Investor Relations AGNICO -EAGLE REPORTS FIRST QUARTER 2011 RESULTS
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 FIRST QUARTER 2011 RESULTS
Toronto (April 28, 2011) – Agnico-Eagle Mines Limited ("Agnico-Eagle" or the “Company”) today reported quarterly net income of $45.3 million, or $0.27 per share for the first quarter of 2011. This result includes a non-cash foreign currency translation loss of $14.1 million, or $0.08 per share, stock option expense of $18.5 million, or $0.11 per share, an expense of $3.1 million, or $0.02 per share related to the March 10, 2011 Meadowbank fire, and a gain on sale of investments of $4.4 million, or $0.03 per share. Excluding these items would result in adjusted net income of $76.5 million, or $0.45 per share. In the first quarter of 2010, the Company reported net income of $22.3 million, or $0.14 per share.
First quarter 2011 cash provided by operating activities was $171.0 million ($146.9 million before changes in non-cash components of working capital), up from cash provided by operating activities of $74.5 million in the first quarter of 2010 ($92.5 million before changes in non-cash components of working capital).
The higher net income and cash provided by operating activities in 2011 was primarily due to 34% higher gold production and significantly higher metal prices when compared to the first quarter of 2010.
“Thanks to a quick response by the team at Meadowbank, the damage caused by the recent fire was limited and we are already back running at full capacity at the mine”, said Sean Boyd, Vice-Chairman and Chief Executive Officer. “On the back of record production quarters at our Pinos Altos and Kittila mines, and with the expected commissioning of the permanent secondary crusher at Meadowbank in the third quarter, we expect to have all six of our mines operating at a steady state as we head into the second half of the year. It is expected that gold production in the second half of this year should be approximately 20 percent higher than in the first half of 2011”, added Mr. Boyd.
First quarter highlights include:
- Record Quarterly Gold Output at Kittila – record quarterly recovery of 86.4%, and gold production of 40,317 ounces
- Record Operating Quarter at Pinos Altos – record quarterly gold production of 48,001 ounces at total cash costs of $312 per ounce1. Commercial production declared at Creston Mascota at March 1, 2011
- Strong Cash Generation – record quarterly cash provided by operating activities of $171 million, or $1.01 per share
1 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”.
- Gold Mineralization Extended at Kittila, Goldex, Lapa and Meliadine – details in today’s separate exploration news release
Payable gold production2 in the first quarter of 2011 was 252,362 ounces compared to 188,232 ounces in the first quarter of 2010. A description of the production and cost performance for each mine is set out further below.
The higher level of production in the 2011 period was largely due to production at the Meadowbank mine, which achieved commercial production in March 2010 and therefore only contributed one month to the first quarter total last year. The increase in gold production in 2011 was in spite of the fire which destroyed the Meadowbank kitchen complex and also in spite of unusually severe winter conditions. These factors negatively impacted production and costs, as disclosed in the Company’s news releases of March 10 and March 28, 2011.
Total cash costs for the first quarter of 2011 were $531 per ounce. This compares with $441 per ounce in the first quarter of 2010. The higher cost in 2011 was largely attributable to the issues at Meadowbank which more than offset the positive impact of higher byproduct metals prices.
First Quarter 2011 Results Conference Call and Webcast Tomorrow
The Company’s senior management will host a conference call on Friday, April 29, 2011 at 8:30 AM (E.D.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- 814-4859. 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 4428706#.
The conference call replay will expire on May 29, 2011.
The webcast along with presentation slides will be archived for 180 days on the website.
Cash Position Remains Strong
Cash and cash equivalents increased to $114.8 million at March 31, 2011, up slightly from the December 31, 2010 balance of $104.6 million, as higher cash flows in 2011 allowed the full repayment of the Company’s bank facilities.
2 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 shipped during the period or held as inventory at the end of the period.
Capital expenditures in the first quarter of 2011 were $96.8 million, including $22.9 million at Kittila, $20.3 million at Meadowbank, $19.7 million at LaRonde, $15.9 million at Pinos Altos, $11.9 million on Goldex and $5.0 million at Lapa.
With its current cash balances, anticipated cash flows and available bank lines, management believes that Agnico-Eagle remains fully funded for the development and exploration of its current pipeline of gold projects in Canada, Finland, Mexico and the USA.
Available bank lines as of March 31, 2011 were approximately $1.2 billion.
