Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless
otherwise noted)
TORONTO, Oct. 24, 2018 /PRNewswire/ - Agnico Eagle
Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") today reported quarterly net income of $17.1 million, or $0.07 per share, for the third quarter of
2018. This result includes non-cash foreign currency
translation gains on deferred tax liabilities and non-recurring tax
gains of $11.8 million ($0.05 per share) and non-cash foreign currency
translation gains, mark-to-market adjustments and derivative gains
on financial instruments of $4.1
million ($0.01 per
share). Excluding these items would result in adjusted net
income1 of $1.2 million or
$0.01 per share for the third quarter
of 2018. In the third quarter of 2017, the Company reported
net income of $72.5 million or
$0.31 per share.
Included in the third quarter of 2018 net income, and not
adjusted above, is non-cash stock option expense of $3.8 million ($0.02
per share).
In the first nine months of 2018, the Company reported net
income of $67.0 million, or
$0.29 per share. This compares
with the first nine months of 2017, when net income was
$203.3 million, or $0.89 per share.
In the third quarter of 2018, cash provided by operating
activities was $137.6 million
($155.0 million before changes in
non-cash components of working capital), as compared with the third
quarter of 2017 when cash provided by operating activities was
$194.1 million ($207.9 million before changes in non-cash
components of working capital).
In the first nine months of 2018, cash provided by operating
activities was $465.4 million
($495.1 million before changes in
non-cash components of working capital), as compared with the first
nine months of 2017 when cash provided by operating activities was
$600.6 million ($629.9 million before changes in non-cash
components of working capital).
The decrease in net income and cash provided by operating
activities during the current quarter compared to the prior year
period was mainly due to lower gold sales volumes, lower realized
gold prices, lower by-product revenue and expected higher costs at
several operations, principally at LaRonde, Kittila and the
Company's Mexican operations. Lower gold sales were primarily
as a result of the expected lower gold production in the period
primarily due to reduced throughput levels at Meadowbank as the
mine transitions through the last full year of mining at site.
The decrease in net income and cash provided by operating
activities in the first nine months of 2018 compared to the prior
year period was mainly due to lower gold sales volumes, lower
by-product revenue and expected higher costs at several operations,
principally at Meadowbank, Kittila and the Company's Mexican
operations, partially offset by higher realized gold prices.
Lower gold sales were primarily as a result of the expected
lower gold production in the period primarily due to reduced
throughput levels at Meadowbank as described above.
"On the back of another strong operational quarter, we have once
again increased our 2018 production guidance. We now expect
to produce approximately 1.60 million ounces, up from our previous
forecast of 1.58 million ounces that was announced last quarter.
Total cash costs and AISC are expected to be at or slightly below
the mid-point of our guidance range", said Sean Boyd, Agnico Eagle's Chief Executive
Officer. "Our Nunavut development projects are progressing
well. Drilling continues to generate positive exploration
results from the Amaruq underground deposits and we see potential
for a slightly earlier startup at Meliadine. As a result, we
now expect our 2019 gold production to exceed 1.70 million ounces,
which was the mid-point of the previous 2019 guidance", added Mr.
Boyd.
_______________
1 Adjusted net income is a non-GAAP measure.
For a discussion regarding the Company's use of non-GAAP measures,
please see "Note Regarding Certain Measures of
Performance".
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Third quarter 2018 highlights include:
- Strong quarterly production with stable cost performance
continues - Payable gold production2 in the third
quarter of 2018 was 421,718 ounces at production costs per ounce of
$657, total cash costs per
ounce3 of $637 and all-in
sustaining costs per ounce4 ("AISC") of $848
- Production guidance increased for 2018 and 2019 - Based
on strong operational performance, 2018 production guidance is now
forecast to be approximately 1.60 million ounces of gold, compared
to previous guidance of 1.58 million ounces of gold. Total cash
costs per ounce and AISC are expected to be at or slightly below
the mid-point of the 2018 guidance range ($625 to $675 per
ounce and $890 to $940 per ounce, respectively). Given the positive
development progress in Nunavut,
2019 production guidance is now forecast to exceed the mid-point of
the current guidance range (1.63 to 1.77 million ounces). The
Company will update its 2019 production guidance in February 2019
- Meliadine project on budget and slightly ahead of
schedule - At the end of September, construction at Meliadine
was 89% completed and underground development was proceeding as
planned with the first production stope in the drilling phase.
Commissioning of the process plant is expected to begin in the
first quarter of 2019, followed by the expected commencement of
commercial production in the second quarter of 2019
- Amaruq project continues to advance on schedule and on
budget for 2018 - Expansion of the haulage road and exterior
construction activities are scheduled to be completed in the fourth
quarter of 2018. The first ore is expected to be mined early in the
second quarter of 2019. Initial production from the Whale Tail
deposit is expected to begin in the third quarter of 2019
- Drilling at Amaruq continues to expand known mineralized
zones at depth, further highlighting the potential for underground
mining - Recent drilling intersected 19.6 grams per tonne
("g/t") gold over 5.6 metres at 656 metres depth, expanding the V
Zone westward at depth. A recent confirmation hole in the Whale
Tail North deposit returned 19.5 g/t gold over 7.0 metres at 477
metres depth, which could expand the mineral resources outline.
High-grade intercepts, such as 14.2 g/t gold over 5.1 metres at 698
metres depth, expands the deep potential of the Whale Tail deposit
to the west. Underground ramp development is continuing at Amaruq,
and the Company is evaluating potential underground mining
scenarios
- A quarterly dividend of $0.11
per share was declared
__________________________
2 Payable production of a mineral means the quantity of
a mineral produced during a period contained in products that have
been or will be sold by the Company whether such products are
shipped during the period or held as inventory at the end of the
period.
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3 Total
cash costs per ounce is a non-GAAP measure and, unless otherwise
specified, is reported on a by-product basis. For a
reconciliation to production costs and for total cash costs on a
co-product basis, see "Reconciliation of Non-GAAP Financial
Performance Measures" below. See also "Note Regarding Certain
Measures of Performance".
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4
All-in-sustaining costs per ounce is a non-GAAP measure and, unless
otherwise specified, is reported on a by-product basis. For a
reconciliation to production costs and for all-in sustaining costs
on a co-product basis, see "Reconciliation of Non-GAAP Financial
Performance Measures" below. See also "Note Regarding Certain
Measures of Performance".
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Third Quarter Financial and Production Highlights
In the third quarter of 2018, strong operational performance
continued at the Company's mines, which led to payable gold
production of 421,718 ounces, compared to 454,362 ounces in the
third quarter of 2017. In the first nine months of 2018,
payable gold production was 1,215,957 ounces, compared to 1,300,321
ounces in the prior-year period.
The lower level of production in the third quarter of 2018 and
the first nine months of 2018, when compared with the prior-year
periods, was primarily due to reduced throughput levels at
Meadowbank as the mine transitions through the last full year of
mining at site. A detailed description of the production of
each mine is set out below.
Production costs per ounce in the third quarter of 2018 were
$657, compared to $578 in the prior-year period. Total cash
costs per ounce in the third quarter of 2018 were $637, compared to $546 per ounce in the prior-year period.
Production costs per ounce in the first nine months of 2018 were
$720, compared to $596 in the prior-year period. Total cash
costs per ounce in the first nine months of 2018 were $647, compared with $547 in the prior-year period.
Production costs per ounce and total cash costs per ounce in the
third quarter of 2018 and the first nine months of 2018, when
compared to the prior-year periods, were negatively affected by
lower gold production levels at Meadowbank and higher costs at
several mines, partially offset by the weakening of local
currencies against the U.S. dollar. In addition, total cash
costs per ounce were negatively affected by lower by-product
revenues.
AISC in the third quarter of 2018 were $848 per ounce, compared to $789 in the prior-year period. The higher
AISC when compared to the prior-year period is primarily due to the
expected lower gold production and higher total cash costs per
ounce compared to the third quarter of 2017.
AISC in the first nine months of 2018 were $885 per ounce, compared to $772 in the prior-year period. The higher
AISC when compared to the prior-year period is primarily due to the
same reasons as described above. A detailed description of
the cost performance of each mine is set out below.
Cash Position Remains Strong
Cash and cash equivalents and short term investments decreased
to $533.4 million at September 30, 2018, from the June 30, 2018
balance of $721.2 million as a result
of the capital spending primarily at the Company's Nunavut projects.
The outstanding balance on the Company's credit facility
remained nil at September 30,
2018. This results in available credit lines of approximately
$1.2 billion, not including the
uncommitted $300 million accordion
feature.
Approximately 54% of the Company's remaining 2018 Canadian dollar exposure is hedged at an
average floor price of 1.28 C$/US$,
of which approximately one third are designated for capital
expenditures at Meliadine. Approximately 49% of the Company's
remaining 2018 Mexican peso exposure is hedged at an average floor
price of 19.00 MXN/US$. Approximately 14% of the Company's
remaining 2018 Euro exposure is
hedged at an average floor price of 1.20
US$/EUR. The Company's full year 2018 cost guidance
was based on assumed exchange rates of 1.25
C$/US$, 18.00 MXN/US$ and 1.20
US$/EUR. Agnico Eagle anticipates adding to its
operating currency hedges, subject to market conditions.
Diesel relating to the Nunavut
operations that is expected to be consumed through to July 2019 was purchased during the 2018 sealift
season. As a result, any outstanding diesel hedges were
settled in the third quarter of 2018. Agnico Eagle
anticipates opportunistically entering into hedging arrangements
with respect to its diesel exposure for future consumption periods,
subject to market conditions.
Capital Expenditures
Given the ongoing positive drill results from the deeper
portions of the Whale Tail and V-Zone deposits (see the Amaruq
section of this news release), and the potential to develop an
underground mining scenario at Amaruq, in the third quarter of 2018
the Company began capitalizing underground ramp expenditures at
Amaruq, which totalled $8.7 million
in the period. Capital costs for the ramp for the remainder
of the year are estimated to be $7.9
million. Capitalizing these costs is expected to
reduce expensed exploration expenditures by $16.6 million for the full year 2018.
Total capital expenditures (including sustaining capital) in
2018 remain forecast to be approximately $1.08 billion. The additional capital costs
for the Amaruq underground ramp are expected to be offset by
savings at other projects. The following table sets out
capital expenditures (including sustaining capital) in the third
quarter and first nine months of 2018.
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Capital
Expenditures
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(In thousands of
US dollars)
|
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|
|
|
|
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Three Months
Ended
|
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Nine Months
Ended
|
|
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September 30,
2018
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September 30,
2018
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Sustaining
Capital
|
|
|
|
|
|
LaRonde
mine
|
|
$
|
13,424
|
|
$
|
47,036
|
|
LaRonde Zone
5
|
|
|
1,602
|
|
|
2,141
|
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Canadian Malartic
mine
|
|
|
13,572
|
|
|
42,862
|
|
Meadowbank
mine
|
|
|
2,761
|
|
|
14,876
|
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Kittila
mine
|
|
|
14,479
|
|
|
37,947
|
|
Goldex
mine
|
|
|
4,754
|
|
|
15,169
|
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Pinos Altos
mine
|
|
|
4,552
|
|
|
22,877
|
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Creston Mascota
mine
|
|
|
921
|
|
|
2,647
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La India
mine
|
|
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2,498
|
|
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5,422
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Total Sustaining
Capital
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$
|
58,563
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$
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190,977
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|
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|
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Development
Capital
|
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|
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LaRonde
mine
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$
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5,208
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$
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7,143
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LaRonde Zone
5
|
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4,626
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|
|
19,627
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Canadian Malartic
mine
|
|
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7,619
|
|
|
18,900
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Amaruq satellite
deposit
|
|
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77,354
|
|
|
120,797
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Amaruq underground
ramp
|
|
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8,700
|
|
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8,700
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Kittila
mine
|
|
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34,067
|
|
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77,378
|
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Goldex
mine
|
|
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7,221
|
|
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23,762
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Pinos Altos
mine
|
|
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1,707
|
|
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1,991
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Creston Mascota
mine
|
|
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4,971
|
|
|
14,921
|
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La India
mine
|
|
|
898
|
|
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1,641
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Meliadine
project
|
|
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126,398
|
|
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296,852
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Other
|
|
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376
|
|
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1,976
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Total Development
Capital
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$
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279,145
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$
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593,688
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Total Capital
Expenditures
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$
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337,708
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$
|
784,665
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Revised Guidance for 2018 and 2019 – Production
Increased
Based on strong operational performance in the first nine months
of the year, 2018 production guidance is now forecast to be
approximately 1.60 million ounces of gold, compared to previous
guidance of 1.58 million ounces of gold. Key drivers for the
increase in 2018 production guidance includes the extension of
production at Lapa to December 2018,
higher grades at Meadowbank in the third quarter of 2018 and higher
throughput and grades at Canadian Malartic in the first nine months
of 2018.
Total cash costs per ounce and AISC are expected to be at or
slightly below the mid-point of the 2018 guidance range
($625 to $675 per ounce and $890 to $940 per
ounce, respectively). Given the positive development progress
in Nunavut, 2019 production
guidance is now forecast to exceed the mid-point of the current
guidance range (1.63 to 1.77 million ounces). The Company
will update its 2019 production guidance in February 2019.
2018 Tax Guidance
The Company anticipates the overall effective tax rate for 2018
to be at the previous guidance of approximately 45% for the full
year 2018.
As previously outlined in the Company's news release dated
February 14, 2018, the Company
expects its effective tax rates by jurisdiction for the full year
2018 to be:
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
Dividend Record and Payment Dates for the Fourth Quarter of
2018
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.11 per common share,
payable on December 14, 2018, to
shareholders of record as of November
30, 2018. Agnico Eagle has declared a cash dividend
every year since 1983.
Dividend Reinvestment Plan
Please see the following link for information on the Company's
dividend reinvestment plan: Dividend Reinvestment Plan
Third Quarter 2018 Results Conference Call and Webcast
Tomorrow
The Company's senior management will host a conference call on
Thursday, October 25, 2018 at
11:00 AM (E.D.T.) to discuss
the Company's financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
1-647-427-7450 or toll-free 1-888-231-8191. To ensure your
participation, please call approximately ten minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access
code 8096137. The conference call replay will expire on
November 25, 2018. The webcast,
along with presentation slides will be archived for 180 days on the
Company's website.
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde, Goldex, Lapa and LaRonde Zone 5 mines and
a 50% interest in the Canadian Malartic mine. These mines are
located within 50 kilometres of each other, which provides
operating synergies and allows for the sharing of technical
expertise.
LaRonde Mine – Implementing Technologies to Support Future
Automated Mining Activities
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988.
LaRonde Mine -
Operating Statistics
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Three Months
Ended
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Three Months
Ended
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September 30,
2018
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September 30,
2017
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Tonnes of ore milled
(thousands of tonnes)
|
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555
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582
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Tonnes of ore milled
per day
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6,033
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6,326
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Gold grade
(g/t)
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5.18
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5.87
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Gold production
(ounces)
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88,353
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105,345
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Production costs per
tonne (C$)
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$
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110
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$
|
93
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Minesite costs per
tonne (C$)
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$
|
120
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$
|
101
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Production costs per
ounce of gold produced ($ per ounce):
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$
|
527
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$
|
377
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Total cash costs per
ounce of gold produced ($ per ounce):
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$
|
514
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$
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328
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Production costs per tonne in the third quarter of 2018
increased when compared to the prior-year period due to slightly
higher labour costs (due to an increase in the Company's employees
versus contractors), higher underground costs, lower tonnage and
the timing of unsold concentrate inventory. Production costs
per ounce in the third quarter of 2018 increased when compared to
the prior-year period due to the reasons described above and lower
production.
Minesite costs per tonne5 in the third quarter of
2018 increased when compared to the prior-year period due to
slightly higher labour costs, higher underground costs and lower
tonnage. Total cash costs per ounce in the third quarter of
2018 increased when compared to the prior-year period due to the
reasons described above, lower production and lower by-product
metal revenues.
Gold production in the third quarter of 2018 decreased when
compared to the prior-year period due to lower tonnage and lower
grades resulting from the mining sequence.
LaRonde Mine -
Operating Statistics
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Nine Months
Ended
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Nine Months
Ended
|
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September 30,
2018
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September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
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1,593
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|
1,661
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Tonnes of ore milled
per day
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5,835
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6,084
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Gold grade
(g/t)
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5.37
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5.02
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Gold production
(ounces)
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262,664
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256,347
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Production costs per
tonne (C$)
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$
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140
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$
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105
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Minesite costs per
tonne (C$)
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$
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120
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$
|
107
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Production costs per
ounce of gold produced ($ per ounce):
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$
|
664
|
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$
|
510
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Total cash costs per
ounce of gold produced ($ per ounce):
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$
|
446
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$
|
413
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________________________
5 Minesite costs per tonne is a non-GAAP measure.
For a reconciliation of this measure to production costs as
reported in the financial statements, see "Reconciliation of
Non-GAAP Financial Performance Measures" below. See also
"Note Regarding Certain Measures of Performance" below.
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Production costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to slightly
higher labour costs, higher underground costs, lower tonnage and
the timing of unsold concentrate inventory. Production costs
per ounce in the first nine months of 2018 increased when compared
to the prior-year period due to the reasons described above,
partially offset by higher production.
Minesite costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to slightly
higher labour costs, higher underground costs and lower
tonnage. Total cash costs per ounce in the first nine months
of 2018 increased when compared to the prior-year period due to the
reasons described above, partially offset by higher production and
by-product metal revenues.
Gold production in the first nine months of 2018 increased when
compared to the prior-year period due to higher grades resulting
from the mining sequence in the western pyramid in the lower part
of the mine.
Drilling is ongoing at LaRonde 3 with a focus on mineral
resource conversion to mineral reserves. The Company
continues to evaluate a phased approach to development between
level 311 (a depth of 3.1 kilometres) and level 350 (a depth of 3.5
kilometres). The Company is also studying the best design
approaches to LaRonde 3 and the current western pyramid with
consideration of potential seismic risk in the deeper portion of
the mine.
Following the successful deployment of the LTE network at
LaRonde Zone 5, the Company is installing a similar network at the
LaRonde mine. Full coverage below level 269 is expected to be
in place by the end of 2018, and the technology will be evaluated
for use at LaRonde 3.
The Company is also evaluating the potential to develop Zone
11-3, which is at depth in the past producing Bousquet 2
mine. This zone currently hosts an indicated mineral resource
of approximately 126,000 ounces of gold (824,800 tonnes grading
4.76 g/t gold), and could provide additional production flexibility
for the LaRonde complex.
LaRonde Zone 5 – New Production Fleet Commissioned;
Operations Continue to Ramp Up
In 2003, the Company acquired the LaRonde Zone 5 project
("LZ5"). The property lies adjacent to and west of the
LaRonde complex and previous operators exploited the deposit by
open pit. In February 2017, LZ5
was approved by Agnico Eagle's Board of Directors for
development. Commercial production was achieved on
June 1, 2018.
In the third quarter of 2018, mining continued at LZ5 with ore
processed in July and ore stockpiled at surface in August and
September as the mill processed ore from Lapa.
LaRonde Zone 5
Mine - Operating Statistics
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Three Months
Ended
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September 30,
2018*
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Tonnes of ore milled
(thousands of tonnes)
|
|
54
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Tonnes of ore milled
per day
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1,742
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Gold grade
(g/t)
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2.49
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Gold production
(ounces)
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3,823
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Production costs per
tonne (C$)
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$
|
148
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Minesite costs per
tonne (C$)
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$
|
85
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Production costs per
ounce of gold produced ($ per ounce):
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$
|
1,607
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Total cash costs per
ounce of gold produced ($ per ounce):
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$
|
897
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* Milling
operations occurred for 31 days in the period
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Production costs per tonne in the third quarter of 2018 were
$148. Production costs per
ounce in the third quarter of 2018 were $1,607. Minesite costs per tonne in the
third quarter of 2018 were C$85. Total cash costs per ounce in the
third quarter of 2018 were $897. Gold production in the third quarter
of 2018 was 3,823 ounces of gold.
