In c9018 transmitted today at 17:15e, errors occurred in the 5th
paragraph under the "Liquidity - Credit Rating Maintained" and
"Revised 2014 Tax Guidance" headers. Full corrected copy
follows:
Agnico Eagle reports second quarter 2014 results - Increased
2014 guidance on the back of continued strong operating results and
completion of the Osisko acquisition
(All amounts expressed in U.S. dollars unless otherwise
noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO,
July 30, 2014 /CNW/ - Agnico Eagle
Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") today reported a quarterly net income of $37.7 million, or $0.20 per share for the second quarter of
2014. This result includes a non-cash foreign currency
translation loss of $8.7 million
($0.05 per share), non-cash stock
option expense of $5.1 million
($0.03 per share), non-recurring
losses of $6.1 million ($0.03 per share) related to the Osisko Mining
Corporation ("Osisko") acquisition, and non-recurring gains of
$4.8 million ($0.03 per share). Excluding these items
would result in an adjusted net income of $52.8 million, or $0.28 per share. In the second quarter of
2013, the Company reported a net loss of $24.4 million, or $0.14 per share.
For the first six months of 2014, the Company reported net
income of $146.5 million, or
$0.81 per share. This compares
with the first six months of 2013 when a net loss of $0.5 million, or nil per share, was
realized. Financial results in the 2014 period were positively
affected by significantly higher gold production due primarily to
higher grades at Meadowbank and contributions from commercial
production at Goldex and La India.
Second quarter 2014 cash provided by operating activities was
$197.7 million ($139.5 million before changes in non-cash
components of working capital), compared to cash provided by
operating activities of $75.3 million
in the second quarter of 2013 ($63.6
million before changes in non-cash components of working
capital).
For the first six months of 2014, cash provided by operating
activities was $445.4 million
($333.3 million before changes in
non-cash components of working capital), as compared with the first
half of 2013 when cash provided by operating activities was
$221.4 million ($198.1 million before changes in non-cash
components of working capital).
The higher net income and cash provided by operating activities
in 2014 was in spite of lower realized metal prices and is a result
of significantly higher gold production, as described above.
"With the closing of the Osisko transaction in the
second quarter, we are now working closely with our partner
Yamana to optimize the Canadian Malartic mine and maximize the
potential of the Kirkland Lake
portfolio," said Sean Boyd,
President and Chief Executive Officer. "In light of the Osisko
acquisition, and on the back of continued strong operating
performance in the second quarter we are pleased to announce
revised production guidance of approximately 1,360,000 million
ounces of gold for 2014, which is a 14% increase over our previous
guidance. Additionally, due to optimization efforts,
particularly at Meadowbank, Kittila and in our Southern Business,
we anticipate increasing our gold production guidance for 2015,
beyond the addition of the Canadian Malartic mine. We will
quantify this increase as soon as possible once our budget process
is further advanced," added Mr. Boyd.
Second quarter 2014 highlights include:
- Continued strong operating performance in the second quarter
2014 - Payable production1 of 326,059 ounces at
total cash costs2 per ounce on a by-product basis of
$626
- Acquisition of Osisko - during the second quarter,
Agnico Eagle and Yamana Gold Inc. ("Yamana") each acquired 50% of
Osisko and formed a joint committee to operate the Canadian
Malartic mine. The Company and Yamana are currently preparing a new
NI 43-101 report for the Canadian Malartic mine. The partners will
also jointly explore and potentially develop the Kirkland Lake assets, and continue exploration
at the Pandora property.
- Increased 2014 Guidance - production for 2014 is now
expected to be 1,350,000 to 1,370,000 million ounces, with total
cash costs on a by-product basis of $650 to
$675 per ounce. All-in sustaining costs3 on
a by-product basis are unchanged at $990 per ounce
- Mid-Year 2014 Exploration Update - IVR discovery near
Meadowbank continues to expand; new deep intersection at Kittila;
and technical studies progress at Meliadine and Akasaba West
projects; (for further information see the 2014 Exploration Update
news release dated July 30,
2014)
_____________________________________
1Payable production of a mineral means the quantity
of mineral produced during a period contained in products that are
sold by the Company whether such products are shipped during the
period or held as inventory at the end of the period.
2Total cash costs per ounce is a non-GAAP measure.
For a reconciliation to production costs, see "Reconciliation of
Non-US GAAP Financial Performance Measures - Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold Produced by
Mine" below. Total cash costs per ounce of gold produced is
presented on both a by-product basis (deducting by-product metal
revenues from production costs) and co-product basis (before
by-product metal revenues). Total cash costs per ounce of gold
produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income (loss) for by-product revenues, unsold concentrate inventory
production costs, non-cash reclamation provisions, deferred
stripping costs, smelting, refining and marketing charges and other
adjustments, and then dividing by the number of ounces of gold
produced. Total cash costs per ounce of gold produced on a
co-product basis is calculated in the same manner as total cash
costs per ounce of gold produced on a by-product basis except that
no adjustment for by-product metal revenues is made. See "Note
Regarding Certain Measures of Performance".
3All-in sustaining costs is a non-US GAAP measure and is
used to show the full cost of gold production from current
operations. The Company calculates all-in sustaining costs per
ounce of gold produced as the aggregate of total cash costs on a
by-product basis, sustaining capital expenditures (including
capitalized exploration), general and administrative expenses
(including stock options) and reclamation expenses divided by the
amount of gold produced. The Company's methodology for
calculating all-in sustaining costs may not be similar to the
methodology used by other producers that disclose all-in sustaining
costs. The Company may change the methodology it uses to calculate
all-in sustaining costs in the future, including in response to the
adoption of formal industry guidance regarding this measure by the
World Gold Council.
Payable gold production in the second quarter of 2014 was
326,059 ounces, including 11,878 ounces from the Canadian Malartic
mine, compared to 224,089 ounces in the second quarter of 2013.
A description of the production and cost performance for each
mine is set out below.
Total cash costs per ounce of gold produced on a by-product
basis for the second quarter of 2014 were $626. This compares with $785 per ounce on a by-product basis in the
second quarter of 2013 (excluding the Kittila operations). The
lower cash cost per ounce in 2014 was due primarily to higher
grades at Meadowbank and contributions from commercial production
at Goldex and La India.
Payable gold production for the first half of 2014 was 692,480
ounces, including 11,878 ounces from Canadian Malartic, compared to
payable gold production of 461,064 ounces in the comparable 2013
period.
For the first half of 2014, total cash costs on a by-product
basis were $579 per ounce. This
compares with $762 per ounce on a
by-product basis in the first six months of 2013 (excluding the
2013 second quarter impact of the idled Kittila operations due to
maintenance). The higher production in 2014 is due to the
factors that impacted the second quarter, as mentioned above.
On May 1, 2014, the Company
reported that gold production was expected to exceed the higher end
of the 2014 guidance range of 1,175,000 to 1,205,000 ounces, while
total cash costs on a by-product basis were forecast to be better
than the lower end of the guidance range of $670 to $690 per ounce. Given the continued
strong operating results, 2014 production guidance, excluding
the ounces from Canadian Malartic, is now expected to be 1,225,00
to 1,245,000 million ounces, while total cash costs on a by-product
basis are forecast to be $650 to $675
per ounce. Including Canadian Malartic, 2014 production is now
expected to be 1,350,000 to 1,370,000 million ounces, while total
cash costs on a by-product basis are expected to remain in the
range of $650 to $675 per
ounce.
Expected all-in sustaining cost (AISC) guidance calculated on a
by-product basis for 2014 is unchanged at $990 per ounce.
Updated production guidance for 2015 is expected to be provided
with the Q3 2014 results in October. Detailed guidance for 2015,
2016 and 2017 will be included in Agnico Eagle's regular three-year
guidance news release to be provided in February 2015.
Quarterly Dividend Declared
Agnico Eagle has paid a dividend every year since 1983. The
Board of Directors has approved the next quarterly dividend of
8 cents per share to be paid on
September 16, 2014 to shareholders of
record as of September 2,
2014.
Other Expected Dividend and Record Dates for 2014
Record Date |
Payment Date |
Dec. 1 |
Dec. 15 |
Conversion to International Financial Reporting
Standards
Agnico Eagle has decided to convert its basis of accounting to
International Financial Reporting Standards ("IFRS") to enhance the
comparability of its financial statements to the Company's peers
within the mining industry. The Company has commenced the process
to convert its basis of accounting from US GAAP to IFRS with a
transition date of January 1, 2013.
Agnico Eagle anticipates reporting under IFRS for interim and
annual periods beginning in the third quarter of 2014, with
comparative information restated under IFRS. Additional disclosure
regarding the IFRS conversion is included in the Company's
Management's Discussion and Analysis in respect of the second
quarter of 2014, which is expected to be filed in August 2014.
Second Quarter 2014 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Thursday, July 31, 2014 at
11:00 AM (E.D.T.) to discuss the
Company's financial and operating results.
Via Webcast:
A live audio webcast of the meeting will be available on the
Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen in by telephone, please dial
416-847-6330 or Toll-free 1-866-530-1553. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 647-436-0148 or Toll-free 1-888-203-1112, access code
9653906. The conference call replay will expire on August 31, 2014 at 2:00
PM.
The webcast along with presentation slides will be archived for
180 days on www.agnicoeagle.com.
Capital Expenditures
Capital expenditures in the second quarter of 2014 were
$101.5 million, including
$29.1 million at Kittila,
$19.1 million at LaRonde,
$11.8 million at Meadowbank,
$8.9 million at Pinos Altos, $7.8
million at Goldex, $5.3
million at Lapa, $3.9 million
at La India and $3.4 million at
Creston Mascota. Capital expenditures at development projects
included $11.4 million at
Meliadine.
On a 100% basis, capital expenditures at the Canadian Malartic
Mine in the second quarter of 2014 were C$42.1 million (approximately C$67.1 million for the first six months of
2014).
Capital expenditures for the first six months of 2014 were
$200.3 million. For 2014,
capital expenditures are expected to total approximately
$468 million, representing a
$37 million increase from the
previously announced figure which is due primarily to the
acquisition of Osisko but also additional expenditures at Goldex
for acceleration of the ramp into the D Zone, and at Kittila to
reflect the completion of the plant expansion ahead of plan.
Liquidity - Credit Rating Maintained
Cash and cash equivalents and short-term investments totaled
$245.0 million at June 30th, 2014, up from the March 31, 2014 balance of $184.0 million. The increase in the cash
balance is largely due to the impact of higher production and lower
production costs. The outstanding balance on the Company's
credit facility was $520 million at
June 30, 2014 which increased from
the March 31, 2014 balance of
$120 million as the Company used the
credit facility to fund the acquisition of Osisko. Available bank
lines as of June 30, 2014 are
approximately $680 million.
As at June 30, 2014, the Canadian
Malartic GP (the "Partnership"),
through which the Company and Yamana hold their 50% interests in
the Canadian Malartic mine, had C$40.1
million of cash and cash equivalents and assumed long term
debt of C$124.3 million of loans,
C$75 million of convertible
debentures and C$75.3 million of
capital lease obligations.
At current gold prices and related forecasts, Agnico Eagle
remains well within its debt covenants. In addition to the
Company's credit facility referred to above, the Company's debt is
comprised of five separate series of notes, whose maturities are
spread out over a seven-year period, with the earliest maturity
being $115 million in 2017.
On June 25, 2014 DBRS reaffirmed
Agnico Eagle's investment grade credit rating at BBB (low) with a
stable trend.
Revised 2014 Tax Guidance
For 2014, the jurisdictional tax rates are expected to be:
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
The Company's overall tax rate is expected to be between 35% to
40%. Previous guidance was 40% to 45%. The decrease is
largely due to the high proportion of the profit being generated by
the Meadowbank mine, which continues to be sheltered by tax
pools.
Northern Business Operating Review
LaRonde-Good Cost Performance Continues
The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988.
Current mine life is estimated to be through 2024.
