Stock Symbol: AEM (NYSE
and TSX)
(All amounts expressed in U.S. dollars unless otherwise
noted)
TORONTO, April 28,
2022 /PRNewswire/ - Agnico Eagle Mines Limited
(NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today
reported financial and operating results for the first quarter of
2022.
First quarter of 2022 highlights:
- Solid quarterly production and costs despite COVID-19
challenges – Payable gold production1 in the first
quarter of 2022 was 660,604 ounces at production costs per ounce of
$1,002, total cash costs per
ounce2 of $811 and all-in
sustaining costs ("AISC") per ounce3 of $1,079. These results include a full quarter of
production from the Agnico Eagle mines and 52 days of production
from the legacy Kirkland Lake Gold Ltd. ("Kirkland Lake Gold")
mines (Detour Lake, Macassa and Fosterville) reflecting the period after the
closing of the merger between Agnico Eagle and Kirkland Lake Gold
on February 8, 2022 (the "Merger").
Including a full quarter of production from the legacy Kirkland
Lake Gold mines, total payable gold production in the first quarter
of 2022 was 806,329 ounces with total cash costs per ounce
approximately in line with the mid-point of 2022 total cash cost
guidance announced in February
2022
- Several key cornerstone assets delivered strong operational
performance in the first quarter of 2022 – The LaRonde Complex
and the Detour Lake and Fosterville mines all encountered higher
grades which resulted in better than expected gold production and
costs. At LaRonde, production was 105,037 ounces of gold at total
cash costs per ounce of $560. In the
post-Merger period, Detour Lake produced 100,443 ounces of gold at
total cash costs per ounce of $600,
while Fosterville produced 81,827
ounces of gold at total cash costs per ounce of $309. The strong operational performance in the
first quarter of 2022 puts these mines in a good position to
deliver on 2022 guidance forecasts
- COVID-19 challenges seen in late 2021 and early 2022 appear
to be moderating – Most of the Company's operations were
affected by COVID-19 over the past few months, but production
levels and costs in the first quarter of 2022 were generally in
line with forecasts. All sites are still maintaining active
protocols but risks now appear to be more manageable and the
situation improved through the quarter. As a result, the Company
began the reintegration of its Nunavummiut workforce (which had
been sent home in December 2021) in
mid-March, after consultation with the Nunavut Government and other
local stakeholders. The reintegration was completed in early
April 2022
- Gold production, cost and capital expenditure guidance
reiterated for 2022 – Expected payable gold production in 2022
remains unchanged at 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.
Total capital expenditures (excluding capitalized exploration) for
2022 are still estimated to be approximately $1.4 billion. Guidance for 2022 includes
production, costs and capital for the period commencing
January 1, 2022 for the Detour Lake,
Macassa and Fosterville mines
- Inflationary cost environment continues to evolve – Cost
pressures were relatively minor in the first quarter of 2022,
largely due to cost savings initiatives, long-term agreements with
local suppliers, existing fuel hedges and the predominantly locally
sourced labour force. The inflationary cost environment continues
to be dynamic given the changing political landscape and the
effects of COVID-19. As such, the Company will continue to monitor
and assess any impacts on forecast costs in the coming months as
inflation could have more of an effect during the remainder of the
year
- Merger completed February 8,
2022; Focus Now on Delivering Synergies and Maximizing Value
Drivers – The Merger with Kirkland Lake Gold was completed on
February 8, 2022 and the integration
process is gaining momentum. The senior management team has been
finalized and is focused on optimizing and leveraging best
practices to deliver on corporate and operational synergies and to
maximize value drivers:
-
- Expected Corporate G&A synergies (before tax) are now
expected to be up to $200 million in
the first five years (up from previous guidance of $145 million) and up to $400 million over the next ten years (up from
previous guidance of $320
million)
- The estimate for potential operational synergies remains
unchanged at approximately $130
million per year ($440 million
over five years, $1.1 billion over 10
years). The estimate of strategic opportunities to reduce current
and future expenditures as part of the project pipeline also
remains unchanged at up to $240
million over five years and $590
million over 10 years. While realization of these benefits
will be a multi-year endeavour, encouraging progress was made in
the first quarter of 2022
- Updates on key value drivers are set out below and additional
summaries are provided in the operational section of this news
release
- Update on key value drivers
-
- Odyssey project – Underground development and surface
construction activities remain on schedule and on budget.
Inflationary cost pressures remain manageable at this time. From a
labour perspective, the Company is successfully building a highly
skilled team and the Odyssey project is considered an employer of
choice in the Abitibi. Fifteen drills are active on the property,
with three underground drills completing infill drilling on the
Odyssey South deposit and 12 surface drills focused on infilling
and expanding the East Gouldie mineralization. Shaft sinking is
expected to begin in the fourth quarter of 2022 and the first
underground production is expected to commence in the first half of
2023
- Detour Lake – Mill optimization projects are progressing
as planned and drilling continues to intersect mineralization west
of the resource pit shells, including 30.9 grams per tonne ("g/t")
gold over 16.0 metres at 451 metres depth. Additional
mineralization has also been encountered at depth (3.5 g/t over
45.1 metres at 822 metres depth), further supporting the potential
for future underground mining. A technical evaluation is underway
with the goal of converting a portion of last year's measured and
indicated mineral resources into mineral reserves in the second
quarter of 2022
- Kirkland Lake regional
update – At the Amalgamated Kirkland ("AK") deposit, the
underground ramp from Macassa has been extended by 225 metres and
nine drill holes have been completed in the higher-grade portion of
the deposit (assays pending). AK ore could complement the feed at
the Macassa mill as early as 2024. At Upper Beaver, infill drilling
continues to intersect significant mineralization, including 7.4
g/t gold and 0.4% copper over 14.2 metres at 1,582 metres depth. In
addition, drilling appears to have encountered a new zone of
mineralization 500 metres southeast of the main mineralized zone
(assays pending)
- Hope Bay – Drilling at the Doris deposit has discovered
extensions to the known mineralized zones. Deep exploration
drilling in the BTD Connector area returned highlights of 23.0 g/t
gold over 5.0 metres at 502 metres depth and 9.4 g/t gold over 14.9
metres at 491 metres depth. Additional drills are expected to begin
operating in the coming weeks. Exploration is expected to continue
through 2023 while a larger production scenario is being
evaluated
- Strong investment grade balance sheet; normal course issuer
bid ("NCIB") expected to commence in early May 2022 – On February
9, 2022, Fitch Ratings placed Agnico Eagle's BBB credit
rating on a Positive Outlook. At March 31,
2022, the Company's net debt4 totaled
$503.7 million. Subsequent to the
quarter end, the Company repaid with cash the $125 million 6.77% Series C senior notes at
maturity on April 7, 2022. Under the
proposed NCIB, the Company intends to purchase up to $500 million of its common shares (up to a
maximum of 5% of its issued and outstanding common shares)
- A quarterly dividend of $0.40
per share has been declared
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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".
4 Net debt is a non-GAAP measure that is not a
standardized measure under the financial reporting framework used
to prepare the Company's financial statements. For a
reconciliation to long-term debt see "Reconciliation of Non-GAAP
Financial Performance Measures – Reconciliation of Long-Term Debt
to Net Debt". See also "Note Regarding Certain Measures of
Performance".
|
"I am pleased to report that our newly consolidated operations have
performed very well in the first quarter of 2022 despite challenges
related to COVID-19. Supported by strong metal prices, the
first quarter generated solid operating cash flow which allowed the
Company to continue to deliver on shareholder returns while paying
down debt, and investing in our operations and pipeline projects,"
said Ammar Al-Joundi, Agnico Eagle's
President and Chief Executive Officer. "During the quarter,
we made good progress on the integration of the Kirkland Lake Gold
management team, workforce and mining operations, and corporate
synergies from the merger are now expected to be better than
originally expected. While most of our operations are keeping
costs in line with forecast, we do remain cautious as inflation and
the global political and economic context has increased pressure on
costs and supply chains," added Mr. Al-Joundi.
First Quarter 2022 Financial and Production Results
In the first quarter of 2022, net income was $109.8 million ($0.29 per share). This result includes the
following items (net of tax): a non-cash fair value adjustment on
inventory sold during the quarter related to the Merger included in
production costs of $78.8 million
($0.20 per share), severance costs of
$34.5 million ($0.09 per share), transaction costs relating to
the Merger of $31.3 million
($0.08 per share), derivative gains
on financial instruments of $16.0
million ($0.04 per share) and
various other adjustment gains of $2.8
million ($0.01 per
share). Excluding these items would result in adjusted net
income5 of $235.6 million
or $0.61 per share for the first
quarter of 2022. For the first quarter of 2021, the Company
reported net income of $145.2 million
or net income of $0.60 per share.
Included in the first quarter of 2022 net income, and not
adjusted above, is a non-cash stock option expense of $6.1 million ($0.02
per share), care and maintenance costs of $6.3 million ($0.02
per share) and workforce costs of employees affected by the
COVID-19 pandemic (primarily Nunavut-based) of $5.2
million ($0.01 per share).
________________________________
|
5
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".
|
For financial reporting purposes, the Merger has been determined to
be a business combination with Agnico Eagle identified as the
acquirer. As a result, the purchase consideration was
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") and was recorded in the first quarter of 2022.
The finalization of the Purchase Price Allocation will take place
within twelve months following the acquisition date.
Upon closing of the Merger, under the Purchase Price Allocation,
any gold inventory held by Kirkland Lake Gold on February 8, 2022 was revalued at the forecasted
gold price in the period the inventory was expected to be
sold. The revalued inventory subsequently sold during the
first quarter of 2022 resulted in additional production costs of
approximately $113.7 million
($78.8 million after tax) during the
quarter. Given the extraordinary nature of the fair value
adjustment on inventory related to the Merger, this non-cash
adjustment, which increased the cost of inventory sold during the
quarter, was normalized from net income and net income per share
and adjusted out of the total cash costs per ounce and AISC in the
first quarter of 2022.
The decrease in net income in the first quarter of 2022 compared
to the prior-year period is primarily due to Merger costs
recognized in the quarter, including a fair value adjustment on
inventory sold during the quarter (included in production costs)
and transaction and severance costs. In addition, higher
exploration and development costs, higher amortization due to the
inclusion of the Detour, Macassa and Fosterville mines and higher general and
administrative costs contributed to the decrease in net income in
the first quarter of 2022 compared to the prior-year period.
These higher costs were partially offset by higher operating
margins6 (higher average realized metal prices and
higher sales volumes) and higher gains on derivatives.
In the first quarter of 2022, cash provided by operating
activities was $507.4 million
($366.0 million before changes in
non-cash components of working capital), compared to the first
quarter of 2021 when cash provided by operating activities was
$366.6 million ($425.5 million before changes in non-cash
components of working capital). The non-cash fair value
adjustment on inventory related to the Merger of $113.7 million was included in production costs
and as result included in cash provided by operating activities
before changes in non-cash components of working capital for the
first quarter of 2022. The non-cash fair value adjustment on
inventory was then reversed through changes in non-cash components
of working capital.
________________________________
|
6
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".
|
Excluding the non-cash fair value adjustment on inventory of
$113.7 million related to the Merger,
cash provided by operating activities before changes in non-cash
components of working capital was $479.7
million in the first quarter of 2022 and increased when
compared to the prior year period primarily due to higher sales
volumes and higher realized prices. The cash provided by
operating activities before changes in non-cash components of
working capital of $479.7 million
included non-recurring costs related to the Merger of $34.8 million in transaction costs and
$46.0 in severance costs.
In the first quarter of 2022, the Company's payable gold
production was 660,604 ounces. Including the entire quarter's
production from the legacy Kirkland Lake Gold mines, total gold
production in the first quarter of 2022 was 806,329 ounces.
This compares to quarterly payable gold production of 516,804
ounces in the prior-year period.
Gold production in the first quarter of 2022, when compared to
the prior-year period, was higher primarily due to the inclusion of
the production from the Detour Lake, Macassa and Fosterville mines. This was partially
offset by lower production at the Meadowbank Complex and the
Meliadine mine largely due to the reduction of activities at the
beginning of the quarter due to the impacts of COVID-19.
Production costs per ounce in the first quarter of 2022 were
$1,002, compared to $821 in the prior-year period. Total cash
costs per ounce in the first quarter of 2022 were $811, compared to $734 in the prior-year period. Including
the entire quarter's production from the Kirkland Lake Gold mines,
total cash costs per ounce in the first quarter of 2022 were
approximately in line with the mid-point of the 2022 cost
guidance.
In the first quarter of 2022, 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
and lower production at various operations including the Meadowbank
Complex and the Meliadine, Kittila and Pinos Altos mines. Production costs per
ounce also increased when compared to the prior-year period due to
the fair value adjustment on inventory sold during the quarter as
discussed above. A detailed description of the minesite costs
per tonne at each mine is set out below.
AISC per ounce in the first quarter of 2022 were $1,079, compared to $1,007 in the prior-year period. AISC per
ounce in the first quarter of 2022 increased when compared to the
prior-year period primarily due to higher total cash costs per
ounce, partially offset by lower sustaining capital
expenditures.7
Integration Process Gaining Momentum; Focus on Maximizing Key
Value Drivers
The senior management team has now been finalized and is working
at optimizing and leveraging best practices across the Company's
combined operations, with a focus on delivering previously
announced synergies and maximizing value creation. With the
second quarter of 2022 being the first full quarter of combined
operations, the Company expects to add further value in 2022
through increased production and operating cash flow per share.
Key value drivers are listed below with additional details set
out in the operational section of this news release.
- Detour Lake mine – An updated life of mine plan is
expected to be included in the second quarter of 2022 news release
in July. The Company is also evaluating the potential to expand
operations to 32 million tonnes per year and develop an underground
mining operation
- Kirkland Lake region –
At Macassa, the focus is on completing Shaft #4 infrastructure and
ramping up production. The Company is also evaluating the potential
integration of the AK deposit (potential production start in 2024)
and the Upper Beaver project with the existing regional
infrastructure
- Odyssey project – The Canadian Malartic GP (the"Partnership remains focused on
maintaining the project schedule and budget and finding additional
sources of ore to maximize the production profile especially early
in the mine life
- Kittila mine – The key priority is the completion of the
shaft project and the potential increase in throughput to 2.35
million tonnes per year
- Meliadine mine – The Phase 2 expansion to 6,000 tonnes
per day ("tpd") is expected to be complete by mid-2024. Exploration
efforts are focused on increasing mineral reserves and mineral
resources to extend mine life
- Meadowbank Complex – At Amaruq, the focus remains on
optimizing open pit operations and ramping up underground
production starting in the second half of 2022
- Hope Bay project – Exploration activities are ramping up
with a primary focus on the Doris, Madrid and Boston deposits. The Company is also
evaluating the potential to develop a larger production
scenario
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7
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".
|
2022 Synergy and Optimization Benefits Ahead of Estimates
Work continued in the first quarter of 2022 to realize the
previously disclosed synergy and optimization benefit estimates of
$800 million before tax over the next
five years and $2 billion over the
next ten years. More opportunities were realized in the first
quarter of 2022 than expected, with approximately $45 million of synergies achieved to date,
$35 million of which are expected to
be repeatable on an annual basis. The Company now expects
2022 Merger-related synergies to be at the top end of the
previously disclosed range of $40
million to $60 million.
Corporate General and Administrative ("G&A") Synergies Ahead
of Plan
Corporate G&A synergies were the primary driver of realized
synergies in the first quarter of 2022 as the Company exceeded its
original full-year 2022 estimate of $15-$25 million,
and the Company also surpassed the expected annual run rate of
$35 million per year earlier than
expected. The Company now anticipates being able to achieve
$40 million to $50 million of corporate G&A synergies in
future years.
The key components of the realized corporate G&A synergies
are:
- Streamlining of the business resulting in personnel cost
savings estimated to be approximately $25
million in 2022, expected to grow to $30 million by 2024
- Lower finance and insurance costs of approximately $10 million on an ongoing basis
- Reduction and consolidation of regional office space, resulting
in savings of approximately $9
million (a combination of one-time and ongoing)
- Streamlining of service contracts and the elimination of
external service providers resulting in IT savings of $3 million per year
As a result of the success to date, the Company is revising
upwards its expected corporate G&A synergies to up to
$200 million before tax in the first
five years (up from $145 million) and
to up to $400 million over the next
ten years (up from $320 million).
Operational Synergies
The Company is maintaining its estimate for potential
operational synergies in excess of $130
million per year ($440 million
over five years, ramping up to $1.1
billion over 10 years). While realization of these
benefits will be a multi-year endeavour, encouraging progress was
made in the first quarter of 2022.
