Agnico-Eagle Reports Fourth Qu Arter and Full Yea R 2009 Results; Record Quarterly and Annual Re Venue and Gold Production; Record Gold Reserves and Resources
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 2009 RESULTS; RECORD QUARTERLY AND ANNUAL REVENUE AND GOLD PRODUCTION; RECORD GOLD RESERVES AND RESOURCES
Toronto (February 17, 2010) – Agnico-Eagle Mines Limited ("Agnico-Eagle" or the “Company”) today reported quarterly net income of $47.9 million, or $0.31 per share for the fourth quarter of 2009. This result includes a non-cash foreign currency translation loss of $7.8 million, or $0.05 per share, stock option expense of $6.3 million, or $0.04 per share, and a gain on sale of investments of $3.7 million, or $0.02 per share. In the fourth quarter of 2008, the Company reported net income of $21.9 million, or $0.15 per share.
Fourth quarter 2009 cash provided by operating activities was $53.7 million up from cash used by operating activities of $46.4 million in the fourth quarter of 2008, primarily due to 83% higher gold production and significantly higher metal prices.
“Earnings and cash flow increased significantly this quarter on the back of record quarterly gold production as five mines are now contributing to the Company’s gold production base”, said Sean Boyd, Vice-Chairman and Chief Executive Officer. “In addition, with the start of our new Meadowbank mine this quarter, and our record gold reserve base, we are well positioned to continue to increase our gold production and grow earnings and cash flow per share”, added Mr. Boyd.
Fourth quarter 2009 highlights include:
- Strong earnings and cash flows – five operating mines, sixth mine commissioning
- Record Gold Production – record quarterly production of 163,276 ounces contributed to record annual gold production of 492,972 ounces
- Good Cost Control – minesite costs per tonne targets achieved at the steady state mines, LaRonde and Goldex. New mines showing steady improvement
- Record gold reserves – gold reserves rise 0.3 million ounces net of production, to a record 18.4 million ounces1
- Record gold resources – gold resources2 rise to a record level with an increase of 28% over 2008, even after conversion of 0.8 million ounces to reserves in 2009
For the full year 2009, the Company recorded net income of $86.5 million, or $0.55 per share. In 2008, Agnico-Eagle recorded net income of $73.2 million, or $0.51 per share.
1 Reserves are exclusive of resources. See attached table “Detailed Mineral Reserve and Resource Data (as at December 31, 2009)” for detailed breakdown of reserves and resources 2 We use certain terms in this press release, such as “measured mineral resource”, “indicated mineral resource”, and “inferred mineral resource”, and “resources” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.
Compared with the prior year, 2009 earnings were positively affected by higher gold production, higher realized prices for gold and silver and partly offset by lower realized prices and production of zinc and copper.
For 2009, the Company recorded cash provided by operating activities of $115.1 million. This is slightly down from 2008 when cash provided by operating activities totaled $118.1 million. The decrease was due to large increases in working capital realized as a result of the startup of three new mines during 2009 and the build up of inventory in advance of the opening of Meadowbank in early 2010. Before considering the changes in working capital, the cash generation in 2009 was nearly double the amount of 2008.
Payable gold production3 in the fourth quarter of 2009 was a record 163,276 ounces at total cash costs per ounce4 of $297. This compares with payable gold production of 89,360 ounces at total cash costs per ounce of $463 in the fourth quarter of 2008. The decrease in total cash costs per ounce in the fourth quarter of 2009 is mainly due to higher gold production and significantly higher realized prices for zinc and copper.
Payable gold production for the full year 2009 was a record 492,972 ounces at total cash costs per ounce of $347. These costs continue to place Agnico-Eagle’s gold production in the lowest quartile of cash costs in the industry. This production compares to the full year 2008 level of 276,762 ounces at total cash costs per ounce of $162. The 78% higher gold production in 2009 was a result of startups at Lapa, Kittila and Pinos Altos mines, as well as a full year of production from the Goldex mine. The higher costs were largely due to lower realized prices and production of zinc and copper during 2009, as well as elevated costs during the start-up phase of the new mines. Also, due to an ongoing reduction in the percentage of revenue from byproducts (a result of opening new gold mines with little, or no, byproducts), it is expected that the Company’s total cash cost per ounce will average approximately $390 per ounce over the next five years, as disclosed in the detailed guidance of December 16, 2009.
