(All amounts expressed in U.S. dollars unless
otherwise noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, Oct. 27, 2021 /PRNewswire/ - Agnico Eagle
Mines Limited (NYSE: AEM) (TSX:
AEM) ("Agnico Eagle" or the "Company") today reported
quarterly net income of $114.5
million, or net income of $0.47 per share, for the third quarter of
2021. This result includes non-cash mark-to-market losses on
warrants of $15.6 million
($0.06 per share), derivative losses
on financial instruments of $10.7
million ($0.05 per share),
foreign currency translation losses on deferred tax liabilities and
non-recurring tax adjustments of $8.8
million ($0.04 per share),
non-cash foreign currency translation gains of $6.5 million ($0.03 per share) and various other adjustment
losses of $2.3 million ($0.01 per share). Excluding these items
would result in adjusted net
income1 of $145.4 million or $0.60 per share for the third quarter of
2021. For the third quarter of 2020, the Company reported net
income of $222.7 million or net
income of $0.92 per share.
Included in the third quarter of 2021 net income, and not
adjusted above, is a non-cash stock option expense of $3.9 million ($0.02
per share).
In the first nine months of 2021, the Company reported net
income of $440.2 million, or net
income of $1.81 per share. This
compares with the first nine months of 2020, when net income was
$306.4 million, or net income of
$1.27 per share.
______________________
|
1 Adjusted net income is a non-GAAP
measure. For a discussion regarding the Company's use of
non-GAAP measures, please see "Note Regarding Certain Measures of
Performance".
|
The decrease in net income in the third quarter of 2021,
compared to the prior-year period, is primarily due to lower
operating margins2 (lower average
realized metal prices and higher production costs, partially offset
by higher sales volumes), unrealized losses for non-cash items
related to mark-to-market adjustments on financial instruments,
higher amortization of property, plant and mine development from
higher production volumes and the contribution of the Hope Bay mine
and higher exploration expenses, partially offset by foreign
exchange gains.
The increase in net income in the first nine months of 2021,
compared to the prior-year period, is primarily due to higher
operating margins (from higher sales volumes and higher average
realized metal prices), partially offset by unrealized losses for
non-cash items related to mark-to-market adjustments on financial
instruments owned by the Company, higher amortization of property,
plant and mine development from higher production volumes and the
contribution of the Hope Bay mine, higher exploration expenses and
higher income and mining taxes driven by higher operating
margins.
In the third quarter of 2021, cash provided by operating
activities was $291.0 million
($413.6 million before changes in
non-cash components of working capital), compared to the third
quarter of 2020 when cash provided by operating activities was
$462.5 million ($434.4 million before changes in non-cash
components of working capital).
In the first nine months of 2021, cash provided by operating
activities was $1,054.3 million
($1,261.0 million before changes in
non-cash components of working capital), compared to the first nine
months of 2020 when cash provided by operating activities was
$788.5 million ($824.3 million before changes in non-cash
components of working capital).
The decrease in cash provided by operating activities (before
changes in non-cash components of working capital) in the third
quarter of 2021, compared to the prior-year period, is primarily
due to a decrease in mine operating margins that resulted from the
reasons described above.
The increase in cash provided by operating activities in the
first nine months of 2021, compared to the prior-year period, is
primarily due to an increase in operating margins that resulted
from the reasons described above, partially offset by higher cash
taxes related to the higher mine operating margins and payments for
taxes related to the 2020 tax year in the first quarter of
2021.
______________________
|
2 Operating margin is a non-GAAP
measure. For a discussion regarding the Company's use of
non-GAAP measures, please see "Note Regarding Certain Measures of
Performance".
|
"Another strong quarterly operating performance, including
record gold production, continues to demonstrate our ability to
optimize our assets and steadily grow output over the next several
years. During the quarter, the Abitibi and Meliadine mines
continued to be key drivers to the Company's ongoing operational
success," said Sean Boyd, Agnico
Eagle's Chief Executive Officer. "These strong production
platforms will be integral components in the proposed merger of
equals with Kirkland Lake Gold,
which was announced late in the quarter. The combination is
expected to unlock additional value through the realization of
significant operational synergies while creating a low risk global
gold mining leader with growing production and gold reserves,
increased operating cash flow and the financial resources and
long-life assets to maintain a high-quality sustainable business
while increasing capital distributions to shareholders," added Mr.
Boyd.
Third quarter of 2021 highlights include:
- Record quarterly gold production –
Payable gold production3 was 523,706
ounces (excluding 17,957 ounces of payable gold production at Hope
Bay and including pre-commercial gold production of 6,881 ounces at
the Tiriganiaq open pit at Meliadine) at production costs per ounce
of $832, total cash costs per
ounce4 of $765 and all-in sustaining costs ("AISC") per
ounce5 of $1,011. Including Hope Bay, payable gold
production in the third quarter of 2021 was new record of 541,663
ounces at production costs per ounce of $845, total cash costs per ounce of $784 and AISC per ounce of $1,059. Production costs per ounce, total cash
costs per ounce and AISC per ounce exclude the pre-commercial
production of gold at Tiriganiaq
- Abitibi and Meliadine mines drive solid operating
performance – In the third quarter of 2021,
the LaRonde Complex, Goldex and Canadian Malartic mines (50%) in
the Abitibi region of Quebec
collectively produced 222,373 ounces of gold at production costs
per ounce of $716 and total cash
costs per ounce of $594. In
Nunavut, the Meliadine mine had a record quarter producing 97,024
ounces of gold (including pre-commercial gold production of 6,881
ounces) at production costs per ounce of $585 and total cash costs per ounce of
$634. In the third quarter of
2021, these four mines collectively represent approximately 59% and
68% of the Company's gold production and operating margin,
respectively. Each of these operations have mine lives in
excess of 10 years, and exploration efforts are ongoing to further
expand their known mineral reserves and mineral resources
- Production, cost and capital expenditure guidance confirmed
for 2021 – Expected gold production in 2021
is unchanged at approximately 2,047,500 ounces, while total cash
costs per ounce and AISC per ounce continue to be forecast in the
range of $700 to $750 and $950 to
$1,000, respectively. Estimated
payable gold production and costs for 2021 exclude any contribution
from Hope Bay. In 2021, gold production at the La India and
Meadowbank mines is expected to be below forecast due to a variety
of operational challenges. Any shortfall in production at these
operations is expected to be offset by stronger than expected
performance at the Meliadine and LaRonde mines. Total capital
expenditures guidance for 2021 remains unchanged at approximately
$803.0 million
- Proposed merger of equals with Kirkland Lake Gold announced on September 28, 2021 – The
transaction will create a best-in-class gold mining company
operating in one of the world's leading gold regions, the
Abitibi-Greenstone Belt of northeastern Ontario and northwestern Quebec, with superior financial and operating
metrics. Canadian Competition Act approval was received on
October 4, 2021. The Information
Circular is expected to be mailed on November 3, 2021, and the shareholder votes for
both companies are scheduled for November
26, 2021. The transaction is expected to be completed in
December 2021 or the first quarter of
2022
- Development and exploration activities progressing on
schedule and on budget at the Odyssey Underground Project
– Underground activities are focused on
extending the main ramp and developing the first production levels
and an exploration drift at Odyssey South. Construction of the
concrete headframe began in late September and is expected to be
completed in October. Shaft sinking is scheduled to begin in
October 2022. All surface
construction activities and the purchase of long lead items remain
on target. Underground exploration began at the Odyssey South and
Internal Zones in July and a second drill will be added in the
fourth quarter of 2021. At East Gouldie, 12 surface drills are
currently active (see results below)
________________
|
"Reconciliation of
Non-GAAP Financial Performance Measures" below. See also
"Note Regarding Certain Measures of Performance".
|
- Drilling continues to yield positive results in the third
quarter of 2021 – The Company's exploration
focus remains on pipeline projects and near mine opportunities.
Detailed exploration results are expected to be reported in a news
release on November 2, 2021. Recent
exploration highlights include:
-
- LaRonde – Drilling the extensions of
the recently discovered 20N Zinc South Zone, near the East, mine
has returned intercepts of 9.3 grams per tonne ("g/t") gold, 114
g/t silver, 0.9% copper and 2.6% zinc over 4.6 metres at 3,464
metres depth, and 0.5 g/t gold, 41 g/t silver and 11.9% zinc over
2.8 metres at 3,126 metres depth
- Meliadine – Delineation drilling in
the Tiriganiaq deposit at the Meliadine Mine intersected 20.3 g/t
gold (capped at 50 g/t gold) over 27.4 metres in an interlode area
at a depth of 380 metres. At the Tiriganiq deposit gold production
has been exceeding expectations and the higher-than-expected grade
in some infill drilling further confirms that grade estimation
appears to be conservative in some portions of the deposit
- Amaruq – Drilling has focused on
finding extensions to the known mineralized zones. In the Mammoth
area, approximately 600 metres to the west of the Whale Tail pit,
drilling has encountered significant intercepts such as 4.7 g/t
gold over 18.8 metres at 254 metres depth and 5.1 g/t gold over 4.7
metres at 179 metres depth. Additional holes are planned to
test for extensions to these zones
- Odyssey Project – Infill drilling
continues to return wide, high-grade intersections in the core of
the East Gouldie deposit, with recent results including 6.8 g/t
gold over 41.4 metres at 1,069 metres depth, including 10.4 g/t
gold over 20.6 metres at 1,064 metres depth. The East Gouldie
extension continues to be tested, with the easternmost hole drilled
to date returning 6.3 g/t gold over 4.8 metres at 1,989 metres
depth on the adjacent Rand Malartic property, 1.5 kilometres east
of the current mineral resource, further demonstrating the
excellent exploration upside for new discoveries in the vicinity of
the Odyssey Project
- Upper Beaver Project – The conversion
and expansion drilling program continues to intersect significant
high-grade mineralization, further expanding the Footwall and East
Porphyry zones at depth. The new results include an intercept of
8.7 g/t gold and 0.81% copper over 18.2 metres at 1,435 metres
depth
- A quarterly dividend of $0.35
per share has been declared
______________________
|
3 Payable production of a mineral
means the quantity of a mineral produced during a period contained
in products that have been or will be sold by the Company whether
such products are shipped during the period or held as inventory at
the end of the period.
|
4 Total cash costs per ounce is a
non-GAAP measure and, unless otherwise specified, is reported on a
by-product basis. For a reconciliation to production costs
and for total cash costs on a co-product basis, see "Reconciliation
of Non-GAAP Financial Performance Measures" below. See also
"Note Regarding Certain Measures of Performance".
|
5 AISC per ounce is a non-GAAP
measure and, unless otherwise specified, is reported on a
by-product basis. For a reconciliation to production costs
and for all-in sustaining costs on a co-product basis, see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance".
|
Third Quarter 2021 Financial and Production
Highlights
In the third quarter of 2021, the Company's payable gold
production was 523,706 ounces (excluding 17,957 ounces of payable
gold production at Hope Bay, and including 6,881 ounces of
pre-commercial production of gold at the Tiriganiaq open pit at
Meliadine). This compares to quarterly payable gold
production of 492,693 ounces in the prior-year period (which
included 13,305 ounces of pre-commercial production of gold at the
Barnat deposit at Canadian Malartic and 1,982 ounces of
pre-commercial gold production at the Tiriganiaq open pit at
Meliadine). Including the Hope Bay mine, the Company's
quarterly gold production was a record of 541,663 ounces in the
third quarter of 2021.
In the first nine months of 2021, the Company's payable gold
production was 1,528,949 ounces (excluding 55,524 ounces of payable
gold production at Hope Bay, and including 24,057 ounces and 348
ounces of pre-commercial production of gold at the Tiriganiaq open
pit at Meliadine and Amaruq underground project,
respectively). This compares to payable gold production of
1,235,123 ounces in the prior-year period (which included 18,930
ounces of pre-commercial production of gold at the Barnat deposit
at Canadian Malartic and 1,982 ounces of pre-commercial gold
production at the Tiriganiaq open pit at Meliadine).
Including the Hope Bay mine, the Company's payable gold production
was also a record of 1,584,473 ounces for the first nine months of
2021.
The higher gold production in the third quarter of 2021, when
compared to the prior-year period, was primarily due to strong
performance at the Company's mines, including higher gold grades
and tonnage at the Meadowbank Complex, higher tonnage at the
Meliadine, Canadian Malartic and Kittila mines, and higher gold
grades at the LaRonde Complex. This was partially offset by
lower production at La India related to lower ore tonnage stacked
due to high clay content and at Creston Mascota where only residual
leaching remains.
The higher gold production in the first nine months of 2021,
when compared to the prior-year period, was primarily due to strong
performance at the Company's mines, including higher gold grades
and tonnage at the LaRonde and Meadowbank Complexes and the
Canadian Malartic and Meliadine mines. This was partially
offset by lower production at the La India mine related mostly to
water conservation efforts and at Creston Mascota, where only
residual leaching remains. In the first nine months of 2020, gold
production was negatively affected by COVID-19 related reductions
in mining activities which affected seven of the Company's then
eight operations. A detailed description of the production at
each mine is set out below.
Production costs per ounce in the third quarter of 2021 were
$832 (excluding the Hope Bay mine),
compared to $865 in the prior-year
period. Total cash costs per ounce in the third quarter of
2021 were $765 (excluding the Hope
Bay mine), compared to $764 in the
prior-year period. Including the Hope Bay mine, production
costs per ounce were $845 and total
cash costs per ounce were $784 in the
third quarter of 2021.
Production costs per ounce in the first nine months of 2021 were
$816 (excluding the Hope Bay mine),
compared to $864 in the prior-year
period. Total cash costs per ounce in the first nine months
of 2021 were $745 (excluding the Hope
Bay mine), compared to $805 in the
prior-year period. Including the Hope Bay mine, production
costs per ounce were $828 and total
cash costs per ounce were $755 in the
first nine months of 2021.
In the third quarter and first nine months of 2021, production
costs per ounce decreased when compared to the prior-year periods
primarily due to higher gold production, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar.
For the first nine months of 2021, total cash costs per ounce
(excluding the Hope Bay mine) decreased when compared to the
prior-year periods primarily due to higher gold production, higher
by-product revenues from higher realized metal prices and higher
sales volumes, partially offset by the strengthening of the
Canadian dollar against the U.S. dollar. Total cash costs per
ounce (excluding the Hope Bay mine) in the third quarter of 2021
were essentially the same when compared to the prior year
period.
AISC per ounce in the third quarter of 2021 were $1,011 (excluding the Hope Bay mine), compared to
$1,016 in the prior-year
period. Including the Hope Bay mine, AISC per ounce were
$1,059 in the third quarter of
2021. AISC per ounce in the first nine months of 2021 were
$1,010 (excluding the Hope Bay mine),
compared to $1,078 in the prior-year
period. Including the Hope Bay mine, AISC per ounce were
$1,035 in the first nine months of
2021.
AISC per ounce (excluding the Hope Bay mine) in the third
quarter of 2021 decreased when compared to the prior-year period
primarily due to lower total cash costs per ounce and lower
sustaining capital expenditures primarily at the Meadowbank
Complex. AISC per ounce (excluding the Hope Bay mine) in the
first nine months of 2021 decreased when compared to the prior-year
period primarily due to lower total cash costs per ounce, partially
offset by higher sustaining capital expenditures at the Canadian
Malartic and Goldex mines related to the temporary suspension of
activities due to COVID-19 in the prior-year periods.
Cash Position – Strong Financial Flexibility
Cash and cash equivalents and short-term investments decreased
to $243.6 million at
September 30, 2021, from the June 30, 2021 balance of
$280.9 million, primarily due to the
increase of working capital (mainly supplies and fuel inventory)
for the Company's Nunavut
operations during the 2021 sealift season. The Company also
accelerated the purchase of certain reagents and consumables in
order to help offset inflationary trends. As of September 30, 2021, the outstanding balance on
the Company's unsecured revolving bank credit facility was nil, and
available liquidity under this facility was approximately
$1.2 billion, not including the
uncommitted $300 million accordion
feature.
Approximately 54% of the Company's remaining 2021 estimated
Canadian dollar exposure is hedged at an average floor price above
1.27 C$/US$. Approximately 48%
of the Company's remaining 2021 estimated Mexican peso exposure is
hedged at an average floor price above 20.75
MXP/US$. Approximately 10% of the Company's remaining
2021 estimated Euro exposure is hedged at an average floor price of
approximately 1.23 US$/EUR. The
Company's full year 2021 cost guidance is based on assumed exchange
rates of 1.30 C$/US$, 20.00 MXP/US$ and 1.20
US$/EUR.
During the third quarter of 2021, the Company completed the
purchase of diesel relating to its Nunavut operations for the balance of 2021 to
mid-year of 2022. The diesel was delivered to the
Nunavut sites on the 2021
sealifts. The purchase price, including the impact of fuel
hedges, was in line with the 2021 cost guidance
assumptions.
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs.
Capital Expenditures
Total capital expenditures (including sustaining capital) in the
third quarter of 2021 were $223.3
million (excluding Hope Bay). Including Hope Bay, the
total capital expenditures in third quarter of 2021 were
$246.4 million. The total
capital expenditures (including sustaining capital) in 2021 remain
forecast to be approximately $803.0
million, excluding the Hope Bay mine.
The following table sets out capital expenditures (including
sustaining capital) in the third quarter of 2021 and the first nine
months of 2021.
Capital
Expenditures
|
|
|
|
(In thousands of
U.S. dollars)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2021
|
|
September 30,
2021
|
Sustaining
Capital
|
|
|
|
LaRonde
Complex
|
$
|
26,224
|
|
|
$
|
75,755
|
|
Canadian Malartic
mine
|
13,458
|
|
|
53,771
|
|
Meadowbank
Complex
|
11,901
|
|
|
37,188
|
|
Meliadine
mine
|
13,679
|
|
|
36,774
|
|
Kittila mine
|
9,564
|
|
|
27,488
|
|
Goldex mine
|
6,844
|
|
|
23,228
|
|
Pinos Altos
mine
|
5,827
|
|
|
13,821
|
|
La India
mine
|
2,675
|
|
|
5,880
|
|
Total Sustaining
Capital
|
$
|
90,172
|
|
|
$
|
273,905
|
|
|
|
|
|
Development
Capital
|
|
|
|
LaRonde
Complex
|
$
|
16,795
|
|
|
$
|
39,284
|
|
Canadian Malartic
mine
|
14,355
|
|
|
33,406
|
|
Meadowbank
Complex
|
205
|
|
|
8,711
|
|
Amaruq underground
project
|
40,516
|
|
|
76,590
|
|
Meliadine
mine
|
24,761
|
|
|
53,970
|
|
Kittila mine
|
20,320
|
|
|
55,903
|
|
Goldex mine
|
5,419
|
|
|
13,912
|
|
Pinos Altos
mine
|
7,238
|
|
|
15,155
|
|
La India
mine
|
2,519
|
|
|
6,164
|
|
Other
|
1,023
|
|
|
10,490
|
|
Total Development
Capital
|
$
|
133,151
|
|
|
$
|
313,585
|
|
Total Capital
Expenditures - excluding Hope Bay
|
$
|
223,323
|
|
|
$
|
587,490
|
|
|
|
|
|
Hope Bay mine
Sustaining Capital
|
$
|
18,316
|
|
|
$
|
34,713
|
|
Hope Bay mine
Development Capital
|
4,736
|
|
|
7,498
|
|
Total Capital
Expenditures - including Hope Bay
|
$
|
246,375
|
|
|
$
|
629,701
|
|
2021 Production and Cost Guidance Unchanged
Production guidance for 2021 remains unchanged at approximately
2,047,500 ounces of gold (including approximately 24,057 ounces and
2,100 ounces of pre-commercial gold production from the Tiriganiaq
open pit at Meliadine and Amaruq underground project,
respectively). Commercial production at the Tiriganiaq open
pit was declared on August 15,
2021. Estimated payable gold production and costs for 2021
exclude any contribution from Hope Bay. In 2021, gold
production at the La India and Meadowbank mines is expected to be
below forecast due to a variety of operational challenges.
Any shortfall in production at these operations is expected to be
offset by stronger than expected performance at the Meliadine and
LaRonde mines.
The Company anticipates that total cash costs per ounce and AISC
per ounce for 2021 will continue to be in the range of $700 to $750 and
$950 to $1,000, respectively. Estimated payable
gold production and costs for 2021 exclude any contribution from
Hope Bay.
