20 L I QUIDITY AND C APITAL R E S OUR CE S C a p it a l Reso u r ces A t the e n d of Q2 2 013 th e C omp a n y ha d c a s h a n d c a s h e q u iva l e n ts o f 31 5 mil l i on Th e C o mpa n y ha s a c c e s s to a ddit ion a l c a s h r e s our c e s b y wa y of a n un dr a w n US10 0 mil l ion r e vol vi n g c r e dit fa c il ity Durin g the q ua r t e r t he pr ic e of gol d de c l in e d s ig n ifi c a n tl y to a l e ve l whic h im pa c t ed the C om pa n ys c a s h fl ow a n d op e r a ti n g r e s ul ts Durin g th e q ua r t e r t h e C omp a n y r e vis e d its o pe r a tin g a n d c a pi ta l e xp e n ditu r e p r ogr a ms wi th the o b j e c tive to ma i n ta in a s tr on g f in a n c ia l p ositio n s e e I n vest i n g a ct i vi t i es b e l o w The C om pa n y b e l i e ve s tha t it is a b l e to g e n e r a t e n e t c a s h fl ow a t a n a ve r a ge gol d pr ic e of US 1300 pe r ou n c e wi thout a n y s ign ifi c a n t r e d uc tion o r c urta il m e n t of its c urr e n t op e r a ti n g pl a n s The C o mpa n y c o n ti n u e s to m on i tor this r isk a n d wi l l r e vis e its o pe r a tin g pl a n s a c c or din gl y i n or d e r to e n s u r e its n e a r te r m a n d l o n g t e r m c a s h fl ow o b je c t ive s a r e m e t C a sh fl o w SAS g e n e r a t e d c a s h fl ow fr o m op e r a ti on s in Q2 2013 of 70 mil l io n a d e c r e a s e of 68 mil l ion ov e r Q1 2013 pr i ma r il y du e to th e d e c l in e in th e g ol d pr ic e d uri n g the q ua r t e r C a s h fl ow f r om op e r a tio n s de c r e a s e d b y 21 mil l ion w he n c omp a r e d to Q2 2 012 The fol l ow i n g ta b l e hi ghl ight s the ma jor mov e m e n ts N o t e 1 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 i s a n o n GA A P m e a su r e a n d i s n o t n e c e s sa r i ly c o m p a r a b l e t o si m i la r ly t i t le d m e a su r e s o f o t h e r c o m p a n i e s du e t o p o t e n t i a l i n c o n s i s t e n c i e s i n t he m e t ho d o f c a lc ulat i o n s e e p a ge 18 he r e o f f o r a r e c o n c i li a t i o n o f t hi s n o n G A A P m e a su r e A t J un e 30 2013 the C o mpa n ys wo r k in g c a pit a l wa s 1 65 mil l ion a s c omp a r e d to a wo r k in g c a pit a l of 18 2 mil l ion a s a t D e c e m b e r 3 1 2 012 W or k in g c a pit a l de c r e a s e d b y 1 7 mil l io n fr om De c e m b e r 31 2012 p r ima r il y a s a r e s ul t of a n e t de c r e a s e of 4 2 mil l ion i n n on c a s h w or k i n g c a pit a l du e to ma r k to ma r k e t positio n s o f de r iva tiv e in s t r um e n ts of fse t b y th e r e a l ign me n t o f min e op e r a tin g wo r k i n g c a pit a l t o m e e t ou r c ur r e n t m in e pl a n The m a in c omp on e n t o n th e c ha n ge s i n o pe r a tin g wo r k i n g c a pi ta l r e a l ign m e n t wa s the i n c r e a s e i n gol d b ul l io n a n d i n c ir c uit in v e n tor ie s of 19 mil l ion th e r e duc tio n in a c c ount s pa ya b l e a n d oth e r l ia b il iti e s of 34 m il l ion a n d the c ol l e c ti on of 35 m il l io n in t r a de a c c ount s r e c e iva b l e s a t th e e n d of Q 2 2013 Inv es t ing a c t iv it ie s The C o mpa n y in v e s t e d 7 3 mil l ion i n Q2 2013 a t Hol t a n d Hol l ow a y the Hol t M il l a n d a t Ta yl or Th e ta b l e b e l ow outl in e s th e r e v ise d 2013 c a pi ta l e xp e n ditu r e s i n c urr e d du r i n g Y TD 20 13 a n d pl a n n e d for H2 201 3 C as h f lo w f ro m o p e rat i o n s Q 1 2 0 1 3 an d Q 2 2 0 1 2 1 3 7 8 0 9 1 1 3 D e c r e a s e i n 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 1 2 6 9 4 2 4 8 1 I n c r e a s e d e c r e a s e i n n e t c h a n g e i n n o n c a s h w o r k i n g c a p i t a l a n d o t h e r 4 3 3 3 1 5 9 2 N e t d e c r e a s e i n c r e a s e i n e x p l o r a t i o n a n d c o r p o r a t e a d m i n i s t r a t i o n c o s t s 489 1 6 0 4 Fo r e i g n e x c h a n g e g a i n l o s s 3 0 7 307 O t h e r 33 41 6 8 1 2 2 1 4 5 C as h f lo w f ro m o p e rat i o n s Q 2 2 0 1 3 6 9 6 8 6 9 6 8 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 c o m p are d t o Q 1 2 0 1 3 Q 2 2 0 1 3 c o m p are d t o Q 2 2 0 1 2