(All amounts expressed in U.S. dollars unless otherwise
noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, July 28, 2021 /PRNewswire/ - Agnico Eagle
Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the
"Company") today reported quarterly net income of $189.6 million, or net income of
$0.78 per share, for the second
quarter of 2021. This result includes non-cash mark-to-market
gains on warrants of $15.9 million
($0.07 per share), foreign currency
translation gains on deferred tax liabilities of $9.3 million ($0.04
per share), derivative gains on financial instruments of
$1.8 million ($0.01 per share), non-cash foreign currency
translation losses of $2.4 million
($0.01 per share) and various other
adjustment losses of $2.7 million
($0.02 per share). Excluding
these items would result in adjusted net income1 of
$167.7 million or $0.69 per share for the second quarter of
2021. For the second quarter of 2020, the Company reported
net income of $105.3 million or net
income of $0.44 per share.
Included in the second quarter of 2021 net income, and not
adjusted above, are non-cash stock option expense of $3.9 million ($0.02
per share) and workforce costs of employees affected by the
COVID-19 pandemic (primarily Nunavut-based) of $2.5
million ($0.01 per share).
In the first six months of 2021, the Company reported net income
of $325.7 million, or net income of
$1.34 per share. This compares
with the first six months of 2020, when net income was $83.7 million, or net income of $0.35 per share.
The increase in net income in the second quarter of 2021,
compared to the prior-year period, is primarily due to higher mine
operating margins (from higher sales volumes and higher realized
metal prices) and lower losses in non-cash items related to
mark-to-market adjustments on financial instruments owned by the
Company, partially offset by higher amortization of property, plant
and mine development due to higher production volumes and the
contribution of the Hope Bay mine, higher exploration expenses, and
higher income and mining taxes driven by higher operating margins.
In the second quarter of 2020, gold production and sales were
negatively affected by COVID-19 related reductions in mining
activities.
_____________________________
|
1 Adjusted net income is a non-GAAP
measure. For a discussion regarding the Company's use of
non-GAAP measures, please see "Note Regarding Certain Measures of
Performance".
|
The increase in net income in the first six months of 2021,
compared to the prior-year period, is primarily due to the reasons
described above partially offset by higher general and
administration costs related to a health care donation of
$8.0 million spread over several
years that was expensed in the first quarter of 2021.
In the second quarter of 2021, cash provided by operating
activities was $406.9 million
($432.2 million before changes in
non-cash components of working capital), compared to the second
quarter of 2020 when cash provided by operating activities was
$162.6 million ($185.2 million before changes in non-cash
components of working capital). The cash provided by
operating activities in the second quarter of 2021 resulted in
another strong quarter of free cash-flow2
generation.
In the first six months of 2021, cash provided by operating
activities was $763.3 million
($847.4 million before changes in
non-cash components of working capital), compared to the first six
months of 2020 when cash provided by operating activities was
$326.0 million ($389.9 million before changes in non-cash
components of working capital).
The increase in cash provided by operating activities in the
second quarter of 2021, compared to the prior-year period, is
primarily due to an increase in mine operating margins, partially
offset by higher cash taxes related to the higher mine operating
margins. The higher mine operating margins were primarily a
result of strong operating performance from the Company's key mines
in the second quarter of 2021, and higher average realized metal
prices. In the second quarter of 2020, gold production was
negatively affected by COVID-19 related reductions in mining
activities at seven of the Company's eight mines.
The increase in cash provided by operating activities in the
first six months of 2021, compared to the prior-year period, is
primarily due to an increase in mine operating margins due to the
reasons described above, partially offset by higher cash taxes
related to the higher mine operating margins and payments for
deferred taxes related to the 2020 tax year in the first quarter of
2021.
_________________________
|
2 Free cash flow is a non-GAAP
measure. For a discussion regarding the Company's use of
non-GAAP measures, please see "Note Regarding Certain Measures of
Performance".
|
"In the second quarter of 2021, the Company posted record safety
performance with solid operational results which resulted in
another strong quarter of cash flow generation. The Company
remains on track to hit its production and cost guidance for 2021
and we expect to see growing gold output in the second half of the
year, which should lead to continued strong cash flow generation in
2021," said Sean Boyd, Agnico
Eagle's Chief Executive Officer. "Our sound operational
platform and stable financial position has given us the flexibility
to increase our exploration spending in 2021, and advance our
pipeline of development projects, which is expected to provide
additional shareholder value in the coming months and years," added
Mr. Boyd.
Second quarter of 2021 highlights include:
- Strong operating results and record safety performance in
the second quarter of 2021 – Payable gold
production3 was 500,698 ounces (excluding 25,308 ounces
of payable gold production at Hope Bay, and including 9,053 ounces
and 348 ounces of pre-commercial production of gold at the
Tiriganiaq open pit at Meliadine and Amaruq underground project,
respectively) at production costs per ounce of $834, total cash costs per ounce4 of
$739 and all-in sustaining costs
("AISC") per ounce5 of $1,021. Including Hope Bay, payable gold
production in the second quarter of 2021 was 526,006 ounces at
production costs per ounce of $827,
total cash costs per ounce of $748
and AISC per ounce of $1,037.
Production costs per ounce, total cash costs per ounce and AISC per
ounce exclude the pre-commercial production of gold at Tiriganiaq
and Amaruq underground
- Operating results positively affected by better than
expected maintenance performance and higher than forecast
production at the LaRonde Complex and Meliadine mine – In the
second quarter of 2021, scheduled maintenance programs were
performed at LaRonde, Goldex, Meliadine, Amaruq and Kittila. In all
instances, the maintenance programs went better than planned,
allowing for a prompt resumption of operations at all five mines.
In the second quarter of 2021, production was also positively
affected by higher than forecast tonnage and grade at LaRonde, and
an 8% increase in forecast grades at Meliadine. In May 2021, the Meliadine mine established new
monthly records for mill throughput (5,178 tonnes-per-day ("tpd"))
and gold production (35,810 ounces)
- Reintegration of Nunavummiut workforce underway at Meliadine
and Meadowbank mines – At the end of June 2021, the Company began the gradual
reintegration of the local workforce at two of its Nunavut operations, following consultation
with local government and health authorities. The Nunavummiut
workforce is expected to be fully reintegrated by the end of the
third quarter of 2021, which is expected to result in cost savings
of approximately $4 million per
quarter (before tax)
- Production and cost guidance maintained for 2021 –
Expected gold production in 2021 is unchanged at approximately
2,047,500 ounces, while total cash costs per ounce and AISC per
ounce continue to be forecast in the range of $700 to $750 and
$950 to $1,000, respectively. Estimated payable gold
production and costs for 2021 exclude any contribution from Hope
Bay. Quarterly production guidance for Hope Bay is unchanged at
approximately 18,000 to 20,000 ounces of gold at total cash costs
per ounce of $950 to $975 and AISC per ounce of $1,525 to $1,575
- Capital expenditures for 2021 remain unchanged – Total
capital expenditures for 2021 are still estimated to be
approximately $803.0 million. Capital
spending levels in the first half of 2021 were lower than forecast
largely due to the timing of expenditures. Capital spending is
expected to return to more normalized levels over the balance of
the year
- Cost inflation expected to be minimal in
2021 – With rising prices for many commodities, cost
pressures are gradually being pushed downstream and are starting to
be reflected in the prices for certain goods and services used
by the Company. Despite the inflationary pressures faced
year-to-date, the Company is expected to remain on track
to achieve its 2021 cost guidance on the back of a number of
collaborative efforts and initiatives. In addition, the Company
does not anticipate any abnormal impact on labour costs as a result
of wage inflation, other than contract exploration drilling and
other select contractor groups at this time
- Demonstrating Strong ESG Performance – In the second
quarter of 2021, the Company registered its best quarterly safety
performance in its 64-year history. In an effort to reduce its
long-term carbon footprint, the Company signed a memorandum of
understanding in July 2021 with the
consortium of Tugliq Energy Corp. and Hiqiniq Energy Corporation (a
wholly-owned subsidiary of Kitikmeot Corporation) to jointly work
to develop a renewable energy plan for the Hope Bay project. For
the second consecutive year, the Company received a Towards
Sustainable Mining® award from the Mining Association of
Canada to honour the Company's
innovative community development work at Pinos Altos which helped 300 families in
Mexico gain access to clean,
sustainable drinking water
- Odyssey project development and construction on target –
Ramp development is advancing ahead of schedule and at lower unit
costs; the first underground exploration bay is complete; the shaft
collar (30 metres) was excavated and the concrete lining installed;
the head frame foundations are in progress and the head frame
construction is expected to start in the fourth quarter of 2021.
All surface construction activities and the purchase of long lead
items are on target; shaft sinking is expected to resume in
the second half of 2022. Underground exploration drilling
will target the upper levels of the Odyssey South Zone and the
Internal Zones. Surface drilling is ongoing to infill and expand
the East Gouldie Zone
- Drilling confirms extension of mineralization at
Pinos Altos and La India camps
– Drilling at Cubiro and Pinos Altos Deep confirms and extends
high-grade gold mineralization laterally and at depth; infill and
step-out drilling confirms and extends the Chipriona sulphide
deposit near surface
- Positive exploration results at several minesites
and projects in the first half of 2021 – Highlights
include discovery of a new mineralized horizon 400 metres south of
the East Gouldie deposit; additional high-grade gold-copper in the
footwall zone at Upper Beaver in Kirkland
Lake; exploration at Hope Bay confirmed the expansion
potential of the Doris and Madrid
deposits; and drilling at Kittila yielded the deepest ore grade
intersection at the mine. For more information on the latest
results see the Company's news release dated July 8, 2021
- A quarterly dividend of $0.35
per share has been declared
______________________
|
3 Payable
production of a mineral means the quantity of a mineral produced
during a period contained in products that have been 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.
|
4 Total
cash costs per ounce is a non-GAAP measure and, unless otherwise
specified, is reported on a by-product basis. For a
reconciliation to production costs and for total cash costs on a
co-product basis, see "Reconciliation of Non-GAAP Financial
Performance Measures" below. See also "Note Regarding Certain
Measures of Performance".
|
5 AISC per
ounce is a non-GAAP measure and, unless otherwise specified, is
reported on a by-product basis. For a reconciliation to
production costs and for all-in sustaining costs on a co-product
basis, see "Reconciliation of Non-GAAP Financial Performance
Measures" below. See also "Note Regarding Certain Measures of
Performance".
|
Second Quarter 2021 Financial and Production
Highlights
In the second quarter of 2021, the Company's payable gold
production was 500,698 ounces (excluding 25,308 ounces of payable
gold production at Hope Bay, and including 9,053 ounces and 348
ounces of pre-commercial production of gold at the Tiriganiaq open
pit at Meliadine and Amaruq underground project,
respectively). This compares to quarterly payable gold
production of 331,064 ounces in the prior-year period (which
included 2,651 ounces of pre-commercial production of gold at the
Barnat deposit at Canadian Malartic). Including the Hope Bay
mine, the Company's quarterly gold production was 526,006 ounces in
the second quarter of 2021.
In the first six months of 2021, the Company's payable gold
production was a record 1,005,243 ounces (excluding 37,567 ounces
of payable gold production at Hope Bay, and including 17,176 ounces
and 348 ounces of pre-commercial production of gold at the
Tiriganiaq open pit at Meliadine and Amaruq underground project,
respectively). This compares to payable gold production of
742,430 ounces in the prior-year period (which included 5,625
ounces of pre-commercial production of gold at the Barnat deposit
at Canadian Malartic). Including the Hope Bay mine, the
Company's payable gold production was 1,042,810 ounces in the first
six months of 2021.
The higher gold production in the second quarter of 2021 and the
first six months of 2021, when compared to the prior-year periods,
was primarily due to strong performance at the Company's key mines,
including higher than forecast tonnage and grade at the LaRonde
Complex and higher than expected grade at the Meliadine mine,
partially offset by lower production at La India related to water
conservation efforts and at Creston Mascota where only residual
leaching remains. In the second quarter of 2020 and the first
six months of 2020, gold production was negatively affected by
COVID-19 related reductions in mining activities which impacted
seven of the Company's eight operations. A detailed
description of the production at each mine is set out below.
Production costs per ounce in the second quarter of 2021 were
$834 (excluding the Hope Bay mine),
compared to $854 in the prior-year
period. Total cash costs per ounce in the second quarter of
2021 were $739 (excluding the Hope
Bay mine), compared to $825 in the
prior-year period. Including the Hope Bay mine, production
costs per ounce were $827 and total
cash costs per ounce were $748 in the
second quarter of 2021.
Production costs per ounce in the first six months of 2021 were
$808 (excluding the Hope Bay mine),
compared to $864 in the prior-year
period. Total cash costs per ounce in the first six months of
2021 were $734 (excluding the Hope
Bay mine), compared to $832 in the
prior-year period. Including the Hope Bay mine, production
costs per ounce were $819 and total
cash costs per ounce were $741 in the
first six months of 2021.
In the second quarter and first six months of 2021, production
costs per ounce decreased when compared to the prior-year periods
primarily due to higher gold production and lower costs per tonne
at the Meadowbank Complex and Meliadine mine, partially offset by
the strengthening of the Canadian dollar against the U.S.
dollar. In the second quarter and first six months of 2021,
total cash costs per ounce decreased when compared to the
prior-year periods primarily due to higher gold production, higher
by-product revenues from higher realized metal prices and higher
sales volumes and lower minesite costs per tonne at the Meadowbank
Complex and Meliadine mine, partially offset by the strengthening
of the Canadian dollar against the U.S. dollar.
AISC per ounce in the second quarter of 2021 were $1,021 (excluding the Hope Bay mine), compared to
$1,142 in the prior-year
period. Including the Hope Bay mine, AISC per ounce were
$1,037 in the second quarter of
2021.
AISC per ounce in the first six months of 2021 were $1,008 (excluding the Hope Bay mine), compared to
$1,118 in the prior-year
period. Including the Hope Bay mine, AISC per ounce were
$1,022 in the first six months of
2021.
AISC in the second quarter and first six months of 2021
decreased when compared to the prior-year periods primarily due to
lower total cash costs per ounce, partially offset by higher
sustaining capital expenditures at the LaRonde Complex,
Canadian Malartic mine and Goldex mine related to the temporary
suspension of activities due to COVID-19 in the prior-year
periods.
Cash Position – Strong Financial Flexibility
Cash and cash equivalents and short-term investments increased
to $280.9 million at June 30,
2021, from the March 31, 2021 balance of $132.0 million, primarily due to the strong free
cash flow generation in the quarter. As of June 30, 2021, the outstanding balance on the
Company's unsecured revolving bank credit facility was nil, and
available liquidity under this facility was approximately
$1.2 billion, not including the
uncommitted $300 million accordion
feature.
Approximately 54% of the Company's remaining 2021 estimated
Canadian dollar exposure is hedged at an average floor price above
1.27 C$/US$. Approximately 50%
of the Company's remaining 2021 estimated Mexican peso exposure is
hedged at an average floor price above 20.75
MXP/US$. Approximately 11% of the Company's remaining
2021 estimated Euro exposure is hedged at an average floor price of
approximately 1.20 US$/EUR. The
Company's full year 2021 cost guidance is based on assumed exchange
rates of 1.30 C$/US$, 20.00 MXP/US$ and 1.20
US$/EUR.
Approximately 50% of the Company's diesel exposure relating to
its Nunavut operations (excluding
Hope Bay) for 2021 is hedged at an average floor price below
$0.45 per litre, which is lower than
the 2021 cost guidance assumption of $0.50 per litre (excluding transportation
costs). These hedges will offset a portion of the
expense related to the 2021 sealift diesel purchases, which
commenced in July.
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs.
Capital Expenditures
Total capital expenditures (including sustaining capital) in the
second quarter of 2021 were $209.3
million (excluding Hope Bay), lower than forecast primarily
due to the timing of expenditures. Including Hope Bay, the
total capital expenditures in the second quarter of 2021 were
$220.3 million. Capital
spending is expected to return to more normalized levels over the
balance of the year and the total capital expenditures (including
sustaining capital) in 2021 remain forecast to be approximately
$803.0 million, excluding the Hope
Bay mine. Pre-commercial production at the Tiriganiaq open
pit at Meliadine is incorporated in, and netted against, the total
2021 capital expenditure forecast. As a result, some
variability is likely depending on the timing of the achievement of
commercial production, prevailing gold prices and foreign exchange
rates.
The following table sets out capital expenditures (including
sustaining capital) in the second quarter of 2021 and the first six
months of 2021.
Capital
Expenditures
(In thousands of U.S. dollars)
|
|
|
|
|
Three Months
Ended
June 30, 2021
|
|
Six Months
Ended
June 30, 2021
|
Sustaining
Capital
|
|
|
|
LaRonde
Complex
|
$
|
27,959
|
|
$
|
49,531
|
Canadian Malartic
mine
|
20,758
|
|
40,313
|
Meadowbank
Complex
|
17,945
|
|
25,287
|
Meliadine
mine
|
12,887
|
|
23,095
|
Kittila
mine
|
7,280
|
|
17,924
|
Goldex mine
|
9,214
|
|
16,384
|
Pinos Altos
mine
|
3,876
|
|
7,994
|
La India
mine
|
1,350
|
|
3,205
|
Total Sustaining
Capital
|
$
|
101,269
|
|
$
|
183,733
|
|
|
|
|
Development
Capital
|
|
|
|
LaRonde
Complex
|
$
|
13,704
|
|
$
|
22,489
|
Canadian Malartic
mine
|
11,403
|
|
19,051
|
Meadowbank
Complex
|
4,475
|
|
8,506
|
Amaruq underground
project
|
25,725
|
|
36,074
|
Meliadine
mine
|
15,359
|
|
29,209
|
Kittila
mine
|
21,203
|
|
35,583
|
Goldex mine
|
4,439
|
|
8,493
|
Pinos Altos
mine
|
6,364
|
|
7,917
|
La India
mine
|
1,971
|
|
3,645
|
Other
|
3,378
|
|
9,467
|
Total Development
Capital
|
$
|
108,021
|
|
$
|
180,434
|
Total Capital
Expenditures - excluding Hope Bay
|
$
|
209,290
|
|
$
|
364,167
|
|
|
|
|
Hope Bay mine
Sustaining Capital
|
$
|
9,664
|
|
$
|
16,397
|
Hope Bay mine
Development Capital
|
1,328
|
|
2,762
|
Total Capital
Expenditures - including Hope Bay
|
$
|
220,282
|
|
$
|
383,326
|
2021 Production and Cost Guidance Unchanged
Production guidance for 2021 remains unchanged at approximately
2,047,500 ounces of gold (including approximately 30,000 ounces and
350 ounces of pre-commercial gold production from the Tiriganiaq
open pit at Meliadine and Amaruq underground project,
respectively). The Company anticipates that total cash costs
per ounce and AISC per ounce for 2021 will continue to be in the
range of $700 to $750 and $950 to
$1,000, respectively. Estimated
payable gold production and costs for 2021 exclude any contribution
from Hope Bay.
Quarterly production guidance for Hope Bay is unchanged at
approximately 18,000 to 20,000 ounces of gold at total cash costs
per ounce of $950 to $975 and AISC per ounce of $1,525 to $1,575.
2021 Tax Guidance
Income and mining taxes expense for the first six months of 2021
was $186.1 million (an effective tax
rate of 36%). The Company anticipates the overall full year
effective tax rate for 2021 to be approximately 40% based on
expected margins. Previous full year 2021 guidance for the
effective tax rate was 40 to 45%.
Cost Inflation Update
With rising prices for many commodities (lumber, steel, basic
materials, oil, etc.) and disruptions to global supply-chains, the
resulting cost pressures are gradually being pushed downstream and
are starting to be reflected in the prices for a number of goods
and services used by the Company. This price inflation,
although expected to be temporary in nature, could last through the
end of 2021 and, depending on when conditions on the supply-side
normalize, potentially into 2022.
At this time, the Company does not anticipate any significant
impact on labour costs as a result of wage inflation, other than
contract exploration drilling and select contractor groups.
The strategy to contain the risk of workforce cost increases
includes initiatives such as implementing organizational workforce
cost management projects to improve productivity, as well as career
development plans to fill specific technical roles with internal
candidates where possible. In addition, the Company expects
Nunavut labour costs to decline
with the return of the Nunavummiut workforce.
Despite the inflationary pressures faced so far this year, the
Company remains on track to achieve its 2021 cost guidance on the
back of cross-functional cost management efforts and
initiatives. The Company will continue to actively monitor
and identify opportunities to manage and mitigate input cost
pressures as supply chains stabilize.
Demonstrating strong ESG performance
In March 2020, the Company decided
to send the Nunavut-based
workforce home and isolate its mines from the local
communities. In accordance with COVID-19 health guidelines
issued by the Government of Nunavut, the Nunavut-based workforce has remained at home
since then and the Company has continued to pay 75% of base
salaries to these employees. In the second quarter of 2021,
the Company worked with local authorities to finalize a plan for
reintegrating the Nunavut-based
workforce while attempting to minimize the risk of
exposure to COVID-19 and the spread of the virus to the
local communities. The plan was approved by the Chief Public
Health Officer of Nunavut in
mid-June 2021. A gradual return of the Nunavut-based workforce has been planned,
including training on the robust health protocols and hygiene
measures implemented at the sites and re-training on job specific
skills and competencies in order to ensure a safe reintegration
into the operations. The reintegration of the Nunavut-based workforce started on
June 25, 2021 and will be extended
over the next eight to twelve weeks. The return of the
Nunavut-based workforce is
expected to result in a cost savings for the Company of
approximately $4.0 million per
quarter (before tax), starting in the fourth quarter of 2021.
The Company is committed to maintaining consistently high
health and safety standards. In 2020, the Company took
another step along its journey to eliminate workplace injuries and
reach its goal of zero accidents by launching the Towards Zero
Accidents initiative. This program has helped the Company to
register its best quarterly safety performance in its 64-year
history, with a combined lost-time accident and restricted work
frequency (employees and contractors) at 0.53 (including Canadian
Malartic) in the second quarter of 2021.