Cost Inflation Update
In the second quarter of 2021, the Company noted that, given
rising prices for many commodities and disruptions to global
supply-chains, the resulting cost pressures were gradually being
pushed downstream and were starting to be reflected in the prices
for a number of goods and services used by the Company. Since then,
these inflationary pressures have accelerated (e.g., diesel prices
have increased by approximately 20% since August 1, 2021), and while the company continues
to implement numerous initiatives to offset this, we anticipate
upward cost pressure throughout the industry, including at the
Company's operations.
While difficult to predict, the Company expects that these price
pressures will extend into 2022, depending on when inflation
conditions and global supply-chains normalize. As a result,
the Company currently expects to see an approximate 5% to 7%
increase in reagents and consumables prices in 2022, and a related
impact on production costs next year. Given the uncertain nature of
the inflationary pressures, the Company will continue to actively
monitor and identify opportunities to manage and mitigate input
cost increases.
Although there are signs of tightness in certain labour
categories, at this time the Company does not anticipate any
abnormal impact on projected costs as a result of wage inflation or
workforce costs in 2022, other than certain high demand contracting
(including related to exploration). The Company's strategy to
contain the risk of workforce cost increases includes initiatives
such as implementing organizational workforce cost management
projects to improve productivity, as well as career development
plans to fill specific technical roles with internal candidates
where possible. In the Abitibi, given the increased labour
market competition, the Company is looking to convert certain
contractor groups into permanent employees to reduce
turnover.
Demonstrating strong ESG performance
In March 2020, the Company decided
to send the Nunavut-based
workforce home and isolate its mines from the local communities
while continuing to pay 75% of base salary to these
employees. A gradual return of the Nunavut-based workforce began at the end of
June 2021 after the reintegration
plan was approved by the Chief Public Health Officer of
Nunavut. Reintegration of the Nunavummiut workforce at
Meliadine and the Meadowbank Complex was completed in October 2021.
During the third quarter of 2021, Agnico Eagle's outstanding ESG
practices and contributions to the local communities continued to
be recognized by several organizations. The following awards
were received by the Company's operations during the third quarter
of 2021:
- LaRonde – "Resilience" award at the 2021 gala of the Central
Abitibi Chamber of Commerce and Industry for the management of the
COVID-19 pandemic
- Canadian Malartic – "Economic Development Contribution" award
at the 41st Gala of the Chamber of Commerce of Val-d'Or, which confirms that Canadian
Malartic is a leading local and regional economic driver
- Creston Mascota – "Silver Helmet" award by the Mexican Chamber
of Mines as the 2020 safest mine in Mexico
- La India – Distinction of
Socially Responsible Company (ESR® 2021) for the sixth consecutive
year and the 2021 "Ethics and Values" award by the Confederation of
Industrial Chambers of Mexico
(CONCAMIN) in recognition of the developed policies and ongoing
progress relating to corporate social responsibility and
sustainable development
Agnico Eagle has committed to support the recommendations of the
Task Force on Climate Related Financial Disclosures ("TCFD").
The recommendations provide a useful framework to increase
transparency on climate-related risks and opportunities. In
2020, the Company began aligning disclosures with TCFD. In
addition, in 2021, the Company committed to Net-Zero Carbon by
2050, reported initial Scope 3 emissions, adopted a governance
structure for managing climate change and commenced climate
specific risk and opportunity assessments. Agnico Eagle is
committed to continuing to implement the TCFD recommendations.
In the third quarter of 2021, the Company had an increase in
positive cases of COVID-19 in Mexico and in Nunavut, while the Company's other operating
regions remained at levels similar to the second quarter of 2021
(263 total positive cases in the third quarter of 2021, compared to
115 total positive cases in the second quarter of 2021). The
Company remains engaged in managing risks related to COVID-19 and
continues to apply the measures implemented to help protect the
health and safety of its employees and the communities in which it
operates.
In Mexico, positive cases
increased during the third quarter of 2021, when compared to the
second quarter of 2021, due the growing number of cases in the
surrounding communities at Pinos Altos. To mitigate the
further spread of COVID-19, the Company continues to promote and
support the vaccination campaign by the health authorities in
Mexico. By the end of the third quarter of 2021, 92% of the
total employees at Pinos Altos
have had at least one dose and 61% of employees have been fully
vaccinated.
The increase in positive cases in Nunavut was a result of a significant COVID-19
outbreak at the Hope Bay Project at the end of September. Due
to this recent outbreak, and the fact that COVID-19 cases are
continuing to increase in Alberta,
the main hub for the Hope Bay Project, the Company decided to idle
its operations at the Hope Bay Project. This was done in an
orderly fashion while ensuring the safety of employees and the
sustainability of Agnico Eagle's infrastructure. Since
Nunavummiut workers have not yet returned to the Hope Bay Project,
no Nunavummiut were in contact with the positive cases or close
contacts. The Company believes the risk of contamination for
the surrounding communities and for other Nunavut mines remains very low. The
no-contact protocol between the mine site and the communities is
still in effect and remains a priority in order to continue
protecting the communities. An operational update on the
Hope Bay project is set out below.
The table below sets out additional information on COVID-19
cases identified in the third quarter of 2021; a significant
majority of which were detected by the Company's screening and
testing protocols.
Region
|
Total Positive
Cases
|
Detected
Offsite
|
Detected by
the
Company's
Protocols
|
Recovered
Cases*
|
Finland
|
2
|
2
|
—
|
2
|
Nunavut
|
46
|
15
|
31
|
32
|
Abitibi
|
8
|
—
|
8
|
8
|
Mexico
|
186
|
4
|
182
|
184
|
Exploration
|
21
|
6
|
15
|
21
|
Toronto
|
—
|
—
|
—
|
—
|
Sub-Total
|
263
|
27
|
236
|
247
|
*Recovered cases in
the third quarter of 2021 include employees that were positive and
had not yet recovered at the end of the second quarter of
2021.
|
Agnico Eagle and Kirkland Lake Gold Merger of Equals
On September 28, 2021, Agnico
Eagle and Kirkland Lake Gold Ltd. (TSX:KL, NYSE:KL, ASX:KLA)
("Kirkland Lake Gold") announced that they entered into an
agreement (the "Merger Agreement") pursuant to which Agnico Eagle
will acquire all of the common shares of Kirkland Lake Gold in a merger of equals (the
"Merger"), with the combined company to continue under the name
"Agnico Eagle Mines Limited".
The Merger will establish the new Agnico Eagle as a high-quality
senior producer with the lowest all-in sustaining costs, highest
EBITDA margin6 and lowest-risk
portfolio7 of operating mines among
its Senior Gold Peers8, together with industry-leading
best practices in key areas of ESG.
Pursuant to the Merger Agreement, Kirkland Lake Gold shareholders will receive
0.7935 of an Agnico Eagle common share for each Kirkland Lake Gold common share held. Upon
closing, existing Agnico Eagle and Kirkland
Lake Gold shareholders will own approximately 54% and 46% of
the combined company, respectively.
Canadian Competition Act approval was received on October 4, 2021. Additionally, Agnico Eagle
and Kirkland Lake Gold have received
relief from the Australian Securities and Investments Commission
from compliance with the prospectus and secondary sale requirements
of Part 6D.2 and Part 6D.3 of the Australian Corporations Act.
The joint management information circular is expected to be
mailed on November 3, 2021 and
meetings of Agnico Eagle shareholders and Kirkland Lake Gold shareholders have each been
scheduled for November 26,
2021. The Merger is expected to close in December 2021 or in the first quarter of 2022,
subject to satisfaction of the conditions under the Merger
Agreement. For additional details on the Merger, see Agnico
Eagle's and Kirkland Lake Gold's
joint news release dated September 28,
2021 and Agnico Eagle's material change report filed on
SEDAR.
Unless otherwise stated in this News Release, the forward
looking information contained herein, including forward looking
information regarding the Company's production and costs does not
include the effect of the Merger with Kirkland Lake Gold.
_____________________
|
6 Lowest all-in sustaining cost and
highest EBITDA margin are non-GAAP financial performance measures
and are based on data from Bloomberg, equity research reports or
public disclosure of the Senior Gold Peers. These measures have no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other companies. Financial
comparisons between new Agnico Eagle and its Senior Gold Peers are
made on the basis of the data presented by Bloomberg, equity
research reports or public disclosure which may not be calculated
in the same manner as Agnico calculates comparable
measures.
|
7 Lowest-risk portfolio is an
assessment of risk based data from The Fraser Institute's "Survey
of Mining Companies 2020" (the "Fraser Report") and historical
production data for calendar year 2020 included in the public
disclosure of the Senior Gold Peers. The risk assessment is
determined for the new Agnico Eagle and each Senior Gold Peer by
using the Fraser Report scores for mining jurisdictions across the
world and weighting such scores based on each entity's 2020
production in each applicable jurisdiction.
|
8 "Senior Gold Peers" means Barrick
Gold Corporation, Kinross Gold Corporation, Newcrest Mining Limited
and Newmont Corporation
|
Dividend Record and Payment Dates for the Fourth Quarter of
2021
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.35 per common share,
payable on December 15, 2021 to
shareholders of record as of December
1, 2021. Agnico Eagle has declared a cash dividend
every year since 1983.
Expected Dividend Record and Payment Dates for the 2021
Fiscal Year
Record
Date
|
Payment
Date
|
December 1,
2021*
|
December 15,
2021*
|
Dividend Reinvestment Plan
Please see the following link for information on the Company's
dividend reinvestment plan: Dividend
Reinvestment Plan
Third Quarter 2021 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call
on Thursday, October 28,
2021 at 11:00 AM (E.D.T.) to
discuss the Company's third quarter financial and operating
results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's
website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
416-764-8659 or toll-free 1-888-664-6392. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 416-764-8677 or toll-free 1-888-390-0541, access
code 57168607. The conference call replay will expire on
November 28, 2021.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and
LaRonde Zone 5 ("LZ5") mines) and the Goldex mine and a 50%
interest in the Canadian Malartic mine. These mines are
located within 50 kilometres of each other, which provides
operating synergies and allows for the sharing of technical
expertise.
LaRonde Complex – Higher Grades Drive Strong Operational
Performance; New Quarterly Tonnage Record Set at LZ5; Drilling
Continues to Expand 20N South Zinc Zone at Depth
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988. The LZ5 property lies adjacent to and west of the
LaRonde mine and previous operators exploited the zone by open pit
mining. The LZ5 mine achieved commercial production in
June 2018.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
737
|
|
769
|
Tonnes of ore milled
per day
|
8,011
|
|
8,359
|
Gold grade
(g/t)
|
4.71
|
|
4.27
|
Gold production
(ounces)
|
106,747
|
|
100,180
|
Production costs per
tonne (C$)
|
$
|
126
|
|
$
|
137
|
Minesite costs per
tonne (C$)
|
$
|
108
|
|
$
|
99
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
691
|
|
$
|
775
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
458
|
|
$
|
476
|
Gold production in the third quarter of 2021 increased when
compared to the prior-year period primarily as a result of higher
gold grades, partially offset by lower throughput levels. A
higher proportion of the ore milled was sourced from the West mine
leading to higher gold grades in the quarter. Throughput
levels were affected by delays in the mining sequence primarily
related to issues with the pastefill network.
Production costs per tonne in the third quarter of 2021
decreased when compared to the prior-year period primarily as a
result of the timing of unsold concentrate inventory, partially
offset by lower throughput levels. Production costs per ounce
in the third quarter of 2021 decreased when compared to the
prior-year period primarily as a result of higher gold grades and
lower production costs per tonne, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne9 in the
third quarter of 2021 increased when compared to the prior-year
period primarily due to lower throughput levels. Total cash
costs per ounce in the third quarter of 2021 decreased when
compared to the prior-year period primarily as a result of higher
gold grades and higher by-product revenues due to higher average
realized by-product metal prices, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar and
higher minesite costs per tonne.
_____________________
|
9 Minesite costs per tonne is a
non-GAAP measure. For a reconciliation of this measure to
production costs as reported in the financial statements, see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance" below.
|
LaRonde Complex –
Operating Statistics
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
2,222
|
|
1,935
|
Tonnes of ore milled
per day
|
8,139
|
|
7,062
|
Gold grade
(g/t)
|
4.38
|
|
4.13
|
Gold production
(ounces)
|
297,348
|
|
244,184
|
Production costs per
tonne (C$)
|
$
|
119
|
|
$
|
111
|
Minesite costs per
tonne (C$)
|
$
|
110
|
|
$
|
104
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
712
|
|
$
|
658
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
499
|
|
$
|
552
|
Gold production in the first nine months of 2021 increased when
compared to the prior-year period primarily as a result of higher
throughput and higher gold grades. In the first nine months
of 2021, the LaRonde Complex operated at or above planned levels
and milled a higher proportion of higher grade ore from the West
mine area. In the prior-year period, access to the West mine
area was delayed in the first quarter as additional ground support
was being completed and the operations were suspended from
March 23, 2020 to April 29, 2020 as ordered by the Government of
Quebec in response to COVID-19
(the "Quebec Order").
Production costs per tonne in the first nine months of 2021
increased when compared to the prior-year period primarily due to
the timing of unsold concentrate inventory, higher development
activity and higher underground maintenance costs. Production
costs per ounce in the first nine months of 2021 increased when
compared to the prior-year period due to the reasons described
above and the strengthening of the Canadian dollar against the U.S.
dollar, partially offset by higher gold grades.
Minesite costs per tonne in the first nine months of 2021
increased when compared to the prior-year period primarily due to
higher development activity and higher underground maintenance
costs. Total cash costs per ounce in the first nine months of
2021 decreased when compared to the prior-year period due to higher
gold grades and higher by-product revenues due to higher average
realized by-product metal prices, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar and
higher minesite costs per tonne.
Operational Highlights
- The LaRonde Complex had another strong quarter with higher than
anticipated production at 106,747 ounces of gold primarily due to
higher gold grades. Ore production was affected by a delay in the
mining sequence related to a blockage in the pastefill network,
equipment availability and issues with the 194 booster fan limiting
access to some levels in the LaRonde mine. The shortfall in
production from the East mine area was partially offset by
increased production from the West mine area and record quarterly
production from the LZ5 mine
- The LZ5 mine set a second consecutive quarterly record with a
mining rate averaging approximately 3,290 tonnes per day ("tpd"),
above the targeted mining rate of 3,020 tpd. The continuous
improvement in mining rate demonstrates the realized upside
potential from automated equipment. The Company is targeting to
maintain this mining rate in the fourth quarter of 2021
- In the third quarter of 2021, the mining rate in the West mine
area averaged 1,280 tpd compared to a target of 1,250 tpd, which
resulted in over 31% of the gold produced by the LaRonde Complex
being sourced from the West mine. In the fourth quarter of 2021,
approximately 25-27% of the gold is expected to be sourced from the
West mine area
- Production from automated equipment continued to track well
above target both at LaRonde and LZ5. At the LaRonde mine, 26% of
the production mucking was done in automated mode with operators
based on surface. At the LZ5 mine, 16% of the production mucking
and hauling was done in automated mode with operators based on
surface
- In the fourth quarter of 2021, booster fan 194 at the LaRonde
mine will be stopped for two weeks for scheduled maintenance.
During that period, development activities will be reduced while
production activities will be maintained at normal operating
levels. Also in the fourth quarter of 2021, maintenance will be
carried out at the mill over a 30-day period to repair and improve
the 5,000 tonne ore silo. During this period, the mill is expected
to operate as planned and will be fed using a buggy bin
- As part of ongoing stakeholder engagement, the Company is in
advanced discussions with First Nations groups concerning a
collaboration agreement with respect to operations at the LaRonde
Complex and the agreement is expected to be finalized in
November 2021
Project Highlights
- At Zone LR11-3 (which is at the past producing Bousquet 2
mine), the dewatering of the old workings continued according
to plan in the third quarter of 2021 and is expected to be
completed in the first half of 2022. The development access from
level 146 of the LaRonde mine towards Zone LR11-3 advanced by 434
metres and reached the main ramp. Production activities in Zone
LR11-3 are expected to begin in late 2022
- The construction of the drystack tailings facilities is
progressing on schedule. The overall engineering level is now 96%
complete. The thickener construction is completed. The filtration
plant building and north cell pumping station foundations are under
construction. The drystack tailings facility is expected to be
operational by the end of 2022
Exploration
- The Company expects to spend $14.1
million in 2021 to drill 39,800 metres and also to develop,
extend or rehabilitate three exploration drifts (track drifts 9.0
and 215 and exploration drift 291 west) from the LaRonde 3
infrastructure towards the west below the LZ5 mine workings. During
the third quarter of 2021, the Company delivered the third drill
station on track drift 9.0 and initial exploration drilling started
from the first drill station. The enlargement of track drift 215
progressed by 394 metres and the exploration drift 291 west
advanced by 102 metres
- Exploration is focused on extensions to LZ5, Zone 6, Zone 20N,
and mineralization at the past producing Bousquet mine, as well as
extensions to the recently discovered 20N Zinc South Zone located
below 3,100 metes depth near the East mine
- Highlights from recent exploration drilling in the 20N Zinc
South Zone include: hole LR317-04, which returned 9.3 g/t gold,
113.7 g/t silver, 0.9% copper and 2.6% zinc over 4.6 metres at
3,464 metres depth approximately 80 metres beneath the mineral
resource defined at the end of 2020, and hole LR284-01, which
returned 0.5 g/t gold, 41.4 g/t silver and 11.9% zinc over 2.8
metres at 3,126 metres depth approximately 80 metres east of the
mineral resource
Exploration results for the LaRonde Complex are expected to be
reported in a Company News Release on November 2, 2021.
Canadian Malartic – New Quarterly Record for Tonnage Mined
and Tonnage Milled; Odyssey Development Project on Schedule and
Budget; East Gouldie Drilling Continues to Infill and Expand
Mineralization
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation (now
Canadian Malartic Corporation) and
created Canadian Malartic GP (the
"Partnership"). The Partnership owns the Canadian Malartic
mine in northwestern Quebec and
operates it through a joint management committee. Each of
Agnico Eagle and Yamana has a direct and indirect 50% ownership
interest in the Partnership. All volume data in this section
reflect the Company's 50% interest in the Canadian Malartic mine,
except as otherwise indicated. The Odyssey underground
project was approved for construction in February 2021.
Canadian Malartic
Mine – Operating Statistics*
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Three Months
Ended
|
|
Three Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
5,828
|
|
4,502
|
Tonnes of ore milled
per day (100%)**
|
63,348
|
|
59,150
|
Gold grade
(g/t)
|
1.03
|
|
1.00
|
Gold production
(ounces)
|
86,803
|
|
63,093
|
Production costs per
tonne (C$)
|
$
|
27
|
|
$
|
31
|
Minesite costs per
tonne (C$)
|
$
|
27
|
|
$
|
29
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
719
|
|
$
|
819
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
705
|
|
$
|
772
|
|
*In the third
quarter of 2020, the Barnat open pit had 13,305 ounces of
pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 76 days in the third quarter of
2020.
|
Gold production in the third quarter of 2021 increased when
compared to the prior-year period primarily due to higher
throughput levels and higher gold grades. The higher
throughput primarily resulted from strong operational performance,
with a record quarterly production excavated from the pits (18.9
million tonnes) and a record quarterly ore milled (5.83 million
tonnes or 63,348 tpd). The higher gold grade primarily
resulted from increased sourcing of ore from the higher grade
Barnat pit in the third quarter of 2021.
Production costs per tonne in the third quarter of 2021
decreased when compared to the prior-year period primarily due to
lower mill production costs resulting from higher throughput levels
and the timing of unsold inventory. Production costs per
ounce in the third quarter of 2021 decreased when compared to the
prior-year period primarily due to higher gold grades and lower
production costs per tonne, partially offset by the strengthening
of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the third quarter of 2021 decreased
when compared to the prior-year period primarily due to lower mill
production costs resulting from higher throughput levels.
Total cash costs per ounce in the third quarter of 2021 decreased
when compared to the prior-year period primarily due to lower
minesite costs per tonne and higher gold grades, partially offset
by the strengthening of the Canadian dollar against the U.S.
dollar.