LaRonde Mine – Strong Cash Flow Generation Continues
The 100% owned LaRonde mine in northwestern Quebec, Canada, began operation in 1988. Overall, proven and probable gold reserves at LaRonde contain approximately 4.8 million ounces from 34.7 million tonnes grading 4.3 grams per tonne (“g/t”).
The LaRonde mill processed an average of 6,498 tonnes per day (“tpd”) in the first quarter of 2011, compared with an average of 7,372 tpd in the corresponding period of 2010. The lower throughput was largely due to the scheduling of a number of small stopes in the upper levels of the mine which cannot be mined as efficiently as larger mining blocks. LaRonde’s throughput is expected to be back to normal levels (approximately 7,000 tpd) in the second quarter of 2011.
Minesite costs per tonne3 were approximately C$86 in the first quarter of 2011. These costs are higher than the C$71 per tonne experienced in the first quarter of 2010. The increase is largely due to the 12% lower throughput in 2011, as discussed above.
On a per ounce basis, net of byproduct credits, LaRonde’s total cash costs per ounce were minus $12 in the first quarter of 2011 on production of 36,893 ounces of gold. This compares with the first quarter of 2010 when total cash costs per ounce were $167 on production of 45,036 ounces of gold. The decrease in total cash costs is largely due to significantly higher byproduct metal prices which more than offset lower byproduct metal production. The lower gold production in the 2011 period is largely related to planned mining of lower grade areas for much of the year and also due to lower first quarter throughput, as discussed above.
Gold production in 2011 at LaRonde is expected to be approximately 157,000 ounces as the gold grade of the stopes scheduled to be mined increases late in the year, when the deeper, higher grade, gold ore is planned to be accessed via the new internal shaft of the LaRonde Extension. However, considering currently high byproduct metals prices, the mine may be able to continue to extract some lower grade zinc and silver ores which were previously uneconomic. This could extend the mine’s life and benefit the total cash cost per ounce.
Post-2011, LaRonde is expected to ramp up to an average life of mine production of 338,000 ounces of gold per year, reflecting the higher gold grades at depth.
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.
The exploration focus at LaRonde continues to be on defining potential open pit material at Bousquet Zone 5 and underground resources at Ellison (on the boundary of Iamgold Corporation’s Westwood deposit). Updates on these areas are expected later in the year.
Goldex Mine – Low Cost Underground Mine
The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 27.8 million tonnes grading 1.8 g/t.
The Goldex mill processed an average of 7,950 tpd in the first quarter of 2011. During the first quarter of 2010, the plant processed 7,410 tpd. The mill has now demonstrated that it can sustain approximately 8,000 tonnes per day following the installation of a permanent secondary crusher and additional tailings pump capacity in the first quarter of 2010.
Minesite costs per tonne at Goldex were approximately C$23 in the first quarter of 2011, essentially unchanged from C$24 in the first quarter of 2010.
Payable gold production in the first quarter of 2011 was 38,500 ounces at total cash costs per ounce of $431. This compares to first quarter 2010 gold production of 42,269 ounces at total cash costs per ounce of $375. The decrease in gold production is due to the mining of lower grade material during the 2011 period which also negatively impacted the mill recovery and total cash costs per ounce.
Gold production for 2011 is expected to be approximately 183,500 ounces.
Construction of a new exploration ramp has been approved to explore the deeper D Zone at Goldex (approximately 150 metres below the GEZ Zone which is currently being mined). Total expenditure for the ramp and associated drilling is expected to be approximately $2 million in 2011, over and above the previously approved $6 million exploration budget for the mine.
Recent drilling has continued to intersect the D Zone. These thick intersections suggest further expansion of this zone. The latest drill results are discussed in today’s separate exploration press release.
Kittila Mine – Record Quarter
The 100% owned Kittila mine in northern Finland achieved commercial production in May 2009. Proven and probable gold reserves total approximately 4.9 million ounces from 32.7 million tonnes grading 4.6 g/t.
The Kittila mill processed an average of 2,911 tpd in the first quarter of 2011, close to its 3,000 tpd design rate. In the first quarter of 2010, the Kittila mill processed 2,419 tpd.
Gold recoveries in the first quarter of 2011 were a quarterly record of 86.4%, sustainably exceeding the design rate of 83% for the first time. This compares with the first quarter of 2010 when the recoveries were approximately 71%. This improvement in mill recovery was largely due to a change in the process which resulted in the ability to lower the chloride levels in the concentrate feed to the autoclave.
