Agnico Eagle Reports Fourth Quarter and Full Year 2014 Results – Strong Operational Performance Yields Record Annual Production; Initial Resource Declared at Amaruq
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations (416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2014 RESULTS – STRONG OPERATIONAL PERFORMANCE YIELDS RECORD ANNUAL PRODUCTION; INITIAL RESOURCE DECLARED AT AMARUQ
Toronto (February 11, 2015) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported a quarterly net loss of $21.3 million, or a net loss of $0.10 per share for the fourth quarter of 2014. This result includes a noncash foreign currency translation loss on deferred tax liabilities of $20.3 million ($0.10 per share), various mark-to-market adjustment losses of $5.0 million ($0.02 per share), unrealized losses on financial instruments of $7.7 million ($0.04 per share), non-cash foreign currency translation losses of $7.0 million ($0.03 per share), non-cash stock option expense of $3.5 million ($0.02 per share) and non-recurring gains of $5.6 million ($0.03). Excluding these items would result in adjusted net income of $16.6 million ($0.08 per share) for the fourth quarter of 2014. In the fourth quarter of 2013, the Company reported a net loss of $780.3 million or a net loss of $4.49 per share, which included a $1.0 billion impairment loss.
Fourth quarter 2014 cash provided by operating activities was $164.0 million ($152.2 million before changes in non-cash components of working capital), this compares to cash provided by operating activities of $140.8 million in the fourth quarter of 2013 ($135.8 million before changes in non-cash components of working capital). The slight increase in cash flow before changes in working capital during the current period was largely due to higher production which more than offset lower realized gold and silver prices (down 10% and 23% respectively, period over period).
"Our operations continue to perform well, which allowed us to exceed both our production and cost guidance for the third year in a row. With projected year-over-year production growth of 12%, lower fuel costs and weaker local currencies anticipated in Canada, Mexico and Finland, we expect to have another strong year in 2015", said Sean Boyd, President and Chief Executive Officer. “It should also be an exciting year on the exploration front, with drilling activities underway at most of our mines, and significant programs planned at our Amaruq project in Nunavut and El Barqueno project in Mexico. Given the strong potential to expand the initial 1.5 million ounce resource at Amaruq, and the recent positive permitting news at Meliadine, we expect to unlock additional value from our Nunavut platform in 2015", added Mr. Boyd.
Fourth quarter, full year 2014 and recent highlights include:
- Record annual gold production – Payable gold production1 in 2014 was 1,429,288 ounces at total cash costs2 per ounce on a by-product basis of $637, compared to guidance of 1,400,000 ounces at total cash costs per ounce on a byproduct basis of $663. All-in sustaining costs3 (“AISC”) for 2014 was $954 per ounce on a by-product basis, which is below the previous 2014 guidance of $990 per ounce on a by-product basis.
- Record fourth quarter production – Payable production in Q4 2014 was 387,538 ounces of gold at total cash costs per ounce on a by-product basis of $662
- 2015 guidance maintained – Production for 2015 is expected to be approximately 1.6 million ounces of gold with total cash costs on a by-product basis of $610 to $630 per ounce. AISC are forecast to be approximately $880 to $900 per ounce
- Year-over-year increase in reserves and resources – With the acquisition of Osisko Mining Corporation, reserves at year end 2014 were 20.0 million ounces compared to 16.9 million ounces at year end 2013. Measured and indicated
1Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
2Total cash costs per ounce is a Non-GAAP measure. For a reconciliation to production costs, see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine” below. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See “Note Regarding Certain Measures of Performance”. For information about the Company’s total cash costs per ounce on a co-product basis please see “Reconciliation of Non-GAAP Performance Measures”
3All-in-sustaining costs is a Non-GAAP measure and is used to show the full cost of gold production from current operations. For a reconciliation to production costs, see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to All-In Sustaining costs” below. The Company calculates all-in sustaining costs per ounce of gold produced as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses divided by the amount of gold produced. The Company's methodology for calculating all-in sustaining costs may not be similar to the methodology used by other producers that disclose all-in sustaining costs. See "Note Regarding Certain Measures of Performance". The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.
