Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise
noted)
TORONTO, April 28, 2016 /CNW/ - Agnico Eagle
Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") today reported quarterly net income of $27.8 million, or $0.13 per share, for the first quarter of
2016. This result includes unrealized gains on financial
instruments of $9.6 million
($0.04 per share), non-cash foreign
currency translation gains on deferred tax liabilities of
$8.0 million ($0.04 per share), non-cash foreign currency
translation losses of $6.8 million
($0.03 per share), non-cash stock
option expense of $5.9 million
($0.03 per share), non-recurring
losses of $1.9 million ($0.01 per share) and various mark-to-market and
other adjustment losses of $0.9
million (nil per share). Excluding these items would
result in adjusted net income of $25.7
million or $0.12 per share for
the first quarter of 2016. In the first quarter of 2015, the
Company reported net income of $28.7
million or $0.13 per
share.
First quarter 2016 cash provided by operating activities was
$145.7 million ($167.5 million before changes in non-cash
components of working capital). This compares to
cash provided by operating activities of $143.5 million in the first quarter of 2015
($176.8 million before changes in
non-cash components of working capital). The decrease in cash
provided by operating activities before changes in working capital
during the current period was largely due to higher exploration and
corporate development expenditures (up 70%, period over period)
which were partially offset by higher sales volumes.
"The year is off to a good start with a more constructive gold
price environment and continued strong operating performance from
all of our mines. As a result of the strong operating
results, we now expect to meet the top end of our production
guidance for 2016," said Sean Boyd,
Agnico Eagle's Chief Executive Officer. "At current margins,
Agnico Eagle is generating sufficient cash flow to support its
expanded exploration and development activities and potentially pay
down additional debt," added Mr. Boyd.
First Quarter 2016 highlights include:
- Quarterly gold production – Payable gold
production1 in the first quarter of 2016
was 411,336 ounces of gold at total cash
costs2 per ounce on a by-product basis of
$573 and all-in sustaining costs per
ounce3 ("AISC") on a by-product basis of
$797
- Strong operational performance at Mexican
operations - In the first quarter of 2016, payable gold
production was 87,899 ounces at the Company's Mexican mines.
Silver production was a new quarterly record of 752,000
ounces. Total cash costs per ounce of gold on a by-product
basis averaged $364
- 2016 production now expected to reach high end of the
guidance range – Production for 2016 is now expected to
meet the high end of the guidance range of approximately 1.525 to
1.565 million ounces of gold with total cash costs per ounce on a
by-product basis of between $590 to
$630 and AISC of approximately $850
to $890 per ounce
- Continued strong operating performance enhances
financial flexibility - In the first quarter of 2016,
$55 million was repaid under the
Company's credit facility and net debt was reduced by approximately
$89 million to $923 million at March
31, 2016. For the sixth consecutive quarter, the
Company has reduced net debt
- Amaruq Project, Nunavut – Further drilling refines the
geometry of the Whale Tail Ore Shoot and IVR deposit –
Drilling resumed in January and results show that the Whale Tail
Ore shoot is larger in the central area than previously interpreted
and confirms that the IVR deposit extends to the East and to a
depth of 230 metres
- Drilling at Barsele, in Sweden, extends the mineralization at depth
and suggests the potential for a Goldex type deposit –
Highlights include: 2.01 grams per tonne ("g/t") gold (capped) over
an estimated true width of 84.0 metres at a depth of approximately
310 metres in the Skirasen zone
- A quarterly dividend of $0.08 per share was declared
________________________________
|
1 Payable production of a mineral means the
quantity of mineral produced during a period contained in products
that are sold by the Company whether such products are shipped
during the period or held as inventory at the end of the
period.
|
2 Total cash costs per ounce is a Non-GAAP
measure. For a reconciliation to production costs, see
"Reconciliation of Non-GAAP Financial Performance Measures" below.
Total cash costs per ounce of gold produced is presented on both a
by-product basis (deducting by-product metal revenues from
production costs) and co-product basis (before by-product metal
revenues). Total cash costs per ounce of gold produced on a
by-product basis is calculated by adjusting production costs as
recorded in the consolidated statements of income (loss) for
by-product revenues, unsold concentrate inventory production costs,
smelting, refining and marketing charges and other adjustments, and
then dividing by the number of ounces of gold produced. Total cash
costs per ounce of gold produced on a co-product basis is
calculated in the same manner as total cash costs per ounce of gold
produced on a by-product basis except that no adjustment for
by-product metal revenues is made. See "Note Regarding Certain
Measures of Performance". For information about the Company's total
cash costs per ounce on a co-product basis please see
"Reconciliation of Non-GAAP Performance
Measures".
|
3 All-in-sustaining costs per ounce is a
Non-GAAP measure and is used to show the full cost of gold
production from current operations. For a reconciliation to
production costs, see "Reconciliation of Non-GAAP Financial
Performance Measures below. The Company calculates all-in
sustaining costs per ounce of gold produced as the aggregate of
total cash costs per ounce on a by-product basis, sustaining
capital expenditures (including capitalized exploration), general
and administrative expenses (including stock option expense) and
reclamation expenses divided by the amount of gold produced. All-in
sustaining costs per ounce of gold produced on a co-product basis
is calculated in the same manner as all-in sustaining costs per
ounce of gold produced on a by-product basis except that no
adjustment for by-product metal revenues is made. For information
about the Company's AISC on a co-product basis please see
"Reconciliation of Non-GAAP Performance Measures". The Company's
methodology for calculating all-in sustaining costs per ounce may
not be similar to the methodology used by other producers that
disclose all-in sustaining costs per ounce. See "Note Regarding
Certain Measures of Performance". The Company may change the
methodology it uses to calculate all-in sustaining costs per ounce
in the future, including in response to the adoption of formal
industry guidance regarding this measure by the World Gold
Council.
|
First Quarter Financial and Production Highlights -
Higher Gold Production and Lower Production Costs
In the first quarter of 2016, strong operational performance
continued at the Company's mines, which led to payable gold
production of 411,336 ounces compared to 404,210 ounces in the
first quarter of 2015. The higher level of production in the
2016 period was primarily due to higher grades and better
recoveries at LaRonde, increased throughput at Goldex and Kittila
and higher grades at Canadian Malartic. A detailed
description of the production and cost performance of each mine is
set out below.
Total cash costs per ounce on a by-product basis for the first
quarter of 2016 were lower at $573
compared to $588 per ounce for the
first quarter 2015. Total cash costs per ounce on a
by-product basis in the first quarter of 2016 were positively
affected by higher production levels at LaRonde, Goldex, Canadian
Malartic and La India compared to the first quarter of 2015, as
well as weaker local currencies (the Canadian dollar was 9% lower
and the Mexican peso was 17% lower when compared to the first
quarter of 2015).
AISC for the first quarter of 2016 were $797 per ounce on a by-product basis compared to
$804 in the first quarter of
2015. The lower AISC is primarily due to lower total cash
costs per ounce on a by-product basis compared to the first quarter
of 2015.
Cash Position Remains Strong and Debt Levels
Reduced
Cash and cash equivalents and short term investments increased
to $168.0 million at March 31, 2016 from the December 31, 2015 balance of $131.6 million. The outstanding balance on
the Company's $1.2 billion credit
facility was reduced from $265
million at December 31, 2015
to $210 million at March 31, 2016, resulting in current availability
under the Company's credit lines of approximately $990 million, not including the $300 million accordion facility.
Total capital expenditures (including sustaining) made by the
Company in the first quarter of 2016 were $100.7 million, including $16.0 million at Pinos
Altos, $15.2 million at
Goldex, $15.1 million at Meliadine,
$14.3 million at LaRonde,
$14.1 million at Kittila,
$11.5 million at Meadowbank,
$10.5 million at Canadian Malartic,
$1.7 million at La India and
$1.3 million at Creston Mascota.
Sustaining capital expenditures made by the Company in the first
quarter of 2016 were $66.3 million,
including $14.3 million at LaRonde,
$11.7 million at Kittila,
$11.5 million at Meadowbank,
$10.8 million at Pinos Altos, $10.0
million at Canadian Malartic, $5.0
million at Goldex, $1.7
million at La India and $1.3
million at Creston Mascota.
Dividend Record and Payment Dates for the Second
Quarter of 2016
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.08 per common share,
payable on June 15, 2016 to
shareholders of record as of June 1,
2016. Agnico Eagle has declared a cash dividend every year
since 1983.
Other Expected Dividend and Record Dates for
2016
Record
Date
|
Payment Date
|
September
1
|
September
15
|
December
1
|
December
15
|
Dividend Reinvestment Plan
Please see the following link for information on the Company's
dividend reinvestment plan: Dividend Reinvestment Plan
First Quarter 2016 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Friday, April 29, 2016 at
8:30 AM (E.D.T.) to discuss the
Company's financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website at www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
416-260-0113 or toll-free 1-800-524-8950. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay archive:
Please dial 1-647-436-0148 or toll-free 1-888-203-1112, access code
531498.
The conference call replay will expire on May 30, 2016. The webcast, along with
presentation slides, will be archived for 180 days on the Company's
website.
Annual and Special Meeting
The Company will host its Annual and Special Meeting ("AGM") on
Friday, April 29, 2016 at
11:00 am (E.D.T).
The AGM will be held at the Sheraton Centre Toronto Hotel
(Dominion Ballroom) - 123 Queen Street West, Toronto, ON.
During the AGM, management will provide an overview of the
Company's activities. For those unable to attend in person,
the alternatives to participate are listed below.
Via Webcast:
A live audio webcast of the AGM will be available on the Company's
website at www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
1-416-260-0113 or toll-free 1-800-524-8950. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the AGM.
Replay archive:
Please dial 1-647-436-0148 or toll-free 1-888-203-1112, access code
5039640.
The conference call replay will expire on May 30, 2016. The webcast, along with
presentation slides, will be archived for 180 days on the Company's
website.
NORTHERN BUSINESS OPERATING REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in three mines (LaRonde, Goldex and Lapa) and a 50%
interest in the Canadian Malartic mine. These mines are
located within 50 kilometres of each other, which provides
operating synergies and allows for the sharing of technical
expertise.
LaRonde Mine – Strong Operational Performance Driven by
Increased Tonnage from the High-grade Mining Area (293
Pyramid)
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988.
The LaRonde mill processed an average of 6,348 tonnes per day
("tpd") in the first quarter of 2016, compared with an average of
6,203 tpd in the corresponding period of 2015. Minesite costs
per tonne4 were approximately C$103 in the first quarter of 2016, lower than
the C$104 per tonne experienced in
the first quarter of 2015. The decreased costs in the 2016
period were primarily due to strong performance from the
underground mine resulting in higher throughput levels in the
processing facility.
LaRonde's total cash costs per ounce on a by-product basis were
$529 in the first quarter of 2016 on
payable production of 75,337 ounces of gold. This compares
with the first quarter of 2015 when total cash costs per ounce on a
by-product basis were $703 on
production of 58,893 ounces of gold. The decrease in total
cash costs per ounce in the 2016 period was largely due to higher
production (due to higher throughput levels, higher gold grades
from the lower mine area and improved recoveries from the CIP
circuit).
During the first quarter of 2016, ramp development reached a
depth of three kilometres which will allow access to the higher
grade ore as mining continues into the deeper portions of the
mine.
Studies are progressing to assess the potential to extend the
mineral reserve base and carry out mining activities between the
311 and 371 levels at LaRonde. At present, the mineral
reserve base extends to the 311 level, which is 3.1 kilometres
below the surface. An infill drill program is continuing from
the 311 to the 371 levels with a focus on the western portion of
the deposit. Infill drilling will also be carried out on the
eastern portion of the deposit as underground development extends
into that area.
During the quarter, the Company continued with an internal
scoping study to evaluate the potential to develop and mine
Bousquet Zone 5 on the adjoining
Bousquet property. Previous property owners had partly
exploited Bousquet Zone 5 by open
pit and underground. The Company is evaluating the potential
to initially mine Bousquet Zone 5
from a depth of 90 to 330 metres below surface using underground
ramp access. The mining method is likely to be similar to
that employed at Goldex and processing could utilize excess
capacity from the Lapa circuit at LaRonde.
Dewatering of the old pit is underway and a certificate of
authorization from the Quebec
government to permit collection of a bulk sample is expected to be
issued before the end of the second quarter of 2016. An
internal technical study is expected to be completed by the end of
2016.
___________________________
|
4 Minesite costs per tonne is a non-GAAP
measure. For a reconciliation of this measure to production costs
as reported in the financial statements, see "Reconciliation of
Non-GAAP Financial Performance Measures – Reconciliation of
Production Costs to Minesite Costs per Tonne by Mine" below. See
also "Note Regarding Certain Measures of
Performance".
|
Canadian Malartic Mine – Record Quarterly Mill
Performance During the Winter Season
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired all of the issued and
outstanding common shares of Osisko Mining Corporation ("Osisko")
and created the Canadian Malartic General Partnership (the
"Partnership") that now owns and operates the Canadian Malartic
mine in northwestern Quebec
through a joint management committee. Each of Agnico Eagle
and Yamana has an indirect 50% ownership interest in the
Partnership.
