<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>kin6kex99b.txt
<DESCRIPTION>EXHIBIT 99B
<TEXT>


                                                                     EXHIBIT 99B


Management's Discussion and Analysis

Management's Discussion and Analysis of Financial Condition and Results of
Operations

All results are expressed in United States dollars unless otherwise stated.

THE COMPANY Kinross Gold Corporation (the "Company") is engaged in the mining
and processing of gold and silver ore and the exploration for and acquisition of
gold-bearing properties, principally in the Americas, Russia, Australia and
Africa. The Company's products are gold and silver produced in the form of dore
that is shipped to refineries for final processing.

OVERVIEW The Company's share of attributable production was 944,803 gold
equivalent ounces in 2001, a nominal increase when compared to 2000 production
of 943,798 ounces and a decrease of 7% when compared to 1999 production of
1,012,408 ounces. Average total cash costs per gold equivalent ounce decreased
by 4%, to $193 in 2001, compared to $202 in 2000 and $196 in 1999. Cash flow
provided from operating activities in 2001 was $74.5 million, compared to $47.8
million in 2000 and $69.5 million in 1999. Cash flow provided from operating
activities increased in 2001 due to lower production costs, lower exploration
spending, and an increase in the proceeds on restructuring of the gold forward
sales contracts when compared to 2000. In 2001, $16.1 million of write-downs of
property plant and equipment of which the largest component was an $11.8 million
write-down of the Blanket mine due to the continued uncertainty in Zimbabwe,
resulted in a $36.9 million, or $0.14 per share net loss for the year. As a
result of the continuing uncertainty in Zimbabwe and the difficulty with which
(the "Company") had in exercising control over its subsidiary, the Company
discontinued the consolidation of the Zimbabwean subsidiary, effective December
31, 2001. The 2001 loss compares to a $126.1 million, or $0.45 per share loss in
2000 and a $240.7 million, or $0.83 per share net loss in 1999. The losses in
2000 and 1999 included write-downs of $85.2 million and 189.5 million,
respectively.

BUSINESS ACQUISITIONS The Company acquired the balance of the Goose/George Lake
exploration property in Nunavut by issuing from treasury 4,000,000 common shares
valued at $3.8 million. In addition to this acquisition, (the "Company") focused
on completing the permitting of the True North property, one of the satellite
deposits near the Fort Knox processing plant. The permitting process was
completed in January 2001 and (the "Company") completed the pre-production
capital expenditures during 2001. Commercial production for this additional
deposit was achieved early in the second quarter of 2001.

REVENUES

GOLD AND SILVER SALES The Company's primary source of revenue is from the sale
of its gold production. The Company sold 907,149 ounces of gold in 2001,
compared to 897,428 ounces in 2000 and 1,006,453 ounces in 1999. Revenue from
gold and silver sales was $270.1 million in 2001 compared to $271.0 million in
2000 and $304.0 million in 1999. Revenue from gold and silver sales in 2001 was
similar to the 2000 results. In 2001, (the "Company") realized $296 per ounce of
gold, compared to $298 in 2000 and $300 in 1999. The average spot price for gold
was $271 per ounce in 2001 compared to $279 in 2000 and $279 in 1999.

<TABLE>
<CAPTION>
Summary Information                                           2001              2000             1999
<S>                                                         <C>               <C>             <C>
Attributable gold equivalent production - ounces            944,803           943,798         1,012,408
Attributable gold production - ounces                       937,852           932,423         1,006,453
Gold sales - ounces (excluding equity accounted ounces)     907,149           897,428         1,006,453
Gold revenue (millions)                                    $  268.8          $  267.8        $    302.3
Average realized gold price per ounce                      $    296          $    298        $      300
Average spot gold price per ounce                          $    271          $    279        $      279
</TABLE>

Included in gold equivalent production is silver production converted to gold
production using a ratio of the average spot market prices for the three
comparative years. The resulting ratios are 62.00:1 in 2001, 56.33:1 in 2000,
and 53.40:1 in 1999.

INTEREST AND OTHER INCOME The Company invests its surplus cash in high quality,
interest-bearing cash equivalents. Interest and other income during 2001 totaled
$9.3 million compared to $14.2 million in 2000 and $15.5 million in 1999.
Interest and other income in 2001 was comprised of interest on cash deposits of
$4.9 million, joint venture management fees of $2.2 million, insurance
settlements of $1.3 million and $0.9 million of other items. This compares to
2000 interest on cash deposits of $9.1 million, joint venture management fees of
$2.6 million and insurance settlements of $2.5 million. And to 1999 interest on
cash deposits of $10.6 million, joint venture management fees of $2.9 million,
insurance settlements of $2.0 million. Interest income decreased in 2001 due to
substantially lower interest rates, while insurance settlements decreased since
the majority of the historic Refugio claims were settled in 2000.

