<DOCUMENT>
<TYPE>EX-99.7
<SEQUENCE>6
<FILENAME>tex99-7.txt
<DESCRIPTION>EXHIBIT 99.7
<TEXT>
<PAGE>


                                                                    Exhibit 99.7

MANAGEMENT'S  DISCUSSION  AND ANALYSIS OF RESULTS OF  OPERATIONS  AND  FINANCIAL
CONDITION

This  restated  Management's  Discussion  and Analysis of Operating  Results and
Financial  Condition  ("MD&A")  should be read in conjunction  with the restated
interim  consolidated  financial  statements  of Kinross  for the  period  ended
September   30,   2004.   Readers  are   cautioned   that  this  MD&A   contains
forward-looking  statements  and that actual  events may vary from  management's
expectations.  Readers  are  encouraged  to consult  Kinross'  restated  audited
financial  statements  for the year ended  December  31,  2003  included  in the
financial  statements for the year ended December 31, 2004 filed with securities
regulatory  authorities in all provinces of Canada for additional  details.  The
audited   financial   statements   are  available  on  the   Company's   website
www.kinross.com and on www.sedar.com.  The consolidated financial statements and
MD&A are presented in U.S.  dollars and have been  prepared in  accordance  with
Canadian generally accepted accounting  principles ("CDN GAAP").  Reconciliation
to United States generally accepted  accounting  principles is provided annually
as a note to the financial statements.  All amounts expressed herein are in U.S.
dollars unless otherwise stated.  This discussion  addresses matters we consider
important  for an  understanding  of our  financial  condition  and  results  of
operations as of and for the three and nine months ended  September 30, 2004, as
well as our outlook.

As  discussed  herein,  this MD&A has been  amended at November 18, 2005 to give
effect  to  the  restatement  as  described  in   "Restatement"   below  and  in
"Restatement" in Note 2 of the restated  consolidated  financial  statements for
the three and nine  months  ended  September  30,  2004.  Apart  from  revisions
resulting from the restatement,  this MD&A does not reflect events subsequent to
September 30, 2004.


OVERVIEW

The  profitability  of the Company and its  competitors  is subject to the world
prices of gold and silver and the costs  associated  with:  the  acquisition  of
mining interests;  exploration and development of mining  interests;  mining and
processing  of gold and silver;  regulatory  and  environmental  compliance  and
general and administrative  functions. The prices of gold and silver are subject
to a multitude of variables outside the Company's control.  In order to minimize
the  impact  of  price  movements,  management  continually  strives  to  be  an
efficient, cost effective producer.

On January 31, 2003, the Company  combined its operations with those of TVX Gold
Inc.  ("TVX") and Echo Bay Mines Ltd.  ("Echo Bay").  This  transaction is fully
described in the December 31, 2003 financial statements,  the accompanying notes
and the annual MD&A. As a result,  comparative numbers for the first nine months
of 2003  include only the results of eight  months of  operations  for the mines
acquired  in the  combination.  This  transaction  had a material  impact on the
Company's  operations  and  its  balance  sheet  rendering   comparisons  rather
meaningless except in the discussion of the operations of each mine.

RESTATEMENT

Following comments from, and discussions with, regulatory  authorities,  Kinross
has restated its consolidated  financial  statements for the year ended December
31,  2003  and  interim  consolidated  financial  statements  in  2004  and  the
comparable periods in 2003, as described in Note 2 to the financial  statements.
Changes were made to the purchase  price  allocation,  allocation of goodwill to
reporting units and subsequent  impairment testing of the assets and liabilities
acquired in the TVX and Echo Bay  transaction  on January 31, 2003.  The interim
consolidated  financial  statements for 2004 have also been restated for changes
to the  accounting  of hedging  relationships.  Effective  January 1, 2004,  the
Company adopted  Accounting  Guideline 13 ("AcG-13"),  "Hedging  Relationships",
which provides guidance concerning  documentation and effectiveness  testing for
derivative  contracts.  Derivative  instruments  that do not  qualify as a hedge
under  AcG-13,  or are not  designated  as a hedge,  are recorded on the balance
sheet at fair value with changes in fair value recognized in earnings.  Upon the
adoption of AcG-13,  certain  derivative  instruments  that had been  previously
accounted  for as hedges  failed to meet the  requirements  of AcG-13 for formal
hedge accounting.


DEVELOPMENTS IN 2004

ACQUISITION  OF THE  REMAINING 51% INTEREST IN RIO PARACATU  MINERACAO  FROM RIO
TINTO PLC.

On November 9, 2004 the Company  announced that it had signed a letter of intent
for the purchase of 51% of the Rio Paracatu  Mineracao (RPM) gold mine in Brazil
from Rio Tinto Plc. ("Rio Tinto").  As a result of this  transaction the Company
will  now own  100% of the  property  and  become  the  operator.  The  proposed
consideration for Rio Tinto's 51% shareholding in RPM (and its immediate holding
companies) is approximately US$260 million payable in cash on completion, with a
working capital  adjustment  which will be determined after the completion based
on the working capital position of RPM and its immediate holding companies,  the
subject  of the sale,  as


                                       1
<PAGE>

at the  date  of  completion.  The  Company  intends  to  finance  the  proposed
transaction  with a combination of cash and debt. The sale is subject to Kinross
and Rio Tinto  reaching  agreement in all terms and  entering  into a definitive
agreement. The transaction is expected to be completed by the end of 2004.

CONSOLIDATION AND DECONSOLIDATION OF COMMON SHARES

On October 8, 2004 the Company announced that it would hold a special meeting of
its shareholders on November 26, 2004 to approve an amendment to its articles to
effect a consolidation (reverse split) of its common shares on a 100:1 basis and
the  immediate  deconsolidation  (split)  of such  shares on a 1:100  basis.  If
approved,  the  consolidation  is scheduled to take place on Sunday November 28,
2004 and the  deconsolidation  will follow on Monday  November 29, 2004 at 12:01
am. As a result,  shareholders  holding less than 100  pre-consolidation  shares
will receive a cash  payment  equal to the weighted  average  trading  price per
share on the Toronto stock  exchange for the five trading days prior to November
26, 2004. Shareholders holding 100 or more pre-consolidation  shares will not be
affected by the  consolidation/deconsolidation  other than to be asked to tender
their old share  certificates for a new share certificate  bearing the new CUSIP
number. The effect of this proposal is to provide a large number of shareholders
who hold less than 100 shares with cash representing the value of their holdings
without cost or commission  and to eliminate the high cost being incurred by the
Company to maintain these shareholdings.

CLOSURE OF GOLD HEDGE(1) PROGRAM

During the second  quarter of 2004,  the Company closed out the remainder of its
gold hedge book at a cost of $9.6  million,  a portion of which was  deferred on
the balance sheet. However, for accounting purposes, a loss of $4.4 million that
had been  deferred  related to the close out was  recognized  in earnings in the
third quarter.  In addition,  a deferred loss of $3.0 million will be recognized
in earnings in the fourth  quarter of 2004 and a deferred  loss of $4.7  million
will be recognized in the first half of 2005.

REPAYMENT OF INDUSTRIAL REVENUE BONDS

During the first half of 2004, the Company fully repaid the  Industrial  Revenue
Bonds of $25.0 million  owing to the Alaska  Industrial  Development  and Export
Authority.

CLOSURE OF NEW BRITANNIA

Due to poor economic  performance,  Kinross and its joint venture partner,  High
River Gold Mines Ltd.,  made the  decision  during the spring of 2004 to suspend
all underground mine  development  work at New Britannia.  Mining and milling of
developed  ore  will  continue  until  early  in the  fourth  quarter  of  2004.
Exploration  activities  have  defined  a small  accretive  discovery,  which is
planned to be in production in the third quarter of 2005.



----------
(1) The use of the word  "hedge" or "hedging"  throughout  the MD&A refers to an
economic  hedge,  which is not  necessarily  a hedge from a financial  statement
perspective as defined in Accounting Guideline 13, "Hedging Relationships".


                                       2
<PAGE>


SUMMARY OF RESULTS FOR THE THIRD QUARTER AND NINE MONTHS OF 2004

<TABLE>
<CAPTION>
==================================================================================================================================
                                                             Three months ended                       Nine months ended
                                                              September 30,                              September 30,
----------------------------------------------------------------------------------------------------------------------------------
                                                      2004         2003       Change        2004            2003      Change (a)
----------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>            <C>             <C>     <C>             <C>               <C>
Gold equivalent production - ounces (b)             412,196       426,110       (3%)       1,229,300       1,213,875       1%
Revenue (millions)                               $    174.6     $   153.8       14%     $      487.6    $      428.6      14%
Net earnings (loss) (millions)                   $     14.4     $   (15.3)      nm      $       24.3    $      (40.4)   (160%)
Net earnings (loss) attributable to
   common shareholders (millions)                $     14.4     $    (1.0)      nm      $       24.3    $      (30.4)     nm
Basic and diluted earnings (loss) per share      $     0.04     $      --       nm      $       0.07    $      (0.10)     nm
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  "nm" refers to not meaningful.
(b)  Included in gold equivalent  production is silver  production  converted to
     gold  production  using a ratio of the average  spot market  prices for the
     commodities for each  comparative  period.  The resulting ratios are 62.2:1
     and  62.1:1  for  the  third   quarter  and  first  nine  months  of  2004,
     respectively,  and 72.8:1 and 74.6:1 for the third  quarter  and first nine
     months of 2003,  respectively.  The  Company  produced  1.3 and 3.1 million
     ounces  of  silver in the third  quarter  and  first  nine  months of 2004,
     respectively, and 1.5 and 3.5 million ounces of silver in the third quarter
     and first nine months of 2003.

THIRD QUARTER 2004 VS. THIRD QUARTER 2003

o    The Company's share of gold equivalent  production for the third quarter of
     2004 was 3% lower than the corresponding  period of 2003 mainly as a result
     of lower production from Fort Knox, Porcupine and Kubaka.
o    Revenues from gold and silver sales in the third quarter of 2004  increased
     14% as compared to third quarter of 2003 due to higher realized gold prices
     in the third  quarter of 2004.  The Company sold 425,443  ounces of gold in
     the third quarter at an average  realized price of $394 per ounce while the
     average spot gold price for the quarter was $401 per ounce.  This  compares
     to 405,561  ounces of gold sold in the third  quarter of 2003 at an average
     realized  price per ounce of gold of $363 per ounce with the  average  spot
     price for that period being $363 per ounce.
o    Net  earnings  attributable  to common  shares  for the  quarter  was $14.4
     million or $0.04 per share  compared  to a net loss of $15.3  million (or a
     net loss attributable to common shares of $1.0 million after accounting for
     the convertible  debenture) for the third quarter of 2003. The net loss for
     the third  quarter of 2003 was  restated  to reflect  the  adoption  of the
     Canadian Institute of Chartered  Accountants ("CICA") Handbook Section 3110
     "Asset retirement obligations" ("Section 3110"). This restatement increased
     the net loss for the third quarter of 2003 by $0.1 million to $1.0 million.
o    Cost of sales  increased by 14% despite lower  production  primarily due to
     the  resumption  of  milling at Kubaka and  increased  fuel and  consumable
     costs.
o    Cash flow  provided  from  operating  activities  for the quarter was $62.9
     million in 2004 compared to $36.7 million in 2003.  Cash flow provided from
     operating  activities increased due to higher gold prices and a decrease in
     working capital requirements.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    For the first nine months of 2004 the  Company's  share of gold  equivalent
     production  increased  slightly as compared to the corresponding  period in
     2003.  The slight  increase is primarily due to the inclusion of only eight
     months of operating  information for 2003 for the mines acquired in the TVX
     and Echo Bay  combinations,  which was partially offset by lower production
     during the first half of 2004.
o    Revenues  from  gold and  silver  sales in the  first  nine  months of 2004
     increased  14% primarily due to higher gold prices in the first nine months
     of 2004.
o    The Company sold 1,191,306  ounces of gold in the first nine months of 2004
     at an average  realized price of $394 per ounce while the average spot gold
     price was $401 per ounce. This compares to 1,176,573 ounces of gold sold in
     the first  nine  months of 2003 at an average  realized  price per ounce of
     gold of $351 per ounce ($354 average spot price).
o    Net earnings for the first nine months of 2004 were $24.3 million, or $0.07
     per share,  compared to a net loss of $40.4 million, (net loss attributable
     to common shares of $30.4 million,  $0.10 per share) for the  corresponding
     period in 2003.  The net loss for the first quarter of 2003 was restated to
     reflect the  adoption of the Canadian  Institute  of Chartered  Accountants
     ("CICA")  Handbook Section 3110 "Asset  retirement  obligations"  ("Section
     3110").  This restatement


                                       3
<PAGE>

     increased the net loss for the first nine months of 2003 by $1.2 million to
     $40.4 million.

o    Costs of sales  increased by 7% due to an increased  number of ounces sold,
     the resumption of milling at Kubaka and higher fuel and consumable costs.
o    Cash flow provided from  operating  activities for the first nine months of
     2004 was $103.3  million in 2004  compared to $70.8  million in 2003.  Cash
     flow provided from operating  activities increased due to higher production
     and  gold  sales,  partially  offset  by an  increase  in  working  capital
     requirements.
o    Significant factors in the use of cash were capital development at Refugio,
     Fort Knox and the Pamour project at the Porcupine Joint Venture.

RESULTS OF OPERATIONS

SEGMENT EARNINGS (LOSS)

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
in US$ millions                         Three months ended           Q3               Nine months ended           YTD
                                            September 30,        2004 vs 2003           September 30,        2004 vs 2003
                                        --------------------                         ------------------
                                          2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                      <C>       <C>          <C>                  <C>       <C>         <C>          <C>
Operating Segments
  Fort Knox                              $  6.5    $   2.9      $ 3.6         nm     $ 13.3    $   1.7     $ 11.6       682%
  Paracatu                                  1.7        0.4        1.3       325%        6.2        1.7        4.5       265%
  Round Mountain                            6.2        2.7        3.5       130%       18.1       10.7        7.4        69%
  Porcupine Joint Venture                   1.9        0.3        1.6       533%        5.7        0.1        5.6      5600%
  La Coipa                                 (1.1)      (0.6)      (0.5)       83%        0.7       (3.3)       4.0         nm
  Crixas                                    3.2        2.3        0.9        39%        9.4        5.7        3.7        65%
  Musselwhite                              (1.0)      (1.2)       0.2       (17%)      (3.0)      (5.6)       2.6         nm
  Kubaka (b)                               (1.3)       2.0       (3.3)        nm        5.0        6.8       (1.8)        nm
  Other operations (c)                      2.2      (12.5)      14.7         nm       (1.4)     (23.2)      21.8         nm
Corporate & other                         (13.7)      (8.6)      (5.1)       59%      (40.5)     (32.1)      (8.4)       26%
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                  $  4.6    $ (12.3)    $ 16.9         nm     $ 13.5    $ (37.5)    $ 51.0         nm
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  Segment earning (loss) for the nine months ended September 30, 2003 include
     only 8 months of operating and financial  results for the mines acquired in
     the TVX/Echo Bay transaction.
(b)  Segment earnings (loss) for 2003 included the Company's portion of Kubaka's
     financial results (54.7% until February 28, 2003, and 100% thereafter).
(c)  Other Operations  include Kettle River,  Refugio,  Lupin and New Britannia.
     Segment  earnings  (loss)  for  2003  included  the  Company's  portion  of
     financial  results for Lupin and Kettle River at 100% and New  Britannia at
     50% since February 1, 2003.


                                       4
<PAGE>


OPERATIONS

FORT KNOX (100% OWNERSHIP AND OPERATOR) - U.S.A.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                        Three months ended           Q3               Nine months ended          YTD
                                           September 30,        2004 vs 2003           September 30,         2004 vs 2003
                                       --------------------                         -------------------
                                          2004       2003      Change    Change %     2004       2003      Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>        <C>        <C>              <C>  <C>       <C>         <C>             <C>

Operating Statistics
Tonnes processed (000's)                3,349.2    3,653.3     (304.1)       (8%)   9,656.8   10,180.1     (523.3)       (5%)
Grade (grams/tonne)                        0.79       1.00      (0.21)      (21%)      0.81       1.07      (0.26)      (24%)
Recovery (%)                                89%        84%         5%         6%        86%        83%         3%         4%
Gold equivalent ounces produced          84,738     98,518    (13,780)      (14%)   239,725    291,157    (51,432)      (18%)

Financial Data (in US$ millions)
Revenues                               $   37.2   $   37.0   $    0.2         1%   $  100.2  $   105.0   $   (4.8)       (5%)
Cost of sales (a)                          22.4       24.4       (2.0)       (8%)      64.2       72.2       (8.0)      (11%)
Accretion                                   0.3        0.4       (0.1)      (25%)       1.0        1.0         --         0%
Depreciation, depletion & amortization      7.8        8.6       (0.8)       (9%)      21.4       28.4       (7.0)      (25%)
-----------------------------------------------------------------------------------------------------------------------------
                                            6.7        3.6        3.1        86%       13.6        3.4       10.2       300%
Exploration                                 0.2        0.7       (0.5)      (71%)       0.3        1.7       (1.4)      (82%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                       $    6.5   $    2.9   $    3.6       124%   $   13.3  $     1.7   $   11.6       682%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a) Cost of sales excludes accretion, depreciation, depletion and amortization.

The  Company  acquired  the Fort  Knox open pit mine,  located  near  Fairbanks,
Alaska, in 1998. The Fort Knox operation consists of the main Fort Knox open pit
and the True North open pit located  approximately  15  kilometres  northwest of
Fort Knox.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold  equivalent  production  was lower by  approximately  14% reflecting a
     reduction  in mill  feed,  lower  grades  and less  high-grade  True  North
     material being processed as compared to the third quarter of 2003.
o    Revenues were up by 1% despite  producing  and selling  fewer ounces,  as a
     result of stronger gold prices.
o    Cost of sales decreased by 8% due to fewer tonnes being  processed and
     fewer ounces sold. This was partially  offset by increases in fuel and
     power costs.  New larger  capacity  mining  equipment  has been added to
     the fleet in the third  quarter,  which  will help to reduce  costs on a
     per ounce basis.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold equivalent  production was lower by  approximately  18% reflecting low
     mill feed grades due to the mining  sequence at Fort Knox and the  deferral
     of True North mining to the second half of 2004.
o    Suspension  of mining of the True North deposit was to allow the True North
     mining  fleet to be utilized in  completing  the next phase of the tailings
     dam lift at Fort Knox  instead  of relying on more  expensive  third  party
     contractors.  This is expected to result in  decreased  production  for the
     full year 2004 compared to 2003.
o    Gold  equivalent  production  of 239,725  ounces was  higher  than  planned
     production of 223,800 ounces for the first nine months of 2004.
o    The decrease in cost of sales  reflects the lower ounces  produced and sold
     as discussed  above,  however this is partially offset by increases in fuel
     and power  costs and other  consumables  and late  delivery  of new  mining
     equipment.
o    Cost of sales, on a per ounce basis,  are expected to decrease quarter over
     quarter  as waste  mining  efforts  shift to the Fort Knox  Mine  expansion
     program.  This major pit  expansion  will take place over the next  several
     years, releasing approximately 1 million ounces of gold.
o    Exploration  conducted  in 2003 and  additional  results from the Fort Knox
     in-pit work confirmed  sufficient  continuity of the  mineralized  zones to
     justify a major  pit wall  layback  at an  assumed  gold  price of $325 per
     ounce. This major layback is comprised of a three year, approximately $60.0
     million capital  expenditure program mostly in the form of waste removal to
     liberate ore to prolong the economic life of the Fort Knox mine.
o    The current capital expenditures estimate for full year 2004 is expected to
     approximate $59 million. In the first nine months of 2004 $38.2 million was
     spent - $15.6  million for mine  development,  $6.2 million on the tailings
     dam with the balance spent on new equipment and equipment rebuilds.


                                       5
<PAGE>

The  Company's  forecast for 2004 is gold  production of  approximately  342,000
ounces.

ROUND MOUNTAIN (50% OWNERSHIP AND OPERATOR) - U.S.A.