Procurement
- The Kirkland Lake Gold and Agnico Eagle procurement teams have
been combined to create one global team for the combined
business
- The process to tender/renegotiate contracts to take advantage
of economies of scale has started, with the largest categories
taking priority
- The team maintains its objective of ramping up to annual
savings of between $35 million and
$50 million by 2024, expecting up to
$10 million of savings in 2022
Operational Improvements
- The Company is evaluating the potential of implementing best
practices from the Canadian Malartic mill to improve overall
availability. An improvement of 1% in mill availability could
result in approximately 7,000 ounces of additional gold
production
- The Company continues to evaluate increasing the slope angle of
the Detour North pit wall which could result in a reduced strip
ratio. This reduction in strip ratio could potentially result in
savings totaling more than $100
million over the life of mine
Other Operational Synergies
- Planning has started to implement the first local centralized
control room in the Abitibi region. This will be a pilot project,
developing strategies and systems to de-risk a larger deployment in
the future
- Discussions with refining partners are underway to optimize the
fee structure having regard to the Company's larger production
volume. These benefits are expected to begin in the second half of
2022
- Enhanced data analysis on energy consumption across the
business was initiated in the first quarter of 2022. This analysis
will be incorporated into energy management systems to develop
strategies to optimize energy usage and cost. The Company believes
these efforts could result in significant annual savings starting
in 2024
- Core scanning technology that is being implemented in the
Quebec and Ontario regions is expected to improve ore
body definition, saving time and cost as compared to traditional
geological interpretation tools
- Taken together, these operational synergies are estimated to
generate between $75 million to
$100 million in annual savings by
2024
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 up
to $30-$40 per ounce in later years. Given the
work and complexity involved in attaining these synergies, and
given the volatile and inflationary price environment, these
synergies were not reflected in the February
2022 production and cost guidance.
Strategic Optimization
The Company continues its review of strategic opportunities to
reduce current and future expenditures as part of its project
pipeline, maintaining the original estimate of up to $240 million over five years and $590 million over 10 years.
Mining the AK deposit from Macassa Infrastructure
- Ore from the AK deposit could complement the feed at the
Macassa mill as early as 2024, with the potential of ramping up to
an average of 40,000 extra ounces of gold per year
- At current spot prices, based on preliminary estimates, this
could generate approximately $40
million of incremental annual pre-tax cash flow
- During the first quarter of 2022, 225 metres of a planned 984
metre exploration decline from Macassa's existing Near Surface Ramp
was completed
- The decline will allow a planned exploration campaign to better
delineate the AK deposit
- Permitting work continues and a production decision could be
reached later in 2022
Upper Beaver project review
- To date, roughly $20 million of
potential savings for the Upper Beaver project have been identified
resulting from equipment synergies with Macassa's #4 shaft
- Using the experienced workforce from Macassa's shaft-sinking
project at Upper Beaver would lower overall shaft sinking costs and
potentially accelerate the schedule
- Work continues on evaluating the potential to use existing
infrastructure, reducing capex and operating costs
Strong Financial Position Allows for Asset Development, Debt
Repayment and Shareholder Returns
Cash and cash equivalents increased to $1,062.0 million at March 31, 2022, from the
December 31, 2021 balance of $185.8
million, primarily due to the cash and cash equivalents of
$838.7 million acquired as a result
of the closing of the Merger during the quarter and higher cash
flow from operations (higher sales volumes and realized gold
prices). As of March 31, 2022,
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.
At March 31, 2022, the Company's
net debt totaled $503.7
million. Subsequent to the quarter end, the Company
further reduced gross debt with the cash repayment of the
$125 million 6.77% Series C senior
notes at maturity on April 7,
2022.
Approximately 39% of the Company's remaining 2022 estimated
Canadian dollar exposure is hedged at an average floor price above
1.25 C$/US$. Approximately 45%
of the Company's remaining 2022 estimated Mexican peso exposure is
hedged at an average floor price above 20.35
MXP/US$. Approximately 24% 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 a degree of 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 positions are not factored into 2022
guidance.
On February 23, 2022, the Company
announced that it intended to launch a normal course issuer bid
("NCIB"). The Company has now submitted draft documentation
to the TSX for approval of an NCIB pursuant to which the Company
would be permitted to purchase up to $500
million of its common shares (up to a maximum of 5% of its
issued and outstanding common shares). Purchases under the
NCIB may continue for up to one year from the expected commencement
date of May 4, 2022. If
approved, purchases under the NCIB will be made through the
facilities of the TSX, the NYSE or other designated exchanges and
alternative trading systems in Canada and the
United States in accordance with applicable regulatory
requirements. All common shares purchased under the NCIB will
be cancelled.
Dividend Record and Payment Dates for the Second Quarter of
2022
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.40 per common share,
payable on June 15, 2022 to
shareholders of record as of June 1,
2022. 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
|
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
In the first quarter of 2022, capital expenditures (including
sustaining capital) were $223.5
million and capitalized exploration expenditures were
$26.6 million, for a total of
$250.1 million. Capital
expenditures were lower than forecast primarily due to the timing
of the expenditures. Capital expenditures during the quarter
were also affected by COVID-19 challenges. Capital spending
is expected to return to more normalized levels over the balance of
the year and the total capital expenditures in 2022 are still
expected to be approximately $1.4
billion (excluding capitalized exploration).
The following table sets out capital expenditures and
capitalized exploration in the first quarter of 2022.
Capital
Expenditures
|
(In thousands of
U.S. dollars)
|
|
|
Capital
Expenditures*
|
|
Capitalized
Exploration
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
31-Mar-22
|
|
31-Mar-22
|
Sustaining Capital
Expenditures
|
|
|
|
|
LaRonde mine
|
|
$18,273
|
|
$393
|
LaRonde Zone
5
|
|
2,390
|
|
347
|
LaRonde
Complex
|
|
20,663
|
|
740
|
Canadian Malartic
mine
|
|
10,734
|
|
—
|
Goldex mine
|
|
5,981
|
|
646
|
Detour Lake
mine
|
|
12,642
|
|
—
|
Macassa mine
|
|
4,433
|
|
224
|
Meliadine
mine
|
|
8,942
|
|
139
|
Meadowbank
Complex
|
|
10,804
|
|
—
|
Fosterville
mine
|
|
8,498
|
|
209
|
Kittila mine
|
|
9,646
|
|
1,704
|
Pinos Altos
mine
|
|
4,835
|
|
72
|
La India
mine
|
|
806
|
|
8
|
Total Sustaining
Capital
|
|
$97,984
|
|
$3,742
|
|
|
|
|
|
Development Capital
Expenditures8
|
|
|
|
|
LaRonde mine
|
|
$12,463
|
|
$ —
|
LaRonde Zone
5
|
|
3,434
|
|
—
|
LaRonde
Complex
|
|
15,897
|
|
—
|
Canadian Malartic
mine
|
|
19,816
|
|
2,936
|
Goldex mine
|
|
4,763
|
|
845
|
Detour Lake
mine
|
|
21,256
|
|
7,604
|
Macassa mine
|
|
14,362
|
|
2,694
|
Meliadine
mine
|
|
10,735
|
|
2,870
|
Meadowbank
Complex
|
|
819
|
|
—
|
Amaruq underground
project
|
|
15,028
|
|
333
|
Fosterville
mine
|
|
4,222
|
|
4,261
|
Kittila mine
|
|
10,536
|
|
—
|
Pinos Altos
mine
|
|
5,918
|
|
—
|
La India
mine
|
|
1,841
|
|
—
|
Other
|
|
346
|
|
1,277
|
Total Development
Capital
|
|
$125,539
|
|
$22,820
|
Total Capital
Expenditures
|
|
$223,523
|
|
$26,562
|
|
|
|
|
|
* Excludes capitalized
exploration
|
|
|
|
|
8 Growth
projects or Development capital expenditures 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" and "Reconciliation of Non-GAAP Performance Measures –
Reconciliation of Sustaining Capital Expenditures to Consolidated
Statements of Cash Flow"
|
2022 Guidance Unchanged
Expected gold production in 2022 remains unchanged at
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. Total capital expenditures for 2022
are still estimated to be approximately $1.4
billion. Guidance for 2022 includes production, costs
and capital for the period commencing January 1, 2022 at the Detour Lake, Macassa and
Fosterville mines.
The estimated 2022 depreciation and amortization expense
provided on February 23, 2022
considered a preliminary fair value allocation to the Kirkland Lake
Gold assets. The 2022 depreciation and amortization expense
guidance remains unchanged at this time (between $1.37 to $1.47
billion for the full year 2022). The finalization of
the Purchase Price Allocation will take place within the twelve
months following the acquisition date and, as such, the
depreciation estimate is subject to change.
Cost Inflation
Supply costs from the fourth quarter of 2021 are in line with
costs in the first quarter of 2022 and early in the second quarter
of 2022. Cost pressures were relatively minor in the first
quarter of 2022, largely due to cost savings initiatives, long-term
agreements with local suppliers, existing fuel hedges and the
predominantly locally sourced labour force. Overall, the
Company has not experienced any significant supply issues and is
closely monitoring the supply chain for signs of stress or
potential disruptions.
The inflationary cost environment continues to be dynamic given
the changing political landscape and the impacts of COVID-19.
The Company will continue to monitor and assess any impacts on
forecasted costs in the coming months as inflation could have more
of an effect during the remainder of the year.
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 Nunavut operations and
exploration projects. As the COVID-19 situation improved and
after consultation with the Nunavut Government and other local
stakeholders, the Company began the reintegration of its
Nunavummiut workforce in mid-March. The reintegration was
completed in early April 2022.
During the first quarter of 2022, COVID-19 continued to be a
challenge at the Company's operations, but production levels and
costs in the first quarter of 2022 were generally in line with
forecasts. Risks now appear to be more manageable and the
situation improved through the quarter. 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. This remains an evolving situation and the Company
is monitoring activities at its operations and reassesses its
response on an ongoing basis.
Agnico Eagle continues to be recognized for its ESG practices in
the first quarter of 2022. During the quarter, the Detour
Lake mine was awarded the Leading Practice Award by the
International Network for Acid Prevention in recognition of its
research and progressive rehabilitation program. This award
recognizes leading acid mine drainage mitigation and prevention
practice at a specific operating site.
The Company expects to publish its 2021 sustainability report in
the second quarter of 2022, which will include information with
respect to the legacy Kirkland Lake Gold operations.
Following the Merger, Agnico Eagle continues to have one of the
lowest greenhouse gas intensities among gold miners globally.
The Company has committed to a net zero target for 2050 and
pathways to achieve net zero, including specific reduction targets
and other key climate-related targets, continue to be
evaluated. An update on the Company's climate strategy is
expected to be provided later in 2022.
First Quarter 2022 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Friday, April 29, 2022 at
8:30 AM (E.D.T.) to discuss
the Company's first quarter of 2022 financial and operating
results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
1-416-764-8630 or toll-free 1-888-390-0608. 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 747635#. The conference call replay will expire on
May 29, 2022.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
Annual Meeting
The Company will host its Annual and Special Meeting of
Shareholders (the "AGM") on Friday, April
29, 2022 at 11:00 am
(E.D.T). During the AGM, management will provide an overview
of the Company's activities.
Hybrid Format
The AGM will be held in person at the Arcadian Court, 401 Bay
Street, Simpson Tower, 8th Floor, Toronto, Ontario, M5H 2Y4 and online at:
https://meetnow.global/MX6S7HV.
The Company is conducting a hybrid meeting that will allow
registered shareholders and duly appointed proxyholders to
participate both online and in person. The Company is
providing the virtual format in order to provide shareholders with
an equal opportunity to attend and participate at the AGM,
regardless of the particular constraints, circumstances or risks
that they may be facing as a result of COVID-19.
For details explaining how to attend, communicate and vote
virtually at the AGM please see the Company's Management
Information Circular dated March 21,
2022, filed under the Company's profile on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov. Shareholders who
have questions about voting their shares or attending the AGM may
contact Investor Relations by telephone at 1-416-947-1212, by
toll-free telephone at 1-888-822-6714 or by email
at info@agnicoeagle.com.
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and
LaRonde Zone 5 ("LZ5") mines), 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 – Higher Grades at the East Mine and Lower
Operating Costs Drive Strong Operational Performance; Underground
Exploration Drifts Advancing as Planned and Drilling is Now
Underway
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988. The LZ5 property lies adjacent to and west of the
LaRonde mine and previous operators exploited the zone by open pit
mining. The LZ5 mine achieved commercial production in
June 2018.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore milled
(thousands of tonnes)
|
|
735
|
|
764
|
Tonnes of ore milled
per day
|
|
8,167
|
|
8,489
|
Gold grade
(g/t)
|
|
4.72
|
|
4.02
|
Gold production
(ounces)
|
|
105,037
|
|
93,078
|
Production costs per
tonne (C$)
|
|
$
108
|
|
$
108
|
Minesite costs per
tonne9 (C$)
|
|
$
121
|
|
$
108
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
596
|
|
$
688
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
560
|
|
$
541
|
Gold production in the first quarter of 2022 increased when
compared to the prior-year period primarily due to higher gold
grades, partially offset by lower mill throughput. In the
first quarter of 2022, the LaRonde Complex benefited from the
mining of high grade stopes in the East mine, originally scheduled
in the fourth quarter of 2021, as well as a higher than anticipated
grade in these stopes. The lower mill throughput resulted
from lower mine productivity due to lower than planned workforce
availability related to COVID-19.
Production costs per tonne in the first quarter of 2022 were the
same when compared to the prior-year period primarily as a result
of the timing of unsold concentrate inventory, being offset by
lower throughput levels and higher unit costs for fuel, materials
and reagents. Production costs per ounce in the first quarter
of 2022 decreased when compared to the prior-year period primarily
as a result of higher gold production.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to lower
throughput levels and higher unit costs for fuel, materials and
reagents. Total cash costs per ounce in the first quarter of
2022 increased when compared to the prior-year period primarily due
to higher minesite cost per tonne, partially offset by higher gold
production.
Operational Highlights
- Production in the first quarter of 2022 was better than
expected, despite challenges with COVID-19, due to higher grades as
described above. The strong operational performance in the first
quarter of 2022 puts the LaRonde Complex in a good position to
deliver on 2022 guidance
- Development activities during the quarter were also affected
due to lower than planned workforce availability due to COVID-19.
As a result of slower than expected development and a change in
mining sequence, production in the second half of 2022 is expected
to be slightly weaker than the first half of 2022
- In the first quarter of 2022, the main drivers of lower total
cash costs per ounce than forecast were higher gold production and
lower operating costs resulting from increased amounts of
development work being classified as capital expenditures, offset
by higher fuel and material costs. Total cash costs per ounce were
also positively affected by currency and inventory adjustments
- In the first quarter of 2022, approximately 23% of the gold
produced was sourced from the West mine area in line with
expectations (20-25%), while the mining rate at the LZ5 mine
averaged approximately 3,134 tpd, slightly below the target
production rate of 3,200 tpd
- During the second quarter of 2022, a planned mill shutdown
(approximately 4 days) is expected to take place in late April and
early May
- The LaRonde Complex has been successful at incrementally
implementing automation for its production activities. During the
first quarter of 2022, at the LaRonde mine, 31% of the production
mucking was done in automated mode with operators based on surface,
which was in line with the 2022 target of 30%. At the LZ5 mine, 21%
of the production mucking was done in automated mode with operators
based on surface during the first quarter of 2022, compared to the
2022 objective of 23%
________________________________
|
9
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".
|
Project Highlights
- At Zone LR11-3 (which is at the past producing Bousquet 2
mine), development of the haulage drift on level 146 and 149 began
and the ramp between level 146 and 143 was completed. Gold
production from LR11-3 development ore is expected to begin in late
2022 and production is expected to start in the first half of
2023
- The construction of the drystack tailings facilities is
progressing on schedule. The filter press installation is almost
complete and electrical and instrumentation work began in late
March. The drystack tailings facility is expected to be operational
by the end of 2022
Canadian Malartic – Operational Performance In Line With
Expectations; Underground Development and Surface Construction
Activities at Odyssey Remain on Schedule and on Budget
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation (now
Canadian Malartic Corporation) and
created the Canadian Malartic GP
(the "Partnership"). The Partnership owns the Canadian
Malartic mine in northwestern Quebec and operates it through a joint
management committee. Each of Agnico Eagle and Yamana has a
direct and indirect 50% ownership interest in the
Partnership. All volume 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
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
|
4,824
|
|
5,262
|
Tonnes of ore milled
per day (100%)
|
|
53,600
|
|
58,467
|
Gold grade
(g/t)
|
|
1.14
|
|
1.18
|
Gold production
(ounces)
|
|
80,509
|
|
89,550
|
Production costs per
tonne (C$)
|
|
$
30
|
|
$
27
|
Minesite costs per
tonne (C$)
|
|
$
34
|
|
$
28
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
707
|
|
$
619
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
792
|
|
$
617
|
Gold production in the first quarter of 2022 decreased when
compared to the prior-year period primarily due to lower mill
throughput and slightly lower gold grades, partially offset by
higher metallurgical recovery. As planned, starting in
February 2022, the mill throughput
levels were reduced to 51,500 tpd (on a 100% basis) in an effort to
optimize the production profile during the transition to the
underground Odyssey project. 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.
