Financial Results highlights
Net revenue of $469.1 million (2014: $493.0 million)
Adjusted EBITDA of $138.8 million (2014: $135.6 million)
Earnings per share of $(0.14) (2014: $(0.13))
Cash balance of $84.0 million as at 31 December 2015 (31 December 2014: $116.0 million)
Net debt of $350.5 million as at 31 December 2015 (30 June 2015: $455.6 million)
Net debt/EBITDA of 2.5x as at 31 December 2015 (30 June 2015: 5.8x)
Non-cash post tax impairment charges of $170.6 million
Strong 2015 operational delivery
2015 All per silver equivalent ounce from operations reduced by 26% to $12.9 exceeding guidance
Inmaculada AISC per silver equivalent ounce significantly below guidance at $7.3
Full year production of 27.0 million attributable silver equivalent ounces exceeding guidance
Inmaculada mine produced 8.3 million silver equivalent ounces exceeding guidance
Improved financial position
$100 million equity rights issue completed
$105 million of debt repaid in Q4
Argentina macroeconomic and tax reforms already significantly improving San Jose cash flows
o Removal of export tax on dore and concentrate confirmed
o Ongoing devaluation of Argentine peso reducing operating costs
Cashflow further protected by additional 2016 precious metal hedges:
o 15,000 ounces of gold at $1,244 per ounce
o Zero cost collar for 3.0 million ounces of silver with a floor of $14.0 per ounce and a cap of $17.6 per ounce
o 55% of total 2016 attributable production target now hedged
2016 Outlook
Record attributable production target of 32.0 million silver equivalent ounces
AISC now expected to be $12.0-12.5 per silver equivalent ounce (previous guidance of $12-13 per ounce)
Inmaculada AISC expected to be $9-10 per silver equivalent ounce
Total sustaining and development capital expenditure expected to be approximately $100 million including $10 million to develop Pablo vein