resources and inferred resources also increased by approximately 56% and 33%, respectively, over the 2013 period
- Continued focus on reserve quality and improved grades - Increased gold reserve grades at LaRonde (5.20 g/t versus 5.00 g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos (3.01 g/t versus 2.84 g/t)
- Increased reserves, resources and positive permitting progress in Nunavut - Initial inferred resource of 1.5 million ounces (6.6 million tonnes grading 7.07 g/t gold) reported at Amaruq project. Meliadine reserves increased by approximately 500,000 ounces to 3.3 million ounces (at a grade of 7.44 g/t gold), and the Project Certificate setting out the terms on which the project can proceed is expected within the next two months
- Proceeds from sale of Probe Mines shares used to reduce debt – In Q1 2015, $30 million was repaid on the credit line.
- A quarterly dividend of $0.08 per share declared
New Three Year Guidance Plan - Stable Production and Cost Profile
Highlights from the new production and cost guidance for 2015 to 2017 include:
- In 2015, payable gold production is expected to be approximately 1,600,000 ounces (a 12% increase from 2014 levels), while total cash costs per ounce on a by-product basis are expected to be $610 to $630. Previous guidance for 2015 (from the February 2014 forecast) was 1,250,000 ounces at a total cash cost on a by-product basis of less than $678 per ounce
- Consolidated AISC for 2015 are expected to be approximately $880 to $900 per ounce. In 2016 and 2017, the goal is to further reduce the AISC below the forecast for 2015
- The estimated production level in 2017 is currently forecast to be approximately 1.5 million ounces. However, studies are underway at the following projects and may further enhance the Company’s production profile:
− Expansion of the Vault Deposit at Meadowbank − Development of the Deep Zone at Goldex − Production from Akasaba West at Goldex − Rimpi Zone Development at Kittila − Development of the Kuotko satellite deposit at Kittila
- The Amaruq and Meliadine projects in Nunavut have the potential to add to the Company’s production profile in 2019 and beyond
Fourth Quarter and Full Year 2014 Financial and Production Highlights
For the full year 2014, the Company recorded net income of $83.0 million, or $0.43 per share. In 2013, Agnico Eagle recorded a net loss of $686.7 million, or a net loss of $3.97 per share (a $1.0 billion impairment loss on mining assets and goodwill was recorded in 2013 as a result of the sharp decline in the market price of gold). Compared with the prior year, 2014 earnings were positively affected by higher gold production, favourable foreign exchange rate movements, the acquisition of the Canadian Malartic mine, the ramp up of the Goldex Mine and the start-up of the new La India mine.
For 2014, cash provided by operating activities was $668.3 million ($628.6 million before changes in non-cash components of working capital). This represents an increase over 2013, when cash provided by operating activities totaled $481.0 million ($559.3 million before changes in non-cash components of working capital). The increase was primarily due to significantly higher gold production in 2014 resulting from the acquisition of the Canadian Malartic mine.
In the fourth quarter of 2014, strong operational performance continued at the Company's mines, which led to record quarterly and annual gold production.
Payable gold production in the fourth quarter of 2014 was a record 387,538 ounces compared to 322,443 ounces in the fourth quarter of 2013. A detailed description of the production and cost performance of each mine is set out below.
Total cash costs per ounce on a by-product basis for the fourth quarter of 2014 were $662 versus $591 per ounce for the fourth quarter 2013. The increase in total cash costs per ounce on a by-product basis in the fourth quarter of 2014 is mainly due to lower production levels at the Meadowbank mine (record quarterly gold production was realized in the fourth quarter of 2013), the inclusion of Canadian Malartic production (at slightly higher costs), lower mill recoveries at Kittila and lower by-product metals production and revenue.