Canadian Malartic
Mine – Operating Statistics*
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
16,730
|
|
13,600
|
Tonnes of ore milled
per day (100%)**
|
61,282
|
|
54,973
|
Gold grade
(g/t)
|
1.11
|
|
0.94
|
Gold production
(ounces)
|
268,459
|
|
179,016
|
Production costs per
tonne (C$)
|
$
|
27
|
|
$
|
27
|
Minesite costs per
tonne (C$)
|
$
|
28
|
|
$
|
27
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
675
|
|
$
|
769
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
659
|
|
$
|
756
|
|
*In the first nine
months of 2020, the Barnat open pit had 18,930 ounces of
pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 247 days in the first nine months of
2020.
|
Gold production in the first nine months of 2021 increased when
compared to the prior-year period primarily due to higher
throughput and higher gold grades. The higher throughput
primarily resulted from strong operational performance and
continuous operation through the first nine months of 2021 while,
in the prior-year period, the operations were suspended from
March 23, 2020 to April 17, 2020 due to the Quebec Order. The
higher gold grade primarily resulted from increased sourcing of ore
from the higher grade Barnat pit in the first nine months of 2021
while, in the prior-year period, lower grade stockpiles were
processed during the ramp-up of operations following the Quebec
Order.
Production costs per tonne in the first nine months of 2021 were
the same when compared to the prior-year period primarily due to
higher open pit production costs resulting from a higher stripping
ratio at the Barnat pit, offset by higher throughput and higher
deferred stripping adjustment. Production costs per ounce in
the first nine months of 2021 decreased when compared to the
prior-year period primarily due to higher gold production,
partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Minesite costs per tonne in the first nine months of 2021 were
essentially the same when compared to the prior-year period
primarily due to higher open pit production costs resulting from a
higher stripping ratio at the Barnat pit, mostly offset by higher
throughput and higher deferred stripping adjustment. Total
cash costs per ounce in the first nine months of 2021 decreased
when compared to the prior-year period primarily due to higher gold
production, partially offset by the strengthening of the Canadian
dollar against the U.S. dollar.
Operational Highlights
- The mine had another strong quarter, achieving a second
consecutive quarterly record for tonnes mined at 18.9 million
tonnes. The Canadian Malartic pit production was lower than planned
due to limited mining flexibility from a reduced footprint at the
bottom of the pit combined with a higher density of underground
openings. The lower performance from the Canadian Malartic pit was
more than offset by a strong performance at the Barnat pit
primarily due to low truck cycle time and softer rock
conditions
- The mill set a new quarterly record for tonnage milled,
processing 5,829,200 tonnes (63,348 tpd on a 100% basis) in the
third quarter of 2021, helped by the softer ground conditions at
Barnat
Project Highlights
Canadian Malartic:
- Tailings disposal is expected to transition to in-pit
deposition in 2024 following the completion of mining in the
Canadian Malartic pit in 2023. To add flexibility for tailings
disposal prior to the transition, construction to increase current
cell capacity is expected to start in the fourth quarter of
2021
Odyssey Project:
- In the third quarter of 2021, underground development was
slightly below plan as a result of lower equipment and personnel
availability. The ramp development, with 1,118 metres completed in
2021, remains ahead of schedule and below budget from lower
development unit costs than anticipated. The excavation of the
first ventilation raise was started and advanced by 25 metres. In
the fourth quarter of 2021, the focus will remain on the
development of the main ramp, the exploration drift and the
production levels 16 and 21
- Automation technology was successfully tested with the
operation of a development scoop from surface
- In the third quarter of 2021, the contracts for production
equipment and service equipment were awarded, with equipment
delivery expected to start in 2022. Production equipment will have
electric and diesel engines, while the service equipment will be
battery powered
- The contract for the shaft sinking is expected to be awarded in
the fourth quarter of 2021. The sinking infrastructure procurement
is on schedule and on budget. The shaft sinking is expected to
start in the fourth quarter of 2022
- The concrete headframe slipform pour started on September 29, 2021 and was completed in
October 2021. The structural steel
installation is expected to start in the fourth quarter of 2021.
The headframe construction is on schedule and on budget
- The concrete foundation for the maintenance garage was
completed in the third quarter of 2021. The surface facilities of
the maintenance garage are expected to be completed by the second
quarter of 2022
Exploration
- Highlights from infill drilling at the East Gouldie deposit
during the third quarter of 2021 include: hole MEX21-208, which was
drilled into the shallower, western portion of the deposit and
intersected 6.8 g/t gold over 41.4 metres at 1,069 metres depth,
including 10.4 g/t gold over 20.6 metres at 1,064 metres depth; and
hole MEX21-203R, which was drilled into the central core of the
deposit and intersected 8.0 g/t gold over 25.5 metres at 1,496
metres depth, including 14.5 g/t gold over 10.6 metres at 1,497
metres depth
- On the adjacent Rand Malartic property, hole RD21-4678 returned
6.3 g/t gold over 4.8 metres at 1,989 metres depth, extending the
East Gouldie deposit 1.5 kilometres east of the current mineral
resources outline, further demonstrating the excellent potential to
significantly grow the size of the East Gouldie deposit
- At Canadian Malartic in 2021, the Company expects to spend
$11.9 million (50% basis) for 141,400
metres (100% basis) of exploration and conversion drilling focused
on continued development of the East Gouldie deposit. The regional
exploration budget was increased from $3.2
million (50% basis) to $4.4
million (50% basis) to add additional pierce points into the
newly defined eastern extension of the East Gouldie deposit
Exploration results for the Canadian Malartic mine are expected
to be reported in a Company News Release on November 2, 2021.
Goldex – Steady Cost Performance Continues; Akasaba Project
Under Review For Potential Start-Up
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
695
|
|
709
|
Tonnes of ore milled
per day
|
7,554
|
|
7,707
|
Gold grade
(g/t)
|
1.40
|
|
1.50
|
Gold production
(ounces)
|
28,823
|
|
31,008
|
Production costs per
tonne (C$)
|
$
|
42
|
|
$
|
41
|
Minesite costs per
tonne (C$)
|
$
|
41
|
|
$
|
42
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
806
|
|
$
|
703
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
762
|
|
$
|
702
|
Gold production in the third quarter of 2021 decreased when
compared to the prior-year period primarily due to lower gold
grades and lower throughput levels, partially offset by higher gold
recovery at the mill. Adjustments to the mining sequence to
manage a blockage in the pastefill network resulted in lower than
expected ore tonnes from the higher grade South zone.
Production costs per tonne in the third quarter of 2021 were
essentially the same when compared to the prior-year period.
Production costs per ounce in the third quarter of 2021 increased
when compared to the prior-year period primarily due to the
strengthening of the Canadian dollar against the U.S. dollar and
the lower gold grades.
Minesite costs per tonne in the third quarter of 2021 were
essentially the same when compared to the prior-year period.
Total cash costs per ounce in the third quarter of 2021 increased
when compared to the prior-year period due to the strengthening of
the Canadian dollar against the U.S. dollar and the lower gold
grades.
Goldex Mine –
Operating Statistics
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
2,145
|
|
1,899
|
Tonnes of ore milled
per day
|
7,857
|
|
6,931
|
Gold grade
(g/t)
|
1.57
|
|
1.58
|
Gold production
(ounces)
|
98,132
|
|
88,033
|
Production costs per
tonne (C$)
|
$
|
41
|
|
$
|
41
|
Minesite costs per
tonne (C$)
|
$
|
41
|
|
$
|
41
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
723
|
|
$
|
659
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
686
|
|
$
|
653
|
Gold production in the first nine months of 2021 increased when
compared to the prior-year period primarily due to higher mill
throughput levels. The higher throughput primarily resulted
from continuous operation through the period while, in the
prior-year period, the operations were suspended from March 23, 2020 to April
24, 2020 due to the Quebec Order.
Production costs per tonne in the first nine months of 2021 were
the same when compared to the prior-year period. Production
costs per ounce in the first nine months of 2021 increased when
compared to the prior-year period primarily due to the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first nine months of 2021 were
the same when compared to the prior-year period. Total cash
costs per ounce in the first nine months of 2021 increased when
compared to the prior-year period due to the strengthening of the
Canadian dollar against the U.S. dollar.
Operational Highlights
- In the third quarter of 2021, production included higher
production from the lower-grade M&E zones due to temporary
issues with the pastefill network which resulted in an
adjustment of the mining sequence and affected production from the
higher grade South zone and the Deep 1 zone.
- In the fourth quarter of 2021, with the pastefill network back
to full operation, Goldex expects to return to production levels
seen in the first and second quarters of 2021
- The extraction of the first six stopes from the South zone
indicate that gold grade is better than predicted by the block
model and that performance on dilution is better than expected
Project Highlights
- The Company is revisiting the Akasaba West project with the
intention to integrate it into the Goldex production profile. An
internal technical evaluation is being updated to reflect current
financial parameters and to optimize the production rate
- The Company acquired the Akasaba West gold-copper deposit in
January 2014. All the necessary
permits were received in 2018. In February
2019, the Company decided to postpone the development of the
Akasaba West open pit based on the prioritization of development
capital spending
- Located less than 30 kilometres from Goldex, the Akasaba West
deposit is expected to create flexibility and synergies for the
Company's operations in the Abitibi region by utilizing extra
milling capacity at both Goldex and LaRonde. Akasaba West contains
probable mineral reserves of 147,000 ounces of gold and 25,900
tonnes of copper (5.4 million tonnes grading 0.85 g/t gold and
0.48% copper)
Kirkland Lake Project – Drilling Continues to Encounter a
Broad Zone of High Grade Gold-Copper Mineralization Outside of the
Known Mineral Resource Outline at Upper Beaver Project; Exploration
Testing New Targets at Upper Canada Gold Deposit
The 100% owned Kirkland Lake
project in northeastern Ontario
covers approximately 25,506 hectares (approximately 35 kilometres
long by 17 kilometres wide) in the prolific Kirkland Lake mining district.
At the Upper Beaver gold-copper deposit in the north-east area
of the Company's Kirkland Lake
property, drilling in the Footwall zone continues to return a broad
zone of high-grade gold and copper outside of the current mineral
resources and investigation continues upward from depth towards
surface to extend mineralization and connect it with the Footwall
zone at depth.
Conversion drilling below 1,400 metres depth has returned a
thick high-grade intersection of the East Porphyry zone, with hole
KLUB21-307W13 returning 8.7 g/t gold and 0.81% copper over 18.2
metres at 1,435 metres depth.
These recent results are expected to have a positive impact on
the mineral reserves and mineral resources. An updated
internal evaluation on Upper Beaver project is expected to be
completed in 2022.
Approximately 57,000 metres of drilling have been completed
during the first nine months of 2021 at the Kirkland Lake project, with the shallow and
deep resource conversion programs at Upper Beaver remaining the
focus. Regional exploration is also ongoing over different
areas of the large land package owned by Agnico Eagle in the
Kirkland Lake district including
the Upper Canada, Munro,
Skead and Bidgood properties.
Exploration results for the Kirkland
Lake project are expected to be reported in a Company News
Release on November 2, 2021.
NUNAVUT REGION
Agnico Eagle considers Nunavut
a politically attractive and stable jurisdiction with enormous
geological potential. With the Company's Meliadine mine and
Meadowbank Complex (including the Amaruq satellite deposit),
together with the recently acquired Hope Bay mine and other
exploration projects, Nunavut has
the potential to be a strategic operating platform for the Company
with the ability to generate strong gold production and cash flows
over several decades.
Meliadine Mine – Record Quarterly Gold Production;
Nunavummiut Workforce Successfully Reintegrated in the Third
Quarter of 2021
Located near Rankin Inlet in
the Kivalliq District of Nunavut,
Canada, the Meliadine project was acquired in July
2010. The Company owns 100% of the 111,358-hectare
property. In February 2017, the
Company's Board of Directors approved the construction of the
Meliadine project and commercial production was declared on
May 14, 2019.
Meliadine Mine –
Operating Statistics*
|
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
377
|
|
368
|
Tonnes of ore milled
per day**
|
|
4,572
|
|
4,000
|
Gold grade
(g/t)
|
|
7.58
|
|
8.16
|
Gold production
(ounces)
|
|
90,143
|
|
94,775
|
Production costs per
tonne (C$)
|
|
$
|
175
|
|
$
|
244
|
Minesite costs per
tonne (C$)
|
|
$
|
202
|
|
$
|
240
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
585
|
|
$
|
706
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
634
|
|
$
|
695
|
|
*In the third
quarter of 2021, the Tiriganiaq open pit had 6,881 ounces of
pre-commercial gold production. In the third quarter of 2020,
the Tiriganiaq open pit had 1,982 ounces of pre-commercial gold
production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 82 days in the third quarter of
2021
|
Gold production (excluding pre-commercial gold production) in
the third quarter of 2021 decreased when compared to the prior-year
period primarily due to lower gold grades as per the mining
sequence and increased tonnage from the lower grade open pit ore,
partially offset by higher throughput levels.
Production costs per tonne in the third quarter of 2021
decreased when compared to the prior-year period due to higher
throughput levels and the timing of unsold inventory, partially
offset by higher site services costs, and the inclusion of open pit
costs following the commencement of commercial production at
Tiriganiaq. Production costs per ounce in the third quarter
of 2021 decreased when compared to the prior-year period due to
lower production costs per tonne and the timing of unsold
inventory, partially offset by the strengthening of the Canadian
dollar against the U.S. dollar and the lower gold grades.
Minesite costs per tonne in the third quarter of 2021 decreased
when compared to the prior-year period primarily due to higher
throughput levels, partially offset by higher site services costs,
and the inclusion of open pit costs following the commencement
of commercial production at Tiriganiaq. Total cash costs per
ounce in the third quarter of 2021 decreased when compared to the
prior-year period due to lower minesite costs per tonne, partially
offset by the lower gold grades.
Meliadine Mine –
Operating Statistics*
|
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,039
|
|
1,012
|
Tonnes of ore milled
per day**
|
|
4,590
|
|
3,693
|
Gold grade
(g/t)
|
|
7.51
|
|
7.08
|
Gold production
(ounces)
|
|
265,787
|
|
224,125
|
Production costs per
tonne (C$)
|
|
$
|
203
|
|
$
|
243
|
Minesite costs per
tonne (C$)
|
|
$
|
214
|
|
$
|
243
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
630
|
|
$
|
814
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
626
|
|
$
|
822
|
|
*In the first nine
months of 2021, the Tiriganiaq open pit had 24,057 ounces of
pre-commercial gold production. In the first nine months of
2020, the Tiriganiaq open pit had 1,982 ounces of pre-commercial
gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 224 days in the first nine months of
2021.
|
Gold production in the first nine months of 2021 increased when
compared to the prior-year period primarily due to higher gold
grades as expected based on the mining sequence and higher
throughput levels. In the prior-year period, the Meliadine
processing plant was affected by a failure of the crusher apron
feeder resulting in lower throughput levels in the first quarter of
2020 and by reduced operating rates related to measures taken to
reduce the spread of COVID-19 in the second quarter of 2020.
Production costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period due to higher
throughput and the timing of unsold inventory. Production
costs per ounce in the first nine months of 2021 decreased when
compared to the prior-year period due to lower production costs per
tonne and higher gold grades, partially offset by the strengthening
of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period primarily due to
higher throughput. Total cash costs per ounce in the first
nine months of 2021 decreased when compared to the prior-year
period due to lower minesite costs per tonne and higher gold
grades.
Operational Highlights
- The gradual reintegration of the Nunavummiut workforce was
completed in the third quarter of 2021
- Meliadine delivered another strong quarter of operational
performance with a record quarterly gold production of 97,024
ounces (including 6,881 gold ounces of pre-commercial production
from the Tiriganiaq open pit)
- Commercial production at the Tiriganiaq open pit was declared
on August 15, 2021, 15 days ahead of
schedule
- The saline water discharge to sea season started on
August 14, 2021 and was almost
completed at the end of the quarter
- Phase 2 expansion work is progressing as planned, with
environmental fieldwork, engineering studies and consultations
ongoing
- Sealift activities for the 2021 season are progressing as
planned and are expected to be completed in the fourth quarter of
2021
Water Management Update
- Waterline Activities – The Nunavut Impact Review Board reviewed
the permit application and issued a positive recommendation on the
waterline project. The decision from the federal minister of
Northern Affairs was delayed due to the Federal election and is now
expected to be received in the fourth quarter of 2021. The delay is
not expected to have any significant impact on the saline water
storage capacity
Exploration - Mine Site Conversion Drilling Update
During delineation drilling at the Tiriganiaq deposit, hole
M425-156-F1 intersected 27.4 metres grading 20.3 g/t gold (capped
at 50 g/t gold) at a depth of 380 metres, with mineralization
appearing to be associated with the veining. The intersection
is in an interlode area where no stope had been planned and below a
stope where mining is occurring. The grade is much higher
than expected by the current block model and the results
demonstrate why production at Tiriganiaq is exceeding the contained
ounces in mineral reserve estimate as infill drilling and mining of
the deposit progresses.
At Meliadine in 2021, the Company expects to spend $8.3 million for 44,000 metres of capitalized
drilling with a focus on conversion at the Tiriganiaq, Normeg and
Wesmeg deposits, as well as exploration drilling of the Tiriganiaq,
Wesmeg, Pump, F-Zone and Wolf deposits.
In regional exploration, drilling is continuing to test targets
around the Discovery deposit including the Aquarius target located
12 kilometres southeast of the mine, which is characterized by a
mineralized iron formation similar to the Discovery and Tiriganiaq
deposits. The Company expects to spend an additional
$1.5 million for 7,000 metres of
regional exploration drilling on the wider Meliadine property in
2021.
Exploration results from the Meliadine property will be
presented in the Company's News Release dated November 2, 2021.
Meadowbank Complex – Record Quarterly Gold Production;
Optimization and Cost Reduction Initiatives Continue; Step-Out
Drilling Intercepts Significant Mineralization in the Mammoth
Area
The 100% owned Meadowbank Complex is located approximately 110
kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of
the Meadowbank mine and mill and the Amaruq satellite deposit,
which is located 50 kilometres northwest of the Meadowbank
mine. The Meadowbank mine achieved commercial production in
March 2010, and mining activities at
the site were completed by the fourth quarter of 2019.
The Amaruq mining operation uses the existing infrastructure at
the Meadowbank minesite. Additional infrastructure has also
been built at the Amaruq site. Amaruq ore is transported
using long haul off-road type trucks to the mill at the Meadowbank
site for processing. The Amaruq satellite deposit achieved
commercial production on September 30,
2019.
Meadowbank Complex
– Operating Statistics
|
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
971
|
|
907
|
Tonnes of ore milled
per day
|
|
10,554
|
|
9,859
|
Gold grade
(g/t)
|
|
3.13
|
|
2.79
|
Gold production
(ounces)
|
|
89,706
|
|
74,921
|
Production costs per
tonne (C$)
|
|
$
|
143
|
|
$
|
138
|
Minesite costs per
tonne (C$)
|
|
$
|
144
|
|
$
|
139
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,242
|
|
$
|
1,231
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,214
|
|
$
|
1,260
|
In the third quarter of 2021, gold production increased when
compared to the prior-year period primarily due to the higher
mining rate and mill throughput, and higher gold grades with the
deepening of the pit and the contribution from the IVR open
pit. The higher throughput in the third quarter of 2021
resulted from solid mill performance and good ore grinding
properties.
Production costs per tonne in the third quarter of 2021
increased when compared to the prior-year period primarily due to
higher use of aggregates, higher labour rates related to higher
contractor ratio, higher sealift costs from increased material
transportation and lower capitalized deferred stripping
adjustments, partially offset by the timing of inventory
sales. Production costs per ounce in the third quarter of
2021 increased when compared to the prior-year period due to the
strengthening of the Canadian dollar against the U.S. dollar and
the higher production costs per tonne, partially offset by higher
gold grades.
Minesite costs per tonne in the third quarter of 2021 increased
when compared to the prior-year period primarily due to the reasons
described above. Total cash costs per ounce in the third
quarter of 2021 decreased when compared to the prior-year period
primarily due to higher gold grades, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar and
the higher minesite costs per tonne.
Meadowbank Complex
– Operating Statistics*
|
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
2,774
|
|
1,798
|
Tonnes of ore milled
per day
|
|
10,168
|
|
6,562
|
Gold grade
(g/t)
|
|
3.12
|
|
2.64
|
Gold production
(ounces)
|
|
255,222
|
|
140,679
|
Production costs per
tonne (C$)
|
|
$
|
134
|
|
$
|
157
|
Minesite costs per
tonne (C$)
|
|
$
|
137
|
|
$
|
155
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,155
|
|
$
|
1,494
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,139
|
|
$
|
1,511
|
|
*In the first nine
months of 2021, the Amaruq underground project had 348 ounces of
pre-commercial gold production.
|
In the first nine months of 2021, gold production increased when
compared to the prior-year period primarily due to higher
throughput resulting from improved operational performance,
optimization of processing facility throughput and higher gold
grades with deepening of the pit and the contribution from the IVR
open pit. In the prior-year period, production activities at
the Complex were reduced and the mill was put on care and
maintenance from March 19, 2020 to
May 28, 2020 related to the
implementation of measures to reduce the spread of COVID-19.
