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Q1 2013 total sales revenues were 24% higher than Q1 2012. This includes the contribution from Kevitsa of $39.8 million and $29.8 million from Las Cruces, Cayeli and Pyhasalmi in the 10-day post acquisition period. Excluding these results, sales revenues increased by 14% from Q1 2012 from a combination of higher sales volumes at all operations and contribution from Kevitsa, offset by lower realized prices. Revenue for the Corporate and other segment in Q1 2012 benefited from a one-off sale of excess sulphur.
The Company's sales revenues are recognized at provisional prices when title passes to the customer. Subsequent adjustments for final pricing are materially offset by derivative adjustments and shown on a net basis in cost of sales (see "Hedging Program" for further discussion).
------------------------------------Copper selling price (per lb) Q1 2013 Q4 2012 Q1 2012-------------------------------------------------------------------------Average LME cash price 3.60 3.59 3.77Realized copper price 3.48 3.46 3.67Treatment/refining charges ("TC/RC") and freight charges (0.25) (0.23) (0.34)-------------------------------------------------------------------------Net realized copper price 3.23 3.23 3.33-------------------------------------------------------------------------The LME copper price averaged $3.60 per lb for the quarter, a decrease of $0.17 per lb from the average for Q1 2012. Copper prices fell to a five-month low in mid March 2013 with news of the $13.0 billion aid package for Cyprus and an increase in LME inventories.
-------------------------------------Nickel selling price (per lb) Q1 2013 Q4 2012 Q1 2012--------------------------------------------------------------------------Average LME cash price 7.85 7.70 8.91Realized nickel price per payable pound 7.80 7.74 8.85TC/RC charges (0.33) (0.35) (1.04)--------------------------------------------------------------------------Net realized nickel price per payable pound 7.47 7.39 7.81--------------------------------------------------------------------------
The LME nickel price averaged $7.85 per lb for the quarter, a decrease of $1.06 per lb from the average for Q1 2012. Nickel prices remained range bound through January trading between $7.70 and $7.95 per lb for most of the month before rallying at the end of the month reaching a quarter peak of $8.42 per lb on February 5, 2013. Late February saw prices falling to reach a quarter low of $7.45 per lb on March 1, 2013 with prices at the end of the quarter closing at $7.50 per lb.
SUMMARY FINANCIAL RESULTS
------------------------------------ Q1 2013 Q4 2012 Q1 2012-------------------------------------------------------------------------Gross profit Kansanshi 246.9 238.0 236.4 Guelb Moghrein 36.3 47.5 24.4 Ravensthorpe 11.3 2.8 10.9 Kevitsa 15.6 6.4 - Las Cruces 6.1 - - Cayeli (1.7) - - Pyhasalmi (1.0) - - Other (3.3) 0.3 (1.4)-------------------------------------------------------------------------Total gross profit 310.2 295.0 270.3-------------------------------------------------------------------------Exploration (9.7) (13.4) (12.9)General and administrative (25.7) (20.4) (17.4)Acquisition transaction costs (29.5) - -Other income (expense) (2.3) (5.0) 0.3Net finance income (costs) (4.4) 1.0 (0.8)Settlement of RDC claims and sale of assets - - 1,217.9Income taxes (99.3) (50.5) (96.4)-------------------------------------------------------------------------Net earnings for the period 139.3 206.7 1,361.0-------------------------------------------------------------------------Net earnings for the period attributable to: Non-controlling interests 26.9 20.0 24.1 Shareholders of the Company 112.4 186.7 1,336.9-------------------------------------------------------------------------Comparative earnings 153.8 186.7 119.0-------------------------------------------------------------------------Earnings per share Basic $0.23 $0.39 $2.82 Diluted $0.23 $0.39 $2.81-------------------------------------------------------------------------Comparative earnings per share $0.32 $0.39 $0.25-------------------------------------------------------------------------
