28 F ina nc ia l i nst r u men t s The e s t ima t e d fa ir va l ue of fin a n c ia l i n s tr u me n ts is d e t e r m in e d a t disc r e te p oin ts i n t im e b a s e d o n the r e l e va n t ma r k e t i n fo r m a tion The fa i r va l ue is c a l c ul a te d wi th r e fe r e n c e to i n dic a tive ma r k e t r a te s us i n g i n dus t r y va l ua tio n t e c hni q ue s a n d a p pr o pr ia t e m ode l s Inco me a nd min ing t a x es Sign i fica n t j udg e m e n t is r e q uir e d i n d e t e r min i n g the p r ovis ion for i n c om e a n d mi n in g ta x e s due to the c om pl e xi ty of l e gisl a tion The r e a r e ma n y tr a n s a c tio n s a n d c a l c ul a tion s for whic h the ul tima t e ta x de t e r min a tio n is unc e r ta i n du r in g th e o r din a r y c ou r s e of b us i n e s s Th e C om p a n y r e c og n ise s l ia b il itie s fo r a n tic ipa t e d ta x a udit iss ue s b a s e d o n e s ti m a te s o f wh e the r a ddit i on a l t a xe s wi l l b e du e W he r e the f in a l ta x outc o me of th e s e ma tte r s is dif f e r e n t fr o m the a m ount s th a t we r e i n itia l l y r e c o r de d s uc h dif fe r e n c e s wi l l imp a c t th e i n c om e a n d min i n g ta x es a n d de fe r r e d t a x pr ovis i on s i n the pe r iod in whic h su c h de t e r m in a tio n is ma d e A s a t J une 30 2013 th e C o mpa n y r e c or de d a d e f e r r e d in c om e ta x a s s e t of 1 9 4 mi l l ion on th e b a s is tha t th e d e duc ti b l e t e m por a r y d iff e r e n c e s wi l l r e v e r s e i n th e fo r e s e e a b l e futu r e a n d futu r e ta xa b l e pr ofi t wi l l b e a va il a b l e a ga in s t whic h th e te mpo r a r y di ff e r e n c e c a n b e util iz e d F ut ure pr ofi ta b il ity a n d c a s h fl o ws a r e e s ti ma te d b a s e d on e s tima t e d q ua n t i tie s of r e c ove r a b l e gol d e xp e c te d g ol d p r ic e c on s ide r in g c ur r e n t a n d hi s tor ic a l pr ic e s tr e n ds a n d r e l a te d fa c tor s pr oduc tio n l e ve l s op e r a ti n g c osts c a pit a l r e q uir e m e n ts a n d r e c l a ma tion c osts a l l b a s e d o n L if e of M i n e pl a n s M a n a ge m e n t c a r r i e s out a c omp r e h e n s iv e r e vi e w of th e c a r r yi n g a m ount of d e f e r r e d ta x a s s e ts a t e a c h fin a n c ia l r e po r tin g da t e The d e f e r r e d ta x a s s e ts wi l l r e duc e to th e e xt e n t th a t it is n o l on ge r pr o b a b l e tha t s uffici e n t futu r e ta xa b l e pr o fit wi l l b e a va i l a b l e to a l l ow a l l or pa r t o f t he de f e r r e d ta x a s s e t to b e util iz e d A ddit io n a l l y future c ha n ge s in ta x l a ws in the jur isdic t ion s in whic h th e C om pa n y ope r a te s c oul d l imit its a b il ity t o o b ta in ta x de duc tio n s i n fu tur e p e r iods C on t in gen c ies C on tin ge n c ie s c a n b e e ith e r poss ib l e a s s e ts or poss i b l e l ia b il itie s a r ising fr om pa s t e ve n ts whic h b y the ir n a tur e wi l l on l y b e r e s ol ve d wh e n o n e or mor e fu ture e v e n ts n ot whol l y wi th in th e c on t r ol of SAS oc c ur o r fa il to oc c ur T he a s s e s s me n t of s uc h c o n ti n ge n c ie s i n h e r e n tl y i n vol ve s the e xe r c ise o f s ign ifi c a n t judg e m e n t a n d e s tima te s of th e outc om e o f fut ure e v e n ts M ANA G E M E NT S R E PORT ON I NTERN AL C ONT R OL OV E R F I NAN CI AL R E PORT I NG M a n a ge m e n t is r e s po n s ib l e for e s ta b l ish in g a n d ma i n ta i n in g a d e q ua te i n t e r n a l c on tr ol ove r fin a n c ia l r e p or t in g IC F R The C om pa n ys IC F R is in t e n de d to p r ovid e r e a s on a b l e a s s ura n c e r e ga r di n g the r e l ia b il ity of fi n a n c ia l r e p or t in g a n d th e p r e pa r a tion of fi n a n c ia l r e por ts f or e x te r n a l pur p ose s in a c c or da n c e wi th a pp l ic a b l e IF R S IC F R s hou l d in c l ude thos e pol ic i e s a n d p r oc e du r e s tha t e s ta b l ish th e fol l ow in g M a in te n a n c e of r e c or ds in r e a s on a b l e d e ta il tha t a c c ura te l y a n d fa ir l y r e fl e c t the tr a n s a c tion s a n d disp ositio n s of the C om pa n ys a s s e ts R e a s on a b l e a s s ura n c e tha t tr a n s a c tion s a r e r e c o r d e d a s n e c e s s a r y t o pe r mi t pr e pa r a tion of fin a n c ia l r e po r ts i n a c c or da n c e wi th a pp l ic a b l e IF R S R e c e ip ts a n d e xp e n d itur e s a r e o n l y ma de i n a c c or da n c e wi th a uth or iza tion s o f ma n a ge m e n t a n d the B oa r d o f Di r e c t or s a n d R e a s on a b l e a s s ura n c e r e ga r din g pr e v e n ti on or tim e l y d e te c tio n of una uth o r iz e d a c q uis itio n us e or dis positio n o f th e C o mpa n ys a s s e ts tha t c oul d ha ve a ma te r ia l e ff e c t o n the fin a n c i a l r e po r ts