Conference Call Tomorrow
The Company’s senior management will host a conference call on Thursday, February 18, 2010 at 11:00 AM (E.S.T.) to discuss financial results and provide an update of the Company’s exploration and development activities.
Via Webcast:
A live audio webcast of the meeting will be available on the Company’s website homepage at www.agnico-eagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 416-644-3416 or Toll-free 800-814- 4860. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
3 Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company, whether such products are sold during the period or held as inventory at the end of the period. 4 Total cash costs per ounce is a non-GAAP measure. For reconciliation of this measure to production costs, as reported in the financial statements, see Note 1 to the financial statements at the end of this press release.
Replay archive:
Please dial the 416-640-1917 or Toll-free access number 877-289-8525, passcode 4203211#.
The conference call will be archived from Thursday, February 18, 2010 at 1:30 PM (E.S.T.) to Thursday, February 25, 2010 11:59 PM (E.S.T.).
The webcast along with presentation slides will be archived for 180 days on the Company’s website.
Cash Position Remains Strong, Despite Large Investments in Gold Growth
Cash and cash equivalents decreased to $163.6 million at December 31, 2009 from the September 30, 2009 balance of $239.0 million. As expected, all of the Company’s operating cash flow and a portion of its existing cash balances were reinvested in its gold growth projects. Capital expenditures in the fourth quarter were $174.0 million, including $93.9 million at Meadowbank, $21.2 million at LaRonde, $19.8 million at Pinos Altos, $17.5 million at Kittila, $10.2 million at Lapa, and $10.1 million on Goldex. For the full year 2009, capital expenditures totaled $657.2 million.
In 2010, capital expenditures are expected to total approximately $478 million. With its cash balances, anticipated cash flows and $165 million of available bank lines, Agnico- Eagle is fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland and Mexico.
Gold Reserves Rise to Record Level
At year-end 2009, the Company’s proven and probable gold reserves totaled 18.4 million ounces, an increase of 2% over 2008 levels. The largest increase came from the Kittila mine where approximately 0.8 million ounces of reserves were added in 2009.
In 2010, it is expected that Agnico-Eagle’s overall reserves figure will continue to grow as the Company continues to convert its resource to reserves and continues the exploration of its properties outside of current resource envelopes. Agnico-Eagle’s goal is to increase gold reserves from its existing portfolio of mines and projects, to between 20 million and 21 million ounces by year-end 2010. In 2010, the Company expects to invest approximately $76 million in exploration.
The Company anticipates that the main contributors to the targeted increase in gold reserves, and further increases to gold resources, are likely to be:
- Continued conversion of Agnico-Eagle’s current gold resources to reserves
- Depth extension of the main Suuri and Roura zones at Kittila
- New gold zones to the north of the current Kittila reserves
- Extension at depth and along strike at Goose Island and Goose South at Meadowbank
- Extensions at depth at Santo Nino, and the Sinter, Cubiro and San Eligio zones at Pinos Altos
A summary of the Company’s year-end 2009 and 2008 gold reserves, net of production, follows:
| Gold Reserve Summary | Proven & Probable Reserve (000s ounces) | |
|---|---|---|
| 2009 | 2008 | |
| LaRonde Goldex Lapa Kittila Pinos Altos Meadowbank | 4,849 1,630 843 4,025 3,396 3,655 | 4,974 1,571 1,061 3,224 3,593 3,638 |
| Total | 18,398 | 18,061 |
Agnico-Eagle’s proven and probable byproduct reserves total approximately 130 million ounces of silver, 502,000 tonnes of zinc and 97,000 tonnes of copper.
See the section titled “Detailed Mineral Reserve and Resource Data” below for the full details of the Company’s reserve and resource position.
Tonnage amounts and contained metal amounts presented in the table and in this press release have been rounded to the nearest thousand.
Gold Resources Rise to Record Level
Exploration drilling during 2009 resulted in 0.8 million ounces of gold being converted from the resource category into the reserve category. In spite of this conversion, the resources continued to grow at several of the mines and projects.
