Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless
otherwise noted)
TORONTO, Feb. 23, 2022 /CNW/ - Agnico Eagle Mines
Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the
"Company") today announced senior management changes
and reported fourth quarter and full year 2021 financial and
operating results, as well as future operating guidance.
Ammar Al-Joundi has been
appointed President and Chief Executive Officer, effective
immediately. Mr. Al-Joundi is a proven executive with a long
history of mining industry experience who previously served as
President of Agnico Eagle. With this appointment, Mr.
Al-Joundi joins the Company's board of directors (the
"Board"). Anthony Makuch
advised the Board that he has decided to step down as Chief
Executive Officer and as a director of Agnico Eagle.
Mr. Al-Joundi has over 20 years of experience in mining, capital
markets and banking, with specialization in finance and business
strategy. He joined Agnico Eagle as President in 2015, after
serving as Chief Financial Officer at Agnico Eagle (from
September 2010 to June 2012) and as Chief Financial Officer and
Senior Executive Vice President at Barrick Gold Corporation (from
July 2012 to February 2015).
Prior to joining Agnico Eagle in 2010, he spent 11 years at Barrick
in various senior financial roles including Senior Vice-President
of Finance, Senior Vice-President of Business Strategy and Capital
Allocation, and Executive Director and CFO of Barrick South America.
"Ammar has the right mix of skill, experience and knowledge to
execute the new Agnico Eagle's strategic plan to become the world's
leading and highest quality senior gold producer," said Executive
Chair Sean Boyd. "We are
confident that Ammar is the right leader to complete the
integration of Agnico Eagle and Kirkland Lake Gold and, working
closely with our combined Board members and executive team and our
outstanding employees, he will help drive the Company's successes
as we continue to work to create long-term value for the Company's
shareholders and other key stakeholders," added Mr. Boyd.
The Agnico Eagle Board expresses its thanks to Mr. Makuch for
steering Kirkland Lake Gold Ltd. ("Kirkland Lake Gold") through
this transformative transaction and for his contributions to
Kirkland Lake Gold during his tenure.
Tony Makuch said: "We built
Kirkland Lake Gold by acquiring, developing and operating
high-quality assets in good jurisdictions with significant
exploration upside. Just as important, we build a business
based on honesty, integrity, respect for all people and support for
communities. We have culminated all this with the merger of
equals with Agnico Eagle and I am very proud to have been involved
in creating the third largest global gold producer in the world.
I am leaving Agnico with a strong and dedicated leadership
team and I believe they will continue to be successful. I
would like to thank the tremendous team of people at Kirkland Lake
Gold for their years of hard work and support in building a truly
special company."
Jeff Parr, Vice-Chair of Agnico
Eagle and former Chair of Kirkland Lake Gold, said, "We want to
thank Tony for his tremendous contribution to the success of
Kirkland Lake Gold, building the company into a 1.4 million ounce
per year producer with the industry's lowest unit costs and
significant growth potential. Tony's track record for
enhancing the value of assets through investment in exploration,
development and the optimization of performance is unsurpassed and
we know he will continue to have great success in whatever venture
he chooses next."
Agnico Eagle 2021 highlights:
- Record annual gold production – Payable gold
production1 in the full year 2021 was 2,030,176 ounces
(excluding 56,229 ounces of payable gold production at Hope Bay,
and including 24,057 ounces and 1,956 ounces of pre-commercial gold
production at the Tiriganiaq open pit at Meliadine and the Amaruq
underground project, respectively) at production costs per ounce of
$835, total cash costs per
ounce2 of $761 and all-in
sustaining costs ("AISC") per ounce3 of $1,038. Production costs per ounce, total cash
costs per ounce and AISC per ounce exclude the Hope Bay mine and
the pre-commercial production ounces from Amaruq and Tiriganiaq
- Strong Quarterly production in spite of COVID-19 impacts
– Payable gold production in the fourth quarter of 2021 was 501,227
ounces (excluding 705 ounces of payable gold production at Hope
Bay, and including 1,608 ounces of pre-commercial gold production
at the Amaruq underground project) at production costs per ounce of
$892, total cash costs per ounce of
$812 and AISC per ounce of
$1,126. Production costs per ounce,
total cash costs per ounce and AISC per ounce exclude the
pre-commercial production ounces from Amaruq. Production and costs
in the fourth quarter of 2021 were negatively affected by a
reduction in operating activities in Nunavut largely due to a COVID-19 outbreak in
mid-December 2021
- Several operational milestones achieved in the fourth
quarter of 2021 and full year 2021 – In December 2021, new monthly records for gold
production were set at Kittila and Canadian Malartic. In 2021, new
annual records for gold production were set at Meliadine, Kittila
and Canadian Malartic, while the LaRonde Complex had its best year
ever in terms of tonnage milled. Several production milestones were
also reached in the fourth quarter of 2021, with the LaRonde
Complex pouring its seven millionth ounce of gold, Goldex reached
one million ounces of gold produced (since the 2013 restart) and
Canadian Malartic reached six million ounces of gold produced (100%
basis)
- COVID-19 still a concern, but risks appear manageable at
this time – The Company has increased its efforts to monitor
and manage risks associated with the Omicron variant of COVID-19.
At this time, case counts appear to be dropping and the Company
expects that it will be able to maintain budgeted production
levels. The Company expects that its efforts to help protect the
northern communities from this COVID-19 variant will have a
slightly negative effect on production in the first quarter of 2022
as the Nunavut-based workforce
("Nunavummiut") were sent back to their communities in December 2021. Plans are being reviewed to
re-integrate the local workforce as soon as possible
"The fourth quarter of 2021 was Agnico Eagle's fifth consecutive
quarter of over 500,000 ounces of gold production, which is
particularly impressive given the impacts of COVID-19 during the
latter part of the quarter. On a full year basis, in 2021 the
Company achieved records in gold production, operating cashflow and
mineral reserves, all while delivering the best safety performance
in the Company's 64-year history", said Ammar Al-Joundi, Agnico Eagle's President and
Chief Executive Officer. "Looking forward, all of our mines, both
those contributed by Agnico Eagle and Kirkland Lake Gold, are well
positioned for another strong year in 2022, and well into the
future. Furthermore, the Company is investing more than ever
before at our mines and in exploration to build an even stronger
business, in what we believe are the best places in the world to
mine for gold", added Mr. Al-Joundi.
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|
1 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.
|
2 Production
costs per ounce and total cash costs per ounce are non-GAAP ratios
that are not standardized financial measures under the financial
reporting framework used to prepare the Company's financial
statements and, unless otherwise specified, is reported on a
by-product basis in this news release. For the detailed
calculation of production costs per ounce and the 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".
|
3 AISC per
ounce is a non-GAAP ratio that is not a standardized financial
measure under the financial reporting framework used to prepare the
Company's financial statements and, unless otherwise specified, is
reported on a by-product basis in this news release. 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".
|
The New Agnico Eagle – A best-in-class gold mining
company with the largest gold production from Canada and well positioned internationally
with profitable and prospective assets in Australia, Finland and Mexico.
- Merger with Kirkland Lake Gold Ltd. (the "Merger") – On
February 8, 2022, the Merger with
Kirkland Lake Gold Ltd. ("Kirkland Lake Gold") was completed
,
- New three-year operational guidance – Payable gold
production for 2022 is forecast to be approximately 3.2 to 3.4
million ounces with total cash costs per ounce expected to be
between $725 and $775 and AISC per ounce expected to be between
$1,000 and $1,050. Gold production for 2023 and 2024
is expected to be in a similar range to 2022 at approximately 3.2
to 3.4 million ounces of gold with relatively stable total cash
costs per ounce and AISC per ounce compared to 2022. As the
expected Merger synergies are realized, both cost metrics are
expected to then decline in 2023 and 2024. Estimated capital
expenditures for 2022 total approximately $1.4 billion, which includes approximately
$703 million of sustaining
capital4 at the Company's operating mines and
$710 million on growth
projects5. Not included in the 2022 estimated
capital expenditures is approximately $131
million relating to capitalized exploration
- Strong Combined Mineral Reserve Base Totaling 44.6 Million
Ounces of Gold – At December 31,
2021, Agnico Eagle's proven and probable mineral reserves
were a record 25.7 million ounces of gold (337 million tonnes
grading 2.37 grams per tonne ("g/t") gold); measured and indicated
mineral resources were 17.2 million ounces (353 million tonnes
grading 1.52 g/t gold); and inferred mineral resources were 23.7
million ounces (272 million tonnes grading 2.72 g/t gold). At
December 31, 2021, Kirkland Lake
Gold's proven and probable mineral reserves were 18.9 million
ounces of gold (584 million tonnes grading 1.01 g/t gold); measured
and indicated mineral resources were 22.4 million ounces (647
million tonnes grading 1.08 g/t gold); and inferred mineral
resources were 6.9 million ounces (94.0 million tonnes grading 2.28
g/t gold)
- Large exploration program planned for 2022 with a focus on
minesite and pipeline opportunities – The exploration budget in
2022 is approximately $324 million
($193 million of expensed exploration
and $131 million of capitalized
exploration), with a primary focus on the expansion of mineral
reserves and mineral resources at operating mines (Detour, Macassa,
Fosterville and Meliadine) and
pipeline projects (the Odyssey and Hope Bay projects)
- Future Value Drivers
-
- Synergies and optimization opportunities expected to drive
over $2B in value creation over the
next 10 years – In 2022, the Company expects to
realize Merger-related corporate and operational synergies of
approximately $40 million to
$60 million, of which $12 million have already been realized at the
time of this news release. In subsequent years, the Company
expects to ramp up these synergies to approximately $165 million per year. A further
$590 million over 10 years are
expected to be realized through strategic optimizations which
include the development of the Amalgamated Kirkland ("AK") deposit
at the Kirkland Lake camp with
initial gold production potentially as early as 2024
- Detour Lake Mine – Successful exploration programs in
2020 and 2021 led to a significant increase in open-pit mineral
resources in 2021. These new mineral resources and ongoing business
improvement initiatives will be incorporated into a new technical
report expected to be filed in the second quarter of 2022. This
report is expected to show growth in mineral reserves and provide
additional opportunities to enhance the future production profile
of the mine
- Macassa Mine – Sinking of the #4 Shaft was completed in
January 2022, over a year earlier
than initially planned. Completion of other #4 Shaft development
activities are expected in late 2022. The #4 Shaft is expected to
provide numerous benefits, including increased hoisting capacity,
improved unit costs, better ventilation, and enhanced capabilities
to pursue exploration potential across the Kirkland Lake camp. Gold production at Macassa
is forecast to increase from 170,000 to 190,000 ounces in 2022 with
a target to approximately 330,000 to 350,000 ounces in 2024.
Production levels could potentially increase once the full benefit
of the #4 Shaft is realized
- Fosterville Mine – Based on current exploration results,
the Company's long-term goal for Fosterville is to establish the mine as a
long-life asset through success in replacing mineral reserves. The
Company believes there is potential to discover additional
high-grade zones that could potentially support higher production
levels and improvements in unit costs
- Odyssey Project – Underground development and surface
construction activities remain on schedule and on budget as of the
date hereof. In 2022, approximately 136,835 metres of surface and
underground drilling is planned to infill and expand mineral
reserves. From 2023 to 2028, gold production is forecast to be
approximately 932,000 ounces at total cash costs of approximately
$800 per ounce (all numbers on a 100%
basis). Average annual payable production is expected to be
approximately 545,400 ounces of gold from 2029 to 2039, with total
cash costs per ounce of approximately $630
- Kittila Expansion Project – The mill expansion was
completed ahead of schedule in late 2020 and shaft sinking is
expected to be completed in the second half of 2022, with
commissioning of the production hoist expected in late 2022 or
early 2023. Completion of the shaft is expected to result in lower
operating costs and provide additional drilling access to increase
mineral reserves and mineral resources at depth. Estimated total
expansion project costs remain within the previously disclosed
range of €190 to €200 million
- Optimization and consolidation of mining assets and
infrastructure in the Kirkland
Lake gold camp – There are several development assets in
the Kirkland Lake area with
significant mineral reserves and mineral resources. Studies are
underway to evaluate the potential to advance some of these assets
into production (AK, Upper Beaver, Upper
Canada) either as standalone projects or by leveraging
existing infrastructure at Macassa or the Holt processing
complex
- Strong balance sheet allows for asset development and robust
returns to shareholders, including a new share buyback program
– With over $2.2 billion in
liquidity, the Company is well positioned to fund its existing
capital requirements and increase returns to shareholders. With
this strong financial position, the Company announced today that,
subject to the approval of the Toronto Stock Exchange (the "TSX),
it intends to launch a normal course issuer bid to repurchase for
cancellation up to 9 million of its common shares, for up to an
aggregate amount of $500 million,
representing approximately 2% of its 454.8 million common shares
issued and outstanding as at February 23,
2022.
- Quarterly dividend increased by 14% – A quarterly
dividend of $0.40 per share has been
declared (previous quarterly dividend was $0.35)
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|
4 Sustaining
capital is a non-GAAP measure that is not a standardized financial
measure under the financial reporting framework used to prepare the
Company's financial statements. See "Note Regarding Certain
Measures of Performance".
|
5 Growth projects or development
capital is a non-GAAP measure that is not a standardized financial
measure under the financial reporting framework used to prepare the
Company's financial statements. See "Note Regarding Certain
Measures of Performance".
|
Fourth Quarter 2021 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Thursday, February 24, 2022 at
11:00 AM (E.S.T.) to discuss
the Company's fourth quarter and full year financial and operating
results, as well as operating plans following completion of the
Merger.
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
1-416-764-8659 or toll-free 1-888-664-6392. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access
code 093746#. The conference call replay will expire on
Friday, March 25, 2022.
The webcast and presentation slides will be archived for 180
days on the Company's website.
Fourth Quarter 2021 Financial and Production Results
In the fourth quarter of 2021, net income was $101.1 million ($0.41 per share). This result includes
non-cash mark-to-market gains on warrants of $12.8 million ($0.05 per share), non-cash foreign currency
translation losses of $12.8 million ($0.05 per share), derivative gains on financial
instruments of $7.1 million
($0.03 per share), transaction costs
relating to the Merger with Kirkland Lake Gold of $7.0 million ($0.03
per share), foreign currency translation losses on deferred tax
liabilities and non-recurring tax adjustments of $6.5 million ($0.03
per share) and various other adjustment losses of $3.8 million ($0.02
per share). Excluding these items would result in adjusted
net income6 of $111.3
million or $0.46 per share for
the fourth quarter of 2021. For the fourth quarter of 2020,
the Company reported net income of $205.2
million or net income of $0.85
per share.
Included in the fourth quarter of 2021 net income, and not
adjusted above, is a non-cash stock option expense of $3.6 million ($0.01
per share) and workforce costs of employees affected by the
COVID-19 pandemic (primarily Nunavut-based) of $2.2
million ($0.01 per share).
For the full year 2021, the Company reported net income of
$543.0 million, or net income of
$2.23 per share. This compares
with the full year 2020, when net income was $511.6 million, or net income of $2.12 per share.
The decrease in net income in the fourth quarter of 2021
compared to the prior-year period is primarily due to lower
operating margins7 (lower average realized metal prices
and higher production costs, partially offset by higher sales
volumes), lower unrealized gains for non-cash items related to
mark-to-market adjustments on financial instruments, higher
amortization of property, plant and mine development resulting from
higher production volumes at the Meadowbank Complex and the
Meliadine and Kittila mines and higher exploration expenses,
partially offset by lower environmental remediation costs.
The increase in net income for the full year 2021, compared to
the prior-year period, is primarily due to higher operating margins
(higher sales volumes due to record gold production and higher
average realized metal prices), lower environmental remediation
costs and lower foreign currency translation loss. These
factors were partially offset by higher unrealized losses for
non-cash items related to mark-to-market adjustments on financial
instruments, higher amortization of property, plant and mine
development from higher production volumes and the contribution of
the Hope Bay mine, higher exploration expenses, higher general and
administrative costs, which includes a health care donation of
$8 million during the year, and
higher income and mining taxes driven by higher operating
margins.
In the fourth quarter of 2021, cash provided by operating
activities was $261.7 million
($336.2 million before changes in
non-cash components of working capital), compared to the fourth
quarter of 2020 when cash provided by operating activities was
$403.5 million ($386.8 million before changes in non-cash
components of working capital).
For the full year 2021, cash provided by operating activities
was a record $1,316.0 million
($1,597.2 million before changes in
non-cash components of working capital), compared to the full year
2020 when cash provided by operating activities was
$1,192.1 million ($1,211.1 million before changes in non-cash
components of working capital).
The decrease in cash provided by operating activities (before
changes in non-cash components of working capital) in the fourth
quarter of 2021, compared to the prior-year period, is primarily
due to a decrease in mine operating margins that resulted from
lower average realized metal prices and higher production costs,
partially offset by higher sales volumes.
The increase in cash provided by operating activities in the
full year 2021, compared to the prior-year period, is primarily due
to an increase in operating margins that resulted from higher sales
volumes and higher average realized metals prices, partially offset
by higher cash taxes related to the higher mine operating margins
and payments for taxes related to the 2020 tax year in the first
quarter of 2021.
In the fourth quarter of 2021, the Company's payable gold
production was 501,227 ounces (excluding 705 ounces of payable gold
production at Hope Bay, and including 1,608 ounces of
pre-commercial gold production at the Amaruq underground
project). This compares to quarterly payable gold production
of 501,445 ounces in the prior-year period (which included
pre-commercial gold production of 10,995 ounces from the IVR pit at
the Meadowbank Complex and 4,509 ounces from the Tiriganiaq open
pit at Meliadine). Including the Hope Bay mine, the Company's
quarterly gold production was 501,932 ounces in the fourth quarter
of 2021.
Gold production in the fourth quarter of 2021, when compared to
the prior-year period, was essentially the same. However,
production in the fourth quarter of 2021 was negatively affected by
a reduction in operating activities in Nunavut largely due to a COVID-19 outbreak in
mid-December 2021.
For the full year 2021, the Company's payable gold production
was a record 2,030,176 ounces (excluding 56,229 ounces of payable
gold production at Hope Bay, and including 24,057 ounces and 1,956
ounces of pre-commercial gold production at the Tiriganiaq open pit
at Meliadine and Amaruq underground project, respectively).
This compares to payable gold production of 1,736,568 ounces in the
prior-year period (which included pre-commercial gold production of
18,930 ounces from the Barnat deposit at Canadian Malartic, 10,995
ounces from the IVR pit at the Meadowbank Complex and 6,491 ounces
from the Tiriganiaq open pit at Meliadine). Including the
Hope Bay mine, the Company's payable gold production was a record
2,086,405 ounces for the full year 2021.
The higher gold production for the full year 2021, when compared
to the prior-year period, was primarily due to strong performance
at the Company's mines, including higher gold grades and tonnage at
the Canadian Malartic, Meliadine and Pinos Altos mines and the Meadowbank Complex,
and higher tonnage at the LaRonde Complex and the Goldex and
Kittila mines. This was partially offset by lower production
at the La India mine related mostly to water conservation efforts
and at Creston Mascota, where only residual leaching
occurred. Gold production for the full year 2020 was
negatively affected by COVID-19 related reductions in mining
activities which affected seven of the Company's then eight
operations. A detailed description of the production at each
mine is set out below.
Production costs per ounce in the fourth quarter of 2021 were
$892 (excluding the Hope Bay mine),
compared to $771 in the prior-year
period (prior to the acquisition of the Hope Bay mine). Total
cash costs per ounce in the fourth quarter of 2021 were
$812 (excluding the Hope Bay mine),
compared to $701 in the prior-year
period. Including the Hope Bay mine, production costs per
ounce were $929 and total cash costs
per ounce were $814 in the fourth
quarter of 2021.
Production costs per ounce for the full year 2021 were
$835 (excluding the Hope Bay mine),
compared to $838 in the prior-year
period (prior to the acquisition of the Hope Bay mine). Total
cash costs per ounce for the full year 2021 were $761 (excluding the Hope Bay mine), compared to
$775 in the prior-year period.
Including the Hope Bay mine, production costs per ounce were
$853 and total cash costs per ounce
were $770 in the full year 2021.
In the fourth quarter of 2021, production costs per ounce and
total cash costs per ounce increased when compared to the
prior-year period primarily due to higher minesite costs per tonne
at various operations including at the LaRonde and Meadowbank
Complexes and at the Pinos Altos
and La India mines, and the strengthening of the Canadian dollar
against the U.S. dollar. A detailed description of the
minesite costs per tonne at each mine is set out below.
For the full year 2021, production costs per ounce and total
cash costs per ounce (excluding the Hope Bay mine) decreased when
compared to the prior-year periods primarily due to higher gold
production, partially offset by higher minesite costs per tonne at
the LaRonde Complex and the Pinos
Altos mine and the strengthening of the Canadian dollar
against the U.S. dollar.
AISC per ounce in the fourth quarter of 2021 were $1,126 (excluding the Hope Bay mine), compared to
$985 in the prior-year period.
Including the Hope Bay mine, AISC per ounce were $1,136 in the fourth quarter of 2021. AISC
per ounce for the full year 2021 were $1,038 (excluding the Hope Bay mine), compared to
$1,051 in the prior-year
period. Including the Hope Bay mine, AISC per ounce were
$1,059 in the full year 2021.
AISC per ounce (excluding the Hope Bay mine) in the fourth
quarter of 2021 increased when compared to the prior-year period
primarily due to higher total cash costs per ounce and higher
sustaining capital expenditures. AISC per ounce (excluding
the Hope Bay mine) for the full year 2021 decreased when compared
to the prior-year period primarily due to lower total cash costs
per ounce, partially offset by higher sustaining capital
expenditures at the LaRonde Complex, and the Canadian Malartic and
the Goldex mines.
The 2021 guidance, excluding Hope Bay, was forecast to be 2.005
to 2.090 million ounces (midpoint of 2.048 million ounces) of gold
at total cash costs per ounce of $700
to $750 and AISC per ounce of
$950 to $1,000 per ounce. Production costs, total
cash costs per ounce and AISC per ounce exclude the pre-commercial
production ounces from Amaruq and Tiriganiaq.
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6 Adjusted net income and adjusted
net income per share are non-GAAP measures that are not
standardized financial measures under the financial reporting
framework used to prepare the Company's financial statements.
For a reconciliation to net income and net income per share see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance".
|
7 Operating margin is a non-GAAP
measure. For a reconciliation to net income see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance".
|
Strong financial position allows for asset development and
robust returns to shareholders
Cash and cash equivalents and short-term investments decreased
to $191.1 million at December 31, 2021, from the September 30, 2021 balance of $243.6 million, primarily due to the increase of
payments to suppliers (related to completion of the sealift season
in Nunavut). As of
December 31, 2021, the outstanding
balance on the Company's unsecured revolving bank credit facility
was nil, and available liquidity under this facility was
approximately $1.2 billion, not
including the uncommitted $600
million accordion feature. On December 22, 2021, the Company amended its
$1.2 billion unsecured revolving bank
credit facility to improve pricing (reflecting the Company's
strengthened credit profile), increase the uncommitted accordion
feature from $300 million to
$600 million and extend the maturity
date from June 22, 2023 to
December 22, 2026.
Following completion of the Merger on February 8, 2022, the Company's cash position
increased to approximately $973
million. On February 9,
2022, Fitch Ratings announced that it changed the rating
outlook on the Company's investment grade credit rating to
"positive" from "stable" and confirmed the rating at BBB, further
re-affirming the Company's strong balance sheet.
Approximately 36% of the Company's remaining 2022 estimated
Canadian dollar exposure is hedged at an average floor price above
1.25 C$/US$. Approximately 26%
of the Company's remaining 2022 estimated Mexican peso exposure is
hedged at an average floor price above 20.15
MXP/US$. Approximately 25% of the Company's remaining
2022 estimated Euro exposure is hedged at an average floor price of
approximately 1.18 US$/EUR. The
Company's remaining 2022 Australian
dollar exposure is currently unhedged. The Company's
full year 2022 cost guidance is based on assumed exchange rates of
1.25 C$/US$, 20.00 MXP/US$, 1.20
US$/EUR and 1.32 A$/US$.
Including the diesel purchased for the Company's Nunavut operations on the 2021 sealift
(consumed to mid-year 2022), approximately 40% of the Company's
diesel exposure for 2022 is hedged at an average price below the
2022 cost guidance assumption of C$0.90 per litre. These hedges have
partially mitigated the effect of inflationary pressures to date
and are expected to provide protection against inflation for the
2022 sealift diesel costs.
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs. Current hedging considerations are not factored into 2022
guidance.
Returns to Shareholders
With over $2.2 billion in
liquidity, the Company is well positioned to fund its existing
capital requirements and increase returns to shareholders.
With this strong financial position, the Company announced today
that, subject to the approval of the TSX, it intends to launch a
normal course issuer bid to repurchase for cancellation up to 9
million of its common shares, for up to an aggregate amount of
$500 million, representing
approximately 2% of its 454.8 million common shares issued and
outstanding as at February 23,
2022.
The Company will file a notice of intention with the TSX in this
regard. The Company may commence purchases under the bid,
continuing for up to one year, after the TSX has accepted the
notice of intention. Repurchases will be made through the
facilities of the TSX and the NYSE as well as through other
designated exchanges and alternative trading systems in
Canada in accordance with
applicable regulatory requirements. The price paid for such
repurchased shares will be the market price of such shares at the
time of acquisition or such other price as may be permitted by the
TSX and United States securities
laws. All repurchased shares will be cancelled. The
timing and amount of any purchases under the program are subject to
regulatory approvals and to management discretion based on factors
such as market conditions and other factors.
Dividend Record and Payment Dates for the First Quarter of
2022
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.40 per common share,
payable on March 15, 2022 to
shareholders of record as of March 7,
2022. The quarterly dividend has increased 14% from the
previous quarterly dividend of $0.35. Agnico Eagle has declared a cash
dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2022
Fiscal Year
Record
Date
|
Payment
Date
|
March 7,
2022*
|
March 15,
2022*
|
June 1, 2022
|
June 15,
2022
|
September 1,
2022
|
September 15,
2022
|
December 1,
2022
|
December 15,
2022
|
*Declared
Dividend Reinvestment Plan
Please see the following link for information on the Company's
dividend reinvestment plan: Dividend Reinvestment Plan
Capital Expenditures
Total capital expenditures (including sustaining capital) in the
fourth quarter of 2021 were $235.6
million (excluding Hope Bay). Including Hope Bay, the
total capital expenditures in fourth quarter of 2021 were
$245.4 million.
The following table sets out capital expenditures (including
sustaining capital) in the fourth quarter of 2021 and the full year
2021.
Capital
Expenditures
|
|
|
|
|
(In thousands of
U.S. dollars)
|
|
|
|
|
Sustaining
Capital
|
|
Three Months
Ended
December 31, 2021
|
|
Twelve Months
Ended
December 31, 2021
|
LaRonde
Complex
|
|
$
|
34,639
|
|
$
|
110,394
|
Canadian Malartic
mine
|
|
18,978
|
|
72,749
|
Meadowbank
Complex
|
|
11,729
|
|
48,917
|
Meliadine
mine
|
|
13,567
|
|
50,341
|
Kittila mine
|
|
15,144
|
|
42,632
|
Goldex mine
|
|
7,789
|
|
31,017
|
Pinos Altos
mine
|
|
8,395
|
|
22,216
|
La India
mine
|
|
4,237
|
|
10,117
|
Total Sustaining
Capital
|
|
$
|
114,478
|
|
$
|
388,383
|
|
|
|
|
|
Development
Capital
|
|
|
|
|
LaRonde
Complex
|
|
$
|
13,871
|
|
$
|
53,155
|
Canadian Malartic
mine
|
|
23,207
|
|
56,613
|
Meadowbank
Complex
|
|
932
|
|
9,643
|
Amaruq underground
project
|
|
22,321
|
|
98,911
|
Meliadine
mine
|
|
21,403
|
|
75,373
|
Kittila mine
|
|
21,272
|
|
77,175
|
Goldex mine
|
|
4,761
|
|
18,673
|
Pinos Altos
mine
|
|
8,622
|
|
23,777
|
La India
mine
|
|
3,219
|
|
9,383
|
Other
|
|
1,481
|
|
11,971
|
Total Development
Capital
|
|
$
|
121,089
|
|
$
|
434,674
|
Total Capital
Expenditures - excluding Hope Bay
|
|
$
|
235,567
|
|
$
|
823,057
|
|
|
|
|
|
Hope Bay mine
Sustaining Capital
|
|
$
|
9,447
|
|
$
|
44,160
|
Hope Bay mine
Development Capital
|
|
384
|
|
7,882
|
Total Capital
Expenditures – including Hope Bay
|
|
$
|
245,398
|
|
$
|
875,099
|
Demonstrating strong ESG performance
In December 2021, as a result of
an increase in COVID-19 cases at its Nunavut operations, the Company took
precautionary steps to further protect the continued health of its
Nunavut workforce and local
residents in the communities in which it operates. In
collaboration with the Nunavut
public health authorities, the Company sent home the Nunavummiut
from the Meliadine, Meadowbank and Hope Bay operations as well as
its Nunavut exploration
projects. Furthermore, as a result of the resurgence of
COVID-19 cases, personnel levels at site were reduced in December
2021. As a result, there was a reduction of activities at the
Company's Nunavut operations for
the remainder of December 2021. Activities at the Meliadine
mine were affected until mid-January
2022 and activities at the Meadowbank Complex were affected
until early February 2022. Both operations are back to
operating at normal levels. The Company is actively working
with the Nunavut public health
authorities on a reintegration plan with the objective to return
the Nunavummiut to the Company's Nunavut operations later in the first quarter
of 2022. An operational update on each of the Company's
Nunavut operations is set out
below.
In the fourth quarter of 2021, there were 232 confirmed COVID-19
cases at the Company's operations. The increased spread and
transmissibility of the Omicron variant of COVID-19 significantly
increased the confirmed COVID-19 cases in the last weeks of 2021
and the beginning of 2022. Rigorous protocols and hygiene
measures remain in place in order to keep the Company's employees
and communities safe while the mines continue to operate during the
pandemic. This is a rapidly evolving situation and the
Company is monitoring activities at its operations and reassesses
its response on an ongoing basis.
Agnico Eagle's ESG practices and contributions to the local
communities continued to be recognized by several organizations in
2021. The following awards were received by the Company's
operations:
- Agnico Eagle recognized on the Corporate Knights list of 2021
Global 100 Sustainable Corporations
- Supervisors at the LaRonde and Goldex mines received health
& safety awards from the Quebec Mining Association for
maintaining safe working environments as demonstrated by their
teams passing milestones of up to 200,000 hours worked without a
lost time accident
- The Kittila mine received the "Collaboration partner of the
year" award from Visit Levi tourism association
- Agnico Eagle Mexico recognized with the 2021 "Human Rights
Committed Company Award" by the Chihuahua State Human Rights
Commission
Agnico Eagle and Kirkland Lake Gold Merger of Equals
On February 8, 2022, the Merger
with Kirkland Lake Gold was completed. The combined company
will continue as Agnico Eagle Mines Limited and will remain listed
on the TSX and NYSE under the ticker "AEM". In aggregate,
Agnico Eagle issued approximately 209,274,263 common shares to
former Kirkland Lake Gold shareholders as consideration for their
shares. Set out below is the key senior management team, not
previously announced.
David Smith, Chief Financial
Officer: David will continue to lead the finance, Investor
Relations and IT teams. David is a Professional Engineer,
with experience as a mining analyst and has held a variety of
mining engineering positions in Canada and abroad. He joined Agnico
Eagle in 2005 and most recently served as Senior Vice President,
Finance & Chief Financial Officer since 2012.
Jean Robitaille, Chief
Transformation & Innovation Officer: Jean will continue to
provide leadership in the areas of Business Strategy, Business
Development, Capital Allocation, Business Improvement &
Innovation, Project Evaluations and Technical Services &
Studies. He has been with Agnico Eagle for over 30 years, working
in senior executive roles in Technical Services, Project
Development and Operations. Since 2020, he served as Senior
Vice President, Corporate Development, Business Strategy &
Technical Services.
Natasha Vaz, Chief Operating
Officer – Ontario, Australia & Mexico: Natasha will lead the operations
and construction teams for Ontario, Australia and Mexico. Natasha is a Professional Engineer
with over 15 years of operational and technical experience in the
mining industry. Natasha is the current chair of the Board of
Directors of the Ontario Mining Association. Most recently
she served as Chief Operating Officer of Kirkland Lake Gold.
Dominique Girard, Chief
Operating Officer – Nunavut,
Quebec & Europe: Dominique will continue to lead
the operations and construction teams for Nunavut, Quebec and Europe as well as the Canadian Procurement
team. Dominique is a mineral processing engineer whose career
with Agnico Eagle began in 2000 and includes serving as VP
Technical Services, VP Nunavut, General Manager at Meadowbank mine
and Mill Superintendent at the Kittilä mine. Most recently he
served as Senior Vice President, Operations – Canada & Europe since 2020.
Eric Kallio, EVP, Exploration
Strategy & Growth: Eric is a geologist with over 30 years
of experience working in exploration, mine planning, scoping and
feasibility studies in Canada and
abroad and will lend this experience to promoting the growth of
Agnico Eagle. Eric has been instrumental in the discovery or
advancement of several successful projects, including the Dome Mine
Open Pit in Timmins ON, the Detour Gold Open Pit near Cochrane ON,
the Island Gold project near Wawa,
ON and discoveries by Lake Shore Gold in the Timmins gold camp. Most recently he
served as Senior Vice President, Exploration for Kirkland Lake
Gold.
Guy Gosselin, EVP,
Exploration: Guy will continue to lead the global exploration
teams, including Australia,
Canada, Europe, Mexico, South
America and USA. Guy is a Professional Engineer with
over 25 years of experience and has been instrumental in leading
the Agnico Eagle exploration team through the acquisition, growth
and advancement of projects, particularly in Nunavut with the discovery of Amaruq and in
the Abitibi. He joined Agnico Eagle in 2000 and most recently
served as Senior Vice President, Exploration since 2019.
Carol Plummer, EVP,
Operational Excellence: Carol will provide leadership and
foster collaboration in the areas of Health, Safety and Security,
Environmental Management & Critical Infrastructure and
Operational Sustainability (Budget/LOM) in order to help drive
efficiencies and ensure operational and cultural alignment
throughout the Company's regional and functional teams. Carol
is a Professional Engineer who joined Agnico Eagle in 2004 and has
held several key positions, including Senior Vice-President
Sustainability, Vice-President Corporate Development,
Vice-President Project Development USA & Latin
America and General Manager at the Lapa, Kittilä and LaRonde
mines. Since 2021 she served as Senior Vice President
Sustainability, People & Culture.
Chris Vollmershausen, EVP
Legal, General Counsel & Corporate Secretary: Chris will
continue to lead the legal team at Agnico Eagle and provide
strategic legal advice to the Company and the board of directors.
Chris is a corporate securities lawyer and has held a number of
executive roles at Agnico Eagle including Vice President,
Legal. He joined Agnico Eagle in 2014 and most recently
served as Senior Vice President, Legal, General Counsel &
Corporate Secretary since 2020.
New Agnico Eagle Three-Year Guidance
The new Agnico Eagle is announcing its inaugural detailed
production and cost guidance for 2022 and mine by mine production
forecasts for 2022 through 2024. Gold production for 2022 is
forecast to be approximately 3.2 to 3.4 million ounces. The
2022 gold production forecast includes the full year of production
at the Detour, Macassa and Fosterville mines.
The 2022 production guidance incorporates the impact of the
Omicron variant of COVID-19 across the Company's operations
year-to-date. The Company continues to have rigorous
protocols at all the operating regions and supports a global
vaccination program. However, operational activities could
still be affected given the uncertainty surrounding the evolution
of the virus and the measures taken by the Company, governments and
others to contain the spread and impact of the virus.
Gold production for 2023 and 2024 is expected to be in a similar
range to 2022 at approximately 3.2 to 3.4 million ounces of
gold. The production forecast for 2024 does not include
potential production upside from pipeline projects such as the AK
deposit, the Odyssey internal zones and the Akasaba project at the
Goldex mine. Collectively, if approved and developed, these
projects could potentially add up to 100,000 ounces of gold to the
2024 forecast.
Total cash costs per ounce in 2022 are expected to be between
$725 and $775 using an assumed C$/US$ foreign exchange
rate of 1.25. Although the Company expects some variability
in operating costs from 2022 to 2024, average total cash costs per
ounce are expected to remain relatively stable over that period
(assuming a C$/US$ foreign exchange rate of 1.25). The
Company remains focused on reducing costs through productivity
improvements and innovation initiatives at all of its operations.
AISC per ounce in 2022 are expected to be between $1,000 and $1,050. Although the Company expects some
variability in operating costs from 2022 to 2024, the average AISC
per ounce are expected to remain stable over that period (assuming
a C$/US$ foreign exchange rate of 1.25).
Forecast total cash costs per ounce and AISC per ounce for 2022
to 2024 do not include any potential synergies resulting from the
Merger. As the expected Merger synergies, set out below, are
realized both cost metrics are expected to decline over the same
period.
Following the completion of the Merger, the Company now has six
cornerstone production assets (the LaRonde and Meadowbank Complexes
and the Detour, Fosterville,
Meliadine and Canadian Malartic mines) each with annual production
rates in 2022 expected to be in excess of 300,000 ounces of
gold.
Solid Three-Year Guidance with Stable Costs
Mine by mine production and cost guidance for 2022, and mine by
mine gold production forecasts for 2023 and 2024 are set out
below. Opportunities to further optimize and improve gold
production and unit cost forecasts from 2022 through 2024 are being
evaluated.
Estimated Payable
Gold Production (2022-2024)
|
|
|
|
2022*
|
|
2023
|
|
2024
|
|
|
|
Forecast
|
|
Forecast
|
|
Forecast
|
|
|
|
Range
|
|
Range
|
|
Range
|
LaRonde
Complex
|
|
|
370,000
|
390,000
|
|
375,000
|
390,000
|
|
375,000
|
390,000
|
Canadian Malartic
(50%)
|
|
|
315,000
|
325,000
|
|
325,000
|
335,000
|
|
335,000
|
345,000
|
Goldex mine
|
|
|
130,000
|
140,000
|
|
130,000
|
140,000
|
|
120,000
|
130,000
|
Detour Lake
mine
|
|
|
700,000
|
730,000
|
|
700,000
|
730,000
|
|
700,000
|
730,000
|
Macassa mine
|
|
|
170,000
|
190,000
|
|
200,000
|
220,000
|
|
330,000
|
350,000
|
Meliadine
mine
|
|
|
360,000
|
380,000
|
|
370,000
|
390,000
|
|
370,000
|
390,000
|
Meadowbank
Complex
|
|
|
335,000
|
360,000
|
|
340,000
|
370,000
|
|
410,000
|
450,000
|
Fosterville
mine
|
|
|
390,000
|
410,000
|
|
360,000
|
390,000
|
|
230,000
|
265,000
|
Kittila mine
|
|
|
235,000
|
250,000
|
|
245,000
|
255,000
|
|
235,000
|
245,000
|
Pinos Altos
mine
|
|
|
125,000
|
130,000
|
|
125,000
|
130,000
|
|
125,000
|
130,000
|
La India
mine
|
|
|
80,000
|
85,000
|
|
65,000
|
75,000
|
|
20,000
|
25,000
|
Total Gold
Production
|
|
|
3,210,000
|
3,390,000
|
|
3,235,000
|
3,425,000
|
|
3,250,000
|
3,450,000
|
|
* Forecast includes the
full year of production at the Detour, Macassa and Fosterville
mines.
|
Total cash costs per
ounce on a by-product basis of gold produced ($ per
ounce):
|
|
|
|
|
|
2022*
|
|
|
Forecast
(mid-point)
|
LaRonde
Complex
|
|
$
|
641
|
Canadian Malartic mine
(50%)
|
|
791
|
Goldex mine
|
|
776
|
Detour Lake
mine
|
|
645
|
Macassa mine
|
|
718
|
Meliadine
mine
|
|
852
|
Meadowbank
Complex
|
|
1,186
|
Fosterville
mine
|
|
385
|
Kittila mine
|
|
833
|
Pinos Altos
mine
|
|
900
|
La India
mine
|
|
1,003
|
Total
|
|
$
|
749
|
*Forecast total cash costs per ounce do not include any
potential synergies resulting from the Merger and is based on the
mid-point of 2022 production guidance
Currency and commodity price assumptions used for 2022 cost
estimates and sensitivities are set out in the table below:
Currency and
commodity price assumptions used for 2022 cost estimates and
sensitivities
|
|
|
|
|
|
|
|
2022 commodity and
currency price
assumptions
|
|
Approximate impact
on total cash costs per
ounce basis
|
|
|
|
|
|
|
|
C$/US$
|
|
1.25
|
|
5% change in
C$/US$
|
|
$25
|
US$/EUR
|
|
1.20
|
|
5% change in
US$/EUR
|
|
$3
|
MXP/US$
|
|
20.00
|
|
5% change in
MXP/US$
|
|
$1
|
A$/US$
|
|
1.32
|
|
5% change in
A$/US$
|
|
$2
|
Diesel
(C$/ltr)
|
|
$
|
0.90
|
|
10% change in diesel
price
|
|
$6
|
Silver
($/oz)
|
|
$
|
22.00
|
|
$1 / oz change in
silver price
|
|
<$1
|
Copper
($/lb)
|
|
$
|
4.00
|
|
10% change in copper
price
|
|
<$1
|
Zinc ($/lb)
|
|
$
|
1.40
|
|
10% change in zinc
price
|
|
<$1
|
Depreciation Guidance
Agnico Eagle expects 2022 depreciation and amortization expense
to be between $1.37 and $1.47 billion.