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                      Three months ended            Q3            Nine months ended            YTD
                                         September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                   <C>         <C>       <C>              <C>  <C>        <C>        <C>              <C>
Operating Statistics
Tonnes processed (000's) (b)           16,166.5    3,972.5   12,194.0       307%   50,909.0   14,723.6   36,185.4       246%
Grade (grams/tonne)                        0.64       0.51       0.13        25%       0.65       0.62       0.03         5%
Recovery (%)                                66%        66%         0%         0%        66%        66%         0%         0%
Gold equivalent ounces produced         107,599     97,468     10,131        10%    302,137    277,838     24,299         9%

Financial Data (in US$ millions)
Revenues                              $    47.9   $   34.5  $    13.4        39%  $   121.5  $    97.8  $    23.7        24%
Cost of sales (c)                          25.9       19.5        6.4        33%       64.5       53.1       11.4        21%
Accretion                                   0.5        0.5          -         0%        1.4        1.2        0.2        17%
Depreciation, depletion & amortization     14.9       11.2        3.7        33%       37.0       31.4        5.6        18%
-----------------------------------------------------------------------------------------------------------------------------
                                            6.6        3.3        3.3       100%       18.6       12.1        6.5        54%
Exploration                                 0.3        0.6       (0.3)      (50%)       0.5        1.4       (0.9)      (64%)
Other                                       0.1         --        0.1         nm         --         --         --         0%
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                      $     6.2   $    2.7  $     3.5       130%  $    18.1  $    10.7  $     7.4        69%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through September only.
(b)  Tonnes processed represent 100% of mine production.
(c)  Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company acquired its ownership interest in the Round Mountain open pit mine,
located in Nye County,  Nevada, upon completion of the combination with Echo Bay
on January 31, 2003.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold  equivalent  production was higher by 10% due to  acceleration  in the
     placement of ore on the dedicated leach pads to offset crushing and milling
     limitations  in the latter part of 2003 and to stockpile  higher grade ore.
     The  milling  and  crushing  limitations  resulted  from  a  failure  of an
     electrical transformer in the last half of 2003, which has been repaired.
o    Revenues  were up by 39% due to increased  number of ounces sold and higher
     realized gold prices.
o    Costs of sales increased by 33% due to increased  ounces sold, but also due
     to  increases  in fuel  costs  and  surcharges,  power  costs  and  milling
     supplies.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold equivalent  production for the first nine months of 2004 was 9% higher
     reflecting  acceleration in placement of ore on the dedicated leach pads to
     offset  crushing and milling  limitations in the latter part of 2003 and to
     stockpile higher grade ore. The milling and crushing  limitations  resulted
     from a failure of an electrical transformer in the last half of 2003, which
     has been repaired.
o    Gold  equivalent  production was 10% higher than the planned  production of
     275,300 ounces for the first nine months of 2004.
o    Revenues  were up by 24% due to increased  number of ounces sold and higher
     realized gold prices.
o    The increase in cost of sales  reflects the increased  production and sales
     along with  increases  in fuel costs,  power  costs,  supplies and marginal
     increases in payroll and benefits.
o    Capital  expenditures  during the first nine months were $6.7  million with
     total year planned  expenditures  of $11.6 million (the  Company's  share).
     Capital  expenditures  during the first nine  months of 2004 were  incurred
     primarily on leach pad expansions and  capitalized  exploration on the Gold
     Hill deposit.

The  Company's  forecast for 2004 is gold  production of  approximately  393,000
ounces.


                                       6
<PAGE>


PORCUPINE JOINT VENTURE (49% INTEREST, PLACER DOME 51%, OPERATOR) - CANADA

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                       Three months ended            Q3              Nine months ended          YTD
                                          September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004       2003      Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                    <C>        <C>        <C>            <C>    <C>        <C>         <C>            <C>
Operating Statistics
Tonnes processed (000's) (a)            1,019.0    1,063.8      (44.8)       (4%)   2,999.0    3,112.0     (113.0)       (4%)
Grade (grams/tonne)                        3.04       3.70      (0.66)      (18%)      3.45       3.65      (0.20)       (5%)
Recovery (%)                                93%        93%         0%         0%        92%        93%        (1%)       (1%)
Gold equivalent ounces produced          45,079     57,779    (12,700)      (22%)   150,171    165,323    (15,152)       (9%)

Financial Data (in US$ millions)
Revenues                               $   19.1   $   22.5   $   (3.4)      (15%)  $   59.4   $   61.0    $  (1.6)       (3%)
Cost of sales (b)                          10.8       12.7       (1.9)      (15%)      34.1       37.9       (3.8)      (10%)
Accretion                                   0.2        0.1        0.1       100%        0.5        0.4        0.1        25%
Depreciation, depletion & amortization      5.3        7.8       (2.5)      (32%)      16.4       18.3       (1.9)      (10%)
-----------------------------------------------------------------------------------------------------------------------------
                                            2.8        1.9        0.9        47%        8.4        4.4        4.0        91%
Exploration                                 0.7        0.5        0.2        40%        2.5        1.8        0.7        39%
Other                                       0.2        1.1       (0.9)      (82%)       0.2        2.5       (2.3)      (92%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                       $    1.9   $    0.3   $    1.6       533%   $    5.7   $    0.1    $   5.6      5600%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  Tonnes processed represent 100% of mine production.
(b)  Cost of sales excludes accretion, depreciation, depletion and amortization.

The  Company  formed  this  joint  venture  on July 1, 2002 with a wholly  owned
subsidiary  of  Placer  Dome  Inc.  by  combining  each  company's  gold  mining
operations in the Porcupine district of Timmins, Ontario.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold  equivalent  production  was 22%  lower  due to  closure  of the  Dome
     underground  mining operations at the end of May. The Dome underground mine
     was the longest  operating  mine in North America  having been in operation
     for 94 years.  Revenues  were down by 15% due to the lower  production  and
     ounces sold, partially offset by higher realized gold prices than the third
     quarter of 2003.
o    Cost of sales was down due to fewer ounces being sold,  partially offset by
     the  impact of a  stronger  Canadian  dollar in the third  quarter  of 2004
     compared with the third quarter of 2003.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold  equivalent  production  was lower by 9% reflecting the closure of the
     Dome  underground  mining  operations  at the end of May  offset  by higher
     underground  grades  from  Hoyle  Pond  being  processed.  The  Hoyle  Pond
     underground  and Dome open pit mines are still in operation.  Revenues were
     down by 3% as a result of the lower production and sales,  partially offset
     by an  increase  in  realized  gold prices  versus the first nine months in
     2003.
o    Costs of sales  decreased as fewer  ounces  were sold,  however  costs were
     negatively impacted by rising fuel and energy prices, as well as the impact
     of processing higher underground grades.
o    The Company and its partner planned an aggressive spending program for 2004
     centred on expanding reserves through the development of the Pamour project
     and Hoyle  Pond  development.  Capital  expenditures  during the first nine
     months were $14.6  million  with total year planned  expenditures  of $28.7
     million (the Company's share).  Capital  expenditures during the first nine
     months of 2004 were lower due to deferral of the Pamour  project,  deferral
     of  capital  for the winze (an  underground  tunnel to  provide  connection
     between  levels of the mine) at Hoyle Pond and  deferral  of the Hoyle Pond
     crown pillar project.

The  Company's  forecast for 2004 is gold  production of  approximately  197,000
ounces.


                                       7
<PAGE>


KUBAKA (98.1% OWNERSHIP AND OPERATOR) - RUSSIA

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                      Three months ended            Q3            Nine months ended            YTD
                                         September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                      <C>        <C>       <C>          <C>       <C>        <C>       <C>          <C>
Operating Statistics
Tonnes processed (000's) (b)              115.0      227.8     (112.8)      (50%)     549.0      661.8     (112.8)      (17%)
Grade (grams/tonne)                        4.62       6.14      (1.52)      (25%)      4.93       6.47      (1.54)      (24%)
Recovery (%)                                97%        96%         1%         1%        97%        97%         0%         0%
Gold equivalent ounces produced          16,603     43,144    (26,541)      (62%)    84,983    120,770    (35,787)      (30%)

Financial Data (in US$ millions)
Revenues                                $   9.7    $  15.6   $   (5.9)      (38%)   $  38.2   $   43.3   $   (5.1)      (12%)
Cost of sales (c)                           7.7        8.4       (0.7)       (8%)      25.4       22.2        3.2        14%
Accretion                                   0.1        0.1         --         0%        0.3         --        0.3         nm
Depreciation, depletion & amortization      1.4        4.7       (3.3)      (70%)       5.2       12.9       (7.7)      (60%)
-----------------------------------------------------------------------------------------------------------------------------
                                            0.5        2.4       (1.9)      (79%)       7.3        8.2       (0.9)      (11%)
Exploration                                  --        0.3       (0.3)     (100%)       0.1        0.9       (0.8)      (89%)
Other                                       1.8        0.1        1.7      1700%        2.2        0.5        1.7       340%
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings (loss)                 $  (1.3)   $   2.0   $   (3.3)        nm    $   5.0   $    6.8   $   (1.8)      (26%)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  54.7% ownership interest to February 28, 2003, 98.1% thereafter.
(b)  Tonnes processed represent 100% of mine production.
(c)  Cost of sales excludes accretion, depreciation, depletion and amortization.

On February 28, 2003, the Company completed a step-up transaction increasing its
interest by 43.44% in the Kubaka open pit mine located in the Magadan  Oblast in
far eastern  Russia to bring its  ownership  interest to 98.1%.  Therefore,  the
comparative  results  include  the  Company's  share of 54.7%  for the first two
months of 2003 and its share of 98.1% thereafter.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold  equivalent  production  was  62%  lower  due  to  the  processing  of
     relatively lower grade stockpiles and an eight-week  scheduled  shutdown of
     the mill in the third  quarter  of 2004.  The  shutdown  of the mill was to
     allow for more  efficient  operations of the mill in the fourth  quarter of
     2004  and  to  eliminate   overtime-related  labor  costs  associated  with
     vacations.
o    Despite  a 62%  drop in  production  cost  of  sales  decreased  by only 8%
     reflecting higher fuel costs, equipment supplies and mill consumables along
     with costs related to the shutdown and  subsequent  restarting of the mill.
     These  increased  costs were partially  offset by reduced selling costs and
     property taxes.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold  equivalent  production  was 30% lower  reflecting  the  processing of
     relatively lower grade stockpiles and the planned  eight-week mill shutdown
     in the third quarter of 2004.
o    Gold  equivalent  production was 19% higher than the planned  production of
     71,400  ounces  for the  first  nine  months  of 2004 as a result of higher
     tonnage than planned due to processing of stockpiles.
o    The  increase  in cost of  sales  despite  lower  production  reflects  the
     processing  of lower  grade  material  as well as the impact of higher fuel
     costs,  increased  transportation and equipment costs, care and maintenance
     costs during the shutdown,  and the costs  associated  with the  subsequent
     restarting  of the mill.  These cost  increases  were  partially  offset by
     reduced selling costs and property taxes.
o    The  all  season  road  connecting  the  Birkachan  deposit  to the  Kubaka
     processing  facility will be completed early in the fourth quarter of 2004.
     Upon  completion,  ore from the Birkachan mine will start to be transported
     to the Kubaka mill.
o    In the first nine months of 2004, the Company spent $13.7 million primarily
     on pre-strip and construction at Birkachan,  new mechanical equipment (haul
     truck, loader and drill rig) and the tailings expansion project.

The Company's  forecast for 2004 is equivalent gold production of  approximately
128,000 ounces.


                                       8
<PAGE>


PARACATU  (ALSO KNOWN AS BRASILIA - 49%  OWNERSHIP,  RIO TINTO 51%,  OPERATOR) -
BRAZIL

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                       Three months ended           Q3            Nine months ended            YTD
                                         September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                   <C>         <C>         <C>           <C>   <C>        <C>           <C>           <C>
Operating Statistics
Tonnes processed (000's) (b)            4,409.1    4,654.6     (245.5)       (5%)  13,179.1   12,251.5      927.6         8%
Grade (grams/tonne)                        0.44       0.43       0.01         2%       0.45       0.40       0.05        13%
Recovery (%)                                78%        75%         3%         4%        76%        77%        (1%)       (1%)
Gold equivalent ounces produced          23,374     23,577       (203)       (1%)    69,810     66,242      3,568         5%

Financial Data (in US$ millions)
Revenues                               $    9.3   $    8.7    $   0.6         7%  $    28.4  $    23.3     $  5.1        22%
Cost of sales (c)                           5.1        5.0        0.1         2%       14.7       13.2        1.5        11%
Accretion                                   0.1        0.2       (0.1)      (50%)       0.4        0.4         --         0%
Depreciation, depletion & amortization      2.4        2.5       (0.1)       (4%)       7.1        7.1         --         0%
-----------------------------------------------------------------------------------------------------------------------------
                                            1.7        1.0        0.7        70%        6.2        2.6        3.6       138%
Exploration                                  --       (0.3)       0.3      (100%)        --         --         --         0%
Other                                        --        0.9       (0.9)     (100%)        --        0.9       (0.9)     (100%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                       $    1.7   $    0.4    $   1.3       325%  $     6.2  $     1.7     $  4.5       265%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through September only.
(b)  Tonnes processed represent 100% of mine production.
(c)  Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company  acquired  its  ownership  interest in the  Paracatu  open pit mine,
located in the State of Minas Gerais,  upon completion of the  combination  with
TVX on January 31, 2003.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold equivalent production was essentially the same in the third quarter of
     2004 as the respective  period in 2003.  Increased  grade and recovery rate
     was offset by fewer tonnes processed. Revenues, however, increased by 7% as
     a result of realizing approximately 6% higher gold prices per ounce.
o    Cost of sales were similar quarter-over-quarter, increasing by only 2%.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold equivalent production was 5% higher than the first nine months of 2003
     as a result of increased mill throughput and  higher-grade  ore.  Increased
     ounces  sold and higher  realized  gold  prices  lead to a 22%  increase in
     revenues.
o    Cost of sales increased 11% as a result of increased number of ounces sold,
     and increased energy and consumable costs.
o    The Company planned capital expenditures of $13.1 million in 2004 mainly to
     expand the semi-autogenous  grinding ("SAG") mill. In the first nine months
     of 2004,  only $3.1 million was spent due to the delay in completion of the
     SAG mill feasibility study.

The  Company's  forecast for 2004 is gold  production  of  approximately  88,000
ounces.


                                       9
<PAGE>

LA COIPA (50% OWNERSHIP, PLACER DOME 50%, OPERATOR) - CHILE

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                      Three months ended            Q3             Nine months ended           YTD
                                         September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                    <C>        <C>           <C>          <C>   <C>        <C>          <C>          <C>
Operating Statistics
Tonnes processed (000's) (b)            1,712.0    1,626.0       86.0         5%    4,901.0    4,212.0      689.0        16%
Grade (grams/tonne)                        0.76       1.15      (0.39)      (34%)      1.00       1.00         --         0%
Recovery (%)                                80%        83%        (3%)       (4%)       82%        84%        (2%)       (2%)
Gold equivalent ounces produced          35,129     42,890     (7,761)      (18%)   108,132     99,667      8,465         8%

Financial Data (in US$ millions)
Revenues                               $   14.2   $   11.2    $   3.0        27%   $   44.1   $   33.4     $ 10.7        32%
Cost of sales (c)                          11.2        7.8        3.4        44%       29.7       25.5        4.2        16%
Accretion                                   0.1        0.1         --         0%        0.2        0.2         --         0%
Depreciation, depletion & amortization      3.6        3.6         --         0%       12.9       10.2        2.7        26%
-----------------------------------------------------------------------------------------------------------------------------
                                           (0.7)      (0.3)      (0.4)      133%        1.3       (2.5)       3.8      (152%)
Exploration                                 0.1        0.3       (0.2)      (67%)       0.2        0.8       (0.6)      (75%)
Other                                       0.3         --        0.3         nm        0.4         --        0.4         nm
-----------------------------------------------------------------------------------------------------------------------------
Segment (loss) earnings                $   (1.1)  $   (0.6)   $  (0.5)       83%   $    0.7   $   (3.3)    $  4.0         nm
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through September only.
(b)  Tonnes processed represent 100% of mine production.
(c)  Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company  acquired its ownership  interest in the La Coipa open pit mine upon
completion of the combination with TVX on January 31, 2003.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold  equivalent  production  was 18% lower as a result of lower grades and
     recovery,  partially  offset by increased  throughput  when compared to the
     same  period  in  2003.  However,  revenues  were up by 27%  due to  higher
     realized  gold  prices and an  increased  number of ounces  sold during the
     quarter due to timing differences  between the production and eventual sale
     of ounces.
o    Cost of sales  was up by 44% due to an  increase  in the  number  of ounces
     sold,  an increase  in tonnes  processed,  and higher  fuel and  consumable
     costs.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold  equivalent  production was higher by  approximately  8% mainly due to
     changes in the mine plan. The increase in ounces  produced and sold,  along
     with higher realized gold prices lead to a 32% increase in revenue.
o    Gold equivalent production was 55% better than planned production of 69,800
     ounces for the first nine months of 2004.
o    Cost of sales went up by 16% due to increased  in-pit  mining of waste rock
     along with increases in energy and consumable costs.  Costs, on a per ounce
     basis,  will  increase  throughout  the year with the mining of more in-pit
     waste rock than in 2003.

The  Company's  forecast for 2004 is gold  production of  approximately  144,000
ounces.


                                       10
<PAGE>


CRIXAS (50% OWNERSHIP, ANGLO GOLD 50%, OPERATOR) - BRAZIL

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                       Three months ended            Q3             Nine months ended            YTD
                                          September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>              <C>                      <C>        <C>         <C>         <C>      <C>        <C>         <C>         <C>
Operating Statistics
Tonnes processed (000's) (b)              190.8      190.9       (0.1)       (0%)     559.1      502.6       56.5        11%
Grade (grams/tonne)                        8.17       8.27      (0.10)       (1%)      8.15       8.30      (0.15)       (2%)
Recovery (%)                                95%        96%        (1%)       (1%)       95%        96%        (1%)       (1%)
Gold equivalent ounces produced          23,858     24,216       (358)       (1%)    69,809     63,923      5,886         9%

Financial Data (in US$ millions)
Revenues                                $   9.9    $   8.0     $  1.9        24%    $  28.1    $  22.3     $  5.8        26%
Cost of sales (c)                           3.2        2.1        1.1        52%        8.9        7.2        1.7        24%
Accretion                                   0.1        0.1          -         0%        0.1        0.1         --         0%
Depreciation, depletion & amortization      3.3        3.4       (0.1)       (3%)       9.5        9.0        0.5         6%
-----------------------------------------------------------------------------------------------------------------------------
                                            3.3        2.4        0.9        38%        9.6        6.0        3.6        60%
Exploration                                 0.1        0.1         --         0%        0.2        0.3       (0.1)      (33%)
-----------------------------------------------------------------------------------------------------------------------------
Segment earnings                        $   3.2    $   2.3     $  0.9        39%    $   9.4    $   5.7     $  3.7        65%
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through September only.
(b)  Tonnes processed represent 100% of mine production.
(c)  Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company  acquired its  ownership  interest in the Crixas  underground  mine,
located in the state of Goias,  upon completion of the  combination  with TVX on
January 31, 2003.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold equivalent production was essentially unchanged, however the number of
     ounces sold  increased by 9%. The  increased  number of ounces sold,  along
     with a higher realized gold price lead to a 24% increase in revenues.
o    Costs of sales increased by 52% due to the increased  number of ounces sold
     and higher fuel and  consumable  costs.  However costs were largely in line
     with the plan in spite of the slightly lower gold production.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold  equivalent  production  was higher by 9% mainly due to changes in the
     mine plan.  The impact of processing  more tonnes was  partially  offset by
     marginally  lower grade and recovery  rates.  Gold  equivalent  ounces sold
     increased  by 10%.  Revenues  were up by 26% due to  higher  realized  gold
     prices and the increase to the number of ounces sold.
o    Gold equivalent  production was  essentially on plan with lower  throughput
     and grade being partially offset by higher recovery.
o    Cost of sales  increased by 24% due to the increased  number of ounces sold
     along with lower grades and recovery rates.  Although costs, on a per ounce
     basis, were higher than the comparative  period,  they were on plan for the
     first nine months of 2004.

The  Company's  forecast for 2004 is gold  production  of  approximately  90,000
ounces.


                                       11
<PAGE>

MUSSELWHITE (31.93% OWNERSHIP, PLACER DOME 68.07%, OPERATOR) - CANADA

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                        Three months ended            Q3             Nine months ended           YTD
                                           September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                     ----------------------                      ----------------------
                                        2004       2003      Change    Change %     2004     2003 (a)    Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>        <C>         <C>         <C>    <C>          <C>        <C>          <C>
Operating Statistics
Tonnes processed (000's) (b)              372.8      339.4       33.4        10%    1,100.7      873.2      227.5        26%
Grade (grams/tonne)                        5.17       5.40      (0.23)       (4%)      5.20       5.40      (0.20)       (4%)
Recovery (%)                                96%        95%         1%         1%        96%        96%         0%         0%
Gold equivalent ounce produced           19,022     18,593        429         2%     56,171     46,157     10,014        22%

Financial Data (in US$ millions)
Revenues                                $   8.0    $   7.6     $  0.4         5%   $   24.0    $  16.0    $   8.0        50%
Cost of sales (c)                           5.6        4.8        0.8        17%       16.2       11.8        4.4        37%
Accretion                                    --        0.1       (0.1)     (100%)       0.1        0.1         --         0%
DD&A                                        2.9        3.2       (0.3)       (9%)       9.1        7.9        1.2        15%
-----------------------------------------------------------------------------------------------------------------------------
                                           (0.5)      (0.5)        --         0%       (1.4)      (3.8)       2.4       (63%)
Exploration                                 0.5        0.5         --         0%        1.6        1.6         --         0%
Other                                        --        0.2       (0.2)     (100%)        --        0.2       (0.2)     (100%)
-----------------------------------------------------------------------------------------------------------------------------
Segment loss                            $  (1.0)   $  (1.2)    $  0.2       (17%)  $   (3.0)   $  (5.6)   $   2.6       (46%)
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>

(a)  2003 results are for the period February through September only.
(b)  Tonnes  processed  represent  100% of mine  production.
(c)  Cost of sales excludes accretion, depreciation, depletion and amortization.