Minesite costs per tonne at Kittila were approximately €75 in the first quarter of 2011, compared to €64 in the first quarter of 2010. The increase in minesite costs was largely due to ore re-handling (blending), high contractor costs associated with blast hole charging, higher than expected energy consumption due to unusually severe winter conditions and much higher fuel costs.
Now that the mine is operating at steady state, the focus going forward will be on reducing the unit costs. The Company expects to transition to self-mining on surface and underground during 2011 which is expected to contribute to reduced costs.
First quarter 2011 gold production at Kittila was a record 40,317 ounces with a total cash cost per ounce of $687. In the first quarter of 2010 the mine produced 24,547 ounces at total cash costs per ounce of $735. The higher production and lower costs were largely the result of improved throughput and higher grades in the first quarter of 2011.
Gold production in 2011 is expected to be approximately 147,100 ounces.
A study is underway examining the possibility of increasing the production rate at Kittila. The study is expected to be reviewed in the fourth quarter of 2011.
Exploration drilling at Kittila has continued to extend the Suuri and Roura zones at depth and to the north. As the Company gains better access to these areas late in the year via a ramp, it is expected that the rate of growth of these zones will increase. Further details on the most recent drill holes are included in today’s separate news release.
Lapa – Record Quarterly Throughput
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009. Proven and probable gold reserves total approximately 0.7 million ounces from 2.8 million tonnes grading 7.4 g/t.
The Lapa circuit, at the LaRonde mill, processed an average of 1,581 tpd, a quarterly record, in the first quarter of 2011. This compares with an average of 1,432 tonnes per day in the first quarter of 2010 as Lapa has successfully achieved its design rate of 1,500 tpd.
Minesite costs per tonne were C$117 in the first quarter of 2011, compared to C$123 in the first quarter of 2010. The lower cost is largely due to the increased throughput, as discussed above.
Payable production in the first quarter of 2011 was 26,914 ounces of gold at total cash costs per ounce of $630. This compares with the first quarter of 2010, when production was 31,553 ounces of gold at total cash cost per ounce of $489. The decrease in gold production and increase in costs is largely due to a 27% decrease in grade and also due to an unscheduled five day shutdown in the mill for maintenance of grinding and ore storage. The lower grade was largely due to stope sequencing and lower grades in the 2011 mine model. The lower grades in the model reflect a higher gold price and therefore a lower cut off grade for reserves (reserve grade dropped to 7.4 g/t for 2011 versus 8.2 g/t for 2010).
Payable production in 2011 is expected to be approximately 125,000 ounces of gold.
During 2011, an exploration drift will facilitate drilling along the trend to the east and at depth. These areas have not previously been explored. The drilling is intended to investigate the possibility of extending the mine life. The most recent drill results are presented in today’s separate exploration news release.
Pinos Altos – Record Gold Production at Low Costs
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009. Proven and probable reserves, including the stand-alone, heap leach, Creston Mascota mine, total 3.3 million ounces of gold and 92.0 million ounces of silver from 44.2 million tonnes grading 2.3 g/t gold and 64.8 g/t silver.
The Pinos Altos mill processed an average of 4,475 tpd in the first quarter of 2011. This compares favourably with 2,584 tonnes per day in the first quarter of 2010, its first full quarter of commercial production. The mill is now routinely performing at process rates above the initial design capacity of 4,000 tpd.
Minesite costs per tonne were $28 in the first quarter of 2011, compared to $32 in the first quarter of 2010. The lower costs in 2011 are a result of the inclusion of the new Creston Mascota heap leach mine where minesite costs per tonne are much lower. The drop in costs was partly offset by the higher proportion of ore from the relatively higher cost underground mine (about 60% of the mill feed during the first quarter of 2011 compared to 100% from open pit during the first quarter of 2010).
Payable production in the first quarter of 2011 was a record 48,001 ounces of gold at total cash costs per ounce of $312, including the satellite Creston Mascota operation. This compares with production of 26,228 ounces at a total cash cost of $405 in the first quarter of 2010.
The first gold production from Creston Mascota occurred during the fourth quarter of 2010. In the first quarter of 2011, payable gold production from this heap leach operation was 4,561 ounces (included in the Pinos Altos total above). Commercial production at Creston Mascota was achieved on March 1, 2011.