Production costs per tonne in the first quarter of 2022
increased when compared to the prior-year period primarily due to
higher mine and mill production costs resulting from lower
throughput levels and higher fuel costs, a lower deferred stripping
adjustment and the timing of inventory. Production costs per
ounce in the first quarter of 2022 increased when compared to the
prior-year period primarily due to higher production costs per
tonne, the strengthening of the Canadian dollar against the U.S.
dollar and lower gold grades.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to higher mine
and mill production costs resulting from lower throughput levels
and higher fuel costs, and a lower deferred stripping
adjustment. Total cash costs per ounce in the first quarter
of 2022 increased when compared to the prior-year period primarily
due to higher production costs per tonne, the strengthening of the
Canadian dollar against the U.S. dollar and lower gold grades.
Operational Highlights
- During the first quarter of 2022, production was generally in
line with forecast despite the challenging conditions in January
and February (lower than planned workforce availability due to
COVID-19 and extreme cold temperatures) and slightly lower grade
than expected
- In February 2022, the Partnership
adjusted the milling rate to 51,500 tpd to optimize the processing
plan to improve the production profile during the transition to the
Odyssey underground project. This optimization is expected to
enhance the financial performance and cash flow in the
near-term
Project Highlights
Odyssey Project:
- The Odyssey project remains on schedule and budget.
Inflationary cost pressures remain manageable at this time. From a
labour perspective, the Company is successfully building a highly
skilled team and the Odyssey project is considered an employer of
choice in the Abitibi
- Underground development in the first quarter of 2022 was
generally in line with forecast, with 375 metres of ramp completed
and 1,079 metres of lateral development achieved. Development rates
are expected to continue increasing over the remainder of the
year
- The headframe and hoistroom construction continued in the first
quarter of 2022 and the structural steel installation began in
early January. Shaft sinking is expected to begin in the fourth
quarter of 2022, and the first underground production is expected
to commence in the first half of 2023
- Surface construction activities continue to progress with the
maintenance garage and warehouse expected to be completed in the
second quarter of 2022. Construction of the paste plant is ongoing
and is expected to be ready for production in 2023
- During the first quarter of 2022, the Partnership repurchased
the 2% NSR royalty on the Rand Malartic property for $7 million
- Fifteen drills are active on the property, with three
underground drills carrying out infill drilling on the Odyssey
South deposit and 12 surface drills focused on infilling and
expanding the East Gouldie mineralization
Other Opportunities
- In 2021, the Camflo property, which lies to the north, was
added to the Partnership's land holdings. The Camflo property
covers the past producing Camflo mine which had historical
production of approximately 1.6 million ounces of gold. An initial
evaluation of the Camflo property has identified porphyry hosted
gold mineralization that could potentially be mined via an open
pit. Additional studies are underway to fully evaluate this
mineralization and additional potential in adjacent rock types
Goldex – Mill Throughput Positively Affected by Strong
Performance from the Rail-Veyor and the South Zone
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore milled
(thousands of tonnes)
|
|
743
|
|
727
|
Tonnes of ore milled
per day
|
|
8,256
|
|
8,078
|
Gold grade
(g/t)
|
|
1.63
|
|
1.64
|
Gold production
(ounces)
|
|
34,445
|
|
34,650
|
Production costs per
tonne (C$)
|
|
$
45
|
|
$
39
|
Minesite costs per
tonne (C$)
|
|
$
46
|
|
$
39
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
761
|
|
$
650
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
777
|
|
$
623
|
Gold production in the first quarter of 2022 decreased slightly
when compared to the prior-year period primarily due to lower
metallurgical recoveries and slightly lower gold grades being
offset by higher throughput levels. In the first quarter of
2022, the Goldex mine continued to deliver a solid performance in
line with the production plan and past performance despite lower
than planned workforce availability related to COVID-19.
Production costs per tonne in the first quarter of 2022
increased when compared to the prior-year period primarily due to
higher mine development and production costs resulting from higher
labour and ground support costs, higher mill costs resulting from
higher unit costs for reagents and grinding media and the timing of
unsold inventory. Production costs per ounce in the first
quarter of 2022 increased when compared to the prior-year period
primarily due to higher production costs per tonne.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to higher mine
development and production costs resulting from higher labour and
ground support costs and higher mill costs resulting from higher
unit costs for reagents and grinding media. Total cash costs
per ounce in the first quarter of 2022 increased when compared to
the prior-year period due to the factors causing higher minesite
costs per tonne.
Operational Highlights
- During the first quarter of 2022, gold production was in line
with forecast despite challenges with lower than planned workforce
availability related to COVID-19. This was driven by higher
throughput levels from higher tonnage from the South Zone and
M&E zones and strong performance by the Rail-Veyor system in
March
- In March 2022, the Rail-Veyor
system set a record at an average of 7,592 tpd (above its design
capacity of 7,000 tpd) and had the best single day performance ever
at 10,752 tonnes
- Ore production from the South Zone was 960 tpd in the first
quarter of 2022 and reached a record 1,689 tpd in March
- Mining at South Zone sector #2B started ahead of schedule and
good exploration results were reported from between levels 094 and
098 (7.2 g/t gold over 3.0 metres at 933 metres depth and 10.0 g/t
gold over 3.0 metres at 956 metres depth in hole GD90-182 and 21.2
g/t gold over 3.0 metres at 955 metres depth in hole GD90-180)
- South Zone Sector #3 also yielded strong conversion and
delineation drill results, including 10.2 g/t gold over 5.3 metres
at 1,288 metres depth in hole GD-128-050 and 19.4 g/t gold over 5.7
metres at 1,264 metres depth in hole GD128-048
ABITIBI REGION, ONTARIO
Agnico Eagle acquired the Detour Lake and Macassa mines on
February 8, 2022 as a result of the
Merger with Kirkland Lake Gold. With the inclusion of these
two assets in its portfolio, the Company is now Ontario's largest gold producer.
Furthermore, the proximity of these mines to the Company's
operations located in the Abitibi region of Quebec provides operating synergies and allows
for the sharing of technical expertise.
Detour Lake – Strong Gold Production and Low Cash Costs
Driven by Higher Gold Grades; Mill Optimization Projects
Progressing as Planned
The Detour Lake operation is located in northeastern
Ontario, approximately 300
kilometres northeast of Timmins
and 185 kilometres by road northeast of Cochrane, within the northernmost Abitibi
Greenstone Belt.
In 1987, Placer Dome Inc. began underground gold production at
the Detour Lake property and during the initial 12 years of mining
(from 1987 to 1999) production was approximately 1.7 million ounces
of gold from approximately 14.3 million tonnes grading 3.82 g/t
gold. In 2013, Detour Gold Corporation restarted gold
production via open pit mining. The Detour Lake mine is the
largest gold producing mine in Canada with the largest gold reserves and
substantial growth potential. It has an estimated mine life
of approximately 21 years.
Detour Lake –
Operating Statistics*
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2022
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
3,270
|
|
Tonnes of ore milled
per day
|
|
62,885
|
|
Gold grade
(g/t)
|
|
1.03
|
|
Gold production
(ounces)
|
|
100,443
|
|
Production costs per
tonne (C$)
|
|
$
46
|
|
Minesite costs per
tonne (C$)
|
|
$
24
|
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
1,194
|
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
600
|
|
*In the first quarter
of 2022, the operating statistics are reported for the period from
February 8, 2022 to March 31, 2022.
|
For the period from February 8, 2022
to March 31, 2022, gold production at
the Detour Lake mine was 100,443 ounces, with production costs per
tonne of C$46, production costs per
ounce of $1,194, minesite costs per
tonne of C$24 and total cash costs
per ounce of $600.
The difference between production costs per tonne and minesite
costs per tonne and the difference between production costs per
ounce and total cash costs per ounce are primarily due to the
inventory re-valuation at the forecasted gold price in the period
the inventory was expected to be sold done as part of the Purchase
Price Allocation following the completion of the Merger.
Operational Highlights
- For the complete first quarter of 2022, gold production at
Detour Lake was 181,834 ounces
- On April 13, 2022, the Detour
Lake mine poured its five millionth ounce of gold since commercial
production began at the site in 2013 while owned by Detour Gold
Corporation
- In the first quarter of 2022, the Detour Lake mine was awarded
the International Network for Acid Prevention Leading Practice
Award in recognition of their research and progressive
rehabilitation program
- In the first quarter of 2022, the Detour Lake mine received the
Overall Benefit Permit for woodland caribou and the Forestry
Resource License for the Sunday Creek Project. With the permit, the
Company will be able to proceed with the construction of access
roads to support the construction of two waterlines and
infrastructure to carry water at a maximum of 65,000 cubic metres
per day seasonally from the Mine Water Pond to Sunday Creek. The discharge of surplus run off
and non-process affected water will reduce the need for additional
water storage capacity on site. The Environmental Compliance
Approval, which will allow the construction of the waterlines and
infrastructure to commence, is under review by the Ministry of
Environment, Conservation and Parks. This project is expected to be
completed in the first half of 2023
- In the fourth quarter of 2021 and the first quarter of 2022,
the Detour Lake mine benefited from a combination of a higher grade
mining sequence from Phase 2 and a positive reconciliation observed
when mining around historical underground workings
- The open pit mine delivered solid performance in the first
quarter of 2022, with the tonnage moved in line with expectations.
Adjustments to the mining sequence resulted in a higher strip ratio
than forecast for the quarter
- Tonnage milled was slightly under forecast primarily due to
lower mill availability associated with the timing of the planned
mill liner replacement
- In the first quarter of 2022, despite cost pressures related to
higher fuel and higher electricity prices, the Detour Lake mine
achieved lower total cash costs per ounce than guided primarily due
to higher gold grade. With the optimization efforts ongoing and the
strong first quarter of 2022, the Company believes that the Detour
Lake mine is in a good position to deliver on 2022 production and
cost guidance
Project Highlights
- In 2021, a record 24.1 million tonnes were milled at the Detour
Lake mine. The Company has undertaken several projects to
progressively increase the mill throughput to 28 million tonnes by
2025. Key project updates are provided below:
- ◦ Pre-screening before the secondary crusher is expected to
help debottleneck the grinding circuit and contribute approximately
2 million tonnes per year to the mill throughput. The project is
approximately 43% complete and is expected to be fully competed in
the fourth quarter of 2022
-
- The construction of four additional carbon-in-pulp (CIP) leach
tanks are expected to increase the leach retention time and
capacity by approximately 20% and improve gold recovery.
Engineering is expected to be completed in 2022; foundation work is
planned to be completed in 2023 with the tank installation planned
for 2024
- An upgrade to the gravity circuit is planned which is expected
to increase free gold recovery from 25% to approximately 40%.
Construction is expected to begin in the second quarter of 2022
with commissioning expected to be completed in the fourth quarter
of 2022
- The mine is building a new automated laboratory to analyze
samples from delineation and production drilling. The laboratory
will have the capacity to process up to 900 gold and 1,200
multi-element samples per day. At the end of the first quarter of
2022, the project was approximately 67% complete. The assay
laboratory is expected to be commissioned in the fourth quarter of
2022
- An upgrade of the 230kV main substation is planned to improve
the power quality at the mine. In addition, the upgrade will
improve the site readiness for future power expansion for projects
such as the trolley assist mine haulage system. The upgrade is
expected to be completed in late 2023
- A technical evaluation is progressing with the goal of
converting a portion of 2021 measured and indicated mineral
resources into mineral reserves, update the life of mine plan and
incorporate the mill optimization projects designed to increase the
mill throughput to 28 million tonnes per year by 2025. Highlights
from the evaluation will be provided in the Company' second quarter
2022 news release in July
- An evaluation is also being planned to assess the potential for
an underground operation and the expansion of production to 32
million tonnes per year
Exploration
In regional exploration at Detour Lake during the first quarter,
the drilling priority remained the completion of infill drilling in
the Saddle and West Detour portions of the deposit to update
mineral resources and mineral reserves at mid-year 2022.
Drilling also continued to test the underground potential as
drilling in the westerly plunge of the deposit is returning wide
intervals including a higher grade portion that supports the
potential to continue growing the "out-pit" mineralization.
Drilling will further investigate the westerly plunge of the
deposit in the upcoming quarters to continue to assess the
underground potential.
This year's budget also incorporates a plan to investigate the
Sunday Lake deformation zone along strike to the west and to the
east of the mine, as well as the lower Detour area that includes
the 58 North deposit.
Recent highlight holes from the deep westerly plunge of the
deposit in the West Pit area include: hole DLM-22-404W,
intersecting 38.2 g/t gold over 3.0 metres at 616 metres depth and
3.5 g/t gold over 45.1 metres at 822 metres depth approximately 500
metres west of previously defined mineralized intersections at
depth in the West Detour Pit area; and hole DLM-22-422W,
intersecting 13.1 g/t gold over 8.7 metres at 688 metres depth,
including 28.6 g/t gold over 3.5 metres at 690 metres depth and 2.8
g/t gold over 14.0 metres at 714 metres depth approximately 250
metres west of previously defined mineralized intersections at
depth in the West Detour Pit area.
Macassa – Higher than Planned Development Rates and Stope
Availability Drive Underground Performance; #4 Shaft Project and
Ventilation Upgrade on Schedule for Commissioning in Late
2022
The Macassa Mine, located in northeastern Ontario, began production in 1933.
Operations have been continuous except for a brief period, when
they were suspended in 1999 due to the depressed gold price.
Underground mining restarted in 2002 and over the last 10 years
production has been predominately from two production areas: the
South Mine Complex (SMC) and the Main Break (MB).
Macassa Mine –
Operating Statistics*
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2022
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
47
|
|
Tonnes of ore milled
per day
|
|
902
|
|
Gold grade
(g/t)
|
|
16.64
|
|
Gold production
(ounces)
|
|
24,488
|
|
Production costs per
tonne (C$)
|
|
$
871
|
|
Minesite costs per
tonne (C$)
|
|
$
523
|
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
1,320
|
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
787
|
|
*In the first quarter
of 2022, the operating statistics are reported for the period from
February 8, 2022 to March 31, 2022.
|
For the period from February 8, 2022
to March 31, 2022, gold production at
Macassa mine was 24,488 ounces, with production costs per tonne of
C$871, production costs per ounce of
$1,320, minesite costs per tonne of
C$523 and total cash costs per ounce
of $787.
The difference between production costs per tonne and minesite
costs per tonne and the difference between production costs per
ounce and total cash costs per ounce are primarily due to the
inventory re-valuation at the forecasted gold price in the period
the inventory was expected to be sold done as part of the Purchase
Price Allocation following the completion of the Merger.
Operational Highlights
- For the complete first quarter of 2022, gold production at
Macassa was 43,943 ounces, in line with forecast. The higher than
forecast mined and milled tonnage was offset by lower mined grades
than anticipated
- Increased underground operational efficiencies due to better
than expected development rates (47% ahead of forecast) and stope
availability drove the higher than forecast ore tonnage mined
- The lower than anticipated gold grade was primarily due to
variability in the high-grade nature of the mineralization. This
variability in grade can result in significant variations in gold
production quarter over quarter
Project Highlights
- In the first quarter of 2022, the planned work on the #4 Shaft
project remained on schedule. On level 6300, the focus was on
developing the new conveyor drift and loading pocket. The
development work to connect the new shaft infrastructure to the
existing mining areas advanced as planned. Completion of the #4
Shaft project is expected in late 2022
- The upgrade of the ventilation system progressed as planned.
