(All amounts expressed in U.S. dollars unless
otherwise noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO,
April 29, 2021
/PRNewswire/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX:
AEM) ("Agnico Eagle" or the "Company") today reported
quarterly net income of $136.1
million, or net income of $0.56 per share, for the first quarter of
2021. This result includes gains of $10.0 million ($0.04 per share) on the sale of certain non-core
European properties, derivative gains on financial instruments of
$6.8 million ($0.03 per share), non-cash foreign currency
translation gains of $3.1 million
($0.01 per share), non-cash
mark-to-market losses on warrants of $27.7
million ($0.11 per share),
foreign currency translation losses on deferred tax liabilities of
$11.2 million ($0.05 per share), a multi-year health care
donation of $5.0 million (net of tax,
pre-tax amount of $8.0 million)
($0.02 per share) and various other
adjustment losses of $2.8 million
($0.01 per share). Excluding
these items would result in adjusted net income1 of
$162.9 million or $0.67 per share for the first quarter of
2021. For the first quarter of 2020, the Company reported a
net loss of $21.6 million or a net
loss of $0.09 per share.
Included in the first quarter of 2021 net income, and not
adjusted above, are non-cash stock option expense of $8.8 million ($0.04
per share) and workforce costs of employees affected by the
COVID-19 pandemic (primarily Nunavut-based) of $2.6
million ($0.01 per
share).
In the first quarter of 2021, cash provided by operating
activities was $356.4 million
($415.2 million before changes in
non-cash components of working capital), compared to the first
quarter of 2020 when cash provided by operating activities was
$163.4 million ($204.8 million before changes in non-cash
components of working capital). The cash provided by
operating activities in the first quarter of 2021 resulted in
another strong quarter of free cash-flow2
generation.
The increase in net income in the first quarter
of 2021, compared to the prior-year period, is primarily due to
higher mine operating margins and lower losses in non-cash items
related to mark-to-market adjustments on financial instruments
owned by the Company, partially offset by higher amortization of
property, plant and mine development due to higher production
volumes and the contribution of the Hope Bay mine, higher general
and administration costs related to a health care donation of
$8.0 million spread over several
years (C$10.0 million) that was
expensed in the first quarter of 2021, and higher income and mining
taxes driven by higher operating margins.
In the first quarter of 2021, the higher mine
operating margins were primarily a result of strong operating
performance at the LaRonde and Meadowbank complexes, the Meliadine
and Canadian Malartic mines and the contribution from the recently
acquired Hope Bay mine, and higher average realized metal
prices. In the first quarter of 2020, gold production was
negatively impacted by COVID-19 related reductions in mining
activities along with short-term production ramp-up issues in
Nunavut and in the high-grade West
mine area at LaRonde.
The increase in cash provided by operating activities in
the first quarter of 2021, compared to the prior-year period, was
mainly due to an increase in mine operating margins for the reasons
described above, partially offset by higher cash taxes related to
the higher mine operating margins and payments for deferred taxes
related to the 2020 tax year in the quarter.
"Building on the back of strong operating results in the
second half of 2020, we are reporting our second consecutive
quarter of record production, with strong operational and safety
performance at all of our key mines and better than forecasted
costs. The Company remains on track to hit its production and
cost guidance for 2021, and we expect to generate strong free
cashflow during the year," said Sean
Boyd, Agnico Eagle's Chief Executive Officer. "We
significantly increased our exploration budget for 2021 and we are
already starting to see positive results from this initiative, with
drilling encountering high-grade gold mineralization at Hope Bay
and a significant drill result suggesting the potential for an
almost one-kilometre extension to the East Gouldie Zone at the
Odyssey underground project. The Company is also pleased to
release its 2020 Sustainability Report, which includes an
updated climate change strategy with a net-zero emissions
target for 2050 and the initial declaration of Scope 3 emissions,"
added Mr. Boyd.
_________________________
|
1
Adjusted net income is a non-GAAP
measure. For a discussion regarding the Company's use of
non-GAAP measures, please see "Note Regarding Certain Measures of
Performance".
|
2
Free cash flow is a non-GAAP
measure. For a discussion regarding the Company's use of
non-GAAP measures, please see "Note Regarding Certain Measures of
Performance".
|
First quarter of 2021 highlights include:
- Strong operational performance in March drives record
quarterly gold production – Better than forecast
performance at LaRonde, Kittila, Meliadine and Meadowbank in March
resulted in record payable gold production1 in the first
quarter of 2021 of 504,545 ounces (excluding 12,259 ounces of
payable gold production at Hope Bay, and including 8,123 ounces of
pre-commercial production of gold at the Tiriganiaq open pit at
Meliadine) at production costs per ounce of $782, total cash costs per ounce2 of
$729 and all-in sustaining costs
("AISC") per ounce3 of $996. Including Hope Bay, payable gold
production in the first quarter of 2021 was 516,804 ounces at
production costs per ounce of $811,
total cash costs per ounce of $734
and AISC per ounce of $1,007.
Production costs, total cash costs per ounce and AISC per ounce
exclude the pre-commercial production of gold at Tiriganiaq
- Production and cost guidance maintained for 2021
– Expected gold production in 2021 is unchanged at
approximately 2,047,500 ounces, while total cash costs per ounce
and AISC per ounce continue to be forecast in the range of
$700 to $750 and $950 to
$1,000, respectively. Gold
production in 2021 is still expected to be split approximately 48%
in the first half of the year and 52% in the second half. The
second quarter is now forecast to be the weakest production
quarter. This relates to stronger than expected performance
in the first quarter of 2021 and scheduled maintenance at several
operations in the second quarter of 2021 that requires changes
in the mining sequence which will result in slightly lower expected
grades. Estimated payable gold production and costs for 2021
exclude any contribution from Hope Bay
- Capital expenditures for 2021 remain unchanged
– Total capital expenditures for 2021 are still
estimated to be approximately $803.0
million. Capital spending levels in the first quarter of
2021 were lower than forecast largely due to the timing of
expenditures. Capital spending is expected to return to more
normalized levels over the balance of the year
- 2020 Sustainability Report provides an updated climate
change strategy – The Company will release its
2020 Sustainability Report on April 30,
2021, highlighting the progress achieved during the past
year in the areas of sustainability and responsible mining. Key
initiatives include the evolution of the Company's climate change
strategy with a net-zero emissions target for 2050 and the partial
disclosure of Scope 3 emissions
- A quarterly dividend of $0.35 per share has been declared
- Drilling identifies a potentially significant
extension to the East Gouldie Zone – At the
Odyssey project at the Canadian Malartic mine, a 970-metre step-out
drill hole has intersected the eastern down plunge extension of the
East Gouldie Zone. This hole intersected 2.7 grams per tonne
("g/t") gold over 10.9 metres, including 3.1 g/t gold over 7.2
metres at approximately 1,995 metres depth. This new intercept
suggests that the current mineral resources at East Gouldie could
be expanded significantly down-plunge towards the east. Drilling is
also underway to infill the East Gouldie Zone to 75 metre spacing.
Highlights from this program include: 6.3 g/t gold over 22.6 metres
at 1,482 metres depth and 3.7 g/t gold over 58.6 metres at 1,580
metres depth
- Optimization and exploration activities ongoing at
Hope Bay – Hope Bay was acquired on February 2, 2021, and attributable gold
production for the first quarter of 2021 was 12,259 ounces at
production costs per ounce of $1,964,
total cash costs per ounce of $929
and AISC per ounce of $1,505.
Quarterly production guidance for Hope Bay is unchanged at
approximately 18,000 to 20,000 ounces of gold at total cash costs
per ounce of $950 to $975 and AISC per ounce of $1,525 to $1,575.
The Hope Bay management team is currently focused on optimizing the
underground mine and mill operations, with a longer-term view to
developing a larger scale production centre. During the first
quarter of 2021, exploration activities were focused on the Doris
area, which is the current source of mill feed. Highlights include:
9.8 g/t gold over 16.7 metres at 343 metres depth in the BTD
Extension and 11.6 g/t gold over 7.4 metres at 203 metres depth at
the DCN Zone
_________________________
|
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".
|
First Quarter 2021 Financial and Production
Highlights
In the first quarter of 2021, the Company set a
second consecutive record in quarterly payable gold production of
504,545 ounces (excluding 12,259 ounces of payable gold production
at Hope Bay, and including 8,123 ounces of pre-commercial
production of gold at the Tiriganiaq open pit at Meliadine).
This compares to quarterly payable gold production of 411,366
ounces in the prior-year period (which included 2,974 ounces of
pre-commercial production of gold at the Barnat deposit at Canadian
Malartic). Including the Hope Bay mine, the Company's
quarterly gold production was 516,804 ounces in the first quarter
of 2021.
The higher gold production in the first quarter
of 2021, when compared to the prior-year period, was primarily due
to strong performance at the LaRonde and Meadowbank complexes and
at the Canadian Malartic, Meliadine and Kittila mines, especially
in the month of March 2021, partially
offset by lower production at Pinos
Altos resulting from lower gold grades encountered under the
mining sequence, at La India related to water conservation efforts
and at Creston Mascota where only residual leaching remains.
In the first quarter of 2020, gold production was negatively
affected by COVID-19 related reductions in mining activities.
A detailed description of the production at each mine is set out
below.
Production costs per ounce in the first quarter of 2021
were $782 (excluding the Hope Bay
mine), compared to $872 in the
prior-year period. Total cash costs per ounce in the first
quarter of 2021 were $729 (excluding
the Hope Bay mine), compared to $836
in the prior-year period. Including the Hope Bay mine,
production costs per ounce were $811
and total cash costs per ounce were $734 in the first quarter of 2021.
In the first quarter of 2021, production costs per ounce
decreased when compared to the prior-year period primarily due to
higher gold production, partially offset by the strengthening of
the Canadian dollar against the U.S. dollar. In the first
quarter of 2021, total cash costs per ounce decreased when compared
to the prior-year period primarily due to higher gold production
and higher by-product revenues, partially offset by the
strengthening of the Canadian dollar against the U.S.
dollar.
AISC per ounce in the first quarter of 2021 were
$996 (excluding the Hope Bay mine),
compared to $1,099 in the prior-year
period. AISC in the first quarter of 2021 decreased when
compared to the prior-year period primarily due to lower total cash
costs per ounce. Including the Hope Bay mine, AISC per ounce
were $1,007 in the first quarter of
2021.
Financial Flexibility Remains Strong After
Acquisition of TMAC Resources
Cash and cash equivalents and short-term investments
decreased to $132.0 million at
March 31, 2021, from the December 31, 2020 balance of
$406.5 million, as the Company used
its cash position and the free cash flow generated from operations
to acquire TMAC Resources Inc. ("TMAC") for approximately
$226.0 million for its equity (or
$185.9 million, net of cash and cash
equivalents acquired), to advance $105.0 million to TMAC to
repay its outstanding debt, to buy-back for $50.0 million a 1.5% net smelter return royalty
on Hope Bay from Maverix Metals Inc. and to pay cash tax
installments related to deferred taxes for the 2020 tax year.
As of March 31, 2021, the outstanding
balance on the Company's unsecured revolving bank credit facility
was nil, and available liquidity under this facility was
approximately $1.2 billion, not
including the uncommitted $300
million accordion feature.
In April 2021, DBRS
Morningstar and Fitch Ratings confirmed their credit ratings on the
Company at BBB with a stable outlook.
Approximately 32% of the Company's remaining 2021
estimated Canadian dollar exposure is hedged at an average floor
price above 1.32 C$/US$.
Approximately 53% of the Company's remaining 2021 estimated Mexican
peso exposure is hedged at an average floor price above
20.75 MXP/US$. Approximately 8%
of the Company's remaining 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
(excluding Hope Bay) for 2021 is hedged at an average floor price
below $0.45 per litre, which is
better than the 2021 cost guidance assumption of $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.
Capital Expenditures
Total capital expenditures (including sustaining capital)
in the first quarter of 2021 were $154.9
million (excluding Hope Bay), lower than forecast primarily
due to the timing of the expenditures. Including Hope Bay,
the total capital expenditures in the first quarter of 2021 were
$163.0 million. Capital
spending is expected to return to more normalized levels over the
balance of the year and the total capital expenditures (including
sustaining capital) in 2021 remain forecast to be approximately
$803.0 million, excluding the Hope
Bay mine. The estimate is based on an exchange rate of
1.30 C$/US$. Pre-commercial
production at the Tiriganiaq open pit at Meliadine is incorporated
in, and netted against, the total 2021 capital expenditure
forecast. As a result, some variability is likely depending
on the timing of the achievement of commercial production,
prevailing gold prices and foreign exchange rates.
The following table sets out capital expenditures
(including sustaining capital) in the first quarter of
2021.
Capital Expenditures
|
|
|
(In thousands of U.S. dollars)
|
|
|
|
Three Months Ended
|
|
|
March 31, 2021
|
|
Sustaining Capital
|
|
|
LaRonde
Complex
|
$
|
21,572
|
|
Canadian Malartic
mine
|
19,555
|
|
Meadowbank
Complex
|
7,342
|
|
Meliadine
mine
|
10,208
|
|
Kittila
mine
|
10,644
|
|
Goldex mine
|
7,170
|
|
Pinos Altos
mine
|
4,118
|
|
La India
mine
|
1,855
|
|
Total Sustaining
Capital
|
$
|
82,464
|
|
|
|
|
Development Capital
|
|
|
LaRonde
Complex
|
$
|
8,785
|
|
Canadian Malartic
mine
|
7,648
|
|
Meadowbank
Complex
|
4,031
|
|
Amaruq underground
project
|
10,349
|
|
Meliadine
mine
|
13,850
|
|
Kittila
mine
|
14,380
|
|
Goldex mine
|
4,054
|
|
Pinos Altos
mine
|
1,553
|
|
La India
mine
|
1,674
|
|
Other
|
6,089
|
|
Total Development
Capital
|
$
|
72,413
|
|
Total Capital
Expenditures - excluding Hope Bay
|
$
|
154,877
|
|
|
|
|
Hope Bay
mine
|
8,167
|
|
Total Capital
Expenditures - including Hope Bay
|
$
|
163,044
|
|
2021 Production and Cost Guidance
Unchanged
Production guidance for 2021 remains unchanged at
approximately 2,047,500 ounces of gold (including approximately
29,000 ounces of pre-commercial gold production from the Tiriganiaq
open pit at Meliadine). The Company anticipates that total
cash costs per ounce and AISC per ounce for 2021 will continue to
be in the range of $700 to
$750 and $950 to $1,000,
respectively. Approximately 52% of expected gold production
in 2021 is anticipated to occur in the second half of 2021.
