18 N o t e s 1 I n v e n t o r y a djus t m e n t r e f le c t s p r o d uc t i o n c o st s a ss o c i a t e d wi t h un so ld b ull i o n a n d i n c i r c ui t i n v e n t o r y C a sh ma r gi n f r om min e op er a t io ns C a s h ma r gin f r om mi n e o pe r a t ion s is a n o n G A A P me a s ur e whic h ma y n ot b e c o mpa r a b l e t o in fo r ma tio n i n oth e r gol d p r oduc e r s r e por ts a n d f il in g s It is c a l c ul a te d a s the dif f e r e n c e b e t w e e n gol d s a l e s a n d pr oduc ti on c osts c omp r is e d of m in e s it e op e r a ti n g c osts a n d p r od uc tion r oya l tie s pe r th e C om pa n ys F i n a n c i a l R e por ts The C omp a n y b e l ie v e s it il l us tr a te s th e p e r for ma n c e o f th e C omp a n ys op e r a ti n g min e s a n d e n a b l e s in v e s to r s to b e t te r und e r s ta n d the C omp a n ys p e r f or ma n c e in c om pa r iso n to oth e r gol d pr oduc e r s who pr e s e n t r e s ul ts on a s im il a r b a s is A m o u n t s in t h o u s a n d s o f C a n a d ia n d o l l a r s e x c e p t p e r t o n n e a m o u n t s Q 2 2 0 1 3 Q 1 2 0 1 3 Q 2 2 0 1 2 Y T D 2 0 1 3 Y T D 2 0 1 2 H o lt Mi n e M i n e s i t e c o s t s 9 2 7 0 8 5 6 3 7 5 0 8 1 7 8 3 3 1 4 6 7 1 I n v e n t o r y a d j u s t m e n t s 1 4 2 1 1 0 1 7 6 596 605 M i n e s i t e o p e r a t i n g c o s t s 8 8 4 9 9 5 8 0 7 5 0 2 1 8 4 2 9 1 5 2 7 6 D i v i d e d b y t o n n e s o f o r e m i l l e d 9 3 0 8 1 8 9 9 8 5 7 8 4 2 9 1 8 3 0 6 6 1 4 6 3 6 6 M i n e s i t e c o s t p e r t o n n e m i l l e d 95 106 96 101 104 H o llo w ay Mi n e M i n e s i t e c o s t s 5 0 1 5 5 0 5 9 4 4 7 2 1 0 0 7 4 9 1 3 1 I n v e n t o r y a d j u s t m e n t s 1 153 320 9 2 473 189 M i n e s i t e o p e r a t i n g c o s t s 5 1 6 8 5 3 7 9 4 3 8 0 1 0 5 4 7 9 3 2 0 D i v i d e d b y t o n n e s o f o r e m i l l e d 4 5 6 4 2 4 3 2 5 2 5 3 1 6 9 8 8 8 9 4 1 0 0 3 2 0 M i n e s i t e c o s t p e r t o n n e m i l l e d 113 124 82 119 93 H i slo p Mi n e M i n e s i t e c o s t s 5 7 1 1 4 7 8 8 5 8 5 1 1 0 4 9 9 1 1 4 8 0 I n v e n t o r y a d j u s t m e n t s 1 1 0 0 537 62 437 229 M i n e s i t e o p e r a t i n g c o s t s 5 6 1 1 5 3 2 5 5 9 1 3 1 0 9 3 6 1 1 7 0 9 D i v i d e d b y t o n n e s o f o r e m i l l e d 8 8 0 9 3 7 9 7 7 1 9 7 1 8 3 1 6 7 8 6 4 1 9 1 8 4 3 M i n e s i t e c o s t p e r t o n n e m i l l e d 64 67 61 65 61 A m o u n t s in t h o u s a n d s o f C a n a d ia n d o l l a r s Q 2 2 0 1 3 Q 1 2 0 1 3 Q 2 2 0 1 2 Y T D 2 0 1 3 Y T D 2 0 1 2 Go l d s a l e s p e r Fi n a n c i a l R e p o r t s A 3 6 7 2 3 3 8 1 9 0 3 7 0 7 3 7 4 9 1 3 7 1 3 6 9 M i n e s i t e o p e r a t i n g c o s t s p e r Fi n a n c i a l R e p o r t s 1 9 9 9 6 1 8 4 1 1 1 7 8 3 1 3 8 4 0 7 3 5 2 8 2 P r o d u c t i o n r o y a l t i e s p e r Fi n a n c i a l R e p o r t s 3 0 1 2 3 3 7 0 3 0 4 6 6 3 8 2 5 9 6 8 B 2 3 0 0 8 2 1 7 8 1 2 0 8 7 7 4 4 7 8 9 4 1 2 5 0 C a s h m a r g i n f r o m m i n e o p e r a t i o n s A B 1 3 7 1 5 1 6 4 0 9 1 6 1 9 6 3 0 1 2 4 3 0 1 1 9 Br e a k d o w n o f c a s h m a r g i n f r o m m i n e o p e r a t i o n s b y m i n e s H o l t M i n e 9 3 4 1 1 1 8 8 7 8 8 8 6 2 1 2 2 8 1 7 9 4 0 H o l l o w a y M i n e 1 7 9 5 2 3 9 1 3 8 0 5 4 1 8 6 6 2 9 7 H i s l o p M i n e 2 5 7 9 2 1 3 1 3 5 0 5 4 7 1 0 5 8 8 2 1 3 7 1 5 1 6 4 0 9 1 6 1 9 6 3 0 1 2 4 3 0 1 1 9