MARK-TO-MARKET GAIN (LOSS) ON WRITTEN CALL OPTIONS The Company retroactively
adopted the change in the Canadian Institute of Chartered Accountants
recommendations for the accounting for written call options in 2000. The
premiums received at the inception of written call options are recorded as a
liability. Changes in the fair value of the liability are recognized in
earnings. The change in fair value of the written call options resulted in a
mark to market gain of $3.5 million in 2001. This compared to a gain of $4.1
million in 2000 and a loss of $2.5 million during 1999. For details on the
written call options outstanding at December 31, 2001, see Note 8 to the
Consolidated Financial Statements.

COSTS AND EXPENSES

OPERATING COSTS Gold equivalent production in 2001, (excluding equity accounted
ounces) increased by 1% when compared to 2000 production, while operating costs
decreased by 5%. Consolidated operating costs were $180.7 million in 2001
compared to $189.6 million in 2000 and $209.4 million in 1999. Total cash costs
per ounce of gold equivalent were $193 in 2001 compared to $202 in 2000 and $196
in 1999. Total cash costs per ounce of gold equivalent improved dramatically at
the Hoyle Pond mine and the Refugio mine, while the Blanket mine in Zimbabwe
experienced higher unit costs due to hyperinflation primarily as a result of
certain monetary policies adopted by the government of this African country.

<TABLE>
<CAPTION>
Consolidated Production Costs per Equivalent Ounce of Attributable Gold Production
For the year ended December 31,                                                          2001        2000          1999
<S>                                                                                     <C>          <C>          <C>
Cash operating costs                                                                    $ 186       $ 193        $ 186
Royalties                                                                                   7           9           10
Total cash costs                                                                          193         202          196
Reclamation                                                                                 2           3            3
Depreciation, depletion and amortization                                                   94          99          110
Total production costs                                                                  $ 289       $ 304        $ 309
</TABLE>

The following table provides a reconciliation of operating costs per the
consolidated financial statements to operating costs for per ounce calculation
of total cash costs pursuant to the Gold Institute guidelines.

<TABLE>
<CAPTION>
Reconciliation of Total Cash Costs per Equivalent Ounce of Gold to Consolidated
Financial Statements
For the year ended December 31,
(millions except production in ounces and per ounce amounts)                             2001         2000            1999
<S>                                                                                    <C>          <C>          <C>
Operating costs per financial statements                                               $ 180.7      $ 189.6      $    209.4
Dayton operating costs                                                                     7.4          9.4              -
Site restoration cost accruals                                                            (1.9)        (2.7)           (3.1)
Severance costs                                                                             -            -             (3.5)
Contract termination costs                                                                  -            -             (1.5)
Other                                                                                     (3.7)        (5.4)           (2.4)
Operating costs for per ounce calculation purposes                                     $ 182.5      $ 190.9      $    198.9
Gold equivalent production - ounces                                                    944,803      943,798       1,012,408
Total cash costs per equivalent ounce of gold                                          $   193      $   202      $      196
</TABLE>

Total cash costs per ounce of gold equivalent decreased by 4% during 2001.
Details of the individual mine performance are discussed in the following
sections.

<TABLE>
<CAPTION>
Production Data Attributable Gold Equivalent Production - Ounces
For the year ended December 31,                                          2001           2000            1999
<S>                                                                      <C>            <C>           <C>
Primary operations:
         Fort Knox                                                       411,221        362,959         351,120
         Hoyle Pond                                                      156,581        140,441         136,709
         Kubaka                                                          237,162        244,641         254,625
         Refugio                                                          67,211         85,184          90,008
         Blanket                                                          39,592         34,571          37,755
                                                                         911,767        867,796         870,217
Other operations:
         Denton-Rawhide                                                   17,713         29,361          62,792
         Andacollo                                                        11,718         21,030               -
         Hayden Hill                                                       1,887          9,582          17,020
         Guanaco                                                           1,718         16,029          23,690
         Macassa                                                               -              -          38,689
                                                                          33,036         76,002         142,191
Total gold equivalent ounces                                             944,803        943,798       1,012,408
</TABLE>

