As at december 31 2012 the recoverable amounts for

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Unformatted text preview: 1, 2012, the estimated recoverable amounts for the Round Mountain, Paracatu and Maricunga CGUs exceed their carrying amounts by approximately $119 million, $1,027 million and $511 million, respectively (December 31, 2011 - $145 million for Round Mountain, $970 million for Paracatu, and $271 million for Maricunga, respectively). The table below shows the amount by which certain key assumptions would be required to change, in isolation, in order for the estimated recoverable amount to equal the carrying amount for each of the Round Mountain, Paracatu, and Maricunga CGUs. FS34 KINROSS GOLD 2012 ANNUAL REPORT Percentage increase (decrease) required for recoverable amount to equal carrying value December 31, 2012 Key assumptions (a) Long-term gold price LOM production cash Round Mountain -26% costs per ounce (b) 14% December 31, 2011 -12% -22% Round Mountain -34% 14% 22% 22% Paracatu Maricunga Paracatu Maricunga -18% -10% 21% 9% (a) See Note 3(ix) for long term gold prices. (b) LOM production cash costs per ounce range from $883 to $944 for Round Mountain, Paracatu, and Maricunga in 2012 and $757 to $879 for Round Mountain, Paracatu, and Maricunga in 2011. However, the Company believes that adverse changes in any of the key assumptions would have associated impacts on certain other inputs into the long-term LOM plans, which may offset, to a certain extent, the impact of the adverse change. 9. JOINT VENTURE INTERESTS The Company conducts a portion of its business through joint ventures where the venturers are bound by contractual arrangements establishing joint control over the ventures. The Company records its proportionate share of assets, liabilities, revenue and operating costs of the joint ventures. As at December 31, 2012, the Company had a joint venture interest in Round Mountain through its 50% ownership in the Smoky Valley Common Operation joint venture. Under the joint venture agreement between the Company and Barrick, the Company is the operator. The Management Committee of the joint venture represents the joint venture partners, authorizes annual programs and budgets...
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This document was uploaded on 03/30/2014.

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