Advertisement
Supplementary financial information
Pages 32 and 33 include supplementary financial information about cash costs. These measures do not fall into the category of International Financial Reporting Standards.
We use unit cash cost information as a key performance indicator, both on a segmented and consolidated basis. We have included cash costs as supplementary information because we believe our key stakeholders use these measures as a financial indicator of our profitability and cash flows before the effects of capital investment and financing costs, such as interest.
Since cash costs are not recognized financial measures under International Financial Reporting Standards, they should not be considered in isolation of earnings or cash flows. There is also no standard way to calculate cash costs, so they are not a reliable way to compare us to other companies.
About Inmet
Inmet is a Canadian-based global mining company that produces copper and zinc. We have three wholly-owned mining operations: Cayeli (Turkey), Las Cruces (Spain) and Pyhasalmi (Finland), and have an 80 percent interest in the Cobre Panama development project, currently in construction.
This press release is also available at www.inmetmining.com.
Fourth quarter conference call
Will be held on
-- Friday, February 22, 2013-- 8:30 a.m. Eastern Time-- webcast available at http://events.digitalmedia.telus.com/inmet/022213/index.php or www.inmetmining.com
You can also dial in by calling
-- Local or international: +1.416.340.8530-- Toll-free within North America: +1.877.240.9772
Starting at approximately 10:30 a.m. (ET) Friday, February 22, 2013, a conference call replay will be available
-- Local or international: +1.905.694.9451 passcode 7813798-- Toll-free within North America: +1.800.408.3053 passcode 7813798INMET MINING CORPORATIONSupplementary financial informationCash costs2012 For the year ended December 31 per pound of copper ------------------------------------------ LAS CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------(US dollars)Direct production costs $1.27 $1.08 $2.18 $1.26Royalties and variable compensation 0.11 0.06 - 0.07Smelter processing charges and freight 0.97 0.02 0.95 0.39Metal credits (1.47) - (3.81) (0.84) ------------------------------------------Cash cost $0.88 $1.16 ($0.68) $0.88 ------------------------------------------2011 For the year ended December 31 per pound of copper ------------------------------------------ LAS CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------(US dollars)Direct production costs $1.35 $1.55 $1.93 $1.54Royalties and variable compensation $0.18 0.07 - 0.10Smelter processing charges and freight $1.48 0.01 1.16 0.70Metal credits (2.41) - (4.02) (1.48) ------------------------------------------Cash cost $0.60 $1.63 ($0.93) $0.86 ------------------------------------------Reconciliation of cash costs to statements of earnings2012 For the year ended December 31 per pound of copper ------------------------------------------(millions of US dollars, except LAS where otherwise noted) CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------GAAP reference page 17 page 20 page 22Direct production costs $94 $167 $60 $321Smelter processing charges and freight 67 2 44 113By product sales (101) - (120) (221)Adjust smelter processing and freight, and sales to production basis 1 - (3) (2) ------------------------------------------Operating costs net of metal credits $61 $169 ($19) $211Inmet's share of production (000's) 69,200 149,200 27,800 246,200 ------------------------------------------Cash cost (US dollars) $0.88 $1.16 ($0.68) $0.88 ------------------------------------------2011 For the year ended December 31 per pound of copper ------------------------------------------(millions of US dollars, except LAS where otherwise noted) CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------GAAP reference page 17 page 20 page 22Direct production costs $93 $143 $57 $293Smelter processing charges and freight 69 1 56 126By product sales (128) - (146) (274)Adjust smelter processing and freight, and sales to production basis 4 - 4 8 ------------------------------------------Operating costs net of metal credits $38 $144 ($29) $153Inmet's share of production (000's) 63,300 92,900 30,800 187,000 ------------------------------------------Cash cost (US dollars) $0.60 $1.63 ($0.93) $0.86 ------------------------------------------INMET MINING CORPORATIONSupplementary financial informationCash costs2012 For the three months ended December 31 per pound of copper ------------------------------------------- LAS CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------(US dollars)Direct production costs $1.59 $1.11 $2.30 $1.37Royalties and variable compensation 0.08 0.05 - 0.05Smelter processing charges and freight 1.03 0.02 $1.21 0.42Metal credits (1.68) - ($4.71) (0.99) -------------------------------------------Cash cost $1.02 $1.18 ($1.20) $0.85 -------------------------------------------2011 For the three months ended December 31 per pound of copper ------------------------------------------- LAS CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------(US dollars)Direct production costs $1.15 $1.19 $1.86 $1.27Royalties and variable compensation 0.09 0.05 - 0.06Smelter processing charges and freight 1.13 0.01 0.92 0.50Metal credits (1.71) - (3.36) (1.01) -------------------------------------------Cash cost $0.66 $1.25 ($0.58) $0.82 -------------------------------------------Reconciliation of cash costs to statements of earnings2012 For the three months ended December 31 per pound of copper -------------------------------------------(millions of US dollars, except LAS where otherwise noted) CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------GAAP reference page 17 page 20 page 22Direct production costs $26 $43 $16 $85Smelter processing charges and freight 13 1 12 26By product sales (23) - (39) (62)Adjust smelter processing and freight, and sales to production basis - - 2 2 -------------------------------------------Operating costs net of metal