Methodology Glossary This report is based on a review of the WC performance • DSO (days sales outstanding): year-end trade of 80 of the largest mining companies (by sales) engaged receivables net of provisions, including value-added in the mining and processing of 10 different minerals tax (VAT) and adding back securitized receivables, across the world (aluminium, coal, copper, gold, iron divided by full-year pro forma sales and multiplied by ore, nickel, platinum, potash, silver and zinc). It should 365 (expressed as a number of days of sales, unless Z]fgl]\l`Yl\an]jkaÕ]\[gehYfa]k`Yn]Z]]fYddg[Yl]\ stated otherwise) to the commodity group representing their most • DIO (days inventory outstanding): year-end current important revenue. inventories net of provisions, divided by full-year pro Steel will be covered in a separate study, and commodity forma sales and multiplied by 365 (expressed as a trading companies have been excluded from our review number of days of sales, unless stated otherwise). Note Z][Ymk]g^l`]\a^Õ[mdlqg^Ykk]kkaf_l`]ajÉljm]Ê that some producers of copper, gold and silver also hold performance given the intertwined nature of their trading long-term inventories, including mill and lead stockpiles and mining and metals activities, and differences in and leach pads. ÕfYf[aYdj]hgjlaf_Yf\\ak[dgkmj]k& • DPO (days payable outstanding): year-end trade The insights are derived from an analysis of publicly payables, including VAT and adding back trade-accrued available annual sources of information, with the number of expenses (including accrued capital expenditure and companies shown next to each commodity group. royalties), divided by full-year pro forma sales and • Aluminium (6) multiplied by 365 (expressed as a number of days of • Coal (12) sales, unless stated otherwise). Note that for a number of UK plc companies, accruals reported separately in • Copper (16) accruals and deferred income have been added back to • Gold (16) trade payables. • Iron ore (9) • C2C (cash-to-cash): equals DSO, plus DIO, minus DPO • Potash (5) (expressed as a number of days of sales, unless stated • Nickel (3) otherwise) • Platinum (4) • Pro forma sales: reported sales net of VAT and adjusted • Silver (6) for acquisitions and disposals when this information is • Zinc (3) available O`ad]l`]Õf\af_kYj]ZYk]\gfhmZda[dqYnYadYZd]\YlY$l`] performance of individual companies is not discussed or disclosed. Any broader industry commentary is based on general sector and commodity group observations and not on views of any single organization. Cash in the ground: working capital management in the mining sector 12