Gold resources rose approximately 28% in 2009 versus 2008. The largest contributor was Meadowbank where the resource grew by approximately 100%, largely from the southern end of the deposit. Approximately 89% growth in resources was realized at Pinos Altos and resources at LaRonde grew by 35% as well.
The metals prices and exchange rates used in the reserve and resource calculation are the trailing three year averages for such prices or rates in each case, as mandated by the U.S. Securities and Exchange Commission. The assumptions used in calculating the 2009 reserves and resources were $848 per ounce gold, $14.35 per ounce silver, $1.03 per pound zinc, $2.91 per pound copper, $0.97 per pound lead, a C$/US$ exchange rate of 1.09, a US$/Euro exchange rate of 1.41, and a Mexican Peso/US$ exchange rate of 11.85. For every 10% change in the gold price (leaving all other assumptions unchanged), there would be an estimated 4% change in proven and probable reserves.
The byproduct reserves and resources for silver, zinc, copper and lead contained in the LaRonde ore body, and the silver reserves contained at Pinos Altos, are presented in the “Detailed Mineral Reserve and Resource Data” section set out below, and are not included in Agnico-Eagle’s gold reserve and resource totals.
LaRonde Mine – Steady State Mine Continues With Strong Production and Cost Control Performance
The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Overall, proven and probable gold reserves at LaRonde total approximately 4.8 million ounces from 34.4 million tonnes grading 4.4 grams per tonne (“g/t”). Overall, the reserve and resource base at LaRonde increased by approximately 5% over the past year.
The LaRonde mill processed an average of 6,983 tonnes of ore per day in the fourth quarter of 2009, compared with an average of 7,025 tonnes per day in the corresponding period of 2008. Milling performance for the full year 2009 was 6,975 tonnes per day versus 7,210 tonnes per day in 2008, a lower rate due to planned maintenance shutdowns in October and December of 2009. LaRonde has been operating at a steady state of approximately 7,000 tonnes per day for more than six years, since its final expansion in 2003.
Minesite costs per tonne5 were approximately C$69 in the fourth quarter, better than expected. These costs are higher than the C$64 per tonne experienced in the fourth quarter of 2008. Minesite costs per tonne for the full year 2009 were approximately C$72, roughly 7% higher than in 2008 due to cost pressures in the industry for inputs such as labour and chemical reagents, but in line with expectations.
On a per ounce basis, net of byproduct credits, LaRonde’s total cash costs per ounce were minus $84 in the fourth quarter on production of 46,397 ounces of gold. This compares with the fourth quarter of 2008 when total cash costs per ounce were $545 on production of 54,270 ounces of gold. The decrease in total cash costs is largely due to significantly higher byproduct metal prices.
For the full year 2009, LaRonde’s total cash costs per ounce were $103 on gold production of 203,494 ounces, placing it among the lowest cash cost gold mines in the industry. This compares to total cash costs per ounce of $106 on gold production of 216,208 in 2008, as lower gold production was more than offset by stronger byproduct metals prices.
Gold production in 2010 at LaRonde is expected to be approximately 180,000 ounces as the gold grade of the mine does not increase until late 2011 when the deeper, gold rich, ore is accessed via the new internal shaft of the LaRonde Extension. Post-2011, LaRonde is expected to produce an average of 337,000 ounces of gold per year, reflecting the higher gold grades at depth.
Life of mine average gold production is expected to be approximately 314,000 ounces per year through 2023. First production from the new internal shaft of the LaRonde Extension remains on schedule for late 2011. The deposit remains open at depth.
5 Minesite costs per tonne is a non-GAAP measure. For reconciliation of this measure to production costs, as reported in the financial statements, see Note 1 to the financial statements at the end of this news release.
Goldex Mine – Steady State Mine Achieves Record Quarterly Gold Production
The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 24.7 million tonnes grading 2.1 g/t. Overall, the reserve and resource base at Goldex decreased by approximately 3%, including what was mined during 2009.
The Goldex mill processed an average of 7,655 tonnes per day in the fourth quarter of 2009, significantly exceeding the design capacity for the plant of approximately 6,900 tonnes per day. During the fourth quarter of 2008, the plant processed 6,140 tonnes per day. Milling performance for the full year 2009 was 7,164 tonnes per day. As the mine began production mid-year 2008, no comparable period exists.