The second quarter is now forecast to be the weakest production
quarter. This relates to stronger than expected performance in
the first quarter of 2021 and scheduled maintenance at several
operations (LaRonde Complex, Goldex, Meadowbank Complex, Meliadine
and Kittila) in the second quarter of 2021 that results in
changes in the mining sequence which brings in slightly lower
grades. Estimated payable gold production and costs for 2021
exclude any contribution from Hope Bay.
On a quarterly basis, Hope Bay is expected to produce
approximately 18,000 to 20,000 ounces of gold at total cash costs
per ounce of $950 to $975 and AISC per ounce of $1,525 to $1,575.
General & Administration Cost
Guidance
In the first quarter of 2021, general and
administration expenses were $44.9
million, which was above forecast primarily due to a health
care donation of $8.0 million
(C$10.0 million) spread over several
years that was expensed in the first quarter of 2021 and due to
higher costs related to compensation and benefit expenses in the
first quarter of 2021. The Company now expects its 2021
general and administration expenses to be between $90 and $100
million (previously $80 to
$90 million), excluding share-based
compensation expense. 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).
Depreciation Guidance
In the first quarter of 2021, depreciation and
amortization expenses were $174.7
million (excluding the Hope Bay mine). For 2021, the
depreciation and amortization expenses are still forecast to be
between $700 and $750 million.
In the first quarter of 2021, the depreciation and
amortization expense for the Hope Bay mine was $6.4 million and, going forward, it is forecast
to be approximately $8.0 million per
quarter.
2021 Tax Guidance
Income and mining taxes expense for the first quarter of
2021 was $93.4 million (an
effective tax rate of 40%). The effective tax rate is within
the guided overall tax rate range for 2021 of 40% to
45%.
In the first quarter of 2021, the Company made cash tax
payments of approximately $109.0
million. Of these, approximately $76.0 million related to top-up payments for
taxes related to the 2020 tax year for Canada ($44.0
million) and Mexico
($32.0 million). The higher
than normal payments are a result of the Company's opting to defer
tax installments due to COVID-19 and the annual payment of the
Special Mining Duty ("SMD") in Mexico of approximately $10.0 million. This annual SMD is due in
March following the tax year-end. The Company expects cash
taxes in each of the next three quarters to be aligned with the
forecast amounts.
As previously outlined in the Company's news release dated
February 11, 2021, the Company
expects its effective tax rates by jurisdiction for the full year
2021 to be:
Canada - 40% to
50%
Mexico - 35%
to 40%
Finland -
20%
2020 Sustainability Report Updates Climate Change
Strategy
The Company will release its 2020 Sustainability Report on
April 30, 2021, highlighting the
progress achieved during the past year in the areas of
sustainability and responsible mining. Key initiatives
include an updated climate change strategy with a
net-zero emissions target for 2050, and the disclosure of Scope 3
emissions (partial).
Adaptable, sustainable, accountable. These three
words express Agnico Eagle's long-standing approach to improving
sustainability performance. In 2020, they represented the
Company's commitment (in the face of COVID-19) to remain focused on
advancing its sustainability goals while protecting the health and
safety of its employees and the communities in which it
operates.
- The Company is committed to maintaining the highest
health and safety standards. The Company's long-term goal is to
strengthen its health and safety culture through individual
accountability and leadership, accompanied by aspirational zero
harm safety targets and leading performance indicators. The past
year was marked by the unique challenges brought on by the COVID-19
pandemic, and the Company's health & safety teams demonstrated
remarkable adaptability to respond promptly to changing
conditions
- In 2020, the Company's combined lost-time accident and
restricted work frequency (employees and contractors) was 1.02,
compared to 0.99 in 2019. The Company expects to use the many
lessons learned in 2020 to improve its safety performance. It has
launched the Towards Zero Accidents health and safety initiative,
another step along our journey to eliminate workplace injuries and
reach our goal of zero accidents
- The Company's efforts in Environmental Stewardship focus
on minimizing its environmental footprint, by preventing or
limiting emissions, and reducing waste. Each of the Company's
operations is responsible to identify, analyze and manage
environmental risks and to work in a transparent manner with local
stakeholders, building a foundation of trust and cooperation
- In 2020, the Company's greenhouse gas ("GHG") Scope 1 and
2 emissions were 578,156 tonnes of CO2 equivalent
("CO2eq") representing an 11% increase compared to 2019
and our GHG emissions intensity (tonnes of CO2eq per
ounce of gold processed) increased by 7% to 0.40 in 2020.
Both increases relate primarily to the ramp-up of operations in
Nunavut. While there is still work to do, the Company
believes it has the lowest GHG emissions intensity in its peer
group, achieved by sourcing 52% of its electricity needs from
renewable sources
- The increase in 2019 and 2020 is mainly attributable
to the expansion of Meadowbank Complex and start-up of Meliadine
mine in Nunavut where there is no
power grid, and the only available source of electricity is through
diesel generators. The Company sees potential to materially
reduce GHG emissions for not only these new mining operations, but
also for the entire Kivalliq region of Nunavut, through the construction of a power
(and fibre optic) line sourcing green renewable energy from
northern Manitoba. The Company is
actively working with the local Inuit associations, the Government
of Nunavut, and the Federal
Government of Canada to move this
power/fibre line forward. The company is also considering
alternatives, including wind generation for which the Company has
permits at the Hope Bay mine. The Company continues work with local
stakeholders in the north to find innovative solutions to
reduce its carbon footprint
- In 2020, the Company completed a first estimate of its
Scope 3 GHG emissions, following the GHG Protocol Standard and
using spend-base emission factors. The Company's scope 3 GHG
emissions are estimated at approximately 1.3 million tonnes of
CO2eq. Most of these emissions are estimated to come from the
purchase of standard goods and services from carbon intensive
industries such as chemicals, mining services and construction.
Given the approximate nature of this assessment and the rapidly
evolving practice, it is expected that the Company's Scope 3
assessment may vary in the coming years
- The Company understands that the planet is at a critical
juncture in the climate crisis. In the short term, all of the
Company's sites have initiated GHG reduction initiatives and
continue to research, develop and implement new ones. In the long
term, the Company has committed to a net zero target for 2050.
Pathways to achieve net zero, including specific reduction targets,
and other key climate-related targets will be evaluated as the
Company continues to move forward on improving its performance on
all climate-related matters
- The Company believes that its people and culture have
always been a competitive strength and advantage. Diversity and
inclusion are fundamental to the Company's core values of Family,
Trust, Respect, Responsibility and Equality. The Company is
committed to engaging, developing and retaining the best people and
empowering everyone with equal access to opportunities and
recognition
- In 2020, the Company continued investing in local
communities, with total spending of $5.3 million in community investments
($47.0 million since 2009),
$876 million in local procurement
(55% proportion of spending with locally based suppliers) and
$621 million paid to employees in
wages and benefits
- In 2020, the COVID-19 pandemic created unique challenges
to the communities in which the Company operates. The Company
worked closely with community authorities and businesses to
leverage its ability to access materials to support the most
vulnerable people in society and to provide critical health,
safety, food and other supplies. Among the actions taken, the
Company delivered food baskets and supported food banks, provided
hygiene and PPE supplies to communities and frontline workers,
supported local businesses through special aid and purchase of
vouchers and gift cards for employees and communities and provided
workforce, equipment and material for community-led support
initiatives through a program called the "Good Deeds Brigade" in
Nunavut
"Sustainability is a mindset and we see it as an
opportunity to do better, to constantly improve and to deliver on
our responsibilities and promises to all of our stakeholders", said
Mr. Boyd.
Dividend Record and Payment Dates for the Second
Quarter of 2021
Agnico Eagle's Board of Directors has declared a quarterly
cash dividend of $0.35 per common
share, payable on June 15, 2021 to
shareholders of record as of June 1,
2021. Agnico Eagle has declared a cash dividend every year
since 1983.
Remaining Expected Dividend Record and Payment Dates
for 2021
Record Date
|
Payment Date
|
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
All of the regions in which the Company operates are
experiencing a third wave of COVID-19 and have maintained or
reinforced COVID-19 related restrictions. The Company
continues to apply and reinforce the extraordinary measures
implemented to protect the health and safety of its employees and
the communities in which it operates. During the first
quarter of 2021, none of the Company's operations were suspended or
restricted. Although the Company believes the risk for
business interruption remains low considering the rigorous
protocols that have been implemented in all of the regions, the
situation remains challenging and it requires close attention and
adaptation from the sites. Unexpected interruptions could
still occur given the uncertainty surrounding the evolution of the
virus and its variants and the measures taken by governments and
others to contain the spread and impact of the virus and its
variants.
Throughout the COVID-19 pandemic, the Company has
maintained communication with local authorities to understand the
community's priorities and provide support where and when
needed. The 2020 Sustainability Report details some of the
Company's initiatives completed in 2020. During the first
quarter of 2021, the Company continued to donate food for
vulnerable people and health and safety supplies to the surrounding
communities of Pinos Altos and La
India. In Nunavut, the Company launched the Digital
Ambassador Program, a community-focused initiative to enhance the
ability to consult and engage with community members while also
addressing digital challenges. Community-based ambassadors
provide access to technology and support for people interested in
attending virtual information or consultation meetings in a safe
and effective manner using iPads that the Company provides.
The Company also participated in the Baker Lake Hot Meals program,
providing meals to 20-40 community members on a monthly
basis. In Finland, the
Company continued to support local tourism businesses by helping
them obtain environmental certificates and financing entry tickets
for school children to a local winter attraction. In the
Abitibi, the Company donated funds to local support groups.
Government vaccination programs for COVID-19 are underway
in all of the regions in which the Company operates. The
Company's local teams have offered their support to the vaccination
effort to the local health authorities. In Mexico, the Company provides transportation
for health personnel to the community to administer COVID-19
vaccines and transportation for employees to bring them to
vaccination centres. In Nunavut, the Company subsidizes meals
for the medical staff and volunteers participating in the
vaccination campaign in the Kivalliq region.
COVID-19 protocols (not including compensation paid to
Nunavut-based employees) added
approximately $1.4 million
(approximately $3 per ounce) to the
Company's operating costs in the first quarter of 2021. These
costs relate mainly to the purchase of sanitizing equipment and
consumables; procurement of 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. To date, the Company has seen limited
impact on operational productivity as a result of
COVID-19.
In the first quarter of 2021, the Company's
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 $4.1 million
pre-tax, $2.6 million net of tax,
which is included in Other (Income) Expenses).
In Nunavut, the
vaccination campaign is well advanced and discussions are underway
with local authorities to discuss the reintegration of the
Nunavut-based workforce. The
Company is in the process of establishing a reintegration plan
taking into account logistics, testing and health protocols, as
well as training plans required to ensure a smooth and safe
reintegration. No timeline for reintegration has been set at
the time of this news release.
In the first quarter of 2021, 219 employees tested
positive for COVID-19. A significant majority of these cases
were detected by the Company's screening and testing
protocols. To date, the Company believes these protocols have
been effective at detecting COVID-19 cases and preventing the
spread of the virus within the Company's operations. The
following table sets out additional information on COVID-19 cases
identified in the first quarter of 2021.
Region
|
Total Positive
Cases
|
Detected Offsite
|
Detected by the
Company's
protocols
|
Recovered
Cases**
|
Finland
|
1
|
1
|
—
|
3
|
Nunavut*
|
22
|
4
|
18
|
37
|
Abitibi
|
27
|
17
|
10
|
28
|
Mexico
|
131
|
2
|
129
|
92
|
Exploration
|
37
|
7
|
30
|
36
|
Toronto
|
1
|
1
|
—
|
1
|
Sub-Total
|
219
|
32
|
187
|
197
|
*Excluding
pre-acquisition cases at Hope Bay
|
**Recovered Cases in
the first quarter 2021 include employees that were positive and had
not yet recovered at the end of the fourth quarter of 2020 and that
recovered in the first quarter of 2021.
|
The Company will continue to strive to provide a healthy
and safe working environment at all its operations. The
Company will continue to monitor the situation closely and respond
promptly as needed.
First Quarter 2021 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference
call on Friday, April 30, 2021 at
8:30 AM (E.D.T.) to discuss
the Company's first 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 2091801. The conference call replay will expire
on May 30, 2021.
The webcast, along with presentation slides, will be
archived for 180 days on the Company's website.
Annual Meeting
The Company's Annual and Special Meeting of Shareholders
(the "AGM") will begin on Friday, April 30,
2021, at 11:00 AM
(E.D.T.). Due to the continuing public health impact
of the COVID-19 pandemic, and having regard to the health and
safety of the Company's employees and shareholders as well as
public health guidelines to limit gatherings of people, the AGM
will be held in a virtual-only meeting format and conducted via
live webcast using the LUMI meeting platform at
https://web.lumiagm.com/272684657.
The Company expects to revert to an in-person annual meeting in
future years after public health conditions have
improved.
For details on how to attend, communicate and vote at the
virtual AGM, please see the Company's Management Information
Circular dated March 22, 2021 as well
as the additional materials filed under the Company's profile on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Shareholders
who have questions about voting their shares or attending the AGM
may contact Investor Relations by telephone at 416.947.1212, by
toll-free telephone at 1.888.822.6714 or by email at
info@agnicoeagle.com.
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and
LaRonde Zone 5 ("LZ5") mines) and the Goldex mine and a 50%
interest in the Canadian Malartic mine. These mines are
located within 50 kilometres of each other, which provides
operating synergies and allows for the sharing of technical
expertise.
LaRonde Complex – Better Than Forecast Performance at
LZ5; Exploration Drifts Advancing on Three Levels, Drilling
Expected to Begin in the Third Quarter of 2021
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988. The LZ5 property lies adjacent to and west of the
LaRonde mine and previous operators exploited the zone by open pit
mining. The LZ5 mine achieved commercial production in
June 2018.
LaRonde Complex – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
764
|
|
657
|
Tonnes of ore milled
per day
|
8,489
|
|
7,220
|
Gold grade
(g/t)
|
4.02
|
|
3.48
|
Gold production
(ounces)
|
93,078
|
|
69,687
|
Production costs per
tonne (C$)
|
$
|
108
|
|
$
|
63
|
Minesite costs per
tonne (C$)
|
$
|
108
|
|
$
|
108
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
688
|
|
$
|
465
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
541
|
|
$
|
716
|
Gold production in the first quarter of 2021 increased
when compared to the prior-year period primarily as a result of a
higher throughput levels and higher grade. The LaRonde
Complex performed above plan in the first quarter of 2021 primarily
due to increased productivity achieved with the use of automated
equipment and unanticipated ore extracted from the development
in Zone LR11-3. In the prior-year period, access to higher
grade ore from the West mine area was delayed as additional ground
support was being completed and the operations were temporarily
suspended on March 23, 2020 as
ordered by the Government of Quebec in response to COVID-19 (the
"Quebec order").
