Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars
unless otherwise noted)
TORONTO,
Oct. 28, 2020 /CNW/ - Agnico
Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or
the "Company") today reported quarterly net income of
$222.7 million, or net income of
$0.92 per share, for the third
quarter of 2020. This result includes non-cash mark-to-market
gains on warrants of $20.9 million
($0.09 per share), foreign currency
translation gains on deferred tax liabilities of $14.3 million ($0.06 per share), derivative gains on financial
instruments of $5.1 million
($0.02 per share), non-cash foreign
currency translation losses of $4.3
million ($0.02 per share) and
various other adjustments losses of $2.5
million ($0.01 per
share). Excluding these items would result in adjusted net
income1 of $189.2 million
or $0.78 per share for the third
quarter of 2020. For the third quarter of 2019, the Company
reported net income of $76.7
million or $0.32 per
share.
Included in the third quarter of 2020 net income, and not
adjusted above, are a non-cash stock option expense of $3.1 million ($0.01
per share) and workforce costs of employees affected by the
COVID-19 pandemic (primarily Nunavut-based) of $2.2
million ($0.01 per share).
In the first nine months of 2020, the Company reported net
income of $306.4 million, or
$1.27 per share. This compares
with the first nine months of 2019, when net income was
$141.5 million, or $0.60 per share.
In the third quarter of 2020, cash provided by operating
activities was $462.5 million
($434.4 million before changes in
non-cash components of working capital), compared to the third
quarter of 2019 when cash provided by operating activities was
$349.2 million ($275.3 million before changes in non-cash
components of working capital). The cash provided by
operating activities in the third quarter of 2020 sets a quarterly
record for the Company and resulted in strong quarterly free
cash-flow2 generation.
In the first nine months of 2020, cash provided by
operating activities was $788.5
million ($824.3 million before
changes in non-cash components of working capital), compared to the
first nine months of 2019 when cash provided by operating
activities was $624.2 million
($603.5 million before changes in
non-cash components of working capital).
The increase in cash provided by operating activities in
the third quarter of 2020, compared to the prior-year period, was
mainly due to an increase in revenues from mining operations
resulting from higher average realized gold and silver prices, and
higher gold sales volume, offset by higher production costs from
the Meadowbank Complex, the LaRonde Complex and the Meliadine mine
as a result of higher throughput levels, and higher income and
mining taxes related to higher operating margins in the
quarter. The increase in net income in the third quarter of
2020, compared to the prior-year period, is primarily due to the
reasons described above as well as to non-cash movements related to
mark-to-market gains on warrants and on financial instruments owned
by the Company, partially offset by higher amortization costs from
the Meliadine mine and the Meadowbank Complex. The higher
gold sales volume was primarily driven by strong operational
performances in the quarter from the LaRonde Complex, the
Meadowbank Complex, the Meliadine mine and the Kittila
mine.
The increase in cash provided by operating activities in
the first nine months of 2020, compared to the prior-year period,
was mainly due to an increase in revenues from mining operations
resulting from higher average realized gold prices, partially
offset by lower gold sales volume, the contribution of nine months
of production costs from Meliadine, higher production costs from
the Meadowbank Complex as mining transitioned to the Amaruq
satellite deposit, temporary suspension costs related to the
COVID-19 pandemic and higher income and mining taxes related to
higher operating margins. The increase in net income in the
first nine months of 2020, compared to the prior-year period, is
primarily due to the reasons described above as well as non-cash
movements related to mark-to-market gains on warrants and on
financial instruments, partially offset by higher amortization
costs from the Meliadine mine and the Meadowbank Complex. The
lower gold sales volume was primarily driven by the suspension of
seven of the Company's eight mines in the second quarter of 2020 in
response to the COVID-19 pandemic.
"Despite ongoing challenges related to the COVID-19
pandemic, Agnico Eagle's operations had strong performance in the
third quarter of 2020. Many of our operations set monthly or
quarterly production records, which is a testament to the hard work
of our employees and the continued support of our local communities
in these difficult times", said Sean
Boyd, Agnico Eagle's Chief Executive Officer. "This
solid operational performance, coupled with a record realized gold
price, resulted in strong quarterly free cash flow
generation. With similar production levels expected in the
fourth quarter of 2020, we remain confident in our business and its
ability to generate significant free cash flow on a go-forward
basis. Strong cash-flow generation, together with recent
exploration success in several of our long-life mining camps, gives
us confidence that we have a sustainable, long-term, self-funding
business. With our business on a strong operational and
financial footing, we have further increased our quarterly dividend
by 75%", added Mr. Boyd.
________________________________
|
1
|
Adjusted net income
is a non-GAAP measure. For a discussion regarding the
Company's use of non-GAAP measures, please see "Note Regarding
Certain Measures of Performance".
|
2
|
Free cash flow 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".
|
Third quarter of 2020 highlights include:
- Gold production returns to near-record levels seen in
the fourth quarter of 2019 – Payable gold
production3 in the third quarter of 2020 was 492,693
ounces (including 13,305 ounces of pre-commercial gold production
from the Barnat deposit at Canadian Malartic and 1,982 ounces of
pre-commercial gold production at the Tiriganiaq open pit at
Meliadine) at production costs per ounce of $865, total cash costs per ounce4 of
$764 and all-in sustaining costs per
ounce5 ("AISC") of $1,016.
Production costs, total cash costs per ounce and AISC per ounce
exclude the pre-commercial production ounces from Barnat and
Tiriganiaq
- Operations have rebounded strongly post second quarter
2020 COVID-19 interruptions – In the third quarter
of 2020, new operational records were established at several of the
Company's mines. At Canadian Malartic, record monthly tonnage was
milled in August, while daily record tonnage was milled at Goldex
in September. Record quarterly gold production was achieved at
Meliadine, and record monthly gold production was achieved at
LaRonde Zone 5 ("LZ5") at the LaRonde Complex in August. At
Meadowbank, the operation has showed consistent performance since
July, and Kittila continued to have strong underground production
in the quarter and the mill expansion is progressing ahead of
schedule
- Production and cost guidance maintained for 2020; no
change to longer-term production guidance –
Expected gold production in 2020 is unchanged at 1.68 to 1.73
million ounces, while expected total cash costs per ounce and AISC
per ounce continue to be forecast in the range of $740 to $790 and
$1,025 to $1,075, respectively. Gold production guidance
for 2021 and 2022 remains unchanged with a mid-point of 2.05
million and 2.10 million ounces, respectively
- Slight increase to 2020 capital expenditures reflect
accelerated development spending – Capital
expenditures in 2020 are expected to be approximately $720 to $740
million (compared to previous guidance of $690 million). The increased capital spending
primarily relates to accelerated development programs at Kittila
(mill, water and tailings management) and Amaruq (restart of
underground development and accelerated waste stripping), and the
advanced procurement of pipe for the waterline at Meliadine
- Strong quarterly free cash flow drives 75% increase in
dividend – On the back of record quarterly
results, a quarterly dividend of $0.35 per share has been declared. The previous
quarterly dividend was $0.20 per
share
- COVID-19 update – COVID-19 protocols
(not including compensation paid to Nunavut-based employees) added $2.8 million (approximately $6 per ounce) to the Company's operating costs in
the third quarter of 2020. To-date, the Company has seen limited
impact on operational productivity as a result of COVID-19, and it
is continuing to strengthen and enhance COVID-19 protocols. In the
third quarter of 2020, the Nunavut-based workforce remained at home due
to current COVID-19 health guidelines issued by the Government of
Nunavut and the Company continued
to pay for 75% of the base salaries for these employees (a total of
$3.7 million pre-tax, $2.2 million net of tax, included in Other
Expenses)
- Exploration – The Company's
exploration focus remains on pipeline projects, near mine
opportunities and mineral reserve and mineral resource
replacement. Based on ongoing exploration success and strong
operational performance, the Company anticipates an increase in
exploration spending in 2021. Key exploration highlights
include:
-
- Kittila – Drilling in the Sisar Zone
continues to show potential to significantly expand the zone's
footprint laterally and at depth. Recent intercepts, such as 7.3
grams per tonne ("g/t") gold over 4.4 metres at 1,626 metres depth,
further indicate the Sisar Zone's potential to be developed into a
new mining horizon alongside the Main Zone
- Canadian Malartic
Underground – The expanded drilling
campaign at the East Gouldie Zone completed 77,500 metres (100%
basis) of conversion and expansion drilling in the first nine
months of 2020, resulting in highlights such as 6.3 g/t gold over
39.3 metres at 1,472 metres depth in the deposit's core. The
ongoing success of the drilling program is expected to lead to a
significant increase in East Gouldie's mineral resource estimate at
year-end 2020, which will be integrated into a preliminary economic
assessment which is expected to be completed in early 2021
- LaRonde – Exploration drilling in
LaRonde 3's East mine area is confirming and expanding the high
grade 20N Zinc South Zone discovery, with highlights such as 8.4
g/t gold, 101 g/t silver, 0.57% copper and 13.3% zinc over 2.8
metres at 3,393 metres depth. The latest results also suggest that
gold grades are increasing with depth in the zone, which remains
open to the east, at depth and at shallower levels
- Kirkland Lake Project – The
conversion drilling program at depth at Upper Beaver in the third
quarter of 2020 returned highlight intercepts such as 11.6 g/t gold
and 0.48% copper over 5.6 metres at 1,227 metres depth. Results
from the 2020 exploration program will be incorporated into an
updated mineral reserve and mineral resource estimate at year-end
and an updated technical study to be completed in 2021
- Pinos
Altos – Underground exploration drilling of
the Cubiro deposit is extending and validating the lateral
continuity of wide, high-grade gold and silver intercepts, with
highlights such as 8.1 g/t gold and 119 g/t silver over 3.4 metres
at 77 metres depth. The latest results from Cubiro will be
incorporated into an initial mineral reserve estimate for Cubiro at
year-end that, combined with other developments on the property,
are expected to replace ore mined at Pinos Altos in 2020
________________________________
|
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 Financial and Production Highlights
All of the Company's eight mines started the third quarter
of 2020 operating at full capacity following a successful ramp-up
of operations in May and June 2020. Despite the new hygiene
and safety protocols implemented in response to COVID-19, several
of the Company's mines, including the LaRonde Complex, the
Meadowbank Complex, Meliadine and Kittila, delivered strong
quarterly performance and resulted in quarterly gold production at
near-record levels.
In the third quarter of 2020, payable gold production was
492,693 ounces (including 13,305 ounces of pre-commercial gold
production from the Barnat deposit at Canadian Malartic and 1,982
ounces of pre-commercial gold production at the Tiriganiaq open pit
at Meliadine), compared to 476,937 ounces in the prior-year period
(which included 33,134 ounces of pre-commercial gold production at
Amaruq).
The higher gold production in the third quarter of 2020
when compared to the prior-year period was primarily due to the
strong performance of the Nunavut
operations which achieved their targeted operating rates, partially
offset by lower production from Goldex, Canadian Malartic and
Pinos Altos due to lower grades
than planned as a result of adjustments to the mining sequences and
lower production from Kittila due to a planned shutdown at the end
of the quarter.
In the first nine months of 2020, payable gold production
was 1,235,123 ounces (including 18,930 ounces of pre-commercial
gold production from the Barnat deposit at Canadian Malartic and
1,982 ounces of pre-commercial gold production at the Tiriganiaq
open pit at Meliadine), compared to 1,287,469 ounces in the
prior-year period (including an aggregate of 82,562 ounces of
pre-commercial production at Meliadine and Amaruq).
The lower gold production in the first nine months of
2020, when compared to the prior-year period, was primarily due to
lower production at four of the Company's eight mines as a result
of temporary shutdowns or reduction in activities in the second
quarter of 2020 related to government mandated COVID-19
restrictions, partially offset by the contribution of nine months
of production from Meliadine which achieved commercial production
in May 2019 and strong performance at
Kittila. A detailed description of the production at each
mine is set out below.
Production costs per ounce in the third quarter of 2020
were $865, compared to $713 in the prior-year period. Total cash
costs per ounce in the third quarter of 2020 were $764, compared to $653 in the prior-year period.
Production costs per ounce and total cash costs per ounce
in the third quarter of 2020 increased when compared to the
prior-year period primarily due to higher production costs at the
Meadowbank Complex as mining transitioned to the Amaruq satellite
deposit, higher costs per ounce at Goldex and Canadian Malartic,
mostly related to lower gold production, and higher production
costs at Kittila resulting from contractor cost pressures,
partially offset by lower costs per ounce at Meliadine from higher
gold production and, for total cash costs per ounce, higher
by-product revenues at the LaRonde Complex and the Mexican
operations.
Production costs per ounce in the first nine months of
2020 were $864, compared to
$724 in the prior-year period.
Total cash costs per ounce in the first nine months of 2020 were
$805, compared to $643 in the prior-year period.
Production costs per ounce and total cash costs per ounce
in the first nine months of 2020 increased when compared to the
prior-year period primarily due to lower gold production related to
temporary shutdowns or reduction in activities in the second
quarter of 2020, higher production costs at the Meadowbank Complex
as mining transitioned to the Amaruq satellite deposit, higher
production costs at Kittila as a result of contractor cost
pressures and higher costs per ounce at Goldex and Canadian
Malartic, mostly related to lower gold production.
AISC in the third quarter of 2020 was $1,016 per ounce, compared to $903 in the prior-year period. AISC in the
third quarter of 2020 increased when compared to the prior-year
period primarily due to higher total cash costs per ounce and
higher sustaining capital at the Meadowbank Complex as the Amaruq
satellite deposit transitioned to commercial production, partially
offset by lower general and administrative expenses in the
period.
AISC in the first nine months of 2020 was $1,078 per ounce, compared to $898 in the prior-year period. AISC in the
first nine months of 2020 increased when compared to the prior-year
period primarily due to higher total cash costs per ounce and
higher sustaining capital at the Meadowbank Complex, as the Amaruq
satellite deposit and Meliadine transitioned to commercial
production in the second and third quarters of 2019,
respectively. A detailed description of the cost performance
of each mine is set out below.
Strong Financial Results; Bank Credit Facility Fully
Repaid; Dividend Increased by 75%
Record quarterly cash provided by operating activities
resulted in strong free cash flow generation in the third quarter
of 2020. With the forecast of record gold production in each
of the next two years, combined with strong margins expected to be
supported by the positive outlook for the price of gold, Agnico
Eagle has increased its dividend by a further 75% to $0.35 per share or an annualized rate of
$1.40 per share.
Cash and cash equivalents and short-term investments
decreased slightly to $321.5 million
at September 30, 2020, from the June 30, 2020 balance of
$336.4 million, primarily due to the
July repayment of the $250 million
which was drawn on the Company's unsecured revolving bank credit
facility, largely offset by the strong cash flow generation in the
quarter. The outstanding balance on the Company's unsecured
revolving bank credit facility is now nil, and available liquidity
under this facility is $1.2 billion,
not including the uncommitted $300
million accordion feature.
As of September 30, 2020,
approximately 50% of the Company's remaining 2020 estimated
Canadian dollar exposure is hedged at an average floor price above
1.34 C$/US$ and approximately 20% of
the Company's 2021 estimated Canadian dollar exposure is hedged at
an average floor price of approximately 1.37
C$/US$.
As of September 30, 2020,
approximately 42% of the Company's remaining 2020 estimated Mexican
peso exposure is hedged at an average floor price above
20.00 MXP/US$ and approximately 25%
of the Company's 2021 estimated Mexican peso exposure is hedged at
an average floor price above 21.00
MXP/US$. As of September 30,
2020, approximately 8% of the Company's remaining 2020
estimated Euro exposure is hedged at an average floor price of
approximately 1.13
US$/EUR.
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to support its key input
costs.
Capital Expenditures
The total capital expenditure forecast (including
sustaining capital) for the full year 2020 is now expected to be in
the range of $720 million to
$740 million (previous guidance was
$690 million). With a strong
rebound of the operations in the third quarter of 2020, the Company
accelerated development programs at several sites to increase
production flexibility in 2021 and beyond. The increased
capital spending primarily relates to:
- Kittila – An addition of approximately $15 million in development capital expenditures
to accelerate the completion of the mill expansion, the
construction of the NP4 tailings pond and the construction of the
discharge pipeline following the receipt of the environmental
permits in May 2020, which will
increase the processing volume to 2.0 million tonnes per annum
- Meliadine – An addition of approximately $13 million in development capital expenditures
to purchase pipe for the proposed waterline in order to execute the
project quickly once permitting is complete
- Amaruq – An addition of approximately $12 million in development capital expenditures;
$7 million related to the restart of
the Amaruq underground project and $5
million to accelerate the stripping of the IVR pit to
enhance production flexibility in 2021
Total pre-commercial production gold sales from the Barnat
deposit at Canadian Malartic and anticipated pre-commercial
production and gold sales from the Tiriganiaq open pit at Meliadine
and from the IVR pit at Amaruq are incorporated in, and netted
against, the total 2020 capital expenditure forecast. As a
result, some variability is likely, depending on the timing of the
achievement of commercial production at these projects, prevailing
gold prices and foreign exchange rates.
The following table sets out capital expenditures
(including sustaining capital) in the third quarter and the first
nine months of 2020.
Capital Expenditures
|
|
|
|
|
|
(In thousands of US dollars)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30, 2020
|
|
September 30, 2020
|
|
Sustaining Capital
|
|
|
|
|
|
LaRonde
Complex
|
|
$
|
26,068
|
|
$
|
57,781
|
|
Canadian Malartic
mine
|
|
13,477
|
|
33,866
|
|
Meadowbank
Complex
|
|
20,711
|
|
49,775
|
|
Meliadine
mine
|
|
10,725
|
|
30,011
|
|
Kittila
mine
|
|
8,579
|
|
27,341
|
|
Goldex mine
|
|
4,893
|
|
17,278
|
|
Pinos Altos
mine
|
|
4,810
|
|
11,947
|
|
Creston Mascota
mine
|
|
—
|
|
—
|
|
La India
mine
|
|
1,077
|
|
9,307
|
|
Total Sustaining
Capital
|
|
$
|
90,340
|
|
$
|
237,306
|
|
|
|
|
|
|
|
Development Capital
|
|
|
|
|
|
LaRonde
Complex
|
|
$
|
11,314
|
|
20,679
|
|
Canadian Malartic
mine
|
|
(6,606)
|
|
745
|
|
Meadowbank
Complex
|
|
15,064
|
|
48,981
|
|
Amaruq underground
project
|
|
7,952
|
|
18,598
|
|
Meliadine
mine
|
|
29,694
|
|
63,829
|
|
Kittila
mine
|
|
43,933
|
|
113,066
|
|
Goldex mine
|
|
3,989
|
|
9,096
|
|
Pinos Altos
mine
|
|
1,337
|
|
2,433
|
|
Creston Mascota
mine
|
|
—
|
|
—
|
|
La India
mine
|
|
2,905
|
|
4,928
|
|
Other
|
|
228
|
|
14,234
|
|
Total Development
Capital
|
|
$
|
109,810
|
|
$
|
296,589
|
|
Total Capital
Expenditures
|
|
$
|
200,150
|
|
$
|
533,895
|
|
2020 Gold Production and Cost Guidance Unchanged
Gold production guidance for 2020 is unchanged at 1.68 to
1.73 million ounces (including pre-commercial production of gold
ounces from the Barnat deposit at Canadian Malartic, the Tiriganiaq
open pit at Meliadine and the IVR pit at Amaruq). The Company
anticipates that total cash costs per ounce and AISC per ounce for
2020 will continue to be in the range of $740 to $790 and
$1,025 and $1,075, respectively.
Previous gold production guidance for 2021 and 2022
remains unchanged with a mid-point of 2.05 million and 2.10 million
ounces, respectively. Full production and cost guidance will
be updated with the results for the year-end and fourth quarter of
2020 in February 2021.
Taxes
For the fourth quarter of 2020, the Company anticipates
the overall effective tax rate to be at the higher end of the range
of approximately 40% to 45%, considering current margins. As
previously announced, the Company anticipates the overall full year
effective tax rate for 2020 to be approximately 40% to
45%.
Dividend Record and Payment Dates for the Third Quarter
of 2020
Agnico Eagle's Board of Directors has declared a quarterly
cash dividend of $0.35 per common
share, payable on December 15, 2020
to shareholders of record as of November
25, 2020. Agnico Eagle has declared a cash dividend
every year since 1983.
Expected Dividend Record and Payment Dates for fiscal
2020
Record Date
|
Payment Date
|
November 25,
2020*
|
December 15,
2020*
|
March 1,
2021
|
March 22,
2021
|
Dividend Reinvestment Plan
Please see the following link for information on the
Company's dividend reinvestment plan: Dividend
Reinvestment Plan
COVID-19 Update
From the early days of the outbreak of the COVID-19
pandemic, the Company implemented extraordinary measures with a
constant focus on protecting the health and safety of its
employees, on protecting and supporting the communities in which it
operates and on protecting its operations. In the third
quarter of 2020, the Company further enhanced the protocols put in
place and significantly increased its testing capacity, maintained
its transparent communication with employees and continued its
efforts to strengthen relationships with local
communities.
As of October 27, 2020, 123
employees have tested positive for COVID-19. A significant majority
of these cases were detected by the Company's screening and testing
protocols. To date, these protocols have been effective at
detecting COVID-19 cases and preventing the spread of the virus
within the Company's operations.
Of the 123 employees who have tested positive for
COVID-19, 105 employees have recovered and the Company continues to
follow-up closely on the health status of the 18 employees that
have not yet recovered. Of these 18 cases, one employee
required hospitalization and the other 17 employees are
experiencing mild symptoms and are isolating at home.
Region
|
Total Positive
Cases
|
Detected Offsite
|
Detected by the
Company's
protocols
|
Recovered Cases
|
Finland
|
2
|
1
|
1
|
2
|
Nunavut
|
5
|
2
|
3
|
2
|
Abitibi
|
6
|
6
|
—
|
5
|
Mexico
|
91
|
9
|
82
|
82
|
Exploration
|
19
|
2
|
17
|
14
|
Sub-Total
|
123
|
20
|
103
|
105
|
A breakdown of the ongoing efforts to manage COVID-19 at each
site is detailed in the Appendix.
Agnico Eagle will continue to maintain high standards and
strive to provide a healthy and safe working environment at all its
operations. The Company will continue to monitor the
situation closely to respond promptly as needed.
Senior Management Changes
As we continue to position Agnico Eagle for the future,
the following changes to our senior management team were made as of
October 1, 2020. These changes
are part of our leadership development and succession plan, which
is designed to ensure we have the right leaders in the right roles
to build on our long-term success.
Transitioning to his retirement at the end of 2020,
Greg Laing's responsibilities have
been transferred to Chris
Vollmershausen, who was appointed Senior Vice-President,
Legal, General Counsel & Corporate Secretary. Mr.
Vollmershausen joined the Company in 2014, and has held a series of
positions of increasing responsibility within the legal department,
most recently as Vice-President, Legal & Corporate
Secretary. Prior to joining the Company, Mr. Vollmershausen
was in-house counsel at a Canadian based international
manufacturing Company and worked as a corporate securities lawyer
for a prominent Toronto law
firm. Mr. Laing has agreed to stay on until his retirement at
the end of 2020, in the role of Senior Vice-President, Strategic
Advisor – Legal, to support Chris and the management team during
this transition period.
Third Quarter 2020 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference
call on Thursday, October 29, 2020 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
1-647-427-7450 or toll-free 1-888-231-8191. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056,
access code 3373237. The conference call replay will expire
on November 29, 2020.
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 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.
On March 23, 2020, the
Government of Quebec ordered all
non-essential businesses to close in response to the COVID-19
pandemic. Pursuant to this order, mining operations were
directed to minimize their activities. As a result, the
Company's operations in the Abitibi region of Quebec were temporarily suspended, causing a
meaningful reduction in the first quarter and second quarter of
2020 gold production and a corresponding increase in unit
production costs. In mid-April 2020, the restrictions on mining
activities were lifted by the Government of Quebec and the Company's mining operations in
the Abitibi region resumed in a gradual manner starting on
April 15, 2020. In the third
quarter of 2020, the LaRonde Complex, the Goldex mine and the
Canadian Malartic mine operated at planned levels with new hygiene
and safety protocols in place.
LaRonde Complex – Record Monthly Production at LZ5 in
August; Drilling Continues to Enhance 20N Zinc South Zone and
Future Exploration to Focus on Potential Extensions to Historical
Mineralized Zones
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988. The Company acquired the LZ5 project in 2003. The
LZ5 property lies adjacent to and west of the LaRonde mine and
previous operators exploited the zone by open pit. The LZ5
mine achieved commercial production in June
2018.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2020
|
|
September 30,
2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
769
|
|
764
|
Tonnes of ore milled
per day
|
|
8,359
|
|
8,304
|
Gold grade
(g/t)
|
|
4.27
|
|
4.56
|
Gold production
(ounces)
|
|
100,180
|
|
107,102
|
Production costs per
tonne (C$)
|
|
$
|
137
|
|
$
|
113
|
Minesite costs per
tonne (C$)
|
|
$
|
99
|
|
$
|
103
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
775
|
|
$
|
606
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
476
|
|
$
|
483
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily due to
the timing of unsold concentrate inventory, partially offset by
lower minesite costs per tonne as a higher proportion of tonnes
mined and milled were sourced from the lower cost LZ5.