On a period-over-period basis, tonnes milled were relatively
flat with an average of 6,197 tonnes per day ("tpd") processed in
the second quarter of 2014, compared to an average of 6,143 tpd in
the corresponding quarter of 2013.
Subsequent to quarter end, in July, a planned three week
shutdown was carried out to upgrade the production and service
hoist drives at the Penna shaft. During the shutdown,
additional maintenance activities were also undertaken underground
and at the mill. Due to the shutdown, the mining sequence in
the second quarter of 2014 was modified. As a result, fewer
tonnes were mined from the deeper portion of the LaRonde mine with
more ore coming from upper level stopes, which had lower gold
grades, but higher base metal grades.
With the maintenance now completed, the proportion of production
from the deeper mine is expected to increase over the balance of
the year as the deeper, higher grade Level 293 pyramid advances to
maturity. The mined grade is expected to continue to increase
towards the average reserve grade over the next several years.
Minesite costs per tonne4 were approximately
C$91 in the second quarter of
2014. Compared to the C$103 per
tonne experienced in the second quarter of 2013. The decrease
in costs is largely due to reduced labor and contractor costs, and
lower material costs (electricity and consumables).
For the first six months of 2014, the LaRonde mill processed an
average of 6,194 tpd, compared to 6,372 tpd in the first six months
of 2013. Minesite costs per tonne were approximately
C$95, compared to C$100 per tonne in the first six months of 2013.
Costs were lower due to the reasons described above in spite of the
lower throughput.
On a per ounce basis LaRonde's total cash costs per ounce were
$691 on a by-product basis in the
second quarter of 2014 on production of 48,494 ounces of
gold. This compares with the second quarter of 2013 when
total cash costs per ounce were $927
on a by-product basis on production of 46,119 ounces of gold.
The increased production in the second quarter of 2014 is due to
slightly higher grades and higher tonnage processed. The
considerable improvement in total cash costs is related to lower
minesite costs per tonne and higher by-product (zinc) credits in
the 2014 period. In addition, there was also a negative
settlement adjustment on concentrate shipments of $90 per ounce in the second quarter of 2013
compared to the second quarter of 2014.
In the first six months of 2014, LaRonde produced 107,846 ounces
of gold at total cash costs per ounce of $642 on a by-product basis. This is in
contrast with the first half of 2013 when the mine produced 85,192
ounces of gold at total cash costs per ounce of $831 on a by-product basis. The reasons for
the higher production and lower costs in the 2014 period are
outlined above.
Post-2014, LaRonde is expected to increase production over the
next several years to an average life of mine production of more
than 300,000 ounces of gold per year, reflecting the higher gold
grades expected at depth.
_______________________
4 Minesite costs per tonne is a non-GAAP measure.
For reconciliation to production costs, see "Reconciliation of
non-US GAAP Financial Performance Measures - Reconciliation of
Production Costs to Minesite Costs per Tonne by Mine" contained
herein. See also "Note Regarding Certain Measures of
Performance".
Canadian Malartic GP -
Optimization and Cost Saving Studies Underway
In June 2014, Agnico Eagle and
Yamana acquired all issued and outstanding common shares of Osisko,
and created the 50:50 Partnership that owns and operates the
Canadian Malartic mine through a joint management committee.
The Partnership acquired the Canadian Malartic mine on June 16, 2014.
During the second quarter of 2014, the Canadian Malartic mill
processed an average of 50,673 tpd, with minesite costs per tonne
of approximately C$20. The second
quarter included a 5 day scheduled shutdown for mill
maintenance.
For the first six months of 2014, the Canadian Malartic mill
processed an average of 49,584 tpd, with minesite costs per tonne
of approximately C$20
For the full second quarter of 2014, production at the Canadian
Malartic mine (on a 100% basis) was 133,181 ounces of gold at a
total cash cost per ounce of $645 on
a by-product basis. Production from June 16 to June 30, 2014 (on a 100% basis) was
23,756 ounces of gold at a total cash cost per ounce of
$614 on a by-product basis. Agnico
Eagle's 50% share of attributable production for these 15 days was
11,878 ounces of gold. Minesite costs per tonne for the above
mentioned 15 day period were C$21.
In the first six months of 2014, the Canadian Malartic mine
produced 273,211 ounces of gold (on a 100% basis). Canadian
Malartic's total cash costs per ounce were $610 on a by-product basis in the first half of
2014. re
The Partnership is in the process of completing a new NI 43-101
report on the Canadian Malartic mine. This report is expected
to be completed later in August
2014.
In 2014, ore grades are expected to average 1.02 g/t gold with
recoveries of approximately 89% and an average strip ratio of 2.6
to 1.0. Minesite costs per tonne are expected to be
approximately C$21. For the
full year, the Canadian Malartic mine is forecast to produce
510,000 to 530,000 ounces (on a 100% basis), with total cash costs
per ounce of $695 on a by-product
basis.
Total cash costs on a by-product basis are expected to increase
in the second half of 2014 largely due to inclusion of the 5% NSR
royalty (approximately $65 per ounce
annually), increased operating costs associated with the Gouldie
pit (approximately C$11.7 million),
increased drilling costs in the north part of the pit to reduce
noise and vibration (approximately C$6.6
million), and increased cyanide consumption (approximately
C$6.7 million).
Total capital costs for 2014 at Malartic (on a 100% basis) are
estimated at approximately C$169.3million. Capital costs are higher
than the original Osisko forecast of C$126.0
million primarily due to the acceleration of activities at
the Gouldie pit to increase mining flexibility (approximately
$C13.0 million), increased
capitalized stripping costs (approximately $C12.0 million), and the addition of extra mining
equipment (approximately $C9.0
million).
Potential Opportunities to Optimize the Canadian Malartic
Operations
By the beginning of 2015, the Company believes that there is
good potential to refine and improve the Canadian Malartic mining
operation. Studies are currently underway to fully explore
synergies and opportunities for optimization of the asset.
Potential initiatives include:
- Projects to improve or expand the current crushing and grinding
capacity, as the mine will be generating additional ore stockpiles
in the coming years.
- Savings on procurement of consumables and equipment (Abitibi
synergies).
- Improvement of drilling and blasting techniques in the open pit
(fragmentation).
- Empowering the workforce to reduce/optimize minesite costs and
a reduction in Osisko's head office costs (annual savings of
approximately C$12.0 to C$15.0
million).
- Optimization of the mine plan.
An update on the optimization plan is expected to be presented
by the Partnership at the end of the third quarter of 2014.
Updated guidance for 2015 and 2016 will be included in Agnico
Eagle's regular three-year guidance to be provided in February 2015.
Osisko Exploration Portfolio - Upper Beaver to be the Main
Focus
In addition to being the operators at the Canadian Malartic
mine, Agnico Eagle and Yamana will also jointly explore and
consider the development potential at the jointly held Kirkland Lake assets, and continue exploration
at the Pandora property.
Prior to the completion of the acquisition, Osisko drilled 215
exploration holes totaling approximately 94,000 metres on their key
exploration holdings. A breakdown of the drilling is shown in the
table below.
Exploration drilling summary for the Osisko Exploration
Portfolio, January 1 to June 30,
2014
|
|
|
Project |
Year-to-date, 2014 |
|
No.
holes |
Total length
(metres) |
|
|
|
Canadian Malartic |
28 |
17,744 |
|
|
|
Pandora/Wood-Pandora |
12 |
4,136 |
|
|
|
Kirkland Lake |
175 |
71,994 |
|
|
|
Total |
215 |
93,874 |
|
|
|
Two rigs are still drilling on the Upper Beaver and Canadian
Kirkland properties. Data from these programs are being
reviewed with the intent of prioritizing areas for follow-up
work. Work programs, budgets and a strategic plan to develop
the Kirkland Lake camp are
expected to be released later this fall.
Lapa - Higher Grades Expected from Zulapa Zone 7 in the
Fourth Quarter 2014
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in
May 2009. Current mine life is
estimated to be through 2016.
The Lapa circuit at the LaRonde mill processed an average of
1,789 tpd in the second quarter of 2014, slightly higher than the
1,745 tpd processed in the second quarter of 2013.
Minesite costs per tonne were C$107 in the second quarter of 2014, compared to
C$110 in the second quarter of
2013. Despite mining at a deeper depth the lower minesite
costs in the current quarter is due to lower labor costs and
continued cost reduction efforts versus the comparable period last
year.
For the first six months of 2014, the Lapa mill processed an
average of 1,769 tpd, compared to 1,761 tpd in the first six months
of 2013. Minesite costs per tonne were approximately
C$108, slightly below the
C$112 per tonne in the first six
months of 2013 due to reasons explained above.
Payable production in the second quarter of 2014 was 18,821
ounces of gold at total cash costs per ounce of $847 on a by-product basis. This compares
with the second quarter of 2013, when production was 23,178 ounces
of gold at total cash cost per ounce of $720 on a by-product basis. In the current
period, the decrease in gold production and higher total cash costs
per ounce were generally due to the processing of lower gold grades
compared to the same quarter last year.
In the first six months of 2014, Lapa produced 42,230 ounces of
gold at total cash costs per ounce of $747 on a by-product basis. This compares to
the first half of 2013 when the mine produced 50,046 ounces of gold
at total cash costs per ounce of $699
on a by-product basis. The lower production and higher costs
in the 2014 period are due to the reasons outlined above.
During the second quarter of 2014, gold grades were lower than
forecast due to the mining of lower grade stopes in the deep zone
and on the flanks of the deposit. In the second half of 2014,
grades are expected to improve with the optimization of the mine
plan and the start of mining in the higher grade Zulapa 7 zone.
Goldex Mine - Excellent Cost Performance, Mill Ramp up to
6,000 tpd Ahead of Schedule
The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining
operations in the original Goldex Extension Zone (GEZ) orebody were
suspended in October 2011 (see
October 19, 2011 news release).
Mining operations at the GEZ remain suspended. In July 2012, the M and E satellite zones were
approved for development, and these zones achieved commercial
production in October 2013.
The Goldex mill processed an average of 5,692 tpd in the second
quarter of 2014 and throughput is expected to increase to
approximately 6,000 tpd by year end 2014.
Minesite costs per tonne at Goldex were approximately
C$33 in the second quarter of 2014.
Minesite costs per tonne were significantly lower than 2014
guidance of C$37, primarily due to
improved underground productivity, higher than forecast tonnage and
reduced labor costs.
For the first six months of 2014, the Goldex mill processed an
average of 5,544 tpd. Minesite costs per tonne were approximately
C$32.
Payable gold production in the second quarter of 2014 was 23,929
ounces at a total cash cost per ounce of $654 on a by-product basis. In the first six
months of 2014, Goldex produced 43,359 ounces of gold at total cash
costs per ounce of $678 on a
by-product basis.
Development activities are progressing on the M2, M5 and E2
satellite zones. A new surface portal has been collared and the old
ramp is being refurbished to provide access to the M3 and M4
zones. This ramp will also facilitate the movement of
equipment from surface to the underground. In addition,
accelerated development of the exploration ramp into the DX zone
(the top of the Deep zone) is underway. This ramp will provide
access for additional exploration drilling.
These satellite zones could have the potential to further extend
the mine's life. Economies of scale may also be available if
additional zones are developed as the mill has the ability to
operate at over 8,000 tpd. Studies are currently underway to fully
evaluate the potential of these zones, with initial results
expected in early 2015. The Goldex mining approach may also
open up other mining opportunities in the region.
Meadowbank - Record Throughput and Continued Cost Control
Drive Strong Performance
The 100% owned Meadowbank mine is located in Nunavut, Canada. Current mine life is
estimated to be through 2018.
The Meadowbank mill processed an average of 11,549 tpd in the
second quarter of 2014. This compares with 11,303 tpd in the
second quarter of 2013. The record throughput in the 2014
period is largely due to the continued optimization of the mine
plan and improved equipment availability. The secondary crusher has
consistently exceeded the initial design rate of 8,500 tpd since
startup.