Minesite costs per tonne at Goldex were approximately C$23 in the fourth quarter, essentially unchanged from the fourth quarter 2008 figure of C$24. For the full year 2009, mining costs per tonne were approximately C$23. Agnico-Eagle believes this is one of the lowest cost hard rock underground mines in the world.
Payable gold production in the fourth quarter of 2009 was a record 46,075 ounces at total cash costs per ounce of $338. This compares to fourth quarter 2008 gold production of 31,972 ounces at total cash costs per ounce of $323. The increase in production is due to increased grade and throughput in the mill. In the fourth quarter of 2009, the Canadian dollar was much stronger versus the US dollar than in the fourth quarter of 2008, negatively impacting the total cash costs.
For the full year 2009, Goldex’s payable gold production was 148,849 at total cash costs per ounce of $366. This compares to full year 2008 production of 57,436 ounces at total cash costs per ounce of $419, reflecting the partial year and the start-up phase of the mine. Gold production for 2010 is expected to be 164,000 ounces.
Life of mine average annual gold production is expected to be approximately 160,000 ounces per year through 2017.
In 2009, the Board of Directors approved the expansion of the mine from 6,900 tonnes per day to at least 8,000 tonnes per day. This project required additions primarily to the crushing circuit and minor additions to the mining fleet. Installation of the permanent surface crusher is complete and the increased mining rate is expected to be realized in early 2011 as the underground mining advances enough to support the higher rate.
Kittila Mine – Fourth Quarter Throughput and Recoveries Highest To Date
The 100% owned Kittila mine in northern Finland poured its first gold in January 2009 and commercial production was achieved in May 2009. Proven and probable gold reserves total approximately 4.0 million ounces from 26.0 million tonnes grading 4.8 g/t. This is up approximately 25%, or 0.8 million ounces, from the 2008 level largely as a result of successful conversion drilling below the Suuri and Roura orebodies. Overall, the combined reserves and resources were essentially unchanged year over year as the focus during 2009 was on resource to reserve conversion of the Suuri and Roura resource at depth. During 2010, the focus of the exploration drilling will be to further convert resource to reserve and to increase the resource beneath the Suuri and Roura zones and to the north.
Life of mine average gold production is expected to be approximately 150,000 ounces per year through 2023.
The Kittila mill processed an average of 2,728 tonnes per day in the fourth quarter of 2009, approximately 90% of its 3,000 tonne per day design rate. In December, the mill attained in excess of 3,500 tonnes per day. Overall gold recoveries in the fourth quarter of 2009 were a quarterly record of 76.2%, heading towards the design rate of 83%, which is expected to be achieved in 2010.
Minesite costs per tonne at Kittila were approximately €46 in the fourth quarter. The cost performance in the fourth quarter was significantly better than earlier in 2009, and well below the full year minesite costs per tonne of €54. This improvement is largely attributable to higher throughput rates in the mill and improved productivity in the open pit.
Fourth quarter gold production at Kittila was a record 35,270 ounces at total cash costs per ounce of $464, close to the long term expectation in terms of cost. For the full year 2009, payable gold production from Kittila was 71,838 ounces at total cash costs of $668 per ounce. Gold production in 2010 is expected to be 147,100 ounces.
A study is underway examining the possibility of increasing the production rate at Kittila. Results of the study are expected to be released in 2011.
Lapa – Final Optimization Underway
The 100% owned Lapa mine in northwestern Quebec began production in April 2009 and achieved commercial production in May 2009. Proven and probable gold reserves total approximately 0.8 million ounces from 3.2 million tonnes grading 8.2 g/t. The reserve ounces are down approximately 20% from the 2008 figure largely due to the impact of higher than expected operating costs (largely increased ground support and higher grinding costs) and ore dilution. Overall, the reserve and resource base decreased by approximately 15% as the higher operating cost assumption resulted in a higher cut-off grade. During 2010, an exploration drift will facilitate drilling along the trend to the east and at depth. These areas have not previously been explored.
The Lapa circuit, at the LaRonde mill, processed an average of 1,188 tonnes per day in the fourth quarter of 2009. This rate was slightly lower than expected, as a five day maintenance shutdown at the LaRonde site in December affected throughput. However, the mine is operating as expected currently. With commercial production achieved at May 1, 2009, there is no comparable period in 2008.