Production costs per tonne in the first quarter of 2021
increased when compared to the prior-year period primarily due to
the timing of unsold concentrate inventory. Production costs
per ounce in the first quarter of 2021 increased when compared to
the prior-year period due to the reasons described above and the
strengthening of the Canadian dollar against the U.S. dollar,
partially offset by higher gold grades.
Minesite costs per tonne6 in the first quarter
of 2021 were the same when compared to the prior-year period.
Total cash costs per ounce in the first quarter of 2021 decreased
when compared to the prior-year period due to higher gold
production and higher by-product revenues due to higher average
realized by-product metal prices, partially offset by the
strengthening of the Canadian dollar against the U.S.
dollar.
_________________________
|
6
Minesite costs per tonne is a non-GAAP
measure. For a reconciliation of this measure to production
costs as reported in the financial statements, see "Reconciliation
of Non-GAAP Financial Performance Measures" below. See also
"Note Regarding Certain Measures of Performance" below.
|
Operational Highlights
- The ramp-up of mining activities in the West mine area at
the LaRonde mine continues to progress as planned. An average
production rate of 1,221 tonnes per day ("tpd") was achieved,
slightly above the forecast of 1,150 tpd
- The LZ5 mine achieved a record production rate of 3,140
tpd, well above the forecast, which resulted in a reduction of
costs per tonne. The strong performance was driven by
continuous optimization of production from automated
equipment
- Production from automated equipment was above target both
at LaRonde and LZ5. At the LaRonde mine, 26% of the
production mucking was done in automated mode with operators based
on surface and 66% of the production drilling was done on automated
or assisted mode. At the LZ5 mine, 21% of the production
mucking and hauling was done in automated mode with operators based
on surface
- In the second quarter of 2021, there is a planned ten-day
maintenance shutdown at the LaRonde Complex. At the mill,
maintenance work is scheduled to be done on the concentrate filter
presses and on the 5,000 tonne ore silo. At the mine,
maintenance work is expected to be done on the surface exhaust
fan
- As part of ongoing stakeholder engagement, the Company is
in discussions with First Nations groups concerning a collaboration
agreement
Project Highlights
- Infrastructure continues to be developed to provide
further access to mine LaRonde 3 (below Level 311)
- At Zone LR11-3 (which is at the past producing Bousquet 2
mine), development from level 146 of the LaRonde mine advanced by
353 metres in the first quarter of 2021. The development went
through Zone 6 and approximately 12,000 tonnes of low grade ore was
processed at the mill. Zone LR11-3 is expected to be reached in the
second half of 2021 and production activities are expected to begin
in 2022
- The three exploration drifts being developed to explore
areas located 1 to 3 kilometres from surface below LZ5 and west of
the 20N Zone are progressing as planned. Initial exploration
drilling is expected to commence in the third quarter of
2021
Canadian Malartic Mine – Barnat Pit Optimization
Completed; Drilling Identifies a Significant Extension to the East
Gouldie Zone
In June 2014, Agnico Eagle
and Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation
(now Canadian Malartic Corporation)
and created Canadian Malartic GP
(the "Partnership"). The Partnership owns the Canadian
Malartic mine in northwestern Quebec and operates it through a joint
management committee. Each of Agnico Eagle and Yamana has a
direct and indirect 50% ownership interest in the
Partnership. All volume numbers in this section reflect the
Company's 50% interest in the Canadian Malartic mine, except as
otherwise indicated. The Odyssey underground project was
approved for construction in February
2021.
Canadian Malartic Mine – Operating
Statistics
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
5,262
|
|
4,642
|
Tonnes of ore milled
per day (100%)
|
58,467
|
|
53,979
|
Gold grade
(g/t)
|
1.18
|
|
0.94
|
Gold production
(ounces)
|
89,550
|
|
61,789
|
Production costs per
tonne (C$)
|
$
|
27
|
|
$
|
28
|
Minesite costs per
tonne (C$)
|
$
|
28
|
|
$
|
27
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
619
|
|
$
|
787
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
617
|
|
$
|
734
|
Gold production in the first quarter of 2021 increased
when compared to the prior-year period primarily due to higher gold
grades, higher throughput and higher gold recovery. The
higher throughput primarily resulted from strong operational
performance and continuous operation through the quarter while, in
the prior-year period, the operations were temporarily suspended on
March 23, 2020 due to the Quebec
Order.
Production costs per tonne in the first quarter of 2021
were essentially the same when compared to the prior-year period as
higher open pit production costs resulting from a higher stripping
ratio were offset by higher throughput and the timing of
inventory. Production costs per ounce in the first quarter of
2021 decreased when compared to the prior-year period primarily due
to higher gold production, partially offset by the strengthening of
the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first quarter of 2021 were
essentially the same when compared to the prior-year period as
higher open pit production costs due to a higher stripping ratio
were offset by higher throughput. Total cash costs per ounce
in the first quarter of 2021 decreased when compared to the
prior-year period primarily due to higher gold production,
partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Operational Highlights
- The mine achieved record tonnage mined in a month in
January 2021
- The mill performed above target, processing 5,262,686
tonnes (58,467 tpd) in the first quarter of 2021
- The Canadian Malartic pit is forecast to provide
approximately 60% of the ore during the second quarter of
2021
- In the first quarter of 2021, the Barnat pit optimization
was completed. The new design results in approximately 150,000
ounces of gold being added to the 2020 year end mineral reserve
estimate (50% basis). Overburden stripping was completed in
April 2021 and topographic drilling
is expected to be finished by the third quarter of 2021. Softer
ground conditions at Barnat are expected to increase the milling
rate
Project Highlights
Canadian Malartic:
- Tailings disposal is expected to transition to in-pit
deposition once mining in the Canadian Malartic pit is completed in
2023. The Canadian Malartic team is developing a plan to increase
the flexibility for tailings disposal prior to the
transition
Odyssey Project:
- The ramp and underground project are on schedule and on
budget. Approximately 362 linear metres of development were
completed in the first quarter of 2021, reaching a depth of 74
metres below surface
- Shaft preparation work is underway. Construction on the
headframe foundation is expected to start in the second quarter of
2021
Aggressive Drilling Program Continues to Infill East
Gouldie High-Grade Core; Regional Drilling Discovers Potential
Extension of East Gouldie 1,150 metres East of Current Mineral
Resources
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.
Exploration at Canadian Malartic is undertaken through the
Partnership. The primary exploration target at Canadian
Malartic continues to be 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 underground East Malartic
and Odyssey zones.
The East Gouldie Zone has a strike length of 1,400 metres
in an east-west direction, dips 60 degrees north and extends from
700 metres to 1,900 metres depth below surface. The zone
remains open laterally and down-plunge. As of December 31, 2020, East Gouldie was estimated to
contain inferred mineral resources of 6.4 million ounces of gold,
with Agnico Eagle's 50% interest representing 3.2 million ounces of
gold (31.5 million tonnes grading 3.17 g/t gold).
East Gouldie, together with East
Malartic and Odyssey, comprise the three main
underground-mineralized zones of the Odyssey underground project
that is currently under development for production, as detailed in
the Company's news release dated February
11, 2021.
The aggressive infill drilling program at the Canadian
Malartic property continued during the first quarter of 2021, with
10 drill rigs completing 23,400 metres (100% basis), mainly focused
on East Gouldie with the objective of reducing the drill spacing to
75 metres from 150 metres within the current mineral resource
envelope in preparation for converting mineral resources to mineral
reserves in the future. An additional drill rig is being
utilized in an ongoing geotechnical drilling program in support of
the Odyssey project.
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 Mine – 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. The sub-zone associated with each drill
intersection is indicated in the table below.
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)**
|
MEX19-153W
|
N of HGWZ
|
1,749
|
1,757
|
1,536
|
6.5
|
4.9
|
2.6
|
and
|
HGWZ
|
1,777
|
1,851
|
1,580
|
58.6
|
3.7
|
3.7
|
including
|
|
1,806
|
1,820
|
1,579
|
11.2
|
7.0
|
7.0
|
MEX20-166A
|
HGSZ
|
1,717
|
1,743
|
1,482
|
22.6
|
6.4
|
6.3
|
including
|
|
1,721
|
1,725
|
1,476
|
3.2
|
13.1
|
13.0
|
including
|
|
1,733
|
1,741
|
1,487
|
6.8
|
8.7
|
8.5
|
MEX20-177W
|
HGSZ
|
1,384
|
1,402
|
1,178
|
16.6
|
3.4
|
3.4
|
MEX20-182W
|
HGSZ
|
1,659
|
1,671
|
1,269
|
10.6
|
3.3
|
3.2
|
and
|
S of HGSZ
|
1,709
|
1,716
|
1,289
|
6.0
|
1.8
|
1.8
|
MEX20-185W
|
Btw HGNZ &
HGSZ
|
1,803
|
1,806
|
1,491
|
3.0
|
5.1
|
5.1
|
and
|
HGSZ
|
1,815
|
1,827
|
1,500
|
9.6
|
3.7
|
3.7
|
MEX20-186B
|
HGNZ
|
1,371
|
1,378
|
1,114
|
6.1
|
1.0
|
1.0
|
and
|
HGSZ
|
1,468
|
1,471
|
1,184
|
2.6
|
3.2
|
3.2
|
MEX20-188
|
Btw HGNZ &
HGSZ
|
1,319
|
1,328
|
963
|
9.1
|
2.3
|
2.3
|
and
|
HGSZ
|
1,370
|
1,374
|
983
|
3.8
|
1.8
|
1.8
|
MEX20-190A
|
HGNZ
|
1,508
|
1,510
|
1,102
|
1.7
|
6.6
|
6.6
|
and
|
HGSZ
|
1,599
|
1,607
|
1,170
|
7.6
|
2.2
|
2.2
|
MEX20-191W
|
HGNZ
|
1,525
|
1,528
|
1,344
|
3.2
|
2.6
|
2.6
|
and
|
HGSZ
|
1,543
|
1,557
|
1,360
|
13.7
|
11.2
|
8.6
|
including
|
|
1,547
|
1,554
|
1,361
|
7.1
|
17.7
|
12.7
|
MEX20-192W
|
N of HGWZ
|
1,751
|
1,761
|
1,604
|
8.4
|
8.4
|
5.9
|
and
|
N of HGWZ
|
1,771
|
1,782
|
1,621
|
9.4
|
4.8
|
4.6
|
MEX20-193
|
HGSZ
|
1,794
|
1,804
|
1,639
|
8.7
|
4.3
|
4.3
|
and
|
S of HGSZ
|
1,815
|
1,822
|
1,655
|
6.3
|
6.7
|
6.2
|
MEX20-193WA
|
HGSZ
|
1,744
|
1,759
|
1,566
|
13.3
|
3.8
|
3.8
|
MEX20-194WAB
|
S of HGWZ
|
1,666
|
1,684
|
1,385
|
16.6
|
1.4
|
1.4
|
RD21-4680A
|
Potential EG
Extension
|
2,262
|
2,274
|
1,995
|
10.9
|
2.7
|
2.7
|
including
|
|
2,262
|
2,270
|
1,993
|
7.2
|
3.1
|
3.1
|
*Sub-zones recognized at the East Gouldie Zone
include: High-Grade West Zone; High-Grade North Zone ('HGNZ');
High-Grade South Zone ('HGSZ'); North of High-Grade West Zone
('HGWZ'); South of HGWZ; and Between HGNZ and
HGSZ.
|
**Results from the East Gouldie Zone use a capping
factor of 15 g/t gold.
|
[Canadian Malartic Mine – Composite Longitudinal
Section]
[Canadian Malartic Mine – Geology Plan
Map]
The infill drilling program at East Gouldie during the
first quarter of 2021 continued to deliver robust results such as
in drill hole MEX19-153W, which intercepted 3.7 g/t gold over 58.6
metres at 1,580 metres depth in the western, lower portion of the
zone. Farther east in the high-grade core, drill hole
MEX20-166A returned 6.3 g/t gold over 22.6 metres at 1,482 metres
depth, including 8.5 g/t gold over 6.8 metres at 1,487 metres
depth. Outside of the current mineral resource area to the
east, drill hole MEX20-193 intersected 4.3 g/t gold over 8.7 metres
at 1,639 metres depth and 6.2 g/t gold over 6.3 metres at 1,655
metres depth.
As part of the regional exploration program at Canadian
Malartic, three drill rigs completed eight drill holes totalling
7,500 metres during the first quarter of 2021, including the
testing of deep targets on the Rand Malartic property located
immediately adjacent to the east of the Canadian Malartic mine
property.
The drilling from surface at the Rand Malartic property
has led to the identification of the potential extension of the
East Gouldie Zone in new drill hole RD21-4680A, which encountered a
wide gold-mineralized intercept 970 metres east of the easternmost
drill hole completed to date into the East Gouldie mineralized
envelope (previously reported hole MEX20-180), and approximately
1,150 metres from the current eastern limit of the East Gouldie
mineral resources reported at year-end 2020.
Hole RD21-4680A intersected 2.7 g/t gold over 10.9 metres
at 1,995 metres depth, including 3.1 g/t over 7.2 metres at 1,993
metres depth along the down-plunge eastern projection of the
current mineral resources at East Gouldie. The new intercept
exhibits the same host rocks and mineralization style as East
Gouldie, with weak disseminated pyrite within a wide
silicified/sericitized alteration zone, suggesting that the current
mineral resources at East Gouldie could be expanded significantly
down-plunge towards the east.
The above intercept in Hole RD21-4680A is within the
Canadian Malartic property and only 120 metres west of the boundary
with the contiguous Rand Malartic property.
The Partnership acquired a 100% interest in the
262-hectare Rand Malartic property in March
2019 from NSR Resources for $5
million, with NSR Resources retaining a 2% net smelter
return royalty that can be bought back in its entirety by the
Partnership for $7 million prior to
March 26, 2022.
Additional deep drilling capacity will be mobilized with
the objectives of filling the gap between hole RD21-4680A and the
current mineral resources at East Gouldie and testing the
mineralization farther towards the east and onto the Rand Malartic
property.
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 to refine the geological model.
The Company expects to spend a further $3.2
million (50% basis) on 32,000 metres (100% basis) of
exploration drilling in 2021 to test other regional targets at
Canadian Malartic, including the Rand Malartic and East Amphi
properties.