<TABLE>
<CAPTION>
Total Cash Costs per Ounce of Attributable Gold Equivalent Production
For the year ended December 31,
(dollars per equivalent ounce of gold)                                      2001       2000       1999
<S>                                                                         <C>        <C>        <C>
Primary operations:
         Fort Knox                                                           207        203        194
         Hoyle Pond                                                          182        209        210
         Kubaka                                                              140        139        143
         Refugio                                                             242        300        277
         Blanket                                                             279        236        173
                                                                             191        197        189
Other operations:
         Denton-Rawhide                                                      248        243        243
         Andacollo                                                           259        289          -
         Hayden Hill                                                         277        240        194
         Guanaco                                                             436        278        198
         Macassa                                                               -          -        283
                                                                             263        263        241
                                                                             193        202        196
</TABLE>

PRIMARY OPERATIONS

FORT KNOX MINE The Company acquired the Fort Knox open pit mine, located near
Fairbanks, Alaska in 1998. Gold equivalent production in 2001 was 411,221 ounces
compared to 362,959 in 2000 and 351,120 in 1999. In 2001, total cash costs were
$207 per ounce of gold equivalent compared to $203 in 2000 and $194 in 1999. The
Fort Knox mine 2001 business plan called for 450,000 ounces of gold equivalent
production at total cash costs of $196 per ounce of gold equivalent. The plan
was predicated on production from the Fort Knox open pit and supplemental feed
from the recently acquired True North deposit early in 2001.

For 2001, cash production costs were $2.8 million lower than planned.
Unfortunately, the reduced spending did not compensate for the delays in
achieving commercial production at the True North open pit, due to a prolonged
permitting process, unacceptable performance of the haulage contractor during
the third quarter of 2001 and lower than anticipated ore grade in the upper
benches at the True North open pit during the third quarter of 2001. The fourth
quarter of 2001 results were on plan as the Company acquired the haulage fleet
and is managing the ore haulage operations from the True North open pit to the
Fort Knox mill. In addition, the grade of the ore mined during the fourth
quarter of 2001 at True North open pit was as planned. Estimated gold equivalent
production for 2002 is 440,000 ounces at total cash costs of approximately $210
per ounce.

Capital expenditures at the Fort Knox operations in 2001 were $20.2 million
compared to $17.6 million during 2000 and $9.5 million during 1999. The majority
of capital expenditures for 2001 were required to purchase nine haulage trucks
for the True North ore haulage, complete the access road from the Fort Knox mill
to the True North open pit and for site infrastructure at the True North open
pit. Planned capital expenditures for 2002 are estimated to be $16.0 million.

HOYLE POND MINE The Company acquired the Hoyle Pond underground mine, located in
Timmins, Ontario, in 1993. Gold equivalent production in 2001 was 156,581 ounces
compared to 140,441 ounces in 2000 and 136,709 ounces in 1999. In 2001, total
cash costs were $182 per ounce of gold equivalent compared to $209 in 2000 and
$210 in 1999. Cash production costs were on plan during 2001, 14% lower than in
2000. This reduced spending combined with higher gold equivalent production due
to a 10% increase in the grade of ore processed, resulted in lower per ounce
total cash costs. Estimated gold equivalent production for 2002 is 145,000
ounces at total cash costs of approximately $193 per ounce.

Capital expenditures at the Hoyle Pond operations in 2001 were $7.9 million
compared to $13.8 million during 2000 and $18.6 million during 1999. The
majority of capital expenditures for 2001 were required to further advance the
1060 ramp, underground development drilling and underground fleet replacements.
Planned capital expenditures for 2002 are estimated to be $8.6 million.

KUBAKA MINE The Company acquired its 54.7% ownership interest in the Kubaka open
pit mine, located in the Magadan Oblast in far eastern Russia in three
transactions during 1998 and 1999. The Company's share of gold equivalent
production in 2001 was 237,162 ounces compared to 244,641 in 2000 and 254,625 in
1999. In 2001, total cash costs were $140 per gold equivalent ounce compared to
$139 in 2000 and $143 in 1999. The Kubaka mine continues to perform
exceptionally well, having achieved the lowest total cash costs per ounce of the
Company's primary operations. Cash production costs were on plan during 2001,
unchanged from 2000. Mill throughput increased by 4%, which helped to compensate
for the 6% decrease in the grade of the ore processed. Estimated gold equivalent
production for the Company's ownership interest in 2002 is 230,000 ounces at
total cash costs of approximately $130 per ounce.

The Company's share of capital expenditures at the Kubaka operations in 2001
were $0.4 million compared to $0.3 million during 2000 and $0.9 million during
1999. The majority of capital expenditures for 2001 were required to extend the
gravel runway at the mine airstrip and to purchase one additional diamond drill
for exploration activities at the nearby Birkachan exploration project. The
Company's share of planned capital expenditures for 2002 are estimated to be
$1.5 million.

