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test. The resulting non-cash charge was due to a number of factors, including a reduction in the valuation
multiple for Tasiast, and industry-wide increases in capital and operating costs. The impairment charge at
Chirano related entirely to goodwill. During 2011, the Company recorded impairment charges relating to
goodwill at Tasiast and Chirano of $2,490.1 million and $477.5 million, respectively.
The operating loss from continuing operations was $2,246.6 million compared with an operating loss from
continuing operations of $1,575.5 million for 2011. This change was largely due to the impairment charges
noted above and increases in production cost of sales and depreciation, depletion and amortization, partially
offset by an increase in metal prices realized.
The net loss from continuing operations attributable to common shareholders for 2012 was $2,548.8 million
or $2.24 per share compared with a net loss attributable to common shareholders of $2,093.4 million or
$1.84 per share in 2011. The net loss attributable to common shareholders in 2012 was primarily a result of
the operating loss described above. In addition, other income (expense) changed from income of $101.1
million for 2011 to an expense of $2.2 million for 2012. The expense in 2012 was primarily due to an
impairment charge of $24.3 million related to certain of the Company’s available -for-sale investments,
partially offset by net non-hedge derivative gains of $18.0 million due largely to the impact of the fair value MDA4 KINROSS GOLD 2012 ANNUAL REPORT adjustments related to the embedded d erivatives on the Company’s convertible senior notes and Canadian
dollar denominated common share purchase warrants. Included in other income (expense) in 2011 was a
gain on the sale of the Company’s interest in Harry Winston Diamond Corporation (“Harry Winston”) of
$30.9 million, net non-hedge derivative gains of $59.1 million due primarily to the impact of the fair value
adjustments related to the embedded derivatives on the Company’s convertible senior notes and Canadian
dollar denominated common share purchase warrants, and foreign...
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This document was uploaded on 03/30/2014.
- Spring '14