Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise
noted)
TORONTO, Feb. 13, 2020 /PRNewswire/ - Agnico Eagle
Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") today reported quarterly net income of $331.7 million, or net income of
$1.39 per share, for the fourth
quarter of 2019. This result includes an impairment reversal (net
of tax) relating to the Meliadine mine of $223.4 million ($0.93 per share), non-cash foreign currency
translation gains on deferred tax liabilities and non-recurring tax
adjustments of $10.6 million
($0.05 per share), mark-to-market
gains and other adjustments of $7.2
million ($0.03 per share) and
derivative gains on financial instruments of $3.1 million ($0.01
per share). Excluding these items would result in adjusted net
income1 of $87.4 million
or $0.37 per share for the fourth
quarter of 2019. For the fourth quarter of 2018, the Company
reported a net loss of $393.7
million or a loss of $1.68 per
share.
Included in the fourth quarter of 2019 net income, and not
adjusted above, is a non-cash stock option expense of $3.2 million ($0.01
per share).
For the full year 2019, the Company reported net income of
$473.2 million, or $2.00 per share. This compares with the full year
2018, when the company reported a net loss of $326.7 million, or loss of $1.40 per share.
In the fourth quarter of 2019, cash provided by operating
activities was $257.5 million
($263.8 million before changes in
non-cash components of working capital), as compared with the
fourth quarter of 2018 when cash provided by operating
activities was $140.3 million
($150.4 million before changes in
non-cash components of working capital).
For the full year 2019, cash provided by operating activities
was a record $881.7 million
($867.3 million before changes in
non-cash components of working capital), as compared with the full
year 2018 when cash provided by operating activities was
$605.7 million ($645.5 million before changes in non-cash
components of working capital).
The increase in net income and cash provided by operating
activities during the fourth quarter of 2019 and for the full year
2019, compared to the prior year periods, was mainly due to higher
gold sales volumes and higher realized gold prices, partially
offset by higher costs relating to the slower than expected ramp up
at the Amaruq satellite deposit and the Meliadine mine. Higher gold
sales volumes were largely a result of the increased production due
to the completion of the Meliadine project in 2019.
"With two new mines coming into production in Nunavut, 2019 was a pivotal year for the
Company. We set new records for both annual gold production
and cash provided by operating activities. Despite setting
these production and cash flow records, the production ramp up in
Nunavut has been slower than
expected, which has resulted in higher than anticipated costs in
the fourth quarter of 2019 and slight revisions to our 2020
production guidance," said Sean
Boyd, Agnico Eagle's Chief Executive Officer. "In
2020, we have put plans in place to improve productivity and
optimize the operations as they continue to ramp up and we expect
quarterly production growth and lower costs as we move through the
year. We remain confident in our business with 18% production
growth forecast through 2022 and our confidence is demonstrated
with a further 14% increase in our quarterly dividend," added Mr.
Boyd.
__________________
|
1 Adjusted
net income is a non-GAAP measure. For a discussion regarding the
Company's use of non-GAAP measures, please see "Note Regarding
Certain Measures of Performance".
|
Fourth quarter of 2019 and full year 2019 highlights
include:
- Record quarterly and annual gold production – Payable
gold production2 in the fourth quarter of 2019 was
494,678 ounces (including pre-commercial production ounces of 3,137
(50% basis) at Canadian Malartic from the Barnat deposit) at
production costs per ounce of $763,
total cash costs per ounce3 of $745 and all-in sustaining costs per
ounce4 ("AISC") of $1,039.
Payable gold production for the full year 2019 was 1,782,147 ounces
(including pre-commercial production ounces of 47,281 at Meliadine,
35,281 at Amaruq and 3,137 at Canadian Malartic from the Barnat
deposit), at production costs per ounce of $735 and total cash costs per ounce of
$673, compared to the most recent
guidance of 1.77 to 1.78 million ounces of gold at total cash costs
per ounce of $620 to $670. AISC for the full year 2019 were
$938, compared to the most recent
guidance of $875 to $925 per ounce
- Gold production is forecast to increase by 18% from 2019 to
2022 – The gold production forecast for 2020 is now 1.875
million ounces, compared to the most recent guidance of 1.9 to 2.0
million ounces. The gold production guidance for 2020 was reduced
largely due to revisions to the mine plans at the Nunavut operations and LaRonde. The mid-point
of gold production guidance for 2021 is essentially unchanged at
2.05 million ounces and the mid-point of gold production guidance
for 2022 is 2.10 million ounces
- Unit costs expected to decline from 2020 to 2022 – In
2020, total cash costs per ounce are forecast to be between
$725 and $775 and AISC are forecast to be between
$975 and $1,025 per ounce. Costs in 2020 are forecast to
increase over 2019 largely due to the ongoing ramp up of the
Nunavut operations and a more
conservative mining plan at LaRonde. The Company expects production
to increase and costs to be reduced after the first quarter of the
year as plans are in place to resolve the key outstanding ramp up
issues in Nunavut and LaRonde
infrastructure upgrades are completed. Total cash costs per
ounce and AISC are expected to continue to decline from 2020
through 2022
- 2019 gold mineral reserves declined slightly while gold
grades increased 5%; measured and indicated mineral resources
increased by 4% and inferred mineral resources increased by 19%
– The increase in inferred mineral resources was largely due to
additions at East Gouldie and East
Malartic. The average gold mineral reserve grade in 2019
increased from 2.7 grams per tonne ("g/t") to 2.83 g/t, which is
the fourth consecutive year of improvement. Average mineral
resource grades for the year-ended 2019 were essentially unchanged
from the previous year
- Dividend increased by 14% – A quarterly dividend of
$0.20 per share has been declared.
The previous quarterly dividend was $0.175 per share
- Project pipeline shows potential to support future
production growth
-
- Meliadine Phase 2 expansion approved – The current
Meliadine mill has shown that it can operate well in excess of its
nameplate 3,750 tonnes per day ("tpd") capacity. As a result, the
Company has decided to accelerate the Phase 2 expansion to utilize
this extra mill capacity. The initial source of open pit ore will
be from two pits developed on the Tiriganiaq deposit, which contain
probable mineral reserves of 590,412 ounces of gold (3.8 million
tonnes grading 4.89 g/t gold). Approximately 16,500 pre-commercial
gold ounces are expected to be produced from Tiriganiaq pits in
2020
- Amaruq underground project continues to advance – Amaruq
mineral reserves increased 15% year-over-year to 3.3 million ounces
of gold (26 million tonnes grading 3.96 g/t gold), with the
addition of initial underground probable mineral reserves in the
Whale Tail deposit of 577,000 ounces of gold (3.3 million tonnes
grading 5.43 g/t gold). The Company believes that there is good
potential for the Amaruq underground to contribute to its
production profile starting in 2022
- Underground mineral resources expanded at Canadian
Malartic – An initial inferred mineral resource of 1.4 million
ounces of gold (12.8 million tonnes grading 3.34 g/t gold) (50%
basis), has been declared at the East Gouldie Zone, which was
discovered in late 2018. Drilling highlights from 2019 include 8.6
g/t gold over 25.8 metres at 1,071 metres depth. At East Malartic, inferred mineral resources of
1.2 million ounces of gold (50% basis) were added with the
inclusion of deeper portions of the deposit between 1,000 metres to
1,800 metres depth, increasing total inferred mineral resources at
East Malartic to 2.6 million
ounces of gold (39.4 million tonnes grading 2.05 g/t gold)
(50%)
- Drilling at Santa Gertrudis
extends high-grade mineral resources – The Amelia deposit
continues to grow with an updated inferred mineral resource of
70,000 ounces of gold (1.6 million tonnes grading 1.38 g/t gold) at
open pit depth, as well as an initial underground inferred mineral
resource of 451,000 ounces of gold (3.1 million tonnes grading 4.58
g/t gold) in higher-grade sulphide material
__________________
|
2 Payable
production of a mineral means the quantity of a mineral produced
during a period contained in products that have been or will be
sold by the Company whether such products are shipped during the
period or held as inventory at the end of the period.
|
3 Total
cash costs per ounce is a non-GAAP measure and, unless otherwise
specified, is reported on a by-product basis. For a reconciliation
to production costs and for total cash costs on a co-product basis,
see "Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance".
|
4
All-in-sustaining costs per ounce is a non-GAAP measure and, unless
otherwise specified, is reported on a by-product basis. For a
reconciliation to production costs and for all-in sustaining costs
on a co-product basis, see "Reconciliation of Non-GAAP Financial
Performance Measures" below. See also "Note Regarding Certain
Measures of Performance".
|
Fourth Quarter and Full Year 2019 Financial and Production
Highlights
In the fourth quarter of 2019, strong operational performance
continued at the Company's mines, which led to record quarterly
payable gold production of 494,678 ounces, which includes the
pre-commercial production from the Barnat deposit at Canadian
Malartic. Excluding the pre-commercial production ounces at Barnat,
payable gold production was 491,541 ounces, compared to 410,712
ounces in the fourth quarter of 2018.
For the full year 2019, payable gold production was a record
1,782,147 ounces, which includes the pre-commercial production
ounces at the Meliadine mine, the Amaruq satellite deposit and the
Barnat deposit. Excluding the pre-commercial production ounces,
payable gold production was 1,696,443 ounces, compared to 1,626,669
ounces in 2018.
The higher level of gold production in the fourth quarter of
2019 and the full year 2019, when compared with the prior-year
periods, was primarily due to the start of production at the
Meliadine mine in 2019. A detailed description of the production at
each mine is set out below.
Production costs per ounce in the fourth quarter of 2019 were
$763, compared to $693 in the prior-year period. Total cash costs
per ounce in the fourth quarter of 2019 were $745, compared to $608 in the prior-year period.
Production costs per ounce for the full year 2019 were
$735, compared to $713 in the prior-year period. Total cash costs
per ounce for the full year 2019 were $673, compared to $637 in the prior-year period.
Production costs per ounce and total cash costs per ounce in the
fourth quarter of 2019 and the full year 2019 increased when
compared to the prior-year periods primarily due to higher costs
relating to the slower than expected ramp up at the Amaruq
satellite deposit and the Meliadine mine, partially offset by
higher gold production.
AISC in the fourth quarter of 2019 was $1,039 per ounce, compared to $852 in the prior-year period. AISC for the full
year 2019 was $938 per ounce,
compared to $877 in the prior-year
period.
AISC in the fourth quarter of 2019 and for the full year 2019
increased when compared to the prior-year periods primarily due to
higher total cash costs per ounce and higher sustaining capital
costs, partially offset by expected higher gold production. A
detailed description of the cost performance of each mine is set
out below.
In the fourth quarter of 2019, an impairment reversal, net of
tax, of $223.4 million relating to
the Meliadine mine was recorded in connection with an impairment
review performed under International Financial Reporting Standards.
The impairment reversal was recognized as a result of various
factors including the decrease in project risk.
Cash Position Continues to Grow, Resulting in Increasing
Financial Flexibility
Cash and cash equivalents and short-term investments increased
to $327.9 million at December 31, 2019, from the September 30,
2019 balance of $265.2 million.
The outstanding balance on the Company's credit facility
remained nil at December 31, 2019.
This results in available credit lines of approximately
$1.2 billion, not including the
uncommitted $300 million accordion
feature.
With the upcoming debt maturity of $360
million of notes due in April
2020, the Company is evaluating various options to maintain
financial flexibility. The Company remains committed to maintaining
an investment grade balance sheet and expects to reduce gross debt
in 2020 while maintaining strong liquidity.
Approximately 16% of the Company's 2020
Canadian dollar exposure is hedged at an average floor price
of approximately 1.30 C$/US$.
Approximately 8% of the Company's 2020 Mexican peso exposure is
hedged at an average floor price of approximately 19.40 MXP/US$. The Company's 2020 Euro exposure is currently unhedged. The
Company's full year 2020 cost guidance is based on assumed exchange
rates of 1.30 C$/US$, 18.00 MXP/US$ and 1.15
US$/EUR. The Company anticipates adding to its operating
currency hedges, subject to market conditions.
Approximately 77% of the Company's diesel exposure relating to
its Nunavut operations for 2020 is
hedged at prices better than the 2020 cost guidance assumption of
C$0.85 per litre (excluding
transportation costs). The Company anticipates adding to its diesel
hedges, subject to market conditions.
Capital Expenditures
Total capital expenditures (including sustaining capital) for
the full year 2019 were $824.8
million, compared to guidance of $790
million. The increase in capital expenditures compared to
the previous guidance primarily related to additional spending at
Kittila and the Amaruq satellite deposit. Approximately
$16 million of additional capital
expenditures at Kittila was due to the acceleration of costs in
connection with tailings storage and the expansion project. At
Amaruq, additional capital costs totaling $13 million were incurred in the fourth quarter
of 2019 primarily related to additional mobile equipment and
increased stripping costs.
The following table sets out capital expenditures (including
sustaining capital) in the fourth quarter and the full year
2019.
Capital
Expenditures
|
|
|
|
|
(In thousands of
US dollars)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2019
|
|
December 31,
2019
|
Sustaining
Capital
|
|
|
|
|
LaRonde
mine
|
|
$
|
18,794
|
|
|
$
|
72,165
|
|
LaRonde Zone
5
|
|
2,140
|
|
|
6,207
|
|
Canadian Malartic
mine
|
|
13,960
|
|
|
45,880
|
|
Meadowbank
Complex
|
|
18,801
|
|
|
18,801
|
|
Meliadine
mine
|
|
12,554
|
|
|
30,937
|
|
Kittila
mine
|
|
17,490
|
|
|
78,182
|
|
Goldex
mine
|
|
7,795
|
|
|
22,711
|
|
Pinos Altos
mine
|
|
9,511
|
|
|
28,098
|
|
Creston Mascota
mine
|
|
—
|
|
|
—
|
|
La India
mine
|
|
3,479
|
|
|
10,851
|
|
Total Sustaining
Capital
|
|
$
|
104,524
|
|
|
$
|
313,832
|
|
|
|
|
|
|
Development
Capital
|
|
|
|
|
LaRonde
mine
|
|
$
|
10,481
|
|
|
$
|
20,011
|
|
LaRonde Zone
5
|
|
—
|
|
|
2,770
|
|
Canadian Malartic
mine
|
|
9,554
|
|
|
37,171
|
|
Meadowbank
Complex
|
|
17,556
|
|
|
174,866
|
|
Amaruq underground
project
|
|
8,300
|
|
|
38,400
|
|
Meliadine
mine
|
|
6,015
|
|
|
91,554
|
|
Kittila
mine
|
|
37,023
|
|
|
101,597
|
|
Goldex
mine
|
|
4,056
|
|
|
21,223
|
|
Pinos Altos
mine
|
|
2,645
|
|
|
13,861
|
|
Creston Mascota
mine
|
|
—
|
|
|
—
|
|
La India
mine
|
|
931
|
|
|
4,516
|
|
Other
|
|
2,984
|
|
|
5,027
|
|
Total Development
Capital
|
|
$
|
99,545
|
|
|
$
|
510,996
|
|
Total Capital
Expenditures
|
|
$
|
204,069
|
|
|
$
|
824,828
|
|
Senior Management Changes
As we continue to position Agnico Eagle for the future, some
changes to our senior management team were made at the end of 2019.
These changes are part of our leadership development and succession
plan, which is designed to ensure we have the right leaders in the
right roles to build on our long-term success.
Don Allan retired as Senior
Vice-President, Corporate Development and his responsibilities were
transferred to Jean Robitaille, who
was appointed Senior Vice-President – Corporate Development,
Business Strategy and Technical Services. Jean's mandate will be to
increase alignment between these functions as we continue to
advance and build our pipeline of sustainable, high quality
projects.
Transitioning to her retirement at the end of 2020, Louise Grondin's responsibilities for
Environment and Sustainable Development were transferred to
Carol Plummer, who was appointed
Senior Vice-President, Sustainability. For 2020, Louise will remain
as Senior Vice-President, People and Culture.
Quarterly Dividend Increased by 14%
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.20 per common share,
payable on March 16, 2020 to
shareholders of record as of February 28,
2020. Agnico Eagle has now declared a cash dividend every
year since 1983.
Expected Dividend Record and Payment Dates for 2020
Record
Date
|
Payment
Date
|
February
28*
|
March 16*
|
June 1
|
June 15
|
August 31
|
September
15
|
November
25
|
December
15
|
Dividend Reinvestment Plan
Please see the following link for information on the Company's
dividend reinvestment plan: Dividend Reinvestment Plan
Fourth Quarter 2019 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Friday, February 14, 2020 at
11:00 AM (E.S.T.) to discuss
the Company's fourth quarter and full year financial and operating
results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
1-647-427-7450 or toll-free 1-888-231-8191. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access
code 7265864. The conference call replay will expire on
Friday, March 14, 2020.
The webcast along with presentation slides will be archived for
180 days on the Company's website.
New Three-Year Guidance – Forecast Shows Continued Production
Growth
The Company is announcing its detailed production and cost
guidance for 2020, and mine by mine production forecasts for 2020
through 2022. Gold production in 2020 is now forecast to be 1.875
million ounces. This compares to previous guidance of 1.9 to 2.0
million ounces. Gold production in 2021 is now forecast to be
between 2.01 million and 2.09 million ounces (mid-point of 2.05
million ounces), which is the same as previous guidance. Gold
production in 2022 is forecast to be between 2.07 million and 2.14
million ounces (mid-point of 2.1 million ounces).
The new guidance in 2020 largely reflects a slower than
previously expected ramp up of production at the new Nunavut operations and a more conservative
mining plan in the West mine area at LaRonde. Further details
on this guidance are provided below.
In 2020, gold production is expected to ramp up sequentially on
a quarter-over-quarter basis. The first quarter of 2020 is expected
to be the weakest quarter for gold production and the Company
expects production over the remaining quarters to average
approximately 470,000 to 490,000 ounces of gold per quarter.
Total cash costs per ounce in 2020 are expected to be between
$725 and $775 using a C$/US$ foreign exchange rate
assumption of 1.30. The higher costs in 2020, when compared to
2019, are largely a result of higher costs in Nunavut due to the slower than expected
production ramp up, and general industry cost pressures (3% to 5%
increase primarily on consumables and labour). The Company remains
focused on reducing costs through productivity improvements
(primarily in Nunavut) and
innovation initiatives at all of its operations. As a result, in
2021, using a C$/US$ foreign exchange rate assumption of 1.30,
total cash costs per ounce are forecast to decline to between
$675 and $725. Costs are then
forecast to then remain stable through 2022.
AISC for 2020 are expected to be between $975 and $1,025 per
ounce. The higher AISC in 2020, when compared to 2019, is largely
due to higher total cash costs. In 2021, using a C$/US$ foreign
exchange rate assumption of 1.30, AISC are forecast to decline to
between $900 and $950 per ounce, largely due to higher gold
production, and lower total cash costs. The Company expects
AISC to be steady to declining in 2022 and beyond (based on the
same foreign exchange rate assumption).
With the start-up of operations at Meliadine and Amaruq in 2019,
the Company now has four cornerstone production assets (the LaRonde
Complex, Canadian Malartic, Meliadine and the Meadowbank Complex)
each with annual production rates of approximately 250,000 to
400,000 ounces of gold. In addition, with the expected completion
of the shaft and mill expansion at Kittila in late 2021, annual
production in 2022 and beyond is expected to increase by
approximately 25-30% over current levels, to more than 250,000
ounces at Kittila as new sources of ore are developed
underground.
With gold production expected to increase, and total cash costs
forecast to decline on a quarter-over-quarter basis in 2020, the
Company expects to see a significant improvement in cash flow
generation through year-end.
Three-Year Guidance Shows 18% Growth Over 2019 Production
Level; Costs Forecast to Decline as Gold Production Increases
Through 2022
Mine by mine production and cost guidance for 2020, and mine by
mine production forecasts for 2021 and 2022 are set out below.
Opportunities to further optimize and improve production and unit
cost forecasts from 2020 through 2022 are being evaluated.
Estimated Payable
Gold Production
|
|
2019*
|
|
2020*
|
|
2021
|
|
2022
|
|
Actual
|
|
Forecast
|
|
Forecast
|
|
Forecast
|
|
|
|
|
|
Range
|
|
Mid-Point
|
|
Range
|
|
Mid-Point
|
Northern
Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
402,984
|
|
342,500
|
|
342,500
|
357,500
|
|
350,000
|
|
352,500
|
367,500
|
|
360,000
|
Canadian Malartic
(50%)
|
334,596
|
|
330,000
|
|
345,000
|
355,000
|
|
350,000
|
|
325,000
|
335,000
|
|
330,000
|
Goldex
mine
|
140,884
|
|
137,500
|
|
130,000
|
140,000
|
|
135,000
|
|
127,500
|
132,500
|
|
130,000
|
Kittila
mine
|
186,101
|
|
195,000
|
|
230,000
|
240,000
|
|
235,000
|
|
257,500
|
267,500
|
|
262,500
|
Meadowbank
Complex
|
193,489
|
|
245,000
|
|
367,500
|
377,500
|
|
372,500
|
|
412,500
|
417,500
|
|
415,000
|
Meliadine
mine
|
238,394
|
|
350,000
|
|
380,000
|
390,000
|
|
385,000
|
|
392,500
|
402,500
|
|
397,500
|
|
1,496,448
|
|
1,600,000
|
|
1,795,000
|
1,860,000
|
|
1,827,500
|
|
1,867,500
|
1,922,500
|
|
1,895,000
|
Southern
Business
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
155,124
|
|
150,000
|
|
125,000
|
135,000
|
|
130,000
|
|
132,500
|
142,500
|
|
137,500
|
Creston Mascota
mine
|
48,380
|
|
35,000
|
|
—
|
—
|
|
—
|
|
—
|
—
|
|
—
|
La India
mine
|
82,190
|
|
90,000
|
|
85,000
|
95,000
|
|
90,000
|
|
65,000
|
70,000
|
|
67,500
|
|
285,694
|
|
275,000
|
|
210,000
|
230,000
|
|
220,000
|
|
197,500
|
212,500
|
|
205,000
|
Total Gold
Production
|
1,782,142
|
|
1,875,000
|
|
2,005,000
|
2,090,000
|
|
2,047,500
|
|
2,065,000
|
2,135,000
|
|
2,100,000
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes
pre-commercial gold production of 35,281 ounces at Amaruq and
47,281 ounces at Meliadine
|
** Includes estimated
pre-commercial gold production of 15,500 ounces at Canadian
Malartic relating to the Barnat pit and 16,500 ounces at Meliadine
relating to phase 2 expansion
|
In 2021, the estimated mid-point production level is currently
forecast to be approximately 2.05 million ounces of gold, which is
essentially unchanged from the February
2019 forecast. In 2022, the estimated mid-point production
level is currently forecast to be approximately 2.10 million ounces
of gold.
Total cash costs
per ounce on a by-product basis of gold produced ($
per ounce):
|
|
|
|
|
|
2019
|
|
2020
|
|
|
|
|
|
Actual
|
|
Forecast
(mid-point)
|
Northern
Business
|
|
|
|
LaRonde
Complex
|
$
|
502
|
|
$
|
620
|
Canadian Malartic
mine (50%)
|
606
|
|
624
|
Goldex
mine
|
584
|
|
650
|
Kittila
mine
|
736
|
|
745
|
Meadowbank
Complex
|
1,152
|
|
1,282
|
Meliadine
mine
|
748
|
|
670
|
|
$
|
672
|
|
$
|
753
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
639
|
|
707
|
Creston Mascota
mine
|
554
|
|
452
|
La India
mine
|
823
|
|
803
|
|
$
|
678
|
|
$
|
706
|
Total
|
$
|
673
|
|
$
|
746
|
Currency and commodity price assumptions used for 2020 cost
estimates and sensitivities are set out in the table below:
2020 commodity and
currency
price
assumptions
|
Approximate impact
on total cash
costs per ounce
basis
|
Silver
($/oz)
|
17.50
|
$1 / oz change in
silver price
|
$2
|
Copper
($/lb)
|
2.75
|
10% change in copper
price
|
$1
|
Zinc
($/lb)
|
1.10
|
10% change in zinc
price
|
$1
|
Diesel
(C$/ltr)
|
0.85
|
10% change in diesel
price
|
$3
|
C$/US$
|
1.30
|
1.0% change in
C$/US$
|
$6
|
US$/EUR
|
1.15
|
1.0% change in
US$/EUR
|
$1
|
MXP/US$
|
18.00
|
10% change in
MXP/US$
|
$4
|
Depreciation Guidance
Agnico Eagle expects its 2020 depreciation and amortization
expense to be between $625 and
$675 million.
General & Administrative Cost Guidance
Agnico Eagle expects 2020 general and administration expenses to
be between $85 and $95 million, excluding share-based compensation.
In 2020, share based compensation expense is expected to be between
$25 and $35
million (including non-cash stock option expense of between
$10 and $15
million).
Please see the supplemental financial data section of the
Financial and Operating Database on the Company's website for
additional historical financial data.
Tax Guidance
For 2020, the Company expects its effective tax rates to be:
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
The Company's overall tax rate is expected to be between 40% and
45% for the full year 2020.
Updated Three Year Guidance Plan
Since the prior three-year gold production guidance of
February 14, 2019 ("Previous
Guidance"), there have been several operating developments
resulting in changes to the overall three-year production profile.
Descriptions of these changes are set out below.
Northern Business
ABITIBI REGION, QUEBEC
LaRonde Complex
Forecast
|
2019
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
380,000
|
390,000
|
385,000
|
n.a.
|
Current Guidance
(oz)
|
402,984
(actual)
|
342,500
|
350,000
|
360,000
|
LaRonde
Complex
Forecast 2020
|
Ore Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold Mill
Recovery
(%)
|
Silver
(g/t)
|
Silver Mill
Recovery
(%)
|
Zinc (%)
|
Zinc Mill
Recovery
(%)
|
Copper
(%)
|
Copper Mill
Recovery
(%)
|
Minesite
Costs per
Tonne
(C$)5
|
|
2,866
|
3.93
|
94.6%
|
9.7
|
76.6%
|
0.29%
|
69.5%
|
0.15%
|
80.6%
|
$108
|
In 2019, the Company was granted a revision to the Certificate
of Authorization at the LaRonde Complex, which allowed for the
processing of ore from LaRonde Zone
5 ("LZ5") through the LaRonde mill circuit. As a result, the
Company will report the operational parameters from both LZ5 and
LaRonde on a combined basis starting in 2020.
At the LaRonde Complex, the lower production guidance for 2020
and 2021 (as compared to Previous Guidance) is related to lowered
anticipated production rates at the LaRonde mine, partially offset
by increased mining rates at LZ5, which is lower grade.
__________________
|
5 Minesite
costs per tonne is a non-GAAP measure. For a reconciliation of this
measure to production costs as reported in the financial
statements, see "Reconciliation of Non-GAAP Financial Performance
Measures" below. See also "Note Regarding Certain Measures of
Performance" below.
|
The lower gold production at the LaRonde mine in 2020 is
primarily due to strengthening ground support and more conservative
seismic protocols in the West mine area. This impact (lower
production and higher total cash costs per ounce) will be
concentrated in the first quarter of the year as ground support
infrastructure work is completed. Changes in the mining
sequence related to the merging of the mining pyramids in the East
and West mine areas is also expected to impact production in 2020
and into 2021. Production is expected to increase (and costs
decrease) in 2022 and beyond.
Canadian Malartic
Forecast
|
2019*
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
330,000
|
350,000
|
350,000
|
n.a.
|
Current Guidance
(oz)
|
334,596
(actual)
|
330,000
|
350,000
|
330,000
|
Canadian Malartic
Forecast 2020**
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne
(C$)
|
|
9,710
|
1.15
|
87.9%
|
$27
|
*Includes 2019
pre-commercial gold production of 3,137 ounces at the Barnat
pit
|
**2020 Canadian
Malartic guidance in the table above excludes estimated
pre-commercial production tonnes from the Barnat pit. Estimated
pre-commercial production is expected to be approximately 15,500
ounces of gold
|
At Canadian Malartic (in which Agnico Eagle has 50% ownership),
the lower production guidance for 2020 (as compared to Previous
Guidance) is primarily due to the processing of lower-grade ore. A
reduced mining footprint and a higher density of underground
openings in the Canadian Malartic pit has limited the access to
higher-grade tonnes, which will be supplemented by lower-grade
stockpiles in 2020.
Goldex
Forecast
|
2019
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
115,000
|
120,000
|
117,500
|
n.a.
|
Current Guidance
(oz)
|
140,884
(actual)
|
137,500
|
135,000
|
130,000
|
Goldex Forecast
2020
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne
(C$)
|
|
2,765
|
1.70
|
91%
|
$42
|
At Goldex, the higher production guidance for 2020 and 2021 (as
compared to Previous Guidance) is largely due to the acceleration
of mining rates from the Deep 1 area as well as the South Zone. The
increased mining rates have been supported by strong performance of
the Rail-Veyor haulage system, which is now at design rates. A new
maintenance bay is expected to be completed later this year, which
could result in additional Rail-Veyor capacity.
NUNAVUT REGION
Meadowbank Complex
Forecast
|
2019*
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
200,000
|
272,500
|
351,000
|
n.a.
|
Current Guidance
(oz)
|
193,489
(actual)
|
245,000
|
372,500
|
415,000
|
*Includes 2019
pre-commercial gold production of 35,281 ounces at Amaruq (previous
guidance of 40,000 ounces)
|
Meadowbank Complex
Forecast
2020
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne
|
|
2,826
|
2.90
|
93%
|
$145
|
At the Meadowbank Complex, the lower production guidance for
2020 (as compared to Previous Guidance) is due to a slower than
expected ramp up of mining activities in the Amaruq Whale Tail pit,
which will primarily impact the first quarter of 2020. Efforts are
underway to optimize operations, both increasing production and
reducing costs.
The higher production guidance for 2021 (as compared to Previous
Guidance) is due to a slight increase in expected grade and
improved productivity expected to result from initiatives being put
in place in 2020. Costs in 2021 are expected to improve
significantly over 2020.
The Company is taking a phased approach to development at the
Amaruq underground project. Additional capital is being spent
in 2020 to further extend underground development at the Whale Tail
deposit. At year-end 2019, the Company declared an initial
underground probable mineral reserve of 577,000 ounces of gold (3.3
million tonnes grading 5.43 g/t gold). The Company believes
that there is good potential to further increase the mineral
reserves. The Company's current evaluations forecast
approximately 50,000 to 60,000 ounces gold being produced from
underground operations beginning in 2022.
Meliadine
Forecast
|
2019*
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
230,000
|
385,000
|
365,000
|
375,000
|
Current Guidance
(oz)
|
238,394
(actual)
|
350,000
|
385,000
|
397,500
|
*Includes
pre-commercial gold production of 47,281 ounces at Meliadine
(previous guidance of 60,000 ounces)
|
Meliadine Forecast
2020**
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne
(C$)
|
|
1,345
|
8.00
|
96.4%
|
$216
|
**2020 Meliadine
guidance in the table above excludes estimated pre-commercial
production tonnes relating to the Meliadine Phase 2 expansion.
Estimated pre-commercial production is expected to be approximately
16,500 ounces of gold
|
At Meliadine, the lower production guidance for 2020 (as
compared to Previous Guidance) is primarily due to a more
conservative ramp up in the mining plan, which will result in lower
grade and tonnage processed in 2020, primarily in the first half of
the year. The lower grades are primarily related to changes
in the mining sequence, while the lower tonnage is largely due to
modifications to the front end of the crushing circuit.
The higher production guidance for 2021 and 2022 (as compared to
Previous Guidance) is primarily due to the advancement of the Phase
2 expansion, which results in increased tonnage processed, albeit
at lower grades (from the Tiriganiaq open pits). Additional details
on the Phase 2 expansion are provided in the Meliadine operating
section below.
Minesite costs per tonne at Meliadine are expected to decline as
production levels increase.
FINLAND
Kittila
Forecast
|
2019
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
175,000
|
215,000
|
245,000
|
n.a
|
Current Guidance
(oz)
|
186,101
(actual)
|
195,000
|
235,000
|
262,500
|
Kittila Forecast
2020
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne
(EUR)
|
|
1,640
|
4.30
|
86%
|
77
|
At Kittila, the lower production guidance for 2020 and 2021 (as
compared to Previous Guidance) is primarily due to a slight
decrease in the reserve grade due to minor revisions to the reserve
methodology, and mining sequence changes related to the underground
expansion project, which is expected to be completed in 2022.
Southern Business
Pinos Altos
Forecast
|
2019
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
165,000
|
150,000
|
146,500
|
n.a.
|
Current Guidance
(oz)
|
155,124
(actual)
|
150,000
|
130,000
|
137,500
|
Pinos Altos
Forecast 2020
|
Total Ore
('000 tonnes)
|
Gold (g/t)
|
Gold
Recovery
(%)
|
Silver
(g/t)
|
Silver Mill
Recovery
(%)
|
Minesite
Costs per
Tonne
|
|
2,260
|
2.2
|
93.9%
|
55.50
|
48.2%
|
$62
|
At Pinos Altos, the lower
production guidance for 2021 (as compared to Previous Guidance) is
largely due to a reduction in grade related to the mining sequence
at Pinos Altos and a higher
proportion of lower-grade ore being sourced from the Sinter
deposit. The Company is evaluating the potential to develop the
Reyna de Plata deposits and the Cubiro satellite zone, which could
extend the mine life at Pinos
Altos.
Creston Mascota
Forecast
|
2019
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
35,000
|
22,500
|
—
|
n.a.
|
Current Guidance
(oz)
|
48,380
(actual)
|
35,000
|
—
|
—
|
Creston Mascota
Forecast
2020
|
Total Ore
('000 tonnes)
|
Gold (g/t)
|
Gold
Recovery
(%)
|
Silver
(g/t)
|
Silver
Recovery
(%)
|
Minesite
Costs per
Tonne
|
|
420
|
2.77
|
93.8%
|
143.36
|
36.4%
|
$67
|
At Creston Mascota, the significantly higher production guidance
for 2020 (as compared to Previous Guidance) is largely due to
higher grade ore. Additional higher-grade ore was identified in the
fourth quarter of 2019, but access was limited due to higher than
expected rainfall. Mining activities are now forecast to continue
through the first half of 2020, with leaching activities expected
to continue through year-end 2020. Costs are expected to decline
once mining activities have ceased.
La India
Forecast
|
2019
|
2020
|
2021
|
2022
|
Previous Guidance
(oz)
|
90,000
|
95,000
|
90,000
|
n.a.
|
Current Guidance
(oz)
|
82,190
(actual)
|
90,000
|
90,000
|
67,500
|
La India Forecast
2020
|
Total Ore
('000 tonnes)
|
Gold (g/t)
|
Gold
Recovery
(%)
|
Silver
(g/t)
|
Silver
Recovery
(%)
|
Minesite
Costs per
Tonne
|
|
6,118
|
0.69
|
66.3%
|
1.98
|
16.1%
|
$12
|
At La India, current guidance is essentially in line with the
Previous Guidance. The Company continues to evaluate the potential
to develop other satellite zones such as El Realito and Chipriona.
Total Capital Expenditures Expected to Decline in 2021;
Sustaining Capital Costs Expected to Remain Stable through
2022
The estimated capital expenditures for 2020 total approximately
$740 million, which includes
approximately $332 million of
sustaining capital at the Company's operating mines and
$382 million on growth projects, as
set out in the table below. Additionally, approximately
$26 million is estimated to be spent
on capitalized exploration, approximately $90 million on expensed exploration and
approximately $40 million on
corporate development, project evaluations and technical
services.
Estimated 2020
Capital Expenditures
|
(In thousands of
US dollars)
|
|
|
Sustaining
Capital
|
|
Development
Capital
|
Capitalized
Exploration
|
|
|
|
Sustaining
|
|
Non-
sustaining
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
$
|
87,900
|
|
$
|
37,100
|
|
$
|
2,000
|
|
—
|
Canadian Malartic
mine (50%)*
|
52,600
|
|
22,400
|
|
—
|
|
—
|
Meadowbank
Complex
|
46,600
|
|
47,200
|
|
—
|
|
—
|
Amaruq Underground
project
|
—
|
|
29,000
|
|
—
|
|
—
|
Meliadine
mine*
|
37,800
|
|
64,500
|
|
2,900
|
|
4,000
|
Kittila
mine
|
38,600
|
|
134,100
|
|
9,000
|
|
—
|
Goldex
mine
|
25,500
|
|
14,700
|
|
4,300
|
|
2,100
|
Pinos Altos
mine
|
29,100
|
|
8,200
|
|
500
|
|
—
|
Creston Mascota
mine
|
—
|
|
—
|
|
—
|
|
—
|
La India
mine
|
12,200
|
|
24,900
|
|
700
|
|
—
|
Other
|
2,000
|
|
—
|
|
100
|
|
—
|
Total Capital
Expenditures
|
$
|
332,300
|
|
$
|
382,100
|
|
$
|
19,500
|
|
$
|
6,100
|
|
*2020 forecast
capital expenditures relating to Canadian Malartic and Meliadine
incorporate anticipated pre-production gold ounces of 15,500 and
16,500, respectively.
|
Using the Company's 2020 budget assumptions, total capital
expenditures are forecast to be approximately $650 to $700
million in 2021. Annual sustaining capital expenditures
(included in the above) for 2021 and beyond are expected to remain
stable at approximately $325 to
$375 million. Based on the extensive
list of high-quality development growth opportunities, which are
set out below, and depending on prevailing gold prices and the
timing of project approvals, the Company expects that total future
growth and sustaining capital expenditures in future years could be
at similar levels to 2021.
