Investor Relations Agnico -Eagle Reports Fourth Quarter and Full Year 2012 Results; Record Annual Production and Operating Cash Flows; Provides Three Year Production Guidance and Reserve and Resource Update
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 2012 RESULTS; RECORD ANNUAL PRODUCTION AND OPERATING CASH FLOWS;
PROVIDES THREE YEAR PRODUCTION GUIDANCE AND RESERVE AND RESOURCE UPDATE
Toronto (February 13, 2013) – Agnico-Eagle Mines Limited ("Agnico-Eagle" or the “Company”) (NYSE:AEM) (TSX:AEM) today reported a quarterly net income of $82.8 million, or $0.48 per share for the fourth quarter of 2012. This result includes a $16.5 million ($0.10 per share) gain on the sale of Queenston Mining Inc. shares and a non-cash foreign currency translation gain of $4.5 million ($0.03 per share). These items were partly offset by stock option expense of $7.1 million ($0.04 per share) and a $1.1 million ($0.01 per share) partial write-down of the Creston Mascota heap leach pad. Excluding these items would result in normalized net income of $69.9 million ($0.41 per share) for the fourth quarter of 2012. In the fourth quarter of 2011, the Company reported net quarterly loss of $601.4 million (loss of $3.53 per share), which included a $907.7 million impairment loss on the Meadowbank mine.
Fourth quarter 2012 cash provided by operating activities was $106.0 million ($175.0 million before changes in non-cash components of working capital), down from cash provided by operating activities of $132.0 million in the fourth quarter of 2011 ($179.2 million before changes in non-cash components of working capital), primarily due to larger increases in working capital related to inventory and accounts payable in 2012.
“Congratulations are due to all of our employees as our safety and operating performance company-wide was excellent during 2012. Targets were met, and in many cases, exceeded”, said Sean Boyd, President and Chief Executive Officer. “In 2013, we anticipate continuing our solid execution at the current operations and advancing construction on our three near-term growth projects, La India, Goldex and the LaRonde Extension. The new projects, combined with the forecast of higher grades at LaRonde are expected to result in growth of approximately 20% in our gold production from 2013 to 2015. The gold production growth is expected to result in improvements in the unit cost profile through 2015 as well.” added Mr. Boyd.
Fourth quarter and full year 2012 highlights include:
- Record annual gold production – record full year gold production of 1,043,811 ounces at total cash costs1 of $640 per ounce for the year, compared to guidance of 1,025,000 ounces at $660 per ounce
- Record annual operating cash flows – cash provided by operating activities up year over year, to $696 million, or $4.06 per share
- Goldex and La India construction according to plan - both projects expected to provide production growth in 2014
- Quarterly dividend up 10% to $0.22 per share - Company has now declared a dividend for 31 consecutive years
- Gold reserves, net of production, maintained at 18.7 million ounces at year end 2012 – inferred resources grow significantly at Kittila and Meliadine
- Kittila expansion approved – expected to add to production profile in the second half of 2015
Agnico-Eagle is pleased to announce that its Board of Directors has approved the payment of a quarterly cash dividend of $0.22 per common share. The next dividend will be paid on March 15, 2013 to shareholders of record as of March 1, 2013. Agnico-Eagle has now declared a cash dividend to its shareholders for 31 consecutive years.
For the full year 2012, the Company recorded net income of $310.9 million, or $1.82 per share. In 2011, Agnico-Eagle recorded a net loss of $568.9 million, or $3.36 per share (a $1.2 billion write-down of mining assets was recorded in 2011 following a re-evaluation of the mining plan at Meadowbank and the suspension of production from the GEZ deposit at Goldex). Compared with the prior year, 2012 earnings were positively affected by consistent performance at all operating mines and significant year over year improvement at Meadowbank.