Production costs per ounce in the third quarter of 2020 increased
when compared to the prior-year period due to the reasons described
above and lower gold production.
Minesite costs per tonne6 in the third quarter
of 2020 decreased when compared to the prior-year period primarily
from lower production and service costs as a higher proportion of
mined and processed ore were sourced from LZ5. Total cash
costs per ounce in the third quarter of 2020 decreased when
compared to the prior-year period due to lower minesite costs per
tonne, partially offset by lower gold production and lower
by-product revenues from lower zinc and copper production as per
the planned mining sequence.
Gold production in the third quarter of 2020 decreased
when compared to the prior-year period primarily as a higher
proportion of ore milled were sourced from the lower-grade LZ5 as a
result of the planned mining sequence.
_______________________
|
6
|
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, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
1,935
|
|
|
2,195
|
Tonnes of ore milled
per day
|
|
|
7,062
|
|
|
8,040
|
Gold grade
(g/t)
|
|
|
4.13
|
|
|
4.33
|
Gold production
(ounces)
|
|
|
244,184
|
|
|
290,280
|
Production costs per
tonne (C$)
|
|
$
|
111
|
|
$
|
117
|
Minesite costs per
tonne (C$)
|
|
$
|
104
|
|
$
|
107
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
658
|
|
$
|
666
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
552
|
|
$
|
516
|
Production costs per tonne in the first nine months of 2020
decreased when compared to the prior-year period primarily due to
the timing of unsold concentrate inventory and lower underground
production and service costs as a higher proportion of mined and
processed tonnes were sourced from LZ5, partially offset by lower
throughput levels mostly related to the suspension of operations in
the period. Production costs per ounce in the first nine
months of 2020 decreased when compared to the prior-year period due
to the reasons described above, partially offset by lower gold
production.
Minesite costs per tonne in the first nine months of 2020
decreased when compared to the prior-year period primarily from
lower production and service costs as a higher proportion of mined
and processed ore was sourced from LZ5, partially offset by lower
throughput levels mostly related to the suspension of operations in
the period. Total cash costs per ounce in the first nine
months of 2020 increased when compared to the prior-year period due
to lower gold production as a result of the suspension of
operations in the period and lower by-product revenues as per the
planned mining sequence, partially offset by lower minesite costs
per tonne.
Gold production in the first nine months of 2020 decreased
when compared to the prior-year period primarily due to the
government mandated suspension of operations (LaRonde mill circuit
from March 23, 2020 to April 29, 2020 and the LZ5 mill circuit from
March 23, 2020 to May 2, 2020), to the delay in accessing higher
grade ore from the West mine area as additional ground support work
was being completed in the first quarter of 2020 and as a higher
proportion of ore milled was sourced from the lower grade LZ5 mine
in the third quarter of 2020.
LaRonde Mine
Mining activities in the West mine area progressed ahead
of schedule in the third quarter of 2020. The West mine area
contributed approximately 12% of the tonnage mined at the LaRonde
Complex, operating at an average rate of 1,037 tonnes per day
("tpd"). The ore extracted from this area returned higher
grade than anticipated, supporting the strong gold production
performance from the Complex. For the fourth quarter of 2020,
seven stopes are planned to be mined in this area. The ore
mined is expected to increase to approximately 1,150 tpd in the
fourth quarter of 2020, which is expected to represent
approximately 15% of the ore mined at the LaRonde
Complex.
The good performance in the West mine area is partially a
result of the automation strategy that helped improve productivity
and reduced employee exposure to seismicity. Since
April 2020, 54% of the West mine
stope mucking has been done with automated scoops. In
September 2020, 87% of the production
mucking relied on automation. Going forward, the West mine
area is expected to be mucked mostly in automated mode.
Automated drilling is still at the testing phase.
With the completion of ground support reinforcement of the
main infrastructure in the West mine area, the LaRonde team is
working on adapting the ground support methods on production
levels. The adjustments in the mining methods and mining
sequence implemented earlier in the year have resulted in lower
seismic frequency in 2020.
Infrastructure continues to be developed to provide
further access to mine LaRonde 3 (below Level 311).
Construction of the 308 level East mine cooling plant is ongoing
and completion is expected in the fourth quarter of
2020.
At Zone LR11-3 (which is at the past producing Bousquet 2
mine) development continues on the access ramp from level 146 of
the LaRonde mine, with 288 metres completed in the third quarter of
2020. Dewatering of the previously mined area and the
rehabilitation of the ramp to level 9 are on-going. The ramp
from level 146 is expected to reach the zone in mid-2021, and
production activities are expected to begin in 2022. As of
December 31, 2019, Zone LR11-3 was
estimated to contain 140,000 ounces of gold in mineral reserves
(1.2 million tonnes grading 3.77 g/t gold) and is open at
depth.
LZ5 Mine
The successful implementation of automated mining
techniques at LZ5 has resulted in a consistent improvement in
productivity. In 2020, 12% of the tonnage was mucked and
hauled remotely to surface, slightly below the 15% target.
However, the forecasted production rate of 3,000 tpd was achieved
in the third quarter of 2020 and is expected to be sustained in the
fourth quarter of 2020 and in 2021. Further productivity
gains are expected as the LZ5 automation team continues optimizing
the automated mining techniques.
Given the success in mining the upper portions of the LZ5
deposit (from surface to 330 metres), mining activities have been
extended to 480 metres starting in 2020. The Company is also
evaluating the potential to develop deeper portions of LZ5 (480
metres to 700 metres) and potentially mine portions of the
neighbouring Ellison property from the LZ5 underground
infrastructure.
Exploration Drilling in LaRonde 3's East Mine Area
Confirms and Expands New High Grade 20N Zinc South Zone
A primary target of exploration drilling at the LaRonde
Complex in the third quarter of 2020 was the new 20N Zinc South
Zone, which occurs at depths between 3.1 and 3.4 kilometres,
slightly to the south and east of the LaRonde mine's East mine area
in the main 20N Zone orebody.
The discovery of the 20N Zinc South Zone and results from
the first six holes drilled into the zone were presented in the
Company's news release dated July 29,
2020.
In contrast to the gold-rich mineral reserves and mineral
resources seen in the massive sulphide lenses in the East mine and
West mine areas immediately to the northwest at the same depth,
most of the drill intercepts in the 20N Zinc South Zone are showing
high zinc and silver grades, with gold grades increasing with
depth.
Selected recent drill results from the 20N Zinc South Zone
from the East mine area of LaRonde 3 (below level 311) are set out
in the table below. Pierce points for the holes are shown on
the LaRonde Complex – Composite Longitudinal Section and drill hole
collar coordinates are set out in the Appendix. All
intercepts reported for the 20N Zinc South Zone show capped gold
and silver grades and uncapped copper, zinc and lead grades over
estimated true widths, based on a current geological interpretation
that is being updated as new information becomes available with
further drilling.
Recent exploration drill results from 20N Zinc South
Zone from the East mine area of LaRonde 3 (below Level
311)
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(capped)*
|
Silver
grade (g/t)
(capped)*
|
Copper
grade
(%)
|
Zinc
grade
(%)
|
Lead
grade
(%)
|
LR-302-012
|
430.1
|
442.2
|
3,393
|
2.8
|
8.4
|
101
|
0.57
|
13.3
|
0.3
|
LR-302-013**
|
213.8
|
226.0
|
3,148
|
2.9
|
3.1
|
138
|
0.10
|
14.6
|
0.4
|
LR-302-014A
|
363.9
|
376.0
|
3,327
|
2.8
|
1.6
|
51
|
0.35
|
11.2
|
0.2
|
LR-314-013
|
408.9
|
418.9
|
3,406
|
5.7
|
5.2
|
111
|
0.91
|
1.2
|
0.0
|
LR-314-015**
|
373.5
|
380.0
|
3,344
|
3.7
|
2.5
|
221
|
0.71
|
11.9
|
1.2
|
|
*Holes for the 20N Zinc South Zone use a capping
factor of 30 g/t gold and 1,000 g/t
silver.
The copper, zinc and lead values in
this table are uncapped.
|
**Holes LR-302-013 and LR-314-015 have not yet
completed QA/QC; check assays are underway.
|
[LaRonde
ComplexComposite–
Longitudinal Section]
Results from five holes drilled into the 20N Zinc South
Zone in the third quarter of 2020 continue to show high zinc and
silver grades, as well as high gold grades in the deepest
intersections.
Hole LR-302-013 extended the upper portion of the zone by
150 metres to the east and at a shallower depth than previously
released hole LR-302-0101, and intersected 3.1 g/t gold, 138 g/t
silver, 0.10% copper, 14.6% zinc and 0.4% lead over 2.9 metres at
3,148 metres depth.
Approximately 190 metres below hole LR-302-013, two holes
confirmed and extended the zone by approximately 200 metres to the
east, with hole LR-302-014A intersecting 1.6 g/t gold, 51 g/t
silver, 0.35% copper, 11.2% zinc and 0.2% lead over 2.8 metres at
3,327 metres depth and hole LR-314-015 intersecting 2.5 g/t gold,
221 g/t silver, 0.71% copper, 11.9% zinc and 1.2% lead over 3.7
metres at 3,344 metres depth.
The two deepest holes drilled to date in the new zone
extended it by approximately 200 metres to 3,400 metres
depth. Both holes featured high-grade gold in addition to
significant copper, zinc and silver values: hole LR-302-012
intersected 8.4 g/t gold, 101 g/t silver, 0.57% copper, 13.3% zinc
and 0.5% lead over 2.8 metres at 3,393 metres depth; and hole
LR-314-013 intersected 5.2 g/t gold, 111 g/t silver, 0.91% copper
and 1.2% zinc over 5.7 metres at 3,406 metres depth.
The results from the two deepest holes suggest gold grades
may be increasing with depth in the 20N Zinc South Zone, which
remains open to the east, at depth and at shallower
levels.
Exploration drilling is ongoing in the 20N Zinc South Zone
using 150-metre spacing, and the Company believes the zone has the
potential to add new mineral resources at the LaRonde Complex at
year-end 2020.
The Company is also actively pursuing exploration and
development opportunities in other areas of the large LaRonde
Complex, including: further developing and potentially bringing
into production the LR11-3 Zone at depth below the former Bousquet
Shaft no. 2; continuing to extend LZ5 and surrounding mineral
resources at depths below 480 metres; further enhancing the value
of the 20N Zone, which remains open at depths below 3,600 metres
and to the west; exploring near-surface mineral resource remnants
along a 1.5-kilometre stretch of the former Dumagami operations
located 400 metres west of the Penna shaft; and examining the
potential of under-explored areas located 1 to 3 kilometres from
surface below LZ5 and west of the 20N Zone, and accessible using an
exploration drift on level 215 that extends westward from the
LaRonde mine at a depth of 2.2 kilometres below surface.
Canadian Malartic Mine – Record Monthly Tonnage Milled
in August; Commercial Production Declared at Barnat deposit;
Exploration Drilling Continues to Infill and Extend East Gouldie
Mineralization
In June 2014, Agnico Eagle
and Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation
and created the Canadian Malartic General Partnership (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 numbers in this
section reflect the Company's 50% interest in the Canadian Malartic
mine, except as otherwise indicated.
Canadian Malartic Mine – Operating
Statistics*
|
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
4,502
|
|
5,290
|
Tonnes of ore milled
per day (100%)**
|
|
59,150
|
|
57,500
|
Gold grade
(g/t)
|
|
1.00
|
|
1.07
|
Gold production
(ounces)
|
|
63,093
|
|
81,573
|
Production costs per
tonne (C$)
|
|
$
|
31
|
|
$
|
27
|
Minesite costs per
tonne (C$)
|
|
$
|
29
|
|
$
|
26
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
819
|
|
$
|
644
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
772
|
|
$
|
615
|
|
*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.
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily due to
lower productivity in the Malartic pit and increased royalty
payments resulting from higher realized gold prices, partially
offset by higher throughput. Production costs per ounce in
the third quarter of 2020 increased when compared to the prior-year
period due to the reasons described above and lower gold
production.
Minesite costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily due to
lower productivity in the Malartic pit and increased royalty
payments resulting from higher realized gold prices. Total
cash costs per ounce in the third quarter of 2020 increased when
compared to the prior-year period due to higher minesite costs per
tonne and lower gold production.
Gold production in the third quarter of 2020 decreased
when compared to the prior-year period primarily due to lower
grades. The higher than anticipated density of historical
openings at the bottom of the Malartic pit required an increased
use of remote operations and thus reduced the production
rate. As a result, lower grade ore from the Malartic pit that
was expected to be stockpiled was processed in the mill.
Pre-commercial production in the third quarter of 2020 from the
Barnat deposit was 13,305 ounces of gold.
Canadian Malartic Mine – Operating
Statistics*
|
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
13,600
|
|
15,608
|
Tonnes of ore milled
per day (100%)**
|
|
54,973
|
|
57,172
|
Gold grade
(g/t)
|
|
0.94
|
|
1.12
|
Gold production
(ounces)
|
|
179,016
|
|
249,554
|
Production costs per
tonne (C$)
|
|
$
|
27
|
|
$
|
26
|
Minesite costs per
tonne (C$)
|
|
$
|
27
|
|
$
|
26
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
769
|
|
$
|
615
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
756
|
|
$
|
597
|
|
*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.
|
Production costs per tonne in the first nine months of 2020 were
higher when compared to the prior-year period due to lower
throughput levels as a result of the suspension of operations in a
portion of the first and second quarters of 2020 and lower
productivity in the Malartic pit. Production costs per ounce
in the first nine months of 2020 increased when compared to the
prior-year period due to the reasons described above and lower gold
production.
Minesite costs per tonne in the first nine months of 2020
were higher when compared to the prior-year period due to lower
throughput levels as a result of the suspension of operations in a
portion of the first and second quarters of 2020 and lower
productivity in the Malartic pit. Total cash costs per ounce
in the first nine months of 2020 increased compared to the
prior-year period due to the reasons described above and lower gold
production.
Gold production in the first nine months of 2020 decreased
when compared to the prior-year period primarily as a result of
lower grades and lower throughput. A higher proportion of the
ore processed in 2020 was sourced from the lower grade stockpiles
to facilitate the production ramp-up following the suspension of
operations in the period and to compensate for the limited
flexibility in the Malartic pit bottom. The lower throughput
was primarily caused by the suspension of the milling operations
from March 23, 2020 to April 17, 2020. Pre-commercial production
in the first nine months of 2020 from the Barnat deposit was 18,930
ounces of gold.
The Canadian Malartic Mine won the prestigious F.J.
O'Connell Trophy from the Quebec Mining Association for excellence
in health and safety performance in the "surface, transportation
and primary metal processing operations" category for 2019.
It also received the "Sustainable Development and Environment"
award from the Val D'or Chamber of
Commerce.
Mining activities at the Barnat deposit progressed ahead
of plan due to better productivity than anticipated and commercial
production was declared on September
30, 2020. The focus remains on overburden stripping
and drilling to map the bedrock topography to increase the
production flexibility at Barnat.
At the Malartic pit, the mining sequence offers less
flexibility as the footprint of the pit is reduced as the pit
deepens. Development of the Barnat mining area is expected to
increase mining flexibility going forward. In the fourth
quarter of 2020, the Malartic pit is expected to provide
approximately 70% of the mill feed. Any production loss from
the Malartic pit is expected to be replaced by ore from the lower
grade stockpiles.
At the Canadian Malartic mill, two planned shutdowns were
completed in the third quarter of 2020. The gyratory main
frame was replaced in July and the first cone crusher was replaced
in September. Despite the shutdowns, the daily throughput was
significantly higher compared to the prior-year period, with the
mill recording a monthly throughput of 2,010,180 tonnes in August
(including pre-commercial production tonnes). The newly
installed advanced process control system and improvements in rock
fragmentation have improved the consistency in the daily throughput
at the mill.
In mid-2020, the Partnership approved the start of
construction of surface infrastructure and an underground
exploration ramp into the East Gouldie, Odyssey and East Malartic zones (collectively called the
"Odyssey Project"). This ramp will provide additional access
for exploration drilling to expand and upgrade the current mineral
resource base, and allow for bulk sampling of up to 40,000 tonnes
of mineralized material.
The Odyssey Project exploration ramp portal was started in
the third quarter of 2020. The portal is expected to be
completed at the end of November and it is anticipated that ramp
development activities will continue for approximately the next two
years. Expenditures for the ramp in 2020 are estimated to be
C$6 million (50% basis).
The Partnership expects to complete a preliminary economic
assessment of the Odyssey Project in early 2021 that will examine
potential new development synergies between the various zones at
East Gouldie, East Malartic,
Odyssey and Canadian Malartic.
The expected increases in mineral resources, particularly
at East Gouldie, are anticipated to eventually replace mineral
reserves currently being mined at the adjacent Canadian Malartic
pit.
Expanded Drill Program at East Gouldie Zone Extends Known
Mineralization and Infills High Grade Core; Partnership to Prepare
Mineral Resource Update for Year-End 2020
The Canadian Malartic property, together with the Rand
Malartic and Midway properties, cover in excess of 25 kilometres
along the Cadillac-Larder Lake
deformation zone.
The primary exploration target at Canadian Malartic in
2020 is the East Gouldie Zone, which was discovered in late 2018 at
underground depths approximately 1.5 kilometres east of the
Canadian Malartic/Barnat open pit and south of the East Malartic and Odyssey underground
zones. The East Gouldie Zone has a strike length of 1,400
metres in an east-west direction, dips 60 degrees north, and
extends from 700 metres to 1,900 metres depth below
surface.
The Partnership's drilling program in 2019 totalled 82,379
metres (100% basis) and allowed for the declaration of an initial
inferred mineral resource estimate at East Gouldie of 1.4 million
ounces of gold (12.8 million tonnes grading 3.34 g/t gold) (50%
basis), as of December 31,
2019.
Drilling activity in the first nine months of 2020
totalled 77,500 metres (100% basis) with multiple mother holes and
wedge cuts, resulting in a total of 44 new pierce points in the
East Gouldie Zone as well as seven pierce points in the Odyssey
South Zone and two in the Chert Zone.
The East Gouldie Zone is divided into two main parallel
and closely spaced sub-zones, named East Gouldie North and East
Gouldie South, which are complemented by additional nearby
sub-zones to the north, in between and to the south of these two
main sub-zones. The sub-zone associated with each drill
intersection is indicated in the table below.
There are currently 12 drill rigs targeting the East
Gouldie Zone in a program designed to expand the mineral resource
envelope with a 150-metre drill spacing pattern and tighten the
drill spacing in the zone's high grade core to 75 metres, which the
Company anticipates could potentially lead to a significant
increase in inferred mineral resources at year-end 2020. A
13th drill rig is drilling a vertical hole for geotechnical
purposes at a potential location for a shaft.
Detailed drill results from East Gouldie were last
reported in the Company's news release dated February 13, 2020, and an exploration progress
report was provided in the Company's news release dated
July 29, 2020.
Selected drill intercepts from the East Gouldie Zone in
the first nine months of 2020 are set out in the table below.
The pierce points are shown on the Canadian Malartic and Odyssey –
Composite Longitudinal Section, and drill hole collar coordinates
are set out in a table in the Appendix. The intercepts
reported for East Gouldie show uncapped and capped gold grades over
estimated true widths, based on a preliminary geological
interpretation that is being updated as new information becomes
available with further drilling.
Selected recent drill results from the East Gouldie
Zone at Canadian Malartic
Drill hole
|
Sub-zone*
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)**
|
MEX19-140WB
|
EG North
|
1,497.0
|
1,507.5
|
1,090
|
10.1
|
3.2
|
3.2
|
and
|
EG South
|
1,608.0
|
1,623.0
|
1,145
|
14.3
|
3.7
|
3.7
|
MEX19-151WC
|
EG North
|
1,686.0
|
1,728.0
|
1,472
|
39.3
|
6.9
|
6.3
|
including
|
|
1,698.0
|
1,712.0
|
1,470
|
13.1
|
10.5
|
9.9
|
MEX19-159
|
EG South
|
1,822.0
|
1,836.2
|
1,625
|
13.1
|
4.9
|
4.2
|
including
|
|
1,829.9
|
1,836.2
|
1,628
|
5.8
|
9.6
|
8.1
|
MEX19-159A
|
EG South
|
1,795.0
|
1,820.6
|
1,533
|
24.0
|
7.6
|
6.7
|
including
|
|
1,798.0
|
1,811.0
|
1,531
|
12.2
|
12.0
|
10.3
|
MEX19-160
|
EG North
|
1,567.1
|
1,589.8
|
1,091
|
21.3
|
6.9
|
6.3
|
and
|
Btw EG
N&S
|
1,596.0
|
1,602.1
|
1,101
|
5.7
|
2.7
|
2.7
|
MEX20-163AW
|
EG North
|
1,207.4
|
1,237.0
|
1,035
|
27.4
|
9.5
|
8.2
|
MEX20-163AWA
|
EG North
|
1,197.0
|
1,217.5
|
1,011
|
20.0
|
8.8
|
7.5
|
MEX20-164
|
EG North
|
1,886.2
|
1,900.0
|
1,730
|
11.7
|
6.2
|
5.5
|
MEX20-164W
|
EG North
|
1,888.2
|
1,904.4
|
1,696
|
11.9
|
2.6
|
2.6
|
MEX20-166
|
EG South
|
1,694.0
|
1,718.0
|
1,428
|
22.1
|
5.7
|
5.3
|
MEX20-167
|
Mrg EG
N&S
|
1,627.0
|
1,660.5
|
1,333
|
32.5
|
4.7
|
4.7
|
MEX20-169AW
|
EG North
|
1,924.4
|
1,934.5
|
1,803
|
8.2
|
2.1
|
2.1
|
and
|
EG South
|
1,951.0
|
1,968.0
|
1,826
|
13.8
|
2.0
|
2.0
|
MEX20-170AW
|
EG North
|
1,769.7
|
1,780.0
|
1,559
|
9.4
|
5.4
|
5.4
|
and
|
EG South
|
1,793.3
|
1,799.0
|
1,574
|
5.2
|
2.5
|
2.5
|
and
|
EG South
|
1,802.1
|
1,826.3
|
1,587
|
22.1
|
2.2
|
2.2
|
MEX20-171
|
EG North
|
1,788.9
|
1,815.0
|
1,627
|
23.5
|
1.8
|
1.8
|
and
|
EG South
|
1,821.0
|
1,860.4
|
1,657
|
35.6
|
2.0
|
2.0
|
MEX20-171WA
|
EG South
|
1,881.0
|
1,892.8
|
1,734
|
10.0
|
2.5
|
2.5
|
MEX20-172A
|
North of
EG
|
1,592.0
|
1,598.0
|
1,497
|
5.1
|
3.3
|
3.3
|
and
|
EG South
|
1,959.0
|
1,975.8
|
1,815
|
14.7
|
3.3
|
3.3
|
MEX20-172AW
|
North of
EG
|
1,829.0
|
1,856.8
|
1,655
|
25.9
|
5.5
|
5.5
|
and
|
EG South
|
1,898.0
|
1,917.0
|
1,701
|
17.6
|
2.6
|
2.6
|
MEX20-172AWA
|
EG North
|
1,877.5
|
1,885.0
|
1661
|
6.6
|
3.7
|
3.7
|
and
|
EG South
|
1,919.0
|
1,935.5
|
1687
|
14.2
|
9.0
|
7.5
|
MEX20-176
|
EG North
|
1,337.0
|
1,357.4
|
979
|
20.0
|
3.3
|
3.3
|
MEX20-177
|
EG North
|
1,377.4
|
1,381.0
|
1,244
|
3.3
|
6.1
|
5.3
|
and
|
EG South
|
1,418.0
|
1,423.3
|
1,276
|
4.8
|
3.3
|
3.3
|
MEX20-178
|
Mrg EG
N&S
|
1,231.6
|
1,272.6
|
1,094
|
36.5
|
6.3
|
6.0
|
MEX20-178W
|
EG North
|
1,230.0
|
1,234.0
|
1,015
|
3.5
|
3.8
|
3.8
|
MEX20-178WA
|
EG North
|
1,242.7
|
1,278.7
|
1,118
|
28.5
|
3.8
|
3.6
|
and
|
EG South
|
1,308.0
|
1,332.3
|
1,167
|
19.2
|
2.6
|
2.6
|
|
*Sub-zones recognized at East Gouldie Zone include:
East Gouldie North; North of EG North; East Gouldie South; South of
EG South; Between EG North and EG South; and Merger of EG North and
EG South.
|
**Results from the East Gouldie Zone use a capping
factor of 15 g/t gold.
|
[Canadian Malartic and Odyssey – Composite Longitudinal
Section]
The ongoing drilling campaign at the East Gouldie Zone
continues to return positive and consistent results.