2020 Exploration Program and Budget – Key Programs at
Kittila, Goldex, Kirkland Lake,
Canadian Malartic, Santa Gertrudis
and Satellite Targets at Pinos
Altos
A large component of the 2020 exploration program will be
focused on the Canadian Malartic and Goldex mines in the Abitibi
region of northwest Quebec, the
Sisar-Rimpi zones at the Kittila mine in Finland, the Kirkland Lake project in northeastern
Ontario, the Santa Gertrudis project in Sonora State,
Mexico and satellite targets at
the Pinos Altos mine in
Mexico. The goal of these
exploration programs is to delineate mineral reserves and mineral
resources that can help supplement the Company's existing
production profile.
At the Kittila mine, the Company expects to spend $11.8 million for work that will include 58,000
metres of drilling focused on the Main Zone in the Roura and Rimpi
areas as well as the Sisar Zone. The goal of this program is to
further explore the Kittila mineral reserve and mineral resource
potential and demonstrate the economic potential of the Sisar Zone
as a new mining horizon at Kittila.
The drilling includes 46,000 metres of capitalized conversion
drilling at the mine as described above and 12,000 metres of
expensed regional exploration drilling on targets beyond the
current mineral resource area.
At the Goldex mine, the Company expects to spend $6.9 million for 79,000 metres of exploration and
conversion drilling focused on the M Zone, Deep 1, Deep 2 and South
zones.
At the Kirkland Lake project in
Ontario, the Company expects to
spend $10.3 million for 48,000 metres
of exploration drilling focused on converting and expanding mineral
resources at the Upper Beaver and Upper
Canada deposits, which is expected to lead to an updated
mineral resource estimate for the Upper Beaver deposit at year-end
2020.
At the Amaruq deposit at the Meadowbank Complex, the Company
expects to spend $2.9 million for
8,400 metres of exploration drilling to test regional targets with
a focus on deposits with open-pit potential. Drilling will
also test the vertical extensions of near surface mineral
occurrences at Mammoth Lake.
Another $2.0 million is budgeted
for 5,500 metres of exploration drilling on other properties around
Amaruq to test near surface open-pit targets close to existing road
infrastructure between Amaruq and Baker
Lake.
At the Canadian Malartic mine, the Company expects to spend
$7.5 million (50% basis) for 90,000
metres (100% basis) of exploration and conversion drilling
primarily focused on declaring new inferred mineral resources at
the East Gouldie Zone and infilling the current inferred mineral
resources in the zone to convert them into indicated mineral
resources by year-end 2020. In addition to the drilling at
East Gouldie, the Company is planning to spend another $5.0 million (50% basis) on 22,000 metres (100%
basis) of exploration drilling to test other regional targets at
Canadian Malartic and on studies.
At the Santa Gertrudis project
in Sonora, Mexico, the Company
expects to spend $10.4 million for
approximately 25,000 metres of drilling that will be focused on
expanding the mineral resource, testing the extensions of
high-grade structures such as the Amelia deposit and exploring new
targets.
At the Pinos Altos mine, the
Company expects to spend $7.8 million
for 42,000 metres of drilling, in work that will include 5,000
metres of drilling to extend the new Reyna East Zone along strike
and at depth and 10,000 metres to infill and expand the mineral
resource at Cubiro and Cubiro North.
2020 Global Exploration Program and Corporate Development
Budget
|
Expensed
Exploration
|
|
Capitalized
Exploration
|
|
US$
millions
|
|
000
metres
|
|
US$
millions
|
|
000
metres
|
Nunavut
|
|
|
|
|
|
|
|
Amaruq
|
$
|
2.9
|
|
8.4
|
|
|
|
|
Meliadine
|
1.7
|
|
4.9
|
|
6.9
|
|
30.0
|
Other
|
2.5
|
|
6.3
|
|
|
|
|
Nunavut
subtotal
|
7.1
|
|
19.6
|
|
6.9
|
|
30.0
|
Quebec
|
|
|
|
|
|
|
|
LaRonde and
LZ5
|
1.5
|
|
9.5
|
|
2.0
|
|
20.6
|
Goldex
|
0.5
|
|
3.0
|
|
6.4
|
|
76.0
|
Other
|
2.7
|
|
14.2
|
|
|
|
|
Quebec
subtotal
|
4.7
|
|
26.7
|
|
8.4
|
|
96.6
|
Canadian Malartic
projects*
|
|
|
|
|
|
|
|
Canadian Malartic
mine*
|
7.5
|
|
90.0
|
|
|
|
|
Regional exploration
and studies
|
5.0
|
|
22.0
|
|
|
|
|
Canadian Malartic
subtotal
|
12.5
|
|
112.0
|
|
—
|
|
—
|
Ontario
|
|
|
|
|
|
|
|
Kirkland Lake
projects
|
10.3
|
|
48.0
|
|
|
|
|
Hammond
Reef
|
1.1
|
|
5.0
|
|
|
|
|
Ontario
subtotal
|
11.4
|
|
53.0
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
Kittila
|
2.8
|
|
12.0
|
|
9.0
|
|
46.0
|
Barsele
|
1.9
|
|
8.3
|
|
|
|
|
Other
|
1.1
|
|
—
|
|
|
|
|
Europe
subtotal
|
5.8
|
|
20.3
|
|
9.0
|
|
46.0
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos, Creston
Mascota
|
7.3
|
|
39.0
|
|
0.5
|
|
3.0
|
La India
|
6.6
|
|
22.0
|
|
0.7
|
|
5.0
|
El Barqueno
|
2.3
|
|
—
|
|
|
|
|
Santa
Gertrudis
|
10.4
|
|
25.0
|
|
|
|
|
Other
|
7.3
|
|
13.0
|
|
0.1
|
|
|
Mexico
subtotal
|
33.9
|
|
99.0
|
|
1.3
|
|
8.0
|
USA
|
7.8
|
|
12.0
|
|
|
|
|
G&A, land fees,
etc.
|
6.4
|
|
|
|
|
|
|
Total
Exploration
|
$
|
89.6
|
|
342.6
|
|
$
|
25.6
|
|
180.6
|
|
|
|
|
|
|
|
|
Total Corporate
Development, Project Evaluations and
Technical Services
|
$
|
40.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Exploration
and Corporate Development
|
$
|
129.9
|
|
|
|
|
|
|
*For the Canadian
Malartic Mine operations and projects, in which Agnico Eagle holds
a 50% indirect interest, the expenses in this table represent 50%
of the total expenses, but the metres represent 100% of the metres
of drilling.
|
Pipeline Projects Continue to Advance – Opportunities to
Enhance Short-Term and Longer-Term Production
The Company has an extensive pipeline of development and
advanced exploration projects, several of which are located near
its existing mining operations. These projects have the potential
to add further value and enhance the current gold production
profile in the short-term (2022-2023) and longer-term (2023 and
beyond). Updates on the various projects are set out below.
Near-Term Opportunities to Enhance Production Starting in
2022
The Company is evaluating several potential opportunities (none
of which has yet been approved for construction, with the exception
of the Meliadine Phase 2 expansion) at a number of existing
operations to build further value and enhance the gold production
profile starting in 2022. These opportunities are set out in the
table below with certain projects discussed in more detail
below.
Minesite/
Region
|
Opportunity
|
Gold Mineral
Resources/Mineral Reserves*
|
LaRonde
Complex
|
Drilling continues to
encounter high-grade mineralization in the West mine at
depth. Exploration strategy is being reviewed to evaluate
extensions of previously mined zones and areas that have seen
limited exploration activity (portions of the Bousquet
property). At LZ5, drilling will be carried out to expand
mineral reserves and mineral resources at depth and test other
nearby satellite zones (Ellison)
|
Ellison has indicated
mineral resources of 71koz and inferred mineral resources of
461koz
|
Goldex
|
Potential for
increased throughput from Deep 1 and potential for additional
development of Deep 2. Also potential for increased gold
production from the South Zone
|
Deep 2 has mineral
reserves of 179koz, indicated mineral resources of 177koz and
inferred mineral resources of 381koz. The South Zone has
mineral reserves of 107koz, indicated mineral resources of 43koz
and inferred mineral resources of 228koz
|
Meadowbank
Complex
|
Ongoing evaluation of
the potential to develop portions of the higher grade underground
deposits at Amaruq in permafrost only
|
The Amaruq
underground has mineral reserves of 577koz in permafrost
only
|
Meliadine
|
Staged implementation
of the Phase 2 expansion. Initial work will focus on open pit
development at the Tiriganiaq Zone. Additional drilling is
planned to expand and upgrade the existing mineral resource base in
the immediate mine area
|
Tiriganiaq has open
pit mineral reserves of 590koz
|
Canadian Malartic
(50%)
|
Continued evaluation
of potential production scenarios from the Odyssey and East
Malartic underground zones to a depth of 1,000 metres.
Drilling in 2020 will be largely focused on the newly discovered
East Gouldie Zone
|
|
Pinos Altos/Creston
Mascota
|
Ongoing exploration
and evaluation of potential development scenarios for the Cubiro
and Reyna de Plata satellite zones
|
Cubiro has
underground indicated mineral resources of 212koz gold and 1,403koz
silver and inferred mineral resources of 136koz gold and 912koz
silver. Reyna de Plata has probable mineral reserves of 64koz
gold and 2,007koz silver, indicated mineral resources of 159koz
gold and 4,307koz silver and inferred mineral resources of 121koz
gold and 2,970koz silver
|
La India
|
Continued exploration
and evaluation of the El Realito and Chipriona zones
|
Chipriona has
indicated mineral resources of 45koz gold, 2.1Moz silver, 359
tonnes of copper and 17,000 tonnes of zinc and inferred mineral
resources of 238koz gold, 29.5Moz silver, 15,400 tonnes of copper
and 86,900 tonnes of zinc El Realito has mineral reserves of 106koz
gold and 485koz silver, measured and indicated mineral resources of
38koz gold and 232koz silver and inferred mineral resources of 4koz
gold
|
*For a detailed
discussion of mineral reserves and mineral resources see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31,
2019)".
|
The original Meliadine mine plan envisioned a 3,750 tpd
mill with ore being sourced entirely from underground in years one
to four. The mill capacity for Phase 2 was expected to increase to
approximately 6,000 tpd, with ore being sourced from both
underground and open pits starting in year five. The increased
tonnage from the Phase 2 expansion was forecast to offset an
expected decline in ore grade and keep production stable at
approximately 400,000 ounces of gold per year.
The current Meliadine mill facility has demonstrated the ability
to operate well in excess of the initial 3,750 tpd capacity
(maximum daily rate in 2019 reached of 4,950 tpd). As a result, the
Company has decided to accelerate the start of the Phase 2
expansion by approximately two years to utilize this extra mill
capacity. The mill expansion will be undertaken in stages with
processing expected to increase from current levels to 4,600 tpd in
the fourth quarter of 2020 and ultimately reaching 6,000 tpd in
2024. The initial source of open pit ore will be from pits
developed on the Tiriganiaq deposit. Development of the open pits
is expected to provide additional mining flexibility.
The Tiriganiaq open pits contain probable gold mineral
reserves of 590,412 ounces (3.8 million tonnes grading 4.89 g/t
gold). These pits are expected to be mined in 2020 through 2027,
with production gradually ramping up over the eight-year reserve
life. The acceleration of the Phase 2 expansion is expected to
result in slightly higher gold production (compared to Previous
Guidance) in 2021 and 2022. Production from the Tiriganiaq pit in
2020 is forecast to be approximately 16,500 ounces, all of which is
considered pre-commercial.
At Amaruq, conversion drilling of underground
mineral resources was successful in 2019 beneath the planned Whale
Tail pit bottom and in the V Zone at depth. Amaruq's mineral
reserves increased 15% year-over-year to approximately 3.3 million
ounces of gold, divided between open-pit proven and probable
mineral reserves of approximately 2.7 million ounces of gold (22.8
million tonnes grading 3.74 g/t gold) in the Whale Tail deposit and
V Zone, and initial underground probable mineral reserves in the
Whale Tail deposit of approximately 577,000 ounces of gold (3.3
million tonnes grading 5.43 g/t gold).
Aided by an exploration ramp that is currently 255 metres below
surface and continues to be extended, exploration drilling has
confirmed grades and widths of the Whale Tail and V Zone high-grade
ore shoots at depth. Recent highlight intercepts include 16.8 g/t
gold over 9.2 metres at 354 metres depth in the Whale Tail ore
shoot and 12.3 g/t gold over 8.2 metres at 607 metres depth in the
V Zone ore shoot. See the Meadowbank Complex section later in this
news release for details.
The plan for 2020 is to spend $2.9
million for 8,400 metres of exploration drilling to test new
exploration targets outside of the mineral resources area in the
eastern extension of the V Zone and in Mammoth Lake.
Work is continuing at Amaruq to evaluate the potential for an
underground operation, which could run concurrent with the open pit
deposits. Exploration continues to focus on finding additional
sources of open pit ore. Preliminary work suggests that there is an
opportunity to selectively mine portions of the higher-grade
underground deposits at Amaruq in permafrost only. This approach is
expected to reduce operating and capital costs (limited heating
requirements), while preserving the option to mine additional
underground mineral reserves and/or mineral resources.
The Company believes it is possible that underground production
could begin in 2022 and run through 2026. Initial annual gold
production from underground could be at a rate of approximately
50,000 to 60,000 ounces, and average approximately 110,000 ounces
per year over the life of mine. Additional work is being carried
out to evaluate the potential to increase mineral reserves and
exploit a portion of the underground mineral resources. A more
detailed project evaluation is expected to be released before
year-end. The Company will continue to use a phased approach to the
underground development program at Amaruq in 2020.
At Canadian Malartic (50% owned), most of the exploration
in 2019 was focused on the East Gouldie Zone, which was discovered
in late 2018. East Gouldie is located south of the East Malartic and Odyssey zones starting at a
depth of approximately 700 metres below surface.
The Canadian Malartic General Partnership (the "Partnership")
completed approximately 82,000 metres (100% basis) of exploration
drilling in 2019, culminating in an initial inferred mineral
resource in the central portion of the East Gouldie Zone of 1.4
million ounces of gold (12.8 million tonnes grading 3.34 g/t gold)
(reflecting Agnico Eagle's 50% interest), as of December 31, 2019.
Infill drilling highlights from the fourth quarter include 8.6
g/t gold over 25.8 metres at 1,071 metres depth and 4.2 g/t gold
over 39.3 metres at 1,631 metres depth. In 2020 at East Gouldie,
the aim of the drill program is to declare new inferred mineral
resources at the zone and infill the current inferred mineral
resources in the zone to convert them into indicated mineral
resources by year-end 2020.
At East Malartic, 1.2 million
ounces of gold (50% basis) have been added to inferred mineral
resources with the inclusion of a deeper portion of the deposit
between 1,000 metres to 1,800 metres depth. Indicated mineral
resources are 347,000 ounces of gold (5.0 million tonnes grading
2.18 g/t gold). Total inferred mineral resources at East Malartic have grown 85% year-over-year to
2.6 million ounces of gold (39 million tonnes grading 2.05 g/t
gold) (50% basis), as of December 31,
2019.
Additional details are available in the Mineral Reserves and
Mineral Resources sections of this news release.
The substantial increases in mineral resources, particularly at
the East Gouldie and East Malartic
zones, are anticipated to eventually replace mineral reserves
currently being mined at the adjacent Canadian Malartic pit.
The Partnership continues to evaluate the Odyssey project with
consideration being given to potential new development synergies
between the various zones at East Gouldie, Odyssey, East Malartic and Canadian Malartic.
Subject to a positive development decision, initial production
could potentially start in 2023. The Partnership is
evaluating scenarios to optimize the project, which include
discussions with royalty holders and other stakeholders to enhance
the economics of the project. Given the Company's robust
pipeline of development projects, the Company does not currently
anticipate approving the project for development unless these
discussions are successful and the project economics are
significantly improved.
At Goldex, the Company continues to evaluate the
potential to accelerate mining rates in the Deep 1 and Deep 2 zones
as well as the South Zone. Mineralization at Deep 2 remains open
laterally and at depth, while the South Zone is open in all
directions. Future exploration is expected to focus on the
conversion of portions of the mineral resources into mineral
reserves in each of these zones.
Development of the Akasaba West open pit has been
postponed indefinitely based on the prioritization of development
capital spending. Akasaba West contains mineral reserves of 147,000
ounces of gold and 25,900 tonnes of copper (5.4 million tonnes
grading 0.85 g/t gold and 0.48% copper) and has the potential to
contribute approximately 20,000 ounces of gold per year to the
Goldex production profile if developed into production.
Longer-Term Opportunities to Provide Production Growth Beyond
2023
Agnico Eagle has a strong pipeline of development projects that
could provide further gold production growth beyond 2023. These
opportunities are typically at an earlier stage than those outlined
above. A summary of the longer-term opportunities is set out in the
following table with certain projects discussed in further detail
below.
Minesite/Region
|
Opportunity
|
Gold Mineral
Resources/Mineral Reserves*
|
Goldex
|
Evaluation of the
Deep 2 Zone (below 1,500 metres)
|
|
Kittila
|
Drilling continues to
extend the mineralization at depth and there is good potential to
further optimize the development of the lower mine with shaft
access (shaft construction is expected to be completed in the
second quarter of 2021)
|
|
Meadowbank
Complex
|
Continued evaluation
of the regional potential at Amaruq. A new surface discovery
could potentially extend the underground mine life
|
|
Meliadine
|
Further drill-testing
of known zones and gold occurrences on the 80-kilometre long
greenstone belt
|
Approximately 50 gold
showings have been documented at the Meliadine property
|
Canadian
Malartic
(50%)
|
Evaluation of the
potential for production from deeper portions (below 1,000 metres)
of the Odyssey and East Malartic underground zones and development
of the higher-grade East Gouldie Zone
|
|
Barsele
(55%)
|
Testing additional
mineralized zones, with a focus on volcanogenic massive sulphide
("VMS") targets
|
Barsele has 176koz of
indicated mineral resources and 1.0Moz of inferred mineral
resources
|
Santa
Gertrudis
|
Evaluation of known
mineralized trends with a view to potentially restart operations at
this past-producing heap leach mine. The recent discovery of
high-grade mineralization at Amelia opens up the potential to add a
mill circuit to process higher grade sulphide ore from
underground
|
Santa Gertrudis
mineral resources at open pit depths (including Amelia): 104koz of
indicated mineral resources and 717koz of inferred mineral
resources. The Amelia underground deposit has 451koz of
inferred mineral resources in sulphides
|
Kirkland
Lake
|
Continued evaluation
of potential production scenarios at Upper Beaver. Recent
drilling and reinterpretation has led to a significant increase in
mineral resources at the past producing Upper Canada mine that
could have synergies with the potential development of a mine at
the adjacent Upper Beaver project
|
Upper Beaver has
1.4Moz of mineral reserves, 403koz of indicated mineral
resources and 1.4Moz of inferred mineral resources. Upper
Canada has 693koz of indicated mineral resources and 1.8Moz of
inferred mineral resources
|
Hammond
Reef
|
A re-interpretation
of the deposit model is under way to evaluate potential production
scenarios in a higher gold price environment
|
Hammond Reef has
4.5Moz of measured and indicated mineral resources
|
*For a detailed
discussion of mineral reserves and mineral resources see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31,
2019)".
|
At the Kirkland Lake
project in Ontario, the Company is
evaluating potential development strategies at the Upper Beaver and
Upper Canada deposits. Solid drill
results from the 2019 exploration program, including 12.8 g/t gold
over 3.3 metres at 409 metres depth in the MQ Zone, have helped to
increase the mineral resources at the Upper Canada deposit. (See the Kirkland Lake section later in this news
release for details). The validation of historic data has led to a
reinterpretation of the entire Upper
Canada deposit that resulted in initial indicated mineral
resources of 693,000 ounces of gold (9.7 million tonnes grading
2.23 g/t gold) as of December 31,
2019, divided between 592,000 ounces of gold at underground
depth and 102,000 ounces of gold at open-pit depth. The inferred
mineral resources for Upper Canada
have been maintained at 1.8 million ounces of gold (17 million
tonnes grading 3.22 g/t gold) at open pit and underground depths.
Further details are available in the Mineral Resources section
later in this news release.
The Company expects to publish an updated mineral resource
estimate for the Upper Beaver deposit at year-end 2020. An increase
in the mineral resources in the shallow basalts would have a
significant positive impact on project economics, and could provide
added flexibility for a future underground operation.
At the Hammond Reef project in Ontario, agreements with local First Nations
are in place and the project has received environmental approval
from both Federal and Provincial agencies. In 2020, the Company
will continue to evaluate optimization of the deposit and potential
mining scenarios to improve project economics. The Company will
also be carrying out ore-sorting studies and evaluating other
regional opportunities. Hammond Reef contains measured and
indicated mineral resources of 4.5 million ounces of gold (208
million tonnes grading 0.67 g/t gold). Initial optimization studies
suggest that there could be potential for slightly higher
grades.
In January 2020, the Company
exercised its right of first refusal to repurchase a 2%
net smelter return royalty on the Hammond Reef project from Kinross
Gold Corporation for $12 million.
At the Santa Gertrudis
project in Sonora State, Mexico,
the high-grade Amelia deposit continues to grow. Exploration has
extended the Amelia ore shoot to 677 metres below surface, where
drilling has intersected 13.4 g/t gold and 436 g/t silver over 3.8
metres. (See the Santa Gertrudis
section later in this news release for details.) The updated
inferred mineral resource at Amelia is 70,000 ounces of gold (1.6
million tonnes grading 1.38 g/t gold) in oxides at open pit depth,
as well as an initial underground inferred mineral resource of
451,000 ounces of gold (3.1 million tonnes grading 4.58 g/t gold)
in the high-grade sulphide material.
The Amelia mineral resources are part of the Santa Gertrudis project mineral resource
estimate. Extensive drilling and studies in 2019 on the whole
Santa Gertrudis property have led
to initial indicated mineral resources of 104,000 ounces of gold
(5.1 million tonnes grading 0.64 g/t gold) at open pit depth and an
increased inferred mineral resource of 1.2 million ounces of gold
(22.1 million tonnes grading 1.64 g/t gold) mainly at open pit
depth, as of December 31, 2019.
Further details are available in the Mineral Resources section
later in this news release.
The 2019 Espiritu Santo discovery, 500 metres east-southeast of
Amelia, includes high-grade shallow mineralized structures yielding
intersections such as 5.9 g/t gold and 159 g/t silver over 6.5
metres at 90 metres depth. More drilling is planned this year to
test the extension of the new discovery in Espiritu Santo.
The Company is currently evaluating a potential production
scenario that utilizes a heap leach for lower grade mineralization
and a small mill facility to process higher-grade ore. The Company
believes that the Santa Gertrudis
project has the potential to be a similar size operation to La
India.
Mineral Reserve Gold Grade Improves by 5% and Ounces Decrease
Slightly in 2019, Driven by Record Gold Production, Depletion at
Low-Grade Mines and Conversion Drilling Success at Amaruq,
Meliadine and Goldex
At December 31, 2019, the
Company's proven and probable mineral reserves (net of 2019 gold
production) totaled 237 million tonnes of ore grading 2.83 g/t
gold, containing approximately 21.6 million ounces of gold. This is
a decrease of approximately 454,000 ounces of gold (2%) compared
with the prior year. The ore extracted from mines in 2019 contained
2.0 million ounces of gold in-situ (30.1 million tonnes
grading 2.04 g/t gold).
The Company's overall mineral reserve gold grade improved 5% to
2.83 g/t from 2.70 g/t, largely due to depletion of lower-grade
Canadian Malartic ore as well as inclusion of initial, high-grade
underground mineral reserves at the Amaruq deposit and an increase
in mineral reserves at the Meliadine mine from four open pits.
Agnico Eagle continues to have one of the highest mineral reserve
grades among its North American peers.
Highlights from the December 31,
2019 Mineral Reserve statement include:
- At the Amaruq deposit at the Meadowbank Complex, initial
underground probable mineral reserves of 0.6 million ounces of gold
(3.3 million tonnes grading 5.43 g/t gold). Amaruq's combined
open-pit and underground mineral reserves saw a net increase of 0.4
million ounces gold at year-end 2019
- At the Meliadine mine, increase of 0.3 million ounces of gold
in mineral reserves due to conversion to initial mineral reserves
at the new F Zone, Wesmeg, Normeg and Pump open pits, as well as
underground conversion
- At the Goldex mine, addition of 0.1 million ounces of gold in
mineral reserves (net of 2019 gold production) due to conversion
drilling in the Deep 1, Deep 2 and South zones
The Company's December 31, 2019
gold mineral reserves are set out below, compared with the gold
mineral reserves a year earlier:
Gold Mineral
Reserves
By Mine or
Deposit
|
Proven &
Probable
|
Average
Mineral
Reserve Gold
Grade
(g/t)
|
Mineral
Reserve
(000s
gold ounces)
|
|
2019
|
2018
|
Change
(000s
oz
gold)
|
2019
|
2018
|
Change
(g/t
gold)
|
Northern
Business
|
|
|
|
|
|
|
LaRonde
|
2,888
|
3,081
|
(193)
|
6.02
|
5.85
|
0.17
|
LaRonde Zone
5
|
686
|
681
|
5
|
2.30
|
2.25
|
0.05
|
Canadian Malartic
(50%)
|
2,389
|
2,780
|
(391)
|
1.11
|
1.10
|
0.01
|
Goldex
|
1,088
|
962
|
125
|
1.61
|
1.58
|
0.03
|
Akasaba
West
|
147
|
147
|
0
|
0.85
|
0.84
|
0.01
|
Meadowbank
mine
|
3
|
98
|
(95)
|
2.24
|
1.89
|
0.35
|
Amaruq
|
3,318
|
2,882
|
436
|
3.96
|
3.59
|
0.37
|
Meadowbank (incl.
Amaruq)
|
3,320
|
2,979
|
341
|
3.96
|
3.49
|
0.47
|
Meliadine
|
4,067
|
3,753
|
314
|
6.10
|
6.97
|
(0.87)
|
Upper
Beaver
|
1,395
|
1,395
|
0
|
5.43
|
5.43
|
0
|
Kittila
|
4,096
|
4,414
|
(318)
|
4.40
|
4.50
|
(0.10)
|
Subtotal
|
20,077
|
20,192
|
(116)
|
3.10
|
2.98
|
0.12
|
Southern
Business
|
|
|
|
|
|
|
Pinos
Altos
|
957
|
1,184
|
(227)
|
2.06
|
2.15
|
(0.09)
|
Creston
Mascota
|
61
|
82
|
(21)
|
2.49
|
1.77
|
0.72
|
La India
|
490
|
581
|
(90)
|
0.75
|
0.74
|
0.01
|
Subtotal
|
1,508
|
1,847
|
(338)
|
1.32
|
1.34
|
(0.02)
|
Total Mineral
Reserves
|
21,585
|
22,039
|
(454)
|
2.83
|
2.70
|
0.13
|
Data set out in the table above and certain other data in this
news release have been rounded to the nearest thousand. See
"Detailed Mineral Reserves and Mineral Resources Data (as of
December 31, 2019)" at the end of
this news release for more details. Mineral reserves are
in-situ, taking into account all mining recoveries and dilutions,
before mill or heap-leach recoveries.
The economic parameters used to estimate mineral reserves and
mineral resources for all properties are set out in the table
below. In prior years, the Company's economic parameters were
determined using historic three-year average metals prices and
foreign exchange rates in accordance with the U.S. Securities and
Exchange Commission (the "SEC") guidelines. These guidelines
require the use of prices that reflect current economic conditions
at the time of mineral reserve estimation, which the SEC has
interpreted to mean historic three-year average prices. Given
the current commodity price environment, Agnico Eagle continues to
use more conservative gold and silver prices.
Assumptions used for the December 31,
2019 mineral reserves estimate at all mines and advanced
projects reported by the Company
|
Metal
prices
|
Exchange
rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
peso per
US$1.00
|
US$ per
€1.00
|
Long-life
operations
and projects
|
$1,200
|
$15.50
|
$2.50
|
$1.00
|
$1.25
|
MXP17.00
|
$1.15
|
Short-life
operations
– Creston
Mascota
(Bravo) and
Sinter
satellite
operations
at Pinos
Altos
|
$1.30
|
MXP18.00
|
Not
applicable
|
Upper
Beaver*,
Canadian
Malartic
mine**
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
*The Upper Beaver
project has a net smelter return (NSR) cut-off value of
C$125/tonne
|
**The Canadian
Malartic mine uses a cut-off grade between 0.40 g/t and 0.43 g/t
gold (depending on the deposit)
|
The above metal price assumptions are below the three-year
historic gold and silver price averages (from January 1, 2017 to December 31, 2019) of approximately $1,302 per ounce and $16.57 per ounce, respectively. The mineral
resources at all properties (except Canadian Malartic) are
estimated using 75% of the cut-off grades used to estimate the
mineral reserves. At the Canadian Malartic mine, the mineral
resources are estimated using 80% of the cut-off grades used to
estimate the mineral reserves.
At the Amaruq deposit at the Meadowbank Complex, the Company
estimated initial underground probable mineral reserves of 577,000
ounces of gold (3.3 million tonnes grading 5.43 g/t gold).
Delineation and conversion drilling added another 44,000 ounces of
gold, offset by the initiation of commercial mining from the open
pit at Amaruq in 2019. Amaruq's combined open-pit and underground
mineral reserves saw a net increase of approximately 436,000 ounces
of gold at year-end 2019. As mining came to an end at Meadowbank in
2019, Meadowbank recorded a net decrease of 95,000 ounces of gold
in mineral reserves to almost nil at year end. During the 2019
transition year at the Meadowbank Complex, as mining commenced at
Amaruq and ceased at Meadowbank, approximately 208,000
in-situ ounces of gold were mined in total at the
Meadowbank Complex.
At the Meliadine mine, the conversion from indicated mineral
resources to mineral reserves of the F Zone, Wesmeg, Normeg and
Pump open pits added 364,000 ounces of gold in mineral reserves
(2.4 million tonnes grading 4.73 g/t gold). Delineation drilling
and the reinterpretation of mineralization added another
approximately 36,000 ounces of gold to mineral reserves while
approximately 98,000 ounces of gold was gained in mineral reserves
by using a lower cut-off grade. Offset by the mining of
approximately 253,000 in-situ ounces of gold in 2019,
overall there was a net increase of approximately 314,000 ounces of
gold in mineral reserves at Meliadine.
At the Goldex mine, approximately 264,000 ounces of gold were
added to mineral reserves due to conversion drilling in the Deep 1,
Deep 2 and South zones. This was partially offset by the mining of
approximately 153,000 in-situ ounces of gold in 2019,
resulting in a net increase of approximately 125,000 ounces of gold
in mineral reserves at Goldex.
At the Canadian Malartic mine, the net decrease of approximately
391,000 ounces of gold in mineral reserves (reflecting Agnico
Eagle's 50% interest) is largely due to the mining of approximately
376,000 in-situ ounces of gold (50%) in 2019. Some of the
increasing mineral resources at the Odyssey, East Gouldie and
East Malartic deposits may be
converted into mineral reserves in the future, to replace the ore
currently being mined at the adjacent Canadian Malartic pit.
At the Kittila mine, conversion and exploration drilling, as
well as a revision of reserve-estimation parameters, resulted in a
decrease of approximately 86,000 ounces of gold in mineral
reserves. With the mining of 212,000 ounces of in-situ gold
in 2019, the result was an overall decrease in mineral reserves of
318,000 ounces of gold at Kittila.
At Pinos Altos, a review of
mining parameters reduced mineral reserves by approximately 41,000
ounces of gold while a new cut-off grade reduced mineral reserves
further by approximately 24,000 ounces of gold. With the mining of
approximately 164,000 in-situ ounces of gold in 2019, there
was a net decrease of approximately 227,000 ounces of gold in
mineral reserves at Pinos Altos.
There were smaller net decreases of gold in mineral reserves at the
nearby Creston Mascota mine and the La India mine.
At the LaRonde mine, delineation and conversion drilling
programs added approximately 160,000 ounces of gold to mineral
reserves. This was more than offset by approximately 361,000 ounces
of in-situ gold mined in 2019, resulting in a net decrease
of approximately 193,000 ounces of gold in mineral reserves at
LaRonde.
It is the Company's goal to maintain its global mineral reserves
at approximately 10 times its annual gold production rate. The
current mineral reserves remain within this range when compared to
the Company's projected annual 2020 gold production guidance.
In addition to gold, Agnico Eagle's proven and probable mineral
reserves include by-product metals of approximately 37 million
ounces of silver at the Pinos
Altos, LaRonde, La India and Creston Mascota mines (50.6
million tonnes grading an average of 22.46 g/t silver), plus
120,000 tonnes of zinc and 39,000 tonnes of copper at the LaRonde
mine (14.9 million tonnes grading 0.80% zinc and 0.26% copper);
26,000 tonnes of copper at the Akasaba West project (5.4 million
tonnes grading 0.48% copper) and 20,000 tonnes of copper at the
Upper Beaver project (8.0 million tonnes grading 0.25% copper).
At an assumed gold price of $1,325 per ounce (leaving other assumptions
unchanged), the Company estimates there would be an approximate
5.2% increase in the gold contained in proven and probable mineral
reserves. Conversely, using a gold price of $1,075 (leaving other assumptions unchanged), the
Company estimates there would be an approximate 6.6% decrease in
the gold contained in proven and probable mineral reserves.
Measured and Indicated Mineral Resources Increase by 4% to
18.1 Million Ounces of Gold Due to Initial Indicated Mineral
Resources at Upper Canada,
Optimization of Estimation Method at Goldex and Conversion Drilling
at Multiple Projects
Highlights from the December 31,
2019 Measured and Indicated Mineral Resource statement
include:
- At the Upper Canada deposit at
the Kirkland Lake project, initial
indicated mineral resources of 0.7 million ounces of gold (9.7
million tonnes grading 2.23 g/t gold)
- At Goldex, indicated mineral resources increased by 328,000
ounces of gold mainly due to optimizing the estimation method
The Company's measured and indicated mineral resources now total
425 million tonnes grading 1.32 g/t gold, or 18.1 million ounces of
gold. This represents a 4% (665,000-ounce) increase in ounces of
gold, but a small decrease in grade from 1.36 g/t gold a year
earlier (see the Company's news release dated February 14, 2019 for details of previous mineral
resource estimate).
The increase in the Company's measured and indicated mineral
resources is mainly due to the inclusion of an initial
indicated mineral resources of 693,000 ounces of gold (9.7 million
tonnes grading 2.23 g/t gold) at the Upper Canada deposit at the Kirkland Lake project, where the mineral
resource confidence level was increased based on the validation of
historic data. These mineral resources are divided between 592,000
ounces of gold (7.8 million tonnes grading 2.36 g/t gold) in
underground indicated mineral resources and 102,000 ounces of gold
(1.8 million tonnes grading 1.72 g/t gold) of open-pit indicated
mineral resources.
Indicated mineral resources at Goldex have increased 19%
(328,000 ounces of gold) as the confidence level increased with
conversion drilling and improved resource estimation and
categorization method added approximately 586,000 ounces of gold.
This was partially offset by the re-categorization to mineral
reserves of several zones that reduced measured and indicated
mineral resources by approximately 257,000 ounces of gold.
Conversion drilling at the Goldex, Pinos Altos, Amaruq, Kittila and Chipriona
properties resulted in gains of approximately 249,000 ounces of
gold to measured and indicated mineral resources. Studies at LZ5
resulted in the addition of approximately 196,000 ounces of gold (3
million tonnes grading 2.00 g/t gold) in measured and indicated
mineral resources on levels 54 to 65. Offsetting these gains was
the conversion of approximately 844,000 ounces of gold to mineral
reserves at Amaruq and Meliadine.
