Agnico Eagle Reports Record Third Quarter 2015 Gold Production; Strong Operating Performance Leads to Increased Production Guidance and Reduced Costs for 2015
Based on the exploration success in the first half of the year at
several of the Company's projects, it was previously announced that
exploration expense would increase in the second half of the year. Total exploration expense for the third quarter was
As a result of this increased exploration expense the Amaruq project in
For the first nine months of 2015, the Company reported net income of
Third quarter 2015 cash provided by operating activities was
For the first nine months of 2015, cash provided by operating activities
was
"In the third quarter of 2015, we set a new record for quarterly gold production and lowered unit costs which resulted in strong operating cash flow. This has allowed us to continue to invest in our exploration and development pipeline, which represents the long-term future of our business," said
Sean Boyd, Agnico Eagle's Chief Executive Officer. "Our increased level of exploration activity continues to pay dividends as witnessed by the new discoveries at Kittila, Amaruq and El Barqueno. These projects are expected to be significant contributors to our production profile in the coming years," added Mr. Boyd.
Third Quarter 2015 Highlights Include:
-
Strong performance of Abitibi operations drives record quarterly gold
production and low costs - Payable gold production1 in the third quarter of 2015 was 441,124 ounces of gold at total cash
costs2 per ounce on a by-product basis of
\\$536 and all-in sustaining costs3 on a by-product basis ("AISC") of\\$759 per ounce - Two new production records set at Canadian Malartic - New quarterly records were set for average tonnes processed per calendar day (53,703 tonnes on a 100% basis), and ounces of gold produced in a quarter (153,206 ounces on a 100% basis)
-
2015 production guidance increased and cost forecasts reduced - Expected gold production for 2015 is now forecast to be approximately
1.65 million ounces (previously 1.6 million ounces) with total cash
costs on a by-product basis of approximately
\\$590 to \\$610 per ounce (previously\\$600 to \\$620 ) and AISC of approximately\\$840 to \\$860 per ounce (previously\\$870 to \\$890 ) expected - Amaruq drilling expands scope of known mineralization - Drilling indicates that the Whale Tail and Mammoth zones form a single mineralized system at least 2.3 kilometres long. In addition, the V zone (part of the IVR area) has been identified as a substantial mineralized structure, locally with abundant visible gold
- Drilling extends new parallel zone at Kittila - Two recent drill holes have confirmed continuity within the new parallel lens (now called the "Sisar lens"). Highlights include: 8.1 grams per tonne ("g/t") gold (uncapped) over 8.0 metres at 1,235 metres depth; and 5.5 g/t gold (uncapped) over 3.3 metres at 950 metres depth and 560 metres farther north along strike
-
Improved financial flexibility - In the third quarter, the Company's credit facility was amended and
\\$25 million was repaid. In addition, a 10-year,\\$50-million term note was issued to Ressources Qu?bec, a subsidiary of Investissement Qu?bec. Capital expenditures in 2015 are also forecast to be approximately\\$50 million lower than previously reported due to positive foreign currency adjustments and deferrals into future periods -
A quarterly dividend of
\\$0.08 per share was declared
| ________________________________ |
| 1 Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company, whether such products are shipped during the period or held as inventory at the end of the period |
| 2 Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see "Reconciliation of Non-GAAP Financial Performance Measures" below. Total cash costs per ounce of gold produced is calculated on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See "Note Regarding Certain Measures of Performance". For information about the Company's total cash costs per ounce on a co-product basis please see "Reconciliation of Non-GAAP Financial Performance Measures". |
| 3All-in sustaining costs is a non-GAAP measure and is used to show the full cost of gold production from current operations. For a reconciliation to production costs, see "Reconciliation of Non-GAAP Financial Performance Measures - Reconciliation of Production Costs to All-In Sustaining Costs Per Ounce of Gold Produced" below. The Company calculates all-in sustaining costs per ounce of gold produced on a by-product basis as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses divided by the amount of gold produced. All-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as all-in sustaining per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The Company's methodology for calculating all-in sustaining costs differ from the methodology used by other producers that disclose all-in sustaining costs. See "Note Regarding Certain Measures of Performance". The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council. |
Third Quarter Financial and Production Highlights
In the third quarter of 2015, strong operational performance continued at the Company's mines.
Payable gold production in the third quarter of 2015 was a record
441,124 ounces compared to 349,273 ounces in the third quarter of
2014. The higher level of production in the 2015 period was primarily
due to increased throughput levels at LaRonde, Goldex and Canadian
Total cash costs per ounce on a by-product basis for the third quarter
of 2015 were lower at
In the third quarter of 2015 the average value of the Canadian dollar,
Euro and Mexican Peso were 8%, 4%, and 23% lower, respectively than the
Company's 2015 currency price assumptions (see
Payable gold production for the first nine months of 2015 was 1,249,012
ounces, compared to payable gold production of 1,041,753 ounces in the
comparable 2014 period (which only included 76,639 ounces from Canadian
For the first nine months of 2015, total cash costs on a by-product
basis were
AISC for the third quarter of 2015 was lower at
For the first nine months of 2015, AISC was
Cash Position Remains Strong; Continued focus on Debt Reduction; Credit lines extended for an additional year through 2020
Cash and cash equivalents and short term investments increased to
The outstanding balance on the Company's
On
On
Total capital expenditures made by the Company in the third quarter of
2015 were
Total capital expenditures for the first nine months of 2015 were
Total sustaining capital expenditures made by the Company in the third
quarter were
Total sustaining capital expenditures for the first nine months of 2015
were
For 2015, capital expenditures are expected to total approximately
The Company recorded an income and mining taxes recovery of
Revised 2015 Guidance - Production Increased and Costs Lowered
As a result of strong operational performance in the third quarter of
2015, production guidance for 2015 has been increased to approximately
1.65 million ounces of gold (previously 1.6 million ounces) with total
cash costs on a by-product basis of approximately
Third Quarter 2015 Results Conference Call and Webcast Tomorrow
The Company's senior management will host a conference call on
Via Webcast:
A live audio webcast of the meeting will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-416-260-0113 or toll-free 1-800-524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay Archive:
Please dial 1-647-436-0148 or toll-free 1-888-203-1112, access code
3791390. The conference call replay will expire on
The webcast, along with presentation slides, will be archived for 180 days on www.agnicoeagle.com.
NORTHERN BUSINESS OPERATING REVIEW
ABITIBI REGION,
Agnico Eagle is currently
The 100% owned LaRonde mine in northwestern
The LaRonde mill processed an average of 5,992 tonnes per day ("tpd") in the third quarter of 2015, compared with an average of 4,634 tpd in the corresponding period of 2014. Throughput in the 2014 period was lower due to an approximate four week shutdown related to the upgrade and commissioning of the production and service hoist drives at the Penna shaft.
Minesite costs per tonne4 were approximately
For the first nine months of 2015, the LaRonde mill processed an average
of 6,145 tpd, compared to 5,668 tpd in the first nine months of 2014. Minesite costs per tonne were approximately
LaRonde's total cash costs per ounce on a by-product basis were
In the first nine months of 2015, LaRonde produced 194,760 ounces of
gold at total cash costs per ounce of
During the quarter, work was completed on the installation of the coarse ore conveyor system that extends from the 293 level to the crusher on the 280 level. The first phase of commissioning involving the discharge point and rock breaker is underway. The ore pass feeding the rock breaker is expected to be commissioned in the first quarter of 2016. The new conveyor should help to improve mining flexibility and reduce congestion in the deeper portions of the mine.
Studies are continuing to assess the potential to extend the mineral reserves and carry out mining activities between the 311 and 371 levels at LaRonde. At present, the mineral reserves extend to the 311 level, which is 3.1 kilometres below the surface. Drilling is ongoing to further expand the known mineral resource between the 311 and 341 levels. Additional holes are also being drilled to evaluate the extent of the mineralization down to the 371 level (a depth of 3.7 kilometres below the surface).
The exploration is currently focused on Zone 20, which is the active mining horizon. Additional drilling is also planned for Zone 6, which is located in the footwall to Zone 20.
| ___________________________________ |
| 4 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". |
In
Canadian
During the third quarter of 2015, the Canadian Malartic mill processed
an average of 53,703 tpd (on a 100% basis) compared with an average of
52,539 tpd in the corresponding period of 2014. Minesite costs per
tonne were approximately
For the first nine months of 2015, the Canadian Malartic mill processed
an average of 52,139 tpd compared with an average of 50,580 tpd in the
corresponding period of 2014 (on a 100% basis). Minesite costs per
tonne were approximately
For the third quarter of 2015, Agnico Eagle's share of production at the
Canadian Malartic mine was 76,603 ounces of gold at total cash costs
per ounce of
In the first nine months of 2015, Agnico Eagle's share of production at
the Canadian Malartic mine was 212,937 ounces of gold at total cash
costs per ounce of
The Partnership continues to work on initiatives to optimize the operations. Current opportunities include:
- Improving SAG mill and crusher liners to attempt to reduce the number of planned shutdowns to three per year (currently four per year). New liners were installed in Q3 2015
- Improving gyratory crusher availability by redirecting ore containing scrap steel to a separate crusher
- Maintaining mining throughput levels at two million tonnes per month in the North zone (which contains higher grades)
- Acquiring an additional remote excavator for use in the North zone
- Adding two larger production drills which is expected reduce drilling costs
- Increasing rate of waste rock backfilling of the Gouldie pit which reduces haulage distances and noise
Permitting activities for the Barnat Extension and deviation of
In
Update on Pandora and Kirkland Lake Projects
In the
At Pandora, underground development on the 101-W exploration drift from
the adjacent Lapa mine commenced in
In
Lapa - Zulapa Z7 Zone Continues to Deliver Higher Grades and Recoveries
The 100% owned Lapa mine in northwestern
The Lapa circuit, located at the LaRonde mill, processed an average of
1,583 tpd in the third quarter of 2015. This compares with an average
of 1,703 tpd in the third quarter of 2014. Throughput in the 2015
period was lower because of downtime related to repairs carried out on
the Lapa ball mill. Repairs were completed in
Minesite costs per tonne were
For the first nine months of 2015, the Lapa mill processed an average of
1,553 tpd, compared to 1,747 tpd in the first nine months of 2014. Minesite costs per tonne were approximately
Payable production in the third quarter of 2015 was 25,668 ounces of
gold at total cash costs per ounce on a by-product basis of
In the first nine months of 2015, Lapa produced 71,038 ounces of gold at
total cash costs per ounce of
At Lapa, 2015 is the last full year of production based on the current life of mine plan. Commercial production is forecast to end at the mine in the third quarter of 2016, but exploration activities (primarily on the Pandora property) are expected to continue. The permanent employees are expected to be relocated to the Company's other operations where they will replace contract positions.
Studies are underway to evaluate other internal opportunities to utilize the Lapa mill, which is located at the LaRonde Metallurgical complex.
Goldex - Development Rates Expected to Double by Year End; M Zone Yields Better Than Expected Grades
The 100% owned Goldex mine in northwestern
The Goldex mill processed an average of 6,199 tpd in the third quarter of 2015. This compares with an average of 5,851 tpd in the third quarter of 2014. The higher throughput in the 2015 period was due to more mature mining fronts and productivity improvements compared to the 2014 period.
Minesite costs per tonne were approximately
For the first nine months of 2015, the Goldex mill processed an average
of 6,377 tpd, compared to 5,647 tpd in the first nine months of 2014. Minesite costs per tonne were approximately
Payable gold production in the third quarter of 2015 was 32,068 ounces
of gold at total cash costs per ounce on a by-product basis of
In the first nine months of 2015, Goldex produced 87,780 ounces of gold
at total cash costs per ounce of
In late
In the third quarter of 2015, approximately 1,462 metres of development were carried out in the Deep zone. The ramp has now reached Level 115 on its way to an ultimate depth of level 120. In addition, full restoration of the surface ramp is expected to be completed by the end of this year. This ramp will improve on the ability to move equipment and supplies from the surface into the underground workings.
The advancement of the Deep 1 project at Goldex also has the potential to unlock other significant value creating opportunities including:
- Potential for additional mineral resource conversion in the Deep 1 zone
- Potential for mining at the Deep 2 (below level 120)
- Potential to develop the South zone (a narrow high-grade zone accessible via Deep 1 infrastructure)
- Potential development of the Akasaba West deposit, which is approximately 30 kilometres to the East of Goldex
An EIA on the Akasaba West deposit was submitted during the quarter, which allows the environmental review process to commence. The Company anticipates the EIA approval in late 2017 or early 2018.
FINLAND AND SWEDEN
Agnico Eagle's Kittila mine in
Kittila - Focus Remains On Optimizing Future Production Levels and Exploration Potential of the New Parallel Zone
The 100% owned Kittila mine in northern
The Kittila mill processed an average of 3,937 tpd in the third quarter of 2015 compared to the 2,559 tpd in the third quarter of 2014. Throughput in the 2014 period was lower due to a planned shutdown to complete the mill expansion. Minesite costs per tonne at Kittila were approximately €72 in the third quarter of 2015, compared to €86 in the third quarter of 2014. Costs decreased in the third quarter of 2015 due to the increased throughput when compared with the 2014 period.
For the first nine months of 2015, the Kittila mill processed an average of 3,981 tpd, compared to 2,895 tpd in the first nine months of 2014. Minesite costs per tonne were approximately €75 in the first nine months of 2015, compared to the €79 per tonne in the comparable 2014 period. Throughput was higher and costs were lower in the 2015 period due to the reasons outlined above.
Since the expansion, the mill has shown potential to operate in excess of 4,000 tpd and efforts are ongoing to optimize throughput and recovery rates. In addition, the Company is also working to optimize underground mining rates and evaluate the potential to develop new mining areas. Unit costs are expected to decrease once steady state operations are achieved.
Third quarter 2015 payable gold production at Kittila was 46,455 ounces
with total cash costs per ounce on a by-product basis of
In the first nine months of 2015, Kittila produced 133,095 ounces of
gold at total cash costs per ounce of
Drilling Extends New Parallel Zone at Kittila
Previous drilling from the surface at Kittila has outlined a significant zone of deep mineralization at Rimpi with potentially wider widths and better grades than those currently being mined. The main underground ramp at Kittila is being extended to reach the Rimpi zone and a new surface ramp is also being developed to access the shallower portions of the Rimpi deposit. The surface ramp had advanced a total of 825 metres to 134 metres depth by the end of September.
In April and July, the Company announced that drilling had encountered a
mineralized lens east of the main Kittila ore zone, within the sheared
and altered structure that hosts the known Kittila deposits (see
Two recent holes drilled from the exploration ramp have confirmed continuity within the Sisar lens. The table below shows the intercepts of the two new holes as well as those reported previously from the Sisar lens. Pierce points for all these holes are shown on the Kittila composite longitudinal section and two cross sections (500 metres apart). All intercepts reported for the Kittila mine show uncapped grades over estimated true widths, based on a current geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Kittila mine
| Drill hole | Zone |
From (metres) |
To (metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade (g/t) (uncapped) |
| ROU10-037* | Sisar | 1,299.0 | 1,311.0 | 1,197 | 5.6 | 10.2 |
| ROD14-003** | Sisar | 576.0 | 580.0 | 1,195 | 3.1 | 5.3 |
| ROD14-005** | Sisar | 628.0 | 641.2 | 1,258 | 7.0 | 7.0 |
| ROU15-600 | Sisar | 313.0 | 316.8 | 950 | 3.3 | 5.5 |
| ROU15-603*** | Sisar | 323.0 | 338.0 | 977 | 13.3 | 5.2 |
| ROD15-703 | Main zone | 378.0 | 389.0 | 1,028 | 6.1 | 14.3 |
| and | Main zone | 442.0 | 448.0 | 1,077 | 3.5 | 5.8 |
| and | Sisar | 641.8 | 654.0 | 1,235 | 8.0 | 8.1 |
|
* Previously reported in Company news release dated April 28, 2011 as
9.5 g/t over 6.0 metres. ** Previously reported in Company news release dated April 30, 2015 *** Previously reported in Company news release dated July 29, 2015 |
Kittila composite longitudinal section
Kittila composite cross sections - 7538000mN and 7538500mN
Hole ROD15-703 intersected two lenses in the main zone and one in the Sisar lens. In the main ore zone, this hole intersected 14.3 g/t gold over 6.1 metres at 1,028 metres depth, and 5.8 g/t gold over 3.5 metres at 1,077 metres depth. The upper intercept verifies, widens and increases the grade of the probable reserves between the Suuri and Roura trends, while the lower one extends the mineralization to the north, and will help to convert future resources. The hole then intersected 8.1 g/t gold over 8.0 metres at 1,235 metres depth in the Sisar lens, approximately 150 metres east of the main ore zone, strongly confirming the continuity of the lens. This intercept is between two previously reported intercepts at approximately the same depth: it is approximately 116 metres north of hole ROU10-037 and 250 metres south of hole ROD14-003.
At shallower depths and approximately 560 metres farther north, hole ROU15-600 intersected 5.5 g/t gold over 3.3 metres at 950 metres below surface, approximately 100 metres east of the main zone mineralization. This intercept is approximately 130 metres south of the previously reported intercept of hole ROU15-603.
Additional holes have been drilled in the vicinity of the new Sisar lens intercepts, and assays are pending. A second underground deep drill rig is expected to start operating in the fourth quarter 2015 and carry on into 2016 to determine continuity and test for extensions of the Sisar lens.
At the Kuotko deposit, located approximately 15 kilometres north of Kittila, drilling continues with a focus on infilling and expanding the existing inferred resource of approximately 170,000 ounces (1.8 million tonnes at 2.9 g/t gold). In addition, new mineralized zones have been identified outside of the known resource areas. Metallurgical testing is ongoing and unlike Kittila, the gold mineralization is free milling. Upon completion of the drilling, studies will be carried out to assess the viability of mining the deposit as a satellite open pit.
On
The Barsele property is known to contain intrusive-hosted gold
mineralization and gold-rich volcanogenic massive sulphide
mineralization. In 2015, the Company plans to spend approximately
In
With the Company's largest producing mine (Meadowbank) and two
significant development assets and exploration projects (Meliadine and
Amaruq) located in
Meadowbank - Increased Waste Stripping Capacity Provides Production Flexibility
The 100% owned Meadowbank mine in
The Meadowbank mill processed an average of 10,824 tpd in the third quarter of 2015, compared to the 11,492 tpd achieved in the third quarter of 2014. Mill throughput levels were lower in the 2015 period due to a higher percentage of Vault ore processed which has a higher hardness factor, which has an impact on both the primary and secondary grinding circuit efficiency.
Minesite costs per tonne were approximately
For the first nine months of 2015, the Meadowbank mill processed an
average of 11,009 tpd, compared to 11,365 tpd in the first nine months
of 2014. Mill throughput levels were lower in the 2015 period
primarily due to the reasons outlined above. Minesite costs per tonne
were approximately
Payable production in the third quarter of 2015 was 99,425 ounces of
gold at total cash costs per ounce on a by-product basis of
In the first nine months of 2015, Meadowbank produced 279,224 ounces of
gold at total cash costs per ounce of
In 2013, approximately 246,000 ounces were removed from mineral reserves
at the Vault deposit due to a change in the gold price assumption used
to calculate mineral reserves at
With the expansion, the Meadowbank mine is now expected to be in production until the third quarter of 2018 (approximately one year longer than originally forecast). The extension of the Meadowbank mine life is expected to help bridge the production gap between the end of production at Meadowbank and the potential start of production at a satellite operation at Amaruq (not yet approved for construction).
