Unformatted text preview: ven and probable mineral reserves are the economically mineable parts of the Company’s measured and
indicated mineral resources demonstrated by at least a preliminary feasibility study. The Company estimates its
proven and probable mineral reserves and measured and indicated and inferred mineral resources based on
information compiled by appropriately qualified persons. The estimation of future cash flows related to proven
and probable mineral reserves is based upon factors such as estimates of foreign exchange rates, commodity
prices, future capital requirements and production costs along with geological assumptions and judgments made
in estimating the size and grade of the ore body. Changes in the proven and probable mineral reserves or
measured and indicated and inferred mineral resources estimates may impact the carrying value of property,
plant and equipment, goodwill, reclamation and remediation obligations, recognition of deferred tax amounts
and depreciation, depletion and amortization.
(b) Purchase Price Allocation
Applying the acquisition method to business combinations requires each identifiable asset and liability to be
measured at its acquisition-date fair value. The excess, if any, of the fair value of consideration over the fair
value of the net identifiable assets acquired is recognized as goodwill. The determination of the acquisition-date
fair values often requires management to make assumptions and estimates about future events. The
assumptions and estimates relating to determining the fair value of property, plant and equipment acquired
generally require a high degree of judgment, and include estimates of mineral reserves acquired, future metal
prices and discount rates. Changes in any of the assumptions or estimates used in determining the fair value of
acquired assets and liabilities could affect the amounts assigned to assets, liabilities and goodwill in the purchase
(c) Depreciation, depletion and amortization
Plants and other facilities used directly in minin...
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This document was uploaded on 03/30/2014.
- Spring '14