CONDENSED CONSOLIDATED INCOME STATEMENTS |
2
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
3
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION |
4
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
5
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW |
6
|
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
7
|
1. Description of business and nature of operations
|
7
|
2. Basis of preparation and significant accounting policies
|
7
|
3. Expenses |
9
|
4. Trade and other receivables
|
11
|
5. Investments
|
11
|
6. Trade and other payables
|
12
|
7. Inventories
|
12
|
8. Mining interests
|
13
|
9. Long-term debt
|
15
|
10. Non-current derivative financial liabilities |
17
|
11. Leases
|
19
|
12. Derivative instruments
|
20
|
13. Reclamation and closure cost obligations
|
22
|
14. Share capital
|
23
|
15. Income and mining taxes
|
25
|
16. Supplemental cash flow information
|
26 |
17. Segmented information
|
27
|
18. Fair value measurement
|
28
|
19. Commitments |
30
|
Three months ended March 31
|
(in millions of U.S. dollars, except per share amounts)
|
Note
|
2021
|
2020
| ||
Revenues |
164.9
|
142.3
| |||
Operating expenses | 3 | 93.9 | 89.7 | ||
Depreciation and depletion | 45.1 | 52.0 | |||
Revenue less cost of goods sold
|
25.9
|
0.6
| |||
Corporate administration
|
5.3
|
4.5
| |||
Share-based payment expenses
|
14
|
(1.1
|
) |
0.2
| |
Exploration and business development
|
2.1
|
1.8
| |||
Income (loss) from operations
|
19.6
|
(5.9
|
) | ||
Finance income
|
3
|
0.1
|
0.2
| ||
Finance costs
|
3
|
(9.4
|
) |
(13.5
|
) |
Other gains (losses)
|
3
|
8.7
|
(3.9
|
) | |
Income (loss) before taxes
|
19.0
|
(23.1
|
) | ||
Income tax expense
|
15
|
(3.9
|
) |
(5.2
|
) |
Net earnings (loss)
|
15.1
|
(28.3
|
) | ||
Earnings (loss) per share
| |||||
Basic
|
14
|
0.02
|
(0.04
|
) | |
Diluted
|
14
|
0.02
|
(0.04)
|
) | |
Weighted average number of shares outstanding (in millions)
| |||||
Basic
|
14
|
680.6
|
676.0
| ||
Diluted
|
14
|
682.8
|
676.0
|
Three months ended March 31
|
(in millions of U.S. dollars)
| Note |
2021
|
2020
| ||
Net earnings (loss)
|
15.1
|
(28.3
|
) | ||
Other comprehensive income
| |||||
Gain on revaluation of non-current derivative financial liabilities | 10 | 35.3 | 5.5 | ||
Total comprehensive income (loss)
|
50.4
|
(22.8
|
) |
As at March 31 | As at December 31 |
(in millions of U.S. dollars)
| Note |
2021
|
2020
| ||
ASSETS
| |||||
Current assets | |||||
Cash and cash equivalents | 131.2 | 186.3 | |||
Trade and other receivables | 4 | 81.2 | 77.1 | ||
Inventories | 7 | 95.9 | 93.3 | ||
Current income tax receivable | 3.5 | 4.0 | |||
Investments | 5 | 59.7 | 45.4 | ||
Prepaid expenses and other | 9.0 | 12.7 | |||
Total current assets
|
380.5
|
418.8
| |||
Mining interests | 8 | 1,838.8 | 1,828.3 | ||
Other assets | 1.9 | 3.0 | |||
Total assets
|
2,221.2
|
2,250.1
| |||
LIABILITIES AND EQUITY
| |||||
Current liabilities | |||||
Trade and other payables | 6 | 146.3 | 158.0 | ||
Current income tax payable | 0.5 | 0.7 | |||
Total current liabilities
|
146.8
|
158.7
| |||
Reclamation and closure cost obligations | 13 |
108.1
|
113.5
| ||
Non-current derivative financial liabilities | 10 | 558.3 | 617.4 | ||
Long-term debt | 9 | 489.6 | 489.2 | ||
Deferred tax liabilities | 56.7 | 53.5 | |||
Lease obligations | 11 | 17.9 | 19.5 | ||
Other liabilities | 3.3 | 9.0 | |||
Total liabilities
|
1,380.7
|
1,460.8
| |||
Equity
| |||||
Common shares | 14 | 3,154.9 | 3,154.0 | ||
Contributed surplus | 106.6 | 106.7 | |||
Other reserves | (81.5 |
) | (116.8 | ) | |
Deficit | (2,339.5 | ) | (2,354.6 | ) | |
Total equity
|
840.5
|
789.3
| |||
Total liabilities and equity
|
2,221.2
|
2,250.1
|
Three months ended March 31
|
(in millions of U.S. dollars)
| Note |
2021
|
2020
| ||
COMMON SHARES
| |||||
Balance, beginning of period | 3,154.0 | 3,144.5 | |||
Issuance of common shares under First Nations agreements | 0.4 | - | |||
Exercise of options and vested performance share units | 0.5 | 0.1 | |||
Balance, end of period
|
3,154.9
|
3,144.6
| |||
CONTRIBUTED SURPLUS
| |||||
Balance, beginning of period | 106.7 | 105.7 | |||
Exercise of options and vested performance share units | 14 | (0.5 |
) | - | |
Equity settled share-based payments | 0.4 | 0.2 | |||
Balance, end of period
|
106.6
|
105.9
| |||
OTHER RESERVES
| |||||
Balance, beginning of period | (116.8 |
) | (13.6 |
) | |
Gain on revaluation of non-current derivative financial liabilities (net of tax) | 10 | 35.3 | 5.5 | ||
Balance, end of period
