These amounts do not include expenditures on mine development projects which have not received board approval and which are expected to be incurred should those projects proceed. In addition, we expect to capitalize additional overburden removal work at operating mines under the provisions of new accounting standards (IFRIC 20) as they come into effect in 2013.
We also expect to invest approximately $290 million in 2013 for our share of costs for the Fort Hills oil sands project, which is accounted for as an investment.
Major enhancement projects in 2013 includes: $310 million for Highland Valley's mill optimization project, $25 million for the completion of the Antamina mill expansion; and $80 million at our coal operations, which includes $50 million for the Neptune Terminals expansion. New mine development in 2013 includes $450 million for Quebrada Blanca Phase II, $70 million for Relincho, $120 million for Quintette and $110 million for our Frontier oil sands project.
The amount and timing of actual capital expenditures is also dependent upon being able to secure permits, equipment, supplies, materials and labour on a timely basis and at expected costs to enable the projects to be completed as currently anticipated. We may change capital spending plans for the balance of this year and next, depending on commodity markets, our financial position, results of feasibility studies and other factors.
Foreign Exchange and Debt Revaluation
The sales of our products are denominated in U.S. dollars, while a significant portion of our expenses are incurred in local currencies, particularly the Canadian dollar. Foreign exchange fluctuations can have a significant effect on our operating margins, unless such fluctuations are offset by related changes to commodity prices.
Our U.S. dollar denominated debt is subject to revaluation based on changes in the Canadian/U.S. dollar exchange rate. As at December 31, 2012, all of our U.S. dollar denominated debt is designated as a hedge against our U.S. dollar denominated foreign operations and working capital items. As a result, any foreign exchange gains or losses arising on our designated U.S. dollar debt are recorded in other comprehensive income.
FINANCIAL INSTRUMENTS AND DERIVATIVES
We hold a number of financial instruments and derivatives, which are recorded on our balance sheet at fair value with gains and losses in each period included in other comprehensive income and profit for the period as appropriate. The most significant of these instruments are marketable securities, foreign exchange forward sales contracts, metal-related forward contracts and settlements receivable and payable. Some of our gains and losses on metal-related financial instruments are affected by smelter price participation and are taken into account in determining royalties and other expenses. All are subject to varying rates of taxation depending on their nature and jurisdiction.
QUARTERLY EARNINGS AND CASH FLOW
(in millions, except for share data) 2012 2011---------------------------------------------------------------------------- Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1Revenues $2,730 $2,505 $2,561 $2,547 $2,972 $3,380 $2,796 $2,366Gross profit 719 694 735 918 1,212 1,571 1,197 897EBITDA 527 721 790 781 1,304 1,660 1,461 1,034Profit (note 1) 145 180 268 218 637 814 756 461Earnings per share $ 0.25 $ 0.31 $ 0.46 $ 0.37 $ 1.08 $ 1.38 $ 1.28 $ 0.78Cash flow from operations $ 796 $ 587 $ 768 $ 644 $1,199 1,383 621 754----------------------------------------------------------------------------1. Attributable to shareholders of the company.