During the first quarter of 2016, the Canadian Malartic mill (on
a 100% basis) processed an average of 52,314 tpd, compared with an
average of 51,988 tpd in the corresponding period of 2015.
This represents a record quarter during the winter season.
Minesite costs per tonne were approximately C$24 (C$21.26
excluding royalties) compared to the C$23 (C$20.16
excluding royalties) per tonne experienced in the first quarter of
2015. In the 2016 period costs were higher primarily due to
lower capitalized stripping. The average stripping ratio in
the first quarter of 2016 was 2.01 to 1.0.
For the first quarter of 2016, Agnico Eagle's 50% share of
production at the Canadian Malartic mine was 73,613 ounces of gold
at total cash costs per ounce on a by-product basis of $557. This compares with the first quarter
of 2015 when total cash costs per ounce on a by-product basis were
$632 on production of 67,893 ounces
of gold. Production was higher in the 2016 period primarily
due to higher throughput levels and higher gold grades. Costs
in the 2016 period were lower due to lower costs for fuel and
explosives and favourable foreign exchange rates.
In February 2016, the Partnership
announced that throughput levels for 2016 were forecast to be
53,000 tpd. Any increase in throughput above this 53,000 tpd
level remains contingent upon updating the existing operating
permits.
Permitting activities for the Barnat Extension and deviation of
Highway 117 are continuing. Having received answers to two
series of questions, in April 2016,
the Ministry of Sustainable Development, Environment and the Fight
Against Climate Change (Quebec)
accepted the Environmental Impact Assessment ("EIA") for the Barnat
Extension as admissible. This was the trigger for the public
hearings process to start and the first step was the release of the
EIA to the public. This will be followed with a public
presentation of the project in May and subsequent public hearings
in June.
During the quarter, drilling continued on the Odyssey North and
South Zones and to date, 18 holes totaling 18,581 metres have been
completed. Data from these holes are currently being compiled
and integrated into the existing database. In 2016,
approximately 60,000 metres of drilling has been proposed to infill
and expand the known mineralized zones on the Odyssey
property. The 2016 budget is C$8.0
million (on a 100% basis).
Update of Activities on the Canadian Malartic
Corporation Exploration Projects
Canadian Malartic Corporation
("CMC"), a company in which each of Agnico Eagle and Yamana hold an
indirect 50% interest, is exploring, among other things, a
portfolio of properties in the Kirkland
Lake area of Ontario and
the Pandora property in the Abitibi region of Quebec.
In the Kirkland Lake area,
target generation studies are ongoing on the Upper Canada, Upper Beaver and Amalgamated
Kirkland properties. Additional exploration work may be
carried out after the data review is completed.
Lapa – Optimization of Historical Mining Areas Leads to
Increased Underground Tonnage
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in
May 2009.
The Lapa circuit, located at the LaRonde mill, processed an
average of 1,763 tpd in the first quarter of 2016. This
compares with an average of 1,690 tpd in the first quarter of
2015. The higher throughput in the 2016 period was due to the
recovery of residual ore from old production areas in the mine and
additional feed from stockpiles.
Minesite costs per tonne were C$121 in the first quarter of 2016, compared to
the C$119 realized in the first
quarter of 2015. Costs in the 2016 period were higher due to
the processing of stockpiled ore compared to the same period in
2015.
Payable production in the first quarter of 2015 was 21,709
ounces of gold at total cash costs per ounce on a by-product basis
of $668. This compares with the
first quarter of 2015, when production was 25,920 ounces of gold at
total cash costs per ounce on a by-product basis of $568. In the 2016 period, production was
lower and costs were higher due to lower gold grades and
recoveries, partially offset by favourable foreign exchange
rates.
At Lapa, 2016 is the last full year of production based on the
current life of mine plan. In the remainder of 2016,
production is expected to exhibit a decline with full year expected
to total 60,000 ounces of gold, as February
2016 guidance. Additional exploration drilling in the
Zulapa 7 Up and 7 East Zones is underway which, if successful,
could potentially extend the mine life.
Goldex – Continued Strong Underground Performance Leads
to Increased Mill Throughput in the First Quarter of
2016
The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining
operations in the original Goldex Extension Zone ("GEZ") orebody
were suspended in October 2011. In July 2012, the M and E satellite zones were
approved for development. Mining operations at GEZ remain
suspended. Mining operations on the M and E satellite zones
commenced in September 2013.
The Goldex mill processed an average of 6,991 tpd in the first
quarter of 2016. This compares with an average of 6,294 tpd
in the first quarter of 2015. The higher throughput in the
2016 period was due to continued strong underground performance
(mining and ore hoisting) compared to the 2015 period.
Minesite costs per tonne were approximately C$34 in the first quarter of 2016, the same as
the C$34 per tonne experienced in the
first quarter of 2015.
Payable gold production in the first quarter of 2016 was 32,340
ounces of gold at total cash costs per ounce on a by-product basis
of $506. This compares with the
first quarter of 2015, when production was 29,250 ounces of gold at
total cash costs per ounce on a by-product basis of $541. The decrease in total cash costs in
the 2016 period was largely a result of increased production (due
to higher throughput levels and higher grades from the M zone) and
favourable foreign exchange rates.
Development of the Deep 1 Zone remains on time and on
budget. Work on the electrical substations commenced in
March 2016 and the installation of
the initial components of the underground conveyor system are
underway.
In January 2014, Agnico Eagle
acquired the Akasaba West gold-copper deposit from Alexandria
Minerals Corporation. Located less than 30 kilometres from
Goldex, the Akasaba West deposit could potentially create
flexibility and synergies for the Company's operations in the
Abitibi region by using extra milling capacity at both Goldex and
LaRonde, while reducing overall costs. The Akasaba West
deposit currently hosts a mineral reserve of approximately 141,000
ounces of gold (4.8 million tonnes of ore grading 0.92 g/t gold and
0.52% copper).
Following the submission of the environmental assessment for the
Akasaba West deposit to the provincial government in August and to
the federal government in September
2015, questions were received from both sets of
regulators. Responses to provincial government questions were
submitted in February and responses to the Canadian Environmental
Assessment Agency were submitted in March 2016. Supplementary
questions are expected from both levels of government in the second
quarter of 2016. If public hearings are required they would
likely take place in the first quarter of 2017.
FINLAND AND
SWEDEN
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. Exploration activities continue to
expand the mineral resources and studies are underway to evaluate
the potential to cost-effectively increase production.
Kittila – Underground Access Ramp to the Sisar Zone Now
Underway
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
The Kittila mill processed an average of 4,749 tpd in the first
quarter of 2016, compared to 3,836 tpd in the first quarter of
2015. The higher throughput in the 2016 period is a
reflection of the ongoing optimization of the overall mill
capacity.
Minesite costs per tonne at Kittila were approximately €72 in
the first quarter of 2016, compared to €77 in the first quarter of
2015. Minesite costs per tonne decreased in the first quarter
of 2016 due to the increased throughput when compared with the 2015
period.
First quarter 2016 payable gold production at Kittila was 48,127
ounces at total cash costs per ounce on a by-product basis of
$726. In the first quarter of
2015, the mine produced 44,654 ounces of gold at total cash costs
per ounce on a by-product basis of $681. The higher production in the 2016
period is related to the increased mill capacity partially offset
by lower than expected grades compared to the 2015 period.
Total cash costs per ounce increased in the first quarter of 2016
primarily due to higher contractor costs which were partially
offset by lower energy costs.
The Kittila mine and mill has shown potential to operate in
excess of 4,000 tpd and efforts are ongoing to assess the optimal
throughput rate. Studies are also underway to optimize
underground mining rates and fully integrate the upper and lower
Rimpi zones and the newly discovered Sisar Zone in a new Kittila
mine plan. Unit costs are expected to improve once steady
state operations are achieved.
Drilling is ongoing to infill and extend the mineralization in
the Sisar Zone. Numerous holes have been completed and assay
results are pending. In addition, underground ramp
construction began in March to access the upper portion of the
Sisar Zone, which is located approximately 200 metres from existing
underground infrastructure.
Barsele Project – Drilling Extends the Central and
Skirasen Zones and Suggests the Potential for a Goldex Type
Deposit
In June 2015, Agnico Eagle
acquired a 55% interest in the Barsele project in Vasterbotten
County, northern Sweden from Orex
Minerals (Orex Minerals subsequently transferred its interest in
the project to Barsele Minerals Corp.). The Company can earn
an additional 15% interest in the project through the completion of
a pre-feasibility study. The exploration program is being
operated by Agnico Eagle. This is the first release of drill
results on the property by Agnico Eagle since the acquisition of
its interest in the 28,600-hectare property.
The Barsele project is located at the intersection of the
western end of the Proterozoic "Skellefte Trend," a prolific
volcanogenic massive sulphide deposit belt with the "Gold Line" in
northern Sweden. The Barsele property is known to contain
intrusive-hosted gold mineralization (the Central, Avan and
Skirasen zones) which appears to be similar to the Goldex deposit
and gold-rich volcanogenic massive sulphide mineralization (the
Norra Zone) which appears to be similar to the LaRonde deposit.
The Avan, Central and Skirasen zones extend over a strike length
of 2.6 kilometres within a highly fractured granodiorite that
ranges in width from 200 to 500 metres over a strike length of more
than eight kilometres. Gold occurs as native metal and is
generally associated with arsenopyrite, with low base metal
content.
Drilling from October 2015 to
early March 2016 (23 holes totalling
13,300 metres) focused on the Skirasen and Central zones.
Recent intercepts and drill hole coordinates from this program
are set out below and the drill hole pierce points are also shown
on the Barsele composite longitudinal section. All intercepts
reported for the Barsele project show capped grades over estimated
true widths, based on a preliminary geological interpretation that
is being updated as new information becomes available with further
drilling.
Recent exploration drill results from the Barsele
project
Drill hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)*
|
CNT15-007
|
Central Zone
|
437.0
|
449.0
|
310
|
9.0
|
12.37
|
3.28
|
CNT15-009
|
Central Zone
|
106.0
|
168.0
|
90
|
46.5
|
1.12
|
1.12
|
and
|
|
383.0
|
432.0
|
300
|
36.8
|
1.15
|
1.15
|
CNT15-010
|
Central Zone
|
223.0
|
252.0
|
230
|
21.8
|
1.59
|
1.59
|
and
|
|
494.0
|
589.0
|
515
|
71.2
|
0.88
|
0.88
|
CNT15-013
|
Central Zone
|
473.5
|
492.0
|
370
|
13.9
|
3.00
|
3.00
|
and
|
|
519.2
|
526.0
|
400
|
5.1
|
5.02
|
5.02
|
CNT15-015
|
Central Zone
|
23.0
|
34.0
|
20
|
8.2
|
8.06
|
6.74
|
CNT15-016
|
Skirasen Zone
|
270.0
|
277.0
|
215
|
5.2
|
5.06
|
5.06
|
and
|
|
339.0
|
451.0
|
310
|
84.0
|
2.07
|
2.01
|
CNT15-017
|
Central Zone
|
623.0
|
632.0
|
540
|
6.8
|
1.72
|
1.72
|
SKI15-001
|
Skirasen Zone
|
323.0
|
384.0
|
260
|
45.8
|
1.94
|
1.61
|
and
|
|
405.0
|
434.0
|
310
|
21.8
|
1.42
|
1.42
|
SKI16-001
|
Skirasen Zone
|
101.0
|
108.0
|
75
|
5.2
|
4.85
|
4.85
|
and
|
|
120.0
|
140.0
|
95
|
15.0
|
3.92
|
3.23
|
and
|
|
276.0
|
312.1
|
210
|
27.1
|
3.06
|
2.40
|
SKI16-005
|
Skirasen Zone
|
193.0
|
213.0
|
170
|
15.0
|
1.19
|
1.19
|
and
|
|
399.0
|
504.0
|
370
|
78.8
|
1.25
|
1.25
|
and
|
|
593.0
|
609.0
|
485
|
12.0
|
1.86
|
1.86
|
*Holes at Barsele use a capping factor of 20 g/t
gold.