|
(81.5)
|
(8.1)
| |||
DEFICIT
| |||||
Balance, beginning of period | (2,354.6 |
) | (2,275.3 |
) | |
Net earnings (loss) | 15.1 | (28.3 |
) | ||
Balance, end of period
|
(2,339.5
|
) |
(2,303.6)
| ||
Total equity
|
840.5
|
938.8
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
Three months ended March 31
|
(in millions of U.S. dollars)
| Note |
2021
|
2020
| ||
OPERATING ACTIVITIES
| |||||
Net earnings (loss) | 15.1 | (28.3 |
) | ||
Adjustments for: | |||||
Foreign exchange loss (gain) | 0.5 | (9.6 |
) | ||
Depreciation and depletion | 45.4 | 52.8 | |||
Financial instrument transaction costs | 0.2 | 3.4 | |||
Other non-cash adjustments | 16 | (8.5 |
) | 12.9 | |
Income tax expense | 15 | 3.9 | 5.2 | ||
Finance income | 3 | (0.1 |
) | (0.2 |
) |
Finance costs | 3 | 9.4 | 13.5 | ||
Reclamation and closure costs paid | 13 | (1.6 |
) | (2.1 |
) |
64.3 | 47.6 | ||||
Change in non-cash operating working capital | 16 |
(10.4
|
) |
4.2
| |
Income taxes paid |
(0.6 |
) |
(0.5 |
) | |
Cash generated from operations
|
53.3
|
51.3
| |||
INVESTING ACTIVITIES
| |||||
Mining interests | (53.8 |
) | (65.3 |
) | |
Proceeds from sale of Mesquite | - | 7.5 | |||
Proceeds from sale of other assets | 0.1 | - | |||
Investment and other financial instrument acquisitions | (23.5 |
) | (0.8 |
) | |
Interest received | 0.1 | 0.2 | |||
Cash used by investing activities
|
(77.1
|
) |
(58.4)
|
) | |
FINANCING ACTIVITIES
| |||||
Proceeds from New Afton free cash flow interest obligation, net of transaction costs | 10 | - | 299.6 | ||
Lease payments | (2.7 |
) | (2.9 |
) | |
Cash settlement of non-current derivative financial liabilities | 10 | (12.0 |
) | (4.7 |
) |
Interest paid | (17.4 |
) | (1.4 |
) | |
Drawdown of credit facility | 9 | - | 35.0 | ||
Cash (used by) generated from financing activities
|
(32.1
|
) |
325.6
| ||
Effect of exchange rate changes on cash and cash equivalents
|
0.8
|
(1.5
|
) | ||
Change in cash and cash equivalents
|
(55.1
|
) |
317.0
| ||
Cash and cash equivalents, beginning of period | 186.3 | 83.4 | |||
Cash and cash equivalents, end of period
|
131.2
|
400.4
| |||
Cash and cash equivalents are comprised of:
| |||||
Cash | 94.3 | 333.2 | |||
Short-term money market instruments |
36.9
|
67.2
| |||
131.2 | 400.4 |
1.
|
Description of business and nature of operations
|
2.
|
Basis of preparation and significant accounting policies
|
(a)
|
Statement of compliance
|
(b)
|
Changes in accounting policies
|
3.
|
Expenses
|
(a)
|
Operating expenses by nature
|
Three months ended March 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
OPERATING EXPENSES BY NATURE
| ||||
Raw materials and consumables
|
39.1
|
34.1
| ||
Salaries and employee benefits
|
36.5
|
30.7
| ||
Contractors
|
18.6
|
16.6
| ||
Repairs and maintenance
|
13.2
|
8.5
| ||
General and administrative
|
5.9
|
5.3
| ||
Leases
|
0.8
|
0.9
| ||
Royalties
|
1.9
|
3.0
| ||
Drilling and analytical
|
1.1
|
0.3
| ||
Other
|
2.6
|
2.4
| ||
Total production expenses
|
119.7
|
101.8
| ||
Less: Production expenses capitalized
|
(26.1
|
) |
(16.8
|
) |
Add: Change in inventories
|
0.3
|
4.7
| ||
Total operating expenses
|
93.9
|
89.7
|
(b)
|
Finance costs and income
|
Three months ended March 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
FINANCE COSTS
| ||||
Interest on senior unsecured notes
|
9.0
|
11.0
| ||
Interest on Credit Facility
|
0.2
|
0.6
| ||
Accretion
|
0.8
|
1.3
| ||
Other finance costs
|
1.6
|
1.1
| ||
Total finance costs
|
11.6
|
14.0
| ||
Less: amounts included in cost of qualifying assets
|
(2.2
|
) |
(0.5
|
) |
Total finance costs
|
9.4
|
13.5
| ||
FINANCE INCOME
| ||||
Interest income
|
0.1
|
0.2
|
(c)
|
Other gains and (losses)
|
Three months ended March 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
OTHER GAINS AND (LOSSES)
| ||||
(Loss) gain on foreign exchange
|
(0.7
|
) |
10.8
| |
Loss on disposal of assets
|
(0.2
|
) |
(0.8
|
) |
Loss on revaluation of investments
|
(8.3
|
) |
-
| |
Unrealized gain (loss) on revaluation of non-current derivative financial liabilities
|
18.7
|
(9.2
|
) | |
Settlement and loss on revaluation of gold price option contracts
|
-
|
(1.2
|
) | |
Settlement and loss on revaluation of copper price option contracts
|
(1.2
|
) |
-
| |
Revaluation of CSP's reclamation and closure cost obligation
|
(0.5
|
) |
0.4
| |
Financial instrument transaction costs
|
(0.2
|
) |
(3.4
|
) |
Flow through share premium(1) |
1.7
|
-
| ||
Other
|
(0.6
|
) |
(0.5
|
) |
Total other gains (losses)
|
8.7
|
(3.9
|
) |
1.