Production costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period primarily due to
higher mill throughput, partially offset by lower deferred
stripping adjustment. Production costs per ounce in the first
nine months of 2021 decreased when compared to the prior-year
period due to higher gold production and lower production costs per
tonne, partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Minesite costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period primarily due to
higher mill throughput, partially offset by lower deferred
stripping adjustment. Total cash costs per ounce in the first
nine months of 2021 decreased when compared to the prior-year
period due to higher gold production and lower minesite costs per
tonne, partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Operational Highlights
- At the end of June 2021, the
Company began a gradual reintegration of the Nunavummiut workforce.
This reintegration was completed in October
2021
- In the third quarter of 2021, the Meadowbank Complex continued
to optimize its operations and achieved a record quarterly
production of 89,706 ounces of gold despite challenges related to
heavy rainfalls and their impact on production drilling
- Gold grades to the mill were lower than forecast as a result of
the changes in the mining sequence as reported in the Company's
news release dated July 28, 2021,
higher than expected dilution and production delays related to the
above average rainfall in July and August of 2021
- In the third quarter of 2021, as a result of the above events
and a higher stripping ratio, operating costs were higher than
expected. The Company continues to work on optimization and cost
reduction initiatives, which, so far, have resulted in improved
fleet performance
- The long haul truck fleet demonstrated another quarter of
strong performance as a result of good mechanical availability,
improved productivity and no delays from the caribou migration. An
additional four long haul trucks are expected to be received in
October 2021, adding to the fleet
capacity
- The Company had planned to complete a five-day mill shutdown in
the third quarter of 2021 to tie-in the High Pressure Grinding
Rolls. This shutdown was delayed until the first week of
October 2021 and was extended to
seven days to permit the completion of additional mill
maintenance
- The sealift activities for the 2021 season were successfully
completed in October 2021
- In 2021, gold production has been averaging approximately
85,000 ounces per quarter. The recent changes in mining sequence
and production delays have introduced some variability in the
production plan for the remainder of 2021 and gold production in
the fourth quarter of 2021 is now expected to be below the 2021
quarterly average. The shortfall in yearly gold output at the
Meadowbank Complex is expected to be offset by better than forecast
gold production at Meliadine
Underground Project Highlights
- Underground development continues to progress ahead of schedule
with 723 metres completed in the third quarter of 2021. The Alimak
raise as well as the emergency egress were completed during the
quarter
- For the fourth quarter of 2021, the focus is shifting to
operational readiness
- The engineering and procurement activities for the underground
infrastructure, including the main ventilation system, the
underground maintenance shop and the cemented rockfill plant, are
on target to be ready for production which is expected in the first
half of 2022
Exploration
- In 2021 at the Meadowbank Complex, $7.0
million is budgeted for 34,900 metres of drilling, including
23,900 metres of conversion drilling and 11,000 metres of
exploration drilling focused on testing extensions of the IVR
deposit and the Whale Tail deposit in the Mammoth Lake area, and on
regional exploration targets
- In the Mammoth area, approximately 600 metres to the west
of the Whale Tail pit, drilling has encountered significant
intercepts such as 4.7 g/t gold over 18.8 metres at 254 metres
depth and 5.1 g/t gold over 4.7 metres at 179 metres depth.
Additional holes are planned to test for extensions to these
zones
- Exploration results for the Meadowbank Complex are expected to
be reported in a Company News Release on November 2, 2021.
Hope Bay Mine – Operations
Temporarily Idled in September 2021
due to a COVID-19 Outbreak; Operations, Including Exploration,
Expected to Gradually Resume in November
2021; Exploration Drilling Confirms Extension of West Valley
Zone
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres
southwest of Cambridge Bay, the
Hope Bay mine was acquired in February 2021. The Company owns
100% of the 205,171-hectare property which includes the Hope Bay
and Elu greenstone belts. The 80-kilometre long Hope Bay
greenstone belt hosts three gold deposits (Doris, Madrid and Boston) with historical mineral reserves and
mineral resources and over 90 regional exploration targets.
At the time the Hope Bay mine was acquired, construction at the
Doris deposit was complete and commercial production had been
achieved in the second quarter of 2017. The Company has
initiated a property wide exploration program and is evaluating the
Madrid and Boston deposits for future production.
Hope Bay Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2021*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
87
|
|
221
|
Tonnes of ore milled
per day
|
|
946
|
|
917
|
Gold grade
(g/t)
|
|
7.20
|
|
8.58
|
Gold production
(ounces)
|
|
17,957
|
|
55,524
|
Production costs per
tonne (C$)
|
|
$
|
323
|
|
$
|
362
|
Minesite costs per
tonne (C$)
|
|
$
|
347
|
|
$
|
329
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,242
|
|
$
|
1,152
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,333
|
|
$
|
1,053
|
|
*All metrics are
for the period from February 2, 2021 to September 30,
2021.
|
Gold production in the third quarter of 2021 at Hope Bay was
17,957 ounces, with production costs per tonne of C$323, production costs per ounce of $1,242, minesite costs per tonne of C$347 and total cash costs per ounce of
$1,333. The increase in total
cash costs per ounce when compared to the second quarter of 2021
and guidance is primarily a result of lower gold grades as per the
mining sequence, lower recoveries related to lower gold grades and
the timing of inventory.
Gold production in the first nine months of 2021 at Hope Bay was
55,524 ounces, with production costs per tonne of C$362, production costs per ounce of $1,152, minesite costs per tonne of C$329 and total cash costs per ounce of
$1,053. All metrics for the
first nine months of 2021 are from February
2, 2021 to September 30,
2021.
COVID-19 Update
In late September and again in mid-October, there were
a significant number of COVID-19 cases identified at
site. All employees and contractors had been tested for
COVID-19 in Edmonton or Yellowknife before boarding and assessed to be
negative for COVID-19. Despite this testing, some employees
then tested positive at site.
Given these events, and with the safety of the employees and the
communities as paramount, the Company has made the decision to idle
operations as it investigates opportunities to improve screening
and testing at the Edmonton and
Yellowknife facilities and health
protocols at site.
The Company expects to begin returning employees starting in
early November 2021. Full operations,
including exploration, are expected to resume once the Company is
satisfied that improved health and safety protocols are in place.
As a result, production from Hope Bay in the fourth quarter of 2021
is expected to be reduced.
The mine remains isolated from the local communities and the
Company believes that the risk of contagion to surrounding
communities remains low.
While disappointing, the Company remains committed to the safety
of its people and communities. Exploration results at Hope
Bay, though still early, have been promising and the Company
remains confident of the long term potential of the land
package.
Operational Highlights
- In the third quarter of 2021, the site experienced a fatal
accident at an exploration site involving a worker from the
drilling contractor
- In the third quarter of 2021, the operation was interrupted by
the fatality noted above and a COVID-19 outbreak, which reduced the
number of operating days. In addition, a change in mining
sequence resulted in lower tonnes mined and lower grades milled,
resulting in higher operating costs than anticipated
- In the third quarter of 2021, the operation continued the
discharge of saline water to Roberts Bay
Projects Highlights
- Internal evaluations are underway to establish the long-term
plans for Madrid and Boston and to decide on a strategy for the
mill as well as the position of the future Madrid portal
- The wind turbine project is progressing and the team is
evaluating construction constraints, costs estimation and schedule,
in order to work towards a commercial agreement. Financing
activities for a potential grant are also progressing
Exploration
Drilling at the Doris mine at the Hope Bay project during the
third quarter of 2021 continued to return high-grade intersections
over significant widths.
Recent drill results from the West Valley area at Doris have
confirmed the extension of the West Valley Zone down-plunge to the
south and above the dike, with highlights including hole
DCN21-50441 returning 19.1 g/t gold over 8.0 metres at 302 metres
depth and hole DCN21-50384 returning 8.5 g/t gold over 9.0 metres
at 281 metres depth.
The development of the West Valley exploration drift is under
way, and it will be used to fill the drilling gap in the West
Valley between the dike and the previously defined West Valley
mineralization at shallower depths to the north.
Exploration results for the Hope Bay project are expected to be
reported in a Company News Release on November 2, 2021.
FINLAND
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. The expansion of the Kittila mill
to 2.0 million tonnes per annum was completed in the fourth quarter
of 2020. An underground shaft is under construction and is
expected to be commissioned in 2022. Exploration activities
continue to expand the mineral reserves and mineral resources at
the Kittila mine. Near mine exploration remains the main
focus as the deposit remains open at depth and laterally.
Kittila – Record Quarterly Mill Feed Drives Record Quarterly
Gold Production; Commissioning of New Main Underground Level
Underway
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
549
|
|
429
|
Tonnes of ore milled
per day
|
|
5,967
|
|
4,663
|
Gold grade
(g/t)
|
|
4.03
|
|
4.38
|
Gold production
(ounces)
|
|
62,089
|
|
53,149
|
Production costs per
tonne (EUR)
|
|
€
|
79
|
|
€
|
87
|
Minesite costs per
tonne (EUR)
|
|
€
|
79
|
|
€
|
83
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
824
|
|
$
|
861
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
826
|
|
$
|
813
|
Gold production in the third quarter of 2021 increased when
compared to the prior-year period primarily due to higher
throughput resulting from the ramp-up of the Kittila mill to its
expanded capacity of two million tonnes per annum, partially offset
by the lower gold grades related to adjustments to the mining
sequence.
Production costs per tonne in the third quarter of 2021
decreased when compared to the prior-year period primarily due to
reduced contractor usage for development and haulage, higher
throughput levels and the timing of inventory. Production
costs per ounce in the third quarter of 2021 decreased when
compared to the prior-year period due to lower production costs per
tonne and the timing of unsold inventory, partially offset by lower
gold grades.
Minesite costs per tonne in the third quarter of 2021 decreased
when compared to the prior-year period primarily due to reduced
contractor usage for development and haulage and higher throughput
levels. Total cash costs per ounce in the third quarter of
2021 increased when compared to the prior-year period due to lower
gold grades, partially offset by lower minesite costs per
tonne.
Kittila Mine –
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,526
|
|
1,349
|
Tonnes of ore milled
per day
|
|
5,590
|
|
4,923
|
Gold grade
(g/t)
|
|
4.12
|
|
4.33
|
Gold production
(ounces)
|
|
176,068
|
|
163,069
|
Production costs per
tonne (EUR)
|
|
€
|
81
|
|
€
|
86
|
Minesite costs per
tonne (EUR)
|
|
€
|
81
|
|
€
|
82
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
839
|
|
$
|
812
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
843
|
|
$
|
776
|
Gold production in the first nine months of 2021 increased when
compared to the prior-year period primarily due to higher
throughput resulting from the ramp-up of the Kittila mill to its
expanded capacity of two million tonnes per annum, partially offset
by a planned eleven-day shutdown for regular maintenance on the
autoclave in the second quarter of 2021 and lower gold grades
related to adjustments to the mining sequence.
Production costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period primarily due to
the timing of unsold inventory and reduced contractor usage for
development and haulage, partially offset by stockpile adjustments.
Production costs per ounce in the first nine months of 2021
increased when compared to the prior-year period due to the
strengthening of the Euro against the U.S. dollar and the lower
gold grades, partially offset by the timing of inventory sales and
the lower production costs per tonne.
Minesite costs per tonne in the first nine months of 2021 were
essentially the same when compared to the prior-year period
primarily due to the reduced contractor usage for development and
haulage, mostly offset by stockpile adjustments. Total cash
costs per ounce in the first nine months of 2021 increased when
compared to the prior-year period due to the strengthening of the
Euro against the U.S. dollar and lower gold grades.
Operational Highlights
- In the third quarter of 2021, the Kittila operation continued
to deliver strong operational performance, with a record quarterly
mill volume at approximately 550,000 tonnes processed and higher
gold recovery than anticipated at 87.2% driving a record quarterly
gold production at 62,089 ounces
- Ore production was also higher than expected at 489,000 tonnes
mined. The gold grades were affected by adjustments to the mining
sequence related to delayed paste backfill. As a result, some
stopes with high gold grades have been pushed into the fourth
quarter of 2021 and into 2022
- In the third quarter of 2021, the Company began installing a 5G
network on surface and in the main ramps, and installation in the
underground production areas will follow. The 5G network is
expected to further enhance the possibilities to implement higher
levels of automation technologies to the underground operations
- The underground mine transferred a fourth main production drill
rig to remote drilling. The technology was successfully tested
during the quarter, with two operators operating four drill rigs.
The target is to drill 75% of all production drilling metres
through remote drilling
Project Highlights
- The Kittila shaft sinking is progressing and the shaft
commissioning is still expected to be completed in the second half
of 2022. The overall project costs remain within the previously
disclosed estimated range of €190 to €200 million
- As part of the expansion project at the Kittila mine, the phase
1 of the new main level 900 was commissioned in the third quarter
of 2021. Phase 1 included the underground lunch room, social
facilities, supervisor offices and parking area. In phase 2, the
maintenance garage and storage facilities will be commissioned
Exploration
- At the Kittila mine in 2021, $14.3
million is budgeted for 74,500 metres of conversion and
exploration drilling that aims to further explore and expand
Kittila's mineral reserve and mineral resource potential. A main
focus is to demonstrate the economic potential of the Sisar Zone as
a new mining horizon at Kittila below the current mineral resources
limit at 1,540 metres depth to assess the full potential of the
project
- Exploration results for the Kittila mine are expected to be
reported in a Company News Release on November 2, 2021.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations have been a solid source of precious
metals production (gold and silver) with stable operating costs and
strong free cash flow since 2009.
Pinos Altos – Production
Positively Affected by Higher Gold Grades; Costs Higher Due to
Lower Silver By-Product Revenue
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
|
444
|
|
558
|
Tonnes of ore
processed per day
|
|
4,826
|
|
6,065
|
Gold grade
(g/t)
|
|
2.40
|
|
1.89
|
Gold production
(ounces)
|
|
32,402
|
|
30,937
|
Production costs per
tonne
|
|
$
|
84
|
|
$
|
59
|
Minesite costs per
tonne
|
|
$
|
78
|
|
$
|
61
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,156
|
|
$
|
1,071
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
854
|
|
$
|
677
|
Gold production in the third quarter of 2021 increased when
compared to the prior-year period primarily due to higher than
forecast gold grades from two stopes mined at Cerro Colorado, partially offset by lower
throughput levels.
Production costs per tonne in the third quarter of 2021
increased when compared to the prior-year period primarily due to
lower throughput levels, higher processing costs related to higher
unit costs for reagents and grinding media and the timing of unsold
inventory. Production costs per ounce in the third quarter of
2021 increased when compared to the prior-year period due to higher
production costs per tonne for the reasons described above and the
timing of the inventory, partially offset by higher gold
grades.
Minesite costs per tonne in the third quarter of 2021 increased
when compared to the prior-year period primarily due to lower
throughput levels. Total cash costs per ounce in the third
quarter of 2021 increased when compared to the prior-year period
due to higher minesite costs per tonne and lower by-product
revenues from lower silver grades, partially offset by higher gold
grades.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
|
1,458
|
|
1,252
|
Tonnes of ore
processed per day
|
|
5,341
|
|
4,569
|
Gold grade
(g/t)
|
|
2.12
|
|
2.08
|
Gold production
(ounces)
|
|
94,191
|
|
78,127
|
Production costs per
tonne
|
|
$
|
75
|
|
$
|
70
|
Minesite costs per
tonne
|
|
$
|
72
|
|
$
|
64
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,155
|
|
$
|
1,117
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
847
|
|
$
|
740
|
Gold production in the first nine months of 2021 increased when
compared to the prior-year period primarily due to higher
throughput as the minesite operated at planned levels through the
period while, in the prior-year period, the operations were
suspended from April 2, 2020 to
May 18, 2020 as the Government of
Mexico mandated the suspension of
all non-essential businesses in response to the COVID-19 pandemic
(the "Decree").
Production costs per tonne in the first nine months of 2021
increased when compared to the prior-year period primarily due to
higher processing costs related to higher unit costs for reagents
and grinding media and higher diesel consumption to run generators
during a one week power outage that affected northern Mexico in February
2021, partially offset by higher throughput.
Production costs per ounce in the first nine months of 2021
increased when compared to the prior-year period due to higher
production costs per tonne, partially offset by higher gold
grades.
Minesite costs per tonne in the first nine months of 2021
increased when compared to the prior-year period primarily due to
higher processing costs and higher diesel consumption for the
reasons described above, partially offset by higher
throughput. Total cash costs per ounce in the first nine
months of 2021 increased when compared to the prior-year period due
to higher minesite costs per tonne and lower by-product revenues
from lower silver grades, partially offset by higher gold
grades.
Operational Highlights
- In the first half of 2021, solid performance at the Sinter open
pit resulted to higher than forecast mining rate and mill
throughput. The accelerated mining rate resulted in the early
depletion of the Sinter pit and in lower than forecast mill
throughput in the third quarter of 2021
- Production from the Sinter deposit has moved to underground and
the development is progressing according to plan. The paste fill
project, started in May 2021, is
expected to be ready for the fourth quarter of 2021 at which point
Sinter is expected to achieve its full production capacity
- With the ongoing rehabilitation work at the Cerro Colorado zone, two high grade stopes
were mined in the third quarter of 2021 and contributed to the
higher than forecast gold production for the quarter
Project Highlights
- At the Cubiro deposit, the ramp development at 293 metres was
ahead of schedule in the third quarter 2021. The permanent
powerline and waterline construction are under way and expected to
be completed in late October 2021.
The underground ventilation and pumping circuit upgrades continued
in step with the advance of the pre-production development. Once
completed, the Cubiro project is expected to provide additional
production flexibility to the Pinos
Altos operations
- At Reyna de Plata, site
preparation activities were approximately 45% complete at the end
of the third quarter of 2021. The open pit pre-stripping activities
started in the third quarter of 2021
Exploration
- During 2021 at Pinos Altos,
the Company expects to spend $3.9
million for 20,000 metres of exploration drilling that will
include conversion drilling at the Pinos
Altos mine, and further exploration work at Cubiro, the
Pinos Altos Deep project and Reyna
East
- Exploration results for the Pinos
Altos mine are expected to be reported in a Company News
Release on November 2, 2021.
Creston Mascota – Residual Leaching to Continue Through
Year-End 2021; Closure Activities Progressing as Planned
The Creston Mascota heap leach open pit mine operated as a
satellite operation to the Pinos
Altos mine from late 2010 until open pit ore was depleted
during the third quarter of 2020; residual gold leaching is now
expected to continue into the third quarter of 2021.
Creston Mascota
Mine – Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
|
—
|
|
188
|
Tonnes of ore
processed per day
|
|
—
|
|
2,043
|
Gold grade
(g/t)
|
|
—
|
|
1.19
|
Gold production
(ounces)
|
|
2,988
|
|
6,567
|
Production costs per
tonne
|
|
$
|
—
|
|
$
|
40
|
Minesite costs per
tonne
|
|
$
|
—
|
|
$
|
40
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
593
|
|
$
|
1,155
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
486
|
|
$
|
771
|
With production coming only from residual leaching since the
start of 2021, gold production decreased in the third quarter of
2021 when compared to the prior-year period. No ore was
stacked on the heap leach and thus no production costs per tonne or
minesite costs per tonne are reported. Production in the
third quarter of 2021 was higher than anticipated as more solution
was processed due to the rainy season. The Company believes
there is potential to recover additional ounces in the fourth
quarter of 2021.
In the third quarter of 2021, production costs per ounce
decreased when compared to the prior-year period primarily due to
lower overall costs as only residual heap leach and site
administration costs remain. Total cash costs per ounce in
the third quarter of 2021 decreased when compared to the prior-year
period due to the reasons described above and higher by-product
revenues from higher realized silver prices.