Barsele project exploration drill collar coordinates of
selected holes
|
Drill collar coordinates*
|
Drill hole ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
CNT15-007
|
7214686
|
618733
|
321
|
360
|
-53
|
725
|
CNT15-009
|
7214671
|
618829
|
317
|
360
|
-57
|
701
|
CNT15-010
|
7215040
|
618808
|
291
|
180
|
-70
|
655
|
CNT15-013
|
7214613
|
619033
|
306
|
333
|
-55
|
597
|
CNT15-015
|
7214601
|
619133
|
296
|
360
|
-52
|
523
|
CNT15-016
|
7214525
|
619127
|
302
|
360
|
-55
|
664
|
CNT15-017
|
7214895
|
618859
|
293
|
290
|
-60
|
902
|
SKI15-001
|
7214598
|
619125
|
296
|
040
|
-48
|
580
|
SKI16-001
|
7214515
|
619222
|
300
|
040
|
-50
|
557
|
SKI16-005
|
7214516
|
619221
|
300
|
360
|
-57
|
645
|
* Coordinate System Sweref 99
Barsele Project - Composite Longitudinal
Section
Recent drilling has connected the Central Zone with the Skirasen
Zone. The combined Central-Skirasen Zone has a strike length
of approximately 1,400 metres, extends from surface to a depth of
at least 540 metres and ranges in width from ten to 150
metres. Mineralization remains open at depth and along
strike.
Results include hole CNT15-016 that intersected the Skirasen
Zone with two intercepts: 5.06 g/t gold over 5.2 metres at 215
metres depth, and 2.01 g/t gold over 84.0 metres at 310 metres
depth. Almost 300 metres away at the southeast extent of the
zone, hole SKI16-001 intersected the zone with three intercepts:
4.85 g/t gold over 5.2 metres at 75 metres depth, 3.23 g/t gold
over 15.0 metres at 95 metres depth and 2.40 g/t gold over 27.1
metres at 210 metres depth. The deepest intercept to date in
the Skirasen Zone is hole SKI16-005 that intersected 1.86 g/t gold
over 12.0 metres at 485 metres depth, as well as two shallower
intercepts.
Recent drilling has extended the depth of the Central Zone to
540 metres. Highlights include hole CNT15-015 that
intersected 6.74 g/t gold over 8.2 metres at 20 metres depth.
Hole CNT15-013 intersected 3.00 g/t gold over 13.9 metres at
370 metres depth and 5.02 g/t gold over 5.1 metres at 400 metres
depth. Hole CNT15-007 intersected 3.28 g/t gold over 9.0
metres at 310 metres depth.
In 2016, the Company plans to spend approximately $4.9 million on exploration to further evaluate
the mineral potential of the property. This planned
expenditure includes 19,000 metres of diamond drilling, a Titan-24
induced polarization geophysical survey, till sampling and
hyperspectral core scanning. A basic environmental assessment
will be done, as well as ongoing community relations programs to
engage the various stakeholders in the region. Drilling is
expected to resume in late April after spring breakup.
NUNAVUT
REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's largest producing mine (Meadowbank), two significant
development assets (Meliadine and Amaruq) and other exploration
projects, Nunavut has the
potential to be a strategic operating platform with the ability to
generate strong production and cash flows over several decades.
Meadowbank – Reviewing Further Opportunities to
Potentially Extend the Minelife Through Year-End
2018
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in
March 2010.
The Meadowbank mill processed an average of 10,390 tpd in the
first quarter of 2016, compared to 11,006 tpd in the first quarter
of 2015. Period-over-period mill throughput was lower due to
replacement of belts on the conveyor system feeding the SAG mill,
an unscheduled shutdown of the secondary crushing circuit for
maintenance in February and larger portion of ore from the Vault
pit which has a higher hardness factor.
Minesite costs per tonne were C$77
in the first quarter of 2016 compared to C$71 per tonne in the first quarter of
2015. The increase in costs per tonne was primarily due to
lower throughput that resulted from the unscheduled shutdown.
Payable production in the first quarter of 2016 was 72,311
ounces of gold at total cash costs per ounce on a by-product basis
of $788. This compares with the
first quarter of 2015 when 88,523 ounces of gold were produced at
total cash costs per ounce on a by-product basis of $655. The lower production and higher costs
in the 2016 period compared to the 2015 period are primarily due to
lower throughput levels and the processing of lower grade ore (down
14% period-over-period).
Studies are currently underway to investigate additional
opportunities to extend production at Meadowbank through year-end
2018. Potential opportunities include the development of the
Phaser pit, which is located to the southwest of the Vault pit, and
an additional pushback to access additional ore in the E3 pit at
the Portage deposit.
Amaruq Project – Exploration Access Road Construction
and Permitting
The Company is actively exploring the Amaruq deposit (see below)
with the goal of potentially developing the deposit as a satellite
operation to Meadowbank.
On March 14, 2016, the Company
received confirmation from the Department of Fisheries and Oceans
that it was fully permitted to complete the construction of
bridges, bridge abutments, embedded culverts and drainage culverts
along the Amaruq Exploration Access Road. This concluded the
permitting of the Amaruq Exploration Access Road and the Company
now has all of the required permits, leases and authorizations to
complete both the winter and summer construction of the road.
Construction of the Amaruq Exploration Access Road commenced in
the first quarter of 2016. Road construction is ongoing with
nine kilometres completed to date of the expected total length of
62 kilometres.
An application for an amendment to the Amaruq Exploration Type B
Water License was submitted on March 31,
2016 to allow for the development of an exploration ramp and
portal and the mining of a bulk sample. The permit approval
process for the exploration ramp is expected to take approximately
nine months.
In order to mine the Whale Tail deposit, amendments are needed
to the Meadowbank Project Certificate and Type A water
license. The amendments are expected to be submitted by the
end of June 2016.
Amaruq Project – Improved Understanding of Whale Tail
Ore Shoot and IVR Deposit
Agnico Eagle has a 100% interest in the Amaruq project.
The large property consists of 116,717 hectares, located
approximately 50 kilometres northwest of the Meadowbank mine.
The most recent drill results from the Amaruq project were reported
in the Company news release dated October
28, 2015. The inferred mineral resource estimate as of
December 31, 2015 is 3.3 million
ounces gold (16.9 million tonnes grading 6.05 g/t gold).
The 2016 drill program began at the end of January.
Drilling to the end of March has totalled 18,836 metres (84 holes)
using up to eight rigs, part of an initial 75,000-metre drill
program. The goals of the 2016 exploration program are to
infill and expand the known mineral resource areas and to test
other favourable targets with a focus on delineating a second
source of open pit ore.
Selected drill results and hole coordinates are set out in the
tables below. Drill hole collars are also shown on the Amaruq
Project Local Geology Map. All intercepts reported for the
Amaruq project show capped grades over estimated true widths, based
on a preliminary geological interpretation that is being updated as
new information becomes available with further drilling.
Recent exploration drill results from the Whale Tail
(WT) deposit and the V Zone, Amaruq project
Drill hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)*
|
AMQ16-560
|
IVR Zone
|
276.7
|
283.5
|
230
|
6.3
|
38.3
|
6.2
|
including
|
|
276.7
|
280.5
|
230
|
3.5
|
66.1
|
8.7
|
AMQ16-570
|
WT Shoot
|
327.0
|
382.0
|
288
|
47.6
|
5.9
|
5.9
|
including
|
|
327.0
|
333.1
|
267
|
4.3
|
8.1
|
8.1
|
and including
|
|
354.0
|
378.0
|
297
|
20.8
|
9.3
|
9.3
|
AMQ16-601
|
WT Shoot
|
289.0
|
326.1
|
252
|
32.0
|
8.8
|
8.8
|
including
|
|
289.0
|
293.3
|
238
|
3.7
|
17.1
|
17.1
|
and including
|
|
303.0
|
326.1
|
258
|
20.0
|
10.8
|
10.8
|
AMQ16-605
|
IVR Zone
|
35.0
|
45.3
|
35
|
9.7
|
7.2
|
5.9
|
AMQ16-643
|
IVR Zone
|
91.3
|
108.4
|
98
|
16.1
|
42.9
|
11.0
|
including
|
|
92.0
|
97.5
|
94
|
5.2
|
36.4
|
21.6
|
AMQ16-654
|
IVR Zone
|
65.5
|
78.0
|
69
|
12.1
|
22.7
|
4.1
|
including
|
|
74.3
|
78.0
|
73
|
3.6
|
72.2
|
9.4
|
*Holes at Whale Tail deposit use a capping factor of 40
to 80 g/t gold. Holes at IVR Zone use a capping factor of 40
g/t gold.
Amaruq project exploration drill collar coordinates of
selected holes
|
Drill collar coordinates*
|
Drill hole ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
AMQ16-560
|
7256055
|
607123
|
153
|
323
|
-55
|
318
|
AMQ16-570
|
7255683
|
606741
|
153
|
144
|
-56
|
410
|
AMQ16-601
|
7255544
|
606559
|
153
|
144
|
-55
|
360
|
AMQ16-605
|
7256151
|
606616
|
164
|
322
|
-60
|
246
|
AMQ16-643
|
7256320
|
606986
|
157
|
323
|
-80
|
249
|
AMQ16-654
|
7256320
|
606909
|
156
|
315
|
-75
|
144
|
* Coordinate System UTM Nad 83 zone 14
Amaruq Project - Local Geology Map
Two of the reported holes were drilled toward the southeast to
increase the confidence in the true thickness and configuration of
the Whale Tail ore shoot, which plunges about 30 degrees to the
east from surface to at least 430 metres depth. The shoot
appears to be thicker than previously interpreted in the Central
area. Hole AMQ16-601 intersected 8.8 g/t gold over 32.0
metres, including 17.1 g/t gold over 3.7 metres at 238 metres depth
and 10.8 g/t gold over 20.0 metres at 258 metres depth.
Approximately 230 metres to the northeast, hole AMQ16-570
intersected 5.9 g/t gold over 47.6 metres, including 8.1 g/t gold
over 4.3 metres at 267 metres depth and 9.3 g/t gold over 20.8
metres at 297 metres depth.
A grouping of three drill holes investigated the widest horizon
in the IVR Zone, which continues to yield high grades. Hole
AMQ16-643 intersected 11.0 g/t gold over 16.1 metres at 98 metres
depth, including 21.6 g/t gold over 5.2 metres. Approximately
80 metres to the west, hole AMQ16-654 intersected 4.1 g/t gold over
12.1 metres at 69 metres depth, including 9.4 g/t gold over 3.6
metres. Approximately 340 metres farther to the southwest,
hole AMQ16-605 intersected 5.9 g/t gold over 9.7 metres at 35
metres depth.
Hole AMQ16-560 was drilled in the area between the east end of
Whale Tail and the southern part of IVR. The hole intersected
what is believed to be the southernmost IVR Zone, and returned 6.2
g/t gold over 6.3 metres at 230 metres depth, including 8.7 g/t
gold over 3.5 metres. This intersection has extended the
depth of the IVR Zone by almost 100 metres, to 230 metres.
Additional drilling is planned to further investigate the potential
intersection of the IVR Zone and the Whale Tail deposit.
Drilling is ongoing with nine rigs on the property. An
updated Amaruq mineral resource is expected in the second half of
2016.
Meliadine – Type A Water License Permit Expected by the
End of the Second Quarter of 2016
The Meliadine project was acquired in July 2010 and is the Company's largest advanced
exploration/development project based on mineral reserves and
mineral resources. The Company has a 100% interest in the
111,757 hectare property, which is linked to the town of
Rankin Inlet in Nunavut by a 25 kilometre all-weather access
road.
The capital budget for 2016 is $96
million, with activities focused on further underground
development (approximately 3,700 metres), detailed engineering and
procurement, construction of essential surface infrastructure and
the acquisition of a used camp facility. The goal of the 2016
capital program is to ensure that the project remains on track for
a potential 2020 production start-up, which is approximately a one
year delay from previous expectations.
In the first quarter of 2016, approximately 1,103 metres of
underground development was completed. Of this total, 442
metres of development were completed in March, making it the best
month since the beginning of the project.
On April 15, 2016, the Nunavut
Water Board issued the Meliadine Project Type A Water Licence to
the Federal Minister of Indigenous and Northern Affairs Canada for
approval. The standard approval timeframe for the minister is
45 days. Approval of the licence is therefore expected by the
end of May 2016. The Type A Water Licence would allow for the
construction and operation of the Meliadine project.
Internal studies are continuing to evaluate the potential to
extract additional gold from the Tiriganiaq and Wesmeg/Normeg
deposits, which could potentially extend the mine life, increase
annual production and improve project economics and the after-tax
internal rate of return. These studies are expected to be
completed by the end of 2016.
The timing of future capital expenditures at the Meliadine
project beyond 2016 and the determination of whether to build a
mine at Meliadine are subject to approval by Agnico Eagle's Board
of Directors, which will be based on, among other things,
prevailing market conditions and outcomes of the various plans
being evaluated.
SOUTHERN BUSINESS OPERATING REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations have been the source of growing
precious metals production (gold and silver), stable operating
costs and strong free cash flow since 2009. In the first
quarter of 2016, the Mexican operations had record quarterly silver
production of approximately 752,000 ounces.
