Unformatted text preview: imilarly subject to price volatility based on factors beyond Kinross'
control. Kinross’ future plans rely heavily on mine development projects, which involve significant
The Company’s ability to increase or mainta in present gold and silver production levels is dependent in part
on the successful development of new mines and/or expansion of existing mining operations. Kinross is
heavily dependent on future growth of its major development projects, with the expansio n at the Company’s
Tasiast mine having been identified as the Company’s top development priority. In addition to Tasiast, other
major development projects include the addition of the fourth ball mill at Paracatu, Dvoinoye, Lobo-Marte,
Fruta del Norte, Cerro Casale, the expansion at Maricunga, the extension of mine life at Round Mountain and
the Fort Knox heap leach project in Alaska. Development projects rely on the accuracy of predicted factors
including: capital and operating costs; metallurgical recoveries; reserve estimates; and future metal prices.
Development projects are also subject to accurate feasibility studies, the acquisition of surface or land rights
and the issuance of necessary governmental permits. Unforeseen circumstances, including those related to
the amount and nature of the mineralization at the development site, technological impediments to
extraction and processing, legal restrictions or governmental intervention, infrastructure limitations,
environmental issues, disputes with local communities or other events, could result in one or more or our
planned developments becoming impractical or uneconomic to complete. Any such occurrence could have
an adverse impact on Kinross’ financial condition and results of operations.
In addition, as a result of the substantial expenditures involved in development projects, developments are
prone to material cost overruns versus budget. The capital expenditures and time required to develop new
mines are considerable and changes in cost or construction sche...
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This document was uploaded on 03/30/2014.
- Spring '14