This upgrade is expected to increase ventilation capacity from
approximately 300,000 cubic feet per minute to 750,000 cubic feet
per minute to support the increase in underground production in
2023 and 2024. At the end of the first quarter of 2022, three of
the four ventilation raises are completed and the fourth
ventilation raise is expected to break through to surface in the
second quarter of 2022
- The underground excavation of the chamber for the main exhaust
fans began in the first quarter of 2022. The two 3,000 HP fans have
been purchased and delivery is expected in the second quarter of
2022. The fans are expected to be installed in the third quarter of
2022 and commissioned in the fourth quarter of 2022
- Construction to facilitate the increase in the power supply at
Macassa from 22 megawatts to 67 megawatts is expected to commence
in the third quarter of 2022 and the upgrade is expected to be
completed in late 2023
Exploration Highlights
- In the first quarter of 2022, approximately 29,000 metres of
exploration and definition drilling was carried out. The main focus
was on testing the Main Break, the South Mine Complex eastern
extension and west of the Amikougami fault. Highlights include 20.5
g/t gold over 0.8 metres at 2,210 metres depth at the Main Break
and 14.2 g/t gold over 1.4 metres at 1,651 metres depth at the
South Mine Complex eastern extension
Kirkland Lake Regional Update
AK Deposit
In the first quarter of 2022, the previously identified
opportunity to mine the AK deposit from Macassa infrastructure
progressed, with 225 metres of a planned 984 metre exploration
decline from the existing Near Surface Ramp completed to
date. The decline is associated with an exploration campaign
planned to be completed in 2022 to better delineate the deposit and
understand how the AK mineral resources could complement the feed
at the Macassa mill, potentially starting in 2024.
Infill drilling of the AK deposit from surface was initiated in
the first quarter of 2021 [NTD: Confirm date], targeting one of the
higher grade mineral resource areas where historical hole
KLAKC15-87 intercepted 8.8 g/t gold over 14.0 metres (core length)
at a depth of 104 metres. In the first quarter of 2022, two
drill rigs completed nine holes (2,556 metres). Assays
results are expected in the second quarter of 2022.
Upper Beaver – Exploration
In the first quarter of 2022 at Upper Beaver, 18 drill holes
were completed totalling 8,100 metres. Work focused on
filling the gap in the Footwall Zone between 600 and 1,000 metres
depth, and converting inferred mineral resources in the Porphyry
and Footwall zones below 1,400 metres depth.
The latest holes continued to return good gold and copper grades
over significant widths. Among the holes drilled below 1,400
metres depth, highlight hole KLUB21-328W7 intersected 11.4 g/t gold
and 0.38% copper over 4.6 metres at 1,499 metres depth in the
Porphyry zone and 13.1 g/t gold and 0.58% copper over 4.3 metres at
1,536 metres depth in the Footwall zone, including 35.7 g/t gold
and 1.27% copper over 1.3 metres at 1,534 metres depth; and hole
KLUB21-328W13 intersected 3.5 g/t gold and 0.27% copper over 21.6
metres at 1,556 metres depth in the Porphyry zone and 7.4 g/t gold
and 0.40% copper over 14.2 metres at 1,582 metres depth in the
Footwall zone.
Exploration drilling is also underway to investigate for new
mineralized zones at depth along strike laterally. Recent
drilling appears to have encountered a new zone of mineralization
500 metres southeast of the main mineralized zone (assays
pending).
The Company continues to review project development scenarios
for Upper Beaver.
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 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. All site activities ramped back to normal
operating levels from mid-January into February 2022. The
return of the Nunavut based
workforce started on March 14, 2022,
after consultation with the Nunavut Government and other local
stakeholders. The reintegration was completed in early
April 2022.
Meliadine Mine – Millionth Gold Ounce Poured; Full Year
Guidance Unchanged Despite COVID-19 Challenges
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
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore milled
(thousands of tonnes)
|
|
432
|
|
338
|
Tonnes of ore milled
per day**
|
|
4,800
|
|
4,612
|
Gold grade
(g/t)
|
|
6.03
|
|
7.47
|
Gold production
(ounces)
|
|
80,704
|
|
88,003
|
Production costs per
tonne (C$)
|
|
$
230
|
|
$
226
|
Minesite costs per
tonne (C$)
|
|
$
241
|
|
$
219
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
975
|
|
$
679
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
1,002
|
|
$
628
|
|
*In the first
quarter of 2021, the Tiriganiaq open pit had 8,123 ounces of
pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 73 days in the first quarter of
2021
|
Gold production in the first quarter of 2022 decreased when
compared to the prior-year period primarily due to lower gold
grades resulting from an increase in tonnage sourced from the open
pit and lower grade stockpiles, partially offset by higher
throughput levels resulting from the planned expansion of the mill
to 4,800 tpd. The COVID-19 pandemic affected the underground
mine activities particularly in December
2021 and January 2022. To compensate for the shortfall
in mine production in the first quarter of 2022, low-grade
stockpile ore was used to feed the mill.
Production costs per tonne in the first quarter of 2022
increased when compared to the prior-year period due to inventory
adjustments resulting from the consumption of the low-grade
stockpile and the contribution of open pit production costs,
partially offset by higher throughput levels, lower mining costs as
a result of lower underground activities related to lower workforce
availability due to COVID-19 and the timing of unsold
inventory. Production costs per ounce in the first quarter of
2022 increased when compared to the prior-year period due to lower
gold grades and lower production costs per tonne, partially offset
by the timing of unsold inventory.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to inventory
adjustments resulting from the consumption of the low-grade
stockpile and the contribution of open pit production costs,
partially offset by higher throughput levels and lower mining costs
as a result of lower underground activities related to the COVID-19
pandemic. Total cash costs per ounce in the first quarter of
2022 increased when compared to the prior-year period due to lower
gold grades and higher minesite costs per tonne.
Operational Highlights
- On March 9, 2022, the Meliadine
mine poured its millionth ounce of gold. Since the start of the
operation in 2019, the Meliadine mine quickly became a key
cornerstone asset for the Company, with yearly production ranging
from 360,000 to 390,000 ounces of gold and generating strong
operating margins
- In the first quarter of 2022, the COVID-19 pandemic resulted in
lower than planned workforce levels which primarily affected the
underground mine. Both underground development and ore production
were lower than forecast. The processing plant operated as per
planned during the quarter, achieving a run rate of approximately
4,800 tpd
- On April 11, 2022, the Government
of Nunavut announced the end of
the Public Health Emergency and the Company expects impacts from
COVID-19 to reduce considerably going forward. Production is
expected to return to more normal levels for the remainder of the
year. With an expected increase in the grade profile, the Company
believes the mine is well positioned to deliver higher gold
production and declining costs quarter over quarter in 2022
- The permit for the construction of the discharge waterline was
received on January 31, 2022. The
construction of the waterline is expected to start later in 2022
and to be completed in time to start discharging in 2024. Once
built, the discharge waterline will be used on a seasonal basis to
discharge saline water to the sea
- With lower than predicted inflows of saline water underground
and the completion of the surface saline water storage facilities
in 2021, the mine is expected to have sufficient capacity to manage
saline water levels at site until completion of the discharge
waterline. As a result, the Company has decided to suspend the
trucking of saline water for discharge to sea in 2022, which will
reduce costs and the environmental impact associated to
trucking
Projects
- 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. Engineering work and procurement activities are progressing as
per plan. The main contracts for construction of the CIL,
filter-press and power plant buildings and the CIL process tank
were awarded in the second quarter of 2022
Exploration
- In the first quarter of 2022, the Tiriganiaq exploration drift
was advanced by approximately 109 metres and the development of the
second drilling bay was completed. Initial drilling from the first
drill bay is underway and assay results are expected in the second
quarter of 2022
- In the first quarter of 2022, infill and exploration drilling
at the Tiriganiaq and Pump deposits returned significant results.
Highlight intercepts from Tiriganiaq include: Hole M21-3251 in lode
1257 intersecting 6.8 g/t gold over 6.1 metres at 81 metres depth
and 33.2 g/t gold over 2.7 metres at 117 metres depth,
demonstrating potential for near surface mineral resources addition
close to infrastructure; and hole M21-3300 in lode 1000
intersecting 15.7 g/t gold over 6.6 metres at 508 metres depth in a
new ore shoot discovered during the fourth quarter of 2021 that
remains open at depth
Meadowbank Complex – Record Daily Mill Throughput in
March 2022; Operations Well
Positioned to Ramp Up Production Through 2022
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 infrastructure at the
Meadowbank minesite. Additional infrastructure has also been
built at the Amaruq site. Amaruq ore is transported using
long haul off-road type trucks to the mill at the Meadowbank site
for processing. The Amaruq satellite deposit achieved
commercial production on September 30,
2019.
Meadowbank Complex –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore milled
(thousands of tonnes)
|
|
892
|
|
924
|
Tonnes of ore milled
per day
|
|
9,911
|
|
10,267
|
Gold grade
(g/t)
|
|
2.26
|
|
2.94
|
Gold production
(ounces)
|
|
59,765
|
|
79,965
|
Production costs per
tonne (C$)
|
|
$
137
|
|
$
122
|
Minesite costs per
tonne (C$)
|
|
$
156
|
|
$
130
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
1,618
|
|
$
1,092
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
1,811
|
|
$
1,123
|
In the first quarter of 2022, gold production decreased when
compared to the prior-year period primarily due to lower gold
grades resulting from an increase in tonnage sourced from low grade
stockpile and from a lower grade sequence in the open pit. In
the first quarter of 2022, the Meadowbank Complex was affected by
the COVID-19 pandemic and activities were reduced to essential
services from December 22, 2021 to
January 10, 2022. Subsequently,
production activities were gradually ramped up to normal operating
levels into early February 2022. Low grade stockpile was used
to feed the mill as the open pit activities ramped up in January
and to complement open pit production as the mill performed above
forecast in March 2022.
Production costs per tonne in the first quarter of 2022
increased when compared to the prior-year period primarily due to
inventory adjustments resulting from the consumption of the
low-grade stockpile and higher service costs to manage the COVID-19
pandemic, partially offset by the timing of unsold inventory.
Production costs per ounce in the first quarter of 2022 increased
when compared to the prior-year period due to lower gold grades and
higher production costs per tonne, partially offset by the timing
of unsold inventory.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to inventory
adjustments resulting from the consumption of the low-grade
stockpile and higher service costs to manage the COVID-19 pandemic,
partially offset by higher capitalized costs. Total cash
costs per ounce in the first quarter of 2022 increased when
compared to the prior-year period primarily due to lower gold
grades and higher production costs per tonne.
Operational Highlights
- In the first quarter of 2022, the Meadowbank Complex
successfully overcame significant challenges related to COVID-19.
At the start of the year, site activities were reduced to essential
services. The mining operation ramp-up began on January 10, 2022 and the mill restarted in
mid-January 2022
- In the first quarter of 2022, open pit production remained in
line with forecast. Based on solid in-pit drilling performance, the
broken muck inventory increased above two million tonnes before in
preparation for the freshet season
- In the first quarter of 2022, the mill operated above forecast.
In March 2022, the Meadowbank Complex
achieved a record monthly throughput (since the start-up of Amaruq)
of approximately 377,000 tonnes milled, including an all-time daily
record of 14,206 tpd
- The High Pressure Grinding Rolls are expected to be
commissioned in the second quarter of 2022. Combined with the
optimization projects carried out at the mill, the Company expects
to continue to maximize the mill throughput for the remainder of
the year
- This year's caribou migration started in March and, as at the
end of the first quarter of 2021, it has had a minimal impact on
the operation. The Company factors the migration into its
production forecast. Wildlife management is an important priority
and, given the unpredictability of the seasonal migration, the
Company continues to work with government and local stakeholders to
optimize solutions to safeguard wildlife and minimize production
disruptions
- With the open pit entering a higher grade mining sequence and
the ore contribution from underground starting in the second half
of 2022, gold production at the Meadowbank Complex is expected to
increase consistently over the next three quarters of 2022
Underground Project Highlights
- In the first quarter of 2022, the lower workforce availability
related to COVID-19 resulted in delays in the underground
development and the construction of the underground mine
infrastructure
- As of the end of the first quarter of 2022, the underground
development was behind schedule with 810 metres completed compared
to the budgeted development target metres of 1,050 metres. The
Company has established an action plan to mitigate the impact of
the delay and is focused on advancing priority aspects of the
project to ready for production as scheduled later this year
- The commissioning of several key infrastructure projects is
ongoing, including the cemented rock fill plant and the emulsion
plant. The development of the main ventilation raise and the
construction of the main ventilation system were delayed but are
still expected to be delivered in time to achieve the production
plan
- Despite these challenges, the underground project remains on
budget and on schedule. 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 – Drilling Activities Continue to Ramp-Up
with an Ongoing Focus on the Doris Deposit; Madrid Drilling to
Commence in April 2022
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.
On February 18, 2022, the Company
announced that it decided to maintain the suspension of production
activities at the Doris mine, in order to dedicate the
infrastructure of the Hope Bay site to exploration
activities. The Company ramped down the remaining operational
activities at the Doris mine in an orderly fashion over the
remainder of the quarter while ensuring the safety of employees and
the sustainability of the infrastructure. In parallel,
exploration activities were increased, focusing primarily on Doris
(both surface and underground).
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 of the Hope Bay
property.
At the Hope Bay project in the first quarter of 2022, 15,600
metres were drilled in 59 drill holes which mostly tested the Doris
deposit along strike and at depth.
The latest results at Doris show high grades over substantial
widths in multiple areas, including the northern extension of BTD
Extension, in the southern extension of Central (DCN) and at depth
in BTD Connector where new, thick and high-grade intervals were
reported. The results further demonstrate the potential for
the Doris mineral resources to grow significantly and to support
the development of additional underground exploration platforms to
further confirm the size, shape and grade of these new high-grade
mineralized zones.
Highlights from conversion drilling in the southern portion of
the Central area include: 30.8 g/t gold over 3.3 metres at 209
metres depth in hole HBDCN22-50912; and 14.3 g/t gold over 5.9
metres at 231 metres depth in hole HBDCN22-50916.
Highlights from deep exploration drilling in the BTD Connector
area include: 23.0 g/t gold over 5.0 metres at 502 metres depth in
hole HB21-013; 9.4 g/t gold over 14.9 metres at 491 metres depth in
hole HB22-018; and 11.7 g/t gold over 3.0 metres at 569 metres
depth in hole HB21-011.
AUSTRALIA
Agnico Eagle acquired the Fosterville mine on February 8, 2022 as a result of the Merger with
Kirkland Lake Gold. As the largest gold producer in the state
of Victoria, Australia, the 100%
owned Fosterville mine is a
high-grade underground gold mine, located 20 kilometres from the
city of Bendigo. The operation features low-cost gold
production, as well as extensive in-mine and district scale
exploration potential.
Fosterville – Strong Gold
Production due to Higher Than Expected Grade; Exploration Drifts at
Robins Hill and Lower Phoenix Advancing as Planned
Gold production at the Fosterville mine commenced in 1991 from
shallow oxide open pits and heap-leaching operations and was
suspended in 2001 subsequent to the depletion of oxide ore.
In 2005, gold production restarted from an open pit, sulphide
mining operation, with mining activities progressively
transitioning to underground. Based on exploration success,
in particular the discovery of the high grade Eagle and Swan
mineralized zones, the Fosterville
mine output increased rapidly year over year from 2016 to
2020. Exploration activities continue to expand its mineral
reserves and mineral resources as the deposit remains open at depth
in the Harrier, Lower Phoenix and Robbin's Hill areas.
Fosterville Mine –
Operating Statistics*
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2022
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
91
|
|
Tonnes of ore milled
per day
|
|
1,758
|
|
Gold grade
(g/t)
|
|
28.13
|
|
Gold production
(ounces)
|
|
81,827
|
|
Production costs per
tonne (A$)
|
|
$
1,283
|
|
Minesite costs per
tonne (A$)
|
|
$
367
|
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
1,075
|
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
309
|
|
|
*In the first quarter
of 2022, the operating statistics are reported for the period from
February 8, 2022 to March 31, 2022.
|
For the period from February 8, 2022
to March 31, 2022, gold production at
the Fosterville mine was 81,827
ounces, with production costs per tonne of A$1,283, production costs per ounce of
$1,075, minesite costs per tonne of
A$367 and total cash costs per ounce
of $309.
The difference between production costs per tonne and minesite
costs per tonne and the difference between production costs per
ounce and total cash costs per ounce are primarily due to the
inventory re-valuation at the forecasted gold price in the period
the inventory was expected to be sold done as part of the Purchase
Price Allocation following the completion of the Merger.
