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Unformatted text preview: and accumulated as the cost of ore in stockpiles, ore on leach pads, in-process and
finished metal inventories. These deferred amounts are carried at the lower of average cost or NRV.
Write-downs of ore in stockpiles, ore on leach pads, in-process and finished metal inventories resulting from
NRV impairments are reported as a component of current period costs. The primary factors that influence the
need to record write-downs include prevailing and long-term metal prices and prevailing costs for production
inputs such as labour, fuel and energy, materials and supplies, as well as realized ore grades and actual
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 actual recovery percentage 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 actual recovery percentage of gold from a pad will
not be 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 j...
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This document was uploaded on 03/30/2014.
- Spring '14