Creston Mascota
Mine – Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
|
—
|
|
526
|
Tonnes of ore
processed per day
|
|
—
|
|
1,920
|
Gold grade
(g/t)
|
|
—
|
|
2.00
|
Gold production
(ounces)
|
|
10,468
|
|
34,397
|
Production costs per
tonne
|
|
$
|
—
|
|
$
|
55
|
Minesite costs per
tonne
|
|
$
|
—
|
|
$
|
54
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
592
|
|
$
|
844
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
322
|
|
$
|
565
|
With production coming only from residual leaching since the
start of 2021, gold production decreased in the first nine months
of 2021 when compared to the prior-year period. No ore was
stacked on the heap leach and thus no production costs per tonne or
minesite costs per tonne are reported.
In the first nine months of 2021, production costs per ounce
decreased when compared to the prior-year period primarily due to
lower overall costs as only residual heap leach and site
administration costs remain. Total cash costs per ounce in
the first nine months of 2021 decreased when compared to the
prior-year period due to the reasons described above.
In the third quarter of 2021, the Creston Mascota mine
received the Silver Helmet award by the Mexican Chamber of
Mines and was recognized as the "2020 Safest Mine in
Mexico" in its category.
The major closure activities (smoothing of slopes and
re-vegetation of waste rock storage) continue to progress according
to plan for 2021. The long-term analysis and modelling of the
heap leach water management is approximately 80% complete.
La India – Water Levels at
Maximum Capacity Post Rainy Season; Leach Kinetics Expected to
Improve Through the Fourth Quarter of 2021
The 100% owned La India mine in Sonora, Mexico, located approximately 70
kilometres northwest of the Company's Pinos Altos mine, achieved commercial
production in February 2014.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
|
1,233
|
|
1,559
|
Tonnes of ore
processed per day
|
|
13,402
|
|
16,946
|
Gold grade
(g/t)
|
|
0.62
|
|
0.72
|
Gold production
(ounces)
|
|
17,124
|
|
22,776
|
Production costs per
tonne
|
|
$
|
13
|
|
$
|
10
|
Minesite costs per
tonne
|
|
$
|
13
|
|
$
|
11
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
931
|
|
$
|
707
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
971
|
|
$
|
740
|
Gold production in the third quarter of 2021 decreased when
compared to the prior-year period primarily due to the slower than
expected re-start and ramp up of the heap leach kinetics following
the onset of the rainy season early in the third quarter of
2021.
Production costs per tonne in the third quarter of 2021
increased when compared to the prior-year period primarily due to
higher cement and cyanide consumption related to the high clay
content of the ore, partially offset by adjustments to the heap
leach ore inventory and lower capitalized deferred stripping.
Production costs per ounce in the third quarter of 2021 increased
when compared to the prior-year period due to the higher production
costs per tonne for the reasons described above and lower gold
grades.
Minesite costs per tonne in the third quarter of 2021 increased
when compared to the prior-year period primarily due to reasons
described above. Total cash costs per ounce in the third
quarter of 2021 increased when compared to the prior-year period
due to higher minesite costs per tonne, lower gold grades and lower
by-product revenues from lower silver volumes.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2021
|
|
September 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
|
4,620
|
|
3,869
|
Tonnes of ore
processed per day
|
|
16,923
|
|
14,120
|
Gold grade
(g/t)
|
|
0.49
|
|
0.72
|
Gold production
(ounces)
|
|
38,869
|
|
62,581
|
Production costs per
tonne
|
|
$
|
8
|
|
$
|
13
|
Minesite costs per
tonne
|
|
$
|
9
|
|
$
|
13
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
992
|
|
$
|
824
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,001
|
|
$
|
779
|
Gold production in the first nine months of 2021 decreased when
compared to the prior-year period primarily due to reduced
irrigation of the heap leach starting in March 2021 due to low local water levels, a slow
ramp-up of the heap leach kinetics following the onset of the rainy
season in July 2021 and lower grades,
partially offset by higher ore stacking (in the prior-year period,
the operations were suspended from April 2,
2020 to May 18, 2020 as
required by the Decree).
Production costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach from March to June 2021 and by higher stacking rates.
Production costs per ounce in the first nine months of 2021
increased when compared to the prior-year period due to lower gold
grades, partially offset by the lower production costs per tonne
for the reasons described above.
Minesite costs per tonne in the first nine months of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach from March to June 2021 and by higher stacking rates.
Total cash costs per ounce in the first nine months of 2021
increased when compared to the prior-year period due to lower gold
production partially offset by lower minesite costs per tonne for
the reasons described above.
Operational Highlights
- In the third quarter of 2021, a relatively strong rainy season
and the upgraded water pumping system helped to rebuild the water
reserves to maximum capacity. The water inventory is expected to be
sufficient to supply the operation with water until the next rainy
season in mid-2022
- With the onset of the rainy season in June 2021, irrigation of the fresh ore stacked in
the first six months of 2021 was initiated. The percolation was
slower than expected and resulted in lower gold production than
forecast for the third quarter of 2021. High clay content in the
ore appears to have affected the leach kinetics resulting in low
permeability in some areas
- An action plan to improve the leach kinetics has been
initiated. Plans include an increase in cyanide concentration in
the ore affected by the water shortage, continued testing of the
agglomeration process to establish the optimum cement addition to
improve permeability and geophysical studies to identify areas with
low permeability. With the implementation of the recommendations,
the leach kinetics are expected to improve through the fourth
quarter of 2021
Project Highlights
- The La India heap leach pad construction phase III (occupying
the now exhausted North Zone pit) was slightly delayed in the third
quarter of 2021 from lower than anticipated performance on
earthworks and on the installation of the geo-membrane due to heavy
rains. The project was essentially complete in late October 2021 with only minor work remaining
- El Realito road construction (3.7 kilometres) is underway with
2.5 kilometres fully completed and 1.2 kilometres completed for
access. Pre-stripping activities started in mid-August 2021 according to plan. The
construction of the haulage road is expected to be completed by
year-end
Exploration
- At the La India mine property in 2021, the Company expects to
spend $4.0 million for 20,000 metres
of drilling to attempt to grow and infill the Chipriona
polymetallic sulphide deposit and investigate other near-surface
sulphide and oxide targets
Exploration results for the La India mine are expected to be
reported in a Company News Release on November 2, 2021.
Santa Gertrudis – 2021
Exploration Program Focused on Increasing Mineral Resources and
Targeting New Discoveries
Agnico Eagle acquired its 100% interest in the Santa Gertrudis gold property in November
2017. The 44,145-hectare property is located approximately
180 kilometres north of Hermosillo
in Sonora, Mexico.
The property was the site of historic heap-leach operations that
produced approximately 565,000 ounces of gold at a grade of 2.1 g/t
gold between 1991 and 2000. The property has substantial
surface infrastructure, including pre-stripped pits, haul roads,
water sources and several buildings.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated July 8, 2021.
Exploration is ongoing at Santa
Gertrudis with $11 million
budgeted for 30,000 metres of drilling in 2021, focused on
expanding the mineral resources, testing new targets and continuing
metallurgical studies. The mineral resource estimate for the
project is expected to be updated for the year-end of 2021.
Exploration results for the Santa
Gertrudis project are expected to be reported in a Company
News Release on November 2, 2021.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company, producing
precious metals from operations in Canada, Finland and Mexico. It has a pipeline of high-quality
exploration and development projects in these countries as well as
in the United States and
Colombia. Agnico Eagle is a
partner of choice within the mining industry, recognized globally
for its leading environmental, social and governance
practices. The Company was founded in 1957 and has
consistently created value for its shareholders, declaring a cash
dividend every year since 1983.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including "total
cash costs per ounce", "all-in sustaining costs per ounce",
"minesite costs per tonne", "adjusted net income", and "operating
margin" that are not standardized measures under IFRS. These
measures may not be comparable to similar measures reported by
other gold mining companies. For a reconciliation of these
measures to the most directly comparable financial information
reported in the consolidated financial statements prepared in
accordance with IFRS, other than adjusted net income, see
"Reconciliation of Non-GAAP Financial Performance Measures"
below.
The total cash costs per ounce of gold produced is reported on
both a by-product basis (deducting by-product metal revenues from
production costs) and co-product basis (without deducting
by-product metal revenues). The total cash costs per ounce of
gold produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income (loss) for by-product revenues, inventory production costs,
smelting, refining and marketing charges and other adjustments, and
then dividing by the number of ounces of gold produced. The
total cash costs per ounce of gold produced on a co-product basis
is calculated in the same manner as the total cash costs per ounce
of gold produced on a by-product basis, except that no adjustment
is made for by-product metal revenues. Accordingly, the
calculation of total cash costs per ounce of gold produced on a
co-product basis does not reflect a reduction in production costs
or smelting, refining and marketing charges associated with the
production and sale of by-product metals. The total cash
costs per ounce of gold produced is intended to provide information
about the cash-generating capabilities of the Company's mining
operations. Management also uses this measure to monitor the
performance of the Company's mining operations. As market
prices for gold are quoted on a per ounce basis, using the total
cash costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash-generating capabilities
at various gold prices.
AISC per ounce of gold produced on a by-product basis are
calculated as the aggregate of total cash costs on a by-product
basis, sustaining capital expenditures (including capitalized
exploration), general and administrative expenses (including stock
options), lease payments related to sustaining assets and
reclamation expenses, and then dividing by the number of ounces of
gold produced. The AISC per ounce of gold produced on a
co-product basis is calculated in the same manner as the AISC per
ounce of gold produced on a by-product basis, except that the total
cash costs on a co-product basis are used, meaning no adjustment is
made for by-product metal revenues. AISC per ounce is used to
show the full cost of gold production from current
operations. Management is aware that these per ounce measures
of performance can be affected by fluctuations in foreign exchange
rates and, in the case of total cash costs per ounce and AISC of
gold produced on a by-product basis, by-product metal prices.
Management compensates for these inherent limitations by using
these measures in conjunction with minesite costs per tonne
(discussed below) as well as other data prepared in accordance with
IFRS.
The World Gold Council ("WGC") is a non-regulatory market
development organization for the gold industry. Although the
WGC is not a mining industry regulatory organization, it has worked
closely with its member companies to develop relevant non-GAAP
measures. The Company follows the guidance on all-in
sustaining costs released by the WGC in November 2018.
Adoption of the AISC metric is voluntary and, notwithstanding the
Company's adoption of the WGC's guidance, AISC per ounce of gold
produced reported by the Company may not be comparable to data
reported by other gold mining companies. The Company believes
that this measure provides helpful information about operating
performance. However, this non-GAAP measure should be
considered together with other data prepared in accordance with
IFRS as it is not necessarily indicative of operating costs or cash
flow measures prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income (loss)
for inventory production costs and other adjustments, and then
dividing by tonnage of ore processed. As the total cash costs
per ounce of gold produced can be affected by fluctuations in
by–product metal prices and foreign exchange rates, management
believes that minesite costs per tonne provide additional
information regarding the performance of mining operations,
eliminating the impact of varying production levels.
Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated
based on the net realizable value of each tonne mined, in order to
be economically viable the estimated revenue on a per tonne basis
must be in excess of the minesite costs per tonne. Management
is aware that this per tonne measure of performance can be impacted
by fluctuations in processing levels and compensates for this
inherent limitation by using this measure in conjunction with
production costs prepared in accordance with IFRS.
Adjusted net income is calculated by adjusting the net income as
recorded in the consolidated statements of income (loss) for
non-recurring, unusual and other items, including foreign currency
translation gains and losses, mark to market adjustments,
non-recurring gains and losses and unrealized gains and losses on
financial instruments. Management uses adjusted net income to
evaluate the underlying operating performance of the Company and to
assist with the planning and forecasting of future operating
results. Management believes that adjusted net income is a
useful measure of performance because foreign currency translation
gains and losses, mark-to-market adjustments, non-recurring gains
and losses and unrealized gains and losses on financial instruments
do not reflect the underlying operating performance of the Company
and may not be indicative of future operating results.
Operating margin is not a recognized measure under IFRS and this
data may not be comparable to data presented by other gold
producers. This measure is calculated by excluding the
following from net income (loss) as recorded in the consolidated
financial statements: Income and mining taxes expense; other
expenses (income); foreign currency translation (gain) loss; gain
(loss) on derivative financial instruments; finance costs; general
and administrative expenses; amortization of property, plant and
mine development; exploration and corporate development expenses;
and impairment losses (reversals). The Company believes that
operating margin is a useful measure that represents the operating
performance of its mines associated with the ongoing production and
sale of gold and by-product metals. Management uses this
measure internally to plan and forecast future operating
results. This measure is intended to provide investors with
additional information about the Company's underlying operating
results and should be evaluated in conjunction with other data
prepared in accordance with IFRS.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating foreign exchange rates and
metal prices. This news release also contains information as
to estimated future total cash costs per ounce, AISC per ounce and
minesite costs per tonne. The estimates are based upon the
total cash costs per ounce, AISC per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at its mines
and projects and, consistent with the reconciliation of these
actual costs referred to above, do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time as each project is developed and
mined. It is therefore not practicable to reconcile these
forward-looking non-GAAP financial measures to the most comparable
IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
October 27, 2021. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". All statements, other than
statements of historical fact, that address circumstances, events,
activities or developments that could, or may or will occur are
forward looking statements. When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include without limitation:
statements regarding the impact of the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19 on the Company's
future operations, including its employees and overall business;
the Company's forward-looking guidance, including metal production,
estimated ore grades, recovery rates, project timelines, drilling
results, life of mine estimates, total cash costs per ounce, AISC
per ounce, minesite costs per tonne, other expenses and cash flows;
statements relating to the expected outcomes of the Merger, the
ability of the Company and Kirkland Lake
Gold to satisfy the conditions to complete the Merger on the
terms and in the timing described, or at all; statements concerning
the composition of the shareholders of new Agnico Eagle; statements
concerning the ability of the Company to issue securities pursuant
to the Merger; statements concerning the continuing name of the
combined company; statements concerning the anticipated timing of
mailing of the joint management information circular, the holding
of the Company's and the Kirkland Lake Gold's meeting of
shareholders and the closing of the Merger; and statements
concerning the timing and receipt of shareholder, court, stock
exchange, and regulatory approvals of the Merger; the estimated
timing and conclusions of technical studies and evaluations; the
methods by which ore will be extracted or processed; statements
concerning the Company's expansion plans at Kittila, Meliadine
Phase 2, the Amaruq underground project and the Odyssey project,
including the timing, funding, completion and commissioning thereof
and production therefrom; statements about the Company's plans at
the Hope Bay mine; statements concerning other expansion projects,
recovery rates, mill throughput, optimization and projected
exploration, including costs and other estimates upon which such
projections are based; statements regarding timing and amounts of
capital expenditures, other expenditures and other cash needs, and
expectations as to the funding thereof; estimates of future mineral
reserves, mineral resources, mineral production and sales; 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; statements regarding anticipated cost
inflation and its effect on the Company's costs; estimates of
mineral reserves and mineral resources and the effect of drill
results on future mineral reserves and mineral resources;
statements regarding the Company's ability to obtain the necessary
permits and authorizations in connection with its proposed or
current exploration, development and mining operations and the
anticipated timing thereof; statements regarding anticipated future
exploration; the anticipated timing of events with respect to the
Company's mine sites; statements regarding the sufficiency of the
Company's cash resources; statements regarding future activity with
respect to the Company's unsecured revolving bank credit facility;
future dividend amounts and payment dates; and statements regarding
anticipated trends with respect to the Company's operations,
exploration and the funding thereof. Such statements reflect
the Company's views as at the date of this news release and are
subject to certain risks, uncertainties and assumptions, and undue
reliance should not be placed on such statements.
Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by Agnico
Eagle as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The material factors and assumptions used in
the preparation of the forward looking statements contained herein,
which may prove to be incorrect, include, but are not limited to,
the assumptions set forth herein and in management's discussion and
analysis ("MD&A") and the Company's Annual Information Form
("AIF") for the year ended December 31,
2020 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2020 ("Form 40-F") filed
with the U.S. Securities and Exchange Commission (the "SEC") as
well as: that governments, the Company or others do not take
additional measures in response to the COVID-19 pandemic or
otherwise that, individually or in the aggregate, materially affect
the Company's ability to operate its business; that cautionary
measures taken in connection with the COVID-19 pandemic do not
affect productivity; that measures taken relating to, or other
effects of, the COVID-19 pandemic do not affect the Company's
ability to obtain necessary supplies and deliver them to its mine
sites; that the time required to prepare and mail shareholder
meeting materials, including the joint management information
circular is in line with the Company's expectations; that the
parties receive, in a timely manner, the necessary shareholder,
court, stock exchange and regulatory approvals of the Merger; and
that the parties can satisfy, in a timely manner, the other
conditions contained in the Merger Agreement; that there are no
significant disruptions affecting operations; that production,
permitting, development, expansion and the ramp up of operations at
each of Agnico Eagle's properties proceeds on a basis consistent
with current expectations and plans; that the relevant metal
prices, foreign exchange rates and prices for key mining and
construction supplies will be consistent with Agnico Eagle's
expectations; that Agnico Eagle's current estimates of mineral
reserves, mineral resources, mineral grades and metal recovery are
accurate; that there are no material delays in the timing for
completion of ongoing growth projects; that seismic activity at the
Company's operations at LaRonde, Goldex and other properties is as
expected by the Company; that the Company's current plans to
optimize production are successful; and that there are no material
variations in the current tax and regulatory environment.
Many factors, known and unknown, could cause the actual results to
be materially different from those expressed or implied by such
forward looking statements. Such risks include, but are not
limited to: the extent and manner to which COVID-19, and measures
taken by governments, the Company or others to attempt to reduce
the spread of COVID-19, may affect the Company, whether directly or
through effects on employee health, workforce productivity and
availability (including the ability to transport personnel to the
Meadowbank Complex, Meliadine mine and the Hope Bay mine which
operate as fly-in/fly-out camps), travel restrictions, contractor
availability, supply availability, ability to sell or deliver gold
dore bars or concentrate, availability of insurance and the cost
thereof, the ability to procure inputs required for the Company's
operations and projects or other aspects of the Company's business;
uncertainties with respect to the effect on the global economy
associated with the COVID-19 pandemic and measures taken to reduce
the spread of COVID-19, any of which could negatively affect
financial markets, including the trading price of the Company's
shares and the price of gold, and could adversely affect the
Company's ability to raise capital; that the Merger may not be
completed in a timely basis, or at all; the conditions contained in
the Merger Agreement may not be satisfied; failure to obtain
necessary shareholder, court, stock exchange or regulatory
approvals of the Merger; the emergence of a superior proposal in
respect of either party; the extent and manner to which COVID-19,
and measures taken by governments, the Company, Kirkland Lake Gold or others to attempt to
reduce the spread of COVID-19, may affect Kirkland Lake Gold or the Merger; the ability to
realize the anticipated benefits of the Merger or implementing the
business plan for new Agnico Eagle, including as a result of a
delay in completing the Merger or difficulty in integrating the
businesses of the companies involved (including the retention of
key employees); and general business and economic conditions; the
volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, project
development, capital expenditures and other costs; foreign exchange
rate fluctuations; financing of additional capital requirements;
cost of exploration and development programs; seismic activity at
the Company's operations, including the LaRonde Complex and Goldex
mine; mining risks; community protests, including by First Nations
groups; risks associated with foreign operations; governmental and
environmental regulation; the volatility of the Company's stock
price; and risks associated with the Company's currency, fuel and
by-product metal derivative strategies. For a more detailed
discussion of such risks and other factors that may affect the
Company's ability to achieve the expectations set forth in the
forward-looking statements contained in this news release, see the
AIF and MD&A filed on SEDAR at www.sedar.com and included in
the Form 40-F filed on EDGAR at www.sec.gov, as well as the
Company's other filings with the Canadian securities regulators and
the SEC. Other than as required by law, the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI
43-101"). These standards are similar to those used by SEC
Industry Guide No. 7, as interpreted by the SEC staff.
However, the definitions in NI 43-101 differ in certain respects
from those under SEC Industry Guide 7. Accordingly, mineral
reserve and mineral resource information contained in this news
release may not be comparable to similar information disclosed by
United States companies.
Under the SEC's Industry Guide 7, mineralization may not be
classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made.
For United States reporting
purposes, the SEC has adopted amendments to its disclosure rules
(the "SEC Modernization Rules") to modernize the mining property
disclosure requirements for issuers whose securities are registered
with the SEC under the United States Securities Exchange Act of
1934, as amended (the "Exchange Act"), which became effective
February 25, 2019. The SEC
Modernization Rules more closely align the SEC's disclosure
requirements and policies for mining properties with current
industry and global regulatory practices and standards, including
NI 43-101, and replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7. Issuers must begin to comply with the SEC
Modernization Rules in their first fiscal year beginning on or
after January 1, 2021, though
Canadian issuers that report in the
United States using the Multijurisdictional Disclosure
System ("MJDS") may still use NI 43-101 rather than the SEC
Modernization Rules when using the SEC's MJDS registration
statement and annual report forms.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral
resources." In addition, the SEC has amended definitions of
"proven mineral reserves" and "probable mineral reserves" in the
SEC Modernization Rules, with definitions that are substantially
similar to those used in NI 43-101.
United States investors are
cautioned that while the SEC now recognizes "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that any part or all of the
mineral deposits in these categories will ever be converted into a
higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Under Canadian
regulations, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in
limited circumstances. Investors are cautioned not to
assume that any "measured mineral resources", "indicated mineral
resources", or "inferred mineral resources" that the Company
reports in this news release are or will be economically or legally
mineable.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all
of an inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in this
news release are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals
contained in mineral reserves in its calculation of contained
ounces and mineral reserves are not reported as a subset of mineral
resources.
Scientific and Technical Information
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Daniel Paré, P.Eng., Vice-President
Operations – Eastern Canada;
relating to Nunavut operations has
been approved by Dominique Girard, Eng., Senior Vice-President,
Operations – Canada and
Europe; relating to Finland operations has been approved by
Francis Brunet, Eng., Corporate Director, Business Strategy;
relating to Southern Business operations has been approved by Marc
Legault, Eng., Senior Vice-President, Operations – U.S.A. & Latin
America; and relating to exploration has been approved by
Guy Gosselin, Eng. and P.Geo., Senior Vice-President, Exploration,
each of whom is a "Qualified Person" for the purposes of NI
43-101.
The scientific and technical information relating to Agnico
Eagle's mineral reserves and mineral resources contained herein
(other than the Canadian Malartic mine) has been approved by
Dyane Duquette, P.Geo., Corporate
Director, Reserves Development of the Company; relating to mineral
reserves and mineral resources at the Canadian Malartic mine and
other Partnership projects such as the Odyssey project (including
East Gouldie, East Malartic and
Odyssey), has been approved by Sylvie Lampron, Eng., Senior Project
Mine Engineer at Canadian Malartic
Corporation (for engineering) and Pascal Lehouiller, P.Geo., Senior Resource
Geologist at Canadian Malartic
Corporation (for geology), each of whom is a "Qualified
Person" for the purposes of NI 43-101.
Assumptions used for the December 31,
2020 mineral reserves estimate at all mines and advanced
projects reported by the Company
|
Metal
prices
|
Exchange
rates
|
|
Gold (US$/oz)
|
Silver (US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
Peso per
US$1.00
|
US$ per
€1.00
|
Operations and
projects
|
$1,250
|
$17
|
$2.75
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hammond
Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper
Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors, together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the Company's material
mineral projects including information regarding data verification,
key assumptions, parameters and methods used to estimate mineral
reserves and mineral resources and the risks that could
materially affect the development of the mineral reserves and
mineral resources required by sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d) of NI 43-101 can be found in the Company's AIF
and MD&A filed on SEDAR each of which forms a part of the
Company's Form 40-F filed with the SEC on EDGAR and in the
following technical reports filed on SEDAR in respect of the
Company's material mineral properties: 2005 LaRonde Mineral
Resource & Mineral Reserve Estimate Agnico-Eagle Mines Ltd.
LaRonde Division (March 23, 2005); NI 43-101 Technical Report
Canadian Malartic Mine, Québec, Canada (March 25, 2021); Technical
Report on the December 31, 2009, Mineral Resource and Mineral
Reserve Estimate and the Suuri Extension Project, Kittila Mine,
Finland (March 4, 2010); Technical Report on the Mineral Resources
and Mineral Reserves at Meadowbank Gold Complex including the
Amaruq Satellite Mine Development, Nunavut, Canada as at December
31, 2017 (February 14, 2018); and the Updated Technical Report on
the Meliadine Gold Project, Nunavut, Canada (February 11,
2015).
APPENDIX – FINANCIALS
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Operating
margin(i) by mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
125,770
|
|
$
|
144,364
|
|
$
|
335,115
|
|
$
|
250,512
|
LaRonde Zone 5
mine
|
19,449
|
|
21,522
|
|
47,299
|
|
43,380
|
Goldex mine
|
29,421
|
|
36,350
|
|
106,041
|
|
94,350
|
Meadowbank
Complex
|
52,087
|
|
46,032
|
|
157,799
|
|
37,423
|
Meliadine
mine
|
84,671
|
|
109,313
|
|
283,410
|
|
215,746
|
Hope Bay
mine
|
11,633
|
|
—
|
|
37,259
|
|
—
|
Canadian Malartic
mine(ii)
|
93,439
|
|
76,673
|
|
306,766
|
|
179,221
|
Kittila
mine
|
57,362
|
|
62,807
|
|
167,503
|
|
163,806
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
31,971
|
|
37,063
|
|
90,302
|
|
79,705
|
Creston Mascota
mine
|
4,186
|
|
9,279
|
|
16,991
|
|
38,101
|
La India
mine
|
11,989
|
|
24,406
|
|
34,633
|
|
58,122
|
Total operating
margin(i)
|
521,978
|
|
567,809
|
|
1,583,118
|
|
1,160,366
|
Amortization of
property, plant and mine development
|
192,392
|
|
173,173
|
|
548,816
|
|
456,147
|
Exploration,
corporate and other
|
129,148
|
|
61,947
|
|
322,029
|
|
230,648
|
Income before income
and mining taxes
|
200,438
|
|
332,689
|
|
712,273
|
|
473,571
|
Income and mining
taxes expense
|
85,956
|
|
110,035
|
|
272,082
|
|
167,181
|
Net income for the
period
|
$
|
114,482
|
|
$
|
222,654
|
|
$
|
440,191
|
|
$
|
306,390
|
Net income per
share — basic
|
$
|
0.47
|
|
$
|
0.92
|
|
$
|
1.81
|
|
$
|
1.27
|
Net income per
share — diluted
|
$
|
0.47
|
|
$
|
0.91
|
|
$
|
1.80
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
290,963
|
|
$
|
462,538
|
|
$
|
1,054,271
|
|
$
|
788,544
|
Cash used in
investing activities
|
$
|
(262,000)
|
|
$
|
(205,893)
|
|
$
|
(987,481)
|
|
$
|
(561,797)
|
Cash used in
financing activities
|
$
|
(62,404)
|
|
$
|
(268,802)
|
|
$
|
(226,699)
|
|
$
|
(228,390)
|
|
|
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,787
|
|
$
|
1,911
|
|
$
|
1,794
|
|
$
|
1,753
|
Silver
(per ounce)
|
$
|
23.54
|
|
$
|
25.35
|
|
$
|
25.63
|
|
$
|
19.21
|
Zinc
(per tonne)
|
$
|
2,967
|
|
$
|
2,303
|
|
$
|
2,852
|
|
$
|
2,241
|
Copper
(per tonne)
|
$
|
9,031
|
|
$
|
6,972
|
|
$
|
9,623
|
|
$
|
5,855
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
88,795
|
|
81,199
|
|
244,865
|
|
198,688
|
LaRonde Zone 5
mine
|
17,952
|
|
18,981
|
|
52,483
|
|
45,496
|
Goldex mine
|
28,823
|
|
31,008
|
|
98,132
|
|
88,033
|
Meadowbank
Complex
|
89,706
|
|
74,921
|
|
255,570
|
|
140,679
|
Meliadine
mine
|
97,024
|
|
96,757
|
|
289,844
|
|
226,107
|
Hope Bay
mine
|
17,957
|
|
—
|
|
55,524
|
|
—
|
Canadian Malartic
mine(ii)
|
86,803
|
|
76,398
|
|
268,459
|
|
197,946
|
Kittila
mine
|
62,089
|
|
53,149
|
|
176,068
|
|
163,069
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
32,402
|
|
30,937
|
|
94,191
|
|
78,127
|
Creston Mascota
mine
|
2,988
|
|
6,567
|
|
10,468
|
|
34,397
|
La India
mine
|
17,124
|
|
22,776
|
|
38,869
|
|
62,581
|
Total gold
(ounces)
|
541,663
|
|
492,693
|
|
1,584,473
|
|
1,235,123
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
171
|
|
174
|
|
573
|
|
459
|
LaRonde Zone 5
mine
|
3
|
|
2
|
|
9
|
|
7
|
Goldex mine
|
—
|
|
—
|
|
1
|
|
1
|
Meadowbank
Complex
|
25
|
|
18
|
|
72
|
|
40
|
Meliadine
mine
|
7
|
|
7
|
|
22
|
|
19
|
Hope Bay
mine
|
—
|
|
—
|
|
2
|
|
—
|
Canadian Malartic
mine(ii)
|
70
|
|
81
|
|
221
|
|
260
|
Kittila
mine
|
3
|
|
3
|
|
8
|
|
9
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
287
|
|
505
|
|
967
|
|
1,234
|
Creston Mascota
mine
|
22
|
|
94
|
|
90
|
|
523
|
La India
mine
|
6
|
|
14
|
|
29
|
|
51
|
Total silver
(thousands of ounces)
|
594
|
|
898
|
|
1,994
|
|
2,603
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,826
|
|
2,198
|
|
7,429
|
|
3,275
|
Copper
(tonnes)
|
825
|
|
723
|
|
2,356
|
|
2,128
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Payable metal
sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
95,947
|
|
105,457
|
|
258,076
|
|
200,013
|
LaRonde Zone 5
mine
|
19,256
|
|
17,835
|
|
49,738
|
|
43,805
|
Goldex mine
|
29,534
|
|
30,421
|
|
98,885
|
|
87,789
|
Meadowbank
Complex
|
91,474
|
|
72,390
|
|
251,670
|
|
140,083
|
Meliadine
mine
|
82,005
|
|
92,775
|
|
274,517
|
|
227,884
|
Hope Bay
mine
|
19,230
|
|
—
|
|
57,182
|
|
—
|
Canadian Malartic
mine(ii)(iv)
|
81,511
|
|
75,568
|
|
254,439
|
|
187,852
|
Kittila
mine
|
60,820
|
|
56,848
|
|
175,207
|
|
170,333
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
34,920
|
|
30,470
|
|
97,205
|
|
82,128
|
Creston Mascota
mine
|
3,065
|
|
7,573
|
|
11,299
|
|
34,465
|
La India
mine
|
15,675
|
|
20,958
|
|
40,248
|
|
61,840
|
Total gold
(ounces)
|
533,437
|
|
510,295
|
|
1,568,466
|
|
1,236,192
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
176
|
|
176
|
|
568
|
|
472
|
LaRonde Zone 5
mine
|
2
|
|
2
|
|
8
|
|
7
|
Goldex mine
|
—
|
|
—
|
|
1
|
|
1
|
Meadowbank
Complex
|
30
|
|
9
|
|
75
|
|
33
|
Meliadine
mine
|
7
|
|
4
|
|
24
|
|
17
|
Canadian Malartic
mine(ii)(iv)
|
66
|
|
70
|
|
201
|
|
240
|
Kittila
mine
|
2
|
|
4
|
|
7
|
|
9
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
305
|
|
489
|
|
997
|
|
1,307
|
Creston Mascota
mine
|
23
|
|
101
|
|
114
|
|
528
|
La India
mine
|
8
|
|
21
|
|
34
|
|
57
|
Total silver
(thousands of ounces):
|
619
|
|
876
|
|
2,029
|
|
2,671
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,744
|
|
1,570
|
|
8,279
|
|
3,403
|
Copper
(tonnes)
|
833
|
|
739
|
|
2,365
|
|
2,121
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — co-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
614
|
|
$
|
619
|
|
$
|
676
|
|
$
|
658
|
LaRonde Zone 5
mine
|
797
|
|
683
|
|
793
|
|
750
|
Goldex mine
|
762
|
|
702
|
|
686
|
|
653
|
Meadowbank
Complex(vi)
|
1,222
|
|
1,263
|
|
1,147
|
|
1,516
|
Meliadine
mine(vii)(viii)
|
636
|
|
697
|
|
629
|
|
823
|
Hope Bay
mine
|
1,333
|
|
—
|
|
1,053
|
|
—
|
Canadian Malartic
mine(ii)(ix)
|
725
|
|
803
|
|
680
|
|
784
|
Kittila
mine
|
827
|
|
814
|
|
844
|
|
777
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,059
|
|
1,103
|
|
1,108
|
|
1,065
|
Creston Mascota
mine
|
636
|
|
1,175
|
|
568
|
|
841
|
La India
mine
|
977
|
|
759
|
|
1,024
|
|
797
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
839
|
|
$
|
835
|
|
$
|
816
|
|
$
|
864
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — by-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
390
|
|
$
|
428
|
|
$
|
436
|
|
$
|
508
|
LaRonde Zone 5
mine
|
794
|
|
681
|
|
789
|
|
747
|
Goldex mine
|
762
|
|
702
|
|
686
|
|
653
|
Meadowbank
Complex(vi)
|
1,214
|
|
1,260
|
|
1,139
|
|
1,511
|
Meliadine
mine(vii)(viii)
|
634
|
|
695
|
|
626
|
|
822
|
Hope Bay
mine
|
1,333
|
|
—
|
|
1,053
|
|
—
|
Canadian Malartic
mine(ii)(ix)
|
705
|
|
772
|
|
659
|
|
756
|
Kittila
mine
|
826
|
|
813
|
|
843
|
|
776
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
854
|
|
677
|
|
847
|
|
740
|
Creston Mascota
mine
|
486
|
|
771
|
|
322
|
|
565
|
La India
mine
|
971
|
|
740
|
|
1,001
|
|
779
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
784
|
|
$
|
764
|
|
$
|
755
|
|
$
|
805
|
|
Notes:
|
|
(i) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
|
(ii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
|
(iii) Payable
production (a non-GAAP non-financial performance measure) is
the quantity of mineral produced during a period contained in
products that are or will be sold by the Company, whether such
products are sold during the period or held as inventories at the
end of the period. Payable production for the nine months
ended September 30, 2021 includes 348 ounces of gold from the
Amaruq underground project at the Meadowbank Complex which were
produced during the period, as commercial production at the Amaruq
underground project has not yet been achieved. Payable production
for the three and nine months ended September 30, 2021
includes 6,881 and 24,057 ounces of gold from the Tiriganiaq open
pit deposit at the Meliadine mine, respectively, which were
produced prior to the achievement of commercial production at the
Tiriganiaq open pit deposit on August 15, 2021. Payable production
for the three and nine months ended September 30, 2020 includes
1,982 ounces of gold from the Tiriganiaq open pit deposit at the
Meliadine mine, which were produced prior to the achievement of
commercial production at the Tiriganiaq open pit deposit. Payable
production for the three and nine months ended September 30,
2020 includes 13,305 and 18,930 ounces of gold from the Canadian
Malartic mine, respectively, which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020.
|
|
(iv) The Canadian
Malartic mine's payable metal sold excludes the 5.0% net smelter
return royalty granted to Osisko Gold Royalties Ltd.
|
|
(v) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's calculation and
use of total cash cost per ounce of gold produced.
|
|
(vi) The Meadowbank
Complex's cost calculations per ounce of gold produced for the nine
months ended September 30, 2021 excludes 348 ounces of payable
gold production, which were produced during this period, as
commercial production at the Amaruq underground project has not yet
been achieved.
|
|
(vii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
and nine months ended September 30, 2021 exclude 6,881 and
24,057 ounces of payable gold production, respectively, which were
produced prior to the achievement of commercial production at the
Tiriganiaq open pit deposit on August 15, 2021.
|
|
(viii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
and nine months ended September 30, 2020 exclude 1,982 ounces
of payable gold production, which were produced prior to the
achievement of commercial production at the Tiriganiaq open pit
deposit on August 15, 2021.
|
|
(ix) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three and nine months ended September 30, 2020 exclude
13,305 and 18,930 ounces of payable gold production, respectively,
which were produced prior to the achievement of commercial
production at the Barnat deposit on September 30, 2020.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
(thousands of
United States dollars, except share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
As
at
|
|
As
at
|
|
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
241,512
|
|
$
|
402,527
|
Short-term
investments
|
|
2,112
|
|
3,936
|
Trade
receivables
|
|
12,898
|
|
11,867
|
Inventories
|
|
878,374
|
|
630,474
|
Income taxes
recoverable
|
|
12,791
|
|
3,656
|
Fair value of
derivative financial instruments
|
|
16,311
|
|
35,516
|
Other current
assets
|
|
246,770
|
|
159,212
|
Total current
assets
|
|
1,410,768
|
|
1,247,188
|
Non-current
assets:
|
|
|
|
|
Goodwill
|
|
407,792
|
|
407,792
|
Property, plant and
mine development
|
|
7,606,293
|
|
7,325,418
|
Investments
|
|
291,529
|
|
375,103
|
Other
assets
|
|
335,062
|
|
259,254
|
Total
assets
|
|
$
|
10,051,444
|
|
$
|
9,614,755
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
512,130
|
|
$
|
363,801
|
Reclamation
provision
|
|
22,102
|
|
15,270
|
Interest
payable
|
|
25,780
|
|
12,184
|
Income taxes
payable
|
|
40,511
|
|
102,687
|
Lease
obligations
|
|
32,339
|
|
20,852
|
Current portion of
long-term debt
|
|
225,000
|
|
—
|
Fair value of
derivative financial instruments
|
|
26,035
|
|
904
|
Total current
liabilities
|
|
883,897
|
|
515,698
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
|
1,342,127
|
|
1,565,241
|
Lease
obligations
|
|
92,115
|
|
99,423
|
Reclamation
provision
|
|
698,035
|
|
651,783
|
Deferred income and
mining tax liabilities
|
|
1,069,945
|
|
1,036,061
|
Other
liabilities
|
|
70,695
|
|
63,336
|
Total
liabilities
|
|
4,156,814
|
|
3,931,542
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Common
shares:
|
|
|
|
|
Outstanding — 244,865,297 common
shares issued, less 544,147 shares held in trust
|
|
5,828,276
|
|
5,751,479
|
Stock
options
|
|
188,726
|
|
175,640
|
Contributed
surplus
|
|
37,254
|
|
37,254
|
Deficit
|
|
(186,889)
|
|
(366,412)
|
Other
reserves
|
|
27,263
|
|
85,252
|
Total
equity
|
|
5,894,630
|
|
5,683,213
|
Total liabilities and
equity
|
|
$
|
10,051,444
|
|
$
|
9,614,755
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
974,065
|
|
$
|
980,612
|
|
$
|
2,874,777
|
|
$
|
2,209,665
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
Production(i)
|
452,087
|
|
412,803
|
|
1,291,659
|
|
1,049,299
|
Exploration and
corporate development
|
42,141
|
|
30,488
|
|
110,792
|
|
74,468
|
Amortization of
property, plant and mine development
|
192,392
|
|
173,173
|
|
548,816
|
|
456,147
|
General and
administrative
|
31,315
|
|
26,291
|
|
107,573
|
|
82,380
|
Finance
costs
|
22,780
|
|
21,439
|
|
68,209
|
|
74,201
|
Loss (gain) on
derivative financial instruments
|
35,420
|
|
(29,724)
|
|
35,366
|
|
(49,297)
|
Foreign currency
translation (gain) loss
|
(6,478)
|
|
4,321
|
|
(7,116)
|
|
11,489
|
Other
expenses
|
3,970
|
|
9,132
|
|
7,205
|
|
37,407
|
Income before income
and mining taxes
|
200,438
|
|
332,689
|
|
712,273
|
|
473,571
|
Income and mining
taxes expense
|
85,956
|
|
110,035
|
|
272,082
|
|
167,181
|
Net income for the
period
|
$
|
114,482
|
|
$
|
222,654
|
|
$
|
440,191
|
|
$
|
306,390
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
$
|
0.47
|
|
$
|
0.92
|
|
$
|
1.81
|
|
$
|
1.27
|
Net income per share
- diluted
|
$
|
0.47
|
|
$
|
0.91
|
|
$
|
1.80
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
243,932
|
|
242,059
|
|
243,106
|
|
241,152
|
Diluted
|
244,940
|
|
243,867
|
|
244,559
|
|
242,690
|
|
Note:
|
|
(i)
Exclusive of amortization, which is shown separately.