Operational Highlights
- For the complete first quarter of 2022, the Fosterville mine delivered solid operational
performance with gold production of 126,707 ounces, which was above
forecast. The lower than forecast mined and milled tonnage was
offset by higher mined grade than anticipated
- Mine production was affected by lower workforce availability
related to COVID-19, a reduction in the availability of paste
backfill in January and February and primary ventilation operating
restrictions related to low frequency noise constraints
- The higher than anticipated gold grade resulted from a
combination of grade over-performance from the stopes mined in the
Swan Zone during February and March and slight adjustments to the
mining sequence
- Based on the mining sequence, Fosterville is expected to have lower gold
production in the next two quarters and the fourth quarter is
expected to be the strongest quarter of the year based on the
expected timing of mining ultra-high grade stopes. Based on solid
performance in the first quarter of 2022 and expected strong
production in the fourth quarter of 2022, the Company believes the
mine is well positioned to deliver on guidance for this year
- The Fosterville mine has
commenced an Environmental Effects Study that included the
establishment of a stakeholder committee (which includes various
Government regulatory bodies, indigenous peoples, City of Greater
Bendigo representatives and local area landholders). A variety of
risk impacts and mitigation strategies (air quality, water quality,
noise abatement and other potential community impacts) will be
addressed as part of the sustained operations project for the next
10 years
Project Highlights
- The enclosure of the SAG mill building with attenuation
paneling was completed in the first quarter of 2022. The objective
of the project is to reduce noise by 10dB at the source and 2dB at
receptors closer to neighbouring properties
- The contract to raise bore four underground ventilation raises
at Phoenix and Harrier has been
awarded. Raise boring of the first ventilation raise is expected to
begin in the third quarter of 2022. Completion of the full
ventilation upgrade project is expected to be completed in the
first half of 2024
Exploration
- In the first quarter of 2022, the development of Robins Hill
twin exploration drifts was behind forecast due to the requirement
for the installation of additional ground support. The development
of the exploration drift at the Lower Phoenix was in line with
forecast. Each of the exploration drifts are expected to be
completed early in the third quarter of 2022. Once completed, these
exploration platforms will provide key access for exploration and
infill drilling in the Cygnet, Lower Phoenix and Robbins Hill areas
with the objective to replace mineral reserves and to add to
mineral resources
- Drilling in the Cygnet area continues to return high grade but
narrow intercepts, with highlight holes returning 174 g/t gold over
2.2 metres at 1,221 metres depth and 54.4 g/t gold over 1.4 metres
at 1,296 metres depth. Exploration drilling in the Robins Hill area
also confirmed the extension of the mineralization down plunge,
with highlight intercept yielding 5.1 g/t gold over 6.1 metres at
1,377 metres depth at approximately 300 metres down-plunge of the
current mineral resource envelope
FINLAND
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe. The expansion of the Kittila mill to 2.0 million
tonnes per year 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 – Lower Than Expected Mill Availability and Grades
Impacted First Quarter Production; Mining Sequence Being Optimized
to Improve Grades
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore milled
(thousands of tonnes)
|
|
461
|
|
494
|
Tonnes of ore milled
per day
|
|
5,122
|
|
5,489
|
Gold grade
(g/t)
|
|
3.6
|
|
4.37
|
Gold production
(ounces)
|
|
45,508
|
|
60,716
|
Production costs per
tonne (EUR)
|
|
€
95
|
|
€
83
|
Minesite costs per
tonne (EUR)
|
|
€
90
|
|
€
82
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
1,087
|
|
$
801
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
1,039
|
|
$
798
|
Gold production in the first quarter of 2022 decreased when
compared to the prior-year period primarily due to lower gold
grades, lower throughput and lower metallurgical recoveries.
In the first quarter of 2022, the gold grades were lower than
anticipated due to a delay in reaching the higher grade stopes in
the Roura Zone due to poor ground conditions and as a result of
higher dilution in the secondary stopes. Throughput levels
were affected by a slower start-up of the mill following a planned
10-day shutdown of the autoclave for regular maintenance.
Production costs per tonne in the first quarter of 2022
increased when compared to the prior-year period primarily due to
higher maintenance costs related to the planned 10-day shutdown of
the autoclave and higher mine and mill production costs resulting
from higher unit costs for fuel, power, ground support and
consumables, partially offset by inventory adjustments.
Production costs per ounce in the first quarter of 2022
increased when compared to the prior-year period due to lower gold
grades, higher production costs per tonne and the timing of unsold
inventory, partially offset by the weakening of the Euro against
the U.S. dollar.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to the reasons
described above. Total cash costs per ounce in the first
quarter of 2022 increased when compared to the prior-year period
due to lower gold grades and higher production costs per tonne,
partially offset by the weakening of the Euro against the U.S.
dollar.
Operational Highlights
- Gold production of 45,508 ounces in the first quarter of 2022
was below forecast due to lower grades, lower throughput and lower
recoveries as described above. The Company expects production
levels to normalize over the remainder of the year
- Mill feed tonnes were slightly below forecast mainly due to
lower than expected autoclave availability during the restart of
the mill after the planned shutdown in February 2022. Availability returned to more
normal levels in March and achieved an all-time record in monthly
mill feed volume at 191,316 tonnes
- The Company is focused on grade management for the remainder of
2022. Optimization of the mining sequence, including the
prioritization of the development of the higher grade stopes at
Roura, is expected to improve grades in the second quarter of
2022
- During the first quarter of 2022, production drilling was 80%
completed via tele-remote assisted drilling. This was the highest
percentage of tele-remote production drilling achieved to-date and
has allowed for an increase in metres drilled per day. The Company
continues to evaluate future automation opportunities while
collaborating with equipment manufacturers
Project Highlights
- Despite challenges from COVID-19, shaft construction continues
to progress as planned. Work on the 875-level shaft station will
continue until the end of May and shaft sinking is expected to be
completed in the third quarter of 2022. Commissioning of the
production hoist remains on schedule for the fourth quarter of
2022
- 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 first quarter of 2022, deep exploration drilling
confirmed the potential to extend gold mineralization at depth,
with highlight hole RIE21-700E returning 6.3 g/t gold over 13.6
metres at 1,948 metres depth (previously released February 23, 2022) and 5.7 g/t gold over 3.7
metres at 1,973 metres depth in the Sizar Zone
MEXICO
Agnico Eagle's Mexican 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 – Production
Affected by Higher Than Expected Underground Rehabilitation;
Initial Production Commences at Reyna de Plata; Cubiro Development
Ore Yields Higher Grades Than Anticipated
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore processed
(thousands of tonnes)
|
|
384
|
|
493
|
Tonnes of ore processed
per day
|
|
4,267
|
|
5,478
|
Gold grade
(g/t)
|
|
2.14
|
|
1.91
|
Gold production
(ounces)
|
|
25,170
|
|
29,175
|
Production costs per
tonne
|
|
$
85
|
|
$
65
|
Minesite costs per
tonne
|
|
$
87
|
|
$
69
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
1,293
|
|
$
1,097
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
1,078
|
|
$
838
|
Gold production in the first quarter of 2022 decreased when
compared to the prior-year period primarily due to lower throughput
levels resulting from lower open pit production following the
depletion of the Sinter pit and the higher rehabilitation
requirements at the Santo Niño and Cerro
Colorado zones, partially offset by higher gold grades as
production is solely originating from underground.
Production costs per tonne in the first quarter of 2022
increased when compared to the prior-year period primarily due to
lower throughput levels, higher mining costs resulting from higher
ground support requirements, higher processing costs related to
higher unit prices for reagents and grinding media and the timing
of inventory, partially offset by lower open pit costs.
Production costs per ounce in the first quarter of 2022 increased
when compared to the prior-year period due to higher production
costs per tonne and the timing of the inventory, partially offset
by higher gold grades.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to reasons
described above. Total cash costs per ounce in the first
quarter of 2022 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.
Operational Highlights
- At Santo Niño and Cerro
Colorado, significantly more rehabilitation work than
expected and resulted in lower than planned advance in underground
development and stope preparation. These delays affected overall
underground production and resulted in low ore availability at the
mill and lower than forecast gold production
- At Sinter, the ventilation system was completed and
commissioned in the first quarter of 2022. In the second quarter of
2022, the paste fill line is expected to be commissioned and Sinter
underground is expected to reach its full production capacity
- At Reyna de Plata, open pit pre-stripping activities at Pit 1
progressed as per plan and are approximately 25% complete. The
lower section of Pit 2 provided initial ore production of
approximately 47,000 tonnes
- The increased production capacity at Sinter and the
contribution of open pit ore from Reyna de Plata is expected to
provide additional flexibility to the Pinos Altos production profile
- At Creston Mascota, residual recovery from the heap leach pad
continued throughout the first quarter of 2022 and resulted in a
production of 1,006 ounces of gold at production costs per ounce of
$611 and total cash costs of
$407 per ounce. Irrigation of the
heap leach pad and residual leaching will continue throughout the
second quarter of 2022
Project Highlights
- At the Cubiro deposit the main pumping system underground was
completed and commissioned in the first quarter of 2022.
Underground development advanced by 874 metres and included the
excavation of approximately 8,000 tonnes of ore at a higher than
expected gold grade of 4.37 g/t
- Pre-production activities will continue through 2022 into 2023.
Initial production is expected in the second half of 2023. Once
production commences, Cubiro is expected to provide additional
production flexibility to the Pinos
Altos operations
La India – Solid Operating
Performance and Optimization Initiatives Result in Cost
Improvements; Pre-Stripping of El Realito Pit Ramping Up
The 100% owned La India mine in Sonora, Mexico, located approximately 70
kilometres northwest of the Company's Pinos Altos mine, achieved commercial
production in February 2014.
La India Mine –
Operating Statistics
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March 31,
2022
|
|
March 31,
2021
|
Tonnes of ore processed
(thousands of tonnes)
|
|
1,563
|
|
1,642
|
Tonnes of ore processed
per day
|
|
17,367
|
|
18,244
|
Gold grade
(g/t)
|
|
0.57
|
|
0.43
|
Gold production
(ounces)
|
|
21,702
|
|
17,033
|
Production costs per
tonne
|
|
$
11
|
|
$
10
|
Minesite costs per
tonne
|
|
$
12
|
|
$
10
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
817
|
|
$
948
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
820
|
|
$
936
|
Gold production in the first quarter of 2022 increased when
compared to the prior-year period primarily due to higher gold
grades and higher recovery as the heap leach still benefited from
the delayed recovery of the ore stacked in the second quarter of
2021 and gradually irrigated through the second half of the
year.
Production costs per tonne in the first quarter of 2022 were
essentially the same when compared to the prior-year period.
Production costs per ounce in the first quarter of 2022 decreased
when compared to the prior-year period due to higher gold
grades.
Minesite costs per tonne in the first quarter of 2022 increased
when compared to the prior-year period primarily due to the higher
cement and cyanide consumption related to the high clay content of
the ore and higher open pit costs resulting from a higher stripping
ratio at the Main Zone. The impact of the clay content on
cyanide consumption was partially offset by the improved irrigation
at the heap leach pad with the installation of drippers.
Total cash costs per ounce in the first quarter of 2022 decreased
when compared to the prior-year period due to higher gold grades
and higher by-product revenues from higher silver volumes,
partially offset by higher minesite costs per tonne.
Operational Highlights
- In the first quarter of 2022, despite challenges related to
COVID-19, the La India mine delivered a strong operational
performance, with increased tonnage placed on the heap leach than
forecast
- The water storage facilities at the end of the first quarter of
2022 were at approximately 50% of their maximum capacities. With
this water storage, the La India mine is expected to be able to
operate until the start of the next rainy season which is expected
in June 2022
- The Main Zone pit is expected to be depleted in the third
quarter of 2022. Ore production will then fully transition to the
La India pit and the El Realito
pit
Project Highlights
- Pre-stripping of the El
Realito pit is approximately 39% complete and the first gold
production was started in the first quarter of 2022. Pre-stripping
activities are in line with forecast and are expected to be
completed in the third quarter of 2022
About Agnico Eagle
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", "net
debt", "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. As discussed above
the Purchase Price Allocation was excluded from total cash costs
and AISC. 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 producing 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 produces (iv) it is a
method used by management and the Board of Directors 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 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.
Net debt is calculated by adjusting the total of the current
portion of long-term debt and non-current long-term debt as
recorded on the consolidated balance sheet for deferred financing
costs and cash and cash equivalents. Management uses net debt to
determine the overall debt position and to evaluate future debt
capacity of the Company.
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 these measures 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
April 28, 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; statements
regarding the NCIB, 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, 2021
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2021 ("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; 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
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;
the volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, project
development, capital expenditures and other costs; foreign exchange
rate fluctuations; financing of additional capital requirements;
cost of exploration and development programs; seismic activity at
the Company's operations, including the LaRonde Complex and Goldex
mine; mining risks; community protests, including by First Nations
groups; risks associated with foreign operations; governmental and
environmental regulation; the volatility of the Company's stock
price; and risks associated with the Company's currency, fuel and
by-product metal derivative strategies. For a more detailed
discussion of such risks and other factors that may affect the
Company's ability to achieve the expectations set forth in the
forward-looking statements contained in this news release, see the
AIF and MD&A filed on SEDAR at www.sedar.com and included in
the Form 40-F filed on EDGAR at www.sec.gov, as well as the
Company's other filings with the Canadian securities regulators and
the SEC. Other than as required by law, the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101").
For United States reporting
purposes, the SEC 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, Quebec; relating
to Nunavut and Finland operations has been approved by
Dominique Girard, Eng., Executive Vice President & Chief
Operating Officer – Nunavut,
Quebec & Europe; relating to Ontario, Australia and Mexico operations has been approved by
Natasha Vaz, Executive Vice
President & Chief Operating Officer – Ontario, Australia & Mexico; relating to exploration, mineral
reserves and mineral resources have been approved by Guy Gosselin,
Eng. and P.Geo., Executive Vice President, Exploration and
Eric Kallio, P.Geo, Executive Vice
President, Exploration Strategy & Growth, each of whom is a
"Qualified Person" for the purposes of NI 43-101.
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
|
$1.25
|
Not
applicable
|
Not
applicable
|
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
Assumptions used for the December 31,
2021 mineral reserves estimate at all mines and advanced
projects held by Kirkland Lake Gold on December 31, 2021
|
Gold
(US$/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 March 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
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 43-101
Technical report as at July 26, 2021 (October 15, 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 – SELECTED EXPLORATION
RESULTS AND DRILL COLLAR COORDINATES
Recent selected exploration drill results from Goldex, Detour
Lake, Macassa, Amalgamated Kirkland, Upper Beaver, Meliadine, Hope
Bay, Fosterville and
Kittila
Mine or Project
/
Zone
|
Drill
hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true
width
(metres)
|
Gold
grade
(g/t)
(uncapped)
|
Gold
grade
(g/t)
(capped)
|
Copper
grade
(%)
|
Goldex / South
Zone
|
GD90-180
|
160.0
|
164.0
|
955
|
3.0
|
21.1
|
21.1
|
-
|
Goldex / South
Zone
|
GD90-182
|
110.0
|
117.0
|
933
|
3.0
|
7.2
|
7.2
|
-
|
Goldex / South
Zone
|
GD128-048
|
202.0
|
208.0
|
1,288
|
5.7
|
19.4
|
19.4
|
-
|
Goldex / South
Zone
|
GD128-050
|
85.0
|
92.0
|
1,288
|
5.3
|
10.2
|
10.2
|
-
|
Detour Lake / West
Pit
|
DLM21-328+
|
555.5
|
572.9
|
451
|
16.0
|
30.9
|
30.9
|
-
|
Detour Lake / West
Pit
|
DLM22-404W
|
729.0
|
732.3
|
616
|
3.0
|
38.2
|
38.2
|
-
|
|
and
|
978.0
|
1027.0
|
822
|
45.1
|
3.5
|
3.5
|
-
|
Detour Lake / West
Pit
|
DLM22-422W
|
852.0
|
862.0
|
688
|
8.7
|
13.1
|
13.1
|
-
|
|
including
|
858.0
|
862.0
|
690
|
3.5
|
28.6
|
28.6
|
-
|
|
and
|
885.0
|
901.0
|
714
|
14.0
|
2.8
|
2.8
|
-
|
Macassa / SMC
East
|
53-4552
|
300.4
|
302.4
|
1,651
|
1.4
|
14.2
|
14.2
|
-
|
Macassa / Main
Break
|
58-723
|
406.4
|
408.4
|
2,210
|
0.8
|
20.5
|
20.5
|
-
|
Amalgamated Kirkland
(historical)
|
KLAKC15-87
|
109.0
|
123.0
|
104
|
14.0***
|
8.8
|
8.8
|
-
|
Upper Beaver /
Porphyry
|
KLUB21-328W7
|
1,679.7
|
1,685.3
|
1,499
|
4.6
|
11.4
|
11.4
|
0.38
|
Upper Beaver /
Footwall
|
KLUB21-328W7
|
1,722.4
|
1,727.5
|
1,536
|
4.3
|
13.1
|
13.1
|
0.58
|
|
including
|
1,722.4
|
1,724.0
|
1,534
|
1.3
|
35.7
|
35.7
|
1.27
|
Upper Beaver /
Porphyry
|
KLUB21-328W13
|
1,700.1
|
1,725.0
|
1,556
|
21.6
|
3.5
|
3.5
|
0.27
|
Upper Beaver /
Footwall
|
KLUB21-328W13
|
1,732.5
|
1,751.0
|
1,582
|
14.2
|
7.4
|
7.4
|
0.40
|
Meliadine / Tiriganiaq
Lode 1257
|
M21-3251
|
91.7
|
97.8
|
80.6
|
6.1
|
6.8
|
6.8
|
-
|
Meliadine / Tiriganiaq
Lode 1087
|
and
|
133.5
|
136.2
|
116.8
|
2.7
|
46.8
|
33.2
|
-
|
Meliadine / Tiriganiaq
Lode 1000
|
M21-3300
|
530.4
|
537.0
|
508
|
6.6
|
15.7
|
15.7
|
-
|
|
including
|
530.4
|
533.8
|
506
|
3.4
|
29.1
|
29.1
|
-
|
Hope Bay / Doris / BTD
Ext
|
HBDBE22-50886
|
130.5
|
134.0
|
329
|
3.5
|
41.5
|
20.9
|
|
Hope Bay / /Doris / DCN
3
|
HBDCN22-50912
|
94.9
|
102.6
|
231
|
5.9
|
19.7
|
14.3
|
-
|
Hope Bay / Doris / DCN
3
|
HBDCN22-50916
|
116.4
|
120.9
|
209
|
3.3
|
45.1
|
30.8
|
-
|
Hope Bay / Doris / BCO
WL
|
HBD-21-011
|
656.0
|
659.1
|
569
|
3.0
|
11.7
|
11.7
|
-
|
Hope Bay / Doris / BCO
WL
|
HBD-21-013
|
614.5
|
619.7
|
502
|
5.0
|
23.0
|
23.0
|
-
|
Hope Bay / Doris / BCO
WL
|
HBD-22-018
|
610.7
|
626.0
|
491
|
14.9
|
9.4
|
9.4
|
-
|
Fosterville / Cygnet /
Ptarmigan
|
UDH4191
|
173
|
176
|
1,221
|
2.2
|
174.4
|
174.4
|
-
|
Fosterville / Cygnet /
Pen
|
UDH4254
|
121
|
123
|
1,296
|
1.4
|
54.5
|
54.5
|
-
|
Fosterville / Robbin's
Hill / Curie
|
UDR003A
|
1,029
|
1,047
|
1,377
|
6.1
|
5.1
|
5.1
|
-
|
Kittila / Sisar
Deep
|
RIE21-700E**
|
1,137.3
|
1,157.0
|
1,948
|
13.6
|
6.3
|
6.3
|
-
|
|
and
|
1,195.8
|
1,201.0
|
1,973
|
3.7
|
5.7
|
5.7
|
-
|
* Holes for Detour
Lake, Macassa, AK, Fosterville and Kittila are uncapped. In
the South Zone at Goldex, a capping factor was used for individual
assays of 95 g/t gold and the mill-feed cut-off grade used varies
between 1.73 and 1.93 g/t gold depending of the vein type. At
Upper Beaver, holes in the Deep East Porphyry and Footwall zones
use a capping factor of 90 g/t gold. At Meliadine, capping
factors are 250 g/t gold for Lode 1000, 100 g/t gold for Lode 1087
and 160 g/t gold for Lode 1257. Results from the Doris
deposit at Hope Bay use a capping factor of 50 g/t
gold.
