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 September 30, 2001

                                       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.
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)



            Nevada                                    06-1199974
---------------------------------          ------------------------------------
(State or other  jurisdiction of              (IRS Employer Identification No.)
 incorporation  or  organization)



    802 E. WINCHESTER AVE., SUITE 100, MURRAY, UT            84107
    ---------------------------------------------          ----------
      (Address of principal executive offices)             (Zip Code)

         Registrants' telephone number, including area code    (801) 290-1101
                                                               ---------------

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, $0.01 par  value,outstanding as of November 12 , 2001 - 92,213,928
shares


                                       1
<PAGE>

                         Part 1 - Financial Information

Item 1.  Financial Statements

<TABLE>
<CAPTION>

                        KINAM GOLD INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                 (Dollars in millions except par value of stock)
                                   (Unaudited)

                                                                              September 30          December 31
                                                                                 2001                   2000
                                                                              ---------------     ----------------

ASSETS
     Current
<S>                                                                              <C>                  <C>
         Cash and equivalents                                                    $   17.7             $   23.3
         Inventories                                                                 36.9                 51.6
         Receivables                                                                 13.6                 13.7
         Other                                                                        4.6                  4.2
                                                                                 --------             --------
            Current assets                                                           72.8                 92.8

     Property, plant and equipment, net                                             271.8                266.7
     Other                                                                           13.4                 13.3
                                                                                 --------             --------

                                                                                 $  358.0             $  372.8
                                                                                 ========             ========

LIABILITIES AND SHAREHOLDERS' EQUITY (CAPITAL DEFICIENCY)
     Current
         Demand loan                                                             $   73.6             $   73.6
         Current maturities of long-term debt                                        39.1                 30.5
         Accounts payable, trade                                                     11.2                 14.0
         Accrued and other current liabilities                                       12.9                 16.6
         Reclamation reserve, current portion                                         2.1                  3.6
                                                                                 --------             --------
           Current liabilities                                                      138.9                138.3

     Advance from parent                                                            234.8                219.9
     Long-term debt                                                                  27.8                 77.2
     Reclamation reserve, non-current portion                                        31.0                 30.0
     Other                                                                            6.8                 11.5
                                                                                 --------             --------
                                                                                    439.3                476.9
                                                                                 --------             --------

     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                         0.9                  0.9
         Paid-in capital                                                            453.6                412.9
         Accumulated deficit                                                       (537.6)              (519.7)
                                                                                 --------             --------
             Total shareholders' equity (capital deficiency)                        (81.3)              (104.1)
                                                                                 --------             --------

             Total liabilities and shareholders' equity (capital deficiency)     $  358.0             $  372.8
                                                                                  ========             ========
</TABLE>

         The accompanying notes are an integral part of these statements

                                       2
<PAGE>

<TABLE>
<CAPTION>

                        KINAM GOLD INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in millions except per share amounts)
                                   (Unaudited)

                                                                      Three Months Ended             Nine Months Ended
                                                                          September 30                  September 30
                                                                     2001           2000           2001          2000
                                                                 -------------  -------------  -------------  ------------

<S>                                                                    <C>            <C>           <C>           <C>
Revenues                                                               $ 46.4         $ 44.7        $ 147.3       $ 149.3
                                                                 -------------  -------------  -------------  ------------

Costs and operating expenses :
     Cost of sales                                                       32.2           31.2          101.9         107.8
     Depreciation and depletion                                          20.3           15.4           52.8          51.7
     General and administrative                                           0.1            0.4            0.8           0.8
     Exploration                                                          0.7            0.6            2.3           2.1
                                                                 -------------  -------------  -------------  ------------
     Total costs and operating expenses                                  53.3           47.6          157.8         162.4
                                                                 -------------  -------------  -------------  ------------

Loss from operations                                                     (6.9)          (2.9)         (10.5)        (13.1)

     Interest expense                                                    (1.2)          (2.3)          (4.3)         (7.9)
     Interest income                                                      0.2            0.4            1.1           2.1
     Other income                                                         1.1            1.4            3.7           4.1
                                                                 -------------  -------------  -------------  ------------

Loss before income taxes                                                 (6.8)          (3.4)         (10.0)        (14.8)

Income tax expense                                                       (1.3)          (1.6)          (2.8)         (3.4)
                                                                 -------------  -------------  -------------  ------------

