<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________to ___________
Commission file number 1-9620
KINAM GOLD INC.
(Formerly Amax Gold Inc.)
(Exact name of registrant as specified in its charter)
DELAWARE 06-1199974
------------------------------ -------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
185 SOUTH STATE ST., # 820, SALT LAKE CITY, UTAH 84111
------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrants' telephone number, including area code (801) 363-9152
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [X] No[ ]
Common Stock Outstanding, $0.01 par value, as of August 11, 2000 - 92,213,928
shares
Total Pages -12
Exhibit Index Located on Page 11
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KINAM GOLD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues $ 48.7 $ 53.9 $ 104.6 $ 111.6
-------- -------- -------- --------
Costs and operating expenses (income):
Cost of sales 35.9 35.9 76.6 73.0
Depreciation and depletion 16.5 20.0 36.3 40.6
General and administrative (1.2) (1.1) (2.3) (2.0)
Exploration 0.9 0.1 1.5 0.5
-------- -------- -------- --------
Total costs and operating expenses 52.1 54.9 112.1 112.1
-------- -------- -------- --------
Loss from operations (3.4) (1.0) (7.5) (0.5)
Interest expense (3.1) (2.1) (5.6) (4.9)
Interest income 0.4 0.3 1.7 0.5
Other - (0.8) - -
-------- -------- -------- --------
Loss before income taxes (6.1) (3.6) (11.4) (4.9)
Income tax expense (0.6) (0.6) (1.8) (1.1)
-------- -------- -------- --------
Net loss (6.7) (4.2) (13.2) (6.0)
Preferred stock dividends (1.7) (1.7) (3.4) (3.4)
-------- -------- -------- --------
Loss attributable to common shares $ (8.4) $ (5.9) $ (16.6) $ (9.4)
======== ======== ======== ========
Per common share:
Net basic and diluted loss $ (0.09) $ (0.06) $ (0.18) $ (0.10)
Weighted average number of common shares 92.2 92.2 92.2 92.2
outstanding
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 3
KINAM GOLD INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in millions except par value of stock)
(Unaudited)
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
2000 1999
-------- -----------
<S> <C> <C>
ASSETS
Current
Cash and equivalents $ 13.3 $ 25.1
Inventories 43.5 49.2
Receivables 21.6 21.8
Other 3.1 2.2
------- -------
Current assets 81.5 98.3
Property, plant and equipment, net 323.0 351.0
Other 14.9 14.6
------- -------
$ 419.4 $ 463.9
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)
Current
Demand loan from parent $ 73.6 $ 73.6
Current maturities of long-term debt 21.8 25.3
Accounts payable, trade 17.6 22.7
Accrued and other current liabilities 11.0 15.2
Reclamation reserve, current portion 5.4 6.2
------- -------
Current liabilities 129.4 143.0
Advance from parent 214.5 213.2
Long-term debt 97.9 110.6
Reclamation reserve, non-current portion 25.8 24.6
Other 15.9 20.0
------- -------
483.5 511.4
======= =======
Commitments and contingencies
Shareholders' equity (capital deficiency):
Preferred stock, par value $1.00 per share, authorized 10,000,000
shares, 2,000,000 shares designated as $2.25 Series A Convertible
Preferred Stock, no shares issued and outstanding: and 1,840,000
shares designated as $3.75 Series B Convertible Preferred Stock,
issued and outstanding 1,840,000 shares 1.8 1.8
Common stock, par value $.01 per share, authorized 200,000,000 shares,
issued and outstanding 92,213,928 shares in 1999 and 1998 0.9 0.9
Paid-in capital 409.4 409.4
Accumulated deficit (476.2) (459.6)
------- -------
Total shareholders' equity (capital deficiency) (64.1) (47.5)
------- -------
Total liabilities and shareholders' equity $ 419.4 $ 463.9
======= =======
</TABLE>
The accompanying notes are an integral part of these statements
3
<PAGE> 4
KINAM GOLD INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in millions)
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30
2000 1999
------- -------
<S> <C> <C>
Cash flows from operating activities
Net loss $ (13.2) $ (6.0)
Adjustments to reconcile net loss to cash flow provided from operations:
Depreciation and depletion 36.3 40.6
Increase in reclamation reserve 0.4 1.1
(Increase) decrease in working capital items (6.1) 3.8
Other (4.4) (2.8)
------- -------
Cash flow provided from operating activities 13.0 36.7
------- -------
Cash flows used in investing activities:
Capital expenditures (6.5) (6.1)
Business acquisition, net of cash acquired - (30.1)
Proceeds from sale of assets - 2.1
------- -------
Cash flow used in investing activities (6.5) (34.1)
------- -------
Cash flows from financing activities:
Repayments of financings (16.2) (6.5)
Proceeds from financing from parent 1.3 8.2
Preferred dividends paid (3.4) (3.4)
------- -------
Cash flow used in financing activities (18.3) (1.7)
------- -------
Net (decrease) increase in cash and cash equivalents (11.8) 0.9
Cash and cash equivalents at January 1 25.1 19.0
------- -------
Cash and cash equivalents at June 30 $ 13.3 $ 19.9
------- -------
</TABLE>
The accompanying notes are an integral part of these statements
4
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KINAM GOLD INC.