For the fourth straight year, Agnico Eagle has reported record annual gold production. The Company's payable gold production for the full year 2014 was 1,429,288 ounces at total cash costs per ounce on a by-product basis of $637. This compares to the full year 2013 level of 1,099,335 ounces at total cash costs per ounce on a by-product basis of $648. The improvement in gold production in 2014 was a result of strong operating results from all of the mines, particularly LaRonde and Meadowbank, the ramp up of the Goldex and La India mines and the acquisition of the Canadian Malartic mine. The decrease in total cash costs per ounce on a by-product basis in 2014 was primarily due to strong cost control initiatives at all of the mines, the positive impact of foreign exchange and higher gold production for 2014.
AISC for 2014 was $954 per ounce on a by-product basis, which is below the previous 2014 guidance of $990 per ounce on a by-product basis. The lower AISC is primarily due to lower than forecast total cash costs per ounce on a by-product basis in 2014.
Quarterly Dividend Declared
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.08 per common share, payable on March 16, 2015 to shareholders of record as of March 2, 2015. Agnico Eagle has now declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the Remainder of 2015
| Record Date | Payment Date |
| March 2* | March 16* |
| June 1 | June 15 |
| September 1 | September 15 |
| December 1 | December 15 |
*Declared
Dividend Reinvestment Plan
Please follow the link below for information on the Company's dividend reinvestment program. Dividend Reinvestment Plan
Conversion to International Financial Reporting Standards
The Company adopted International Financial Reporting Standards ("IFRS") as of July 1, 2014 to enhance the comparability of its financial statements to the Company’s peers within the mining industry. Prior to this conversion financial reporting was under US GAAP. Financial results herein, including those for prior periods, have been calculated in accordance with IFRS.
Additional disclosure regarding the IFRS conversion will be included in the Company's Management's Discussion and Analysis expected to be filed in late March 2015 in respect of the year ended December 31, 2014.
Conference Call Tomorrow
The Company's senior management will host a conference call on Thursday, February 12, 2015 at 11:00 AM (E.S.T.) to discuss financial and operating results.
Via Webcast:
A live audio webcast of the meeting will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 416-260-0113 or Toll-free 1-800- 524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay Archive:
Please dial 1-647-436-0148 or Toll-free 1-888-203-1112, access code 8252919. The conference call replay will expire on March 15, 2015 at 2:00 PM (E.S.T.). The webcast along with presentation slides will be archived for 180 days on www.agnicoeagle.com.
Liquidity - Existing Cash and Credit Facilities Provide Flexibility; Operations Expected to Generate Net Free Cash Flow
Cash and cash equivalents and short term investments increased to $182.2 million at December 31, 2014, from the September 30, 2014 balance of $165.6 million.
Capital expenditures in the fourth quarter of 2014 were $133.4 million including $26.0 million at Kittila, $23.4 million at LaRonde, $17.7 million at Pinos Altos, $17.4 million at Canadian Malartic, $16.2 million at Meliadine, $12.2 million at Meadowbank, $10.6 million at Goldex, $4.2 million at Lapa, $2.9 million at Creston Mascota, $2.6 million at La India, and $0.2 million on other Canadian projects. For the full year 2014, capital expenditures totaled $475.4 million, which was below expected levels of $499 million announced in the third quarter news release on October 29, 2014. This decrease in capital spending is a reflection of capital and cost reduction initiatives that have been ongoing through the second half of 2014.
As of December 31, 2014, the Company had drawn down $500 million on its credit lines. This results in available lines of approximately $700 million.
On January 21, 2015, Agnico Eagle entered into an agreement to sell a portion of its equity holdings in Probe Mines Limited to Goldcorp Inc. Proceeds from this sale were used to make a $30 million repayment on the credit lines on February 9, 2015.
Three Year Guidance Plan Outlines a Stable Production and Cost Profile
The Company is announcing its production and cost guidance for the three-year period of 2015 through 2017. Anticipated production in 2015 is expected to increase by approximately 12% from 2014 levels.
In 2015, payable gold production is expected to be approximately 1,600,000 ounces. Total cash costs per ounce on a by-product basis in 2015 are expected to be in the range of $610 to $630. Cash costs are expected to be lower in the second half of 2015 as a result of slightly higher production. Previous guidance for 2015 (from the February 2014 forecast), which did not include the Canadian Malartic mine, was 1,250,000 ounces at a total cash cost on a by-product basis of approximately $678 per ounce.