Net loss                                                                 (8.1)          (5.0)         (12.8)        (18.2)

Preferred stock dividends                                                (1.7)          (1.7)          (5.1)         (5.1)
                                                                 -------------  -------------  -------------  ------------

Loss attributable to common shares                                     $ (9.8)        $ (6.7)       $ (17.9)      $ (23.3)
                                                                 =============  =============  =============  ============

Per common share:
     Net basic and diluted loss                                       $ (0.11)       $ (0.07)       $ (0.19)      $ (0.25)

Weighted average number of common shares outstanding                     92.2           92.2           92.2          92.2
</TABLE>

   The accompanying notes are an integral part of these financial statements.


                                       3
<PAGE>

<TABLE>
<CAPTION>

                        KINAM GOLD INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (Dollars in millions)
                                   (Unaudited)
                                                                            Three Months Ended           Nine Months Ended
                                                                              September 30                  September 30
                                                                         2001           2000            2001            2000
                                                                      ------------  -------------   -------------   -------------

<S>                                                                        <C>            <C>            <C>             <C>
Cash flows from operating activities
     Net loss                                                              $ (8.1)        $ (5.0)        $ (12.8)        $ (18.2)
     Adjustments to reconcile net loss to cash
         flow provided from operations:
         Depreciation and depletion                                          20.3           15.4            52.8            51.7
         Decrease in reclamation reserve                                     (0.2)          (0.7)           (0.5)           (0.3)
         Decrease (increase)  in working capital items
            Accounts receivable                                              (1.0)           1.8             0.4             2.0
            Inventories                                                       3.6              -             8.3             3.9
            Other assets                                                     (1.1)          (0.8)           (0.4)           (1.7)
            Accounts payable and accrued liabilities                         (3.2)           5.7            (6.5)           (3.6)
         Other                                                               (1.7)          (2.1)           (4.8)           (6.5)
                                                                      ------------  -------------   -------------   -------------
            Cash flow provided from operating activities                      8.6           14.3            36.5            27.3
                                                                      ------------  -------------   -------------   -------------

Cash flows used in investing activities:
     Capital expenditures                                                    (6.7)          (6.6)          (17.3)          (13.1)
                                                                      ------------  -------------   -------------   -------------
            Cash flow used in investing activities                           (6.7)          (6.6)          (17.3)          (13.1)
                                                                      ------------  -------------   -------------   -------------

Cash flow provided from (used in) financing activities
     Repayments of financings                                                (5.4)          (2.3)          (41.4)          (18.5)
     Proceeds from financings from parent                                     5.2            0.5            14.9             1.8
     Proceeds from financings                                                 1.7              -             1.7               -
     Preferred dividends paid                                                   -              -               -            (3.4)
                                                                      ------------  -------------   -------------   -------------
            Cash flow provided from (used in) financing activities            1.5           (1.8)          (24.8)          (20.1)
                                                                      ------------  -------------   -------------   -------------

Net increase (decrease) in cash and cash equivalents                          3.4            5.9            (5.6)           (5.9)

Cash and cash equivalents at beginning of period                             14.3           13.3            23.3            25.1
                                                                      ------------  -------------   -------------   -------------

Cash and cash equivalents at  end of period                                $ 17.7         $ 19.2          $ 17.7          $ 19.2
                                                                      ============  =============   =============   =============

Supplementary disclosure of cash flow information:
     Cash paid for :  Interest                                              $ 1.3          $ 1.7           $ 5.1           $ 7.9
                           Income taxes                                     $ 0.7          $ 1.7           $ 2.8           $ 4.4
</TABLE>

         The accompanying notes are an integral part of these statements

                                       4
<PAGE>


Condensed notes to consolidated financial statements

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 audited  financial
statements  and notes thereto  contained in the Company's  annual report on Form
10-K for the year ended December 31, 2000.

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  and on  July  12,  2001  acquired  51.4 % of  the  Company's  outstanding
preferred stock.

2.       Economic Dependence

The Company relies solely on Kinross for funding the portion of operating costs,
capital  expenditures,  general  corporate  expenditures  and debt and  interest
payments not funded by cash flow provided from  operating  activities.  Assuming
the price of gold remains at current levels the Company  anticipates  additional
borrowings  from its parent.  While Kinross has funded these  obligations in the
past it is under no obligation to do so, and there can be no assurance  that the
Company may not have to seek funding from other  sources in the future.  Kinross
has agreed to continue to support the Company for the remainder of 2001. Kinross
also provides  substantially all administrative  and management  services to the
Company at no cost. Accordingly the financial statements do not reflect a charge
for these services.