credits $16 $44 ($9) $51Inmet's share of production (000's) 15,500 38,200 7,200 60,900 -------------------------------------------Cash cost (US dollars) $1.02 $1.18 ($1.20) $0.85 -------------------------------------------2011 For the three months ended December 31 per pound of copper -------------------------------------------(millions of US dollars, except LAS where otherwise noted) CAYELI CRUCES PYHASALMI TOTAL----------------------------------------------------------------------------GAAP reference page 17 page 20 page 22Direct production costs $24 $38 $14 $76Smelter processing charges and freight 14 - 13 27By product sales (24) - (32) (56)Adjust smelter processing and freight, and sales to production basis (1) - 1 - -------------------------------------------Operating costs net of metal credits $13 $38 ($4) $47Inmet's share of production (000's) 19,000 31,100 7,700 57,800 -------------------------------------------Cash cost (US dollars) $0.66 $1.25 ($0.58) $0.82 -------------------------------------------INMET MINING CORPORATIONQuarterly review(unaudited)Latest Four Quarters--------------------------------------------------------------------------- 2012 2012(2) 2012 2012(1)(thousands of US dollars, except Fourth Third Second First per share amounts) quarter quarter quarter quarter----------------------------------------------------------------------------STATEMENTS OF EARNINGSGross sales $ 259,868 $ 327,187 $ 251,395 $ 285,527Smelter processing charges and freight (26,155) (30,023) (28,480) (29,338)Cost of sales (excluding depreciation) (91,273) (91,096) (84,634) (79,624) Depreciation (30,079) (37,633) (29,193) (30,067) ------------------------------------------- 112,361 168,435 109,088 146,498Corporate development and exploration (8,620) (7,905) (10,290) (8,801)General and administration (14,896) (12,982) (15,899) (9,745)Investment and other income (16,279) 1,645 45,103 (6,263)Finance costs (2,632) (2,463) (2,379) (2,596)Income tax expense (31,713) (42,135) (31,444) (26,012) -------------------------------------------Income from continuing operations $ 38,221 $ 104,595 $ 94,179 $ 93,081 -------------------------------------------Net income attributable to: Inmet equity holders $ 38,775 $ 104,897 $ 94,458 $ 93,081 Non-controlling interest (554) (302) (279) - ------------------------------------------- $ 38,221 $ 104,595 $ 94,179 $ 93,081 -------------------------------------------Net Income per share Basic $ 0.56 $ 1.51 $ 1.36 $ 1.35 Diluted $ 0.56 $ 1.50 $ 1.35 $ 1.34Previous Four Quarters----------------------------------------------------------------------------(thousands of US dollars, except 2011(1) 2011(1) 2011(1) 2011(1) per share amounts) Fourth Third Second First quarter quarter quarter quarter----------------------------------------------------------------------------STATEMENTS OF EARNINGSGross sales $ 233,394 $ 253,432 $ 214,894 $ 246,191Smelter processing charges and freight (27,330) (35,865) (32,793) (30,581)Cost of sales (excluding depreciation) (90,177) (78,563) (71,302) (76,633) Depreciation (26,835) (26,452) (25,802) (26,180) ------------------------------------------- 89,052 112,552 84,997 112,797Corporate development and exploration (6,333) (4,539) (4,417) (12,984)General and administration (7,487) (9,669) (7,995) (8,155)Investment and other income (3,883) 34,640 4,581 (5,590)Finance costs (2,314) (2,301) (2,310) (2,257)Income tax expense (22,491) (32,696) (20,588) (26,296) -------------------------------------------Income from continuing operations 46,544 97,987 54,268 57,515Income from discontinued operation (net of taxes) - - 80,786 ------------------------------------------- $ 46,544 $ 97,987 $ 54,268 $ 138,301 -------------------------------------------Net income attributable to: Inmet equity holders $ 46,544 $ 97,987 $ 54,268 $ 138,301 Non-controlling interest - - - - ------------------------------------------- $ 46,544 $ 97,987 $ 54,268 $ 138,301 -------------------------------------------Income from continuing operations per share Basic $ 0.67 $ 1.41 $ 0.83 $ 0.94 Diluted $ 0.67 $ 1.41 $ 0.83 $ 0.93Income from discontinuing operations per share Basic $ - $ - $ - $ 1.32 Diluted $ - $ - $ - $ 1.31Net Income per share Basic $ 0.67 $ 1.41 $ 0.83 $ 2.26 Diluted $ 0.67 $ 1.41 $ 0.83 $ 2.241. Information restated from previously reported Canadian dollar amounts toUS dollar amounts at May 31, 2012 exchange rate of US $0.97 per Canadiandollar.2. Investment and other income in the third quarter has been recast as aresult of a reassessment of the embedded derivative relating to the seniorunsecured notes prepayment option as being closely related at inception. Thenet effect was a decrease to investment and other income for the thirdquarter of 2012 and an equivalent decrease in net income in that period.INMET MINING CORPORATIONConsolidated statements of financial position(Unaudited) December December DecemberAs at balance sheet date Note 31, 31, 31,(thousands of US dollars) reference 2012 2011(1) 2010(1)----------------------------------------------------------------------------AssetsCurrent assets: Cash and short term investments 4 $1,541,219 $1,048,457 $316,045 Restricted cash 5 1,291 784 597 Accounts receivable 160,387 101,867 115,628 Inventories 92,399 87,654 69,860 Current portion of bonds and other securities 6 883,599 175,921 52,201 Assets held for sale - - 308,935 -------------------------------------- 2,678,895 $1,414,683 863,266Restricted cash 5 77,050 69,538 67,831Property, plant and equipment 2,632,297 1,772,766 1,680,858Bonds and other securities 6 1,193,088 430,787 311,091Deferred income tax assets 895 317 8,444Other assets 1,643 1,380 2,261 --------------------------------------Total assets $6,583,868 $3,689,471 $2,933,751----------------------------------------------------------------------------LiabilitiesCurrent liabilities: Accounts payable and accrued liabilities 7 282,676 138,596 $132,009 Provisions 8 20,041 13,087 17,106 Current portion of long term debt 9 17,870 - - Liabilities associated with assets held for sale - - 108,338 -------------------------------------- 320,587 $151,683 257,453Long-term debt 9 1,941,989 16,581 16,091Provisions 8 227,146 170,025 157,235Other liabilities 18,243 17,156 17,541Deferred income tax liabilities 104,099 28,351 12,127 --------------------------------------Total liabilities 2,612,064 $383,796 460,447 --------------------------------------Commitments and contingencies 18EquityShare capital 1,541,773 1,541,324 1,054,927Contributed surplus 64,825 64,629 64,028Share based compensation 10 21,896 8,256 6,334Retained earnings 2,176,197 1,851,010 1,527,342Accumulated other comprehensive loss 11 (85,413) (159,544) (179,327) --------------------------------------Total equity attributable to Inmet equity holders $3,719,278 $3,305,675 2,473,304Non-controling interest 12 252,526 - - --------------------------------------Total equity $3,971,804 $3,305,675 $2,473,304 --------------------------------------Total liabilities and equity $6,583,868 $3,689,471 $2,933,751----------------------------------------------------------------------------(1)refer to note 3 for effect of change in presentation currency to the US Dollar(See accompanying notes)INMET MINING CORPORATIONSegmented statements of financial position(unaudited) CORPORATE LAS2012 As at December 31 & OTHER CAYELI CRUCES---------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)AssetsCash and short-term investments $ 1,128,087 $ 148,678 $ 157,903Other current assets 894,911 41,529 148,250Restricted cash 19,804 - 55,629Property, plant and equipment 3,764 134,389 852,955Bonds and other securities 1,092,056 101,032 -Other non-current assets 1,466 1,072 - ------------------------------------ $ 3,140,088 $ 426,700 $ 1,214,737 ------------------------------------LiabilitiesCurrent liabilities $ 61,204 $ 54,111 $ 59,288Long-term debt 1,941,989 - -Provisions 79,809 21,772 69,189Other liabilities 681 - 17,562Deferred income tax liabilities 889 - 91,594 ------------------------------------ $ 2,084,572 $ 75,883 $ 237,633 ------------------------------------ DISCONTINUED COBRE OPERATIONS -2012 As at December 31 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)AssetsCash and short-term investments $ 22,071 $ 84,480 $ - $ 1,541,219Other current assets 51,823 1,163 - 1,137,676Restricted cash 1,617 - - 77,050Property, plant and equipment 70,166 1,571,023 - 2,632,297Bonds and other securities - - - 1,193,088Other non-current assets - - - 2,538 ------------------------------------------------- $ 145,677 $ 1,656,666 $ - $ 6,583,868 -------------------------------------------------LiabilitiesCurrent liabilities $ 19,472 $ 126,512 $ - $ 320,587Long-term debt - - - 1,941,989Provisions 35,800 20,576 - 227,146Other liabilities - - - 18,243Deferred income tax liabilities 11,616 - - 104,099 ------------------------------------------------- $ 66,888 $ 147,088 $ - $ 2,612,064 ------------------------------------------------- CORPORATE LAS2011 As at December 31 & OTHER CAYELI CRUCES---------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)AssetsCash and short-term investments $ 711,427 $ 133,215 $ 131,799Other current assets 183,715 44,728 83,926Restricted cash 16,306 - 51,667Property, plant and equipment 1,196 137,736 869,308Bonds and other securities 351,082 79,705 -Other non-current assets 1,262 435 - ------------------------------------ $ 1,264,988 $ 395,819 $ 1,136,700 ------------------------------------LiabilitiesCurrent liabilities $ 21,305 $ 41,460 $ 53,152Long-term debt 16,581 - -Provisions 68,823 17,450 53,857Other liabilities 655 - 16,501Deferred income tax liabilities - - 17,095 ------------------------------------ $ 107,364 $ 58,910 $ 140,605 ------------------------------------ DISCONTINUED COBRE OPERATIONS -2011 As at December 31 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)AssetsCash and short-term investments $ 46,109 $ 25,907 $ - $ 1,048,457Other current assets 51,893 1,964 - 366,226Restricted cash 1,565 - - 69,538Property, plant and equipment 66,103 698,423 - 1,772,766Bonds and other securities - - - 430,787Other non-current assets - - - 1,697 ------------------------------------------------- $ 165,670 $ 726,294 $ - $ 3,689,471 -------------------------------------------------LiabilitiesCurrent liabilities $ 16,418 $ 19,348 $ - $ 151,683Long-term debt - - - 16,581Provisions 29,895 - - 170,025Other liabilities - - - 17,156Deferred income tax liabilities 11,256 - - 28,351 ------------------------------------------------- $ 57,569 $ 19,348 $ - $ 383,796 ------------------------------------------------- CORPORATE LAS2010 As at December 31 & OTHER CAYELI CRUCES---------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)AssetsCash and short-term investments $ 51,493 $ 104,324 $ 57,961Other current assets 58,851 57,084 57,708Restricted cash 16,368 - 49,883Property, plant and equipment 754 147,799 911,496Bonds and other securities 248,288 62,803 -Other non-current assets 922 5,571 4,212 ------------------------------------ $ 376,676 $ 377,581 $ 1,081,260 ------------------------------------LiabilitiesCurrent liabilities $ 29,322 $ 38,393 $ 45,718Long-term debt 16,091 - -Provisions 55,707 20,920 54,644Other liabilities 655 - 16,886Deferred income tax liabilities 171 - - ------------------------------------ $ 101,946 $ 59,313 $ 117,248 ------------------------------------ DISCONTINUED COBRE OPERATIONS -2010 As at December 31 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)AssetsCash and short-term investments $ 93,970 $ 8,297 $ - $ 316,045Other current assets 64,088 664 308,826 547,221Restricted cash 1,580 - - 67,831Property, plant and equipment 64,854 555,955 - 1,680,858Bonds and other securities - - - 311,091Other non-current assets - - - 10,705 ------------------------------------------------- $ 224,492 $ 564,916 $ 308,826 $ 2,933,751 -------------------------------------------------LiabilitiesCurrent liabilities $ 27,994 $ 7,688 $ 108,338 $ 257,453Long-term debt - - - 16,091Provisions 25,964 - - 157,235Other liabilities - - - 17,541Deferred income tax liabilities 11,956 - - 12,127 ------------------------------------------------- $ 