Payable production in 2011 (including Creston Mascota) is expected to be 199,000 ounces of gold and approximately 2.2 million ounces of silver.
Due to the improved mill capacity and the increased underground ore reserve tonnage at Pinos Altos, the Company is evaluating alternatives with respect to increasing the underground mine capacity either through an additional production ramp or a production shaft. The study is expected to be completed near the end of 2011.
Exploration at Pinos Altos in 2011 is focusing on the Cerro Colorado zone (adjacent to the main Santo Nino zone, to the west), the satellite Creston Mascota, Cubiro and Bravo zones, and the Reyna de la Plata zone (parallel zone, north of Santo Nino). Further details of the exploration program at Pinos Altos will be available later this year.
Meadowbank – Back at Full Production Rates Following Fire
The 100% owned Meadowbank mine is located in Nunavut, northern Canada. Proven and probable gold reserves total 3.5 million ounces from 34.1 million tonnes grading 3.2 g/t. An additional 9.1 million tonnes grading 1.0 g/t (or 0.3 million ounces) of indicated gold resources are within the currently contemplated pit limits.
The Meadowbank mill processed an average of 6,985 tpd in the first quarter of 2011. No comparable period exists as the mine achieved commercial production in March 2010.
Minesite costs per tonne were C$93 in the first quarter. With commercial production achieved in March 2010, there is no complete comparable period in 2010. These costs were higher than the C$82 per tonne which is expected in 2011. The higher costs so far in 2011 are largely due to lower than planned throughput in the mill (approximately 14% lower than budget in the first quarter) largely due to the disruption caused by the fire of March 10, 2011 and unusually severe winter conditions.
The March 10 fire resulted in an expense of $3.1 million in the first quarter of 2011. The Company maintains various insurance policies that are expected to largely offset the associated costs going forward as claims are settled.
Payable production in the first quarter of 2011 was 61,737 ounces of gold at total cash costs per ounce of gold of $943. These costs are expected to decline dramatically in 2011 as throughput improves with the return of the full workforce in April 2011, and the commissioning of the permanent secondary crushing facility in the third quarter of 2011. The design rate of 8,500 tpd is expected to be achieved on a steady state basis at that time.
Payable production in 2011 is expected to be approximately 310,000 ounces of gold at total cash costs of approximately $700 per ounce as updated in the Company’s March 28, 2011 news release. Previous guidance was for production of 360,000 ounces of gold at total cash costs per ounce of $600.
Meliadine – Initial Gold Reserve Established, Gold Zones Expanding
In July 2010, Agnico-Eagle completed the acquisition of the Meliadine project near Rankin Inlet, Nunavut.
The Company’s initial reserve estimate is 2.6 million ounces of gold in probable reserves from 9.5 million tonnes grading 8.5 g/t. It is expected that this reserve will continue to grow significantly as the large gold resource is drilled extensively. Approximately $65 million is expected to be spent on Meliadine exploration and related infrastructure in 2011.
In addition to the initial gold reserve, the Meliadine project contains indicated gold resource of 8.8 million tonnes grading 5.2 g/t (or 1.5 million ounces). It also includes inferred gold resources of 11.8 million tonnes grading 6.9 g/t (or 2.6 million ounces).
Based on the exploration success and the growth in the deposit since it was acquired, the Company is evaluating the possibility of accelerating underground ramp development at Meliadine to facilitate further exploration and the eventual development of the growing deposit. The ramp study, and a reserve and resource update, are expected to be completed in the third quarter of 2011.
It is anticipated that the Board will consider a production decision in 2013, contingent on receiving all required permits.
Recent drilling has extended the Wesmeg zone (approximately 400 metres south of the main Tiriganiaq zone) at Meliadine. Drilling through March has confirmed the continuity of Wesmeg and extended it to the west. The deposit consists of a North Trend and a South Trend, each more than a kilometre long. Wesmeg is open at depth and in all directions and would likely be mined via open pit methods. Further detail is available in today’s separate exploration news release.
Depreciation Guidance
Agnico-Eagle expects 2011 amortization on its income statement to amount to $200 to $250 per reserve ounce. This amount was approximately $195 in 2010 and $151 in 2009.
Please see the Supplemental Data section of the Financial and Operating Database on the Company’s website for the adjusted plant, property and mine development totals by mine at December 31, 2010.
