Agnico-Eagle Reports Q1 2010 Results; Record Quarterly Revenue and Gold Production; Meadowbank Mine Achieves Commercial Production
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 Q1 2010 RESULTS;
RECORD QUARTERLY REVENUE AND GOLD PRODUCTION;
MEADOWBANK MINE ACHIEVES COMMERCIAL PRODUCTION
Toronto (April 29, 2010) – Agnico-Eagle Mines Limited ("Agnico-Eagle" or the “Company”) today reported quarterly net income of $22.3 million, or $0.14 per share, for the first quarter of 2010. This result includes a non-cash foreign currency translation loss of $8.9 million, or $0.06 per share, as well as a non-cash stock-based compensation expense of $17.3 million, or $0.11 per share. In the first quarter of 2009, the Company reported net income of $54.3 million, or $0.35 per share. A 105% increase in gold production and a similar increase in gross mine profit were more than offset by non-cash foreign currency translation losses, increased depreciation, non-cash stock-based compensation and the deferred tax provision.
First quarter 2010 cash provided by operating activities was $74.5 million (including an increase in working capital of $18.0 million), up from cash provided by operating activities of $48.8 million in the first quarter of 2009 (which included a decrease in working capital of $7.6 million). This increase was largely due to gold production that was more than double that in the comparable period in 2009 and significantly higher metal prices for gold, zinc, silver and copper.
“Strong operating earnings and cash flows are being generated from our six gold mines. Three of the mines are now operating at steady state and the other three are in the stage of final commissioning and optimization” said Sean Boyd, Vice-Chairman and Chief Executive Officer. “With internal expansions being studied for Pinos Altos, Meadowbank and Kittila, we are well positioned to continue to increase our gold reserves, gold production, earnings and cash flows. Each of these important performance metrics should continue to grow on a per share basis” added Mr. Boyd.
First quarter 2010 highlights include:
- Six Operating Gold Mines – with the Meadowbank mine declaring commercial production as of March 1, 2010, Agnico-Eagle now has a portfolio of six operating mines
- Record Gold Production – record quarterly production of 188,232 ounces, despite a longer than expected maintenance shutdown at Kittila
- Good Cost Control Continues – minesite costs per tonne continue to be on target at the steady state mines; LaRonde, Goldex and Lapa.
- Improved Available Liquidity - subsequent to quarter end, issued $600,000,000 of unsecured long-term notes with all proceeds used to reduce amounts outstanding under the existing credit lines
Payable gold production1 in the first quarter of 2010 was a record 188,232 ounces at total cash costs per ounce2 of $443. This compares with payable gold production of 91,812 ounces at total cash costs per ounce of $312 in the first quarter of 2009. The increase in total cash costs per ounce in the first quarter of 2010 is mainly due to the higher costs at Kittila and Meadowbank as will be discussed in subsequent sections, and a stronger Canadian dollar, offset somewhat by a significant increase in gold production.
For full year 2010, both gold production and total cash costs are still expected to be in line with previous guidance of between 1.0 and 1.1 million ounces and $399 per ounce, respectively.
First Quarter 2010 Results Conference Call Webcast
The Company’s senior management will host a conference call on Friday, April 30, 2010 at 8:30 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 416-644-3417 or Toll-free 877- 974-0446. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay archive:
Please dial 416-640-1917 or Toll-free 877-289-8525, access code 4282479#.
The conference call replay will expire on Friday May 7, 2010.
The webcast along with presentation slides will be archived for 180 days on the website.
Annual and Special General Meeting (“AGM”)
The AGM will begin on Friday, April 30, 2010 at 11:00 am (E.S.T.). The meeting will be held at Le Meridien King Edward Hotel, Vanity Ballroom located at 37 King Street East, Toronto, Canada. During the meeting we will provide an overview of our strategy and growth objectives and our operating and financial results for the first quarter. For those unable to attend in person, please see alternative listed below.
