47
MANAGEMENT’S DISCUSSION AND ANALYSIS
DRIVING GROWTH FROM WITHIN
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
Mexico
Total
Peru
Mexico
Total
Current income tax
$ 0.2
$ 1.9
$ 2.1
$ 1.6
$ –
$ 1.6
Deferred income tax
0.8
0.5
1.3
(4.7)
9.5
4.8
$ 1.0
$ 2.4
$ 3.4
$ (3.1)
$ 9.5
$ 6.4
Non-GAAP Financial Measures
Cash cost per payable ounce of silver and cash cost per tonne of processed ore (non-GAAP financial
measure)
Cash cost per payable ounce of silver and cash cost per tonne of processed ore are key performance measures that
management uses to monitor performance. Management believes that certain investors also use these non-GAAP
financial measures to evaluate the Company’s performance. Cash costs are an industry-standard method of comparing
certain costs on a per unit basis; however, they do not have a standardized meaning or method of calculation, even
though the descriptions of such measures may be similar. These performance measures have no meaning under
International Financial Reporting Standards (“IFRS”), and, therefore, amounts presented may not be comparable with
similar data presented by other mining companies.
The following tables present a reconciliation of cash costs per tonne of processed ore and cash costs per payable ounce
of silver to the cost of sales in the consolidated financial statements for the three months and the years ended December
31, 2014 and 2013:
Consolidated Mine Cash Cost
Expressed in $‘000’s
YTD
YTD
Q4 2014
Q4 2014
Q4 2013
Q4 2013
Cost of sales
1
27,771
113,753
26,004
95,619
Add / (Subtract):
Change in concentrate inventory
235
(901)
562
(472)
Depletion and depreciation in
concentrate inventory
(70)
211
(132)
194
Government royalties and mining taxes
(298)
(1,388)
(218)
(749)
Workers participation
(519)
(4,291)
(353)
(1,078)
Depletion and depreciation
(5,419)
(22,643)
(5,327)
(19,114)
Cash cost (A)
21,700
84,741
20,536
74,400
Cash cost (A)
21,700
84,741
20,536
74,400
Add / (Subtract):
By-product credits from gold, lead, and zinc
(15,356)
(63,198)
(13,181)
(50,105)
Refining charges
1,899
7,920
1,809
6,794
Cash cost applicable per payable ounce (B)
8,243
29,463
9,164
31,089
Payable ounces of silver production (C)
1,549,464
6,287,593
1,396,295
4,420,241
Cash cost per ounce of payable silver
($/oz) (B/C)
5.32
4.69
6.56
7.03
1
Includes depletion, depreciation, distribution, community relations, government royalties and mining taxes, and workers participation
