Consolidated Balance Sheets
| As at December 31 | 1998 | 1997 | |||
| (Thousands) | |||||
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| Assets | |||||
| Current assets | |||||
| Cash | $36,466 | $109,722 | |||
| Accounts receivable [note 3] | 124,247 | 111,584 | |||
| Inventories [note 4] | 344,451 | 298,708 | |||
| Supplies and prepaid expenses | 51,467 | 37,785 | |||
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| 556,631 | 557,799 | ||||
| Property, plant and equipment [note 5] | 1,989,011 | 1,342,728 | |||
| Long-term receivables, investments and other [note 6] | 210,160 | 188,696 | |||
| Inventories [note 4] | 182,805 | 181,479 | |||
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| Total assets | $2,938,607 | $2,270,702 | |||
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| Liabilities and Shareholders' Equity | |||||
| Current liabilities | |||||
| Short-term debt [note 7] | $32,651 | $143,650 | |||
| Accounts payable and accrued liabilities | 116,335 | 93,831 | |||
| Dividends payable | 7,207 | 7,181 | |||
| Current portion of long-term debt [note 8] | 28,631 | 14,016 | |||
| Current portion of other liabilities [note 10] | 14,406 | 26,553 | |||
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| 199,230 | 285,231 | ||||
| Long-term debt [note 8] | 540,116 | 129,065 | |||
| Provision for reclamation [note 9] | 105,995 | 87,976 | |||
| Other liabilities [note 10] | 19,052 | 19,147 | |||
| Deferred income taxes | 170,940 | 57,050 | |||
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| 1,035,333 | 578,469 | ||||
| Shareholders' equity | |||||
| Preferred securities [note 11] | 186,985 | - | |||
| Share capital [note 12] | 687,658 | 684,792 | |||
| Contributed surplus | 496,745 | 496,745 | |||
| Retained earnings | 509,326 | 494,608 | |||
| Cumulative translation account [note 13] | 22,560 | 16,088 | |||
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| 1,903,274 | 1,692,233 | ||||
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| Total liabilities and shareholders' equity | $2,938,607 | $2,270,702 | |||
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Commitments and contingencies [notes 9, 19, 24, 28] |
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See accompanying notes to consolidated financial statements. Approved by the board of directors |
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Consolidated Statements of Earnings
| For the year ended December 31 | 1998 | 1997 | 1996 | ||||||
| (Thousands) | |||||||||
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| Revenue from | |||||||||
| Products and services | $718,949 | $642,945 | $590,861 | ||||||
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| Expenses | |||||||||
| Products and services sold | 400,632 | 316,108 | 298,205 | ||||||
| Depreciation, depletion and reclamation | 126,669 | 122,676 | 94,974 | ||||||
| Administration | 39,516 | 27,213 | 23,255 | ||||||
| Exploration | 30,609 | 32,023 | 29,223 | ||||||
| Research and development | 2,671 | 1,893 | 3,334 | ||||||
| Interest, net [note 14] | (1,609) | (7,962) | (3,396) | ||||||
| Writedown of mineral properties [note 5] | 15,964 | - | - | ||||||
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| 614,452 | 491,951 | 445,595 | |||||||
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| Earnings from operations [note 26] | 104,497 | 150,994 | 145,266 | ||||||
| Other expenses [note 15] | 11,579 | 3,958 | 2,422 | ||||||
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| Earnings before income taxes | 92,918 | 147,036 | 142,844 | ||||||
| Income tax expense [note 16] | 47,274 | 65,057 | 5,311 | ||||||
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| Net earnings | 45,644 | 81,979 | 137,533 | ||||||
| Preferred securities charges [note 11] | 1,980 | - | - | ||||||
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| Net earnings attributable to common shares [note 26] | $43,664 | $81,979 | $137,533 | ||||||
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| Net earnings per common share [note 26] | $0.76 | $1.51 | $2.60 | ||||||
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Consolidated Statements of Retained Earnings
| For the year ended December 31 | 1998 | 1997 | 1996 | ||||||
| (Thousands) | |||||||||
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| Retained earnings at beginning of year | $494,608 | $440,206 | $329,131 | ||||||
| Net earnings | 45,644 | 81,979 | 137,533 | ||||||
| Dividends on common shares | (28,946) | (27,577) | (26,458) | ||||||
| Preferred securities charges [note 11] | (1,980) | - | - | ||||||
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| Retained earnings at end of year | $509,326 | $494,608 | $440,206 | ||||||
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See accompanying notes to consolidated financial statements. |
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Consolidated Statements of Cash Flow
| For the year ended December 31 | 1998 | 1997 | 1996 | ||||||
| (Thousands) | |||||||||
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| Operating activities | |||||||||
| Net earnings | $45,644 | $81,979 | $137,533 | ||||||
| Items not requiring (providing) cash: | |||||||||
| Depreciation, depletion, and reclamation | 126,669 | 122,676 | 94,974 | ||||||
| Provision for deferred taxes [note 16] | 38,148 | 58,847 | - | ||||||
| Writedown of mineral properties [note 5] | 15,964 | - | - | ||||||
| Other non-cash items [note 15] | 11,579 | 3,958 | 2,422 | ||||||
| Deferred revenue recognized | (15,610) | (8,384) | (1,964) | ||||||
| Other operating items [note 17] | 12,772 | (96,970) | (55,062) | ||||||
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| Cash provided by operations [note 26] | 235,166 | 162,106 | 177,903 | ||||||
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Investing activities |
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| Additions to property, plant and equipment | (158,623) | (126,143) | (168,141) | ||||||
| Change in long-term receivables, investments and other | 10,524 | (49,042) | (27,730) | ||||||
| Repayment of additional subordinated loan | - | - | 31,591 | ||||||
| Acquisition of net business assets [note 23] | (548,128) | (155,975) | - | ||||||
| Proceeds on sale of property, plant and equipment | 2,427 | 6,315 | 2,227 | ||||||
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| Cash used in investing | (693,800) | (324,845) | (162,053) | ||||||
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Financing activities |
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| Increase in debt | 407,906 | 150,412 | 88,415 | ||||||
| Repayment of debt | (155,461) | (63,699) | (84,859) | ||||||
| Restricted cash | (15,769) | - | - | ||||||
| Issue of shares, net of issue costs | 2,866 | 198,188 | 6,948 | ||||||
| Issue of preferred securities, net of issue costs | 176,736 | - | - | ||||||
| Preferred securities charges | (1,980) | - | - | ||||||
| Dividends | (28,920) | (27,043) | (26,393) | ||||||
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| Cash provided by (used in) financing | 385,378 | 257,858 | (15,889) | ||||||
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| Increase (decrease) in cash during the year | (73,256) | 95,119 | (39) | ||||||
| Cash at beginning of year | 109,722 | 14,603 | 14,642 | ||||||
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| Cash at end of year | $36,466 | $109,722 | $14,603 | ||||||
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See accompanying notes to consolidated financial statements. |
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