first_imgFull-year production for 2009 is expected to be approximately 2.4 to 2.5 Moz gold equivalent, consistent with previously stated guidance for the year, an increase of some 32% over 2008 production As mentioned previously, Kinross is now in the process of assessing goodwill impairment. As a result, Kinross expects to record a goodwill impairment accounting charge in the range of $900 million to $1.2 billion at year end, related primarily to goodwill recorded in the 2007 Bema acquisition. The average cost of sales for 2008 is expected to be in line with the previously stated guidance range of $425 to $445/oz  gold equivalent Highlights of Kinross Gold’s outlook for 2009 and an update on key developments include: The average cost of sales per gold equivalent ounce for 2009 is expected to be in the range of $390-420center_img Production1 for the full year 2008 is expected to be in line with the previously stated guidance range of 1.8 to 1.9 Moz gold equivalent, an increase of approximately 16% over 2007 production Tye Burt, Kinross President and CEO, commented that the company “had a truly outstanding year in 2008. We delivered on our commitments with record production, the successful start-up of our three growth projects, and two major acquisitions. Kinross went against industry trends by growing our production and cash flow while our costs decreased over the year.“In 2009, we will continue to execute on our strategic plan to grow cash flow and continually improve our portfolio of assets. Our three new projects at Paracatu, Kupol and Buckhorn are expected to increase production by approximately 32% compared to 2008, while significantly reducing our overall cost of sales per ounce. As a result, we expect strong cash flow from our operations in 2009.“We will continue to pursue opportunities to optimise Kinross mines and new projects. At current operations, we will be driving improvements and organic growth, including our heap leach project at Fort Knox, as well as potential expansions at Paracatu and Maricunga which are under preliminary review. We will also be preparing the foundations for our next round of new projects, including Lobo Marte and Fruta del Norte. In the third quarter, we also expect to update the market on options for Cerro Casale.The ramp-up in production at the Paracatu expansion is advancing in accordance with the update provided in the third-quarter 2008 release, with mill throughput reaching about 60% of design capacity as of year-end 2008. The project is expected to reach full capacity within the first quarter of 2009. As part of the expansion project, Kinross expects to commence construction of a new tailing impoundment facility at Paracatu in May of 2009, subject to obtaining the requisite construction permit from government authorities. In addition, the company is negotiating with local parties to acquire those land rights for the facility not presently owned by the company, and expects to complete these negotiations before the end of the second quarter of 2009.Construction of the heap leach project at Fort Knox has been concluded for the season and is scheduled to restart in the spring. Construction is complete on some 78% of the leach pad area required for initial ore placement and leaching. Start-up of leaching operations is scheduled to commence in the third quarter of 2009.As previously announced, on December 16, 2008, Kinross acquired a 40% interest in Minera Santa Rosa SCM from certain subsidiaries of Anglo American. On January 7, 2009, Kinross’ previously announced purchase of the remaining 60% interest in Minera from a subsidiary of Teck Cominco was closed in escrow pending registration of the share transfer by Chilean authorities. The share transfer registration was completed on January 7, 2009 and the company expects to clear escrow and complete the transaction on January 8, 2009, at which time Kinross will own 100% of Minera.Minera owns 100% of the Lobo-Marte gold project located in the Maricunga district of northern Chile, roughly midway between Kinross’ Maricunga and La Coipa mines. This acquisition adds approximately 5.9 Moz of gold resources to the front of Kinross’ development pipeline. Kinross has completed due diligence on the project and plans to begin a development program in early 2009. This work will involve drilling, design, engineering, metallurgical testing, with the expectation of upgrading the current resource base to an NI 43-101 compliant reserve.Kinross has substantially completed the integration of Aurelian Resources, following its recent acquisition of the company, and is actively seeking to advance the Fruta del Norte project. Assuming successful passage of new legislation in support of responsible mining in Ecuador, the company plans to invest about $45 million in 2009 to support recommencement of the in-fill drilling program, advancement of project evaluation and environmental permitting, and implementation of an expanded community relations and corporate responsibility program.At Cerro Casale, work is continuing on the update to the project’s technical-economic feasibility. Progress is being made with the project team substantially in place and numerous trade-off studies well underway. A feasibility study is expected to be completed in the third quarter of 2009. Capital expenditures for 2009 are forecast to be approximately $460 millionlast_img

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