3.       Inventories

Inventories consist of the following (in millions):

                                         September 30    December 31
                                            2001           2000
                                        -------------  -------------

Gold
     Finished goods                           $ 10.8         $ 16.8
     Work in progress                            0.7            2.2
Materials and supplies                          25.4           32.6
                                        -------------  -------------
                                              $ 36.9         $ 51.6
                                        =============  =============



                                       5
<PAGE>



4.       Long-Term Debt

Long-term  debt  repayments  during the first nine months of 2001 totaled  $41.4
million.  Debt  repayments  were  comprised  of $2.9  million of  capital  lease
repayments at Fort Knox,  $0.4 million of capital  lease  repayments at Refugio,
$10.4 million of  project-financing  debt repayments at Kubaka,  $5.7 million of
subordinated  debt  repayments at Kubaka and $22.0 million of debt repayments on
the Alaska Industrial Revenue bonds.

5.       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 September 30, the Company had no outstanding  hedge
contracts.

During  July 1998,  the  Company  liquidated  its hedge  position  and  received
approximately  $45.9 million in cash. In connection  with this  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. The Company realized $2.4 million
in revenue for the first nine months of 2001  relating  to the  amortization  of
these hedge gains.

6.       Commitments and Contingencies

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  are  generally   becoming  more
restrictive.  Any  changes in these laws and  regulations  could  impact  future
estimated site restoration  costs.  Total site restoration costs for the Company
at the end of current  operating  mine lives are  estimated to be  approximately
$36.0 million.

7.       Transactions with Affiliates

On January 1, 2001,  the Company  entered into an agreement  with a wholly owned
subsidiary  of  Kinross  to  acquire  all of the  outstanding  shares of La Teko
Resources Inc. Since this was a related party  transaction  which did not result
in a  substantive  change in  ownership,  the  transaction  was  recorded at the
carrying  value of La Teko's  assets which was  approximately  $36.0  million at
December 31, 2000.  The assets of La Teko included the Ryan Lode project and 35%
of the True North project which commenced production in early 2001. The ore from
the True North project is being processed through the Fort Knox mill.

On  July  12,  2001  Kinross  acquired  945,400  of  the  1,840,000  issued  and
outstanding preferred shares of Kinam.

8.       Presentation

Certain of the financial information for fiscal 2000 has been reclassified to be
consistant with the current year presentation.


                                       6
<PAGE>



Production Results

The  following  table  sets  forth  the  Company's  ounces  of  gold  equivalent
production,  production  costs,  ounces of gold sold and average realized prices
for the three months and nine months ended September 30, 2001and 2000.

<TABLE>
<CAPTION>

                                                                   Three Months Ended              Nine Months Ended
                                                                      September 30                  September 30
                                                                2001              2000           2001           2000
                                                          ------------------  -------------  -------------   ------------

<S>                                                                 <C>             <C>           <C>            <C>
Gold equivalent production (ounces)
     Fort Knox                                                      101,610         88,838        306,700        250,214
     Kubaka                                                          68,272         61,629        174,747        182,268
     Refugio                                                          8,455         16,469         57,081         64,151
     Hayden Hill                                                          -          2,459          1,887          7,847
     Guanaco                                                              -          3,431          1,718         13,399
                                                          ------------------  -------------  -------------   ------------
         Consolidated gold production                               178,337        172,826        542,133        517,879
                                                          ==================  =============  =============   ============

Cash operating costs ($ per ounce of gold
equivalent produced)
     Fort Knox                                                          212            206            197            219
     Kubaka                                                             108            105            121            113
     Refugio                                                            288            305            238            275
     Hayden Hill                                                          -            191            267            208
     Guanaco                                                              -            279            413            236
                                                          ------------------  -------------  -------------   ------------
         Consolidated cash operating costs                              176            181            178            189
                                                          ==================  =============  =============   ============

Total cash costs ($ per ounce of gold
equivalent  produced)(1)
     Fort Knox                                                          212            206            197            219
     Kubaka                                                             133            135            142            148
     Refugio                                                            304            320            251            289
     Hayden Hill                                                          -            198            277            220
     Guanaco                                                              -            304            436            257
                                                          ------------------  -------------  -------------   ------------
         Consolidated total cash costs                                  186            193            186            204
                                                          ==================  =============  =============   ============

