Consolidated production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as production cost of sales as per the consolidated financial statements divided by the total number of gold equivalent ounces sold. This measure converts the Company's non-gold production into gold equivalent ounces and credits it to total production.
Attributable production cost of sales per gold equivalent ounce sold is a non-GAAP measure and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold. This measure converts the Company's non-gold production into gold equivalent ounces and credits it to total production.
Management uses these measures to monitor and evaluate the performance of its operating properties.
---------------------------------------------------------------------------- Consolidated and Attributable Cost of Sales from Continuing Operations Per Equivalent Ounce Sold ------------------------ ------------------------(in millions, except ounces and production cost of Three months ended sales per equivalent ounce) March 31, ------------------------ 2013 2012 ------------------------Production cost of sales from continuing operations - as reported(1) $ 475.7 $ 451.7Less: portion attributable to Chirano non- controlling interest (5.1) (5.4) ------------------------Attributable production cost of sales from continuing operations $ 470.6 $ 446.3 ------------------------ ------------------------Gold equivalent ounces sold from continuing operations 652,197 612,352Less: portion attributable to Chirano non- controlling interest (6,945) (7,825) ------------------------Attributable gold equivalent ounces sold from continuing operations 645,252 604,527 ------------------------ ------------------------Consolidated production cost of sales from continuing operations per equivalent ounce sold $ 729 $ 738Attributable production cost of sales from continuing operations per equivalent ounce sold $ 729 $ 738----------------------------------------------------------------------------(1) "Production cost of sales" is equivalent to "Total cost of sales" per the interim financial statements less depreciation, depletion and amortization and impairment charges.
Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP measure which calculates the Company's non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this measure provides investors with the ability to better evaluate Kinross' production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.
