Financial Highlights – Continuing Operations
| (in thousands, except per share amounts) | Quarter Ended June 30, 2013 |
Quarter Ended June 30, 2012(2) |
| Adjusted net earnings(1) | $6,122 | ($921) |
| Adjusted net earnings per share, basic(1) | $0.02 | ($0.00) |
| Net (loss) / earnings | ($103,491) | $6,640 |
| Net (loss) / earnings per share, basic | ($0.42) | $0.03 |
| Adjusted operating cash flow(1) | $18,691 | $987 |
| (in thousands, except per share amounts) | Six Months Ended June 30, 2013 |
Six Months Ended June 30, 2012(2) |
| Adjusted net earnings(1) | $17,719 | $4,578 |
| Adjusted net earnings per share, basic(1) | $0.07 | $0.02 |
| Net (loss) / earnings | ($85,217) | ($6,958) |
| Net (loss) / earnings per share, basic | ($0.34) | ($0.02) |
| Adjusted operating cash flow(1) | $38,813 | $6,865 |
| (1) | See the tables at the end of this press release for a reconciliation of adjusted net earnings and adjusted operating cash flow and refer to the discussion of Non-GAAP measures below. Total cash costs per gold ounce have been presented prior to net realizable value adjustments on the Young-Davidson low-grade long-term stockpile inventory and the El Chanate heap leach ore in process inventory. The Company has restated adjusted net earnings for 2012. |
| (2) | Certain comparative information has been restated as a result of the adoption of IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine, which was applied prospectively to production stripping costs incurred on or after January 1, 2012. For further details, refer to the Critical Accounting Estimates, Policies and Changes section on page 21 in the Company’s Management’s Discussion & Analysis or note 3(a) to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2013. |
| (3) | The Young-Davidson open pit mine declared commercial production on September 1, 2012, and is therefore excluded from consolidated cash costs prior to this date. Pre-production ounces produced are excluded from consolidated ounces produced as these ounces are credited against capitalized project costs when sold. |
Adjusted Net Earnings Reconciliation
| (in thousands, except per share metrics) | Quarter Ended | Quarter Ended |
| June 30, 2013 | June 30, 2012 | |
| Net (loss) / earnings from continuing operations | ($103,491) | $6,640 |
| Adjustments: | ||
| Impairment charges | 98,688 | – |
| Net realizable value adjustments on inventory | 12,245 | – |
| Foreign exchange loss on translation of tax basis recorded in deferred income tax expense | 11,852 | 5,688 |
| Unrealized foreign exchange gain | (8,741) | (4,813) |
| Gain on option component of convertible notes | (4,106) | (9,618) |
| Unrealized gain on derivatives | 123 | (896) |
| Unrealized loss on contingent consideration | 4,060 | – |
| Other | (4,508) | 2,078 |
| Adjusted net earnings from continuing operations | $6,122 | ($921) |
| Adjusted net earnings from continuing operations, per share | $0.02 | ($0.00) |
| Net earnings from discontinued operations | – | $15,043 |
| Adjustments: | ||
| Unrealized foreign exchange gain | – | (2,636) |
| Net realizable value adjustments on inventory | – | 14,366 |
| Loss on disposition of Australian Operations | – | 1,736 |
| Other | – | (791) |
| Adjusted net earnings from discontinued operations | – | $27,718 |
| Adjusted net earnings from discontinued operations, per share | – | $0.10 |
| Adjusted net earnings | $6,122 | $26,797 |
| Adjusted net earnings, per share | $0.02 | $0.09 |
| (in thousands, except per share metrics) | Six Months Ended | Six Months Ended |
| June 30, 2013 | June 30, 2012 | |
| Net loss from continuing operations | ($85,217) | ($6,958) |
| Adjustments: | ||
| Impairment charges | 98,688 | – |
| Net realizable value adjustments on inventory | 12,245 | – |
| Foreign exchange loss / (gain) on translation of tax basis recorded in deferred income tax expense | 12,553 | 1,097 |
| Unrealized foreign exchange (gain) / loss | (9,677) | 5,009 |
| (Gain) / loss on option component of convertible notes | (10,975) | 4,184 |
| Unrealized gain on derivatives | (2,071) | (1,193) |
| Unrealized loss on contingent consideration | 6,849 | – |
| Other | (4,675) | 2,439 |
| Adjusted net earnings from continuing operations | $17,719 | $4,578 |
| Adjusted net earnings from continuing operations, per share | $0.07 | $0.02 |
| Net earnings from discontinued operations | – | $29,856 |
| Adjustments: | ||
| Unrealized foreign exchange loss | – | 7,281 |
| Net realizable value adjustments on inventory | – | 14,366 |
| Loss on disposition of Australian Operations | – | 1,736 |
| Impairment of Australian Operations | – | 22,857 |
| Other | – | (791) |
| Adjusted net earnings from discontinued operations | – | $75,305 |
| Adjusted net earnings from discontinued operations, per share | – | $0.27 |
| Adjusted net earnings | $17,719 | $79,883 |
| Adjusted net earnings, per share | $0.07 | $0.28 |
Adjusted Operating Cash Flow Reconciliation
| (in thousands, except per share metrics) | Quarter Ended | Quarter Ended |
| June 30, 2013 | June 30, 2012 | |
| Operating cash flow from continuing operations | $13,875 | ($4,235) |
| Add back: Non-cash change in operating working capital | 4,816 | 5,222 |
| Adjusted operating cash flow from continuing operations | $18,691 | $987 |
| Adjusted operating cash flow from continuing operations, per share | $0.08 | $0.00 |
| (in thousands, except per share metrics) | Six Months Ended | Six Months Ended |
| June 30, 2013 | June 30, 2012 | |
| Operating cash flow from continuing operations | $26,974 | $6,235 |
| Add back: Non-cash change in operating working capital | 11,839 | 630 |
| Adjusted operating cash flow from continuing operations | $38,813 | $6,865 |
| Adjusted operating cash flow from continuing operations, per share | $0.15 | $0.02 |
Non-GAAP Measures