|
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
114,482
|
|
$
|
222,654
|
|
$
|
440,191
|
|
$
|
306,390
|
Add (deduct)
adjusting items:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
192,392
|
|
173,173
|
|
548,816
|
|
456,147
|
Deferred income and
mining taxes
|
51,271
|
|
46,927
|
|
152,460
|
|
75,350
|
Unrealized loss (gain)
on currency and commodity derivatives
|
27,947
|
|
(8,332)
|
|
44,337
|
|
(8,327)
|
Unrealized loss (gain)
on warrants
|
17,851
|
|
(20,854)
|
|
31,440
|
|
(52,682)
|
Stock-based
compensation
|
13,449
|
|
12,194
|
|
45,028
|
|
38,724
|
Foreign currency
translation (gain) loss
|
(6,478)
|
|
4,321
|
|
(7,116)
|
|
11,489
|
Other
|
2,726
|
|
4,298
|
|
5,864
|
|
(2,772)
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
3,386
|
|
(2,457)
|
|
(1,031)
|
|
(847)
|
Income
taxes
|
(2,664)
|
|
32,630
|
|
(70,751)
|
|
12,477
|
Inventories
|
(154,611)
|
|
(51,084)
|
|
(175,284)
|
|
(93,686)
|
Other current
assets
|
(24,570)
|
|
6,567
|
|
(80,376)
|
|
4,437
|
Accounts payable and
accrued liabilities
|
43,341
|
|
30,151
|
|
108,652
|
|
34,265
|
Interest
payable
|
12,441
|
|
12,350
|
|
12,041
|
|
7,579
|
Cash provided by
operating activities
|
290,963
|
|
462,538
|
|
1,054,271
|
|
788,544
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(244,594)
|
|
(195,334)
|
|
(630,786)
|
|
(534,604)
|
Acquisition of TMAC,
net of cash and cash equivalents
|
—
|
|
—
|
|
(185,898)
|
|
—
|
Advance to TMAC to
fund repayment of debt
|
—
|
|
—
|
|
(105,000)
|
|
—
|
Payment to repurchase
the Hope Bay royalty
|
—
|
|
—
|
|
(50,000)
|
|
—
|
Proceeds from sale of
property, plant and mine development
|
507
|
|
354
|
|
1,049
|
|
727
|
Net sales of
short-term investments
|
1,158
|
|
1,255
|
|
1,824
|
|
370
|
Net proceeds from
sale of equity securities and other investments
|
—
|
|
—
|
|
4,173
|
|
8,759
|
Purchases of equity
securities and other investments
|
(19,071)
|
|
(12,168)
|
|
(29,920)
|
|
(37,049)
|
Payments for
financial assets at amortized cost
|
—
|
|
—
|
|
(16,000)
|
|
—
|
Decrease in
restricted cash
|
—
|
|
—
|
|
23,077
|
|
—
|
Cash used in
investing activities
|
(262,000)
|
|
(205,893)
|
|
(987,481)
|
|
(561,797)
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from Credit
Facility
|
110,000
|
|
75,000
|
|
450,000
|
|
1,075,000
|
Repayment of Credit
Facility
|
(110,000)
|
|
(325,000)
|
|
(450,000)
|
|
(1,075,000)
|
Proceeds from Senior
Notes issuance
|
—
|
|
—
|
|
—
|
|
200,000
|
Repayment of Senior
Notes
|
—
|
|
—
|
|
—
|
|
(360,000)
|
Long-term debt
financing costs
|
—
|
|
—
|
|
—
|
|
(1,597)
|
Repayment of lease
obligations
|
(1,823)
|
|
(4,119)
|
|
(17,294)
|
|
(11,598)
|
Dividends
paid
|
(65,586)
|
|
(39,844)
|
|
(205,594)
|
|
(118,407)
|
Repurchase of common
shares for stock-based compensation plans
|
—
|
|
—
|
|
(34,606)
|
|
(35,930)
|
Proceeds on exercise
of stock options
|
319
|
|
21,236
|
|
16,964
|
|
89,289
|
Common shares
issued
|
4,686
|
|
3,925
|
|
13,831
|
|
9,853
|
Cash used in
financing activities
|
(62,404)
|
|
(268,802)
|
|
(226,699)
|
|
(228,390)
|
Effect of exchange
rate changes on cash and cash equivalents
|
(2,717)
|
|
(1,516)
|
|
(1,106)
|
|
(4,370)
|
Net decrease in
cash and cash equivalents during the period
|
(36,158)
|
|
(13,673)
|
|
(161,015)
|
|
(6,013)
|
Cash and cash
equivalents, beginning of period
|
277,670
|
|
329,557
|
|
402,527
|
|
321,897
|
Cash and cash
equivalents, end of period
|
$
|
241,512
|
|
$
|
315,884
|
|
$
|
241,512
|
|
$
|
315,884
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
7,696
|
|
$
|
7,417
|
|
$
|
49,749
|
|
$
|
61,864
|
|
|
|
|
|
|
|
|
|
|
|
|
Income and mining
taxes paid
|
$
|
38,153
|
|
$
|
31,086
|
|
$
|
191,324
|
|
$
|
84,139
|
|
|
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
(thousands of
United States dollars, except where noted)
|
|
Total Production
Costs by Mine
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
(thousands of
United States dollars)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
LaRonde
mine
|
|
$
|
58,842
|
|
$
|
64,983
|
|
$
|
169,990
|
|
$
|
126,970
|
LaRonde Zone 5
mine
|
|
14,871
|
|
12,616
|
|
41,809
|
|
33,754
|
LaRonde
Complex
|
|
73,713
|
|
77,599
|
|
211,799
|
|
160,724
|
Goldex
mine
|
|
23,223
|
|
21,786
|
|
70,997
|
|
58,006
|
Meadowbank
Complex
|
|
111,425
|
|
92,256
|
|
294,786
|
|
210,105
|
Meliadine
mine
|
|
52,729
|
|
66,937
|
|
167,488
|
|
182,523
|
Hope Bay
mine
|
|
22,306
|
|
—
|
|
63,975
|
|
—
|
Canadian Malartic
mine(i)
|
|
62,393
|
|
51,654
|
|
181,319
|
|
137,643
|
Kittila
mine
|
|
51,140
|
|
45,747
|
|
147,744
|
|
132,471
|
Pinos Altos
mine
|
|
37,447
|
|
33,131
|
|
108,790
|
|
87,233
|
Creston Mascota
mine
|
|
1,773
|
|
7,585
|
|
6,199
|
|
29,017
|
La India
mine
|
|
15,938
|
|
16,108
|
|
38,562
|
|
51,577
|
Production costs per
the condensed interim consolidated statements of income
|
|
$
|
452,087
|
|
$
|
412,803
|
|
$
|
1,291,659
|
|
$
|
1,049,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold
Produced(ii) by Mine and Reconciliation of Production
Costs to Minesite Costs per Tonne(iii) by
Mine
|
(thousands of
United States dollars, except as noted)
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
88,795
|
|
|
|
81,199
|
|
|
|
244,865
|
|
|
|
198,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
58,842
|
|
$
|
663
|
|
$
|
64,983
|
|
$
|
800
|
|
$
|
169,990
|
|
$
|
694
|
|
$
|
126,970
|
|
$
|
639
|
Inventory and other
adjustments(iv)
|
|
(4,305)
|
|
(49)
|
|
(14,720)
|
|
(181)
|
|
(4,448)
|
|
(18)
|
|
3,825
|
|
19
|
Cash operating costs
(co-product basis)
|
|
$
|
54,537
|
|
$
|
614
|
|
$
|
50,263
|
|
$
|
619
|
|
$
|
165,542
|
|
$
|
676
|
|
$
|
130,795
|
|
$
|
658
|
By-product metal
revenues
|
|
(19,906)
|
|
(224)
|
|
(15,488)
|
|
(191)
|
|
(58,683)
|
|
(240)
|
|
(29,878)
|
|
(150)
|
Cash operating costs
(by-product basis)
|
|
$
|
34,631
|
|
$
|
390
|
|
$
|
34,775
|
|
$
|
428
|
|
$
|
106,859
|
|
$
|
436
|
|
$
|
100,917
|
|
$
|
508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
444
|
|
|
|
492
|
|
|
|
1,374
|
|
|
|
1,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
58,842
|
|
$
|
133
|
|
$
|
64,983
|
|
$
|
132
|
|
$
|
169,990
|
|
$
|
124
|
|
$
|
126,970
|
|
$
|
103
|
Production costs
(C$)
|
|
C$
|
74,125
|
|
C$
|
167
|
|
C$
|
88,654
|
|
C$
|
180
|
|
C$
|
213,036
|
|
C$
|
155
|
|
C$
|
169,704
|
|
C$
|
138
|
Inventory and other
adjustments (C$)(v)
|
|
(12,905)
|
|
(29)
|
|
(30,354)
|
|
(62)
|
|
(22,359)
|
|
(16)
|
|
(14,347)
|
|
(12)
|
Minesite operating
costs (C$)
|
|
C$
|
61,220
|
|
C$
|
138
|
|
C$
|
58,300
|
|
C$
|
118
|
|
C$
|
190,677
|
|
C$
|
139
|
|
C$
|
155,357
|
|
C$
|
126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
17,952
|
|
|
|
18,981
|
|
|
|
52,483
|
|
|
|
45,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
14,871
|
|
$
|
828
|
|
$
|
12,616
|
|
$
|
665
|
|
$
|
41,809
|
|
$
|
797
|
|
$
|
33,754
|
|
$
|
742
|
Inventory and other
adjustments(iv)
|
|
(563)
|
|
(31)
|
|
349
|
|
18
|
|
(183)
|
|
(4)
|
|
353
|
|
8
|
Cash operating costs
(co-product basis)
|
|
$
|
14,308
|
|
$
|
797
|
|
$
|
12,965
|
|
$
|
683
|
|
$
|
41,626
|
|
$
|
793
|
|
$
|
34,107
|
|
$
|
750
|
By-product metal
revenues
|
|
(61)
|
|
(3)
|
|
(35)
|
|
(2)
|
|
(213)
|
|
(4)
|
|
(121)
|
|
(3)
|
Cash operating costs
(by-product basis)
|
|
$
|
14,247
|
|
$
|
794
|
|
$
|
12,930
|
|
$
|
681
|
|
$
|
41,413
|
|
$
|
789
|
|
$
|
33,986
|
|
$
|
747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
293
|
|
|
|
277
|
|
|
|
848
|
|
|
|
707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
14,871
|
|
$
|
51
|
|
$
|
12,616
|
|
$
|
46
|
|
$
|
41,809
|
|
$
|
49
|
|
$
|
33,754
|
|
$
|
48
|
Production costs
(C$)
|
|
C$
|
18,637
|
|
C$
|
64
|
|
C$
|
16,876
|
|
C$
|
61
|
|
C$
|
52,436
|
|
C$
|
62
|
|
C$
|
45,441
|
|
C$
|
64
|
Inventory and other
adjustments (C$)(v)
|
|
(45)
|
|
—
|
|
662
|
|
2
|
|
1,857
|
|
2
|
|
610
|
|
1
|
Minesite operating
costs (C$)
|
|
C$
|
18,592
|
|
C$
|
64
|
|
C$
|
17,538
|
|
C$
|
63
|
|
C$
|
54,293
|
|
C$
|
64
|
|
C$
|
46,051
|
|
C$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
106,747
|
|
|
|
100,180
|
|
|
|
297,348
|
|
|
|
244,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
73,713
|
|
$
|
691
|
|
$
|
77,599
|
|
$
|
775
|
|
$
|
211,799
|
|
$
|
712
|
|
$
|
160,724
|
|
$
|
658
|
Inventory and other
adjustments(iv)
|
|
(4,868)
|
|
(46)
|
|
(14,371)
|
|
(144)
|
|
(4,631)
|
|
(15)
|
|
4,178
|
|
17
|
Cash operating costs
(co-product basis)
|
|
$
|
68,845
|
|
$
|
645
|
|
$
|
63,228
|
|
$
|
631
|
|
$
|
207,168
|
|
$
|
697
|
|
$
|
164,902
|
|
$
|
675
|
By-product metal
revenues
|
|
(19,967)
|
|
(187)
|
|
(15,523)
|
|
(155)
|
|
(58,896)
|
|
(198)
|
|
(29,999)
|
|
(123)
|
Cash operating costs
(by-product basis)
|
|
$
|
48,878
|
|
$
|
458
|
|
$
|
47,705
|
|
$
|
476
|
|
$
|
148,272
|
|
$
|
499
|
|
$
|
134,903
|
|
$
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
737
|
|
|
|
769
|
|
|
|
2,222
|
|
|
|
1,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
73,713
|
|
$
|
100
|
|
$
|
77,599
|
|
$
|
101
|
|
$
|
211,799
|
|
$
|
95
|
|
$
|
160,724
|
|
$
|
83
|
Production costs
(C$)
|
|
C$
|
92,762
|
|
C$
|
126
|
|
C$
|
105,530
|
|
C$
|
137
|
|
C$
|
265,472
|
|
C$
|
119
|
|
C$
|
215,145
|
|
C$
|
111
|
Inventory and other
adjustments (C$)(v)
|
|
(12,950)
|
|
(18)
|
|
(29,692)
|
|
(38)
|
|
(20,502)
|
|
(9)
|
|
(13,737)
|
|
(7)
|
Minesite operating
costs (C$)
|
|
C$
|
79,812
|
|
C$
|
108
|
|
C$
|
75,838
|
|
C$
|
99
|
|
C$
|
244,970
|
|
C$
|
110
|
|
C$
|
201,408
|
|
C$
|
104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
28,823
|
|
|
|
31,008
|
|
|
|
98,132
|
|
|
|
88,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
23,223
|
|
$
|
806
|
|
$
|
21,786
|
|
$
|
703
|
|
$
|
70,997
|
|
$
|
723
|
|
$
|
58,006
|
|
$
|
659
|
Inventory and other
adjustments(iv)
|
|
(1,261)
|
|
(44)
|
|
(12)
|
|
(1)
|
|
(3,687)
|
|
(37)
|
|
(498)
|
|
(6)
|
Cash operating costs
(co-product basis)
|
|
$
|
21,962
|
|
$
|
762
|
|
$
|
21,774
|
|
$
|
702
|
|
$
|
67,310
|
|
$
|
686
|
|
$
|
57,508
|
|
$
|
653
|
By-product metal
revenues
|
|
(6)
|
|
—
|
|
(4)
|
|
—
|
|
(29)
|
|
—
|
|
(17)
|
|
—
|
Cash operating costs
(by-product basis)
|
|
$
|
21,956
|
|
$
|
762
|
|
$
|
21,770
|
|
$
|
702
|
|
$
|
67,281
|
|
$
|
686
|
|
$
|
57,491
|
|
$
|
653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
695
|
|
|
|
709
|
|
|
|
2,145
|
|
|
|
1,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
23,223
|
|
$
|
33
|
|
$
|
21,786
|
|
$
|
31
|
|
$
|
70,997
|
|
$
|
33
|
|
$
|
58,006
|
|
$
|
31
|
Production costs
(C$)
|
|
C$
|
29,226
|
|
C$
|
42
|
|
C$
|
29,057
|
|
C$
|
41
|
|
C$
|
88,930
|
|
C$
|
41
|
|
C$
|
77,663
|
|
C$
|
41
|
Inventory and other
adjustments (C$)(v)
|
|
(454)
|
|
(1)
|
|
529
|
|
1
|
|
(520)
|
|
—
|
|
200
|
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
28,772
|
|
C$
|
41
|
|
C$
|
29,586
|
|
C$
|
42
|
|
C$
|
88,410
|
|
C$
|
41
|
|
C$
|
77,863
|
|
C$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)(vi)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
89,706
|
|
|
|
74,921
|
|
|
|
255,222
|
|
|
|
140,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
111,425
|
|
$
|
1,242
|
|
$
|
92,256
|
|
$
|
1,231
|
|
$
|
294,786
|
|
$
|
1,155
|
|
$
|
210,105
|
|
$
|
1,494
|
Inventory and other
adjustments(iv)
|
|
(1,819)
|
|
(20)
|
|
2,394
|
|
32
|
|
(2,065)
|
|
(8)
|
|
3,095
|
|
22
|
Cash operating costs
(co-product basis)
|
|
$
|
109,606
|
|
$
|
1,222
|
|
$
|
94,650
|
|
$
|
1,263
|
|
$
|
292,721
|
|
$
|
1,147
|
|
$
|
213,200
|
|
$
|
1,516
|
By-product metal
revenues
|
|
(714)
|
|
(8)
|
|
(235)
|
|
(3)
|
|
(1,907)
|
|
(8)
|
|
(565)
|
|
(5)
|
Cash operating costs
(by-product basis)
|
|
$
|
108,892
|
|
$
|
1,214
|
|
$
|
94,415
|
|
$
|
1,260
|
|
$
|
290,814
|
|
$
|
1,139
|
|
$
|
212,635
|
|
$
|
1,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)(vii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
971
|
|
|
|
907
|
|
|
|
2,774
|
|
|
|
1,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
111,425
|
|
$
|
115
|
|
$
|
92,256
|
|
$
|
102
|
|
$
|
294,786
|
|
$
|
106
|
|
$
|
210,105
|
|
$
|
117
|
Production costs
(C$)
|
|
C$
|
138,421
|
|
C$
|
143
|
|
C$
|
124,802
|
|
C$
|
138
|
|
C$
|
371,435
|
|
C$
|
134
|
|
C$
|
283,116
|
|
C$
|
157
|
Inventory and other
adjustments (C$)(v)
|
|
1,035
|
|
1
|
|
1,088
|
|
1
|
|
9,017
|
|
3
|
|
(4,994)
|
|
(2)
|
Minesite operating
costs (C$)
|
|
C$
|
139,456
|
|
C$
|
144
|
|
C$
|
125,890
|
|
C$
|
139
|
|
C$
|
380,452
|
|
C$
|
137
|
|
C$
|
278,122
|
|
C$
|
155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)(viii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
90,143
|
|
|
|
94,775
|
|
|
|
265,787
|
|
|
|
224,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
52,729
|
|
$
|
585
|
|
$
|
66,937
|
|
$
|
706
|
|
$
|
167,488
|
|
$
|
630
|
|
$
|
182,523
|
|
$
|
814
|
Inventory and other
adjustments(iv)
|
|
4,630
|
|
51
|
|
(919)
|
|
(9)
|
|
(433)
|
|
(1)
|
|
2,044
|
|
9
|
Cash operating costs
(co-product basis)
|
|
$
|
57,359
|
|
$
|
636
|
|
$
|
66,018
|
|
$
|
697
|
|
$
|
167,055
|
|
$
|
629
|
|
$
|
184,567
|
|
$
|
823
|
By-product metal
revenues
|
|
(165)
|
|
(2)
|
|
(106)
|
|
(2)
|
|
(610)
|
|
(3)
|
|
(308)
|
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
|
57,194
|
|
$
|
634
|
|
$
|
65,912
|
|
$
|
695
|
|
$
|
166,445
|
|
$
|
626
|
|
$
|
184,259
|
|
$
|
822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)(ix)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
377
|
|
|
|
368
|
|
|
|
1,039
|
|
|
|
1,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
52,729
|
|
$
|
140
|
|
$
|
66,937
|
|
$
|
182
|
|
$
|
167,488
|
|
$
|
161
|
|
182,523
|
|
$
|
180
|
Production costs
(C$)
|
|
C$
|
66,145
|
|
C$
|
175
|
|
C$
|
89,673
|
|
C$
|
244
|
|
C$
|
210,932
|
|
C$
|
203
|
|
C$
|
246,043
|
|
C$
|
243
|
Inventory and other
adjustments (C$)(v)
|
|
10,000
|
|
27
|
|
(1,258)
|
|
(4)
|
|
10,974
|
|
11
|
|
|
(675)
|
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
76,145
|
|
C$
|
202
|
|
C$
|
88,415
|
|
C$
|
240
|
|
C$
|
221,906
|
|
C$
|
214
|
|
C$
|
245,368
|
|
C$
|
243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
17,957
|
|
|
|
—
|
|
|
|
55,524
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
22,306
|
|
$
|
1,242
|
|
$
|
—
|
|
$
|
—
|
|
$
|
63,975
|
|
$
|
1,152
|
|
$
|
—
|
|
$
|
—
|
Inventory and other
adjustments(iv)
|
|
1,641
|
|
91
|
|
—
|
|
—
|
|
(5,495)
|
|
(99)
|
|
—
|
|
—
|
Cash operating costs
(co-product basis)
|
|
$
|
23,947
|
|
$
|
1,333
|
|
$
|
—
|
|
$
|
—
|
|
$
|
58,480
|
|
$
|
1,053
|
|
$
|
—
|
|
$
|
—
|
By-product metal
revenues
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Cash operating costs
(by-product basis)
|
|
$
|
23,947
|
|
$
|
1,333
|
|
$
|
—
|
|
$
|
—
|
|
$
|
58,480
|
|
$
|
1,053
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
87
|
|
|
|
—
|
|
|
|
221
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
22,306
|
|
$
|
256
|
|
$
|
—
|
|
$
|
—
|
|
$
|
63,975
|
|
$
|
289
|
|
$
|
—
|
|
$
|
—
|
Production costs
(C$)
|
|
C$
|
28,104
|
|
C$
|
323
|
|
C$
|
—
|
|
C$
|
—
|
|
C$
|
80,049
|
|
C$
|
362
|
|
C$
|
—
|
|
C$
|
—
|
Inventory and other
adjustments (C$)(v)
|
|
1,924
|
|
24
|
|
—
|
|
—
|
|
(7,403)
|
|
(33)
|
|
—
|
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
30,028
|
|
C$
|
347
|
|
C$
|
—
|
|
C$
|
—
|
|
C$
|
72,646
|
|
C$
|
329
|
|
C$
|
—
|
|
C$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(i)(ii)*
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
86,803
|
|
|
|
63,093
|
|
|
|
268,459
|
|
|
|
179,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
62,393
|
|
$
|
719
|
|
$
|
51,654
|
|
$
|
819
|
|
$
|
181,319
|
|
$
|
675
|
|
$
|
137,643
|
|
$
|
769
|
Inventory and other
adjustments(iv)
|
|
497
|
|
6
|
|
(962)
|
|
(16)
|
|
1,242
|
|
5
|
|
2,677
|
|
15
|
Cash operating costs
(co-product basis)
|
|
$
|
62,890
|
|
