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Unformatted text preview: ' investments in mining properties or the
discontinuation of development or production might be required, and there could be material delays in the
development of new projects and reduced income and cash flow.
There are numerous uncertainties inherent in estimating quantities of proven and probable mineral
reserves. The estimates in this document are based on various assumptions relating to gold prices and
exchange rates during the expected life of production and the results of additional planned development
work. Actual future production rates and amounts, revenues, taxes, operating expenses, environmental and
regulatory compliance expenditures, development expenditures and recovery rates may vary substantially
from those assumed in the estimates. Any significant change in these assumptions, including changes that
result from variances between projected and actual results, could result in a material downward or upward
revision of current estimates. Production and Cost Estimates
The Company prepares estimates of future production, operating costs and capital costs for its operations.
Despite the Company’s best efforts to budget and estimate such costs, as a result of the substantial
expenditures involved in the development of mineral projects and the fluctuation and increase of costs over
time, development projects may be prone to material cost overruns. Kinross's actual costs may vary from
estimates for a variety of reasons, including: increased competition for resources and development inputs;
cost inflation affecting the mining industry in general; short-term operating factors; revisions to mine plans;
risks and hazards associated with mining; natural phenomena, such as inclement weather conditions, water
availability, floods, and earthquakes; and unexpected labour shortages or strikes. Operating costs may also
be affected by a variety of factors, including: ore ,grade metallurgy, labour costs, cost of commodities and
other inputs, general inflationary pressures and currency exchange rates. Many of these factors are beyond
Kinross’ control. No assur...
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- Spring '14