Teck Resources Limited
(Registrant)
|
|||
Date: July 23, 2015
|
By:
|
/s/ Karen L. Dunfee | |
Karen L. Dunfee | |||
Corporate Secretary | |||
For Immediate Release
15-23-TR
|
Date:
|
July 23, 2015
|
— | Profit attributable to shareholders was $63 million and EBITDA was $596 million in the second quarter. |
— | Gross profit before depreciation and amortization was $676 million in the second quarter compared with $636 million in the second quarter of 2014. |
— | Cash flow from operations, before working capital changes, was $531 million in the second quarter of 2015 compared with $520 million a year ago. |
— | We have reached agreements with the majority of our customers for the third quarter of 2015, based on a quarterly benchmark of US$93 per tonne for the highest quality product and we expect total sales in the third quarter, including spot sales, to be at least 6.0 million tonnes of steelmaking coal. |
— | All critical milestones are being achieved on the Fort Hills oil sands project. The partners are focused on opportunities to manage capital cost in the current economic environment. |
— | A falling Canadian dollar, lower oil prices and our cost reduction program have contributed to reduce our U.S. dollar unit costs for our products with copper and coal unit costs falling by US$0.15 per pound and US$17 per tonne, respectively, compared to last year. |
Reference:
|
Greg Waller, VP Investor Relations & Strategic Analysis
|
604.699.4014
|
Marcia Smith, SVP Sustainability and External Affairs
|
604.699.4616
|
— | The Red Dog concentrate shipping season commenced on June 28, with the first vessel sailing. We expect sales of 170,000 tonnes of contained zinc metal in the third quarter and 200,000 tonnes in the fourth quarter reflecting the normal seasonal pattern of Red Dog sales. |
— | Our liquidity remains strong at over $6.5 billion inclusive of $1.5 billion cash at July 22, 2015 and US$4.2 billion of undrawn, committed credit facilities. Our cash balance is in line with expectations and consistent with our goal of finishing the year with at least $1.0 billion in cash. |
— | On May 28, in response to steelmaking coal market conditions we announced rotating shutdowns totaling three weeks in the third quarter at our steelmaking coal mines. These shutdowns have commenced and further steps to reduce production may be taken in the fourth quarter unless the supply-demand balance in the market improves. |
— | On June 25, unexpected ground movement was observed in the area of the SX-EW plant at our Quebrada Blanca Operations in Chile leading to a temporary suspension of cathode production. Partial production has since resumed. Production in the second half of 2015 is expected to be reduced by 5,000 to 10,000 tonnes of copper cathode. |
— | As planned, Duck Pond ceased operations on June 30 after exhausting all of its remaining ore resources. |
— | On July 9, we increased our cash position by US$162 million as a result of entering into a gold offtake agreement and terminating a separate royalty agreement with subsidiaries of Royal Gold, Inc. related to our Carmen de Andacollo Operation. |
— | We were the top-ranked mining company and fourth-ranked company overall named to the Best 50 Corporate Citizens in Canada ranking by media and investment research company Corporate Knights and were also named one of the Top 50 Socially Responsible Corporations in Canada by Sustainalytics, a global responsible investment research firm. |
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Profit attributable to shareholders as reported
|
$
|
63
|
$
|
80
|
$
|
131
|
$
|
149
|
||||||||
Add (deduct):
|
||||||||||||||||
Asset sales and provisions
|
2
|
-
|
(23
|
)
|
8
|
|||||||||||
Foreign exchange (gains) losses
|
-
|
(12
|
)
|
18
|
(3
|
)
|
||||||||||
Derivative losses
|
-
|
4
|
3
|
2
|
||||||||||||
Tax items
|
14
|
-
|
14
|
21
|
||||||||||||
Adjusted profit
|
$
|
79
|
$
|
72
|
$
|
143
|
$
|
177
|
||||||||
Adjusted earnings per share
|
$
|
0.14
|
$
|
0.13
|
$
|
0.25
|
$
|
0.31
|
1)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
FINANCIAL OVERVIEW
|
Three months
ended June 30,
|
Six months
ended June 30,
|
||||||||||||||
($ in millions, except per share data)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Revenue and profit
|
||||||||||||||||
Revenue
|
$
|
1,999
|
$
|
2,009
|
$
|
4,023
|
$
|
4,093
|
||||||||
Gross profit before depreciation and amortization (1)
|
$
|
676
|
$
|
636
|
$
|
1,361
|
$
|
1,370
|
||||||||
Gross profit
|
$
|
311
|
$
|
298
|
$
|
659
|
$
|
705
|
||||||||
EBITDA (1)
|
$
|
596
|
$
|
558
|
$
|
1,142
|
$
|
1,115
|
||||||||
Profit attributable to shareholders
|
$
|
63
|
$
|
80
|
$
|
131
|
$
|
149
|
||||||||
Cash flow
|
||||||||||||||||
Cash flow from operations
|
$
|
332
|
$
|
436
|
$
|
704
|
$
|
981
|
||||||||
Property, plant and equipment expenditures
|
$
|
329
|
$
|
335
|
$
|
700
|
$
|
735
|
||||||||
Capitalized stripping costs
|
$
|
175
|
$
|
199
|
$
|
341
|
$
|
403
|
||||||||
Investments
|
$
|
11
|
$
|
18
|
$
|
54
|
$
|
26
|
||||||||
Balance Sheet
|
||||||||||||||||
Cash balances
|
$
|
1,327
|
$
|
2,131
|
||||||||||||
Total assets
|
$
|
37,248
|
$
|
36,263
|
||||||||||||
Debt, including current portion
|
$
|
9,072
|
$
|
7,748
|
||||||||||||
Per share amounts
|
||||||||||||||||
Profit attributable to shareholders
|
$
|
0.11
|
$
|
0.14
|
$
|
0.23
|
$
|
0.26
|
||||||||
Dividends declared
|
$
|
0.15
|
$
|
0.45
|
$
|
0.15
|
$
|
0.45
|
||||||||
PRODUCTION, SALES AND PRICES
|
||||||||||||||||
Production (000’s tonnes, except coal)
|
||||||||||||||||
Coal (millions tonnes)
|
6.6
|
6.4
|
13.4
|
13.1
|
||||||||||||
Copper (2)
|
93
|
87
|
174
|
172
|
||||||||||||
Zinc in concentrate (3)
|
179
|
157
|
345
|
320
|
||||||||||||
Zinc - refined
|
75
|
72
|
150
|
134
|
||||||||||||
Sales (000’s tonnes, except coal)
|
||||||||||||||||
Coal (millions tonnes)
|
6.5
|
6.8
|
13.3
|
13.0
|
||||||||||||
Copper (2)
|
97
|
87
|
168
|
170
|
||||||||||||
Zinc in concentrate (3)
|
105
|
111
|
257
|
259
|
||||||||||||
Zinc - refined
|
78
|
72
|
151
|
134
|
||||||||||||
Average prices and exchange rates
|
||||||||||||||||
Coal (realized US$/tonne)
|
$
|
95
|
$
|
111
|
$
|
101
|
$
|
121
|
||||||||
Coal (realized CAD$/tonne)
|
$
|
116
|
$
|
122
|
$
|
122
|
$
|
132
|
||||||||
Copper (LME cash - US$/pound)
|
$
|
2.74
|
$
|
3.08
|
$
|
2.69
|
$
|
3.14
|
||||||||
Zinc (LME cash - US$/ pound)
|
$
|
0.99
|
$
|
0.94
|
$
|
0.97
|
$
|
0.93
|
||||||||
Average exchange rate (CAD$ per US$1.00)
|
$
|
1.23
|
$
|
1.09
|
$
|
1.24
|
$
|
1.10
|
||||||||
Gross profit margins before depreciation (1)
|
||||||||||||||||
Coal
|
28
|
%
|
24
|
%
|
31
|
%
|
29
|
%
|
||||||||
Copper
|
45
|
%
|
45
|
%
|
43
|
%
|
47
|
%
|
||||||||
Zinc
|
27
|
%
|
27
|
%
|
28
|
%
|
24
|
%
|
1)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
2)
|
We include 100% of production and sales from our Highland Valley Copper, Quebrada Blanca and Carmen de Andacollo mines in our production and sales volumes, even though we own 97.5%, 76.5% and 90%, respectively, of these operations, because we fully consolidate their results in our financial statements. We include 22.5% of production and sales from Antamina, representing our proportionate equity interest in Antamina.