For financial reporting purposes, the Merger is determined to be
a business combination with Agnico Eagle identified as the
acquirer. As a result, the purchase consideration is
allocated to the identifiable assets and liabilities of Kirkland
Lake Gold based on their fair values as of February 8, 2022 (the "Purchase Price
Allocation"). The estimated 2022 depreciation and
amortization expense has considered a preliminary fair value
allocation to the Kirkland Lake Gold assets, however, the estimate
is subject to change based on the finalization of the Purchase
Price Allocation, which will take place within the twelve months
following the acquisition date.
General & Administrative Cost Guidance
Agnico Eagle expects 2022 general and administrative expenses to
be between $165 and $175 million, excluding share-based
compensation. In 2022, share based compensation expense is
expected to be between $50 and
$60 million (including non-cash stock
option expense of between $10 and
$15 million).
The 2022 forecast for general and administrative expenses
exclude corporate synergies set out in the "Optimization and
Synergies Expected to Generate Significant Value" section of this
news release.
Other Cost Guidance
In 2022, Agnico Eagle expects additional expenses of
approximately $31 million related to
site maintenance costs at Hope Bay and other expenses of
approximately $13 million related to
sustainable development activities in the Abitibi region of
Quebec and COVID-19 costs.
Tax Guidance
For 2022, the Company expects its effective tax rates to be:
Canada – 40% to 45%
Mexico – 35% to 40%
Australia – 30%
Finland – 20%
The Company's overall effective tax rate is expected to be
approximately 40% for the full year 2022.
Updated Three Year Operational Guidance Plan
Since the prior three-year gold production guidance issued on
February 11, 2021 ("Previous
Guidance") for 2022 and 2023, there have been several operating
developments resulting in changes to the overall three-year
production profile at several mines. Descriptions of these
operating developments, based on the mid-point of gold production
guidance, are set out below.
ABITIBI REGION, QUEBEC
LaRonde Complex
Forecast
|
2021
|
2022
|
2023
|
2024
|
|
Previous Guidance
(oz)
|
375,000
|
382,500
|
405,000
|
n.a.
|
|
Current Guidance
(oz)
|
379,734
(actual)
|
380,000
|
382,500
|
382,500
|
|
|
|
|
|
|
|
LaRonde Complex
Forecast 2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Silver
(g/t)
|
Silver
Mill Recovery
(%)
|
|
2,981
|
4.17
|
95.1%
|
10.26
|
75.5%
|
|
Production and
Minesite Costs per
Tonne (C$)8
|
Zinc
(%)
|
Zinc
Mill Recovery
(%)
|
Copper
(%)
|
Copper
Mill Recovery
(%)
|
|
C$120.68
|
0.40%
|
71.1%
|
0.13%
|
77.3%
|
__________
|
8 Minesite
costs per tonne is a non-GAAP measure that does not have a
standardized meaning under the financial reporting framework used
to prepare the Company's financial statements. For a
reconciliation to production costs see "Reconciliation of Non-GAAP
Performance Measures" below. See also "Note Regarding Certain
Measures of Performance".
|
At the LaRonde Complex, the gold production guidance is in line
with Previous Guidance for 2022 and lower in 2023. The
expected reduction in gold production in 2023 is primarily due to
an adjustment to the mining rate and mining sequence at the LaRonde
mine. The optimized mining plan is expected to help secure
the excavation of the high grade stopes in the East and West
mines. The lower grade stopes located in the junction area
between the East and West mines are now expected to be mined in the
later part of the mine life.
At the LaRonde Zone 5 ("LZ5") mine, the successful
implementation of automated mining techniques has resulted in a
consistent improvement in productivity in 2021 and the forecast
production rate for 2022 is expected to be 3,200 tonnes per day
("tpd").
Canadian Malartic
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
350,000
|
330,000
|
350,000
|
n.a.
|
Current Guidance
(oz)
|
357,392
(actual)
|
320,000
|
330,000
|
340,000
|
|
|
|
|
|
Canadian Malartic
Forecast 2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (C$)
|
|
9,487
|
1.17
|
89.7%
|
C$34.09
|
At Canadian Malartic (in which Agnico Eagle has 50% ownership),
the lower production guidance in 2022 and 2023 as compared to
Previous Guidance is primarily due to a reduction in the mill
throughput to 51,500 tpd (100% basis). This reduction is
being carried out to optimize the processing plan to improve the
production profile during the transition to the underground Odyssey
project. This optimization is also expected to result in
enhanced financial metrics and cash flow. The mill throughput
is forecast to return to full capacity of approximately 60,000 tpd
(on a 100% basis) in the second half of 2024 as the underground
mining operations ramp up.
In 2022, approximately one-third of the production is expected
to be sourced from the Canadian Malartic pit and two-thirds from
the Barnat pit.
The Odyssey project is forecast to gradually start production in
the first half of 2023, contributing approximately 23,000 ounces of
gold in 2023 and 38,000 ounces of gold in 2024 (50% basis).
Goldex
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
133,000
|
140,000
|
142,500
|
n.a.
|
Current Guidance
(oz)
|
134,053
(actual)
|
135,000
|
135,000
|
125,000
|
|
|
|
|
|
Goldex Forecast
2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (C$)
|
|
2,815
|
1.66
|
89.9%
|
C$46.52
|
At Goldex, the production guidance is slightly lower than
Previous Guidance for 2022 and 2023. The production guidance
in 2022 and 2023 reflects a more conservative mining rate in the
South zone of 800 tpd, consistent mining rates from the Deep 1 area
and the anticipated increase in the Rail-Veyor capacity to 7,500
tpd.
ABITIBI REGION, ONTARIO
Detour Lake
forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)*
|
700,000
|
700,000
|
700,000
|
n.a.
|
Current Guidance
(oz)
|
712,824
(actual)
|
715,000
|
715,000
|
715,000
|
|
|
|
|
|
Detour Lake Forecast
2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (C$)
|
|
25,772
|
0.94
|
91.8%
|
C$22.37
|
*For the Detour Lake
mine, Previous Guidance refers to the prior three-year gold
production guidance issued by Kirkland Lake Gold on December 10,
2020.
|
At Detour, the production guidance is higher in 2022 and 2023,
when compared to Previous Guidance, reflecting the continuous
optimization of the operation.
Macassa
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)*
|
237,500
|
310,000
|
412,500
|
n.a.
|
Current Guidance
(oz)
|
210,192
(actual)
|
180,000
|
210,000
|
340,000
|
|
|
|
|
|
Macassa Forecast
2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (C$)
|
|
233
|
24.4
|
98.4%
|
C$692.80
|
*For the Macassa mine,
Previous Guidance refers to the prior three-year gold production
guidance issued by Kirkland Lake Gold on December 10,
2020.
|
The lower production guidance for the Macassa mine in 2022 and
2023, when compared to Previous Guidance, reflects a slower ramp up
of mining activities than anticipated. This slower ramp up is
partly due to a re-evaluation of the development and mining
sequence, compounded by the ongoing impact of reduced equipment
availability caused by increased maintenance requirements, poor
battery performance and delays in new battery delivery.
NUNAVUT
Meliadine
Forecast
|
2021*
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
370,000
|
390,000
|
385,000
|
n.a.
|
Current Guidance
(oz)
|
391,687
(actual)
|
370,000
|
380,000
|
380,000
|
|
|
|
|
|
Meliadine Forecast
2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (C$)
|
|
1,709
|
6.98
|
96.5%
|
C$231.11
|
* Includes 2021
pre-commercial gold production of 24,057 ounces from the Tiriganiaq
open pit
|
At Meliadine, the production guidance is lower than the Previous
Guidance in 2022 and in 2023. The lower production guidance
in 2022 incorporates the impact of COVID-19 related reductions in
mining activities in January 2022. In 2023, the production
guidance reflects minor adjustments to the mining sequence.
Meadowbank Complex
Forecast
|
2021*
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
370,000
|
400,000
|
415,000
|
n.a.
|
Current Guidance
(oz)
|
324,808
(actual)
|
347,500
|
355,000
|
430,000
|
|
|
|
|
|
Meadowbank Complex
Forecast 2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (C$)
|
|
3,702
|
3.14
|
93.0%
|
C$139.72
|
* Includes 2021
pre-commercial gold production of 1,956 ounces from the Amaruq
underground project
|
At the Meadowbank Complex, the production guidance is lower than
Previous Guidance for 2022 and 2023. The lower production
guidance in 2022 incorporates the COVID-19 related suspension of
mining and milling activities that commenced in December 2021 and gradual ramp-up into February
2022. In addition, the Company has revised the open pit
mining sequence and mining rate in 2022 and 2023 to 35 million
tonnes per year, in line with current performance. As a
result, the ore processed and gold grades in 2022 and 2023 are
slightly lower than previously anticipated. The Company now
forecasts gold production above 400,000 ounces per year starting in
2024.
Amaruq underground is forecast to contribute approximately
30,000 ounces of gold in 2022 and 100,000 ounces of gold in 2023
and in 2024.
Every year, the caribou migration is factored into the Company's
production plan. This migration can affect the ability to
move materials on the road between Amaruq and Meadowbank and
between Meadowbank and Baker Lake. Wildlife management is an
important priority and the Company is working with Nunavut stakeholders to optimize solutions to
safeguard wildlife and minimize production disruptions.
AUSTRALIA
Fosterville
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)*
|
412,500
|
362,500
|
362,500
|
n.a.
|
Current Guidance
(oz)
|
509,601
(actual)
|
400,000
|
375,000
|
247,500
|
|
|
|
|
|
Fosterville Forecast
2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (A$)
|
|
768
|
16.66
|
97.3%
|
A$264.86
|
*For the Fosterville
mine, Previous Guidance refers to the prior three-year gold
production guidance issued by Kirkland Lake Gold on December 10,
2020.
|
The improved production forecast for the Fosterville mine in 2022 and 2023 reflects
higher confidence in the mine plan and successful mineral reserve
replacement in 2021.
FINLAND
Kittila
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
250,000
|
257,500
|
265,000
|
n.a.
|
Current Guidance
(oz)
|
239,240
(actual)
|
242,500
|
250,000
|
240,000
|
|
|
|
|
|
Kittila Forecast
2022
|
Ore
Milled ('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill Recovery
(%)
|
Production
and Minesite
Costs per
Tonne (EUR)
|
|
1,984
|
4.35
|
87.4%
|
€ 84.85
|
At Kittila, the lower production guidance for 2022 and 2023
compared to Previous Guidance is primarily due to revisions to the
grade profile related to changes to the mining sequence which
resulted from the delayed shaft commissioning. Commissioning
of the production hoist is now expected in late 2022 or early
2023.
MEXICO
Pinos Altos
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
122,500
|
125,000
|
120,000
|
n.a.
|
Current Guidance
(oz)
|
126,932
(actual)
|
127,500
|
127,500
|
127,500
|
|
|
|
|
|
Pinos Altos Forecast
2022
|
Total
Ore ('000
tonnes)
|
Gold
(g/t)
|
Gold
Recovery (%)
|
|
|
1,918
|
2.21
|
93.6%
|
|
|
Production and
Minesite Costs
per Tonne
|
Silver
(g/t)
|
Silver
Mill Recovery
(%)
|
|
|
$75.52
|
48.01
|
46.2%
|
|
At Pinos Altos, the production
guidance is higher than the Previous Guidance in 2022 and 2023
largely due to an expected increase in throughput levels from the
contribution of the Sinter and Reyna de
Plata satellite deposits and higher gold grades at Pinos
Altos. The Company will continue the development of the
Cubiro satellite deposit and prepare the operation for a production
ramp-up in the second half of 2023.
La India
Forecast
|
2021
|
2022
|
2023
|
2024
|
Previous Guidance
(oz)
|
77,000
|
75,000
|
42,500
|
n.a.
|
Current Guidance
(oz)
|
63,529
(actual)
|
82,500
|
70,000
|
22,500
|
|
|
|
|
|
La India Forecast
2022
|
Total
Ore ('000
tonnes)
|
Gold
(g/t)
|
Gold
Recovery (%)
|
|
|
7,348
|
0.52
|
67.2%
|
|
|
Production and
Minesite Costs
per Tonne
|
Silver
(g/t)
|
Silver Recovery (%)
|
|
|
$11.52
|
2.57
|
14.3%
|
|
At La India, the production guidance in 2022 and 2023 is higher
than the Previous Guidance. In 2022, the La India mine is
expected to benefit from the delayed recovery of the gold ounces
stacked on the heap leach in the second quarter of 2021. This
delay was due to the shortage of water, which affected heap leach
kinetics. In 2023, the higher gold production results from an
optimization of the final pit bottom and an increase in mineral
reserves at the El Realito
deposit.
Total Capital Expenditure Forecast
Estimated capital expenditures for 2022 total approximately
$1.4 billion, which includes
approximately $703.3 million of
sustaining capital at the Company's operating mines and
$709.6 million on growth projects, as
set out in the table below. Additionally, approximately
$11.3 million is expected to be spent
on sustaining capitalized exploration and $119.4 million on non-sustaining capitalized
exploration. For additional detail on capitalized
exploration, refer to the "2022 Exploration Program and Budget"
section of this news release.
Estimated 2022
Capital Expenditures
|
(In thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining
Capital
|
|
Development
Capital
|
|
|
|
|
|
LaRonde
Complex
|
|
$
|
83,800
|
|
$
|
65,000
|
Canadian Malartic mine
(50%)
|
|
76,900
|
|
103,700
|
Goldex mine
|
|
27,500
|
|
17,200
|
Detour Lake
mine
|
|
175,500
|
|
178,300
|
Macassa mine
|
|
43,300
|
|
105,000
|
Meliadine
mine
|
|
52,800
|
|
85,300
|
Meadowbank
Complex
|
|
69,700
|
|
51,200
|
Fosterville
mine
|
|
71,100
|
|
16,100
|
Kittila mine
|
|
50,100
|
|
54,000
|
Pinos Altos
mine
|
|
27,200
|
|
28,100
|
La India
mine
|
|
6,200
|
|
5,700
|
Other
|
|
19,200
|
|
—
|
Total Capital
Expenditures
|
|
$
|
703,300
|
|
$
|
709,600
|
Using the Company's 2022 budget assumptions, annual sustaining
capital expenditures for 2023 and in future years are expected to
remain stable at approximately $675
to $725 million. Based on the
extensive list of high-quality development growth opportunities,
which are discussed below, and depending on prevailing gold prices
and the timing of project approvals, the Company expects that total
development capital in future years could be approximately
$625 to $675
million. Overall, annual capital expenditures are
expected to be approximately $1.3 to
$1.4 billion through 2024.
2022 Exploration Program and Budget – Continuation of
Aggressive Exploration Program at Detour Lake and Odyssey
Underground Project to Advance Two Significant Future Contributors
to Mineral Reserve Growth. Large Program to Extend Life of
Mine at LaRonde, Macassa, Meliadine, Amaruq, Fosterville and Kittila while Advancing
Priority Pipeline Projects Hope Bay and Santa Gertrudis
As a result of continued exploration success at several
projects, the Company has budgeted $324
million for exploration expenditures in 2022, comprised of
$193 million for expensed exploration
and $131 million for capitalized
exploration.
The objective is to build on recent exploration success and
identify additional mineral resources and convert mineral resources
into mineral reserves. This is part of the strategy to
develop the full potential of existing operations and key projects
in the Company's pipeline.
The priorities of the 2022 exploration program are the expansion
of the Detour Lake pit, the underground Odyssey project at Canadian
Malartic and campaigns at several assets: LaRonde Complex,
Meliadine, Macassa, Fosterville,
Kittila and Hope Bay.
At the LaRonde Complex, the Company expects to spend
approximately $12.0 million for
continued development of exploration drifts from the LaRonde 3
infrastructure towards the west below the LZ5 mine workings and for
43,500 metres of drilling into multiples targets including Zone 5,
Zone 6, Zone 20N and the recently discovered Zone 20N Zn South with
the aim of adding new mineral reserves and mineral resources to
extend the mine life of the LaRonde Complex into the 2030s.
At the Goldex mine, the Company expects to spend approximately
$5.6 million for 45,300 metres of
drilling comprised of 39,300 metres of conversion drilling and
6,000 metres of exploration drilling, focused on the M Zone, West
area, South Zone and at depth in the Deep 3 Zone.
At the Canadian Malartic mine, the Company expects to spend
approximately $11.9 million (50%
basis) for 136,800 metres (100% basis) of exploration and
conversion drilling focused on aggressive infill drilling at the
East Gouldie deposit to improve confidence in the mineral resource,
to continue the conversion of inferred mineral resources to
indicated mineral resources and to refine the geological
model. With ramp development under way as part of the Odyssey
Mine project, the Company will be able to continue underground
conversion drilling from the ramp in 2022. In addition, the
Company is planning to spend approximately $4.1 million (50% basis) on 21,900 metres (100%
basis) of exploration drilling to expand mineralization towards the
east in the East Gouldie horizon and the new Titan zone at depth on
the Rand property. Some drilling is also planned on the
nearby East Amphi property to extend the Nessie and Kraken
zones.
At the Detour Lake mine, the Company expects to spend
approximately $35.8 million for
194,000 metres of capitalized drilling to expand mineral resources
at depth and to the west, and $10.1
million for 40,000 metres for exploration drilling to
continue to investigate the Sunday Lake deformation zone to the
east and west of the current pit's mineral resources.
At the Macassa mine, the Company expects to spend approximately
$20.3 million for 99,900 metres in
capitalized drilling and to develop exploration drifts to replace
mineral reserves and mineral resources depletion. Another
$18.9 million is budgeted for
exploration, including $10.4 million
for 89,700 metres of exploration drilling to continue to
investigate extensions of key targets at South Mine Complex (East,
West, Upper and Lower), Main Break, '04 Break, Amalgamated Break
and near-surface. The remaining $8.6
million of exploration will be spent developing a 1.3
kilometre exploration ramp from the Near-Surface area in order to
access, develop and infill with underground drilling the
mineralization on the AK property.
For regional exploration in Ontario, the Company expects to spend a total
of $19.1 million for 53,900 metres of
drilling, including: $2.6 million for
12,200 metres for surface exploration drilling at the AK property
for mineral resource conversion; $7.9
million for 15,800 metres of drilling at the Upper Beaver
and Upper Canada deposits and
other targets in the Kirkland Lake
camp; and $8.7 million for the
Taylor, Hislop, Holloway
West and other properties in the Kirkland Lake and Timmins areas that are joint ventures with
Melkior Resources, Mistango River Resources, OreFinders Resources
and Wallbridge Mining.
At the Meliadine mine, the Company expects to spend
approximately $8.4 million for 27,300
metres of capitalized drilling with a focus on conversion drilling
at the Tiriganiaq, Normeg, Wesmeg and Pump deposits, as well as
exploration drilling of the Tiriganiaq, Wesmeg, Pump and F-Zone
deposits, which are all open at depth.
At the Meadowbank Complex, the Company expects to spend
approximately $10.4 million for
42,800 metres of drilling comprised of 20,200 metres of conversion
drilling and 22,700 metres of exploration drilling focused on
testing open-pit extensions of mineralization and the potential for
further underground deposits at the Amaruq satellite
operation. The Company expects to spend $9.1 million for 19,000 metres of drilling to
investigate for new, near-surface satellite deposits close to the
road and infrastructure around the Meadowbank/Amaruq area.
Any new open-pittable discoveries have the potential to extend the
life of mine at Amaruq in conjunction with the extensions of
higher-grade underground mineralization at Amaruq.
At the Hope Bay mine, the Company expects to complete 80,000
metres of drilling in a $32.2 million
exploration program that will include $17.9
million to develop new exploration drifts and 29,000 metres
of underground exploration drilling at the Doris deposit to explore
the extensions of mineralization and to add mineral reserves and
mineral resources in the BTD zone to the north and in the BCO, BCN
and West Valley zones below the dike. The Company expects to
spend $14.3 million for 51,000 metres
of surface drilling into exploration targets around the Doris Mine,
between the Doris and Madrid
deposits, and around the Madrid
deposit with the objective of adding mineral reserves and mineral
resources to the project.
At the Fosterville mine, the
Company expects to spend approximately $34.6
million for 121,400 metres of capitalized drilling and the
development of exploration drifts to replace mineral reserve
depletion and to add mineral resources in the Cygnet, Lower Phoenix
and Robbin's Hill areas. Another $19.7
million is budgeted for 62,000 metres of underground and
surface exploration with the aim of discovering additional
high-grade mineralization at Fosterville. An additional
$2.9 million is budgeted for 20,000
metres of regional exploration drilling on properties surrounding
the Fosterville mine and
$4.2 million is budgeted for 9,800
metres of drilling in the Northern Territories mostly to test new
targets at Pine Creek, Maud Creek,
Mt Paqualin and Union Reefs.
At the Kittila mine, the Company expects to spend approximately
$12.4 million for 69,600 metres of
drilling focused on the Main zone in the Roura and Rimpi areas as
well as the Sisar zone. The drilling includes 46,800 metres
of capitalized conversion drilling at the mine as described above
and 22,800 metres of expensed exploration drilling. The
expensed drilling will be focused on targets beyond the current
mineral reserve area, especially from 1,500 to 2,000 metres depth
and at shallower depths in the area north of the mine.
At the Pinos Altos mine, the
Company expects to spend approximately $3.5
million for 17,400 metres of expensed exploration
drilling. The two main objectives are to continue to infill
and expand the mineral resource at Cubiro, and to test the depth
potential of the Cerro Colorado,
Santo Nino and Reyna East zones and other targets on the
property. Another $800,000 is
budgeted for 5,000 metres of capitalized drilling.
At the La India mine, the Company expects to spend approximately
$2.6 million for 13,000 metres of
drilling to investigate for the extensions of oxide targets near
the Main Zone and to grow and infill the Chipriona polymetallic
sulphide deposit.
Project development and exploration costs for Santa Gertrudis in 2022 are estimated at
approximately $19.0 million.
Regional exploration includes $13.2
million for approximately 35,500 metres of drilling focused
on expanding the mineral resources and testing extensions of
high-grade structures such as the Amelia deposit and exploring new
targets, and $3.5 million for
approximately 16,500 metres of drilling will primarily be for
infilling open pit deposits. Another $2.3 million are expected to be spent on internal
studies and metallurgical work.
2022 Global Exploration Program and Corporate Development
Budget
|
Expensed
Exploration
|
|
Capitalized
Exploration
|
|
|
|
|
Sustaining
|
Non-
Sustaining
|
|
|
$
million
|
thousand
metres
|
|
$
million
|
$
million
|
thousand
metres
|
Quebec
|
|
|
|
|
|
|
LaRonde
Complex
|
$
|
10.0
|
27.7
|
|
$
|
2.0
|
$
|
—
|
15.8
|
Goldex
|
0.6
|
6.0
|
|
1.3
|
3.7
|
39.3
|
Quebec
Regional
|
4.0
|
12.0
|
|
—
|
—
|
—
|
Canadian Malartic
Corporation*
|
4.1
|
21.9
|
|
—
|
11.9
|
136.8
|
|
|
|
|
|
|
|
Ontario
|
|
|
|
|
|
|
Detour Lake
|
10.1
|
40.0
|
|
—
|
35.8
|
194.0
|
Macassa
|
18.9
|
89.7
|
|
0.5
|
19.8
|
99.9
|
Ontario regional and
projects
|
19.1
|
53.9
|
|
—
|
—
|
—
|
|
|
|
|
|
|
|
Nunavut
|
|
|
|
|
|
|
Meliadine
|
—
|
—
|
|
1.4
|
7.1
|
27.3
|
Meadowbank
Complex
|
5.3
|
22.7
|
|
0.3
|
4.8
|
20.2
|
Hope Bay
|
32.2
|
80.0
|
|
—
|
—
|
—
|
Nunavut
Regional
|
9.1
|
19.0
|
|
—
|
—
|
—
|
|
|
|
|
|
|
|
Australia
|
|
|
|
|
|
|
Fosterville
|
22.7
|
82.0
|
|
0.3
|
34.3
|
121.4
|
Northern
Territories
|
4.2
|
9.8
|
|
—
|
—
|
—
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
Kittila
|
5.8
|
22.8
|
|
4.6
|
2.0
|
46.8
|
Europe
Regional
|
5.6
|
12.0
|
|
—
|
—
|
—
|
|
|
|
|
|
|
|
Mexico
|
|
|
|
|
|
|
Pinos Altos
|
3.5
|
17.4
|
|
0.8
|
—
|
5.0
|
La India
|
2.6
|
13.0
|
|
0.1
|
—
|
—
|
Santa
Gertrudis
|
16.7
|
51.5
|
|
—
|
—
|
—
|
Mexico
Regional
|
7.6
|
—
|
|
—
|
—
|
—
|
|
|
|
|
|
|
|
USA
|
6.7
|
3.0
|
|
—
|
—
|
—
|
G&A, Joint
Ventures, Other
|
4.2
|
23.1
|
|
—
|
—
|
—
|
Total
Exploration
|
$
|
193.0
|
607.5
|
|
$
|
11.3
|
$
|
119.4
|
706.5
|
Hope Bay Other
Expenditures
|
14.3
|
|
|
|
|
|
Other Project
Studies
|
22.8
|
|
|
—
|
—
|
|
Total Corporate
Development and Technical Services
|
28.4
|
|
|
—
|
—
|
|
Total Exploration
and Project Expenses
|
$
|
258.5
|
|
|
$
|
11.3
|
$
|
119.4
|
|
|
*For the Canadian
Malartic mine and projects, in which Agnico Eagle holds a 50%
indirect interest, the expenses in this table represent 50% of the
total expenses, but the drill lengths represent 100% of
drilling.
|
Future Value Drivers
Optimization and Synergies Expected to Generate Significant
Value
Based on preliminary work done as part of the due diligence
review of the Merger, the Company previously disclosed that
synergies and optimization benefits related to the Merger were
estimated to total $800 million
before tax over the next five years and $2
billion over the next ten years. While still
preliminary, further work has identified synergy
and optimization opportunities that have the potential to
exceed these previous estimates.
Given the work and complexity involved in attaining these
synergies, and given the volatile and inflationary price
environment, these synergies have not been reflected in the
production and cost guidance provided in this news release.
However, in 2022, the Company expects to
realize Merger-related corporate and operational synergies of
approximately $40 million to
$60 million, of which $12 million have already been realized at the
time of this news release. Additional detail on the sources
of these benefits is set out below.
Corporate Synergies
The Company originally estimated a ramp up to approximately
$35 million per year in
Merger-related corporate synergies (approximately $145 million over five years, $320 million over 10 years). Work since the
Merger has confirmed this initial estimate, including:
- Lower financing costs due to recognition of the Company's
strengthened credit profile. The Company has already realized
recurring savings of approximately $10
million annually through the optimization and re-structuring
of its credit facilities and other treasury related items
- Projected savings in corporate payroll ($8 to $12 million)
due to early retirements, elimination of overlapping roles, and not
filling certain positions
- Lower combined information technology costs due to elimination
of duplicate infrastructure and licensing ($2 to $4
million)
- Other general and administrative savings ($10 to $12 million)
on costs such as insurance, office space and general consultants.
The Company has already realized an immediate one-time saving of
$2 million on insurance costs
Actual corporate synergies for 2022 are forecast to be
approximately $15-25 million.
The Company believes there is opportunity to exceed the original
$35 million annual synergy target in
2024 and beyond.
Operational Synergies
The Company originally estimated potential operational synergies
in excess of $130 million per year
($440 million over five years,
$1.1 billion over 10 years).
Work is underway to refine and confirm these potential
synergies. While realization of these synergies will be a
multi-year endeavor, additional work since the Merger has
identified opportunities to potentially exceed this initial
estimate as set out below..
Procurement
The Company is currently reviewing procurement practices and
evaluating the possibility that consolidating vendors would result
in significant annual savings. The Company is targeting
approximately $35-$50 million per year in savings, with more modest
savings in 2022, and increased savings realized in later
years. The initial efforts will prioritize opportunities
related to the Canadian operations due to their close proximity and
will focus on savings related to warehousing and logistics, mobile
equipment/parts, tires, explosives, mill reagents and consumables,
cement, hydrocarbons and services.
Other Operational Synergies
The Company has identified a number of other opportunities for
operational synergies, including:
- Implementing process improvements across the business resulting
in higher recoveries, increased availability or lower operating
costs
- Opening off-site operations and monitoring centres to increase
operating hours and productivity
- Optimizing exploration programs and execution
- Leveraging Macassa's experience in equipment electrification at
other operations to reduce operating costs and the Company's carbon
footprint
- Extending the Company's automation expertise to the Macassa and
Fosterville operations in order to
drive productivity and efficiency
- Lowering consulting costs by consolidating and streamlining the
technical services group
- Centralizing drillhole databases and modelling work to create
exploration drilling, modelling and data management synergies
- Streamlining and combining assay laboratories in the
Quebec and Ontario regions to increase efficiency and
lower costs
- Lowering treatment fees for Detour, Macassa and Fosterville
The Company estimates the operational synergies and other cost
reduction measures have the potential to reduce production costs by
up to $10 per ounce in 2022 and with
the potential reduction of up to $30-$40 per ounce
in later years.
Strategic Optimization
The Company is currently in the process of reviewing strategic
opportunities to reduce current and future expenditures as part of
its project pipeline (original estimate of up to $240 million over five years, $590 million over 10 years). The Company
has identified two priority opportunities below.
Mining the AK deposit from Macassa infrastructure
The Company is evaluating the possibility of using the existing
Macassa Near Surface Zone infrastructure to access the AK
deposit. Mining of the AK deposit through Macassa's
infrastructure would be similar to the mining activity at LZ5 (at
the LaRonde Complex). Preliminary evaluations indicate that
mining activities could begin as early as 2024 and production could
average approximately 40,000 ounces per year, at total cash cost
per ounce of $650-$750. This production is expected to have a
positive impact on cash flow generation at Macassa.
Permitting work is ongoing and the Company expects to make a
production decision later in 2022. Additional detail is
provided later in this news release.
Upper Beaver project review
The Company is currently reviewing the concept of leveraging the
Macassa infrastructure or the Holt Complex infrastructure and the
shaft sinking experience at Macassa to enhance project returns at
Upper Beaver. The sinking of the Macassa #4 Shaft is now
complete. The Macassa internal team and shaft sinking
equipment could be used at Upper Beaver and could result in
potential savings of tens of millions of dollars.
Consolidation of Mining Assets and Infrastructure in the
Kirkland Lake Gold Camp
Following the completion of the Merger, Agnico Eagle controls
1,917 mineral titles covering approximately 29,469 hectares (295
square kilometres) in the prolific Kirkland Lake gold camp, which has
historically produced more than 25 million ounces of gold to the
end of 2021.
The large property measures approximately 35 kilometres
long by 17 kilometres wide, encompassing the Town of Kirkland Lake, an active gold mining
town of 8,000 inhabitants, with ready transportation, power and
infrastructure.
Following the Merger, the Company now owns the producing Macassa
mine and mill and the Holt mining complex near Matheson, Ontario (approximately 60 kilometres
northeast of Kirkland Lake).
The Holt mill, which is currently on care and maintenance, has a
capacity of 3,000 tpd and a fully permitted tailings storage
facility. The Company plans to evaluate the potential to
integrate a number of satellite deposits with the existing
infrastructure in the region. The significant opportunities
(100% owned) are set out below:
- AK deposit
- Upper Beaver deposit
- Other regional deposits – Upper
Canada, Anoki-McBean and Bidgood
- Opportunities along the Main Break where the Company now
controls six past producing mines
AK deposit could provide near-term incremental ore feed to the
Macassa mill
The AK deposit consists of lode-style gold mineralization hosted
by altered and pyritic Timiskaming volcanic and sedimentary
rocks. The deposit is hosted in one of many
northeast-trending structures that lie between the Kirkland Lake
Main Break and the Larder Lake-Cadillac Deformation Zone
("LCDZ"). The gold mineralization is of two types:
gold-bearing quartz and quartz breccia veins, and gold within
pyrite-altered host rocks.
The AK deposit is located very close to the Macassa property
boundary and lies within a few hundred metres of the existing
Macassa underground workings. At year-end 2021, the AK
deposit was estimated to contain 265,000 ounces of indicated
mineral resources (1.3 million tonnes grading 6.51 g/t gold) and
406,000 ounces of inferred mineral resources (2.4 million tonnes
grading 5.32 g/t gold). Because of the proximity to the
property boundary, the deformation zone hosting the AK deposit,
which extends laterally and at depth, it has not been drill tested
extensively. This zone, along with the eastern trend of the
Amalgamated Break, remain interesting targets for new
discoveries.
In 2022, the Company plans to develop a 1.3 kilometre
exploration ramp from the existing Macassa Near-Surface zones
("NSUR"), which is expected to cost approximately $8.6 million. The exploration ramp is
designed to provide access to carry out infill drilling and collect
a bulk sample from the higher grade portions of the deposit.
Mining of the AK deposit is expected to be similar to the mining
activity at LZ5 (at the LaRonde Complex). An initial
evaluation estimates that production from the AK deposit could
begin as early as 2024 and ramp up over a seven-year period.
Production is forecast to average approximately 40,000 ounces per
year with average cash total costs per ounce of approximately
$650-$750.
The forecast parameters surrounding the Company's proposed AK
deposit were based, in part, on the results of internal
evaluations. These evaluations include inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the forecast production amounts set out in this news release
will be realized.
Upper Beaver – Potential to be a long-life gold-copper
producer
The Upper Beaver deposit is located approximately 27 kilometres
from the Macassa mine, and 60 kilometres from the Holt mining
complex. Upper Beaver is a gold-copper deposit that is mainly
hosted in the Upper Beaver alkalic intrusive complex and the
surrounding basalts it intruded, and is associated with
disseminated pyrite and chalcopyrite, and magnetite-sulphide
veining associated with strong magmatic-hydrothermal
alteration. The mineralization occurs as elongated tabular
bodies that strike northeast, dip steeply northwest and plunge 65
degrees to the northeast. The mineralization has been defined
along a 400-metre strike length from surface to a depth of 2,000
metres and it remains open at depth.
In 2021 at Upper Beaver, 163 holes totaling 58,691 metres were
drilled in both the shallow conversion program between surface and
500 metres depth and the conversion and expansion drilling at
depths between 800 and 1,500 metres that targeted the Porphyry,
Footwall and Gap zones. The conversion and expansion drilling
continued to intersect significant high-grade mineralization,
further expanding the Footwall and Porphyry zones at depth.
Recent results include a highlight intercept grading 8.7 g/t gold
and 0.81% copper over 18.2 metres at 1,435 metres depth in the East
Porphyry Zone.
The 2021 exploration results are expected to have a positive
impact on the next mineral reserve and mineral resource estimate to
be included in an internal technical evaluation of the Upper Beaver
deposit expected to be completed in 2022. The Company
believes that with ongoing exploration, there is strong potential
to delineate additional mineral resources at depth and proximate to
the known deposit areas. The mineral reserves and mineral
resources presented below are unchanged from December 31, 2020.
As of December 31, 2021, Upper
Beaver had approximately 1.4 million ounces of gold and 20,000
tonnes of copper in underground probable mineral reserves (8.0
million tonnes grading 5.43 g/t gold and 0.25% copper); 403,000
ounces of gold and 5,100 tonnes of copper in underground indicated
mineral resources (3.6 million tonnes grading 3.45 g/t and 0.14%
copper); and 1.4 million ounces of gold and 17,300 tonnes of copper
in underground inferred mineral resources (8.7 million tonnes
grading 5.07 g/t and 0.20% copper). For a detailed discussion of
mineral reserves and mineral resources see "Detailed Mineral
Reserve and Mineral Resource Data (as at December 31, 2021)" in this news release.
The Company is evaluating different scenarios on how to best
mine the deposit that starts from surface and remains open below
1.8 kilometres. In the 1930s, the Upper Beaver deposit was
mined from surface to 400 metres depth, exploiting narrow
high-grade zones containing gold and copper. The Company
believes that Upper Beaver has the potential to be a low-cost mine
with annual production in the range of 150,000 ounces to 200,000
ounces of gold and moderate capital outlays.
Following completion of the Merger, the Company also has more
processing options available including building a standalone mill
and tailings facility at site or using an existing mill and
tailings facility at either the Macassa mine or the Holt mining
complex.
The above options will be reviewed in the Upper Beaver internal
technical evaluation which is expected to be completed later this
year.
Other regional deposits could support a centralized milling
complex
The Upper Canada deposit lies
approximately 6 km southwest of the Upper Beaver property, and 1.6
km north of the main LCDZ, within a 300 to 400-m-wide strongly
altered deformation corridor. Host rocks are primarily
volcanic (trachyte) tuffs and sediments that have been intruded by
syenite bodies. Gold mineralization is associated with
intensely altered shear zones with fine pyrite and ancillary
sulphide mineralization. En-echelon higher-grade lenses are present
within a broader envelope of lower grade mineralization.
Upper Canada was in production
from the 1930s to the 1970s and produced 1.5 million ounces.
Drilling by various owners over the last few decades has defined a
wider zone around the old narrow workings hosting the current
mineral resources.
At year-end 2021, the Upper
Canada deposit was estimated to contain 104,000 ounces of
gold in open pit indicated mineral resources (2.0 million tonnes
grading 1.62 g/t) and 618,000 ounces of gold in underground
indicated mineral resources (8.4 million tonnes grading 2.28
g/t). In addition, there are 1.8 million ounces of gold in
underground inferred mineral resources (8.7 million tonnes grading
3.21 g/t).
The combined indicated mineral resources at the property's
Anoki-McBean deposit have been estimated at 1.9 million tonnes
grading 5.33 g/t gold (containing 320,000 ounces of gold) as of
December 31, 2021, and there are
additional inferred mineral resources, all at underground
depths.
For additional details on the Upper
Canada, Anoki-McBean mineral resources see "Detailed Mineral
Reserve and Mineral Resource Data (as at December 31, 2021)" in this news release.
Work is ongoing to evaluate the potential to develop the
regional deposits as potential ore feed to existing milling
infrastructure in the region.
Opportunities along the past producing Main Break
Agnico Eagle now controls six of the original producing mines
along the Main Break in the Kirkland
Lake mining camp. The underground workings of these
mines are all interconnected and tie into production areas at the
Macassa mine.
The gold mineralization at Macassa and the other past producing
mines is found along breaks or faults, in veins as quartz filled
fractures, as breccias and as sulphide rich (pyrite) zones.
There are multiple mineralized breaks, named the '04, '05, No.6,
Kirkland Lake Main and the Kirkland
Lake North and South branches. The breaks strike 60° to the
northeast and dip 70-80° south in keeping with the Timiskaming
trend. The trend of the gold mineralization in the
Kirkland Lake camp conforms to the
60° westerly plunge of the syenite intrusives.
The Company plans to continue to work with the historical data
to assess the potential of longer-term exploration targets along
the Main Break. The near-term focus will be to assess the
mineral potential to the east and along the Main Break below the
5800 Level at Macassa and east onto the Kirkland Minerals and
Teck-Hughes properties. Any significant discoveries on these
properties could provide incremental sources of ore for the Macassa
mill.
Detour Lake – Ongoing Exploration Success Expected to Drive
Future Mineral Reserve Growth and Provide Additional Opportunities
to Enhance Production
The Detour Lake open pit mine is located in northeastern
Ontario, approximately 300
kilometres northeast of Timmins
and 185 kilometres by road northeast of Cochrane, within the northernmost portion of
the Abitibi Greenstone Belt. The Detour Lake operation has a
mine life of approximately 22 years with expected average gold
production of 659,000 ounces per year.
Detour Lake was acquired by Kirkland Lake Gold on January 31, 2020, through its acquisition of
Detour Gold Corporation. At the time of the acquisition,
Kirkland Lake Gold identified significant opportunities to generate
value through growth in mineral resources and mineral reserves, as
well as through initiatives aimed at expanding and optimizing
mining and milling operations and tailings impoundment
facilities.
On March 30, 2021, Kirkland Lake
Gold released an updated technical report (the "2021 Detour Lake
Technical Report") for the Detour Lake mine. The report
estimated gold production of 680,000 to 720,000 ounces from 2021 to
2024, increasing to approximately 800,000 ounces in 2025, with AISC
per ounce averaging $775 from 2021 to
2025 and $821 over the 22-year life
of mine plan. The 2021 Detour Lake Technical Report did not
include any of the exploration results from the period after Detour
Lake was acquired by Kirkland Lake Gold, nor did it include the
full impact of business improvement initiatives undertaken
following the acquisition.