In 1999, the Company began an extensive drilling program looking for alternative
mill feed for the Kubaka operations beyond the then known mine life. In 2000,
these activities identified the Birkachan project located 28 kilometers north of
the Kubaka processing plant. Additional exploration drilling continued during
2001. Current plans for 2002 are to continue the exploration activities at
Birkachan, and commence the process of converting the current exploration
license to a mining license. The Company will focus its exploration activities
to identify resources that can be quickly converted into reserves and provide
mill tonnage for the Kubaka processing plant in 2003 or 2004.

REFUGIO MINE The Company acquired a 50% interest in the Refugio open pit mine,
located in Chile in 1998. The Company's share of gold equivalent production in
2001 was 67,211 ounces compared to 85,184 ounces in 2000 and 90,008 in 1999. In
2001, total cash costs were $242 per ounce of gold equivalent compared to $300
in 2000 and $277 in 1999. In late 2000, in light of the continued weakness in
spot gold prices a decision was made to suspend mining activities and place the
operations on care and maintenance in June of 2001. The open pit mining
activities were suspended on June 1, 2001 as the last mined ore was placed on
the leach pad and the Refugio operations commenced residual leaching of the two
leach pads. All of the leased mining equipment was disposed of in 2001,
eliminating any further financial obligations under the leases. Heap leaching
operations continue and the balance of the Chilean summer will be spent
reviewing the water balance and the estimated gold inventory on the leach pad to
determine the best time to suspend residual leaching. The Company estimates its
share of residual production of approximately 9,000 gold equivalent ounces
during the first half of 2002. After that, the Refugio mine will remain on care
and maintenance until spot gold prices improve substantially.

BLANKET MINE The Blanket mine, located in Zimbabwe, was acquired in 1993. Gold
equivalent production in 2001 was 39,592 ounces compared to 34,571 ounces in
2000 and 37,755 ounces in 1999. Total cash costs were $279 per ounce of gold
equivalent in 2001, compared to $236 in 2000 and $173 in 1999. Gold production
increased in 2001 as milling of historic tailings that were purchased, subject
to a tonnage royalty, from a nearby producer commenced. Inflationary pressures
within Zimbabwe reached extreme levels due to certain monetary policies adopted
by the government making the sourcing of foreign materials and supplies
increasingly more difficult. This has also been compounded by increases in
violence and civil unrest throughout the fourth quarter, a trend that is
expected to increase as the March elections draw closer. With only 20% of gold
sales payable in U.S. dollars and in excess of 30% of consumables imported and
denominated in currencies other than the Zimbabwe dollar, the future ability of
this operation to service debt obligations to the Company remains questionable.
Future dividend payments under the current tight monetary policies also appear
unlikely. Throughout this challenging time the mine continues to operate, and
estimates 2002 production of 39,000 gold equivalent ounces at total cash costs
similar to those incurred in 2001. The Company believes that conditions will
improve in Zimbabwe, but, in light of the current economic and political
environment, the Company has discontinued the consolidation of its investment in
Zimbabwe and has fully written it down. This write-down during the fourth
quarter of 2001 totaled $11.8 million.

OTHER OPERATIONS In addition to its primary operating mines, the Company has
ther locations in various stages of residual production or closure. Only two of
these operations had gold equivalent production during 2001. Gold equivalent
production from the Hayden Hill and Guanaco mines in 2001 was 3,605 ounces with
total cash costs in excess of $300 per ounce. Both of these operations will have
no further commercial production and efforts are now focused on mine closure and
reclamation.

In late 1999, The Company entered into a joint venture, whereby it would
contribute cash while the Venture partner would contribute technology and the
required patents to construct an Autoclaved Aerated Concrete ("AAC") plant near
hoenix, Arizona. Construction of the plant was completed in 2001. AAC is a
lightweight, high strength building block manufactured from silica mine
tailings. Activities in 2001 were primarily marketing and engineering related,
plant construction and startup manufacturing of AAC. The plan for 2002 is to
continue to establish demand for the product with the expectation of earnings
and positive cash flow from this venture in 2oo3. Site Restoration Costs
Although the ultimate amount of reclamation and closure costs is uncertain, the
Company estimates its closure obligations at $72.9 million based on information
currently available including preliminary closure plans and applicable
regulations. As at December 31, 2001, the Company has accrued $55.6 million of
this liability. The Company will continue to accrue this liability on a
unit-of-production basis over the remaining reserves. In addition, the Company
plans reclamation spending of approximately $12.6 million in 2002 as part of its
aggressive plan to get as many projects as possible to post closure monitoring
by the end of 2004.

