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Unformatted text preview: industry to this key role. KEY ELEMENTS OF THE WAY FORWARD:
The Way Forward is a new way of 1. Mine Plan Optimization looking at our business to drive results 2. Continuous Improvement – focusing on the goals of lower costs, 3. Cost Management and
Labour Productivity better margins, and increased cash flow. 4. Capital Efficiency We have identified seven elements where 5. Supply Chain Management we will be looking for opportunities. 6. Energy Management
7. Working Capital Management iii KINROSS GOLD 2012 ANNUAL REPORT Thanks to our strict operations focus and an outstanding second half, we delivered on our 2012
commitments at our mines. We ended 2012 by exceeding our yearly production guidance with
gold equivalent output of 2.62 million ounces, and achieving the lower half of our cost of sales
guidance range with an average cost of sales of $706 per gold equivalent ounce.
Our Russian and North American operations led the way with excellent performance
throughout the year. Our North American mines are strong, stable open-pit and underground
operations with a track record of operational excellence. At Kupol, in Russia, throughput is now
averaging over 3,500 tonnes per day, exceeding its nameplate capacity of 3,000 tonnes per
day, largely through continuous improvement initiatives and excellent work by our team at site.
In our South America region, we completed the installation of a fourth ball mill at Paracatu in
Brazil in 2012 — the final phase of our Paracatu expansion project — and we are now beginning
to see what we can do without the distractions of a lengthy construction process at site. Our
Tasiast mine in the West Africa region is similarly challenged by the distractions of construction
activity at site, and there is clearly room for operational improvements. One tactic of our Way
Forward strategy is to transfer our best practices between regions, and we will continue to work
with our teams to bring lessons learned in North America and Russia to our South America and
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This document was uploaded on 03/30/2014.
- Spring '14