For 2012, the Company realized a record amount of cash provided by operating activities of $696.0 million ($737.9 million before changes in non-cash components of working capital). This represents an increase over 2011, when cash provided by operating activities totaled $667.2 million ($705.1 million before changes in non-cash components of working capital). The increase was primarily due to significant improvement in cash flow generation from the Meadowbank mine, as well as continued strong performance at Pinos Altos. The overall improvement was in spite of significantly lower by-product revenues and the absence of production from the Goldex mine in 2012.
Payable gold production2 in the fourth quarter of 2012 was 236,535 ounces compared to 227,792 ounces in the fourth quarter of 2011. A detailed description of the production and cost performance by mine may be found later in this document.
Total cash costs for the fourth quarter of 2012 were $769 per ounce versus $671 per ounce for fourth quarter 2011. The increase in total cash costs per ounce in the fourth quarter of 2012 is mainly due to higher costs at LaRonde and Meadowbank and the temporary suspension of operations at Creston Mascota. At LaRonde, the ramp up of tonnage from the higher grade, deeper levels continues to be challenging due to heat and congestion in the mine. Higher total cash costs were realized at Meadowbank as the mine production was
1 Total cash costs per ounce is a non-GAAP measure. For a reconciliation to production costs, see Note 1 to the financial statements contained herein. See also “Note Regarding Certain Measures of Performance”. 2 Payable production of a mineral means the quantity of mineral produced during a period contained in products that are or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
from lower grade ore (as planned) during the quarter. The temporary suspension of the relatively low cost Creston Mascota heap leach operation in October of 2012 also negatively impacted total cash costs.
The Company’s payable gold production for the full year 2012 was a record 1,043,811 ounces at total cash costs per ounce of $640. This compares to the full year 2011 level of 985,460 ounces at total cash costs per ounce of $580 (which included 135,478 ounces from the low cost Goldex mine; excluding Goldex, 2011 total cash costs from currently operating mines were $609 per ounce). The significant improvement in gold production in 2012 was a result of strong operating results from all of the mines. The increase in total cash costs per ounce in 2012 was primarily due to the impact of lower byproduct credits at LaRonde and larger contribution to overall production from the higher cost Meadowbank mine, partly offset by better cost profiles at Meadowbank and Kittila, when compared to 2011.
Conference Call Tomorrow
The Company’s senior management will host a conference call on Thursday, February 14, 2013 at 11:00 AM (E.S.T.) to discuss financial and operating results.
Via Webcast:
A live audio webcast of the meeting will be available on the Company’s website homepage at www.agnico-eagle.com.
Via Telephone:
For those preferring to listen 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.
Replay archive:
Please dial 416-640-1917 or the Toll-free access number 877-289-8525, passcode 4568952#.
The conference call replay will expire on Friday, March 14, 2013.
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 $332.0 million at December 31, 2012, from the September 30, 2012 balance of $320.8 million. The Company drew on its bank facilities in the fourth quarter of 2012 during the normal course of inter-Company fund flows. The $30 million which was drawn was repaid in early 2013.
Capital expenditures in the fourth quarter of 2012 were $151.8 million including $30.3 million at La India, $24.0 million at LaRonde, $23.4 million at Meadowbank, $16.2 million at Kittila, $13.5 million at Meliadine, $9.1 million at Lapa and $7.3 million at Pinos Altos (including Creston Mascota). For the full year 2012, capital expenditures totaled $445.6 million.
With its 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 credit lines as of December 31, 2012 were approximately $1.2 billion.
Three Year Plan Outlines Further Production Growth
The Company is announcing its production and cost guidance for the three-year period of 2013 through 2015.
In 2013, payable gold production is expected to be within the range of 970,000 ounces to 1,010,000 ounces. Total cash costs per ounce in 2013 are expected to be in the range of $700 to $750.