The Meadowbank production profile has been revised to reflect the need for additional waste stripping associated with the pit extension. As previously reported, the revised production profile is shown below:
| 2015 | 2016 | 2017 | 2018 | |||||||||||||
| February 2015 Guidance (gold ounces) | 400,000 | 365,000 | 290,000 | n/a | ||||||||||||
| July 2015 Guidance (gold ounces) | 400,000 | 310,000 | 345,000 | 130,000 | ||||||||||||
With additional mining equipment now in place, better planning and maintenance, revised bench heights, and shorter waste haulage distances, total tonnage moved increased by approximately 30% in the third quarter of 2015. The Company expects to exceed the previously planned stripping rate going forward, which could potentially provide additional production flexibility in the future.
Based on a new mining sequence in the Portage and Vault pits, production at Meadowbank in the fourth quarter of 2015 is expected to be similar to production in the third quarter.
Agnico Eagle has a 100% interest in the Amaruq project. The large
property consists of 114,761 hectares, approximately 50 kilometres
northwest of the Meadowbank mine. In
The phase two drilling program for 2015 was completed in mid-October. Total drilling at Amaruq for the year was 108,000 metres (378 holes)
completed. This release incorporates some of the drill results
received since the last results were released on
Phase Two Drill Results Continue to Expand Mineralized Zones
The phase two 2015 drilling program at the Amaruq project began in July
with several purposes, including step-out drilling to link Whale Tail
and
Recent intercepts from the project are set out in the table below and the drill hole collars are located on the Amaruq project local geology map. The Whale Tail deposit pierce points are shown on the Whale Tail composite longitudinal section, while the coordinates from the V zone drill-hole collars are given in a second table. All intercepts reported for the Amaruq project show capped grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Whale Tail (WT) deposit and the V zone area, Amaruq project
| Drill hole | Location |
From (metres) |
To (metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade (g/t) (uncapped) |
Gold grade (g/t) (capped)* |
| AMQ15-347 | WT | 444.0 | 461.8 | 383 | 11.4 | 6.3 | 6.3 |
| AMQ15-368 | V zone | 23.0 | 28.0 | 19 | 3.8 | 2.8 | 2.8 |
| AMQ15-369 | WT Shoot | 192.2 | 229.0 | 176 | 18.4 | 8.4 | 8.4 |
| AMQ15-390 | V zone | 6.7 | 18.0 | 9 | 7.3 | 3.5 | 3.5 |
| and | 48.2 | 55.5 | 40 | 5.2 | 90.2 | 30.1 | |
| AMQ15-422 | WT Shoot | 364.0 | 397.0 | 270 | 29.9 | 5.7 | 5.7 |
| including | 365.0 | 373.0 | 261 | 7.3 | 10.2 | 10.2 | |
| including | 388.0 | 397.0 | 279 | 8.2 | 10.0 | 10.0 | |
| AMQ15-442 | WT Shoot | 422.1 | 437.0 | 296 | 12.9 | 8.1 | 8.1 |
| including | 431.0 | 435.2 | 298 | 3.6 | 12.6 | 12.6 | |
| AMQ15-444 | WT Shoot | 432.4 | 453.4 | 359 | 14.8 | 6.3 | 6.3 |
| including | 448.5 | 453.4 | 366 | 4.2 | 10.3 | 10.3 | |
| and | 458.7 | 472.2 | 378 | 10.3 | 5.8 | 5.8 | |
| AMQ15-448 | V zone | 150.0 | 154.0 | 111 | 3.9 | 3.8 | 3.8 |
| AMQ15-450 |
WT-Mammoth gap |
213.5 | 243.0 | 166 | 16.9 | 4.5 | 4.5 |
| including | 213.5 | 223.0 | 158 | 6.7 | 7.6 | 7.6 | |
| AMQ15-461 | V zone | 103.6 | 130.5 | 115 | 23.4 | 22.9 | 7.9 |
| including | 103.6 | 107.8 | 104 | 3.7 | 8.8 | 8.8 | |
| including | 115.8 | 121.3 | 117 | 4.8 | 99.4 | 26.4 | |
| AMQ15-463 | WT Shoot | 381.3 | 417.6 | 293 | 29.7 | 6.8 | 6.8 |
| including | 399.5 | 414.5 | 298 | 11.5 | 8.8 | 8.8 | |
| AMQ15-470 | WT Shoot | 481.0 | 502.0 | 357 | 16.1 | 6.9 | 6.9 |
| including | 495.0 | 502.0 | 362 | 5.4 | 12.6 | 12.6 | |
| AMQ15-472 | V zone | 26.7 | 32.6 | 28 | 5.5 | 4.7 | 4.7 |
| and | 40.0 | 49.0 | 41 | 7.8 | 7.2 | 7.2 | |
| AMQ15-491 | V zone | 169.3 | 174.4 | 155 | 3.6 | 33.8 | 21.1 |
| *Holes at Amaruq use a capping factor of 60 g/t gold. |
Amaruq project exploration drill collar coordinates of selected holes
| Drill collar coordinates* | ||||||
| Drill hole ID | UTM North | UTM East |
Elevation (metres above sea level) |
Azimuth |
Dip (degrees) |
Length (metres) |
| AMQ15-368 | 7256422 | 606800 | 160 | 143 | -51 | 444 |
| AMQ15-390 | 7256476 | 606882 | 158 | 142 | -50 | 411 |
| AMQ15-448 | 7256294 | 607129 | 156 | 323 | -45 | 192 |
| AMQ15-461 | 7256294 | 606973 | 158 | 319 | -78 | 218 |
| AMQ15-472 | 7256407 | 606874 | 160 | 322 | -67 | 117 |
| AMQ15-491 | 7256303 | 606721 | 162 | 166 | -63 | 249 |
| * Coordinate System UTM Nad 83 zone 14 |
Whale Tail Deposit Composite Longitudinal Section
Recent drilling has confirmed that the Whale Tail and Mammoth zones form
a single mineralized system at least 2.3 kilometres long, between
surface and locally to a depth of 450 metres. A new intercept lies in
between several previously reported intercepts filling the former gap
between Whale Tail and the
Drilling from the opposite direction (north to south) has enhanced the understanding of the geometry of the deposit. Within the Whale Tail deposit is a thickened higher-grade ore shoot that is at least one kilometre long. This cigar-shaped shoot extends from surface (Whale Tail West) plunging shallowly eastward to a depth of 380 metres (Whale Tail East). The ore shoot remains open. Six recent intercepts within this shoot, from west to east, are hole AMQ15-369 that intersected 8.4 g/t gold over 18.4 metres at 176 metres depth, hole AMQ15-463 that yielded 6.8 g/t gold over 29.7 metres at 293 metres depth, hole AMQ15-422 that intersected 5.7 g/t gold over 29.9 metres at 270 metres depth, hole AMQ15-442 that intersected 8.1 g/t gold over 12.9 metres at 296 metres depth, hole AMQ15-470 that intersected 6.9 g/t gold over 16.1 metres at 357 metres depth and hole AMQ15-444, which yielded two intercepts 6.3 g/t gold over 14.8 metres at 359 metres depth, and 5.8 g/t gold over 10.3 metres at 378 metres depth. (Note that holes AMQ15-369 and AMQ15-444 were drilled from the south.)
The results described for the Whale Tail deposit are expected to have a positive impact on the size of the upcoming resources estimate for the Amaruq project.
Recent drilling and mapping has shown that the V zone is a significant mineralized structure dipping shallowly to the southeast, with locally abundant visible gold. The structure has been identified from outcrop on surface to a depth of 155 metres in recent drilling; it remains open at depth and laterally. Hole AMQ15-390 intersected the structure yielding 30.1 g/t gold over 5.2 metres at 40 metres depth. Approximately 100 metres to the south of this intercept, hole AMQ15-461 yielded 7.9 g/t gold over 23.4 metres at 115 metres depth. Approximately 150 metres southwest of hole AMQ15-390 was a third high-grade intersection in the V zone: hole AMQ15-491 intersected 21.1 g/t gold over 3.6 metres at 155 metres depth.
Other results from the V zone are included in the intercepts table above. These results will lead to a reinterpretation of the I, V, and R zones, which could have a positive impact on the year-end resource estimate. Although additional drilling will be required, the Company believes that the V zone could potentially be a second source of open pit ore at Amaruq.
Engineering and environmental baseline studies are underway to support
the permitting process for the Amaruq project as a satellite open pit
operation to the Meadowbank mine. The most recent drilling at depth in
Whale Tail also indicates that this deposit hosts high-grade intercepts
below the preliminary ultimate pit shell, suggesting that Whale Tail
has underground potential. An application to construct an all-weather
access road between Meadowbank and the Amaruq site was filed in the
first quarter of 2015 and is currently working its way through the
The Meliadine gold project was acquired in
In
The Meliadine property also hosts 3.3 million ounces of measured and indicated mineral resources (20.2 million tonnes at 5.06 g/t gold), and 3.5 million ounces of inferred mineral resources (14.1 million tonnes at 7.65 g/t gold). In addition, there are numerous other known gold occurrences in the 80-kilometre-long greenstone belt that require further evaluation.
Internal studies are ongoing to evaluate the potential to extract additional ounces from the Tiriganiaq and Wesmeg/Normeg deposits, which could potentially extend the mine life, improve the project economics, and increase the after-tax internal rate of return. These studies are expected to be completed in the first half of 2016.
At the end of the third quarter of 2015, approximately 1,960 metres of underground development had been completed, and additional underground equipment has been transported to site to complete the 2015 plan that calls for total underground development of approximately 2,500 metres. This development will allow for more cost-effective exploration and conversion drilling of the deeper parts of the Tiriganiaq and Wesmeg/Normeg deposits and help to optimize potential mining plans.
On
On
The timing of future capital expenditures on the Meliadine project beyond 2015 and the determination of whether to build a mine at Meliadine are subject to approval by Agnico Eagle's Board of Directors, which will be based on prevailing market conditions and outcomes of the various potential scenarios being evaluated.
Acquisition of
Agnico Eagle is currently studying options and alternatives in
This summer, an airborne VTEM magnetic and electromagnetic survey was flown over the new properties. A field crew initiated prospecting and sampling of areas with geophysical signatures typical of iron formation-hosted Archean/Proto-Proterozoic deposits, similar to those recognized at Meadowbank, Amaruq and Meliadine projects. Close to 800 rock samples have been collected from the properties. Initial results have identified a 2-kilometre-long structure from which 21 rock samples returned values above 1.0 g/t gold including seven values in excess of 10.0 g/t gold, with a maximum value of 42.0 g/t gold.
