(All amounts expressed in U.S. dollars unless otherwise
noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, Feb. 11, 2015 /CNW/ - Agnico Eagle Mines
Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company")
today reported a quarterly net loss of $21.3 million, or a net loss of
$0.10 per share for the fourth
quarter of 2014. This result includes a non-cash foreign
currency translation loss on deferred tax liabilities of
$20.3 million ($0.10 per share), various mark-to-market
adjustment losses of $5.0 million
($0.02 per share), unrealized losses
on financial instruments of $7.7
million ($0.04 per share),
non-cash foreign currency translation losses of $7.0 million ($0.03
per share), non-cash stock option expense of $3.5 million ($0.02
per share) and non-recurring gains of $5.6
million ($0.03). Excluding
these items would result in adjusted net income of $16.6 million ($0.08 per share) for the fourth quarter of
2014. In the fourth quarter of 2013, the Company reported a
net loss of $780.3 million or
a net loss of $4.49 per share,
which included a $1.0 billion
impairment loss.
Fourth quarter 2014 cash provided by operating activities was
$164.0 million ($152.2 million before changes in non-cash
components of working capital), this compares to cash provided by
operating activities of $140.8
million in the fourth quarter of 2013 ($135.8 million before changes in non-cash
components of working capital). The slight increase in cash
flow before changes in working capital during the current period
was largely due to higher production which more than offset lower
realized gold and silver prices (down 10% and 23% respectively,
period over period).
"Our operations continue to perform well, which allowed us to
exceed both our production and cost guidance for the third year in
a row. With projected year-over-year production growth of
12%, lower fuel costs and weaker local currencies anticipated in
Canada, Mexico and Finland, we expect to have another strong year
in 2015", said Sean Boyd, President
and Chief Executive Officer. "It should also be an exciting
year on the exploration front, with drilling activities underway at
most of our mines, and significant programs planned at our Amaruq
project in Nunavut and El Barqueno
project in Mexico. Given the
strong potential to expand the initial 1.5 million ounce resource
at Amaruq, and the recent positive permitting news at Meliadine, we
expect to unlock additional value from our Nunavut platform in 2015", added Mr. Boyd.
Fourth quarter, full year 2014 and recent highlights
include:
- Record annual gold production - Payable gold
production1 in 2014 was 1,429,288 ounces at total cash
costs2 per ounce on a by-product basis of $637, compared to guidance of 1,400,000 ounces at
total cash costs per ounce on a by-product basis of $663. All-in sustaining costs3
("AISC") for 2014 was $954 per ounce
on a by-product basis, which is below the previous 2014 guidance of
$990 per ounce on a by-product
basis.
- Record fourth quarter production - Payable
production in Q4 2014 was 387,538 ounces of gold at total cash
costs per ounce on a by-product basis of $662
- 2015 guidance maintained - Production for 2015 is
expected to be approximately 1.6 million ounces of gold with total
cash costs on a by-product basis of $610 to
$630 per ounce. AISC are forecast to be approximately
$880 to $900 per ounce
- Year-over-year increase in reserves and resources - With
the acquisition of Osisko Mining Corporation, reserves at year end
2014 were 20.0 million ounces compared to 16.9 million ounces at
year end 2013. Measured and indicated resources and inferred
resources also increased by approximately 56% and 33%,
respectively, over the 2013 period
- Continued focus on reserve quality and improved grades -
Increased gold reserve grades at LaRonde (5.20 g/t versus 5.00
g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos (3.01 g/t versus 2.84 g/t)
- Increased reserves, resources and positive permitting
progress in Nunavut - Initial
inferred resource of 1.5 million ounces (6.6 million tonnes grading
7.07 g/t gold) reported at Amaruq project. Meliadine reserves
increased by approximately 500,000 ounces to 3.3 million ounces (at
a grade of 7.44 g/t gold), and the Project Certificate setting out
the terms on which the project can proceed is expected within the
next two months
- Proceeds from sale of Probe Mines shares used to reduce
debt - In Q1 2015, $30 million
was repaid on the credit line.
- A quarterly dividend of $0.08
per share 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 -
Reconciliation of Production Costs to Total Cash Costs per Ounce of
Gold Produced by Mine" 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 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 -
Reconciliation of Production Costs to All-In Sustaining costs"
below. The Company calculates all-in sustaining costs per ounce of
gold produced as the aggregate of total cash costs 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. The Company's methodology for calculating
all-in sustaining costs may not be similar to the methodology used
by other producers that disclose all-in sustaining costs. See "Note
Regarding Certain Measures of Performance". The Company may
change the methodology it uses to calculate all-in sustaining costs
in the future, including in response to the adoption of formal
industry guidance regarding this measure by the World Gold
Council. |
New Three Year Guidance Plan - Stable Production and Cost
Profile
Highlights from the new production and cost guidance for 2015 to
2017 include:
- In 2015, payable gold production is expected to be
approximately 1,600,000 ounces (a 12% increase from 2014 levels),
while total cash costs per ounce on a by-product basis are expected
to be $610 to $630. Previous
guidance for 2015 (from the February
2014 forecast) was 1,250,000 ounces at a total cash cost on
a by-product basis of less than $678
per ounce
- Consolidated AISC for 2015 are expected to be approximately
$880 to 900 per ounce. In 2016
and 2017, the goal is to further reduce the AISC below the forecast
for 2015
- The estimated production level in 2017 is currently forecast to
be approximately 1.5 million ounces. However, studies are
underway at the following projects and may further enhance the
Company's production profile:
-
- Expansion of the Vault Deposit at Meadowbank
- Development of the Deep Zone at Goldex
- Production from Akasaba West at Goldex
- Rimpi Zone Development at Kittila
- Development of the Kuotko satellite deposit at Kittila
- The Amaruq and Meliadine projects in Nunavut have the potential to add to the
Company's production profile in 2019 and beyond
Fourth Quarter and Full Year 2014 Financial and Production
Highlights
For the full year 2014, the Company recorded net income of
$83.0 million, or $0.43 per share. In 2013, Agnico Eagle
recorded a net loss of $686.7
million, or a net loss of $3.97 per share (a $1.0
billion impairment loss on mining assets and goodwill was
recorded in 2013 as a result of the sharp decline in the market
price of gold). Compared with the prior year, 2014 earnings
were positively affected by higher gold production, favourable
foreign exchange rate movements, the acquisition of the Canadian
Malartic mine, the ramp up of the Goldex Mine and the start-up of
the new La India mine.
For 2014, cash provided by operating activities was $668.3 million ($628.6
million before changes in non-cash components of working
capital). This represents an increase over 2013, when
cash provided by operating activities totaled $481.0 million ($559.3
million before changes in non-cash components of working
capital). The increase was primarily due to significantly
higher gold production in 2014 resulting from the acquisition of
the Canadian Malartic mine.
In the fourth quarter of 2014, strong operational performance
continued at the Company's mines, which led to record quarterly and
annual gold production.
Payable gold production in the fourth quarter of 2014 was a
record 387,538 ounces compared to 322,443 ounces in the fourth
quarter of 2013. 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 fourth
quarter of 2014 were $662 versus
$591 per ounce for the fourth quarter
2013. The increase in total cash costs per ounce on a
by-product basis in the fourth quarter of 2014 is mainly due to
lower production levels at the Meadowbank mine (record quarterly
gold production was realized in the fourth quarter of 2013), the
inclusion of Canadian Malartic production (at slightly higher
costs), lower mill recoveries at Kittila and lower by-product
metals production and revenue.
For the fourth straight year, Agnico Eagle has reported record
annual gold production. The Company's payable gold production for
the full year 2014 was 1,429,288 ounces at total cash costs per
ounce on a by-product basis of $637. This compares to the full year 2013
level of 1,099,335 ounces at total cash costs per ounce on a
by-product basis of $648. The
improvement in gold production in 2014 was a result of strong
operating results from all of the mines, particularly LaRonde and
Meadowbank, the ramp up of the Goldex and La India mines and the
acquisition of the Canadian Malartic mine. The decrease in
total cash costs per ounce on a by-product basis in 2014 was
primarily due to strong cost control initiatives at all of the
mines, the positive impact of foreign exchange and higher gold
production for 2014.
AISC for 2014 was $954 per ounce
on a by-product basis, which is below the previous 2014 guidance of
$990 per ounce on a by-product basis.
The lower AISC is primarily due to lower than forecast total cash
costs per ounce on a by-product basis in 2014.
Quarterly Dividend Declared
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.08 per common share,
payable on March 16, 2015 to
shareholders of record as of March 2,
2015. Agnico Eagle has now declared a cash dividend
every year since 1983.
Expected Dividend Record and Payment Dates for the Remainder of
2015
Record Date |
Payment Date |
March 2* |
March 16* |
June 1 |
June 15 |
September 1 |
September 15 |
December 1 |
December 15 |
*Declared
Dividend Reinvestment Plan
Please follow the link below for information on the Company's
dividend reinvestment program. Dividend Reinvestment Plan
Conversion to International Financial Reporting
Standards
The Company adopted International Financial Reporting Standards
("IFRS") as of July 1, 2014 to
enhance the comparability of its financial statements to the
Company's peers within the mining industry. Prior to this
conversion financial reporting was under US GAAP. Financial
results herein, including those for prior periods, have been
calculated in accordance with IFRS.
Additional disclosure regarding the IFRS conversion will be
included in the Company's Management's Discussion and Analysis
expected to be filed in late March
2015 in respect of the year ended December 31, 2014.
Conference Call Tomorrow
The Company's senior management will host a conference call on
Thursday, February 12, 2015 at
11:00 AM (E.S.T.) to discuss
financial and operating results.
Via Webcast:
A live audio webcast of the meeting will be available on the
Company's website 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 8252919. The conference call replay will expire on
March 15, 2015 at 2:00 PM (E.S.T.). The webcast along with
presentation slides will be archived for 180 days on
www.agnicoeagle.com.
Liquidity - Existing Cash and Credit Facilities Provide
Flexibility; Operations Expected to Generate Net Free Cash
Flow
Cash and cash equivalents and short term investments increased
to $182.2 million at December 31, 2014, from the September 30, 2014 balance of $165.6 million.
Capital expenditures in the fourth quarter of 2014 were
$133.4 million including $26.0 million at Kittila, $23.4 million at LaRonde, $17.7 million at Pinos
Altos, $17.4 million at
Canadian Malartic, $16.2 million at
Meliadine, $12.2 million at
Meadowbank, $10.6 million at Goldex,
$4.2 million at Lapa, $2.9 million at Creston Mascota, $2.6 million at La India, and $0.2 million on other Canadian projects.
For the full year 2014, capital expenditures totaled $475.4 million, which was below expected levels
of $499 million announced in the
third quarter news release on October 29,
2014. This decrease in capital spending is a
reflection of capital and cost reduction initiatives that have been
ongoing through the second half of 2014.
As of December 31, 2014, the
Company had drawn down $500 million
on its credit lines. This results in available lines of
approximately $700 million.
On January 21, 2015, Agnico Eagle
entered into an agreement to sell a portion of its equity holdings
in Probe Mines Limited to Goldcorp Inc. Proceeds from this
sale were used to make a $30 million
repayment on the credit lines on February 9,
2015.
Three Year Guidance Plan Outlines a Stable Production and
Cost Profile
The Company is announcing its production and cost guidance for
the three-year period of 2015 through 2017. Anticipated
production in 2015 is expected to increase by approximately 12%
from 2014 levels.
In 2015, payable gold production is expected to be approximately
1,600,000 ounces. Total cash costs per ounce on a by-product
basis in 2015 are expected to be in the range of $610 to $630. Cash costs are expected to be
lower in the second half of 2015 as a result of slightly higher
production. Previous guidance for 2015 (from the February 2014 forecast), which did not include
the Canadian Malartic mine, was 1,250,000 ounces at a total cash
cost on a by-product basis of approximately $678 per ounce.
2015
Commodity and currency price
assumptions |
|
|
|
|
|
|
Approximate impact on
total cash costs per ounce |
Silver ($/oz) |
18 |
|
|
|
|
|
|
$1 / oz change in silver price |
$2 |
Copper ($/mt) |
6,614 |
|
|
|
|
|
|
10% change in copper price |
n.a. |
Zinc ($/mt) |
2,000 |
|
|
|
|
|
|
10% change in zinc price |
n.a. |
Diesel (C$/ltr)
US$/C$ |
0.95
1.20 |
|
|
|
|
|
|
10% change in diesel price
1.0% change in US$/C$ |
$5
$5 |
EURO$/US$ |
1.18 |
|
|
|
|
|
|
1.0% change in Euro$/US$ |
$1 |
US$/MXP |
12.75 |
|
|
|
|
|
|
1,000 bps peso change in US$/MXP |
$1 |
LaRonde, Kittila, La India and Canadian Malartic are Key
Production Growth Drivers Over the Next Three Years
At LaRonde, commissioning of the cooling plant in 2014 had a
positive impact on operating flexibility and production at the
mine. With ongoing maturity of the mining fronts in the
deeper portions of the mine, and a gradual increase in the grade
towards the reserve grade of 5.2 g/t gold, production levels are
expected to steadily increase through 2017 and beyond.
With the completion of the mill expansion in 2014, production at
Kittila is expected to increase significantly. A priority focus at
Kittila will be on developing the Rimpi zone through a ramp system
to provide additional feed to the mill and enhance Kittila's
production profile. Agnico Eagle is also evaluating the
nearby Kuotko deposit (approximately 15 kilometers to the north) as
potential open pit satellite feed for the Kittila mill.
In 2014, La India completed its ramp-up to full design capacity
and is expected to maintain production at an annual rate of
approximately 90,000 ounces over the next three years.
Initial studies are underway to evaluate the potential to expand
future production at La India
By the second half of 2015, mill throughput at Canadian Malartic
is expected to reach its design capacity of 55,000 tpd (partly
contingent upon updating the existing operating permits), which
should result in higher production levels. Efforts are also
underway to optimize the life-of-mine plan and further improve
productivity and reduce costs.
Estimated Payable
Gold
Production |
2014 Actual |
|
|
|
2015
Forecast |
|
|
|
2016
Forecast
|
|
|
|
2017
Forecast
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde |
204,652 |
|
|
|
245,000 |
|
|
|
300,000 |
|
|
|
330,000 |
Canadian Malartic
(50%)
|
143,008
|
|
|
|
280,000
|
|
|
|
290,000
|
|
|
|
290,000
|
Lapa |
92,622 |
|
|
|
75,000 |
|
|
|
50,000 |
|
|
|
0 |
Goldex |
100,433 |
|
|
|
100,000 |
|
|
|
100,000 |
|
|
|
90,000 |
Kittila |
141,742 |
|
|
|
185,000 |
|
|
|
185,000 |
|
|
|
190,000 |
Meadowbank |
452,877 |
|
|
|
400,000 |
|
|
|
365,000 |
|
|
|
290,000 |
|
1,135,334 |
|
|
|
1,285,000 |
|
|
|
1,290,000 |
|
|
|
1,190,000 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos |
171,019 |
|
|
|
175,000 |
|
|
|
175,000 |
|
|
|
175,000 |
Creston Mascota |
47,842 |
|
|
|
50,000 |
|
|
|
45,000 |
|
|
|
40,000 |
La India |
75,093 |
|
|
|
90,000 |
|
|
|
90,000 |
|
|
|
95,000 |
|
293,954 |
|
|
|
315,000 |
|
|
|
310,000 |
|
|
|
310,000 |
Total Gold Production |
1,429,288 |
|
|
|
1,600,000 |
|
|
|
1,600,000 |
|
|
|
1,500,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash Costs Per Ounce |
|
2014 Actual |
|
2015 Forecast
|
Northern Business |
|
|
|
|
LaRonde |
|
$668 |
|
$576 |
Canadian Malartic
Lapa |
|
701
667 |
|
609
769 |
Goldex |
|
638 |
|
618 |
Kittila |
|
845 |
|
711 |
Meadowbank |
|
599 |
|
656 |
|
|
664 |
|
642 |
Southern Business |
|
|
|
|
Pinos Altos |
|
533 |
|
526 |
Creston Mascota |
|
578 |
|
559 |
La India |
|
487 |
|
491 |
|
|
529 |
|
521 |
Total |
|
$637 |
|
$618 |
At current foreign exchange rates, total cash costs per ounce on
a by-product basis for 2016 and 2017 are expected to be similar to
the 2015 forecast.
Consolidated all-in sustaining costs for 2015 are expected to be
approximately $880 to $900 per
ounce. In 2016 and 2017, the goal is to further reduce the
all-in sustaining cost below the level forecast for 2015.
Improved Three Year Gold Production Forecast
Since the prior three-year production guidance of February 12, 2014 ("Previous Guidance"), there
have been a number of key operating developments, resulting in
changes to the overall three-year production profile.
Descriptions of the major factors that contributed to these changes
are detailed below.
Northern Business
LaRonde Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
215,000 |
245,000 |
285,000 |
n.a. |
Current Guidance (oz) |
204,652 (actual) |
245,000 |
300,000 |
330,000 |
LaRonde
2015
Forecast |
Ore
Milled
('000
tonnes) |
Gold (g/t),
Mill
Recovery |
Silver (g/t),
Mill
Recovery |
Zinc (%),
Mill
Recovery |
Copper (%),
Mill
Recovery |
Minesite Cost
Per
Tonne4 |
|
2,245 |
3.65,
93.9% |
25.2,
76.9% |
0.51, 66.8% |
0.3, 79.7% |
C$102 |
At LaRonde, the new cooling and ventilation infrastructure that
was commissioned in early 2014 has helped to enhance the
productivity in the deeper portions of the mine. Three mining
horizons are now operational below level 215, which provides access
to higher grade reserves. A new coarse ore conveyor system
that is scheduled to be commissioned in late 2015 should further
enhance the flexibility in these areas. The increased
production forecasts through 2017 largely reflect an increase in
grade closer to that of the average reserves
Canadian Malartic
Forecast (50% basis) |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
135,000 |
n.a. |
n.a. |
n.a. |
Current Guidance (oz) |
143,008 (actual) |
280,000 |
290,000 |
290,000 |
Canadian Malartic
2015 Forecast |
Ore Milled
('000 tonnes) |
Gold (g/t) |
Mill
Recovery |
Minesite Cost
Per Tonne |
Strip ratio |
|
9,700 |
1.01 |
89% |
C$20* |
2.1:1.0 |
*does not include the 5% NSR
_____________________________ |
4Minesite 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". |
At Canadian Malartic (in which Agnico Eagle has 50% ownership),
the current crushing circuit has a nameplate capacity of 55,000
tpd. Throughput levels are forecast to be approximately 52,500 tpd
in the first half of 2015, increasing to approximately 55,000 tpd
in the second half of 2015. Production at Canadian Malartic
is forecast to be approximately 280,000 ounces of gold in 2015 to
Agnico Eagle's account. The potential second half increase in
throughput in 2015 is partly contingent upon updating the existing
operating permits. Forecasts for 2016 and 2017 assume a daily
throughput rate of approximately 55,000 tpd.
Lapa Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
80,000 |
75,000 |
45,000 |
n.a. |
Current Guidance (oz) |
92,622 (actual) |
75,000 |
50,000 |
n.a. |
Lapa 2015
Forecast |
Ore Milled
('000
tonnes) |
Gold (g/t) |
Mill Recovery |
Minesite Cost
Per Tonne |
|
584 |
5.17 |
77.5% |
C$118 |
At Lapa, 2015 and 2016 are the last two years of full production
based on the current life of mine plan. Production in these
two years is expected to progressively decline due to lower tonnage
and stope availability. The current plan considers that the
Lapa mine will only operate for a portion of 2016. Additional
exploration results from the Zulapa Z7 and Z8 zones could
potentially extend the mine life beyond 2016.
Goldex
Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
80,000 |
100,000 |
90,000 |
n.a |
Current Guidance (oz) |
100,433 (actual) |
100,000 |
100,000 |
90,000 |
Goldex 2015
Forecast |
Ore Milled
('000 tonnes) |
Gold (g/t) |
Mill Recovery |
Minesite Cost
Per Tonne |
|
2,190 |
1.55 |
92.5% |
C$34 |
The Goldex mine successfully started operations at the M and E
zones in the fourth quarter of 2013. Production in 2014 was
ahead of guidance due to a faster than expected ramp up in mining
rates. Existing reserves and exploitation of the M3 and M4
zones are expected to keep production levels and costs relatively
constant through 2017. Exploration and development has been
accelerated on the Deep Zone with the goal of outlining a mineable
reserve and completion of a technical study by late 2015 or early
2016. Development of the Deep Zone and the nearby Akasaba
West deposit have the potential to extend the mine's life and/or
production rate well beyond 2017.
Kittila
Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
150,000 |
160,000 |
170,000 |
n.a. |
Current Guidance (oz) |
141,742 (actual) |
185,000 |
185,000 |
190,000 |
Kittila 2015
Forecast |
Ore Milled
('000 tonnes) |
Gold (g/t), |
Mill Recovery |
Minesite Cost
Per Tonne |
|
1,487 |
4.5 |
86.0% |
€72 |
Expansion of the Kittila mill was essentially completed at the
end of the third quarter of 2014, approximately six months ahead of
schedule. The expansion provided upgrades to both the
grinding and flotation circuits and the oxidation and cyanidation
circuits. During the fourth quarter of 2014, activities focused on
ramping up throughput to the 4,000 tpd nameplate capacity (early
indications have shown that the plant can potentially exceed this
capacity). Production in 2014 fell short of expected guidance
due to the advancement of a 2015 planned mill shutdown (related to
the expansion) in September 2014, the
inability to access the remaining high-grade stopes in the
high-grade Suuri crown pillar, and fluctuations in mill
productivity during the mill ramp up in the fourth quarter.
In order to utilize this increased capacity, the Company is
looking at a combination of increased mine throughput and the
processing of surface stockpiles. As part of the program to
increase mine throughput, a priority focus will be on developing
the Rimpi zone through a ramp system to provide sufficient future
feed to the mill and enhance Kittila's production profile.
Meadowbank
Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
430,000 |
375,000 |
385,000 |
n.a. |
Current Guidance (oz) |
452,877 (actual) |
400,000 |
365,000 |
290,000 |
Meadowbank 2015
Forecast |
Ore Milled
('000 tonnes) |
Gold (g/t), |
Mill Recovery |
Minesite Cost
Per Tonne |
|
4,120 |
3.27 |
92.5% |
C$77 |
At Meadowbank, 2014 production exceeded guidance largely due to
the mining of higher than expected grades in the Goose pit in the
first half of the year. Production levels are expected to gradually
decline from 2015 to 2017 due to a decline in grade as the current
reserve base is depleted. In 2015, approximately 45% of the
production is expected to occur in the first half of the year.
Expected production increases in the second half of 2015 would be
due to higher grades being mined from the Portage E3 pit.
The Company is evaluating a potential expansion of the Vault
pit, which could result in approximately 150,000 to 200,000 ounces
being added to the mine plan starting in 2017. A positive
decision on the Vault expansion could affect the distribution of
ounces produced in 2016 to 2018. A decision on this expansion
is expected to be made by the second half of 2015. In
addition, a major drill program is planned at Amaruq in 2015 to
expand the initial 1.5 million ounce inferred resource base (see
the discussion on reserves and resources below) with the goal of
potentially developing the deposit as a satellite operation to
Meadowbank.
Southern Business
Pinos Altos
Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
145,000 |
165,000 |
170,000 |
n.a. |
Current Guidance (oz) |
171,019 (actual) |
175,000 |
175,000 |
175,000 |
Pinos Altos
2015 Forecast |
Total Ore
('000 tonnes) |
Gold (g/t)
Recovery |
Silver (g/t)
Recovery |
Minesite Cost
Per Tonne |
|
2,336 |
2.48, 94.0% |
64.9, 40.9% |
$54 |
At Pinos Altos, mill throughput
has steadily increased from the original design rate of 4,000 tpd
to the current average of approximately 5,500 tpd. A series
of improvements have contributed to increased production and cost
reduction in the mining and processing areas. As a result of these
improvements, the current production guidance for 2015 to 2017 is
slightly higher than previously estimated. Year-over-year
variances in guidance for 2015 and 2016 are attributable to mine
sequence and ore grade.
Creston Mascota
Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
40,000 |
40,000 |
40,000 |
n.a. |
Current Guidance (oz) |
47,842 (actual) |
50,000 |
45,000 |
40,000 |
Creston Mascota
2015 Forecast |
Total Ore
('000 tonnes) |
Gold (g/t)
Recovery |
Silver (g/t)
Recovery |
Minesite Cost
Per Tonne |
|
2,047 |
1.3, 57.25% |
16.0, 7.5% |
$14 |
The completion of the Phase III heap leach pad and agglomeration
projects, combined with the future expansion of the Phase IV heap
leach pad, have resulted in slightly higher expected annual
production for 2015 through 2017 at Creston Mascota. In 2015,
further drilling is planned on the Bravo deposit to evaluate it as a potential
source of additional production.
La India Forecast |
2014 |
2015 |
2016 |
2017 |
Previous Guidance (oz) |
50,000 |
90,000 |
90,000 |
n.a. |
Current Guidance (oz) |
75,093 (actual) |
90,000 |
90,000 |
95,000 |
La India 2015
Forecast |
Total Ore
('000 tonnes) |
Gold (g/t)
Recovery |
Silver (g/t)
Recovery |
Minesite Cost
Per Tonne |
|
5,355 |
0.86, 61.0% |
14.75, 10.5% |
$9 |
Commercial production was declared at La India in February 2014, and the mine has now achieved its
design expectation with annual production rates in 2015 to 2017
expected to be between 90,000 and 95,000 ounces. The current
guidance is unchanged from previous levels reported last
year.
Near-term Projects Could Potentially Enhance Production in
2017 and Beyond
The current three year plan sets out estimated average annual
gold production of approximately 1.6 million ounces through
2016. The estimated production level in 2017 is currently
forecast to be approximately 1.5 million ounces. However,
studies are underway at the following projects (none of which have
yet been approved for construction) to further enhance the
Company's production profile:
- Expansion of the Vault Deposit at Meadowbank
- Development of the Deep Zone at Goldex
- Production from Akasaba West at Goldex
- Rimpi Zone Development at Kittila
- Development of the Kuotko satellite deposit at Kittila
Last year at Meadowbank, approximately 246,000 ounces were
removed from reserves at the Vault deposit due to a change
in the gold price assumption used to calculate reserves at the end
of 2013. Given the current favourable US to Canadian dollar
foreign exchange rate and lower fuel costs, the Company is
evaluating the potential for a portion of these ounces to be added
back into the mine plan at Meadowbank starting in 2017. A
decision to proceed with the extraction of these additional ounces
will likely be made by the second half of 2015.
At the Goldex mine, exploration and development activities have
been accelerated on the Deep Zone (top of the D Zone) with
the goal of outlining a mineable reserve and completion of a
technical study by late 2015 or early 2016. Development of
the Deep Zone and the Akasaba West deposit (see below) could
enhance production levels or extend the current mine life and
reduce operating costs.
In January 2014, Agnico Eagle
acquired the Akasaba West gold-copper deposit from
Alexandria Minerals (AZX:TSXV) for C$5.0
million and a 2% NSR royalty on any gold production
exceeding 210,000 ounces. Located less than 30 km from
Goldex, the Akasaba West deposit could potentially create
flexibility and synergies for the Company's operations in the
Abitibi region by utilizing extra milling capacity at both Goldex
and LaRonde, while reducing overall costs. Akasaba currently hosts
an indicated resource of approximately 200,000 ounces (8.1 million
tonnes at 0.77 g/t gold and 0.44% copper). Permitting and technical
studies are underway with the goal of moving the project towards a
production decision.
Drilling on the Rimpi Zone at Kittila has outlined a
significant zone of mineralization with potentially wider widths
and better grades than those currently being mined. The
underground ramp at Kittila is being extended to reach the Rimpi
Zone, and it will also provide further underground drill access to
test for additional depth extensions of the Rimpi, Suuri and Roura
mineralized zones. In addition, a surface ramp has been
collared to test the Rimpi Zone at shallower depths. With the
potential for higher mill capacity, development of the Rimpi zone
could result in increased future production levels at Kittila.
At the Kuotko deposit, located approximately 15
kilometers north of Kittila, a drilling program is expected to
begin in March 2015 to infill and
expand the existing 170,000 ounce inferred resource (1.8 million
tonnes at 2.9 g/t gold). Upon completion of the drilling,
studies will be carried out to assess the viability of mining the
deposit via an open pit.
Development/Expansion Projects in Nunavut and Mexico Expected to Provide
Longer-term Growth Opportunities beyond 2017
The expansion and development projects set out below, which have
not yet been approved for construction, have the potential to add
to the Company's production profile in 2018 and beyond.
Amaruq - Maiden Resource Suggests Good Potential to Extend
Meadowbank Mine Life
The Amaruq project, which is located approximately 50 kilometres
northwest of the Meadowbank mine in Nunavut, has declared its first resource
within approximately 18 months from the commencement of exploration
drilling. In 2014, a $10
million exploration program was completed that consisted
primarily of 31,598 metres of drilling (144 holes) and collection
of environmental baseline data.
Permitting and preliminary engineering activities have continued
for the possible construction of an all-weather exploration road
linking the Amaruq exploration site to the Meadowbank mine. This
road would facilitate exploration activities such as fuel,
equipment and personnel transportation.
The 100% owned Amaruq property consists of 114,760 hectares of
Inuit and federal crown land. Agnico Eagle acquired its initial
interest in April 2013 pursuant to a
mineral exploration agreement with Nunavut Tunngavik
Incorporated.
A large portion of last year's drill program was focused on the
Whale Tail Zone, where 60 holes (17,261 metres) outlined up to 5
mineralized lenses along a strike length of 1.2 kilometre and to a
depth of up to 350 metres below surface. Mineralization at
Whale Tail remains open in all directions.
At year-end 2014, inferred resources at Amaruq were estimated to
be 6.6 million tonnes at 7.1 g/t gold for a total of 1.5 million
ounces of gold. Of the total inferred resource, approximately
1.4 million ounces are contained in the Whale Tail deposit, with
the balance hosted in the I, V, and R zones.
A 50,000 metre drill program (costing approximately $20 million) is expected to begin in March 2015, with the intent of infilling and
expanding the known mineralized zones and testing other favourable
targets (for additional details see the exploration section below).
A resource update is expected in the second half of 2015, and the
Company hopes to ultimately develop Amaruq as a satellite operation
to Meadowbank.
Meliadine - Reserves Increased, and Technical Study Nearing
Completion
Located near Rankin Inlet, Nunavut,
Canada, the Meliadine project was acquired in July 2010, and is one of Agnico Eagle's largest
gold projects in terms of resources. The Company owns 100% of the
111,757 hectare property.
Activities in 2014 included infill and step-out diamond
drilling, ramp development, permitting, camp operation and work on
an updated technical study. In 2014, approximately 1,363 metres of
underground development were completed, with the ramp now extending
to a vertical depth of approximately 215 metres below the
surface.
On January 27, 2015, the Minister
of Aboriginal Affairs and Northern Development for Canada approved the environmental assessment
findings and recommendations made by the Nunavut Impact Review
Board (NIRB) on their Part 5 Review of the Meliadine project under
the Nunavut Land Claim Agreement. The Minister directed the NIRB to
issue Agnico Eagle with a Project Certificate for the Meliadine
Gold Project setting out the terms and conditions under which the
Meliadine project can proceed. These conditions were set out in the
NIRB report that was submitted to the Minister on October 10, 2014. The NIRB will now convene all
of the regulatory agencies for a final workshop which is expected
to lead to the issuance of the Project Certificate within the next
two months.
The issuance of the Project Certificate would enable Agnico
Eagle to apply for the various operating
permits/licenses/authorizations required to actually start
construction and operation of a gold mine at Meliadine. One of the
key permits is the Type A Water License which authorizes all water
use and waste disposal requirements for the Meliadine mine during
the construction, operation and ultimate reclamation phases of the
project. The Company is currently working on this application with
the intent to file with the Nunavut Water Board in the next few
months.
The expected capital budget for 2015 is approximately
$64 million. Of this total,
approximately $21 million is
allocated towards underground development (2,500 metres). This
development will allow for cost-effective exploration and
conversion drilling of the deeper parts of the Tiriganiaq and
Wesmeg/Normeg zones, which should provide a better understanding of
the mineralization and help to optimize potential mining plans. A
portion of the 2015 budget is also allocated to camp operation,
construction activities, and permitting and technical services.
An updated technical study is progressing with completion
expected later in the first quarter of 2015. The timing of
estimating or making capital expenditures on the project beyond
2015 will be subject to Board approval and prevailing market
conditions.
Pinos
Altos/Mascota - Drilling
and Further Studies Planned on Satellite Zones
At Pinos Altos and Mascota, approximately 14,000 metres of infill
and conversion drilling are planned in 2015 for the Sinter,
Bravo and Cubiro satellite
deposits. This drilling along with additional metallurgical
testing and geotechnical studies will be used to further evaluate
the potential to develop these zones as satellite deposits to the
existing operations.
El Barqueno- Targeting an Initial Resource by the end of
2015
The El Barqueno property in Jalisco State, Mexico covers a land position which is larger
than the strike radius of the mineralization at both the La India
and Pinos Altos properties
combined. Previous operators outlined several mineralized zones
through surface exploration and diamond drilling.
The Company believes this property has the potential to host
Pinos Altos style gold-silver
mineralization (with potential copper credits) that could be
developed as a combination open pit/underground mine with mill and
heap leach processing. As such, Agnico Eagle plans to carry
out a $15 million exploration program
this year to evaluate several of the known mineralized zones with a
focus on developing an initial resource by year-end 2015. For
additional details see the exploration section below.
Continued Capital Discipline Expected in 2015
At current spot input prices, Agnico Eagle expects to fund this
year's capital expenditures, which are estimated to total
approximately $481 million, from
operating cash flow.
The estimated capital expenditures for 2015 include
approximately $304 million of
sustaining capital at the mines and $164
million on new projects and expansions, as set out in the
table below. Additionally, approximately $13 million is estimated to be spent on
capitalized exploration and approximately $94 million on expensed exploration (which is a
68% increase over 2014 levels), project evaluation and corporate
development.
Estimated 2015 Capital
Expenditures |
|
|
Sustaining |
Development
Projects |
Capitalized
Exploration |
Expensed
Exploration |
(millions of $) |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
LaRonde |
|
|
67 |
|
1 |
2 |
Lapa |
|
|
5 |
|
1 |
1 |
Goldex |
|
|
14 |
26 |
2 |
|
Kittila |
|
|
50 |
11 |
2 |
7 |
Meadowbank |
|
|
43 |
|
|
|
Meliadine
|
|
|
|
64
|
1 |
|
Canadian Malartic |
|
|
40 |
19 |
|
6 |
|
|
|
219 |
120 |
7 |
16 |
Southern Business |
|
|
|
|
|
|
Pinos Altos |
|
|
50 |
44 |
2 |
2 |
La India |
|
|
25 |
|
3 |
2 |
Creston Mascota |
|
|
10 |
|
|
|
|
|
|
85 |
44 |
5 |
4 |
Project Eval/Corp Dev |
|
|
|
|
|
24 |
Other Exploration |
|
|
|
|
1 |
50 |
Total Expenditures |
|
|
304 |
164 |
13 |
94 |
2015 Exploration Program and Budget - Main Focus on Amaruq
and El Barqueno
A large component of the 2015 exploration program will be
focused on the Amaruq project near the Meadowbank mine in
Nunavut and the El Barqueno
project in Jalisco State, Mexico.
These exploration programs are designed to infill and expand known
deposits and test other favourable target areas. The ultimate
goal is to delineate reserves and resources that can supplement the
Company's existing production profile.
The Amaruq exploration camp is expected to reopen in late
February 2015, with winter drilling
to start in March 2015 and completion
of the camp expansion to accommodate 80 personnel by late
March 2015.
Drilling and field work in 2015, including ground geophysics, is
planned to again focus on the Whale Tail zone (especially under the
lake), with additional investigation of the I, V and R deposits and
other known zones and targets (such as the boulder field with
visible gold near Mammoth Lake). The initial 2015 exploration
program contemplates approximately 50,000 metres of drilling with a
budget for approximately $20 million.
The 2015 program also includes engineering and permitting
activities.
At El Barqueno, the 2015 exploration budget is approximately
$15 million and includes
approximately 25,000 metres of drilling. Currently, one drill
rig is testing targets at the Angostura and Azteca zones, and two portable
drills are operating at the Peña de Oro zone.