Total production costs ($ per ounce of gold
 equivalent produced)(2)
     Fort Knox                                                          326            313            314            330
     Kubaka                                                             237            247            244            288
     Refugio                                                            304            326            251            351
     Hayden Hill                                                          -            198            277            220
     Guanaco                                                              -            304            436            257
                                                          ------------------  -------------  -------------   ------------
         Consolidated total production costs                            291            289            285            314
                                                          ==================  =============  =============   ============

Ounces of gold sold                                                 167,346        150,968        539,688        509,256

Average realized price per ounce of gold                              $ 277          $ 296          $ 273          $ 293
</TABLE>

(1) Total cash costs include cash operating  costs plus royalties and applicable
production taxes.
(2) Total  production  costs  include  total  cash costs  plus  reclamation  and
depreciation and depletion.

                                       7
<PAGE>


Consolidated Results

Third Quarter

The Company reported a third quarter 2001 net loss of $8.1 million,  or $.11 per
share attributable to common shares after preferred  dividends,  compared with a
2000 third quarter net loss of $5.0 million,  or $.07 per share  attributable to
common shares after  preferred  dividends.  The Company's  share of attributable
gold  equivalent  production of 178,337  ounces at a total cash cost of $186 per
ounce during the third quarter of 2001  compared with 172,826  ounces at a total
cash cost of $193 per ounce in the third quarter of 2000. Increased depreciation
rates related to the True North project resulted in an increase in the loss from
operations  to $6.9  million  in the third  quarter of 2001,  despite  increased
production  at a lower total cash cost per ounce,  compared with $2.9 million in
the  third  quarter  of 2000.  Cash  flow  provided  from  operating  activities
decreased  to $8.6  million  in the third  quarter of 2001  compared  with $14.3
million in the third quarter of 2000, due to changes in working capital.

Nine Months

For the first  nine  months  of 2001 the  Company  reported  a net loss of $12.8
million,  or $.19 per  share  attributable  to  common  shares  after  preferred
dividends,  compared  with a net  loss  of  $18.2  million,  or $.25  per  share
attributable to common shares after preferred dividends in the first nine months
of 2000.  The  Company's  share of gold  equivalent  production  increased 5% to
542,133  ounces and total cash costs  decreased by 9% to $186 per ounce compared
with  517,879  ounces at a total  cash cost of $204 per ounce in the first  nine
months of 2000. Cash flow provided from operating  activites  increased to $36.5
million  in the first nine  months of 2001  compared  with $27.3  million in the
first nine months of 2000.  Increased  production at a significantly lower total
cash cost coupled with lower interest expense offset a $20 per ounce decrease in
the realized  price  resulting in a lower net loss and increased  cash flow from
operating activities in the first nine months of 2001.

Revenues

Gold Sales

The  Company's  share of gold sales was 167,346  ounces in the third  quarter of
2001  compared with 150,968  ounces in the third  quarter of 2000.  Revenue from
gold sales was $46.4  million in the third  quarter of 2001  compared with $44.7
million in the third  quarter of 2000.  Revenue in 2001  increased due to higher
gold sales  partially  offset by lower average  realized  prices per ounce sold.
During the third quarter of 2001,  the Company  realized $277 per ounce compared
with $296 per ounce in 2000.  The  average  spot price for gold during the third
quarter  of 2001 was $274 per ounce  compared  with $277 per ounce in 2000.  The
realized  price  exceeded  the spot  price due to the  amortization  of the gain
realized when a significant hedge position was closed in 1998.

The Company's share of gold sales was 539,688 ounces in the first nine months of
2001 compared with 509,256 ounces in the first nine months of 2000. Revenue from
gold sales was $147.3  million in the first nine  months of 2001  compared  with
$149.3  million in the first nine months of 2000.  Revenue in 2001  decreased as
higher gold sales failed to offset lower average realized prices per ounce sold.
During the first nine  months of 2001,  the company  realized  $273 per ounce of
gold compared with $293 per ounce of gold in the first nine months of 2000.  The
average  spot price for gold  during the first nine  months of 2001 was $269 per
ounce compared with $282 per ounce in 2000. The realized price exceeded the spot
price due to the  amortization  of the gain realized  when a  significant  hedge
position was closed in 1998.

