Unformatted text preview: mpact of hedging and the weighting of each currency within
our consolidated cost structure. MDA14 KINROSS GOLD 2012 ANNUAL REPORT Other operating costs for 2013 are forecast to be $90 million, of which $45 million are costs related to the
Tasiast expansion that cannot be capitalized and $30 million are related to La Coipa. General and
administrative expense is forecast to be approximately $180 million. Included in the expenses listed above is
approximately $45 million related to equity-based compensation.
The Company’s tax rate in 2013 is forecast to be in the range of 33% to 39% and depreciation, depletion and
amortization is forecast to be approximately $300 per gold equivalent ounce. KINROSS GOLD 2012 ANNUAL REPORT MDA15 4. PROJECT UPDATES AND NEW DEVELOPMENTS
Tasiast expansion project
As previously disclosed, Kinross expects to complete a pre-feasibility study (PFS) for construction of a midsized CIL mill in the 30,000 tonne per day (tpd) range in the first quarter of 2013. The Company has made the
decision not to proceed with further study or implementation of a 60,000 tpd mill option. Work to date on
the PFS suggests that while a smaller mill would result in lower annual production than the 60,000 tpd
option, it would reduce capital requirements and execution risk, provide improved per ounce margins and
cash flow, and preserve future optionality and expandability. The Company expects to release the results of
the PFS in April.
Work continues on building basic infrastructure improvements at Tasiast, as the new tailings pumping
system, West Branch dump leach pads, interim water supply and other non-process buildings were brought
into operation during the quarter. Work is nearing completion on the permanent camp and work is
progressing well on the power station, truck shop and other facilities. Permitting, engineering and bidding
for a permanent seawater supply system is progressing as expected. Dvoinoye
Construction at Dvoinoye made good progress through the fourth quarter of 2012. The project...
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This document was uploaded on 03/30/2014.
- Spring '14