ADMINISTRATION Administration costs include corporate office expenses related to
the overall management of the business which are not part of direct mine
operating costs. Administration costs include the costs incurred at two offices.
These offices are the corporate office in Toronto and the United States office
n Salt Lake City. Administration expenses totaled $10.1 million in 2001,
compared to $10.4 million in 2000, and $11.2 million in 1999. The 2001
administration expenditures were similar to 2000 and lower than 1999 since the
1999 expenditures included costs associated with the secondary offering.
Administration expenses in 2002 are expected to remain near 2001 levels.

EXPLORATION AND BUSINESS DEVELOPMENT In 2001, total exploration and business
development expenditures were $11.4 million of which $7.9 million was expensed.
In 2000, total exploration and business development expenditures were $18.2
million of which $11.4 million was expensed and in 1999 total exploration and
business development expenditures were $15.5 million of which $11.1 million was
xpensed. Capitalized exploration was incurred primarily on the Hoyle Pond
property and Fort Knox properties, while expensed exploration activities focused
on the George/Goose Lake project in Nunavut and the area surrounding the Kubaka
mine in Russia. Exploration and business development expenditures are expected
to be $11.0 million in 2002 of which $7.9 million is expected to be expensed.

DEPRECIATION, DEPLETION AND AMORTIZATION Depreciation, depletion and
amortization totaled $85.8 million in 2001 compared to $93.2 million in 2000 and
$110.9 million in 1999. Depreciation, depletion and amortization have decreased
per equivalent ounce of gold to $94 in 2001, from $99 in 2000 and $110 in 1999.
The 2001 decrease per equivalent ounce of gold compared to 2000 was primarily
due to increased year-end 2000 proven and probable reserves at the Kubaka mine.
epreciation, depletion and amortization on a per ounce basis are expected to
remain at current levels in 2002.

INTEREST EXPENSE Interest expense totaled $9.1 million in 2001, compared to
$14.3 million in 2000, and $15.8 million in 1999. Interest expense in 2001 is
comprised of $2.0 million relating to the Company's proportionate share of
nterest on the Kubaka project and subordinated loans. In addition, in 2001, the
Company incurred $2.8 million of interest on the Alaskan industrial revenue
bonds, $2.8 million of interest on the debt component of the convertible
debentures and the balance of interest on capital leases. Interest expense
decreased in 2001 due to lower debt balances outstanding and lower interest
rates. For further information on the Company's debt position, see Note 9 to the
Consolidated Financial Statements.

SHARE OF LOSS OF INVESTEE COMPANIES Share of loss of investee companies totaled
$2.2 million in 2001, compared to $8.1 million in 2000, and $0.3 million in
1999. The Company equity accounts investments where it owns more than 20% and
exercises control. During 2001, the Company's share of the losses of the
investee companies was $2.2 million, substantially less than recorded amounts in
2000. The 2000 results included 34% of Dayton Mining Corporation's write-down of
the Andacollo mine.

WRITE-DOWN OF PROPERTY PLANT AND EQUIPMENT Impairment analysis for the operating
assets consisted of comparing the estimated undiscounted future net cash flows
on an area of interest basis with its carrying value, and when the future net
cash flows are less, a non-cash write-down is recorded. Over the past three
years, gold has averaged $276 per ounce and closed the year at $277 per ounce.
Subsequent to the end of 2001, gold has traded above $300 per ounce. In addition
to current and historical spot gold prices, the Company reviewed analysts'
reports and participated in external surveys. As a result of this trend, and
external survey expectations for spot gold prices, the Company used an
assumption of $300 per ounce for gold for both reserve determination and
impairment analysis in 2001, 2000 and 1999. In 1998 the Company used an assumed
gold price of $325 per ounce.

Non-cash property, plant and equipment write-downs totaled $16.1 million in 2001
compared to $72.1 million in 2000 and $184.9 million in 1999. The 2001
write-down was comprised of $11.8 million relating to the Blanket mine due to
the extreme inflationary pressures within Zimbabwe, difficulty in accessing
foreign currency to pay for imported goods and services and the current civil
unrest. The balance of the write-down was on other non-core closure properties.
The 2000 write-down was comprised of $36.1 million relating to the Refugio mine
due to the decision to suspend operations and place the operations on care and
maintenance, and the balance on other non-core development and closure
properties. The 1999 write-down was comprised of $108.8 million relating to the
Fort Knox mine, $10.7 million on the Kubaka mine, $11.2 million on the Refugio
mine and the balance on other non-core development and closure properties.

