Mda14 kinross gold 2012 annual report other operating

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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.

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