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Our financial results
---------------------------------------------------------------------------- three months ended December 31(thousands, except per share amounts) 2012 2011 change----------------------------------------------------------------------------EARNINGS FROM OPERATIONS(1)Cayeli $16,493 $34,668 -52%Las Cruces 73,397 40,384 +82%Pyhasalmi 32,395 30,190 +7%Other (9,924) (16,190) -39%---------------------------------------------------------------------------- 112,361 89,052 +26%----------------------------------------------------------------------------DEVELOPMENT AND EXPLORATIONCorporate development and exploration (8,620) (6,333) +36%----------------------------------------------------------------------------CORPORATE COSTSGeneral and administration (14,896) (7,487) +99%Investment and other income (16,279) (3,883) +319%Finance costs (2,632) (2,314) +14%Income and capital taxes (31,713) (22,491) +41%---------------------------------------------------------------------------- (65,520) (36,175) +81%----------------------------------------------------------------------------Net income from continuing operations 38,221 46,544 -18%Income from discontinued operation (net of taxes) - - -Non-controlling interest 554 - +100%----------------------------------------------------------------------------Net income attributable to Inmet shareholders $38,775 $46,544 -17%----------------------------------------------------------------------------Income from continuing operations per common share $0.56 $0.67 -16%----------------------------------------------------------------------------Diluted income from continuing operations per common share $0.56 $0.67 -16%----------------------------------------------------------------------------Basic net income per common share $0.56 $0.67 -16%----------------------------------------------------------------------------Diluted net income per common share $0.56 $0.67 -16%----------------------------------------------------------------------------Weighted average shares outstanding 69,366 69,332 --------------------------------------------------------------------------------------------------------------------------------------------------------- year ended December 31(thousands, except per share amounts) 2012 2011 change----------------------------------------------------------------------------EARNINGS FROM OPERATIONS(1)Cayeli $162,879 $154,618 +5%Las Cruces 279,250 122,373 +128%Pyhasalmi 111,357 138,597 -20%Other (17,104) (16,190) +6%---------------------------------------------------------------------------- 536,382 399,398 +34%----------------------------------------------------------------------------DEVELOPMENT AND EXPLORATIONCorporate development and exploration (35,616) (28,273) +26%----------------------------------------------------------------------------CORPORATE COSTSGeneral and administration (53,522) (33,306) +61%Investment and other income 24,206 29,748 -19%Finance costs (10,070) (9,182) +10%Income and capital taxes (131,304) (102,071) +29%---------------------------------------------------------------------------- (170,690) (114,811) +49%----------------------------------------------------------------------------Net income from continuing operations 330,076 256,314 +29%Income from discontinued operation (net of taxes) - 80,786 -100%Non-controlling interest 1,135 - +100%----------------------------------------------------------------------------Net income attributable to Inmet shareholders $331,211 $337,100 -2%----------------------------------------------------------------------------Income from continuing operations per common share $4.78 $3.86 +24%----------------------------------------------------------------------------Diluted income from continuing operations per common share $4.75 $3.85 +23%----------------------------------------------------------------------------Basic net income per common share $4.78 $5.08 -6%----------------------------------------------------------------------------Diluted net income per common share $4.75 $5.06 -6%----------------------------------------------------------------------------Weighted average shares outstanding 69,362 66,432 +4%----------------------------------------------------------------------------(1) Gross sales less smelter processing charges and freight, cost of sales including depreciation and provisions for mine reclamation at closed properties.Key changes in 2012---------------------------------------------------------------------------- three months ended year ended(millions) December 31 December 31 see page----------------------------------------------------------------------------EARNINGS FROM OPERATIONSMarket FactorsHigher (lower) copper prices $1 ($35) 8Lower zinc prices - (7) 8Lower other metal prices (6) (9) 8Lower smelter processing charges - 4 10Foreign exchange - decreased operating costs 1 5 11Operational FactorsHigher sales volume at Las Cruces, net of production costs 27 196 20Higher (lower) sales volumes at our other mines (2) 11 8Higher operating costs at our other mines (5) (9) 11Higher depreciation due to Las Cruces production (3) (17) 12Lower (higher) charge for mine rehabilitation at closed properties 6 (1) 11Other 4 (1)----------------------------------------------------------------------------Increase in operating earnings, compared to 2011 23 137Higher taxes from higher income (9) (29) 14Higher corporate development, exploration and administrative costs (10) (28) 13Foreign exchange changes (11) (4) 13Other (1) (2)----------------------------------------------------------------------------Higher (lower) net income from continuing operations compared to 2011 (8) 74Lower income from discontinued operation - Ok Tedi - (81) 14Non-controlling interest - 1----------------------------------------------------------------------------Lower net income attributable to Inmet shareholders compared to 2011 ($8) ($6)----------------------------------------------------------------------------