The details of the asset write-downs are presented in Note 15 to the
Consolidated Financial Statements.

WRITE-DOWN OF OTHER INVESTMENTS The Company has various investments in
resource-related companies at December 31, 2001, totaling $14.0 million. There
were no non-cash write-downs of long-term investments during 2001, compared to
$13.1 million in 2000 and $4.6 million in 1999. In light of the then current
market conditions of resource-related equities and the poor performance of its
equity accounted investments, the Company determined in 2000 that a permanent
impairment in value has occurred and wrote these investments down to their
estimated quoted market value.

INCOME AND MINING TAXES The Company is subject to tax in various jurisdictions
including Canada, the United States, Russia, Zimbabwe and Chile. However, the
Company has substantial operating losses and other tax deductions to shelter
future taxable income. The 2001 liability arises from income taxes in Russia and
federal large corporations tax in Canada. For a detailed income tax
reconciliation, see Note 16 to the Consolidated Financial Statements.

LIQUIDITY AND FINANCIAL RESOURCES

OPERATING ACTIVITIES Cash flow provided from operating activities was $74.5
million compared to $47.8 million in 2000 and $69.5 million in 1999. Cash flow
provided from operating activities in 2002 is expected to be approximately $53.0
million using a spot gold price assumption of $300 per ounce. The 2001 cash flow
from operating activities was positively affected by lower production costs,
interest expense and exploration spending. In addition, $21.6 million of cash
flow was generated upon the restructuring of certain spot deferred forward sales
contracts. The 2001 cash flow from operating activities was used to finance
capital expenditures and service existing debt. There were no dividends paid on
the convertible preferred shares of subsidiary company in 2001.

FINANCING ACTIVITIES During 2001, the Company issued 24.2 million common shares
valued at $23.2 million to acquire 945,400 convertible preferred shares of
subsidiary company. At the time of the transaction the convertible preferred
shares of the subsidiary company had a book value of $48.9 million. The $25.7
million difference in value associated with this transaction was applied against
the carrying values of certain property, plant and equipment. In addition, in
2001, the Company issued 4.3 million common shares for cash consideration of
$4.6 million pursuant to a private placement, issued 4.0 million common shares
valued at $3.8 million to acquire mining properties, and issued 1.3 million
common shares valued at $0.9 million pursuant to the employee share incentive
plan. During 2000, the Company issued 2.0 million common shares for cash
consideration of $1.4 million pursuant to a private placement, issued 2.1
million common shares for proceeds of $1.8 million pursuant to the employee
share incentive plan and repurchased 3.5 million common shares pursuant to a
normal course issuer bid for $5.3 million of cash. During 1999, the Company
issued 10.5 million common shares valued at $25.9 million pursuant to the La
Teko transaction and repurchased 3.7 million common shares pursuant to a normal
course issuer bid for $7.5 million of cash.

On February 12, 2002, the Company completed a public offering and issued from
treasury 23.0 million common shares for net proceeds of $18.5 million. The
majority of the funds raised will be used to purchase the convertible preferred
shares of subsidiary company. If the Company is successful in acquiring the
894,600 convertible preferred shares of subsidiary company at the offer price of
$16.00 per share, the Company would apply the difference between book and market
value of approximately $33.7 million to reduce certain property, plant and
equipment.

The debt component of convertible debentures was reduced by $5.4 million during
2001 compared to $4.9 million during 2000 and $4.4 million during 1999.
Long-term debt repayments were $46.5 million in 2001 compared to $26.4 million
during 2000 and $14.7 million during 1999.

The Company did not declare and pay any dividends to the holders of the
convertible preferred shares of subsidiary company. Dividends paid on the
convertible preferred shares of subsidiary company in 2000, before suspension in
August 2000, totaled $3.4 million compared to $6.9 million in 1999. Included in
the carrying value of the Kinam preferred shares, as at December 31, 2001, is an
accrual of $5.1 million that represents the cumulative unpaid dividends to the
minority holders.

As at December 31, 2001, the Company had a $70 million operating line of credit
in place with a bank syndicate, which is utilized for letters of credit
purposes. This operating line was reduced to $50.0 million on January 2, 2002.
As at December 31, 2001, $59.0 million of letters of credit were issued under
this facility. On January 2, 2002, the Company repaid $9.0 million of the Fort
Knox industrial revenue bonds ("IRB's") which reduced the letters of credit
outstanding under this facility to $49.8 million. The Company intends to
re-market this credit facility in early 2002 since it matures in January 2003.