The new properties appear to be geologically similar to the Meadowbank, Meliadine and Amaruq projects where our exploration team has demonstrated the effectiveness of a systematic exploration approach and the strong mineral potential of this part of Nunavut. Assembling and analyzing the data collected this summer will assist in preparing a drill program for 2016 to further investigate the higher potential areas on the new properties.
SOUTHERN BUSINESS OPERATING REVIEW
Agnico Eagle's southern business operations are focused in Mexico. These operations have been the source of growing precious metals production (gold and silver), stable operating costs and strong free cash flow since 2009.
The 100% owned
The
Minesite costs per tonne at
For the first nine months of 2015, the
Payable production in the third quarter of 2015 was 47,725 ounces of
gold at total cash costs per ounce on a by-product basis of
In the first nine months of 2015,
The
The Company continues to evaluate a number of regional satellite
opportunities. A 6,000-metre in-fill and conversion drill program on
the Sinter deposit is 95% complete with assays still pending from about
50% of the holes. Results received to date indicate that there is good
potential to add this deposit to the
Creston Mascota Deposit at
The Creston Mascota deposit at
Approximately 434,300 tonnes of ore were stacked on the Creston Mascota
leach pad during the third quarter of 2015, compared to approximately
469,200 tonnes stacked in the third quarter of 2014. In the 2015
period, fewer tonnes were stacked mainly due to the adverse impact of
the rainy season on roads, loading and dumping zones, and the crushing
circuit. Minesite costs per tonne at Creston Mascota were
For the first nine months of 2015, approximately 1,569,800 tonnes of ore were stacked on the Creston Mascota leach pad, compared to 1,242,900 tonnes in the prior year period. In the 2015 period, additional ore was encountered outside the block model, which resulted in more tonnes being stacked in the first half of the year compared to the 2014 period.
For the first nine months of 2015, mine site costs per tonne at
Payable gold production at Creston Mascota in the third quarter of 2015
was 12,716 ounces at total cash costs per ounce on a by-product basis
of
Payable gold production for the first nine months of 2015 was 40,770
ounces at total cash costs per ounce of
In the third quarter of 2015, preparation and top soil recovery at the Phase IV heap leach pad were completed. The earthworks have been initiated, with commissioning expected by year-end 2015.
Over its mine life, Creston Mascota has added approximately 50% (179,000
ounces of contained gold) to its mineral reserves through infill
drilling and improved geological understanding. In
In
La
The La India mine property in
Approximately 1,193,900 tonnes of ore were stacked on the La India leach
pad during the third quarter of 2015, compared to approximately
1,190,100 tonnes stacked in the third quarter of 2014. Minesite costs
per tonne at La India were
In the first nine months of 2015, approximately 3,931,900 tonnes of ore
were stacked on the La India leach pad, compared to approximately
3,346,500 stacked in the first nine months of 2014. Minesite costs per
tonne at La India were
Payable gold production at La India in the third quarter of 2015 was
28,604 ounces at total cash costs per ounce of
For the first nine months of 2015, La India produced 80,930 ounces of
gold at total cash costs per ounce of
During the third quarter of 2015, construction activities on the heap leach expansion were negatively affected by the extraordinary rains during the period. However, any delays related to the rains are not expected to affect future production plans or capital costs.
Approximately 77% of the earthworks have been finished with full completion expected later in the fourth quarter of 2015. This leach pad expansion will provide the capacity for the current planned life-of-mine production at La India and approximately 5.0 million tonnes of additional stacking. Construction of the Main Zone haul road was completed during the third quarter of 2015.
In the third quarter of 2015, several activities were undertaken to improve the La India block model and potentially expand the mineral reserves and mineral resource. Infill drilling and favourable reconciliation data from the first full year of mining have led to an improved geological model for the Main Zone oxides. In addition, ongoing metallurgical investigations and field-proven production experience with the North Zone sulphides have shown that some of the transition and sulphide material in the Main Zone and La India Zone may also be amenable to heap leaching.
Inclusion of sulphide material into the pit designs at the La India mine
has the potential to add further oxides as well as sulphides into the
year-end 2015 mineral reserve and mineral resource estimate expected to
be reported in
El Barqueno - Drilling Continues with a Focus on Resource Delineation and Defining New Target Areas
Agnico Eagle has a 100% interest in the El Barqueno project. The
32,840-hectare property is in the
The El Barqueno project contains a number of known mineralized zones and
several prospects that require further evaluation. There are currently
10 drill rigs working to define the limits of the Azteca-Zapoteca,
To the end of the third quarter, 171 holes (42,940 metres) had been
drilled. Drilling will continue at El Barqueno until the end of the
year. The Company expects that this drilling will lead to the
estimation of an initial inferred mineral resource at the
Azteca-Zapoteca,
Conceptual design studies and additional metallurgical testing are
underway at El Barqueno. The project may host gold-silver deposits
that could potentially be developed into a series of open pits
utilizing heap leach processing, similar to Creston Mascota and the La
While it is too early to estimate the extent of the mineral resources
and the number of deposits with economic potential at El Barqueno, the
Company already has the experience of developing cost-efficient mining
operations in
Exploration expenditures at El Barqueno in 2015 are currently expected
to total approximately
Quarterly Dividend Declared
Agnico Eagle's Board of Directors has declared a quarterly cash dividend
of
Dividend Reinvestment Plan
Please follow the link below for information on the Company's dividend reinvestment program. Dividend Reinvestment Plan
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced
precious metals since 1957. Its eight mines are located in
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including ''total cash
costs per ounce'' and ''minesite costs per tonne'', "all-in sustaining
costs per ounce" and "adjusted net income" that are not recognized
measures under IFRS. These data may not be comparable to data
presented by other gold producers. For a reconciliation of these
measures to the most directly comparable financial information
presented in the consolidated financial statements prepared in
accordance with IFRS and for an explanation of how management uses
these measures, other than adjusted net income, see "Reconciliation of
Non-GAAP Financial Performance Measures" below. The total cash costs
per ounce of gold produced is presented on both a by-product basis
(deducting by-product metal revenues from production costs) and
co-product basis (before by-product metal revenues). 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, unsold concentrate 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
these measures to monitor the performance of the Company's mining
operations. As market prices for gold are quoted on a per ounce basis,
using the total cash costs per ounce of gold produced on a by-product
basis measure allows management to assess a mine's cash-generating
capabilities at various gold prices. All-in sustaining costs are used
to show the full cost of gold production from current operations. The
Company calculates all-in sustaining costs per ounce of gold produced
as the aggregate of total cash costs on a by-product basis, sustaining
capital expenditures (including capitalized exploration), general and
administrative expenses (including stock options) and reclamation
expenses divided by the amount of gold produced. The all-in sustaining
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. The Company's methodology for calculating all-in sustaining
costs may differ from to the methodology used by other producers that
disclose all-in sustaining costs. The Company may change the
methodology it uses to calculate all-in sustaining costs in the future,
including in response to the adoption of formal industry guidance
regarding this measure by the
Management also performs sensitivity analyses in order to quantify the effects of fluctuating exchange rates and metal prices. This news release also contains information as to estimated future total cash costs per ounce, all-in sustaining costs and minesite costs per tonne. The estimates are based upon the total cash costs per ounce, all-in sustaining costs and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
Notes to Investors Regarding the Use of Mineral Resources
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Mineral Resources
This document uses the terms "measured mineral resources" and "indicated
mineral resources". Investors are advised that while those terms are
recognized and required by Canadian regulations, the
Cautionary Note to Investors Concerning Estimates of Inferred Mineral Resources
This document also uses the term "inferred mineral resources". Investors are advised that while this term is recognized and required
by Canadian regulations, the
Scientific and Technical Data
The scientific and technical information contained in this news release relating to Northern Business operations has been approved by
Christian
Provencher, Ing., Vice-President,
Tim Haldane, P.Eng., Senior Vice-President,
Operations -
Alain Blackburn, Ing., Senior Vice-President, Exploration and
Guy Gosselin, Ing., 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 has been approved by
Daniel Doucet, Senior Corporate Director,
In prior periods, mineral reserves for all properties were typically
estimated using historic three-year average metals prices and foreign
exchange rates in accordance with the
For the mineral reserves estimate at the Canadian Malartic mine, the
Company has decided to continue to report the mineral reserves
estimated as of
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.
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.
The mineral reserves presented in this news release are separate from and not a portion of the mineral resources.
| Property/Project name and location |
Date of most recent Technical Report (NI 43-101) filed on SEDAR |
| LaRonde, Bousquet & Ellison, Quebec, Canada | March 23, 2005 |
| Canadian Malartic, Quebec, Canada | June 16, 2014 |
| Kittila, Kuotko and Kylmakangas, Finland | March 4, 2010 |
| Meadowbank, Nunavut, Canada | February 15, 2012 |
| Goldex, Quebec, Canada | October 14, 2012 |
| Lapa, Quebec, Canada | June 8, 2006 |
| Meliadine, Nunavut, Canada | February 11, 2015 |
| Hammond Reef, Ontario, Canada | July 2, 2013 |
| Upper Beaver (Kirkland Lake project), Ontario, Canada | November 5, 2012 |
| Pinos Altos and Creston Mascota, Mexico | March 25, 2009 |
| La India, Mexico | August 31, 2012 |
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) 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 and Form 40-F.
| AGNICO EAGLE MINES LIMITED | |||||||||||||
| SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||||||||
| (thousands of United States dollars, except where noted) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30, | September 30, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||
| Operating margin(i) by mine: | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | \\$ | 32,443 | \\$ | 14,696 | \\$ | 95,256 | \\$ | 86,523 | |||||
| Lapa mine | 13,813 | 13,748 | 39,852 | 38,140 | |||||||||
| Goldex mine | 20,681 | 17,237 | 55,459 | 40,045 | |||||||||
| Meadowbank mine | 55,493 | 52,504 | 151,670 | 265,193 | |||||||||
| Canadian Malartic mine(ii) | 44,293 | 33,224 | 123,748 | 36,892 | |||||||||
| Kittila mine | 21,528 | 12,128 | 65,088 | 45,315 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 37,217 | 28,837 | 116,407 | 101,318 | |||||||||
| Creston Mascota deposit at Pinos Altos | 8,898 | 8,032 | 30,275 | 23,173 | |||||||||
| La India mine(iii) | 19,845 | 13,189 | 59,269 | 39,835 | |||||||||
| Total operating margin(i) | 254,211 | 193,595 | 737,024 | 676,434 | |||||||||
| Amortization of property, plant and mine development | 157,968 | 117,396 | 451,480 | 294,533 | |||||||||
| Exploration, corporate and other | 110,258 | 69,884 | 221,937 | 195,051 | |||||||||
| Income (loss) before income and mining taxes | (14,015) | 6,315 | 63,607 | 186,850 | |||||||||
| Income and mining taxes (recovery) expense | (15,309) | 21,365 | 23,487 | 82,597 | |||||||||
| Net income (loss) for the period | \\$ | 1,294 | \\$ | (15,050) | \\$ | 40,120 | \\$ | 104,253 | |||||
| Net income (loss) per share — basic (US\\$) | \\$ | 0.01 | \\$ | (0.07) | \\$ | 0.19 | \\$ | 0.55 | |||||
| Net income (loss) per share — diluted (US\\$) | \\$ | 0.01 | \\$ | (0.10) | \\$ | 0.19 | \\$ | 0.53 | |||||
| Cash flows: | |||||||||||||
| Cash provided by operating activities | \\$ | 143,687 | \\$ | 71,244 | \\$ | 475,491 | \\$ | 504,368 | |||||
| Cash used in investing activities | \\$ | (100,365) | \\$ | (131,662) | \\$ | (258,733) | \\$ | (728,493) | |||||
| Cash provided by (used in) financing activities | \\$ | 7,396 | \\$ | (35,943) | \\$ | (180,300) | \\$ | 247,921 | |||||
| Realized prices (US\\$): | |||||||||||||
| Gold (per ounce) | \\$ | 1,119 | \\$ | 1,249 | \\$ | 1,173 | \\$ | 1,284 | |||||
| Silver (per ounce) | \\$ | 14.93 | \\$ | 17.72 | \\$ | 16.04 | \\$ | 19.33 | |||||
| Zinc (per tonne) | \\$ | 1,909 | \\$ | 2,365 | \\$ | 1,973 | \\$ | 2,227 | |||||
| Copper (per tonne) | \\$ | 4,538 | \\$ | 7,500 | \\$ | 5,193 | \\$ | 6,842 | |||||
| Payable production(iv): | |||||||||||||
| Gold (ounces): | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | 71,860 | 37,490 | 194,760 | 145,336 | |||||||||
| Lapa mine | 25,668 | 24,781 | 71,038 | 67,011 | |||||||||
| Goldex mine | 32,068 | 27,611 | 87,780 | 70,970 | |||||||||
| Meadowbank mine | 99,425 | 91,557 | 279,224 | 366,162 | |||||||||
| Canadian Malartic mine(ii) | 76,603 | 64,761 | 212,937 | 76,639 | |||||||||
| Kittila mine | 46,455 | 28,230 | 133,095 | 98,612 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 47,725 | 41,155 | 148,478 | 130,350 | |||||||||
| Creston Mascota deposit at Pinos Altos | 12,716 | 13,377 | 40,770 | 34,853 | |||||||||
| La India mine(iii) | 28,604 | 20,311 | 80,930 | 51,820 | |||||||||
| Total gold (ounces) | 441,124 | 349,273 | 1,249,012 | 1,041,753 | |||||||||
| Silver (thousands of ounces): | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | 221 | 224 | 619 | 918 | |||||||||
| Lapa mine | 1 | - | 3 | - | |||||||||
| Meadowbank mine | 39 | 34 | 191 | 85 | |||||||||
| Canadian Malartic mine(ii) | 76 | 66 | 217 | 76 | |||||||||
| Kittila mine | 3 | 1 | 8 | 4 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 606 | 425 | 1,744 | 1,307 | |||||||||
| Creston Mascota deposit at Pinos Altos | 40 | 26 | 109 | 60 | |||||||||
| La India mine(iii) | 67 | 44 | 208 | 111 | |||||||||
| Total Silver (thousands of ounces) | 1,053 | 820 | 3,099 | 2,561 | |||||||||
| Zinc (tonnes) | 739 | 2,230 | 2,502 | 8,083 | |||||||||
| Copper (tonnes) | 1,306 | 989 | 3,606 | 3,601 | |||||||||
| Payable metal sold: | |||||||||||||
| Gold (ounces): | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | 69,143 | 39,279 | 189,462 | 145,494 | |||||||||
| Lapa mine | 23,331 | 22,422 | 67,599 | 64,035 | |||||||||
| Goldex mine | 33,004 | 26,762 | 88,217 | 68,624 | |||||||||
| Meadowbank mine | 100,440 | 98,604 | 282,090 | 364,282 | |||||||||
| Canadian Malartic mine(ii)(v) | 72,651 | 60,093 | 199,433 | 76,470 | |||||||||
| Kittila mine | 47,070 | 28,209 | 135,436 | 97,157 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 49,327 | 41,143 | 145,162 | 131,011 | |||||||||
| Creston Mascota deposit at Pinos Altos | 12,911 | 12,793 | 40,847 | 33,758 | |||||||||
| La India mine(iii) | 28,983 | 19,265 | 79,684 | 48,922 | |||||||||
| Total gold (ounces) | 436,860 | 348,570 | 1,227,930 | 1,029,753 | |||||||||
| Silver (thousands of ounces): | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | 220 | 249 | 649 | 911 | |||||||||
| Meadowbank mine | 36 | 32 | 193 | 84 | |||||||||
| Canadian Malartic mine(ii)(v) | 53 | 57 | 186 | 72 | |||||||||
| Kittila mine | 3 | 1 | 7 | 4 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 620 | 430 | 1,682 | 1,367 | |||||||||
| Creston Mascota deposit at Pinos Altos | 39 | 18 | 107 | 50 | |||||||||
| La India mine(iii) | 66 | 42 | 205 | 102 | |||||||||
| Total Silver (thousands of ounces) | 1,037 | 829 | 3,029 | 2,590 | |||||||||
| Zinc (tonnes) | 650 | 3,936 | 2,650 | 8,067 | |||||||||
| Copper (tonnes) | 1,302 | 988 | 3,605 | 3,604 | |||||||||
| Total cash costs per ounce of gold produced - Co-product basis (US\\$)(vi): | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | \\$ | 701 | \\$ | 1,316 | \\$ | 795 | \\$ | 1,118 | |||||
| Lapa mine | 522 | 606 | 582 | 689 | |||||||||
| Goldex mine | 479 | 582 | 546 | 661 | |||||||||
| Meadowbank mine | 604 | 783 | 657 | 566 | |||||||||
| Canadian Malartic mine(ii) | 559 | 754 | 609 | 737 | |||||||||
| Kittila mine | 640 | 952 | 697 | 862 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 578 | 724 | 565 | 706 | |||||||||
| Creston Mascota deposit at Pinos Altos | 478 | 589 | 467 | 620 | |||||||||
| La India mine(iii) | 470 | 584 | 462 | 528 | |||||||||
| Weighted average total cash costs per ounce of gold produced | \\$ | 587 | \\$ | 794 | \\$ | 633 | \\$ | 716 | |||||
| Total cash costs per ounce of gold produced - By-product basis (US\\$)(vi): | |||||||||||||
| Northern Business | |||||||||||||
| LaRonde mine | \\$ | 558 | \\$ | 861 | \\$ | 620 | \\$ | 701 | |||||
| Lapa mine | 522 | 606 | 581 | 689 | |||||||||
| Goldex mine | 479 | 582 | 546 | 661 | |||||||||
| Meadowbank mine | 598 | 777 | 646 | 561 | |||||||||
| Canadian Malartic mine(ii) | 544 | 735 | 593 | 717 | |||||||||
| Kittila mine | 639 | 951 | 696 | 861 | |||||||||
| Southern Business | |||||||||||||
| Pinos Altos mine | 392 | 545 | 378 | 513 | |||||||||
| Creston Mascota deposit at Pinos Altos | 436 | 556 | 425 | 587 | |||||||||
| La India mine(iii) | 436 | 547 | 422 | 483 | |||||||||
| Weighted average total cash costs per ounce of gold produced | \\$ | 536 | \\$ | 716 | \\$ | 574 | \\$ | 627 | |||||
| Notes: | |
| (i) | Operating margin is calculated as revenues from mining operations less production costs. |
| (ii) | On June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by way of the previously announced court-approved plan of arrangement ("the Arrangement"). As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of Osisko (now Canadian Malartic Corporation) and Canadian Malartic GP, which now holds the Canadian Malartic mine. The information set out in this table reflects the Company's 50.0% interest in the Canadian Malartic mine since the date of acquisition. |
| (iii) | The La India mine achieved commercial production on February 1, 2014. |
| (iv) | 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. |
| (v) | The Canadian Malartic mine's payable metal sold excludes quantities of gold reflecting the 5.0% net smelter royalty granted to Osisko Gold Royalties Ltd., in connection with the Arrangement. |