Minesite costs per tonne were C$71
in the second quarter of 2014, compared with C$83 per tonne in the second quarter of
2013. Costs are lower in the 2014 period due to more tonnes of
ore processed in 2014 versus 2013, improved productivity, as well
as ongoing cost reduction initiatives. In addition, seasonal costs
were deferred into the second half of 2014.
For the first six months of 2014, the Meadowbank mill processed
an average of 11,299 tpd, compared to 11,311 tpd in the first six
months of 2013. Minesite costs per tonne were approximately
C$73 in the first six months of 2014,
below the C$85 per tonne in the
comparable 2013 period due to reasons described above.
Payable production in the second quarter of 2014 was 118,161
ounces of gold at total cash costs per ounce of $577 on a by-product basis. This compares
with payable production in the second quarter of 2013 of 91,873
ounces of gold at total cash costs per ounce of $912 on a by-product basis. The increase in
year over year production and lower total cash costs reflects
higher grades, increased throughput, higher recoveries, and lower
minesite costs per tonne compared to the previous period.
In the first six months of 2014, Meadowbank produced 274,605
ounces of gold at total cash costs per ounce of $496 on a by-product basis. In the first
half of 2013 the mine produced 173,691 ounces of gold at total cash
costs per ounce of $986 on a
by-product basis. The stronger 2014 results are due to the
reasons outlined above.
Production in the second half of 2014 will be considerably lower
than the first half of the year (approximately a 60:40 split
between the first half and second half as previously reported in
the Company's May 1, 2014 news
release) as grades are expected to be closer to reserve grade with
the completion of mining activities in the Goose pit by year-end
and a higher percentage of ore being sourced from the lower grade
Vault pit.
Exploration drilling has expanded the scope of the
mineralization at the IVR property, located 50 kilometres northwest
of the Meadowbank mine. A total of 48 drill holes (7,423
metres) have been completed since the program began in 2013. The
best intercepts to date include 26.1 grams per tonne ("g/t") gold
(capped) over 4.8 metres, and 27.6 g/t gold (capped) over 3.0
metres estimated true width. A phase two exploration program
consisting of 20,000 metres of drilling is currently
underway. For additional details on this project, readers are
referred to Agnico Eagle's mid-year exploration news release dated
July 30, 2014.
Kittila Mine - Plant Expansion to be Completed Ahead of
Schedule
The 100% owned Kittila mine in northern Finland achieved commercial production in
May 2009. Current mine life is
estimated to be through 2037.
In the second quarter of 2014, the Kittila mill processed an
average of approximately 2,720 tpd. In the second quarter of 2013,
the Kittila mill was idle for most of the quarter due to the
relining of the autoclave, as such tonnage comparisons with the
prior period are not considered to be relevant.
Minesite costs per tonne at Kittila were approximately €81 in
the second quarter of 2014. Given the autoclave relining,
minesite costs per tonne in the 2013 comparable period are also not
considered relevant.
For the first six months of 2014, the Kittila mill processed an
average of 3,065 tpd, compared to 1,761 tpd in the first six months
of 2013. The higher throughput in 2014 is due to the reason
mentioned above.
Minesite costs per tonne at Kittila were approximately €77 in
the first six months of 2014, unchanged from €77 in the comparable
period of 2013. Minesite costs per tonne in the 2013 period only
reflect 104 days of operation due to the autoclave relining.
Second quarter 2014 gold production at Kittila was 31,830 ounces
with a total cash cost per ounce of $862 on a by-product basis. Gold recoveries in
the 2014 period were slightly below normal due to temporary site
water balance issues. In the second quarter of 2013 the mine
produced 5,389 ounces. Cash costs and production are not
considered comparable due to the relining of the autoclave
mentioned above.
In the first six months of 2014, Kittila produced 70,382 ounces
of gold at a total cash cost per ounce of $825 on a by-product basis. This is in
contrast to the first half of 2013, when the mine produced 48,534
ounces of gold at total cash costs per ounce of $624 on a by-product basis. The higher cash
costs in 2014 are mainly due to lower grades processed and
production in the 2013 period was only 104 days due to the
autoclave relining.
The previously announced Kittila mill expansion has progressed
well and is now expected to be completed by the end of 2014, well
ahead of the original mid-2015 schedule. A two week tie in period
will be completed in September
2014. The expansion has provided upgrades to both the
grinding and flotation circuits and the oxidation and cyanidation
circuits.
In addition, the expansion has been increased from 750 tpd to
1000 tpd, which is expected to enable the Kittila mill to process
over 4,000 tpd. In order to utilize this increased capacity,
the Company is looking at a combination of increased mine
throughput and the processing of surface stockpiles. Despite
the increase in scope, the Company expects the expansion will be
completed within the original budget.
The Company has now completed studies on the Rimpi zone and
shaft, and developed a strategy to further develop the Kittila
orebody. As part of this strategy, the immediate focus will
be on developing the Rimpi zone through a ramp system to provide
sufficient future feed to the mill and enhance Kittila's production
profile.
The decision to develop a shaft at Kittila has been put on hold
for the next 2-3 years, in order to prioritize development of the
Rimpi zone and further delineate the orebody at depth. A
recent drill hole has demonstrated the continuation of the Suuri
mineralization at a vertical depth of 1340 metres (see Agnico Eagle
mid-year exploration news release dated July
30, 2014). The bottom of the current reserve is at a depth
of approximately 1,100 metres.
Meliadine - 2014 Drilling Expected to Further Expand Resource
Base
Located near Rankin Inlet, Nunavut,
Canada, the Meliadine project was acquired in July 2010, and is one of Agnico Eagle's largest
gold projects in terms of resources. Underground development,
exploration drilling, technical studies and permitting have
continued in the second quarter of 2014.
In the first half of 2014, 118 exploration and conversion drill
holes totaling 30,900 metres were completed. The exploration
ramp has been extended by 527 metres. Recent results are
expected to expand gold resources at the Pump, Wesmeg/Normeg and
Wolf deposits. An updated technical study is expected in late 2014.
For additional details on this project readers are referred to
Agnico Eagle's mid-year exploration news release dated July 30, 2014.
Southern Business Operating Review
Pinos Altos - Strong Cash
Flow Generation Continues
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009. Current mine life is estimated to be through
2029.
The Pinos Altos mill processed
an average of 5,513 tpd in the second quarter of 2014, compared to
5,024 tpd per day processed in the second quarter of
2013. During the second quarter of 2014, approximately 154,200
tonnes of ore were stacked on the heap leach at Pinos Altos, compared to 209,000 tonnes in the
comparable 2013 period.
Minesite costs per tonne were $44
in the second quarter of 2014, compared to $50 per tonne in the second quarter of
2013. Costs in the 2014 period were favorably impacted by
shorter hauls and better drilling and blasting performance (lower
explosives consumption) in the open pit and lower consumable costs
in the mill and the underground compared to the 2013 period.
Minesite costs per tonne at Pinos
Altos are affected by normal operating variances in the
proportion of heap leach to mill ore, the proportion of underground
ore to open pit ore, variations in the proportion of waste to ore
mined and variations in the currency exchange rate.
For the first six months of 2014, the Pinos Altos mill processed an average of 5,448
tpd, compared to 5,136 tpd processed in the first half of
2013. Approximately 293,300 tonnes of ore were stacked on the
Pinos Altos leach pad during the
first six months of 2014, compared to 462,100 tonnes in the prior
year period. Minesite costs per tonne were approximately
$46 compared to $45 per tonne in the first half of 2013 with
variance due to the proportion of heap leach to mill ore and the
proportion of underground ore to open pit, and variations in the
proportion of waste to ore mined, and variations in the currency
exchange rate.
Payable production in the second quarter of 2014 was 43,978
ounces of gold at a total cash cost per ounce of $481 on a by-product basis. This compares
with production of 47,383 ounces at a total cash cost per ounce of
$496 on a by-product basis in the
second quarter of 2013. Production in the 2014 period was
lower than the comparable 2013 period due to lower grades processed
in the mill and fewer heap leach tonnes placed. The lower
total cash costs in the 2014 period are due to the reasons outlined
above.
In the first six months of 2014, Pinos
Altos produced 89,195 ounces of gold at total cash costs per
ounce of $465 on a by-product
basis. This is in contrast to the first half of 2013 when the
mine produced 91,547 ounces of gold at total cash costs per ounce
of $402 on a by-product
basis. The lower cash costs in the first six months of 2013
are primarily due to higher silver production and higher realized
silver prices in the first quarter of 2013 compared to the first
quarter of 2014.
Shaft sinking activities at Pinos
Altos continued during the quarter with a change over from
Alimak mining to using a Galloway
and jumbo drilling rig. The shaft is currently excavated to a depth
of 228 metres with concrete lining to a depth of 212 metres.
The ultimate shaft depth is currently expected to be 793
metres. The shaft project will allow better matching of the
mill capacity with the future mining capacity at Pinos Altos when the open pit mining operation
begins to wind down as planned in the next several years.
Creston Mascota - Phase 3 Leach Pad Now Commissioned
The Creston Mascota heap leach has been operating as a satellite
operation to the Pinos Altos mine
since late 2010.
Approximately 394,800 tonnes of ore were stacked on the Creston
Mascota leach pad during the second quarter of 2014, compared to
approximately 386,000 tonnes stacked in the second quarter of
2013. Minesite costs per tonne at Creston Mascota were
$18 in the second quarter of 2014,
compared to $14 in the second quarter
of 2013. Costs were higher in the 2014 period primarily due to
increased equipment costs and higher contract labor rates.
For the first six months of 2014, approximately 773,700 tonnes
of ore were stacked on the Creston Mascota leach pad, compared to
616,100 tonnes in the prior year period. Stacking resumed at
Creston Mascota in April 2013,
following the suspension of activities on the Phase one leach pad
in October 2012.
For the first six months of 2014, mine site costs per tonne at
Creston Mascota were $18, compared to $14 per tonne in the first six months of 2013.
Costs were higher in the 2014 period due to the reasons outlined
above.
Payable gold production at Creston Mascota in the second quarter
of 2014 was 11,159 ounces at a total cash cost per ounce of
$616 on a by-product basis.
This compares to 10,147 ounces at a total cash cost per ounce of
$498 on a by-product basis during the
second quarter of 2013. The higher production in the 2014
period is reflective of more tonnes stacked, while the increased
costs are reflective of higher minesite costs per tonne in the 2014
period.
Payable gold production for the first six months of 2014 was
21,476 ounces at a total cash cost per ounce of $615 on a by-product basis. This compares
to 12,054 ounces at a total cash cost per ounce of $498 on a by-product basis in the first six
months of 2013. The higher production and higher costs in the
2014 period are due to the reasons outlined above.
The expanded capacity for the Creston Mascota agglomerator and
overland conveyors was installed in May and commissioned in early
June. In addition, the Creston Mascota Phase 3 leach pad was
completed in June and has been fully commissioned.
La India - Ramp-up
Continues, Crushing Circuit Refinements Expected to Enhance
Stacking Rates
The La India mine in Sonora,
Mexico, located approximately 70 kilometres from the
Company's Pinos Altos mine, was
acquired in November 2011 through the
purchase of Grayd Resources, which included a 56,000 hectare land
position in the Mulatos Gold belt. Commissioning of the mine
commenced ahead of schedule in the third quarter of 2013.
Commercial production at La India was achieved as at February 1, 2014.
Approximately 1,137,500 tonnes of ore were stacked on the La
India leach pad during the second quarter of 2014. Stacking rates
averaged approximately 12,500 tpd during the quarter.
Minesite costs per tonne at La India were $8 in the second quarter of 2014.
In the first six months of 2014, approximately 2,156,400 tonnes
of ore were stacked on the La India leach pad, with stacking rates
averaging approximately 11,914 tpd. Minesite costs per tonne
at La India were $8 in the first half
of 2014.
Payable gold production in the second quarter of 2014 was 17,809
ounces at a total cash cost per ounce of $457 on a by-product basis.