Minesite costs per tonne were C$148 in the fourth quarter of 2009, slightly higher than expected as the mill shutdown, dilution and ground support costs negatively impacted costs versus the original 2009 forecast. Since May 1, 2009, minesite costs per tonne were C$140, as expected. Costs in 2010 are expected to decline as operating efficiencies are realized as the Company gains experience with the orebody.
Payable production in the fourth quarter of 2009 was 22,590 ounces of gold at total cash cost per ounce of $608. For the partial year, payable production was 52,602 ounces of gold at total cash costs of $751 per ounce. These costs are expected to decline in 2010 as operating efficiencies are achieved.
Payable production in 2010 is expected to be approximately 115,000 ounces of gold, the same rate as expected annually over the life of mine through 2015.
Pinos Altos – Commercial Production Achieved November 1, 2009. Additional Filter Capacity On Order
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009. For 2009, proven and probable reserves, including the stand-alone Creston Mascota deposit, total 3.4 million ounces of gold and 94 million ounces of silver from 42.0 million tonnes grading 2.5 g/t of gold and 69 g/t silver. While the gold reserves are down 5% year over year, the overall reserve and resource base at Pinos Altos increased by approximately 8% largely due to exploration success at the Sinter and Cubiro zones. This exploration success more than offset the impact of higher operating cost assumptions going forward.
The Pinos Altos mill processed an average of 1,863 tonnes per day in the fourth quarter of 2009. This rate was lower than the design rate of 4,000 tonnes per day due to the ongoing issues with the tailings filters (more clay material in the ore than expected). However, the mill has recently achieved improved throughput in excess of 3,000 tonnes per day and further improvements are anticipated. Additional tailings filtration capacity has been ordered for installation during the third quarter of 2010. It is anticipated that the mill capacity could increase to 5,000 tonnes per day as a result of this $15 million installation.
Productivity in the open pit and underground mining operations during 2009 was in accordance with expectations. Minesite costs per tonne were $28 in the fourth quarter of 2009. With commercial production achieved at November 1, 2009, there is no comparable period in 2008.
Payable production in the fourth quarter of 2009 was 12,944 ounces of gold (9,565 ounces commercial) and 100,000 ounces of silver at total cash cost per ounce of gold of $596. These costs are expected to decline in 2010 as throughput improves.
Payable production in 2010 is expected to be 150,000 ounces of gold and 1.6 million ounces of silver.
Life of mine average gold production is expected to be approximately 170,000 ounces per year through 2028, including production from Creston Mascota. Over this period, annual silver production is expected to average 2.5 million ounces.
Site clearing, basic engineering, and early construction activities have commenced at the nearby Creston Mascota project which is expected to achieve commercial production in the first quarter of 2011.
In 2010, studies are anticipated regarding the development of several satellite deposits on the Pinos Altos concession package including the Sinter, Cubiro and San Eligio zones.
Meadowbank – First Gold Pour Expected Near Month End
The 100% owned Meadowbank mine project in Nunavut, northern Canada, is expected to begin production in the first quarter of 2010. Proven and probable gold reserves total 3.7 million ounces from 32.2 million tonnes grading 3.5 g/t, essentially unchanged from 2008 levels, in spite of higher projections for operating costs. Overall, the total resource at Meadowbank has increased by more than 100% when compared with the 2008 level. The large majority of this growth came from the southern end of the Portage deposit near the Goose Island and Goose South zones. During the 2010 drilling season, conversion and expansion of this large resource to reserves will remain a priority.
Life of mine average annual gold production is expected to be approximately 350,000 ounces through 2019.
While open pit mining continues and the ore stockpile grows (currently approximately 600,000 tonnes grading 3.8 gpt), the final mill commissioning is underway with waste now being fed through the grinding mills. An equivalent rate of 6,000 tonnes per day has been achieved as compared to the design rate of 8,500 tonnes per day. It is expected that the first (low grade) ore will be introduced into the full mill circuit in the next week or so. The first gold pour is expected near month end. Commercial production is anticipated for April 2010.