Depreciation Guidance
Agnico Eagle expects its 2015 depreciation and amortization
expense to be in the range of $550 to $575
million.
General & Administrative Cost Guidance
Agnico Eagle expects 2015 general and administration expense to
be between $68 to $78 million,
excluding share based compensation. In 2015, share based
compensation is expected to be between $20
to $25 million including stock option expense (which is a
non-cash item) of between $18 to $22
million, which is in line with previous years.
Please see the supplemental financial data section of the
Financial and Operating Database on the Company's website for
additional historical financial data.
Tax Guidance for 2015
For 2015, the jurisdictional tax rates are expected to be:
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
The Company's overall tax rate is expected to be between 40% and
45%.
Gold Reserves increase 18% to Approximately 20.0M ounces,
Reserve Grade Increased at Key Operations
To calculate the 2014 year-end reserves, the Company continued
to use conservative assumptions ($1,150/ounce gold and $18/ounce silver, and a C$/US$ exchange rate of
1.08).
At year-end 2014, the Company's proven and probable gold
reserves (net of 2014 production) totaled 259 million tonnes
grading 2.40 g/t gold, containing approximately 20.0 million ounces
of gold. This is an increase of approximately 3.1 million ounces of
gold in addition to the 1,429,288 ounces of payable gold production
in 2014 (1,656,174 ounces of in-situ gold mined).
The increase in the Company's reserves is largely due to its
acquisition of a 50% interest in the Canadian Malartic mine in
mid-June 2014. As of the end of 2014,
Canadian Malartic (50% basis) has the Company's second largest
mineral reserves containing approximately 4.3 million ounces of
gold.
While the Company's reserves have increased 18% based on
contained gold, the grade has decreased to 2.40 g/t gold. This is
the result of the Canadian Malartic reserves being significantly
lower grade than most of the other operations at 1.06 g/t gold. The
average grade for the rest of the Company's operations has
increased to 3.69 g/t gold as of year-end 2014, compared with 3.51
g/t gold a year earlier. Agnico Eagle has one of the highest
reserve grades among its North American peers.
Highlights from the December 31,
2014 Reserve Statement:
- Gold reserves increased to approximately 20.0 million ounces
from approximately 16.9 million a year ago
- Increased gold reserve grades at LaRonde (5.20 g/t versus 5.0
g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos (3.01 g/t versus 2.84 g/t)
- Not including Canadian Malartic, the average gold reserve grade
at the Company's operations increased to 3.69 g/t as of year-end
2014, compared with 3.51 g/t a year earlier.
- At Meliadine, there was an addition of 494,000 ounces of
reserves and an increase in the reserve grade to 7.44 g/t gold from
7.38 g/t gold.
The Company's year-end 2014 gold reserves are set out below:
Gold Reserves |
Proven & Probable |
Average Gold Reserve |
By Mine |
Reserve (000s gold ounces) |
Grade
(g/t) |
|
2014 |
2013 |
Change |
2014 |
2013 |
Change |
Northern Business |
|
|
|
|
|
|
LaRonde |
3,432 |
3,880 |
-448 |
5.20 |
5.00 |
0.20 |
Canadian Malartic (50%) |
4,329 |
- |
4,329 |
1.06 |
- |
- |
Lapa |
170 |
281 |
-111 |
5.84 |
5.97 |
-0.13 |
Goldex |
340 |
372 |
-32 |
1.49 |
1.52 |
-0.03 |
Kittila |
4,524 |
4,714 |
-190 |
4.93 |
4.64 |
0.29 |
Meadowbank |
1,168 |
1,751 |
-583 |
3.08 |
3.24 |
-0.16 |
Meliadine |
3,335 |
2,841 |
494 |
7.44 |
7.38 |
0.06 |
Subtotal/Average |
17,299 |
13,839 |
3,459 |
2.57 |
4.60 |
-2.03 |
Southern Business |
|
|
|
|
|
|
Pinos Altos |
1,763 |
1,974 |
-211 |
3.01 |
2.84 |
0.17 |
Creston Mascota |
236 |
292 |
-56 |
1.25 |
1.28 |
-0.03 |
La India |
679 |
758 |
-79 |
0.85 |
0.87 |
-0.02 |
Subtotal/Average |
2,678 |
3,024 |
-346 |
1.70
|
1.69 |
0.01 |
Total Reserves |
19,976 |
16,865 |
3,112 |
2.40 |
3.51 |
-1.11 |
Amounts presented in the table and in this news release have
been rounded to the nearest thousand. See "Detailed Mineral Reserve
and Resource Data (as at December 31,
2014)" set out at the end of this news release for more
details.
In prior years, economic parameters used to model reserves for
all properties were calculated 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 reserve
determination, which the SEC has interpreted to mean historic
three-year average prices. Given the current lower commodity
price environment, Agnico Eagle has decided to continue to use more
conservative gold and silver prices of $1,150 per ounce and $18 per ounce, respectively, for the December 2014 reserve estimates. These
prices are well below the three-year historic gold and silver price
averages (from January 1, 2012 to
December 31, 2014) of approximately
$1,448 per ounce and $25 per ounce, respectively.
For the December 2014 reserve
calculations, the same economic parameters were used at all of the
Company's mines and advanced projects, except for the Canadian
Malartic mine. The Canadian Malartic
Partnership, owned by Agnico Eagle (50%) and Yamana Gold
Inc. (50%), which owns and operates the Canadian Malartic mine, has
estimated the mine's current reserves using the following
parameters: US$1,300/ounce gold and a
C$/US$ exchange rate of 1.10. On August 13, 2014, the Partnership filed a NI
43-101 report on the Canadian Malartic mine, which provided an
update on reserves and resources (for details please see the news
release dated August 13, 2014).
Details of the economic parameters used in generating the
December 2014 reserves are shown with
the detailed reserve and resource tables near the end of this news
release.
While the gold price (in US dollars) and currency exchange rates
have changed since a year ago, the gold price has remained
relatively stable over the past 12 months, when reported in the
Canadian dollar, Euro or Mexican peso. The following table shows
the changes in gold price (in various currencies) and exchange
rates over the past two years.
Comparison of assumptions used in 2013 and 2014 to estimate
reserves
|
Dec. 31, 2014 |
Dec. 31, 2013 |
Currency exchange rate |
|
|
|
|
|
|
C$/US$ |
1.08 |
1.03 |
|
US$/Euro |
1.30 |
1.32 |
|
MXP/US$ |
13.00 |
12.75 |
Gold price per ounce in local currencies
US$ |
|
|
|
US$1,150 |
|
|
|
US$1,200 |
C$ |
|
|
|
C$1,242 |
|
|
|
C$1,236 |
Euros |
|
|
|
€885 |
|
|
|
€909 |
Mexican pesos |
|
|
|
MPX14,950 |
|
|
|
MPX15,300 |
The other increase in reserves came at the Meliadine advanced
exploration project, where revisions to the estimation parameters
based on an updated technical study, that is currently being
prepared, have led to an increase of almost 500,000 ounces of gold
in reserves. The Meliadine project now has more gold in reserves
than all but the three largest of Agnico Eagle's operating
mines.
The decline in reserves at the other mines was largely due to
mine production during 2014 and an increase in cut-off grade,
partially offset by the conversion of resources to reserves from
drilling programs.
The Meadowbank mine had the largest decline in reserves due to
479,245 ounces of in-situ gold mined in 2014 (for a record high
453,000 ounces of gold production).
It is the Company's goal to maintain its gold reserves at
approximately 10 to 15 times its annual gold production rate.
The current reserves are well within this range when compared to
the Company's projected annual 2015 production rate.
In addition to gold, Agnico Eagle's proven and probable reserves
include by-product metals of approximately 67 million ounces of
silver at the Pinos Altos,
LaRonde, La India and Creston Mascota mines (69.5 million tonnes
grading an average of 29.93 g/t silver), plus 131,231 tonnes of
zinc and 51,250 tonnes of copper at the LaRonde mine (20.5 million
tonnes grading 0.64% zinc and 0.25% copper).
At a gold price of $1,300 per
ounce (leaving all other assumptions unchanged), there would be an
approximate 6.3% increase in the gold contained in proven and
probable reserves. Conversely, using a gold price of $1,000 (leaving all other assumptions unchanged),
there would be an estimated 6.2% decrease in the gold contained in
proven and probable reserves.
Measured and Indicated Gold Resources Grow by Approximately
56%, While Inferred Resources Increase by Approximately 33%
Highlights from the December 31,
2014 Resource statement:
- Measured and indicated resources now total approximately 317
million tonnes grading 1.47 g/t, or approximately 15.0 million
ounces of gold. This represents an increase of about 56% or 5.4
million ounces
- At LaRonde, conversion drilling led to the establishment of the
first indicated resource below the 311 level of approximately
444,000 ounces gold
- Conversion drilling at the Meliadine project led to an
approximately 211,000 ounce increase in indicated gold
resources
- At Goldex, there was an increase of 191,000 ounces of gold
contained in indicated resources from the Deep zone
- Inferred resources total approximately 209 million tonnes
grading 2.01 g/t, or 13.5 million ounces of gold. This represents
an increase of 33% or approximately 3.4 million ounces of gold in
inferred resources
- An initial inferred resource of approximately 1.5 million
ounces was declared at the Amaruq discovery
- The Meliadine inferred resource increased 28% (750,000 ounces
gold) to 14.1 million tonnes grading 7.65 g/t gold (containing
approximately 3.5 million ounces gold)
The Company's measured and indicated resources now total
approximately 317 million tonnes grading 1.47 g/t, or 15.0 million
ounces of gold. This represents an increase of about 56% or 5.4
million ounces and a 23% decrease in grade over the December 2013 measured and indicated resource
(see the February 12, 2014 news
release for comparison). The increase in contained gold is due to
the acquisition of a 50% interest in the Canadian Malartic mine in
mid-June 2014 and the successful
conversion drilling from inferred resources at many of the
operations.
The largest factor contributing to the increase in the measured
and indicated resources this year was the addition of a 50%
interest in the Canadian Malartic mine and other properties with
the June 2014 acquisition of Osisko
Mining, as shown in the table below. While the Canadian Malartic
mine has approximately 1.0 million ounces of gold in measured and
indicated resources (Agnico Eagle's 50% portion), as of
December 31, 2014, the exploration
properties brought even larger resources to the Company.
Agnico Eagle's 50% interest in the Hammond Reef project in northwest Ontario contains a measured and indicated
resource of 104.2 million tonnes grading 0.67 g/t gold
(approximately 2.3 million ounces of gold). A new mineral resource
estimate for the Upper Beaver deposit in the Kirkland Lake project in northeast
Ontario resulted in an indicated
resource of 3.2 million tonnes grading 7.00 g/t gold and 0.26%
copper (approximately 0.7 million ounces of gold - Agnico Eagle's
50% interest).
Year-end 2014 reserves and resources of the properties gained by
the June 2014 acquisition of Osisko
Mining (Agnico Eagle's 50% portion)
Category/Property |
Gold grade
(g/t gold) |
Gold
(000 oz) |
Tonnes
(000) |
Reserves |
|
|
|
Proven Reserves
Canadian Malartic mine (open pit) |
0.92 |
736 |
24,969 |
Probable Reserves
Canadian Malartic mine (open pit) |
1.10 |
3,593 |
101,978 |
Total Proven & Probable reserves |
1.06 |
4,329 |
126,947 |
Measured Resources |
|
|
|
Canadian Malartic mine (open pit) |
0.84 |
77 |
2,843 |
Hammond Reef project (open pit) |
0.70 |
1,862 |
82,831 |
Subtotal Measured Resources |
0.70 |
1,939 |
85,674 |
Indicated Resources |
|
|
|
Canadian Malartic mine (open pit) |
0.85 |
891 |
32,708 |
Upper Beaver project (underground) |
7.00 |
722 |
3,210 |
Hammond Reef project (open pit) |
0.57 |
388 |
21,377 |
Subtotal Indicated Resources |
1.09 |
2,002 |
57,296 |
Subtotal Canadian Malartic M&I
Resources |
0.85 |
968 |
35,552 |
Subtotal Hammond Reef M&I
Resources |
0.67 |
2,250 |
104,208 |
Total Measured and Indicated Resources |
0.86 |
3,940 |
142,970 |
Inferred Resources |
|
|
|
Canadian Malartic mine (open pit) |
0.76 |
556 |
22,655 |
Upper Beaver project (open pit) |
1.99 |
125 |
1,957 |
Upper Beaver project (underground) |
4.66 |
398 |
2,654 |
Subtotal Upper Beaver project |
3.53 |
523 |
4,610 |
Hammond Reef project (open pit) |
0.74 |
6 |
250 |
Total Inferred Resources |
1.23 |
1,085 |
27,516 |
The Canadian Malartic mine reserves were estimated in the
method described in the June 16, 2014
Canadian Malartic technical report using the assumptions of
$1,300/oz gold and a C$/US$ exchange
rate of 1.10. The Hammond Reef project resources were estimated
using the assumptions of $1,400 per
ounce gold and a 0.32 g/t gold cut-off grade for the West Pit and a
0.34 g/t gold cut-off grade for the East Pit. The Upper
Beaver deposit is in the Kirkland
Lake project; its resources were estimated using the
assumptions of $1,200 per ounce gold,
$3.00/pound copper and a C$/US$
exchange rate of 1.08. Underground resources at Upper Beaver
use a cut-off grade of 2.5 g/t gold-equivalent, and metallurgical
recoveries for gold and copper of 95% and 90%, respectively.
Other than the properties acquired through the acquisition of
Osisko Mining, there was an increase of about 1.4 million ounces of
gold in measured and indicated resources in 2014. The largest
increase in indicated resources came at the LaRonde mine, where
conversion drilling below the 311 level (3,110 metres below
surface) led to establishing indicated resources containing
approximately 444,000 ounces gold, the first indicated resources at
this depth. Conversion drilling at the Meliadine project led to an
approximately 236,000 ounce increase in indicated gold
resources. There was also an increase of approximately
210,000 ounces of gold in the indicated resources at the Kittila
mine, as a result of underground conversion drilling from the
exploration ramp that is extending to the north.
At Goldex, there was an increase of approximately 191,000 ounces
of gold contained in indicated resources from the Deep zone. The
objective is to outline initial reserves from the Deep zone in late
2015 or early 2016. The other large increase came at the
Akasaba project, purchased in January
2014 and located about 30 kilometres from Goldex, where
approximately 200,000 ounces of gold contained in 8.1 million
tonnes grading 0.77 g/t gold and 0.44% copper has been estimated as
of December 31, 2014.
The Company's inferred resources now total 209 million tonnes
grading 2.01 g/t, or approximately 13.5 million ounces of gold.
This represents an increase of 33% or approximately 3.4 million
ounces of gold in inferred resources (see the February 12, 2014 news release for
comparison).
The largest part of this increase is the significant initial
inferred resource of 6.6 million tonnes grading 7.07 g/t gold
(approximately 1.5 million ounces gold) at the high-grade Amaruq
discovery, which is 50 kilometres from the Meadowbank mine in
Nunavut. Two-thirds of the
Amaruq-resources are near-surface, and more than 90% are in the
Whale Tail zone.
The properties that were obtained through the June 2014 acquisition of Osisko Mining account
for approximately 1.1 million ounces of inferred gold resources (on
a 50% basis). Of this increase, approximately 556,000 ounces
are at the Canadian Malartic mine and approximately 523,000 ounces
are at Upper Beaver.
The Meliadine inferred resources increased 28% (approximately
750,000 ounces gold) to 14.1 million tonnes grading 7.65 g/t gold
(containing approximately 3.5 million ounces gold).
Exploration drilling at Meliadine on the Pump and Wesmeg zones and
a review of the 3D model were responsible for the increase.
Exploration drilling at depth was responsible for a 24% increase
(approximately 234,000 ounces) in inferred gold resources at
Kittila, and for a 12% (approximately 167,000 ounces) increase in
inferred gold resources at Goldex. Successful conversion
drilling at depth at the LaRonde mine removed approximately 400,000
ounces gold from the inferred resource category to measured and
indicated resources.
The distribution of resources by property is set out in the
following table. For full details including tonnages and grade, see
the Detailed Mineral Reserve and Resource Data table in this news
release.
December 31, 2014 Mineral
Resources
|
Measured & Indicated |
|
Inferred |
|
Resources |
|
Resources |
|
(000 oz gold) |
|
(000 oz gold) |
Northern Business |
|
|
|
LaRonde |
711 |
|
1,197 |
Canadian Malartic (50%) |
968 |
|
556 |
Lapa |
147 |
|
225 |
Goldex |
2,095 |
|
1,540 |
Kittila |
1,350 |
|
1,230 |
Meadowbank |
798 |
|
422 |
Meliadine |
3,293 |
|
3,464 |
Amaruq |
- |
|
1,501 |
Bousquet/Ellison |
1,008 |
|
778 |
Hammond Reef (50%) |
2,250 |
|
6 |
Upper Beaver (Kirkland Lake) (50%) |
722 |
|
523 |
Akasaba |
201 |
|
2 |
Other |
31 |
|
420 |
Subtotal |
13,575 |
|
11,867 |
|
|
|
|
Southern Business |
|
|
|
Creston Mascota |
48 |
|
153 |
Pinos Altos |
706 |
|
496 |
La India |
684 |
|
971 |
Subtotal |
1,438 |
|
1,620 |
Total Resources |
15,013 |
|
13,487 |
Northern Business Operating Review
LaRonde Mine - Production Increasing, Cash costs
Declining
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988.
The LaRonde mill processed an average of 5,847 tpd in the fourth
quarter of 2014, compared with an average of 6,726 tpd in the
corresponding period of 2013. Minesite costs per tonne were
approximately C$97 in the fourth
quarter of 2014, higher than the C$89
per tonne experienced in the fourth quarter of 2013. The
lower tonnage and increase in costs compared to the prior-year
period is primarily due to 10 days of unscheduled downtime related
to a production hoist drive failure at shaft #4 in December.
Production hoisting has since returned to normal and the integrity
of the drive has been restored.
Milling performance for the full year 2014 was approximately
5,713 tpd versus 6,354 tpd in 2013. The lower throughput in
2014 compared to 2013 relates primarily to the planned shutdown for
the installation of new hoist drives to replace obsolete production
and service hoist equipment in the Penna shaft. Minesite costs per
tonne for the full year 2014 were approximately C$99, unchanged from C$99 per tonne in 2013.
LaRonde's total cash costs per ounce on a by-product basis were
$590 in the fourth quarter of 2014 on
payable production of 59,316 ounces of gold. This compares
with the fourth quarter of 2013 when total cash costs per ounce on
a by-product basis were $653 on
production of 51,336 ounces of gold. The decrease in total
cash costs in the 2014 period was largely due to higher production
(due to higher gold grades and the improved recoveries from the CIP
circuit) and ongoing cost savings (especially labour, electricity
and chemicals).
For the full year 2014, LaRonde's total cash costs per ounce on
a by-product basis were $668 on gold
production of 204,652 ounces. This compares to total cash
costs per ounce on a by-product basis of $767 on gold production of 181,781 ounces in
2013. The higher production and lower costs in the 2014
period are primarily due to the reasons outlined above.
In 2014, the LaRonde mine also produced approximately 10,515
tonnes of zinc (47% less than in 2013), 1.3 million ounces of
silver (39% less than in 2013), and 4,997 tonnes of copper (3% more
than in 2013) as by-products to the gold production. These totals
are consistent with the change in the metals mix as the mine goes
deeper and becomes more gold rich as opposed to zinc/silver rich in
the upper levels. In 2015, approximately 81% of production is
expected to come from the lower mine area (below the 215
level).
In 2014, work continued on the installation of the coarse ore
conveyor system that will extend from the 293 level to the crusher
on the 280 level. This new conveyor, which is expected to be
commissioned in the second half of 2015, should help mining
flexibility and reduce congestion in the deeper portions of the
mine.
Studies are underway to assess the potential to extend the
reserve base and carry out mining activities between the 311 and
371 levels at LaRonde. At present, the reserve base extends
to the 311 level, which is 3.1 kilometers below the surface.
In 2014, conversion drilling below the 311 level added
approximately 444,000 ounces of gold to the indicated
resources.
Canadian Malartic General Partnership - New Quarterly Record
for Mill Throughput
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired all of the issued and
outstanding common shares of Osisko Mining Corporation and created
the 50:50 Partnership ("the Partnership") that now owns and
operates the Canadian Malartic mine in northwestern Quebec through a joint management
committee.
During the fourth quarter of 2014, the Canadian Malartic mill
(on a 100% basis) processed an average of 53,232 tpd, which was a
new quarterly record. Minesite costs per tonne were lower than
budget at approximately C$19
(excluding royalties) as throughput improved and optimization
efforts continued. The fourth quarter included a five day scheduled
shutdown for mill maintenance.
Throughput in the second half of 2014 averaged approximately
53,000 tpd, compared to approximately 49,500 tpd in the first half
of 2014. This improvement in throughput is largely due to
productivity improvements made by the Partnership since the
acquisition in June 2014.
For the full year 2014, the Canadian Malartic (on a 100% basis)
mill processed an average of 51,248 tpd, with minesite costs per
tonne of approximately C$19.76
(excluding royalties). Minesite costs per tonne have been better
than the guidance of C$21 per tonne
(excluding royalties) that was issued on July 30, 2014, largely due to better
productivity. The average stripping ratio in 2014 was 2.54 to
1.0.
For the fourth quarter of 2014, Agnico Eagle's share of
production at the Canadian Malartic mine was 66,369 ounces of gold
at a total cash cost per ounce of $684 on a by-product basis.
Given the strong operational performance in the second half of
2014, total gold production in 2014 (on a 100% basis) was 535,470
ounces, which exceeded the 2014 guidance forecast range of 510,000
ounces to 530,000 ounces.
Since acquiring its interest in the Canadian Malartic mine on
June 16, 2014, Agnico Eagle's share
of production was 143,008 ounces of gold at total cash costs per
ounce of $701 on a by-product
basis.
On August 13, 2014, the Company
filed a technical report on the Canadian Malartic mine which
provided an update on reserves and resources (for details please
see the news release dated August 13,
2014).
In Agnico Eagle's third quarter news release, total capital
costs for 2014 at the Canadian Malartic mine (on a 100% basis) were
estimated at approximately C$154.6
million. Actual capital costs for the full year 2014 were
approximately C$139 million. The
change is largely due to optimization of the Gouldie pit and minor
capital spending deferrals into 2015.
Mr. Serge Blais was appointed
General Manager of the Canadian Malartic Mine, effective
February 9, 2015, replacing Mr.
Eric Tremblay who is leaving
effective February 27, 2015.
Prior to joining Canadian Malartic, Mr. Blais spent nine years
at Agnico Eagle, where he was most recently the Assistant General
Manager at the LaRonde mine. Mr. Blais has extensive
experience in the mining industry. He spent 12 years with Cambior
where he served as Mine Superintendent at the Sleeping Giant mine
and Senior Supervisor at the Rosebel open pit mine in Suriname.
Mr. Blais is a Mining Engineer with a degree from
Laval University.
Canadian Malartic Mine - Optimization Efforts
Continuing
Since acquiring the mine in June
2014, the Partnership has been looking at a variety of ways
to optimize the operations. The current crushing circuit has a
nameplate capacity of 55,000 tpd. Throughput levels are
forecast to be approximately 52,500 tpd in the first half of 2015,
increasing to approximately 55,000 tpd in the second half of
2015. Production at Canadian Malartic is forecast to be
approximately 280,000 ounces (Agnico Eagle's 50% share) in 2015.
The potential second half increase in throughput in 2015 is partly
contingent upon updating the existing operating permits.
The study evaluating increasing throughput rates to 60,000 tpd
has been put on hold until the 55,000 tpd pre-crushing throughput
level has been consistently achieved.
Ounce reconciliation with the block model continues to be
positive (3% to 4% higher) and is an opportunity provide additional
production flexibility going forward.
Proposed throughput optimization activities in 2015 include:
- Use of a 994 loader to feed the gyratory crusher between
trucks
- Reduced truck waiting time at the crusher
- North wall project - focus on accelerated stripping to access
more tonnes at higher grades from the north side of the pit
- Improved blasting fragmentation to reduce the size of ore sent
to the primary crusher
- Increase the crusher circuit uptime
- Add a new auxiliary feeder
- Reduce the loss of loading equipment teeth
Proposed productivity improvements include:
- Creation of a productivity/continuous improvement team with a
focus on reducing operating costs
- Evaluating the potential to convert to LNG fueled trucks, which
are cheaper to operate and have lower greenhouse gas emissions
- Renegotiation of major contracts on fuel and consumables
(evaluating potential synergies with other Agnico Eagle Abitibi
operations)
- Program to review manpower requirements (including
contractors)
- Optimization of the maintenance program for mobile equipment -
audit done - action plan in place
- Optimization of liner wear in all major crushing components -
trials ongoing
- Looking at possible modification of the SAG mill liner design
to increase the grinding efficiency and expected liner life -
testing ongoing with potential benefits being realized after Q2
2015
- Potential to use larger grinding media in the SAG mill -
testing continuing
- Initiation of projects to reduce consumables consumption (being
carried out in conjunction with the continuous improvement
project)
- Optimization of waste rock management plans with an aim of
trying to reduce cycle times - this should ultimately result in
shorter hauling distances
- Optimization of the life-of-mine plan - work is ongoing,
completion expected in Q2
Exploration Activities - C$14
million Budget Approved for 2015
In addition to joint, indirect ownership of the Canadian
Malartic mine, Agnico Eagle and Yamana are also jointly exploring a
portfolio of properties in the Kirkland
Lake area and the Pandora and Wood-Pandora properties in the
Abitibi region of Quebec.
Agnico Eagle and Yamana, indirectly through Canadian Malartic Corporation each hold a 50% interest in
Kirkland Lake and Pandora
properties, while the Wood-Pandora property is a joint venture
between Globex Mining Enterprises Inc. (50%) and Canadian
Malartic Corporation.
From June 16 to December 31, 2014,
Canadian Malartic Corporation spent
C$8.15 million (on a 100% basis) on
these properties with a focus on the Upper Beaver project in
Kirkland Lake, and the Pandora
property, which adjoins Agnico Eagle's Lapa mine. Activities
included the compilation of historical work at the various
Kirkland Lake properties and an
update of the resource base at the Upper Beaver project.
Exploration expenditures in the fourth quarter of 2014 were
approximately C$4.0 million (on a
100% basis).
Work at Upper Beaver focused on testing for near surface
mineralization, and several holes were drilled to test for
mineralization below the current intercepts that encountered
high-grade intervals at depths below 1,500 metres. Near surface
drilling outlined a small, potentially open-pit resource.
Drilling at depth below 1,500 metres encountered mineralization
that is comparable in grade and width to that obtained by previous
operators.
This new drilling has been incorporated into a new resource
estimate that is included in Agnico Eagle's December 31, 2014 reserve and resource update
(for additional details see the reserve and resource section
outlined above). The updated resources are scheduled to be
incorporated into a study that will evaluate potential production
scenarios at Upper Beaver.
The proposed budget for Kirkland
Lake in 2015 (100% basis) is approximately C$6.7 million.
At Pandora, seven holes were drilled to test the near surface
North Branch zone, and five drill holes were completed from the
101-W Exploration drift at the adjacent Lapa mine to test the
mineralization at the South Branch
target. A select summary of significant drill results from
the North and South Branch zones
at Pandora are presented in the table below.
Drill hole |
Zone |
From
(metres) |
To (metres) |
Estimated true
width (metres) |
Gold grade (g/t)
(uncapped) |
PN14-12 |
North Branch Surface |
184.4 |
193.1 |
8.7 |
5.36 |
PN14-13 |
North Branch Surface |
139.5 |
154.3 |
14.8 |
5.67 |
and |
|
215.35 |
219.05 |
3.7 |
12.05 |
PN14-17 |
South Branch UG |
544.5 |
560.5 |
16 |
5.01 |
including |
|
544.5 |
555 |
10.5 |
6.07 |
|
Drill collar coordinates* |
Drill hole ID |
UTM North |
UTM East |
Elevation
(metres
above sea
level) |
Azimuth |
Dip
(degrees) |
PN14-12 |
5345422.38 |
701106.669 |
339.389 |
185 |
-60 |
PN14-13 |
5345422.56 |
701106.675 |
339.452 |
180 |
-66 |
PN14-17 |
5345566.81 |
700583.216 |
332.023 |
190 |
-65 |
Results from the shallow drilling have validated some of the
historic results from previous operators and a follow up drill
program is being evaluated. At depth, the 101-W drift is
scheduled to be extended starting in February with diamond drilling
expected to resume at the end of the second quarter of
2015.
The proposed budget for Pandora in 2015 (100% basis) is
approximately C$3.1 million.
Lapa - Zulapa Z7 Zone Yields Higher Grades and Better
Recoveries in Q4 2014
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 1,760 tpd in the fourth quarter of 2014. This
compares with an average of 1,821 tpd in the fourth quarter of
2013. The slightly lower throughput in the 2014 period was largely
due to a reduction in the number of stopes available for mining
during the quarter compared to the 2013 period.
Minesite costs per tonne were C$109 in the fourth quarter of 2014, compared to
C$103 realized in the fourth quarter
of 2013. Costs in the 2014 period were higher due to the reason
above.
For the full year 2014, Lapa averaged 1,750 tpd, which is almost
identical to 2013 levels. Full-year minesite costs in 2014 were
C$107 per tonne, slightly below the
C$110 achieved in 2013. Costs
were lower in 2014 largely due to lower labour costs and reduced
consumption of consumables (explosives, shotcrete and mill
chemicals).
Payable production in the fourth quarter of 2014 was 25,611
ounces of gold at a total cash cost per ounce on a by-product basis
of $607. This
compares with the fourth quarter of 2013, when production was
26,323 ounces of gold at total cash cost per ounce on a by-product
basis of $626. Higher
recoveries and good cost containment resulted in lower costs during
the fourth quarter of 2014 compared to the 2013 period.
For the full year 2014, payable production was 92,622 ounces of
gold at total cash costs per ounce on a by-product basis of
$667. The prior year production
was 100,730 ounces of gold at total cash costs per ounce on a
by-product basis of $677.
Production in 2014 was lower due to reduced grades, while costs
were lower due to successful cost cutting measures implemented by
the Company.
At Lapa, 2014 and 2015 are the last two years of full production
based on the current life of mine plan. In 2016, production
is expected to exhibit a decline from the current levels.
Additional exploration drilling in the parallel Zulapa Z8 zone and
on the adjoining Pandora property could potentially extend the mine
life (see discussion under the Canadian Malartic General
Partnership).
Goldex - Higher Tonnage, Grades and Recoveries Drive
Increased Gold Production and Lower Cash Costs
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 (see
October 19, 2011 news release). In
July 2012, the M and E satellite
zones were approved for development. Mining operations at GEZ
remain suspended. Mining operations resumed on the M and E
satellite zones in September 2013.
Initial mill testing, late in the third quarter of 2013, yielded
1,505 ounces of pre-commercial gold production. The Goldex mine
achieved commercial production in the fourth quarter of 2013.
The Goldex mill processed an average of 6,251 tpd in the fourth
quarter of 2014. This compares with an average of 5,343 tpd
in the fourth quarter of 2013. The higher throughput in the 2014
period was due to better than expected underground mining rates
compared to the 2013 period.
Minesite costs per tonne were approximately C$34 in the fourth quarter of 2014, lower than
the C$37 per tonne experienced in the
fourth quarter of 2013. The decrease in costs over the
prior-year period is partly due to accelerated mining rates,
ongoing costs containment efforts and higher throughput levels.
For the full year 2014, the Goldex mill averaged 5,799 tpd,
which is higher than the 2013 throughput level. Full-year minesite
costs in 2014 were C$33 per tonne,
lower than the C$37 achieved in
2013. Costs were higher in 2014 largely due to the factors
set out above.
Payable gold production in the fourth quarter of 2014 was 29,463
ounces at a total cash cost per ounce on a by-product basis of
$583. This compares with the fourth
quarter of 2013, when production was 19,305 ounces of gold at total
cash cost per ounce on a by-product basis of $894. Higher tonnage, recoveries and good
cost containment resulted in lower costs during the fourth quarter
of 2014 compared to the 2013 period.
For the full year 2014, payable production was 100,433 ounces of
gold at total cash costs of $638 per
ounce on a by-product basis. The prior year production was
20,810 ounces of gold at total cash costs of $894 per ounce on a by-product basis.
Production in 2014 was higher than 2013 due to the full year of
contribution at Goldex.
Rehabilitation of the surface ramp portal has been completed and
rehabilitation is continuing on the pre-existing ramp to provide
access to the M3 and M4 satellite zones for conversion drilling
later this year.
Development of the exploration ramp into the DX zone (the top of
the Deep zone) has been accelerated. This ramp is designed to
provide access for additional exploration drilling, with a goal of
outlining a mineable reserve and the completion of a technical
study by late 2015 or early 2016.
The central portion of the Deep zone is believed to contain a
higher grade core. A recent hole demonstrated good continuity of
mineralization in this area, yielding 4.18 g/t gold over 157.5
metres.
Drill hole |
Zone |
From
(metres) |
To (metres) |
Estimated true
width (metres) |
Gold grade (g/t)
(uncapped) |
GD76-004 |
Deep |
222.0 |
379.5 |
157.5 |
4.18 |
|
Drill collar coordinates* |
Drill hole ID |
UTM North |
UTM East |
Elevation
(metres
above sea level) |
Azimuth |
Dip
(degrees) |
GD76-004 |
5330741.0859 |
286831.4141 |
4603.2032 |
69.44 |
-86.92 |
Development of the Deep zone would have the potential to further
extend the mine's life. Given the strong operational performance
achieved to date, the Goldex mining approach may also open up other
mining opportunities in the Abitibi region.
Meadowbank - Record Gold Production and Lower Costs in
2014
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in
March 2010.
The Meadowbank mill processed an average of 11,160 tpd in the
fourth quarter of 2014, compared to the 11,398 tpd achieved in the
fourth quarter of 2013. For the full year 2014, the
Meadowbank mill processed an average of 11,313 tpd, compared to
11,350 tpd in the full year 2013. Mill throughput for the
fourth quarter 2014 was lower than the comparable period of 2013
due to variable hardness of the ore. Year-over-year mill throughput
levels were relatively stable due to ongoing improvements in
equipment availability and maintenance.
Minesite costs per tonne were a record low C$72 in the fourth quarter and C$73 for the full year of 2014. These costs
were lower than the C$78 per tonne in
the fourth quarter and full year 2013, respectively. The
improvement in cost per tonne was primarily driven by improved
productivity, the 2014 cost management program and ongoing cost
controls, compared to the respective 2013 period.
Payable production in the fourth quarter of 2014 was 86,716
ounces of gold at total cash costs per ounce on a by-product basis
of $757. This compares with the
fourth quarter of 2013 when 123,433 ounces were produced at total
cash costs per ounce on a by-product basis of $629. The lower production and higher costs
in the 2014 period compared to the 2013 period are primarily due to
fewer treated tonnes and lower grades.
Full year 2014 payable gold production was a record 452,877
ounces at total cash costs per ounce on a by-product basis of gold
of $599. In 2013, the mine
produced 430,613 ounces at total cash costs per ounce on a
by-product basis of $723. The
increase in year over year production and decline in total cash
costs is primarily due to the mining of higher than expected grades
in the Goose pit in the first half of the year, consistently high
crusher throughput levels, slightly better recoveries and strong
cost containment programs.
Production levels are expected to gradually decline from 2015 to
2017 due to a decline in grade as the current reserve base is
depleted. In 2015, approximately 45% of the production is
expected to occur in the first half of the year. Production is
expected to increase in the second half of 2015 due to higher
grades being mined from the Portage E3 pit.
Last year at Meadowbank, approximately 246,000 ounces were
removed from reserves at the Vault deposit due to a change in the
gold price assumption used to calculate reserves at the end of
2013. Given the current favourable US to Canadian dollar
foreign exchange rate and lower fuel costs, the Company is
evaluating the potential for a portion of these ounces to be added
back into the mine plan at Meadowbank starting in 2017 to extend
the mine life. A decision to proceed with the extraction of
these additional ounces will likely be made by the second half of
2015.
In addition, a 40,000 metre drill program is planned at Amaruq
starting in March 2015 to expand the
initial 1.5 million ounce inferred resource base with the goal of
potentially developing the deposit as a satellite operation to
Meadowbank.
