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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,
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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- Spring '14