Approximate Impact on Total Cash Costs per Ounce 2013
$1 / oz change in price of Silver $4 $200 / dry metric tonne change in price of Copper $1 $100 / dry metric tonne change in price of Zinc $2 1% change in C$/US$ $7 1% change in US$/Euro $1 1% change in US$/MXP $1
During 2013, several factors are expected to have a positive impact on production in the second half of the year. At Creston Mascota, stacking of ore has resumed, and the Company expects to resume production from the heap leach in the second quarter, with full production rates likely to be achieved by year end. At LaRonde, additional cooling capacity, expected to be installed in the fourth quarter of 2013, is anticipated to have a positive impact on operating flexibility and production at the mine. Furthermore, as LaRonde ramps up production at the deeper portion of the mine, the Company expects its gold grade to improve gradually over the course of the year. In addition, gold grades at Meadowbank are expected to trend higher in the fourth quarter. As a result, the second half of the year is likely to make a larger contribution to the overall 2013 gold production forecast.
In 2014, Agnico-Eagle expects to have significant production growth from LaRonde (due to anticipated improving grades), Goldex (due to the planned start up in the second quarter) and La India (due to the planned second quarter start up). The Company expects payable gold production to be in the range of 1,100,000 ounces to 1,140,000 ounces.
In 2015, further production growth is expected from LaRonde and Pinos Altos (due to anticipated improving grades) with payable gold production expected to exceed 1,200,000 ounces.
2014 2015
| Estimated Payable | 2013 Estimated | Estimated Estimated | ||
| Gold Production | 2012 Actual | Mid Point | Mid Point Mid Point | |
| Meadowbank | 366,030 | 360,000 | 367,000 | 350,000 |
| LaRonde | 160,875 | 177,000 | 215,000 | 250,000 |
| Kittila | 175,878 | 165,000 | 165,000 | 160,000 |
| Lapa | 106,191 | 97,000 | 96,000 | 65,000 |
| Pinos Altos | 183,662 | 159,000 | 136,000 | 161,000 |
| Creston Mascota | 51,175 | 32,000 | 52,000 | 55,000 |
| La India | 40,000 | 81,000 | ||
| Goldex | 49,000 | 85,000 | ||
| Total Gold Production | 1,043,811 | 990,000 | 1,120,000 1,207,000 |
Total cash costs per ounce 2012 Actual 2013 Estimated
| LaRonde | $569 | $650 |
| Lapa | 697 | 840 |
| Kittila | 565 | 660 |
| Pinos Altos | 276 | 300 |
| Creston Mascota | 326 | 300 |
| Meadowbank | 913 | 985 |
$640 $725
For 2014 and 2015, total cash costs per ounce are expected to be near the bottom of the range forecast for 2013, or approximately $700 per ounce.
In an effort to provide more transparency into costs, Agnico-Eagle is providing guidance with respect to its all-in sustaining costs3 for 2013. All-in sustaining costs are calculated as:
Cash costs (net of by-product credits) + sustaining capital + corporate, general and administrative expense (net of stock option expense) + exploration expenditures.
To reflect the full cost of gold production from current operations, development capital for new projects is not included in the calculation. All-in sustaining costs for 2013 are expected to be approximately $1,075 per ounce.
In 2014, an updated study is expected to be completed regarding the large Meliadine project located in Nunavut, Canada. While first gold production is unlikely before 2018, this project has the potential to be Agnico-Eagle’s largest single gold producer. Project permitting is currently proceeding on schedule.
3 All-in Sustaining cost is a non-GAAP measure. The Company’s methodology for calculating all-in sustaining costs may not be similar to methodology used by other gold producers that disclose all-in sustaining cost. The Company may change the methodology it uses to calculate all-in sustaining costs in the future, including in circumstances where the World Gold Council adopts formal industry guidelines regarding this measure. 4 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.
Improvement In Three Year Gold Production Forecast
Since the prior three-year production guidance of February 16, 2012, there have been a number of key operating developments, resulting in an improvement to the overall threeyear production profile. Descriptions of the major factors that contributed to these changes are detailed below.
| LaRonde Forecast | 2012 | 2013 | 2014 | 2015 |
| As of Feb’12 (oz) | 157,500 | 220,000 | 280,000 | n.a. |
| Current (oz) | 160,875 (actual) | 177,000 | 215,000 | 250,000 |
| LaRonde 2013 | Ore Milled (‘000 tonnes) | Gold (g/t), Mill Recovery | Silver (g/t), Mill Recovery | Zinc (%), Mill Recovery | Copper (%), Mill Recovery | Minesite Cost Per Tonne4 |
|---|---|---|---|---|---|---|
| 2,400 | 2.5, 92% | 33, 83% | 1.4, 84% | 0.23, 80% | C$96 |
At LaRonde, challenges associated with heat and congestion in the deeper part of the mine, have effectively delayed the ramp up of production as previously outlined in February 2012. Despite the delay, overall gold production and throughput at LaRonde is expected to remain unchanged over the life of mine.
| Lapa Forecast | 2012 | 2013 | 2014 | 2015 |
| As of Feb’12 (oz) | 100,000 | 100,000 | 105,000 | n.a. |
| Current (oz) | 106,191 (actual) | 97,000 | 96,000 | 65,000 |
| Lapa 2013 | Ore Milled (‘000 tonnes) | Gold (g/t) | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 615 | 6.2 | 79% | C$130 |
At Lapa, 2013 and 2014 are the last two years of full production based on the current life of mine. In 2015, production is expected to exhibit a decline from the current levels. Additional exploration results expected in 2013, and could have the potential to extend the mine life at Lapa into 2016.
| Kittila Forecast | 2012 | 2013 | 2014 | 2015 |
| As of Feb’12 (oz) | 155,000 | 155,000 | 170,000 | n.a. |
| Current (oz) | 175,878 (actual) | 165,000 | 165,000 | 160,000 |
| Kittila 2013 | Ore Milled (‘000 tonnes) | Gold (g/t), | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 1,050 | 5.6 | 88% | €80 |
At Kittila, estimated production over the next three years is essentially unchanged from what was previously disclosed, but lower than the 175,878 ounces produced in 2012 as gold grades are expected to gradually decline towards the average reserve grade. Minesite costs per tonne in 2013 are anticipated to be higher than in 2012 as the mine is now processing ore entirely from the relatively higher cost underground portions (the open pit portions of the mine were depleted in the fourth quarter of 2012).
The Company’s Board of Directors has approved a 750 tonne per day expansion at Kittila, which is expected to increase the throughput capacity at the mine to 3,750 tonnes per day starting in the second half of 2015. The current guidance for 2015 at Kittila includes approximately 10,000 ounces resulting from this expansion. Additional details on the expansion can be found in the capital expenditures section of this news release.
| Meadowbank Forecast | 2012 | 2013 | 2014 | 2015 |
| As of Feb’12 (oz) | 295,000 | 305,000 | 310,000 | n.a. |
| Current (oz) | 366,030 (actual) | 360,000 | 367,000 | 350,000 |
| Meadowbank 2013 | Ore Milled (‘000 tonnes) | Gold (g/t), | Mill Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 4,100 | 2.9 | 94% | C$88 |
At Meadowbank, the new forecast annual production is considerably higher than previously stated as a result of the improved operating performance achieved in 2012. In particular, the Company expects throughput of approximately 11,000 tonnes per day to be sustainable. Following two difficult startup years, Meadowbank exceeded expectations in 2012 primarily due to improved operating efficiencies, higher sustained throughput, better equipment availability and improvements in dilution. The currently expected mine life now extends partially into 2018. This is a slight extension of the previously disclosed mine life, in spite of the plan for much higher throughput rates, due to optimization of the mine plan largely at the Vault orebody.
| Pinos Altos Forecast | 2012 | 2013 | 2014 | 2015 |
| As of Feb’12 (oz) | 149,000 | 143,000 | 137,000 | n.a. |
| Current (oz) | 183,662 (actual) | 159,000 | 136,000 | 161,000 |
| Pinos Altos 2013 | Total Ore (‘000 tonnes) | Gold (g/t) Recovery | Silver (g/t) Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 2,570 | 2.1, 89% | 64, 41% | $47 |
At Pinos Altos, the new production forecast for the three year period 2013-2015 is higher than previously estimated, as a result of the strong operating performance in 2012 and higher mill throughput. Year over year variances in guidance for 2013 and 2014 are attributable to mine sequence and ore grade. In 2015, an increase in mill throughput is anticipated as the underground shaft project is expected to result in improved production.
| Creston Mascota Forecast | 2012 | 2013 | 2014 | 2015 |
| As of Feb’12 (oz) | 56,000 | 67,000 | 53,000 | n.a. |
| Current (oz) | 51,175 (actual) | 32,000 | 52,000 | 55,000 |
| Creston Mascota 2013 | Total Ore (‘000 tonnes) | Gold (g/t) Recovery | Silver (g/t) Recovery | Minesite Cost Per Tonne |
|---|---|---|---|---|
| 1,580 | 1.3, 49% | 18, 4% | $12 |
The Company expects production from Phase 2 of the Creston Mascota heap leach to commence in the second quarter of 2013 and to ramp up over the remainder of the year. The production forecast for 2013 reflects the expected buildup of inventory on the heap leach pad required before steady state is achieved. In 2014 and 2015, the production forecast for Creston Mascota reflects normal steady state operations.
| La India | 2013 | 2014 | 2015 |
| Current (oz) | n.a. | 40,000 | 81,000 |
At the La India project, construction continues with commercial production now anticipated in the second quarter of 2014, or approximately three months ahead of the original plan. On average, the mine is expected to produce approximately 90,000 ounces of gold annually at total cash costs per ounce of approximately $500 over a mine life of approximately 9 years.
| Goldex | 2013 | 2014 | 2015 |
| Current (oz) | n.a | 49,000 | 85,000 |
The Goldex mine is expected to commence operations from the M and E zones starting in the second quarter of 2014. On an annualized basis, Goldex is expected to produce approximately 80,000 ounces of gold at total cash costs of approximately $900 per ounce over a mine life of approximately three to four years. Exploration on several other satellite zones, including the deeper D zone has the potential to extend the mine’s life.
New Capital Allocated to Growth Projects in 2013
The Company’s balance sheet is well positioned to fund the Company’s growth initiatives. At current spot input prices, Agnico-Eagle expects to generate free cash flow in 2013, after capital expenditures which are expected to total approximately $596 million in 2013. The Company’s goal is to increase its dividend to shareholders, over time, on a sustainable basis.
The estimated capital expenditures for 2013 include approximately $201 million of sustaining capital at the mines and $357 million on new projects, as set out in the table below. Additionally, approximately $38 million is expected to be spent on capitalized exploration.
The Company’s Board of Directors has approved a 750 tonne per day expansion at Kittila, which is expected to increase the throughput capacity at the mine to 3,750 tonnes per day starting in the second half of 2015. The total expenditure on the project is expected to be approximately $103 million over a three-year period, with $25 million expected to be spent in 2013. The after-tax internal rate of return is expected to be approximately 23%. The expansion is expected improve unit costs and to offset a gradual reduction in realized grade towards the reserve grade over the next several years.
| Estimated 2013 Capital Expenditures Sustaining Development Capitalized ($, millions) Projects Exploration | Expensed Exploration |
|---|---|
| LaRonde 61 30 1 Goldex 63 4 Lapa 19 2 Meadowbank 40 39 4 Kittila 39 34 6 Pinos Altos 29 33 5 La India 92 2 Meliadine 59 14 Creston Mascota 13 Tarachi Project Evaluation Other 7 Total $201 $357 $38 | 1 1 1 4 2 17 6 18 21 |
| $71 |
Grand Total Capital Expenditures $596
Projects Not Yet Considered in Production and Capital Investment Plan
The current three year plan sets out estimated annual gold production which rises each year through 2015 to more than 1.2 million ounces. However, these forecasts do not include the expansion and development projects set out below, which have not yet been approved for construction:
Kittila – Production Shaft
A study is underway that considers the construction of a production shaft at Kittila. This shaft would provide operating cost savings and sustain long-term production at higher throughput levels from multiple zones, especially at depths below 700 metres.
Meliadine – High Grade Project Continues To Grow
The Meliadine project, acquired in 2010, is one of Agnico-Eagle’s largest gold deposits in terms of reserves and resources. It is currently in the permitting phase with first production possible by 2018 and capital expenditures expected to be distributed over the 2013 to 2018 period. In 2014, the Company expects an updated study regarding building a medium sized operation on this multi-million ounce gold deposit, Meliadine is considered to be a long-term asset for the Company.
While the Meliadine project has not yet been approved for construction, estimated company-wide capital expenditures of approximately $600 million per year, over the next five or six years, does include estimates for Meliadine, and several other projects which are yet to be approved.
Gold Reserves Maintained in 2012 and Improving in Quality
At year-end 2012, the Company’s proven and probable gold reserves totaled 18.7 million ounces, essentially unchanged from 2011 levels. The Company’s year-end 2012 gold reserves, net of the 1,043,811 ounces of gold production in 2012 (or 1,146,727 ounces before mill recovery), are set out below:
| Gold Reserves By Mine | Proven & Probable Reserve (000s ounces) | Average Gold Reserve Grade (g/t) | ||||
|---|---|---|---|---|---|---|
| 2012 | 2011 | Change | 2012 | 2011 | Change | |
| LaRonde Lapa Kittila Pinos Altos Meadowbank Meliadine Bousquet | 4,206 395 4,783 2,714 2,294 2,987 178 | 4,700 501 5,177 3,103 2,201 2,877 191 | (494) (106) (394) (389) 93 110 (13) | 4.54 5.95 4.49 2.21 2.82 6.98 1.88 | 4.40 6.54 4.66 2.06 2.79 7.18 2.02 | 0.14 (0.59) (0.17) 0.15 0.03 (0.20) (0.14) |
| Subtotal | 17,556 | 18,750 | (1,194) | 3.80 | 3.71 | 0.09 |
| New Reserves Goldex 349 1.55 La India 776 0.72 | ||||||
| Total Reserves | 18,681 | 18,750 | (69) | 3.16 |
Amounts presented in the table and in this press release have been rounded to the nearest thousand. See Detailed Mineral Reserve and Resource Data (as at December 31, 2012) set out at the end of this news release for more details.
The Company continues to focus on improving the quality of its reserve base. In the case of long life assets, like LaRonde, Pinos Altos and Kittila, a higher cut-off grade for calculating the reserves was used than at assets with short lives. This decision, all else being equal, results in fewer tonnes and ounces, but higher grades and higher operating margins on extraction. At shorter life assets, the cut-off grades and subsequent mine plans are focused on maximizing operating cash flow. The gold price assumptions used in generating the cutoff grades are shown with the detailed reserve and resource tables at the end of this news release.
Due to ongoing industry-wide cost pressure, combined with more conservative assumptions at some mines, some assets had reserve declines greater than those from depletion resulting from 2012 production. Conversely, Meadowbank reserves grew from conversion of resources at the Vault deposit.
It is the Company’s goal to maintain its gold reserves to between 15 and 20 times its annual gold production rate. Currently, this amounts to approximately 18 times its annual production rate.
In addition to proven and probable gold reserves of 18.7 million ounces, Agnico-Eagle’s byproduct reserves include approximately 96 million ounces of silver, 220,000 tonnes of zinc and 73,000 tonnes of copper.
