Kinross Gd: Restructuring of its Gold Commodity Derivative C
2/23/1 16:13 (New York)
KINROSS GOLD CORP ("K-T;KGC-BDNX3")
- Restructuring of its Gold Commodity Derivative Contracts
Kinross Gold Corporation announced the following restructuring of its
gold commodity derivative contracts.
During February 2001, Kinross repurchased spot deferred forward sales
contracts representing 500,000 ounces of gold and entered into new spot
deferred forward sales contracts for the same number of ounces.
Details of the gold spot deferred forward sales program before and
after the restructuring are summarized in the following table.
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Before
Year Gold Ounces Hedged Average Price
2001 225,000 $310
2002 100,000 $315
2003 100,000 $320
2004 100,000 $320
After
Year Gold Ounces Hedged Average Price
2001 225,000 $274
2002 100,000 $270
2003 100,000 $270
2004 100,000 $270
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The cash gain realized on the closeout of the hedge book was $21.0
million and will be recorded into income over the originally scheduled term
of delivery. There has been no change in the written call option position
from what was disclosed previously.
Kinross continues to actively manage its exposure to changes in spot
gold prices.
TEL: (416) 365-5650 Robert M. Buchan, Chairman and CEO
E-mail: info@kinross.com |