|
3)
|
Includes 6,000 tonnes of pre-commercial production and sales volumes for Pend Oreille in the first quarter.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Revenue
|
||||||||||||||||
Coal
|
$
|
764
|
$
|
833
|
$
|
1,629
|
$
|
1,713
|
||||||||
Copper
|
704
|
650
|
1,227
|
1,302
|
||||||||||||
Zinc
|
530
|
526
|
1,165
|
1,077
|
||||||||||||
Energy
|
1
|
-
|
2
|
1
|
||||||||||||
Total
|
$
|
1,999
|
$
|
2,009
|
$
|
4,023
|
$
|
4,093
|
||||||||
Gross profit, before depreciation and amortization (1)
|
||||||||||||||||
Coal
|
$
|
215
|
$
|
203
|
$
|
510
|
$
|
497
|
||||||||
Copper
|
317
|
293
|
527
|
611
|
||||||||||||
Zinc
|
143
|
140
|
322
|
261
|
||||||||||||
Energy
|
1
|
-
|
2
|
1
|
||||||||||||
Total
|
$
|
676
|
$
|
636
|
$
|
1,361
|
$
|
1,370
|
||||||||
Gross profit
|
||||||||||||||||
Coal
|
$
|
35
|
$
|
26
|
$
|
144
|
$
|
142
|
||||||||
Copper
|
171
|
160
|
268
|
360
|
||||||||||||
Zinc
|
105
|
112
|
248
|
203
|
||||||||||||
Energy
|
-
|
-
|
(1
|
)
|
-
|
|||||||||||
Total
|
$
|
311
|
$
|
298
|
$
|
659
|
$
|
705
|
1)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Coal price (realized US$/tonne)
|
$
|
95
|
$
|
111
|
$
|
101
|
$
|
121
|
||||||||
Coal price (realized CAD$/tonne)
|
$
|
116
|
$
|
122
|
$
|
122
|
$
|
132
|
||||||||
Production (million tonnes)
|
6.6
|
6.4
|
13.4
|
13.1
|
||||||||||||
Sales (million tonnes)
|
6.5
|
6.8
|
13.3
|
13.0
|
||||||||||||
Gross profit, before depreciation and amortization
|
$
|
215
|
$
|
203
|
$
|
510
|
$
|
497
|
||||||||
Gross profit
|
$
|
35
|
$
|
26
|
$
|
144
|
$
|
142
|
||||||||
Property, plant and equipment expenditures
|
$
|
23
|
$
|
51
|
$
|
48
|
$
|
130
|
($ in millions)
|
Three months
ended June 30,
|
|||
As reported in second quarter of 2014
|
$
|
203
|
||
Increase (decrease):
|
||||
Coal price realized:
|
||||
US$ price
|
(116
|
)
|
||
Foreign exchange
|
79
|
|||
Sales volume
|
(8
|
)
|
||
Operating costs
|
58
|
|||
Coal inventory write-down
|
(1
|
)
|
||
Net increase
|
12
|
|||
As reported in current quarter
|
$
|
215
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(amounts reported in CAD$ per tonne)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Site cost of sales
|
$
|
45
|
$
|
53
|
$
|
47
|
$
|
52
|
||||||||
Transportation costs
|
36
|
37
|
36
|
38
|
||||||||||||
Inventory write-down
|
2
|
2
|
1
|
3
|
||||||||||||
Unit costs (1) (2)
|
$
|
83
|
$
|
92
|
$
|
84
|
$
|
93
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(amounts reported in USD$ per tonne)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Site cost of sales
|
$
|
36
|
$
|
49
|
$
|
38
|
$
|
47
|
||||||||
Transportation costs
|
30
|
34
|
29
|
35
|
||||||||||||
Inventory write-down
|
2
|
2
|
1
|
3
|
||||||||||||
Unit costs (1) (2)
|
$
|
68
|
$
|
85
|
$
|
68
|
$
|
85
|
1)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
2)
|
Does not include deferred stripping or capital expenditures.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Copper price (realized – US$/pound)
|
$
|
2.76
|
$
|
3.07
|
$
|
2.72
|
$
|
3.16
|
||||||||
Production (000’s tonnes)
|
93
|
87
|
174
|
172
|
||||||||||||
Sales (000’s tonnes)
|
97
|
87
|
168
|
170
|
||||||||||||
Gross profit, before depreciation and amortization
|
317
|
$
|
293
|
527
|
$
|
611
|
||||||||||
Gross profit
|
$
|
171
|
$
|
160
|
$
|
268
|
$
|
360
|
||||||||
Property, plant and equipment expenditures
|
$
|
68
|
$
|
86
|
$
|
144
|
$
|
202
|
($ in millions)
|
Three months
ended June 30,
|
|||
As reported in the second quarter of 2014
|
$
|
293
|
||
Increase (decrease):
|
||||
Copper price realized (US$ price)
|
(72
|
)
|
||
Sales volume
|
26
|
|||
Co-product and by-product revenues
|
(4
|
)
|
||
Smelter processing charges
|
(9
|
)
|
||
Unit operating costs
|
22
|
|||
Royalties
|
8
|
|||
Copper inventory write-down
|
(3
|
)
|
||
Foreign exchange
|
56
|
|||
Net increase
|
24
|
|||
As reported in current quarter
|
$
|
317
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(amounts reported in US$ per pound)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Adjusted cash cost of sales (1)
|
$
|
1.47
|
$
|
1.71
|
$
|
1.51
|
$
|
1.69
|
||||||||
Smelter processing charges
|
0.24
|
0.22
|
0.24
|
0.21
|
||||||||||||
Total cash unit costs before by-product margins (1)
|
$
|
1.71
|
$
|
1.93
|
$
|
1.75
|
$
|
1.90
|
||||||||
Cash margin for by-products (1) (2)
|
(0.22
|
)
|
(0.29
|
)
|
(0.24
|
)
|
(0.27
|
)
|
||||||||
Total cash unit costs after by-product margins (1)
|
$
|
1.49
|
$
|
1.64
|
$
|
1.51
|
$
|
1.63
|
1)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
2)
|
By-products includes both by-products and co-products.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Zinc price (realized – US$/lb)
|
$
|
0.98
|
$
|
0.96
|
$
|
0.98
|
$
|
0.93
|
||||||||
Production (000’s tonnes)
|
||||||||||||||||
Refined zinc
|
75
|
72
|
150
|
134
|
||||||||||||
Zinc in concentrate (1)
|
163
|
141
|
315
|
293
|
||||||||||||
Sales (000’s tonnes)
|
||||||||||||||||
Refined zinc
|
78
|
72
|
151
|
134
|
||||||||||||
Zinc in concentrate (1)
|
88
|
93
|
228
|
232
|
||||||||||||
Gross profit before depreciation and amortization
|
$
|
143
|
$
|
140
|
$
|
322
|
$
|
261
|
||||||||
Gross profit
|
$
|
105
|
$
|
112
|
$
|
248
|
$
|
203
|
||||||||
Property, plant and equipment expenditures
|
$
|
25
|
$
|
44
|
$
|
41
|
$
|
80
|
1)
|
Represents production and sales from Red Dog and Pend Oreille, including 6,000 tonnes of pre-commercial production and sales volume for Pend Oreille in the first quarter. Excludes co-product zinc production from our copper business unit.
|
($ in millions)
|
Three months
ended June 30,
|
|||
As reported in the second quarter of 2014
|
$
|
140
|
||
Increase (decrease):
|
||||
Zinc price realized (US$ price)
|
10
|
|||
Sales volume
|
1
|
|||
Co-product and by-product contribution
|
(17
|
)
|
||
Unit operating costs
|
(22
|
)
|
||
Royalties
|
4
|
|||
Foreign exchange
|
27
|
|||
Net increase
|
3
|
|||
As reported in current quarter
|
$
|
143
|
Outstanding at
|
Outstanding at
|
|||||||||||||||
March 31, 2015
|
June 30, 2015
|
|||||||||||||||
(payable pounds in millions)
|
Pounds
|
US$/lb
|
Pounds
|
US$/lb
|
||||||||||||
Copper
|
214
|
2.73
|
251
|
2.60
|
||||||||||||
Zinc
|
93
|
0.94
|
103
|
0.90
|
June 30,
|
December 31,
|
|||||||
($ in millions)
|
2015
|
2014
|
||||||
Term notes
|
$
|
7,134
|
$
|
7,132
|
||||
Other
|
129
|
144
|
||||||
Total debt (US$ in millions)
|
$
|
7,263
|
$
|
7,276
|
||||
Canadian $ equivalent (1)
|
9,072
|
8,441
|
||||||
Less cash balances
|
(1,327
|
)
|
(2,029
|
)
|
||||
Net debt
|
$
|
7,745
|
$
|
6,412
|
||||
Debt to debt-plus-equity ratio (2) (3)
|
32
|
%
|
31
|
%
|
||||
Net-debt to net-debt-plus-equity ratio (2)
|
29
|
%
|
25
|
%
|
||||
Average interest rate
|
4.8
|
%
|
4.8
|
%
|
1)
|
Translated at period end exchange rates.
|
2)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
3)
|
Our revolving credit facility requires us to maintain a debt to debt-plus-equity ratio not greater than 50%.