On April 29, 2021, the Company
announced its commitment to net zero carbon emissions by
2050. Pathways to achieve net zero, including specific
reduction targets, and other key climate-related targets are
currently being developed. In the meantime, the Company's
operating sites continue to research, develop and implement new GHG
reduction initiatives. At the Hope Bay project, GHG emissions
are generated mostly from the diesel generators used to power the
site. On July 14, 2021, the
Company signed a memorandum of understanding (the "MOU") with
TUGLIQ Energy Corp. and Hiqiniq Energy Corporation (a wholly-owned
subsidiary of Kitikmeot Corporation) to jointly work to develop a
renewable energy plan for the Hope Bay project. The MOU
envisions that TUGLIQ Energy Corp. and Hiqiniq Energy Corporation
will build and operate a wind turbine project and sell power to the
Company for its operations at Hope Bay. This collaboration
will benefit both the Company by reducing its GHG emissions and
energy costs at Hope Bay, and the local community by developing
local green-power capacity.
In the second quarter of 2021, the Company was awarded the 2021
Towards Sustainable Mining® Community Engagement Award by the
Mining Association of Canada. This award honours the
Company's innovative community development work in Mexico.
The Pinos Altos mine in
collaboration with the Municipality of Temosachic, helped 300 families in
Mexico gain access to clean,
sustainable drinking water. The design and installation of a
drinking water distribution network powered by low-carbon solar
cells provides a continuous supply of clean, fresh drinking water
to the community and contributes to the United Nations Sustainable
Development Goal #6 – the availability and sustainable management
of water and sanitation for all. This is the second year in a
row that the Company has received a Towards Sustainable Mining®
excellence award.
For the third consecutive year the Company has earned a place on
the Corporate Knights list of Canada's Best 50 Corporate Citizens. The
Best 50 Corporate Citizens are selected through evaluations of key
environmental, social and governance indicators relative to their
industry peers and using publicly available information.
Being named to the list over each of the last three years
demonstrates that the Company continues to be one of the Canadian
leaders with respect to environmental, social and governance
matters in the mining industry.
In the second quarter of 2021, all of the regions in which the
Company operates have seen a significant reduction in COVID-19
cases. With vaccination campaigns progressing, governments
have started to ease the restrictions imposed to address the
pandemic. The Company remains engaged in managing risks
related to COVID-19 and continues to apply the measures implemented
to help protect the health and safety of its employees and the
communities in which it operates. These measures appear to
have been effective to date at detecting COVID-19 cases and
preventing the spread of the virus within the Company's
operations. In the second quarter of 2021, none of the
Company's operations were suspended and the number of employees
testing positive for COVID-19 has trended downward (115
positive cases in the second quarter of 2021 compared to 219
positive cases in the first quarter of 2021). The table below
sets out additional information on COVID-19 cases identified in the
second quarter of 2021; a significant majority of which were
detected by the Company's screening and testing protocols.
Region
|
Total Positive
Cases
|
Detected
Offsite
|
Detected by the
Company's protocols
|
Recovered
Cases*
|
Finland
|
1
|
1
|
—
|
1
|
Nunavut
|
11
|
7
|
4
|
1
|
Abitibi
|
9
|
6
|
3
|
12
|
Mexico
|
72
|
3
|
69
|
118
|
Exploration
|
21
|
16
|
5
|
18
|
Toronto
|
1
|
1
|
—
|
1
|
Sub-Total
|
115
|
34
|
81
|
151
|
|
*Recovered Cases in
the second quarter of 2021 include employees that were positive and
had not yet recovered at the end of the first quarter of 2021 and
that recovered in the second quarter of 2021.
|
Dividend Record and Payment Dates for the Third Quarter of
2021
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.35 per common share,
payable on September 15, 2021 to
shareholders of record as of September
1, 2021. Agnico Eagle has declared a cash dividend
every year since 1983.
Remaining Expected Dividend Record and Payment Dates for
2021
Record
Date
|
Payment
Date
|
September 1,
2021*
|
September 15,
2021*
|
December 1,
2021
|
December 15,
2021
|
*Declared
Dividend Reinvestment Plan
Please see the following link for information on the Company's
dividend reinvestment plan: Dividend Reinvestment Plan
Second Quarter 2021 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Thursday, July 29, 2021 at
11:00 AM (E.D.T.) to discuss
the Company's second quarter financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
416-764-8659 or toll-free 1-888-664-6392. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access
code 754213#. The conference call replay will expire on
August 29, 2021.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in the LaRonde Complex (which includes the LaRonde and
LaRonde Zone 5 ("LZ5") mines) and the Goldex mine and a 50%
interest in the Canadian Malartic mine. These mines are
located within 50 kilometres of each other, which provides
operating synergies and allows for the sharing of technical
expertise.
LaRonde Complex – Increased Tonnage From the West Mine and
Strong Productivity at LZ5 Results in Better Than Forecasted
Quarterly Production and Costs
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988. The LZ5 property lies adjacent to and west of the
LaRonde mine and previous operators exploited the zone by open pit
mining. The LZ5 mine achieved commercial production in
June 2018.
LaRonde Complex –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
721
|
|
509
|
Tonnes of ore milled
per day
|
7,923
|
|
5,593
|
Gold grade
(g/t)
|
4.42
|
|
4.78
|
Gold production
(ounces)
|
97,523
|
|
74,317
|
Production costs per
tonne (C$)
|
$
|
125
|
|
$
|
134
|
Minesite costs per
tonne (C$)
|
$
|
115
|
|
$
|
107
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
759
|
|
$
|
682
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
502
|
|
$
|
502
|
Gold production in the second quarter of 2021 increased when
compared to the prior-year period primarily as a result of a higher
throughput levels partially offset by lower gold grades. In
the second quarter of 2021, the Complex operated above planned
levels mostly due to the higher use of automated equipment which
increased the underground mining productivity. Also, in the
prior-year period, the operations were suspended from March 23, 2020 to April
29, 2020 as ordered by the Government of Quebec in response to COVID-19 (the "Quebec
Order"). The lower gold grades in the 2021 period were
as expected with the planned mining sequence.
Production costs per tonne in the second quarter of 2021
decreased when compared to the prior-year period primarily due to
higher throughput and the timing of unsold concentrate
inventory. Production costs per ounce in the second quarter
of 2021 increased when compared to the prior-year period due to the
strengthening of the Canadian dollar against the U.S. dollar and
the lower gold grades, partially offset by lower production costs
per tonne.
Minesite costs per tonne6 in the second quarter of
2021 increased when compared to the prior-year period primarily due
to lower development activity in the prior-year period, partially
offset by higher throughput levels in the second quarter of
2021. Total cash costs per ounce in the second quarter of
2021 were the same when compared to the prior-year period as the
higher by-product revenues due to higher average realized
by-product metal prices were offset by the strengthening of the
Canadian dollar against the U.S. dollar and the higher minesite
costs per tonne.
____________________________
|
6 Minesite costs per tonne is a
non-GAAP measure. For a reconciliation of this measure to
production costs as reported in the financial statements, see
"Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of
Performance" below.
|
LaRonde Complex –
Operating Statistics
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
1,485
|
|
1,166
|
Tonnes of ore milled
per day
|
8,204
|
|
6,407
|
Gold grade
(g/t)
|
4.22
|
|
4.04
|
Gold production
(ounces)
|
190,601
|
|
144,004
|
Production costs per
tonne (C$)
|
$
|
116
|
|
$
|
94
|
Minesite costs per
tonne (C$)
|
$
|
111
|
|
$
|
108
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
724
|
|
$
|
577
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
521
|
|
$
|
606
|
Gold production in the first six months of 2021 increased when
compared to the prior-year period primarily as a result of higher
throughput levels and higher grade. In the first six months
of 2021, the LaRonde Complex operated at or above planned levels
primarily as a result of increased productivity in the underground
resulting from the higher use of automated equipment. In the
prior-year period, access to higher grade ore from the West mine
area was delayed as additional ground support was being completed
and the operations were suspended from March
23, 2020 to April 29, 2020 due
to the Quebec Order.
Production costs per tonne in the first six months of 2021
increased when compared to the prior-year period primarily due to
the timing of unsold concentrate inventory. Production costs
per ounce in the first six months of 2021 increased when compared
to the prior-year period due to the reason described above and the
strengthening of the Canadian dollar against the U.S. dollar,
partially offset by higher gold grades.
Minesite costs per tonne in the first six months of 2021
increased when compared to the prior-year period primarily due to
lower development activity in the prior-year period, partially
offset by higher throughput levels in the first six months of
2021. Total cash costs per ounce in the first six months of
2021 decreased when compared to the prior-year period due to higher
gold grades and higher by-product revenues due to higher average
realized by-product metal prices, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar and
higher minesite costs per tonne.
In 2020, the Company experienced lower levels of seismicity at
LaRonde due to reduced mining activity as a result of
COVID-19. With increased mining activity, seismicity levels
in 2021 have returned to similar levels seen in 2018 and
2019. The Company believes that the ground support measures
and the non-entry protocols reinforced in early 2020 are well
adapted to manage seismicity levels.
Operational Highlights
- In the second quarter of 2021, a planned ten-day maintenance
shutdown was completed on schedule. At the mill, maintenance work
was completed on the online analyser, the concentrate filter
presses and on the 5,000 tonne ore silo. At the mine, maintenance
work was completed on the surface exhaust fan
- Production from automated equipment continued to track well
above target both at LaRonde and LZ5. At the LaRonde mine, 29% of
the production mucking was done in automated mode with operators
based on surface. At the LZ5 mine, 21% of the production mucking
and hauling was done in automated mode with operators based on
surface
- Production from the West mine area at the LaRonde mine
continues to perform above plan. In the second quarter of 2021, the
production rate averaged 1,478 tpd compared to a target of 1,150
tpd, which resulted in over 30% of the gold produced by the LaRonde
Complex being sourced from the West mine. In the second half of
2021, approximately 20-25% of the gold is expected to be sourced
from the West mine area
- The LZ5 mine had another strong quarter with a production rate
of 3,140 tpd, above the expected rate of 3,020 tpd, driven
primarily by the continuing optimization of production from
automated equipment. The Company is targeting to maintain this
production rate in the second half of 2021
- As part of ongoing stakeholder engagement, the Company is in
advanced discussions with First Nations groups concerning a
collaboration agreement
Project Highlights
- Dewatering of the old workings in Zone LR11-3 (which is at the
past producing Bousquet 2 mine) resumed in June 2021 following the installation of a new
pumping system. The development access from level 146 of the
LaRonde mine towards Zone LR11-3 advanced by 337 metres in the
second quarter of 2021 and is expected to reach the main ramp in
the third quarter of 2021. Production activities in Zone LR11-3 are
expected to begin in 2022
- In the second quarter of 2021, track drift 9-0 was
rehabilitated to the first drill station, the enlargement of track
drift 215 progressed by 364 metres and exploration drift 290
advanced by 99 metres. The three exploration drifts are being
developed to explore areas located one to three kilometres from
surface below LZ5 and west of the 20N Zone. Initial exploration
drilling is expected to commence from the drill station in track
drift 9-0 in the third quarter of 2021
- The construction of the drystack tailings facilities is
progressing on schedule. The overall engineering level is now 94%
complete. The filtration plant building and the thickener
foundations are under construction and most of the major components
have been received at June 30, 2021.
The drystack tailings facility is expected to be operational by the
end of 2022. Drystacking will help limit the footprint of the new
tailings facility and improve the closure of the main tailings
ponds
Canadian Malartic Mine – New Quarterly Record for Tonnes
Mined and Gold Produced; Odyssey Development Project Proceeding on
Budget and Schedule
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation (now
Canadian Malartic Corporation) and
created Canadian Malartic GP (the
"Partnership"). The Partnership owns the Canadian Malartic
mine in northwestern Quebec and
operates it through a joint management committee. Each of
Agnico Eagle and Yamana has a direct and indirect 50% ownership
interest in the Partnership. All volume data in this
section reflect the Company's 50% interest in the Canadian Malartic
mine, except as otherwise indicated. The Odyssey underground
project was approved for construction in February 2021.
Canadian Malartic
Mine – Operating Statistics
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
5,640
|
|
4,456
|
Tonnes of ore milled
per day (100%)
|
61,978
|
|
51,743
|
Gold grade
(g/t)
|
1.13
|
|
0.86
|
Gold production
(ounces)
|
92,106
|
|
54,134
|
Production costs per
tonne (C$)
|
$
|
28
|
|
$
|
23
|
Minesite costs per
tonne (C$)
|
$
|
28
|
|
$
|
25
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
689
|
|
$
|
690
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
657
|
|
$
|
762
|
Gold production in the second quarter of 2021 increased when
compared to the prior-year period primarily due to higher
throughput levels and higher gold grades. The higher
throughput primarily resulted from strong operational performance
and continuous operation through the quarter while, in the
prior-year period, the operations were suspended from March 23, 2020 to April
17, 2020 due to the Quebec Order. The higher gold
grade primarily resulted from increased sourcing of ore from the
higher grade Barnat pit in the second quarter of 2021 while, in the
prior-year period, lower grade stockpiles were processed during the
ramp-up of operations following the Quebec Order.
Production costs per tonne in the second quarter of 2021
increased when compared to the prior-year period primarily due to
higher open pit production costs resulting from a higher stripping
ratio, higher royalty payments due to higher realized gold prices
and higher rehandling costs, partially offset by higher than
anticipated deferred stripping adjustment and higher throughput
levels. Production costs per ounce in the second quarter of
2021 were essentially the same when compared to the prior-year
period as the reasons described above and the strengthening of the
Canadian dollar against the U.S. dollar were offset by higher gold
production.
Minesite costs per tonne in the second quarter of 2021 increased
when compared to the prior-year period primarily due to higher open
pit production costs resulting from a higher stripping ratio and
higher royalty payments due to higher realized gold prices,
partially offset by higher than anticipated deferred stripping
adjustment and higher throughput levels. Total cash costs per
ounce in the second quarter of 2021 decreased when compared to the
prior-year period primarily due to higher gold production,
partially offset by the reasons described above and the
strengthening of the Canadian dollar against the U.S. dollar.
Canadian Malartic
Mine – Operating Statistics
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes) (100%)
|
10,902
|
|
9,098
|
Tonnes of ore milled
per day (100%)
|
60,232
|
|
52,861
|
Gold grade
(g/t)
|
1.16
|
|
0.90
|
Gold production
(ounces)
|
181,656
|
|
115,923
|
Production costs per
tonne (C$)
|
$
|
28
|
|
$
|
25
|
Minesite costs per
tonne (C$)
|
$
|
28
|
|
$
|
26
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
655
|
|
$
|
742
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
637
|
|
$
|
747
|
Gold production in the first six months of 2021 increased when
compared to the prior-year period primarily due to higher gold
grades and higher throughput. The higher throughput primarily
resulted from strong operational performance and continuous
operation through the first six months of 2021 while, in the
prior-year period, the operations were suspended from March 23, 2020 to April
17, 2020 due to the Quebec Order. The higher gold
grade primarily resulted from increased sourcing of ore from the
higher grade Barnat pit in the first six months of 2021 while, in
the prior-year period, lower grade stockpiles were processed during
the ramp-up of operations following the Quebec Order.
Production costs per tonne in the first six months of 2021
increased when compared to the prior-year period primarily due to
higher open pit production costs resulting from a higher stripping
ratio, partially offset by higher throughput and higher than
anticipated deferred stripping adjustment. Production costs
per ounce in the first six months of 2021 decreased when compared
to the prior-year period primarily due to higher gold production,
partially offset by higher production costs per tonne and the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first six months of 2021
increased when compared to the prior-year period primarily due to a
higher stripping ratio at the Barnat pit, partially offset by
higher throughput and higher than anticipated deferred stripping
adjustment. Total cash costs per ounce in the first six
months of 2021 decreased when compared to the prior-year period
primarily due to higher gold production, partially offset by higher
minesite cost per tonne and the strengthening of the Canadian
dollar against the U.S. dollar.
Operational Highlights
- In the second quarter of 2021, the operation achieved one of
its best quarters in terms of health and safety
- On June 10, 2021, Canadian
Malartic received two distinction awards from the Quebec Mining
Association for the marketing and communication strategies related
to the mine's campaigns on safety and community relations
- On June 14, 2021, Canadian
Malartic received its Cyanide Code certification
- The mine had another strong quarter, achieving the best quarter
for tonnage mined at 18.3 million tonnes. The Canadian Malartic pit
provided approximately 60% of the ore in the second quarter of 2021
and is expected to continue driving production in 2021. Mining
flexibility remains limited due to a reduced footprint and higher
density of underground openings, increasing the demand for remote
activities. At the Barnat pit, the overburden removal was completed
in April 2021 and the excavation of
the south pushback related to the optimized pit design has
started
- The mill continued to perform well above target processing
5,638,693 tonnes (61,978 tpd on a 100% basis) in the second quarter
of 2021, helped by the softer ground conditions at Barnat
Project Highlights
Canadian Malartic:
- Tailings disposal is expected to transition to in-pit
deposition once mining in the Canadian Malartic pit is completed in
2023. The Canadian Malartic team has evaluated options to add
flexibility for tailings disposal prior to the transition by
increasing current cell capacity and potentially adding new cells.
Construction is expected to start on increasing tailings disposal
capacity in the fourth quarter of 2021
Odyssey Project:
- The first underground exploration drill bay was completed in
the second quarter of 2021 and underground drilling started on
July 7, 2021. The underground drill
program will aim to define and validate the upper levels of the
Odyssey South Zone and to better understand the local geology of
the internal zones at Odyssey
- The underground development is progressing ahead of schedule
and at lower development unit cost than anticipated. Approximately
402 linear metres of ramp development were completed in the second
quarter of 2021. In the third quarter of 2021, the first production
level and an exploration drift are expected to advance, as well as
the excavation of the first ventilation raise
- The excavation of the shaft collar and the concrete lining of
the first 27 metres were completed on June
8, 2021
- The concrete raft of the headframe and the slip form pour are
expected to be completed in the third quarter of 2021, while the
structural steel installation is expected to start in the fourth
quarter of 2021
- All of the mechanical and electrical purchase orders for the
sinking hoist and auxiliary hoist have been issued. Both hoists are
expected to be delivered and installed by the fourth quarter of
2022
- All surface construction activities are on target and shaft
sinking is expected to resume in the second half of 2022
once the headframe construction and hoists installations are
completed
- Exploration Highlights – Infill drilling continues to return
solid results in the core of the East Gouldie deposit, with recent
results returning up to 6.3 grams per tonne ("g/t") gold over 52.0
metres at 1,109 metres depth, including 8.9 g/t gold over 21.0
metres at 1,102 metres depth. The eastern extension of the deposit
continues to be tested and a new mineralized horizon was discovered
approximately 400 metres south of the East Gouldie deposit and
returning 3.5 g/t gold over 8.6 metres at 2,103 metres depth,
demonstrating the excellent exploration upside for new discoveries
in the vicinity of the Odyssey Project. For more information on the
latest results see the Company's news release dated July 8, 2021.
Goldex – Increased Mill Throughput and Lower Than Expected
Costs Drive Solid Operational Performance in the Second Quarter of
2021
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones
in September 2013. Commercial production from the Deep 1 Zone
commenced on July 1, 2017.
Goldex Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
723
|
|
533
|
Tonnes of ore milled
per day
|
7,945
|
|
5,857
|
Gold grade
(g/t)
|
1.66
|
|
1.48
|
Gold production
(ounces)
|
34,659
|
|
23,142
|
Production costs per
tonne (C$)
|
$
|
43
|
|
$
|
42
|
Minesite costs per
tonne (C$)
|
$
|
43
|
|
$
|
43
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
729
|
|
$
|
703
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
685
|
|
$
|
727
|
Gold production in the second quarter of 2021 increased when
compared to the prior-year period primarily due to higher mill
throughput levels and higher gold grade related to the mining
sequence. The higher throughput primarily resulted from
continuous operation through the quarter while, in the prior-year
period, the operations were suspended from March 23, 2020 to April
24, 2020 due to the Quebec Order.
Production costs per tonne in the second quarter of 2021
increased when compared to the prior-year period primarily due to
the timing of inventory sales, partially offset by higher
throughput. Production costs per ounce in the second quarter
of 2021 increased when compared to the prior-year period primarily
due to the strengthening of the Canadian dollar against the U.S.
dollar, partially offset by higher gold grades.
Minesite costs per tonne in the second quarter of 2021 were the
same when compared to the prior-year period. Total cash costs
per ounce in the second quarter of 2021 decreased when compared to
the prior-year period due to higher gold production, partially
offset by the strengthening of the Canadian dollar against the U.S.
dollar.
Goldex Mine –
Operating Statistics
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,450
|
|
|
1,190
|
|
Tonnes of ore milled
per day
|
|
8,011
|
|
|
6,538
|
|
Gold grade
(g/t)
|
|
1.65
|
|
|
1.63
|
|
Gold production
(ounces)
|
|
69,309
|
|
|
57,025
|
|
Production costs per
tonne (C$)
|
|
$
|
41
|
|
|
$
|
41
|
|
Minesite costs per
tonne (C$)
|
|
$
|
41
|
|
|
$
|
41
|
|
Production costs per
ounce of gold produced ($ per ounce)
|
|
$
|
689
|
|
|
$
|
635
|
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
|
$
|
654
|
|
|
$
|
626
|
|
Gold production in the first six months of 2021 increased when
compared to the prior-year period primarily due to higher mill
throughput levels. The higher throughput primarily resulted
from continuous operation through the quarter while, in the
prior-year period, the operations were suspended from March 23, 2020 to April
24, 2020 due to the Quebec Order.
Production costs per tonne in the first six months of 2021 were
the same when compared to the prior-year period. Production
costs per ounce in the first six months of 2021 increased when
compared to the prior-year period primarily due to the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first six months of 2021 were
the same when compared to the prior-year period. Total cash
costs per ounce in the first six months of 2021 increased when
compared to the prior-year period due to the strengthening of the
Canadian dollar against the U.S. dollar.