Mineral resource expansion drilling in the upper, western
portion of the East Gouldie Zone is filling gaps at the western
edges of the 2019 mineral resource, with highlights including hole
MEX-20-163AW, which intersected 8.2 g/t gold over 27.4 metres at
1,035 metres depth and hole MEX-20-163AWA, which intersected 7.5
g/t gold over 20.0 metres at 1,011 metres depth, approximately 100
metres east of hole MEX-20-163AW.
Other highlights from expansion drilling at and beyond the
outer edges of the East Gouldie Zone include hole MEX-19-140WB,
which intersected 3.2 g/t gold over 10.1 metres at 1,090 metres
depth and 3.7 g/t gold over 14.3 metres at 1,145 metres depth at
the upper, middle boundary of the 2019 mineral resource; hole
MEX-20-164, which intersected 5.5 g/t gold over 11.7 metres at
1,730 metres depth beneath the middle of the zone, approximately 50
metres below the currently defined mineralized envelope; and hole
MEX-20-164W, which intersected 2.6 g/t gold over 11.9 metres at
1,696 metres depth, approximately 80 metres west of hole MEX20-164
and outside the currently defined mineralized envelope.
In the eastern, deepest portion of the East Gouldie Zone,
hole MEX20-172A intersected 3.3 g/t gold over 5.1 metres at 1,497
metres depth and 3.3 g/t gold over 14.7 metres at 1,815 metres
depth, beyond the 2019 mineral resource but within the mineralized
envelope.
Additional expansion drilling has been completed between
isolated pockets of mineral resources initially outlined in the
2019 mineral resource estimate, potentially leading to the merging
of these pockets into larger, unified mineralized bodies in future
mineral resource updates. Highlights from these expansion
holes include hole MEX-19-159, which intersected 4.2 g/t gold over
13.1 metres at 1,625 metres depth, including 8.1 g/t gold over 5.8
metres at 1,628 metres depth, between three mineral resource
pockets in the lower, middle portion of the zone; hole MEX-20-159A,
which intersected 6.7 g/t gold over 24.0 metres at 1,533 metres
depth, including 10.3 g/t gold over 12.2 metres at 1,531 metres
depth, beneath the lower, middle boundary of the core; and hole
MEX-20-166, which intersected 5.3 g/t gold over 22.1 metres at
1,428 metres depth between pockets of mineral resources in the
eastern portion of the zone.
In the first nine months of 2020, drilling into the high
grade core of the East Gouldie Zone continued to return positive
grades and substantial thicknesses, with highlights that include
hole MEX19-160, which intersected 6.3 g/t gold over 21.3 metres at
1,091 metres depth and 2.7 g/t gold over 5.7 metres at 1,101 metres
depth in the centre of the core; hole MEX20-167, which intersected
4.7 g/t gold over 32.5 metres at 1,333 metres depth, approximately
200 metres south of hole MEX19-160; hole MEX-19-151WC, which
intersected 6.3 g/t gold over 39.3 metres at 1,472 metres depth,
including 9.9 g/t gold over 13.1 metres at 1,470 metres depth in
the lower portion of the core; and hole MEX20-176, which
intersected 3.3 g/t gold over 20.0 metres at 979 metres depth at
the upper, middle portion of the core.
Due to the ongoing success of the drilling campaign, the
Partnership is improving the quality of the mineral resources in
the core of the East Gouldie Zone and increasing the level of
confidence in the overall grade, tonnage and geometry of the
mineralization in the entire zone. This is expected to lead
to a significant increase in East Gouldie's mineral resource
estimate at year-end 2020, which will be integrated into a
preliminary economic assessment which is expected to be completed
in early 2021.
In regional exploration at Canadian Malartic, 8 drill
holes totalling 3,903 metres (100% basis) were completed in the
third quarter of 2020 (49 drill holes for 19,824 metres
year-to-date, on a 100% basis), mostly targeting the East Amphi
deposit, located 3 kilometres northwest of the Canadian Malartic
pit, and the Rand Malartic property, adjacent to the east of the
Canadian Malartic property.
At East Amphi, drilling totalled 9 holes (6,527 metres)
(100% basis) in the first nine months of 2020. The Nessie
Zone was extended by 50 metres at depth, with the drilling
continuing to return broad mineralized intersections with local,
narrow high grade intervals. The Nessie Zone remains open at
depth and to the east. New gold mineralization was also
discovered along a parallel trend 80 metres south of Nessie at a
similar depth of approximately 150 metres below surface.
Follow-up drilling in 2021 will target possible extensions of
Nessie and the new discovery to the east and at depth.
At Rand Malartic, drilling totalled 34 holes (10,498
metres) (100% basis) in the first nine months of 2020 and tested
several near-surface targets on the property. Gold
mineralization was intersected in the upper extension of the #67
Porphyry and anomalous gold values were found at two new
occurrences in the northern half of the property.
Portions of the mineral resources at the East Gouldie,
East Malartic and Odyssey zones
could potentially be converted into mineral reserves and developed
into underground operations in the future.
Goldex – Record Daily Tonnage Milled in September;
Evaluating the Potential to Extend Mining in the Deep 1 and South
Zone at Depth
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, 2020
|
|
September 30, 2019
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
709
|
|
712
|
|
Tonnes of ore milled
per day
|
|
7,707
|
|
7,739
|
|
Gold grade
(g/t)
|
|
1.50
|
|
1.77
|
|
Gold production
(ounces)
|
|
31,008
|
|
37,142
|
|
Production costs per
tonne (C$)
|
|
$
|
41
|
|
$
|
38
|
|
Minesite costs per
tonne (C$)
|
|
$
|
42
|
|
$
|
38
|
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
703
|
|
$
|
546
|
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
702
|
|
$
|
549
|
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily as a
result of higher lateral development costs for the South
Zone. Production costs per ounce in the third quarter of 2020
increased when compared to the prior-year period primarily due to
the reason described above and lower gold production.
Minesite costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily as a
result of higher lateral development costs for the South
Zone. Total cash costs per ounce in the third quarter of 2020
increased when compared to the prior-year period due to the reason
described above and lower gold production.
Gold production in the third quarter of 2020 decreased
when compared to the prior-year period primarily from lower grades
processed due to a change in the mining sequence as a result of an
unplanned shutdown described below, higher dilution than
anticipated in secondary stopes and lower grade reconciliation from
the South Zone development. A return towards planned grades
is expected in the fourth quarter of 2020.
Goldex Mine – Operating
Statistics
|
|
|
|
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,899
|
|
2,101
|
Tonnes of ore milled
per day
|
|
6,931
|
|
7,696
|
Gold grade
(g/t)
|
|
1.58
|
|
1.70
|
Gold production
(ounces)
|
|
88,033
|
|
105,921
|
Production costs per
tonne (C$)
|
|
$
|
41
|
|
$
|
38
|
Minesite costs per
tonne (C$)
|
|
$
|
41
|
|
$
|
38
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
659
|
|
$
|
563
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
653
|
|
$
|
565
|
Production costs per tonne in the first nine months of 2020
increased when compared to the prior-year period due to lower
throughput levels as a result of the suspension of operations in a
portion of the first and second quarters of 2020 and due to higher
lateral development costs for the South Zone. Production
costs per ounce in the first nine months of 2020 increased when
compared to the prior-year period primarily due to the reasons
described above and lower gold production.
Minesite costs per tonne in the first nine months of 2020
increased when compared to the prior-year period due to the reasons
described above. Total cash costs per ounce in the first nine
months of 2020 increased when compared to the prior-year period due
to the reasons described above and lower gold
production.
Gold production in the first nine months of 2020 decreased
when compared to the prior-year period primarily due to the
temporary suspension of the mill from March
23, 2020 to April 24, 2020,
and lower grades related to the mining sequence and higher dilution
than anticipated in secondary stopes.
The Goldex mine won the prestigious F.J. O'Connell trophy
from the Quebec Mining Association for excellence in health and
safety performance in the category of underground operations with
over 400,000 hours worked for 2019. Goldex was recognized for
its improved performance and for achieving an impressive combined
lost-time accident and restricted work frequency rate of 0.7 in
2019.
The Goldex mine faced some early challenges in the third
quarter of 2020, with an unplanned shutdown at the mill and the
pastefill plant. As a result of these shutdowns, the mining
sequence was altered which resulted in lower mill head grade than
forecasted. However, the mill performed well through August
and with September achieving the highest daily average mill
throughput since the restart of the mine in 2013 at 8,373 tpd
average. With the strong mill performance and the return of
the higher grade stopes into the schedule, the Company expects
strong performance at Goldex in the fourth quarter of
2020.
The new Rail-Veyor maintenance bay was commissioned at the
beginning of July giving more operating hours to the Rail-Veyor
system and increasing its productivity. Over the third
quarter of 2020, the Rail-Veyor hauled an average of 6,328 tpd from
the Deep mine and it is expected to operate in the range of
6,500 tpd and 7,000 tpd in the fourth quarter of
2020.
Mining in the South Zone was lower in the third quarter of
2020 as the Company prioritized lateral development over
stoping. The mining rate for the third quarter of 2020 was
420 tpd compared to a forecast rate of 650 tpd. The mining
rates at the South Zone are expected to be in the 500 tpd
to 600 tpd range in the fourth quarter of 2020. The Company
continues to evaluate the potential for the South Zone to provide
additional incremental ore feed and grade flexibility to the Goldex
mill.
Exploration update – Focus on conversion drilling of the
South Zone and Deep 2 Zone
Exploration at the Goldex mine in the third quarter of
2020 was focused on conversion and exploration drilling in two
sectors of the South Zone orebody, which has been extended along
strike to the west and east and at depth, and remains open
laterally and at depth below level 132. The results confirm
expectations and should lead to the replacement of ore mined at
Goldex in 2020 in the mineral reserve and mineral resource estimate
calculated at year-end.
Conversion drilling was also completed in the Deep 2 Zone,
confirming the grades and continuity of gold mineralization between
levels 140 and 150, and providing information that will be used to
make a decision in 2021 on extending the ramp down to level
150.
Kirkland Lake Project – Drilling at Upper Beaver
Deposit Confirms Potential for Resource Conversion and Expansion at
Depth and Near-Surface
The 100% owned Kirkland
Lake project in northeastern Ontario covers approximately 27,073 hectares,
a large property measuring approximately 35 kilometres long by 17
kilometres wide..
At the property, the Company is evaluating opportunities
to develop the Upper Beaver deposit and explore surrounding
deposits and mineralized occurrences through exploration programs
that feature prospecting, geophysical surveys and diamond
drilling.
Exploration activity in the third quarter of 2020 remained
focused on mineral resource conversion drilling of the Upper Beaver
deposit at depth and near surface, as well as early-stage work and
diamond drilling in other areas of the property.
The Upper Beaver deposit is atypical of the Kirkland Lake district. Gold-copper
mineralization is mainly hosted in the Upper Beaver alkalic
intrusive complex and the surrounding basalts it intruded, and is
associated with disseminated pyrite and chalcopyrite, and
magnetite-sulphide veining associated with strong
magmatic-hydrothermal alteration. The mineralization occurs
as elongated tabular bodies that strike northeast, dip steeply
northwest and plunge 65 degrees to the northeast. The
mineralization has been defined along a 400-metre strike length
from surface to a depth of 2,000 metres and it remains open at
depth.
The Upper Beaver deposit's probable mineral reserve
estimate was 8.0 million tonnes grading 5.43 g/t gold and 0.25%
copper (1.4 million ounces of gold and 19,980 tonnes of copper) at
underground depths as of December 31,
2019 and there are substantial indicated and inferred
mineral resources.
Results from the Kirkland
Lake project were last reported in the Company's news
release dated July 29,
2020.
Selected recent intercepts from the Upper Beaver deposit
at the Kirkland Lake project are
set out in the table below. The pierce points are shown on
the Kirkland Lake Project – Upper Beaver Composite Longitudinal
Section and the drill collar coordinates are in a table in the
Appendix. All intercepts reported for the Kirkland Lake project show uncapped and capped
gold grades and uncapped copper grades over estimated true widths,
based on a preliminary geological interpretation that is being
updated as new information becomes available with further
drilling.
Selected recent exploration drill results from the
Upper Beaver deposit at the Kirkland
Lake project
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
mid-point
below
surface
(metres)
|
Estimated
true width
(metres)*
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)**
|
Copper
grade (%)
(uncapped)
|
KLUB20-200W10
|
East
Porphyry
|
1,496.0
|
1,512.0
|
1,333
|
14
|
4.4
|
4.4
|
0.22
|
including
|
|
1,496.0
|
1,500.0
|
1,328
|
3.5
|
6.4
|
6.4
|
0.38
|
KLUB20-200W11
|
Footwall
|
1,557.0
|
1573
|
1,370
|
12.8
|
9.4
|
9
|
0.44
|
including
|
|
1,557.0
|
1565
|
1,367
|
6.4
|
14
|
13.1
|
0.62
|
KLUB20-310AW1
|
Footwall
|
1,398.3
|
1,419.2
|
1,273
|
10.2
|
4.3
|
4.3
|
0.29
|
including
|
|
1,401.0
|
1,414.8
|
1,272
|
6.7
|
5.6
|
5.6
|
0.36
|
KLUB20-384EXT
|
Shallow
Basalt
|
287
|
297
|
202
|
7
|
5.5
|
5.5
|
0.3
|
and
|
Shallow
Basalt
|
322
|
353
|
232
|
21.6
|
3.5
|
3.5
|
0.12
|
including
|
|
331
|
341.9
|
231
|
7.5
|
6.4
|
6.4
|
0.09
|
including
|
|
349
|
353
|
241
|
2.8
|
5.1
|
5.1
|
0.21
|
and
|
Shallow
Basalt
|
362.5
|
367
|
251
|
3.3
|
7.8
|
7.8
|
0.17
|
KLUB20-561W2
|
East
Porphyry
|
1,284.0
|
1,295.2
|
1,220
|
8.4
|
6.8
|
6.8
|
0.13
|
including
|
|
1,285.0
|
1,289.0
|
1,217
|
3.1
|
17
|
17
|
0.02
|
KLUB20-561W3
|
East
Porphyry
|
1,286.0
|
1,294.7
|
1,227
|
5.6
|
11.6
|
11.6
|
0.48
|
KLUB20-561W4
|
East
Porphyry
|
1,268.5
|
1,277.5
|
1,199
|
7.8
|
8.8
|
8.8
|
0.4
|
including
|
|
1,274.0
|
1,277.5
|
1,202
|
3
|
13.8
|
13.8
|
0.79
|
KLUB20-561W5
|
East
Porphyry
|
1,321.0
|
1,342.6
|
1,280
|
13
|
3.5
|
3.5
|
0.49
|
including
|
|
1,320.0
|
1,325.0
|
1,272
|
3
|
6.7
|
6.7
|
0.63
|
including
|
|
1,332.0
|
1,337.5
|
1,283
|
3.3
|
5.7
|
5.7
|
0.74
|
|
*Estimated true width values are
preliminary.
|
**Holes in the shallow basalts and crown pillar at
the Upper Beaver deposit use a capping factor of 30 g/t
gold.
Holes in the Deep East Porphyry and
Footwall zones of the Upper Beaver deposit use a capping factor of
90 g/t gold.
|
[Kirkland Lake Projects - Local Geology Map]
The aim of the deep drilling program at Upper Beaver in
2020 is to convert inferred mineral resources of the Deep East
Porphyry and Footwall zones at depths of 1,200 to 1,400 metres
below surface. Multiple targets down-plunge of both zones to
approximately 1,600 metres depth have also been added to the
program based on recent positive exploration results. The
deep drilling has targeted 34 pierce points within these two zones,
with results obtained from 18 pierce points to date.
In the deep conversion drilling program in the third
quarter of 2020, hole KLUB20-200W11 intersected the central core of
the Deep Footwall zone, intersecting 9.0 g/t gold and 0.44% copper
over 12.8 metres at 1,370 metres depth, including 13.1 g/t gold and
0.62% copper over 6.4 metres at 1,328 metres depth. This
intersection demonstrates the continuity of the gold system at
depth. The drill results are consistent with previous
modelling and support positive mineral resource conversion within
the Deep East Porphyry zone. Follow-up drilling for
additional conversion, and possible expansion below this area
within the Footwall zone, is planned in the fourth quarter of
2020.
Deep holes KLUB20-561W2, KLUB20-561W3, KLUB20-561W4 and
KLUB20-561W5 are branches from the same previously reported pilot
hole KLUB20-561W1. New intersections in all four holes (see
table above) display consistent mineralization within the Deep
Porphyry zone at depths ranging from 1,200 to 1,280 metres,
highlighted by hole KLUB20-561W3, located 35 metres east of hole
KLUB20-561W1, which intersected 11.6 g/t gold and 0.48% copper over
5.6 metres at 1,227 metres depth.
Hole KLUB20-200W10 intersected the Porphyry zone
approximately 40 metres east and down-plunge of a previously
released intercept from hole KLUB20-200W9, and intersected 4.4 g/t
gold and 0.22% copper over 14.0 metres at 1,333 metres depth,
including 6.4 g/t gold and 0.38% copper over 3.5 metres at 1,328
metres depth.
The current deep conversion drilling program at Upper
Beaver was expanded in the third quarter of 2020 with the addition
of a third drill rig and will continue through the fourth quarter
and into 2021.
The shallow conversion drilling program at Upper Beaver is
targeting gold-mineralized basalts from surface to 400 metres below
surface with the aim of providing more accessible mineral resources
during the early stages of a potential mining operation.
From the shallow drilling program in the third quarter of
2020, hole KLUB20-384EXT was drilled to a depth of 444 metres to
test the South Contact zone where it intersected 65 metres of an
alteration zone with up to 2% chalcopyrite and magnetite
mineralization. The hole was highlighted by intersections of
5.5 g/t gold and 0.30% copper over 7.0 metres at 202 metres depth
and 3.5 g/t gold and 0.12% copper over 21.6 metres at 232 metres
depth, all hosted within the mafic volcaniclastic rocks.
Conversion drilling in the shallow basalts and the crown
pillar of the Upper Beaver deposit will continue in the fourth
quarter of 2020.
An increase in mineral reserves and mineral resources in
the targeted zones would enhance the prospects for development of
the project by increasing the level of confidence in key areas of
the deposit for a potential future mining operation.
Results from the 2020 exploration program will be
incorporated into an updated technical study of Upper Beaver to be
completed in 2021.
NUNAVUT
REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's Meliadine mine and Meadowbank Complex (including the
Amaruq satellite deposit) 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.
On March 19, 2020, following
the declaration of a state of public health emergency relating to
COVID-19 by the Government of Nunavut, the Company took measures to isolate
its Nunavut operations from local
communities with the aim of minimizing any risk of the virus
spreading to these communities. As part of these isolation
protocols, designed to reduce the risk to the people of
Nunavut, the Company sent all of
its Nunavut based workforce
(employees and contractors) home from the Meliadine and Meadowbank
operations as well as the exploration projects. As of the
date of this news release, there is no set date for the Nunavummiut
workforce to return to work. The Company is in regular
discussions with community leaders, the Nunavut chief medical officer and government
officials to establish the appropriate conditions to re-integrate
them on a voluntary basis and without compromising the safety of
the employees or their communities.
The Company has instituted a number of additional
protocols to ensure the continued safety of its employees and the
communities. These include:
- Isolation of the mine sites from the
communities
- All employees are on site on a voluntary
basis
- Increased screening measures for all employees before
flying to site
- A new testing facility is being set-up at the Meadowbank
site
- All employees and contractors are tested for COVID-19
prior to boarding the planes and placed in isolation on site until
the test results are received. In addition, both sites are
implementing re-testing of employees 5 days into their rotation to
detect people that may have been recently exposed, and the disease
was in incubation at time of arrival
Meadowbank Complex – Consistent Operational Performance
Since July; IVR Open Pit Start-up Ahead of Schedule
The 100% owned Meadowbank Complex is located approximately
110 kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of
the Meadowbank mine and mill and the Amaruq satellite deposit,
which is located 50 kilometres northwest of the Meadowbank
mine. The Meadowbank mine achieved commercial production in
March 2010, and most mining
activities were completed in the fourth quarter of 2019.
The Amaruq mining operation uses the existing
infrastructure at the Meadowbank minesite (mining equipment, mill,
tailings, camp and airstrip). Additional infrastructure has
also been built at the Amaruq site (truck shop, warehouse, fuel
storage and an additional camp facility). Amaruq ore is
transported using long haul off-road type trucks to the mill at the
Meadowbank site for processing. The Amaruq satellite deposit
achieved commercial production on September
30, 2019.
The second quarter of 2020 started in reduced operating
mode due to measures in response to the COVID-19 pandemic.
The open pit operation was reduced to 50% capacity in April.
Operations were gradually ramped up in May as temporary workers
were added to support mining activities. The process plant
was on care and maintenance for most of the second quarter of 2020,
re-starting on May 28, 2020, and
returned to full production levels with higher grade ore by
June 13, 2020. The reduction in
activities and suspension of the mill for most of the second
quarter of 2020 caused a substantial reduction in production and a
corresponding increase in unit costs, which results in comparisons
to the prior-year nine month period not being meaningful. In
addition, the mining operation has transitioned from the Meadowbank
deposit to the Amaruq satellite deposit, which has an impact on the
cost structure when compared to prior-year periods. The 2019
three month and nine month comparable periods also exclude
pre-commercial production, which further results in comparisons to
the prior-year periods not being meaningful.
Meadowbank Complex – Operating
Statistics*
|
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
907
|
|
364
|
Tonnes of ore milled
per day**
|
|
9,859
|
|
10,400
|
Gold grade
(g/t)
|
|
2.79
|
|
1.50
|
Gold production
(ounces)
|
|
74,921
|
|
15,736
|
Production costs per
tonne (C$)
|
|
$
|
138
|
|
$
|
76
|
Minesite costs per
tonne (C$)
|
|
$
|
139
|
|
$
|
62
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,231
|
|
$
|
1,306
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,260
|
|
$
|
1,035
|
|
*Operating
statistics for the third quarter of 2020 relate to production from
the Amaruq satellite deposit while the operating statistics for the
prior-year period relate to production from the Meadowbank
mine. In the third quarter of 2019, Amaruq had 33,134 ounces
of pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 35 days in the third quarter of
2019.
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period, primarily due to
higher maintenance costs as major work was completed on mobile
equipment and due to transportation costs as production at the
Meadowbank Complex fully transitioned to Amaruq, partially offset
by higher throughput and the timing of unsold inventory.
Production costs per ounce in the third quarter of 2020 decreased
when compared to the prior-year period due to higher gold
production, partially offset by the reasons described
above.
Minesite costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily due to
higher maintenance costs as major work was completed on mobile
equipment, and due to transportation costs as production at the
Complex fully transitioned to Amaruq, partially offset by higher
throughput. Total cash costs per ounce in the third quarter
of 2020 increased when compared to the prior-year period due to the
reasons described above, partially offset by higher gold
production.
Gold production in the third quarter of 2020 increased
when compared to the prior-year period due to higher throughput and
higher grades, which increased as expected with the deepening of
the Amaruq pit. The Amaruq site operated consistently in the
third quarter of 2020 at target operating rates, while mill plant
availability was higher than planned and mill throughput was
increased. In the prior-year period, the Meadowbank Complex
transitioned to the Amaruq satellite deposit where commercial
production was declared on September 30,
2019.
Meadowbank Complex – Operating
Statistics*
|
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,798
|
|
1,672
|
Tonnes of ore milled
per day**
|
|
6,562
|
|
7,741
|
Gold grade
(g/t)
|
|
2.64
|
|
1.92
|
Gold production
(ounces)
|
|
140,679
|
|
96,548
|
Production costs per
tonne (C$)
|
|
$
|
157
|
|
$
|
83
|
Minesite costs per
tonne (C$)
|
|
$
|
155
|
|
$
|
79
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,494
|
|
$
|
1,079
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,511
|
|
$
|
991
|
|
*Operating
statistics for the first nine months of 2020 relate to production
from the Amaruq satellite deposit while the operating statistics
for the prior-year period relate to production from the Meadowbank
mine. In the first nine months of 2019, Amaruq had 35,281
ounces of pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 216 days in the first nine months of
2019.
|
Production costs per tonne in the first nine months of
2020 increased when compared to the prior-year period primarily due
to higher contractor and maintenance costs, higher transportation
costs as production at the Meadowbank Complex transitioned to
Amaruq and lower throughput as activity levels were reduced for
most of the second quarter of 2020. Production costs per
ounce in the first nine months of 2020 increased when compared to
the prior-year period due to the reasons described above, partially
offset by higher gold production.
Minesite costs per tonne in the first nine months of 2020
increased when compared to the prior-year period primarily due to
the reasons described above. Total cash costs per ounce in
the first nine months of 2020 increased when compared to the
prior-year period due to the reasons described above, partially
offset by higher gold production.
Gold production in the first nine months of 2020 increased
when compared to the prior-year period due to higher gold grades as
the Amaruq pit deepens and higher throughput levels.
Commercial production tonnes were higher in the first nine month of
2020 compared to the prior-year period as a significant portion of
the ore processed in 2019 was pre-commercial production.
Amaruq declared commercial production on September 30, 2019.
