43
MANAGEMENT’S DISCUSSION AND ANALYSIS
DRIVING GROWTH FROM WITHIN
Expressed in $ millions
Years ended December 31,
2014
2013
Corporate
Bateas Cuzcatlan
Total
Corporate
Bateas Cuzcatlan
Total
General and administrative expenses $ 10.8 $ 3.4 $ 3.4 $ 17.6 $ 10.3 $ 3.0 $ 3.4 $ 16.7
Foreign exchange
(0.7)
0.4
0.2
(0.1)
(0.7)
0.3
0.1 (0.3)
Share-based payments
6.7
–
–
6.7
3.2
–
–
3.2
Workers' participation
–
0.1
0.9
1.0
–
0.2
–
0.2
$ 16.8 $ 3.9 $ 4.5 $ 25.2 $ 12.8 $ 3.5 $ 3.5 $ 19.8
Exploration and evaluation costs
for the year ended December 31, 2014, decreased to $nil (2013: $0.4 million) as a
result of the Company’s reduction in its greenfields exploration program.
Expressed in $ millions
Years ended December 31,
2014
2013
Salaries, wages, and benefits
$ –
$ 0.3
Direct costs
–
0.1
$ –
$ 0.4
Loss on disposal of mineral properties, plant and equipment
for the year ended December 31, 2014, amounted to $0.1
million (2013: $0.1 million) and pertained to the disposal of equipment.
Restructuring and severance costs
for the year ended December 31, 2014, amounted to $1.1 million (2013: $0.5 million)
and pertained to the Company’s cost-reduction program, and include all salaries and post-employment costs.
Write-off of mineral properties, plant and equipment
for the year ended December 31, 2014, amounted to $nil (2013:
$0.6 million, pertaining to the San Luisito concessions).
Impairment of mineral properties, plant and equipment
for the year ended December 31, 2014, amounted to $nil (2013:
$30.0 million, related to the impairment of Caylloma Mine as a result of declining silver prices).
Impairment of inventories
for the year ended December 31, 2014, amounted to $0.1 million (2013:$0.1 million) and
pertained to the write-down of materials in inventory to their net realizable value.
Interest income
for the year ended December 31, 2014, amounted to $0.3 million (2013: $0.6 million).
Interest expense
for the year ended December 31, 2014, amounted to $1.2 million (2013: $0.9 million).
Income taxes
for the year ended December 31, 2014, increased to $17.3 million (2013: $9.1 million) mainly due to the
increase in current income taxes in Mexico even after accelerating the depletion of Mexico mining rights along with no
further impact of the Mexico special mining royalty on deferred income tax.
In 2013, income taxes included a $9.6 million tax impact related to the impairment charge of Caylloma and to the
deferred income provision of $7.7 million resulting from the Mexico special mining royalty, and a reduction of the tax
base.
The following table summarizes the details of income taxes by region and component:
Expressed in $ millions
Years ended December 31,
2014
2013
Income Taxes
Peru
Meixco
Total
Peru
Mexico
Total
Current income tax
$ 3.6
$ 9.9
$ 13.5
$ 4.9
$ –
$ 4.9
Deferred income tax
1.6
2.2
3.8
(7.5)
11.7
4.2
$ 5.2
$ 12.1
$ 17.3
$ (2.6)
$ 11.7
$ 9.1