|
In the fourth quarter of 2020 the Company issued 3,824,000 flow through shares and recognized a premium on the difference between the issue price and the share price on the date of close. In 2021 the flow through share premium was recognized in income when the Company renounced the related tax benefits.
|
4.
|
Trade and other receivables
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
TRADE AND OTHER RECEIVABLES
| ||||
Trade receivables
|
11.0
|
8.0
| ||
Sales tax receivable
|
18.5
|
15.4
| ||
Unsettled provisionally priced concentrate derivatives and swap contracts (Note 12)
|
(1.4
|
) |
(0.9
|
) |
Proceeds due from sale of Mesquite(1) |
12.8
|
12.8
| ||
Proceeds due from sale of Blackwater(2) |
39.8
|
39.3
| ||
Other
|
0.5
|
2.5
| ||
Total trade and other receivables
|
81.2
|
77.1
|
1.
|
In 2020, the Company recognized a receivable of $12.8 million for outstanding income tax refunds at Mesquite due to the enactment of the Coronavirus Aid, Relief, and Economic Security Act in the United States, which supported the recognition of this receivable.
|
2.
|
The Blackwater project was sold in the third quarter of 2020 and the Company retained an 8% stream on gold production from the property and C$50.0 million of the proceeds are due on August 21, 2021.
|
5.
|
Investments
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
MARKETABLE EQUITY SECURITIES(3) | ||||
Artemis Gold Inc.(1) |
30.2
|
37.3
| ||
Harte Gold Corp.(2) |
19.1
|
-
| ||
Other marketable securities
|
9.5
|
7.2
| ||
Total marketable equity securities
|
58.8
|
44.5
| ||
Other Investments
|
0.9
|
0.9
| ||
Total investments
|
59.7
|
45.4
|
1.
|
Until November 2021, the Company requires Artemis' consent in order to transfer or dispose of the investment.
|
2.
|
In March 2021, the Company completed the acquisition of 14.9% of Harte Gold Corp for $19.8 million (C$24.8 million).
|
3.
|
In April 2021, the Company completed the acquisition of Talisker Resources Ltd. for $11.0 million (C$13.8 million).
|
6.
|
Trade and other payables
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
TRADE AND OTHER PAYABLES
| ||||
Trade payables
|
49.5
|
41.6
| ||
Interest payable
|
8.9
|
16.7
| ||
Accruals
|
51.0
|
57.4
| ||
Current portion of reclamation and closure cost obligations (Note 13)
|
6.1
|
5.7
| ||
Current portion of gold stream obligation (Note 10)
|
30.8
|
32.1
| ||
Current portion of New Afton free cash flow interest obligation (Note 10)
|
-
|
4.5
| ||
Total trade and other payables
|
146.3
|
158.0
|
7.
|
Inventories
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
INVENTORIES
| ||||
Stockpile ore
|
16.3
|
21.6
| ||
Work-in-process
|
12.3
|
9.3
| ||
Finished goods(1) |
10.8
|
7.0
| ||
Supplies
|
56.5
|
55.4
| ||
Total current inventories
|
95.9
|
93.3
|
1.
|
The amount of inventories recognized in operating expenses for the three months ended March 31, 2021 were $90.3 million (2020 - $84.9 million).
|
8.
|
Mining interests
|
Mining Properties | ||||||||||
Depletable
|
Non- depletable
|
Plant & equipment
|
Construction in
progress
|
Total
|
(in millions of U.S. dollars)
| ||||||||||
COST
| ||||||||||
As at December 31, 2019
|
1,451.1
|
409.0
|
1,260.2
|
129.4
|
3,249.7
| |||||
Additions
|
57.7
|
85.7
|
68.3
|
88.2
|
299.9
| |||||
Disposals
|
-
|
-
|
(9.1
|
) |
-
|
(9.1
|
) | |||
Transfers
|
60.6
|
-
|
-
|
(60.6
|
) |
-
| ||||
Sale of Blackwater, net of retained mineral interest(1) |
-
|
(194.3
|
) |
(20.3
|
) |
-
|
(214.6
|
) |
As at December 31, 2020
|
1,569.4
|
300.4
|
1,299.1
|
157.0
|
3,325.9
| |||||
Additions
|
9.3
|
26.7
|
6.0
|
13.8
|
55.8
| |||||
Disposals
|
(0.2
|
) |
-
|
(1.8
|
) |
-
|
(2.0
|
) | ||
Transfers
|
59.9
|
-
|
30.5
|
(90.4
|
) |
-
| ||||
As at March 31, 2021
|
1,638.4
|
327.1
|
1,333.8
|
80.4
|
3,379.7
|
ACCUMULATED DEPRECIATION | ||||||||||
As at December 31, 2019
|
831.4
|
-
|
490.3
|
-
|
1,321.7
| |||||
Depreciation for the year
|
77.7
|
-
|
112.0
|
-
|
189.7
| |||||
Disposals
|
-
|
-
|
(7.2
|
) |
-
|
(7.2
|
) | |||
Sale of Blackwater(1) |
-
|
-
|
(6.6
|
) |
-
|
(6.6
|
) |
As at December 31, 2020
|
909.1
|
-
|
588.5
|
-
|
1,497.6
| |||||
Depreciation for the period | 20.0 | - | 25.0 | - | 45.0 | |||||
Disposals | - | - | (1.7 |
) | - | (1.7 |
) | |||
As at March 31, 2021
|
929.1
|
-
|
611.8
|
-
|
1,540.9
| |||||
CARRYING AMOUNT
| ||||||||||
As at December 31, 2020
|
660.3
|
300.4
|
710.6
|
157.0
|
1,828.3
| |||||
As at March 31, 2021
|
709.3
|
327.1
|
722.0
|
80.4
|
1,838.8
|
1. |
The Blackwater project was sold in the third quarter of 2020 and the Company retained an 8% stream on gold production from the property.
