We’re growing and profitable, and are in a very strong financial position.
Long-term value
Financial strength
Our financial objective is to ensure we have the cash and debt capacity to support our strategy to grow responsibly as a base metal mining company, providing superior returns to shareholders.
Our strategy is to ensure that we have sufficient liquidity in the form of cash and committed credit facilities to finance our operating requirements and the growth projects we have identified. We manage our debt levels by ensuring that, even at the low point in the metal price cycle, our operations can provide adequate debt coverage.
Key financial measures
We use the following key financial measures to assess our financial condition and liquidity:
|
as at
September 30, 2011 |
as at
December 31, 2010 |
| Current Ratio |
7.6 to 1 |
3.4 to 1 |
| Gross debt to total equity |
1% |
1% |
| Net working captial balance (millions) |
$1,239 |
$626 |
| Liquidity balance including cash and long-term bonds (millions) |
$1,738 |
$699 |
Highlights
The table below shows our financial and operating highlights for the nine months ended September 30, 2011.
| Key Financial Data |
three months ended
September 30 |
nine months ended September 30 |
|
2011 |
2010 |
change |
2011 |
2010 |
change |
FINANCIAL HIGHLIGHTS
(thousands, except per share amounts) |
| Sales |
|
|
|
|
| Gross sales |
$261,757 |
$225,960 |
+16% |
$737,986 |
$548,287 |
+35% |
|
| Net income |
| Net income from continuing operations |
$101,205 |
$67,986 |
+49% |
$216,660 |
$168,851 |
+28% |
| Net income from continuing operations per share |
$1.46 |
$1.04 |
+40% |
$3.31 |
$3.00 |
+10% |
| Net income from discontinued operations |
- |
$33,569 |
-100% |
$83,439 |
$76,762 |
+9% |
| Net income from discontinued operations per share |
- |
$0.60 |
-100% |
$1.27 |
$1.37 |
-7% |
| Net income attributable to Inmet shareholders |
$101,205 |
$91,678 |
+10% |
$300,099 |
$244,944 |
+23% |
| Net income per share |
$1.46 |
$1.64 |
-11% |
$4.58 |
$4.37 |
+5% |
|
| Cash flow |
| Cash flow provided by operating activities |
$120,650 |
$79,585 |
+52% |
$331,757 |
$164,403 |
+102% |
| Cash flow provided by operation activities per share (1) |
$1.74 |
$1.42 |
+23% |
$5.07 |
$2.93 |
+73% |
|
| Capital spending (2) |
$57,034 |
$44,327 |
+29% |
$149,565 |
$68,757 |
+118% |
|
| OPERATING HIGHLIGHTS |
| Production (3) |
| Copper (tonnes) |
21,700 |
17,100 |
+27% |
58,600 |
47,900 |
+22% |
| Zinc (tonnes) |
23,000 |
20,800 |
+11% |
62,500 |
60,100 |
+4% |
| Gold (ounces) |
- |
- |
- |
- |
37,900 |
-100% |
| Pyrite (tonnes) |
210,100 |
62,000 |
+239% |
594,300 |
397,200 |
+50% |
|
| Cash costs |
| Copper (US $ per pound) (4) |
$0.69 |
$0.77 |
-10% |
$0.88 |
$0.59 |
+49% |
(1) Cash flow provided by operating activities divided by average shares outstanding for the period.
(2) The nine months ended September 30, 2011 includes capital spending of $90 million at Cobre Panama and $44 million at Las Cruces. The nine months ended September 30, 2010 includes capital spending of $65 million at Cobre Panama and $52 million at Las Cruces, reduced by positive cash flow from pre-operating costs net of revenues and working capital changes at Las Cruces of $60 million.
(3) Inmet’s share. 2010 production does not include our share of Ok Tedi.
(4) Copper cash cost per pound is a non-GAAP financial measure – see Supplementary financial on pages 29 go 31 of the third quarter report for three and nine months end September 30, 2011 . Copper cash costs this quarter and year to September were higher because Las Cruces is ramping up to full production. We did
not include Las Cruces’ results in cash costs in the first half of 2010 because it had not yet reached commercial production. |
The table below shows our financial and operating highlights for each of the last three years.
Financial Highlights
|
2010 |
2009 |
2008 |
change (2009
to 2010) |
| (millions, except per share amounts) |
| Sales |
| Gross sales |
$1,100 |
$984 |
$945 |
+ 12% |
|
| Net income |
| Net income |
$359 |
$269 |
$217 |
+ 33% |
| Net income per share |
$6.37 |
$5.14 |
$4.49 |
+ 24% |
|
| Cash flow |
| Cash flow provided by operating activities |
$409 |
$323 |
$325 |
+ 27% |
| Cash flow provided by operation activities per share (1) |
$726 |
$6.17 |
$6.72 |
- 46% |
|
| Financial Condition |
Dec 31
2010 |
Dec 31
2009 |
Dec 31
2008 |
Change (2009
to 2010) |
| Current ratio |
3.4 to 1 |
4.2 to 1 |
2.4 to 1 |
|
| Gross debt to total equity |
1% |
1% |
19% |
|
| Net working capital balance (millions) |
$611 |
$609 |
$475 |
|
| Cash balance including long-term bonds (millions) |
$699 |
$634 |
$573 |
|
| Shareholders' equity (millions) |
$2,758 |
$2,238 |
$1,868 |
|
|
| Operating Highlights |
2010 |
2009 |
2008 |
Change
(2009 to 2010) |
| Production (2) |
| Copper (tonnes) |
94,300 |
83,600 |
80,500 |
|
| Zinc (tonnes) |
81,400 |
78,000 |
75,400 |
|
| Gold (ounces) |
125,400 |
228,400 |
244,100 |
|
|
| Cash Costs (3) |
| Copper (US $ per pound) |
$0.49 |
$0.44 |
$0.52 |
|
| Gold (US $ per ounce) |
- |
$182 |
$417 |
|
(1) Cash flow provided by operating activities divided by average shares outstanding for the period.
(2) Inmet’s share.
(3) Cash cost per pound of copper and cash cost per ounce of gold are non-GAAP measures – see Supplementary financial information on pages 33 to 35 Inmet's fourth quarter report for the three months and year ended December 31, 2010. |
|
|