For a 10% change in the gold price (leaving all other assumptions unchanged), there would be an estimated 4% change in proven and probable gold reserves.
Gold Resources Grow at Core Properties
Exploration drilling during 2012 resulted in more than two million ounces of gold being discovered. As noted above, approximately one million ounces of gold were converted from the resource category into the reserve category, essentially replacing the ore that was mined during 2012.
The Company’s measured and indicated resources now total approximately 141 million tonnes grading 1.79 g/t, or 8.1 million ounces of gold.
The Company’s inferred resources now total approximately 200 million tonnes grading 1.90 g/t, or 12.2 million ounces of gold.
The distribution of these resources by asset are presented in the following table.
December 31, 2012 Resources
Measured & Indicated Inferred Resources* Resources* (Au koz) (Au koz)
| LaRonde | 329 | 1,425 |
| Lapa | 147 | 201 |
| Meadowbank | 828 | 440 |
| Kittila | 669 | 2,366 |
| Pinos Altos | 878 | 942 |
| La India | 582 | 1,005 |
| Meliadine | 2,186 | 2,932 |
| Goldex | 1,611 | 1,690 |
| Bousquet | 844 | 740 |
| Other | 31 | 420 |
| Total | 8,104 | 12,159 |
*For full details including tonnages and grade, see the Detailed Mineral Reserve and Resource Data table in this news release Exploration drilling was most successful at the Meliadine project, where more than one million ounces of gold was discovered. In the indicated category, approximately 0.5 million ounces of gold resource was added largely through conversion from inferred. In addition to the ounces that were converted, approximately 0.5 million ounces of gold was also added in the inferred resource category.
Including the 2012 drilling program, Meliadine’s Normeg deposit (discovered by Agnico- Eagle in 2012) now hosts 2.5 million tonnes grading 8.0 g/t, or 0.66 million ounces of gold resource in the inferred category. This deposit, which is approximately 100 metres from the main Tiriganiaq deposit, has the potential to enhance the Meliadine project economics as it continues to be drilled off.
At Tarachi, indicated resources now total approximately 450,000 ounces (up 15%, or 60,000 ounces year over year) from 34.5 million tonnes grading 0.41 g/t. Inferred resources at Tarachi now total nearly 900,000 ounces (up 326%, or approximately 700,000 ounces, when compared to last year’s total) from 72.0 million tonnes grading 0.38 g/t. Based on this ongoing drilling success, the Company has initiated a metallurgical testing program on Tarachi composite samples.
At Kittila, the Rimpi deposit, located to the north of the main Suuri deposit, continues to grow. In 2012, the proven and probable reserves grew by more than 700,000 ounces. The deposit now contains 6,847,474 tonnes grading 4.92 g/t, or 1,083,712 ounces of gold. The deposit remains open at depth.
2013 Exploration Program and Budget
The 2013 exploration program will be primarily focused on accelerating the drilling programs at Kittila, Meliadine and La India/Tarachi, which is expected to convert resources and extend the regional and mine site potential. These programs could form part of the feasibility studies at each of these properties, which represent significant upside potential to the Company's near term growth production profile. In 2013, Agnico-Eagle's exploration budget is approximately $92 million, with approximately 70% expected to be spent on minesite and advanced project exploration.
Operating Review
LaRonde Mine – Ramp Up At Lower Mine Continues; Heat And Congestion To Ease in 2013
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
The LaRonde mill processed an average of 6,379 tonnes per day (“tpd”) in the fourth quarter of 2012, compared with an average of 6,767 tpd in the corresponding period of 2011. Milling performance for the full year 2012 was approximately 6,444 tpd versus 6,592 tpd in 2011. The lower throughput was largely due to the transition to ore sourced from the lower mine, and previously mentioned challenges with heat and congestion at the deeper levels. These issues are expected to be largely mitigated by the installation of additional