The Company acquired its ownership interest in the Musselwhite underground mine,
located in northwestern Ontario, Canada, upon completion of the combination with
TVX on January 31, 2003.

THIRD QUARTER OF 2004 VS. THIRD QUARTER OF 2003

o    Gold  equivalent  production  was  marginally  higher due to improved  mill
     throughput,  which more than offset  lower  grades.  Higher  realized  gold
     prices more than offset a 3% drop in the number of ounces sold,  leading to
     a 5% increase in revenues.
o    Cost of sales  was up  largely  due to the  strengthening  Canadian  dollar
     against the U.S.  dollar in the third quarter of 2004 versus the comparable
     period in 2003.  Despite  being  higher than the prior year,  costs for the
     quarter were on target with the plan.

FIRST NINE MONTHS OF 2004 VS. FIRST NINE MONTHS OF 2003

o    Gold equivalent  production was higher by  approximately  22% mainly due to
     improved mill throughput  offsetting lower grades.  Revenues were up by 50%
     due to a 24%  increase  in the number of ounces sold and an increase in the
     realized gold price per ounce.
o    The  increase  in cost of sales was mainly due to higher  mill  throughput,
     increased fuel costs and a stronger Canadian dollar.

The  Company's  forecast for 2004 is gold  production  of  approximately  75,000
ounces.

OTHER OPERATING SEGMENTS

Kettle River (100% ownership and operator) - U.S.A.

Kinross acquired Kettle River, located in the state of Washington,  U.S.A., upon
completion of the combination  with Echo Bay on January 31, 2003. At the time of
acquisition the mine was shutdown.  The Company  recommenced  operations in late
December 2003.

o    Gold  equivalent  production  was lower than the plan for the third quarter
     and first  nine  months of 2004 by 9% and 11%,  respectively,  due to lower
     throughput at the mill and lower grade ore, partially offset by better than
     plan recovery rates.
o    Cost of sales for both the third  quarter and the first nine months of 2004
     were higher than plan due to increased fuel and consumable costs.


                                       12
<PAGE>

The  Company's  forecast for 2004 is gold  production  of  approximately  97,300
ounces.

New Britannia (50% ownership and operator) - Canada

The Company operates and owns a 50% interest in the New Britannia mine,  located
in northern  Manitoba,  Canada,  acquired in the combination with TVX on January
31, 2003.

o    Gold  equivalent  production was lower for the third quarter and first nine
     months of 2004,  respectively,  due to the  suspension  of all  development
     activities in the first quarter of 2004.
o    Cost of sales for the third  quarter  and first nine  months of 2004 versus
     the comparable periods in 2003 were lower due to a reduction in spending as
     a result of the preparation for closure activities.
o    Exploration activities have defined a small accretive discovery, which will
     be in production in the third quarter of 2005.

LUPIN (100% OWNERSHIP AND OPERATOR) - CANADA

The Company's  Lupin mine,  an  underground  mine located in Nunavut  territory,
Canada,  was acquired in the  combination  with Echo Bay on January 31, 2003. In
August 2003, the Company  announced the suspension of operations at Lupin due to
the poor economic performance of the operation over a protracted period of time.
The plant and equipment was placed on care and  maintenance  pending a review of
alternatives  for the mine. This review concluded that the development of a mine
plan to extract the shaft and crown pillars and previously developed remnant ore
was appropriate. Accordingly, the mine recommenced production on March 3, 2004.

o    Gold equivalent production for the third quarter 2004 was higher reflecting
     a full quarter of  production as compared to only  approximately  six weeks
     production as the Company announced the immediate  suspension of operations
     in August 2003.
o    Gold equivalent production for the first nine months of 2004 as compared to
     the first nine months of 2003 decreased by 16%,  reflecting only six months
     of operations versus eight months of operation in 2003.
o    Cost of sales  for the  third  quarter  and  first  nine  months of 2004 as
     compared to the similar  periods in 2003 were lower due to the reduction in
     spending  as a result  of the  suspension  of  development  activities  and
     aggressive cost control measures.

The  Company's  forecast for 2004 is gold  production  of  approximately  69,500
ounces.

Refugio (50% ownership and operator) - Chile

In 2003,  the  Company and its joint  venture  partner,  Bema Gold  Corporation,
announced  plans to  recommence  production  at the  Refugio  mine in late 2004.
Capital  expenditures  associated with the  recommencement of operations are now
expected to be  approximately  $58 million as result of construction  delays and
increased  steel and labor  costs.  The  delays are due to poor  performance  of
subcontractors,  delays in shipping of equipment and inclement  weather.  During
the third quarter of 2004,  activities  continued to be focused on  engineering,
procurement,  design and  construction  of the expanded  processing  plant.  The
Refugio  mine will be  capable  of  producing  approximately  115,000 to 130,000
ounces of gold equivalent per annum to the Company's share.

DEPRECIATION, DEPLETION AND AMORTIZATION

Depreciation,  depletion  and  amortization  totaled  $45.5  million  and $127.2
million  in the third  quarter  and  first  nine  months of 2004,  respectively,
compared  with $46.0  million and $124.0  million in the  respective  periods in
2003.  The  increase  in the first  nine  months of 2004 is  largely  due to the
inclusion of only eight months of results from the operations  acquired from TVX
and Echo Bay in 2003.

EXPLORATION AND BUSINESS DEVELOPMENT

Total  exploration and business  development  expenses incurred during the third
quarter  of 2004 and first  nine  months of 2004  were  $5.7  million  and $14.6
million, respectively, compared to $5.4 million and $18.7 million in each of the
same  periods  of  2003,  respectively.  Exploration  and  business  development
activities  were lower than  planned as certain  projects  were  delayed.  Costs
pertaining to these  activities  will increase  during the remaining  quarter to
compensate for the lower than planned first quarter spending.


                                       13
<PAGE>

The Company plans to spend a minimum of $20.0 million on its exploration program
in order to  replace  and  increase  reserves  at  existing  mines and  increase
reserves at development projects.

The ROUND MOUNTAIN pit expansion  drill program is now 85% complete.  To the end
of  the  third  quarter,  139  holes  totaling  over  100,000  feet  of  reverse
circulation  and core drilling has been completed  testing the two million ounce
inferred  resource  halo that  surrounds  the current  ultimate pit. Five target
areas have been tested  including  the Phase D (West Wall),  South  Feeder,  Pit
Bottom,  Kelsey Canyon and Fairview  area.  Results have generally been positive
with thick  intercepts  of strong  mineralization  reported in the west pit wall
area.  This phase of the  drilling  program  will be  completed  in October  and
results  will  be  incorporated  into  the  end of  year  reserve  and  resource
assessment.

At FORT KNOX  drilling  continued to provide very  encouraging  results.  In-pit
drilling  completed  in the summer  included  seven holes in the vicinity of the
high-grade  zones  previously  outlined in hole FFC04-716 as disclosed.  The new
drilling defined a previously unknown mineralized structure. Around the southern
and western edges of the pit,  holes have  encountered  new  mineralization  and
drilling will continue in the fourth quarter.

At the GURUPI  project,  six drills  continued to operate in the third  quarter.
Work focused on completing  the in-fill  drilling on the Cipoeiro and Chega Tudo
deposits and testing  exploration  targets  elsewhere on the property.  AMEC has
been commissioned to complete a feasibility study on the project,  scheduled for
completion by the end of the first quarter of 2005.

Exploration  activity  continued at Kinross  funded Joint  Ventures.  HOYLE POND
continued to deliver  encouraging  results from both the A vein discovery and UM
target  areas and  drilling of the PAMOUR  Saddle Zone  returned  wide ore grade
hits.

Elsewhere,  exploration campaigns at MUSSELWHITE,  CRIXAS and LA COIPA continued
to show promise.

GENERAL AND ADMINISTRATIVE

General and  administrative  costs include  corporate office expenses related to
the  overall  management  of the  business  which  are not part of  direct  mine
operating costs.  General and  administrative  expenses in the third quarter and
first nine  months of 2004 were $6.6  million and $22.0  million,  respectively,
compared to $4.7 million and $16.5  million in each of the same periods of 2003,
respectively. During the first quarter of 2004 the Company adopted CICA Handbook
Section 3870  "Stock-based  compensation and other  stock-based  payments" which
resulted in an increase in general and administrative expenses.

The general and administrative expenses for the third quarter of 2004 are higher
primarily due to stock based  compensation  expense of $0.3 million,  restricted
stock units expense of $0.1 million,  and increases in legal costs,  payroll and
benefit costs and insurance.

During  the  first  nine  months  of  2004,  the  Company  recorded  stock-based
compensation  expense of $1.3 million  relating to stock options and  restricted
stock  units  previously  granted  over  the  respective  vesting  periods.  The
increases  for 2004 are also due to  increases  in payroll  and  benefit  costs,
insurance, legal costs and shareholder communication costs.

OTHER INCOME - NET

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
in US$ millions                         Three months ended            Q3             Nine months ended           YTD
                                           September 30,         2004 vs 2003          September 30,         2004 vs 2003
                                       ----------------------                      ----------------------
                                          2004       2003      Change    Change %     2004       2003      Change    Change %
-----------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>        <C>       <C>          <C>       <C>        <C>        <C>           <C>
Interest and other income                 $ 1.6      $ 2.3     $ (0.7)      (30%)     $ 5.3      $ 5.1      $ 0.2         4%
Non-hedge derivative (loss) gain           (0.1)      (0.9)       0.8       (89%)       3.2        0.3        2.9       967%
Loss on redemption of convertible
   debentures                                --       (1.1)       1.1      (100%)        --       (1.1)       1.1      (100%)
Interest expense on long-term liabilities  (0.8)      (0.6)      (0.2)       33%       (1.9)      (3.1)       1.2       (39%)
Foreign exchange gain (loss)                1.6        0.3        1.3       433%       (1.6)       0.5       (2.1)        nm
-----------------------------------------------------------------------------------------------------------------------------
Total other income                        $ 2.3      $  --     $  2.3         nm      $ 5.0      $ 1.7      $ 3.3       194%
==============================================================================================================================
</TABLE>


                                       14
<PAGE>


Interest expense

Interest  expense totaled $0.8 million and $1.9 million during the third quarter
and first nine months of 2004,  respectively,  compared to $0.6 million and $3.1
million for the comparative  periods in 2003. Interest expense in the first nine
months of 2004 is  comprised  primarily  of  interest  on the  remaining  Kubaka
project loans, and the Fort Knox and Refugio capital leases. Interest expense is
expected to remain low for the  remainder of 2004, as the Company has repaid the
Industrial  Revenue  Bonds in the  first  quarter  of 2004 and the only  plan to
increase current debt levels is through the addition of $16.0 million of capital
leases in 2004 for the  Refugio  mining  fleet of which $5.5  million  was added
during the third quarter of 2004.

Non-hedge derivative gain (loss)

Premiums  received at the  inception  of written  call options are recorded as a
liability and changes in the fair value of the  liability are  recognized in the
current  period.  During the first nine  months of 2004 the  Company  recorded a
decrease to the  liability on call  options  sold of $3.2 million  compared to a
decrease of $0.3 million in 2003.

Foreign exchange gain (loss)

During the third  quarter and first nine  months of 2004 the Company  recorded a
net gain on foreign currency  translation and transactions of $1.6 million and a
net  loss  of  $1.6  million,  respectively,  compared  to  net  gains  for  the
comparative periods in 2003 of $0.3 million and $0.5 million.

The Company's  monetary  assets and  liabilities  are  translated at the rate of
exchange  prevailing  at  the  balance  sheet  date.   Non-monetary  assets  and
liabilities  are  translated  at  historical  rates.  Revenues  and expenses are
translated  at the average rate of exchange for the period.  Exchange  gains and
losses are included in income.

The foreign  exchange  risks facing the Company and the impact of changes in the
currencies in which the Company  conducts its operations in relation to the U.S.
dollar are  discussed  in the "Risk  Analysis"  section of the MD&A for the year
ended December 31, 2003.

INCOME AND MINING TAXES

The Company is subject to tax in various  jurisdictions  including  Canada,  the
United States,  Russia,  Brazil and Chile. The Company has substantial operating
losses and other tax deductions in Canada,  the United States and Chile (Refugio
mine) to shelter  future taxable  income in those  jurisdictions.  The Company's
joint venture investments in the La Coipa and Refugio mines are held in separate
Chilean companies, each of which is subject to tax.




                                       15
<PAGE>

BALANCE SHEET

Key items and statistics are highlighted below (in millions of U.S. dollars).

------------------------------------------------------------------
                                                 As at:
                                   -------------------------------
                                    September 30,     December 31,
                                        2004              2003
------------------------------------------------------------------

Unrestricted cash & equivalents   $    208.6           $    245.8
Current assets                    $    367.9           $    402.3
Total assets                      $  1,765.3           $  1,794.5
Current liabilities               $    107.8           $    150.5
Total debt (a)                    $     25.0           $     45.7
Total liabilities (b)             $    353.1           $    412.1
Shareholders' equity              $  1,412.2           $  1,382.4
                                  -------------------------------
Statistics
   Working capital                $    260.1           $    251.8
   Working capital ratio (c)           3.41x                2.67x
-----------------------------------------------------------------

(a)  Includes  long-term  debt plus the current  portion  thereof and  preferred
     shares.
(b)  Includes preferred shares and non-controlling interest.
(c)  Current assets divided by current liabilities.

During  2003,  the  Company  completed a number of  material  transactions  that
significantly  improved its balance sheet.  These events are fully  described in
the year ended  December  31,  2003 MD&A.  During the first nine months of 2004,
unrestricted  cash and  equivalents  decreased by $37.2 million.  The changes in
cash are fully described in the liquidity section that follows.

LIQUIDITY AND CAPITAL RESOURCES

The Company is highly  liquid.  During the first half of 2004, the Company fully
repaid  the  Industrial  Revenue  Bonds of  $25.0  million  owing to the  Alaska
Industrial Development and Export Authority.

Cash flow provided from  operating  activities for the quarter was $62.9 million
in 2004  compared to $36.7 million in 2003.  Cash flow  provided from  operating
activities  increased due to higher production and gold sales, a higher realized
gold price and decreased working capital requirements.

Cash flow provided from  operating  activities for the first nine months of 2004
was $103.3  million  compared to $70.8 million in 2003.  Cash flow provided from
operating  activities  increased due to a higher gold price and  increased  gold
sales and decreased due to an increase in working capital requirements.

Significant factors in the use of cash were capital development at Refugio, Fort
Knox and the Pamour project at the Porcupine Joint Venture.


                                       16
<PAGE>

CAPITAL ADDITIONS

The Company now plans to spend $167.9  million on  additions to property,  plant
and  equipment  as fully  described  in the  December  31, 2003 MD&A.  This is a
significant  increase over the $73.4 million spent in 2003.  Management believes
that,  with the  price  of gold in the $400  range,  it is the  correct  time to
upgrade and expand its mining  operations.  The  following  table  outlines  the
capital additions in 2004 by operation:


-----------------------------------------------------------
                            Year to date      Full year
                               actual          forecast
-----------------------------------------------------------


Fort Knox                  $   38.2           $   58.7
Round Mountain                  6.7                7.3
Porcupine                      14.6               25.5
Kubaka                         13.7               14.0
Paracatu                        3.1                4.0
La Coipa                        0.6                0.7
Crixas                          2.7                3.7
Musselwhite                     2.6                3.8
Refugio                        22.7               45.0
Other                           2.1                5.2
                            --------------------------
Total                      $  107.0           $  167.9
                           ===========================


LIQUIDITY OUTLOOK

As at  September  30,  2004 the  following  are the  major  uses of cash for the
remainder of 2004 outside of operating  activities and the proposed  acquisition
of Paracatu in Note 13 of the consolidated financial statements.

-----------------------------------------------------------------------------
                                                Year to date     Full year
                                                   actual         forecast
------------------------------------------------------------------------------

Site restoration                                 $   12.7        $   17.5
Exploration and business development                 14.6            20.0
Property, plant and equipment additions             107.0           167.9
                                                 -------------------------
Total                                            $  134.3        $  205.4
                                                 =========================

COMMITMENTS
<TABLE>
<CAPTION>
===========================================================================================================================
                                                                 First nine
                                                                   months
                                                        Totl        2004          2005        2006        2007      2008+
---------------------------------------------------------------------------------------------------------------------------

<S>                                                    <C>           <C>         <C>        <C>          <C>         <C>
Long-term debt obligations                             $  2.7        $ 2.7       $  --      $   --       $  --       $  --
Capital lease obligations                                 7.9          1.1         5.9         6.4          --          --
Operating lease obligations                               7.1          0.8         3.0         2.6         0.7          --
Purchase obligations                                      2.1          0.1         0.7         0.7         0.6          --
Other long-term liabilities                               2.5          0.4         0.3         0.3         0.3         1.2
---------------------------------------------------------------------------------------------------------------------------
                                                       $ 22.3        $ 5.1       $ 9.9      $ 10.0       $ 1.6       $ 1.2
===========================================================================================================================
</TABLE>

On November 20, 2003,  the Company  announced  that it had executed a definitive
acquisition  agreement with Crown Resources  Corporation  ("Crown")  whereby the
Company will acquire Crown and its wholly owned Buckhorn gold deposit located in
north central  Washington  State,  approximately  67 kilometres by road from the
Company's  Kettle River gold  milling  facility.  On December  16,  2003,  Crown
reported total proven and probable reserves,  at a gold price of $350 per ounce,
for the Buckhorn  deposit of 2.79 million  tonnes grading 11.05 grams per tonnes
containing 991,300 ounces of gold.

The current  operating  plan for Buckhorn  contemplates  the  development  of an
underground  mine  and  the  shipping  of ore to the  Kettle  River  mill.  This
development  strategy addresses the major environmental issues identified during
prior  permitting  efforts.  The Company has a strong  environmental  record and
believes that by working



                                       17
<PAGE>

diligently with federal, state and local agencies as well as other stakeholders,
the permitting process,  initiated by Crown, can be successfully  completed in a
timely manner.

The Company has agreed to issue 0.2911 of a common share of the Company for each
outstanding  common share of Crown.  The total common shares to be issued by the
Company are approximately  13.6 million.  A registration  statement covering the
issuance  of the  common  shares has been  filed  with the U.S.  Securities  and
Exchange  Commission.  It is anticipated  that the  acquisition of Crown will be
completed  following the  effectiveness  of the  registration  statement and the
approval  of the  transaction  by the Crown  shareholders.  The  transaction  is
anticipated to close by the second half of 2004.

HEDGING ACTIVITIES

Realized and unrealized gains or losses on derivative  contracts,  which qualify
for hedge accounting,  are deferred and recorded in earnings when the underlying
hedged  transaction is recognized.  Gains and losses on the early  settlement of
gold hedging  contracts are recorded as deferred  revenue or deferred  losses on
the balance sheet and included in earnings over the original  delivery  schedule
of the hedged production.  Realized and unrealized gains or losses on derivative
contracts  that do not qualify for hedge  accounting are recognized in income in
the period incurred.

The  outstanding  number  of  ounces,   average  expected  realized  prices  and
maturities for the gold commodity  derivative contracts as at September 30, 2004
are as follows:

<TABLE>
<CAPTION>
============================================================================================================
  Expected Year     Spot Deferred     Average     Call Options      Average     Put Options
  of Delivery       Ounces Hedged      Price      Sold (ounces)   Strike Price    Bought        Average
                                                                                 (ounces)     Strike Price
-----------------------------------------------------------------------------------------------------------
<S>                      <C>           <C>            <C>               <C>        <C>             <C>
2004                        --            --                --            --       37,500          $ 250
2005                        --            --                --            --      150,000          $ 250
2006                        --            --                --            --      150,000          $ 250
---------------------------------------------------------------------------------------------------------
Total                       --            --                --            --      337,500          $ 250
=========================================================================================================
</TABLE>


At December 31, 2003, the Company had deferred contracts for the sale of 175,000
ounces of gold with a fair value unrealized loss of $24.1 million,  however this
loss was not  recognized on the  consolidated  financial  statements.  Beginning
January 1, 2004,  these  contracts,  while still  providing  an economic  hedge,
failed to meet the requirements for formal hedge accounting. As such, changes in
fair value from that point until maturity are included in current  earnings.  In
addition,  the  unrealized  loss of $24.1  million is  recognized in earnings in
connection  with the original  maturity dates of the  contracts.  During the six
months  ended June 30,  2004 the  Company  delivered  85,000  ounces  into these
contracts and  financially  closed out the remaining  90,000 ounces at a cost of
$9.6 million.  However,  for  accounting  purposes the portion of the unrealized
loss, as determined  on December 31, 2003,  relating to contracts  with original
maturity  dates after  September 30, 2004 remains  deferred on the balance sheet
and will only be  recognized  into  earnings  in  accordance  with the  original
maturity dates of the contracts.

At September  30, 2004,  the Company's  consolidated  foreign  currency  program
consists of:

<TABLE>
<CAPTION>
=======================================================================================================================
Canadian Dollars                Maturity Period   Quantity (millions       Average Price     Fair value (millions of
                                (to the year)      of U.S. Dollars)        (C$/USD)                    U.S. Dollars)
-----------------------------------------------------------------------------------------------------------------------
<S>                                 <C>              <C>                     <C>                     <C>
Fixed forward contracts             2004             $      5.0              1.4004                  $  0.5
                                    2005                   10.0              1.4322                     1.3
-----------------------------------------------------------------------------------------------------------------------
Total                                                $     15.0              1.4216                  $  1.8
=======================================================================================================================
</TABLE>


The Company uses these fixed forward  contracts to partially  hedge its Canadian
dollar denominated mine operating costs and general and administrative costs. At
December 31, 2003, the Company had fixed forward  contracts to sell U.S. dollars
and buy  Canadian  dollars of CDN$28.4  million at an average  exchange  rate of
1.4221.  The  unrealized  gain at December 31, 2003 was $1.8 million.  Beginning
January 1, 2004,  these  contracts,  while still  providing  an economic  hedge,
failed to meet the requirements for formal hedge accounting. As such, changes in
fair value from that point until maturity are included in current earnings.  The
unrealized gain of $1.8


                                       18
<PAGE>

million is recognized in earnings in connection with the original maturity dates
of the contracts.  During the nine months ended  September 30, 2004, the Company
recognized  into  earnings  $0.9 million of the  deferred  gain.  The  remaining
deferred  gain will be recognized  into  earnings  during the first half of 2005
($0.9 million).  Gains from the strengthening of the Canadian dollar against the
U.S. dollar since January 1, 2004 have been netted against  operating costs from
the Company's  Canadian mines and against  Canadian  general and  administrative
expenses in the period incurred.

For  details  on the  hedging  activities  please  refer  to  Note 4  "Financial
instruments" of the accompanying consolidated financial statements.

CRITICAL ACCOUNTING POLICIES

In the annual MD&A for the year 2003, there is a full discussion and description
of the critical accounting policies  appropriate to the Company. The preparation
of the Company's  consolidated  financial statements in conformity with CDN GAAP
requires  management  to make  estimates  and  assumptions  that affect  amounts
reported in the consolidated  financial  statements and the accompanying  notes.
These are fully described in the 2003 annual MD&A.

During  the first nine  months of 2004,  the  Company  adopted  four  accounting
changes:

     1.   Stock-based compensation
     2.   Asset retirement obligations
     3.   Consolidation of variable interest entities
     4.   Flow through shares

The  description and impact of these four changes are described in Note 3 of the
accompanying  consolidated  financial  statements for the period ended September
30, 2004, which are included in the Quarterly  Report.  None of these accounting
changes  had a material  impact on the  Company's  third  quarter and first nine
months of 2004 results.


OUTLOOK

During  the first  nine  months  of 2004,  we were  able to  exceed  budget  for
production  and  importantly  exceed our  expectations  with respect to our mine
operating costs.  This is a result of a strong commitment to cost containment by
our operating teams, and a result of our continuous  improvement program.  Based
on the results of the first nine months  versus  plan,  we continue to expect to
produce approximately 1.7 million ounces of gold equivalent production for 2004.
We have increased our expectation  for operating costs to reflect  unanticipated
increases  in fuel and power costs and other  consumables.  Our  investments  in
exploration at our existing  operations  continue to yield promising results, as
does the extensive infill drill program at Gurupi in Brazil.

In 2003, we announced plans to expand and recommission the Refugio mine, restart
the Kettle  River  operation,  and expand the  Porcupine  Joint  Venture mill to
accommodate  the new ore feed from the  Pamour  open pit.  The  Refugio  mine is
scheduled to achieve full planned  production  during the first quarter of 2005.
The PJV expansion is on time and below budget.

Reserve  replacement and growth is a key focus,  and Kinross expects to increase
reserves for the Company this year.  Growth will come from the Gurupi project in
Brazil and from completing the merger with Crown Resources, which is expected to
be completed by the end of the fourth quarter. Completing the acquisition of the
remaining  portion of Paracatu from Rio Tinto will add significantly to year end
reserves as well.

Overall,  capital expenditures are expected to increase marginally over previous
guidance of $165.0 million to $167.9 million.


                                       19
<PAGE>

CONSOLIDATED BALANCE SHEETS
(expressed in millions of U.S. dollars) (unaudited)

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                                                              AS AT          AS AT
                                                                          SEPTEMBER 30,   DECEMBER 31,
                                                                              2004            2003
--------------------------------------------------------------------------------------------------------
                                                                          Restated (a)    Restated (a)
<S>                                                                      <C>                <C>
ASSETS
 Current assets
   Cash and cash equivalents                                             $    208.6         $    245.8
   Restricted cash                                                              1.3                5.1
   Short-term investments                                                       5.3                 --
   Marketable securities                                                        0.1                0.1
   Accounts receivable and other assets                                        34.1               42.1
   Inventories                                                                118.4              109.2
                                                                         -----------------------------
                                                                              367.8              402.3
 Property, plant and equipment                                                993.7            1,010.4
 Goodwill                                                                     342.3              342.3
 Long-term investments                                                         31.6                2.1
 Future income and mining taxes                                                 1.0                1.5
 Deferred charges and other long-term assets                                   28.8               35.9
                                                                         -----------------------------
                                                                         $  1,765.2         $  1,794.5
                                                                         =============================
LIABILITIES
 Current liabilities
   Accounts payable and accrued liabilities                              $     88.5         $    101.9
   Current portion of long-term debt                                            4.1               29.4
   Current portion of reclamation and remediation obligations                  15.1               19.2
                                                                         -----------------------------
                                                                              107.7              150.5
 Long-term debt                                                                 5.3                0.7
 Reclamation and remediation obligations                                      108.7              111.1
 Future income and mining taxes                                               109.3              126.6
 Other long-term liabilities                                                    5.7                6.9
 Redeemable retractable preferred shares                                        2.5                3.0
                                                                         -----------------------------
                                                                              339.2              398.8
                                                                         -----------------------------
NON-CONTROLLING INTEREST                                                        0.7                0.7
                                                                         -----------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                             13.1               12.6
                                                                         -----------------------------
COMMON SHAREHOLDERS' EQUITY
 Common share capital and common share purchase warrants                    1,786.7            1,783.5
 Contributed surplus                                                           34.8               30.0
 Accumulated deficit                                                         (407.3)            (429.1)
 Cumulative translation adjustments                                            (2.0)              (2.0)
                                                                         -----------------------------
                                                                            1,412.2            1,382.4
                                                                         -----------------------------
                                                                         $  1,765.2         $  1,794.5
                                                                         =============================

TOTAL ISSUED AND OUTSTANDING NUMBER OF COMMON SHARES (MILLIONS)               346.6              345.6
-------------------------------------------------------------------------------------------------------

          The accompanying notes are an integral part of these consolidated financial statements
</TABLE>

(a) See Note 2


                                                   20
<PAGE>

CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in millions of U.S. dollars, except per share amounts) (unaudited)
For the three and nine months ended September 30,

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
                                                                        THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                            SEPTEMBER 30,                SEPTEMBER 30,
                                                                  --------------------------------------------------------------
                                                                       2004          2003              2004          2003
--------------------------------------------------------------------------------------------------------------------------------
                                                                  Restated (a)    Restated (a)      Restated (a)     Restated (a)
<S>                                                               <C>               <C>              <C>               <C>
REVENUE AND OTHER INCOME
 Metal sales                                                      $   174.6         $  153.8         $   487.6         $   428.6

OPERATING COSTS AND EXPENSE
 Cost of sales (excludes accretion, depreciation, depletion
  and amortization)                                                   107.7             94.3             298.2             279.6
 Accretion                                                              2.2              2.3               6.6               6.6
 Depreciation, depletion and amortization                              45.5             46.0             127.2             124.0
                                                                  --------------------------------------------------------------
                                                                       19.2             11.2              55.6              18.4
 Other operating expenses                                               3.0              9.3               6.9              16.1
 Exploration and business development                                   5.7              5.4              14.6              18.7
 General and administrative                                             6.6              4.7              22.0              16.5
 Impairment of property, plant and equipment                            --               4.4               --                4.4
 (Gain) loss on disposal of assets                                     (0.7)            (0.3)             (1.4)              0.2
                                                                  --------------------------------------------------------------
OPERATING EARNINGS (LOSS)                                               4.6            (12.3)             13.5             (37.5)
 Other income (expense) - net                                           2.3              --                5.0               1.7
                                                                  --------------------------------------------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                            6.9            (12.3)             18.5             (35.8)
 Income and mining taxes recovery (expense)                             7.6             (2.8)              6.4              (3.9)
 Non-controlling interest                                               0.1              --                --               (0.1)
 Dividends on convertible preferred shares of subsidiary               (0.2)            (0.2)             (0.6)             (0.6)
                                                                  --------------------------------------------------------------
NET EARNINGS (LOSS) FOR THE PERIOD                                $    14.4         $  (15.3)        $    24.3         $   (40.4)
                                                                  ===============================================================
ATTRIBUTABLE TO COMMON SHAREHOLDERS:
 Net earnings (loss) for the period                               $    14.4         $  (15.3)        $    24.3         $   (40.4)
 Increase in equity component of convertible debentures                 --              (2.2)              --               (6.5)
 Gain on redemption of convertible debentures                           --              16.5               --               16.5
                                                                  --------------------------------------------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS           $    14.4         $   (1.0)        $    24.3         $   (30.4)
                                                                  ===============================================================
EARNINGS (LOSS) PER SHARE
 Basic                                                            $    0.04         $    --          $    0.07         $   (0.10)
 Diluted                                                          $    0.04         $    --          $    0.07         $   (0.10)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING (millions)
 Basic                                                                346.2            323.4             346.0             297.4
 Diluted                                                              346.5            323.4             346.4             297.4
--------------------------------------------------------------------------------------------------------------------------------

          The accompanying notes are an integral part of these consolidated financial statements
</TABLE>

(a) See Note 2


                                                   21
<PAGE>

CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in millions of U.S. dollars) (unaudited)
For the three and nine months ended September 30

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                             THREE MONTHS ENDED              NINE MONTHS ENDED
                                                                                SEPTEMBER 30,                  SEPTEMBER 30
                                                                        ------------------------------------------------------------
                                                                            2004            2003           2004            2003
------------------------------------------------------------------------------------------------------------------------------------
                                                                        Restated (a)    Restated (a)     Restated (a)   Restated (a)

<S>                                                                     <C>              <C>              <C>              <C>
NET INFLOW (OUTFLOW) OF CASH RELATED TO THE FOLLOWING ACTIVITIES:
OPERATING:
Net earnings (loss)                                                     $   14.4         $  (15.3)        $   24.3         $  (40.4)
Items not affecting cash:
 Depreciation, depletion and amortization                                   45.5             46.0            127.2            124.0
 Impairment of property, plant and equipment                                 --                4.4            --                4.4
 (Gain) loss on disposal of assets                                          (0.7)            (0.3)            (1.4)             0.2
 Future income and mining taxes                                            (11.3)            (2.8)           (17.2)            (8.3)
 Deferred revenue recognized                                                 2.9             (0.6)             1.8             (1.7)
 Other                                                                      (5.1)             1.4             (4.8)             4.6
 Changes in operating assets and liabilities:
   Accounts receivable and other assets                                      2.6              1.7              4.0             15.9
   Inventories                                                              12.2              1.9            (12.3)            (7.3)
   Accounts payable and accrued liabilities                                  2.4              0.3            (18.3)           (20.6)
                                                                        ------------------------------------------------------------
CASH FLOW PROVIDED FROM OPERATING ACTIVITIES                                62.9             36.7            103.3             70.8
                                                                        ------------------------------------------------------------
INVESTING:
 Additions to property, plant and equipment                                (46.8)           (27.4)          (107.0)           (52.3)
 Business acquisitions, net of cash acquired                                 --               --              --              (81.9)
 Proceeds on sale of marketable securities                                  10.9              0.5              0.7              1.1
 Additions (disposals) of long-term investments and other assets            (3.5)             1.9            (16.9)            (4.3)
 Proceeds from the sale of property, plant and equipment                     0.2              0.2              1.0              0.2
 Additions to short-term investments                                        (5.3)             --              (5.3)            --
 Decrease (increase) in restricted cash                                     (0.1)             --               3.7             37.4
                                                                        ------------------------------------------------------------
CASH FLOW USED IN INVESTING ACTIVITIES                                     (44.6)           (24.8)          (123.8)           (99.8)
                                                                        ------------------------------------------------------------
FINANCING:
 Issuance of common shares                                                   0.6            147.6              3.6            150.9
 Redemption of convertible debentures                                        --            (144.8)             --            (144.8)
 Acquisition of convertible preferred shares of subsidiary company           --              (0.2)             --              (0.2)
 Reduction of debt component of convertible debentures                       --              (1.4)             --              (4.2)
 Proceeds from issue of debt                                                 1.2              --               5.6             --
 Repayment of debt                                                          (0.3)            (0.8)          (26.3)           (10.0)
                                                                        ------------------------------------------------------------
CASH FLOW PROVIDED FROM (USED IN) FINANCING ACTIVITIES                       1.5              0.4            (17.1)            (8.3)
                                                                        ------------------------------------------------------------
Effect of exchange rate changes on cash                                      1.1              3.9              0.4              7.9
                                                                        ------------------------------------------------------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                            20.9             16.2            (37.2)           (29.4)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                             187.7            125.0            245.8            170.6
                                                                        ------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                $  208.6         $  141.2         $  208.6         $  141.2
                                                                        ============================================================
SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid for:
    Interest                                                            $    0.1         $    2.0         $    0.7         $    6.4
    Income taxes                                                        $    2.7         $    1.8         $    9.0         $    5.5
------------------------------------------------------------------------------------------------------------------------------------

          The accompanying notes are an integral part of these consolidated financial statements
</TABLE>


(a) See Note 2


                                                   22
<PAGE>

CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY
(expressed in millions of U.S. dollars) (unaudited)
For the nine months ended September 30
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
                                                  COMMON                                                CUMULATIVE
                                                   SHARE      CONTRIBUTED   CONVERTIBLE   ACCUMULATED   TRANSLATION
                                                  CAPITAL       SURPLUS      DEBENTURES     DEFICT      ADJUSTMENTS      TOTAL
---------------------------------------------------------------------------------------------------------------------------------
                                                                                         Restated (a)
<S>                                              <C>              <C>          <C>          <C>            <C>         <C>
BALANCE, DECEMBER 31, 2002 (RESTATED)            $ 1,058.5        $ 12.9       $ 132.3      $ (773.0)      $ (23.4)    $   407.3
Reduction of stated capital                         (761.4)           --            --         761.4            --            --
Issuance of common shares                          1,450.1            --            --            --            --       1,450.1
Increase in equity component of convertible
 debentures                                             --            --           6.7          (6.5)           --           0.2
Redemption of convertible debentures                    --          16.5        (139.0)            -            --        (122.5)
Net loss for the period                                 --            --            --         (40.4)           --         (40.4)
Cumulative translation adjustments                      --            --            --            --          24.8          24.8
                                              -----------------------------------------------------------------------------------
BALANCE, SEPTEMBER 30, 2003                      $ 1,747.2        $ 29.4       $    --      $  (58.5)      $   1.4     $ 1,719.5
                                              -----------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 2003 (RESTATED)            $ 1,783.5        $ 30.0       $    --      $ (429.1)      $  (2.0)    $ 1,382.4
Cumulative effect of recording the fair
value of stock                                         0.2           2.3            --          (2.5)           --            --
                                              -----------------------------------------------------------------------------------
BALANCE, JANUARY 1, 2004                           1,783.7          32.3            --        (431.6)         (2.0)      1,382.4
Issuance of common shares                              4.2            --            --            --            --           4.2
Stock-based compensation expense (b)                    --           1.3            --            --            --           1.3
Net earnings for the period                             --            --            --          24.3            --          24.3
Transfer of fair value of expired options             (1.2)          1.2            --            --            --            --
                                              -----------------------------------------------------------------------------------
BALANCE, SEPTEMBER 30, 2004                      $ 1,786.7        $ 34.8       $    --      $ (407.3)      $  (2.0)    $ 1,412.2
---------------------------------------------------------------------------------------------------------------------------------

          The accompanying notes are an integral part of these consolidated financial statements
</TABLE>

(a) See Note 2
(b) Includes stock option and restricted stock unit expense


                                                   23
<PAGE>

                            KINROSS GOLD CORPORATION
           NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
             FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30
  (millions of U.S. dollars, except per share amounts, unless otherwise stated)

1. BASIS OF PRESENTATION

   The interim consolidated financial statements (the "financial statements") of
   Kinross Gold  Corporation  (the  "Company")  have been prepared in accordance
   with the accounting  principles  and methods of application  disclosed in the
   restated  consolidated  financial  statements for the year ended December 31,
   2003, except for those indicated below.

   The accompanying interim unaudited  consolidated financial statements include
   all adjustments that are, in the opinion of management,  necessary for a fair
   presentation.  These  financial  statements  do not include  all  disclosures
   required by Canadian  generally accepted  accounting  principles ("CDN GAAP")
   for annual consolidated  financial  statements and accordingly should be read
   in conjunction with the Company's restated financial  statements for the year
   ended  December 31, 2003  included in the financial  statements  for the year
   ended  December 31, 2004,  which were filed with all the Canadian  securities
   regulatory  agencies  on  November  30,  2005.  In  addition,  these  interim
   consolidated  financial  statements  include  impacts of the  restatement  as
   disclosed in Note 2.

   COMPARATIVE FIGURES

   Certain 2003 figures in the  accompanying  unaudited  consolidated  financial
   statements have been reclassified to conform to the 2004 presentation.

2. RESTATEMENT

PURCHASE PRICE ALLOCATION AND GOODWILL
On January 31, 2003 the Company  acquired 100% of the outstanding  shares of TVX
Gold Inc.  ("TVX")  and Echo Bay  Mines  Ltd.  ("Echo  Bay").  The  consolidated
financial  statements  presented  for the year ended  December  31, 2003 and the
interim  periods  of 2003  and 2004  have  been  restated  with  respect  to the
accounting for the assets and liabilities acquired by the Company in the TVX and
Echo Bay transaction (the "Acquisitions").

The restatements are based upon independent valuations of the acquired assets as
of the acquisition  date January 31, 2003 and December 31, 2003,  which resulted
in: (i) a revision of the  allocation  of the  purchase  price to the  reserves,
resources and certain property acquired in the Acquisitions;  (ii) consequential
changes in  depreciation,  depletion and  amortization;  (iii) a revision of the
allocation of goodwill at the acquisition  date to reporting assets for purposes
of  impairment  testing;  and (iv) a revision  of the  impairment  of assets and
goodwill as of December 31, 2003,  leading to certain  impairments  described in
detail below. The overall effect of the restatement on the interim  consolidated
financial  statements for the nine months ended  September 30, 2003 and 2004 are
summarized as follows:

    (a) Reduction  of  $181.3  million  in  goodwill  from  the  $918.0  million
        initially  recorded on the Acquisitions to $736.7 million resulting from
        an increase in property,  plant and equipment and mineral interests, net
        of related future income tax liabilities;
    (b) Increase in depreciation,  depletion and  amortization  expenses of $6.0
        million and $5.2 million, respectively;
    (c) Recognition  of  impairment  losses with respect to goodwill and mineral
        interests of $394.4 million and $10 million,  respectively, for the year
        ended December 31, 2003; and
    (d) Reduction in income taxes  related to (b) and (c) above of $11.6 million
        for the year ended December 31, 2003.

All amounts in the accompanying notes to the consolidated  financial  statements
have been adjusted to give effect to the impact of these restatements.

ORIGINAL VALUATION METHODOLOGY
The  original   valuation  of  the  assets  and  liabilities   acquired  in  the
Acquisitions  was  undertaken  and  completed  by the  Company  and  included an
independent  appraisal of plant and  equipment.  The  allocation of the purchase
price to the fair value of the assets and  liabilities  resulted in an excess of
the  purchase  price  over the fair  value of the  identifiable  assets  of $918
million.  This residual was recorded as goodwill.  The Company assigned goodwill
to the Exploration and Acquisitions and Corporate reporting units, which was not
amortized.  In making the assignment,  the Company reviewed examples of previous
applications of purchase  accounting in the mining industry and applied Canadian
Institute of Chartered Accountants ("CICA") Handbook Section 3062, "Goodwill and
Other Intangible  Assets" ("Section  3062"),  for purposes of Canadian GAAP, and
Statement of Financial  Accounting  Standards  ("SFAS") 142, "Goodwill and Other
Intangible Assets" ("SFAS 142"), for purposes of U.S. GAAP.

