This preview shows page 1. Sign up to view the full content.
Unformatted text preview: , plant
and equipment, net of a tax recovery of $321.5 million. The impairment test for Tasiast was based on a
30,000 tonne per day optimized mill model, compared with the 60,000 tonne per day model used for the
2011 annual impairment test. The resulting non-cash charge was due to a number of factors, including a
reduction in the valuation multiple for Tasiast, and industry-wide increases in capital and operating costs.
The impairment charge at Chirano related entirely to goodwill.
During the year ended December 31, 2011, an aggregate non-cash goodwill impairment charge of $2,937.6
million was recorded for Tasiast and Chirano. The Tasiast project represented $2,490.1 million and Chirano
represented $447.5 million of the non-cash goodwill impairment charge. The impairment charge was a
result of changes in market conditions, including industry-wide increases in capital and operating costs, a
decline in industry-wide valuations as at year-end, and the Company’s growing understanding of the Tasiast
project parameters, including its analysis of a draft mine plan. Exploration and business development
Years ended December 31,
Exploration and business development 2012
$ 2012 vs 2011 2011
234.9 $ Change
1 34.5 $ 1 00.4 % Change
75% In 2012, exploration and business development expenses were $234.9 million, compared with $134.5 million
for 2011. Of the total exploration and business development expense, expenditures on exploration totaled
$173.9 million compared with $102.8 million for 2011. Capitalized exploration expenses, including
capitalized evaluation expenditures, totaled $30.9 million compared with $112.3 million for 2011. The
decrease in capitalized exploration resulted largely from the shift in the nature of exploration activity at
Tasiast, from definition drilling for the Tasiast deposit footprint, which is capitalized, to exploration drilling
along the 80 kilometre belt located outside of this footprint, which are expensed.
During 2012, Kinross was active on 39 mine sites, near-mine and greenfield initiatives, with drilling across all
projects totaling 614,000 meters. MDA30 KINROSS GOLD 2012 ANNUAL REPORT General and administrative
View Full Document
- Spring '14