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grades and actual production levels.
Costs are attributed to the leach pads based on current mining costs, including applicable depreciation,
depletion and amortization relating to mining operations incurred up to the point of placing the ore on the
pad. Costs are removed from the leach pad based on the average cost per recoverable ounce of gold on the
leach pad as the gold is recovered. Estimates of recoverable gold on the leach pads are calculated from the
quantities of ore placed on the pads, the grade of ore placed on the leach pads and an estimated percentage
of recovery. Timing and ultimate recovery of gold contained on leach pads can vary significantly from the
estimates. The quantities of recoverable gold placed on the leach pads are reconciled to the quantities of
gold actually recovered (metallurgical balancing), by comparing the grades of ore placed on the leach pads to
actual ounces recovered. The nature of the leaching process inherently limits the ability to precisely monitor
inventory levels. As a result, the metallurgical balancing process is constantly monitored and the engineering
estimates are refined based on actual results over time. The ultimate recovery of gold from a pad will not be MDA44 KINROSS GOLD 2012 ANNUAL REPORT known until the leaching process is completed.
The allocation of costs to ore in stockpiles, ore on leach pads and in-process inventories and the
determination of NRV involve the use of estimates. There is a high degree of judgment in estimating future
costs, future production levels, proven and probable reserves estimates, gold and silver prices, and the
ultimate estimated recovery for ore on leach pads. There can be no assurance that actual results will not
differ significantly from estimates used in the determination of the carrying value of inventories. Provision for reclamation and remediation
The Company assesses its provision for reclamation and remediation on an annual basis or when new
material information becomes available. Mining and exploration activities are subject to various laws and
regulations governing the protection of the environment. In general, these laws and regulations are
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This document was uploaded on 03/30/2014.
- Spring '14