$
|
725
|
|
$
|
50,692
|
|
$
|
803
|
|
$
|
182,561
|
|
$
|
680
|
|
$
|
140,320
|
|
$
|
784
|
By-product metal
revenues
|
|
(1,718)
|
|
(20)
|
|
(1,995)
|
|
(31)
|
|
(5,594)
|
|
(21)
|
|
(5,015)
|
|
(28)
|
Cash operating costs
(by-product basis)
|
|
$
|
61,172
|
|
$
|
705
|
|
$
|
48,697
|
|
$
|
772
|
|
$
|
176,967
|
|
$
|
659
|
|
$
|
135,305
|
|
$
|
756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(i)(iii)(xi)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
2,914
|
|
|
|
2,251
|
|
|
|
8,365
|
|
|
|
6,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
62,393
|
|
$
|
21
|
|
$
|
51,654
|
|
$
|
23
|
|
$
|
181,319
|
|
$
|
22
|
|
$
|
137,643
|
|
$
|
20
|
Production costs
(C$)
|
|
C$
|
78,967
|
|
C$
|
27
|
|
C$
|
68,840
|
|
C$
|
31
|
|
C$
|
229,434
|
|
C$
|
27
|
|
C$
|
184,691
|
|
C$
|
27
|
Inventory and other
adjustments (C$)(v)
|
|
663
|
|
—
|
|
(3,016)
|
|
(2)
|
|
1,466
|
|
1
|
|
(1,102)
|
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
79,630
|
|
C$
|
27
|
|
C$
|
65,824
|
|
C$
|
29
|
|
C$
|
230,900
|
|
C$
|
28
|
|
C$
|
183,589
|
|
C$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
62,089
|
|
|
|
53,149
|
|
|
|
176,068
|
|
|
|
163,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
51,140
|
|
$
|
824
|
|
$
|
45,747
|
|
$
|
861
|
|
$
|
147,744
|
|
$
|
839
|
|
$
|
132,471
|
|
$
|
812
|
Inventory and other
adjustments(iv)
|
|
232
|
|
3
|
|
(2,477)
|
|
(47)
|
|
864
|
|
5
|
|
(5,698)
|
|
(35)
|
Cash operating costs
(co-product basis)
|
|
$
|
51,372
|
|
$
|
827
|
|
$
|
43,270
|
|
$
|
814
|
|
$
|
148,608
|
|
$
|
844
|
|
$
|
126,773
|
|
$
|
777
|
By-product metal
revenues
|
|
(56)
|
|
(1)
|
|
(76)
|
|
(1)
|
|
(189)
|
|
(1)
|
|
(169)
|
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
|
51,316
|
|
$
|
826
|
|
$
|
43,194
|
|
$
|
813
|
|
$
|
148,419
|
|
$
|
843
|
|
$
|
126,604
|
|
$
|
776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
549
|
|
|
|
429
|
|
|
|
1,526
|
|
|
|
1,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
51,140
|
|
$
|
93
|
|
$
|
45,747
|
|
$
|
107
|
|
$
|
147,744
|
|
$
|
97
|
|
$
|
132,471
|
|
$
|
98
|
Production costs
(€)
|
|
€
|
43,157
|
|
€
|
79
|
|
€
|
37,531
|
|
€
|
87
|
|
€
|
124,086
|
|
€
|
81
|
|
€
|
116,189
|
|
€
|
86
|
Inventory and other
adjustments (€)(v)
|
|
29
|
|
—
|
|
(1,924)
|
|
(4)
|
|
127
|
|
—
|
|
(5,118)
|
|
(4)
|
Minesite operating
costs (€)
|
|
€
|
43,186
|
|
€
|
79
|
|
€
|
35,607
|
|
€
|
83
|
|
€
|
124,213
|
|
€
|
81
|
|
€
|
111,071
|
|
€
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
32,402
|
|
|
|
30,937
|
|
|
|
94,191
|
|
|
|
78,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
37,447
|
|
$
|
1,156
|
|
$
|
33,131
|
|
$
|
1,071
|
|
$
|
108,790
|
|
$
|
1,155
|
|
$
|
87,233
|
|
$
|
1,117
|
Inventory and other
adjustments(iv)
|
|
(3,132)
|
|
(97)
|
|
992
|
|
32
|
|
(4,412)
|
|
(47)
|
|
(4,030)
|
|
(52)
|
Cash operating costs
(co-product basis)
|
|
$
|
34,315
|
|
$
|
1,059
|
|
$
|
34,123
|
|
$
|
1,103
|
|
$
|
104,378
|
|
$
|
1,108
|
|
$
|
83,203
|
|
$
|
1,065
|
By-product metal
revenues
|
|
(6,645)
|
|
(205)
|
|
(13,164)
|
|
(426)
|
|
(24,586)
|
|
(261)
|
|
(25,380)
|
|
(325)
|
Cash operating costs
(by-product basis)
|
|
$
|
27,670
|
|
$
|
854
|
|
$
|
20,959
|
|
$
|
677
|
|
$
|
79,792
|
|
$
|
847
|
|
$
|
57,823
|
|
$
|
740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
444
|
|
|
|
558
|
|
|
|
1,458
|
|
|
|
1,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
37,447
|
|
$
|
84
|
|
$
|
33,131
|
|
$
|
59
|
|
$
|
108,790
|
|
$
|
75
|
|
$
|
87,233
|
|
$
|
70
|
Inventory and other
adjustments(v)
|
|
(2,759)
|
|
(6)
|
|
609
|
|
2
|
|
(3,449)
|
|
(3)
|
|
(6,509)
|
|
(6)
|
Minesite operating
costs
|
|
$
|
34,688
|
|
$
|
78
|
|
$
|
33,740
|
|
$
|
61
|
|
$
|
105,341
|
|
$
|
72
|
|
$
|
80,724
|
|
$
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
2,988
|
|
|
|
6,567
|
|
|
|
10,468
|
|
|
|
34,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
1,773
|
|
$
|
593
|
|
$
|
7,585
|
|
$
|
1,155
|
|
$
|
6,199
|
|
$
|
592
|
|
$
|
29,017
|
|
$
|
844
|
Inventory and other
adjustments(iv)
|
|
128
|
|
43
|
|
129
|
|
20
|
|
(253)
|
|
(24)
|
|
(88)
|
|
(3)
|
Cash operating costs
(co-product basis)
|
|
$
|
1,901
|
|
$
|
636
|
|
$
|
7,714
|
|
$
|
1,175
|
|
$
|
5,946
|
|
$
|
568
|
|
$
|
28,929
|
|
$
|
841
|
By-product metal
revenues
|
|
(449)
|
|
(150)
|
|
(2,651)
|
|
(404)
|
|
(2,575)
|
|
(246)
|
|
(9,481)
|
|
(276)
|
Cash operating costs
(by-product basis)
|
|
$
|
1,452
|
|
$
|
486
|
|
$
|
5,063
|
|
$
|
771
|
|
$
|
3,371
|
|
$
|
322
|
|
$
|
19,448
|
|
$
|
565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)(xii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
—
|
|
|
|
188
|
|
|
|
—
|
|
|
|
526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
1,773
|
|
$
|
—
|
|
$
|
7,585
|
|
$
|
40
|
|
$
|
6,199
|
|
$
|
—
|
|
$
|
29,017
|
|
$
|
55
|
Inventory and other
adjustments(v)
|
|
(1,773)
|
|
—
|
|
(127)
|
|
—
|
|
(6,199)
|
|
—
|
|
(765)
|
|
(1)
|
Minesite operating
costs
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,458
|
|
$
|
40
|
|
$
|
—
|
|
$
|
—
|
|
$
|
28,252
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
17,124
|
|
|
|
22,776
|
|
|
|
38,869
|
|
|
|
62,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
15,938
|
|
$
|
931
|
|
$
|
16,108
|
|
$
|
707
|
|
$
|
38,562
|
|
$
|
992
|
|
$
|
51,577
|
|
$
|
824
|
Inventory and other
adjustments(iv)
|
|
799
|
|
46
|
|
1,180
|
|
52
|
|
1,228
|
|
32
|
|
(1,699)
|
|
(27)
|
Cash operating costs
(co-product basis)
|
|
$
|
16,737
|
|
$
|
977
|
|
$
|
17,288
|
|
$
|
759
|
|
$
|
39,790
|
|
$
|
1,024
|
|
$
|
49,878
|
|
$
|
797
|
By-product metal
revenues
|
|
(112)
|
|
(6)
|
|
(441)
|
|
(19)
|
|
(864)
|
|
(23)
|
|
(1,121)
|
|
(18)
|
Cash operating costs
(by-product basis)
|
|
$
|
16,625
|
|
$
|
971
|
|
$
|
16,847
|
|
$
|
740
|
|
$
|
38,926
|
|
$
|
1,001
|
|
$
|
48,757
|
|
$
|
779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per
Tonne(iii)
|
|
September 30,
2021
|
|
September 30,
2020
|
|
September 30,
2021
|
|
September 30,
2020
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
1,233
|
|
|
|
1,559
|
|
|
|
4,620
|
|
|
|
3,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
15,938
|
|
$
|
13
|
|
$
|
16,108
|
|
$
|
10
|
|
$
|
38,562
|
|
$
|
8
|
|
$
|
51,577
|
|
$
|
13
|
Inventory and other
adjustments(v)
|
|
688
|
|
—
|
|
1,052
|
|
1
|
|
918
|
|
1
|
|
(2,333)
|
|
—
|
Minesite operating
costs
|
|
$
|
16,626
|
|
$
|
13
|
|
$
|
17,160
|
|
$
|
11
|
|
$
|
39,480
|
|
$
|
9
|
|
$
|
49,244
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
(i) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(ii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's use of total
cash costs per ounce.
|
(iii) Minesite costs
per tonne is not a recognized measure under IFRS and this data may
not be comparable to data reported by other gold producers. See
"Note Regarding Certain Measures of Performance" for more
information on the Company's use of minesite costs per
tonne.
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
(v) This inventory
and other adjustments reflect production costs associated with the
portion of production still in inventory and smelting, refining and
marketing charges associated with production.
|
(vi) The Meadowbank
Complex's cost calculations per ounce of gold produced for the nine
months ended September 30, 2021 excludes 348 ounces of payable
gold production which were produced during this period as
commercial production at the Amaruq underground project has not yet
been achieved.
|
(vii) The Meadowbank
Complex's cost calculations per tonne for the nine months ended
September 30, 2021 excludes 1,913 tonnes of ore from the
Amaruq underground project which were processed during this period
as commercial production at the Amaruq underground project has not
yet been achieved.
|
(viii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
and nine months ended September 30, 2021 each exclude 6,881
and 24,057 ounces of payable gold production, respectively, which
were produced prior to the achievement of commercial production at
the Tiriganiaq open pit deposit on August 15, 2021. The Meliadine
mine's cost calculations per ounce of gold produced for the three
and nine months ended September 30, 2020 each exclude 1,982 ounces
of payable gold production, which were produced prior to the
achievement of commercial production at the Tiriganiaq open pit
deposit on August 15, 2021.
|
(ix) The Meliadine
mine's cost calculations per tonne for the three and nine months
ended September 30, 2021 exclude 43,491 and 213,867
tonnes of ore from the Tiriganiaq open pit deposit, respectively,
which were processed prior to the achievement of commercial
production at the Tiriganiaq open pit deposit on August 15, 2021.
The Meliadine mine's cost calculations per tonne for the three and
nine months ended September 30, 2020 exclude each 13,374 tonnes of
ore from the Tiriganiaq open pit deposit which were processed prior
to the achievement of commercial production at the Tiriganiaq open
pit deposit on August 15, 2021.
|
* The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three and nine months ended September 30, 2020 exclude 13,305
and 18,930 ounces of payable gold production, respectively, which
were produced prior to the achievement of commercial production at
the Barnat deposit on September 30, 2020.
|
(xi) The Canadian
Malartic mine's cost calculations per tonne for the three and nine
months ended September 30, 2020 exclude 469,966 and 731,309 tonnes
of ore from the Barnat deposit, respectively, which were processed
prior to the achievement of commercial production at the Barnat
deposit on September 30, 2020.
|
(xii) The Creston
Mascota mine's cost calculations per tonne for the three and nine
months ended September 30, 2021 exclude approximately $1.8
million and $6.2 million of production costs incurred,
respectively, during these periods following the ceasing of mining
activities at the Bravo pit during the third quarter of
2020.
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce Produced and All-in
Sustaining Costs per Ounce of Gold Produced
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Production costs per
the condensed interim consolidated statements of income (thousands
of United States dollars)
|
$
|
452,087
|
|
$
|
412,803
|
|
$
|
1,291.659
|
|
$
|
1,049,299
|
Adjusted gold
production (ounces)(i)(ii)(iii)(iv)
|
534,782
|
|
477,406
|
|
1,560,068
|
|
1,214,211
|
Production costs per
ounce of adjusted gold production
|
$
|
845
|
|
$
|
865
|
|
$
|
828
|
|
$
|
864
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory and other
adjustments(v)
|
(6)
|
|
(30)
|
|
(12)
|
|
—
|
Total cash costs per
ounce of gold produced (co-product basis)(vi)
|
$
|
839
|
|
$
|
835
|
|
$
|
816
|
|
$
|
864
|
By-product metal
revenues
|
(55)
|
|
(71)
|
|
(61)
|
|
(59)
|
Total cash costs per
ounce of gold produced (by-product basis)(vi)
|
$
|
784
|
|
$
|
764
|
|
$
|
755
|
|
$
|
805
|
Adjustments:
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
203
|
|
189
|
|
198
|
|
195
|
General and
administrative expenses (including stock options)
|
59
|
|
55
|
|
69
|
|
68
|
Non-cash reclamation
provision, sustaining leases and other
|
13
|
|
8
|
|
13
|
|
10
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
1,059
|
|
$
|
1,016
|
|
$
|
1,035
|
|
$
|
1,078
|
By-product metal
revenues
|
55
|
|
71
|
|
61
|
|
59
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,114
|
|
$
|
1,087
|
|
$
|
1,096
|
|
$
|
1,137
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce Produced and All-in
Sustaining Costs per Ounce of Gold Produced (Excluding the Hope Bay
mine)
|
|
|
|
|
(United States dollars per ounce of gold
produced, except where noted)
|
Three Months
Ended September 30,
2021
|
Nine Months
Ended September 30,
2021
|
Production costs per
the condensed interim consolidated statements of income (thousands
of United States dollars)
|
$
|
429,781
|
$
|
1,227,684
|
Adjusted gold
production (ounces)(i)(ii)(iii)(iv)
|
516,825
|
1,504,544
|
Production costs per
ounce of adjusted gold production
|
$
|
832
|
$
|
816
|
Adjustments:
|
|
|
Inventory and other
adjustments(v)
|
(10)
|
(8)
|
Total cash costs per
ounce of gold produced (co-product basis)(vi)
|
$
|
822
|
$
|
808
|
By-product metal
revenues
|
(57)
|
(63)
|
Total cash costs per
ounce of gold produced (by-product basis)(vi)
|
$
|
765
|
$
|
745
|
Adjustments:
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
174
|
182
|
General and
administrative expenses (including stock options)
|
59
|
70
|
Non-cash reclamation
provision, sustaining leases and other
|
13
|
13
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
1,011
|
$
|
1,010
|
By-product metal
revenues
|
57
|
63
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,068
|
$
|
1,073
|
Notes:
|
|
(i) Adjusted gold
production for the nine months ended September 30, 2021
excludes 348 ounces of payable production of gold at the Meadowbank
Complex which were produced during this period, as commercial
production at the Amaruq underground project has not yet been
achieved.
|
|
(ii) Adjusted gold
production for the three and nine months ended September 30,
2021 exclude 6,881 and 24,057 ounces of payable production of gold
at the Meliadine mine, respectively, which were produced prior to
the achievement of commercial production at the Tiriganiaq open pit
deposit on August 15, 2021.
|
|
(iii) Adjusted gold
production for the three and nine months ended September 30,
2020 exclude 1,982 ounces of payable production of gold at the
Meliadine mine, which were produced prior to the achievement of
commercial production at the Tiriganiaq open pit deposit on August
15, 2021.
|
|
(iv) Adjusted gold
production for the three and nine months ended September 30,
2020 exclude 13,305 and 18,930 ounces of payable production of gold
at the Canadian Malartic mine, respectively, which were produced
prior to the achievement of commercial production at the Barnat
deposit on September 30, 2020.
|
|
(v) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
|
(vi) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See ''Non-GAAP Financial Performance Measures —
Total Cash Costs per Ounce of Gold Produced and Minesite Costs per
Tonne'' for more information on the Company's use of total cash
cost per ounce of gold produced.
|
Reconciliation of
Net Income to Operating Margin(i)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
(thousands of
United States dollars)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income for the
period
|
$
|
114,482
|
|
$
|
222,654
|
|
$
|
440,191
|
|
$
|
306,390
|
Income and mining
taxes expense
|
85,956
|
|
110,035
|
|
272,082
|
|
167,181
|
Other
expenses
|
3,970
|
|
9,132
|
|
7,205
|
|
37,407
|
Foreign currency
translation (gain) loss
|
(6,478)
|
|
4,321
|
|
(7,116)
|
|
11,489
|
Loss (gain) on
derivative financial instruments
|
35,420
|
|
(29,724)
|
|
35,366
|
|
(49,297)
|
Finance
costs
|
22,780
|
|
21,439
|
|
68,209
|
|
74,201
|
General and
administrative
|
31,315
|
|
26,291
|
|
107,573
|
|
82,380
|
Amortization of
property, plant, and mine development
|
192,392
|
|
173,173
|
|
548,816
|
|
456,147
|
Exploration and
corporate development
|
42,141
|
|
30,488
|
|
110,792
|
|
74,468
|
Operating
margin(i)
|
$
|
521,978
|
|
$
|
567,809
|
|
$
|
1,583,118
|
|
$
|
1,160,366
|
Note:
|
(i) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
View original
content:https://www.prnewswire.com/news-releases/agnico-eagle-reports-third-quarter-2021-results---meliadine-and-laronde-mines-drive-record-quarterly-gold-production-2021-guidance-maintained-reintegration-of-nunavummiut-workforce-at-meliadine-and-meadowbank-completed-developm-301410285.html
SOURCE Agnico Eagle Mines Limited