For the first six months of 2014, La India produced 31,509
ounces of gold, including 3,492 ounces of pre-commercial production
at total cash cost per ounce of $446
on a by-product basis.
Operations continue to ramp up with month-over-month increases
in production and planned modifications to the crushing and
stacking circuits are expected to be completed during the third
quarter of this year. Total cash costs were favourable due to
slightly higher head grades and lower stripping costs compared to
anticipated levels.
La India closed the first
"water year" (July 1, 2013 to
June 30, 2014) with approximately
200,000 m3 in storage. The third quarter of 2014 will be the
first rainy season operating at La India, the Company expects that
there will be some dilution effects and operating impacts during
this period but remains confident in the production guidance for La
India in 2014.
Dividend Reinvestment Program
Please follow the link below for information on the Company's
dividend reinvestment program.
Dividend Reinvestment Plan
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its nine mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these regions as well as in the United States. The Company and its
shareholders have full exposure to gold prices due to its
long-standing policy of no forward gold sales. Agnico Eagle has
declared a cash dividend every year since 1983.
Further Information
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'' and ''minesite costs per tonne'' that are
not recognized measures under US GAAP. This data may not be
comparable to data presented by other gold producers. For a
reconciliation of these measures to the most directly comparable
financial information presented in the consolidated financial
statements prepared in accordance with US GAAP and for an
explanation of how management uses these measures, see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. Total cash costs per ounce of gold produced is
presented on both a by-product basis (deducting by-product metal
revenues from production costs) and co-product basis (before
by-product metal revenues). Total cash costs per ounce of gold
produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income (loss) for by-product revenues, unsold concentrate inventory
production costs, non-cash reclamation provisions, deferred
stripping costs, smelting, refining and marketing charges and other
adjustments, and then dividing by the number of ounces of gold
produced. Total cash costs per ounce of gold produced on a
co-product basis is calculated in the same manner as total cash
costs per ounce of gold produced on a by-product basis except that
no adjustment for by-product metal revenues is made. Accordingly,
the calculation of total cash costs per ounce of gold produced on a
co-product basis does not reflect a reduction in production costs
or smelting, refining and marketing charges associated with the
production and sale of by-product metals. 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 cost per ounce of
gold produced on a by-product basis measure allows management to
assess a mine's cash generating capabilities at various gold
prices. Management is aware that these per ounce measures of
performance can be affected by fluctuations in and exchange rates.
and, in the case of total cash costs per ounce of gold produced on
a by-product basis, by-product metal prices. Management
compensates for these inherent limitations by using these measures
in conjunction with minesite costs per tonne (discussed below) as
well as other data prepared in accordance with US GAAP. Management
also performs sensitivity analyses in order to quantify the effects
of fluctuating exchange rates and metal prices. This news
release also contains information as to estimated future total cash
costs per ounce, all-in sustaining costs and minesite costs per
tonne. The estimates are based upon the total cash costs per ounce,
all-in sustaining costs and minesite costs per tonne that the
Company expects to incur to mine gold at its mines and projects
and, consistent with the reconciliation of these actual costs
referred to above, do not include production costs attributable to
accretion expense and other asset retirement costs, which will vary
over time as each project is developed and mined. It is therefore
not practicable to reconcile these forward-looking non-US GAAP
financial measures to the most comparable US GAAP measure.
The scientific and technical information contained in this news
release has been reviewed by Alain
Blackburn, Ing., Senior Vice-President, Exploration and a
"Qualified Person" for the purposes of NI 43-101.
Forward-Looking Statements
The information in this news release has been prepared as at
July 30, 2014. Certain statements
contained in this document constitute "forward-looking statements"
within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". When used in this document, the words
"anticipate", "expect", "estimate", "forecast", "will", "planned"
and similar expressions are intended to identify forward-looking
statements. Such statements and information include without
limitation: the Company's forward-looking production guidance,
including estimated ore grades, project timelines, drilling
results, metal production, mine estimates horizons, production,
total cash costs per ounce, minesite costs per tonne; all-in
sustaining costs and cash flows; the estimated timing and
conclusions of technical reports and other studies; the methods by
which ore will be extracted or processed; statements concerning
expansion projects, recovery rates, mill throughput, and projected
exploration expenditures, including costs and other estimates upon
which such projections are based; estimates of depreciation
expense, general and administrative expense and tax rates; the
impact of maintenance shutdowns; statements regarding timing and
amounts of capital expenditures and other assumptions; estimates of
future reserves, resources, mineral production, optimization
efforts and sales; estimates of mine life; estimates of future
mining costs, total cash costs, minesite costs, all-in sustaining
costs and other expenses; estimates of future capital expenditures
and other cash needs, and expectations as to the funding thereof;
statements and information as to the projected development of
certain ore deposits, including estimates of exploration,
development and production and other capital costs, and estimates
of the timing of such exploration, development and production or
decisions with respect to such exploration, development and
production; estimates of reserves and resources, and statements and
information regarding anticipated future exploration; the
anticipated timing of events with respect to the Company's mine
sites and statements and information regarding the sufficiency of
the Company's cash resources and other statements and information
regarding anticipated trends with respect to the Company's
operations, exploration and the funding thereof. Such statements
and information reflect the Company's views as at the date of this
document and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements and information. Forward-looking statements are
necessarily based upon a number of factors and assumptions that,
while considered reasonable by Agnico Eagle as of the date of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
material factors and assumptions used in the preparation of the
forward looking statements contained herein, which may prove to be
incorrect, include, but are not limited to, the assumptions set
forth herein and in management's discussion and analysis
("MD&A") and the Company's Annual Information Form ("AIF") for
the year ended December 31, 2103
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2013 ("Form 40-F") filed with the
U.S. Securities and Exchange Commission (the "SEC") as well as:
that there are no significant disruptions affecting operations;
that production, permitting and expansion at each of Agnico Eagle's
properties proceeds on a basis consistent with current expectations
and plans; that the relevant metals prices, exchange rates and
prices for key mining and construction supplies will be consistent
with Agnico Eagle's expectations; that Agnico Eagle's current
estimates of mineral reserves, mineral resources, mineral grades
and metal recovery are accurate; that there are no material delays
in the timing for completion of ongoing growth projects; that the
Company's current plans to optimize production are successful; and
that there are no material variations in the current tax and
regulatory environment. Many factors, known and unknown could cause
the actual results to be materially different from those expressed
or implied by such forward looking statements and information. Such
risks include, but are not limited to: the volatility of prices of
gold and other metals; uncertainty of mineral reserves, mineral
resources, mineral grades and mineral recovery estimates;
uncertainty of future production, capital expenditures, and other
costs; currency fluctuations; financing of additional capital
requirements; cost of exploration and development programs; mining
risks; community protests; risks associated with foreign
operations; governmental and environmental regulation; the
volatility of the Company's stock price; and risks associated with
the Company's by-product metal derivative strategies. For a more
detailed discussion of such risks and other factors that may affect
the Company's ability to achieve the expectations set forth in the
forward-looking statements contained in this document, see the AIF
and MD&A filed on SEDAR at www.sedar.com and included in the
Form 40-F filed on EDGAR at www.sec.gov, as well as the Company's
other filings with the Canadian securities regulators and the SEC.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements and information. For a
detailed breakdown of the Company's reserve and resource position
see the AIF or Form 40-F.
AGNICO EAGLE
MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where
noted)
(Unaudited) |
|
|
Three Months Ended |
|
|
Six Months
Ended |
June 30, |
|
|
June 30, |
|
2014 |
|
2013 |
|
|
2014 |
|
2013 |
Operating margin(i) by
mine: |
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
27,820 |
|
$ |
14,372 |
|
|
$ |
70,937 |
|
$ |
47,667 |
|
Lapa mine |
|
8,763 |
|
|
16,643 |
|
|
|
24,000 |
|
|
38,431 |
|
Goldex mine(ii) |
|
13,674 |
|
|
- |
|
|
|
24,253 |
|
|
- |
|
Meadowbank mine |
|
80,644 |
|
|
32,382 |
|
|
|
200,615 |
|
|
68,885 |
|
Canadian Malartic
mine(iii) |
|
547 |
|
|
- |
|
|
|
547 |
|
|
- |
|
Kittila mine |
|
14,002 |
|
|
(112) |
|
|
|
33,039 |
|
|
44,844 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