Operational Highlights
- In the second quarter and first six months of 2021, Goldex had
strong results in terms of health and safety
- In May 2021, Goldex completed a
planned five-day shutdown for underground maintenance to change
liners in the loading station silo and a concurrent seven-day
shutdown at surface for maintenance to the electrical substation
and the main frame of the secondary crusher
- In the second quarter of 2021, Goldex experienced seismicity
related to the mining of the Deep 1 Zone. Increased dynamic ground
support in certain areas and minor adjustments to mining
protocols were implemented
- In the second quarter of 2021, production ramped up in the
South Zone sector 2, with the extraction of four stopes. These
initial stopes confirm the gold grade predicted by the block model
and resulted in lower dilution than anticipated. Production from
the higher grade South Zone is expected to increase to 750 tpd in
the fourth quarter of 2021
Kirkland Lake Project – 2021 Drilling Focused on Infilling
and Expanding Mineral Resources at Upper Beaver Deposit
The 100% owned Kirkland Lake
project in northeastern Ontario
covers approximately 25,506 hectares (approximately 35 kilometres
long by 17 kilometres wide) in the prolific Kirkland Lake mining district.
The conversion and expansion drilling program at depth at the
Upper Beaver deposit continues to intersect significant high-grade
mineralization, further expanding the Footwall Zone. The new
results include highlight intercepts such as 21.2 g/t gold and
0.67% copper over 14.8 metres at 1,190 metres depth. Robust
gold intersections obtained so far in 2021 within the Footwall Zone
are expected to have a significant impact on size and potentially
average grade of this zone in the next mineral reserve and mineral
resource estimate update. These positive drill results will
be incorporated in an internal technical study which is now
expected in 2022. For more information on the latest results
see the Company's news release dated July 8,
2021.
NUNAVUT REGION
Agnico Eagle considers Nunavut a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's Meliadine mine and Meadowbank Complex (including the
Amaruq satellite deposit), together with the recently acquired Hope
Bay mine and other exploration projects, Nunavut has the potential to be a strategic
operating platform for the Company with the ability to generate
strong gold production and cash flows over several decades.
Meadowbank Complex – Higher quarterly production due to
increased mining and milling rates and higher grades with deepening
of the Whale Tail pit and contribution from IVR
The 100% owned Meadowbank Complex is located approximately 110
kilometres by road north of Baker
Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of
the Meadowbank mine and mill and the Amaruq satellite deposit,
which is located 50 kilometres northwest of the Meadowbank
mine. The Meadowbank mine achieved commercial production in
March 2010, and mining activities at
the site were completed by the fourth quarter of 2019.
The Amaruq mining operation uses the existing infrastructure at
the Meadowbank minesite. Additional infrastructure has also
been built at the Amaruq site. Amaruq ore is transported
using long haul off-road type trucks to the mill at the Meadowbank
site for processing. The Amaruq satellite deposit achieved
commercial production on September 30,
2019.
Meadowbank Complex
– Operating Statistics*
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
879
|
|
312
|
Tonnes of ore milled
per day
|
9,680
|
|
3,429
|
Gold grade
(g/t)
|
3.29
|
|
1.81
|
Gold production
(ounces)
|
85,551
|
|
16,417
|
Production costs per
tonne (C$)
|
$
|
137
|
|
$
|
124
|
Minesite costs per
tonne (C$)
|
$
|
138
|
|
$
|
143
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,122
|
|
$
|
1,735
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,077
|
|
$
|
2,260
|
|
*In the second
quarter of 2021, the Amaruq underground project had 348 ounces of
pre-commercial gold production.
|
In the second quarter of 2021, gold production increased when
compared to the prior-year period primarily due to the higher
mining rate and mill throughput, and higher grade with deepening of
the pit and the contribution from the IVR open pit. The
higher throughput in the second quarter of 2021 resulted from
strong operational performance and good ore grinding properties
while, in the prior-year period, the Complex operated at reduced
levels and the mill was placed on care and maintenance until
May 28, 2020 related to the
implementation of measures to reduce the spread of COVID-19.
Production costs per tonne in the second quarter of 2021
increased when compared to the prior-year period primarily due to
lower rehandling costs and deferred stripping adjustments and the
timing of inventory sales, partially offset by higher
throughput. Production costs per ounce in the second quarter
of 2021 decreased when compared to the prior-year period due to
higher gold production, partially offset by the reasons described
above and the strengthening of the Canadian dollar against the U.S.
dollar.
Minesite costs per tonne in the second quarter of 2021 decreased
when compared to the prior-year period primarily due to higher mill
throughput, partially offset by lower rehandling costs and deferred
stripping adjustments. Total cash costs per ounce in the
second quarter of 2021 decreased when compared to the prior-year
period primarily due to higher gold production and lower minesite
costs per tonne, partially offset by the strengthening of the
Canadian dollar against the U.S. dollar.
Meadowbank Complex
– Operating Statistics*
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
1,803
|
|
891
|
Tonnes of ore milled
per day
|
9,972
|
|
4,896
|
Gold grade
(g/t)
|
3.11
|
|
2.49
|
Gold production
(ounces)
|
165,516
|
|
65,758
|
Production costs per
tonne (C$)
|
$
|
129
|
|
$
|
178
|
Minesite costs per
tonne (C$)
|
$
|
134
|
|
$
|
171
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,108
|
|
$
|
1,792
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,099
|
|
$
|
1,798
|
|
*In the first six
months of 2021, the Amaruq underground project had 348 ounces of
pre-commercial gold production.
|
In the first six months of 2021, gold production increased when
compared to the prior-year period primarily due to higher
throughput resulting from strong operational performance,
optimization of processing facility throughput and higher grade
with deepening of the pit and the contribution from the IVR open
pit. In the prior-year period, production activities at the
Complex were reduced and the mill was put on care and maintenance
from March 19, 2020 to May 28, 2020 related to the implementation of
measures to reduce the spread of COVID-19.
Production costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
higher mill throughput, partially offset by lower deferred
stripping adjustment. Production costs per ounce in the first
six months of 2021 decreased when compared to the prior-year period
due to higher gold production, partially offset by lower deferred
stripping adjustments and the strengthening of the Canadian dollar
against the U.S. dollar.
Minesite costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
the reasons described above. Total cash costs per ounce in
the first six months of 2021 decreased when compared to the
prior-year period due to the reasons described above.
Operational Highlights
- A planned five-day mill shut down was completed on schedule in
April 2021 to perform maintenance
work and replace SAG and ball mill liners. The mill throughput rate
was better than anticipated primarily due to softer ore conditions
and good operational performance specifically during the break-in
of the new liners
- This year's caribou migration had less impact on the operation
than in previous years. Better preparation as well as faster
migration contributed to this improvement. A number of convoys
were also done, in conjunction with local stakeholders, to carry
critical supplies to the Amaruq site during the migration. Given
the unpredictability of the seasonal migration, the Company
continues to work with government and local stakeholders to ensure
that mining activities have a minimal impact on Caribou
migration
- In the second quarter of 2021, open pit production continued to
achieve solid performance and the total material mined reached 10.4
million tonnes despite challenges related to the freshet and its
impact on production drilling
- In the second quarter of 2021, a slight deterioration of the
Whale Tail Phase 2 north east pit wall was observed. A mitigation
plan is underway which will result in a slight increase in the
stripping ratio but no significant ore loss due to flexibility in
the current pit design
- The long haul truck fleet demonstrated another quarter of
strong performance as a result of good mechanical availability and
improved productivity, and also achieved a record monthly tonnage
hauled in June with over 381,000 tonnes
- Gold production in the second half of 2021 is expected to be
higher than in the first half of 2021 but it could be negatively
affected by revisions to the mining plan. Pit design at IVR as
well as the mining sequence at Whale Tail are being reviewed
following recent delineation drilling results and some mining
capacity will also be redirected from Whale Tail phase 1 to phase 2
and 3 in order to improve production flexibility in the coming
years
Underground Project Highlights
- Underground development performance was ahead of plan in the
second quarter of 2021. Ore is now exposed on the 290-197 level
first ore drift resulting in pre-commercial production of 348
ounces of gold. The ore drift on the 320-197 level is now
started
- The first Alimak development from surface to level 230 was
completed on May 6, 2021 and the
egress construction was completed on June
23, 2021
- The engineering and procurement activities for the underground
infrastructure, including the main ventilation system, the
underground maintenance shop and the cemented rockfill plant, are
on target to be ready for production which is expected in the first
half of 2022
Meliadine Mine – New Monthly Records Set in May 2021 for Mill Throughput and Gold
Production
Located near Rankin Inlet in
the Kivalliq District of Nunavut,
Canada, the Meliadine project was acquired in July
2010. The Company owns 100% of the 111,358-hectare
property. In February 2017, the
Company's Board of Directors approved the construction of the
Meliadine project and commercial production was declared on
May 14, 2019.
Meliadine Mine –
Operating Statistics*
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
324
|
|
337
|
Tonnes of ore milled
per day**
|
4,585
|
|
3,703
|
Gold grade
(g/t)
|
7.48
|
|
5.66
|
Gold production
(ounces)
|
87,641
|
|
59,375
|
Production costs per
tonne (C$)
|
$
|
211
|
|
$
|
251
|
Minesite costs per
tonne (C$)
|
$
|
222
|
|
$
|
246
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
628
|
|
$
|
1,033
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
616
|
|
$
|
1,051
|
|
*In the second
quarter of 2021, the Tiriganiaq open pit had 9,053 ounces of
pre-commercial gold production.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 71 days in the second quarter of
2021
|
Gold production in the second quarter of 2021 increased when
compared to the prior-year period primarily due to higher gold
grades as ore was increasingly sourced from the higher-grade
RP3 horizon which returned higher
grade than anticipated. In the prior-year period, the
minesite operated at reduced levels in April and May as a
result of measures taken to reduce the spread of COVID-19 and
the mill processed mostly lower grade stockpiles.
Production costs per tonne in the second quarter of 2021
decreased when compared to the prior-year period due to higher
throughput and the timing of inventory, partially offset by higher
underground maintenance costs and site services costs.
Production costs per ounce in the second quarter of 2021 decreased
when compared to the prior-year period due to lower production
costs per tonne and higher gold grades, partially offset by the
strengthening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the second quarter of 2021 decreased
when compared to the prior-year period primarily due to higher
throughput. Total cash costs per ounce in the second quarter
of 2021 decreased when compared to the prior-year period due to
higher gold grades and lower minesite costs per tonne, partially
offset by the strengthening of the Canadian dollar against the U.S.
dollar.
Meliadine Mine –
Operating Statistics*
|
|
|
|
All metrics
exclude pre-commercial production tonnes and ounces
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
662
|
|
644
|
Tonnes of ore milled
per day**
|
4,598
|
|
3,538
|
Gold grade
(g/t)
|
7.47
|
|
6.45
|
Gold production
(ounces)
|
175,644
|
|
129,350
|
Production costs per
tonne (C$)
|
$
|
219
|
|
$
|
243
|
Minesite costs per
tonne (C$)
|
$
|
220
|
|
$
|
244
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
653
|
|
$
|
894
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
622
|
|
$
|
915
|
|
*Pre-commercial
production in the first six months of 2021 from the Tiriganiaq
deposit was 17,176 ounces of gold.
|
**Excluding tonnes
milled on a pre-commercial production basis, the mill operated for
an equivalent of 144 days in the first six months of
2021.
|
Gold production in the first six months of 2021 increased when
compared to the prior-year period primarily due to higher grades as
expected based on the mining sequence and higher throughput as
Meliadine delivered a strong performance with the processing rate
at approximately 4,600 tpd. In the prior-year period, the
Meliadine processing plant was negatively affected by a failure of
the crusher apron feeder resulting in lower throughput levels in
the first quarter of 2020 and by reduced operating rates related to
measures taken to reduce the spread of COVID-19 in the second
quarter of 2020.
Production costs per tonne in the first six months of 2021
decreased when compared to the prior-year period due to higher
throughput and the timing of inventory. Production costs per
ounce in the first six months of 2021 decreased when compared to
the prior-year period due to lower production costs per tonne and
higher gold grades, partially offset by the strengthening of the
Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
the reasons described above. Total cash costs per ounce in
the first six months of 2021 decreased when compared to the
prior-year period due to lower minesite costs per tonne and higher
gold grade, partially offset by the strengthening of the Canadian
dollar against the U.S. dollar.
Operational Highlights
- A planned four-day mill shut down was completed in April 2021 to perform maintenance work on the SAG
feed end outer liners and discharge grates
- The strong operational performance that was established in the
first quarter of 2021 was maintained in the second quarter of 2021,
while also achieving record quarterly performance in health and
safety since the start of operations
- Both the underground and open pit mines produced at expected
levels despite the impact from the early caribou migration.
Processed ore was on target at an average rate of approximately
4,600 tpd for the quarter and record throughput rate and payable
gold production in a month were established in May at 5,178 tpd and
35,810 ounces, respectively. Average throughput levels are expected
to remain stable at 4,600 tpd in the third quarter of 2021 and
reach 4,800 tpd in the fourth quarter of 2021
- The open pit water storage was completed in June 2021 with the successful excavation of the
Tiriganiaq pit 2. In addition to being a source of ore, the
pit provides 1.6 million cubic metres of storage capacity for
saline water, sufficient to last for multiple years based on
currently anticipated storage needs
- Phase 2 mill expansion work is progressing as planned, with
environmental fieldwork, engineering studies and consultations
ongoing
Water Management Update
- Approval of the water license amendment was received on
June 30, 2021, which secures the
planned surface contact water management and freshwater consumption
for the operation
- Waterline Activities – permitting activities in connection with
the saline water discharge line are continuing. The public hearing
was held on June 17, 2021 and all
outstanding issues have been successfully resolved. The application
is now being reviewed by the Nunavut Impact Review Board and a
final decision is expected in the third quarter of 2021
- For all applications, the Company is committed to continuing to
pursue consultation and collaboration opportunities with the local
community and Nunavut groups and
appreciates the efforts made by all to engage with the Company in
light of the challenges that have been caused by COVID-19
Exploration Highlights
Exploration and conversion drilling is ramping up close to
existing deposits and in the surrounding region. Recent
drilling at depth in the Pump deposit demonstrates the excellent
potential to increase mineral resources with intercepts such as
22.6 g/t gold over 4.2 metres at 508 metres depth, approximately
250 metres below the current mineral resource envelope.
Regional exploration has resumed between the Tiriganiaq and
Discovery deposits, encountering interesting results on the
Aquarius occurrence such as 21.7 g/t gold over 3.5 metres at 93
metres depth. For more information on the latest results see
the Company's news release dated July 8,
2021.
Hope Bay Mine – Increased Mill
Throughput Results in Higher Gold Production and Lower
Costs
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres
southwest of Cambridge Bay, the
Hope Bay mine was acquired in February 2021. The Company owns
100% of the 205,171-hectare property which includes the Hope Bay
and Elu greenstone belts. The 80-kilometre long Hope Bay
greenstone belt hosts three gold deposits (Doris, Madrid and Boston) with historical mineral reserves and
mineral resources and over 90 regional exploration targets.
At the time the Hope Bay mine was acquired, construction at the
Doris deposit was complete and commercial production had been
achieved in the second quarter of 2017. In 2021, the Company
expects to continue mining at the Doris deposit while undertaking
optimization efforts. The Doris mill facility, with a design
capacity of approximately 2,000 tpd, is currently being operated
with a three week on and a three week off rotation. The
Company has initiated a property wide exploration program and is
evaluating the Madrid and
Boston deposits for future
production.
Hope Bay Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2021*
|
Tonnes of ore milled
(thousands of tonnes)
|
95
|
|
134
|
Tonnes of ore milled
per day
|
1,044
|
|
899
|
Gold grade
(g/t)
|
8.92
|
|
9.46
|
Gold production
(ounces)
|
25,308
|
|
37,567
|
Production costs per
tonne (C$)
|
$
|
225
|
|
$
|
387
|
Minesite costs per
tonne (C$)
|
$
|
299
|
|
$
|
317
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
695
|
|
$
|
1,109
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
915
|
|
$
|
919
|
|
*All metrics are
for the period from February 2, 2021 to June 30,
2021.
|
Gold production in the second quarter of 2021 at Hope Bay was
25,308 ounces, with production costs per tonne of C$225, production costs per ounce of $695, minesite costs per tonne of C$299 and total cash costs per ounce of
$915.
Gold production in the first six months of 2021 at Hope Bay was
37,567 ounces, with production costs per tonne of C$387, production costs per ounce of $1,109, minesite costs per tonne of C$317 and total cash costs per ounce of
$919. All metrics for the first
six months of 2021 are from February 2,
2021 to June 30, 2021.
Operational Highlights
- In the second quarter of 2021, following upgrades to the water
treatment plant and to the underwater diffuser, the operation
resumed the discharge of saline water to Roberts Bay
- The Hope Bay mill delivered strong performance in the second
quarter of 2021 resulting in gold production above forecast and at
lower than anticipated costs. A thorough clean-up and optimization
of the plant contributed to stabilizing the circuit and achieving a
steady state in the operating cycle, which resulted in recoveries
maintained above 90% and an increase in throughput. The mill is
still operating on a three weeks on, three weeks off basis
- At the mine, lateral development progressed on target,
averaging 370 metres per month, and is expected to increase to 400
metres per month in the second half of 2021
- Ore development in the DCN Zone started in May 2021, followed by definition drilling in
July 2021. A portable cemented
rockfill plant is expected to be delivered on the sealift and be
operational in the fourth quarter of 2021, in time for the ramp up
of production in the DCN Zone. Full access to the DCN Zone in the
later part of the year is expected to increase underground
productivity but lower the average grade
- The Company is reviewing and implementing several low-cost
optimization opportunities designed to improve milling operations.
The conversion of the detox holding tank to an additional leach
tank was completed in May 2021. Other
opportunities include the addition of leach tank capacity
- Quarterly production guidance for Hope Bay is unchanged at
approximately 18,000 to 20,000 ounces of gold at total cash costs
per ounce of $950 to $975 and AISC per ounce of $1,525 to $1,575
Exploration Highlights
Exploration activity is ramping up with a total of seven drill
rigs now operating on the Doris and Madrid deposits. Recent results at Doris
confirm the potential to expand the BTD Extension Zone (currently
being mined), with results including: 10.9 g/t gold over 2.5 metres
at 309 metres depth, potentially expanding the zone 100 metres
north of the current mineral reserve limits; and 12.0 g/t gold over
7.1 metres at 282 metres depth in the West Valley Zone, potentially
extending the zone along plunge by 75 metres from the current
mineral reserve outline. The results confirm the potential to
expand zones currently being mined at Doris while drilling is
ramping up at Madrid. For more information on the latest
results see the Company's news release dated July 8, 2021.
FINLAND
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. The expansion of the Kittila mill
to 2.0 million tonnes per annum was completed in the fourth quarter
of 2020. An underground shaft is under construction and is
expected to be commissioned in 2022. Exploration activities
continue to expand the mineral reserves and mineral resources at
the Kittila mine. Near mine exploration remains the main
focus as the deposit remains open at depth and laterally.
Kittila – New Mill Tonnage Records in April and May;
Quarterly Production Affected by Lower Grades and Reduced
Throughput in June
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
483
|
|
500
|
Tonnes of ore milled
per day
|
5,308
|
|
5,495
|
Gold grade
(g/t)
|
3.96
|
|
4.38
|
Gold production
(ounces)
|
53,263
|
|
60,623
|
Production costs per
tonne (EUR)
|
€
|
83
|
|
€
|
78
|
Minesite costs per
tonne (EUR)
|
€
|
83
|
|
€
|
78
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
900
|
|
$
|
710
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
913
|
|
$
|
717
|
Gold production in the second quarter of 2021 decreased when
compared to the prior-year period primarily due to lower grades as
anticipated by the mining sequence and lower throughput as the mill
completed a planned eleven-day shutdown for regular maintenance on
the autoclave.
Production costs per tonne in the second quarter of 2021
increased when compared to the prior-year period primarily due to
higher maintenance costs at the mine and mill and lower throughput
levels, partially offset by reduced contractor usage for
development and haulage. Production costs per ounce in the
second quarter of 2021 increased when compared to the prior-year
period due to the lower gold production, higher production costs
per tonne and the strengthening of the Euro against the U.S.
dollar.
Minesite costs per tonne in the second quarter of 2021 increased
when compared to the prior-year period primarily due to the reasons
described above. Total cash costs per ounce in the second
quarter of 2021 increased when compared to the prior-year period
due to the reasons described above.
Kittila Mine –
Operating Statistics
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore milled
(thousands of tonnes)
|
977
|
|
920
|
Tonnes of ore milled
per day
|
5,398
|
|
5,055
|
Gold grade
(g/t)
|
4.17
|
|
4.30
|
Gold production
(ounces)
|
113,979
|
|
109,920
|
Production costs per
tonne (EUR)
|
€
|
83
|
|
€
|
85
|
Minesite costs per
tonne (EUR)
|
€
|
83
|
|
€
|
82
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
848
|
|
$
|
789
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
852
|
|
$
|
759
|
Gold production in the first six months of 2021 increased when
compared to the prior-year period primarily due to higher
throughput resulting from the ramp-up of the Kittila mill to its
expanded capacity of 2 million tonnes per annum, partially offset
by a planned eleven-day shutdown for regular maintenance on the
autoclave and lower gold grades, as anticipated by the mining
sequence.
Production costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
the timing of inventory and reduced contractor usage for
development and haulage, partially offset by higher maintenance and
site administration costs. Production costs per ounce in the
first six months of 2021 increased when compared to the prior-year
period due to the strengthening of the Euro against the U.S.
dollar, partially offset by the timing of inventory sales.
Minesite costs per tonne in the first six months of 2021 were
essentially the same when compared to the prior-year period as the
higher site administration and maintenance costs were offset by the
reduced contractor usage for development and haulage. Total
cash costs per ounce in the first six months of 2021 increased when
compared to the prior-year period due to the strengthening of the
Euro against the U.S. dollar and lower gold grades.