A study is underway to examine the possibility of increasing the production rate at Meadowbank from 8,500 tpd to 10,000 tpd. The study will be completed in the first quarter with review in the second quarter. It is expected that the increased rate could be achieved by mid-2012.
About Agnico-Eagle
Agnico-Eagle is a long established, Canadian headquartered, gold producer with operations located in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde mine is Canada's largest operating gold mine in terms of reserves. The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales. It has paid a cash dividend for 28 consecutive years.
AGNICO-EAGLE MINES LIMITED SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS (thousands of United States dollars, except where noted, US GAAP basis, Unaudited) Three months ended Year ended December 31, December 31, 2009 2008 2009 2008 Gross profit (exclusive of amortization shown below)
| LaRonde.................................................................................................... | $59,425 | $12,125 | $188,000 | $164,157 |
| Goldex ....................................................................................................... | 33,891 | 14,464 | 88,151 | 17,919 |
| Lapa .......................................................................................................... | 8,019 | — | 9,937 | — |
| Kittila.......................................................................................................... | 14,964 | — | 18,993 | — |
| Pinos Altos................................................................................................. | 2,363 | — | 2,363 | — |
| Operating margin ....................................................................................... | 118,662 | 26,589 | 307,444 | 182,076 |
| Amortization............................................................................................... | 21,661 | 12,538 | 72,461 | 36,133 |
| Corporate................................................................................................... | 30,275 | 3,255 | 126,945 | 49,952 |
| Income before tax ...................................................................................... | 66,726 | 10,796 | 108,038 | 95,991 |
| Tax provision.............................................................................................. | 18,790 | (11,078) | 21,500 | 22,824 |
| Net earnings ................................................................................... | $47,936 | $21,874 | $86,538 | $73,167 |
| Net earning per share....................................................................... | $0.31 | $0.15 | $0.55 | $0.51 |
| Operating cash flow .......................................................................... | $53,701 | $(46,442) | $115,106 | $118,081 |
Realized price per sales volume (US$):
| Gold (per ounce)..................................................................................... | $1,153 | $789 | $1,024 | $879 |
| Silver (per ounce).................................................................................... | $19.17 | $9.22 | $15.54 | $14.92 |
| Zinc (per tonne)...................................................................................... | $2,506 | $663 | $1,808 | $1,745 |
| Copper (per tonne).................................................................................. | $7,469 | $(374) | $6,140 | $6,220 |
Payable production:
Gold (ounces)
| LaRonde................................................................................................. | 46,397 | 54,270 | 203,494 | 216,208 | ||
| Goldex .................................................................................................... | 46,075 | 31,972 | 148,849 | 57,436 | ||
| Lapa (Note 1).......................................................................................... | 22,590 | — | 52,602 | — | ||
| Kittila (Note 2)......................................................................................... | 35,270 | 3,118 | 71,838 | 3,118 | ||
| Pinos Altos (Note 3) ................................................................................ | 12,944 | — | 16,189 | — | ||
| Total gold (ounces) | 163,276 | 89,360 | 492,972 | 276,762 |
Silver (000s ounces) ...............................................................................