33,324 |
|
|
41,708 |
|
|
|
71,921 |
|
|
97,746 |
|
Creston Mascota deposit at Pinos
Altos |
|
7,336 |
|
|
5,480 |
|
|
|
14,847 |
|
|
3,269 |
|
La India mine(iv) |
|
12,678 |
|
|
- |
|
|
|
26,305 |
|
|
- |
Total operating
margin(i) |
|
198,788 |
|
|
110,473 |
|
|
|
466,464 |
|
|
300,842 |
Amortization of property, plant and
mine development |
|
77,570 |
|
|
70,128 |
|
|
|
151,107 |
|
|
140,199 |
Exploration, corporate and other |
|
62,857 |
|
|
63,805 |
|
|
|
103,091 |
|
|
135,495 |
Income (loss) before income and mining
taxes and other items |
|
58,361 |
|
|
(23,460) |
|
|
|
212,266 |
|
|
25,148 |
Income and mining taxes expense |
|
18,360 |
|
|
920 |
|
|
|
63,413 |
|
|
25,669 |
Loss on equity investment |
|
2,325 |
|
|
- |
|
|
|
2,325 |
|
|
- |
Net income (loss) for the
period |
$ |
37,676 |
|
$ |
(24,380) |
|
|
$ |
146,528 |
|
$ |
(521) |
Net income (loss) per share —
basic (US$) |
$ |
0.20 |
|
$ |
(0.14) |
|
|
$ |
0.81 |
|
$ |
(0.00) |
Net income (loss) per share —
diluted (US$) |
$ |
0.20 |
|
$ |
(0.14) |
|
|
$ |
0.81 |
|
$ |
(0.00) |
Cash flows: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash provided by operating
activities |
$ |
197,709 |
|
$ |
75,298 |
|
|
$ |
445,438 |
|
$ |
221,370 |
Cash used in investing activities |
$ |
(536,264) |
|
$ |
(218,282) |
|
|
$ |
(641,885) |
|
$ |
(359,761) |
Cash provided by (used in) financing
activities |
$ |
395,895 |
|
$ |
18,677 |
|
|
$ |
297,808 |
|
$ |
(50,827) |
Realized prices (US$): |
|
|
|
|
|
|
|
|
|
|
|
|
Gold (per ounce) |
$ |
1,291 |
|
$ |
1,336 |
|
|
$ |
1,300 |
|
$ |
1,474 |
Silver (per ounce) |
$ |
19.45 |
|
$ |
18.72 |
|
|
$ |
20.06 |
|
$ |
23.77 |
Zinc (per tonne) |
$ |
2,142 |
|
$ |
1,753 |
|
|
$ |
2,096 |
|
$ |
1,895 |
Copper (per tonne) |
$ |
6,893 |
|
$ |
6,551 |
|
|
$ |
6,594 |
|
$ |
7,012 |
Payable
production(v): |
|
|
|
|
|
|
|
|
|
|
|
|
Gold (ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
48,494 |
|
|
46,119 |
|
|
|
107,846 |
|
|
85,192 |
|
|
Lapa mine |
|
18,821 |
|
|
23,178 |
|
|
|
42,230 |
|
|
50,046 |
|
|
Goldex mine(ii) |
|
23,929 |
|
|
- |
|
|
|
43,359 |
|
|
- |
|
|
Meadowbank mine |
|
118,161 |
|
|
91,873 |
|
|
|
274,605 |
|
|
173,691 |
|
|
Canadian Malartic
mine(iii) |
|
11,878 |
|
|
- |
|
|
|
11,878 |
|
|
- |
|
|
Kittila mine |
|
31,830 |
|
|
5,389 |
|
|
|
70,382 |
|
|
48,534 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
43,978 |
|
|
47,383 |
|
|
|
89,195 |
|
|
91,547 |
|
|
Creston Mascota deposit at Pinos
Altos |
|
11,159 |
|
|
10,147 |
|
|
|
21,476 |
|
|
12,054 |
|
|
La India mine(iv) |
|
17,809 |
|
|
- |
|
|
|
31,509 |
|
|
- |
Total gold (ounces) |
|
326,059 |
|
|
224,089 |
|
|
|
692,480 |
|
|
461,064 |
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
345 |
|
|
424 |
|
|
|
694 |
|
|
1,035 |
|
|
Meadowbank mine |
|
25 |
|
|
23 |
|
|
|
51 |
|
|
45 |
|
|
Canadian Malartic
mine(iii) |
|
10 |
|
|
- |
|
|
|
10 |
|
|
- |
|
|
Kittila mine |
|
1 |
|
|
- |
|
|
|
3 |
|
|
2 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
422 |
|
|
605 |
|
|
|
882 |
|
|
1,218 |
|
|
Creston Mascota deposit at Pinos
Altos |
|
18 |
|
|
14 |
|
|
|
34 |
|
|
17 |
|
|
La India mine(iv) |
|
40 |
|
|
- |
|
|
|
67 |
|
|
- |
Total Silver (thousands of
ounces) |
|
861 |
|
|
1,066 |
|
|
|
1,741 |
|
|
2,317 |
Zinc (tonnes) |
|
3,793 |
|
|
3,455 |
|
|
|
5,853 |
|
|
11,694 |
Copper (tonnes) |
|
1,058 |
|
|
1,280 |
|
|
|
2,612 |
|
|
2,362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable metal sold: |
|
|
|
|
|
|
|
|
|
|
|
|
Gold (ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
48,115 |
|
|
46,953 |
|
|
|
106,215 |
|
|
86,541 |
|
|
Lapa mine |
|
18,162 |
|
|
25,644 |
|
|
|
41,613 |
|
|
49,583 |
|
|
Goldex mine(ii) |
|
22,255 |
|
|
- |
|
|
|
41,862 |
|
|
- |
|
|
Meadowbank mine |
|
118,176 |
|
|
87,798 |
|
|
|
265,678 |
|
|
167,810 |
|
|
Canadian Malartic
mine(iii) |
|
16,377 |
|
|
- |
|
|
|
16,377 |
|
|
- |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila mine |
|
31,519 |
|
|
12,752 |
|
|
|
68,948 |
|
|
57,092 |
|
|
Pinos Altos mine |
|
43,058 |
|
|
48,770 |
|
|
|
89,868 |
|
|
93,293 |
|
|
Creston Mascota deposit at Pinos
Altos |
|
10,737 |
|
|
8,112 |
|
|
|
20,965 |
|
|
8,699 |
|
|
La India mine(iv) |
|
15,025 |
|
|
- |
|
|
|
29,657 |
|
|
- |
Total gold (ounces) |
|
323,424 |
|
|
230,029 |
|
|
|
681,183 |
|
|
463,018 |
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
322 |
|
|
487 |
|
|
|
662 |
|
|
1,070 |
|
|
Meadowbank mine |
|
24 |
|
|
23 |
|
|
|
52 |
|
|
45 |
|
|
Canadian Malartic
mine(iii) |
|
15 |
|
|
- |
|
|
|
15 |
|
|
- |
|
|
Kittila mine |
|
1 |
|
|
2 |
|
|
|
3 |
|
|
3 |
|
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
430 |
|
|
640 |
|
|
|
937 |
|
|
1,226 |
|
|
Creston Mascota deposit at Pinos
Altos |
|
18 |
|
|
14 |
|
|
|
32 |
|
|
14 |
|
|
La India mine(iv) |
|
34 |
|
|
- |
|
|
|
60 |
|
|
- |
Total Silver (thousands of
ounces): |
|
844 |
|
|
1,166 |
|
|
|
1,761 |
|
|
2,358 |
Zinc (tonnes) |
|
2,458 |
|
|
5,280 |
|
|
|
4,131 |
|
|
12,279 |
Copper (tonnes) |
|
1,074 |
|
|
1,291 |
|
|
|
2,616 |
|
|
2,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced - Co-product basis (US$)(vi): |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
1,144 |
|
$ |
1,365 |
|
|
$ |
1,047 |
|
$ |
1,553 |
|
Lapa mine |
|
847 |
|
|
720 |
|
|
|
747 |
|
|
699 |
|
Goldex mine(ii) |
|
654 |
|
|
- |
|
|
|
678 |
|
|
- |
|
Meadowbank mine |
|
581 |
|
|
918 |
|
|
|
499 |
|
|
993 |
|
Canadian Malartic
mine(iii) |
|
642 |
|
|
- |
|
|
|
642 |
|
|
- |
|
Kittila mine(vii) |
|
863 |
|
|
- |
|
|
|
826 |
|
|
625 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
667 |
|
|
718 |
|
|
|
666 |
|
|
704 |
|
Creston Mascota deposit at Pinos
Altos(viii) |
|
650 |
|
|
518 |
|
|
|
648 |
|
|
518 |
|
La India mine(iv) |
|
504 |
|
|
- |
|
|
|
497 |
|
|
- |
Weighted average total cash costs per
ounce of gold produced |
|
|
|
|
|
|
|
|
|
|
|
|
- Co-product basis |
$ |
725 |
|
$ |
907 |
|
|
$ |
673 |
|
$ |
956 |
Total cash costs per ounce of gold
produced - By-product basis (US$)(vi): |
|
|
|
|
|
|
|
|
|
|
|
Northern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
$ |
691 |
|
$ |
927 |
|
|
$ |
642 |
|
$ |
831 |
|
Lapa mine |
|
847 |
|
|
720 |
|
|
|
747 |
|
|
699 |
|
Goldex mine(ii) |
|
654 |
|
|
- |
|
|
|
678 |
|
|
- |
|
Meadowbank mine |
|
577 |
|
|
912 |
|
|
|
496 |
|
|
986 |
|
Canadian Malartic
mine(iii) |
|
614 |
|
|
- |
|
|
|
614 |
|
|
- |
|
Kittila mine(vii) |
|
862 |
|
|
- |
|
|
|
825 |
|
|
624 |
Southern Business |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos mine |
|
481 |
|
|
496 |
|
|
|
465 |
|
|
402 |
|
Creston Mascota deposit at Pinos
Altos(viii) |
|
616 |
|
|
498 |
|
|
|
615 |
|
|
498 |
|
La India mine(iv) |
|
457 |
|
|
- |
|
|
|
446 |
|
|
- |
Weighted average total cash costs per
ounce of gold produced |
|
|
|
|
|
|
|
|
|
|
|
|
- By-product basis |
$ |
626 |
|
$ |
785 |
|
|
$ |
579 |
|
$ |
762 |
|
|
Notes: |
|
|
|
(i) |
Operating margin is calculated as revenues from mining
operations less production costs. |
|
|
(ii) |
The Goldex mine's M and E Zones achieved commercial production
on October 1, 2013. |
|
|
(iii) |
On June 16, 2014, Agnico Eagle and Yamana Gold Inc.
(''Yamana'') completed the joint acquisition of 100.0% of the
issued and outstanding common shares of Osisko Mining Corporation
(''Osisko'') by way of their previously announced court-approved
plan of arrangement (''the Arrangement''). As a result of the
Arrangement, Agnico Eagle and Yamana each own 50.0% of Canadian
Malartic GP, which operates the Canadian Malartic mine, and have
formed a joint committee to manage its operations. The
information set out in this table reflects the Company's 50.0%
interest in the Canadian Malartic mine. |
|
|
(iv) |
The La India mine achieved commercial production on February 1,
2014. 3,492 ounces of payable gold production were excluded from
the calculation of total cash costs per ounce of gold produced in
the first quarter of 2014 as they were produced prior to the
achievement of commercial production. |
|
|
(v) |
Payable production is the quantity of mineral produced during a
period contained in products that are or will be sold by the
Company, whether such products are sold during the period or held
as inventory at the end of the period. |
|
|
(vi) |
Total cash costs per ounce of gold produced is not a recognized
measure under US GAAP and this data may not be comparable to data
presented by other gold producers. Total cash costs per ounce of
gold produced is presented on both a by-product basis (deducting
by-product metal revenues from production costs) and co-product
basis (before by-product metal revenues). Total cash costs per
ounce of gold produced on a by-product basis is calculated by
adjusting production costs as recorded in the consolidated
statements of income (loss) for by-product metal revenues, unsold
concentrate inventory production costs, non-cash reclamation
provisions, deferred stripping costs, smelting, refining and
marketing charges and other adjustments, and then dividing by the
number of ounces of gold produced. Total cash costs per ounce of
gold produced on a co-product basis is calculated in the same
manner as total cash costs per ounce of gold produced on a
by-product basis except that no adjustment for by-product metal
revenues is made. Accordingly, the calculation of total cash costs
per ounce of gold produced on a co-product basis does not reflect a
reduction in production costs or smelting, refining and marketing
charges associated with the production and sale of by-product
metals. The Company believes that these generally accepted industry
measures provide a realistic indication of operating performance
and provide useful comparison points between periods. Total cash
costs per ounce of gold produced is intended to provide information
about the cash generating capabilities of the Company's mining
operations. Management also uses these measures to monitor the
performance of the Company's mining operations. As market prices
for gold are quoted on a per ounce basis, using the total cash
costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash generating capabilities
at various gold prices. Management is aware that these per ounce
measures of performance can be affected by fluctuations in exchange
rates and, in the case of total cash costs of gold produced on a
by-product basis, by-product metal prices. Management compensates
for these inherent limitations by using this measure these measures
in conjunction with minesite costs per tonne (discussed below) as
well as other data prepared in accordance with US GAAP. Management
also performs sensitivity analyses in order to quantify the effects
of fluctuating metal prices and exchange rates. |
|
|
(vii) |
Excludes the Kittila mine's results for the second quarter of
2013. Due to scheduled maintenance, the Kittila mine only operated
for 14 days during the second quarter of 2013. |
|
|
(viii) |
Excludes total cash costs per ounce of gold produced for the
Creston Mascota deposit at Pinos Altos in the first quarter of 2013
as a temporary suspension of active leaching was required between
October 1, 2012 and March 13, 2013 due to an unexpected movement of
leached ore at the Phase One leach pad. |
AGNICO EAGLE MINES
LIMITED
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, except share amounts, US
GAAP basis)
(Unaudited) |
|
|
|
As at
June 30, |
|
As at
December 31, |
|
|
2014 |
|
2013 |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
240,773 |
|
$ |
139,101 |
|
Short-term investments |
|
|
4,221 |
|
|
2,217 |
|
Restricted cash |
|
|
30,154 |
|
|
28,723 |
|
Trade receivables |
|
|
57,800 |
|
|
67,300 |
|
Inventories: |
|
|
|
|
|
|
|
|
Ore in stockpiles and on leach pads |
|
|
73,163 |
|
|
51,826 |
|
|
Concentrates and dore bars |
|
|
67,739 |
|
|
46,658 |
|
|
Supplies |
|
|
221,843 |
|
|
253,160 |
|
Income taxes recoverable |
|
|
- |
|
|
18,682 |
|
Available-for-sale
securities |
|
|
71,538 |
|
|
74,581 |
|
Fair value of derivative financial
instruments |
|
|
14,710 |
|
|
5,590 |
|
Other current assets |
|
|
122,224 |
|
|
116,993 |
Total current assets |
|
|
904,165 |
|
|
804,831 |
Other assets |
|
|
59,416 |
|
|
66,394 |
Goodwill |
|
|
39,017 |
|
|
39,017 |
Equity investment |
|
|
1,638,784 |
|
|
- |
Property, plant and mine
development |
|
|
4,067,096 |
|
|
4,049,117 |
|
|
$ |
6,708,478 |
|
$ |
4,959,359 |
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
235,662 |
|
$ |
173,374 |
|
Reclamation provision |
|
|
1,934 |
|
|
3,452 |
|
Interest payable |
|
|
13,869 |
|
|
13,803 |
|
Income taxes payable |
|
|
22,409 |
|
|
7,523 |
|
Capital lease obligations |
|
|
9,714 |
|
|
12,035 |
|
Fair value of derivative financial
instruments |
|
|
34,718 |
|
|
467 |
Total current liabilities |
|
|
318,306 |
|
|
210,654 |
Long-term debt |
|
|
1,320,000 |
|
|
1,000,000 |
Reclamation provision and other
liabilities |
|
|
176,897 |
|
|
178,236 |
Deferred income and mining tax
liabilities |
|
|
603,164 |
|
|
593,320 |
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
Common shares: |
|
|
|
|
|
|
|
|
Outstanding - 209,689,597 common shares issued,
less 1,165,231 shares held in trust |
|
|
4,451,910 |
|
|
3,294,007 |
|
Stock options |
|
|
185,922 |
|
|
174,470 |
|
Contributed surplus |
|
|
37,254 |
|
|
37,254 |
|
Deficit |
|
|
(394,821) |
|
|
(513,441) |
|
Accumulated other comprehensive income
(loss) |
|
|
9,846 |
|
|
(15,141) |
Total shareholders' equity |
|
|
4,290,111 |
|
|
2,977,149 |
|
|
$ |
6,708,478 |
|
$ |
4,959,359 |
AGNICO EAGLE MINES
LIMITED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(thousands of United States dollars, except per share amounts,
US GAAP basis)
(Unaudited) |
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
REVENUES |
|
|
|
|
|
|
|
|
|
|
|
Revenues from mining operations |
$ |
437,794 |
|
$ |
336,424 |
|
$ |
929,561 |
|
$ |
756,846 |
|
|
|
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES AND OTHER INCOME |
|
|
|
|
|
|
|
|
|
|
|
Production (i) |
|
239,006 |
|
|
225,951 |
|
|
463,097 |
|
|
456,004 |
Exploration and corporate development |
|
11,552 |
|
|
11,326 |
|
|
20,970 |
|
|
19,897 |
Amortization of property, plant and mine
development |
|
77,570 |
|
|
70,128 |
|
|
151,107 |
|
|
140,199 |
General and administrative |
|
24,791 |
|
|
28,385 |
|
|
52,030 |
|
|
65,705 |
Impairment loss on available-for-sale
securities |
|
2,419 |
|
|
17,313 |
|
|
2,419 |
|
|
28,308 |
Provincial capital tax |
|
- |
|
|
(1,504) |
|
|
- |
|
|
(1,504) |
Interest expense |
|
15,731 |
|
|
13,735 |
|
|
31,666 |
|
|
27,651 |
Interest and sundry expense |
|
3,370 |
|
|
3,734 |
|
|
2,953 |
|
|
3,946 |
Loss (gain) on derivative financial
instruments |
|
1,344 |
|
|
1,936 |
|
|
(1,984) |
|
|
(1,046) |
Gain on sale of available-for-sale securities |
|
(5,016) |
|
|
- |
|
|
(5,289) |
|
|
- |
Foreign currency translation loss (gain) |
|
8,666 |
|
|
(11,120) |
|
|
326 |
|
|
(7,462) |
Income (loss) before income and mining taxes and
other items |
|
58,361 |
|
|
(23,460) |
|
|
212,266 |
|
|
25,148 |
Income and mining taxes expense |
|
18,360 |
|
|
920 |
|
|
63,413 |
|
|
25,669 |
Loss on equity investment |
|
2,325 |
|
|
- |
|
|
2,325 |
|
|
- |
Net income (loss) for the period |
$ |
37,676 |
|
$ |
(24,380) |
|
$ |
146,528 |
|
$ |
(521) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share - basic |
$ |
0.20 |
|
$ |
(0.14) |
|
$ |
0.81 |
|
$ |
(0.00) |
Net income (loss) per share - diluted |
$ |
0.20 |
|
$ |
(0.14) |
|
$ |
0.81 |
|
$ |
(0.00) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
outstanding (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
185,718 |
|
|
172,572 |
|
|
179,845 |
|
|
172,426 |
Diluted |
|
186,207 |
|
|
172,572 |
|
|
180,246 |
|
|
172,426 |
|
|
Note: |
|
|
|
(i) |
Exclusive of amortization, which is shown
separately. |
AGNICO EAGLE MINES
LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars, US GAAP basis)
(Unaudited) |
|
|
Three
Months Ended
June 30, |
|
Six
Months Ended
June 30, |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
Net income (loss) for the period |
$ |
37,676 |
|
$ |
(24,380) |
|
$ |
146,528 |
|
$ |
(521) |
Add (deduct) items not affecting
cash: |
|
|
|
|
|
|
|
|
|
|
|
Amortization of property, plant
and mine development |
|
77,570 |
|
|
70,128 |
|
|
151,107 |
|
|
140,199 |
Deferred income and mining
taxes |
|
1,607 |
|
|
(562) |
|
|
8,339 |
|
|
6,464 |
Gain on sale of
available-for-sale securities |
|
(5,016) |
|
|
- |
|
|
(5,289) |
|
|
- |
Stock-based compensation |
|
9,587 |
|
|
9,332 |
|
|
23,490 |
|
|
25,609 |
Impairment loss on
available-for-sale securities |
|
2,419 |
|
|
17,313 |
|
|
2,419 |
|
|
28,308 |
Foreign currency translation
loss (gain) |
|
8,666 |
|
|
(11,120) |
|
|
326 |
|
|
(7,462) |
Loss on equity investment |
|
2,325 |
|
|
- |
|
|
2,325 |
|
|
- |
Other |
|
4,769 |
|
|
5,877 |
|
|
5,029 |
|
|
11,008 |
Adjustment for settlement of
environmental remediation |
|
(81) |
|
|
(2,990) |
|
|
(1,015) |
|
|
(5,542) |
Changes in non-cash working capital
balances: |
|
|
|
|
|
|
|
|
|
|
|
Trade receivables |
|
16,611 |
|
|
10,525 |
|
|
9,500 |
|
|
7,749 |
Income taxes |
|
3,109 |
|
|
(4,199) |
|
|
33,568 |
|
|
(8,107) |
Inventories |
|
(9,670) |
|
|
3,789 |
|
|
15,842 |
|
|
31,781 |
Other current assets |
|
(18,431) |
|
|
(15,091) |
|
|
(2,911) |
|
|
(20,856) |
Accounts payable and accrued
liabilities |
|
73,725 |
|
|
24,283 |
|
|
56,320 |
|
|
14,181 |
Interest payable |
|
(7,157) |
|
|
(7,607) |
|
|
(140) |
|
|
(1,441) |
Cash provided by operating
activities |
|
197,709 |
|
|
75,298 |
|
|
445,438 |
|
|
221,370 |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and mine
development |
|
(101,512) |
|
|
(171,773) |
|
|
(200,305) |
|
|
(302,407) |
Equity investment |
|
(464,902) |
|
|
- |
|
|
(464,902) |
|
|
- |
Acquisition of Urastar Gold
Corporation, net |
|
- |
|
|
(10,051) |
|
|
- |
|
|
(10,051) |
(Increase) decrease in short-term
investments |
|
(2,004) |
|
|
2,308 |
|
|
(2,004) |
|
|
3,612 |
Net proceeds from sale of
available-for-sale securities |
|
39,529 |
|
|
- |
|
|
40,142 |
|
|
- |
Purchase of available-for-sale
securities and warrants |
|
- |
|
|
(39,584) |
|
|
(13,385) |
|
|
(52,259) |
(Increase) decrease in restricted
cash |
|
(7,375) |
|
|
818 |
|
|
(1,431) |
|
|
1,344 |
Cash used in investing activities |
|
(536,264) |
|
|
(218,282) |
|
|
(641,885) |
|
|
(359,761) |
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
(12,940) |
|
|
(31,759) |
|
|
(24,913) |
|
|
(61,649) |
Repayment of capital lease
obligations |
|
(2,431) |
|
|
(3,509) |
|
|
(6,683) |
|
|
(6,062) |
Sale-leaseback financing |
|
- |
|
|
- |
|
|
1,027 |
|
|
- |
Proceeds from long-term
debt |
|
730,000 |
|
|
50,000 |
|
|
730,000 |
|
|
90,000 |
Repayment of long-term debt |
|
(330,000) |
|
|
- |
|
|
(410,000) |
|
|
(70,000) |
Repurchase of common shares for
restricted share unit plan |
|
- |
|
|
- |
|
|
(7,518) |
|
|
(19,000) |
Common shares issued |
|
11,266 |
|
|
3,945 |
|
|
15,895 |
|
|
15,884 |
Cash provided by (used in) financing
activities |
|
395,895 |
|
|
18,677 |
|
|
297,808 |
|
|
(50,827) |
Effect of exchange rate changes on
cash and cash equivalents |
|
1,658 |
|
|
(599) |
|
|
311 |
|
|
(1,471) |
Net increase (decrease) in cash and
cash equivalents during the period |
|
58,998 |
|
|
(124,906) |
|
|
101,672 |
|
|
(190,689) |
Cash and cash equivalents,
beginning of period |
|
181,775 |
|
|
232,285 |
|
|
139,101 |
|
|
298,068 |
Cash and cash equivalents, end of
period |
$ |
240,773 |
|
$ |
107,379 |
|
$ |
240,773 |
|
$ |
107,379 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
Interest paid |
$ |
22,305 |
|
$ |
21,715 |
|
$ |
30,456 |
|
$ |
28,547 |
|
|
|
|
|
|
|
|
|
|
|
|
Income and mining taxes
paid |
$ |
13,172 |
|
$ |
9,367 |
|
$ |
21,321 |
|
$ |
31,000 |
AGNICO EAGLE
MINES LIMITED
RECONCILIATION OF NON-US GAAP FINANCIAL PERFORMANCE
MEASURES
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production Costs by
Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
|
June
30, 2014 |
|
June
30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
(thousands of United States
dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Production costs per the interim
unaudited consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
statements of income (loss) and
comprehensive income (loss) |
|
$ |
239,006 |
|
$ |
225,951 |
|
$ |
463,097 |
|
$ |
456,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine |
|
|
45,340 |
|
|
60,624 |
|
|
94,927 |
|
|
118,527 |
Lapa mine |
|
|
14,643 |
|
|
18,094 |
|
|
30,096 |
|
|
34,704 |
Goldex mine(i) |
|
|
15,028 |
|
|
- |
|
|
29,819 |
|
|
- |
Meadowbank mine |
|
|
71,892 |
|
|
90,136 |
|
|
142,961 |
|
|
183,725 |
Canadian Malartic mine
(ii) |
|
|
8,636 |
|
|
- |
|
|
8,636 |
|
|
- |
Kittila mine (iii) |
|
|
27,107 |
|
|
- |
|
|
56,532 |
|
|
27,182 |
Pinos Altos mine |
|
|
30,033 |
|
|
34,511 |
|
|
61,919 |
|
|
66,163 |
Creston Mascota deposit at Pinos
Altos(iv) |
|
|
6,901 |
|
|
4,427 |
|
|
12,929 |
|
|
4,427 |
La India mine(v) |
|
|
7,335 |
|
|
- |
|
|
13,187 |
|
|
- |
Total |
|
$ |
226,915 |
|
$ |
207,792 |
|
$ |
451,006 |
|
$ |
434,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Costs to
Total Cash Costs per Ounce of Gold Produced (vi) by
Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine - Total Cash Costs per
Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
45,340 |
|
$ |
60,624 |
|
$ |
94,927 |
|
$ |
118,527 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
10,700 |
|
|
2,846 |
|
|
19,163 |
|
|
14,885 |
|
Non-cash reclamation provision |
|
|
(584) |
|
|
(534) |