|
($ in millions)
|
Sustaining
|
Major Enhancement
|
New Mine Development
|
Sub-
total
|
Capitalized Stripping
|
Total
|
||||||||||||||||||
Coal
|
$
|
34
|
$
|
14
|
$
|
-
|
$
|
48
|
$
|
209
|
$
|
257
|
||||||||||||
Copper
|
78
|
6
|
60
|
144
|
100
|
244
|
||||||||||||||||||
Zinc
|
32
|
9
|
-
|
41
|
32
|
73
|
||||||||||||||||||
Energy
|
4
|
-
|
462
|
466
|
-
|
466
|
||||||||||||||||||
Corporate
|
1
|
-
|
-
|
1
|
-
|
1
|
||||||||||||||||||
$
|
149
|
$
|
29
|
$
|
522
|
$
|
700
|
$
|
341
|
$
|
1,041
|
(in millions, except for share data)
|
2015
|
2014
|
2013
|
|||||||||||||||||||||||||||||||||
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
||||||||||||||||||||||||||||
Revenues
|
$
|
1,999
|
$
|
2,024
|
$
|
2,256
|
$
|
2,250
|
$
|
2,009
|
$
|
2,084
|
$
|
2,376
|
$
|
2,524
|
$
|
2,152
|
||||||||||||||||||
Gross profit
|
311
|
348
|
416
|
414
|
298
|
407
|
546
|
597
|
582
|
|||||||||||||||||||||||||||
EBITDA (1)
|
596
|
546
|
582
|
651
|
558
|
557
|
766
|
815
|
670
|
|||||||||||||||||||||||||||
Profit attributable to
shareholders
|
63
|
68
|
129
|
84
|
80
|
69
|
232
|
267
|
143
|
|||||||||||||||||||||||||||
Earnings per share
|
$
|
0.11
|
$
|
0.12
|
$
|
0.23
|
$
|
0.14
|
$
|
0.14
|
$
|
0.12
|
$
|
0.40
|
$
|
0.46
|
$
|
0.25
|
||||||||||||||||||
Cash flow from operations
|
332
|
372
|
743
|
554
|
436
|
545
|
769
|
656
|
690
|
1)
|
Non-GAAP financial measure. See “Use of Non-GAAP Financial Measures” section for further information.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(Teck’s share in CAD$ millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
REVENUE
|
||||||||||||||||
Coal
|
$
|
764
|
$
|
833
|
$
|
1,629
|
$
|
1,713
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
322
|
266
|
476
|
490
|
||||||||||||
Antamina
|
147
|
149
|
296
|
327
|
||||||||||||
Quebrada Blanca
|
78
|
92
|
168
|
190
|
||||||||||||
Carmen de Andacollo
|
122
|
109
|
237
|
247
|
||||||||||||
Duck Pond
|
35
|
29
|
45
|
41
|
||||||||||||
Other
|
-
|
5
|
5
|
7
|
||||||||||||
704
|
650
|
1,227
|
1,302
|
|||||||||||||
Zinc
|
||||||||||||||||
Trail
|
452
|
450
|
930
|
842
|
||||||||||||
Red Dog
|
150
|
147
|
384
|
355
|
||||||||||||
Pend Oreille
|
19
|
-
|
19
|
-
|
||||||||||||
Other
|
3
|
2
|
5
|
5
|
||||||||||||
Inter-segment sales
|
(94
|
)
|
(73
|
)
|
(173
|
)
|
(125
|
)
|
||||||||
530
|
526
|
1,165
|
1,077
|
|||||||||||||
Energy
|
1
|
-
|
2
|
1
|
||||||||||||
TOTAL REVENUE
|
$
|
1,999
|
$
|
2,009
|
$
|
4,023
|
$
|
4,093
|
||||||||
GROSS PROFIT (LOSS)
|
||||||||||||||||
Coal
|
$
|
35
|
$
|
26
|
$
|
144
|
$
|
142
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
101
|
90
|
126
|
164
|
||||||||||||
Antamina
|
70
|
75
|
143
|
187
|
||||||||||||
Quebrada Blanca
|
(9
|
)
|
(16
|
)
|
(18
|
)
|
(20
|
)
|
||||||||
Carmen de Andacollo
|
18
|
12
|
26
|
34
|
||||||||||||
Duck Pond
|
(9
|
)
|
(5
|
)
|
(14
|
)
|
(9
|
)
|
||||||||
Other
|
-
|
4
|
5
|
4
|
||||||||||||
171
|
160
|
268
|
360
|
|||||||||||||
Zinc
|
||||||||||||||||
Trail
|
17
|
34
|
52
|
36
|
||||||||||||
Red Dog
|
84
|
80
|
192
|
168
|
||||||||||||
Pend Oreille
|
(1
|
)
|
-
|
(1
|
)
|
-
|
||||||||||
Other
|
5
|
(2
|
)
|
5
|
(1
|
)
|
||||||||||
105
|
112
|
248
|
203
|
|||||||||||||
Energy
|
-
|
-
|
(1
|
)
|
-
|
|||||||||||
TOTAL GROSS PROFIT
|
$
|
311
|
$
|
298
|
$
|
659
|
$
|
705
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(Teck’s share in CAD$ millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
OPERATING COSTS
|
||||||||||||||||
Coal
|
$
|
309
|
$
|
371
|
$
|
634
|
$
|
719
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
158
|
121
|
253
|
228
|
||||||||||||
Antamina
|
39
|
41
|
83
|
81
|
||||||||||||
Quebrada Blanca
|
57
|
65
|
120
|
130
|
||||||||||||
Carmen de Andacollo
|
74
|
69
|
152
|
150
|
||||||||||||
Duck Pond
|
31
|
23
|
42
|
29
|
||||||||||||
Other
|
-
|
1
|
-
|
3
|
||||||||||||
359
|
320
|
650
|
621
|
|||||||||||||
Zinc
|
||||||||||||||||
Trail
|
104
|
98
|
195
|
192
|
||||||||||||
Red Dog
|
26
|
28
|
73
|
72
|
||||||||||||
Pend Oreille
|
17
|
-
|
17
|
-
|
||||||||||||
Other
|
(2
|
)
|
2
|
-
|
4
|
|||||||||||
145
|
128
|
285
|
268
|
|||||||||||||
Energy
|
-
|
-
|
-
|
-
|
||||||||||||
Total operating costs
|
$
|
813
|
$
|
819
|
$
|
1,569
|
$
|
1,608
|
||||||||
TRANSPORTATION COSTS
|
||||||||||||||||
Coal
|
$
|
239
|
$
|
257
|
$
|
481
|
$
|
492
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
11
|
11
|
18
|
20
|
||||||||||||
Antamina
|
4
|
5
|
8
|
10
|
||||||||||||
Quebrada Blanca
|
1
|
2
|
3
|
3
|
||||||||||||
Carmen de Andacollo
|
7
|
5
|
13
|
15
|
||||||||||||
Duck Pond
|
1
|
2
|
2
|
3
|
||||||||||||
24
|
25
|
44
|
51
|
|||||||||||||
Zinc
|
||||||||||||||||
Trail
|
31
|
30
|
67
|
59
|
||||||||||||
Red Dog
|
19
|
17
|
46
|
46
|
||||||||||||
Pend Oreille
|
-
|
-
|
-
|
-
|
||||||||||||
Other
|
-
|
2
|
-
|
2
|
||||||||||||
50
|
49
|
113
|
107
|
|||||||||||||
Total transportation costs
|
$
|
313
|
$
|
331
|
$
|
638
|
$
|
650
|
||||||||
CONCENTRATE PURCHASES
|
||||||||||||||||
Trail
|
$
|
280
|
$
|
273
|
$
|
576
|
$
|
525
|
||||||||
Inter-segment purchases
|
(94
|
)
|
(73
|
)
|
(173
|
)
|
(125
|
)
|
||||||||
Total concentrate purchases
|
$
|
186
|
$
|
200
|
$
|
403
|
$
|
400
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(Teck’s share in CAD$ millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
ROYALTY COSTS
|
||||||||||||||||
Coal
|
$
|
1
|
$
|
2
|
$
|
4
|
$
|
5
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
-
|
2
|
-
|
3
|
||||||||||||
Antamina
|
3
|
9
|
5
|
15
|
||||||||||||
Duck Pond
|
1
|
1
|
1
|
1
|
||||||||||||
4
|
12
|
6
|
19
|
|||||||||||||
Zinc
|
||||||||||||||||
Red Dog
|
6
|
9
|
42
|
41
|
||||||||||||
Total royalty costs
|
$
|
11
|
$
|
23
|
$
|
52
|
$
|
65
|
||||||||
DEPRECIATION AND AMORTIZATION
|
||||||||||||||||
Coal
|
$
|
180
|
$
|
177
|
$
|
366
|
$
|
355
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
52
|
42
|
79
|
75
|
||||||||||||
Antamina
|
31
|
19
|
57
|
34
|
||||||||||||
Quebrada Blanca
|
29
|
41
|
63
|
77
|
||||||||||||
Carmen de Andacollo
|
23
|
23
|
46
|
48
|
||||||||||||
Duck Pond
|
11
|
8
|
14
|
17
|
||||||||||||
146
|
133
|
259
|
251
|
|||||||||||||
Zinc
|
||||||||||||||||
Trail
|
20
|
15
|
40
|
30
|
||||||||||||
Red Dog
|
15
|
13
|
31
|
28
|
||||||||||||
Pend Oreille
|
3
|
-
|
3
|
-
|
||||||||||||
38
|
28
|
74
|
58
|
