CAPITAL AND FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2018

Capital and financial risk management

Schedule of target total debt to total debt and common shareholders' equity ratio


	December 31,			December 31,
	2018			2017
Long-term debt	$	1,735.0		$	1,732.6
Current portion of long-term debt		—			—
Total debt		1,735.0			1,732.6
Common shareholders’ equity		4,506.7			4,583.6
Total debt / total debt and common shareholders’ equity ratio		27.8	%		27.4	%
Company target		0 – 30	%		0 – 30	%

Currency risk

Capital and financial risk management

Schedule of risk management


		10% strengthening in	10% weakening in
		U.S. dollar	U.S. dollar
	Foreign currency net	Effect on earnings before	Effect on earnings before
	working capital	taxes, gain (loss) (a)	taxes, gain (loss) (a)
Canadian dollars	(13.9)	1.3	(1.5)
Brazilian reais	(41.8)	3.8	(4.6)
Chilean pesos	(32.1)	2.9	(3.6)
Russian roubles	22.2	(2.0)	2.5
Mauritanian ouguiya	(27.6)	2.5	(3.1)
Other (b)	(2.0)	0.2	(0.2)

(a)

As described in Note 3(ii), the Company translates its monetary assets and liabilities into U.S. dollars at the rates of exchange at the consolidated balance sheet dates. Gains and losses on translation of foreign currencies are included in earnings.

(b)

Includes Euros, Ghanaian cedi, British pounds, Australian dollars and South African rand.

At December 31, 2018, with other variables unchanged, the following represents the effect of the Company’s foreign currency hedging contracts on OCI before taxes from a 10% change in the exchange rate of the U.S. dollar against the Canadian dollar, Brazilian real and Russian rouble.


	10% strengthening in		10% weakening in
	U.S. dollar		U.S. dollar
	Effect on OCI before		Effect on OCI before
	taxes, gain (loss) (a)		taxes, gain (loss) (a)
Canadian dollars	$	(6.1)	$	7.6
Brazilian reais	$	(18.9)	$	21.8
Russian roubles	$	(4.0)	$	3.5

(a)

Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which may be to earnings or property, plant and equipment.

Energy price risk

Capital and financial risk management

Schedule of risk management


	10% increase in		10% decrease in
	price		price
	Effect on OCI before		Effect on OCI before
	taxes, gain (loss) (a)		taxes, gain (loss) (a)
WTI oil	$	7.5	$	(7.5)

(a)

Upon maturity of these contracts, the amounts in OCI before taxes will reverse against hedged items that the contracts relate to, which will be to earnings.

Liquidity risk

Capital and financial risk management

Schedule of contractual cash flow requirements for financial liabilities


			2019		2020, 2021		2022, 2023		2024+
	Total		Within 1 year (b)		2 to 3 years		4 to 5 years		More than 5 years
Long-term debt (a)	$	2,588.4	$	95.1	$	690.1	$	138.9	$	1,664.3

(a)

Includes long-term debt, interest and the full face value of the senior notes.

(b)

Represents interest on long-term debt, due within the next 12 months.