65,914 $ 7,688 $ 108,338 $ 460,447 -------------------------------------------------INMET MINING CORPORATIONConsolidated statements of changes in equity(unaudited)---------------------------------------------------------------------------- Attributable to Inmet equity holders----------------------------------------------------------------------------(thousands of US Note Share Retained Contributed Share based dollars) reference Capital earnings surplus compensation----------------------------------------------------------------------------Balance as at December 31, 2010 $1,054,927 $1,527,342 $64,028 $6,334Comprehensive income - 337,100 - -Equity settled share-based compensation plans 198 - 601 1,922Dividends - (13,432) - -Issuance of share capital 486,199 - - - ------------------------------------------------Balance as at December 31, 2011 $1,541,324 $1,851,010 $64,629 $8,256 ------------------------------------------------Comprehensive income - 331,211 - -Equity settled share-based compensation plans 449 - 196 13,640Dividends - (13,616) - -Equity funding from non- controlling shareholder - - - -Sale of 20 percent interest in Cobre Panama 12 - 7,592 - - ------------------------------------------------Balance as at December 31, 2012 1,541,773 2,176,197 64,825 21,896 ------------------------------------------------------------------------------------------------------------------------ Attributable to Inmet equity holders------------------------------------------------------------------------ Accumulated other comprehensive Non-(thousands of US income (loss) controlling Total dollars) (note 11) Total interest equity------------------------------------------------------------------------Balance as at December 31, 2010 ($179,327) $2,473,304 $ - $2,473,304Comprehensive income 19,783 356,883 - 356,883Equity settled share-based compensation plans - 2,721 - 2,721Dividends - (13,432) - (13,432)Issuance of share capital - 486,199 - 486,199 -------------------------------------------------------Balance as at December 31, 2011 ($159,544) $3,305,675 $ - $3,305,675 -------------------------------------------------------Comprehensive income 68,358 399,569 4,867 404,436Equity settled share-based compensation plans - 14,285 - 14,285Dividends - (13,616) - (13,616)Equity funding from non- controlling shareholder - - 100,000 100,000Sale of 20 percent interest in Cobre Panama 5,773 13,365 147,659 161,024 -------------------------------------------------------Balance as at December 31, 2012 (85,413) $3,719,278 $252,526 $3,971,804 -------------------------------------------------------INMET MINING CORPORATIONConsolidated statements of earnings(unaudited) Three Months Ended Year Ended December 31 December 31(thousands of US dollars except per share amounts) reference 2012 2011(1) 2012 2011(1)----------------------------------------------------------------------------Gross sales $259,868 $233,394 $1,123,977 $947,911Smelter processing charges and freight (26,155) (27,330) (113,996) (126,569)Cost of sales (excluding depreciation) (91,273) (90,177) (346,627) (316,675) Depreciation (30,079) (26,835) (126,972) (105,269)----------------------------------------------------------------------------Earnings from operations 112,361 89,052 536,382 399,398Corporate development and exploration (8,620) (6,333) (35,616) (28,273)General and administration (14,896) (7,487) (53,522) (33,306)Investment and other income 13 (16,279) (3,883) 24,206 29,748Finance costs 14 (2,632) (2,314) (10,070) (9,182)----------------------------------------------------------------------------Income before taxation 69,934 69,035 461,380 358,385Income tax expense 15 (31,713) (22,491) (131,304) (102,071)----------------------------------------------------------------------------Income from continuing operations 38,221 46,544 330,076 $256,314Income from discontinued operation (net of taxes) - - - 80,786----------------------------------------------------------------------------Net income 38,221 46,544 330,076 $337,100----------------------------------------------------------------------------Net income (loss) attributable to:Inmet equity holders 38,775 46,544 331,211 $337,100Non-controlling interests (554) - (1,135) ----------------------------------------------------------------------------- 38,221 46,544 330,076 $337,100----------------------------------------------------------------------------Earnings per common share 16Income from continuing operations Basic $0.56 $0.67 $4.78 $3.86 Diluted $0.56 $0.67 $4.75 $3.85----------------------------------------------------------------------------Income from discontinued operation Basic $ - - $ - $1.22 Diluted $ - - $ - $1.21----------------------------------------------------------------------------Net income Basic $0.56 $0.67 $4.78 $5.08 Diluted $0.56 $0.67 $4.75 $5.06----------------------------------------------------------------------------(1) refer to note 3 for effect of change in presentation currency to the US Dollar(See accompanying notes)INMET MINING CORPORATIONSegmented statements of earnings(unaudited)2012 For the year ended CORPORATE LAS December 31 & OTHER CAYELI CRUCES-----------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Gross sales $ - $ 358,964 $ 538,981Smelter processing charges and freight - (67,348) (2,374)Cost of sales (excluding depreciation) (17,104) (104,045) (165,320) Depreciation - (24,692) (92,037) --------------------------------------Earnings from operations (17,104) 162,879 279,250Corporate development and exploration (22,490) (1,347) (1,600)General and administration (53,522) - -Investment and other income 25,241 (524) 1,580Finance costs (3,340) (1,155) (4,753)Income tax expense (1,935) (32,923) (72,495) --------------------------------------Net income from continuing operations $ (73,150) $ 126,930 $ 201,982Income from discontinued operation (net of taxes) - - - --------------------------------------Net income (loss) $ (73,150) $ 126,930 $ 201,982 -------------------------------------- DISCONTINUED2012 For the year ended COBRE OPERATIONS December 