Our strategy for value distribution
Our operations create economic wealth in our host countries through job creation, procurement and tax payments, which in turn helps in reducing poverty and sustaining strong communities.
Our approach to generating economic value consists of two complementary strategies: first, by maximizing the value generated through rigorous financial discipline and a high-performance operating culture; and second, through careful consideration of our recruitment, procurement, and community investment activities to ensure host countries and communities have opportunities to benefit from that value.
Kinross recorded strong operating results for 2012 and 2013, but like every gold producer, we had to confront the decline in the gold price, which impacted our balance sheet, our cost structure and our share price. In the fall of 2012, the Company launched the Kinross Way Forward to drive improved results by focusing on lower costs, better margins and increased cash flow.
The Kinross Way Forward has driven savings and efficiencies in key areas such as supply chain management, energy use, and general and administrative costs. In some cases, this has meant workforce reductions, as described in the Retrenchment section of this report. It has also meant a reaffirmation of our first priorities of health and safety, environmental protection and community responsibility. As described in the following pages, by understanding our benefit footprint, and by engaging with stakeholders, we have been able to continue to generate local benefits despite the overall challenges in the industry.
For a detailed account of Kinross’ 2012 and 2013 financial performance, see our annual reports on www.kinross.com.