Pinos Altos Tour
Agnico-Eagle will be hosting a trip for equity analysts and buy-side investors on May 19, 2011 to Pinos Altos in northern Mexico. A charter plane will depart Toronto in the afternoon of May 18. After overnight in Chihuahua, small planes will take participants to site and back on May 19, with return to Toronto that evening. Interested parties should contact Adriana Trlin at [email protected], or 416-947-1212 x3747. Space is extremely limited. All presentation materials will also be posted on the Company’s website.
Meadowbank and Meliadine Tour
Agnico-Eagle will be hosting a trip for equity analysts and buy-side investors on June 28, 2011 to Meadowbank. The tour will include a project review of Meliadine while at the Meadowbank site. The tour will be a day trip via chartered airplane from Toronto. Interested parties should contact Adriana Trlin at [email protected], or 416-947-1212 x3747. All presentation materials will also be posted on the Company’s website.
Annual General Meeting
Friday April 29, 2011 at 11:00am Vanity Fair Ballroom Le Méridien King Edward Hotel 37 King Street East Toronto, ON M5C 1E9
Dividend Record and Payment Dates for the Remainder of 2011
Record Date Payment Date
| June 1 | June 15 |
| September 1 | September 15 |
| December 1 | December 15 |
Dividend Reinvestment Program
Please follow the link below for information on the Company’s dividend reinvestment program.
DividendReinvestmentPlan
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. The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales and maintains a corporate strategy based on increasing shareholders exposure to gold, on a per share basis. It has paid a cash dividend for 29 consecutive years. www.agnico-eagle.com SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS (thousands of United States dollars, except where noted, US GAAP basis, Unaudited) Three months ended March 31, 2011 2010 Gross mine profit (exclusive of amortization shown below) (Note 1)
| LaRonde .................................................................................................... | $48,983 | $45,387 |
| Goldex ....................................................................................................... | 40,333 | 26,423 |
| Lapa .......................................................................................................... | 19,178 | 21,273 |
| Kittila ......................................................................................................... | 27,831 | 11,470 |
| Pinos Altos (Note 2) ................................................................................... | 47,259 | 12,631 |
| Meadowbank ............................................................................................. | 29,917 | 2,171 |
| Total gross mine profit ............................................................................... | 213,501 | 119,355 |
| Amortization .............................................................................................. | 61,929 | 30,503 |
| Corporate ................................................................................................... | 74,210 | 47,578 |
| Income before tax ...................................................................................... | 77,362 | 41,274 |
| Tax provision ............................................................................................. | 32,098 | 18,942 |
| Net earnings ................................................................................... | $45,264 | $22,332 |
| Net earnings per share ..................................................................... | $0.27 | $0.14 |
| Operating cash flow .......................................................................... | $171,043 | $74,491 |
Realized price per sales volume (US$):
| Gold (per ounce) .................................................................................... | $1,400 | $1,111 |
| Silver (per ounce) ................................................................................... | $36.10 | $17.87 |
| Zinc (per tonne) ...................................................................................... | $2,509 | $2,235 |
| Copper (per tonne) ................................................................................. | $10,027 | $7,288 |
Payable production:
Gold (ounces)
| LaRonde ................................................................................................. | 36,893 | 45,036 |
| Goldex .................................................................................................... | 38,500 | 42,269 |
| Lapa ...................................................................................................... | 26,914 | 31,553 |
| Kittila ..................................................................................................... | 40,317 | 24,547 |
| Pinos Altos (Note 2) ............................................................................... | 48,001 | 26,228 |
| Meadowbank .......................................................................................... | 61,737 | 18,599 |
| Total gold (ounces) | 252,362 | 188,232 |
Silver (000s ounces)
| LaRonde ................................................................................................. | 680 | 875 |
| Pinos Altos .............................................................................................. | 406 | 222 |
| Meadowbank .......................................................................................... | 13 | 2 |
| Total silver (000s ounces) | 1,099 | 1,099 |
| Zinc (tonnes) .......................................................................................... | 11,941 | 14,224 |
| Copper (tonnes) ...................................................................................... | 817 | 1,052 |
Payable metal sold:
| Gold (ounces – LaRonde) ....................................................................... | 37,459 | 45,240 |
| Gold (ounces – Goldex) .......................................................................... | 41,895 | 37,863 |
| Gold (ounces – Lapa) ............................................................................. | 25,776 | 34,193 |
| Gold (ounces – Kittila) ............................................................................. | 40,698 | 30,674 |
| Gold (ounces – Pinos Altos) (Note 2) ...................................................... | 45,484 | 20,965 |
