Kinross Gold Corp. (NYSE: KGC / Toronto: K) - Follow Up #4

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KINROSS GOLD CORP: RETURN ON USD 10,000 INVESTMENT
Purchase Date	No. of Shares	Purchase Price	Cost (USD)	Price Today	Value Today
March 24, 2003	1'900	5.29	10'051.00
Total	1'900	5.29	10'051.00	5.53	10'507.00
Profit					456.00
Profit (in %)					5%

 

THE FOURTH LARGEST NORTH AMERICAN BASED GOLD PRODUCER

 

Business Summary

Incorporated in 1993, Kinross has grown from a junior gold producer to the 7th largest primary gold producer in the world with approximately 1.7 million ounces of gold equivalent production.

Kinross has varying interests in 13 mines on four continents and a robust pipeline of advanced exploration and development projects. Approximately 50% of the production is in the US and over two-thirds in North America. This largely North American presence provides Kinross with a stable base for the global portfolio of mines. Kinross completed the merger with TVX and Echo Bay on January 31, 2003, which vaulted the company into the ranks of the senior producers.

Since then, Kinross has started an aggressive exploration program to expand its reserve base and further grow of the Company. Kinross is in a strong financial position and plans to be unhedged by the end of Q2/04.

Kinross management is dedicated to being world class.

This statement applies to all business units within the Kinross portfolio. Kinross has a commitment to the shareholders to keep the growth momentum going while taking into account market conditions and, more importantly, shareholder value. Kinross’ strategy involves organic growth in and around existing assets and the advancement of projects from the pipeline into operating mines. Adding to the project pipeline through accretive transactions to replace projects moving into the operational phase will keep and maintain the flow of additions to reserve life. Kinross’ mandate has been set and the company is dedicated to realizing our potential.

Recent News: Kinross Increases Stake in Cumberland Resources

Kinross Gold Corporation has announced that it has acquired 205,000 common shares of Cumberland Resources Ltd. ("Cumberland") through the facilities of the Toronto Stock Exchange. As a result of this transaction, Kinross has acquired an aggregate of 5,642,500 common shares of Cumberland representing 10.37% of the issued and outstanding shares of Cumberland.

Fundamental Considerations: A growing reserve base

 

Technical Considerations

The gold price is firmly entrenched on its way towards $ 450 even though it may take some time to overcome the resistance zone around $ 400.

The share price of Kinross has fallen back substantially since it touched 12 dollars in December of last year. It sits at the lower level of the trading range in place since spring 2002. In our view, it is an excellent moment to acquire this company at a reasonable price.

Our recommendation: Buy!

Peter Zihlmann

www.pzim.com  

investment@pzim.com

forex@pzim.com

June 11, 2004

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Disclosure: The author has not been paid to write this article nor has he

received any other inducement to do so. The author is a shareholder in the

company and will benefit from any increase in the company’s share price.

Disclaimer: The author’s objective in writing this article is to invoke an

interest on the part of potential investors in this stock to the point where

they are encouraged to conduct their own further diligent research. Neither

the information nor the opinions expressed should be construed as a

solicitation to buy or sell this stock. Investors are recommended to obtain

the advice of a qualified investment advisor before entering into any transactions in the stock.

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