LaRonde Zone 5
Mine - Operating Statistics
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Nine Months
Ended
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September 30,
2018**
|
Tonnes of ore milled
(thousands of tonnes)
|
|
110
|
Tonnes of ore milled
per day
|
|
1,803
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Gold grade
(g/t)
|
|
2.63
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Gold production
(ounces)
|
|
8,424
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Production costs per
tonne (C$)
|
|
$
|
79
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Minesite costs per
tonne (C$)
|
|
$
|
85
|
Production costs per
ounce of gold produced ($ per ounce):
|
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$
|
791
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Total cash costs per
ounce of gold produced ($ per ounce):
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$
|
842
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** Milling
operations occurred for 61 days in the period
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Production costs per tonne in the nine months of 2018 were
$79. Production costs per ounce
in the nine months of 2018 were $791. Minesite costs per tonne in the nine
months of 2018 were C$85. Total
cash costs per ounce in the nine months of 2018 were $842. Gold production in the nine months of
2018 was 8,424 ounces of gold.
Mining will continue at LZ5 over the balance of 2018, but in
order to maximize production (tonnage and ounces), ore from LZ5
will be batch processed with ore from Lapa until the end of
2018. Currently stockpiled ore from LZ5 is expected to be
processed in October and November.
Productivity at LZ5 is slightly better than forecast.
Dilution and mining recovery are slightly better than anticipated
while mill recovery is higher than forecast.
The LZ5 full production fleet was commissioned in the third
quarter of 2018 (two trucks and one scoop tram). Pilot
testing of automated mining is expected to start in the fourth
quarter of 2018 for both trucks and the scoop tram.
Under the current LZ5 mine plan, a total of approximately
350,000 ounces of gold are expected to be mined through 2026.
The Company is evaluating the potential to extend operations at
depth and along strike onto the Ellison property, which adjoins LZ5
to the west. Ellison hosts an indicated mineral resource of
68,000 ounces (651,000 tonnes grading 3.25 g/t gold) as of
December 31, 2017.
Canadian Malartic Mine – Strong Operational Performance
Driven By Higher Grades
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation and
created the Canadian Malartic General Partnership (the
"Partnership"). The Partnership owns and operates the
Canadian Malartic mine in northwestern Quebec through a joint management
committee. Each of Agnico Eagle and Yamana has an indirect
50% ownership interest in the Partnership. All volume numbers
in this section reflect the Company's 50% interest in the Canadian
Malartic mine, except as noted.
Canadian Malartic
Mine - Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
5,114
|
|
5,056
|
Tonnes of ore milled
per day (100%)
|
|
55,587
|
|
54,957
|
Gold grade
(g/t)
|
|
1.22
|
|
1.14
|
Gold production
(ounces)
|
|
88,602
|
|
82,097
|
Production costs per
tonne (C$)
|
|
$
|
26
|
|
$
|
22
|
Minesite costs per
tonne (C$)
|
|
$
|
26
|
|
$
|
24
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
573
|
|
$
|
548
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
572
|
|
$
|
577
|
Production costs per tonne in the third quarter of 2018
increased when compared to the prior-year period due to higher
costs for contractors, fuel and tires, partially offset by higher
throughput levels. Production costs per ounce in the third
quarter of 2018 increased when compared to the prior-year period
due to the reasons described above, partially offset by higher
production.
Minesite costs per tonne in the third quarter of 2018 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the third quarter of
2018 decreased when compared to the prior-year period due higher
production, partially offset by higher contractor and fuel
costs.
Gold production in the third quarter of 2018 increased when
compared to the prior-year period due to higher throughput levels
and higher grades, partially offset by slightly lower gold
recoveries.
Canadian Malartic
Mine - Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
15,400
|
|
15,128
|
Tonnes of ore milled
per day (100%)
|
|
56,410
|
|
55,414
|
Gold grade
(g/t)
|
|
1.21
|
|
1.09
|
Gold production
(ounces)
|
|
263,868
|
|
235,988
|
Production costs per
tonne (C$)
|
|
$
|
25
|
|
$
|
22
|
Minesite costs per
tonne (C$)
|
|
$
|
25
|
|
$
|
23
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
563
|
|
$
|
552
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
558
|
|
$
|
558
|
Production costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to higher
costs for contractors, fuel and tires, partially offset by higher
throughput levels. Production costs per ounce in the first
nine months of 2018 increased when compared to the prior-year
period due the reasons described above, partially offset by higher
production.
Minesite costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to the reasons
described above. Total cash costs per ounce in the first nine
months of 2018 were the same when compared to the prior-year period
as the increase in costs described above were offset by higher
production.
Gold production in the first nine months of 2018 increased when
compared to the prior-year period due to higher throughput levels
and higher grades, partially offset by slightly lower gold
recoveries.
Work on the Barnat extension project is proceeding on budget and
on schedule. Work is primarily focused on the highway 117
road deviation, overburden stripping and tailings expansion.
Production activities at Barnat are scheduled to begin in
late 2019.
As part of ongoing stakeholder engagement, Canadian Malartic is
in discussions with four First Nations groups concerning a
potential memorandum of understanding, which is expected to also
include a financial component. As with the Good
Neighbour Guide and other community relations efforts at Canadian
Malartic, the Company is working collaboratively with stakeholders
to establish cooperative relationships that support the long-term
potential of the mine.
Lapa – Operations Expected to Extend to December of
2018
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in
May 2009.
Lapa Mine -
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018*
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
116
|
|
134
|
Tonnes of ore milled
per day
|
|
1,902
|
|
1,457
|
Gold grade
(g/t)
|
|
3.51
|
|
4.41
|
Gold production
(ounces)
|
|
10,464
|
|
17,169
|
Production costs per
tonne (C$)
|
|
$
|
67
|
|
$
|
113
|
Minesite costs per
tonne (C$)
|
|
$
|
123
|
|
$
|
113
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
578
|
|
$
|
703
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
1,061
|
|
$
|
706
|
* Milling
operations occurred for 61 days in the period
|
|
|
|
|
|
|
In the third quarter of 2018, the Lapa mill processed ore for 61
days as the mine approaches the end of operations, therefore, the
operating statistics in the above table are not meaningfully
comparable to the prior-year period.
Lapa Mine -
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018**
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
242
|
|
398
|
Tonnes of ore milled
per day
|
|
1,806
|
|
1,458
|
Gold
grade (g/t)
|
|
4.23
|
|
4.24
|
Gold production
(ounces)
|
|
26,719
|
|
48,410
|
Production costs per
tonne (C$)
|
|
$
|
92
|
|
$
|
121
|
Minesite costs per
tonne (C$)
|
|
$
|
130
|
|
$
|
120
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
649
|
|
$
|
758
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
916
|
|
$
|
755
|
** Milling
operations occurred for 134 days in the period
|
|
|
|
|
|
|
In the first nine months of 2018, the Lapa mill processed ore
for 134 days as the mine approaches the end of operations,
therefore, the operating statistics in the above table are not
meaningfully comparable to the prior-year period.
Mining operations at Lapa are forecast to continue to December
with ore stockpiled in October and November expected to be
processed in December. As a result, gold production from Lapa
for the full year 2018 is now forecast to exceed 30,000 ounces
(previous guidance was 25,000 ounces).
Goldex – Extent of South Zone Greater than Expected;
Potential for Increased Mining Throughput
The 100% owned Goldex mine in northwestern Quebec began production from the M and E
satellite zones in September 2013. Commercial production from
the Deep 1 Zone commenced on July 1,
2017.
Goldex Mine -
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
616
|
|
657
|
Tonnes of ore milled
per day
|
|
6,696
|
|
7,141
|
Gold grade
(g/t)
|
|
1.69
|
|
1.47
|
Gold production
(ounces)
|
|
31,255
|
|
28,906
|
Production costs per
tonne (C$)
|
|
$
|
41
|
|
$
|
34
|
Minesite costs per
tonne (C$)
|
|
$
|
41
|
|
$
|
34
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
617
|
|
$
|
611
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
611
|
|
$
|
598
|
Production costs per tonne in the third quarter of 2018
increased when compared to the prior-year period due to
higher maintenance costs and lower tonnage due to
mining transitioning out of the M&E zones and the
continuing ramp up of the Deep 1 sector. Production costs per
ounce in the third quarter of 2018 increased when compared to the
prior-year period due to the reasons described above, partially
offset by higher production.
Minesite costs per tonne in the third quarter of 2018 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the third quarter of
2018 increased when compared to the prior-year period due to the
reasons described above.
Gold production in the third quarter of 2018 increased when
compared to the prior-year period due to higher grades.
Throughput levels were lower in the third quarter of 2018 as a
result of a 14-day scheduled shutdown at Goldex to update the hoist
drive controls, which affected underground operations.
Concurrently, there was a seven-day scheduled shutdown to carry out
mill maintenance. Stockpiled ore was milled during one week
of the underground shutdown.
Goldex Mine -
Operating Statistics
|
|
|
|
|
All metrics
exclude pre-production tonnes and ounces
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,914
|
|
1,803
|
Tonnes of ore milled
per day
|
|
7,011
|
|
6,604
|
Gold grade
(g/t)
|
|
1.56
|
|
1.54
|
Gold production
(ounces)
|
|
89,659
|
|
83,873
|
Production costs per
tonne (C$)
|
|
$
|
40
|
|
$
|
36
|
Minesite costs per
tonne (C$)
|
|
$
|
40
|
|
$
|
36
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
656
|
|
$
|
587
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
654
|
|
$
|
576
|
Production costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to higher
costs relating to contractors, maintenance and consumables,
partially offset by higher throughput levels (after deducting
development ore tonnage from pre-commercial production at the Deep
1 Zone in the first nine months of 2017). Production costs
per ounce in the first nine months of 2018 increased when compared
to the prior-year period due to the reasons described above,
partially offset by higher production (after deducting
pre-commercial ounces in the first nine months of 2017).
Minesite costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to the reasons
described above. Total cash costs per ounce in the first nine
months of 2018 increased when compared to the prior-year period due
to the reasons described above.
Gold production in the first nine months of 2018 increased when
compared to the prior-year period (after deducting pre-commercial
ounces in the first nine months of 2017) due to higher throughput
levels. As stope development in the higher grade Deep 1 area
matures through 2018, utilization of the Rail-Veyor system is
expected to increase and lead to a reduction in unit costs.
Drilling and development is ongoing in the South Zone, which is
accessible from the Deep 1 Zone infrastructure. The South
Zone consists of quartz veins that have higher grades than those in
the primary mineralized zones at Goldex. The Company is
evaluating the potential for the South Zone to provide incremental
ore feed to the Goldex mill. Additional development continued
at level 106 as a result of better than expected grades, which
allows for the potential to increase mining throughput from the
South Zone. A test stope in the South Zone is expected to be
mined in the fourth quarter of 2018.
Akasaba West
The Company acquired the Akasaba West gold-copper deposit in
January 2014. Located less than 30 kilometres from Goldex,
the Akasaba West deposit could create flexibility and synergies for
the Company's operations in the Abitibi region by using extra
milling capacity at both Goldex and LaRonde, while reducing overall
unit costs.
The Company continues to review the timeline for the integration
of the Akasaba West project into the Goldex production
profile. Over a five-year mine life, total production is
expected to be approximately 115,000 ounces of gold and 21,000
tonnes of copper at total cash costs per ounce of $550 to $600.
Kirkland Lake Project Update – 2018 Drilling Program Focused
on Upper Beaver and Upper
Canada
The Kirkland Lake project in
northeastern Ontario covers
approximately 27,312 hectares, and mineral reserves and mineral
resources have been outlined on several properties. The
properties have been owned 100% by Agnico Eagle since March 28, 2018, when the Company completed the
acquisition of Yamana's indirect 50% interest in the Canadian
exploration assets of Canadian Malartic
Corporation that it did not previously own. Deposits
in the Kirkland Lake project
include: Upper Beaver, Upper
Canada, Anoki and McBean, and Amalgamated Kirkland.
An initial $5.6 million
exploration program is underway at Kirkland Lake and drilling commenced in
July. There are currently two rigs working on extending the
Upper Beaver deposit at depth, and one rig testing for satellite
targets around the Upper Canada
deposit. In the third quarter of 2018, 11,754 metres of
drilling (22 holes) was completed.
In addition, the Company is completing a technical review of
historical exploration data for the Upper Beaver and Upper Canada deposits, and updating the
geological models. Baseline studies continue at Upper Beaver
as well as detailed engineering work and consulting. The
Company is evaluating potential synergies between the Upper Beaver
and Upper Canada projects and its
other Abitibi operations.
NUNAVUT REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's Meadowbank mine, two significant development assets
(Meliadine and the Amaruq satellite deposit at Meadowbank) and
other exploration projects, Nunavut has the potential to be a strategic
operating platform with the ability to generate strong production
and cash flows over several decades.
Meadowbank – Strong Third Quarter Performance Driven By
Better than Expected Grade and Throughput
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in
March 2010. The mine produced its two millionth ounce of gold
in 2015.
Meadowbank Mine -
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
888
|
|
939
|
Tonnes of ore milled
per day
|
|
9,652
|
|
10,207
|
Gold grade
(g/t)
|
|
2.56
|
|
3.16
|
Gold production
(ounces)
|
|
68,259
|
|
86,821
|
Production costs per
tonne (C$)
|
|
$
|
73
|
|
$
|
82
|
Minesite costs per
tonne (C$)
|
|
$
|
73
|
|
$
|
82
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
716
|
|
$
|
697
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
694
|
|
$
|
661
|
Production costs per tonne in the third quarter of 2018
decreased when compared to the prior-year period primarily due to
lower open pit mining costs as a result of the reduced rate of open
pit mining activity as the mine transitions through the last full
year of mining at site, partially offset by higher re-handling
costs. Production costs per ounce in the third quarter of
2018 increased when compared to the prior-year period as expected
due to lower gold production.
Minesite costs per tonne in the third quarter of 2018 decreased
when compared to the prior-year period primarily due to lower open
pit mining costs as a result of the reduced rate of open pit mining
activity as the mine transitions through the last full year of
mining at site, partially offset by higher re-handling costs and
lower throughput levels. Total cash costs per ounce in the
third quarter of 2018 increased when compared to the prior-year
period as expected due to lower gold production.
Gold production in the third quarter of 2018 decreased when
compared to the prior-year period as expected due to anticipated
lower grades and processing ore that was harder than previously
anticipated from the Vault pit, which resulted in lower
throughput levels.
However, gold production in the third quarter of 2018 was better
than the second quarter of 2018 as a result of higher grades and
increased tonnage. During the quarter, mining activities were
carried out at both the Vault and Portage deposits and in addition,
ore was sourced from the marginal stockpile. For all three
sources of ore, grades were slightly better than expected.
Tonnage was better than expected due to the operation of the
secondary crusher and a higher ratio of Portage ore
(softer) to Vault ore processed.
Meadowbank Mine -
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
2,562
|
|
2,861
|
Tonnes of ore milled
per day
|
|
9,385
|
|
10,480
|
Gold grade
(g/t)
|
|
2.50
|
|
3.18
|
Gold production
(ounces)
|
|
189,333
|
|
267,480
|
Production costs per
tonne (C$)
|
|
$
|
84
|
|
$
|
77
|
Minesite costs per
tonne (C$)
|
|
$
|
82
|
|
$
|
76
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
881
|
|
$
|
631
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
839
|
|
$
|
602
|
Production costs per tonne in the first nine months of 2018
increased when compared to the prior-year period primarily due to
increased re-handling costs and lower throughput levels, partially
offset by lower open pit mining costs. Production costs per
ounce in the first nine months of 2018 increased when compared to
the prior-year period as expected due to the reasons described
above and lower gold production.
Minesite costs per tonne in the first nine months of 2018
increased when compared to the prior-year period primarily due to
increased re-handling costs and lower throughput levels,
partially offset by lower open pit mining costs. Total cash
costs per ounce in the first nine months of 2018 increased when
compared to the prior-year period as expected due to the reasons
described above and lower gold production.
Gold production in the first nine months of 2018 decreased when
compared to the prior-year period as expected due to anticipated
lower grades and processing ore that was harder than previously
anticipated from the Vault pit, which resulted in lower
throughput levels.
Amaruq Project – Project Continues to Advance on Schedule and
on Budget; Exploration Continues to Extend Whale Tail and V Zone
Mineralization at Depth
Agnico Eagle has a 100% interest in the Amaruq project,
approximately 50 kilometres northwest of the Meadowbank mine.
Amaruq is situated on a 99,878-hectare property, almost adjacent to
the 68,735-hectare Meadowbank property. Development of the
Amaruq project was approved in February
2017 by the Company's Board of Directors as a satellite
deposit to supply ore to the existing Meadowbank mill.
On July 11, 2018, the Minister of
Crown-Indigenous Relations and Northern Affairs Canada (formerly
Indigenous and Northern Affairs Canada) approved Agnico Eagle's
Type A Water Licence for the Whale Tail pit, which had been issued
by the Nunavut Water Board on May 30,
2018. This approval authorized the Company to commence
development activities on the Whale Tail pit.
In late July 2018, the Company
began construction activities related to the Whale Tail dike and
progressive overburden and waste stripping for Phase 1 of the Whale
Tail Pit. Other work carried out in the third quarter of 2018
included processing plant modifications, expansion of the haulage
road, construction of a permanent camp facility and a new mobile
maintenance shop. Expansion of the haulage road is scheduled
to be completed in November 2018 and
exterior construction activities are expected to be finished in
December 2018.
During the third quarter of 2018, 392 metres of ramp development
was carried out. Year-to-date ramp development is now 870
metres, with a target of 1,210 metres of development for the full
year. The first ventilation raise is also underway.
Given the ongoing positive drill results from the deeper
portions of the Whale Tail and V-Zone deposits, and the potential
to develop an underground mining scenario at Amaruq, in the third
quarter of 2018 the Company began capitalizing underground ramp
expenditures at Amaruq, which totalled $8.7
million in the period. Capital costs for the ramp for
the remainder of the year are estimated to be $7.9 million.
The first open pit ore is expected to be mined early in the
second quarter of 2019. Initial production from the Whale
Tail deposit is expected to begin in the third quarter of
2019. The Company is evaluating potential underground mining
scenarios at Amaruq and an update will be provided with the
Company's year-end results in February
2019.
The Whale Tail Expansion permitting process for open pit mining
activities at the V Zone and underground commenced on October 15, 2018, with a submission of a Project
Description to the Nunavut Planning Commission for screening.
The Company subsequently received a positive notice indicating that
the proposal conforms to the Land Use Plan. The Environmental
Assessment addendum related to Whale Tail Expansion will be
submitted to the Nunavut Impact Review Board in accordance with the
permitting process.
The Amaruq project remains on budget with capital expenditures
in 2018 forecast to be approximately $175
million (not including the underground ramp expenditures
discussed above).
Exploration Drilling Continues to Expand Known Mineralized Zones
at Amaruq
Exploration continues at depth in both the Whale Tail deposit
and V Zone, as well as conversion drilling of underground mineral
resources close to the planned Whale Tail pit bottom. In the
third quarter of 2018, the Company drilled 29,702 metres in 90
drill holes at the Amaruq project, part of the 67,000-metre
exploration drill program in 2018. The exploration program at
the Amaruq project was last reported in the Company's news release
dated July 16, 2018.
Selected recent intercepts from the Amaruq project are set out
in the table below. The drill hole collars are located on the
Amaruq project local geology map; the pierce points are shown on
the Amaruq project composite longitudinal section. All
intercepts reported for the Amaruq project show uncapped and capped
grades over estimated true widths, based on a preliminary
geological interpretation that is being updated as new information
becomes available with further drilling.
Recent exploration and conversion drill results from the
Whale Tail (WT) deposit and V Zone, Amaruq project
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
AMQ18-1829
|
WT
|
311.2
|
319.5
|
257
|
7.8
|
8.8
|
8.8
|
AMQ18-1830B
|
WT
|
749.0
|
753.0
|
684
|
3.6
|
9.8
|
9.8
|
and
|
WT
|
770.3
|
774.2
|
702
|
3.7
|
8.8
|
8.8
|
AMQ18-1830C
|
WT
|
759.7
|
765.1
|
698
|
5.1
|
16.0
|
14.2
|
AMQ18-1831
|
WT
|
717.5
|
727.8
|
555
|
5.9
|
4.2
|
4.2
|
AMQ18-1831A
|
WT
|
683.8
|
689.8
|
545
|
4.6
|
6.2
|
6.2
|
and
|
WT
|
729.5
|
734.5
|
580
|
4.7
|
6.8
|
6.8
|
AMQ18-1834
|
WT
|
775.8
|
786.0
|
653
|
5.9
|
9.1
|
9.1
|
AMQ18-1836
|
WT
|
498.8
|
510.0
|
394
|
5.6
|
5.2
|
5.2
|
AMQ18-1840
|
WT
|
458.1
|
470.6
|
327
|
4.3
|
10.7
|
10.7
|
and
|
WT
|
488.0
|
501.0
|
349
|
11.3
|
4.0
|
4.0
|
AMQ18-1841A
|
WT North
|
621.5
|
630.7
|
477
|
7.0
|
30.8
|
19.5
|
AMQ18-1845
|
V Zone
|
549.7
|
553.2
|
436
|
3.0
|
19.0
|
18.6
|
and
|
V Zone
|
570.5
|
574.3
|
451
|
2.9
|
18.4
|
8.0
|
AMQ18-1845A
|
V Zone
|
584.2
|
596.5
|
491
|
9.4
|
10.3
|
7.2
|
AMQ18-1847A
|
WT
|
397.0
|
408.9
|
315
|
5.0
|
8.2
|
8.2
|
and
|
WT
|
428.0
|
442.2
|
340
|
6.0
|
7.2
|
7.2
|
AMQ18-1848
|
WT
|
194.2
|
232.9
|
186
|
12.0
|
11.3
|
10.4
|
including
|
|
194.9
|
210.1
|
176
|
5.2
|
17.1
|
14.8
|
including
|
|
221.2
|
232.9
|
197
|
5.9
|
10.9
|
10.9
|
AMQ18-1849
|
WT
|
18.4
|
34.1
|
26
|
11.1
|
3.8
|
3.8
|
and
|
WT
|
240.2
|
246.0
|
237
|
2.9
|
7.4
|
7.4
|
and
|
WT
|
253.0
|
273.3
|
257
|
10.2
|
9.8
|
9.8
|
including
|
|
258.5
|
265.5
|
257
|
3.5
|
15.1
|
15.1
|
and
|
WT
|
330.6
|
339.0
|
327
|
8.1
|
5.2
|
5.2
|
AMQ18-1853
|
WT
|
68.5
|
77.1
|
72
|
7.0
|
4.5
|
4.5
|
and
|
WT
|
104.5
|
114.9
|
108
|
7.4
|
3.8
|
3.8
|
AMQ18-1856
|
V Zone
|
795.8
|
802.8
|
643
|
6.1
|
5.1
|
5.1
|
and
|
V Zone
|
812.0
|
818.2
|
656
|
5.6
|
19.6
|
19.6
|
*Holes at the
Whale Tail deposit use a capping factor of 80 g/t gold. Holes at V
Zone use a capping factor of 60 g/t gold.
|
[Amaruq Project Local Geology Map]
[Amaruq Project Composite Longitudinal Section]
Whale Tail Deposit Conversion and Deep Exploration
The Whale Tail deposit has been defined over at least 2.3
kilometres of strike length and extends from surface to 915 metres
depth.
The conversion drilling program in the third quarter targeted
areas beneath the central and western side of the Whale Tail pit,
aiming to convert mineral resources to mineral reserves. The
results continue to demonstrate the extension of high-grade
mineralization below the proposed pit outline. The intensive
drill program is providing additional information that will be used
to further refine the geological and structural models, confirming
that there are multiple high-grade intervals.
One area of particular interest is the western part of the Whale
Tail ore shoot. This area has been investigated by two new
holes, one drilled from the south and the other from the north,
that have led to an update of the structural interpretation.
Hole AMQ18-1849 had four mineralized intercepts, including a
significant result of 9.8 g/t gold over 10.2 metres at 257 metres
depth, where it ran down-dip along the main folded zone, followed
by an interval of 5.2 g/t gold over 8.1 metres at 327 metres
depth. The two intervals are interpreted as parts of the same
mineralized lens folded into an S-shape (looking west). This
is expected to lead to a mineral resource with a more continuous
outline and, locally, a steeper geometry, approximately 75 to 150
metres beneath the proposed Whale Tail pit. The results of
hole AMQ18-1829, with an intercept of 8.8 g/t gold over 7.8 metres
at 257 metres depth in the same area, correspond with the
interpretation of the folding of the zone.
Approximately 110 metres east of AMQ18-1849, hole AMQ18-1848
encountered significant gold grades, returning 10.4 g/t gold over
12.0 metres at 186 metres depth, some of which is outside the
proposed pit limit. These results support the interpretation
of a thicker folded shape within Whale Tail's main zone in this
area.
A series of conversion holes located approximately 50 to 125
metres below the indicated mineral resources centred beneath the
proposed Whale Tail pit also demonstrated good continuity of
mineralization. Hole AMQ18-1836 intersected stronger
mineralization than anticipated in the iron formation: 5.2 g/t gold
over 5.6 metres at 394 metres depth. Approximately 80 metres
to the east, hole AMQ18-1840 had two intercepts: 10.7 g/t gold over
4.3 metres at 327 metres depth and 4.0 g/t gold over 11.3 metres at
349 metres depth. Another 110 metres farther east, hole
AMQ18-1847A also had two intercepts: 8.2 g/t gold over 5.0 metres
at 315 metres depth and 7.2 g/t gold over 6.0 metres at 340 metres
depth.
The level of confidence in the Whale Tail geological model
continues to improve. Recent drill results could potentially
increase the mineral reserve and mineral resources estimate.
Deep exploration drilling continued on the Whale Tail deposit
during the third quarter of 2018 using directional drilling.
The main objective was to confirm and extend mineralization beneath
the western side of the planned pit at depths ranging from 550 to
700 metres. Results include hole AMQ18-1830C that highlights
the mineral potential toward the west at depth, intersecting 14.2
g/t gold over 5.1 metres at 698 metres depth, approximately 130
metres west of the current inferred mineral resources. Hole
AMQ18-1831 returned 4.2 g/t gold over 5.9 metres at 555 metres
depth, while hole AMQ18-1831A returned 6.8 g/t gold over 4.7 metres
at 580 metres depth. These intercepts are approximately 80
and 10 metres, respectively, west of the current inferred mineral
resources at this level. Near the eastern limit of the
inferred mineral resources, hole AMQ18-1834 returned 9.1 g/t gold
over 5.9 metres at 653 metres depth, confirming significant grade
and thickness in this area.
In the Whale Tail North deposit,drill hole AMQ18-1841A returned
19.5 g/t gold over 7.0 metres at 477 metres depth, which could
expand the mineral resources outline and improve the grade and
thickness locally, along the Whale Tail North structure. This
intercept is approximatively 100 metres north of and slightly above
the most strongly mineralized area of Whale Tail's main zone at
depth (described in the paragraph above).
The Whale Tail deposit remains open to the west at depth, and to
the east along a shallow plunge corresponding to the main ore
shoot. The drill program for the remainder of 2018 will
continue to test the Whale Tail deposit and the parallel structure
to its north at depth, to expand the mineral resources and continue
to convert inferred mineral resources to indicated mineral
resources.
V Zone - Drilling Outlines a Potential New Ore Shoot at
Depth
The V Zone consists of a series of parallel stacked mineralized
structures striking northeast from near surface to as deep as 656
metres below surface; the dip of the structures is approximately 30
degrees near surface and steepens to 60 to 70 degrees at depth,
where there are at least two parallel structures.
A mineralized corridor 100 to 150 metres wide plunging shallowly
to the northeast has recently been interpreted as another V Zone
ore shoot at depth. It extends from approximately 350 metres
to more than 650 metres depth. The V Zone ore shoot follows
the south limb of a fold in the contact between volcanic and
sedimentary rock units, which is a favourable location for
mineralization. The ore shoot was first described in the
Company's news release dated July 16,
2018.
In the third quarter of 2018, deep exploration drilling
continued to return positive results, particularly along the
interpreted V Zone ore shoot.
Two new holes are located within the current inferred mineral
resources area, providing important information on the geometry and
continuity of the mineralization, particularly within the
ultramafic host rock. They also improve drill spacing in an
area where previous drilling has demonstrated the presence of
high-grade mineralization associated with a series of stacked
parallel quartz veins that tend to steepen at depth. Hole
AMQ18-1845 intersected two intervals: 18.6 g/t gold over 3.0 metres
at 436 metres depth and 8.0 g/t gold over 2.9 metres at 451 metres
depth. In addition, hole AMQ18-1845A intersected a single
long interval of mineralized quartz vein returning 7.2 g/t gold
over 9.4 metres at 491 metres depth.
Hole AMQ18-1856, located between previous drill intercepts,
returned two distinct intervals both hosted in sedimentary rock:
5.1 g/t gold over 6.1 metres at 643 metres depth and 19.6 g/t gold
over 5.6 metres at 656 metres depth. This is the deepest
intercept released in the V Zone. Results of drilling to date
in this area have the potential to extend the mineral resources in
the lowest V Zone structure as much as 100 metres to the west and
downward.
The V Zone ore shoot remains open at depth and laterally
down-plunge along the favourable folded contact between volcanic
and sedimentary rocks. Additional drilling could result in
extension of the high-grade ore shoot to the east and west, as well
as better definition of the geometry of these structures by the end
of 2018.
Meliadine Project – Boat Sealift Completed, Construction
Activities are Slightly Ahead of Schedule and on Budget; Potential
to Accelerate Commencement of Production
Located near Rankin Inlet, Nunavut,
Canada, the Meliadine project was acquired in July 2010, and is Agnico Eagle's largest gold
deposit in terms of mineral resources. The Company owns 100%
of the 111,358-hectare property. In February 2017, the Company's Board of Directors
approved the construction of the Meliadine project.
Underground development and surface construction at Meliadine
continued through the third quarter of 2018 and the project remains
on budget and slightly ahead of schedule for the commencement of
commercial production in the second quarter of 2019. The estimated
capital budget for 2018 is unchanged at $398
million.
During the third quarter of 2018, the 2018 boat sealift was
largely completed, as was the Rankin
Inlet bypass road. Hauling of materials to site can
now proceed on a 24-hour basis.
Third Quarter 2018 Activities
Recent development/construction highlights include:
- At end of the third quarter of 2018, construction was 89%
complete
- The filter press and reagents area were completed in the
quarter and mechanical testing will be carried out in late
October
- The crusher and oxygen plant buildings are enclosed and
mechanical installation is underway. Construction of the ore bin
silo and thickener are in progress. Crusher installation is
expected to be completed by the end of January
- Erection of the paste plant structure is complete and all heavy
mechanical equipment is in place
- The paste dump station concrete is complete with civil
earthwork for the paste line 85% complete
- Commissioning of the power plant is planned for October
- Mechanical completion of the process plant is still expected in
December 2018, with commissioning
expected to begin in the first quarter of 2019
- The new hauling fleet added in August and additional bolters,
jumbos and emulsion loaders added in September helped to maximize
underground productivity. In the third quarter of 2018,
approximately 1,860 metres of underground development was completed
(6,121 metres completed year-to-date). The main development focus
was on the lower levels and Ramp 3
- All fresh air raises have been completed ahead of schedule
- In the third quarter of 2018, approximately 3,372 metres of
underground delineation drilling was completed (15,590 metres
completed year-to-date), which is in line with budget. All of the
stopes that will be mined in 2018 have been delineated, and stope
delineation for 2019 is progressing as expected
- Results from the delineation drilling have generally been in
line with the block model
- Production drilling for the first stope began on September 19, 2018, ahead of schedule by
approximately two weeks. Four stopes are expected to be completed
by year-end 2018
- In the second quarter of 2019, the process plant is expected to
start up using a 150,000 to 200,000-tonne stockpile of development
ore grading approximately 8.5 g/t gold
- Exploration drilling is ongoing to expand and convert mineral
resources into mineral reserves in numerous areas of the mine.
Additional details will be provided with the Company's year-end
results in February 2019
FINLAND AND SWEDEN
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. Exploration activities continue to
expand the mineral reserves and mineral resources and the Company
has approved an expansion to add an underground shaft and increase
expected mill throughput by 25 percent to 2.0 million tonnes per
annum ("mtpa"). In Sweden,
the Company has a 55 percent interest in the Barsele exploration
project.
Kittila – Record Quarterly Mill Throughput in the Third
Quarter of 2018
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine -
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
474
|
|
429
|
Tonnes of ore milled
per day
|
5,152
|
|
4,659
|
Gold grade
(g/t)
|
3.87
|
|
4.15
|
Gold production
(ounces)
|
49,459
|
|
50,415
|
Production costs per
tonne (EUR)
|
€
|
71
|
|
€
|
76
|
Minesite costs per
tonne (EUR)
|
€
|
72
|
|
€
|
77
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
791
|
|
$
|
750
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
813
|
|
$
|
753
|
Production costs per tonne in the third quarter of 2018
decreased when compared to the prior-year period primarily due to
higher throughput levels. Production costs per ounce in the
third quarter of 2018 increased when compared to the prior-year
period due to lower gold production.
Minesite costs per tonne in the third quarter of 2018 decreased
when compared to the prior-year period due to the reason described
above. Total cash costs per ounce in the third quarter of
2018 increased when compared to the prior-year period due to the
reason described above.
Despite record quarterly mill throughput, gold production in the
third quarter of 2018 decreased when compared to the prior-year
period due to lower grades and recoveries. The lower grade
resulted from a delay in accessing higher grade stopes due to a
re-prioritization of underground development. Mining
development is back on schedule; however, grades are expected to
remain slightly below guidance for the remainder of 2018 primarily
due to the mining sequence. The lower grades are expected to
be partially offset by higher throughput levels.
Recoveries were slightly below guidance in the third quarter of
2018 due to higher than expected thiocyanate concentrations in the
reclaim water pond, higher amounts of active carbon in the ore and
lower grade. Thiocyanate levels have declined during the
summer months and a new water treatment strategy is being developed
to address this issue.
Kittila Mine -
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,365
|
|
1,291
|
Tonnes of ore milled
per day
|
|
5,000
|
|
4,728
|
Gold grade
(g/t)
|
|
3.76
|
|
4.09
|
Gold production
(ounces)
|
|
139,626
|
|
149,192
|
Production costs per
tonne (EUR)
|
|
€
|
74
|
|
€
|
76
|
Minesite costs per
tonne (EUR)
|
|
€
|
75
|
|
€
|
76
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
864
|
|
$
|
738
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
876
|
|
$
|
739
|
Production costs per tonne in the first nine months of 2018
decreased when compared to the prior-year period due to higher
throughput levels. Production costs per ounce in the first
nine months of 2018 increased when compared to the prior-year
period due to lower gold production and the strengthening of the
Euro relative to the U.S. dollar between periods.
Minesite costs per tonne in the first nine months of 2018 were
essentially the same when compared to the prior-year period.
Total cash costs per ounce in the first nine months of 2018
increased when compared to the prior-year period due to lower gold
production and the strengthening of the Euro relative to the U.S.
dollar between periods.
Gold production in the first nine months of 2018 decreased when
compared to the prior-year period due to lower grades and
recoveries, as described above.
An eight to ten-day scheduled autoclave shutdown is scheduled
for late October.
In February 2018, the Company's
Board of Directors approved an expansion to increase throughput
rates at Kittila to 2.0 mtpa from the current rate of 1.6
mtpa. This expansion includes the construction of a
1,044-metre deep shaft, a processing plant expansion as well as
other infrastructure and service upgrades over a period from 2018
to 2021.
The expansion project is expected to increase the efficiency of
the mine and decrease or maintain current operating costs while
providing access to the deeper mining horizons. In addition,
the shaft is expected to provide access to the mineral resources
located below 1,150 metres depth, where recent exploration programs
have shown promising results.
The Kittila shaft/mill expansion is progressing on schedule and
on budget. Major contracts are in place, mobilization is
complete and permitting is underway. Shaft raise boring for
the first 325 metres was completed in August, and slashing is
expected to start at the end of October.
Phase 1 of the mill expansion remains on schedule and on
budget. Engineering was finalized in the third quarter of
2018, and civil and structural work has begun. The first mill
tie-ins are expected to be completed during a scheduled mill
shutdown in the spring of 2019. Structural work continues on
the Rimpi paste plant, and the underground paste line will be
started in the fourth quarter of 2018. The Rimpi paste plant
is expected to be completed in the first quarter of 2019.
Capital expenditures for the expansion project in 2018 remain on
budget at €21 million.
Drilling Continues to Infill and Expand the Roura Main Zone and
Sisar Top and Central Areas
In the third quarter of 2018, exploration drilling at Kittila
continued with 17 holes (5,896 metres) drilled in the Sisar Top,
Sisar Central, Roura and Rimpi Deep
zones. Sisar is subparallel to and slightly east of the main
Kittila mineralization.
Selected recent drill results are set out in the table below and
drill-hole collar coordinates are set out in the Appendix of this
news release. Pierce points are shown on the Kittila
Composite Longitudinal Section. 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 Sisar and Roura
zones at the Kittila mine
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade (g/t)
(uncapped)
|
ROD13-002C
|
Main -
Roura
|
453.6
|
462.0
|
1,053
|
3.1
|
4.3
|
and
|
Main -
Roura
|
504.0
|
513.0
|
1,091
|
3.6
|
4.5
|
ROD13-002D
|
Main -
Roura
|
486.0
|
499.0
|
1,070
|
6.9
|
5.5
|
ROD13-002E
|
Main -
Roura
|
514.0
|
528.0
|
1,106
|
5.2
|
6.9
|
ROD18-700
|
Sisar Top
|
549.0
|
555.0
|
1,094
|
3.8
|
4.3
|
ROU18-603
|
Main -
Roura
|
120.0
|
125.0
|
1,009
|
3.7
|
5.4
|
ROU18-604
|
Main -
Roura
|
149.0
|
154.0
|
1,042
|
3.1
|
5.5
|
and
|
Main -
Roura
|
173.0
|
190.0
|
1,061
|
10.5
|
3.7
|
ROU18-606
|
Sisar Top
|
145.0
|
151.0
|
886
|
5.7
|
4.5
|
ROU18-611
|
Sisar
Central
|
296.1
|
302.0
|
1,124
|
4.0
|
4.4
|
ROU18-616
|
Main -
Roura
|
118.0
|
123.0
|
1,009
|
3.5
|
5.1
|
and
|
Sisar Top
|
196.0
|
206.0
|
1,047
|
7.2
|
4.6
|
[Kittla Composite Longitudinal Section]
Drilling continues into the Roura area from the exploration
ramp. Recent intercepts have confirmed the Main Zone and the
Sisar Top Zone mineral reserves and mineral resources in the
northern part of the Roura area, between 885 and 1,125 metres
depth. Drilling targeted the Roura-Rimpi gap area in the Main
and Sisar zones.
In the Main Zone, hole ROU18-603 returned 5.4 g/t gold over 3.7
metres at 1,009 metres depth and hole ROU18-604 returned 5.5 g/t
gold over 3.1 metres at 1,042 metres depth; the same hole
intersected another lens approximately 20 metres to the east
grading 3.7 g/t gold over 10.5 metres at 1,061 metres depth.
These three intercepts confirm the Main Zone in the area.
Approximately 50 metres to the south, hole ROU18-616 intersected
the Main Zone grading 5.1 g/t gold over 3.5 metres at 1,009 metres
depth.
Three exploration holes drilled from the same platform on the
exploration ramp intersected the Sisar Zone over a 240-metre range
of depths. Hole ROU18-606 returned 4.5 g/t gold over 5.7
metres at 886 metres depth, while hole ROU18-611 returned 4.4 g/t
gold over 4.0 metres at 1,124 metres depth. Approximately 100
metres to the south, hole ROU18-616 returned 4.6 g/t gold over 7.2
metres at 1,047 metres depth. These three intercepts confirm
the Sisar Zone mineral reserves and mineral resources in this
area.
Drilling of the Roura area continues from the exploration ramp
with two high-capacity drill rigs. The goal of this drilling
is to convert mineral resources into mineral reserves in the Main
and Sisar zones between 1,100 to 1,400 metres depth.
Approximately 250 metres to the south of the drill holes
described above, hole ROD18-700 intersected 4.3 g/t gold over 3.8
metres at 1,094 metres depth at the Sisar Top Zone.
Another 250 metres southward, three holes have confirmed the
Main Zone in this area. Hole ROD13-002C intersected two
lenses of the Roura Main Zone: 4.3 g/t gold over 3.1 metres at
1,053 metres depth and 4.5 g/t gold over 3.6 metres at 1,091 metres
depth. Hole ROD13-002D intersected 5.5 g/t gold over 6.9
metres at 1,070 metres depth, while hole ROD17-002E intersected 6.9
g/t gold over 5.2 metres at 1,106 metres depth.
The 2018 exploration program is budgeted at $9.2 million including 36,000 metres of drilling,
focused on extending the Roura and Rimpi zones.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations have been a solid source of precious
metals production (gold and silver) with stable operating costs and
strong free cash flow since 2009.
Pinos Altos – Sinter
Underground Development Underway; Access to Mineralization Expected
in Q4 2018
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine -
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore
processed (thousands of tonnes)
|
|
508
|
|
587
|
Tonnes of ore
processed per day
|
|
5,522
|
|
6,380
|
Gold grade
(g/t)
|
|
2.96
|
|
2.65
|
Gold production
(ounces)
|
|
46,405
|
|
46,897
|
Production costs per
tonne
|
|
$
|
66
|
|
$
|
44
|
Minesite costs per
tonne
|
|
$
|
66
|
|
$
|
51
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
727
|
|
$
|
545
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
533
|
|
$
|
376
|
Production costs per tonne in the third quarter of 2018
increased when compared to the prior-year period due to lower
throughput levels, higher costs associated with underground mining
and the timing of unsold inventory. Production costs per
ounce in the third quarter of 2018 increased when compared to the
prior-year period due to the reasons described above.
Minesite costs per tonne in the third quarter of 2018 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the third quarter of
2018 increased when compared to the prior-year period due to the
reasons described above and lower by-product revenues.
Gold production in the third quarter of 2018 was essentially
unchanged when compared to the prior-year period.
Pinos Altos Mine -
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore
processed (thousands of tonnes)
|
|
1,630
|
|
1,760
|
Tonnes of ore
processed per day
|
|
5,971
|
|
6,447
|
Gold grade
(g/t)
|
|
2.66
|
|
2.67
|
Gold production
(ounces)
|
|
131,887
|
|
140,453
|
Production costs per
tonne
|
|
$
|
63
|
|
$
|
44
|
Minesite costs per
tonne
|
|
$
|
62
|
|
$
|
48
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
782
|
|
$
|
555
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
560
|
|
$
|
369
|
Production costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to lower
throughput levels, higher costs associated with underground mining
and the timing of unsold inventory. Production costs per
ounce in the first nine months of 2018 increased when compared to
the prior-year period due to the reasons described above and lower
gold production.
Minesite costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to the reasons
described above. Total cash costs per ounce in the first nine
months of 2018 increased when compared to the prior-year period due
to the reasons described above, lower gold production and lower
by-product revenue.
Gold production in the first nine months of 2018 decreased when
compared to the prior-year period due to lower throughput
levels.
In 2018, Pinos Altos is
transitioning into a predominantly underground mining operation,
with associated higher costs. The development of satellite
deposits provides an opportunity to lower unit costs by filling
available capacity at the processing and heap leaching
facility. Optimization opportunities are being studied to
reduce unit costs.
The Sinter and Cubiro satellite deposits at Pinos Altos continued to advance in the third
quarter of 2018. The Sinter deposit, located approximately
2.0 kilometres northwest of the Pinos
Altos mine, will be mined from underground and a small open
pit. At Sinter, underground development has begun; 400 metres
of lateral development and ancillary drifts have been
completed. Initial production from Sinter is expected to
commence in the fourth quarter of 2018.
At the Cubiro deposit, located approximately 9.2 kilometres
northwest of the Pinos Altos mine,
which could potentially supply high-grade ore to the Pinos Altos processing facilities, access road
construction was completed in the third quarter of 2018. Ramp
development preparation began in September and 460 metres of
underground development is planned to start in the fourth quarter
of 2018. Underground exploration and delineation drilling is
expected to commence in 2019.
At Pinos Altos, the Company is
currently installing an ore sorting pilot plant with the goal of
improving feed grades to the processing facilities. Testing
is expected to begin in late October and continue for approximately
six months. Over this period, samples will be processed from
all the ore bodies to determine the merits of implementing the
technology in Mexico; similar ore
sorting pilot testing is being considered in the Company's other
operating regions.
Exploration in the Third Quarter of 2018 Focused on Reyna de
Plata Deposit
The Reyna de Plata deposit is an opportunity for another
satellite source of ore on the Pinos
Altos property, approximately 1,200 metres north of the
Oberon de Weber pit. The Company is studying different mining
options to advance the deposit into the Pinos Altos production schedule. The
current exploration program is part of the activities to increase
the mineral resources at Reyna de Plata.
Exploration permits were received for the Reyna de Plata deposit
in the fourth quarter of 2017, and a drill program commenced in
mid-January 2018. In the third quarter of 2018, exploration
included 5,892 metres (48 holes) of step-out drilling to extend the
mineral resources beyond the current pit model. Total
drilling in the first nine months of 2018 was 15,144 metres.
Drilling results for Reyna de Plata were last reported in the
Company's news release dated July 25,
2018.
Selected recent drill results from the Reyna de Plata deposit
are set out in the table below and drill hole coordinates are set
out in a table in the Appendix of this news release. The
collars are also located on the Pinos Altos Local Geology
Map. All intercepts reported for the Reyna de Plata Zone show uncapped and capped
gold and silver grades over estimated true widths, based on a
preliminary geological interpretation that will be updated as new
information becomes available with further drilling.
Recent exploration drill results from the Reyna de Plata
Deposit at the Pinos Altos
mine
Drill
Hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)
|
Silver grade
(g/t)
(uncapped)
|
Silver
grade (g/t)
(capped)
|
RP18-101
|
49.0
|
61.0
|
65
|
10.9
|
1.1
|
1.1
|
25
|
25
|
RP18-114
|
88.1
|
103.8
|
73
|
12.9
|
1.2
|
1.2
|
17
|
17
|
RP18-118
|
203.0
|
217.6
|
193
|
7.3
|
3.6
|
3.3
|
56
|
56
|
RP18-126
|
66.0
|
79.2
|
42
|
12.6
|
1.6
|
1.6
|
25
|
25
|
and
|
103.5
|
113.6
|
83
|
9.7
|
3.2
|
3.0
|
34
|
34
|
RP18-137
|
30.0
|
38.4
|
44
|
7.6
|
2.0
|
2.0
|
31
|
31
|
RP18-139
|
86.8
|
106.8
|
106
|
17.4
|
2.3
|
1.8
|
30
|
30
|
RP18-141
|
151.2
|
157.2
|
118
|
3.9
|
1.2
|
1.2
|
26
|
26
|
and
|
185.1
|
214.0
|
151
|
23.7
|
0.9
|
0.9
|
37
|
37
|
and
|
230.5
|
237.0
|
184
|
5.0
|
2.5
|
2.2
|
23
|
23
|
RP18-145
|
0.0
|
24.0
|
20
|
19.7
|
1.0
|
1.0
|
10
|
10
|
RP18-159
|
27.5
|
43.5
|
40
|
13.9
|
2.9
|
2.9
|
75
|
75
|
including
|
33.0
|
36.6
|
40
|
3.1
|
6.4
|
6.4
|
105
|
105
|
Cut-off value 0.30
g/t gold, maximum 3.0 metres internal dilution
|
Holes at the Reyna
de Plata zone use a capping factor of 10 g/t gold and 200 g/t
silver
|
[Pinos Altos Local Geology Map]
The Reyna de Plata deposit lies along the Reyna de Plata Fault,
as does the Sinter Zone, approximately 1,740 metres to the
northwest. The Reyna de Plata deposit consists of
low-sulphidation epithermal vein-style mineralization over a
2.5-kilometre strike length in an east-west direction, from surface
to locally as deep as 250 metres. The gold and silver
mineralization is accompanied by green-clear-white quartz and
calcite in veins, stockwork and breccia.
Recent deeper drilling has yielded significant intercepts below
the current mineral resources, such as hole RP18-118 that intersected 3.3 g/t gold and 56 g/t
silver over 7.3 metres at 193 metres depth. Approximately 350
metres to the east, hole RP18-141
intersected 2.2 g/t gold and 23 g/t silver over 5.0 metres at 184
metres depth. These are the deepest intercepts from the Reyna
de Plata project to date.
Hole RP18-126 confirms previous
drilling in the west side of the deposit, intersecting 1.6 g/t gold
and 25 g/t silver over 12.6 metres at 42 metres depth and 3.0 g/t
gold and 34 g/t silver over 9.7 metres at 83 metres depth.
Approximately 370 metres to the west, hole RP18-139 intersected 1.8 g/t gold and 30 g/t
silver over 17.4 metres at 106 metres depth.
Approximately 1,300 metres east of the currently
anticipated pit margin, along the same geological contact that
hosts the Reyna de Plata deposit, hole RP18-159 intersected 2.9 g/t gold and 75 g/t
silver over 13.9 metres at 40 metres depth, including 6.4 g/t gold
and 105 g/t silver over 3.1 metres. The latter is the highest
grade intercept reported from the Reyna de Plata area to date.
The favourable lengths and grades of intercepts from this
program appear to extend the mineralization to the west and at
depth, while hole RP18-159 represents
a new eastern area of potential for more mineral resources in the
regional structure. These results are expected to increase
the mineral resources and allow for the conversion to indicated
mineral resources at Reyna de Plata in the year-end mineral
resources estimate.
Creston Mascota – Bravo Pit Now in Production; Expected to
Provide Access to Higher Grade
Ore
The Creston Mascota heap leach open pit mine has been operating
as a satellite operation to the Pinos
Altos mine since late 2010. In the first nine months
of 2018, the mine has been preparing to transition operations to
the new Bravo pit and expanding
the existing heap leach pad facility.
Creston Mascota
Mine - Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore
processed (thousands of tonnes)
|
|
309
|
|
518
|
Tonnes of ore
processed per day
|
|
3,359
|
|
5,630
|
Gold grade
(g/t)
|
|
0.84
|
|
1.54
|
Gold production
(ounces)
|
|
8,024
|
|
11,054
|
Production costs per
tonne
|
|
$
|
27
|
|
$
|
15
|
Minesite costs per
tonne
|
|
$
|
28
|
|
$
|
15
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
1,038
|
|
$
|
709
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
996
|
|
$
|
632
|
Production costs per tonne in the third quarter of 2018
increased when compared to the prior-year period due to lower
tonnes processed and the timing of unsold inventory, and have also
been affected by longer hauling distances. Production costs
per ounce in the third quarter of 2018 increased when compared to
the prior-year period due to the reasons described above and lower
gold production.
Minesite costs per tonne in the third quarter of 2018 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the third quarter of
2018 increased when compared to the prior-year period due to lower
gold production, lower by-product revenue and the reasons described
above.
Gold production in the third quarter of 2018 decreased when
compared to the prior-year period due to lower tonnes processed at
lower grades which was as a result of delays in accessing the main
Bravo pit. Mining at the
main Bravo pit began in
September. The Company expects to increase production levels
and gold grades by early in the fourth quarter of 2018.
Creston Mascota
Mine - Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore
processed (thousands of tonnes)
|
|
1,039
|
|
1,638
|
Tonnes of ore
processed per day
|
|
3,806
|
|
6,000
|
Gold grade
(g/t)
|
|
0.68
|
|
1.28
|
Gold production
(ounces)
|
|
28,728
|
|
34,372
|
Production costs per
tonne
|
|
$
|
27
|
|
$
|
14
|
Minesite costs per
tonne
|
|
$
|
27
|
|
$
|
14
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
982
|
|
$
|
645
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
882
|
|
$
|
568
|
Production costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to lower
tonnes processed and the timing of unsold inventory, and have also
been affected by longer hauling distances. Production costs
per ounce in the first nine months of 2018 increased when compared
to the prior-year period due to lower gold production and the
reasons described above.
Minesite costs per tonne in the first nine months of 2018
increased when compared to the prior-year period due to reasons
described above. Total cash costs per ounce in the first nine
months of 2018 increased when compared to the prior-year period due
to lower gold production and the reasons described above.
Gold production in the first nine months of 2018 decreased when
compared to the prior-year period due to lower tonnes processed at
lower grades which was as a result of delays in accessing the main
Bravo pit as described above.
A new waste rock storage site has been located closer to the
Bravo deposit, which is expected
to reduce waste haulage costs. Permits for this new waste
dump are expected to be received by the end of 2018.
Work relating to the Phase V heap leach pad expansion was paused
from mid-August to late September as a result of the rainy
season. The heap leach pad expansion is ongoing and
proceeding on budget with completion now expected in the fourth
quarter of 2018.
La India – Heap Leach
Optimization Initiatives Completed; Improved Gold Production in the
Third Quarter of 2018
The La India mine in Sonora,
Mexico, located approximately 70 kilometres northwest of the
Company's Pinos Altos mine,
achieved commercial production in February
2014.
La India Mine -
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore
processed (thousands of tonnes)
|
|
1,426
|
|
1,542
|
Tonnes of ore
processed per day
|
|
15,500
|
|
16,761
|
Gold grade
(g/t)
|
|
0.79
|
|
0.69
|
Gold production
(ounces)
|
|
27,074
|
|
25,143
|
Production costs per
tonne
|
|
$
|
13
|
|
$
|
10
|
Minesite costs per
tonne
|
|
$
|
13
|
|
$
|
11
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
668
|
|
$
|
637
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
685
|
|
$
|
657
|
Production costs per tonne in the third quarter of 2018
increased when compared to the prior-year period due to lower
tonnage and the timing of unsold inventory. Production costs
per ounce in the third quarter of 2018 increased when compared to
the prior-year period due to the timing of unsold inventory,
partially offset by higher gold production .
Minesite costs per tonne in the third quarter of 2018 increased
when compared to the prior-year period due to the reasons described
above. Total cash costs per ounce in the third quarter of
2018 increased when compared to the prior-year period primarily due
to lower by-product revenue and the timing of unsold inventory,
partially offset by higher gold production.
Gold production in the third quarter of 2018 increased when
compared to the prior-year period due to higher grades and plant
optimizations.
Optimization work on the La India adsorption, desorption and
recovery plant and commissioning of the carbon regeneration kiln
were completed in the third quarter of 2018. These
modifications to the plant contributed to the higher gold
production in the quarter.
La India Mine -
Operating Statistics
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
Tonnes of ore milled
(thousands of tonnes)
|
|
4,677
|
|
4,273
|
Tonnes of ore milled
per day
|
|
17,132
|
|
15,652
|
Gold grade
(g/t)
|
|
0.72
|
|
0.69
|
Gold production
(ounces)
|
|
75,049
|
|
75,650
|
Production costs per
tonne
|
|
$
|
11
|
|
$
|
10
|
Minesite costs per
tonne
|
|
$
|
11
|
|
$
|
10
|
Production costs per
ounce of gold produced ($ per ounce):
|
|
$
|
683
|
|
$
|
583
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
|
$
|
682
|
|
$
|
547
|
Production costs per tonne in the first nine months of 2018 were
essentially the same when compared to the prior-year period.
Production costs per ounce in the first nine months of 2018
increased when compared to the prior-year period primarily due to
increased heap leach costs resulting in a higher consumption of
reagents and general materials.
Minesite costs per tonne in the first nine months of 2018 were
essentially the same when compared to the prior-year period.
Total cash costs per ounce in the first nine months of 2018
increased when compared to the prior-year period primarily due to
increased heap leach costs resulting in a higher consumption of
reagents and general materials and lower by-product revenues.
Gold production in the first nine months of 2018 was essentially
unchanged when compared to the prior-year period.
Detailed engineering regarding the heap leach expansion is in
progress and is expected to be completed by late October, with
construction to begin in the fourth quarter of 2018. Completion of
the heap leach expansion is expected in the second quarter of
2019.
La India Exploration and Step-out Drilling Focused on
El Realito and Chipriona Zones
Mine-site exploration at the La India property in the third
quarter of 2018 included 7,400 metres (91 holes) at El Realito, 3,345 metres (36 holes) at Los
Tubos, 1,683 metres (18 holes) at El
Cochi and 1,571 metres (27 holes) at the Main Zone,
totalling 13,999 metres (172 holes); the total mine-site drilling
in the first nine months of 2018 was 25,819 metres, which forms a
portion of the budget of 26,000 metres for 2018. Drilling
results for the La India property were last reported in the
Company's news release dated July 25,
2018.
In addition, regional exploration at the La India property in
the third quarter of 2018 included drilling, mapping, surface
sampling and metallurgical testing at the Chipriona regional
target. In the third quarter of 2018, Chipriona drilling
totalled 7,599 metres (25 holes). To date, 8,650 metres has
been drilled in 2018 (17,232 metres altogether since 2017) with the
aim of better understanding the geometry of the mineralized veins
along the Chipriona corridor. Drilling results for the
Chipriona target were last reported in the Company's news release
dated April 26, 2018.
Nine kilometres northwest of the mine site is the Tarachi
deposit where a bulk mineable type of mineralization was previously
identified. Tarachi has indicated mineral resources of
294,000 ounces gold (22.7 million tonnes grading 0.40 g/t gold) and
inferred mineral resources of 68,000 ounces gold (6.5 million
tonnes grading 0.33 g/t gold) as of December
31, 2017. The mineral resources at Tarachi are
separate from the mineral resources estimate for La India. A
3,500-metre regional exploration diamond drill program began in
early October, aimed at expanding the mineralized zones and testing
new prospective areas within the deposit.
Selected recent drill results from the La India property are set
out in the table below, and drill-hole collar coordinates are set
out in a table in the Appendix of this news release. The
collars are located on the La India Mine Local Geology Map.
The intercepts reported for the La India property show uncapped and
capped gold and silver grades over estimated true widths, based on
a preliminary geological interpretation that will be updated as new
information becomes available with further drilling. The gold
and silver grades reported at the Chipriona Zone are uncapped.
Additional drilling is planned in the Chipriona and Tarachi
areas over the remainder of 2018.
