CAPITAL AND FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2019

Capital and financial risk management

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


	December 31,			December 31,
	2019			2018
Long-term debt and credit facilities	$	1,837.4		$	1,735.0
Current portion of long-term debt and credit facilities		—			—
Total debt	$	1,837.4		$	1,735.0
Common shareholders' equity	$	5,318.5		$	4,506.7
Total debt / total debt and common shareholders' equity ratio		25.7	%		27.8	%
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 dollar	$	(26.3)	$	2.4	$	(2.9)
Brazilian real	$	(91.3)	$	8.3	$	(10.1)
Chilean peso	$	(5.0)	$	0.5	$	(0.6)
Russian rouble	$	33.4	$	(3.0)	$	3.7
Mauritanian ouguiya	$	(68.1)	$	6.2	$	(7.6)
Other(b)	$	7.0	$	(0.6)	$	0.8

(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 Euro, Ghanaian cedi, British pound, Australian dollar and South African rand.

At December 31, 2019, 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 dollar	$	(3.9)	$	4.8
Brazilian real	$	(10.7)	$	13.3
Russian rouble	$	(3.2)	$	6.5

(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.

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	$	9.0	$	(8.9)

(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 risk management


			2020		2021-2024		2025+
	Total		Within 1 year (b)		2 to 5 years		More than 5 years
Long-term debt (a)	$	2,610.3	$	98.5	$	1,402.1	$	1,109.7

(a)

Includes the full face value of the senior notes , drawdowns on the revolving credit facility, and estimated interest.

(b)

Represents interest on the senior notes and revolving credit facility, due within the next 12 months.