Depreciation depletion and amortization were higher

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Unformatted text preview: sset base associated with the expansion of the site. The increase in exploration and business development costs from $24.8 million in 2011 to $74.6 million in 2012 was largely due to a shift in the nature of exploration activity, from resource definition, which is capitalized, to near mine and district activities, which are expensed. Other costs increased from $12.3 million in 2011 to $37.8 million, primarily due to increases in recruiting, training, administrative and consulting costs. During 2012, the Company recorded impairment charges at Tasiast aggregating $3,416.3 million, comprised of $2,130.3 million related to goodwill and $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 KINROSS GOLD 2012 ANNUAL REPORT MDA27 to a number of factors, including a reduction in the valuation multiple for Tasiast and industry-wide increases in capital and operating costs. Chirano (90% ownership and operator) – Ghana Years ended December 31, 2 012 2011 Operating Statistics Tonnes ore mined (000's) (a) Tonnes processed (000's) (a) Grade (grams/tonne) Recovery Gold equivalent ounces: (a) Produced Sold Financial Data (in millions) Metal sales Production cost of sales Depreciation, depletion and amortization Impairment charges Exploration and business development Other Segment operating loss 4,728 3,381 2.91 93.0% 293,235 298,651 $ $ 3 ,893 3 ,572 2 .47 91.6% 2 61,846 2 62,677 497.7 $ 2 15.3 163.3 111.3 7.8 9.5 6.6 (8.3) $ (a) 8 35 (191) 0 .44 1.4% 3 1,389 3 5,974 8 3.4 3 3.3 6 7.8 (336.2) 3 18.5 4 .8 5 .4 3 08.3 % Change (b) 21% (5%) 18% 2% 12% 14% 20% 18% 71% (75%) 103% 102% nm 97% Tonnes of ore mined/processed, production and sales represents 100%. (b) 4 14.3 $ 1 82.0 9 5.5 4 47.5 (310.7) 4 .7 1 .2 (316.6) $ Change "nm" means not meaningful On September 17, 2010, Kinross...
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