Recent exploration drill results from the La India
property
Drill Hole
|
Vein
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)
|
Silver grade
(g/t)
(uncapped)
|
Silver
grade (g/t)
(capped)
|
CHP18-041
|
Chipriona
- Jessica
|
397.0
|
405.6
|
222
|
5.5
|
2.7
|
|
107
|
|
CHP18-042
|
Chipriona
|
71.3
|
82.1
|
73
|
9.8
|
0.5
|
|
72
|
|
CHP18-043
|
Chipriona
- in
Hanging
Wall
|
52.0
|
71.0
|
53
|
18.9
|
1.1
|
|
26
|
|
CHP18-046
|
Chipriona
|
99.0
|
108.5
|
92
|
7.8
|
0.9
|
|
570
|
|
CHP18-048
|
Chipriona
|
125.0
|
142.5
|
136
|
14.7
|
0.7
|
|
291
|
|
CHP18-053
|
Chipriona
- Jessica
|
74.1
|
84.0
|
90
|
8.1
|
1.6
|
|
214
|
|
CHP18-056
|
Chipriona
|
141.0
|
155.0
|
139
|
10.4
|
0.7
|
|
143
|
|
CHP18-061
|
Chipriona
- in
Hanging
Wall
|
23.0
|
40.0
|
20
|
15.4
|
1.3
|
|
8
|
|
and
|
Chipriona
|
290.0
|
309.0
|
130
|
16.5
|
1.5
|
|
50
|
|
CHP18-062
|
Chipriona
- Jessica
|
60.0
|
103.0
|
63
|
37.2
|
2.4
|
|
98
|
|
including
|
|
67.0
|
86.0
|
65
|
16.5
|
5.1
|
|
216
|
|
and
|
Chipriona
|
118.0
|
138.0
|
83
|
16.4
|
1.6
|
|
53
|
|
including
|
|
129.4
|
134.6
|
83
|
4.3
|
3.6
|
|
121
|
|
INER18-189
|
El Realito
|
66.0
|
75.0
|
7
|
5.4
|
0.6
|
0.6
|
2
|
2
|
INER18-203
|
El Realito
|
52.5
|
62.0
|
30
|
7.4
|
1.2
|
1.2
|
15
|
15
|
Holes at the La
India property, use a capping factor of 10 g/t gold and 200 g/t
silver. The gold and silver grades reported at the Chipriona
Zone are uncapped.
|
[La India Local Geology Map]
El Realito Exploration Results
Exploration drilling is defining and extending the
mineralization at the El Realito
satellite project, which is approximately 1.5 kilometres east of
the North and La India zones, to evaluate the potential to increase
mineral resources in close proximity to the existing La India
mining operations, with encouraging results. Drilling results
for El Realito were last reported
in the Company's news release dated July
25, 2018. The El
Realito mineralization is found in northeast-striking
subvertical parallel structural corridors of breccia that appear to
have acted as conduits, bringing gold and silver mineralization
into the favourable subhorizontal volcanic rock layers.
A step-out and exploration drill program at El Realito in the third quarter of 2018 was
focused on drilling targets outside the current pit design.
Hole INER18-203 intersected 1.2 g/t gold and 15 g/t silver over 7.4
metres at 30 metres depth in the northwest part of the zone,
outside of the current mineral resources area. The
El Realito mineralized system
remains open along strike (northeast and southwest) and shows
significant potential at depth; parallel mineralized structures
have not yet been tested. The drill program is currently
testing extension of the mineralized system in order to expand the
mineral resource.
Chipriona Zone
The Chipriona satellite target is located approximately one
kilometre north of the North Zone at the La India mine.
Agnico Eagle acquired its 100% interest in the Chipriona property
in December 2016. Mineralization at Chipriona consists of
what appears to be structurally controlled gold- and silver-rich
veins, stringers and breccias with significant zinc, lead and
copper content in sulphides. Preliminary metallurgical
testing is being conducted to determine the potential processing
and cut-off grades for this type of mineralization.
Surface mapping and sampling have traced stacked structures
within the Chipriona mineralized corridor, which has a width
ranging from tens of metres to a few hundred metres over a
northwest strike length of at least 2,000 metres; 1,800 metres of
this length has been confirmed through drill-testing.
Mineralization has been intersected from surface to a depth of
approximately 230 metres. Significant mineralization has been
intersected near surface over substantial widths; this suggests the
potential for bulk mining lower-grade mineralization in stockwork
zones that surround high-grade feeder zones.
Results from drilling in 2018 have demonstrated the continuity
of mineralization in the main veins identified in 2017, as well as
the consistency in thickness of the individual veins in the
corridor. Gold grades seem to increase compared to silver
grades as the deeper portions of the system are tested. Hole
CHP18-062 intersected 2.4 g/t gold and 98 g/t silver over 37.2
metres at 63 metres depth, including 5.1 g/t gold and 216 g/t
silver over 16.5 metres; a second intersection in the same drill
hole averaged 1.6 g/t gold and 53 g/t silver over 16.4 metres at 83
metres depth, including 3.6 g/t gold and 121 g/t silver over 4.3
metres.
Other recent results in the area include hole CHP18-061
that intersected 1.3 g/t gold and 8 g/t silver over 15.4
metres at 20 metres depth and 1.5 g/t gold and 50 g/t silver over
16.5 metres at 130 metres depth. Moving to the northwest,
hole CMP18-041 intersected 2.7 g/t gold and 107 g/t silver over 5.5
metres at 222 metres depth; hole CHP18-046 intersected 0.9 g/t
gold and 570 g/t silver over 7.8 metres at 92 metres depth; and
hole CHP18-056 intersected 0.7 g/t gold and 143 g/t silver over
10.4 metres at 139 metres depth.
Drilling in the Chipriona target during the fourth quarter of
2018 will focus on testing the vertical continuity of
mineralization identified during the first phase of the 2018
program, as all mineralized zones are still open at depth.
Santa Gertrudis – Drilling
of the North and South Deposits Confirms Historic Mineral Resources
with Potential for Expansion; and the Discovery of a Higher-Grade Zone
Agnico Eagle acquired its 100% interest in the Santa Gertrudis gold property in November
2017. The 42,000-hectare property is located approximately
180 kilometres north of Hermosillo
in Sonora, Mexico.
The property was the site of historic heap leach operations that
produced approximately 565,000 ounces of gold at a grade of 2.1 g/t
gold between 1991 and 2000, and includes substantial surface
infrastructure already in place including pre-stripped pits, haul
roads, water sources and buildings.
Three favourable geological trends with a potential strike
length of 18 kilometres have been identified on the property with
limited drilling between deposits. In addition, the previous
owner reported high-grade mineralization along northeast-trending
structures.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated July 25, 2018.
This news release presents the drill results at the project in the
third quarter of 2018 using portable and skid-mounted drill rigs,
with the purpose of confirming and extending the historic mineral
resources (estimated by previous owners) and exploring new
concepts.
In the third quarter of 2018, 13,120 metres were drilled in 89
holes mainly in the Becerros, Toro, Escondida, Viviana and
Trinidad zones. The third
quarter drilling almost completes 2018's program to validate and
confirm the most recent historical mineral resource
estimates. The 2018 exploration program at the project
consists of 28,000 metres at a budget of $7.2 million. Drilling is now focused on
mineral resource expansion and exploring new target areas.
Selected recent drill results from the Santa Gertrudis project are set out in the
table below, and drill hole coordinates are set out in a table in
the Appendix of this news release. Drill collars are also
shown on the Santa Gertrudis Project Local Geology Map. All
intercepts reported for the Santa
Gertrudis project show uncapped gold grades over an
estimated true width and depth of midpoint below surface (metres),
based on a preliminary geological interpretation that will be
updated as new information becomes available with further
drilling.
Selected recent exploration drill results from the
Santa Gertrudis project
Drill
Hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated true
width (metres)
|
Gold grade
(g/t)
(uncapped)
|
SGE18-067
|
Centauro
|
41.0
|
45.0
|
43
|
4.0
|
7.0
|
SGE18-068
|
Becerros
|
180.0
|
191.0
|
137
|
11.0
|
1.8
|
and
|
Becerros
|
197.0
|
200.0
|
151
|
3.0
|
2.2
|
SGE18-072
|
Toro
|
123.0
|
145.0
|
134
|
18.0
|
2.2
|
SGE18-076
|
Toro
|
96.0
|
100.0
|
98
|
4.0
|
1.1
|
and
|
Toro
|
140.9
|
152.7
|
145
|
11.8
|
3.3
|
SGE18-082
|
Toro
|
88.0
|
104.6
|
95
|
16.6
|
1.5
|
SGE18-087
|
Escondida
|
20.0
|
37.0
|
26
|
12.5
|
1.8
|
SGE18-089
|
Trinidad
|
103.0
|
110.0
|
30
|
7.0
|
2.8
|
and
|
Trinidad
|
123.0
|
133.0
|
38
|
10.0
|
10.5
|
including
|
|
125.6
|
129.0
|
37
|
3.4
|
19.5
|
SGE18-098
|
Viviana
|
80.0
|
99.0
|
89
|
8.9
|
4.8
|
SGE18-102
|
Viviana
|
49.0
|
52.0
|
51
|
3.0
|
3.0
|
and
|
Viviana
|
96.6
|
102.0
|
99
|
5.4
|
0.7
|
*No capping factor
was used for these composites. The cut-off grade for these
intervals is 0.3 g/t gold.
|
[Santa Gertrudis Project Local Geology Map]
Recent assay results from the Becerros, Toro, Escondida, Viviana
and Trinidad zones have confirmed
mineralization and the potential for extensions in these areas, as
well as the continuity of structurally-controlled feeders.
Exploration drilling in the third quarter of 2018 has discovered
the high-grade structurally controlled Centauro Zone, where hole
SGE18-067 intersected 7.0 g/t gold over 4.0 metres at 43 metres
depth. Centauro aligns well with, and may represent a
projection of, the Camello area (part of Becerros Zone) 300 metres
to the west. Centauro potentially also lies at the
intersection of the Corral and
Toro trends.
In the Becerros Zone, located approximately 1,000 metres
southwest of the Centauro Zone, hole SGE18-068 intersected two
intervals that are part of the same mineralized corridor: 1.8 g/t
gold over 11.0 metres at 137 metres depth and 2.2 g/t gold over 3.0
metres at 151 metres depth. The main mineralized corridor
that forms the Becerros deposit can now be traced over 1,500 metres
strike length.
Four recent infill drill holes intersected the Toro Zone along a
strike length of 1,660 metres, showing good correlation with
historic drill results. The recent Toro intercepts include
hole SGE18-072 that intersected 2.2 g/t gold over 18.0 metres at
134 metres depth. Sixteen hundred metres to the southwest,
hole SGE18-076 had two intercepts in Toro: 1.1 g/t gold over 4.0
metres at 98 metres depth and 3.3 g/t gold over 11.8 metres at 145
metres depth. The Toro Zone is located 1,400 metres northwest
of the Becerros Zone.
The Escondida Zone is in the northern portion of the project,
2,800 metres northeast of the Toro Zone. Recent drilling has
confirmed the grades and widths of mineralization within the
historic mineral resource area, such as hole SGE18-087 that twinned
a historic hole, intersecting 1.8 g/t gold over 12.5 metres at 26
metres depth.
Seventeen hundred metres northwest of Toro is the Viviana Zone,
where hole SGE18-098 intersected 4.8 g/t gold over 8.9 metres at 89
metres depth. Approximately 34 metres to its southeast, hole
SGE18-102 intersected two mineralized intervals: 3.0 g/t gold over
3.0 metres at 51 metres depth and 0.7 g/t gold over 5.4 metres at
99 metres depth. Both exploration holes were drilled near the
historic Viviana open pit.
At the Trinidad Zone, which is located 2,200 metres
north-northeast of the Viviana Zone, recent drill results correlate
well with historic drill holes in the area. Hole SGE18-089
intersected two mineralized intervals: 2.8 g/t gold over 7.0 metres
at 30 metres depth (beneath a former open pit mine) and 10.5 g/t
gold over 10.0 metres at 38 metres depth (including 19.5 g/t gold
over 3.4 metres). Additional follow-up drilling in this area
in 2018 will aim to expand the historic mineral resources.
An additional 5,800 metres of drilling is planned for the rest
of 2018. The Company expects to report its initial mineral
resource estimate for Santa
Gertrudis in mid-February
2019.
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 Canada, Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States and Sweden. The
Company and its shareholders have full exposure to gold prices due
to its long-standing policy of no forward gold sales. Agnico
Eagle has declared a cash dividend every year since 1983.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including "total
cash costs per ounce", "all-in sustaining costs per ounce",
"minesite costs per tonne" and "adjusted net income" that are not
standardized measures under IFRS. These data may not be
comparable to data reported by other issuers. For a
reconciliation of these measures to the most directly comparable
financial information reported in the consolidated financial
statements prepared in accordance with IFRS, other than adjusted
net income, see "Reconciliation of Non-GAAP Financial Performance
Measures" below.
The total cash costs per ounce of gold produced is reported on
both a by-product basis (deducting by-product metal revenues from
production costs) and co-product basis (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 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 this measure to monitor the
performance of the Company's mining operations. As market
prices for gold are quoted on a per ounce basis, using the total
cash costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash-generating capabilities
at various gold prices.
All-in sustaining costs per ounce of gold produced on a
by-product basis are calculated as the aggregate of total cash
costs on a by-product basis, sustaining capital expenditures
(including capitalized exploration), general and administrative
expenses (including stock options) and reclamation expenses, and
then dividing by the number of ounces 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 all-in sustaining
costs per ounce of gold produced on a by-product basis, except that
the total cash costs on a co-product basis are used, meaning no
adjustment is made for by-product metal revenues. All-in
sustaining costs per ounce is used to show the full cost of gold
production from current operations. Management is aware that
these per ounce measures of performance can be affected by
fluctuations in foreign exchange rates and, in the case of total
cash costs per ounce 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.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income for
unsold concentrate inventory production costs, and then dividing by
tonnes of ore processed. As the total cash costs per ounce of
gold produced can be affected by fluctuations in by‑product metal
prices and foreign exchange rates, management believes that
minesite costs per tonne 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.
Adjusted net income is calculated by adjusting the net income as
recorded in the consolidated statements of income for foreign
currency translation gains and losses, mark-to-market adjustments,
non-recurring gains and losses and unrealized gains and losses on
financial instruments. Management uses adjusted net income to
evaluate the underlying operating performance of the Company and to
assist with the planning and forecasting of future operating
results. Management believes that adjusted net income is a
useful measure of performance because foreign currency translation
gains and losses, mark-to-market adjustments, non-recurring gains
and losses and unrealized gains and losses on financial instruments
do not reflect the underlying operating performance of the Company
and may not be indicative of future operating results.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating foreign exchange rates and
metal prices. This news release also contains information as
to estimated future total cash costs per ounce, all-in sustaining
costs per ounce and minesite costs per tonne. The estimates
are based upon the total cash costs per ounce, all-in sustaining
costs per ounce and minesite costs per tonne that the Company
expects to incur to mine gold at its mines and projects and,
consistent with the reconciliation of these actual costs referred
to above, do not include production costs attributable to accretion
expense and other asset retirement costs, which will vary over time
as each project is developed and mined. It is therefore not
practicable to reconcile these forward-looking non-GAAP financial
measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
October 24, 2018. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include, without limitation: the
Company's forward-looking production guidance, including estimated
ore grades, project timelines, drilling results, metal production,
life of mine estimates, total cash costs per ounce, all-in
sustaining costs per ounce, minesite costs per tonne, other
expenses and cash flows; the estimated timing and conclusions of
technical reports and other studies and evaluations; the methods by
which ore will be extracted or processed; statements concerning the
Company's plans to build operations at Meliadine, Amaruq and
Akasaba West and the Company's expansion plans at Kittila,
including the timing, funding, completion and commissioning
thereof; statements concerning other expansion projects, recovery
rates, mill throughput, optimization and projected exploration
expenditures, including costs and other estimates upon which such
projections are based; statements regarding timing and amounts of
capital expenditures and other assumptions; estimates of future
mineral reserves, mineral resources, mineral production,
optimization efforts and sales; estimates of future capital
expenditures and other cash needs, and expectations as to the
funding thereof; statements as to the projected development of
certain ore deposits, including estimates of exploration,
development and production and other capital costs and estimates of
the timing of such exploration, development and production or
decisions with respect to such exploration, development and
production; estimates of mineral reserves and mineral resources;
statements regarding the Company's ability to obtain the necessary
permits and authorizations in connection with its exploration,
development and mining operations and the anticipated timing
thereof; statements regarding anticipated future exploration; the
anticipated timing of events with respect to the Company's mine
sites; statements regarding the sufficiency of the Company's cash
resources and other statements regarding anticipated trends with
respect to the Company's operations, exploration and the funding
thereof; and statements regarding the outcome of discussions with
First Nations groups. Such statements reflect the Company's
views as at the date of this news release and are subject to
certain risks, uncertainties and assumptions, and undue reliance
should not be placed on such statements. Forward-looking
statements are necessarily based upon a number of factors and
assumptions that, while considered reasonable by Agnico Eagle as of
the date of such statements, are inherently subject to significant
business, economic and competitive uncertainties and
contingencies. The material factors and assumptions used in
the preparation of the forward looking statements contained herein,
which may prove to be incorrect, include, but are not limited to,
the assumptions set forth herein and in management's discussion and
analysis ("MD&A") and the Company's Annual Information Form
("AIF") for the year ended December 31,
2017 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2017 ("Form 40-F") filed
with the U.S. Securities and Exchange Commission (the "SEC") as
well as: that there are no significant disruptions affecting
operations; that production, permitting, development and expansion
at each of Agnico Eagle's properties proceeds on a basis consistent
with current expectations and plans; that the relevant metal
prices, foreign exchange rates and prices for key mining and
construction supplies will be consistent with Agnico Eagle's
expectations; that Agnico Eagle's current estimates of mineral
reserves, mineral resources, mineral grades and metal recovery are
accurate; that there are no material delays in the timing for
completion of ongoing growth projects; that the Company's current
plans to optimize production are successful; and that there are no
material variations in the current tax and regulatory
environment. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks
include, but are not limited to: the volatility of prices of gold
and other metals; uncertainty of mineral reserves, mineral
resources, mineral grades and mineral recovery estimates;
uncertainty of future production, project development, capital
expenditures and other costs; foreign exchange rate fluctuations;
financing of additional capital requirements; cost of exploration
and development programs; mining risks; community protests,
including by First Nations groups; risks associated with foreign
operations; the unfavorable outcome of litigation involving the
Partnership; governmental and environmental regulation; the
volatility of the Company's stock price; and risks associated with
the Company's currency, fuel and by-product metal derivative
strategies. For a more detailed discussion of such risks and
other factors that may affect the Company's ability to achieve the
expectations set forth in the forward-looking statements contained
in this news release, see the AIF and MD&A filed on SEDAR at
www.sedar.com and included in the Form 40-F filed on EDGAR at
www.sec.gov, as well as the Company's other filings with the
Canadian securities regulators and the SEC. Other than as
required by law, the Company does not intend, and does not assume
any obligation, to update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
Cautionary Note to Investors Concerning Estimates of Measured
and Indicated Mineral Resources
This news release 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 SEC does not recognize them. Investors
are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into mineral
reserves.
Cautionary Note to Investors Concerning Estimates of Inferred
Mineral Resources
This news release also uses the term "inferred mineral
resources". Investors are advised that while this term is
recognized and required by Canadian regulations, the SEC does not
recognize it. "Inferred mineral resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that any part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
Scientific and Technical Data
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Christian Provencher, Eng.,
Vice-President, Canada; relating
to Nunavut operations has been
approved by Dominique Girard, Eng., Vice-President, Nunavut
Operations; relating to the Finland operations has been approved by
Francis Brunet, Eng., Corporate Director Mining; relating to
Southern Business operations has been approved by Marc Legault,
Eng., Senior Vice President, Operations - U.S.A. & Latin
America; and relating to exploration has been approved by
Alain Blackburn, Eng., Senior
Vice-President, Exploration and Guy Gosselin, Eng. and P.Geo.,
Vice-President, Exploration, each of whom is a "Qualified Person"
for the purposes of National Instrument 43-101 Standards of
Disclosure for Mineral Projects ("NI 43-101").