Operational Highlights
- In June 2021, a planned 11-day
shutdown at the Kittila mill for the regular yearly maintenance on
the autoclave was completed a day ahead of schedule, allowing for a
prompt resumption of operations
- The momentum established in the first quarter of 2021 at the
mill continued in the second quarter of 2021, achieving three
months of record mill feed volume from March to May 2021. Volumes increased mainly due to
successful tertiary crushing and the optimization of the grinding
media
- Similarly, the underground quarterly ore production remained
strong in the second quarter of 2021 at 537,000 tonnes, the second
best quarter in the mine's history
- The Company is targeting to implement a 5G network on surface
and in certain underground production areas in 2021. The 5G
network will secure Kittila's IT backbone and is expected to
further enhance the possibilities to implement high level of
automation technologies to the underground operations
Project Highlights
- The Kittila shaft project is 91% complete which is below
forecast. The delay is being caused by the impacts of
COVID-19 travel restrictions on the shaft sinking contractor.
The Company's efforts to return to previously expected advancement
rates resulted in improved performance in the second quarter of
2021. The shaft commissioning is now expected to be in the
second half of 2022. The overall project costs remain within
the previously disclosed estimated range of €190 to €200
million
- The expansion project at the Kittilä mine reached an important
milestone on June 14, 2021 with the
commissioning of the new underground rock line at levels 875 to
1000 with development rock. The rock line consist of various ore
passes, feeders, crusher, conveyors, magnetic separators and silos.
The rock line is expected to be fully commissioned once the main
hoist is operational
Exploration Highlights
Exploration drilling in the Sisar Zone continues to show the
potential to significantly expand mineral resources and mineral
reserves at depth. Recent drilling has provided the deepest
intercept to date at the Kittila mine, intersecting 10.7 g/t gold
over 7.8 metres in the Sisar Zone at 1,957 metres depth and
confirming that the Sisar Zone remains open at depth and extends
significantly below the current lower limit of the mineral
resources at 1,540 metres below surface. For more information
on the latest results see the Company's news release dated
July 8, 2021.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations have been a solid source of precious
metals production (gold and silver) with stable operating costs and
strong free cash flow since 2009.
Pinos Altos – Improved mill
performance in the second quarter of 2021; Drilling at Pinos Altos
Deep and Cubiro Continues to Extend Known Mineralization
The 100% owned Pinos Altos mine
in northern Mexico achieved
commercial production in November
2009.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
521
|
|
214
|
Tonnes of ore
processed per day
|
5,725
|
|
2,352
|
Gold grade
(g/t)
|
2.07
|
|
2.08
|
Gold production
(ounces)
|
32,614
|
|
13,880
|
Production costs per
tonne
|
$
|
76
|
|
$
|
85
|
Minesite costs per
tonne
|
$
|
70
|
|
$
|
68
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,206
|
|
$
|
1,313
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
849
|
|
$
|
862
|
Gold production in the second quarter of 2021 increased when
compared to the prior-year period primarily due to higher
throughput as the minesite operated at planned levels through the
period while, in the prior-year period, the operations were
suspended from April 2, 2020 to
May 18, 2020 as the Government of
Mexico mandated the suspension of
all non-essential businesses in response to the COVID-19 pandemic
(the "Decree").
Production costs per tonne in the second quarter of 2021
decreased when compared to the prior-year period primarily due to
higher throughput levels partially offset by higher royalty
payments related to higher realized gold prices and higher
stripping ratio at the Sinter open pit. Production costs per
ounce in the second quarter of 2021 decreased when compared to the
prior-year period due to lower production costs per tonne for the
reasons described above, partially offset by the timing of the
inventory.
Minesite costs per tonne in the second quarter of 2021 increased
when compared to the prior-year period primarily due to higher
royalty payments related to higher realized gold prices and higher
stripping ratio at the Sinter open pit, partially offset by higher
throughput levels. Total cash costs per ounce in the second
quarter of 2021 decreased when compared to the prior-year period
due to higher by-product revenues from higher average realized
silver prices, partially offset by higher minesite costs per tonne
for the reasons described above.
Pinos Altos Mine –
Operating Statistics
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
1,014
|
|
694
|
Tonnes of ore
processed per day
|
5,602
|
|
3,813
|
Gold grade
(g/t)
|
1.99
|
|
2.24
|
Gold production
(ounces)
|
61,789
|
|
47,190
|
Production costs per
tonne
|
$
|
70
|
|
$
|
78
|
Minesite costs per
tonne
|
$
|
70
|
|
$
|
68
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,155
|
|
$
|
1,146
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
844
|
|
$
|
781
|
Gold production in the first six months of 2021 increased when
compared to the prior-year period primarily due to higher
throughput as the minesite operated at planned levels through the
period while, in the prior-year period, the operations were
suspended from April 2, 2020 to
May 18, 2020 as required by the
Decree, partially offset by lower grades resulting from adjustments
to the mine sequence in response to the challenging ground
conditions at Cerro Colorado.
Production costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
higher throughput and the timing of inventory, partially offset by
higher royalty payments related to higher realized gold prices,
higher processing costs related to higher unit costs for grinding
media and higher diesel consumption to run generators during a one
week power outage that affected northern Mexico in February 2021. Production
costs per ounce in the first six months of 2021 increased when
compared to the prior-year period due to lower gold grades,
partially offset by higher throughput and the timing of the
inventory.
Minesite costs per tonne in the first six months of 2021
increased when compared to the prior-year period primarily due to
higher royalty payments related to higher realized gold prices and
to higher processing costs for the reasons described above,
partially offset by higher throughput. Total cash costs per
ounce in the first six months of 2021 increased when compared to
the prior-year period due to lower gold grades and higher minesite
costs per tonne for the reasons described above, partially offset
by higher by-product revenues from higher average realized silver
prices.
Operational Highlights
- In the second quarter of 2021, a 72-hour planned shutdown at
the processing plant was completed to replace the SAG and ball mill
liners and lifters and to replace the cylinder shell (due to early
wear). The plant operated above forecast levels for the remainder
of the quarter, which offset for the lower than anticipated gold
grades
- Approximately 48,000 tonnes of ore were mined from Sinter,
contributing to the higher than planned mill throughput.
Development of the Sinter deposit is progressing as per plan. The
paste fill project was started in May
2021 and is expected to be ready for the fourth quarter of
2021 at which point Sinter is expected to achieve its full
production capacity
Project Highlights
- At the Cubiro deposit, additional resources as well as the
installation of a temporary generator and improvements to
ventilation and pumping systems helped increase the development
productivity in the second quarter of 2021. The Cubiro ramp
development is on schedule for the first six months of 2021.
The permanent powerline and waterline construction are underway and
expected to be completed in the fourth quarter of 2021. The
development of Cubiro is expected to provide additional production
flexibility to the Pinos Altos
operations
- At Reyna de Plata East, the permitting process continues to be
on track. Environmental impact studies and the approval for the
land use change are ongoing. The tree cutting and site preparation
activities are underway
Drilling at Cubiro and Pinos Altos Deep Confirms and Extends
High-Grade Gold Mineralization
Exploration drilling in the first half of 2021 focused on two
targets: the Cubiro deposit, located nine kilometres northwest of
the Pinos Altos mine site; and
multiple gold deposits in the western depths of the Pinos Altos mine, as part of the Pinos Altos
Deep project. The Company drilled 57 exploration holes
(14,009 metres) on the Pinos Altos
property in the first half of 2021, comprised of 22 holes (5,742
metres) at Cubiro, 10 holes (2,811 metres) at Reyna de Plata and 25
holes (5,456 metres) at Pinos Altos Deep.
Exploration results from Pinos
Altos were last reported in the Company's news release dated
February 11, 2021.
At Cubiro, drilling focused on evaluating the westernmost
lateral and upward projection of the central portion of main Cubiro
corridor. Exploration was also conducted to confirm and
extend the North Cubiro structure laterally and at depth.
At the Pinos Altos Deep project, exploration and step out holes
were drilled in the easternmost extension of Santo Niño deposit,
with the aim of intersecting the structure 150 metres below the
lowest production level, and holes were drilled in the lateral and
down-dip projection of the Oberon de Weber deposit approximately 50
metres below the lowest production level.
Selected recent intercepts from drilling at the Cubiro deposit
and the Santo Niño, Oberon de Weber and Cerro Colorado deposits at the Pinos Altos mine are set out in the table and
composite longitudinal sections below.
Selected recent exploration drill results from the Cubiro
deposit and the Santo Niño, Oberon de Weber and Cerro Colorado deposits at the Pinos Altos mine
Drill hole
|
Deposit
|
From (m)
|
To (m)
|
Depth of midpoint
below surface (m)
|
Estimated true width
(m)
|
Gold grade (g/t)
(uncapped)
|
Gold grade (g/t)
(capped)
|
Silver grade (g/t)
(uncapped)
|
Silver grade (g/t)
(capped)
|
CBUG20-116
|
Cubiro
|
40.7
|
50.1
|
263
|
9.3
|
3.0
|
2.3
|
6
|
6
|
including
|
|
44.2
|
47.8
|
264
|
3.5
|
6.2
|
4.4
|
13
|
13
|
CBUG20-117
|
Cubiro
|
112.8
|
121.9
|
223
|
7.9
|
1.5
|
1.5
|
39
|
39
|
including
|
|
112.8
|
115.1
|
225
|
2.0
|
3.9
|
3.9
|
108
|
105
|
CBUG20-118
|
Cubiro
|
107.4
|
112.3
|
225
|
3.8
|
2.2
|
2.2
|
14
|
14
|
and
|
|
132.0
|
141.2
|
198
|
7.2
|
3.1
|
3.1
|
29
|
29
|
and
|
|
144.6
|
159.9
|
178
|
12.1
|
1.9
|
1.9
|
20
|
20
|
including
|
|
144.6
|
150.9
|
182
|
5.0
|
3.0
|
3.0
|
23
|
23
|
CBUG20-119
|
Cubiro
|
68.9
|
81.3
|
307
|
12.0
|
1.9
|
1.9
|
10
|
10
|
including
|
|
76.3
|
78.9
|
303
|
2.5
|
4.3
|
4.3
|
5
|
5
|
CBUG21-139
|
Cubiro
|
91.6
|
97.5
|
327
|
2.8
|
5.9
|
5.3
|
11
|
11
|
including
|
|
92.7
|
96.0
|
324
|
1.5
|
9.3
|
8.3
|
13
|
13
|
CBUG21-140
|
Cubiro
|
208.2
|
215.8
|
277
|
7.2
|
8.0
|
4.1
|
66
|
54
|
including
|
|
208.2
|
212.6
|
277
|
4.2
|
13.3
|
6.6
|
106
|
86
|
CBUG21-144
|
Cubiro
|
234.0
|
244.5
|
151
|
6.5
|
2.0
|
2.0
|
17
|
17
|
and
|
|
250.3
|
258.6
|
150
|
5.1
|
4.5
|
4.5
|
30
|
30
|
UG20-174
|
Cerro
Colorado
|
51.0
|
57.0
|
552
|
4.0
|
0.9
|
0.9
|
42
|
42
|
and
|
|
128.7
|
135.0
|
660
|
2.9
|
2.1
|
2.1
|
31
|
31
|
UG20-178
|
Santo Niño
|
58.5
|
63.0
|
610
|
3.7
|
3.0
|
3.0
|
81
|
81
|
and
|
|
82.0
|
94.8
|
647
|
10.4
|
4.1
|
4.1
|
32
|
32
|
UG20-181
|
Santo Niño
|
40.0
|
55.0
|
587
|
12.7
|
0.9
|
0.9
|
25
|
25
|
including
|
|
52.0
|
55.0
|
591
|
2.5
|
3.1
|
3.1
|
35
|
35
|
and
|
|
116.2
|
119.0
|
685
|
2.4
|
1.1
|
1.1
|
44
|
44
|
UG21-191
|
Oberon de
Weber
|
34.8
|
42.0
|
201
|
4.8
|
1.8
|
1.8
|
79
|
79
|
and
|
|
179.7
|
213.0
|
279
|
21.4
|
1.3
|
1.3
|
45
|
45
|
including
|
|
181.5
|
195.0
|
274
|
8.7
|
2.3
|
2.3
|
84
|
84
|
UG21-192
|
Santo Niño
|
48.0
|
73.6
|
664
|
19.6
|
2.3
|
2.3
|
75
|
68
|
including
|
|
55.5
|
58.0
|
662
|
2.0
|
9.9
|
9.5
|
266
|
200
|
including
|
|
62.9
|
73.6
|
671
|
8.2
|
2.6
|
2.6
|
85
|
85
|
and
|
|
80.5
|
105.0
|
703
|
18.8
|
0.8
|
0.8
|
49
|
49
|
UG21-193
|
Santo Niño
|
162.0
|
175.7
|
754
|
5.8
|
1.8
|
1.8
|
25
|
25
|
including
|
|
163.1
|
166.5
|
742
|
1.4
|
5.0
|
5.0
|
39
|
39
|
UG21-196
|
Oberon de
Weber
|
93.8
|
113.0
|
285
|
13.6
|
6.0
|
4.4
|
146
|
128
|
including
|
|
99.9
|
109.7
|
284
|
6.9
|
11.0
|
7.9
|
230
|
195
|
Cut-off value 0.30
g/t gold, maximum 3.0 metres internal dilution.
|
*Holes at the Cubiro
satellite deposit use a capping factor of 10 g/t gold and 200 g/t
silver.
|
[Pinos Altos Mine – Cubiro and Pinos Altos Composite
Longitudinal Sections]
At the Cubiro deposit, drilling from the underground ramp
intersected high-grade gold mineralization in the North Cubiro
structure in a series of parallel veins that provide an opportunity
to further explore laterally to the east and from ramp level to
surface. Highlight hole CBUG21-140 intersected 4.1 g/t gold
and 54 g/t silver over 7.2 metres at 277 metres depth, including
6.6 g/t gold and 86 g/t silver over 4.2 metres at 277 metres depth,
and extended mineralization by approximately 160 metres outside the
current mineral resource.
In the Cubiro Central zone, drilling intersected the projection
of the main structure and extended it by approximately 100 metres
to the west, with hole CBUG21-144 intersecting 2.0 g/t gold and 17
g/t silver over 6.5 metres at 151 metres depth and 4.5 g/t gold and
30 g/t silver over 5.1 metres at 150 metres depth.
At the Pinos Altos Deep project, drilling into the deep
projection of the Santo Niño structure confirmed the continuity of
high-grade gold mineralization by approximately 250 metres to the
east and 150 metres below the lowest production level.
Highlight hole UG21-192 intersected 2.3 g/t gold and 68 g/t silver
over 19.6 metres at 664 metres depth, including 9.5 g/t gold and
200 g/t silver over 2.0 metres at 662 metres depth.
Initial deep exploration drilling of the Oberon de Weber deposit
identified a possible extension of the structure to the west
approximately 100 to 150 metres below the lowest production
levels. Highlight hole UG21-196 intersecting 4.4 g/t gold and
128 g/t silver over 13.6 metres at 285 metres depth, including 7.9
g/t gold an 195 g/t silver over 6.9 metres at 285 metres depth.
The program to date at Pinos Altos Deep is confirming narrow
high-grade gold mineralization within broader, low-grade
mineralization, further demonstrating the potential to add to the
mine's mineral reserves.
During 2021 at Pinos Altos, the
Company expects to spend $3.9 million
for 20,000 metres of exploration drilling that will include
conversion drilling at the Pinos
Altos mine, and further exploration work at Cubiro, the
Pinos Altos Deep project and Reyna
East.
Creston Mascota – Residual Leaching Yields Better Than
Expected Recoveries; Production to Cease in September
The Creston Mascota heap leach open pit mine operated as a
satellite operation to the Pinos
Altos mine from late 2010 until open pit ore was depleted
during the third quarter of 2020; residual gold leaching is now
expected to continue into the third quarter of 2021.
Creston Mascota
Mine – Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
—
|
|
126
|
Tonnes of ore
processed per day
|
—
|
|
1,385
|
Gold grade
(g/t)
|
—
|
|
1.73
|
Gold production
(ounces)
|
3,228
|
|
9,646
|
Production costs per
tonne
|
$
|
—
|
|
$
|
76
|
Minesite costs per
tonne
|
$
|
—
|
|
$
|
74
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
622
|
|
$
|
995
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
341
|
|
$
|
694
|
With production coming only from residual leaching since the
start of 2021, gold production decreased in the second quarter of
2021 when compared to the prior-year period. No ore was
stacked on the heap leach and thus no production costs per tonne or
minesite costs per tonne are reported. Minor residual
leaching is expected to continue into the third quarter of 2021 and
cease by the end of the quarter.
In the second quarter of 2021, production costs per ounce
decreased when compared to the prior-year period primarily due to
lower overall costs as only residual heap leach and site
administration costs remain. Total cash costs per ounce in
the second quarter of 2021 decreased when compared to the
prior-year period due to the reasons described above and higher
by-product revenues from higher realized silver prices.
Creston Mascota
Mine – Operating Statistics
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
—
|
|
338
|
Tonnes of ore
processed per day
|
—
|
|
1,857
|
Gold grade
(g/t)
|
—
|
|
2.45
|
Gold production
(ounces)
|
7,480
|
|
27,830
|
Production costs per
tonne
|
$
|
—
|
|
$
|
63
|
Minesite costs per
tonne
|
$
|
—
|
|
$
|
62
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
592
|
|
$
|
770
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
257
|
|
$
|
517
|
With production coming only from residual leaching since the
start of 2021, gold production decreased in the first six months of
2021 when compared to the prior-year period. No ore was
stacked on the heap leach and thus no production costs per tonne or
minesite costs per tonne are reported.
In the first six months of 2021, production costs per ounce
decreased when compared to the prior-year period primarily due to
lower overall costs as only residual heap leach and site
administration costs remain. Total cash costs per ounce in
the first six months of 2021 decreased when compared to the
prior-year period due to the reasons described above.
In the second quarter of 2021, the major closure activities
progressed according to plan. On water management, the
diversion channels at El Castor are completed and the modelling for
long term water management is underway. The smoothing of the
slopes at the La Canada rock
storage facility are well advanced. Re-vegetation work at the
La Canada, El Castor and Las
Chivas rock storage facilities has also started.
La India – Low Water
Availability Resulted in Lower Than Expected Quarterly Gold Output;
Production Levels Expected to Normalize with Onset of Rainy Season
in the Third Quarter of 2021
The 100% owned La India mine in Sonora, Mexico, located approximately 70
kilometres northwest of the Company's Pinos Altos mine, achieved commercial
production in February 2014.
La India Mine –
Operating Statistics
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
1,745
|
|
776
|
Tonnes of ore
processed per day
|
19,176
|
|
8,527
|
Gold grade
(g/t)
|
0.46
|
|
0.65
|
Gold production
(ounces)
|
4,712
|
|
16,879
|
Production costs per
tonne
|
$
|
4
|
|
$
|
20
|
Minesite costs per
tonne
|
$
|
4
|
|
$
|
18
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,376
|
|
$
|
914
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,350
|
|
$
|
833
|
Gold production in the second quarter of 2021 decreased when
compared to the prior-year period primarily due to reduced
irrigation of the heap leach resulting from low local water
availability and from lower grades, partially offset by higher ore
stacking (in the prior year period, the operations were suspended
from April 2, 2020 to May 18, 2020 as required by the Decree).
Production costs per tonne in the second quarter of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach. Production costs per ounce in
the second quarter of 2021 increased when compared to the
prior-year period due to lower gold production, partially offset by
the reasons described above.
Minesite costs per tonne in the second quarter of 2021 decreased
when compared to the prior-year period primarily due to the
build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach. Total cash costs per ounce in
the second quarter of 2021 increased when compared to the
prior-year period due to lower gold production, partially offset by
lower minesite costs per tonne.
La India Mine –
Operating Statistics
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
June 30,
2021
|
|
June 30,
2020
|
Tonnes of ore
processed (thousands of tonnes)
|
3,387
|
|
2,310
|
Tonnes of ore
processed per day
|
18,713
|
|
12,692
|
Gold grade
(g/t)
|
0.45
|
|
0.71
|
Gold production
(ounces)
|
21,745
|
|
39,805
|
Production costs per
tonne
|
$
|
7
|
|
$
|
15
|
Minesite costs per
tonne
|
$
|
7
|
|
$
|
14
|
Production costs per
ounce of gold produced ($ per ounce)
|
$
|
1,040
|
|
$
|
891
|
Total cash costs per
ounce of gold produced ($ per ounce)
|
$
|
1,026
|
|
$
|
802
|
Gold production in the first six months of 2021 decreased when
compared to the prior-year period primarily due to reduced
irrigation of the heap leach starting in March 2021 resulting from low local water levels
and lower grades, partially offset by higher ore stacking (in the
prior-year period, the operations were suspended from April 2, 2020 to May 18,
2020 as required by the Decree).
Production costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach, the timing of inventory and by higher
stacking rates. Production costs per ounce in the first six
months of 2021 increased when compared to the prior-year period due
to lower gold production partially offset by the reasons described
above.
Minesite costs per tonne in the first six months of 2021
decreased when compared to the prior-year period primarily due to
the build-up of heap leach ore inventory resulting from reduced
irrigation of the heap leach and by higher stacking rates.
Total cash costs per ounce in the first six months of 2021
increased when compared to the prior-year period due to lower gold
production partially offset by the reasons described above.
Operational Highlights
- Irrigation of the heap leach pads was reduced starting in early
2021 to manage the low water levels at the minesite that resulted
from low rainfall in the La India region in 2020 and early 2021.
The accumulated fresh ore without irrigation is approximately 2.4
million tonnes at a gold grade of 0.46 g/t (or approximately 35,626
ounces of gold)
- The procurement and installation of the equipment required for
the upgrade of the water pumping system at Chipriona were completed
in early July. The system is ready to operate and rebuild the
water reserves with the start of the rainy season
- An irrigation plan has been established to gradually saturate
the fresh ore stacked in the first six months of 2021 that has not
yet been irrigated. The plan is expected to result in a
gradual re-build of the pregnant solution and subsequent gold
production. With the onset of the rainy season in
June 2021, leaching activities are
expected to return to more normalized levels by the end of the
third quarter of 2021 and to exceed the prior forecast in the
fourth quarter of 2021
Project Highlights
- The La India heap leach pad construction phase III (North Zone
pit) is approximately 90% complete and it is expected to be
completed in the third quarter of 2021
- El Realito road construction (3.7 kilometres) started in the
second quarter of 2021 and is expected to provide access to start
the pre-stripping activities at the end of the third quarter of
2021. The construction of the haulage road is expected to be
completed by year-end
Regional Exploration at La India Remains Focused on Chipriona
Deposit and Other Sulphide Opportunities
In regional exploration at La India in the first half of 2021,
the Company continued its program of infill and step-out drilling
of the gold- and silver-rich Chipriona polymetallic sulphide
deposit and associated mineralized veins within the
3.2-kilometre-long Chipriona structural corridor as well as other
sulphide targets near the La India oxide gold operations. The
Chipriona deposit is located approximately one kilometre north of
the La India mine.
At December 31, 2020, the
Chipriona open pit deposit had indicated mineral resources of
44,000 ounces of gold, 2.0 million ounces of silver and 16,600
tonnes of zinc (1.3 million tonnes grading 1.08 g/t gold, 49.81 g/t
silver and 1.31% zinc) and inferred mineral resources of 278,000
ounces of gold, 31.1 million ounces of silver and 103,900 tonnes of
zinc (12.8 million tonnes grading 0.68 g/t gold, 75.59 g/t silver
and 0.81% zinc).
Exploration results from Chipriona were last reported in the
Company's news release dated February 11,
2021.
In the first half of 2021, the Company drilled 153 holes
totalling 17,175 metres into shallow, open-pit targets at the La
India Complex, comprised of 54 holes (8,913 metres) at Chipriona,
57 holes (4,995 metres) at the El
Realito deposit and 42 holes (3,267 metres) at the Main Zone
deposit.
Selected recent drill intercepts from the Chipriona deposit are
set out in the table and plan map below. The drill hole
coordinates are set out in the Appendix of this news release.
Selected recent drill intercepts from the Chipriona deposit
at La India property
Drill Hole
|
From (m)
|
To (m
|
Depth of midpoint
below surface (m)
|
Estimated true width
(m)
|
Gold grade (g/t)
(uncapped)
|
Silver grade (g/t)
(uncapped
|
Zinc grade
(%)
|
Lead grade
(%)
|
CHP21-05
|
82.0
|
96.0
|
53
|
12.1
|
2.2
|
151
|
0.4
|
0.6
|
and
|
99.0
|
112.0
|
62
|
11.3
|
2.5
|
624
|
0.3
|
3.1
|
and
|
153.0
|
163.0
|
97
|
8.7
|
2.3
|
288
|
4.0
|
0.8
|
and
|
178.8
|
195.0
|
130
|
14.0
|
1.7
|
83
|
0.6
|
0.5
|
CHP21-09
|
204.0
|
210.6
|
164
|
5.9
|
0.5
|
284
|
1.6
|
0.8
|
CHP21-12
|
24.0
|
28.0
|
33
|
3.5
|
1.5
|
201
|
1.1
|
0.6
|
CHP21-26
|
4.0
|
39.3
|
20
|
28.9
|
0.6
|
70
|
2.0
|
1.2
|
including
|
14.0
|
22.0
|
17
|
6.6
|
0.7
|
79
|
3.6
|
1.6
|
CHP21-27
|
65.2
|
84.0
|
70
|
17.0
|
0.7
|
188
|
3.5
|
2.1
|
and
|
113.4
|
123.6
|
110
|
9.2
|
0.7
|
358
|
0.6
|
0.9
|
CHP21-29
|
75.8
|
78.8
|
66
|
2.3
|
2.7
|
637
|
0.5
|
0.2
|
CHP21-34
|
174.0
|
176.7
|
91
|
2.2
|
2.2
|
148
|
4.6
|
2.7
|
CHP21-42
|
36.6
|
52.2
|
35
|
14.7
|
1.3
|
176
|
0.3
|
0.4
|
and
|
75.0
|
81.0
|
49
|
5.6
|
0.3
|
78
|
0.3
|
0.1
|
CHP21-43
|
50.0
|
58.2
|
51
|
7.7
|
0.2
|
165
|
0.5
|
0.2
|
and
|
69.3
|
78.0
|
59
|
8.2
|
0.4
|
112
|
0.2
|
0.1
|
and
|
99.0
|
106.0
|
73
|
6.6
|
0.1
|
59
|
1.9
|
1.5
|
and
|
148.0
|
153.0
|
87
|
4.7
|
0.1
|
46
|
1.2
|
0.2
|
and
|
159.0
|
167.0
|
93
|
7.5
|
0.1
|
58
|
1.8
|
1.0
|
CHP21-44
|
12.0
|
59.0
|
24
|
44.2
|
0.9
|
57
|
1.3
|
0.7
|
[La India Mine – Chipriona Geology Plan Map]
Mineral resource conversion and expansion drilling at Chipriona
in the first half of 2021 focused on evaluating parallel
mineralized structures within the major corridor and testing the
down-dip projection of the corridor north the Chipriona pit
outline.
Infill drilling in the northernmost portion of the Chipriona
deposit was highlighted by hole CHP21-42 which intersected 14.7
metres grading 1.3 g/t gold and 176 g/t silver at 35 metres depth
and 5.6 metres grading 0.3 g/t gold and 78 g/t silver at 49 metres
depth.
In the southern portion of the Chipriona deposit, drill hole
CHP21-05 intersected four wide, closely spaced mineralized vein
structures at shallow depth: 12.1 metres grading 2.2 g/t gold and
151 g/t silver at 53 metres depth; 11.3 metres grading 2.5 g/t gold
and 624 g/t silver at 62 metres depth; 8.7 metres grading 2.3 g/t
gold, 288 g/t silver and 4.0% zinc at 97 metres depth; and 14.0
metres grading 1.7 g/t gold and 83 g/t silver at 130 metres
depth.
With the continued success in conversion and step-out drilling
this year at Chipriona, the Company expects an increase in mineral
resources estimated at year-end 2021.
The significant polymetallic mineralization being intersected
near surface at Chipriona over substantial widths continues to
suggest the potential for bulk mining of lower-grade mineralization
in stockwork zones that surround high-grade feeder zones.
An internal preliminary economic assessment of the Chipriona
sulphide project that will include a metallurgical study is now
expected to be completed in the second half of 2021.
At the La India mine property in 2021, the Company expects to
spend $4.0 million for 20,000 metres
of drilling to grow and infill the Chipriona polymetallic sulphide
deposit and investigate other near-surface sulphide and oxide
targets.
Santa Gertrudis – 2021
Exploration Program Focused on Increasing Mineral Resources and
Targeting New Discoveries
Agnico Eagle acquired its 100% interest in the Santa Gertrudis gold property in November
2017. The 44,145-hectare property is located approximately
180 kilometres north of Hermosillo
in Sonora, Mexico.
The property was the site of historic heap-leach operations that
produced approximately 565,000 ounces of gold at a grade of 2.1 g/t
gold between 1991 and 2000. The property has substantial
surface infrastructure, including pre-stripped pits, haul roads,
water sources and several buildings.
In the first half of 2021, drilling at Santa Gertrudis totaled 63 holes (27,693
metres) focused on advancing the Amelia, Santa Teresa, El
Toro and other zones. Exploration drilling of the
Amelia deposit is extending and validating the lateral continuity
of high-grade gold and silver intercepts, with highlights including
2.7 g/t gold and 11 g/t silver over 33.9 metres at 395 metres
depth, which includes 5.7 g/t gold and 15 g/t silver over 8.3
metres at 402 metres depth.
Drill results for the Santa
Gertrudis project were last reported in the Company's news
release dated July 8, 2021.
Exploration is ongoing at Santa
Gertrudis with $11 million
budgeted for 30,000 metres of drilling in 2021, focused on
expanding the mineral resources, testing new targets and continuing
metallurgical studies. The mineral resource for the project
will be updated for the year-end of 2021.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its operating mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States and Colombia. The
Company and its shareholders have full exposure to gold prices due
to its long-standing policy of no forward gold sales. Agnico
Eagle has declared a cash dividend every year since 1983.
Further Information
For further information regarding Agnico Eagle, contact Investor
Relations at info@agnicoeagle.com or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including "total
cash costs per ounce", "all-in sustaining costs per ounce",
"minesite costs per tonne", "adjusted net income", "operating
margin" and "free cash flow" that are not standardized measures
under IFRS. These measures may not be comparable to similar
measures reported by other gold mining companies. For a
reconciliation of these measures to the most directly comparable
financial information reported in the consolidated financial
statements prepared in accordance with IFRS, other than adjusted
net income and free cash flow, see "Reconciliation of Non-GAAP
Financial Performance Measures" below.
The total cash costs per ounce of gold produced is reported on
both a by-product basis (deducting by-product metal revenues from
production costs) and co-product basis (without deducting
by-product metal revenues). The total cash costs per ounce of
gold produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income (loss) for by-product revenues, inventory production costs,
smelting, refining and marketing charges and other adjustments, and
then dividing by the number of ounces of gold produced. The
total cash costs per ounce of gold produced on a co-product basis
is calculated in the same manner as the total cash costs per ounce
of gold produced on a by-product basis, except that no adjustment
is made for by-product metal revenues. Accordingly, the
calculation of total cash costs per ounce of gold produced on a
co-product basis does not reflect a reduction in production costs
or smelting, refining and marketing charges associated with the
production and sale of by-product metals. The total cash
costs per ounce of gold produced is intended to provide information
about the cash-generating capabilities of the Company's mining
operations. Management also uses this measure to monitor the
performance of the Company's mining operations. As market
prices for gold are quoted on a per ounce basis, using the total
cash costs per ounce of gold produced on a by-product basis measure
allows management to assess a mine's cash-generating capabilities
at various gold prices.
AISC per ounce of gold produced on a by-product basis are
calculated as the aggregate of total cash costs on a by-product
basis, sustaining capital expenditures (including capitalized
exploration), general and administrative expenses (including stock
options), lease payments related to sustaining assets and
reclamation expenses, and then dividing by the number of ounces of
gold produced. The AISC per ounce of gold produced on a
co-product basis is calculated in the same manner as the AISC per
ounce of gold produced on a by-product basis, except that the total
cash costs on a co-product basis are used, meaning no adjustment is
made for by-product metal revenues. AISC per ounce is used to
show the full cost of gold production from current
operations. Management is aware that these per ounce measures
of performance can be affected by fluctuations in foreign exchange
rates and, in the case of total cash costs per ounce and AISC of
gold produced on a by-product basis, by-product metal prices.
Management compensates for these inherent limitations by using
these measures in conjunction with minesite costs per tonne
(discussed below) as well as other data prepared in accordance with
IFRS.
The World Gold Council ("WGC") is a non-regulatory market
development organization for the gold industry. Although the
WGC is not a mining industry regulatory organization, it has worked
closely with its member companies to develop relevant non-GAAP
measures. The Company follows the guidance on all-in
sustaining costs released by the WGC in November 2018.
Adoption of the AISC metric is voluntary and, notwithstanding the
Company's adoption of the WGC's guidance, AISC per ounce of gold
produced reported by the Company may not be comparable to data
reported by other gold mining companies. The Company believes
that this measure provides helpful information about operating
performance. However, this non-GAAP measure should be
considered together with other data prepared in accordance with
IFRS as it is not necessarily indicative of operating costs or cash
flow measures prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income (loss)
for inventory production costs and other adjustments, and then
dividing by tonnage of ore processed. As the total cash costs
per ounce of gold produced can be affected by fluctuations in
by–product metal prices and foreign exchange rates, management
believes that minesite costs per tonne provide additional
information regarding the performance of mining operations,
eliminating the impact of varying production levels.
Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated
based on the net realizable value of each tonne mined, in order to
be economically viable the estimated revenue on a per tonne basis
must be in excess of the minesite costs per tonne. Management
is aware that this per tonne measure of performance can be impacted
by fluctuations in processing levels and compensates for this
inherent limitation by using this measure in conjunction with
production costs prepared in accordance with IFRS.
Adjusted net income is calculated by adjusting the net income as
recorded in the consolidated statements of income (loss) for
non-recurring, unusual and other items, including foreign currency
translation gains and losses, mark to market adjustments,
non-recurring gains and losses and unrealized gains and losses on
financial instruments. Management uses adjusted net income to
evaluate the underlying operating performance of the Company and to
assist with the planning and forecasting of future operating
results. Management believes that adjusted net income is a
useful measure of performance because foreign currency translation
gains and losses, mark-to-market adjustments, non-recurring gains
and losses and unrealized gains and losses on financial instruments
do not reflect the underlying operating performance of the Company
and may not be indicative of future operating results.
Operating margin is not a recognized measure under IFRS and this
data may not be comparable to data presented by other gold
producers. This measure is calculated by excluding the
following from net income (loss) as recorded in the consolidated
financial statements: Income and mining taxes expense; other
expenses (income); foreign currency translation (gain) loss; gain
(loss) on derivative financial instruments; finance costs; general
and administrative expenses; amortization of property, plant and
mine development; exploration and corporate development expenses;
and impairment losses (reversals). The Company believes that
operating margin is a useful measure that represents the operating
performance of its mines associated with the ongoing production and
sale of gold and by-product metals. Management uses this
measure internally to plan and forecast future operating
results. This measure is intended to provide investors with
additional information about the Company's underlying operating
results and should be evaluated in conjunction with other data
prepared in accordance with IFRS.
Free cash flow is calculated by deducting additions to property,
plant and mine development from cash provided by operating
activities including changes in non-cash working capital
balances. Management uses free cash flow to assess the
availability of cash, after funding operations and capital
expenditures, to operate the business without additional borrowing
or drawing down on the Company's existing cash balance.
Management also performs sensitivity analyses in order to
quantify the effects of fluctuating foreign exchange rates and
metal prices. This news release also contains information as
to estimated future total cash costs per ounce, AISC per ounce and
minesite costs per tonne. The estimates are based upon the
total cash costs per ounce, AISC per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at its mines
and projects and, consistent with the reconciliation of these
actual costs referred to above, do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time as each project is developed and
mined. It is therefore not practicable to reconcile these
forward-looking non-GAAP financial measures to the most comparable
IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
July 28, 2021. Certain
statements contained in this news release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" under the provisions of Canadian
provincial securities laws and are referred to herein as
"forward-looking statements". All statements, other than
statements of historical fact, that address circumstances, events,
activities or developments that could, or may or will occur are
forward looking statements. When used in this news release,
the words "anticipate", "could", "estimate", "expect", "forecast",
"future", "plan", "possible", "potential", "will" and similar
expressions are intended to identify forward-looking
statements. Such statements include without limitation:
statements regarding the impact of the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19 on the Company's
future operations, including its employees and overall business;
the Company's forward-looking guidance, including metal production,
estimated ore grades, recovery rates, project timelines, drilling
results, life of mine estimates, total cash costs per ounce, AISC
per ounce, minesite costs per tonne, other expenses, cash flows and
free cash flow; the estimated timing and conclusions of technical
studies and evaluations; the methods by which ore will be extracted
or processed; statements concerning the Company's expansion plans
at Kittila, Meliadine Phase 2, the Amaruq underground project and
the Odyssey project, including the timing, funding, completion and
commissioning thereof and production therefrom; statements about
the Company's plans at the Hope Bay mine; statements concerning
other expansion projects, recovery rates, mill throughput,
optimization and projected exploration, including costs and other
estimates upon which such projections are based; statements
regarding timing and amounts of capital expenditures, other
expenditures and other cash needs, and expectations as to the
funding thereof; estimates of future mineral reserves, mineral
resources, mineral production and sales; the projected development
of certain ore deposits, including estimates of exploration,
development and production and other capital costs and estimates of
the timing of such exploration, development and production or
decisions with respect to such exploration, development and
production; statements regarding anticipated cost inflation and its
effect on the Company's costs; estimates of mineral reserves and
mineral resources and the effect of drill results on future mineral
reserves and mineral resources; statements regarding the Company's
ability to obtain the necessary permits and authorizations in
connection with its proposed or current exploration, development
and mining operations and the anticipated timing thereof;
statements regarding anticipated future exploration; the
anticipated timing of events with respect to the Company's mine
sites; statements regarding the sufficiency of the Company's cash
resources; statements regarding future activity with respect to the
Company's unsecured revolving bank credit facility; future dividend
amounts and payment dates; and statements regarding anticipated
trends with respect to the Company's operations, exploration and
the funding thereof. Such statements reflect the Company's
views as at the date of this news release and are subject to
certain risks, uncertainties and assumptions, and undue reliance
should not be placed on such statements. Forward-looking
statements are necessarily based upon a number of factors and
assumptions that, while considered reasonable by Agnico Eagle as of
the date of such statements, are inherently subject to significant
business, economic and competitive uncertainties and
contingencies. The material factors and assumptions used in
the preparation of the forward looking statements contained herein,
which may prove to be incorrect, include, but are not limited to,
the assumptions set forth herein and in management's discussion and
analysis ("MD&A") and the Company's Annual Information Form
("AIF") for the year ended December 31,
2020 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2020 ("Form 40-F") filed
with the U.S. Securities and Exchange Commission (the "SEC") as
well as: that governments, the Company or others do not take
additional measures in response to the COVID-19 pandemic or
otherwise that, individually or in the aggregate, materially affect
the Company's ability to operate its business; that cautionary
measures taken in connection with the COVID-19 pandemic do not
affect productivity; that measures taken relating to, or other
effects of, the COVID-19 pandemic do not affect the Company's
ability to obtain necessary supplies and deliver them to its mine
sites; that there are no significant disruptions affecting
operations; that production, permitting, development, expansion and
the ramp up of operations at each of Agnico Eagle's properties
proceeds on a basis consistent with current expectations and plans;
that the relevant metal prices, foreign exchange rates and prices
for key mining and construction supplies will be consistent with
Agnico Eagle's expectations; that Agnico Eagle's current estimates
of mineral reserves, mineral resources, mineral grades and metal
recovery are accurate; that there are no material delays in the
timing for completion of ongoing growth projects; that seismic
activity at the Company's operations at LaRonde, Goldex and other
properties is as expected by the Company; that the Company's
current plans to optimize production are successful; and that there
are no material variations in the current tax and regulatory
environment. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks
include, but are not limited to: the extent and manner to which
COVID-19, and measures taken by governments, the Company or others
to attempt to reduce the spread of COVID-19, may affect the
Company, whether directly or through effects on employee health,
workforce productivity and availability (including the ability to
transport personnel to the Meadowbank Complex, Meliadine mine and
the Hope Bay mine which operate as fly-in/fly-out camps), travel
restrictions, contractor availability, supply availability, ability
to sell or deliver gold dore bars or concentrate, availability of
insurance and the cost thereof, the ability to procure inputs
required for the Company's operations and projects or other aspects
of the Company's business; uncertainties with respect to the effect
on the global economy associated with the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19, any of which could
negatively affect financial markets, including the trading price of
the Company's shares and the price of gold, and could adversely
affect the Company's ability to raise capital; the volatility of
prices of gold and other metals; uncertainty of mineral reserves,
mineral resources, mineral grades and mineral recovery estimates;
uncertainty of future production, project development, capital
expenditures and other costs; foreign exchange rate fluctuations;
financing of additional capital requirements; cost of exploration
and development programs; seismic activity at the Company's
operations, including the LaRonde Complex and Goldex mine; mining
risks; community protests, including by First Nations groups; risks
associated with foreign operations; governmental and environmental
regulation; the volatility of the Company's stock price; and risks
associated with the Company's currency, fuel and by-product metal
derivative strategies. For a more detailed discussion of such
risks and other factors that may affect the Company's ability to
achieve the expectations set forth in the forward-looking
statements contained in this news release, see the AIF and MD&A
filed on SEDAR at www.sedar.com and included in the Form 40-F
filed on EDGAR at www.sec.gov, as well as the Company's other
filings with the Canadian securities regulators and the SEC.
Other than as required by law, the Company does not intend, and
does not assume any obligation, to update these forward-looking
statements.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI
43-101"). These standards are similar to those used by SEC
Industry Guide No. 7, as interpreted by the SEC staff.
However, the definitions in NI 43-101 differ in certain respects
from those under SEC Industry Guide 7. Accordingly, mineral
reserve and mineral resource information contained in this news
release may not be comparable to similar information disclosed by
United States companies.
Under the SEC's Industry Guide 7, mineralization may not be
classified as a "reserve" unless the determination has been made
that the mineralization could be economically and legally produced
or extracted at the time the reserve determination is made.
For United States reporting
purposes, the SEC has adopted amendments to its disclosure rules
(the "SEC Modernization Rules") to modernize the mining property
disclosure requirements for issuers whose securities are registered
with the SEC under the United States Securities Exchange Act of
1934, as amended (the "Exchange Act"), which became effective
February 25, 2019. The SEC
Modernization Rules more closely align the SEC's disclosure
requirements and policies for mining properties with current
industry and global regulatory practices and standards, including
NI 43-101, and replace the historical property disclosure
requirements for mining registrants that were included in SEC
Industry Guide 7. Issuers must begin to comply with the SEC
Modernization Rules in their first fiscal year beginning on or
after January 1, 2021, though
Canadian issuers that report in the
United States using the Multijurisdictional Disclosure
System ("MJDS") may still use NI 43-101 rather than the SEC
Modernization Rules when using the SEC's MJDS registration
statement and annual report forms.
As a result of the adoption of the SEC Modernization Rules, the
SEC now recognizes estimates of "measured mineral resources",
"indicated mineral resources" and "inferred mineral
resources." In addition, the SEC has amended definitions of
"proven mineral reserves" and "probable mineral reserves" in the
SEC Modernization Rules, with definitions that are substantially
similar to those used in NI 43-101.
United States investors are
cautioned that while the SEC now recognizes "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources", investors should not assume that any part or all of the
mineral deposits in these categories will ever be converted into a
higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Under Canadian
regulations, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in
limited circumstances. Investors are cautioned not to
assume that any "measured mineral resources", "indicated mineral
resources", or "inferred mineral resources" that the Company
reports in this news release are or will be economically or legally
mineable.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all
of an inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in this
news release are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals
contained in mineral reserves in its calculation of contained
ounces and mineral reserves are not reported as a subset of mineral
resources.