Goldex – Better Than Forecast Operating Costs;
Production Commences at South Zone Sector 2, Tonnage Expected to
Ramp Up in the Second Half of 2021
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
727
|
|
657
|
Tonnes of ore milled
per day
|
8,078
|
|
7,220
|
Gold grade
(g/t)
|
1.64
|
|
1.75
|
Gold production
(ounces)
|
34,650
|
|
33,883
|
Production costs per
tonne (C$)
|
$
|
39
|
|
$
|
40
|
Minesite costs per
tonne (C$)
|
$
|
39
|
|
$
|
39
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
650
|
|
$
|
589
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
623
|
|
$
|
558
|
Gold production in the first quarter of 2021 increased
when compared to the prior-year period primarily due to higher mill
throughput levels, partially offset by lower gold grade related to
the mining sequence. The higher throughput primarily resulted
from continuous operation through the quarter while, in the
prior-year period, the operations were temporarily suspended on
March 23, 2020 due to the
Quebec Order.
Production costs per tonne in the first quarter of 2021
were essentially the same when compared to the prior-year
period. Production costs per ounce in the first quarter of
2021 increased when compared to the prior-year period primarily due
to the lower gold grades processed as planned and the strengthening
of the Canadian dollar against the U.S. dollar, partially offset by
the timing of inventory.
Minesite costs per tonne in the first quarter of 2021 were
essentially the same when compared to the prior-year period.
Total cash costs per ounce in the first quarter of 2021 increased
when compared to the prior-year period due to the lower gold grades
processed as planned and the strengthening of the Canadian dollar
against the U.S. dollar.
Operational Highlights
- The Rail-Veyor operated above target at 7,065 tpd in the
first quarter of 2021 and for the first time the Rail-Veyor was
operated remotely from surface. The demonstrated ability to operate
the Rail-Veyor from surface is expected to provide additional
operational flexibility and help facilitate an expansion to 7,500
tpd early in 2022
- In the first quarter of 2021, production commenced in the
South Zone sector 2. Production from the higher grade South Zone is
expected to increase from the current rate of 375 tpd to 750 tpd in
the second half of 2021
- In May 2021, Goldex has a
planned five-day shutdown for underground maintenance to change
liners in the loading station silo and a concurrent seven-day
shutdown at surface for maintenance to the electrical substation
and the main frame of the secondary crusher
Kirkland Lake Project – 2021 Drilling Focused on
Infilling and Expanding Mineral Resources at Upper Beaver
Deposit
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 results from Upper Beaver were last reported
in the Company's news release dated February
11, 2021.
In the first quarter of 2021, drilling at Upper Beaver
totaled 67 holes (21,014 metres) focused on infill drilling and
mineral resource conversion. A highlight from the drilling
completed in the first quarter of 2021 was 62.6 g/t gold (28.1 g/t
capped at 90 g/t gold) and 0.97% copper over 16.8 metres at
approximately 1,200 metres depth. This is the best
intersection ever reported from Upper Beaver. An update on
the drilling program is expected to be released in the second
quarter of 2021 and an internal technical evaluation of the project
is expected to be completed in late 2021.
NUNAVUT
REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's Meliadine mine and Meadowbank Complex (including the
Amaruq satellite deposit), 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.
Meadowbank Complex – Long Haul Trucking Record Set in
March; Strong Mill Performance in the First Quarter of
2021
The 100% owned Meadowbank Complex is located approximately
110 kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of
the Meadowbank mine and mill and the Amaruq satellite deposit,
which is located 50 kilometres northwest of the Meadowbank
mine. The Meadowbank mine achieved commercial production in
March 2010, and mining activities at
the site were completed by the fourth quarter of 2019.
The Amaruq mining operation uses the existing
infrastructure at the Meadowbank minesite. Additional
infrastructure has also been built at the Amaruq site. Amaruq
ore is transported using long haul off-road type trucks to the mill
at the Meadowbank site for processing. The Amaruq satellite
deposit achieved commercial production on September 30, 2019.
Meadowbank Complex – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
924
|
|
579
|
Tonnes of ore milled
per day**
|
10,267
|
|
6,363
|
Gold grade
(g/t)
|
2.94
|
|
2.86
|
Gold production
(ounces)
|
79,965
|
|
49,341
|
Production costs per
tonne (C$)
|
$
|
122
|
|
$
|
206
|
Minesite costs per
tonne (C$)
|
$
|
130
|
|
$
|
186
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,092
|
|
$
|
1,811
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,123
|
|
$
|
1,644
|
In the first quarter of 2021, gold production increased
when compared to the prior-year period primarily due to higher
throughput resulting from strong operational performance,
optimization of processing facility throughput and expected higher
grade with deepening of the pit and the contribution from the IVR
open pit. In the first quarter of 2020, production activities
at Amaruq were still ramping up and then were hampered in mid-March
with the reduction in staffing levels related to the implementation
of COVID-19 measures.
Production costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
higher mill throughput and the timing of inventory, partially
offset by lower capitalized deferred stripping. Production
costs per ounce in the first quarter of 2021 decreased when
compared to the prior-year period due to the reasons described
above and higher gold grades, partially offset by the strengthening
of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
higher mill throughput, partially offset by lower capitalized
deferred stripping. Total cash costs per ounce in the first
quarter of 2021 decreased when compared to the prior-year period
due to the reasons described above and higher gold grades,
partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Operational Highlights
- Total tonnage milled was above target due to strong
mining and milling performance and softer ore conditions than
anticipated
- The long haul truck fleet showed improved performance
through the quarter, with the best month ever in March with over
343,000 tonnes hauled. The performance for the quarter was
negatively affected by more road closures than expected due to
severe weather conditions
- Gold production in the second quarter of 2021 is expected
to be similar to the first quarter of 2021. Road closure days
related to the caribou migration are included in the forecast and
production could be affected (favourably or unfavourably)
depending on the actual duration of the migration
- A planned five-day mill shut down was completed in
April 2021 to perform maintenance
work and replace SAG and ball mill liners
Project Highlights
- Underground ramp development at Amaruq was on target with
533 metres completed in the first quarter of 2021. Underground
development has commenced on the 350 level. The engineering and
procurement activities are ongoing and progressing well for the
mine production equipment fleet, high pressure grinding rolls,
ventilation system, mine dry and Genset installation
Meliadine Mine – Strong Mill Performance and
Advancement of Higher-Grade Stopes in the Mining Sequence Drive
Better Than Forecasted Production and Costs
Located near Rankin Inlet
in the Kivalliq District of Nunavut,
Canada, the Meliadine project was acquired in July
2010. The Company owns 100% of the 111,358-hectare
property. In February 2017, the
Company's Board of Directors approved the construction of the
Meliadine project and commercial production was declared on
May 14, 2019.
Meliadine Mine – Operating
Statistics*
|
|
|
|
All metrics exclude pre-commercial production tonnes
and ounces
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
338
|
|
307
|
Tonnes of ore milled
per day**
|
4,612
|
|
3,374
|
Gold grade
(g/t)
|
7.47
|
|
7.32
|
Gold production
(ounces)
|
88,003
|
|
69,975
|
Production costs per
tonne (C$)
|
$
|
226
|
|
$
|
234
|
Minesite costs per
tonne (C$)
|
$
|
219
|
|
$
|
241
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
679
|
|
$
|
775
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
628
|
|
$
|
799
|
*In the first
quarter of 2021, the Tiriganiaq open pit had 8,123 ounces of
pre-commercial gold production.
|
**Excluding tonnes milled on a pre-commercial
production basis, the mill operated for an equivalent of 73 days in
the first quarter of 2021
|
Gold production in the first quarter of 2021 increased
when compared to the prior-year period primarily due to higher
throughput as Meliadine delivered a strong performance over the
quarter with the processing rate at over 4,600 tpd and higher gold
grades than planned which resulted from an adjustment in
the mining sequence. In the first quarter of 2020, the
Meliadine processing plant was negatively affected by a
failure of the crusher apron feeder resulting in through-put levels
below expectations.
Production costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period due to higher
throughput, partially offset by the timing of inventory.
Production costs per ounce in the first quarter of 2021 decreased
when compared to the prior-year period due to lower production
costs per tonne and higher gold grades, partially offset by the
strengthening of the Canadian dollar against the U.S.
dollar.
Minesite costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
higher throughput. Total cash costs per ounce in the first
quarter of 2021 decreased when compared to the prior-year period
due to lower minesite costs per tonne and higher gold grades,
partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Operational Highlights
- Strong performance was achieved in almost all aspects of
the operation in the first quarter of 2021
- Both the underground and open pit mines produced at, or
slightly above, expected levels. Processed ore was on target
at an average rate of approximately 4,600 tpd, combined with higher
processed grade due to changes in the mining sequence which
facilitated earlier access to higher grade stopes
- The change in the mining sequence is expected to result
in lower gold production in the second quarter of 2021
- A planned four-day mill shut down was completed in
April 2021 to perform maintenance
work on the SAG feed end outer liners and discharge
grates
- Phase 2 expansion work is progressing as planned.
Throughput levels are expected to reach 4,800 tpd in the fourth
quarter of 2021 and the final expansion to 6,000 tpd is still
expected to be completed in 2025
- Exploration drilling in the first quarter of 2021 at both
the Pump South and Wesmeg deposits yielded favourable intersections
suggesting strong potential for resource continuity at depth.
Additional drilling is planned and results are expected to be
released in the second quarter of 2021
Water Management Update
- Waterline Activities – Permitting activities in
connection with the saline water discharge line are continuing. A
previously postponed technical meeting was completed on
January 11-12, 2021. The community
roundtable with the key communities of interest and the pre-hearing
conference were conducted on February
11 and 12, 2021. The public hearing was scheduled for
May 17-20 but has been
postponed until further notice due to COVID-19 related travel
restrictions
- Meliadine Water License Amendment – Permitting activities
in connection with the Water License Amendment are continuing. The
public hearing with the Nunavut Water Board was completed on
April 1-2, 2021. The Company expects
to receive the water license amendment approval in 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 the Company in light of the challenges
that have been caused by COVID-19
Hope Bay Mine – Optimization Efforts Ongoing;
Exploration Drilling Outlines High-Grade Mineralization at
Doris
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres
southwest of Cambridge Bay, the
Hope Bay mine was acquired in February 2021. The Company owns
100% of the 205,171-hectare property which includes the Hope Bay
and Elu greenstone belts. The 80-kilometre long Hope Bay
greenstone belt hosts three gold deposits (Doris, Madrid and Boston) with historical mineral reserves and
mineral resources and over 90 regional exploration targets.
At the time the Hope Bay mine was acquired, construction at the
Doris deposit was complete and commercial production had been
achieved in the second quarter of 2017. In 2021, the Company
expects to continue mining at the Doris deposit while undertaking
optimization efforts. The Doris mill facility, with a design
capacity of approximately 2,000 tpd, is currently being operated
with a three week on and a three week off rotation. The
Company has initiated a property wide exploration program and is
evaluating the Madrid and
Boston deposits for future
production.
Hope Bay Mine – Operating
Statistics
|
|
|
|
Three Months Ended
|
|
|
March 31, 2021*
|
|
Tonnes of ore milled
(thousands of tonnes)
|
39
|
|
Tonnes of ore milled
per day
|
672
|
|
Gold grade
(g/t)
|
10.77
|
|
Gold production
(ounces)
|
12,259
|
|
Production costs per
tonne (C$)
|
$
|
780
|
|
Minesite costs per
tonne (C$)
|
$
|
363
|
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,964
|
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
929
|
|
*All metrics are
for the period from February 2, 2021 to March 31,
2021.
|
Gold production in the first quarter of 2021 (from
February 2, 2021 to March 31, 2021) at Hope Bay was 12,259
ounces. Over that period, production costs per tonne were
C$780, production costs per ounce
were $1,964, minesite costs per tonne
were C$363 and total cash costs per
ounce were $929.
In the first quarter of 2021, gold sales at the Hope Bay
mine were 20,221 ounces. The additional 7,962 ounces of gold
sold in the quarter were in inventory at the time of
acquisition of the Hope Bay mine on February
2, 2021. While the costs related to those additional
gold sales are included in the production costs for the quarter,
only the tonnes of ore milled and gold produced from February 2, 2021 to March
31, 2021 are included for the production costs per tonne and
the production costs per ounce metrics. This approach results
in the significant differences between the production costs per
tonne and the minesite costs per tonne and between the production
costs per ounce and the total cash costs per ounce for the
quarter.
Operational Highlights
- Mill performance improvements continued in the first
quarter of 2021, with recoveries exceeding 90%
- Lateral development is currently averaging approximately
400 metres per month
- Ore is currently being sourced from the high-grade BTD
Zone, which shows potential for expansion (drill testing is
underway)
- Ore production (stopes and development drifts) ranged
from 600 to 750 tpd
- Development of the DCN Zone is expected to begin in the
second quarter of 2021 on levels 201 and 221. Access to this zone
is expected to increase underground
productivity
- Alimak raise development in the DCN Zone is expected to
begin in June 2021
- The first stope in DCN Zone is planned towards the end of
the third quarter 2021
The Company is reviewing several low-cost optimization
opportunities designed to improve mining and milling operations,
including additional leach tank capacity (spare tankage is
available from LaRonde), construction of a small mine dry and
maintenance facility separate from the mill building and the
purchase of a modular cemented rockfill ("CRF") plant for DCN
backfilling requirements.
An internal team has been established to evaluate expanded
production scenarios that would potentially involve the
Madrid and Boston deposits. A new internal
technical evaluation is expected in 2022. The Company
believes that Hope Bay has the potential to be a 250,000 to 300,000
ounces of gold per year operation.
Major Exploration Program Launched at Hope Bay;
Drilling Prioritizes Doris and Madrid Deposits in Initial Phase of
Program
The Company has launched a major delineation, conversion
and exploration drilling program at the Hope Bay property, using
three rigs from underground and three rigs at surface. In the
first quarter of 2021, 124 holes were drilled, totalling 18,100
metres at the Hope Bay property (including drilling completed by
TMAC prior to its acquisition by the Company on February 2, 2021).
The Company expects to spend $16.2
million for 69,600 metres of drilling at the Hope Bay
property in 2021, 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 regional
targets along the 80-kilometre-long Hope Bay greenstone belt.
The Company continues to evaluate exploration priorities and metres
allocated on each program and may adjust the allocation of drilling
during the course of 2021.
The exploration team at Hope Bay has been strengthened
with the addition of Agnico Eagle personnel working on-site, and
the large volume of historical exploration data are being
compiled and incorporated into the Company's exploration data
management system.
Currently, one drill rig is testing the northern extension
of the BTD Zone at Doris, two drill rigs have initiated infill
drilling in the DCN Zone at Doris in preparation for the ramp-up of
development activity to prepare for production and two rigs are
testing the Madrid deposit
approximately 8 kilometres south of Doris.
Selected recent drill intercepts from the Doris deposit at
the Hope Bay mine are set out in the table below. The pierce
points are shown on the Doris Deposit at Hope Bay Mine – Composite
Longitudinal Section, and drill hole collar coordinates are set out
in a table in the Appendix. The intercepts reported for Doris
show uncapped and capped gold grades over core length (estimated
true widths are currently unknown due to the folded nature of the
deposit). The geological interpretation is currently under
review and will be updated as new information becomes available
with further drilling.
Selected recent drill results from the Doris deposit at
Hope Bay
Drill
hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of midpoint
below surface (metres)
|
Core length
(metres)
|
Gold grade (g/t)
(uncapped)
|
Gold grade (g/t)
(capped)*
|
DBE21-50257
|
West Limb
|
106.5
|
108.6
|
341
|
2.1
|
19.6
|
19.3
|
and
|
West Limb
|
113.6
|
116.1
|
341
|
2.5
|
89.3
|
38.7
|
DBE21-50285
|
West Limb
|
60.6
|
77.3
|
343
|
16.7
|
9.8
|
9.8
|
including
|
West Limb
|
60.6
|
65
|
343
|
4.4
|
12.7
|
12.7
|
including
|
West Limb
|
71
|
76
|
343
|
5
|
17.1
|
17.1
|
DBE21-52366
|
West Limb
|
111.5
|
118
|
341
|
6.5
|
10.9
|
6.4
|
DBE21-52383
|
West Limb
|
112.7
|
118.7
|
342
|
6.1
|
28.5
|
15.2
|
including
|
West Limb
|
117.3
|
118.7
|
342
|
1.4
|
107.8
|
50
|
DBE21-52389
|
West Limb
|
124.2
|
142.3
|
341
|
18.1
|
4.9
|
4.9
|
including
|
West Limb
|
126.2
|
136
|
341
|
9.8
|
7.4
|
7.4
|
DCN21-50152
|
DCN
|
23.6
|
28
|
83
|
4.5
|
7.3
|
7.3
|
DCN21-50207
|
DCN
|
28.6
|
32.9
|
78
|
4.3
|
10.4
|
10.4
|
DCN21-50231
|
DCN
|
99.6
|
111
|
226
|
11.5
|
7.1
|
7.1
|
including
|
DCN
|
99.6
|
104
|
226
|
4.5
|
14.3
|
14.3
|
DCN21-52248
|
DCN
|
35.6
|
37.9
|
77
|
2.3
|
12
|
12
|
and
|
DCN
|
55.2
|
58.4
|
77
|
3.2
|
5.7
|
5.7
|
and
|
DCN
|
63
|
66
|
77
|
3
|
3.5
|
3.5
|
DCN21-52356
|
WV
|
84.2
|
90
|
203
|
5.8
|
4.2
|
4.2
|
DCN21-52357
|
WV
|
87.8
|
95.2
|
203
|
7.4
|
11.6
|
11.6
|
*Results from the Doris deposit at Hope Bay use a
capping factor of 50 g/t gold.
|
[Doris Deposit at Hope Bay – Composite Longitudinal
Section]
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.
The Company believes 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.
During the first quarter of 2021, three drill rigs were in
operation at the Doris area to sustain production with delineation
and definition drilling mostly in the BTD Extension. Results
were in line with expectations, with some local wide zones such as
in drill hole DBE21-50285 which intersected 9.8 g/t gold over 16.7
metres at 343 metres depth, including 17.1 g/t gold over 5.0 metres
at 343 metres depth. Farther north, drill hole DBE21-50257
intersected a more typical, narrower 19.3 g/t gold over 2.1 metres
at 341 metres depth and 38.7 g/t gold over 2.5 metres at 341 metres
depth. Conversion drilling was also initiated in the DCN Zone
to complete the 20 metre drill spacing program in the fringe of the
deposit with one rig at the top and one rig at the bottom of the
lens.
Another rig is currently being mobilized at Doris to
explore the BTD North Extension from surface in order to position
the underground exploration drift properly, moving towards the
north at depth.
In 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
Two rigs have resumed drilling in the shallow portion of
the Madrid deposit to test the
area around the ramp portal for ground conditions and to
investigate potential parallel structures in the hanging wall and
footwall of the main ore zone.
A review of the historical estimates for mineral reserves
and mineral resources at Hope Bay is under way. The Hope Bay
project is not included in the Company's 2020 year-end mineral
reserve and mineral resource estimate.
The Hope Bay Project has been subject to a significant
amount of diamond drilling both by TMAC and previous
operators. This drilling has delineated significant mineral
reserves and mineral resources. For further details on the
historical estimates of mineral reserves and mineral resources at
Hope Bay refer to the Company's press release dated February 11, 2021.
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.
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 an expansion to add an underground shaft and increase
expected mill throughput by 25% to 2.0 million tonnes per annum is
under construction. In Sweden, the Company has a 55% interest in the
Barsele exploration project.
Kittila – Records Set in March for Monthly Gold
Production and Tonnage Milled
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
494
|
|
420
|
Tonnes of ore milled
per day
|
5,489
|
|
4,615
|
Gold grade
(g/t)
|
4.37
|
|
4.21
|
Gold production
(ounces)
|
60,716
|
|
49,297
|
Production costs per
tonne (EUR)
|
€
|
83
|
|
€
|
94
|
Minesite costs per
tonne (EUR)
|
€
|
82
|
|
€
|
87
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
801
|
|
$
|
886
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
798
|
|
$
|
810
|
Gold production in the first quarter of 2021 increased
when compared to the prior-year period primarily due to higher
throughput resulting from the ramp-up towards its expanded capacity
of 2 million tonnes per annum, and to higher gold grades as
anticipated by the mining sequence.
Production costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
higher throughput levels, reduced contractor usage for development
and haulage and the timing of inventory. Production costs per
ounce in the first quarter of 2021 decreased when compared to the
prior-year period due to the lower production costs per tonne,
higher gold grades and the timing of inventory, partially offset by
the strengthening of the Euro against the U.S. dollar.
Minesite costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
higher throughput levels and reduced contractor usage for
development and haulage. Total cash costs per ounce in the
first quarter of 2021 decreased when compared to the prior-year
period due to lower minesite costs per tonne and higher gold
grades, partially offset by the strengthening of the Euro against
the U.S. dollar.
Operational Highlights
- In March 2021, Kittila set
records for monthly gold production (23,048 ounces) and monthly
mill feed volume (180,594 tonnes)
- Strong underground ore production (519,000 tonnes) was
achieved in the first quarter of 2021
- Decrease in underground mining costs primarily due to the
transition from an underground development contractor to Agnico
Eagle personnel
- Preliminary tertiary crushing tests showed a positive
impact on mill throughput. Testing will continue in the second
quarter of 2021
- Autonomous production drilling and haulage trials were
successful in the first quarter of 2021 and the Company is
analyzing the integration of this technology into its current
mining operations
- In the second quarter of 2021, there is a planned
eleven-day shutdown at the Kittila mill for the regular yearly
maintenance on the autoclave
Project Highlights
- The Kittila shaft project is 87% complete which is lower
than forecast. The delay has been caused by the impacts of COVID-19
travel restrictions on the shaft sinking contractor. Additional
local staff have been hired and the Company is making efforts to be
able to return to previously expected advancement rates
in the near future. At this point, the project remains on budget
but shaft commissioning could be delayed beyond the first half of
2022. A further update on the timeline of the project is expected
in the second quarter of 2021 earnings release
- Underground, the new main haulage level (900 metre level)
is progressing ahead of schedule and is on budget
Sale of Certain Non-Core European
Properties
On March 19, 2021, the
Company entered into a definitive agreement with Gold Line
Resources Ltd. ("GLR") and EMX Royalty Corporation ("EMX") to sell
its Oijarvi Gold Project located in central Finland and Solvik Gold Project located in
southern Sweden (collectively, the
"Projects") for aggregate consideration of $10.0 million, comprised of cash and shares of
each of GLR and EMX. The Company retained a 2% net smelter
return royalty on the Projects, 1% of which may be purchased at any
time by EMX for $1.0
million.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations have been a solid source of precious
metals production (gold and silver) with stable operating costs and
strong free cash flow since 2009.
Pinos Altos – Lower
Grades Offset by Higher Mill Throughput; Cubiro Development
Activities Ongoing with a Focus on Exploration Drilling
Access
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
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore
processed (thousands of tonnes)
|
493
|
|
480
|
Tonnes of ore
processed per day
|
5,478
|
|
5,275
|
Gold grade
(g/t)
|
1.91
|
|
2.36
|
Gold production
(ounces)
|
29,175
|
|
33,310
|
Production costs per
tonne
|
$
|
65
|
|
$
|
75
|
Minesite costs per
tonne
|
$
|
69
|
|
$
|
67
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,097
|
|
$
|
1,077
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
838
|
|
$
|
747
|
Gold production in the first quarter of 2021 decreased
when compared to the prior-year period primarily due to lower
grades resulting from adjustments to the mine sequence in response
to the challenging ground conditions at Cerro Colorado, partially offset by higher
throughput from the contribution of production from the Sinter
deposit.
Production costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
the timing of inventory, partially offset by higher processing
costs related to higher unit costs for grinding media and higher
diesel consumption to run generators during a one week power outage
that affected northern Mexico
in February 2021. Production costs per ounce in the first
quarter of 2021 increased when compared to the prior-year period
due to lower gold grades and higher processing costs per tonne for
the reasons described above, partially offset by the timing of the
inventory.
Minesite costs per tonne in the first quarter of 2021
increased when compared to the prior-year period primarily due to
higher processing costs for the reasons described above, partially
offset by higher throughput. Total cash costs per ounce in
the first quarter of 2021 increased when compared to the prior-year
period due to lower gold grades and higher minesite costs per
tonne, partially offset by higher by-product revenues from higher
average realized silver prices.
Operational Highlights
- In the first quarter of 2021, a planned 42 hour shutdown
was completed at the processing plant for the maintenance of
the SAG mill
- Underground production at Sinter progressed well and
contributed to the higher than planned throughput at the mill.
Stopes are backfilled with CRF. The CRF backfill process is
expected to be used until the end of the third quarter of 2021. The
paste fill project is expected to be ready for the fourth quarter
of 2021 at which point Sinter is expected to achieve its full
production capacity
Project Highlights
- At the Cubiro deposit, development productivity was
affected by a reduction in contractor staffing related to COVID-19
issues. The development plan was adjusted to prioritize the drifts
to access the western area of Cubiro and accelerate the exploration
program
- After several months of interruption related to COVID-19,
the ore sorting pilot plant was restarted in early March 2021 with ore from the Sinter
deposit
- At Reyna de Plata East,
the permitting process continues to be on track
Creston Mascota – Heap Leach Irrigation and Production
Extended into the Second Quarter of 2021; Reclamation Activities
Ongoing
The Creston Mascota heap leach open pit mine operated as a
satellite operation to the Pinos
Altos mine from late 2010 until open pit ore was depleted
during the third quarter of 2020; residual gold leaching is now
expected to continue through to the second quarter of
2021.
Creston Mascota Mine – Operating
Statistics
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore
processed (thousands of tonnes)
|
—
|
|
212
|
Tonnes of ore
processed per day
|
—
|
|
2,330
|
Gold grade
(g/t)
|
—
|
|
2.88
|
Gold production
(ounces)
|
4,252
|
|
18,184
|
Production costs per
tonne
|
$
|
—
|
|
$
|
56
|
Minesite costs per
tonne
|
$
|
—
|
|
$
|
54
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
568
|
|
$
|
651
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
193
|
|
$
|
423
|
Gold production in the first quarter of 2021 decreased
when compared to the prior-year period. With the depletion of
the Bravo pit in the third quarter
of 2020, gold production in the first quarter of 2021 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 first quarter of 2021, production costs per ounce
decreased when compared to the prior-year period primarily due to
lower overall costs as only reduced heap leach and site
administration costs remain. Total cash costs per ounce in
the first quarter of 2021 decreased when compared to the prior-year
period due to the reasons described above and higher by-product
revenues from higher realized silver prices.
In the first quarter of 2021, the major closure activities
progressed according to plan. Minor residual leaching is
expected to continue into the second quarter of 2021.
La India – Heap Leach
Irrigation Continues to Decline; Mining Activities Ongoing and
Leaching Activities Expected to Normalize in the 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
|
|
March 31, 2021
|
|
March 31, 2020
|
Tonnes of ore
processed (thousands of tonnes)
|
1,642
|
|
1,534
|
Tonnes of ore
processed per day
|
18,244
|
|
16,857
|
Gold grade
(g/t)
|
0.43
|
|
0.74
|
Gold production
(ounces)
|
17,033
|
|
22,926
|
Production costs per
tonne
|
$
|
10
|
|
$
|
13
|
Minesite costs per
tonne
|
$
|
10
|
|
$
|
12
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
948
|
|
$
|
875
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
936
|
|
$
|
778
|
Gold production in the first quarter of 2021 decreased
when compared to the prior-year period primarily due to lower
grades as anticipated by the mining sequence with the deepening of
the pit and lower irrigation of the heap leach starting in March
resulting from local water shortages, partially offset by higher
production rates following the commissioning of the new
agglomeration system.
Production costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach, the timing of inventory and by higher
production rates. Production costs per ounce in the first
quarter of 2021 increased when compared to the prior-year period
due to lower gold grades partially offset by the reasons described
above.
Minesite costs per tonne in the first quarter of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach, partially offset by higher production
rates. Total cash costs per ounce in the first quarter of
2021 increased when compared to the prior-year period due to lower
gold grades partially offset by the reasons described
above.
Operational Highlights
- Irrigation of the heap leach pads was reduced starting in
March 2021 to manage the low
water levels at the minesite that resulted from low rainfall in the
La India region in 2020
- Due to reduced solution circulation on the heap leach
pads in the second quarter of 2021, gold production is expected to
decline to approximately 7,000 to 8,000 ounces. 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 upgrading the
pumping system at Chipriona during the second quarter of 2021,
prior to the start of the rainy season
Project Highlights
- The La India heap leach pad construction phase III is
approximately 81% complete and it is expected to be finished in
May 2021
- Pilot plant testing on sulphide ores from Chipriona and
La India are expected to commence later in the year
Santa Gertrudis – 2021
Exploration Program Focused on Increasing Mineral Resources and
Targeting New Discoveries
Agnico Eagle acquired its 100% interest in the
Santa Gertrudis gold property in
November 2017. The 44,145-hectare property is located
approximately 180 kilometres north of Hermosillo in Sonora, Mexico.
The property was the site of historic heap-leach
operations that produced approximately 565,000 ounces of gold at a
grade of 2.1 g/t gold between 1991 and 2000. The property has
substantial surface infrastructure, including pre-stripped pits,
haul roads, water sources and several buildings.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated February 11,
2021.
In the first quarter of 2021, drilling at Santa Gertrudis totaled 22 holes (8,970
metres) focused on advancing Amelia, Espiritu Santo, Santa Teresa and other zones. In the
second quarter of 2021, additional drilling and metallurgical
testing are planned to continue expanding the mineral resources, to
generate and test new targets and to advance an oxide heap-leach
project concept. Drill hole results are expected to be
released in the second quarter of 2021 and 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, including foreign
currency translation gains and losses, mark to market adjustments,
non-recurring gains and losses and unrealized gains and losses on
financial instruments. Management uses adjusted net income to
evaluate the underlying operating performance of the Company and to
assist with the planning and forecasting of future operating
results. Management believes that adjusted net income is a
useful measure of performance because foreign currency translation
gains and losses, mark-to-market adjustments, non-recurring gains
and losses and unrealized gains and losses on financial instruments
do not reflect the underlying operating performance of the Company
and may not be indicative of future operating results.
Operating margin is not a recognized measure under IFRS
and this data may not be comparable to data presented by other gold
producers. This measure is calculated by excluding the
following from net income (loss) as recorded in the consolidated
financial statements: Income and mining taxes expense; other
expenses (income); foreign currency translation (gain) loss; gain
(loss) on derivative financial instruments; finance costs; general
and administrative expenses; amortization of property, plant and
mine development; exploration and corporate development expenses;
and impairment losses (reversals). The Company believes that
operating margin is a useful measure that represents the operating
performance of its mines associated with the ongoing production and
sale of gold and by-product metals. Management uses this
measure internally to plan and forecast future operating
results. This measure is intended to provide investors with
additional information about the Company's underlying operating
results and should be evaluated in conjunction with other data
prepared in accordance with IFRS.
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 April 29, 2021. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". All statements, other than
statements of historical fact, that address circumstances, events,
activities or developments that could, or may or will occur are
forward looking statements. When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include, without limitation:
statements regarding the impact of the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19 on the Company's
future operations, including its employees and overall business;
the Company's forward-looking guidance, including metal production,
estimated ore grades, recovery rates, project timelines, drilling
results, life of mine estimates, total cash costs per ounce, AISC
per ounce, minesite costs per tonne, other expenses, 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 about the
potential for the Hope Bay mine to be a 250,000 to 300,000 ounces
of gold per year operation; 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,
2020 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2020 ("Form 40-F") filed
with the U.S. Securities and Exchange Commission (the "SEC") as
well as: that governments, the Company or others do not take
additional measures in response to the COVID-19 pandemic or
otherwise that, individually or in the aggregate, materially affect
the Company's ability to operate its business; that cautionary
measures taken in connection with the COVID-19 pandemic do not
affect productivity; that measures taken relating to, or other
effects of, the COVID-19 pandemic do not affect the Company's
ability to obtain necessary supplies and deliver them to its mine
sites; that there are no significant disruptions affecting
operations; that production, permitting, development, expansion and
the ramp up of operations at each of Agnico Eagle's properties
proceeds on a basis consistent with current expectations and plans;
that the relevant metal prices, foreign exchange rates and prices
for key mining and construction supplies will be consistent with
Agnico Eagle's expectations; that Agnico Eagle's current estimates
of mineral reserves, mineral resources, mineral grades and metal
recovery are accurate; that there are no material delays in the
timing for completion of ongoing growth projects; that seismic
activity at the Company's operations at LaRonde, Goldex and other
properties is as expected by the Company; that the Company's
current plans to optimize production are successful; and that there
are no material variations in the current tax and regulatory
environment. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks
include, but are not limited to: the extent and manner to which
COVID-19, and measures taken by governments, the Company or others
to attempt to reduce the spread of COVID-19, may affect the
Company, whether directly or through effects on employee health,
workforce productivity and availability (including the ability to
transport personnel to the Meadowbank Complex, Meliadine mine and
the Hope Bay mine which operate as fly-in/fly-out camps), travel
restrictions, contractor availability, supply availability, ability
to sell or deliver gold dore bars or concentrate, availability of
insurance and the cost thereof, the ability to procure inputs
required for the Company's operations and projects or other aspects
of the Company's business; uncertainties with respect to the effect
on the global economy associated with the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19, any of which could
negatively affect financial markets, including the trading price of
the Company's shares and the price of gold, and could adversely
affect the Company's ability to raise capital; 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 (including
East Gouldie, East Malartic and
Odyssey), has been approved by Sylvie Lampron, Eng., Senior Project
Mine Engineer at Canadian Malartic
Corporation (for engineering) and Pascal Lehouiller, P.Geo., Senior Resource
Geologist at Canadian Malartic
Corporation (for geology), each of whom is a "Qualified
Person" for the purposes of NI 43-101.
Assumptions used for the December 31, 2020 mineral reserves estimate at
all mines and advanced projects reported by the
Company
|
Metal prices
|
Exchange rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
Peso per
US$1.00
|
US$ per
€1.00
|
Operations and projects
|
$1,250
|
$17
|
$2.75
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hammond Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
NI 43-101 requires mining companies to disclose mineral
reserves and mineral resources using the subcategories of "proven
mineral reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert
mineral resources to mineral reserves. These include, but are
not restricted to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors.
A proven mineral reserve is the economically mineable part
of a measured mineral resource. A proven mineral reserve
implies a high degree of confidence in the modifying factors.
A probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of
solid material of economic interest in or on the Earth's crust in
such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics are estimated with confidence sufficient
to allow the application of modifying factors to support detailed
mine planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all
of an inferred mineral resource exists, or is economically or
legally mineable.
A feasibility study is a comprehensive technical and
economic study of the selected development option for a mineral
project that includes appropriately detailed assessments of
applicable modifying factors, together with any other relevant
operational factors and detailed financial analysis that are
necessary to demonstrate, at the time of reporting, that extraction
is reasonably justified (economically mineable). The results
of the study may reasonably serve as the basis for a final decision
by a proponent or financial institution to proceed with, or
finance, the development of the project. The confidence level
of the study will be higher than that of a pre-feasibility
study.
Additional Information
Additional information about each of the mineral projects
that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d), as well as other information, can be found in
Technical Reports, which may be found at www.sedar.com. Other
important operating information can be found in the Company's AIF,
MD&A and Form 40-F.
Property/Project name and
location
|
Date of most recent Technical Report (NI 43-101)
filed onSEDAR
|
LaRonde, LaRonde Zone
5 & Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
December 31,
2020
|
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)
|
MEX19-153W
|
5334701
|
717701
|
309
|
196
|
72
|
1914
|
MEX20-166A
|
5334595
|
718289
|
308
|
194
|
66
|
1872
|
MEX20-177W
|
5334208
|
718319
|
310
|
190
|
74
|
1575
|
MEX20-182W
|
5334597
|
718146
|
308
|
208
|
61
|
1790
|
MEX20-185W
|
5334704
|
718008
|
308
|
177
|
66
|
1981
|
MEX20-186B
|
5333661
|
717868
|
309
|
181
|
70
|
1638
|
MEX20-188
|
5333736
|
717770
|
309
|
171
|
60
|
1571
|
MEX20-190A
|
5333669
|
717731
|
309
|
176
|
53
|
1681
|
MEX20-191W
|
5334355
|
718365
|
309
|
176
|
75
|
1785
|
MEX20-192W***
|
5334731
|
717441
|
309
|
192
|
73
|
1969
|
MEX20-193
|
5334553
|
718321
|
308
|
184
|
71
|
1962
|
MEX20-193WA
|
5334553
|
718321
|
308
|
182
|
71
|
1884
|
MEX20-193WAB
|
5333890
|
717112
|
309
|
195
|
66
|
1893
|
RD21-4680A
|
5334802
|
719734
|
307
|
176
|
71
|
2438
|
*Coordinate System
NAD 1983 UTM Zone 17N
|
Hope Bay exploration drill collar
coordinates
|
Drill Collar
Coordinates*
|
Drill Hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
DBE21-50257
|
7560277
|
433954
|
-341
|
95
|
15
|
205
|
DBE21-50285
|
7560173
|
433997
|
-343
|
90
|
17
|
100
|
DBE21-52366
|
7560277
|
433954
|
-341
|
105
|
12
|
190
|
DBE21-52383
|
7560277
|
433953
|
-342
|
109
|
15
|
196
|
DBE21-52389
|
7560277
|
433954
|
-341
|
105
|
18
|
211
|
DCN21-50152
|
7557874
|
433806
|
-83
|
76
|
-26
|
111
|
DCN21-50207
|
7557656
|
433802
|
-78
|
86
|
-37
|
105
|
DCN21-50231
|
7557790
|
433742
|
-226
|
90
|
37
|
129
|
DCN21-52248
|
7557827
|
433808
|
-77
|
90
|
-68
|
140
|
DCN21-52356
|
7557948
|
433694
|
-203
|
120
|
22
|
111
|
DCN21-52357
|
7557946
|
433694
|
-203
|
117
|
33
|
125
|
*Coordinate System
NAD 1983 UTM Zone 13N
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
|
|
|
Operating margin(i) by
mine:
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
$
|
93,728
|
|
$
|
45,194
|
LaRonde Zone 5
mine
|
12,598
|
|
10,851
|
Goldex mine
|
38,739
|
|
35,160
|
Meadowbank
Complex
|
49,950
|
|
3,813
|
Meliadine
mine
|
100,961
|
|
57,226
|
Hope Bay
mine
|
11,230
|
|
—
|
Canadian Malartic
mine(ii)
|
103,748
|
|
57,046
|
Kittila
mine
|
58,703
|
|
41,910
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
26,426
|
|
28,057
|
Creston Mascota
mine
|
7,634
|
|
17,591
|
La India
mine
|
18,275
|
|
18,928
|
Total operating
margin(i)
|
521,992
|
|
315,776
|
Amortization of
property, plant and mine development
|
181,115
|
|
153,509
|
Exploration,
corporate and other
|
111,289
|
|
138,936
|
Income before income
and mining taxes
|
229,588
|
|
23,331
|
Income and mining
taxes expense
|
93,440
|
|
44,896
|
Net income (loss) for
the period
|
$
|
136,148
|
|
$
|
(21,565)
|
Net income (loss) per
share — basic and diluted
|
$
|
0.56
|
|
$
|
(0.09)
|
|
|
|
|
Cash flows:
|
|
|
|
Cash provided by
operating activities
|
$
|
356,387
|
|
$
|
163,358
|
Cash used in
investing activities
|
$
|
(527,868)
|
|
$
|
(178,166)
|
Cash (used in)
provided by financing activities
|
$
|
(100,134)
|
|
$
|
954,830
|
|
|
|
|
Realized prices:
|
|
|
|
Gold
(per ounce)
|
$
|
1,780
|
|
$
|
1,579
|
Silver
(per ounce)
|
$
|
26.13
|
|
$
|
15.74
|
Zinc
(per tonne)
|
$
|
2,743
|
|
$
|
2,217
|
Copper
(per tonne)
|
$
|
8,958
|
|
$
|
5,410
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
|
|
|
Payable
production(iii):
|
|
|
|
Gold
(ounces):
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
75,389
|
|
55,223
|
LaRonde Zone 5
mine
|
17,689
|
|
14,464
|
Goldex mine
|
34,650
|
|
33,883
|
Meadowbank
Complex
|
79,965
|
|
49,341
|
Meliadine
mine
|
96,126
|
|
69,975
|
Hope Bay
mine
|
12,259
|
|
—
|
Canadian Malartic
mine(ii)
|
89,550
|
|
64,763
|
Kittila
mine
|
60,716
|
|
49,297
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
29,175
|
|
33,310
|
Creston Mascota
mine
|
4,252
|
|
18,184
|
La India
mine
|
17,033
|
|
22,926
|
Total gold
(ounces)
|
516,804
|
|
411,366
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
203
|
|
160
|
LaRonde Zone 5
mine
|
3
|
|
3
|
Goldex mine
|
—
|
|
1
|
Meadowbank
Complex
|
24
|
|
20
|
Meliadine
mine
|
7
|
|
6
|
Canadian Malartic
mine(ii)
|
82
|
|
97
|
Kittila
mine
|
3
|
|
3
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
373
|
|
517
|
Creston Mascota
mine
|
36
|
|
279
|
La India
mine
|
16
|
|
20
|
Total silver
(thousands of ounces)
|
747
|
|
1,106
|
|
|
|
|
Zinc
(tonnes)
|
1,867
|
|
510
|
Copper
(tonnes)
|
752
|
|
749
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
|
|
|
Payable metal sold:
|
|
|
|
Gold
(ounces):
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
75,285
|
|
38,273
|
LaRonde Zone 5
mine
|
14,314
|
|
14,258
|
Goldex mine
|
34,358
|
|
34,740
|
Meadowbank
Complex
|
76,281
|
|
58,581
|
Meliadine
mine
|
98,349
|
|
70,979
|
Hope Bay
mine
|
20,221
|
|
—
|
Canadian Malartic
mine(ii)(iv)
|
83,556
|
|
64,900
|
Kittila
mine
|
59,597
|
|
54,250
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
27,613
|
|
34,997
|
Creston Mascota
mine
|
4,878
|
|
16,408
|
La India
mine
|
18,834
|
|
23,497
|
Total gold
(ounces)
|
513,286
|
|
410,883
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
199
|
|
175
|
LaRonde Zone 5
mine
|
3
|
|
2
|
Meadowbank
Complex
|
19
|
|
22
|
Meliadine
mine
|
8
|
|
8
|
Canadian Malartic
mine(ii)(iv)
|
67
|
|
111
|
Kittila
mine
|
2
|
|
3
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
361
|
|
560
|
Creston Mascota
mine
|
50
|
|
263
|
La India
mine
|
19
|
|
22
|
Total silver
(thousands of ounces):
|
728
|
|
1,166
|
|
|
|
|
Zinc
(tonnes)
|
2,660
|
|
1,658
|
Copper
(tonnes)
|
754
|
|
754
|
AGNICO EAGLE MINES LIMITED
|
SUMMARY OF OPERATIONS KEY PERFORMANCE
INDICATORS
|
(thousands of United States dollars, except
where noted)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
|
|
|
Total cash costs per ounce of gold
produced — co-product
basis(v):
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
$
|
727
|
|
$
|
806
|
LaRonde Zone 5
mine
|
766
|
|
847
|
Goldex mine
|
623
|
|
558
|
Meadowbank
Complex
|
1,129
|
|
1,650
|
Meliadine
mine(vi)
|
630
|
|
801
|
Hope Bay
mine
|
929
|
|
—
|
Canadian Malartic
mine(ii)(vii)
|
640
|
|
763
|
Kittila
mine
|
799
|
|
811
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
1,165
|
|
990
|
Creston Mascota
mine
|
490
|
|
643
|
La India
mine
|
969
|
|
793
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
797
|
|
$
|
889
|
|
|
|
|
Total cash costs per ounce of gold
produced — by-product
basis(v):
|
|
|
|
Northern
Business
|
|
|
|
LaRonde
mine
|
$
|
490
|
|
$
|
682
|
LaRonde Zone 5
mine
|
761
|
|
845
|
Goldex mine
|
623
|
|
558
|
Meadowbank
Complex
|
1,123
|
|
1,644
|
Meliadine
mine(vi)
|
628
|
|
799
|
Hope Bay
mine
|
929
|
|
—
|
Canadian Malartic
mine(ii)(vii)
|
617
|
|
734
|
Kittila
mine
|
798
|
|
810
|
Southern
Business
|
|
|
|
Pinos Altos
mine
|
838
|
|
747
|
Creston Mascota
mine
|
193
|
|
423
|
La India
mine
|
936
|
|
778
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
734
|
|
$
|
836
|
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
ended March 31, 2021 includes 8,123 ounces of gold from the
Tiriganiaq open pit deposit at the Meliadine mine, which were
produced during this period as commercial production at the
Tiriganiaq open pit deposit has not yet been achieved. Payable
production for the three months ended March 31, 2020 includes 2,974
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.