Pinos Altos – Shaft on
Schedule for full Commissioning in the second quarter of
2016
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
The Pinos Altos mill processed
4,932 tpd in the first quarter of 2016 compared to 5,661 tpd
processed in the first quarter of 2015. Mill throughput in
the 2016 period was negatively affected by clay encountered in the
Cerro Colorado underground ore and
freezing weather conditions. During the first quarter of
2016, approximately 53,200 tonnes of ore were stacked on the leach
pad at Pinos Altos, compared to
74,300 tonnes in the comparable 2015 period.
Minesite costs per tonne at Pinos
Altos were $50 in the first
quarter of 2016, higher than the $46
in the first quarter of 2015. The difference in minesite
costs per tonne was largely attributable to lower thoughput levels
and variations in the proportion of heap leach ore to milled ore
and open pit ore to underground ore, currency variations and
routine fluctuations in the waste to ore stripping ratio in the
open pits.
Payable production in the first quarter of 2016 was 48,117
ounces of gold at total cash costs per ounce on a by-product basis
of $343. This compares with
production of 50,106 ounces of gold at total cash costs per ounce
on a by-product basis of $357 in the
first quarter of 2015. Lower production in 2016 is largely
due to lower tonnage processed over the comparable period in
2015. The decrease in the year over year total cash costs per
ounce is largely due to favourable foreign exchange rates compared
to the prior year period.
The Pinos Altos shaft was
commissioned for moving mine personnel and materials in the first
quarter of 2016. The ore handling system is on schedule to be
commissioned in the second quarter of 2016. When the shaft is
fully commissioned, it will allow better matching of the mill
capacity with the future mining capacity at Pinos Altos once the open pit mining operation
begins to wind down as planned.
Creston Mascota Deposit at Pinos Altos – Exploration Commences on the
Madrono Property Which Hosts Historical Gold-Silver
Prospects
The Creston Mascota deposit at Pinos
Altos has been operating as a satellite operation to the
Pinos Altos mine since late
2010.
Approximately 516,200 tonnes of ore were stacked on the Creston
Mascota leach pad during the first quarter of 2016, compared to
approximately 527,000 tonnes stacked in the first quarter of
2015. In the 2016 period, fewer tonnes were stacked due to
freezing weather conditions encountered in January. Minesite
costs per tonne at Creston Mascota were $12 in the first quarter of 2016, compared to
$11 in the first quarter of
2015. Costs in the 2016 period were slightly higher due to
the freezing conditions encountered early in the quarter.
Payable gold production at Creston Mascota in the first quarter
of 2016 was 11,551 ounces at total cash costs per ounce on a
by-product basis of $460. This
compares to 12,448 ounces of gold at total cash costs per ounce on
a by-product basis of $444 during the
first quarter of 2015. Production was lower in the 2016
period due to fewer tonnes stacked and lower grades compared to the
2015 period. Lower production in the 2016 period resulted in
higher cash costs, which were partially offset by favourable
foreign exchange rates compared to the 2015 period.
Rough earthworks are nearing completion on the Phase 4 heap
leach pad at Creston Mascota. Installation of the clay under
layer and synthetic liner is expected to commence in the second
quarter of 2016.
During the first quarter of 2016, an agreement was signed that
allows access to the 51-hectare Madrono property for exploration
and mining. The Madrono property is located in an area with
good access and infrastructure between Pinos Altos and Creston Mascota, includes at
least three gold-silver veins: Madrono, Santa Martha and La Curva. Previous
mining in this area included small-scale bonanza production from
underground mine development on three levels in the 1930s.
Mapping, surface sampling and exploration planning for Madrono is
underway.
Exploration and infill drilling continues at the Bravo satellite target and around the Creston
Mascota pit to increase the confidence in the block model and look
for additional growth opportunities.
La India – Additional
Ore Tonnes Encountered Outside the Block Model
The La India mine property in Sonora,
Mexico, located approximately 70 kilometres from the
Company's Pinos Altos mine, was
acquired in November 2011 through the
purchase of Grayd Resources, which held a 56,000 hectare land
position in the Mulatos Gold belt. Commissioning of the mine
commenced ahead of schedule in the third quarter of 2013 and
commercial production was declared as of February 1, 2014.
Approximately 1,396,300 tonnes of ore were stacked on the La
India leach pad during the first quarter of 2016, compared to
approximately 1,378,500 tonnes stacked in the first quarter of
2015. Minesite costs per tonne at La India were $8 in the first quarter of 2016, compared to
$9 in the first quarter of
2015. Tonnes stacked in the 2016 period were higher due to
the mining of additional lower grade ore tonnes previously
identified as waste in the block model. Costs were lower in
the 2016 period primarily due to lower fuel consumption and less
waste mined.
Payable gold production at La India in the first quarter of 2016
was 28,231 ounces at total cash costs per ounce on a by-product
basis of $360. Production in
the first quarter of 2015 was 26,523 ounces of gold at total cash
costs per ounce on a by-product basis of $418. Production was higher in the 2016
period due to higher tonnage stacked and faster percolation rates
from the new lifts on the phase 2 heap leach pad. Total cash
costs per ounce on a by-product basis in the 2016 period were
favourably impacted by higher production volumes (for both gold and
silver) and favourable foreign exchange rates.
A land access agreement was signed in January 2016, allowing access for exploration and
potential future mining on the El
Realito claims. Surface sampling and target generation
are underway at El Realito and
favourable targets will then be drill-tested. Step-out
drilling is also planned at the El
Cochi and La India Este areas adjacent to the La India
mine. An initial drill program is planned at the Kilometre 15
area which is located east and contiguous with the El Realito property.
El Barqueno - Recent Drill Program Expands Known
Deposits and Tests Other Target Areas
Agnico Eagle acquired its 100% interest in the El Barqueno
project in November 2014 with the
acquisition of Cayden Resources Inc. The 32,840-hectare
property is in the Guachinango
gold-silver mining district of Jalisco State in west-central,
Mexico, approximately 150
kilometres west of the state capital of Guadalajara. As of December 31, 2015, the El Barqueno project has an
inferred mineral resource of 19.7 million tonnes grading 0.96 g/t
gold and 5.78 g/t silver (containing 608,000 ounces of gold and 3.7
million ounces of silver) at the Azteca-Zapoteca, Angostura and Peña de Oro zones. This news
release summarizes the results of exploration and in-fill drilling
programs completed on the project to the end of March 2016.
The El Barqueno project contains a number of known mineralized
zones and several prospects. From January through
March 2016, 156 holes (27,523 metres)
were drilled using 14 drill rigs in order to complete infill
drilling on the Azteca-Zapoteca Zone and to explore for additional
mineralized structures and extensions of the other known
zones. The Azteca-Zapoteca infill work represents 90% of the
drilling completed to date in 2016. There are currently six
drill rigs operating on the project testing other targets including
Zapote-Mixteca, San Diego, Olmeca,
Huichol and Tarasca.
El Barqueno Project – Local Geology Map
Gold and silver grades of recent intercepts from the
Azteca-Zapoteca and Angostura Zones are set out in the table below
and the drill collars are located in the accompanying table as well
as on the project geology map. All intercepts reported for
the El Barqueno project show uncapped grades over estimated true
widths, based on a preliminary geological interpretation that will
be updated as new information becomes available with further
drilling.
Selected recent exploration drill results from the El
Barqueno project
Drill Hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)*
|
Silver grade
(g/t)
(uncapped)
|
AZP16-212
|
Azteca-Zapoteca
|
90.0
|
98.0
|
62
|
4.8
|
1.63
|
8.8
|
AZP16-219
|
Azteca-Zapoteca
|
27.0
|
50.0
|
34
|
9.2
|
4.07
|
14.3
|
AZP16-243
|
Azteca-Zapoteca
|
46.0
|
53.0
|
38
|
5.6
|
22.39
|
24.3
|
and
|
|
63.0
|
71.0
|
52
|
6.4
|
1.07
|
2.9
|
AZP16-260
|
Azteca-Zapoteca
|
89.0
|
118.0
|
89
|
14.5
|
1.16
|
6.8
|
AZP16-272
|
Azteca-Zapoteca
|
166.0
|
176.0
|
136
|
4.0
|
1.07
|
3.2
|
AZP16-282
|
Azteca-Zapoteca
|
43.0
|
49.0
|
40
|
4.0
|
1.96
|
3.8
|
AZP16-294
|
Azteca-Zapoteca
|
41.0
|
49.0
|
42
|
6.4
|
1.66
|
3.2
|
AZP16-297
|
Azteca-Zapoteca
|
45.0
|
53.0
|
49
|
7.9
|
4.40
|
11.3
|
AZP16-300
|
Azteca-Zapoteca
|
13.0
|
22.0
|
12
|
7.2
|
6.93
|
12.2
|
AZP16-322
|
Azteca-Zapoteca
|
130.0
|
145.0
|
134
|
12.0
|
7.31
|
53.1
|
BRQ15-239
|
Angostura
|
153.0
|
162.0
|
161
|
8.3
|
0.33
|
83.4
|
BRQ15-245
|
Angostura
|
164.0
|
176.0
|
140
|
10.9
|
1.52
|
19.1
|
BRQ15-285
|
Angostura
|
316.0
|
322.0
|
192
|
5.5
|
0.69
|
24.4
|
BRQ15-288
|
Angostura
|
188.0
|
199.0
|
172
|
9.7
|
1.28
|
11.8
|
* Cut-off grade of 0.4 g/t gold; only intervals longer
than 2.8 metres estimated true width were included
El Barqueno project exploration drill hole collar
coordinates
|
Drill Hole Collar Coordinates*
|
Drill Hole ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
(degrees)
|
AZP16-212
|
555141
|
2279906
|
1,274
|
155
|
-60
|
172
|
AZP16-219
|
554248
|
2279658
|
1,257
|
335
|
-50
|
219
|
AZP16-243
|
554725
|
2279768
|
1,288
|
155
|
-60
|
108
|
AZP16-260
|
554953
|
2279847
|
1,286
|
155
|
-80
|
146
|
AZP16-272
|
554155
|
2279566
|
1,278
|
335
|
-50
|
336
|
AZP16-282
|
554531
|
2279724
|
1,285
|
155
|
-65
|
110
|
AZP16-294
|
554883
|
2279898
|
1,288
|
335
|
-80
|
70
|
AZP16-297
|
554438
|
2279816
|
1,248
|
335
|
-50
|
70
|
AZP16-300
|
555163
|
2279871
|
1,254
|
155
|
-45
|
61
|
AZP16-322
|
554239
|
2279765
|
1,234
|
335
|
-50
|
171
|
BRQ15-239
|
553971
|
2280155
|
1,175
|
335
|
-50
|
276
|
BRQ-15-245
|
553880
|
2280173
|
1,241
|
335
|
-50
|
265
|
BRQ-15-285
|
554164
|
2280106
|
1,214
|
335
|
-50
|
452
|
BRQ-15-288
|
554026
|
2280126
|
1,172
|
335
|
-50
|
421
|
* Coordinate System UTM WGS84 13N Zone
Azteca-Zapoteca Zone
To date, the Azteca-Zapoteca Zone has been defined over more
than 1.4 kilometres of strike length along a northeasterly
direction and has been intersected as deep as 300 metres. The
Zone remains open at depth and along strike to the southwest.
More than half of the exploration drilling and all the infill
drilling planned for this year is completed.
The steeply north-dipping Azteca structure and moderately
south-dipping Zapoteca structure appear to coalesce at a depth of
100-150 metres below surface into a near-vertical structure with
generally higher grades.
The current results show higher grades in the shallow areas
around and beneath former pits that were mined in the 1980s.
Examples include hole AZP16-243 that yielded 22.39 g/t gold and
24.3 g/t silver over 5.6 metres at 38 metres depth, as well as hole
AZP16-300 that intersected 6.93 g/t gold and 12.2 g/t silver over
7.2 metres at 12 metres depth. The gold grade tends to become
progressively lower at depth, such as hole AZP16-260 that
intersected 1.16 g/t gold and 6.8 g/t silver over 14.5 metres at 89
metres depth and hole AZP16-272 that intersected 1.07 g/t gold and
3.2 g/t silver over 4.0 metres at 136 metres depth. An
exception of a higher grade intercept at depth is hole AZP16-322
that intersected 7.31 g/t gold and 53.1 g/t silver over 12.0 metres
at 134 metres depth. This could represent a feeder structure
with depth potential, however, additional drilling will be required
to evaluate the full extent of the mineralization.
Additional drilling is planned along strike to the southwest as
well as in the footwall to the Zapoteca structure. The
Company believes there is excellent potential for parallel
mineralized structures between the Azteca-Zapoteca and Angostura mineral resource areas and two
drills are currently testing this area as a follow-up to the recent
detailed mapping and sampling completed in this area.
Angostura Zone
The Angostura Zone lies approximately 800 metres northwest of
the Azteca-Zapoteca Zone. Angostura is defined over a strike length of
more than 1,000 metres, and appears to plunge shallowly to the
southwest. The structure is open along strike and at
depth.
