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ANNUAL REPORT 2010

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Skip Navigation LinksManagement Discussion and Analysis > Financial Review > Summarised Statement of Cash Flows

summarised statement of cash flows

YEAR ENDED 30 JUNE
2010
US$M
2009
US$M
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 activities495.3(6.7)
Net increase/(decrease) in cash and cash equivalents281.2(272.5)
Cash and cash equivalents at the beginning of financial year66.2337.6
Effects of exchange rate changes on cash and cash equivalents1.41.1
Cash and cash equivalents at the end of the financial year348.866.2

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.