|
|
(1,161) |
|
|
(1,076) |
Cash operating costs (co-product
basis) |
|
$ |
55,456 |
|
$ |
62,936 |
|
$ |
112,929 |
|
$ |
132,336 |
|
By-product metal revenues |
|
|
(21,947) |
|
|
(20,205) |
|
|
(43,645) |
|
|
(61,538) |
Cash operating costs (by-product
basis) |
|
$ |
33,509 |
|
$ |
42,731 |
|
$ |
69,284 |
|
$ |
70,798 |
Gold production (ounces) |
|
|
48,494 |
|
|
46,119 |
|
|
107,846 |
|
|
85,192 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
1,144 |
|
$ |
1,365 |
|
$ |
1,047 |
|
$ |
1,553 |
|
By-product basis |
|
$ |
691 |
|
$ |
927 |
|
$ |
642 |
|
$ |
831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa Mine - Total Cash Costs per
Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
14,643 |
|
$ |
18,094 |
|
$ |
30,096 |
|
$ |
34,704 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
1,307 |
|
|
(1,393) |
|
|
1,466 |
|
|
305 |
|
Non-cash reclamation provision |
|
|
(17) |
|
|
(17) |
|
|
(34) |
|
|
(34) |
Cash operating costs (co-product
basis) |
|
$ |
15,933 |
|
$ |
16,684 |
|
$ |
31,528 |
|
$ |
34,975 |
|
By-product metal revenues |
|
|
(1) |
|
|
(6) |
|
|
(3) |
|
|
(17) |
Cash operating costs (by-product
basis) |
|
$ |
15,932 |
|
$ |
16,678 |
|
$ |
31,525 |
|
$ |
34,958 |
Gold production (ounces) |
|
|
18,821 |
|
|
23,178 |
|
|
42,230 |
|
|
50,046 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
847 |
|
$ |
720 |
|
$ |
747 |
|
$ |
699 |
|
By-product basis |
|
$ |
847 |
|
$ |
720 |
|
$ |
747 |
|
$ |
699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Total Cash Costs per
Ounce of Gold Produced (i)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
15,028 |
|
$ |
- |
|
$ |
29,819 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
627 |
|
|
- |
|
|
(411) |
|
|
- |
|
Non-cash reclamation provision |
|
|
(3) |
|
|
- |
|
|
(6) |
|
|
- |
Cash operating costs (co-product
basis) |
|
$ |
15,652 |
|
$ |
- |
|
$ |
29,402 |
|
$ |
- |
|
By-product metal revenues |
|
|
(5) |
|
|
- |
|
|
(11) |
|
|
|
Cash operating costs (by-product
basis) |
|
$ |
15,647 |
|
$ |
- |
|
$ |
29,391 |
|
$ |
- |
Gold production (ounces) |
|
|
23,929 |
|
|
- |
|
|
43,359 |
|
|
|
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
654 |
|
$ |
- |
|
$ |
678 |
|
$ |
- |
|
By-product basis |
|
$ |
654 |
|
$ |
- |
|
$ |
678 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Mine - Total Cash Costs
per Ounce of Gold Produced (vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
71,892 |
|
$ |
90,136 |
|
$ |
142,961 |
|
$ |
183,725 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
3,168 |
|
|
1,530 |
|
|
4,480 |
|
|
2,620 |
|
Non-cash reclamation provision |
|
|
(578) |
|
|
(387) |
|
|
(1,150) |
|
|
(780) |
|
Stripping costs(viii) |
|
|
(5,825) |
|
|
(6,921) |
|
|
(9,137) |
|
|
(13,045) |
Cash operating costs (co-product
basis) |
|
$ |
68,657 |
|
$ |
84,358 |
|
$ |
137,154 |
|
$ |
172,520 |
|
By-product metal revenues |
|
|
(493) |
|
|
(531) |
|
|
(1,045) |
|
|
(1,192) |
Cash operating costs (by-product
basis) |
|
$ |
68,164 |
|
$ |
83,827 |
|
$ |
136,109 |
|
$ |
171,328 |
Gold production (ounces) |
|
|
118,161 |
|
|
91,873 |
|
|
274,605 |
|
|
173,691 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
581 |
|
$ |
918 |
|
$ |
499 |
|
$ |
993 |
|
By-product basis |
|
$ |
577 |
|
$ |
912 |
|
$ |
496 |
|
$ |
986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine - Total Cash
Costs per Ounce of Gold Produced (ii)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
8,636 |
|
$ |
- |
|
$ |
8,636 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
48 |
|
|
- |
|
|
48 |
|
|
- |
|
Stripping costs(viii) |
|
|
(1,057) |
|
|
- |
|
|
(1,057) |
|
|
- |
Cash operating costs (co-product
basis) |
|
$ |
7,627 |
|
$ |
- |
|
$ |
7,627 |
|
$ |
- |
|
By-product metal revenues |
|
|
(329) |
|
|
- |
|
|
(329) |
|
|
|
Cash operating costs (by-product
basis) |
|
$ |
7,298 |
|
$ |
- |
|
$ |
7,298 |
|
$ |
- |
Gold production (ounces) |
|
|
11,878 |
|
|
- |
|
|
11,878 |
|
|
|
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
642 |
|
$ |
- |
|
$ |
642 |
|
$ |
- |
|
By-product basis |
|
$ |
614 |
|
$ |
- |
|
$ |
614 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine - Total Cash Costs per
Ounce of Gold Produced (iii)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
27,107 |
|
$ |
- |
|
$ |
56,532 |
|
$ |
27,182 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
530 |
|
|
- |
|
|
1,762 |
|
|
(106) |
|
Non-cash reclamation provision |
|
|
(182) |
|
|
- |
|
|
(148) |
|
|
(120) |
Cash operating costs (co-product
basis) |
|
$ |
27,455 |
|
$ |
- |
|
$ |
58,146 |
|
$ |
26,956 |
|
By-product metal revenues |
|
|
(24) |
|
|
- |
|
|
(61) |
|
|
(31) |
Cash operating costs (by-product
basis) |
|
$ |
27,431 |
|
$ |
- |
|
$ |
58,085 |
|
$ |
26,925 |
Gold production (ounces) |
|
|
31,830 |
|
|
- |
|
|
70,382 |
|
|
43,145 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
863 |
|
$ |
- |
|
$ |
826 |
|
$ |
625 |
|
By-product basis |
|
$ |
862 |
|
$ |
- |
|
$ |
825 |
|
$ |
624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine -
Total Cash Costs per Ounce of Gold Produced
(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
30,033 |
|
$ |
34,511 |
|
$ |
61,919 |
|
$ |
66,163 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
913 |
|
|
839 |
|
|
911 |
|
|
1,012 |
|
Non-cash reclamation provision |
|
|
(93) |
|
|
(74) |
|
|
(186) |
|
|
(148) |
|
Stripping costs(viii) |
|
|
(1,531) |
|
|
(1,251) |
|
|
(3,261) |
|
|
(2,570) |
Cash operating costs (co-product
basis) |
|
$ |
29,322 |
|
$ |
34,025 |
|
$ |
59,383 |
|
$ |
64,457 |
|
By-product metal revenues |
|
|
(8,165) |
|
|
(10,525) |
|
|
(17,885) |
|
|
(27,694) |
Cash operating costs (by-product
basis) |
|
$ |
21,157 |
|
$ |
23,500 |
|
$ |
41,498 |
|
$ |
36,763 |
Gold production (ounces) |
|
|
43,978 |
|
|
47,383 |
|
|
89,195 |
|
|
91,547 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
667 |
|
$ |
718 |
|
$ |
666 |
|
$ |
704 |
|
By-product basis |
|
$ |
481 |
|
$ |
496 |
|
$ |
465 |
|
$ |
402 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
deposit at Pinos Altos - Total Cash Costs per Ounce of Gold
Produced (iv)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
6,901 |
|
$ |
4,427 |
|
$ |
12,929 |
|
$ |
4,427 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
403 |
|
|
1,197 |
|
|
1,084 |
|
|
1,197 |
|
Non-cash reclamation provision |
|
|
(50) |
|
|
(37) |
|
|
(99) |
|
|
(37) |
|
Stripping costs(viii) |
|
|
- |
|
|
(332) |
|
|
- |
|
|
(332) |
Cash operating costs (co-product
basis) |
|
$ |
7,254 |
|
$ |
5,255 |
|
$ |
13,914 |
|
$ |
5,255 |
|
By-product metal revenues |
|
|
(376) |
|
|
(206) |
|
|
(710) |
|
|
(206) |
Cash operating costs (by-product
basis) |
|
$ |
6,878 |
|
$ |
5,049 |
|
$ |
13,204 |
|
$ |
5,049 |
Gold production (ounces) |
|
|
11,159 |
|
|
10,147 |
|
|
21,476 |
|
|
10,147 |
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
650 |
|
$ |
518 |
|
$ |
648 |
|
$ |
518 |
|
By-product basis |
|
$ |
616 |
|
$ |
498 |
|
$ |
615 |
|
$ |
498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine - Total Cash Costs
per Ounce of Gold Produced (v)(vi) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
7,335 |
|
$ |
- |
|
$ |
13,187 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vii) |
|
|
1,677 |
|
|
- |
|
|
817 |
|
|
- |
|
Non-cash reclamation provision |
|
|
(42) |
|
|
- |
|
|
(84) |
|
|
- |
Cash operating costs (co-product
basis) |
|
$ |
8,970 |
|
$ |
- |
|
$ |
13,920 |
|
$ |
- |
|
By-product metal revenues |
|
|
(830) |
|
|
- |
|
|
(1,429) |
|
|
|
Cash operating costs (by-product
basis) |
|
$ |
8,140 |
|
$ |
- |
|
$ |
12,491 |
|
$ |
- |
Gold production (ounces) |
|
|
17,809 |
|
|
- |
|
|
28,017 |
|
|
|
Total cash costs per ounce of gold
produced ($ per ounce)(vi): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Co-product basis |
|
$ |
504 |
|
$ |
- |
|
$ |
497 |
|
$ |
- |
|
By-product basis |
|
$ |
457 |
|
$ |
- |
|
$ |
446 |
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Costs
to Minesite Costs per Tonne(ix) by Mine |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine - Minesite Costs per
Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
45,340 |
|
$ |
60,624 |
|
$ |
94,927 |
|
$ |
118,527 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
2,666 |
|
|
(4,540) |
|
|
3,814 |
|
|
(4,106) |
|
Non-cash reclamation provision |
|
|
(584) |
|
|
(534) |
|
|
(1,161) |
|
|
(1,076) |
Minesite operating costs |
|
$ |
47,422 |
|
$ |
55,550 |
|
$ |
97,580 |
|
$ |
113,345 |
Minesite operating costs (thousands of
C$) |
|
C$ |
51,564 |
|
C$ |
57,334 |
|
C$ |
106,645 |
|
C$ |
115,754 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
564 |
|
|
559 |
|
|
1,121 |
|
|
1,153 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
91 |
|
C$ |
103 |
|
C$ |
95 |
|
C$ |
100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa Mine - Minesite Costs per
Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
14,643 |
|
$ |
18,094 |
|
$ |
30,096 |
|
$ |
34,704 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
1,340 |
|
|
(1,434) |
|
|
1,458 |
|
|
237 |
|
Non-cash reclamation provision |
|
|
(17) |
|
|
(17) |
|
|
(34) |
|
|
(34) |
Minesite operating costs |
|
$ |
15,966 |
|
$ |
16,643 |
|
$ |
31,520 |
|
$ |
34,907 |
Minesite operating costs (thousands of
C$) |
|
C$ |
17,382 |
|
C$ |
17,398 |
|
C$ |
34,508 |
|
C$ |
35,843 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
163 |
|
|
159 |
|
|
320 |
|
|
319 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
107 |
|
C$ |
110 |
|
C$ |
108 |
|
C$ |
112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine - Minesite Costs per
Tonne(i)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
15,028 |
|
$ |
- |
|
$ |
29,819 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
686 |
|
|
- |
|
|
(332) |
|
|
- |
|
Non-cash reclamation provision |
|
|
(3) |
|
|
- |
|
|
(6) |
|
|
- |
Minesite operating costs |
|
$ |
15,711 |
|
$ |
- |
|
$ |
29,481 |
|
$ |
- |
Minesite operating costs (thousands of
C$) |
|
C$ |
17,115 |
|
C$ |
- |
|
C$ |
32,283 |
|
C$ |
- |
Tonnes of ore milled (thousands of
tonnes) |
|
|
518 |
|
|
- |
|
|
1,003 |
|
|
- |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
33 |
|
C$ |
- |
|
C$ |
32 |
|
C$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Mine - Minesite Costs
per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
71,892 |
|
$ |
90,136 |
|
$ |
142,961 |
|
$ |
183,725 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
3,551 |
|
|
1,227 |
|
|
4,940 |
|
|
2,129 |
|
Non-cash reclamation provision |
|
|
(578) |
|
|
(387) |
|
|
(1,150) |
|
|
(780) |
|
Stripping costs(viii) |
|
|
(5,825) |
|
|
(6,921) |
|
|
(9,137) |
|
|
(13,045) |
Minesite operating costs |
|
$ |
69,040 |
|
$ |
84,055 |
|
$ |
137,614 |
|
$ |
172,029 |
Minesite operating costs (thousands of
C$) |
|
C$ |
74,896 |
|
C$ |
85,752 |