Third Quarter 2020 Activities
Mining activities at Meadowbank began ramping up in the
second quarter of 2020 following a period of reduced activity due
to measures taken related to the COVID-19 pandemic. Open pit
production has shown consistent performance since the beginning of
July, with an average of approximately 3.3 million tonnes mined per
month in the third quarter of 2020. Mining activities are
expected to remain at similar levels in the fourth quarter of
2020.
In the fourth quarter of 2020, mined grades are expected
to improve, and the strip ratio is expected to decline to
approximately 10:1 (compared to 11:1 in the third quarter of
2020). The strip ratio in 2021 is expected to further decline
to approximately 8:1.
Water management improvements in the pit resulted in
higher drilling efficiencies in the third quarter of 2020.
Drilling activities also benefited from the commissioning of a new
remote production drill in the quarter.
This year's Caribou migration had less impact on the
operations than in previous years, largely due to a natural change
in the migration route. Given the unpredictability of the
seasonal migration, the Company continues to work with government
and local stakeholders to ensure that mining activities have a
minimal impact on Caribou migration.
Efforts are underway to improve the reliability of the
long-haul truck ("LHT") fleet. Poor road conditions have
intermittently had an impact on mechanical availability of the
fleet. Performance improved significantly in the last three
weeks of September, with haulage averaging over 11,000 tpd.
Three additional LHT's arrived by barge on the 2020 sealift,
bringing the total fleet of LHT's to 26.
A contractor fleet of three 100-tonne trucks and a
dedicated loader were deployed late in the third quarter of 2020 to
accelerate the development of the IVR pit, and provide additional
production flexibility in 2020 and 2021. Pre-commercial
production from the IVR pit in the fourth quarter of 2020 is
forecast to be approximately 11,000 ounces of gold.
Tonnage of ore milled in the third quarter of 2020 was
higher than forecast largely due to better than expected plant
availability, and favourable ore characteristics compared to
original assumptions. Mill throughput in the fourth quarter
of 2020 is expected to be slightly lower than the third quarter of
2020 due to a five day shutdown for scheduled plant
maintenance.
Over the course of the third quarter of 2020, the
maintenance backlog remained in control, and maintenance activities
will remain a key focus in the fourth quarter of 2020, along with
improving LHT availability.
In the third quarter of 2020, ramp development was
restarted at the Amaruq underground project. Development is
expected to reach the ore zone by the end of 2020, and a production
decision is expected to be made in 2021. Procurement
activities are underway for the 2021 sealift.
Exploration Update – Focus on conversion drilling of the
IVR West area
At the Amaruq satellite operation, a conversion drilling
program was completed in mid-2020 over a 330-metre-long portion of
the IVR West area, located immediately north of the Whale Tail pit
and west of the planned IVR pit, to improve confidence in the
quality of the mineral resources and potentially add them to the
mine's mineral resources. The IVR West area is the location
of discovery hole IVR13-004 (drilled in 2013) that led to the
recognition of Amaruq's potential to host economic gold
mineralization.
Meliadine Mine – Record Quarterly Gold Production; Mill
on Track for Increased Throughput Following Successful Plant
Modifications; Overburden Stripping Accelerated at Tiriganiaq
Pit
Located near Rankin Inlet,
Nunavut, Canada, the Meliadine project was acquired in
July 2010 and is Agnico Eagle's
largest gold deposit in terms of mineral resources. The
Company owns 100% of the 111,358-hectare property. In
February 2017, the Company's Board of
Directors approved the construction of the Meliadine project and
commercial production was declared on May
14, 2019.
In response to the COVID-19 pandemic, activity levels at
Meliadine were reduced from the end of March to early June.
The mill was gradually ramped-up through April and May to achieve
more normal operating levels in June. The reduction in
activities for most of the second quarter of 2020 caused a
substantial reduction in production and a corresponding increase in
unit production costs. As the Meliadine mine achieved
commercial production on May 14,
2019, the first nine months of 2019 do not represent a
comparable period.
Meliadine Mine – Operating
Statistics*
|
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
368
|
|
312
|
Tonnes of ore milled
per day
|
|
4,000
|
|
3,391
|
Gold grade
(g/t)
|
|
8.16
|
|
8.19
|
Gold production
(ounces)
|
|
94,775
|
|
78,093
|
Production costs per
tonne (C$)
|
|
$
|
244
|
|
$
|
234
|
Minesite costs per
tonne (C$)
|
|
$
|
240
|
|
$
|
246
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
706
|
|
$
|
709
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
695
|
|
$
|
746
|
|
*In the third
quarter of 2020, the Tiriganiaq open pit had 1,982 ounces of
pre-commercial gold production.
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period due to the timing
of unsold inventory and higher royalty costs related to higher
realized gold prices, partially offset by higher throughput.
Production costs per ounce in the third quarter of 2020 decreased
when compared to the prior-year period due to higher gold
production, mostly offset by the higher production costs per tonne
as described above.
Minesite costs per tonne in the third quarter of 2020
decreased when compared to the prior-year period primarily due to
higher throughput improving the mine service and mill production
costs per tonne, partially offset by higher royalty costs related
to higher realized gold prices. Total cash costs per ounce in
the third quarter of 2020 decreased when compared to the prior-year
period due to higher gold production and lower minesite costs per
tonne.
Gold production in the third quarter of 2020 increased
when compared to the prior-year period primarily due to higher
throughput as Meliadine delivered strong performance over the
quarter, reaching the 4,150 tpd mill rate following scheduled
shutdowns for corrective work and upgrades. In the third
quarter of 2019, the site was still ramping-up mining and
processing activities.
In the third quarter of 2020, Meliadine had strong
operating performance, delivering record quarterly production
despite shutdowns related to mill maintenance and upgrade
activities.
In the third quarter of 2020, underground mining
performance continued to improve with an increase in drilled ore
inventory and an increase in ore mucked as new mining equipment was
commissioned. Mining of the first two stopes in the
higher-grade RP3 horizon were
completed as planned without any increase to the ground water
inflows. This new horizon is expected to provide additional
mining flexibility for both tonnes and grade into the fourth
quarter of 2020.
In the third quarter of 2020, the mill maintained average
daily throughput of 4,150 tonnes despite several planned shutdowns
for plant modifications associated with the planned mill
expansion. Major work included replacement of the apron
feeder, filter press upgrades and modifications to the Grizzly
feeder. During the planned shutdowns the buggy bin was used
to continue to feed the mill at a reduced rate. Milling rates
are expected to average approximately 4,600 tpd in the fourth
quarter of 2020, which is in line with the Phase 2 expansion plan
outlined in the Company's news release dated February 13, 2020.
Meliadine Mine – Operating
Statistics*
|
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,012
|
|
447
|
Tonnes of ore milled
per day**
|
|
3,693
|
|
3,216
|
Gold grade
(g/t)
|
|
7.08
|
|
7.41
|
Gold production
(ounces)
|
|
224,125
|
|
109,506
|
Production costs per
tonne (C$)
|
|
$
|
243
|
|
$
|
246
|
Minesite costs per
tonne (C$)
|
|
$
|
243
|
|
$
|
252
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
814
|
|
$
|
760
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
822
|
|
$
|
776
|
|
*In the first nine
months of 2020, the Tiriganiaq open pit had 1,982 ounces of
pre-commercial gold production. In the first nine months of
2019, Meliadine had 47,281 ounces of pre-commercial gold
production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 139 days in the first nine months of
2019.
|
Production costs per tonne in the first nine months of
2020 were C$243. Production
costs per ounce in the first nine months of 2020 were $814. Minesite costs per tonne in the first
nine months of 2020 were C$243.
Total cash costs per ounce in the first nine months of 2020 were
$822. Gold production in the
first nine months of 2020 was 224,125 ounces.
At the Tiriganiaq open pit, overburden stripping has been
accelerated with a contractor to provide additional mining
flexibility for both tonnes and grade in 2021. Total
pre-commercial gold production at Tiriganiaq in 2020 is expected to
be approximately 11,200 ounces.
Water Management
Saline Water Discharge
The Company received final approval on June 24, 2020 from the Nunavut Impact Review
Board ("NIRB") for a modification to the saline water discharge
permit to increase saline water discharge from the Meliadine
underground operation to Melvin Bay in Rankin Inlet from 800 cubic metres per day to
1,600 cubic metres per day. The discharge occurred during the
open water season, commencing on August 10,
2020 and stopping on October 8,
2020.
Permitting Update for Saline Water Discharge
Line
On August 27, 2020, the
Company received conformity of the FEIS Addendum from the NIRB,
plus additional guidance on the process for the continuation of the
application. On September 28,
2020, the Company received information requests ("IR") from
the intervenors plus comments from individuals. The Company
responded to the IR's on October 13,
2020, and all of the information has been filed with the
NIRB Public Registry.
The Company is now in the technical phase of the
application and the deadline for technical comments to be received
is November 12, 2020. The
Company's response to these comments is expected to be provided by
November 18, 2020, following which a
technical meeting is scheduled to occur on November 23 and 24, 2020. The roundtable
with the key communities of interest is scheduled to occur on
November 25, 2020 and the pre-hearing
conference is scheduled to occur on November
26, 2020. The final hearing is expected to occur in
February 2021.
The Company forecasts that it has adequate surface storage
capacity for saline water until 2023.
Meliadine Water License Amendment
The Company submitted the application for a Water License
Amendment on August 27, 2020.
The application includes a long-term increase of total dissolved
solids ("TDS") plus some general activities. This application
also includes an alternative to divert surface contact water to the
discharge waterline to provide additional flexibility to the
operation. The Company expects to respond to technical
comments from regulators by November 23,
2020, following which a technical meeting is scheduled to
occur on November 30 and December 1, 2020. The Company expects to
receive the water license amendment approval in May 2021.
For all applications, the Company is committed to
continuing to pursue consultation and collaboration opportunities
with the local community and Nunavut groups and appreciates the efforts
made by all to engage with Agnico Eagle in light of the challenges
that have been caused by COVID-19.
Exploration Update – Conversion Drilling at Discovery
Satellite Deposit on Track to Add to Mineral Reserves at
Year-End
A drilling campaign was completed mid-year at the
Discovery satellite gold deposit, located 17 km east-southeast of
Tiriganiaq, which was last drilled in 2014. At the end of the
third quarter of 2020, a total of 11,150 metres had been drilled at
Discovery for conversion, geotechnical and exploration
purposes.
The aim of the 2020 exploration program at Discovery is to
generate sufficient information to convert portions of the
deposit's indicated mineral resources and inferred mineral
resources into mineral reserves by year-end 2020, which will be
incorporated into a preliminary technical study of Discovery to be
completed in early 2021.
Results from the current program are confirming the
Company's previous geological interpretation of the deposit and
suggest the potential for a satellite operation at Discovery that
would provide ore to the existing mill at Meliadine.
Elsewhere on the Meliadine property during 2020,
exploration drilling in the deeper central and western portions of
the Tiriganiaq deposit has confirmed the presence of mineralized
iron formations and quartz veins at depth, and conversion drilling
at the mine's Wesmeg deposit has confirmed the presence of inferred
mineral resources.
FINLAND AND
SWEDEN
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. Exploration activities continue to
expand the mineral reserves and mineral resources at the Kittila
mine and the Company has approved an expansion to add an
underground shaft and increase expected mill throughput by 25% to
2.0 million tonnes per annum. In Sweden, the Company has a 55% interest in the
Barsele exploration project.
Unlike other jurisdictions in which the Company operates,
Finland did not mandate the
suspension of business activities to help manage the COVID-19
pandemic. In the second and third quarters of 2020, the
Kittila mine operated at normal levels with new hygiene and safety
protocols in place.
Kittila – Strong Underground Production Continues; Mill
Expansion Progressing Ahead of Schedule; Sisar Drilling Shows
Potential to Extend Mineralization Laterally and at
Depth
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, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
429
|
|
507
|
Tonnes of ore milled
per day
|
|
4,663
|
|
5,511
|
Gold grade
(g/t)
|
|
4.38
|
|
4.23
|
Gold production
(ounces)
|
|
53,149
|
|
61,343
|
Production costs per
tonne (EUR)
|
|
€
|
87
|
|
€
|
79
|
Minesite costs per
tonne (EUR)
|
|
€
|
83
|
|
€
|
78
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
861
|
|
$
|
725
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
813
|
|
$
|
725
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period due to lower
throughput levels as the mill was shutdown on September 22, 2020 to complete the mill expansion
tie-in and due to cost pressures in contracted development and
hauling, higher ground support requirements and higher royalty
payments related to higher realized gold prices. Production
costs per ounce in the third quarter of 2020 increased when
compared to the prior-year period due to the reasons described
above, the strengthening of the Euro and lower gold production.
Minesite costs per tonne in the third quarter of 2020 increased
when compared to the prior-year period primarily due to lower
throughput levels as the mill was shut down on September 22, 2020 to complete the mill expansion
tie-in, and also due to cost pressures in contracted development
and hauling, higher ground support requirements and higher royalty
payments related to higher realized gold prices. Total cash
costs per ounce in the third quarter of 2020 increased when
compared to the prior-year period due to the reasons described
above, the strengthening of the Euro and lower gold
production.
Gold production in the third quarter of 2020 decreased
when compared to the prior-year period primarily due to lower
throughput, partially offset by higher gold grades as anticipated
by the mining sequence. The Kittila operation continued
delivering strong performance in the third quarter of 2020 but the
mill was shut down as planned on September
22, 2020 to complete the mill expansion tie-in. Of
note, in the third quarter of 2019, the Kittila mill achieved an
all-time high throughput and gold production.
Kittila Mine – Operating
Statistics
|
|
|
|
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
1,349
|
|
|
1,123
|
Tonnes of ore milled
per day
|
|
|
4,923
|
|
|
4,114
|
Gold grade
(g/t)
|
|
|
4.33
|
|
|
4.16
|
Gold production
(ounces)
|
|
|
163,069
|
|
|
130,756
|
Production costs per
tonne (EUR)
|
|
€
|
86
|
|
€
|
83
|
Minesite costs per
tonne (EUR)
|
|
€
|
82
|
|
€
|
75
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
812
|
|
$
|
796
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
776
|
|
$
|
728
|
Production costs per tonne in the first nine months of
2020 increased when compared to the prior-year period primarily due
to cost pressures in contracted development and hauling, higher
ground support requirements, higher royalty payments related to
higher realized gold prices and the timing of inventory, partially
offset by higher throughput levels. Production costs per
ounce in the first nine months of 2020 increased when compared to
the prior-year period due to the reasons described above, partially
offset by higher gold production from higher throughput levels and
higher grades.
Minesite costs per tonne in the first nine months of 2020
increased when compared to the prior-year period due to cost
pressures in contracted development and hauling, higher ground
support requirements, and higher royalty payments related to higher
realized gold prices, partially offset by higher throughput
levels. Total cash costs per ounce in the first nine months
of 2020 increased when compared to the prior-year period due to the
reasons described above, partially offset by higher gold
production.
Gold production in the first nine months of 2020 increased
when compared to the prior-year period as Kittila operated at close
to record quarterly production levels in the second and third
quarters of 2020, while a scheduled 58-day mill shutdown was
carried out in the second quarter of 2019 to allow for full
autoclave relining, and due to higher grades as anticipated by the
mining sequence.
The Kittila mine continued delivering strong performance
in the third quarter of 2020 and exceeded the forecasted tonnage
and gold production in the underground mine and mill. The
mill expansion is progressing ahead of schedule and the final
tie-in shutdown started on September
22, 2020. The shutdown was completed ahead of schedule
on October 22, 2020. The
commissioning of the expanded mill is ongoing. With the
underground mine ready to support a production profile of 2.0
million tonnes per annum, Kittila production flexibility has
significantly improved for the fourth quarter of 2020 and for
2021.
Two strategically important environmental construction
projects, the NP4 tailings pond and the discharge pipeline, were
accelerated and will be ready for commissioning in the fourth
quarter of 2020. The completion of these projects are part of
the plan to increase the mill production rate to 2.0 million tonnes
per annum.
Work continued on the Kittila shaft project in the third
quarter of 2020, though at a lower rate than forecast.
Project execution remains challenging under COVID-19 restrictions
and productivity is lower than planned. Local resources have
been added to the shaft sinking contractor (Procon) team and
additional residence permit applications for Procon employees are
in process. Because of these challenges, commissioning is now
expected to be completed in the first half of 2022. With the
delay in construction, combined with higher than expected costs
from the shaft sinking, the rock handling system and the contracted
underground development group, the Kittila expansion project is now
forecast to cost between 190 to 200 million
euros (previous forecast was 170
million euros).
Drilling Confirms and Extends Main and Sisar Zones in
Suuri, Roura and Rimpi
Areas
Exploration at the Kittila mine is focused on extending
the Main and Sisar zones northward, southward and at depth in the
Suuri, Roura and Rimpi areas to increase the mineral reserves in
the large orebody. Sisar is subparallel to and 50 to 300
metres east of the main Kittila mineralization.
As of December 31, 2019,
Kittila is estimated to contain proven and probable mineral
reserves of 4.1 million ounces of gold (28.9 million tonnes grading
4.40 g/t gold). Measured and indicated mineral resources are
estimated to be 1.5 million ounces of gold (18.1 million tonnes
grading 2.60 g/t gold) and inferred mineral resources are estimated
to be 1.7 million ounces of gold (13.8 million tonnes grading 3.90
g/t gold). See the Company's news release dated February 13, 2020 for a detailed description of
mineral reserves and mineral resources at December 31, 2019.
Results from the exploration program at Kittila were last
reported in the Company's news release dated July 29, 2020.
Selected recent drill results from the Kittila mine are
set out in the table below, and drill hole collar coordinates are
in a table in the Appendix. Pierce points are shown on the
Kittila – Composite Longitudinal Section. All intercepts
reported for the Kittila mine show uncapped gold grades over
estimated true widths, based on a current geological interpretation
that is being updated as new information becomes available with
further drilling.
Selected recent drill results from the Main and Sisar
zones in the Suuri, Roura and Rimpi areas at the Kittila
mine
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
RIE19-702H
|
Sisar Deep
|
965.0
|
971.8
|
1,626
|
4.4
|
7.3
|
RIE19-702J
|
Main Rimpi
|
634.0
|
642.0
|
1,413
|
5.3
|
2.8
|
RUG20-510
|
Main Roura
|
188.0
|
197.1
|
987
|
8.7
|
5.9
|
RUG20-515
|
Main Roura
|
139.5
|
143.5
|
930
|
3.8
|
3.5
|
RUG20-516
|
Main Roura
|
132.0
|
142.0
|
961
|
9.8
|
5.0
|
RUG20-517
|
Main Roura
|
147.0
|
159.0
|
941
|
11.1
|
7.7
|
RUG20-518
|
Main Roura
|
142.4
|
156.0
|
986
|
12.8
|
6.0
|
including
|
Main Roura
|
149.0
|
156.0
|
986
|
6.6
|
8.5
|
and
|
Sisar Top
|
203.0
|
215.0
|
982
|
11.3
|
7.3
|
RUG20-519
|
Main Roura
|
138.0
|
153.0
|
1,001
|
14.2
|
6.4
|
and
|
Sisar Top
|
209.0
|
213.3
|
1,002
|
4.1
|
9.2
|
RIE20-603
|
Main Rimpi
|
43.0
|
63.0
|
1,005
|
19.4
|
5.1
|
including
|
|
43.0
|
49.0
|
1,006
|
5.8
|
7.6
|
and
|
Main Rimpi
|
72.0
|
77.0
|
1,004
|
4.9
|
6.9
|
RIE20-605
|
Main Rimpi
|
82.0
|
86.0
|
1,041
|
2.8
|
3.8
|
and
|
Main Rimpi
|
104.0
|
109.2
|
1,050
|
3.6
|
3.5
|
RIE20-606
|
Main Rimpi
|
80.3
|
96.0
|
1,059
|
10.2
|
6.1
|
and
|
Main Rimpi
|
103.0
|
109.0
|
1,069
|
4.0
|
7.8
|
[Kittila Mine – Composite Longitudinal
Section]
Conversion drilling in the Roura area is continuing with
one drill rig. Highlights include holes RUG20-510, RUG20-515,
RUG20-516, RUG20-517 and RUG20-519, which showed high gold grades
over significant widths in the Main Zone between approximately 930
and 1,000 metres depth, confirming the Main Zone mineral reserves
within the Roura area (see table above). Hole RUG20-519 also
intersected the Sisar Zone, returning 9.2 g/t over 4.1 metres at
1,002 metres depth. Hole RUG20-518 intersected two lenses:
6.0 g/t gold over 12.8 metres at 986 metres depth, including 8.5
g/t gold over 6.6 metres at 986 metres depth in the Main Zone; and
7.3 g/t gold over 11.3 metres at 982 metres depth at the top of the
Sizar Zone. These intercepts have confirmed Main Zone and
Sisar Zone mineral reserves and mineral resources in this portion
of the Roura area.
Exploration drilling into the Main and Sisar zones in the
Rimpi area is ongoing with two drill rigs. Hole RIE19-702J
intersected 2.8 g/t gold over 5.3 metres at 1,413 metres depth,
confirming the Main Zone mineralization at this depth. Hole
RIE19-702H intersected the Sisar Zone, returning 7.3 g/t over 4.4
metres at 1,626 metres depth and confirming the extension of the
Sisar Zone mineralization northward at depth in the Rimpi
area.
Drilling in the Rimpi area at shallower depths between
approximately 1,005 and 1,070 metres showed positive results and
confirmed the Main Zone mineral resources and mineral reserves,
with hole RIE20-603 intersecting 5.1 g/t gold over 19.4 metres at
1,005 metres depth, including 7.6 g/t gold over 5.8 metres at 1,005
metres depth, and hole RIE20-606 intersecting 6.1 g/t gold over
10.2 metres at 1,059 metres depth.
These recent intercepts of the Sisar Zone in both the
Roura and the Rimpi areas show the potential to significantly
expand the footprint of the Sisar Zone laterally to the north and
to the south, and at depth where the zone remains open. The
growing mineral resources in the Sisar Zone have the potential to
provide added flexibility in mining as the Company progresses
deeper at Kittila, offering a parallel zone to mine adjacent to the
Main Zone in the Rimpi and Roura areas.
In 2020, the Company expects to spend $11.8 million for work that will include 58,000
metres of drilling focused on the Main Zone in the Roura and Rimpi
areas as well as the Sisar Zone. The drilling includes 46,000
metres of capitalized conversion drilling at the mine and 12,000
metres of expensed regional exploration drilling on targets beyond
the current mineral resource area.
The primary goal of this program is to further explore
Kittila's mineral reserve and mineral resource potential and to
demonstrate the economic potential of the Sisar Zone as a new
mining horizon at Kittila.
The Company anticipates that this year's drilling program
will replace the mineral reserves mined at Kittila in 2020 in the
mineral reserves and mineral resources estimated at December 31, 2020.
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.
On April 2, 2020, the
Government of Mexico mandated that
all non-essential businesses, including mining and exploration,
suspend operations (the "Decree"). Pursuant to the Decree,
mining and exploration activities at the Company's Mexican
operations and exploration site (Pinos
Altos, Creston Mascota, La India and Santa Gertrudis) ramped down activities in an
orderly fashion while maintaining the safety of the employees and
the sustainability of the infrastructure. Given the ore
stacked on the leach pads in previous months, residual leaching
continued at Creston Mascota and La India during the suspension
period. On May 14, 2020, the
Government of Mexico designated
mining as an essential activity and permitted the full restart of
mining and exploration activities. The Company's mining
operations in Mexico resumed some
pre-production activities on May 18,
2020 with employees being gradually reintegrated.
Operations resumed fully on June 1,
2020.
Pinos Altos – Changes
in Mining Sequence Affected Grades in the Third Quarter;
Underground Drilling Extends Lateral Continuity of Cubiro
Deposit
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, 2020
|
|
September 30, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
558
|
|
|
519
|
Tonnes of ore
processed per day
|
|
|
6,065
|
|
|
5,641
|
Gold grade
(g/t)
|
|
|
1.89
|
|
|
2.22
|
Gold production
(ounces)
|
|
|
30,937
|
|
|
34,832
|
Production costs per
tonne
|
|
$
|
59
|
|
$
|
67
|
Minesite costs per
tonne
|
|
$
|
61
|
|
$
|
67
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,071
|
|
$
|
995
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
677
|
|
$
|
745
|
Production costs per tonne in the third quarter of 2020
decreased when compared to the prior-year period primarily due to
the weakening of the Mexican peso and higher throughput levels,
partially offset by higher ground support requirements and higher
royalty payments related to higher realized gold and silver
prices. Production costs per ounce in the third quarter of
2020 increased when compared to the prior-year period due to lower
gold production, partially offset by the lower production costs as
described above.
Minesite costs per tonne in the third quarter of 2020
decreased when compared to the prior-year period due to the
weakening of the Mexican peso and higher throughput levels,
partially offset by higher ground support requirements and higher
royalty payments related to higher realized gold and silver
prices. Total cash costs per ounce in the third quarter of
2020 decreased when compared to the prior-year period due to the
reasons described above and higher by-product revenues from higher
realized silver prices, partially offset by lower gold
production.