Via Telephone:
For those preferring to listen in only by telephone, please dial 416-644-3414 or Toll-free 800-814-4859. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
1 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. 2 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 416-640-1917 or Toll-free 877-289-8525, access code 4278072#.
The conference call replay will expire on Friday May 7, 2010.
Cash Position Remains Strong – Notes Issuance Provides Additional Liquidity
Cash and cash equivalents decreased to $118.1 million at March 31, 2010 from the December 31, 2009 balance of $163.6 million. All of the Company’s operating cash flow and a portion of its existing cash balances were used to reinvest in its gold growth projects and to return cash to the shareholders in the form of a dividend payment. Agnico-Eagle has now paid a dividend for 28 consecutive years.
Capital expenditures in the first quarter of 2010 were $112.6 million, including $39.7 million at Meadowbank, $24.8 million at LaRonde, $19.8 million at Pinos Altos, $15.6 million at Kittila, $7.9 million at Lapa and $4.8 million on Goldex.
For 2010, there is no change to the capital expenditure estimates which are expected to total approximately $478 million. With its cash balances, anticipated cash flows, available bank lines and increased debt capacity, Agnico-Eagle remains fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland, Mexico and the USA.
Subsequent to the end of the first quarter, the Company closed a private placement of $600 million of guaranteed senior unsecured notes due 2017, 2020 and 2022. The notes have a weighted average maturity of 9.84 years and weighted average yield of 6.59%. All of the proceeds were used to reduce the amount outstanding under its credit lines. Available credit lines are now more than $750 million.
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. 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”).
The LaRonde mill processed an average of 7,372 tonnes per day (“tpd”) of ore in the first quarter of 2010, compared with an average of 7,203 tpd in the corresponding period of 2009. LaRonde has been operating at a steady state of approximately 7,000 tpd for approximately seven years, since its last expansion in 2003.
Minesite costs per tonne3 were approximately C$71 in the first quarter, in line with the C$72 per tonne experienced in the first quarter of 2009. The consistent minesite cost performance is particularly noteworthy given that it was achieved despite industry cost pressures on labour and chemical reagents.
Net of byproduct credits, LaRonde’s total cash costs per ounce were $167 in the first quarter on production of 45,036 ounces of gold. This compares favourably with the first
3 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.
quarter of 2009, when total cash costs per ounce were $294 on production of 51,339 ounces of gold. The decrease in total cash costs is largely due to significantly higher byproduct metal prices, offset somewhat by a stronger Canadian dollar and lower gold production. The decrease in ounces produced is due to lower grades mined to date in 2010, as expected.
Gold production in 2010 at LaRonde is expected to be approximately 180,000 ounces. Post-2010, LaRonde is expected to produce an average of 324,000 ounces of gold per year through 2023, reflecting the higher gold grades at depth, where the deposit remains open.
Goldex Mine – Steady State Mine Continues Strong Performance
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 2.0 g/t.
The Goldex mill processed an average of 7,410 tpd in the first quarter of 2010, continuing to exceed the design capacity for the plant of approximately 6,900 tpd. During the first quarter of 2009, the plant processed 6,770 tpd.
Minesite costs per tonne at Goldex were approximately C$24 in the first quarter of 2010, slightly lower than the C$25 achieved in the first quarter of 2009 and reflecting continued optimization at this steady-state mine. Agnico-Eagle believes this is one of the lowest cost hard rock underground mines in the world on a minesite cost per tonne basis.
Payable gold production in the first quarter of 2010 was 42,269 ounces at total cash costs per ounce of $375. This compares to the first quarter of 2009 when gold production was 35,959 ounces at total cash costs per ounce of $338. The increase in production is mainly due to improved mill recoveries and higher throughput. The negative impact of the stronger Canadian dollar more than offset higher gold production and led to higher total cash costs in the 2010 period relative to the comparable period in 2009.
Gold production for 2010 is expected to be 164,000 ounces. Life of mine average annual gold production is expected to be approximately 168,000 ounces per year through 2017.
The expansion of the mine from 6,900 tpd to at least 8,000 tpd was approved in 2009. This project required additional infrastructure primarily in 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 consistently provide sufficient ore to support the higher throughput.
Kittila Mine – Undergoing final mill optimization
The 100% owned Kittila mine in northern Finland achieved commercial production in May 2009. Proven and probable gold reserves total approximately 4.0 million ounces from 26.0 million tonnes grading 4.8 g/t.
The Kittila mill processed an average of 2,419 tpd in the first quarter of 2010. As the mine achieved commercial production in May 2009, there is no comparable year-over-year period. In the fourth quarter of 2009, Kittila processed an average of 2,728 tpd, with the lower production in the current quarter being primarily a result of a scheduled maintenance shutdown in the processing plant. The shutdown lasted approximately two weeks longer than expected with the mill restarting on April 10, 2010.
Gold recoveries in the first quarter of 2010 averaged approximately 71%, down from the 76% achieved in the fourth quarter of 2009. The lower recoveries were largely due to a series of process changes which were implemented in the first quarter of 2010. The result of these changes are expected to lead to improving recoveries over the next several quarters as further optimization is achieved in the plant.
The current plan for improvement of the mill recoveries includes further ore characterization and blending, in coordination with additional laboratory testing. The design rate of 83% mill recovery is expected to be achieved by the end of 2010.
Minesite costs per tonne at Kittila were approximately €64 in the first quarter, higher than the €46 achieved in the fourth quarter of 2009. The cost performance in the current quarter was negatively impacted by the extended maintenance shutdown.
First quarter gold production at Kittila was 24,547 ounces at total cash costs per ounce of $735, compared to 35,270 ounces at cash costs per ounce of $464 in the fourth quarter of 2009. The gold production was lower, largely due to the maintenance shutdown. With lower production of gold, total cash costs per ounce rose accordingly.
Gold production in 2010 is expected to be approximately 147,000 ounces. Life of mine average gold production is expected to be approximately 150,000 ounces per year through 2024.
A study is underway examining the possibility of increasing the production rate at Kittila reflecting the continued growth of the reserve base. Results of the study are expected to be released in 2011.
Lapa – Strong Tonnage And Cost Performance
The 100% owned Lapa mine in northwestern Quebec 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 Lapa circuit, located at the LaRonde mill, processed an average of 1,432 tpd, which was a higher rate than expected (there is no corresponding year-over-year period for 2009 as the mine became commercial in May 2009). This rate is approximately 20% higher than the 1,188 tpd achieved in the fourth quarter of 2009. The design rate for the mill is 1,500 tpd and is expected to be achieved in the second quarter of 2010.
Minesite costs per tonne were C$123 in the first quarter of 2010, significantly lower than the C$148 achieved in the fourth quarter of 2009, due to the increased production tonnage.
Payable production in the first quarter of 2010 was 31,553 ounces of gold at total cash costs per ounce of $489. This compares to 22,590 ounces of gold in the fourth quarter of 2009 at total cash cost per ounce of $608. Like minesite costs, total cash costs have declined as operating efficiencies are achieved through optimization, offset somewhat by a stronger Canadian dollar.
Payable production in 2010 is expected to be approximately 116,000 ounces of gold, approximately the same rate as expected annually over the life of mine through 2015.
Pinos Altos – Ramp-up Continues With Improved Results. Additional Filter Capacity Expected in Q3
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 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 of ore grading 2.5 g/t of gold and 69 g/t silver.
The Pinos Altos mill processed an average of 2,418 tpd in the first quarter of 2010, representing a significant improvement over the prior quarter (1,863 tpd) as the ramp up to the design rate of 4,000 tpd continues. Mill throughput improved every month in the first quarter and the mill averaged more than 4,000 tpd in the first three weeks of April 2010.
