Depreciation depletion and amortization were 13 lower

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Unformatted text preview: d with 2011 due largely to a decrease in gold equivalent ounces sold. KINROSS GOLD 2012 ANNUAL REPORT MDA23 Paracatu (100% ownership and operator) – Brazil Years ended December 31, 2 012 2011 Operating Statistics Tonnes ore mined (000's) Tonnes processed (000's) Grade (grams/tonne) Recovery Gold equivalent ounces: Produced Sold Financial Data (in millions) Metal sales Production cost of sales Depreciation, depletion and amortization Exploration and business development Other Segment operating earnings 55,000 52,976 0.38 72.7% 4 4,434 4 4,532 0 .42 75.2% 466,709 471,387 $ $ 785.1 4 15.4 85.3 284.4 0.2 284.2 Change 1 0,566 8 ,444 (0.04) (2.5%) 4 53,396 4 49,605 $ $ 7 09.7 3 23.9 6 0.7 3 25.1 0 .1 8 .9 3 16.1 1 3,313 2 1,782 $ $ 7 5.4 9 1.5 2 4.6 (40.7) 0 .1 (8.9) (31.9) % Change 24% 19% (10%) (3%) 3% 5% 11% 28% 41% (13%) 100% (100%) (10%) The Company acquired a 49% ownership interest in the Paracatu open pit mine, located in the State of Minas Gerais, Brazil, in the acquisition of TVX Gold Inc. (“TVX”) on January 31, 2003. On December 31, 2004, the Company purchased the remaining 51% of Paracatu from Rio Tinto Plc. 2012 vs. 2011 Tonnes of ore mined were higher by 24% compared with 2011 due to mine sequencing and increased availability of mining equipment. During 2012 tonnes processed were higher by 19% compared with 2011, mainly due to the increased processing capacity provided by the third ball mill and more favourable weather conditions. Grades were lower by 10% compared with 2011 due to planned mine sequencing. Recoveries were 3% lower compared with 2011, mainly due to the decline in gold grades and delays experienced in the desulphurization and flash flotation process. Gold equivalent ounces produced were 3% higher compared with 2011, primarily due to an increase in tonnes processed, partially offset by a decline in grades and recoveries. Gold equivalent ounces sold in 2012 exceeded production due to timing of shipments. In 2012, metal sales increased by 11% compared with 2011 due to an increase...
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