Recent results include hole BRQ15-245 that intersected 1.52 g/t
gold and 19.1 g/t silver over 10.9 metres at 140 metres
depth. Approximately 150 metres to the west, hole BRQ15-288
intersected 1.28 g/t gold and 11.8 g/t silver over 9.7 metres at
172 metres depth.
Drilling to date suggests Angostura could become part of a multi-pit
operation along with a larger deposit at Azteca-Zapoteca.
Additional drilling is planned along strike to the northeast and
southwest searching for other potential shallowly-plunging shoots
as well as testing the potential for parallel mineralized
structures.
Additional Work
Drill permits have been received to test the northeastern strike
extension as well as several mineralized areas identified from
mapping to the north and east of the Peña de Oro Zone, in what is now referred to as the Peña
Blanca area.
Approximately 25,000 metres of additional drilling is expected
to be completed by the end of 2016 at the El Barqueno project,
principally at the Azteca-Zapoteca, Angostura, Peña de Oro, Peña Blanca,
Zapote-Mixteca, San Diego, Olmeca,
Huichol and Tarasca prospects. Exploration expenditures in
2016 are expected to total approximately $16
million.
In addition to the drilling activities, studies are underway to
evaluate potential development scenarios for the project. It
is currently envisioned that the project's gold-silver deposits
could potentially be developed into a series of open pits utilizing
heap leach processing, similar to the Creston Mascota deposit at
Pinos Altos and the La India
mines.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its eight mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States and Sweden. The Company and its shareholders
have full exposure to gold prices due to its long-standing policy
of no forward gold sales. Agnico Eagle has declared a cash
dividend every year since 1983.
Note Regarding Certain Measures of
Performance
This news release discloses certain measures, including ''total
cash costs per ounce'', "all-in sustaining costs per ounce",
''minesite costs per tonne'' and "adjusted net income" that are not
recognized measures under IFRS. These data may not be
comparable to data reported by other gold producers. For a
reconciliation of these measures to the most directly comparable
financial information reported in the consolidated financial
statements prepared in accordance with IFRS and for an explanation
of how management uses these measures, other than adjusted net
income, see "Reconciliation of Non-GAAP Financial Performance
Measures" below. The total cash costs per ounce of gold
produced is reported on both a by-product basis (deducting
by-product metal revenues from production costs) and co-product
basis (before by-product metal revenues). The total cash
costs per ounce of gold produced on a by-product basis is
calculated by adjusting production costs as recorded in the
consolidated statements of income for by-product revenues, unsold
concentrate inventory production costs, smelting, refining and
marketing charges and other adjustments, and then dividing by the
number of ounces of gold produced. The total cash costs per
ounce of gold produced on a co-product basis is calculated in the
same manner as the total cash costs per ounce of gold produced on a
by-product basis except that no adjustment is made for by-product
metal revenues. Accordingly, the calculation of total cash
costs per ounce of gold produced on a co-product basis does not
reflect a reduction in production costs or smelting, refining and
marketing charges associated with the production and sale of
by-product metals. The total cash costs per ounce of gold
produced is intended to provide information about the
cash-generating capabilities of the Company's mining
operations. Management also uses these measures to monitor
the performance of the Company's mining operations. As market
prices for gold are quoted on a per ounce basis, using the total
cash costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash-generating capabilities
at various gold prices. All-in sustaining costs per ounce is
used to show the full cost of gold production from current
operations. The Company calculates all-in sustaining costs
per ounce of gold produced on a by-product basis as the aggregate
of total cash costs per ounce on a by-product basis, sustaining
capital expenditures (including capitalized exploration), general
and administrative expenses (including stock options) and
reclamation expenses divided by the amount of gold produced.
The all-in sustaining costs per ounce of gold produced on a
co-product basis is calculated in the same manner as the all-in
sustaining costs per ounce of gold produced on a by-product basis,
except that the total cash costs per ounce on a co-product basis is
used, meaning no adjustment is made for by-product metal
revenues. The Company's methodology for calculating all-in
sustaining costs per ounce may differ from to the methodology used
by other producers that disclose all-in sustaining costs per
ounce. The Company may change the methodology it uses to
calculate all-in sustaining costs per ounce in the future,
including in response to the adoption of formal industry guidance
regarding this measure by the World Gold Council. Management
is aware that these per ounce measures of performance can be
affected by fluctuations in exchange rates and, in the case of
total cash costs per ounce of gold produced on a by-product basis,
by-product metal prices. Management compensates for these
inherent limitations by using these measures in conjunction with
minesite costs per tonne (discussed below) as well as other data
prepared in accordance with IFRS.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating exchange rates and metal
prices. This news release also contains information as to
estimated future total cash costs per ounce, all-in sustaining
costs per ounce and minesite costs per tonne. The estimates
are based upon the total cash costs per ounce, all-in sustaining
costs per ounce and minesite costs per tonne that the Company
expects to incur to mine gold at its mines and projects and,
consistent with the reconciliation of these actual costs referred
to above, do not include production costs attributable to accretion
expense and other asset retirement costs, which will vary over time
as each project is developed and mined. It is therefore not
practicable to reconcile these forward-looking non-GAAP financial
measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
April 28, 2016. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"planned", "potential", "will" and similar expressions are intended
to identify forward-looking statements. Such statements
include, without limitation: the Company's forward-looking
production guidance, including estimated ore grades, project
timelines, drilling results, metal production, life of mine
estimates, production, total cash costs per ounce, all-in
sustaining costs per ounce, minesite costs per tonne and cash
flows; the estimated timing and conclusions of technical reports
and other studies; the methods by which ore will be extracted or
processed; statements concerning expansion projects, recovery
rates, mill throughput, optimization and projected exploration
expenditures, including costs and other estimates upon which such
projections are based; statements regarding timing and amounts of
capital expenditures and other assumptions; estimates of future
mineral reserves, mineral resources, mineral production,
optimization efforts and sales; estimates of mine life; estimates
of future mining costs, total cash costs per ounce, all-in
sustaining costs per ounce, minesite costs per tonne and other
expenses; estimates of future capital expenditures and other cash
needs, and expectations as to the funding thereof; statements as to
the projected development of certain ore deposits, including
estimates of exploration, development and production and other
capital costs and estimates of the timing of such exploration,
development and production or decisions with respect to such
exploration, development and production; estimates of mineral
reserves and mineral resources, and statements and information
regarding anticipated future exploration; the anticipated timing of
events with respect to the Company's mine sites and statements and
information regarding the sufficiency of the Company's cash
resources and other statements and information regarding
anticipated trends with respect to the Company's operations,
exploration and the funding thereof. Such statements and
information reflect the Company's views as at the date of this news
release and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements and information. Forward-looking statements are
necessarily based upon a number of factors and assumptions that,
while considered reasonable by Agnico Eagle as of the date of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
material factors and assumptions used in the preparation of the
forward looking statements contained herein, which may prove to be
incorrect, include, but are not limited to, the assumptions set
forth herein and in management's discussion and analysis
("MD&A") and the Company's Annual Information Form ("AIF") for
the year ended December 31, 2015
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2015 ("Form 40-F") filed with the
U.S. Securities and Exchange Commission (the "SEC") as well as:
that there are no significant disruptions affecting operations;
that production, permitting, development and expansion at each of
Agnico Eagle's properties proceeds on a basis consistent with
current expectations and plans; that the relevant metal prices,
exchange rates and prices for key mining and construction supplies
will be consistent with Agnico Eagle's expectations; that Agnico
Eagle's current estimates of mineral reserves, mineral resources,
mineral grades and metal recovery are accurate; that there are no
material delays in the timing for completion of ongoing growth
projects; that the Company's current plans to optimize production
are successful; and that there are no material variations in the
current tax and regulatory environment. Many factors, known
and unknown, could cause the actual results to be materially
different from those expressed or implied by such forward looking
statements. Such risks include, but are not limited to: the
volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, project
development, capital expenditures and other costs; exchange rate
fluctuations; financing of additional capital requirements; cost of
exploration and development programs; mining risks; community
protests; risks associated with foreign operations; governmental
and environmental regulation; the volatility of the Company's stock
price; and risks associated with the Company's currency, fuel and
by-product metal derivative strategies. For a more detailed
discussion of such risks and other factors that may affect the
Company's ability to achieve the expectations set forth in the
forward-looking statements contained in this news release, see the
AIF and MD&A filed on SEDAR at www.sedar.com and included in
the Form 40-F filed on EDGAR at www.sec.gov, as well as the
Company's other filings with the Canadian securities regulators and
the SEC. Other than as required by law, the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
Cautionary Note to Investors Concerning Estimates of
Measured and Indicated Mineral Resources
This news release uses the terms "measured mineral resources"
and "indicated mineral resources". Investors are advised that while
those terms are recognized and required by Canadian regulations,
the SEC does not recognize them. Investors are
cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into mineral
reserves.
Cautionary Note to Investors Concerning Estimates of
Inferred Mineral Resources
This news release also uses the term "inferred mineral
resources". Investors are advised that while this term is
recognized and required by Canadian regulations, the SEC does not
recognize it. "Inferred mineral resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that any part or all
of an inferred mineral resource exists, or is economically or
legally mineable.
Scientific and Technical Data
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Christian Provencher, Eng.,
Vice-President, Canada; relating
to Nunavut operations has been
approved by Dominique Girard, Eng., Vice-President Technical
Services and Nunavut Operations; relating to the Kittila operations
has been approved by Francis Brunet, Eng., Corporate Director
Mining; relating to Southern Business operations has been approved
by Tim Haldane, P.Eng., Senior
Vice-President, Operations – USA
and Latin America; and relating to
exploration has been approved by Alain Blackburn, Eng., Senior Vice-President,
Exploration and Guy Gosselin, Eng., Vice-President,
Exploration. Each of them is a "Qualified Person" for the
purposes of National Instrument 43-101 Standards of
Disclosure for Mineral Projects (''NI 43-101'').
The scientific and technical information relating to Agnico
Eagle's mineral reserves and mineral resources contained herein
(other than the Canadian Malartic mine) has been approved by Daniel
Doucet, Eng., Senior Corporate Director, Reserve Development; and
relating to mineral reserves and mineral resources at the Canadian
Malartic mine contained herein has been approved by Donald Gervais, P.Geo., Director of Technical
Services at CMC. Each of them is a "Qualified Person" for the
purposes of NI 43-101.
Cautionary Note To U.S. Investors - The SEC
permits U.S. mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. Agnico Eagle
reports mineral reserve and mineral resource estimates in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum Best Practice Guidelines for
Exploration and for Estimation of Mineral
Resources and Mineral Reserves, in accordance with NI
43-101. These standards are similar to those used by the
SEC's Industry Guide No. 7, as interpreted by Staff at the SEC
("Guide 7"). However, the definitions in NI 43-101 differ in
certain respects from those under Guide 7. Accordingly,
mineral reserve information contained herein may not be comparable
to similar information disclosed by U.S. companies. Under the
requirements of the SEC, mineralization may not be classified as a
"reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the reserve determination is made. A
"final" or "bankable" feasibility study is required to meet the
requirements to designate mineral reserves under Industry Guide
7. Agnico Eagle uses certain terms in this news release, such
as "measured", "indicated", "inferred", and "resources" that the
SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC.
In prior periods, mineral reserves and mineral resources for all
properties were typically estimated using historic three-year
average metals prices and foreign exchange rates in accordance with
the SEC guidelines. These guidelines require the use of
prices that reflect current economic conditions at the time of
mineral reserve determination, which the Staff of the SEC has
interpreted to mean historic three-year average prices. Given
the current lower commodity price environment, Agnico Eagle has
decided to use price assumptions that are below the three-year
averages. The assumptions used for the mineral reserve and
mineral resource estimates at all mines and advanced projects as of
December 31, 2015 (other than the
Canadian Malartic mine), reported by the Company on February 10, 2016, were $1,100 per ounce gold, $16.00 per ounce silver, $0.90 per pound zinc, $2.50 per pound copper, and US$/C$, Euro/US$ and
US$/MXP exchange rates for all mines and projects other than the
Lapa, Meadowbank and Creston Mascota mines and Santo Niño open pit
at Pinos Altos of 1.16, 1.20 and
14.00, respectively. Due to shorter mine life, the
assumptions used for the mineral reserve and mineral resource
estimates at the shorter-life mines (the Lapa, Meadowbank and
Creston Mascota mines and Santo Niño open pit) as of December 31, 2015, reported by the Company on
February 10, 2016, included the same
metal price assumptions, and US$/C$ and US$/MXP exchange rates of
1.30 and 16.00, respectively.
The assumptions used for the mineral reserve and mineral
resource estimates at the Canadian Malartic mine as of December 31, 2015, reported by the Company on
February 10, 2016, were $1,150 per ounce gold, a cut-off grade between
0.30 g/t and 0.33 g/t gold (depending on the deposit) and a US$/C$
exchange rate of 1.24.
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral resource.
