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Five-Year Plan Updated to Reflect Royalty and Loan Repayment
Capital spending in the 2013 Budget and Five-Year Plan compares to the PEA as follows:
May 2012 Five-Year PlanYear PEA Capital Capital Spending--------------------------------------pre-2013 $744.9 M $679.3 M (includes Escobal purchase less depr)2013 $109.4 M $133.2 M2014 $24.6 M $32.1 M2015 $19.5 M $21.9 M2016 $18.1 M $22.3 M2017 $19.2 M $23.1 M
Projected spending differences are largely due to timing of Escobal project expenditures and payments. The project remains on time and on budget. Capital spending projected for 2014 through 2017 is a combination of sustaining capital and the 4,500 tpd expansion project.
Assuming $25 per silver ounce; a full draw on the $50 million credit facility; payment of interest expenses; and the new 5% NSR mining royalty, the revised key performance indicators for the five-year plan are as follows:
Five-Year Plan - Key Business Indicators (1,2,3)----------------------------------------------------------------------------Key Business Indicator 2013 2014 2015 2016 2017----------------------------------------------------------------------------Silver ounces produced (millions) na 20.5 20.1 20.5 20.0----------------------------------------------------------------------------Total cash cost per ounce(4,6) na $ 4.93 $ 5.12 $ 5.34 $ 5.43----------------------------------------------------------------------------Total cost per ounce(6) na $ 11.73 $ 11.16 $ 11.86 $ 11.56----------------------------------------------------------------------------All-in sustaining cost per ounce(5,6) na $ 9.40 $ 9.28 $ 9.27 $ 9.49----------------------------------------------------------------------------Revenues ($millions) na $ 515 $ 491 $ 503 $ 490----------------------------------------------------------------------------Earnings per share na $ 1.67 $ 1.61 $ 1.60 $ 1.56----------------------------------------------------------------------------Cash flow per share na $ 1.84 $ 2.09 $ 2.15 $ 2.11----------------------------------------------------------------------------Free cash flow per share(5) na $ 1.62 $ 1.94 $ 2.00 $ 1.96----------------------------------------------------------------------------
Notes:
1. The Five-Year Plan is derived from indicated and inferred resources described in the May 2012 PEA. See Cautionary Note, Forward-Looking Statements and Financial Outlook below.2. Assumes the following metals prices: $25/oz Ag, $1300/oz Au, $0.95/lb Pb, $.90/lb Zn.3. Projections of production and costs are expected to vary +/- 10% in any given year.4. Total cash cost per ounce includes by-product credits.5. All-in sustaining cost per ounce is to proposed World Gold Council standard.6. See Non-GAAP Financial Measures below.
AGM Voting Results
All members of the board of directors were re-elected at its annual meeting of shareholders held yesterday. Votes were cast as follows.
---------------------------------------------------------------------------- Director Name Votes For Votes Withheld---------------------------------------------------------------------------- Number % Number %----------------------------------------------------------------------------A. Dan Rovig 123,164,131 99.99% 12,173 0.01%----------------------------------------------------------------------------C. Kevin McArthur 123,161,837 99.99% 11,467 0.01%----------------------------------------------------------------------------Lorne B. Anderson 122,584,997 99.52% 588,307 0.48%----------------------------------------------------------------------------Paul B. Sweeney 122,583,347 99.52% 589,957 0.48%----------------------------------------------------------------------------James S. Voorhees 123,161,231 99.99% 12,073 0.01%----------------------------------------------------------------------------Kenneth F. Williamson 122,585,367 99.52% 587,937 0.48%----------------------------------------------------------------------------Tanya M. Jakusconek 123,161,001 99.99% 12,303 0.01%----------------------------------------------------------------------------John P. Bell 123,161,001 99.99% 12,303 0.01%----------------------------------------------------------------------------