A highlight of the program to create value at Detour Lake has
been the exploration success achieved since the acquisition in
2020. A key exploration focus was the Saddle Zone, which is
located between the existing Main Pit and the planned West
Pit. The Saddle Zone had previously been under explored and
contained no mineral reserves and only limited mineral
resources. Other key targets included the extension at depth
of both the Main Pit and planned West Pit as well as areas west of
the existing West Pit mineral reserves, which was also an area that
had seen limited previous drilling.
Exploration results in 2020 and 2021 demonstrate the existence
of a broad and continuous corridor of mineralization extending over
4.0 kilometres from the Main Pit through the Saddle Zone to the
planned West Pit location to a depth of at least 800 metres below
surface with the system remaining open.
Exploration results have also expanded the mineralized corridor
to at least 400 metres west of the planned West Pit, with the
corridor remaining open. In addition, drill results have
identified broad zones of higher-grade mineralization below the
current pit shells for the Main Pit and West Pit, indicating the
potential to add both open-pit and, potentially underground,
mineral reserves and mineral resources. In 2021, Kirkland
Lake Gold carried out a $41.2 million
exploration program at Detour Lake.
On September 2, 2021, Kirkland
Lake Gold released an updated mineral resource estimate (the
"Mid-Year 2021 Mineral Resource Estimate"), which incorporated
drilling results at Detour Lake up to July
26, 2021. The new estimate included a 10.1 million
ounce increase in measured and indicated open-pit mineral resources
to 14.7 million ounces of gold (572.0 million tonnes at 0.80
g/t). The 14.7 million ounces of open-pit measured and
indicated mineral resources consists of 12.2 million ounces of gold
(386.5 million tonnes at 0.98 g/t) established using a 0.50 g/t
cut-off grade and 2.5 million ounces of gold (185.5 million tonnes
at 0.42 g/t) of lower-grade mineral resources established using
cut-off grades between 0.35 – 0.50 g/t.
Under previous mine plans, the low-grade mineral resources
represented material that was expected to be mined as waste,
whereas the Mid-Year 2021 Mineral Resource Estimate anticipated
they would be mined, stockpiled and processed in later years
strategically as mill availability increases.
Mineral reserves and mineral resources as at December 31, 2021 did not include the impact of
the Mid-Year 2021 Mineral Resource Estimate, nor any of the
drilling results conducted after the Mid-Year 2021 Mineral Resource
Estimate. At December 31, 2021,
mineral reserves at Detour Lake were estimated at 15.0 million
ounces of gold (573.3 million tonnes at 0.82 g/t), representing
mineral reserves as at December 31,
2020 less the impact of production depletion during
2021. The 15.0 million ounces of mineral reserves at
December 31, 2021 includes 13.1
million ounces of gold (426.8 million tonnes at 0.96 g/t)
established using a 0.50 g/t cut-off grade and 1.9 million ounces
of gold (146.5 million tonnes at 0.41 g/t) using a cut-off grade of
less than 0.50 g/t. Open pit measured and indicated mineral
resources were estimated at 14.7 million ounces of gold (572.0
million tonnes at 0.80 g/t) and inferred mineral resources were
estimated at 1.2 million ounces of gold (52.4 million tonnes at
0.71 g/t).
Production at Detour Lake in 2021 totaled a record 712,824
ounces of gold, a 38% increase from the 516,757 ounces of gold for
the 11 months in 2020 after Detour Lake was acquired by Kirkland
Lake Gold. The 712,824 ounces of production was above the
mid-point of the original full-year 2021 guidance of 680,000 to
720,000 ounces and was in line with improved guidance of 700,000 to
720,000 ounces (announced on November
3, 2021). The strong production results in full-year
2021 were supported by record quarterly production in the fourth
quarter of 2021 of 210,980 ounces of gold, driven by record mill
throughput of 6,303,150 tonnes and a record grade of 1.14 g/t
gold.
Outlook
On February 23, 2022, three-year
production guidance for Detour Lake was issued including 700,000 to
730,000 ounces of gold per year in 2022 to 2024. The Mid-Year
2021 Mineral Resource Estimate, combined with a planned update in
mineral resources, and ongoing business improvement initiatives
will be incorporated into a new technical report and life-of-mine
plan expected to be filed in the second quarter of 2022. This
report is expected to show growth in mineral reserves and provide
additional opportunities to enhance the future production at the
Detour Lake mine.
Macassa Mine – Completion of the #4 Shaft Project in 2022
Expected to Provide Numerous Benefits Leading to Ongoing Production
Increases Through 2024 and Beyond
The 100% owned Macassa mine is located in the historic gold
mining region of Kirkland Lake,
Ontario and remains one of the highest-grade gold mines in
the world. Production at Macassa first commenced in 1933,
with the mine being operated continuously until 1999, when
operations were suspended due to low gold prices. Production
resumed in 2002 with the discovery of the South Mine Complex
("SMC") in 2005. The SMC is a high-grade zone that resulted
in significant grade improvement at the mine and an increase in
production levels above historic averages. Macassa was among
the first mines globally to introduce battery-electric vehicles
("BEVs"), with the first BEVs introduced in 2012. Currently,
approximately 90% of the mine production fleet is BEVs, which
results in low greenhouse gas emissions.
Since the discovery of the SMC, Macassa has continued to achieve
significant exploration success, both in expanding the SMC and
identifying new areas of high-grade mineralization along both the
Main Break and Amalgamated Break, the two main faults extending
through the Kirkland Lake
camp.
In January 2018, Kirkland Lake
Gold announced plans to sink a new 6,400-foot shaft with a capacity
of 4,000 tpd (ore and waste) (the "#4 Shaft" project) for the
Macassa mine. The decision to sink a new shaft reflected the
mine's track record for replacing mineral reserves, continued
favourable results from exploration drilling and the advancement of
mining operations in the SMC to the east, and further to depth,
away from the existing #3 Shaft. In addition, the new shaft
will increase ventilation resulting in improved working conditions
through reduced heat and humidity, de-risk the operation with less
reliance on the existing #3 shaft, which is timber lined, support
enhanced exploration capabilities and result in production growth
by increasing hoisting capacity from the mine to utilize excess
capacity in the Macassa mill.
Once the #4 Shaft is completed, the ore hoisting capacity at the
mine is expected to effectively double, to approximately 2,000
tpd. Ventilation in the deep portion of the Macassa mine will
increase to approximately 750,000 cubic feet per minute ("cfm")
from approximately 300,000 cfm currently. In addition, the #4
Shaft is more centrally located within the past-producing
Kirkland Lake camp than the
existing #3 Shaft and will support future exploration development
along the Main and Amalgamated breaks.
The surface infrastructure phase of the #4 Shaft project was
completed in July 2019, with sinking
commencing in early August of that year. The sinking phase of
the project advanced ahead of schedule and was completed on
January 12, 2022, over a year earlier
than initially anticipated. At the time of this news release,
construction of the loading pocket and other related
infrastructure, as well as development to connect the new shaft to
current mining operations, were advancing as planned.
Completion of these activities are expected in late 2022, ahead of
the original schedule and under budget.
In 2021, exploration expenditures totaled $38.2 million, with drilling continuing to extend
the SMC in multiple directions. In addition, exploration work
has also identified new zones of high-grade mineralization along
the Amalgamated Break. In 2020, a corridor of high-grade
mineralization extending at least 700 metres along strike and 300
metres high was identified along the historic Main Break below the
adjacent Kirkland Minerals property. The Company plans to
follow-up on this high-potential target once underground
exploration development into the area is completed. Mineral
reserves at December 31, 2021, were
estimated at 1.86 million ounces of gold (3.55 million tonnes at
16.3 g/t).
Production at Macassa in 2021 totaled 210,192 ounces of gold, a
15% increase from 183,037 ounces in 2020. Production for the
year was below the initial guidance of 220,000 to 255,000 ounces,
however it achieved the top end of revised guidance released on
November 3, 2021, as part of Kirkland
Lake Gold's third quarter 2021 results. The reduction in
production guidance on November 3,
2021, largely reflected the ongoing impact of reduced
equipment availability caused by increased maintenance
requirements, poor battery performance and delays in new battery
delivery, with the result being lower production, reduced operating
development metres and a lower average grade resulting largely from
changes to mine sequencing.
Outlook
On February 23, 2022, the Company
issued three-year production guidance for Macassa of 170,000 to
190,000 ounces in 2022, 200,000 to 220,000 ounces in 2023 and
330,000 to 350,000 ounces in 2024. Production levels could
potentially increase once the full benefit of the #4 Shaft is
realized.
The updated production guidance is the result of a review of the
Macassa operation that focused on:
- Assessing opportunities to incorporate the AK Zone into the
mine plan following the Merger
- Addressing ongoing performance and supply chain issues related
to batteries and the battery-powered haul fleet
- Evaluating future plans for the near-surface ramp and
mineralized zones, such as AK
- Reviewing the development program and the mining sequence in
several areas of the underground mine
Fosterville Mine – Exploration Drilling Continues to Target
Mineral Reserve Replacement and Growth as well as the Potential
Discovery of New High-Grade Zones
The Fosterville mine is located
approximately 20 kilometres northeast of Bendigo in Victoria, Australia. Kirkland Lake Gold
acquired Fosterville as part of a
business combination with Newmarket Gold Inc. in November
2016. At the time of the transaction, Fosterville had annual gold production of
approximately 150,000 ounces with mineral reserves of 388,000
ounces of gold (1.7 million tonnes at 7.3 g/t gold).
A key consideration in the decision to acquire Fosterville was strong exploration
potential. Exploration had demonstrated a trend towards
improving grades within the host sulphide mineralization as it
progressed down-plunge, and it identified a new form of
mineralization; high-grade quartz veins containing significant
amounts of visible gold starting at a depth of approximately 800
metres from surface.
In 2017 to 2018, considerable exploration success was achieved,
both growing mineral reserves and increasing average grades,
ultimately leading to the establishment of the ultra-high-grade
Swan Zone as one of the world's highest grade gold zones. In
2019 to 2020, the mine carried out extensive exploration programs,
resulting in the continued discovery of high-grade quartz veins
with visible gold mineralization at multiple targets (albeit at
reduced grades than had been intersected in the Swan Zone).
Among the priority targets at Fosterville were the Lower Phoenix System
further down-plunge from the Swan Zone, the adjacent Harrier gold
system to the south, the Cygnet structure, approximately 125 metres
in the footwall to the Swan Zone, and Robbin's Hill, a new gold
system identified approximately 4.0 kilometres north of the
existing Fosterville mine.
In 2021, Kirkland Lake Gold carried out an $80.5 million exploration program at Fosterville, including development of a twin
exploration drive from the Fosterville mine to Robbin's Hill. Key
exploration results in 2021 included the intersection of high-grade
quartz with visible gold 500 metres further down-plunge from the
Swan Zone in Lower Phoenix, in a series of splay structures
sub-parallel to Swan Zone at Cygnet, and 1,000 metres down-plunge
from the deepest mineral reserves at Robbin's Hill. At
December 31, 2021, mineral reserves
at Fosterville were estimated at
1.86 million ounces of gold (5.6 million tonnes at 10.3 g/t), while
Robbin's Hill was estimated to contain probable mineral reserves of
approximately 157,000 ounces of gold (1.05 million tonnes at 4.7
g/t).
Production at Fosterville in
2021 totaled 509,601 ounces of gold, over 100,000 ounces higher
than the low end of the original production guidance for 2021 of
400,000 – 425,000 ounces (and in line with revised guidance of
approximately 500,000 ounces announced on November 3, 2021). Higher than planned gold
production in 2021 mainly reflected a consistent trend of grade
outperformance during the year.
Outlook
On February 23, 2022, the Company
issued three-year production guidance for Fosterville of 390,000 to 410,000 ounces in
2022, 360,000 to 390,000 ounces in 2023 and 230,000 to 265,000
ounces in 2024. Both the 2022 and 2023 levels are improved
from previous guidance in December 2020. The reduction in
expected production in 2024 compared to 2021 level reflects the
transition to lower grades due to the re-emergence of the host
sulphide mineralization as the dominant mineralization at the
bottom of the Swan Zone. The reduction also reflects plans to
advance lower-grade areas of the mine to extend the production life
of the Swan Zone while exploration drilling continues to target
mineral reserve replacement and growth as well as the potential
discovery of new high-grade zones.
Based on current exploration results, the Company's long-term
goal for Fosterville is to
establish the mine as a long-life asset through the successful
replacement of mineral reserves. The Company believes there
is potential to discover additional high-grade zones that could
potentially support higher production levels and improvements in
unit costs.
Odyssey Project – Underground Development and Surface
Construction Activities Remain on Schedule and on Budget
Agnico Eagle and Yamana Gold Inc. ("Yamana") each have a 50%
interest in the Canadian Malartic GP
(the "Partnership") which owns and operates the Canadian Malartic
mine and the Odyssey project in northwestern Quebec. In
February 2021, the Partnership
approved the construction of the underground Odyssey project,
located east of the current mining operation, upon completion of an
internal preliminary economic assessment. The results of this
study were incorporated into the technical report for the Canadian
Malartic operation titled "NI 43-101 Technical Report, Canadian
Malartic Mine, Québec, Canada"
(the "CM Report"). The CM Report was filed on SEDAR on
March 25, 2021.
On a 100% basis, the preliminary economic assessment includes
410,000 ounces of gold in indicated mineral resources (6.2 million
tonnes grading 2.07 g/t gold) and 6.9 million ounces of gold in
inferred mineral resources (75.9 million tonnes grading 2.82 g/t
gold) that represent approximately half of the Odyssey project's
year-end 2020 total of 859,000 ounces of gold in the indicated
category (13.3 million tonnes grading 2.0 g/t gold) and 13.6
million ounces of gold in the inferred category (177.5 million
tonnes grading 2.4 g/t gold). The development of this project
combines the exploitation of four main mining zones by ramp and
shaft: Odyssey North, Odyssey South, East
Malartic and East Gouldie.
Based on current mineral reserves, production from the Canadian
Malartic and Barnat open pits extends to 2029. Run-of–mine
ore from the pit is expected to decrease starting in 2022, as the
ore production from the underground starts gradually in 2023 to
reach a rate of 3,500 tpd in 2024. The underground is
expected to reach full production of approximately 19,000 tpd by
2031.
Capital expenditures from 2021 to 2028 are expected to total
approximately $1.34 billion (on a
100% basis), which includes $1,144
million in initial capital expenditures and $191 million in additional development capital
expenditures. The gradual transition from open pit to
underground mining allows for capital expenditures to be spread
over eight years. In addition, proceeds from the early
production, which is expected to begin in 2023, will significantly
reduce the external cash requirements for the construction of the
project
From 2023 to 2028, gold production is forecast to be
approximately 932,000 ounces at total cash costs of approximately
$800 per ounce (all numbers on a 100%
basis). Average annual payable production is approximately
545,400 ounces of gold from 2029 to 2039, with total cash costs per
ounce of approximately $630.
Sustaining capital expenditures are expected to gradually decline
from 2029 to 2039, with an expected average of approximately
$56 million per year.
The forecast parameters surrounding the Company's proposed
operations at the Odyssey project were based on the CM Report,
which is preliminary in nature and includes inferred mineral
resources that are too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as mineral reserves and there is no certainty that the
forecast production amounts will be realized. The basis for
the CM Report and the qualifications and assumptions made by the
qualified person who undertook the CM Report are set out in this
news release under the caption "Scientific and Technical
Information".
Recent activities
Underground development in 2021 was in line with expectations
with 1,487 linear metres of ramp completed and 2,081 equivalent
metres of lateral development achieved. An exploration drift
has been installed on Level 16 and ramp access is now down to level
26, which is approximately half the depth extent of the Odyssey
South deposit. Development is expected to ramp up from the
current level of 425 metres per month to approximately 860 metres
per month in the second half of 2022. To facilitate the
increased development rate, the Partnership will be adding its own
development crews and additional underground equipment (both diesel
and electric) in the second quarter of 2022.
Production via the ramp is expected to begin gradually at
Odyssey South in the first half of 2023, increasing to up to 3,500
tpd in 2024. Collaring of the shaft and installation of the
headframe was initiated in 2021 and shaft sinking activities are
expected to begin in the fourth quarter of 2022. The shaft
will have an estimated depth of 1,800 metres and the first loading
station is expected to be commissioned in 2027 with modest
production from East Gouldie. The East Malartic shallow area and Odyssey North
are scheduled to enter into production in 2029 and 2030,
respectively.
Surface construction activities are progressing well with the
maintenance garage and warehouse erected and fully enclosed at the
end of 2021. The garage is expected to be fully functional by
April 2022. Work on the foundations for the first phase of
the paste plant started in February and the plant is expected to be
fully functional in the first quarter of 2023.
In 2021, twelve surface drills completed 123,680 metres of
drilling and two underground drills completed 9,722 metres of
drilling. The focus of the surface drilling was to infill and
extend the East Gouldie deposit and test the Odyssey internal
zones. The underground drilling was primarily focused on
conversion of mineral resources at the Odyssey South deposit.
At East Gouldie, the 2021 drilling campaign confirmed the
higher-grade nature of the core of the deposit and extended the
boundaries of the known mineralization. At year-end 2021
approximately 1.5 million ounces (11.9 million tonnes grading 3.88
g/t gold) had been converted to indicated mineral resources and an
additional 1.2 million ounces (10.7 million tonnes at 3.4 g/t gold)
had been added to inferred mineral resources. The above
mineral resources are on a 100% basis and have not been factored
into the current mine plan at Odyssey. Additional details on
the mineral resources are presented in the mineral reserve and
mineral resource section of this news release.
Recent underground drill results in the Odyssey Internal Zone
and the Jupiter Zone continue to demonstrate the potential to add
mineral resources in close proximity to the Odyssey North and
Odyssey South deposits. Drill hole MEV21-213R intersected
mineralization in this internal zone and returned three intercepts
yielding 3.2 g/t over 20.8 metres (core length) at 558 metres
depth, 3.9 g/t over 9.9 metres (core length) at 641 metres depth
and 3.9 g/t over 8.7 metres (core depth) at 1,095 metres depth.
Mineral resources from the Odyssey internal zones are not
currently included in the mine plan due to the increased geological
complexity of these zones. Additional infill drilling of
these zones from underground is planned to increase geological
understanding, which could present opportunities for additional
production during the underground ramp-up period. In
addition, mineral resources from the East
Malartic deposit at depth could represent another
opportunity for future inclusion in the mine plan, which could
extend the life of the underground project. Infill drilling
and additional engineering is required to evaluate the economic
potential of these mineral resources.
Fifteen drills are currently operating at site and approximately
137,000 metres of surface and underground drilling is planned to
infill and expand mineral resources in 2022. Additional
details on the 2022 drill program are presented in the exploration
program and budget section of this news release.
Opportunities to further enhance the Odyssey project will
continue to be evaluated as the development program advances,
including opportunities for increased conversion of mineral
resources and extension of the higher-grade East Goudie deposit,
which have the potential to significantly extend mine life and
improve the gold production profile in the transition from open pit
to underground mining. Infill drilling and additional
engineering is required to evaluate the economic potential of these
mineral resources.
The East Gouldie eastern extension continues to be investigated
up to the eastern boundary of the Canadian Malartic property and
onto the adjacent Rand Malartic where the zone was intersected more
than 1.2 km away from the current mineral resources limit.
Kittila Expansion Project – Shaft Sinking Expected to be
Completed in the Second Half of 2022
In February 2018, the Company
approved a major expansion project at Kittila to increase the mill
throughput by 25% to 2.0 million tonnes per annum ("mtpa"), and
sink a 1,040 metre deep production shaft. The mill expansion
was completed ahead of schedule and on budget in 2020 at a cost of
€29.5 million.
Work on the shaft commenced in 2019, and despite logistical
issues associated with COVID-19, work has been progressing
well. In the third quarter of 2021, the phase 1 of the new
main level (at 900 metres depth) was commissioned. Phase 1
included the underground lunch room, social facilities, supervisor
offices and parking area. In phase 2, the maintenance garage
and storage facilities will be commissioned.
At year-end 2021, total progress on the project was estimated at
90%. Progress included:
- Underground Rockline – 95%
- Shaft sinking – 69%
- Shaft bottom – 97%
- Headframe and hoists – 89%
Shaft sinking is expected to be completed in the second
half of 2022. Commissioning of the production hoist is
expected in late 2022 or early 2023. The service hoist is
expected to be completed in the first quarter of 2023. The
overall total expansion project costs are expected to remain within
the previously disclosed estimated range of €190 to €200 million,
however the global COVID-19 situation may have an effect both on
costs and schedule.
With the completion of the shaft, the Company anticipates a
potential decline in the minesite costs per tonne. As a
result of the mill expansion the cost per tonne was lowered by
approximately €4 in 2021 as compared to 2020. An additional
€3-4 per tonne savings is expected when the shaft is commissioned
due to lower ore handling costs. Production is expected to remain
stable at around 245,000 to 250,000 ounces per year. In the
first quarter of 2022, the Company expects to initiate permitting
activities to increase the mill throughput to 2.3 mtpa by
2026. With the increased milling rate, production could
potentially increase to approximately 275,000 to 300,000 ounces per
year in 2026.
The Kittila orebody remains open at depth and exploration in
2021 delineated a new target area below the proposed shaft bottom
with results of up to 5.5 g/t gold over 15.6 metres at 1,097 metres
depth. In addition, significant intersections were
encountered at depth in the Sisar area, including 6.3 g/t over 13.6
metres at 1,948 metres depth.
Pipeline Development Projects Provide Future Production
Optionality
Hope Bay – Current Focus is on Exploration Activities to
Develop an Optimal Production Strategy Around the Geological
Potential of the Land Package
On February 2, 2021, Agnico Eagle
acquired TMAC Resources Inc. ("TMAC"). As a result, the
Company acquired a 100% interest in the Hope Bay Property, which is
located in the Kitikmeot region of Nunavut, approximately 685 kilometres
northeast of Yellowknife and 125
kilometres southwest of Cambridge Bay. The land package
includes portions of the Hope Bay and Elu greenstone belts.
The 80-kilometre long Hope Bay greenstone belt hosts three gold
deposits (Doris, Madrid and
Boston) with historical mineral
reserves and mineral resources and over 90 regional exploration
targets. The Company believes that Hope Bay is similar in
scale and scope to its Meliadine property.
The property contains significant infrastructure including:
- Underground mine development at the Doris and Boston deposits
- A fully enclosed conventional processing plant (with a 2,000
tpd design capacity) and a tailings impoundment area at Doris
- A gravel airstrip at Doris capable of handling Boeing 737
aircraft and a secondary gravel airstrip at Boston
- A port with a laydown facility and fuel storage at Roberts
Bay
- An all-weather road network, a diesel power plant and an
office-accommodations complex
TMAC established strong relationships with Inuit residents and
organizations and the Government of Nunavut. An Inuit Impact
and Benefits Agreement is in place with the Kitikmeot Inuit
Association. Historically, a portion of the workforce has
come from Nunavut and TMAC was
also successful in sourcing workers from across Canada, with a large component coming from
Western Canadian labour markets.
Focus in 2021 was on Understanding the Existing Operation and
Ramping-up Exploration
Agnico Eagle took over the mining operations in February 2021 and production continued until the
end of September 2021. The primary objective in 2021 was to
operate the mine on a cash flow neutral basis, while developing a
better understanding of the mill circuit, underground conditions
and initial exploration potential at Doris and Madrid.
Mining operations ran continuously, while the mill was operated
using a three week on and a three week off rotation.
Following two COVID-19 outbreaks in September and October, the
Company stopped milling operations in the fourth quarter of 2021
and focused on site activities to support exploration efforts at
Doris and Madrid. Total gold production in 2021 was 56,229
ounces at a total cash cost per ounce of $1,063 and AISC per ounce of $1,750.
Exploration activities commenced in February 2021 and continued into the fourth
quarter of 2021, with more than 81,000 metres of drilling completed
on the Doris and Madrid
deposits. Results from the 2021 program indicated that both
deposits are open in multiple directions.
The Hope Bay project has seen significant historical exploration
activity, including more than one million metres of drilling with
approximately 90% of the drilling occurring on the established
deposits of Doris, Madrid and
Boston. As a result, the project hosts a large historical
mineral resource. These historical mineral resources have now
been reviewed and incorporated into the Company's 2021 year-end
mineral reserve and mineral resource statement.
At December 31, 2021, it was
estimated that Hope Bay contained probable mineral reserves of 3.33
million ounces (16.0 million tonnes at 6.50 g/t gold), indicated
mineral resources of 0.97 million ounces (8.8 million tonnes
grading 3.43 g/t gold), and inferred mineral resources of 1.68
million ounces (10.2 million tonnes at 5.09 g/t gold). For
additional details see "Detailed Mineral Reserve and Mineral
Resource Data (as at December 31,
2021)" in this news release.
Longer-term Focus will be on Exploration and Evaluation of
Larger Production Scenarios
In 2022 and 2023, production activities will remain suspended
and the primary focus at Hope Bay will be on exploration.
Some site activities will also be carried out to support the
exploration program and maintain the site for a potential future
restart of mining activities. The Hope Bay budget for 2022 is
approximately $80 million (of which
$77.8 million will be expensed) and
includes $32.2 million for
exploration (including approximately 951 metres of underground
development at Doris), $31.3 million
for site maintenance and $14.3
million for projects and studies (including approximately
$9 million for a new water treatment
plant).
Agnico Eagle believes that there is excellent potential to
increase mineral reserves and mineral resources at all of the
deposit areas and regionally. The Doris structure is open at
depth and could extend all the way to Madrid. Doris hosts a
number of zones with significant intersections encountered to date
including:
- BTD Extension – 9.0 g/t gold over 8.5 metres at 9 metres
depth
- DCN South – 4.4 g/t over 13.5 metres at 126 metres depth
- BCN – 17.1 g/t gold over 4.9 metres at 431 metres depth
- BCO – 6.7 g/t gold over 11.5 metres at 540 metres depth
At Madrid, all of the deposits
are open in all directions, and there is good potential to infill
the gaps between the known zones and add to mineral reserves and
mineral resources. In addition, the Madrid grades appear to be more
consistent. In 2022, drilling will focus on the Naartok,
Suluk, and Suluk South zones, and in 2023, drilling will move to
the Patch 7 and Wolverine zones. Significant intersections
encountered to date at Madrid
include:
- Naartok – 12.4 g/t gold over 4.2 metres at 637 metres
depth
- Suluk – 10.8 g/t gold over 9.3 metres at 685 metres depth
- Patch 7 – 14.5 g/t gold over 7.7 metres at 480 metres
depth
Exploration drilling below the mineral resources at Boston by TMAC in 2019 intersected high-grade
mineralization, including 24.5 g/t gold over 3.5 metres at
approximately 550 metres depth. Historical drilling by a
previous operator also intersected significant mineralization at
approximately 1,000 metres below surface (56.6 g/t gold over 8.8
metres). Continued drilling has the potential to add to the
Boston mineral resources.
Select drill results from the Doris, Madrid and Boston deposits
Deposit
|
Zone
|
Drill hole
|
From
(metres)
|
To (metres)
|
Depth of
mid-point
below
surface
(metres)
|
Core length
(metres)
|
Gold grade (g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
Boston
|
Boston
|
HB-S03-293
|
1,439.8
|
1,448.5
|
1,014
|
8.8
|
56.6
|
27.9
|
Boston
|
Boston
|
TMBBO-19-0001
|
454.6
|
458.1
|
427
|
3.5
|
24.5
|
24.5
|
Doris
|
BCN
|
08TDD623
|
461.6
|
466.5
|
431
|
4.9
|
22.5
|
17.1
|
Doris
|
DCN South
|
97TDD137
|
165.2
|
178.7
|
126
|
13.5
|
18.9
|
4.4
|
Doris
|
BCO
|
TM00125
|
574.0
|
585.5
|
540
|
11.5
|
11.9
|
6.7
|
Doris
|
BTD
Extension
|
TMRDC-19-0004
|
6.5
|
15.0
|
9
|
8.5
|
9.0
|
9.0
|
Madrid
|
Naartok
|
04PMD285
|
720.5
|
724.7
|
673
|
4.2
|
12.4
|
12.4
|
Madrid
|
Patch 7
|
TMMP7-19-0031
|
552.1
|
559.7
|
480
|
7.7
|
15.6
|
14.5
|
Madrid
|
Suluk
|
TMMSU-19-0023
|
772.7
|
782.0
|
685
|
9.3
|
10.8
|
10.8
|
The Company believes that there is also good exploration
potential elsewhere within the Hope Bay and Elu greenstone
belts. The majority of historical and recent exploration has
focused on defining and expanding the known deposits. To
date, over 90 regional exploration targets have been delineated, of
which 40 have been defined by surface mapping and sampling, and
geophysical and geochemical surveys.
Additional details on the drilling program at Hope Bay are set
out in the 2022 exploration budget section in this news
release. During the course of the year, the Company will be
evaluating exploration priorities and metres allocated on each
program and may adjust the allocation.
Internal evaluations are underway regarding the potential to
operate a 4,000 tpd mine at Hope Bay that could ultimately produce
250,000 to 300,000 ounces of gold per year at reasonable costs and
capital spending levels for at least 12 to 15 years. Current
studies are only evaluating production from the Doris and
Madrid deposits. Development
of the Boston deposit could
potentially enhance both the mine life and production profile.
The Company is also evaluating whether to retrofit the existing
Doris mill or build a new mill closer to the Madrid Deposit.
Key permits and approvals required to construct and mine the Doris,
Madrid and Boston deposits at up to 4,000 tpd are already
in place. However, any significant changes to the operational
plans may require amendments to the existing permits.
Hammond Reef – Production Optionality in a Higher Gold Price
Environment
The 100% owned Hammond Reef property in northwestern
Ontario covers approximately
32,070 hectares and is located approximately 260 kilometres west of
Thunder Bay. The property is accessible via secondary gravel
roads from the town of Atikokan,
which is located approximately 30 kilometres to the southwest.
The Hammond Reef deposit is a high tonnage, low grade gold
deposit that is primarily hosted in variably sheared and altered
granitoid rocks. Gold mineralization is typically associated
with fine grained pyrite mineralization that is often associated
with fractures, veinlets and veins filled with various combinations
of chlorite, calcite and quartz.
A positive internal technical study at Hammond Reef was
completed by the Company in 2020, which resulted in the declaration
of the first mineral reserves for the project on December 31, 2020. Open pit probable
mineral reserves are estimated at 3.32 million ounces of gold
(123.5 million tonnes grading 0.84 g/t gold). In addition,
the project contains 0.8 million ounces of measured mineral
resources (47.1 million tonnes grading 0.54 g/t gold) and 1.5
million ounces of indicated mineral resources (86.3 million tonnes
grading 0.53 g/t gold).
If approved for development in the future, mining activities are
expected to be carried out in two open pits and the plant will
utilize a conventional milling process with a design capacity of
30,000 tpd, and an average recovery of 89.1%. Tailings will
be contained in a conventional tailings storage facility.
Average annual gold production over the expected 12 year mine
life is forecast to be approximately 272,000 ounces at average
total cash costs per ounce of $748
and average AISC per ounce of $806. Initial capital costs are
approximately $1.0 billion.
Additional details on the project were included in the Company's
news release dated February 11,
2021. Resource sharing agreements with local First Nations
are in place and the project has received environmental approval
from both Federal and Provincial agencies. Studies will
continue in 2022 to optimize the project and further advance the
final permits required for construction and operation.
Gold Mineral Reserves Increase to Record Level of 25.7
Million Ounces in 2021, Driven by Hope Bay Acquisition and Positive
Outcomes at LaRonde
At December 31, 2021, the
Company's proven and probable mineral reserve estimate (net of 2021
gold production) totaled 337 million tonnes of ore grading 2.37 g/t
gold, containing approximately 25.7 million ounces of gold.
This is an increase of approximately 1.6 million ounces of gold
(7%) and a 10% increase in grade compared with the prior year.
The ore extracted from mines in 2021 contained 2.3 million
ounces of gold in-situ (32.4 million tonnes grading 2.18 g/t gold),
excluding production from Creston Mascota.
Highlights from the December 31,
2021 mineral reserve estimate include:
- At Hope Bay, a declaration of underground proven mineral
reserves of 15,000 ounces of gold (78,000 tonnes grading 6.03 g/t
gold) and probable mineral reserves of 3.3 million ounces of gold
(15.9 million tonnes grading 6.50 g/t gold) in the first mineral
reserve estimate since the Company acquired the project
- At the LaRonde Complex, successful conversion drilling more
than replaced 2021 production leading to a net growth of 30,000
ounces of gold after production depletion
The Company's December 31, 2021
gold mineral reserves are set out below, compared with the gold
mineral reserves a year earlier:
Gold Mineral
Reserves By Mine
or Deposit
|
Proven &
Probable Mineral
Reserve (000s gold ounces
|
Average Mineral
Reserve
Gold Grade (g/t)
|
2021
|
2020
|
Change
(000s oz gold)
|
2021
|
2020
|
Change
(g/t gold)
|
LaRonde mine
|
2,950
|
2,984
|
(34)
|
6.00
|
6.12
|
(0.12)
|
LaRonde Zone
5
|
852
|
788
|
64
|
2.07
|
2.08
|
(0.01)
|
LaRonde
Complex
|
3,802
|
3,772
|
30
|
4.21
|
4.36
|
(0.15)
|
Canadian Malartic
(50%)
|
1,767
|
2,214
|
(446)
|
1.09
|
1.12
|
(0.03)
|
Goldex
|
998
|
1,115
|
(117)
|
1.60
|
1.57
|
0.03
|
Akasaba West
|
147
|
147
|
—
|
0.84
|
0.85
|
—
|
Meadowbank
mine
|
3
|
3
|
—
|
2.34
|
2.34
|
—
|
Amaruq
|
2,593
|
2,888
|
(295)
|
3.92
|
3.87
|
0.05
|
Meadowbank
Complex
|
2,595
|
2,891
|
(295)
|
3.92
|
3.87
|
0.05
|
Meliadine
|
3,653
|
4,025
|
(371)
|
5.93
|
5.89
|
0.04
|
Hope Bay
|
3,334
|
—
|
3,334
|
6.50
|
—
|
—
|
Upper Beaver
|
1,395
|
1,395
|
—
|
5.43
|
5.43
|
—
|
Hammond Reef
|
3,323
|
3,323
|
—
|
0.84
|
0.84
|
—
|
Kittila
|
3,794
|
4,067
|
(273)
|
4.24
|
4.16
|
0.08
|
Pinos Altos
|
757
|
878
|
(121)
|
2.05
|
2.03
|
0.02
|
La India
|
157
|
256
|
(99)
|
0.67
|
0.66
|
—
|
Total Mineral
Reserves
|
25,724
|
24,082
|
1,642
|
2.37
|
2.15
|
0.22
|
Data set out in the table above and certain other data in this
news release have been rounded to the nearest thousand and
discrepancies in total amounts are due to rounding. For
detailed mineral reserves and mineral resources data see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31, 2021)" in the Appendix.
Mineral reserves are in-situ, taking into account all mining
recoveries and dilutions, before mill or heap-leach recoveries.
The economic parameters used to estimate mineral reserves and
mineral resources for all properties are set out in the table
below. The Company's economic parameters follow the method
accepted by the US Securities and Exchange Commission (the "SEC")
by setting the maximum price allowed to be the lesser of the
three–year moving average and current spot price, which is a common
industry standard.
Assumptions used for the December 31,
2021 mineral reserve and mineral resource estimates reported
by the Company
|
Metal
prices
|
Exchange
rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$
per
US$1.00
|
Mexican
peso per
US$1.00
|
US$ per
€1.00
|
Operations and
projects
|
$1,250
|
$18
|
$3.00
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hope Bay and
Hammond Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
The above metal price assumptions are below the three-year
historic gold and silver price averages (from January 1, 2019 to December 31, 2021) of approximately $1,654 per ounce and $20.63 per ounce, respectively. For longer
term projects that have not been approved for development, such as
the Hope Bay and Hammond Reef projects, the Company believes that
it is appropriate to use a gold price assumptions for mineral
reserve estimation that is more reflective of the current gold
price environment. The mineral resources are estimated using
75% of the mineral reserves cut-off grades, except for the Hammond
Reef and Hope Bay properties where 80% of the mineral reserves
cut-off grades are used.
The largest contribution to the increase in ounces of gold in
mineral reserves is related to the declaration at Hope Bay of
underground proven mineral reserves of 15,000 ounces of gold
(78,000 tonnes grading 6.03 g/t gold) and underground probable
mineral reserves of 3.3 million ounces of gold (15.9 million tonnes
grading 6.50 g/t gold) in the first mineral reserve estimate since
the Company acquired the project in February
2021 and launched an aggressive exploration drilling
campaign. Hope Bay was not included in Agnico Eagle's mineral
reserves and mineral resources estimate at year-end 2020.
At the LaRonde Complex, a combination of successful conversion
drilling and economic studies, more than offset the 399,000 ounces
of gold mined in situ, resulting in a net increase of approximately
30,000 ounces of gold in mineral reserves.
The Canadian Malartic mine saw a decrease of approximately
446,000 ounces of gold in proven and probable mineral reserves
(reflecting Agnico Eagle's 50% interest) as 396,000 ounces of gold
were mined in situ as the Canadian Malartic open pit
entered its final years of operation. Continued
exploration success at the Odyssey, East Gouldie and East Malartic underground deposits,
collectively known as the Odyssey Mine project, suggest that a
significant portion of the underground Odyssey Mine project may be
converted into mineral reserves in the future, to replace the ore
currently being mined at the adjacent Canadian Malartic and Barnat
pits.
At the Kittila mine, conversion drilling resulted in an increase
of approximately 189,000 ounces of gold in mineral reserves.
With the mining of a record 276,000 ounces of in-situ gold in 2021
as well as the decrease of 185,000 ounces of gold due to an
increase in the cut-off grade parameters and other adjustments, the
result was an overall decrease in mineral reserves of 273,000
ounces of gold at Kittila.
In addition to gold, Agnico Eagle's proven and probable mineral
reserves include by-product metals of approximately 28 million
ounces of silver at the Pinos
Altos, LaRonde and La India mines (34.2 million tonnes
grading an average of 25.34 g/t silver); 169,300 tonnes of zinc and
39,300 tonnes of copper at the LaRonde mine (15.3 million tonnes
grading 1.11% zinc and 0.26% copper); 25,900 tonnes of copper at
the Akasaba West project (5.4 million tonnes grading 0.48% copper);
and 20,000 tonnes of copper at the Upper Beaver project (8.0
million tonnes grading 0.25% copper).
At a gold price 10% higher than the assumed gold price (leaving
other assumptions unchanged), the Company estimates there would be
an approximate 7.7% increase in the gold contained in proven and
probable mineral reserves. Conversely, at a gold price 10%
lower than the assumed gold price (leaving other assumptions
unchanged), the Company estimates there would be an approximate
8.5% decrease in the gold contained in proven and probable mineral
reserves.
Measured and Indicated Mineral Resources Increase by 12% to
17.3 Million Ounces of Gold with the Declaration of Initial
Indicated Mineral Resources at East Gouldie, the Acquisition of
Hope Bay and Successful Conversion Drilling at Goldex and
Chipriona
At December 31, 2021, the
Company's measured and indicated mineral resources totaled 17.3
million ounces of gold (353 million tonnes grading 1.52 g/t gold),
comprised of 69 million tonnes grading 0.92 g/t gold of measured
mineral resources and 284 million tonnes grading 1.62 g/t gold in
indicated mineral resources. This represents a 12% (1.9
million ounce) increase in ounces of gold and a 9% increase in
grade (from 1.40 g/t gold) compared to a year earlier (see the
Company's news release dated February 11,
2021 for details regarding the Company's December 31, 2020 measured and indicated mineral
resource estimate).
Highlights from the December 31,
2021 measured and indicated mineral resource estimate
include:
- Declaration of initial underground indicated mineral resources
at the Odyssey project's East Gouldie deposit of 745,000 ounces of
gold (6.0 million tonnes grading 3.88 g/t gold) (reflecting Agnico
Eagle's 50% interest)
- Acquisition of Hope Bay and the subsequent incorporation of the
most recent drilling since the last estimate as well as the
Company's mineral resources classification criteria resulted in the
addition of indicated mineral resources totaling 967,000 ounces of
gold (8.8 million tonnes grading 3.43 g/t gold) at Hope Bay
- Successful conversion drilling at the open-pittable Chipriona
polymetallic sulphide deposit and the addition of the sulphide
mineral resources of the La India property resulted in an increase
in indicated mineral resources to 260,000 ounces of gold plus 18.0
million ounces of silver and 34,100 tonnes of zinc (6.4 million
tonnes grading 1.26 g/t gold, 87.3 g/t silver and 0.53% zinc) at
year-end 2021.
Inferred Mineral Resources Increase by 2% to 23.7 Million
Ounces, Due to Successful Exploration Drilling at East Gouldie and
Kittila and the Acquisition of Hope Bay
At December 31, 2021, the
Company's inferred mineral resources totaled 272 million tonnes
grading 2.72 g/t gold, or approximately 23.7 million ounces of
gold. This represents an approximate 2% (359,000 ounces)
increase in ounces of gold and a 6% increase in grade from the
December 2020 inferred mineral
resource estimate (see the Company's news release dated
February 11, 2021 for details
regarding the Company's December 2020
inferred mineral resource estimate).