|
** The first intercept
of hole RIE21-700E was previously released on February 23, 2022 and
the second intercept is newly released.
|
*** Core length; true
width undetermined.
|
+ Previously released
on February 10, 2022.
|
EXPLORATION DRILL COLLAR
COORDINATES
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres
above sea
level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
Goldex
|
GD90-180
|
5330701
|
286606
|
-589
|
262
|
-24
|
183
|
GD90-182
|
5330702
|
286606
|
-589
|
268
|
-23
|
195
|
GD128-048
|
5330285
|
287036
|
-964
|
41
|
-2
|
313
|
GD128-050
|
5330368
|
287080
|
-958
|
359
|
-21
|
228
|
Detour Lake
|
DLM21-328
|
5541784
|
587804
|
286
|
178
|
-58
|
1,080
|
DLM22-404W
|
5541975
|
587280
|
286
|
174
|
-62
|
531
|
DLM22-422W
|
5541845
|
587563
|
286
|
176
|
-58
|
1,075
|
Macassa
|
53-4552
|
5332023
|
570296
|
-1,258
|
318
|
-11
|
363
|
58-723
|
5332023
|
569630
|
-1,476
|
317
|
-75
|
579
|
Amalgamated
Kirkland
|
KLAKC15-87
|
5331159
|
569897
|
332
|
357
|
-65
|
136
|
Upper Beaver
|
KLUB21-328W7
|
5337074
|
591948
|
320
|
131
|
-71
|
1,806
|
KLUB21-328W13
|
5337074
|
591948
|
320
|
131
|
-71
|
1,833
|
Meliadine
|
M21-3251
|
6988485
|
540920
|
101
|
195
|
-68
|
294
|
M21-3300
|
6988702
|
540352
|
101
|
171
|
-81
|
591
|
Hope Bay
|
HBDBE22-50886
|
7560336
|
433996
|
349
|
97
|
33
|
207
|
HBDCN22-50912
|
7557546
|
433781
|
-197
|
115
|
5
|
125
|
HBDCN22-50916
|
7557546
|
433781
|
-196
|
122
|
13
|
126
|
HBD21-011
|
7559272
|
433224
|
58
|
85
|
-71
|
985
|
HBD21-013
|
7559272
|
433224
|
58
|
88
|
-65
|
1,044
|
HBD22-018
|
7559272
|
433224
|
57
|
76
|
-63
|
782
|
Fosterville
|
UDH4191
|
6,816
|
1,450
|
-1,045
|
38
|
-9
|
198
|
UDH4254
|
6,495
|
1,512
|
-1,052
|
104
|
-44
|
205
|
UDR003A
|
10,752
|
2,814
|
-242
|
16
|
-81
|
1,203
|
Kittila
|
RIE21-700E
|
7538639
|
2558645
|
-778
|
90
|
-75
|
1,254
|
* Coordinate
Systems:
|
NAD 1983 UTM Zone 18N
for Goldex; NAD 1983 UTM Zone 17N for Detour Lake, Macassa,
Amalgamated Kirkland and Upper Beaver; NAD 1983 UTM Zone 14N for
Meliadine; NAD 1983 UTM Zone 13N for Hope Bay; MGA94 Zone 55 for
Fosterville; Finnish Coordinate System KKJ Zone 2 for
Kittila.
|
APPENDIX – FINANCIALS
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
Operating
margin(i):
|
|
|
|
|
|
Revenues from mining
operations
|
|
$
1,325,688
|
|
|
$ 949,623
|
Production
costs
|
|
661,735
|
|
|
417,376
|
Total operating
margin(i)
|
|
663,953
|
|
|
532,247
|
Operating
margin(i) by mine:
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
LaRonde
mine
|
|
103,564
|
|
|
93,728
|
LaRonde
Zone 5 mine
|
|
16,656
|
|
|
12,598
|
Canadian
Malartic mine(ii)
|
|
79,302
|
|
|
103,748
|
Goldex
mine
|
|
37,118
|
|
|
38,739
|
Ontario
|
|
|
|
|
|
Detour
Lake mine
|
|
128,058
|
|
|
—
|
Macassa
mine
|
|
24,155
|
|
|
—
|
Nunavut
|
|
|
|
|
|
Meliadine
mine
|
|
84,279
|
|
|
111,216
|
Meadowbank
Complex
|
|
(5,198)
|
|
|
49,950
|
Hope Bay
mine
|
|
144
|
|
|
11,230
|
Australia
|
|
|
|
|
|
Fosterville mine
|
|
106,856
|
|
|
—
|
Europe
|
|
|
|
|
|
Kittila
mine
|
|
46,111
|
|
|
58,703
|
Mexico
|
|
|
|
|
|
Pinos
Altos mine
|
|
19,431
|
|
|
26,426
|
Creston
Mascota mine
|
|
1,177
|
|
|
7,634
|
La India
mine
|
|
22,300
|
|
|
18,275
|
Total operating
margin(i)
|
|
663,953
|
|
|
532,247
|
Amortization of
property, plant and mine development
|
|
260,748
|
|
|
177,793
|
Exploration, corporate
and other
|
|
228,638
|
|
|
111,289
|
Income before income
and mining taxes
|
|
174,567
|
|
|
243,165
|
Income and mining taxes
expense
|
|
64,815
|
|
|
97,926
|
Net income for the
period
|
|
$ 109,752
|
|
|
$ 145,239
|
Net income per
share — basic
|
|
$
0.29
|
|
|
$
0.56
|
Net income per
share — diluted
|
|
$
0.28
|
|
|
$
0.56
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
Cash provided by
operating activities
|
|
$ 507,432
|
|
|
$ 366,642
|
Cash used in investing
activities
|
|
$ 535,652
|
|
|
$
(538,123)
|
Cash used in financing
activities
|
|
$
(167,858)
|
|
|
$
(100,134)
|
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
|
Gold
(per ounce)
|
|
$
1,880
|
|
|
$
1,780
|
Silver
(per ounce)
|
|
$
24.11
|
|
|
$
26.13
|
Zinc
(per tonne)
|
|
$
3,480
|
|
|
$
2,743
|
Copper
(per tonne)
|
|
$
10,243
|
|
|
$
8,958
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
|
|
|
|
Payable
production(iii):
|
|
|
|
Gold
(ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde mine
|
87,549
|
|
75,389
|
LaRonde Zone 5 mine)
|
17,488
|
|
17,689
|
Canadian Malartic mine(ii)
|
80,509
|
|
89,550
|
Goldex mine
|
34,445
|
|
34,650
|
Ontario
|
|
|
|
Detour Lake mine
|
100,443
|
|
—
|
Macassa mine
|
24,488
|
|
—
|
Nunavut
|
|
|
|
Meliadine mine
|
80,704
|
|
96,126
|
Meadowbank Complex
|
59,765
|
|
79,965
|
Hope Bay mine
|
—
|
|
12,259
|
Australia
|
|
|
|
Fosterville mine
|
81,827
|
|
—
|
Europe
|
|
|
|
Kittila mine
|
45,508
|
|
60,716
|
Mexico
|
|
|
|
Pinos Altos mine
|
25,170
|
|
29,175
|
Creston Mascota mine
|
1,006
|
|
4,252
|
La
India mine
|
21,702
|
|
17,033
|
Total gold
(ounces)
|
660,604
|
|
516,804
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde mine
|
153
|
|
203
|
LaRonde Zone 5 mine
|
2
|
|
3
|
Canadian Malartic mine(ii)
|
74
|
|
82
|
Goldex mine
|
1
|
|
—
|
Ontario
|
|
|
|
Detour Lake mine
|
50
|
|
—
|
Macassa mine
|
3
|
|
—
|
Nunavut
|
|
|
|
Meliadine mine
|
9
|
|
7
|
Meadowbank Complex
|
18
|
|
24
|
Hope Bay mine
|
—
|
|
—
|
Australia
|
|
|
|
Fosterville mine
|
8
|
|
—
|
Europe
|
|
|
|
Kittila mine
|
3
|
|
3
|
Mexico
|
|
|
|
Pinos Altos mine
|
256
|
|
373
|
Creston Mascota mine
|
4
|
|
36
|
La
India mine
|
28
|
|
16
|
Total silver (thousands
of ounces)
|
609
|
|
747
|
|
|
|
|
Zinc
(tonnes)
|
1,069
|
|
1,867
|
Copper
(tonnes)
|
769
|
|
752
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
|
|
|
|
Payable metal
sold:
|
|
|
|
Gold
(ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde mine
|
70,967
|
|
75,285
|
LaRonde Zone 5 mine
|
17,595
|
|
14,314
|
Canadian Malartic mine(ii)
|
72,268
|
|
83,556
|
Goldex mine
|
33,884
|
|
34,358
|
Ontario
|
|
|
|
Detour Lake mine
|
131,837
|
|
—
|
Macassa mine
|
29,530
|
|
—
|
Nunavut
|
|
|
|
Meliadine mine
|
87,772
|
|
98,349
|
Meadowbank Complex
|
48,755
|
|
76,281
|
Hope Bay mine
|
98
|
|
20,221
|
Australia
|
|
|
|
Fosterville mine
|
101,950
|
|
—
|
Europe
|
|
|
|
Kittila mine
|
51,615
|
|
59,597
|
Mexico
|
|
|
|
Pinos Altos mine
|
24,787
|
|
27,613
|
Creston Mascota mine
|
855
|
|
4,878
|
La
India mine
|
21,009
|
|
18,834
|
Total gold
(ounces)
|
692,922
|
|
513,286
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
Quebec
|
|
|
|
LaRonde mine
|
160
|
|
199
|
LaRonde Zone 5 mine
|
4
|
|
3
|
Canadian Malartic mine(ii)
|
79
|
|
67
|
Goldex mine
|
1
|
|
—
|
Ontario
|
|
|
|
Detour Lake mine
|
50
|
|
—
|
Macassa mine
|
3
|
|
—
|
Nunavut
|
|
|
|
Meliadine mine
|
9
|
|
8
|
Meadowbank Complex
|
12
|
|
19
|
Hope Bay mine
|
—
|
|
—
|
Australia
|
|
|
|
Fosterville mine
|
8
|
|
—
|
Europe
|
|
|
|
Kittila mine
|
4
|
|
2
|
Mexico
|
|
|
|
Pinos Altos mine
|
249
|
|
361
|
Creston Mascota mine
|
7
|
|
50
|
La
India mine
|
26
|
|
19
|
Total silver (thousands
of ounces):
|
612
|
|
728
|
|
|
|
|
Zinc
(tonnes)
|
1,034
|
|
2,660
|
Copper
(tonnes)
|
766
|
|
754
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
|
|
|
|
Total cash costs per
ounce of gold produced — co-product
basis(v):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
$
674
|
|
$
727
|
LaRonde
Zone 5 mine
|
979
|
|
766
|
Canadian
Malartic mine(ii)(iv)
|
813
|
|
640
|
Goldex
mine
|
777
|
|
623
|
Ontario
|
|
|
|
Detour
Lake mine(iv)
|
612
|
|
—
|
Macassa
mine(iv)
|
790
|
|
—
|
Nunavut
|
|
|
|
Meliadine
mine(vi)
|
1,005
|
|
630
|
Meadowbank
Complex
|
1,815
|
|
1,129
|
Hope Bay
mine
|
—
|
|
929
|
Australia
|
941
|
|
1,079
|
Fosterville mine
|
311
|
|
—
|
Europe
|
|
|
|
Kittila
mine
|
1,041
|
|
799
|
Mexico
|
|
|
|
Pinos
Altos mine
|
1,327
|
|
1,165
|
Creston
Mascota mine
|
542
|
|
490
|
La India
mine
|
852
|
|
969
|
Weighted average total
cash costs per ounce of gold produced
|
$
854
|
|
$
797
|
|
|
|
|
Total cash costs per
ounce of gold produced — by-product
basis(v):
|
|
|
|
Quebec
|
|
|
|
LaRonde
mine
|
$
478
|
|
$
490
|
LaRonde
Zone 5 mine
|
973
|
|
761
|
Canadian
Malartic mine(ii)(iv)
|
792
|
|
617
|
Goldex
mine
|
777
|
|
623
|
Ontario
|
|
|
|
Detour
Lake mine(iv)
|
600
|
|
—
|
Macassa
mine(iv)
|
787
|
|
—
|
Nunavut
|
|
|
|
Meliadine
mine(vi)
|
1,002
|
|
628
|
Meadowbank
Complex
|
1,811
|
|
1,123
|
Hope Bay
mine
|
—
|
|
929
|
Australia
|
|
|
|
Fosterville mine
|
309
|
|
—
|
Europe
|
|
|
|
Kittila
mine
|
1,039
|
|
798
|
Mexico
|
|
|
|
Pinos
Altos mine
|
1,078
|
|
838
|
Creston
Mascota mine
|
407
|
|
193
|
La India
mine
|
820
|
|
936
|
Weighted average total
cash costs per ounce of gold produced
|
$
811
|
|
$
734
|
|
|
|
|
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 and "Reconciliation of
Non-GAAP Financial Performance Measures - Reconciliation of
Operating Margin to Net Income" for a reconciliation of this
measure to the recent IFRS measure.
|
(ii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(iii) Payable
production (a non-GAAP non-financial performance measure) is
the quantity of mineral produced during a period contained in
products that are or will be sold by the Company, whether such
products are sold during the period or held as inventories at the
end of the period. Payable production for the three months
ended March 31, 2011 includes 8,123 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.
|
(iv) The Canadian
Malartic mine's payable metal sold excludes the 5.0% net smelter
return royalty granted to Osisko Gold Royalties Ltd. The
Detour Lake mine's payable metal sold excludes the net smelter
royalty transferred to Franco-Nevada Corporation.