The scientific and technical information relating to Agnico
Eagle's mineral reserves and mineral resources contained herein
(other than the Canadian Malartic mine) has been approved by Daniel
Doucet, Eng., Senior Corporate Director, Reserve Development; and
relating to mineral reserves and mineral resources at the Canadian
Malartic mine contained herein has been approved by Donald Gervais, P.Geo., Director of Technical
Services at Canadian Malartic
Corporation, each of whom is a "Qualified Person" for the
purposes of NI 43-101.
Cautionary Note to U.S. Investors - The SEC permits U.S.
mining companies, in their filings with the SEC, to disclose only
those mineral deposits that a company can economically and legally
extract or produce. Agnico Eagle reports mineral reserve and
mineral resource estimates in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum Best Practice
Guidelines for Exploration and Best Practice Guidelines
forEstimation of Mineral Resources and Mineral Reserves,
in accordance with NI 43-101. These standards are similar to
those used by the SEC's Industry Guide No. 7, as interpreted by
Staff at the SEC ("Guide 7"). However, the definitions in NI
43-101 differ in certain respects from those under Guide 7.
Accordingly, mineral reserve information contained herein may not
be comparable to similar information disclosed by U.S.
companies. Under the requirements of the SEC, mineralization
may not be classified as a "reserve" unless the determination has
been made that the mineralization could be economically and legally
produced or extracted at the time the reserve determination is
made. A "final" or "bankable" feasibility study is required
to meet the requirements to designate mineral reserves under Guide
7. Agnico Eagle uses certain terms in this news release, such
as "measured", "indicated", "inferred" and "resources" that the SEC
guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC.
In prior periods, mineral reserves for all properties were
typically estimated using historic three-year average metals prices
and foreign exchange rates in accordance with the SEC
guidelines. These guidelines require the use of prices that
reflect current economic conditions at the time of mineral reserve
determination, which the Staff of the SEC has interpreted to mean
historic three-year average prices. Given the current
commodity price environment, Agnico Eagle has decided to use price
assumptions that are below the three-year averages.
Assumptions used for the December 31,
2017 mineral reserves estimate at all mines and advanced
projects reported by the Company
|
Metal
prices
|
Exchange
rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
peso per
US$1.00
|
US$ per
€1.00
|
Long-life
operations
and projects
|
$1,150
|
$16.00
|
$2.50
|
$1.00
|
C$1.20
|
MXP16.00
|
US$1.15
|
Short-life
operations
- Lapa,
Meadowbank mine,
Santos Nino pit and
Creston Mascota
satellite operation at
Pinos Altos
|
C$1.25
|
MXP17.00
|
Not
applicable
|
Upper Canada,
Upper Beaver*,
Canadian Malartic
mine**
|
$1,200
|
Not
applicable
|
2.75
|
Not
applicable
|
C$1.25
|
Not
applicable
|
Not
applicable
|
*The Upper Beaver
project has a C$125/tonne net smelter return (NSR)
|
**The Canadian
Malartic mine uses a cut-off grade between 0.35 g/t and 0.37 g/t
gold (depending on the deposit)
|
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors, together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the mineral projects that
is required by NI 43-101, sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d) can be found in Technical Reports, which may be
found at www.sedar.com. Other important operating information
can be found in the Company's AIF, MD&A and Form 40-F.
Property/Project
name and location
|
Date of most
recent Technical Report
(NI 43-101) filed onSEDAR
|
LaRonde, LaRonde Zone
5 & Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
June 16,
2014
|
Kittila, Kuotko and
Kylmakangas, Finland
|
March 4,
2010
|
Meadowbank Gold
Complex including the Amaruq Satellite Mine
Development, Nunavut, Canada
|
February 14,
2018
|
Goldex, Quebec,
Canada
|
October 14,
2012
|
Lapa, Quebec,
Canada
|
June 8,
2006
|
Meliadine, Nunavut,
Canada
|
February 11,
2015
|
Hammond Reef,
Ontario, Canada
|
July 2,
2013
|
Upper Beaver
(Kirkland Lake property), Ontario, Canada
|
November 5,
2012
|
Pinos Altos and
Creston Mascota, Mexico
|
March 25,
2009
|
La India,
Mexico
|
August 31,
2012
|
Appendix
Kittila mine exploration drill collar coordinates of selected
holes
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
ROD13-002C
|
7537699
|
2558624
|
-443
|
089
|
-74
|
864
|
ROD13-002D
|
7537699
|
2558624
|
-443
|
089
|
-74
|
799
|
ROD13-002E
|
7537699
|
2558624
|
-443
|
089
|
-74
|
846
|
ROD18-700
|
7537998
|
2558629
|
-485
|
089
|
-58
|
759
|
ROU18-603
|
7538289
|
2558729
|
-729
|
089
|
-30
|
300
|
ROU18-604
|
7538289
|
2558729
|
-730
|
089
|
-38
|
332
|
ROU18-606
|
7538290
|
2558730
|
-727
|
072
|
25
|
210
|
ROU18-611
|
7538289
|
2558729
|
-730
|
077
|
-37
|
341
|
ROU18-616
|
7538288
|
2558729
|
-729
|
105
|
-31
|
318
|
* Finnish
Coordinate System KKJ Zone 2
|
Reyna de Plata Deposit at Pinos
Altos mine exploration drill collar coordinates
|
Drill collar
coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
RP18-101
|
3131693
|
764920
|
1,959
|
199
|
-44
|
90
|
RP18-114
|
3131498
|
765325
|
1,979
|
202
|
-61
|
180
|
RP18-118
|
3131523
|
765284
|
1,979
|
200
|
-79
|
240
|
RP18-126
|
3131487
|
765344
|
1,983
|
200
|
-44
|
129
|
RP18-137
|
3131525
|
765097
|
2,017
|
199
|
-45
|
60
|
RP18-139
|
3131691
|
765033
|
1,949
|
200
|
-45
|
150
|
RP18-141
|
3131448
|
765625
|
2,021
|
201
|
-66
|
252
|
RP18-145
|
3131654
|
764900
|
1,983
|
201
|
-45
|
51
|
RP18-159
|
3130926
|
767274
|
2,146
|
201
|
-44
|
75
|
*
Coordinate System UTM Nad 27 Zone
N12
|
La India property
exploration drill hole collar coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
CHP18-041
|
3180478
|
707317
|
1,591
|
225
|
-45
|
441
|
CHP18-042
|
3180574
|
70,852
|
1,505
|
225
|
-45
|
278
|
CHP18-043
|
3180540
|
707262
|
1,598
|
225
|
-45
|
270
|
CHP18-046
|
3180644
|
706806
|
1,532
|
225
|
-45
|
252
|
CHP18-048
|
3180707
|
706774
|
1,542
|
225
|
-45
|
300
|
CHP18-053
|
3180142
|
707177
|
1,510
|
045
|
-45
|
231
|
CHP18-056
|
3180793
|
706675
|
1,582
|
228
|
-47
|
230
|
CHP18-061
|
3180296
|
707326
|
1,576
|
225
|
-45
|
342
|
CHP18-062
|
3180415
|
707100
|
1,567
|
225
|
-45
|
317
|
INER18-189
|
3177767
|
708941
|
1,969
|
315
|
-50
|
201
|
INER18-203
|
3178233
|
708726
|
1,957
|
315
|
-55
|
120
|
* Coordinate
System UTM NAD27 Mexico 12 Zone
|
Santa Gertrudis project
exploration drill hole collar coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
SGE18-067
|
3388863
|
544544
|
1,428
|
193
|
65
|
102
|
SGE18-068
|
,387607
|
544144
|
1,385
|
96
|
49
|
225
|
SGE18-072
|
3389093
|
543734
|
1,412
|
234
|
75
|
150
|
SGE18-076
|
3388560
|
542247
|
1,331
|
153
|
50
|
165
|
SGE18-082
|
3389035
|
542920
|
1,335
|
195
|
62
|
100
|
SGE18-087
|
3390381
|
545566
|
1,462
|
50
|
45
|
102
|
SGE18-089
|
3392405
|
542254
|
1,279
|
176
|
60
|
150
|
SGE18-098
|
3390284
|
541988
|
1,309
|
220
|
75
|
129
|
SGE18-102
|
3390,54
|
542018
|
1,304
|
220
|
78
|
120
|
*Coordinate System
UTM WGS84 12N Zone
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2018
|
|
2017(i)
|
|
2018
|
|
2017(i)
|
|
|
|
|
|
|
|
|
Operating
margin(ii) by mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
65,405
|
|
$
|
100,550
|
|
$
|
229,682
|
|
$
|
225,314
|
|
LaRonde Zone 5
mine
|
|
2,402
|
|
|
—
|
|
|
2,736
|
|
|
—
|
|
Lapa mine
|
|
1,467
|
|
|
9,825
|
|
|
8,059
|
|
|
24,219
|
|
Goldex
mine
|
|
17,837
|
|
|
18,274
|
|
|
54,575
|
|
|
55,118
|
|
Meadowbank
mine
|
|
32,816
|
|
|
55,324
|
|
|
84,010
|
|
|
175,465
|
|
Canadian Malartic
mine(iii)
|
|
58,478
|
|
|
56,702
|
|
|
188,419
|
|
|
159,525
|
|
Kittila
mine
|
|
19,115
|
|
|
25,662
|
|
|
57,736
|
|
|
77,244
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
29,072
|
|
29,445
|
|
95,911
|
|
112,616
|
|
Creston Mascota
mine
|
1,660
|
|
6,993
|
|
12,609
|
|
23,164
|
|
La India
mine
|
13,569
|
|
15,060
|
|
43,780
|
|
54,532
|
Total operating
margin(ii)
|
241,821
|
|
317,835
|
|
777,517
|
|
907,197
|
Amortization of
property, plant and mine development
|
143,859
|
|
118,312
|
|
416,698
|
|
379,261
|
Exploration,
corporate and other
|
79,502
|
|
92,776
|
|
232,598
|
|
254,862
|
Income before income
and mining taxes
|
18,460
|
|
106,747
|
|
128,221
|
|
273,074
|
Income and mining
taxes expense
|
1,407
|
|
34,278
|
|
61,266
|
|
69,779
|
Net income for the
period
|
$
|
17,053
|
|
$
|
72,469
|
|
$
|
66,955
|
|
$
|
203,295
|
Net income per
share — basic (US$)
|
$
|
0.07
|
|
$
|
0.31
|
|
$
|
0.29
|
|
$
|
0.89
|
Net income per
share — diluted (US$)
|
$
|
0.07
|
|
$
|
0.31
|
|
$
|
0.29
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
137,573
|
|
$
|
194,066
|
|
$
|
465,366
|
|
$
|
600,627
|
Cash used in
investing activities
|
$
|
(311,870)
|
|
$
|
(265,617)
|
|
$
|
(867,992)
|
|
$
|
(622,748)
|
Cash (used in)
provided by financing activities
|
$
|
(13,952)
|
|
$
|
(12,139)
|
|
$
|
292,198
|
|
$
|
339,268
|
|
|
|
|
|
|
|
|
Realized prices
(US$):
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,204
|
|
$
|
1,282
|
|
$
|
1,277
|
|
$
|
1,255
|
Silver
(per ounce)
|
$
|
14.20
|
|
$
|
16.92
|
|
$
|
15.82
|
|
$
|
17.20
|
Zinc
(per tonne)
|
$
|
2,615
|
|
$
|
2,780
|
|
$
|
3,167
|
|
$
|
2,736
|
Copper
(per tonne)
|
$
|
5,900
|
|
$
|
6,412
|
|
$
|
6,661
|
|
$
|
6,158
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Payable
production(iv):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
88,353
|
|
105,345
|
|
262,664
|
|
256,347
|
|
LaRonde Zone 5
mine
|
3,823
|
|
515
|
|
8,424
|
|
515
|
|
Lapa mine
|
10,464
|
|
17,169
|
|
26,719
|
|
48,410
|
|
Goldex
mine
|
31,255
|
|
28,906
|
|
89,659
|
|
91,914
|
|
Meadowbank
mine
|
68,259
|
|
86,821
|
|
189,333
|
|
267,480
|
|
Canadian Malartic
mine(iii)
|
88,602
|
|
82,097
|
|
263,868
|
|
235,988
|
|
Kittila
mine
|
49,459
|
|
50,415
|
|
139,626
|
|
149,192
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
46,405
|
|
46,897
|
|
131,887
|
|
140,453
|
|
Creston Mascota
mine
|
8,024
|
|
11,054
|
|
28,728
|
|
34,372
|
|
La India
mine
|
27,074
|
|
25,143
|
|
75,049
|
|
75,650
|
Total gold
(ounces)
|
421,718
|
|
454,362
|
|
1,215,957
|
|
1,300,321
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
234
|
|
285
|
|
835
|
|
894
|
|
LaRonde Zone 5
mine
|
1
|
|
—
|
|
1
|
|
—
|
|
Lapa mine
|
—
|
|
1
|
|
1
|
|
3
|
|
Goldex
mine
|
—
|
|
—
|
|
1
|
|
1
|
|
Meadowbank
mine
|
35
|
|
72
|
|
143
|
|
208
|
|
Canadian Malartic
mine(iii)
|
110
|
|
80
|
|
333
|
|
253
|
|
Kittila
mine
|
3
|
|
4
|
|
9
|
|
10
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
658
|
|
695
|
|
1,737
|
|
1,923
|
|
Creston Mascota
mine
|
59
|
|
71
|
|
227
|
|
197
|
|
La India
mine
|
44
|
|
60
|
|
126
|
|
262
|
Total silver
(thousands of ounces)
|
1,144
|
|
1,268
|
|
3,413
|
|
3,751
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
872
|
|
1,771
|
|
4,696
|
|
4,500
|
Copper
(tonnes)
|
1,026
|
|
1,056
|
|
3,279
|
|
3,235
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Payable metal
sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
86,292
|
|
103,483
|
|
282,985
|
|
261,645
|
|
LaRonde Zone 5
mine
|
7,155
|
|
—
|
|
7,838
|
|
—
|
|
Lapa mine
|
6,335
|
|
16,843
|
|
20,234
|
|
48,120
|
|
Goldex
mine
|
30,884
|
|
28,026
|
|
88,873
|
|
91,403
|
|
Meadowbank
mine
|
67,153
|
|
89,923
|
|
194,404
|
|
272,516
|
|
Canadian Malartic
mine(iii)(v)
|
84,303
|
|
74,040
|
|
246,268
|
|
215,280
|
|
Kittila
mine
|
48,340
|
|
49,513
|
|
139,878
|
|
149,623
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
44,714
|
|
35,704
|
|
134,727
|
|
128,676
|
|
Creston Mascota
mine
|
7,795
|
|
10,763
|
|
29,183
|
|
33,803
|
|
La India
mine
|
26,005
|
|
23,781
|
|
73,397
|
|
75,712
|
Total gold
(ounces)
|
408,976
|
|
432,076
|
|
1,217,787
|
|
1,276,778
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
225
|
|
296
|
|
836
|
|
903
|
|
LaRonde Zone 5
mine
|
1
|
|
—
|
|
1
|
|
|
|
Lapa mine
|
—
|
|
—
|
|
1
|
|
6
|
|
Goldex
mine
|
—
|
|
—
|
|
1
|
|
1
|
|
Meadowbank
mine
|
35
|
|
54
|
|
144
|
|
190
|
|
Canadian Malartic
mine(iii)(v)
|
110
|
|
85
|
|
304
|
|
239
|
|
Kittila
mine
|
3
|
|
4
|
|
9
|
|
9
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
659
|
|
550
|
|
1,798
|
|
1,742
|
|
Creston Mascota
mine
|
59
|
|
63
|
|
226
|
|
183
|
|
La India
mine
|
37
|
|
51
|
|
125
|
|
266
|
Total silver
(thousands of ounces):
|
1,129
|
|
1,103
|
|
3,445
|
|
3,539
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
1,118
|
|
1,314
|
|
6,627
|
|
5,095
|
Copper
(tonnes)
|
1,036
|
|
1,157
|
|
3,269
|
|
3,271
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — co-product basis
(US$)(vi):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
625
|
|
$
|
505
|
|
$
|
629
|
|
$
|
604
|
|
LaRonde Zone 5 mine
(vii)
|
899
|
|
—
|
|
843
|
|
—
|
|
Lapa mine
|
1,062
|
|
706
|
|
917
|
|
757
|
|
Goldex
mine(viii)
|
611
|
|
598
|
|
654
|
|
576
|
|
Meadowbank
mine
|
702
|
|
671
|
|
852
|
|
614
|
|
Canadian Malartic
mine(iii)
|
591
|
|
592
|
|
578
|
|
575
|
|
Kittila
mine
|
814
|
|
755
|
|
878
|
|
740
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
726
|
|
630
|
|
764
|
|
606
|
|
Creston Mascota
mine
|
1,093
|
|
717
|
|
1,007
|
|
660
|
|
La India
mine
|
707
|
|
698
|
|
708
|
|
608
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
690
|
|
$
|
623
|
|
$
|
719
|
|
$
|
622
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — by-product basis
(US$)(vi):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
514
|
|
$
|
328
|
|
$
|
446
|
|
$
|
413
|
|
LaRonde Zone 5 mine
(vii)
|
897
|
|
—
|
|
842
|
|
—
|
|
Lapa mine
|
1,061
|
|
706
|
|
916
|
|
755
|
|
Goldex
mine(viii)
|
611
|
|
598
|
|
654
|
|
576
|
|
Meadowbank
mine
|
694
|
|
661
|
|
839
|
|
602
|
|
Canadian Malartic
mine(iii)
|
572
|
|
577
|
|
558
|
|
558
|
|
Kittila
mine
|
813
|
|
753
|
|
876
|
|
739
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
533
|
|
376
|
|
560
|
|
369
|
|
Creston Mascota
mine
|
996
|
|
632
|
|
882
|
|
568
|
|
La India
mine
|
685
|
|
657
|
|
682
|
|
547
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
637
|
|
$
|
546
|
|
$
|
647
|
|
$
|
547
|
Notes:
|
|
|
|
|
|
|
|
|
(i) The Company has
adopted IFRS 9 effective January 1, 2018 on a retrospective basis
and the comparative amounts have been adjusted
accordingly.
|
|
(ii) Operating margin
is calculated as revenues from mining operations less production
costs.
|
|
(iii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
|
(iv) Payable
production (a non-GAAP non-financial performance measure) is
the quantity of mineral produced during a period contained in
products that have been 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 the 5.0% net smelter
royalty in favour of Osisko Gold Royalties Ltd.
|
|
(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 reported 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 (without deducting
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 for by-product metal revenues, inventory
production costs, smelting, refining and marketing charges, 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. 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 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 analysis in order to quantify the effects
of fluctuating metal prices and exchange rates.
|
|
(vii) The LaRonde
Zone 5 mine's per ounce of gold production calculations exclude 515
ounces for the three and nine months ended September 30, 2017 of
payable gold production and the associated costs which were
produced prior to the achievement of commercial production on June
1, 2018.
|
|
(viii) The Goldex
mine's data presented on a per ounce of gold produced basis
for the nine months ended September 30, 2017 excludes 8,041 ounces
of payable gold production and the associated costs related to the
Deep 1 Zone which were produced prior to the achievement of
commercial production.
