When will Tasiast be revalued?Impairment charges reset an asset value on the balance sheet when gold prices or reserves contract, should revaluations not equally apply when prices merit or additional reserves are discovered? How does Kinross otherwise account for the nearly doubling of marketable gold reserves referenced in the March 31st Tisiast feasibility study?
The feasibility study at Tasiast identified a reserve of 9.6 million ounces (nearly a 50% increase). The reserves were estimated at a gold price of $1,200/oz (see page 159). The definition of a reserve is independant of the facility to extract it - and independant of the decision to build a new facility. Property itself is a seperate asset than the plant used to extract the gold.
Kinross has demonstrated it's Tasiast property has significantly more marketable reserves at an assumed gold price of $1,200. The asset value has increased whether or not management decides in 2015 to build the new mill. Will we see a positive asset revaluation in Q2?