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Unformatted text preview: RT FS13 related production costs and capital expenditures. The LOM plans have been determined using cash flow
projections from financial budgets approved by senior management covering a 3 year to 50 year period.
Projected future revenues reflect the forecast future production levels at each of the Company’s CGUs as
detailed in the LOM plans. These forecasts may include the production of mineralized material that does not
currently qualify for inclusion in mineral reserve or mineral resource classification. This is consistent with the
methodology used to measure value beyond proven and probable reserves when allocating the purchase price
of a business combination to acquired mining assets. The fair value arrived at as described above, is the
Company’s estimate of fair value for accounting purposes and is not a “preliminary assessment” as defin ed in
Canadian National Instrument 43-101 “Standards of Disclosure for Mineral Projects”.
Projected future revenues also reflect the Company’s estimates of future metals prices, which are determined
based on current prices, forward prices and forecasts of future prices prepared by industry analysts. These
estimates often differ from current price levels, but the methodology used is consistent with how a market
participant would assess future long-term metals prices. For the 2012 annual goodwill impairment analysis,
estimated 2013, 2014, and long-term gold prices of $1,750, $1,750 and $1,500 per ounce, respectively, and
estimated 2013, 2014 and long-term silver prices of $35.00, $33.75 and $25.00 per ounce, respectively, were
used. For the 2011 annual goodwill impairment analysis, estimated 2012, 2013 and long-term gold prices of
$1,800, $1,740 and $1,250 per ounce, respectively, and estimated 2012, 2013 and long-term silver prices of
$37.50, $36.00 and $22.00 per ounce, respectively, were used.
The Company’s estimates of future cash costs of production and capital expenditures are based on the LOM
plans for each...
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This document was uploaded on 03/30/2014.
- Spring '14