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construction and operation of the mine’s tailings facilities. Therefore, for these reasons, the Company believes KINROSS GOLD 2012 ANNUAL REPORT MDA49 the new law is unenforceable. Due to the brevity of the new law, which does not address enforcement and
penalties, Kinross cannot fully assess the potential implications of its application to ongoing operations at the
Paracatu mine. Kinross will, as may be necessary, challenge this new law and its enforcement. A city
councillor for the municipality has presented an amendment to the law, which would only require
impermeable liners for new tailings facilities that do not have the required environmental controls (thereby
not impacting Kinross’ existing tailings facilities at Paracatu) . The amendment will be voted on by the city
councilors, though the timing of such vote is unknown. Mineral Reserve and Mineral Resource Estimates
The mineral reserve and mineral resource figures are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized.
Market fluctuations in the price of gold may render the mining of mineral reserves and mineral resources
uneconomical and require Kinross to take a write-down of an asset or to discontinue development or
production. Moreover, short-term operating factors relating to the mineral reserves, such as the need for
orderly development of the ore body or the processing of new or different ore grades, may cause a mining
operation to be unprofitable in any particular accounting period.
Proven and probable mineral reserves at Kinross' mines and development projects were estimated as of
December 31, 2012, based upon a gold price of $1,200 per ounce of gold.
Prolonged declines in the market price of gold may render mineral reserves containing relatively lower
grades of gold mineralization uneconomic to exploit and could materially reduce Kinross' mineral reserves.
Should such reductions occur, material write-downs of Kinross...
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- Spring '14