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
(thousands of
United States dollars, except share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
As at September
30,
2018
|
|
|
As at December
31,
2017
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
520,255
|
|
|
$
|
632,978
|
|
Short-term
investments
|
13,183
|
|
|
10,919
|
|
Restricted
cash
|
411
|
|
|
422
|
|
Trade
receivables
|
8,626
|
|
|
12,000
|
|
Inventories
|
491,900
|
|
|
500,976
|
|
Income taxes
recoverable
|
36,349
|
|
|
13,598
|
|
Equity
securities
|
76,163
|
|
|
122,775
|
|
Fair value of
derivative financial instruments
|
4,263
|
|
|
17,240
|
|
Other current
assets
|
206,527
|
|
|
150,626
|
|
Total current
assets
|
1,357,677
|
|
|
1,461,534
|
|
Non-current
assets:
|
|
|
|
Restricted
cash
|
—
|
|
|
801
|
|
Goodwill
|
696,809
|
|
|
696,809
|
|
Property, plant and
mine development
|
6,173,019
|
|
|
5,626,552
|
|
Other
assets
|
128,334
|
|
|
79,905
|
|
Total
assets
|
$
|
8,355,839
|
|
|
$
|
7,865,601
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
407,179
|
|
|
$
|
290,722
|
|
Reclamation
provision
|
4,611
|
|
|
10,038
|
|
Interest
payable
|
34,295
|
|
|
12,894
|
|
Income taxes
payable
|
11,856
|
|
|
16,755
|
|
Finance lease
obligations
|
2,740
|
|
|
3,412
|
|
Fair value of
derivative financial instruments
|
623
|
|
|
—
|
|
Total current
liabilities
|
461,304
|
|
|
333,821
|
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,721,549
|
|
|
1,371,851
|
|
Reclamation
provision
|
359,089
|
|
|
345,268
|
|
Deferred income and
mining tax liabilities
|
818,420
|
|
|
827,341
|
|
Other
liabilities
|
46,622
|
|
|
40,329
|
|
Total
liabilities
|
3,406,984
|
|
|
2,918,610
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding —
234,550,171 common shares issued, less 697,328 shares held in
trust
|
5,343,703
|
|
|
5,288,432
|
|
Stock
options
|
195,093
|
|
|
186,754
|
|
Contributed
surplus
|
37,254
|
|
|
37,254
|
|
Deficit
|
(569,795)
|
|
|
(595,797)
|
|
Other
reserves
|
(57,400)
|
|
|
30,348
|
|
Total
equity
|
4,948,855
|
|
|
4,946,991
|
|
Total liabilities and
equity
|
$
|
8,355,839
|
|
|
$
|
7,865,601
|
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
|
September
30,
|
|
|
2018
|
|
|
2017(I)
|
|
|
2018
|
|
|
2017(I)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
518,683
|
|
|
$
|
580,008
|
|
|
$
|
1,653,400
|
|
|
$
|
1,677,350
|
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES
AND OTHER INCOME
|
|
|
|
|
|
|
|
Production(ii)
|
276,862
|
|
|
262,173
|
|
|
875,883
|
|
|
770,153
|
|
Exploration and
corporate development
|
40,939
|
|
|
50,106
|
|
|
110,098
|
|
|
109,742
|
|
Amortization of
property, plant and mine development
|
143,859
|
|
|
118,312
|
|
|
416,698
|
|
|
379,261
|
|
General and
administrative
|
29,404
|
|
|
27,986
|
|
|
93,512
|
|
|
86,494
|
|
Impairment loss on
equity securities
|
—
|
|
|
1,432
|
|
|
—
|
|
|
7,246
|
|
Finance
costs
|
23,914
|
|
|
20,298
|
|
|
71,023
|
|
|
57,839
|
|
Gain on derivative
financial instruments
|
(8,143)
|
|
|
(8,830)
|
|
|
(5,009)
|
|
|
(15,207)
|
|
Environmental
remediation
|
20
|
|
|
188
|
|
|
253
|
|
|
326
|
|
Foreign currency
translation (gain) loss
|
(1,056)
|
|
|
4,322
|
|
|
(666)
|
|
|
7,821
|
|
Other (income)
expenses
|
(5,576)
|
|
|
(2,726)
|
|
|
(36,613)
|
|
|
601
|
|
Income before income
and mining taxes
|
18,460
|
|
|
106,747
|
|
|
128,221
|
|
|
273,074
|
|
Income and mining
taxes expense
|
1,407
|
|
|
34,278
|
|
|
61,266
|
|
|
69,779
|
|
Net income for the
period
|
$
|
17,053
|
|
|
$
|
72,469
|
|
|
$
|
66,955
|
|
|
$
|
203,295
|
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
$
|
0.07
|
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
$
|
0.89
|
|
Net income per share
- diluted
|
$
|
0.07
|
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
$
|
0.88
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
233,584
|
|
|
231,404
|
|
|
232,969
|
|
|
229,696
|
|
Diluted
|
235,317
|
|
|
233,792
|
|
|
234,681
|
|
|
232,016
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i)In
accordance with the adoption of IFRS 9 on January 1, 2018, the
Company has restated comparative information where
required.
|
(ii)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,
|
|
|
2018
|
|
|
2017(I)
|
|
|
2018
|
|
|
2017(I)
|
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
17,053
|
|
|
$
|
72,469
|
|
|
$
|
66,955
|
|
|
$
|
203,295
|
|
Add (deduct) items
not affecting cash:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
143,859
|
|
|
118,312
|
|
|
416,698
|
|
|
379,261
|
|
Deferred income and
mining taxes
|
(15,138)
|
|
|
3,476
|
|
|
(8,872)
|
|
|
(5,734)
|
|
Stock-based
compensation
|
11,331
|
|
|
9,337
|
|
|
38,788
|
|
|
34,257
|
|
Impairment loss on
equity securities
|
—
|
|
|
1,432
|
|
|
—
|
|
|
7,246
|
|
Foreign currency
translation (gain) loss
|
(1,056)
|
|
|
4,322
|
|
|
(666)
|
|
|
7,821
|
|
Other
|
208
|
|
|
(1,016)
|
|
|
(15,293)
|
|
|
6,458
|
|
Adjustment for
settlement of reclamation provision
|
(1,221)
|
|
|
(444)
|
|
|
(2,515)
|
|
|
(2,739)
|
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
4,853
|
|
|
651
|
|
|
3,374
|
|
|
441
|
|
Income
taxes
|
(10,309)
|
|
|
3,598
|
|
|
(27,650)
|
|
|
(15,012)
|
|
Inventories
|
(76,216)
|
|
|
(63,850)
|
|
|
(38,898)
|
|
|
(72,639)
|
|
Other current
assets
|
(4,480)
|
|
|
(24,428)
|
|
|
(57,320)
|
|
|
(39,885)
|
|
Accounts payable and
accrued liabilities
|
53,433
|
|
|
57,353
|
|
|
73,252
|
|
|
88,727
|
|
Interest
payable
|
15,256
|
|
|
12,854
|
|
|
17,513
|
|
|
9,130
|
|
Cash provided by
operating activities
|
137,573
|
|
|
194,066
|
|
|
465,366
|
|
|
600,627
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(310,602)
|
|
|
(256,965)
|
|
|
(746,917)
|
|
|
(577,876)
|
|
Acquisition
|
—
|
|
|
—
|
|
|
(162,479)
|
|
|
—
|
|
Net proceeds from
sale of property, plant and mine development
|
—
|
|
|
—
|
|
|
35,083
|
|
|
—
|
|
Net purchases of
short-term investments
|
(247)
|
|
|
(1,763)
|
|
|
(2,264)
|
|
|
(1,758)
|
|
Net proceeds from
sale of equity securities and other investments
|
121
|
|
|
136
|
|
|
16,426
|
|
|
333
|
|
Purchases of equity
securities and other investments
|
(1,139)
|
|
|
(7,000)
|
|
|
(8,653)
|
|
|
(43,425)
|
|
(Increase) decrease
in restricted cash
|
(3)
|
|
|
(25)
|
|
|
812
|
|
|
(22)
|
|
Cash used in
investing activities
|
(311,870)
|
|
|
(265,617)
|
|
|
(867,992)
|
|
|
(622,748)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Dividends
paid
|
(21,073)
|
|
|
(17,563)
|
|
|
(63,140)
|
|
|
(55,790)
|
|
Repayment of finance
lease obligations
|
(817)
|
|
|
(1,190)
|
|
|
(2,562)
|
|
|
(4,338)
|
|
Proceeds from
long-term debt
|
—
|
|
|
—
|
|
|
250,000
|
|
|
280,000
|
|
Repayment of
long-term debt
|
—
|
|
|
—
|
|
|
(250,000)
|
|
|
(410,412)
|
|
Notes
issuance
|
—
|
|
|
—
|
|
|
350,000
|
|
|
300,000
|
|
Long-term debt
financing
|
—
|
|
|
(156)
|
|
|
(2,285)
|
|
|
(2,285)
|
|
Repurchase of common
shares for stock-based compensation plans
|
(171)
|
|
|
(119)
|
|
|
(26,503)
|
|
|
(24,659)
|
|
Proceeds on exercise
of stock options
|
4,531
|
|
|
3,865
|
|
|
26,214
|
|
|
34,747
|
|
Common shares
issued
|
3,578
|
|
|
3,024
|
|
|
10,474
|
|
|
222,005
|
|
Cash (used in)
provided by financing activities
|
(13,952)
|
|
|
(12,139)
|
|
|
292,198
|
|
|
339,268
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
234
|
|
|
(4,780)
|
|
|
(2,295)
|
|
|
(1,655)
|
|
Net (decrease)
increase in cash and cash equivalents during the
period
|
(188,015)
|
|
|
(88,470)
|
|
|
(112,723)
|
|
|
315,492
|
|
Cash and cash
equivalents, beginning of period
|
708,270
|
|
|
943,936
|
|
|
632,978
|
|
|
539,974
|
|
Cash and cash
equivalents, end of period
|
$
|
520,255
|
|
|
$
|
855,466
|
|
|
$
|
520,255
|
|
|
$
|
855,466
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
6,661
|
|
|
$
|
6,771
|
|
|
$
|
48,336
|
|
|
$
|
45,071
|
|
Income and mining
taxes paid
|
$
|
25,031
|
|
|
$
|
27,438
|
|
|
$
|
96,953
|
|
|
$
|
96,593
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i)In
accordance with the adoption of IFRS 9 on January 1, 2018, the
Company has restated comparative information where
required.
|
AGNICO EAGLE MINES
LIMITED
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
(thousands of
United States dollars, except where noted)
(Unaudited)
|
|
Total Production
Costs by Mine
|
|
Three Months
Ended
September 30,
2018
|
|
|
Three Months
Ended
September 30, 2017
|
|
|
Nine Months
Ended
September 30, 2018
|
|
|
Nine Months
Ended
September 30, 2017
|
(thousands of
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
|
$
|
46,519
|
|
|
$
|
39,726
|
|
|
$
|
174,363
|
|
|
$
|
130,732
|
LaRonde Zone 5
mine
|
|
6,144
|
|
|
—
|
|
|
6,665
|
|
|
—
|
Lapa mine
|
|
6,044
|
|
|
12,064
|
|
|
17,329
|
|
|
36,713
|
Goldex
mine
|
|
19,299
|
|
|
17,659
|
|
|
58,826
|
|
|
49,230
|
Meadowbank
mine
|
|
48,844
|
|
|
60,484
|
|
|
166,817
|
|
|
168,859
|
Canadian Malartic
mine(i)
|
|
50,736
|
|
|
45,020
|
|
|
148,613
|
|
|
130,273
|
Kittila
mine
|
|
39,142
|
|
|
37,787
|
|
|
120,617
|
|
|
110,126
|
Pinos Altos
mine
|
|
33,714
|
|
|
25,582
|
|
|
103,156
|
|
|
77,974
|
Creston Mascota
mine
|
|
8,327
|
|
|
7,836
|
|
|
28,204
|
|
|
22,175
|
La India
mine
|
|
18,093
|
|
|
16,015
|
|
|
51,293
|
|
|
44,071
|
Production costs per
the consolidated statement of income
|
|
$
|
276,862
|
|
|
$
|
262,173
|
|
|
$
|
875,883
|
|
|
$
|
770,153
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold Produced
(ii) by Mine and Reconciliation of Production Costs to
Minesite Costs per Tonne(iii) by
Mine
|
(thousands of
United States dollars, except as noted)
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
88,353
|
|
|
|
|
105,345
|
|
|
|
|
262,664
|
|
|
|
|
256,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
46,519
|
|
|
$
|
527
|
|
|
$
|
39,726
|
|
|
$
|
377
|
|
|
$
|
174,363
|
|
|
$
|
664
|
|
|
$
|
130,732
|
|
|
$
|
510
|
|
Inventory and other
adjustments(iv)
|
|
8,724
|
|
|
98
|
|
|
13,462
|
|
|
128
|
|
|
(9,143)
|
|
|
(35)
|
|
|
24,141
|
|
|
94
|
|
Cash operating costs
(co-product basis)
|
|
$
|
55,243
|
|
|
$
|
625
|
|
|
$
|
53,188
|
|
|
$
|
505
|
|
|
$
|
165,220
|
|
|
$
|
629
|
|
|
$
|
154,873
|
|
|
$
|
604
|
|
By-product metal
revenues
|
|
(9,871)
|
|
|
(111)
|
|
|
(18,636)
|
|
|
(177)
|
|
|
(48,083)
|
|
|
(183)
|
|
|
(48,948)
|
|
|
(191)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
45,372
|
|
|
$
|
514
|
|
|
$
|
34,552
|
|
|
$
|
328
|
|
|
$
|
117,137
|
|
|
$
|
446
|
|
|
$
|
105,925
|
|
|
$
|
413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
555
|
|
|
|
|
582
|
|
|
|
|
1,593
|
|
|
|
|
1,661
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
46,519
|
|
|
$
|
84
|
|
|
$
|
39,726
|
|
|
$
|
68
|
|
|
$
|
174,363
|
|
|
$
|
109
|
|
|
$
|
130,732
|
|
|
$
|
79
|
|
Production costs
(C$)
|
|
C$
|
60,780
|
|
|
C$
|
110
|
|
|
C$
|
54,305
|
|
|
C$
|
93
|
|
|
C$
|
222,803
|
|
|
C$
|
140
|
|
|
C$
|
175,103
|
|
|
C$
|
105
|
|
Inventory and other
adjustments (C$)(v)
|
|
5,958
|
|
|
10
|
|
|
4,405
|
|
|
8
|
|
|
(31,362)
|
|
|
(20)
|
|
|
2,846
|
|
|
2
|
|
Minesite operating
costs (C$)
|
|
C$
|
66,738
|
|
|
C$
|
120
|
|
|
C$
|
58,710
|
|
|
C$
|
101
|
|
|
C$
|
191,441
|
|
|
C$
|
120
|
|
|
C$
|
177,949
|
|
|
C$
|
107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii) (vi)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
3,823
|
|
|
|
|
—
|
|
|
|
|
8,424
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
6,144
|
|
|
$
|
1,607
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,665
|
|
|
$
|
791
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Inventory and other
adjustments(iv)
|
|
(2,709)
|
|
|
(708)
|
|
|
—
|
|
|
—
|
|
|
432
|
|
|
52
|
|
|
—
|
|
|
—
|
|
Cash operating costs
(co-product basis)
|
|
$
|
3,435
|
|
|
$
|
899
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,097
|
|
|
$
|
843
|
|
|
$
|
—
|
|
|
$
|
—
|
|
By-product metal
revenues
|
|
(7)
|
|
|
(2)
|
|
|
—
|
|
|
—
|
|
|
(7)
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
Cash operating costs
(by-product basis)
|
|
$
|
3,428
|
|
|
$
|
897
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,090
|
|
|
$
|
842
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii) (vii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
54
|
|
|
|
|
—
|
|
|
|
|
110
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
6,144
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,665
|
|
|
$
|
61
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Production costs
(C$)
|
|
C$
|
8,001
|
|
|
C$
|
148
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
8,682
|
|
|
C$
|
79
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
Inventory and other
adjustments (C$)(v)
|
|
(3,427)
|
|
|
(63)
|
|
|
—
|
|
|
—
|
|
|
675
|
|
|
6
|
|
|
—
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
4,574
|
|
|
C$
|
85
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
9,357
|
|
|
C$
|
85
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
10,464
|
|
|
|
|
17,169
|
|
|
|
|
26,719
|
|
|
|
|
48,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
6,044
|
|
|
$
|
578
|
|
|
$
|
12,064
|
|
|
$
|
703
|
|
|
$
|
17,329
|
|
|
$
|
649
|
|
|
$
|
36,713
|
|
|
$
|
758
|
|
Inventory and other
adjustments(iv)
|
|
5,066
|
|
|
484
|
|
|
57
|
|
|
3
|
|
|
7,160
|
|
|
268
|
|
|
(83)
|
|
|
(1)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
11,110
|
|
|
$
|
1,062
|
|
|
$
|
12,121
|
|
|
$
|
706
|
|
|
$
|
24,489
|
|
|
$
|
917
|
|
|
$
|
36,630
|
|
|
$
|
757
|
|
By-product metal
revenues
|
|
(4)
|
|
|
(1)
|
|
|
(5)
|
|
|
—
|
|
|
(13)
|
|
|
(1)
|
|
|
(99)
|
|
|
(2)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
11,106
|
|
|
$
|
1,061
|
|
|
$
|
12,116
|
|
|
$
|
706
|
|
|
$
|
24,476
|
|
|
$
|
916
|
|
|
$
|
36,531
|
|
|
$
|
755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
116
|
|
|
|
|
134
|
|
|
|
|
242
|
|
|
|
|
398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
6,044
|
|
|
$
|
52
|
|
|
$
|
12,064
|
|
|
$
|
90
|
|
|
$
|
17,329
|
|
|
$
|
72
|
|
|
$
|
36,713
|
|
|
$
|
92
|
|
Production costs
(C$)
|
|
C$
|
7,771
|
|
|
C$
|
67
|
|
|
C$
|
15,288
|
|
|
C$
|
113
|
|
|
C$
|
22,166
|
|
|
C$
|
92
|
|
|
C$
|
48,337
|
|
|
C$
|
121
|
|
Inventory and other
adjustments (C$)(v)
|
|
6,535
|
|
|
56
|
|
|
(51)
|
|
|
—
|
|
|
9,196
|
|
|
38
|
|
|
(527)
|
|
|
(1)
|
|
Minesite operating
costs (C$)
|
|
C$
|
14,306
|
|
|
C$
|
123
|
|
|
C$
|
15,237
|
|
|
C$
|
113
|
|
|
C$
|
31,362
|
|
|
C$
|
130
|
|
|
C$
|
47,810
|
|
|
C$
|
120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)(viii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
31,255
|
|
|
|
|
28,906
|
|
|
|
|
89,659
|
|
|
|
|
83,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
19,299
|
|
|
$
|
617
|
|
|
$
|
17,659
|
|
|
$
|
611
|
|
|
$
|
58,826
|
|
|
$
|
656
|
|
|
$
|
49,230
|
|
|
$
|
587
|
|
Inventory and other
adjustments(iv)
|
|
(187)
|
|
|
(6)
|
|
|
(381)
|
|
|
(13)
|
|
|
(163)
|
|
|
(2)
|
|
|
(940)
|
|
|
(11)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
19,112
|
|
|
$
|
611
|
|
|
$
|
17,278
|
|
|
$
|
598
|
|
|
$
|
58,663
|
|
|
$
|
654
|
|
|
$
|
48,290
|
|
|
$
|
576
|
|
By-product metal
revenues
|
|
(5)
|
|
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(19)
|
|
|
—
|
|
|
(21)
|
|
|
—
|
|
Cash operating costs
(by-product basis)
|
|
$
|
19,107
|
|
|
$
|
611
|
|
|
$
|
17,272
|
|
|
$
|
598
|
|
|
$
|
58,644
|
|
|
$
|
654
|
|
|
$
|
48,269
|
|
|
$
|
576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)(ix)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
616
|
|
|
|
|
657
|
|
|
|
|
1,914
|
|
|
|
|
1,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
19,299
|
|
|
$
|
31
|
|
|
$
|
17,659
|
|
|
$
|
27
|
|
|
$
|
58,826
|
|
|
$
|
31
|
|
|
$
|
49,230
|
|
|
$
|
27
|
|
Production costs
(C$)
|
|
C$
|
25,157
|
|
|
C$
|
41
|
|
|
C$
|
22,231
|
|
|
C$
|
34
|
|
|
C$
|
75,712
|
|
|
C$
|
40
|
|
|
C$
|
64,356
|
|
|
C$
|
36
|
|
Inventory and other