(FORMERLY AMAX GOLD INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying interim unaudited consolidated financial statements include all
adjustments that are, in the opinion of management, necessary for a fair
presentation. Results for any interim period are not necessarily indicative of
the results that may be achieved in future periods. The financial information as
of this interim date should be read in conjunction with the financial statements
and notes thereto contained in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999.
On June 1, 1998, Kinam Gold, Inc. (the Company) completed a merger agreement
with Kinross Gold Corporation ("Kinross") providing for a combination of their
businesses. Kinross currently owns 100% of the Company's outstanding common
stock.
2. INVENTORIES
Inventories consist of the following (in millions):
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
2000 1999
------- -----------
<S> <C> <C>
Gold
Finished goods $ 9.4 $ 14.4
Work in progress 2.6 2.7
Materials and supplies 31.5 32.1
------- -------
$ 43.5 $ 49.2
======= =======
</TABLE>
3. LONG-TERM DEBT
Long-term debt repayments during the second quarter of 2000 were comprised of
capital lease repayments of $1.7 million, repayments of the Kubaka subordinated
debt of $1.1 million, and repayment of the Kubaka project financing debt of $9.6
million. Included in the Kubaka project financing debt repayment is a voluntary
repayment of $2.8 million ($5.0 million - 100%) of this high cost debt which was
made with cash reserves held by the Kubaka operations. For the first six months
of 2000 long term debt repayments were comprised of capital lease repayments of
$3.7 million, repayments of the Kubaka subordinated debt of $2.9 million, and
repayment of the Kubaka project financing debt of $9.6 million.
4. HEDGE CONTRACTS
Forward sales contracts, generally on a spot deferred basis are entered into
from time to time to protect the Company from the effect of price changes on
precious metals sales. As of June 30, 2000 the Company had no outstanding hedge
contracts.
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During July 1998, the Company liquidated its hedge position and received
approximately $45.9 million in cash. In connection with the transaction the
Company recognized a gain of $41.7 million, net of costs previously incurred.
The gain is being included in revenue over the period the underlying hedge
contracts were originally scheduled to expire.
5. COMMITMENTS AND CONTINGENCIES
Reclamation, site restoration and closure costs are accrued on a
units-of-production basis using estimates based upon current federal, state and
applicable foreign laws and regulations governing the protection of the
environment. These laws and regulations are continually changing and generally
becoming more restrictive. Any changes in these laws and regulations could
impact future estimated reclamation costs. Total reclamation costs for the
Company at the end of current operating mine lives are estimated to be
approximately $45.0 million.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Production Results
The following table sets forth the Company's ounces of gold production,
production costs, ounces of gold sold and average realized prices for the six
months and three months ended June 30, 2000 and 1999.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2000 1999 2000 1999
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Gold production (ounces)
Fort Knox 84,608 91,133 161,289 163,945
Kubaka 58,872 65,128 118,463 127,129
Refugio 21,866 24,308 47,532 50,733
Hayden Hill 2,756 5,092 4,983 8,849
Guanaco 5,019 6,373 9,284 12,903
-------- -------- -------- --------
Consolidated gold production 173,121 192,034 341,551 363,559
======== ======== ======== ========
Cash operating cost ($ per ounce of gold produced)(i)
Fort Knox $ 212 $ 179 $ 226 $ 199
Kubaka 118 94 116 96
Refugio 267 242 263 241
Hayden Hill 189 141 220 149
Guanaco 286 146 222 150
-------- -------- -------- --------
Consolidated cash operating cost $ 189 $ 156 $ 196 $ 166
======== ======== ======== ========
</TABLE>
6
<PAGE> 7
<TABLE>
<S> <C> <C> <C> <C>
Total cash cost ( $per ounce of gold produced) (ii)
Fort Knox $ 212 $ 179 $ 226 $ 199
Kubaka 155 133 153 135
Refugio 281 257 278 255
Hayden Hill 207 156 235 160
Guanaco 309 165 243 168
-------- -------- -------- --------
Consolidated total cash cost $ 204 $ 172 $ 208 $ 183
======== ======== ======== ========
Total production cost ( $per ounce of gold produced) (iii)
Fort Knox $ 319 $ 287 $ 337 $ 310
Kubaka 267 271 293 294
Refugio 345 327 340 328
Hayden Hill 207 156 235 160
Guanaco 309 165 243 168
-------- -------- -------- --------
Consolidated total production cost $ 302 $ 279 $ 318 $ 298
======== ======== ======== ========
Ounces of gold sold 167,559 190,955 358,288 384,915
Average realized price per ounce of gold $ 291 $ 282 $ 292 $ 290
</TABLE>
(i) Cash operating cost at the mine sites includes overhead, net of credits
for silver by-product.