2015 Commodity and currency price Approximate impact on total cash costs per assumptions ounce
| Silver ($/oz) | 18 $1 / oz change in silver price | $2 |
| Copper ($/mt) | 6,614 10% change in copper price | n.a. |
| Zinc ($/mt) | 2,000 10% change in zinc price | n.a. |
Diesel (C$/ltr) 0.95 10% change in diesel price $5
| US$/C$ | 1.20 1.0% change in US$/C$ | $5 |
| EURO$/US$ | 1.18 1.0% change in Euro$/US$ | $1 |
| US$/MXP | 12.75 1,000 bps peso change in US$/MXP | $1 |
LaRonde, Kittila, La India and Canadian Malartic are Key Production Growth Drivers Over the Next Three Years
At LaRonde, commissioning of the cooling plant in 2014 had a positive impact on operating flexibility and production at the mine. With ongoing maturity of the mining fronts in the deeper portions of the mine, and a gradual increase in the grade towards the reserve grade of 5.2 g/t gold, production levels are expected to steadily increase through 2017 and beyond.
With the completion of the mill expansion in 2014, production at Kittila is expected to increase significantly. A priority focus at Kittila will be on developing the Rimpi zone through a ramp system to provide additional feed to the mill and enhance Kittila's production profile. Agnico Eagle is also evaluating the nearby Kuotko deposit (approximately 15 kilometers to the north) as potential open pit satellite feed for the Kittila mill.
In 2014, La India completed its ramp-up to full design capacity and is expected to maintain production at an annual rate of approximately 90,000 ounces over the next three years. Initial studies are underway to evaluate the potential to expand future production at La India
By the second half of 2015, mill throughput at Canadian Malartic is expected to reach its design capacity of 55,000 tpd (partly contingent upon updating the existing operating permits), which should result in higher production levels. Efforts are also underway to optimize the life-of-mine plan and further improve productivity and reduce costs.
Estimated Payable Gold 2015 2016 2017 Production 2014 Actual Forecast Forecast Forecast
Northern Business
| LaRonde | 204,652 | 245,000 300,000 330,000 |
| Canadian Malartic (50%) | 143,008 | 280,000 290,000 290,000 |
| Lapa | 92,622 | 75,000 50,000 0 |
| Goldex | 100,433 100,000 100,000 | 90,000 |
| Kittila | 141,742 | 185,000 185,000 190,000 |
| Meadowbank | 452,877 | 400,000 365,000 290,000 |
1,135,334 1,285,000 1,290,000 1,190,000 Southern Business
| Pinos Altos | 171,019 | 175,000 175,000 175,000 | ||
| Creston Mascota | 47,842 | 50,000 | 45,000 | 40,000 |
| La India | 75,093 | 90,000 | 90,000 | 95,000 |
293,954 315,000 310,000 310,000
Total Gold Production 1,429,288 1,600,000 1,600,000 1,500,000
2014 Actual 2015 Forecast Total Cash Costs Per Ounce
Northern Business
| LaRonde | $668 | $576 |
| Canadian Malartic | 701 | 609 |
| Lapa | 667 | 769 |
| Goldex | 638 | 618 |
| Kittila | 845 | 711 |
| Meadowbank | 599 | 656 |
664 642 Southern Business
| Pinos Altos | 533 | 526 |
| Creston Mascota | 578 | 559 |
| La India | 487 | 491 |
529 521
Total $637 $618
At current foreign exchange rates, total cash costs per ounce on a by-product basis for 2016 and 2017 are expected to be similar to the 2015 forecast.
Consolidated all-in sustaining costs for 2015 are expected to be approximately $880 to $900 per ounce. In 2016 and 2017, the goal is to further reduce the all-in sustaining cost below the level forecast for 2015.
Improved Three Year Gold Production Forecast
Since the prior three-year production guidance of February 12, 2014 ("Previous Guidance"), there have been a number of key operating developments, resulting in changes to the overall three-year production profile. Descriptions of the major factors that contributed to these changes are detailed below.