| LaRonde................................................................................................. | 860 | 930 | 3,919 | 4,079 |
| Pinos Altos (Note 3) ................................................................................ | 100 | — | 116 | — |
| Total silver (000s ounces) | 960 | 930 | 4,035 | 4,079 |
| Zinc (tonnes) .......................................................................................... | 15,450 | 14,383 | 56,186 | 65,755 |
| Copper (tonnes)...................................................................................... | 1,523 | 1,737 | 6,671 | 6,922 |
Payable metal sold:
| Gold (ounces – LaRonde)........................................................................ | 44,453 | 57,391 | 206,536 | 214,153 | |
| Gold (ounces – Goldex)........................................................................... | 47,208 | 30,588 | 144,182 | 44,448 | |
| Gold (ounces – Lapa) (Note 1)................................................................ | 23,885 | — | 41,721 | — | |
| Gold (ounces – Kittila) (Note 2) ............................................................... | 30,659 | — | 59,385 | — | |
| Gold (ounces – Pinos Altos) (Note 3)....................................................... | 12,529 | — | 12,529 | — | |
| Silver (000s ounces – LaRonde).............................................................. | 801 | 965 | 3,833 | 4,023 | |
| Silver (000s ounces – Pinos Altos) (Note 3)............................................. | 38 | — | 38 | — | |
| Zinc (tonnes) .......................................................................................... | 13,951 | 12,142 | 58,391 | 62,653 | |
| Copper (tonnes)...................................................................................... | 1,532 | 1,943 | 6,689 | 6,913 |
Total cash costs per ounce (Note 4):
Gold
| LaRonde.................................................................................................... | $(84) | $545 | $103 | $106 |
| Goldex ...................................................................................................... | $338 | $323 | $366 | $419 |
| Lapa (Note 1)............................................................................................. | $608 | — | $751 | — |
| Kittila (Note 2)............................................................................................ | $464 | — | $668 | — |
| Pinos Altos (Note 3) ................................................................................... | $596 | — | $596 | — |
| Weighted average total cash costs per ounce ............................................. | $297 | $463 | $347 | $162 |
Note 1
Lapa achieved commercial production as of May 1, 2009. Payable production includes commercial production ounces of 52,602 since May 1, 2009; non-commercial production ounces were nil.
Note 2
Kittila achieved commercial production as of May 1, 2009. Payable production includes commercial production ounces of 65,571 since May 1, 2009. Non-commercial production was 6,267 ounces.
Note 3
Pinos Altos achieved commercial production as of November 1, 2009. Payable production includes commercial production ounces of 9,495 since November 1, 2009. Non-commercial production was 6,624 ounces.
Note 4
Total cash costs per ounce is calculated net of copper, zinc and other byproduct credits. The weighted average total cash cost per ounce is based on commercial production ounces. Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see Note 1 to the financial statements. See also “Note Regarding Certain Measures of Performance”.
AGNICO-EAGLE MINES LIMITED CONSOLIDATED BALANCE SHEETS (thousands of United States dollars, US GAAP basis)
(Unaudited)
As at As at December 31, 2009 December 31, 2008
ASSETS Current Cash and cash equivalents.................................................................................... $163,593 $99,381 Trade receivables.................................................................................................. 93,570 45,640 Inventories:
| Ore stockpiles..................................................................................................... | 41,286 | 24,869 |
| Concentrates ...................................................................................................... | 31,579 | 5,013 |
| Supplies ............................................................................................................. | 100,885 | 40,014 |
| Other current assets.............................................................................................. | 173,127 | 136,377 |
| Total current assets ................................................................................................. | 604,040 | 351,294 |
| Other assets ............................................................................................................ | 33,641 | 8,383 |
| Future income and mining tax assets ...................................................................... | 27,878 | 21,647 |
| Property, plant and mine development.................................................................... | 3,581,798 | 2,997,500 |
$4,247,357 $3,378,824 LIABILITIES AND SHAREHOLDERS' EQUITY Current
| Accounts payable and accrued liabilities............................................................... | $155,432 | $139,795 |
| Dividends payable................................................................................................. | 28,198 | 28,304 |
| Interest payable .................................................................................................... | 1,666 | 146 |
| Income taxes payable ........................................................................................... | 4,501 | 4,814 |
| Total current liabilities.............................................................................................. | 189,797 | 173,059 |
| Bank debt ............................................................................................................... | 715,000 | 200,000 |
| Fair value of derivative financial instruments............................................................ | 663 | 12,823 |
| Reclamation provision and other liabilities ............................................................... | 96,255 | 71,770 |
| Future income and mining tax liabilities................................................................... | 493,881 | 403,416 |
Shareholders' equity Common shares Authorized — unlimited
| Issued — 156,655,056 (December 31, 2008 — 154,808,918)............................ | 2,378,759 | 2,299,747 |
| Stock options........................................................................................................... | 65,771 | 41,052 |
| Warrants.................................................................................................................. | 24,858 | 24,858 |
| Contributed surplus................................................................................................. | 15,166 | 15,166 |
| Retained earnings ................................................................................................... | 216,158 | 157,541 |
| Accumulated other comprehensive income (loss).................................................... | 51,049 | (20,608) |
| Total shareholders' equity........................................................................................ | 2,751,761 | 2,517,756 |
$4,247,357 $3,378,824