The  allocation  of  goodwill  primarily  to the  Exploration  and  Acquisitions
reporting  unit was intended to  represent  the increase in value of the Company
after  the  Acquisitions,  resulting  primarily  from  the  enhancement  of  the
Company's  ability to sustain and increase its mineral  resources  and therefore
increase its future production  capabilities.  The original goodwill  impairment
testing  methodology  was based on measuring the Company's  success in achieving
additions to proven and probable  reserves  compared to  predetermined  expected
average annual increases over a specified period of time.

When the  Company  tested the  goodwill  for  impairment  based on its  original
methodology,  it  concluded  that  there was no  impairment  of  goodwill  as at
December 31, 2003.

INITIAL REVISION OF ORIGINAL VALUATION METHODOLOGY
Subsequent to  discussions  with and comments from  regulatory  agencies and the
Company's further review of applicable  accounting  guidance,  at the end of the
third  quarter of 2004,  the Company  revised  its  allocation  of goodwill  and
impairment testing  methodology and reassigned the goodwill  originally computed
($918 million) to the significant reporting units acquired in the Acquisitions.

These  reporting  units  represented  the Company's  interests in five operating
mines and three development  properties.  The initial revision in the allocation
of  goodwill  to  reporting  units  was  based  on  the  premise  that  goodwill
represented  a market  participant's  view as to the  potential for discovery of
additional  mineable ounces of gold from properties or mining rights acquired in
the acquisitions in excess of those reflected in the purchase price allocated to
identifiable  assets, and to the potential for increased revenues as a result of
higher realized gold prices.  On testing  goodwill for  impairment,  the revised
methodology  determined  fair value of a reporting  unit using a net asset value
multiple that Kinross  concluded a market  participant  would use in determining
fair value.  The net asset value was in turn computed  based on discounted  cash
flows over the projected life of each mine in the case of operating  mines or in
the case of development properties using a per ounce value based on market data.

Using this revised goodwill  allocation and impairment  testing  methodology the
Company determined that there was no goodwill or asset impairment as at December
31, 2003. However, based on this goodwill allocation and the Company's


                                       24
<PAGE>

negotiations  to purchase the  remaining 51% of the Paracatu  mine,  the Company
recognized  a goodwill  impairment  charge of $143  million in the three  months
ended  September  30,  2004.  As  discussed  below,  this  previously   recorded
impairment charge has been reversed as part of the restatement.

FURTHER REVISION OF VALUATION, ALLOCATION AND IMPAIRMENT METHODOLOGY

In January 2005,  following  additional comments from regulatory  agencies,  the
Company engaged an independent  valuation advisory firm ("the Firm") to provide:
(i) a valuation of the significant  assets and  liabilities  acquired as part of
the  Acquisitions;  (ii) an allocation  to the  reporting  units of the goodwill
resulting  from the  excess of the  purchase  price  over the fair  value of the
identifiable  assets and liabilities  acquired in the Acquisitions;  and (iii) a
valuation  of the assets and  liabilities  acquired in the  Acquisitions  and an
assessment of the resulting goodwill for impairment as at December 31, 2003.

The valuation  methodology  employed by the Firm took into  consideration  value
beyond proven and probable reserves ("VBPP") as defined by the newly issued CICA
Emerging Issues  Committee  ("EIC")  Abstract No 152 "Mining Assets - Impairment
and Business  Combinations"  ("EIC-152").  Similar accounting  guidance was also
issued in the United States.  This guidance requires that a mining entity should
include VBPP and the effect of anticipated  fluctuations  in the future price of
minerals when allocating the purchase price of a business  combination to mining
assets acquired and also when testing mining assets for impairment.

The most significant  identifiable  assets acquired in the Acquisitions were the
property,  plant and equipment and mineral interests. The original independently
appraised  values of plant and equipment  were  maintained.  The Firm valued the
mineral interests that consisted of: proven and probable reserves;  measured and
indicated  resources and inferred resources as defined under National Instrument
43-101"Standards   for  disclosure  of  mineral  projects"  issued  by  Canadian
Securities  Administrators,  using a discounted cash flow approach. In addition,
the Company acquired land with mineral rights ("exploration properties"),  which
is the area adjacent and contiguous to existing  mines or properties  containing
reserves,   resources  or  without  any  identified   exploration  targets.  The
exploration  properties  were valued  based on prices paid for similar  types of
properties in market transactions.

The independent  valuation of the significant assets and liabilities acquired in
the Acquisitions  resulted in a revision to the fair values initially  estimated
as of  the  acquisition  date  and  a  consequent  reduction  of  goodwill.  The
independent  valuation  concluded that the resulting  goodwill  represented  the
following:

o   The expected  ability of the Company to increase its reserves and  resources
    based on its development of the identified  exploration  targets existing on
    the properties which were part of the Acquisitions;
o   The optionality (real option value associated with the portfolio of acquired
    mines as well as each  individual  mine) make  exploration  decisions on the
    acquired  properties and other properties based upon changes in gold prices,
    including  the ability to develop  additional,  higher-cost  reserves and to
    intensify  efforts to develop the more  promising  acquired  properties  and
    reduce  efforts at developing the less promising  acquired  properties  when
    gold prices increase in the future; and
o   The going  concern  value of the  Company's  capacity to replace and augment
    reserves through  completely new discoveries whose value is not reflected in
    any of the other valuations of existing mining assets.

The Company  accepted the results of the valuation and  accordingly  revised its
impairment  testing  methodology  to ensure  consistency  with the allocation of
purchase price and the related goodwill as determined in the valuation.

In determining the basis of assigning goodwill to reporting units as at the date
of  acquisition,  the  expected  additional  value  associated  attributable  to
exploration  potential  was  quantified  for each  reporting  unit  based on the
specific  geological  attributes  of the mineral  property  and based on data of
market transactions for similar types of properties.  The values associated with
optionality  and going  concern  value  could  not be  separately  computed  and
accordingly  the balance of goodwill  was  assigned to  reporting  units using a
relative fair value methodology.

IMPAIRMENT TESTING OF LONG-LIVED ASSETS
The Company tested its long-lived  assets,  including tangible mineral interests
and plant and equipment for  impairment as at December 31, 2003 and  accordingly
has  reflected  in the restated  consolidated  financial  statements  impairment
charges of $10.0  million as at December  31,  2003.  These  impairment  charges
relate to mineral interests and exploration properties.

The Company will reassess long-lived assets for recoverability if production and
depletion,  changes  in reserve  estimates,  decreases  in gold  prices or other
factors  indicate that the carrying  value may not be  recoverable.  Exploration
properties are also tested for  impairment  annually on a fair value basis based
on market  comparable data.  Impairment is recognized in the amount by which the
fair value is less than the carrying value.


                                       25
<PAGE>

IMPAIRMENT TESTING OF GOODWILL
In  accordance  with CICA  Section.  3062 and SFAS 142,  the Company  tested its
goodwill for  impairment  as at December  31, 2003 and has  recorded  impairment
charges  of  $394.4  for the year  ended  December  31,  2003,  in the  restated
consolidated financial statements.

The  valuations  performed at December 31, 2003  computed the fair value of each
reporting unit. The fair value of the reporting unit was based on the fair value
of the  mineral  interests  computed  using a  discounted  cash flow  method and
assumptions  similar to those used on the  acquisition  date at January 31, 2003
and included  expected  additional  value based on the expected  ability to find
additional ore. However,  no value could be computed for the optionality and the
going concern value,  which were  contributors  to goodwill at January 31, 2003.
This  inability to directly  value  optionality  and going concern value results
primarily  from the  requirements  under  Section  3062 and SFAS 142 to allocate
goodwill to reporting units, which in the case of mining companies are typically
individual  mine sites.  The Company  would have relied on  real-option  pricing
methodology had the models been well enough  specified to support  reliable fair
values.  In a single  mining  operation any going concern value would have to be
finite  and  limited  to  the  life  of  the  mineral   that  can  be  extracted
economically. However, even if such models had been readily available, empirical
evidence  suggests  that  market   participants  do  not  perceive   significant
real-option  or going  concern  value  at the mine  site  level,  which  are the
reporting units for goodwill impairment testing purposes.

In the future,  the Company will test goodwill for impairment at least annually,
unless all of the following criteria have been met:

(a) The assets and liabilities  that make up the reporting unit have not changed
    significantly since the most recent fair value determination.
(b) The most recent,  bottom-up  fair value  determination  of fair values for a
    reporting  unit resulted in an amount that  exceeded the carrying  amount of
    the reporting unit by a substantial margin.
(c) Based on an analysis of events that have  occurred  and  circumstances  that
    have changed since the most recent fair value determination,  the likelihood
    that a current  fair  value  determination  would be less  than the  current
    carrying amount of the reporting unit is remote.

In  accordance  with CICA  Section  3062 and SFAS 142,  the Company will also be
alert  for  "triggering  events"  that  would  indicate  the  need to  test  for
impairment more frequently than annually.  In addition to the triggering  events
specifically  identified in the relevant accounting  pronouncement,  significant
changes  in gold  prices  and  changes  in the  demand  for gold  would  also be
considered triggering events.

The Company uses the  following  methodology  to test for  goodwill  impairment.
First, the Company determines the fair value of the reporting unit, which is the
sum of the following:

o   Discounted nominal cash flows of reserves and resources.
o   Fair value of exploration properties based on market comparable data.
o   Expected  additional value from identified  exploration  targets  calculated
    based  on  management's  estimates  of the  ounces  at such  targets  at the
    impairment  testing  date,  corroborated  by an  analysis  of the  Company's
    three-year  historical  experience with additions to reserves and resources,
    and  prices  in  market  transactions   involving  properties  with  similar
    exploration targets.

IMPACT OF INDEPENDENT VALUATIONS AS AT JANUARY 31, 2003 (ACQUISITION DATE)
The following  table shows the impact of the revised  allocation of the purchase
price:


                                       26
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------- ------------- -------------
                                                                            AS PREVIOUSLY
                                                                             REPORTED (A)     REVISED        CHANGE
------------------------------------------------------------------------------------------- ------------- -------------
<S>                                                                         <C>              <C>           <C>
Common shares of Kinross issued to Echo Bay and TVX shareholders            $       177.8    $     177.8   $        --
Value of Kinross common stock per share                                              7.14           7.14            --
------------------------------------------------------------------------------------------- ------------- -------------
Fair value of the Company's common stock issued                             $     1,269.8    $   1,269.8   $        --

Plus - fair value of warrants and options assumed by the Company                     29.3           29.3            --
Plus - direct acquisition costs incurred by the Company                              12.6           12.6            --
Plus - the Company's previous 10.6% ownership interest in Echo Bay                    7.0            7.0            --
------------------------------------------------------------------------------------------- ------------- -------------
Total purchase price                                                        $     1,318.7    $   1,318.7   $        --
Plus - Fair value of liabilities assumed by Kinross
     Accounts payable and accrued liabilities                                        76.7           76.7            --
     Long-term debt, including current portion                                        2.2            2.2            --
     Site restoration cost accruals, including current portion                       63.0           63.0            --
     Future income tax liabilities                                                   52.8          135.9          83.1
     Other long-term liabilities                                                      0.1            0.1            --
     Liability with respect to TVX Newmont JV assets acquired                        94.5           94.5            --
Less - Fair value of assets acquired by Kinross                                                       --
     Cash                                                                           (44.2)         (44.2)           --
     Restricted cash                                                                (21.4)         (21.4)           --
     Marketable securities                                                           (2.4)          (2.4)           --
     Accounts receivable and other assets                                           (22.8)         (22.8)           --
     Inventories                                                                    (47.9)         (47.9)           --
     Property, plant and equipment (b)                                             (213.7)        (168.3)         45.4
     Mineral interests                                                             (283.9)        (593.7)       (309.8)
     Long-term investments and other non-current assets                             (53.7)         (53.7)           --
------------------------------------------------------------------------------------------- ------------- -------------
Residual purchase price allocated to goodwill                               $       918.0    $     736.7   $    (181.3)
------------------------------------------------------------------------------------------- ------------- -------------

(a)     As previously disclosed in 2003 financial statements.
(b)     Reclassification to mineral interests.
</TABLE>

IMPACT OF INDEPENDENT VALUATIONS AND IMPAIRMENT TESTING AT DECEMBER 31, 2003
Based on  independent  valuations  as of December  31,  2003 and the  impairment
testing  methodology  described  above,  the  Company  recorded  impairments  of
long-lived assets of $10.0 million relating to mineral interests and exploration
properties and goodwill impairment of $394.4 million for the year ended December
31, 2003. See Note 6 for details of goodwill impairment by reportable segment.

RECLAMATION AND REMEDIATION OBLIGATIONS
The CICA issued Handbook Section 3110 "Asset Retirement  Obligations"  ("Section
3110") sets out new accounting requirements for the recognition, measurement and
disclosure of liabilities  for asset  retirement  obligations  (reclamation  and
remediation  obligations)  and the  related  asset  retirement  cost.  This  new
standard is to be applied to fiscal years,  which  commenced on or after January
1, 2004.  The details on the adoption of this  standard are  described in Note 4
and Note 10.  Effective  January  1,  2004,  the  Company  adopted  the  initial
recognition  and  measurement  provisions  of  Section  3110  and  applied  them
retroactively  with a  restatement  of 2003 and 2002  comparative  figures.  The
tables shown below include the impact of this retroactive application of Section
3110.  The  impact of  adoption  for the year  ended  December  31 2003,  was an
increase  in  property,  plant and  equipment  by $45.4  million  and  increased
reclamation  and  remediation  obligations  by $10.6 million to reflect the fair
value of the  asset  and the  related  liability.  Net  loss for the year  ended
December 31, 2003 decreased by $3.1 million.

FINANCIAL INSTRUMENTS AND HEDGING
Effective  January  1,  2004,  the  Company  adopted  Accounting   Guideline  13
("AcG-13"),   "Hedging   Relationships",   which  provides  guidance  concerning
documentation and  effectiveness  testing for derivative  contracts.  Derivative
instruments  that do not qualify as a hedge under AcG-13,  or are not designated
as a hedge, are recorded on the balance sheet at fair value with changes in fair
value recognized in earnings.  Upon the adoption of AcG-13,  certain  derivative
instruments that had been previously  accounted for as hedges failed to meet the
requirements of AcG-13 for formal hedge  accounting.  Therefore,  the previously
financial results were restated to show the related impact. For the three months
ended  September  30,  2004,  the impact of this  derecognition  was to increase
Accounts receivable and other assets by $2.5 million,  decrease Cost of sales by
$0.6 million,  decrease General and  administrative  expense by $0.3 million and
increase  Metal sales by $1.6 million.  For the nine months ended  September 30,
2004, the impact of this derecognition was to increase


                                       27
<PAGE>

Accounts  receivable and other assets by $4.4 million and decrease Cost of sales
by $0.7 million, General and administrative expense by $0.4 million and increase
Metal sales by $3.3 million.

IMPACT OF RESTATEMENT ON CONSOLIDATED FINANCIAL STATEMENTS
The effect of the revised  valuations,  allocation  of  goodwill  and testing of
impairment and adoption of Section 3110 on the consolidated balance sheets as of
December  31, 2003 and 2004 and  consolidated  statement of  operations  for the
three months ended September 30, 2003 and 2004 are shown below:

CONSOLIDATED BALANCE SHEETS AS AT DECEMBER 31, 2003

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
ASSETS
  Current assets
     Cash and cash equivalents                                     $       245.8   $        --    $      245.8
     Restricted cash                                                         5.1            --             5.1
     Marketable securities                                                   0.1            --             0.1
     Accounts receivable and other assets                                   42.1            --            42.1
     Inventories                                                           109.2            --           109.2
                                                                  --------------- -----------------------------
                                                                           402.3            --           402.3
  Property, plant and equipment                                            782.7         227.7         1,010.4
  Goodwill                                                                 918.0        (575.7)          342.3
  Long-term investments                                                      2.1            --             2.1
  Future income and mining taxes                                             1.5            --             1.5
  Deferred charges and other long-term assets                               35.9            --            35.9
                                                                  --------------- -----------------------------
                                                                   $     2,142.5   $    (348.0)   $    1,794.5
                                                                  --------------- -----------------------------
LIABILITIES
  Current liabilities
     Accounts payable and accrued liabilities                      $       101.4   $       0.5    $      101.9
     Current portion of long-term debt                                      29.4            --            29.4
     Current portion of reclamation and remediation obligations             19.2            --            19.2
                                                                  --------------- -----------------------------
                                                                           150.0           0.5           150.5
  Long-term debt                                                             0.7            --             0.7
  Reclamation and remediation obligations                                  100.5          10.6           111.1
  Future income and mining taxes                                            55.6          71.0           126.6
  Other long-term liabilities                                                4.7           2.2             6.9
  Redeemable retractable preferred shares                                    3.0            --             3.0
                                                                  --------------- -----------------------------
                                                                           314.5          84.3           398.8
                                                                  --------------- -----------------------------
NON-CONTROLLING INTEREST                                                     0.7            --             0.7
                                                                  --------------- -----------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                          12.6            --            12.6
                                                                  --------------- -----------------------------
COMMON SHAREHOLDERS' EQUITY                                                                 --
  Common share capital and common share purchase warrants                1,783.5            --         1,783.5
  Contributed surplus                                                       30.0            --            30.0
  Accumulated deficit                                                        3.2        (432.3)         (429.1)
  Cumulative translation adjustments                                        (2.0)            -            (2.0)
                                                                  --------------- -----------------------------
                                                                         1,814.7        (432.3)        1,382.4
                                                                  --------------- -----------------------------
                                                                   $     2,142.5   $    (348.0)   $    1,794.5
================================================================================= =============================

(a)     Change in Other long-term liabilities relates to the reclassification of
        certain asset retirement related liabilities to the reclamation and
        remediation obligation.
</TABLE>


                                       28
<PAGE>

CONSOLIDATED BALANCE SHEETS AS AT SEPTEMBER 30, 2004

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
ASSETS
  Current assets
     Cash and cash equivalents                                     $       208.6   $        --    $      208.6
     Restricted cash                                                         1.3            --             1.3
     Short-term invesments                                                   5.3            --             5.3
     Marketable securities                                                   0.1            --             0.1
     Accounts receivable and other assets                                   32.2           1.9            34.1
     Inventories                                                           118.9          (0.5)          118.4
                                                                  --------------- -----------------------------
                                                                           366.4           1.4           367.8
  Property, plant and equipment                                            788.7         205.0           993.7
  Goodwill                                                                 775.0        (432.7)          342.3
  Long-term investments                                                     31.6            --            31.6
  Future income and mining taxes                                             1.0            --             1.0
  Deferred charges and other long-term assets                               28.8            --            28.8
                                                                  --------------- -----------------------------
                                                                   $     1,991.5   $    (226.3)   $    1,765.2
                                                                  =============== =============================
LIABILITIES
  Current liabilities
     Accounts payable and accrued liabilities                      $        88.5   $        --    $       88.5
     Current portion of long-term debt                                       4.1            --             4.1
     Current portion of reclamation and remediation obligations             15.1            --            15.1
                                                                  --------------- -----------------------------
                                                                           107.7            --           107.7
  Long-term debt                                                             5.3            --             5.3
  Reclamation and remediation obligations                                  108.7            --           108.7
  Future income and mining taxes                                            51.5          57.8           109.3
  Other long-term liabilities                                                5.7            --             5.7
  Redeemable retractable preferred shares                                    2.5            --             2.5
                                                                  --------------- -----------------------------
                                                                           281.4          57.8           339.2
                                                                  --------------- -----------------------------
NON-CONTROLLING INTEREST                                                     0.7            --             0.7
                                                                  --------------- -----------------------------
CONVERTIBLE PREFERRED SHARES OF SUBSIDIARY COMPANY                          13.1            --            13.1
                                                                  --------------- -----------------------------
COMMON SHAREHOLDERS' EQUITY
  Common share capital and common share purchase warrants                1,786.4           0.3         1,786.7
  Contributed surplus                                                       34.1           0.7            34.8
  Accumulated deficit                                                     (122.2)       (285.1)         (407.3)
  Cumulative translation adjustments                                        (2.0)           --            (2.0)
                                                                  --------------- -----------------------------
                                                                         1,696.3        (284.1)        1,412.2
                                                                  --------------- -----------------------------
                                                                   $     1,991.5   $    (226.3)   $    1,765.2
================================================================================= =============================

(a)     Change in Other long-term liabilities relates to the reclassification of
        certain asset retirement related liabilities to the reclamation and
        remediation obligation.
</TABLE>


                                       29
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30,
2003

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $       153.8   $        --    $      153.8