|
As at March 31, 2021
|
(in millions of U.S. dollars)
|
Depletable
|
Non- depletable
|
Plant &
equipment
|
Construction
in progress
|
Total
| |||||
MINING INTEREST BY SITE
| ||||||||||
New Afton
|
378.7
|
151.6
|
152.9
|
29.6
|
712.8
| |||||
Rainy River
|
330.6
|
24.4
|
566.9
|
50.8
|
972.7
| |||||
Other(1) |
-
|
151.1
|
2.2
|
-
|
153.3
| |||||
Carrying amount
|
709.3
|
327.1
|
722.0
|
80.4
|
1,838.8
|
1. | Other includes corporate balances, exploration properties, and the retained mineral interest in the Blackwater property. |
As at December 31, 2020
|
(in millions of U.S. dollars)
| Depletable | Non-depletable |
Plant &
equipment
|
Construction
in progress
|
Total
| |||||
MINING INTEREST BY SITE
| ||||||||||
New Afton
| 382.9 | 127.5 |
150.0
|
27.4
|
687.8
| |||||
Rainy River
| 277.4 | 21.8 |
558.4
|
129.6
|
987.2
| |||||
Other(1) | - | 151.1 |
2.2
|
-
|
153.3
| |||||
Carrying amount
| 660.3 | 300.4 |
710.6
|
157.0
|
1,828.3
|
1. | Other includes corporate balances, exploration properties, and the retained mineral interest in the Blackwater property. |
9.
|
Long-term debt
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
LONG-TERM DEBT
| ||||
Senior unsecured notes - due May 15, 2025 (a)
|
96.4
|
96.3
| ||
Senior unsecured notes - due July 15, 2027 (b)
|
393.2
|
392.9
| ||
Credit Facility (c)
|
-
|
-
| ||
Total long-term debt
|
489.6
|
489.2
|
(a)
|
Senior Unsecured Notes - due May 15, 2025
|
•
|
During the 12-month period beginning on May 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2025 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date.
|
Date
|
Redemption prices (%)
|
2020
|
104.78
|
2021
|
103.19
|
2022
|
101.59
|
2023 and thereafter
|
100.00
|
(b)
|
Senior Unsecured Notes - due July 15, 2027
|
•
|
At any time prior to July 15, 2023 at a redemption price of 100% of the aggregate principal amount of the 2027 Unsecured Notes, plus a make-whole premium (consisting of the redemption price as described below, and future interest that would have been paid up to the first call date of July 15, 2023), plus accrued and unpaid interest, if any, to the redemption date.
|
•
|
During the 12-month period beginning on July 15 of the years indicated at the redemption prices below, expressed as a percentage of the principal amount of the 2027 Unsecured Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date:
|
Date
|
Redemption prices (%)
|
2023
|
103.75
|
2024
|
101.88
|
2025 and thereafter
|
100.00
|
(c)
|
Credit Facility
|
•
|
The minimum interest coverage ratio, being earnings before interest, taxes, depreciation, amortization, exploration, impairment, and other non-cash adjustments ('Adjusted EBITDA') to interest;
|
•
|
The maximum net debt to Adjusted EBITDA ratio ('Leverage Ratio'); and
|
•
|
The maximum gross secured debt to Adjusted EBITDA ('Secured Leverage Ratio').
|
Twelve months ended March 31 |
Twelve months ended
December 31
|
Financial Covenant
|
2021
|
2020
| |
FINANCIAL COVENANTS
| |||
Minimum interest coverage ratio (Adjusted EBITDA to interest)
|
>3.0:1.0
|
5.2 : 1
|
5.0 : 1
|
Maximum leverage ratio (net debt to Adjusted EBITDA)
| <4.5:1.0
|
2.0 : 1
|
1.8 : 1
|
Maximum secured leverage ratio (secured debt to Adjusted EBITDA)
| <2.0:1.0
|
0.3 : 1
|
0.3 : 1
|
10.