Additional tailings filtration capacity is expected to be installed during the third quarter of 2010 which should further de-bottleneck the system and provide additional capacity for a proposed increase in throughput.
Minesite costs per tonne were $34 in the first quarter of 2010, compared to $28 in the fourth quarter of 2009. These fourth quarter 2009 costs were unusually low, mainly due to stockpile adjustments prior to the declaration of commercial production in November 2009. The life of mine minesite costs are expected to be approximately $40 per tonne reflecting the increasing contribution from the higher cost underground mine. The first underground stopes are expected to be extracted in the second quarter of 2010. Accelerated stripping of waste in the open pit mine will commence in the second quarter of 2010 resulting in higher expenses for the balance of the year.
Payable production in the first quarter of 2010 was 26,228 ounces of gold at total cash costs per ounce of $436. This compares favourably with the prior quarter which had payable gold production of 12,944 ounces (9,565 ounces commercial) at total cash costs per ounce of gold of $596.
Payable production in 2010 is expected to be 151,000 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.
Further exploration is underway and the Company is anticipating the eventual development of several other satellite deposits on the Pinos Altos concession package including the Sinter, Cubiro and San Eligio zones.
Meadowbank – Sixth Mine Achieves Commercial Production
The 100% owned Meadowbank mine project in Nunavut, Canada, achieved commercial production in March 2010. Proven and probable gold reserves total 3.7 million ounces from 32.2 million tonnes grading 3.5 g/t.
For the month of March 2010, the Meadowbank mill processed an average of 6,397 tpd. Gold recovery in the plant averaged approximately 85% for the month. Recoveries are expected to average 93% in 2010. Minesite costs per tonne were C$93 and are expected to decline and average C$68 for 2010 as the mine continues to ramp up to its design production rate of 8,500 tpd in the second quarter of 2010. A portable crusher will be installed in the second quarter which will facilitate the higher throughput.
Payable production during the first quarter of 2010 was 18,599 ounces of gold, of which 1,084 ounces were non-commercial. Total cash costs per ounce were $840 and are expected to decline as the mine and mill operations are optimized and production increases.
Gold production in 2010 is expected to be approximately 300,000 ounces. Life of mine average annual gold production is expected to be approximately 350,000 ounces through 2019.
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 is scheduled to be completed midyear 2010. If the Company proceeds with the expansion, it is expected that the increased rate could be achieved by year end 2012.
Mine Tour and Grand Opening Ceremony
Agnico-Eagle will be hosting a day trip for analysts and investors to Meadowbank, located in Nunavut in the Canadian Arctic, on June 17 2010. Interested parties should contact Hazel Winchester at [email protected], or 416 847 3717. All presentation materials will also be posted on the Company’s website.
New Investor and Analyst Tool
Agnico-Eagle is pleased to announce a new interactive research tool on the Company’s website, called “Financial and Operating Database”. It is located under the Investor Centre area of the Agnico-Eagle website.
The purpose of the tool is to provide investors, analysts and other stakeholders with greater, more efficient access to Agnico-Eagle’s financial and operating figures, all in a centralized location.
With this tool users can:
- View financial and operating figures for the past 5 years in a single stream of data
- Information can be viewed on a quarterly and annual basis
- Operating metrics include key supplementary information such as production, grades, cash costs, reserves, capital expenditures, etc.
- To facilitate analysis of the data, the ratios tab provides a large set of generally accepted financial ratios, as well as their definitions
- Most ratios and fundamental data can be graphed within the investor tool, giving the user the ability to combine numerous relevant metrics on a single scale
- All data can be exported to Excel for further analysis
User feedback, as well as data specific enquiries should be directed to Dmitry Kushnir at [email protected], or 416-847-8665.
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 March 31, 2010 2009 Gross mine profit (exclusive of amortization shown below) (Note 1)
| LaRonde.................................................................................................... | $45,387 | $37,647 | |
| Goldex....................................................................................................... | 26,423 | 18,466 | |
| Lapa.......................................................................................................... | 21,273 | — | |
| Kittila ......................................................................................................... | 11,470 | — | |
| Pinos Altos................................................................................................. | 12,631 | — | |
| Meadowbank (Note 2)............................................................................... | 2,171 | — | |
| Total gross mine profit ............................................................................... | 119,355 | 56,113 | |
| Amortization .............................................................................................. | 30,503 | 12,130 | |
| Corporate................................................................................................... | 47,578 | 14,647 | |
| Income before tax...................................................................................... | 41,274 | 29,336 | |
| Tax provision ............................................................................................. | 18,942 | (25,005) | |
| Net earnings ................................................................................... | $22,332 | $54,341 | |
| Net earning per share....................................................................... | $0.14 | $0.35 | |
| Operating cash flow.......................................................................... | $92,531 | $48,823 |
Realized price per sales volume (US$):
| Gold (per ounce) .................................................................................... | $1,111 | $969 |
| Silver (per ounce) ................................................................................... | $17.87 | $13.53 |
| Zinc (per tonne)...................................................................................... | $2,235 | $1,213 |
| Copper (per tonne) ................................................................................. | $7,288 | $4,110 |
Payable production:
Gold (ounces)
| LaRonde................................................................................................. | 45,036 | 51,339 | |
| Goldex.................................................................................................... | 42,269 | 35,959 | |
| Lapa ...................................................................................................... | 31,553 | — | |
| Kittila ..................................................................................................... | 24,547 | 4,514 | |
| Pinos Altos ............................................................................................. | 26,228 | — | |
| Meadowbank (Note 2)............................................................................ | 18,599 | — | |
| Total gold (ounces) | 188,232 | 91,812 |
Silver (000s ounces)
| LaRonde................................................................................................. | 875 | 1,029 | |
| Pinos Altos.............................................................................................. | 222 | — | |
| Meadowbank (Note 2)............................................................................ | 2 | — | |
| Total silver (000s ounces) | 1,099 | 1,029 | |
| Zinc (tonnes) .......................................................................................... | 14,224 | 13,291 | |
| Copper (tonnes)...................................................................................... | 1,052 | 1,682 |
Payable metal sold:
| Gold (ounces – LaRonde) ....................................................................... | 45,240 | 53,516 | |
| Gold (ounces – Goldex) .......................................................................... | 37,863 | 30,901 | |
| Gold (ounces – Lapa) ............................................................................. | 34,193 | — | |
| Gold (ounces – Kittila)............................................................................. | 30,674 | — | |
| Gold (ounces – Pinos Altos).................................................................... | 20,965 | — | |
| Gold (ounces – Meadowbank) (Note 2) .................................................. | 7,103 | — | |
| Silver (000s ounces – LaRonde) ............................................................. | 775 | 1,012 | |
| Silver (000s ounces – Pinos Altos).......................................................... | 221 | — | |
| Zinc (tonnes) .......................................................................................... | 14,529 | 17,057 | |
| Copper (tonnes)...................................................................................... | 1,047 | 1,686 |
Total cash costs per ounce of gold (Note 3):
| LaRonde.................................................................................................... | $167 | $294 |
| Goldex ...................................................................................................... | $375 | $338 |
| Lapa ......................................................................................................... | $489 | — |
| Kittila ........................................................................................................ | $735 | — |
| Pinos Altos ................................................................................................ | $436 | — |
| Meadowbank (Note 2)............................................................................... | $840 | — |
| Weighted average total cash costs per ounce............................................. | $443 | $312 |
Note 1
Gross mine profit is calculated as total revenues from all metals, by mine, minus total production costs, by mine.
Note 2
Meadowbank achieved commercial production as of March 1, 2010. Payable production includes commercial production ounces of 17,515 since March 1, 2010 and non-commercial production was 1,084 ounces.