Gold production in the third quarter of 2020 decreased
when compared to the prior-year period primarily due to lower
grades related to the adjustment of the Cerro Colorado mining sequence to manage
challenging ground conditions.
Pinos Altos Mine – Operating
Statistics
|
|
|
|
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
1,252
|
|
|
1,495
|
Tonnes of ore
processed per day
|
|
|
4,569
|
|
|
5,476
|
Gold grade
(g/t)
|
|
|
2.08
|
|
|
2.62
|
Gold production
(ounces)
|
|
|
78,127
|
|
|
119,302
|
Production costs per
tonne
|
|
$
|
70
|
|
$
|
64
|
Minesite costs per
tonne
|
|
$
|
64
|
|
$
|
65
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,117
|
|
$
|
801
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
740
|
|
$
|
603
|
Production costs per tonne in the first nine months of
2020 increased when compared to the prior-year period primarily due
to higher costs associated with open pit mining of the Sinter pit,
higher underground development and ground support requirements,
lower throughput levels, higher royalty payments related to higher
realized gold and silver prices and by the timing of inventory,
partially offset by the weakening of the Mexican peso.
Production costs per ounce in the first nine months of 2020
increased when compared to the prior-year period due to the reasons
described above and lower gold production.
Minesite costs per tonne in the first nine months of 2020
were essentially the same when compared to the prior-year period
due to higher costs associated with open pit mining of the Sinter
pit, higher underground development and ground support
requirements, lower throughput levels, and higher royalty payments
related to higher realized gold and silver prices, partially offset
by the weakening of the Mexican peso. Total cash costs per
ounce in the first nine months of 2020 increased when compared to
the prior-year period due to the reasons described above and lower
gold production.
Gold production in the first nine months of 2020 decreased
when compared to the prior-year period due to lower throughput
levels related to the temporary suspensions of operations in the
second quarter of 2020 and due to lower grades related to the
adjustment of the Cerro Colorado
mining sequence to manage challenging ground conditions. The
reconditioning activities in the area affected remain on
track. Year to date, 1,542 metres of development have been
rehabilitated, of which 508 metres were done during the third
quarter of 2020, and the reconditioning is expected to be completed
in the fourth quarter of 2020. An external group of experts
are currently reviewing the additional ground support installation
and requirements. The stopes that had been planned to be
mined in 2020 but that were unavailable are expected to be mined in
future years.
A revised mining plan has been adopted which balances a
reduced tonnage from Cerro
Colorado with increased production from other zones.
Underground development has been accelerated in those alternate
mining areas to match the revised mining plan for 2020 and prepare
for 2021 (1,400 additional metres have been completed from the
1,805 metres planned for 2020).
At the Cubiro deposit, located 9 kilometres northwest of
the Pinos Altos mine site, a total
of 63 metres of ramp development were developed in July, bringing
total underground development to 2,461 metres completed
to-date. Subsequently, preparation activities to undertake
the raise-boring of the ventilation raise started. The
14-foot diameter raise is expected to be completed in late December
2021. The Company is expecting to declare mineral reserves at
Cubiro at the end of year.
At the Sinter deposit, located approximately 2 kilometres
northwest of the Pinos Altos mine,
the development of the underground mine continues and will
contribute ore to Pinos Altos mill
in the fourth quarter of 2020. The construction of the
cemented rock-fill plant was deferred to 2021 and production is
expected to begin in the fourth quarter of 2020 as planned.
Once in production, the underground mine will provide some
additional flexibility to the Pinos
Altos operation.
High-Grade Gold Mineralization at Cubiro Deposit Confirmed
and Extended by Underground Drilling; Reyna de Plata and Reyna East
Zones Return High-Grade Gold and Silver at Shallow
Depths
Exploration in the third quarter of 2020 focused on three
targets: the Cubiro deposit; the Reyna de Plata Zone, located 1.5
kilometres northeast of the mine; and the Reyna East Zone, located
3 kilometres east-northeast of the mine.
The Company drilled 74 exploration holes (12,553 metres)
on the Pinos Altos property in the
third quarter of 2020, including 46 holes (8,665 metres) at Cubiro,
24 holes (3,172 metres) at Reyna de Plata and 3 holes (408 metres)
at Reyna East.
Exploration results from Pinos
Altos were last reported in the Company's news release dated
July 29, 2020.
As of December 31, 2019, the
Cubiro deposit was estimated to contain indicated mineral resources
of 212,000 ounces of gold and 1.4 million ounces of silver (2.4
million tonnes grading 2.78 g/t gold and 18.38 g/t silver) and
inferred mineral resources of 136,000 ounces of gold and 912,000
ounces of silver (1.4 million tonnes grading 2.95 g/t gold and
19.84 g/t silver), all at underground depths. The gold grades
are significantly higher at Cubiro than on average at the
Pinos Altos property.
As of December 31, 2019, the
Reyna de Plata deposit (including the Reyna East Zone) was
estimated to contain probable mineral reserves (open pit) of 64,000
ounces of gold and 2.0 million ounces of silver (2.1 million tonnes
grading 0.96 g/t gold and 29.86 g/t silver), indicated mineral
resources (open pit and underground) of 159,000 ounces of gold and
4.3 million ounces of silver (4.4 million tonnes grading 1.12 g/t
gold and 30.16 g/t silver) and inferred mineral resources (open pit
and underground) of 121,000 ounces of gold and 3.0 million ounces
of silver (2.6 million tonnes grading 1.43 g/t gold and 34.89 g/t
silver).
The above mineral reserves and mineral resources are
included in the Pinos Altos mine's
mineral reserve and mineral resource estimate.
Selected recent drill results from the Cubiro deposit and
the Reyna de Plata and Reyna East zones at the Pinos Altos mine are set out in the table
below. The collars are located on the Pinos Altos Mine –
Local Geology Map, the pierce points for Cubiro are located on the
Cubiro – Composite Longitudinal Section and drill collar
coordinates are in the Appendix. All intercepts reported for
Cubiro, Reyna de Plata and Reyna East show uncapped and capped gold
and silver grades over estimated true widths, based on a
preliminary geological interpretation that will be updated as new
information becomes available with further drilling.
Selected recent exploration drill results from the
Cubiro deposit and the Reyna de Plata and Reyna East zones at the
Pinos Altos mine
Drill Hole
|
Deposit
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)*
|
Silver grade
(g/t)
(uncapped)
|
Silver
grade (g/t)
(capped)*
|
CBUG20-035
|
Cubiro
|
52.2
|
55.0
|
251
|
2.8
|
4.7
|
4.7
|
27
|
27
|
CBUG20-036
|
Cubiro
|
63.4
|
69.6
|
215
|
4.4
|
5.2
|
3.0
|
15
|
15
|
and
|
|
76.8
|
89.5
|
214
|
9.0
|
2.0
|
2.0
|
30
|
30
|
CBUG20-037
|
Cubiro
|
117.6
|
135.2
|
122
|
17.2
|
2.3
|
2.3
|
11
|
11
|
including
|
|
125.7
|
133.0
|
127
|
7.2
|
3.2
|
3.2
|
16
|
16
|
CBUG20-040
|
Cubiro
|
201.0
|
223.2
|
116
|
22.2
|
2.7
|
2.1
|
28
|
28
|
including
|
|
201.0
|
207.7
|
123
|
6.7
|
5.5
|
3.7
|
65
|
65
|
CBUG20-042
|
Cubiro
|
50.0
|
60.4
|
192
|
6.6
|
5.0
|
4.0
|
29
|
29
|
CBUG20-045
|
Cubiro
|
121.0
|
124.4
|
286
|
3.4
|
4.1
|
4.1
|
5
|
5
|
CBUG20-048
|
Cubiro
|
224.3
|
247.7
|
90
|
14.4
|
3.4
|
3.4
|
17
|
17
|
including
|
|
229.3
|
235.2
|
94
|
3.7
|
10.1
|
5.7
|
38
|
38
|
CBUG20-049
|
Cubiro
|
255.0
|
261.0
|
77
|
3.4
|
16.1
|
8.1
|
119
|
119
|
CBUG20-050
|
Cubiro
|
164.3
|
168.5
|
198
|
3.6
|
3.9
|
3.9
|
21
|
21
|
CBUG20-054
|
Cubiro
|
119.9
|
123.0
|
288
|
4.0
|
3.4
|
3.4
|
5
|
5
|
CBUG20-057
|
Cubiro
|
201.2
|
208.3
|
114
|
6.2
|
4.4
|
4.3
|
23
|
23
|
CBUG20-058
|
Cubiro
|
79.3
|
85.2
|
196
|
5.2
|
10.2
|
2.6
|
24
|
20
|
RP20-276
|
Reyna East
|
60.5
|
64.6
|
54
|
4.0
|
5.2
|
5.2
|
39
|
39
|
RP20-277
|
Reyna East
|
81.0
|
91.5
|
77
|
9.5
|
5.4
|
4.9
|
41
|
41
|
RP20-278
|
Reyna East
|
38.3
|
41.0
|
39
|
2.6
|
3.5
|
3.2
|
31
|
31
|
RP20-279
|
Reyna East
|
44.3
|
50.5
|
49
|
5.9
|
2.3
|
2.3
|
241
|
168
|
RP20-280
|
Reyna East
|
19.0
|
26.0
|
30
|
6.6
|
1.4
|
1.4
|
120
|
100
|
RP20-287
|
Reyna de
Plata
|
18.0
|
26.7
|
21
|
8.4
|
1.8
|
1.8
|
19
|
19
|
RP20-289
|
Reyna de
Plata
|
61.5
|
67.0
|
88
|
4.8
|
3.9
|
2.5
|
17
|
17
|
RP20-290
|
Reyna de
Plata
|
16.0
|
25.5
|
23
|
8.9
|
2.3
|
2.3
|
94
|
94
|
including
|
|
18.0
|
20.8
|
23
|
2.6
|
2.7
|
2.7
|
111
|
111
|
RP20-294
|
Reyna de
Plata
|
138.8
|
146.3
|
144
|
6.5
|
2.1
|
2.1
|
25
|
25
|
RP20-295
|
Reyna de
Plata
|
184.0
|
197.2
|
168
|
10.9
|
1.9
|
1.6
|
15
|
15
|
including
|
|
189.8
|
194.4
|
168
|
3.9
|
4.9
|
3.8
|
32
|
32
|
RP20-296
|
Reyna de
Plata
|
126.8
|
159.0
|
150
|
27.9
|
1.1
|
1.1
|
18
|
18
|
including
|
|
126.8
|
130.2
|
127
|
3.0
|
1.7
|
1.7
|
27
|
27
|
including
|
|
149.3
|
158.0
|
158
|
7.6
|
2.3
|
2.3
|
26
|
26
|
|
Cut-off value 0.30 g/t gold, maximum 3.0 metres
internal dilution.
|
*Holes at the Cubiro satellite deposit use a capping
factor of 10 g/t gold and 200 g/t silver.
|
[Pinos Altos Mine– Local
Geology Map]
[Cubiro– Composite
Longitudinal Section]
The Cubiro deposit is made up of multiple gold and silver
bearing white quartz-calcite veins (with barite and minor
sulphides) up to 30 metres wide that strike northwest for
approximately 1,100 metres, and dip steeply to the southwest.
These veins are enveloped in wider swarm-like vein systems,
including breccias and stockworks, and demonstrate pinch-and-swell
characteristics. The Cubiro deposit remains open in all
directions.
In the third quarter of 2020, drilling was carried out
from underground platforms at the northwestern limits of the ramp,
targeting the central portion of the Cubiro structure with the aim
of extending and validating the lateral continuity of previously
reported wide, high-grade gold and silver intercepts.
The drilling has extended the high-grade portion of the
Cubiro structure to 400 metres along strike and to an average of
175 metres in vertical extent above the ramp. There are
indications that mineralization may reopen at depth below the
current ramp; this is expected to be investigated during the fourth
quarter.
In the third quarter of 2020, drilling extended Cubiro's
high-grade core at ramp level by 75 metres to the northwest, with
highlights within this extension that included: hole CBUG20-045,
which intersected 4.1 g/t gold and 5 g/t silver over 3.4 metres at
286 metres depth in the northwesternmost hole drilled to date at
ramp level; hole CBUG20-035, which intersected 4.7 g/t gold and 27
g/t silver over 2.8 metres at 251 metres depth; and hole
CBUG20-054, which intersected 3.4 g/t gold and 5 g/t silver over
4.0 metres at 288 metres depth.
Additional holes intersected the high-grade structure
approximately 40 to 80 metres above the ramp level at its most
northwestern extent over an approximate 175-metre strike
length. Highlights included, from northwest to southeast:
hole CBUG20-057, which intersected 4.3 g/t gold and 23 g/t silver
over 6.2 metres at 114 metres depth; hole CBUG20-050, which
intersected 3.9 g/t gold and 21 g/t silver over 3.6 metres at 198
metres depth; hole CBUG20-042, which intersected 4.0 g/t gold and
29 g/t silver over 6.6 metres at 192 metres depth; and hole
CBUG20-037, which intersected 2.3 g/t gold and 11 g/t silver over
17.2 metres at 122 metres depth.
The high-grade structure was further intersected
approximately 130 to 200 metres above the latest ramp development
and within 125 metres from surface. Highlights include: hole
CBUG20-049, which returned the highest gold and silver grades over
significant widths recorded at Cubiro in the third quarter of 2020,
intersecting 8.1 g/t gold and 119 g/t silver over 3.4 metres at 77
metres depth; hole CBUG20-048, which intersected 3.4 g/t gold and
17 g/t silver over 14.4 metres at 90 metres depth, including 5.7
g/t gold and 38 g/t silver over 3.7 metres at 94 metres depth; and
hole CBUG20-040, which intersected 2.1 g/t gold and 28 g/t silver
over 22.2 metres at 116 metres depth, including 3.7 g/t gold and 65
g/t silver over 6.7 metres at 123 metres depth.
Work at Cubiro in the fourth quarter of 2020 will focus on
continued infill drilling as well as mineral resource expansion
drilling to the northwest and down dip in tandem with ramp
development.
In response to the continued positive exploration results,
the drilling program at Cubiro for 2020 has been expanded to 18,000
metres from an originally planned 10,000 metres, with 10,902 metres
drilled in the first nine months of 2020. Another 200 metres
of ramp advancement towards the northwest is planned for the fourth
quarter of 2020.
These latest results will be incorporated into an initial
mineral reserve estimate for Cubiro at year-end that, combined with
other developments on the property, are expected to replace ore
mined at Pinos Altos in
2020.
Successful mineral resource expansion and conversion at
Cubiro could potentially lead to underground mine development that
would contribute additional ore to be processed at the existing
Pinos Altos milling
facility.
At Reyna de Plata, exploration drilling in the third
quarter of 2020 was comprised mainly of infill drilling to confirm
grades within a potential open pit outline and deeper drilling to
test the continuity of mineralization down-dip beneath the pit
outline to 250 metres below surface as a potential underground
mining opportunity.
At shallow depths, hole RP20-287 intersected 1.8 g/t gold and 19 g/t
silver over 8.4 metres at 21 metres depth in the northwestern end
of the 1.5-kilometre long Reyna de Plata Zone; hole RP20-289 intersected 2.5 g/t gold and 17 g/t
silver over 4.8 metres at 88 metres depth in the centre of the
structure; and approximately 300 metres east of hole RP20-289, hole RP20-290 intersected 2.3 g/t gold and 94 g/t
silver over 8.9 metres at 23 metres depth, including 2.7 g/t gold
and 111 g/t silver over 2.6 metres at 23 metres depth.
At greater depths in the northwestern portion of the Reyna
de Plata Zone, hole RP20-294
intersected 2.1 g/t gold and 25 g/t silver over 6.5 metres at 144
metres depth; approximately 200 metres to the southeast of hole
RP20-294, hole RP20-295 intersected 1.6 g/t gold and 15 g/t
silver over 10.9 metres at 168 metres depth, including 3.8 g/t gold
and 32 g/t silver over 3.9 metres at 168 metres depth; and hole
RP20-296 intersected 1.1 g/t gold and
18 g/t silver over 27.9 metres at 150 metres depth, including 2.3
g/t gold and 26 g/t silver over 7.6 metres at 158 metres
depth.
At Reyna East, shallow infill drilling in the third
quarter of 2020 over an approximate 400-metre-long middle portion
of the zone returned high-grade highlights such as: hole
RP20-279, which intersected 2.3 g/t
gold and 168 g/t silver over 5.9 metres at 49 metres depth; hole
RP20-280, which intersected 1.4 g/t
gold and 100 g/t silver over 6.6 metres at 30 metres depth; and
hole RP20-277, which intersected 4.9
g/t gold and 41 g/t silver over 9.5 metres at 77 metres
depth.
Step-out hole RP20-276,
drilled approximately 600 metres southeast of hole RP20-277 at the southeastern end of the fault
structure hosting the Reyna East Zone, intersected 5.2 g/t gold and
39 g/t silver over 4.0 metres at 54 metres depth.
Exploration drilling will continue at Reyna de Plata in
the fourth quarter of 2020 and the mineral reserve and mineral
resource estimate will be updated at year-end.
Creston Mascota – Mining Activities Completed; Residual
Leaching to Continue into 2021
The Creston Mascota heap leach open pit mine has been
operating as a satellite operation to the Pinos Altos mine since late 2010.
Creston Mascota open pit mineral reserves were depleted during the
third quarter of 2020, while gold leaching is expected to continue
through to the first quarter of 2021.
Creston Mascota Mine – Operating
Statistics
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
188
|
|
|
284
|
Tonnes of ore
processed per day
|
|
|
2,043
|
|
|
3,087
|
Gold grade
(g/t)
|
|
|
1.19
|
|
|
0.78
|
Gold production
(ounces)
|
|
|
6,567
|
|
|
9,596
|
Production costs per
tonne
|
|
$
|
40
|
|
$
|
30
|
Minesite costs per
tonne
|
|
$
|
40
|
|
$
|
31
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,155
|
|
$
|
890
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
771
|
|
$
|
668
|
Production costs per tonne in the third quarter of 2020
increased when compared to the prior-year period primarily due to
lower ore stacked at the heap leach as the Bravo pit was depleted during the quarter and
due to additional costs to mill high grade ore from the
Bravo pit at the Pinos Altos mill, partially offset by the
weakening of the Mexican peso. Production costs per ounce in
the third quarter of 2020 increased when compared to the prior-year
period due to lower gold production and the reasons described
above.
Minesite costs per tonne in the third quarter of 2020
increased when compared to the prior-year period due to the reasons
described above. Total cash costs per ounce in the third
quarter of 2020 increased when compared to the prior-year period
due to lower gold production and the reasons described
above.
Gold production in the third quarter of 2020 decreased
when compared to the prior-year period due to less ore stacked at
the heap leach as the Bravo pit
was depleted during the quarter, partially offset by higher
grades.
Creston Mascota Mine – Operating
Statistics
|
|
|
|
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
526
|
|
|
973
|
Tonnes of ore
processed per day
|
|
|
1,920
|
|
|
3,564
|
Gold grade
(g/t)
|
|
|
2.00
|
|
|
1.93
|
Gold production
(ounces)
|
|
|
34,397
|
|
|
41,461
|
Production costs per
tonne
|
|
$
|
55
|
|
$
|
28
|
Minesite costs per
tonne
|
|
$
|
54
|
|
$
|
28
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
844
|
|
$
|
660
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
565
|
|
$
|
468
|
Production costs per tonne in the first nine months of
2020 increased when compared to the prior-year period due to the
timing of inventory on the heap leach, less ore stacked at the heap
leach mostly related to the temporary suspension of operations in
the second quarter of 2020, the depletion of the Bravo pit in the third quarter of 2020 and
additional costs to mill high grade ore from the Bravo pit at the Pinos Altos mill, partially offset by the
weakening of the Mexican peso. Production costs per ounce in
the first nine months of 2020 increased when compared to the
prior-year period due to lower gold production and the reasons
described above.
Minesite costs per tonne in the first nine months of 2020
increased when compared to the prior-year period for the reasons
described above. Total cash costs per ounce in the first nine
months of 2020 increased when compared to the prior-year period due
to the reasons described above, lower gold production and lower
by-product revenue per ounce.
Gold production in the first nine months of 2020 decreased
when compared to the prior-year period due to less ore stacked on
the heap leach mostly related to the temporary suspension of
operations in the second quarter of 2020 and to the depletion of
the Bravo pit during the third
quarter of 2020, partially offset by higher heap leach recoveries
and better recoveries for the ore from the Bravo pit that was processed at the
Pinos Altos mill.
The Bravo pit was
depleted in September. At the time of depletion, the
Bravo pit had produced
approximately 129,000 ounces of gold, compared to the original
design of 66,000 ounces of gold. Closure activities will be
conducted for the remainder of 2020 and the inventories in the heap
leach are expected to be depleted in the fourth quarter of 2020,
while minor residual leaching will continue into 2021 according to
the progressive closure plan.
La India –
Agglomeration System Commissioned in July; Exploration for
additional oxide and sulfide mineralization
continues
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, 2020
|
|
September 30, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
1,559
|
|
|
1,102
|
Tonnes of ore
processed per day
|
|
|
16,946
|
|
|
11,978
|
Gold grade
(g/t)
|
|
|
0.72
|
|
|
0.77
|
Gold production
(ounces)
|
|
|
22,776
|
|
|
18,386
|
Production costs per
tonne
|
|
$
|
10
|
|
$
|
14
|
Minesite costs per
tonne
|
|
$
|
11
|
|
$
|
15
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
707
|
|
$
|
819
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
740
|
|
$
|
872
|
Production costs per tonne in the third
quarter of 2020 decreased when compared to the prior-year period
primarily as a result of increased ore stacking at the heap leach
and the weakening of the Mexican peso. Production costs per
ounce in the third quarter of 2020 decreased when compared to the
prior-year period due to the higher gold production and the reasons
described above.
Minesite costs per tonne in the third
quarter of 2020 decreased when compared to the prior-year period
primarily as a result of increased ore stacking at the heap leach
and the weakening of the Mexican peso. Total cash costs per
ounce in the third quarter of 2020 decreased when compared to the
prior-year period due to the reasons described above, and higher
gold production.
Gold production in the third quarter of 2020 increased
when compared to the prior-year period primarily due to increased
tonnes of ore stacked at the heap leach, partially offset by lower
heap leach recovery as a result of the limited ore stacking at the
heap leach in the second quarter of 2020 as a result of the
temporary suspension of operations. In the third quarter of
2019, ore stacking and heap leach pad recoveries were negatively
affected by the high clay content of the ore.
La India Mine – Operating
Statistics
|
|
|
|
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
|
September 30, 2020
|
|
September 30, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
3,869
|
|
|
3,998
|
Tonnes of ore
processed per day
|
|
|
14,120
|
|
|
14,645
|
Gold grade
(g/t)
|
|
|
0.72
|
|
|
0.70
|
Gold production
(ounces)
|
|
|
62,581
|
|
|
61,574
|
Production costs per
tonne
|
|
$
|
13
|
|
$
|
12
|
Minesite costs per
tonne
|
|
$
|
13
|
|
$
|
12
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
824
|
|
$
|
794
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
779
|
|
$
|
800
|
Production costs per tonne in the first nine months of
2020 were essentially the same when compared to the prior-year
period primarily due to heap leach inventory adjustments, less ore
stacked at the heap leach as a result of the temporary suspension
of operations and the timing of unsold inventory, partially offset
by the weakening of the Mexican peso. Production costs per
ounce in the first nine months of 2020 increased when compared to
the prior-year period due to the reasons described above, partially
offset by higher gold production.
Minesite costs per tonne in the first nine months of 2020
were essentially the same when compared to the prior-year period
primarily due to the timing of inventory on the heap leach, less
ore stacked at the heap leach as a result of the temporary
suspension of operations, mostly offset by the weakening of the
Mexican peso. Total cash costs per ounce in the first nine
months of 2020 decreased when compared to the prior-year period due
to higher gold production offset by the reasons described
above.
Gold production in the first nine months of 2020 increased
when compared to the prior-year period due to increased ore
stacking in the third quarter of 2020 and higher gold grades
resulting from the mining sequence, partially offset by the impact
of the temporary suspension of operations during the second quarter
of 2020.
For the third year in a row, the La India mine was awarded
the Silver Helmet by the Mexican Chamber of Mines for excellence in
health and safety performance in the category of "Open Pit Mine
with up to 500 employees".
In the third quarter of 2020, the installation of the new
agglomeration system was completed under budget. The system
was commissioned in early July 2020
and supported the higher production rates achieved during the third
quarter of 2020. The La India heap leach pad construction
phase III is proceeding on track and it is expected to be completed
in the second quarter of 2021.
The early results of the scenario analysis on Chipriona
and other sulphide opportunities proved encouraging and, in the
third quarter of 2020, an additional budget of $0.5 million was approved to continue the studies
to complete a preliminary economic assessment.
Regional Exploration at La India Focused on Realito and Chipriona Deposits
Exploration at the La India property in the third quarter
of 2020 was focused on the oxide and sulphide portions of the
Realito gold-silver zone, located
1.5 kilometres east of the oxide mining operations, and the
Chipriona gold-polymetallic sulphide zone, located one kilometre
north of the mine.