Scientific and Technical Information
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Daniel Paré, P.Eng., Vice-President
Operations – Eastern Canada;
relating to Nunavut operations has
been approved by Dominique Girard, Eng., Senior Vice-President,
Operations – Canada and
Europe; relating to Finland operations has been approved by
Francis Brunet, Eng., Corporate Director, Business Strategy;
relating to Southern Business operations has been approved by Marc
Legault, Eng., Senior Vice-President, Operations – U.S.A. & Latin
America; and relating to exploration has been approved by
Guy Gosselin, Eng. and P.Geo., Senior Vice-President, Exploration,
each of whom is a "Qualified Person" for the purposes of NI
43-101.
The scientific and technical information relating to Agnico
Eagle's mineral reserves and mineral resources contained herein
(other than the Canadian Malartic mine) has been approved by
Dyane Duquette, P.Geo., Corporate
Director, Reserves Development of the Company; relating to mineral
reserves and mineral resources at the Canadian Malartic mine and
other Partnership projects such as the Odyssey project (including
East Gouldie, East Malartic and
Odyssey), has been approved by Sylvie Lampron, Eng., Senior Project
Mine Engineer at Canadian Malartic
Corporation (for engineering) and Pascal Lehouiller, P.Geo., Senior Resource
Geologist at Canadian Malartic
Corporation (for geology), each of whom is a "Qualified
Person" for the purposes of NI 43-101.
Assumptions used for the December 31,
2020 mineral reserves estimate at all mines and advanced
projects reported by the Company
|
Metal
prices
|
Exchange
rates
|
|
Gold
(US$/oz)
|
Silver
(US$/oz)
|
Copper
(US$/lb)
|
Zinc
(US$/lb)
|
C$ per
US$1.00
|
Mexican Peso per
US$1.00
|
US$ per
€1.00
|
Operations and
projects
|
$1,250
|
$17
|
$2.75
|
$1.00
|
$1.30
|
MXP18.00
|
EUR1.15
|
Hammond
Reef
|
$1,350
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
$1.30
|
Not
applicable
|
Not
applicable
|
Upper
Beaver
|
$1,200
|
Not
applicable
|
$2.75
|
Not
applicable
|
$1.25
|
Not
applicable
|
Not
applicable
|
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources". Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a
measured and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified. The mineral reserves presented in this news
release are separate from and not a portion of the mineral
resources.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to
a probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors, together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the Company's material
mineral projects that is required by NI 43-101, sections 3.2 and
3.3 and paragraphs 3.4(a), (c) and (d), as well as other
information, can be found in Technical Reports, which may be found
at www.sedar.com. Other important operating information can
be found in the Company's AIF, MD&A and Form 40-F.
Property/Project
name and location
|
Date of most
recent Technical Report
(NI 43-101) filed on SEDAR
|
LaRonde, LaRonde Zone
5 & Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
December 31,
2020
|
Kittila, Kuotko and
Kylmakangas, Finland
|
March 4,
2010
|
Meadowbank Gold
Complex including the Amaruq Satellite Mine
Development, Nunavut, Canada
|
February 14,
2018
|
Meliadine, Nunavut,
Canada
|
February 11,
2015
|
APPENDIX – EXPLORATION DRILL COLLAR COORDINATES
La Chipriona exploration drill collar coordinates
La
India
|
Drill Collar
Coordinates*
|
Drill hole
|
UTM North
|
UTM East
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
CHP21-05
|
3180158
|
707284
|
1,525
|
225
|
-45
|
201
|
CHP21-09
|
3180807
|
706798
|
1,570
|
225
|
-50
|
300
|
CHP21-12
|
3181090
|
706334
|
1,519
|
225
|
-45
|
177
|
CHP21-26
|
3180510
|
706998
|
1,489
|
225
|
-50
|
111
|
CHP21-27
|
3180588
|
706816
|
1,523
|
225
|
-45
|
192
|
CHP21-29
|
3180782
|
706631
|
1,609
|
225
|
-45
|
150
|
CHP21-34
|
3180313
|
707163
|
1,544
|
225
|
-45
|
195
|
CHP21-42
|
3181295
|
706543
|
1,529
|
225
|
-45
|
120
|
CHP21-43
|
3180925
|
706501
|
1,627
|
225
|
-45
|
201
|
CHP21-44
|
3180350
|
707086
|
1,554
|
225
|
-50
|
195
|
*Coordinate System
UTM NAD27 12
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Operating
margin(i) by mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
115,617
|
|
|
$
|
60,954
|
|
|
$
|
209,345
|
|
|
$
|
106,148
|
|
LaRonde Zone 5
mine
|
15,252
|
|
|
11,007
|
|
|
27,850
|
|
|
21,858
|
|
Goldex mine
|
37,881
|
|
|
22,840
|
|
|
76,620
|
|
|
58,000
|
|
Meadowbank
Complex
|
55,762
|
|
|
(12,422)
|
|
|
105,712
|
|
|
(8,609)
|
|
Meliadine
mine
|
97,778
|
|
|
49,207
|
|
|
198,739
|
|
|
106,433
|
|
Hope Bay
mine
|
14,396
|
|
|
—
|
|
|
25,626
|
|
|
—
|
|
Canadian Malartic
mine(ii)
|
109,579
|
|
|
45,502
|
|
|
213,327
|
|
|
102,548
|
|
Kittila
mine
|
51,438
|
|
|
59,089
|
|
|
110,141
|
|
|
100,999
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
31,905
|
|
|
14,585
|
|
|
58,331
|
|
|
42,642
|
|
Creston Mascota
mine
|
5,171
|
|
|
11,231
|
|
|
12,805
|
|
|
28,822
|
|
La India
mine
|
4,369
|
|
|
14,788
|
|
|
22,644
|
|
|
33,716
|
|
Total operating
margin(i)
|
539,148
|
|
|
276,781
|
|
|
1,061,140
|
|
|
592,557
|
|
Amortization of
property, plant and mine development
|
175,309
|
|
|
129,465
|
|
|
356,424
|
|
|
282,974
|
|
Exploration,
corporate and other
|
81,592
|
|
|
29,765
|
|
|
192,881
|
|
|
168,701
|
|
Income before income
and mining taxes
|
282,247
|
|
|
117,551
|
|
|
511,835
|
|
|
140,882
|
|
Income and mining
taxes expense
|
92,686
|
|
|
12,250
|
|
|
186,126
|
|
|
57,146
|
|
Net income for the
period
|
$
|
189,561
|
|
|
$
|
105,301
|
|
|
$
|
325,709
|
|
|
$
|
83,736
|
|
Net income per
share — basic
|
$
|
0.78
|
|
|
$
|
0.44
|
|
|
$
|
1.34
|
|
|
$
|
0.35
|
|
Net income per
share — diluted
|
$
|
0.77
|
|
|
$
|
0.43
|
|
|
$
|
1.33
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
406,921
|
|
|
$
|
162,648
|
|
|
$
|
763,308
|
|
|
$
|
326,006
|
|
Cash used in
investing activities
|
$
|
(197,613)
|
|
|
$
|
(177,738)
|
|
|
$
|
(725,481)
|
|
|
$
|
(355,904)
|
|
Cash (used in)
provided by financing activities
|
$
|
(64,161)
|
|
|
$
|
(914,418)
|
|
|
$
|
(164,295)
|
|
|
$
|
40,412
|
|
|
|
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
|
1,814
|
|
|
$
|
1,726
|
|
|
$
|
1,797
|
|
|
$
|
1,643
|
|
Silver
(per ounce)
|
$
|
27.01
|
|
|
$
|
17.11
|
|
|
$
|
26.55
|
|
|
$
|
16.22
|
|
Zinc
(per tonne)
|
$
|
2,843
|
|
|
$
|
1,920
|
|
|
$
|
2,795
|
|
|
$
|
2,188
|
|
Copper
(per tonne)
|
$
|
10,902
|
|
|
$
|
5,074
|
|
|
$
|
9,945
|
|
|
$
|
5,257
|
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
80,681
|
|
|
62,266
|
|
|
156,070
|
|
|
117,489
|
|
LaRonde Zone 5
mine
|
16,842
|
|
|
12,051
|
|
|
34,531
|
|
|
26,515
|
|
Goldex mine
|
34,659
|
|
|
23,142
|
|
|
69,309
|
|
|
57,025
|
|
Meadowbank
Complex
|
85,899
|
|
|
16,417
|
|
|
165,864
|
|
|
65,758
|
|
Meliadine
mine
|
96,694
|
|
|
59,375
|
|
|
192,820
|
|
|
129,350
|
|
Hope Bay
mine
|
25,308
|
|
|
—
|
|
|
37,567
|
|
|
—
|
|
Canadian Malartic
mine(ii)
|
92,106
|
|
|
56,785
|
|
|
181,656
|
|
|
121,548
|
|
Kittila
mine
|
53,263
|
|
|
60,623
|
|
|
113,979
|
|
|
109,920
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
32,614
|
|
|
13,880
|
|
|
61,789
|
|
|
47,190
|
|
Creston Mascota
mine
|
3,228
|
|
|
9,646
|
|
|
7,480
|
|
|
27,830
|
|
La India
mine
|
4,712
|
|
|
16,879
|
|
|
21,745
|
|
|
39,805
|
|
Total gold
(ounces)
|
526,006
|
|
|
331,064
|
|
|
1,042,810
|
|
|
742,430
|
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
199
|
|
|
125
|
|
|
402
|
|
|
285
|
|
LaRonde Zone 5
mine
|
3
|
|
|
2
|
|
|
6
|
|
|
5
|
|
Goldex mine
|
1
|
|
|
—
|
|
|
1
|
|
|
1
|
|
Meadowbank
Complex
|
23
|
|
|
2
|
|
|
47
|
|
|
22
|
|
Meliadine
mine
|
8
|
|
|
6
|
|
|
15
|
|
|
12
|
|
Hope Bay
mine
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
Canadian Malartic
mine(ii)
|
69
|
|
|
82
|
|
|
151
|
|
|
179
|
|
Kittila
mine
|
2
|
|
|
3
|
|
|
5
|
|
|
6
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
307
|
|
|
212
|
|
|
680
|
|
|
729
|
|
Creston Mascota
mine
|
32
|
|
|
150
|
|
|
68
|
|
|
429
|
|
La India
mine
|
7
|
|
|
17
|
|
|
23
|
|
|
37
|
|
Total silver
(thousands of ounces)
|
653
|
|
|
599
|
|
|
1,400
|
|
|
1,705
|
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,736
|
|
|
567
|
|
|
4,603
|
|
|
1,077
|
|
Copper
(tonnes)
|
779
|
|
|
656
|
|
|
1,531
|
|
|
1,405
|
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Payable metal
sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
86,844
|
|
|
56,283
|
|
|
162,129
|
|
|
94,556
|
|
LaRonde Zone 5
mine
|
16,168
|
|
|
11,712
|
|
|
30,482
|
|
|
25,970
|
|
Goldex mine
|
34,993
|
|
|
22,628
|
|
|
69,351
|
|
|
57,368
|
|
Meadowbank
Complex
|
83,915
|
|
|
9,112
|
|
|
160,196
|
|
|
67,693
|
|
Meliadine
mine
|
94,163
|
|
|
64,130
|
|
|
192,512
|
|
|
135,109
|
|
Hope Bay
mine
|
17,731
|
|
|
—
|
|
|
37,952
|
|
|
—
|
|
Canadian Malartic
mine(ii)(iv)
|
89,372
|
|
|
47,384
|
|
|
172,928
|
|
|
112,284
|
|
Kittila
mine
|
54,790
|
|
|
59,235
|
|
|
114,387
|
|
|
113,485
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
34,672
|
|
|
16,661
|
|
|
62,285
|
|
|
51,658
|
|
Creston Mascota
mine
|
3,356
|
|
|
10,484
|
|
|
8,234
|
|
|
26,892
|
|
La India
mine
|
5,739
|
|
|
17,385
|
|
|
24,573
|
|
|
40,882
|
|
Total gold
(ounces)
|
521,743
|
|
|
315,014
|
|
|
1,035,029
|
|
|
725,897
|
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
193
|
|
|
121
|
|
|
392
|
|
|
296
|
|
LaRonde Zone 5
mine
|
3
|
|
|
3
|
|
|
6
|
|
|
5
|
|
Goldex mine
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Meadowbank
Complex
|
26
|
|
|
2
|
|
|
45
|
|
|
24
|
|
Meliadine
mine
|
9
|
|
|
5
|
|
|
17
|
|
|
13
|
|
Canadian Malartic
mine(ii)(iv)
|
68
|
|
|
59
|
|
|
135
|
|
|
170
|
|
Kittila
mine
|
3
|
|
|
2
|
|
|
5
|
|
|
5
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
331
|
|
|
258
|
|
|
692
|
|
|
818
|
|
Creston Mascota
mine
|
41
|
|
|
164
|
|
|
91
|
|
|
427
|
|
La India
mine
|
7
|
|
|
14
|
|
|
26
|
|
|
36
|
|
Total silver
(thousands of ounces):
|
682
|
|
|
629
|
|
|
1,410
|
|
|
1,795
|
|
|
|
|
|
|
|
|
|
Zinc
(tonnes)
|
2,875
|
|
|
175
|
|
|
5,535
|
|
|
1,833
|
|
Copper
(tonnes)
|
778
|
|
|
628
|
|
|
1,532
|
|
|
1,382
|
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
|
Six Months
Ended
June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — co-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
696
|
|
|
$
|
579
|
|
|
$
|
711
|
|
|
$
|
685
|
|
LaRonde Zone 5
mine
|
818
|
|
|
738
|
|
|
791
|
|
|
797
|
|
Goldex mine
|
686
|
|
|
728
|
|
|
654
|
|
|
627
|
|
Meadowbank
Complex(vi)
|
1,085
|
|
|
2,262
|
|
|
1,106
|
|
|
1,803
|
|
Meliadine
mine(vii)
|
619
|
|
|
1,053
|
|
|
625
|
|
|
916
|
|
Hope Bay
mine
|
915
|
|
|
—
|
|
|
919
|
|
|
—
|
|
Canadian Malartic
mine(ii)(viii)
|
677
|
|
|
785
|
|
|
659
|
|
|
773
|
|
Kittila
mine
|
914
|
|
|
718
|
|
|
853
|
|
|
760
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,106
|
|
|
1,160
|
|
|
1,134
|
|
|
1,040
|
|
Creston Mascota
mine
|
608
|
|
|
987
|
|
|
541
|
|
|
762
|
|
La India
mine
|
1,390
|
|
|
854
|
|
|
1,060
|
|
|
819
|
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
812
|
|
|
$
|
875
|
|
|
$
|
805
|
|
|
$
|
883
|
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced — by-product
basis(v):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
437
|
|
|
$
|
457
|
|
|
$
|
463
|
|
|
$
|
563
|
|
LaRonde Zone 5
mine
|
814
|
|
|
733
|
|
|
787
|
|
|
794
|
|
Goldex mine
|
685
|
|
|
727
|
|
|
654
|
|
|
626
|
|
Meadowbank
Complex(vi)
|
1,077
|
|
|
2,260
|
|
|
1,099
|
|
|
1,798
|
|
Meliadine
mine(vii)
|
616
|
|
|
1,051
|
|
|
622
|
|
|
915
|
|
Hope Bay
mine
|
915
|
|
|
—
|
|
|
919
|
|
|
—
|
|
Canadian Malartic
mine(ii)(viii)
|
657
|
|
|
762
|
|
|
637
|
|
|
747
|
|
Kittila
mine
|
913
|
|
|
717
|
|
|
852
|
|
|
759
|
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
849
|
|
|
862
|
|
|
844
|
|
|
781
|
|
Creston Mascota
mine
|
341
|
|
|
694
|
|
|
257
|
|
|
517
|
|
La India
mine
|
1,350
|
|
|
833
|
|
|
1,026
|
|
|
802
|
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
748
|
|
|
$
|
825
|
|
|
$
|
741
|
|
|
$
|
832
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
(ii) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(iii) Payable
production (a non-GAAP non-financial performance measure) is
the quantity of mineral produced during a period contained in
products that are or will be sold by the Company, whether such
products are sold during the period or held as inventories at the
end of the period. Payable production for the three and six
months ended June 30, 2021 includes 348 ounces of gold from the
Amaruq Underground project at the Meadowbank Complex which were
produced during these periods, as commercial production at the
Amaruq Underground project has not yet been achieved. Payable
production for the three and six months ended June 30, 2021
includes 9,053 and 17,176 ounces of gold from the Tiriganiaq open
pit deposit at the Meliadine mine, respectively, which were
produced during these periods, as commercial production at the
Tiriganiaq open pit deposit has not yet been achieved. Payable
production for the three and six months ended June 30, 2020
includes 2,651 and 5,625 ounces of gold from the Canadian Malartic
mine, respectively, which were produced prior to the achievement of
commercial production at the Barnat deposit on September 30,
2020.
|
(iv) The Canadian
Malartic mine's payable metal sold excludes the 5.0% net smelter
return royalty granted to Osisko Gold Royalties Ltd.
|
(v) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's calculation and
use of total cash cost per ounce of gold produced.
|
(vi) The Meadowbank
Complex's cost calculations per ounce of gold produced for the
three and six months ended June 30, 2021 exclude 348 ounces of
payable gold production which were produced during these periods,
as commercial production at the Amaruq Underground project has not
yet been achieved.
|
(vii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
and six months ended June 30, 2021 exclude 9,053 and 17,176 ounces
of payable gold production, respectively, which were produced
during these periods, as commercial production at the Tiriganiaq
open pit deposit has not yet been achieved.
