1 0 increase in price effect on earnings before taxes

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Unformatted text preview: axes will reverse against hedged items the contracts relate to, which will be to earnings. KINROSS GOLD 2012 ANNUAL REPORT vi. Liquidity risk The Company manages liquidity risk by maintaining adequate cash and cash equivalent and short-term investment balances (December 31, 2012 - $1,982.7 million in aggregate), by utilizing its lines of credit and by monitoring developments in the capital markets. The Company continuously monitors and reviews both actual and forecasted cash flows. The contractual cash flow requirements for financial liabilities at December 31, 2012 are as follows: Total Long-term debt (a) Derivative liabilities - net (a) $ $ 3,525.5 (7.6) Less than 2 years More than 2, less than 3 years More than 3, less than 5 years More than 5 years $ $ $ $ $ $ $ $ 753.8 (5.7) 1,131.9 (1.9) 374.8 - 1,265.0 - Includes long-term debt, including the current portion, interest and the full face value of the convertible senior notes and senior notes. In the case of the convertible senior notes we have assumed holders will exercise their right to have the Company repurchase the convertible senior notes in March 2013. vii. Credit risk management Credit risk relates to cash and cash equivalents, short-term investments, accounts receivable and derivative contracts and arises from the possibility that any counterparty to an instrument fails to perform. The Company only transacts with highly-rated counterparties and a limit on contingent exposure has been established for any counterparty based on that counterparty's credit rating. As at December 31, 2012, the Company’s maximum exposure to credit risk was the carrying value of cash and cash equivalents, short-term investments, accounts receivable and derivative contracts. KINROSS GOLD 2012 ANNUAL REPORT FS45 13. LONG-TERM DEBT AND CREDIT FACILITIES Interest Rates Corporate term loan facility Convertible senior notes Senior notes (i) (ii) (iii) Kupol loan Finance leases Crixás bank loan and other (iv) (v) Variable 1.75% (a) Nominal Amount $ 1,000.0 452.9 3.625%6.875% Variable 5.62% Variable Less: current portion Long-term debt December 31, 2012 Deferred Carrying Financing Amount (a) C...
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