|
Non-current derivative financial liabilities
|
(in millions of U.S. dollars)
|
Rainy River
|
New Afton
|
Total
| |||
CHANGE IN NON-CURRENT DERIVATIVE FINANCIAL LIABILITIES
| ||||||
Balance, December 31, 2019
|
164.5
|
-
|
164.5
| |||
Proceeds received
|
-
|
300.0
|
300.0
| |||
Settlements during the period
|
(24.1
|
) |
-
|
(24.1
|
) | |
Fair value adjustments related to changes in the Company's own credit risk(1) |
19.2
|
84.0
|
103.2
| |||
Other fair value adjustments(2) |
58.3
|
52.1
|
110.4
| |||
Balance, December 31, 2020
|
217.9
|
436.1
|
654.0
| |||
Less: current portion
|
(32.1
|
) |
(4.5
|
) |
(36.6
|
) |
Non-current portion of derivative financial liabilities
|
185.8
|
431.6
|
617.4
| |||
Balance, December 31, 2020
|
217.9
|
436.1
|
654.0
| |||
Settlements during the period
|
(5.9
|
) |
(4.9
|
) |
(10.8
|
) |
Fair value adjustments related to changes in the Company's own credit risk(1) |
(2.4
|
) |
(32.9
|
) |
(35.3
|
) |
Other fair value adjustments(2) |
(6.3
|
) |
(12.5
|
) |
(18.8
|
) |
Balance, March 31, 2021
|
203.3
|
385.8
|
589.1
| |||
Less: current portion(3) |
(30.8
|
) |
-
|
(30.8
|
) | |
Non-current portion of derivative financial liabilities
|
172.5
|
385.8
|
558.3
|
1.
|
Fair value adjustments related to changes in the Company's own credit risk are included in other comprehensive income.
|
2.
|
Other fair value adjustments are included in the consolidated income statements.
|
3.
|
The current portion of the derivative financial liabilities is included in trade and other payables on the statement of financial position.
|
Financial instrument
|
Components of the adjustment to fair value |
Rainy River gold stream obligation
|
•Accretion expense due to passage of time
•Change in the risk-free interest rate
•Change in the Company specific credit spread
•Change in any expected ounces to be delivered
•Change in future metal prices
|
New Afton free cash flow interest obligation
|
•Accretion expense due to passage of time
•Change in the risk-free interest rate
•Change in the Company specific credit spread
•Change in any expected ounces to be delivered
•Change in future metal prices
•Change in production profile, operating and capital costs at New Afton, including considerations to the minimum cash guarantee over the first four
years of the instrument
|
(a)
|
Right-of-use assets
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
RIGHT-OF-USE- ASSETS
| ||||
Opening balance
|
35.2
|
43.2
| ||
Additions
|
-
|
7.5
| ||
Depreciation
|
(3.0
|
) |
(12.9
|
) |
Disposals
|
(0.2
|
) |
(2.6
|
) |
Total right-of-use-assets
|
32.0
|
35.2
|
(b)
|
Lease liabilities
|
As at March 31
|
As at December 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
MATURITY ANALYSIS FOR LEASES
| ||||
Less than 1 year
|
10.3
|
10.6
| ||
Between 1 and 3 years
|
17.9
|
19.3
| ||
Between 3 and 5 years
|
0.2
|
1.5
| ||
Total undiscounted lease payments(1) |
28.4
|
31.4
| ||
Carrying value of lease liabilities
|
27.2
|
29.1
| ||
Less: current portion of lease liabilities(2) |
(9.3
|
) |
(9.6
|
) |
Non-current portion of lease liabilities
|
17.9
|
19.5
|
1.
|
Total undiscounted lease payments excludes leases that are classified as short term and leases for low value assets, which are not recognized as lease liabilities.
|
2.
|
The current portion of the lease liabilities is included in trade and other payables on the statement of financial position.
|
As at March 31 | As at December 31 |
(in millions of U.S. dollars)
|
2021
|
2020
| ||
DERIVATIVE ASSETS | ||||
Copper price option contracts(1) |
0.3
|
-
| ||
Total derivative assets
|
0.3
|
-
| ||
DERIVATIVE LIABILITIES | ||||
Unsettled provisionally priced concentrate derivatives, and swap contracts(2) |
1.4
|
0.9
| ||
Total derivative liabilities
|
1.4
|
0.9
|
1.
|
Copper price option contracts are included within prepaid expenses and other in the statement of financial position.
|
2.
|
Unsettled provisionally priced concentrate derivatives are included within trade and other receivables in the statement of financial position.