31 PYHASALMI PANAMA -OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Gross sales $ 226,032 $ - $ - $1,123,977Smelter processing charges and freight (44,274) - - (113,996)Cost of sales (excluding depreciation) (60,158) - - (346,627) Depreciation (10,243) - - (126,972) --------------------------------------------------Earnings from operations 111,357 - - 536,382Corporate development and exploration (4,368) (5,811) - (35,616)General and administration - - - (53,522)Investment and other income (1,727) (364) - 24,206Finance costs (726) (96) - (10,070)Income tax expense (23,951) - - (131,304) --------------------------------------------------Net income from continuing operations $ 80,585 $ (6,271) $ - $ 330,076Income from discontinued operation (net of taxes) - - - - --------------------------------------------------Net income (loss) $ 80,585 $ (6,271) $ - $ 330,076 --------------------------------------------------2011 For the year ended CORPORATE LAS December 31 & OTHER CAYELI CRUCES--------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Gross sales $ - $ 342,458 $ 345,568Smelter processing charges and freight - (69,424) (1,188)Cost of sales (excluding depreciation) (16,190) (97,079) (147,076) Depreciation - (21,337) (74,931) -----------------------------------Earnings from operations (16,190) 154,618 122,373Corporate development and exploration (20,590) (1,612) (435)General and administration (33,306) - -Investment and other income 20,074 7,521 1,686Finance costs (3,720) (570) (4,027)Income tax expense 2,374 (50,947) (22,788) -----------------------------------Net income from continuing operations $ (51,358) $ 109,010 $ 96,809Income from discontinued operation (net of taxes) - - - -----------------------------------Net income (loss) $ (51,358) $ 109,010 $ 96,809 ----------------------------------- DISCONTINUED2011 For the year ended COBRE OPERATIONS December 31 PYHASALMI PANAMA -OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Gross sales $ 259,885 $ - $ - $ 947,911Smelter processing charges and freight (55,957) - - (126,569)Cost of sales (excluding depreciation) (56,330) - - (316,675) Depreciation (9,001) - - (105,269) --------------------------------------------------Earnings from operations 138,597 - - 399,398Corporate development and exploration (3,478) (2,158) - (28,273)General and administration - - - (33,306)Investment and other income 447 20 - 29,748Finance costs (865) - - (9,182)Income tax expense (30,710) - - (102,071) --------------------------------------------------Net income from continuing operations $ 103,991 $ (2,138) $ - $ 256,314Income from discontinued operation (net of taxes) - - 80,786 80,786 --------------------------------------------------Net income (loss) $ 103,991 $ (2,138) $ 80,786 $ 337,100 --------------------------------------------------INMET MINING CORPORATIONSegmented statements of earnings(unaudited)2012 For the three months CORPORATE LAS ended December 31 & OTHER CAYELI CRUCES--------------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Gross sales $ - $ 58,742 $ 136,909Smelter processing charges and freight - (12,856) (861)Cost of sales (excluding depreciation) (9,924) (24,691) (40,320) Depreciation - (4,702) (22,331) -----------------------------------------Earnings from operations (9,924) 16,493 73,397Corporate development and exploration (5,679) (355) 5General and administration (14,896) - -Investment and other income (12,970) 376 (2,238)Finance costs (867) (293) (1,190)Income tax expense (1,346) (3,983) (18,371) -----------------------------------------Net income from continuing operations $ (45,682) $ 12,238 $ 51,603 - - - -----------------------------------------Net income (loss) $ (45,682) $ 12,238 $ 51,603 ----------------------------------------- DISCONTINUED2012 For the three months COBRE OPERATIONS - ended December 31 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Gross sales $ 64,217 $ - $ - $ 259,868Smelter processing charges and freight (12,438) - - (26,155)Cost of sales (excluding depreciation) (16,338) - - (91,273) Depreciation (3,046) - - (30,079) --------------------------------------------------Earnings from operations 32,395 - - 112,361Corporate development and exploration (1,028) (1,573) - (8,620)General and administration - - - (14,896)Investment and other income (953) (494) - (16,279)Finance costs (186) (96) - (2,632)Income tax expense (8,013) - - (31,713) --------------------------------------------------Net income from continuing operations $ 22,215 $ (2,153) $ - $ 38,221 - - - - --------------------------------------------------Net income (loss) $ 22,215 $ (2,153) $ - $ 38,221 --------------------------------------------------2011 For the three months CORPORATE LAS ended December 31 & OTHER CAYELI CRUCES--------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Gross sales $ - $ 77,124 $ 97,731Smelter processing charges and freight - (14,373) (351)Cost of sales (excluding depreciation) (16,190) (22,692) (37,867) Depreciation - (5,391) (19,129) -----------------------------------Earnings from operations (16,190) 34,668 40,384Corporate development and exploration (4,466) (377) (429)General and administration (7,487) - -Investment and other income (5,544) 480 910Finance costs (941) (148) (1,009)Income tax expense 1,662 (9,444) (8,097) -----------------------------------Net income from continuing operations $ (32,966) $ 25,179 $ 31,759Income from discontinued operation (net of taxes) - - - -----------------------------------Net income (loss) $ (32,966) $ 25,179 $ 31,759 ----------------------------------- DISCONTINUED2011 For the three months COBRE OPERATIONS ended December 31 PYHASALMI PANAMA -OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Gross sales $ 58,539 $ - $ - $ 233,394Smelter processing charges and freight (12,606) - - (27,330)Cost of sales (excluding depreciation) (13,428) - - (90,177) Depreciation (2,315) - - (26,835) --------------------------------------------------Earnings from operations 30,190 - - 89,052Corporate development and exploration (1,061) - - (6,333)General