Unformatted text preview: on and remediation costs, production stage mineral
interests and plant expansion costs, the Company uses the units-of-production (“UOP”) method for
determining depreciation, depletion and amortization. The expected useful lives used in the UOP
calculations are determined based on the facts and circumstances associated with the mineral interest. The
Company evaluates the proven and probable reserves at least on an annual basis and adjusts the UOP
calculation to correspond with the changes in reserves. The expected useful life used in determining UOP
does not exceed the estimated life of the ore body based on recoverable ounces to be mined from
estimated proven and probable reserves. Any changes in estimates of useful lives are accounted for
prospectively from the date of the change.
Stripping and other costs incurred in a pit expansion are capitalized and amortized using the UOP method
based on recoverable ounces to be mined from estimated proven and probable reserves contained in the
Land is not depreciated.
Mobile and other equipment are depreciated, net of residual value, using the straight-line method, over the
estimated useful life of the asset. Useful lives for mobile and other equipment range from 2 to 10 years, but
do not exceed the related estimated mine life based on proven and probable reserves.
The Company reviews useful lives and estimated residual values of its property, plant and equipment
Acquired or capitalized exploration and evaluation costs and assets under construction are not depreciated.
These assets are depreciated when they are put into production in their intended use.
The carrying amounts of the Company’s property, plant and equipment are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, then the asset’s
recoverable amount is estimated. In addition, capitalized exploration and evaluation costs are assessed for
impairment upon de...
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This document was uploaded on 03/30/2014.
- Spring '14