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The objective for 2013 uses the assumptions listed on page 15.
The table below shows what contributed to the change in operating earnings and operating cash flow between 2012 and 2011.
---------------------------------------------------------------------------- three months ended year ended(millions) December 31 December 31----------------------------------------------------------------------------Higher (lower) copper prices, denominated in US dollars $4 ($28)Higher copper sales volumes 32 220Higher smelter processing charges and freights (1) (1)Higher operating costs in base currency (7) (35)Foreign exchange - decreased operating costs 2 13Higher depreciation (3) (17)Other 6 5----------------------------------------------------------------------------Higher operating earnings, compared to 2011 33 157Changes in working capital (see note 17 on page 52) (29) (42)Change in depreciation 3 17Other (1) -----------------------------------------------------------------------------Higher operating cash flow, compared to 2011 $6 $132----------------------------------------------------------------------------
Capital spending
---------------------------------------------------------------------------- three months ended December 31(thousands) 2012 2011 change----------------------------------------------------------------------------Capital spending $18,000 $9,700 +86%-------------------------------------------------------------------------------------------------------------------------------------------------------- year ended December 31(thousands) 2012 2011 change----------------------------------------------------------------------------Capital spending $43,200 $51,900 -17%------------------------------------------------------------------------------------------------------------------------- objective(thousands) 2013---------------------------------------------Capital spending $49,000---------------------------------------------
We spent $43 million this year mainly on mine development, tailings facility expansion and land purchase. In 2011, we spent $52 million mainly for mine development, tailings facility expansion and plant improvements.
2013 outlook for capital spending
We expect to spend $49 million on capital projects in 2013. The largest expenditures should be for mine development ($22 million), tailings facility expansion ($5 million), debottlenecking ($8 million) and other plant improvement projects.