|||||||||||||
Energy
|
1
|
-
|
3
|
1
|
||||||||||||
Total depreciation and amortization
|
$
|
365
|
$
|
338
|
$
|
702
|
$
|
665
|
||||||||
TOTAL COST OF SALES
|
$
|
1,688
|
$
|
1,711
|
$
|
3,364
|
$
|
3,388
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(Teck’s share in CAD$ millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Coal
|
$
|
108
|
$
|
137
|
$
|
209
|
$
|
268
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
35
|
30
|
64
|
67
|
||||||||||||
Antamina
|
15
|
15
|
31
|
31
|
||||||||||||
Quebrada Blanca
|
-
|
8
|
3
|
17
|
||||||||||||
Carmen de Andacollo
|
1
|
1
|
2
|
1
|
||||||||||||
51
|
54
|
100
|
116
|
|||||||||||||
Zinc
|
||||||||||||||||
Red Dog
|
16
|
8
|
32
|
19
|
||||||||||||
Total
|
$
|
175
|
$
|
199
|
$
|
341
|
$
|
403
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
Coal
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Waste production (million BCM’s)
|
73.9
|
67.4
|
140.8
|
133.3
|
||||||||||||
Clean coal production (million tonnes)
|
6.6
|
6.4
|
13.4
|
13.1
|
||||||||||||
Clean coal strip ratio (waste BCM’s/coal tonnes)
|
10.8:1
|
10.2:1
|
10.1:1
|
9.8:1
|
||||||||||||
Sales (million tonnes)
|
6.5
|
6.8
|
13.3
|
13.0
|
Tonnes mined (000's)
|
30,874
|
30,953
|
56,866
|
59,664
|
||||||||||||
Tonnes milled (000's)
|
11,625
|
12,701
|
22,768
|
23,457
|
||||||||||||
Copper
|
||||||||||||||||
Grade (%)
|
0.39
|
0.32
|
0.35
|
0.31
|
||||||||||||
Recovery (%)
|
88.1
|
86.5
|
87.9
|
85.1
|
||||||||||||
Production (000's tonnes)
|
40.1
|
35.4
|
70.0
|
62.3
|
||||||||||||
Sales (000's tonnes)
|
45.5
|
35.9
|
67.0
|
64.0
|
||||||||||||
Molybdenum
|
||||||||||||||||
Production (million pounds)
|
0.9
|
1.3
|
1.8
|
2.3
|
||||||||||||
Sales (million pounds)
|
0.9
|
1.1
|
2.2
|
2.3
|
Tonnes mined (000's)
|
56,944
|
49,797
|
106,731
|
95,634
|
||||||||||||
Tonnes milled (000's)
|
||||||||||||||||
Copper-only ore
|
10,355
|
9,260
|
19,281
|
18,353
|
||||||||||||
Copper-zinc ore
|
4,476
|
3,496
|
8,430
|
6,132
|
||||||||||||
14,831
|
12,756
|
27,711
|
24,485
|
|||||||||||||
Copper (1)
|
||||||||||||||||
Grade (%)
|
0.74
|
0.77
|
0.76
|
0.88
|
||||||||||||
Recovery (%)
|
81.4
|
80.6
|
81.3
|
84.2
|
||||||||||||
Production (000's tonnes)
|
86.2
|
80.4
|
168.4
|
181.8
|
||||||||||||
Sales (000's tonnes)
|
80.4
|
81.6
|
161.5
|
174.5
|
||||||||||||
Zinc (1)
|
||||||||||||||||
Grade (%)
|
1.43
|
1.56
|
1.57
|
1.60
|
||||||||||||
Recovery (%)
|
78.3
|
82.7
|
79.9
|
81.8
|
||||||||||||
Production (000's tonnes)
|
56.4
|
47.4
|
104.4
|
80.3
|
||||||||||||
Sales (000's tonnes)
|
48.5
|
51.1
|
103.6
|
86.9
|
||||||||||||
Molybdenum
|
||||||||||||||||
Production (million pounds)
|
1.3
|
0.6
|
2.3
|
2.4
|
||||||||||||
Sales (million pounds)
|
1.0
|
0.9
|
2.1
|
3.2
|
(1)
|
Copper ore grades and recoveries apply to all of the processed ores. Zinc ore grades and recoveries apply to copper-zinc ores only.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
Quebrada Blanca
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Tonnes mined (000's)
|
6,920
|
7,866
|
13,250
|
16,310
|
||||||||||||
Tonnes placed (000's)
|
||||||||||||||||
Heap leach ore
|
1,814
|
1,358
|
3,352
|
2,664
|
||||||||||||
Dump leach ore
|
1,421
|
2,106
|
1,886
|
3,117
|
||||||||||||
3,235
|
3,464
|
5,238
|
5,781
|
|||||||||||||
Grade (SCu%) (1)
|
||||||||||||||||
Heap leach ore
|
0.67
|
0.68
|
0.69
|
0.73
|
||||||||||||
Dump leach ore
|
0.31
|
0.27
|
0.30
|
0.26
|
||||||||||||
Production (000's tonnes)
|
||||||||||||||||
Heap leach ore
|
7.0
|
7.1
|
13.9
|
15.6
|
||||||||||||
Dump leach ore
|
4.5
|
3.3
|
9.8
|
8.7
|
||||||||||||
11.5
|
10.4
|
23.7
|
24.3
|
|||||||||||||
Sales (000's tonnes)
|
10.1
|
12.3
|
22.3
|
24.7
|
(1)
|
For heap leach and dump leach operations, copper grade is reported as % soluble copper (SCu%) rather than % total copper.
|
Tonnes mined (000’s)
|
6,512
|
7,469
|
14,002
|
15,033
|
||||||||||||
Tonnes milled (000’s)
|
4,545
|
4,576
|
8,655
|
9,175
|
||||||||||||
Copper
|
||||||||||||||||
Grade (%)
|
0.44
|
0.43
|
0.45
|
0.43
|
||||||||||||
Recovery (%)
|
88.4
|
86.8
|
88.0
|
87.2
|
||||||||||||
Production (000’s tonnes)
|
17.8
|
17.2
|
33.9
|
34.8
|
||||||||||||
Sales (000’s tonnes)
|
17.4
|
16.2
|
33.6
|
34.5
|
||||||||||||
Gold (1)
|
||||||||||||||||
Production (000’s ounces)
|
11.8
|
12.5
|
22.1
|
24.8
|
||||||||||||
Sales (000’s ounces)
|
10.4
|
10.1
|
19.7
|
21.2
|
||||||||||||
Copper cathode
|
||||||||||||||||
Production (000’s tonnes)
|
1.2
|
1.2
|
2.2
|
2.2
|
||||||||||||
Sales (000’s tonnes)
|
1.0
|
1.1
|
2.0
|
2.1
|
(1)
|
Carmen de Andacollo processes 100% of gold mined, but 75% of the gold produced is for the account of Royal Gold Inc.
|
Tonnes mined (000's)
|
70
|
267
|
176
|
317
|
||||||||||||
Tonnes milled (000’s)
|
170
|
175
|
310
|
302
|
||||||||||||
Copper
|
||||||||||||||||
Production (000's tonnes)
|
3.1
|
4.0
|
6.1
|
7.2
|
||||||||||||
Sales (000's tonnes)
|
5.0
|
3.6
|
6.8
|
5.6
|
||||||||||||
Zinc
|
||||||||||||||||
Production (000's tonnes)
|
4.0
|
4.5
|
7.0
|
8.6
|
||||||||||||
Sales (000's tonnes)
|
5.7
|
7.1
|
5.7
|
7.1
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
Trail
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Concentrate treated (000’s tonnes)
|
||||||||||||||||
Zinc
|
129
|
133
|
273
|
248
|
||||||||||||
Lead
|
28
|
38
|
64
|
73
|
||||||||||||
Metal production
|
||||||||||||||||
Zinc (000's tonnes)
|
75.2
|
71.9
|
150.4
|
134.0
|
||||||||||||
Lead (000's tonnes)
|
16.1
|
22.6
|
37.9
|
42.9
|
||||||||||||
Silver (million ounces)
|
4.9
|
5.8
|
10.6
|
11.0
|
||||||||||||
Gold (000's ounces)
|
13.4
|
14.2
|
28.4
|
26.5
|
||||||||||||
Metal sales
|
||||||||||||||||
Zinc (000's tonnes)
|
78.1
|
72.1
|
151.3
|
134.0
|
||||||||||||
Lead (000's tonnes)
|
16.8
|
22.0
|
37.9
|
41.0
|
||||||||||||
Silver (million ounces)
|
4.9
|
5.8
|
10.5
|
10.9
|
||||||||||||
Gold (000's ounces)
|
12.7
|
15.7
|
29.3
|
27.3
|
Tonnes mined (000's)
|
3,268
|
2,862
|
6,310
|
5,988
|
||||||||||||
Tonnes milled (000's)
|
1,093
|
1,046
|
2,156
|
2,123
|
||||||||||||
Zinc
|
||||||||||||||||
Grade (%)
|
16.5
|
16.5
|
16.5
|
16.7
|
||||||||||||
Recovery (%)
|
85.8
|
82.1
|
84.6
|
82.9
|
||||||||||||
Production (000's tonnes)
|
154.7
|
141.5
|
300.6
|
293.2
|
||||||||||||
Sales (000's tonnes)
|
80.3
|
92.9
|
214.0
|
232.4
|
||||||||||||
Lead