| Gold (ounces – Meadowbank) ................................................................ | 61,928 | 7,103 |
| Total gold (ounces) | 253,240 | 176,038 |
| Silver (000s ounces – LaRonde) ............................................................. | 679 | 775 |
| Silver (000s ounces – Pinos Altos) .......................................................... | 409 | 221 |
| Silver (000s ounces – Meadowbank) ...................................................... | 21 | — |
| Total silver (ounces) | 1,109 | 996 |
| Zinc (tonnes) .......................................................................................... | 8,302 | 14,529 |
| Copper (tonnes) ...................................................................................... | 820 | 1,047 |
Total cash costs per ounce of gold (Note 3,4):
| LaRonde .................................................................................................... | $(12) | $167 |
| Goldex ...................................................................................................... | $431 | $375 |
| Lapa ......................................................................................................... | $630 | $489 |
| Kittila ........................................................................................................ | $687 | $735 |
| Pinos Altos (Note 2) .................................................................................. | $312 | $405 |
| Meadowbank ............................................................................................. | $943 | 840 |
| Weighted average total cash costs per ounce ............................................. | $531 | $441 |
Note 1 Gross mine profit is calculated as total revenues from all metals, by mine, minus total production costs, by mine.
Note 2 Creston Mascota achieved commercial production as of March 1, 2011 and is considered a satellite pit to the Pinos Altos mine.
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 reconciliation to production costs, see Note 1 to the financial statements included herein. See also “Note Regarding Certain Measures of Performance”.
Note 4 Certain measures have been reclassified in prior periods to conform to the current periods’ presentation. The changes are immaterial in nature.
CONSOLIDATED BALANCE SHEETS (thousands of United States dollars, US GAAP basis)
(Unaudited)
As at As at March 31, 2011 December 31, 2010 ASSETS Current Cash and cash equivalents .................................................................................. $114,825 $104,645 Trade receivables ................................................................................................ 71,566 112,949 Inventories:
| Ore stockpiles ................................................................................................... | 63,297 | 67,764 |
| Concentrates .................................................................................................... | 60,193 | 50,332 |
| Supplies ........................................................................................................... | 160,107 | 149,647 |
| Other current assets ............................................................................................ | 194,557 | 188,885 |
| Fair value of derivative assets ................................................................................. | 2,036 | - |
| Total current assets ............................................................................................... | 666,581 | 674,222 |
| Other assets .......................................................................................................... | 58,396 | 61,502 |
| Future income and mining tax assets ..................................................................... | 2,615 | - |
| Goodwill.. .............................................................................................................. | 200,064 | 200,064 |
| Property, plant and mine development .................................................................. | 4,595,545 | 4,564,563 |
$5,523,201 $5,500,351 LIABILITIES AND SHAREHOLDERS' EQUITY Current
| Accounts payable and accrued liabilities ............................................................. | $168,504 | $170,967 |
| Dividends payable ............................................................................................... | 81,002 | 108,009 |
| Interest payable .................................................................................................. | 20,513 | 9,743 |
| Income taxes payable ......................................................................................... | 1,393 | 14,450 |
| Total current liabilities ............................................................................................ | 271,412 | 303,169 |
| Long term debt ...................................................................................................... | 600,000 | 650,000 |
| Fair value of derivative financial instruments .......................................................... | - | 142 |
| Reclamation provision and other liabilities .............................................................. | 151,303 | 145,536 |
| Future income and mining tax liabilities ................................................................. | 759,023 | 736,054 |
Shareholders' equity Common shares Authorized — unlimited
| Issued — 169,017,306 (December 31, 2010 — 168,763,496) ........................... | 3,090,202 | 3,078,217 |
| Stock options ........................................................................................................ | 95,115 | 78,554 |
| Warrants ............................................................................................................... | 24,858 | 24,858 |
| Contributed surplus ............................................................................................... | 15,166 | 15,166 |
| Retained earnings ................................................................................................. | 485,529 | 440,265 |
| Accumulated other comprehensive income .......................................................... | 30,593 | 28,390 |
| Total shareholders' equity ...................................................................................... | 3,741,463 | 3,665,450 |
$5,523,201 $5,500,351