| (vi) | Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates. |
| AGNICO EAGLE MINES LIMITED | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (thousands of United States dollars, except share amounts, IFRS basis) | ||||||||||
| (Unaudited) | ||||||||||
| As at | As at | |||||||||
| September 30, | December 31, | |||||||||
| 2015 | 2014 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | \\$ | 201,964 | \\$ | 177,537 | ||||||
| Short-term investments | 6,144 | 4,621 | ||||||||
| Restricted cash | 19,499 | 33,122 | ||||||||
| Trade receivables | 5,899 | 59,716 | ||||||||
| Inventories | 490,833 | 446,660 | ||||||||
| Income taxes recoverable | 58,473 | 1,658 | ||||||||
| Available-for-sale securities | 31,960 | 56,468 | ||||||||
| Fair value of derivative financial instruments | 321 | 4,877 | ||||||||
| Other current assets | 171,835 | 123,401 | ||||||||
| Total current assets | 986,928 | 908,060 | ||||||||
| Non-current assets: | ||||||||||
| Restricted cash | 765 | 20,899 | ||||||||
| Goodwill | 696,809 | 696,809 | ||||||||
| Property, plant and mine development | 5,082,342 | 5,155,865 | ||||||||
| Other assets | 38,764 | 27,622 | ||||||||
| Total assets | \\$ | 6,805,608 | \\$ | 6,809,255 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable and accrued liabilities | \\$ | 251,969 | \\$ | 209,906 | ||||||
| Reclamation provision | 8,349 | 6,769 | ||||||||
| Interest payable | 21,135 | 13,816 | ||||||||
| Income taxes payable | 9,495 | 19,328 | ||||||||
| Finance lease obligations | 13,533 | 22,142 | ||||||||
| Current portion of long-term debt | 14,932 | 52,182 | ||||||||
| Fair value of derivative financial instruments | 14,356 | 8,249 | ||||||||
| Total current liabilities | 333,769 | 332,392 | ||||||||
| Non-current liabilities: | ||||||||||
| Long-term debt | 1,203,266 | 1,322,461 | ||||||||
| Reclamation provision | 235,965 | 249,917 | ||||||||
| Deferred income and mining tax liabilities | 838,572 | 797,192 | ||||||||
| Other liabilities | 38,780 | 38,803 | ||||||||
| Total liabilities | 2,650,352 | 2,740,765 | ||||||||
| EQUITY | ||||||||||
| Common shares: | ||||||||||
| Outstanding - 217,647,221 common shares issued, less 233,525 shares held in trust | 4,695,297 | 4,599,788 | ||||||||
| Stock options | 213,602 | 200,830 | ||||||||
| Contributed surplus | 37,254 | 37,254 | ||||||||
| Deficit | (791,153) | (779,382) | ||||||||
| Accumulated other comprehensive income | 256 | 10,000 | ||||||||
| Total equity | 4,155,256 | 4,068,490 | ||||||||
| Total liabilities and equity | \\$ | 6,805,608 | \\$ | 6,809,255 | ||||||
| AGNICO EAGLE MINES LIMITED | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||||
| (thousands of United States dollars, except per share amounts, IFRS basis) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||
| September 30, | September 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| REVENUES | ||||||||||||||
| Revenues from mining operations | \\$ | 508,795 | \\$ | 463,388 | \\$ | 1,502,500 | \\$ | 1,393,676 | ||||||
| COSTS, EXPENSES AND OTHER INCOME | ||||||||||||||
| Production(i) | 254,584 | 269,793 | 765,476 | 717,242 | ||||||||||
| Exploration and corporate development | 37,085 | 20,521 | 84,352 | 41,566 | ||||||||||
| Amortization of property, plant and mine development | 157,968 | 117,396 | 451,480 | 294,533 | ||||||||||
| General and administrative | 25,675 | 24,991 | 74,468 | 92,776 | ||||||||||
| Impairment loss on available-for-sale securities | 7,076 | 462 | 8,106 | 2,881 | ||||||||||
| Finance costs | 19,674 | 20,852 | 57,341 | 55,249 | ||||||||||
| Loss on derivative financial instruments | 16,550 | 7,908 | 16,290 | 3,644 | ||||||||||
| Gain on sale of available-for-sale securities | (875) | (83) | (24,599) | (5,372) | ||||||||||
| Environmental remediation | 49 | 8,490 | 337 | 9,163 | ||||||||||
| Foreign currency translation loss (gain) | 902 | (4,679) | (6,009) | (3,170) | ||||||||||
| Other expenses (income) | 4,122 | (8,578) | 11,651 | (1,686) | ||||||||||
| Income (loss) before income and mining taxes | (14,015) | 6,315 | 63,607 | 186,850 | ||||||||||
| Income and mining taxes (recovery) expense | (15,309) | 21,365 | 23,487 | 82,597 | ||||||||||
| Net income (loss) for the period | \\$ | 1,294 | \\$ | (15,050) | \\$ | 40,120 | \\$ | 104,253 | ||||||
| Net income (loss) per share - basic | \\$ | 0.01 | \\$ | (0.07) | \\$ | 0.19 | \\$ | 0.55 | ||||||
| Net income (loss) per share - diluted | \\$ | 0.01 | \\$ | (0.10) | \\$ | 0.19 | \\$ | 0.53 | ||||||
| Weighted average number of common shares outstanding (in thousands): | ||||||||||||||
| Basic | 217,182 | 208,815 | 215,728 | 189,498 | ||||||||||
| Diluted | 217,712 | 209,687 | 216,627 | 190,481 | ||||||||||
| Note: | ||||
| (i) | Exclusive of amortization, which is shown separately. | |||
| AGNICO EAGLE MINES LIMITED | |||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| (thousands of United States dollars, IFRS basis) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| OPERATING ACTIVITIES | |||||||||||||||
| Net income (loss) for the period | \\$ | 1,294 | \\$ | (15,050) | \\$ | 40,120 | \\$ | 104,253 | |||||||
| Add (deduct) items not affecting cash: | |||||||||||||||
| Amortization of property, plant and mine development | 157,968 | 117,396 | 451,480 | 294,533 | |||||||||||
| Deferred income and mining taxes | 37,783 | 6,982 | 43,403 | 26,189 | |||||||||||
| Gain on sale of available-for-sale securities | (875) | (83) | (24,599) | (5,372) | |||||||||||
| Stock-based compensation | 8,928 | 7,552 | 28,777 | 30,032 | |||||||||||
| Impairment loss on available-for-sale securities | 7,076 | 462 | 8,106 | 2,881 | |||||||||||
| Foreign currency translation loss (gain) | 902 | (4,679) | (6,009) | (3,170) | |||||||||||
| Other | 4,874 | 19,065 | 7,007 | 26,971 | |||||||||||
| Adjustment for settlement of reclamation provision | (143) | (2,456) | (852) | (3,491) | |||||||||||
| Changes in non-cash working capital balances: | |||||||||||||||
| Trade receivables | 55,296 | 6,972 | 53,834 | 15,225 | |||||||||||
| Income taxes | (55,628) | 4,468 | (66,648) | 24,988 | |||||||||||
| Inventories | (71,510) | (54,962) | (49,475) | (25,059) | |||||||||||
| Other current assets | (25,761) | 4,490 | (48,784) | (315) | |||||||||||
| Accounts payable and accrued liabilities | 15,959 | (26,046) | 31,812 | 9,710 | |||||||||||
| Interest payable | 7,524 | 7,133 | 7,319 | 6,993 | |||||||||||
| Cash provided by operating activities | 143,687 | 71,244 | 475,491 | 504,368 | |||||||||||
| INVESTING ACTIVITIES | |||||||||||||||
| Additions to property, plant and mine development | (122,402) | (125,442) | (316,800) | (342,059) | |||||||||||
| Acquisitions, net of cash and cash equivalents acquired | - | - | (12,983) | (403,509) | |||||||||||
| Net purchases of short-term investments | (475) | (2,600) | (1,523) | (4,604) | |||||||||||
| Net proceeds from sale of available-for-sale securities and warrants | 4,724 | 493 | 61,035 | 40,635 | |||||||||||
| Purchase of available-for-sale securities and warrants | - | (13,861) | (19,433) | (27,246) | |||||||||||
| Decrease in restricted cash | 17,788 | 9,748 | 30,971 | 8,290 | |||||||||||
| Cash used in investing activities | (100,365) | (131,662) | (258,733) | (728,493) | |||||||||||
| FINANCING ACTIVITIES | |||||||||||||||
| Dividends paid | (15,374) | (14,546) | (44,572) | (39,459) | |||||||||||
| Repayment of finance lease obligations | (4,091) | (7,672) | (17,535) | (14,366) | |||||||||||
| Sale-leaseback financing | - | - | - | 1,027 | |||||||||||
| Proceeds from long-term debt | 250,000 | 230,000 | 325,000 | 960,000 | |||||||||||
| Repayment of long-term debt | (275,000) | (250,707) | (501,086) | (674,640) | |||||||||||
| Note issuance | 50,000 | - | 50,000 | - | |||||||||||
| Long-term debt financing | (1,493) | (2,127) | (1,493) | (2,127) | |||||||||||
| Repurchase of common shares for restricted share unit plan | - | - | (11,899) | (7,518) | |||||||||||
| Proceeds on exercise of stock options | 1,052 | 6,538 | 14,010 | 16,994 | |||||||||||
| Common shares issued | 2,302 | 2,571 | 7,275 | 8,010 | |||||||||||
| Cash provided by (used in) financing activities | 7,396 | (35,943) | (180,300) | 247,921 | |||||||||||
| Effect of exchange rate changes on cash and cash equivalents | (7,085) | (4,385) | (12,031) | (4,074) | |||||||||||
| Net increase (decrease) in cash and cash equivalents during the period | 43,633 | (100,746) | 24,427 | 19,722 | |||||||||||
| Cash and cash equivalents, beginning of period | 158,331 | 259,569 | 177,537 | 139,101 | |||||||||||
| Cash and cash equivalents, end of period | \\$ | 201,964 | \\$ | 158,823 | \\$ | 201,964 | \\$ | 158,823 | |||||||
| SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||
| Interest paid | \\$ | 10,358 | \\$ | 13,513 | \\$ | 46,256 | \\$ | 43,969 | |||||||
| Income and mining taxes paid | \\$ | 9,258 | \\$ | 16,911 | \\$ | 47,356 | \\$ | 38,232 | |||||||
| AGNICO EAGLE MINES LIMITED | ||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES | ||||||||||||
| (thousands of United States dollars, except where noted) | ||||||||||||
| (Unaudited) | ||||||||||||
| Total Production Costs by Mine | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | |||||||||
|
(thousands of United States dollars) |
||||||||||||
| LaRonde mine | \\$ | 49,243 | \\$ | 47,070 | \\$ | 140,242 | \\$ | 141,107 | ||||
| Lapa mine | 12,279 | 13,887 | 39,919 | 43,593 | ||||||||
| Goldex mine | 16,120 | 16,222 | 47,900 | 47,486 | ||||||||
| Meadowbank mine | 57,404 | 72,838 | 181,387 | 203,725 | ||||||||
| Canadian Malartic mine(i) | 42,008 | 47,882 | 125,380 | 66,215 | ||||||||
| Kittila mine | 31,116 | 23,963 | 93,892 | 80,347 | ||||||||
| Pinos Altos mine | 26,845 | 29,293 | 80,824 | 90,652 | ||||||||
|
Creston Mascota deposit at Pinos Altos |
6,101 | 7,644 | 19,208 | 20,278 | ||||||||
| La India mine(ii) | 13,468 | 10,994 | 36,724 | 23,839 | ||||||||
|
Production costs per the interim condensed consolidated statements of income (loss) |
\\$ | 254,584 | \\$ | 269,793 | \\$ | 765,476 | \\$ | 717,242 | ||||
|
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold
Produced(iii) by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne(iv) by Mine |
||||||||||||
| LaRonde Mine - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| (thousands of United States dollars, except as noted) |
Three Months Ended September 30, 2015 |
Three Months Ended September 30, 2014 |
Nine Months Ended September 30, 2015 |
Nine Months Ended September 30, 2014 |
||||||||
| Production costs | \\$ | 49,243 | \\$ | 47,070 | \\$ | 140,242 | \\$ | 141,107 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | 1,106 | 2,273 | 14,570 | 21,437 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 50,349 | \\$ | 49,343 | \\$ | 154,812 | \\$ | 162,544 | ||||
| By-product metal revenues | (10,291) | (17,078) | (34,125) | (60,722) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 40,058 | \\$ | 32,265 | \\$ | 120,687 | \\$ | 101,822 | ||||
| Gold production (ounces) | 71,860 | 37,490 | 194,760 | 145,336 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 701 | \\$ | 1,316 | \\$ | 795 | \\$ | 1,118 | ||||
| By-product basis | \\$ | 558 | \\$ | 861 | \\$ | 620 | \\$ | 701 | ||||
| LaRonde Mine - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 49,243 | \\$ | 47,070 | \\$ | 140,242 | \\$ | 141,107 | ||||
| Inventory and other adjustments(vi) | (1,454) | (3,488) | 266 | 326 | ||||||||
| Minesite operating costs | \\$ | 47,789 | \\$ | 43,582 | \\$ | 140,508 | \\$ | 141,433 | ||||
| Minesite operating costs (thousands of C\\$) | C\\$ | 55,417 | C\\$ | 47,474 | C\\$ | 169,680 | C\\$ | 154,785 | ||||
| Tonnes of ore milled (thousands of tonnes) | 551 | 426 | 1,678 | 1,547 | ||||||||
| Minesite costs per tonne (C\\$)(iv) | C\\$ | 101 | C\\$ | 111 | C\\$ | 101 | C\\$ | 100 | ||||
| Lapa Mine - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 12,279 | \\$ | 13,887 | \\$ | 39,919 | \\$ | 43,593 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | 1,117 | 1,141 | 1,407 | 2,608 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 13,396 | \\$ | 15,028 | \\$ | 41,326 | \\$ | 46,201 | ||||
| By-product metal revenues | (2) | (3) | (20) | (6) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 13,394 | \\$ | 15,025 | \\$ | 41,306 | \\$ | 46,195 | ||||
| Gold production (ounces) | 25,668 | 24,781 | 71,038 | 67,011 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 522 | \\$ | 606 | \\$ | 582 | \\$ | 689 | ||||
| By-product basis | \\$ | 522 | \\$ | 606 | \\$ | 581 | \\$ | 689 | ||||
| Lapa Mine - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 12,279 | \\$ | 13,887 | \\$ | 39,919 | \\$ | 43,593 | ||||
| Inventory and other adjustments(vi) | 406 | 1,086 | 297 | 2,544 | ||||||||
| Minesite operating costs | \\$ | 12,685 | \\$ | 14,973 | \\$ | 40,216 | \\$ | 46,137 | ||||
| Minesite operating costs (thousands of C\\$) | C\\$ | 16,614 | C\\$ | 16,310 | C\\$ | 50,610 | C\\$ | 50,492 | ||||
| Tonnes of ore milled (thousands of tonnes) | 146 | 157 | 424 | 477 | ||||||||
| Minesite costs per tonne (C\\$)(iv) | C\\$ | 114 | C\\$ | 104 | C\\$ | 119 | C\\$ | 106 | ||||
| Goldex Mine - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 16,120 | \\$ | 16,222 | \\$ | 47,900 | \\$ | 47,486 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | (744) | (147) | 66 | (559) | ||||||||
| Cash operating costs (co-product basis) | \\$ | 15,376 | \\$ | 16,075 | \\$ | 47,966 | \\$ | 46,927 | ||||
| By-product metal revenues | (2) | (5) | (15) | (16) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 15,374 | \\$ | 16,070 | \\$ | 47,951 | \\$ | 46,911 | ||||
| Gold production (ounces) | 32,068 | 27,611 | 87,780 | 70,970 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 479 | \\$ | 582 | \\$ | 546 | \\$ | 661 | ||||
| By-product basis | \\$ | 479 | \\$ | 582 | \\$ | 546 | \\$ | 661 | ||||
| Goldex Mine - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 16,120 | \\$ | 16,222 | \\$ | 47,900 | \\$ | 47,486 | ||||
| Inventory and other adjustments(vi) | (1,497) | (175) | (1,064) | (507) | ||||||||
| Minesite operating costs | \\$ | 14,623 | \\$ | 16,047 | \\$ | 46,836 | \\$ | 46,979 | ||||
| Minesite operating costs (thousands of C\\$) | C\\$ | 19,168 | C\\$ | 17,481 | C\\$ | 58,803 | C\\$ | 51,414 | ||||
| Tonnes of ore milled (thousands of tonnes) | 570 | 538 | 1,741 | 1,542 | ||||||||
| Minesite costs per tonne (C\\$)(iv) | C\\$ | 34 | C\\$ | 32 | C\\$ | 34 | C\\$ | 33 | ||||
| Meadowbank Mine - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 57,404 | \\$ | 72,838 | \\$ | 181,387 | \\$ | 203,725 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | 2,642 | (1,136) | 2,088 | 3,344 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 60,046 | \\$ | 71,702 | \\$ | 183,475 | \\$ | 207,069 | ||||
| By-product metal revenues | (543) | (570) | (3,210) | (1,615) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 59,503 | \\$ | 71,132 | \\$ | 180,265 | \\$ | 205,454 | ||||
| Gold production (ounces) | 99,425 | 91,557 | 279,224 | 366,162 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 604 | \\$ | 783 | \\$ | 657 | \\$ | 566 | ||||
| By-product basis | \\$ | 598 | \\$ | 777 | \\$ | 646 | \\$ | 561 | ||||
| Meadowbank Mine - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 57,404 | \\$ | 72,838 | \\$ | 181,387 | \\$ | 203,725 | ||||
| Inventory and other adjustments(vi) | (1,643) | (1,224) | (3,717) | 3,716 | ||||||||
| Minesite operating costs | \\$ | 55,761 | \\$ | 71,614 | \\$ | 177,670 | \\$ | 207,441 | ||||
| Minesite operating costs (thousands of C\\$) | 71,519 | C\\$ | 78,009 | C\\$ | 217,436 | C\\$ | 227,023 | |||||
| Tonnes of ore milled (thousands of tonnes) | 996 | 1,057 | 3,005 | 3,102 | ||||||||
| Minesite costs per tonne (C\\$)(iv) | C\\$ | 72 | C\\$ | 74 | C\\$ | 72 | C\\$ | 73 | ||||
| Canadian Malartic Mine - Total Cash Costs per Ounce of Gold Produced(i)(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 42,008 | \\$ | 47,882 | \\$ | 125,380 | \\$ | 66,215 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | 781 | 935 | 4,335 | (9,762) | ||||||||
| Cash operating costs (co-product basis) | \\$ | 42,789 | \\$ | 48,817 | \\$ | 129,715 | \\$ | 56,453 | ||||
| By-product metal revenues | (1,134) | (1,213) | (3,453) | (1,541) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 41,655 | \\$ | 47,604 | \\$ | 126,262 | \\$ | 54,912 | ||||
| Gold production (ounces) | 76,603 | 64,761 | 212,937 | 76,639 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 559 | \\$ | 754 | \\$ | 609 | \\$ | 737 | ||||
| By-product basis | \\$ | 544 | \\$ | 735 | \\$ | 593 | \\$ | 717 | ||||
| Canadian Malartic Mine - Minesite Costs per Tonne(i)(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 42,008 | \\$ | 47,882 | \\$ | 125,380 | \\$ | 66,215 | ||||
| Inventory and other adjustments(vi) | 52 | 719 | 1,784 | (10,029) | ||||||||
| Minesite operating costs | \\$ | 42,060 | \\$ | 48,601 | \\$ | 127,164 | \\$ | 56,186 | ||||
| Minesite operating costs (thousands of C\\$) | C\\$ | 55,010 | C\\$ | 52,942 | C\\$ | 160,136 | C\\$ | 61,491 | ||||
| Tonnes of ore milled (thousands of tonnes) | 2,470 | 2,417 | 7,117 | 2,815 | ||||||||
| Minesite costs per tonne (C\\$)(iv) | C\\$ | 22 | C\\$ | 22 | C\\$ | 23 | C\\$ | 22 | ||||
| Kittila Mine - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 31,116 | \\$ | 23,963 | \\$ | 93,892 | \\$ | 80,347 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | (1,401) | 2,915 | (1,088) | 4,677 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 29,715 | \\$ | 26,878 | \\$ | 92,804 | \\$ | 85,024 | ||||
| By-product metal revenues | (44) | (26) | (116) | (87) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 29,671 | \\$ | 26,852 | \\$ | 92,688 | \\$ | 84,937 | ||||
| Gold production (ounces) | 46,455 | 28,230 | 133,095 | 98,612 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 640 | \\$ | 952 | \\$ | 697 | \\$ | 862 | ||||