Drilling into the shallow oxides at Realito is confirming mineral resources and
improving geological understanding of the deposit and its feeder
structures, while deeper drilling is expanding the sulphide
mineralization at depth.
An expansion of the drill program at Chipriona from 6,000
metres to 16,000 metres, expected to cost an additional
$1.5 million, was approved in the
third quarter of 2020. Drilling at Chipriona is infilling the
deposit and expanding it at depth, giving support to the Company's
development concept that Chipriona could potentially be developed
in tandem with remnant sulphide mineral resources beneath leachable
ore elsewhere on the property in a new phase of mining operations
at La India.
Santa Gertrudis –
Exploration Drilling Continues in the Amelia High-Grade Deposit;
Significant Gold Mineralization Encountered in Extensions and Newly
Discovered Structures in the Trinidad Trend
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. Extensive
drilling and studies in 2019 led to the Company declaring an
initial indicated mineral resource estimate of 104,000 ounces of
gold (5.1 million tonnes grading 0.64 g/t gold) at open-pit (oxide)
depth, and inferred mineral resources of 717,000 ounces of gold at
open-pit (oxide) depth (19.1 million tonnes grading 1.17 g/t gold)
and 451,000 ounces of gold at underground (sulphide) depth (3.1
million tonnes grading 4.58 g/t gold), as of December 31, 2019.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated July 29,
2020.
In the third quarter of 2020, drilling at Santa Gertrudis totalled 21 holes (7,856
metres) focused on expanding mineral resources and exploring for
new mineralized structures in the Trinidad Trend, which contains
the Amelia deposit and the Espiritu Santo Zone.
Selected recent drill results from the Amelia deposit and
the Espiritu Santo Zone are set out in the table below. Drill
collars are shown on the Santa Gertrudis Project – Local Geology
Map and drill collar coordinates are in the Appendix. All
intercepts reported for the Santa
Gertrudis project show uncapped and capped gold and silver
grades over an estimated true width and depth of midpoint below the
surface, based on a preliminary geological interpretation that will
be updated as new information becomes available with further
drilling.
Selected recent exploration drill results from the
Amelia deposit and the Espiritu Santo Zone in the Trinidad Trend at
the Santa Gertrudis
project
Drill Hole
|
Area
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)*
|
Silver grade
(g/t)
(uncapped)
|
Silver
grade (g/t)
(capped)*
|
SGE-20-354
|
Espiritu
Santo
|
108.0
|
116.0
|
96
|
6.5
|
1.2
|
1.2
|
4
|
4
|
and
|
Espiritu
Santo
|
179.0
|
188.0
|
159
|
5.5
|
0.9
|
0.9
|
142
|
142
|
SGE-20-355-W1
|
Amelia
|
852.0
|
857.0
|
687
|
4.5
|
2.8
|
2.8
|
11
|
11
|
SGE-20-359
|
Amelia
|
402.0
|
413.0
|
284
|
10.3
|
1.3
|
1.3
|
1
|
1
|
including
|
Amelia
|
402.0
|
407.0
|
283
|
4.6
|
2.2
|
2.2
|
2
|
2
|
and
|
Amelia
|
455.0
|
461.0
|
320
|
5.6
|
3.2
|
3.2
|
2
|
2
|
and
|
Amelia
|
581.0
|
593.0
|
361
|
11.5
|
1.6
|
1.6
|
9
|
9
|
SGE-20-362
|
Amelia
|
320.0
|
330.9
|
167
|
10.5
|
2.6
|
2.6
|
3
|
3
|
including
|
Amelia
|
326.5
|
330.9
|
168
|
4.2
|
5.6
|
5.6
|
8
|
8
|
SGE-20-364
|
Amelia
|
380.0
|
388.0
|
245
|
5.0
|
2.7
|
2.7
|
4
|
4
|
SGE-20-365
|
Amelia
|
361.0
|
367.0
|
197
|
5.3
|
2.2
|
2.2
|
5
|
5
|
and
|
Amelia
|
382.0
|
387.2
|
208
|
4.5
|
3.7
|
3.7
|
2
|
2
|
|
*Holes in the
Trinidad Trend use a capping factor of 25 g/t gold and 1,000 g/t
silver.
The cut-off grade used for these
intervals is 0.3 g/t gold in oxide material and 1.0 g/t gold in
sulphide material. The minimum estimated true width is 3.0
metres.
|
[Santa Gertrudis Project–
Local Geology Map]
Amelia is one of three deposits that comprise the Trinidad
Trend and is the site of a previously operating open-pit gold
mine. High-grade gold mineralization can be found in multiple
parallel structures that commonly correspond to lithological
contacts. The Amelia deposit strikes east-west for a length
of approximately 900 metres and dips steeply to the north.
Most of the open pit (oxide) material lies between surface and 100
metres depth, while the underground mineral resource extends below
the open-pit mineral resource to a depth of approximately 350
metres.
The inferred mineral resource estimate at Amelia is
comprised of 1.6 million tonnes grading 1.38 g/t gold (70,000
ounces of gold) at open pit depth and 3.1 million tonnes grading
4.58 g/t gold (451,000 ounces of gold) of high-grade sulphide
mineralization at underground depth. The Amelia deposit's
mineral resource is part of the Santa
Gertrudis project mineral resource estimate as of
December 31, 2019.
Exploration drilling in the third quarter of 2020 into
Amelia's high-grade structures continued to expand the mineral
resources along extensions of the structures, which remains
open.
Hole SGE20-359 intersected three wide, gold-mineralized
structures, with the first two intercepts supporting the expansion
of underground mineral resources and the third intercept
representing a new structure: 1.3 g/t gold and 1 g/t silver over
10.3 metres at 284 metres depth, including 2.2 g/t gold and 1 g/t
silver over 4.6 metres at 283 metres depth; 3.2 g/t gold and 2 g/t
silver over 5.6 metres at 320 metres depth; and 1.6 g/t gold and 9
g/t silver over 11.5 metres at 361 metres depth.
From the same location but drilled at a shallower dip,
hole SGE20-362 intersected 2.6 g/t gold and 3 g/t silver over 10.5
metres at 167 metres depth, including 5.6 g/t gold and 8 g/t silver
over 4.2 metres at 167 metres depth.
Located 206 metres southwest of hole SGE20-362, hole
SGE20-364 intersected another new structure within the Amelia
deposit to the south of the current mineral resources, returning
2.7 g/t gold and 3 g/t silver over 5.0 metres at 245 metres
depth.
Hole SGE20-365, located 250 metres northeast of hole
SGE20-364, intersected two shallow oxidized structures that
returned 2.2 g/t gold and 5 g/t silver over 5.3 metres at 197
metres depth and 3.7 g/t gold and 2 g/t silver over 4.5 metres at
208 metres depth — further supporting the potential for mineral
resource expansion.
Hole SGE20-355-W1, located 226 metres northeast of hole
SGE20-365, intersected 2.8 g/t gold and 11 g/t silver over 4.5
metres at 687 metres depth within the Amelia deposit.
Exploration drilling at Espiritu
Santo in the third quarter of 2020 continued to test
extensions of the zone's gold- and silver-rich structures at
shallow depths to increase the oxide portion of the mineral
resource that is amenable to open pit mining.
The Company is also advancing the Santa Teresa Zone,
located 3.2 kilometres southwest of the Amelia deposit.
Santa Teresa has a small,
historical pit and was the target of historical drill holes that
intercepted a series of parallel structures with gold and silver
mineralization at 50 metres depth. Field work is ongoing in
preparation for proof-of-concept drilling in the fourth quarter of
2020.
Approximately 4 kilometres south of the Trinidad Trend,
drilling will also be carried out in the fourth quarter of 2020 in
the El Toro Trend, further testing the extension of high-grade
gold-mineralized structures under two historical open
pits.
The drilling campaign will continue at Santa Gertrudis for the remainder of the year,
with $10.4 million budgeted for work
in 2020 that includes 25,000 metres of drilling focused on
expanding the current mineral resources and testing new
targets.
Metallurgical testing of Amelia
and Espiritu Santo mineralization is underway and will
further determine gold and silver recovery rates in support of an
updated mineral resource estimation at year-end 2020.
With potential production scenarios that include using a
heap-leach facility to process lower grade mineralization and a
small mill facility to process higher-grade ore, the Company
believes that the Santa Gertrudis
project has the potential to be a similar size operation to its La
India mine.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that
has produced precious metals since 1957. Its operating mines
are located in Canada,
Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States, Sweden and Colombia. The Company and its
shareholders have full exposure to gold prices due to its
long-standing policy of no forward gold sales. Agnico Eagle
has declared a cash dividend every year since 1983.
Note Regarding Certain Measures of
Performance
This news release discloses certain measures, including
"total cash costs per ounce", "all-in sustaining costs per ounce",
"minesite costs per tonne", "adjusted net income", "operating
margin" and "free cash flow" 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 and free cash flow, 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. 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 as recorded in the condensed interim
consolidated financial statements: Income and mining taxes expense;
Other expenses (income); Foreign currency translation loss (gain);
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.
Free cash flow is calculated by deducting additions to
property, plant and mine development from cash provided by
operating activities including changes in non-cash working capital
balances. Management uses free cash flow to assess the
availability of cash, after funding operations and capital
expenditures, to operate the business without additional borrowing
or drawing down on the Company's existing cash balance.
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 and AISC per
ounce. The estimates are based upon the total cash costs per
ounce and all-in sustaining costs per ounce 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 28, 2020. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include, without limitation:
statements regarding the Company's plans to ramp-up and optimize
operations following temporary suspensions of operations related to
the COVID-19 pandemic, including the timing thereof and impacts on
anticipated gold production and costs; statements regarding the
impact of the COVID-19 pandemic and measures taken to reduce the
spread of COVID-19 on the Company's operations, including its
employees and overall business; the Company's forward-looking
production guidance, including estimated ore grades, recovery
rates, project timelines, drilling results, metal production, life
of mine estimates, total cash costs per ounce, AISC per ounce,
minesite costs per tonne, other expenses, cash flows and free cash
flow; the estimated timing and conclusions of technical studies and
evaluations; the methods by which ore will be extracted or
processed; statements concerning the Company's expansion plans at
Kittila, Meliadine Phase 2 and the Amaruq underground
project, and the Company's ramp up of operations at Meliadine and
Amaruq, including the timing, funding, completion and commissioning
thereof; statements concerning other expansion projects, recovery
rates, mill throughput, optimization and projected exploration,
including costs and other estimates upon which such projections are
based; statements regarding timing and amounts of capital
expenditures, 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; 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,
2019 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2019 ("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 there are no significant disruptions affecting
operations; that production, permitting, development, expansion and
the ramp up of operations at each of Agnico Eagle's properties
proceeds on a basis consistent with current expectations and plans;
that the relevant metal prices, foreign exchange rates and prices
for key mining and construction supplies will be consistent with
Agnico Eagle's expectations; that Agnico Eagle's current estimates
of mineral reserves, mineral resources, mineral grades and metal
recovery are accurate; that there are no material delays in the
timing for completion of ongoing growth projects; that seismic
activity at the Company's operations at LaRonde and other
properties is as expected by the Company; that the Company's
current plans to optimize production are successful; and that there
are no material variations in the current tax and regulatory
environment. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks
include, but are not limited to: the 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 and Meliadine 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; 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; 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. SEC Industry Guide 7 will
remain effective until all issuers are required to comply with the
SEC Modernization Rules, at which time SEC Industry Guide 7 will be
rescinded.
As a result of the adoption of the SEC Modernization
Rules, the SEC now recognizes estimates of "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources." In addition, the SEC has amended definitions of
"proven mineral reserves" and "probable mineral reserves" in the
SEC Modernization Rules, with definitions that are substantially
similar to those used in NI 43-101.
United States investors
are cautioned that while the SEC now recognizes "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that any part or all of the
mineral deposits in these categories will ever be converted into a
higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. 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, 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, 2019 mineral reserves estimate at
all mines and advanced projects reported by the
Company
|
Metal
prices
|
Exchange
rates
|
|
Gold (US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$
per US$1.00
|
Mexican
peso per
US$1.00
|
US$ per
€1.00
|
Long-life
operations
and projects
|
$1,200
|
$15.50
|
$2.50
|
$1.00
|
$1.25
|
MXP17.00
|
$1.15
|
Short-life
operations
– Creston Mascota
(Bravo) and Sinter
satellite operations
at Pinos Altos
|
$1.30
|
MXP18.00
|
Not
applicable
|
Upper Beaver*,
Canadian Malartic
mine**
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
|
*The Upper Beaver project has a net smelter return
(NSR) cut-off value of C$125/tonne
|
**The Canadian Malartic mine uses a cut-off grade
between 0.40 g/t and 0.43 g/t gold (depending on the
deposit)
|
NI 43-101 requires mining companies to disclose mineral
reserves and mineral resources using the subcategories of "proven
mineral reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert
mineral resources to mineral reserves. These include, but are
not restricted to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors.
A proven mineral reserve is the economically mineable part
of a measured mineral resource. A proven mineral reserve
implies a high degree of confidence in the modifying factors.
A probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of
solid material of economic interest in or on the Earth's crust in
such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with confidence sufficient
to allow the application of modifying factors to support detailed
mine planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all
of an inferred mineral resource exists, or is economically or
legally mineable.
A feasibility study is a comprehensive technical and
economic study of the selected development option for a mineral
project that includes appropriately detailed assessments of
applicable modifying factors, together with any other relevant
operational factors and detailed financial analysis that are
necessary to demonstrate, at the time of reporting, that extraction
is reasonably justified (economically mineable). The results
of the study may reasonably serve as the basis for a final decision
by a proponent or financial institution to proceed with, or
finance, the development of the project. The confidence level
of the study will be higher than that of a pre-feasibility
study.
Additional Information
Additional information about each of the mineral projects
that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d), as well as other information, can be found in
Technical Reports, which may be found at www.sedar.com. Other
important operating information can be found in the Company's AIF,
MD&A and Form 40-F.
Property/Project name and
location
|
Date of most recent Technical Report
(NI 43-101) filed onSEDAR
|
LaRonde, LaRonde Zone
5 & Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
June 16,
2014
|
Kittila, Kuotko and
Kylmakangas, Finland
|
March 4,
2010
|
Meadowbank Gold
Complex including the Amaruq Satellite Mine
Development, Nunavut, Canada
|
February 14,
2018
|
Goldex, Quebec,
Canada
|
October 14,
2012
|
Meliadine, Nunavut,
Canada
|
February 11,
2015
|
Hammond Reef,
Ontario, Canada
|
July 2,
2013
|
Upper Beaver
(Kirkland Lake property), Ontario, Canada
|
November 5,
2012
|
Pinos Altos and
Creston Mascota, Mexico
|
March 25,
2009
|
La India,
Mexico
|
August 31,
2012
|
APPENDIX - COVID-19 REGIONAL UPDATES
- Abitibi – The Government of
Quebec has designated the region
with alert level yellow, indicating a medium risk level for the
spread of COVID-19 and minimal governmental restrictions are in
place
-
- In September Canadian Malartic had one confirmed COVID-19
case and in October Goldex confirmed 4 COVID-19 cases. Both teams
effectively managed the contact tracing, disinfection and the
follow up of employees in cooperation with the public health
department
- The operations have developed and adopted color coded
protocols in-line with the government risk levels to strengthen the
application of hygiene measures
- A testing lab was set up in the Company's CTM office at
the Val d'Or airport to test
employees travelling to Nunavut
operations in addition to those from the Abitibi operations on an
as-needed basis
- Canadian Malartic is in the process of acquiring a
testing lab to manage increased risk to the operations posed by the
high volume of contractors who come from outside the region during
maintenance shutdowns
- The Company maintains open communication channels with
various government ministries and the local authorities to
regularly inform them of any evolving situations at our operations
and what actions are being implemented to secure our people and
their families as well as to stay aware of particular needs they
may have and support that the Company may provide
- Nunavut
– There have been no confirmed COVID-19 cases in the
territory other than at mine sites from employees travelling from
southern communities. Border restrictions for Nunavut remain in place with 14-day isolation
required prior to entering the communities
-
- The Nunavut-based
workforce remains at home and the Company continues to pay 75% of
their base salaries, which amounts to approximately $1.4 million per month. As at the date of this
news release, no timeline and process has been set with community
leaders, the Nunavut chief medical
officer and government officials for their return to work
- Two COVID-19 cases were recently detected through the
operations screening and testing protocols. The teams effectively
managed the contact tracing and isolation of contact-cases and the
follow-up of employees along with the public health department
- Both sites are implementing re-testing of employees five
days into their rotation to detect people that may have been
recently exposed, and the disease was in incubation at time of
arrival
- The Meadowbank Complex will set up a new testing lab to
provide capacity for re-testing during the rotation and potential
testing of Nunavut-based employees
to enable their return to work
- Options to accelerate testing results are under
review
- The Company established a program named 'The Good Deed
Brigade' to support local community projects that lack resources.
With this program, some of the Company's Nunavut-based employees in several
neighbouring hamlets are undertaking or participating in community
based projects, such as cleaning the landfills or supporting
training and mentoring programs
- A Nunavut Community tour
is planned in November and meetings are planned with the main
stakeholders as well as employees in each community. The government
mandated quarantine period will be complete and physical distancing
and hygiene measures will be followed
- Finland
– Although the number of daily COVID cases has recently
exceeded the number of cases during the first wave, the Finnish
government has indicated that it is not considering lock downs
related to industrial operations
-
- No COVID-19 cases were detected at Kittila in the third
quarter of 2020
- Local resources have been added to support the Procon
team and offset the impact of travel restrictions on the
advancement of shaft sinking
- The municipality of Kittila opened a COVID-19 testing
facility and which is available for all residents of the
municipality of Kittila and sponsored by Agnico
Eagle
- Agnico Eagle sponsored a local mental health initiative
targeted to help people suffering from COVID related stress
- Mexico
– Every state is colour coded by the government to reflect
the level of risk with the spread of the virus and the level of
procedures to be applied in the society. Sonora state is at yellow level (medium risk),
while Chihuahua is at orange level (medium to high risk)
-
- A total of 110 confirmed cases (including exploration in
Mexico) have been detected in
employees and contractors as of October 27,
2020, of which 96 have recovered. All active cases are
stable and close follow-up on each case is being performed
- Screening and testing protocols and control measures have
been reinforced to detect cases prior to entrance to the sites and
to control the spread of the virus
- People more vulnerable due to age or medical condition
remain off-site. Personnel that are able to work tele-remotely are
doing so
- Regular communications with employees to reinforce safe
COVID-19 prevention practices at home and work
- Continued support to local communities, such as the
distribution of food hampers to local families in need and
resources provided to local health centres and communities
- Supply Chain Impact
-
- With the second wave of COVID-19 underway in all of the
Company's operating regions, the Company is closely monitoring
general business activity and is regularly communicating with key
suppliers to identify potential supply chain issues
- In Nunavut, the sea-lift
season has been completed and all materials have been delivered to
site as per plan
- Costs Related to the Suspension and/or Reduction of
Activities
-
- In the third quarter of 2020, the Company incurred a
total of $3.7 million included in
Other Expenses related to the payment of 75% of the base salaries
of the Nunavut-based employees
- In the third quarter of 2020, the Company incurred
$2.8 million in direct and
incremental costs to manage the COVID-19 pandemic (approximately
$6 per ounce). These costs
relate mostly to the purchase of sanitizing equipment and
consumables; procurement of non-medical masks; testing of
employees; rental of trailers for screening; additional employee
transportation; and supplies and health support to surrounding
communities
- These incremental costs related to the COVID-19 pandemic
are expected to remain in place for the foreseeable future and are
expected to increase the production costs at our operations by
approximately $1.0 million per month
(or approximately $6 per
ounce). To date, the Company has seen limited impact on
operational productivity as a result of COVID-19
APPENDIX - EXPLORATION DRILL COLLAR
COORDINATES
LaRonde 3 exploration drill collar
coordinates
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
LR-302-012
|
690223
|
5346770
|
-2,671
|
172
|
-65
|
507
|
LR-302-013
|
690225
|
5346771
|
-2,670
|
138
|
-44
|
321
|
LR-302-014A
|
690223
|
5346770
|
-2,671
|
170
|
-64
|
431
|
LR-314-013
|
690053
|
5346858
|
-2,803
|
155
|
-47
|
466
|
LR-314-015
|
690054
|
5346857
|
-2,803
|
150
|
-42
|
419
|
|
*Coordinate System UTM Nad 83 Zone
17
|
Canadian Malartic exploration drill collar
coordinates
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
MEX19-140WB
|
5334597
|
718145
|
308
|
193
|
-59
|
773
|
MEX19-151WC
|
5334716
|
717422
|
309
|
169
|
-68
|
663
|
MEX19-159
|
5334653
|
717848
|
309
|
198
|
-74
|
1,974
|
MEX19-159A
|
5334653
|
717848
|
309
|
198
|
-74
|
1,953
|
MEX19-160
|
5334704
|
718008
|
308
|
209
|
-50
|
1,809
|
MEX20-163AW
|
5334237
|
717392
|
314
|
155
|
-75
|
1,000
|
MEX20-163AWA
|
5334237
|
717392
|
314
|
155
|
-75
|
1,039
|
MEX20-164
|
5334701
|
717701
|
309
|
203
|
-75
|
2,109
|
MEX20-164W
|
5334701
|
717701
|
309
|
203
|
-75
|
2,119
|
MEX20-166
|
5334595
|
718289
|
308
|
194
|
-66
|
1,824
|
MEX20-167
|
5334737
|
717423
|
309
|
184
|
-64
|
1,860
|
MEX20-169AW
|
5334652
|
717848
|
309
|
186
|
-75
|
2,099
|
MEX20-170AW
|
5334595
|
718289
|
308
|
191
|
-71
|
2,026
|
MEX20-171
|
5334701
|
717701
|
309
|
193
|
-75
|
2,000
|
MEX20-171WA
|
5334701
|
717701
|
309
|
193
|
-75
|
2,082
|
MEX20-172A
|
5334704
|
718008
|
308
|
175
|
-74
|
2,073
|
MEX20-172AW
|
5334704
|
718008
|
308
|
175
|
-74
|
2,103
|
MEX20-172AWA
|
5334704
|
718008
|
308
|
175
|
-74
|
2,148
|
MEX20-176
|
5334531
|
717710
|
309
|
185
|
-56
|
1,533
|
MEX20-177
|
5334208
|
718319
|
310
|
190
|
-74
|
1,650
|
MEX20-178
|
5334236
|
717392
|
314
|
182
|
-75
|
1,403
|
MEX20-178W
|
5334236
|
717392
|
314
|
182
|
-75
|
1,470
|
MEX20-178WA
|
5334236
|
717392
|
314
|
182
|
-75
|
1,512
|
|
*Coordinate System NAD 1983 UTM Zone
17N
|
Kirkland Lake project
exploration drill collar coordinates
|
Drill Collar
Coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
KLUB20-200W10
|
5336834
|
591663
|
316
|
132
|
-70
|
1,674
|
KLUB20-200W11
|
5336834
|
591663
|
316
|
132
|
-70
|
1,662
|
KLUB20-310AW1
|
5336729
|
591860
|
317
|
140
|
-68
|
1,530
|
KLUB20-384E
|
5335516
|
591740
|
285
|
139
|
-47
|
444
|
KLUB20-561W2
|
5336456
|
591713
|
304
|
111
|
-75
|
1,492
|
KLUB20-561W3
|
5336456
|
591713
|
304
|
111
|
-75
|
1,320
|
KLUB20-561W4
|
5336456
|
591713
|
304
|
111
|
-75
|
1,302
|
KLUB20-561W5
|
5336456
|
591713
|
304
|
111
|
-75
|
1,362
|
|
*Coordinate System NAD 1983 UTM Zone
17N
|
Drill collar coordinates of selected drill holes at
Kittila mine
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
RIE19-702H
|
7539299
|
2558637
|
-672
|
90
|
-75
|
1,164
|
RIE19-702J
|
7539299
|
2558637
|
-672
|
90
|
-75
|
1107
|
RIE20-603
|
7539228
|
2558714
|
-788
|
97
|
3
|
324
|
RIE20-605
|
7539225
|
2558714
|
-788
|
115
|
-23
|
251
|
RIE20-606
|
7539229
|
2558714
|
-789
|
85
|
-35
|
558
|
RUG20-510
|
7538051
|
2558709
|
-762
|
95
|
-2
|
342
|
RUG20-515
|
7537954
|
2558695
|
-775
|
100
|
28
|
271
|
RUG20-516
|
7537954
|
2558695
|
-776
|
100
|
15
|
282
|
RUG20-517
|
7537954
|
2558695
|
-776
|
110
|
22
|
243
|
RUG20-518
|
7537954
|
2558695
|
-776
|
106
|
4
|
246
|
RUG20-519
|
7537955
|
2558695
|
-777
|
97
|
-2
|
348
|
|
*Finnish Coordinate System KKJ Zone
2
|
Pinos Altos
exploration drill collar coordinates
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
CBUG20-035
|
3136524
|
758299
|
1,221
|
47
|
0
|
108
|
CBUG20-036
|
3136524
|
758299
|
1,223
|
47
|
0
|
141
|
CBUG20-037
|
3136619
|
758537
|
1,215
|
232
|
32
|
141
|
CBUG20-040
|
3136528
|
758249
|
1,223
|
50
|
28
|
255
|
CBUG20-042
|
3136496
|
758344
|
1,223
|
50
|
40
|
207
|
CBUG20-045
|
3136571
|
758157
|
1,224
|
50
|
-5
|
183
|
CBUG20-048
|
3136557
|
758204
|
1,225
|
50
|
41
|
261
|
CBUG20-049
|
3136570
|
758156
|
1,227
|
50
|
40
|
261
|
CBUG20-050
|
3136557
|
758204
|
1,226
|
50
|
21
|
237
|
CBUG20-054
|
3136557
|
758204
|
1,223
|
50
|
-5
|
171
|
CBUG20-057
|
3136528
|
758250
|
1,223
|
50
|
25
|
234
|
CBUG20-058
|
3136524
|
758298
|
1,223
|
47
|
45
|
141
|
RP20-276
|
3130269
|
768123
|
2,194
|
230
|
-45
|
87
|
RP20-277
|
3130582
|
767672
|
2,185
|
205
|
-60
|
129
|
RP20-278
|
3130579
|
767586
|
2,191
|
200
|
-45
|
90
|
RP20-279
|
3130704
|
767361
|
2,166
|
200
|
-45
|
78
|
RP20-280
|
3130699
|
767330
|
2,164
|
200
|
-45
|
60
|
RP20-287
|
3131331
|
765110
|
2,026
|
200
|
-45
|
51
|
RP20-289
|
3131211
|
765464
|
1,991
|
200
|
-55
|
78
|
RP20-290
|
3131092
|
765670
|
2,030
|
200
|
-45
|
54
|
RP20-294
|
3131521
|
765106
|
1,942
|
200
|
-55
|
180
|
RP20-295
|
3131419
|
765289
|
1,976
|
200
|
-56
|
231
|
RP20-296
|
3131409
|
765256
|
1,966
|
200
|
-55
|
189
|
|
*Coordinates of drill holes are in UTM NAD27
12N.