|
|
(iv) The Canadian
Malartic mine's payable metal sold excludes the 5.0% net smelter
return royalty granted to Osisko Gold Royalties Ltd.
|
|
(v) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's calculation and
use of total cash cost per ounce of gold produced.
|
|
(vi) The Meliadine
mine's cost calculations per ounce of gold produced for the three
months ended March 31, 2021 exclude 8,123 ounces of payable gold
production, which were produced during this period as commercial
production at the Tiriganiaq open pit deposit has not yet been
achieved.
|
|
(vii) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three months ended March 31, 2020 exclude 2,974 ounces of
payable gold production which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020.
|
AGNICO EAGLE MINES LIMITED
|
CONDENSED INTERIM CONSOLIDATED BALANCE
SHEETS
|
(thousands of United States dollars, except share
amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
As at
|
|
As at
|
|
March 31, 2021
|
|
December 31, 2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
126,466
|
|
$
|
402,527
|
Short-term
investments
|
5,486
|
|
3,936
|
Restricted
cash
|
23,077
|
|
—
|
Trade
receivables
|
16,371
|
|
11,867
|
Inventories
|
669,551
|
|
630,474
|
Income taxes
recoverable
|
6,210
|
|
3,656
|
Fair value of
derivative financial instruments
|
36,862
|
|
35,516
|
Other current
assets
|
162,661
|
|
159,212
|
Total current
assets
|
1,046,684
|
|
1,247,188
|
Non-current
assets:
|
|
|
|
Goodwill
|
407,792
|
|
407,792
|
Property, plant and
mine development
|
7,518,813
|
|
7,325,418
|
Investments
|
282,158
|
|
375,103
|
Other
assets
|
297,369
|
|
259,254
|
Total
assets
|
$
|
9,552,816
|
|
$
|
9,614,755
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
362,473
|
|
$
|
363,801
|
Reclamation
provision
|
11,313
|
|
15,270
|
Interest
payable
|
25,509
|
|
12,184
|
Income taxes
payable
|
32,036
|
|
102,687
|
Lease
obligations
|
22,429
|
|
20,852
|
Fair value of
derivative financial instruments
|
1,508
|
|
904
|
Total current
liabilities
|
455,268
|
|
515,698
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,565,888
|
|
1,565,241
|
Lease
obligations
|
94,404
|
|
99,423
|
Reclamation
provision
|
710,168
|
|
651,783
|
Deferred income and
mining tax liabilities
|
969,830
|
|
1,036,061
|
Other
liabilities
|
67,940
|
|
63,336
|
Total
liabilities
|
3,863,498
|
|
3,931,542
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding — 243,810,637 common shares issued, less 770,936
shares held in trust
|
5,752,660
|
|
5,751,479
|
Stock
options
|
182,647
|
|
175,640
|
Contributed
surplus
|
37,254
|
|
37,254
|
Deficit
|
(315,251)
|
|
(366,412)
|
Other
reserves
|
32,008
|
|
85,252
|
Total
equity
|
5,689,318
|
|
5,683,213
|
Total liabilities and
equity
|
$
|
9,552,816
|
|
$
|
9,614,755
|
AGNICO EAGLE MINES LIMITED
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
(LOSS)
|
(thousands of United States dollars, except per
share amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
Revenues from mining
operations
|
$
|
934,392
|
|
$
|
671,878
|
|
|
|
|
COSTS, EXPENSES AND OTHER
INCOME
|
|
|
|
Production(i)
|
412,400
|
|
356,102
|
Exploration and
corporate development
|
28,709
|
|
29,643
|
Amortization of
property, plant and mine development
|
181,115
|
|
153,509
|
General and
administrative
|
44,933
|
|
30,543
|
Finance
costs
|
22,168
|
|
27,762
|
Loss on derivative
financial instruments
|
21,066
|
|
42,602
|
Foreign currency
translation (gain) loss
|
(3,078)
|
|
3,846
|
Other (income)
expenses
|
(2,509)
|
|
4,540
|
Income before income
and mining taxes
|
229,588
|
|
23,331
|
Income and mining
taxes expense
|
93,440
|
|
44,896
|
Net income (loss) for
the period
|
$
|
136,148
|
|
$
|
(21,565)
|
|
|
|
|
Net income (loss) per
share - basic and diluted
|
$
|
0.56
|
|
$
|
(0.09)
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
Basic
|
242,992
|
|
240,222
|
Diluted
|
244,187
|
|
240,222
|
|
|
|
|
Note:
|
|
|
|
(i) Exclusive of amortization, which is
shown separately.
|
|
|
|
AGNICO EAGLE MINES LIMITED
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(thousands of United States dollars, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2021
|
|
2020
|
OPERATING ACTIVITIES
|
|
|
|
Net income (loss) for
the period
|
$
|
136,148
|
|
$
|
(21,565)
|
Add (deduct)
adjusting items:
|
|
|
|
Amortization of
property, plant and mine development
|
181,115
|
|
153,509
|
Deferred income and
mining taxes
|
51,436
|
|
24,732
|
Unrealized (gain) loss
on currency and commodity derivatives
|
(741)
|
|
38,432
|
Unrealized loss on
warrants
|
31,810
|
|
1,863
|
Stock-based
compensation
|
18,036
|
|
15,018
|
Foreign currency
translation (gain) loss
|
(3,078)
|
|
3,846
|
Other
|
503
|
|
(11,048)
|
Changes in non-cash
working capital balances:
|
|
|
|
Trade
receivables
|
(4,504)
|
|
1,282
|
Income
taxes
|
(68,483)
|
|
(22,130)
|
Inventories
|
25,842
|
|
7,677
|
Other current
assets
|
(2,270)
|
|
11,923
|
Accounts payable and
accrued liabilities
|
(21,685)
|
|
(58,690)
|
Interest
payable
|
12,258
|
|
18,509
|
Cash provided by
operating activities
|
356,387
|
|
163,358
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
Additions to
property, plant and mine development
|
(181,886)
|
|
(168,811)
|
Acquisition of TMAC,
net of cash and cash equivalents
|
(185,898)
|
|
—
|
Advance to TMAC to
fund repayment of debt
|
(105,000)
|
|
—
|
Payment to
repurchase the Hope Bay royalty
|
(50,000)
|
|
—
|
Proceeds from sale of
property, plant and mine development
|
462
|
|
101
|
Net sales of
short-term investments
|
(1,550)
|
|
(2,144)
|
Net proceeds from
sale of equity securities and other investments
|
1,473
|
|
8,759
|
Purchases of equity
securities and other investments
|
(5,469)
|
|
(16,071)
|
Cash used in
investing activities
|
(527,868)
|
|
(178,166)
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
Proceeds from Credit
Facility
|
240,000
|
|
1,000,000
|
Repayment of Credit
Facility
|
(240,000)
|
|
—
|
Repayment of lease
obligations
|
(5,424)
|
|
(3,729)
|
Dividends
paid
|
(72,970)
|
|
(37,494)
|
Repurchase of common
shares for stock-based compensation plans
|
(34,606)
|
|
(35,930)
|
Proceeds on exercise
of stock options
|
8,401
|
|
28,074
|
Common shares
issued
|
4,465
|
|
3,909
|
Cash (used in)
provided by financing activities
|
(100,134)
|
|
954,830
|
Effect of exchange rate changes on cash and cash
equivalents
|
(4,446)
|
|
(6,646)
|
Net (decrease) increase in cash and cash equivalents
during the period
|
(276,061)
|
|
933,376
|
Cash and cash equivalents, beginning of
period
|
402,527
|
|
321,897
|
Cash and cash equivalents, end of
period
|
$
|
126,466
|
|
$
|
1,255,273
|
|
|
|
|
SUPPLEMENTAL CASH FLOW
INFORMATION
|
|
|
|
Interest
paid
|
$
|
7,726
|
|
$
|
7,232
|
Income and mining
taxes paid
|
$
|
108,653
|
|
$
|
46,127
|
AGNICO EAGLE MINES LIMITED
|
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE
MEASURES
|
(thousands of United States dollars, except
where noted)
|
|
Total Production Costs by Mine
|
|
Three Months Ended
March 31,
|
(thousands of United States
dollars)
|
2021
|
|
2020
|
LaRonde
mine
|
$
|
51,342
|
|
$
|
20,636
|
LaRonde Zone 5
mine
|
12,685
|
|
11,792
|
LaRonde
Complex
|
64,027
|
|
32,428
|
Goldex
mine
|
22,513
|
|
19,958
|
Meadowbank
Complex
|
87,339
|
|
89,366
|
Meliadine
mine
|
59,764
|
|
54,255
|
Hope Bay
mine
|
24,075
|
|
—
|
Canadian Malartic
mine(i)
|
55,468
|
|
48,656
|
Kittila
mine
|
48,660
|
|
43,671
|
Pinos Altos
mine
|
31,998
|
|
35,881
|
Creston Mascota
mine
|
2,417
|
|
11,837
|
La India
mine
|
16,139
|
|
20,050
|
Production costs per
the condensed interim consolidated statements of income
(loss)
|
$
|
412,400
|
|
$
|
356,102
|
|
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
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
75,389
|
|
|
|
55,223
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
51,342
|
|
$
|
681
|
|
$
|
20,636
|
|
$
|
374
|
Inventory and other
adjustments(iv)
|
3,491
|
|
46
|
|
23,856
|
|
432
|
Cash operating costs
(co-product basis)
|
$
|
54,833
|
|
$
|
727
|
|
$
|
44,492
|
|
$
|
806
|
By-product metal
revenues
|
(17,899)
|
|
(237)
|
|
(6,828)
|
|
(124)
|
Cash operating costs
(by-product basis)
|
$
|
36,934
|
|
$
|
490
|
|
$
|
37,664
|
|
$
|
682
|
|
|
|
|
|
|
|
|
LaRonde Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
487
|
|
|
|
412
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
51,342
|
|
$
|
105
|
|
$
|
20,636
|
|
$
|
50
|
Production costs
(C$)
|
C$
|
66,403
|
|
C$
|
136
|
|
C$
|
25,831
|
|
C$
|
63
|
Inventory and other
adjustments (C$)(v)
|
(1,989)
|
|
(4)
|
|
28,591
|
|
69
|
Minesite operating
costs (C$)
|
C$
|
64,414
|
|
C$
|
132
|
|
C$
|
54,422
|
|
C$
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5 Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
17,689
|
|
|
|
14,464
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
12,685
|
|
$
|
717
|
|
$
|
11,792
|
|
$
|
815
|
Inventory and other
adjustments(iv)
|
864
|
|
49
|
|
462
|
|
32
|
Cash operating costs
(co-product basis)
|
$
|
13,549
|
|
$
|
766
|
|
$
|
12,254
|
|
$
|
847
|
By-product metal
revenues
|
(89)
|
|
(5)
|
|
(33)
|
|
(2)
|
Cash operating costs
(by-product basis)
|
$
|
13,460
|
|
$
|
761
|
|
$
|
12,221
|
|
$
|
845
|
|
|
|
|
|
|
|
|
LaRonde Zone 5 Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
277
|
|
|
|
245
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
12,685
|
|
$
|
46
|
|
$
|
11,792
|
|
$
|
48
|
Production costs
(C$)
|
C$
|
16,154
|
|
C$
|
58
|
|
C$
|
15,803
|
|
C$
|
65
|
Inventory and other
adjustments (C$)(v)
|
1,643
|
|
6
|
|
660
|
|
2
|
Minesite operating
costs (C$)
|
C$
|
17,797
|
|
C$
|
64
|
|
C$
|
16,463
|
|
C$
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Complex
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
93,078
|
|
|
|
69,687
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
64,027
|
|
$
|
688
|
|
$
|
32,428
|
|
$
|
465
|
Inventory and other
adjustments(iv)
|
4,355
|
|
47
|
|
24,318
|
|
349
|
Cash operating costs
(co-product basis)
|
$
|
68,382
|
|
$
|
735
|
|
$
|
56,746
|
|
$
|
814
|
By-product metal
revenues
|
(17,988)
|
|
(194)
|
|
(6,861)
|
|
(98)
|
Cash operating costs
(by-product basis)
|
$
|
50,394
|
|
$
|
541
|
|
$
|
49,885
|
|
$
|
716
|
|
|
|
|
|
|
|
|
LaRonde Complex
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
764
|
|
|
|
657
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
64,027
|
|
$
|
84
|
|
$
|
32,428
|
|
$
|
49
|
Production costs
(C$)
|
C$
|
82,557
|
|
C$
|
108
|
|
C$
|
41,634
|
|
C$
|
63
|
Inventory and other
adjustments (C$)(v)
|
(346)
|
|
—
|
|
29,251
|
|
45
|
Minesite operating
costs (C$)
|
C$
|
82,211
|
|
C$
|
108
|
|
C$
|
70,885
|
|
C$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
34,650
|
|
|
|
33,883
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
22,513
|
|
$
|
650
|
|
$
|
19,958
|
|
$
|
589
|
Inventory and other
adjustments(iv)
|
(937)
|
|
(27)
|
|
(1,063)
|
|
(31)
|
Cash operating costs
(co-product basis)
|
$
|
21,576
|
|
$
|
623
|
|
$
|
18,895
|
|
$
|
558
|
By-product metal
revenues
|
(6)
|
|
—
|
|
—
|
|
—
|
Cash operating costs
(by-product basis)
|
$
|
21,570
|
|
$
|
623
|
|
$
|
18,895
|
|
$
|
558
|
|
|
|
|
|
|
|
|
Goldex Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
727
|
|
|
|
657
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
22,513
|
|
$
|
31
|
|
$
|
19,958
|
|
$
|
30
|
Production costs
(C$)
|
C$
|
28,558
|
|
C$
|
39
|
|
C$
|
26,239
|
|
C$
|
40
|
Inventory and other
adjustments (C$)(v)
|
(27)
|
|
—
|
|
(932)
|
|
(1)
|
Minesite operating
costs (C$)
|
C$
|
28,531
|
|
C$
|
39
|
|
C$
|
25,307
|
|
C$
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank Complex
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
79,965
|
|
|
|
49,341
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
87,339
|
|
$
|
1,092
|
|
$
|
89,366
|
|
$
|
1,811
|
Inventory and other
adjustments(iv)
|
2,938
|
|
37
|
|
(7,944)
|
|
(161)
|
Cash operating costs
(co-product basis)
|
$
|
90,277
|
|
$
|
1,129
|
|
$
|
81,422
|
|
$
|
1,650
|
By-product metal
revenues
|
(492)
|
|
(6)
|
|
(301)
|
|
(6)
|
Cash operating costs
