3 million on certain of its available forsale

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Unformatted text preview: compared with gains of $11.3 million for 2011. The foreign exchange loss of $2.1 million was due primarily to the translation of net monetary assets denominated in foreign currencies to the US dollar, with the US dollar having strengthened against the Brazilian real at December 31, 2012 relative to December 31, 2011, offset partly by the weakening of the US dollar against the Russian rouble, Chilean peso and Canadian dollar during this period. The foreign exchange gain of $11.3 million in 2011 was due primarily to the translation of net monetary liabilities denominated in foreign currencies to the US dollar, with the US dollar having strengthened at December 31, 2011 relative to December 31, 2010 against the Russian rouble, Chilean peso, Brazilian Real and Canadian dollar. KINROSS GOLD 2012 ANNUAL REPORT MDA31 Net non-hedge derivative gains Net non-hedge derivative gains decreased to $18.0 million compared to $59.1 million in 2011, largely due to the impact of the fair value adjustments related to the embedded derivatives on the Company’s convertible senior notes and Canadian dollar denominated common share purchase warrants. Finance expense Years ended December 31, (in millions) Finance expense 2012 $ 2012 vs 2011 2011 42.1 $ Change 6 5.5 $ % Change (23.4) (36%) Finance expense includes accretion on reclamation and remediation obligations and interest expense. During 2012, finance expense decreased by $23.4 million compared with 2011, of which $19.7 million was related to a decrease in interest expense. The decrease in interest expense compared with 2011 was primarily due to an increase in interest capitalized. Interest capitalized was $99.7 million compared with $26.5 million for 2011. The increase in interest capitalized was largely due to a full year of interest charges recognized in 2012 on the $1.0 billion senior notes issued in August 2011. Capitalized interest also increased due to an increase in qualifying capital expenditures relating to various development projects at Tasiast, Dvoinoye, Paracatu, Maricunga, La Coipa, Fort Knox and Round Mountain. Inco...
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