Reclamation and remediation obligations arise

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Unformatted text preview: ductions is the elimination of the obligation related to the Crixás mine. See Note 6(i). Included in other operating costs for the year ended December 31, 2012 is a $10.8 million charge (year ended December 31, 2011 – $15.7 million) reflecting revised estimated fair values of costs that support the reclamation and remediation obligations for properties that have been closed. The majority of the expenditures are expected to occur between 2013 and 2056. The discount rates used in estimating the site restoration cost obligation were between 0.2% and 10.4% for the year ended December 31, 2012 (year ended December 31, 2011 - 0.1% and 11.1%), and the inflation rate used was between 1.5% and 7.5% for the year ended December 31, 2012 (year ended December 31, 2011 - 1.4% and 5.6%). Regulatory authorities in certain jurisdictions require that security be provided to cover the estimated reclamation and remediation obligations. As at December 31, 2012, letters of credit totaling $204.0 million (December 31, 2011 – $170.8 million) had been issued to various regulatory agencies to satisfy financial assurance requirements for this purpose. The letters of credit were issued against the Company's Letter of Credit guarantee facility with Export Development Canada, the corporate revolving credit facility, and pursuant to arrangements with certain international banks. The Company is in compliance with all applicable requirements under these facilities. FS50 KINROSS GOLD 2012 ANNUAL REPORT 15. COMMON SHARE CAPITAL AND COMMON SHARE PURCHASE WARRANTS The authorized share capital of the Company is comprised of an unlimited number of common shares without par value. A summary of common share transactions for the years ended December 31, 2012 and 2011 is as follows: Year ended December 31, 2012 Number of shares Amount ($) ('000's) Common shares Balance at January 1, Issued: On acquisition of properties Under employee share purchase plan Under stock option and restricted share plan Under Aurelian options Under Bema options Under Underworld options Under Red Back options Conversions: Bema warrants Balance, at end of period Common share purch...
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This document was uploaded on 03/30/2014.

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