Note 17 – Segment reporting

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

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


	For the three months ended June 30,
	2020						2019
	Mining		Energy		Total		Mining		Energy		Total
Revenue	$	180.8	$	14.6	$	195.4	$	142.9	$	27.6	$	170.5

Income/(expenses)
Costs of sales	$	27.0	$	1.0	$	28.0	$	25.6	$	1.8	$	27.4
Depletion and depreciation		42.1		9.8		51.9		46.7		11.4		58.1
Segment gross profit	$	111.7	$	3.8	$	115.5	$	70.6	$	14.4	$	85.0


	For the six months ended June 30,
	2020						2019
	Mining		Energy		Total		Mining		Energy		Total
Revenue	$	394.8	$	41.1	$	435.9	$	301.9	$	48.4	$	350.3

Income/(expenses)
Costs of sales	$	68.5	$	3.1	$	71.6	$	56.6	$	3.2	$	59.8
Depletion and depreciation		94.0		21.5		115.5		97.3		20.8		118.1
Segment gross profit	$	232.3	$	16.5	$	248.8	$	148.0	$	24.4	$	172.4

For the six months ended June 30, 2020, there were $1.2 million (H1/2019 - $1.7 million) of depreciation expenses on corporate assets.

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


		For the three months ended				For the six months ended
		June 30,				June 30,
		2020		2019		2020		2019
Total segment gross profit	$	115.5	$	85.0	$	248.8	$	172.4

Other operating (income)/expenses
Impairment of royalty, stream and working interests	$	—	$	—	$	271.7	$	—
General and administrative expenses		11.7		5.6		17.9		12.5
Gain on sale of bullion		(2.4)		(0.4)		(4.4)		(0.8)
Depreciation		0.4		0.8		1.2		1.7
Foreign exchange (gain) loss and other (income) expenses		0.1		—		0.2		—
Income before finance items and income taxes	$	105.7	$	79.0	$	(37.8)	$	159.0

Finance items
Finance income	$	1.0	$	1.2	$	1.9	$	1.9
Finance expenses		(0.8)		(2.5)		(1.9)		(5.0)
Net income before income taxes	$	105.9	$	77.7	$	(37.8)	$	155.9