Unformatted text preview: l. Depending on the
prices of gold and silver, cash flow from mining operations may not be sufficient to cover costs of production
and capital expenditures. If, as a result of a decline in gold and/or silver prices, revenues from metal sales
were to fall below cash operating costs, production may be discontinued. The factors that may affect the
price of gold and silver include industry factors such as: industrial and jewelry demand; the level of demand
for the metal as an investment; central bank lending, sales and purchases of the metal; speculative trading;
and costs of and levels of global production by producers of the metal. Gold and silver prices may also be
affected by macroeconomic factors, including: expectations of the future rate of inflation; the strength of,
and confidence in, the US dollar, the currency in which the price of the metal is generally quoted, and other
currencies; interest rates; and global or regional political or economic uncertainties. KINROSS GOLD 2012 ANNUAL REPORT MDA47 If the world market price of gold and/or silver were to drop and the prices realized by Kinross on gold and/or
silver sales were to decrease significantly and remain at such a level for any substantial period, Kinross'
profitability and cash flow would be negatively affected. In such circumstances, Kinross may determine that
it is not economically feasible to continue commercial production at some or all of its operations or the
development of some or all of its current projects, which could have an adverse impact on Kinross' financial
performance and results of operations. Kinross may curtail or suspend some or all of its exploration
activities, with the result that depleted reserves are not replaced. In addition, the market value of Kinross'
gold and/or silver inventory may be reduced and existing reserves may be reduced to the extent that ore
cannot be mined and processed economically at the prevailing prices. Furthermore, certain of Kinross'
mineral projects include copper which is s...
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This document was uploaded on 03/30/2014.
- Spring '14