Financials

Consolidated Balance Sheets

As at December 31		1999		1998
		(Thousands)
Assets
Current assets
	Cash	$45,469		$36,466
	Accounts receivable [note 3]	138,691		124,247
	Inventories [note 4]	356,828		344,451
	Supplies and prepaid expenses	47,695		51,467
		588,683		556,631
Property, plant and equipment [note 5]		2,135,843		1,989,011
Long-term receivables, investments and other [note 6]		175,736		210,160
Inventories [note 4]		63,881		182,805
Total assets		$2,964,143		$2,938,607
Liabilities and Shareholders' Equity
Current liabilities
	Short-term debt [note 7]	$          -		$32,651
	Accounts payable and accrued liabilities	105,873		116,335
	Dividends payable	7,160		7,207
	Current portion of long-term debt [note 8]	30,241		28,631
	Current portion of other liabilities [note 10]	5,568		14,406
	Deferred income taxes [note 16]	32,549		34,123
		181,391		233,353
Long-term debt [note 8]		328,963		540,116
Provision for reclamation [note 9]		103,411		105,995
Other liabilities [note 10]		15,618		19,052
Deferred income taxes [note 16]		412,417		136,817
		1,041,800		1,035,333
Shareholders' equity
	Preferred securities [note 11]	176,248		186,985
	Share capital [note 12]	683,787		687,658
	Contributed surplus [note 12]	490,771		496,745
	Retained earnings	552,154		509,326
	Cumulative translation account [note 13]	19,383		22,560
		1,922,343		1,903,274
Total liabilities and shareholders' equity		$2,964,143		$2,938,607
Commitments and contingencies [notes 8, 9, 19, 25]
See accompanying notes to consolidated financial statements. Approved by the board of directors

Consolidated Statements of Earnings

For the year ended December 31		1999		1998		1997
		(Thousands)
Revenue from
Products and services		$741,592		$718,949		$642,945
Expenses
Products and services sold		428,904		400,632		316,108
Depreciation, depletion and reclamation		136,863		126,669		122,676
Administration		35,720		39,516		27,213
Exploration		22,633		30,609		32,023
Research and development		2,331		2,671		1,893
Interest, net [note 14]		3,420		(1,609)		(7,962)
Writedown of mineral properties [note 5]		45,523		15,964		-
Gain on sale of property interests [note 23]		(13,129)		-		-
		662,265		614,452		491,951
Earnings from operations [note 27]		79,327		104,497		150,994
Other expenses [note 15]		2,028		11,579		3,958
Earnings before income taxes		77,299		92,918		147,036
Income tax expense (recovery) [note 16]		(2,738)		47,274		65,057
Net earnings		80,037		45,644		81,979
Preferred securities charges, net of tax [note 11]		8,835		1,980		-
Net earnings attributable to common shares [note 27]		$71,202		$43,664		$81,979
Net earnings per common share [note 27]		$1.24		$0.76		$1.51

Consolidated Statements of Retained Earnings

For the year ended December 31		1999		1998		1997
		(Thousands)
Retained earnings at beginning of year		$509,326		$494,608		$440,206
Net earnings		80,037		45,644		81,979
Dividends on common shares		(28,374)		(28,946)		(27,577)
Preferred securities charges, net of tax [note 11]		(8,835)		(1,980)		-
Retained earnings at end of year		$552,154		$509,326		$494,608
See accompanying notes to consolidated financial statements.

Consolidated Statements of Cash Flows

For the year ended December 31		1999		1998		1997
		(Thousands)
Operating activities
Net earnings		$80,037		$45,644		$81,979
Items not requiring (providing) cash:
Depreciation, depletion, and reclamation		136,863		126,669		122,676
Provision for deferred taxes (recovery) [note 16]		(12,004)		38,148		58,847
Writedown of mineral properties [note 5]		45,523		15,964		-
Gain on sale of property interests [note 23]		(13,129)		-		-
Deferred revenue recognized		(12,793)		(15,610)		(8,384)
Other non-cash items		3,670		11,579		3,958
Other operating items [note 17]		21,245		14,430		(96,970)
Cash provided by operations [note 27]		249,412		236,824		162,106
Investing activities
Additions to property, plant and equipment		(211,551)		(158,623)		(126,143)
Change in long-term receivables, investments and other		5,058		10,524		(49,042)
Proceeds on sale of property interests [note 23]		239,177		-		-
Acquisition of net business assets [note 24]		-		(548,128)		(155,975)
Proceeds on sale of property, plant and equipment		3,896		2,427		6,315
Cash provided by (used in) investing		36,580		(693,800)		(324,845)
Financing activities
Increase in debt		98,289		407,906		150,412
Repayment of debt		(324,184)		(155,461)		(63,699)
Restricted cash		3,825		(15,769)		-
Issue of shares, net of issue costs		2,544		2,866		198,188
Shares repurchased		(12,394)		-		-
Issue of preferred securities, net of issue costs		-		176,736		-
Preferred securities charges		(16,361)		(3,638)		-
Dividends		(28,708)		(28,920)		(27,043)
Cash provided by (used in) financing		(276,989)		383,720		257,858
Increase (decrease) in cash during the year		9,003		(73,256)		95,119
Cash at beginning of year		36,466		109,722		14,603
Cash at end of year		$45,469		$36,466		$109,722
Supplemental cash flow disclosure
Interest paid		$32,968		$32,496		$29,945
Income taxes paid		$14,599		$5,148		$6,425
See accompanying notes to consolidated financial statements.