                                       8
<PAGE>

Interest and other income

Interest income decreased to $0.2 million in the third quarter of 2001 from $0.4
million in the third quarter of 2000. For the first nine months of 2001 interest
income was $1.1  million in 2001  compared  with $2.1  million in the first nine
months of 2000. Interest income declined due to lower interest rates.

Other income in the third  quarter of 2001 was $1.1 million  compared  with $1.4
million  in the third  quarter of 2000.  In the first nine  months of 2001 other
income was $3.7 million  compared with $4.1 million in 2000. The management fees
earned from the Kubaka and Refugio operations are included in other income.

Operating Performance and Costs

Total cost of sales was $32.2 million in the third quarter of 2001 compared with
$31.2  million in the third  quarter of 2000.  Total cash costs of $186 per gold
equivalent  ounce in the  third  quarter  of 2001  compared  with  $193 per gold
equivalent  ounce in the third quarter of 2000. Total cost of sales decreased at
Refugio  due to the  suspension  of  operations,  which was offset by  increased
spending  in Alaska with the True North  operations  achieving  full  production
during the quarter.

For the first nine months of 2001 cost of sales decreased to $101.9 million from
$107.8  million in the first nine  months of 2000.  Total cash costs of $186 per
gold  equivalent  ounce in the first nine months of 2001  compared with $204 per
gold  equivalent  ounce in 2000. Due to lower total cash costs per ounce,  total
cost of  sales  decreased  despite  significantly  higher  sales  due to  higher
production.

Primary Operations

Fort Knox Mine

Gold equivalent  production  during the third quarter of 2001 was 101,610 ounces
compared  with 88,838 in 2000.  Total cash costs for the third quarter were $212
per ounce of gold  equivalent  compared with $206 in 2000.  Although  lower than
anticipated  grade from the upper benches of the True North open pit resulted in
lower than  planned  production  and,  consequently  higher total cash costs per
ounce  during  the  third  quarter,  improvements  at  this  new  operation  are
anticipated.  For the first nine months of 2001 gold  equivalent  production was
306,700  ounces  compared  with 250,214 in 2000.  Total cash costs for the first
nine months were $197 per ounce of gold  equivalent  compared with $219 in 2000.
Capital  expenditures  in Alaska were $6.6 million  during the quarter and $16.9
million  for the  first  nine  months  of  2001.  The  majority  of the  capital
expenditures  for the quarter were required to purchase nine haulage  trucks for
the True  North  ore  haulage,  development  drilling  and the  construction  of
maintenance  facilities at True North.  The slower than planned  optimization of
the new True North  operation has reduced  expected  production for 2001 at Fort
Knox to  approximately  415,000 gold  equivalent  ounces at a total cash cost of
slightly over $200 per ounce.  The objective at Fort Knox remains to continue to
grow annual gold production towards 450,000 ounces of gold equivalent in 2002.

                                       9
<PAGE>


Kubaka Mine (54.7% ownership interest)

Kinam's share of gold equivalent production during the third quarter of 2001 was
68,272  ounces  compared  with  61,629 in 2000.  Total  cash costs for the third
quarter were $133 per ounce of gold  equivalent  compared with $135 in 2000. The
throughput at the Kubaka  processing  plant continues to exceed plan. The higher
tonnage  throughput  to  date  has  had no  material  impact  on  recoveries  as
recoveries  continue  to exceed 97%.  For the first nine months of 2001  Kinam's
share of gold equivalent  procuction was 174,747 ounces compared with 182,268 in
2000.  Total cash costs for the first  nine  months  were $142 per ounce of gold
equivalent  compared with $148 in 2000. These  exceptional  total cash costs per
ounce at Kubaka included in excess of $20 per ounce of royalty based taxes.  The
Kubaka operations continues to exceed plan in 2001. Therefore,  Kinam's share of
estimated  gold  equivalent  production  for 2001 has increased by an additional
6,000 ounces to  approximately  231,000  ounces while total cash costs per ounce
for 2001  are now  estimated  to be $145  per  ounce,  3%  lower  than  previous
estimates.  Current gold equivalent  production  expectations for 2002 at Kubaka
are 415,000 ounces (100% basis), comparable to production planned in 2001.