|
||||||||||||||||
Grade (%)
|
4.8
|
4.6
|
4.7
|
4.3
|
||||||||||||
Recovery (%)
|
58.8
|
55.0
|
60.5
|
61.2
|
||||||||||||
Production (000's tonnes)
|
31.0
|
26.7
|
61.7
|
56.1
|
||||||||||||
Sales (000's tonnes)
|
5.6
|
-
|
5.6
|
-
|
Tonnes mined (000's)
|
161
|
-
|
274
|
-
|
||||||||||||
Tonnes milled (000's)
|
159
|
-
|
282
|
-
|
||||||||||||
Zinc
|
||||||||||||||||
Grade (%)
|
6.4
|
-
|
6.0
|
-
|
||||||||||||
Recovery (%)
|
83.1
|
-
|
84.4
|
-
|
||||||||||||
Production (000's tonnes)
|
8.4
|
-
|
14.4
|
-
|
||||||||||||
Sales (000's tonnes)
|
8.4
|
-
|
14.4
|
-
|
||||||||||||
Lead
|
||||||||||||||||
Grade (%)
|
1.4
|
-
|
1.5
|
-
|
||||||||||||
Recovery (%)
|
70.8
|
-
|
72.5
|
-
|
||||||||||||
Production (000's tonnes)
|
1.5
|
-
|
3.0
|
-
|
||||||||||||
Sales (000's tonnes)
|
1.5
|
-
|
3.0
|
-
|
(1)
|
Includes pre-commercial production and sales in the first quarter.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Profit attributable to shareholders
|
$
|
63
|
$
|
80
|
$
|
131
|
$
|
149
|
||||||||
Finance expense net of finance income
|
78
|
74
|
156
|
142
|
||||||||||||
Provision for income and resource taxes
|
90
|
66
|
153
|
159
|
||||||||||||
Depreciation and amortization
|
365
|
338
|
702
|
665
|
||||||||||||
EBITDA
|
$
|
596
|
$
|
558
|
$
|
1,142
|
$
|
1,115
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
($ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Gross profit
|
$
|
311
|
$
|
298
|
$
|
659
|
$
|
705
|
||||||||
Depreciation and amortization
|
365
|
338
|
702
|
665
|
||||||||||||
Gross profit before depreciation and amortization
|
$
|
676
|
$
|
636
|
$
|
1,361
|
$
|
1,370
|
||||||||
Reported as:
|
||||||||||||||||
Coal
|
$
|
215
|
$
|
203
|
$
|
510
|
$
|
497
|
||||||||
Copper
|
||||||||||||||||
Highland Valley Copper
|
153
|
132
|
205
|
239
|
||||||||||||
Antamina
|
101
|
94
|
200
|
221
|
||||||||||||
Quebrada Blanca
|
20
|
25
|
45
|
57
|
||||||||||||
Carmen de Andacollo
|
41
|
35
|
72
|
82
|
||||||||||||
Duck Pond
|
2
|
3
|
-
|
8
|
||||||||||||
Other
|
-
|
4
|
5
|
4
|
||||||||||||
317
|
293
|
527
|
611
|
|||||||||||||
Zinc
|
||||||||||||||||
Trail
|
37
|
49
|
92
|
66
|
||||||||||||
Red Dog
|
99
|
93
|
223
|
196
|
||||||||||||
Pend Oreille
|
2
|
-
|
2
|
-
|
||||||||||||
Other
|
5
|
(2
|
)
|
5
|
(1
|
)
|
||||||||||
143
|
140
|
322
|
261
|
|||||||||||||
Energy
|
1
|
-
|
2
|
1
|
||||||||||||
Gross profit before depreciation and amortization
|
$
|
676
|
$
|
636
|
$
|
1,361
|
$
|
1,370
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(CAD$ in millions, except where noted)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Cost of sales as reported
|
$
|
729
|
$
|
807
|
$
|
1,485
|
$
|
1,571
|
||||||||
Less:
|
||||||||||||||||
Transportation
|
(239
|
)
|
(257
|
)
|
(481
|
)
|
(492
|
)
|
||||||||
Depreciation and amortization
|
(180
|
)
|
(177
|
)
|
(366
|
)
|
(355
|
)
|
||||||||
Inventory write-down
|
(15
|
)
|
(14
|
)
|
(15
|
)
|
(44
|
)
|
||||||||
Adjusted cash cost of sales
|
$
|
295
|
$
|
359
|
$
|
623
|
$
|
680
|
||||||||
Tonnes sold (millions)
|
6.5
|
6.8
|
13.3
|
13.0
|
||||||||||||
Per unit costs - CAD$/tonne
|
||||||||||||||||
Adjusted cash cost of sales
|
45
|
$
|
53
|
$
|
47
|
$
|
52
|
|||||||||
Transportation
|
36
|
37
|
36
|
38
|
||||||||||||
Inventory write-down
|
2
|
2
|
1
|
3
|
||||||||||||
Cash unit costs - CAD$/tonne
|
$
|
83
|
$
|
92
|
$
|
84
|
$
|
93
|
||||||||
US$ AMOUNTS
|
||||||||||||||||
Average exchange rate (CAD$ per US$1.00)
|
$
|
1.23
|
$
|
1.09
|
$
|
1.24
|
$
|
1.10
|
||||||||
Per unit costs - US$/tonne (1)
|
||||||||||||||||
Adjusted cash cost of sales
|
$
|
36
|
$
|
49
|
$
|
38
|
$
|
47
|
||||||||
Transportation
|
30
|
34
|
29
|
35
|
||||||||||||
Inventory write-down
|
2
|
2
|
1
|
3
|
||||||||||||
Cash unit costs - US$/tonne
|
$
|
68
|
$
|
85
|
$
|
68
|
$
|
85
|
(1)
|
Average period exchange rates are used to convert to US$/tonne equivalent.
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(CAD$ in millions, except where noted)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Revenue as reported
|
$
|
704
|
$
|
650
|
$
|
1,227
|
$
|
1,302
|
||||||||
By-product revenue (A) (1)
|
(66
|
)
|
(68
|
)
|
(128
|
)
|
(123
|
)
|
||||||||
Smelter processing charges
|
62
|
45
|
104
|
84
|
||||||||||||
Adjusted revenue
|
$
|
700
|
$
|
627
|
$
|
1,203
|
$
|
1,263
|
||||||||
Cost of sales as reported
|
$
|
533
|
$
|
490
|
$
|
959
|
$
|
942
|
||||||||
Less:
|
||||||||||||||||
Depreciation and amortization
|
(146
|
)
|
(133
|
)
|
(259
|
)
|
(251
|
)
|
||||||||
Inventory write-down
|
(3
|
)
|
-
|
(8
|
)
|
-
|
||||||||||
By-product cost of sales (B) (1)
|
(10
|
)
|
(8
|
)
|
(21
|
)
|
(16
|
)
|
||||||||
Adjusted cash cost of sales
|
$
|
374
|
$
|
349
|
$
|
671
|
$
|
675
|
||||||||
Payable pounds sold (millions) (C)
|
207.2
|
187.2
|
359.1
|
364.1
|
||||||||||||
Adjusted per unit cash costs - CAD$/pound
|
||||||||||||||||
Adjusted cash cost of sales
|
$
|
1.81
|
$
|
1.86
|
$
|
1.87
|
$
|
1.85
|
||||||||
Smelter processing charges
|
0.30
|
0.24
|
0.29
|
0.23
|
||||||||||||
Total cash unit costs - CAD$/pound (D)
|
$
|
2.11
|
$
|
2.10
|
$
|
2.16
|
$
|
2.08
|
||||||||
Cash margin for by-products – CAD$/pound
((A - B)/C) (1)
|
$
|
(0.27
|
)
|
$
|
(0.32
|
)
|
$
|
(0.30
|
)
|
$
|
(0.29
|
)
|
||||
Net cash unit cost CAD$/pound (2)
|
$
|
1.84
|
$
|
1.78
|
$
|
1.86
|
$
|
1.79
|
||||||||
US$ AMOUNTS
|
||||||||||||||||
Average exchange rate (CAD$ per US$1.00) (E)
|
$
|
1.23
|
$
|
1.09
|
$
|
1.24
|
$
|
1.10
|
||||||||
Adjusted per unit costs – US$/pound (3)
|
||||||||||||||||
Adjusted cash cost of sales
|
$
|
1.47
|
$
|
1.71
|
$
|
1.51
|
$
|
1.69
|
||||||||
Smelter processing charges
|
0.24
|
0.22
|
0.24
|
0.21
|
||||||||||||
Total cash unit costs - US$/pound (1)
|
$
|
1.71
|
$
|
1.93
|
$
|
1.75
|
$
|
1.90
|
||||||||
Cash margin for by-products – US$/pound
|
$
|
(0.22
|
)
|
$
|
(0.29
|
)
|
$
|
(0.24
|
)
|
$
|
(0.27
|
)
|
||||
Net cash unit costs – US$/pound
|
$
|
1.49
|
$
|
1.64
|
$
|
1.51
|
$
|
1.63
|
(1)
|
By-products includes both by-products and co-products.
|
(2)
|
Net unit cost cash cost of principal product after deducting co-product and by-product margins per unit of principal product and excluding depreciation and amortization.
|
(3)
|
Average period exchange rates are used to convert to US$/lb equivalent.