Northern Business
| LaRonde Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 215,000 | 245,000 | 285,000 | n.a. |
| Current Guidance (oz) | 204,652 (actual) | 245,000 | 300,000 | 330,000 |
| LaRonde 2015 Forecast | Ore Milled ('000 tonnes) | Gold (g/t), Mill Recovery | Silver (g/t), Mill Recovery | Zinc (%), Mill Recovery | Copper (%), Mill Recovery | Minesite Cost Per Tonne4 |
|---|---|---|---|---|---|---|
| 2,245 | 3.65, 93.9% | 25.2, 76.9% | 0.51, 66.8% | 0.3, 79.7% | C$102 |
At LaRonde, the new cooling and ventilation infrastructure that was commissioned in early 2014 has helped to enhance the productivity in the deeper portions of the mine. Three mining horizons are now operational below level 215, which provides access to higher grade reserves. A new coarse ore conveyor system that is scheduled to be commissioned in late 2015 should further enhance the flexibility in these areas. The increased production forecasts through 2017 largely reflect an increase in grade closer to that of the average reserves.
| Canadian Malartic Forecast (50% basis) | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 135,000 | n.a. | n.a. | n.a. |
| Current Guidance (oz) | 143,008 (actual) | 280,000 | 290,000 | 290,000 |
Canadian Malartic Ore Milled Gold Mill Minesite Cost Strip ratio
2015 Forecast
('000 tonnes) (g/t) Recovery Per Tonne
4 Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see “Reconciliation of Non-GAAP Financial Performance Measures
- Reconciliation of Production Costs to Minesite Costs per Tonne by Mine” below. See also “Note
Regarding Certain Measures of Performance”.
9,700 1.01 89% C$20* 2.1:1.0 *does not include the 5% NSR
At Canadian Malartic (in which Agnico Eagle has 50% ownership), the current crushing circuit has a nameplate capacity of 55,000 tpd. Throughput levels are forecast to be approximately 52,500 tpd in the first half of 2015, increasing to approximately 55,000 tpd in the second half of 2015. Production at Canadian Malartic is forecast to be approximately 280,000 ounces of gold in 2015 to Agnico Eagle’s account. The potential second half increase in throughput in 2015 is partly contingent upon updating the existing operating permits. Forecasts for 2016 and 2017 assume a daily throughput rate of approximately 55,000 tpd.
| Lapa Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 80,000 | 75,000 | 45,000 | n.a. |
| Current Guidance (oz) | 92,622 (actual) | 75,000 | 50,000 | n.a. |
| Lapa 2015 Forecast | Ore Milled ('000 tonnes) | Gold (g/t) | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 584 | 5.17 | 77.5% | C$118 |
At Lapa, 2015 and 2016 are the last two years of full production based on the current life of mine plan. Production in these two years is expected to progressively decline due to lower tonnage and stope availability. The current plan considers that the Lapa mine will only operate for a portion of 2016. Additional exploration results from the Zulapa Z7 and Z8 zones could potentially extend the mine life beyond 2016.
| Goldex Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 80,000 | 100,000 | 90,000 | n.a |
| Current Guidance (oz) | 100,433 (actual) | 100,000 | 100,000 | 90,000 |
| Goldex 2015 Forecast | Ore Milled ('000 tonnes) | Gold (g/t) | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 2,190 | 1.55 | 92.5% | C$34 |
The Goldex mine successfully started operations at the M and E zones in the fourth quarter of 2013. Production in 2014 was ahead of guidance due to a faster than expected ramp up in mining rates. Existing reserves and exploitation of the M3 and M4 zones are expected to keep production levels and costs relatively constant through 2017. Exploration and development has been accelerated on the Deep Zone with the goal of outlining a mineable reserve and completion of a technical study by late 2015 or early 2016. Development of the Deep Zone and the nearby Akasaba West deposit have the potential to extend the mine's life and/or production rate well beyond 2017.