|
C$ |
149,792 |
|
C$ |
174,353 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
1,051 |
|
|
1,029 |
|
|
2,045 |
|
|
2,048 |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
71 |
|
C$ |
83 |
|
C$ |
73 |
|
C$ |
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine - Minesite
Costs per Tonne (ii)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
8,636 |
|
$ |
- |
|
$ |
8,636 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stripping costs(viii) |
|
|
(1,057) |
|
|
- |
|
|
(1,057) |
|
|
- |
Minesite operating costs |
|
$ |
7,579 |
|
$ |
- |
|
$ |
7,579 |
|
$ |
- |
Minesite operating costs (thousands of
C$) |
|
C$ |
8,160 |
|
C$ |
- |
|
C$ |
8,160 |
|
C$ |
- |
Tonnes of ore milled (thousands of
tonnes) |
|
|
398 |
|
|
- |
|
|
398 |
|
|
- |
Minesite costs per tonne
(C$)(ix) |
|
C$ |
21 |
|
C$ |
- |
|
C$ |
21 |
|
C$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine - Minesite Costs per
Tonne(iii)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
27,107 |
|
$ |
- |
|
$ |
56,532 |
|
$ |
27,182 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
415 |
|
|
- |
|
|
1,496 |
|
|
(294) |
|
Non-cash reclamation provision |
|
|
(182) |
|
|
- |
|
|
(148) |
|
|
(120) |
Minesite operating costs |
|
$ |
27,340 |
|
$ |
- |
|
$ |
57,880 |
|
$ |
26,768 |
Minesite operating costs (thousands of
€) |
|
€ |
20,163 |
|
€ |
- |
|
€ |
42,707 |
|
€ |
20,580 |
Tonnes of ore milled (thousands of
tonnes) |
|
|
248 |
|
|
- |
|
|
555 |
|
|
267 |
Minesite costs per tonne
(€)(ix) |
|
€ |
81 |
|
€ |
- |
|
€ |
77 |
|
€ |
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine - Minesite Costs
per Tonne(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
30,033 |
|
$ |
34,511 |
|
$ |
61,919 |
|
$ |
66,163 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
465 |
|
|
(103) |
|
|
(97) |
|
|
(506) |
|
Non-cash reclamation provision |
|
|
(93) |
|
|
(74) |
|
|
(186) |
|
|
(148) |
|
Stripping costs(viii) |
|
|
(1,531) |
|
|
(1,251) |
|
|
(3,261) |
|
|
(2,570) |
Minesite operating costs |
|
$ |
28,874 |
|
$ |
33,083 |
|
$ |
58,375 |
|
$ |
62,939 |
Tonnes of ore processed (thousands of
tonnes) |
|
|
655 |
|
|
665 |
|
|
1,279 |
|
|
1,391 |
Minesite costs per tonne
(US$)(ix) |
|
$ |
44 |
|
$ |
50 |
|
$ |
46 |
|
$ |
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota deposit at Pinos
Altos - Minesite Costs per Tonne(iv)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
6,901 |
|
$ |
4,427 |
|
$ |
12,929 |
|
$ |
4,427 |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
335 |
|
|
1,125 |
|
|
918 |
|
|
1,125 |
|
Non-cash reclamation provision |
|
|
(50) |
|
|
(37) |
|
|
(99) |
|
|
(37) |
|
Stripping costs(viii) |
|
|
- |
|
|
(332) |
|
|
- |
|
|
(332) |
Minesite operating costs |
|
$ |
7,186 |
|
$ |
5,183 |
|
$ |
13,748 |
|
$ |
5,183 |
Tonnes of ore processed (thousands of
tonnes) |
|
|
395 |
|
|
363 |
|
|
774 |
|
|
363 |
Minesite costs per tonne
(US$)(ix) |
|
$ |
18 |
|
$ |
14 |
|
$ |
18 |
|
$ |
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
La India Mine - Minesite Costs per
Tonne(v)(ix) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Three Months
Ended |
|
Six Months
Ended |
|
Six Months
Ended |
(thousands of United States
dollars, except as noted) |
|
June 30, 2014 |
|
June 30, 2013 |
|
June 30, 2014 |
|
June 30, 2013 |
Production costs |
|
$ |
7,335 |
|
$ |
- |
|
$ |
13,187 |
|
$ |
- |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustment* |
|
|
1,518 |
|
|
- |
|
|
579 |
|
|
- |
|
Non-cash reclamation provision |
|
|
(42) |
|
|
- |
|
|
(84) |
|
|
- |
Minesite operating costs |
|
$ |
8,811 |
|
$ |
- |
|
$ |
13,682 |
|
$ |
- |
Tonnes of ore processed (thousands of
tonnes) |
|
|
1,138 |
|
|
- |
|
|
1,825 |
|
|
- |
Minesite costs per tonne
(US$)(ix) |
|
$ |
8 |
|
$ |
- |
|
$ |
8 |
|
$ |
- |
|
|
Notes: |
|
|
|
(i) |
The Goldex mine's M and E Zones achieved commercial production
on October 1, 2013. |
|
|
(ii) |
Excludes $423 included in production costs per the
consolidated statements of income (loss) related to metals
purchased from Canadian Malartic General Partnership (CMGP) during
the period of June 16 - 30, 2014. Also excludes $11,668
related to the fair value adjustment of the inventory as calculated
in the purchase price allocation that is recognized in the loss on
equity investment line item of the consolidated statements of
income (loss). On June 16, 2014, Agnico Eagle and Yamana Gold
Inc. (''Yamana'') completed the joint acquisition of 100.0% of the
issued and outstanding common shares of Osisko Mining Corporation
(''Osisko'') by way of their previously announced court-approved
plan of arrangement (''the Arrangement''). Under the
Arrangement, Agnico Eagle and Yamana each own 50.0% of CMGP, which
now holds the Canadian Malartic mine and have formed a joint
committee to manage its operations. The information set out
in this table reflects the Company's 50.0% interest in the Canadian
Malartic mine.
|
|
|
(iii) |
Excludes the Kittila mine's results for the second quarter of
2013. Due to an extended maintenance shutdown, the Kittila mine
only operated for 14 days during the second quarter of 2013. The
Kittila mine incurred $18,159 in production costs during the second
quarter of 2013, which were excluded from the calculation of total
cash costs per ounce of gold produced and minesite costs per
tonne. |
|
|
(iv) |
Excludes the Creston Mascota deposit at Pinos Altos' results
for the first quarter of 2013 due to the temporary suspension of
active leaching between October 1, 2012 and March 13, 2013.
The Creston Mascota deposit at Pinos Altos incurred $3,117 in
production costs during the first quarter of 2013, which were
excluded from total cash costs per ounce of gold produced. |
|
|
(v) |
The La India mine achieved commercial production on February 1,
2014. 3,492 ounces of payable gold production were excluded from
the calculation of total cash costs per ounce of gold produced in
the first quarter of 2014 as they were produced prior to the
achievement of commercial production. |
|
|
(vi) |
Total cash costs per ounce of gold produced is not a recognized
measure under US GAAP and this data may not be comparable to data
presented by other gold producers. Total cash costs per ounce of
gold produced is presented on both a by-product basis (deducting
by-product metal revenues from production costs) and co-product
basis (before by-product metal revenues). Total cash costs per
ounce of gold produced on a by-product basis is calculated by
adjusting production costs as recorded in the consolidated
statements of income (loss) for by-product metal revenues, unsold
concentrate inventory production costs, non-cash reclamation
provisions, deferred stripping costs, smelting, refining and
marketing charges and other adjustments, and then dividing by the
number of ounces of gold produced. Total cash costs per ounce of
gold produced on a co-product basis is calculated in the same
manner as total cash costs per ounce of gold produced on a
by-product basis except that no adjustment for by-product metal
revenues is made. Accordingly, the calculation of total cash costs
per ounce of gold produced on a co-product basis does not reflect a
reduction in production costs or smelting, refining and marketing
charges associated with the production and sale of by-product
metals. The Company believes that these generally accepted
industry measures provide a realistic indication of operating
performance and provide useful comparison points between periods.
Total cash costs per ounce of gold produced is intended to provide
information about the cash generating capabilities of the Company's
mining operations. Management also uses these measures to monitor
the performance of the Company's mining operations. As market
prices for gold are quoted on a per ounce basis, using the total
cash costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash generating capabilities
at various gold prices. Management is aware that these per ounce
measures of performance can be affected by fluctuations in exchange
rates and, in the case of total cash costs of gold produced on a
by-product basis, by-product metal prices. Management compensates
for these inherent limitations by using this measure these measures
in conjunction with minesite costs per tonne (discussed below) as
well as other data prepared in accordance with US GAAP. Management
also performs sensitivity analyses in order to quantify the effects
of fluctuating metal prices and exchange rates. |
|
|
(vii) |
Under the Company's revenue recognition policy, revenue is
recognized on concentrates when legal title passes. As total cash
costs per ounce of gold produced are calculated on a production
basis, an inventory adjustment is made to reflect the sales margin
on the portion of concentrate production not yet recognized
as revenue. Other adjustments include the addition of
smelting, refining and marketing charges to production costs. |
|
|
(viii) |
The Company reports total cash costs per ounce of gold produced
and minesite costs per tonne using a common industry practice of
deferring certain stripping costs that can be attributed to future
production. The purpose of adjusting for these stripping costs is
to enhance the comparability of total cash costs per ounce of gold
produced and minesite costs per tonne to the Company's peers within
the mining industry. |
|
|
(ix) |
Minesite costs per tonne is not a recognized measure under US
GAAP and this data may not be comparable to data presented by other
gold producers. This measure is calculated by adjusting production
costs as shown in the consolidated statements of income (loss) for
unsold concentrate inventory production costs, non-cash reclamation
provisions, deferred stripping 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 impacted by fluctuations in
by-product metal prices and exchange rates, management believes
that the minesite costs per tonne measure provides additional
information regarding the performance of mining operations,
eliminating the impact of varying production levels. Management
also uses this measure to determine the economic viability of
mining blocks. As each mining block is evaluated based on the net
realizable value of each tonne mined, in order to be economically
viable the estimated revenue on a per tonne basis must be in excess
of the minesite costs per tonne. Management is aware that this per
tonne measure of performance can be impacted by fluctuations in
processing levels and compensates for this inherent limitation by
using this measure in conjunction with production costs prepared in
accordance with US GAAP. |
|
|
* |
This inventory adjustment reflects production costs associated
with unsold concentrates. |
SOURCE Agnico Eagle Mines Limited