|
(viii) The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three and six months ended June 30, 2020 exclude 2,651 and
5,625 ounces of payable gold production, respectively, which were
produced prior to the achievement of commercial production at the
Barnat deposit on September 30, 2020.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
(thousands of
United States dollars, except share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
As
at
|
|
As
at
|
|
|
June 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
277,670
|
|
|
$
|
402,527
|
|
Short-term
investments
|
|
3,270
|
|
|
3,936
|
|
Trade
receivables
|
|
16,284
|
|
|
11,867
|
|
Inventories
|
|
712,143
|
|
|
630,474
|
|
Income taxes
recoverable
|
|
7,366
|
|
|
3,656
|
|
Fair value of
derivative financial instruments
|
|
32,857
|
|
|
35,516
|
|
Other current
assets
|
|
221,240
|
|
|
159,212
|
|
Total current
assets
|
|
1,270,830
|
|
|
1,247,188
|
|
Non-current
assets:
|
|
|
|
|
Goodwill
|
|
407,792
|
|
|
407,792
|
|
Property, plant and
mine development
|
|
7,566,608
|
|
|
7,325,418
|
|
Investments
|
|
333,370
|
|
|
375,103
|
|
Other
assets
|
|
340,390
|
|
|
259,254
|
|
Total
assets
|
|
$
|
9,918,990
|
|
|
$
|
9,614,755
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
475,344
|
|
|
$
|
363,801
|
|
Reclamation
provision
|
|
17,822
|
|
|
15,270
|
|
Interest
payable
|
|
12,297
|
|
|
12,184
|
|
Income taxes
payable
|
|
30,699
|
|
|
102,687
|
|
Lease
obligations
|
|
25,476
|
|
|
20,852
|
|
Current portion of
long-term debt
|
|
125,000
|
|
|
—
|
|
Fair value of
derivative financial instruments
|
|
14,635
|
|
|
904
|
|
Total current
liabilities
|
|
701,273
|
|
|
515,698
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
|
1,441,476
|
|
|
1,565,241
|
|
Lease
obligations
|
|
95,547
|
|
|
99,423
|
|
Reclamation
provision
|
|
719,689
|
|
|
651,783
|
|
Deferred income and
mining tax liabilities
|
|
1,023,194
|
|
|
1,036,061
|
|
Other
liabilities
|
|
73,339
|
|
|
63,336
|
|
Total
liabilities
|
|
4,054,518
|
|
|
3,931,542
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Common
shares:
|
|
|
|
|
Outstanding — 244,360,793 common shares issued, less 657,547
shares held in trust
|
|
5,794,462
|
|
|
5,751,479
|
|
Stock
options
|
|
184,876
|
|
|
175,640
|
|
Contributed
surplus
|
|
37,254
|
|
|
37,254
|
|
Deficit
|
|
(209,245)
|
|
|
(366,412)
|
|
Other
reserves
|
|
57,125
|
|
|
85,252
|
|
Total
equity
|
|
5,864,472
|
|
|
5,683,213
|
|
Total liabilities and
equity
|
|
$
|
9,918,990
|
|
|
$
|
9,614,755
|
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
|
966,320
|
|
|
$
|
557,175
|
|
|
$
|
1,900,712
|
|
|
$
|
1,229,053
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES
|
|
|
|
|
|
|
|
Production(i)
|
427,172
|
|
|
280,394
|
|
|
839,572
|
|
|
636,496
|
|
Exploration and
corporate development
|
39,942
|
|
|
14,337
|
|
|
68,651
|
|
|
43,980
|
|
Amortization of
property, plant and mine development
|
175,309
|
|
|
129,465
|
|
|
356,424
|
|
|
282,974
|
|
General and
administrative
|
31,325
|
|
|
25,546
|
|
|
76,258
|
|
|
56,089
|
|
Finance
costs
|
23,261
|
|
|
25,000
|
|
|
45,429
|
|
|
52,762
|
|
Gain on derivative
financial instruments
|
(21,120)
|
|
|
(62,175)
|
|
|
(54)
|
|
|
(19,573)
|
|
Foreign currency
translation loss (gain)
|
2,440
|
|
|
3,322
|
|
|
(638)
|
|
|
7,168
|
|
Other
expenses
|
5,744
|
|
|
23,735
|
|
|
3,235
|
|
|
28,275
|
|
Income before income
and mining taxes
|
282,247
|
|
|
117,551
|
|
|
511,835
|
|
|
140,882
|
|
Income and mining
taxes expense
|
92,686
|
|
|
12,250
|
|
|
186,126
|
|
|
57,146
|
|
Net income for the
period
|
$
|
189,561
|
|
|
$
|
105,301
|
|
|
$
|
325,709
|
|
|
$
|
83,736
|
|
|
|
|
|
|
|
|
|
Net income per share
- basic
|
$
|
0.78
|
|
|
$
|
0.44
|
|
|
$
|
1.34
|
|
|
$
|
0.35
|
|
Net income per share
- diluted
|
$
|
0.77
|
|
|
$
|
0.43
|
|
|
$
|
1.33
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
243,337
|
|
|
241,170
|
|
|
243,165
|
|
|
240,697
|
|
Diluted
|
244,761
|
|
|
242,757
|
|
|
244,373
|
|
|
242,137
|
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i)
Exclusive of amortization, which is shown separately.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
|
189,561
|
|
|
$
|
105,301
|
|
|
$
|
325,709
|
|
|
$
|
83,736
|
|
Add (deduct)
adjusting items:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
175,309
|
|
|
129,465
|
|
|
356,424
|
|
|
282,974
|
|
Deferred income and
mining taxes
|
49,753
|
|
|
3,691
|
|
|
101,189
|
|
|
28,423
|
|
Unrealized loss (gain)
on currency and commodity derivatives
|
17,131
|
|
|
(38,427)
|
|
|
16,390
|
|
|
5
|
|
Unrealized (gain) loss
on warrants
|
(18,221)
|
|
|
(33,691)
|
|
|
13,589
|
|
|
(31,828)
|
|
Stock-based
compensation
|
13,543
|
|
|
11,512
|
|
|
31,579
|
|
|
26,530
|
|
Foreign currency
translation loss (gain)
|
2,440
|
|
|
3,322
|
|
|
(638)
|
|
|
7,168
|
|
Other
|
2,635
|
|
|
3,978
|
|
|
3,138
|
|
|
(7,070)
|
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
87
|
|
|
328
|
|
|
(4,417)
|
|
|
1,610
|
|
Income
taxes
|
396
|
|
|
1,977
|
|
|
(68,087)
|
|
|
(20,153)
|
|
Inventories
|
(46,515)
|
|
|
(50,279)
|
|
|
(20,673)
|
|
|
(42,602)
|
|
Other current
assets
|
(53,536)
|
|
|
(14,053)
|
|
|
(55,806)
|
|
|
(2,130)
|
|
Accounts payable and
accrued liabilities
|
86,996
|
|
|
62,804
|
|
|
65,311
|
|
|
4,114
|
|
Interest
payable
|
(12,658)
|
|
|
(23,280)
|
|
|
(400)
|
|
|
(4,771)
|
|
Cash provided by
operating activities
|
406,921
|
|
|
162,648
|
|
|
763,308
|
|
|
326,006
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(204,306)
|
|
|
(170,459)
|
|
|
(386,192)
|
|
|
(339,270)
|
|
Acquisition of TMAC,
net of cash and cash equivalents
|
—
|
|
|
—
|
|
|
(185,898)
|
|
|
—
|
|
Advance to TMAC to
fund repayment of debt
|
—
|
|
|
—
|
|
|
(105,000)
|
|
|
—
|
|
Payment to repurchase
the Hope Bay royalty
|
—
|
|
|
—
|
|
|
(50,000)
|
|
|
—
|
|
Proceeds from sale of
property, plant and mine development
|
80
|
|
|
272
|
|
|
542
|
|
|
373
|
|
Net sales (purchases)
of short-term investments
|
2,216
|
|
|
1,259
|
|
|
666
|
|
|
(885)
|
|
Net proceeds from
sale of equity securities and other investments
|
2,700
|
|
|
—
|
|
|
4,173
|
|
|
8,759
|
|
Purchases of equity
securities and other investments
|
(5,380)
|
|
|
(8,810)
|
|
|
(10,849)
|
|
|
(24,881)
|
|
Payments for
financial assets at amortized cost
|
(16,000)
|
|
|
—
|
|
|
(16,000)
|
|
|
—
|
|
Decrease in
restricted cash
|
23,077
|
|
|
—
|
|
|
23,077
|
|
|
—
|
|
Cash used in
investing activities
|
(197,613)
|
|
|
(177,738)
|
|
|
(725,481)
|
|
|
(355,904)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from Credit
Facility
|
100,000
|
|
|
—
|
|
|
340,000
|
|
|
1,000,000
|
|
Repayment of Credit
Facility
|
(100,000)
|
|
|
(750,000)
|
|
|
(340,000)
|
|
|
(750,000)
|
|
Proceeds from Senior
Notes issuance
|
—
|
|
|
200,000
|
|
|
—
|
|
|
200,000
|
|
Repayment of Senior
Notes
|
—
|
|
|
(360,000)
|
|
|
—
|
|
|
(360,000)
|
|
Long-term debt
financing costs
|
—
|
|
|
(1,597)
|
|
|
—
|
|
|
(1,597)
|
|
Repayment of lease
obligations
|
(10,047)
|
|
|
(3,750)
|
|
|
(15,471)
|
|
|
(7,479)
|
|
Dividends
paid
|
(67,038)
|
|
|
(41,069)
|
|
|
(140,008)
|
|
|
(78,563)
|
|
Repurchase of common
shares for stock-based compensation plans
|
—
|
|
|
—
|
|
|
(34,606)
|
|
|
(35,930)
|
|
Proceeds on exercise
of stock options
|
8,244
|
|
|
39,979
|
|
|
16,645
|
|
|
68,053
|
|
Common shares
issued
|
4,680
|
|
|
2,019
|
|
|
9,145
|
|
|
5,928
|
|
Cash (used in)
provided by financing activities
|
(64,161)
|
|
|
(914,418)
|
|
|
(164,295)
|
|
|
40,412
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
6,057
|
|
|
3,792
|
|
|
1,611
|
|
|
(2,854)
|
|
Net increase
(decrease) in cash and cash equivalents during the
period
|
151,204
|
|
|
(925,716)
|
|
|
(124,857)
|
|
|
7,660
|
|
Cash and cash
equivalents, beginning of period
|
126,466
|
|
|
1,255,273
|
|
|
402,527
|
|
|
321,897
|
|
Cash and cash
equivalents, end of period
|
$
|
277,670
|
|
|
$
|
329,557
|
|
|
$
|
277,670
|
|
|
$
|
329,557
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
|
34,327
|
|
|
$
|
47,215
|
|
|
$
|
42,053
|
|
|
$
|
54,447
|
|
Income and mining
taxes paid
|
$
|
44,518
|
|
|
$
|
6,926
|
|
|
$
|
153,171
|
|
|
$
|
53,053
|
|
AGNICO EAGLE MINES
LIMITED
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
(thousands of
United States dollars, except where noted)
|
|
Total Production
Costs by Mine
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
(thousands of
United States dollars)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
LaRonde
mine
|
|
$
|
59,806
|
|
$
|
41,351
|
|
$
|
111,148
|
|
$
|
61,987
|
LaRonde Zone 5
mine
|
|
14,253
|
|
9,346
|
|
26,938
|
|
21,138
|
LaRonde
Complex
|
|
74,059
|
|
50,697
|
|
138,086
|
|
83,125
|
Goldex
mine
|
|
25,261
|
|
16,262
|
|
47,774
|
|
36,220
|
Meadowbank
Complex
|
|
96,022
|
|
28,483
|
|
183,361
|
|
117,849
|
Meliadine
mine
|
|
54,995
|
|
61,331
|
|
114,759
|
|
115,586
|
Hope Bay
mine
|
|
17,594
|
|
—
|
|
41,669
|
|
—
|
Canadian Malartic
mine(i)
|
|
63,458
|
|
37,333
|
|
118,926
|
|
85,989
|
Kittila
mine
|
|
47,944
|
|
43,053
|
|
96,604
|
|
86,724
|
Pinos Altos
mine
|
|
39,345
|
|
18,221
|
|
71,343
|
|
54,102
|
Creston Mascota
mine
|
|
2,009
|
|
9,595
|
|
4,426
|
|
21,432
|
La India
mine
|
|
6,485
|
|
15,419
|
|
22,624
|
|
35,469
|
Production costs per
the condensed
interim consolidated statements of income
|
|
$
|
427,172
|
|
$
|
280,394
|
|
$
|
839,572
|
|
$
|
636,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold
Produced(ii) by Mine and Reconciliation of Production
Costs to Minesite Costs per Tonne(iii) by
Mine
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
80,681
|
|
|
|
|
62,266
|
|
|
|
|
156,070
|
|
|
|
|
117,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
59,806
|
|
|
$
|
741
|
|
|
$
|
41,351
|
|
|
$
|
664
|
|
|
$
|
111,148
|
|
|
$
|
712
|
|
|
$
|
61,987
|
|
|
$
|
528
|
|
Inventory and other
adjustments(iv)
|
(3,634)
|
|
|
(45)
|
|
|
(5,311)
|
|
|
(85)
|
|
|
(143)
|
|
|
(1)
|
|
|
18,545
|
|
|
157
|
|
Cash operating costs
(co-product basis)
|
$
|
56,172
|
|
|
$
|
696
|
|
|
$
|
36,040
|
|
|
$
|
579
|
|
|
$
|
111,005
|
|
|
$
|
711
|
|
|
$
|
80,532
|
|
|
$
|
685
|
|
By-product metal
revenues
|
(20,878)
|
|
|
(259)
|
|
|
(7,562)
|
|
|
(122)
|
|
|
(38,777)
|
|
|
(248)
|
|
|
(14,390)
|
|
|
(122)
|
|
Cash operating costs
(by-product basis)
|
$
|
35,294
|
|
|
$
|
437
|
|
|
$
|
28,478
|
|
|
$
|
457
|
|
|
$
|
72,228
|
|
|
$
|
463
|
|
|
$
|
66,142
|
|
|
$
|
563
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
443
|
|
|
|
|
324
|
|
|
|
|
930
|
|
|
|
|
736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
59,806
|
|
|
$
|
135
|
|
|
$
|
41,351
|
|
|
$
|
128
|
|
|
$
|
111,148
|
|
|
$
|
120
|
|
|
$
|
61,987
|
|
|
$
|
84
|
|
Production costs
(C$)
|
C$
|
72,508
|
|
|
C$
|
164
|
|
|
C$
|
55,219
|
|
|
C$
|
170
|
|
|
C$
|
138,911
|
|
|
C$
|
149
|
|
|
C$
|
81,050
|
|
|
C$
|
110
|
|
Inventory and other
adjustments (C$)(v)
|
(7,465)
|
|
|
(17)
|
|
|
(12,584)
|
|
|
(38)
|
|
|
(9,454)
|
|
|
(10)
|
|
|
16,007
|
|
|
22
|
|
Minesite operating
costs (C$)
|
C$
|
65,043
|
|
|
C$
|
147
|
|
|
C$
|
42,635
|
|
|
C$
|
132
|
|
|
C$
|
129,457
|
|
|
C$
|
139
|
|
|
C$
|
97,057
|
|
|
C$
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
16,842
|
|
|
|
|
12,051
|
|
|
|
|
34,531
|
|
|
|
|
26,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
14,253
|
|
|
$
|
846
|
|
|
$
|
9,346
|
|
|
$
|
776
|
|
|
$
|
26,938
|
|
|
$
|
780
|
|
|
$
|
21,138
|
|
|
$
|
797
|
|
Inventory and other
adjustments(iv)
|
(484)
|
|
|
(28)
|
|
|
(458)
|
|
|
(38)
|
|
|
380
|
|
|
11
|
|
|
4
|
|
|
—
|
|
Cash operating costs
(co-product basis)
|
$
|
13,769
|
|
|
$
|
818
|
|
|
$
|
8,888
|
|
|
$
|
738
|
|
|
$
|
27,318
|
|
|
$
|
791
|
|
|
$
|
21,142
|
|
|
$
|
797
|
|
By-product metal
revenues
|
(63)
|
|
|
(4)
|
|
|
(53)
|
|
|
(5)
|
|
|
(152)
|
|
|
(4)
|
|
|
(86)
|
|
|
(3)
|
|
Cash operating costs
(by-product basis)
|
$
|
13,706
|
|
|
$
|
814
|
|
|
$
|
8,835
|
|
|
$
|
733
|
|
|
$
|
27,166
|
|
|
$
|
787
|
|
|
$
|
21,056
|
|
|
$
|
794
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
278
|
|
|
|
|
185
|
|
|
|
|
555
|
|
|
|
|
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
14,253
|
|
|
$
|
51
|
|
|
$
|
9,346
|
|
|
$
|
51
|
|
|
$
|
26,938
|
|
|
$
|
49
|
|
|
$
|
21,138
|
|
|
$
|
49
|
|
Production costs
(C$)
|
C$
|
17,645
|
|
|
C$
|
63
|
|
|
C$
|
12,762
|
|
|
C$
|
69
|
|
|
C$
|
33,799
|
|
|
C$
|
61
|
|
|
C$
|
28,565
|
|
|
C$
|
66
|
|
Inventory and other
adjustments (C$)(v)
|
259
|
|
|
1
|
|
|
(712)
|
|
|
(4)
|
|
|
1,902
|
|
|
3
|
|
|
(52)
|
|
|
—
|
|
Minesite operating
costs (C$)
|
C$
|
17,904
|
|
|
C$
|
64
|
|
|
C$
|
12,050
|
|
|
C$
|
65
|
|
|
C$
|
35,701
|
|
|
C$
|
64
|
|
|
C$
|
28,513
|
|
|
C$
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
97,523
|
|
|
|
|
74,317
|
|
|
|
|
190,601
|
|
|
|
|
144,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
74,059
|
|
|
$
|
759
|
|
|
$
|
50,697
|
|
|
$
|
682
|
|
|
$
|
138,086
|
|
|
$
|
724
|
|
|
$
|
83,125
|
|
|
$
|
577
|
|
Inventory and other
adjustments(iv)
|
(4,118)
|
|
|
(42)
|
|
|
(5,769)
|
|
|
(77)
|
|
|
237
|
|
|
2
|
|
|
18,549
|
|
|
129
|
|
Cash operating costs
(co-product basis)
|
$
|
69,941
|
|
|
$
|
717
|
|
|
$
|
44,928
|
|
|
$
|
605
|
|
|
$
|
138,323
|
|
|
$
|
726
|
|
|
$
|
101,674
|
|
|
$
|
706
|
|
By-product metal
revenues
|
(20,941)
|
|
|
(215)
|
|
|
(7,615)
|
|
|
(103)
|
|
|
(38,929)
|
|
|
(205)
|
|
|
(14,476)
|
|
|
(100)
|
|
Cash operating costs
(by-product basis)
|
$
|
49,000
|
|
|
$
|
502
|
|
|
$
|
37,313
|
|
|
$
|
502
|
|
|
$
|
99,394
|
|
|
$
|
521
|
|
|
$
|
87,198
|
|
|
$
|
606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Complex
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
721
|
|
|
|
|
509
|
|
|
|
|
1,485
|
|
|
|
|
1,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
74,059
|
|
|
$
|
103
|
|
|
$
|
50,697
|
|
|
$
|
100
|
|
|
$
|
138,086
|
|
|
$
|
93
|
|
|
$
|
83,125
|
|
|
$
|
71
|
|
Production costs
(C$)
|
C$
|
90,153
|
|
|
C$
|
125
|
|
|
C$
|
67,981
|
|
|
C$
|
134
|
|
|
C$
|
172,710
|
|
|
C$
|
116
|
|
|
C$
|
109,615
|
|
|
C$
|
94
|
|
Inventory and other
adjustments (C$)(v)
|
(7,206)
|
|
|
(10)
|
|
|
(13,296)
|
|
|
(27)
|
|
|
(7,552)
|
|
|
(5)
|
|
|
15,955
|
|
|
14
|
|
Minesite operating
costs (C$)
|
C$
|
82,947
|
|
|
C$
|
115
|
|
|
C$
|
54,685
|
|
|
C$
|
107
|
|
|
C$
|
165,158
|
|
|
C$
|
111
|
|
|
C$
|
125,570
|
|
|
C$
|
108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
34,659
|
|
|
|
|
23,142
|
|
|
|
|
69,309
|
|
|
|
|
57,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
25,261
|
|
|
$
|
729
|
|
|
$
|
16,262
|
|
|
$
|
703
|
|
|
$
|
47,774
|
|
|
$
|
689
|
|
|
$
|
36,220
|
|
|
$
|
635
|
|
Inventory and other
adjustments(iv)
|
(1,489)
|
|
|
(43)
|
|
|
577
|
|
|
25
|
|
|
(2,426)
|
|
|
(35)
|
|
|
(486)
|
|
|
(8)
|
|
Cash operating costs
(co-product basis)
|
$
|
23,772
|
|
|
$
|
686
|
|
|
$
|
16,839
|
|
|
$
|
728
|
|
|
$
|
45,348
|
|
|
$
|
654
|
|
|
$
|
35,734
|
|
|
$
|
627
|
|
By-product metal
revenues
|
(17)
|
|
|
(1)
|
|
|
(13)
|
|
|
(1)
|
|
|
(23)
|
|
|
—
|
|
|
(13)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
$
|
23,755
|
|
|
$
|
685
|
|
|
$
|
16,826
|
|
|
$
|
727
|
|
|
$
|
45,325
|
|
|
$
|
654
|
|
|
$
|
35,721
|
|
|
$
|
626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
723
|
|
|
|
|
533
|
|
|
|
|
1,450
|
|
|
|
|
1,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
25,261
|
|
|
$
|
35
|
|
|
$
|
16,262
|
|
|
$
|
31
|
|
|
$
|
47,774
|
|
|
$
|
33
|
|
|
$
|
36,220
|
|
|
$
|
30
|
|
Production costs
(C$)
|
C$
|
31,146
|
|
|
C$
|
43
|
|
|
C$
|
22,367
|
|
|
C$
|
42
|
|
|
C$
|
59,704
|
|
|
C$
|
41
|
|
|
C$
|
48,606
|
|
|
C$
|
41
|
|
Inventory and other
adjustments (C$)(v)
|
(39)
|
|
|
—
|
|
|
603
|
|
|
1
|
|
|
(66)
|
|
|
—
|
|
|
(329)
|
|
|
—
|
|
Minesite operating
costs (C$)
|
C$
|
31,107
|
|
|
C$
|
43
|
|
|
C$
|
22,970
|
|
|
C$
|
43
|
|
|
C$
|
59,638
|
|
|
C$
|
41
|
|
|
C$
|
48,277
|
|
|
C$
|
41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)(vi)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
85,551
|
|
|
|
|
16,417
|
|
|
|
|
165,516
|
|
|
|
|
65,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
96,022
|
|
|
$
|
1,122
|
|
|
$
|
28,483
|
|
|
$
|
1,735
|
|
|
$
|
183,361
|
|
|
$
|
1,108
|
|
|
$
|
117,849
|
|
|
$
|
1,792
|
|
Inventory and other
adjustments(iv)
|
(3,184)
|
|
|
(37)
|
|
|
8,645
|
|
|
527
|
|
|
(246)
|
|
|
(2)
|
|
|
701
|
|
|
11
|
|
Cash operating costs
(co-product basis)
|
$
|
92,838
|
|
|
$
|
1,085
|
|
|
$
|
37,128
|
|
|
$
|
2,262
|
|
|
$
|
183,115
|
|
|
$
|
1,106
|
|
|
$
|
118,550
|
|
|
$
|
1,803
|
|
By-product metal
revenues
|
(701)
|
|
|
(8)
|
|
|
(29)
|
|
|
(2)
|
|
|
(1,193)
|
|
|
(7)
|
|
|
(330)
|
|
|
(5)
|
|
Cash operating costs
(by-product basis)
|
$
|
92,137
|
|
|
$
|
1,077
|
|
|
$
|
37,099
|
|
|
$
|
2,260
|
|
|
$
|
181,922
|
|
|
$
|
1,099
|
|
|
$
|
118,220
|
|
|
$
|
1,798
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Complex
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)(vii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
879
|
|
|
|
|
312
|
|
|
|
|
1,803
|
|
|
|
|
891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
96,022
|
|
|
$
|
109
|
|
|
$
|
28,483
|
|
|
$
|
91
|
|
|
$
|
183,361
|
|
|
$
|
102
|
|
|
$
|
117,849
|
|
|
$
|
132
|
|
Production costs
(C$)
|
C$
|
120,248
|
|
|
C$
|
137
|
|
|
C$
|
38,809
|
|
|
C$
|
124
|
|
|
C$
|
233,014
|
|
|
C$
|
129
|
|
|
C$
|
158,314
|
|
|
C$
|
178
|
|
Inventory and other
adjustments (C$)(v)
|
880
|
|
|
1
|
|
|
5,843
|
|
|
19
|
|
|
7,982
|
|
|
5
|
|
|
(6,082)
|
|
|
(7)
|
|
Minesite operating
costs (C$)
|
C$
|
121,128
|
|
|
C$
|
138
|
|
|
C$
|
44,652
|
|
|
C$
|
143
|
|
|
C$
|
240,996
|
|
|
C$
|
134
|
|
|
C$
|
152,232
|
|
|
C$
|
171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)(viii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
87,641
|
|
|
|
|
59,375
|
|
|
|
|
175,644
|
|
|
|
|
129,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
54,995
|
|
|
$
|
628
|
|
|
$
|
61,331
|
|
|
$
|
1,033
|
|
|
$
|
114,759
|
|
|
$
|
653
|
|
|
$
|
115,586
|
|
|
$
|
894
|
|
Inventory and other
adjustments(iv)
|
(772)
|
|
|
(9)
|
|
|
1,176
|
|
|
20
|
|
|
(5,063)
|
|
|
(28)
|
|
|
2,963
|
|
|
22
|
|
Cash operating costs
