In addition the market value of kinross gold andor

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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 uncertainties. 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.

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