Initial Inferred Mineral Resources at East Gouldie Discovery
and Additional Inferred Mineral Resources Below 1,000 Metres at
East Malartic Increase Inferred Mineral Resources by 19% to 21.5
Million Ounces
Highlights from the December 31,
2019 Inferred Mineral Resource statement include:
- At the East Gouldie discovery at the Canadian Malartic mine
property, initial inferred mineral resources of 1.4 million ounces
of gold (12.8 million tonnes grading 3.34 g/t gold) (reflecting
Agnico Eagle's 50% interest)
- At East Malartic, the revision
of the cut-off grade and mining assumptions resulted in the
inclusion of new mineral resources below 1,000 metres depth and
have increased inferred mineral resources by 1.2 million ounces of
gold (reflecting Agnico Eagle's 50% interest)
- At Kittila, inferred mineral resources have increased 70%
(716,000 ounces of gold) due to exploration at Roura and Rimpi, new
estimation parameters and changing the bottom limit for resources
reporting from 1,400 metres to 1,540 metres below surface
- At the Amelia deposit at Santa
Gertrudis, initial underground inferred mineral resources
have added 0.5 million ounces of gold (3.1 million tonnes grading
4.58 g/t gold)
The Company's inferred mineral resources now total 250 million
tonnes grading 2.67 g/t gold, or approximately 21.5 million ounces
of gold. This represents an approximate 19% (3.36 million ounce)
increase in ounces of gold, at a slight decrease in grade from 2.69
g/t gold in the December 2018
inferred mineral resources (see the Company's news release dated
February 14, 2019 for details
regarding the Company's December 2018
inferred mineral resources).
The increase to inferred mineral resources was mainly due to
substantial new inferred mineral resources being estimated at
underground depths on the Canadian Malartic mine property in the
East Gouldie and East Malartic
deposits east of the open pits, partially offset by the conversion
of inferred mineral resources to indicated mineral resources at
Goldex, Upper Canada, Amaruq and
Santa Gertrudis.
At East Gouldie, continued exploration and infill drilling
(announced in the Company's news release dated October 23, 2019) has resulted in the estimation
of an initial inferred mineral resource of 1.4 million ounces of
gold (12.8 million tonnes grading 3.34 g/t gold) (reflecting Agnico
Eagle's 50% interest). At East
Malartic, the revision of the cut-off grade and mining
assumptions resulted in the inclusion of new mineral resources
below 1,000 metres depth and have increased inferred mineral
resources by 1.2 million ounces of gold (reflecting Agnico Eagle's
50% interest), bringing total inferred mineral resources at
East Malartic to 2.6 million
ounces of gold (39 million tonnes grading 2.05 g/t gold) (50%
basis).
At Kittila, inferred mineral resources have increased by 70%
(716,000 ounces gold) due to several factors. Approximately 327,000
ounces of gold was added due to exploration drilling at Roura and
Rimpi; approximately 243,000 ounces of gold was added from the
adoption of new estimation parameters for the mineral
resources estimate; and approximately 146,000 ounces of gold was
added by lowering the bottom limit for estimating mineral resources
from 1,400 metres to 1,540 metres depth below surface. At
Kittila, inferred mineral resources now total 1.7 million
ounces of gold (13.8 million tonnes grading 3.90 g/t gold).
At Santa Gertrudis, the Company
has estimated an initial underground inferred mineral resource in
the Amelia deposit of approximately 451,000 ounces of gold (3.1
million tonnes grading 4.58 g/t gold). This more than offset the
conversion of 104,000 ounces of gold from inferred mineral
resources at open pit depth to indicated mineral resources.
Santa Gertrudis now has a total
inferred mineral resource of 1.2 million ounces of gold (22 million
tonnes grading 1.64 g/t gold).
The distribution of mineral resources by property is set out in
the following table. For full details including tonnage and grade,
see the "Detailed Mineral Reserve and Mineral Resource Data (as at
December 31, 2019)" later in this
news release.
December 31, 2019 Mineral
Resources*
|
Measured &
Indicated
Mineral
Resources
|
|
Inferred
Mineral
Resources
|
(000 oz
gold)
|
|
(000 oz
gold)
|
Northern
Business
|
|
|
|
LaRonde
|
488
|
|
854
|
LaRonde Zone
5
|
624
|
|
611
|
Ellison
|
71
|
|
461
|
Canadian Malartic
(50%)
|
431
|
|
92
|
Odyssey
(50%)
|
68
|
|
833
|
East Malartic
(50%)
|
347
|
|
2,596
|
East Gouldie
(50%)
|
0
|
|
1,369
|
Goldex
|
2,011
|
|
1,212
|
Akasaba
West
|
98
|
|
0
|
Zulapa
|
0
|
|
39
|
Meadowbank
|
90
|
|
0
|
Amaruq
|
1,070
|
|
1,520
|
Meadowbank Complex
(incl. Amaruq)
|
1,160
|
|
1,520
|
Meliadine
|
2,799
|
|
2,631
|
Hammond
Reef
|
4,501
|
|
12
|
Upper Beaver
(Kirkland Lake)
|
403
|
|
1,416
|
Amalgamated Kirkland
(Kirkland Lake)
|
265
|
|
406
|
Anoki/McBean
(Kirkland Lake)
|
320
|
|
382
|
Upper Canada
(Kirkland Lake)
|
693
|
|
1,768
|
Kittila
|
1,520
|
|
1,735
|
Kuotko
|
0
|
|
29
|
Kylmäkangas
|
0
|
|
250
|
Barsele
(55%)
|
176
|
|
1,005
|
Subtotal
Northern Business
|
15,976
|
|
19,221
|
|
|
|
|
Southern
Business
|
|
|
|
Pinos
Altos
|
1,057
|
|
435
|
Creston
Mascota
|
24
|
|
10
|
La India
|
238
|
|
15
|
Tarachi
|
294
|
|
68
|
Chipriona
|
45
|
|
238
|
El Barqueno
Gold
|
318
|
|
325
|
Santa
Gertrudis
|
104
|
|
1,168
|
Subtotal
Southern Business
|
2,079
|
|
2,259
|
Total Mineral
Resources
|
18,055
|
|
21,480
|
*Ownership of
mines and projects is 100% unless otherwise indicated. Where Agnico
Eagle's interest is less than
100%, the stated mineral resources reflect the Company's
interest.
|
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and
LaRonde Zone 5 mines), Goldex and a 50% interest in the Canadian
Malartic mines. These mines are located within 50 kilometres
of each other, which provides operating synergies and allows for
the sharing of technical expertise.
LaRonde Mine – Record Gold Grade in November 2019 Drives Strong Quarterly Production;
West Mine Drilling Continues to Encounter High Grade
Mineralization
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988.
LaRonde Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
505
|
|
515
|
Tonnes of ore milled
per day
|
5,489
|
|
5,598
|
Gold grade
(g/t)
|
6.35
|
|
5.14
|
Gold production
(ounces)
|
97,470
|
|
81,022
|
Production costs per
tonne (C$)
|
$
|
131
|
|
$
|
136
|
Minesite costs per
tonne (C$)
|
$
|
128
|
|
$
|
117
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
513
|
|
$
|
666
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
422
|
|
$
|
441
|
Production costs per tonne in the fourth quarter of 2019
decreased when compared to the prior-year period primarily due to
the timing of unsold concentrate inventory, partially offset by
higher underground mining and development costs and lower
throughput levels. Production costs per ounce in the fourth quarter
of 2019 decreased when compared to the prior-year period due to the
reasons described above and higher gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased
when compared to the prior-year period due to higher underground
mining and development costs and lower throughput levels. Total
cash costs per ounce in the fourth quarter of 2019 decreased when
compared to the prior-year period due to higher gold production,
partially offset by higher underground mining and development
costs.
Gold production in the fourth quarter of 2019 increased when
compared to the prior-year period due to higher grades and better
localized block model reconciliation from the West mine area. In
November, 2019, the mine achieved record gold grades of 7.1
g/t.
LaRonde Mine –
Operating Statistics
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
2,057
|
|
2,108
|
Tonnes of ore milled
per day
|
5,636
|
|
5,775
|
Gold grade
(g/t)
|
5.46
|
|
5.32
|
Gold production
(ounces)
|
343,154
|
|
343,686
|
Production costs per
tonne (C$)
|
$
|
139
|
|
$
|
139
|
Minesite costs per
tonne (C$)
|
$
|
125
|
|
$
|
119
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
627
|
|
$
|
664
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
464
|
|
$
|
445
|
Production costs per tonne for the full year 2019 were the same
when compared to the prior-year period. Production costs per ounce
for the full year 2019 decreased when compared to the prior-year
period mainly due to the timing of unsold concentrate
inventory.
Minesite costs per tonne for the full year 2019 increased when
compared to the prior-year period due to higher underground mining
and development costs and slightly lower throughput levels. Total
cash costs per ounce for the full year 2019 increased when compared
to the prior-year period due to the reasons described above.
Gold production for the full year 2019 was essentially the same
when compared to the prior year period.
As discussed in previous news releases, the risks of more
frequent and larger seismic events increase as the Company mines
deeper at LaRonde. Over the years, the Company has continued to
adapt and manage this risk. In early December 2019, the Company saw an increase in
seismicity in the West mine area outside of normal protocols. In
addition, as development has progressed in the West mine area,
additional geological structures (faulting and fracturing) have
been recognized. This information has now been incorporated into a
revised ground support plan for the West mine area.
This revised plan has been developed to ensure the safety of the
Company's employees, secure the higher-grade orebody to the west
and preserve existing mine infrastructure in the area. To implement
this plan, mining activity in the West mine was temporarily
suspended in mid-December 2019 and
refocused in the East mine area.
In the West mine area, the Company is currently reinforcing
ground support including installing additional support (shotcrete,
bolts and cables) in the main ramp and access points on various
levels. Seismicity is expected to continue but ground support will
be better adapted to manage stress levels.
In 2020, approximately 12% of the tonnage mined at LaRonde is
expected to be from the West mine area. This tonnage is
expected to increase to approximately 29% in 2021. The
capital cost for additional ground support in the West mine area in
2020 is approximately $1.5
million. The increase in operating costs related to
the additional ground support in 2020 is still being evaluated, but
is expected to be less than C$1.00
per tonne.
Normal mining activities in the West mine area are expected to
restart in late March or early April 2020. This delay is
expected to result in lower gold production in the first quarter of
2020 (approximately 70,000 ounces of expected gold production for
the quarter) as gold grades are lower in the East mine area.
Production and unit costs are expected to return to more normalized
levels in the second quarter through the fourth quarter of 2020
(approximately 90,000 ounces per quarter) as higher grade ore is
extracted from the West mine area.
Infrastructure continues to be developed to provide further
access to mine LaRonde 3 and construction of the level 308 East
mine cooling plant is ongoing. Development continues on the access
ramp to LaRonde 11-3. Production activities are expected to
begin at this zone in 2022.
Drilling continues to encounter high gold grades in the West
mine area of LaRonde 3 project
Exploration work at the LaRonde mine is focused on conversion
drilling in the LaRonde 3 project below 3,100 metres depth. The
LaRonde 3 mineral reserves and indicated mineral resources
currently extend to approximately 3,380 metres depth, while the
inferred mineral resources continue to down to 3,800 metres
Selected recent drill results are set out in the table below;
drill hole collar coordinates are set out in a table in the
Appendix of this news release. Pierce points for all these holes
are shown on the LaRonde Composite Longitudinal Section. All
intercepts reported for the LaRonde mine show capped gold grades
and uncapped silver, copper and zinc grades over estimated true
widths.
Recent exploration and infill drill results from the West
mine area of LaRonde 3 (below Level 311)
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade (g/t)
(capped)
|
Silver
grade (g/t)
(uncapped)
|
Copper
grade (%)
|
Zinc
grade (%)
|
LR-290-104
|
714.5
|
728.4
|
3,452
|
8.3
|
8.3
|
8.3
|
6.7
|
0.33
|
0.01
|
LR-290-107
|
674.9
|
682.9
|
3,413
|
4.9
|
26.0
|
22.0
|
15.5
|
0.62
|
0.02
|
*Holes at LaRonde
3 use a capping factor of 80 g/t gold and 1,000 g/t silver.
None of the silver, copper or zinc values in this table were
capped.
|
[LaRonde Mine Composite Longitudinal Section]
Below approximately 2.8 kilometres depth, the LaRonde mine
divides into two parallel lobes called the "East mine" and the
slightly offset "West mine", as shown in the LaRonde Mine Composite
Longitudinal Section. The gold grade generally increases with
depth in the deep part of the mine. The 2019 conversion drill
program has extended the core of higher gold grades in the West
mine downward to 3,450 metres depth. Recent results in this
area include hole LR-290-107 that intersected 22.0 g/t gold, 15.5
g/t silver, 0.62% copper and 0.02% zinc over 4.9 metres at 3,413
metres depth. Slightly deeper, hole LR-290-104 intersected 8.3
g/t gold, 6.7 g/t silver, 0.33% copper and 0.01% zinc over 8.3
metres at 3,452 metres depth.
These new high-grade intersections support and improve the
geological model, and are expected to result in conversion of
inferred mineral resources to indicated mineral resources in the
western portion of the LaRonde 3 project, in the year-end 2020
update.
The 2020 exploration budget at the LaRonde mine includes
$2.0 million for 9,600 metres of
conversion drilling at the LaRonde 3 project, 9,500 metres of
drilling to explore the potential of Zone 6 at depth and 1,500
metres of conversion drilling at LZ5.
Exploration is also planned at the adjacent Bousquet property,
where the Company is achieving strong operating results at LZ5 and
the LaRonde 11-3 mine development. An exploration budget of
$1.5 million in 2020 will include
6,000 metres of drilling targeting historic Bousquet zones, which
exhibit good exploration potential between 2,000 and 3,000 metres
depth, and 3,500 metres of drilling to explore Zones 6 and 20N at
depth. Compilation of historic data from the whole Bousquet
property will continue.
The development drift that is currently being driven west from
LaRonde's level 146 to the LaRonde 11-3 project at level 149 will
have the additional benefit of allowing for underground exploration
drilling into previously unexplored targets in Zone 6 and 20N,
starting in 2021.
LaRonde Zone 5 – Operations
Continue to Exceed Expectations; Further Production and Mineral
Reserve Growth Expected in 2020
The Company acquired the LZ5 project in 2003. The property
lies adjacent to and west of the LaRonde mine and previous
operators exploited the zone by open pit. In February 2017, the LZ5 project was approved by
Agnico Eagle's Board of Directors for development. Commercial
production was achieved in June
2018.
Production costs per tonne in the fourth quarter of 2019 were
C$74. Production costs per
ounce in the fourth quarter of 2019 were $840. Minesite costs per tonne in the
fourth quarter of 2019 were C$69. Total cash costs per ounce in the
fourth quarter of 2019 were $771. Gold production in the fourth quarter
of 2019 was 15,234 ounces of gold.
Production costs per tonne for the full year 2019 were
C$63. Production costs per
ounce for the full year 2019 were $689. Minesite costs per tonne for the full
year 2019 were C$66. Total cash
costs per ounce for the full year 2019 were $722. Gold production for the full year
2019 was 59,830 ounces of gold.
In the fourth quarter and for the full year 2018, the LZ5
circuit at the LaRonde mill processed ore for 55 days and 116
days respectively, as the mine achieved commercial production in
June 2018 and remaining Lapa ore was
still being processed on that circuit. As a result, the
operating results in the fourth quarter and for the full year 2019
are not comparable to the prior year periods.
Continued productivity improvements and successful automation
implementation (autonomous mucking and hauling) led to an increase
in daily tonnage to 2,600 tpd by the end of the fourth quarter of
2019. Production in 2020 is forecast to increase to 2,800
tpd.
Given the success in mining the upper portions of the LZ5
deposit (from surface to 330 metres), mining activities will be
extended to 480 metres starting in 2020. The Company is also
evaluating the potential to develop deeper portions of LZ5 (480
metres to 700 metres) and potentially mine portions of the
neighboring Ellison property from the LZ5 underground
infrastructure.
In 2020, the Company will continue to test and refine automated
mining techniques at LZ5 with a goal to increase the tonnage mined
remotely to greater than 15% of the total tonnes mined.
Canadian Malartic Mine – Main Highway By-Pass Opened and
First Pre-production Ore Processed From Barnat in the Fourth
Quarter of 2019
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation and
created the Partnership. The Partnership owns and operates
the Canadian Malartic mine in northwestern Quebec through a joint management
committee. Each of Agnico Eagle and Yamana has an indirect
50% ownership interest in the Partnership. All volume numbers
in this section reflect the Company's 50% interest in the Canadian
Malartic mine, except as otherwise indicated.
Canadian Malartic
Mine – Operating Statistics
|
|
|
|
All metrics
exclude pre-production tonnes and ounces
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
5,174
|
|
5,084
|
Tonnes of ore milled
per day (100%)
|
59,144
|
|
55,261
|
Gold grade
(g/t)
|
1.11
|
|
1.18
|
Gold production
(ounces)
|
81,905
|
|
84,732
|
Production costs per
tonne (C$)
|
$
|
27
|
|
$
|
26
|
Minesite costs per
tonne (C$)
|
$
|
26
|
|
$
|
25
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
668
|
|
$
|
604
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
630
|
|
$
|
562
|
Production costs per tonne in the fourth quarter of 2019 were
essentially the same when compared to the prior-year period.
Production costs per ounce in the fourth quarter of 2019 increased
when compared to the prior-year period due to higher contractor
costs, lower deferred capitalized stripping costs and lower gold
production.
Minesite costs per tonne in the fourth quarter of 2019 were
essentially the same when compared to the prior-year period.
Total cash costs per ounce in the fourth quarter of 2019 increased
when compared to the prior-year period due to the reasons described
above.
Gold production in the fourth quarter of 2019 decreased when
compared to the prior-year period primarily due to lower grades
resulting from less flexibility in the mining sequence.
Pre-commercial production in 2019 from the Barnat pit was 3,137
ounces of gold.
Canadian Malartic
Mine – Operating Statistics
|
|
|
|
All metrics
exclude pre-production tonnes and ounces
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
20,782
|
|
20,484
|
Tonnes of ore milled
per day (100%)
|
57,669
|
|
56,121
|
Gold grade
(g/t)
|
1.12
|
|
1.20
|
Gold production
(ounces)
|
331,459
|
|
348,600
|
Production costs per
tonne (C$)
|
$
|
26
|
|
$
|
25
|
Minesite costs per
tonne (C$)
|
$
|
26
|
|
$
|
25
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
628
|
|
$
|
573
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
606
|
|
$
|
559
|
Production costs per tonne for the full year 2019 were
essentially the same when compared to the prior-year period.
Production costs per ounce for the full year 2019 increased when
compared to the prior-year period due to higher contractor costs,
lower deferred capitalized stripping costs and lower gold
production.
Minesite costs per tonne for the full year 2019 were essentially
the same when compared to the prior-year period. Total cash
costs per ounce for the full year 2019 increased when compared to
the prior-year period due to the reasons described above.
Gold production for the full year 2019 decreased when compared
to the prior-year period due to lower grades resulting from less
flexibility in the mining sequence. A reduced mining
footprint and a higher density of underground openings in the
Canadian Malartic pit has limited the access to higher-grade
tonnes, which will be supplemented by lower-grade stockpiles in
2020.
In the fourth quarter of 2019, pre-commercial production began
at the Barnat extension project as the new Highway 117 deviation
opened for traffic in early October. Mining activities at the
Barnat pit are expected to continue to ramp up during 2020.
Approximately 15,500 ounces of pre-commercial gold production are
expected from the Barnat pit during the first nine months of
2020.
As part of ongoing stakeholder engagement, the Partnership is in
discussions with four First Nations groups concerning a potential
collaboration agreement, which will include a financial
component. As with the Good Neighbour Guide and other
community relations efforts at Canadian Malartic, the Partnership
is working collaboratively with stakeholders to establish
cooperative relationships that support the long-term potential of
the mine.
First Inferred Mineral Resource of 1.4 Million Ounces of Gold at
East Gouldie Zone; Inferred Mineral Resource Almost Doubles at
East Malartic
The Canadian Malartic property, together with the Rand Malartic
and Midway properties, cover in excess of 25 kilometres along the
Cadillac-Larder Lake deformation
zone.
Deep drilling east of the open pit in late 2018 resulted in the
discovery of a new gold-mineralized zone, located south of the
East Malartic and Odyssey zones,
named the East Gouldie Zone. The East Gouldie Zone has a
strike length of 1,300 metres in an east-west direction, dips 60
degrees north, and extends from 700 metres to 1,900 metres depth
below surface. East Gouldie is a silicified and carbonatized
mineralized zone with fine disseminated pyrite developed in sheared
greywacke units. Exploration results from East Gouldie were
last reported in the Company's news release dated October 23, 2019.
Five drill rigs completed 15,339 metres of exploration drilling
(100% basis) in the fourth quarter of 2019, aiming to reduce drill
spacing in the central portion of the East Gouldie Zone (from 1,000
metres to 1,800 metres depth). There was a total of 82,379
metres (100% basis) drilled in 2019. This drilling allowed
for the estimation of initial inferred mineral resources at East
Gouldie of 1.4 million ounces of gold (12.8 million tonnes grading
3.34 g/t gold) (reflecting Agnico Eagle's 50% interest), as of
December 31, 2019.
More details are available in the Mineral Resources section of
this news release.
Selected recent drill intercepts from the East Gouldie Zone are
set out in the table below. The drill hole collars are
located on the Canadian Malartic and Odyssey – Local Geology Map,
and the pierce points are shown on the Canadian Malartic and
Odyssey – Composite Longitudinal Section. The intercepts
reported for East Gouldie show uncapped and capped grades over
estimated true widths, based on a preliminary geological
interpretation that is being updated as new information becomes
available with further drilling.
Selected recent drill results from the East Gouldie Zone at
Canadian Malartic
|
|
|
|
|
|
|
|
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
MEX19-135W
|
East
Gouldie
|
1,871.0
|
1,917.0
|
1,631
|
39.3
|
5.1
|
4.2
|
MEX19-145WA
|
East
Gouldie
|
1,848.6
|
1,866.0
|
1,626
|
13.6
|
4.1
|
4.0
|
and
|
East
Gouldie
|
1,878.0
|
1,906.0
|
1,650
|
21.6
|
5.9
|
5.3
|
MEX19-149AWB
|
North of East
Gouldie
|
1,680.0
|
1,690.7
|
1,546
|
8.6
|
2.6
|
2.6
|
and
|
East
Gouldie
|
1,989.0
|
2,010.0
|
1,789
|
16.5
|
2.5
|
2.5
|
MEX19-152W
|
East
Gouldie
|
1,592.8
|
1,606.0
|
1,153
|
10.9
|
7.0
|
6.7
|
MEX19-153
|
East
Gouldie
|
1,723.8
|
1,756.0
|
1,551
|
29.3
|
3.1
|
3.1
|
MEX19-155
|
East
Gouldie
|
1,650.0
|
1,669.4
|
1,392
|
18.1
|
4.0
|
4.0
|
MEX19-156
|
East
Gouldie
|
1,749.0
|
1,805.0
|
1,524
|
49.6
|
3.2
|
3.2
|
MEX19-157
|
East
Gouldie
|
1,720.0
|
1,728.0
|
1,241
|
7.0
|
6.4
|
4.6
|
MEX19-158A
|
East
Gouldie
|
1,517.0
|
1,545.0
|
1,071
|
25.8
|
8.9
|
8.6
|
and
|
East
Gouldie
|
1,551.6
|
1,559.1
|
1,084
|
6.9
|
3.9
|
3.9
|
MEX19-161
|
East
Gouldie
|
1,751.0
|
1,770.0
|
1,546
|
17.3
|
5.8
|
5.5
|
ODY16-5037Ext
|
East
Gouldie
|
1,736.7
|
1,757.0
|
1,481
|
18.1
|
3.2
|
3.2
|
*Results from the
East Gouldie Zone use a capping factor of 15 g/t
gold.
|
[Canadian Malartic and Odyssey – Local Geology Map]
[Canadian Malartic and Odyssey – Composite Longitudinal
Section]
Recent drill results from the East Gouldie Zone continue to be
positive and consistent. In the centre of the zone within the
inferred mineral resource, the highest grade intercept was in hole
MEX19-158A, which intersected 8.6 g/t gold over 25.8 metres at
1,071 metres depth plus 3.9 g/t gold over 6.9 metres at 1,084
metres depth. Other notable intercepts in the central part of
the zone include hole MEX19-152W, which intersected 6.7 g/t gold
over 10.9 metres at 1,153 metres depth and hole MEX19-157, which
intersected 4.6 g/t gold over 7.0 metres at 1,241 metres depth.
Close to the western margin of the zone at depth, hole MEX19-156
intersected 3.2 g/t gold over 49.6 metres at 1,524 metres depth and
hole MEX19-153 intersected 3.1 g/t gold over 29.3 metres at 1,551
metres depth.
To the east at this depth, within the inferred mineral resource,
hole MEX19-135W intersected 4.2 g/t gold over 39.3 metres at 1,631
metres depth and hole MEX19-161 intersected 5.5 g/t gold over 17.3
metres at 1,546 metres depth.
In 2020 at East Gouldie, the aim of the drill program is to
support the declaration of new inferred mineral resources at the
zone and infill the current inferred mineral resources in the zone
to convert them into indicated mineral resources by year-end
2020.
At the Odyssey project, the Partnership is evaluating the
underground potential of several other gold deposits close to the
Canadian Malartic/Barnat open pit. These include the
East Malartic, Sladen, South
Sladen, Sheehan, Odyssey North and Odyssey South zones, located
under and immediately east of the pit, extending approximately 2.5
kilometres to the east.
At East Malartic, the inclusion
of deeper mineral resources (between 1,000 metres and 1,800 metres
depth) has increased inferred mineral resources by 85% or 1.2
million ounces of gold (reflecting Agnico Eagle's 50% interest),
bringing total inferred mineral resources at East Malartic to 2.6 million ounces of gold
(39 million tonnes grading 2.05 g/t gold). In addition,
East Malartic has indicated
mineral resources of 347,000 ounces of gold (5.0 million tonnes
grading 2.18 g/t gold) (50% basis), as of December 31, 2019.
Mineral resources at the nearby Odyssey deposit were basically
unchanged, with indicated mineral resources of 68,000 ounces of
gold (1.0 million tonnes grading 2.10 g/t gold) and inferred
mineral resources of 833,000 ounces of gold (11.7 million tonnes
grading 2.22 g/t gold) (50% basis), as of December 31, 2019.
An internal study is progressing at the Odyssey
project, with consideration being given to potential new
development synergies between the various zones at East Gouldie,
East Malartic, Odyssey and
Canadian Malartic. Subject to a positive development
decision, initial production could potentially start in 2023.
The Partnership is evaluating scenarios to optimize the project,
which include discussions with royalty holders and other
stakeholders to enhance the economics of the project. Given
the Company's robust pipeline of development projects, the Company
does not currently anticipate approving the project for development
unless these discussions are successful and the project economics
are significantly improved.
The Company has budgeted $12.5
million (50% basis) for 112,000 metres (100% basis) of
exploration and conversion drilling and studies at the
Canadian Malartic properties in 2020, with the East Gouldie Zone
being the highest exploration priority.
The increases in mineral resources, particularly at the East
Gouldie and East Malartic
zones, are anticipated to eventually replace mineral reserves
currently being mined at the adjacent Canadian Malartic pit.
Goldex – Records set for Quarterly Tonnage Hauled in the
Fourth Quarter of 2019; 2020 Exploration Focused on Expanding Deep
2 and South Zone Mineral Reserves
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
684
|
|
711
|
Tonnes of ore milled
per day
|
7,435
|
|
7,728
|
Gold grade
(g/t)
|
1.74
|
|
1.49
|
Gold production
(ounces)
|
34,963
|
|
31,508
|
Production costs per
tonne (C$)
|
$
|
44
|
|
$
|
37
|
Minesite costs per
tonne (C$)
|
$
|
43
|
|
$
|
36
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
656
|
|
$
|
625
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
640
|
|
$
|
624
|
Production costs per tonne in the fourth quarter of 2019
increased when compared to the prior-year period due to a higher
cost structure in the South Zone, higher contractor and consumable
costs and lower throughput levels. Production costs per ounce
in the fourth quarter of 2019 increased when compared to the
prior-year period due to the reasons described above, partially
offset by higher gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the fourth quarter of
2019 increased when compared to the prior-year period due to the
reasons described above.
Gold production in the fourth quarter of 2019 increased when
compared to the prior-year period due to higher grades. The
utilization of the Rail-Veyor continues to improve with the best
quarterly performance to-date for hauled tonnage of approximately
6,621 tpd. The lower throughput levels in the fourth quarter
when compared to the prior year period were as a result of
declining production from the M&E zones, which now have smaller
stopes.
Goldex Mine –
Operating Statistics
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
2,785
|
|
2,625
|
Tonnes of ore milled
per day
|
7,630
|
|
7,192
|
Gold grade
(g/t)
|
1.71
|
|
1.54
|
Gold production
(ounces)
|
140,884
|
|
121,167
|
Production costs per
tonne (C$)
|
$
|
39
|
|
$
|
39
|
Minesite costs per
tonne (C$)
|
$
|
39
|
|
$
|
39
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
586
|
|
$
|
648
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
584
|
|
$
|
646
|
Production costs per tonne for the full year 2019 were the same
when compared to the prior-year period. Production costs per
ounce for the full year 2019 decreased when compared to the
prior-year period due to higher gold production.
Minesite costs per tonne for the full year 2019 were the same
when compared to the prior-year period. Total cash costs per
ounce for the full year 2019 decreased when compared to the
prior-year period due to higher gold production.
Gold production for the full year 2019 increased when compared
to the prior-year period due to higher grades and higher throughput
resulting from the higher utilization of the Rail-Veyor
system. A new maintenance bay is expected to
becompleted later this year, which could result in additional
Rail-Veyor capacity.
Mining in the South Zone continued in the fourth quarter of
2019, with a total of 11 stopes mined for the full year 2019.
Stopes mined to date have shown better grades than anticipated and
have confirmed dilution and recovery assumptions. The South
Zone consists of quartz veins that have higher grades than those in
the primary mineralized zones at Goldex. Mining at the South
Zone is expected to average approximately 300 tpd in the first
quarter of 2020, ramping up to 750 tpd in the fourth quarter of
2020 (averaging approximately 500 tpd for the full year
2020). The Company continues to evaluate the potential for
the South Zone to provide additional incremental ore feed to the
Goldex mill.
Drilling at the Deep 2 Zone continued in the fourth quarter of
2019 and continues to focus on areas below the current mineral
reserve limit of Level 130.
Goldex Exploration Focused on Conversion to Mineral Reserves at
Deep 2 and South Zones
The Goldex Deep 1 project (the top part of the Deep
Zone, between 850 and 1,200 metres depth) has been
in production since July 2017. Average daily throughput is
expected to be approximately 6,000 tpd in 2020 as the establishment
of the mining pyramid progresses.
An exploration ramp that began construction in 2018 from
level 120 (1,200 metres depth) continues to extend into the
Deep 2 Zone (the bottom part of the Deep Zone, between
1,200 and 1,800 metres depth). The ramp reached
level 130 (1,300 metres depth) at the end of 2019, and will
continue toward level 140 in 2020.
Following a successful test stope in 2018, the eastern part of
the South Zone was added to the mine plan for 2019 and
2020. Additional stopes were added to the mine plan for 2020
to 2026 based on the successful conversion drilling in 2019
(discussed below). Exploration results from Goldex were last
reported in the Company's news release dated July 25, 2018.
An intensive drilling program included 22,357 metres in the Deep
2 Zone and 45,619 metres in the South Zone in 2019, and was
successful in converting mineral resources into mineral
reserves. The drill intercepts table below includes some of
the results that led to the addition of 264,000 ounces of gold to
the mineral reserves in the South, Deep 2 and Deep 1 zones (before
mining).
These three zones are included in the Goldex mine mineral
resources estimate, which comprises proven and probable mineral
reserves of 1.1 million ounces of gold (21 million tonnes grading
1.61 g/t gold), measured and indicated mineral resources of 2.0
million ounces of gold (39 million tonnes grading 1.60 g/t gold)
and inferred mineral resources of 1.2 million ounces of gold (25
million tonnes grading 1.50 g/t gold) as of December 31, 2019.
Selected 2019 drill results are set out in the table below, and
drill hole collar coordinates are set out in a table in the
Appendix of this news release. Pierce points for all these
holes are shown on the Goldex Composite Longitudinal Section.
All intercepts reported for the Goldex mine show uncapped and
capped gold grades over true widths, based on a current geological
interpretation that is being updated as new information becomes
available with further drilling.
Drill results from the Deep 2 and South zones at the Goldex
mine in 2019
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint below
surface (metres)
|
True width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
GD90-131
|
South
|
172.0
|
175.2
|
969
|
3.2
|
3.9
|
3.9
|
GD90-139
|
South
|
150.0
|
154.5
|
1,009
|
4.5
|
5.9
|
5.9
|
GD95-065
|
South
|
112.5
|
120.0
|
995
|
7.5
|
3.0
|
3.0
|
GD100-172
|
South
|
15
|
19.5
|
987
|
4.5
|
13.7
|
13.7
|
GD100-304
|
South
|
66.0
|
71.9
|
955
|
5.9
|
13.7
|
13.7
|
and
|
South
|
141.0
|
154.5
|
921
|
12.0
|
5.7
|
5.7
|
GD100-318
|
South
|
81.0
|
93.0
|
955
|
10.6
|
19.3
|
6.1
|
GD106-003
|
South
|
9.0
|
25.5
|
1,050
|
16.0
|
3.4
|
3.4
|
GD106-033
|
South
|
42.0
|
45.0
|
1,043
|
3.0
|
8.2
|
8.2
|
GD109-003
|
South
|
55.0
|
60.0
|
1,088
|
4.5
|
7.5
|
7.5
|
GD110-245
|
South
|
172.5
|
178.5
|
1,192
|
5.3
|
4.0
|
4.0
|
GD110-267
|
South
|
51.0
|
57.9
|
1,104
|
4.3
|
4.7
|
4.7
|
GD120-299
|
Deep 2
|
250.5
|
318.0
|
1,256
|
63.0
|
2.1
|
2.1
|
GD120-300
|
Deep 2
|
259.5
|
345.5
|
1,280
|
83.0
|
1.9
|
1.9
|
GD120-313
|
Deep 2
|
351.0
|
418.5
|
1,342
|
62.0
|
1.8
|
1.8
|
GD120-324
|
Deep 2
|
331.5
|
406.5
|
1,326
|
65.0
|
1.8
|
1.8
|
GD120-325
|
Deep 2
|
343.5
|
432.0
|
1,375
|
77.0
|
1.3
|
1.3
|
GD120-331
|
Deep 2
|
282.0
|
357.0
|
1,280
|
64.0
|
1.7
|
1.7
|
GD120-333
|
Deep 2
|
301.5
|
379.5
|
1,332
|
70.0
|
1.2
|
1.2
|
GD120-335
|
Deep 2
|
276.0
|
366.0
|
1,293
|
74.0
|
1.9
|
1.9
|
GD125-003
|
Deep 2
|
376.5
|
441.0
|
1,364
|
52.0
|
2.0
|
2.0
|
GD125-024
|
Deep 2
|
310.5
|
352.5
|
1,386
|
32.0
|
1.7
|
1.7
|
*At Deep 2 Zone, a
capping factor was used for individual assays of 50 g/t gold; the
cut-off grade used was
1.03 g/t
gold. At South Zone, a capping factor was used for individual
assays of 85 g/t gold; the cut-off grade
used was 2.59 g/t
gold.
|
[Goldex Composite Longitudinal Section]
The main target of exploration at Goldex continues to be the
Deep 2 Zone, which is estimated to have probable mineral reserves
of 179,000 ounces of gold (3.4 million tonnes grading 1.63 g/t
gold), indicated mineral resources of 177,000 ounces of gold (4.4
million tonnes grading 1.25 g/t gold) and inferred mineral
resources of 381,000 ounces of gold (10.1 million tonnes grading
1.17 g/t gold) as of December 31,
2019; these mineral reserves and mineral resources are
included in the Goldex mine estimate.
Drilling of the Deep 2 Zone is being done from level 120 and
from the exploration ramp. Recent results include hole
GD125-003 that intersected 2.0 g/t gold over 52.0 metres at 1,364
metres depth and hole GD125-024 that intersected 1.7 g/t gold over
32.0 metres at 1,386 metres depth. This drilling has allowed
for the addition of 2.0 million tonnes grading 1.56 g/t gold
(100,000 ounces of gold) to the mineral reserves in the Deep 2 Zone
between levels 135 and 140.
The second largest target of exploration at Goldex is the South
Zone, which is located in the volcanic rocks south of the Goldex
main deposit. The South Zone gold mineralization is hosted in
multiple quartz-biotite-sulphide veins that have higher grades than
those in the primary mineralized zones at Goldex. Locally,
there are wider mineralized areas. The South Zone is now
estimated to have proven mineral reserves of 4,000 ounces of gold
(31,700 tonnes grading 3.82 g/t gold), probable mineral reserves of
103,000 ounces of gold (1.01 million tonnes grading 3.19 g/t gold),
indicated mineral resources of 43,000 ounces of gold (618,000
tonnes grading 2.14 g/t gold) and inferred mineral resources of
228,000 ounces of gold (2.0 million tonnes grading 3.47 g/t gold)
as of December 31, 2019; these
mineral reserves and mineral resources are included in the Goldex
mine estimate.