Kittila - Recent Mill Expansion and Record Underground
Tonnage Drives Higher Throughput Levels in Q4 2014
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
The Kittila mill processed an average of 3,980 tpd in the fourth
quarter of 2014 compared to the 3,349 tpd in the fourth quarter of
2013. Minesite costs per tonne at Kittila were approximately €75 in
the fourth quarter of 2014, compared to €70 in the fourth quarter
of 2013. Costs increased in the fourth quarter of 2014 due to
the increased usage of consumables related to the mill expansion
(particularly on chemicals, electricity and grinding media) when
compared with the 2013 period.
The mill expansion was completed ahead of schedule by six months
and below the forecast budget of $103
million. Throughput continues to ramp-up to design
capacity of 4,000 tpd and the Company expects unit costs to improve
once steady state operations are achieved.
For the full year 2014, the mill processed an average of 3,168
tpd as compared with 2013 when the mill processed an average of
2,559 tpd. The increase in throughput relates to the
completion of the mill expansion at the end of September 2014. For the full year 2014, the
minesite costs per tonne were €78, compared to €73 in 2013.
The increased minesite costs per tonne in the 2014 period primarily
relate to the reasons mentioned above.
Fourth quarter 2014 payable gold production at Kittila was
43,130 ounces with a total cash cost per ounce on a by-product
basis of $809. In the fourth
quarter of 2013, the mine produced 41,710 ounces at total cash
costs per ounce on a by-product basis of $679. The higher production and higher
costs in the 2014 period relate to the completion of the mill
expansion which continues to ramp-up to design capacity.
Costs increased in the fourth quarter of 2014 due to the increased
usage of consumables related to the mill expansion (particularly on
chemicals, electricity and grinding media) which also affected
recoveries during the ramp-up of the mill expansion.
For the full year 2014, payable gold production from Kittila was
141,742 ounces at total cash costs per ounce on a by-product basis
of $845. In 2013, the mine
produced 146,421 ounces of gold at total cash costs per ounce on a
by-product basis of $598. The
lower production in 2014 was largely due to the planned mill
shutdown in September 2014 to tie-in
the expansion. The higher total cash costs are largely due to
lower production and higher costs associated with the usage of
consumables as mentioned above.
Ongoing cost initiatives include projects to utilize the waste
heat produced from the oxygen plants in other areas of the mine
(i.e., buildings and mine) and ventilation management to reduce
energy costs.
Drilling on the Rimpi Zone at Kittila has outlined a significant
zone of mineralization with potentially wider widths and better
grades than those currently being mined. The main underground
ramp at Kittila is being extended to reach the Rimpi Zone and a new
surface ramp is also being developed to access the shallower
portions of the Rimpi deposit. The main ramp will provide
further drill access to test for depth extensions of the known
mineralized zones.
At the Kuotko deposit, located approximately 15 kilometers north
of Kittila, a drilling program is scheduled to commence in
March 2015 to infill and expand the
existing approximately 170,000 ounce inferred resource (1.8 million
tonnes at 2.9 g/t gold). Upon completion of the drilling,
studies will be carried out to assess the viability of mining the
deposit via an open pit.
Southern Business Operating Review
Pinos Altos - Shaft
Commissioning on Schedule for Late 2015
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
The Pinos Altos mill processed
5,466 tpd in the fourth quarter of 2014, compared to 5,313 tpd per
day processed in the fourth quarter of 2013. During the fourth
quarter of 2014, approximately 131,000 tonnes of ore were stacked
on the leach pad at Pinos Altos,
compared to 184,300 tonnes in the comparable 2013 period. Minesite
cost per tonne at Pinos Altos was
$48 in the fourth quarter of 2014
slightly higher than the $46 in the
fourth quarter of 2013. The difference in minesite cost per
tonne was largely attributable to variations in the proportion of
heap leach ore to milled ore and open pit ore to underground ore,
and routine fluctuations in the waste to ore stripping ratio in the
open pit mines.
For the full year 2014, the Pinos
Altos mill processed an average of 5,350 tpd, compared to
5,262 tpd processed in 2013. In 2014, approximately 567,800 tonnes
of ore were stacked on the leach pad at Pinos Altos, compared to approximately 805,200
tonnes in 2013. Minesite cost per tonne at Pinos Altos for full year period in 2014 were
approximately $48, compared to
approximately $43 in 2013, with the
difference due to the reasons mentioned above.
Payable production in the fourth quarter of 2014 was 40,670
ounces of gold at a total cash cost per ounce on a by-product basis
of $597. This compares with
production of 46,490 ounces at a total cash cost per ounce on a
by-product basis of $443 in the
fourth quarter of 2013. Lower production in 2014 is largely due to
slightly lower grades processed over the comparable period last
year. The increase in the year over year total cash cost per ounce
is largely due to lower silver production and a decline in realized
silver prices compared to the prior year period.
For the full year 2014, Pinos
Altos produced 171,019 ounces of gold at a total cash cost
per ounce on a by-product basis of $533. This is in contrast to 2013 when the mine
produced 181,773 ounces of gold at a total cash cost per ounce on a
by-product basis of $372. The lower
ounces produced and increase in the cash costs per ounce on a
year-over-year basis is largely due to the reasons mentioned
above.
The $106 million Pinos Altos shaft sinking project remains on
schedule for completion in 2016. Shaft sinking is ongoing
(currently at a depth of approximately 493 metres). When the shaft
is completed, 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 over the next several years.
The Company continues to evaluate a number of regional satellite
opportunities. A 6,000 metre in-fill and conversion drill
program is scheduled to begin on the Sinter deposit in Q1
2015. This data will be incorporated into a scoping study
along with metallurgical testing and geotechnical data in order to
better understand the development potential of this zone.
Creston Mascota - Record Q4 and Annual Tonnes Stacked
The Creston Mascota heap leach has been operating as a satellite
operation to the Pinos Altos mine
since late 2010.
Approximately 550,800 tonnes of ore were stacked on the Creston
Mascota leach pad during the fourth quarter of 2014, compared to
approximately 325,500 tonnes stacked in the fourth quarter of 2013.
The new agglomerator installed in the third quarter of 2014 allowed
for an increase in crushed ore processing capacity compared to the
2013 period. Minesite costs per tonne at Creston Mascota were
$14 in the fourth quarter of 2014,
compared to $15 in the fourth quarter
of 2013.
For the full year 2014, approximately 1,793,800 tonnes of ore
were stacked on the Creston Mascota leach pad, compared to
approximately 1,276,200 tonnes stacked in the full year 2013.
Minesite costs per tonne at Creston Mascota were $16 for the full year 2014, compared to
$16 in 2013. Fewer tonnes were
stacked in the 2013 period due to the temporary suspension of
activities on the Phase I leach pad.
Payable gold production at Creston Mascota in the fourth quarter
of 2014 was 12,989 ounces at a total cash cost per ounce on a
by-product basis of $556. This
compares to 10,666 ounces at a total cash cost per ounce on a
by-product basis of $450 during the
fourth quarter of 2013. Production was higher in the 2014 period
due to more tonnes stacked, slightly offset by lower grades,
compared to the 2014 period. Stacking more tonnes in the
fourth quarter of 2014 resulted in a higher total cost that was not
completely offset by the increased ounces, resulting in a higher
total cash cost per ounce compared to the comparable period in
2013.
Payable gold production for the full year 2014 totaled 47,842
ounces at a total cash cost per ounce on a by-product basis of
$578, compared to 34,027 ounces at a
total cash cost per ounce on a by-product basis of $509 in 2013. The lower production in 2013 is
reflective of the temporary shutdown of the operation from January
until April 2013. Costs were higher
in the 2014 period for the same reasons outlined above.
In 2015, construction is expected to begin on the Phase 4 leach
pad at Creston Mascota. Evaluation of the Bravo satellite zone will continue with a
5,000 metre infill and conversion drilling program expected to
commence around mid-2015.
La India - Record Quarterly
Gold Production
The La India mine 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 included 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. Design,
permitting, construction and start-up of the La India mine were
completed within 22 months of the acquisition.
In 2013, the mine reported 3,180 ounces of pre-commercial
production, and commercial production was declared as at
February 1, 2014.
Approximately 1,426,700 tonnes of ore were stacked on the La
India leach pad during the fourth quarter of 2014, compared to
approximately 595,000 tonnes stacked in the fourth quarter of 2013.
Minesite costs per tonne at La India were $9 in the fourth quarter of 2014.
Payable gold production at La India in the fourth quarter of
2014 was 23,274 ounces at a total cash cost per ounce on a
by-product basis of $496.
For the full year 2014, approximately 4,773,200 tonnes of ore
were stacked on the La India leach pad. Minesite costs per
tonne at La India were
$8 for the full year 2014.
Payable gold production for the full year 2014 totaled 75,093
ounces at a total cash cost per ounce on a by-product basis of
$487.
Installation of the fine material bypass system in the crushing
circuit was in full operation in the fourth quarter of 2014, which
resulted in 42% more tonnes being crushed in the fourth quarter of
2014 compared to the previous quarter's average. Engineering
and design of the second phase leach pad commenced in the fourth
quarter of 2014 with detailed engineering and construction
bids expected later in the first quarter of 2015.
The Company is evaluating exploration programs to test resource
halos around the current pits and to test for mineralization
between the currently defined ore bodies. In addition, initial
studies are underway to evaluate the potential to expand production
at La India.
Annual General Meeting
Friday, May 1, 2015 at
11:00 am (E.D.T.)
Sheraton Centre Toronto Hotel (Dominion Ballroom)
123 Queen Street West
Toronto, ON M5H 2M9
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its nine mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these regions as well as in the United States. 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'' and ''minesite costs per tonne'' and "all-in
sustaining cost per ounce" that are not recognized measures under
IFRS. These data may not be comparable to data presented by other
gold producers. For a reconciliation of these measures to the most
directly comparable financial information presented in the
consolidated financial statements prepared in accordance with IFRS
and for an explanation of how management uses these measures, see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. The total cash cost 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). The total cash cost 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. The total cash cost per ounce of gold produced on a
co-product basis is calculated in the same manner as the total cash
cost 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 cost 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 cost 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 cost 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 are used to show the full
cost of gold production from current operations. The Company
calculates all-in sustaining costs per ounce of gold produced as
the aggregate of total cash costs 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 Company's methodology for calculating all-in sustaining costs
may not be similar to the methodology used by other producers that
disclose all-in sustaining costs. The Company may change the
methodology it uses to calculate all-in sustaining costs 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 and 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 and minesite costs per tonne. The estimates are based upon
the total cash costs per ounce, all-in sustaining costs 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.
The scientific and technical information contained in this news
release relating to Northern Business operations has been approved
by Christian Provencher, Ing.,
Vice-President, Canada and a
"Qualified Person" for the purposes of NI 43-101. The
scientific and technical information contained in this news release
relating to Southern Business operations has been approved by
Tim Haldane, P.Eng., Senior
Vice-President, Operations - USA
and Latin America and a "Qualified
Person" for the purposes of NI 43-101. The scientific and
technical information contained in this news release relating to
exploration has been approved by Alain
Blackburn, Ing., Senior Vice-President, Exploration and a
"Qualified Person" for the purposes of NI 43-101.
The scientific and technical information relating to Agnico
Eagle's reserves and resources contained herein has been approved
by Daniel Doucet, Senior Corporate
Director, Reserve Development. Mr. Doucet is a designated Ing. with
the Ordredes ingénieurs du Québec and a qualified person as defined
by NI 43-101.
Detailed Mineral Reserve and Resource Data (as at
December 31, 2014)
|
Au |
Ag |
Cu |
Zn |
Pb |
Au |
Tonnes |
Category and Operation |
(g/t) |
(g/t) |
(%) |
(%) |
(%) |
(000s oz) |
(000s) |
Proven Mineral Reserve |
Northern Business |
|
|
|
|
|
|
|
LaRonde (underground) |
3.76 |
21.84 |
2.95 |
4.58 |
0.51 |
538 |
4,460 |
Canadian Malartic (open pit) (50%) |
0.92 |
|
|
|
|
736 |
24,969 |
Lapa (underground) |
5.87 |
|
|
|
|
157 |
832 |
Goldex (underground) |
1.70 |
|
|
|
|
11 |
203 |
Kittila (open pit) |
3.53 |
|
|
|
|
23 |
207 |
Kittila (underground) |
4.67 |
|
|
|
|
107 |
714 |
Kittila Total Proven |
4.41 |
|
|
|
|
131 |
921 |
Meadowbank (open pit) |
1.50 |
|
|
|
|
53 |
1,090 |
Meliadine (open pit) |
7.31 |
|
|
|
|
8 |
34 |
Southern Business |
|
|
|
|
|
|
|
Pinos Altos (open pit) |
1.93 |
65.87 |
|
|
|
3 |
48 |
Pinos Altos (underground) |
3.30 |
86.68 |
|
|
|
254 |
2,394 |
Pinos Altos Total Proven |
3.27 |
86.27 |
|
|
|
257 |
2,441 |
Creston Mascota (open pit) |
0.76 |
8.60 |
|
|
|
5 |
187 |
La India (open pit) |
0.53 |
8.62 |
|
|
|
2 |
99 |
Subtotal Proven Mineral Reserve |
1.67 |
|
|
|
|
1,897 |
35,236 |
|
Probable Mineral Reserve |
Northern Business |
|
|
|
|
|
|
|
LaRonde (underground) |
5.60 |
18.70 |
2.37 |
6.89 |
0.36 |
2,893 |
16,072 |
Canadian Malartic (open pit) (50%) |
1.10 |
|
|
|
|
3,593 |
101,978 |
Lapa (underground) |
5.50 |
|
|
|
|
13 |
74 |
Goldex (underground) |
1.49 |
|
|
|
|
329 |
6,893 |
Kittila (open pit) |
3.46 |
|
|
|
|
15 |
139 |
Kittila (underground) |
4.96 |
|
|
|
|
4,378 |
27,475 |
Kittila Total Probable |
4.95 |
|
|
|
|
4,393 |
27,614 |
Meadowbank (open pit) |
3.24 |
|
|
|
|
1,116 |
10,705 |
Meliadine (open pit) |
5.13 |
|
|
|
|
638 |
3,862 |
Meliadine (underground) |
8.33 |
|
|
|
|
2,690 |
10,048 |
Meliadine Total Probable |
7.44 |
|
|
|
|
3,327 |
13,910 |
Southern Business |
|
|
|
|
|
|
|
Pinos Altos (open pit) |
3.02 |
75.28 |
|
|
|
373 |
3,840 |
Pinos Altos (underground) |
2.95 |
79.70 |
|
|
|
1,132 |
11,948 |
Pinos Altos Total Probable |
2.97 |
78.63 |
|
|
|
1,506 |
15,788 |
Creston Mascota (open pit) |
1.27 |
13.63 |
|
|
|
231 |
5,657 |
La India (open pit) |
0.85 |
6.06 |
|
|
|
677 |
24,783 |
Subtotal Probable Mineral Reserve |
2.52 |
|
|
|
|
18,080 |
223,475 |
Northern Total Proven and Probable Reserves |
2.57 |
|
|
|
|
17,299 |
209,756 |
Southern Total Proven and Probable Reserves |
1.70 |
|
|
|
|
2,678 |
48,955 |
Total Proven and Probable Mineral Reserves |
2.40 |
|
|
|
|
19,976 |
258,711 |
|
Au |
Ag |
Cu |
Zn |
Pb |
Tonnes |
Category and Operation |
(g/t) |
(g/t) |
(%) |
(%) |
(%) |
(000s) |
Measured Mineral Resource |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
Canadian Malartic (open pit) (50%) |
0.84 |
|
|
|
|
2,843 |
Goldex (underground) |
1.86 |
|
|
|
|
12,360 |
Kittila (underground) |
2.78 |
|
|
|
|
820 |
Meadowbank (open pit) |
1.07 |
|
|
|
|
432 |
Hammond Reef (open pit) (50%) |
0.70 |
|
|
|
|
82,831 |
Southern Business |
|
|
|
|
|
|
La India (open pit) |
0.38 |
3.06 |
|
|
|
2,667 |
Subtotal Measured Mineral Resource |
0.85 |
|
|
|
|
101,953 |
Indicated Mineral Resource |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
LaRonde (underground) |
3.26 |
23.35 |
0.24 |
1.01 |
0.11 |
6,791 |
Canadian Malartic (open pit) (50%) |
0.85 |
|
|
|
|
32,708 |
Lapa (underground) |
4.29 |
|
|
|
|
1,067 |
Goldex (underground) |
1.97 |
|
|
|
|
21,409 |
Kittila (open pit) |
2.85 |
|
|
|
|
89 |
Kittila (underground) |
2.98 |
|
|
|
|
13,262 |
Kittila Total Indicated |
2.98 |
|
|
|
|
13,351 |
Meadowbank (open pit) |
2.74 |
|
|
|
|
4,747 |
Meadowbank (underground) |
4.85 |
|
|
|
|
2,341 |
Meadowbank Total Indicated |
3.44 |
|
|
|
|
7,088 |
Meliadine (open pit) |
4.31 |
|
|
|
|
7,685 |
Meliadine (underground) |
5.52 |
|
|
|
|
12,561 |
Meliadine Total Indicated |
5.06 |
|
|
|
|
20,246 |
Akasaba |
0.77 |
|
|
|
|
8,130 |
Bousquet (open pit) |
1.79 |
|
|
|
|
11,044 |
Bousquet (underground) |
5.63 |
|
|
|
|
1,704 |
Bousquet Total Indicated |
2.31 |
|
|
|
|
12,748 |
Ellison (underground) |
4.54 |
|
|
|
|
429 |
Hammond Reef (open pit) (50%) |
0.57 |
|
|
|
|
21,377 |
Upper Beaver (underground) (50%) |
7.00 |
|
0.26 |
|
|
3,211 |
Swanson (open pit) |
1.93 |
|
|
|
|
504 |
Southern Business |
|
|
|
|
|
|
Pinos Altos (open pit) |
1.16 |
21.31 |
|
|
|
1,101 |
Pinos Altos (underground) |
1.91 |
46.46 |
|
|
|
10,836 |
Pinos Altos Total Indicated |
1.84 |
44.14 |
|
|
|
11,938 |
Creston Mascota (open pit) |
0.68 |
4.69 |
|
|
|
2,229 |
La India (open pit) |
0.39 |
0.20 |
|
|
|
51,799 |
Subtotal Indicated Mineral Resource |
1.77 |
|
|
|
|
215,026 |
Northern Total Measured and Indicated
Resources |
1.70 |
|
|
|
|
248,346 |
Southern Total Measured and Indicated
Resources |
0.65 |
|
|
|
|
68,633 |
Total Measured & Indicated Mineral
Resources |
1.47 |
|
|
|
|
316,979 |
|
Au |
Ag |
Cu |
Zn |
Pb |
Tonnes |
Category and Operation |
(g/t) |
(g/t) |
(%) |
(%) |
(%) |
(000s) |
Inferred Mineral Resource |
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
LaRonde (underground) |
4.23 |
17.40 |
0.26 |
0.84 |
0.07 |
8,794 |
Canadian Malartic (open pit) (50%) |
0.76 |
|
|
|
|
22,655 |
Lapa (open pit Zulapa) |
3.14 |
|
|
|
|
391 |
Lapa (underground) |
8.00 |
|
|
|
|
724 |
Lapa Total Inferred |
6.30 |
|
|
|
|
1,114 |
Goldex (underground) |
1.64 |
|
|
|
|
29,241 |
Kittila (open pit) |
3.79 |
|
|
|
|
346 |
Kittila (underground) |
4.32 |
|
|
|
|
8,546 |
Kittila Total Inferred |
4.30 |
|
|
|
|
8,892 |
Meadowbank (open pit) |
3.15 |
|
|
|
|
1,108 |
Meadowbank (underground) |
4.36 |
|
|
|
|
2,213 |
Meadowbank Total Inferred |
3.96 |
|
|
|
|
3,321 |
Amaruq (open pit) |
6.60 |
|
|
|
|
4,819 |
Amaruq (underground) |
8.34 |
|
|
|
|
1,783 |
Amaruq Total Inferred |
7.07 |
|
|
|
|
6,603 |
Meliadine (open pit) |
5.42 |
|
|
|
|
1,031 |
Meliadine (underground) |
7.83 |
|
|
|
|
13,053 |
Meliadine Total Inferred |
7.65 |
|
|
|
|
14,083 |
Bousquet (open pit) |
1.16 |
|
|
|
|
679 |
Bousquet (underground) |
4.54 |
|
|
|
|
3,888 |
Bousquet Total Inferred |
4.04 |
|
|
|
|
4,567 |
Ellison (underground) |
4.56 |
|
|
|
|
1,263 |
Akasaba (open pit) |
0.98 |
|
0.39 |
|
|
65 |
Hammond Reef (open pit) (50%) |
0.74 |
|
|
|
|
251 |
Upper Beaver (open pit) (50%) |
1.99 |
|
0.20 |
|
|
1,957 |
Upper Beaver (underground) (50%) |
4.66 |
|
0.30 |
|
|
2,654 |
Upper Beaver Total Inferred (50%) |
3.53 |
|
0.26 |
|
|
4,611 |
Kuotko, Finland (open pit) |
2.89 |
|
|
|
|
1,823 |
Kylmakangas, Finland (underground) |
4.11 |
31.11 |
|
|
|
1,896 |
Southern Business |
|
|
|
|
|
|
Pinos Altos (open pit) |
0.95 |
22.45 |
|
|
|
10,773 |
Pinos Altos (underground) |
2.77 |
51.97 |
|
|
|
1,872 |
Pinos Altos Total Inferred |
1.22 |
26.82 |
|
|
|
12,645 |
Creston Mascota (open pit) |
1.07 |
13.98 |
|
|
|
4,462 |
La India (open pit) |
0.37 |
0.04 |
|
|
|
82,562 |
Northern Total Inferred Resource |
3.38 |
|
|
|
|
109,177 |
Southern Total Inferred Resource |
0.51 |
|
|
|
|
99,669 |
Total Inferred Resource |
2.01 |
|
|
|
|
208,847 |
Tonnage amounts and contained metal amounts presented in this
table have been rounded to the nearest thousand. Amounts
presented in this table may not add up due to rounding.
