10 7 Asse t r et i r em e nt o bl ig a t io ns 8 F ina nc ia l r isk m a n a gem en t T h e C om pa n y s fi n a n c ia l r is k ma n a ge m e n t s t r a te gy foc u s e s on p r e s e r v a ti on o f c a pita l a n d pr ot e c ti n g c u r r e n t a n d fu tu r e C ompa n y a s s e ts a n d c a s h fl ow s b y r e du c in g e x pos u r e t o r is k s pos e d b y u n c e r ta in ti e s a n d v ol a til it ie s of th e fi n a n c ia l ma r k e ts C r e di t r is k C r e di t r is k is th e r is k th a t a th ir d pa r ty mi gh t fa il to fu l fil l its pe r fo r ma n c e ob l iga ti on s u n d e r th e te r ms of a fin a n c ia l de r iv a ti v e F or c a s h c a s h e q u iv a l e n ts a n d a c c ou n ts r e c e iv a b l e c r e dit r is k is r e p r e s e n te d b y th e c a r r y in g a mou n t o n th e b a l a n c e s h e e t T h e C ompa n y l imits c r e dit r is k b y e n t e r in g i n to tr a n s a c tion s w ith h igh c r e dit q u a l ity c ou n te r pa r tie s a n d mo n it or i n g th e fin a n c ia l c on ditio n of c ou n t e r pa r ti e s T h e C ompa n y c l os e l y mon i tor s its fin a n c ia l a s s e ts a n d doe s n ot h a v e a n y s ign i fic a n t c o n c e n tr a ti o n of c r e dit r is k T h e C ompa n y s e l l s its gol d pr o du c tion to in t e r n a tio n a l fin a n c ia l in s ti tu tio n s or b u l l ion de a l e r s w i th s tr o n g c r e d it r a ti n gs o r fi n a n c ia l b a c k in gs T h e h is tor ic a l l e v e l of c u s tome r de fa u l ts is n e gl igi b l e A s a t J u n e 3 0 2 0 1 3 th e C ompa n y s e ttl e d a l l tr a de r e c e iv a b l e s A t J u n e 3 0 2 0 1 3 c a s h w a s i n v e s t e d in in t e r e s t b e a r i n g d e p os its w ith fi n a n c ia l in s titu ti on s w ith s tr o n g c r e d it r a ti n gs I n te r e s t r a t e r is k I n te r e s t r a te r is k is th e r is k th a t th e fa ir v a l u e s a n d fu tu r e c a s h fl ow s of th e C ompa n y w il l fl u c tu a te b e c a u s e o f c h a n ge s i n ma r k e t in te r e s t r a te s T h e C o mp a n y is e xpos e d t o in t e r e s t r a te r is k on its ou ts ta n di n g b o r r o w i n gs c a s h a n d c a s h e q u iv a l e n ts a n d mon e y ma r k e t i n v e s t me n ts A t J u n e 3 0 2 0 1 3 S A S te r m c r e di t fa c il ity is s u b je c t t o a fl oa tin g in te r e s t r a te T h e C ompa n y mon it or s its e xp os u r e t o in t e r e s t r a t e s a n d is c omfor ta b l e w i th its e x p os u r e s giv e n th e r e l a tiv e l y l ow s h or t t e r m in t e r e s t r a te s T h e w e i gh te d a v e r a ge in t e r e s t r a t e pa i d b y th e C om pa n y du r i n g th e th r e e a n d s i x mon th s e n de d J u n e 3 0 2 0 1 3 o n i ts t e r m c r e dit fa c il ity w a s 3 5 2 0 1 2 3 8 pe r a n n u m T h e a v e r a ge in t e r e s t r a t e e a r n e d p e r a n n u m b y th e C ompa n y du r in g th e th r e e m on th s e n d e d J u n e 3 0 2 0 1 3 o n its c a s h a n d c a s h e q u iv a l e n ts w a s 1 0 2 0 1 2 0 9 A 1 0 in c r e a s e or d e c r e a s e i n th e in t e r e s t e a r n e d f r om fin a n c i a l in s titu tio n s on de pos its h e l d w ou l d r e s u l t in a n omi n a l in c r e a s e or de c r e a s e i n th e C ompa n y s p r e ta x n e t e a r n in gs C u r r e n c y r is k C u r r e n c y e xc h a n g e r a te s a r e s u b j e c t t o fl u c tu a tio n A s t h e p r ic e of gol d is p r ima r il y e s ta b l is h e d i n U n it e d S ta te s dol l a r s th e C ompa n y is e xpos e d to c u r r e n c y r is k to th e e xte n t of a fl u c tu a tion in th e for e ign e xc h a n g e r a t e s b e t w e e n th e C a n a dia n a n d U n ite d S ta te s dol l a r s U n d e r th e C ompa n y s F or e ig n E xc h a n g e R is k M a n a ge m e n t Pol ic y a ppr ov e d b y th e B oa r d of D ir e c tor s th e C ompa n y ma y S i x m o n t h s e n d e d J u n e 3 0 2 0 1 3 Y e a r e n d e d D e c e m b e r 3 1 2 0 1 2 O p e n i n g b a l a n c e a s a t Ja n u a r y 1 1 1 7 4 3 1 0 6 7 8 A c c r e t i o n e x p e n s e 3 0 3 5 4 6 R e c l a m a t i o n c o s t s i n c u r r e d a t A q u a r i u s P r o j e c t 3 2 6 C h a n g e s i n e s t i m a t e s 7 7 8 D i v e s t i t u r e o f n o n c o r e a s s e t s 2 5 9 B a l a n c e e n d o f p e r i o d 1 1 7 2 0 1 1 7 4 3