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Unformatted text preview: 16.3 million at Tasiast and $111.3 million at Chirano, which were recorded within cost of sales in
the consolidated statement of operations. As a result of the impairment charge related to the Tasiast CGU, a tax
recovery of $321.5 million was recorded within tax expense. The impairment charge at Tasiast included a charge of
$2,130.3 million related to goodwill and a charge of $1,286.0 million related to property, plant and equipment. 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, the Company recorded goodwill impairment charges of $2,490.1 million
and $447.5 million at its Tasiast and Chirano CGUs, respectively, which were recorded within cost of sales in the
consolidated statement of operations. The impairment charges were 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
Key assumptions and sensitivity
The key assumptions used in determining the recoverable amount (fair value less costs to sell) for each CGU are
long-term commodity prices, discount rates, cash costs of production, capital expenditures, foreign exchange rates,
and NAV multiples. The Company performed a sensitivity analysis on all key assumptions and determined that, other
than as disclosed below, no reasonably possible change in any of the key assumptions would cause the carrying value
of any CGU carrying goodwill to exceed its recoverable amount.
As at December 31, 2012, the recoverable amounts for the Tasiast and Chirano CGUs are equal to their carrying
amounts, after giving effect to the impairment charges noted above.
At December 3...
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This document was uploaded on 03/30/2014.
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