The confidence in the modifying factors applying to a
probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all
of an inferred mineral resource exists, or is economically or
legally mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except where
noted)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
March 31,
|
|
|
2016
|
|
|
2015
|
Operating margin(i)by
mine:
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
LaRonde mine
|
$
|
48,055
|
|
$
|
30,015
|
|
Lapa mine
|
|
10,806
|
|
|
14,687
|
|
Goldex mine
|
|
22,184
|
|
|
19,253
|
|
Meadowbank mine
|
|
33,329
|
|
|
46,577
|
|
Canadian Malartic
mine(ii)
|
|
41,740
|
|
|
34,718
|
|
Kittila mine
|
|
24,086
|
|
|
27,415
|
Southern Business
|
|
|
|
|
|
|
Pinos Altos mine
|
|
35,820
|
|
|
34,652
|
|
Creston Mascota deposit at Pinos
Altos
|
|
8,989
|
|
|
8,409
|
|
La India mine
|
|
21,549
|
|
|
20,590
|
Total operating
margin(i)
|
|
246,558
|
|
|
236,316
|
Amortization of property, plant and
mine development
|
|
145,631
|
|
|
135,897
|
Exploration, corporate and other
|
|
73,730
|
|
|
43,706
|
Income before income and mining
taxes
|
|
27,197
|
|
|
56,713
|
Income and mining taxes (recovery)
expense
|
|
(591)
|
|
|
27,970
|
Net income for the period
|
$
|
27,788
|
|
$
|
28,743
|
Net income per share — basic
(US$)
|
$
|
0.13
|
|
$
|
0.13
|
Net income per share — diluted
(US$)
|
$
|
0.13
|
|
$
|
0.13
|
Cash flows:
|
|
|
|
|
|
Cash provided by operating
activities
|
$
|
145,704
|
|
$
|
143,455
|
Cash used in investing activities
|
$
|
(107,595)
|
|
$
|
(53,892)
|
Cash used in financing activities
|
$
|
(1,588)
|
|
$
|
(123,182)
|
Realized prices (US$):
|
|
|
|
|
|
Gold (per ounce)
|
$
|
1,192
|
|
$
|
1,202
|
Silver (per ounce)
|
$
|
15.09
|
|
$
|
17.02
|
Zinc (per tonne)
|
$
|
1,540
|
|
$
|
2,072
|
Copper (per tonne)
|
$
|
4,297
|
|
$
|
5,056
|
Payable
production(iii):
|
|
|
|
|
|
Gold (ounces):
|
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
|
LaRonde mine
|
|
75,337
|
|
|
58,893
|
|
|
Lapa mine
|
|
21,709
|
|
|
25,920
|
|
|
Goldex mine
|
|
32,340
|
|
|
29,250
|
|
|
Meadowbank mine
|
|
72,311
|
|
|
88,523
|
|
|
Canadian Malartic
mine(ii)
|
|
73,613
|
|
|
67,893
|
|
|
Kittila mine
|
|
48,127
|
|
|
44,654
|
|
Southern Business
|
|
|
|
|
|
|
|
Pinos Altos mine
|
|
48,117
|
|
|
50,106
|
|
|
Creston Mascota deposit at Pinos
Altos
|
|
11,551
|
|
|
12,448
|
|
|
La India mine
|
|
28,231
|
|
|
26,523
|
Total gold (ounces)
|
|
411,336
|
|
|
404,210
|
Silver (thousands of ounces):
|
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
|
LaRonde mine
|
|
247
|
|
|
198
|
|
|
Lapa mine
|
|
3
|
|
|
1
|
|
|
Meadowbank mine
|
|
43
|
|
|
96
|
|
|
Canadian Malartic
mine(ii)
|
|
77
|
|
|
72
|
|
|
Kittila mine
|
|
3
|
|
|
2
|
|
Southern Business
|
|
|
|
|
|
|
|
Pinos Altos mine
|
|
587
|
|
|
562
|
|
|
Creston Mascota deposit at Pinos
Altos
|
|
48
|
|
|
32
|
|
|
La India mine
|
|
117
|
|
|
69
|
Total silver (thousands of ounces)
|
|
1,125
|
|
|
1,032
|
Zinc (tonnes)
|
|
614
|
|
|
936
|
Copper (tonnes)
|
|
1,154
|
|
|
1,167
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable metal sold:
|
|
|
|
|
|
Gold (ounces):
|
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
|
LaRonde mine
|
|
75,257
|
|
|
60,943
|
|
|
Lapa mine
|
|
19,836
|
|
|
23,497
|
|
|
Goldex mine
|
|
31,955
|
|
|
27,907
|
|
|
Meadowbank mine
|
|
71,589
|
|
|
84,780
|
|
|
Canadian Malartic
mine(ii)(iv)
|
|
65,085
|
|
|
59,261
|
|
|
Kittila mine
|
|
50,725
|
|
|
48,982
|
|
Southern Business
|
|
|
|
|
|
|
|
Pinos Altos mine
|
|
43,224
|
|
|
41,433
|
|
|
Creston Mascota deposit at Pinos
Altos
|
|
11,845
|
|
|
11,399
|
|
|
La India mine
|
|
26,165
|
|
|
26,898
|
Total gold (ounces)
|
|
395,681
|
|
|
385,100
|
Silver (thousands of ounces):
|
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
|
LaRonde mine
|
|
232
|
|
|
205
|
|
|
Lapa mine
|
|
1
|
|
|
-
|
|
|
Meadowbank mine
|
|
43
|
|
|
98
|
|
|
Canadian Malartic
mine(ii)(iv)
|
|
73
|
|
|
54
|
|
|
Kittila mine
|
|
3
|
|
|
2
|
|
Southern Business
|
|
|
|
|
|
|
|
Pinos Altos mine
|
|
530
|
|
|
446
|
|
|
Creston Mascota deposit at Pinos
Altos
|
|
48
|
|
|
20
|
|
|
La India mine
|
|
86
|
|
|
63
|
Total silver (thousands of ounces):
|
|
1,016
|
|
|
888
|
Zinc (tonnes)
|
|
605
|
|
|
1,264
|
Copper (tonnes)
|
|
1,156
|
|
|
1,160
|
|
|
|
|
|
|
Total cash costs per ounce of gold produced
- co-product basis (US$)(v):
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
LaRonde mine
|
$
|
670
|
|
$
|
892
|
|
Lapa mine
|
|
668
|
|
|
568
|
|
Goldex mine
|
|
506
|
|
|
542
|
|
Meadowbank mine
|
|
797
|
|
|
674
|
|
Canadian Malartic
mine(ii)
|
|
572
|
|
|
649
|
|
Kittila mine
|
|
727
|
|
|
682
|
Southern Business
|
|
|
|
|
|
|
Pinos Altos mine
|
|
530
|
|
|
548
|
|
Creston Mascota deposit at Pinos
Altos
|
|
527
|
|
|
488
|
|
La India mine
|
|
424
|
|
|
461
|
Weighted average total cash costs per ounce of gold
produced
|
$
|
631
|
|
$
|
651
|
|
|
|
|
|
|
Total cash costs per ounce of gold produced
- by-product basis (US$)(v):
|
|
|
|
|
|
Northern Business
|
|
|
|
|
|
|
LaRonde mine
|
$
|
529
|
|
$
|
703
|
|
Lapa mine
|
|
668
|
|
|
568
|
|
Goldex mine
|
|
506
|
|
|
541
|
|
Meadowbank mine
|
|
788
|
|
|
655
|
|
Canadian Malartic
mine(ii)
|
|
557
|
|
|
632
|
|
Kittila mine
|
|
726
|
|
|
681
|
Southern Business
|
|
|
|
|
|
|
Pinos Altos mine
|
|
343
|
|
|
357
|
|
Creston Mascota deposit at Pinos
Altos
|
|
460
|
|
|
444
|
|
La India mine
|
|
360
|
|
|
418
|
Weighted average total cash costs per ounce of gold
produced
|
$
|
573
|
|
$
|
588
|
Notes:
|
|
|
(i)
|
Operating margin is calculated as revenues from
mining operations less production costs.
|
|
|
(ii)
|
On June 16, 2014, Agnico Eagle and Yamana
jointly acquired 100.0% of Osisko by way of a statutory plan of
arrangement (the "Arrangement"). As a result of the Arrangement,
Agnico Eagle and Yamana each indirectly own 50.0% of CMC and the
Partnership, which now holds the Canadian Malartic mine. The
information set out in this table reflects the Company's 50.0%
interest in the Canadian Malartic mine.
|
|
|
(iii)
|
Payable production (a non‑GAAP non-financial
performance measure) is the quantity of mineral produced during a
period contained in products that are or will be sold by the
Company, whether such products are sold during the period or held
as inventories at the end of the period.
|
|
|
(iv)
|
The Canadian Malartic mine's payable metal sold
excludes the 5.0% net smelter royalty transferred to Osisko Gold
Royalties Ltd., pursuant to
the Arrangement.
|
|
|
(v)
|
Total cash costs per ounce of gold produced is not a
recognized measure under IFRS and this data may not be comparable
to data reported by other gold producers. Total cash costs per
ounce of gold produced is reported on both a by‑product basis
(deducting by‑product metal revenues from production costs) and
co‑product basis (before by‑product metal revenues). Total cash
costs per ounce of gold produced on a by‑product basis is
calculated by adjusting production costs as recorded in the interim
condensed consolidated statements of income for by‑product metal
revenues, unsold concentrate inventory production costs, smelting,
refining and marketing charges and other adjustments, and then
dividing by the number of ounces of gold produced. Total cash costs
per ounce of gold produced on a co‑product basis is calculated in
the same manner as total cash costs per ounce of gold produced on a
by‑product basis except that no adjustment for by‑product metal
revenues is made. The calculation of total cash costs per ounce of
gold produced on a co‑product basis does not reflect a reduction in
production costs or smelting, refining and marketing charges
associated with the production and sale of by‑product metals. The
Company believes that these generally accepted industry measures
provide a realistic indication of operating performance and provide
useful comparison points between periods. Total cash costs per
ounce of gold produced is intended to provide information about the
cash generating capabilities of the Company's mining operations.
Management also uses these measures to monitor the performance of
the Company's mining operations. As market prices for gold are
quoted on a per ounce basis, using the total cash costs per ounce
of gold produced on a by‑product basis measure allows management to
assess a mine's cash generating capabilities at various gold
prices. Management is aware that these per ounce measures of
performance can be affected by fluctuations in exchange rates and,
in the case of total cash costs of gold produced on a by‑product
basis, by‑product metal prices. Management compensates for these
inherent limitations by using these measures in conjunction with
minesite costs per tonne as well as other data prepared in
accordance with IFRS. Management also performs sensitivity analyses
in order to quantify the effects of fluctuating metal prices and
exchange rates.