and administration - - - (7,487)Investment and other income 156 115 - (3,883)Finance costs (216) - - (2,314)Income tax expense (6,612) - - (22,491) --------------------------------------------------Net income from continuing operations $ 22,457 $ 115 $ - $ 46,544Income from discontinued operation (net of taxes) - - - - --------------------------------------------------Net income (loss) $ 22,457 $ 115 $ - $ 46,544 --------------------------------------------------INMET MINING CORPORATIONConsolidated statements of comprehensive income(unaudited) Three Months Ended Year Ended December 31 December 31 Note(thousands of US dollars) reference 2012 2011(1) 2012 2011(1)----------------------------------------------------------------------------Net income $38,221 $46,544 $330,076 $337,100 ---------------------------------------Other comprehensive income for the period:Continuing operations Changes in fair value of bonds and other securities (1,175) (649) 296 (3,552) Currency translation adjustments 38,266 (107,104) 73,176 4,026Reclassification to net income of losses on bonds and other securities 659 3,440 659 3,440Income tax recovery related to bonds and other securities - other comprehensive income - - - 15 --------------------------------------- 37,750 (104,313) 74,131 3,929 ---------------------------------------Other comprehensive income from discontinued operation (net of taxes) - - - 15,854 ---------------------------------------Comprehensive income $75,971 ($57,769) $404,207 $356,883----------------------------------------------------------------------------(1)refer to note 3 for effect of change in presentation currency to the US Dollar(See accompanying notes)INMET MINING CORPORATIONConsolidated statements of cash flows(unaudited) Three Months Ended Year Ended December 31 December 31(thousands of US Note dollars) reference 2012 2011(2) 2012 2011(2)----------------------------------------------------------------------------Cash provided by (used in) operating activities(1)Net income from continuing operations $38,221 $46,544 $330,076 $256,314Add (deduct) items not affecting cash: Depreciation 30,079 26,835 126,972 105,269 Deferred income taxes 18,431 9,233 72,569 25,504 Accretion expense on provisions and capital leases 2,163 1,855 8,289 7,393 Change in asset retirement obligations at closed sites 9,924 16,190 17,104 16,190 Foreign exchange loss (gain) 4,056 6,031 6,361 (20,384) Stock based compensation 5,158 2,209 17,323 3,473 Other 4,252 7,715 6,155 3,940Settlement of asset retirement obligations (4,969) (4,209) (8,503) (10,509)Net change in non- cash working capital 17 9,536 (41,635) (32,954) 4,786 ----------------------------------------------- 116,851 70,768 543,392 391,976 -----------------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (342,467) (57,100) (785,761) (201,909)Acquisition of bonds and other securities 6 (537,345) (2,121) (2,291,513) (296,014)Maturity of bonds and other securities 581,488 15,613 839,673 66,508Funding received under Cobre Panama option agreement - - - 12,310Sale (purchase) of short-term investments, net (507,636) 80,055 (249,177) (251,632)Other - (3,730) - 255 ----------------------------------------------- (805,960) 32,717 (2,486,778) (670,482) -----------------------------------------------Cash provided by (used in) financing activitiesIssuance of common shares - - - 486,199Long-term debt borrowing, net of transaction costs 9 492,837 - 1,921,868 -Dividends on common shares (6,857) (6,719) (13,616) (13,432)Financial assurance payments (228) (202) (5,454) (2,493)Funding by non- controlling shareholder 40,000 - 100,000 -Sale of 20 percent interest in Cobre Panama 12 - - 160,952 -Other (170) (522) (1,982) (2,767) ----------------------------------------------- 525,582 (7,443) 2,161,768 467,507 -----------------------------------------------Foreign exchange on cash held in foreign currencies 15,445 (22,796) 25,203 (5,204) -----------------------------------------------Cash provided by discontinued operation - - - 297,220 -----------------------------------------------Increase in cash: (148,082) 73,246 243,585 481,017Cash: Beginning of period 1,181,665 716,752 789,998 308,981 ----------------------------------------------- End of period $1,033,583 $789,998 $1,033,583 $789,998Short term investments 507,636 258,459 507,636 258,459 -----------------------------------------------Cash and short- term investments $1,541,219 $1,048,457 $1,541,219 $1,048,457----------------------------------------------------------------------------(See accompanying notes)(1)Supplementary cash flow information: Cash interest paid $70,365 $ - $71,426 $1,118 Cash taxes paid $13,951 $29,038 $65,936 $92,102----------------------------------------------------------------------------(2)refer to note 3 for effect of change in presentation currency to the US DollarINMET MINING CORPORATIONSegmented statements of cash flows(unaudited)For the year ended December CORPORATE 31, 2012 & OTHER CAYELI LAS CRUCES-------------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Cash provided by (used in) operating activitiesBefore net change in non- cash working capital ($40,830) $158,909 $372,140Net change in non-cash working capital 3,131 11,307 (52,337) -------------------------------------- (37,699) 170,216 319,803 --------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (3,732) (17,531) (43,217)Acquisition of bonds and other securities (2,271,677) (19,836) -Maturity of bonds and other securities 839,673 - -Sale (purchase) of short- term investments, net (249,177) - - -------------------------------------- (1,684,913) (37,367) (43,217) --------------------------------------Cash provided by (used in) financing activitiesFunding by non-controlling shareholder - - -Long-term obligations 1,921,868 - -Funding received - Cobre Panama option agreement - - -Other (16,744) - (4,379) -------------------------------------- 1,905,124 - (4,379) --------------------------------------Foreign exchange on cash held in foreign currencies 20,289 (977) 930 --------------------------------------Cash