Greg Fraser

Greg Fraser asked for an explanation of the higher-than-expected cash balance at year-end and details on additional levers to lower cash costs moving forward.

Answer

Jamey Mock, CFO, explained that the higher year-end cash balance was due to beating original cash cost guidance by $1.2 billion, a $600 million initial draw from the credit facility, $100 million less in capital expenditures, and strong working capital performance (receivables at $180 million, inventory flat at $270 million, payables at $300 million, net working capital of $150 million).

Greg Fraser asked for an explanation regarding the higher-than-expected cash balance at year-end and what additional levers exist to lower cash costs moving forward.

Answer

Jamey Mock, CFO, explained the higher cash balance by detailing how actual cash costs were $1.2 billion lower than original guidance, plus a $600 million credit facility draw, $100 million less in capital expenditures, and $200 million from strong working capital performance.