Reserves are not a sub-set of resources.
Forward-Looking Statements
The information in this news release has been prepared as at
February 11, 2015. Certain statements
contained in this document 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 document, the words
"anticipate", "expect", "estimate", "forecast", "will", "planned"
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,
minesite costs per tonne, all-in sustaining costs 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, and projected exploration expenditures, including costs
and other estimates upon which such projections are based;
estimates of depreciation expense, general and administrative
expense and tax rates; the impact of maintenance shutdowns;
statements regarding timing and amounts of capital expenditures and
other assumptions; estimates of future reserves, resources, mineral
production, optimization efforts and sales; estimates of mine life;
estimates of future mining costs, total cash costs, minesite costs,
all-in sustaining costs and other expenses; estimates of future
capital expenditures and other cash needs, and expectations as to
the funding thereof; statements and information 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 reserves and 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 document 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, 2103
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2013 ("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 and expansion at each of Agnico Eagle's
properties proceeds on a basis consistent with current expectations
and plans; that the relevant metals 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 and information. 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, capital expenditures, and other
costs; currency 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 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 document, 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.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements and information. For a
detailed breakdown of the Company's reserve and resource position
see the AIF or Form 40-F.
Notes to Investors Regarding the Use of
Resources
Cautionary Note to Investors Concerning Estimates of Measured
and Indicated Resources
This document uses the terms "measured resources" and "indicated
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 reserves.
Cautionary Note to Investors Concerning Estimates of Inferred
Resources
This document also uses the term "inferred resources". Investors
are advised that while this term is recognized and required by
Canadian regulations, the SEC does not recognize it. "Inferred
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 part or all of an inferred resource exists, or is
economically or legally mineable.
Scientific and Technical Data
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 Mines Limited reports
mineral resource and reserve estimates in accordance with the CIM
guidelines for the estimation, classification and reporting of
resources and reserves in accordance with the Canadian securities
regulatory authorities' (the "CSA") National Instrument 43-101
Standards of Disclosure for Mineral Projects ("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 reserves under Industry Guide
7. Agnico Eagle uses certain terms in this news release, such
as "measured", "indicated", and "inferred", and "resources" that
the SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC.
In prior periods, reserves 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 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
reserves estimates at all mines and advanced projects as of
December 31, 2014, reported by the
Company on February 11, 2015, are
$1,150 per ounce gold, $18.00 per ounce silver, $1.00 per pound zinc, $3.00 per pound copper, $0.91 per pound lead and C$/US$, US$/Euro and
MXP/US$ exchange rates of 1.08, 1.30 and 13.00, respectively.
For the reserves estimate at the Canadian Malartic mine, the
Company has decided to continue to report the reserves estimated as
of June 15, 2014, reported by the
Company in a news release dated August 13,
2014, minus the production to the end of 2014. The
assumptions used were $1,300 per
ounce gold, a cut-off grade between 0.28 g/t and 0.35 g/t gold
(depending on the deposit), and a C$/US$ exchange rate of 1.10.
NI 43-101 requires mining companies to disclose reserves and
resources using the subcategories of "proven" reserves, "probable"
reserves, "measured" resources, "indicated" resources and
"inferred" 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 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.
The mineral reserves presented in this disclosure are separate
from and not a portion of the mineral resources.
Property/Project name
and location |
Date of most recent
Technical Report (NI
43-101) filed on
SEDAR |
LaRonde, Bousquet &
Ellison, Quebec, Canada |
March 23, 2005 |
Canadian Malartic, Quebec, Canada |
June 16, 2014 |
Kittila, Kuotko and
Kylmakangas, Finland |
March 4, 2010 |
Swanson, Quebec,
Canada |
|
Meadowbank, Nunavut,
Canada |
February 15, 2012 |
Goldex, Quebec, Canada |
October 14, 2012 |
Lapa, Quebec, Canada |
June 8, 2006 |
Meliadine, Nunavut,
Canada |
March 8, 2011 |
Akasaba, Quebec, Canada |
|
Amaruq, Nunavut, Canada |
|
Hammond Reef, Ontario, Canada |
July 2, 2013 |
Upper Beaver (Kirkland Lake project),
Ontario, Canada |
November 5, 2012 |
Pinos Altos and Creston Mascota, Mexico |
March 25, 2009 |
La India, Mexico |
August 31, 2012 |
Additional information about each of the mineral projects that
is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4
(a), (c) and (d) can be found in Technical Reports, which may be
found at www.sedar.com. Other important operating information can
be found in the Company's AIF and Form 40-F.
AGNICO EAGLE MINES
LIMITED |
SUMMARY OF OPERATIONS KEY
PERFORMANCE INDICATORS |
(thousands of United States
dollars, except where noted) |
(Unaudited) |
|
|
Three Months Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
Operating margin(i) by
mine: |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
33,535 |
|
$ |
27,245 |
|
$ |
120,058 |
|
$ |
101,260 |
|
Lapa mine |
|
16,058 |
|
|
18,142 |
|
|
54,198 |
|
|
71,796 |
|
Goldex mine(ii) |
|
20,694 |
|
|
6,079 |
|
|
60,738 |
|
|
6,079 |
|
Meadowbank mine |
|
39,838 |
|
|
80,819 |
|
|
305,032 |
|
|
273,059 |
|
Canadian Malartic
mine(iii) |
|
39,094 |
|
|
- |
|
|
75,984 |
|
|
- |
|
Kittila mine |
|
14,313 |
|
|
27,926 |
|
|
59,627 |
|
|
111,789 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
27,122 |
|
|
38,224 |
|
|
128,441 |
|
|
186,244 |
|
Creston Mascota deposit at Pinos
Altos |
|
8,392 |
|
|
8,309 |
|
|
31,566 |
|
|
22,097 |
|
La India mine(iv) |
|
16,727 |
|
|
- |
|
|
56,563 |
|
|
- |
Total operating
margin(i) |
|
215,773 |
|
|
206,744 |
|
|
892,207 |
|
|
772,324 |
Amortization of property, plant and
mine development |
|
139,095 |
|
|
90,788 |
|
|
433,628 |
|
|
313,890 |
Impairment loss |
|
- |
|
|
1,014,688 |
|
|
- |
|
|
1,014,688 |
Exploration, corporate and other |
|
74,390 |
|
|
61,643 |
|
|
269,441 |
|
|
262,033 |
Income (loss) before income and mining
taxes |
|
2,288 |
|
|
(960,375) |
|
|
189,138 |
|
|
(818,287) |
Income and mining taxes expense |
|
23,571 |
|
|
(180,103) |
|
|
106,168 |
|
|
(131,582) |
Net income (loss) for the
period |
$ |
(21,283) |
|
$ |
(780,272) |
|
$ |
82,970 |
|
$ |
(686,705) |
Net income (loss) per share —
basic (US$) |
$ |
(0.10) |
|
$ |
(4.49) |
|
$ |
0.43 |
|
$ |
(3.97) |
Net income (loss) per share —
diluted (US$) |
$ |
(0.12) |
|
$ |
(4.49) |
|
$ |
0.39 |
|
$ |
(3.97) |
Cash flows: |
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating
activities |
$ |
163,956 |
|
$ |
140,789 |
|
$ |
668,324 |
|
$ |
481,043 |
Cash used in investing activities |
$ |
(123,126) |
|
$ |
(143,928) |
|
$ |
(851,619) |
|
$ |
(687,220) |
Cash provided by (used in) financing
activities |
$ |
(18,685) |
|
$ |
30,811 |
|
$ |
229,236 |
|
$ |
48,729 |
Realized prices (US$): |
|
|
|
|
|
|
|
|
|
|
|
Gold (per ounce) |
$ |
1,202 |
|
$ |
1,333 |
|
$ |
1,261 |
|
$ |
1,366 |
Silver (per ounce) |
$ |
15.60 |
|
$ |
20.20 |
|
$ |
18.27 |
|
$ |
22.42 |
Zinc (per tonne) |
$ |
2,216 |
|
$ |
1,958 |
|
$ |
2,224 |
|
$ |
1,907 |
Copper (per tonne) |
$ |
5,961 |
|
$ |
7,275 |
|
$ |
6,596 |
|
$ |
7,160 |
Payable
production(v): |
|
|
|
|
|
|
|
|
|
|
|
Gold (ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
59,316 |
|
|
51,336 |
|
|
204,652 |
|
|
181,781 |
|
|
Lapa mine |
|
25,611 |
|
|
26,323 |
|
|
92,622 |
|
|
100,730 |
|
|
Goldex mine(ii) |
|
29,463 |
|
|
19,305 |
|
|
100,433 |
|
|
20,810 |
|
|
Meadowbank mine |
|
86,716 |
|
|
123,433 |
|
|
452,877 |
|
|
430,613 |
|
|
Canadian Malartic mine(iii) |
|
66,369 |
|
|
- |
|
|
143,008 |
|
|
- |
|
|
Kittila mine |
|
43,130 |
|
|
41,710 |
|
|
141,742 |
|
|
146,421 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
40,670 |
|
|
46,490 |
|
|
171,019 |
|
|
181,773 |
|
|
Creston Mascota deposit at Pinos Altos |
|
12,989 |
|
|
10,666 |
|
|
47,842 |
|
|
34,027 |
|
|
La India mine(iv) |
|
23,274 |
|
|
3,180 |
|
|
75,093 |
|
|
3,180 |
Total gold (ounces) |
|
387,538 |
|
|
322,443 |
|
|
1,429,288 |
|
|
1,099,335 |
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
357 |
|
|
496 |
|
|
1,275 |
|
|
2,102 |
|
|
Meadowbank mine |
|
50 |
|
|
29 |
|
|
135 |
|
|
100 |
|
|
Canadian Malartic mine(iii) |
|
73 |
|
|
- |
|
|
151 |
|
|
- |
|
|
Kittila mine |
|
2 |
|
|
2 |
|
|
7 |
|
|
6 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
424 |
|
|
548 |
|
|
1,731 |
|
|
2,366 |
|
|
Creston Mascota deposit at Pinos Altos |
|
28 |
|
|
15 |
|
|
88 |
|
|
46 |
|
|
La India mine(iv) |
|
67 |
|
|
3 |
|
|
178 |
|
|
3 |
Total Silver (thousands of
ounces) |
|
1,000 |
|
|
1,093 |
|
|
3,564 |
|
|
4,623 |
Zinc (tonnes) |
|
2,431 |
|
|
4,472 |
|
|
10,515 |
|
|
19,814 |
Copper (tonnes) |
|
1,395 |
|
|
1,232 |
|
|
4,997 |
|
|
4,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable metal sold: |
|
|
|
|
|
|
|
|
|
|
|
Gold (ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
57,761 |
|
|
50,763 |
|
|
202,338 |
|
|
184,489 |
|
|
Lapa mine |
|
28,053 |
|
|
28,784 |
|
|
92,089 |
|
|
102,673 |
|
|
Goldex mine(ii) |
|
31,701 |
|
|
16,991 |
|
|
100,326 |
|
|
16,991 |
|
|
Meadowbank mine |
|
87,742 |
|
|
130,928 |
|
|
452,023 |
|
|
430,748 |
|
|
Canadian Malartic mine(iii) |
|
66,220 |
|
|
- |
|
|
142,689 |
|
|
- |
|
|
Kittila mine |
|
42,609 |
|
|
43,442 |
|
|
139,766 |
|
|
148,561 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
44,894 |
|
|
45,117 |
|
|
176,468 |
|
|
182,964 |
|
|
Creston Mascota deposit at Pinos Altos |
|
12,849 |
|
|
10,496 |
|
|
46,698 |
|
|
31,956 |
|
|
La India mine(iv) |
|
24,019 |
|
|
- |
|
|
72,940 |
|
|
- |
Total gold (ounces) |
|
395,848 |
|
|
326,521 |
|
|
1,425,338 |
|
|
1,098,382 |
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
368 |
|
|
525 |
|
|
1,278 |
|
|
2,179 |
|
|
Meadowbank mine |
|
49 |
|
|
28 |
|
|
133 |
|
|
99 |
|
|
Canadian Malartic mine(iii) |
|
68 |
|
|
- |
|
|
140 |
|
|
- |
|
|
Kittila mine |
|
2 |
|
|
1 |
|
|
6 |
|
|
5 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
456 |
|
|
553 |
|
|
1,823 |
|
|
2,367 |
|
|
Creston Mascota deposit at Pinos Altos |
|
34 |
|
|
14 |
|
|
84 |
|
|
44 |
|
|
La India mine(iv) |
|
66 |
|
|
- |
|
|
169 |
|
|
- |
Total Silver (thousands of
ounces): |
|
1,043 |
|
|
1,121 |
|
|
3,633 |
|
|
4,694 |
Zinc (tonnes) |
|
2,467 |
|
|
5,123 |
|
|
10,535 |
|
|
20,432 |
Copper (tonnes) |
|
1,399 |
|
|
1,227 |
|
|
5,003 |
|
|
4,838 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced - Co-product basis (US$)(vi): |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
898 |
|
$ |
1,197 |
|
$ |
1,055 |
|
$ |
1,433 |
|
Lapa mine |
|
609 |
|
|
626 |
|
|
667 |
|
|
678 |
|
Goldex mine(ii) |
|
583 |
|
|
894 |
|
|
638 |
|
|
894 |
|
Meadowbank mine |
|
766 |
|
|
634 |
|
|
604 |
|
|
729 |
|
Canadian Malartic
mine(iii) |
|
702 |
|
|
- |
|
|
721 |
|
|
- |
|
Kittila mine(vii) |
|
810 |
|
|
681 |
|
|
846 |
|
|
599 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
755 |
|
|
675 |
|
|
718 |
|
|
657 |
|
Creston Mascota deposit at Pinos
Altos(viii) |
|
589 |
|
|
477 |
|
|
611 |
|
|
534 |
|
La India mine(iv) |
|
541 |
|
|
- |
|
|
532 |
|
|
- |
Weighted average total cash costs per
ounce of gold produced |
$ |
735 |
|
$ |
739 |
|
$ |
721 |
|
$ |
806 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced - By-product basis (US$)(vi): |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
590 |
|
$ |
653 |
|
$ |
668 |
|
$ |
767 |
|
Lapa mine |
|
607 |
|
|
626 |
|
|
667 |
|
|
677 |
|
Goldex mine(ii) |
|
583 |
|
|
894 |
|
|
638 |
|
|
894 |
|
Meadowbank mine |
|
757 |
|
|
629 |
|
|
599 |
|
|
723 |
|
Canadian Malartic
mine(iii) |
|
684 |
|
|
- |
|
|
701 |
|
|
- |
|
Kittila mine(vii) |
|
809 |
|
|
679 |
|
|
845 |
|
|
598 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
597 |
|
|
443 |
|
|
533 |
|
|
372 |
|
Creston Mascota deposit at Pinos
Altos(viii) |
|
556 |
|
|
450 |
|
|
578 |
|
|
509 |
|
La India mine(iv) |
|
496 |
|
|
- |
|
|
487 |
|
|
- |
Weighted average total cash costs per
ounce of gold produced |
$ |
662 |
|
$ |
591 |
|
$ |
637 |
|
$ |
648 |
Notes: |
|
|
(i) |
Operating margin is calculated as revenues from mining
operations less production costs. |
|
|
(ii) |
The Goldex mine's M and E Zones achieved commercial production
on October 1, 2013. |
|
|
(iii) |
On June 16, 2014, the Company and Yamana Gold Inc
("Yamana") completed the joint acquisition of 100.0% of the issued
and outstanding common shares of Osisko Mining Corporation by way
of a court-approved plan of arrangement (the "Arrangement").