provided by discontinued operation - - - --------------------------------------Intergroup funding (distributions) (35,318) (116,409) (247,033) --------------------------------------Increase (decrease) in cash 167,483 15,463 26,104Cash: Beginning of year 452,968 133,215 131,799 -------------------------------------- End of period 620,451 148,678 157,903Short term investments 507,636 - - --------------------------------------Cash and short-term investments $1,128,087 $148,678 $157,903 -------------------------------------- DISCONTINUEDFor the year ended December COBRE OPERATIONS 31, 2012 PYHASALMI PANAMA -OK TEDI TOTAL--------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Cash provided by (used in) operating activitiesBefore net change in non- cash working capital $92,306 ($6,179) $ - $576,346Net change in non-cash working capital 4,945 - - (32,954) ----------------------------------------------- 97,251 (6,179) - 543,392 -----------------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (8,648) (712,633) - (785,761)Acquisition of bonds and other securities - - - (2,291,513)Maturity of bonds and other securities - - - 839,673Sale (purchase) of short- term investments, net - - - (249,177) ----------------------------------------------- (8,648) (712,633) - (2,486,778) -----------------------------------------------Cash provided by (used in) financing activitiesFunding by non-controlling shareholder - 100,000 - 100,000Long-term obligations - - - 1,921,868Funding received - Cobre Panama option agreement - 160,952 - 160,952Other - 71 - (21,052) ----------------------------------------------- - 261,023 - 2,161,768 -----------------------------------------------Foreign exchange on cash held in foreign currencies 389 4,572 - 25,203 -----------------------------------------------Cash provided by discontinued operation - - - - -----------------------------------------------Intergroup funding (distributions) (113,030) 511,790 - - -----------------------------------------------Increase (decrease) in cash (24,038) 58,573 - 243,585Cash: Beginning of year 46,109 25,907 - 789,998 ----------------------------------------------- End of period 22,071 84,480 - 1,033,583Short term investments - - - 507,636 -----------------------------------------------Cash and short-term investments $22,071 $84,480 $ - $1,541,219 -----------------------------------------------For the year ended December CORPORATE LAS 31, 2011 & OTHER CAYELI CRUCES---------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Cash provided by (used in) operating activitiesBefore net change in non-cash working capital ($55,319) $132,064 $198,630Net change in non-cash working capital (4,615) 19,755 (10,177) --------------------------------- (59,934) 151,819 188,453 ---------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (1,055) (12,708) (51,935)Acquisition of bonds and other securities (280,830) (15,184) -Maturity of bonds and other securities 66,508 - -Funding received under Cobre Panama option agreement - - -Sale (purchase) of short-term investments, net (258,678) - 7,046Other 255 - - --------------------------------- (473,800) (27,892) (44,889) ---------------------------------Cash provided by (used in) financing activities 472,540 - (5,033) ---------------------------------Foreign exchange on cash held in foreign currencies - 642 (3,781) ---------------------------------Cash provided by discontinued operation - - - ---------------------------------Intergroup funding (distributions) 462,669 (95,678) (53,848) ---------------------------------Increase (decrease) in cash 401,475 28,891 80,902Cash: Beginning of year 51,493 104,324 50,897 --------------------------------- End of period 452,968 133,215 131,799Short term investments 258,459 - - ---------------------------------Cash and short-term investments $711,427 $133,215 $131,799 --------------------------------- DISCONTINUEDFor the year ended December COBRE OPERATIONS - 31, 2011 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Cash provided by (used in) operating activitiesBefore net change in non-cash working capital $113,953 ($2,138) $ - $387,190Net change in non-cash working capital (177) - - 4,786 ----------------------------------------------- 113,776 (2,138) - 391,976 -----------------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (7,024) (129,187) - (201,909)Acquisition of bonds and other securities - - - (296,014)Maturity of bonds and other securities - - - 66,508Funding received under Cobre Panama option agreement - 12,310 - 12,310Sale (purchase) of short-term investments, net - - - (251,632)Other - - - 255 ----------------------------------------------- (7,024) (116,877) - (670,482) -----------------------------------------------Cash provided by (used in) financing activities - - - 467,507 -----------------------------------------------Foreign exchange on cash held in foreign currencies (2,608) 543 - (5,204) -----------------------------------------------Cash provided by discontinued operation - - 297,220 297,220 -----------------------------------------------Intergroup funding (distributions) (152,005) 136,082 (297,220) - -----------------------------------------------Increase (decrease) in cash (47,861) 17,610 - 481,017Cash: Beginning of year 93,970 8,297 - 308,981 ----------------------------------------------- End of period 46,109 25,907 - 789,998Short term investments - - - 258,459 -----------------------------------------------Cash and short-term investments $46,109 $25,907 $ - $1,048,457 -----------------------------------------------INMET MINING CORPORATIONSegmented statements of cash flows(unaudited)For the three months ended CORPORATE December 31, 2012 & OTHER CAYELI LAS CRUCES-----------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Cash provided by (used in) operating activitiesBefore net change in non- cash working capital ($28,968) $17,617 $94,801Net change in non-cash working capital 6,409 46,272 (44,973) -------------------------------------- (22,559) 63,889 49,828 --------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (892) (8,343) (18,027)Acquisition