| By-product basis | \\$ | 639 | \\$ | 951 | \\$ | 696 | \\$ | 861 | ||||
| Kittila Mine - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 31,116 | \\$ | 23,963 | \\$ | 93,892 | \\$ | 80,347 | ||||
| Inventory and other adjustments(vi) | (1,442) | 2,817 | (1,243) | 4,313 | ||||||||
| Minesite operating costs | \\$ | 29,674 | \\$ | 26,780 | \\$ | 92,649 | \\$ | 84,660 | ||||
| Minesite operating costs (thousands of €) | € | 26,160 | € | 20,217 | € | 81,169 | € | 62,488 | ||||
| Tonnes of ore milled (thousands of tonnes) | 362 | 235 | 1,087 | 790 | ||||||||
| Minesite costs per tonne (€)(iv) | € | 72 | € | 86 | € | 75 | € | 79 | ||||
| Pinos Altos Mine - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 26,845 | \\$ | 29,293 | \\$ | 80,824 | \\$ | 90,652 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | 731 | 485 | 3,084 | 1,395 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 27,576 | \\$ | 29,778 | \\$ | 83,908 | \\$ | 92,047 | ||||
| By-product metal revenues | (8,865) | (7,344) | (27,842) | (25,229) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 18,711 | \\$ | 22,434 | \\$ | 56,066 | \\$ | 66,818 | ||||
| Gold production (ounces) | 47,725 | 41,155 | 148,478 | 130,350 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 578 | \\$ | 724 | \\$ | 565 | \\$ | 706 | ||||
| By-product basis | \\$ | 392 | \\$ | 545 | \\$ | 378 | \\$ | 513 | ||||
| Pinos Altos Mine - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 26,845 | \\$ | 29,293 | \\$ | 80,824 | \\$ | 90,652 | ||||
| Inventory and other adjustments(vi) | (498) | 96 | 449 | (1) | ||||||||
| Minesite operating costs | \\$ | 26,347 | \\$ | 29,389 | \\$ | 81,274 | \\$ | 90,651 | ||||
| Tonnes of ore processed (thousands of tonnes) | 546 | 607 | 1,778 | 1,887 | ||||||||
| Minesite costs per tonne (US\\$)(iv) | \\$ | 48 | \\$ | 48 | \\$ | 46 | \\$ | 48 | ||||
| Creston Mascota deposit at Pinos Altos - Total Cash Costs per Ounce of Gold Produced(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 6,101 | \\$ | 7,644 | \\$ | 19,208 | \\$ | 20,278 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | (27) | 233 | (171) | 1,317 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 6,074 | \\$ | 7,877 | \\$ | 19,037 | \\$ | 21,595 | ||||
| By-product metal revenues | (534) | (442) | (1,692) | (1,152) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 5,540 | \\$ | 7,435 | \\$ | 17,345 | \\$ | 20,443 | ||||
| Gold production (ounces) | 12,716 | 13,377 | 40,770 | 34,853 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 478 | \\$ | 589 | \\$ | 467 | \\$ | 620 | ||||
| By-product basis | \\$ | 436 | \\$ | 556 | \\$ | 425 | \\$ | 587 | ||||
| Creston Mascota deposit at Pinos Altos - Minesite Costs per Tonne(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 6,101 | \\$ | 7,644 | \\$ | 19,208 | \\$ | 20,278 | ||||
| Inventory and other adjustments(vi) | (137) | 115 | (429) | 1,033 | ||||||||
| Minesite operating costs | \\$ | 5,964 | \\$ | 7,759 | \\$ | 18,779 | \\$ | 21,311 | ||||
| Tonnes of ore processed (thousands of tonnes) | 434 | 469 | 1,570 | 1,243 | ||||||||
| Minesite costs per tonne (US\\$)(iv) | \\$ | 14 | \\$ | 17 | \\$ | 12 | \\$ | 17 | ||||
| La India Mine - Total Cash Costs per Ounce of Gold Produced(ii)(iii) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 13,468 | \\$ | 10,994 | \\$ | 36,724 | \\$ | 23,839 | ||||
| Adjustments: | ||||||||||||
| Inventory and other adjustments(v) | (21) | 869 | 697 | 1,685 | ||||||||
| Cash operating costs (co-product basis) | \\$ | 13,447 | \\$ | 11,863 | \\$ | 37,421 | \\$ | 25,524 | ||||
| By-product metal revenues | (975) | (746) | (3,286) | (2,175) | ||||||||
| Cash operating costs (by-product basis) | \\$ | 12,472 | \\$ | 11,117 | \\$ | 34,135 | \\$ | 23,349 | ||||
| Gold production (ounces) | 28,604 | 20,311 | 80,930 | 48,328 | ||||||||
| Total cash costs per ounce of gold produced (\\$ per ounce)(iii): | ||||||||||||
| Co-product basis | \\$ | 470 | \\$ | 584 | \\$ | 462 | \\$ | 528 | ||||
| By-product basis | \\$ | 436 | \\$ | 547 | \\$ | 422 | \\$ | 483 | ||||
| La India Mine - Minesite Costs per Tonne(ii)(iv) | ||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||
| (thousands of United States dollars, except as noted) | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||
| Production costs | \\$ | 13,468 | \\$ | 10,994 | \\$ | 36,724 | \\$ | 23,839 | ||||
| Inventory and other adjustments(vi) | (161) | 851 | 202 | 1,430 | ||||||||
| Minesite operating costs | \\$ | 13,307 | \\$ | 11,845 | \\$ | 36,926 | \\$ | 25,269 | ||||
| Tonnes of ore processed (thousands of tonnes) | 1,194 | 1,190 | 3,932 | 3,015 | ||||||||
| Minesite costs per tonne (US\\$)(iv) | \\$ | 11 | \\$ | 10 | \\$ | 9 | \\$ | 8 | ||||
| Notes: | |
| (i) | On June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by way of the Arrangement. As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of Osisko (now Canadian Malartic Corporation) and Canadian Malartic GP, which now holds the Canadian Malartic mine. The information set out in this table reflects the Company's 50.0% interest in the Canadian Malartic mine since the date of acquisition. |
| (ii) | The La India mine achieved commercial production on February 1, 2014. 3,492 ounces of payable gold production were excluded from the calculation of total cash costs per ounce of gold produced in the nine months ended September 30, 2014 as they were produced prior to the achievement of commercial production. |
| (iii) | Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates. |
| (iv) | Minesite costs per tonne 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 adjusting production costs as shown in the condensed interim consolidated statements of income (loss) for unsold concentrate inventory production costs, and then dividing by tonnes of ore milled. As the total cash costs per ounce of gold produced measure can be impacted by fluctuations in by-product metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS. |
| (v) | Under the Company's revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the sales margin on the portion of concentrate production not yet recognized as revenue. Other adjustments include the addition of smelting, refining and marketing charges to production costs. |
| (vi) | This inventory and other adjustment reflects production costs associated with unsold concentrates. |
Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced
|
(United States dollars per ounce of gold produced, except where noted) |
Three Months Ended September 30, 2015 |
Three Months Ended September 30, 2014 |
Nine Months Ended September 30, 2015 |
Nine Months Ended September 30, 2014 |
|||||||||||||
|
Production costs per the condensed interim consolidated statements of income (loss) (thousands of United States dollars) |
\\$ | 254,584 | \\$ | 269,793 | \\$ | 765,476 | \\$ | 717,242 | |||||||||
| Adjusted gold production (ounces)(i) | 441,124 | 349,273 | 1,249,012 | 1,038,261 | |||||||||||||
| Production costs per ounce of adjusted gold production(i) | \\$ | 577 | \\$ | 772 | \\$ | 613 | \\$ | 691 | |||||||||
| Adjustments: | |||||||||||||||||
| Inventory and other adjustments(ii) | 10 | 22 | 20 | 25 | |||||||||||||
| Total cash costs per ounce of gold produced (co-product basis)(iii) | \\$ | 587 | \\$ | 794 | \\$ | 633 | \\$ | 716 | |||||||||
| By-product metal revenues | (51) | (78) | (59) | (89) | |||||||||||||
| Total cash costs per ounce of gold produced (by-product basis)(iii) | \\$ | 536 | \\$ | 716 | \\$ | 574 | \\$ | 627 | |||||||||
| Adjustments: | |||||||||||||||||
| Sustaining capital expenditures (including capitalized exploration) | 163 | 267 | 172 | 227 | |||||||||||||
| General and administrative expenses (including stock options) | 58 | 72 | 60 | 89 | |||||||||||||
| Non-cash reclamation provision and other | 2 | 4 | 2 | 4 | |||||||||||||
| All-in sustaining costs per ounce of gold produced (by-product basis) | \\$ | 759 | \\$ | 1,059 | \\$ | 808 | \\$ | 947 | |||||||||
| By-product metal revenues | 51 | 78 | 59 | 89 | |||||||||||||
| All-in sustaining costs per ounce of gold produced (co-product basis) | \\$ | 810 | \\$ | 1,137 | \\$ | 867 | \\$ | 1,036 | |||||||||
| Notes: | |
| (i) | The La India mine achieved commercial production on February 1, 2014. 3,492 ounces of payable gold production were excluded from the calculation of total cash costs per ounce of gold produced in the nine months ended September 30, 2014 as they were produced prior to the achievement of commercial production. |
| (ii) | Under the Company's revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the sales margin on the portion of concentrate production not yet recognized as revenue. Other adjustments include the addition of smelting, refining and marketing charges to production costs. |
| (iii) | Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income (loss) for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates. |
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