|
Collar coordinates of exploration drill holes at
Santa Gertrudis
project
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
SGE-20-354
|
543470
|
3392334
|
1,166
|
170
|
-60
|
300
|
SGE-20-359
|
541987
|
3392499
|
1,359
|
120
|
-61
|
800
|
SGE-20-355-W1
|
542290
|
3393144
|
1,302
|
180
|
-50
|
1120
|
SGE-20-362
|
541991
|
3392502
|
1,361
|
120
|
-45
|
720
|
SGE-20-364
|
542061
|
3392311
|
1,348
|
120
|
-60
|
500
|
SGE-20-365
|
542079
|
3392560
|
1,352
|
120
|
-46
|
600
|
|
*Coordinate System UTM WGS84 12N
Zone
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Operating margin(i) by
mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
144,364
|
|
$
|
93,223
|
|
$
|
250,512
|
|
$
|
225,327
|
LaRonde Zone 5
mine
|
21,522
|
|
12,238
|
|
43,380
|
|
26,199
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
2,033
|
Goldex mine
|
36,350
|
|
33,197
|
|
94,350
|
|
83,287
|
Meadowbank
Complex
|
46,032
|
|
9,227
|
|
37,423
|
|
37,501
|
Meliadine
mine
|
109,313
|
|
50,323
|
|
215,746
|
|
65,356
|
Canadian Malartic
mine(ii)
|
76,673
|
|
70,263
|
|
179,221
|
|
185,124
|
Kittila
mine
|
62,807
|
|
44,696
|
|
163,806
|
|
78,140
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
37,063
|
|
30,003
|
|
79,705
|
|
91,383
|
Creston Mascota
mine
|
9,279
|
|
12,203
|
|
38,101
|
|
38,181
|
La India
mine
|
24,406
|
|
11,240
|
|
58,122
|
|
36,526
|
Total operating
margin(i)
|
567,809
|
|
366,613
|
|
1,160,366
|
|
869,057
|
Amortization of
property, plant and mine development
|
173,173
|
|
143,293
|
|
456,147
|
|
395,738
|
Exploration,
corporate and other
|
61,947
|
|
83,864
|
|
230,648
|
|
238,522
|
Income before income
and mining taxes
|
332,689
|
|
139,456
|
|
473,571
|
|
234,797
|
Income and mining
taxes expense
|
110,035
|
|
62,789
|
|
167,181
|
|
93,326
|
Net income for the
period
|
$
|
222,654
|
|
$
|
76,667
|
|
$
|
306,390
|
|
$
|
141,471
|
Net income per
share — basic
|
$
|
0.92
|
|
$
|
0.32
|
|
$
|
1.27
|
|
$
|
0.60
|
Net income per
share — diluted
|
$
|
0.91
|
|
$
|
0.32
|
|
$
|
1.26
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
Cash flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
462,538
|
|
$
|
349,233
|
|
$
|
788,544
|
|
$
|
624,224
|
Cash used in
investing activities
|
$
|
(205,893)
|
|
$
|
(245,829)
|
|
$
|
(561,797)
|
|
$
|
(706,673)
|
Cash (used in)
provided by financing activities
|
$
|
(268,802)
|
|
$
|
37,249
|
|
$
|
(228,390)
|
|
$
|
38,701
|
|
|
|
|
|
|
|
|
Realized prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,911
|
|
$
|
1,480
|
|
$
|
1,753
|
|
$
|
1,374
|
Silver
(per ounce)
|
$
|
25.35
|
|
$
|
17.46
|
|
$
|
19.16
|
|
$
|
16.00
|
Zinc
(per tonne)
|
$
|
2,303
|
|
$
|
2,415
|
|
$
|
2,241
|
|
$
|
2,639
|
Copper
(per tonne)
|
$
|
6,972
|
|
$
|
5,569
|
|
$
|
5,855
|
|
$
|
5,871
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
81,199
|
|
91,664
|
|
198,688
|
|
245,684
|
LaRonde Zone 5
mine
|
18,981
|
|
15,438
|
|
45,496
|
|
44,596
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
5
|
Goldex mine
|
31,008
|
|
37,142
|
|
88,033
|
|
105,921
|
Meadowbank
Complex(iii)
|
74,921
|
|
48,870
|
|
140,679
|
|
131,829
|
Meliadine
mine(iii)
|
96,757
|
|
78,093
|
|
226,107
|
|
156,787
|
Canadian Malartic
mine(ii)(iii)
|
76,398
|
|
81,573
|
|
197,946
|
|
249,554
|
Kittila
mine
|
53,149
|
|
61,343
|
|
163,069
|
|
130,756
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
30,937
|
|
34,832
|
|
78,127
|
|
119,302
|
Creston Mascota
mine
|
6,567
|
|
9,596
|
|
34,397
|
|
41,461
|
La India
mine
|
22,776
|
|
18,386
|
|
62,581
|
|
61,574
|
Total gold
(ounces)
|
492,693
|
|
476,937
|
|
1,235,123
|
|
1,287,469
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
174
|
|
227
|
|
459
|
|
620
|
LaRonde Zone 5
mine
|
2
|
|
2
|
|
7
|
|
7
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
1
|
Goldex mine
|
—
|
|
—
|
|
1
|
|
1
|
Meadowbank
Complex
|
18
|
|
29
|
|
40
|
|
71
|
Meliadine
mine
|
7
|
|
6
|
|
19
|
|
11
|
Canadian Malartic
mine(ii)
|
81
|
|
102
|
|
260
|
|
307
|
Kittila
mine
|
3
|
|
4
|
|
9
|
|
10
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
505
|
|
517
|
|
1,234
|
|
1,642
|
Creston Mascota
mine
|
94
|
|
134
|
|
523
|
|
483
|
La India
mine
|
14
|
|
27
|
|
51
|
|
106
|
Total silver
(thousands of ounces)
|
898
|
|
1,048
|
|
2,603
|
|
3,259
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,198
|
|
3,475
|
|
3,275
|
|
10,716
|
Copper
(tonnes)
|
723
|
|
958
|
|
2,128
|
|
2,468
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Payable metal sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
105,457
|
|
90,867
|
|
200,013
|
|
256,501
|
LaRonde Zone 5
mine
|
17,835
|
|
15,368
|
|
43,805
|
|
39,762
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
3,777
|
Goldex mine
|
30,421
|
|
36,488
|
|
87,789
|
|
105,028
|
Meadowbank
Complex
|
72,390
|
|
52,211
|
|
140,083
|
|
137,686
|
Meliadine
mine
|
92,775
|
|
71,407
|
|
227,884
|
|
131,962
|
Canadian Malartic
mine(ii)(iv)
|
75,568
|
|
77,595
|
|
187,852
|
|
232,241
|
Kittila
mine
|
56,848
|
|
60,020
|
|
170,333
|
|
131,845
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
30,470
|
|
37,535
|
|
82,128
|
|
119,490
|
Creston Mascota
mine
|
7,573
|
|
12,285
|
|
34,465
|
|
43,295
|
La India
mine
|
20,958
|
|
17,385
|
|
61,840
|
|
62,314
|
Total gold
(ounces)
|
510,295
|
|
471,161
|
|
1,236,192
|
|
1,263,901
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
176
|
|
212
|
|
472
|
|
619
|
LaRonde Zone 5
mine
|
2
|
|
2
|
|
7
|
|
7
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
2
|
Goldex mine
|
—
|
|
—
|
|
1
|
|
1
|
Meadowbank
Complex
|
9
|
|
32
|
|
33
|
|
69
|
Meliadine
mine
|
4
|
|
—
|
|
17
|
|
1
|
Canadian Malartic
mine(ii)(iv)
|
70
|
|
83
|
|
240
|
|
281
|
Kittila
mine
|
4
|
|
1
|
|
9
|
|
9
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
489
|
|
576
|
|
1,307
|
|
1,636
|
Creston Mascota
mine
|
101
|
|
160
|
|
528
|
|
475
|
La India
mine
|
21
|
|
26
|
|
57
|
|
114
|
Total silver
(thousands of ounces):
|
876
|
|
1,092
|
|
2,671
|
|
3,214
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
1,570
|
|
4,075
|
|
3,403
|
|
10,660
|
Copper
(tonnes)
|
739
|
|
947
|
|
2,121
|
|
2,445
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced — co-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
619
|
|
$
|
635
|
|
$
|
658
|
|
$
|
690
|
LaRonde Zone 5
mine
|
683
|
|
655
|
|
750
|
|
708
|
Goldex mine
|
702
|
|
549
|
|
653
|
|
565
|
Meadowbank
Complex
|
1,263
|
|
1,071
|
|
1,516
|
|
1,002
|
Meliadine
mine
|
697
|
|
746
|
|
823
|
|
776
|
Canadian Malartic
mine(ii)(iii)
|
803
|
|
635
|
|
784
|
|
616
|
Kittila
mine
|
814
|
|
725
|
|
777
|
|
729
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,103
|
|
1,013
|
|
1,065
|
|
825
|
Creston Mascota
mine
|
1,175
|
|
937
|
|
841
|
|
663
|
La India
mine
|
759
|
|
900
|
|
797
|
|
828
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
835
|
|
$
|
723
|
|
$
|
864
|
|
$
|
721
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced — by-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
428
|
|
$
|
454
|
|
$
|
508
|
|
$
|
481
|
LaRonde Zone 5
mine
|
681
|
|
653
|
|
747
|
|
705
|
Goldex mine
|
702
|
|
549
|
|
653
|
|
565
|
Meadowbank
Complex
|
1,260
|
|
1,035
|
|
1,511
|
|
991
|
Meliadine
mine
|
695
|
|
746
|
|
822
|
|
776
|
Canadian Malartic
mine(ii)(iii)
|
772
|
|
615
|
|
756
|
|
597
|
Kittila
mine
|
813
|
|
725
|
|
776
|
|
728
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
677
|
|
745
|
|
740
|
|
603
|
Creston Mascota
mine
|
771
|
|
668
|
|
565
|
|
468
|
La India
mine
|
740
|
|
872
|
|
779
|
|
800
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
764
|
|
$
|
653
|
|
$
|
805
|
|
$
|
643
|
|
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 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 during these periods as commercial production at the
Tiriganiaq open pit deposit has not yet been achieved. Payable
production for the three and nine months ended September 30,
2020 includes 13,305 and 18,930 ounces of gold from the Barnat
deposit at the Canadian Malartic mine, respectively, which were
produced during these periods as commercial production at the
Barnat deposit has not yet been achieved. Payable production for
the three and nine months ended September 30, 2019 includes
33,134 and 35,281 ounces of gold from the Amaruq deposit,
respectively, which were produced prior to the achievement of
commercial production at the Amaruq deposit. Payable production for
the nine months ended September 30, 2019 includes 47,281
ounces of gold from the Meliadine mine, which were produced prior
to the achievement of commercial production at the Meliadine mine.
Payable production for the nine months ended September 30,
2019 includes 5 ounces of payable gold production at the Lapa mine,
which were credited to the Company as a result of final refining
reconciliations following the cessation of mining and processing
operations at the Lapa mine on December 31, 2018.
|
|
(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.
|
AGNICO EAGLE MINES LIMITED
|
CONSOLIDATED BALANCE SHEETS
|
(thousands of United States dollars, except share
amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
As at
|
|
As at
|
|
September 30, 2020
|
|
December 31, 2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
315,884
|
|
$
|
321,897
|
Short-term
investments
|
5,635
|
|
6,005
|
Trade
receivables
|
9,167
|
|
8,320
|
Inventories
|
651,673
|
|
580,068
|
Income taxes
recoverable
|
2,405
|
|
2,281
|
Fair value of
derivative financial instruments
|
17,721
|
|
4,535
|
Other current
assets
|
160,633
|
|
179,218
|
Total current
assets
|
1,163,118
|
|
1,102,324
|
Non-current
assets:
|
|
|
|
Goodwill
|
407,792
|
|
407,792
|
Property, plant and
mine development
|
7,128,672
|
|
7,003,665
|
Investments
|
281,857
|
|
91,236
|
Other
assets
|
220,068
|
|
184,868
|
Total
assets
|
$
|
9,201,507
|
|
$
|
8,789,885
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
385,037
|
|
$
|
345,572
|
Reclamation
provision
|
15,313
|
|
12,455
|
Interest
payable
|
25,396
|
|
16,752
|
Income taxes
payable
|
40,137
|
|
26,166
|
Lease
obligations
|
19,473
|
|
14,693
|
Current portion of
long-term debt
|
—
|
|
360,000
|
Fair value of
derivative financial instruments
|
4,860
|
|
—
|
Total current
liabilities
|
490,216
|
|
775,638
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,564,590
|
|
1,364,108
|
Lease
obligations
|
98,017
|
|
102,135
|
Reclamation
provision
|
480,709
|
|
427,346
|
Deferred income and
mining tax liabilities
|
1,029,000
|
|
948,142
|
Other
liabilities
|
54,956
|
|
61,002
|
Total
liabilities
|
3,717,488
|
|
3,678,371
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding — 242,991,213 common shares issued, less 640,834
shares held in trust
|
5,723,218
|
|
5,589,352
|
Stock
options
|
172,912
|
|
180,160
|
Contributed
surplus
|
37,254
|
|
37,254
|
Deficit
|
(485,959)
|
|
(647,330)
|
Other
reserves
|
36,594
|
|
(47,922)
|
Total
equity
|
5,484,019
|
|
5,111,514
|
Total liabilities and
equity
|
$
|
9,201,507
|
|
$
|
8,789,885
|
AGNICO EAGLE MINES LIMITED
|
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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
980,612
|
|
$
|
682,959
|
|
$
|
2,209,665
|
|
$
|
1,741,793
|
|
|
|
|
|
|
|
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
Production(i)
|
412,803
|
|
316,346
|
|
1,049,299
|
|
872,736
|
Exploration and
corporate development
|
30,488
|
|
28,227
|
|
74,468
|
|
81,029
|
Amortization of
property, plant and mine development
|
173,173
|
|
143,293
|
|
456,147
|
|
395,738
|
General and
administrative
|
26,291
|
|
27,336
|
|
82,380
|
|
85,555
|
Finance
costs
|
21,439
|
|
25,721
|
|
74,201
|
|
78,797
|
(Gain) loss on
derivative financial instruments
|
(29,724)
|
|
2,378
|
|
(49,297)
|
|
(10,296)
|
Foreign currency
translation loss (gain)
|
4,321
|
|
(1,347)
|
|
11,489
|
|
4,990
|
Other expenses
(income)
|
9,132
|
|
1,549
|
|
37,407
|
|
(1,553)
|
Income before income
and mining taxes
|
332,689
|
|
139,456
|
|
473,571
|
|
234,797
|
Income and mining
taxes expense
|
110,035
|
|
62,789
|
|
167,181
|
|
93,326
|
Net income for the
period
|
$
|
222,654
|
|
$
|
76,667
|
|
$
|
306,390
|
|
$
|
141,471
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
$
|
0.92
|
|
$
|
0.32
|
|
$
|
1.27
|
|
$
|
0.60
|
Net income per share
- diluted
|
$
|
0.91
|
|
$
|
0.32
|
|
$
|
1.26
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
242,059
|
|
238,331
|
|
241,152
|
|
236,153
|
Diluted
|
243,867
|
|
240,115
|
|
242,690
|
|
237,336
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i) Exclusive of amortization, which is
shown separately.
|
AGNICO EAGLE MINES LIMITED
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(thousands of United States dollars, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
222,654
|
|
$
|
76,667
|
|
$
|
306,390
|
|
$
|
141,471
|
Add (deduct)
adjusting items:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
173,173
|
|
143,293
|
|
456,147
|
|
395,738
|
Deferred income and
mining taxes
|
46,927
|
|
36,787
|
|
75,350
|
|
28,104
|
Unrealized gain on
warrants
|
(20,854)
|
|
(440)
|
|
(52,682)
|
|
(492)
|
Stock-based
compensation
|
12,194
|
|
12,269
|
|
38,724
|
|
39,267
|
Foreign currency
translation loss (gain)
|
4,321
|
|
(1,347)
|
|
11,489
|
|
4,990
|
Other
|
(4,034)
|
|
8,093
|
|
(11,099)
|
|
(5,627)
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
(2,457)
|
|
112
|
|
(847)
|
|
1,457
|
Income
taxes
|
32,630
|
|
17,087
|
|
12,477
|
|
(1,183)
|
Inventories
|
(51,084)
|
|
(60,043)
|
|
(93,686)
|
|
(81,074)
|
Other current
assets
|
6,567
|
|
43,705
|
|
4,437
|
|
(37,495)
|
Accounts payable and
accrued liabilities
|
30,151
|
|
70,504
|
|
34,265
|
|
122,510
|
Interest
payable
|
12,350
|
|
2,546
|
|
7,579
|
|
16,558
|
Cash provided by
operating activities
|
462,538
|
|
349,233
|
|
788,544
|
|
624,224
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(195,334)
|
|
(252,659)
|
|
(534,604)
|
|
(686,943)
|
Proceeds from sale of
property, plant and mine development
|
354
|
|
634
|
|
727
|
|
2,863
|
Net sales (purchases)
of short-term investments
|
1,255
|
|
135
|
|
370
|
|
(684)
|
Net proceeds from
sale of equity securities and other investments
|
—
|
|
6,914
|
|
8,759
|
|
7,822
|
Purchases of equity
securities and other investments
|
(12,168)
|
|
(853)
|
|
(37,049)
|
|
(29,731)
|
Cash used in
investing activities
|
(205,893)
|
|
(245,829)
|
|
(561,797)
|
|
(706,673)
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from Credit
Facility
|
75,000
|
|
80,000
|
|
1,075,000
|
|
220,000
|
Repayment of Credit
Facility
|
(325,000)
|
|
(80,000)
|
|
(1,075,000)
|
|
(220,000)
|
Proceeds from Senior
Notes issuance
|
—
|
|
—
|
|
200,000
|
|
—
|
Repayment of Senior
Notes
|
—
|
|
—
|
|
(360,000)
|
|
—
|
Long-term debt
financing costs
|
—
|
|
—
|
|
(1,597)
|
|
—
|
Repayment of lease
obligations
|
(4,119)
|
|
(3,676)
|
|
(11,598)
|
|
(10,510)
|
Dividends
paid
|
(39,844)
|
|
(21,979)
|
|
(118,407)
|
|
(71,221)
|
Repurchase of common
shares for stock-based compensation plans
|
—
|
|
(325)
|
|
(35,930)
|
|
(24,395)
|
Proceeds on exercise
of stock options
|
21,236
|
|
59,422
|
|
89,289
|
|
133,243
|
Common shares
issued
|
3,925
|
|
3,807
|
|
9,853
|
|
11,584
|
Cash (used in)
provided by financing activities
|
(268,802)
|
|
37,249
|
|
(228,390)
|
|
38,701
|
Effect of exchange rate changes on cash and cash
equivalents
|
(1,516)
|
|
(966)
|
|
(4,370)
|
|
341
|
Net (decrease) increase in cash and cash equivalents
during the period
|
(13,673)
|
|
139,687
|
|
(6,013)
|
|
(43,407)
|
Cash and cash equivalents, beginning of
period
|
329,557
|
|
118,732
|
|
321,897
|
|
301,826
|
Cash and cash equivalents, end of
period
|
$
|
315,884
|
|
$
|
258,419
|
|
$
|
315,884
|
|
$
|
258,419
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
7,417
|
|
$
|
23,344
|
|
$
|
61,864
|
|
$
|
59,083
|
Income and mining
taxes paid
|
$
|
31,086
|
|
$
|
15,912
|
|
$
|
84,139
|
|
$
|
70,364
|
AGNICO EAGLE MINES LIMITED
|
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE
MEASURES
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
Total Production Costs by Mine
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(thousands of United States
dollars)
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
LaRonde
mine
|
|
$
|
64,983
|
|
$
|
54,465
|
|
$
|
126,970
|
|
$
|
165,055
|
LaRonde Zone 5
mine
|
|
12,616
|
|
10,460
|
|
33,754
|
|
28,408
|
Lapa mine
|
|
—
|
|
—
|
|
—
|
|
2,844
|
Goldex
mine
|
|
21,786
|
|
20,263
|
|
58,006
|
|
59,589
|
Meadowbank
Complex
|
|
92,256
|
|
20,551
|
|
210,105
|
|
104,207
|
Meliadine
mine
|
|
66,937
|
|
55,376
|
|
182,523
|
|
83,263
|
Canadian Malartic
mine(i)
|
|
51,654
|
|
52,533
|
|
137,643
|
|
153,433
|
Kittila
mine
|
|
45,747
|
|
44,447
|
|
132,471
|
|
104,080
|
Pinos Altos
mine
|
|
33,131
|
|
34,652
|
|
87,233
|
|
95,572
|
Creston Mascota
mine
|
|
7,585
|
|
8,544
|
|
29,017
|
|
27,382
|
La India
mine
|
|
16,108
|
|
15,055
|
|
51,577
|
|
48,903
|
Production costs per
the condensed interim
consolidated statements of income
|
|
$
|
412,803
|
|
$
|
316,346
|
|
$
|
1,049,299
|
|
$
|
872,736
|
|
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, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
81,199
|
|
|
|
91,664
|
|
|
|
198,688
|
|
|
|
245,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
64,983
|
|
$
|
800
|
|
$
|
54,465
|
|
$
|
594
|
|
$
|
126,970
|
|
$
|
639
|
|
$
|
165,055
|
|
$
|
672
|
Inventory and other
adjustments(iv)
|
|
(14,720)
|
|
(181)
|
|
3,701
|
|
41
|
|
3,825
|
|
19
|
|
4,400
|
|
18
|
Cash operating costs
(co-product basis)
|
|
$
|
50,263
|
|
$
|
619
|
|
$
|
58,166
|
|
$
|
635
|
|
$
|
130,795
|
|
$
|
658
|
|
$
|
169,455
|
|
$
|
690
|
By-product metal
revenues
|
|
(15,488)
|
|
(191)
|
|
(16,519)
|
|
(181)
|
|
(29,878)
|
|
(150)
|
|
(51,241)
|
|
(209)
|
Cash operating costs
(by-product basis)
|
|
$
|
34,775
|
|
$
|
428
|
|
$
|
41,647
|
|
$
|
454
|
|
$
|
100,917
|
|
$
|
508
|
|
$
|
118,214
|
|
$
|
481
|
|
|
|
|
|
|
|
|
|
LaRonde Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
492
|
|
|
|
543
|
|
|
|
1,228
|
|
|
|
1,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
64,983
|
|
$
|
132
|
|
$
|
54,465
|
|
$
|
100
|
|
$
|
126,970
|
|
$
|
103
|
|
$
|
165,055
|
|
$
|
106
|
Production costs
(C$)
|
|
C$
|
88,654
|
|
C$
|
180
|
|
C$
|
72,121
|
|
C$
|
133
|
|
C$
|
169,704
|
|
C$
|
138
|
|
C$
|
219,391
|
|
C$
|
141
|
Inventory and other
adjustments (C$)(v)
|
|
(30,354)
|
|
(62)
|
|
(6,888)
|
|
(13)
|
|
(14,347)
|
|
(12)
|
|
(26,086)
|
|
(16)
|
Minesite operating
costs (C$)