Highlights from the December 31,
2021 inferred mineral resource estimate include:
- At East Gouldie (50% basis), despite 745,000 ounces of inferred
mineral resources being converted into indicated mineral resources,
the inferred mineral resources decreased by only 163,000 ounces due
to the addition of 582,000 ounces of new inferred mineral resources
following an aggressive exploration campaign
- Acquisition of Hope Bay in 2021 and exploration program added
inferred mineral resources of 1.7 million ounces of gold (10.2
million tonnes grading 5.09 g/t gold)
- Deepening of the Kittila mineral resources limit by
approximately 560 metres to 2,100 metres depth due to successful
exploration drilling in recent years added 0.7 million ounces of
gold (4.2 million tonnes grading 5.09 g/t gold). However, this gain
was offset by an increase in the cut-off grade parameters and the
application of optimized mineable shapes to report the inferred
mineral resources with internal dilution.
With this significant improvement to the reporting method at
Kittila, 96% of the Company's total ounces in underground inferred
mineral resource as of December 31,
2021 demonstrate spatial continuity of the mineralization
within a potentially mineable shape.
The year-end 2021 mineral resource estimate excludes mineral
resources at the Kylmäkangas deposit in Finland, which was sold by the Company in
June 2021, and had inferred mineral
resources of 250,000 ounces of gold (1.9 million tonnes grading
4.11 g/t gold) at year-end 2020.
For a detailed discussion of mineral reserves and mineral
resources see "Detailed Mineral Reserve and Mineral Resource Data
(as at December 31, 2021)" in the
Appendix.
|
Measured &
Indicated
Mineral Resources
|
Inferred Mineral
Resources
|
|
(000 oz
gold)
|
(000 oz
gold)
|
LaRonde mine
|
587
|
654
|
LaRonde Zone
5
|
660
|
1,227
|
LaRonde
Complex
|
1,248
|
1,881
|
Canadian Malartic
(50%)
|
95
|
72
|
Odyssey
(50%)
|
66
|
891
|
East Malartic
(50%)
|
364
|
2,639
|
East Gouldie
(50%)
|
745
|
3,046
|
Goldex
|
1,836
|
1,227
|
Akasaba West
|
86
|
—
|
Zulapa
|
—
|
39
|
Meadowbank
|
90
|
—
|
Amaruq
|
1,403
|
1,210
|
Meadowbank
Complex
|
1,494
|
1,210
|
Meliadine
|
2,247
|
2,293
|
Hope Bay
|
967
|
1,678
|
Hammond Reef
|
2,298
|
0
|
Upper Beaver (Kirkland
Lake)
|
403
|
1,416
|
Amalgamated Kirkland
(Kirkland Lake)
|
265
|
406
|
Anoki/McBean (Kirkland
Lake)
|
320
|
382
|
Upper Canada (Kirkland
Lake)
|
722
|
1,863
|
Kittila
|
1,971
|
1,135
|
Kuotko
|
—
|
29
|
Barsele
(55%)
|
176
|
1,005
|
Pinos Altos
|
797
|
332
|
La India
|
101
|
3
|
Tarachi
|
361
|
4
|
Chipriona
|
260
|
130
|
El Barqueno
Gold
|
331
|
351
|
Santa
Gertrudis
|
99
|
1,679
|
Total Mineral
Resources
|
17,253
|
23,709
|
*Ownership of mines and
projects is 100% unless otherwise indicated. Where Agnico Eagle's
interest is less than 100%, the stated mineral resources reflect
the Company's interest.
|
Kirkland Lake Gold's Gold Mineral Reserves Totaled 18.9
Million Ounces at Year-End 2021; Strong Growth in Detour Lake
Mineral Reserves Anticipated in Technical Report and Life-of-Mine
Plan Expected to be Released in 2022
Highlights from Kirkland Lake Gold's December 31, 2021 mineral reserve estimate
include:
- 15 million ounces of gold in proven and probable mineral
reserves at Detour Lake at year-end 2021. Strong growth in mineral
reserves at Detour Lake is expected in new mineral reserve estimate
to be included as part of 2022 technical report and life-of-mine
plan expected in the second quarter of 2022
- Successful conversion drilling at Fosterville during 2021 resulted in the
addition of 569,361 ounces of gold in proven and probable mineral
reserves, which resulted in net growth of mineral reserves of
44,000 ounces of gold after production depletion of 525,361 ounces
of gold
At December 31, 2021, Kirkland
Lake Gold's proven and probable mineral reserves (net of 2021 gold
production) totaled 583.5 million tonnes grading 1.01 g/t gold,
containing approximately 18.9 million ounces of gold, comprised of
proven mineral reserves of 81.7 million tonnes grading 1.41 g/t
gold (3.7 million ounces of gold) and probable mineral reserves of
502 million tonnes grading 0.94 g/t gold (15.2 million ounces of
gold).
This compares with proven and probable mineral reserves at
December 31, 2020 of 604.6 million
tonnes grading 1.03 g/t gold, containing approximately 20.1 million
ounces of gold, comprised of proven mineral reserves of 85.0
million tonnes grading 1.50 g/t gold and probable mineral reserves
of 519.6 million tonnes grading 0.96 g/t gold.
The decrease in Kirkland Lake Gold's total proven and probable
mineral reserves at year-end 2021 compared to the previous year
largely reflected total mine production of 1.5 million ounces of
gold in-situ (25.1 million tonnes grading 1.87 g/t
gold). The impact of production depletion was partially
offset by the successful conversion of a large proportion of
indicated mineral resources to mineral reserves at Fosterville, with net growth in mineral
reserves of 44,000 ounces after production depletion.
The mineral reserves for Detour Lake at year-end 2021 are the
mineral reserves that were estimated at December 31, 2020 reduced by depletion of
approximately 741,000 ounces from mine production during
2021. A new mineral reserve estimate for Detour Lake,
reflecting the impact a 10.1-million-ounce increase in open-pit
measured and indicated mineral resources announced as part of the
Mid-Year 2021 Mineral Resource Estimate update on September 2, 2021, as well as the full impact of
exploration success achieved throughout all of 2021, is expected to
be released in the second quarter of 2022 as part of a new
technical report and life-of-mine plan for Detour Lake.
Kirkland Lake Gold's gold mineral reserves at December 31, 2021 are set out below, compared
with the gold mineral reserves a year earlier:
Gold Mineral
Reserves By Mine or
Deposit
|
Proven &
Probable Mineral
Reserve (000s gold ounces
|
Average Mineral
Reserve
Gold Grade (g/t
|
2021
|
2020
|
Change
(000s oz
gold)
|
2021
|
2020
|
Change
(g/t gold)
|
Macassa
|
1,856
|
2,282
|
-426
|
16.26
|
20.1
|
-3.84
|
Macassa Near
Surface
|
0
|
86
|
-86
|
0
|
8.7
|
-8.7
|
Total CDN
Underground
|
1,856
|
2,369
|
-513
|
16.26
|
19.18
|
-2.93
|
Detour Lake Pit - Above
0.5 g/t
|
11,149
|
11,862
|
-713
|
0.96
|
0.96
|
-0.01
|
Detour Lake Pit - Below
0.5 g/t
|
1,482
|
1,510
|
-28
|
0.41
|
0.41
|
0
|
West Detour Pit - Above
0.5 g/t
|
1,779
|
1,779
|
0
|
0.95
|
0.95
|
0
|
West Detour Pit - Below
0.5 g/t
|
416
|
416
|
0
|
0.4
|
0.4
|
0
|
North Pit - Above 0.5
g/t
|
180
|
180
|
0
|
0.95
|
0.95
|
0
|
North Pit - Below 0.5
g/t
|
29
|
29
|
0
|
0.41
|
0.41
|
0
|
Total CDN Open Pit -
Above 0.5 g/t
|
13,108
|
13,821
|
-713
|
0.96
|
0.96
|
-0.01
|
Total CDN Open Pit -
Below 0.5 g/t
|
1,926
|
1,954
|
-28
|
0.41
|
0.41
|
0
|
Total CDN
Operations
|
16,890
|
18,144
|
-1,253
|
0.91
|
0.94
|
-0.03
|
Fosterville
|
1,861
|
1,794
|
67
|
10.33
|
15.45
|
-5.12
|
Robbin's
Hill
|
157
|
180
|
-23
|
4.67
|
5.29
|
-0.62
|
Northern
Territory
|
0
|
0
|
0
|
0
|
0
|
0
|
Total AUS
Operations
|
2,018
|
1,974
|
44
|
9.44
|
13.15
|
-3.71
|
Total
|
18,909
|
20,118
|
-1,209
|
1.01
|
1.03
|
-0.03
|
Data in the table above and certain other data in this section
of the news release have been rounded to the nearest thousand, and
any discrepancies in total amounts are due to rounding. For
detailed mineral reserves and mineral resources data see "Detailed
Mineral Reserve and Mineral Resource Data (as at December 31, 2021)" in the Appendix.
Mineral reserves are in-situ.
The economic parameters used to estimate mineral reserves and
mineral resources for all Kirkland Lake Gold properties as at
December 31, 2021 are set out in the
table below.
Assumptions used for Kirkland Lake Gold's December 31, 2021 mineral reserve
estimate
|
Gold
(US$/oz)
|
C$
per
US$1.00
|
A$ per
US$1.00
|
Mineral
Reserves
|
$1,300
|
$1.31
|
$1.36
|
The above metal price assumptions are below the three-year
historic gold price average (from January 1,
2019 to December 31, 2021) of
approximately $1,654 per ounce.
Mineral reserves at Detour Lake at December 31, 2021 include proven mineral reserves
of 80.3 million tonnes grading 1.13 g/t gold for approximately 2.9
million ounces of gold and probable mineral reserves of 493.0
million tonnes grading 0.76 g/t gold for approximately 12.1 million
ounces of gold.
In 2021, Detour Lake achieved record production with a total of
24.1 million tonnes of ore grading 1.00 g/t gold being processed
containing approximately 778,000 ounces of gold in-situ. The
reduction in mineral reserves of approximately 741,000 ounces of
gold at year-end 2021 resulted from the mine depletion partially
offset by the impact of positive production reconciliations.
Kirkland Lake Gold's Mid-Year 2021 Mineral Resource Estimate
incorporated drilling results to July 26,
2021 and included a tripling of open-pit measured and
indicated mineral resources. Based on the considerable
exploration success throughout 2021 and mineral resource growth
achieved to date, Kirkland Lake Gold expects that a significant
proportion of mineral resources at Detour Lake may be converted
into mineral reserves in the next mineral reserve estimate,
expected before the end of the second quarter of 2022
At Fosterville, proven mineral
reserves were 1.2 million tonnes grading 17.31 g/t gold for 679,000
ounces of gold and probable mineral reserves were 5.4 million
tonnes grading 7.67 g/t gold for 1.3 million ounces of gold at
December 31, 2021. The
December 31, 2021 mineral reserve
estimate represents a 44,000 ounce increase in proven and probable
mineral reserves from year-end 2020 after depletion of 525,361
ounces of gold mined in situ and successful conversion drilling
during 2021. Positive grade reconciliations observed in 2021
also contributed to the mineral reserve increase by reducing the
impact of mine depletion when compared with the prior year-end
mineral reserves.
At Macassa, proven mineral reserves totaled 237,000 tonnes
grading 15.30 g/t gold for 116,000 ounces of gold and probable
mineral reserves totaled 3.3 million tonnes grading 16.32 g/t gold
for 1.7 million ounces of gold at December
31, 2021. The 513,000 ounce decrease in proven and
probable gold mineral reserves from the previous year reflected
mine production during 2021 totaling approximately 214,000 ounces
of gold in-situ as well as the impact of re-interpretations
and revisions to estimation parameters which reduced mineral
reserves by approximately 300,000 ounces of gold.
Kirkland Lake Gold's Measured and Indicated Mineral Resources
Increased by 79% to 22.4 Million Ounces of Gold Due to Exploration
Success at Detour Lake and Fosterville
Highlights from Kirkland Lake Gold's December 31, 2021 measured and indicated mineral
resources estimate include:
- Addition of 10.1 million ounces of new measured and indicated
mineral resources at the Detour Lake mine reflecting significant
new drilling and exploration success at the Future West Pit and
Saddle Zones (Mineral resources as at December 31, 2021 were not updated from Mid-Year
2021 Mineral Resource Estimate)
- Addition of 150,000 ounces of new measured and indicated
mineral resources at the Fosterville mine due to exploration success at
the Lower Phoenix and Robbin's Hill Deposits
At December 31, 2021, Kirkland
Lake Gold's total measured and indicated mineral resources were
estimated at 22.4 million ounces of gold (647.3 million tonnes
grading 1.08 g/t gold), which is a 79% increase in ounces (9.9
million ounces) compared to the 12.5 million ounces (207.1 million
tonnes grading 1.88 g/t gold) estimated at December 31, 2020. Total measured mineral
resources were 34.1 million tonnes grading 2.33 g/t gold (2.6
million ounces of gold) and total indicated mineral resources were
613.2 million tonnes grading 1.01 g/t gold (19.9 million ounces of
gold) as at December 31, 2021.
(See Kirkland Lake Gold's news
release dated February 25, 2021 for
details regarding Kirkland Lake Gold's December 2020 measured and indicated mineral
resource estimate).
For the Detour Lake mine, measured mineral resources were 25.8
million tonnes grading 1.53 g/t gold (1.3 million ounces of gold)
and indicated mineral resources were 549.1 million tonnes grading
0.79 g/t (14.0 million ounces of gold) as at December 31, 2021. (Mineral resources were
not updated from the Mid-Year 2021 Mineral Resource
Estimate). Detour Lake's combined measured and indicated
mineral resources totaled 15.2 million ounces of gold (574.9
million tonnes grading 0.83 g/t gold) at year-end 2021, which is a
194% increase in ounces (10.1 million ounces) compared to the 5.2
million ounces (134.1 million tonnes grading 1.20 g/t gold)
estimated at December 31, 2020.
The increase in measured and indicated mineral resources was driven
by significant drilling success achieved since Detour Lake was
acquired by Kirkland Lake Gold on January
31, 2020. Drilling conducted in 2021 after the
mid-year mineral resource update was not incorporated in the
December 31, 2021 mineral resource
estimate, and will be incorporated in a new mineral resource
estimate for Detour Lake expected to be released in the second
quarter of 2022.
For the Fosterville mine
complex including Robbin's Hill, measured mineral resources were
1.1 million tonnes grading 4.4 g/t gold (156,000 ounces of gold)
and indicated mineral resources were 10.2 million tonnes grading
5.2 g/t gold (1.7 million ounces of gold) as at December 31, 2021.
Total measured and indicated mineral resources at Fosterville were 1.9 million ounces of gold
(11.3 million tonnes grading 5.14 g/t gold) at December 31, 2021 including a combined 1.5
million ounces of gold at the Lower Phoenix and Harrier deposits
(8.9 million tonnes grading 5.26 g/t gold) and 355,000 ounces of
gold at the Robbin's Hill deposit (2.4 million tonnes grading 4.69
g/t gold). The December 31,
2021 estimate for Fosterville represents a 9% increase in gold
ounces (150,000 ounces) and 5% decrease in grade from the 1.7
million ounces (9.8 million measured and indicated tonnes grading
5.44 g/t gold) estimated at December
31, 2020. Approximately 83% of the overall increase in
gold ounces (124,000 ounces) was at the Lower Phoenix and Harrier
deposits, with the remainder (26,000 ounces) coming from the
Robbin's Hill deposit. The increase in measured and
indicated mineral resources in both areas was largely due to
successful exploration and conversion drilling of previously
defined inferred mineral resource as well as a reduction of cut-off
grades for certain zones based on a re-evaluation of mining
approaches.
At the Macassa mine, measured mineral resources were 252,000
tonnes grading 16.2 g/t gold (131,000 ounces of gold) and indicated
mineral resources were 1.6 million tonnes grading 12.1 g/t gold
(640,000 ounces of gold) at December
31, 2021. Total measured and indicated mineral
resources were estimated at 770,000 ounces of gold (1.9 million
tonnes grading 12.61 g/t gold) at December
31, 2021 compared to 792,000 ounces (1.92 million tonnes
grading 12.85 g/t) as at December 31,
2020. The slight decrease in measured and indicated mineral
resources largely resulted from lower than expected levels of
conversion drilling being completed due to drilling contractor
workforce shortages as well as the impact of revisions to
estimation parameters.
Kirkland Lake Gold's measured and indicated mineral resources at
December 31, 2021 included an
adjustment to remove 271,000 ounces gold from measured and
indicated mineral resources at the Holt Complex as well as assets
in the Northern Territory of Australia. Operations at the
Holt Complex and the Northern Territory assets were suspended in
early 2020.
Kirkland Lake Gold's Inferred Mineral Resources of 6.9
Million Ounces at December 31, 2021
Remain Largely Unchanged
Highlights from Kirkland Lake Gold's December 31, 2021
inferred mineral resource estimate include:
- Inferred mineral resources at Macassa increased by 367,000
ounces, or 48%, largely due to exploration success and the
re-classification of measured and indicated mineral resources to
inferred mineral resources
- Growth in inferred mineral resources by 363,000 ounces, or 78%,
at the Robbin's Hill deposit at Fosterville largely offset the impact of
converting existing inferred mineral resources into measured and
indicated mineral resources at the Lower Phoenix and Harrier
deposits
At December 31, 2021, Kirkland
Lake Gold's inferred mineral resources were estimated at 6.9
million ounces of gold (93.8 million tonnes grading 2.28 g/t gold),
compared to 6.9 million ounces of gold (92.9 million tonnes grading
2.32 g/t) as at December 31,
2020.
Inferred mineral resources for the Detour Lake mine were
estimated at 1.3 million ounces of gold (53.3 million tonnes at an
average grade of 0.78 g/t gold) at December
31, 2021. This compares with the 1.6 million ounces (53.3
million tonnes grading 0.94 g/t gold) of inferred mineral resources
at Detour Lake as at December 31,
2020. The year-over-year decrease was mainly attributable to
the conversion of inferred mineral resources to the indicated
mineral resource category as part of the mid-year 2021 mineral
resource estimate. Drilling conducted in 2021 after the
Mid-Year Mineral Resource Estimate was not incorporated in the
year-end 2021 mineral resource estimate, and will be incorporated
in a new mineral resource update for Detour Lake expected to be
released in the second quarter of 2022.
Inferred mineral resources for the Fosterville mine complex at December 31, 2021 totaled 1.7 million ounces of
gold (9.3 million tonnes grading 5.72 g/t gold), compared to 1.7
million ounces of gold (8.6 million tonnes grading 6.35 g/t gold)
at year-end 2020. Included in the total inferred mineral
resource were 874,000 ounces (5 million tonnes grading 5.48 g/t
gold) from the Lower Phoenix and Harrier deposits and 830,000
ounces (4.3 million tonnes grading 5.98 g/t gold) from the Robbin's
Hill deposit. The December 31,
2021 inferred mineral resource estimate for Lower Phoenix
and Harrier was 404,000 ounces lower when compared to December 31, 2020, with the decrease mainly
reflecting the conversion of mineral resources from the inferred
category to the measured and indicated categories.
Inferred mineral resources at Robbin's Hill increased by 363,000
ounces, or a 78% increase from 467,000 ounces (2.4 million tonnes
grading 6.01 g/t gold) in the previous year with the increase
largely resulting from exploration success down-plunge of previous
mineral reserves and mineral resources.
Inferred mineral resources for the Macassa mine at December 31, 2021 were estimated at 1.1 million
ounces of gold (2.4 million tonnes grading 14.77 g/t gold), or a
48% increase in gold ounces (367,000 ounces) from 763,000 ounces
(1.4 million tonnes grading 16.42 g/t gold) estimated at
December 31, 2020. The increase
in inferred mineral resources reflects the identification of new
mineralization that was not sufficiently drilled in 2021 to be
converted to indicated mineral resources as well as the
re-classification of some mineral resources from measured and
indicated to inferred due to revisions to estimation
parameters.
The distribution of Kirkland Lake Gold's mineral resources
by property at December 31, 2021 is
set out in the following table
|
Measured &
Indicated
Mineral Resources
|
Inferred Mineral
Resources
|
(000 oz
gold)
|
(000 oz
gold)
|
Canadian
Assets
|
|
|
Detour Main
Pit
|
8.075
|
545
|
West Detour
|
6,643
|
651
|
Detour Zone
58N
|
534
|
136
|
Detour Lake
Total
|
15,253
|
1,332
|
Macassa
|
748
|
1,052
|
Macassa Near
Surface
|
23
|
78
|
Macassa
Total
|
770
|
1,130
|
Aquarius
|
1,106
|
14
|
Holt Complex
|
1,699
|
1,310
|
Subtotal Canadian
Assets
|
18,828
|
3,785
|
|
|
|
Australian
Assets
|
|
|
Fosterville Open
Pit
|
154
|
15
|
Fosterville
Underground
|
1,358
|
859
|
Fosterville
Total
|
1,512
|
874
|
Robbin's Hill Open
Pit
|
47
|
2
|
Robbin's Hill
Underground
|
307
|
828
|
Robbin's Hill
Total
|
355
|
830
|
Fosterville Complex
Total
|
1,866
|
1,704
|
Northern Territory Open
Pit
|
870
|
787
|
Northern Territory
Underground
|
860
|
606
|
Northern Territory
Total
|
1,729
|
1,393
|
Subtotal
Australian Assets
|
3,596
|
3,097
|
Total Mineral
Resources
|
22,423
|
6,882
|
*Ownership of mines
and projects is 100% unless otherwise indicated.
|
For a detailed discussion of mineral reserves and mineral
resources see "Detailed Mineral Reserve and Mineral Resource Data
(as at December 31, 2021)" in the
Appendix.
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and LZ5
mines) and the Goldex mine and a 50% interest in the Canadian
Malartic mine. These mines are located within 50 kilometres
of each other, which provides operating synergies and allows for
the sharing of technical expertise.
LaRonde Complex – Seven Millionth Ounce of Gold Poured;
Automation Drives Consistent Increase in Mining Rate at LZ5; Record
Tonnes Milled in 2021
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988. The LZ5 property lies adjacent to and west of the
LaRonde mine and previous operators exploited the zone by open pit
mining. The LZ5 mine achieved commercial production in
June 2018.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
739
|
|
739
|
Tonnes of ore milled
per day
|
|
8,033
|
|
8,033
|
Gold grade
(g/t)
|
|
3.67
|
|
4.69
|
Gold production
(ounces)
|
|
82,386
|
|
105,729
|
Production costs per
tonne (C$)
|
|
$
|
131
|
|
$
|
102
|
Minesite costs per
tonne (C$)
|
|
$
|
116
|
|
$
|
106
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
934
|
|
$
|
539
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
664
|
|
$
|
433
|
Gold production in the fourth quarter of 2021 decreased when
compared to the prior-year period primarily due to lower gold
grades. An adjustment to the mining sequence related to a
blockage of the pastefill network in the third quarter of 2021 and
lower availability of automated scoops resulted in a higher
proportion of the ore milled being sourced from lower grade stopes
and LZ5 in the fourth quarter of 2021.
Production costs per tonne in the fourth quarter of 2021
increased when compared to the prior-year period primarily as a
result of the timing of unsold concentrate inventory, higher mine
production costs resulting from higher labour and ground
support costs, and higher mill production costs resulting from
higher unit costs for reagents and grinding media, and additional
ore-handling costs during the repair of a surface ore silo.
Production costs per ounce in the fourth quarter of 2021 increased
when compared to the prior-year period primarily as a result of
lower gold grades, higher production costs per tonne, and the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to higher mine
production costs resulting from higher labour and ground
support costs, and higher mill production costs resulting from
higher unit costs for reagents and grinding media and additional
ore-handling costs during the repair of a surface ore silo.
Total cash costs per ounce in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to lower gold
grades, higher minesite cost per tonne, and the strengthening of
the Canadian dollar against the U.S. dollar.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
2,961
|
|
2,674
|
Tonnes of ore milled
per day
|
|
8,112
|
|
7,306
|
Gold grade
(g/t)
|
|
4.20
|
|
4.29
|
Gold production
(ounces)
|
|
379,734
|
|
349,913
|
Production costs per
tonne (C$)
|
|
$
|
122
|
|
$
|
109
|
Minesite costs per
tonne (C$)
|
|
$
|
112
|
|
$
|
105
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
760
|
|
$
|
622
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
535
|
|
$
|
517
|
Gold production in the full year 2021 increased when compared to
the prior year primarily as a result of higher throughput,
partially offset by lower gold grades. In the full year 2021,
the LaRonde Complex operated at or above planned levels, while in
the prior year, the operations were suspended from March 23, 2020 to April
29, 2020 as ordered by the Government of Quebec in response to COVID-19 (the "Quebec
Order").
Production costs per tonne in the full year 2021 increased when
compared to the prior year primarily due to the timing of unsold
concentrate inventory, higher development activity, higher mine
production costs resulting from higher labour and ground
support costs, and higher mill production costs resulting from
higher unit costs for reagents and grinding media. Production
costs per ounce in the full year 2021 increased when compared to
the prior year due to the reasons described above and the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the full year 2021 increased when
compared to the prior year primarily due to higher development
activity, higher mine production costs resulting from higher
labour and ground support costs, and higher mill production costs
resulting from higher unit costs for reagents and grinding
media. Total cash costs per ounce in the full year 2021
increased when compared to the prior year due to the strengthening
of the Canadian dollar against the U.S. dollar, higher minesite
costs per tonne and lower gold grades, partially offset by higher
by-product revenues due to higher average realized by-product metal
prices.
Operational Highlights
- In the fourth quarter of 2021, the LaRonde Complex poured its
seven millionth ounce of gold since the beginning of the operation
in 1988. The Complex also set a record for tonnes milled in
2021
- A delay in the mining sequence resulted in lower production
from the West mine area (15% of gold produced) and overall lower
gold grades in the fourth quarter of 2021. In the first quarter of
2022, approximately 20-25% of the gold is expected to be sourced
from the West mine area
- In the fourth quarter of 2021, the mining rate at the LZ5 mine
averaged approximately 3,264 tpd. With a production rate above
3,200 tpd for a second consecutive quarter, the site has
demonstrated the benefits from automated equipment and is now
targeting to maintain this mining rate of 3,200 tpd in 2022
- The LaRonde Complex has been successful at incrementally
implementing automation for its production activities and is
increasingly relying on this technology. In 2021, at the LaRonde
mine, 27% of the production mucking was done in automated mode with
operators based on surface, compared to an initial objective of
17%. In 2021, at the LZ5 mine, 23% of the production mucking was
done in automated mode with operators based on surface, compared to
an initial objective of 20%. In 2022, the Company has set targets
of 30% of the production mucking at LaRonde and 23% of the
production mucking and hauling at LZ5 to be done in automated mode,
while also working on remote production drilling
- In the fourth quarter of 2021, the major maintenance for
booster fan 194 at the LaRonde mine was completed as per schedule.
The maintenance work to repair and improve the 5,000 tonne surface
ore silo commenced and is expected to be completed in the first
quarter of 2022. During this maintenance work, the mill is
operating at normal levels
- The signature of a collaboration agreement with First Nations
groups, which was planned in November
2021, was postponed and is now expected in 2022
Project Highlights
- At Zone LR11-3 (which is at the past producing Bousquet 2
mine), the dewatering of the old workings and the development
continued according to plan in the fourth quarter of 2021.
Production from LR11-3 is expected to begin in late 2022
- The construction of the drystack tailings facilities is
progressing on schedule. The installation of the mechanical
equipment has started and the filter-press assembly is underway.
The drystack tailings facility is expected to be operational by the
end of 2022
Exploration
- The rehabilitation work of track drift 9-0, the enlargement of
track drift 215 and the development of exploration drift 290
continued to progress in the fourth quarter of 2021. Initial
drilling targeting mineralized zones beneath the past producing
Bousquet mine is ongoing from the drill stations rehabilitated so
far on track drift 9-0 and initial results are expected later in
2022
- Exploration drilling in the core of the 20N Zinc South Zone
continued and returned significant intercepts, including hole
LR-317-004A, which yielded 12.6 g/t gold, 271 g/t silver, 1.47%
copper and 1.8% zinc over 2.8 metres at 3,438 metres depth
approximately 118 metres beneath the mineral reserves defined at
the end of 2021. The intercept confirms that the zone gets richer
in gold at depth and remains open at depth and laterally
Canadian Malartic – Record Mining Performance in 2021 Drives
Record Annual Gold Production; Six Millionth Ounce of Gold Poured
(100% Basis) in 2021
In June 2014, Agnico Eagle and
Yamana acquired Osisko Mining Corporation (now Canadian
Malartic Corporation) and created
the Partnership. The Partnership owns the Canadian Malartic
mine in northwestern Quebec and
operates it through a joint management committee. Each of
Agnico Eagle and Yamana has a direct and indirect 50% ownership
interest in the Partnership. All volume data in this section
reflect the Company's 50% interest in the Canadian Malartic mine,
except as otherwise indicated. The Odyssey underground
project was approved for construction in February 2021.
Canadian Malartic
Mine – Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
5,530
|
|
5,738
|
Tonnes of ore milled
per day (100%)
|
|
60,109
|
|
62,370
|
Gold grade
(g/t)
|
|
1.12
|
|
1.07
|
Gold production
(ounces)
|
|
88,933
|
|
86,371
|
Production costs per
tonne (C$)
|
|
$
|
28
|
|
$
|
26
|
Minesite costs per
tonne (C$)
|
|
$
|
28
|
|
$
|
27
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
689
|
|
$
|
668
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
676
|
|
$
|
656
|
Gold production in the fourth quarter of 2021 increased when
compared to the prior-year period primarily due to higher gold
grades and higher metallurgical recovery, partially offset by lower
throughput. In the fourth quarter of 2021, Canadian Malartic
benefited from higher grades and recoveries from ore in the
Malartic pit and higher sourcing from the higher grade Barnat
pit. The mill delivered another strong quarterly performance
with throughput of 60,109 tpd achieved, which was above plan but
lower than the record throughput of 62,370 tpd achieved in the
fourth quarter of 2020.
Production costs per tonne in the fourth quarter of 2021
increased when compared to the prior-year period primarily due to
higher mine and mill production costs resulting from lower
throughput levels and the timing of unsold inventory.
Production costs per ounce in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to higher
production costs per tonne and the strengthening of the Canadian
dollar against the U.S. dollar, partially offset by higher gold
grades.
Minesite costs per tonne in the fourth quarter of 2021 were
essentially the same when compared to the prior-year period
primarily due to higher mine and mill production costs resulting
from lower throughput levels being offset by
higher deferred stripping adjustment. Total cash costs
per ounce in the fourth quarter of 2021 increased when compared to
the prior-year period primarily due to the strengthening of the
Canadian dollar against the U.S. dollar, partially offset by higher
gold grades.
Canadian Malartic
Mine – Operating Statistics*
|
|
|
|
|
All metrics exclude
pre-commercial production tonnes and ounces
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
22,260
|
|
19,337
|
Tonnes of ore milled
per day (100%)**
|
|
60,986
|
|
56,832
|
Gold grade
(g/t)
|
|
1.11
|
|
0.97
|
Gold production
(ounces)
|
|
357,392
|
|
265,387
|
Production costs per
tonne (C$)
|
|
$
|
28
|
|
$
|
27
|
Minesite costs per
tonne (C$)
|
|
$
|
28
|
|
$
|
27
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
679
|
|
$
|
736
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
663
|
|
$
|
723
|
*For the full year
2020, the Barnat open pit had 18,930 ounces of pre-commercial gold
production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 340 days for the full year 2020.
|
Gold production in the full year 2021 increased when compared to
the prior year primarily due to higher throughput and higher gold
grades. The higher throughput primarily resulted from strong
operational performance and continuous operation through 2021
while, in the prior year, the operations were suspended from
March 23, 2020 to April 17, 2020 due to the Quebec Order. The
higher gold grade primarily resulted from increased sourcing of ore
from the higher grade Barnat pit in 2021 as per the mining sequence
while, in the prior year, lower grade stockpiles were processed
during the ramp-up of operations following the Quebec Order.
Production costs per tonne in the full year 2021 were
essentially the same when compared to the prior year primarily due
to higher open pit production costs resulting from a higher
stripping ratio at the Barnat pit, partially offset by higher
throughput and higher deferred stripping adjustment.
Production costs per ounce in the full year 2021 decreased when
compared to the prior year primarily due to higher gold production,
partially offset by the strengthening of the Canadian dollar
against the U.S. dollar.
Minesite costs per tonne in the full year 2021 were essentially
the same when compared to the prior year primarily due to higher
open pit production costs resulting from a higher stripping ratio
at the Barnat pit, partially offset by higher throughput and higher
deferred stripping adjustment. Total cash costs per ounce in
the full year 2021 decreased when compared to the prior year
primarily due to higher gold production, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar.
Operational Highlights
- In the fourth quarter of 2021, the Canadian Malartic mine
poured its six millionth ounce of gold (100% basis) since the
beginning of the operation in 2011
- In 2021, record operational performances and high gold grades
drove record annual gold production to 714,784 ounces (100%
basis)
- The fourth quarter of 2021 was the third consecutive quarter
with over 18 million tonnes extracted from the pits. Open pit
production was above plan at the Canadian Malartic pit, which
remains a focus area to ensure the completion of the pit in 2023 in
time for a transition to in-pit tailings disposal in 2024
Project Highlights
Canadian Malartic:
- The Partnership recently reviewed the potential to increase
capacity in a portion of the tailings facility. However, the
Partnership determined that the best option was to optimize the
processing plan to improve the production profile during the
transition to the Odyssey underground project. This has resulted in
an adjustment of the mill rate to 51,500 tpd in 2022 and is
expected to enhance the financial metrics and cash flow in the
near-term
Odyssey Project:
- An update of the Odyssey Project is set-out above in the
"Future Value Drivers" section of this news release
Goldex – One Millionth Ounce of Gold Poured Since the Restart
in 2013
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
729
|
|
756
|
Tonnes of ore milled
per day
|
|
7,924
|
|
8,217
|
Gold grade
(g/t)
|
|
1.70
|
|
1.79
|
Gold production
(ounces)
|
|
35,921
|
|
39,507
|
Production costs per
tonne (C$)
|
|
$
|
44
|
|
$
|
42
|
Minesite costs per
tonne (C$)
|
|
$
|
44
|
|
$
|
42
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
701
|
|
$
|
624
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
679
|
|
$
|
591
|
Gold production in the fourth quarter of 2021 decreased when
compared to the prior-year period primarily due to lower gold
grades and lower throughput levels. In the fourth quarter of
2021, the Goldex mine delivered a solid performance in line with
the production plan, while in the fourth quarter of 2020, the mine
achieved record quarterly production in terms of mill throughput
and ounces resulting from the mining of higher grade stopes.
Production costs per tonne in the fourth quarter of 2021
increased when compared to the prior-year period primarily due to
higher mine costs resulting from higher ground support costs,
increased production from the South Zone, and mill production
costs resulting from lower throughput levels and higher unit costs
for reagents and grinding media. Production costs per ounce
in the fourth quarter of 2021 increased when compared to the
prior-year period primarily due to lower gold grades, higher
production costs per tonne and the strengthening of the Canadian
dollar against the U.S. dollar.
Minesite costs per tonne in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to reasons
described above. Total cash costs per ounce in the fourth
quarter of 2021 increased when compared to the prior-year period
due to lower gold grades, higher minesite costs per tonne and the
strengthening of the Canadian dollar against the U.S. dollar.
Goldex Mine –
Operating Statistics
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
2,874
|
|
2,655
|
Tonnes of ore milled
per day
|
|
7,874
|
|
7,254
|
Gold grade
(g/t)
|
|
1.60
|
|
1.64
|
Gold production
(ounces)
|
|
134,053
|
|
127,540
|
Production costs per
tonne (C$)
|
|
$
|
42
|
|
$
|
41
|
Minesite costs per
tonne (C$)
|
|
$
|
42
|
|
$
|
41
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
717
|
|
$
|
648
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
684
|
|
$
|
634
|
Gold production in the full year 2021 increased when compared to
the prior year primarily due to higher mill throughput levels,
partially offset by lower grades. The higher throughput
primarily resulted from continuous operation through the year
while, in the prior year, the operations were suspended from
March 23, 2020 to April 24, 2020 due to the Quebec Order.
Production costs per tonne in the full year 2021 were
essentially the same when compared to the prior year.
Production costs per ounce in the full year 2021 increased when
compared to the prior year primarily due to the strengthening of
the Canadian dollar against the U.S. dollar and lower gold
grades.
Minesite costs per tonne in the full year 2021 were essentially
the same when compared to the prior year. Total cash costs
per ounce in the full year 2021 increased when compared to the
prior year due to the strengthening of the Canadian dollar against
the U.S. dollar and lower gold grades.
Operational Highlights
- In 2021, Goldex achieved its best results in terms of health
and safety since the restart of the operation in 2013
- In the fourth quarter of 2021, the Goldex mine poured its one
millionth ounce of gold since the restart of the operation in
2013
- Work on the pastefill network was completed in November 2021, returning it to normal operating
levels. Production in the higher grade South Zone and Deep 1 Zone
resumed as per the adjusted mining sequence
- Ore production from the South Zone was 776 tpd in the fourth
quarter of 2021 and reached 1,319 tpd in December 2021. The increased ore production from
the South Zone contributed to the higher gold grade processed in
the fourth quarter of 2021
- In the fourth quarter of 2021, the Rail-Veyor operated at 7,143
tpd, above its design capacity of 7,000 tpd
NUNAVUT
Agnico Eagle considers Nunavut
a politically attractive and stable jurisdiction with enormous
geological potential. With the Company's Meliadine mine and
Meadowbank Complex (including the Amaruq satellite deposit),
together with the recently acquired Hope Bay project and other
exploration projects, Nunavut has
the potential to be a strategic operating platform for the Company
with the ability to generate strong gold production and cash flows
over several decades.
In December 2021, as a result of
the increase in COVID-19 cases at its Nunavut operations, the Company took the
precautionary step to send home the Nunavut based workforce and reduce site
activities.
Meliadine Mine – Record Annual Gold Production; New Eastern
Extension Discovered at Tiriganiaq
Located near Rankin Inlet in
the Kivalliq District of Nunavut,
Canada, the Meliadine project was acquired in July
2010. The Company owns 100% of the 98,222-hectare
property. In February 2017, the
Company's Board of Directors approved the construction of the
Meliadine project and commercial production was declared on
May 14, 2019.
Meliadine Mine –
Operating Statistics*
|
|
|
|
|
All metrics exclude
pre-commercial production tonnes and ounces
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
462
|
|
334
|
Tonnes of ore milled
per day**
|
|
5,022
|
|
4,023
|
Gold grade
(g/t)
|
|
7.07
|
|
8.08
|
Gold production
(ounces)
|
|
101,843
|
|
88,273
|
Production costs per
tonne (C$)
|
|
$
|
188
|
|
$
|
248
|
Minesite costs per
tonne (C$)
|
|
$
|
190
|
|
$
|
234
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
680
|
|
$
|
716
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
656
|
|
$
|
652
|
*In the fourth
quarter of 2020, the Tiriganiaq open pit had 4,509 ounces of
pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 83 days for the three months ended December 31,
2020
|
Gold production in the fourth quarter of 2021 increased when
compared to the prior-year period primarily due to a record
quarterly processing rate at 5,022 tpd, above the targeted 4,800
tpd, partially offset by lower gold grades resulting from an
increase in tonnage sourced from the lower grade open pit ore.
Production costs per tonne in the fourth quarter of 2021
decreased when compared to the prior-year period due to higher
throughput levels and the timing of unsold inventory.
Production costs per ounce in the fourth quarter of 2021 decreased
when compared to the prior-year period due to lower production
costs per tonne and the timing of unsold inventory, partially
offset by the strengthening of the Canadian dollar against the U.S.
dollar and the lower gold grades.
Minesite costs per tonne in the fourth quarter of 2021 decreased
when compared to the prior-year period primarily due to higher
throughput levels. Total cash costs per ounce in the fourth
quarter of 2021 increased when compared to the prior-year period
due to lower gold grades and the strengthening of the Canadian
dollar against the U.S. dollar, partially offset by lower minesite
costs per tonne.
Meliadine Mine –
Operating Statistics*
|
|
|
|
|
All metrics exclude
pre-commercial production tonnes and ounces
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,501
|
|
1,346
|
Tonnes of ore milled
per day**
|
|
4,698
|
|
3,813
|
Gold grade
(g/t)
|
|
7.37
|
|
7.35
|
Gold production
(ounces)
|
|
367,630
|
|
312,398
|
Production costs per
tonne (C$)
|
|
$
|
199
|
|
$
|
244
|
Minesite costs per
tonne (C$)
|
|
$
|
206
|
|
$
|
240
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
644
|
|
$
|
786
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
634
|
|
$
|
774
|
|
*In the full year
2021, the Tiriganiaq open pit had 24,057 ounces of pre-commercial
gold production. In the full year 2020, the Tiriganiaq open
pit had 6,491 ounces of pre-commercial gold
production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 319 days in the full year of 2021 and 353 days in
the full year 2020.
|
Gold production in the full year 2021 increased when compared to
the prior year primarily due to higher throughput levels and higher
gold grades. In the full year 2021, the Meliadine mine ramped
up its milling rate, achieving an average yearly processing rate of
4,698 tpd. In the prior year, the Meliadine processing plant
was affected by a failure of the crusher apron feeder resulting in
lower throughput levels in the first quarter of 2020 and by reduced
operating rates related to measures taken to reduce the spread of
COVID-19 in the second quarter of 2020.