|
|
Three months
ended June 30,
|
Six months
ended June 30,
|
||||||||||||||
(CAD$ in millions, except for share data)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Revenue
|
$
|
1,999
|
$
|
2,009
|
$
|
4,023
|
$
|
4,093
|
||||||||
Cost of sales
|
(1,688
|
)
|
(1,711
|
)
|
(3,364
|
)
|
(3,388
|
)
|
||||||||
Gross profit
|
311
|
298
|
659
|
705
|
||||||||||||
Other operating expenses
|
||||||||||||||||
General and administration
|
(24
|
)
|
(30
|
)
|
(49
|
)
|
(61
|
)
|
||||||||
Exploration
|
(15
|
)
|
(14
|
)
|
(28
|
)
|
(26
|
)
|
||||||||
Research and development
|
(13
|
)
|
(7
|
)
|
(20
|
)
|
(16
|
)
|
||||||||
Other operating income (expense) (Note 2)
|
(21
|
)
|
(35
|
)
|
(88
|
)
|
(138
|
)
|
||||||||
Profit from operations
|
238
|
212
|
474
|
464
|
||||||||||||
Finance income
|
-
|
1
|
1
|
2
|
||||||||||||
Finance expense (Note 3)
|
(78
|
)
|
(75
|
)
|
(157
|
)
|
(144
|
)
|
||||||||
Non-operating income (expense) (Note 4)
|
(2
|
)
|
14
|
(24
|
)
|
1
|
||||||||||
Share of losses of associates and joint ventures
|
-
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
|||||||||
Profit before tax
|
158
|
151
|
293
|
321
|
||||||||||||
Provision for income taxes
|
(90
|
)
|
(66
|
)
|
(153
|
)
|
(159
|
)
|
||||||||
Profit for the period
|
$
|
68
|
$
|
85
|
$
|
140
|
$
|
162
|
||||||||
Profit attributable to:
|
||||||||||||||||
Shareholders of the company
|
$
|
63
|
$
|
80
|
$
|
131
|
$
|
149
|
||||||||
Non-controlling interests
|
5
|
5
|
9
|
13
|
||||||||||||
Profit for the period
|
$
|
68
|
$
|
85
|
$
|
140
|
$
|
162
|
||||||||
Earnings per share
|
||||||||||||||||
Basic
|
$
|
0.11
|
$
|
0.14
|
$
|
0.23
|
$
|
0.26
|
||||||||
Diluted
|
$
|
0.11
|
$
|
0.14
|
$
|
0.23
|
$
|
0.26
|
||||||||
Weighted average shares outstanding (millions)
|
576.2
|
576.2
|
576.2
|
576.3
|
||||||||||||
Shares outstanding at end of period (millions)
|
576.2
|
576.1
|
576.2
|
576.1
|
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(CAD$ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Profit for the period
|
$
|
68
|
$
|
85
|
$
|
140
|
$
|
162
|
||||||||
Other comprehensive income (loss) in the period
|
||||||||||||||||
Items that may be reclassified to profit
|
||||||||||||||||
Currency translation differences
(net of taxes of $(15), $(32), $76 and $4)
|
(12
|
)
|
(64
|
)
|
97
|
14
|
||||||||||
Change in fair value of available-for-sale
financial instruments
(net of taxes of $nil, $(1), $(1) and $(2))
|
3
|
10
|
7
|
18
|
||||||||||||
Cash flow hedges
(net of taxes of $(1), $(1), $(1) and $(2))
|
4
|
4
|
4
|
7
|
||||||||||||
(5
|
)
|
(50
|
)
|
108
|
39
|
|||||||||||
Items that will not be reclassified to profit
|
||||||||||||||||
Remeasurements of retirement benefit plans
(net of taxes of $(23), $3, $(18) and $4)
|
44
|
(1
|
)
|
34
|
3
|
|||||||||||
Total other comprehensive
income (loss) for the period
|
39
|
(51
|
)
|
142
|
42
|
|||||||||||
Total comprehensive income for the period
|
$
|
107
|
$
|
34
|
$
|
282
|
$
|
204
|
||||||||
Total other comprehensive income
(loss) attributable to:
|
||||||||||||||||
Shareholders of the company
|
$
|
40
|
$
|
(47
|
)
|
$
|
135
|
$
|
42
|
|||||||
Non-controlling interests
|
(1
|
)
|
(4
|
)
|
7
|
-
|
||||||||||
$
|
39
|
$
|
(51
|
)
|
$
|
142
|
$
|
42
|
||||||||
Total comprehensive income attributable to:
|
||||||||||||||||
Shareholders of the company
|
$
|
103
|
$
|
33
|
$
|
266
|
$
|
191
|
||||||||
Non-controlling interests
|
4
|
1
|
16
|
13
|
||||||||||||
$
|
107
|
$
|
34
|
$
|
282
|
$
|
204
|
|
Three months
ended June 30,
|
Six months
ended June 30,
|
||||||||||||||
(CAD$ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Operating activities
|
||||||||||||||||
Profit for the period
|
$
|
68
|
$
|
85
|
$
|
140
|
$
|
162
|
||||||||
Items not affecting operating cash flows:
|
||||||||||||||||
Depreciation and amortization
|
365
|
338
|
702
|
665
|
||||||||||||
Provision for (recovery of) deferred income taxes
|
30
|
-
|
32
|
(15
|
)
|
|||||||||||
Share of losses of associates and joint ventures
|
-
|
1
|
1
|
2
|
||||||||||||
Gain on sale of investments and assets
|
(6
|
)
|
-
|
(41
|
)
|
-
|
||||||||||
Foreign exchange (gains) losses
|
-
|
(14
|
)
|
21
|
(4
|
)
|
||||||||||
Finance expense
|
78
|
75
|
157
|
144
|
||||||||||||
Other
|
(4
|
)
|
35
|
29
|
36
|
|||||||||||
531
|
520
|
1,041
|
990
|
|||||||||||||
Net change in non-cash working capital items
|
(199
|
)
|
(84
|
)
|
(337
|
)
|
(9
|
)
|
||||||||
332
|
436
|
704
|
981
|
|||||||||||||
Investing activities
|
||||||||||||||||
Purchase of property, plant and equipment
|
(329
|
)
|
(335
|
)
|
(700
|
)
|
(735
|
)
|
||||||||
Capitalized production stripping costs
|
(175
|
)
|
(199
|
)
|
(341
|
)
|
(403
|
)
|
||||||||
Expenditures on financial investments
and other assets
|
(11
|
)
|
(18
|
)
|
(54
|
)
|
(26
|
)
|
||||||||
Proceeds from the sale of investments and
other assets
|
22
|
3
|
64
|
5
|
||||||||||||
(493
|
)
|
(549
|
)
|
(1,031
|
)
|
(1,159
|
)
|
|||||||||
Financing activities
|
||||||||||||||||
Issuance of debt
|
28
|
-
|
28
|
12
|
||||||||||||
Repayment of debt
|
(42
|
)
|
(24
|
)
|
(57
|
)
|
(38
|
)
|
||||||||
Debt interest paid
|
(39
|
)
|
(33
|
)
|
(216
|
)
|
(191
|
)
|
||||||||
Purchase and cancellation of
Class B subordinate voting shares
|
-
|
(5
|
)
|
-
|
(5
|
)
|
||||||||||
Dividends paid
|
-
|
-
|
(259
|
)
|
(259
|
)
|
||||||||||
Distributions to non-controlling interests
|
(3
|
)
|
(4
|
)
|
(5
|
)
|
(11
|
)
|
||||||||
(56
|
)
|
(66
|
)
|
(509
|
)
|
(492
|
)
|
|||||||||
Effect of exchange rate changes on cash
and cash equivalents
|
(23
|
)
|
(76
|
)
|
134
|
29
|
||||||||||
Decrease in cash and cash equivalents
|
(240
|
)
|
(255
|
)
|
(702
|
)
|
(641
|
)
|
||||||||
Cash and cash equivalents at beginning of period
|
1,567
|
2,386
|
2,029
|
2,772
|
||||||||||||
Cash and cash equivalents at end of period
|
$
|
1,327
|
$
|
2,131
|
$
|
1,327
|
$
|
2,131
|
|
June 30,
|
December 31,
|
||||||
(CAD$ in millions)
|
2015
|
2014
|
||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
1,327
|
$
|
2,029
|
||||
Current income taxes receivable
|
72
|
100
|
||||||
Trade accounts receivable
|
1,099
|
1,036
|
||||||
Inventories (Note 5)
|
1,886
|
1,752
|
||||||
4,384
|
4,917
|
|||||||
Financial and other assets
|
943
|
894
|
||||||
Investments in associates and joint ventures
|
38
|
32
|
||||||
Property, plant and equipment (Note 6)
|
29,787
|
28,925
|
||||||
Deferred income tax assets
|
