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Unformatted text preview: acquired all of the outstanding common shares of Red Back that it did not previously own. The Company owns a 90% interest in the Chirano mine. A 10% carried interest is held by the government of Ghana. 2012 vs. 2011 Tonnes of ore mined increased by 21% compared with 2011 due to the startup of the Paboase underground mine and planned acceleration of mining in the Obra open pit. Tonnes of ore processed were 5% lower compared with 2011 due to lower mill throughput as a result of power supply issues and increased planned maintenance. Grade processed increased by 18% compared with 2011, largely due to increased grades from the Akwaaba and Paboase deposits. Recoveries increased by 2% compared with 2011 as a result of improvements in plant efficiency and utilization. Gold equivalent ounces produced were higher by 12% compared with 2011, primarily due to higher grades and recoveries, partially offset by lower mill tonnes processed. Gold equivalent ounces sold in 2012 exceeded production due to timing of shipments. Metal sales were 20% higher compared with 2011. The increase in gold equivalent ounces sold accounted for 68% of the $83.4 million increase, with the remainder attributable to an increase in metal prices realized. Production cost of sales increased by 18% compared with 2011, largely due to an increase in gold equivalent ounces sold combined with higher royalties, labour and contractor costs. Depreciation, depletion and amortization were 71% higher compared with 2011, primarily due to higher gold equivalent ounces sold and a reduction in mineral reserves as at December 31, 2011, and an increase in depreciable asset base. The Company recorded a goodwill impairment charge of $111.3 million during the year ended December 31, 2012 as a result of the Company’s annual assessment of the carrying value of its CGUs. MDA28 KINROSS GOLD 2012 ANNUAL REPORT Discontinued operations Crixás On May 29, 2012, Kinross announced that it had entered into a purchase and sale agreement to sell its 50% interest in the Crixás gold mine to a subsidiary of AngloGold. The sale closed on June 28, 2012 and Crixás has been reclassified as a discontinued operation in the current and comparative...
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This document was uploaded on 03/30/2014.

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