|
(a)
|
Provisionally priced contracts
|
Three months ended March 31, 2021
|
(in millions of U.S. dollars) | Gold | Copper |
Total | |||
(LOSS) GAIN ON THE PROVISIONAL PRICING OF CONCENTRATE SALES | ||||||
Realized
|
(0.7
|
) |
0.2
|
(0.5
| ) | |
Unrealized | (0.7 |
) | 1.1 | 0.4 | ||
Total (loss) gain
|
(1.4
| ) |
1.3
|
(0.1
| ) |
Three months ended March 31, 2020
|
(in millions of U.S. dollars)
|
Gold
|
Copper
|
Total
| |||
GAIN (LOSS) ON THE PROVISIONAL PRICING OF CONCENTRATE SALES
| ||||||
Realized
|
0.5
|
(2.2
| ) |
(1.7
|
) | |
Unrealized
|
0.5
|
(2.8
|
) |
(2.3
|
) | |
Total gain (loss)
|
1.0
|
(5.0
|
) |
(4.0
|
) |
Three months ended March 31, 2021
|
(in millions of U.S. dollars) | Gold | Copper |
Total | |||
GAIN (LOSS) ON SWAP CONTRACTS | ||||||
Realized
|
0.9
|
(2.6
|
) |
(1.7
| ) | |
Unrealized | 0.7 | (2.5 |
) | (1.8 |
) | |
Total gain (loss)
|
1.6
|
(5.1
|
) |
(3.5
| ) |
Three months ended March 31, 2020
|
(in millions of U.S. dollars)
|
Gold
|
Copper
|
Total
| |||
(LOSS) GAIN ON SWAP CONTRACTS
| ||||||
Realized
|
(2.5
|
) |
1.9
|
(0.6
|
) | |
Unrealized
|
0.1
|
3.9
|
4.0
| |||
Total (loss) gain
|
(2.4
|
) |
5.8
|
3.4
|
As at March 31
|
As at December 31
|
2021
|
2020
| |||
VOLUMES SUBJECT TO FINAL PRICING NET OF OUTSTANDING SWAPS
| ||||
Gold ounces (000s)
|
1.9
|
1.2
| ||
Copper pounds (millions)
|
0.6
|
1.6
|
(b)
|
Copper put option contracts
|
Quantity
outstanding (lb) |
Remaining team |
Exercise price
($/lb) |
Fair value - asset
(liability)
| |||||
COPPER PRICE OPTION CONTRACTS OUTSTANDING | ||||||||
Copper put contracts - purchased |
22.5 million |
April 2021 - September 2021 |
3.10 |
0.3 |
(in millions of U.S. dollars) |
Rainy
River
|
New Afton
|
Cerro San
Pedro
| Blackwater(1) |
Total |
CHANGES TO RECLAMATION AND CLOSURE COST OBLIGATIONS | ||||||||||
Balance - December 31, 2019
|
67.0
|
18.0
|
12.6
|
9.4
|
107.0
| |||||
Reclamation expenditures
|
(1.2
|
) |
-
|
(5.6
|
) |
-
|
(6.8
|
) | ||
Unwinding of discount
|
1.0
|
0.2
|
0.4
|
0.1
|
1.7
| |||||
Revisions to expected cash flows
|
12.9
|
15.1
|
(3.4
|
) |
0.8
|
25.4
| ||||
Foreign exchange movement
|
1.7
|
0.9
|
(0.4
|
) |
(0.4)
|
1.8
| ||||
Liabilities sold
|
-
|
-
|
-
|
(9.9)
|
(9.9
|
) | ||||
Balance - December 31, 2020
|
81.4
|
34.2
|
3.6
|
-
|
119.2
| |||||
Less: current portion of closure costs (Note 6)
|
(2.5
|
) |
-
|
(3.2
|
) |
-
|
(5.7
|
) | ||
Non-current portion of closure costs
|
78.9
|
34.2
|
0.4
|
-
|
113.5
|
Balance - December 31, 2020
|
81.4
|
34.2
|
3.6
|
-
|
119.2
| |||||
Reclamation expenditures
|
(0.1
|
) |
-
|
(0.9
|
) |
-
|
(1.0
|
) | ||
Unwinding of discount
|
0.2
|
0.1
|
-
|
-
|
0.3
| |||||
Revisions to expected cash flows
|
(5.0
|
) |
(1.1
|
) |
0.5
|
-
|
(5.6
|
) | ||
Foreign exchange movement
|
1.0
|
0.4
|
(0.1
|
) |
-
|
1.3
| ||||
Balance - March 31, 2021
|
77.5
|
33.6
|
3.1
|
-
|
114.2
| |||||
Less: current portion of closure costs (Note 6)
|
(3.4
|
) |
-
|
(2.7
|
) |
-
|
(6.1
|
) | ||
Non-current portion of closure costs
|
74.1
|
33.6
|
0.4
|
-
|
108.1
|
1.
|
The Blackwater project was sold in the third quarter of 2020.
|
Number of shares |
(in millions of U.S. dollars, except where noted)
|
(000s)
|
$
| ||
NO PAR VALUE COMMON SHARES ISSUED
| ||||
Balance at December 31, 2019
|
675,957
|
3,144.5
| ||
Issuance of common shares
|
350
|
0.7
| ||
Issuance of flow through shares(1) |
3,824
|
8.6
| ||
Exercise of options and vested performance share units
|
119
|
0.2
|
Balance at December 31, 2020
| 680,250 | 3,154.0 | ||
Issuance of common shares under First Nations agreements
|
250
|
0.4 | ||
Exercise of options and vested performance share units
|
225
|
0.5 | ||
Balance at March 31, 2021 |
680,725 | 3,154.9 |
1.
| In December 2020, the Company closed a flow-through financing for proceeds of $10.2 million (gross proceeds less equity issuance costs) consisting of the issue and sale of 3,824,000 Common Shares at a price of C$3.40 per share to fund exploration drilling programs at Rainy River and New Afton. |
(b)
|
Share-based payment expenses
|
Three months ended March 31
|
(in millions of U.S. dollars)
|
2021
|
2020
| ||
SHARE-BASED PAYMENT EXPENSES
| ||||
Stock option expense
|
0.2
|
0.2
| ||
Performance share unit expense
|
0.5
|
0.1
| ||
Restricted share unit expense
|
(0.6
| ) |
0.6
| |
Deferred share unit expense
|
(1.5
| ) |
(0.1
| ) |
Shares issued under First Nations agreements
|
(0.1
| ) |
-
| |
Total share-based payment expenses
|
(1.5
| ) |
0.8
|
1.