|
AGNICO EAGLE MINES LIMITED
|
CONSOLIDATED BALANCE SHEETS
|
(thousands of United States dollars, except share
amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
As at
March 31,
|
|
As at
December 31,
|
|
2016
|
|
2015
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
162,746
|
|
$
|
124,150
|
|
Short-term investments
|
|
5,209
|
|
|
7,444
|
|
Restricted cash
|
|
675
|
|
|
685
|
|
Trade receivables
|
|
5,641
|
|
|
7,714
|
|
Inventories
|
|
435,447
|
|
|
461,976
|
|
Income taxes recoverable
|
|
4,878
|
|
|
817
|
|
Available-for-sale securities
|
|
66,350
|
|
|
31,863
|
|
Fair value of derivative financial
instruments
|
|
4,520
|
|
|
87
|
|
Other current assets
|
|
186,850
|
|
|
194,689
|
Total current assets
|
|
872,316
|
|
|
829,425
|
Non-current assets:
|
|
|
|
|
|
|
Restricted cash
|
|
791
|
|
|
741
|
|
Goodwill
|
|
696,809
|
|
|
696,809
|
|
Property, plant and mine
development
|
|
5,069,152
|
|
|
5,088,967
|
|
Other assets
|
|
77,496
|
|
|
67,238
|
Total assets
|
$
|
6,716,564
|
|
$
|
6,683,180
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
|
202,158
|
|
$
|
243,786
|
|
Reclamation provision
|
|
6,795
|
|
|
6,245
|
|
Interest payable
|
|
22,107
|
|
|
14,526
|
|
Income taxes payable
|
|
5,189
|
|
|
14,852
|
|
Finance lease obligations
|
|
8,567
|
|
|
9,589
|
|
Current portion of long-term debt
|
|
15,419
|
|
|
14,451
|
|
Fair value of derivative financial
instruments
|
|
1,709
|
|
|
8,073
|
Total current liabilities
|
|
261,944
|
|
|
311,522
|
Non-current liabilities:
|
|
|
|
|
|
|
Long-term debt
|
|
1,064,750
|
|
|
1,118,187
|
|
Reclamation provision
|
|
311,069
|
|
|
276,299
|
|
Deferred income and mining tax
liabilities
|
|
789,437
|
|
|
802,114
|
|
Other liabilities
|
|
34,250
|
|
|
34,038
|
Total liabilities
|
|
2,461,450
|
|
|
2,542,160
|
EQUITY
|
|
|
|
|
|
|
Common shares:
|
|
|
|
|
|
|
|
Outstanding - 221,281,167common shares issued, less
802,915
|
|
|
|
|
|
|
|
shares held in trust
|
|
4,799,138
|
|
|
4,707,940
|
|
Stock options
|
|
203,582
|
|
|
216,232
|
|
Contributed surplus
|
|
37,254
|
|
|
37,254
|
|
Deficit
|
|
(813,517)
|
|
|
(823,734)
|
|
Accumulated other comprehensive
income
|
|
28,657
|
|
|
3,328
|
Total equity
|
|
4,255,114
|
|
|
4,141,020
|
Total liabilities and equity
|
$
|
6,716,564
|
|
$
|
6,683,180
|
AGNICO EAGLE MINES LIMITED
|
CONSOLIDATED STATEMENTS OF
INCOME
|
(thousands of United States dollars, except per
share amounts, IFRS basis)
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
|
|
|
REVENUES
|
|
|
|
Revenues from mining operations
|
$ 490,531
|
|
$ 483,596
|
|
|
|
|
COSTS, EXPENSES AND OTHER
INCOME
|
|
|
|
Production (i)
|
243,973
|
|
247,280
|
Exploration and corporate
development
|
28,385
|
|
16,651
|
Amortization of property, plant and mine
development
|
145,631
|
|
135,897
|
General and administrative
|
24,823
|
|
25,221
|
Impairment loss on available-for-sale
securities
|
-
|
|
685
|
Finance costs
|
17,801
|
|
19,712
|
(Gain) loss on derivative financial
instruments
|
(9,621)
|
|
8,576
|
Gain on sale of available-for-sale
securities
|
(119)
|
|
(21,049)
|
Environmental remediation
|
5,093
|
|
429
|
Foreign currency translation loss
(gain)
|
6,770
|
|
(11,690)
|
Other expenses
|
598
|
|
5,171
|
Income before income and mining
taxes
|
27,197
|
|
56,713
|
Income and mining taxes (recovery)
expense
|
(591)
|
|
27,970
|
Net income for the period
|
$ 27,788
|
|
$ 28,743
|
|
|
|
|
Net income per share - basic
|
$ 0.13
|
|
$ 0.13
|
Net income per share - diluted
|
$ 0.13
|
|
$ 0.13
|
|
|
|
|
Weighted average number of common shares outstanding
(in thousands):
|
|
|
|
Basic
|
219,681
|
|
214,566
|
Diluted
|
221,906
|
|
215,692
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
(i)
|
Exclusive of amortization, which is shown
separately.
|
AGNICO EAGLE MINES LIMITED
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(thousands of United States dollars, IFRS
basis)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
2016
|
|
2015
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
Net income for the period
|
$
|
27,788
|
|
$
|
28,743
|
Add (deduct) items not affecting
cash:
|
|
|
|
|
|
|
Amortization of property, plant and mine
development
|
|
145,631
|
|
|
135,897
|
|
Deferred income and mining taxes
|
|
(16,986)
|
|
|
19,300
|
|
Gain on sale of available-for-sale
securities
|
|
(119)
|
|
|
(21,049)
|
|
Stock-based compensation
|
|
9,786
|
|
|
11,718
|
|
Impairment loss on available-for-sale
securities
|
|
-
|
|
|
685
|
|
Foreign currency translation loss
(gain)
|
|
6,770
|
|
|
(11,690)
|
|
Other
|
|
(4,159)
|
|
|
13,536
|
Adjustment for settlement of reclamation
provision
|
|
(1,232)
|
|
|
(302)
|
Changes in non-cash working capital
balances:
|
|
|
|
|
|
|
Trade receivables
|
|
2,073
|
|
|
(1,484)
|
|
Income taxes
|
|
(13,724)
|
|
|
(24,063)
|
|
Inventories
|
|
24,611
|
|
|
10,412
|
|
Other current assets
|
|
4,020
|
|
|
(4,837)
|
|
Accounts payable and accrued
liabilities
|
|
(46,336)
|
|
|
(20,582)
|
|
Interest payable
|
|
7,581
|
|
|
7,171
|
Cash provided by operating
activities
|
|
145,704
|
|
|
143,455
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to property, plant and mine
development
|
|
(100,694)
|
|
|
(82,887)
|
Acquisitions, net of cash and cash equivalents
acquired
|
|
-
|
|
|
(7,000)
|
Net sales (purchases) of short-term
investments
|
|
2,235
|
|
|
(101)
|
Net proceeds from sale of available-for-sale
securities and other investments
|
|
299
|
|
|
37,668
|
Purchase of available-for-sale securities and other
investments
|
|
(9,445)
|
|
|
(5,275)
|
Decrease in restricted cash
|
|
10
|
|
|
3,703
|
Cash used in investing activities
|
|
(107,595)
|
|
|
(53,892)
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
Dividends paid
|
|
(14,846)
|
|
|
(14,775)
|
Repayment of finance lease
obligations
|
|
(2,514)
|
|
|
(8,405)
|
Proceeds from long-term debt
|
|
75,000
|
|
|
-
|
Repayment of long-term debt
|
|
(130,000)
|
|
|
(100,000)
|
Repurchase of common shares for stock-based
compensation plans
|
|
(14,895)
|
|
|
(10,642)
|
Proceeds on exercise of stock
options
|
|
64,424
|
|
|
8,223
|
Common shares issued
|
|
21,243
|
|
|
2,417
|
Cash used in financing activities
|
|
(1,588)
|
|
|
(123,182)
|
Effect of exchange rate changes on cash and cash
equivalents
|
|
2,075
|
|
|
(5,912)
|
Net increase (decrease) in cash and cash
equivalents during the period
|
|
38,596
|
|
|
(39,531)
|
Cash and cash equivalents, beginning of
period
|
|
124,150
|
|
|
177,537
|
Cash and cash equivalents, end of
period
|
$
|
162,746
|
|
$
|
138,006
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION
|
|
|
|
|
|
Interest paid
|
$
|
8,880
|
|
$
|
11,081
|
|
|
|
|
|
|
Income and mining taxes paid
|
$
|
53,317
|
|
$
|
37,947
|
AGNICO EAGLE MINES LIMITED
|
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE
MEASURES
|
(thousands of United States dollars, except where
noted)
|
(Unaudited)
|
|
|
|
|
|
|
Total Production Costs by
Mine
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2016
|
|
March 31, 2015
|
(thousands of United States
dollars)
|
|
|
|
|
|
LaRonde mine
|
$
|
45,854
|
|
$
|
45,865
|
Lapa mine
|
|
12,784
|
|
|
13,985
|
Goldex mine
|
|
15,732
|
|
|
14,866
|
Meadowbank mine
|
|
52,210
|
|
|
57,096
|
Canadian Malartic
mine(i)
|
|
40,814
|
|
|
41,186
|
Kittila mine
|
|
36,027
|
|
|
31,999
|
Pinos Altos mine
|
|
23,856
|
|
|
24,212
|
Creston Mascota deposit at Pinos
Altos
|
|
5,781
|
|
|
5,606
|
La India mine
|
|
10,915
|
|
|
12,465
|
Production costs per the interim condensed
consolidated statements of income
|
$
|
243,973
|
|
$
|
247,280
|
|
|
|
|
|
|
Reconciliation of Production Costs to Total Cash
Costs per Ounce of Gold Produced(ii)by Mine and
Reconciliation of
|
Production Costs to Minesite Costs per
Tonne(iii)by Mine
|
|
|
|
|
|
|
LaRonde Mine - Total Cash Costs per Ounce of Gold
Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
45,854
|
|
$
|
45,865
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
4,619
|
|
|
6,678
|
Cash operating costs (co-product
basis)
|
$
|
50,473
|
|
$
|
52,543
|
|
By-product metal revenues
|
|
(10,646)
|
|
|
(11,134)
|
Cash operating costs (by-product
basis)
|
$
|
39,827
|
|
$
|
41,409
|
Gold production (ounces)
|
|
75,337
|
|
|
58,893
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
670
|
|
$
|
892
|
|
By-product basis
|
$
|
529
|
|
$
|
703
|
|
|
|
|
|
|
LaRonde Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
45,854
|
|
$
|
45,865
|
Inventory and other
adjustments(v)
|
|
(2,357)
|
|
|
866
|
Minesite operating costs
|
$
|
43,497
|
|
$
|
46,731
|
Minesite operating costs (thousands of
C$)
|
C$
|
59,228
|
|
C$
|
57,789
|
Tonnes of ore milled (thousands of
tonnes)
|
|
577
|
|
|
558
|
Minesite costs per tonne
(C$)(iii)
|
C$
|
103
|
|
C$
|
104
|
|
|
|
|
|
|
Lapa Mine - Total Cash Costs per Ounce of Gold
Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
12,784
|
|
$
|
13,985
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
1,727
|
|
|
749
|
Cash operating costs (co-product
basis)
|
$
|
14,511
|
|
$
|
14,734
|
|
By-product metal revenues
|
|
(13)
|
|
|
(17)
|
Cash operating costs (by-product
basis)
|
$
|
14,498
|
|
$
|
14,717
|
Gold production (ounces)
|
|
21,709
|
|
|
25,920
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
668
|
|
$
|
568
|
|
By-product basis
|
$
|
668
|
|
$
|
568
|
|
|
|
|
|
|
Lapa Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
12,784
|
|
$
|
13,985
|
Inventory and other
adjustments(v)
|
|
1,559
|
|
|
548
|
Minesite operating costs
|
$
|
14,343
|
|
$
|
14,533
|
Minesite operating costs (thousands of
C$)
|
C$
|
19,481
|
|
C$
|
18,077
|
Tonnes of ore milled (thousands of
tonnes)
|
|
161
|
|
|
152
|
Minesite costs per tonne
(C$)(iii)
|
C$
|
121
|
|
C$
|
119
|
|
|
|
|
|
|
Goldex Mine - Total Cash Costs per Ounce of Gold
Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
15,732
|
|
$
|
14,866
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
624
|
|
|
973
|
Cash operating costs (co-product
basis)
|
$
|
16,356
|
|
$
|
15,839
|
|
By-product metal revenues
|
|
(6)
|
|
|
(7)
|
Cash operating costs (by-product
basis)
|
$
|
16,350
|
|
$
|
15,832
|
Gold production (ounces)
|
|
32,340
|
|
|
29,250
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
506
|
|
$
|
542
|
|
By-product basis
|
$
|
506
|
|
$
|
541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
15,732
|
|
$
|
14,866
|
Inventory and other
adjustments(v)
|
|
351
|
|
|
761
|
Minesite operating costs
|
$
|
16,083
|
|
$
|
15,627
|
Minesite operating costs (thousands of
C$)
|
C$
|
21,706
|
|
C$
|
19,317
|
Tonnes of ore milled (thousands of
tonnes)
|
|
636
|
|
|
566
|
Minesite costs per tonne
(C$)(iii)
|
C$
|
34
|
|
C$
|
34
|
|
|
|
|
|
|
Meadowbank Mine - Total Cash Costs per Ounce of
Gold Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
52,210
|
|
$
|
57,096
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
5,446
|
|
|
2,541
|
Cash operating costs (co-product
basis)
|
$
|
57,656
|
|
$
|
59,637
|
|
By-product metal revenues
|
|
(659)
|
|
|
(1,689)
|
Cash operating costs (by-product
basis)
|
$
|
56,997
|
|
$
|
57,948
|
Gold production (ounces)
|
|
72,311
|
|
|
88,523
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
797
|
|
$
|
674
|
|
By-product basis
|
$
|
788
|
|
$
|
655
|
|
|
|
|
|
|
Meadowbank Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
52,210
|
|
$
|
57,096
|
Inventory and other
adjustments(v)
|
|
2,758
|
|
|
1,694
|
Minesite operating costs
|
$
|
54,968
|
|
$
|
58,790
|
Minesite operating costs (thousands of
C$)
|
C$
|
73,058
|
|
C$
|
70,627
|
Tonnes of ore milled (thousands of
tonnes)
|
|
946
|
|
|
990
|
Minesite costs per tonne
(C$)(iii)
|
C$
|
77
|
|
C$
|
71
|
|
|
|
|
|
|
Canadian Malartic Mine - Total Cash Costs per
Ounce of Gold Produced(i)(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
40,814
|
|
$
|
41,186
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
1,309
|
|
|
2,851
|
Cash operating costs (co-product
basis)
|
$
|
42,123
|
|
$
|
44,037
|
|
By-product metal revenues
|
|
(1,095)
|
|
|
(1,142)
|
Cash operating costs (by-product
basis)
|
$
|
41,028
|
|
$
|
42,895
|
Gold production (ounces)
|
|
73,613
|
|
|
67,893
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
572
|
|
$
|
649
|
|
By-product basis
|
$
|
557
|
|
$
|
632
|
|
|
|
|
|
|
Canadian Malartic Mine - Minesite Costs per
Tonne(i)(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
40,814
|
|
$
|
41,186
|
Inventory and other
adjustments(v)
|
|
1,076
|
|
|
2,605
|
Minesite operating costs
|
$
|
41,890
|
|
$
|
43,791
|
Minesite operating costs (thousands of
C$)
|
C$
|
57,545
|
|
C$
|
54,320
|
Tonnes of ore milled (thousands of
tonnes)
|
|
2,380
|
|
|
2,339
|
Minesite costs per tonne
(C$)(iii)
|
C$
|
24
|
|
C$
|
23
|
|
|
|
|
|
|
