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Operating cash flow per share
The following table presents Hudbay's calculation of operating cash flow per share for the three months ended March 31, 2013:
---------------------------------------------------------------------------- Three Months Ended --------------------------- Mar. 31 Mar. 31($000s except share and per share amounts) 2013 2012----------------------------------------------------------------------------Operating cash flow before change in non-cash working capital 12,261 42,247Weighted average shares outstanding 172,012,192 171,912,598----------------------------------------------------------------------------Operating cash flow per share 0.07 0.25----------------------------------------------------------------------------
Cash cost per pound of copper sold
Cash cost per pound of copper sold is a non-IFRS measure that management uses as a key performance indicator to assess the performance of the company's operations. Hudbay's calculation takes a by-product costing approach, under which the company designates copper as its primary metal of production and from which the company subtracts the net revenues realized from the sale of other metals mined with copper. As there is significant variation in calculation methodologies in practice, Hudbay's cash cost may not be directly comparable with the cash cost of other companies.
Cost to copper concentrate includes all direct mining, milling, and concentrating costs incurred in the production of copper concentrate at Hudbay's mines and mills in addition to general and administrative expenses directly related to those operations. Downstream costs include freight, distribution, and treatment charges related to copper concentrate plus copper refining costs. Net by-product credits include revenue from the sale of zinc, gold, silver, and other by-products less the production costs of zinc and refining costs associated with gold and silver. Realization of deferred revenue under the precious metals stream agreement with Silver Wheaton is not included in net by-product credits.
---------------------------------------------------------------------------- Three Months Ended Mar. 31 Mar. 31 2013 2012Cash cost per pound of copper sold$/lbMining, milling, concentrating 1.66 1.77On-site administration and general expenses 0.24 0.18Cost to copper concentrate 1.90 1.95Treatment and refining 0.20 0.17Freight and distribution 0.34 0.31Other 0.01 0.03Downstream costs 0.55 0.51Net by-product credits (0.67) (1.28)Cash cost per pound of copper sold 1.78 1.18Reconciliation to Income Statement($000s)Cost of sales - mine operating costs 81,021 120,063Treatment and refining charges 4,951 6,970Pre-production revenue 4,677By-product revenues (69,186) (97,259)Less: change in deferred revenue 9,443 30,906 29,774Less: indirect costs(1)Share based payment 258 334Adjustments related to zinc inventory write-downs (reversals) - 1,058Demolition and rehabilitation - 40Subtotal - cash costs 30,648 28,342Copper sales (000s lbs) 17,242 24,072Cash cost per pound of copper sold ($/lb) 1.78 1.18----------------------------------------------------------------------------(1)Indirect costs in cost of sales - mine operating costs