As at December 31, 2001, the Company's long-term debt consists of $4.2 million
relating to the Kubaka project financing, $49.0 million of IRB's and various
capital leases and other debt of $10.9 million. The current portion of the
long-term debt is $33.1 million. For details of the various components of
long-term debt, see Note 9 to the Consolidated Financial Statements.

INVESTING ACTIVITIES Capital expenditures decreased by 27% in 2001, as $30.4
million was spent on capital additions, compared to $41.6 million in 2000, and
$44.0 million in 1999. The 2001 capital expenditures focused primarily on the
Hoyle Pond and Fort Knox operations with 92% of total capital expenditures
incurred at these two mines. Capital spending at the Hoyle Pond mine totaled
$7.9 million (2000 - $13.8 million, 1999 - $18.6 million), for exploration
drilling, underground development and additions to the underground mobile fleet.
Capital spending at the Fort Knox mine totaled $20.2 million (2000 - $17.6
million, 1999 - $9.5 million), to purchase nine haulage trucks for the True
North ore haulage, complete the access road from the Fort Knox mill to the True
North open pit and for site infrastructure at the True North open pit. The
Company's share of capital spending at the Refugio mine totaled $ nil (2000 -
$3.2 million, 1999 - $7.9 million). Capital expenditures were financed out of
cash flow from operating activities. Planned capital expenditures totaling $28.4
million in 2002 are to be funded from cash flow from operating activities and
current cash reserves.

During 2001, one cash business acquisition was completed as the Company
increased its ownership interest of E-Crete, LLC to approximately 86%. Cash used
in business acquisitions was $1.2 million in 2001, compared to $ nil in 2000 and
$35.0 million in 1999. Cash used in business acquisitions in 1999 primarily
related to the $28.1 million cash component of the True North property
transaction in Alaska and $4.7 million cash payment for the Timmins assets of
Royal Oak Mines Inc.

For details of the various business acquisitions, see Note 2 to the Consolidated
Financial Statements.

BUSINESS RISKS AND MANAGEMENT The Company continuously reviews the mining risks
it encounters in its day-to-day operations. It mitigates the likelihood and
potential severity of these risks through the application of high operating
standards. In addition, there is great emphasis on safety, training and loss
control programs at the various sites. The Company also maintains insurance
coverage and surety bonds to cover normal business risks and financial assurance
to various regulatory bodies pursuant to closure plans. Recent events affecting
the insurance and surety markets worldwide have made it difficult to obtain
additional surety capacity. The Company is reviewing alternatives available to
provide financial assurance.

The Company's operations have been and in the future may be, affected to various
degrees by changes in environmental regulations, including those for future site
restoration and reclamation costs. The overall effect of these changes upon the
Company varies by jurisdiction, and are not predictable but, given the Company's
environmental policies and programs, the effects of any such changes are not
expected to be material. The Company has planned reclamation spending at the
various properties of approximately $12.6 million during 2002.

The Company has prepared reserve estimates based on a $300 per ounce gold price.
Market fluctuations in the price of gold may render certain ore reserves
uneconomical at lower gold prices.

The Company's business is subject to extensive licenses, permits, government
legislation, controls and regulations. The Company endeavors to be in compliance
with these regulations at all times.

The Company is subject to the considerations and risks of operating in Russia.
The economy of the Russian Federation continues to display characteristics of an
emerging market. These characteristics include, but are not limited to, the
existence of a currency that is not freely convertible outside the country,
onerous currency controls, the developing nature of the legal system, persistent
high inflation and tax legislation that is subject to varying interpretations
and constant changes, which may be retroactive.

DISCLOSURES ABOUT MARKET RISKS

COMMODITY PRICE RISKS The Company's revenues are derived primarily from the sale
of gold production. The Company's net income can vary significantly with
fluctuations in the market price of gold. At various times, in response to
market conditions, the Company has entered into gold forward sales contracts,
spot deferred forward sales contracts and written call options for some portion
of expected future production to mitigate the risk of adverse price
fluctuations. The Company does not hold these financial instruments for
speculative or trading purposes. As at December 31, 2001, the Company has gold
forward sales contracts covering 313,000 ounces of future production of which
113,000 ounces are scheduled for delivery in 2002 at $271 per ounce. The Company
is not subject to margin requirements on any of its hedging lines. Based on the
Company's projected 2002 sales volumes, each $10 per ounce change in the average
realized price on gold sales would have an approximate $7.0 million impact on
revenues and pre-tax earnings. For further details of the hedge position as at
December 31, 2001, see Note 8 of the Consolidated Financial Statements.