Production costs per tonne in the full year 2021 decreased when
compared to the prior year due to higher throughput levels, the
continuous optimization of the operation processes and the timing
of unsold inventory. Production costs per ounce in the full
year 2021 decreased when compared to the prior year due to lower
production costs per tonne and higher gold grades, partially offset
by the strengthening of the Canadian dollar against the U.S.
dollar.
Minesite costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to higher throughput
levels and the continuous optimization of the operation
processes. Total cash costs per ounce in the full year 2021
decreased when compared to the prior year due to lower minesite
costs per tonne and higher gold grades, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar.
Operational Highlights
- Due to the COVID-19 outbreak in December
2021, the mine focused on production and reduced the pace
for some supporting activities, including underground development,
which is expected to slightly affect the mining sequence in early
2022. As of mid-January 2022, the
mine had returned to normal operating levels
- In 2021, the Meliadine mine achieved and exceeded the expected
timing of the ramp-up of its processing facilities, achieving an
average yearly processing rate of 4,698 tpd. In the fourth quarter
of 2021, the average processing rate increased to 5,022 tpd. The
increased mill throughput drove record yearly gold production of
391,687 ounces (including pre-commercial production from the
Tiriganiaq open pit)
- In 2022, the Meliadine mill is forecast to operate at 4,800
tpd. The Phase 2 mill expansion is expected to be completed in
mid-2024 when the processing rate is forecast to increase to 6,000
tpd, with the potential to reach 6,250 tpd in 2026
- Open pit activities in Tiriganiaq I were completed as planned
in 2021 and a first pushback is expected to start in 2022
- The saline water discharge to sea season started on
August 14, 2021 and was completed in
the fourth quarter of 2021. The inflow of saline water underground
remains below predicted levels. The surface saline water storage
facilities are expected to provide sufficient capacity to manage
water levels at site until the construction of the discharge
waterline
- The permit for the construction of the discharge waterline was
received on January 31, 2022. Once
built, the discharge waterline will be used on a seasonal basis to
discharge to sea. By replacing the discharge saline water to sea
currently done by truck, the waterline is expected to reduce costs
and the environmental impact. The construction of the waterline is
expected to start in the second quarter of 2022 and to be completed
in time for the 2024 discharge season
Exploration
- In the fourth quarter of 2021, an eastern extension of the
Tiriganiaq mineralization was discovered at depth. Highlight
intercepts include 15.8 g/t gold over 3.0 metres at 487 metres
depth in hole M21-2931A and 15.7 g/t gold over 6.6 metres at 508
metres depth in hole M21-3300
- With recent drill results demonstrating the potential for
additional gold mineralization at depth, the Company has begun
development of an exploration drift to accelerate the exploration
drilling. In the fourth quarter of 2021, the development advanced
by approximately 100 metres linear and the first drill bay was
completed. Initial drilling is expected to start in the first
quarter of 2022
Meadowbank Complex – Record Tonnes Mined in 2021; Gold
Production Affected by COVID-19 Outbreak in December 2021 and Lower Gold Grades
The 100% owned Meadowbank Complex is located approximately 110
kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of
the Meadowbank mine and mill and the Amaruq satellite deposit,
which is located 50 kilometres northwest of the Meadowbank
mine. The Meadowbank mine achieved commercial production in
March 2010, and mining activities at
the site were completed by the fourth quarter of 2019.
The Amaruq mining operation uses the existing infrastructure at
the Meadowbank minesite. Additional infrastructure has also
been built at the Amaruq site. Amaruq ore is transported
using long haul off-road type trucks to the mill at the Meadowbank
site for processing. The Amaruq satellite deposit achieved
commercial production on September 30,
2019.
Meadowbank Complex –
Operating Statistics*
|
|
|
|
|
All metrics exclude
pre-commercial production tonnes and ounces
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
782
|
|
684
|
Tonnes of ore milled
per day**
|
|
8,635
|
|
8,755
|
Gold grade
(g/t)
|
|
2.93
|
|
2.89
|
Gold production
(ounces)
|
|
67,630
|
|
57,739
|
Production costs per
tonne (C$)
|
|
$
|
181
|
|
$
|
145
|
Minesite costs per
tonne (C$)
|
|
$
|
164
|
|
$
|
132
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,652
|
|
$
|
1,297
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,434
|
|
$
|
1,142
|
|
*In the fourth
quarter of 2021, Amaruq had 1,608 ounces of pre-commercial
production from the underground project. In the fourth
quarter of 2020, Amaruq had 10,995 ounces of pre-commercial gold
production from the IVR pit.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 78 days in the fourth quarter of
2020.
|
In the fourth quarter of 2021, gold production (excluding
pre-commercial production) increased when compared to the
prior-year period primarily due to higher mill throughput and
higher gold grades from the contribution from the IVR open
pit. Including pre-commercial production, gold production in
the fourth quarter of 2021 was essentially the same as in the
prior-year period despite an 11-day interruption of the mill in
December 2021 related to
COVID-19.
Production costs per tonne in the fourth quarter of 2021
increased when compared to the prior-year period primarily due to
lower capitalized costs and higher service costs to manage the
COVID-19 outbreak, partially offset by the timing of
inventory. Production costs per ounce in the fourth quarter
of 2021 increased when compared to the prior-year period due to the
higher production costs per tonne and the strengthening of the
Canadian dollar against the U.S. dollar, partially offset by higher
gold grades.
Minesite costs per tonne in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to the reasons
described above for the increase in production costs per
tonne. Total cash costs per ounce in the fourth quarter of
2021 increased when compared to the prior-year period primarily due
to the higher minesite costs per tonne and the strengthening of the
Canadian dollar against the U.S. dollar, partially offset by higher
gold grades.
Meadowbank Complex –
Operating Statistics*
|
|
|
|
|
All metrics exclude
pre-commercial production tonnes and ounces
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
3,556
|
|
2,482
|
Tonnes of ore milled
per day**
|
|
9,782
|
|
7,113
|
Gold grade
(g/t)
|
|
3.07
|
|
2.72
|
Gold production
(ounces)
|
|
322,852
|
|
198,418
|
Production costs per
tonne (C$)
|
|
$
|
144
|
|
$
|
154
|
Minesite costs per
tonne (C$)
|
|
$
|
143
|
|
$
|
148
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,259
|
|
$
|
1,436
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,201
|
|
$
|
1,404
|
|
*For the full year
2021, the Amaruq underground project had 1,956 ounces of
pre-commercial gold production. For the full year 2020,
Amaruq had 10,995 ounces of pre-commercial gold production from the
IVR pit.
|
** Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 349 days in 2020.
|
In the full year 2021, gold production increased when compared
to the prior year primarily due to higher throughput resulting from
improved operational performance, optimization of the processing
facility and higher gold grades with deepening of the pit and the
contribution from the IVR open pit. In the prior year,
production activities were reduced and the mill was put on care and
maintenance from March 19, 2020 to
May 28, 2020 related to the
implementation of measures to reduce the spread of COVID-19.
Production costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to higher throughput
levels and continuous improvement initiatives at the mine and mill,
partially offset by a lower deferred stripping adjustment.
Production costs per ounce in the full year 2021 decreased when
compared to the prior year due to higher gold production and lower
production costs per tonne, partially offset by the strengthening
of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to the reasons for the
decrease in production costs per tonne described above. Total
cash costs per ounce in the full year 2021 decreased when compared
to the prior year due to higher gold grades and lower minesite
costs per tonne, partially offset by the strengthening of the
Canadian dollar against the U.S. dollar.
Operational Highlights
- In 2021, the Amaruq open pit continued to show consistent
improvement and set a yearly record of tonnes mined of
approximately 38.5 million tonnes. In addition, the consistent
performance of the long haul truck fleet drove a record 3.8 million
ore tonnes hauled between Amaruq and Meadowbank
- Due to the COVID-19 outbreak in December
2021, activities at the Meadowbank Complex were reduced to
essential services as of December 22,
2021. Production activities were restarted in mid-January 2022 and gradually ramped up to
normal operating levels into February
2022
- In the fourth quarter of 2021, gold grades to the mill were
lower than forecast as a result of higher than expected dilution
and the changes in the mining sequence commencing in the second
quarter of 2021. With the combination of the lower gold grades and
the 11-day suspension of activities, the gold production in the
fourth quarter of 2021 was lower than anticipated
- As a result of suspension of production activities in
December 2021 and the gradual ramp-up
of activities in January 2022, gold
production in the first quarter of 2022 is expected to be
approximately 60,000 ounces
- The Company is currently evaluating potential opportunities to
further optimize the integration of the open pit and underground
operations
- In the fourth quarter of 2021, the Company completed a
seven-day mill shutdown which included preparation work to tie-in
the High Pressure Grinding Rolls ("HPGR"). The HPGR commissioning
is expected to be completed in the second quarter of 2022
Underground Project Highlights
- In the fourth quarter of 2021, the underground development was
above target with 942 metres completed
- The construction of the underground mine infrastructure,
although affected by the COVID-19 related reduction of activities
in December 2021 and January 2022, remains on budget and on
schedule
- In the first half of 2022, the Company is focusing on the
underground project's operational readiness. The extraction of a
test stope is planned for the second quarter of 2022 and commercial
production is expected to be achieved in the second half of
2022
Hope Bay Project – Operations Suspended; Longer-term Focus on
Exploration and Evaluation of Larger Production Scenarios
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres
southwest of Cambridge Bay, the
Hope Bay project was acquired in February 2021. The Company
owns 100% of the 191,342-hectare property which includes portions
of the Hope Bay and Elu greenstone belts. The 80-kilometre
long Hope Bay greenstone belt hosts three gold deposits (Doris,
Madrid and Boston) with mineral reserves and mineral
resources and over 90 regional exploration targets. At the
time the Hope Bay project was acquired, construction at the Doris
deposit was complete and commercial production had been achieved in
the second quarter of 2017.
Hope Bay Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2021*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
7
|
|
228
|
Tonnes of ore milled
per day
|
|
76
|
|
685
|
Gold grade
(g/t)
|
|
3.60
|
|
8.42
|
Gold production
(ounces)
|
|
705
|
|
56,229
|
Production costs per
tonne (C$)
|
|
$
|
3,463
|
|
$
|
457
|
Minesite costs per
tonne (C$)
|
|
$
|
220
|
|
$
|
326
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
27,153
|
|
$
|
1,478
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,829
|
|
$
|
1,063
|
*All metrics are for
the period from February 2, 2021 to December 31,
2021.
|
In late September and early October of 2021, the Hope Bay mine
experienced a COVID-19 outbreak at site. The Company took the
precautionary step to suspend operations to ensure the safety of
its employees and to protect the surrounding communities. The
process plant stopped operations on October
7, 2021 and was not restarted in the fourth quarter of
2021. As a result, in the fourth quarter of 2021, gold
production at Hope Bay was minimal at 705 ounces and the reported
unit costs are not representative of normal operating levels.
Gold production in the full year 2021 at Hope Bay was 56,229
ounces, with production costs per tonne of C$457, production costs per ounce of $1,478, minesite costs per tonne of C$326 and total cash costs per ounce of
$1,063. All metrics for the
full year 2021 are from February 2,
2021 to December 31, 2021.
Operational Highlights
- In late September and again in mid-October, there were a
significant number of COVID-19 cases identified at site. As a
precautionary measure, the Company decided to suspend mining and
milling operations as it investigated opportunities to improve
screening and testing at the Edmonton and Yellowknife facilities and health protocols at
site
- The Company started to ramp up exploration and underground
activities in mid-November 2021.
However, with increasing cases of COVID-19 in December, the Company
again reduced all activities at site to essential services only
- In 2022 and 2023, production activities will remain suspended
and the primary focus will be on accelerating exploration and the
evaluation of larger production scenarios. The Company remains
confident in the long term potential at the Hope Bay property
FINLAND
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. The expansion of the Kittila mill
to 2.0 mtpa was completed in the fourth quarter of 2020. An
underground shaft is under construction and is expected to be
commissioned in late 2022 or early 2023. Exploration
activities continue to expand the mineral reserves and mineral
resources at the Kittila mine. Near mine exploration remains
the main focus as the deposit remains open at depth and
laterally.
Kittila – Record Annual Gold Production; Shaft Sinking
Expected to be Completed in the second half of 2022; Drilling
Confirms the Southward Extension of the Main and Sisar
Zones
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
526
|
|
353
|
Tonnes of ore milled
per day
|
|
5,717
|
|
3,837
|
Gold grade
(g/t)
|
|
4.39
|
|
4.58
|
Gold production
(ounces)
|
|
63,172
|
|
45,056
|
Production costs per
tonne (EUR)
|
|
€
|
74
|
|
€
|
90
|
Minesite costs per
tonne (EUR)
|
|
€
|
84
|
|
€
|
100
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
712
|
|
$
|
830
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
812
|
|
$
|
908
|
Gold production in the fourth quarter of 2021 increased when
compared to the prior-year period primarily due to higher
throughput levels, partially offset by lower gold grades as
expected with the planned mining sequence. The higher
throughput levels resulted from a strong operating performance in
the fourth quarter of 2021 and an extended mill shutdown in the
fourth quarter of 2020 to complete the mill expansion tie-in.
Production costs per tonne in the fourth quarter of 2021
decreased when compared to the prior-year period primarily due to
higher throughput levels, reduced contractor usage for development
and haulage, and reduced mill maintenance costs as a result of the
timing of the mill shutdown in the fourth quarter of 2020.
Production costs per ounce in the fourth quarter of 2021
decreased when compared to the prior-year period due to lower
production costs per tonne and the weakening of the Euro against
the U.S. dollar, partially offset by lower gold grades.
Minesite costs per tonne in the fourth quarter of 2021 decreased
when compared to the prior-year period primarily due to the reasons
described above. Total cash costs per ounce in the fourth
quarter of 2021 decreased when compared to the prior-year period
due to lower minesite costs per tonne and the weakening of the Euro
against the U.S. dollar, partially offset by lower gold grades.
Kittila Mine –
Operating Statistics
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
2,052
|
|
1,702
|
Tonnes of ore milled
per day
|
|
5,622
|
|
4,650
|
Gold grade
(g/t)
|
|
4.19
|
|
4.38
|
Gold production
(ounces)
|
|
239,240
|
|
208,125
|
Production costs per
tonne (EUR)
|
|
€
|
80
|
|
€
|
87
|
Minesite costs per
tonne (EUR)
|
|
€
|
82
|
|
€
|
86
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
806
|
|
$
|
816
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
835
|
|
$
|
805
|
Gold production in the full year 2021 increased when compared to
the prior year primarily due to higher throughput resulting from
the ramp-up of the Kittila mill to its expanded capacity of 2.0
mtpa, partially offset by lower gold grades related to adjustments
to the mining sequence.
Production costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to higher throughput
levels and reduced contractor usage for development and haulage.
Production costs per ounce in the full year 2021 decreased
when compared to the prior year due to lower production costs per
tonne and the timing of inventory sales, partially offset by the
lower gold grades and the strengthening of the Euro against the
U.S. dollar.
Minesite costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to higher throughput
levels and reduced contractor usage for development and
haulage. Total cash costs per ounce in the full year 2021
increased when compared to the prior year due to lower gold grades
and the strengthening of the Euro against the U.S. dollar,
partially offset by lower minesite costs per tonne.
Operational Highlights
- The mine achieved record annual gold production of 239,240
ounces in 2021. This performance was driven by successful operation
of the mill at its expanded run-rate of 2.0 mtpa and strong
performance from the underground mine which extracted a record
2,089,535 tonnes in 2021
- In the fourth quarter of 2021, ore production was higher than
planned at approximately 545,000 tonnes mined and demonstrated the
upside potential from the 2.0 mtpa mining rate. Gold grades
increased in the fourth quarter of 2021, compared to the third
quarter of 2021, with the extraction of higher grade stopes that
had previously been delayed due to a change in the mining
sequence
- Underground development was lower than expected in 2021 due to
a transitioning of contractors to permanent employees status. In
the fourth quarter of 2021, underground development performance
improved to the rate required to sustain 2022 production levels.
This transfer of contractors was one of the main contributors to a
€4 reduction in minesite costs per tonne in 2021 compared to the
prior year
- In the fourth quarter of 2021, the mine started installing a
private 5G network to support the underground and surface
operations. The network is an integral step in the digital
transformation of the mine site (unlocking new opportunities for
further automation advancements such as autonomous vehicles). The
installation will continue through 2022 with completion expected in
the fourth quarter of 2022
- As part of the annual maintenance of the autoclave, there is a
planned nine-day shutdown of the mill in the first quarter of 2022
and an eleven-day shutdown in the fourth quarter of 2022
Project Highlights
- The Kittila shaft sinking rate improved in the fourth quarter
of 2021 and the shaft sinking is approximately 70% complete. Shaft
sinking is expected to be completed in the second half of
2022. Commissioning of the production hoist is expected in late
2022 or early 2023. The overall total expansion project costs are
expected to remain within the previously disclosed estimated range
of €190 to €200 million, however the global COVID-19 situation may
have an effect on costs and schedule
- As part of the expansion project at the mine, the construction
of a nitrogen removal plant is progressing as per schedule and is
expected to be commissioned in the second half of 2022
Exploration
- In the fourth quarter of 2021, exploration drilling further
delineated a target area below the shaft currently under
construction, with a highlight hole RUG21-1537 returning 5.5 g/t
gold (uncapped) over 15.6 metres at 1,097 metres depth in the Main
Zone. In the deep exploration program, drilling in hole RIE21-700E
returned 6.3 g/t (uncapped) over 13.6 metres at 1,948 metres depth,
further confirming gold mineralization in the deep portions of the
Sisar Zone
MEXICO
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 Now in Production and Reyna de Plata Open Pit Nearing
Start-Up; Cubiro Project Advancing On Schedule
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
441
|
|
544
|
Tonnes of ore processed
per day
|
|
4,793
|
|
5,913
|
Gold grade
(g/t)
|
|
2.43
|
|
2.23
|
Gold production
(ounces)
|
|
32,741
|
|
36,671
|
Production costs per
tonne
|
|
$
|
74
|
|
$
|
69
|
Minesite costs per
tonne
|
|
$
|
82
|
|
$
|
68
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
999
|
|
$
|
1,021
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
888
|
|
$
|
767
|
Gold production in the fourth quarter of 2021 decreased when
compared to the prior-year period primarily due to lower throughput
levels resulting from the early depletion of the Sinter open
pit in the third quarter of 2021 and higher than anticipated ground
support requirements for stope preparation, partially offset by
higher gold grades from the contribution of high grade stopes from
the Cerro Colorado zone.
Production costs per tonne in the fourth quarter of 2021
increased when compared to the prior-year period primarily due to
lower throughput levels, higher processing costs related to higher
unit costs for reagents and grinding media, partially offset by the
timing of inventory. Production costs per ounce in the fourth
quarter of 2021 decreased when compared to the prior-year period
due to higher gold grades and the timing of the inventory,
partially offset by higher production costs per tonne.
Minesite costs per tonne in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to lower
throughput levels and higher processing costs related to higher
unit costs for reagents and grinding media. Total cash costs
per ounce in the fourth quarter of 2021 increased when compared to
the prior-year period due to higher minesite costs per tonne and
lower by-product revenues from lower silver volumes, partially
offset by higher gold grades.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
1,899
|
|
1,796
|
Tonnes of ore processed
per day
|
|
5,203
|
|
4,907
|
Gold grade
(g/t)
|
|
2.19
|
|
2.13
|
Gold production
(ounces)
|
|
126,932
|
|
114,798
|
Production costs per
tonne
|
|
$
|
75
|
|
$
|
69
|
Minesite costs per
tonne
|
|
$
|
75
|
|
$
|
66
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
1,115
|
|
$
|
1,086
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
858
|
|
$
|
749
|
Gold production in the full year 2021 increased when compared to
the prior year primarily due to higher throughput as the minesite
operated at planned levels through the period while, in the prior
year, the operations were suspended from April 2, 2020 to May 18,
2020 as the Government of Mexico mandated the suspension of all
non-essential businesses in response to the COVID-19 pandemic (the
"Decree").
Production costs per tonne in the full year 2021 increased when
compared to the prior year primarily due to higher processing costs
related to higher unit costs for reagents and grinding media and
higher diesel consumption to run generators during a one week power
outage that affected northern Mexico in February
2021, partially offset by higher throughput.
Production costs per ounce in the full year 2021 increased when
compared to the prior year due to higher production costs per
tonne, partially offset by the timing of inventory and higher gold
grades.
Minesite costs per tonne in the full year 2021 increased when
compared to the prior year primarily due to higher processing costs
and higher diesel consumption for the reasons described above,
partially offset by higher throughput levels. Total cash
costs per ounce in the full year 2021 increased when compared to
the prior year due to higher minesite costs per tonne and lower
by-product revenues from lower silver volumes, partially offset by
higher gold grades.
Operational Highlights
- At Sinter, a trench was mined at the bottom of the depleted
pit, contributing 32,000 tonnes in the fourth quarter of 2021.
Production from the Sinter deposit has now moved to underground.
The pastefill plant and the ventilation system are approximately
90% complete and are expected to be commissioned in the first
quarter of 2022. Sinter underground is expected to ramp up to its
full production capacity in the first half of 2022
- With the current advance of the rehabilitation work at the
Cerro Colorado Zone, the extraction of high grade stopes has
resumed at a reduced pace, which contributed to the higher than
forecast gold production for the quarter
- In 2022, approximately 90% of the ore will be produced from the
underground deposits (Santo Nino,
Cerro Colorado, Oberon de Weber
and Sinter), with the remaining 10% coming from the Reyna de Plata
Open Pit
Project Highlights
- At the Cubiro deposit, underground development advanced by 322
metres in the fourth quarter of 2021 and by 2,743 metres for the
full year. Work remains ahead of forecast. Construction of the
powerline was completed in the fourth quarter of 2021.
Pre-production activities will continue through 2022 into 2023.
Initial production is expected in the second half of 2023. Once
completed, Cubiro is expected to provide additional production
flexibility to the Pinos Altos
operations
- At Reyna de Plata, site
preparation activities were complete at the end of the fourth
quarter of 2021. Open pit pre-stripping activities are ongoing and
production is expected in the first half of 2022
La India – Improvement in
Leach Kinetics Drives Strong Gold Production; Regional Exploration
Remains Focused on the Chipriona Deposit and Other Sulphide
Opportunities
The 100% owned La India mine in Sonora, Mexico, located approximately 70
kilometres northwest of the Company's Pinos Altos mine, achieved commercial
production in February 2014.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
1,398
|
|
1,657
|
Tonnes of ore processed
per day
|
|
15,196
|
|
18,011
|
Gold grade
(g/t)
|
|
0.76
|
|
0.55
|
Gold production
(ounces)
|
|
24,660
|
|
22,393
|
Production costs per
tonne
|
|
$
|
16
|
|
$
|
10
|
Minesite costs per
tonne
|
|
$
|
15
|
|
$
|
11
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
885
|
|
$
|
740
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
840
|
|
$
|
813
|
Gold production in the fourth quarter of 2021 increased when
compared to the prior-year period primarily due to the delayed
recovery of the ore stacked in the second quarter of 2021 and
gradually irrigated through the second half of the year. The
La India mine also benefited from higher gold grades than
anticipated in the Main Zone deposit in the fourth quarter of
2021.
Production costs per tonne in the fourth quarter of 2021
increased when compared to the prior-year period primarily due to
higher open pit costs resulting from a higher stripping ratio at
the Main Zone, higher cement and cyanide consumption related to the
high clay content of the ore and adjustments to the heap leach
ore. Production costs per ounce in the fourth quarter of 2021
increased when compared to the prior-year period due to the higher
production costs per tonne and the timing of inventory, partially
offset by higher gold grades.
Minesite costs per tonne in the fourth quarter of 2021 increased
when compared to the prior-year period primarily due to reasons for
the increase in production costs per tonne described above.
Total cash costs per ounce in the fourth quarter of 2021 increased
when compared to the prior-year period due to higher minesite costs
per tonne, partially offset by higher gold grades and higher
by-product revenues from higher silver volumes.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
6,018
|
|
5,526
|
Tonnes of ore processed
per day
|
|
16,488
|
|
15,098
|
Gold grade
(g/t)
|
|
0.56
|
|
0.67
|
Gold production
(ounces)
|
|
63,529
|
|
84,974
|
Production costs per
tonne
|
|
$
|
10
|
|
$
|
12
|
Minesite costs per
tonne
|
|
$
|
10
|
|
$
|
12
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
950
|
|
$
|
802
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
939
|
|
$
|
788
|
Gold production in the full year 2021 decreased when compared to
the prior year primarily due to reduced irrigation of the heap
leach starting in March 2021 due to
low local water levels, a slow ramp-up of the heap leach kinetics
following the onset of the rainy season in July 2021 and lower grades, partially offset by
higher ore stacking (in the prior year, the operations were
suspended from April 2, 2020 to
May 18, 2020 as required by the
Decree).
Production costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to the build-up of heap
leach ore inventory resulting from reduced irrigation of the heap
leach from March to June 2021 and by
higher stacking rates. Production costs per ounce in the full
year 2021 increased when compared to the prior year due to lower
gold grades, partially offset by the lower production costs per
tonne for the reasons described above.
Minesite costs per tonne in the full year 2021 decreased when
compared to the prior year primarily due to the build-up of heap
leach ore inventory resulting from reduced irrigation of the heap
leach from March to June 2021 and by
higher stacking rates. Total cash costs per ounce in the full
year 2021 increased when compared to the prior year due to lower
gold production partially offset by lower minesite costs per tonne
for the reasons described above.
Operational Highlights
- In the fourth quarter of 2021, the Company continued with plans
to improve the heap leach kinetics. As a result, the leach kinetics
improved significantly through the period and resulted in gold
production above forecast
- In the fourth quarter of 2021, costs were affected by a higher
stripping ratio than anticipated at the Main Zone and an increase
in cement consumption for the agglomeration process. A study is
underway to evaluate the potential to reduce cement consumption,
replacing it with a binder
- In 2022, ore production will transition from the Main Zone pit,
which is expected to be depleted in the first half of the year, to
the La India pit and the El
Realito pit
Project Highlights
- The La India heap leach pad construction phase III (occupying
the now exhausted North Zone pit) was completed in the fourth
quarter of 2021. The heap leach pad phase III provides sufficient
capacity to stack the remaining ore in mineral reserves
- El Realito haulage road
construction was completed in the fourth quarter of 2021.
Pre-stripping of the El Realito
pit is underway and is expected to be completed early in the third
quarter of 2022
Chipriona – Potential to Develop a Sulphide Project in the La
India Mining Camp
In regional exploration at La India during 2021, the Company
continued its program of infill and step-out drilling of the gold-
and silver-rich Chipriona polymetallic sulphide deposit and
associated mineralized veins within the 3.2-kilometre-long
Chipriona structural corridor as well as other sulphide targets
near the La India oxide gold operations. The Chipriona
deposit is located approximately one kilometre north of the La
India mine.
The Company drilled 75 holes totaling 18,377 metres at Chipriona
during 2021 to infill mineral resources, upgrade the block model
categories and grow mineral resources inside the current pit
design. The continued intersection of breccias displaying
polymetallic mineralization confirmed the lateral and down-dip
projections of the mineralized structures that range between 10 and
20 metres wide and demonstrated further potential for mineral
resources conversion.
Due to the success in conversion and step-out drilling at
Chipriona in 2021, the Company reported a significant increase in
indicated mineral resources at year-end 2021 and confirmed the
high-grade silver values that typify the Chipriona sulphide deposit
in contrast to the traditional low-grade oxide ore of the La India
heap-leach operations.
At December 31, 2021, the
Chipriona open pit deposit hosted indicated mineral resources of
260,000 ounces of gold, 18.0 million ounces of silver and 51,000
tonnes of zinc (6.4 million tonnes grading 1.26 g/t gold, 87.3 g/t
silver and 0.80% zinc) and inferred mineral resources of 130,000
ounces of gold, 19.3 million ounces of silver and 54,000 tonnes of
zinc (6.8 million tonnes grading 0.59 g/t gold, 87.8 g/t silver and
0.79% zinc).
The significant polymetallic mineralization being intersected
near surface at Chipriona over substantial widths continues to
suggest the potential for bulk mining of lower-grade mineralization
in stockwork zones that surround high-grade vein and breccia
structures.
In 2022, exploration will continue around the La India and
Chipriona deposits in order to grow the sulphide and polymetallic
ore style of mineralization and is expected to add to total mineral
resources. The Company will continue to conduct metallurgical
test work to assess the viability of building facilities to process
this type of mineralization.
The Company is currently evaluating the potential to mill the
Chipriona and La India sulphides to produce a flotation concentrate
yielding an average of approximately 75,000 ounces of gold
equivalent per year. Given its location, the project would
benefit from the existing La India infrastructure which would
reduce capital expenditures.
Project development and exploration costs for Chipriona in 2022
are estimated at approximately $3.1
million. Exploration will be carried out using a
phased approach. The first phase of drilling will consist of
approximately 8,000 metres of drilling with a primary focus on
infilling the current mineral resources.
Santa Gertrudis – An Open
Pit Oxide and Underground Sulphide Opportunity in a Past Producing
Gold Region
Agnico Eagle acquired its 100% interest in the Santa Gertrudis gold property in November
2017. The 44,215-hectare property is located approximately
180 kilometres north of Hermosillo
in Sonora, Mexico.
The property was the site of historic heap-leach operations that
produced approximately 565,000 ounces of gold at a grade of 2.1 g/t
gold between 1991 and 2000. The property has substantial
surface infrastructure, including pre-stripped pits, haul roads,
water sources and several buildings.
The exploration program at Santa
Gertrudis in 2021 totaled 52,974 metres in 115 holes, with
work focused on expanding the oxide mineral resources, testing new
targets and continuing metallurgical studies. An infill
drilling program to convert the oxide mineral resources into
mineral reserves in the Cristina and Central Trends was also
initiated during the year.
As at December 31, 2021, open-pit
indicated mineral resources were estimated at 4.8 million tonnes
grading 0.64 g/t gold (99,000 contained ounces of gold) and 4.8 g/t
silver (739,000 ounces of silver) with inferred mineral resources
estimated at 23.5 million tonnes grading 1.14 g/t gold (858,000
contained ounces of gold) and 2.1 g/t silver (1.6 million ounces of
silver), while underground inferred mineral resources totaled 7.3
million tonnes grading 3.5 g/t gold (821,000 contained ounces of
gold) and 18.3 g/t silver (4.3 million ounces of silver).
Exploration drilling during the fourth quarter at the Amelia
deposit resulted in improved geological and structural modelling
that has allowed for the projection of high-grade structures at
depth approximately 120 metres below the mineral resources defined
at year-end 2021.
At the Santa Teresa oxide
deposit, located 3.2 kilometres south of the Amelia deposit, an
initial inferred mineral resource was estimated at 2.0 million
tonnes grading 1.04 g/t gold (65,900 ounces of gold) as at
December 31, 2021, and is included in
the above open-pit mineral resources at Santa Gertrudis.
New high-grade sulphide mineralization was encountered at the
Centauro deposit under the historical oxide pits approximately 100
metres from previously reported hole SGE21-477 that returned 5.8
g/t gold over 15.0 metres at 252 metres depth. The results
confirm the potential to make additional discoveries similar to the
Amelia deposit where high grade "feeder-type" structures are
located below historical shallow oxide deposits.
During 2022, the exploration plan at Santa Gertrudis is to further explore
high-grade mineral resources extensions, drill new targets, and
complete the conversion drilling in the remaining oxide
resources.
The Company is currently evaluating a potential production
scenario at Santa Gertrudis that
utilizes a heap leach for lower-grade mineralization and a mill
facility to process higher-grade oxide and sulphide ore. The
Company believes that the Santa
Gertrudis project has the potential to be a similar size
operation to La India, with average annual production of
approximately 100,000 to 125,000 ounces of gold. The initial
capital costs could be reduced by using the existing Creston
Mascota crusher and processing plant.
Project development and exploration costs for Santa Gertrudis in 2022 are estimated at
approximately $19.0 million.
Minesite exploration includes $13.2
million for approximately 35,500 metres of drilling focused
on expanding the mineral resources and testing extensions of
high-grade structures such as the Amelia deposit and exploring new
targets, and $3.5 million for
approximately 16,500 metres of drilling, of which approximately 70%
will be for infilling open pit deposits. Another $2.3 million are expected to be spent on internal
studies and metallurgical work.
KIRKLAND LAKE GOLD LTD. –
FOURTH QUARTER AND FULL YEAR 2021 OPERATIONAL HIGHLIGHTS
On January 17, 2022, Kirkland Lake
Gold announced record quarterly and full-year production for the
fourth quarter of 2021 and full-year of 2021, respectively.
- In the fourth quarter of 2021, production totaled 380,472
ounces of gold driven by record quarterly production at the Detour
Lake mine of 210,980 ounces and a 33% increase in production at the
Macassa mine to 61,336 ounces of gold compared to the prior year
period.
- The record 1,432,616 ounces of consolidated gold production for
the full year 2021 was 5% higher than the 1,369,652 ounces of gold
production for the prior year
|
Q4
2021
|
Q4
2020
|
FY
2021
|
FY
2020
|
Detour Lake
1
|
|
|
|
|
Ore Milled
(tonnes)
|
6,303,150
|
5,829,230
|
24,084,722
|
21,091,938
|
Grade (g/t
Au)
|
1.14
|
0.89
|
1
|
0.83
|
Recovery (%)
|
91.4
|
91.8
|
91.7
|
91.3
|
Gold Production
(ounces)
|
210,980
|
153,143
|
712,824
|
516,757
|
Fosterville
|
|
|
|
|
Ore Milled
(tonnes)
|
153,124
|
183,635
|
677,899
|
593,343
|
Grade (g/t
Au)
|
22.3
|
28.1
|
23.7
|
33.9
|
Recovery (%)
|
98.6
|
98.9
|
98.6
|
98.9
|
Gold Production
(ounces)
|
108,156
|
164,008
|
509,601
|
640,467
|
Macassa
|
|
|
|
|
Ore Milled
(tonnes)
|
89,772
|
74,353
|
333,386
|
312,758
|
Grade (g/t
Au)
|
21.6
|
22.4
|
20
|
18.6
|
Recovery (%)
|
98.2
|
97.7
|
98.1
|
97.7
|
Gold Production
(ounces)
|
61,336
|
52,283
|
210,192
|
183,038
|
Holt Complex
2
|
|
|
|
|
Ore Milled
(tonnes)
|
-
|
-
|
-
|
215,318
|
Grade (g/t
Au)
|
-
|
-
|
-
|
4.5
|
Recovery (%)
|
-
|
-
|
-
|
93.6
|
Gold Production
(ounces)
|
-
|
-
|
-
|
29,390
|
Total Consolidated
Production (ounces)3
|
380,472
|
369,434
|
1,432,616
|
1,369,652
|
Total Consolidated Gold
Sales (ounces)
|
385,850
|
371,009
|
1,430,554
|
1,388,944
|
|
|
|
|
|
1) The Detour Lake Mine
was acquired by Kirkland Lake Gold on January 31, 2020. Full Year
2020 production represents output from that date to December 31,
2020.
|
2) The Holloway Mine, a
component of Holt Complex, was placed on care and maintenance in
March 2020 with no plans for a resumption of operations. The
remainder of the Holt Complex was placed on temporary suspension
effective April 2, 2020 as part of the Company's COVID-19 response.
In July 2020, the Company announced that operations at the Holt
Complex would remain suspended until further notice.
|
3) Production numbers
may not add to totals due to rounding.
|
For further details, refer to the Kirkland Lake Gold news
release on January 17, 2022.
About Agnico Eagle
The new Agnico Eagle is a senior Canadian gold mining company,
producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality
exploration and development projects in these countries as well as
in the United States and
Colombia. Agnico Eagle is a
partner of choice within the mining industry, recognized globally
for its leading environmental, social and governance practices. The
Company was founded in 1957 and has consistently created value for
its shareholders, declaring a cash dividend every year since
1983.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance
measures, including "total cash costs per ounce", "all-in
sustaining costs per ounce", "minesite costs per tonne", "adjusted
net income", "adjusted net income per share", "realized prices",
"sustaining capital expenditures", "development capital
expenditures" and "operating margin" that are not standardized
measures under IFRS. These measures may not be comparable to
similar measures reported by other gold mining companies. For
a reconciliation of these measures to the most directly comparable
financial information reported in the consolidated financial
statements prepared in accordance with IFRS, other than adjusted
net income, see "Reconciliation of Non-GAAP Financial Performance
Measures" below.
The total cash costs per ounce of gold produced is reported on
both a by-product basis (deducting by-product metal revenues from
production costs) and co-product basis (without deducting
by-product metal revenues). The total cash costs per ounce of
gold produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income (loss) for by-product revenues, inventory production costs,
operational care and maintenance costs due to COVID-19, realized
gains and losses on hedges of production costs and other
adjustments, which include smelting, refining and marketing charges
and then dividing by the number of ounces of gold produced
excluding production prior to the achievement of commercial
production. Certain line items such as operational care and
maintenance costs due to COVID-19 and realized gains and losses on
hedges of production costs were previously classified as "other
adjustments" and have now been disclosed separately to provide
additional detail on the reconciliation, allowing investors to
better understand the impacts of such events on the cash operating
costs per ounce and minesite cost per tonne. 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, and
believes it is helpful to investors so they can, understand and
monitor the performance of the Company's mining operations.
The Company believes that total cash costs per ounce is useful to
help investors understand the costs associated with production gold
and the economics of gold mining. 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 and investors to assess a mine's cash-generating
capabilities at various gold prices. Management is aware, and
investors should note, that these per ounce measures of performance
can be affected by fluctuations in 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, and investors should also consider,
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. Investors
should note that total cash costs per ounce are not reflective of
all cash expenditures as they do not include income tax payments,
interest costs or dividend payments. This measure also does
not include depreciation or amortization.
Agnico Eagle's primary business is gold production and the focus
of its current operations and future development is on maximizing
returns from gold production, with other metal production being
incidental to the gold production process. Accordingly, all metals
other than gold are considered by-products.
Total cash costs per ounce of gold produced is reported on a
by-product basis because (i) the majority of the Company's revenues
are from gold (ii) the Company mines ore, which contains gold,
silver, zinc, copper and other metals, (iii) it is not possible to
specifically assign all costs to revenues from the gold, silver,
zinc, copper and other metals the Company produce (iv) it is a
method used by management and the Board to monitor operations, and
v) many other gold producers disclose similar measures on a
by-product rather than a co-product basis. Investors should
also consider these measures in conjunction with other data
prepared in accordance with IFRS.
All-in sustaining costs ("AISC") per ounce of gold produced on a
by-product basis is calculated as the aggregate of total cash costs
on a by-product basis, sustaining capital expenditures (including
capitalized exploration), general and administrative expenses
(including stock options), lease payments related to sustaining
assets and reclamation expenses, and then dividing by the number of
ounces of gold produced (excluding production prior to the
achievement of commercial production). These additional costs
reflect the additional expenditures that are required to be made to
maintain current production levels. The AISC per ounce
of gold produced on a co-product basis is calculated in the same
manner as the AISC per ounce of gold produced on a by-product
basis, except that the total cash costs on a co-product basis are
used, meaning no adjustment is made for by-product metal
revenues. AISC per ounce seeks to reflect total sustaining
expenditures of producing and selling an ounce of gold while
maintaining current operations. Management is aware, and
investors should note, that these per ounce measures of performance
can be affected by fluctuations in foreign exchange rates and, in
the case of total cash costs per ounce and AISC of gold produced on
a by-product basis, by-product metal prices. Management
compensates for these inherent limitations by using these measures
in conjunction with minesite costs per tonne as well as other data
prepared in accordance with IFRS. Investors should note that
AISC per ounce is not reflective of all cash expenditures as it
does not include income tax payments, interest costs or dividend
payments. This measure also does not include depreciation or
amortization.
The World Gold Council ("WGC") is a non-regulatory market
development organization for the gold industry. Although the
WGC is not a mining industry regulatory organization, it has worked
closely with its member companies to develop relevant non-GAAP
measures. The Company follows the guidance on all-in
sustaining costs released by the WGC in November 2018.
Adoption of the AISC metric is voluntary and, notwithstanding the
Company's adoption of the WGC's guidance, AISC per ounce of gold
produced reported by the Company may not be comparable to data
reported by other gold mining companies. The Company believes
that this measure provides helpful information about operating
performance. However, this non-GAAP measure should be
considered together with other data prepared in accordance with
IFRS as it is not necessarily indicative of operating costs or cash
flow measures prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income (loss)
for inventory production costs, operational care and maintenance
costs due to COVID-19, and other adjustments, and then dividing by
tonnage of ore processed (excluding the tonnage processed prior to
the achievement of commercial production). 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, and investors should note, that minesite costs per tonne
is useful to investors in providing 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, and
investors should note, that this per tonne measure of performance
can be affected by fluctuations in processing levels. This
inherent limitation may be partially mitigated by using this
measure in conjunction with production costs prepared in accordance
with IFRS.