|
|
C$
|
58,300
|
|
C$
|
118
|
|
C$
|
65,233
|
|
C$
|
120
|
|
C$
|
155,357
|
|
C$
|
126
|
|
C$
|
193,305
|
|
C$
|
125
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5 Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
18,981
|
|
|
|
15,438
|
|
|
|
45,496
|
|
|
|
44,596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
12,616
|
|
$
|
665
|
|
$
|
10,460
|
|
$
|
678
|
|
$
|
33,754
|
|
$
|
742
|
|
$
|
28,408
|
|
$
|
637
|
Inventory and other
adjustments(iv)
|
|
349
|
|
18
|
|
(348)
|
|
(23)
|
|
353
|
|
8
|
|
3,146
|
|
71
|
Cash operating costs
(co-product basis)
|
|
$
|
12,965
|
|
$
|
683
|
|
$
|
10,112
|
|
$
|
655
|
|
$
|
34,107
|
|
$
|
750
|
|
$
|
31,554
|
|
$
|
708
|
By-product metal
revenues
|
|
(35)
|
|
(2)
|
|
(32)
|
|
(2)
|
|
(121)
|
|
(3)
|
|
(108)
|
|
(3)
|
Cash operating costs
(by-product basis)
|
|
$
|
12,930
|
|
$
|
681
|
|
$
|
10,080
|
|
$
|
653
|
|
$
|
33,986
|
|
$
|
747
|
|
$
|
31,446
|
|
$
|
705
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5 Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
277
|
|
|
|
221
|
|
|
|
707
|
|
|
|
643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
12,616
|
|
$
|
46
|
|
$
|
10,460
|
|
$
|
47
|
|
$
|
33,754
|
|
$
|
48
|
|
$
|
28,408
|
|
$
|
44
|
Production costs
(C$)
|
|
C$
|
16,876
|
|
C$
|
61
|
|
C$
|
13,858
|
|
C$
|
63
|
|
C$
|
45,441
|
|
C$
|
64
|
|
C$
|
37,743
|
|
C$
|
59
|
Inventory and other
adjustments (C$)(v)
|
|
662
|
|
2
|
|
(484)
|
|
(3)
|
|
610
|
|
1
|
|
4,193
|
|
6
|
Minesite operating
costs (C$)
|
|
C$
|
17,538
|
|
C$
|
63
|
|
C$
|
13,374
|
|
C$
|
60
|
|
C$
|
46,051
|
|
C$
|
65
|
|
C$
|
41,936
|
|
C$
|
65
|
|
|
|
|
|
|
|
|
|
Goldex Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
31,008
|
|
|
|
37,142
|
|
|
|
88,033
|
|
|
|
105,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
21,786
|
|
$
|
703
|
|
$
|
20,263
|
|
$
|
546
|
|
$
|
58,006
|
|
$
|
659
|
|
$
|
59,589
|
|
$
|
563
|
Inventory and other
adjustments(iv)
|
|
(12)
|
|
(1)
|
|
131
|
|
3
|
|
(498)
|
|
(6)
|
|
262
|
|
2
|
Cash operating costs
(co-product basis)
|
|
$
|
21,774
|
|
$
|
702
|
|
$
|
20,394
|
|
$
|
549
|
|
$
|
57,508
|
|
$
|
653
|
|
$
|
59,851
|
|
$
|
565
|
By-product metal
revenues
|
|
(4)
|
|
—
|
|
(11)
|
|
—
|
|
(17)
|
|
—
|
|
(21)
|
|
—
|
Cash operating costs
(by-product basis)
|
|
$
|
21,770
|
|
$
|
702
|
|
$
|
20,383
|
|
$
|
549
|
|
$
|
57,491
|
|
$
|
653
|
|
$
|
59,830
|
|
$
|
565
|
|
|
|
|
|
|
|
|
|
Goldex Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
709
|
|
|
|
712
|
|
|
|
1,899
|
|
|
|
2,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
21,786
|
|
$
|
31
|
|
$
|
20,263
|
|
$
|
28
|
|
$
|
58,006
|
|
$
|
31
|
|
$
|
59,589
|
|
$
|
28
|
Production costs
(C$)
|
|
C$
|
29,057
|
|
C$
|
41
|
|
C$
|
26,776
|
|
C$
|
38
|
|
C$
|
77,663
|
|
C$
|
41
|
|
C$
|
79,133
|
|
C$
|
38
|
Inventory and other
adjustments (C$)(v)
|
|
529
|
|
1
|
|
214
|
|
—
|
|
200
|
|
—
|
|
455
|
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
29,586
|
|
C$
|
42
|
|
C$
|
26,990
|
|
C$
|
38
|
|
C$
|
77,863
|
|
C$
|
41
|
|
C$
|
79,588
|
|
C$
|
38
|
|
|
|
|
|
|
|
|
|
Meadowbank Complex
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
74,921
|
|
|
|
15,736
|
|
|
|
140,679
|
|
|
|
96,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
92,256
|
|
$
|
1,231
|
|
$
|
20,551
|
|
$
|
1,306
|
|
$
|
210,105
|
|
$
|
1,494
|
|
$
|
104,207
|
|
$
|
1,079
|
Inventory and other
adjustments(iv)
|
|
2,394
|
|
32
|
|
(3,700)
|
|
(235)
|
|
3,095
|
|
22
|
|
(7,431)
|
|
(77)
|
Cash operating costs
(co-product basis)
|
|
$
|
94,650
|
|
$
|
1,263
|
|
$
|
16,851
|
|
$
|
1,071
|
|
$
|
213,200
|
|
$
|
1,516
|
|
$
|
96,776
|
|
$
|
1,002
|
By-product metal
revenues
|
|
(235)
|
|
(3)
|
|
(558)
|
|
(36)
|
|
(565)
|
|
(5)
|
|
(1,118)
|
|
(11)
|
Cash operating costs
(by-product basis)
|
|
$
|
94,415
|
|
$
|
1,260
|
|
$
|
16,293
|
|
$
|
1,035
|
|
$
|
212,635
|
|
$
|
1,511
|
|
$
|
95,658
|
|
$
|
991
|
|
|
|
|
|
|
|
|
|
Meadowbank Complex
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
907
|
|
|
|
364
|
|
|
|
1,798
|
|
|
|
1,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
92,256
|
|
$
|
102
|
|
$
|
20,551
|
|
$
|
56
|
|
$
|
210,105
|
|
$
|
117
|
|
$
|
104,207
|
|
$
|
62
|
Production costs
(C$)
|
|
C$
|
124,802
|
|
C$
|
138
|
|
C$
|
27,743
|
|
C$
|
76
|
|
C$
|
283,116
|
|
C$
|
157
|
|
C$
|
138,973
|
|
C$
|
83
|
Inventory and other
adjustments (C$)(v)
|
|
1,088
|
|
1
|
|
(5,047)
|
|
(14)
|
|
(4,994)
|
|
(2)
|
|
(7,698)
|
|
(4)
|
Minesite operating
costs (C$)
|
|
C$
|
125,890
|
|
C$
|
139
|
|
C$
|
22,696
|
|
C$
|
62
|
|
C$
|
278,122
|
|
C$
|
155
|
|
C$
|
131,275
|
|
C$
|
79
|
|
|
|
|
|
|
|
|
|
Meliadine Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)(vi)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
94,775
|
|
|
|
78,093
|
|
|
|
224,125
|
|
|
|
109,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
66,937
|
|
$
|
706
|
|
$
|
55,376
|
|
$
|
709
|
|
$
|
182,523
|
|
$
|
814
|
|
$
|
83,263
|
|
$
|
760
|
Inventory and other
adjustments(iv)
|
|
(919)
|
|
(9)
|
|
2,845
|
|
37
|
|
2,044
|
|
9
|
|
1,679
|
|
16
|
Cash operating costs
(co-product basis)
|
|
$
|
66,018
|
|
$
|
697
|
|
$
|
58,221
|
|
$
|
746
|
|
$
|
184,567
|
|
$
|
823
|
|
$
|
84,942
|
|
$
|
776
|
By-product metal
revenues
|
|
(106)
|
|
(2)
|
|
—
|
|
—
|
|
(308)
|
|
(1)
|
|
(18)
|
|
—
|
Cash operating costs
(by-product basis)
|
|
$
|
65,912
|
|
$
|
695
|
|
$
|
58,221
|
|
$
|
746
|
|
$
|
184,259
|
|
$
|
822
|
|
$
|
84,924
|
|
$
|
776
|
|
|
|
|
|
|
|
|
|
Meliadine Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)(vii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
368
|
|
|
|
312
|
|
|
|
1,012
|
|
|
|
447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
66,937
|
|
$
|
182
|
|
$
|
55,376
|
|
$
|
177
|
|
$
|
182,523
|
|
$
|
180
|
|
83,263
|
|
$
|
186
|
Production costs
(C$)
|
|
C$
|
89,673
|
|
C$
|
244
|
|
C$
|
73,018
|
|
C$
|
234
|
|
C$
|
246,043
|
|
C$
|
243
|
|
C$
|
110,085
|
|
C$
|
246
|
Inventory and other
adjustments (C$)(v)
|
|
(1,258)
|
|
(4)
|
|
3,790
|
|
12
|
|
(675)
|
|
—
|
|
2,759
|
|
6
|
Minesite operating
costs (C$)
|
|
C$
|
88,415
|
|
C$
|
240
|
|
C$
|
76,808
|
|
C$
|
246
|
|
C$
|
245,368
|
|
C$
|
243
|
|
C$
|
112,844
|
|
C$
|
252
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(i)(ii)(viii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
63,093
|
|
|
|
81,573
|
|
|
|
179,016
|
|
|
|
249,554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
51,654
|
|
$
|
819
|
|
$
|
52,533
|
|
$
|
644
|
|
$
|
137,643
|
|
$
|
769
|
|
$
|
153,433
|
|
$
|
615
|
Inventory and other
adjustments(iv)
|
|
(962)
|
|
(16)
|
|
(755)
|
|
(9)
|
|
2,677
|
|
15
|
|
347
|
|
1
|
Cash operating costs
(co-product basis)
|
|
$
|
50,692
|
|
$
|
803
|
|
$
|
51,778
|
|
$
|
635
|
|
$
|
140,320
|
|
$
|
784
|
|
$
|
153,780
|
|
$
|
616
|
By-product metal
revenues
|
|
(1,995)
|
|
(31)
|
|
(1,645)
|
|
(20)
|
|
(5,015)
|
|
(28)
|
|
(4,673)
|
|
(19)
|
Cash operating costs
(by-product basis)
|
|
$
|
48,697
|
|
$
|
772
|
|
$
|
50,133
|
|
$
|
615
|
|
$
|
135,305
|
|
$
|
756
|
|
$
|
149,107
|
|
$
|
597
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per
Tonne(i)(iii)(ix)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
2,251
|
|
|
|
2,645
|
|
|
|
6,800
|
|
|
|
7,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
51,654
|
|
$
|
23
|
|
$
|
52,533
|
|
$
|
20
|
|
$
|
137,643
|
|
$
|
20
|
|
$
|
153,433
|
|
$
|
20
|
Production costs
(C$)
|
|
C$
|
68,840
|
|
C$
|
31
|
|
C$
|
70,590
|
|
C$
|
27
|
|
C$
|
184,691
|
|
C$
|
27
|
|
C$
|
204,182
|
|
C$
|
26
|
Inventory and other
adjustments (C$)(v)
|
|
(3,016)
|
|
(2)
|
|
(775)
|
|
(1)
|
|
(1,102)
|
|
—
|
|
931
|
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
65,824
|
|
C$
|
29
|
|
C$
|
69,815
|
|
C$
|
26
|
|
C$
|
183,589
|
|
C$
|
27
|
|
C$
|
205,113
|
|
C$
|
26
|
|
|
|
|
|
|
|
|
|
Kittila Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
53,149
|
|
|
|
61,343
|
|
|
|
163,069
|
|
|
|
130,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
45,747
|
|
$
|
861
|
|
$
|
44,447
|
|
$
|
725
|
|
$
|
132,471
|
|
$
|
812
|
|
$
|
104,080
|
|
$
|
796
|
Inventory and other
adjustments(iv)
|
|
(2,477)
|
|
(47)
|
|
33
|
|
—
|
|
(5,698)
|
|
(35)
|
|
(8,794)
|
|
(67)
|
Cash operating costs
(co-product basis)
|
|
$
|
43,270
|
|
$
|
814
|
|
$
|
44,480
|
|
$
|
725
|
|
$
|
126,773
|
|
$
|
777
|
|
$
|
95,286
|
|
$
|
729
|
By-product metal
revenues
|
|
(76)
|
|
(1)
|
|
(17)
|
|
—
|
|
(169)
|
|
(1)
|
|
(149)
|
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
|
43,194
|
|
$
|
813
|
|
$
|
44,463
|
|
$
|
725
|
|
$
|
126,604
|
|
$
|
776
|
|
$
|
95,137
|
|
$
|
728
|
|
|
|
|
|
|
|
|
|
Kittila Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
429
|
|
|
|
507
|
|
|
|
1,349
|
|
|
|
1,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
45,747
|
|
$
|
107
|
|
$
|
44,447
|
|
$
|
88
|
|
$
|
132,471
|
|
$
|
98
|
|
$
|
104,080
|
|
$
|
93
|
Production costs
(€)
|
|
€
|
37,531
|
|
€
|
87
|
|
€
|
39,959
|
|
€
|
79
|
|
€
|
116,189
|
|
€
|
86
|
|
€
|
92,757
|
|
€
|
83
|
Inventory and other
adjustments (€)(v)
|
|
(1,924)
|
|
(4)
|
|
(259)
|
|
(1)
|
|
(5,118)
|
|
(4)
|
|
(8,429)
|
|
(8)
|
Minesite operating
costs (€)
|
|
€
|
35,607
|
|
€
|
83
|
|
€
|
39,700
|
|
€
|
78
|
|
€
|
111,071
|
|
€
|
82
|
|
€
|
84,328
|
|
€
|
75
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
30,937
|
|
|
|
34,832
|
|
|
|
78,127
|
|
|
|
119,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
33,131
|
|
$
|
1,071
|
|
$
|
34,652
|
|
$
|
995
|
|
$
|
87,233
|
|
$
|
1,117
|
|
$
|
95,572
|
|
$
|
801
|
Inventory and other
adjustments(iv)
|
|
992
|
|
32
|
|
649
|
|
18
|
|
(4,030)
|
|
(52)
|
|
2,885
|
|
24
|
Cash operating costs
(co-product basis)
|
|
$
|
34,123
|
|
$
|
1,103
|
|
$
|
35,301
|
|
$
|
1,013
|
|
$
|
83,203
|
|
$
|
1,065
|
|
$
|
98,457
|
|
$
|
825
|
By-product metal
revenues
|
|
(13,164)
|
|
(426)
|
|
(9,353)
|
|
(268)
|
|
(25,380)
|
|
(325)
|
|
(26,500)
|
|
(222)
|
Cash operating costs
(by-product basis)
|
|
$
|
20,959
|
|
$
|
677
|
|
$
|
25,948
|
|
$
|
745
|
|
$
|
57,823
|
|
$
|
740
|
|
$
|
71,957
|
|
$
|
603
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of
tonnes)
|
|
|
|
558
|
|
|
|
519
|
|
|
|
1,252
|
|
|
|
1,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
33,131
|
|
$
|
59
|
|
$
|
34,652
|
|
$
|
67
|
|
$
|
87,233
|
|
$
|
70
|
|
$
|
95,572
|
|
$
|
64
|
Inventory and other
adjustments(v)
|
|
609
|
|
2
|
|
393
|
|
—
|
|
(6,509)
|
|
(6)
|
|
2,081
|
|
1
|
Minesite operating
costs
|
|
$
|
33,740
|
|
$
|
61
|
|
$
|
35,045
|
|
$
|
67
|
|
$
|
80,724
|
|
$
|
64
|
|
$
|
97,653
|
|
$
|
65
|
|
|
|
|
|
|
|
|
|
Creston Mascota Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
6,567
|
|
|
|
9,596
|
|
|
|
34,397
|
|
|
|
41,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
7,585
|
|
$
|
1,155
|
|
$
|
8,544
|
|
$
|
890
|
|
$
|
29,017
|
|
$
|
844
|
|
$
|
27,382
|
|
$
|
660
|
Inventory and other
adjustments(iv)
|
|
129
|
|
20
|
|
448
|
|
47
|
|
(88)
|
|
(3)
|
|
100
|
|
3
|
Cash operating costs
(co-product basis)
|
|
$
|
7,714
|
|
$
|
1,175
|
|
$
|
8,992
|
|
$
|
937
|
|
$
|
28,929
|
|
$
|
841
|
|
$
|
27,482
|
|
$
|
663
|
By-product metal
revenues
|
|
(2,651)
|
|
(404)
|
|
(2,586)
|
|
(269)
|
|
(9,481)
|
|
(276)
|
|
(8,097)
|
|
(195)
|
Cash operating costs
(by-product basis)
|
|
$
|
5,063
|
|
$
|
771
|
|
$
|
6,406
|
|
$
|
668
|
|
$
|
19,448
|
|
$
|
565
|
|
$
|
19,385
|
|
$
|
468
|
|
|
|
|
|
|
|
|
|
Creston Mascota Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Tonne(iii)
|
|
September 30, 2019
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
188
|
|
|
|
284
|
|
|
|
526
|
|
|
|
973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
7,585
|
|
$
|
40
|
|
$
|
8,544
|
|
$
|
30
|
|
$
|
29,017
|
|
$
|
55
|
|
$
|
27,382
|
|
$
|
28
|
Inventory and other
adjustments(v)
|
|
(127)
|
|
—
|
|
316
|
|
1
|
|
(765)
|
|
(1)
|
|
(591)
|
|
—
|
Minesite operating
costs
|
|
$
|
7,458
|
|
$
|
40
|
|
$
|
8,860
|
|
$
|
31
|
|
$
|
28,252
|
|
$
|
54
|
|
$
|
26,791
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
La India Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
Nine Months Ended
|
Per Ounce of Gold
Produced(ii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
22,776
|
|
|
|
18,386
|
|
|
|
62,581
|
|
|
|
61,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
16,108
|
|
$
|
707
|
|
$
|
15,055
|
|
$
|
819
|
|
$
|
51,577
|
|
$
|
824
|
|
$
|
48,903
|
|
$
|
794
|
Inventory and other
adjustments(iv)
|
|
1,180
|
|
52
|
|
1,501
|
|
81
|
|
(1,699)
|
|
(27)
|
|
2,106
|
|
34
|
Cash operating costs
(co-product basis)
|
|
$
|
17,288
|
|
$
|
759
|
|
$
|
16,556
|
|
$
|
900
|
|
$
|
49,878
|
|
$
|
797
|
|
$
|
51,009
|
|
$
|
828
|
By-product metal
revenues
|
|
(441)
|
|
(19)
|
|
(526)
|
|
(28)
|
|
(1,121)
|
|
(18)
|
|
(1,771)
|
|
(28)
|
Cash operating costs
(by-product basis)
|
|
$
|
16,847
|
|
$
|
740
|
|
$
|
16,030
|
|
$
|
872
|
|
$
|
48,757
|
|
$
|
779
|
|
$
|
49,238
|
|
$
|
800
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
Per Tonne(iii)
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of
tonnes)
|
|
|
|
1,559
|
|
|
|
1,102
|
|
|
|
3,869
|
|
|
|
3,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
16,108
|
|
$
|
10
|
|
$
|
15,055
|
|
$
|
14
|
|
$
|
51,577
|
|
$
|
13
|
|
$
|
48,903
|
|
$
|
12
|
Inventory and other
adjustments(v)
|
|
1,052
|
|
1
|
|
1,285
|
|
1
|
|
(2,333)
|
|
—
|
|
698
|
|
—
|
Minesite operating
costs
|
|
$
|
17,160
|
|
$
|
11
|
|
$
|
16,340
|
|
$
|
15
|
|
$
|
49,244
|
|
$
|
13
|
|
$
|
49,601
|
|
$
|
12
|
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 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 during these
periods as commercial production at the Tiriganiaq open pit deposit
has not yet been achieved.
|
|
(vii) The Meliadine
mine's cost calculations per tonne for the three and nine months
ended September 30, 2020 exclude 13,374 tonnes of ore from the
Tiriganiaq open pit deposit, which were processed during these
periods as commercial production at the Tiriganiaq open pit deposit
has not yet been achieved.
|
|
(viii) 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 during these periods as commercial production
at the Barnat deposit has not yet been achieved.
|
|
(ix) 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 during these periods as commercial production at the
Barnat deposit has not yet been achieved.
|
Reconciliation of Production Costs to All-in
Sustaining Costs per Ounce of
Gold Produced
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Production costs per
the condensed interim consolidated statements of income
(thousands of United States dollars)
|
$
|
412,803
|
|
$
|
316,346
|
|
$
|
1,049,299
|
|
$
|
872,736
|
Adjusted gold
production (ounces)(i)(ii)(iii)(iv)(v)
|
477,406
|
|
443,803
|
|
1,214,211
|
|
1,204,902
|
Production costs per
ounce of adjusted gold production
|
$
|
865
|
|
$
|
713
|
|
$
|
864
|
|
$
|
724
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory and other
adjustments(vi)
|
(30)
|
|
10
|
|
—
|
|
(3)
|
Total cash costs per
ounce of gold produced (co-product
basis)(vii)
|
$
|
835
|
|
$
|
723
|
|
$
|
864
|
|
$
|
721
|
By-product metal
revenues
|
(71)
|
|
(70)
|
|
(59)
|
|
(78)
|
Total cash costs per
ounce of gold produced (by-product
basis)(vii)
|
$
|
764
|
|
$
|
653
|
|
$
|
805
|
|
$
|
643
|
Adjustments:
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
189
|
|
179
|
|
195
|
|
174
|
General and
administrative expenses (including stock options)
|
55
|
|
62
|
|
68
|
|
71
|
Non-cash reclamation
provision, sustaining leases and other
|
8
|
|
9
|
|
10
|
|
10
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
1,016
|
|
$
|
903
|
|
$
|
1,078
|
|
$
|
898
|
By-product metal
revenues
|
71
|
|
70
|
|
59
|
|
78
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,087
|
|
$
|
973
|
|
$
|
1,137
|
|
$
|
976
|
Notes:
|
|
(i) Adjusted gold
production for the three and nine months ended September 30,
2020 excludes 1,982 ounces of payable 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.
|
|
(ii) Adjusted gold
production for the three and nine months ended September 30,
2020 excludes 13,305 and 18,930 ounces of payable gold from the
Barnat deposit at the Canadian Malartic mine, respectively, which
were produced prior to the achievement of commercial production at
the Barnat deposit.
|
|
(iii) Adjusted gold
production for the three and nine months ended September 30,
2019 excludes 33,134 and 35,281 ounces of payable gold from the
Amaruq deposit at the Meadowbank mine, respectively, which were
produced prior to the achievement of commercial production at the
Amaruq deposit.
|
|
(iv) Adjusted gold
production for the nine months ended September 30, 2019
excludes 47,281 ounces of payable gold production at the Meliadine
mine, which were produced prior to the achievement of commercial
production.
|
|
(v) Adjusted gold
production for the nine months ended September 30, 2019 excludes 5
ounces of payable gold production at the Lapa mine, which were
credited to the Company as a result of final refining
reconciliations following the cessation of mining and processing
operations at the Lapa mine on December 31, 2018.
|
|
(vi) 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.
|
|
(vii) 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 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)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income for the period
|
$
|
222,654
|
|
$
|
76,667
|
|
$
|
306,390
|
|
$
|
141,471
|
Income and mining
taxes expense
|
110,035
|
|
62,789
|
|
167,181
|
|
93,326
|
Other expenses
(income)
|
9,132
|
|
1,549
|
|
37,407
|
|
(1,553)
|
Foreign currency
translation loss (gain)
|
4,321
|
|
(1,347)
|
|
11,489
|
|
4,990
|
(Gain) loss on
derivative financial instruments
|
(29,724)
|
|
2,378
|
|
(49,297)
|
|
(10,296)
|
Finance
costs
|
21,439
|
|
25,721
|
|
74,201
|
|
78,797
|
General and
administrative
|
26,291
|
|
27,336
|
|
82,380
|
|
85,555
|
Amortization of
property, plant, and mine development
|
173,173
|
|
143,293
|
|
456,147
|
|
395,738
|
Exploration and
corporate development
|
30,488
|
|
28,227
|
|
74,468
|
|
81,029
|
Operating margin(i)
|
$
|
567,809
|
|
$
|
366,613
|
|
$
|
1,160,366
|
|
$
|
869,057
|
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:http://www.prnewswire.com/news-releases/agnico-eagle-reports-third-quarter-2020-results---strong-operational-performance-and-record-realized-gold-prices-drive-strong-quarterly-free-cash-flow-dividend-increased-by-75-ongoing-exploration-success-reported-at-existing-op-301162112.html
SOURCE Agnico Eagle Mines Limited