Note 3
Total cash costs per ounce of gold is calculated net of silver, 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”.
CONSOLIDATED BALANCE SHEETS (thousands of United States dollars, US GAAP basis)
As at As at March 31, 2010 December 31, 2009
ASSETS Current Cash and cash equivalents.................................................................................... $118,052 $163,593 Trade receivables.................................................................................................. 73,181 93,570 Inventories:
| Ore stockpiles..................................................................................................... | 65,299 | 41,286 |
| Concentrates ...................................................................................................... | 47,413 | 31,579 |
| Supplies ............................................................................................................. | 92,559 | 100,885 |
| Other current assets.............................................................................................. | 192,720 | 173,127 |
| Total current assets ................................................................................................. | 589,224 | 604,040 |
| Other assets ............................................................................................................ | 39,522 | 33,641 |
| Future income and mining tax assets ...................................................................... | 27,705 | 27,878 |
| Property, plant and mine development.................................................................... | 3,653,294 | 3,581,798 |
$4,309,745 $4,247,357 LIABILITIES AND SHAREHOLDERS' EQUITY Current
| Accounts payable and accrued liabilities............................................................... | $136,751 | $155,432 | |
| Dividends payable................................................................................................. | — | 28,198 | |
| Interest payable .................................................................................................... | 1,327 | 1,666 | |
| Income taxes payable ........................................................................................... | 8,425 | 4,501 | |
| Total current liabilities.............................................................................................. | 146,503 | 189,797 | |
| Long term debt........................................................................................................ | 735,000 | 715,000 | |
| Fair value of derivative financial instruments............................................................ | 549 | 663 | |
| Reclamation provision and other liabilities ............................................................... | 100,652 | 96,255 | |
| Future income and mining tax liabilities................................................................... | 521,908 | 493,881 |
Shareholders' equity Common shares Authorized — unlimited
| Issued — 156,806,040 (December 31, 2009 — 156,655,056)............................ | 2,382,168 | 2,378,759 |
| Stock options........................................................................................................... | 84,155 | 65,771 |
| Warrants.................................................................................................................. | 24,858 | 24,858 |
| Contributed surplus................................................................................................. | 15,166 | 15,166 |
| Retained earnings ................................................................................................... | 238,490 | 216,158 |
| Accumulated other comprehensive income ............................................................ | 60,296 | 51,049 |
| Total shareholders' equity........................................................................................ | 2,805,133 | 2,751,761 |
$4,309,745 $4,247,357
CONSOLIDATED STATEMENTS OF INCOME (thousands of United States dollars except share and per share amounts, US GAAP basis)
Three months ended March 31, 2010 2009
REVENUES Revenues from mining operations ......................................... $237,583 $105,831 Interest and sundry income................................................... 827 4,693 Gain on sale of available-for-sale securities............................ 346 194
238,756 110,718 COSTS AND EXPENSES
| Production ............................................................................ | 118,227 | 49,718 |
| Exploration and corporate development................................. | 7,504 | 6,249 |
| Amortization.......................................................................... | 30,503 | 12,130 |
| General and administrative.................................................... | 28,430 | 18,800 |
| Provincial capital tax.............................................................. | (587) | 1,109 |
| Interest.................................................................................. | 4,504 | 869 |
| Foreign currency loss (gain) .................................................. | 8,901 | (7,493) |
| Income before income, mining and federal capital taxes........ | 41,274 | 29,336 |
Income and mining tax expense (recovery)............................ 18,942 (25,005)
Net income for the period...................................................... $22,332 $54,341
Net income per share — basic.............................................. $0.14 $0.35
Net income per share — diluted............................................ $0.14 $0.35
Weighted average number of shares outstanding (in thousands)
Basic .................................................................................. 156,692 155,184 Diluted................................................................................ 159,093 157,196