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MANAGEMENT’S DISCUSSION AND ANALYSIS
DRIVING GROWTH FROM WITHIN
Liquidity and Capital Resources
Full-Year 2014 Liquidity and Capital Resources
The capital of the Company consists of equity and an available credit facility, net of cash. The Board of Directors has not
established a quantitative return on capital criteria for management. The Company manages the capital structure and
makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets.
The Company’s cash and cash equivalents as at December 31, 2014, totaled $42.9 million (December 31, 2013: $31.7
million), and short term investments totaled $34.4 million (December 31, 2013: $17.4 million).
Working capital for the year ended December 31, 2014 increased $16.0 million, to $82.4 million (December 31, 2013:
$66.4 million). This reflects the increases in cash and cash equivalents of $11.2 million, short term investments of
$17.0 million, accounts receivable and other assets of $3.5 million, and a decrease in the current portion of other
liabilities of $0.3 million. The increase in working capital was offset by a decrease in inventories of $0.6 million, and
increases in trade and other payables of $5.6 million, provisions of $0.1 million, and income taxes payable of $9.7
million.
During the year ended December 31, 2014, cash and cash equivalents increased $11.5 million (2013: decreased $26.4
million). The increase was due to net cash provided by operating activities of $60.2 million, net cash used in investing
activities of $57.0 million, and net cash provided by financing activities of $8.2 million. Exchange rate changes had a
negative impact of $0.3 million on cash and cash equivalents. Compared with 2013, the Company’s expenditures on
mineral properties, plant and equipment decreased $21.6 million, net purchases of short-term investments increased
$5.9 million, cash provided by operating activities increased $15.2 million, and exchange rate changes decreased $0.3
million.
During the year ended December 31, 2014, cash generated by operating activities before changes in non-cash working
capital items, income taxes paid, and interest income paid and received was $59.8 million (2013: $40.9 million). Net
cash provided by operating activities amounted to $60.2 million (2013: $45.0 million). This includes income taxes paid
and interest income paid and received of $3.1 million (2013: $3.8 million) and changes in non-cash working capital
items of $0.4 million (2013: $4.0 million).
Cash used by the Company in investing activities for the year ended December 31, 2014, totaled $57.0 million (2013:
$71.7 million) and comprised of the following:
• $18.0 million (2013: $12.1 million) in net purchases of short-term investments,
• $38.9 million (2013: $60.5 million) in expenditures on mineral properties, plant and equipment, and
• $0.1 million in net advances (2013: net receipts $0.9 million) on deposits on long-term assets.
Investing activities included $38.9 million of expenditures on mineral properties, plant and equipment that comprised of
the following $20.8 million for plant and equipment, $1.4 million for infill drilling, $9.9 million for mine development, and
$6.8 million for brownfields exploration.
During the year ended December 31, 2014, cash provided by financing activities totaled $8.2 million (2013: provided
$0.3 million) and comprised the repayment of finance lease obligations of $0.3 million (2013: $0.4 million) and net
proceeds on the issuance of common shares of $8.5 million (2013: $0.7 million).
Fourth Quarter 2014 Liquidity and Capital Resources
During the three months ended December 31, 2014, cash and cash equivalents increased $2.4 million (Q4 2013:
increased $0.7 million). The increase was due to net cash provided by operating activities of $9.3 million, net cash used
in investing activities of $11.7 million, and net cash provided by financing activities of $4.8 million. Exchange rate changes
had no impact on cash and cash equivalents. Compared with Q4 2013, the Company’s expenditures on mineral
properties, plant and equipment decreased $1.7 million, net purchase of short-term investments decreased $4.2 million,
cash provided by operating activities decreased $7.5 million, and exchange rate changes decreased by $0.3 million.
During the three months ended December 31, 2014, cash generated by operating activities before changes in non-cash
working capital items, income taxes paid, and interest income paid and received was $10.0 million (Q4 2013: $11.2
million). Net cash provided by operating activities amounted to $9.3 million (Q4 2013: $16.8 million). This includes
income taxes paid and interest income paid and received of $0.8 million (Q4 2013: $1.3 million) and changes in non-
cash working capital items of $0.7 million (Q4 2013: $5.6 million).
Cash used by the Company in investing activities for the three months ended December 31, 2014, totaled $11.7 million
(Q4 2013: $16.0 million) and comprised of the following:
• $3.2 million (Q4 2013: $7.4 million) in net purchases of short-term investments,
• $7.5 million (Q4 2013: $9.2 million) in expenditures on mineral properties, plant and equipment, and
• $1.0 million in net advances (Q4 2013: net receipts $0.6 million) on deposits on long-term assets.