(co-product basis)
|
$
|
54,223
|
|
|
$
|
619
|
|
|
$
|
62,507
|
|
|
$
|
1,053
|
|
|
$
|
109,696
|
|
|
$
|
625
|
|
|
$
|
118,549
|
|
|
$
|
916
|
|
By-product metal
revenues
|
(225)
|
|
|
(3)
|
|
|
(90)
|
|
|
(2)
|
|
|
(445)
|
|
|
(3)
|
|
|
(202)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
$
|
53,998
|
|
|
$
|
616
|
|
|
$
|
62,417
|
|
|
$
|
1,051
|
|
|
$
|
109,251
|
|
|
$
|
622
|
|
|
$
|
118,347
|
|
|
$
|
915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)(ix)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
324
|
|
|
|
|
337
|
|
|
|
|
662
|
|
|
|
|
644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
54,995
|
|
|
$
|
170
|
|
|
$
|
61,331
|
|
|
$
|
182
|
|
|
$
|
114,759
|
|
|
$
|
173
|
|
|
115,586
|
|
|
$
|
179
|
|
Production costs
(C$)
|
C$
|
68,378
|
|
|
C$
|
211
|
|
|
C$
|
84,443
|
|
|
C$
|
251
|
|
|
C$
|
144,787
|
|
|
C$
|
219
|
|
|
C$
|
156,370
|
|
|
C$
|
243
|
|
Inventory and other
adjustments (C$)(v)
|
3,482
|
|
|
11
|
|
|
(1,535)
|
|
|
(5)
|
|
|
974
|
|
|
1
|
|
|
583
|
|
|
1
|
|
Minesite operating
costs (C$)
|
C$
|
71,860
|
|
|
C$
|
222
|
|
|
C$
|
82,908
|
|
|
C$
|
246
|
|
|
C$
|
145,761
|
|
|
C$
|
220
|
|
|
C$
|
156,953
|
|
|
C$
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
25,308
|
|
|
|
|
—
|
|
|
|
|
37,567
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
17,594
|
|
|
$
|
695
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41,669
|
|
|
$
|
1,109
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Inventory and other
adjustments(iv)
|
5,555
|
|
|
219
|
|
|
—
|
|
|
—
|
|
|
(7,136)
|
|
|
(190)
|
|
|
—
|
|
|
—
|
|
Cash operating costs
(co-product basis)
|
$
|
23,149
|
|
|
$
|
915
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,533
|
|
|
$
|
919
|
|
|
$
|
—
|
|
|
$
|
—
|
|
By-product metal
revenues
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Cash operating costs
(by-product basis)
|
$
|
23,149
|
|
|
$
|
915
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,533
|
|
|
$
|
919
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hope Bay
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
95
|
|
|
|
|
—
|
|
|
|
|
134
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
17,594
|
|
|
$
|
185
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
41,669
|
|
|
$
|
311
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Production costs
(C$)
|
C$
|
21,468
|
|
|
C$
|
225
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
51,945
|
|
|
C$
|
387
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
Inventory and other
adjustments (C$)(v)
|
6,979
|
|
|
74
|
|
|
—
|
|
|
—
|
|
|
(9,327)
|
|
|
(70)
|
|
|
—
|
|
|
—
|
|
Minesite operating
costs (C$)
|
C$
|
28,447
|
|
|
C$
|
299
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
C$
|
42,618
|
|
|
C$
|
317
|
|
|
C$
|
—
|
|
|
C$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(i)(ii)*
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
92,106
|
|
|
|
|
54,134
|
|
|
|
|
181,656
|
|
|
|
|
115,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
63,458
|
|
|
$
|
689
|
|
|
$
|
37,333
|
|
|
$
|
690
|
|
|
$
|
118,926
|
|
|
$
|
655
|
|
|
$
|
85,989
|
|
|
$
|
742
|
|
Inventory and other
adjustments(iv)
|
(1,071)
|
|
|
(12)
|
|
|
5,146
|
|
|
95
|
|
|
745
|
|
|
4
|
|
|
3,639
|
|
|
31
|
|
Cash operating costs
(co-product basis)
|
$
|
62,387
|
|
|
$
|
677
|
|
|
$
|
42,479
|
|
|
$
|
785
|
|
|
$
|
119,671
|
|
|
$
|
659
|
|
|
$
|
89,628
|
|
|
$
|
773
|
|
By-product metal
revenues
|
(1,846)
|
|
|
(20)
|
|
|
(1,247)
|
|
|
(23)
|
|
|
(3,876)
|
|
|
(22)
|
|
|
(3,020)
|
|
|
(26)
|
|
Cash operating costs
(by-product basis)
|
$
|
60,541
|
|
|
$
|
657
|
|
|
$
|
41,232
|
|
|
$
|
762
|
|
|
$
|
115,795
|
|
|
$
|
637
|
|
|
$
|
86,608
|
|
|
$
|
747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(i)(iii)(xi)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
2,820
|
|
|
|
|
2,228
|
|
|
|
|
5,451
|
|
|
|
|
4,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
63,458
|
|
|
$
|
23
|
|
|
$
|
37,333
|
|
|
$
|
17
|
|
|
$
|
118,926
|
|
|
$
|
22
|
|
|
$
|
85,989
|
|
|
$
|
19
|
|
Production costs
(C$)
|
C$
|
79,257
|
|
|
C$
|
28
|
|
|
C$
|
50,379
|
|
|
C$
|
23
|
|
|
C$
|
150,467
|
|
|
C$
|
28
|
|
|
C$
|
115,851
|
|
|
C$
|
25
|
|
Inventory and other
adjustments (C$)(v)
|
(1,408)
|
|
|
—
|
|
|
4,440
|
|
|
2
|
|
|
803
|
|
|
—
|
|
|
1,914
|
|
|
1
|
|
Minesite operating
costs (C$)
|
C$
|
77,849
|
|
|
C$
|
28
|
|
|
C$
|
54,819
|
|
|
C$
|
25
|
|
|
C$
|
151,270
|
|
|
C$
|
28
|
|
|
C$
|
117,765
|
|
|
C$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
53,263
|
|
|
|
|
60,623
|
|
|
|
|
113,979
|
|
|
|
|
109,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
47,944
|
|
|
$
|
900
|
|
|
$
|
43,053
|
|
|
$
|
710
|
|
|
$
|
96,604
|
|
|
$
|
848
|
|
|
$
|
86,724
|
|
|
$
|
789
|
|
Inventory and other
adjustments(iv)
|
761
|
|
|
14
|
|
|
455
|
|
|
8
|
|
|
632
|
|
|
5
|
|
|
(3,221)
|
|
|
(29)
|
|
Cash operating costs
(co-product basis)
|
$
|
48,705
|
|
|
$
|
914
|
|
|
$
|
43,508
|
|
|
$
|
718
|
|
|
$
|
97,236
|
|
|
$
|
853
|
|
|
$
|
83,503
|
|
|
$
|
760
|
|
By-product metal
revenues
|
(79)
|
|
|
(1)
|
|
|
(39)
|
|
|
(1)
|
|
|
(133)
|
|
|
(1)
|
|
|
(93)
|
|
|
(1)
|
|
Cash operating costs
(by-product basis)
|
$
|
48,626
|
|
|
$
|
913
|
|
|
$
|
43,469
|
|
|
$
|
717
|
|
|
$
|
97,103
|
|
|
$
|
852
|
|
|
$
|
83,410
|
|
|
$
|
759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
483
|
|
|
|
|
500
|
|
|
|
|
977
|
|
|
|
|
920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
47,944
|
|
|
$
|
99
|
|
|
$
|
43,053
|
|
|
$
|
86
|
|
|
$
|
96,604
|
|
|
$
|
99
|
|
|
$
|
86,724
|
|
|
$
|
94
|
|
Production costs
(€)
|
€
|
39,861
|
|
|
€
|
83
|
|
|
€
|
38,993
|
|
|
€
|
78
|
|
|
€
|
80,929
|
|
|
€
|
83
|
|
|
€
|
78,658
|
|
|
€
|
85
|
|
Inventory and other
adjustments (€)(v)
|
435
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
(3,194)
|
|
|
(3)
|
|
Minesite operating
costs (€)
|
€
|
40,296
|
|
|
€
|
83
|
|
|
€
|
39,157
|
|
|
€
|
78
|
|
|
€
|
81,027
|
|
|
€
|
83
|
|
|
€
|
75,464
|
|
|
€
|
82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
32,614
|
|
|
|
|
13,880
|
|
|
|
|
61,789
|
|
|
|
|
47,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
39,345
|
|
|
$
|
1,206
|
|
|
$
|
18,221
|
|
|
$
|
1,313
|
|
|
$
|
71,343
|
|
|
$
|
1,155
|
|
|
$
|
54,102
|
|
|
$
|
1,146
|
|
Inventory and other
adjustments(iv)
|
(3,267)
|
|
|
(100)
|
|
|
(2,116)
|
|
|
(153)
|
|
|
(1,280)
|
|
|
(21)
|
|
|
(5,022)
|
|
|
(106)
|
|
Cash operating costs
(co-product basis)
|
$
|
36,078
|
|
|
$
|
1,106
|
|
|
$
|
16,105
|
|
|
$
|
1,160
|
|
|
$
|
70,063
|
|
|
$
|
1,134
|
|
|
$
|
49,080
|
|
|
$
|
1,040
|
|
By-product metal
revenues
|
(8,403)
|
|
|
(257)
|
|
|
(4,137)
|
|
|
(298)
|
|
|
(17,941)
|
|
|
(290)
|
|
|
(12,216)
|
|
|
(259)
|
|
Cash operating costs
(by-product basis)
|
$
|
27,675
|
|
|
$
|
849
|
|
|
$
|
11,968
|
|
|
$
|
862
|
|
|
$
|
52,122
|
|
|
$
|
844
|
|
|
$
|
36,864
|
|
|
$
|
781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
521
|
|
|
|
|
214
|
|
|
|
|
1,014
|
|
|
|
|
694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
39,345
|
|
|
$
|
76
|
|
|
$
|
18,221
|
|
|
$
|
85
|
|
|
$
|
71,343
|
|
|
$
|
70
|
|
|
$
|
54,102
|
|
|
$
|
78
|
|
Inventory and other
adjustments(v)
|
(2,850)
|
|
|
(6)
|
|
|
(3,627)
|
|
|
(17)
|
|
|
(690)
|
|
|
—
|
|
|
(7,118)
|
|
|
(10)
|
|
Minesite operating
costs
|
$
|
36,495
|
|
|
$
|
70
|
|
|
$
|
14,594
|
|
|
$
|
68
|
|
|
$
|
70,653
|
|
|
$
|
70
|
|
|
$
|
46,984
|
|
|
$
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
3,228
|
|
|
|
|
9,646
|
|
|
|
|
7,480
|
|
|
|
|
27,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
2,009
|
|
|
$
|
622
|
|
|
$
|
9,595
|
|
|
$
|
995
|
|
|
$
|
4,426
|
|
|
$
|
592
|
|
|
$
|
21,432
|
|
|
$
|
770
|
|
Inventory and other
adjustments(iv)
|
(45)
|
|
|
(14)
|
|
|
(74)
|
|
|
(8)
|
|
|
(381)
|
|
|
(51)
|
|
|
(217)
|
|
|
(8)
|
|
Cash operating costs
(co-product basis)
|
$
|
1,964
|
|
|
$
|
608
|
|
|
$
|
9,521
|
|
|
$
|
987
|
|
|
$
|
4,045
|
|
|
$
|
541
|
|
|
$
|
21,215
|
|
|
$
|
762
|
|
By-product metal
revenues
|
(863)
|
|
|
(267)
|
|
|
(2,830)
|
|
|
(293)
|
|
|
(2,126)
|
|
|
(284)
|
|
|
(6,830)
|
|
|
(245)
|
|
Cash operating costs
(by-product basis)
|
$
|
1,101
|
|
|
$
|
341
|
|
|
$
|
6,691
|
|
|
$
|
694
|
|
|
$
|
1,919
|
|
|
$
|
257
|
|
|
$
|
14,385
|
|
|
$
|
517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)(xii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
—
|
|
|
|
|
126
|
|
|
|
|
—
|
|
|
|
|
338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
2,009
|
|
|
$
|
—
|
|
|
$
|
9,595
|
|
|
$
|
76
|
|
|
$
|
4,426
|
|
|
$
|
—
|
|
|
$
|
21,432
|
|
|
$
|
63
|
|
Inventory and other
adjustments(v)
|
(2,009)
|
|
|
—
|
|
|
(277)
|
|
|
(2)
|
|
|
(4,426)
|
|
|
—
|
|
|
(638)
|
|
|
(1)
|
|
Minesite operating
costs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,318
|
|
|
$
|
74
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
20,794
|
|
|
$
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per Ounce of Gold
Produced(ii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
|
(thousands)
|
|
($ per
ounce)
|
Gold production
(ounces)
|
|
|
4,712
|
|
|
|
|
16,879
|
|
|
|
|
21,745
|
|
|
|
|
39,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
6,485
|
|
|
$
|
1,376
|
|
|
$
|
15,419
|
|
|
$
|
914
|
|
|
$
|
22,624
|
|
|
$
|
1,040
|
|
|
$
|
35,469
|
|
|
$
|
891
|
|
Inventory and other
adjustments(iv)
|
67
|
|
|
14
|
|
|
(1,006)
|
|
|
(60)
|
|
|
429
|
|
|
20
|
|
|
(2,879)
|
|
|
(72)
|
|
Cash operating costs
(co-product basis)
|
$
|
6,552
|
|
|
$
|
1,390
|
|
|
$
|
14,413
|
|
|
$
|
854
|
|
|
$
|
23,053
|
|
|
$
|
1,060
|
|
|
$
|
32,590
|
|
|
$
|
819
|
|
By-product metal
revenues
|
(190)
|
|
|
(40)
|
|
|
(348)
|
|
|
(21)
|
|
|
(752)
|
|
|
(34)
|
|
|
(680)
|
|
|
(17)
|
|
Cash operating costs
(by-product basis)
|
$
|
6,362
|
|
|
$
|
1,350
|
|
|
$
|
14,065
|
|
|
$
|
833
|
|
|
$
|
22,301
|
|
|
$
|
1,026
|
|
|
$
|
31,910
|
|
|
$
|
802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Six Months
Ended
|
Per
Tonne(iii)
|
June 30,
2021
|
|
June 30,
2020
|
|
June 30,
2021
|
|
June 30,
2020
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
|
(thousands)
|
|
($ per
tonne)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
1,745
|
|
|
|
|
776
|
|
|
|
|
3,387
|
|
|
|
|
2,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
$
|
6,485
|
|
|
$
|
4
|
|
|
$
|
15,419
|
|
|
$
|
20
|
|
|
$
|
22,624
|
|
|
$
|
7
|
|
|
$
|
35,469
|
|
|
$
|
15
|
|
Inventory and other
adjustments(v)
|
(12)
|
|
|
—
|
|
|
(1,147)
|
|
|
(2)
|
|
|
230
|
|
|
—
|
|
|
(3,385)
|
|
|
(1)
|
|
Minesite operating
costs
|
$
|
6,473
|
|
|
$
|
4
|
|
|
$
|
14,272
|
|
|
$
|
18
|
|
|
$
|
22,854
|
|
|
$
|
7
|
|
|
$
|
32,084
|
|
|
$
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) The information
set out in this table reflects the Company's 50% interest in the
Canadian Malartic mine.
|
(ii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's use of total
cash costs per ounce.
|
(iii) Minesite costs
per tonne is not a recognized measure under IFRS and this data may
not be comparable to data reported by other gold producers. See
"Note Regarding Certain Measures of Performance" for more
information on the Company's use of minesite costs per
tonne.
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
(v) This inventory
and other adjustments reflect production costs associated with the
portion of production still in inventory and smelting, refining and
marketing charges associated with production.
|
(vi) The Meadowbank
Complex's cost calculations per ounce of gold produced for the
three and six months ended June 30, 2021 exclude 348 ounces of
payable gold production which were produced during these periods,
as commercial production at the Amaruq Underground project has not
yet been achieved.
|
(vii) The Meadowbank
Complex's cost calculations per tonne for the three and six months
ended June 30, 2021 exclude 1,913 tonnes of ore from the
Amaruq Underground project which were processed during these
periods, as commercial production at the Amaruq Underground project
has not yet been achieved.
|
(viii) The Meliadine
mine's cost calculations per ounce of gold produced for the three
and six months ended June 30, 2021 exclude 9,053 and 17,176 ounces
of payable gold production, respectively, which were produced
during these periods, as commercial production at the Tiriganiaq
open pit deposit has not yet been achieved.
|
(ix) The Meliadine
mine's cost calculations per tonne for the three and six months
ended June 30, 2021 exclude 93,340 and 170,377 tonnes of ore from
the Tiriganiaq open pit deposit, respectively, which were processed
during these periods, as commercial production at the Tiriganiaq
open pit deposit has not yet been achieved.
|
* The Canadian
Malartic mine's cost calculations per ounce of gold produced for
the three and six months ended June 30, 2020 exclude 2,651 and
5,625 ounces of payable gold production, respectively, which were
produced prior to the achievement of commercial production at the
Barnat deposit on September 30, 2020.
|
(xi) The Canadian
Malartic mine's cost calculations per tonne for the three and six
months ended June 30, 2020 exclude 126,279 and 261,343 tonnes of
ore from the Barnat deposit, respectively, which were processed
prior to the achievement of commercial production at the Barnat
deposit on September 30, 2020.
|
(xii) The Creston
Mascota mine's cost calculations per tonne for the three and six
months ended June 30, 2021 exclude approximately $2.0 million and
$4.4 million of production costs incurred, respectively, during
these periods following the cessation of mining activities at the
Bravo pit during the third quarter of 2020.
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce Produced and All-in
Sustaining Costs per Ounce of Gold Produced
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Production costs per
the condensed interim consolidated statements of income (thousands
of United States dollars)
|
$
|
427,172
|
|
|
$
|
280,394
|
|
|
$
|
839,572
|
|
|
$
|
636,496
|
Adjusted gold
production (ounces)(i)(ii)(iii)
|
516,605
|
|
|
328,413
|
|
|
1,025,286
|
|
|
736,805
|
Production costs per
ounce of adjusted gold production
|
$
|
827
|
|
|
$
|
854
|
|
|
$
|
819
|
|
|
$
|
864
|
Adjustments:
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(iv)
|
(15)
|
|
|
21
|
|
|
(14)
|
|
|
19
|
Total cash costs per
ounce of gold produced (co-product basis)(v)
|
$
|
812
|
|
|
$
|
875
|
|
|
$
|
805
|
|
|
$
|
883
|
By-product metal
revenues
|
(64)
|
|
|
(50)
|
|
|
(64)
|
|
|
(51)
|
Total cash costs per
ounce of gold produced (by-product basis)(v)
|
$
|
748
|
|
|
$
|
825
|
|
|
$
|
741
|
|
|
$
|
832
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
215
|
|
|
228
|
|
|
195
|
|
|
199
|
General and
administrative expenses (including stock options)
|
61
|
|
|
78
|
|
|
74
|
|
|
76
|
Non-cash reclamation
provision, sustaining leases and other
|
13
|
|
|
11
|
|
|
12
|
|
|
11
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
$
|
1,037
|
|
|
$
|
1,142
|
|
|
$
|
1,022
|
|
|
$
|
1,118
|
By-product metal
revenues
|
64
|
|
|
50
|
|
|
64
|
|
|
51
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
$
|
1,101
|
|
|
$
|
1,192
|
|
|
$
|
1,086
|
|
|
$
|
1,169
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Adjusted gold
production for the three and six months ended June 30, 2021 exclude
348 ounces of payable production of gold at the Meadowbank Complex
which were produced during these periods, as commercial production
at the Amaruq Underground project has not yet been
achieved.
|
(ii) Adjusted gold
production for the three and six months ended June 30, 2021 exclude
9,053 and 17,176 ounces of payable production of gold at the
Meliadine mine, respectively, which were produced during these
periods, as commercial production at the Tiriganiaq open pit
deposit has not yet been achieved.
|
(iii) Adjusted gold
production for the three and six months ended June 30, 2020 exclude
2,651 and 5,625 ounces of payable production of gold at the
Canadian Malartic mine, respectively, which were produced prior to
the achievement of commercial production at the Barnat deposit on
September 30, 2020.
|
(iv) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue. Other adjustments include primarily the
addition of smelting, refining and marketing charges to production
costs.
|
(v) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See "Note Regarding Certain Measures of
Performance" for more information on the Company's use of total
cash cost per ounce of gold produced.
|
Reconciliation of
Net Income to Operating Margin(i)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
(thousands of
United States dollars)
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
Net income for the
period
|
$
|
189,561
|
|
|
$
|
105,301
|
|
|
$
|
325,709
|
|
|
$
|
83,736
|
Income and mining
taxes expense
|
92,686
|
|
|
12,250
|
|
|
186,126
|
|
|
57,146
|
Other
expenses
|
5,744
|
|
|
23,735
|
|
|
3,235
|
|
|
28,275
|
Foreign currency
translation loss (gain)
|
2,440
|
|
|
3,322
|
|
|
(638)
|
|
|
7,168
|
Gain on derivative
financial instruments
|
(21,120)
|
|
|
(62,175)
|
|
|
(54)
|
|
|
(19,573)
|
Finance
costs
|
23,261
|
|
|
25,000
|
|
|
45,429
|
|
|
52,762
|
General and
administrative
|
31,325
|
|
|
25,546
|
|
|
76,258
|
|
|
56,089
|
Amortization of
property, plant, and mine development
|
175,309
|
|
|
129,465
|
|
|
356,424
|
|
|
282,974
|
Exploration and
corporate development
|
39,942
|
|
|
14,337
|
|
|
68,651
|
|
|
43,980
|
Operating
margin(i)
|
$
|
539,148
|
|
|
$
|
276,781
|
|
|
$
|
1,061,140
|
|
|
$
|
592,557
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers. See "Note
Regarding Certain Measures of Performance" for more information on
the Company's use of operating margin.
|
View original
content:https://www.prnewswire.com/news-releases/agnico-eagle-reports-second-quarter-2021-results--strong-operating-results-with-record-safety-performance-reintegration-of-nunavummiut-workforce-underway-at-meliadine-and-meadowbank-underground-development-and-surface-construct-301343619.html
SOURCE Agnico Eagle Mines Limited