As a result of the Arrangement, Agnico Eagle and Yamana each
indirectly own 50.0% of Canadian Malartic General Partnership
("CMGP"), which operates the Canadian Malartic mine, and have
formed a joint committee to manage its operations. The
information set out in this table reflects the Company's 50.0%
interest in the Canadian Malartic mine. |
|
|
(iv) |
The La India mine achieved commercial production on
February 1, 2014. 3,492 ounces of payable gold production
were excluded from the calculation of total cash costs per ounce of
gold produced in the first quarter of 2014 as they were produced
prior to the achievement of commercial production. |
|
|
(v) |
Payable production 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 inventory at the end of the period. |
|
|
(vi) |
Total cash costs per ounce of gold produced is not a recognized
measure under IFRS and this data may not be comparable to data
presented by other gold producers. 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 interim unaudited
consolidated statements of income (loss) and comprehensive income
(loss) 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 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 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. |
|
|
(vii) |
Excludes the Kittila mine's results for the second quarter of
2013. Due to scheduled maintenance, the Kittila mine only operated
for 14 days during the second quarter of 2013. The
Kittila mine incurred $18,159 in production costs during the second
quarter of 2013, which were excluded from the calculation of total
cash costs per ounce of gold produced and minesite costs per
tonne. |
|
|
(viii) |
Excludes the Creston Mascota deposit at Pinos Altos' results
for the first quarter of 2013 due to the temporary suspension of
active leaching between October 1, 2012 and March 13, 2013 due to
an unexpected movement of leached ore at the Phase One leach
pad. The Creston Mascota deposit at Pinos Altos incurred
$3,117 in production costs during the first quarter of 2013, which
were excluded from total cash costs per ounce of gold
produced. |
AGNICO EAGLE MINES
LIMITED |
CONSOLIDATED BALANCE
SHEETS |
(thousands of United States
dollars, except share amounts, IFRS basis) |
(Unaudited) |
|
|
|
As at
December 31, |
|
As at
December 31, |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
177,537 |
|
$ |
139,101 |
|
Short-term investments |
|
|
4,621 |
|
|
2,217 |
|
Restricted cash |
|
|
33,122 |
|
|
28,723 |
|
Trade receivables |
|
|
59,716 |
|
|
67,300 |
|
Inventories |
|
|
446,660 |
|
|
345,083 |
|
Income taxes recoverable |
|
|
1,658 |
|
|
18,682 |
|
Available-for-sale
securities |
|
|
56,468 |
|
|
74,581 |
|
Fair value of derivative financial
instruments |
|
|
4,877 |
|
|
5,590 |
|
Other current assets |
|
|
123,401 |
|
|
116,992 |
Total current assets |
|
|
908,060 |
|
|
798,269 |
Non-current assets: |
|
|
|
|
|
|
|
Restricted cash |
|
|
20,899 |
|
|
- |
|
Goodwill |
|
|
582,461 |
|
|
39,017 |
|
Property, plant and mine
development |
|
|
5,301,496 |
|
|
3,694,461 |
|
Other assets |
|
|
27,622 |
|
|
48,334 |
Total assets |
|
$ |
6,840,538 |
|
$ |
4,580,081 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
206,180 |
|
$ |
173,374 |
|
Reclamation provision |
|
|
6,769 |
|
|
3,452 |
|
Interest payable |
|
|
13,816 |
|
|
13,803 |
|
Income taxes payable |
|
|
19,328 |
|
|
7,523 |
|
Finance lease obligations |
|
|
22,142 |
|
|
12,035 |
|
Current portion of long-term debt |
|
|
52,182 |
|
|
- |
|
Fair value of derivative financial
instruments |
|
|
8,249 |
|
|
323 |
Total current liabilities |
|
|
328,666 |
|
|
210,510 |
Non-current liabilities: |
|
|
|
|
|
|
|
Long-term debt |
|
|
1,322,461 |
|
|
987,356 |
|
Reclamation provision |
|
|
249,917 |
|
|
184,009 |
|
Deferred income and mining tax
liabilities |
|
|
832,201 |
|
|
453,411 |
|
Other liabilities |
|
|
38,803 |
|
|
27,389 |
Total liabilities |
|
|
2,772,048 |
|
|
1,862,675 |
EQUITY |
|
|
|
|
|
|
|
Common shares: |
|
|
|
|
|
|
|
|
Outstanding - 215,192,887 common shares issued,
less 956,653 shares held in trust |
|
|
4,599,788 |
|
|
3,294,007 |
|
Stock options |
|
|
200,830 |
|
|
184,078 |
|
Contributed surplus |
|
|
37,254 |
|
|
37,254 |
|
Deficit |
|
|
(779,382) |
|
|
(800,074) |
|
Accumulated other comprehensive
income |
|
|
10,000 |
|
|
2,141 |
Total equity |
|
|
4,068,490 |
|
|
2,717,406 |
Total liabilities and equity |
|
$ |
6,840,538 |
|
$ |
4,580,081 |
AGNICO EAGLE MINES
LIMITED |
CONSOLIDATED STATEMENTS OF
INCOME (LOSS) |
(thousands of United States
dollars, except per share amounts, IFRS basis) |
(Unaudited) |
|
|
Three
Months Ended
December 31, |
|
Year
Ended
December 31, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Revenues from mining
operations |
$ |
503,090 |
|
$ |
437,240 |
|
$ |
1,896,766 |
|
$ |
1,638,406 |
|
|
|
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES AND OTHER INCOME |
|
|
|
|
|
|
|
|
|
|
|
Production (i) |
|
287,317 |
|
|
230,495 |
|
|
1,004,559 |
|
|
866,082 |
Exploration and corporate development |
|
14,436 |
|
|
8,789 |
|
|
56,002 |
|
|
44,236 |
Amortization of property, plant and mine
development |
|
139,095 |
|
|
90,788 |
|
|
433,628 |
|
|
313,890 |
General and administrative |
|
25,995 |
|
|
25,941 |
|
|
118,771 |
|
|
113,809 |
Impairment loss on available-for-sale
securities |
|
12,882 |
|
|
3,869 |
|
|
15,763 |
|
|
32,476 |
Finance costs |
|
18,144 |
|
|
16,757 |
|
|
73,393 |
|
|
62,455 |
Loss on derivative financial instruments |
|
2,512 |
|
|
3,001 |
|
|
6,156 |
|
|
268 |
Gain on sale of available-for-sale securities |
|
(263) |
|
|
(74) |
|
|
(5,635) |
|
|
(74) |
Environmental remediation |
|
(949) |
|
|
3,698 |
|
|
8,214 |
|
|
3,698 |
Impairment loss |
|
- |
|
|
1,014,688 |
|
|
- |
|
|
1,014,688 |
Foreign currency translation loss
(gain) |
|
6,951 |
|
|
(1,392) |
|
|
3,781 |
|
|
1,769 |
Other (income) expenses |
|
(5,318) |
|
|
1,055 |
|
|
(7,004) |
|
|
3,396 |
Income (loss) before income and mining
taxes |
|
2,288 |
|
|
(960,375) |
|
|
189,138 |
|
|
(818,287) |
Income and mining taxes expense (recovery) |
|
23,571 |
|
|
(180,103) |
|
|
106,168 |
|
|
(131,582) |
Net income (loss) for the period |
$ |
(21,283) |
|
$ |
(780,272) |
|
$ |
82,970 |
|
$ |
(686,705) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic |
$ |
(0.10) |
|
$ |
(4.49) |
|
$ |
0.43 |
|
$ |
(3.97) |
Net income (loss) per share - diluted |
$ |
(0.12) |
|
$ |
(4.49) |
|
$ |
0.39 |
|
$ |
(3.97) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
212,401 |
|
|
173,616 |
|
|
195,223 |
|
|
172,893 |
Diluted |
|
213,273 |
|
|
173,616 |
|
|
196,202 |
|
|
172,893 |
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
December 31, |
|
Year
Ended
December 31, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
$ |
(21,283) |
|
$ |
(780,272) |
|
$ |
82,970 |
|
$ |
(686,705) |
Add (deduct) items not affecting
cash: |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of property, plant and mine
development |
|
139,095 |
|
|
90,788 |
|
|
433,628 |
|
|
313,890 |
|
Deferred income and mining taxes |
|
10,869 |
|
|
(212,417) |
|
|
37,058 |
|
|
(183,976) |
|
Gain on sale of available-for-sale
securities |
|
(263) |
|
|
(74) |
|
|
(5,635) |
|
|
(74) |
|
Stock-based compensation |
|
7,533 |
|
|
8,907 |
|
|
37,565 |
|
|
44,526 |
|
Impairment loss on available-for-sale
securities |
|
12,882 |
|
|
3,869 |
|
|
15,763 |
|
|
32,476 |
|
Impairment loss |
|
- |
|
|
1,014,688 |
|
|
- |
|
|
1,014,688 |
|
Foreign currency translation loss (gain) |
|
6,951 |
|
|
(1,392) |
|
|
3,781 |
|
|
1,769 |
|
Other |
|
(3,541) |
|
|
11,665 |
|
|
23,430 |
|
|
22,719 |
Adjustment for settlement of
reclamation provision |
|
(669) |
|
|
(694) |
|
|
(4,160) |
|
|
(9,081) |
Changes in non-cash working capital
balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Trade receivables |
|
2,012 |
|
|
(3,129) |
|
|
17,237 |
|
|
450 |
|
Income taxes |
|
5,783 |
|
|
17,060 |
|
|
30,771 |
|
|
717 |
|
Inventories |
|
23,705 |
|
|
21,844 |
|
|
(1,354) |
|
|
(33,838) |
|
Other current assets |
|
1,102 |
|
|
26,490 |
|
|
787 |
|
|
(23,447) |
|
Accounts payable and accrued liabilities |
|
(13,101) |
|
|
(50,340) |
|
|
(3,391) |
|
|
(12,695) |
|
Interest payable |
|
(7,119) |
|
|
(6,204) |
|
|
(126) |
|
|
(376) |
Cash provided by operating
activities |
|
163,956 |
|
|
140,789 |
|
|
668,324 |
|
|
481,043 |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine
development |
|
(133,353) |
|
|
(137,940) |
|
|
(475,412) |
|
|
(620,536) |
Acquisition of Cayden Resources Inc,
net of cash and cash equivalents acquired |
|
3,477 |
|
|
- |
|
|
3,477 |
|
|
- |
Acquisition of Osisko Mining
Corporation, net of cash and cash equivalents acquired |
|
- |
|
|
- |
|
|
(403,509) |
|
|
- |
Acquisition of Urastar Gold
Corporation, net of cash and cash equivalents acquired |
|
- |
|
|
- |
|
|
- |
|
|
(10,051) |
Net sales (purchases) of short-term
investments |
|
2,200 |
|
|
(50) |
|
|
(2,404) |
|
|
6,273 |
Net proceeds from sale of
available-for-sale securities and warrants |
|
4,057 |
|
|
171 |
|
|
44,692 |
|
|
171 |
Purchase of available-for-sale
securities and warrants |
|
- |
|
|
(4,776) |
|
|
(27,246) |
|
|
(59,804) |
Decrease (increase) in restricted
cash |
|
493 |
|
|
(1,333) |
|
|
8,783 |
|
|
(3,273) |
Cash used in investing activities |
|
(123,126) |
|
|
(143,928) |
|
|
(851,619) |
|
|
(687,220) |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
(14,606) |
|
|
(31,999) |
|
|
(54,065) |
|
|
(126,266) |
Repayment of finance lease
obligations |
|
(7,087) |
|
|
(1,961) |
|
|
(21,453) |
|
|
(10,605) |
Sale-leaseback financing |
|
- |
|
|
10,928 |
|
|
1,027 |
|
|
10,928 |
Proceeds from long-term debt |
|
50,000 |
|
|
50,000 |
|
|
1,010,000 |
|
|
290,000 |
Repayment of long-term debt |
|
(49,410) |
|
|
- |
|
|
(724,050) |
|
|
(120,000) |
Long-term debt financing |
|
- |
|
|
- |
|
|
(2,127) |
|
|
- |
Repurchase of common shares for
restricted share unit plan |
|
- |
|
|
- |
|
|
(7,518) |
|
|
(19,000) |
Proceeds on exercise of stock options
|
|
- |
|
|
- |
|
|
16,994 |
|
|
8,006 |
Common shares issued |
|
2,418 |
|
|
3,843 |
|
|
10,428 |
|
|
15,666 |
Cash (used in) provided by financing
activities |
|
(18,685) |
|
|
30,811 |
|
|
229,236 |
|
|
48,729 |
Effect of exchange rate changes on
cash and cash equivalents |
|
(3,431) |
|
|
(682) |
|
|
(7,505) |
|
|
(1,519) |
Net increase (decrease) in cash and
cash equivalents during the period |
|
18,714 |
|
|
26,990 |
|
|
38,436 |
|
|
(158,967) |
Cash and cash equivalents,
beginning of period |
|
158,823 |
|
|
112,111 |
|
|
139,101 |
|
|
298,068 |
Cash and cash equivalents, end of
period |
$ |
177,537 |
|
$ |
139,101 |
|
$ |
177,537 |
|
$ |
139,101 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
$ |
23,663 |
|
$ |
22,261 |
|
$ |
67,632 |
|
$ |
58,152 |
|
|
|
|
|
|
|
|
|
|
|
|
Income and mining taxes
paid |
$ |
13,070 |
|
$ |
16,495 |
|
$ |
51,302 |
|
$ |
56,478 |
AGNICO EAGLE MINES
LIMITED |
RECONCILIATION OF NON-GAAP
FINANCIAL PERFORMANCE MEASURES |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production Costs by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
(thousands of United States
dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Production costs per the consolidated
statements of income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
and comprehensive income (loss) |
|
$ |
287,317 |
|
$ |
230,495 |
|
$ |
1,004,559 |
|
$ |
866,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
|
47,629 |
|
|
53,061 |
|
|
188,736 |
|
|
228,640 |
Lapa mine |
|
|
17,463 |
|
|
17,368 |
|
|
61,056 |
|
|
69,371 |
Goldex mine(i) |
|
|
17,350 |
|
|
15,339 |
|
|
64,836 |
|
|
15,339 |
Meadowbank mine |
|
|
67,099 |
|
|
82,528 |
|
|
270,824 |
|
|
318,414 |
Canadian Malartic mine
(ii) |
|
|
47,701 |
|
|
- |
|
|
113,916 |
|
|
- |
Kittila mine (iii) |
|
|
36,546 |
|
|
27,179 |
|
|
116,893 |
|
|
97,934 |
Pinos Altos mine |
|
|
32,690 |
|
|
30,042 |
|
|
123,342 |
|
|
116,959 |
Creston Mascota deposit at Pinos
Altos(iv) |
|
|
7,729 |
|
|
4,979 |
|
|
28,007 |
|
|
19,425 |
La India mine(v) |
|
|
13,110 |
|
|
- |
|
|
36,949 |
|
|
- |
Total |
|
$ |
287,317 |
|
$ |
230,495 |
|
$ |
1,004,559 |
|
$ |
866,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold Produced
(vi) by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine -
Total Cash Costs per Ounce of Gold Produced
(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Year
Ended |
|
Year
Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,629 |
|
$ |
53,061 |
|
$ |
188,736 |
|
$ |
228,640 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
5,633 |
|
|
8,369 |
|
|
27,070 |
|
|
31,855 |
Cash operating costs (co-product
basis) |
|
$ |
53,262 |
|
$ |
61,430 |
|
$ |
215,806 |
|
$ |
260,495 |
|
By-product metal revenues |
|
|
(18,293) |
|
|
(27,903) |
|
|
(79,015) |
|
|
(121,035) |
Cash operating costs (by-product
basis) |
|
$ |
34,969 |
|
$ |
33,527 |
|
$ |
136,791 |
|
$ |
139,460 |
Gold production (ounces) |
|
|
59,316 |
|
|
51,336 |
|
|
204,652 |
|
|
181,781 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
898 |
|
$ |
1,197 |
|
$ |
1,055 |
|
$ |
1,433 |
|
By-product basis |
|
$ |
590 |
|
$ |
653 |
|
$ |
668 |
|
$ |
767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa Mine - Total Cash Costs per
Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,463 |
|
$ |
17,368 |
|
$ |
61,056 |
|
$ |
69,371 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(1,858) |
|
|
(897) |
|
|
750 |
|
|
(1,105) |
Cash operating costs (co-product
basis) |
|
$ |
15,605 |
|
$ |
16,471 |
|
$ |
61,806 |
|
$ |
68,266 |
|
By-product metal revenues |
|
|
(55) |
|
|
(3) |
|
|
(61) |
|
|
(22) |
Cash operating costs (by-product
basis) |
|
$ |
15,550 |
|
$ |
16,468 |
|
$ |
61,745 |
|
$ |
68,244 |
Gold production (ounces) |
|
|
25,611 |
|
|
26,323 |
|
|
92,622 |
|
|
100,730 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
609 |
|
$ |
626 |
|
$ |
667 |
|
$ |
678 |
|
By-product basis |
|
$ |
607 |
|
$ |
626 |
|
$ |
667 |
|
$ |
677 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Total Cash Costs per
Ounce of Gold Produced (i)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,350 |
|
$ |
15,339 |
|
$ |
64,836 |
|
$ |
15,339 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(161) |
|
|
1,924 |
|
|
(720) |
|
|
1,924 |
Cash operating costs (co-product
basis) |
|
$ |
17,189 |
|
$ |
17,263 |
|
$ |
64,116 |
|
$ |
17,263 |
|
By-product metal revenues |
|
|
(4) |
|
|
(3) |
|
|
(20) |
|
|
(3) |
Cash operating costs (by-product
basis) |
|
$ |
17,185 |
|
$ |
17,260 |
|
$ |
64,096 |
|
$ |
17,260 |
Gold production (ounces) |
|
|
29,463 |
|
|
19,305 |
|
|
100,433 |
|
|
19,305 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
583 |
|
$ |
894 |
|
|
$ 638 |
|
$ |
894 |
|
By-product basis |
|
$ |
583 |
|
$ |
894 |
|
$ |
638 |
|
$ |
894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Mine - Total Cash Costs
per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
67,099 |
|
$ |
82,528 |
|
$ |
270,824 |
|
$ |
318,414 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(656) |
|
|
(4,332) |
|
|
2,688 |
|
|
(4,601) |
Cash operating costs (co-product
basis) |
|
$ |
66,443 |
|
$ |
78,196 |
|
$ |
273,512 |
|
$ |
313,813 |
|
By-product metal revenues |
|
|
(805) |
|
|
(592) |
|
|
(2,420) |
|
|
(2,343) |
Cash operating costs (by-product
basis) |
|
$ |
65,638 |
|
$ |
77,604 |
|
$ |
271,092 |
|
$ |
311,470 |
Gold production (ounces) |
|
|
86,716 |
|
|
123,432 |
|
|
452,877 |
|
|
430,613 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
766 |
|
$ |
634 |
|
$ |
604 |
