Business and Financial Review
In 2017, we paid down all of our short-term debt, as well as our secured credit facility, through a combination of an improved metal price environment and our consistently disciplined approach to managing finances. This has allowed us to switch our focus from right-sizing our balance sheet to growing our company. We received the Final Record of Decision from the US Forest Service in 2017 and look forward to receiving the Section 404 Water Permit from the US Army Corps of Engineers and finalizing the Mine Plan of Operations shortly. We can then move forward with the development of Rosemont, and expect to finance the initial phases with cash generated by our operations. At the same time, we have committed $50 million to exploration activities, both near our mines and greenfield properties, which will allow us to identify new deposits and enhance the value and mine life of existing projects.
Key Accomplishments
- Maintained effective cost discipline while delivering growth, as consolidated metals production met or exceeded 2017 guidance ranges
- Leveraged an increasingly favourable metals price environment to drive debt reduction and generate strong cash flow
- Improved total available liquidity to $778 million, which includes $356 million in cash
- Reduced net debt position by $462 million during full-year 2017
- Advanced permitting activities at Rosemont, receiving the Final Record of Decision from the US Forest Service in June 2017
- Expanded our pipeline of growth opportunities by committing $50 million to exploration near existing processing infrastructure in Manitoba and Peru, as well as greenfield exploration properties in Chile and British Columbia
2017 Summary
| For the years ended December 31 | 2017 | 2016 |
|---|---|---|
| Production (contained metal in concentrate)* | ||
| Copper (000 tonnes) | 159.2 | 174.4 |
| Zinc (000 tonnes) | 135.2 | 111.0 |
| Gold (000 ounces) | 108.6 | 114.3 |
| Silver (000 ounces) | 3,487.3 | 3,756.0 |
* Metal reported in concentrate is prior to refining losses or deductions associated with smelter contract terms.
| Financial condition (in $000s) | Dec. 31, 2017 | Dec. 31, 2016 |
|---|---|---|
| Cash and cash equivalents | $356,499 | $146, 864 |
| Working capital | 308,675 | 121,539 |
| Total assets | 4,648,729 | 4,456,556 |
| Total long-term debt | 979,575 | 1,232,164 |
| Equity | 2,144,255 | 1,763,212 |
| Financial performance (in $000s, except per share and cash cost amounts) |
Dec. 31, 2017 | Dec. 31, 2016 |
|---|---|---|
| Revenue | $1,362,553 | $1,128,678 |
| Profit before tax | 198,728 | 5,605 |
| Basic and diluted earnings (loss) per share1 | 0.67 | (0.15) |
| Profit (loss) | 163,899 | (35,193) |
| Operating cash flows before change in non-cash working capital | 530,561 | 387,868 |
| Production | ||
| Contained metal in concentrate2 | ||
| Copper (tonnes) | 159,192 | 174,491 |
| Gold (ounces) | 108,593 | 114,296 |
| Silver (ounces) | 3,487,258 | 3,755,896 |
| Zinc (tonnes) | 135,156 | 110,582 |
| Metal sold | ||
| Payable in metal in concentrate2 | ||
| Copper (tonnes) | 148,655 | 171,451 |
| Gold (ounces) | 109,770 | 95,527 |
| Silver (ounces) | 3,060,269 | 3,181,759 |
| Refined zinc (tonnes) | 116,377 | 103,453 |
- Attributable to owners of the Company.
- Metal reported in concentrate is prior to deductions associated with smelter contract terms.