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In Q1 2013 the Company generated operating cash flows before changes in working capital of $324.7 million compared to $286.8 million in the same prior year period primarily due to higher non-cash expenses in Q1 2013. Changes in working capital during Q1 2013 resulted in an increase of cash of $117.1 million as the Company sought to reduce concentrate inventory on hand at year end and reduce amounts owing by offtakers. This amount was offset by $25.4 million in taxes that the Company paid during the quarter.
Capital expenditure on the Company's development projects totalled $338.0 million for the quarter. Capital expenditure comprised primarily;
-- $129.3 million at Kansanshi for the oxide circuit expansions, smelter project and mine pit development costs-- $151.9 million at Sentinel, including deposits, for site development and long-lead plant and mine equipment
Cash flows from investment activities also include the cash paid for the acquisition of Inmet, net of the cash acquired.
Proceeds from settlement of RDC claims and sale of assets represents the net cash proceeds received during Q1 2012. The $500.0 million promissory note is payable by ENRC on March 2, 2015.
Cash flows from financing activities in Q1 2013 of $2,078.8 million consist primarily of the drawdown of a new $2,500 million facility entered into to finance the acquisition of Inmet. The facility is repayable by March 26, 2014 and has been included as a current liability on the balance sheet of the Company at March 31, 2013. Cash flows from financing activities in Q4 2012 comprise primarily of the net proceeds from the $350.0 million senior notes issue which was completed on October 10, 2012.
As at March 31, 2013, the Company had the following contractual obligations outstanding:
-------------------------------------------------------------------------- Carrying Contractual less than Value Cashflows 1 year 1-3 years 3-5 years Thereafter--------------------------------------------------------------------------Debt(1) 4,704.9 5,113.4 4,610.9 51.0 50.7 400.8Trade and other payables 796.6 796.6 796.6 - - -Current taxes payable 32.9 32.9 32.9 - - -Deferred payments 4.2 4.2 4.2 - - -Finance leases 26.7 38.1 3.8 7.6 7.6 19.1Commitments 2,387.3 2,387.3 1,696.0 691.3 - -Restoration provisions 500.3 662.4 15.1 17.4 9.3 620.6-------------------------------------------------------------------------- Total 8,452.9 9,034.9 7,159.5 767.3 67.6 1,040.5--------------------------------------------------------------------------(1) Included in this debt and in the amount payable within one year are theInmet senior notes issued in 2012 of $2,222.6. The acquisition of Inmet bythe Company triggered the change of control clause in the notes' indenturewhich requires an offer to repurchase the notes. Subsequent to the end ofthe quarter, a mandatory offer, that expires May 20, 2013, has been issuedto purchase these notes. The notes that remain outstanding after the expiryof the offer will be reclassified as a non-current liability repayable afterfive years.
Total commitments of $2,387.3 million comprise primarily of capital expenditure for property, plant and equipment related to the development of Cobre Panama, Sentinel, upgrades at Kansanshi, the smelter construction and other projects.
