summarised statement of cash flows
|Net cash outflow from operating activities||(41.9)||(19.9)|
|Net cash outflow from investing activities||(172.2)||(245.9)|
|Net cash inflow/(outflow) from financing activities||495.3||(6.7)|
|Net increase/(decrease) in cash and cash equivalents||281.2||(272.5)|
|Cash and cash equivalents at the beginning of financial year||66.2||337.6|
|Effects of exchange rate changes on cash and cash equivalents||1.4||1.1|
|Cash and cash equivalents at the end of the financial year||348.8||66.2|
Net Cash Outflow from Operating Activities was US$41.9M in 2010 primarily due to payments to suppliers and employees of US$202.8M relating to the mine operations at LHM and KM and corporate costs, exploration and evaluation project expenditure of US$16.6M and interest payments of US$33M on project finance facilities and convertible bonds. This was partly offset by Paladin sales receipts of US$201.0M and a net insurance recovery for heat exchangers at LHM of US$7.7M that related to damage that occurred in a prior year. Net cash inflow from operating activities before exploration and evaluation expenditure and interest paid totalled US$7.7M (2009: US$24.4M).
Net Cash Outflow from Investing Activities was US$172.2M in 2010 as a result of mine construction at KM, Stage 2 and 3 expansion at LHM and the acquisition of shares in NGM of US$1.8M. The net cash outflow of US$245.9M in 2009 was as a result of mine construction at KM, Stage 2 expansion at LHM, the acquisition of shares in DYL of US$11.2M and third party uranium purchases of US$6.0M.
Net Cash Inflow from Financing Activities of US$495.3M in 2010 is attributable to the US$363.0M net proceeds from the share placement and US$145.0M proceeds from the drawdown of KM project finance facilities which was partly offset by a US$6.6M repayment of project finance facilities for LHM and US$7.2M KM project finance facility establishment costs. The net cash outflow of US$6.7M in 2009 was attributable to US$12.2M repayment of project finance facilities for LHM which has been partly offset by US$5.2M proceeds from the exercise of 2,060,000 unlisted employee options and US$1.1M net proceeds from shares issued to non-controlling interests following the Summit renounceable rights issue.
Net Increase in Cash and Cash Equivalents in 2010 was US$281.2M, as compared to the net decrease in cash over the previous corresponding period in 2009 of US$272.5M. The change is predominantly the result of the net proceeds from the share placement of the US$363.0M, the drawdown of KM project financing facilities of US$145.0M and lower cash outflows from investing activities which has been partly offset by higher cash outflows from operating activities.
Effect of Exchange Rate Changes on cash balances is a gain of US$1.4M for 2010.