|
(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 ''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 calculation and use
of total cash cost per ounce of gold produced and "Reconciliation
of Non-GAAP Financial Performance Measures - Reconciliation of
Production Costs to Total Cash Cost per Ounce of Gold Produced by
Mine and Reconciliation of Production COsts to Minesite Cost per
Tonne by Mine" for a reconciliation of these measures to the recent
IFRS measure.
|
(vi) The Meliadine
mine's cost calculations per ounce of gold produced for the three
months ended March 31, 2021 exclude 8,123 ounces of payable gold
production, which were produced prior to the achievement of
commercial production at the Tiriganiaq open pit deposit on August
15, 2021.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
(thousands of United
States dollars, except share amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
As at
|
|
As at
|
|
March 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
Restated(i)
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
1,061,995
|
|
$
185,786
|
Trade
receivables
|
10,716
|
|
13,545
|
Inventories
|
1,133,619
|
|
878,944
|
Income
taxes recoverable
|
69,828
|
|
7,674
|
Fair value
of derivative financial instruments
|
27,396
|
|
12,305
|
Other
current assets
|
266,075
|
|
204,134
|
Total current
assets
|
2,569,629
|
|
1,302,388
|
Non-current
assets:
|
|
|
|
Goodwill
|
2,212,251
|
|
407,792
|
Property,
plant and mine development
|
17,690,519
|
|
7,675,595
|
Investments
|
450,879
|
|
343,509
|
Deferred
income and mining tax asset
|
—
|
|
133,608
|
Other
assets
|
407,241
|
|
353,198
|
Total assets
|
$
23,330,519
|
|
$
10,216,090
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable and accrued liabilities
|
$
633,805
|
|
$
414,673
|
Share
based liabilities
|
10,968
|
|
—
|
Interest
payable
|
25,487
|
|
12,303
|
Income
taxes payable
|
20,376
|
|
47,213
|
Current
portion of long-term debt
|
225,000
|
|
225,000
|
Reclamation provision
|
20,478
|
|
7,547
|
Lease
obligations
|
36,104
|
|
32,988
|
Fair value
of derivative financial instruments
|
13,124
|
|
22,089
|
Total current
liabilities
|
985,342
|
|
761,813
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,340,715
|
|
1,340,223
|
Reclamation provision
|
817,987
|
|
722,449
|
Lease
obligations
|
109,626
|
|
98,445
|
Share
based liabilities
|
9,806
|
|
—
|
Deferred
income and mining tax liabilities
|
3,733,356
|
|
1,223,128
|
Other
liabilities
|
71,620
|
|
70,261
|
Total
liabilities
|
7,068,452
|
|
4,216,319
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding — 455,747,306 common shares issued, less 843,664
shares held in trust
|
16,167,944
|
|
5,863,512
|
Stock
options
|
193,205
|
|
191,112
|
Contributed
surplus
|
37,254
|
|
37,254
|
Deficit
|
(217,654)
|
|
(146,383)
|
Other
reserves
|
81,318
|
|
54,276
|
Total equity
|
16,262,067
|
|
5,999,771
|
Total liabilities and
equity
|
$
23,330,519
|
|
$
10,216,090
|
|
|
|
|
Note:
|
(i) Certain
previously reported line items have been restated to reflect the
retrospective application of amendments to IAS 16.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
|
|
|
Restated(i)
|
|
|
|
|
REVENUES
|
|
|
|
Revenues from mining
operations
|
$
1,325,688
|
|
$
949,623
|
|
|
|
|
COSTS, EXPENSES AND
OTHER INCOME
|
|
|
|
Production(ii)
|
661,735
|
|
417,376
|
Exploration and
corporate development
|
65,842
|
|
28,709
|
Amortization of
property, plant and mine development
|
260,748
|
|
177,793
|
General and
administrative
|
67,542
|
|
44,933
|
Finance
costs
|
22,653
|
|
22,168
|
(Gain) loss on
derivative financial instruments
|
(28,664)
|
|
21,066
|
Environmental
remediation
|
(2,299)
|
|
(628)
|
Foreign currency
translation loss (gain)
|
1,210
|
|
(3,078)
|
Care and
maintenance
|
10,456
|
|
—
|
Other expenses
(income)
|
91,898
|
|
(1,881)
|
Income before income
and mining taxes
|
174,567
|
|
243,165
|
Income and mining taxes
expense
|
64,815
|
|
97,926
|
Net income for the
period
|
$
109,752
|
|
$
145,239
|
|
|
|
|
Net income per share -
basic
|
$
0.29
|
|
$
0.60
|
Net income per share -
diluted
|
$
0.28
|
|
$
0.59
|
|
|
|
|
Weighted average number
of common shares outstanding (in thousands):
|
|
|
|
Basic
|
384,708
|
|
242,992
|
Diluted
|
385,588
|
|
244,187
|
|
|
|
|
Notes:
|
|
|
|
(i) Certain
previously reported line items have been restated to reflect the
retrospective application of amendments to IAS 16 and the final
purchase price allocation of TMAC.
|
(ii)
Exclusive of amortization, which is shown separately.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
|
|
|
Restated(i)
|
OPERATING
ACTIVITIES
|
|
|
|
Net income for the
period
|
$
109,752
|
|
$
145,239
|
Add (deduct) adjusting
items:
|
|
|
|
Amortization of property, plant and mine development
|
260,748
|
|
177,793
|
Deferred
income and mining taxes
|
(657)
|
|
55,922
|
Unrealized gain on currency and commodity derivatives
|
(24,055)
|
|
(741)
|
Unrealized (gain) loss on warrants
|
(913)
|
|
31,810
|
Stock-based compensation
|
22,248
|
|
18,036
|
Foreign
currency translation loss (gain)
|
1,210
|
|
(3,078)
|
Other
|
(2,321)
|
|
503
|
Changes in non-cash
working capital balances:
|
|
|
|
Trade
receivables
|
39,068
|
|
(4,504)
|
Income
taxes
|
(39,870)
|
|
(68,483)
|
Inventories
|
178,152
|
|
25,842
|
Other
current assets
|
(39,607)
|
|
(2,270)
|
Accounts
payable and accrued liabilities
|
(7,644)
|
|
(21,685)
|
Interest
payable
|
11,321
|
|
12,258
|
Cash provided by
operating activities
|
507,432
|
|
366,642
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
Additions to property,
plant and mine development
|
(293,151)
|
|
(192,141)
|
Cash and cash
equivalents acquired in Kirkland acquisition
|
838,732
|
|
—
|
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
|
387
|
|
462
|
Net sales (purchases)
of short-term investments
|
3,127
|
|
(1,550)
|
Net proceeds from sale
of equity securities
|
—
|
|
1,473
|
Purchases of equity
securities and other investments
|
(13,443)
|
|
(5,469)
|
Cash provided by (used
in) investing activities
|
535,652
|
|
(538,123)
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
Proceeds from Credit
Facility
|
100,000
|
|
240,000
|
Repayment of Credit
Facility
|
(100,000)
|
|
(240,000)
|
Repayment of lease
obligations
|
(8,310)
|
|
(5,424)
|
Dividends
paid
|
(154,782)
|
|
(72,970)
|
Repurchase of common
shares for stock-based compensation plans
|
(27,889)
|
|
(34,606)
|
Proceeds on exercise of
stock options
|
17,841
|
|
8,401
|
Common shares
issued
|
5,282
|
|
4,465
|
Cash used in financing
activities
|
(167,858)
|
|
(100,134)
|
Effect of exchange
rate changes on cash and cash equivalents
|
983
|
|
(4,446)
|
Net increase
(decrease) in cash and cash equivalents during the
period
|
876,209
|
|
(276,061)
|
Cash and cash
equivalents, beginning of period
|
185,786
|
|
402,527
|
Cash and cash
equivalents, end of period
|
$
1,061,995
|
|
$
126,466
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
Interest
paid
|
$
7,560
|
|
$
7,726
|
Income and mining taxes
paid
|
$
103,400
|
|
$
108,653
|
|
|
|
|
Note:
|
(i) Certain
previously reported line items have been restated to reflect the
retrospective application of amendments to IAS 16 and the final
purchase price allocation of TMAC.
|
AGNICO EAGLE MINES LIMITED
|
|
|
|
|
|
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
|
|
|
|
|
|
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
set out a reconciliation of total cash costs per ounce of gold
produced (on both a by-product basis and co-product basis) and
minesite costs per tonne to production costs, exclusive of
amortization, as presented in the condensed interim consolidated
statements of income in accordance with IFRS.
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production
Costs by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
|
|
|
|
(thousands of United
States dollars)
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
LaRonde mine
|
|
$
45,841
|
|
$
51,342
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
|
|
16,733
|
|
12,685
|
|
|
|
|
|
|
|
LaRonde
Complex
|
|
62,574
|
|
64,027
|
|
|
|
|
|
|
|
Canadian Malartic
mine(i)
|
|
56,937
|
|
55,468
|
|
|
|
|
|
|
|
Goldex mine
|
|
26,217
|
|
22,513
|
|
|
|
|
|
|
|
Detour Lake
mine
|
|
119,965
|
|
—
|
|
|
|
|
|
|
|
Macassa mine
|
|
32,314
|
|
—
|
|
|
|
|
|
|
|
Meliadine
mine
|
|
78,679
|
|
64,740
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
|
96,711
|
|
87,339
|
|
|
|
|
|
|
|
Hope Bay
mine
|
|
—
|
|
24,075
|
|
|
|
|
|
|
|
Fosterville
mine
|
|
88,001
|
|
—
|
|
|
|
|
|
|
|
Kittila mine
|
|
49,451
|
|
48,660
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
|
32,536
|
|
31,998
|
|
|
|
|
|
|
|
Creston Mascota
mine
|
|
615
|
|
2,417
|
|
|
|
|
|
|
|
La India
mine
|
|
17,735
|
|
16,139
|
|
|
|
|
|
|
|
Production costs per
the condensed interim consolidated statements of income
|
|
$
661,735
|
|
$
417,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
87,549
|
|
|
75,389
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
45,841
|
$
524
|
|
$
51,342
|
$
681
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
10,927
|
125
|
|
929
|
12
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(485)
|
(6)
|
|
(2,256)
|
(30)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
2,762
|
31
|
|
4,818
|
64
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
59,045
|
$
674
|
|
$
54,833
|
$
727
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(17,218)
|
(196)
|
|
(17,899)
|
(237)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis
|
|
$
41,827
|
$
478
|
|
$
36,934
|
$
490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
455
|
|
|
487
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
45,841
|
$
101
|
|
$
51,342
|
$
105
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
58,015
|
C$
128
|
|
C$
66,403
|
C$
136
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
12,357
|
27
|
|
505
|
1
|
|
|
|
|
|
|
|
Other
adjustments (C$)(vi)
|
|
(3,506)
|
(8)
|
|
(2,494)
|
(5)
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
66,866
|
C$
147
|
|
C$
64,414
|
C$ 132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
17,488
|
|
|
17,689
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
16,733
|
$
957
|
|
$
12,685
|
$
717
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
465
|
27
|
|
1,369
|
77
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(113)
|
(7)
|
|
(533)
|
(30)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
30
|
2
|
|
28
|
2
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
17,115
|
$
979
|
|
$
13,549
|
$
766
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(91)
|
(6)
|
|
(89)
|
(5)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
17,024
|
$
973
|
|
$
13,460
|
$
761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per
Tonne
|
|
Three Months
Ended March 31,
2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
280
|
|
|
277
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
16,733
|
$
60
|
|
$
12,685
|
$
46
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
21,173
|
C$
76
|
|
C$
16,154
|
C$
58
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
576
|
2
|
|
1,643
|
6
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
21,749
|
C$
78
|
|
C$
17,797
|
C$
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
105,037
|
|
|
93,078
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
62,574
|
$
596
|
|
$
64,027
|
$
688
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
11,392
|
108
|
|
2,298
|
25
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(598)
|
(6)
|
|
(2,789)
|
(30)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
2,792
|
27
|
|
4,846
|
52
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
76,160
|
$
725
|
|
$
68,382
|
$
735
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(17,309)
|
(165)
|
|
(17,988)
|
(194)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
58,851
|
$
560
|
|
$
50,394
|
$
541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
735
|
|
|
764
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs)
|
|
$
62,574
|
$
85
|
|
$
64,027
|
$
84
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
|
|
|
C$
82,557
|
C$ 108
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
12,933
|
18
|
|
2,148
|
3
|
|
|
|
|
|
|
|
Other
adjustments (C$)(vi)
|
|
(3,506)
|
(5)
|
|
(2,494)
|
(3)
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
88,615
|
C$
121
|
|
C$
82,211
|
C$ 108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
mine
Per Ounce of Gold
Produced(i)
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
80,509
|
|
|
89,550
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
56,937
|
$
707
|
|
$
55,468
|
$
619
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
728
|
9
|
|
1,689
|
19
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
—
|
—
|
|
(78)
|
(1)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
7,782
|
97
|
|
205
|
3
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
65,447
|
$
813
|
|
$
57,284
|
$
640
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(1,662)
|
(21)
|
|
(2,030)
|
(23)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
63,785
|
$
792
|
|
$
55,254
|
$
617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
mine
Per
Tonne(i)
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
2,412
|
|
|
2,631
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
56,937
|
$
24
|
|
$
55,468
|
$
21
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
71,629
|
C$
30
|
|
C$
71,210
|
C$
27
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
1,010
|
—
|
|
2,211
|
1
|
|
|
|
|
|
|
|
Other
adjustments (C$)(vi)
|
|
9,647
|
4
|
|
—
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
82,286
|
C$
34
|
|
C$
73,421
|
C$
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
34,445
|
|
|
34,650
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
26,217
|
$
761
|
|
$
22,513
|
$
650
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
710
|
21
|
|
20
|
1
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(215)
|
(6)
|
|
(1,002)
|
(29)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
54
|
1
|
|
45
|
1
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
26,766
|
$
777
|
|
$
21,576
|
$
623
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(16)
|
—
|
|
(6)
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis
|
|
$
26,750
|
$
777
|
|
$
21,570
|
$
623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
743
|
|
|
727
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
26,217
|
$
35
|
|
$
22,513
|
$
31
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
33,220
|
C$
45
|
|
C$
28,558
|
C$
39
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
892
|
1
|
|
(27)
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
34,112
|
C$
46
|
|
C$
28,531
|
C$
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
Mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
100,443
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
119,965
|
$ 1,194
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
(16,621)
|
(166)
|
|
—
|
—
|
|
|
|
|
|
|
|
Purchase price
allocation to inventory(v)
|
|
(46,147)
|
(459)
|
|
—
|
—
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
4,285
|
43
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
61,482
|
$
612
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(1,205)
|
(12)
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
60,277
|
$
600
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
Mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
3,270
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
119,965
|
$
37
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
151,818
|
C$
46
|
|
C$
—
|
C$
—
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
(21,072)
|
(6)
|
|
—
|
—
|
|
|
|
|
|
|
|
Purchase
price allocation to inventory(C$)(v)
|
|
(58,400)
|
(18)
|
|
—
|
—
|
|
|
|
|
|
|
|
Other
adjustments (C$)(vi)
|
|
5,400
|
2
|
|
—
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
77,746
|
C$
24
|
|
C$
—
|
C$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
Mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
24,488
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
32,314
|
$ 1,320
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
(2,100)
|
(86)
|
|
—
|
—
|
|
|
|
|
|
|
|
Purchase
price allocation to inventory(C$)(vi)
|
|
(10,827)
|
(442)
|
|
—
|
—
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
(44)
|
(2)
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
19,343
|
$
790
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(73)
|
(3)
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
19,270
|
$
787
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
Mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
47
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
32,314
|
$
689
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
40,830
|
C$
871
|
|
C$
—
|
C$
—
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
(2,644)
|
(56)
|
|
—
|
—
|
|
|
|
|
|
|
|
Fair value
adjustment on business combination(C$)(vi)
|
|
(13,578)
|
(290)
|
|
—
|
—
|
|
|
|
|
|
|
|
Other
adjustments (C$)(vi)
|
|
(68)
|
(2)
|
|
—
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
24,540
|
C$
523
|
|
C$
—
|
C$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per Ounce of Gold
Produced(vii)
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
80,704
|
|
|
88,003