347
|
361
|
||||||
Goodwill
|
1,749
|
1,710
|
||||||
$
|
37,248
|
$
|
36,839
|
|||||
LIABILITIES AND EQUITY
|
||||||||
Current liabilities
|
||||||||
Trade accounts payable and other liabilities
|
$
|
1,451
|
$
|
1,663
|
||||
Dividends payable (Note 8(d))
|
86
|
259
|
||||||
Current income taxes payable
|
10
|
59
|
||||||
Debt (Note 7)
|
419
|
428
|
||||||
1,966
|
2,409
|
|||||||
Debt (Note 7)
|
8,653
|
8,013
|
||||||
Deferred income tax liabilities
|
6,153
|
6,091
|
||||||
Retirement benefit liabilities
|
577
|
572
|
||||||
Other liabilities and provisions
|
852
|
918
|
||||||
Equity
|
||||||||
Attributable to shareholders of the company
|
18,797
|
18,606
|
||||||
Attributable to non-controlling interests
|
250
|
230
|
||||||
19,047
|
18,836
|
|||||||
$
|
37,248
|
$
|
36,839
|
Six months
ended June 30,
|
||||||||
(CAD$ in millions)
|
2015
|
2014
|
||||||
Class A common shares
|
$
|
7
|
$
|
7
|
||||
Class B subordinate voting shares
|
||||||||
Beginning of period
|
6,502
|
6,503
|
||||||
Share repurchase
|
-
|
(2
|
)
|
|||||
Issued on exercise of options
|
-
|
1
|
||||||
End of period
|
6,502
|
6,502
|
||||||
Retained earnings
|
||||||||
Beginning of period
|
11,723
|
11,853
|
||||||
Profit for the period attributable to shareholders of the company
|
131
|
149
|
||||||
Dividends declared
|
(86
|
)
|
(259
|
)
|
||||
Share repurchase
|
-
|
(2
|
)
|
|||||
Remeasurements of retirement benefit plans
|
34
|
3
|
||||||
End of period
|
11,802
|
11,744
|
||||||
Contributed surplus
|
||||||||
Beginning of period
|
149
|
130
|
||||||
Share option compensation expense
|
11
|
8
|
||||||
End of period
|
160
|
138
|
||||||
Accumulated other comprehensive income (loss)
attributable to shareholders of the company (Note 8(b))
|
||||||||
Beginning of period
|
225
|
104
|
||||||
Other comprehensive income
|
135
|
42
|
||||||
Less remeasurements of retirement benefit plans recorded in retained earnings
|
(34
|
)
|
(3
|
)
|
||||
End of period
|
326
|
143
|
||||||
Non-controlling interests
|
||||||||
Beginning of period
|
230
|
214
|
||||||
Profit for the period attributable to non-controlling interests
|
9
|
13
|
||||||
Other comprehensive income attributable to non-controlling interests
|
7
|
-
|
||||||
Other
|
9
|
-
|
||||||
Dividends or distributions
|
(5
|
)
|
(11
|
)
|
||||
End of period
|
250
|
216
|
||||||
Total equity
|
$
|
19,047
|
$
|
18,750
|
1. | BASIS OF PREPARATION |
2. | OTHER OPERATING INCOME (EXPENSE) |
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(CAD$ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Settlement pricing adjustments
|
$
|
(32
|
)
|
$
|
31
|
$
|
(76
|
)
|
$
|
(32
|
)
|
|||||
Share-based compensation (Note 8(a))
|
2
|
(12
|
)
|
(12
|
)
|
(13
|
)
|
|||||||||
Environmental and care and maintenance costs
|
13
|
(27
|
)
|
1
|
(37
|
)
|
||||||||||
Social responsibility and donations
|
(1
|
)
|
(3
|
)
|
(4
|
)
|
(8
|
)
|
||||||||
Gain on sale of assets
|
1
|
-
|
36
|
-
|
||||||||||||
Impairment of operating assets
|
-
|
-
|
-
|
(12
|
)
|
|||||||||||
Commodity derivatives
|
3
|
(7
|
)
|
(12
|
)
|
(4
|
)
|
|||||||||
Other
|
(7
|
)
|
(17
|
)
|
(21
|
)
|
(32
|
)
|
||||||||
$
|
(21
|
)
|
$
|
(35
|
)
|
$
|
(88
|
)
|
$
|
(138
|
)
|
3. | FINANCE EXPENSE |
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(CAD$ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Debt interest
|
$
|
107
|
$
|
95
|
$
|
212
|
$
|
190
|
||||||||
Financing fees and discount amortization
|
2
|
2
|
4
|
3
|
||||||||||||
Net interest expense on retirement benefit plans
|
2
|
3
|
6
|
8
|
||||||||||||
Accretion on decommissioning and
restoration provisions
|
16
|
17
|
31
|
34
|
||||||||||||
Other
|
6
|
3
|
11
|
4
|
||||||||||||
133
|
120
|
264
|
239
|
|||||||||||||
Less capitalized borrowing costs
|
(55
|
)
|
(45
|
)
|
(107
|
)
|
(95
|
)
|
||||||||
$
|
78
|
$
|
75
|
$
|
157
|
$
|
144
|
4. | NON-OPERATING INCOME (EXPENSE) |
Three months
ended June 30,
|
Six months
ended June 30,
|
|||||||||||||||
(CAD$ in millions)
|
2015
|
2014
|
2015
|
2014
|
||||||||||||
Foreign exchange gains (losses)
|
$
|
-
|
$
|
14
|
$
|
(21
|
)
|
$
|
4
|
|||||||
Provision for marketable securities
|
(6
|
)
|
-
|
(7
|
)
|
-
|
||||||||||
Gain on sale of investments
|
4
|
-
|
4
|
-
|
||||||||||||
Other
|
-
|
-
|
-
|
(3
|
)
|
|||||||||||
$
|
(2
|
)
|
$
|
14
|
$
|
(24
|
)
|
$
|
1
|
5. | INVENTORIES |
6. | PROPERTY, PLANT AND EQUIPMENT |
6. | PROPERTY, PLANT AND EQUIPMENT, continued |
7. | DEBT |
(CAD$ in millions)
|
June 30, 2015
|
December 31, 2014
|
||||||||||||||
|
|
|
|
|
||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Value
|
Value
|
Value
|
Value
|
|||||||||||||
5.375% notes due October 2015 (US$300 million)
|
$
|
375
|
$
|
378
|
$
|
348
|
$
|
358
|
||||||||
3.15% notes due January 2017 (US$300 million)
|
374
|
381
|
347
|
356
|
||||||||||||
3.85% notes due August 2017 (US$300 million)
|
372
|
387
|
345
|
360
|
||||||||||||
2.5% notes due February 2018 (US$500 million)
|
621
|
612
|
577
|
569
|
||||||||||||
3.0% notes due March 2019 (US$500 million)
|
621
|
602
|
577
|
567
|
||||||||||||
4.5% notes due January 2021 (US$500 million)
|
620
|
602
|
576
|
581
|
||||||||||||
4.75% notes due January 2022 (US$700 million)
|
869
|
817
|
807
|
796
|
||||||||||||
3.75% notes due February 2023 (US$750 million)
|
925
|
809
|
859
|
788
|
||||||||||||
6.125% notes due October 2035 (US$700 million)
|
858
|
734
|
796
|
752
|
||||||||||||
6.0% notes due August 2040 (US$650 million)
|
808
|
653
|
750
|
672
|
||||||||||||
6.25% notes due July 2041 (US$1,000 million)
|
1,235
|
1,011
|
1,147
|
1,075
|
||||||||||||
5.2% notes due March 2042 (US$500 million)
|
616
|
461
|
572
|
491
|
||||||||||||
5.4% notes due February 2043 (US$500 million)
|
617
|
468
|
573
|
490
|
||||||||||||
Antamina term loan due April 2020
|
28
|
28
|
26
|
26
|
||||||||||||
Other
|
133
|
133
|
141
|
141
|
||||||||||||
9,072
|
8,076
|
8,441
|
8,022
|
|||||||||||||
Less current portion of long-term debt
|
(419
|
)
|
(422
|
)
|
(428
|
)
|
(438
|
)
|
||||||||
|
$
|
8,653
|
$
|
7,654
|
$
|
8,013
|
$
|
7,584
|
8. | EQUITY |
a) | Share-Based Compensation |
8. | EQUITY, continued |
|
June 30,
|
June 30,
|
||||||
(CAD$ in millions)
|
2015
|
2014
|
||||||
Currency translation adjustment
|
$
|
332
|
$
|
117
|
||||
Unrealized gain on available-for-sale financial instruments (net of tax of $(1) and $(2))
|
11
|
23
|
||||||
Unrealized gain on cash flow hedges (net of tax of $nil and $(1))