(ii) Total cash cost includes cash operating cost plus royalties and applicable
production taxes.
(iii) Total production cost includes total cash cost plus reclamation and
depreciation and depletion.
The following table provides a reconciliation of operating costs per the
consolidated financial statements to operating costs for per ounce calculation
of total cash costs as per the Gold Institute guidelines.
RECONCILIATION OF TOTAL CASH COSTS PER
EQUIVALENT OUNCE OF GOLD TO CONSOLIDATED FINANCIAL STATEMENTS
(millions except production in ounces and per ounce amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Operating costs per financial statements $ 35.9 $ 35.9 $ 76.6 $ 73.0
Dore inventory change 0.3 (0.3) (3.3) (3.0)
Site restoration cost accruals (0.6) (0.6) (1.2) (1.2)
Contract termination costs (1.5) (1.5)
Refugio generator repair costs (0.3)
Other (0.3) (0.4) (0.6) (0.6)
---------- ---------- ---------- ----------
Operating costs for per ounce calculation purposes $ 35.3 $ 33.1 $ 71.2 $ 66.7
---------- ---------- ---------- ----------
Gold production-ounces 173,121 192,034 341,551 363,559
Total cash costs per ounce of gold $ 204 $ 172 $ 208 $ 183
</TABLE>
The Company reported a second quarter 2000 net loss of $6.7 million, or $.09 per
share after preferred dividends, on revenue of $48.7 million, compared with a
1999 second quarter net loss of $4.2 million, or $.06
7
<PAGE> 8
per share after preferred dividends, on revenue of $53.9 million. An operating
loss of $3.4 million for the second quarter of 2000 compared with an operating
loss of $1.0 million for the 1999 second quarter. Low gold prices coupled with
higher cash costs contributed to the operating loss.
For the first six months of 2000 the Company had a net loss of $13.2 million, or
$.18 per share after preferred dividends on revenue of $104.6 million, compared
with a loss of $6.0 million, or $.10 per share after preferred dividends, on
revenue of $111.6 million for the first six months of 1999. The six month loss
from operations of $7.5 million compared with a 1999 six month loss from
operations of $0.5 million.
The Company's average realized price in the second quarter of 2000 was $291 per
ounce compared with $282 per ounce for the 1999 second quarter. The average spot
price was $280 per ounce in the second quarter of 2000 compared with $273 per
ounce in the second quarter of 1999. The realized price exceeded the spot price
due to the amortization of the gain realized when the hedge position was closed
in 1998.
PRIMARY OPERATIONS
FORT KNOX MINE
Gold production in the second quarter of 2000 was 84,608 ounces, compared with
76,681 ounces during the first quarter of 2000 and 91,133 ounces during the
second quarter of 1999. In the second quarter of 2000, total cash costs were
$212 per ounce of gold compared with $241 per ounce of gold during the first
quarter of 2000 and $179 during the second quarter of 1999. Cash spending
decreased by $0.6 million during the second quarter when compared with the first
quarter of 2000. Production is expected to increase and total cash costs per
ounce of gold are expected to decrease during the second half of the year as the
grade of ore processed increases. Estimated gold production for 2000 remains at
350,000 ounces at total cash costs of approximately $200 per ounce. Estimated
production is expected to increase to approximately 500,000 ounces per annum at
lower total cash costs once production is achieved from the nearby satellite
deposits in 2001.
