11 unchanged sentences
The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold, silver, zinc and lead.
+Added: Decreases in the market price of gold, silver, zinc and lead can also significantly affect the value of our metal inventory, stockpiles and leach pads, and it may be necessary to record a write-down to the net realizable value, as well as significantly impact our carrying value of long-lived assets.
+Added: Net realizable value represents the estimated future sales price based on short-term and long-term metals prices, less estimated costs to complete production and bring the product to sale.
+Added: The primary factors that influence the need to record write-downs of our stockpiles, leach pads and product inventory include short-term and long-term metals prices and costs for production inputs such as labor, fuel and energy, materials and supplies as well as realized ore grades and recovery rates.
+Added: The significant assumptions in determining the stockpile, leach pad and metal inventory adjustments at September 30, 2022 included production cost and capitalized expenditure assumptions unique to each operation, a short-term and long-term gold price of $1,729 and $1,700 per ounce, respectively, and a short-term and long-term silver price of $19.23 and $22.00 per ounce, respectively.
+Added: The net realizable value measurement involves the use of estimates and assumptions unique to each mining operation regarding current and future operating and capital costs, metal recoveries, production levels, commodity prices, proven and probable reserve quantities, engineering data and other factors.
+Added: A high degree of judgment is involved in determining such assumptions and estimates and no assurance can be given that actual results will not differ significantly from those estimates and assumptions.
To mitigate the risks associated with metal price fluctuations, the Company may enter into option contracts to hedge future production.
−Removed: The Company had outstanding forward contracts on 221,000 ounces of gold at June 30, 2022 that settle monthly through December 2023.
+Added: The Company had outstanding forward contracts on 167,000 ounces of gold at September 30, 2022 that settle monthly through December 2023.
The Company is targeting to hedge up to 70% of expected gold production through 2022, 50% of expected gold production for the first half of 2023 and 25% of expected gold production for the second half of 2023 in order to protect cash flow during a period of elevated capital expenditures, and may in the future layer on additional hedges as circumstances warrant.
5 unchanged sentences
For additional information, please see the section titled “Risk Factors” in the 2021 10-K and part II, Item 1A of this report.
−Removed: At June 30, 2022, the fair value of the gold forward contracts was an asset of $29.3 million.
−Removed: For the six months ended June 30, 2022 the Company recognized a gain of $3.1 million related to expired contracts in Revenue and the remaining outstanding forwards contracts were included in accumulated other comprehensive income (loss) .
−Removed: A 10% increase and decrease in the price of gold at June 30, 2022 would result in a net realized loss and gain of $7.2 million and $74.8 million, respectively.
+Added: At September 30, 2022, the fair value of the gold forward contracts was an asset of $47.1 million.
+Added: For the nine months ended September 30, 2022 the Company recognized a gain of $14.4 million related to expired contracts in Revenue and the remaining outstanding forwards contracts were included in accumulated other comprehensive income (loss) .
+Added: A 10% increase and decrease in the price of gold at September 30, 2022 would result in a net realized loss and gain of nil and $80.4 million, respectively.
The closing price of gold was $1,672 per ounce.
−Removed: As of August 2, 2022, the closing price of gold was $1,780 per ounce.
+Added: As of November 8, 2022, the closing price of gold was $1,679 per ounce.
Provisional Metal Sales
4 unchanged sentences
The mark-to-market gains and losses are recorded in earnings.
−Removed: At June 30, 2022, the Company had outstanding provisionally priced sales of 10,842 ounces of gold at an average price of $1,846.
−Removed: Changes in gold prices resulted in provisional pricing mark-to-market gain of $0.01 million during the six months ended June 30, 2022.
+Added: At September 30, 2022, the Company had outstanding provisionally priced sales of 18,789 ounces of gold at an average price of $1,744.
+Added: Changes in gold prices resulted in provisional pricing mark-to-market gain of $0.75 million during the nine months ended September 30, 2022.
A 10% change in realized gold prices would cause revenue to vary by $3.3 million.
8 unchanged sentences
In 2020, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
−Removed: The Company had no outstanding foreign currency forward exchange contracts at June 30, 2022.
+Added: The Company had no outstanding foreign currency forward exchange contracts at September 30, 2022.
Interest Rates
6 unchanged sentences
Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates.
−Removed: The Company had no outstanding interest rate swaps at June 30, 2022.
+Added: The Company had no outstanding interest rate swaps at September 30, 2022.
Investment Risk
1 unchanged sentence
We are exposed to changes in the fair value of our investments in equity securities.
−Removed: For the six months ended June 30, 2022, the Company recognized unrealized losses of $49.1 million in Fair value adjustments, net due to decreases in the stock price of those equity securities.
−Removed: At June 30, 2022, the fair value of the equity securities was $99.1 million.
+Added: For the nine months ended September 30, 2022, the Company recognized unrealized losses of $44.5 million in Fair value adjustments, net due to decreases in the stock price of those equity securities.
+Added: At September 30, 2022, the fair value of the equity securities was $45.5 million.
A 10% change in realized equity prices would result in an unrealized gain or loss of $4.6 million.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.