In 2019, the Company focused the drilling between 900 metres and
1,300 metres depth from the Deep 1 Zone on levels 90 to 120, and
from the exploration ramp. Recent results include hole
GD100-172 that intersected 13.7 g/t gold over 4.5 metres at 987
metres depth and hole GD110-245 that intersected 4.0 g/t gold over
5.3 metres at 1,192 metres depth. Other recent drilling
included examples of localized wider mineralized areas such as hole
GD100‑304 that intersected 5.7 g/t gold over 12.0 metres at 921
metres depth, hole GD100-318 that intersected 6.1 g/t gold over
10.6 metres at 955 metres depth and hole GD106-003 that intersected
3.4 g/t gold over 16.0 metres at 1,050 metres depth. This
drilling has allowed for the addition of 1.1 million tonnes grading
3.18 g/t gold (110,000 ounces of gold) to the mineral reserves in
the South Zone.
The 2020 Goldex capitalized exploration program is budgeted for
$6.4 million, including 32,000
metres of drilling focused on the MMx, Deep 2 and South zones and
44,000 metres of conversion drilling focused on the Deep 1, Deep 2
and South zones. Finally, the expensed exploration program in
2020 is budgeted for $0.5
million, including 3,000 metres of drilling focussed in
the deepest part of the Deep 2 Zone (between 1,500 and 1,800 metres
depth).
Kirkland Lake Project – 2019 Drilling Focused on Converting
and Expanding Mineral Resources at Upper Beaver and Upper Canada
Deposits
The Kirkland Lake project in
northeastern Ontario covers
approximately 25,506 hectares (approximately 35 kilometres long by
17 kilometres wide).
The exploration drill program in the fourth quarter comprised
1,054 metres (three holes) focused on testing deeper exploration
targets within the mineralized zones at Upper Canada. The total drilling at the
Kirkland Lake project in 2019 was
40,693 metres (103 holes) comprised of 27,010 metres (73 holes) at
the Upper Beaver deposit and 13,683 metres (30 holes) at the
Upper Canada deposit.
The Company is still investigating various opportunities and
potential synergies in terms of engineering concepts for future
development of the Upper Beaver and Upper
Canada deposits.
Selected recent intercepts from the Kirkland Lake project are set out in the table
below. The drill hole collar coordinates are set out in a
table in the Appendix of this news release. The drill hole
collars are located on the Kirkland Lake Projects – Upper Beaver
and Upper Canada Local Geology Map. All intercepts reported
for the Kirkland Lake project show
uncapped and capped grades over estimated true widths, based on a
preliminary geological interpretation that is being updated as new
information becomes available with further drilling.
Selected recent exploration drill results from the Upper
Beaver (UB) deposit and Upper
Canada (UC) deposits at the Kirkland Lake project
Drill hole
|
Deposit
|
From
(metres)
|
To
(metres)
|
Depth of
mid-point
below
surface
(metres)
|
Estimated
true width
(metres)*
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)**
|
Copper
grade (%)
(uncapped)
|
KLUB19-525
|
UB, Shallow
Basalts
|
84.0
|
90.0
|
68
|
5.4
|
11.9
|
6.7
|
0.10
|
and
|
UB, Shallow
Basalts
|
106.3
|
112.0
|
85
|
4.9
|
9.1
|
9.1
|
0.06
|
and
|
UB, Shallow
Basalts
|
117.0
|
126.0
|
95
|
7.4
|
7.1
|
7.1
|
0.00
|
KLUB19-530
|
UB, Shallow
Basalts
|
16.5
|
31.0
|
17
|
10.3
|
3.0
|
3.0
|
0.11
|
and
|
UB, Shallow
Basalts
|
122.3
|
131.8
|
92
|
7.8
|
3.0
|
3.0
|
0.13
|
and
|
UB, Shallow
Basalts
|
153.0
|
172.0
|
118
|
16.5
|
5.5
|
5.5
|
0.30
|
including
|
UB, Shallow
Basalts
|
154.0
|
159.5
|
114
|
4.8
|
14.8
|
14.8
|
0.46
|
KLUB19-549
|
UB, Shallow
Basalts
|
103.4
|
108.0
|
96
|
3.3
|
3.5
|
3.5
|
0.88
|
and
|
UB, Shallow
Basalts
|
132.0
|
136.0
|
122
|
3.3
|
6.6
|
6.6
|
1.36
|
and
|
UB, Shallow
Basalts
|
152.5
|
157.3
|
141
|
3.4
|
3.8
|
3.8
|
0.20
|
and
|
UB, Shallow
Basalts
|
188.0
|
193.0
|
174
|
4.3
|
5.7
|
5.7
|
0.21
|
KLUB19-552
|
UB, Shallow
Basalts
|
295.0
|
299.5
|
260
|
3.4
|
5.3
|
5.3
|
0.01
|
and
|
UB, Shallow
Basalts
|
479.5
|
483.3
|
419
|
2.9
|
4.2
|
4.2
|
1.60
|
KLUB19-554
|
UB, Shallow
Basalts
|
139.0
|
143.0
|
120
|
3.6
|
6.4
|
6.4
|
0.20
|
and
|
UB, Shallow
Basalts
|
283.5
|
291.0
|
244
|
5.3
|
5.6
|
5.6
|
1.34
|
KLUC19-535
|
UC, Northland
Zone
|
145.0
|
177.5
|
124
|
24.7
|
1.4
|
0.9
|
|
KLUC19-538
|
UC, C Zone
|
451.5
|
456.0
|
381
|
3.6
|
6.0
|
6.0
|
|
KLUC19-541
|
UC, Northland
Zone
|
157.5
|
197.0
|
124
|
27.7
|
1.4
|
1.4
|
|
KLUC19-542
|
UC, Northland
Zone
|
406.0
|
429.1
|
294
|
16.2
|
1.5
|
1.5
|
|
KLUC19-546
|
UC, C Zone
|
486.0
|
493.5
|
428
|
3.8
|
4.1
|
4.1
|
|
KLUC19-547
|
UC, Brock
Zone
|
477.3
|
481.5
|
405
|
3.4
|
4.4
|
4.4
|
|
KLUC19-551
|
UC, B Zone
|
230.3
|
235.7
|
190
|
3.2
|
3.8
|
3.8
|
|
KLUC19-552
|
UC, MQ
Zone
|
472.0
|
508.5
|
387
|
24.5
|
1.2
|
1.2
|
|
and
|
UC, MQ
Zone
|
516.1
|
521.0
|
409
|
3.3
|
12.8
|
12.8
|
|
KLUC19-553
|
UC, Lower L
zone
|
832.0
|
844.0
|
761
|
6.0
|
2.6
|
2.6
|
|
*Estimated true
width values are preliminary.
|
**Holes in the
shallow basalts at the Upper Beaver deposit use a capping factor of
30 g/t gold. The capping factors used for
holes at the Upper
Canada deposit are as follows: Northland Zone (10 g/t gold), B Zone
(60 g/t gold), C Zone (45 g/t gold),
MQ Zone (30 g/t
gold), Brock Zone (15 g/t gold) and Lower L Zone (170 g/t
gold).
|
[Kirkland Lake Projects – Upper Beaver / Upper Canada Local
Geology Map]
The Upper Beaver deposit is atypical of the Kirkland Lake district. Gold-copper
mineralization is mainly hosted in the Upper Beaver alkalic
intrusive complex and surrounding basalts it intruded, and is
associated with disseminated pyrite and chalcopyrite, and
magnetite-sulphide veining associated with strong
magmatic-hydrothermal alteration. The mineralization occurs
as elongated tabular bodies that strike northeast, dip steeply
northwest and plunge 65 degrees to the northeast. The
mineralization has been defined along a 400-metre strike length
from surface to a depth of 2,000 metres. Results from the
Upper Beaver deposit were last reported in the Company's news
release dated October 23, 2019.
Probable mineral reserves of 8.0 million tonnes grading 5.43 g/t
gold (1.4 million ounces of gold) at underground depths have been
outlined on the Upper Beaver property as of December 31, 2019, as well as substantial
indicated and inferred mineral resources.
The recent drilling program at Upper Beaver targeted mineral
resource conversion and extension in the portion of the deposit
hosted in basalts from near-surface down to a depth of 400 metres,
where multiple stacked zones of quartz and quartz-carbonate veining
containing variable proportions of magnetite, chalcopyrite and
molybdenite host the gold mineralization.
Recent results confirm the potential to increase inferred
mineral resources or convert them to indicated mineral resources in
Upper Beaver's shallow basalts. The results continue to
display both high-grade, narrow intervals and broader zones of
medium-grade mineralization. Multiple drill holes intersected
copper-gold mineralization in more than one significant mineralized
zone, showing the density of stacked mineralized structures in the
shallow basalts.
There were positive conversion results at shallower depths
within the inferred mineral resources, as demonstrated by the
following intercepts. Hole KLUB19-525 intersected multiple
gold intervals, including 6.7 g/t gold and 0.10% copper over 5.4
metres at 68 metres depth, 9.1 g/t gold and 0.06% copper over 4.9
metres at 85 metres depth and 7.1 g/t gold over 7.4 metres at 95
metres depth. Approximately 100 metres to the north, hole
KLUB19-530 intersected 3.0 g/t gold and 0.11% copper over 10.3
metres at 17 metres depth, 3.0 g/t gold and 0.13% copper over 7.8
metres at 92 metres depth and 5.5 g/t gold and 0.30% copper over
16.5 metres at 118 metres depth (including 14.8 g/t gold and 0.46%
copper over 4.8 metres). Hole KLUB19-549, located
approximately 60 metres southwest of hole KLUB19-525, also
confirmed the model and intersected 3.5 g/t gold and 0.88% copper
over 3.3 metres at 96 metres depth, 6.6 g/t gold and 1.36% copper
over 3.3 metres at 122 metres depth, 3.8 g/t gold and 0.20% copper
over 3.4 metres at 141 metres depth and 5.7 g/t gold and 0.21%
copper over 4.3 metres at 174 metres depth.
The Company is undertaking work at Upper Beaver that is expected
to lead to an updated mineral resource estimate for the deposit at
year-end 2020. An increase in the mineral resources in the
shallow basalts would have a significant positive impact on project
economics, and could provide added flexibility for a future
underground operation.
The Upper Canada deposit lies
approximately six kilometres southwest of the Upper Beaver
deposit, within a 300- to 400-metre-wide strongly altered
deformation corridor. Gold mineralization is associated with
intensely altered shear zones with fine pyrite and ancillary
sulphide mineralization. Results from Upper Canada were last reported in the
Company's news release dated April 25,
2019.
Recent drilling investigated the western side of Upper Canada where significant results were
identified north of the C Zone. These results include hole
KLUC19-538, approximately 150 metres north of the C
Zone, that intersected 6.0 g/t gold over 3.6 metres at 381
metres depth. This area requires additional exploration.
Approximately 750 metres north of the C Zone is the Northland
Zone area where recent drilling has identified the potential for
near-surface, low-grade mineralization. Positive results were
obtained in hole KLUC19-541 that intersected 1.4 g/t gold over 27.7
metres at 124 metres depth. Four hundred and fifty metres to
the west, hole KLUC19-542 intersected 1.5 g/t gold over 16.2 metres
at 294 metres depth. As a result of this drilling, the strike
length of the Northland Zone's broad mineralized horizon has been
extended to more than 650 metres (a 400-metre increase), with the
depth increased by 120 metres to 294 metres; the Northland Zone
remains open laterally and at depth.
The main Upper Canada deposit
also returned interesting results this quarter. Two distinct
gold intercepts in the MQ Zone were encountered in hole KLUC19-552
supporting possible mineral resource extension, including 1.2 g/t
gold over 24.5 metres at 387 metres depth and 12.8 g/t gold over
3.3 metres at 409 metres depth.
Work at Upper Canada included
validating all historic information, leading to a reinterpretation
of the entire deposit and updating all cost assumptions of the open
pit and underground portions of the deposit. The open pit
mineral resources are found mainly in the Northland, Upper L, H and
MQ zones, while the main zones supporting the underground mineral
resources are the Upper L, Lower L, C and B zones.
The 2019 program has led to the conversion of inferred mineral
resources into an initial indicated mineral resource, and the
replacement of those converted inferred mineral resources. As
of December 31, 2019, Upper Canada has an initial indicated mineral
resource of 9.7 million tonnes grading 2.23 g/t gold (693,000
ounces of gold) at open pit and underground depths. The
inferred mineral resources for Upper
Canada have been maintained at approximately 17 million
tonnes grading 3.22 g/t gold (1.8 million ounces of gold) at open
pit and underground depths. More details can be found in the
Mineral Resources section of this news release.
NUNAVUT REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's Meliadine mine and Meadowbank Complex (including the
Amaruq satellite deposit at Meadowbank) and other exploration
projects, Nunavut has the
potential to be a strategic operating platform with the ability to
generate strong gold production and cash flows over several
decades.
Meadowbank Complex – Actions Underway to Address Key Ramp Up
Issues; Stronger Operational Performance Expected by the Second
Quarter of 2020; First Underground Mineral Reserves Declared at
Amaruq
The 100% owned Meadowbank Complex is located approximately 110
kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The complex consists of
the Meadowbank mine and mill, and the Amaruq satellite deposit,
which is located 50 kilometres northwest of the Meadowbank
mine. The Meadowbank mine achieved commercial production in
March 2010, and most mining
activities were completed in the fourth quarter of 2019.
The Amaruq mining operation uses the existing infrastructure at
the Meadowbank mine (mining equipment, mill, tailings, camp and
airstrip). Additional infrastructure has been built at the
Amaruq site (truck shop/warehouse, fuel storage and an additional
camp facility). Amaruq ore is transported using long haul
off-road type trucks to the mill at the Meadowbank site for
processing. The Amaruq satellite deposit achieved commercial
production on September 30, 2019.
Meadowbank Complex
– Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
709
|
|
700
|
Tonnes of ore milled
per day
|
7,707
|
|
7,609
|
Gold grade
(g/t)
|
2.95
|
|
2.80
|
Gold production
(ounces)
|
61,660
|
|
59,664
|
Production costs per
tonne (C$)
|
$
|
143
|
|
$
|
82
|
Minesite costs per
tonne (C$)
|
$
|
162
|
|
$
|
83
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
1,243
|
|
$
|
743
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
1,405
|
|
$
|
734
|
Production costs per tonne in the fourth quarter of 2019
increased when compared to the prior-year period primarily due to
increased costs associated with stripping and lower
productivity. Production costs per ounce in the fourth
quarter of 2019 increased when compared to the prior-year period
due to the reasons described above, partially offset by higher gold
production.
Minesite costs per tonne in the fourth quarter of 2019 increased
when compared to the prior-year period primarily due to increased
costs associated with stripping and lower productivity. Total
cash costs per ounce in the fourth quarter of 2019 increased when
compared to the prior-year period due to the reasons described
above, partially offset by higher gold production.
Gold production in the fourth quarter of 2019 increased when
compared to the prior-year period due to higher throughput and
grades from Amaruq. The fourth quarter of 2019 was Amaruq's
first full quarter of production. In addition. mining at the
Portage pit at Meadowbank continued until October and ore from the
stockpile at Meadowbank was also processed in the fourth quarter of
2019.
Meadowbank Complex
– Operating Statistics
|
|
|
|
All metrics
exclude pre-production tonnes and ounces
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
2,381
|
|
3,262
|
Tonnes of ore milled
per day
|
7,731
|
|
8,937
|
Gold grade
(g/t)
|
2.23
|
|
2.56
|
Gold production
(ounces)
|
158,208
|
|
248,997
|
Production costs per
tonne (C$)
|
$
|
101
|
|
$
|
83
|
Minesite costs per
tonne (C$)
|
$
|
103
|
|
$
|
82
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
1,143
|
|
$
|
848
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
1,152
|
|
$
|
814
|
Production costs per tonne for the full year 2019 increased when
compared to the prior-year period primarily due to increased costs
associated with stripping and lower productivity.
Production costs per ounce for the full year 2019 increased when
compared to the prior-year period due to the reasons described
above and lower gold production. Pre-commercial production in
2019 was 35,281 ounces of gold.
Minesite costs per tonne for the full year 2019 increased when
compared to the prior-year period primarily due to increased costs
associated with stripping and lower productivity. Total cash
costs per ounce for the full year 2019 increased when compared to
the prior-year period due to the reasons described above and lower
gold production.
Gold production for the full year 2019 decreased when compared
to the prior-year period as expected due to anticipated lower
grades from the processing of the marginal ore stockpile at
Meadowbank as the mine transitioned through the last few months of
mining at the Meadowbank site.
The ramp up of production activities at Amaruq continued to
improve but remained slower than expected in the fourth quarter of
2019. The ramp up was impacted by previous delays in pit
dewatering, which resulted in a smaller than expected area for
mining activities. This smaller "mining footprint" limited
access to certain portions of the Whale Tail deposit, resulting in
lower tonnage, lower grades and higher stripping costs. In
addition, mining productivity was also affected by lower than
expected equipment availability as well as a longer than expected
transition between the new Amaruq site with regards to site
installations and internal workforce movements into new
positions.
Although it is still early in the year, good progress is being
made on a number of fronts and the Company is focused on ramping up
operating parameters to targeted levels by the middle of the second
quarter of 2020. Key Amaruq operating parameters for the
fourth quarter of 2019, 2020 year-to-date and 2020 targets are
presented in the table below.
|
|
|
|
Operating
Parameters
|
Fourth
Quarter of
2019
|
2020
Year-to-date
|
2020
Target
|
Broken rock inventory
(t)
|
920,000
|
1,150,000
|
1,200,000
|
Daily drill
(m/d)
|
1,330
|
1,546
|
1,986
|
Total tonnes moved
(tpd)
|
71,105
|
78,491
|
99,415
|
Ore mined
(tpd)
|
5,430
|
5,783
|
8,645
|
Stripping
ratio
|
12.1
|
12.6
|
10.5
|
Long Haul ore moved
(tpd)
|
5,442
|
6,775
|
8,700
|
Mill tonnage
(tpd)
|
7,708
|
7,277
|
8,664
|
Amaruq Optimization Plan – Actions to Lower Costs and Improve
Productivity
In order to optimize production and lower operating costs at
Amaruq, an action plan has been put in place with a primary focus
on improvements to water management, equipment
availability, operational performance and wildlife management
protocols.
Water management
De-watering of Whale Tail North was completed in October 2019 following the installation of
additional pumping capacity to handle the larger than expected
water inflows. Construction activity as well as a grouting
program to reduce water inflows at the interface between the
bedrock and Whale Tail dyke are also underway to reduce the
quantity of water to manage during the 2020 freshet (spring
melt). These efforts have allowed access to the Whale Tail
North Lake bed area and expanded the footprint of the Whale Tail
pit while reducing water management risks for 2020.
Equipment Availability (Maintenance)
Mining equipment availability and maintenance was affected by
the transition of operations from the Meadowbank to the Amaruq site
including the camp capacity, workforce movements, parts management
and garage availability. At the end of the fourth quarter of
2019, most of the above issues have been addressed. All
supervisory and management positions have been filled, along with
additional workforce personnel to reduce backlogs.
The new warehouse was completed at Amaruq in January 2020, and material is now being
transferred from Meadowbank to improve access to parts and reduce
delivery time. Internal processes are also being reviewed and
optimized in order to improve maintenance performance and equipment
availability.
Operational Performance
Following the slower than planned ramp up in the fourth quarter
of 2019, several initiatives were launched to improve mine
operations performance. All mine management positions are now
filled and improvement initiatives have been initiated to
accelerate ramp up. In parallel to this, additional
continuous improvement capacity is currently being added.
Continuous improvement initiatives will continue focusing on
drilling, loading and hauling (including long hauls) in order to
increase the mining rate and reduce operating costs.
Wildlife Management
In the fourth quarter of 2019, stakeholder approval was sought
for the concept of "project tolerant caribou" to minimize
unnecessary road closures. The concept of "project tolerant
caribou" was part of the Terrestrial Environment Management Plan
submitted to the authorities as part of the permitting
process. This concept was discussed and agreed to at the
Terrestrial Advisory Group meeting in the fall of 2019.
Wildlife management (especially caribou) is an important priority
and the Company continues to work with Nunavut stakeholders to find the best
solutions to safeguard wildlife while minimizing production
disruptions.
The current long haul truck fleet totals 22 units. In
addition, three contractor units are available as back up. As
noted above, work will continue in 2020 to further improve
mechanical and utilization availability and productivity.
Based on the proposed optimization plan, production and costs
are forecast to improve sequentially quarter-over-quarter through
2020. The first quarter of 2020 is expected to be the weakest
quarter for gold production. Average annual gold production
at Amaruq over its seven year mine life is currently forecast to be
approximately 443,000 ounces at an average total cash cost per
ounce of $820.
The permitting process to amend the Whale Tail project
certificate (Nunavut Impact Review Board (NIRB) process) and Type A
Water Licence (Nunavut Water Board (NWB) process) to include the
Amaruq Phase 2 expansion is ongoing. As part of this process,
the NIRB held public hearings on the proposed expansion from
August 26 to 29, 2019 in Baker
Lake. In a decision issued on October
18, the NIRB concluded that if conducted in accordance with
the NIRB's recommendations, this proposed amendment to the Whale
Tail project could proceed to the Type A Water License amendment
phase with the NWB. The Minister of Northern Affairs approved
the amended Project Certificate Report from the NIRB (October 18 decision) on January 20, 2020, completing the NIRB
process. The NWB water licence amendment process has been
ongoing and public hearings are occurring on February 12-13, 2020. It is expected that
the Amaruq Phase 2 permitting will be completed in the third
quarter of 2020.
First Underground Mineral Reserves at Whale Tail; Exploration
Expands Mineralized Zones at Depth
As of December 31, 2019, mineral
reserves at Amaruq have increased 15% year-over-year to
approximately 3.3 million ounces of gold, divided between open-pit
proven and probable mineral reserves of approximately 2.7 million
ounces of gold (22.8 million tonnes grading 3.74 g/t gold) in the
Whale Tail deposit and V Zone, and initial underground probable
mineral reserves in the Whale Tail deposit of approximately 577,000
ounces of gold (3.3 million tonnes grading 5.43 g/t gold).
Amaruq's combined underground and open-pit indicated mineral
resources (excluding Meadowbank) are approximately 1.1 million
ounces of gold (9.8 million tonnes grading 3.40 g/t gold), while
combined underground and open-pit inferred mineral resources
(excluding Meadowbank) are 1.5 million ounces of gold (8.6 million
tonnes grading 5.47 g/t gold) as of December
31, 2019. More details are available in the Mineral
Reserves and Mineral Resources sections of this news release.
During the fourth quarter of 2019, up to five drill rigs were in
operation at Amaruq, including one rig operating underground since
late June from the exploration ramp, which continues to be
extended. At the end of the fourth quarter, the exploration
ramp had reached a depth of 255 metres below surface and a ramp
distance of 1,891 metres from the portal.
During the fourth quarter, exploration drilling consisted of two
holes (1,275 metres) and conversion drilling consisted of 14 holes
(4,766 metres). For all of 2019, exploration drilling totaled
52 holes (16,136 metres) and conversion drilling totaled 86 holes
(35,593 metres). Results of the exploration program at the
Amaruq project were last reported in the Company's news release
dated July 24, 2019.
Selected recent intercepts from the Amaruq project are set out
in the table below. The drill hole collars are located on the
Amaruq Project Local Geology Map. The pierce points are shown
on the Amaruq Project Composite Longitudinal Section. All
intercepts reported for the Amaruq project show uncapped and capped
gold grades over estimated true widths, based on a preliminary
geological interpretation that is being updated as new information
becomes available with further drilling.
Selected recent exploration and conversion drill results from
the Whale Tail (WT) deposit and V Zone at the Amaruq
project
Drill
hole
|
Zone
|
Purpose
|
From
(metres)
|
To
(metres)
|
Depth of
mid-point
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
AMQ-170-006A
|
WT
|
Conversion
|
370.5
|
382.3
|
429
|
11.1
|
7.7
|
7.7
|
AMQ-170-008A
|
WT North
|
Conversion
|
509.9
|
514.6
|
561
|
3.6
|
24.4
|
24.4
|
and
|
WT North
|
Conversion
|
528.6
|
531.7
|
576
|
2.8
|
32.7
|
29.6
|
AMQ19-2064B
|
WT
|
Exploration
|
660.1
|
664.8
|
544
|
4.3
|
12.7
|
12.7
|
AMQ19-2067B
|
V Zone
|
Conversion
|
714.0
|
724.0
|
607
|
8.2
|
12.3
|
12.3
|
AMQ19-2069
|
WT
|
Conversion
|
445.5
|
469.8
|
349
|
23.9
|
9.5
|
9.5
|
including
|
|
|
460.5
|
469.8
|
354
|
9.2
|
16.8
|
16.8
|
AMQ19-2075
|
V Zone
|
Conversion
|
509.1
|
513.3
|
451
|
4.1
|
14.1
|
14.1
|
and
|
V Zone
|
Conversion
|
533.0
|
541.5
|
473
|
8.0
|
10.5
|
10.5
|
AMQ19-2080B
|
V Zone
|
Conversion
|
627.0
|
630.0
|
562
|
2.8
|
18.3
|
12.2
|
and
|
V Zone
|
Conversion
|
649.0
|
653.0
|
582
|
3.5
|
62.1
|
29.4
|
AMQ19-2087
|
V Zone
|
Conversion
|
475.2
|
478.5
|
398
|
3.2
|
58.4
|
31.8
|
AMQ19-2098A
|
WT North
|
Exploration
|
785.9
|
795.7
|
660
|
6.9
|
6.7
|
6.7
|
AMQ19-2099
|
V Zone
|
Conversion
|
630.7
|
634.9
|
549
|
3.6
|
64.3
|
24.7
|
and
|
V Zone
|
Conversion
|
744.0
|
748.0
|
647
|
3.5
|
36.2
|
18.2
|
AMQ19-2101
|
WT
|
Conversion
|
415.0
|
434.5
|
294
|
16.0
|
7.9
|
7.9
|
AMQ19-2101A
|
WT
|
Conversion
|
425.5
|
441.7
|
301
|
14.7
|
10.9
|
10.9
|
AMQ19-2106
|
V Zone
|
Exploration
|
633.5
|
637.0
|
537
|
3.2
|
16.8
|
9.6
|
AMQ19-2107
|
V Zone
|
Conversion
|
484.7
|
488.8
|
424
|
3.6
|
44.2
|
29.6
|
AMQ19-2111B
|
V Zone
|
Conversion
|
593.3
|
596.6
|
517
|
2.9
|
70.6
|
41.9
|
and
|
V Zone
|
Conversion
|
647.5
|
651.8
|
565
|
3.7
|
10.3
|
10.3
|
and
|
V Zone
|
Conversion
|
749.5
|
753.5
|
656
|
3.6
|
11.4
|
11.4
|
and
|
V Zone
|
Conversion
|
761.9
|
770.1
|
669
|
7.4
|
6.6
|
6.6
|
*Holes at the
Whale Tail and Whale Tail North use a capping factor of 80 g/t
gold. Holes at V Zone use a capping factor of 60 g/t
gold.
|
[Amaruq Project – Local Geology Map]
[Amaruq Project – Composite Longitudinal Section]
The Whale Tail deposit has been defined over at least 2.3
kilometres of strike length and from surface to 915 metres
depth.
The conversion drilling program continues to demonstrate the
extension of high-grade mineralization below the proposed pit
outline, while the level of confidence in the geological model
continues to improve.
Drilling into the central-eastern portion of Whale Tail
continues to yield good grades over significant thicknesses, with
highlights such as hole AMQ19-2101A intersecting 10.9 g/t gold over
14.7 metres at 301 metres depth.
Drilling in the Whale Tail ore shoot continues to yield positive
results. Hole AMQ19-2069 intersected 16.8 g/t gold over 9.2
metres at 354 metres depth and hole AMQ-170-006A intersected 7.7
g/t gold over 11.1 metres at 429 metres depth, confirming the
thickness and grade of the inflection in the ore shoot. Hole
AMQ19-2064B intersected 12.7 g/t gold
over 4.3 metres at 544 metres depth, demonstrating a potential
for the development of new mineral resources down plunge in the ore
shoot at depth.
Hole AMQ19-2106 was drilled into a gap between Whale Tail and
the V Zone and intersected 9.6 g/t gold over 3.2 metres at 537
metres depth. This intercept is typical of V Zone
mineralization but is observed at the stratigraphic contact typical
of the Whale Tail mineralization, demonstrating mineral resource
potential between the two deposits.
Drilling from the exploration ramp into the Whale Tail North
Zone, below the existing mineral resources in the eastern part of
Whale Tail, hole AMQ-170-008A intersected 24.4 g/t gold over 3.6
metres at 561 metres depth and 29.6 g/t gold over 2.8 metres at 576
metres depth. Approximately 240 metres to the east, hole
AMQ19-2098A intersected Whale Tail North yielding 6.7 g/t gold over
6.9 metres at 660 metres depth. This is in an area well away
from current mineral resources, showing the potential for the
development of new mineral resources approximately 100 metres north
of the Whale Tail underground mineral resources at depth.
The Whale Tail deposit remains open to the west at depth, and to
the east along a shallow plunge corresponding to the main ore
shoot. A small portion of Amaruq's current mineral reserves
and mineral resources are in the Whale Tail North structure.
V Zone – Drilling Extends Ore Shoot at Depth
The V Zone consists of a series of parallel, stacked mineralized
structures striking northeast from near surface to as deep as 707
metres below surface. The dip of the structures is
approximately 30 degrees near surface, and steepens to 60 to 70
degrees at depth, where there are at least two sub-parallel
structures. The V Zone ore shoot is a mineralized corridor
100 to 300 metres wide plunging shallowly to the northeast and
extending from approximately 350 metres to more than 700 metres
depth. In the third and fourth quarters of 2019, conversion
and exploration drilling continued to return positive results along
the interpreted V Zone ore shoot.
In the western part of the V Zone, hole AMQ19-2107 intersected
29.6 g/t over 3.6 metres at 424 metres depth. This hole and
others in the area have the potential to expand mineral resources
outside of the previous inferred mineral resource limit and convert
other mineral resource horizons.
Recent drilling has helped to convert mineral resources in the
central part of the V Zone, confirming the grades and thicknesses
of the many parallel layers of mineralization between 400 and 600
metres depth. Examples include hole AMQ19-2087 that
intersected 31.8 g/t gold over 3.2 metres at 398 metres depth, hole
AMQ19-2075 that intersected 14.1 g/t gold over 4.1 metres at 451
metres depth and 10.5 g/t gold over 8.0 metres at 473 metres depth,
hole AMQ19-2080B that intersected
29.4 g/t gold over 3.5 metres at 582 metres depth and hole
AMQ19-2067B that intersected 12.3 g/t
gold over 8.2 metres at 607 metres depth.
Toward the west of the V Zone ore shoot at depth, hole
AMQ19-2111B had four intercepts: 41.9
g/t gold over 2.9 metres at 517 metres depth, 10.3 g/t gold over
3.7 metres at 565 metres depth, 11.4 g/t gold over 3.6 metres at
656 metres depth and 6.6 g/t gold over 7.4 metres at 669 metres
depth. These last two intercepts added mineral resources in
the deepest part of the V Zone's western limits.
Approximately 50 metres to the east, hole AMQ19-2099 intersected
24.7 g/t gold over 3.6 metres at 549 metres depth and 18.2 g/t gold
over 3.5 metres at 647 metres depth. All these holes confirm
the high grades seen in the multiple-layered mineral resources at
depth.
The V Zone ore shoot remains open at depth and laterally
down-plunge to the east along the favourable folded contact between
volcanic and sedimentary rocks.
In 2020, at the Amaruq deposit at the Meadowbank Complex, the
Company expects to spend $2.9 million
for 8,400 metres of exploration drilling to test regional targets
with a focus on open-pit potential. Drilling will also test
the vertical extensions of near surface mineral occurrences at
Mammoth Lake.
Another $2.0 million is budgeted for
5,500 metres of exploration drilling on other properties around
Amaruq to test near surface open-pit targets close to existing road
infrastructure between Amaruq and Baker
Lake.
Update on Amaruq Underground Project
At December 31, 2019, the Company
reported an initial underground probable mineral reserve in the
Whale Tail deposit of approximately 577,000 ounces of gold (3.3
million tonnes grading 5.43 g/t gold). Work is continuing at
Amaruq to evaluate the potential for an underground operation,
which could run concurrently with mining the open pit
deposits. Preliminary work suggests that there is an
opportunity to selectively mine portions of the higher-grade
underground deposits at Amaruq in permafrost only. This
approach is expected to reduce operating and capital costs (limited
heating requirements) and lower water management risk, while
preserving the optionality to mine additional underground mineral
reserves and/or mineral resources.
The Company believes that it is possible that underground
production could begin in 2022 and run through 2026. Initial
annual gold production could be at a rate of approximately 50,000
to 60,000 ounces, and average approximately 110,000 ounces per year
over the life of mine. Additional work is being carried out
to evaluate the potential to increase mineral reserves and exploit
a portion of the underground mineral resources at both Whale Tail
and V Zone. A more detailed project evaluation is expected to
be completed before year-end. The Company will continue to
use a phased approach to the underground development program at
Amaruq in 2020.
Meliadine Mine – Mine Optimization Continues; Phase 2
Expansion Underway
Located near Rankin Inlet, Nunavut,
Canada, the Meliadine project was acquired in July 2010 and is Agnico Eagle's largest gold
deposit in terms of mineral resources. The Company owns 100%
of the 111,358-hectare property. In February 2017, the Company's Board of Directors
approved the construction of the Meliadine project.
Commercial production was declared on May
14, 2019.
Meliadine Mine –
Operating Statistics
|
|
|
Three Months
Ended
|
|
December 31,
2019
|
Tonnes of ore milled
(thousands of tonnes)
|
326
|
Tonnes of ore milled
per day
|
3,543
|
Gold grade
(g/t)
|
7.99
|
Gold production
(ounces)
|
81,607
|
Production costs per
tonne (C$)
|
$
|
241
|
Minesite costs per
tonne (C$)
|
$
|
237
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
731
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
712
|
Production costs per tonne in the fourth quarter of 2019 were
C$241. Production costs per
ounce in the fourth quarter of 2019 were $731. Minesite costs per tonne in the
fourth quarter of 2019 were C$237. Total cash costs per ounce in the
fourth quarter of 2019 were $712. Gold production in the fourth quarter
of 2019 was 81,607 ounces of gold.
Meliadine Mine –
Operating Statistics
|
|
All metrics
exclude pre-production tonnes and ounces
|
Year
Ended
|
|
December 31,
2019
|
Tonnes of ore milled
(thousands of tonnes)
|
773
|
Tonnes of ore milled
per day
|
3,346
|
Gold grade
(g/t)
|
7.60
|
Gold production
(ounces)
|
191,113
|
Production costs per
tonne (C$)
|
$
|
244
|
Minesite costs per
tonne (C$)
|
$
|
246
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
748
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
748
|
Production costs per tonne for the full year 2019 were
C$244. Production costs per
ounce for the full year 2019 were $748. Minesite costs per tonne for the full
year 2019 were C$246. Total
cash costs per ounce for the full year 2019 were $748. Gold production for the full year
2019 was 191,113 ounces of gold excluding pre-commercial
production. Pre-commercial production in 2019 was 47,281
ounces of gold.
In the fourth quarter of 2019, lateral development, stope
mucking and production drilling performance improved steadily,
reaching budgeted levels in December. This performance
resulted in approximately 3,983 tpd of ore being mined from the
underground in December 2019. This was a significant
improvement over the ore tonnes mined in the third quarter of
2019.
In 2019, the Meliadine mill demonstrated the ability to exceed
nameplate capacity (3,750 tpd), with maximum daily throughput
reaching up to 4,950 tpd. In the fourth quarter of 2019, the
processing plant averaged approximately 3,543 tpd, with average
recoveries of 94.6%. Bottlenecks at the front end of the
crushing circuit and wear issues with the apron feeder hampered
maximization of throughput in the mill in the fourth quarter of
2019.
Optimization Program – Primarily Focused On Improvements to the
Process Plant Area and Increasing Mining Flexibility
In order to optimize production and lower operating costs at
Meliadine, an action plan has been put in place with a primary
focus on improvements to the process plant area, improving mining
flexibility and water management, which includes:
- Apron feeder and chute re-engineering to correct wear issues
(in progress)
- Filter press corrosion mitigation (nearing completion)
- Paste backfill capacity
optimization (in progress)
- Underground maintenance continuous improvement, focus on trucks
and scoops (in progress)
- Phase 2 expansion acceleration, development of Tiriganiaq open
pits (in progress)
- Saline water line discharge to sea (evaluation underway)
The current Meliadine water management plan includes segregation
of underground de-watering and surface runoff waters in specific
ponds, treatment and year-around discharge to Meliadine Lake or
seasonal discharge to sea (Hudson
Bay) depending on the type of water. One of the
objectives of the water management plan is to minimize the volume
of water in the water containment infrastructures prior to the
freshet (spring melt). In 2019, the total dissolved solids
(TDS) in the runoff water pond was higher than predicted and the
volume of water that could be discharged within the prescribed TDS
limit was reduced. This water was subjected to a series of
tests and was deemed non-toxic. The Company is in discussion
with the regulatory agencies to modify the discharge criteria and
allow flexibility for the mine to manage precipitation variations
and spring freshet (snow melt) while preserving the integrity of
water containment infrastructures and protecting aquatic life.
While discharge to sea is currently done by trucks, the Company is
investigating the possibility of installing a permanent
waterline. This is expected to reduce costs and the
environmental impact of trucking. Consultations are currently
underway with local stakeholders and regulatory agencies and the
permitting process for this change is expected to start in the
second quarter of 2020.
Based on the optimization plan outlined above, production and costs
are expected to improve at Meliadine in 2020 on a quarter over
quarter basis. The first quarter of 2020 is expected to be
the weakest quarter for gold production. Life of mine average
annual gold production at Meliadine is currently forecast to be
approximately 400,000 ounces at an average total cash cost per
ounce of $688.
Exploration drilling in 2019, outlined several new mineralized
areas beneath the known mineral reserves and mineral
resources. An additional 4,900 metres of drilling is planned
in 2020 to follow-up on these new discoveries.
Staged Implementation of the Phase 2 Expansion Plan
The original Meliadine mine plan envisioned a 3,750 tpd mill
with ore being sourced entirely from underground in years one to
four. The mill capacity for Phase 2 was expected to increase
to approximately 6,000 tpd, with ore being sourced from both
underground and open pits starting in year five. The
increased tonnage from the Phase 2 expansion was forecast to offset
a planned decline in ore grade and keep production stable at
approximately 400,000 ounces of gold per year.
The current Meliadine mill facility has demonstrated the ability
to operate well in excess of the initial 3,750 tpd capacity
(maximum daily rate in 2019 reached of 4,950 tpd). As a
result, the Company has decided to accelerate the Phase 2 expansion
by approximately two years to utilize this extra mill
capacity. The initial source of open pit ore will be from two
pits developed on the Tiriganiaq deposit. Development of the
open pits is expected to provide additional mining flexibility and
provide extra water storage capacity if needed.
The Phase 2 expansion will be carried out in three stages:
- An increase in processing from current levels to 4,600 tpd by
the fourth quarter of 2020
- Increased processing rate of 5,000 tpd starting in the fourth
quarter of 2021
- An expansion to 6,000 tpd starting in the fourth quarter of
2024
Stripping of the Tiriganiaq pits commenced in the fourth quarter
of 2019, and is expected to be completed in the third quarter of
2020. The first ore from the Tiriganiaq pits is expected to
be mined in the fourth quarter of 2020.
The Tiriganiaq open pits contain probable
mineral reserves of 590,412 ounces of gold (3.8 million tonnes
grading 4.89 g/t gold). These pits are expected to be mined
in 2020 through 2027, with production gradually ramping up over the
8-year reserve life. The acceleration of the Phase 2
expansion results in slightly higher gold production (above
Previous Guidance) in 2021 and 2022. Production from the
Tiriganiaq pit in 2020 is forecast to be approximately 16,500
ounces, all of which will be considered pre-commercial.
Capital expenditures for stage 1 of the Phase 2 expansion in
2020 are estimated to be approximately $48
million. In 2022 and 2023, an additional $35 million is expected to be spent on
processing plant upgrades.
FINLAND AND SWEDEN
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. Exploration activities continue to
expand the mineral reserves and mineral resources and the Company
has approved an expansion to add an underground shaft and increase
expected mill throughput by 25 percent to 2.0 million tonnes per
annum ("mtpa"). In Sweden,
the Company has a 55 percent interest in the Barsele exploration
project.
Kittila – Record Ore Production in the Fourth Quarter of 2019
and Concrete Headframe Structure Completed
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
468
|
|
462
|
Tonnes of ore milled
per day
|
5,087
|
|
5,022
|
Gold grade
(g/t)
|
4.14
|
|
3.93
|
Gold production
(ounces)
|
55,345
|
|
49,353
|
Production costs per
tonne (EUR)
|
€
|
74
|
|
€
|
70
|
Minesite costs per
tonne (EUR)
|
€
|
79
|
|
€
|
73
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
694
|
|
$
|
738
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
756
|
|
$
|
787
|
Production costs per tonne in the fourth quarter of 2019
increased when compared to the prior-year period primarily due to
higher contractor costs, partially offset by higher throughput
levels and the timing of unsold inventory. Production costs
per ounce in the fourth quarter of 2019 decreased when compared to
the prior-year period due to higher gold production, partially
offset by higher contractor costs.
Minesite costs per tonne in the fourth quarter of 2019 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the fourth quarter of
2019 decreased when compared to the prior-year period due to the
reasons described above.
Gold production in the fourth quarter of 2019 increased when
compared to the prior-year period due to strong quarterly mill
throughput, higher grades from the Rimpi Zone and higher
recoveries.
Kittila Mine –
Operating Statistics
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
1,591
|
|
1,827
|
Tonnes of ore milled
per day
|
4,359
|
|
5,005
|
Gold grade
(g/t)
|
4.15
|
|
3.80
|
Gold production
(ounces)
|
186,101
|
|
188,979
|
Production costs per
tonne (EUR)
|
€
|
80
|
|
€
|
73
|
Minesite costs per
tonne (EUR)
|
€
|
76
|
|
€
|
75
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
766
|
|
$
|
831
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
736
|
|
$
|
853
|
Production costs per tonne for the full year 2019 increased when
compared to the prior-year period due to lower throughput levels as
a result of the scheduled mill autoclave shutdown in the second
quarter of 2019 and higher contractor costs, partially offset by
lower re-handling costs. Production costs per ounce for the
full year 2019 decreased when compared to the prior-year period
primarily due to the higher grade ore mined and lower re-handling
costs, partially offset by lower gold production and higher
contractor costs.
Minesite costs per tonne for the full year 2019 were essentially
the same when compared to the prior-year period. Total cash
costs per ounce for the full year 2019 decreased when compared to
the prior-year period due to the reasons mentioned above.
Gold production for the full year 2019 decreased when compared
to the prior-year period due to lower throughput.
In February 2018, the Company's
Board of Directors approved an expansion to increase throughput
rates at Kittila to 2.0 mtpa from the current rate of 1.6
mtpa. Permitting is ongoing for the increase in
throughput. This expansion includes the construction of a
1,044-metre deep shaft, a processing plant expansion as well as
other infrastructure and service upgrades over the period from 2018
to 2021.
The expansion project is expected to increase the efficiency of
the mine and maintain or decrease operating costs while providing
access to the deeper mining horizons. In addition, the shaft
is expected to provide access to the mineral resources located
below 1,150 metres depth, where recent exploration programs have
shown promising results.
The shaft and mill expansion are continuing to advance as
scheduled. The Company anticipates that final mill tie-in
work will occur during a planned four to five-week mill maintenance
shutdown in the third quarter of 2020.
In the fourth quarter of 2019, Kittila expansion work continued
on underground excavations for the new rock handling system and the
construction of the headframe. The ultimate height of the
headframe was reached on November 1,
2019 and since then work is on-going to install the required
steel structures. Shaft sinking is expected to begin shortly,
once final support and steel sets are installed in the first
segment.
As a result of higher than expected costs in shaft sinking and
in the rock handling system, the Kittila expansion project is now
forecast to cost between 160 to 170 million
euros (previous forecast was 160
million euros) and commissioning of the shaft is expected to
occur in the second quarter of 2021. The full expansion is
expected to be completed in the second half of 2021.
In 2019, there was approximately $16
million of additional capital spending at Kittila related to
the acceleration of costs relating to tailings storage and the
expansion project.
Continuing Confirmation of Main and Sisar zones in Roura-Rimpi Areas, and Extension of Sisar Zone
at Depth
Exploration at the Kittila mine is focused on extending the Main
and Sisar zones northward, southward and at depth in the Roura and
Rimpi areas to increase the mineral reserves in the large
orebody. Sisar is subparallel to and 50 to 300 metres east of
the main Kittila mineralization.
As of December 31, 2019, Kittila's
proven and probable mineral reserves are 4.1 million ounces of gold
(28.9 million tonnes grading 4.40 g/t gold). Measured and
indicated mineral resources are 1.5 million ounces of gold (18.1
million tonnes grading 2.60 g/t gold) and inferred mineral
resources are 1.7 million ounces of gold (13.8 million tonnes
grading 3.90 g/t gold). More details are available in the
Mineral Reserves and Mineral Resources sections of this news
release.
During the fourth quarter of 2019, exploration and conversion
drilling at the Kittila mine totaled 34 holes (10,842
metres). For the full year 2019, the mine-site exploration
drilling totaled 63 holes (30,668 metres) and conversion drilling
totaled 31 holes (10,842 metres).
Results from the exploration program at Kittila were last
reported in the Company's news release dated October 23, 2019.
Selected recent drill results are set out in the table below,
and drill hole collar coordinates are set out in a table in the
Appendix. Pierce points for all these holes are shown on the
Kittila Composite Longitudinal Section. All intercepts
reported for the Kittila mine show uncapped gold grades over
estimated true widths, based on a current geological interpretation
that is being updated as new information becomes available with
further drilling.
Selected recent exploration drill results from the
Roura-Rimpi Main Zone and Sisar Zone at the Kittila mine
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
RIE19-614
|
Sisar
Central
|
296.0
|
304.3
|
1,170
|
5.7
|
5.8
|
ROD19-701
|
Sisar Deep
|
1,077.7
|
1,097.0
|
1,677
|
9.1
|
13.8
|
including
|
|
1,085.0
|
1,093.0
|
1,678
|
3.8
|
22.7
|
VUG19-510
|
Main Rimpi
|
85.0
|
93.0
|
722
|
7.9
|
4.9
|
and
|
Main Rimpi
|
153.0
|
156.0
|
716
|
3.0
|
9.5
|
and
|
Main Rimpi
|
161.0
|
168.0
|
715
|
6.9
|
4.5
|
VUG19-511
|
Main Rimpi
|
29.0
|
33.0
|
727
|
3.8
|
3.6
|
and
|
Main Rimpi
|
52.0
|
56.0
|
725
|
3.8
|
6.7
|
and
|
Main Rimpi
|
90.0
|
96.0
|
722
|
5.7
|
3.8
|
and
|
Sisar Top
|
154.0
|
161.0
|
715
|
6.6
|
6.5
|
VUG19-513
|
Sisar Top
|
178.4
|
182.2
|
748
|
3.4
|
5.5
|
VUG19-516
|
Main Rimpi
|
156.0
|
168.0
|
682
|
11.9
|
7.3
|
VUG19-517
|
Main Rimpi
|
0.0
|
4.0
|
729
|
3.8
|
4.2
|
and
|
Sisar Top
|
146.0
|
158.0
|
689
|
11.5
|
5.3
|
[Kittila Mine – Composite Longitudinal Section]
Deep conversion and exploration drilling of the Roura area is
ongoing with one high-capacity drill rig. Hole ROD19-701
intersected 13.8 g/t gold over 9.1 metres at 1,677 metres depth
(including 22.7 g/t gold over 3.8 metres at 1,678 metres depth) in
the Sisar Deep Zone, approximately 250 metres east of the Main
Zone. This intercept has extended the Sisar Deep Zone
approximately 200 metres southward.
Approximately 640 metres to the north, hole RIE19-614
intersected the Sisar Zone in the contact area between Roura and
Rimpi, yielding 5.8 g/t gold over 5.7 metres at 1,170 metres
depth. This intercept has confirmed and extended the Sisar
Zone mineralization northward by 100 metres in this area.
The conversion drilling campaign in the Rimpi area has been
successful, with conversion drill holes confirming the expected
grades and widths in the Rimpi Zone between approximately 680 and
750 metres depth.
The conversion drilling encountered many separate
gold-mineralized lenses located close together. One example
is hole VUG19-511, which intercepted four closely-spaced lenses:
3.6 g/t gold over 3.8 metres at 727 metres depth, 6.7 g/t gold over
3.8 metres at 725 metres depth, 3.8 g/t gold over 5.7 metres at 722
metres depth and 6.5 g/t gold over 6.6 metres at 715 metres
depth. Intercepts have confirmed both the Main Zone and the
Sisar Zone mineral reserves and mineral resources in this part of
the Rimpi area.
In 2020, the Company expects to spend $11.8 million for work that will include 58,000
metres of drilling focused on the Main Zone in the Roura and Rimpi
areas as well as the Sisar Zone. The goal of this program is
to further explore the Kittila mineral reserve and mineral resource
potential and demonstrate the economic potential of the Sisar Zone
as a new mining horizon at Kittila.
The drilling includes 46,000 metres of capitalized conversion
drilling at the mine as described above and 12,000 metres of
expensed regional exploration drilling on targets beyond the
current mineral resource area.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations have been a solid source of precious
metals production (gold and silver) with stable operating costs and
strong free cash flow since 2009.
Pinos Altos – Production
Levels Expected to Improve in the First Half of 2020; Reyna de
Plata and Cubiro Drilling Continues to Extend
Mineralization
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore
processed (thousands of tonnes)
|
512
|
|
588
|
Tonnes of ore
processed per day
|
5,565
|
|
6,391
|
Gold grade
(g/t)
|
2.34
|
|
2.77
|
Gold production
(ounces)
|
35,822
|
|
49,170
|
Production costs per
tonne
|
$
|
68
|
|
$
|
60
|
Minesite costs per
tonne
|
$
|
70
|
|
$
|
59
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
966
|
|
$
|
716
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
758
|
|
$
|
518
|
Production costs per tonne in the fourth quarter of 2019
increased when compared to the prior-year period primarily due to
higher costs associated with underground mining and lower
throughput, partially offset by the timing of inventory and lower
re-handling costs. Production costs per ounce in the fourth
quarter of 2019 increased when compared to the prior-year period
due to higher costs associated with underground mining and lower
gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the fourth quarter of
2019 increased when compared to the prior-year period due to the
reasons described above and slightly lower by-product revenues.
Gold production in the fourth quarter of 2019 decreased when
compared to the prior-year period due to lower grades and lower
throughput.
At the Cerro Colorado
underground operations, mining activities in the second quarter of
2019 encountered an area with challenging ground conditions.
To address this, the Company adjusted the mining sequence, and as a
result, the mining capacity at Cerro
Colorado was reduced by 75% in the third quarter of
2019. Despite efforts to mitigate the challenging ground
conditions, the change in mining sequence at Cerro Colorado continued to have adverse
effect on fourth quarter production as this zone was expected to
provide higher grade ore feed.
The Company is continuing to take measures to mitigate the
challenging ground conditions at Cerro
Colorado and increase the amount of ore extracted in the
first half of 2020. These measures include:
- Decreasing the speed of the mining sequence
- Reducing stope size by 25%
- Potential to add additional stopes at the Santo Nino underground
- Potential to add higher grades at the Sinter deposit
Despite the lower gold production in the second half of 2019,
the production guidance at the Pinos Altos Complex for 2020 remains
unchanged at 150,000 ounces of gold. The action plan at
Cerro Colorado is on schedule and
full production is expected to re-commence in April 2020.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore
processed (thousands of tonnes)
|
2,007
|
|
2,218
|
Tonnes of ore
processed per day
|
5,499
|
|
6,077
|
Gold grade
(g/t)
|
2.55
|
|
2.69
|
Gold production
(ounces)
|
155,124
|
|
181,057
|
Production costs per
tonne
|
$
|
65
|
|
$
|
62
|
Minesite costs per
tonne
|
$
|
66
|
|
$
|
61
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
839
|
|
$
|
764
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
639
|
|
$
|
548
|
Production costs per tonne for the full year 2019 increased when
compared to the prior-year period due to lower throughput levels
and higher costs associated with underground mining, partially
offset by the timing of unsold inventory and lower re-handling
costs. Production costs per ounce for the full year 2019
increased when compared to the prior-year period due to the reasons
described above and lower gold production.
Minesite costs per tonne for the full year 2019 increased when
compared to the prior-year period due to the reasons described
above. Total cash costs per ounce for the full year 2019
increased when compared to the prior-year period due to the reasons
described above and lower by-product revenue.
Gold production for the full year 2019 decreased when compared
to the prior-year period due to lower grades and lower
throughput.
In 2019, the Company began testing samples from Pinos Altos and La India relating to an ore
sorting project. To-date, sorting of open pit ore from the
Sinter deposit has yielded favourable preliminary results.
Similar ore sorting pilot testing is being considered at the
Company's other operating sites. In the fourth quarter of
2019, ore from various assets of the Company were tested at the ore
sorting pilot plant at Pinos
Altos.
Development of the Sinter and Cubiro satellite deposits at
Pinos Altos continued to advance
in the fourth quarter of 2019. The Sinter deposit, located
approximately 2.0 kilometres northwest of the Pinos Altos mine, will be mined from
underground and a small open pit. At Sinter, the development
of the underground continued in the fourth quarter of 2019.
Production from the Sinter underground is expected to begin in the
fourth quarter of 2020.
Exploration Continues to Extend Reyna East Zone Along Strike and
at Depth; Underground Exploration and Conversion Drilling Ongoing
at Cubiro
Exploration at Pinos Altos is
focused on the Reyna East Zone (formerly called Reyna de Plata East) in the southeast of the
property and at the Cubiro deposit in the property's northwest,
where the exploration ramp development is providing additional
access for drilling exploration targets from underground.
The Cubiro deposit is located approximately 9.2 kilometres
northwest of the Pinos Altos mine
and 2.0 kilometres west of the Creston Mascota deposit. Based
on exploration drilling, Cubiro could potentially contribute
additional ore to be processed and extend the current life of mine
at Pinos Altos. At Cubiro, 375 metres of underground ramp
development was completed in the fourth quarter of 2019; a total of
approximately 1,754 metres of underground ramp development has been
completed to-date. Underground exploration drilling continued
in the fourth quarter of 2019.
The Company drilled 57 holes (10,748 metres) on the Pinos Altos property during the fourth quarter
of 2019, for a total of 26,261 metres drilled during the full
year. Fourth quarter drilling included 19 holes (3,441
metres) at Cubiro, 15 holes (2,685 metres) at Reyna East and 23
holes (4,622 metres) at Madrono/Molino.
Results from the Reyna East and Cubiro zones were last reported
in the Company's news release dated October
23, 2019. The current proven and probable mineral
reserves at Pinos Altos are
957,000 ounces of gold and 24 million ounces of silver (14.5
million tonnes grading 2.06 g/t gold and 52.6 g/t silver); in
addition, Pinos Altos has
indicated mineral resources of 1.1 million ounces of gold and 26
million ounces of silver (19.6 million tonnes grading 1.68 g/t gold
and 40.7 g/t silver) and inferred mineral resources of 435,000
ounces of gold and 9.0 million ounces of silver (7.0 million tonnes
grading 1.93 g/t gold and 39.9 g/t silver) as of December 31, 2019.
Selected recent drill results from the Reyna East Zone and the
Cubiro deposit at the Pinos Altos
mine are set out in the table below. The drill hole
coordinates are set out in a table in the Appendix of this news
release. The collars are also located on the Pinos Altos
Local Geology Map; pierce points for the Cubiro drilling are shown
on the Cubiro Deposit Composite Longitudinal Section. All
intercepts reported for the Reyna East Zone and the Cubiro
satellite deposit show uncapped and capped gold and silver grades
over estimated true widths, based on a preliminary geological
interpretation that will be updated as new information becomes
available with further drilling.
Selected recent exploration drill results from the Reyna East
(RE) Zone and the Cubiro satellite deposit at the Pinos Altos mine
Drill Hole
|
Deposit
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
Silver grade
(g/t)
(uncapped)
|
Silver grade
(g/t)
(capped)*
|
RP19-228
|
RE
|
207.0
|
212.1
|
200
|
3.9
|
8.7
|
5.4
|
86
|
86
|
RP19-233
|
RE
|
150.2
|
154.4
|
150
|
2.7
|
1.7
|
1.7
|
33
|
33
|
and
|
RE
|
166.2
|
198.0
|
177
|
24.4
|
0.7
|
0.7
|
22
|
22
|
including
|
|
175.2
|
183.0
|
177
|
7.1
|
2.0
|
2.0
|
36
|
36
|
RP19-235
|
RE
|
79.9
|
104.3
|
120
|
15.7
|
1.2
|
1.2
|
27
|
27
|
and
|
RE
|
115.6
|
132.0
|
150
|
10.6
|
2.0
|
2.0
|
36
|
36
|
RP19-244
|
RE
|
19.0
|
22.9
|
26
|
3.3
|
1.6
|
1.6
|
11
|
11
|
and
|
RE
|
51.0
|
65.0
|
74
|
11.5
|
1.2
|
1.2
|
12
|
12
|
CBUG19-002
|
Cubiro
North
|
84.9
|
90.0
|
244
|
4.9
|
11.1
|
2.5
|
33
|
33
|
CBUG19-006**
|
Cubiro
North
|
154.9
|
173.5
|
129
|
13.1
|
2.4
|
2.4
|
65
|
64
|
CBUG19-011
|
Cubiro
|
115.2
|
134.0
|
111
|
18.8
|
0.9
|
0.9
|
6
|
6
|
including
|
|
115.2
|
118.1
|
106
|
3.0
|
1.8
|
1.8
|
14
|
14
|
CBUG19-013
|
Cubiro
North
|
137.7
|
140.7
|
362
|
2.5
|
3.4
|
3.4
|
5
|
5
|
CBUG19-019**
|
Cubiro
|
181.7
|
201.0
|
210
|
18.8
|
2.5
|
2.0
|
24
|
22
|
Cut-off value 0.30
g/t gold, maximum 3.0 metres internal dilution.
|
*Holes at the
Reyna East Zone and the Cubiro satellite deposit use a capping
factor of 10 g/t gold and 200 g/t silver.
|
** CBUG19-006 and
CBUG19-019 have not yet completed QA/QC; check assays are
underway.
|
[Pinos Altos – Local Geology
Map]
The Reyna East Zone is located along the Reyna de Plata Fault,
almost 1,500 metres to the east-southeast of the main Reyna de
Plata deposit.
The Reyna East Zone contains low-sulphidation, epithermal
vein-style mineralization, with gold and silver mineralization
accompanied by green-clear-white quartz and calcite in veins,
stockwork and breccia. There is a direct correlation between
the occurrence of green quartz veinlets and the highest gold
values.
The total amount drilled at this deposit in 2019 was 11,577
metres in 88 holes, focused on exploring the deepest parts of the
structure within the preliminary pit design, as well as lateral
extensions along strike. Recent step-out drilling has
extended the Reyna East Zone to a total strike length of
approximately 1,500 metres in a southeast direction, dipping
steeply to the northeast. The zone extends from surface to a
depth of approximately 220 metres, and appears to plunge shallowly
to the west. It remains open along strike and at depth.
The highest grades and best widths have been encountered below
the planned pit limit, including hole RP19-228, which intersected 5.4 g/t gold and 86
g/t silver over 3.9 metres at 200 metres depth. Approximately
64 metres to the southeast, hole RP19-233 intersected 1.7 g/t gold and 33 g/t
silver over 2.7 metres at 150 metres depth and 0.7 g/t gold and 22
g/t silver over 24.2 metres at 177 metres depth, including 2.0
g/t gold and 36 g/t silver over 7.1 metres. Approximately 59
metres to the south, hole RP19-235
intersected 1.2 g/t gold and 27 g/t silver over 15.7 metres at 120
metres depth and 2.0 g/t gold and 36 g/t silver over 10.6 metres at
150 metres depth.
Step-out drilling to the east has located shallow
mineralization, such as hole RP19-244
that intersected 1.6 g/t gold and 11 g/t silver over 3.3 metres at
26 metres depth and 1.2 g/t gold and 12 g/t silver over 11.5 metres
at 74 metres depth. The hole is approximately 812 metres
east-southeast of hole RP19-235.
The recent program has resulted in the initial indicated and
initial inferred mineral resources estimated at Reyna East, part of
the current mineral reserves and mineral resources at Reyna de
Plata (below), which are included in the whole Pinos Altos mine estimate (outlined
above). The Reyna de Plata deposit (including the Reyna East
Zone) has probable mineral reserves (open pit) of 64,000 ounces of
gold and 2.0 million ounces of silver (2.1 million tonnes grading
0.96 g/t gold and 29.86 g/t silver), indicated mineral resources
(open pit and underground) of 159,000 ounces of gold and 4.3
million ounces of silver (4.4 million tonnes grading 1.12 g/t gold
and 30.16 g/t silver) and inferred mineral resources (open pit and
underground) of 121,000 ounces of gold and 3.0 million ounces of
silver (2.6 million tonnes grading 1.43 g/t gold and 34.89 g/t
silver), as of December 31, 2019.
Recent results show the potential of the Reyna East Zone to be
extended at depth along a strike length of at least 500 metres,
with the potential for underground mining scenarios.
Additional drilling is required to determine the orientation
and extent of the favourable mineralized vector. A
$1.1-million program (5,000 metres)
in 2020 will seek lateral extensions and the potential beneath the
current limit of the mineral resources.
The Cubiro deposit is composed of multiple gold-silver-bearing
white quartz-calcite veins (with barite and minor sulphides) up to
30 metres wide that strike northwest for almost 1,100 metres, with
a steep dip to the southwest. The Cubiro deposit remains open
to the northwest and at depth.
The drilling program for 2019 at Cubiro began in mid-year, with
19 drill holes (3,441 metres) completed during the fourth
quarter. The total drilling at Cubiro in 2019 was 25 holes
(4,539 metres). Drilling was from underground platforms at
the southeastern limit of the ramp, targeting the main Cubiro Zone
and the subparallel Cubiro North Zone. Results from the
Cubiro drill campaign were last reported in the Company's news
release dated October 23, 2019.
Recent drilling has confirmed high gold grades in the Cubiro
North structure and has extended the structure 100 metres to the
east and at depth. Cubiro North now extends over 150 metres
along strike from surface to a depth of 350 metres. Hole
CBUG19-006, drilled towards the northeast into the Cubiro North
structure, intersected 2.4 g/t gold and 64 g/t silver over 13.1
metres at 129 metres depth. From a set-up 150 metres to the
southeast, drilled northward, hole CBUG19-013 intersected 3.4 g/t
gold and 5 g/t silver over 2.5 metres at 362 metres depth.
The Cubiro North results show the potential for additional
mineralization toward the east and down-dip in this zone, with the
opportunity to increase the mineral resources.
Drilling of the main Cubiro Zone has begun; hole CBUG19-019
encountered a wider intercept yielding 2.0 g/t gold and 22 g/t
silver over 18.8 metres at 210 metres depth. Approximately 15
metres to the east, the same wide, mineralized vein was exposed by
a cross drift from the ramp (results are pending). The main
Cubiro Zone will continue to be investigated during the 2020
exploration program.
The Cubiro deposit (including Cubiro North) has indicated
mineral resources of 212,000 ounces of gold and 1.4 million ounces
of silver (2.4 million tonnes grading 2.78 g/t gold and 18.38 g/t
silver) and inferred mineral resources of 136,000 ounces of gold
and 912,000 ounces of silver (1.4 million tonnes grading 2.59 g/t
gold and 19.84 g/t silver), all at underground depth, declared as
part of the total Pinos Altos
mineral reserves and mineral resources estimate as of December 31, 2019. The gold grades are
significantly higher at Cubiro than for the whole Pinos Altos property.
Exploration will test the potential of Cubiro North to extend
toward the east and down-dip. A $1.8-million program (10,000 metres) in 2020 will
explore the current mineral resource limits, and the potential for
a northwest strike extension. Successful mineral resource
expansion and conversion at Cubiro would allow for the optimization
of gold production at the Pinos
Altos mine and potentially an extension of the mine
life.
Creston Mascota – Production Extended, Guidance
Increased
The Creston Mascota heap leach open pit mine has been operating
as a satellite operation to the Pinos
Altos mine since late 2010. During 2018, the mine
began preparations to transition operations to the new Bravo pit and to expand the existing heap
leach pad facility. Creston Mascota open pit mineral reserves
are expected to be depleted by the end of the first half of 2020,
while gold leaching is expected to continue through 2020.
Creston Mascota
Mine – Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore
processed (thousands of tonnes)
|
94
|
|
383
|
Tonnes of ore
processed per day
|
1,022
|
|
4,163
|
Gold grade
(g/t)
|
1.19
|
|
1.97
|
Gold production
(ounces)
|
6,919
|
|
11,452
|
Production costs per
tonne
|
$
|
90
|
|
$
|
24
|
Minesite costs per
tonne
|
$
|
95
|
|
$
|
25
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
1,217
|
|
$
|
792
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
1,073
|
|
$
|
736
|
Production costs per tonne in the fourth quarter of 2019
increased when compared to the prior-year period due to lower
tonnes processed and costs to facilitate the extension of the
Bravo central pit.
Production costs per ounce in the fourth quarter of 2019 increased
when compared to the prior-year period due to the reasons described
above and lower gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the fourth quarter of
2019 increased when compared to the prior-year period due to lower
by-product revenue and the reasons described above.
Gold production in the fourth quarter of 2019 decreased when
compared to the prior-year period due to lower tonnes processed and
lower grades. Additional ore was identified for mining in the
fourth quarter of 2019 and the first half of 2020. In order
to facilitate the extension of the Bravo central pit in 2020, mining was carried
out at a reduced rate in the fourth quarter of 2019. The
mining rate was negatively impacted by abnormally high rainfall,
which limited access to certain portions of the Bravo pit.
Creston Mascota
Mine – Operating Statistics
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore
processed (thousands of tonnes)
|
1,067
|
|
1,422
|
Tonnes of ore
processed per day
|
2,923
|
|
3,896
|
Gold grade
(g/t)
|
1.87
|
|
1.03
|
Gold production
(ounces)
|
48,380
|
|
40,180
|
Production costs per
tonne
|
$
|
34
|
|
$
|
26
|
Minesite costs per
tonne
|
$
|
33
|
|
$
|
27
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
740
|
|
$
|
928
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
554
|
|
$
|
841
|
Production costs per tonne for the full year 2019 increased when
compared to the prior-year period due to lower tonnes processed,
the timing of unsold inventory and have also been affected by
longer hauling distances. Production costs per ounce for the
full year 2019 decreased when compared to the prior-year period due
to higher gold production, partially offset by the timing of
inventory sold and higher mining costs including longer
hauling distances.
Minesite costs per tonne for the full year 2019 increased when
compared to the prior-year period due to reasons described
above. Total cash costs per ounce for the full year 2019
decreased when compared to the prior-year period due to the reasons
described above.
Gold production for the full year 2019 increased when compared
to the prior-year period primarily due to higher grades from ore
from the Bravo pit processed at
the Pinos Altos mill.
Mining operations are now expected to end in the first half of
2020, largely due to the discovery of additional ore outside
of the mineral reserve model.
La India – Production
Expected to Improve with the Commissioning of Agglomeration Units
in the First Quarter of 2020; Chipriona Drilling Continues to
Expand Sulphide Mineralization
The La India mine in Sonora,
Mexico, located approximately 70 kilometres northwest of the
Company's Pinos Altos mine,
achieved commercial production in February
2014.
La India Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore
processed (thousands of tonnes)
|
1,404
|
|
1,451
|
Tonnes of ore
processed per day
|
15,261
|
|
15,772
|
Gold grade
(g/t)
|
0.65
|
|
0.73
|
Gold production
(ounces)
|
20,616
|
|
26,308
|
Production costs per
tonne
|
$
|
12
|
|
$
|
12
|
Minesite costs per
tonne
|
$
|
13
|
|
$
|
13
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
812
|
|
$
|
677
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
892
|
|
$
|
694
|
Production costs per tonne in the fourth quarter of 2019 were
the same when compared to the prior-year period. Production
costs per ounce in the fourth quarter of 2019 increased when
compared to the prior-year period due to lower gold production and
higher contractor and reagents costs.
Minesite costs per tonne in the fourth quarter of 2019 were the
same when compared to the prior-year period. Total cash costs
per ounce in the fourth quarter of 2019 increased when compared to
the prior-year period due to lower production, higher contractor
and reagents costs and lower by-product revenue.
Gold production in the fourth quarter of 2019 decreased when
compared to the prior-year period due to lower tonnes processed and
lower grades. In the fourth quarter of 2019, production
continued to be affected by the high clay content of the ore, which
impacted recoveries. To mitigate this effect in the short
term, belt agglomeration (adding cement to the ore delivered by
conveyor from the crusher to the heap leach pad) was initiated in
the third quarter of 2019, adjustments were made to the stacking
sequence and irrigation rates were decreased on the leach pads to
help improve percolation.
During the second half of 2019, modifications were also made to
the screens and transfer chutes on the conveyors. An
automatic radial stacker was acquired to improve transfer of ore to
the leach pads and two agglomeration units were ordered to improve
percolation and are expected to be commissioned in March 2020.
Additional drilling is also being carried out to better define
areas with higher clay content in the geological model. These
improvements are expected to result in more normal production rates
in 2020.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2019
|
|
December 31,
2018
|
Tonnes of ore milled
(thousands of tonnes)
|
|
5,402
|
|
6,128
|
Tonnes of ore milled
per day
|
|
14,800
|
|
16,789
|
Gold grade
(g/t)
|
|
0.68
|
|
0.72
|
Gold production
(ounces)
|
|
82,190
|
|
101,357
|
Production costs per
tonne
|
|
$
|
12
|
|
$
|
11
|
Minesite costs per
tonne
|
|
$
|
13
|
|
$
|
12
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
799
|
|
$
|
682
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
823
|
|
$
|
685
|
Production costs per tonne for the full year 2019 were
essentially the same when compared to the prior-year period.
Production costs per ounce for the full year 2019 increased when
compared to the prior-year period primarily due to lower production
and higher contractor and reagents costs.
Minesite costs per tonne for the full year 2019 were essentially
the same when compared to the prior-year period. Total cash
costs per ounce for the full year 2019 increased when compared to
the prior-year period primarily due to lower production and higher
contractor and reagents costs and lower by-product revenues.
Gold production for the full year 2019 decreased when compared
to the prior-year period primarily due to lower tonnes processed as
a result of the high clay content of the ore as described
above.
La India Exploration Focused on the Chipriona Regional
Target
The regional exploration program continues to return encouraging
results at the Chipriona polymetallic sulphide target, located
approximately one kilometre north of the North Zone at the La India
mine. Results were last reported in the Company's news
release dated July 24, 2019. In
the second half of 2019, the regional exploration program included
reconnaissance geological work in numerous prospects and
drilling. A second phase of drilling was conducted between
September and November consisting of 3,455 metres in 17 drill holes
in order to increase the certainty of the geologic model and to
collect geotechnical data. For the full-year 2019, Chipriona
drilling totaled 50 holes (13,252 metres).
The positive drill results have led to a new indicated mineral
resource and a 48% year-over-year increase of gold contained in
inferred mineral resources at the Chipriona project, all at open
pit depth. As of December 31,
2019, the Chipriona deposit has indicated mineral resources
of 45,000 ounces of gold, 2.1 million ounces of silver, 359 tonnes
of copper and 17,000 tonnes of zinc (1.3 million tonnes grading
1.11 g/t gold, 50.99 g/t silver, 0.03% copper and 1.36% zinc) and
inferred mineral resources of 238,000 ounces of gold, 29.5 million
ounces of silver, 15,400 tonnes of copper and 86,900 tonnes of zinc
(10.7 million tonnes grading 0.69 g/t gold, 85.44 g/t silver, 0.14%
copper and 0.81% zinc). For more details, refer to the
Mineral Resources section of this news release.
Mine-site exploration at the La India property in the fourth
quarter of 2019 included 25 holes (1,350 metres) at the Los Tubos
Zone, as well as 20 holes (1,420 metres) of conversion drilling at
the Main Zone. Drill results for the El Realito Zone were
last reported in the Company's news release dated October 23, 2019; there was no drilling at this
deposit in the fourth quarter. For the full-year 2019, La
India mine-site exploration drilling was on budget, totaling 18,330
metres; the full-year drilling comprised 11,279 metres at
El Realito, 4,012 metres in the
Main Zone, 2,046 metres at Los Tubos and 993 metres at El
Cochi.
As of December 31, 2019, the El
Realito Zone has probable mineral reserves of 106,000 ounces of
gold and 485,000 ounces of silver (4.7 million tonnes grading 0.71
g/t gold and 3.24 g/t silver), measured mineral resources of 21,000
ounces of gold and 149,000 ounces of silver (1.2 million tonnes
grading 0.55 g/t gold and 3.89 g/t silver), indicated mineral
resources of 17,000 ounces of gold and 83,000 ounces of silver (0.7
million tonnes grading 0.71 g/t gold and 3.48 g/t silver) and
inferred mineral resources of 4,000 ounces of gold and 24,000
ounces of silver (0.3 million tonnes grading 0.47 g/t gold and 2.64
g/t silver).
The budget for mine-site exploration in 2020 is $3.3 million for 17,000 metres of drilling.
Selected recent intercepts from the La India property are set
out in the tables below. The drill hole collar coordinates
are set out in a table in the Appendix of this news release.
The collars are located on the La India Mine Local Geology
Map. All intercepts reported for the La India property show
uncapped and capped gold and silver grades over estimated true
widths, based on a preliminary geological interpretation that will
be updated as new information becomes available with further
drilling.
Recent exploration drill results from the Chipriona target at
the La India property
Drill Hole
|
Vein
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)*
|
Silver grade
(g/t)
(uncapped)
|
Silver
grade (g/t)
(capped)*
|
CHP19-099
|
new
|
88.0
|
99.7
|
86
|
8.3
|
0.2
|
0.2
|
125
|
97
|
including
|
stockwork
|
88.0
|
91.0
|
92
|
2.1
|
0.3
|
0.3
|
410
|
298
|
CHP19-103
|
stockwork
|
105.0
|
111.0
|
84
|
5.8
|
1.4
|
1.4
|
165
|
165
|
CHP19-104
|
new
|
21.0
|
25.5
|
14
|
4.3
|
2.7
|
2.7
|
95
|
95
|
CHP19-119
|
CHPV
|
121.0
|
145.0
|
83
|
21.8
|
1.4
|
1.1
|
55
|
55
|
including
|
|
134.0
|
140.6
|
84
|
5.9
|
4.0
|
2.8
|
178
|
178
|
CHP19-123
|
CHPV - HQV
|
129.0
|
166.0
|
107
|
34.8
|
1.6
|
1.6
|
95
|
95
|
including
|
|
130.0
|
135.0
|
89
|
4.7
|
3.9
|
3.9
|
323
|
323
|
*Holes at
Chipriona use a capping factor of 10 g/t gold and 700 g/t
silver.
|
Drill Hole
|
Vein
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Copper
grade (%)
(uncapped)
|
Zinc grade
(%)
(uncapped)
|
Lead grade
(%)
(uncapped)
|
CHP19-099
|
new
|
88.0
|
99.7
|
86
|
8.3
|
0.4
|
0.1
|
0.0
|
including
|
stockwork
|
88.0
|
91.0
|
92
|
2.1
|
1.0
|
0.4
|
0.0
|
CHP19-103
|
stockwork
|
105.0
|
111.0
|
84
|
5.8
|
0.0
|
0.4
|
0.2
|
CHP19-104
|
new
|
21.0
|
25.5
|
14
|
4.3
|
0.0
|
3.2
|
1.0
|
CHP19-119
|
CHPV
|
121.0
|
145.0
|
83
|
21.8
|
0.1
|
0.7
|
0.5
|
including
|
|
134.0
|
140.6
|
84
|
5.9
|
0.3
|
2.2
|
1.5
|
CHP19-123
|
CHPV - HQV
|
129.0
|
166.0
|
107
|
34.8
|
0.2
|
1.5
|
0.4
|
including
|
|
130.0
|
135.0
|
89
|
4.7
|
0.7
|
6.4
|
1.3
|
*Holes at
Chipriona use no capping factor for base metal
grades.
|
[La India Mine – Local Geology Map]
Mineralization at Chipriona consists of what appears to be
structurally controlled gold- and silver-rich veins, stringers,
stockwork and breccias with significant zinc, lead and copper
content in sulphides. Surface mapping and sampling have
traced stacked structures within the Chipriona mineralized
corridor, which ranges from tens of metres to a few hundred metres
in width over a northwest strike length of at least 2,500 metres;
2,300 metres of this length has been confirmed through
drill-testing. Mineralization has been intersected from
surface to a depth of approximately 275 metres.
The project hosts a swarm of subparallel structural pathways
that are favourable hosts for sulphide-based gold-silver
mineralization with base metal credits. Significant
mineralization has been intersected near surface over substantial
widths; this suggests the potential for bulk mining lower-grade
mineralization in stockwork zones that surround high-grade feeder
zones. Currently, the mineralization is open towards the
southeast and down dip.
The 2019 drill program has helped extend the mineralization by
500 metres along strike, increasing the understanding of vein
geometry along the corridor and down dip.
Hole CHP19-123 confirmed grades and widths near the southeastern
edge of the current mineral resources, intersecting 1.6 g/t gold,
95 g/t silver, 0.2% copper, 1.5% zinc and 0.4% lead over 34.8
metres at 107 metres depth, including 3.9 g/t gold, 323 g/t silver,
0.7% copper, 6.4% zinc and 1.3% lead over 4.7 metres. Almost
100 metres to the northwest, hole CHP19-119 intersected 1.1 g/t
gold, 55 g/t silver, 0.7% zinc and 0.5% lead over 21.8 metres at 83
metres depth, including 2.8 g/t gold, 178 g/t silver, 2.2% zinc and
1.5% lead over 5.9 metres. In step-out drilling 200 metres to
the northwest of this hole, hole CHP19-104 intersected a new splay
vein, yielding 2.7 g/t gold, 95 g/t silver, 3.2% zinc and 1.0% lead
over 4.3 metres at 14 metres depth.
In the northwest portion of the deposit, hole CHP19-099
intersected a new vein in the footwall of the main corridor,
yielding 0.2 g/t gold, 97 g/t silver and 0.4% copper over 8.3
metres at 86 metres depth, including 0.3 g/t gold, 298 g/t silver
and 1.0% copper over 2.1 metres.
Because of the prospective nature of the Chipriona deposit, a
6,000-metre drill program is planned for the first half of 2020
aimed at confirming and extending mineralization at depth in the
main Chipriona corridor and splay veins. Another 4,000 metres
of drilling is planned to test other nearby targets with
characteristics similar to Chipriona. Preliminary
metallurgical testing is continuing, to determine the potential for
using a processing facility to treat Chipriona and other sulphide
mineralization on the property.
Santa Gertrudis – Drilling
Yields Strong Results in Two Parts of Trinidad Zone; High-grade
Mineralization Expanded at Amelia Deposit and Additional High-grade
Structures Discovered in Espiritu Santo Deposit
Agnico Eagle acquired its 100% interest in the Santa Gertrudis gold property in November
2017. The 44,145-hectare property is located approximately
180 kilometres north of Hermosillo
in Sonora, Mexico.
The property was the site of historic heap-leach operations that
produced approximately 565,000 ounces of gold at a grade of 2.1 g/t
gold between 1991 and 2000. The project has substantial
surface infrastructure including pre-stripped pits, haul roads,
water sources and several buildings. Extensive drilling and
studies in 2019 have led to initial indicated mineral resources of
104,000 ounces of gold (5.1 million tonnes grading 0.64 g/t gold)
at open pit depth, and an increased inferred mineral resource of
1.2 million ounces of gold (22.1 million tonnes grading 1.64 g/t
gold) mainly at open pit depth, as of December 31, 2019. More details are
available in the Mineral Resources section of this news
release.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated October 23, 2019.
In the fourth quarter of 2019, 23 holes (7,069 metres) were
completed in the Trinidad Zone, with drilling focused on the
exploration and the development of new mineral resources. The
full-year 2019 exploration program at Santa Gertrudis totaled 143 holes (19,352
metres in Amelia and 23,426 metres in the rest of the project),
compared with an initial budget of 29,000 metres of drilling.
The focus of the program was on mineral resource expansion and
refining the understanding of new targets within the Trinidad
Zone.
Selected recent drill results from the Santa Gertrudis project are set out in the
table below. The drill hole coordinates are set out in a
table in the Appendix of this news release. Drill collars are
also shown on the Santa Gertrudis Project Local Geology Map.
All intercepts reported for the Santa
Gertrudis project show uncapped and capped gold and silver
grades over an estimated true width and depth of midpoint below the
surface, based on a preliminary geological interpretation that will
be updated as new information becomes available with further
drilling.
Selected recent exploration drill results from the Trinidad
Zone of the Santa Gertrudis
project
Drill Hole
|
Deposit
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)*
|
Silver
grade (g/t)
(uncapped)
|
Silver
grade (g/t)
(capped)*
|
SGE19-301
|
Amelia
|
440.0
|
449.0
|
335
|
8.7
|
3.6
|
3.6
|
5
|
5
|
including
|
|
440.0
|
444.0
|
333
|
3.9
|
6.7
|
6.7
|
10
|
10
|
and
|
Amelia
|
477.0
|
508.0
|
367
|
30.5
|
1.9
|
1.9
|
23
|
23
|
including
|
|
492.0
|
499.0
|
369
|
6.8
|
3.3
|
3.3
|
75
|
75
|
and
|
Amelia
|
582.0
|
587.0
|
418
|
4.8
|
4.7
|
4.7
|
19
|
19
|
SGE19-312
|
Espiritu
Santo
|
343.0
|
347.5
|
211
|
4.0
|
3.3
|
3.3
|
731
|
224
|
SGE19-314
|
Espiritu
Santo
|
143.0
|
146.0
|
52
|
3.0
|
6.8
|
6.8
|
42
|
42
|
and
|
Espiritu
Santo
|
188.0
|
191.0
|
74
|
3.0
|
4.5
|
4.5
|
1
|
1
|
SGE19-315
|
Amelia
|
408.0
|
414.0
|
337
|
5.2
|
4.5
|
4.5
|
5
|
5
|
and
|
Amelia
|
427.0
|
437.0
|
355
|
8.7
|
2.4
|
2.4
|
7
|
7
|
including
|
|
431.0
|
436.0
|
356
|
4.3
|
4.3
|
4.3
|
12
|
12
|
and
|
Amelia
|
467.0
|
475.1
|
386
|
6.9
|
2.3
|
2.3
|
9
|
9
|
and
|
Amelia
|
488.0
|
512.0
|
410
|
20.4
|
2.9
|
2.9
|
38
|
38
|
including
|
|
494.0
|
499.0
|
407
|
4.2
|
4.0
|
4.0
|
39
|
39
|
SGE19-317
|
Amelia
|
454.0
|
463.0
|
366
|
8.5
|
3.0
|
3.0
|
11
|
11
|
and
|
Amelia
|
467.0
|
484.0
|
376
|
16.1
|
2.2
|
2.2
|
5
|
5
|
including
|
|
468.0
|
472.0
|
373
|
3.8
|
5.1
|
5.1
|
10
|
10
|
and
|
Amelia
|
490.0
|
499.5
|
389
|
9.1
|
9.4
|
9.4
|
32
|
32
|
including
|
|
490.0
|
494.5
|
386
|
4.3
|
17.8
|
17.2
|
65
|
65
|
SGE19-320
|
Amelia
|
789.0
|
793.0
|
677
|
3.8
|
47.1
|
13.4
|
583
|
436
|
and
|
Amelia
|
808.8
|
812.0
|
688
|
3.0
|
4.2
|
4.2
|
10
|
10
|
SGE19-328
|
Espiritu
Santo
|
155.0
|
161.5
|
90
|
6.5
|
5.9
|
5.9
|
159
|
159
|
*Holes in the
Trinidad Zone use a capping factor of 25 g/t gold and 1,000 g/t
silver. The cut-off grade used for these intervals is 0.3 g/t
gold in oxide material and 1.0 g/t gold in sulphide material. The
minimum estimated true width is 3.0 metres.
|
[Santa Gertrudis Project Local Geology Map]
[Santa Gertrudis Project – Amelia Deposit Longitudinal
Section]
Recent geological mapping and surface sampling by the Company
continues to find additional target areas in the Trinidad Zone.
Amelia is one of three deposits that comprise the Trinidad Zone
and is the site of a previously operating open-pit gold mine.
High-grade gold mineralization can be found in multiple parallel
structures that commonly correspond to lithological contacts.
The Amelia deposit has been extended 100 metres to an east-west
strike length of approximately 900 metres and dips steeply to the
north; it includes an ore shoot on the west side that plunges
steeply to the east. Most of the open pit (oxide) material
lies between surface and 100 metres depth, while the underground
material reaches below the open pit mineral resources to a depth of
approximately 350 metres, but recent drilling has intersected an
extension of the mineralization at 677 metres below surface.
The Amelia deposit remains open along strike and at depth.
The Company has updated the inferred mineral resources at Amelia to
1.6 million tonnes grading 1.38 g/t gold (70,000 ounces of gold) at
open pit depth, as well as an initial underground inferred mineral
resource of 3.1 million tonnes grading 4.58 g/t gold (451,000
ounces of gold) in the high-grade sulphide material. The
Amelia mineral resources are part of the Santa Gertrudis project estimate as of
December 31, 2019.
Recent drill results demonstrate that high-grade mineralization
remains open along the plunge of the ore shoot, with hole SGE19-320
intersecting 13.4 g/t gold and 436 g/t silver over 3.8 metres at
677 metres depth and 4.2 g/t gold and 10 g/t silver over 3.0 metres
at 688 metres depth; the latter intercept is approximately 200
metres below the nearest designed underground stope of the current
mineral resources, and is the deepest intercept to date at the
Santa Gertrudis project, as shown
on the Amelia Deposit Longitudinal Section.
There were shallower intercepts in the ore shoot as well.
Approximately 174 metres to the southwest, hole SGE19-301
intersected three mineralized structures: 6.7 g/t gold over 3.9
metres at 333 metres depth, 1.9 g/t gold over 30.5 metres at 367
metres depth and 4.7 g/t gold over 4.8 metres at 418 metres
depth. Approximately 130 metres farther to the southwest,
hole SGE19-315 intersected four mineralized
structures, including 4.5 g/t gold over 5.2 metres at 337
metres depth and 2.9 g/t gold over 20.4 metres at 410 metres depth
(including 4.0 g/t gold over 4.2 metres). Approximately 154
metres to the northwest, hole SGE19-317 intersected three
mineralized structures: 3.0 g/t gold over 8.5 metres at 366 metres
depth, 5.1 g/t gold over 3.8 metres at 373 metres depth and 9.4 g/t
gold over 9.1 metres at 389 metres depth (including 17.2 g/t gold
over 4.3 metres). All results reported for the Amelia
deposit, with the exception of drill hole SGE19-320, were
designed to expand the high-grade mineralization at 80-metre
step-outs; the resulting grades and widths are encouraging as they
met or were better than expectations.
Espiritu Santo is a discovery
made during the 2019 exploration campaign within the Trinidad Zone,
approximately 500 metres east-southeast of the Amelia
deposit. Three recent drill holes discovered mineralized
structures at shallow depths not previously identified. Hole
SGE19-312 intersected 3.3 g/t gold and 224 g/t silver over 4.0
metres at 211 metres depth. Approximately 320 metres to the
southwest, hole SGE19-328 intersected 5.9 g/t gold and 159 g/t
silver over 6.5 metres at 90 metres depth. Approximately 112
metres to the southeast of hole SGE19-328, hole SGE19-314
intersected 6.8 g/t gold and 42 g/t silver over 3.0 metres at 52
metres depth and 4.5 g/t gold over 3.0 metres at 74 metres
depth. This discovery increases the potential for additional
gold and silver mineralization near the Amelia deposit that could
add mineral resources in the next estimate. More drilling and
metallurgical testing are planned during 2020 to determine the
value and potential recovery of gold and silver metals in
Espiritu Santo.
The Company plans to continue its aggressive exploration program
at Santa Gertrudis with 25,000
metres of drilling in 2020 budgeted at $10.4
million and focused on expanding the current mineral
resources and testing new targets. The Santa Gertrudis project contains low-grade
oxide and high-grade sulphide types of mineralization that have
been recognized from surface to 688 metres depth locally. The
Company believes that the Santa
Gertrudis project has the potential to eventually be a
similar size operation to La India.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its operating mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States and Sweden. The
Company and its shareholders have full exposure to gold prices due
to its long-standing policy of no forward gold sales. Agnico
Eagle has declared a cash dividend every year since 1983.
For further information regarding Agnico Eagle, contact Investor
Relations at info@agnicoeagle.com or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including "total
cash costs per ounce", "all-in sustaining costs per ounce",
"minesite costs per tonne" and "adjusted net income" that are not
standardized measures under IFRS. These data may not be
comparable to data reported by other issuers. For a
reconciliation of these measures to the most directly comparable
financial information reported in the consolidated financial
statements prepared in accordance with IFRS, other than adjusted
net income, see "Reconciliation of Non-GAAP Financial Performance
Measures" below.
The total cash costs per ounce of gold produced is reported on
both a by-product basis (deducting by-product metal revenues from
production costs) and co-product basis (before deducting by-product
metal revenues). The total cash costs per ounce of gold
produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income for by-product revenues, unsold concentrate inventory
production costs, smelting, refining and marketing charges and
other adjustments, and then dividing by the number of ounces of
gold produced. The total cash costs per ounce of gold
produced on a co-product basis is calculated in the same manner as
the total cash costs per ounce of gold produced on a by-product
basis, except that no adjustment is made for by-product metal
revenues. Accordingly, the calculation of total cash costs
per ounce of gold produced on a co-product basis does not reflect a
reduction in production costs or smelting, refining and marketing
charges associated with the production and sale of by-product
metals. The total cash costs per ounce of gold produced is
intended to provide information about the cash-generating
capabilities of the Company's mining operations. Management
also uses this measure to monitor the performance of the Company's
mining operations. As market prices for gold are quoted on a
per ounce basis, using the total cash costs per ounce of gold
produced on a by-product basis measure allows management to assess
a mine's cash-generating capabilities at various gold prices.
All-in sustaining costs per ounce of gold produced on a
by-product basis are calculated 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, and
then dividing by the number of ounces of gold produced. The
all-in sustaining costs per ounce of gold produced on a co-product
basis is calculated in the same manner as the all-in sustaining
costs per ounce of gold produced on a by-product basis, except that
the total cash costs on a co-product basis are used, meaning no
adjustment is made for by-product metal revenues. All-in
sustaining costs per ounce is used to show the full cost of gold
production from current operations. Management is aware that
these per ounce measures of performance can be affected by
fluctuations in foreign 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.
The World Gold Council ("WGC") is a non-regulatory market
development organization for the gold industry. Although the
WGC is not a mining industry regulatory organization, it has worked
closely with its member companies to develop relevant non-GAAP
measures. The Company follows the guidance on all-in
sustaining costs released by the WGC in November 2018.
Adoption of the all-in sustaining costs metric is voluntary and,
notwithstanding the Company's adoption of the WGC's guidance,
all-in sustaining costs per ounce of gold produced reported by the
Company may not be comparable to data reported by other gold
producers. The Company believes that this measure provides
helpful information about operating performance. However,
this non-GAAP measure should be considered together with other data
prepared in accordance with IFRS as it is not necessarily
indicative of operating costs or cash flow measures prepared in
accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income for
unsold concentrate inventory production costs and other
adjustments, and then dividing by tonnes of ore processed. As
the total cash costs per ounce of gold produced can be affected by
fluctuations in by‑product metal prices and foreign exchange rates,
management believes that minesite costs per tonne provide
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.
Adjusted net income is calculated by adjusting the net income as
recorded in the consolidated statements of income for foreign
currency translation gains and losses, mark-to-market adjustments,
non-recurring gains and losses and unrealized gains and losses on
financial instruments. Management uses adjusted net income to
evaluate the underlying operating performance of the Company and to
assist with the planning and forecasting of future operating
results. Management believes that adjusted net income is a
useful measure of performance because foreign currency translation
gains and losses, mark-to-market adjustments, non-recurring gains
and losses and unrealized gains and losses on financial instruments
do not reflect the underlying operating performance of the Company
and may not be indicative of future operating results.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating foreign exchange rates and
metal prices. This news release also contains information as
to estimated future total cash costs per ounce, all-in sustaining
costs per ounce and minesite costs per tonne. The estimates
are based upon the total cash costs per ounce, all-in sustaining
costs per ounce and minesite costs per tonne that the Company
expects to incur to mine gold at its mines and projects and,
consistent with the reconciliation of these actual costs referred
to above, do not include production costs attributable to accretion
expense and other asset retirement costs, which will vary over time
as each project is developed and mined. It is therefore not
practicable to reconcile these forward-looking non-GAAP financial
measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
February 13, 2020. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include, without limitation: the
Company's forward-looking production guidance, including estimated
ore grades, recovery rates, project timelines, drilling results,
metal production, life of mine estimates, total cash costs per
ounce, all-in sustaining costs per ounce, minesite costs per tonne,
other expenses and cash flows; the estimated timing and conclusions
of technical studies and evaluations; the methods by which ore will
be extracted or processed; statements concerning the Company's
expansion plans at Kittila, Meliadine Phase 2 and Amaruq Phase 2,
and the Company's ramp up of activities at Meliadine and
Amaruq, including the timing, funding, completion and commissioning
thereof; statements concerning other expansion projects, recovery
rates, mill throughput, optimization and projected exploration,
including costs and other estimates upon which such projections are
based; statements regarding timing and amounts of capital
expenditures and other expenditures; estimates of future mineral
reserves, mineral resources, mineral production, optimization
efforts and sales; estimates of future capital expenditures and
other cash needs, and expectations as to the funding thereof; the
projected development of certain ore deposits, including estimates
of exploration, development and production and other capital costs
and estimates of the timing of such exploration, development and
production or decisions with respect to such exploration,
development and production; estimates of mineral reserves and
mineral resources and the effect of drill results on future mineral
reserves and mineral resources; statements regarding the Company's
ability to obtain the necessary permits and authorizations in
connection with its proposed or current exploration, development
and mining operations and the anticipated timing thereof;
statements regarding anticipated future exploration; the
anticipated timing of events with respect to the Company's mine
sites; statements regarding the sufficiency of the Company's cash
resources; future dividend amounts and payment dates; and
statements regarding anticipated trends with respect to the
Company's operations, exploration and the funding thereof.
Such statements reflect the Company's views as at the date of this
news release and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements. 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, 2018
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2018 ("Form 40-F") filed with the
SEC as well as: that there are no significant disruptions affecting
operations; that production, permitting, development, expansion and
the ramp up of operations at each of Agnico Eagle's properties
proceeds on a basis consistent with current expectations and plans;
that the relevant metal prices, foreign 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 seismic
activity at the Company's operations at LaRonde and other
properties is as expected by the Company; that the Company's
current plans to optimize production are successful; and that there
are no material variations in the current tax and regulatory
environment. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks
include, but are not limited to: the volatility of prices of gold
and other metals; uncertainty of mineral reserves, mineral
resources, mineral grades and mineral recovery estimates;
uncertainty of future production, project development, capital
expenditures and other costs; foreign exchange rate fluctuations;
financing of additional capital requirements; cost of exploration
and development programs; seismic activity at the Company's
operations, including the LaRonde mine; mining risks; community
protests, including by First Nations groups; risks associated with
foreign operations; governmental and environmental regulation; the
volatility of the Company's stock price; and risks associated with
the Company's currency, fuel and by-product metal derivative
strategies. For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained
in this news release, see the AIF and MD&A filed on SEDAR at
www.sedar.com and included in the Form 40-F filed on EDGAR at
www.sec.gov, as well as the Company's other filings with the
Canadian securities regulators and the SEC. Other than as
required by law, the Company does not intend, and does not assume
any obligation, to update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared 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 SEC
Industry Guide 7, as interpreted by the SEC staff. However,
the definitions in NI 43-101 differ in certain respects from those
under SEC Industry Guide 7. Accordingly, mineral reserve and
mineral resource information contained in this news release may not
be comparable to similar information disclosed by United States companies. Under the SEC's
Industry Guide 7, 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.
For United States reporting
purposes, the SEC has adopted amendments to its disclosure rules
(the "SEC Modernization Rules") to modernize the mining property
disclosure requirements for issuers whose securities are registered
with the SEC under the United States Securities Exchange Act of
1934, as amended (the "Exchange Act"), which became effective
February 25, 2019. The SEC
Modernization Rules more closely align the SEC's disclosure
requirements and policies for mining properties with current
industry and global regulatory practices and standards, including
NI 43-101, and replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7. Issuers must begin to comply with the SEC
Modernization Rules in their first fiscal year beginning on or
after January 1, 2021, though
Canadian issuers that report in the
United States using the MJDS may still use NI 43-101 rather
than the SEC Modernization Rules when using the SEC's MJDS
registration statement and annual report forms. SEC Industry
Guide 7 will remain effective until all issuers are required to
comply with the SEC Modernization Rules, at which time SEC Industry
Guide 7 will be rescinded.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of measured mineral resources",
"indicated mineral resources" and "inferred mineral
resources." In addition, the SEC has amended definitions of
"proven mineral reserves" and "probable mineral reserves" in the
SEC Modernization Rules, with definitions that are substantially
similar to those used in NI 43-101.
United States investors are
cautioned that while the SEC now recognizes "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that any part or all of the
mineral deposits in these categories will ever be converted into a
higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Accordingly,
investors are cautioned not to assume that any "measured mineral
resources", "indicated mineral resources", or "inferred mineral
resources" that the Company reports in this news release are or
will be economically or legally mineable.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all
of an inferred mineral resource will ever be upgraded to a higher
category. Under Canadian regulations, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in limited circumstances.
Investors are cautioned not to assume that any part or all of an
inferred mineral resource exists, or is or will ever be
economically or legally mineable.
The mineral reserve and mineral resource data set out in
this news release are estimates, and no assurance can be given
that the anticipated tonnages and grades will be achieved or that
the indicated level of recovery will be realized. The Company does
not include equivalent gold ounces for by-product metals contained
in mineral reserves in its calculation of contained ounces and
mineral reserves are not reported as a subset of mineral
resources.
Scientific and Technical Data
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Daniel Paré, Eng., Vice-President
Operations – Eastern Canada;
relating to Nunavut operations has
been approved by Dominique Girard, Eng., Vice-President, Nunavut
Operations; relating to the Finland operations has been approved by
Francis Brunet, Eng., Corporate Director, Business Strategy;
relating to Southern Business operations has been approved by Marc
Legault, Eng., Senior Vice President, Operations – U.S.A. & Latin
America; and relating to exploration has been approved by
Guy Gosselin, Eng. and P.Geo., Senior Vice-President, Exploration,
each of whom is a "Qualified Person" for the purposes of NI
43-101.
The scientific and technical information relating to Agnico Eagle's
mineral reserves and mineral resources contained herein (other than
the Canadian Malartic mine) has been approved by Dyane Duquette, P.Geo., Corporate Director,
Reserves Development of the Company; relating to mineral reserves
and mineral resources at the Canadian Malartic mine and other
Partnership projects such as Odyssey, East Malartic and East Gouldie projects, has
been approved by Sylvie Lampron, Eng., Senior Project Mine Engineer
at Canadian Malartic Corporation
(for engineering) and Pascal
Lehouiller, P.Geo., Senior Resource Geologist at Canadian
Malartic Corporation (for geology),
each of whom is a "Qualified Person" for the purposes of NI
43-101.
Detailed Mineral Reserves and Mineral Resources Data
|
|
|
|
|
|
|
MINERAL
RESERVES
|
|
|
|
As of December 31,
2019
|
OPERATION
|
|
|
PROVEN
|
PROBABLE
|
PROVEN &
PROBABLE
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
LaRonde
|
Underground
|
100%
|
4,802
|
5.05
|
780
|
10,117
|
6.48
|
2,108
|
14,920
|
6.02
|
2,888
|
LaRonde Zone
5
|
Underground
|
100%
|
3,307
|
2.13
|
226
|
5,980
|
2.39
|
460
|
9,287
|
2.30
|
686
|
Canadian
Malartic
|
Open Pit
|
50%
|
23,847
|
0.83
|
635
|
43,057
|
1.27
|
1,754
|
66,904
|
1.11
|
2,389
|
Goldex
|
Underground
|
100%
|
272
|
1.85
|
16
|
20,709
|
1.61
|
1,072
|
20,980
|
1.61
|
1,088
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
-
|
-
|
5,413
|
0.85
|
147
|
5,413
|
0.85
|
147
|
Amaruq
|
Open Pit
|
100%
|
172
|
1.83
|
10
|
22,600
|
3.76
|
2,731
|
22,773
|
3.74
|
2,741
|
Amaruq
|
Underground
|
100%
|
-
|
-
|
-
|
3,303
|
5.43
|
577
|
3,303
|
5.43
|
577
|
Amaruq
Total
|
|
|
172
|
1.83
|
10
|
25,903
|
3.97
|
3,308
|
26,075
|
3.96
|
3,318
|
Meadowbank
|
Open Pit
|
100%
|
37
|
2.24
|
3
|
-
|
-
|
-
|
37
|
2.24
|
3
|
Meadowbank Complex
Total
|
|
|
209
|
1.90
|
13
|
25,903
|
3.97
|
3,308
|
26,112
|
3.96
|
3,320
|
Meliadine
|
Open Pit
|
100%
|
144
|
3.19
|
15
|
5,671
|
4.72
|
861
|
5,816
|
4.69
|
876
|
Meliadine
|
Underground
|
100%
|
722
|
7.92
|
184
|
14,212
|
6.58
|
3,007
|
14,933
|
6.65
|
3,191
|
Meliadine
Total
|
|
|
866
|
7.14
|
199
|
19,883
|
6.05
|
3,868
|
20,749
|
6.10
|
4,067
|
Upper
Beaver
|
Underground
|
100%
|
-
|
-
|
-
|
7,992
|
5.43
|
1,395
|
7,992
|
5.43
|
1,395
|
Kittila
|
Underground
|
100%
|
1,444
|
4.55
|
211
|
27,481
|
4.40
|
3,885
|
28,925
|
4.40
|
4,096
|
Pinos
Altos
|
Open Pit
|
100%
|
60
|
1.55
|
3
|
3,550
|
0.97
|
111
|
3,611
|
0.98
|
114
|
Pinos
Altos
|
Underground
|
100%
|
3,274
|
2.56
|
270
|
7,573
|
2.35
|
573
|
10,847
|
2.42
|
843
|
Pinos Altos
Total
|
|
|
3,334
|
2.55
|
273
|
11,124
|
1.91
|
684
|
14,457
|
2.06
|
957
|
Creston
Mascota
|
Open Pit
|
100%
|
1
|
5.55
|
0
|
757
|
2.49
|
61
|
758
|
2.49
|
61
|
La India
|
Open Pit
|
100%
|
279
|
0.49
|
4
|
20,152
|
0.75
|
486
|
20,432
|
0.75
|
490
|
Totals
|
|
|
38,361
|
1.91
|
2,357
|
198,569
|
3.01
|
19,227
|
236,930
|
2.83
|
21,585
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
LaRonde
|
Underground
|
100%
|
4,802
|
17.09
|
2,639
|
10,117
|
18.92
|
6,156
|
14,920
|
18.33
|
8,794
|
Pinos
Altos
|
Open Pit
|
100%
|
60
|
39.07
|
76
|
3,550
|
26.09
|
2,978
|
3,611
|
26.31
|
3,054
|
Pinos
Altos
|
Underground
|
100%
|
3,274
|
59.33
|
6,244
|
7,573
|
62.29
|
15,166
|
10,847
|
61.40
|
21,411
|
Pinos Altos
Total
|
subtotal
|
|
3,334
|
58.96
|
6,320
|
11,124
|
50.74
|
18,145
|
14,457
|
52.63
|
24,464
|
Creston
Mascota
|
Open Pit
|
100%
|
1
|
331.49
|
12
|
757
|
62.65
|
1,525
|
758
|
63.05
|
1,537
|
La India
|
Open Pit
|
100%
|
279
|
1.64
|
15
|
20,152
|
2.63
|
1,704
|
20,432
|
2.62
|
1,719
|
Totals
|
|
|
8,417
|
33.20
|
8,985
|
42,151
|
20.31
|
27,530
|
50,567
|
22.46
|
36,515
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
tonnes
Cu
|
000
Tonnes
|
%
|
tonnes
Cu
|
000
Tonnes
|
%
|
tonnes
Cu
|
LaRonde
|
Underground
|
100%
|
4,802
|
0.22
|
10,461
|
10,117
|
0.28
|
28,690
|
14,920
|
0.26
|
39,151
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
-
|
-
|
5,413
|
0.48
|
25,891
|
5,413
|
0.48
|
25,891
|
Upper
Beaver
|
Underground
|
100%
|
-
|
-
|
-
|
7,992
|
0.25
|
19,980
|
7,992
|
0.25
|
19,980
|
Totals
|
|
|
4,802
|
0.22
|
10,461
|
23,522
|
0.32
|
74,561
|
28,325
|
0.30
|
85,022
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
tonnes
Zn
|
000
Tonnes
|
%
|
tonnes
Zn
|
000
Tonnes
|
%
|
tonnes
Zn
|
LaRonde
|
Underground
|
100%
|
4,802
|
0.59
|
28,112
|
10,117
|
0.90
|
91,524
|
14,920
|
0.80
|
119,636
|
Totals
|
|
|
4,802
|
0.59
|
28,112
|
10,117
|
0.90
|
91,524
|
14,920
|
0.80
|
119,636
|
|
|
MINERAL
RESOURCES
|
As of December 31,
2019
|
OPERATION
|
|
|
MEASURED
|
INDICATED
|
MEASURED &
INDICATED
|
INFERRED
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
LaRonde
|
Underground
|
100%
|
-
|
-
|
-
|
4,436
|
3.42
|
488
|
4,436
|
3.42
|
488
|
5,940
|
4.47
|
854
|
LaRonde Zone
5
|
Underground
|
100%
|
-
|
-
|
-
|
8,466
|
2.29
|
624
|
8,466
|
2.29
|
624
|
4,701
|
4.04
|
611
|
Ellison
|
Underground
|
100%
|
-
|
-
|
-
|
722
|
3.04
|
71
|
722
|
3.04
|
71
|
5,466
|
2.62
|
461
|
Canadian
Malartic
|
Open Pit
|
50%
|
177
|
0.53
|
3
|
468
|
0.59
|
9
|
644
|
0.57
|
12
|
745
|
0.94
|
23
|
Canadian
Malartic
|
Underground
|
50%
|
1,843
|
1.51
|
89
|
6,252
|
1.64
|
330
|
8,096
|
1.61
|
420
|
1,609
|
1.35
|
70
|
Canadian Malartic
Total
|
|
|
2,020
|
1.42
|
92
|
6,720
|
1.57
|
339
|
8,740
|
1.54
|
431
|
2,354
|
1.22
|
92
|
Odyssey
|
Underground
|
50%
|
-
|
-
|
-
|
1,011
|
2.10
|
68
|
1,011
|
2.10
|
68
|
11,684
|
2.22
|
833
|
East
Malartic
|
Underground
|
50%
|
-
|
-
|
-
|
4,962
|
2.18
|
347
|
4,962
|
2.18
|
347
|
39,382
|
2.05
|
2,596
|
East
Gouldie
|
Underground
|
50%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
12,760
|
3.34
|
1,369
|
Goldex
|
Underground
|
100%
|
12,360
|
1.86
|
739
|
26,838
|
1.47
|
1,272
|
39,197
|
1.60
|
2,011
|
25,180
|
1.50
|
1,212
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
-
|
-
|
4,870
|
0.63
|
98
|
4,870
|
0.63
|
98
|
-
|
-
|
-
|
Zulapa
|
Open Pit
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
391
|
3.14
|
39
|
Meadowbank
|
Open Pit
|
100%
|
-
|
-
|
-
|
1,145
|
2.46
|
90
|
1,145
|
2.46
|
90
|
4
|
2.06
|
0
|
Amaruq
|
Open Pit
|
100%
|
-
|
-
|
-
|
6,679
|
3.20
|
687
|
6,679
|
3.20
|
687
|
568
|
4.78
|
87
|
Amaruq
|
Underground
|
100%
|
-
|
-
|
-
|
3,102
|
3.84
|
383
|
3,102
|
3.84
|
383
|
8,073
|
5.52
|
1,432
|
Amaruq
Total
|
|
|
-
|
-
|
-
|
9,782
|
3.40
|
1,070
|
9,782
|
3.40
|
1,070
|
8,642
|
5.47
|
1,520
|
Meadowbank Complex
Total
|
|
|
-
|
-
|
-
|
10,927
|
3.30
|
1,160
|
10,927
|
3.30
|
1,160
|
8,645
|
5.47
|
1,520
|
Meliadine
|
Open Pit
|
100%
|
-
|
-
|
-
|
11,065
|
3.11
|
1,106
|
11,065
|
3.11
|
1,106
|
1,321
|
4.42
|
188
|
Meliadine
|
Underground
|
100%
|
72
|
4.00
|
9
|
13,583
|
3.85
|
1,683
|
13,655
|
3.85
|
1,692
|
13,290
|
5.72
|
2,443
|
Meliadine
Total
|
|
|
72
|
4.00
|
9
|
24,648
|
3.52
|
2,789
|
24,721
|
3.52
|
2,799
|
14,611
|
5.60
|
2,631
|
Hammond
Reef
|
Open Pit
|
100%
|
165,662
|
0.70
|
3,724
|
42,754
|
0.57
|
777
|
208,416
|
0.67
|
4,501
|
501
|
0.74
|
12
|
Upper
Beaver
|
Underground
|
100%
|
-
|
-
|
-
|
3,636
|
3.45
|
403
|
3,636
|
3.45
|
403
|
8,688
|
5.07
|
1,416
|
AK
Project
|
Underground
|
100%
|
-
|
-
|
-
|
1,268
|
6.51
|
265
|
1,268
|
6.51
|
265
|
2,373
|
5.32
|
406
|
Anoki-McBean
|
Underground
|
100%
|
-
|
-
|
-
|
1,868
|
5.33
|
320
|
1,868
|
5.33
|
320
|
2,526
|
4.70
|
382
|
Upper
Canada
|
Open Pit
|
100%
|
-
|
-
|
-
|
1,842
|
1.72
|
102
|
1,842
|
1.72
|
102
|
1,034
|
1.38
|
46
|
Upper
Canada
|
Underground
|
100%
|
-
|
-
|
-
|
7,808
|
2.36
|
592
|
7,808
|
2.36
|
592
|
16,037
|
3.34
|
1,723
|
Upper Canada
Total
|
|
|
-
|
-
|
-
|
9,650
|
2.23
|
693
|
9,650
|
2.23
|
693
|
17,071
|
3.22
|
1,768
|
Kittila
|
Open Pit
|
100%
|
-
|
-
|
-
|
229
|
3.41
|
25
|
229
|
3.41
|
25
|
373
|
3.89
|
47
|
Kittila
|
Underground
|
100%
|
2,895
|
2.54
|
237
|
15,022
|
2.60
|
1,258
|
17,916
|
2.59
|
1,495
|
13,447
|
3.90
|
1,688
|
Kittila
Total
|
|
|
2,895
|
2.54
|
237
|
15,251
|
2.62
|
1,283
|
18,145
|
2.60
|
1,520
|
13,820
|
3.90
|
1,735
|
Kuotko
|
Open Pit
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
284
|
3.18
|
29
|
Kylmäkangas
|
Underground
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,896
|
4.11
|
250
|
Barsele
|
Open Pit
|
55%
|
-
|
-
|
-
|
3,178
|
1.08
|
111
|
3,178
|
1.08
|
111
|
2,260
|
1.25
|
91
|
Barsele
|
Underground
|
55%
|
-
|
-
|
-
|
1,158
|
1.77
|
66
|
1,158
|
1.77
|
66
|
13,552
|
2.10
|
914
|
Barsele
Total
|
|
|
-
|
-
|
-
|
4,335
|
1.27
|
176
|
4,335
|
1.27
|
176
|
15,811
|
1.98
|
1,005
|
Pinos
Altos
|
Open Pit
|
100%
|
-
|
-
|
-
|
2,728
|
0.92
|
80
|
2,728
|
0.92
|
80
|
981
|
0.92
|
29
|
Pinos
Altos
|
Underground
|
100%
|
-
|
-
|
-
|
16,853
|
1.80
|
977
|
16,853
|
1.80
|
977
|
6,051
|
2.09
|
407
|
Pinos Altos
Total
|
|
|
-
|
-
|
-
|
19,581
|
1.68
|
1,057
|
19,581
|
1.68
|
1,057
|
7,032
|
1.93
|
435
|
Creston
Mascota
|
Open Pit
|
100%
|
-
|
-
|
-
|
988
|
0.75
|
24
|
988
|
0.75
|
24
|
281
|
1.10
|
10
|
La India
|
Open Pit
|
100%
|
10,840
|
0.60
|
209
|
1,402
|
0.64
|
29
|
12,241
|
0.60
|
238
|
809
|
0.57
|
15
|
Tarachi
|
Open Pit
|
100%
|
-
|
-
|
-
|
22,665
|
0.40
|
294
|
22,665
|
0.40
|
294
|
6,476
|
0.33
|
68
|
Chipriona
|
Open Pit
|
100%
|
-
|
-
|
-
|
1,255
|
1.11
|
45
|
1,255
|
1.11
|
45
|
10,744
|
0.69
|
238
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
-
|
-
|
8,176
|
1.21
|
318
|
8,176
|
1.21
|
318
|
8,326
|
1.21
|
325
|
Santa
Gertrudis
|
Open Pit
|
100%
|
-
|
-
|
-
|
5,065
|
0.64
|
104
|
5,065
|
0.64
|
104
|
19,054
|
1.17
|
717
|
Santa
Gertrudis
|
Underground
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,064
|
4.58
|
451
|
Santa Gertrudis
Total
|
|
|
-
|
-
|
-
|
5,065
|
0.64
|
104
|
5,065
|
0.64
|
104
|
22,118
|
1.64
|
1,168
|
Totals
|
|
|
193,848
|
0.80
|
5,010
|
231,491
|
1.75
|
13,045
|
425,340
|
1.32
|
18,055
|
249,869
|
2.67
|
21,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
LaRonde
|
Underground
|
100%
|
-
|
-
|
-
|
4,436
|
27.33
|
3,897
|
4,436
|
27.33
|
3,897
|
5,940
|
14.95
|
2,855
|
Kylmäkangas
|
Underground
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,896
|
31.11
|
1,896
|
Pinos
Altos
|
Open Pit
|
100%
|
-
|
-
|
-
|
2,728
|
24.60
|
2,157
|
2,728
|
24.60
|
2,157
|
981
|
25.38
|
801
|
Pinos
Altos
|
Underground
|
100%
|
-
|
-
|
-
|
16,853
|
43.25
|
23,437
|
16,853
|
43.25
|
23,437
|
6,051
|
42.24
|
8,218
|
Pinos Altos
Total
|
|
|
-
|
-
|
-
|
19,581
|
40.66
|
25,594
|
19,581
|
40.66
|
25,594
|
7,032
|
39.89
|
9,018
|
Creston
Mascota
|
Open Pit
|
100%
|
-
|
-
|
-
|
988
|
7.88
|
250
|
988
|
7.88
|
250
|
281
|
5.05
|
46
|
La India
|
Open Pit
|
100%
|
10,840
|
3.24
|
1,130
|
1,402
|
3.17
|
143
|
12,241
|
3.23
|
1,273
|
809
|
3.56
|
93
|
Chipriona
|
Open Pit
|
100%
|
-
|
-
|
-
|
1,255
|
50.99
|
2,057
|
1,255
|
50.99
|
2,057
|
10,744
|
85.44
|
29,511
|
El Barqueño
Silver
|
Open Pit
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,998
|
129.49
|
16,646
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
-
|
-
|
8,176
|
4.63
|
1,216
|
8,176
|
4.63
|
1,216
|
8,326
|
17.25
|
4,617
|
Totals
|
|
|
10,840
|
3.24
|
1,130
|
35,836
|
28.78
|
33,157
|
46,676
|
22.85
|
34,287
|
39,025
|
51.55
|
64,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
LaRonde
|
Underground
|
100%
|
-
|
-
|
-
|
4,436
|
0.19
|
8,629
|
4,436
|
0.19
|
8,629
|
5,940
|
0.23
|
13,751
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
-
|
-
|
4,870
|
0.37
|
18,246
|
4,870
|
0.37
|
18,246
|
-
|
-
|
-
|
Upper
Beaver
|
Underground
|
100%
|
-
|
-
|
-
|
3,636
|
0.14
|
5,135
|
3,636
|
0.14
|
5,135
|
8,688
|
0.20
|
17,284
|
Chipriona
|
Open Pit
|
100%
|
-
|
-
|
-
|
1,255
|
0.03
|
359
|
1,255
|
0.03
|
359
|
10,744
|
0.14
|
15,411
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
-
|
-
|
8,176
|
0.18
|
15,028
|
8,176
|
0.18
|
15,028
|
8,326
|
0.22
|
18,210
|
Totals
|
|
|
-
|
-
|
-
|
22,372
|
0.21
|
47,397
|
22,372
|
0.21
|
47,397
|
33,697
|
0.19
|
64,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
LaRonde
|
Underground
|
100%
|
-
|
-
|
-
|
4,436
|
1.15
|
51,161
|
4,436
|
1.15
|
51,161
|
5,940
|
0.64
|
38,066
|
Chipriona
|
Open Pit
|
100%
|
-
|
-
|
-
|
1,255
|
1.36
|
17,031
|
1,255
|
1.36
|
17,031
|
10,744
|
0.81
|
86,897
|
Totals
|
|
|
-
|
-
|
-
|
5,691
|
1.20
|
68,192
|
5,691
|
1.20
|
68,192
|
16,684
|
0.75
|
124,963
|
Mineral reserves are not a subset of mineral resources.
