HispanicBusiness

Concentrate production in the fourth quarter of 2012 of 32,428 tonnes was 25% lower than the corresponding period in 2011 due primarily to lower copper grades at Chelopech and lower volumes of ore processed at Deno Gold. Concentrate production in 2012 of 135,809 tonnes was 8% higher than 2011 due primarily to higher volumes of ore mined and processed at Chelopech, partially offset by lower volumes of ore processed at Deno Gold and lower copper grades at Chelopech. In the fourth quarter and twelve months of 2011, 19,967 tonnes and 60,083 tonnes of oxidized ore, stockpiled on surface from past mining operations, were processed at Deno Gold to supplement mine production and to fully utilize the mill. There was no oxidized ore processed in 2012.

Concentrate smelted at NCS in the fourth quarter of 2012 of 45,823 tonnes was comparable to the corresponding prior year period. Concentrate smelted in 2012 of 159,356 tonnes was 12% lower than the corresponding period in 2011 due primarily to the impact of the Namibian Minister of Environment and Tourism's directives to limit production to 50% and 75% of the smelter's operating capacity during the second quarter of 2012 and the balance of 2012, respectively. The new gas cleaning systems were completed in January 2013 and tie-ins and commissioning will be conducted during the first quarter of 2013. Thereafter, testing will be performed to ensure that the modifications are producing a decrease in emissions before approval is granted to lift the existing curtailment.

Deliveries of concentrate in the fourth quarter of 2012 of 35,261 tonnes were 4% lower than the corresponding period in 2011 due primarily to lower concentrate production at Chelopech. This was partially offset by an inventory drawdown of copper concentrate produced at Deno Gold as deliveries that had been delayed in the first nine months of 2012 as a result of the high lead content in copper concentrate were sold in the fourth quarter of 2012. In the fourth quarter of 2012, payable gold in concentrate sold was up 14% and payable copper in concentrate sold decreased by 3%. Deliveries of concentrate in 2012 of 136,948 tonnes were 11% higher than 2011 due primarily to increased concentrate production at Chelopech, partially offset by lower copper and zinc concentrate production at Deno Gold. Payable copper and gold in concentrate sold in 2012 were up 14% and 23%, respectively, relative to 2011 due primarily to increased production at Chelopech.

Consolidated cash cost of sales per ounce of gold sold, net of by-product credits, in the fourth quarter of 2012 was $193 compared to negative $151 for the fourth quarter of 2011. The quarter over quarter increase was due primarily to lower realized copper prices, higher treatment charges and a higher cash cost per tonne of ore processed at Deno Gold. Cash cost of sales per ounce of gold sold, net of by-product credits, in 2012 was $117 compared to negative $63 during the same period in 2011. This increase was due primarily to higher treatment charges, a higher cash cost per tonne of ore processed at Deno Gold and lower by-product prices, partially offset by higher volumes of payable metals sold.

Cash provided from operating activities, before changes in non-cash working capital, during the fourth quarter and twelve months of 2012 was $30.7 million and $121.1 million, respectively, down $11.1 million and $2.5 million from the corresponding prior year periods due primarily to the same factors affecting adjusted net earnings and higher income tax payments.