| For the three months ended March 31, 2021 $(0.4) million of share-based expenses were recognized in operating expenses (2020 - $0.6 million). |
Number of options |
Weighted average
exercise price
|
(000s)
|
C$/share
| |||
CHANGES TO THE COMPANY'S STOCK OPTION PLAN
| ||||
Balance at December 31, 2019
|
5,578
|
2.81
| ||
Granted
|
2,329
|
1.20
| ||
Exercised
|
(32
| ) |
1.17
| |
Forfeited
|
(677
|
) |
4.06
| |
Expired
|
(2,363
|
) |
3.45
| |
Balance at December 31, 2020 | 4,835 | 1.59 | ||
Granted | 1,632 | 2.06 | ||
Exercised | (23 | ) | 1.19 | |
Balance at March 31, 2021 | 6,444 | 1.71 |
(c)
|
Earnings (loss) per share
|
Three months ended March 31 |
(in millions of U.S. dollars, except where noted)
|
2021
|
2020
| ||
CALCULATION OF EARNINGS (LOSS) PER SHARE
| ||||
Net earnings (loss) | 15.1 | (28.3 |
) | |
Basic weighted average number of shares outstanding (in millions)
|
680.6
|
676.0
| ||
Dilution of securities:
| ||||
Stock options | 2.2 | - | ||
Diluted weighted average number of shares outstanding (in millions)
|
682.8
|
676.0
| ||
Net earnings (loss) per share:
| ||||
Basic | 0.02 | (0.04 |
) | |
Diluted | 0.02 | (0.04 |
) |
Three months ended March 31 |
(in millions of units)
|
2021
|
2020
| ||
EQUITY SECURITIES EXCLUDED FROM THE CALCULATION OF DILUTED EARNINGS PER SHARE | ||||
Stock options
|
0.6
|
7.5
|
15.
|
Income and mining taxes
|
Three months ended March 31 |
(in millions of U.S. dollars)
|
2021
|
2020
| ||
CURRENT INCOME AND MINING TAX EXPENSE
| ||||
Canada | 0.6 | 0.8 | ||
Foreign | 0.1 | - | ||
0.7
|
0.8
| |||
DEFERRED INCOME AND MINING TAX EXPENSE | ||||
Canada
|
3.2
|
4.4
| ||
Total income tax expense
|
3.9
|
5.2
|
16.
|
Supplemental cash flow information
|
Three months ended March 31 |
(in millions of U.S. dollars)
|
2021
|
2020
| ||
CHANGE IN NON-CASH OPERATING WORKING CAPITAL
| ||||
Trade and other receivables
|
(4.8
|
) |
1.2
| |
Inventories
|
(1.7
| ) |
2.3
| |
Prepaid expenses and other
|
4.9
|
-
| ||
Trade and other payables
|
(8.8
|
) |
0.7
| |
Total change in non-cash operating working capital
|
(10.4
|
) |
4.2
|
Three months ended March 31 |
(in millions of U.S. dollars)
|
2021
|
2020
| ||
OTHER NON-CASH ADJUSTMENTS
| ||||
Loss on FX derivative
|
-
|
0.3
| ||
Unrealized loss (gain) on concentrate contracts
|
1.4
|
(1.1
|
) | |
Equity settled share-based payment expense
|
0.2
|
0.2
| ||
Loss on disposal of assets
|
0.2
|
0.8
| ||
Settlement and loss on revaluation of gold price option contracts
|
-
|
1.2
| ||
Loss on revaluation of copper price option contracts
|
1.2
|
-
| ||
Unrealized (gain) loss on revaluation of non-current derivative financial instruments
|
(18.8
|
) |
9.2
| |
Revaluation of CSP's reclamation and closure cost obligation
|
0.5
|
(0.4
|
) | |
Inventory provision
|
0.2
|
2.7
| ||
Loss on revaluation of investments
|
8.3
|
-
| ||
Flow through share premium
|
(1.7
|
) |
-
| |
Total other non-cash adjustments
|
(8.5
|
) |
12.9
|
17.
|
Segmented information
|
(a)
|
Segment revenues and results
|
Three months ended March 31, 2021 |
(in millions of U.S. dollars)
|
Rainy River
|
New Afton
|
Corporate
|
Total
| ||||
OPERATING SEGMENT RESULTS
| ||||||||
Gold revenues
|
92.5
|
19.9
|
-
|
112.4
| ||||
Copper revenues
|
-
|
48.1
|
-
|
48.1
| ||||
Silver revenues
|
3.3
|
1.1
|
-
|
4.4
| ||||
Total revenues(1) |
95.8
|
69.1
|
-
|
164.9
| ||||
Operating expenses
|
53.9
|
40.0
|
-
|
93.9
| ||||
Depreciation and depletion
|
33.8
|
11.3
|
-
|
45.1
| ||||
Revenue less cost of goods sold
|
8.1
|
17.8
|
-
|
25.9
| ||||
Corporate administration
|
-
|
-
|
5.3
|
5.3
| ||||
Share-based payment expenses
|
-
|
-
|
(1.1
|
) |
(1.1
| ) | ||
Exploration and business development
|
0.4
|
1.4
|
0.3
|
2.1
| ||||
Income (loss) from operations
|
7.7
|
16.4
|
(4.5
|
) |
19.6
|
1.
| Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the three months ended March 31, 2021. |
Three months ended March 31, 2020 |
(in millions of U.S. dollars)
|
Rainy River
|
New Afton
|
Corporate
|
Total
| ||||
OPERATING SEGMENT RESULTS
| ||||||||
Gold revenues
|
76.8
|
21.8
|
-
|
98.6
| ||||
Copper revenues
|
-
|
41.7
|
-
|
41.7
| ||||
Silver revenues
|
1.0
|
1.0
|
-
|
2.0
| ||||
Total revenues(1) |
77.8
|
64.5
|
-
|
142.3
| ||||
Operating expenses
|
56.8
|
32.9
|
-
|
89.7
| ||||
Depreciation and depletion
|
35.4
|
16.6
|
-
|
52.0
| ||||
Revenue less cost of goods sold
|
(14.4
| ) |
15.0
|
-
|
0.6
| |||
Corporate administration
|
-
|
-
|
4.5
|
4.5
| ||||
Share-based payment expenses
|
-
|
-
|
0.2
|
0.2
| ||||
Exploration and business development
|
0.2
|
1.5
|
0.1
|
1.8
| ||||
Income (loss) from operations
|
(14.6
|
) |
13.5
|
(4.8
| ) |
(5.9
| ) |
1. | Segmented revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the three months ended March 31,2020. |
(b)
|
Segmented assets and liabilities
|
As at March 31 |
Total assets
As at
December 31 |
As at March 31 |
Total liabilities
As at
December 31 |
Capital expenditures(1)
Three months ended March 31 | ||||||||
(in millions of U.S. dollars)
|
2021
|
2020
|
2021
|
2020
|
2021
|
2020
| ||||||
SEGMENTED ASSETS AND LIABILITIES
| ||||||||||||
Rainy River
|
1,063.0
|
1,090.2
|
351.1
|
374.8
|
28.1
|
33.5
| ||||||
New Afton
|
771.7
|
749.7
|
516.2
|
551.5
|
25.6
|
23.7
| ||||||
Other(2) |
386.5
|
410.2
|
513.4
|
534.5
|
0.1
|
8.1
| ||||||
Total segmented assets, liabilities and capital expenditures
|
2,221.2
|
2,250.1
|
1,380.7
|
1,460.8
|
53.8
|
65.3
|
1.
|
Capital expenditures per consolidated statement of cash flows.
|
2.
|
Other includes corporate balance, exploration properties, the stream on Blackwater gold production, and Cerro San Pedro.
|
As at March 31, 2021 |
As at December 31, 2020 |
(in millions of U.S. dollars)
|
Category |
Level
|
Level
| ||
FINANCIAL ASSETS
| |||||
Cash and cash equivalents
| Financial assets at amortized cost | 131.2 | 186.3 | ||
Trade and other receivables
| Financial assets at amortized cost | 69.8 | 65.2 | ||
Provisionally priced contracts
| Financial instruments at FVTPL |
2 | 0.4 |
2
| 8.9 |
Gold and copper swap contracts
| Financial instruments at FVTPL |
2
| (1.8) |
2
| (9.8) |
Copper price option contracts
| Financial Instruments at FVTPL |
2
| 0.3 |
2
| - |
Proceeds due from income tax refunds at Mesquite(1) | Financial assets at amortized cost |
1
| 12.8 |
1
| 12.8 |
Investments
| Financial instruments at FVTPL |
1
| 59.7 |
1
| 46.2 |
FINANCIAL LIABILITIES
| |||||
Trade and other payables(2) | Financial liabilities at amortized cost | 109.4 | 115.7 | ||
Long-term debt
| Financial liabilities at amortized cost | 489.6 | 489.2 | ||
Gold stream obligation
| Financial instruments at FVTPL |
3
| 203.3 |
3
| 217.9 |
Free cash flow interest obligation
| Financial instruments at FVTPL |
3 | 385.8 |
3
| 436.1 |
1.
|
Proceeds due from income tax refunds at Mesquite are included in trade and other receivables on the consolidated statement of financial position.
|
2.
|
Trade and other payables exclude the short-term portions of reclamation and closure cost obligations, the gold stream obligation and the free cash flow interest obligation.
|
As at March 31, 2021 |
As at December 31, 2020 |
(in millions of U.S. dollars)
|
Carrying
value
|
Fair value
|
Carrying
value
|
Fair value
|
FINANCIAL ASSETS
| ||||
Cash and cash equivalents
|
131.2
|
131.2
|
186.3
|
186.3
|
Trade and other receivables
|
69.8
|
69.8
|
65.2
|
65.2
|
Provisionally priced contracts
|
0.4
|
0.4 |
8.9
|
8.9
|
Gold and copper swap contracts
|
(1.8)
|
(1.8)
|
(9.8)
|
(9.8)
|
Copper price option contracts
|
0.3 |
0.3
|
-
|
-
|
Proceeds due from income tax refunds at Mesquite(2) |
12.8
|
12.8
|
12.8
|
12.8
|
Investments
|
59.7
|
59.7
|
46.2
|
46.2
|
FINANCIAL LIABILITIES
| ||||
Trade and other payables(1) |
109.4
|
109.4
|
115.7
|
115.7
|
Long-term debt
|
489.6
|
518.4
|
489.2
|
548.0
|
Gold stream obligation
|
203.3
|
203.3
|
217.9
|
217.9
|
Free cash flow interest obligation
|
385.8
|
385.8
|
436.1
|
436.1
|
1.
|
Trade and other payables exclude the short-term portion of reclamation and closure cost obligation and the short-term portion of the gold stream obligation and New Afton free cash flow interest obligation.
|
2.
|
Proceeds due from income tax refunds at Mesquite are included in trade and other receivables on the consolidated statement of financial position.
|
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New Gold Inc. published this content on 05 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2021 15:49:02 UTC.