|
$ |
729 |
|
By-product basis |
|
$ |
757 |
|
$ |
629 |
|
$ |
599 |
|
$ |
723 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine - Total Cash
Costs per Ounce of Gold Produced (ii)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,701 |
|
$ |
- |
|
$ |
113,916 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other adjustments(vii)
(viii) |
|
|
(1,100) |
|
|
- |
|
|
(10,862) |
|
|
- |
Cash operating costs (co-product
basis) |
|
$ |
46,601 |
|
$ |
- |
|
$ |
103,054 |
|
$ |
- |
|
By-product metal revenues |
|
|
(1,230) |
|
|
- |
|
|
(2,771) |
|
|
|
Cash operating costs (by-product
basis) |
|
$ |
45,371 |
|
$ |
- |
|
$ |
100,283 |
|
$ |
- |
Gold production (ounces) |
|
|
66,369 |
|
|
- |
|
|
143,008 |
|
|
|
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
702 |
|
$ |
- |
|
$ |
721 |
|
$ |
- |
|
By-product basis |
|
$ |
684 |
|
$ |
- |
|
$ |
701 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine - Total Cash Costs per
Ounce of Gold Produced (iii)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
36,546 |
|
$ |
27,179 |
|
$ |
116,893 |
|
$ |
97,934 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(1,625) |
|
|
1,240 |
|
|
3,051 |
|
|
(13,442) |
Cash operating costs (co-product
basis) |
|
$ |
34,921 |
|
$ |
28,419 |
|
$ |
119,944 |
|
$ |
84,492 |
|
By-product metal revenues |
|
|
(37) |
|
|
(85) |
|
|
(124) |
|
|
(125) |
Cash operating costs (by-product
basis) |
|
$ |
34,884 |
|
$ |
28,334 |
|
$ |
119,820 |
|
$ |
84,367 |
Gold production (ounces) |
|
|
43,131 |
|
|
41,710 |
|
|
141,742 |
|
|
141,031 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
810 |
|
$ |
681 |
|
$ |
846 |
|
$ |
599 |
|
By-product basis |
|
$ |
809 |
|
$ |
679 |
|
$ |
845 |
|
$ |
598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine - Total Cash Costs
per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
32,690 |
|
$ |
30,042 |
|
$ |
123,342 |
|
$ |
116,959 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(1,976) |
|
|
1,354 |
|
|
(581) |
|
|
2,473 |
Cash operating costs (co-product
basis) |
|
$ |
30,714 |
|
$ |
31,396 |
|
$ |
122,761 |
|
$ |
119,432 |
|
By-product metal revenues |
|
|
(6,414) |
|
|
(10,819) |
|
|
(31,643) |
|
|
(51,773) |
Cash operating costs (by-product
basis) |
|
$ |
24,300 |
|
$ |
20,577 |
|
$ |
91,118 |
|
$ |
67,659 |
Gold production (ounces) |
|
|
40,670 |
|
|
46,490 |
|
|
171,019 |
|
|
181,773 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
755 |
|
$ |
675 |
|
$ |
718 |
|
$ |
657 |
|
By-product basis |
|
$ |
597 |
|
$ |
443 |
|
$ |
533 |
|
$ |
372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos
Altos - Total Cash Costs per Ounce of Gold Produced
(iv)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
7,729 |
|
$ |
4,979 |
|
$ |
28,007 |
|
$ |
19,425 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(84) |
|
|
104 |
|
|
1,232 |
|
|
(2,289) |
Cash operating costs (co-product
basis) |
|
$ |
7,645 |
|
$ |
5,083 |
|
$ |
29,239 |
|
$ |
17,136 |
|
By-product metal revenues |
|
|
(423) |
|
|
(280) |
|
|
(1,574) |
|
|
(795) |
Cash operating costs (by-product
basis) |
|
$ |
7,222 |
|
$ |
4,803 |
|
$ |
27,665 |
|
$ |
16,341 |
Gold production (ounces) |
|
|
12,989 |
|
|
10,666 |
|
|
47,842 |
|
|
32,120 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
589 |
|
$ |
477 |
|
$ |
611 |
|
$ |
534 |
|
By-product basis |
|
$ |
556 |
|
$ |
450 |
|
$ |
578 |
|
$ |
509 |
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine - Total Cash Costs
per Ounce of Gold Produced (v)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
13,110 |
|
$ |
- |
|
$ |
36,949 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
(514) |
|
|
- |
|
|
1,172 |
|
|
- |
Cash operating costs (co-product
basis) |
|
$ |
12,596 |
|
$ |
- |
|
$ |
38,121 |
|
$ |
- |
|
By-product metal revenues |
|
|
(1,055) |
|
|
- |
|
|
(3,230) |
|
|
|
Cash operating costs (by-product
basis) |
|
$ |
11,541 |
|
$ |
- |
|
$ |
34,891 |
|
$ |
- |
Gold production (ounces) |
|
|
23,274 |
|
|
- |
|
|
71,600 |
|
|
|
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
541 |
|
$ |
- |
|
$ |
532 |
|
$ |
- |
|
By-product basis |
|
$ |
496 |
|
$ |
- |
|
$ |
487 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Costs
to Minesite Costs per Tonne(ix) by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine - Minesite Costs per
Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December
31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,629 |
|
$ |
53,061 |
|
$ |
188,736 |
|
$ |
228,640 |
Inventory adjustment* |
|
|
(1,837) |
|
|
(487) |
|
|
(1,511) |
|
|
(6,259) |
Minesite operating costs |
|
$ |
45,792 |
|
$ |
52,574 |
|
$ |
187,225 |
|
$ |
222,381 |
Minesite operating costs (thousands of
C$) |
|
C$ |
52,073 |
|
C$ |
55,194 |
|
C$ |
206,858 |
|
C$ |
229,004 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
538 |
|
|
619 |
|
|
2,085 |
|
|
2,319 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
97 |
|
C$ |
89 |
|
C$ |
99 |
|
C$ |
99 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa Mine - Minesite Costs per
Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,463 |
|
$ |
17,368 |
|
$ |
61,056 |
|
$ |
69,371 |
Inventory adjustment* |
|
|
(1,999) |
|
|
(907) |
|
|
545 |
|
|
(1,216) |
Minesite operating costs |
|
$ |
15,464 |
|
$ |
16,461 |
|
$ |
61,601 |
|
$ |
68,155 |
Minesite operating costs (thousands of
C$) |
|
C$ |
17,636 |
|
C$ |
17,281 |
|
C$ |
68,128 |
|
C$ |
70,194 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
162 |
|
|
168 |
|
|
639 |
|
|
640 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
109 |
|
C$ |
103 |
|
C$ |
107 |
|
C$ |
110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Minesite Costs per
Tonne(i)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
17,350 |
|
$ |
15,339 |
|
$ |
64,836 |
|
$ |
15,339 |
Inventory adjustment* |
|
|
(290) |
|
|
1,895 |
|
|
(797) |
|
|
1,895 |
Minesite operating costs |
|
$ |
17,060 |
|
$ |
17,234 |
|
$ |
64,039 |
|
$ |
17,234 |
Minesite operating costs (thousands of
C$) |
|
C$ |
19,314 |
|
C$ |
18,093 |
|
C$ |
70,728 |
|
C$ |
18,093 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
575 |
|
|
492 |
|
|
2,117 |
|
|
492 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
34 |
|
C$ |
37 |
|
C$ |
33 |
|
C$ |
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Mine - Minesite Costs
per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December
31, 2014 |
|
December
31, 2013 |
|
December
31, 2014 |
|
December
31, 2013 |
Production costs |
|
$ |
67,099 |
|
$ |
82,528 |
|
$ |
270,824 |
|
$ |
318,414 |
Inventory adjustment* |
|
|
(1,177) |
|
|
(4,230) |
|
|
2,539 |
|
|
(5,222) |
Minesite operating costs |
|
$ |
65,922 |
|
$ |
78,298 |
|
$ |
273,363 |
|
$ |
313,192 |
Minesite operating costs (thousands of
C$) |
|
C$ |
73,612 |
|
C$ |
82,081 |
|
C$ |
300,635 |
|
C$ |
322,677 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
1,027 |
|
|
1,049 |
|
|
4,129 |
|
|
4,143 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
72 |
|
C$ |
78 |
|
C$ |
73 |
|
C$ |
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine - Minesite
Costs per Tonne (ii)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
47,701 |
|
$ |
- |
|
$ |
113,916 |
|
$ |
- |
Inventory
adjustment(viii)* |
|
|
(1,627) |
|
|
|
|
|
(11,656) |
|
|
|
Minesite operating costs |
|
$ |
46,074 |
|
$ |
- |
|
$ |
102,260 |
|
$ |
- |
Minesite operating costs (thousands of
C$) |
|
C$ |
52,327 |
|
C$ |
- |
|
C$ |
113,818 |
|
C$ |
- |
Tonnes of ore milled (thousands of
tonnes) |
|
|
2,449 |
|
|
- |
|
|
5,263 |
|
|
- |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
21 |
|
C$ |
- |
|
C$ |
22 |
|
C$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine - Minesite Costs per
Tonne(iii)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
36,546 |
|
$ |
27,179 |
|
$ |
116,893 |
|
$ |
97,934 |
Inventory and other
adjustments(xi) |
|
|
(1,753) |
|
|
1,095 |
|
|
2,560 |
|
|
(13,848) |
Minesite operating costs |
|
$ |
34,793 |
|
$ |
28,274 |
|
$ |
119,453 |
|
$ |
84,086 |
Minesite operating costs (thousands of
€) |
|
€ |
27,500 |
|
€ |
21,629 |
|
€ |
89,987 |
|
€ |
64,102 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
366 |
|
|
308 |
|
|
1,156 |
|
|
883 |
Minesite costs per tonne
(€)(ix) |
|
€ |
75 |
|
€ |
70 |
|
€ |
78 |
|
€ |
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine - Minesite Costs
per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
32,690 |
|
$ |
30,042 |
|
$ |
123,342 |
|
$ |
116,959 |
Inventory adjustment* |
|
|
(2,375) |
|
|
672 |
|
|
(2,376) |
|
|
(821) |
Minesite operating costs |
|
$ |
30,315 |
|
$ |
30,714 |
|
$ |
120,966 |
|
$ |
116,138 |
Tonnes of ore processed (thousands of
tonnes) |
|
|
634 |
|
|
673 |
|
|
2,520 |
|
|
2,726 |
Minesite costs per tonne
(US$)(ix) |
|
$ |
48 |
|
$ |
46 |
|
$ |
48 |
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos
Altos - Minesite Costs per Tonne(iv)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
7,729 |
|
$ |
4,979 |
|
$ |
28,007 |
|
$ |
19,425 |
Inventory and other
adjustments(xi) |
|
|
(163) |
|
|
(5) |
|
|
870 |
|
|
(2,564) |
Minesite operating costs |
|
$ |
7,566 |
|
$ |
4,974 |
|
$ |
28,877 |
|
$ |
16,861 |
Tonnes of ore processed (thousands of
tonnes) |
|
|
551 |
|
|
325 |
|
|
1,794 |
|
|
1,023 |
Minesite costs per tonne
(US$)(ix) |
|
$ |
14 |
|
$ |
15 |
|
$ |
16 |
|
$ |
16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine - Minesite Costs per
Tonne(v)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months Ended |
|
Year Ended |
|
Year Ended |
(thousands of United States
dollars, except as noted) |
|
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
Production costs |
|
$ |
13,110 |
|
$ |
- |
|
$ |
36,949 |
|
$ |
- |
Inventory adjustment* |
|
|
(652) |
|
|
- |
|
|
778 |
|
|
- |
Minesite operating costs |
|
$ |
12,458 |
|
$ |
- |
|
$ |
37,727 |
|
$ |
- |
Tonnes of ore processed (thousands of
tonnes) |
|
|
1,427 |
|
|
- |
|
|
4,442 |
|
|
- |
Minesite costs per tonne
(US$)(ix) |
|
$ |
9 |
|
$ |
- |
|
$ |
8 |
|
$ |
- |
Notes: |
|
(i) |
The Goldex mine's M and E Zones
achieved commercial production on October 1, 2013. |
|
|
(ii) |
On June 16, 2014, the Company and
Yamana Gold Inc ("Yamana") completed the joint acquisition of
100.0% of the issued and outstanding common shares of Osisko Mining
Corporation by way of a court-approved plan of arrangement (the
"Arrangement"). As a result of the Arrangement, Agnico Eagle
and Yamana each indirectly own 50.0% of Canadian Malartic General
Partnership ("CMGP"), which operates the Canadian Malartic mine,
and have formed a joint committee to manage its operations.
The information set out in this table reflects the Company's 50.0%
interest in the Canadian Malartic mine. |
|
|
(iii) |
Excludes the Kittila mine's results
for the second quarter of 2013. Due to an extended maintenance
shutdown, the Kittila mine only operated for 14 days during the
second quarter of 2013. The Kittila mine incurred $18,159 in
production costs during the second quarter of 2013, which were
removed from the calculation of total cash costs per ounce of gold
produced and minesite costs per tonne by means of the inventory and
other adjustments line in their respective reconciliation
tables. |
|
|
(iv) |
Excludes the Creston Mascota deposit
at Pinos Altos' results for the first quarter of 2013 due to the
temporary suspension of active leaching between October 1, 2012 and
March 13, 2013. The Creston Mascota deposit at Pinos Altos
incurred $3,117 in production costs during the first quarter of
2013, which were removed from the calculation of total cash costs
per ounce of gold produced and minesite costs per tonne by means of
the inventory and other adjustments line in their respective
reconciliation tables. |
|
|
(v) |
The La India mine achieved commercial
production on February 1, 2014. 3,492 ounces of payable gold
production were excluded from the calculation of total cash costs
per ounce of gold produced in the first quarter of 2014 as they
were produced prior to the achievement of commercial
production. |
|
|
(vi) |
Total cash costs per ounce of gold
produced is not a recognized measure under IFRS and this data may
not be comparable to data presented by other gold producers. 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 interim unaudited consolidated statement of income
(loss) 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 (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. |
|
|
(vii) |
Under the Company's revenue
recognition policy, revenue is recognized on concentrates when
legal title passes. 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, as well as the production
costs referenced in notes (iii) and (iv) above. |
|
|
(viii) |
For the second quarter of 2014 the
Canadian Malartic inventory adjustment includes a fair value
increment on finished goods inventory related to the purchase price
allocation as part of the acquisition of Osisko Mining
Corporation. |
|
|
(ix) |
Minesite costs per tonne is not a
recognized measure under IFRS and this data may not be comparable
to data presented by other gold producers. This measure is
calculated by adjusting production costs as shown in the interim
unaudited consolidated statement of income (loss) 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 impacted 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. |
|
|
* |
This inventory adjustment reflects
production costs associated with unsold concentrates. |
|
|
(xi) |
This inventory and other adjustment
reflects production costs associated with unsold concentrates, as
well as the production costs referenced in notes (iii) and (iv)
above. |
Reconciliation of Production Costs to All-in Sustaining Costs
per Ounce of Gold Produced
|
|
|
|
Year Ended |
(United States dollars per ounce of
gold produced, except where noted) |
|
|
|
31-Dec-14 |
|
|
|
|
|
Production costs per the consolidated
statements of income (loss) and comprehensive income (loss)
(thousands of United States dollars) |
|
|
|
$1,004,559 |
Adjusted gold production
(ounces)(i) |
|
|
|
1,425,796 |
Production costs per ounce of adjusted
gold production:(i) |
|
|
|
$705 |
Adjustments: |
|
|
|
|
|
Inventory and other
adjustments(ii) |
|
|
|
16 |
Total cash costs per ounce of gold
produced (co-product basis)(iii) |
|
|
|
$721 |
|
By-product metal revenues |
|
|
|
(84) |
Total cash costs per ounce of gold
produced (by-product basis)(iii) |
|
|
|
$637 |
Adjustments: |
|
|
|
|
|
Sustaining capital expenditures (including
capitalized exploration) |
|
|
|
230 |
|
General and administrative expenses (including
stock options) |
|
|
|
83 |
Non-cash reclamation
provision |
|
|
|
4 |
All-in sustaining costs per ounce of
gold produced (by-product basis) |
|
|
|
$954 |
By-product metal revenues |
|
|
|
84 |
All-in sustaining costs per ounce of
gold produced (co-product basis) |
|
|
|
$1,038 |
Notes: |
(i) |
The La India mine achieved commercial production on February 1,
2014. 3,492 ounces of payable gold production were excluded
from the calculation of total cash costs per ounce of gold produced
in the first quarter of 2014 as they were produced prior to the
achievement of commercial production. |
(ii) |
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. |
(iii) |
Total cash costs per ounce of gold produced is not a recognized
measure under IFRS and this data may not be comparable to data
presented by other gold producers. 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 interim unaudited
consolidated statements of income (loss) 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