KUBAKA MINE (54.7% OWNERSHIP INTEREST, 53% IN 1999)
The Company's share of gold production in the second quarter of 2000 was 58,872
ounces compared with 59,592 ounces during the first quarter of 2000, and 65,128
ounces during the second quarter of 1999. In the second quarter of 2000, total
cash costs were $155 per ounce compared with $150 per ounce of gold in the first
quarter of 2000 and $133 during the second quarter of 1999. Total cash costs per
ounce of gold increased when compared with 1999 due to the additional export
royalty levied in 1999. The Kubaka mine continues to perform exceptionally well,
having achieved the lowest total cash costs per ounce of the Company's primary
operations due to the high-grade nature of the ore body and its efficient
exploitation.
REFUGIO MINE (50% OWNERSHIP INTEREST)
The Company's share of gold production in the second quarter of 2000 was 21,866
ounces, compared with 25,666 ounces in the first quarter of 2000 and 24,308
ounces during the second quarter of 1999. In the second quarter of 2000, total
cash costs were $281 per ounce as compared with $276 per ounce in the first
quarter of 2000 and $257 in the second quarter of 1999. Cash spending for the
Company's share of production decreased by $0.9 million when compared with the
first quarter of 2000. Compania Minera Maricunga (CMM), the Chilean joint
venture company, placed 2.9 million tons on the leachpad during the quarter, its
best quarterly tonnage performance to date. In 2000, CMM continued to improve
operations and replace inefficient equipment. In the second quarter the final
power generation plant was overhauled.
8
<PAGE> 9
The Company's second quarter 2000 depreciation and depletion decreased to $16.5
million from $20.0 million in the second quarter of 1999 due primarily to
decreased sales and lower depreciation rates due to the 1999 write downs.
General and administrative income of $1.2 million for the second quarter of 2000
compared with 1999 second quarter income of $1.1 million. The increased income
is mainly attributable to the inclusion of the Refugio management fee in 2000.
The $0.8 million increase in exploration expense to $0.9 million for the second
quarter of 2000 resulted from increased exploration near the Guanaco Mine in
Chile.
Higher interest expense of $3.1 million for the second quarter of 2000, compared
with $2.1 million for the 1999 second quarter, was primarily attributed to
higher interest rates.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash flow from operations for the first six months of 2000 of
$13.0 million compared with $34.7 million for the comparable 1999 six months.
The decrease was due to higher cash costs and lower sales, coupled with a
significant increase in working capital primarily due to reduced trade payables.
Capital spending was $6.5 million for the first six months of 2000 compared with
$6.1 million during the first six months of 1999. Approximately $3.2 million was
spent at Fort Knox, primarily on permitting activities of the True North
property. Refugio capital spending was $2.6 million for the first six months of
2000 primarily on a new leach pad, while Kubaka spent $0.1 million and Guanaco
spent $0.6 million.
The Company paid dividends to the holders of preferred shares totalling $3.4
million during the six months ended June 30, 2000 and 1999, respectively.
Subsequent to June 30th, the Board of Directors has suspended the quarterly
dividends on the U.S. $3.75 Series B Convertible Preferred Stock payable on
August 15, 2000. This decision has been taken by the Board as a cash
conservation measure due to the persistence of low gold prices and will be
reviewed by the Board on a quarterly basis.
CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995
With the exception of historical matters, the matters discussed in this report
are forward-looking statements that involve risks and uncertainties that could
cause actual results to differ materially from projected results. Such
forward-looking statements include statements regarding expected dates for gold
sales, reserve additions, projected quantities of future gold production,
estimated reserves and recovery rates, anticipated production rates, costs and
expenditures, prices realized by the Company and expected to be realized,
expected future cash flows, anticipated financing needs, growth plans and
sources of financing and repayment alternatives. Factors that could cause actual
results to differ materially from such forward-looking statements include, among
others: risks and uncertainties relating to general domestic and international
economic and political conditions, the cyclical and volatile price of gold, the
political and economic risks associated with foreign operations, cost overruns,
unanticipated ground and water conditions, unanticipated grade and geological
problems, metallurgical and other processing problems, availability of materials
and equipment, the timing of receipt of necessary governmental permits and
approvals, the occurrence of unusual weather or operating conditions, force
majeure events, lower than expected ore grades, the failure of equipment or
processes to operate in accordance with specifications or expectations, labor
relations, accidents, environmental risks, the results of financing efforts and
financial market conditions and other risk factors detailed in the Company's
Securities and Exchange Commission filings. Refer to the Risk Factors on pages
13 to 16 of the Company's Annual Report on Form 10K as filed with the Securities
and Exchange
9
<PAGE> 10
Commission, for a more detailed discussion of risks. Many of such factors are
beyond the Company's ability to control or predict. Readers are cautioned not to
put undue reliance on forward-looking statements. The Company disclaims any
intent or obligation to update publicly these forward-looking statements,
whether as a result of new information, future events or otherwise.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
1. COMMODITY PRICE RISKS
The Company's revenues are derived primarily from the sale of gold production.
