NYSE: AEM 46.01
+0.44 +0.97%
Volume: 2,030,478
April 21, 2017
TSX: AEM 62.13
+0.78 +1.27%
Volume: 598,598
April 21, 2017
Gold: 1,285.25
+2.65 +0.21%
Volume:
April 21, 2017

Adjusted net income

Adjusted net income is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. This measure is calculated by adjusting net income (loss) as recorded in the consolidated statements of income (loss) and comprehensive income (loss) for non-recurring, unusual and other items. The Company uses adjusted net income to evaluate the underlying operating performance of the Company and to assist with the planning and forecasting of future operating results. The Company believes that adjusted net income is a useful measure of performance because items such as foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses, stock option expense and unrealized gains and losses on financial instruments do not reflect the underlying operating performance of the Company and may not be indicative of future operating results.

All-in sustaining costs per ounce of gold produced on a by-product and co-product basis

All-in-sustaining costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. All-in-sustaining costs per ounce of gold produced is used to show the full cost of gold production from current operations. The Company calculates all-in sustaining costs per ounce of gold produced as the aggregate of total cash costs per ounce on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses, divided by the number of ounces of gold produced. All-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as all-in sustaining costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The Company's methodology for calculating all-in sustaining costs per ounce may not be similar to the methodology used by other producers that disclose all-in sustaining costs per ounce. The Company may change the methodology it uses to calculate all-in sustaining costs per ounce in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of all-in sustaining costs per ounce of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS.

Balance sheet

Financial report showing the status of a company's assets, liabilities and owners' equity on a given date. Also called the statement of financial position.

Cash flow

Total changes that affect the cash account during an accounting period.

Minesite costs per tonne

Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. This measure is used to calculate the mine-level expenditures of processing a tonne of ore. Minesite costs per tonne is calculated by adjusting production costs as shown in the consolidated statements of income and comprehensive income for unsold concentrate inventory production costs and other adjustments and then dividing by tonnes of ore processed.As the total cash costs per ounce of gold produced measure can be affected by fluctuations in by-product metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS.

Current assets

Cash and cash equivalents and other assets a company can convert to cash within one year. Examples are cash, accounts receivable and inventories of products to sell.

Current liabilities

Obligations a company has to creditors, suppliers, tax authorities, and others, payable within one year.

Debt-to-equity ratio

Usually, long-term debt divided by shareholder's equity.

Depreciation

An allowance made for loss in value of a fixed asset because of wear or age. The cost of the fixed asset is allocated over its estimated useful life, using the straight-line method. Depreciation is listed in the assets category on the balance sheet.

Dividends

Cash payments from a company that are distributed to shareholders in an equal amount for each share owned.

Goodwill

An intangible asset that adds value to a company's worth, for example, the reputation of its products, services or personnel. Goodwill is charged to earnings on a straight-line basis over the periods estimated to be benefited, generally not exceeding five years.

Income statement (profit and loss statement, statement of operations)

Summary of the revenues, costs and expenses of a company during an accounting period.

Long-term debt

Debt a company will repay after one year. Listed in the liabilities category on the balance sheet.

Net debt

Net debt is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Net debt shows the Company’s overall indebtedness by subtracting the total value of its cash, cash equivalents and other liquid assets from the total value of the company's liabilities. All the information necessary to determine the company's net debt can be found on the balance sheet.

Net free cash flow

Represents the cash that the Company is able to generate after laying out the money required to maintain or expand its asset, pay interest on its debt and pay dividends to its shareholders.

Net income

A company's total revenue less total expenses, showing what a company earned (or lost, called net loss) for a set period.

Net income per share

Portion of a company's net income allocated to each outstanding common share.

Price earnings ratio (P/E)

Price of a stock divided by its earnings share. The P/E ratio may either use the reported earnings from the latest year (called a trailing P/E) or employ an analyst's forecast of next year's earnings (called a forward P/E).

Return on capital

Latest twelve months' net income divided by the most recent quarter invested capital (long-term debt plus common stock equity plus preferred equity).

Return on equity

Amount, expressed as a percentage, earned on a company's common stock investment for a given period. It is calculated by dividing common stock equity (net worth) at the beginning of the accounting period into net income for the period after preferred stock dividends but before common stock dividends.

Share

Unit of equity ownership in a corporation. The number of shares a corporation is authorized to issue is detailed in its constating documents.

Shares outstanding

Common shares issued by the Company, shown on the balance sheets under the heading "Equity – Common Shares – Outstanding".

Statement of cash flows

A financial statement that reports the flow of cash in and out of a company for a set period. It reports the operating, investing and financing activities of the company.

Statement of income

A financial statement that reports the results of a company's business operations (revenue and expenses) for a set period.

Shareholders’ equity

Part of a company's assets that belongs to the shareholders. It is the amount that would remain if a company sold all its assets and paid off all its liabilities. Listed as stockholders' equity on the statement of financial position and on the statement of stockholders' equity.

Total cash costs per ounce of gold produced on a by-product basis and co-product basis

Total cash costs per ounce is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made.Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Company's mining operations. The Company also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows the Company to assess a mine's cash-generating capabilities at various gold prices.Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS.