(All amounts expressed in U.S. dollars
unless otherwise noted)
RECORD QUARTERLY PRODUCTION; RECORD
ANNUAL EARNINGS AND CASHFLOW; RECORD RESERVES; GOLD PRODUCTION
FORECAST TO GROW 24% FROM 2020 THROUGH 2024; ODYSSEY PROJECT AND
AMARUQ UNDERGROUND APPROVED FOR DEVELOPMENT
Stock Symbol: AEM (NYSE and TSX)
TORONTO,
Feb. 11, 2021 /CNW/ -
Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM)
("Agnico Eagle" or the "Company") today reported quarterly net
income of $205.2 million, or net
income of $0.85 per share, for
the fourth quarter of 2020. This result includes non-cash
mark-to-market gains on warrants of $29.3
million ($0.12 per share),
foreign currency translation gains on deferred tax liabilities of
$28.8 million ($0.12 per share), derivative gains on financial
instruments of $21.7 million
($0.09 per share), losses on
environmental remediation of $16.6
million ($0.07 per share),
non-cash foreign currency translation losses of $11.0 million ($0.04 per share) and various other adjustment
losses of $9.1 million ($0.04 per share). Excluding these items
would result in adjusted net income1 of $162.1 million or $0.67 per share for the fourth quarter of
2020. For the fourth quarter of 2019, the Company reported
net income of $331.7 million or
$1.39 per share.
Included in the fourth quarter of 2020 net income, and not
adjusted above, are non-cash stock option expense of $3.0 million ($0.01
per share) and workforce costs of employees affected by the
COVID-19 pandemic (primarily Nunavut-based) of $2.3
million ($0.01 per
share).
In the full year 2020, the Company reported record net
income of $511.6 million, or
$2.12 per share. This compares
with the full year 2019, when net income was $473.2 million, or $2.00 per share.
In the fourth quarter of 2020, cash provided by operating
activities was $403.5 million
($386.8 million before changes in
non-cash components of working capital), compared to the fourth
quarter of 2019 when cash provided by operating activities was
$257.5 million ($263.8 million before changes in non-cash
components of working capital). The cash provided by
operating activities in the fourth quarter of 2020 resulted in
another strong quarter of free cash-flow2
generation.
______________
|
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".
|
In the full year 2020, cash provided by operating
activities was $1,192 million
($1,211 million before changes in
non-cash components of working capital), compared to the full year
2019 when cash provided by operating activities was
$882 million ($867 million before changes in non-cash
components of working capital). The cash provided by
operating activities in the full year of 2020 sets a yearly record
for the Company and resulted in strong annual free cash-flow
generation.
The decrease in net income in the fourth quarter of 2020,
compared to the prior-year period, is primarily due to the
impairment reversal (net of tax) relating to the Meliadine mine of
$223.4 million in the fourth quarter
of 2019, partially offset by higher revenues from mining operations
resulting from higher average realized gold and silver prices as
well as changes in non-cash items related to mark-to-market gains
on warrants and other financial instruments owned by the
Company.
The increase in net income in the full year 2020, compared
to the prior-year, is primarily due to higher average realized gold
prices as well as changes in non-cash items related to
mark-to-market gains on warrants and other financial instruments
owned by the Company, partially offset by the impairment reversal
(net of tax) relating to the Meliadine mine of $223.4 million in the fourth quarter of 2019,
higher amortization costs from the Meliadine and Canadian Malartic
mines and lower gold sales volume. 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.
The increase in cash provided by operating activities in
the fourth 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,
partially offset by higher cash taxes related to higher operating
margins in the quarter.
The increase in cash provided by operating activities in
the full year 2020, compared to the prior-year, 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, 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 cash
taxes related to higher operating margins.
"Despite 2020 being very challenging, we ended the year
with record quarterly gold production, our largest gold reserve
base and our best ever safety performance as a result of the
excellent work of our employees. With gold production
expected to increase by approximately 300,000 ounces in 2021,
combined with an anticipated decline in total cash costs per ounce
of 6%, we expect to continue to generate strong net free cash flow
in 2021 while we steadily advance our pipeline of growth projects,"
said Sean Boyd, Agnico Eagle's Chief
Executive Officer. "As we move forward, our focus will be on
maximizing the full potential of our existing mines through mineral
reserve additions and incremental production expansions while also
building new projects like the recently approved underground mines
at Canadian Malartic and Amaruq. At the same time, we will
continue to look to strengthen our business and build additional
value by adding projects with excellent potential to grow and
become important cash flow generators, like the recently acquired
Hope Bay project," added Mr. Boyd.
Fourth quarter of 2020 and full year 2020 highlights
include:
- Record quarterly gold production –
Payable gold production3 in the fourth quarter of
2020 was 501,445 ounces (including 15,504 ounces of pre-commercial
gold production from the IVR open pit at the Meadowbank Complex and
the Tiriganiaq open pit at Meliadine) at production costs per ounce
of $771, total cash costs per
ounce4 of $701 and all-in
sustaining costs ("AISC") per ounce5 of $985. Payable gold production in the full year
2020 was 1,736,568 ounces (including 36,416 ounces of
pre-commercial gold production from the IVR deposit, Tiriganiaq
open pit, and Barnat pit at Canadian Malartic) at production costs
per ounce of $838, with total cash
costs per ounce of $775. This
compares to the most recent guidance of 1.68 to 1.73 million ounces
of gold at total cash costs per ounce of $740 to $790. AISC
per ounce in the full year 2020 were $1,051, compared to the most recent guidance of
$1,025 to $1,075 per ounce. Production costs, total cash
costs per ounce and AISC per ounce exclude the pre-commercial
production ounces from IVR, Tiriganiaq and Barnat
- Optimization of existing assets supports 24% Growth in
Expected Production From 2020 Through 2024 – The
mid-point of gold production guidance for 2021 and 2022 is 2.05 and
2.1 million ounces, respectively (unchanged from previous guidance
issued in February 2020). The
mid-point for gold production guidance for 2023 is 2.125 million
ounces, while gold production in 2024 is expected to
be approximately 2.15 million ounces. At this time, gold
production guidance excludes production from the newly acquired
Hope Bay deposits
- Cost guidance for 2021 essentially in line with prior
year's guidance – In 2021, total cash costs per
ounce are forecast to be between $700
and $750. This compares to last
year's guidance range for 2021 of $675 to $725,
before adding COVID-19 related costs of approximately $10 per ounce. In 2021, AISC are forecast to be
between$950 and $1,000 per ounce.
Although the Company expects some variability in operating costs
over the period, total cash costs per ounce and AISC per ounce are
expected to average approximately $750 and $990 per
ounce, respectively, through 2024. In 2021, capital expenditures
are forecast to be approximately $803
million. Annual capital expenditures are expected to be
approximately $750 million to
$800 million through
2024
- Gold mineral reserves increase to record level
– Year-end 2020 gold mineral reserves increased by
12% to 24.1 million ounces of gold (348 million tonnes grading 2.15
grams per tonne ("g/t") gold). Approximately 1.1 million ounces of
the increase comes from operating mines (primarily the LaRonde
Complex, Canadian Malartic, Goldex, Meliadine, Pinos Altos and Kittila) with the balance
coming from the Hammond Reef project. Gold contained in measured
and indicated mineral resources decreased by 15% to 15.3 million
ounces (341million tonnes grading 1.40g/t gold), largely due to
conversion into mineral reserves. Inferred mineral resources
increased by 9% to 23.4 million ounces (283million tonnes grading
2.57g/t gold), largely due to additions at the East Gouldie deposit
at Canadian Malartic
- 2021 exploration budget increased by over 40% with a
focus on expansion and conversion drilling at existing properties
and delineation of new target areas – The
exploration budget in 2021 has been increased to approximately
$163 million (from $113 million in 2020). The focus will be on the
expansion of mineral reserves and mineral resources at operating
mines and pipeline projects. In addition, new target areas will be
tested at LaRonde, Kittila, East Gouldie, Santa Gertrudis and Hope Bay
- Near-Term Opportunities Support Production Growth in
2021 to 2023; Kittila and Meliadine expansions progressing as
planned; Amaruq underground and Odyssey projects approved for
development
-
- Kittila and Meliadine – At Kittila,
the mill expansion was completed in the fourth quarter of 2020
(ahead of schedule) and shaft sinking remains on budget despite
delays related to COVID-19 travel restrictions impacting the
Canadian-based contractor. At Meliadine, the Phase 2 expansion
remains on track with mill throughput expected to increase from an
average of approximately 4,600 tonnes per day ("tpd") in 2021 to
6,000 tpd in 2025
- Amaruq underground project – First
gold production is expected in 2022. Over the current estimated
5-year mine life, approximately 500,000 ounces of gold are expected
to be produced with a positive impact expected on overall
production and costs at the Meadowbank Complex in 2023 to 2026.
Additional mineral reserves may be available for mining, but will
be contingent on the development of new open pit ore sources
- Odyssey project – Initial production
is expected in 2023 from the underground ramp. Shaft sinking and
development to access the higher-grade East Gouldie deposit is
expected to continue until the end of 2028. Starting in 2029, the
mine is expected to produce an average of 545,400 ounces of gold
per year (100% basis) at total cash costs per ounce of $630. Over an expected 17-year mine life, total
payable gold production is expected to be approximately 6.93
million ounces (100% basis)
- Project pipeline provides future production
optionality: Upper Beaver technical evaluations advancing; Hope Bay
acquisition completed; Hammond Reef declares Initial Mineral
Reserves
-
- Upper Beaver – 2020 drilling focused
on infilling and expanding mineral resources. Additional
drilling is planned at Upper Beaver in 2021 to test an open pit
concept and an internal technical study is expected to be completed
at year-end 2021
- Hope Bay – In 2021, the Company
expects to continue mining at the Doris deposit while undertaking
optimization efforts, as well as initiating a property wide
exploration program and evaluating the Madrid and Boston deposits for future production. Hope
Bay is expected to be approximately cash flow neutral in 2021, and
is currently not included in the Company's production or cost
guidance for 2021
- Hammond Reef – A positive internal
technical study was completed in 2020, resulting in the declaration
of the first open pit mineral reserves of 3.32 million ounces of
gold (123.5 million tonnes grading 0.84 g/t gold).
Going forward, the Company will continue to evaluate
optimization of the deposit and potential mining scenarios to
further improve project economics
- A quarterly dividend of $0.35 per share has been declared
______________
|
3Payable
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.
|
4Total
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".
|
5AISC per
ounce is a non-GAAP measure and, unless otherwise specified, is
reported on a by-product basis. For a reconciliation to
production costs and for all-in sustaining costs on a co-product
basis, see "Reconciliation of Non-GAAP Financial Performance
Measures" below. See also "Note Regarding Certain Measures of
Performance".
|
Fourth Quarter and Full Year 2020 Financial and
Production Highlights
In the fourth quarter of 2020, strong operational
performance continued at the Company's eight mines, which led to
record quarterly payable gold of 501,445 ounces (including
pre-commercial gold production of 10,995 ounces from the IVR pit at
the Meadowbank Complex and 4,509 ounces from the Tiriganiaq open
pit at Meliadine), compared to 494,678 ounces in the prior-year
period (which included 3,137 ounces of pre-commercial gold
production from the Barnat deposit at Canadian
Malartic).
The higher gold production in the fourth 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 the LaRonde Complex due to lower
grade and throughput as a result of adjustments to the mining
sequences and lower production from the Kittila mine due to a
planned shutdown at the start of the quarter.
In the full year 2020, payable gold production was
1,736,568 ounces (including pre-commercial gold production of
18,930 ounces from the Barnat deposit at Canadian Malartic, 10,995
ounces from the IVR pit at the Meadowbank Complex and 6,491 ounces
from the Tiriganiaq open pit at Meliadine), compared to 1,782,147
ounces in the prior-year period (which included an aggregate of
85,699 ounces of pre-commercial gold production at the Meliadine
mine, the Amaruq satellite deposit and the Barnat
deposit).
The lower gold production in the full year 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 a full year
of production from the Meliadine mine which achieved commercial
production in May 2019 and strong
performance at the Kittila mine. A detailed description of
the production at each mine is set out below.
Production costs per ounce in the fourth quarter of 2020
were $771, compared to $763 in the prior-year period. Total cash
costs per ounce in the fourth quarter of 2020 were $701, compared to $745 in the prior-year period.
In the fourth quarter of 2020, production costs per ounce
increased when compared to the prior-year period primarily due to
additional costs at all sites related to COVID-19 protocols and
higher production costs at the Kittila mine resulting from
contractor cost pressures and lower gold production. In the
fourth quarter of 2020, total cash costs per ounce decreased when
compared to the prior-year period primarily due to higher
by-product revenues at the LaRonde Complex and the Mexican
operations and the timing of inventory at the Meadowbank Complex,
partially offset by the reasons described above.
Production costs per ounce in the full year 2020 were
$838, compared to $735 in the prior-year. Total cash costs
per ounce in the full year 2020 were $775, compared to $673 in the prior-year period.
Production costs per ounce and total cash costs per ounce
in the full year 2020 increased when compared to the prior-year
primarily due to higher production costs at the Meadowbank Complex
as mining transitioned to the Amaruq satellite deposit, higher
production costs at the Kittila mine as a result of contractor cost
pressures and higher costs per ounce at the Goldex, Canadian
Malartic and Pinos Altos mines,
mainly related to lower gold production at those sites as a result
of temporary shutdowns or reduction in activities in the second
quarter of 2020 related to government mandated COVID-19
restrictions.
AISC in the fourth quarter of 2020 was $985 per ounce, compared to $1,039 in the prior-year period. AISC in
the fourth quarter of 2020 decreased when compared to the
prior-year period primarily due to lower total cash costs per ounce
and lower sustaining capital expenditures.
AISC in the full year 2020 was $1,051 per ounce, compared to $938 in the prior-year period. AISC in the
full year 2020 increased when compared to the prior-year 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; Increased Cash Position at
Year-End 2020
Cash and cash equivalents and short-term investments
increased to $406.5 million at
December 31, 2020, from the September 30, 2020 balance of
$321.5 million, as the Company
continues to generate strong cash flow from operations. As of
December 31, 2020, the outstanding
balance on the Company's unsecured revolving bank credit facility
was nil, and available liquidity under this facility was
$1.2 billion, not including the
uncommitted $300 million accordion
feature.
"In February 2021, Moody's
initiated their inaugural credit rating on Agnico Eagle and have
assigned a Baa2 issuer rating with a Stable outlook. We are
delighted to have a third ratings agency assign a strong investment
grade rating, joining Fitch and DBRS," stated David Smith, Agnico Eagle's Senior Vice
President, Finance and Chief Financial Officer. "Agnico Eagle
has entered a period of strong free cash flow generation as
demonstrated by the record results in 2020. We remain
committed to managing the business such that we maintain a proper
balance of reinvestment in our mines and pipeline projects, having
a strong balance sheet and returning capital to our
shareholders," added Mr. Smith.
Approximately 33% of the Company's 2021 estimated Canadian
dollar exposure is hedged at an average floor price above
1.33 C$/US$. Approximately 34%
of the Company's 2021 estimated Mexican peso exposure is hedged at
an average floor price above 21.00
MXP/US$. Approximately 10% of the Company's 2021
estimated Euro exposure is hedged at an average floor price of
approximately 1.20 US$/EUR. The
Company's full year 2021 cost guidance is based on assumed exchange
rates of 1.30 C$/US$, 20.00 MXP/US$ and 1.20
US$/EUR.
Approximately 50% of the Company's diesel exposure
relating to its Nunavut operations
for 2021 is hedged at prices better than the 2021 cost guidance
assumption of C$0.50 per litre
(excluding transportation costs).
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.
Going forward, the Company anticipates providing updates on its
hedging position on an annual basis.
Capital Expenditures
Total capital expenditures (including sustaining capital)
in the full year 2020 were $773
million, compared to the most recent guidance of
$740 million. The increase in
capital expenditures compared to the previous guidance is primarily
related to additional spending at the Kittila and Meliadine mines
and the Amaruq satellite deposit and the buy-back of a royalty at
the Hammond Reef project. At the Kittila mine, approximately
$20 million of additional capital
expenditures resulted from the acceleration of costs in connection
with the completion of the mill expansion, the construction of the
NP4 tailings pond and the construction of the discharge
waterline. At the Meliadine mine, approximately $10 million of additional capital expenditures
resulted from the higher-than-expected production rate which
resulted in accelerated stripping of the Tiriganiaq pit. At
Amaruq, approximately $11 million of
additional capital expenditures were incurred due to the
acceleration of development at the IVR pit. These increases
in capital expenditures were partially offset by lower capital
expenditures at the Canadian Malartic mine due to higher than
expected pre-production credits from the Barnat pit, and lower
capital expenditures at the Pinos
Altos at La India mines related to the mandatory temporary
suspension of operations in April and May
2020.
The following table sets out capital expenditures
(including sustaining capital) in the fourth quarter and the full
year 2020.
Capital Expenditures
|
|
|
|
|
|
(In thousands of US dollars)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
December 31, 2020
|
|
December 31, 2020
|
|
Sustaining Capital
|
|
|
|
|
|
LaRonde
Complex
|
|
$
|
27,964
|
|
|
$
|
85,745
|
|
|
Canadian Malartic
mine
|
|
18,616
|
|
|
52,482
|
|
|
Meadowbank
Complex
|
|
6,039
|
|
|
55,814
|
|
|
Meliadine
mine
|
|
11,481
|
|
|
41,492
|
|
|
Kittila
mine
|
|
12,602
|
|
|
39,943
|
|
|
Goldex mine
|
|
6,740
|
|
|
24,018
|
|
|
Pinos Altos
mine
|
|
12,295
|
|
|
24,242
|
|
|
La India
mine
|
|
4,473
|
|
|
13,780
|
|
|
Total Sustaining
Capital
|
|
$
|
100,210
|
|
|
$
|
337,516
|
|
|
|
|
|
|
|
|
Development Capital
|
|
|
|
|
|
LaRonde
Complex
|
|
$
|
15,208
|
|
|
35,887
|
|
|
Canadian Malartic
mine
|
|
2,572
|
|
|
3,317
|
|
|
Meadowbank
Complex
|
|
28,483
|
|
|
77,464
|
|
|
Amaruq underground
project
|
|
8,547
|
|
|
27,145
|
|
|
Meliadine
mine
|
|
24,311
|
|
|
88,140
|
|
|
Kittila
mine
|
|
50,397
|
|
|
163,463
|
|
|
Goldex mine
|
|
3,927
|
|
|
13,023
|
|
|
Pinos Altos
mine
|
|
1,297
|
|
|
3,730
|
|
|
La India
mine
|
|
3,999
|
|
|
8,927
|
|
|
Other
|
|
630
|
|
|
14,864
|
|
|
Total Development
Capital
|
|
$
|
139,371
|
|
|
$
|
435,960
|
|
|
Total Capital
Expenditures
|
|
$
|
239,581
|
|
|
$
|
773,476
|
|
|
Dividend Record and Payment Dates for the Fourth
Quarter of 2020
Agnico Eagle's Board of Directors has declared a quarterly
cash dividend of $0.35 per common
share, payable on March 22, 2021 to
shareholders of record as of March 1,
2021. Agnico Eagle has now declared a cash dividend every
year since 1983.
Expected Dividend Record and Payment Dates for fiscal
2021
Record Date
|
Payment Date
|
March 1,
2021*
|
March 22,
2021*
|
June 1,
2021
|
June 15,
2021
|
September 1,
2021
|
September 15,
2021
|
December 1,
2021
|
December 15,
2021
|
Dividend Reinvestment Plan
Please see the following link for information on the
Company's dividend reinvestment plan: Dividend
Reinvestment Plan
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. The second wave of
COVID-19 continues to affect all of the Company's operating
regions. However, during the fourth quarter of 2020,
mining remained an essential business in these regions and none of
the Company's operations were suspended or restricted.
Throughout 2020, the Company continually enhanced its
safety protocols, maximized teleworking where possible and
increased its testing capacity. Five testing facilities now
support the Canadian operations and one testing facility, funded by
the Company, is available to the Kittila operation as well as to
all the residents of Kittila municipality. COVID-19 protocols
(not including compensation paid to Nunavut-based employees) added approximately
$2.1 million (approximately
$4 per ounce) to the Company's
operating costs in the fourth quarter of 2020. These costs
relate mainly 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 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 to $1.5
million per month. To date, the Company has seen
limited impact on operational productivity as a result of
COVID-19.
In its effort to support the local communities in which it
operates, the Company maintains constant communication with local
authorities to understand the community-based priorities and to
identify where we are able to help. In Mexico, the local teams continue to provide
resources to local health centres and communities and to distribute
food hampers to vulnerable people. In Nunavut, the Kivalliq
region reported its first COVID-19 cases in November 2020 and the Government of Nunavut implemented mandatory, territory-wide
restrictions. The Company's local team provided rapid and
effective assistance, including snow removal, providing financial
support for equipment rental and manpower, and funding food hampers
and health and safety supplies for affected communities.
In the fourth 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 75% of the base salaries to these employees (a total of
$3.7 million pre-tax, $2.3 million net of tax, included in Other
Expenses). As the distribution of COVID-19 vaccines has begun
in local Nunavut communities, the
Company is preparing to reintegrate the Nunavut based workforce to its operations in
the course of 2021.
In the fourth quarter of 2020, 285 employees 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 285 employees who tested positive for COVID-19
in the fourth quarter of 2020, 257 employees recovered and the
Company continues to monitor closely the health status of the
employees that have not yet recovered. The following table
sets out additional information on COVID-19 cases identified in the
fourth quarter of 2020.
Region
|
Total Positive
Cases
|
Detected Offsite
|
Detected by the
Company's
protocols
|
Recovered Cases
|
Finland
|
2
|
2
|
—
|
—
|
Nunavut
|
12
|
5
|
7
|
3
|
Abitibi
|
8
|
5
|
3
|
4
|
Mexico
|
227
|
10
|
217
|
216
|
Exploration
|
36
|
2
|
34
|
34
|
Toronto
|
—
|
—
|
—
|
—
|
Sub-Total
|
285
|
24
|
261
|
257
|
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.
Fourth Quarter 2020 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference
call on Friday, February 12, 2021 at
9:00 AM (E.S.T.) to discuss
the Company's fourth 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 5848876. The conference call replay will expire
on Friday, March 13, 2021.
The webcast, along with presentation slides, will be
archived for 180 days on the Company's website.
Four-Year Guidance – Forecast Shows Continued
Production Growth
The Company is announcing its detailed production and cost
guidance for 2021, mine by mine production forecasts for 2021
through 2023 and consolidated production guidance for 2024.
Gold production in 2021 is forecast to be approximately 2,047,500
ounces, in line with the prior three-year gold production guidance
issued on February 13, 2020
("Previous Guidance"). Gold production in 2022 is forecast to
be between 2.075 million and 2.125 million ounces (mid-point of 2.1
million ounces), which is in line with the previous guidance. Gold
production in 2023 is forecast to be between 2.1 million and 2.15
million ounces (mid-point of 2.125 million ounces). Gold
production in 2024 is forecast to be approximately 2.15 million
ounces. At this time, gold production guidance for 2021 to
2024 excludes production from Hope Bay.
The Company believes that the risk of further business
interruption from COVID-19 remains low considering the rigorous
protocols that the Company has implemented in all operating regions
and the initiation of the global vaccination program.
However, unexpected interruptions could still occur given the
uncertainty surrounding the evolution of the virus and the measures
taken by governments and others to contain the spread and impact of
the virus.
In 2021, gold production is expected to ramp up over the
year. Overall, 2021 gold production is expected to be split
approximately 48% in the first half of the year and 52% in the
second half.
Total cash costs per ounce in 2021 are expected to be
between $700 and $750 using an assumed C$/US$ foreign
exchange rate of 1.30. The higher costs, when compared to
Previous Guidance of between $675 and
$725, are largely a result of added
costs at all sites for COVID-19 protocols, higher costs at La India
related to water conservation measures in the first half of 2021
and general industry cost pressures (approximately 3% to 5%).
Although the Company expects some variability in operating costs
from 2021 to 2024, total cash costs per ounce are expected to
average approximately $750 per ounce
over that period (assuming a C$/US$ foreign exchange rate
assumption of 1.30). The Company remains focused on reducing
costs through productivity improvements and innovation initiatives
at all of its operations.
AISC in 2021 are expected to be between $950 and $1,000 per
ounce. The higher costs, when compared to Previous Guidance
of between $900 and $950, are largely a result of higher total cash
costs and slightly higher capital expenditures. Although the
Company expects some variability in operating costs from 2021 to
2024, AISC per ounce are expected to average approximately
$990 per ounce over that period
(assuming a C$/US$ foreign exchange rate assumption of 1.30).
At this time, cost guidance for 2021 to 2024 excludes costs at Hope
Bay.
With the ramp-up of operations at Meliadine and Amaruq now
completed and the completion of the mill expansion at Kittila in
the fourth quarter of 2020, the Company now has five cornerstone
production assets (the LaRonde and Meadowbank Complexes and the
Canadian Malartic, Kittila and Meliadine mines) each with annual
production rates of approximately 250,000 to 400,000 ounces of
gold.
In 2021, with gold production expected to increase by
approximately 18% and total cash costs forecast to decline by
approximately 6%, the Company expects to continue generating strong
cash flow.
Four-Year Guidance Shows 24% Growth Over 2020
Production Level; Costs Guidance for 2021 Essentially In Line with
Prior Year's Guidance
Mine by mine production and cost guidance for 2021, and
mine by mine production forecasts for 2022 and 2023 are set out
below. Opportunities to further optimize and improve
production and unit cost forecasts from 2021 through 2023 are being
evaluated.
Estimated Payable Gold
Production*
|
|
|
|
2020**
Actual
|
|
2021***
Forecast
|
|
2022 Forecast
|
|
2023 Forecast
|
|
Range
|
|
Mid-Point
|
|
Range
|
|
Mid-Point
|
|
Northern Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
|
349,913
|
|
375,000
|
|
377,500
|
387,500
|
|
382,500
|
|
400,000
|
410,000
|
|
405,000
|
|
Canadian Malartic
(50%)
|
|
284,317
|
|
350,000
|
|
327,500
|
332,500
|
|
330,000
|
|
347,500
|
352,500
|
|
350,000
|
|
Goldex
mine
|
|
127,540
|
|
133,000
|
|
137,500
|
142,500
|
|
140,000
|
|
140,000
|
145,000
|
|
142,500
|
|
Kittila
mine
|
|
208,125
|
|
250,000
|
|
255,000
|
260,000
|
|
257,500
|
|
262,500
|
267,500
|
|
265,000
|
|
Meadowbank
Complex
|
|
209,413
|
|
370,000
|
|
395,000
|
405,000
|
|
400,000
|
|
410,000
|
420,000
|
|
415,000
|
|
Meliadine
mine
|
|
318,889
|
|
370,000
|
|
387,500
|
392,500
|
|
390,000
|
|
382,500
|
387,500
|
|
385,000
|
|
|
|
1,498,197
|
|
1,848,000
|
|
1,880,000
|
1,920,000
|
|
1,900,000
|
|
1,942,500
|
1,982,500
|
|
1,962,500
|
|
Southern Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
|
114,798
|
|
122,500
|
|
122,500
|
127,500
|
|
125,000
|
|
117,500
|
122,500
|
|
120,000
|
|
Creston Mascota
mine
|
|
38,599
|
|
—
|
|
—
|
—
|
|
—
|
|
—
|
—
|
|
—
|
|
La India
mine
|
|
84,974
|
|
77,000
|
|
72,500
|
77,500
|
|
75,000
|
|
40,000
|
45,000
|
|
42,500
|
|
|
|
238,371
|
|
199,500
|
|
195,000
|
205,000
|
|
200,000
|
|
157,500
|
167,500
|
|
162,500
|
|
Total Gold Production
|
|
1,736,568
|
|
2,047,500
|
|
2,075,000
|
2,125,000
|
|
2,100,000
|
|
2,100,000
|
2,150,000
|
|
2,125,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Estimated payable
gold production excludes payable gold production from Hope
Bay
|
** Includes
pre-commercial gold production of 18,930 ounces at Canadian
Malartic relating to Barnat pit, 10,995 ounces at Amaruq relating
to IVR pit and 6,491 ounces at Meliadine relating to Tiriganiaq
pit
|
*** Includes
estimated pre-commercial gold production of 29,000 ounces at
Meliadine relating to the Tiriganiaq pit
|
In 2024, the estimated production level is currently
forecast to be approximately 2.15 million ounces of gold.
Estimated payable gold production for 2021 to 2024 excludes payable
gold production from Hope Bay.
Total cash costs per ounce on a by-product basis of
gold produced ($ per ounce):
|
|
|
|
|
|
|
|
2020
|
|
2021*
|
|
|
Actual
|
|
Forecast
(mid-point)
|
Northern Business
|
|
|
|
|
LaRonde
Complex
|
|
$
|
517
|
|
$
|
587
|
Canadian Malartic
mine (50%)
|
|
723
|
|
616
|
Goldex
mine
|
|
634
|
|
730
|
Kittila
mine
|
|
805
|
|
760
|
Meadowbank
Complex
|
|
1,404
|
|
917
|
Meliadine
mine
|
|
774
|
|
736
|
|
|
$
|
781
|
|
$
|
722
|
Southern Business
|
|
|
|
|
Pinos Altos
mine
|
|
749
|
|
702
|
Creston Mascota
mine
|
|
605
|
|
—
|
La India
mine
|
|
788
|
|
1,002
|
|
|
$
|
739
|
|
$
|
818
|
Total
|
|
$
|
775
|
|
$
|
731
|
* Estimated total
cash costs per ounce excludes total cash costs per ounce at Hope
Bay
|
Currency and commodity price assumptions used for 2021
cost estimates and sensitivities are set out in the table
below:
Currency and commodity price assumptions used for
2021 costs estimates and sensitivities
|
|
|
|
|
|
|
|
2021 commodity and currency price
assumptions
|
|
Approximate impact on total cash costs per
ounce basis
|
|
|
|
|
|
|
|
Silver
($/oz)
|
|
$
|
22.00
|
|
$1 / oz change in
silver price
|
|
$
|
1.5
|
Copper
($/lb)
|
|
$
|
3.00
|
|
10% change in copper
price
|
|
$
|
1.0
|
Zinc
($/lb)
|
|
$
|
1.00
|
|
10% change in zinc
price
|
|
$
|
0.8
|
Diesel
(C$/ltr)
|
|
$
|
0.50
|
|
10% change in diesel
price
|
|
$
|
3.0
|
C$/US$
|
|
1.30
|
|
1.0% change in
C$/US$
|
|
$
|
5.0
|
US$/EUR
|
|
1.20
|
|
1.0% change in
US$/EUR
|
|
$
|
0.9
|
MXP/US$
|
|
20.00
|
|
10% change in
MXP/US$
|
|
$
|
1.0
|
Depreciation Guidance
Agnico Eagle expects 2021 depreciation and amortization
expense to be between $700 and
$750 million.
General & Administrative Cost
Guidance
Agnico Eagle expects 2021 general and administration
expenses to be between $80 and
$90 million, excluding share-based
compensation. In 2021, share based compensation expense is
expected to be between $35 and
$45 million (including non-cash stock
option expense of between $10 and
$15 million).
Other Cost Guidance
In 2021, Agnico Eagle expects additional other expenses of
approximately $10 million in
connection with sustainable development activities in the Abitibi
region of Quebec.
Please see the supplemental financial data section of the
Financial and Operating Database on the Company's website for
additional historical financial data.
Tax Guidance
For 2021, the Company expects its effective tax rates to
be:
Canada - 40% to
50%
Mexico - 35%
to 40%
Finland -
20%
The Company's overall tax rate is expected to be between
40% and 45% for the full year 2021.
Updated Three Year Operational Guidance
Plan
Since the prior Production Guidance for 2021 and 2022 was
issued on February 13, 2020, there
have been several operating developments resulting in changes to
the overall three-year production profile6 at several
mines. Descriptions of these operating developments are set
out below.
____________________
|
6 On
March 24, 2020, with the then reduced production activity at the
Company's Quebec and Nunavut operations, together with the
uncertainties with respect to future developments, including the
duration, severity and scope of the COVID-19 pandemic and the
measures taken to contain the pandemic, Agnico Eagle withdrew its
full year 2020 production and cash costs guidance released on
February 13, 2020. Agnico Eagle subsequently provided aggregate
2020 production and cash costs guidance on April 30,
2020.
|
NORTHERN BUSINESS
ABITIBI REGION, QUEBEC
LaRonde Complex Forecast
|
2020
|
2021
|
2022
|
2023
|
|
Previous Guidance
(oz)
|
withdrawn
|
350,000
|
360,000
|
n.a.
|
|
Current Guidance
(oz)
|
349,913
(actual)
|
375,000
|
382,500
|
405,000
|
|
|
|
|
|
|
|
LaRonde Complex Forecast 2021
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery
(%)
|
Silver (g/t)
|
Silver Mill
Recovery
(%)
|
|
2,962
|
4.15
|
94.9%
|
10.45
|
74.4%
|
|
Minesite Costs per
Tonne (C$)
|
Zinc (%)
|
Zinc Mill
Recovery
(%)
|
Copper (%)
|
Copper Mill
Recovery (%)
|
|
C$109.50
|
0.36%
|
68.7%
|
0.14%
|
77.8%
|
At the LaRonde Complex, the production guidance is higher
than the Previous Guidance for 2021 and 2022 as a result of
increased anticipated gold grades at the LaRonde mine and increased
mining rates at the LaRonde Zone 5 mine ("LZ5").
The strengthening of ground support and revised seismic
protocols in the West mine area implemented in the first quarter of
2020 have been effective and the planned throughput levels have
been confirmed. The higher expected gold grades at LaRonde
result from the revision of mining sequence and the adjustment of
the block model at year-end, which now partially factors-in the
higher than anticipated grades from the West Mine area. At
LZ5, the successful implementation of automated mining techniques
has resulted in a consistent improvement in productivity in 2020
and the forecast production rate for 2021 has been set at 3,000
tpd.
|
|
|
|
|
Canadian Malartic Forecast
|
2020*
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
350,000
|
330,000
|
n.a.
|
Current Guidance
(oz)
|
284,317
(actual)
|
350,000
|
330,000
|
350,000
|
|
|
|
|
|
Canadian Malartic Forecast 2021
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne (C$)
|
|
10,295
|
1.18
|
89.6%
|
C$28.20
|
* Includes 2020
pre-commercial gold production of 18,930 ounces at Canadian
Malartic relating to Barnat pit
|
At Canadian Malartic (in which Agnico Eagle has 50%
ownership), production guidance is in line with Previous Guidance
for 2021 and 2022. A reduced mining footprint and a higher
density of underground openings in the Canadian Malartic pit
continues to limit the access to higher-grade ore, which is
expected to be supplemented by lower-grade stockpiles. In
2021, approximately 65% of the production will be sourced from the
Canadian Malartic pit. However, an increasing portion of
the ore will be mined from the Barnat pit, which is expected to
result in additional flexibility quarter over quarter. The
mill throughput in 2021 is forecast to be approximately 57,000 tpd
(on a 100% basis).
|
|
|
|
|
Goldex Forecast
|
2020
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
135,000
|
130,000
|
n.a.
|
Current Guidance
(oz)
|
127,540
(actual)
|
133,000
|
140,000
|
142,500
|
|
|
|
|
|
Goldex Forecast 2021
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne (C$)
|
|
2,844
|
1.62
|
89.8%
|
C$44.40
|
At Goldex, the production guidance is in line with
Previous Guidance for 2021 and higher for 2022. The
expected increase in production in 2022 is largely due to the
acceleration of mining rates from the Deep 1 area as well as the
South Zone and the anticipated increase in the Rail-Veyor capacity
to 7,500 tpd.
NUNAVUT
REGION
|
|
|
|
|
Meadowbank Complex Forecast
|
2020*
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
372,500
|
415,000
|
n.a.
|
Current Guidance
(oz)
|
209,413
(actual)
|
370,000
|
400,000
|
415,000
|
|
|
|
|
|
Meadowbank Complex Forecast
2021
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne (C$)
|
|
3,394
|
3.63
|
93.2%
|
C$130.30
|
* Includes 2020
pre-commercial gold production of 10,995 ounces at Amaruq relating
to IVR pit
|
At the Meadowbank Complex, the production guidance is in
line with Previous Guidance for 2021 and lower for 2022. The
expected decrease in production in 2022 is primarily due to the
delay in the Amaruq underground project as a result of the COVID-19
related reduction in activities in the second quarter of
2020. The Company currently forecasts approximately 45,000
ounces of gold being produced from underground operations in 2022,
compared to 50,000 to 60,000 ounces forecast in the Previous
Guidance. Further details on the Amaruq underground project
are provided below.
Every year, the caribou migration is factored into the
Company's production plan. This migration can impact
the ability to move materials on the road between Amaruq and
Meadowbank and between Meadowbank and Baker Lake. Wildlife
management is an important priority and the Company is working with
Nunavut stakeholders to find the
best solutions to safeguard wildlife and minimize production
disruptions.
|
|
|
|
|
Meliadine Forecast
|
2020*
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
385,000
|
397,500
|
n.a.
|
Current Guidance
(oz)
|
318,889
(actual)
|
370,000
|
390,000
|
385,000
|
|
|
|
|
|
Meliadine Forecast 2021**
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne (C$)
|
|
1,498
|
7.37
|
96.1%
|
C$218.20
|
* Includes 2020
pre-commercial gold production of 6,492 ounces at Meliadine
relating to Tiriganiaq pit
|
**2021 Meliadine
guidance in the table above excludes estimated pre-commercial
production from the Tiriganiaq pit of approximately 215,000 tonnes.
Estimated pre-commercial production is expected to be approximately
26,800 ounces of gold
|
At Meliadine, the production guidance is lower than the
Previous Guidance in 2021 and 2022 primarily due to a revision of
the mining sequence, with increased ore being sourced from the
lower grade Tiriganiaq open pits. Minesite costs per tonne at
Meliadine are expected to decline as production levels
increase. Additional details on the Phase 2 expansion are
provided in the Meliadine operating section below.
FINLAND
|
|
|
|
|
Kittila Forecast
|
2020
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
235,000
|
262,500
|
n.a.
|
Current Guidance
(oz)
|
208,125
(actual)
|
250,000
|
257,500
|
265,000
|
|
|
|
|
|
Kittila Forecast 2021
|
Ore Milled
('000 tonnes)
|
Gold (g/t)
|
Gold Mill
Recovery (%)
|
Minesite Costs
per Tonne (EUR)
|
|
2,045
|
4.42
|
86.0%
|
€ 77.40
|
At Kittila, the production guidance is higher than the
Previous Guidance in 2021 and lower in 2022 primarily due to a
revision to the mining sequence related to the underground
expansion project. Minesite costs per tonne are expected to
decline as production levels increase to 2 million tonnes per year
and with the commissioning of the shaft expected in the first half
of 2022.
SOUTHERN BUSINESS
|
|
|
|
|
Pinos Altos Forecast
|
2020
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
130,000
|
137,500
|
n.a.
|
Current Guidance
(oz)
|
114,798
(actual)
|
122,500
|
125,000
|
120,000
|
|
|
|
|
|
Pinos Altos Forecast 2021
|
Total Ore
('000 tonnes)
|
Gold (g/t)
|
Gold Recovery
(%)
|
|
|
1,905
|
2.14
|
93.5%
|
|
|
Minesite Costs
per Tonne
|
Silver (g/t)
|
Silver Mill
Recovery (%)
|
|
|
$66.80
|
56.96
|
53.8%
|
|
At Pinos Altos, the
production guidance is lower than the Previous Guidance in 2021 and
2022 largely due to a reduction in throughput levels and grades at
Pinos Altos. This reduction
is related to the adjustment of the Cerro Colorado mining sequence to manage
challenging ground conditions, partially offset by increased
production from other zones. The Company will continue the
development of the Cubiro satellite deposit and prepare the
operation for a possible early production ramp-up in 2022. In
addition, the Company is evaluating the potential to develop the
Reyna de Plata deposit satellite zone, to extend the mine life at
Pinos Altos.
|
|
|
|
|
La India Forecast
|
2020
|
2021
|
2022
|
2023
|
Previous Guidance
(oz)
|
withdrawn
|
90,000
|
67,500
|
n.a.
|
Current Guidance
(oz)
|
84,974
(actual)
|
77,000
|
75,000
|
42,500
|
|
|
|
|
|
La India Forecast 2021
|
Total Ore
('000 tonnes)
|
Gold (g/t)
|
Gold Recovery
(%)
|
|
|
6,613
|
0.54
|
67.1%
|
|
|
Minesite Costs
per Tonne
|
Silver (g/t)
|
Silver
Recovery (%)
|
|
|
$11.88
|
2.08
|
14.6%
|
|
At La India, the production guidance is lower than the
Previous Guidance in 2021 and higher in 2022. Reduced water
levels, resulting from lower rainfall in 2020 than in previous
years, will result in lower production in the second
quarter of 2021. Leaching operations are expected to
normalize in the second half of 2021. The higher
production guidance in 2022 is due to increased percolation rates
related to the phase III pad expansion. The Company continues
to evaluate the potential to develop other satellite zones such as
Chipriona to extend the life of the mine.
Total Capital Expenditure Forecast Increases Slightly
Over 2020; Capital Expenditures Expected to Remain Stable through
2024
Estimated capital expenditures for 2021 total
approximately $803 million, which
includes approximately $351 million
of sustaining capital at the Company's operating mines,
$407 million on growth projects and
$45 million on capitalized
exploration, as set out in the table below. Additionally,
approximately $129 million is
expected to be spent on expensed exploration and project
evaluations and approximately $33
million is expected to be spent on corporate development,
and technical services.
Estimated 2021 Capital
Expenditures*
|
(In thousands of US dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized Exploration
|
|
|
|
|
Sustaining
Capital
|
|
Development
Capital
|
|
Sustaining
|
Non-
sustaining
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
|
$
|
95,300
|
|
|
$
|
51,700
|
|
|
$
|
2,000
|
|
$
|
—
|
|
|
$
|
149,000
|
|
Canadian Malartic
mine (50%)
|
|
71,500
|
|
|
61,900
|
|
|
—
|
|
11,900
|
|
|
145,300
|
|
Goldex
mine
|
|
18,100
|
|
|
19,200
|
|
|
3,600
|
|
2,100
|
|
|
43,000
|
|
Kittila
mine
|
|
40,300
|
|
|
61,700
|
|
|
7,300
|
|
4,000
|
|
|
113,300
|
|
Meadowbank
Complex
|
|
40,400
|
|
|
5,750
|
|
|
—
|
|
4,900
|
|
|
51,050
|
|
Amaruq Underground
project
|
|
—
|
|
|
98,950
|
|
|
—
|
|
—
|
|
|
98,950
|
|
Meliadine
mine**
|
|
46,100
|
|
|
64,800
|
|
|
3,100
|
|
5,200
|
|
|
119,200
|
|
Pinos Altos
mine
|
|
28,100
|
|
|
26,600
|
|
|
500
|
|
—
|
|
|
55,200
|
|
Creston Mascota
mine
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
La India
mine
|
|
7,000
|
|
|
16,400
|
|
|
—
|
|
—
|
|
|
23,400
|
|
Other
|
|
4,600
|
|
|
—
|
|
|
—
|
|
—
|
|
|
4,600
|
|
Total Capital Expenditures
|
|
$
|
351,400
|
|
|
$
|
407,000
|
|
|
$
|
16,500
|
|
$
|
28,100
|
|
|
$
|
803,000
|
|
* Estimated 2021
capital expenditures exclude capital expenditures at Hope
Bay
|
** 2021 forecast
capital expenditures relating to Meliadine incorporate anticipated
pre-production gold ounces of 29,000
|
Using the Company's 2021 budget assumptions, annual
sustaining capital expenditures for 2022 and beyond are expected to
remain stable at approximately $325
to $375 million. Based on the
extensive list of high-quality development growth opportunities,
which are discussed below, and depending on prevailing gold
prices and the timing of project approvals, the Company expects
that total growth capital in future years could be approximately
$375 to $425
million. Overall, annual capital expenditures are
expected to be approximately $750 to
$800 million through 2024.
2021 Exploration Program and Budget – Key Programs
Include Kittila, Canadian Malartic, LaRonde, Kirkland Lake, Meliadine, Hope Bay and
Santa Gertrudis
As a result of recent exploration successes at
several projects, the Company has budgeted for a substantial
increase in exploration expenditures in 2021, for a total of
$163 million, and is planning the
most ambitious exploration program in the Company's history to
investigate the full potential of existing operations and key
projects in the Company's pipeline.
A large component of the 2021 exploration program
will include programs at the Kittila mine in Finland, the Canadian Malartic mine and
LaRonde Complex in the Abitibi region of northwest Quebec, the Kirkland
Lake project in northeastern Ontario, the Meliadine and Hope Bay mines in
Nunavut, and the Pinos Altos and La India mines and the
Santa Gertrudis project in
Mexico. The objective of these exploration programs is
to build on recent exploration success in order to identify
additional mineral resources and convert mineral resources into
mineral reserves as part of the Company's general strategy to
develop the full potential of existing operations and the project
pipeline.
At the Kittila mine, the Company expects to spend
$14.3 million for 74,500 metres of
drilling focused on the Main Zone in the Roura and Rimpi areas as
well as the Sisar Zone. The drilling includes 65,000 metres
of capitalized conversion drilling at the mine as described above
and 9,500 metres of expensed exploration drilling on targets beyond
the current mineral resource area, especially at depth.
At the Goldex mine, the Company expects to spend
$6.5 million for 67,500 metres,
including 61,500 metres of conversion and 6,000 metres of
exploration drilling, focused on the M Zone, Deep 1, Deep 2 and
South zones.
At the Canadian Malartic mine, the Company expects to
spend $11.9 million (50% basis) for
141,400 metres (100% basis) of exploration and conversion drilling
focused on aggressive infilling of the East Gouldie Zone to improve
confidence in the mineral resource and refine the geological
model. With ramp development underway as part of the Odyssey
project, the Company will be able to initiate underground
conversion drilling from the ramp in 2021. The Company is
planning to spend another $3.2
million (50% basis) on 32,000 metres (100% basis) on
exploration drilling to test other regional targets at Canadian
Malartic, including the Rand Malartic and East Amphi
properties.
At the LaRonde Complex, the Company expects to spend
$14.1 million to develop new
exploration drifts from the LaRonde 3 infrastructure towards the
west below the LZ5 mine workings and for 39,800 metres of drilling
into multiples targets including Zone 5, Zone 6, Zone 20N and the
recently discovered Zone 20N Zn South with the aim of adding new
mineral reserves and mineral resources to extend the mine life of
the LaRonde Complex into the 2030's.
At the Kirkland Lake
project in Ontario, the Company
expects to spend $14.0 million for
52,200 metres, including $9.1 million
for 36,500 metres of exploration and conversion drilling at the
Upper Beaver deposit in preparation for an internal evaluation
expected to be completed at the end of 2021. Elsewhere at the
Kirkland Lake project, another
$4.9 million in expenditures is
planned for 15,700 metres of drilling on several targets including
the Upper Canada
deposit.
At the Meadowbank Complex, the Company expects to spend
$7.0 million for 34,900 metres of
drilling, including 23,900 metres of conversion and 11,000 metres
of exploration drilling, focused at testing open-pit extensions and
further underground potential of the deposits at the Amaruq
satellite operation.
At the Meliadine mine, the Company expects to spend
$8.3 million for 44,000 metres of
capitalized drilling with a focus on conversion drilling at the
Tiriganiaq, Normeg and Wesmeg deposits, as well as exploration
drilling of the Tiriganiaq, Wesmeg, Pump and F-Zone deposits, which
are all open at depth.
Elsewhere in the Kivalliq region of Nunavut, the Company expects to spend
$9.0 million for 20,600 metres of
drilling on regional exploration, including 10,000 metres of
drilling in the Meadowbank area and 7,000 metres of drilling in the
Meliadine area with a primary focus on investigating for new
open-pit potential near existing infrastructure. Another
3,600 metres are expected to be drilled on other exploration
targets in the region.
At the Hope Bay mine, the Company expects to spend
$16.2 million for 69,600 metres of
drilling, including $5.5 million for
29,800 metres of delineation drilling to support production at the
Doris mine and $10.7 million for
39,800 metres of drilling on exploration targets around the Doris,
Madrid and Boston deposits and other targets along the
belt. The Company is currently evaluating exploration
priorities and metres allocated on each program and may adjust the
allocation during the course of 2021.
At the Santa Gertrudis
project in Sonora, Mexico, the
Company expects to spend $11 million
for 30,000 metres of drilling that will be focused on expanding the
mineral resource, testing the extensions of high-grade structures
such as the Amelia deposit, exploring new targets and completing
metallurgical test work. An updated mineral reserve and
mineral resource estimate and an updated preliminary economic
assessment are expected to be completed in 2021.
At the Pinos Altos mine,
the Company expects to spend $3.9
million for 20,000 metres of drilling, including 10,000
metres to infill and expand the mineral resource at Cubiro and as
well as exploration drilling to test the depth potential of the
Cerro Colorado, Santo Nino and Reyna East zones and other
targets on the property.
At the La India mine, the Company expects to spend
$4.0 million for 20,000 metres of
drilling to investigate for shallow, near surface oxide targets and
to grow and infill the Chipriona polymetallic sulphide
deposit.
2021 Global Exploration Program and Corporate Development
Budget
|
|
Expensed
Exploration
|
|
Capitalized
Exploration
|
|
|
$
millions
|
|
thousands
metres
|
|
$
millions
|
|
thousands
metres
|
Nunavut
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
|
$
|
2.1
|
|
11.0
|
|
$
|
4.9
|
|
23.9
|
Meliadine
|
|
—
|
|
—
|
|
8.3
|
|
44.0
|
Hope Bay
|
|
10.7
|
|
39.8
|
|
—
|
|
—
|
Other
|
|
9.0
|
|
20.6
|
|
—
|
|
—
|
Nunavut
subtotal
|
|
21.8
|
|
71.4
|
|
13.2
|
|
67.9
|
Quebec
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
|
12.1
|
|
16.5
|
|
2.0
|
|
23.3
|
Goldex
|
|
0.8
|
|
6.0
|
|
5.7
|
|
61.5
|
Other
|
|
7.7
|
|
44.2
|
|
—
|
|
—
|
Quebec
subtotal
|
|
20.6
|
|
66.7
|
|
7.7
|
|
84.8
|
Canadian Malartic Corporation
projects
|
|
|
|
|
|
|
|
|
Canadian Malartic
mine*
|
|
—
|
|
—
|
|
11.9
|
|
141.4
|
Canadian Malartic
projects*
|
|
—
|
|
—
|
|
—
|
|
—
|
Regional
exploration and studies**
|
|
3.1
|
|
32.0
|
|
—
|
|
—
|
Canadian Malartic
Corporation subtotal
|
|
3.1
|
|
32.0
|
|
11.9
|
|
141.4
|
Ontario
|
|
|
|
|
|
|
|
|
Kirkland Lake
projects
|
|
14.0
|
|
52.2
|
|
—
|
|
—
|
Canada
Other
|
|
1.5
|
|
—
|
|
—
|
|
—
|
Canada
Subtotal
|
|
61.0
|
|
222.3
|
|
32.7
|
|
294.1
|
Europe
|
|
|
|
|
|
|
|
|
Kittila
|
|
3.0
|
|
9.5
|
|
11.3
|
|
65.0
|
Barsele
|
|
2.4
|
|
3.0
|
|
—
|
|
—
|
Other
|
|
5.0
|
|
15.0
|
|
—
|
|
—
|
Europe
subtotal
|
|
10.4
|
|
27.5
|
|
11.3
|
|
65.0
|
Mexico
|
|
|
|
|
|
|
|
|
Pinos
Altos
|
|
3.4
|
|
17.0
|
|
0.5
|
|
3.0
|
La India
|
|
4.0
|
|
20.0
|
|
—
|
|
—
|
Santa
Gertrudis
|
|
11.0
|
|
30.0
|
|
—
|
|
—
|
Other
|
|
12.2
|
|
21.0
|
|
—
|
|
—
|
Mexico
subtotal
|
|
30.6
|
|
88.0
|
|
0.5
|
|
3.0
|
USA
|
|
9.4
|
|
10.0
|
|
—
|
|
—
|
Colombia (Anza JV and
Other)
|
|
3.8
|
|
16.1
|
|
—
|
|
—
|
G&A, land fees
and Project Evaluation
|
|
14.5
|
|
—
|
|
—
|
|
—
|
Total Exploration
|
|
$
|
129.7
|
|
363.9
|
|
$
|
44.5
|
|
362.1
|
Total Corporate
Development and Technical Services
|
|
$
|
32.9
|
|
|
|
|
|
|
Total Exploration and Corporate
Development
|
|
$
|
162.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*For the Canadian
Malartic mine and projects, in which Agnico Eagle holds a 50%
indirect interest, the expenses in this table represent 50% of the
total expenses, but the drill lengths represent 100% of
drilling.
|
Pipeline Projects Continue to Advance – Opportunities
to Enhance Short-Term and Longer-Term Production
The Company has an extensive pipeline of development and
advanced exploration projects, several of which are located near
its existing mining operations. These projects have the potential
to add further value and enhance the current gold production
profile in the short-term (2021-2023) and longer-term (2024 and
beyond). Updates on the various projects are set out
below.
Near-Term Pipeline Opportunities Expected to Enhance
Production in 2021 to 2023; Amaruq Underground and Odyssey approved
for Development; Hope Bay acquisition completed, strategic review
underway
Expansion projects are currently underway at Kittila and
Meliadine to enhance and increase current production. Updates
on these expansions are presented below in the operational section
of this news release.
In addition, underground mining and development programs
have now been approved at the Amaruq underground project and the
50%-owned Odyssey project at Canadian Malartic. Gold
production from the Amaruq underground project is expected to begin
in early 2022, while initial production from the Odyssey project is
expected to begin in 2023. Additional details on these two
projects are set out below.
On February 2, 2021, the
Company completed the acquisition of TMAC Resources Inc. ("TMAC"),
which owned and operated the Hope Bay mine in Nunavut. At
this time, the Doris deposit remains in production, and is forecast
to be approximately cashflow neutral in 2021. Hope Bay is not
currently included in the Company's 2021 to 2024 production, cost
and capital guidance. In 2021, Agnico Eagle plans to ramp up
a property wide exploration program and evaluate optimal mining and
milling strategies for future production. The Company
believes that Hope Bay has the potential to be a 250,000 to 300,000
ounce per year operation. Additional details on Hope Bay are
set out below.
The Company is also evaluating several other potential
near-term opportunities (none of which has yet been approved for
construction) at existing operations to build further value and
enhance the gold production profile starting in 2022. These
opportunities are set out in the table below.
Minesite/
Region
|
Opportunity
|
LaRonde
Complex
|
Exploration strategy
is being reviewed to evaluate extensions of previously mined zones
and areas that have seen limited exploration activity (portions of
the Bousquet property). At LZ5, drilling will be carried out to
expand mineral reserves and mineral resources at depth and test
other nearby satellite zones (Ellison property)
|
Goldex
|
Evaluating the
potential to increase mining rates in the Deep 1 and Deep 2 zones
as well as the South Zone. Mineralization at Deep 2 remains
open laterally and at depth, while the South Zone is open in all
directions. Exploration in 2021 is expected to focus on
expanding and upgrading the mineral reserves and mineral resources
in each of these zones
|
Pinos
Altos
|
Ongoing exploration
and evaluation of potential development scenarios for the Cubiro
and Pinos Altos Deep areas. Cubiro is being readied for
production start-up in 2022
|
La India and
Chipriona
|
Continued evaluation
of the La India and Chipriona sulfide mineralization.
Evaluation work and scenario analysis on Chipriona and other
suphide opportunities are ongoing and preliminary results are
expected later this year
|
Amaruq Underground Approved for Mine Development; First
Production Expected in 2022
The delineation of higher-grade mineralization at depth
below the proposed open pits at Amaruq led to the decision to
construct an exploration ramp into the Whale Tail deposit in
2017. Ramp development commenced in 2018 using a phased
approach in order to manage capital costs. In 2020, work on
the underground project was reduced due to the restrictions on
mining activities in the second quarter of 2020 in response to the
COVID-19 pandemic and as the Company focused its priorities on
completing the ramp up of open pit mining activities at
Amaruq. With mining operations now on a strong footing at the
Meadowbank Complex, the Amaruq underground project has now been
approved for development and first gold production is expected in
early 2022. The objective is to mine higher-grade
underground portions of the deposit in conjunction with the open
pits.
The existing exploration portal and ramp will be used for
development and production. The exploration ramp is currently
at a depth of approximately 340 metres below surface and in 2021
approximately 2,421 metres of underground development are
planned. A traditional truck and scoop tram approach has been
selected for underground mucking and hauling. Once at
surface, ore will be moved by long haul trucks for treatment at the
nearby Meadowbank processing plant.
Long-hole open stoping is the most suitable method for
this underground deposit. The stopes are to be backfilled
using cemented rockfill ("CRF"). Testing of CRF in cold
conditions was initiated in 2019 and confirmed the applicability of
the assumptions used for the project.
The mining rate is expected to start at 1,500 tpd and then
ramp up to 2,300 tpd. Over the five-year mine life, the
average mining rate is expected to be approximately 2,000
tpd. The mine plan includes a pre-production period with
operational ramp up from the second quarter of 2021 to the third
quarter of 2022. Commercial production is expected in the
fourth quarter of 2022 and production is expected to continue until
the end of 2026. Ultimately, 3.071 million tonnes of ore with
an average gold grade of 5.47 g/t is expected to be mined
underground within the permafrost of the Whale Tail
deposit.
Given the permafrost conditions, it is expected that the
mine will be dry and will not be heated. Brine is required
while mining in permafrost, and it will be recirculated during
mining operations. All excess underground water will be
pumped to the surface and stored in two surface ponds (GSP1 and
GSP2). The water salinity will vary from approximately 5.8 to
12% and as such, no water treatment is expected to be
required. The capacity of the two ponds is believed to be
sufficient to store all underground water during operations.
At the end of the mine life, all of the water will be pumped back
into the underground mine void.
Ore from the underground mine will be prioritized for
transportation to the Meadowbank Processing Plant as it is expected
to have a higher gold content. Underground tailings will be
mixed with open pit tailings prior to deposit in-pit at the
Meadowbank site.
In 2018, the Company investigated methods to maximize
milling capacity and accommodate the additional tonnage from the
underground deposit. The addition of high pressure grinding
rolls ("HPGR") as a tertiary crusher was the preferred
method. In this scenario, it was expected a 12,000 tpd
throughput could be achieved, with the potential to lower mill
operating costs. Additional tests were carried out in 2020
that confirmed HPGR technology was applicable to ore from the Whale
Tail deposit.
From 2022 to 2026, average annual production is expected
to be approximately 100,000 ounces of gold at average total cash
costs per ounce of $749 and AISC of
$826 per ounce. Initial capital
costs are estimated at $140 million,
while sustaining capital costs are expected to be $38 million. Using a gold price of
$1,550 per ounce, and a C$/US$
foreign exchange rate assumption of 1.30, the Amaruq underground
project has an after-tax internal rate of return ("IRR") of 28% and
an after-tax NPV (at a 5% discount rate) of $105 million.
Operating parameters based on an internal technical study
are set out in the table below.
Amaruq Underground Project
Summary
|
(All numbers are
approximate)
|
|
|
Estimated Total Gold Production
|
500,000
|
gold
ounces
|
Average metallurgical
recovery
|
95.2
|
%
|
|
Average Annual gold production
|
100,000 oz
|
average from 2022 to
2026
|
2022
|
41,250 oz
|
(284.5 k. tonnes,
4.88g/t gold)
|
2023
|
102,500 oz
|
(647.5 k. tonnes,
5.33g/t gold)
|
2024 to 2026 (average
per year)
|
118,750 oz
|
(710.9 k. tonnes,
5.62g/t gold)
|
IIBA Royalty
|
1.4 %
|
NSR
|
Minesite costs per tonne
|
$154
|
C$/t (includes NTI
royalty)
|
Average total cash costs on a by-product
basis
|
$750
|
/oz
|
Average AISC
|
$825
|
/oz
|
Mine life
|
6
|
years
|
Commercial production
|
Q4 2022
|
|
Capital Expenditures
|
|
|
2021 - Development
Capital Expenditures
|
$100
|
million
|
2022 - Development
Capital Expenditures
|
$40
|
million
|
2022 - Sustaining
Capital Expenditures
|
$3
|
million
|
2023 - Sustaining
Capital Expenditures
|
$17
|
million
|
2024 - Sustaining
Capital Expenditures
|
$15
|
million
|
2025 - Sustaining
Capital Expenditures
|
$3
|
million
|
Total
|
$178
|
million
|
Reclamation Costs
|
$2
|
million for the
underground project only
|
Economic Assumptions:
|
|
|
Gold Price
|
$1,550
|
|
USD:CAD
|
1.30
|
|
Effective tax
rate
|
27
|
%
|
|
The underground mineralization is open in several
directions. Any potential increase in open pit mine life
could support increased underground production. Exploration
activities at the Meadowbank Complex in 2021 are focused on the
delineating new near surface ore sources.
Odyssey Project – Drilling Significantly Expands
Inferred Mineral Resources at East Gouldie Supporting Approval of
Underground Mine Development
Expanded Drill Program at East Gouldie Zone Increases
Inferred Mineral Resource by 134% to 6.4 Million Ounces of Gold
(100% Basis)
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.
Operations at Canadian Malartic are undertaken through the
Canadian Malartic General Partnership (the "Partnership"), in which
the Company has a 50% interest. Primary exploration target at
Canadian Malartic during 2020 was 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.
Drill results from East Gouldie were last reported in the
Company's news release dated October 28,
2020.
Exploration drilling at East Gouldie in 2020 totalled
97,250 metres (100% basis), including 25,600 metres in the
fourth quarter with multiple mother holes and wedge cuts that
resulted in 25 new pierce points in the zone, plus several more in
the Odyssey related zones.
To date at East Gouldie, the Partnership has drilled
179,800 metres for an aggregate of 133 pierce points.
The intensive drilling program in 2020 has allowed the
Partnership to increase the inferred mineral resource of the East
Gouldie Zone by 134% to 6.4 million ounces of gold (with Agnico
Eagle's 50% interest representing 3.2 million ounces of gold from
31.5 million tonnes grading 3.17 g/t gold) compared to the initial
inferred mineral resource declared at year-end 2019.
There are currently 11 drill rigs targeting the East
Gouldie Zone in a program designed to continue expanding the
mineral resource envelope with a 150-metre drill spacing pattern
and tightening the drill spacing in the zone's high-grade core to
75 metres.
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.
Selected recent drill intercepts from the East Gouldie
Zone 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)**
|
MEX19-161W
|
EG North
|
1,649.6
|
1,654.9
|
1,378
|
4.9
|
6.0
|
5.2
|
and
|
EG South
|
1,685.0
|
1,708.3
|
1,405
|
21.4
|
3.6
|
3.6
|
MEX20-164WB
|
EG North
|
1,859.0
|
1,864.0
|
1,574
|
4.0
|
4.9
|
4.9
|
MEX20-169AWC
|
EG South
|
1,898.8
|
1,912.3
|
1,691
|
10.9
|
7.7
|
7.2
|
MEX20-169AWD
|
EG South
|
1,852.0
|
1,867.0
|
1,576
|
13.9
|
7.6
|
7.0
|
MEX20-178WB
|
EG North
|
1,240.0
|
1,249.0
|
1,122
|
7.6
|
8.9
|
8.0
|
MEX20-180
|
N of EG N
|
1,428.0
|
1,435.0
|
1,367
|
5.7
|
4.1
|
4.1
|
MEX20-183
|
EG North
|
1,328.5
|
1,332.2
|
1,168
|
2.9
|
11.1
|
8.1
|
and
|
Btw EG
N&S
|
1,402.0
|
1,406.1
|
1,229
|
3.2
|
8.1
|
7.7
|
MEX20-185
|
EG South
|
1,825.0
|
1,831.5
|
1,584
|
5.9
|
9.3
|
7.0
|
MEX20-187
|
EG South
|
1,662.0
|
1,676.0
|
1,409
|
12.7
|
3.9
|
3.9
|
MEX20-189A
|
Btw EG
|
1,670.0
|
1,685.2
|
1,444
|
13.9
|
3.2
|
3.2
|
and
|
EG South
|
1,695.0
|
1,714.4
|
1,465
|
17.8
|
4.5
|
4.5
|
MEX20-190
|
EG North
|
1,468.1
|
1,475.5
|
1,024
|
7.1
|
6.6
|
6.6
|
MEX20-191
|
EG North
|
1,618.5
|
1,635.0
|
1,489
|
14.9
|
4.3
|
4.0
|
and
|
EG South
|
1,647.7
|
1,659.6
|
1,510
|
10.7
|
3.5
|
3.5
|
*Sub-zones recognized
at the 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]
Drilling during the fourth quarter of 2020 continued to
demonstrate the robustness and continuity of the East Gouldie
Zone's high-grade core. Hole MEX20-169AWD, drilled in the
lower middle portion of the core, intersected 7.0 g/t gold over
13.9 metres at a depth of 1,576 metres.
Towards the eastern edge of the East Gouldie Zone, hole
MEX20-189A intersected 3.2 g/t gold over 13.9 metres at 1,444
metres depth and 4.5 g/t over 17.8 metres at 1,465 metres
depth. Approximately 40 metres east of hole MEX20-189A at the
eastern edge of the mineral resource envelope, hole MEX20-191
intersected 4.0 g/t gold over 14.9 metres at 1,489 metres depth and
3.5 g/t gold over 10.7 metres at 1,510 metres depth. The
above intersections demonstrate that the East Gouldie Zone is open
down-plunge towards the east, warranting further investigation
during the 2021 drilling campaign.
In 2021, the Company expects to spend $11.9 million (50% basis) for 141,400 metres
(100% basis) of exploration and conversion drilling focused on
continued infilling of the East Gouldie Zone to improve confidence
in the mineral resource and refine the geological model. The
zone remains open laterally and down-plunge.
The Odyssey project also contains other mineralized zones
with significant mineral resources including:
- East Malartic, with
736,000 ounces of indicated mineral resources (11.3 million tonnes
grading 2.03 g/t gold) and 5.3 million ounces of inferred mineral
resources (86.9 million tonnes grading 1.91 g/t gold)
- Odyssey North and South, with 122,000 ounces of indicated
mineral resources (2.0 million tonnes grading 1.90 g/t gold) and
1.8 million ounces of inferred mineral resources (27.7 million
tonnes grading 2.05 g/t gold)
The above mineral resources are as of December 31, 2020 and are reported on a 100%
basis. For a detailed discussion of mineral reserves and
mineral resources see "Detailed Mineral Reserve and Mineral
Resource Data (as at December 31,
2020)".
In 2021, the Company also expects to spend $3.2 million (50% basis) on 32,000 metres (100%
basis) of exploration drilling to test other regional targets at
Canadian Malartic, including the Rand Malartic and East Amphi
properties.
Odyssey Project Approved for Underground Mine
Development
Following the completion of an internal technical study in
late 2020, the Partnership has approved the construction of a new
underground mining complex at the Odyssey project. The
results of this study are being incorporated into section 24 of a
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101") technical report for the Canadian
Malartic operation (the "CM Report"). The CM Report is
expected to be filed on SEDAR in March
2021.
The Odyssey project hosts three main
underground-mineralized zones, which are East Gouldie, East Malartic, and Odyssey, the latter of
which is sub-divided into the Odyssey North, Odyssey South and
Odyssey Internal zones. For the purpose of the technical study,
mineable stope shapes were generated using a gold price of
$1,250 per ounce, consistent with the
price used for estimating Canadian Malartic open pit mineral
reserves. Mineral resources at East
Malartic below 600 metres from surface are not currently
included in the technical study. A breakdown of the mineral
resources used in the technical study, after dilution and mining
recovery, is presented in the table below. For a detailed
discussion of mineral reserves and mineral resources see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31, 2020)".
Zones
|
Indicated Mineral Resources
|
Inferred Mineral Resources
|
Million
tonnes
|
Au g/t
|
Million
Ounces
|
Million
tonnes
|
Au g/t
|
Million
Ounces
|
East Gouldie
|
—
|
—
|
—
|
51.95
|
3.14
|
5.24
|
East Malartic
|
4.59
|
2.13
|
0.31
|
7.84
|
2.15
|
0.56
|
Odyssey
|
1.58
|
1.89
|
0.10
|
16.11
|
2.12
|
1.08
|
Total
|
6.18
|
2.07
|
0.41
|
75.90
|
2.82
|
6.88
|
The shallow mineralized zones located above 600 metres
below surface will be mined using a ramp from surface. The
deeper mineralized zones below 600 metres from surface will be
mined with a production shaft.
In December 2020, ramp
development was started on the Odyssey project in order to
facilitate underground conversion drilling in 2021 and provide
access to the Odyssey and East
Malartic deposits. At year-end 2020, the ramp had
progressed 102 metres, and an additional 1,500 metres of ramp
development is planned in 2021.
The conceptual mine design in the CM
Report includes a 1,800 metres deep production-services shaft
with an expected capacity of approximately 20,000 tpd. The
project will also benefit from the existing infrastructure at the
Canadian Malartic site, including the tailing storage facilities,
the processing plant and the maintenance facilities.
The preliminary mining concept is based on a sublevel open
stoping mining method with paste backfill. Longitudinal
retreat and transverse primary-secondary mining methods will also
be used dependent on mineralization geometry and stope design
criteria.
The project is expected to use a combination of
conventional and automated equipment, similar to what is currently
used at the LaRonde Complex. On the two main levels with
loading pockets, trucks and hammers are expected to be remotely
operated 24 hours a day 7 days a week from a surface control room,
increasing equipment utilization. The Partnership will
continue to evaluate opportunities to optimize the
project.
Production via the ramp is expected to begin at Odyssey
South in late 2023, increasing up to 3,500 tpd in 2024.
Collaring of the shaft and installation of the headframe is
expected to commence in the second quarter of 2021, with shaft
sinking activities expected to begin in late 2022. The shaft
will have an estimated depth of 1,800 metres and the first loading
station is expected to be commissioned in 2027 with modest
production from East Gouldie. The East Malartic shallow area and Odyssey North
are scheduled to enter into production in 2029 and 2030
respectively.
The forecast parameters surrounding the Company's proposed
operations at the Odyssey project were based on the CM Report,
which is preliminary in nature and includes inferred mineral
resources that are too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves and there is no certainty that the
forecast production amounts will be realized. The basis for the CM
Report and the qualifications and assumptions made by the qualified
person who undertook the CM Report are set out in this news
release. The results of the CM Report had no impact on the results
of any pre-feasibility or feasibility study in respect of the
Odyssey project.
Many of the design criteria and parameters are similar to
Agnico Eagle's existing operating mines in the region. The
project is expected to mine 19,000 tpd from the underground from
four different mining zones:
- East Gouldie – 12,500 tpd
-
- Stope production starts in 2027
- 3-year ramp up (2027-2029)
- Full stope production in 2030 to 2038
- Odyssey North – 3,500 tpd
-
- Stope production starts in 2030
- Full stope production in 2031-2038
- Odyssey South – 3,500 tpd
-
- Stope production starts in 2023
- Full stope production in 2024 to 2027
- East Malartic – 3,200
tpd
-
- Stope production starts in 2028
- Full stope production in 2030 to 2039
Run-of–mine ore from the pit will start to decrease in
2023, as the ore production from the underground starts at a rate
of 3,000 tpd. The underground should reach full production of
approximately 19,000 tpd by 2031.
Capital expenditures from 2021 to 2028 are expected to
total approximately $1.34 billion (on
a 100% basis), which includes $1,144
million in initial capital expenditures and $191 million in additional growth capital
expenditures. This total does not include any offsetting
revenue from pre-commercial sales. Effective for annual
periods beginning on or after January 1,
2022, revenue and related production costs incurred during
the pre-commercial production phase are recognized in the Company's
statements of income (loss) based on the IAS16 Amendment from the
International Accounting Standards Board. During the 2021 to
2028 period, gold production is forecast to be approximately
932,000 ounces at total cash costs of approximately $800 per ounce (all numbers on a 100%
basis).
Average annual payable production is approximately 545,400
ounces of gold from 2029 to 2039, with total cash costs per ounce
of approximately $630.
Sustaining capital expenditures are expected to gradually
decline from 2029 to 2039, with an expected average of
approximately $56 million per
year.
Using a gold price of $1,550
per ounce and a C$/US$ foreign exchange rate assumption of 1.30,
the Odyssey project has an after-tax IRR of 17.5% and an after-tax
NPV (at a 5% discount rate) of $1.143B. The project has excellent
exploration potential and is currently expected to have a mine life
of 17 years, including 10 years of payable gold production
averaging 545,400 ounces per year (all numbers on a 100%
basis).
Updated Odyssey project operating parameters from the CM
Report and the updated guidance for 2021 are set out in the table
below. The production profile for the Canadian Malartic mine,
including production from the pits and the Odyssey project, is
provided below.
Given the strong underground mining experience of the
Partnership and the experience gained from operating the Canadian
Malartic mine since 2014, the Company is confident in the cost
assumptions used for the project. The Company believes that
estimates for such things as underground development and mining
costs, processing costs, and equipment procurement are more
advanced than what would typically be estimated in a Preliminary
Economic Assessment level study. The capital allocation will
continue to be refined as the project advances.
At Odyssey, the East Gouldie deposit has the highest
tonnage and grade and contains more than 70% of the total ounces
produced. The focus of the ongoing diamond drilling campaign
from surface is to further define high quality mineral resources by
the beginning of 2023 with a drill hole spacing of 75 metres.
Improving the geological confidence of the mineral resources is
expected to further de-risk the future production. With
additional exploration, the Company believes that additional
mineralization will come into the mine plan in the coming
years.
Odyssey Project Summary
|
(All numbers are
approximate and on a 100% basis)
|
Estimated Total Production
|
6.93
|
million gold
ounces
|
|
2.32
|
million silver
ounces
|
Average metallurgical
recovery
|
~95.2%
|
gold
|
|
~80.0%
|
silver
|
Average Annual gold
production
|
|
|
2023
|
46,600 oz
|
(825 k. tonnes,
1.84g/t gold and 1.10 g/t silver)
|
2024 to 2026 (average
per year)
|
81,500 oz
|
(1,344 k. tonnes,
1.98g/t gold and 1.10g/t silver)
|
2027
|
256,200 oz
|
(2,810 k. tonnes,
2.98g/t gold and 1.10g/t silver)
|
2028
|
384,600 oz
|
(3,333 k. tonnes,
3.79g/t gold and 1.10g/t silver)
|
2029 to 2039 ( average
per year)
|
545,400 oz
|
(6,463 k. tonnes,
2.76g/t gold and 1.10g/t silver)
|
Minesite costs per tonne
|
|
|
2023
|
$93
|
C$/t
|
2024 to 2026 (average
per year)
|
$77
|
C$/t
|
2027
|
$79
|
C$/t
|
2028
|
$79
|
C$/t
|
2029 to 2039 ( average
per year)
|
$61
|
C$/t
|
Average total cash costs on a by-product basis
(including royalties)
|
2023 to
2028
|
800
|
/oz
|
2029 to
2039
|
630
|
/oz
|
Royalty
|
5.5
|
%
|
NSR
|
Mine life
|
17
|
years
|
Capital Expenditures
|
|
|
Initial capital
expenditures
|
$1,144
|
million (2021 to
2028)
|
Other growth capital
expenditures
|
$191
|
million (2021 to
2028)
|
Gold production 2021
to 2028
|
932
|
thousand
ounces
|
Sustaining capital
expenditures
|
$56
|
million per year
(2029-2039)
|
Breakdown of Capital
Expenditures by year (2021 - 2028)
|
2021
|
$114
|
million
|
2022
|
$204
|
million
|
2023
|
$137
|
million
|
2024 to 2026 (average
per year)
|
$164
|
million
|
2027
|
$209
|
million
|
2028
|
$180
|
million
|
Breakdown of Initial
Capital Expenditures by category
|
Shaft &
Surface
|
$478
|
million
|
Mining
Equipment
|
$163
|
million
|
U/G Development &
Construction
|
$503
|
million
|
Reclamation Costs
|
$3.9
|
million for Odyssey
Project only
|
Economic Assumptions:
|
|
|
Gold Price
|
$1,550
|
|
Silver
Price
|
$22.00
|
|
USD:CAD
|
1.30
|
|
Effective tax
rate
|
38
|
%
|
|
Permits for Odyssey North and South were granted in 2020
to allow the first phase of the project to begin. At this
time, the Certificate of Authorization ("CofA") for the shaft has
not yet been obtained and the CofA for the waste rock management
requires modification.
A request for a decree amendment, including permits to
develop the East Gouldie and East-Malartic zones will be sent to the Quebec
"Ministère de l'Environnement et de la Lutte contre les changements
climatiques" on February 12,
2021. The Partnership has received confirmation that mining
the additional zones at the project does not trigger additional
Federal permitting requirements.
Hope Bay – Focus is to design an optimal mining and
milling strategy around the geological potential of the land
package
On February 2, 2021, Agnico
Eagle completed the acquisition of TMAC. The cost of the
acquisition was approximately $226
million (equity value), plus the assumption of TMAC's
outstanding debt of $134
million. The change of control of TMAC triggered a
one-time option to buy-back a 1.5% net smelter return ("NSR")
royalty on Hope Bay from Maverix Metals Inc. for $50 million. Agnico Eagle has provided
notice that it intends to exercise this buy-back option, and the
buy-back is expected to close in mid-February 2021. The cost
of the royalty buy-back will be incorporated into the ultimate TMAC
purchase price for accounting purposes. Maverix Metals Inc.
still retains a 1% NSR royalty.
With the acquisition of TMAC, the Company acquires a 100%
interest in the Hope Bay Property, which is located in the
Kitikmeot region of Nunavut,
approximately 685 kilometres northeast of Yellowknife and 125 kilometres southwest of
Cambridge Bay. The land package includes the Hope Bay and Elu
greenstone belts. The 80-kilometre long Hope Bay greenstone
belt hosts three gold deposits (Doris, Madrid and Boston) with historical mineral reserves and
mineral resources and over 90 regional exploration targets.
Agnico Eagle believes that Hope Bay is similar in scale and scope
to its Meliadine property.
The property contains significant infrastructure
including:
- Underground mine development at the Doris and
Boston deposits
- A fully enclosed processing plant and a tailings
impoundment area at Doris
- A gravel air strip at Doris capable of handling Boing 737
aircraft and a secondary gravel air strip at Boston
- A port with a laydown facility and fuel storage at
Roberts Bay
- An all-weather road network, a diesel power plant and an
office-accommodations complex
TMAC has established relationships with Inuit
residents and organizations and the Government of Nunavut. An
Inuit Impact and Benefits Agreement is in place with the Kitikmeot
Inuit Association. Historically, a portion of the workforce has
come from Nunavut and TMAC was
also successful in sourcing workers from across Canada, with a large component coming from
Western Canadian labour markets.
Hope Bay Property Hosts Three Known Deposits Containing
Significant Mineral Reserves and Mineral Resources
The Doris gold deposit consists of north-south trending,
structurally controlled quartz veins in sheared and altered mafic
volcanic rocks. Gold occurs in the veins both as disseminations and
in association with pyrite. Veins typically range from a few
centimetres to several metres in width and the veins can be traced
for up to 3.0 kilometres along strike.
At the Madrid area,
several mineralized zones have been delineated within a north-south
trending package of sheared and altered mafic volcanic, gabbroic
and ultramafic rocks. The gold mineralization typically
occurs with pyrite in quartz-carbonate stockworks.
The geology in the area of the Boston deposit is an assemblage of mafic and
felsic volcanic rocks in contact with sedimentary rocks, all of
which are complexly folded. Gold mineralization occurs in
structurally controlled quartz-carbonate veins with disseminated
pyrite. The veins are typically developed along lithological
contacts.
The Hope Bay Project has been subject to a significant
amount of diamond drilling both by TMAC and previous
operators. A NI 43-101 technical report published by TMAC on
March 30, 2020, titled "NI 43-101
Technical Report On The Hope Bay Property, Nunavut, Canada" set out estimated mineral
reserves and mineral resources at Hope Bay. While the Company
reviewed this historical estimate as part of its due diligence
investigation of TMAC and believes it to be relevant and reliable,
a qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral
reserves and the Company is not treating the historical estimate as
current mineral resources or mineral reserves. TMAC's
technical report contained measured mineral resources of 0.48
million ounces of gold (1.6 million tonnes grading 9.5 g/t gold)
and indicated mineral resources of 4.69 million ounces (20.2
million tonnes grading 7.2 g/t gold). Contained within the
measured and indicated mineral resources were proven mineral
reserves of 0.01 million ounces (0.1 million tonnes grading 4.1 g/t
gold) and probable mineral reserves of 3.53 million ounces (16.8
million tonnes at 6.5 g/t gold). In addition, there was also
inferred mineral resources of 2.13 million ounces (10.9 million
tonnes at 6.1 g/t gold). The mineral reserve estimate above
was prepared using an average long-term gold price of US$1,325 per ounce, a C$/US$ exchange rate of
1.34 and a cut-off grade of 4.0 g/t gold for longhole stopes, 3.0
g/t gold for incremental development ore required for mining and
2.0 g/t gold for the Madrid North crown pillar surface
mining. The mineral resource estimate above was prepared
using an average long-term gold price of US$1,500 per ounce, a C$/US$ exchange rate of
1.34 and a block cut-off grade of 3.5 g/t gold.
Near-Term Focus is to Optimize the Doris Mining Operations
While Remaining Cashflow Neutral in 2021
At the Doris deposit, long-hole mining methods are
employed to exploit the vein hosted mineralization. Stopes
are backfilled using unconsolidated rock fill. In the current
mining plan, cemented rock fill ("CRF") is expected to be
implemented. The CRF is expected to be mixed at surface and
trucked to the stopes underground. Ground conditions at Doris
are good, and standard ground support systems are used.
The Doris mill facility has a design capacity of
approximately 2,000 tpd. It is currently being operated with
a three week on and a three week off rotation. The plant
recovers gold from the ore using a combination of crushing,
grinding, gravity concentration, flotation and cyanide
leaching.
In 2021, the Company expects to continue mining at the
Doris deposit while undertaking optimization efforts.
Assuming a gold price of $1,750 per
ounce and a C$/US$ foreign exchange rate of 1.30, Hope Bay is
forecast to be approximately cash flow neutral in 2021. Hope
Bay is not currently included in the Company's production, cost or
capital expenditure guidance for 2021. On a quarterly basis,
Doris is expected to produce approximately 18,000 to 20,000 ounces
of gold at total cash costs per ounce of $950 to $975.
Key permits and approvals required to construct and mine
the Doris, Madrid and Boston deposits at up to 4,000 tpd are already
in place. Significant changes to the operational plans may
require amendments to the existing permits.
Underground water inflow is currently mitigated through a
combination of grouting and seasonal storage in the tailings
facility. During the summer months water is processed through
a treatment plant to remove impurities and suspended solids and is
then discharged to the sea. Permits to discharge to the sea
are in place, but the Company will be seeking approval from Nunavut
Impact Review Board ("NIRB") to make modification to the diffuser
in 2021.
Longer-term Focus will be on Exploration and Evaluation of
Larger Production Scenarios
In 2021, the Company expects to continue mining at the
Doris deposit while undertaking optimization efforts, as well as
initiating a property wide exploration program and evaluating the
Madrid and Boston deposits for future production.
The Company believes that Hope Bay could ultimately produce 250,000
to 300,000 ounces of gold per year at reasonable costs and capital
spending levels.
Agnico Eagle believes that there is excellent potential to
increase mineral resources through exploration. At the Hope
Bay mine, the Company expects to spend $16.2
million for 69,600 metres of drilling, including
$5.5 million for 29,800 metres of
delineation drilling to support production at the Doris mine and
$10.7 million for 39,800 metres of
drilling on exploration targets around the Doris, Madrid and Boston deposits and other targets along the
belt. The Company is currently evaluating exploration
priorities and metres allocated on each program and may adjust the
allocation during the course of 2021.
There is good potential to add to the mineral resources at
Doris beneath the diabase dike with continued drilling on the BTD
Extension, BTD Connector and BTD Central zones. Historical
results at the BTD connector intersected 10.7 g/t gold over 4.3
metres at a depth of approximately 600 metres. At BTD
Central, historical drilling intersected up to 22.5 g/t gold over
4.9 metres at a depth of approximately 450 metres.
Exploration drilling by TMAC in 2019 in the Doris Valley area,
approximately 350 metres north of the BTD Extension zone,
intersected 9.0 g/t gold over 8.5 metres at a shallow depth below
surface.
There are high-grade exploration intercepts beneath the
Madrid Suluk zone mineral resources (up to 10.8 g/t gold over 9.3
metres at approximately 660 metres depth) and along strike to the
south in the Patch 7 area (up to 14.4 g/t gold over 7.4 metres at
approximately 300 metres depth). Continued drilling to
upgrade inferred mineral resources and identify higher-grade trends
has the potential to add to the mineral resources at Madrid
North.
Exploration drilling below the mineral resources at
Boston by TMAC in 2019 also
intersected high-grade mineralization, including 20.2 g/t gold over
3.4 metres at approximately 550 metres depth. Historical
drilling by a previous operator intersected significant
mineralization at approximately 1,000 metres below surface (56.6
g/t gold over 8.7 metres). Continued drilling has the
potential to add to the Boston
mineral resources.
There is also good exploration potential elsewhere within
the Hope Bay and Elu greenstone belts. The majority of
historical and recent exploration has focused on defining and
expanding the known deposits. To date, over 90 regional
exploration targets have been defined by surface mapping and
sampling, and geophysical and geochemical surveys.
Longer-Term Pipeline Opportunities – Potential for
Production Growth Beyond 2024; Upper Beaver Technical Study
Advancing; Hammond Reef declares Initial Mineral
Reserves
Agnico Eagle has a strong pipeline of development projects
that could provide further gold production growth beyond
2024. These opportunities are typically at an earlier stage
than those outlined above. A brief summary of the longer-term
opportunities is set out in the following table. More
detailed updates on the Upper Beaver and Hammond Reef projects are
set out below.
Minesite/Region
|
Opportunity
|
Goldex
|
Evaluation of the
Deep 2 Zone (below 1,500 metres)
|
Kittila
|
Drilling continues to
extend the mineralization at depth and there is good potential to
further optimize the development of the lower mine with shaft
access (shaft construction is expected to be completed in the first
half of 2022). The deepest intersection to date returned 6.5
g/t gold over 27.5 metres estimated true thickness at 1,878 metres
depth and open at depth
|
Meadowbank
Complex
|
Continued evaluation
of the regional potential at Amaruq. A new surface discovery
could potentially extend the underground mine life
|
Meliadine
|
Further drill-testing
of known zones and gold occurrences on the 80-kilometre long
greenstone belt. Approximately 50 gold showings have been
documented at the Meliadine property
|
Kirkland
Lake
|
At Upper Beaver, 2020
drilling focused on infilling and expanding mineral
resources. Additional drilling is planned at Upper Beaver in
2021 to test an open pit concept and an internal evaluation is
expected to be completed at year-end 2021. Drilling will also
test other targets in the Kirkland Lake area, including the Upper
Canada deposit
|
Hammond
Reef
|
A positive internal
technical study was completed in 2020, resulting in the declaration
of the first open pit mineral reserves of 3.32 million ounces of
gold (123.5 million tonnes grading 0.84 g/t gold). Going
forward, studies will continue to evaluate the optimization of the
deposit and potential mining scenarios to further improve project
economics and explore to expand the current mineral reserves and
mineral resources
|
Santa
Gertrudis
|
Evaluation of known
mineralized trends with a view to potentially restart operations at
this past-producing heap leach mine continued in 2021. The
high-grade mineralization at Amelia creates the potential to add a
mill circuit to process higher grade sulphide ore from
underground. Additional drilling is planned in 2021 to
upgrade and expand oxide and sulphide mineral resources
|
*For a detailed
discussion of mineral reserves and mineral resources see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31,
2020)"
|
Kirkland Lake Project – 2020 Drilling Focused on
Infilling and Expanding Mineral Resources at Upper Beaver Deposit;
High-Grade Footwall Zone Remains Open at Depth
The 100% owned Kirkland
Lake project in northeastern Ontario covers approximately 25,506 hectares,
a large property that is approximately 35 kilometres long by 17
kilometres wide.
Exploration activity at the project during the fourth
quarter of 2020 focused on conversion drilling of shallow and deep
mineral resources at the Upper Beaver deposit. Three drill
rigs targeted the shallow mineralization and three drill rigs
targeted mineralization at depths between 1,050 and 1,600 metres
below surface, completing 51 drill holes or branches totalling
14,700 metres. During all of 2020, 103 holes or branches were
drilled, totalling 28,300 metres at the Kirkland Lake project, mostly at Upper
Beaver.
Exploration results from Upper Beaver were last reported
in the Company's news release dated October
28, 2020.
The Upper Beaver deposit's 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.
As of December 31, 2020,
Upper Beaver has approximately 1.4 million ounces of gold and
20,000 tonnes of copper in underground probable mineral reserves
(8.0 million tonnes grading 5.43 g/t gold and 0.25% copper);
403,000 ounces of gold and 5,100 tonnes of copper in underground
indicated mineral resources (3.6 million tonnes grading 3.45 g/t
and 0.14% copper); and 1.4 million ounces of gold and 17,300 tonnes
of copper in underground inferred mineral resources (8.7 million
tonnes grading 5.07 g/t and 0.20% copper). For a detailed
discussion of mineral reserves and mineral resources see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31, 2020)".
Selected recent intercepts from deep drilling at 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
set out 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 deep 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)
|
KLUB20-200W13
|
East
Porphyry
|
1,503.8
|
1,507.0
|
1,329
|
3.0
|
9.6
|
9.6
|
0.7
|
KLUB20-200W14
|
East
Porphyry
|
1,511.3
|
1,514.6
|
1,350
|
3.2
|
11.5
|
11.5
|
1.0
|
KLUB20-200W16
|
East
Porphyry
|
1,537.5
|
1,543.3
|
1,392
|
4.4
|
17.9
|
17.9
|
1.4
|
KLUB20-163W7
|
Footwall
|
1,338.0
|
1,352.5
|
1,246
|
11.2
|
9.7
|
7.4
|
0.5
|
KLUB20-163W8
|
Footwall
|
1,336.8
|
1,342.0
|
1,245
|
3.7
|
28.9
|
28.9
|
0.2
|
KLUB20-163W9
|
East
Porphyry
|
1,266.0
|
1,269.8
|
1,192
|
3.5
|
20.7
|
20.7
|
0.0
|
and
|
East
Porphyry
|
1,277.7
|
1,281.0
|
1,203
|
3.0
|
6.5
|
6.5
|
0.4
|
KLUB20-307W1
|
East
Porphyry
|
1,614.0
|
1,621.0
|
1,398
|
5.7
|
8.9
|
8.9
|
1.3
|
and
|
East
Porphyry
|
1,646.5
|
1,650.8
|
1,423
|
3.4
|
8.8
|
8.8
|
0.3
|
KLUB20-307W2
|
East
Porphyry
|
1,592.7
|
1,597.5
|
1,367
|
4.4
|
15.2
|
15.2
|
0.9
|
and
|
Footwall
|
1,651.6
|
1,656.3
|
1,410
|
3.6
|
4.5
|
4.5
|
0.5
|
and
|
Footwall
|
1,687.7
|
1,698.0
|
1,439
|
7.8
|
4.9
|
4.9
|
0.9
|
and
|
Footwall
|
1,712.0
|
1,716.4
|
1,455
|
3.3
|
17.7
|
17.3
|
1.4
|
KLUB20-310AW2
|
Footwall
|
1,458.5
|
1,468.0
|
1,335
|
6.8
|
7.5
|
7.5
|
0.8
|
including
|
Footwall
|
1,461.5
|
1,465.5
|
1,335
|
2.8
|
14.5
|
14.5
|
1.4
|
and
|
Footwall
|
1,476.8
|
1,488.5
|
1,352
|
8.3
|
5.5
|
5.5
|
3.5
|
KLUB20-310AW3
|
Footwall
|
1,434.6
|
1,439.5
|
1,326
|
3.8
|
39.9
|
25.4
|
0.5
|
and
|
Footwall
|
1,464.8
|
1,472.2
|
1,356
|
5.7
|
4.7
|
4.7
|
0.3
|
*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 Project – Upper Beaver Composite
Longitudinal Section]
Deep drilling at Upper Beaver during the fourth quarter of
2020 targeted the Deep East Porphyry zone and the nearby,
subparallel Deep Footwall zone at depths ranging between 1,050 and
1,600 metres below surface.
Hole KLUB20-307W2, the deepest conversion hole drilled in
2020, targeted the down-plunge extension of the Deep Footwall zone
and returned multiple intercepts including 4.5 g/t gold and 0.46%
copper over 3.6 metres at 1,410 metres depth; 4.9 g/t gold and
0.91% copper over 7.8 metres at 1,439 metres depth; and 17.3 g/t
gold and 1.35% copper over 3.3 metres at 1,455 metres depth.
The deepest intersection is approximately 40 metres down-plunge
from the currently defined mineral resource outline, indicating the
potential to extend the Deep Footwall zone mineral resource further
at depth.
All three branches from pilot hole KLUB20-310A (including
previously reported hole KLUB20-310AW1) intersected significant
mineralization near the eastern margin of the Deep Footwall zone's
mineral resource outline, including hole KLUB20-310AW2, which
intersected 5.5 g/t gold and 3.53% copper over 8.3 metres at 1,352
metres depth; and hole KLUB20-310AW3, which intersected 25.4 g/t
gold and 0.51% copper over 3.8 metres at 1,326 metres
depth.
The above results demonstrate the continuity of
mineralization within and beyond the known Deep Footwall zone
mineralized shoot, indicating the potential for mineral resource
growth at depth and laterally.
In conversion drilling at depth in the Deep East Porphyry
zone, holes KLUB20-200W13, KLUB20-200W14, KLUB20-200W16 and
KLUB20-307W1 demonstrated good continuity of mineralization along
the western edge of the ore-shoot over a 135-metre strike
length. Higher copper grades were also observed in this
portion of the zone, with hole KLUB20-200W16 intersecting 17.9 g/t
gold and 1.39% copper over 4.4 metres at 1,392 metres
depth.
Other highlights from conversion drilling in the Deep East
Porphyry zone include: hole KLUB20-163W9, which intersected 20.7
g/t gold and 0.03% copper over 3.5 metres at 1,192 metres depth and
6.5 g/t gold and 0.35% copper over 3.0 metres at 1,202 metres
depth; and hole KLUB20-307W2, which intersected 15.2 g/t gold and
0.89% copper over 4.4 metres at 1,367 metres depth.
In 2021, the Company plans to drill 36,500 metres at Upper
Beaver in a program that will include additional shallow drilling
to test an open pit concept and further deep drilling to convert
mineral resources to mineral reserves. An internal technical
study at Upper Beaver that will include an updated mineral reserve
and mineral resource estimate incorporating drill results from 2020
and 2021 is expected to be completed by the end of 2021.
Elsewhere on the Kirkland
Lake property in 2021, the Company plans to drill 15,700
metres in a regional exploration program that will include
Upper Canada and Bidgood as
targets.
Hammond Reef – First Mineral Reserves Declared;
Optimization Studies Ongoing to Further Improve Project
Economics
The 100% owned Hammond Reef property in northwestern
Ontario covers approximately
32,070 hectares, and is located approximately 260 kilometres west
of Thunder Bay. The property is accessible via secondary
gravel roads from the town of Atikokan, which is located approximately 30
kilometres to the southwest.
The Hammond Reef deposit is a high tonnage low grade gold
deposit that is primarily hosted in variably sheared and altered
granitoid rocks. Gold mineralization is typically associated
with fine grained pyrite mineralization that is often associated
with fractures, veinlets and veins filled with various combinations
of chlorite, calcite and quartz.
Resource sharing agreements with local First Nations are
in place and the project has received environmental approval from
both Federal and Provincial agencies. In January 2020, the Company exercised its right of
first refusal to repurchase a 2% NSR royalty on the Hammond Reef
project from Kinross Gold Corporation for $12 million. The property remains subject
to a 2% NSR royalty held by Osisko Royalties.
A positive internal technical study at Hammond Reef was
completed by the Company in 2020, which resulted in the declaration
of the first mineral reserves for the project on December 31, 2020. Open pit mineral
reserves are estimated at 3.32 million ounces of gold (123.5
million tonnes grading 0.84 g/t gold). In addition, the
project contains 2.3 million ounces of measured and indicated
mineral resources (133.4 million tonnes grading 0.54 g/t
gold). Mineral reserves were calculated using a gold price of
$1,350 per ounce and a C$/US$ foreign
exchange rate assumption of 1.30. For a detailed discussion
of mineral reserves and mineral resources see "Detailed Mineral
Reserve and Mineral Resource Data (as at December 31, 2020)". Set out below is a
summary of the internal technical study at Hammond Reef.
Mining activities are expected to be carried out in two
separate pits (East and West Pits) with a 30-metre buffer zone from
the Marmion water reservoir. The West Pit contains three
sequential mining phases and the East Pit has one mining phase for
a total of four phases over the projected 12-year mine
life.
The plant will utilize a conventional milling process with
a design capacity of 30,000 tpd, and an average recovery of
89.1%. Tailings will be contained in a conventional tailings
storage facility that will comply with guidelines issued by the
Mining Association of Canada and
the Canadian Dam Association.
Average annual gold production is expected to be
approximately 272,000 ounces at average total cash costs of
$748 per ounce and average AISC of
$806 per ounce. Initial capital
costs are approximately $1.0
billion. Total sustaining capital and closure costs
are approximately $112 million and
$47 million, respectively.
Using a gold price of $1,550
per ounce, and a C$/US$ foreign exchange rate assumption of 1.30,
the Hammond Reef project has an after-tax IRR of 9.8% and an
after-tax NPV (at a 5% discount rate) of approximately $245 million. Additional details on the
project are described below.
Hammond Reef Project Summary
|
(All numbers are
approximate)
|
|
|
Estimated Total Gold Production
|
2.96
|
million gold
ounces
|
Average metallurgical
recovery
|
89.1
|
%
|
|
Average Annual gold production
|
|
|
Year 1
|
38,500
|
oz
|
(7,435 k. tonnes,
0.725g/t gold)
|
Average Year 2 to
11
|
271,600
|
oz
|
(10,950 k. tonnes,
0.865g/t gold)
|
Year 12
|
92,400
|
oz
|
(6,536 k. tonnes,
0.5g/t gold)
|
Average Strip Ratio
|
1.39
|
|
Royalty
|
2.0
|
%
|
NSR
|
Minesite costs per tonne
|
$23
|
C$/t
|
Average total cash costs on a by-product
basis
|
$750
|
/oz
|
Average AISC
|
$810
|
/oz
|
Mine life
|
12
|
years
|
Commercial production
|
2.5 years after start
of construction
|
Capital Expenditures
|
|
|
Mining
Assets
|
$122.0
|
million
|
Processing
Plant
|
$309.0
|
million
|
Tailings and
Environment
|
$210.0
|
million
|
On-Site
Infrastructure
|
$247.0
|
million
|
Other
|
$122.0
|
million
|
Total
|
$1,010.0
|
million
|
Capital Expenditure Breakdown by
year
|
Construction Year
1
|
45
|
%
|
|
Construction Year
2
|
45
|
%
|
|
Construction Year
3
|
10
|
%
|
|
Reclamation Costs
|
$50.0
|
million
|
Economic Assumptions:
|
|
|
Gold Price
|
$1,550
|
|
USD:CAD
|
1.30
|
|
Effective tax
rate
|
34
|
%
|
|
The Company requires additional federal and provincial
permits to begin construction activities and with a 2.5-year
construction timeline, the Hammond Reef project could potentially
be ready for production in 2027. At this time, the project
has not been approved for development.
Going forward, the Company will continue to evaluate
optimization of the project and potential mining scenarios to
further improve project economics. The Company will also
carry out ore-sorting studies and evaluate other regional
opportunities near the Hammond Reef project.
Gold Mineral Reserves Increase to Record Level in 2020,
Driven by Positive Outcomes at Hammond Reef, Meliadine, LaRonde
Zone 5 and Pinos Altos and
Conversion Drilling Success at Several Mines
At December 31, 2020, the
Company's proven and probable mineral reserve estimate (net of 2020
gold production) totaled 348 million tonnes of ore grading 2.15 g/t
gold, containing approximately 24.1 million ounces of gold.
This is an increase of approximately 2.5 million ounces of gold
(12%) compared with the prior year. The ore extracted from
mines in 2020 contained 1.9 million ounces of gold in-situ
(29.3 million tonnes grading 2.03 g/t gold).
The large increase in proven and probable mineral reserve
ounces is largely due to the inclusion of initial mineral reserves
at Hammond Reef. Excluding the Hammond Reef mineral reserve
addition, the overall mineral reserve grade at Agnico Eagle's
remaining assets would be approximately 2.88 g/t gold at
December 31, 2020, which would
represent a 2% increase in grade compared to the 2.83 g/t gold a
year earlier. Agnico Eagle continues to have one of the
highest mineral reserve grades among its North American
peers.
Highlights from the December 31,
2020 mineral reserve estimate include:
- At the Hammond Reef deposit, a declaration of initial,
open-pit probable mineral reserves of 3.3 million ounces of gold
(124.5 million tonnes grading 0.84 g/t gold)
- At the LaRonde Complex, an increase of 0.2 million ounces
of gold in mineral reserves (net of 2020 gold production), mainly
due to the addition of 0.3 million ounces of gold in mineral
reserves in Zone 3 and Zone 5 at LZ5, and the addition of 0.2
million ounces of gold following the review of high grade capping
at LaRonde which more than offset the mining of 0.37 million ounces
of gold
- At the Canadian Malartic mine, a modification to the
Barnat pit added approximately 0.15 million ounces of gold in
mineral reserves (reflecting Agnico Eagle's 50% interest). This
addition partially compensated for the mining of approximately
0.325 million in-situ ounces of gold (50% basis) in 2020
- At the Meliadine mine, the addition of 0.36 million
ounces of gold in initial underground mineral reserves at the
Discovery deposit partially offset the depletion of 0.33 million
ounces due to mining
The year-end 2020 mineral reserve estimate excludes
any mineral reserve at Hope Bay.
The Company's December 31,
2020 gold mineral reserves are set out below, compared with
the gold mineral reserves a year earlier:
Gold Mineral Reserves By Mine or
Deposit
|
Proven & Probable Mineral Reserve (000s
gold ounces)
|
Average Mineral Reserve Gold Grade
(g/t)
|
|
2020
|
2019
|
Change (000s oz gold)
|
2020
|
2019
|
Change (g/t gold)
|
Northern Business
|
|
|
|
|
|
|
LaRonde
|
2,984
|
2,888
|
96
|
6.12
|
6.02
|
0.10
|
LaRonde Zone
5
|
788
|
686
|
102
|
2.08
|
2.30
|
(0.22)
|
LaRonde Complex
|
3,772
|
3,574
|
198
|
4.36
|
4.59
|
(0.23)
|
Canadian Malartic
(50%)
|
2,214
|
2,389
|
(175)
|
1.12
|
1.11
|
0.01
|
Goldex
|
1,115
|
1,088
|
27
|
1.57
|
1.61
|
(0.04)
|
Akasaba
West
|
147
|
147
|
—
|
0.85
|
0.85
|
—
|
Meadowbank
mine
|
3
|
3
|
—
|
2.34
|
2.24
|
0.10
|
Amaruq
|
2,888
|
3,318
|
(430)
|
3.87
|
3.96
|
(0.09)
|
Meadowbank Complex
|
2,891
|
3,320
|
(430)
|
3.87
|
3.96
|
(0.09)
|
Meliadine
|
4,025
|
4,067
|
(42)
|
5.89
|
6.10
|
(0.21)
|
Upper
Beaver
|
1,395
|
1,395
|
—
|
5.43
|
5.43
|
—
|
Kittila
|
4,067
|
4,096
|
(29)
|
4.16
|
4.40
|
(0.24)
|
Subtotal without Hammond Reef
|
19,625
|
20,077
|
(452)
|
3.07
|
3.10
|
(0.03)
|
Hammond
Reef
|
3,323
|
—
|
3,323
|
0.84
|
|
|
Subtotal
|
22,948
|
20,077
|
2871
|
2.21
|
3.10
|
(0.89)
|
Southern Business
|
|
|
|
|
|
|
Pinos
Altos
|
878
|
957
|
(79)
|
2.03
|
2.06
|
(0.03)
|
Creston
Mascota
|
—
|
61
|
(61)
|
|
2.49
|
|
La India
|
256
|
490
|
(235)
|
0.66
|
0.75
|
(0.09)
|
Subtotal
|
1,134
|
1,508
|
(374)
|
1.38
|
1.32
|
0.06
|
Subtotal Mineral Reserves without Hammond
Reef
|
20,759
|
21,585
|
(826)
|
2.88
|
2.83
|
0.05
|
Total Mineral Reserves
|
24,082
|
21,585
|
2,497
|
2.15
|
2.83
|
(0.68)
|
Data set out in the table above and certain other data in
this news release have been rounded to the nearest thousand.
For a detailed discussion of mineral reserves and mineral resources
see "Detailed Mineral Reserve and Mineral Resource Data (as at
December 31, 2020)". Mineral
reserves are in-situ, taking into account all mining recoveries and
dilutions, before mill or heap-leach recoveries.
The economic parameters used to estimate mineral reserves
and mineral resources for all properties are set out in the table
below. In prior years, the Company's economic parameters were
determined using historic three-year average metals prices and
foreign exchange rates in accordance with the U.S. Securities and
Exchange Commission (the "SEC") guidelines. These guidelines
require the use of prices that reflect current economic conditions
at the time of mineral reserve estimation, which the SEC has
interpreted to mean historic three-year average prices. Given
the current commodity price environment, Agnico Eagle continues to
use more conservative gold and silver prices.
Assumptions used for the December 31, 2020 mineral reserve estimate at all
mines and advanced projects reported by the Company
|
Metal prices
|
Exchange rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican peso per US$1.00
|
US$ per €1.00
|
Operations and
projects
|
$1,250
|
$17
|
$2.75
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hammond
Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper
Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
The above metal price assumptions are below the three-year
historic gold and silver price averages (from January 1, 2018 to December 31, 2020) of approximately $1,477 per ounce and $17.49 per ounce, respectively. For longer
term projects that have not been approved for development, such as
the Hammond Reef project, the Company believes that it is
appropriate to use a gold price assumptions for mineral reserve
estimation that is more reflective of the current gold price
environment. The mineral resources at all properties are
estimated using 75% of the cut-off grades used to estimate the
mineral reserves.
The largest contribution to the increase in ounces of gold
in open-pit probable mineral reserves is related to the completion
of an internal technical study and declaration of initial open-pit
mineral reserves at Hammond Reef of 3.3 million ounces of gold
(124.5 million tonnes grading 0.84 g/t gold). A summary of
the results of the internal technical study at Hammond Reef is set
out above under "Hammond Reef – First Mineral Reserves Declared;
Optimization Studies Ongoing to Further Improve Project
Economics".
At the Meliadine mine, an internal study led to the
conversion from indicated mineral resources to underground mineral
reserves at the Discovery zone of 363,000 ounces of gold (2.1
million tonnes grading 5.41 g/t gold), which replaced the mining of
approximately 330,000 in-situ ounces of gold in 2020.
Delineation drilling and a revision of the cut-off grade
contributed to a net decrease of approximately 42,000 ounces of
gold in mineral reserves at Meliadine.
At the Amaruq deposit at the Meadowbank Complex, a
reinterpretation of geology and new delineation drilling resulted
in a decrease of approximately 150,000 ounces of gold in mineral
reserves, while 228,000 ounces of in-situ gold were mined from the
open pit. The mining dilution parameters in the mineral
reserves and cut-off grade were also adjusted, resulting in an
additional reduction of approximately 60,000 ounces of gold at
year-end. Overall, Amaruq's combined open-pit and underground
mineral reserves saw a net decrease of approximately 430,000 ounces
of gold at year-end 2020.
At the LaRonde Complex, following the higher grade
achieved in the reconciliation performance at the LaRonde mine, the
high-grade capping parameters were optimized and as a result
approximately 180,000 ounces of gold were added to mineral
reserves. Drilling added another 70,000 ounces of gold to the
mineral reserves and 145,000 ounces of gold from Zone 11-3 were
transferred from LZ5 to the LaRonde mine's mineral reserves.
At the LZ5 mine, 272,000 ounces of gold were added to mineral
reserves. These additions of mineral reserves more than
offset the 370,000 ounces of in-situ gold mined in 2020, resulting
in a net increase of approximately 198,000 ounces of gold in
mineral reserves at the LaRonde Complex.
At the Goldex mine, approximately 90,000 ounces of gold
were added to mineral reserves due to conversion drilling in the
Deep 1, Deep 2 and South zones. The stope design process has
evolved from being manual to using a mine shape optimization
software which resulted in the addition of approximately 76,000
ounces of gold to the mineral reserves. These additions of
mineral reserves more than offset the 140,000 ounces of in-situ
gold mined in 2020, resulting in a net increase of approximately
27,000 ounces of gold in mineral reserves at Goldex.
At the Canadian Malartic mine, an optimization of the
Barnat pit design and the use of new mineral reserve parameters
added approximately 150,000 ounces of gold in mineral reserves
(reflecting Agnico Eagle's 50% interest). This addition,
together with the mining of approximately 325,000 in-situ ounces of
gold (50% basis) in 2020, results in a net decrease of
approximately 175,000 ounces of gold in mineral reserves
(50%).
Continued exploration success at the Odyssey, East Gouldie
and East Malartic underground
deposits, collectively known as the Odyssey project, suggest that a
significant portion of the underground Odyssey project may be
converted into mineral reserves in the future, to replace the ore
currently being mined at the adjacent Canadian Malartic and Barnat
pits. A summary of the results of the CM Report at
the Odyssey project is set out above under "Odyssey Project –
Drilling Significantly Expands Inferred Mineral Resources at East
Gouldie Supporting Approval of Underground Mine
Development".
At the Kittila mine, conversion and exploration drilling,
as well as a decrease of the cut-off grade parameters, resulted in
an increase of approximately 210,000 ounces of gold in mineral
reserves. With the mining of a record 240,000 ounces of
in-situ gold in 2020, the result was an overall decrease in mineral
reserves of 29,000 ounces of gold at Kittila.
At the Pinos Altos mine,
the Company estimated initial underground probable mineral reserves
at Cubiro of 143,000 ounces of gold (1.5 million tonnes grading
2.99 g/t gold) and initial open-pit probable mineral reserves at
Reyna East of 57,000 ounces of gold (1.2 million tonnes grading
1.47 g/t gold). The review of mining parameters and cut-off
grades reduced mineral reserves by approximately 108,000 ounces of
gold at the main deposits. With the mining of approximately
123,000 in-situ ounces of gold in 2020, there was a net decrease of
approximately 79,000 ounces of gold in mineral reserves at Pinos
Altos. The mineral reserves at nearby Creston Mascota have
now depleted and the operation has reached the end of its mine
life.
At the La India mine, there was a reduction of 95,000
ounces of gold in mineral reserves due to lower sulphide recoveries
and a reduction of 20,000 ounces of gold due to geological
reinterpretation and drilling. With the mining of
approximately 119,000 in-situ ounces of gold in 2020, there was a
net decrease of 235,000 ounces of gold in mineral reserves at La
India.
It is the Company's goal to maintain its global mineral
reserves at approximately 10 times its annual gold production
rate. The current mineral reserves remain within this range
when compared to the Company's projected gold production guidance
for 2021.
In addition to gold, Agnico Eagle's proven and probable
mineral reserves include by-product metals of approximately 30
million ounces of silver at the Pinos
Altos, LaRonde and La India mines (40.7 million tonnes
grading an average of 22.77 g/t silver), plus 115,500 tonnes of
zinc and 39,000 tonnes of copper at the LaRonde mine (15.2 million
tonnes grading 0.76% zinc and 0.26% copper); 26,000 tonnes of
copper at the Akasaba West project (5.4 million tonnes grading
0.48% copper) and 20,000 tonnes of copper at the Upper Beaver
project (8.0 million tonnes grading 0.25% copper).
At an assumed gold price of $1,375 per ounce (leaving other assumptions
unchanged), the Company estimates there would be an approximate
5.6% increase in the gold contained in proven and probable mineral
reserves. Conversely, using a gold price of $1,125 per ounce (leaving other assumptions
unchanged), the Company estimates there would be an approximate
5.6% decrease in the gold contained in proven and probable mineral
reserves.
Measured and Indicated Mineral Resources Decrease by
15% to 15.2 million ounces of Gold Due to Conversion to Mineral
Reserves at Hammond Reef, Discovery, LZ5, Cubiro and Reyna de
Plata
Highlights from the December 31,
2020 measured and indicated mineral resource estimate
include:
- The overall decrease of indicated mineral resources was
due to the successful conversion of indicated mineral resources to
mineral reserves through the completion of studies in 2020 at
Hammond Reef, Discovery deposit at Meliadine, LZ5 and Cubiro and
Reyna de Plata at Pinos Altos
- The addition of 1.1 million of ounces of measured and
indicated mineral resources at Hammond Reef due to the mineral
resources now being reported using 75% of the cut-off grades used
to estimate the mineral reserves. The Hammond Reef deposit hosts
combined measured and indicated mineral resources of 2.3 million
ounces of gold (133 million tonnes grading 0.54 g/t gold)
- At LZ5, indicated mineral resources increased by 153,000
ounces of gold, mainly due to compilation of historical data and
the reclassification of the Ellison deposit as part of LZ5, which
offset the conversion of mineral resources to mineral
reserves
At December 31, 2020, the
Company's measured and indicated mineral resources totaled 15.3
million ounces of gold (341 million tonnes grading 1.40 g/t
gold). This represents a 15% (2.7 million ounce) decrease in
ounces of gold, and a 6% increase in grade (from 1.32 g/t gold)
compared to a year earlier (see the Company's news release dated
February 13, 2020 for details
regarding the Company's December 2019
measured and indicated mineral resource estimate).
The decrease in the Company's measured and indicated
mineral resources is largely due to the successful conversion of
indicated mineral resources to mineral reserves through studies and
the application of mine shape optimization to the reporting of
Goldex and Canadian Malartic indicated underground mineral
resources. These mineral resources are comprised of 10.2
million ounces of gold (131 million tonnes grading 2.44 g/t gold)
in underground indicated mineral resources and 5.1 million ounces
of gold (211 million tonnes grading 0.75 g/t gold) of open-pit
indicated mineral resources.
Conversion drilling at the Kittila, Amaruq, Goldex,
Meliadine, Pinos Altos and
El Realito (La India) properties
resulted in additions of approximately 382,000 ounces of gold to
measured and indicated mineral resources. Offsetting these
additions was the conversion of approximately 3.6 million ounces of
gold to mineral reserves at Hammond Reef, Discovery deposit at
Meliadine, LZ5 and Cubiro and Reyna de Plata at Pinos Altos.
At Hammond Reef, the decrease of indicated mineral
resources due to the declaration of 3.3 million ounces of gold in
probable mineral reserves was partially offset by the addition of
1.1 million of ounces of gold in indicated mineral resources due to
the open-pit mineral resources now being reported using 75% of the
cut-off grade used to estimate the mineral reserves. The
Hammond Reef deposit hosts indicated mineral resources of 2.3
million ounces of gold (133 million tonnes grading 0.54 g/t
gold).
At the Goldex mine, indicated mineral resources decreased
16% (327,000 ounces of gold) as the stope design process is now
completed using optimization software and non-recoverable material
after mining was removed from the mineral resources.
At the Canadian Malartic mine, the indicated mineral
resources below the pits are now primarily reported as underground
mining scenarios within a potentially mineable shape as set out in
the Canadian Institute of Mining, Metallurgy and Petroleum Best
Practice Guidelines for Exploration and for Estimation of Mineral
Resources and Mineral Reserves (November
2019) (the "CIM Guidelines"). This reporting change,
in addition to the conversion to mineral reserves at Barnat,
resulted in a reduction in indicated mineral resources of 326,000
ounces of gold.
Inferred Mineral Resources Increase by 8% to 23.4
Million Ounces, Largely Due to Infill Drilling at the East Gouldie
Deposit
Highlights from the December 31,
2020 inferred mineral resource estimate include:
- At the East Gouldie deposit at the Canadian Malartic mine
property, intensive exploration drilling during 2020
led to a 134% increase in inferred mineral resources to 3.2 million
ounces of gold (31.5 million tonnes grading 3.17 g/t gold)
(reflecting Agnico Eagle's 50% interest)
- At Santa
Gertrudis, inferred mineral resources increased
39% (457,000 ounces of gold) mainly due to exploration success at
the Amelia high-grade underground deposit
At December 31, 2020, the
Company's inferred mineral resources totaled 283 million tonnes
grading 2.57 g/t gold, or approximately 23.3 million ounces of
gold. This represents an approximate 9% (1.9 million ounce)
increase in ounces of gold, at a slight decrease in grade from 2.67
g/t gold in the December 2019
inferred mineral resource estimate (see the Company's news release
dated February 13, 2020 for details
regarding the Company's December 2019
inferred mineral resource estimate).
The increase in inferred mineral resources was mainly due
to substantial new inferred mineral resources being estimated at
underground depths on the Canadian Malartic mine property in the
East Gouldie Zone and at Santa
Gertrudis, partially offset by the conversion of inferred
mineral resources to indicated mineral resources at Kittila, Amaruq
and Goldex, and the rise of the cut-off grade at
Meliadine.
At East Gouldie, intensive exploration drilling during
2020 led to an increase of 1.8 million ounces of gold in inferred
mineral resources to 3.2 million ounces of gold (31.5 million
tonnes grading 3.17 g/t gold) (reflecting Agnico Eagle's 50%
interest).
At the Santa Gertrudis
project, inferred mineral resources have increased 39% (457,000
ounces of gold) mainly due to exploration drilling at the Amelia
underground deposit. Inferred mineral resources at
Santa Gertrudis now total 1.6
million ounces of gold (27.7 million tonnes grading 1.83 g/t
gold). These mineral resources are comprised of 879,000
ounces of gold (7.9 million tonnes grading 3,43 g/t gold) in
underground inferred mineral resources and 750,000 million ounces
of gold (19.7 million tonnes grading 1.18 g/t gold) in open-pit
inferred mineral resources.
At the LaRonde Complex, inferred mineral resources at LZ5
have increased by 129% (788,000 ounces gold) due to several
factors. Approximately 600,000 ounces of gold were added due
to the Ellison deposit now being reported with LZ5 and
approximately 145,000 ounces of gold were added from historical
Zone 3 compilation. At LZ5, inferred mineral resources now
total 1.4 million ounces of gold (15.1 million tonnes grading 2.88
g/t gold).
At the Meliadine mine, the revision of the cut-off grade
combined with less exploration results due to changes in drilling
priorities and delays related to COVID-19 constraints resulted in a
reduction of inferred mineral resources by 334,000 ounces of
gold. Despite these factors, the total inferred mineral
resource at Meliadine remains one of the Company's largest, and the
highest grade inferred mineral resource, with 2.3 million ounces of
gold (12.3 million tonnes grading 5.82 g/t gold). These
mineral resources are comprised of 2.2 million ounces of gold (11.5
million tonnes grading 5.94 g/t gold) in underground inferred
mineral resources and 111,000 ounces of gold (816,000 tonnes
grading 4.23 g/t gold) in open-pit inferred mineral
resources.
At Cubiro at the Pinos
Altos mine, inferred mineral resources decreased by 113,000
ounces of gold as a result of successful conversion and the use of
a potentially mineable shape as set out in the CIM
Guidelines.
The distribution of mineral resources by property is set
out in the following table. The Creston Mascota deposit has
been depleted due to mining and the Ellison deposit is now being
reported with LZ5.
The year-end 2020 mineral resource estimate excludes
any mineral resources at Hope Bay.
For a detailed discussion of mineral reserves and mineral
resources see "Detailed Mineral Reserve and Mineral Resource Data
(as at December 31,
2020)".
December 31, 2020 Mineral
Resources*
|
|
|
|
|
|
Measured & Indicated
|
|
Inferred Mineral
|
(000 oz gold)
|
|
(000 oz gold)
|
Northern Business
|
|
|
|
LaRonde
|
560
|
|
931
|
LaRonde Zone 5 incl.
Ellison
|
776
|
|
1,399
|
LaRonde Complex
|
1,336
|
|
2,330
|
Canadian Malartic
(50%)
|
105
|
|
92
|
Odyssey
(50%)
|
61
|
|
913
|
East Malartic
(50%)
|
368
|
|
2,669
|
East Gouldie
(50%)
|
—
|
|
3,209
|
Goldex
|
1,683
|
|
1,191
|
Akasaba
West
|
98
|
|
—
|
Zulapa
|
—
|
|
39
|
Meadowbank
|
90
|
|
—
|
Amaruq
|
1,474
|
|
1,273
|
Meadowbank Complex (incl.
Amaruq)
|
1,564
|
|
1,274
|
Meliadine
|
2,129
|
|
2,297
|
Hammond
Reef
|
2,298
|
|
0
|
Upper Beaver
(Kirkland Lake)
|
403
|
|
1,416
|
Amalgamated Kirkland
(Kirkland Lake)
|
265
|
|
406
|
Anoki/McBean
(Kirkland Lake)
|
320
|
|
382
|
Upper Canada
(Kirkland Lake)
|
722
|
|
1,863
|
Kittila
|
1,849
|
|
1,454
|
Kuotko
|
—
|
|
29
|
Kylmäkangas
|
—
|
|
250
|
Barsele
(55%)
|
176
|
|
1,005
|
Subtotal Northern Business
|
13,380
|
|
20,819
|
|
|
|
|
Southern Business
|
|
|
|
Pinos
Altos
|
882
|
|
203
|
La India
|
305
|
|
7
|
Tarachi
|
294
|
|
68
|
Chipriona
|
44
|
|
278
|
El Barqueno
Gold
|
331
|
|
351
|
Santa
Gertrudis
|
111
|
|
1,625
|
Subtotal Southern Business
|
1,966
|
|
2,532
|
Total Mineral Resources
|
15,346
|
|
23,351
|
|
|
|
|
*Ownership of
mines and projects is 100% unless otherwise indicated. Where Agnico
Eagle's interest is less than 100%, the stated mineral resources
reflect the Company's interest.
|
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and 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 second
half 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 – Strong Performance Continued at the
West mine in the Fourth Quarter of 2020; Production Tonnage
Continues to Improve at LZ5
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 mining. The
LZ5 mine achieved commercial production in June 2018.
LaRonde Complex – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
739
|
|
732
|
Tonnes of ore milled
per day
|
8,033
|
|
7,957
|
Gold grade
(g/t)
|
4.69
|
|
5.06
|
Gold production
(ounces)
|
105,729
|
|
112,704
|
Production costs per
tonne (C$)
|
$
|
102
|
|
$
|
113
|
Minesite costs per
tonne (C$)
|
$
|
106
|
|
$
|
109
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
539
|
|
$
|
557
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
433
|
|
$
|
470
|
Production costs per tonne in the fourth quarter of 2020
decreased when compared to the prior-year period primarily due to
lower underground production and service costs per tonne as a
higher proportion of tonnes mined and milled were sourced from the
lower cost LZ5 mine, partially offset by the timing of unsold
concentrate inventory. Production costs per ounce in the
fourth quarter 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 tonne7 in the fourth quarter
of 2020 decreased when compared to the prior-year period primarily
from lower underground production costs as a higher proportion of
mined and processed ore were sourced from the LZ5 mine. Total
cash costs per ounce in the fourth quarter of 2020 decreased when
compared to the prior-year period due to the reasons described
above and higher by-product revenues due to higher average realized
by-product metal prices.
Gold production in the fourth quarter of 2020 decreased
when compared to the prior-year period primarily as a result of a
higher proportion of milled ore being sourced from the lower-grade
LZ5 mine as per the planned mining sequence.
LaRonde Complex – Operating
Statistics
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
2,674
|
|
2,927
|
Tonnes of ore milled
per day
|
7,306
|
|
8,019
|
Gold grade
(g/t)
|
4.29
|
|
4.51
|
Gold production
(ounces)
|
349,913
|
|
402,984
|
Production costs per
tonne (C$)
|
$
|
109
|
|
$
|
116
|
Minesite costs per
tonne (C$)
|
$
|
105
|
|
$
|
108
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
622
|
|
$
|
636
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
517
|
|
$
|
503
|
Production costs per tonne in the full year 2020 decreased
when compared to the prior-year primarily due to lower underground
production costs as a higher proportion of mined and processed
tonnes were sourced from the LZ5 mine, partially offset by lower
throughput levels mostly related to the government mandated
suspension of operations in the period. Production costs per
ounce in the full year 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 full year 2020 decreased
when compared to the prior-year primarily for the reasons described
above. Total cash costs per ounce in the full year 2020
increased when compared to the prior-year period due to lower gold
production and lower by-product revenues from lower silver and zinc
production as per the planned mining sequence, partially offset by
lower underground production and service costs per
tonne.
___________________
|
7 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
|
Gold production in the full year 2020 decreased when
compared to the prior-year 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
second half of 2020.
LaRonde Mine
Mining activities in the West mine area progressed ahead
of schedule in the fourth quarter of 2020. The West mine area
contributed approximately 19% of the tonnage mined at the LaRonde
Complex, operating at an average rate of 1,421 tpd, exceeding the
forecast of 1,150 tpd. The ore extracted from this area
returned higher grade than anticipated, leading the strong gold
production performance from the Complex. In 2021, the West
mine area is expected to contribute approximately 15% of the ore
mined and 21% of the gold ounces produced at the LaRonde
Complex.
The good performance at the LaRonde mine is partially a
result of the automation strategy that has helped to improve
productivity and allow continuation of mucking activities during
non-entry protocols related to seismicity. In 2020, 13% of
tonnes mucked from stopes at the LaRonde mine were done in
automation mode. In December
2020, a record 39% of the production mucking at the LaRonde
mine was done from surface, which included 100% of the production
mucking from the West mine area. At LZ5, in 2020, 14% of
tonnes mucked and hauled to surface were accomplished in automated
mode with operators based on surface. The target for 2021 is
to muck over 17% of the total tonnage for the LaRonde Complex from
surface. Work is also ongoing to perform production drilling
using automation.
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 was completed
in December 2020 and it is expected
to be commissioned in the first quarter of 2021.
At Zone LR11-3 (which is at the past producing Bousquet 2
mine), development from level 146 of the LaRonde mine continues on
schedule and dewatering of the previously mined area is
ongoing. The zone is expected to be reached in the second
half of 2021 and production activities are expected to begin in
2022.
In order to continue tailings deposition through its life
of mine, the LaRonde Complex is constructing drystack tailings
facilities which are expected to be operational by the end of
2022. Drystacking will help limit the footprint of the new
tailings facility and improve the closure of the main tailings
ponds.
In the second quarter of 2021, the LaRonde mill has
planned a ten day maintenance shutdown. The maintenance
shutdown was originally scheduled for 2020.
As part of ongoing stakeholder engagement, the Company is
in discussions with First Nations groups concerning a collaboration
agreement.
LZ5 Mine
The successful implementation of automated mining
techniques at the LZ5 mine has resulted in a consistent improvement
in productivity. In 2020, the target of 15% of the tonnage
mucked and hauled remotely to surface was achieved. In the
fourth quarter of 2020, the LZ5 production rate was 2,987 tpd,
essentially meeting the targeted rate of 3,000 tpd. For 2021,
it is expected that 17% of the tonnage will be mucked and hauled
remotely to surface and the production rate is expected to be
sustained at approximately 3,000 tpd. The LZ5 automation team
will continue optimizing the automated mining
techniques.
Given the success in mining the upper portions of the LZ5
deposit (from surface to 330 metres), the extension of mining
activities to a depth of 650 metres has been approved, resulting in
the addition of 272,000 ounces of gold to the LZ5 mineral reserves
at year end 2020. With this addition, the LZ5 mine is
expected to maintain a production rate of approximately 3,000 tpd
through 2029. The Company is also evaluating the potential to
mine portions of the neighbouring Ellison property from the LZ5
underground infrastructure.
Developing infrastructure to evaluate the potential of
under-explored areas west of LaRonde 20N Zone
To examine and drill test the potential of under-explored
areas located 1 to 3 kilometres from surface below LZ5 and west of
the 20N Zone, three exploration drifts are planned to be developed
in 2021. At a depth of 1.1 kilometres below surface, the
rehabilitation of the exploration trackdrift on Level 9 is on-going
and is expected to be ready for exploration drilling in the fourth
quarter of 2021. At a depth of 2.2 kilometres below surface,
the trackdrift on level 215 that extends westward from the LaRonde
mine will be rehabilitated and extended over the next two
years. At a depth of 2.8 kilometres below surface, the
development of exploration drift 290w is underway.
Canadian Malartic Mine – Record mill tonnage in the
fourth quarter 2020; Odyssey underground project approved for
construction; Odyssey shaft construction to begin in the second
quarter of 2021
In June 2014, Agnico Eagle
and Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation
(now Canadian Malartic Corporation)
and created the Partnership. The Partnership owns the
Canadian Malartic mine in northwestern Quebec which it operates 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
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
5,738
|
|
5,174
|
Tonnes of ore milled
per day (100%)
|
62,370
|
|
59,144
|
Gold grade
(g/t)
|
1.07
|
|
1.11
|
Gold production
(ounces)
|
86,371
|
|
81,905
|
Production costs per
tonne (C$)
|
$
|
26
|
|
$
|
27
|
Minesite costs per
tonne (C$)
|
$
|
27
|
|
$
|
26
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
668
|
|
$
|
668
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
656
|
|
$
|
630
|
Production costs per tonne in the fourth quarter of 2020
were essentially the same when compared to the prior-year period as
higher throughput mostly offset higher contractor costs for
haulage. Production costs per ounce in the fourth quarter of
2020 were the same when compared to the prior-year period due to
the reasons described above.
Minesite costs per tonne in the fourth quarter of 2020
were slightly higher when compared to the prior-year period due to
higher contractor costs for haulage and increased royalty payments
resulting from higher average realized gold prices, partially
offset by increased throughput levels. Total cash costs per
ounce in the fourth quarter of 2020 increased when compared to the
prior-year period primarily due to the reasons described above and
to the strengthening of the Canadian dollar.
Gold production in the fourth quarter of 2020 increased
when compared to the prior-year period primarily due to higher
throughput levels, partially offset by lower grades. The mill
achieved a record quarter for milled tonnage at 5,736,659 tonnes,
or 62,355 tpd (100% basis), as a result of its continuous
improvement efforts. The limited footprint at the bottom of
the Canadian Malartic pit, geotechnical challenges and the higher
density of historical openings reduced the mine production
rate. As a result, lower grade ore from the Malartic pit that
was expected to be stockpiled was processed in the mill.
Canadian Malartic Mine – Operating
Statistics*
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
19,338
|
|
20,782
|
Tonnes of ore milled
per day** (100%)
|
56,832
|
|
57,669
|
Gold grade
(g/t)
|
0.97
|
|
1.12
|
Gold production
(ounces)
|
265,387
|
|
331,459
|
Production costs per
tonne (C$)
|
$
|
27
|
|
$
|
26
|
Minesite costs per
tonne (C$)
|
$
|
27
|
|
$
|
26
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
736
|
|
$
|
628
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
723
|
|
$
|
606
|
|
*In the full year
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 340 days
in the full year of 2020.
|
Production costs per tonne in the full year 2020 were
higher when compared to the prior-year due to lower throughput
levels due to the government mandated suspension of milling
operations from March 23, 2020 to
April 17, 2020 and lower productivity
in the Malartic pit. Production costs per ounce in the full
year 2020 increased when compared to the prior year due to the
reasons described above and lower gold production.
Minesite costs per tonne in the full year 2020 were higher
when compared to the prior-year due to lower throughput levels due
to the government mandated suspension of milling operations from
March 23, 2020 to April 17, 2020 and lower productivity in the
Malartic pit. Total cash costs per ounce in the full year
2020 increased compared to the prior-year period due to the reasons
described above and lower gold production.
Gold production in the full year 2020 decreased when
compared to the prior-year primarily as a result of lower grades
and lower throughput in the first nine months of the year. 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
government mandated suspension of milling operations from
March 23, 2020 to April 17, 2020. Pre-commercial production
in the full year 2020 from the Barnat deposit was 18,930 ounces of
gold. Commercial production was declared on September 30, 2020.
The Canadian Malartic operation achieved its best
performance in health and safety since the opening of the
mine. Nineteen supervisors were recognized by the Quebec
Mining Association for their team's performance in health and
safety.
At the Barnat pit, overburden stripping progressed well
and is expected to be completed in the first quarter of 2021.
The topographic drilling is 60% complete and is expected to be
finished by the third quarter of 2021. Pit design
optimization was completed during the fourth quarter of 2020 and
the ramp will be located on the south wall where better rock
conditions exist. The change in design adds approximately
150,000 ounces to the 2020 year end mineral reserves (50% basis)
while requiring approximately 10 million tonnes of additional waste
removal.
At the Malartic pit, the mining sequence offers less
flexibility as the reduced footprint with higher density of
underground openings and the geotechnical challenges increase the
demand for remote activities and create variability in
performance. In the fourth quarter of 2020, the pit
production was above forecast due to good weather conditions and
the absence of any significant geotechnical issues. For 2021,
the Malartic pit remains the main source of ore, expected to
provide over 75% of the processed ore in first quarter of 2021 but
decreasing during the course of 2021. The Barnat pit will
progressively become the main source of ore, providing some
production flexibility over the course of the year.
In the fourth quarter of 2020, the Canadian Malartic mill
successfully completed the fourth shutdown of the year.
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 known as 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 completed during the fourth quarter of 2020. Ramp
development started on December 2,
2020, and 103 linear metres were developed in
December.
At Odyssey, drilling significantly expanded the inferred
mineral resources which supported the approval of the Odyssey
project by the Partnership. A summary of the results of the
technical study at the Odyssey project is set out above under
"Odyssey Project – Drilling Significantly Expands Inferred Mineral
Resources at East Gouldie Supporting Approval of Underground Mine
Development".
Goldex – Strong Mill Throughput Drives Record Quarterly
Gold Production; Ramp Up of South Zone to Continue in
2021
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
756
|
|
684
|
Tonnes of ore milled
per day
|
8,217
|
|
7,435
|
Gold grade
(g/t)
|
1.79
|
|
1.74
|
Gold production
(ounces)
|
39,507
|
|
34,963
|
Production costs per
tonne (C$)
|
$
|
42
|
|
$
|
44
|
Minesite costs per
tonne (C$)
|
$
|
42
|
|
$
|
43
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
624
|
|
$
|
656
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
591
|
|
$
|
640
|
Production costs per tonne in the fourth quarter of 2020
decreased when compared to the prior-year period primarily as a
result of higher throughput levels. Production costs per
ounce in the fourth quarter of 2020 decreased when compared to the
prior-year period primarily due to the reason described above and
higher gold production.
Minesite costs per tonne in the fourth quarter of 2020
were slightly lower when compared to the prior-year period
primarily as a result of higher throughput levels. Total cash
costs per ounce in the fourth quarter of 2020 decreased when
compared to the prior-year period due to the reason described above
and higher gold production.
Gold production in the fourth quarter of 2020 increased
when compared to the prior-year period primarily due to higher mill
throughput levels and higher grade related to the mining
sequence. Goldex achieved record quarterly gold production of
39,507 ounces.
Goldex Mine – Operating
Statistics
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
2,655
|
|
2,785
|
Tonnes of ore milled
per day
|
7,254
|
|
7,630
|
Gold grade
(g/t)
|
1.64
|
|
1.71
|
Gold production
(ounces)
|
127,540
|
|
140,884
|
Production costs per
tonne (C$)
|
$
|
41
|
|
$
|
39
|
Minesite costs per
tonne (C$)
|
$
|
41
|
|
$
|
39
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
648
|
|
$
|
586
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
634
|
|
$
|
584
|
Production costs per tonne in the full year 2020 increased
when compared to the prior-year due to lower throughput levels as a
result of the government mandated 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 full year 2020 increased when compared to
the prior year primarily due to the reasons described above and
lower gold production.
Minesite costs per tonne in the full year 2020 increased
when compared to the prior-year due to the reasons described
above. Total cash costs per ounce in the full year 2020
increased when compared to the prior year due to the reasons
described above and lower gold production.
Gold production in the full year 2020 decreased when
compared to the prior-year primarily due to the government mandated
suspension of operations 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 delivered strong performance in the fourth
quarter of 2020 with record ore production since its restart in
2013. Daily mill throughput averaged in excess of 8,000 tpd
and higher grade stopes were mined as per plan. Following
seismic activities in December 2020,
improvements were made to ground support installation and
protocols.
The Rail-Veyor operating hours increased due to the
availability of the new maintenance bay and resulted in an average
hauling rate of 6,879 tpd in the fourth quarter of 2020, close to
its 7,000 tpd design capacity. The good performance of the
Rail-Veyor was a determining factor in the strong quarterly
production from Deep 1 and throughput at the mill. In the
fourth quarter of 2020, the Rail-Veyor system reached a milestone
with 5 million tonnes hauled since its commissioning.
The development pace of the South Zone remained high in
the fourth quarter of 2020 as the Company prioritized lateral
development over stoping. This resulted in a lower mining
rate at approximately 423 tpd compared to the forecast of 550
tpd. The majority of the development in ore has now been
completed, and production levels are expected to increase from the
South zone in the first quarter of 2021. The Company
continues to evaluate the potential for the South Zone to provide
additional incremental ore feed and grade flexibility to the Goldex
mill.
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), together with the recently acquired Hope
Bay mine and other exploration projects, Nunavut has the potential to be a strategic
operating platform for the Company with the ability to generate
strong gold production and cash flows over several
decades.
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. However, as the distribution of
COVID-19 vaccines has begun in local Nunavut communities, the Company
is preparing to reintegrate the Nunavut based workforce to its operations over
the course of 2021. 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
Nunavummuiut employees on a voluntary basis and without
compromising the safety of them or their communities.
The Company has instituted a number of 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
- Testing facilities set-up at, the Meliadine and
Meadowbank sites as well as at the Val
d'Or and Mirabel
airports
- All employees and contractors are tested for COVID-19
prior to boarding the planes and boarding is allowed when all
passengers are confirmed negative. In addition, both sites have
implemented re-testing of employees five days into their rotation
to detect people that were exposed to the virus but were in
incubation at time of arrival
Meadowbank Complex – Record Open Pit Production in the
Fourth Quarter of 2020; IVR Deposit Declares Commercial Production
at Year-End 2020; Amaruq Underground Approved for Mine
Development
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 at the site were completed by 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 processing 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. In addition, the mining
operation has now fully transitioned from the Meadowbank deposit to
the Amaruq satellite deposit, which has affected the cost
structure. Finally the 2019 full year period includes 35,281
gold ounces of pre-commercial production at Amaruq. All these
factors result in comparison to the prior full year periods not
being meaningful.
Meadowbank Complex – Operating
Statistics*
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
684
|
|
709
|
Tonnes of ore milled
per day**
|
8,755
|
|
7,707
|
Gold grade
(g/t)
|
2.90
|
|
2.95
|
Gold production
(ounces)
|
57,739
|
|
61,660
|
Production costs per
tonne (C$)
|
$
|
145
|
|
$
|
143
|
Minesite costs per
tonne (C$)
|
$
|
132
|
|
$
|
162
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,297
|
|
$
|
1,243
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,142
|
|
$
|
1,405
|
|
*In the fourth
quarter of 2020, Amaruq had 10,995 ounces of pre-commercial gold
production from the IVR pit.
|
**Excluding tonnes milled on a pre-commercial
production basis, the mill operated for an equivalent of 78 days in
the fourth quarter of 2020.
|
Production costs per tonne in the fourth quarter of 2020
increased when compared to the prior-year period primarily due to
lower mill throughput. Production costs per ounce in the
fourth quarter of 2020 increased when compared to the prior-year
period due to reasons described above and the lower gold
production.
Minesite costs per tonne in the fourth quarter of 2020
decreased when compared to the prior-year period primarily due to
lower rehandling costs. Total cash costs per ounce in the
fourth quarter of 2020 decreased when compared to the prior-year
period due to the reasons described above, partially offset by
lower gold production.
In the fourth quarter of 2020, gold production, excluding
pre-commercial ounces, decreased when compared to the prior-year
period. Including pre-commercial ounces, gold production was
higher when compared to the prior-year period due higher throughput
levels related a strong performance at the mine and the
mill.
Meadowbank Complex – Operating
Statistics*
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
2,482
|
|
2,381
|
Tonnes of ore milled
per day**
|
7,113
|
|
7,731
|
Gold grade
(g/t)
|
2.71
|
|
2.23
|
Gold production
(ounces)
|
198,418
|
|
158,208
|
Production costs per
tonne (C$)
|
$
|
154
|
|
$
|
101
|
Minesite costs per
tonne (C$)
|
$
|
148
|
|
$
|
103
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,436
|
|
$
|
1,143
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,404
|
|
$
|
1,152
|
|
*Operating
statistics for 2020 relate to production from the Amaruq satellite
deposit while the operating statistics for 2019 relate to
production from the Meadowbank mine in the first three quarters and
the Amaruq satellite deposit in the fourth quarter. In 2020,
Amaruq had 10,995 ounces of pre-commercial gold production.
In 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 308 days
in 2019 and 349 days in 2020.
|
Production costs per tonne in the full year 2020 increased
when compared to the prior-year 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 due to COVID-19 related issues as described above.
Production costs per ounce in the full year 2020 increased when
compared to the prior-year due to the reasons described above,
partially offset by higher gold production.
Minesite costs per tonne in the full year 2020 increased
when compared to the prior-year primarily due to the reasons
described above. Total cash costs per ounce in the full year
2020 increased when compared to the prior-year due to the reasons
described above, partially offset by higher gold
production.
In the full year 2020, gold production, excluding
pre-commercial ounces, increased when compared to the prior
year. Commercial production tonnes were higher in 2020
compared to the prior year as a significant portion of the ore
processed in 2019 was pre-commercial. Gold production,
including pre-commercial production, was higher primarily due to
higher gold grades as the Amaruq pit deepens, partially offset by
lower throughput levels related to the reduction of activities in
the second quarter of 2020 as described above.
Fourth Quarter 2020 Activities
In the fourth quarter of 2020, the open pit continued to
show consistent improvement and achieved record quarterly
production of approximately 3.8 million tonnes mined per
month. A strong performance was also achieved in production
drilling in both the IVR and Whale tail pits, which resulted in a
significant increase in total broken inventory. The good
availability of the production fleet (due to improved maintenance
in 2020), the optimization of the equipment dispatch, the
commissioning of two new 777D haul trucks and two new 650 Sandvik
drills and the increased face availability in the pit were
determining factors for the strong operational performance.
Mining activities are expected to remain at similar levels in
2021.
Improving the reliability of the long-haul truck ("LHT")
fleet remains a focus. Good road conditions, reliability
improvements, the addition of four new LHT's and a favourable
caribou migration this fall allowed for effective utilization of
the LHT fleet in the fourth quarter of 2020. A record
amount of material hauled was achieved in November, averaging over
11,200 tpd.
A contractor fleet of three 100-tonne trucks and a
dedicated loader remained active in the fourth quarter of 2020 to
accelerate the development of the IVR pit, and provide additional
production flexibility in 2020 and 2021. In the fourth
quarter of 2020, Amaruq had 10,995 ounces of pre-commercial gold
production from the IVR pit. Commercial production at the IVR
pit was achieved on December 31,
2020.
In the fourth quarter of 2020, the plant was shutdown for
five days to replace SAG and ball mill liners as per
schedule. Following the shutdown, the plant maintained the
predicted throughput rate during the new liner break-in period and
achieved a higher throughput rate than forecast for the remainder
of the period.
In the fourth quarter of 2020, ramp development continued
at the Amaruq underground project and the project has been approved
for development. A summary of the results of the internal
technical evaluation at the Amaruq underground project is set out
above under "Amaruq Underground Approved for Mine Development;
First Production Expected in 2022".
Due to variability in the strip ratio and ore grades,
production and costs levels are expected to fluctuate over the six
year life of mine. Average annual gold production at Amaruq,
including the underground project, is currently forecast to be
approximately 455,000 ounces at average total cash costs per ounce
of $895.
Meliadine Mine – Phase 2 Expansion Proceeding as
planned; commercial production expected at Tiriganiaq open pit in
the third quarter of 2021
Located near Rankin Inlet,
Nunavut, Canada, the Meliadine project was acquired in
July 2010 and is Agnico Eagle's
largest gold deposit in terms of mineral resources. The
Company owns 100% of the 111,358-hectare property. In
February 2017, the Company's Board of
Directors approved the construction of the Meliadine project and
commercial production was declared on May
14, 2019.
In response to the COVID-19 pandemic, activity levels at
Meliadine were reduced from the end of March to early June.
The mill was gradually ramped-up through April and May to achieve
more normal operating levels in June. The reduction in
activities for most of the second quarter of 2020 caused a
substantial reduction in production and a corresponding increase in
unit production costs. As the Meliadine mine achieved
commercial production on May 14,
2019, the full year of 2019 does not represent a comparable
period.
Meliadine Mine – Operating
Statistics*
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
334
|
|
326
|
Tonnes of ore milled
per day**
|
4,023
|
|
3,543
|
Gold grade
(g/t)
|
8.13
|
|
7.99
|
Gold production
(ounces)
|
88,273
|
|
81,607
|
Production costs per
tonne (C$)
|
$
|
248
|
|
$
|
241
|
Minesite costs per
tonne (C$)
|
$
|
234
|
|
$
|
237
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
716
|
|
$
|
731
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
652
|
|
$
|
712
|
*In the fourth
quarter of 2020, the Tiriganiaq open pit had 4,509 ounces of
pre-commercial gold production.
|
|
**Excluding tonnes milled on a pre-commercial
production basis, the mill operated for an equivalent of 83 days
for the three months ended December 31, 2020
|
Production costs per tonne in the fourth quarter of 2020
increased when compared to the prior-year period due to timing of
inventory, partially offset by higher throughput. Production
costs per ounce in the fourth quarter of 2020 decreased when
compared to the prior-year period due to higher gold production,
partially offset by higher production costs per tonne as described
above.
Minesite costs per tonne in the fourth quarter of 2020
decreased when compared to the prior-year period primarily due to
higher throughput. Total cash costs per ounce in the fourth
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 fourth quarter of 2020 increased
when compared to the prior-year period primarily due to higher
throughput as Meliadine delivered good performance over the quarter
with processing rate at over 4,000 tpd. In the fourth quarter
of 2019, the site was still ramping-up mining and processing
activities.
Meliadine Mine – Operating
Statistics*
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
1,346
|
|
773
|
Tonnes of ore milled
per day**
|
3,813
|
|
3,346
|
Gold grade
(g/t)
|
7.34
|
|
7.60
|
Gold production
(ounces)
|
312,398
|
|
191,113
|
Production costs per
tonne (C$)
|
$
|
244
|
|
$
|
244
|
Minesite costs per
tonne (C$)
|
$
|
240
|
|
$
|
246
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
786
|
|
$
|
748
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
774
|
|
$
|
748
|
|
*In 2020, the
Tiriganiaq open pit had 6,491 ounces of pre-commercial gold
production. In 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 353 days
in 2020 and 231 days in 2019.
|
Production costs per tonne in the full year 2020 were
C$244. Production costs per
ounce in the full year 2020 were $786. Minesite costs per tonne in the full
year 2020 were C$240. Total
cash costs per ounce in the full year 2020 were $774. Gold production in the full year 2020
was 312,398 ounces.
At the Tiriganiaq open pit, overburden stripping has been
accelerated using a contractor to provide additional mining
flexibility for both tonnes and grade in 2021. The total
pre-commercial gold production at Tiriganiaq was 6,491 ounces in
2020 and is expected to be approximately 29,000 ounces in
2021.
In the fourth quarter of 2020, underground mining
performance continued to improve with an increase tonnage of the
ore mucked from underground, peaking in December 2020 at 3,744 tpd. Stope mining in
the recently dewatered and recommissioned higher-grade RP3 mining horizon continued at a good rate and
without any increase to the ground water inflows. This new
horizon is expected to provide additional mining flexibility for
both tonnes and grade in 2021.
In the fourth quarter of 2020, the mill maintained average
throughput above 4,000 tpd, slightly below forecast primarily due
to filter press availability and preventive maintenance on the CIL
tanks. Milling rates are expected to average approximately
4,600 tpd in 2021. The Phase 2 expansion remains on track
with mill throughput expected to increase from an average of
approximately 4,600 tpd in 2021 to 6,000 tpd in 2025.
Waterline Activities
Permitting activities in connection with the saline water
discharge line are continuing. The technical meeting,
community roundtable with the key communities of interest and
pre-hearing conference that were all scheduled for late November,
2020 were postponed by NIRB due to COVID-19. The technical
meeting was rescheduled and completed on January 11-12, 2021. The community
roundtable with the key communities of interest and the pre-hearing
conference are expected to be conducted on February 11 and 12, 2021. The required
public hearing has not been scheduled by NIRB, but it is expected
to be conducted at the end of April. Information with respect
to the waterline permitting activities is available on the NIRB
Public Registry.
Discharge to Sea Via Trucking
On January 20, 2021, the
Nunavut Planning Commission informed the Company that the saline
water discharge permit of 1,600 cubic metres per day (via truck)
from the Meliadine underground operation to Melvin Bay in
Rankin Inlet can continue for the
2021 discharge season.
Meliadine Water License Amendment
Permitting activities in connection with the Water License
Amendment are continuing. The application includes a
long-term increase of total dissolved solids plus some general
activities. This application also includes an alternative to
divert surface contact water to the waterline to provide additional
flexibility to the operation. The technical meeting was
completed on November 30 - December 1,
2020 and the community information session and pre-hearing
conference was completed on January
19, 2021. The public hearing with the Nunavut Water
Board is now scheduled for April 1-2,
2021. The Company expects to receive the water license
amendment approval in May or June
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.
Conversion Drilling at the Discovery Satellite Deposit
Adds to Mineral Reserves
The Meliadine property includes seven gold deposits, six
of which are part of the current mine plan. Tiriganiaq is the
largest of the deposits with a strike length of approximately 3.0
kilometres at surface and a known depth of 812 metres.
At December 31, 2020,
Meliadine had 4.0 million ounces of gold in proven and probable
mineral reserves (21.3 million tonnes grading 5.89 g/t gold) mostly
at underground depth, as well as 2.1 million ounces of gold in
measured and indicated mineral resources (18.8 million tonnes
grading 3.53 g/t gold) and 2.3 million ounces of gold in inferred
mineral resources (12.3 million tonnes grading 5.82 g/t
gold).
Detailed exploration drill results at Meliadine were last
reported in the Company's news release dated October 23, 2019, and a progress report on
mine-site and regional exploration was provided in the Company's
news release dated July 29,
2020.
Exploration during 2020 at the Meliadine mine site and
surrounding areas on the property focused on confirming and
extending mineralization at depth in the Tiriganiaq deposit at the
mine; confirming inferred mineral resources at shallower depths in
the Wesmeg deposit at the mine; and conversion, geotechnical and
exploration drilling at the satellite Discovery deposit, located
approximately 17 kilometres east-southeast of Tiriganiaq, and last
drilled in 2014.
During the fourth quarter of 2020, the Company completed
4,800 metres of drilling at Tiriganiaq and 7,000 metres at Wesmeg,
from both surface and underground, in exploration and conversion
drilling campaigns.
Drilling at Discovery was completed during the first three
quarters of 2020, and selected recent exploration drill intercepts
are set out in the table below. The pierce points are shown
on the Meliadine Mine – Discovery Composite Longitudinal Section
and the drill collar coordinates are set out in a table in the
Appendix. All intercepts reported for the Meliadine mine show
uncapped and capped grades over estimated true widths, based on a
preliminary geological interpretation that is being updated as new
information becomes available with further drilling.
Selected recent exploration drill results from the
Discovery deposit at Meliadine
Drill hole
|
Lode
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated true w
idth (metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped*)
|
M20-2970
|
5210
|
282.9
|
290.5
|
253
|
6.4
|
7.7
|
7.7
|
M20-2971
|
5220
|
354.6
|
357.6
|
314
|
2.8
|
11.3
|
11.3
|
M20-2972
|
5210
|
378.3
|
390.2
|
359
|
10.3
|
5.2
|
5.2
|
M20-2977
|
5210
|
271.8
|
276.2
|
227
|
4.2
|
4.1
|
4.1
|
M20-2978
|
5210
|
283.8
|
292.0
|
258
|
7.3
|
13.7
|
13.7
|
M20-2982
|
5210
|
334.5
|
338.0
|
308
|
3.0
|
7.3
|
7.3
|
M20-2983
|
5210
|
334.7
|
338.8
|
308
|
3.6
|
5.9
|
5.9
|
M20-2984
|
5210
|
493.0
|
499.5
|
458
|
5.8
|
4.0
|
4.0
|
M20-2987
|
5210
|
262.5
|
266.1
|
238
|
3.2
|
13.1
|
13.1
|
M20-3001
|
5240
|
38.9
|
44.0
|
45
|
5.1
|
9.1
|
9.1
|
M20-3105
|
5240
|
483.2
|
487.1
|
433
|
3.9
|
9.7
|
9.7
|
* Holes at Discovery
use a capping factor of 70 g/t gold.
|
[Meliadine Mine – Discovery Plan Map & Composite
Longitudinal Section]
At Discovery in 2020, approximately 11,150 metres of
drilling were completed, including 610 metres for pre-delineation
on the near-surface portion of the deposit and 6,464 metres on
positive conversion at the bottom of the current indicated mineral
resource envelope. Additional drilling included 2,090 metres
for geotechnical purposes for the planned underground portion of
the deposit and 2,000 metres of exploration drilling to test the
continuity of mineralization at depth and aimed to add to mineral
resources.
The positive drilling results have allowed the Company to
declare an initial probable mineral reserve at Discovery at
December 31, 2020, of 363,000 ounces
of gold (2.1 million tonnes grading 5.41 g/t gold) at underground
depths, including mineralization accessible by crown pillar mining
methods.
Conversion drilling within the deepest, eastern portion of
the deposit returned highlights such as hole M20-2970, which
intersected 7.7 g/t gold over 6.4 metres at 253 metres depth; and
hole M20-2978, drilled at the eastern part of the deposit into lode
5210, which intersected 13.7 g/t gold over 7.3 metres at 258 metres
depth. These holes confirmed the high gold grades and
thicknesses of this portion of the deposit and filled a previous
gap in the mineral resources.
Deeper in the same area, holes were drilled at the bottom
limits of the main ore shoot of the mineral resource that plunges
to the east. Highlights include hole M20-2971, which
intersected lode 5220 and returned 11.3 g/t gold over 2.8 metres at
314 metres depth; hole M20-2972, which intersected lode 5210, and
returned 5.2 g/t gold over 10.3 metres at 359 metres depth.
These holes have extended the deposit's mineral resource
down-plunge at depth.
Highlights from holes drilled even deeper down-plunge
included hole M20-3105, which intersected lode 5240 and returned
9.7 g/t gold over 3.9 metres at 433 metres depth; and hole
M20-2984, which confirmed mineral resources in lode 5210
down-plunge of the main ore shoot, and returned 4.0 g/t gold over
5.8 metres at 458 metres depth.
Conversion drilling at shallower depths in a parallel ore
shoot west of the principal mineral resource area also provided
positive results, with hole M20-2987 intersecting lode 5210 and
returning 13.1 g/t gold over 3.2 metres at 238 metres depth, and
demonstrating the potential to extend mineral resources deeper
along plunge in this area.
The Company believes the Discovery deposit could be
developed into a satellite mining operation to provide ore feed to
the existing mill facility at the Meliadine mine, and expects to
complete an internal technical evaluation of Discovery in early
2021.
The Discovery deposit remains open to the east at depth,
along a steep plunge corresponding to the main ore shoot.
Drilling at Discovery in 2021 will continue to test the deposit's
main plunge as well as the parallel ore shoot to the west at depth
to expand the mineral resources and to continue converting inferred
mineral resources to indicated 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 2020, the Kittila mine operated at normal levels
with new hygiene and safety protocols in place.
Kittila – Record Ore Production in 2020 Drives Record
Annual Gold Production; Mill Expansion Commissioned Ahead of
Schedule and Ramp Up to Design Capacity Ongoing
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
353
|
|
468
|
Tonnes of ore milled
per day
|
3,837
|
|
5,087
|
Gold grade
(g/t)
|
4.58
|
|
4.14
|
Gold production
(ounces)
|
45,056
|
|
55,345
|
Production costs per
tonne (EUR)
|
€
|
90
|
|
€
|
74
|
Minesite costs per
tonne (EUR)
|
€
|
100
|
|
€
|
79
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
830
|
|
$
|
694
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
908
|
|
$
|
756
|
Production costs per tonne in the fourth quarter of 2020
increased when compared to the prior-year period due to lower
throughput levels as the mill was shutdown most of October to
complete the planned 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
average realized gold prices. Production costs per ounce in
the fourth 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 fourth quarter of 2020
increased when compared to the prior-year period primarily due to
lower throughput levels as the mill was shut down most of October
to complete the planned 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
average realized gold prices. Total cash costs per ounce in
the fourth 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 fourth 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 mill was shutdown most of
October 2020 to complete the planned
mill expansion tie-in. The plant restarted on October 22, 2020 and successfully ramped up
production during the quarter.
Kittila Mine – Operating
Statistics
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore milled
(thousands of tonnes)
|
1,702
|
|
1,591
|
Tonnes of ore milled
per day
|
4,650
|
|
4,359
|
Gold grade
(g/t)
|
4.38
|
|
4.15
|
Gold production
(ounces)
|
208,125
|
|
186,101
|
Production costs per
tonne (EUR)
|
€
|
87
|
|
€
|
80
|
Minesite costs per
tonne (EUR)
|
€
|
86
|
|
€
|
76
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
816
|
|
$
|
766
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
805
|
|
$
|
736
|
Production costs per tonne in the full year 2020 increased
when compared to the prior-year primarily due to cost pressures in
contracted development and hauling, higher ground support
requirements, higher royalty payments related to higher average
realized gold prices and the timing of inventory, partially offset
by higher throughput levels. Production costs per ounce in
the full year 2020 increased when compared to the prior-year 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 full year 2020 increased
when compared to the prior year due to cost pressures in contracted
development and hauling, higher ground support requirements, and
higher royalty payments related to higher average realized gold
prices, partially offset by higher throughput levels. Total
cash costs per ounce in the full year 2020 increased when compared
to the prior year due to the reasons described above, partially
offset by higher gold production.
Gold production in the full year 2020 increased when
compared to the prior year as record ore production and higher
grades drove record annual gold production of 208,125 ounces in
2020. In 2019, a scheduled 58-day mill shutdown was carried
out in the second quarter to allow for full autoclave
relining.
The Kittila mine continued delivering strong performance
in the fourth quarter of 2020, with production above forecast by
approximately 6,000 tonnes and delivered a record full year ore
production of approximately 1.85 million tonnes. This
performance is driven by an improved fleet management and an
increased usage of automation. The mine has been testing
autonomous hauling trucks and tele-remote equipment and is
targeting to achieve 50% of production drilling and 15% of hauling
remotely in 2021. The mill has consistently increased
availability and the Company will be evaluating the implementation
of Advanced Process Control in 2021.
Contracted development negatively impacted unit costs in
2020. In December 2020, Kittila
terminated the contract for underground development and this
function will now be carried out by Company personnel. This
transfer of responsibilities is expected to reduce mining costs in
2021.
The mill expansion tie-in was completed from September 22, 2020 to October 22, 2020. The commissioning of the
expanded mill was completed ahead of schedule and the ramp-up
towards the design capacity of 2.0 million tonnes per annum is
on-going as per schedule and as per the new environmental
permit. Two strategically important environmental
construction projects to increase the mill production rate to 2.0
million tonnes per annum, the NP4 tailings pond and the discharge
waterline, were completed and commissioned in the fourth quarter of
2020. With the completion of these projects at Kittila
production flexibility has significantly improved for
2021.
The Kittila shaft project advanced in the fourth quarter
of 2020, though at a lower rate than forecast. The shaft
sinking project execution remains challenging due to travel
restrictions related to COVID-19. Local resources have been
added to the shaft sinking contractor team and commissioning is
expected to be completed in the first half of 2022.
The budget for the Kittila expansion project was updated
in the third quarter of 2020 and is still forecast to be between
190 to 200 million euros.
Drilling Confirms and Extends Main and Sisar Zones in
Suuri, Roura and Rimpi
Areas
Exploration at the Kittila mine remains 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.
Results from the exploration program at Kittila were last
reported in the Company's news release dated October 28, 2020.
At December 31, 2020,
Kittila had proven mineral reserves of 408,000 ounces of gold (3.0
million tonnes grading 4.23 g/t gold), probable mineral reserves of
3.7 million ounces of gold (27.4 million tonnes grading 4.15 g/t
gold), measured mineral resources of 372,000 ounces of gold (4.7
million tonnes grading 2.44 g/t gold), indicated mineral resources
of 1.5 million ounces of gold (18.2 million tonnes grading 2.52 g/t
gold) and inferred mineral resources of 1.5 million ounces of gold
(12.0 million tonnes grading 3.77 g/t gold).
During 2020, the Company completed approximately 28,500
metres of drilling at the Kittila mine and 9,700 metres of regional
exploration in northern Finland.
Selected recent drill results from the Kittila mine are
set out in the table below. The pierce points are shown on
the Kittila – Composite Longitudinal Section and drill hole collar
coordinates are set out in a table in the Appendix. 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)
|
RUG20-520
|
Main Roura
|
147.0
|
160.0
|
1,025
|
11.2
|
5.5
|
and
|
Main Roura
|
163.7
|
173.0
|
1,027
|
8.1
|
4.9
|
and
|
Sisar Top
|
212.0
|
218.0
|
1,036
|
5.2
|
10.9
|
and
|
Sisar Top
|
223.0
|
227.0
|
1,038
|
3.5
|
4.2
|
RUG20-521
|
Main Roura
|
146.0
|
166.0
|
1,043
|
16.8
|
6.8
|
and
|
Main Roura
|
171.4
|
179.0
|
1,048
|
6.4
|
4.4
|
and
|
Main Roura
|
202.0
|
207.0
|
1,056
|
4.3
|
5.0
|
RUG20-523
|
Main Roura
|
157.0
|
195.5
|
998
|
33.6
|
8.1
|
and
|
Sisar Top
|
217.0
|
227.0
|
999
|
8.8
|
2.8
|
RUG20-524
|
Main Roura
|
170.0
|
180.0
|
1,042
|
7.5
|
3.3
|
ROU20-603
|
Main Roura
|
49.0
|
61.0
|
473
|
11.1
|
5.9
|
ROU20-604
|
Main Roura
|
57.0
|
69.0
|
522
|
9.2
|
4.7
|
ROU20-609
|
Main Roura
|
63.0
|
71.0
|
470
|
4.8
|
3.8
|
and
|
Main Roura
|
76.2
|
92.0
|
463
|
9.5
|
12.4
|
ROD19-701L
|
Main Roura
|
792.7
|
804.0
|
1,487
|
3.5
|
5.8
|
RIE19-702K
|
Main Rimpi
|
642.1
|
649.7
|
1,436
|
4.3
|
6.7
|
and
|
Sisar Deep
|
935.0
|
939.0
|
1,563
|
3.4
|
3.8
|
RIE20-609
|
Sisar Top
|
222.0
|
226.7
|
1,057
|
4.5
|
4.9
|
RIE20-610
|
Sisar
Central
|
255.0
|
260.3
|
1,116
|
4.6
|
5.0
|
RIE20-611
|
Sisar
Central
|
364.0
|
370.7
|
1,243
|
4.7
|
3.4
|
[Kittila Mine – Composite Longitudinal
Section]
During the fourth quarter, exploration drilling was
completed in the Roura area at relatively shallow underground
depths. Highlights from the Main Zone include: hole
ROU20-603, which intersected 5.9 g/t gold over 11.1 metres at 473
metres depth; hole ROU20-604, which intersected 4.7 g/t gold over
9.2 metres at 522 metres depth; and hole ROU20-609, which
intersected two lenses to return 3.8 g/t gold over 4.8 metres at
470 metres depth and 12.4 g/t gold over 9.5 metres at 463 metres
depth. This drilling in the Roura area between approximately
460 and 525 metres has shown positive results and fills a gap in
the mineral reserves at a depth of approximately 465 to 500
metres.
Conversion drilling in the Roura area in 2020 has shown
high gold grades over significant widths in the Main and Sisar
zones between approximately 995 and 1,060 metres depth, with many
holes intersecting closely spaced, separate lenses. Hole
RUG20-520 intersected four lenses: 5.5 g/t over 11.2 metres at
1,025 metres depth in the Main Zone, 4.9 g/t over 8.1 metres at
1,027 metres depth in the Main Zone, 10.9 g/t over 5.2 metres at
1,036 metres depth in the Sisar Zone and 4.2 g/t over 3.5 metres at
1,038 metres depth in the Sisar Zone. Hole RUG20-521
intersected three lenses: 6.8 g/t over 16.8 metres at 1,043 metres
depth in the Main Zone, 4.4 g/t over 6.4 metres at 1,048 metres
depth in the Main Zone and 5.0 g/t over 4.3 metres at 1,056 metres
depth in the Main Zone. Hole RUG20-523 intersected two
lenses: 8.1 g/t gold over 33.6 metres at 998 metres depth in the
Main Zone and 2.8 g/t gold over 8.8 metres at 999 metres depth at
the top of the Sisar Zone. Hole RUG20-524 intersected 3.3 g/t
gold over 7.5 metres at 1,042 metres depth in the Main Zone.
These intercepts have confirmed Main Zone and Sisar Zone mineral
reserves and mineral resources in this portion of the Roura
area.
Deep exploration drilling of the Roura area is ongoing
with one drill rig. During the fourth quarter of 2020, hole
ROD19-701L intersected 5.8 g/t gold over 3.5 metres at 1,487 metres
depth in the Main Zone, confirming the Main Zone mineral resources
in the deeper Roura area.
Exploration drilling in the Rimpi area returned highlights
such a hole RIE19-702K, which
intersected 6.7 g/t gold over 4.3 metres at 1,436 metres depth in
the Main Zone and 3.8 g/t gold over 3.4 metres at 1,563 metres
depth in the Sisar Zone. These intercepts have extended
mineral resources between approximately 1,320 and 1,540 metres
depth in this portion of the Rimpi area.
Further drilling in the Rimpi area approximately 250
metres south hole RIE19-702K and at
shallower depths between approximately 1,050 and 1,245 metres
showed positive results and confirmed the Sisar Zone
mineralization. Highlights include hole RIE20-609
intersecting 4.9 g/t gold over 4.5 metres at 1,057 metres depth in
the Sisar Zone; hole RIE20-610 intersecting 5.0 g/t gold over 4.6
metres at 1,116 metres depth in the Sisar Zone; and hole RIE20-611
intersecting 3.4 g/t gold over 4.7 metres at 1,243 metres depth in
the Sisar Zone. The new intercepts have extended mineral
resources between approximately 1,170 and 1,335 metres depth in
this portion of the Rimpi area.
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.
The goal of the exploration program in 2021 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 program is substantially
increased from 2020, with 74,500 metres of drilling planned in 2021
for conversion drilling of existing mineral resources and
exploration drilling to extend the mineral resource limits at
depth.
An additional 15,000 metres of drilling is planned in 2021
for continued regional exploration in Finland.
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 – Drilling
Continues to Expand Cubiro Mineralization; Renewed Exploration
Focus on Pinos Altos Deep in 2021
The 100% owned Pinos
Altos mine in northern Mexico achieved commercial production in
November 2009.
Pinos Altos Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
544
|
|
512
|
Tonnes of ore
processed per day
|
5,913
|
|
5,565
|
Gold grade
(g/t)
|
2.23
|
|
2.34
|
Gold production
(ounces)
|
36,671
|
|
35,822
|
Production costs per
tonne
|
$
|
69
|
|
$
|
68
|
Minesite costs per
tonne
|
$
|
68
|
|
$
|
70
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,021
|
|
$
|
966
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
767
|
|
$
|
758
|
Production costs per tonne in the fourth quarter of 2020
were essentially the same when compared to the prior-year period as
the weakening of the Mexican peso and higher throughput levels
offset higher ground support requirements. Production costs
per ounce in the fourth quarter of 2020 increased when compared to
the prior-year period due to lower gold grades.
Minesite costs per tonne in the fourth 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. Total
cash costs per ounce in the fourth quarter of 2020 increased when
compared to the prior-year period due to lower gold grades,
partially offset by the lower minesite costs per tonne and higher
by-product revenues from higher average realized silver
prices.
Gold production in the fourth quarter of 2020 increased
when compared to the prior-year period primarily due to higher
throughput, partially offset by lower grades. The higher
throughput resulted from a revised mining plan which balanced
reduced tonnage from Cerro
Colorado to manage challenging ground conditions with
increased production from other zones. The lower grades are
primarily due to the adjustment of the mining sequence.
Pinos Altos Mine – Operating
Statistics
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
1,796
|
|
2,007
|
Tonnes of ore
processed per day
|
4,907
|
|
5,499
|
Gold grade
(g/t)
|
2.13
|
|
2.55
|
Gold production
(ounces)
|
114,798
|
|
155,124
|
Production costs per
tonne
|
$
|
69
|
|
$
|
65
|
Minesite costs per
tonne
|
$
|
66
|
|
$
|
66
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,086
|
|
$
|
839
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
749
|
|
$
|
639
|
Production costs per tonne in the full year 2020 increased
when compared to the prior year primarily due to higher costs
associated with open pit mining of the Sinter pit, higher
underground development and ground support requirements, lower
throughput levels and inventory adjustments, partially offset by
the weakening of the Mexican peso. Production costs per ounce
in the full year 2020 increased when compared to the prior year due
to the reasons described above and lower gold
production.
Minesite costs per tonne in the full year 2020 were the
same when compared to the prior year as the higher costs associated
with open pit mining of the Sinter pit, higher underground
development and ground support requirements, and lower throughput
levels were offset by the weakening of the Mexican peso.
Total cash costs per ounce in the full year 2020 increased when
compared to the prior year due to the reasons described above and
lower gold production.
Gold production in the full year 2020 decreased when
compared to the prior-year period due to lower throughput levels
related to the government mandated suspension 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 affected area were completed in
the fourth quarter of 2020. 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 reduced tonnage from Cerro
Colorado with increased production from other zones.
Underground development has been accelerated in those alternate
mining areas in preparation for 2021.
In addition, a third-party audit on Cerro Colorado ground conditions has been
completed and a preliminary analysis was reviewed in the fourth
quarter of 2020. A proposed action plan, which includes
adjustments to the planning process, ground support, mining methods
and mining sequence, will be implemented in the first quarter of
2021.
At the Cubiro deposit, located 9 kilometres northwest of
the Pinos Altos mine site, a total
of 136 metres of ramp development were completed in the fourth
quarter of 2020, bringing total underground development to 2,598
metres completed to-date, and the Company is evaluating the
potential to bring the deposit into production in 2022. The
raise-boring of the 14-foot diameter ventilation raise was
completed in December
2020.
At the Sinter deposit, located approximately two
kilometres northwest of the Pinos
Altos mine site, production started in the fourth quarter of
2020. The underground mine is expected to provide additional
flexibility to the Pinos Altos
operation in 2021.
Drilling at Cubiro, Reyna de Plata and Pinos Altos Deep
Confirms and Extends High-Grade Gold Mineralization; Mineral
Reserves Declared at Cubiro and Reyna East
Exploration in the fourth quarter of 2020 focused on three
targets: the Cubiro deposit, located 9 kilometres northwest of the
Pinos Altos mine site; the Reyna
de Plata Zone, located 1.5 kilometres northeast of the Pinos Altos mine site; and the Cerro Colorado and Santo Nino zones in the western depths of the
Pinos Altos mine, as part of the
Pinos Altos Deep project.
The Company drilled 67 exploration holes (12,553 metres)
on the Pinos Altos property during
the quarter, comprised of 43 holes (8,655 metres) at Cubiro, 9
holes (3,172 metres) at Reyna de Plata and 15 holes (408 metres) at
Reyna East. During 2020, the Company completed a total of
34,900 metres of exploration drilling on the property.
Exploration results from Pinos
Altos were last reported in the Company's news release dated
October 28, 2020.
The positive drilling results from the 2020 exploration
program at the Pinos Altos
property have allowed the Company to declare initial probable
mineral reserves at Cubiro of 143,000 ounces of gold and 860,000
ounces of silver (1.5 million tonnes grading 3.00 g/t gold and
18.02 g/t silver) at underground depths and initial probable
mineral reserves at Reyna East of 56,600 ounces of gold and 1.5
million ounces of silver (1.2 million tonnes grading 1.47 g/t gold
and 39.91 g/t silver) at open-pit depths.
Selected recent drill results from the Cubiro deposit, the
Reyna de Plata Zone and the Cerro
Colorado deposit 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 set out in a
table in the Appendix. All intercepts reported for Cubiro,
Reyna de Plata and Cerro Colorado
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, the Reyna de Plata Zone and Cerro Colorado deposit at the Pinos Altos mine
Drill hole
|
Deposit
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold
grade
(g/t)
(uncapped)
|
Gold
grade
(g/t)
(capped)*
|
Silver
grade
(g/t)
(uncapped)
|
Silver
grade
(g/t)
(capped)*
|
CBUG20-065
|
Cubiro
|
162
|
167.1
|
119
|
2.9
|
14
|
2.3
|
59
|
41
|
CBUG20-072
|
Cubiro
|
109.8
|
114.2
|
242
|
4.1
|
2.5
|
2.5
|
32
|
32
|
CBUG20-073
|
Cubiro
|
217
|
229.2
|
125
|
11.8
|
3.3
|
3.3
|
8
|
8
|
CBUG20-075
|
Cubiro
|
93
|
97.2
|
309
|
3.8
|
3
|
3
|
17
|
17
|
CBUG20-079
|
Cubiro
|
121.9
|
125.2
|
252
|
3.3
|
2.5
|
2.5
|
17
|
17
|
CBUG20-084
|
Cubiro
|
107
|
115
|
277
|
7.9
|
2.3
|
1.9
|
33
|
33
|
CBUG20-093
|
Cubiro
|
90.3
|
93.4
|
195
|
3
|
2.7
|
2.7
|
33
|
33
|
CBUG20-094
|
Cubiro
|
143.5
|
158.8
|
386
|
11.7
|
2.3
|
2.3
|
15
|
15
|
including
|
|
150.9
|
158.8
|
391
|
6.1
|
3.8
|
3.8
|
24
|
24
|
CBUG20-096
|
Cubiro
|
89.3
|
97
|
145
|
7.6
|
5
|
4.1
|
27
|
27
|
CBUG20-098
|
Cubiro
|
153.5
|
170.8
|
164
|
11.1
|
3.2
|
2.1
|
38
|
35
|
including
|
|
154.8
|
162
|
167
|
4.6
|
6.6
|
4.1
|
81
|
73
|
CBUG20-103
|
Cubiro
|
133
|
144
|
71
|
9
|
7.7
|
3.4
|
13
|
13
|
CBUG20-111
|
Cubiro
|
101.8
|
112.5
|
70
|
10.7
|
1.8
|
1.8
|
42
|
42
|
including
|
|
106
|
109
|
70
|
3
|
2.8
|
2.8
|
88
|
88
|
And
|
|
116
|
119
|
64
|
3
|
2.4
|
2.4
|
18
|
18
|
RP20-303
|
Reyna de
Plata
|
121.4
|
139
|
95
|
15.1
|
1.7
|
1.7
|
80
|
80
|
RP20-307
|
Reyna de
Plata
|
229.1
|
240
|
183
|
7.7
|
3.5
|
3.5
|
33
|
33
|
RP20-308
|
Reyna de
Plata
|
256.3
|
259.1
|
199
|
2.6
|
1.3
|
1.3
|
132
|
114
|
UG20-167
|
Cerro
Colorado
|
203
|
253.7
|
731
|
43.9
|
1.2
|
1.2
|
56
|
56
|
including
|
|
218
|
223
|
733
|
4.3
|
2.5
|
2.5
|
64
|
64
|
and
|
|
277.5
|
283.6
|
782
|
5.3
|
2
|
2
|
102
|
86
|
UG20-168
|
Cerro
Colorado
|
224
|
229.1
|
758
|
4.4
|
1.5
|
1.5
|
131
|
115
|
UG20-169
|
Cerro
Colorado
|
191.1
|
205
|
705
|
9.8
|
2.2
|
2.2
|
31
|
31
|
including
|
|
254.8
|
259
|
756
|
3
|
3.3
|
3.3
|
54
|
54
|
UG20-172
|
Cerro
Colorado
|
205
|
213
|
648
|
5.1
|
1.8
|
1.8
|
112
|
104
|
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 with Cubiro –
Composite Longitudinal Section]
During the fourth quarter of 2020 at Cubiro, where
exploration drilling is carried out from an underground ramp,
infill drilling confirmed high gold grades and continuity in the
central portion of the main corridor, while exploration drilling
extended high grade gold mineralization by 400 metres along strike
to the west at an average of 150 metres above the ramp
level.
Highlights from the quarter at Cubiro included hole
CBUG20-096, which intersected 4.1 g/t gold and 27 g/t silver over
7.6 metres at 145 depth in the central-east portion of the deposit
near the ramp level; hole CBUG20-098, which intersected 2.1 g/t
gold and 35 g/t silver over 11.1 metres at 164 metres depth,
including 4.1 g/t gold and 73 g/t silver over 4.6 metres in the
eastern portion of the deposit approximately 110 metres above the
ramp; and hole CBUG20-103, which intersected 3.4 g/t gold and 13
g/t silver over 9.0 metres at 70 metres depth in the western
portion of the deposit approximately 100 metres above the ramp
level.
At Reyna de Plata, exploration drilling has been focused
on evaluating an underground mining scenario by testing the
continuity of gold mineralization in the zone down to 250 metres
below the bottom of the current pit design. A recent
highlight from this campaign is hole RP20-307, which intersected 3.5 g/t gold and 33
g/t silver over 7.7 metres at 183 metres depth in the central
portion of the zone.
In the Pinos Altos Deep project, exploration drilling has
targeted the Santo Nino and
Cerro Colorado zones down to 150
metres below the lowermost operating levels at the Pinos Altos underground mine. The
program to date is confirming narrow high-grade gold mineralization
within broader, low-grade mineralization, demonstrating the
potential to add to the mine's mineral reserves.
The best recent intercept from this program is hole
UG20-167 in the Cerro Colorado
zone, which intersected 1.2 g/t gold and 56 g/t silver over 43.9
metres at 731 metres depth, including 2.5 g/t gold and 64 g/t
silver over 4.3 metres at 733 metres depth, and 2.0 g/t gold and 86
g/t silver over 5.3 metres at 782 metres depth.
During 2021 at Pinos
Altos, the Company expects to spend $3.9 million for 20,000 metres of exploration
drilling that will include conversion drilling at the Pinos Altos mine, and further exploration work
at Cubiro, the Pinos Altos Deep project and Reyna East.
Creston Mascota – Residual leaching continues; site
closure activities underway
The Creston Mascota heap leach open pit mine operated as a
satellite operation to the Pinos
Altos mine from late 2010 until open pit mineral reserves
were depleted during the third quarter of 2020; residual gold
leaching is expected to continue through to the first quarter of
2021.
Creston Mascota Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
—
|
|
94
|
Tonnes of ore
processed per day
|
—
|
|
1,022
|
Gold grade
(g/t)
|
—
|
|
1.19
|
Gold production
(ounces)
|
4,202
|
|
6,919
|
Production costs per
tonne
|
$
|
—
|
|
$
|
90
|
Minesite costs per
tonne
|
$
|
—
|
|
$
|
95
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,445
|
|
$
|
1,217
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
928
|
|
$
|
1,073
|
With the depletion of the Bravo pit in the third quarter of 2020, gold
production in the fourth quarter of 2020 came only from residual
leaching. No ore was stacked on the heap leach and thus no
production costs per tonne or minesite costs per tonne are
reported.
In the fourth quarter of 2020, production costs per ounce
increased when compared to the prior-year period due to lower gold
production. Total cash costs per ounce in the fourth quarter
of 2020 decreased when compared to the prior-year period due to
timing of inventory and higher by-product revenues from higher
realized silver prices, partially offset by lower gold
production.
Gold production in the fourth quarter of 2020 decreased
when compared to the prior-year period due to the reasons described
above.
Creston Mascota Mine – Operating
Statistics
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
526
|
|
1,067
|
Tonnes of ore
processed per day
|
1,920
|
|
2,923
|
Gold grade
(g/t)
|
2.00
|
|
1.87
|
Gold production
(ounces)
|
38,599
|
|
48,380
|
Production costs per
tonne
|
$
|
67
|
|
$
|
34
|
Minesite costs per
tonne
|
$
|
54
|
|
$
|
33
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
909
|
|
$
|
740
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
605
|
|
$
|
554
|
Production costs per tonne in the full year 2020 increased
when compared to the prior year due to the timing of inventory on
the heap leach, lower gold production 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 full year 2020 increased when compared to the
prior year due to lower gold production and the reasons described
above.
Minesite costs per tonne in the full year 2020 increased
when compared to the prior year for the reasons described
above. Total cash costs per ounce in the full year 2020
increased when compared to the prior year due to the reasons
described above, lower gold production and lower by-product revenue
from lower silver grades.
Gold production in the full year 2020 decreased when
compared to the prior year due to less ore stacked on the heap
leach mostly related to the government mandated 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.
Closure activities progressed on schedule in the fourth
quarter of 2020. The major closure activities are expected to
be completed in the first quarter of 2021. Minor residual
leaching is expected to continue into the first quarter of 2021
under the progressive closure plan.
La India – Reduced
Water Levels Drive Lower Production in Second Quarter 2021;
Leaching Operations Expected to Normalize in Second Half of
2021
The 100% owned La India mine in Sonora, Mexico, located approximately 70
kilometres northwest of the Company's Pinos Altos mine, achieved commercial
production in February
2014.
La India Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
1,657
|
|
1,404
|
Tonnes of ore
processed per day
|
18,011
|
|
15,261
|
Gold grade
(g/t)
|
0.55
|
|
0.65
|
Gold production
(ounces)
|
22,393
|
|
20,616
|
Production costs per
tonne
|
$
|
10
|
|
$
|
12
|
Minesite costs per
tonne
|
$
|
11
|
|
$
|
13
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
740
|
|
$
|
812
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
813
|
|
$
|
892
|
Production costs per tonne in the fourth 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 fourth 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 fourth 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 fourth 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 fourth 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
grades as expected by the mining sequence. The recent
installation and commissioning of the new agglomeration system
contributed to the higher production rates achieved in the fourth
quarter of 2020.
La India Mine – Operating
Statistics
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
December 31, 2020
|
|
December 31, 2019
|
Tonnes of ore
processed (thousands of tonnes)
|
5,526
|
|
5,402
|
Tonnes of ore
processed per day
|
15,098
|
|
14,800
|
Gold grade
(g/t)
|
0.67
|
|
0.68
|
Gold production
(ounces)
|
84,974
|
|
82,190
|
Production costs per
tonne
|
$
|
12
|
|
$
|
12
|
Minesite costs per
tonne
|
$
|
12
|
|
$
|
13
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
802
|
|
$
|
799
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
788
|
|
$
|
823
|
Production costs per tonne in the full year 2020 were the
same when compared to the prior-year period. Production costs
per ounce in the full year 2020 slightly increased when compared to
the prior year due to the slightly lower gold grades.
Minesite costs per tonne in the full year 2020 were
essentially the same when compared to the prior year. Total
cash costs per ounce in the full year 2020 decreased when compared
to the prior year due to higher gold production.
Gold production in the full year 2020 increased when
compared to the prior year due to increased ore stacking in the
third and fourth quarter of 2020, partially offset by the impact of
the government mandated suspension of operations during the second
quarter of 2020.
There was a 16% decline in rainfall in the La India region
in 2020 compared to the previous year. This has resulted in
lower water levels at the La India mine site, which is expected to
lead to reduced solution circulation on the heap leach pads from
March until June 2021. Mining and ore stacking will continue
through that period and full leaching activities are expected to
return to more normalized levels in the second half of the
year.
In order to help mitigate the lower water levels, the
Company is drilling additional water wells, and is evaluating the
construction of an additional water storage facility and a second
water dam in the Chipriona area.
The La India heap leach pad construction phase III is
approximately 70% complete and it is expected to be finished in the
second quarter of 2021. The environmental permit modification
that includes the operation of the La India heap leach expansion
(phase III) was approved by Mexican regulators in November 2020.
The evaluation work and scenario analysis on Chipriona and
other sulphide opportunities are on-going and preliminary results
are expected later in 2021.
Regional Exploration at La India Focused on Chipriona
Deposit and Other Sulphide Opportunities
As part of its regional exploration program at La India,
during the fourth quarter of 2021, the Company continued to drill
extensions of the gold- and silver-rich Chipriona sulphide deposit
and associated mineralized veins within the Chipriona structural
corridor as well as other polymetallic sulphide targets near the La
India oxide gold operations. The Chipriona deposit is located
approximately one kilometre north of the La India mine.
At December 31, 2020, the
Chipriona open pit deposit had indicated mineral resources of
44,000 ounces of gold, 2.0 million ounces of silver and 16,600
tonnes of zinc (1.3 million tonnes grading 1.08 g/t gold, 49.81 g/t
silver and 1.31% zinc) and inferred mineral resources of 278,000
ounces of gold, 31.1 million ounces of silver and 103,900 tonnes of
zinc (12.8 million tonnes grading 0.68 g/t gold, 75.59 g/t silver
and 0.81% zinc).
The Company believes the growing mineral resource at
Chipriona warrant continued exploration for sulphide-type
mineralization in the extensions of the Chipriona corridor and
other mineral occurrences in the vicinity of La India mine,
including sulphide mineralization below leachable ore in the
existing open pits.
During 2020, 72 drill holes (18,047 metres) were drilled
in the Chipriona area, including 31 holes (6,229 metres) during the
fourth quarter aimed at infilling and expanding Chipriona's mineral
resources.
Step-out drilling in 2020 intersected mineralization in
splay veins north and south of the main corridor, where recent
drilling has confirmed the lateral continuity of near-surface
mineralization. Infill drilling conducted during the second
half of 2020 has confirmed the thicknesses and grades of the known
mineralized bodies.
Metallurgical and geotechnical drilling and related
studies were conducted during the second half of 2020 to further
assess the potential of using a processing facility to treat
Chipriona mineralization and other sulphide mineralization on the
La India property. An internal technical study assessing the
sulphide mineral resources is expected to be completed in the first
half of 2021.
Selected recent drill intercepts from the Chipriona target
at the La India property are set out in the table below. The
drill hole collar coordinates are set out in a table in the
Appendix. The collars are located on the La India Mine Local
Geology Map. All intercepts reported for the La India
property show uncapped and capped gold and silver grades and
uncapped copper, zinc and lead grades over estimated true widths,
based on a preliminary geological interpretation that will be
updated as new information becomes available with further
drilling.
Recent exploration drill results from Chipriona target
at La India property
Drill Hole
|
Vein
|
From (m)
|
To
(m)
|
Depth of
midpoint
below
surface
(m)
|
Estimated
true
width (m)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade
(g/t)
(capped)*
|
Silver
grade
(g/t)
(uncapped)
|
Silver
grade
(g/t)
(capped)*
|
Copper
grade
(%)
|
Zinc
grade
(%)
|
Lead
grade
(%)
|
CHP20-157
|
BC
|
6.0
|
16
|
13
|
9.8
|
0.8
|
0.8
|
479
|
143
|
0.1
|
0.7
|
0.5
|
CHP20-165
|
Chipriona
|
117.0
|
161.0
|
100
|
40
|
2.2
|
2.0
|
64
|
57
|
0.2
|
1.1
|
0.4
|
including
|
|
136.0
|
138.3
|
80
|
2.0
|
3.2
|
3.2
|
328
|
186
|
0.6
|
5.0
|
2.4
|
and
|
Chipriona
|
140.0
|
161.0
|
138
|
19.0
|
3.5
|
3.1
|
63
|
63
|
0.2
|
1.3
|
0.5
|
CHP20-167
|
disseminated
|
18.0
|
29.5
|
24
|
11.3
|
0.3
|
0.3
|
206
|
140
|
0.3
|
0.0
|
0.1
|
CHP20-168
|
Chipriona
|
76.2
|
96.6
|
82
|
17.7
|
3.5
|
3.4
|
167
|
167
|
0.3
|
1.7
|
1.1
|
CHP20-172
|
Chipriona
|
99.4
|
110.0
|
124
|
8.2
|
0.7
|
0.7
|
293
|
263
|
0.8
|
1.0
|
0.9
|
CHP20-173
|
Chipriona
|
0.0
|
3.0
|
2
|
2.9
|
0.5
|
0.5
|
492
|
248
|
0.9
|
0.7
|
1.4
|
and
|
Chipriona
|
16.8
|
21.0
|
23
|
4.0
|
1.9
|
1.8
|
895
|
502
|
1.7
|
0.7
|
0.5
|
CHP20-178
|
disseminated
|
79.0
|
85.4
|
86
|
6.2
|
1.3
|
1.3
|
745
|
514
|
1.1
|
0.5
|
0.8
|
CHP20-180
|
JJ
|
95.2
|
121.0
|
60
|
25.7
|
3.3
|
3.3
|
225
|
201
|
0.3
|
1.0
|
0.8
|
and
|
JJ
|
126.0
|
132.4
|
76
|
6.3
|
2.9
|
2.7
|
138
|
138
|
0.3
|
1.6
|
0.5
|
and
|
Chipriona
|
177.0
|
213.5
|
121
|
33.1
|
2.3
|
1.9
|
110
|
83
|
0.2
|
1.0
|
0.4
|
including
|
Chipriona
|
180.0
|
184.2
|
111
|
3.8
|
9.9
|
6.7
|
737
|
501
|
1.5
|
2.3
|
1.7
|
CHP20-182
|
Chipriona
|
65.0
|
84.0
|
66
|
18.7
|
0.6
|
0.6
|
314
|
226
|
0.3
|
1.1
|
0.7
|
and
|
disseminated
|
157.0
|
163.6
|
103
|
6.4
|
0.8
|
0.8
|
345
|
345
|
1.6
|
0.3
|
0.3
|
CHP20-183
|
Chipriona
|
94.0
|
109.0
|
53
|
14.3
|
1.4
|
1.4
|
124
|
124
|
0.2
|
2.6
|
1.0
|
and
|
HQ
|
113.0
|
119.0
|
72
|
5.6
|
4.6
|
3.7
|
81
|
81
|
0.2
|
2.7
|
0.7
|
CHP20-185
|
Chipriona
|
19.95
|
44.0
|
24
|
24.9
|
0.6
|
0.6
|
277
|
185
|
0.3
|
0.1
|
0.1
|
CHP20-186
|
Chipriona
|
80.0
|
87.0
|
80
|
7.0
|
0.7
|
0.7
|
391
|
281
|
0.8
|
0.5
|
0.4
|
CHP20-187
|
JJ
|
99.0
|
118.0
|
104
|
19.0
|
2.2
|
2.2
|
93
|
93
|
0.4
|
1.8
|
0.7
|
CHP20-188
|
NI
|
180.0
|
199.8
|
95
|
19.5
|
3.0
|
2.8
|
265
|
214
|
0.2
|
1.4
|
0.9
|
CHP20-190
|
Chipriona
|
53.0
|
62.0
|
57
|
8.8
|
0.6
|
0.6
|
384
|
266
|
0.2
|
2.4
|
3.0
|
and
|
disseminated
|
125.6
|
129.9
|
97
|
4.3
|
0.4
|
0.4
|
357
|
289
|
0.5
|
0.4
|
0.5
|
*Holes at Chipriona
use a capping factor of 10 g/t gold and 700 g/t silver, and no
capping factor for copper, zinc and lead values
|
[La India Mine – Local Geology Map]
Mineralization at Chipriona consists of structurally
controlled gold- and silver-rich veins, stringers, disseminations,
stockwork and breccias with significant zinc and lead content in
sulphides. Surface mapping and sampling have traced these
stacked, sub-parallel structures within the Chipriona mineralized
corridor, which ranges from tens of metres to a few hundred metres
in width over a northwest strike length of at least 3,200 metres,
of which 2,300 metres has been confirmed through
drill-testing. Mineralization has been intersected in the
corridor from surface to a depth of approximately 275 metres.
Currently, the mineralization is open towards the southeast and
down dip, while other poorly exposed mineralized structures remain
untested.
The 2020 drill program has improved the Company's
understanding of the geometry of the mineralized structures at
Chipriona and identified blind vein splays in the northwestern
portion of the deposit. In the central and southeastern
portions of the corridor, step-out and infill drilling confirmed
the continuity and grades of the main mineralized bodies and
significantly expanded them. The mineral intersections
reported in the table above have not been included in the mineral
resources estimate for Chipriona at year-end 2020, though the
Company expects that they will be incorporated in future mineral
resource estimates.
Hole CHP20-168 confirmed grades and widths near the
southeastern edge of the current mineral resources, intersecting
3.4 g/t gold, 167 g/t silver, 1.7% zinc and 1.1% lead over 17.7
metres at 82 metres depth in the Chipriona vein
structure.
Collared 96 metres to the northeast of hole CHP20-168,
hole CHP20-180 intersected 3.3 g/t gold, 201 g/t silver, 1.0% zinc
and 0.8% lead over 25.7 metres at 60 metres depth, followed by 2.7
g/t gold, 138 g/t silver, 1.6% zinc and 0.5% lead over 6.3 metres
at 76 metres depth, with both intersections in the JJ vein
structure. This was followed in the same hole by an
intersection of the Chipriona structure yielding 1.9 g/t gold, 83
g/t silver, 1.0% zinc and 0.4% lead over 3.3 metres at 121 metres
depth, including 6.7 g/t gold, 501 g/t silver, 2.3% zinc and 1.7%
lead over 3.8 metres at 111 metres depth.
Approximately 730 metres northwest of hole CHP20-180, in
the central portion of the deposit, hole CHP20-182 intersected 0.6
g/t gold, 226 g/t silver, 1.1% zinc and 0.7% lead over 18.7 metres
at 66 metres depth in the Chipriona structure followed by 6.4
metres of disseminated mineralization grading 0.8 g/t gold, 345 g/t
silver, 0.3% zinc and 0.3% lead at 103 metres depth.
Approximately 120 metres to the northwest of hole CHP20-182, hole
CHP20-172 intersected 0.7 g/t gold, 263 g/t silver, 1.0% zinc and
0.9% lead over 8.2 metres within the Chipriona structure at 124
metres depth. Another 330 metres to the northwest of hole
CHP20-172, hole CHP20-185 intersected 0.6 g/t gold, 185 g/t silver,
0.1% zinc and 0.1% lead over 24.9 metres at 24 metres
depth.
The significant polymetallic mineralization intersected
near surface at Chipriona over substantial widths suggests the
potential for bulk mining of lower-grade mineralization in
stockwork zones that surround high-grade feeder zones.
The infill and expansion drilling is continuing at
Chipriona in 2021, with an 8,000-metre drill program planned for
the first half of the year. Other regional polymetallic
targets at La India will be prepared for drill testing during the
third quarter of 2021.
To better determine La India's sulphide potential,
$4.0 million is budgeted for 20,000
metres of exploration drilling in 2021 that will target Chipriona,
extensions of the Realito deposit
(oxides and sulphides) and Main zone sulphides beyond the mining
operation's traditional oxide mineral resources and mineral
reserves.
Santa Gertrudis –
Successful Exploration Campaign Results in 39% Growth in Inferred
Mineral Resources and Discovery of Santa Teresa High-Grade Oxide
Zone
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 totalling 32,500 metres by the Company
at Santa Gertrudis in 2020 has
resulted in a 7% increase in the indicated mineral resource
estimate to 111,000 ounces of gold and 816,000 ounces of silver
(5.8 million tonnes grading 0.60 g/t gold and 4.4 g/t silver) at
open-pit (oxide) depth, and a 39% increase in the inferred mineral
resource estimate, to 746,000 ounces of gold and 1.2 million ounces
of silver (19.7 million tonnes grading 1.18 g/t gold and 1.9 g/t
silver) at open-pit (oxide) depth and 879,000 ounces of gold and
6.5 million ounces of silver (8.0 million tonnes grading 3.43 g/t
gold and 25.4 g/t silver) at underground (mostly sulphide) depth,
as of December 31, 2020.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated October 28,
2020.
In the fourth quarter of 2020, drilling at Santa Gertrudis totaled 36 holes (10,336
metres) focused on advancing Amelia, Espiritu Santo, Santa Teresa, El
Toro and other zones.
Selected recent drill results from the Espiritu Santo, El
Toro and Santa Teresa and
Amelia zones at the Santa
Gertrudis project are set out in the table below.
Drill collars are shown on the Santa Gertrudis Project – Local
Geology Map and drill collar coordinates are set out in a table 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
Espiritu Santo, El Toro, Santa
Teresa and Amelia zones 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-20-378
|
Espiritu
Santo
|
16.2
|
27.0
|
13
|
10.5
|
3.9
|
3.9
|
36
|
36
|
and
|
Espiritu
Santo
|
214.0
|
224.4
|
82
|
10.1
|
5.5
|
5.3
|
16
|
16
|
SGE-20-382
|
Espiritu
Santo
|
25.0
|
33.0
|
19
|
7.1
|
1.5
|
1.5
|
7
|
7
|
SGE-20-388
|
Espiritu
Santo
|
152.0
|
162.3
|
88
|
9.8
|
2.1
|
2.1
|
59
|
59
|
SGE-20-394
|
El Toro
|
274.0
|
283.0
|
254
|
7.2
|
3.4
|
3.4
|
1
|
1
|
and
|
El Toro
|
327.0
|
348.0
|
302
|
18.0
|
3.6
|
3.6
|
2
|
2
|
Including
|
|
329.0
|
334.2
|
294
|
4.3
|
8.3
|
8.3
|
4
|
4
|
SGE-20-395
|
Santa
Teresa
|
132.0
|
137.1
|
106
|
5.1
|
4.0
|
4.0
|
4
|
4
|
SGE-20-397
|
Santa
Teresa
|
181.0
|
185.5
|
119
|
4.5
|
2.1
|
2.1
|
47
|
47
|
SGE-20-398
|
Santa
Teresa
|
76.0
|
81.5
|
79
|
5.5
|
1.5
|
1.5
|
42
|
42
|
and
|
Santa
Teresa
|
91.2
|
98.7
|
91
|
7.5
|
3.9
|
3.9
|
10
|
10
|
SGE-20-402
|
Santa
Teresa
|
72.0
|
76.5
|
69
|
4.5
|
1.3
|
1.3
|
4
|
4
|
and
|
Santa
Teresa
|
98.3
|
106.0
|
90
|
7.1
|
1.1
|
1.1
|
2
|
2
|
and
|
Santa
Teresa
|
113.0
|
127.8
|
102
|
13.2
|
1.1
|
1.1
|
3
|
3
|
SGE20-403
|
Amelia
|
367.0
|
373.0
|
283
|
4.2
|
4.8
|
4.8
|
3
|
3
|
and
|
Amelia
|
383.6
|
388.0
|
296
|
3.7
|
3.5
|
3.5
|
18
|
18
|
and
|
Amelia
|
445.0
|
453.0
|
351
|
6.6
|
2.6
|
2.6
|
4
|
4
|
and
|
Amelia
|
467.0
|
482.0
|
378
|
12.4
|
2.8
|
2.8
|
12
|
12
|
SGE20-404
|
Amelia
|
260.50
|
270.2
|
152
|
8.6
|
5.1
|
5.1
|
4
|
4
|
and
|
Amelia
|
389.0
|
395.5
|
190
|
6.2
|
4.4
|
4.4
|
2
|
2
|
SGE20-411
|
Amelia
|
443.0
|
479.0
|
389
|
33.0
|
5.7
|
5.7
|
10
|
10
|
including
|
|
458.0
|
472.0
|
387
|
13.0
|
10.8
|
10.8
|
11
|
11
|
and
|
Amelia
|
491.0
|
495.0
|
411
|
3.5
|
6.4
|
6.4
|
131
|
131
|
*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]
The substantial year-over-year increase in inferred
mineral resources is mainly attributable to exploration drilling
success in 2020 at the Amelia deposit and nearby mineralized
structures.
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 140
metres depth, while the underground mineral resource below the
open-pit mineral resource has been extended by 350 metres to a
depth of approximately 700 metres.
The underground inferred mineral resource at Amelia is
comprised of 785,300 ounces of gold and 6.2 million ounces of
silver in sulphide (6.4 million tonnes grading 3.84 g/t gold and
30.8 g/t silver) and 93,700 ounces of gold and 220,000 ounces of
silver in oxide (1.6 million tonnes grading 1.8 g/t gold and 4.3
g/t silver), as of December 31,
2020. This represents a 95% increase year over year in
inferred mineral resources at Amelia.
The Amelia mineral resource is part of the Santa Gertrudis project's mineral resource
estimate as of December 31,
2020. Amelia drilling results reported in this news release
were received after the mineral resource estimate at year-end 2020
and will be incorporated into the next mineral resource
update.
Hole SGE20-403 in the west-central portion of the Amelia
deposit intersected four wide mineralized structures: 4.8 g/t gold
and 3 g/t silver over 4.2 metres at 283 metres depth in oxide; 3.5
g/t gold and 18 g/t silver over 3.7 metres at 296 metres depth in
oxide; 2.6 g/t gold and 4 g/t silver over 6.6 metres at 351 metres
depth in sulphide; and 2.8 g/t gold and 12 g/t silver over 12.4
metres at 378 metres depth in sulphide. Located 165 metres
southeast of hole SGE20-403, hole SGE20-404 in Amelia intersected a
known structure with 5.1 g/t gold and 4 g/t silver over 8.6 metres
at 152 metres depth and a new structure with 4.4 g/t gold and 2 g/t
silver over 6.2 metres at 190 metres depth. Approximately 140
metres northwest of hole SGE20-404, hole SGE20-411 intersected
known structures within the mineral resource and returned 5.7 g/t
gold and 10 g/t silver over 33.0 metres at 389 metres depth,
including 10.8 g/t gold and 11 g/t silver over 13.0 metres at 387
metres depth; and 6.4 g/t gold and 131 g/t silver over 3.5 metres
at 411 metres depth.
Exploration drilling in the Espiritu Santo zone of the Trinidad Trend
during the fourth quarter showed that mineralization pinches and
swells along the structure, and that the widest portions of the
structure remain open down-plunge at depth and warrant follow-up
drilling in 2021. Highlight hole SGE20-378 in Espiritu Santo intersected 3.9 g/t gold and 36
g/t silver over 10.5 metres at 13 metres depth and 5.5 g/t gold and
16 g/t silver over 10.1 metres at 82 metres depth.
In the El Toro Trend, approximately 4 kilometres south of
the Trinidad Trend, drilling followed up the previously released
drill hole SGE20-353, which intersected a wide mineralized
structure under the mineral resource. Located 109 metres
southwest of SGE20-353, hole SGE20-394 intersected 3.4 g/t gold and
1 g/t silver over 7.2 metres at 254 metres depth and 3.6 g/t gold
and 2 g/t silver over 18.0 metres at 302 metres depth, including
8.3 g/t gold and 4 g/t silver over 4.3 metres at 294 metres depth,
demonstrating higher grades within the sulphide zone and suggesting
a potential feeder zone at depth similar to Amelia.
The Santa Teresa zone
contains a small historical pit located 3.2 kilometres southwest of
the Amelia deposit. During 2020, Agnico Eagle's drilling
campaign at Santa Teresa
discovered shallow high-grade oxide mineralization that remains
open in all directions. Hole SGE20-397 at Santa Teresa intersected 2.1 g/t gold and 47
g/t silver over 4.5 metres at 119 metres depth. Located 94
metres southwest of hole SGE20-397, hole SGE20-395 intersected 4.0
g/t gold and 4 g/t silver over 5.1 metres at 106 metres
depth. Located 219 metres southwest of hole SGE20-395, hole
SGE20-402 intersected 1.3 g/t gold and 4 g/t silver over 4.5 metres
at 69 metres depth, 1.1 g/t gold and 2 g/t silver over 7.1 metres
at 90 metres depth and 1.1 g/t gold and 3 g/t silver over 13.2
metres at 102 metres depth. Located 104 metres southwest of
hole SGE20-402, hole SGE20-398 intersected 1.5 g/t gold and 42 g/t
silver over 5.5 metres at 79 metres depth and 3.9 g/t gold and 10
g/t silver over 7.5 metres at 91 metres depth.
The recent drilling at Santa
Teresa was carried out along 400 metres of strike and
approximately 150 metres below surface or 50 to 100 metres under
historical drill holes, and an interpretation of the results
suggest the presence of larger north-northeast structures in the
western portion of the property that may control higher-grade
mineralization. Drilling will continue in the zone in 2021
with an aim of outlining initial mineral resources.
Exploration is ongoing at Santa
Gertrudis with $11 million
budgeted for 30,000 metres of drilling in 2021, focused on
expanding the mineral resources, testing new targets and continuing
metallurgical studies. An internal technical evaluation of
the project is expected to be completed in 2021.
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 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, AISC per ounce and
minesite costs per tonne. The estimates are based upon the
total cash costs per ounce, AISC per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at its mines
and projects and, consistent with the reconciliation of these
actual costs referred to above, do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time as each project is developed and
mined. It is therefore not practicable to reconcile these
forward-looking non-GAAP financial measures to the most comparable
IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as
at February 11, 2021. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include, without limitation:
statements regarding the impact of the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19 on the Company's
future operations, including its employees and
overall business; the Company's forward-looking guidance, including
metal production, estimated ore grades, recovery rates, project
timelines, drilling results, life of mine estimates, total cash
costs per ounce, AISC per ounce, minesite costs per tonne, other
expenses, 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, the Amaruq underground project and the Odyssey project,
including the timing, funding, completion and commissioning thereof
and production therefrom; statements about the
Company's plans at the Hope Bay mine; statements concerning
other expansion projects, recovery rates, mill throughput,
optimization and projected exploration, including costs and other
estimates upon which such projections are based; statements
regarding timing and amounts of capital expenditures, other
expenditures and other cash needs, and expectations as to the
funding thereof; estimates of future mineral reserves, mineral
resources, mineral production and sales; the projected development
of certain ore deposits, including estimates of exploration,
development and production and other capital costs and estimates of
the timing of such exploration, development and production or
decisions with respect to such exploration, development and
production; 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, Meliadine mine and the Hope
Bay mine which operate as fly-in/fly-out camps),
travel restrictions, contractor availability, supply
availability, ability to sell or deliver gold dore bars or
concentrate, availability of insurance and the cost thereof, the
ability to procure inputs required for the Company's operations and
projects or other aspects of the Company's business; uncertainties
with respect to the effect on the global economy associated with
the COVID-19 pandemic and measures taken to reduce the spread of
COVID-19, any of which could negatively affect financial markets,
including the trading price of the Company's shares and the price
of gold, and could adversely affect the Company's ability to raise
capital; the volatility of prices of gold and other metals;
uncertainty of mineral reserves, mineral resources, mineral grades
and mineral recovery estimates; uncertainty of future production,
project development, capital expenditures and other costs; foreign
exchange rate fluctuations; financing of additional capital
requirements; cost of exploration and development programs; seismic
activity at the Company's operations, including the LaRonde Complex
and Goldex mine; mining risks; community protests, including
by First Nations groups; risks associated with foreign operations;
governmental and environmental regulation; the volatility of the
Company's stock price; and risks associated with the Company's
currency, fuel and by-product metal derivative strategies.
For a more detailed discussion of such risks and other factors that
may affect the Company's ability to achieve the expectations set
forth in the forward-looking statements contained in this news
release, see the AIF and MD&A filed on SEDAR at www.sedar.com
and included in the Form 40-F filed on EDGAR at www.sec.gov, as
well as the Company's other filings with the Canadian securities
regulators and the SEC. Other than as required by law, the
Company does not intend, and does not assume any obligation, to
update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates
contained in this news release have been prepared in accordance
with The Canadian Securities Administrators' NI 43-101. These
standards are similar to those used by SEC Industry Guide No. 7, as
interpreted by the SEC staff. However, the definitions in NI
43-101 differ in certain respects from those under SEC Industry
Guide 7. Accordingly, mineral reserve and mineral resource
information contained in this news release may not be comparable to
similar information disclosed by United
States companies. Under the SEC's Industry Guide 7,
mineralization may not be classified as a "reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve determination is made.
For United States
reporting purposes, the SEC has adopted amendments to its
disclosure rules (the "SEC Modernization Rules") to modernize the
mining property disclosure requirements for issuers whose
securities are registered with the SEC under the United States
Securities Exchange Act of 1934, as amended (the "Exchange Act"),
which became effective February 25,
2019. The SEC Modernization Rules more closely align the
SEC's disclosure requirements and policies for mining properties
with current industry and global regulatory practices and
standards, including NI 43-101, and replace the historical property
disclosure requirements for mining registrants that were included
in SEC Industry Guide 7. Issuers must begin to comply with
the SEC Modernization Rules in their first fiscal year beginning on
or after January 1, 2021, though
Canadian issuers that report in the
United States using the Multijurisdictional Disclosure
System ("MJDS") may still use NI 43-101 rather than the SEC
Modernization Rules when using the SEC's MJDS registration
statement and annual report forms.
As a result of the adoption of the SEC Modernization
Rules, the SEC now recognizes estimates of "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources." In addition, the SEC has amended definitions of
"proven mineral reserves" and "probable mineral reserves" in the
SEC Modernization Rules, with definitions that are substantially
similar to those used in NI 43-101.
United States investors
are cautioned that while the SEC now recognizes "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that any part or all of the
mineral deposits in these categories will ever be converted into a
higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Under Canadian
regulations, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in
limited circumstances. Investors are cautioned not to
assume that any "measured mineral resources", "indicated mineral
resources", or "inferred mineral resources" that the Company
reports in this news release are or will be economically or legally
mineable.
Further, "inferred mineral resources" have a great amount
of uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all
of an inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in
this news release are estimates, and no assurance can be given that
the anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals
contained in mineral reserves in its calculation of contained
ounces and mineral reserves are not reported as a subset of mineral
resources.
Scientific and Technical Information
The scientific and technical information contained in this
news release relating to Quebec
operations has been approved by Daniel Paré, P.Eng., Vice-President
Operations – Eastern Canada;
relating to Nunavut operations has
been approved by Dominique Girard, Eng., Senior Vice-President,
Operations – Canada and
Europe; relating to Finland operations has been approved by
Francis Brunet, Eng., Corporate Director, Business Strategy;
relating to Southern Business operations has been approved by Marc
Legault, Eng., Senior Vice-President, Operations – U.S.A. & Latin
America; and relating to exploration has been approved by
Guy Gosselin, Eng. and P.Geo., Senior Vice-President, Exploration,
each of whom is a "Qualified Person" for the purposes of NI
43-101.
The scientific and technical information relating to
Agnico Eagle's mineral reserves and mineral resources contained
herein (other than the Canadian Malartic mine) has been approved by
Dyane Duquette, P.Geo., Corporate
Director, Reserves Development of the Company; relating to mineral
reserves and mineral resources at the Canadian Malartic mine and
other Partnership projects such as the Odyssey project, has been
approved by Sylvie Lampron, Eng., Senior Project Mine Engineer at
Canadian Malartic Corporation (for
engineering) and Pascal Lehouiller,
P.Geo., Senior Resource Geologist at Canadian Malartic Corporation (for geology), each of whom
is a "Qualified Person" for the purposes of NI 43-101.
Detailed Mineral Reserve and Mineral Resource Data (as at
December 31, 2020)
|
|
|
MINERAL
RESERVES
|
|
|
|
As of December 31,
2020
|
OPERATION
|
PROVEN
|
PROBABLE
|
PROVEN &
PROBABLE
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
LaRonde
|
Underground
|
100%
|
4,338
|
5.11
|
712
|
10,828
|
6.53
|
2,272
|
15,166
|
6.12
|
2,984
|
LaRonde Zone
5
|
Underground
|
100%
|
5,155
|
2.09
|
346
|
6,601
|
2.08
|
442
|
11,756
|
2.08
|
788
|
LaRonde Complex
Total
|
9,493
|
3.47
|
1,058
|
17,429
|
4.84
|
2,713
|
26,922
|
4.36
|
3,772
|
Canadian
Malartic
|
Open Pit
|
50%
|
25,370
|
0.85
|
696
|
36,068
|
1.31
|
1,518
|
61,438
|
1.12
|
2,214
|
Goldex
|
Underground
|
100%
|
942
|
2.45
|
74
|
21,179
|
1.53
|
1,040
|
22,121
|
1.57
|
1,115
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
|
-
|
5,413
|
0.85
|
147
|
5,413
|
0.85
|
147
|
Amaruq
|
Open Pit
|
100%
|
950
|
2.06
|
63
|
18,920
|
3.72
|
2,261
|
19,870
|
3.64
|
2,324
|
Amaruq
|
Underground
|
100%
|
-
|
|
-
|
3,316
|
5.29
|
564
|
3,316
|
5.29
|
564
|
Amaruq
Total
|
|
|
950
|
2.06
|
63
|
22,236
|
3.95
|
2,825
|
23,186
|
3.87
|
2,888
|
Meadowbank
|
Open Pit
|
100%
|
34
|
2.34
|
3
|
-
|
|
-
|
34
|
2.34
|
3
|
Meadowbank Complex
Total
|
983
|
2.07
|
65
|
22,236
|
3.95
|
2,825
|
23,220
|
3.87
|
2,891
|
Meliadine
|
Open Pit
|
100%
|
181
|
4.10
|
24
|
5,460
|
4.70
|
826
|
5,640
|
4.68
|
850
|
Meliadine
|
Underground
|
100%
|
1,288
|
7.28
|
301
|
14,342
|
6.23
|
2,874
|
15,629
|
6.32
|
3,175
|
Meliadine
Total
|
1,468
|
6.89
|
325
|
19,801
|
5.81
|
3,700
|
21,270
|
5.89
|
4,025
|
Upper
Beaver
|
Underground
|
100%
|
-
|
|
-
|
7,992
|
5.43
|
1,395
|
7,992
|
5.43
|
1,395
|
Hammond
Reef
|
Open Pit
|
100%
|
-
|
|
-
|
123,473
|
0.84
|
3,323
|
123,473
|
0.84
|
3,323
|
Kittila
|
Underground
|
100%
|
2,999
|
4.23
|
408
|
27,434
|
4.15
|
3,659
|
30,433
|
4.16
|
4,067
|
Pinos
Altos
|
Open Pit
|
100%
|
62
|
0.88
|
2
|
3,605
|
1.26
|
146
|
3,667
|
1.25
|
148
|
Pinos
Altos
|
Underground
|
100%
|
2,691
|
2.21
|
191
|
7,105
|
2.36
|
539
|
9,796
|
2.32
|
731
|
Pinos Altos
Total
|
2,753
|
2.18
|
193
|
10,710
|
1.99
|
685
|
13,463
|
2.03
|
878
|
La India
|
Open Pit
|
100%
|
89
|
0.35
|
1
|
11,939
|
0.66
|
255
|
12,029
|
0.66
|
256
|
Totals
|
|
|
44,098
|
1.99
|
2,821
|
303,675
|
2.18
|
21,261
|
347,773
|
2.15
|
24,082
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000 Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
LaRonde
|
Underground
|
100%
|
4,338
|
15.59
|
2,173
|
10,828
|
18.81
|
6,548
|
15,166
|
17.89
|
8,722
|
Pinos
Altos
|
Open Pit
|
100%
|
62
|
13.24
|
27
|
3,605
|
33.68
|
3,904
|
3,667
|
33.34
|
3,931
|
Pinos
Altos
|
Underground
|
100%
|
2,691
|
54.31
|
4,698
|
7,105
|
49.28
|
11,257
|
9,796
|
50.66
|
15,956
|
Pinos Altos
Total
|
subtotal
|
|
2,753
|
53.38
|
4,725
|
10,710
|
44.03
|
15,162
|
13,463
|
45.94
|
19,886
|
La India
|
Open Pit
|
100%
|
89
|
1.38
|
4
|
11,939
|
3.01
|
1,155
|
12,029
|
3.00
|
1,159
|
Totals
|
|
|
7,180
|
29.90
|
6,902
|
33,478
|
21.24
|
22,865
|
40,658
|
22.77
|
29,767
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
tonnes
Cu
|
000
Tonnes
|
%
|
tonnes
Cu
|
000
Tonnes
|
%
|
tonnes
Cu
|
LaRonde
|
Underground
|
100%
|
4,338
|
0.21
|
9,291
|
10,828
|
0.28
|
29,826
|
15,166
|
0.26
|
39,117
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
|
-
|
5,413
|
0.48
|
25,891
|
5,413
|
0.48
|
25,891
|
Upper
Beaver
|
Underground
|
100%
|
-
|
|
-
|
7,992
|
0.25
|
19,980
|
7,992
|
0.25
|
19,980
|
Totals
|
|
|
4,338
|
0.21
|
9,291
|
24,233
|
0.31
|
75,696
|
28,571
|
0.30
|
84,987
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
tonnes
Zn
|
000
Tonnes
|
%
|
tonnes
Zn
|
000
Tonnes
|
%
|
tonnes
Zn
|
LaRonde
|
Underground
|
100%
|
4,338
|
0.53
|
22,894
|
10,828
|
0.85
|
92,560
|
15,166
|
0.76
|
115,454
|
Totals
|
|
|
4,338
|
0.53
|
22,894
|
10,828
|
0.85
|
92,560
|
15,166
|
0.76
|
115,454
|
|
|
|
MINERAL RESOURCES
- As of December 31, 2020
|
OPERATION
|
MEASURED
|
INDICATED
|
MEASURED &
INDICATED
|
INFERRED
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
4,904
|
3.55
|
560
|
4,904
|
3.55
|
560
|
6,369
|
4.54
|
931
|
LaRonde Zone
5
|
Underground
|
100%
|
-
|
|
-
|
12,218
|
1.98
|
776
|
12,218
|
1.98
|
776
|
15,130
|
2.88
|
1,399
|
LaRonde Complex
Total
|
-
|
|
-
|
17,122
|
2.43
|
1,336
|
17,122
|
2.43
|
1,336
|
21,499
|
3.37
|
2,330
|
Canadian
Malartic
|
Open Pit
|
50%
|
149
|
0.55
|
3
|
538
|
0.59
|
10
|
686
|
0.58
|
13
|
3,532
|
0.74
|
85
|
Canadian
Malartic
|
Underground
|
50%
|
-
|
|
-
|
2,028
|
1.42
|
92
|
2,028
|
1.42
|
92
|
156
|
1.52
|
8
|
Canadian Malartic
Total
|
149
|
0.55
|
3
|
2,566
|
1.24
|
103
|
2,715
|
1.21
|
105
|
3,688
|
0.78
|
92
|
Odyssey
|
Underground
|
50%
|
-
|
|
-
|
1,000
|
1.90
|
61
|
1,000
|
1.90
|
61
|
13,853
|
2.05
|
913
|
East
Malartic
|
Underground
|
50%
|
-
|
|
-
|
5,658
|
2.03
|
368
|
5,658
|
2.03
|
368
|
43,444
|
1.91
|
2,669
|
East
Gouldie
|
Underground
|
50%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
31,469
|
3.17
|
3,209
|
Goldex
|
Underground
|
100%
|
12,360
|
1.86
|
739
|
19,247
|
1.53
|
944
|
31,607
|
1.66
|
1,683
|
24,812
|
1.49
|
1,191
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
|
-
|
4,870
|
0.63
|
98
|
4,870
|
0.63
|
98
|
-
|
|
-
|
Zulapa
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
391
|
3.14
|
39
|
Meadowbank
|
Open Pit
|
100%
|
-
|
|
-
|
1,145
|
2.46
|
90
|
1,145
|
2.46
|
90
|
4
|
2.06
|
0
|
Amaruq
|
Open Pit
|
100%
|
-
|
|
-
|
7,022
|
2.53
|
570
|
7,022
|
2.53
|
570
|
886
|
2.65
|
75
|
Amaruq
|
Underground
|
100%
|
-
|
|
-
|
6,571
|
4.28
|
904
|
6,571
|
4.28
|
904
|
7,924
|
4.70
|
1,198
|
Amaruq
Total
|
-
|
|
-
|
13,593
|
3.37
|
1,474
|
13,593
|
3.37
|
1,474
|
8,810
|
4.50
|
1,273
|
Meadowbank Complex
Total
|
|
-
|
|
-
|
14,738
|
3.30
|
1,564
|
14,738
|
3.30
|
1,564
|
8,814
|
4.49
|
1,274
|
Meliadine
|
Open Pit
|
100%
|
-
|
|
-
|
6,917
|
3.00
|
668
|
6,917
|
3.00
|
668
|
816
|
4.23
|
111
|
Meliadine
|
Underground
|
100%
|
81
|
3.66
|
10
|
11,779
|
3.83
|
1,452
|
11,860
|
3.83
|
1,461
|
11,451
|
5.94
|
2,186
|
Meliadine
Total
|
81
|
3.66
|
10
|
18,697
|
3.53
|
2,120
|
18,777
|
3.53
|
2,129
|
12,267
|
5.82
|
2,297
|
Hammond
Reef
|
Open Pit
|
100%
|
47,063
|
0.54
|
819
|
86,304
|
0.53
|
1,478
|
133,367
|
0.54
|
2,298
|
-
|
|
-
|
Upper
Beaver
|
Underground
|
100%
|
-
|
|
-
|
3,636
|
3.45
|
403
|
3,636
|
3.45
|
403
|
8,688
|
5.07
|
1,416
|
AK Project
|
Underground
|
100%
|
-
|
|
-
|
1,268
|
6.51
|
265
|
1,268
|
6.51
|
265
|
2,373
|
5.32
|
406
|
Anoki-McBean
|
Underground
|
100%
|
-
|
|
-
|
1,868
|
5.33
|
320
|
1,868
|
5.33
|
320
|
2,526
|
4.70
|
382
|
Upper
Canada
|
Open Pit
|
100%
|
-
|
|
-
|
2,006
|
1.62
|
104
|
2,006
|
1.62
|
104
|
1,020
|
1.44
|
47
|
Upper
Canada
|
Underground
|
100%
|
-
|
|
-
|
8,433
|
2.28
|
618
|
8,433
|
2.28
|
618
|
17,588
|
3.21
|
1,816
|
Upper Canada
Total
|
-
|
|
-
|
10,439
|
2.15
|
722
|
10,439
|
2.15
|
722
|
18,608
|
3.11
|
1,863
|
Kittila
|
Open Pit
|
100%
|
-
|
|
-
|
229
|
3.41
|
25
|
229
|
3.41
|
25
|
373
|
3.89
|
47
|
Kittila
|
Underground
|
100%
|
4,748
|
2.44
|
372
|
17,999
|
2.51
|
1,452
|
22,747
|
2.49
|
1,824
|
11,620
|
3.77
|
1,408
|
Kittila
Total
|
4,748
|
2.44
|
372
|
18,228
|
2.52
|
1,477
|
22,976
|
2.50
|
1,849
|
11,993
|
3.77
|
1,454
|
Kuotko
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
284
|
3.18
|
29
|
Kylmäkangas
|
Underground
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
1,896
|
4.11
|
250
|
Barsele
|
Open Pit
|
55%
|
-
|
|
-
|
3,178
|
1.08
|
111
|
3,178
|
1.08
|
111
|
2,260
|
1.25
|
91
|
Barsele
|
Underground
|
55%
|
-
|
|
-
|
1,158
|
1.77
|
66
|
1,158
|
1.77
|
66
|
13,552
|
2.10
|
914
|
Barsele
Total
|
-
|
|
-
|
4,335
|
1.27
|
176
|
4,335
|
1.27
|
176
|
15,811
|
1.98
|
1,005
|
Pinos
Altos
|
Open Pit
|
100%
|
-
|
|
-
|
1,734
|
0.81
|
45
|
1,734
|
0.81
|
45
|
468
|
1.18
|
18
|
Pinos
Altos
|
Underground
|
100%
|
-
|
|
-
|
15,701
|
1.66
|
837
|
15,701
|
1.66
|
837
|
3,090
|
1.86
|
185
|
Pinos Altos
Total
|
-
|
|
-
|
17,436
|
1.57
|
882
|
17,436
|
1.57
|
882
|
3,558
|
1.77
|
203
|
La India
|
Open Pit
|
100%
|
9,781
|
0.87
|
274
|
1,309
|
0.73
|
31
|
11,091
|
0.85
|
305
|
419
|
0.55
|
7
|
Tarachi
|
Open Pit
|
100%
|
-
|
|
-
|
22,665
|
0.40
|
294
|
22,665
|
0.40
|
294
|
6,476
|
0.33
|
68
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
1,266
|
1.08
|
44
|
1,266
|
1.08
|
44
|
12,799
|
0.68
|
278
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
|
-
|
8,834
|
1.16
|
331
|
8,834
|
1.16
|
331
|
9,628
|
1.13
|
351
|
Santa
Gertrudis
|
Open Pit
|
100%
|
-
|
|
-
|
5,778
|
0.60
|
111
|
5,778
|
0.60
|
111
|
19,691
|
1.18
|
746
|
Santa
Gertrudis
|
Underground
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
7,980
|
3.43
|
879
|
Santa Gertrudis
Total
|
-
|
|
-
|
5,778
|
0.60
|
111
|
5,778
|
0.60
|
111
|
27,671
|
1.83
|
1,625
|
Totals
|
|
|
74,182
|
0.93
|
2,216
|
267,264
|
1.53
|
13,130
|
341,446
|
1.40
|
15,346
|
282,965
|
2.57
|
23,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
4,904
|
21.39
|
3,372
|
4,904
|
21.39
|
3,372
|
6,369
|
23.98
|
4,911
|
Kylmäkangas
|
Underground
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
1,896
|
31.11
|
1,896
|
Pinos
Altos
|
Open Pit
|
100%
|
-
|
|
-
|
1,734
|
16.45
|
917
|
1,734
|
16.45
|
917
|
468
|
42.00
|
632
|
Pinos
Altos
|
Underground
|
100%
|
-
|
|
-
|
15,701
|
44.18
|
22,303
|
15,701
|
44.18
|
22,303
|
3,090
|
50.41
|
5,008
|
Pinos Altos
Total
|
-
|
|
-
|
17,436
|
41.42
|
23,221
|
17,436
|
41.42
|
23,221
|
3,558
|
49.31
|
5,640
|
La India
|
Open Pit
|
100%
|
9,781
|
5.37
|
1,690
|
1,309
|
4.04
|
170
|
11,091
|
5.22
|
1,860
|
419
|
3.09
|
42
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
1,266
|
49.81
|
2,028
|
1,266
|
49.81
|
2,028
|
12,799
|
75.59
|
31,104
|
El Barqueño
Silver
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
4,393
|
124.06
|
17,523
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
|
-
|
8,834
|
4.73
|
1,343
|
8,834
|
4.73
|
1,343
|
9,628
|
16.86
|
5,218
|
Santa
Gertrudis
|
Open Pit
|
100%
|
-
|
|
-
|
5,778
|
4.39
|
816
|
5,778
|
4.39
|
816
|
19,691
|
1.90
|
1,200
|
Santa
Gertrudis
|
Underground
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
7,980
|
25.39
|
6,515
|
Santa Gertrudis
Total
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
27,671
|
8.67
|
7,715
|
Totals
|
|
|
9,781
|
5.37
|
1,690
|
39,528
|
24.35
|
30,950
|
49,309
|
20.59
|
32,640
|
66,733
|
34.51
|
74,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
4,904
|
0.13
|
6,371
|
4,904
|
0.13
|
6,371
|
6,369
|
0.27
|
17,352
|
Akasaba
West
|
Open Pit
|
100%
|
-
|
|
-
|
4,870
|
0.37
|
18,246
|
4,870
|
0.37
|
18,246
|
-
|
|
-
|
Upper
Beaver
|
Underground
|
100%
|
-
|
|
-
|
3,636
|
0.14
|
5,135
|
3,636
|
0.14
|
5,135
|
8,688
|
0.20
|
17,284
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
1,266
|
0.03
|
404
|
1,266
|
0.03
|
404
|
12,799
|
0.13
|
16,670
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
|
-
|
8,834
|
0.19
|
16,400
|
8,834
|
0.19
|
16,400
|
9,628
|
0.22
|
21,152
|
Totals
|
|
|
-
|
|
-
|
23,511
|
0.20
|
46,555
|
23,511
|
0.20
|
46,555
|
37,484
|
0.19
|
72,458
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000 T
onnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
4,904
|
0.81
|
39,560
|
4,904
|
0.81
|
39,560
|
6,369
|
1.96
|
124,660
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
1,266
|
1.31
|
16,569
|
1,266
|
1.31
|
16,569
|
12,799
|
0.81
|
103,906
|
Totals
|
-
|
|
-
|
6,171
|
0.91
|
56,129
|
6,171
|
0.91
|
56,129
|
19,168
|
1.19
|
228,566
|
Mineral reserves are not a subset of mineral
resources. Tonnage amounts and contained metal amounts set
out in this table have been rounded to the nearest thousand, so
aggregate amounts may differ from column totals. Mineral
reserves are in-situ, taking into account all mining recoveries,
before mill or heap leach recoveries.
In prior periods, mineral reserves for all properties were
typically estimated using historic three-year average metals prices
and foreign exchange rates in accordance with the SEC
guidelines. These guidelines require the use of prices that
reflect current economic conditions at the time of mineral reserve
determination, which the Staff of the SEC has interpreted to mean
historic three-year average prices. Given the current
commodity price environment, Agnico Eagle uses price assumptions
that are below the three-year averages.
Assumptions used for the December 31, 2020 mineral reserves estimate at
all mines and advanced projects reported by the
Company
|
Metal prices
|
Exchange rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
peso per
US$1.00
|
US$ per
€1.00
|
Operations and
projects
|
$1,250
|
$17
|
$2.75
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hammond
Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper
Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
NI 43-101 requires mining companies to disclose mineral
reserves and mineral resources using the subcategories of "proven
mineral reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert
mineral resources to mineral reserves. These include, but are
not restricted to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors.
A proven mineral reserve is the economically mineable part
of a measured mineral resource. A proven mineral reserve
implies a high degree of confidence in the modifying factors.
A probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of
solid material of economic interest in or on the Earth's crust in
such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with confidence sufficient
to allow the application of modifying factors to support detailed
mine planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all
of an inferred mineral resource exists, or is economically or
legally mineable.
A feasibility study is a comprehensive technical and
economic study of the selected development option for a mineral
project that includes appropriately detailed assessments of
applicable modifying factors, together with any other relevant
operational factors and detailed financial analysis that are
necessary to demonstrate, at the time of reporting, that extraction
is reasonably justified (economically mineable). The results
of the study may reasonably serve as the basis for a final decision
by a proponent or financial institution to proceed with, or
finance, the development of the project. The confidence level
of the study will be higher than that of a pre-feasibility
study.
Additional Information
Additional information about each of the mineral projects
that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d), as well as other information, can be found in
Technical Reports, which may be found at www.sedar.com. Other
important operating information can be found in the Company's AIF,
MD&A and Form 40-F.
Property/Project name and
location
|
Date of most recent Technical Report (NI 43-101)
filed on SEDAR
|
LaRonde, LaRonde Zone
5 & Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
June 16,
2014
|
Kittila, Kuotko and
Kylmakangas, Finland
|
March 4,
2010
|
Meadowbank Gold
Complex including the Amaruq Satellite Mine Development, Nunavut,
Canada
|
February 14,
2018
|
Meliadine, Nunavut,
Canada
|
February 11,
2015
|
APPENDIX – EXPLORATION DRILL COLLAR
COORDINATES
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)
|
MEX19-161W
|
5334662
|
717867
|
309
|
-70.7
|
184
|
1,896
|
MEX20-164WB**
|
5334701
|
717701
|
309
|
-75.1
|
203
|
2,075
|
MEX20-169AWC
|
5334652
|
717848
|
309
|
-75.0
|
186
|
2,097
|
MEX20-169AWD
|
5334652
|
717848
|
309
|
-75.0
|
186
|
2,046
|
MEX20-178WB
|
5334236
|
717392
|
314
|
-75.1
|
182
|
1,527
|
MEX20-180
|
5334351
|
718202
|
309
|
-75.0
|
135
|
1,995
|
MEX20-183
|
5334208
|
718319
|
310
|
-68.2
|
197
|
1,612
|
MEX20-185**
|
5334705
|
718008
|
308
|
-65.9
|
177
|
1,992
|
MEX20-187
|
5334597
|
718145
|
308
|
-62.5
|
192
|
1,815
|
MEX20-189A
|
5334595
|
718289
|
307
|
-66.2
|
183
|
1,854
|
MEX20-190
|
5334661
|
717867
|
309
|
-53.4
|
176
|
1,755
|
MEX20-191**
|
5334353
|
718366
|
309
|
-74.5
|
176
|
1,800
|
*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)
|
KLUB20-200W13
|
5336834
|
591663
|
316
|
132
|
-70
|
1,554
|
KLUB20-200W14
|
5336834
|
591663
|
316
|
132
|
-70
|
1,572
|
KLUB20-200W16
|
5336834
|
591663
|
316
|
132
|
-70
|
1,599
|
KLUB20-163W7
|
5336530
|
591772
|
317
|
137
|
-70
|
1,428
|
KLUB20-163W8
|
5336530
|
591772
|
317
|
137
|
-70
|
1,407
|
KLUB20-163W9
|
5336530
|
591772
|
317
|
137
|
-70
|
1,317
|
KLUB20-307W1
|
5337032
|
591770
|
319
|
129
|
-67
|
1,728
|
KLUB20-307W2
|
5337032
|
591770
|
319
|
129
|
-67
|
1,752
|
KLUB20-310AW2
|
5336729
|
591860
|
317
|
140
|
-68
|
1,752
|
KLUB20-310AW3
|
5336729
|
591860
|
317
|
140
|
-68
|
1,546
|
*Coordinate System
NAD 1983 UTM Zone 17N
|
Discovery deposit exploration drill collar
coordinates
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
M20-2970
|
6981808
|
554615
|
78
|
189
|
-69
|
306
|
M20-2971
|
6981877
|
554660
|
81
|
189
|
-68
|
381
|
M20-2972
|
6981877
|
554660
|
82
|
189
|
-73
|
396
|
M20-2977
|
6981801
|
554658
|
78
|
189
|
-55
|
294
|
M20-2978
|
6981802
|
554658
|
79
|
189
|
-66
|
308
|
M20-2982
|
6981825
|
554705
|
81
|
189
|
-70
|
348
|
M20-2983
|
6981819
|
554744
|
81
|
189
|
-71
|
369
|
M20-2984
|
6981972
|
554779
|
87
|
189
|
-73
|
540
|
M20-2987
|
6982031
|
554227
|
74
|
189
|
-67
|
248
|
M20-3001
|
6981617
|
554402
|
71
|
189
|
-53
|
75
|
M20-3105
|
6981978
|
554758
|
86
|
189
|
-72
|
492
|
M20-2970
|
6981808
|
554615
|
78
|
189
|
-69
|
306
|
M20-2971
|
6981877
|
554660
|
81
|
189
|
-68
|
381
|
*Coordinate System
NAD 1983 UTM Zone 17N
|
Kittila exploration drill collar
coordinates
|
Drill collar
coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
RUG20-520
|
7537954
|
2558695
|
-777
|
105
|
-10
|
358
|
RUG20-521
|
7537954
|
2558695
|
-777
|
98
|
-17
|
381
|
RUG20-523
|
7537953
|
2558695
|
-777
|
115
|
0
|
294
|
RUG20-524
|
7537953
|
2558695
|
-777
|
118
|
-14
|
301
|
ROU20-603
|
7537417
|
2537417
|
-279
|
105
|
-1
|
122
|
ROU20-604
|
7537416
|
2558696
|
-280
|
108
|
-20
|
249
|
ROU20-609
|
7537423
|
2558696
|
-278
|
145
|
25
|
155
|
ROD19-701L
|
7538198
|
2558629
|
-515
|
90
|
-80
|
848
|
RIE20-609
|
7538909
|
2558714
|
-816
|
87
|
-5
|
300
|
RIE20-610
|
7538909
|
2558714
|
-817
|
90
|
20
|
393
|
RIE20-611
|
7538909
|
2558714
|
-817
|
90
|
-35
|
469
|
RIE19-702K
|
7539299
|
2558637
|
-672
|
90
|
-75
|
1,085
|
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)
|
CBUG-20-065
|
3136502
|
758317
|
1,224
|
45
|
45
|
168
|
CBUG-20-072
|
3136753
|
758319
|
1,223
|
230
|
33
|
210
|
CBUG-20-073
|
3136557
|
758204
|
1,225
|
50
|
28
|
240
|
CBUG-20-075
|
3136753
|
758319
|
1,221
|
230
|
5
|
195
|
CBUG-20-079
|
3136719
|
758407
|
1,218
|
230
|
13
|
153
|
CBUG-20-084
|
3136389
|
758822
|
1,227
|
50
|
-20
|
147
|
CBUG-20-093
|
3136469
|
758726
|
1,218
|
230
|
-10
|
252
|
CBUG-20-094
|
3136336
|
758879
|
1,236
|
50
|
-65
|
231
|
CBUG-20-096
|
3136469
|
758725
|
1,219
|
230
|
20
|
231
|
CBUG-20-098
|
3136422
|
758783
|
1,224
|
50
|
35
|
213
|
CBUG-20-103
|
3136672
|
758502
|
1,219
|
230
|
50
|
162
|
CBUG-20-111
|
3136509
|
758660
|
1,218
|
230
|
10
|
150
|
RP-20-303
|
3131445
|
765527
|
1,994
|
200
|
-50
|
180
|
RP-20-307
|
3131604
|
765286
|
1,989
|
200
|
-70
|
291
|
RP-20-308
|
3131552
|
765412
|
2,000
|
200
|
-60
|
300
|
UG-20-167
|
3130561
|
763696
|
1,664
|
200
|
-42
|
318
|
UG-20-168
|
3130561
|
763696
|
1,664
|
208
|
-38
|
318
|
UG-20-169
|
3130561
|
763696
|
1,664
|
186
|
-42
|
315
|
UG-20-172
|
3130627
|
763517
|
1,708
|
200
|
-50
|
330
|
*Coordinates of drill
holes are in UTM NAD27 12N.
|
La India property
exploration drill hole collar coordinates
Drill hole collar
coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
CHP20-157
|
3181049
|
706476
|
1,542
|
227
|
-48
|
192
|
CHP20-165
|
3180109
|
707321
|
1,526
|
221
|
-45
|
201
|
CHP20-167
|
3180933
|
706367
|
1,579
|
47
|
-45
|
131
|
CHP20-168
|
3180090
|
707242
|
1,519
|
221
|
-50
|
149
|
CHP20-172
|
3180737
|
706696
|
1,572
|
230
|
-50
|
238
|
CHP20-173
|
3180999
|
706383
|
1,582
|
227
|
-48
|
113
|
CHP20-178
|
3180651
|
706677
|
1,598
|
226
|
-45
|
250
|
CHP20-180
|
3180164
|
707304
|
1,533
|
221
|
-47
|
244
|
CHP20-181
|
3180635
|
706717
|
1,577
|
226
|
-45
|
221
|
CHP20-182
|
3180638
|
706757
|
1,564
|
227
|
-46
|
217
|
CHP20-183
|
3180134
|
707220
|
1,525
|
227
|
-46
|
171
|
CHP20-185
|
3180948
|
706439
|
1,617
|
227
|
-45
|
113
|
CHP20-186
|
3180966
|
706468
|
1,597
|
227
|
-45
|
149
|
CHP20-187
|
3180136
|
707342
|
1,523
|
221
|
-55
|
241
|
CHP20-188
|
3180246
|
707309
|
1,562
|
221
|
-47
|
320
|
CHP20-190
|
3180599
|
706784
|
1,542
|
227
|
-45
|
201
|
*Coordinates 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-20-378
|
3392080
|
542728
|
1242
|
145
|
-50
|
320
|
SGE-20-382
|
3391954
|
542829
|
1153
|
135
|
-50
|
210
|
SGE-20-388
|
3391932
|
542352
|
1217
|
180
|
-50
|
201
|
SGE-20-394
|
3389254
|
543649
|
1429
|
260
|
-70
|
501
|
SGE-20-395
|
3389947
|
540112
|
1138
|
135
|
-50
|
300
|
SGE-20-397
|
3390037
|
540132
|
1155
|
140
|
-45
|
252
|
SGE-20-398
|
3389753
|
539865
|
1121
|
140
|
-50
|
165
|
SGE-20-402
|
3389819
|
539936
|
1160
|
140
|
-60
|
207
|
SGE-20-403
|
3392648
|
542238
|
1338
|
180
|
-63
|
591
|
SGE-20-404
|
3392554
|
542375
|
1325
|
170
|
-55
|
402
|
SGE-20-411
|
3392691
|
542378
|
1338
|
180
|
-66
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Operating margin(i) by
mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
123,528
|
|
$
|
111,865
|
|
$
|
374,040
|
|
$
|
337,192
|
LaRonde Zone 5
mine
|
19,965
|
|
12,954
|
|
63,345
|
|
39,153
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
2,033
|
Goldex mine
|
50,177
|
|
31,200
|
|
144,527
|
|
114,487
|
Meadowbank
Complex
|
44,344
|
|
3,303
|
|
81,767
|
|
40,804
|
Meliadine
mine
|
107,617
|
|
61,970
|
|
323,363
|
|
127,326
|
Canadian Malartic
mine(ii)
|
104,009
|
|
73,015
|
|
283,230
|
|
258,139
|
Kittila
mine
|
38,442
|
|
39,666
|
|
202,248
|
|
117,806
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
39,900
|
|
28,004
|
|
119,605
|
|
119,387
|
Creston Mascota
mine
|
4,573
|
|
4,041
|
|
42,674
|
|
42,222
|
La India
mine
|
21,040
|
|
12,112
|
|
79,162
|
|
48,638
|
Total operating
margin(i)
|
553,595
|
|
378,130
|
|
1,713,961
|
|
1,247,187
|
Gain on impairment
reversal
|
—
|
|
(345,821)
|
|
—
|
|
(345,821)
|
Amortization of
property, plant and mine development
|
174,954
|
|
150,319
|
|
631,101
|
|
546,057
|
Exploration,
corporate and other
|
84,647
|
|
69,687
|
|
315.295
|
|
308,209
|
Income before income
and mining taxes
|
293,994
|
|
503,945
|
|
767,565
|
|
738,742
|
Income and mining
taxes expense
|
88,777
|
|
172,250
|
|
255,958
|
|
265,576
|
Net income for the
period
|
$
|
205,217
|
|
$
|
331,695
|
|
$
|
511,607
|
|
$
|
473,166
|
Net income per
share — basic
|
$
|
0.85
|
|
$
|
1.39
|
|
$
|
2.12
|
|
$
|
2.00
|
Net income per
share — diluted
|
$
|
0.84
|
|
$
|
1.38
|
|
$
|
2.10
|
|
$
|
1.99
|
|
|
|
|
|
|
|
|
Cash flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
403,510
|
|
$
|
257,468
|
|
$
|
1,192,054
|
|
$
|
881,692
|
Cash used in
investing activities
|
$
|
(247,015)
|
|
$
|
(167,211)
|
|
$
|
(808,812)
|
|
$
|
(873,884)
|
Cash (used in)
provided by financing activities
|
$
|
(74,432)
|
|
$
|
(28,091)
|
|
$
|
(302,822)
|
|
$
|
10,610
|
|
|
|
|
|
|
|
|
Realized prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,876
|
|
$
|
1,489
|
|
$
|
1,788
|
|
$
|
1,406
|
Silver
(per ounce)
|
$
|
24.49
|
|
$
|
17.55
|
|
$
|
20.40
|
|
$
|
16.38
|
Zinc
(per tonne)
|
$
|
2,664
|
|
$
|
2,398
|
|
$
|
2,377
|
|
$
|
2,607
|
Copper
(per tonne)
|
$
|
7,298
|
|
$
|
5,948
|
|
$
|
6,298
|
|
$
|
5,892
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
89,551
|
|
97,470
|
|
288,239
|
|
343,154
|
LaRonde Zone 5
mine
|
16,178
|
|
15,234
|
|
61,674
|
|
59,830
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
5
|
Goldex mine
|
39,507
|
|
34,963
|
|
127,540
|
|
140,884
|
Meadowbank
Complex
|
68,734
|
|
61,660
|
|
209,413
|
|
193,489
|
Meliadine
mine
|
92,782
|
|
81,607
|
|
318,889
|
|
238,394
|
Canadian Malartic
mine(ii)
|
86,371
|
|
85,042
|
|
284,317
|
|
334,596
|
Kittila
mine
|
45,056
|
|
55,345
|
|
208,125
|
|
186,101
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
36,671
|
|
35,822
|
|
114,798
|
|
155,124
|
Creston Mascota
mine
|
4,202
|
|
6,919
|
|
38,599
|
|
48,380
|
La India
mine
|
22,393
|
|
20,616
|
|
84,974
|
|
82,190
|
Total gold
(ounces)
|
501,445
|
|
494,678
|
|
1,736,568
|
|
1,782,147
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
213
|
|
263
|
|
672
|
|
883
|
LaRonde Zone 5
mine
|
5
|
|
5
|
|
12
|
|
12
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
1
|
Goldex mine
|
1
|
|
1
|
|
2
|
|
2
|
Meadowbank
Complex
|
23
|
|
15
|
|
63
|
|
86
|
Meliadine
mine
|
8
|
|
7
|
|
27
|
|
18
|
Canadian Malartic
mine(ii)
|
88
|
|
114
|
|
348
|
|
421
|
Kittila
mine
|
2
|
|
3
|
|
11
|
|
13
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
373
|
|
519
|
|
1,607
|
|
2,161
|
Creston Mascota
mine
|
35
|
|
97
|
|
558
|
|
580
|
La India
mine
|
14
|
|
27
|
|
65
|
|
133
|
Total silver
(thousands of ounces)
|
762
|
|
1,051
|
|
3,365
|
|
4,310
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,984
|
|
2,445
|
|
6,259
|
|
13,161
|
Copper
(tonnes)
|
941
|
|
929
|
|
3,069
|
|
3,397
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Payable metal sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
81,979
|
|
104,197
|
|
281,992
|
|
360,698
|
LaRonde Zone 5
mine
|
18,169
|
|
17,236
|
|
61,974
|
|
56,998
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
3,777
|
Goldex mine
|
39,886
|
|
36,357
|
|
127,675
|
|
141,385
|
Meadowbank
Complex
|
70,852
|
|
53,710
|
|
210,935
|
|
191,396
|
Meliadine
mine
|
95,039
|
|
81,328
|
|
322,923
|
|
213,290
|
Canadian Malartic
mine(ii)(iv)
|
79,946
|
|
83,215
|
|
267,798
|
|
315,456
|
Kittila
mine
|
40,692
|
|
52,595
|
|
211,025
|
|
184,440
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
36,475
|
|
36,260
|
|
118,603
|
|
155,750
|
Creston Mascota
mine
|
5,145
|
|
7,310
|
|
39,610
|
|
50,605
|
La India
mine
|
20,163
|
|
19,225
|
|
82,003
|
|
81,539
|
Total gold
(ounces)
|
488,346
|
|
491,433
|
|
1,724,538
|
|
1,755,334
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
214
|
|
264
|
|
686
|
|
883
|
LaRonde Zone 5
mine
|
5
|
|
4
|
|
12
|
|
11
|
Lapa mine
|
—
|
|
—
|
|
—
|
|
2
|
Goldex mine
|
1
|
|
1
|
|
2
|
|
2
|
Meadowbank
Complex
|
32
|
|
15
|
|
65
|
|
84
|
Meliadine
mine
|
9
|
|
15
|
|
26
|
|
16
|
Canadian Malartic
mine(ii)(iv)
|
101
|
|
105
|
|
341
|
|
386
|
Kittila
mine
|
2
|
|
5
|
|
11
|
|
14
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
391
|
|
522
|
|
1,698
|
|
2,158
|
Creston Mascota
mine
|
46
|
|
100
|
|
574
|
|
575
|
La India
mine
|
9
|
|
26
|
|
66
|
|
140
|
Total silver
(thousands of ounces):
|
810
|
|
1,057
|
|
3,481
|
|
4,271
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
1,607
|
|
1,632
|
|
5,010
|
|
12,292
|
Copper
(tonnes)
|
941
|
|
945
|
|
3,062
|
|
3,390
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced — co-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
610
|
|
$
|
586
|
|
$
|
643
|
|
$
|
660
|
LaRonde Zone 5
mine
|
785
|
|
776
|
|
759
|
|
725
|
Goldex mine
|
592
|
|
640
|
|
634
|
|
584
|
Meadowbank
Complex
|
1,156
|
|
1,410
|
|
1,411
|
|
1,161
|
Meliadine
mine
|
654
|
|
715
|
|
776
|
|
750
|
Canadian Malartic
mine(ii)
|
681
|
|
655
|
|
750
|
|
626
|
Kittila
mine
|
910
|
|
757
|
|
806
|
|
737
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,019
|
|
1,004
|
|
1,050
|
|
867
|
Creston Mascota
mine
|
1,079
|
|
1,300
|
|
867
|
|
754
|
La India
mine
|
822
|
|
912
|
|
803
|
|
849
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
772
|
|
$
|
805
|
|
$
|
838
|
|
$
|
745
|
|
|
|
|
|
|
|
|
Total cash costs per ounce of gold
produced — by-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
372
|
|
$
|
422
|
|
$
|
466
|
|
$
|
464
|
LaRonde Zone 5
mine
|
776
|
|
771
|
|
755
|
|
722
|
Goldex mine
|
591
|
|
640
|
|
634
|
|
584
|
Meadowbank
Complex
|
1,142
|
|
1,405
|
|
1,404
|
|
1,152
|
Meliadine
mine
|
652
|
|
712
|
|
774
|
|
748
|
Canadian Malartic
mine(ii)
|
656
|
|
630
|
|
723
|
|
606
|
Kittila
mine
|
908
|
|
756
|
|
805
|
|
736
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
767
|
|
758
|
|
749
|
|
639
|
Creston Mascota
mine
|
928
|
|
1,073
|
|
605
|
|
554
|
La India
mine
|
813
|
|
892
|
|
788
|
|
823
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
701
|
|
$
|
745
|
|
$
|
775
|
|
$
|
673
|
|
|
|
|
|
|
|
|
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 months and
year ended December 31, 2020 includes 10,995 ounces of gold from
the IVR deposit at the Meadowbank Complex, which were produced
prior to the achievement of commercial production at the IVR
deposit on December 31, 2020. Payable production for the three
months and year ended December 31, 2020 include 4,509 and 6,491
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 year ended December
31, 2020 includes 18,930 ounces of gold from the Barnat deposit at
the Canadian Malartic mine, which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020. Payable production for the year ended December
31, 2019 includes 35,281 ounces of gold from the Amaruq satellite
deposit, which were produced prior to the achievement of commercial
production at the Amaruq satellite deposit on September 30, 2019.
Payable production for the year ended December 31, 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 on May 14, 2019. Payable production for the three months and
year ended December 31, 2019 include 3,137 ounces of gold from the
Barnat deposit at the Canadian Malartic mine, which were produced
during these periods as commercial production at the Barnat deposit
had not yet been achieved. Payable production for the year ended
December 31, 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
|
|
December 31, 2020
|
|
December 31, 2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
402,527
|
|
$
|
321,897
|
Short-term
investments
|
3,936
|
|
6,005
|
Trade
receivables
|
11,867
|
|
8,320
|
Inventories
|
630,474
|
|
580,068
|
Income taxes
recoverable
|
3,656
|
|
2,281
|
Fair value of
derivative financial instruments
|
35,516
|
|
4,535
|
Other current
assets
|
159,212
|
|
179,218
|
Total current
assets
|
1,247,188
|
|
1,102,324
|
Non-current
assets:
|
|
|
|
Goodwill
|
407,792
|
|
407,792
|
Property, plant and
mine development
|
7,325,418
|
|
7,003,665
|
Investments
|
375,103
|
|
91,236
|
Other
assets
|
259,254
|
|
184,868
|
Total
assets
|
$
|
9,614,755
|
|
$
|
8,789,885
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
363,801
|
|
$
|
345,572
|
Reclamation
provision
|
15,270
|
|
12,455
|
Interest
payable
|
12,184
|
|
16,752
|
Income taxes
payable
|
102,687
|
|
26,166
|
Lease
obligations
|
20,852
|
|
14,693
|
Current portion of
long-term debt
|
—
|
|
360,000
|
Fair value of
derivative financial instruments
|
904
|
|
—
|
Total current
liabilities
|
515,698
|
|
775,638
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,565,241
|
|
1,364,108
|
Lease
obligations
|
99,423
|
|
102,135
|
Reclamation
provision
|
651,783
|
|
427,346
|
Deferred income and
mining tax liabilities
|
1,036,061
|
|
948,142
|
Other
liabilities
|
63,336
|
|
61,002
|
Total
liabilities
|
3,931,542
|
|
3,678,371
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding — 243,301,195 common shares issued, less 416,881
shares held in trust
|
5,751,479
|
|
5,589,352
|
Stock
options
|
175,640
|
|
180,160
|
Contributed
surplus
|
37,254
|
|
37,254
|
Deficit
|
(366,412)
|
|
(647,330)
|
Other
reserves
|
85,252
|
|
(47,922)
|
Total
equity
|
5,683,213
|
|
5,111,514
|
Total liabilities and
equity
|
$
|
9,614,755
|
|
$
|
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
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
928,448
|
|
$
|
753,099
|
|
$
|
3,138,113
|
|
$
|
2,494,892
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES AND OTHER
INCOME
|
|
|
|
|
|
|
|
Production(i)
|
374,853
|
|
374,969
|
|
1,424,152
|
|
1,247,705
|
Exploration and
corporate development
|
39,024
|
|
23,750
|
|
113,492
|
|
104,779
|
Amortization of
property, plant and mine development
|
174,954
|
|
150,319
|
|
631,101
|
|
546,057
|
General and
administrative
|
33,908
|
|
35,432
|
|
116,288
|
|
120,987
|
Finance
costs
|
20,933
|
|
26,285
|
|
95,134
|
|
105,082
|
Gain on derivative
financial instruments
|
(58,576)
|
|
(6,828)
|
|
(107,873)
|
|
(17,124)
|
Environmental
remediation
|
26,838
|
|
2,719
|
|
27,540
|
|
2,804
|
Impairment
reversal
|
—
|
|
(345,821)
|
|
—
|
|
(345,821)
|
Foreign currency
translation loss (gain)
|
10,991
|
|
(140)
|
|
22,480
|
|
4,850
|
Other expenses
(income)
|
11,529
|
|
(11,531)
|
|
48,234
|
|
(13,169)
|
Income before income
and mining taxes
|
293,994
|
|
503,945
|
|
767,565
|
|
738,742
|
Income and mining
taxes expense
|
88,777
|
|
172,250
|
|
255,958
|
|
265,576
|
Net income for the
period
|
$
|
205,217
|
|
$
|
331,695
|
|
$
|
511,607
|
|
$
|
473,166
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
$
|
0.85
|
|
$
|
1.39
|
|
$
|
2.12
|
|
$
|
2.00
|
Net income per share
- diluted
|
$
|
0.84
|
|
$
|
1.38
|
|
$
|
2.10
|
|
$
|
1.99
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
242,577
|
|
239,274
|
|
241,508
|
|
236,934
|
Diluted
|
244,119
|
|
240,952
|
|
243,072
|
|
238,230
|
Note:
|
(i) Exclusive of amortization, which is
shown separately.
|
AGNICO EAGLE MINES LIMITED
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(thousands of United States dollars, IFRS
basis)
|
(Unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
205,217
|
|
$
|
331,695
|
|
$
|
511,607
|
|
$
|
473,166
|
Add (deduct)
adjusting items:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
174,954
|
|
150,319
|
|
631,101
|
|
546,057
|
Deferred income and
mining taxes
|
406
|
|
124,491
|
|
75,756
|
|
152,595
|
Unrealized gain on
currency and commodity derivatives
|
(21,752)
|
|
(4,293)
|
|
(30,079)
|
|
(12,744)
|
Unrealized gain on
warrants
|
(29,321)
|
|
(1,833)
|
|
(82,003)
|
|
(2,325)
|
Stock-based
compensation
|
15,762
|
|
14,994
|
|
54,486
|
|
54,261
|
Impairment
reversal
|
—
|
|
(345,821)
|
|
—
|
|
(345,821)
|
Foreign currency
translation loss (gain)
|
10,991
|
|
(140)
|
|
22,480
|
|
4,850
|
Other
|
30,553
|
|
(5,570)
|
|
27,781
|
|
(2,746)
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
(2,700)
|
|
278
|
|
(3,547)
|
|
1,735
|
Income
taxes
|
65,445
|
|
23,406
|
|
77,922
|
|
22,223
|
Inventories
|
10,737
|
|
(10,362)
|
|
(82,949)
|
|
(91,436)
|
Other current
assets
|
(4,239)
|
|
34,753
|
|
198
|
|
(2,742)
|
Accounts payable and
accrued liabilities
|
(39,787)
|
|
(37,666)
|
|
(5,522)
|
|
84,844
|
Interest
payable
|
(12,756)
|
|
(16,783)
|
|
(5,177)
|
|
(225)
|
Cash provided by
operating activities
|
403,510
|
|
257,468
|
|
1,192,054
|
|
881,692
|
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(224,738)
|
|
(195,721)
|
|
(759,342)
|
|
(882,664)
|
Proceeds from sale of
property, plant and mine development
|
209
|
|
829
|
|
936
|
|
3,692
|
Net sales of
short-term investments
|
1,699
|
|
759
|
|
2,069
|
|
75
|
Net proceeds from
sale of equity securities and other investments
|
—
|
|
35,911
|
|
8,759
|
|
43,733
|
Purchases of equity
securities and other investments
|
(8,185)
|
|
(3,767)
|
|
(45,234)
|
|
(33,498)
|
Payments for
financial assets at amortized cost
|
(16,000)
|
|
(5,222)
|
|
(16,000)
|
|
(5,222)
|
Cash used in
investing activities
|
(247,015)
|
|
(167,211)
|
|
(808,812)
|
|
(873,884)
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from Credit
Facility
|
—
|
|
—
|
|
1,075,000
|
|
220,000
|
Repayment of Credit
Facility
|
—
|
|
—
|
|
(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
|
(4,272)
|
|
(4,941)
|
|
(15,870)
|
|
(15,451)
|
Dividends
paid
|
(71,848)
|
|
(34,187)
|
|
(190,255)
|
|
(105,408)
|
Repurchase of common
shares for stock-based compensation plans
|
(3,692)
|
|
(274)
|
|
(39,622)
|
|
(24,669)
|
Proceeds on exercise
of stock options
|
1,367
|
|
7,384
|
|
90,656
|
|
140,627
|
Common shares
issued
|
4,013
|
|
3,927
|
|
13,866
|
|
15,511
|
Cash (used in)
provided by financing activities
|
(74,432)
|
|
(28,091)
|
|
(302,822)
|
|
10,610
|
Effect of exchange rate changes on cash and cash
equivalents
|
4,580
|
|
1,312
|
|
210
|
|
1,653
|
Net increase in cash and cash equivalents during the
period
|
86,643
|
|
63,478
|
|
80,630
|
|
20,071
|
Cash and cash equivalents, beginning of
period
|
315,884
|
|
258,419
|
|
321,897
|
|
301,826
|
Cash and cash equivalents, end of
period
|
$
|
402,527
|
|
$
|
321,897
|
|
$
|
402,527
|
|
$
|
321,897
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
33,255
|
|
$
|
42,440
|
|
$
|
95,119
|
|
$
|
101,523
|
Income and mining
taxes paid
|
$
|
26,712
|
|
$
|
20,330
|
|
$
|
110,851
|
|
$
|
90,694
|
AGNICO EAGLE MINES LIMITED
|
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE
MEASURES
|
(thousands of United States dollars, except
where noted)
|
(Unaudited)
|
Total Production Costs by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
(thousands of United States
dollars)
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
|
2019
|
|
LaRonde
mine
|
|
$
|
42,854
|
|
|
$
|
49,957
|
|
|
$
|
169,824
|
|
|
$
|
215,012
|
|
LaRonde Zone 5
mine
|
|
14,145
|
|
|
12,804
|
|
|
47,899
|
|
|
41,212
|
|
LaRonde
Complex
|
|
56,999
|
|
|
62,761
|
|
|
217,723
|
|
|
256,224
|
|
Lapa mine
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,844
|
|
Goldex
mine
|
|
24,648
|
|
|
22,944
|
|
|
82,654
|
|
|
82,533
|
|
Meadowbank
Complex
|
|
74,871
|
|
|
76,641
|
|
|
284,976
|
|
|
180,848
|
|
Meliadine
mine
|
|
63,177
|
|
|
59,669
|
|
|
245,700
|
|
|
142,932
|
|
Canadian Malartic
mine(i)
|
|
57,669
|
|
|
54,745
|
|
|
195,312
|
|
|
208,178
|
|
Kittila
mine
|
|
37,413
|
|
|
38,437
|
|
|
169,884
|
|
|
142,517
|
|
Pinos Altos
mine
|
|
37,445
|
|
|
34,618
|
|
|
124,678
|
|
|
130,190
|
|
Creston Mascota
mine
|
|
6,071
|
|
|
8,419
|
|
|
35,088
|
|
|
35,801
|
|
La India
mine
|
|
16,560
|
|
|
16,735
|
|
|
68,137
|
|
|
65,638
|
|
Production costs per
the
consolidated statements of income
|
|
$
|
374,853
|
|
|
$
|
374,969
|
|
|
$
|
1,424,152
|
|
|
$
|
1,247,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Production Costs to Total Cash
Costs per Ounce of Gold Produced (ii) by Mine and
Reconciliation of Production Costs to Minesite Costs per
Tonne(iii) by Mine
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
89,551
|
|
|
|
|
97,470
|
|
|
|
|
288,239
|
|
|
|
|
343,154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
42,854
|
|
|
$
|
479
|
|
|
$
|
49,957
|
|
|
$
|
513
|
|
|
$
|
169,824
|
|
|
$
|
589
|
|
|
$
|
215,012
|
|
|
$
|
627
|
|
Inventory and other
adjustments(iv)
|
|
11,765
|
|
|
131
|
|
|
7,195
|
|
|
73
|
|
|
15,590
|
|
|
54
|
|
|
11,595
|
|
|
33
|
|
Cash operating costs
(co-product basis)
|
|
$
|
54,619
|
|
|
$
|
610
|
|
|
$
|
57,152
|
|
|
$
|
586
|
|
|
$
|
185,414
|
|
|
$
|
643
|
|
|
$
|
226,607
|
|
|
$
|
660
|
|
By-product metal
revenues
|
|
(21,339)
|
|
|
(238)
|
|
|
(15,983)
|
|
|
(164)
|
|
|
(51,217)
|
|
|
(177)
|
|
|
(67,224)
|
|
|
(196)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
33,280
|
|
|
$
|
372
|
|
|
$
|
41,169
|
|
|
$
|
422
|
|
|
$
|
134,197
|
|
|
$
|
466
|
|
|
$
|
159,383
|
|
|
$
|
464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
478
|
|
|
|
|
505
|
|
|
|
|
1,706
|
|
|
|
|
2,057
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
42,854
|
|
|
$
|
90
|
|
|
$
|
49,957
|
|
|
$
|
99
|
|
|
$
|
169,824
|
|
|
$
|
100
|
|
|
$
|
215,012
|
|
|
$
|
105
|
|
Production costs
(C$)
|
|
C$
|
56,901
|
|
|
C$
|
119
|
|
|
C$
|
66,032
|
|
|
C$
|
131
|
|
|
C$
|
226,605
|
|
|
C$
|
133
|
|
|
C$
|
285,423
|
|
|
C$
|
139
|
|
Inventory and other
adjustments (C$)(v)
|
|
4,654
|
|
|
10
|
|
|
(1,543)
|
|
|
(3)
|
|
|
(9,693)
|
|
|
(6)
|
|
|
(27,629)
|
|
|
(14)
|
|
Minesite operating
costs (C$)
|
|
C$
|
61,555
|
|
|
C$
|
129
|
|
|
C$
|
64,489
|
|
|
C$
|
128
|
|
|
C$
|
216,912
|
|
|
C$
|
127
|
|
|
C$
|
257,794
|
|
|
C$
|
125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5 Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
|
16,178
|
|
|
|
|
15,234
|
|
|
|
|
61,674
|
|
|
|
|
59,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
14,145
|
|
|
$
|
874
|
|
|
$
|
12,804
|
|
|
$
|
840
|
|
|
$
|
47,899
|
|
|
$
|
777
|
|
|
$
|
41,212
|
|
|
$
|
689
|
|
Inventory and other
adjustments(iv)
|
|
(1,449)
|
|
|
(89)
|
|
|
(977)
|
|
|
(64)
|
|
|
(1,096)
|
|
|
(18)
|
|
|
2,169
|
|
|
36
|
|
Cash operating costs
(co-product basis)
|
|
$
|
12,696
|
|
|
$
|
785
|
|
|
$
|
11,827
|
|
|
$
|
776
|
|
|
$
|
46,803
|
|
|
$
|
759
|
|
|
$
|
43,381
|
|
|
$
|
725
|
|
By-product metal
revenues
|
|
(140)
|
|
|
(9)
|
|
|
(77)
|
|
|
(5)
|
|
|
(261)
|
|
|
(4)
|
|
|
(185)
|
|
|
(3)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
12,556
|
|
|
$
|
776
|
|
|
$
|
11,750
|
|
|
$
|
771
|
|
|
$
|
46,542
|
|
|
$
|
755
|
|
|
$
|
43,196
|
|
|
$
|
722
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5 Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
261
|
|
|
|
|
227
|
|
|
|
|
968
|
|
|
|
|
870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
14,145
|
|
|
$
|
54
|
|
|
$
|
12,804
|
|
|
$
|
56
|
|
|
$
|
47,899
|
|
|
$
|
49
|
|
|
$
|
41,212
|
|
|
$
|
47
|
|
Production costs
(C$)
|
|
C$
|
18,503
|
|
|
C$
|
71
|
|
|
C$
|
16,901
|
|
|
C$
|
74
|
|
|
C$
|
63,944
|
|
|
C$
|
66
|
|
|
C$
|
54,644
|
|
|
C$
|
63
|
|
Inventory and other
adjustments (C$)(v)
|
|
(1,464)
|
|
|
(6)
|
|
|
(1,338)
|
|
|
(5)
|
|
|
(854)
|
|
|
(1)
|
|
|
2,855
|
|
|
3
|
|
Minesite operating
costs (C$)
|
|
C$
|
17,039
|
|
|
C$
|
65
|
|
|
C$
|
15,563
|
|
|
C$
|
69
|
|
|
C$
|
63,090
|
|
|
C$
|
65
|
|
|
C$
|
57,499
|
|
|
C$
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Complex
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
105,729
|
|
|
|
|
112,704
|
|
|
|
|
349,913
|
|
|
|
|
402,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
56,999
|
|
|
$
|
539
|
|
|
$
|
62,761
|
|
|
$
|
557
|
|
|
$
|
217,723
|
|
|
$
|
622
|
|
|
$
|
256,224
|
|
|
$
|
636
|
|
Inventory and other
adjustments(iv)
|
|
10,316
|
|
|
98
|
|
|
6,218
|
|
|
55
|
|
|
14,494
|
|
|
42
|
|
|
13,764
|
|
|
34
|
|
Cash operating costs
(co-product basis)
|
|
$
|
67,315
|
|
|
$
|
637
|
|
|
$
|
68,979
|
|
|
$
|
612
|
|
|
$
|
232,217
|
|
|
$
|
664
|
|
|
$
|
269,988
|
|
|
$
|
670
|
|
By-product metal
revenues
|
|
(21,479)
|
|
|
(204)
|
|
|
(16,060)
|
|
|
(142)
|
|
|
(51,478)
|
|
|
(147)
|
|
|
(67,409)
|
|
|
(167)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
45,836
|
|
|
$
|
433
|
|
|
$
|
52,919
|
|
|
$
|
470
|
|
|
$
|
180,739
|
|
|
$
|
517
|
|
|
$
|
202,579
|
|
|
$
|
503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Complex
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
739
|
|
|
|
|
732
|
|
|
|
|
2,674
|
|
|
|
|
2,927
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
56,999
|
|
|
$
|
77
|
|
|
$
|
62,761
|
|
|
$
|
86
|
|
|
$
|
217,723
|
|
|
$
|
81
|
|
|
$
|
256,224
|
|
|
$
|
88
|
|
Production costs
(C$)
|
|
C$
|
75,404
|
|
|
C$
|
102
|
|
|
C$
|
82,933
|
|
|
C$
|
113
|
|
|
C$
|
290,549
|
|
|
C$
|
109
|
|
|
C$
|
340,067
|
|
|
C$
|
116
|
|
Inventory and other
adjustments (C$)(v)
|
|
3,190
|
|
|
4
|
|
|
(2,881)
|
|
|
(4)
|
|
|
(10,547)
|
|
|
(4)
|
|
|
(24,774)
|
|
|
(8)
|
|
Minesite operating
costs (C$)
|
|
C$
|
78,594
|
|
|
C$
|
106
|
|
|
C$
|
80,052
|
|
|
C$
|
109
|
|
|
C$
|
280,002
|
|
|
C$
|
105
|
|
|
C$
|
315,293
|
|
|
C$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
39,507
|
|
|
|
|
34,963
|
|
|
|
|
127,540
|
|
|
|
|
140,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
24,648
|
|
|
$
|
624
|
|
|
$
|
22,944
|
|
|
$
|
656
|
|
|
$
|
82,654
|
|
|
$
|
648
|
|
|
$
|
82,533
|
|
|
$
|
586
|
|
Inventory and other
adjustments(iv)
|
|
(1,258)
|
|
|
(32)
|
|
|
(551)
|
|
|
(16)
|
|
|
(1,756)
|
|
|
(14)
|
|
|
(289)
|
|
|
(2)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
23,390
|
|
|
$
|
592
|
|
|
$
|
22,393
|
|
|
$
|
640
|
|
|
$
|
80,898
|
|
|
$
|
634
|
|
|
$
|
82,244
|
|
|
$
|
584
|
|
By-product metal
revenues
|
|
(20)
|
|
|
(1)
|
|
|
(12)
|
|
|
—
|
|
|
(37)
|
|
|
—
|
|
|
(33)
|
|
|
—
|
|
Cash operating costs
(by-product basis)
|
|
$
|
23,370
|
|
|
$
|
591
|
|
|
$
|
22,381
|
|
|
$
|
640
|
|
|
$
|
80,861
|
|
|
$
|
634
|
|
|
$
|
82,211
|
|
|
$
|
584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
756
|
|
|
|
|
684
|
|
|
|
|
2,655
|
|
|
|
|
2,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
24,648
|
|
|
$
|
33
|
|
|
$
|
22,944
|
|
|
$
|
34
|
|
|
$
|
82,654
|
|
|
$
|
31
|
|
|
$
|
82,533
|
|
|
$
|
30
|
|
Production costs
(C$)
|
|
C$
|
32,064
|
|
|
C$
|
42
|
|
|
C$
|
30,240
|
|
|
C$
|
44
|
|
|
C$
|
109,727
|
|
|
C$
|
41
|
|
|
C$
|
109,373
|
|
|
C$
|
39
|
|
Inventory and other
adjustments (C$)(v)
|
|
(487)
|
|
|
—
|
|
|
(700)
|
|
|
(1)
|
|
|
(287)
|
|
|
—
|
|
|
(245)
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
31,577
|
|
|
C$
|
42
|
|
|
C$
|
29,540
|
|
|
C$
|
43
|
|
|
C$
|
109,440
|
|
|
C$
|
41
|
|
|
C$
|
109,128
|
|
|
C$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Complex
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)(vi)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
57,739
|
|
|
|
|
61,660
|
|
|
|
|
198,418
|
|
|
|
|
158,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
74,871
|
|
|
$
|
1,297
|
|
|
$
|
76,641
|
|
|
$
|
1,243
|
|
|
$
|
284,976
|
|
|
$
|
1,436
|
|
|
$
|
180,848
|
|
|
$
|
1,143
|
|
Inventory and other
adjustments(iv)
|
|
(8,123)
|
|
|
(141)
|
|
|
10,290
|
|
|
167
|
|
|
(5,028)
|
|
|
(25)
|
|
|
2,859
|
|
|
18
|
|
Cash operating costs
(co-product basis)
|
|
$
|
66,748
|
|
|
$
|
1,156
|
|
|
$
|
86,931
|
|
|
$
|
1,410
|
|
|
$
|
279,948
|
|
|
$
|
1,411
|
|
|
$
|
183,707
|
|
|
$
|
1,161
|
|
By-product metal
revenues
|
|
(777)
|
|
|
(14)
|
|
|
(273)
|
|
|
(5)
|
|
|
(1,342)
|
|
|
(7)
|
|
|
(1,391)
|
|
|
(9)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
65,971
|
|
|
$
|
1,142
|
|
|
$
|
86,658
|
|
|
$
|
1,405
|
|
|
$
|
278,606
|
|
|
$
|
1,404
|
|
|
$
|
182,316
|
|
|
$
|
1,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Complex
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)(vii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
684
|
|
|
|
|
709
|
|
|
|
|
2,482
|
|
|
|
|
2,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
74,871
|
|
|
$
|
109
|
|
|
$
|
76,641
|
|
|
$
|
108
|
|
|
$
|
284,976
|
|
|
$
|
115
|
|
|
$
|
180,848
|
|
|
$
|
76
|
|
Production costs
(C$)
|
|
C$
|
99,476
|
|
|
C$
|
145
|
|
|
C$
|
101,041
|
|
|
C$
|
143
|
|
|
C$
|
382,592
|
|
|
C$
|
154
|
|
|
C$
|
240,014
|
|
|
C$
|
101
|
|
Inventory and other
adjustments (C$)(v)
|
|
(9,413)
|
|
|
(13)
|
|
|
13,990
|
|
|
19
|
|
|
(14,407)
|
|
|
(6)
|
|
|
6,292
|
|
|
2
|
|
Minesite operating
costs (C$)
|
|
C$
|
90,063
|
|
|
C$
|
132
|
|
|
C$
|
115,031
|
|
|
C$
|
162
|
|
|
C$
|
368,185
|
|
|
C$
|
148
|
|
|
C$
|
246,306
|
|
|
C$
|
103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)(viii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
88,273
|
|
|
|
|
81,607
|
|
|
|
|
312,398
|
|
|
|
|
191,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
63,177
|
|
|
$
|
716
|
|
|
$
|
59,669
|
|
|
$
|
731
|
|
|
$
|
245,700
|
|
|
$
|
786
|
|
|
$
|
142,932
|
|
|
$
|
748
|
|
Inventory and other
adjustments(iv)
|
|
(5,397)
|
|
|
(62)
|
|
|
(1,290)
|
|
|
(16)
|
|
|
(3,353)
|
|
|
(10)
|
|
|
389
|
|
|
2
|
|
Cash operating costs
(co-product basis)
|
|
$
|
57,780
|
|
|
$
|
654
|
|
|
$
|
58,379
|
|
|
$
|
715
|
|
|
$
|
242,347
|
|
|
$
|
776
|
|
|
$
|
143,321
|
|
|
$
|
750
|
|
By-product metal
revenues
|
|
(219)
|
|
|
(2)
|
|
|
(268)
|
|
|
(3)
|
|
|
(527)
|
|
|
(2)
|
|
|
(286)
|
|
|
(2)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
57,561
|
|
|
$
|
652
|
|
|
$
|
58,111
|
|
|
$
|
712
|
|
|
$
|
241,820
|
|
|
$
|
774
|
|
|
$
|
143,035
|
|
|
$
|
748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)(ix)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
334
|
|
|
|
|
326
|
|
|
|
|
1,346
|
|
|
|
|
773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
63,177
|
|
|
$
|
189
|
|
|
$
|
59,669
|
|
|
$
|
183
|
|
|
$
|
245,700
|
|
|
$
|
183
|
|
|
142,932
|
|
|
$
|
185
|
|
Production costs
(C$)
|
|
C$
|
82,993
|
|
|
C$
|
248
|
|
|
C$
|
78,595
|
|
|
C$
|
241
|
|
|
C$
|
329,036
|
|
|
C$
|
244
|
|
|
C$
|
188,680
|
|
|
C$
|
244
|
|
Inventory and other
adjustments (C$)(v)
|
|
(4,783)
|
|
|
(14)
|
|
|
(1,350)
|
|
|
(4)
|
|
|
(5,458)
|
|
|
(4)
|
|
|
1,409
|
|
|
2
|
|
Minesite operating
costs (C$)
|
|
C$
|
78,210
|
|
|
C$
|
234
|
|
|
C$
|
77,245
|
|
|
C$
|
237
|
|
|
C$
|
323,578
|
|
|
C$
|
240
|
|
|
C$
|
190,089
|
|
|
C$
|
246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(i)(ii)*
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
86,371
|
|
|
|
|
81,905
|
|
|
|
|
265,387
|
|
|
|
|
331,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
57,669
|
|
|
$
|
668
|
|
|
$
|
54,745
|
|
|
$
|
668
|
|
|
$
|
195,312
|
|
|
$
|
736
|
|
|
$
|
208,178
|
|
|
$
|
628
|
|
Inventory and other
adjustments(iv)
|
|
1,178
|
|
|
13
|
|
|
(1,070)
|
|
|
(13)
|
|
|
3,855
|
|
|
14
|
|
|
(723)
|
|
|
(2)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
58,847
|
|
|
$
|
681
|
|
|
$
|
53,675
|
|
|
$
|
655
|
|
|
$
|
199,167
|
|
|
$
|
750
|
|
|
$
|
207,455
|
|
|
$
|
626
|
|
By-product metal
revenues
|
|
(2,183)
|
|
|
(25)
|
|
|
(2,038)
|
|
|
(25)
|
|
|
(7,198)
|
|
|
(27)
|
|
|
(6,711)
|
|
|
(20)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
56,664
|
|
|
$
|
656
|
|
|
$
|
51,637
|
|
|
$
|
630
|
|
|
$
|
191,969
|
|
|
$
|
723
|
|
|
$
|
200,744
|
|
|
$
|
606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per
Tonne(i)(iii)(xi)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
2,869
|
|
|
|
|
2,587
|
|
|
|
|
9,669
|
|
|
|
|
10,391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
57,669
|
|
|
$
|
20
|
|
|
$
|
54,745
|
|
|
$
|
21
|
|
|
$
|
195,312
|
|
|
$
|
20
|
|
|
$
|
208,178
|
|
|
$
|
20
|
|
Production costs
(C$)
|
|
C$
|
75,328
|
|
|
C$
|
26
|
|
|
C$
|
70,604
|
|
|
C$
|
27
|
|
|
C$
|
260,019
|
|
|
C$
|
27
|
|
|
C$
|
274,786
|
|
|
C$
|
26
|
|
Inventory and other
adjustments (C$)(v)
|
|
1,068
|
|
|
1
|
|
|
(3,132)
|
|
|
(1)
|
|
|
(34)
|
|
|
—
|
|
|
(2,201)
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
76,396
|
|
|
C$
|
27
|
|
|
C$
|
67,472
|
|
|
C$
|
26
|
|
|
C$
|
259,985
|
|
|
C$
|
27
|
|
|
C$
|
272,585
|
|
|
C$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
45,056
|
|
|
|
|
55,345
|
|
|
|
|
208,125
|
|
|
|
|
186,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
37,413
|
|
|
$
|
830
|
|
|
$
|
38,437
|
|
|
$
|
694
|
|
|
$
|
169,884
|
|
|
$
|
816
|
|
|
$
|
142,517
|
|
|
$
|
766
|
|
Inventory and other
adjustments(iv)
|
|
3,577
|
|
|
80
|
|
|
3,480
|
|
|
63
|
|
|
(2,121)
|
|
|
(10)
|
|
|
(5,314)
|
|
|
(29)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
40,990
|
|
|
$
|
910
|
|
|
$
|
41,917
|
|
|
$
|
757
|
|
|
$
|
167,763
|
|
|
$
|
806
|
|
|
$
|
137,203
|
|
|
$
|
737
|
|
By-product metal
revenues
|
|
(69)
|
|
|
(2)
|
|
|
(89)
|
|
|
(1)
|
|
|
(238)
|
|
|
(1)
|
|
|
(238)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
40,921
|
|
|
$
|
908
|
|
|
$
|
41,828
|
|
|
$
|
756
|
|
|
$
|
167,525
|
|
|
$
|
805
|
|
|
$
|
136,965
|
|
|
$
|
736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
353
|
|
|
|
|
468
|
|
|
|
|
1,702
|
|
|
|
|
1,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
37,413
|
|
|
$
|
106
|
|
|
$
|
38,437
|
|
|
$
|
82
|
|
|
$
|
169,884
|
|
|
$
|
100
|
|
|
$
|
142,517
|
|
|
$
|
90
|
|
Production costs
(€)
|
|
€
|
31,804
|
|
|
€
|
90
|
|
|
€
|
34,598
|
|
|
€
|
74
|
|
|
€
|
147,993
|
|
|
€
|
87
|
|
|
€
|
127,355
|
|
|
€
|
80
|
|
Inventory and other
adjustments (€)(v)
|
|
3,451
|
|
|
10
|
|
|
2,547
|
|
|
5
|
|
|
(1,667)
|
|
|
(1)
|
|
|
(5,882)
|
|
|
(4)
|
|
Minesite operating
costs (€)
|
|
€
|
35,255
|
|
|
€
|
100
|
|
|
€
|
37,145
|
|
|
€
|
79
|
|
|
€
|
146,326
|
|
|
€
|
86
|
|
|
€
|
121,473
|
|
|
€
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
36,671
|
|
|
|
|
35,822
|
|
|
|
|
114,798
|
|
|
|
|
155,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
37,445
|
|
|
$
|
1,021
|
|
|
$
|
34,618
|
|
|
$
|
966
|
|
|
$
|
124,678
|
|
|
$
|
1,086
|
|
|
$
|
130,190
|
|
|
$
|
839
|
|
Inventory and other
adjustments(iv)
|
|
(59)
|
|
|
(2)
|
|
|
1,344
|
|
|
38
|
|
|
(4,089)
|
|
|
(36)
|
|
|
4,229
|
|
|
28
|
|
Cash operating costs
(co-product basis)
|
|
$
|
37,386
|
|
|
$
|
1,019
|
|
|
$
|
35,962
|
|
|
$
|
1,004
|
|
|
$
|
120,589
|
|
|
$
|
1,050
|
|
|
$
|
134,419
|
|
|
$
|
867
|
|
By-product metal
revenues
|
|
(9,266)
|
|
|
(252)
|
|
|
(8,822)
|
|
|
(246)
|
|
|
(34,646)
|
|
|
(301)
|
|
|
(35,322)
|
|
|
(228)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
28,120
|
|
|
$
|
767
|
|
|
$
|
27,140
|
|
|
$
|
758
|
|
|
$
|
85,943
|
|
|
$
|
749
|
|
|
$
|
99,097
|
|
|
$
|
639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
544
|
|
|
|
|
512
|
|
|
|
|
1,796
|
|
|
|
|
2,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
37,445
|
|
|
$
|
69
|
|
|
$
|
34,618
|
|
|
$
|
68
|
|
|
$
|
124,678
|
|
|
$
|
69
|
|
|
$
|
130,190
|
|
|
$
|
65
|
|
Inventory and other
adjustments(v)
|
|
(228)
|
|
|
(1)
|
|
|
993
|
|
|
2
|
|
|
(6,737)
|
|
|
(3)
|
|
|
3,074
|
|
|
1
|
|
Minesite operating
costs
|
|
$
|
37,217
|
|
|
$
|
68
|
|
|
$
|
35,611
|
|
|
$
|
70
|
|
|
$
|
117,941
|
|
|
$
|
66
|
|
|
$
|
133,264
|
|
|
$
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
4,202
|
|
|
|
|
6,919
|
|
|
|
|
38,599
|
|
|
|
|
48,380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
6,071
|
|
|
$
|
1,445
|
|
|
$
|
8,419
|
|
|
$
|
1,217
|
|
|
$
|
35,088
|
|
|
$
|
909
|
|
|
$
|
35,801
|
|
|
$
|
740
|
|
Inventory and other
adjustments(iv)
|
|
(1,534)
|
|
|
(366)
|
|
|
578
|
|
|
83
|
|
|
(1,622)
|
|
|
(42)
|
|
|
678
|
|
|
14
|
|
Cash operating costs
(co-product basis)
|
|
$
|
4,537
|
|
|
$
|
1,079
|
|
|
$
|
8,997
|
|
|
$
|
1,300
|
|
|
$
|
33,466
|
|
|
$
|
867
|
|
|
$
|
36,479
|
|
|
$
|
754
|
|
By-product metal
revenues
|
|
(635)
|
|
|
(151)
|
|
|
(1,574)
|
|
|
(227)
|
|
|
(10,116)
|
|
|
(262)
|
|
|
(9,671)
|
|
|
(200)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
3,902
|
|
|
$
|
928
|
|
|
$
|
7,423
|
|
|
$
|
1,073
|
|
|
$
|
23,350
|
|
|
$
|
605
|
|
|
$
|
26,808
|
|
|
$
|
554
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)(xii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
—
|
|
|
|
|
94
|
|
|
|
|
526
|
|
|
|
|
1,067
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
6,071
|
|
|
$
|
—
|
|
|
$
|
8,419
|
|
|
$
|
90
|
|
|
$
|
35,088
|
|
|
$
|
67
|
|
|
$
|
35,801
|
|
|
$
|
34
|
|
Inventory and other
adjustments(v)
|
|
(6,071)
|
|
|
—
|
|
|
469
|
|
|
5
|
|
|
(6,836)
|
|
|
(13)
|
|
|
(122)
|
|
|
(1)
|
|
Minesite operating
costs
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,888
|
|
|
$
|
95
|
|
|
$
|
28,252
|
|
|
$
|
54
|
|
|
$
|
35,679
|
|
|
$
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Ounce of Gold
Produced(ii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
|
(thousands)
|
|
|
($ per
ounce)
|
|
Gold production
(ounces)
|
|
|
|
22,393
|
|
|
|
|
20,616
|
|
|
|
|
84,974
|
|
|
|
|
82,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
16,560
|
|
|
$
|
740
|
|
|
$
|
16,735
|
|
|
$
|
812
|
|
|
$
|
68,137
|
|
|
$
|
802
|
|
|
$
|
65,638
|
|
|
$
|
799
|
|
Inventory and other
adjustments(iv)
|
|
1,840
|
|
|
82
|
|
|
2,060
|
|
|
100
|
|
|
141
|
|
|
1
|
|
|
4,166
|
|
|
50
|
|
Cash operating costs
(co-product basis)
|
|
$
|
18,400
|
|
|
$
|
822
|
|
|
$
|
18,795
|
|
|
$
|
912
|
|
|
$
|
68,278
|
|
|
$
|
803
|
|
|
$
|
69,804
|
|
|
$
|
849
|
|
By-product metal
revenues
|
|
(196)
|
|
|
(9)
|
|
|
(413)
|
|
|
(20)
|
|
|
(1,317)
|
|
|
(15)
|
|
|
(2,184)
|
|
|
(26)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
18,204
|
|
|
$
|
813
|
|
|
$
|
18,382
|
|
|
$
|
892
|
|
|
$
|
66,961
|
|
|
$
|
788
|
|
|
$
|
67,620
|
|
|
$
|
823
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Year Ended
|
|
Year Ended
|
Per Tonne(iii)
|
|
December 31, 2020
|
|
December 31, 2019
|
|
December 31, 2020
|
|
December 31, 2019
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
|
(thousands)
|
|
|
($ per
tonne)
|
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
1,657
|
|
|
|
|
1,404
|
|
|
|
|
5,526
|
|
|
|
|
5,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
16,560
|
|
|
$
|
10
|
|
|
$
|
16,735
|
|
|
$
|
12
|
|
|
$
|
68,137
|
|
|
$
|
12
|
|
|
$
|
65,638
|
|
|
$
|
12
|
|
Inventory and other
adjustments(v)
|
|
1,438
|
|
|
1
|
|
|
1,893
|
|
|
1
|
|
|
(895)
|
|
|
—
|
|
|
2,591
|
|
|
1
|
|
Minesite operating
costs
|
|
$
|
17,998
|
|
|
$
|
11
|
|
|
$
|
18,628
|
|
|
$
|
13
|
|
|
$
|
67,242
|
|
|
$
|
12
|
|
|
$
|
68,229
|
|
|
$
|
13
|
|
|
Notes:
|
(i) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(ii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's use of total
cash costs per ounce.
|
(iii) Minesite costs
per tonne is not a recognized measure under IFRS and this data may
not be comparable to data reported by other gold producers. See
"Note Regarding Certain Measures of Performance" for more
information on the Company's use of minesite costs per
tonne.
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
(v) This inventory
and other adjustments reflect production costs associated with the
portion of production still in inventory and smelting, refining and
marketing charges associated with production.
|
(vi) The Meadowbank
Complex's cost calculations per ounce of gold produced for the
three months and year ended December 31, 2020 exclude 10,995
ounces of payable gold production, which were produced prior to the
achievement of commercial production at the IVR deposit on December
31, 2020. The Meadowbank Complex's cost calculations per ounce of
gold produced for the year ended December 31, 2019 exclude
35,281 ounces of payable gold production, which were produced prior
to the achievement of commercial production at the Amaruq satellite
deposit on September 30, 2019.
|
(vii) The Meadowbank
Complex's cost calculations per tonne for the three months and year
ended December 31, 2020 exclude 121,317 tonnes of ore from the
IVR deposit, which were processed prior to the achievement of
commercial production at the IVR deposit on December 31, 2020. The
Meadowbank Complex's cost calculations per tonne for the year ended
December 31, 2019 exclude 369,519 tonnes, which were processed
prior to the achievement of commercial production at the Amaruq
satellite deposit on September 30, 2019.
|
(viii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
months and year ended December 31, 2020 exclude 4,509 and
6,491 ounces of payable gold production, respectively, which were
produced during these periods as commercial production at the
Tiriganiaq open pit deposit has not yet been achieved. The
Meliadine mine's cost calculations per ounce of gold produced for
the year ended December 31, 2019 exclude 47,281 ounces of
payable gold production, which were produced prior to the
achievement of commercial production on May 14, 2019.
|
(ix) The Meliadine
mine's cost calculations per tonne for the three months and year
ended December 31, 2020 exclude 36,130 and 49,504 tonnes of
ore from the Tiriganiaq open pit deposit, respectively, which were
processed during these periods as commercial production at the
Tiriganiaq open pit deposit has not yet been achieved. The
Meliadine mine's cost calculations per tonne for the year ended
December 31, 2019 exclude 263,749 tonnes, which were processed
prior to the achievement of commercial production on May 14,
2019.
|
* The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the year ended December 31, 2020 exclude 18,930 ounces of
payable gold production, which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020. The Canadian Malartic mine's cost calculations
per ounce of gold produced for the three months and year ended
December 31, 2019 exclude 3,137 ounces of payable gold
production, which were produced during these periods as commercial
production at the Barnat deposit had not yet been
achieved.
|
(xi) The Canadian
Malartic mine's cost calculations per tonne for the year ended
December 31, 2020 exclude 731,309 tonnes of ore from the
Barnat deposit, which were processed prior to the achievement of
commercial production at the Barnat deposit on September 30, 2020.
The Canadian Malartic mine's cost calculations per tonne for the
three months and year ended December 31, 2019 exclude 133,615
tonnes, which were processed during this period as commercial
production at the Barnat deposit had not yet been
achieved.
|
(xii) The Creston
Mascota mine's cost calculation per tonne for the year ended
December 31, 2020 exclude approximately $6.1 million of production
costs incurred during the three months ended December 31, 2020
following the cessation of mining activities at the Bravo pit
during the third quarter of 2020.
|
Reconciliation of Production Costs to All-in
Sustaining Costs per Ounce of
Gold Produced
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Production costs per
the consolidated statements of income
(thousands of United States dollars)
|
$
|
374,853
|
|
$
|
374,969
|
|
$
|
1,424,152
|
|
$
|
1,247,705
|
Adjusted gold
production (ounces)(i)(ii)(iii)(iv)
|
485,941
|
|
491,541
|
|
1,700,152
|
|
1,696,443
|
Production costs per
ounce of adjusted gold production
|
$
|
771
|
|
$
|
763
|
|
$
|
838
|
|
$
|
735
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory and other
adjustments(v)
|
1
|
|
42
|
|
—
|
|
10
|
Total cash costs per
ounce of gold produced (co-product basis)(vi)
|
$
|
772
|
|
$
|
805
|
|
$
|
838
|
|
$
|
745
|
By-product metal
revenues
|
(71)
|
|
(60)
|
|
(63)
|
|
(72)
|
Total cash costs per
ounce of gold produced (by-product basis)(vi)
|
$
|
701
|
|
$
|
745
|
|
$
|
775
|
|
$
|
673
|
Adjustments:
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
206
|
|
213
|
|
199
|
|
185
|
General and
administrative expenses (including stock options)
|
70
|
|
72
|
|
68
|
|
71
|
Non-cash reclamation
provision, sustaining leases and other
|
8
|
|
9
|
|
9
|
|
9
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
985
|
|
$
|
1,039
|
|
$
|
1,051
|
|
$
|
938
|
By-product metal
revenues
|
71
|
|
60
|
|
63
|
|
72
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,056
|
|
$
|
1,099
|
|
$
|
1,114
|
|
$
|
1,010
|
Notes:
|
|
|
|
|
|
|
|
(i) Adjusted gold
production for the three months and year ended December 31,
2020 exclude 10,995 ounces of payable gold from the IVR deposit at
the Meadowbank Complex, which were produced prior to the
achievement of commercial production at the IVR deposit on December
31, 2020. Adjusted gold production for the year ended
December 31, 2019 excludes 35,281 ounces of payable gold at
the Meadowbank Complex, which were produced prior to the
achievement of commercial production at the Amaruq satellite
deposit on September 30, 2019.
|
(ii) Adjusted gold
production for the three months and year ended December 31,
2020 exclude 4,509 and 6,491 ounces of payable gold from the
Tiriganiaq open pit deposit at the Meliadine mine, respectively,
which were produced prior to the achievement of commercial
production at the Tiriganiaq open pit deposit. Adjusted gold
production for the year ended December 31, 2019 excludes
47,281 ounces of payable gold at the Meliadine mine, which were
produced prior to the achievement of commercial production on May
14, 2019.
|
(iii) Adjusted gold
production for the year ended December 31, 2020 excludes
18,930 ounces of payable gold from the Barnat deposit at the
Canadian Malartic mine, which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020. Adjusted gold production for the three months
and year ended December 31, 2019 exclude 3,137 ounces of
payable gold from the Barnat deposit at the Canadian Malartic mine,
which were produced prior to the achievement of commercial
production at the Barnat deposit on September 30, 2020.
|
(iv) Adjusted gold
production for the year ended December 31, 2019 excludes 5 ounces
of payable gold production at the Lapa mine, which were credited to
the Company as a result of final refining reconciliations following
the cessation of mining and processing operations at the Lapa mine
on December 31, 2018.
|
(v) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
(vi) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "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
December 31,
|
|
Year Ended
December 31,
|
(thousands of United States
dollars)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income for the period
|
$
|
205,217
|
|
$
|
331,695
|
|
$
|
511,607
|
|
$
|
473,166
|
Income and mining
taxes expense
|
88,777
|
|
172,250
|
|
255,958
|
|
265,576
|
Other expenses
(income)
|
11,529
|
|
(11,531)
|
|
48,234
|
|
(13,169)
|
Foreign currency
translation loss (gain)
|
10,991
|
|
(140)
|
|
22,480
|
|
4,850
|
Impairment
reversal
|
—
|
|
(345,821)
|
|
—
|
|
(345,821)
|
Environmental
remediation
|
26,838
|
|
2,719
|
|
27,540
|
|
2,804
|
Gain on derivative
financial instruments
|
(58,576)
|
|
(6,828)
|
|
(107,873)
|
|
(17,124)
|
Finance
costs
|
20,933
|
|
26,285
|
|
95,134
|
|
105,082
|
General and
administrative
|
33,908
|
|
35,432
|
|
116,288
|
|
120,987
|
Amortization of
property, plant, and mine development
|
174,954
|
|
150,319
|
|
631,101
|
|
546,057
|
Exploration and
corporate development
|
39,024
|
|
23,750
|
|
113,492
|
|
104,779
|
Operating margin(i)
|
$
|
553,595
|
|
$
|
378,130
|
|
$
|
1,713,961
|
|
$
|
1,247,187
|
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.
|
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SOURCE Agnico Eagle Mines Limited