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                              101.9          (7.6)           94.3
  Accretion                                                                  2.3            --             2.3
  Depreciation, depletion and amortization                                  40.0           6.0            46.0
                                                                  --------------- -----------------------------
                                                                             9.6           1.6            11.2
  Other operating costs                                                      3.0           6.3             9.3
  Exploration and business development                                       5.4            --             5.4
  General and administrative                                                 4.7            --             4.7
  Impairment charges
     Long-lived assets                                                         -           4.4             4.4
  Gain on disposal of assets                                                (0.2)           --            (0.2)
                                                                  --------------- -----------------------------
OPERATING EARNINGS (LOSS)                                                   (3.3)         (9.1)          (12.4)

  Other income, net                                                          0.3          (0.2)            0.1
                                                                  --------------- -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                                (3.0)         (9.3)          (12.3)

  Income and mining taxes recovery (expense)                                (3.0)          0.2            (2.8)
  Dividends on convertible preferred shares of subsidiary                   (0.2)           --            (0.2)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS)                                                $        (6.2)  $      (9.1)   $      (15.3)
                                                                  =============== =============================

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                              $        (6.2)  $      (9.1)   $      (15.3)
  Increase in equity component of convertible debentures                    (2.2)           --            (2.2)
  Gain on redemption of equity component of convertible
     debentures                                                             16.5            --            16.5
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS            $         8.1   $      (9.1)   $       (1.0)
                                                                  =============== =============================

EARNINGS (LOSS) PER SHARE
  Basic                                                            $        0.03   $     (0.03)   $         --
  Diluted                                                          $        0.02   $     (0.02)   $         --
================================================================================= =============================
</TABLE>


                                       30
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30,
2004

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $       175.5   $      (0.9)   $      174.6

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                              107.8          (0.1)          107.7
  Accretion                                                                  2.2            --             2.2
  Depreciation, depletion and amortization                                  40.3           5.2            45.5
                                                                  --------------- -----------------------------
                                                                            25.2          (6.0)           19.2
  Other operating                                                            3.0            --             3.0
  Exploration and business development                                       5.6           0.1             5.7
  General and administrative                                                 6.9          (0.3)            6.6
  Impairment charges
     Goodwill                                                              143.0        (143.0)             --
  Gain on disposal of assets                                                (0.7)           --            (0.7)
                                                                  --------------- -----------------------------
OPERATING EARNINGS (LOSS)                                                 (132.6)        137.2             4.6

  Other income, net                                                          1.8           0.5             2.3
                                                                  --------------- -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                              (130.8)        137.7             6.9

  Income and mining taxes recovery (expense)                                (2.7)         10.3             7.6
  Non-controlling interest                                                   0.1            --             0.1
  Dividends on convertible preferred shares of subsidiary                   (0.2)           --            (0.2)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS)                                                $      (133.6)  $     148.0    $       14.4
                                                                  --------------- -----------------------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                              $      (133.6)  $    (148.0)   $       14.4
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS            $      (133.6)  $     148.0    $       14.4
                                                                  =============== =============================

EARNINGS (LOSS) PER SHARE
  Basic                                                            $       (0.39)  $      0.43    $       0.04
  Diluted                                                          $       (0.39)  $      0.43    $       0.04
================================================================================= =============================
</TABLE>


                                       31
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2003

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $       428.6   $        --    $      428.6

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                              279.9          (0.3)          279.6
  Accretion                                                                  6.6            --             6.6
  Depreciation, depletion and amortization                                 108.5          15.5           124.0
                                                                  --------------- -----------------------------
                                                                            33.6         (15.2)           18.4
  Other operating expenses                                                  16.1            --            16.1
  Exploration and business development                                      18.7            --            18.7
  General and administrative                                                16.5            --            16.5
  Impairment charges
     Long-lived assets                                                         -           4.5             4.5
  (Gain) loss on disposal of assets                                          0.3          (0.1)            0.2
                                                                  --------------- -----------------------------
OPERATING EARNINGS (LOSS)                                                  (18.0)        (19.6)          (37.6)

  Other income, net                                                          2.1          (0.3)            1.8
                                                                  --------------- -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                               (15.9)        (19.9)          (35.8)
                                                                                            --
  Income and mining taxes recovery (expense)                                (7.1)          3.2            (3.9)
  Non-controlling interest                                                  (0.1)           --            (0.1)
  Dividends on convertible preferred shares of subsidiary                   (0.6)           --            (0.6)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS)                                                $       (23.7)  $     (16.7)   $      (40.4)
                                                                  =============== =============================

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                              $       (23.7)  $     (16.7)   $      (40.4)
  Increase in equity component of convertible debentures                    (6.5)           --            (6.5)
  Gain on redemption of equity component of convertible
     debentures                                                             16.5            --            16.5
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS            $       (13.7)  $     (16.7)   $      (30.4)
                                                                  =============== =============================

EARNINGS (LOSS) PER SHARE
  Basic                                                            $       (0.05)  $     (0.05)   $      (0.10)
  Diluted                                                          $       (0.05)  $     (0.05)   $      (0.10)
================================================================================= =============================
</TABLE>


                                       32
<PAGE>

CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30,
2004

<TABLE>
<CAPTION>
================================================================================= =============================
                                                                        AS
                                                                    PREVIOUSLY
                                                                      REPORTED       CHANGE       AS RESTATED
--------------------------------------------------------------------------------- -----------------------------
<S>                                                                <C>             <C>            <C>
REVENUE AND OTHER OPERATING INCOME
  Metal sales                                                      $       486.0   $       1.6    $      487.6

OPERATING COSTS AND EXPENSES
  Cost of sales (excluding items shown below)                              296.6           1.6           298.2
  Accretion                                                                  6.6            --             6.6
  Depreciation, depletion and amortization                                 108.9          18.3           127.2
                                                                  --------------- -----------------------------
                                                                            73.9         (18.3)           55.6
  Other operating expenses                                                   6.9            --             6.9
  Exploration and business development                                      14.5           0.1            14.6
  General and administrative                                                22.3          (0.3)           22.0
  Impairment charges
     Goodwill                                                              143.0        (143.0)             --
  Gain on disposal of assets                                                (1.4)           --            (1.4)
                                                                  --------------- -----------------------------
OPERATING EARNINGS (LOSS)                                                 (111.4)        124.9            13.5

  Other income, net                                                          5.2          (0.2)            5.0
                                                                  --------------- -----------------------------
EARNINGS (LOSS) BEFORE TAXES AND OTHER ITEMS                              (106.2)        124.7            18.5

  Income and mining taxes recovery (expense)                                (7.0)         13.4             6.4
  Dividends on convertible preferred shares of subsidiary                   (0.6)           --            (0.6)
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS)                                                $      (113.8)  $     138.1    $       24.3
                                                                  --------------- -----------------------------

ATTRIBUTABLE TO COMMON SHAREHOLDERS:

  Net earnings (loss)                                              $      (113.8)  $    (138.1)   $       24.3
                                                                  --------------- -----------------------------
NET EARNINGS (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS            $      (113.8)  $     138.1    $       24.3
                                                                  =============== =============================

EARNINGS (LOSS) PER SHARE
  Basic                                                            $       (0.33)  $      0.40    $       0.07
  Diluted                                                          $       (0.33)  $      0.40    $       0.07
================================================================================= =============================
</TABLE>


                                       33

<PAGE>

   3. ACCOUNTING CHANGES

   (A) STOCK-BASED COMPENSATION

       In November 2001,  the CICA issued  Handbook  Section 3870,  "Stock-Based
       Compensation and Other Stock-Based  Payments" ("Section 3870"), which was
       revised in November  2003.  Section 3870  establishes  standards  for the
       recognition,  measurement, and disclosure of stock-based compensation and
       other  stock-based  payments  made in exchange for goods and services and
       applies to transactions,  including non-reciprocal transactions, in which
       an  enterprise  grants  common  shares,  stock  options  or other  equity
       instruments, or incurs liabilities based on the price of common shares or
       other equity instruments. Section 3870 outlines a fair value based method
       of accounting required for stock-based transactions, effective January 1,
       2002 and applied to awards granted on or after that date.

       Prior to January 1, 2004,  as  permitted  by Section  3870,  the  Company
       presented the impact of employee stock-based awards on a pro forma basis.

       Effective  January 1, 2004, the Company  recorded an expense for employee
       stock-based  compensation  using the fair  value  based  method,  applied
       retroactively without restatement,  for all awards granted or modified on
       or after January 1, 2002.  Compensation  expense is  recognized  over the
       stock option vesting period.  The Company accounts for forfeitures in the
       period in which they occur. The fair value at grant date of stock options
       is estimated using the Black-Scholes option-pricing model.

       The impact of the  adoption of the fair value based method for all awards
       only impacted the Company's method of accounting for stock options.  As a
       result, stock option compensation  (pre-tax) of $2.5 million was recorded
       as a cumulative  effect of the adoption as an  adjustment  to the opening
       deficit as shown in the consolidated  statements of common  shareholders'
       equity and on adoption  $0.2  million was  recorded as an increase in the
       value of common  shares on the  exercise  of  options.  During  the three
       months and nine months ended  September  30, 2004,  the Company  recorded
       stock  option  expense of $0.3  million and $0.9  million,  respectively.
       Additionally,  the Company recorded restricted stock unit expense of $0.1
       million and $0.4 million,  respectively  during the three months and nine
       months ended September 30, 2004.


                                       34
<PAGE>

Had the  Company  adopted  the fair value  based  method of  accounting  for all
stock-based  awards in 2003,  the  reported  net loss and loss per common  share
would have been adjusted to the pro forma amounts indicated in the table below:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------
                                                                                     THREE MONTHS      NINE MONTHS
                                                                                        ENDED             ENDED
                                                                                     SEPTEMBER 30,    SEPTEMBER 30,
                                                                                         2003             2003
------------------------------------------------------------------------------------------------------------------
<S>                                                                                      <C>              <C>
Net loss attributable to common shareholders                                             $ (1.0)          $ (30.4)
 Stock-based compensation expense - pro forma                                                --              (0.1)
------------------------------------------------------------------------------------------------------------------
Net loss - pro forma                                                                     $ (1.0)          $ (30.5)
------------------------------------------------------------------------------------------------------------------

Loss per common share - Basic and diluted
  Reported                                                                               $   --           $ (0.10)
  Pro forma                                                                              $   --           $ (0.10)
------------------------------------------------------------------------------------------------------------------

</TABLE>

The following weighted average assumptions were used in computing the fair value
of stock options for the following periods:

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                                             THREE MONTHS ENDED               NINE MONTHS ENDED
                                                                SEPTEMBER 30,                   SEPTEMBER 30,
                                                            2004            2003            2004            2003
-------------------------------------------------------------------------------------------------------------------
<S>                                                          <C>             <C>             <C>             <C>
BLACK-SCHOLES WEIGHTED-AVERAGE ASSUMPTIONS
  Expected dividend yield                                    0.00%           0.00%           0.00%           0.00%
  Expected volatility                                       40.37%          68.08%          40.37%          69.37%
  Risk-free interest rate                                    2.92%           2.49%           2.72%           2.70%
  Expected option life in years                               3.5             5.0             3.5             5.0

WEIGHTED AVERAGE STOCK OPTION FAIR VALUE
    PER OPTION GRANTED                                     $  2.32         $  5.30         $  2.68         $  5.72
-------------------------------------------------------------------------------------------------------------------
</TABLE>

(B) ASSET RETIREMENT OBLIGATIONS

The CICA issued Handbook Section 3110 "Asset Retirement  Obligations"  ("Section
3110") is to be applied to fiscal years  commencing on or after January 1, 2004.
Section 3110 requires a liability to be initially  recognized  for the estimated
fair  value  of  the  obligation  when  it is  incurred.  The  associated  asset
retirement  cost is capitalized as part of the carrying amount of the long-lived
asset and depreciated  over the remaining life of the underlying  asset, and the
associated  liability is accreted to the estimated  fair value of the obligation
at the  settlement  date  through  periodic  accretion  charges to net  earnings
(loss).  When the obligation is settled,  any difference  between the final cost
and the recorded liability is recognized as income or loss on settlement.

The Company's mining and exploration  activities are subject to various laws and
regulations  for federal,  provincial  and various  international  jurisdictions
governing the  protection of the  environment.  These laws and  regulations  are
continually  changing.  The Company conducts its operations so as to protect the
public health and environment and believes its operations are in compliance with
all applicable laws and  regulations.  The Company has made, and expects to make
in the future, expenditures to comply with such laws and regulations, but cannot
predict the amount of such future  expenditures.  Estimated  future  reclamation
costs are based principally on legal and regulatory  requirements.  Prior to the
issue of Section 3110 the Company  accrued for estimated  site  restoration  and
closure  obligations  over the producing life of a mine with an annual charge to
earnings based primarily on legal, regulatory requirements and company policy.

Effective  January 1, 2004,  the Company  adopted the  initial  recognition  and
measurement  provisions  of Section  3110 and applied  them  retroactively.  The
financial  statements and  accompanying  notes have been restated to reflect the
adoption of Section  3110.  The adoption of Section 3110 resulted in an increase
in net loss of $1.2 million for the nine months ended  September  30, 2003.  Net
loss for the year ended December 31, 2003  decreased by $3.1 million,  while the
net loss for the year ended December 31, 2002 decreased by $8.1 million.  During
the three months and nine months ended September 30, 2004, the Company  recorded
depreciation  expense of $3.2  million  (pre-tax)  and $9.5  million  (pre-tax),
respectively,  and accretion  expense of $2.2 million (pre-tax) and $6.6 million
(pre-tax),  respectively. During 2003, the Company increased property, plant and
equipment by $45.4 million.  Long-lived asset, net of accumulated  depreciation,
were $25.7  million and $38.2  million as at September 30, 2004 and December 31,
2003,  respectively.  The site  restoration  cost obligation  (asset  retirement
obligation  liability)  as at  December  31,  2003 of  $119.7  million  was also
increased by $10.6 million to $130.3  million to reflect the adoption of Section
3110.  The site  restoration  cost accrual as at  September  30, 2004 was $123.8
million.  The  undiscounted  amount of  estimated  cash


                                       35
<PAGE>


flows to settle  the site  restoration  cost  accruals  was  approximately  $145
million.  The  expected  timing of  expenditures  ranges from 2004 to 2025.  The
credit  adjusted risk free rate used in  estimating  the site  restoration  cost
obligation was 7%.

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                                                         THREE MONTHS       NINE MONTHS
                                                            ENDED              ENDED
                                                         SEPTEMBER 30,      SEPTEMBER 30,
                                                            2003                2003
------------------------------------------------------------------------------------------
<S>                                                       <C>               <C>
Net loss attributable to common shareholders
  As previously reported                                  $   (0.9)         $   (29.2)
  Impact of adoption of Section 3110                          (0.1)              (1.2)
  As currently reported                                   $   (1.0)         $   (30.4)
=========================================================================================

Loss per common share
Basic and diluted
  As previously reported                                  $     --          $   (0.10)
  Impact of adoption of Section 3110                            --                 --
  As currently reported                                   $     --          $   (0.10)
=========================================================================================-
</TABLE>


       The following  table provides a  reconciliation  of the site  restoration
       cost obligation for the following periods:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
                                                        SEPTEMBER 30,      DECEMBER 31,
                                                            2004               2003
------------------------------------------------------------------------------------------
<S>                                                       <C>                <C>
Balance at the beginning of the period                    $  130.3           $   69.5
  Additions resulting from acquisitions (a)                     --               65.6
  Liabilities settled                                        (12.7)             (19.3)
  Accretion expense                                            6.6                9.0
  Foreign exchange                                             0.3                2.3
  Asset retirement cost                                         --                3.2
  Other                                                       (0.7)                --
------------------------------------------------------------------------------------------
Balance at the end of the period                          $  123.8            $ 130.3
==========================================================================================
</TABLE>


(a)    Reflects the  acquisitions of TVX and Echo Bay as well as the increase in
       ownership of Kubaka.


   (C) FLOW THROUGH SHARES

       On March 19, 2004, the Emerging  Issues  Committee  (EIC) of the Canadian
       Institute of Chartered  Accountants ("CICA") issued EIC 146 "Flow through
       shares"  ("EIC 146").  EIC 146 requires the  recognition  of a future tax
       liability  and a reduction to  shareholders'  equity on the date that the
       company  renounces  the tax  credits  associated  with  tax  expenditures
       provided  there is reasonable  assurance  that the  expenditures  will be
       made. This EIC was applicable on a prospective basis for all transactions
       initiated  after  March 19,  2004.  The  Company has adopted EIC 146 on a
       prospective basis.

   (D) CONSOLIDATION OF VARIABLE INTEREST ENTITIES

       In June 2003, the Accounting Standards Board issued AcG-15 "Consolidation
       of Variable Interest  Entities  (revised November 2003,  January 2004 and
       March 2004)" ("AcG-15"). AcG-15 requires that the assets, liabilities and
       results of operations of variable  interest entities be consolidated into
       the  financial  statements  of the  enterprise  that has the  controlling
       financial  interest.  AcG-15 also provides the framework for  determining
       whether a variable interest entity should be consolidated based on voting
       interest or significant financial support provided to it. The Company has
       evaluated  each of its  financial  interests as at September 30, 2004 and
       has  concluded  that  AcG-15  will not have an impact on its  results  of
       operations  or financial  condition.  Although  AcG-15 is  effective  for
       interim and annual  periods  beginning on or after  November 1, 2004, the
       Company early adopted AcG-15 in the quarter ended September 30, 2004. The
       Company will  continue to monitor  clarifications  to both AcG-15 and the
       comparable US GAAP  standard FIN 46R as it pertains to the  consolidation
       of  variable  interest  entities  and  will  make  modifications  to  its
       accounting policies, if applicable.

4. FINANCIAL INSTRUMENTS

   The Company manages its exposure to fluctuations in commodity prices, foreign
   exchange  rates and  interest  rates by entering  into  derivative  financial
   instrument  contracts in accordance  with the formal risk  management  policy
   approved by the Company's Board of Directors.


                                       36
<PAGE>

   Realized  and  unrealized  gains or losses  on  derivative  contracts,  which
   qualify for hedge accounting,  are deferred and recorded in earnings when the
   underlying  hedged  transaction is recognized.  Gains and losses on the early
   settlement  of gold hedging  contracts  are  recorded as deferred  revenue or
   deferred  losses on the  balance  sheet and  included  in  earnings  over the
   original delivery schedule of the hedged production.  Realized and unrealized
   gains or  losses  on  derivative  contracts  that do not  qualify  for  hedge
   accounting are recognized in income in the period incurred.

   The  outstanding  number of  ounces,  average  expected  realized  prices and
   maturities  for the gold commodity  derivative  contracts as at September 30,
   2004 are as follows:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
             EXPECTED YEAR     SPOT DEFERRED        AVERAGE       CALL OPTIONS        AVERAGE            PUT OPTIONS       AVERAGE
              OF DELIVERY      OUNCES  HEDGED        PRICE        SOLD (OUNCES)      STRIKE PRICE     BOUGHT (OUNCES)   STRIKE PRICE
------------------------------------------------------------------------------------------------------------------------------------
<C>                            <C>                   <C>           <C>                  <C>                  <C>           <C>
2004                                   --              --                 --                --               37,500        $ 250
2005                                   --              --                 --                --              150,000        $ 250
2006                                   --              --                 --                --              150,000        $ 250
--------------------------------------------------------------------------------------------------------------------------------
                                       --              --                 --                --              337,500        $ 250
===================================================================================================================================
</TABLE>

   At December 31,  2003,  the Company had  deferred  contracts  for the sale of
   175,000  ounces of gold with a fair value  unrealized  loss of $24.1 million,
   however  this  loss  was  not  recognized  on  the   consolidated   financial
   statements. Beginning January 1, 2004, these contracts, while still providing
   an  economic  hedge,  failed  to  meet  the  requirements  for  formal  hedge
   accounting. As such, changes in fair value from that point until maturity are
   included in current  earnings.  In  addition,  the  unrealized  loss of $24.1
   million is recognized in earnings in  connection  with the original  maturity
   dates of the contracts. During the six months ended June 30, 2004 the Company
   delivered  85,000 ounces into these contracts and financially  closed out the
   remaining  90,000 ounces at a cost of $9.6 million.  However,  for accounting
   purposes the portion of the  unrealized  loss,  as determined on December 31,
   2003,  relating to contracts with original maturity dates after September 30,
   2004 remains  deferred on the balance sheet and will only be recognized  into
   earnings in accordance with the original maturity dates of the contracts,  as
   follows:

------------------------------------------------------------------------------
QUARTERLY RECOGNITION OF DEFERRED LOSSES            OUNCES     ($ MILLIONS)
------------------------------------------------------------------------------

Q4 2004                                             22,500           3.0
Q1 2005                                             12,500           1.6
Q2 2005                                             25,000           3.1
------------------------------------------------------------------------------
                                                    60,000    $      7.7
==============================================================================


   Premiums  received at the inception of written call options are recorded as a
   liability.  Changes  in the  fair  value  of  the  liability  are  recognized
   currently in earnings. In addition, the Company did not seek hedge accounting
   for its silver spot  deferred  contracts  or gold put  options  and  Canadian
   dollar forward contracts  acquired in the business  combination with TVX Gold
   Inc.  and  Echo Bay  Mines  Ltd.  Changes  in the  fair  value  of  financial
   instruments  are  recognized   currently  in  earnings.   The  mark-to-market
   adjustment decreased the liability on the Company's call options sold, silver
   spot  deferred  contracts  and gold put options by $3.2  million for the nine
   months  ended  September  30, 2004 and $0.3 million for the nine months ended
   September 30, 2003.