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
78,679
|
$
975
|
|
$
64,740
|
$
736
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
3,632
|
45
|
|
(1,700)
|
(19)
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(1,311)
|
(16)
|
|
(2,634)
|
(30)
|
|
|
|
|
|
|
|
IAS 16
amendments(iv)
|
|
—
|
—
|
|
(4,976)
|
(57)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
95
|
1
|
|
43
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
81,095
|
$ 1,005
|
|
$
55,473
|
$
630
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(217)
|
(3)
|
|
(220)
|
(2)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
80,878
|
$ 1,002
|
|
$
55,253
|
$
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per
Tonne(viii)
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
432
|
|
|
338
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
78,679
|
$
182
|
|
$
64,740
|
$
192
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
99,437
|
C$
230
|
|
C$
82,771
|
C$
245
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
4,525
|
11
|
|
(2,508)
|
(7)
|
|
|
|
|
|
|
|
IAS 16
amendments (C$)(iv)
|
|
—
|
—
|
|
(6,362)
|
(19)
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
103,962
|
C$
241
|
|
C$
73,901
|
C$
219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
59,765
|
|
|
79,965
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
96,711
|
$ 1,618
|
|
$
87,339
|
$ 1,092
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
15,203
|
254
|
|
5,780
|
72
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(2,043)
|
(34)
|
|
(2,914)
|
(36)
|
|
|
|
|
|
|
|
Operational care & maintenance due to
COVID-19(iii)
|
|
(1,436)
|
(24)
|
|
—
|
—
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
66
|
1
|
|
72
|
1
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
108,501
|
$ 1,815
|
|
$
90,277
|
$ 1,129
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(295)
|
(4)
|
|
(492)
|
(6)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
108,206
|
$ 1,811
|
|
$
89,785
|
$ 1,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
892
|
|
|
924
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
96,711
|
$
108
|
|
$
87,339
|
$
95
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
122,465
|
C$ 137
|
|
C$
112,766
|
C$
122
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
18,808
|
21
|
|
7,102
|
8
|
|
|
|
|
|
|
|
Operational care and maintenance due to COVID-19
(C$)(iii)
|
|
(1,793)
|
(2)
|
|
—
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
139,480
|
C$
156
|
|
C$
119,868
|
C$
130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
—
|
|
|
12,259
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
—
|
$
—
|
|
$
24,075
|
$ 1,964
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
—
|
—
|
|
(12,691)
|
(1,035)
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
—
|
$
—
|
|
$
11,384
|
$
929
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
—
|
—
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
—
|
$
—
|
|
$
11,384
|
$
929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
—
|
|
|
39
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
—
|
$
—
|
|
$
24,075
|
$
616
|
|
|
|
|
|
|
|
Production costs
(C$)
|
|
C$
—
|
C$
—
|
|
C$
30,477
|
C$
780
|
|
|
|
|
|
|
|
Inventory
adjustments (C$)(ii)
|
|
—
|
—
|
|
(16,306)
|
(417)
|
|
|
|
|
|
|
|
Minesite operating
costs (C$)
|
|
C$
—
|
C$
—
|
|
C$
14,171
|
C$ 363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
Mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
81,827
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
88,001
|
$ 1,075
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
(5,839)
|
(71)
|
|
—
|
—
|
|
|
|
|
|
|
|
Purchase
price allocation to inventory(v)
|
|
(56,677)
|
(693)
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
25,485
|
$
311
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(188)
|
(2)
|
|
—
|
—
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
25,297
|
$
309
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
Mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
91
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
88,001
|
$
963
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
Production costs
(A$)
|
|
A$
117,226
|
A$
1,283
|
|
A$
—
|
A$
—
|
|
|
|
|
|
|
|
Inventory
adjustments (A$)(ii)
|
|
(8,205)
|
(90)
|
|
—
|
—
|
|
|
|
|
|
|
|
Purchase
price allocation to inventory(A$)(v)
|
|
(75,500)
|
(826)
|
|
—
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs (A$)
|
|
A$
33,521
|
A$
367
|
|
A$
—
|
A$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
45,508
|
|
|
60,716
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
49,451
|
$ 1,087
|
|
$
48,660
|
$
801
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
(2,791)
|
(62)
|
|
(295)
|
(5)
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
678
|
15
|
|
(6)
|
—
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
54
|
1
|
|
172
|
3
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
47,392
|
$ 1,041
|
|
$
48,531
|
$
799
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(89)
|
(2)
|
|
(54)
|
(1)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
47,303
|
$ 1,039
|
|
$
48,477
|
$
798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
461
|
|
|
494
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
49,451
|
$
107
|
|
$
48,660
|
$
99
|
|
|
|
|
|
|
|
Production costs
(€)
|
|
€
43,908
|
€
95
|
|
€
41,068
|
€
83
|
|
|
|
|
|
|
|
Inventory
adjustments (€)(ii)
|
|
(2,274)
|
(5)
|
|
(337)
|
(1)
|
|
|
|
|
|
|
|
Minesite operating
costs (€)
|
|
€
41,634
|
€
90
|
|
€
40,731
|
€
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
25,170
|
|
|
29,175
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
32,536
|
$ 1,293
|
|
$
31,998
|
$ 1,097
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
799
|
31
|
|
2,160
|
74
|
|
|
|
|
|
|
|
Realized
gains and losses on hedges of production costs
|
|
(234)
|
(9)
|
|
(548)
|
(19)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
303
|
12
|
|
375
|
13
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
33,404
|
$ 1,327
|
|
$
33,985
|
$ 1,165
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(6,263)
|
(249)
|
|
(9,538)
|
(327)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
27,141
|
$ 1,078
|
|
$
24,447
|
$
838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
384
|
|
|
493
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
32,536
|
$
85
|
|
$
31,998
|
$
65
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
799
|
2
|
|
2,160
|
4
|
|
|
|
|
|
|
|
Minesite operating
costs
|
|
$
33,335
|
$
87
|
|
$
34,158
|
$
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
1,006
|
|
|
4,252
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
615
|
$
611
|
|
$ 2,417
|
$
568
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
(87)
|
(87)
|
|
(477)
|
(112)
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
18
|
18
|
|
141
|
34
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
546
|
$
542
|
|
$ 2,081
|
$
490
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(135)
|
(135)
|
|
(1,263)
|
(297)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
411
|
$
407
|
|
$
818
|
$
193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per
Tonne(ix)
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
615
|
$
—
|
|
$ 2,417
|
$
—
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
(87)
|
—
|
|
(477)
|
—
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
(528)
|
—
|
|
(1,940)
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs
|
|
$
—
|
$
—
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Gold production
(ounces)
|
|
|
21,702
|
|
|
17,033
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
17,735
|
$
817
|
|
$
16,139
|
$
948
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
568
|
26
|
|
242
|
14
|
|
|
|
|
|
|
|
Other
adjustments(vi)
|
|
196
|
9
|
|
120
|
7
|
|
|
|
|
|
|
|
Cash operating costs
(co-product basis)
|
|
$
18,499
|
$
852
|
|
$
16,501
|
$
969
|
|
|
|
|
|
|
|
By-product
metal revenues
|
|
(708)
|
(32)
|
|
(562)
|
(33)
|
|
|
|
|
|
|
|
Cash operating costs
(by-product basis)
|
|
$
17,791
|
$
820
|
|
$
15,939
|
$
936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per
Tonne
|
|
Three Months
Ended
March 31, 2022
|
|
Three Months
Ended
March 31, 2021
|
|
|
|
|
|
|
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
1,563
|
|
|
1,642
|
|
|
|
|
|
|
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
|
|
|
|
|
|
Production
costs
|
|
$
17,735
|
$
11
|
|
$
16,139
|
$
10
|
|
|
|
|
|
|
|
Inventory
adjustments(ii)
|
|
568
|
1
|
|
242
|
—
|
|
|
|
|
|
|
|
Minesite operating
costs
|
|
$
18,303
|
$
12
|
|
$
16,381
|
$
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and includes 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) Certain previously
reported line items have been restated to reflect the retrospective
application of IAS 16. This adjustment eliminates the effects of
the retrospective application of IAS 16 amendments on the total
cash costs per ounce of gold produced (by-product and
co-product).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(v) On February 2, 2022
the Company announced the completion of the merger of equals with
Kirkland and this adjustment reflects the fair value allocated to
inventory on the purchase price equation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(vi) Other adjustments
consists of costs associated with a 5% in-kind royalty paid by the
Canadian Malartic mine, a 2% in-kind royalty paid by the Detour
Lake mine, smelting, refining and marketing charges to production
costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(vii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
months ended March 31, 2021 exclude 8,123 ounces of payable gold
production which were produced 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 three months ended March
31, 2021 exclude 77,037 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ix) The Creston
Mascota mine's cost calculations per tonne for the three months
ended March 31, 2022 exclude approximately $0.5 million of
production costs incurred 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 ended March 31, 2021 exclude
approximately $2.4 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(vii) and All-in Sustaining Costs per Ounce of
Gold Produced(vii)
|
|
|
|
|
|
Three Months
Ended
March
31,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2022
|
|
2021
|
Production costs per
the condensed interim consolidated statements of income
|
$
661,735
|
|
$
417,376
|
Gold production
(ounces)(i)
|
660,604
|
|
508,681
|
Production costs per
ounce of adjusted gold production
|
$
1,002
|
|
$
821
|
Adjustments:
|
|
|
|
Inventory
adjustments(ii)
|
10
|
|
(6)
|
Purchase
price allocation to inventory(iii)
|
(172)
|
|
—
|
IAS 16
amendments(iv)
|
—
|
|
(10)
|
Realized
gains and losses on hedges of production costs
|
(6)
|
|
(20)
|
Operational care and maintenance costs due to
COVID-19(v)
|
(2)
|
|
—
|
Other(vii)
|
22
|
|
12
|
Total cash costs per
ounce of gold produced (co-product
basis)(vii)
|
$
854
|
|
$
797
|
By-product
metal revenues
|
(43)
|
|
(63)
|
Total cash costs per
ounce of gold produced (by-product
basis)(vii)
|
$
811
|
|
$
734
|
Adjustments:
|
|
|
|
Sustaining
capital expenditures (including capitalized exploration)
|
151
|
|
175
|
General
and administrative expenses (including stock option
expense)
|
102
|
|
88
|
Non-cash
reclamation provision and sustaining
leases(viii)
|
15
|
|
10
|
All-in sustaining costs
per ounce of gold produced (by-product basis)
|
$
1,079
|
|
$
1,007
|
By-product
metal revenues
|
43
|
|
63
|
All-in sustaining costs
per ounce of gold produced (co-product basis)
|
$
1,122
|
|
$
1,070
|
|
|
|
|
|
|
|
|
Notes:
|
(i) Gold production for
the three months ended March 31, 2021 exclude 8,123 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.
|
(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) On February 2,
2022 the Company announced the completion of the merger of equals
with Kirkland and this adjustment reflects the fair value allocated
to inventory on the purchase price allocation.
|
(iv) Certain previously
reported line items have been restated to reflect the retrospective
application of IAS 16. This adjustment eliminates the effects of
the retrospective application of IAS 16 amendments on the total
cash costs per ounce of gold produced (by-product and co-product)
as well as all-in sustaining costs (by-product and
co-product).
|
(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
includesconsists of costs associated with a 5% in-kind royalty paid
by the addition ofCanadian Malartic mine, a 2% in-kind royalty paid
by the Detour Lake mine, 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.
|
(viii) Sustaining
leases are lease payments related to sustaining assets.
|
Reconciliation of
Operating Margin(i)
to Net Income
|
|
Three Months Ended
March 31, 2022
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
|
|
|
|
|
|
LaRonde
mine
|
$
149,405
|
|
$
(45,841)
|
|
$
103,564
|
LaRonde Zone 5
mine
|
33,389
|
|
(16,733)
|
|
16,656
|
Canadian Malartic
mine(ii)
|
136,239
|
|
(56,937)
|
|
79,302
|
Goldex
mine
|
63,335
|
|
(26,217)
|
|
37,118
|
Detour Lake
mine
|
248,023
|
|
(119,965)
|
|
128,058
|
Macassa
mine
|
56,469
|
|
(32,314)
|
|
24,155
|
Meliadine
mine
|
162,958
|
|
(78,679)
|
|
84,279
|
Meadowbank
Complex
|
91,513
|
|
(96,711)
|
|
(5,198)
|
Hope Bay
mine
|
144
|
|
—
|
|
144
|
Fosterville
mine
|
194,857
|
|
(88,001)
|
|
106,856
|
Kittila
mine
|
95,562
|
|
(49,451)
|
|
46,111
|
Pinos Altos
mine
|
51,967
|
|
(32,536)
|
|
19,431
|
Creston Mascota
mine
|
1,792
|
|
(615)
|
|
1,177
|
La India
mine
|
40,035
|
|
(17,735)
|
|
22,300
|
Segment
totals
|
$
1,325,688
|
|
$
(661,735)
|
|
$
663,953
|
Corporate and
other:
|
|
|
|
|
|
Exploration and
corporate development
|
65,842
|
Amortization of
property, plant, and mine development
|
260,748
|
General and
administrative
|
67,542
|
Finance
costs
|
22,653
|
Loss (gain) on
derivative financial instruments
|
(28,664)
|
Environmental
remediation
|
(2,299)
|
Foreign currency
translation loss
|
1,210
|
Care and
maintenance
|
10,456
|
Other
expenses
|
91,898
|
Income and mining taxes
expense
|
64,815
|
Net income per
consolidated interim condensed statements of income
|
$
109,752
|
|
|
|
|
|
|
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
March 31, 2021
|
|
Revenues
from
|
|
|
|
|
|
Mining
|
|
Production
|
|
Operating
|
|
Operations
|
|
Costs
|
|
Margin
|
|
|
|
|
|
|
LaRonde
mine
|
$
145,070
|
|
$
(51,342)
|
|
$ 93,728
|
LaRonde Zone 5
mine
|
25,283
|
|
(12,685)
|
|
12,598
|
Canadian Malartic
mine(ii)
|
159,216
|
|
(55,468)
|
|
103,748
|
Goldex
mine
|
61,252
|
|
(22,513)
|
|
38,739
|
Meliadine
mine(iii)
|
175,956
|
|
(64,740)
|
|
111,216
|
Meadowbank
Complex
|
137,289
|
|
(87,339)
|
|
49,950
|
Hope Bay
mine
|
35,305
|
|
(24,075)
|
|
11,230
|
Kittila
mine
|
107,363
|
|
(48,660)
|
|
58,703
|
Pinos Altos
mine
|
58,424
|
|
(31,998)
|
|
26,426
|
Creston Mascota
mine
|
10,051
|
|
(2,417)
|
|
7,634
|
La India
mine
|
34,414
|
|
(16,139)
|
|
18,275
|
Segment totals
|
$ 949,623
|
|
$
(417,376)
|
|
$ 532,247
|
Corporate and
other:
|
|
Exploration and
corporate development
|
28,709
|
Amortization of
property, plant, and mine development
|
177,793
|
General and
administrative
|
44,933
|
Finance
costs
|
22,168
|
Gain on derivative
financial instruments
|
21,066
|
Environmental
remediation
|
(628)
|
Foreign currency
translation gain
|
(3,078)
|
Other
income
|
(1,881)
|
Income and mining taxes
expense
|
97,926
|
Net income per
consolidated interim condensed statements of income
|
$ 145,239
|
|
|
|
|
|
|
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) Certain
previously reported line items have been restated to reflect the
retrospective application of IAS 16.
|
Reconciliation of
Sustaining Capital Expenditures(i) and Development Capital
Expenditures(i) to the Consolidated Statements of Cash
Flows
|
|
Three Months
Ended
March
31,
|
|
2022
|
|
2021
|
Sustaining capital
expenditures(i)(ii)
|
$
101,726
|
|
$
100,886
|
Development capital
expenditures(i)
|
148,359
|
|
72,413
|
Total Capital
Expenditures
|
$
250,085
|
|
$
173,299
|
Working capital
adjustments
|
43,066
|
|
18,842
|
Additions to
property, plant and mine development per the consolidated
statements of cash flows
|
$
293,151
|
|
$
192,141
|
|
|
|
|
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.
|
(ii) Certain previously
reported line items have been restated to reflect the retrospective
application of IAS 16.
|
Reconciliation of
Long-Term Debt to Net Debt
|
|
|
As at
|
|
|
As at
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
Current portion of
long-term debt per the interim consolidated balance
sheets
|
$
|
225,000
|
|
$
|
225,000
|
Non-current portion of
long-term debt
|
|
1,340,715
|
|
|
1,340,223
|
Long-term
debt
|
$
|
1,565,715
|
|
$
|
1,565,223
|
Adjustments
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
(1,061,995)
|
|
$
|
(185,786)
|
Net Debt
|
$
|
503,720
|
|
$
|
1,379,437
|
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content:https://www.prnewswire.com/news-releases/agnico-eagle-reports-first-quarter-2022-results--strong-operational-performance-integration-ahead-of-schedule-and-corporate-merger-synergies-better-than-expected-good-progress-at-key-exploration-and-development-projects-301535875.html
SOURCE Agnico Eagle Mines Limited