| Kittila Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 150,000 | 160,000 | 170,000 | n.a. |
| Current Guidance (oz) | 141,742 (actual) | 185,000 | 185,000 | 190,000 |
| Kittila 2015 Forecast | Ore Milled ('000 tonnes) | Gold (g/t), | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 1,487 | 4.5 | 86.0% | €72 |
Expansion of the Kittila mill was essentially completed at the end of the third quarter of 2014, approximately six months ahead of schedule. The expansion provided upgrades to both the grinding and flotation circuits and the oxidation and cyanidation circuits. During the fourth quarter of 2014, activities focused on ramping up throughput to the 4,000 tpd nameplate capacity (early indications have shown that the plant can potentially exceed this capacity). Production in 2014 fell short of expected guidance due to the advancement of a 2015 planned mill shutdown (related to the expansion) in September 2014, the inability to access the remaining high-grade stopes in high-grade Suuri crown pillar, and fluctuations in mill productivity during the mill ramp up in the fourth quarter.
In order to utilize this increased capacity, the Company is looking at a combination of increased mine throughput and the processing of surface stockpiles. As part of the program to increase mine throughput, a priority focus will be on developing the Rimpi zone through a ramp system to provide sufficient future feed to the mill and enhance Kittila's production profile.
| Meadowbank Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 430,000 | 375,000 | 385,000 | n.a. |
| Current Guidance (oz) | 452,877 (actual) | 400,000 | 365,000 | 290,000 |
| Meadowbank 2015 Forecast | Ore Milled ('000 tonnes) | Gold (g/t), | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 4,120 | 3.27 | 92.5% | C$77 |
At Meadowbank, 2014 production exceeded guidance largely due to the mining of higher than expected grades in the Goose pit in the first half of the year. Production levels are expected to gradually decline from 2015 to 2017 due to a decline in grade as the current reserve base is depleted. In 2015, approximately 45% of the production is expected to occur in the first half of the year. Expected production increases in the second half of 2015 would be due to higher grades being mined from the Portage E3 pit.
The Company is evaluating a potential expansion of the Vault pit, which could result in approximately 150,000 to 200,000 ounces being added to the mine plan starting in 2017. A positive decision on the Vault expansion could affect the distribution of ounces produced in 2016 to 2018. A decision on this expansion is expected to be made by the second half of 2015. In addition, a major drill program is planned at Amaruq in 2015 to expand the initial 1.5 million ounce inferred resource base (see the discussion on reserves and resources below) with the goal of potentially developing the deposit as a satellite operation to Meadowbank.
Southern Business
| Pinos Altos Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 145,000 | 165,000 | 170,000 | n.a. |
| Current Guidance (oz) | 171,019 (actual) | 175,000 | 175,000 | 175,000 |
| Pinos Altos 2015 Forecast | Total Ore ('000 tonnes) | Gold (g/t) Recovery | Silver (g/t) Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 2,336 | 2.48, 94.0% | 64.9, 40.9% | $54 |
At Pinos Altos, mill throughput has steadily increased from the original design rate of 4,000 tpd to the current average of approximately 5,500 tpd. A series of improvements have contributed to increased production and cost reduction in the mining and processing areas. As a result of these improvements, the current production guidance for 2015 to 2017 is slightly higher than previously estimated. Year-over-year variances in guidance for 2015 and 2016 are attributable to mine sequence and ore grade.
| Creston Mascota Forecast | 2014 | 2015 | 2016 | 2017 |
| Previous Guidance (oz) | 40,000 | 40,000 | 40,000 | n.a. |
| Current Guidance (oz) | 47,842 (actual) | 50,000 | 45,000 | 40,000 |
| Creston Mascota 2015 Forecast | Total Ore ('000 tonnes) | Gold (g/t) Recovery | Silver (g/t) Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 2,047 | 1.3, 57.25% | 16.0, 7.5% | $14 |
The completion of the Phase III heap leach pad and agglomeration projects, combined with the future expansion of the Phase IV heap leach pad, have resulted in slightly higher expected annual production for 2015 through 2017 at Creston Mascota. In 2015, further drilling is planned on the Bravo deposit to evaluate it as a potential source of additional production.
La India Forecast
2014 2015 2016 2017