Tonnage amounts and contained metal amounts set out in this table
have been rounded to the nearest thousand, so aggregate amounts may
differ from column totals. Mineral reserves are
in-situ, taking into account all mining recoveries, before mill
or heap leach recoveries.
In prior periods, mineral 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 mineral reserve
determination, which the Staff of the SEC has interpreted to mean
historic three-year average prices. Given the current
commodity price environment, Agnico Eagle uses price assumptions
that are below the three-year averages.
Assumptions used for the December 31,
2019 mineral reserves estimate at all mines and advanced
projects reported by the Company
|
Metal
prices
|
Exchange
rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
peso per
US$1.00
|
US$ per
€1.00
|
Long-life operations
and
projects
|
$1,200
|
$15.50
|
$2.50
|
$1.00
|
$1.25
|
MXP17.00
|
$1.15
|
Short-life
operations
– Creston Mascota
(Bravo) and Sinter
satellite operations
at Pinos Altos
|
$1.30
|
MXP18.00
|
Not
applicable
|
Upper Beaver*,
Canadian Malartic mine**
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
*The Upper Beaver
project has a net smelter return (NSR) cut-off value of
C$125/tonne
|
**The Canadian
Malartic mine uses a cut-off grade between 0.40 g/t and 0.43 g/t
gold (depending on the deposit)
|
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors, together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
Additional Information
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)), as well as other information, 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,
MD&A and Form 40-F.
Property/Project
name and location
|
Date of most
recent Technical Report
(NI 43-101) filed on SEDAR
|
LaRonde, LaRonde Zone
5 & Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
June 16,
2014
|
Kittila, Kuotko and
Kylmakangas, Finland
|
March 4,
2010
|
Meadowbank Gold
Complex including the Amaruq Satellite Mine
Development, Nunavut, Canada
|
February 14,
2018
|
Goldex, Quebec,
Canada
|
October 14,
2012
|
Meliadine, Nunavut,
Canada
|
February 11,
2015
|
Hammond Reef,
Ontario, Canada
|
July 2,
2013
|
Upper Beaver
(Kirkland Lake property), Ontario, Canada
|
November 5,
2012
|
Pinos Altos and
Creston Mascota, Mexico
|
March 25,
2009
|
La India,
Mexico
|
August 31,
2012
|
Appendix
LaRonde 3 exploration drill collar coordinates
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
LR-290-104
|
5346922
|
689272
|
-2,526
|
171
|
-69
|
780
|
LR-290-107
|
5346922
|
689272
|
-2,526
|
173
|
-65
|
737
|
*Coordinate System
UTM Nad 83 Zone 17
|
Goldex mine exploration drill collar coordinates
|
Drill collar
coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
GD90-131
|
5331898
|
286752
|
-593
|
207
|
-24.0
|
210
|
GD90-139
|
5331895
|
286765
|
-594
|
199
|
-47.0
|
195
|
GD95-065
|
5331920
|
286711
|
-638
|
236
|
-27.0
|
210
|
GD100-172
|
5331752
|
286909
|
-681
|
188
|
-6.0
|
141
|
GD100-304
|
5331752
|
286909
|
-681
|
239
|
27.0
|
176
|
GD100-318
|
5331752
|
286909
|
-681
|
251
|
22.0
|
126
|
GD106-003
|
5331746
|
286799
|
-754
|
004
|
27.0
|
33
|
GD106-033
|
5331690
|
286927
|
-758
|
191
|
26.0
|
57
|
GD109-003
|
5331912
|
286761
|
-789
|
219
|
6.0
|
132
|
GD110-245
|
5331795
|
287021
|
-816
|
155
|
-24.0
|
264
|
GD110-267
|
5331858
|
286816
|
-792
|
255
|
-8.0
|
150
|
GD120-299
|
5331827
|
286704
|
-923
|
028
|
-8.0
|
341
|
GD120-300
|
5331827
|
286704
|
-924
|
028
|
-14.0
|
364
|
GD120-313
|
5331729
|
286848
|
-944
|
012
|
-15.0
|
464
|
GD120-324
|
5331730
|
286846
|
-944
|
004
|
-14.0
|
445
|
GD120-325
|
5331730
|
286846
|
-944
|
004
|
-21.0
|
442
|
GD120-331
|
5331792
|
286755
|
-930
|
024
|
-10.0
|
368
|
GD120-333
|
5331792
|
286755
|
-932
|
024
|
-21.0
|
435
|
GD120-335
|
5331792
|
286755
|
-930
|
027
|
-11.0
|
377
|
GD125-003
|
5331685
|
286911
|
-958
|
002
|
-18.0
|
514
|
GD125-024
|
5331685
|
286911
|
-957
|
008
|
-25.0
|
527
|
*Coordinate System
NAD83, UTM Zone 18N
|
Kirkland Lake project
exploration drill collar coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
KLUB19-525
|
5335526
|
591826
|
283
|
150
|
-53
|
357
|
KLUB19-530
|
5335629
|
591809
|
284
|
135
|
-47
|
225
|
KLUB19-549
|
5335450
|
591804
|
295
|
128
|
-67
|
353
|
KLUB19-552
|
5335866
|
591780
|
304
|
156
|
-62
|
508
|
KLUB19-554
|
5335761
|
591456
|
305
|
134
|
-59
|
420
|
KLUC19-535
|
5332680
|
586031
|
370
|
348
|
-51
|
400
|
KLUC19-538
|
5331928
|
586182
|
328
|
300
|
-60
|
739
|
KLUC19-541
|
5332670
|
585765
|
354
|
345
|
-46
|
240
|
KLUC19-542
|
5332527
|
585333
|
353
|
347
|
-44
|
477
|
KLUC19-546
|
5332296
|
585615
|
344
|
122
|
-61
|
1,026
|
KLUC19-547
|
5333149
|
587071
|
333
|
137
|
-64
|
846
|
KLUC19-551
|
5332832
|
586930
|
339
|
160
|
-56
|
588
|
KLUC19-552
|
5332515
|
587757
|
338
|
341
|
-57
|
600
|
KLUC19-553
|
5332873
|
586791
|
344
|
163
|
-69
|
1,000
|
*Coordinate System NAD
1983 UTM Zone 17N
|
Drill collar coordinates of selected drill holes at Kittila
mine
|
Drill collar
coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
RIE19-614
|
7538810
|
2558713
|
-802
|
080
|
-30
|
357
|
ROD19-701
|
7538198
|
2558629
|
-955
|
091
|
-80
|
1,118
|
VUG19-510
|
7539200
|
2558662
|
-511
|
092
|
6
|
222
|
VUG19-511
|
7539200
|
2558662
|
-511
|
106
|
6
|
266
|
VUG19-513
|
7539199
|
2558662
|
-511
|
114
|
-6
|
237
|
VUG19-516
|
7539200
|
2558662
|
-510
|
093
|
21
|
233
|
VUG19-517
|
7539199
|
2558662
|
-510
|
111
|
21
|
272
|
*Finnish Coordinate
System KKJ Zone 2
|
Reyna East Zone and Cubiro Deposit at Pinos Altos mine exploration drill collar
coordinates
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
RP19-228
|
3131014
|
767364
|
2,136
|
200
|
-70
|
249
|
RP19-233
|
3130970
|
767409
|
2,140
|
200
|
-65
|
210
|
RP19-235
|
3130906
|
767413
|
2,153
|
200
|
-70
|
153
|
RP19-244
|
3130427
|
768063
|
2,201
|
200
|
-55
|
90
|
CBUG19-002
|
3136388
|
758841
|
1,230
|
050
|
5
|
141
|
CBUG19-006
|
3136388
|
758841
|
1,231
|
050
|
25
|
216
|
CBUG19-011
|
3136471
|
758685
|
1,217
|
255
|
-15
|
171
|
CBUG19-013
|
3136293
|
758945
|
1,249
|
000
|
-48
|
177
|
CBUG19-019
|
3136620
|
758530
|
1,214
|
235
|
—
|
255
|
*Coordinates of
drill holes are in UTM NAD27 12N.
|
La India property
exploration drill hole collar coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
CHP19-099
|
3180731
|
706334
|
1,560
|
225
|
-45
|
201
|
CHP19-103
|
3181303
|
706598
|
1,537
|
225
|
-45
|
573
|
CHP19-104
|
3180342
|
707301
|
1,593
|
225
|
-45
|
408
|
CHP19-119
|
3180164
|
707217
|
1,538
|
230
|
-50
|
192
|
CHP19-123
|
3180099
|
707289
|
1,531
|
224
|
-53
|
222
|
*Coordinates are in
UTM NAD27 12N
|
Collar coordinates of selected recent exploration drill holes
at the Santa Gertrudis
project
|
Drill collar
coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
SGE19-301
|
3392761
|
542437
|
1,322
|
180
|
-50
|
753
|
SGE19-312
|
3392426
|
542937
|
1,371
|
180
|
-55
|
388
|
SGE19-314
|
3392085
|
542775
|
1,237
|
140
|
-50
|
300
|
SGE19-315
|
3392679
|
542336
|
1,337
|
180
|
-65
|
550
|
SGE19-317
|
3392722
|
542191
|
1,309
|
180
|
-50
|
600
|
SGE19-320
|
3392929
|
542484
|
1,317
|
190
|
-60
|
850
|
SGE19-328
|
3392189
|
542749
|
1,269
|
180
|
-45
|
450
|
*Coordinate System
UTM WGS84 12N Zone
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Operating
margin(i) by mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
111,865
|
|
$
|
58,697
|
|
$
|
337,192
|
|
$
|
288,379
|
LaRonde Zone 5
mine
|
12,954
|
|
5,600
|
|
39,153
|
|
8,336
|
Lapa mine
|
—
|
|
3,868
|
|
2,033
|
|
11,927
|
Goldex
mine
|
31,200
|
|
19,318
|
|
114,487
|
|
73,893
|
Meadowbank
complex
|
3,303
|
|
27,985
|
|
40,804
|
|
111,995
|
Meliadine
mine
|
61,970
|
|
—
|
|
127,326
|
|
—
|
Canadian Malartic
mine(ii)
|
73,015
|
|
60,346
|
|
258,139
|
|
248,765
|
Kittila
mine
|
39,666
|
|
22,516
|
|
117,806
|
|
80,252
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
28,004
|
|
36,582
|
|
119,387
|
|
132,493
|
Creston Mascota
mine
|
4,041
|
|
4,794
|
|
42,222
|
|
17,403
|
La India
mine
|
12,112
|
|
13,643
|
|
48,638
|
|
57,423
|
Total operating
margin(i)
|
378,130
|
|
253,349
|
|
1,247,187
|
|
1,030,866
|
Impairment (reversal)
loss
|
(345,821)
|
|
389,693
|
|
(345,821)
|
|
389,693
|
Amortization of
property, plant and mine development
|
150,319
|
|
137,235
|
|
546,057
|
|
553,933
|
Exploration,
corporate and other
|
69,687
|
|
113,694
|
|
308,209
|
|
346,292
|
Income (loss) before
income and mining taxes
|
503,945
|
|
(387,273)
|
|
738,742
|
|
(259,052)
|
Income and mining
taxes
|
172,250
|
|
6,383
|
|
265,576
|
|
67,649
|
Net income (loss) for
the period
|
$
|
331,695
|
|
$
|
(393,656)
|
|
$
|
473,166
|
|
$
|
(326,701)
|
Net income (loss) per
share — basic (US$)
|
$
|
1.39
|
|
$
|
(1.68)
|
|
$
|
2.00
|
|
$
|
(1.40)
|
Net income (loss) per
share — diluted (US$)
|
$
|
1.38
|
|
$
|
(1.68)
|
|
$
|
1.99
|
|
$
|
(1.40)
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
257,468
|
|
$
|
140,284
|
|
$
|
881,692
|
|
$
|
605,650
|
Cash used in
investing activities
|
$
|
(167,211)
|
|
$
|
(336,376)
|
|
$
|
(873,884)
|
|
$
|
(1,204,368)
|
Cash (used in)
provided by financing activities
|
$
|
(28,091)
|
|
$
|
(18,099)
|
|
$
|
10,610
|
|
$
|
274,099
|
|
|
|
|
|
|
|
|
Realized prices
(US$):
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,489
|
|
$
|
1,235
|
|
$
|
1,406
|
|
$
|
1,266
|
Silver
(per ounce)
|
$
|
17.55
|
|
$
|
14.53
|
|
$
|
16.38
|
|
$
|
15.51
|
Zinc
(per tonne)
|
$
|
2,398
|
|
$
|
2,568
|
|
$
|
2,607
|
|
$
|
3,034
|
Copper
(per tonne)
|
$
|
5,948
|
|
$
|
6,126
|
|
$
|
5,892
|
|
$
|
6,543
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
97,470
|
|
81,022
|
|
343,154
|
|
343,686
|
LaRonde Zone 5
mine
|
15,234
|
|
10,196
|
|
59,830
|
|
18,620
|
Lapa mine
|
—
|
|
7,307
|
|
5
|
|
34,026
|
Goldex
mine
|
34,963
|
|
31,508
|
|
140,884
|
|
121,167
|
Meadowbank
complex
|
61,660
|
|
59,664
|
|
193,489
|
|
248,997
|
Meliadine
mine
|
81,607
|
|
—
|
|
238,394
|
|
—
|
Canadian Malartic
mine(ii)
|
85,042
|
|
84,732
|
|
334,596
|
|
348,600
|
Kittila
mine
|
55,345
|
|
49,353
|
|
186,101
|
|
188,979
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
35,822
|
|
49,170
|
|
155,124
|
|
181,057
|
Creston Mascota
mine
|
6,919
|
|
11,452
|
|
48,380
|
|
40,180
|
La India
mine
|
20,616
|
|
26,308
|
|
82,190
|
|
101,357
|
Total gold
(ounces)
|
494,678
|
|
410,712
|
|
1,782,147
|
|
1,626,669
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
263
|
|
205
|
|
883
|
|
1,040
|
LaRonde Zone 5
mine
|
5
|
|
1
|
|
12
|
|
2
|
Lapa mine
|
—
|
|
1
|
|
1
|
|
2
|
Goldex
mine
|
1
|
|
—
|
|
2
|
|
1
|
Meadowbank
complex
|
15
|
|
28
|
|
86
|
|
171
|
Meliadine
mine
|
7
|
|
—
|
|
18
|
|
—
|
Canadian Malartic
mine(ii)
|
114
|
|
104
|
|
421
|
|
437
|
Kittila
mine
|
3
|
|
4
|
|
13
|
|
13
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
519
|
|
631
|
|
2,161
|
|
2,368
|
Creston Mascota
mine
|
97
|
|
83
|
|
580
|
|
310
|
La India
mine
|
27
|
|
54
|
|
133
|
|
180
|
Total silver
(thousands of ounces)
|
1,051
|
|
1,111
|
|
4,310
|
|
4,524
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,445
|
|
3,168
|
|
13,161
|
|
7,864
|
Copper
(tonnes)
|
929
|
|
914
|
|
3,397
|
|
4,193
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Payable metal
sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
104,197
|
|
81,831
|
|
360,698
|
|
364,816
|
LaRonde Zone 5
mine
|
17,236
|
|
9,631
|
|
56,998
|
|
17,469
|
Lapa mine
|
—
|
|
11,640
|
|
3,777
|
|
31,874
|
Goldex
mine
|
36,357
|
|
31,748
|
|
141,385
|
|
120,621
|
Meadowbank
complex
|
53,710
|
|
58,610
|
|
191,396
|
|
253,014
|
Meliadine
mine
|
81,328
|
|
—
|
|
213,290
|
|
—
|
Canadian Malartic
mine(ii)(iv)
|
83,215
|
|
84,352
|
|
315,456
|
|
330,620
|
Kittila
mine
|
52,595
|
|
47,993
|
|
184,440
|
|
187,871
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
36,260
|
|
50,717
|
|
155,750
|
|
185,444
|
Creston Mascota
mine
|
7,310
|
|
10,409
|
|
50,605
|
|
39,592
|
La India
mine
|
19,225
|
|
25,067
|
|
81,539
|
|
98,464
|
Total gold
(ounces)
|
491,433
|
|
411,998
|
|
1,755,334
|
|
1,629,785
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
264
|
|
207
|
|
883
|
|
1,043
|
LaRonde Zone 5
mine
|
4
|
|
—
|
|
11
|
|
1
|
Lapa mine
|
—
|
|
1
|
|
2
|
|
2
|
Goldex
mine
|
1
|
|
1
|
|
2
|
|
2
|
Meadowbank
complex
|
15
|
|
26
|
|
84
|
|
170
|
Meliadine
mine
|
15
|
|
—
|
|
16
|
|
—
|
Canadian Malartic
mine(ii)(iv)
|
105
|
|
90
|
|
386
|
|
394
|
Kittila
mine
|
5
|
|
4
|
|
14
|
|
13
|
Southern
Business
|
|
|
|
|
|
|
Pinos Altos
mine
|
522
|
|
644
|
|
2,158
|
|
2,442
|
Creston Mascota
mine
|
100
|
|
75
|
|
575
|
|
301
|
La India
mine
|
26
|
|
51
|
|
140
|
|
176
|
Total silver
(thousands of ounces):
|
1,057
|
|
1,099
|
|
4,271
|
|
4,544
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
1,632
|
|
1,896
|
|
12,292
|
|
8,523
|
Copper
(tonnes)
|
945
|
|
926
|
|
3,390
|
|
4,195
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — co-product basis
(US$)(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
586
|
|
$
|
649
|
|
$
|
660
|
|
$
|
634
|
LaRonde Zone 5
mine
|
776
|
|
642
|
|
725
|
|
733
|
Lapa
mine(vi)
|
—
|
|
715
|
|
—
|
|
873
|
Goldex
mine
|
640
|
|
624
|
|
584
|
|
646
|
Meadowbank
complex(vii)
|
1,410
|
|
740
|
|
1,161
|
|
825
|
Meliadine
mine(viii)
|
715
|
|
—
|
|
750
|
|
—
|
Canadian Malartic
mine(ii)(ix)
|
655
|
|
581
|
|
626
|
|
579
|
Kittila
mine
|
757
|
|
788
|
|
737
|
|
854
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,004
|
|
707
|
|
867
|
|
749
|
Creston Mascota
mine
|
1,300
|
|
844
|
|
754
|
|
961
|
La India
mine
|
912
|
|
724
|
|
849
|
|
712
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
805
|
|
$
|
681
|
|
$
|
745
|
|
$
|
710
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — by-product basis
(US$)(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
422
|
|
$
|
441
|
|
$
|
464
|
|
$
|
445
|
LaRonde Zone 5
mine
|
771
|
|
641
|
|
722
|
|
732
|
Lapa mine
(vi)
|
—
|
|
713
|
|
—
|
|
872
|
Goldex
mine
|
640
|
|
624
|
|
584
|
|
646
|
Meadowbank
complex(vii)
|
1,405
|
|
734
|
|
1,152
|
|
814
|
Meliadine
mine(viii)
|
712
|
|
—
|
|
748
|
|
—
|
Canadian Malartic
mine(ii)(ix)
|
630
|
|
562
|
|
606
|
|
559
|
Kittila
mine
|
756
|
|
787
|
|
736
|
|
853
|
Southern
Business
|
|
|
|
|
|
|
Pinos Altos
mine
|
758
|
|
518
|
|
639
|
|
548
|
Creston Mascota
mine
|
1,073
|
|
736
|
|
554
|
|
841
|
La India
mine
|
892
|
|
694
|
|
823
|
|
685
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
745
|
|
$
|
608
|
|
$
|
673
|
|
$
|
637
|
Notes:
|
|
|
|
|
|
|
|
(i) Operating margin
is calculated as revenues from mining operations less production
costs.
|
(ii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(iii) Payable
production (a non-GAAP non-financial performance measure) is
the quantity of mineral produced during a period contained in
products that have been or will be sold by the Company, whether
such products are sold during the period or held as inventories at
the end of the period.
|
(iv) The Canadian
Malartic mine's payable metal sold excludes the 5.0% net smelter
return royalty transferred to Osisko Gold Royalties Ltd., in
connection with the Company's acquisition of its 50% interest of
the Canadian Malartic mine.
|
(v) Total cash costs
per ounce of gold produced is not a recognized measure under IFRS
and this data may not be comparable to data reported by other gold
producers. Total cash costs per ounce of gold produced is presented
on both a by-product basis (deducting by-product metal revenues
from production costs) and co-product basis (without deducting
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 for by-product metal revenues, inventory production
costs, smelting, refining and marketing charges, 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 and other adjustments 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 analysis
in order to quantify the effects of fluctuating metal prices and
exchange rates.
|
(vi) The Lapa mine's
cost calculations per ounce of gold produced for the year ended
December 31, 2019 exclude 5 ounces of payable gold production,
which were credited to the Company as a result of final
refining reconciliation following the cessation of mining and
processing operations at the Lapa mine.
|
(vii) The Meadowbank
Complex's cost calculations per ounce of gold produced for the year
ended December 31, 2019 exclude 35,281 ounces of payable gold
production which were produced prior to the achievement of
commercial production at the Amaruq satellite deposit on September
30, 2019.
|
(viii) The Meliadine
mine's cost calculations per ounce of gold produced for the year
ended December 31, 2019 exclude 47,281 ounces of payable gold
production which were produced prior to the achievement of
commercial production on May 14, 2019.
|
(ix) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three months and year ended December 31, 2019 exclude 3,137
ounces of payable gold production which were produced during these
periods as commercial production at the Barnat deposit has not yet
been achieved.