of bonds and other securities (537,097) (248) -Maturity of bonds and other securities 581,488 - -Sale (purchase) of short- term investments (507,636) - - -------------------------------------- (464,137) (8,591) (18,027) --------------------------------------Cash provided by (used in) financing activitiesFunding by non-controlling shareholder - - -Long-term obligations 492,837 - -Other (7,021) - (305) -------------------------------------- 485,816 - (305) --------------------------------------Foreign exchange on cash held in foreign currencies 11,224 65 2,984 --------------------------------------Intergroup funding (distributions) (192,066) 1,678 (3,889) --------------------------------------Increase (decrease) in cash (181,722) 57,041 30,591Cash: Beginning of year 802,173 91,637 127,312 -------------------------------------- End of period 620,451 148,678 157,903Short term investments 507,636 - - --------------------------------------Cash and short-term investments $1,128,087 $148,678 $157,903 -------------------------------------- DISCONTINUEDFor the three months ended COBRE OPERATIONS - December 31, 2012 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Cash provided by (used in) operating activitiesBefore net change in non- cash working capital $25,926 ($2,061) $ - $107,315Net change in non-cash working capital 1,828 - - 9,536 -------------------------------------------------- 27,754 (2,061) - 116,851 --------------------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (2,618) (312,587) - (342,467)Acquisition of bonds and other securities - - - (537,345)Maturity of bonds and other securities - - - 581,488Sale (purchase) of short- term investments - - - (507,636) -------------------------------------------------- (2,618) (312,587) - (805,960) --------------------------------------------------Cash provided by (used in) financing activitiesFunding by non-controlling shareholder - 40,000 - 40,000Long-term obligations - - 492,837Other - 71 - (7,255) -------------------------------------------------- - 40,071 - 525,582 --------------------------------------------------Foreign exchange on cash held in foreign currencies 1,172 - - 15,445 --------------------------------------------------Intergroup funding (distributions) (34,890) 229,167 - - --------------------------------------------------Increase (decrease) in cash (8,582) (45,410) - (148,082)Cash: Beginning of year 30,653 129,890 - 1,181,665 -------------------------------------------------- End of period 22,071 84,480 - 1,033,583Short term investments - - - 507,636 --------------------------------------------------Cash and short-term investments $22,071 $84,480 $ - $1,541,219 --------------------------------------------------For the three months CORPORATE LAS ended December 31, 2011 & OTHER CAYELI CRUCES-------------------------------------------------------------(thousands of US dollars) (Turkey) (Spain)Cash provided by (used in) operating activitiesBefore net change in non- cash working capital ($6,338) $33,654 $60,044Net change in non-cash working capital 1,397 (25,475) (15,959) ----------------------------------- (4,941) 8,179 44,085 -----------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (345) (3,437) (9,666)Acquisition of bonds and other securities (1,807) (314) -Maturity of bonds and other securities 15,613 - -Sale (purchase) of short- term investments 80,056 - (1)Other (2,790) (940) - ----------------------------------- 90,727 (4,691) (9,667) -----------------------------------Cash provided by (used in) financing activities (6,836) - (607) -----------------------------------Foreign exchange on cash held in foreign currencies - (5,422) (8,667) -----------------------------------Cash provided by discontinued operation (297,220) - - -----------------------------------Intergroup funding (distributions) 346,804 (54) (14,675) -----------------------------------Increase (decrease) in cash 128,534 (1,988) 10,469Cash: Beginning of year 324,433 135,203 121,331 ----------------------------------- End of period 452,967 133,215 131,800Short term investments 258,459 - - -----------------------------------Cash and short-term investments $711,426 $133,215 $131,800 ----------------------------------- DISCONTINUEDFor the three months COBRE OPERATIONS - ended December 31, 2011 PYHASALMI PANAMA OK TEDI TOTAL---------------------------------------------------------------------------- (Papua New(thousands of US dollars) (Finland) (Panama) Guinea)Cash provided by (used in) operating activitiesBefore net change in non- cash working capital $24,928 $115 $ - $112,403Net change in non-cash working capital (1,598) - - (41,635) --------------------------------------------------- 23,330 115 - 70,768 ---------------------------------------------------Cash provided by (used in) investing activitiesPurchase of property, plant and equipment (1,914) (41,738) - (57,100)Acquisition of bonds and other securities - - - (2,121)Maturity of bonds and other securities - - - 15,613Sale (purchase) of short- term investments - - - 80,055Other - - - (3,730) --------------------------------------------------- (1,914) (41,738) - 32,717 ---------------------------------------------------Cash provided by (used in) financing activities - - - (7,443) ---------------------------------------------------Foreign exchange on cash held in foreign currencies (7,224) (1,483) - (22,796) ---------------------------------------------------Cash provided by discontinued operation - - 297,220 - ---------------------------------------------------Intergroup funding (distributions) (75,914) 41,059 (297,220) - ---------------------------------------------------Increase (decrease) in cash (61,722) (2,047) - 73,246Cash: Beginning of year 107,831 27,954 - 716,752 --------------------------------------------------- End of period 46,109 25,907 - 789,998Short term investments - - - 258,459 ---------------------------------------------------Cash and short-term investments $46,109 $25,907 $ - $1,048,457 ---------------------------------------------------