The Company's net income can vary significantly with fluctuations in the market
prices of gold. At various times, in response to market conditions, the Company
has entered into gold forward sales contracts for some portion of expected
future production to mitigate the risk of adverse price fluctuations. The
significant decline in spot gold prices in 1998 increased the value of the
Company's forward sales contracts. The Company closed out these contracts in
1998 for $45.9 million in cash. (See Note 4 to the financial statements for
further explantation). Based on the Company's projected 2000 sales volume, each
$10 per ounce change in the average realized price on gold sales would have an
approximate $7.25 million impact on revenues and pre-tax earnings.
2. FOREIGN CURRENCY EXCHANGE RISK
The Company conducts the majority of its operations in the U.S., Russia, and
Chile. Currency fluctuations affect the cash flow that the Company will realize
from its operations as gold is sold in U.S. dollars, while production costs are
incurred in Russian rubles, Chilean pesos and U.S. dollars. The Company's
results are positively affected when the U.S. dollar strengthens against these
foreign currencies and adversely affected when the U.S. dollar weakens against
these foreign currencies. The Company's cash and equivalent balances are held in
U.S. dollars. Holdings denominated in other currencies are relatively
insignificant.
The temporal method is used to consolidate results of operations in Russia. The
major currency-related exposure at any balance sheet date is on
ruble-denominated cash balances and working capital. Because the bullion
inventory is denominated in U.S. dollars, there are no related foreign exchange
risks. The foreign exchange exposure on the balance of the Company's working
capital items is nominal. Gold sales are primarily denominated 50% in U.S.
dollars and 50% in rubles. The U.S. dollars received are used to service the
U.S. dollar denominated debt and the foreign supplies inventory purchases, while
the rubles received from the gold sales are used to pay local operating costs.
The Company has and will continue to convert any excess rubles into U.S. dollars
to repay U.S. denominated third party and inter-corporate debt obligations.
Assuming estimated 2000 ruble payments of 880 million rubles at an exchange rate
of 30 rubles to one U.S. dollar, each 2 rubles change to the U.S. dollar could
result in an approximate $1.8 million change in the Company's pre-tax earnings.
In Chile, the currency measurement is the U.S. dollar as the majority of
transactions are denominated in U.S. dollars. Local expenditures are recorded
based on the prevailing exchange rate at the time and bullion settlement
receivables are denominated in U.S. dollars. Assuming the Company's share of
estimated 2000 pesos payments of 3.2 billon pesos at an exchange rate of 515
pesos to one U.S. dollar, each 15 pesos change to the U.S. dollar could result
in an approximately $0.2 million change in the Company's pre-tax earnings.
3. INTEREST RATE RISKS
As at June 30, 2000, the Company carried $105.2 million of variable rate debt,
all denominated in U.S. dollars. Interest expense would change by approximately
$1.1 million per year for every one percent change in interest rates.
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<PAGE> 11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is also involved in legal proceedings and claims which arise 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
the financial position, results of operations or cash flows of the Company.
ITEM 2. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit Number
--------------
(27) Financial Data Schedule
(b) Reports on Form 8-K - None
ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's Annual Meeting of Shareholders was held on May 23, 2000. Messrs.
John A. Brough, Arthur H. Ditto, John M.H. Huxley, John W. Ivany and Brian W.
Penny were elected as directors of the Company until the next annual meeting of
shareholders or until their successors are elected or appointed. All of the
issued and outstanding common shares were voted in favour of the election of the
foregoing directors. No matters other than the election of Directors was
considered at the Annual Meeting.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KINAM GOLD INC.
By: /s/ Brian W. Penny
----------------------------------
Treasurer and Director
(principal financial officer)
Dated: August 11, 2000
11