Adjusted net income and adjusted net income per share are
calculated by adjusting the net income as recorded in the
consolidated statements of income (loss) for the effects of certain
items that the Company believes are not reflective of the Company's
underlying performance for the reporting period, including foreign
currency translation gains or losses, realized and unrealized gains
or losses on derivative financial instruments, impairment loss
charges and reversals environmental remediation, income and mining
taxes adjustments as well as other non-recurring, unusual items
(which includes changes in estimates of asset retirement
obligations at closed sites and gains and losses on the disposal of
assets). Adjusted net income per share is calculated by
dividing adjusted net income by the number of shares outstanding on
a basic and diluted basis. The Company believes that these
generally accepted industry measures allow for the evaluation of
the results of continuing operations and are useful in making
comparisons between periods. Adjusted net income and adjusted
net income per share are intended to provide investors with
information about the Company's continuing income generating
capabilities. Management uses this measure to, and believes
it is helpful to investors so they can, understand and monitor for
the operating performance of the Company in conjunction with other
data prepared in accordance with IFRS.
Operating margin is not a recognized measure under IFRS and this
data may not be comparable to data presented by other gold
producers. The Company believes that operating margin is a
useful measure that represents the operating performance of its
individual mines associated with the ongoing production and sale of
gold and by-product metals without allocating company-wide overhead
including exploration and corporate development expenses,
amortization of property, plant and mine development, general and
administrative expenses, finance costs, gain and losses on
derivative financial instruments, environmental remediation costs,
foreign currency translation gains and losses, other expenses and
income and mining tax expenses. This measure is calculated by
deducting production costs from revenue from mining operations. In
order to reconcile operating margin to net income as recorded in
the consolidated financial statements, the company adds the
following items to the operating margin: Income and mining taxes
expense; other expenses (income); foreign currency translation
(gain) loss; gain (loss) on derivative financial instruments;
finance costs; general and administrative expenses; amortization of
property, plant and mine development; exploration and corporate
development expenses; and impairment losses (reversals).
Management uses this measure internally to plan and forecast future
operating results. This measure is intended to provide
investors with additional information about the Company's
underlying operating results and should be evaluated in conjunction
with other data prepared in accordance with IFRS.
Realized prices are calculated as revenue from mining operations
by metal divided by the volume of metal sold. Management uses
realized prices to, and believes is helpful to investors so they
can, evaluate sales revenue in each reporting period.
Sustaining capital expenditures are expenditures incurred during
the production phase to sustain and maintain the existing assets so
they can achieve constant expected levels of production, from which
the company will derive economic benefits, this includes
expenditure for assets to retain their existing productive capacity
as well as to enhance performance and reliability of the
operations. Development capital expenditures represents the
spending at new projects and/or expenditure at existing operations
that is undertaken with the intention to increase production levels
or mine life above the current plans. Management uses these
measures in the capital allocation process and to assess the
effectiveness of its investments, management believes these
measures are useful so investors can assess the purpose and
effectiveness of the capital expenditures in each reporting
period. The classification between sustaining and development
capital expenditures does not have a standardized definition in
accordance with IFRS and other companies may classify expenditures
in a different manner.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating foreign exchange rates and
metal prices. This news release also contains information as
to estimated future total cash costs per ounce, AISC per ounce and
minesite costs per tonne. The estimates are based upon the
total cash costs per ounce, AISC per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at its mines
and projects and, consistent with the reconciliation of these
actual costs referred to above, do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time as each project is developed and
mined. It is therefore not practicable to reconcile these
forward-looking non-GAAP financial measures to the most comparable
IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
February 23, 2022. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". All statements, other than
statements of historical fact, that address circumstances, events,
activities or developments that could, or may or will occur are
forward looking statements. When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include, without limitation:
statements regarding the impact of the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19 on the Company's
future operations, including its employees and overall business;
the Company's forward-looking guidance, including metal production,
estimated ore grades, recovery rates, project timelines, drilling
results, life of mine estimates, total cash costs per ounce, AISC
per ounce, minesite costs per tonne, other expenses and cash flows;
statements relating to the expected outcomes of the Merger
including synergies arising therefrom and their expected quantum
and timing; the estimated timing and conclusions of technical
studies and evaluations; the methods by which ore will be extracted
or processed; statements concerning the Company's expansion plans
at Kittila, Meliadine Phase 2, the Amaruq underground project and
the Odyssey project, including the timing, funding, completion and
commissioning thereof and production therefrom; statements about
the Company's plans at the Hope Bay mine; statements concerning
other expansion projects, recovery rates, mill throughput,
optimization and projected exploration, including costs and other
estimates upon which such projections are based; statements
regarding timing and amounts of capital expenditures, other
expenditures and other cash needs, and expectations as to the
funding thereof; estimates of future mineral reserves, mineral
resources, mineral production and sales; the projected development
of certain ore deposits, including estimates of exploration,
development and production and other capital costs and estimates of
the timing of such exploration, development and production or
decisions with respect to such exploration, development and
production; statements regarding anticipated cost inflation and its
effect on the Company's costs; estimates of mineral reserves and
mineral resources and the effect of drill results on future mineral
reserves and mineral resources; statements regarding the Company's
ability to obtain the necessary permits and authorizations in
connection with its proposed or current exploration, development
and mining operations and the anticipated timing thereof;
statements regarding anticipated future exploration; the
anticipated timing of events with respect to the Company's mine
sites; statements regarding the sufficiency of the Company's cash
resources; statements regarding future activity with respect to the
Company's unsecured revolving bank credit facility; future dividend
amounts and payment dates; and statements regarding anticipated
trends with respect to the Company's operations, exploration and
the funding thereof. Such statements reflect the Company's
views as at the date of this news release and are subject to
certain risks, uncertainties and assumptions, and undue reliance
should not be placed on such statements. Forward-looking
statements are necessarily based upon a number of factors and
assumptions that, while considered reasonable by Agnico Eagle as of
the date of such statements, are inherently subject to significant
business, economic and competitive uncertainties and
contingencies. The material factors and assumptions used in
the preparation of the forward looking statements contained herein,
which may prove to be incorrect, include, but are not limited to,
the assumptions set forth herein and in management's discussion and
analysis ("MD&A") and the Company's Annual Information Form
("AIF") for the year ended December 31,
2020 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2020 ("Form 40-F") filed
with the U.S. Securities and Exchange Commission (the "SEC") as
well as: that governments, the Company or others do not take
additional measures in response to the COVID-19 pandemic or
otherwise that, individually or in the aggregate, materially affect
the Company's ability to operate its business; that cautionary
measures taken in connection with the COVID-19 pandemic do not
affect productivity; that measures taken relating to, or other
effects of, the COVID-19 pandemic do not affect the Company's
ability to obtain necessary supplies and deliver them to its mine
sites; that there are no significant disruptions affecting
operations; that production, permitting, development, expansion and
the ramp up of operations at each of Agnico Eagle's properties
proceeds on a basis consistent with current expectations and plans;
that the relevant metal prices, foreign exchange rates and prices
for key mining and construction supplies will be consistent with
Agnico Eagle's expectations; the ability to realize the anticipated
benefits of the Merger or implementing the business plan for the
combined company, including as a result of difficulty in
integrating the businesses of the companies involved (including the
retention of key employees); the ability to realize synergies and
cost savings at the times, and to the extent, anticipated; the
potential impact on exploration activities; the potential impact of
the consummation of the Merger on relationships, including with
regulatory bodies, employees, suppliers, customers, competitors,
First Nations and other key stakeholders; that Agnico Eagle's
current estimates of mineral reserves, mineral resources, mineral
grades and metal recovery are accurate; that there are no material
delays in the timing for completion of ongoing growth projects;
that seismic activity at the Company's operations at LaRonde,
Goldex and other properties is as expected by the Company; that the
Company's current plans to optimize production are successful; and
that there are no material variations in the current tax and
regulatory environment. Many factors, known and unknown,
could cause the actual results to be materially different from
those expressed or implied by such forward looking
statements. Such risks include, but are not limited to: the
extent and manner to which COVID-19, and measures taken by
governments, the Company or others to attempt to reduce the spread
of COVID-19, may affect the Company, whether directly or through
effects on employee health, workforce productivity and availability
(including the ability to transport personnel to the Meadowbank
Complex, Meliadine mine and the Hope Bay mine which operate as
fly-in/fly-out camps), travel restrictions, contractor
availability, supply availability, ability to sell or deliver gold
dore bars or concentrate, availability of insurance and the cost
thereof, the ability to procure inputs required for the Company's
operations and projects or other aspects of the Company's business;
uncertainties with respect to the effect on the global economy
associated with the COVID-19 pandemic and measures taken to reduce
the spread of COVID-19, any of which could negatively affect
financial markets, including the trading price of the Company's
shares and the price of gold, and could adversely affect the
Company's ability to raise capital; the ability to realize the
anticipated benefits of the Merger or implementing the business
plan for new Agnico Eagle, including as a result of a delay or
difficulty in integrating the businesses of the companies involved
(including the retention of key employees); the volatility of
prices of gold and other metals; uncertainty of mineral reserves,
mineral resources, mineral grades and mineral recovery estimates;
uncertainty of future production, project development, capital
expenditures and other costs; foreign exchange rate fluctuations;
financing of additional capital requirements; cost of exploration
and development programs; seismic activity at the Company's
operations, including the LaRonde Complex and Goldex mine; mining
risks; community protests, including by First Nations groups; risks
associated with foreign operations; governmental and environmental
regulation; the volatility of the Company's stock price; and risks
associated with the Company's currency, fuel and by-product metal
derivative strategies. For a more detailed discussion of such
risks and other factors that may affect the Company's ability to
achieve the expectations set forth in the forward-looking
statements contained in this news release, see the AIF and MD&A
filed on SEDAR at www.sedar.com and included in the Form 40-F filed
on EDGAR at www.sec.gov, the risks described or referred to under
the caption "Risk Factors Relating to the Combined Company" in
Agnico Eagle and Kirkland Lake Gold's Joint Management Information
Circular dated October 29, 2021 filed
on SEDAR and with the SEC, as well as the Company's other filings
with the Canadian securities regulators and the SEC. Other
than as required by law, the Company does not intend, and does not
assume any obligation, to update these forward-looking
statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI
43-101").
For United States reporting
purposes, the SEC has adopted amendments to its disclosure rules
(the "SEC Modernization Rules") to modernize the mining property
disclosure requirements for issuers whose securities are registered
with the SEC under the United States Securities Exchange Act of
1934, as amended (the "Exchange Act"), which became effective
February 25, 2019. The SEC
Modernization Rules more closely align the SEC's disclosure
requirements and policies for mining properties with current
industry and global regulatory practices and standards, including
NI 43-101, and replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7. Issuers were required to comply with the
SEC Modernization Rules in their first fiscal year beginning on or
after January 1, 2021, though
Canadian issuers that report in the
United States using the Multijurisdictional Disclosure
System ("MJDS") may still use NI 43-101 rather than the SEC
Modernization Rules when using the SEC's MJDS registration
statement and annual report forms. Accordingly, mineral
reserve and mineral resource information contained in this news
release may not be comparable to similar information disclosed by
United States companies.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral
resources." In addition, the SEC has amended definitions of
"proven mineral reserves" and "probable mineral reserves" in the
SEC Modernization Rules, with definitions that are substantially
similar to those used in NI 43-101.
United States investors are
cautioned that while the SEC now recognizes "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that any part or all of the
mineral deposits in these categories will ever be converted into a
higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Under Canadian
regulations, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in
limited circumstances. Investors are cautioned not to
assume that any "measured mineral resources", "indicated mineral
resources", or "inferred mineral resources" that the Company
reports in this news release are or will be economically or legally
mineable.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all
of an inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in this
news release are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals
contained in mineral reserves in its calculation of contained
ounces and mineral reserves are not reported as a subset of mineral
resources.
Scientific and Technical Information
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Daniel Paré, P.Eng., Vice-President
Operations – Eastern Canada;
relating to Nunavut operations has
been approved by Dominique Girard, Eng., Senior Vice-President,
Operations – Canada and
Europe; relating to Finland operations has been approved by
Francis Brunet, Eng., Corporate Director, Business Strategy;
relating to Southern Business operations has been approved by Marc
Legault, Eng., Senior Vice-President, Operations – U.S.A. & Latin
America; relating to exploration at legacy Agnico Eagle
assets has been approved by Guy Gosselin, Eng. and P.Geo., Senior
Vice-President, Exploration, each of whom is a "Qualified Person"
for the purposes of NI 43-101.
The scientific and technical information relating to Agnico
Eagle's mineral reserves and mineral resources contained herein
(other than the Canadian Malartic mine) has been approved by
Dyane Duquette, P.Geo., Corporate
Director, Reserves Development of the Company; relating to mineral
reserves and mineral resources at the Canadian Malartic mine and
other Partnership projects such as the Odyssey project, has been
approved by Sylvie Lampron, Eng., Senior Project Mine Engineer at
Canadian Malartic Corporation (for
engineering) and Pascal Lehouiller,
P.Geo., Senior Resource Geologist at Canadian Malartic Corporation (for geology), each of whom
is a "Qualified Person" for the purposes of NI 43-101.
The scientific and technical information related to mines and
properties that were held by Kirkland Lake Gold prior to the Merger
in this news release have been reviewed and approved by
Natasha Vaz, P.Eng., Chief Operating
Officer and Eric Kallio, P.Geo,
Senior Vice-President, Exploration. Ms. Vaz and Mr. Kallio are
"qualified persons" as defined in National Instrument 43-101 and
have reviewed and approved disclosure of the technical information
and data in this news release.
Detailed Mineral Reserve and Mineral Resource Data (as at
December 31, 2021) for Properties
Held by Agnico Eagle prior to the Merger
|
|
|
MINERAL
RESERVES
|
|
|
|
As of December 31,
2021
|
OPERATION /
PROJECT
|
PROVEN
|
PROBABLE
|
PROVEN &
PROBABLE
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
LaRonde
|
Underground
|
100%
|
3,684
|
4.95
|
586
|
11,616
|
6.33
|
2,364
|
15,301
|
6.00
|
2,950
|
LaRonde Zone
5
|
Underground
|
100%
|
5,333
|
2.08
|
357
|
7,451
|
2.07
|
495
|
12,784
|
2.07
|
852
|
LaRonde Complex
Total
|
|
9,018
|
3.25
|
943
|
19,067
|
4.66
|
2,859
|
28,085
|
4.21
|
3,802
|
Canadian
Malartic
|
Open Pit
|
50%
|
21,466
|
0.84
|
580
|
28,758
|
1.28
|
1,188
|
50,225
|
1.09
|
1,767
|
Goldex
|
Underground
|
100%
|
668
|
3.53
|
76
|
18,701
|
1.53
|
922
|
19,369
|
1.60
|
998
|
Akasaba West
|
Open Pit
|
100%
|
-
|
|
-
|
5,419
|
0.84
|
147
|
5,419
|
0.84
|
147
|
Amaruq
|
Open Pit
|
100%
|
1,325
|
1.63
|
70
|
15,992
|
3.85
|
1,981
|
17,317
|
3.68
|
2,051
|
Amaruq
|
Underground
|
100%
|
2
|
4.53
|
0
|
3,236
|
5.21
|
542
|
3,238
|
5.20
|
542
|
Amaruq
Total
|
|
|
1,327
|
1.63
|
70
|
19,228
|
4.08
|
2,523
|
20,555
|
3.92
|
2,593
|
Meadowbank
|
Open Pit
|
100%
|
34
|
2.34
|
3
|
-
|
|
-
|
34
|
2.34
|
3
|
Meadowbank Complex
Total
|
|
1,361
|
1.65
|
72
|
19,228
|
4.08
|
2,523
|
20,589
|
3.92
|
2,595
|
Meliadine
|
Open Pit
|
100%
|
437
|
3.56
|
50
|
5,085
|
4.79
|
782
|
5,522
|
4.69
|
832
|
Meliadine
|
Underground
|
100%
|
1,145
|
7.28
|
268
|
12,495
|
6.35
|
2,553
|
13,640
|
6.43
|
2,821
|
Meliadine
Total
|
|
|
1,582
|
6.25
|
318
|
17,580
|
5.90
|
3,335
|
19,162
|
5.93
|
3,653
|
Hope Bay
|
Underground
|
100%
|
78
|
6.03
|
15
|
15,874
|
6.50
|
3,319
|
15,952
|
6.50
|
3,334
|
Upper Beaver
|
Underground
|
100%
|
-
|
|
-
|
7,992
|
5.43
|
1,395
|
7,992
|
5.43
|
1,395
|
Hammond Reef
|
Open Pit
|
100%
|
-
|
|
-
|
123,473
|
0.84
|
3,323
|
123,473
|
0.84
|
3,323
|
Kittila
|
Underground
|
100%
|
1,080
|
3.85
|
133
|
26,754
|
4.26
|
3,661
|
27,833
|
4.24
|
3,794
|
Pinos Altos
|
Open Pit
|
100%
|
-
|
|
-
|
3,066
|
1.24
|
122
|
3,066
|
1.24
|
122
|
Pinos Altos
|
Underground
|
100%
|
3,236
|
2.35
|
245
|
5,205
|
2.33
|
390
|
8,441
|
2.34
|
635
|
Pinos Altos
Total
|
|
3,236
|
2.35
|
245
|
8,271
|
1.93
|
512
|
11,507
|
2.05
|
757
|
La India
|
Open Pit
|
100%
|
212
|
0.36
|
2
|
7,133
|
0.67
|
155
|
7,345
|
0.67
|
157
|
Total
|
|
|
38,700
|
1.92
|
2,385
|
298,250
|
2.43
|
23,339
|
336,950
|
2.37
|
25,724
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
LaRonde
|
Underground
|
100%
|
3,684
|
16.45
|
1,948
|
11,616
|
20.81
|
7,773
|
15,301
|
19.76
|
9,721
|
Pinos Altos
|
Open Pit
|
100%
|
-
|
|
-
|
3,066
|
35.42
|
3,491
|
3,066
|
35.42
|
3,491
|
Pinos Altos
|
Underground
|
100%
|
3,236
|
50.96
|
5,301
|
5,205
|
51.09
|
8,549
|
8,441
|
51.04
|
13,850
|
Pinos Altos
Total
|
|
3,236
|
50.96
|
5,301
|
8,271
|
45.28
|
12,040
|
11,507
|
46.87
|
17,341
|
La India
|
Open Pit
|
100%
|
212
|
0.69
|
5
|
7,133
|
3.31
|
760
|
7,345
|
3.24
|
765
|
Total
|
|
|
7,132
|
31.64
|
7,254
|
27,020
|
23.68
|
20,573
|
34,152
|
25.34
|
27,827
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
tonnes
Cu
|
000
Tonnes
|
%
|
tonnes
Cu
|
000
Tonnes
|
%
|
tonnes
Cu
|
LaRonde
|
Underground
|
100%
|
3,684
|
0.21
|
7,677
|
11,616
|
0.27
|
31,597
|
15,301
|
0.26
|
39,274
|
Akasaba West
|
Open Pit
|
100%
|
-
|
|
-
|
5,419
|
0.48
|
25,895
|
5,419
|
0.48
|
25,895
|
Upper Beaver
|
Underground
|
100%
|
-
|
|
-
|
7,992
|
0.25
|
19,980
|
7,992
|
0.25
|
19,980
|
Total
|
|
|
3,684
|
0.21
|
7,677
|
25,028
|
0.31
|
77,471
|
28,712
|
0.30
|
85,148
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
tonnes
Zn
|
000
Tonnes
|
%
|
tonnes
Zn
|
000
Tonnes
|
%
|
tonnes
Zn
|
LaRonde
|
Underground
|
100%
|
3,684
|
0.67
|
24,861
|
11,616
|
1.24
|
144,400
|
15,301
|
1.11
|
169,262
|
Total
|
|
|
3,684
|
0.67
|
24,861
|
11,616
|
1.24
|
144,400
|
15,301
|
1.11
|
169,262
|
|
|
|
MINERAL
RESOURCES
|
|
|
|
As of December 31,
2021
|
OPERATION /
PROJECT
|
MEASURED
|
INDICATED
|
MEASURED &
INDICATED
|
INFERRED
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
7,072
|
2.58
|
587
|
7,072
|
2.58
|
587
|
5,271
|
3.86
|
654
|
LaRonde Zone
5
|
Underground
|
100%
|
-
|
|
-
|
10,535
|
1.95
|
660
|
10,535
|
1.95
|
660
|
12,846
|
2.97
|
1,227
|
LaRonde Complex
Total
|
|
-
|
|
-
|
17,607
|
2.20
|
1,248
|
17,607
|
2.20
|
1,248
|
18,117
|
3.23
|
1,881
|
Canadian
Malartic
|
Open Pit
|
50%
|
130
|
0.72
|
3
|
425
|
0.60
|
8
|
556
|
0.63
|
11
|
2,647
|
0.77
|
65
|
Canadian
Malartic
|
Underground
|
50%
|
-
|
|
-
|
1,749
|
1.49
|
84
|
1,749
|
1.49
|
84
|
144
|
1.50
|
7
|
Canadian Malartic
Total
|
|
130
|
0.72
|
3
|
2,174
|
1.31
|
92
|
2,304
|
1.28
|
95
|
2,790
|
0.80
|
72
|
Odyssey
|
Underground
|
50%
|
-
|
|
-
|
1,075
|
1.92
|
66
|
1,075
|
1.92
|
66
|
13,382
|
2.07
|
891
|
East
Malartic
|
Underground
|
50%
|
-
|
|
-
|
5,539
|
2.04
|
364
|
5,539
|
2.04
|
364
|
42,635
|
1.92
|
2,639
|
East Gouldie
|
Underground
|
50%
|
-
|
|
-
|
5,974
|
3.88
|
745
|
5,974
|
3.88
|
745
|
30,825
|
3.07
|
3,046
|
Goldex
|
Underground
|
100%
|
12,360
|
1.86
|
739
|
24,224
|
1.41
|
1,097
|
36,584
|
1.56
|
1,836
|
24,513
|
1.56
|
1,227
|
Akasaba West
|
Open Pit
|
100%
|
-
|
|
-
|
4,209
|
0.64
|
86
|
4,209
|
0.64
|
86
|
-
|
|
-
|
Zulapa
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
391
|
3.14
|
39
|
Meadowbank
|
Open Pit
|
100%
|
-
|
|
-
|
1,145
|
2.46
|
90
|
1,145
|
2.46
|
90
|
4
|
2.06
|
0
|
Amaruq
|
Open Pit
|
100%
|
-
|
|
-
|
6,737
|
2.23
|
483
|
6,737
|
2.23
|
483
|
292
|
2.30
|
22
|
Amaruq
|
Underground
|
100%
|
-
|
|
-
|
6,426
|
4.45
|
920
|
6,426
|
4.45
|
920
|
8,239
|
4.49
|
1,188
|
Amaruq
Total
|
|
|
-
|
|
-
|
13,164
|
3.32
|
1,403
|
13,164
|
3.32
|
1,403
|
8,532
|
4.41
|
1,210
|
Meadowbank Complex
Total
|
|
-
|
|
-
|
14,309
|
3.25
|
1,494
|
14,309
|
3.25
|
1,494
|
8,535
|
4.41
|
1,210
|
Meliadine
|
Open Pit
|
100%
|
-
|
|
-
|
4,636
|
3.31
|
493
|
4,636
|
3.31
|
493
|
567
|
4.69
|
86
|
Meliadine
|
Underground
|
100%
|
250
|
4.23
|
34
|
13,133
|
4.07
|
1,720
|
13,383
|
4.08
|
1,754
|
11,141
|
6.16
|
2,207
|
Meliadine
Total
|
|
|
250
|
4.23
|
34
|
17,769
|
3.87
|
2,213
|
18,019
|
3.88
|
2,247
|
11,709
|
6.09
|
2,293
|
Hammond Reef
|
Open Pit
|
100%
|
47,063
|
0.54
|
819
|
86,304
|
0.53
|
1,478
|
133,367
|
0.54
|
2,298
|
-
|
|
-
|
Hope Bay
|
Underground
|
100%
|
-
|
|
-
|
8,779
|
3.43
|
967
|
8,779
|
3.43
|
967
|
10,247
|
5.09
|
1,678
|
Upper Beaver
|
Underground
|
100%
|
-
|
|
-
|
3,636
|
3.45
|
403
|
3,636
|
3.45
|
403
|
8,688
|
5.07
|
1,416
|
AK
Project
|
Underground
|
100%
|
-
|
|
-
|
1,268
|
6.51
|
265
|
1,268
|
6.51
|
265
|
2,373
|
5.32
|
406
|
Anoki-McBean
|
Underground
|
100%
|
-
|
|
-
|
1,868
|
5.33
|
320
|
1,868
|
5.33
|
320
|
2,526
|
4.70
|
382
|
Upper Canada
|
Open Pit
|
100%
|
-
|
|
-
|
2,006
|
1.62
|
104
|
2,006
|
1.62
|
104
|
1,020
|
1.44
|
47
|
Upper Canada
|
Underground
|
100%
|
-
|
|
-
|
8,433
|
2.28
|
618
|
8,433
|
2.28
|
618
|
17,588
|
3.21
|
1,816
|
Upper Canada
Total
|
|
-
|
|
-
|
10,439
|
2.15
|
722
|
10,439
|
2.15
|
722
|
18,608
|
3.11
|
1,863
|
Kittila
|
Open Pit
|
100%
|
-
|
|
-
|
229
|
3.41
|
25
|
229
|
3.41
|
25
|
373
|
3.89
|
47
|
Kittila
|
Underground
|
100%
|
4,447
|
2.59
|
370
|
18,843
|
2.60
|
1,576
|
23,290
|
2.60
|
1,946
|
6,921
|
4.89
|
1,088
|
Kittila
Total
|
|
|
4,447
|
2.59
|
370
|
19,072
|
2.61
|
1,601
|
23,519
|
2.61
|
1,971
|
7,294
|
4.84
|
1,135
|
Kuotko
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
284
|
3.18
|
29
|
Barsele
|
Open Pit
|
55%
|
-
|
|
-
|
3,178
|
1.08
|
111
|
3,178
|
1.08
|
111
|
2,260
|
1.25
|
91
|
Barsele
|
Underground
|
55%
|
-
|
|
-
|
1,158
|
1.77
|
66
|
1,158
|
1.77
|
66
|
13,552
|
2.10
|
914
|
Barsele
Total
|
|
|
-
|
|
-
|
4,335
|
1.27
|
176
|
4,335
|
1.27
|
176
|
15,811
|
1.98
|
1,005
|
Pinos Altos
|
Open Pit
|
100%
|
-
|
|
-
|
1,816
|
0.90
|
52
|
1,816
|
0.90
|
52
|
365
|
1.05
|
12
|
Pinos Altos
|
Underground
|
100%
|
-
|
|
-
|
13,682
|
1.69
|
744
|
13,682
|
1.69
|
744
|
4,642
|
2.14
|
319
|
Pinos Altos
Total
|
|
-
|
|
-
|
15,498
|
1.60
|
797
|
15,498
|
1.60
|
797
|
5,008
|
2.06
|
332
|
La India
|
Open Pit
|
100%
|
4,798
|
0.48
|
75
|
994
|
0.83
|
27
|
5,792
|
0.54
|
101
|
230
|
0.45
|
3
|
Tarachi
|
Open Pit
|
100%
|
-
|
|
-
|
19,290
|
0.58
|
361
|
19,290
|
0.58
|
361
|
242
|
0.52
|
4
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
6,403
|
1.26
|
260
|
6,403
|
1.26
|
260
|
6,831
|
0.59
|
130
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
|
-
|
8,834
|
1.16
|
331
|
8,834
|
1.16
|
331
|
9,628
|
1.13
|
351
|
Santa
Gertrudis
|
Open Pit
|
100%
|
-
|
|
-
|
4,826
|
0.64
|
99
|
4,826
|
0.64
|
99
|
23,494
|
1.14
|
858
|
Santa
Gertrudis
|
Underground
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
7,343
|
3.48
|
821
|
Santa Gertrudis
Total
|
|
-
|
|
-
|
4,826
|
0.64
|
99
|
4,826
|
0.64
|
99
|
30,837
|
1.69
|
1,679
|
Total
|
|
|
69,049
|
0.92
|
2,040
|
284,426
|
1.66
|
15,213
|
353,475
|
1.52
|
17,253
|
271,504
|
2.72
|
23,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
000
Tonnes
|
g/t
|
000 Oz
Ag
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
7,072
|
15.14
|
3,443
|
7,072
|
15.14
|
3,443
|
5,271
|
21.45
|
3,635
|
Pinos Altos
|
Open Pit
|
100%
|
-
|
|
-
|
1,816
|
19.12
|
1,116
|
1,816
|
19.12
|
1,116
|
365
|
27.92
|
328
|
Pinos Altos
|
Underground
|
100%
|
-
|
|
-
|
13,682
|
43.68
|
19,213
|
13,682
|
43.68
|
19,213
|
4,642
|
41.88
|
6,251
|
Pinos Altos
Total
|
|
-
|
|
-
|
15,498
|
40.80
|
20,329
|
15,498
|
40.80
|
20,329
|
5,008
|
40.86
|
6,579
|
La India
|
Open Pit
|
100%
|
4,798
|
2.72
|
419
|
994
|
3.49
|
111
|
5,792
|
2.85
|
531
|
230
|
1.76
|
13
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
6,403
|
87.30
|
17,970
|
6,403
|
87.30
|
17,970
|
6,831
|
87.76
|
19,272
|
El Barqueño
Silver
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
4,393
|
124.06
|
17,523
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
|
-
|
8,834
|
4.73
|
1,343
|
8,834
|
4.73
|
1,343
|
9,628
|
16.86
|
5,218
|
Santa
Gertrudis
|
Open Pit
|
100%
|
-
|
|
-
|
4,826
|
4.77
|
739
|
4,826
|
4.77
|
739
|
23,494
|
2.12
|
1,600
|
Santa
Gertrudis
|
Underground
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
7,343
|
18.32
|
4,324
|
Total
|
|
|
4,798
|
2.72
|
419
|
43,627
|
31.32
|
43,936
|
48,425
|
28.49
|
44,355
|
62,197
|
29.09
|
58,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
000
Tonnes
|
%
|
Tonnes
Cu
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
7,072
|
0.11
|
7,957
|
7,072
|
0.11
|
7,957
|
5,271
|
0.31
|
16,303
|
Akasaba West
|
Open Pit
|
100%
|
-
|
|
-
|
4,209
|
0.38
|
16,075
|
4,209
|
0.38
|
16,075
|
-
|
|
-
|
Upper Beaver
|
Underground
|
100%
|
-
|
|
-
|
3,636
|
0.14
|
5,135
|
3,636
|
0.14
|
5,135
|
8,688
|
0.20
|
17,284
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
6,403
|
0.14
|
8,672
|
6,403
|
0.14
|
8,672
|
6,831
|
0.14
|
9,781
|
El Barqueño
Silver
|
Open Pit
|
100%
|
-
|
|
-
|
-
|
|
-
|
-
|
|
-
|
4,393
|
0.04
|
1,854
|
El Barqueño
Gold
|
Open Pit
|
100%
|
-
|
|
-
|
8,834
|
0.19
|
16,400
|
8,834
|
0.19
|
16,400
|
9,628
|
0.22
|
21,152
|
Total
|
|
|
-
|
|
-
|
30,154
|
0.18
|
54,239
|
30,154
|
0.18
|
54,239
|
34,810
|
0.19
|
66,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
Mining
Method
|
Ownership
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
000
Tonnes
|
%
|
Tonnes
Zn
|
LaRonde
|
Underground
|
100%
|
-
|
|
-
|
7,072
|
0.74
|
52,043
|
7,072
|
0.74
|
52,043
|
5,271
|
1.13
|
59,489
|
Chipriona
|
Open Pit
|
100%
|
-
|
|
-
|
6,403
|
0.80
|
51,031
|
6,403
|
0.80
|
51,031
|
6,831
|
0.79
|
53,667
|
Total
|
|
|
-
|
|
-
|
13,475
|
0.76
|
103,074
|
13,475
|
0.76
|
103,074
|
12,102
|
0.94
|
113,156
|
Mineral reserves are reported exclusive of mineral
resources. Tonnage amounts and contained metal amounts set
out in this table have been rounded to the nearest thousand, so may
not aggregate to equal column totals. Mineral reserves are
in-situ, taking into account all mining recoveries, before
mill or heap leach recoveries. Underground mineral reserves
and measured and indicated mineral resources are reported within
mineable shapes and include internal and external dilution.
Inferred mineral resources are reported within mineable shapes and
include internal dilution. Mineable shape optimization
parameters may differ for mineral reserves and mineral
reserves.
The mineral reserves and mineral resources tonnages reported for
silver, copper and zinc are a subset of the mineral reserves and
mineral resources tonnages for gold. 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 historical SEC guidelines.
These guidelines required the use of prices that reflected current
economic conditions at the time of mineral reserve determination,
which the Staff of the SEC had interpreted to mean historic
three-year average prices. Given the current commodity price
environment, Agnico Eagle continues to use more conservative gold
and silver prices.
Assumptions used for the December 31,
2021 mineral reserves estimate at all mines and advanced
projects held by Agnico Eagle on December
31, 2021
|
Metal
prices
|
Exchange
rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican
Peso per
US$1.00
|
US$ per
€1.00
|
Operations and
projects
|
$1,250
|
$18
|
$3.00
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hammond
Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper
Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
Detailed Mineral Reserve and Mineral Resource Data (as at
December 31, 2021) for the Properties
held by Kirkland Lake Gold prior to the Merger
|
|
|
|
|
|
|
|
|
|
MINERAL
RESERVES
|
As of December 31,
2021
|
OPERATION /
PROJECT
|
PROVEN
|
PROBABLE
|
PROVEN &
PROBABLE
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
Detour Main Pit (above
0.5 g/t)
|
Open Pit
|
100%
|
72,829
|
1.19
|
2,783
|
289,584
|
0.90
|
8,366
|
362,413
|
0.96
|
11,149
|
Detour Main Pit (below
0.5 g/t)
|
Open Pit
|
100%
|
4,425
|
0.42
|
60
|
107,754
|
0.41
|
1,422
|
112,179
|
0.41
|
1,482
|
Detour North Pit (above
0.5 g/t)
|
Open Pit
|
100%
|
-
|
|
-
|
5,877
|
0.95
|
180
|
5,877
|
0.95
|
180
|
Detour North Pit (below
0.5 g/t)
|
Open Pit
|
100%
|
-
|
|
-
|
2,192
|
0.41
|
29
|
2,192
|
0.41
|
29
|
West Detour (above 0.5
g/t)
|
Open Pit
|
100%
|
1,972
|
0.96
|
61
|
56,558
|
0.94
|
1,717
|
58,530
|
0.95
|
1,779
|
West Detour (below 0.5
g/t)
|
Open Pit
|
100%
|
1,043
|
0.40
|
14
|
31,079
|
0.40
|
402
|
32,121
|
0.40
|
416
|
Detour Lake
(>0.5 g/t) Total
|
|
|
74,801
|
1.18
|
2,844
|
352,019
|
0.91
|
10,264
|
426,820
|
0.96
|
13,108
|
Detour Lake
(<0.5 g/t) Total
|
|
|
5,468
|
0.42
|
73
|
141,025
|
0.41
|
1,853
|
146,493
|
0.41
|
1,926
|
Detour Lake
Total
|
|
80,269
|
1.13
|
2,917
|
493,044
|
0.76
|
12,117
|
573,313
|
0.82
|
15,034
|
Macassa
|
Underground
|
100%
|
237
|
15.30
|
116
|
3,315
|
16.32
|
1,740
|
3,551
|
16.26
|
1,856
|
Fosterville
|
Underground
|
100%
|
1,221
|
17.31
|
679
|
4,383
|
8.39
|
1,182
|
5,604
|
10.33
|
1,861
|
Robbin's
Hill
|
Underground
|
100%
|
-
|
|
-
|
1,047
|
4.67
|
157
|
1,047
|
4.67
|
157
|
Fosterville
Total
|
|
1,221
|
17.31
|
679
|
5,430
|
7.67
|
1,339
|
6,651
|
9.44
|
2,018
|
Total
|
|
|
81,726
|
1.41
|
3,713
|
501,789
|
0.94
|
15,196
|
583,515
|
1.01
|
18,909
|
|
|
|
MINERAL
RESOURCES
|
|
|
|
As of December 31,
2021
|
OPERATION /
PROJECT
|
MEASURED
|
INDICATED
|
MEASURED &
INDICATED
|
INFERRED
|
GOLD
|
Mining
Method
|
Ownership
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
000
Tonnes
|
g/t
|
000 Oz
Au
|
Detour Main
Pit
|
Open Pit
|
100%
|
25,837
|
1.53
|
1,272
|
251,626
|
0.84
|
6,803
|
277,463
|
0.91
|
8,075
|
24,843
|
0.68
|
545
|
West Detour
|
Open Pit
|
100%
|
-
|
|
-
|
294,574
|
0.70
|
6,643
|
294,574
|
0.70
|
6,643
|
27,527
|
0.74
|
651
|
Detour Zone
58N
|
Underground
|
100%
|
-
|
|
-
|
2,868
|
5.80
|
534
|
2,868
|
5.80
|
534
|
973
|
4.35
|
136
|
Detour Lake
Total
|
|
|
25,837
|
1.53
|
1,272
|
549,067
|
0.79
|
13,981
|
574,904
|
0.83
|
15,253
|
53,343
|
0.78
|
1,332
|
Macassa
|
Underground
|
100%
|
252
|
16.15
|
131
|
1,591
|
12.05
|
617
|
1,843
|
12.61
|
748
|
2,149
|
15.23
|
1,052
|
Macassa Near
Surface
|
Underground
|
100%
|
-
|
|
-
|
57
|
12.40
|
23
|
57
|
12.40
|
23
|
230
|
10.54
|
78
|
Macassa
Total
|
|
|
252
|
16.15
|
131
|
1,649
|
12.07
|
640
|
1,901
|
12.61
|
770
|
2,379
|
14.77
|
1,130
|
Aquarius
|
Open Pit
|
100%
|
-
|
|
-
|
23,112
|
1.49
|
1,106
|
23,112
|
1.49
|
1,106
|
502
|
0.87
|
14
|
Holt Complex
|
Underground
|
100%
|
5,806
|
4.29
|
800
|
5,884
|
4.75
|
898
|
11,690
|
4.52
|
1,699
|
9,097
|
4.48
|
1,310
|
Fosterville
|
Open Pit
|
100%
|
707
|
2.84
|
64
|
783
|
3.54
|
89
|
1,490
|
3.21
|
154
|
213
|
2.23
|
15
|
Fosterville
|
Underground
|
100%
|
391
|
7.31
|
92
|
7,052
|
5.59
|
1,266
|
7,443
|
5.68
|
1,358
|
4,745
|
5.63
|
859
|
Fosterville
Total
|
|
|
1,097
|
4.43
|
156
|
7,835
|
5.38
|
1,356
|
8,933
|
5.26
|
1,512
|
4,958
|
5.48
|
874
|
Robbin's
Hill
|
Open Pit
|
100%
|
-
|
|
-
|
476
|
3.10
|
47
|
476
|
3.10
|
47
|
13
|
5.52
|
2
|
Robbin's
Hill
|
Underground
|
100%
|
-
|
|
-
|
1,875
|
5.09
|
307
|
1,875
|
5.09
|
307
|
4,301
|
5.98
|
828
|
Robbin's Hill
Total
|
|
|
-
|
|
-
|
2,351
|
4.69
|
355
|
2,351
|
4.69
|
355
|
4,314
|
5.98
|
830
|
Fosterville Complex
Total
|
|
1,097
|
4.43
|
156
|
10,187
|
5.22
|
1,710
|
11,284
|
5.14
|
1,866
|
9,271
|
5.72
|
1,704
|
Northern
Territory
|
Open Pit
|
100%
|
1,067
|
5.59
|
192
|
16,402
|
1.29
|
678
|
17,469
|
1.55
|
870
|
14,067
|
1.74
|
787
|
Northern
Territory
|
Underground
|
100%
|
-
|
|
-
|
6,904
|
3.87
|
860
|
6,904
|
3.87
|
860
|
5,094
|
3.70
|
606
|
Northern Territory
Total
|
|
1,067
|
5.59
|
192
|
23,306
|
2.05
|
1,537
|
24,373
|
2.21
|
1,729
|
19,161
|
2.26
|
1,393
|
Total
|
|
|
34,059
|
2.33
|
2,551
|
613,204
|
1.01
|
19,872
|
647,263
|
1.08
|
22,423
|
93,754
|
2.28
|
6,882
|
CIM definitions (2019) were followed in the estimation of
mineral reserves and mineral resources. Mineral reserves are
exclusive of mineral resources. Tonnes and gold ounce
information is rounded to the nearest thousand. Discrepancies
in totals are due to rounding.