adjustments (C$)(v)
|
|
(99)
|
|
|
—
|
|
|
427
|
|
|
—
|
|
|
225
|
|
|
—
|
|
|
(257)
|
|
|
—
|
|
Minesite operating
costs (C$)
|
|
C$
|
25,058
|
|
|
C$
|
41
|
|
|
C$
|
22,658
|
|
|
C$
|
34
|
|
|
C$
|
75,937
|
|
|
C$
|
40
|
|
|
C$
|
64,099
|
|
|
C$
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
68,259
|
|
|
|
|
86,821
|
|
|
|
|
189,333
|
|
|
|
|
267,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
48,844
|
|
|
$
|
716
|
|
|
$
|
60,484
|
|
|
$
|
697
|
|
|
$
|
166,817
|
|
|
$
|
881
|
|
|
$
|
168,859
|
|
|
$
|
631
|
|
Inventory and other
adjustments(iv)
|
|
(945)
|
|
|
(14)
|
|
|
(2,199)
|
|
|
(26)
|
|
|
(5,592)
|
|
|
(29)
|
|
|
(4,622)
|
|
|
(17)
|
|
Cash operating costs
(co-product basis)
|
|
$
|
47,899
|
|
|
$
|
702
|
|
|
$
|
58,285
|
|
|
$
|
671
|
|
|
$
|
161,225
|
|
|
$
|
852
|
|
|
$
|
164,237
|
|
|
$
|
614
|
|
By-product metal
revenues
|
|
(514)
|
|
|
(8)
|
|
|
(919)
|
|
|
(10)
|
|
|
(2,314)
|
|
|
(13)
|
|
|
(3,284)
|
|
|
(12)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
47,385
|
|
|
$
|
694
|
|
|
$
|
57,366
|
|
|
$
|
661
|
|
|
$
|
158,911
|
|
|
$
|
839
|
|
|
$
|
160,953
|
|
|
$
|
602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
888
|
|
|
|
|
939
|
|
|
|
|
2,562
|
|
|
|
|
2,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
48,844
|
|
|
$
|
55
|
|
|
$
|
60,484
|
|
|
$
|
64
|
|
|
$
|
166,817
|
|
|
$
|
65
|
|
|
$
|
168,859
|
|
|
$
|
59
|
|
Production costs
(C$)
|
|
C$
|
64,489
|
|
|
C$
|
73
|
|
|
C$
|
77,233
|
|
|
C$
|
82
|
|
|
C$
|
214,629
|
|
|
C$
|
84
|
|
|
C$
|
221,168
|
|
|
C$
|
77
|
|
Inventory and other
adjustments (C$)(v)
|
|
474
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
(5,153)
|
|
|
(2)
|
|
|
(2,885)
|
|
|
(1)
|
|
Minesite operating
costs (C$)
|
|
C$
|
64,963
|
|
|
C$
|
73
|
|
|
C$
|
77,242
|
|
|
C$
|
82
|
|
|
C$
|
209,476
|
|
|
C$
|
82
|
|
|
C$
|
218,283
|
|
|
C$
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine(i)
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
88,602
|
|
|
|
|
82,097
|
|
|
|
|
263,868
|
|
|
|
|
235,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
50,736
|
|
|
$
|
573
|
|
|
$
|
45,020
|
|
|
$
|
548
|
|
|
$
|
148,613
|
|
|
$
|
563
|
|
|
$
|
130,273
|
|
|
$
|
552
|
|
Inventory and other
adjustments(iv)
|
|
1,632
|
|
|
18
|
|
|
3,624
|
|
|
44
|
|
|
3,846
|
|
|
15
|
|
|
5,513
|
|
|
23
|
|
Cash operating costs
(co-product basis)
|
|
$
|
52,368
|
|
|
$
|
591
|
|
|
$
|
48,644
|
|
|
$
|
592
|
|
|
$
|
152,459
|
|
|
$
|
578
|
|
|
$
|
135,786
|
|
|
$
|
575
|
|
By-product metal
revenues
|
|
(1,652)
|
|
|
(19)
|
|
|
(1,300)
|
|
|
(15)
|
|
|
(5,198)
|
|
|
(20)
|
|
|
(4,166)
|
|
|
(17)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
50,716
|
|
|
$
|
572
|
|
|
$
|
47,344
|
|
|
$
|
577
|
|
|
$
|
147,261
|
|
|
$
|
558
|
|
|
$
|
131,620
|
|
|
$
|
558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine(i)
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
2,557
|
|
|
|
|
2,528
|
|
|
|
|
7,700
|
|
|
|
|
7,564
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
50,736
|
|
|
$
|
20
|
|
|
$
|
45,020
|
|
|
$
|
18
|
|
|
$
|
148,613
|
|
|
$
|
19
|
|
|
$
|
130,273
|
|
|
$
|
17
|
|
Production costs
(C$)
|
|
C$
|
65,891
|
|
|
C$
|
26
|
|
|
C$
|
56,303
|
|
|
C$
|
22
|
|
|
C$
|
191,194
|
|
|
C$
|
25
|
|
|
C$
|
170,167
|
|
|
C$
|
22
|
|
Inventory and other
adjustments (C$)(v)
|
|
2,134
|
|
|
—
|
|
|
3,787
|
|
|
2
|
|
|
5,212
|
|
|
—
|
|
|
5,658
|
|
|
1
|
|
Minesite operating
costs (C$)
|
|
C$
|
68,025
|
|
|
C$
|
26
|
|
|
C$
|
60,090
|
|
|
C$
|
24
|
|
|
C$
|
196,406
|
|
|
C$
|
25
|
|
|
C$
|
175,825
|
|
|
C$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
49,459
|
|
|
|
|
50,415
|
|
|
|
|
139,626
|
|
|
|
|
149,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
39,142
|
|
|
$
|
791
|
|
|
$
|
37,787
|
|
|
$
|
750
|
|
|
$
|
120,617
|
|
|
$
|
864
|
|
|
$
|
110,126
|
|
|
$
|
738
|
|
Inventory and other
adjustments(iv)
|
|
1,117
|
|
|
23
|
|
|
264
|
|
|
5
|
|
|
1,910
|
|
|
14
|
|
|
322
|
|
|
2
|
|
Cash operating costs
(co-product basis)
|
|
$
|
40,259
|
|
|
$
|
814
|
|
|
$
|
38,051
|
|
|
$
|
755
|
|
|
$
|
122,527
|
|
|
$
|
878
|
|
|
$
|
110,448
|
|
|
$
|
740
|
|
By-product metal
revenues
|
|
(44)
|
|
|
(1)
|
|
|
(69)
|
|
|
(2)
|
|
|
(154)
|
|
|
(2)
|
|
|
(153)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
40,215
|
|
|
$
|
813
|
|
|
$
|
37,982
|
|
|
$
|
753
|
|
|
$
|
122,373
|
|
|
$
|
876
|
|
|
$
|
110,295
|
|
|
$
|
739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
|
474
|
|
|
|
|
429
|
|
|
|
|
1,365
|
|
|
|
|
1,291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
39,142
|
|
|
$
|
83
|
|
|
$
|
37,787
|
|
|
$
|
88
|
|
|
$
|
120,617
|
|
|
$
|
88
|
|
|
$
|
110,126
|
|
|
$
|
85
|
|
Production costs
(€)
|
|
€
|
33,643
|
|
|
€
|
71
|
|
|
€
|
32,734
|
|
|
€
|
76
|
|
|
€
|
101,480
|
|
|
€
|
74
|
|
|
€
|
98,586
|
|
|
€
|
76
|
|
Inventory and other
adjustments (€)(v)
|
|
526
|
|
|
1
|
|
|
287
|
|
|
1
|
|
|
955
|
|
|
1
|
|
|
65
|
|
|
—
|
|
Minesite operating
costs (€)
|
|
€
|
34,169
|
|
|
€
|
72
|
|
|
€
|
33,021
|
|
|
€
|
77
|
|
|
€
|
102,435
|
|
|
€
|
75
|
|
|
€
|
98,651
|
|
|
€
|
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
46,405
|
|
|
|
|
46,897
|
|
|
|
|
131,887
|
|
|
|
|
140,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
33,714
|
|
|
$
|
727
|
|
|
$
|
25,582
|
|
|
$
|
545
|
|
|
$
|
103,156
|
|
|
$
|
782
|
|
|
$
|
77,974
|
|
|
$
|
555
|
|
Inventory and other
adjustments(iv)
|
|
(28)
|
|
|
(1)
|
|
|
3,986
|
|
|
85
|
|
|
(2,335)
|
|
|
(18)
|
|
|
7,189
|
|
|
51
|
|
Cash operating costs
(co-product basis)
|
|
$
|
33,686
|
|
|
$
|
726
|
|
|
$
|
29,568
|
|
|
$
|
630
|
|
|
$
|
100,821
|
|
|
$
|
764
|
|
|
$
|
85,163
|
|
|
$
|
606
|
|
By-product metal
revenues
|
|
(8,969)
|
|
|
(193)
|
|
|
(11,937)
|
|
|
(254)
|
|
|
(27,019)
|
|
|
(204)
|
|
|
(33,295)
|
|
|
(237)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
24,717
|
|
|
$
|
533
|
|
|
$
|
17,631
|
|
|
$
|
376
|
|
|
$
|
73,802
|
|
|
$
|
560
|
|
|
$
|
51,868
|
|
|
$
|
369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
508
|
|
|
|
|
587
|
|
|
|
|
1,630
|
|
|
|
|
1,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
33,714
|
|
|
$
|
66
|
|
|
$
|
25,582
|
|
|
$
|
44
|
|
|
$
|
103,156
|
|
|
$
|
63
|
|
|
$
|
77,974
|
|
|
$
|
44
|
|
Inventory and other
adjustments(v)
|
|
(104)
|
|
|
—
|
|
|
4,285
|
|
|
7
|
|
|
(2,575)
|
|
|
(1)
|
|
|
7,056
|
|
|
4
|
|
Minesite operating
costs
|
|
$
|
33,610
|
|
|
$
|
66
|
|
|
$
|
29,867
|
|
|
$
|
51
|
|
|
$
|
100,581
|
|
|
$
|
62
|
|
|
$
|
85,030
|
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
8,024
|
|
|
|
|
11,054
|
|
|
|
|
28,728
|
|
|
|
|
34,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
8,327
|
|
|
$
|
1,038
|
|
|
$
|
7,836
|
|
|
$
|
709
|
|
|
$
|
28,204
|
|
|
$
|
982
|
|
|
$
|
22,175
|
|
|
$
|
645
|
|
Inventory and other
adjustments(iv)
|
|
447
|
|
|
55
|
|
|
88
|
|
|
8
|
|
|
730
|
|
|
25
|
|
|
523
|
|
|
15
|
|
Cash operating costs
(co-product basis)
|
|
$
|
8,774
|
|
|
$
|
1,093
|
|
|
$
|
7,924
|
|
|
$
|
717
|
|
|
$
|
28,934
|
|
|
$
|
1,007
|
|
|
$
|
22,698
|
|
|
$
|
660
|
|
By-product metal
revenues
|
|
(784)
|
|
|
(97)
|
|
|
(937)
|
|
|
(85)
|
|
|
(3,581)
|
|
|
(125)
|
|
|
(3,167)
|
|
|
(92)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
7,990
|
|
|
$
|
996
|
|
|
$
|
6,987
|
|
|
$
|
632
|
|
|
$
|
25,353
|
|
|
$
|
882
|
|
|
$
|
19,531
|
|
|
$
|
568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
309
|
|
|
|
|
518
|
|
|
|
|
1,039
|
|
|
|
|
1,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
8,327
|
|
|
$
|
27
|
|
|
$
|
7,836
|
|
|
$
|
15
|
|
|
$
|
28,204
|
|
|
$
|
27
|
|
|
$
|
22,175
|
|
|
$
|
14
|
|
Inventory and other
adjustments(v)
|
|
262
|
|
|
1
|
|
|
22
|
|
|
—
|
|
|
372
|
|
|
—
|
|
|
305
|
|
|
—
|
|
Minesite operating
costs
|
|
$
|
8,589
|
|
|
$
|
28
|
|
|
$
|
7,858
|
|
|
$
|
15
|
|
|
$
|
28,576
|
|
|
$
|
27
|
|
|
$
|
22,480
|
|
|
$
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per Ounce of Gold
Produced(ii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
|
(thousands)
|
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
|
27,074
|
|
|
|
|
25,143
|
|
|
|
|
75,049
|
|
|
|
|
75,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
18,093
|
|
|
$
|
668
|
|
|
$
|
16,015
|
|
|
$
|
637
|
|
|
$
|
51,293
|
|
|
$
|
683
|
|
|
$
|
44,071
|
|
|
$
|
583
|
|
Inventory and other
adjustments(iv)
|
|
1,061
|
|
|
39
|
|
|
1,528
|
|
|
61
|
|
|
1,842
|
|
|
25
|
|
|
1,901
|
|
|
25
|
|
Cash operating costs
(co-product basis)
|
|
$
|
19,154
|
|
|
$
|
707
|
|
|
$
|
17,543
|
|
|
$
|
698
|
|
|
$
|
53,135
|
|
|
$
|
708
|
|
|
$
|
45,972
|
|
|
$
|
608
|
|
By-product metal
revenues
|
|
(606)
|
|
|
(22)
|
|
|
(1,022)
|
|
|
(41)
|
|
|
(1,982)
|
|
|
(26)
|
|
|
(4,569)
|
|
|
(61)
|
|
Cash operating costs
(by-product basis)
|
|
$
|
18,548
|
|
|
$
|
685
|
|
|
$
|
16,521
|
|
|
$
|
657
|
|
|
$
|
51,153
|
|
|
$
|
682
|
|
|
$
|
41,403
|
|
|
$
|
547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
Nine Months
Ended
|
|
Per
Tonne(iii)
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
September 30,
2018
|
|
|
September 30,
2017
|
|
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
|
(thousands)
|
|
($ per tonne
)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
|
1,426
|
|
|
|
|
1,542
|
|
|
|
|
4,677
|
|
|
|
|
4,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
|
18,093
|
|
|
$
|
13
|
|
|
$
|
16,015
|
|
|
$
|
10
|
|
|
$
|
51,293
|
|
|
$
|
11
|
|
|
$
|
44,071
|
|
|
$
|
10
|
|
Inventory and other
adjustments(v)
|
|
816
|
|
|
—
|
|
|
1,097
|
|
|
1
|
|
|
1,129
|
|
|
—
|
|
|
779
|
|
|
—
|
|
Minesite operating
costs
|
|
$
|
18,909
|
|
|
$
|
13
|
|
|
$
|
17,112
|
|
|
$
|
11
|
|
|
$
|
52,422
|
|
|
$
|
11
|
|
|
$
|
44,850
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
|
(ii) Total cash costs
per ounce of gold produced is not a recognized measure under IFRS
and this data may not be comparable to data reported by other gold
producers. 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 (without deducting
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 for by-product metal revenues, inventory
production costs, smelting, refining and marketing charges, 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. 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 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 analysis in order to quantify the effects
of fluctuating metal prices and exchange rates.
|
|
(iii) Minesite costs
per tonne is not a recognized measure under IFRS and this data may
not be comparable to data reported by other gold producers. This
measure is calculated by adjusting production costs as shown in the
condensed interim consolidated statements of income for inventory
production costs and other adjustments, and then dividing by tonnes
of ore milled. As the total cash costs per ounce of gold produced
measure can be affected 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.
|
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include the addition of
smelting, refining and marketing charges to production
costs.
|
|
(v) This inventory
and other adjustment reflects production costs associated with the
portion of production still in inventory and smelting, refining and
marketing charges associated with production.
|
|
(vi) The LaRonde Zone
5 mine's per ounce of gold production calculations exclude 515
ounces for the three and nine months ended September 30, 2017 of
payable gold production and the associated costs which were
produced prior to the achievement of commercial production on June
1, 2018.
|
|
(vii) The LaRonde
Zone 5 mine's per tonne calculations exclude 7,709 tonnes for the
three and nine months ended September 30, 2017 and the associated
costs which were processed prior to the achievement of commercial
production on June 1, 2018.
|
|
(viii) The Goldex
mine's data presented on a per ounce of gold produced basis
for the nine months ended September 30, 2017 excludes 8,041 ounces
of payable gold production and the associated costs related to the
Deep 1 Zone which were produced prior to the achievement of
commercial production.
|
|
(ix) The Goldex
mine's data presented on a per tonne basis for the nine months
ended September 30, 2017 excludes 175,514 tonnes processed and
the associated costs related to the Deep 1 Zone which were
processed prior to the achievement of commercial
production.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2018
|
|
|
Three Months
Ended
September 30, 2017
|
|
|
Nine Months
Ended
September 30, 2018
|
|
|
Nine Months
Ended
September 30, 2017
|
|
Production costs per
the consolidated statements of income and comprehensive income
(thousands of United States dollars)
|
|
$
|
276,862
|
|
|
$
|
262,173
|
|
|
$
|
875,883
|
|
|
$
|
770,153
|
|
Adjusted gold
production (ounces)(i) (ii)
|
|
421,718
|
|
|
453,847
|
|
|
1,215,957
|
|
|
1,291,765
|
|
Production costs per
ounce of adjusted gold production(i) (ii)
|
|
$
|
657
|
|
|
$
|
578
|
|
|
$
|
720
|
|
|
$
|
596
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(iii)
|
|
33
|
|
|
45
|
|
|
(1)
|
|
|
26
|
|
Total cash costs per
ounce of gold produced (co-product basis)(iv)
|
|
$
|
690
|
|
|
$
|
623
|
|
|
$
|
719
|
|
|
$
|
622
|
|
By-product metal
revenues
|
|
(53)
|
|
|
(77)
|
|
|
(72)
|
|
|
(75)
|
|
Total cash costs per
ounce of gold produced (by-product basis)(iv)
|
|
$
|
637
|
|
|
$
|
546
|
|
|
$
|
647
|
|
|
$
|
547
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
|
139
|
|
|
178
|
|
|
157
|
|
|
155
|
|
General and
administrative expenses (including stock options)
|
|
70
|
|
|
62
|
|
|
77
|
|
|
67
|
|
Non-cash reclamation
provision and other
|
|
2
|
|
|
3
|
|
|
4
|
|
|
3
|
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
|
$
|
848
|
|
|
$
|
789
|
|
|
$
|
885
|
|
|
$
|
772
|
|
By-product metal
revenues
|
|
53
|
|
|
77
|
|
|
72
|
|
|
75
|
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
|
$
|
901
|
|
|
$
|
866
|
|
|
$
|
957
|
|
|
$
|
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(I) Adjusted gold
production for the nine months ended September 30, 2017 excludes
8,041 ounces of payable gold production at the Goldex mine's Deep 1
Zone which were produced prior to the achievement of commercial
production.
|
|
(ii) Adjusted gold
production for the three and nine months ended September 30, 2017
exclude 515 ounces of payable gold production at the LaRonde
Zone 5 mine which were produced prior to the achievement of
commercial production on June 1, 2018.
|
|
(iii) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon transfer of control over metals sold
to the customer. As total cash costs per ounce of gold produced are
calculated on a production basis, an inventory adjustment is made
to reflect the portion of production not yet recognized as revenue.
Other adjustments include the addition of smelting, refining and
marketing charges to production costs.
|
|
(iv) Total cash costs
per ounce of gold produced is not a recognized measure under IFRS
and this data may not be comparable to data reported by other gold
producers. 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 (without deducting
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 for by-product metal revenues, inventory
production costs, smelting, refining and marketing charges, 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. 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 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 analysis in order to quantify the effects
of fluctuating metal prices and exchange rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/agnico-eagle-reports-third-quarter-2018-results-production-guidance-increased-for-2018-and-2019-nunavut-development-projects-continue-to-advance-as-planned-drilling-extends-amaruq-mineralization-at-depth-300737431.html
SOURCE Agnico Eagle Mines Limited