(by-product basis)
|
$
|
89,785
|
|
$
|
1,123
|
|
$
|
81,121
|
|
$
|
1,644
|
|
|
|
|
|
|
|
|
Meadowbank Complex
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
924
|
|
|
|
579
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
87,339
|
|
$
|
95
|
|
$
|
89,366
|
|
$
|
154
|
Production costs
(C$)
|
C$
|
112,766
|
|
C$
|
122
|
|
C$
|
119,505
|
|
C$
|
206
|
Inventory and other
adjustments (C$)(v)
|
7,102
|
|
8
|
|
(11,925)
|
|
(20)
|
Minesite operating
costs (C$)
|
C$
|
119,868
|
|
C$
|
130
|
|
C$
|
107,580
|
|
C$
|
186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)(vi)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
88,003
|
|
|
|
69,975
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
59,764
|
|
$
|
679
|
|
$
|
54,255
|
|
$
|
775
|
Inventory and other
adjustments(iv)
|
(4,291)
|
|
(49)
|
|
1,787
|
|
26
|
Cash operating costs
(co-product basis)
|
$
|
55,473
|
|
$
|
630
|
|
$
|
56,042
|
|
$
|
801
|
By-product metal
revenues
|
(220)
|
|
(2)
|
|
(112)
|
|
(2)
|
Cash operating costs
(by-product basis)
|
$
|
55,253
|
|
$
|
628
|
|
$
|
55,930
|
|
$
|
799
|
|
|
|
|
|
|
|
|
Meliadine Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)(vii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
338
|
|
|
|
307
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
59,764
|
|
$
|
177
|
|
$
|
54,255
|
|
$
|
177
|
Production costs
(C$)
|
C$
|
76,409
|
|
C$
|
226
|
|
C$
|
71,927
|
|
C$
|
234
|
Inventory and other
adjustments (C$)(v)
|
(2,508)
|
|
(7)
|
|
2,118
|
|
7
|
Minesite operating
costs (C$)
|
C$
|
73,901
|
|
C$
|
219
|
|
C$
|
74,045
|
|
C$
|
241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
12,259
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
24,075
|
|
$
|
1,964
|
|
$
|
—
|
|
$
|
—
|
Inventory and other
adjustments(iv)
|
(12,691)
|
|
(1,035)
|
|
—
|
|
—
|
Cash operating costs
(co-product basis)
|
$
|
11,384
|
|
$
|
929
|
|
$
|
—
|
|
$
|
—
|
By-product metal
revenues
|
—
|
|
—
|
|
—
|
|
—
|
Cash operating costs
(by-product basis)
|
$
|
11,384
|
|
$
|
929
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
Hope Bay Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
39
|
|
|
|
—
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
24,075
|
|
$
|
616
|
|
$
|
—
|
|
$
|
—
|
Production costs
(C$)
|
C$
|
30,477
|
|
C$
|
780
|
|
C$
|
—
|
|
C$
|
—
|
Inventory and other
adjustments (C$)(v)
|
(16,306)
|
|
(417)
|
|
—
|
|
—
|
Minesite operating
costs (C$)
|
C$
|
14,171
|
|
C$
|
363
|
|
C$
|
—
|
|
C$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(i)(ii)(viii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
89,550
|
|
|
|
61,789
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
55,468
|
|
$
|
619
|
|
$
|
48,656
|
|
$
|
787
|
Inventory and other
adjustments(iv)
|
1,816
|
|
21
|
|
(1,507)
|
|
(24)
|
Cash operating costs
(co-product basis)
|
$
|
57,284
|
|
$
|
640
|
|
$
|
47,149
|
|
$
|
763
|
By-product metal
revenues
|
(2,030)
|
|
(23)
|
|
(1,773)
|
|
(29)
|
Cash operating costs
(by-product basis)
|
$
|
55,254
|
|
$
|
617
|
|
$
|
45,376
|
|
$
|
734
|
|
|
|
|
|
|
|
|
Canadian Malartic Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per
Tonne(i)(iii)(ix)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
2,631
|
|
|
|
2,321
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
55,468
|
|
$
|
21
|
|
$
|
48,656
|
|
$
|
21
|
Production costs
(C$)
|
C$
|
71,210
|
|
C$
|
27
|
|
C$
|
65,472
|
|
C$
|
28
|
Inventory and other
adjustments (C$)(v)
|
2,211
|
|
1
|
|
(2,526)
|
|
(1)
|
Minesite operating
costs (C$)
|
C$
|
73,421
|
|
C$
|
28
|
|
C$
|
62,946
|
|
C$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
60,716
|
|
|
|
49,297
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
48,660
|
|
$
|
801
|
|
$
|
43,671
|
|
$
|
886
|
Inventory and other
adjustments(iv)
|
(129)
|
|
(2)
|
|
(3,676)
|
|
(75)
|
Cash operating costs
(co-product basis)
|
$
|
48,531
|
|
$
|
799
|
|
$
|
39,995
|
|
$
|
811
|
By-product metal
revenues
|
(54)
|
|
(1)
|
|
(54)
|
|
(1)
|
Cash operating costs
(by-product basis)
|
$
|
48,477
|
|
$
|
798
|
|
$
|
39,941
|
|
$
|
810
|
|
|
|
|
|
|
|
|
Kittila Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
494
|
|
|
|
420
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
48,660
|
|
$
|
99
|
|
$
|
43,671
|
|
$
|
104
|
Production costs
(€)
|
€
|
41,068
|
|
€
|
83
|
|
€
|
39,665
|
|
€
|
94
|
Inventory and other
adjustments (€)(v)
|
(337)
|
|
(1)
|
|
(3,358)
|
|
(7)
|
Minesite operating
costs (€)
|
€
|
40,731
|
|
€
|
82
|
|
€
|
36,307
|
|
€
|
87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
29,175
|
|
|
|
33,310
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
31,998
|
|
$
|
1,097
|
|
$
|
35,881
|
|
$
|
1,077
|
Inventory and other
adjustments(iv)
|
1,987
|
|
68
|
|
(2,906)
|
|
(87)
|
Cash operating costs
(co-product basis)
|
$
|
33,985
|
|
$
|
1,165
|
|
$
|
32,975
|
|
$
|
990
|
By-product metal
revenues
|
(9,538)
|
|
(327)
|
|
(8,079)
|
|
(243)
|
Cash operating costs
(by-product basis)
|
$
|
24,447
|
|
$
|
838
|
|
$
|
24,896
|
|
$
|
747
|
|
|
|
|
|
|
|
|
Pinos Altos Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
493
|
|
|
|
480
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
31,998
|
|
$
|
65
|
|
$
|
35,881
|
|
$
|
75
|
Inventory and other
adjustments(v)
|
2,160
|
|
4
|
|
(3,491)
|
|
(8)
|
Minesite operating
costs
|
$
|
34,158
|
|
$
|
69
|
|
$
|
32,390
|
|
$
|
67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
4,252
|
|
|
|
18,184
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
2,417
|
|
$
|
568
|
|
$
|
11,837
|
|
$
|
651
|
Inventory and other
adjustments(iv)
|
(336)
|
|
(78)
|
|
(143)
|
|
(8)
|
Cash operating costs
(co-product basis)
|
$
|
2,081
|
|
$
|
490
|
|
$
|
11,694
|
|
$
|
643
|
By-product metal
revenues
|
(1,263)
|
|
(297)
|
|
(4,000)
|
|
(220)
|
Cash operating costs
(by-product basis)
|
$
|
818
|
|
$
|
193
|
|
$
|
7,694
|
|
$
|
423
|
|
|
|
|
|
|
|
|
Creston Mascota Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)*
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
—
|
|
|
|
212
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
2,417
|
|
$
|
—
|
|
$
|
11,837
|
|
$
|
56
|
Inventory and other
adjustments(v)
|
(2,417)
|
|
—
|
|
(361)
|
|
(2)
|
Minesite operating
costs
|
$
|
—
|
|
$
|
—
|
|
$
|
11,476
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Ounce of Gold
Produced(ii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
17,033
|
|
|
|
22,926
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
16,139
|
|
$
|
948
|
|
$
|
20,050
|
|
$
|
875
|
Inventory and other
adjustments(iv)
|
362
|
|
21
|
|
(1,873)
|
|
(82)
|
Cash operating costs
(co-product basis)
|
$
|
16,501
|
|
$
|
969
|
|
$
|
18,177
|
|
$
|
793
|
By-product metal
revenues
|
(562)
|
|
(33)
|
|
(332)
|
|
(15)
|
Cash operating costs
(by-product basis)
|
$
|
15,939
|
|
$
|
936
|
|
$
|
17,845
|
|
$
|
778
|
|
|
|
|
|
|
|
|
La India Mine
|
Three Months Ended
|
|
Three Months Ended
|
Per Tonne(iii)
|
March 31, 2021
|
|
March 31, 2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
1,642
|
|
|
|
1,534
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
16,139
|
|
$
|
10
|
|
$
|
20,050
|
|
$
|
13
|
Inventory and other
adjustments(v)
|
242
|
|
—
|
|
(2,238)
|
|
(1)
|
Minesite operating
costs
|
$
|
16,381
|
|
$
|
10
|
|
$
|
17,812
|
|
$
|
12
|
Notes:
|
|
(i) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
|
(ii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's use of total
cash costs per ounce.
|
|
(iii) Minesite costs
per tonne is not a recognized measure under IFRS and this data may
not be comparable to data reported by other gold producers. See
"Note Regarding Certain Measures of Performance" for more
information on the Company's use of minesite costs per
tonne.
|
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
|
(v) This inventory
and other adjustments reflect production costs associated with the
portion of production still in inventory and smelting, refining and
marketing charges associated with production.
|
|
(vi) The Meliadine
mine's cost calculations per ounce of gold produced for the three
months ended March 31, 2021 exclude 8,123 ounces of payable gold
production which were produced during this period, as commercial
production at the Tiriganiaq open pit deposit has not yet been
achieved.
|
|
(vii) The Meliadine
mine's cost calculations per tonne for the three months ended March
31, 2021 exclude 77,037 tonnes of ore from the Tiriganiaq open pit
deposit which were processed during this period, as commercial
production at the Tiriganiaq open pit deposit has not yet been
achieved.
|
|
(viii) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three months ended March 31, 2020 exclude 2,974 ounces of
payable gold production, which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020.
|
|
(ix) The Canadian
Malartic mine's cost calculations per tonne for the three months
ended March 31, 2020 exclude 135,065 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 Creston Mascota
mine's cost calculations per tonne for the three months ended March
31, 2021 exclude approximately $2.4 million of production costs
incurred during the three months ended March 31, 2021 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
March 31,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2021
|
|
2020
|
Production costs per
the condensed interim consolidated statements of income (loss)
(thousands of United States dollars)
|
$
|
412,400
|
|
$
|
356,102
|
Adjusted gold
production (ounces)(i)(ii)
|
508,681
|
|
408,392
|
Production costs per
ounce of adjusted gold production
|
$
|
811
|
|
$
|
872
|
Adjustments:
|
|
|
|
Inventory and other
adjustments(iii)
|
(14)
|
|
17
|
Total cash costs per
ounce of gold produced (co-product basis)(iv)
|
$
|
797
|
|
$
|
889
|
By-product metal
revenues
|
(63)
|
|
(53)
|
Total cash costs per
ounce of gold produced (by-product basis)(iv)
|
$
|
734
|
|
$
|
836
|
Adjustments:
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
175
|
|
177
|
General and
administrative expenses (including stock options)
|
88
|
|
75
|
Non-cash reclamation
provision, sustaining leases and other
|
10
|
|
11
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
1,007
|
|
$
|
1,099
|
By-product metal
revenues
|
63
|
|
53
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,070
|
|
$
|
1,152
|
Notes:
|
|
(i) Adjusted gold
production for the three months ended March 31, 2021 excludes 8,123
ounces of payable production of gold at the Meliadine mine which
were produced during this period, as commercial production at the
Tiriganiaq open pit deposit has not yet been achieved.
|
|
(ii) Adjusted gold
production for the three months ended March 31, 2020 excludes 2,974
ounces of payable production of gold at the Canadian Malartic mine,
which were produced prior to the achievement of commercial
production at the Barnat deposit on September 30, 2020.
|
|
(iii) 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.
|
|
(iv) 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 (Loss) to Operating
Margin(i)
|
|
|
|
|
|
Three Months Ended
March 31,
|
(thousands of United States
dollars)
|
2021
|
|
2020
|
Net income (loss) for the
period
|
$
|
136,148
|
|
$
|
(21,565)
|
Income and mining
taxes expense
|
93,440
|
|
44,896
|
Other (income)
expenses
|
(2,509)
|
|
4,540
|
Foreign currency
translation (gain) loss
|
(3,078)
|
|
3,846
|
Loss on derivative
financial instruments
|
21,066
|
|
42,602
|
Finance
costs
|
22,168
|
|
27,762
|
General and
administrative
|
44,933
|
|
30,543
|
Amortization of
property, plant, and mine development
|
181,115
|
|
153,509
|
Exploration and
corporate development
|
28,709
|
|
29,643
|
Operating margin(i)
|
$
|
521,992
|
|
$
|
315,776
|
Note:
|
(i) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
View original
content:http://www.prnewswire.com/news-releases/agnico-eagle-reports-first-quarter-2021-results--record-quarterly-gold-production-drilling-identifies-potentially-significant-extension-to-the-east-gouldie-zone-at-odyssey-updated-climate-change-strategy-outlined-in-2020-sustai-301280598.html
SOURCE Agnico Eagle Mines Limited