The Company consumes approximately 260,000 barrels of oil annually throughout
its worldwide operations. In response to market conditions in late 2001, the
Company entered into crude oil forward purchase contracts for approximately
28,500 barrels scheduled to be consumed during 2002 at $20.83 per barrel. Based
on the Company's projected 2002 consumption and the forward purchase
outstanding, each $1 change in crude oil prices would have an approximate $0.2
million impact on operating costs and pre-tax earnings.

FOREIGN CURRENCY EXCHANGE RISK The Company conducts the majority of its
operations in the U.S., Russia, Canada, and Zimbabwe. Currency fluctuations
affect the cash flow that the Company will realize from its operations as gold
is sold in U.S. dollars, while, production costs are incurred in Russian rubles,
Canadian, U.S. and Zimbabwean dollars. The Company's results are positively
affected when the U.S. dollar strengthens against these foreign currencies and
adversely affected when the U.S. dollar weakens against these foreign
currencies. The Company's cash and cash equivalent balances are held in U.S. and
Canadian dollars; holdings denominated in other currencies are relatively
insignificant.

Since 1998, the Russian ruble has weakened against the U.S. dollar and the
Company has benefited primarily through lower Russian labour and materials
costs. The temporal method is used to consolidate the financial results of
operations in Russia. The major currency related exposure at any balance sheet
date is on ruble denominated cash balances and working capital. The bullion
inventory is denominated in U.S. dollars thus there are no related foreign
exchange risks. The foreign exchange exposure on the balance of the working
capital items is nominal. Gold sales during 2001 were primarily denominated in
rubles. Any excess rubles were quickly converted into U.S. dollars minimizing
any foreign exchange risk on cash balances. The U.S. dollars received are used
to service the U.S. dollar denominated debt and the foreign supplies inventory
purchases, while the rubles received from the gold sales are used to pay local
operating costs. The Company has and will continue to convert any excess rubles
into U.S. dollars to repay U.S. denominated third-party and inter-corporate debt
obligations. Assuming the Company's share of estimated 2002 ruble payments of
560 million rubles at an exchange rate of 30 rubles to one U.S. dollar, each 3
ruble change to the U.S. dollar could result in an approximate $1.7 million
change in the Company's pre-tax earnings.

In Canada, the Canadian dollar exposure primarily relates to Canadian dollar
denominated operating, administration, exploration and interest costs. The
Company has self-sustaining operations in Canada which are translated into U.S.
dollars using the current rate method. The current rate method translates assets
and liabilities into U.S. dollars at the rate of exchange in effect at the
balance sheet date and revenue and expense items into U.S. dollars using the
average rate for the reporting period. The Canadian dollar decreased in value by
approximately 6% when compared to the U.S. dollar in 2001. This, combined with
holding net assets in the Canadian self-sustaining operations, resulted in an
increase of $5.6 million in the cumulative translation adjustment account. In
addition, the Company has Canadian dollar denominated operating, administration,
exploration and interest expense. The Company currently has hedged $12.0 million
of this exposure for 2002 at average exchange rates of Canadian $1.4982 per U.S.
dollar. Excluding hedging contracts described above, and assuming 2001 Canadian
dollar payments of $59.0 million dollars at an exchange rate of Canadian $1.55
per U.S. dollar, each 5 cent change to the U.S. dollar could result in an
approximate $1.2 million change in the Company's pre-tax earnings.

INTEREST RATE RISKS The Company has no interest rate swaps outstanding at
December 31, 2001. At December 31, 2001, the Company carries $56.5 million of
variable rate debt, all denominated in U.S. dollars. Interest expense would
change by approximately $0.6 million for every one percent change in interest
rates.

OUTLOOK As at December 31, 2001, the Company has $62.0 million of working
capital, which includes a strong cash balance. The Company is continually
focused on cost containment and is aggressively looking for opportunities to
reduce spending in all areas. In addition, with the exception of the
George/Goose Lake exploration program, all exploration efforts are now focused
near existing producing assets, which should provide synergistic opportunities
in the future. These initiatives, combined with sustainable low cost production,
significant mining properties in Alaska and Timmins and a manageable debt
repayment schedule, provide the Company with the ability to survive low spot
gold prices in order to take advantage of higher prices in the future.

Subsequent to year-end, the Company issued from treasury 23.0 million common
shares for net proceeds of $18.5 million. In addition, the Company announced a
tender offer to acquire the 894,600 convertible preferred shares of subsidiary
company that it does not own for $16.00 per share. These transactions are the
next steps to further strengthen the balance sheet and complement those achieved
in 2001.


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