Refugio Mine (50% ownership interest)

Kinam's share of gold equivalent production during the third quarter of 2001 was
8,455  ounces  compared  with  16,469 in 2000.  Total  cash  costs for the third
quarter were $304 per ounce  compared  with $320 per ounce in 2000.  The Refugio
operations  commenced  residual  leaching and the open pit mining activites were
suspended  June 1, 2001. For the first nine months of 2001 Kinam's share of gold
equivalent production was 57,081 ounces compared with 64,151 in 2000. Total cash
costs for the first nine months were $251 per ounce of gold equivalent  compared
with $289 in 2000.  All of the leased  mining  equipment  has been  disposed  of
eliminating   further  financial   obligations  under  these  leases.   Leaching
operations  continue and the Chilean  summer will be spent  reviewing  the water
balance and the estimated  gold  inventory on the leachpad to determine the best
time to suspend  residual  leaching.  Estimated gold  equivalent  production and
total cash costs per ounce for 2001 at the Refugio  operations  remain unchanged
from previous estimates.

Other Expenses

The Company's  third quarter  depreciation  and depletion  expense  increased to
$20.3  million in 2001 compared with $15.4 million in the third quarter of 2000.
The increase was due to higher sales and higher  depreciation  rates  associated
with the True  North ore offset by the effect of the  writedown  of the  Refugio
property  in  December  of 2000.  For the first  nine  months  depreciation  and
depletion  expense increased to $52.8 million compared with $51.7 million in the
first nine months of 2000.

General and administrative  expense of $0.1 million in the third quarter of 2001
compared  with $0.4  million in the third  quarter  of 2000.  For the first nine
months of 2001 general and administrative expense was $0.8 million compared with
$0.8 million in the first nine months of 2000.  Substantially all management and
administrative services are provided by Kinross to the Company at no cost.

Exploration  expense  increased  to $0.7  million  in the third  quarter of 2001
compared  with $0.6  million  in the third  quarter  of 2000.  In the first nine
months of 2001  exploration  expense was $2.3 million compared with $2.1 million
in the first nine months of 2000. The Company  focused its  exploration  efforts
near existing processing plants.

Interest  expense  decreased to $1.2  million in the third  quarter of 2001 from
$2.3 million in the third quarter of 2000 due to lower debt  balances  primarily
due to the early  partial  repayment  of the Alaska  Industrial  Revenue  Bonds.
Interest expense was $4.3 million in the first nine months of 2001 compared with
$7.9 million in the first nine months of 2000. Interest expense decreased due to
lower interest rates and lower debt balances compared to 2000.

                                       10
<PAGE>

Liquidity And Capital Resources

Operating Activities

Cash flow provided from  operating  activities for the third quarter of 2001 was
$8.6 million  compared with $14.3 million in 2000.  For the first nine months of
2001 cash flow provided from  operating  activities  was $36.5 million  compared
with $27.3 million in 2000. Increased gold equivalent production and lower total
cash costs per ounce  positively  affected the cash flow provided from operating
activities for the first nine months of 2001.

Investing Activities

Capital expenditures during the third quarter of 2001 were $6.7 million compared
with $6.6 million in 2000. Capital spending at Fort Knox totaled $6.6 million in
the third  quarter,  primarily for the purchase of nine haul trucks for the True
North ore haulage,  development  drilling,  and the  construction of maintenance
facilities at True North.  Capital spending at Kubaka was $0.1 million.  Capital
spending  was  financed by cash flow  provided  from  operating  activities  and
additional capital leases of $1.7 million.

Financing Activities

There  were no  dividends  paid in the  third  quarter  of 2001 as the  Board of
Directors  suspended  the  quarterly  dividend on the $3.75 Series B Convertible
Preferred  Stock  beginning  with the dividend  that was payable in August 2000.
Included  in  paid-in  capital  is  a  $8.6  million  accrual  representing  the
cumulative unpaid dividends.

Paid - in capital  increased by $1.7 million in the third quarter of 2001 due to
the accrual of the preferred dividend. For the first nine months of 2001 paid-in
capital  increased  by $40.7  million.  $35.6  million was due to an  additional
investment by Kinross  representing the carrying value of the assets transferred
to the Company.  The assets  transferred  to the Company  included the Ryan Lode
property and 35% of the True North  property  thereby  increasing  the Company's
share of the True North  property  to 100%.  The  balance is the  accrual of the
preferred dividend.