Kittila Mine - Total Cash Costs per Ounce of Gold
Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
36,027
|
|
$
|
31,999
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
(1,024)
|
|
|
(1,543)
|
Cash operating costs (co-product
basis)
|
$
|
35,003
|
|
$
|
30,456
|
|
By-product metal revenues
|
|
(47)
|
|
|
(35)
|
Cash operating costs (by-product
basis)
|
$
|
34,956
|
|
$
|
30,421
|
Gold production (ounces)
|
|
48,127
|
|
|
44,654
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
727
|
|
$
|
682
|
|
By-product basis
|
$
|
726
|
|
$
|
681
|
|
|
|
|
|
|
Kittila Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
36,027
|
|
$
|
31,999
|
Inventory and other
adjustments(v)
|
|
(1,197)
|
|
|
(1,659)
|
Minesite operating costs
|
$
|
34,830
|
|
$
|
30,340
|
Minesite operating costs (thousands of
€)
|
€
|
31,109
|
|
€
|
26,714
|
Tonnes of ore milled (thousands of
tonnes)
|
|
432
|
|
|
345
|
Minesite costs per tonne
(€)(iii)
|
€
|
72
|
|
€
|
77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine - Total Cash Costs per Ounce of
Gold Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
23,856
|
|
$
|
24,212
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
1,635
|
|
|
3,244
|
Cash operating costs (co-product
basis)
|
$
|
25,491
|
|
$
|
27,456
|
|
By-product metal revenues
|
|
(8,972)
|
|
|
(9,579)
|
Cash operating costs (by-product
basis)
|
$
|
16,519
|
|
$
|
17,877
|
Gold production (ounces)
|
|
48,117
|
|
|
50,106
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
530
|
|
$
|
548
|
|
By-product basis
|
$
|
343
|
|
$
|
357
|
|
|
|
|
|
|
Pinos Altos Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
23,856
|
|
$
|
24,212
|
Inventory and other
adjustments(v)
|
|
1,296
|
|
|
2,681
|
Minesite operating costs
|
$
|
25,152
|
|
$
|
26,893
|
Tonnes of ore processed (thousands of
tonnes)
|
|
502
|
|
|
584
|
Minesite costs per tonne
(US$)(iii)
|
$
|
50
|
|
$
|
46
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos Altos - Total
Cash Costs per Ounce of Gold
Produced(ii)
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
5,781
|
|
$
|
5,606
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
310
|
|
|
467
|
Cash operating costs (co-product
basis)
|
$
|
6,091
|
|
$
|
6,073
|
|
By-product metal revenues
|
|
(782)
|
|
|
(547)
|
Cash operating costs (by-product
basis)
|
$
|
5,309
|
|
$
|
5,526
|
Gold production (ounces)
|
|
11,551
|
|
|
12,448
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
527
|
|
$
|
488
|
|
By-product basis
|
$
|
460
|
|
$
|
444
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos Altos - Minesite
Costs per Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
5,781
|
|
$
|
5,606
|
Inventory and other
adjustments(v)
|
|
195
|
|
|
399
|
Minesite operating costs
|
$
|
5,976
|
|
$
|
6,005
|
Tonnes of ore processed (thousands of
tonnes)
|
|
516
|
|
|
527
|
Minesite costs per tonne
(US$)(iii)
|
$
|
12
|
|
$
|
11
|
|
|
|
|
|
|
La India Mine - Total Cash Costs per Ounce of Gold
Produced(ii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
10,915
|
|
$
|
12,465
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
|
1,054
|
|
|
(245)
|
Cash operating costs (co-product
basis)
|
$
|
11,969
|
|
$
|
12,220
|
|
By-product metal revenues
|
|
(1,796)
|
|
|
(1,132)
|
Cash operating costs (by-product
basis)
|
$
|
10,173
|
|
$
|
11,088
|
Gold production (ounces)
|
|
28,231
|
|
|
26,523
|
Total cash costs per ounce of gold produced ($
per ounce)(ii):
|
|
|
|
|
|
|
Co-product basis
|
$
|
424
|
|
$
|
461
|
|
By-product basis
|
$
|
360
|
|
$
|
418
|
|
|
|
|
|
|
La India Mine - Minesite Costs per
Tonne(iii)
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(thousands of United States dollars, except as
noted)
|
March 31, 2016
|
|
March 31, 2015
|
Production costs
|
$
|
10,915
|
|
$
|
12,465
|
Inventory and other
adjustments(v)
|
|
819
|
|
|
(409)
|
Minesite operating costs
|
$
|
11,734
|
|
$
|
12,056
|
Tonnes of ore processed (thousands of
tonnes)
|
|
1,396
|
|
|
1,378
|
Minesite costs per tonne
(US$)(iii)
|
$
|
8
|
|
$
|
9
|
Notes:
|
(i)
|
On June 16, 2014, Agnico Eagle and Yamana
jointly acquired 100.0% of Osisko by way of the Arrangement. As a
result of the Arrangement, Agnico Eagle and Yamana each indirectly
own 50.0% of CMC and the Partnership, which now holds the Canadian
Malartic mine. The information set out in this table reflects the
Company's 50.0% interest in the Canadian
Malartic mine.
|
|
|
(ii)
|
Total cash costs per ounce of gold produced is not a
recognized measure under IFRS and this data may not be comparable
to data reported by other gold producers. Total cash costs per
ounce of gold produced is reported on both a by‑product basis
(deducting by‑product metal revenues from production costs) and
co‑product basis (before by‑product metal revenues). Total cash
costs per ounce of gold produced on a by‑product basis is
calculated by adjusting production costs as recorded in the interim
condensed consolidated statements of income for by‑product metal
revenues, unsold concentrate inventory production costs, smelting,
refining and marketing charges and other adjustments, and then
dividing by the number of ounces of gold produced. Total cash costs
per ounce of gold produced on a co‑product basis is calculated in
the same manner as total cash costs per ounce of gold produced on a
by‑product basis except that no adjustment for by‑product metal
revenues is made. The calculation of total cash costs per ounce of
gold produced on a co‑product basis does not reflect a reduction in
production costs or smelting, refining and marketing charges
associated with the production and sale of by‑product metals. The
Company believes that these generally accepted industry measures
provide a realistic indication of operating performance and provide
useful comparison points between periods. Total cash costs per
ounce of gold produced is intended to provide information about the
cash generating capabilities of the Company's mining operations.
Management also uses these measures to monitor the performance of
the Company's mining operations. As market prices for gold are
quoted on a per ounce basis, using the total cash costs per ounce
of gold produced on a by‑product basis measure allows management to
assess a mine's cash generating capabilities at various gold
prices. Management is aware that these per ounce measures of
performance can be affected by fluctuations in exchange rates and,
in the case of total cash costs of gold produced on a by‑product
basis, by‑product metal prices. Management compensates for these
inherent limitations by using these measures in conjunction with
minesite costs per tonne (discussed below) as well as other data
prepared in accordance with IFRS. Management also performs
sensitivity analyses in order to quantify the effects of
fluctuating metal prices and exchange rates.
|
|
|
(iii)
|
Minesite costs per tonne is not a recognized measure
under IFRS and this data may not be comparable to data reported by
other gold producers. This measure is calculated by adjusting
production costs as shown in the interim condensed consolidated
statements of income for unsold concentrate inventory production
costs, and then dividing by tonnes of ore milled. As the total cash
costs per ounce of gold produced measure can be affected by
fluctuations in by‑product metal prices and exchange rates,
management believes that the minesite costs per tonne measure
provides additional information regarding the performance of mining
operations, eliminating the impact of varying production levels.
Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated based
on the net realizable value of each tonne mined, in order to be
economically viable the estimated revenue on a per tonne basis must
be in excess of the minesite costs per tonne. Management is aware
that this per tonne measure of performance can be impacted by
fluctuations in processing levels and compensates for this inherent
limitation by using this measure in conjunction with production
costs prepared in accordance with IFRS.
|
|
|
(iv)
|
Under the Company's revenue recognition policy,
revenue is recognized on concentrates when legal title and risk is
transferred. As total cash costs per ounce of gold produced are
calculated on a production basis, an inventory adjustment is made
to reflect the sales margin on the portion of concentrate
production not yet recognized as revenue. Other adjustments include
the addition of smelting, refining and marketing charges to
production costs.
|
|
|
(v)
|
This inventory and other adjustment reflects
production costs associated with unsold
concentrates.
|
Reconciliation of Production Costs to All-in
Sustaining Costs per Ounce of Gold Produced
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
(United States dollars per ounce of gold produced,
except where noted)
|
|
|
March 31, 2016
|
|
March 31, 2015
|
|
|
|
|
|
|
Production costs per the interim condensed
consolidated statements of income
(thousands of United States
dollars)
|
|
$
|
243,973
|
$
|
247,280
|
Gold production (ounces)
|
|
|
411,336
|
|
404,210
|
Production costs per ounce of gold
production
|
|
$
|
593
|
$
|
612
|
Adjustments:
|
|
|
|
|
|
|
Inventory and other
adjustments(i)
|
|
|
38
|
|
39
|
Total cash costs per ounce of gold produced
(co-product basis)(ii)
|
|
$
|
631
|
$
|
651
|
|
By-product metal revenues
|
|
|
(58)
|
|
(63)
|
Total cash costs per ounce of gold produced
(by-product basis)(ii)
|
|
$
|
573
|
$
|
588
|
Adjustments:
|
|
|
|
|
|
|
Sustaining capital expenditures (including
capitalized exploration)
|
|
|
161
|
|
150
|
|
General and administrative expenses (including stock
options)
|
|
|
60
|
|
63
|
|
Non-cash reclamation provision and
other
|
|
|
3
|
|
3
|
All-in sustaining costs per ounce of gold produced
(by-product basis)
|
|
$
|
797
|
$
|
804
|
|
By-product metal revenues
|
|
|
58
|
|
63
|
All-in sustaining costs per ounce of gold produced
(co-product basis)
|
|
$
|
855
|
$
|
867
|
Notes:
|
(i)
|
Under the Company's revenue recognition policy,
revenue is recognized on concentrates when legal title and risk is
transferred. As total cash costs per ounce of gold produced are
calculated on a production basis, this inventory adjustment
reflects the sales margin on the portion of concentrate production
not yet recognized as revenue.
|
|
|
(ii)
|
Total cash costs per ounce of gold produced is
not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. Total cash
costs per ounce of gold produced is reported on both a by-product
basis (deducting by-product metal revenues from production costs)
and co-product basis (before by-product metal revenues). Total cash
costs per ounce of gold produced on a by-product basis is
calculated by adjusting production costs as recorded in the interim
condensed consolidated statements of income for by-product metal
revenues, unsold concentrate inventory production costs, smelting,
refining and marketing charges and other adjustments, and then
dividing by the number of ounces of gold produced. Total cash costs
per ounce of gold produced on a co-product basis is calculated in
the same manner as total cash costs per ounce of gold produced on a
by-product basis except that no adjustment for by-product metal
revenues is made. Accordingly, the calculation of total cash costs
per ounce of gold produced on a co-product basis does not reflect a
reduction in production costs or smelting, refining and marketing
charges associated with the production and sale of by-product
metals. The Company believes that these generally accepted
industry measures provide a realistic indication of operating
performance and provide useful comparison points between periods.
Total cash costs per ounce of gold produced is intended to provide
information about the cash generating capabilities of the Company's
mining operations. Management also uses these measures to monitor
the performance of the Company's mining operations. As market
prices for gold are quoted on a per ounce basis, using the total
cash costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash generating capabilities
at various gold prices. Management is aware that these per ounce
measures of performance can be affected by fluctuations in exchange
rates and, in the case of total cash costs of gold produced on a
by-product basis, by-product metal prices. Management compensates
for these inherent limitations by using these measures in
conjunction with minesite costs per tonne as well as other data
prepared in accordance with IFRS. Management also performs
sensitivity analyses in order to quantify the effects of
fluctuating metal prices and exchange rates.
|
SOURCE Agnico Eagle Mines Limited