Note 22 – Segment Reporting

The chief operating decision-maker organizes and manages the business under two operating segment, consisting of royalty, stream and working interests in the mining and energy sectors.

The Company’s reportable segments for purposes of assessing performance are presented as follows:


					Total
					segment
As at December 31, 2018	Mining		Energy		gross profit
Revenue	$	567.1	$	86.1	$	653.2

Income/(expenses)
Costs of sales	$	112.3	$	5.9	$	118.2
Depletion and depreciation		206.6		37.3		243.9
Segment gross profit	$	248.2	$	42.9	$	291.1


					Total
					segment
As at December 31, 2017	Mining		Energy		gross profit
Revenue	$	628.0	$	47.0	$	675.0

Income/(expenses)
Costs of sales	$	137.4	$	4.6	$	142.0
Depletion and depreciation		246.3		22.6		268.9
Segment gross profit	$	244.3	$	19.8	$	264.1

A reconciliation of total segment gross profit to the consolidated net income before income taxes is presented below:


		2018		2017
Total segment gross profit	$	291.1	$	264.1

Other operating (income)/expenses
General and administrative expenses	$	22.6	$	24.9
Impairment of royalty, streams and working interests		76.0		-
Gain on sale of bullion		(0.1)		(0.3)
Depreciation		3.8		4.1
Foreign exchange (gain) and other income (expenses)		(1.8)		(1.1)
Realized gain on investments		-		(2.0)
Impairment of investments		-		4.5
Income before finance items and income taxes	$	190.6	$	234.0

Finance items
Finance income	$	3.1	$	5.4
Finance expenses		(4.6)		(3.4)
Net income before income taxes	$	189.1	$	236.0

Revenues earned during the years ended December 31, 2018 and 2017 are presented by geographic area based on the location of the mining operations giving rise to the royalty, stream or working interest:


	2018		2017
Latin America:
Peru	$	148.6		$	153.1
Chile		70.5			105.2
Other		49.2			67.7
United States		137.2			100.2
Canada		122.6			125.5
Rest of World		125.1			123.3
	$	653.2		$	675.0

For the year ended December 31, 2018, two interests generated revenue totaling $97.5 million and $70.5 million, (2017 – two interests generated revenue totaling $90.2 million and $105.2 million), comprising 14.9% and 10.8%, respectively (2017 – 13.4% and 15.6%, respectively) of revenue.

Royalty, stream and working interests as at December 31, 2018 and 2017 are presented by geographic area based on the location of the mining operations giving rise to the royalty, stream or working interest.


		2018		2017
Latin America:
Panama	$	1,364.9	$	734.4
Peru		886.2		953.2
Chile		504.0		533.4
Other		52.6		59.0
United States		931.1		622.5
Canada		503.9		666.7
Rest of World		312.9		370.0
	$	4,555.6	$	3,939.2

Investments of $169.7 million (2017 - $203.1 million) are held in Canada. Energy well equipment, included in other non-current assets, of $10.2 million (2017 - $12.7 million) is located in Canada.