Long-term debt repayments during the third quarter of 2001 totaled $5.4 million.
Debt repayments for the third quarter of 2001 were primarily comprised of a full
repayment of the Kubaka  subordinated  debt, which allowed Kinross to remove the
letter of credit  issued to the bank as support of this debt.  An  agreement  in
principal  has been  reached  to extend  payment of the  balance of the  project
financing debt at Kubaka, which is currently $7.8 million,  until December 2002.
Kinam's share of this debt is currently  $4.2 million Debt  repayments at Kubaka
were made from cash flow provided from operating activites in Russia.

During the first nine months of 2001 the Company  borrowed  $14.9  million  from
Kinross to partially fund the early repayment of the Alaska  Industrial  Revenue
Bond and capital expenditures at True North.

                                       11
<PAGE>

The Company relies solely on Kinross for funding the portion of operating costs,
capital  expenditures,  general  corporate  expenditures  and debt and  interest
payments not funded by cash flow provided from operating activities. The Company
continues to conserve cash whenever  possible  including  approving only capital
expenditures   necessary  to  sustain  operations,   continued  low  exploration
expenditures,   suspending  the  payment  of  preferred   stock   dividends  and
continually monitoring operating costs at all its operations. Assuming the price
of gold remains at current levels the Company anticipates  additional  borrowing
from Kinross in 2001 to fund the current debt repayment requirements and planned
capital  expenditures,  primarily on the True North  project.  While Kinross has
funded these  obligations  in the past it is under no  obligation to do so after
2001,  and  there  can be no  assurance  that the  Company  may not have to seek
funding from other sources in the future.

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 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:  the  cyclical  and  volatile  price of gold,  risks  and  uncertainties
relating  to  general   domestic  and   international   economic  and  political
conditions, the political and economic risks associated with foreign operations,
cost  overruns,   unanticipated  ground  and  water   conditions,discovering  of
additional  information  that could  affect  reserve  estimates  or  preliminary
indication  of  recoverability,  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
14 to 17 of the Company's  Annual Report on Form 10K dated  December 31, 2000 as
filed  with  the  Securities  and  Exchange  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.

                                       12
<PAGE>



<PAGE>


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  revenues  and net  income  or loss can vary  significantly  with
fluctuations in the market prices of gold. Based on the Company's projected 2001
sales volume,  each $10 per ounce change in the average  realized  price of gold
sales would have an  approximate  $7.25  million  impact on revenues and pre-tax
earnings.

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
held at that time.  The  Company  closed out these  contracts  in 1998 for $45.9
million  in  cash.  The  Company  does not  currently  hold  any  forward  sales
contracts.

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 primarily 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 cash 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 2001 ruble payments of 615 million rubles at an exchange rate
of 30 rubles to one U.S.  dollar,  each 3 rubles change to the U.S. dollar could
result in an approximate $2.0 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  2001 pesos  payments of 3.4 billon  pesos at an exchange  rate of 560
pesos to one U.S.  dollar,  each 50 pesos change to the U.S. dollar could result
in an approximately $0.6 million change in the Company's pre-tax earnings.


                                       13
<PAGE>


3.    Interest Rate Risks

As at September  30, 2001 the Company  carried  $58.6  million of variable  rate
debt,  all  denominated  in U.S.  dollars.  Interest  expense  would  change  by
approximately  $0.6  million per year for every one  percent  change in interest
rates.

                           Part II - Other Information

Item 1.         Legal Proceedings

A lawsuit  has been filed  against  Omolon Gold  Mining  Company,  the owner and
operator of the Kubaka mine, in which Kinam indirectly owns 54.7 % of the issued
and  outstanding  common stock.  The lawsuit was brought in the Magadan  region,
Russia, by a minority  shareholder of Omolon.  Omolon's counsel has advised that
Omolon  has good  defenses  available  to it on the  merits  and they are highly
confident that Omolon will successfully defend this lawsuit.

The  Company is  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 6.         Exhibits and Reports on Form 8-K

(a)      Exhibits - The following exhibits are included as part of this report:

   Exhibit of Number       See Reference Number    Title of Document
   -----------------       --------------------    -----------------
        1                          3               Articles of Incorporation
        2                          3               By Laws


                (b)         Reports on Form 8-K - None


                                   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:  November 12 , 2001