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Unformatted text preview: cross the Company’s operations .
On May 29, 2012, Kinross announced that it had entered into a purchase and sale agreement to sell its 50%
interest in the Crixás gold mine to a subsidiary of AngloGold Ashanti Ltd. (“AngloGold”). The sale closed on
June 28, 2012 and Crixás has been reclassified as a discontinued operation in the current and comparative
periods. Net earnings from Crixás during 2012 were $43.9 million, inclusive of an after-tax gain on disposal
of $33.8 million. KINROSS GOLD 2012 ANNUAL REPORT MDA5 2011 vs. 2010
Kinross’ attributable production from continuing operations increased by 13% in 2011 compared with 2010
due to the inclusion of production from the Tasiast and Chirano mines, which were acquired by the Company
from Red Back Mining Inc. (“Red Back”) on September 17, 2010, and the increase in the Company’s interest
in Kupol from 75% to 100% on April 27, 2011. In addition, during 2011 production increased at Maricunga
due to higher recoveries, tonnes processed, and grades. These increases were partially offset by lower
production at Paracatu and Kettle-River Buckhorn due to planned lower grades, processing and recoveries,
and at Fort Knox and La Coipa due to an increased reliance on lower grade stockpile ore.
Metal sales from continuing operations in 2011 were $3,842.5 million, a 32% increase compared with 2010.
The increase in metal sales during 2011 was attributable to an increase in metal prices realized and higher
gold equivalent ounces sold. The average realized gold price per ounce from continuing operations
increased by 26% in 2011 compared with 2010, while gold equivalent ounces sold from continuing
operations during 2011 increased to 2,637,601 compared with 2,460,019 in 2010, resulting primarily from
the addition of production from Tasiast and Chirano. During 2011, the Company realized an average gold
price of $1,500 per ounce compared to the average spot gold price of $1,572 per ounce. The variance was
primarily due to the gold hedges that were acquired with the Bema acquisition, as they reduced the average
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This document was uploaded on 03/30/2014.
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