Kinross Provides Outlook for 2008 and 2009

TORONTO, ON - Kinross Gold Corporation reported its outlook for 2008 and 2009 and a progress report on its three development projects scheduled to start up this year.
"This will be an important year of transition at Kinross. In 2008, we expect to bring all three of our new, lower-cost development projects into production on schedule, increasing our gold equivalent production by 20 per cent this year and setting the stage for expected production of 2.5 to 2.6 million ounces in 2009, a 60-per-cent increase over 2007 production," said President and CEO Tye Burt.
In 2007, Kinross produced approximately 1.6 million gold equivalent ounces, in line with its previously-stated guidance for the full year. Based on a preliminary review of fourth quarter 2007 results, including the impact of higher royalty costs as a result of a higher gold price, and higher energy costs, Kinross currently expects its full-year average cost of sales for 2007 to be at the high end of, or slightly above, its previously stated cost of sales guidance range of $355 to $365 per gold equivalent ounce. The Company will provide a final statement of its 2007 production and cost of sales as part of its fourth quarter and year-end 2007 financial results, which will be issued on February 21, 2008. The Company will also issue an updated mineral reserve statement at that time.
In 2008, Kinross expects to produce approximately 1.9 - 2.0 million gold equivalent ounces, an increase of approximately 20 per cent from 2007 production levels, and 2.5 - 2.6 million gold equivalent ounces in 2009. These forecasts reflect the positive impact of new production from the Company's three development projects at Paracatu (Brazil), Kupol (Russian Federation), and Buckhorn (USA), all of which are expected to be commissioned during 2008, as well as reduced production resulting from the asset swap with Goldcorp and expected slight reductions in production at Fort Knox and Round Mountain due to lower grades.
Cost of sales per gold equivalent ounce is expected to average between $365 and $375 for the full year 2008. By the fourth quarter of 2008, the average cost of sales is expected to decrease to between $325 and $335 per gold equivalent ounce. Costs are expected to decrease progressively over the course of the year as the Paracatu, Kupol, and Buckhorn projects are commissioned and total production increases.
"We expect our costs to decrease significantly over the course of 2008, especially in the fourth quarter, as the new projects reach full production. In 2009, we expect to reap the full benefit of the transformation in our production and cost profile as our three new projects operate at full capacity for the entire year," said Burt.
The company's address is 40 King Street West, 52nd Floor, Toronto, ON M5H 3Y2, (416) 365-5123, fax: (416) 363-6622, email: [email protected].