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
(thousands of
United States dollars, except share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
As at
December 31,
2019
|
|
As at
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
321,897
|
|
$
|
301,826
|
Short-term
investments
|
6,005
|
|
6,080
|
Trade
receivables
|
8,320
|
|
10,055
|
Inventories
|
580,068
|
|
494,150
|
Income taxes
recoverable
|
2,281
|
|
17,805
|
Equity
securities
|
86,252
|
|
76,532
|
Fair value of
derivative financial instruments
|
9,519
|
|
180
|
Other current
assets
|
179,218
|
|
165,824
|
Total current
assets
|
1,193,560
|
|
1,072,452
|
Non-current
assets:
|
|
|
|
Goodwill
|
407,792
|
|
407,792
|
Property, plant and
mine development
|
7,003,665
|
|
6,234,302
|
Other
assets
|
184,868
|
|
138,297
|
Total
assets
|
$
|
8,789,885
|
|
$
|
7,852,843
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
345,572
|
|
$
|
310,597
|
Reclamation
provision
|
12,455
|
|
5,411
|
Interest
payable
|
16,752
|
|
16,531
|
Income taxes
payable
|
26,166
|
|
18,671
|
Lease
obligations
|
14,693
|
|
1,914
|
Current portion of
long-term debt
|
360,000
|
|
—
|
Fair value of
derivative financial instruments
|
—
|
|
8,325
|
Total current
liabilities
|
775,638
|
|
361,449
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,364,108
|
|
1,721,308
|
Lease
obligations
|
102,135
|
|
—
|
Reclamation
provision
|
427,346
|
|
380,747
|
Deferred income and
mining tax liabilities
|
948,142
|
|
796,708
|
Other
liabilities
|
61,002
|
|
42,619
|
Total
liabilities
|
3,678,371
|
|
3,302,831
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding — 240,167,790 common shares issued, less 548,755
shares held in trust
|
5,589,352
|
|
5,362,169
|
Stock
options
|
180,160
|
|
197,597
|
Contributed
surplus
|
37,254
|
|
37,254
|
Deficit
|
(647,330)
|
|
(988,913)
|
Other
reserves
|
(47,922)
|
|
(58,095)
|
Total
equity
|
5,111,514
|
|
4,550,012
|
Total liabilities and
equity
|
$
|
8,789,885
|
|
$
|
7,852,843
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
753,099
|
|
$
|
537,821
|
|
$
|
2,494,892
|
|
$
|
2,191,221
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES
AND OTHER INCOME
|
|
|
|
|
|
|
|
Production(i)
|
374,969
|
|
284,472
|
|
1,247,705
|
|
1,160,355
|
Exploration and
corporate development
|
23,750
|
|
27,572
|
|
104,779
|
|
137,670
|
Amortization of
property, plant and mine development
|
150,319
|
|
137,235
|
|
546,057
|
|
553,933
|
General and
administrative
|
35,432
|
|
31,361
|
|
120,987
|
|
124,873
|
Finance
costs
|
26,285
|
|
25,544
|
|
105,082
|
|
96,567
|
(Gain) loss on
derivative financial instruments
|
(6,828)
|
|
11,074
|
|
(17,124)
|
|
6,065
|
Environmental
remediation
|
2,719
|
|
14,167
|
|
2,804
|
|
14,420
|
Impairment (reversal)
loss
|
(345,821)
|
|
389,693
|
|
(345,821)
|
|
389,693
|
Foreign currency
translation (gain) loss
|
(140)
|
|
2,657
|
|
4,850
|
|
1,991
|
Other (income)
expenses
|
(11,531)
|
|
1,319
|
|
(13,169)
|
|
(35,294)
|
Income (loss) before
income and mining taxes
|
503,945
|
|
(387,273)
|
|
738,742
|
|
(259,052)
|
Income and mining
taxes expense
|
172,250
|
|
6,383
|
|
265,576
|
|
67,649
|
Net income (loss) for
the period
|
$
|
331,695
|
|
$
|
(393,656)
|
|
$
|
473,166
|
|
$
|
(326,701)
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - basic
|
$
|
1.39
|
|
$
|
(1.68)
|
|
$
|
2.00
|
|
$
|
(1.40)
|
Net income (loss) per
share - diluted
|
$
|
1.38
|
|
$
|
(1.68)
|
|
$
|
1.99
|
|
$
|
(1.40)
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
239,274
|
|
234,096
|
|
236,934
|
|
233,251
|
Diluted
|
240,952
|
|
234,096
|
|
238,230
|
|
233,251
|
|
|
|
|
|
|
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
|
|
|
Year
Ended
|
|
|
December
31,
|
|
|
December
31,
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
$
|
331,695
|
|
|
$
|
(393,656)
|
|
|
$
|
473,166
|
|
|
$
|
(326,701)
|
|
Add (deduct) items
not affecting cash:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
150,319
|
|
|
137,235
|
|
|
546,057
|
|
|
553,933
|
|
Deferred income and
mining taxes
|
124,491
|
|
|
(22,089)
|
|
|
152,595
|
|
|
(30,961)
|
|
Stock-based
compensation
|
14,994
|
|
|
11,870
|
|
|
54,261
|
|
|
50,658
|
|
Impairment (reversal)
loss
|
(345,821)
|
|
|
389,693
|
|
|
(345,821)
|
|
|
389,693
|
|
Foreign currency
translation (gain) loss
|
(140)
|
|
|
2,657
|
|
|
4,850
|
|
|
1,991
|
|
Other
|
(10,587)
|
|
|
26,903
|
|
|
(10,707)
|
|
|
11,610
|
|
Adjustment for
settlement of reclamation provision
|
(1,109)
|
|
|
(2,170)
|
|
|
(7,108)
|
|
|
(4,685)
|
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
|
|
|
|
Trade
receivables
|
278
|
|
|
(1,429)
|
|
|
1,735
|
|
|
1,945
|
|
Income
taxes
|
23,406
|
|
|
25,359
|
|
|
22,223
|
|
|
(2,291)
|
|
Inventories
|
(10,362)
|
|
|
(13,418)
|
|
|
(91,436)
|
|
|
(52,316)
|
|
Other current
assets
|
34,753
|
|
|
38,994
|
|
|
(2,742)
|
|
|
(18,326)
|
|
Accounts payable and
accrued liabilities
|
(37,666)
|
|
|
(44,218)
|
|
|
84,844
|
|
|
29,034
|
|
Interest
payable
|
(16,783)
|
|
|
(15,447)
|
|
|
(225)
|
|
|
2,066
|
|
Cash provided by
operating activities
|
257,468
|
|
|
140,284
|
|
|
881,692
|
|
|
605,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(195,721)
|
|
|
(342,183)
|
|
|
(882,664)
|
|
|
(1,089,100)
|
|
Acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|
(162,479)
|
|
Net proceeds from
sale of property, plant and mine development
|
829
|
|
|
163
|
|
|
3,692
|
|
|
35,246
|
|
Net proceeds from
sale of short-term investments
|
759
|
|
|
7,103
|
|
|
75
|
|
|
4,839
|
|
Net proceeds from
sale of equity securities and other investments
|
35,911
|
|
|
1,073
|
|
|
43,733
|
|
|
17,499
|
|
Purchases of equity
securities and other investments
|
(3,767)
|
|
|
(2,510)
|
|
|
(33,498)
|
|
|
(11,163)
|
|
Payments for
financial assets at amortized cost
|
(5,222)
|
|
|
—
|
|
|
(5,222)
|
|
|
—
|
|
(Increase) decrease
in restricted cash
|
—
|
|
|
(22)
|
|
|
—
|
|
|
790
|
|
Cash used in
investing activities
|
(167,211)
|
|
|
(336,376)
|
|
|
(873,884)
|
|
|
(1,204,368)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
paid
|
(34,187)
|
|
|
(20,821)
|
|
|
(105,408)
|
|
|
(83,961)
|
|
Repayment of lease
obligations
|
(4,941)
|
|
|
(820)
|
|
|
(15,451)
|
|
|
(3,382)
|
|
Proceeds from
long-term debt
|
—
|
|
|
50,000
|
|
|
220,000
|
|
|
300,000
|
|
Repayment of
long-term debt
|
—
|
|
|
(50,000)
|
|
|
(220,000)
|
|
|
(300,000)
|
|
Notes
issuance
|
—
|
|
|
—
|
|
|
—
|
|
|
350,000
|
|
Long-term debt
financing costs
|
—
|
|
|
(930)
|
|
|
—
|
|
|
(3,215)
|
|
Repurchase of common
shares for stock-based compensation plans
|
(274)
|
|
|
(3,559)
|
|
|
(24,669)
|
|
|
(30,062)
|
|
Proceeds on exercise
of stock options
|
7,384
|
|
|
4,748
|
|
|
140,627
|
|
|
30,962
|
|
Common shares
issued
|
3,927
|
|
|
3,283
|
|
|
15,511
|
|
|
13,757
|
|
Cash (used in)
provided by financing activities
|
(28,091)
|
|
|
(18,099)
|
|
|
10,610
|
|
|
274,099
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
1,312
|
|
|
(4,238)
|
|
|
1,653
|
|
|
(6,533)
|
|
Net increase
(decrease) in cash and cash equivalents during the
period
|
63,478
|
|
|
(218,429)
|
|
|
20,071
|
|
|
(331,152)
|
|
Cash and cash
equivalents, beginning of period
|
258,419
|
|
|
520,255
|
|
|
301,826
|
|
|
632,978
|
|
Cash and cash
equivalents, end of period
|
$
|
321,897
|
|
|
$
|
301,826
|
|
|
$
|
321,897
|
|
|
$
|
301,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
42,440
|
|
|
$
|
42,743
|
|
|
$
|
101,523
|
|
|
$
|
91,079
|
|
Income and mining
taxes paid
|
$
|
20,330
|
|
|
$
|
9,615
|
|
|
$
|
90,694
|
|
|
$
|
106,568
|
|
AGNICO EAGLE MINES
LIMITED
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
|
(thousands of
United States dollars, except where noted)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production
Costs by Mine
|
|
Three Months
Ended
December 31, 2019
|
|
Three Months
Ended
December 31, 2018
|
|
|
Year Ended
December 31, 2019
|
|
|
Three Months
Ended
December 31, 2018
|
|
(thousands of
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
|
$
|
49,957
|
|
|
$
|
53,931
|
|
|
$
|
215,012
|
|
|
$
|
228,294
|
|
LaRonde Zone 5
mine
|
|
12,804
|
|
|
6,326
|
|
|
41,212
|
|
|
12,991
|
|
Lapa mine
|
|
—
|
|
|
10,541
|
|
|
2,844
|
|
|
27,870
|
|
Goldex
mine
|
|
22,944
|
|
|
19,707
|
|
|
82,533
|
|
|
78,533
|
|
Meadowbank
complex
|
|
76,641
|
|
|
44,330
|
|
|
180,848
|
|
|
211,147
|
|
Meliadine
mine
|
|
59,669
|
|
|
—
|
|
|
142,932
|
|
|
—
|
|
Canadian Malartic
mine(i)
|
|
54,745
|
|
|
51,148
|
|
|
208,178
|
|
|
199,761
|
|
Kittila
mine
|
|
38,437
|
|
|
36,415
|
|
|
142,517
|
|
|
157,032
|
|
Pinos Altos
mine
|
|
34,618
|
|
|
35,206
|
|
|
130,190
|
|
|
138,362
|
|
Creston Mascota
mine
|
|
8,419
|
|
|
9,066
|
|
|
35,801
|
|
|
37,270
|
|
La India
mine
|
|
16,735
|
|
|
17,802
|
|
|
65,638
|
|
|
69,095
|
|
Production costs per
the consolidated
statements of income (loss)
|
|
$
|
374,969
|
|
|
$
|
284,472
|
|
|
$
|
1,247,705
|
|
|
$
|
1,160,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold Produced
(ii) by Mine and Reconciliation of Production Costs to
Minesite Costs per Tonne(iii) by
Mine
|
|
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
97,470
|
|
|
|
|
|
81,022
|
|
|
|
|
|
343,154
|
|
|
|
|
|
343,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
49,957
|
|
|
$
|
513
|
|
|
$
|
53,931
|
|
|
$
|
666
|
|
|
$
|
215,012
|
|
|
$
|
627
|
|
|
$
|
228,294
|
|
|
$
|
664
|
|
Inventory and other
adjustments(iv)
|
|
7,195
|
|
|
73
|
|
|
(1,332)
|
|
|
(17)
|
|
|
11,595
|
|
|
33
|
|
|
(10,475)
|
|
|
(30)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
57,152
|
|
|
$
|
586
|
|
|
$
|
52,599
|
|
|
$
|
649
|
|
|
$
|
226,607
|
|
|
$
|
660
|
|
|
$
|
217,819
|
|
|
$
|
634
|
|
By-product metal
revenues
|
|
(15,983)
|
|
|
(164)
|
|
|
(16,890)
|
|
|
(208)
|
|
|
(67,224)
|
|
|
(196)
|
|
|
(64,973)
|
|
|
(189)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
41,169
|
|
|
$
|
422
|
|
|
$
|
35,709
|
|
|
$
|
441
|
|
|
$
|
159,383
|
|
|
$
|
464
|
|
|
$
|
152,846
|
|
|
$
|
445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
505
|
|
|
|
|
|
515
|
|
|
|
|
|
2,057
|
|
|
|
|
|
2,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
49,957
|
|
|
$
|
99
|
|
|
$
|
53,931
|
|
|
$
|
105
|
|
|
$
|
215,012
|
|
|
$
|
105
|
|
|
$
|
228,294
|
|
|
$
|
108
|
|
Production costs
(C$)
|
|
C$
|
66,032
|
|
|
C$
|
131
|
|
|
C$
|
70,291
|
|
|
C$
|
136
|
|
|
C$
|
285,423
|
|
|
C$
|
139
|
|
|
C$
|
293,094
|
|
|
C$
|
139
|
|
Inventory and other
adjustments (C$)(v)
|
|
(1,543)
|
|
|
(3)
|
|
|
(10,206)
|
|
|
(19)
|
|
|
(27,629)
|
|
|
(14)
|
|
|
(41,568)
|
|
|
(20)
|
|
Minesite operating
costs (C$)
|
|
C$
|
64,489
|
|
|
C$
|
128
|
|
|
C$
|
60,085
|
|
|
C$
|
117
|
|
|
C$
|
257,794
|
|
|
C$
|
125
|
|
|
C$
|
251,526
|
|
|
C$
|
119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
15,234
|
|
|
|
|
|
10,196
|
|
|
|
|
|
59,830
|
|
|
|
|
|
18,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
12,804
|
|
|
$
|
840
|
|
|
$
|
6,326
|
|
|
$
|
620
|
|
|
$
|
41,212
|
|
|
$
|
689
|
|
|
$
|
12,991
|
|
|
$
|
698
|
|
Inventory and other
adjustments(iv)
|
|
(977)
|
|
|
(64)
|
|
|
224
|
|
|
22
|
|
|
2,169
|
|
|
36
|
|
|
656
|
|
|
35
|
|
Cash operating costs
(co-product basis)
|
|
$
|
11,827
|
|
|
$
|
776
|
|
|
$
|
6,550
|
|
|
$
|
642
|
|
|
$
|
43,381
|
|
|
$
|
725
|
|
|
$
|
13,647
|
|
|
$
|
733
|
|
By-product metal
revenues
|
|
(77)
|
|
|
(5)
|
|
|
(14)
|
|
|
(1)
|
|
|
(185)
|
|
|
(3)
|
|
|
(21)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
11,750
|
|
|
$
|
771
|
|
|
$
|
6,536
|
|
|
$
|
641
|
|
|
$
|
43,196
|
|
|
$
|
722
|
|
|
$
|
13,626
|
|
|
$
|
732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
227
|
|
|
|
|
|
115
|
|
|
|
|
|
870
|
|
|
|
|
|
225
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
12,804
|
|
|
$
|
56
|
|
|
$
|
6,326
|
|
|
$
|
55
|
|
|
$
|
41,212
|
|
|
$
|
47
|
|
|
$
|
12,991
|
|
|
$
|
58
|
|
Production costs
(C$)
|
|
C$
|
16,901
|
|
|
C$
|
74
|
|
|
C$
|
8,346
|
|
|
C$
|
73
|
|
|
C$
|
54,644
|
|
|
C$
|
63
|
|
|
C$
|
17,028
|
|
|
C$
|
76
|
|
Inventory and other
adjustments (C$)(v)
|
|
(1,338)
|
|
|
(5)
|
|
|
270
|
|
|
2
|
|
|
2,855
|
|
|
3
|
|
|
945
|
|
|
4
|
|
Minesite operating
costs (C$)
|
|
C$
|
15,563
|
|
|
C$
|
69
|
|
|
C$
|
8,616
|
|
|
C$
|
75
|
|
|
C$
|
57,499
|
|
|
C$
|
66
|
|
|
C$
|
17,973
|
|
|
C$
|
80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)(vi)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
—
|
|
|
|
|
|
7,307
|
|
|
|
|
|
—
|
|
|
|
|
|
34,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,541
|
|
|
$
|
1,443
|
|
|
$
|
2,844
|
|
|
$
|
—
|
|
|
$
|
27,870
|
|
|
$
|
819
|
|
Inventory and other
adjustments(iv)
|
|
—
|
|
|
—
|
|
|
(5,317)
|
|
|
(728)
|
|
|
(2,844)
|
|
|
—
|
|
|
1,843
|
|
|
54
|
|
Cash operating costs
(co-product basis)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,224
|
|
|
$
|
715
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29,713
|
|
|
$
|
873
|
|
By-product metal
revenues
|
|
—
|
|
|
—
|
|
|
(13)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(26)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,211
|
|
|
$
|
713
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
29,687
|
|
|
$
|
872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
—
|
|
|
|
|
|
69
|
|
|
|
|
|
—
|
|
|
|
|
|
311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,541
|
|
|
$
|
153
|
|
|
$
|
2,844
|
|
|
$
|
—
|
|
|
$
|
27,870
|
|
|
$
|
90
|
|
Production costs
(C$)
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
13,688
|
|
|
C$
|
198
|
|
|
C$
|
3,723
|
|
|
C$
|
—
|
|
|
C$
|
35,854
|
|
|
C$
|
115
|
|
Inventory and other
adjustments (C$)(v)
|
|
—
|
|
|
—
|
|
|
(6,827)
|
|
|
(99)
|
|
|
(3,723)
|
|
|
—
|
|
|
2,369
|
|
|
8
|
|
Minesite operating
costs (C$)
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
6,861
|
|
|
C$
|
99
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
38,223
|
|
|
C$
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
34,963
|
|
|
|
|
|
31,508
|
|
|
|
|
|
140,884
|
|
|
|
|
|
121,167
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
22,944
|
|
|
$
|
656
|
|
|
$
|
19,707
|
|
|
$
|
625
|
|
|
$
|
82,533
|
|
|
$
|
586
|
|
|
$
|
78,533
|
|
|
$
|
648
|
|
Inventory and other
adjustments(iv)
|
|
(551)
|
|
|
(16)
|
|
|
(56)
|
|
|
(1)
|
|
|
(289)
|
|
|
(2)
|
|
|
(219)
|
|
|
(2)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
22,393
|
|
|
$
|
640
|
|
|
$
|
19,651
|
|
|
$
|
624
|
|
|
$
|
82,244
|
|
|
$
|
584
|
|
|
$
|
78,314
|
|
|
$
|
646
|
|
By-product metal
revenues
|
|
(12)
|
|
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(33)
|
|
|
—
|
|
|
(25)
|
|
|
—
|
|
Cash operating costs
(by-product basis)
|
|
$
|
22,381
|
|
|
$
|
640
|
|
|
$
|
19,645
|
|
|
$
|
624
|
|
|
$
|
82,211
|
|
|
$
|
584
|
|
|
$
|
78,289
|
|
|
$
|
646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
684
|
|
|
|
|
|
711
|
|
|
|
|
|
2,785
|
|
|
|
|
|
2,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
22,944
|
|
|
$
|
34
|
|
|
$
|
19,707
|
|
|
$
|
28
|
|
|
$
|
82,533
|
|
|
$
|
30
|
|
|
$
|
78,533
|
|
|
$
|
30
|
|
Production costs
(C$)
|
|
C$
|
30,240
|
|
|
C$
|
44
|
|
|
C$
|
26,075
|
|
|
C$
|
37
|
|
|
C$
|
109,373
|
|
|
C$
|
39
|
|
|
C$
|
101,787
|
|
|
C$
|
39
|
|
Inventory and other
adjustments (C$)(v)
|
|
(700)
|
|
|
(1)
|
|
|
(181)
|
|
|
(1)
|
|
|
(245)
|
|
|
—
|
|
|
44
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
29,540
|
|
|
C$
|
43
|
|
|
C$
|
25,894
|
|
|
C$
|
36
|
|
|
C$
|
109,128
|
|
|
C$
|
39
|
|
|
C$
|
101,831
|
|
|
C$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)(vii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
61,660
|
|
|
|
|
|
59,664
|
|
|
|
|
|
158,208
|
|
|
|
|
|
248,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
76,641
|
|
|
$
|
1,243
|
|
|
$
|
44,330
|
|
|
$
|
743
|
|
|
$
|
180,848
|
|
|
$
|
1,143
|
|
|
$
|
211,147
|
|
|
$
|
848
|
|
Inventory and other
adjustments(iv)
|
|
10,290
|
|
|
167
|
|
|
(177)
|
|
|
(3)
|
|
|
2,859
|
|
|
18
|
|
|
(5,769)
|
|
|
(23)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
86,931
|
|
|
$
|
1,410
|
|
|
$
|
44,153
|
|
|
$
|
740
|
|
|
$
|
183,707
|
|
|
$
|
1,161
|
|
|
$
|
205,378
|
|
|
$
|
825
|
|
By-product metal
revenues
|
|
(273)
|
|
|
(5)
|
|
|
(371)
|
|
|
(6)
|
|
|
(1,391)
|
|
|
(9)
|
|
|
(2,685)
|
|
|
(11)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
86,658
|
|
|
$
|
1,405
|
|
|
$
|
43,782
|
|
|
$
|
734
|
|
|
$
|
182,316
|
|
|
$
|
1,152
|
|
|
$
|
202,693
|
|
|
$
|
814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)(viii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
709
|
|
|
|
|
|
700
|
|
|
|
|
|
2,381
|
|
|
|
|
|
3,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
76,641
|
|
|
$
|
108
|
|
|
$
|
44,330
|
|
|
$
|
63
|
|
|
$
|
180,848
|
|
|
$
|
76
|
|
|
$
|
211,147
|
|
|
$
|
65
|
|
Production costs
(C$)
|
|
C$
|
101,041
|
|
|
C$
|
143
|
|
|
C$
|
57,511
|
|
|
C$
|
82
|
|
|
C$
|
240,014
|
|
|
C$
|
101
|
|
|
C$
|
272,140
|
|
|
C$
|
83
|
|
Inventory and other
adjustments (C$)(v)
|
|
13,990
|
|
|
19
|
|
|
676
|
|
|
1
|
|
|
6,292
|
|
|
2
|
|
|
(4,477)
|
|
|
(1)
|
|
Minesite operating
costs (C$)
|
|
C$
|
115,031
|
|
|
C$
|
162
|
|
|
C$
|
58,187
|
|
|
C$
|
83
|
|
|
C$
|
246,306
|
|
|
C$
|
103
|
|
|
C$
|
267,663
|
|
|
C$
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
Per Ounce of Gold
Produced(ii)(ix)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
81,607
|
|
|
|
|
|
—
|
|
|
|
|
|
191,113
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
59,669
|
|
|
$
|
731
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142,932
|
|
|
$
|
748
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Inventory and other
adjustments(iv)
|
|
(1,290)
|
|
|
(16)
|
|
|
—
|
|
|
—
|
|
|
389
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Cash operating costs
(co-product basis)
|
|
$
|
58,379
|
|
|
$
|
715
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
143,321
|
|
|
$
|
750
|
|
|
$
|
—
|
|
|
$
|
—
|
|
By-product metal
revenues
|
|
(268)
|
|
|
(3)
|
|
|
—
|
|
|
—
|
|
|
(286)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
Cash operating costs
(by-product basis)
|
|
$
|
58,111
|
|
|
$
|
712
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
143,035
|
|
|
$
|
748
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)*
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
326
|
|
|
|
|
|
—
|
|
|
|
|
|
773
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
59,669
|
|
|
$
|
183
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142,932
|
|
|
$
|
185
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Production costs
(C$)
|
|
C$
|
78,595
|
|
|
C$
|
241
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
188,680
|
|
|
C$
|
244
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
Inventory and other
adjustments (C$)(v)
|
|
(1,350)
|
|
|
(4)
|
|
|
—
|
|
|
—
|
|
|
1,409
|
|
|
2
|
|
|
—
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
77,245
|
|
|
C$
|
237
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
190,089
|
|
|
C$
|
246
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine(i)
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)(xi)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
81,905
|
|
|
|
|
|
84,732
|
|
|
|
|
|
331,459
|
|
|
|
|
|
348,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
54,745
|
|
|
$
|
668
|
|
|
$
|
51,148
|
|
|
$
|
604
|
|
|
$
|
208,178
|
|
|
$
|
628
|
|
|
$
|
199,761
|
|
|
$
|
573
|
|
Inventory and other
adjustments(iv)
|
|
(1,070)
|
|
|
(13)
|
|
|
(1,899)
|
|
|
(23)
|
|
|
(723)
|
|
|
(2)
|
|
|
1,947
|
|
|
6
|
|
Cash operating costs
(co-product basis)
|
|
$
|
53,675
|
|
|
$
|
655
|
|
|
$
|
49,249
|
|
|
$
|
581
|
|
|
$
|
207,455
|
|
|
$
|
626
|
|
|
$
|
201,708
|
|
|
$
|
579
|
|
By-product metal
revenues
|
|
(2,038)
|
|
|
(25)
|
|
|
(1,608)
|
|
|
(19)
|
|
|
(6,711)
|
|
|
(20)
|
|
|
(6,806)
|
|
|
(20)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
51,637
|
|
|
$
|
630
|
|
|
$
|
47,641
|
|
|
$
|
562
|
|
|
$
|
200,744
|
|
|
$
|
606
|
|
|
$
|
194,902
|
|
|
$
|
559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine(i)
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)(xii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
2,587
|
|
|
|
|
|
2,542
|
|
|
|
|
|
10,391
|
|
|
|
|
|
10,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
54,745
|
|
|
$
|
21
|
|
|
$
|
51,148
|
|
|
$
|
20
|
|
|
$
|
208,178
|
|
|
$
|
20
|
|
|
$
|
199,761
|
|
|
$
|
20
|
|
Production costs
(C$)
|
|
C$
|
70,604
|
|
|
C$
|
27
|
|
|
C$
|
67,097
|
|
|
C$
|
26
|
|
|
C$
|
274,786
|
|
|
C$
|
26
|
|
|
C$
|
258,291
|
|
|
C$
|
25
|
|
Inventory and other
adjustments (C$)(v)
|
|
(3,132)
|
|
|
(1)
|
|
|
(2,240)
|
|
|
(1)
|
|
|
(2,201)
|
|
|
—
|
|
|
2,972
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
67,472
|
|
|
C$
|
26
|
|
|
C$
|
64,857
|
|
|
C$
|
25
|
|
|
C$
|
272,585
|
|
|
C$
|
26
|
|
|
C$
|
261,263
|
|
|
C$
|
25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
55,345
|
|
|
|
|
|
49,353
|
|
|
|
|
|
186,101
|
|
|
|
|
|
188,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
38,437
|
|
|
$
|
694
|
|
|
$
|
36,415
|
|
|
$
|
738
|
|
|
$
|
142,517
|
|
|
$
|
766
|
|
|
$
|
157,032
|
|
|
$
|
831
|
|
Inventory and other
adjustments(iv)
|
|
3,480
|
|
|
63
|
|
|
2,464
|
|
|
50
|
|
|
(5,314)
|
|
|
(29)
|
|
|
4,374
|
|
|
23
|
|
Cash operating costs
(co-product basis)
|
|
$
|
41,917
|
|
|
$
|
757
|
|
|
$
|
38,879
|
|
|
$
|
788
|
|
|
$
|
137,203
|
|
|
$
|
737
|
|
|
$
|
161,406
|
|
|
$
|
854
|
|
By-product metal
revenues
|
|
(89)
|
|
|
(1)
|
|
|
(32)
|
|
|
(1)
|
|
|
(238)
|
|
|
(1)
|
|
|
(186)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
41,828
|
|
|
$
|
756
|
|
|
$
|
38,847
|
|
|
$
|
787
|
|
|
$
|
136,965
|
|
|
$
|
736
|
|
|
$
|
161,220
|
|
|
$
|
853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
468
|
|
|
|
|
462
|
|
|
|
|
|
1,591
|
|
|
|
|
|
1,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
38,437
|
|
|
$
|
82
|
|
|
$
|
36,415
|
|
|
$
|
79
|
|
|
$
|
142,517
|
|
|
$
|
90
|
|
|
$
|
157,032
|
|
|
$
|
86
|
|
Production costs
(€)
|
|
€
|
34,598
|
|
|
€
|
74
|
|
|
€
|
32,337
|
|
|
€
|
70
|
|
|
€
|
127,355
|
|
|
€
|
80
|
|
|
€
|
133,817
|
|
|
€
|
73
|
|
Inventory and other
adjustments (€)(v)
|
|
2,547
|
|
|
5
|
|
|
1,590
|
|
|
3
|
|
|
(5,882)
|
|
|
(4)
|
|
|
2,545
|
|
|
2
|
|
Minesite operating
costs (€)
|
|
€
|
37,145
|
|
|
€
|
79
|
|
|
€
|
33,927
|
|
|
€
|
73
|
|
|
€
|
121,473
|
|
|
€
|
76
|
|
|
€
|
136,362
|
|
|
€
|
75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
35,822
|
|
|
|
|
49,170
|
|
|
|
|
|
155,124
|
|
|
|
|
|
181,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
34,618
|
|
|
$
|
966
|
|
|
$
|
35,206
|
|
|
$
|
716
|
|
|
$
|
130,190
|
|
|
$
|
839
|
|
|
$
|
138,362
|
|
|
$
|
764
|
|
Inventory and other
adjustments(iv)
|
|
1,344
|
|
|
38
|
|
|
(432)
|
|
|
(9)
|
|
|
4,229
|
|
|
28
|
|
|
(2,767)
|
|
|
(15)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
35,962
|
|
|
$
|
1,004
|
|
|
$
|
34,774
|
|
|
$
|
707
|
|
|
$
|
134,419
|
|
|
$
|
867
|
|
|
$
|
135,595
|
|
|
$
|
749
|
|
By-product metal
revenues
|
|
(8,822)
|
|
|
(246)
|
|
|
(9,282)
|
|
|
(189)
|
|
|
(35,322)
|
|
|
(228)
|
|
|
(36,301)
|
|
|
(201)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
27,140
|
|
|
$
|
758
|
|
|
$
|
25,492
|
|
|
$
|
518
|
|
|
$
|
99,097
|
|
|
$
|
639
|
|
|
$
|
99,294
|
|
|
$
|
548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
512
|
|
|
|
|
588
|
|
|
|
|
|
2,007
|
|
|
|
|
|
2,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
34,618
|
|
|
$
|
68
|
|
|
$
|
35,206
|
|
|
$
|
60
|
|
|
$
|
130,190
|
|
|
$
|
65
|
|
|
$
|
138,362
|
|
|
$
|
62
|
|
Inventory and other
adjustments(v)
|
|
993
|
|
|
2
|
|
|
(486)
|
|
|
(1)
|
|
|
3,074
|
|
|
1
|
|
|
(3,061)
|
|
|
(1)
|
|
Minesite operating
costs
|
|
$
|
35,611
|
|
|
$
|
70
|
|
|
$
|
34,720
|
|
|
$
|
59
|
|
|
$
|
133,264
|
|
|
$
|
66
|
|
|
$
|
135,301
|
|
|
$
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
6,919
|
|
|
|
|
|
11,452
|
|
|
|
|
|
48,380
|
|
|
|
|
|
40,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
8,419
|
|
|
$
|
1,217
|
|
|
$
|
9,066
|
|
|
$
|
792
|
|
|
$
|
35,801
|
|
|
$
|
740
|
|
|
$
|
37,270
|
|
|
$
|
928
|
|
Inventory and other
adjustments(iv)
|
|
578
|
|
|
83
|
|
|
596
|
|
|
52
|
|
|
678
|
|
|
14
|
|
|
1,326
|
|
|
33
|
|
Cash operating costs
(co-product basis)
|
|
$
|
8,997
|
|
|
$
|
1,300
|
|
|
$
|
9,662
|
|
|
$
|
844
|
|
|
$
|
36,479
|
|
|
$
|
754
|
|
|
$
|
38,596
|
|
|
$
|
961
|
|
By-product metal
revenues
|
|
(1,574)
|
|
|
(227)
|
|
|
(1,237)
|
|
|
(108)
|
|
|
(9,671)
|
|
|
(200)
|
|
|
(4,818)
|
|
|
(120)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
7,423
|
|
|
$
|
1,073
|
|
|
$
|
8,425
|
|
|
$
|
736
|
|
|
$
|
26,808
|
|
|
$
|
554
|
|
|
$
|
33,778
|
|
|
$
|
841
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
94
|
|
|
|
|
|
383
|
|
|
|
|
|
1,067
|
|
|
|
|
|
1,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
8,419
|
|
|
$
|
90
|
|
|
$
|
9,066
|
|
|
$
|
24
|
|
|
$
|
35,801
|
|
|
$
|
34
|
|
|
$
|
37,270
|
|
|
$
|
26
|
|
Inventory and other
adjustments(v)
|
|
469
|
|
|
5
|
|
|
481
|
|
|
1
|
|
|
(122)
|
|
|
(1)
|
|
|
853
|
|
|
1
|
|
Minesite operating
costs
|
|
$
|
8,888
|
|
|
$
|
95
|
|
|
$
|
9,547
|
|
|
$
|
25
|
|
|
$
|
35,679
|
|
|
$
|
33
|
|
|
$
|
38,123
|
|
|
$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
|
(thousands)
|
|
|
($ per ounce
)
|
|
Gold production
(ounces)
|
|
|
|
20,616
|
|
|
|
|
|
26,308
|
|
|
|
|
|
82,190
|
|
|
|
|
|
101,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
16,735
|
|
|
$
|
812
|
|
|
$
|
17,802
|
|
|
$
|
677
|
|
|
$
|
65,638
|
|
|
$
|
799
|
|
|
$
|
69,095
|
|
|
$
|
682
|
|
Inventory and other
adjustments(iv)
|
|
2,060
|
|
|
100
|
|
|
1,242
|
|
|
47
|
|
|
4,166
|
|
|
50
|
|
|
3,084
|
|
|
30
|
|
Cash operating costs
(co-product basis)
|
|
$
|
18,795
|
|
|
$
|
912
|
|
|
$
|
19,044
|
|
|
$
|
724
|
|
|
$
|
69,804
|
|
|
$
|
849
|
|
|
$
|
72,179
|
|
|
$
|
712
|
|
By-product metal
revenues
|
|
(413)
|
|
|
(20)
|
|
|
(795)
|
|
|
(30)
|
|
|
(2,184)
|
|
|
(26)
|
|
|
(2,777)
|
|
|
(27)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
18,382
|
|
|
$
|
892
|
|
|
$
|
18,249
|
|
|
$
|
694
|
|
|
$
|
67,620
|
|
|
$
|
823
|
|
|
$
|
69,402
|
|
|
$
|
685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
Year
Ended
|
|
|
Year
Ended
|
|
Per
Tonne(iii)
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
December 31,
2019
|
|
|
December 31,
2018
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
|
(thousands)
|
|
|
($ per tonne
)
|
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
1,404
|
|
|
|
|
|
1,451
|
|
|
|
|
|
5,402
|
|
|
|
|
|
6,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
16,735
|
|
|
$
|
12
|
|
|
$
|
17,802
|
|
|
$
|
12
|
|
|
$
|
65,638
|
|
|
$
|
12
|
|
|
$
|
69,095
|
|
|
$
|
11
|
|
Inventory and other
adjustments(v)
|
|
1,893
|
|
|
1
|
|
|
980
|
|
|
1
|
|
|
2,591
|
|
|
1
|
|
|
2,109
|
|
|
1
|
|
Minesite operating
costs
|
|
$
|
18,628
|
|
|
$
|
13
|
|
|
$
|
18,782
|
|
|
$
|
13
|
|
|
$
|
68,229
|
|
|
$
|
13
|
|
|
$
|
71,204
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(ii) Total cash costs
per ounce of gold produced is not a recognized measure under IFRS
and this data may not be comparable to data reported by other gold
producers. Total cash costs per ounce of gold produced is presented
on both a by-product basis (deducting by-product metal revenues
from production costs) and co-product basis (without deducting
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 for by-product metal revenues, inventory production costs,
smelting, refining and marketing charges, 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 and other adjustments 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 analysis
in order to quantify the effects of fluctuating metal prices and
exchange rates.
|
(iii) Minesite costs
per tonne is not a recognized measure under IFRS and this data may
not be comparable to data reported by other gold producers. This
measure is calculated by adjusting production costs as shown in the
consolidated statements of income for inventory production costs
and other adjustments, and then dividing by tonnes of ore milled.
As the total cash costs per ounce of gold produced measure can be
affected by fluctuations in by-product metal prices and exchange
rates, management believes that the minesite costs per tonne
measure provides additional information regarding the performance
of mining operations, eliminating the impact of varying production
levels. Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated based
on the net realizable value of each tonne mined, in order to be
economically viable the estimated revenue on a per tonne basis must
be in excess of the minesite costs per tonne. Management is aware
that this per tonne measure of performance can be impacted by
fluctuations in processing levels and compensates for this inherent
limitation by using this measure in conjunction with production
costs prepared in accordance with IFRS.
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include the addition of
smelting, refining and marketing charges to production
costs.
|
(v) This inventory
and other adjustment reflects production costs associated with the
portion of production still in inventory and smelting, refining and
marketing charges associated with production.
|
(vi) The Lapa mine's
cost calculations per ounce of gold produced for the year ended
December 31, 2019 exclude 5 ounces of payable gold production,
which were credited to the Company as a result of final
refining reconciliation following the cessation of mining and
processing operations at the Lapa mine.
|
(vii) The Meadowbank
Complex's cost calculations per ounce of gold produced for the year
ended December 31, 2019 exclude 35,281 ounces of payable gold
production which were produced prior to the achievement of
commercial production at the Amaruq satellite deposit on September
30, 2019.
|
(viii) The Meadowbank
Complex's cost calculations per tonne for the year ended December
31, 2019 exclude 369,519 tonnes which were processed prior to the
achievement of commercial production at the Amaruq satellite
deposit on September 30, 2019.
|
(ix) The Meliadine
mine's cost calculations per ounce of gold produced for the year
ended December 31, 2019 exclude 47,281 ounces of payable gold
production which were produced prior to the achievement of
commercial production on May 14, 2019.
|
* The Meliadine
mine's cost calculations per tonne for the year ended December 31,
2019 exclude 263,749 tonnes which were processed prior to the
achievement of commercial production on May 14, 2019.
|
(xi) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three months and year ended December 31, 2019 exclude 3,137
ounces of payable gold production which were produced during these
periods as commercial production at the Barnat deposit has not yet
been achieved.
|
(xii) The Canadian
Malartic mine's cost calculations per tonne for the three months
and year ended December 31, 2019 exclude 133,615 tonnes which were
processed during these periods as achievement of commercial
production at the Barnat deposit has not yet been
achieved.
|
Reconciliation of
Production Costs to All-in Sustaining Costs per Ounce of
Gold Produced
|
|
|
|
|
|
|
|
|
|
|
|
|
(United States dollars per ounce of gold
produced, except where noted)
|
Three Months
Ended
December 31, 2019
|
|
Three Months
Ended
December 31, 2018
|
|
Year Ended
December 31, 2019
|
|
Year Ended
December 31, 2018
|
Production costs per
the consolidated statements of income (loss) (thousands
of United States dollars)
|
$
|
374,969
|
|
$
|
284,472
|
|
$
|
1,247,705
|
|
$
|
1,160,355
|
Adjusted gold
production (ounces)(i)(ii)(iii)(iv)
|
491,541
|
|
410,712
|
|
1,696,443
|
|
1,626,669
|
Production costs per
ounce of adjusted gold production
|
$
|
763
|
|
$
|
693
|
|
$
|
735
|
|
$
|
713
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(v)
|
42
|
|
(12)
|
|
10
|
|
(3)
|
Total cash costs per
ounce of gold produced (co-product basis)(vi)
|
$
|
805
|
|
$
|
681
|
|
$
|
745
|
|
$
|
710
|
By-product metal
revenues
|
(60)
|
|
(73)
|
|
(72)
|
|
(73)
|
Total cash costs per
ounce of gold produced (by-product basis)(vi)
|
$
|
745
|
|
$
|
608
|
|
$
|
673
|
|
$
|
637
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
213
|
|
164
|
|
185
|
|
159
|
General and
administrative expenses (including stock options)
|
72
|
|
76
|
|
71
|
|
77
|
Non-cash reclamation
provision and other
|
9
|
|
4
|
|
9
|
|
4
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
1,039
|
|
$
|
852
|
|
$
|
938
|
|
$
|
877
|
By-product metal
revenues
|
60
|
|
73
|
|
72
|
|
73
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,099
|
|
$
|
925
|
|
$
|
1,010
|
|
$
|
950
|
|
Notes:
|
|
(i) Adjusted gold
production for the year ended December 31, 2019 excludes 5
ounces of payable gold production at the Lapa mine which
were credited to the Company as a result of final
refining reconciliation following the cessation of mining and
processing operations at the site.
|
|
(ii) Adjusted gold
production for the year ended December 31, 2019 excludes
35,281 ounces of payable gold production at the Meadowbank Complex,
which were produced prior to the achievement of commercial
production at the Amaruq satellite deposit on September 30,
2019.
|
|
(iii) Adjusted gold
production for the year ended December 31, 2019 excludes
47,281 ounces of payable gold production at the Meliadine mine,
which were produced prior to the achievement of commercial
production on May 14, 2019.
|
|
(iv) Adjusted gold
production for the three months and year ended December 31, 2019
exclude 3,137 ounces of payable gold production at the Canadian
Malartic mine, which were produced during these periods as
commercial production at the Barnat deposit has not yet been
achieved.
|
|
(v) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon transfer of control over metals sold
to the customer. As total cash costs per ounce of gold produced are
calculated on a production basis, an inventory adjustment is made
to reflect the portion of production not yet recognized as revenue.
Other adjustments are represented by the inclusion of smelting,
refining and marketing charges and exclusion of charges not
directly associated with the production of minerals.
|
|
(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 reported 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 (without deducting
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 metal revenues, inventory production
costs or 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 and other adjustments
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 analysis
in order to quantify the effects of fluctuating metal prices and
exchange rates.
|
View original
content:http://www.prnewswire.com/news-releases/agnico-eagle-reports-fourth-quarter-and-full-year-2019-results--record-annual-and-quarterly-gold-production-production-guidance-outlines-18-growth-through-2022-with-declining-unit-costs-in-2021-and-2022-pipeline-projects-conti-301004930.html
SOURCE Agnico Eagle Mines Limited