|
-
|
5
|
||||||
|
$
|
343
|
$
|
145
|
||||
Accumulated other comprehensive income attributable to:
|
||||||||
Shareholders of the company
|
$
|
326
|
$
|
143
|
||||
Non-controlling interests
|
17
|
2
|
||||||
$
|
343
|
$
|
145
|
c) | Normal Course Issuer Bid |
d) | Dividends |
Three months ended June 30, 2015
|
||||||||||||||||||||||||
(CAD$ in millions)
|
Coal
|
Copper
|
Zinc
|
Energy
|
Corporate
|
Total
|
||||||||||||||||||
Segment revenue
|
$
|
764
|
$
|
704
|
$
|
624
|
$
|
1
|
$
|
-
|
$
|
2,093
|
||||||||||||
Less: Inter-segment revenue
|
-
|
-
|
(94
|
)
|
-
|
-
|
(94
|
)
|
||||||||||||||||
Revenue
|
764
|
704
|
530
|
1
|
-
|
1,999
|
||||||||||||||||||
Cost of sales
|
(729
|
)
|
(533
|
)
|
(425
|
)
|
(1
|
)
|
-
|
(1,688
|
)
|
|||||||||||||
Gross profit
|
35
|
171
|
105
|
-
|
-
|
311
|
||||||||||||||||||
Other operating income (expenses)
|
(7
|
)
|
(49
|
)
|
27
|
(4
|
)
|
(40
|
)
|
(73
|
)
|
|||||||||||||
Profit from operations
|
28
|
122
|
132
|
(4
|
)
|
(40
|
)
|
238
|
||||||||||||||||
Net finance expense
|
(8
|
)
|
(5
|
)
|
(8
|
)
|
-
|
(57
|
)
|
(78
|
)
|
|||||||||||||
Non-operating income (expenses)
|
-
|
1
|
(2
|
)
|
-
|
(1
|
)
|
(2
|
)
|
|||||||||||||||
Share of losses of associates and
joint ventures
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Profit before tax
|
20
|
118
|
122
|
(4
|
)
|
(98
|
)
|
158
|
||||||||||||||||
Capital expenditures
|
$
|
131
|
$
|
119
|
$
|
41
|
$
|
213
|
$
|
-
|
$
|
504
|
Three months ended June 30, 2014
|
||||||||||||||||||||||||
(CAD$ in millions)
|
Coal
|
Copper
|
Zinc
|
Energy
|
Corporate
|
Total
|
||||||||||||||||||
Segment revenue
|
$
|
833
|
$
|
650
|
$
|
599
|
$
|
-
|
$
|
-
|
$
|
2,082
|
||||||||||||
Less: Inter-segment revenue
|
-
|
-
|
(73
|
)
|
-
|
-
|
(73
|
)
|
||||||||||||||||
Revenue
|
833
|
650
|
526
|
-
|
-
|
2,009
|
||||||||||||||||||
Cost of sales
|
(807
|
)
|
(490
|
)
|
(414
|
)
|
-
|
-
|
(1,711
|
)
|
||||||||||||||
Gross profit
|
26
|
160
|
112
|
-
|
-
|
298
|
||||||||||||||||||
Other operating income (expenses)
|
(12
|
)
|
32
|
(32
|
)
|
(4
|
)
|
(70
|
)
|
(86
|
)
|
|||||||||||||
Profit from operations
|
14
|
192
|
80
|
(4
|
)
|
(70
|
)
|
212
|
||||||||||||||||
Net finance expense
|
(9
|
)
|
(6
|
)
|
(9
|
)
|
-
|
(50
|
)
|
(74
|
)
|
|||||||||||||
Non-operating income (expenses)
|
(7
|
)
|
1
|
(4
|
)
|
-
|
24
|
14
|
||||||||||||||||
Share of losses of associates and
joint ventures
|
-
|
-
|
-
|
-
|
(1
|
)
|
(1
|
)
|
||||||||||||||||
Profit before tax
|
(2
|
)
|
187
|
67
|
(4
|
)
|
(97
|
)
|
151
|
|||||||||||||||
Capital expenditures
|
$
|
187
|
$
|
140
|
$
|
52
|
$
|
149
|
$
|
6
|
$
|
534
|
Six months ended June 30, 2015
|
||||||||||||||||||||||||
(CAD$ in millions)
|
Coal
|
Copper
|
Zinc
|
Energy
|
Corporate
|
Total
|
||||||||||||||||||
Segment revenue
|
$
|
1,629
|
$
|
1,227
|
$
|
1,338
|
$
|
2
|
$
|
-
|
$
|
4,196
|
||||||||||||
Less: Inter-segment revenue
|
-
|
-
|
(173
|
)
|
-
|
-
|
(173
|
)
|
||||||||||||||||
Revenue
|
1,629
|
1,227
|
1,165
|
2
|
-
|
4,023
|
||||||||||||||||||
Cost of sales
|
(1,485
|
)
|
(959
|
)
|
(917
|
)
|
(3
|
)
|
-
|
(3,364
|
)
|
|||||||||||||
Gross profit
|
144
|
268
|
248
|
(1
|
)
|
-
|
659
|
|||||||||||||||||
Other operating income (expenses)
|
(19
|
)
|
(88
|
)
|
7
|
(5
|
)
|
(80
|
)
|
(185
|
)
|
|||||||||||||
Profit from operations
|
125
|
180
|
255
|
(6
|
)
|
(80
|
)
|
474
|
||||||||||||||||
Net finance expense
|
(15
|
)
|
(7
|
)
|
(17
|
)
|
-
|
(117
|
)
|
(156
|
)
|
|||||||||||||
Non-operating income (expenses)
|
20
|
(1
|
)
|
21
|
-
|
(64
|
)
|
(24
|
)
|
|||||||||||||||
Share of losses of associates and
joint ventures
|
-
|
-
|
-
|
-
|
(1
|
)
|
(1
|
)
|
||||||||||||||||
Profit before tax
|
130
|
172
|
259
|
(6
|
)
|
(262
|
)
|
293
|
||||||||||||||||
Capital expenditures
|
257
|
244
|
73
|
466
|
1
|
1,041
|
||||||||||||||||||
Goodwill
|
1,203
|
546
|
-
|
-
|
-
|
1,749
|
||||||||||||||||||
Total assets
|
$
|
16,948
|
$
|
10,665
|
$
|
3,417
|
$
|
3,822
|
$
|
2,396
|
$
|
37,248
|
Six months ended June 30, 2014
|
||||||||||||||||||||||||
(CAD$ in millions)
|
Coal
|
Copper
|
Zinc
|
Energy
|
Corporate
|
Total
|
||||||||||||||||||
Segment revenues
|
$
|
1,713
|
$
|
1,302
|
$
|
1,202
|
$
|
1
|
$
|
-
|
$
|
4,218
|
||||||||||||
Less: Inter-segment revenues
|
-
|
-
|
(125
|
)
|
-
|
-
|
(125
|
)
|
||||||||||||||||
Revenues
|
1,713
|
1,302
|
1,077
|
1
|
-
|
4,093
|
||||||||||||||||||
Cost of sales
|
(1,571
|
)
|
(942
|
)
|
(874
|
)
|
(1
|
)
|
-
|
(3,388
|
)
|
|||||||||||||
Gross profit
|
142
|
360
|
203
|
-
|
-
|
705
|
||||||||||||||||||
Other operating income (expenses)
|
(16
|
)
|
(46
|
)
|
(44
|
)
|
(5
|
)
|
(130
|
)
|
(241
|
)
|
||||||||||||
Profit from operations
|
126
|
314
|
159
|
(5
|
)
|
(130
|
)
|
464
|
||||||||||||||||
Net finance expense
|
(19
|
)
|
(12
|
)
|
(16
|
)
|
-
|
(95
|
)
|
(142
|
)
|
|||||||||||||
Non-operating income (expenses)
|
1
|
(5
|
)
|
(1
|
)
|
-
|
6
|
1
|
||||||||||||||||
Share of profit (loss) from associates
|
-
|
-
|
-
|
-
|
(2
|
)
|
(2
|
)
|
||||||||||||||||
Profit before tax
|
108
|
297
|
142
|
(5
|
)
|
(221
|
)
|
321
|
||||||||||||||||
Capital expenditures
|
397
|
318
|
99
|
314
|
10
|
1,138
|
||||||||||||||||||
Goodwill
|
1,203
|
466
|
-
|
-
|
-
|
1,669
|
||||||||||||||||||
Total assets
|
$
|
17,553
|
$
|
9,469
|
$
|
3,162
|
$
|
2,828
|
$
|
3,251
|
$
|
36,263
|
(CAD$ in millions)
|
June 30, 2015
|
December 31, 2014
|
||||||||||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||||||||||||||
Financial assets
|
||||||||||||||||||||||||||||||||
Cash equivalents
|
$
|
1,049
|
$
|
-
|
$
|
-
|
$
|
1,049
|
$
|
1,651
|
$
|
-
|
$
|
-
|
$
|
1,651
|
||||||||||||||||
Marketable equity securities
|
282
|
-
|
-
|
282
|
270
|
-
|
-
|
270
|
||||||||||||||||||||||||
Debt securities
|
-
|
-
|
12
|
12
|
-
|
-
|
16
|
16
|
||||||||||||||||||||||||
Settlements receivable
|
-
|
872
|
-
|
872
|
-
|
886
|
-
|
886
|
||||||||||||||||||||||||
Derivative instruments
|
-
|
2
|
-
|
2
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
$
|
1,331
|
$
|
874
|
$
|
12
|
$
|
2,217
|
$
|
1,921
|
$
|
886
|
$
|
16
|
$
|
2,823
|
|||||||||||||||||
Financial liabilities
|
||||||||||||||||||||||||||||||||
Derivative instruments
|
$
|
-
|
$
|
16
|
$
|
-
|
$
|
16
|
$
|
-
|
$
|
23
|
$
|
-
|
$
|
23
|
||||||||||||||||
Settlements payable
|
-
|
35
|
-
|
35
|
-
|
23
|
-
|
23
|
||||||||||||||||||||||||
$
|
-
|
$
|
51
|
$
|
-
|
$
|
51
|
$
|
-
|
$
|
46
|
$
|
-
|
$
|
46
|