operator, and that reserves are stated at a US$400/oz gold price. The visible text shows proven reserves of 125,068 thousand tons at 0.018 oz/ton, but the table is cut off so the totals and ounces are not given. Round Mountain remains in the current portfolio.
Kinross filed a Paracatu mine technical report dated 11 Dec 2005, written by its own Director of Technical Services, Wesley Hanson, solely to provide that report. Its contents list reserve and resource tables as of 1 Nov 2005 and a section on 'key methodology changes' (drill spacing, ore hardness, metallurgical recovery, model optimisation), but the figures are truncated so none can be given. It follows the Dec 2004 and Mar 2005 Paracatu reports; by this point the Rio Tinto 51% purchase (letter of intent Nov 2004) is the backdrop, though this filing does not state Kinross's ownership percentage.
Kinross told Canadian regulators it is replacing its auditor Deloitte & Touche with KPMG for 2005, after asking Deloitte on 7 Nov 2005 not to stand for reappointment. The notice discloses one past disagreement: over the Nov 2004 letter of intent to buy Rio Tinto's 51% of Paracatu, Deloitte held Kinross should test goodwill for impairment, and it was resolved when Kinross recorded a US$143m goodwill impairment in Q3 2004. Deloitte has withdrawn its report on the 2003 accounts, which are being restated. A same-day press release says Kinross has now filed audited 2004 statements with restated 2003 comparatives and restated 2004 quarterlies, and expects 2005 quarterlies by mid-December. The 2003 goodwill/exploration-property figures were adjusted slightly (goodwill down US$5.8m at the Jan 2003 TVX/Echo Bay acquisition date). It also seeks a court order to move the 2005 shareholders' meeting from 21 Dec 2005 to no later than 28 Feb 2006, with a hearing on 13 Dec 2005. The filing's text is truncated, so the effect on 2004 net loss beyond a US$0.2m tax adjustment is not given.
Kinross announced on 1 June 2005 a fourth amendment to its deal to buy Crown Resources, owner of the Buckhorn Mountain gold deposit in Washington State. The end date moves to 31 March 2006, and Crown holders would now get 0.34 Kinross shares per Crown share, up from 0.2911, with the total value of Kinross shares issued held between US$77.5m and US$110m (excluding shares Kinross holds). Kinross will also buy a US$10m Crown convertible debenture, convertible into 5.8m Crown shares. About 16.6m Kinross shares would be issued if all Crown warrants and options are converted. The deal, first agreed 20 November 2003, still needs regulatory approval and a two-thirds vote of Crown shareholders. Tye Burt is named as President and CEO, replacing Robert Buchan in that role in the record. The Crown deal is still open here (the context shows it ultimately closing in Aug 2006).
Kinross filed, in March 2005, corporate documents: articles of amalgamation effective 1 January 2005 merging Kinross Gold Corporation with TVX Gold Inc. (approved by directors 16 December 2004), its By-Law No. 1, the 1 July 2002 Porcupine Joint Venture agreement with Placer Dome (CLA) Limited, and a Paracatu technical report dated 15 March 2005. The amalgamation tidies the group structure after the 2003 TVX combination; the filing does not state a business effect. The articles authorise unlimited common shares and 311,933 convertible preferred shares, and list nine directors including Robert M. Buchan. The Paracatu report text is not visible, so no figures are given. The joint venture agreement is the paper behind the Porcupine partnership with Placer Dome noted earlier.
Kinross filed, in January 2005, a technical report on the Refugio gold project in Chile's Maricunga district, stating the filing is made solely for that purpose. The report is dated December 2003, was prepared by Kinross's own Technical Services staff for Compania Minera Maricunga, and so describes the position about a year earlier. The visible text is only the contents pages, so no reserve figures are given. This is the first appearance of the Chilean Maricunga operation in this record.
Kinross filed, in December 2004, a technical report dated 25 November 2004 on its 'Expansion Project III' at the Paracatu mine in Brazil, stating the filing is made solely for that purpose. It was written by Kinross's own Director of Technical Services, Wesley Hanson. The visible text is only the contents pages, so no reserve, cost or capital figures can be given. This follows the July 2004 report on Paracatu (49% owned, 20Mt a year with a 30Mt a year expansion under study) and updates the picture of the mine that remains in the portfolio.
Kinross reported buying 1,195,900 shares of Anatolia Minerals Development on the Toronto Stock Exchange on 14 July 2004 for about Cdn.$1.483 million, taking its holding to 5,195,900 shares, about 12.7% of Anatolia (the press release says 12.67%, the formal report says 12.76%). Kinross says the shares are held for investment and it may increase or decrease its holding; no takeover is announced.
Kinross filed, in July 2004, an independent technical report by SRK (dated April 2003, data as of December 2002) on the Porcupine Joint Venture in Ontario, stating the filing is made solely for that purpose. The visible text covers the Pamour, Hoyle Pond and Dome mines but the reserve and resource figures are truncated, so none are given here. The report is dated well before the filing, so it describes the position as of end-2002, not current.
Kinross filed, in July 2004, a technical report (dated 21 March 2003, data as of December 2002) on the Round Mountain gold mine in Nevada, stating the filing is made solely for that purpose. The report was written by Round Mountain's own staff, who state they are not independent of Kinross. The visible text carries no reserve figures (the text is truncated before the tables); Round Mountain remains in the current portfolio.
Kinross filed, in July 2004, an independent technical report (dated April 2003, data as of December 2002) on the Morro do Ouro mine near Paracatu, Brazil, stating the filing is made solely for that purpose. The report says Kinross owned 49% of the mine and shows proven and probable reserves of 369.1Mt at 0.43 g/t (5,102koz) at a US$300 gold price, with a possible expansion from 20Mt to 30Mt a year under study. This is the Paracatu mine that remains in Kinross's current portfolio.
Kinross filed, in July 2004, a technical report (dated April 2003, data as of December 2002) on the Fort Knox and True North mines in Alaska, stating the filing is made solely for that purpose. It shows Fort Knox proven and probable reserves of 90.7Mt at 0.81 g/t and True North 6.5Mt at 1.47 g/t, at a US$300 gold price, feeding one mill. Fort Knox remains in the current portfolio.
Kinross filed, in July 2004, a technical report (dated February/April 2003, data as of December 2002) on the Kubaka project in Russia, stating the filing is made solely for that purpose. It says Kinross owned 54.7% of the Omolon joint venture at end-2002 and was negotiating to buy the other 45.3%. The open pit was exhausted after six years, leaving stockpiles and three small underground projects, with reserves of 198koz of stockpiles plus about 44koz proven and 44koz probable underground, and a further 766koz of inferred resources at Birkichan and Tsokol.
Kinross filed, in July 2004, an independent technical report (dated April 2003, data as of December 2002) on the Crixas mine in Brazil, stating the filing is made solely to provide that report. It shows Kinross held 50% of Crixas via the TVX acquisition in early 2003 and reported reserves of 3,836kt at 7.76 g/t, about 957koz. This is the Crixas 50% that Kinross later sold to AngloGold Ashanti in 2012 for US$220m.
Kinross filed its August 2003 prospectus papers for a sale of 20,000,000 new common shares at Cdn.$9.26 each (Cdn.$185,200,000 in total), underwritten by CIBC World Markets, Scotia Capital and RBC Dominion Securities, with an option for 3,000,000 more shares. A material change report listed in the filing says the proceeds are intended to redeem its 5.5% convertible unsecured subordinated debentures, which would swap debt for more shares outstanding. This follows the early-2003 combination of TVX, Echo Bay and Kinross listed in the filing's documents.
