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Unformatted text preview: community relations. I am especially proud that our employees delivered
these results during a challenging and turbulent
year for Kinross and the gold industry as a whole. ii KINROSS GOLD 2012 ANNUAL REPORT Our change process is designed to leverage those core strengths by establishing a few clear
strategic principles to govern our decisions and behaviour as a mining business.
First, we will maintain a strong internal focus on operational fundamentals. Our operations
are at the core of what we do, they drive our profitability and cash flow, and we need to ensure
they are consistently firing on all cylinders, quarter after quarter.
Second, we will stress margin, cash flow, and quality over quantity in our business
decisions. We can’t control the price of gold, but we can control our mine planning process,
and ask if it makes sense to mine low-margin ounces simply to maximize production. We can
change our focus from quantity to quality ounces in our mine planning, production, exploration
and resource strategies.
Third, we are committed to maintaining a strong balance sheet and liquidity position,
in support of our investment grade rating.
Fourth, we will be disciplined in building out our projects. We will aim to reduce capital
requirements and execution risk, and deliver the best long-term return from our growth projects.
These principles underpin a new approach to running our business, which internally we have
branded “The Way Forward.” We have developed a systematic framework to turn our principles
into action at our operations, and to capture opportunities to improve margins and free cash
flow. We launched this new strategy across our operations in the fall of last year, identifying
specific areas of opportunity for value improvement.
We have strengthened our senior management team to better reflect this operations-focused
strategy. I promoted Brant Hinze to the position of President, and expanded the roles of other
key members of the management team. We also recruited Tony Giardini as our Chief Financial
Officer, bringing his proven experience in the mining...
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This document was uploaded on 03/30/2014.
- Spring '14