   At September 30, 2004, the Company's  consolidated  foreign  currency program
   consists of:

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                      UNREALIZED
                                 MATURITY PERIOD                    AVERAGE PRICE                                          GAIN
                                 (TO THE YEAR)      QUANTITY          (C$/USD)     FAIR VALUE      DEFERRED GAIN      RECOGNIZED
------------------------------------------------------------------------------------------------------------------------------------
                                                 (millions of USD)                                (millions of USD)
<S>                         <C>        <C>          <C>                 <C>         <C>                <C>                 <C>
Fixed forward contracts (CDN$)         2004         $  5.0              1.4004      $ 0.5              $  --               $ 0.5
                                       2005           10.0              1.4322        1.3                0.9                 0.4
------------------------------------------------------------------------------------------------------------------------------------
                                                    $ 15.0              1.4216      $ 1.8              $ 0.9               $ 0.9
====================================================================================================================================
</TABLE>

   The  Company  uses these  fixed  forward  contracts  to  partially  hedge its
   Canadian   dollar   denominated   mine   operating   costs  and  general  and
   administrative  costs.  At December 31, 2003,  the Company had fixed  forward
   contracts to sell U.S.  dollars and buy Canadian  dollars of CDN$28.4 million
   at an average  exchange rate of 1.4221.  The unrealized  gain at December 31,
   2003 was $1.8 million.  Beginning  January 1, 2004,  these  contracts,  while
   still providing an economic hedge, failed to meet the requirements for formal
   hedge  accounting.  As such,  changes in fair  value  from that  point  until
   maturity  are  included  in current  earnings.  The  unrealized  gain of $1.8
   million is recognized in earnings in  connection  with the original  maturity
   dates of the contracts.  During the nine months ended September 30, 2004, the
   Company  recognized  into  earnings  $0.9 million of the deferred  gain.  The
   remaining  deferred  gain will be recognized  into earnings  during the first
   half of 2005 ($0.9  million).  Gains from the  strengthening  of the Canadian
   dollar against the U.S. dollar since January 1, 2004


                                       37
<PAGE>

   have been netted against  operating  costs from the Company's  Canadian mines
   and  against  Canadian  general  and  administrative  expenses  in the period
   incurred.

   At September 30, 2004, based on an exchange rate of 1.2639, the fair value of
   the fixed forward contracts was $1.8 million.

5. INVENTORIES

--------------------------------------------------------------------------------
                                                  SEPTEMBER 30,    DECEMBER 31,
                                                      2004             2003
-------------------------------------------------------------------------------

In-process                                       $   18.7         $   15.5
Finished metal                                       19.4             15.4
Ore in stockpiles                                    14.8             15.3
Ore on leach pads                                     8.9              8.3
Materials and supplies                               71.4             62.5
-------------------------------------------------------------------------------
                                                    133.2            117.0
Long-term portion of ore in stockpiles (a)          (14.8)            (7.8)
-------------------------------------------------------------------------------
                                                 $  118.4         $  109.2
===============================================================================


(a) Ore in stockpiles  includes  low-grade material not scheduled for processing
    within the next twelve months and is included in Deferred  charges and other
    long-term assets on the Consolidated balance sheets.

   The most significant amounts of ore in stockpiles  represents  stockpiled ore
   at the Company's Fort Knox mine and its proportionate share of stockpiled ore
   at Round Mountain, La Coipa and the Porcupine Joint Venture.

   Ore on leach pads relates  entirely to the Company's 50% owned Round Mountain
   mine.

   Based on current mine plans,  the Company  expects to place the last tonne of
   ore on its current leach pad in 2008.  The Company  expects that all economic
   ounces will be recovered  within  approximately  12 months following the date
   the last tonne of ore is placed on the leach pad.

6. GOODWILL

   The goodwill  allocated to the Company's  reporting units now included in the
   respective operating segment assets is shown in the table below:

<TABLE>
<CAPTION>
                                                  2003                                                       2004
-----------------------------------------------------------------------------------------------------------------------------------
                            Dec 31, 2002   Additions (a)    Impairment   Dec 31, 2003    Additions    Impairment    Sept 30, 2004
-----------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>           <C>             <C>            <C>             <C>            <C>           <C>
OPERATING SEGMENTS
  Fort Knox                   $ --          $   --          $   --         $   --          $  --          $  --         $   --
  Kubaka                        --              --              --             --             --             --             --
  Round Mountain                --             173.7           (87.2)          86.5           --             --             86.5
  La Coipa                      --             137.3           (65.9)          71.4           --             --             71.4
  Crixas                        --              80.5           (42.5)          38.0           --             --             38.0
  Paracatu                      --             164.9           (99.4)          65.5           --             --             65.5
  Musselwhite                   --              84.9           (53.9)          31.0           --             --             31.0
  Porcupine Joint Venture       --              --              --             --             --             --             --
  Other operations              --              95.4           (45.5)          49.9           --             --             49.9
CORPORATE AND OTHER             --              --              --             --             --             --             --
---------------------------------------------------------------------------------------------------------------------------------
                              $ --          $  736.7        $ (394.4)      $  342.3        $  --          $  --         $  342.3
================================================================================================================================
</TABLE>


(a) Resulting from the acquisitions of TVX and Echo Bay.

   During the nine months  ended  September  30,  2004,  no goodwill  impairment
   charges were recorded.

7. LONG-TERM INVESTMENTS

   On February 10, 2004,  the Company  entered into a  transaction  with Wolfden
   Resources Inc. to sell its interests in the Ulu gold property in exchange for
   2.0 million common shares of Wolfden  Resources  Inc.  valued at $7.7 million
   and 1.0 million  common share warrants each to acquire one common share at an
   exercise price of $5.80 valued at $1.1 million exercisable for 18 months from
   the transaction date. In addition,  the Company also received $2.0 million in
   cash  consideration.  There  was no gain or  loss on sale as  result  of this
   transaction.


                                       38
<PAGE>

   On January 8, 2004, the Company  purchased an  approximate  10.2% interest in
   Anatolia Minerals  Development Limited. As a result, the Company received 4.0
   million common shares of Anatolia Minerals Development Limited valued at $5.4
   million.

   During the nine months  ended  September  30, 2004,  the Company  acquired an
   approximately  13.1% interest in Cumberland  Resources Ltd., which was valued
   at $10.5 million.

8. OTHER INCOME - NET

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
                                                      THREE MONTHS ENDED        NINE MONTHS ENDED
                                                         SEPTEMBER 30,             SEPTEMBER 30,
                                                    -----------------------------------------------
                                                     2004         2003          2004          2003
---------------------------------------------------------------------------------------------------
<S>                                                 <C>          <C>          <C>          <C>
Interest income and other                           $  1.6       $  2.3       $  5.3       $  5.1
Interest expense                                      (0.8)        (0.6)        (1.9)        (3.1)
Foreign exchange (losses) gains                        1.6          0.3         (1.6)         0.5
Non-hedge derivative gains (losses)                   (0.1)        (0.9)         3.2          0.3
Loss on redemption of convertible debentures           --          (1.1)         --          (1.1)
---------------------------------------------------------------------------------------------------
                                                    $  2.3       $  --        $  5.0       $  1.7
===================================================================================================
</TABLE>


9. SEGMENTED INFORMATION

   The Company operates  primarily in the gold mining  industry.  Its activities
   include gold  production,  exploration  for gold and the  acquisition of gold
   properties.  The Company's  primary  mining  operations are in North America,
   South America and Russia and are supported by two corporate  offices,  one in
   Canada and the other in the United  States.  The  Company's  major product is
   gold.  Segments are operations reviewed by the Chief Operating Decision Maker
   (Chief  Executive  Officer).  Reportable  segments  are  identified  based on
   quantitative thresholds,  which are those operations whose revenues, earnings
   (loss) or assets are  greater  than 10% of the total  consolidated  revenues,
   earnings (loss) or assets of all the reportable  segments.  In addition,  the
   Company  considers   qualitative  factors,   such  as  which  operations  are
   considered to be  significant by the Chief  Operating  Decision  Maker.  Less
   significant  properties that are either producing or in development  prior to
   commercial  production are classified as other  operations.  Operations under
   care and maintenance or shutdown  (properties in the reclamation phase), less
   significant  non-mining  operations  and other  operations  not meeting these
   thresholds are included in corporate and other.

   The  following  tables set forth  information  by segment  for the  following
   periods:


                                       39
<PAGE>
<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          SEGMENT
                                                MINING    COST OF                                                         EARNINGS
                                               REVENUE    SALES (b) ACCRETION  DD&A (c)   EXPLORATION IMPAIRMENT OTHER (d) (LOSS)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>       <C>       <C>         <C>          <C>       <C>     <C>      <C>
For the three months ended September 30, 2004 (a):
OPERATING SEGMENTS
  Fort Knox                                     $   37.2  $   22.4  $   0.3     $   7.8      $  0.2    $  --   $  --    $   6.5
  Kubaka (e)                                         9.7       7.7      0.1         1.4         --        --      1.8      (1.3)
  Round Mountain                                    47.9      25.9      0.5        14.9         0.3       --      0.1       6.2
  La Coipa                                          14.2      11.2      0.1         3.6         0.1       --      0.3      (1.1)
  Crixas                                             9.9       3.2      0.1         3.3         0.1       --      --        3.2
  Paracatu                                           9.3       5.1      0.1         2.4         --        --      --        1.7
  Musselwhite                                        8.0       5.6       --         2.9         0.5       --      --       (1.0)
  Porcupine Joint Venture                           19.1      10.8      0.2         5.3         0.7       --      0.2       1.9
  Other operations                                  23.1      15.4      0.4         3.6         1.0       --      0.5       2.2
CORPORATE AND OTHER (f)                             (3.8)      0.4      0.4         0.3         2.8       --      6.0     (13.7)
--------------------------------------------------------------------------------------------------------------------------------
                                                $  174.6  $  107.7  $   2.2     $  45.5      $  5.7    $  --   $  8.9   $   4.6
================================================================================================================================

</TABLE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          SEGMENT
                                                MINING    COST OF                                                         EARNINGS
                                               REVENUE    SALES (b) ACCRETION  DD&A (c)   EXPLORATION IMPAIRMENT OTHER (d) (LOSS)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                             <C>       <C>       <C>         <C>          <C>       <C>     <C>      <C>
For the three months ended September 30, 2003 (a):
OPERATING SEGMENTS
  Fort Knox                                     $   37.0  $   24.4  $    0.4    $   8.6      $  0.7    $  --   $  --    $   2.9
  Kubaka (e)                                        15.6       8.4       0.1        4.7         0.3       --      0.1       2.0
  Round Mountain                                    34.5      19.5       0.5       11.2         0.6       --      --        2.7
  La Coipa                                          11.2       7.8       0.1        3.6         0.3       --      --       (0.6)
  Crixas                                             8.0       2.1       0.1        3.4         0.1       --      --        2.3
  Paracatu                                           8.7       5.0       0.2        2.5        (0.3)      --      0.9       0.4
  Musselwhite                                        7.6       4.8       0.1        3.2         0.5       --      0.2      (1.2)
  Porcupine Joint Venture                           22.5      12.7       0.1        7.8         0.5       --      1.1       0.3
  Other operations                                  10.6       8.9       0.2        1.6         0.8       4.4     7.2     (12.5)
CORPORATE AND OTHER (f)                            (1.9)       0.7       0.5       (0.6)        1.9       --      4.2      (8.6)
--------------------------------------------------------------------------------------------------------------------------------
                                               $   153.8  $   94.3   $   2.3     $ 46.0      $  5.4    $  4.4  $ 13.7   $ (12.3)
================================================================================================================================
</TABLE>


                                       40
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          SEGMENT
                                                MINING    COST OF                                                         EARNINGS
                                               REVENUE    SALES (b) ACCRETION  DD&A (c)   EXPLORATION IMPAIRMENT OTHER (d) (LOSS)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                              <C>      <C>        <C>         <C>         <C>       <C>     <C>       <C>
For the nine months ended September 30, 2004 (a):
OPERATING SEGMENTS
  Fort Knox                                      $ 100.2  $  64.2    $ 1.0       $  21.4     $  0.3    $  --   $   --    $ 13.3
  Kubaka (e)                                        38.2     25.4      0.3           5.2        0.1       --       2.2      5.0
  Round Mountain                                   121.5     64.5      1.4          37.0        0.5       --        --     18.1
  La Coipa                                          44.1     29.7      0.2          12.9        0.2       --       0.4      0.7
  Crixas                                            28.1      8.9      0.1           9.5        0.2       --        --      9.4
  Paracatu                                          28.4     14.7      0.4           7.1         --       --        --      6.2
  Musselwhite                                       24.0     16.2      0.1           9.1        1.6       --        --     (3.0)
  Porcupine Joint Venture                           59.4     34.1      0.5          16.4        2.5       --       0.2      5.7
  Other operations                                  53.8     39.4      1.4           8.3        2.3       --       3.8     (1.4)
CORPORATE AND OTHER (f)                            (10.1)     1.1      1.2           0.3        6.9       --      20.9    (40.5)
----------------------------------------------------------------------------------------------------------------------------------
                                                 $ 487.6  $ 298.2    $ 6.6       $ 127.2     $ 14.6    $  --    $ 27.5   $ 13.5
==================================================================================================================================
</TABLE>


<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                          SEGMENT
                                                MINING    COST OF                                                         EARNINGS
                                               REVENUE    SALES (b) ACCRETION  DD&A (c)   EXPLORATION IMPAIRMENT OTHER (d) (LOSS)
--------------------------------------------------------------------------------------------------------------------------------
<S>                                            <C>        <C>         <C>        <C>         <C>       <C>      <C>      <C>
For the nine months ended September 30, 2003 (a):
OPERATING SEGMENTS
  Fort Knox                                    $  105.0   $   72.2    $    1.0   $   28.4    $   1.7   $  --    $  --    $   1.7
  Kubaka (e)                                       43.3       22.2         --        12.9        0.9      --       0.5       6.8
  Round Mountain                                   97.8       53.1         1.2       31.4        1.4      --       --       10.7
  La Coipa                                         33.4       25.5         0.2       10.2        0.8      --       --       (3.3)
  Crixas                                           22.3        7.2         0.1        9.0        0.3      --       --        5.7
  Paracatu                                         23.3       13.2         0.4        7.1        --       --       0.9       1.7
  Musselwhite                                      16.0       11.8         0.1        7.9        1.6      --       0.2      (5.6)
  Porcupine Joint Venture                          61.0       37.9         0.4       18.3        1.8      --       2.5       0.1
  Other operations                                 33.6       34.5         1.1        3.0        5.6      4.4      8.2     (23.2)
CORPORATE AND OTHER (f)                            (7.1)       2.0         2.1       (4.2)       4.6      --      20.5     (32.1)
----------------------------------------------------------------------------------------------------------------------------------
                                               $  428.6   $  279.6    $    6.6   $  124.0    $  18.7   $  4.4   $ 32.8   $ (37.5)
==================================================================================================================================
</TABLE>

(a) See Note 2.
(b) Cost of sales excludes accretion, depreciation,  depletion and amortization.
(c) Depreciation,  depletion  and  amortization  is referred to as "DD&A" in the
    tables above.
(d) Other includes other operating costs,  general and  administrative  expenses
    and (gain) loss on disposal of assets.
(e) Segment  information  for the nine months ended  September 30, 2003 included
    the Company's  portion of Kubaka's  financial  results (54.7% until February
    28, 2003 and 100% thereafter).
(f) Includes Corporate, shutdown operations and other non-core operations.


                                       41
<PAGE>


    The following table details the segment assets and capital  expenditures for
    the following periods:

<TABLE>
<CAPTION>
                                          SEGMENT ASSETS                        CAPITAL EXPENDITURE
                                 ---------------------------     -----------------------------------------------
                                              As at                 Three months ended        Nine months ended
                                 ----------------------------
                                  SEPTEMBER 30,   DECEMBER 31,         SEPTEMBER 30,            SEPTEMBER 30,
                                      2004           2003          2004          2003        2004          2003
-----------------------------------------------------------------------------------------------------------------
Operating segments (a)
<S>                              <C>             <C>             <C>          <C>          <C>           <C>
  Fort Knox                      $    282.2      $    261.2      $  18.8      $   8.0      $   38.2      $  19.2
  Kubaka (b)                           67.7            73.3          3.7          0.1          13.7          0.6
  Round Mountain                      199.8           233.1          3.2          3.5           6.7          4.7
  La Coipa                            164.6           175.9          0.2          0.1           0.6          0.4
  Crixas                              108.5           110.2          0.7          0.8           2.7          1.8
  Paracatu                            268.8           275.0          1.2          2.2           3.1          3.4
  Musselwhite                         129.4           138.9          1.0          1.0           2.6          1.8
  Porcupine Joint Venture              81.9            83.6          7.5          2.5          14.6          5.8
  Other operations                    150.2           117.9         10.3          3.2          24.3          8.3
CORPORATE AND OTHER (c)               312.2           325.4          0.2          6.0           0.5          6.3
----------------------------------------------------------------------------------------------------------------
TOTAL                            $  1,765.3      $  1,794.5      $  46.8      $  27.4      $  107.0      $  52.3
================================================================================================================
</TABLE>

(a) See Note 2.
(b) Segment  information  for the nine months ended  September 30, 2003 included
    the Company's  portion of Kubaka's  financial  results (54.7% until February
    28, 2003 and 100% thereafter).
(c) Includes Corporate, shutdown operations and other non-core operations.


<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------------------------
                                                 MINING REVENUES                         PROPERTY, PLANT & EQUIPMENT
                                 --------------------------------------------------   -------------------------------
                                      THREE MONTHS ENDED        NINE MONTHS ENDED                  AS AT
                                                                                      -------------------------------
                                        SEPTEMBER 30,              SEPTEMBER 30,        SEPTEMBER 30,    DECEMBER 31,
                                     2004          2003         2004          2003          2004            2003
----------------------------------------------------------------------------------------------------------------------
<S>                               <C>           <C>           <C>           <C>           <C>           <C>
GEOGRAPHIC INFORMATION (a)
United States                     $   95.6      $   71.5      $  247.9      $  202.8      $  363.9      $    381.9
Canada                                34.8          38.8          98.4         103.5         210.5           218.0
Russia (b)                             9.7          15.6          38.2          43.3          19.1            10.3
Chile                                 15.3          11.2          46.6          33.4         102.5            91.9
Brazil                                19.2          16.7          56.5          45.6         292.5           303.1
Other                                 --            --            --            --             5.2             5.2
------------------------------------------------------------------------------------------------------------------
Total                             $  174.6      $  153.8      $  487.6      $  428.6      $  993.7      $  1,010.4
===================================================================================================================
</TABLE>

(a) See Note 2.
(b) Segment  information  for the nine months ended  September 30, 2003 included
    the Company's  portion of Kubaka's  financial  results (54.7% until February
    28, 2003 and 100% thereafter).

    The Company is not  economically  dependent on a limited number of customers
    for the  sale of its  product  because  gold  can be sold  through  numerous
    commodity market traders worldwide. For the three months ended September 30,
    2004 sales to five  customers  totaled $34.5 million,  $34.2 million,  $34.0
    million, $29.3 million and $25.1 million, respectively. For the three months
    ended  September 30, 2003 sales to four  customers  totaled  $39.0  million,
    $32.9 million, $27.3 million and $17.5 million, respectively.

    For the nine months ended September 30, 2004 sales to four customers totaled
    $144.4 million, $85.7 million, $81.9 million and $63.4 million. For the nine
    months  ended  September  30,  2003 sales to four  customers  totaled  $97.2
    million, $85.3 million, $80.7 million and $32.1 million, respectively.

10. EARNINGS (LOSS) PER SHARE

    Earnings  (loss) per share ("EPS") have been  calculated  using the weighted
    average  number of shares  outstanding  during the  period.  Diluted  EPS is
    calculated using the treasury stock method.  The following table details the
    weighted  average  number of  outstanding  common shares for the purposes of
    computing  basic  and  diluted  earnings  (loss)  per  common  share for the
    following periods.


