We’re growing and profitable, and are in a very strong financial position.

Growth

We have been growing steadily since 2000. With our acquisition of Las Cruces in 2005 and increased production at Çayeli, we expect copper production to nearly double by 2009. If we proceed with Petaquilla, production could nearly double again by 2011.

 

Long-term value

We measure value creation by the performance of our share price over the long term relative to our peers. On this basis, since 2000 we have created $1.3 billion more in value compared to our benchmark, the S&P/TSX Diversified Metals and Mining Index.

Financial strength

Our strategy is to ensure that we have sufficient liquidity in the form of cash and committed credit facilities to finance our operating requirements and identified growth projects. In addition, our target for assessing our sustainable debt levels is to ensure that our operations, at the low point in the metal price cycle, can provide adequate debt service coverage.

High metal prices over the past two years has allowed us to strengthen our balance sheet while spending significant capital to support our growth strategy.

Key financial measures
We use the following key financial measures to assess our financial condition and liquidity:

	December 31, 2007	December 31, 2006
Current Ratio	5.6 to 1	5.1 to 1
Long-term debt to total capitalization	18%	10 %
Net working captial balance	$855 million	$666 million
Cash balance	$841 million	$640 million

Highlights

The table below shows our financial and operating highlights for the three and nine months ended December 31, 2007.

 

The table below shows our financial and operating highlights for each of the last three years.

Gross sales

Çayeli
In 2007, 63 percent of Çayeli’s revenue was from copper and 37 percent was from zinc.

Pyhäsalmi
In 2007, 48 percent of Pyhäsalmi’s revenue was from zinc, 41 percent was from copper and 11 percent was from pyrite.

Troilus
In 2007, 80 percent of Troilus’s revenue was from gold and 20 percent was from copper.

Ok Tedi
In 2007, 79 percent of Ok Tedi’s revenue was from copper and 21 percent was from gold.