Mineral reserves were estimated using a long-term gold price of
US$1,300/oz (C$1,700/oz; A$1,765/oz). Cut-off grades for were
calculated for each stope, including the costs of: mining, milling,
general and administration, royalties and capital expenditures and
other modifying factors (e.g., dilution, mining extraction, mill
recovery), and cut-off grades for Detour Lake were also calculated
using an optimized variable cut-off grade over time. Dilution
estimates vary by mining methods and ranges from 5% to 50% in
Canada and 5% to 40% in
Australia. Extraction estimates vary by mining methods and
range from 50% to 100% in Canada
and 60% to 90% in Australia.
Mineral reserve estimates for Canadian Operations were prepared
under the supervision of Andre
Leite, P.Eng, AUSIMM CP (MIN), MEng. Mineral reserve
estimates for Australian Operations were prepared under the
supervision of R. McLean,
FAusIMM.
Mineral resources for Detour Lake and West Detour project are
based on a high cut-off grade of 0.50 g/t gold and a low cut-off
grade of 0.35 g/t gold. Mineral resources for Zone 58N are
based on a cut-off grade of 2.2 g/t with an assumed mining dilution
of 12%. Mineral resources for Macassa and Holt Complex were
estimated at the following cut-off grades: Macassa '04/Main Break,
8.6 g/t; Macassa Near Surface, 3.4 g/t; Macassa SMC, 5.1 g/t; Holt
mine, 2.8 g/t, with the exceptions Holt Near-Surface Zones with 2.5
g/t (Tousignant, Cascade, North Mattawasaga Pit), Holloway mine
with 2.8 g/t, with the exception of the Deep Thunder (2.7g/t) and
Canamax (2.5 g/t), Taylor mine
with 2.6 g/t, Hislop Property with 2.2 g/t, and Aquarius with
0 g/t gold. Fosterville Open Pit mineral resources were
estimated using cut-off grades ranging between 0.8 g/t gold and 1.0
g/t gold and Fosterville Underground mineral resources were
estimated using cut-off grades ranging between 2.0 g/t and 2.5 g/t
gold. Northern Territory Open Pit mineral resources were
estimated using a cut-off grade of 0.5 g/t gold and Northern
Territory Underground mineral resources were estimated using
cut-off grades ranging between 1.5 g/t and 2.0 g/t gold.
Mineral resources were estimated using: a gold price of
US$1,500/oz and a CAD/USD exchange
rate of 1.31 for Detour Lake and West Detour project; a gold price
of US$1,300/oz and a CAD/USD exchange
rate of 1.25 for Zone 58N deposit; a gold price of US$1,500/oz and a CAD/USD exchange rate of 1.28
for Macassa and Holt Complex; a gold price of US$1,500/oz and an AUD/USD exchange rate of 1.36
for the Australian assets, with the exception of Maud Creek, which was estimated using a gold
price of US$1,200 and AUD/USD
exchange rate of 1.30.
Mineral resource estimates were prepared under the supervision
of the following: Eric Kallio,
P. Geo., Senior Vice-President (Exploration), for the Canadian
assets (excluding Detour Lake Main Pit); Andre Leite, P.Eng, AUSIMM CP (MIN), MEng.,
Technical Services Manager, for the Detour Lake Main Pit;
Troy Fuller, MAIG, for Fosterville
Property; and Mark Edwards, FAusIMM,
MAIG, for the Northern Territory properties.
Assumptions used for the December 31,
2021 mineral reserves estimate at all mines and advanced
projects held by Kirkland Lake Gold on December 31, 2021
|
Gold
(US$/oz)
|
C$
per
US$1.00
|
AUS$ per
US$1.00
|
Mineral
Reserves
|
$1,300
|
$1.31
|
$1.36
|
The above metal price assumptions are below the three-year
historic gold price average (from January 1,
2019 to December 31, 2021) of
approximately $1,654 per ounce.
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 Company's material
mineral projects as at December 31,
2021, including information regarding data verification, key
assumptions, parameters and methods used to estimate mineral
reserves and mineral resources and the risks that could
materially affect the development of the mineral reserves and
mineral resources required by sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d) of NI 43-101 can be found in the Company's AIF
and MD&A filed on SEDAR each of which forms a part of the
Company's Form 40-F filed with the SEC on EDGAR and in the
following technical reports filed on SEDAR in respect of the
Company's material mineral properties: 2005 LaRonde Mineral
Resource & Mineral Reserve Estimate Agnico-Eagle Mines Ltd.
LaRonde Division (March 23, 2005); NI 43-101 Technical Report
Canadian Malartic Mine, Québec, Canada (March 25, 2021); Technical
Report on the December 31, 2009, Mineral Resource and Mineral
Reserve Estimate and the Suuri Extension Project, Kittila Mine,
Finland (March 4, 2010); Technical Report on the Mineral Resources
and Mineral Reserves at Meadowbank Gold Complex including the
Amaruq Satellite Mine Development, Nunavut, Canada as at December
31, 2017 (February 14, 2018); the Updated Technical Report on the
Meliadine Gold Project, Nunavut, Canada (February 11, 2015); the
Detour Lake Operation Ontario, Canada NI 42-101 Technical report as
at July 26, 2021 (October 15, 2021); the Detour Lake Operation
Ontario, Canada NI 43-101 Technical Report as at December 31, 2020
(March 30, 2021); and the Updated NI 43-101 Technical Report
Fosterville Gold Mine in the State of Victoria, Australia as at
December 31, 2018 (April 1, 2019).
APPENDIX – EXPLORATION DRILL COLLAR COORDINATES
Recent selected exploration drill results from LaRonde
Complex, Meliadine and Kittila
Mine / Zone
|
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface (metres)
|
Estimated
true
width (metres)
|
Gold
grade
(g/t)
(capped)*
|
Silver
grade (g/t)
(capped)
|
Copper
grade
(%)
|
Zinc
grade
(%)
|
Odyssey
Internal
|
MEV21-213R
|
658.0
|
678.8
|
558
|
20.8 (CL)
|
3.2
|
-
|
-
|
-
|
|
|
764.0
|
773.9
|
641
|
9.6 (CL)
|
3.9
|
-
|
-
|
-
|
|
|
1,325.0
|
1,333.7
|
1,095
|
8.7 (CL)
|
3.9
|
-
|
-
|
—
|
LaRonde / 20N Zn
S
|
LR-317-004A
|
560.6
|
564.2
|
3,438
|
2.8
|
12.6
|
271
|
1.47
|
1.8
|
Meliadine / Tiriganiaq
Lode 1000*
|
M21-2931A
|
517.5
|
520.5
|
487
|
3.0
|
15.8
|
-
|
-
|
-
|
Meliadine / Tiriganiaq
Lode 1000**
|
M21-3300
|
530.4
|
537.0
|
508
|
6.6
|
15.7
|
-
|
-
|
-
|
Kittila** / Sisar
Deep
|
RIE21-700E
|
1,137.3
|
1,157.0
|
1,948
|
13.6
|
6.3
|
-
|
-
|
-
|
Kittila** / Main
Roura
|
RUG21-537
|
207.0
|
228.7
|
1,097.00
|
15.6
|
5.5
|
-
|
-
|
-
|
*Holes for Odyssey
Internal are capped at 20 g/t gold and "CL" is core length with
true width undetermined. Holes for the LaRonde 20N Zinc South
Zone use a capping factor of 30 g/t gold and 1,000 g/t
silver. The copper and zinc values in this table are
uncapped.
|
**Holes for Tiriganiaq
Lode 1000 and Kittila are uncapped.
|
EXPLORATION DRILL COLLAR COORDINATES
|
Drill Collar
Coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation (metres
above sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
Canadian Malartic –
Odyssey Project
|
MEV21-213R**
|
5334402
|
718567
|
-248
|
-
|
-
|
|
LaRonde
Complex
|
LR-317-004A
|
5347040
|
690149
540181
|
-1,871
|
171
|
-38
|
605
|
Meliadine
|
M21-2931A
|
6988702
|
540352
|
101
|
171
|
-81
|
591
|
M21-3300
|
6988714
|
540356
|
101
|
190
|
-80
|
549
|
Kittila
|
RIE21-700E
|
7538639
|
2558645
|
-778
|
90
|
-75
|
1254
|
RUG21-537
|
7537465
|
2558705
|
-786
|
119
|
-26
|
250
|
Hope Bay
|
HB-S03-293
|
7504636
|
441773
|
69
|
274
|
-76
|
1615
|
TMBBO-19-0001
|
7504678
|
441302
|
78
|
270
|
-70
|
1025
|
08TDD623
|
7557575
|
433669
|
22
|
79
|
-71
|
608
|
97TDD137
|
7557465
|
433770
|
22
|
80
|
-51
|
266
|
TM00125
|
7558988
|
433297
|
35
|
84
|
-75
|
752
|
TMRDC-19-0004
|
7560582
|
434162
|
13
|
294
|
-60
|
50
|
04PMD285
|
7550999
|
433250
|
62
|
178
|
-66
|
752
|
TMMP7-19-0031
|
7547950
|
435089
|
30
|
83
|
-62
|
782
|
TMMSU-19-0023
|
7550150
|
434648
|
27
|
245
|
-63
|
835
|
* Coordinate Systems:
NAD 1983 UTM Zone 17N for Canadian Malartic; NAD 1983 UTM Zone 17Z
for LaRonde Complex;
NAD 1983 UTM Zone 17N for Meliadine; NAD 1983 UTM Zone 13N for Hope
Bay and Finnish Coordinate System KKJ Zone 2
for Kittila
**Mid-point of 20.8
metre core-length intercept in wedge hole.
|
APPENDIX – FINANCIALS
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Operating
margin(i) by mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
$
|
87,070
|
|
$
|
123,528
|
|
$
|
422,185
|
|
$
|
374,040
|
LaRonde Zone 5
mine
|
17,557
|
|
19,965
|
|
64,856
|
|
63,345
|
Goldex mine
|
39,182
|
|
50,177
|
|
145,223
|
|
144,527
|
Meadowbank
Complex
|
25,481
|
|
44,344
|
|
183,280
|
|
81,767
|
Meliadine
mine
|
115,912
|
|
107,617
|
|
399,322
|
|
323,363
|
Hope Bay
mine
|
(4,938)
|
|
—
|
|
32,321
|
|
—
|
Canadian Malartic
mine(ii)
|
96,252
|
|
104,009
|
|
403,018
|
|
283,230
|
Kittila mine
|
54,411
|
|
38,442
|
|
221,914
|
|
202,248
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
27,656
|
|
39,900
|
|
117,958
|
|
119,605
|
Creston Mascota
mine
|
2,628
|
|
4,573
|
|
19,619
|
|
42,674
|
La India
mine
|
22,861
|
|
21,040
|
|
57,494
|
|
79,162
|
Total operating
margin(i)
|
484,072
|
|
553,595
|
|
2,067,190
|
|
1,713,961
|
Amortization of
property, plant and mine development
|
191,618
|
|
174,954
|
|
738,129
|
|
631,101
|
Exploration, corporate
and other
|
103,623
|
|
84,647
|
|
425,652
|
|
315,295
|
Income before income
and mining taxes
|
188,831
|
|
293,994
|
|
903,409
|
|
767,565
|
Income and mining taxes
expense
|
87,725
|
|
88,777
|
|
360,400
|
|
255,958
|
Net income for the
period
|
$
|
101,106
|
|
$
|
205,217
|
|
$
|
543,009
|
|
$
|
511,607
|
Net income per
share — basic
|
$
|
0.41
|
|
$
|
0.85
|
|
$
|
2.23
|
|
$
|
2.12
|
Net income per
share — diluted
|
$
|
0.41
|
|
$
|
0.84
|
|
$
|
2.22
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
261,723
|
|
$
|
403,510
|
|
$
|
1,315,994
|
|
$
|
1,192,054
|
Cash used in investing
activities
|
$
|
(247,208)
|
|
$
|
(247,015)
|
|
$
|
(1,234,689)
|
|
$
|
(808,812)
|
Cash used in financing
activities
|
$
|
(70,543)
|
|
$
|
(74,432)
|
|
$
|
(297,242)
|
|
$
|
(302,822)
|
|
|
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,795
|
|
$
|
1,876
|
|
$
|
1,794
|
|
$
|
1,788
|
Silver
(per ounce)
|
$
|
23.08
|
|
$
|
24.49
|
|
$
|
25.07
|
|
$
|
20.44
|
Zinc
(per tonne)
|
$
|
3,258
|
|
$
|
2,664
|
|
$
|
2,947
|
|
$
|
2,377
|
Copper
(per tonne)
|
$
|
10,120
|
|
$
|
7,298
|
|
$
|
9,724
|
|
$
|
6,298
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
64,081
|
|
89,551
|
|
308,946
|
|
288,239
|
LaRonde Zone 5
mine
|
18,305
|
|
16,178
|
|
70,788
|
|
61,674
|
Goldex mine
|
35,921
|
|
39,507
|
|
134,053
|
|
127,540
|
Meadowbank
Complex
|
69,238
|
|
68,734
|
|
324,808
|
|
209,413
|
Meliadine
mine
|
101,843
|
|
92,782
|
|
391,687
|
|
318,889
|
Hope Bay
mine
|
705
|
|
—
|
|
56,229
|
|
—
|
Canadian Malartic
mine(ii)
|
88,933
|
|
86,371
|
|
357,392
|
|
284,317
|
Kittila mine
|
63,172
|
|
45,056
|
|
239,240
|
|
208,125
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
32,741
|
|
36,671
|
|
126,932
|
|
114,798
|
Creston Mascota
mine
|
2,333
|
|
4,202
|
|
12,801
|
|
38,599
|
La India
mine
|
24,660
|
|
22,393
|
|
63,529
|
|
84,974
|
Total gold
(ounces)
|
501,932
|
|
501,445
|
|
2,086,405
|
|
1,736,568
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
151
|
|
213
|
|
724
|
|
672
|
LaRonde Zone 5
mine
|
5
|
|
5
|
|
14
|
|
12
|
Goldex mine
|
1
|
|
1
|
|
2
|
|
2
|
Meadowbank
Complex
|
22
|
|
23
|
|
94
|
|
63
|
Meliadine
mine
|
8
|
|
8
|
|
30
|
|
27
|
Hope Bay
mine
|
2
|
|
—
|
|
4
|
|
—
|
Canadian Malartic
mine(ii)
|
69
|
|
88
|
|
290
|
|
348
|
Kittila mine
|
3
|
|
2
|
|
11
|
|
11
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
318
|
|
373
|
|
1,285
|
|
1,607
|
Creston Mascota
mine
|
15
|
|
35
|
|
105
|
|
558
|
La India
mine
|
19
|
|
14
|
|
48
|
|
65
|
Total silver (thousands
of ounces)
|
613
|
|
762
|
|
2,607
|
|
3,365
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
1,408
|
|
2,984
|
|
8,837
|
|
6,259
|
Copper
(tonnes)
|
599
|
|
941
|
|
2,955
|
|
3,069
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Payable metal
sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
75,388
|
|
81,979
|
|
333,464
|
|
281,992
|
LaRonde Zone 5
mine
|
17,850
|
|
18,169
|
|
67,588
|
|
61,974
|
Goldex mine
|
35,500
|
|
39,886
|
|
134,385
|
|
127,675
|
Meadowbank
Complex
|
77,611
|
|
70,852
|
|
329,281
|
|
210,935
|
Meliadine
mine
|
103,531
|
|
95,039
|
|
378,048
|
|
322,923
|
Hope Bay
mine
|
8,019
|
|
—
|
|
65,201
|
|
—
|
Canadian Malartic
mine(ii)(iv)
|
81,977
|
|
79,946
|
|
336,416
|
|
267,798
|
Kittila mine
|
55,363
|
|
40,692
|
|
230,570
|
|
211,025
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
29,901
|
|
36,475
|
|
127,106
|
|
118,603
|
Creston Mascota
mine
|
2,385
|
|
5,145
|
|
13,684
|
|
39,610
|
La India
mine
|
24,640
|
|
20,163
|
|
64,888
|
|
82,003
|
Total gold
(ounces)
|
512,165
|
|
488,346
|
|
2,080,631
|
|
1,724,538
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
153
|
|
214
|
|
721
|
|
686
|
LaRonde Zone 5
mine
|
4
|
|
5
|
|
12
|
|
12
|
Goldex mine
|
1
|
|
1
|
|
2
|
|
2
|
Meadowbank
Complex
|
22
|
|
32
|
|
97
|
|
65
|
Meliadine
mine
|
8
|
|
9
|
|
32
|
|
26
|
Hope Bay
mine
|
3
|
|
—
|
|
3
|
|
—
|
Canadian Malartic
mine(ii)(iv)
|
58
|
|
101
|
|
259
|
|
341
|
Kittila mine
|
3
|
|
2
|
|
10
|
|
11
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
298
|
|
391
|
|
1,295
|
|
1,698
|
Creston Mascota
mine
|
14
|
|
46
|
|
128
|
|
574
|
La India
mine
|
16
|
|
9
|
|
50
|
|
66
|
Total silver (thousands
of ounces):
|
580
|
|
810
|
|
2,609
|
|
3,481
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,524
|
|
1,607
|
|
10,803
|
|
5,010
|
Copper
(tonnes)
|
608
|
|
941
|
|
2,973
|
|
3,062
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Total cash costs per
ounce of gold produced — co-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
$
|
874
|
|
$
|
610
|
|
$
|
717
|
|
$
|
643
|
LaRonde Zone 5
mine
|
797
|
|
785
|
|
794
|
|
759
|
Goldex mine
|
679
|
|
592
|
|
684
|
|
634
|
Meadowbank
Complex(vi)
|
1,441
|
|
1,156
|
|
1,209
|
|
1,411
|
Meliadine
mine(vii)(viii)
|
658
|
|
654
|
|
637
|
|
776
|
Hope Bay
mine
|
1,894
|
|
—
|
|
1,064
|
|
—
|
Canadian Malartic
mine(ii)(ix)
|
694
|
|
681
|
|
684
|
|
750
|
Kittila mine
|
812
|
|
910
|
|
836
|
|
806
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,114
|
|
1,019
|
|
1,110
|
|
1,050
|
Creston Mascota
mine
|
941
|
|
1,079
|
|
636
|
|
867
|
La India
mine
|
858
|
|
822
|
|
959
|
|
803
|
Weighted average total
cash costs per ounce of gold produced
|
$
|
867
|
|
$
|
772
|
|
$
|
829
|
|
$
|
838
|
|
|
|
|
|
|
|
|
Total cash costs per
ounce of gold produced — by-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde mine
|
$
|
627
|
|
$
|
372
|
|
$
|
476
|
|
$
|
466
|
LaRonde Zone 5
mine
|
793
|
|
776
|
|
790
|
|
755
|
Goldex mine
|
679
|
|
591
|
|
684
|
|
634
|
Meadowbank
Complex(vi)
|
1,434
|
|
1,142
|
|
1,201
|
|
1,404
|
Meliadine
mine(vii)(viii)
|
656
|
|
652
|
|
634
|
|
774
|
Hope Bay
mine
|
1,829
|
|
—
|
|
1,063
|
|
—
|
Canadian Malartic
mine(ii)(ix)
|
676
|
|
656
|
|
663
|
|
723
|
Kittila mine
|
812
|
|
908
|
|
835
|
|
805
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
888
|
|
767
|
|
858
|
|
749
|
Creston Mascota
mine
|
796
|
|
928
|
|
408
|
|
605
|
La India
mine
|
840
|
|
813
|
|
939
|
|
788
|
Weighted average total
cash costs per ounce of gold produced
|
$
|
814
|
|
$
|
701
|
|
$
|
770
|
|
$
|
775
|
Notes:
|
|
|
|
|
|
|
|
(i) Operating margin is
not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
(ii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(iii) Payable
production (a non-GAAP non-financial performance measure) is
the quantity of mineral produced during a period contained in
products that are or will be sold by the Company, whether such
products are sold during the period or held as inventories at the
end of the period. Payable production for the three months and
year ended December 31, 2021 includes 1,608 and 1,956 ounces
of gold from the Amaruq underground project at the Meadowbank
Complex which were produced during the period, respectively, as
commercial production at the Amaruq underground project has not yet
been achieved. Payable production for the year ended
December 31, 2021 includes 24,057 ounces of gold from the
Tiriganiaq open pit deposit at the Meliadine mine which were
produced prior to the achievement of commercial production at the
Tiriganiaq open pit deposit on August 15, 2021. Payable production
for the three months and year ended December 31, 2020 includes
10,995 ounces of gold from the IVR deposit at the Meadowbank
Complex which were produced prior to the achievement of commercial
production at the IVR deposit on December 31, 2020. Payable
production for the three months and year ended December 31, 2020
includes 4,509 and 6,491 ounces of gold from the Tiriganiaq open
pit deposit at the Meliadine mine, respectively, which were
produced prior to the achievement of commercial production at the
Tiriganiaq open pit deposit on August 15, 2021. Payable production
for the year ended December 31, 2020 includes 18,930 ounces of
gold from the Canadian Malartic mine which were produced prior to
the achievement of commercial production at the Barnat deposit on
September 30, 2020.
|
(iv) The Canadian
Malartic mine's payable metal sold excludes the 5.0% net smelter
return royalty granted to Osisko Gold Royalties Ltd.
|
(v) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's calculation and
use of total cash cost per ounce of gold produced.
|
(vi) The Meadowbank
Complex's cost calculations per ounce of gold produced for the
three months and year ended December 31, 2021 excludes
1,608 and 1,956 ounces of payable gold production, respectively,
which were produced during the period, as commercial production at
the Amaruq underground project has not yet been
achieved.
|
(vii) The Meliadine
mine's cost calculations per ounce of gold produced for the year
ended December 31, 2021 exclude 24,057 ounces of payable gold
production which were produced prior to the achievement of
commercial production at the Tiriganiaq open pit deposit on August
15, 2021.
|
(viii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
months and year ended December 31, 2020 excludes 4,509 and
6,491 ounces of payable gold production, respectively, which were
produced prior to the achievement of commercial production at the
Tiriganiaq open pit deposit on August 15, 2021.
|
(ix) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the year ended December 31, 2020 exclude 18,930 ounces of
payable gold production which were produced prior to the
achievement of commercial production at the Barnat deposit on
September 30, 2020.
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED BALANCE
SHEETS
|
(thousands of United
States dollars, except share amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
As at
|
|
As at
|
|
|
December 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
185,786
|
|
$
|
402,527
|
Short-term
investments
|
|
5,288
|
|
3,936
|
Trade
receivables
|
|
13,545
|
|
11,867
|
Inventories
|
|
878,944
|
|
630,474
|
Income taxes
recoverable
|
|
7,674
|
|
3,656
|
Fair value of
derivative financial instruments
|
|
12,305
|
|
35,516
|
Other current
assets
|
|
198,846
|
|
159,212
|
Total current
assets
|
|
1,302,388
|
|
1,247,188
|
Non-current
assets:
|
|
|
|
|
Goodwill
|
|
407,792
|
|
407,792
|
Property, plant and
mine development
|
|
7,646,281
|
|
7,325,418
|
Investments
|
|
343,509
|
|
375,103
|
Deferred income and
mining tax asset
|
|
133,608
|
|
—
|
Other assets
|
|
353,198
|
|
259,254
|
Total assets
|
|
$
|
10,186,776
|
|
$
|
9,614,755
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
414,673
|
|
$
|
363,801
|
Reclamation
provision
|
|
7,547
|
|
15,270
|
Interest
payable
|
|
12,303
|
|
12,184
|
Income taxes
payable
|
|
47,213
|
|
102,687
|
Lease
obligations
|
|
32,988
|
|
20,852
|
Current portion of
long-term debt
|
|
225,000
|
|
—
|
Fair value of
derivative financial instruments
|
|
22,089
|
|
904
|
Total current
liabilities
|
|
761,813
|
|
515,698
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
|
1,340,223
|
|
1,565,241
|
Lease
obligations
|
|
98,445
|
|
99,423
|
Reclamation
provision
|
|
722,449
|
|
651,783
|
Deferred income and
mining tax liabilities
|
|
1,212,750
|
|
1,036,061
|
Other
liabilities
|
|
70,261
|
|
63,336
|
Total
liabilities
|
|
4,205,941
|
|
3,931,542
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Common
shares:
|
|
|
|
|
Outstanding — 245,435,804 common shares issued, less 433,947
shares held in trust
|
|
5,863,512
|
|
5,751,479
|
Stock
options
|
|
191,112
|
|
175,640
|
Contributed
surplus
|
|
37,254
|
|
37,254
|
Deficit
|
|
(165,319)
|
|
(366,412)
|
Other
reserves
|
|
54,276
|
|
85,252
|
Total equity
|
|
5,980,835
|
|
5,683,213
|
Total liabilities and
equity
|
|
$
|
10,186,776
|
|
$
|
9,614,755
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
949,101
|
|
$
|
928,448
|
|
$
|
3,823,878
|
|
$
|
3,138,113
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
Production(i)
|
465,029
|
|
374,853
|
|
1,756,688
|
|
1,424,152
|
Exploration and
corporate development
|
41,722
|
|
39,024
|
|
152,514
|
|
113,492
|
Amortization of
property, plant and mine development
|
191,618
|
|
174,954
|
|
738,129
|
|
631,101
|
General and
administrative
|
34,430
|
|
33,908
|
|
142,003
|
|
116,288
|
Finance
costs
|
23,833
|
|
20,933
|
|
92,042
|
|
95,134
|
(Gain) loss on
derivative financial instruments
|
(24,263)
|
|
(58,576)
|
|
11,103
|
|
(107,873)
|
Environmental
remediation
|
1,177
|
|
26,838
|
|
576
|
|
27,540
|
Foreign currency
translation loss
|
12,788
|
|
10,991
|
|
5,672
|
|
22,480
|
Other
expenses
|
13,936
|
|
11,529
|
|
21,742
|
|
48,234
|
Income before income
and mining taxes
|
188,831
|
|
293,994
|
|
903,409
|
|
767,565
|
Income and mining taxes
expense
|
87,725
|
|
88,777
|
|
360,400
|
|
255,958
|
Net income for the
period
|
$
|
101,106
|
|
$
|
205,217
|
|
$
|
543,009
|
|
$
|
511,607
|
|
|
|
|
|
|
|
|
Net income per share -
basic
|
$
|
0.41
|
|
$
|
0.85
|
|
$
|
2.23
|
|
$
|
2.12
|
Net income per share -
diluted
|
$
|
0.41
|
|
$
|
0.84
|
|
$
|
2.22
|
|
$
|
2.10
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
244,567
|
|
242,577
|
|
243,708
|
|
241,508
|
Diluted
|
245,323
|
|
244,119
|
|
244,732
|
|
243,072
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i)
Exclusive of amortization, which is shown separately.
|
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
101,106
|
|
$
|
205,217
|
|
$
|
543,009
|
|
$
|
511,607
|
Add (deduct) adjusting
items:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
191,618
|
|
174,954
|
|
738,129
|
|
631,101
|
Deferred income and
mining taxes
|
25,533
|
|
406
|
|
178,588
|
|
75,756
|
Unrealized loss (gain)
on currency and commodity derivatives
|
59
|
|
(21,752)
|
|
44,396
|
|
(30,079)
|
Unrealized (gain) loss
on warrants
|
(14,704)
|
|
(29,321)
|
|
16,736
|
|
(82,003)
|
Stock-based
compensation
|
12,771
|
|
15,762
|
|
57,799
|
|
54,486
|
Foreign currency
translation loss
|
12,788
|
|
10,991
|
|
5,672
|
|
22,480
|
Other
|
7,006
|
|
30,553
|
|
12,868
|
|
27,781
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
(647)
|
|
(2,700)
|
|
(1,678)
|
|
(3,547)
|
Income taxes
|
8,327
|
|
65,445
|
|
(62,424)
|
|
77,922
|
Inventories
|
(9,806)
|
|
10,737
|
|
(185,090)
|
|
(82,949)
|
Other current
assets
|
49,023
|
|
(4,239)
|
|
(31,353)
|
|
198
|
Accounts payable and
accrued liabilities
|
(108,727)
|
|
(39,787)
|
|
(75)
|
|
(5,522)
|
Interest
payable
|
(12,624)
|
|
(12,756)
|
|
(583)
|
|
(5,177)
|
Cash provided by
operating activities
|
261,723
|
|
403,510
|
|
1,315,994
|
|
1,192,054
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to property,
plant and mine development
|
(236,898)
|
|
(224,738)
|
|
(867,684)
|
|
(759,342)
|
Acquisition of TMAC,
net of cash and cash equivalents
|
—
|
|
—
|
|
(185,898)
|
|
—
|
Advance to TMAC to fund
repayment of debt
|
—
|
|
—
|
|
(105,000)
|
|
—
|
Payment to repurchase
the Hope Bay royalty
|
—
|
|
—
|
|
(50,000)
|
|
—
|
Proceeds from sale of
property, plant and mine development
|
1,647
|
|
209
|
|
2,696
|
|
936
|
Net (purchases) sales
of short-term investments
|
(3,176)
|
|
1,699
|
|
(1,352)
|
|
2,069
|
Net proceeds from sale
of equity securities
|
1,188
|
|
—
|
|
5,361
|
|
8,759
|
Purchases of equity
securities and other investments
|
(9,969)
|
|
(8,185)
|
|
(39,889)
|
|
(45,234)
|
Payments for financial
assets at amortized cost
|
—
|
|
(16,000)
|
|
(16,000)
|
|
(16,000)
|
Decrease in restricted
cash
|
—
|
|
—
|
|
23,077
|
|
—
|
Cash used in investing
activities
|
(247,208)
|
|
(247,015)
|
|
(1,234,689)
|
|
(808,812)
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from Credit
Facility
|
145,000
|
|
—
|
|
595,000
|
|
1,075,000
|
Repayment of Credit
Facility
|
(145,000)
|
|
—
|
|
(595,000)
|
|
(1,075,000)
|
Proceeds from Senior
Notes issuance
|
—
|
|
—
|
|
—
|
|
200,000
|
Repayment of Senior
Notes
|
—
|
|
—
|
|
—
|
|
(360,000)
|
Long-term debt
financing costs
|
(2,553)
|
|
—
|
|
(2,553)
|
|
(1,597)
|
Repayment of lease
obligations
|
(7,726)
|
|
(4,272)
|
|
(25,020)
|
|
(15,870)
|
Dividends
paid
|
(69,564)
|
|
(71,848)
|
|
(275,158)
|
|
(190,255)
|
Repurchase of common
shares for stock-based compensation plans
|
—
|
|
(3,692)
|
|
(34,606)
|
|
(39,622)
|
Proceeds on exercise of
stock options
|
4,743
|
|
1,367
|
|
21,707
|
|
90,656
|
Common shares
issued
|
4,557
|
|
4,013
|
|
18,388
|
|
13,866
|
Cash used in financing
activities
|
(70,543)
|
|
(74,432)
|
|
(297,242)
|
|
(302,822)
|
Effect of exchange
rate changes on cash and cash equivalents
|
302
|
|
4,580
|
|
(804)
|
|
210
|
Net (decrease)
increase in cash and cash equivalents during the
period
|
(55,726)
|
|
86,643
|
|
(216,741)
|
|
80,630
|
Cash and cash
equivalents, beginning of period
|
241,512
|
|
315,884
|
|
402,527
|
|
321,897
|
Cash and cash
equivalents, end of period
|
$
|
185,786
|
|
$
|
402,527
|
|
$
|
185,786
|
|
$
|
402,527
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
35,360
|
|
$
|
33,255
|
|
$
|
85,109
|
|
$
|
95,119
|
Income and mining taxes
paid
|
$
|
54,760
|
|
$
|
26,712
|
|
$
|
246,084
|
|
$
|
110,851
|
|
|
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
(thousands of
United States dollars, except where noted)
|
|
Total Production
Costs by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
(thousands of United
States dollars)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
LaRonde mine
|
|
$
|
|
62,402
|
|
$
|
|
42,854
|
|
$
|
|
232,392
|
|
$
|
|
169,824
|
LaRonde Zone 5
mine
|
|
14,571
|
|
14,145
|
|
56,380
|
|
47,899
|
LaRonde
Complex
|
|
76,973
|
|
56,999
|
|
288,772
|
|
217,723
|
Goldex mine
|
|
25,184
|
|
24,648
|
|
96,181
|
|
82,654
|
Meadowbank
Complex
|
|
111,703
|
|
74,871
|
|
406,489
|
|
284,976
|
Meliadine
mine
|
|
69,275
|
|
63,177
|
|
236,763
|
|
245,700
|
Hope Bay
mine
|
|
19,143
|
|
—
|
|
83,118
|
|
—
|
Canadian Malartic
mine(i)
|
|
61,270
|
|
57,669
|
|
242,589
|
|
195,312
|
Kittila mine
|
|
44,998
|
|
37,413
|
|
192,742
|
|
169,884
|
Pinos Altos
mine
|
|
32,698
|
|
37,445
|
|
141,488
|
|
124,678
|
Creston Mascota
mine
|
|
1,966
|
|
6,071
|
|
8,165
|
|
35,088
|
La India
mine
|
|
21,819
|
|
16,560
|
|
60,381
|
|
68,137
|
Production costs per
the consolidated statements of income
|
|
$
|
|
465,029
|
|
$
|
|
374,853
|
|
$
|
|
1,756,688
|
|
$
|
|
1,424,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold
Produced by Mine and Reconciliation of Production Costs to
Minesite Costs per Tonne by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
64,081
|
|
|
89,551
|
|
|
308,946
|
|
|
288,239
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
62,402
|
$
|
974
|
|
$
|
42,854
|
$
|
479
|
|
$
|
232,392
|
$
|
752
|
|
$
|
169,824
|
$
|
589
|
Inventory
adjustments(ii)
|
|
(8,148)
|
(127)
|
|
9,717
|
108
|
|
(19,807)
|
(64)
|
|
7,906
|
27
|
Realized gains and
losses on hedges of production costs
|
|
(2,122)
|
(33)
|
|
(2,081)
|
(23)
|
|
(9,923)
|
(32)
|
|
(2,886)
|
(10)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(2,464)
|
(9)
|
Other
adjustments(iv)
|
|
3,893
|
60
|
|
4,129
|
46
|
|
18,905
|
61
|
|
13,034
|
46
|
Cash operating costs
(co-product basis)
|
|
$
|
56,025
|
$
|
874
|
|
$
|
54,619
|
$
|
610
|
|
$
|
221,567
|
$
|
717
|
|
$
|
185,414
|
$
|
643
|
By-product metal
revenues
|
|
(15,816)
|
(247)
|
|
(21,339)
|
(238)
|
|
(74,499)
|
(241)
|
|
(51,217)
|
(177)
|
Cash operating costs
(by-product basis)
|
|
$
|
40,209
|
$
|
627
|
|
$
|
33,280
|
$
|
372
|
|
$
|
147,068
|
$
|
476
|
|
$
|
134,197
|
$
|
466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per
Tonne
|
|
Three Months
Ended
December 31,
2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
463
|
|
|
478
|
|
|
1,837
|
|
|
1,706
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
62,402
|
$
|
135
|
|
$
|
42,854
|
$
|
90
|
|
$
|
232,392
|
$
|
127
|
|
$
|
169,824
|
$
|
100
|
Production costs
(C$)
|
|
C$
|
78,645
|
C$
|
170
|
|
C$
|
56,901
|
C$
|
119
|
|
C$
|
291,681
|
C$
|
159
|
|
C$
|
226,605
|
C$
|
133
|
Inventory adjustments
(C$)(ii)
|
|
(9,171)
|
(20)
|
|
8,898
|
19
|
|
(21,969)
|
(12)
|
|
6,385
|
3
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(2,368)
|
(1)
|
Other adjustments
(C$)(iv)
|
|
(2,360)
|
(5)
|
|
(4,244)
|
(9)
|
|
(11,921)
|
(7)
|
|
(13,710)
|
(8)
|
Minesite operating
costs (C$)
|
|
C$
|
67,114
|
C$
|
145
|
|
C$
|
61,555
|
C$
|
129
|
|
C$
|
257,791
|
C$
|
140
|
|
C$
|
216,912
|
C$
|
127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
18,305
|
|
|
16,178
|
|
|
70,788
|
|
|
61,674
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
14,571
|
$
|
796
|
|
$
|
14,145
|
$
|
874
|
|
$
|
56,380
|
$
|
796
|
|
$
|
47,899
|
$
|
777
|
Inventory
adjustments(ii)
|
|
442
|
24
|
|
(1,033)
|
(64)
|
|
2,009
|
28
|
|
(117)
|
(2)
|
Realized gains and
losses on hedges of production costs
|
|
(502)
|
(27)
|
|
(491)
|
(30)
|
|
(2,346)
|
(32)
|
|
(681)
|
(11)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(465)
|
(8)
|
Other
adjustments(iv)
|
|
77
|
4
|
|
75
|
5
|
|
171
|
2
|
|
167
|
3
|
Cash operating costs
(co-product basis)
|
|
$
|
14,588
|
$
|
797
|
|
$
|
12,696
|
$
|
785
|
|
$
|
56,214
|
$
|
794
|
|
$
|
46,803
|
$
|
759
|
By-product metal
revenues
|
|
(75)
|
(4)
|
|
(140)
|
(9)
|
|
(288)
|
(4)
|
|
(261)
|
(4)
|
Cash operating costs
(by-product basis)
|
|
$
|
14,513
|
$
|
793
|
|
$
|
12,556
|
$
|
776
|
|
$
|
55,926
|
$
|
790
|
|
$
|
|
46,542
|
$
|
755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
276
|
|
|
261
|
|
|
1,124
|
|
|
968
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
14,571
|
$
|
53
|
|
$
|
14,145
|
$
|
54
|
|
$
|
56,380
|
$
|
50
|
|
$
|
47,899
|
$
|
49
|
Production costs
(C$)
|
|
C$
|
18,334
|
C$
|
66
|
|
C$
|
18,503
|
C$
|
71
|
|
C$
|
70,770
|
C$
|
63
|
|
C$
|
63,944
|
C$
|
66
|
Inventory adjustments
(C$)(ii)
|
|
590
|
2
|
|
(1,464)
|
(6)
|
|
2,447
|
2
|
|
(201)
|
—
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(653)
|
(1)
|
Minesite operating
costs (C$)
|
|
C$
|
18,924
|
C$
|
68
|
|
C$
|
17,039
|
C$
|
65
|
|
C$
|
73,217
|
C$
|
65
|
|
C$
|
63,090
|
C$
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
82,386
|
|
|
105,729
|
|
|
379,734
|
|
|
349,913
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
76,973
|
$
|
934
|
|
$
|
56,999
|
$
|
539
|
|
$
|
288,772
|
$
|
760
|
|
$
|
217,723
|
$
|
622
|
Inventory
adjustments(ii)
|
|
(7,706)
|
(93)
|
|
8,684
|
82
|
|
(17,798)
|
(47)
|
|
7,789
|
22
|
Realized gains and
losses on hedges of production costs
|
|
(2,624)
|
(32)
|
|
(2,572)
|
(24)
|
|
(12,269)
|
(32)
|
|
(3,567)
|
(10)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(2,929)
|
(8)
|
Other
adjustments(iv)
|
|
3,970
|
48
|
|
4,204
|
40
|
|
19,076
|
51
|
|
13,201
|
38
|
Cash operating costs
(co-product basis)
|
|
$
|
70,613
|
$
|
857
|
|
$
|
67,315
|
$
|
637
|
|
$
|
277,781
|
$
|
732
|
|
$
|
232,217
|
$
|
664
|
By-product metal
revenues
|
|
(15,891)
|
(193)
|
|
(21,479)
|
(204)
|
|
(74,787)
|
(197)
|
|
(51,478)
|
(147)
|
Cash operating costs
(by-product basis)
|
|
$
|
54,722
|
$
|
664
|
|
$
|
45,836
|
$
|
433
|
|
$
|
202,994
|
$
|
535
|
|
$
|
180,739
|
$
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31,
2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
739
|
|
|
739
|
|
|
2,961
|
|
|
2,674
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
76,973
|
$
|
104
|
|
$
|
56,999
|
$
|
77
|
|
$
|
288,772
|
$
|
98
|
|
$
|
217,723
|
$
|
81
|
Production costs
(C$)
|
|
C$
|
96,979
|
C$
|
131
|
|
C$
|
75,404
|
C$
|
102
|
|
C$
|
362,451
|
C$
|
122
|
|
C$
|
290,549
|
C$
|
109
|
Inventory adjustments
(C$)(ii)
|
|
(8,581)
|
(12)
|
|
7,434
|
10
|
|
(19,522)
|
(6)
|
|
6,184
|
2
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(3,021)
|
(1)
|
Other adjustments
(C$)(iv)
|
|
(2,360)
|
(3)
|
|
(4,244)
|
(6)
|
|
(11,921)
|
(4)
|
|
(13,710)
|
(5)
|
Minesite operating
costs (C$)
|
|
C$
|
86,038
|
C$
|
116
|
|
C$
|
78,594
|
C$
|
106
|
|
C$
|
331,008
|
C$
|
112
|
|
C$
|
280,002
|
C$
|
105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
35,921
|
|
|
39,507
|
|
|
134,053
|
|
|
127,540
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
25,184
|
$
|
701
|
|
$
|
24,648
|
$
|
624
|
|
$
|
96,181
|
$
|
717
|
|
$
|
82,654
|
$
|
648
|
Inventory
adjustments(ii)
|
|
111
|
3
|
|
(306)
|
(8)
|
|
(264)
|
(2)
|
|
75
|
1
|
Realized gains and
losses on hedges of production costs
|
|
(942)
|
(26)
|
|
(1,002)
|
(25)
|
|
(4,407)
|
(33)
|
|
(1,391)
|
(11)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(610)
|
(5)
|
Other
adjustments(iv)
|
|
53
|
1
|
|
50
|
1
|
|
206
|
2
|
|
170
|
1
|
Cash operating costs
(co-product basis)
|
|
$
|
24,406
|
$
|
679
|
|
$
|
23,390
|
$
|
592
|
|
$
|
91,716
|
$
|
684
|
|
$
|
80,898
|
$
|
634
|
By-product metal
revenues
|
|
(13)
|
—