                                       42
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
                                                                       THREE MONTHS ENDED             NINE MONTHS ENDED
                                                                          SEPTEMBER 30,                SEPTEMBER 30,
                                                                    ---------------------------------------------------------
(Number of common shares in millions)                                  2004         2003 (A)       (2004)          2003 (A)
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                                   <C>            <C>            <C>            <C>
Basic weighted average shares outstanding:                            346,213        323,422        346,011        297,352

Weighted average shares dilution adjustments:
  Dilutive stock options (b)                                               61           --              145           --
  Restricted shares                                                       230           --              230           --
----------------------------------------------------------------------------------------------------------------------------
Diluted weighted average shares outstanding                           346,504        323,422        346,386        297,352
============================================================================================================================

Weighted average shares dilution adjustments - exclusions: (c)
  Dilutive stock options                                                 --               81           --           13,348
  Echo Bay warrants (d)                                                  --            1,753           --             --
  Redeemable preferred shares                                           1,058          1,058          1,058          1,058
  Kinam preferred                                                         332            335            332            335
=============================================================================================================================
</TABLE>


(a) As a result of the net loss  from  operations  for the three and nine  month
    periods ended September 30, 2003,  diluted earnings per share was calculated
    using the basic weighted average shares outstanding  because to do otherwise
    would have been anti-dilutive.
(b) Dilutive stock options were determined by using the Company's  average share
    price for the period.  For the three months and nine months ended  September
    30,  2004,  the average  share  price used were $5.76,  and $6.28 per share,
    respectively.  For the three months and nine months ended September 30, 2003
    the average share price used were $6.99, and $6.80 per share, respectively
(c) These  adjustments were excluded,  as they were  anti-dilutive for the three
    months and nine months ended September 30, 2004 and 2003, respectively.
(d) Echo Bay warrants were exercised  during the three months ended December 31,
    2003 and are no longer outstanding.

11. LONG-TERM DEBT

    During the three  months  ended March 31, 2004 the Company  fully repaid the
    Industrial  Revenue Bonds of $25.0  million  owing to the Alaska  Industrial
    Development and Export Authority.

12. COMMITMENTS AND CONTINGENCIES

    GENERAL

    The Company  follows  Section 3290 of the CICA handbook in  determining  its
    accruals and disclosures  with respect to loss  contingencies.  Accordingly,
    estimated losses from loss  contingencies  are accrued by a charge to income
    when information available prior to the issuance of the financial statements
    indicates  that it is likely that a future  event will confirm that an asset
    has been  impaired  or a  liability  incurred  at the date of the  financial
    statements and the amount of the loss can be reasonably estimated.

    OTHER LEGAL MATTERS

    Class action

    The Company was named as a defendant in a class action complaint filed on or
    about April 26,  2002,  entitled  Robert A. Brown,  et al. v.  Kinross  Gold
    U.S.A., Inc., et al., Case No.  CV-S-02-0605-KJD-RJJ,  brought in the United
    States  District Court for the District of Nevada.  Defendants  named in the
    complaint are the Company,  its subsidiaries,  Kinross Gold U.S.A., Inc. and
    Kinam,  and Robert M.  Buchan,  President  and C.E.O.  of the  Company.  The
    complaint is brought on behalf of two potential classes,  those who tendered
    their Kinam preferred stock into the tender offer for the Kinam $3.75 Series
    B  Preferred  Stock made by the Kinross  Gold U.S.A.  and those who did not.
    Plaintiffs argue, among other things, that amounts historically  advanced by
    the Company to Kinam should be treated as capital  contributions rather than
    loans,  that  the  purchase  of Kinam  preferred  stock  from  institutional
    investors in July 2001 was a constructive redemption of the preferred stock,
    an impermissible  amendment to the conversion rights of the preferred stock,
    or constituted the commencement of a tender offer,  that the Company and its
    subsidiaries have intentionally  taken actions for the purpose of minimizing
    the value of the Kinam preferred  stock,  and that the amount offered in the
    tender  offer of  $16.00  per share  was not a fair  valuation  of the Kinam
    preferred  stock.  The  complaint  alleges  breach of contract  based on the
    governing  provisions  of the Kinam  preferred  stock,  breach of  fiduciary
    duties,  violations  of the "best  price"  rule under  Section  13(e) of the
    Securities Exchange Act of 1934, as amended, and the New York Stock Exchange
    rules,  violations of Section 10(b) and 14(e) of the Securities Exchange Act
    of 1934,  as amended,  and Rules 10b-5 and  14c-6(a)  hereunder,  common law
    fraud based on the acts taken and  information  provided in connection  with
    the tender offer,  violation of Nevada's  anti-racketeering law, and control
    person  liability under Section 20A of the Securities  Exchange Act of 1934,
    as amended.  A second  action  seeking  certification  as a class action and
    based on the same  allegations  was also filed in the United States District
    Court for the District of Nevada on or about May 22, 2002. It names the same
    parties as defendants. This action has been consolidated into the Brown case
    and the  Brown  plaintiffs  have been  designated  as lead  plaintiffs.  The
    plaintiffs  seek  damages  ranging  from  $9.80  per  share,   plus  accrued
    dividends,  to  $39.25  per  share  of  Kinam  preferred  stock  or,  in the
    alternative, the issuance of 26.875 to 80.625 shares of the Company for each
    Kinam preferred share.  They also seek


                                       43
<PAGE>

    triple  damages  under  Nevada  statutes.  The Company  brought a motion for
    judgement on the  pleadings  with respect to the federal  securities  claims
    based on fraud.  Discovery was stayed pending the resolution of this matter.
    On  September  29,  2003,  the Court  ruled  that  plaintiffs  had failed to
    adequately state a federal securities fraud claim. The plaintiffs were given
    an  opportunity  to amend the  complaint to try and state a claim that would
    meet the pleading standards established by the Court but, if they are unable
    to do so,  these  claims will be  dismissed.  The  plaintiffs  have filed an
    amended  complaint with the Court in an effort to eliminate the deficiencies
    in their original  complaint.  The Company believes the amended complaint is
    without merit and has filed a motion for judgement on the pleadings  seeking
    dismissal of the  securities  fraud claims  without  prejudice.  The Company
    anticipates  continuing to vigorously  defend this  litigation.  The Company
    cannot reasonably  predict the outcome of this action and the amount of loss
    cannot be  reasonably  estimated,  therefore  no loss  contingency  has been
    recorded  in the  financial  statements.  This class  action  relates to the
    Corporate and other segment (see Note 9).

    Settlement in Greece

    In January 2003,  the Stratoni lead / zinc mine located in Greece,  owned by
    TVX Hellas S.A. ("TVX Hellas"),  a subsidiary of the Company,  was shut down
    pending the  receipt of new mining  permits.  Revised  mining  permits  were
    issued  on  February  18,  2003.  However,   operations  remained  suspended
    throughout  2003  as the  Company  worked  with  the  Greek  government  and
    potential  investors to develop the appropriate  exit strategy.  On December
    10, 2003, the Greek government unilaterally terminated the contract pursuant
    to which the Company's two subsidiaries,  TVX and TVX Hellas,  held title to
    the  Hellenic  gold  mines,  and  invited  them to enter  into a  settlement
    agreement.  A settlement  agreement  was then executed on December 12, 2003,
    pursuant to which the Greek government agreed to pay 11 million Euros to TVX
    Hellas.  The Company agreed to augment the 11 million Euros ($13.6 million),
    with an additional 11 million  Euros,  and to contribute all such amounts in
    full  satisfaction of labour and trade liabilities of TVX Hellas. On January
    30, 2004, the Company  advanced TVX Hellas 11 million Euros ($13.6  million)
    and  received  a full  release  from  all  liabilities  in  connection  with
    environmental remediation.  TVX Hellas has settled all labour related claims
    and has filed for  bankruptcy.  Trade and other  payables will be settled in
    the bankruptcy proceedings out of the remaining funds on hand in Greece.

    The Hellenic Gold Properties litigation

    The Ontario Court (General Division) issued its judgement in connection with
    the claim against TVX by three individuals  (collectively the "Alpha Group")
    on October 14, 1998,  relating to TVX's interest in the Hellenic Gold Mining
    assets in Greece owned by TVX Hellas.  The Court rejected full ownership and
    monetary damage claims but did award the Alpha Group a 12% carried  interest
    and the  right to  acquire  a  further  12%  participating  interest  in the
    Hellenic Gold assets. TVX filed a notice to appeal and the Alpha Group filed
    a notice of cross appeal.

    Subsequent to the trial decision in October, 1998, TVX received notification
    of two actions commenced by 1235866 Ontario Inc. ("1235866"),  the successor
    to Curragh Inc.,  Mineral Services Limited and Curragh Limited,  against the
    Alpha Group, and others,  in Ontario and English Courts,  in relation to the
    claim by the Alpha Group  against TVX for an interest in the  Hellenic  gold
    mines.  On July 28,  1999,  TVX entered  into an  agreement  with 1235866 to
    ensure that these new claims would not result in any  additional  diminution
    of TVX's  interest in the Hellenic gold mines.  1235866 agreed not to pursue
    any claim  against TVX for an interest in the Hellenic gold mines beyond the
    interest awarded to the Alpha Group by the courts. In the event that 1235866
    is  successful  in its claim  against  the  Alpha  Group,  1235866  would be
    entitled to a 12% carried interest as defined in the agreement and the right
    to acquire a 12% participating interest upon payment of 12% of the aggregate
    amounts  expended  by TVX  and  its  subsidiaries  in  connection  with  the
    acquisition,  exploration,  development  and  operation of the Hellenic gold
    mines up to the date of  exercise.  The TVX  appeal,  the Alpha  Group cross
    appeal and a motion by  1235866  were all heard on  February  17, 18 and 25,
    2000.  By  judgement  released  June 1,  2000,  the Court of  Appeal,  while
    partially  granting the TVX appeal,  upheld the trial  decision and rejected
    the Alpha Group cross appeal.  The Court also rejected the motion of 1235866
    for a new trial.  As a result,  TVX holds, as  constructive  trustee,  a 12%
    carried  interest and a right to acquire 12%  participating  interest in the
    Hellenic gold mines upon the payment of costs associated with that interest.
    The action by 1235866 against the Alpha Group  continues.  TVX and the Alpha
    Group have been unable to agree on the definition and application of the 12%
    carried  interest and the right to acquire a 12%  participating  interest in
    the  Hellenic  gold  mines  awarded to Alpha  Group in the trial  judgement.
    Accordingly,  in June 2001,  a new action was  commenced  between  the Alpha
    Group and TVX to clarify the award.  TVX  anticipates  that the hearing with
    respect to such matter may be held in 2005.

    As a result of the settlement  agreement the Company executed with the Greek
    Government  with respect to TVX Hellas S.A.,  the Alpha group has  commenced
    further  litigation  due to an  alleged  breach  of  the  October  14,  1998
    judgement in the action noted above between the Alpha Group and TVX relating
    to the Hellenic Gold mines. By Amended Statement of Claim,  served September
    13, 2004,  the Alpha Group has added Kinross as a defendant and expanded the
    claim to  include  a claim for  damages  for  breach of trust and  breach of
    fiduciary duty and a claim for damages in respect of the alleged  refusal to
    accept the exercise of the Alpha Group's alleged right of first refusal. The
    Alpha Group is seeking damages of $50 million based on these claims. Kinross
    will defend this claim on the basis that it acted  prudently and fairly with
    respect to its dealings with TVX Hellas S.A., the Greek government,  and the
    Alpha  Group.  While  Kinross  believes  that it has a good defense to these
    claims,  pleadings and  documentary  production  and discovery have not been
    completed and, therefore,  it is premature for Kinross to express an opinion
    on its prospects of success.  In addition,  1235866 has  threatened  further
    litigation for an alleged  breach of fiduciary  duty. No pleadings have been
    exchanged


                                       44
<PAGE>

    with respect to 1235866's  threatened  action and Kinross cannot  reasonably
    predict the  outcome of this  threatened  litigation  and the amount of loss
    cannot be reasonably estimated.

    No  pleadings  have been  exchanged  with  respect  to these two  threatened
    actions.

    Summa

    In September 1992, Summa Corporation  ("Summa")  commenced a lawsuit against
    Echo Bay Exploration Inc. and Echo Bay Management Corporation (together, the
    "Subsidiaries"),  100% owned  subsidiaries  of Echo Bay,  alleging  improper
    deductions  in the  calculation  of royalties  payable over several years of
    production at McCoy/Cove and another mine,  which is no longer in operation.
    The  assets and  liabilities  of the  Subsidiaries  are  included  under the
    heading  Corporate and other in the segmented  information (see Note 9). The
    matter  was  tried in the  Nevada  State  Court in April  1997,  with  Summa
    claiming more than $13 million in damages, and, in September 1997, judgement
    was rendered for the Subsidiaries. The decision was appealed by Summa to the
    Supreme  Court of Nevada,  which in April 2000  reversed the decision of the
    trial court and remanded the case back to the trial court for "a calculation
    of the appropriate  royalties in a manner not inconsistent with this order."
    The case was decided by a panel  comprised of three of the seven Justices of
    the Supreme Court of Nevada and the Subsidiaries petitioned that panel for a
    rehearing. The petition was denied by the three-member panel on May 15, 2000
    and  remanded to the lower court for  consideration  of other  defenses  and
    arguments put forth by the Subsidiaries.  The Subsidiaries  filed a petition
    for a hearing  before the full Supreme  Court and on December 22, 2000,  the
    Court  recalled  its  previous  decision.  Both the  Subsidiaries  and their
    counsel  believe that grounds exist to modify or reverse the decision.  Echo
    Bay has $1.5 million  accrued related to this  litigation.  If the appellate
    reversal of the trial decision is maintained and the trial court, on remand,
    were to dismiss all of the Subsidiaries'  defenses,  the royalty calculation
    at  McCoy/Cove  would  change and  additional  royalties  would be  payable.
    Neither the Company, nor counsel to the Subsidiaries, believe it is possible
    to quantify the precise  amount of liability  pursuant to a revised  royalty
    calculation.

    In March, 2004, Summa filed a complaint in the District Court of Nevada, The
    Howard Hughes Corporation v. Echo Bay Management  Corporation,  et al., Case
    No. A481813,  against Echo Bay, the  Subsidiaries,  Kinross,  Newmont Mining
    Corporation,  and  the  officers  and  directors  of the  various  corporate
    entities,  alleging that the Subsidiaries have transferred substantially all
    of their assets to insiders and close  third-parties,  rendering them unable
    to  respond  to any  judgment  that  Summa  may  obtain  in  the  underlying
    litigation. The complaint alleges that the Echo Bay and TVX combination with
    Kinross and the acquisition of the closed  McCoy/Cove  mining  operations by
    Newmont in exchange for assumption of the  reclamation  obligations  was the
    culmination  of a scheme  to  improperly  strip  the  Subsidiaries  of their
    assets.  Kinross has not filed an answer to the complaint,  and no discovery
    has taken place.  Kinross  believes  this  complaint to be without merit and
    anticipates vigorously defending the action.

    GENERAL

    The Company is also involved in legal  proceedings and claims arising in the
    ordinary  course of its  business.  The Company  believes  these  claims are
    without  merit  and  is  vigorously   defending  them.  In  the  opinion  of
    management,  the amount of ultimate  liability with respect to these actions
    will  not  materially  affect  Kinross'  financial   position,   results  of
    operations or cash flows.

    INCOME TAXES

    The Company operates in numerous  countries around the world and accordingly
    is subject to, and pays  annual  income  taxes under the various  regimes in
    countries  in which it  operates.  These tax  regimes are  determined  under
    general  corporate  income  tax  laws  of  the  country.   The  Company  has
    historically  filed,  and continues to file, all required income tax returns
    and to pay the  taxes  reasonably  determined  to be due.  The tax rules and
    regulations  in many  countries  are complex and subject to  interpretation.
    From time to time the  Company  will  undergo a review of its  historic  tax
    returns and in  connection  with such  reviews,  disputes can arise with the
    taxing authorities over the Company's interpretation of the country's income
    tax rules.  As at September 30, 2004 the Company had the following  disputes
    and has not  accrued  any  additional  tax  liabilities  in  relation to the
    disputes listed below:

    Russia

    In July, 2003, the Company  received notice that local taxation  authorities
    in Russia are seeking a reassessment  of the tax paid relating to the Kubaka
    mine by Omolon, the Company's 98.1% owned Russian Joint Stock Company in the
    amount of $8.5 million,  which included  penalties and interest.  The notice
    challenged  certain  deductions  taken by the  Company  and tax  concessions
    relating to tax returns  filed by the  Company in prior  years.  The Company
    appealed this notice of  reassessment  and on January 27, 2004,  the Magadan
    Arbitration  court  agreed  with the  Company  on  three  of the four  major
    reassessment  items. The impact of this ruling reduced the liability to $3.9
    million, which includes interest and penalties. However, on May 14, 2004 the
    Magadan Appeal Court overturned the Magadan  Arbitration  court's  decision.
    The Company has  launched an appeal with the Federal  Cessation  court.  The
    Khaborovsk  Cessation  Court has ruled and upheld the Magadan  Appeal  Court
    ruling of May 14,  2004.  The  Company  plans to appeal this ruling with the
    Supreme  Arbitration Court of the Russian  Federation.  The Company believes
    that this  reassessment  will be resolved


                                       45
<PAGE>

    with no material adverse impact to the Company's financial position, results
    of  operations  or cash  flows.  This  reassessment  relates  to the  Kubaka
    business segment (see Note 9).

    Chile

    On September 27, 2001,  the Company's  100% owned  Chilean  mining  company,
    Compania Minera Kinam Guanaco ("CMKG")  received a tax reassessment from the
    Chilean IRS. The assets of CMKG are included under the heading Corporate and
    other in the segmented  information (see Note 9). The  reassessment,  in the
    amount of $6.7 million,  disallows  certain  deductions  utilized by a third
    party.  The third party has  indemnified the Company for up to $13.5 million
    in relation to this reassessment.  The Company appealed the reassessment and
    on January 12, 2004, the Chilean IRS upheld the tax auditors  position.  The
    Company  plans to appeal the  reassessment  with the Chilean Tax Court.  The
    Company believes this reassessment will be resolved with no material adverse
    impact on to the Company's financial position, results of operations or cash
    flows.

    Brazil

    The Company's 50% owned  Brazilian  mining  company,  Mineracao Serra Grande
    S.A. which owns the Crixas mine received a tax reassessment in November 2003
    from the Brazilian IRS. The reassessment  disallowed the claiming of certain
    sales tax credits and assessed interest and penalties of which the Company's
    50% share totals $9.5  million.  The Company and its joint  venture  partner
    believe that this reassessment will be resolved without any material adverse
    affect on its financial position,  results of operations or cash flows. This
    reassessment relates to the Crixas business segment (see Note 9).

13. SUBSEQUENT EVENTS

    ACQUISITION  OF REMAINING  51% INTEREST IN RIO PARACATU  MINERACAO  FROM RIO
    TINTO PLC.

    On  November 9, 2004 the  Company  announced  that it had signed a letter of
    intent for the purchase of 51% of the Rio Paracatu Mineracao (RPM) gold mine
    in Brazil from Rio Tinto Plc. ("Rio Tinto"). As a result of this transaction
    the Company will now own 100% of the property and become the  operator.  The
    proposed  consideration  for Rio  Tinto's 51%  shareholding  in RPM (and its
    immediate holding companies) is approximately US$260 million payable in cash
    on completion,  with a working capital  adjustment  which will be determined
    after the completion  based on the working  capital  position of RPM and its
    immediate  holding  companies,  the  subject of the sale,  as at the date of
    completion.  The Company intends to finance the proposed  transaction with a
    combination  of cash and debt.  The sale is subject to Kinross and Rio Tinto
    reaching  agreement in all terms and entering  into a definitive  agreement.
    The transaction is expected to be completed by the end of 2004.

    CONSOLIDATION AND DECONSOLIDATION OF COMMON SHARES

    On  November  8,  2004  the  Company  will  hold a  special  meeting  of its
    shareholders   to  approve  an   amendment  to  its  articles  to  effect  a
    consolidation  (reverse split) of its common shares on a 100:1 basis and the
    immediate  deconsolidation  (split)  of such  shares  on a 1:100  basis.  If
    approved,  the  consolidation  is scheduled to take place on Sunday November
    28, 2004 and the deconsolidation  will follow on Monday November 29, 2004 at
    12:01 am. As a result,  shareholders holding less than 100 pre-consolidation
    shares will receive a cash payment  equal to the  weighted  average  trading
    price per share on the Toronto  stock  exchange  for the five  trading  days
    prior   to   November   26,   2004.   Shareholders   holding   100  or  more
    pre-consolidation     shares     will    not    be     affected    by    the
    consolidation/deconsolidation  other  than to be asked to  tender  their old
    share certificates for a new share certificate bearing the new CUSIP number.
    The effect of this proposal is to provide a large number of shareholders who
    hold less than 100 shares with cash representing the value of their holdings
    without cost or commission  and to eliminate the high cost being incurred by
    the Company to maintain these shareholdings.


                                       46
</TEXT>
</DOCUMENT>