|
|
(20)
|
(1)
|
|
(42)
|
—
|
|
(37)
|
—
|
Cash operating costs
(by-product basis)
|
|
$
|
24,393
|
$
|
679
|
|
$
|
23,370
|
$
|
591
|
|
$
|
91,674
|
$
|
684
|
|
$
|
80,861
|
$
|
634
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
729
|
|
|
756
|
|
|
2,874
|
|
|
2,655
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
25,184
|
$
|
35
|
|
$
|
24,648
|
$
|
33
|
|
$
|
96,181
|
$
|
33
|
|
$
|
82,654
|
$
|
31
|
Production costs
(C$)
|
|
C$
|
31,737
|
C$
|
44
|
|
C$
|
32,064
|
C$
|
42
|
|
C$
|
120,667
|
C$
|
42
|
|
C$
|
109,727
|
C$
|
41
|
Inventory adjustments
(C$)(ii)
|
|
146
|
—
|
|
(487)
|
—
|
|
(374)
|
—
|
|
44
|
—
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(331)
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
31,883
|
C$
|
44
|
|
C$
|
31,577
|
C$
|
42
|
|
C$
|
120,293
|
C$
|
42
|
|
C$
|
109,440
|
C$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
Per Ounce of Gold
Produced(v)
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year
Ended
December 31,
2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
67,630
|
|
|
57,739
|
|
|
322,852
|
|
|
198,418
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
111,703
|
$
|
1,652
|
|
$
|
74,871
|
$
|
1,297
|
|
$
|
406,489
|
$
|
1,259
|
|
$
|
284,976
|
$
|
1,436
|
Inventory
adjustments(ii)
|
|
(7,872)
|
(116)
|
|
(6,854)
|
(119)
|
|
(548)
|
(2)
|
|
(4,975)
|
(25)
|
Realized gains and
losses on hedges of production costs
|
|
(3,823)
|
(57)
|
|
(1,302)
|
(23)
|
|
(14,256)
|
(44)
|
|
5,505
|
28
|
Operational care &
maintenance due to COVID-19(iii)
|
|
(2,612)
|
(39)
|
|
—
|
—
|
|
(2,612)
|
(8)
|
|
(5,749)
|
(29)
|
Other
adjustments(iv)
|
|
73
|
1
|
|
33
|
1
|
|
1,117
|
4
|
|
191
|
1
|
Cash operating costs
(co-product basis)
|
|
$
|
97,469
|
$
|
1,441
|
|
$
|
66,748
|
$
|
1,156
|
|
$
|
390,190
|
$
|
1,209
|
|
$
|
279,948
|
$
|
1,411
|
By-product metal
revenues
|
|
(507)
|
(7)
|
|
(777)
|
(14)
|
|
(2,414)
|
(8)
|
|
(1,342)
|
(7)
|
Cash operating costs
(by-product basis)
|
|
$
|
96,962
|
$
|
1,434
|
|
$
|
65,971
|
$
|
1,142
|
|
$
|
387,776
|
$
|
1,201
|
|
$
|
278,606
|
$
|
1,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
Per
Tonne(vi)
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
782
|
|
|
684
|
|
|
3,556
|
|
|
2,482
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
111,703
|
$
|
143
|
|
$
|
74,871
|
$
|
109
|
|
$
|
406,489
|
$
|
114
|
|
$
|
284,976
|
$
|
115
|
Production costs
(C$)
|
|
C$
|
141,370
|
C$
|
181
|
|
C$
99,476
|
C$
|
145
|
|
C$
|
512,805
|
C$
|
144
|
|
C$
|
382,592
|
C$
|
154
|
Inventory adjustments
(C$)(ii)
|
|
(9,998)
|
(13)
|
|
(9,413)
|
(13)
|
|
(982)
|
—
|
|
(6,691)
|
(3)
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
(3,327)
|
(4)
|
|
—
|
—
|
|
(3,326)
|
(1)
|
|
(7,716)
|
(3)
|
Minesite operating
costs (C$)
|
|
C$
|
128,045
|
C$
|
164
|
|
C$
|
90,063
|
C$
|
132
|
|
C$
|
508,497
|
C$
|
143
|
|
C$
|
368,185
|
C$
|
148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per Ounce of Gold
Produced(vii)
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
101,843
|
|
|
88,273
|
|
|
367,630
|
|
|
312,398
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
69,275
|
$
|
680
|
|
$
|
63,177
|
$
|
716
|
|
$
|
236,763
|
$
|
644
|
|
$
|
245,700
|
$
|
786
|
Inventory
adjustments(ii)
|
|
652
|
7
|
|
(3,135)
|
(37)
|
|
9,686
|
26
|
|
(3,995)
|
(12)
|
Realized gains and
losses on hedges of production costs
|
|
(3,018)
|
(30)
|
|
(2,324)
|
(26)
|
|
(12,674)
|
(34)
|
|
433
|
1
|
Other
adjustments(iv)
|
|
63
|
1
|
|
62
|
1
|
|
252
|
1
|
|
209
|
1
|
Cash operating costs
(co-product basis)
|
|
$
|
66,972
|
$
|
658
|
|
$
|
57,780
|
$
|
654
|
|
$
|
234,027
|
$
|
637
|
|
$
|
242,347
|
$
|
776
|
By-product metal
revenues
|
|
(198)
|
(2)
|
|
(219)
|
(2)
|
|
(808)
|
(3)
|
|
(527)
|
(2)
|
Cash operating costs
(by-product basis)
|
|
$
|
66,774
|
$
|
656
|
|
$
|
57,561
|
$
|
652
|
|
$
|
233,219
|
$
|
634
|
|
$
|
241,820
|
$
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per
Tonne(viii)
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
462
|
|
|
334
|
|
|
1,501
|
|
|
1,346
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
69,275
|
$
|
150
|
|
$
|
63,177
|
$
|
189
|
|
$
|
236,763
|
$
|
158
|
|
$
|
245,700
|
$
|
183
|
Production costs
(C$)
|
|
C$
|
87,082
|
C$
|
188
|
|
C$
|
82,993
|
C$
|
248
|
|
C$
|
298,014
|
C$
|
199
|
|
C$
|
329,036
|
C$
|
244
|
Inventory adjustments
(C$)(ii)
|
|
810
|
2
|
|
(4,783)
|
(14)
|
|
11,784
|
7
|
|
(5,458)
|
(4)
|
Minesite operating
costs (C$)
|
|
C$
|
87,892
|
C$
|
190
|
|
C$
|
78,210
|
C$
|
234
|
|
C$
|
309,798
|
C$
|
206
|
|
C$
|
323,578
|
C$
|
240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
705
|
|
|
—
|
|
|
56,229
|
|
|
—
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
19,143
|
$
|
27,153
|
|
$
|
—
|
$
|
—
|
|
$
|
83,118
|
$
|
1,478
|
|
$
|
—
|
$
|
—
|
Inventory
adjustments(ii)
|
|
(8,051)
|
(11,420)
|
|
—
|
—
|
|
(13,713)
|
(244)
|
|
—
|
—
|
Operational care &
maintenance due to COVID-19(iii)
|
|
(9,964)
|
(14,133)
|
|
—
|
—
|
|
(9,964)
|
(177)
|
|
—
|
—
|
Other
adjustments(iv)
|
|
207
|
294
|
|
—
|
—
|
|
374
|
7
|
|
—
|
—
|
Cash operating costs
(co-product basis)
|
|
$
|
1,335
|
$
|
1,894
|
|
$
|
—
|
$
|
—
|
|
$
|
59,815
|
$
|
1,064
|
|
$
|
—
|
$
|
—
|
By-product metal
revenues
|
|
(46)
|
(65)
|
|
—
|
—
|
|
(46)
|
(1)
|
|
—
|
—
|
Cash operating costs
(by-product basis)
|
|
$
|
1,289
|
$
|
1,829
|
|
$
|
—
|
$
|
—
|
|
$
|
59,769
|
$
|
1,063
|
|
$
|
—
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
mine
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
7
|
|
|
—
|
|
|
228
|
|
|
—
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
19,143
|
$
|
2,735
|
|
$
|
—
|
$
|
—
|
|
$
|
83,118
|
$
|
365
|
|
$
|
—
|
$
|
—
|
Production costs
(C$)
|
|
C$
|
24,242
|
C$
|
3,463
|
|
C$
|
—
|
C$
|
—
|
|
C$
|
104,291
|
C$
|
457
|
|
C$
|
—
|
C$
|
—
|
Inventory adjustments
(C$)(ii)
|
|
(10,398)
|
(1,485)
|
|
—
|
—
|
|
(17,801)
|
(78)
|
|
—
|
—
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
(12,304)
|
(1,758)
|
|
—
|
—
|
|
(12,304)
|
(53)
|
|
—
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
1,540
|
C$
|
220
|
|
C$
|
—
|
C$
|
—
|
|
C$
|
74,186
|
C$
|
326
|
|
C$
|
—
|
C$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
mine
Per Ounce of Gold
Produced(i)
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
88,933
|
|
|
86,371
|
|
|
357,392
|
|
|
265,387
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
61,270
|
$
|
689
|
|
$
|
57,669
|
$
|
668
|
|
$
|
242,589
|
$
|
679
|
|
$
|
195,312
|
$
|
736
|
Inventory
adjustments(ii)
|
|
450
|
5
|
|
596
|
6
|
|
1,213
|
3
|
|
(319)
|
(2)
|
Realized gains and
losses on hedges of production costs
|
|
—
|
—
|
|
326
|
4
|
|
(78)
|
—
|
|
3,385
|
13
|
Other
adjustments(iv)
|
|
—
|
—
|
|
256
|
3
|
|
557
|
2
|
|
789
|
3
|
Cash operating costs
(co-product basis)
|
|
$
|
61,720
|
$
|
694
|
|
$
|
58,847
|
$
|
681
|
|
$
|
244,281
|
$
|
684
|
|
$
|
199,167
|
$
|
750
|
By-product metal
revenues
|
|
(1,639)
|
(18)
|
|
(2,183)
|
(25)
|
|
(7,233)
|
(21)
|
|
(7,198)
|
(27)
|
Cash operating costs
(by-product basis)
|
|
$
|
60,081
|
$
|
676
|
|
$
|
56,664
|
$
|
656
|
|
$
|
237,048
|
$
|
663
|
|
$
|
191,969
|
$
|
723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
mine
Per
Tonne(i)*
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
2,765
|
|
|
2,869
|
|
|
11,130
|
|
|
9,669
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
61,270
|
$
|
22
|
|
$
|
57,669
|
$
|
20
|
|
$
|
242,589
|
$
22
|
|
$
|
195,312
|
$
|
20
|
Production costs
(C$)
|
|
C$
|
77,571
|
C$
|
28
|
|
C$
|
75,328
|
C$
|
26
|
|
C$
|
307,005
|
C$
|
28
|
|
C$
|
260,019
|
C$
|
27
|
Inventory adjustments
(C$)(ii)
|
|
576
|
—
|
|
1,068
|
1
|
|
2,042
|
—
|
|
(34)
|
—
|
Minesite operating
costs (C$)
|
|
C$
|
78,147
|
C$
|
28
|
|
C$
|
76,396
|
C$
|
27
|
|
C$
|
309,047
|
C$
|
28
|
|
C$
|
259,985
|
C$
|
27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
63,172
|
|
|
45,056
|
|
|
239,240
|
|
|
208,125
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
44,998
|
$
|
712
|
|
$
|
37,413
|
$
|
830
|
|
$
|
192,742
|
$
|
806
|
|
$
|
169,884
|
$
|
816
|
Inventory
adjustments(ii)
|
|
5,671
|
89
|
|
3,829
|
86
|
|
5,908
|
25
|
|
(2,098)
|
(10)
|
Realized gains and
losses on hedges of production costs
|
|
478
|
8
|
|
(404)
|
(9)
|
|
577
|
2
|
|
(662)
|
(3)
|
Other
adjustments(iv)
|
|
177
|
3
|
|
152
|
3
|
|
705
|
3
|
|
639
|
3
|
Cash operating costs
(co-product basis)
|
|
$
|
51,324
|
$
|
812
|
|
$
|
40,990
|
$
|
910
|
|
$
|
199,932
|
$
|
836
|
|
$
|
167,763
|
$
|
806
|
By-product metal
revenues
|
|
(60)
|
—
|
|
(69)
|
(2)
|
|
(249)
|
(1)
|
|
(238)
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
|
51,264
|
$
|
812
|
|
$
|
40,921
|
$
|
908
|
|
$
|
199,683
|
$
|
835
|
|
$
|
167,525
|
$
|
805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
526
|
|
|
353
|
|
|
2,052
|
|
|
1,702
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
44,998
|
$
|
86
|
|
$
|
37,413
|
$
|
106
|
|
$
|
192,742
|
$
|
94
|
|
$
|
169,884
|
$
|
100
|
Production costs
(€)
|
|
€
|
39,079
|
€
|
74
|
|
€
|
31,804
|
€
|
90
|
|
€
|
163,165
|
€
|
80
|
|
€
|
147,993
|
€
|
87
|
Inventory adjustments
(€)(ii)
|
|
5,203
|
10
|
|
3,451
|
10
|
|
5,330
|
2
|
|
(1,667)
|
(1)
|
Minesite operating
costs (€)
|
|
€
|
44,282
|
€
|
84
|
|
€
|
35,255
|
€
|
100
|
|
€
|
168,495
|
€
|
82
|
|
€
|
146,326
|
€
|
86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
32,741
|
|
|
36,671
|
|
|
126,932
|
|
|
114,798
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
32,698
|
$
|
999
|
|
$
|
37,445
|
$
|
1,021
|
|
$
|
141,488
|
$
|
1,115
|
|
$
|
124,678
|
$
|
1,086
|
Inventory
adjustments(ii)
|
|
3,690
|
113
|
|
(228)
|
(6)
|
|
241
|
2
|
|
(3,955)
|
(34)
|
Realized gains and
losses on hedges of production costs
|
|
(365)
|
(11)
|
|
(254)
|
(7)
|
|
(2,515)
|
(20)
|
|
477
|
4
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(2,782)
|
(25)
|
Other
adjustments(iv)
|
|
440
|
13
|
|
423
|
11
|
|
1,627
|
13
|
|
2,171
|
19
|
Cash operating costs
(co-product basis)
|
|
$
|
36,463
|
$
|
1,114
|
|
$
|
37,386
|
$
|
1,019
|
|
$
|
140,841
|
$
|
1,110
|
|
$
|
120,589
|
$
|
1,050
|
By-product metal
revenues
|
|
(7,379)
|
(226)
|
|
(9,266)
|
(252)
|
|
(31,965)
|
(252)
|
|
(34,646)
|
(301)
|
Cash operating costs
(by-product basis)
|
|
$
|
29,084
|
$
|
888
|
|
$
|
28,120
|
$
|
767
|
|
$
|
108,876
|
$
|
858
|
|
$
|
85,943
|
$
|
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
441
|
|
|
544
|
|
|
1,899
|
|
|
1,796
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
32,698
|
$
|
74
|
|
$
|
37,445
|
$
|
69
|
|
$
|
141,488
|
$
|
75
|
|
$
|
124,678
|
$
|
69
|
Inventory
adjustments(ii)
|
|
3,690
|
8
|
|
(228)
|
(1)
|
|
241
|
—
|
|
(3,955)
|
(2)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(2,782)
|
(1)
|
Minesite operating
costs
|
|
$
|
36,388
|
$
|
82
|
|
$
|
37,217
|
$
|
68
|
|
$
|
141,729
|
$
|
75
|
|
$
|
117,941
|
$
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
2,333
|
|
|
4,202
|
|
|
12,801
|
|
|
38,599
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
1,966
|
$
|
843
|
|
$
|
6,071
|
$
|
1,445
|
|
$
|
8,165
|
$
|
638
|
|
$
|
35,088
|
$
|
909
|
Inventory
adjustments(ii)
|
|
196
|
84
|
|
(1,709)
|
(408)
|
|
(349)
|
(27)
|
|
(1,957)
|
(51)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(517)
|
(13)
|
Other
adjustments(iv)
|
|
35
|
14
|
|
175
|
42
|
|
327
|
25
|
|
852
|
22
|
Cash operating costs
(co-product basis)
|
|
$
|
2,197
|
$
|
941
|
|
$
|
4,537
|
$
|
1,079
|
|
$
|
8,143
|
$
636
|
|
|
$
33,466
|
|
$
867
|
|
By-product metal
revenues
|
|
(339)
|
(145)
|
|
(635)
|
(151)
|
|
(2,914)
|
(228)
|
|
(10,116)
|
(262)
|
Cash operating costs
(by-product basis)
|
|
$
|
1,858
|
$
|
796
|
|
$
|
3,902
|
$
|
928
|
|
$
|
5,229
|
$
|
408
|
|
$
|
23,350
|
$
|
605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per
Tonne(xi)
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
526
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
1,966
|
$
|
—
|
|
$
|
6,071
|
$
|
—
|
|
$
|
8,165
|
$
|
—
|
|
$
|
35,088
|
$
|
67
|
Inventory
adjustments(ii)
|
|
196
|
—
|
|
(1,709)
|
—
|
|
(349)
|
—
|
|
(1,957)
|
(4)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(517)
|
(1)
|
Other
adjustments(iv)
|
|
(2,162)
|
—
|
|
(4,362)
|
—
|
|
(7,816)
|
—
|
|
(4,362)
|
(8)
|
Minesite operating
costs
|
|
$
|
—
|
$
|
—
|
|
$
|
—
|
$
|
—
|
|
$
|
—
|
$
|
—
|
|
$
|
28,252
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Gold production
(ounces)
|
|
|
24,660
|
|
|
22,393
|
|
|
63,529
|
|
|
84,974
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
|
21,819
|
$
|
885
|
|
$
|
16,560
|
$
|
740
|
|
$
|
60,381
|
$
|
950
|
|
$
|
68,137
|
$
|
802
|
Inventory
adjustments(ii)
|
|
(820)
|
(33)
|
|
1,438
|
64
|
|
98
|
2
|
|
(295)
|
(3)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(600)
|
(8)
|
Other
adjustments(iv)
|
|
148
|
6
|
|
402
|
18
|
|
458
|
7
|
|
1,036
|
12
|
Cash operating costs
(co-product basis)
|
|
$
|
21,147
|
$
|
858
|
|
$
|
18,400
|
$
|
822
|
|
$
|
60,937
|
$
|
959
|
|
$
|
68,278
|
$
|
803
|
By-product metal
revenues
|
|
(434)
|
(18)
|
|
(196)
|
(9)
|
|
(1,298)
|
(20)
|
|
(1,317)
|
(15)
|
Cash operating costs
(by-product basis)
|
|
$
|
20,713
|
$
|
840
|
|
$
|
18,204
|
$
|
813
|
|
$
|
59,639
|
$
|
939
|
|
$
|
66,961
|
$
|
788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per
Tonne
|
|
Three Months
Ended
December 31, 2021
|
|
Three Months
Ended
December 31, 2020
|
|
Year Ended
December 31, 2021
|
|
Year Ended
December 31, 2020
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
1,398
|
|
|
1,657
|
|
|
6,018
|
|
|
5,526
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
|
21,819
|
$
|
16
|
|
$
|
16,560
|
$
|
10
|
|
$
|
60,381
|
$
|
10
|
|
$
|
68,137
|
$
|
12
|
Inventory
adjustments(ii)
|
|
(820)
|
(1)
|
|
1,438
|
1
|
|
98
|
—
|
|
(295)
|
—
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(600)
|
—
|
Minesite operating
costs
|
|
$
|
20,999
|
$
|
15
|
|
$
|
17,998
|
$
|
11
|
|
$
|
60,479
|
$
|
10
|
|
$
|
67,242
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The
information set out in this table reflects the Company's 50%
interest in the Canadian Malartic mine
|
(ii) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue
|
(iii) This adjustment
reflects the costs associated with the temporary suspension of
mining activities at the Company's mine sites in response to the
COVID-19 pandemic include primarily payroll and other incidental
costs associated with maintaining the sites and properties, and
payroll costs associated with employees who were not working during
the period of reduced or suspended operations.These expenses also
include payroll costs of employees who could not work following the
period of temporary suspension or reduced operations due to the
Company's effort to prevent or curtail community transmission of
COVID-19. These costs were previously classified as "other
adjustments" and have now been disclosed separately to provide
additional detail on the reconciliation, allowing investors to
better understand the impacts of such events on the cash operating
costs per ounce and minesite cost per tonne.
|
(iv) Other adjustments
include the addition of smelting, refining and marketing charges to
production costs
|
(v) The Meadowbank
Complex's cost calculations per ounce of gold produced for the
three months and year ended December 31, 2021 excludes 1,608 and
1,956 ounces of payable gold production, respectively, which were
produced during these periods as commercial production at the
Amaruq underground project has not yet been achieved. The
Meadowbank Complex's cost calculations per ounce of gold produced
for the three months and year ended December 31, 2020 exclude
10,995 ounces of payable gold production which were produced prior
to achievement of commercial production at the IVR deposit on
December 31, 2020
|
(vi) The Meadowbank
Complex's cost calculations per tonne for the three months and year
ended December 31, 2021 excludes 12,386 and 14,299 tonnes of
ore from the Amaruq underground project, respectively, which were
processed during these periods as commercial production at the
Amaruq underground project has not yet been achieved. The
Meadowbank Complex's cost calculations per tonne for the three
months and year ended December 31, 2020 exclude 121,317 tonnes
of ore from the IVR deposit which were produced prior to
achievement of commercial production at the IVR deposit on December
31, 2020
|
(vii) The Meliadine
mine's cost calculations per ounce of gold produced for the year
ended December 31, 2021 exclude 24,057 ounces of payable gold
production which were produced prior to the achievement of
commercial production at the Tiriganiaq open pit deposit on August
15, 2021. The Meliadine mine's cost calculations per ounce of gold
produced for the three months and year ended December 31, 2020 each
excludes 4,509 and 6,491 ounces of payable gold production,
respectively, which were produced prior to the achievement of
commercial production at the Tiriganiaq open pit deposit on August
15, 2021
|
(viii) The Meliadine
mine's cost calculations per tonne for the year ended December 31,
2021 exclude 213,867 tonnes of ore from the Tiriganiaq open pit
deposit which were processed prior to the achievement of commercial
production at the Tiriganiaq open pit deposit on August 15, 2021.
The Meliadine mine's cost calculations per tonne for the three
months and year ended December 31, 2020 excludes 36,130 and 49,504
tonnes of ore from the Tiriganiaq open pit deposit, respectively,
which were processed prior to the achievement of commercial
production at the Tiriganiaq open pit deposit on August 15,
2021.
|
(ix) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the year ended December 31, 2020 exclude 18,930 ounces of payable
gold production which were produced prior to the achievement of
commercial production at the Barnat deposit on September 30,
2020.
|
* The Canadian Malartic
mine's cost calculations per tonne for the year ended December 30,
2020 exclude 731,309 tonnes of ore from the Barnat deposit which
were processed prior to the achievement of commercial production at
the Barnat deposit on September 30, 2020.
|
(xi) The Creston
Mascota mine's cost calculations per tonne for the three months and
year ended December 31, 2021 excludes approximately $2.0 million
and $8.2 million of production costs incurred, respectively, during
these periods following the ceasing of mining activities at the
Bravo pit during the third quarter of 2020. The Creston Mascota
mine's cost calculations per tonne for the three months and year
ended December 31, 2020 exclude approximately $6.1 million of
production costs incurred during these periods following the
ceasing of mining activities at the Bravo pit during the third
quarter of 2020.
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce Produced and All-in
Sustaining Costs per Ounce of Gold Produced
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
(United States
dollars per ounce of gold produced, except where
noted)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Production costs per
the consolidated statements of income (thousands of
United States dollars)
|
$
|
465,029
|
|
$
|
374,853
|
|
$
|
1,756,688
|
|
$
|
1,424,152
|
Gold production
(ounces)(i)(ii)(iii)
|
500,324
|
|
485,941
|
|
2,060,392
|
|
1,700,152
|
Production costs per
ounce of gold production
|
$
|
929
|
|
$
|
771
|
|
$
|
853
|
|
$
|
838
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory
adjustments(iv)
|
(27)
|
|
5
|
|
(8)
|
|
(4)
|
Realized gains and
losses on hedges of production costs
|
(20)
|
|
(16)
|
|
(22)
|
|
2
|
Operational care and
maintenance costs due to COVID-19(v)
|
(25)
|
|
—
|
|
(6)
|
|
(8)
|
Other
adjustments(vi)
|
10
|
|
12
|
|
12
|
|
10
|
Total cash costs per
ounce of gold produced (co-product
basis)(vii)
|
$
|
867
|
|
$
|
772
|
|
$
|
829
|
|
$
|
838
|
By-product metal
revenues
|
(53)
|
|
(71)
|
|
(59)
|
|
(63)
|
Total cash costs per
ounce of gold produced (by-product
basis)(vii)
|
$
|
814
|
|
$
|
701
|
|
$
|
770
|
|
$
|
775
|
Adjustments:
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
236
|
|
206
|
|
207
|
|
199
|
General and
administrative expenses (including stock options)
|
69
|
|
70
|
|
69
|
|
68
|
Non-cash reclamation
provision and sustaining leases
|
17
|
|
8
|
|
13
|
|
9
|
All-in sustaining costs
per ounce of gold produced (by-product basis)
|
$
|
1,136
|
|
$
|
985
|
|
$
|
1,059
|
|
$
|
1,051
|
By-product metal
revenues
|
53
|
|
71
|
|
59
|
|
63
|
All-in sustaining costs
per ounce of gold produced (co-product basis)
|
$
|
1,189
|
|
$
|
1,056
|
|
$
|
1,118
|
|
$
|
1,114
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce Produced and All-in
Sustaining Costs per Ounce of Gold Produced (Excluding the Hope Bay
mine)
|
|
|
|
|
|
|
|
|
(United States
dollars per ounce of gold produced, except where
noted)
|
Three Months
Ended
December 31,
2021
|
|
Year
Ended
December 31,
2021
|
Production costs per
the consolidated statements of income (thousands of
United States dollars)
|
$
|
|
|
|
465,029
|
|
$
|
|
|
|
1,756,688
|
Hope Bay mine
production costs (thousands of United States dollars)
|
19,143
|
|
83,118
|
Production costs
excluding the Hope Bay mine (thousands of United States
dollars)
|
445,886
|
|
1,673,570
|
Gold production
(ounces)(i)(ii)(iii)
|
500,324
|
|
2,060,392
|
Hope Bay mine gold
production (ounces)
|
705
|
|
56,229
|
Gold production
(ounces) excluding the Hope Bay mine
|
499,619
|
|
2,004,163
|
Production costs per
ounce of adjusted gold production
|
$
|
|
|
|
892
|
|
$
|
|
|
|
835
|
Adjustments:
|
|
|
|
Inventory
adjustments(iv)
|
(11)
|
|
(1)
|
Realized gains and
losses on hedges of production costs
|
(21)
|
|
(23)
|
Operational care and
maintenance costs due to COVID-19(v)
|
(5)
|
|
(1)
|
Other(vi)
|
10
|
|
12
|
Total cash costs per
ounce of gold produced (co-product
basis)(vii)
|
$
|
|
|
|
865
|
|
$
|
|
|
|
822
|
By-product metal
revenues
|
(53)
|
|
(61)
|
Total cash costs per
ounce of gold produced (by-product
basis)(vii)
|
$
|
|
|
|
812
|
|
$
|
|
|
|
761
|
Adjustments:
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
229
|
|
194
|
General and
administrative expenses (including stock options)
|
69
|
|
70
|
Non-cash reclamation
provision and sustaining leases
|
16
|
|
13
|
All-in sustaining costs
per ounce of gold produced (by-product basis)
|
$
|
|
|
|
1,126
|
|
$
|
|
|
|
1,038
|
By-product metal
revenues
|
53
|
|
61
|
All-in sustaining costs
per ounce of gold produced (co-product basis)
|
$
|
|
|
|
1,179
|
|
$
|
|
|
|
1,099
|
Notes:
|
|
|
|
|
|
|
|
(i) Gold production for
the three months and year ended December 31, 2021 excludes 1,608
and 1,956 ounces of payable production of gold at the Meadowbank
Complex, respectively, which were produced during this period as
commercial production at the Amaruq underground project has not yet
been achieved. Gold production for the three months and year ended
December 31, 2020 exclude 10,995 ounces of payable production of
gold from the IVR deposit at the Meadowbank Complex which were
produced during this period prior to the achievement of commercial
production at the IVR deposit on December 31, 2020.
|
(ii) Gold
production for the year ended December 31, 2021 exclude 24,057
ounces of payable production of gold at the Meliadine mine which
were produced prior to the achievement of commercial production at
the Tiriganiaq open pit deposit on August 15, 2021. Gold
production for the three months and year ended December 31,
2020 excludes 4,509 and 6,491 ounces of payable production of gold
at the Meliadine mine, respectively, which were produced prior to
the achievement of commercial production at the Tiriganiaq open pit
deposit on August 15, 2021.
|
(iii) Gold production
for the year ended December 31, 2020 excludes 18,930 ounces of
payable production of gold at the Canadian Malartic mine which were
produced prior to the achievement of commercial production at the
Barnat deposit on September 30, 2020.
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue.
|
(v) This adjustment
reflects the costs associated with the temporary suspension of
mining activities at the Company's mine sites in response to the
COVID-19 pandemic which primarily includes payroll and other
incidental costs associated with maintaining the sites and
properties, and payroll costs associated with employees who were
not working during the period of reduced or suspended operations.
These costs were previously classified as "other adjustments" and
have now been disclosed separately to provide additional detail on
the reconciliation, allowing investors to better understand the
impacts of such events on the cash operating costs per ounce and
minesite cost per tonne.
|
(vi) Other adjustments
includes the addition of smelting, refining and marketing charges
to production costs.
|
(vii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See ''Non-GAAP Financial Performance Measures —
Total Cash Costs per Ounce of Gold Produced and Minesite Costs per
Tonne'' for more information on the Company's use of total cash
cost per ounce of gold produced.
|
Reconciliation of
Operating Margin(i) to Net Income
|
|
|
|
|
|
|
Three Months Ended
December 31, 2021
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
Northern
Business:
|
|
|
|
|
|
LaRonde mine
|
$
|
149,472
|
|
$
|
62,402
|
|
$
|
87,070
|
LaRonde Zone 5
mine
|
32,128
|
|
14,571
|
|
17,557
|
Goldex mine
|
64,366
|
|
25,184
|
|
39,182
|
Meadowbank
Complex
|
137,184
|
|
111,703
|
|
25,481
|
Meliadine
mine
|
185,187
|
|
69,275
|
|
115,912
|
Hope Bay
mine
|
14,205
|
|
19,143
|
|
(4,938)
|
Canadian Malartic
mine(ii)
|
157,522
|
|
61,270
|
|
96,252
|
Kittila mine
|
99,409
|
|
44,998
|
|
54,411
|
Total Northern
Business
|
839,473
|
|
408,546
|
|
430,927
|
|
|
|
|
|
|
Southern
Business:
|
|
|
|
|
|
Pinos Altos
mine
|
60,354
|
|
32,698
|
|
27,656
|
Creston Mascota
mine
|
4,594
|
|
1,966
|
|
2,628
|
La India
mine
|
44,680
|
|
21,819
|
|
22,861
|
Total Southern
Business
|
109,628
|
|
56,483
|
|
53,145
|
Segment
totals
|
$
|
949,101
|
|
$
|
465,029
|
|
$
|
484,072
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
|
|
|
|
41,722
|
Amortization of
property, plant, and mine development
|
|
|
|
|
191,618
|
General and
administrative
|
|
|
|
|
34,430
|
Finance
costs
|
|
|
|
|
23,833
|
Gain on derivative
financial instruments
|
|
|
|
|
(24,263)
|
Environmental
remediation
|
|
|
|
|
1,177
|
Foreign currency
translation loss
|
|
|
|
|
12,788
|
Other
expenses
|
|
|
|
|
13,936
|
Income and mining taxes
expense
|
|
|
|
|
87,725
|
Net income per
consolidated statements of income
|
|
|
|
|
$
|
101,106
|
Notes:
|
|
|
|
(i) Operating margin is
not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
|
(ii) The
information set out in this table reflects the Company's 50%
interest in the Canadian Malartic mine.
|
Reconciliation of
Operating Margin(i) to Net Income
|
|
|
|
|
|
|
Three Months Ended
December 31, 2020
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
Northern
Business:
|
|
|
|
|
|
LaRonde mine
|
$
|
166,382
|
|
$
|
42,854
|
|
$
|
123,528
|
LaRonde Zone 5
mine
|
34,110
|
|
14,145
|
|
19,965
|
Goldex mine
|
74,825
|
|
24,648
|
|
50,177
|
Meadowbank
Complex
|
119,215
|
|
74,871
|
|
44,344
|
Meliadine
mine
|
170,794
|
|
63,177
|
|
107,617
|
Canadian Malartic
mine(ii)
|
161,678
|
|
57,669
|
|
104,009
|
Kittila mine
|
75,855
|
|
37,413
|
|
38,442
|
Total Northern
Business
|
802,859
|
|
314,777
|
|
488,082
|
|
|
|
|
|
|
Southern
Business:
|
|
|
|
|
|
Pinos Altos
mine
|
77,345
|
|
37,445
|
|
39,900
|
Creston Mascota
mine
|
10,644
|
|
6,071
|
|
4,573
|
La India
mine
|
37,600
|
|
16,560
|
|
21,040
|
Total Southern
Business
|
125,589
|
|
60,076
|
|
65,513
|
Segment
totals
|
$
|
928,448
|
|
$
|
374,853
|
|
$
|
553,595
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
|
|
|
|
39,024
|
Amortization of
property, plant, and mine development
|
|
|
|
|
174,954
|
General and
administrative
|
|
|
|
|
33,908
|
Finance
costs
|
|
|
|
|
20,933
|
Gain on derivative
financial instruments
|
|
|
|
|
(58,576)
|
Environmental
remediation
|
|
|
|
|
26,838
|
Foreign currency
translation loss
|
|
|
|
|
10,991
|
Other
expenses
|
|
|
|
|
11,529
|
Income and mining taxes
expense
|
|
|
|
|
88,777
|
Net income per
consolidated statements of income
|
|
|
|
|
$
|
205,217
|
|
|
|
|
Notes:
|
|
|
|
(i) Operating margin is
not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
|
(ii) The
information set out in this table reflects the Company's 50%
interest in the Canadian Malartic mine.
|
Reconciliation of
Operating Margin(i) to Net Income
|
|
|
|
|
|
|
Year Ended December
31, 2021
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
Northern
Business:
|
|
|
|
|
|
LaRonde mine
|
$
|
654,577
|
|
$
|
232,392
|
|
$
|
422,185
|
LaRonde Zone 5
mine
|
121,236
|
|
56,380
|
|
64,856
|
Goldex mine
|
241,404
|
|
96,181
|
|
145,223
|
Meadowbank
Complex
|
589,769
|
|
406,489
|
|
183,280
|
Meliadine
mine
|
636,085
|
|
236,763
|
|
399,322
|
Hope Bay
mine
|
115,439
|
|
83,118
|
|
32,321
|
Canadian Malartic
mine(ii)
|
645,607
|
|
242,589
|
|
403,018
|
Kittila mine
|
414,656
|
|
192,742
|
|
221,914
|
Total Northern
Business
|
3,418,773
|
|
1,546,654
|
|
1,872,119
|
|
|
|
|
|
|
Southern
Business:
|
|
|
|
|
|
Pinos Altos
mine
|
259,446
|
|
141,488
|
|
117,958
|
Creston Mascota
mine
|
27,784
|
|
8,165
|
|
19,619
|
La India
mine
|
117,875
|
|
60,381
|
|
57,494
|
Total Southern
Business
|
405,105
|
|
210,034
|
|
195,071
|
Segment
totals
|
$
|
3,823,878
|
|
$
|
1,756,688
|
|
$
|
2,067,190
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
|
|
|
|
152,514
|
Amortization of
property, plant, and mine development
|
|
|
|
|
738,129
|
General and
administrative
|
|
|
|
|
142,003
|
Finance
costs
|
|
|
|
|
92,042
|
Loss on derivative
financial instruments
|
|
|
|
|
11,103
|
Environmental
remediation
|
|
|
|
|
576
|
Foreign currency
translation loss
|
|
|
|
|
5,672
|
Other
expenses
|
|
|
|
|
21,742
|
Income and mining taxes
expense
|
|
|
|
|
360,400
|
Net income per
consolidated statements of income
|
|
|
|
|
$
|
543,009
|
Notes:
|
|
|
(i) Operating margin is
not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
|
|
(ii) The
information set out in this table reflects the Company's 50%
interest in the Canadian Malartic mine.
|
|
|
Reconciliation of
Operating Margin(i) to Net Income
|
|
|
|
|
|
|
Year Ended December
31, 2020
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
Northern
Business:
|
|
|
|
|
|
LaRonde mine
|
$
|
543,864
|
|
$
|
169,824
|
|
$
|
374,040
|
LaRonde Zone 5
mine
|
111,244
|
|
47,899
|
|
63,345
|
Goldex mine
|
227,181
|
|
82,654
|
|
144,527
|
Meadowbank
Complex
|
366,743
|
|
284,976
|
|
81,767
|
Meliadine
mine
|
569,063
|
|
245,700
|
|
323,363
|
Canadian Malartic
mine(ii)
|
478,542
|
|
195,312
|
|
283,230
|
Kittila mine
|
372,132
|
|
169,884
|
|
202,248
|
Total Northern
Business
|
2,668,769
|
|
1,196,249
|
|
1,472,520
|
|
|
|
|
|
|
Southern
Business:
|
|
|
|
|
|
Pinos Altos
mine
|
244,283
|
|
124,678
|
|
119,605
|
Creston Mascota
mine
|
77,762
|
|
35,088
|
|
42,674
|
La India
mine
|
147,299
|
|
68,137
|
|
79,162
|
Total Southern
Business
|
469,344
|
|
227,903
|
|
241,441
|
Segment
totals
|
$
|
3,138,113
|
|
$
|
1,424,152
|
|
$
|
1,713,961
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
|
|
|
|
113,492
|
Amortization of
property, plant, and mine development
|
|
|
|
|
631,101
|
General and
administrative
|
|
|
|
|
116,288
|
Finance
costs
|
|
|
|
|
95,134
|
Gain on derivative
financial instruments
|
|
|
|
|
(107,873)
|
Environmental
remediation
|
|
|
|
|
27,540
|
Foreign currency
translation loss
|
|
|
|
|
22,480
|
Other
expenses
|
|
|
|
|
48,234
|
Income and mining taxes
expense
|
|
|
|
|
255,958
|
Net income per
consolidated statements of income
|
|
|
|
|
$
|
511,607
|
Notes:
|
(i) Operating margin is
not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
(ii) The
information set out in this table reflects the Company's 50%
interest in the Canadian Malartic mine.
|
Reconciliation of
Sustaining Capital Expenditures(i) and Development
Capital Expenditures(i) to the Consolidated Statements
of Cash Flows
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Year
Ended
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Sustaining capital
expenditures(i)
|
$
|
123,925
|
|
$
|
100,210
|
|
$
|
432,543
|
|
$
|
337,516
|
Development capital
expenditures(i)
|
121,473
|
|
139,371
|
|
442,556
|
|
435,960
|
Total Capital
Expenditures
|
$
|
245,398
|
|
$
|
239,581
|
|
$
|
875,099
|
|
$
|
773,476
|
Working capital
adjustments
|
(8,500)
|
|
(14,843)
|
|
(7,415)
|
|
(14,134)
|
Additions to
property, plant and mine development per the consolidated
statements of cash flows
|
$
|
236,898
|
|
$
|
224,738
|
|
$
|
867,684
|
|
$
|
759,342
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i) Sustaining capital
expenditures and development capital expenditures are not
recognized measures under IFRS and this data may not be comparable
to other gold producers. See "Note on Certain Measures of
Performance" for more information on the Company's use of
sustaining capital expenditures and development capital
expenditures.
|
View original
content:https://www.prnewswire.com/news-releases/agnico-eagle-reports-fourth-quarter-and-full-year-2021-results--senior-management-changes-record-annual-gold-production-operating-cash-flow-and-mineral-reserves-new-operational-and-financial-guidance-provided-post-completion-o-301489273.html
SOURCE Agnico Eagle Mines Limited