Following a brief two-year period of increased development
capital spending, largely due to the one-year advancement of the
Meliadine project, the Company is forecasting a return to free cash
generation in 2019. At current foreign exchange rate
assumptions (1.28 US$/C$,
1.10 EUR/US$, 18.00 US$/MXP) total capital expenditures are
forecast to be approximately $850
million in 2017, approximately $950
million in 2018 and approximately $500 million in 2019. Annual sustaining
capital expenditures (included in the above) for 2017 and beyond
are expected to remain stable at approximately $300 million.
Funding for the development of the Amaruq satellite deposit at
Meadowbank and the Meliadine project is expected to come from
existing cash balances, internally generated cash and if needed,
drawings on the Company's lines of credit. The
Company has significant debt capacity, as reflected by its
investment grade credit rating.
Additional Near-Term Production Potential (2018 to
2020)
The Company is evaluating several potential opportunities (none
of which have yet been approved for construction) at a number of
existing operations to build further value and enhance the
production profile in 2018 through 2020. These opportunities
are summarized in the table below.
Minesite/Region
|
Opportunity
|
LaRonde
Complex
|
Potential to mine
additional ounces from LaRonde Zone 5 (previously referred to as
Bousquet Zone 5)
|
Goldex
|
Potential for
increased throughput from Deep Zone 1 and potential for advanced
development of Deep Zone 2. Also potential for increased
production from Akasaba West once permitting complete
|
Canadian Malartic
(50%)
|
Potential production
from near pit zones and/or Odyssey South underground
|
Meadowbank/Amaruq
|
Potential to
accelerate development schedule and drilling to expand known open
pit deposit and evaluate the underground potential at the Amaruq
deposit
|
Meliadine
|
Potential to
accelerate construction schedule and testing the depth and lateral
extensions of the Wesmeg, Normeg and Tiriganiaq zones
|
Kittila
|
Potential expansion
to 2.0 million tonnes per annum, including optimization of the
Rimpi and Sisar zones
|
Mexico
|
Evaluation of
satellite zones at Pinos Altos/Creston Mascota and La
India
|
Development Pipeline Expected to Provide Further Production
Growth in 2021 and Beyond
Agnico Eagle has a strong pipeline of development projects that
could provide further production growth in 2021 and beyond.
These opportunities are typically at an earlier stage than those
outlined above. A summary of the longer term opportunities
are presented in the following table.
Minesite/Region
|
Opportunity
|
LaRonde
Complex
|
Potential development
of LaRonde 3 (located below a depth of 3.1 kilometres) where recent
drilling has encountered high grade gold intersections
|
Goldex
|
Evaluation of the
South Zone, G Zone and Deep 3 Zone and the neighboring Joubi Mine
École properties
|
Canadian Malartic
(50%)
|
Evaluation of the
potential for production from Odyssey North underground
|
Kittila
|
Further optimization
of underground mine and development of the lower mine with shaft
access
|
Meadowbank
|
Evaluation of the
potential to carry out underground mining at the Amaruq deposit and
the potential to expand the higher grade V Zone
|
Meliadine
|
Further drill testing
of known zones and gold occurrences on the 80-kilometre-long
greenstone belt
|
Barsele
|
Testing additional
mineralized zones and evaluation of production potential
|
El
Barqueno
|
Evaluation of several
potential production scenarios
|
Hammond Reef
(50%)
|
Potential for
production in a higher margin environment
|
Kirkland Lake
(50%)
|
Potential production
scenario at Upper Beaver and potential synergies from development
of other properties in the region
|
Four-Year Guidance Plan Outlines a Growing Production Profile
with Stable Costs
Mine by mine production and cost guidance for 2017, mine by mine
production forecasts for 2018 and 2019 and a consolidated
production forecast for 2020 are presented below.
Opportunities to improve these forecasts are ongoing.
Estimated Payable
Gold Production
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
|
Actual
|
|
Forecast
|
|
Forecast
|
|
Forecast
|
Northern
Business
|
|
|
|
|
|
|
|
LaRonde
|
305,788
|
|
315,000
|
|
360,000
|
|
365,000
|
|
LaRonde Zone
5
|
-
|
|
-
|
|
20,000
|
|
35,000
|
Canadian Malartic
(50%)
|
292,514
|
|
300,000
|
|
325,000
|
|
320,000
|
Lapa
|
73,930
|
|
15,000
|
|
-
|
|
-
|
Goldex
|
120,704
|
|
105,000
|
|
115,000
|
|
120,000
|
Kittila
|
202,508
|
|
190,000
|
|
200,000
|
|
210,000
|
Meadowbank
|
312,214
|
|
320,000
|
|
165,000
|
|
-
|
|
Amaruq
Deposit
|
-
|
|
-
|
|
-
|
|
135,000
|
Meliadine
|
-
|
|
-
|
|
-
|
|
125,000
|
|
1,307,658
|
|
1,245,000
|
|
1,185,000
|
|
1,310,000
|
Southern
Business
|
|
|
|
|
|
|
|
Pinos
Altos
|
192,772
|
|
170,000
|
|
175,000
|
|
175,000
|
Creston
Mascota
|
47,296
|
|
40,000
|
|
30,000
|
|
5,000
|
La India
|
115,162
|
|
100,000
|
|
110,000
|
|
110,000
|
|
355,230
|
|
310,000
|
|
315,000
|
|
290,000
|
Total Gold
Production
|
1,662,888
|
|
1,555,000
|
|
1,500,000
|
|
1,600,000
|
Total cash costs
per ounce on a by-product basis of gold produced ($
per ounce):
|
|
2016
|
|
2017
|
|
Actual
|
|
Forecast
|
Northern
Business
|
|
|
|
LaRonde
|
$
|
501
|
|
$
|
510
|
Canadian Malartic
(50%)
|
606
|
|
578
|
Lapa
|
732
|
|
1,002
|
Goldex
|
532
|
|
667
|
Kittila
|
699
|
|
728
|
Meadowbank
|
715
|
|
683
|
|
$
|
622
|
|
$
|
623
|
Southern
Business
|
|
|
|
Pinos
Altos
|
356
|
|
474
|
Creston
Mascota
|
516
|
|
812
|
La India
|
395
|
|
583
|
|
$
|
390
|
|
$
|
553
|
Total
|
$
|
573
|
|
$
|
609
|
Currency and commodity assumptions used for 2017 cost estimates
and sensitivities are presented in the table below:
2017 commodity and
currency price assumptions
|
|
Approximate impact
on total cash costs per ounce basis
|
Silver
($/oz)
|
16.00
|
|
$1 / oz change in
silver price
|
$3
|
Copper
($/mt)
|
5,500
|
|
10% change in copper
price
|
$2
|
Zinc
($/mt)
|
2,425
|
|
10% change in zinc
price
|
$1
|
Diesel
(C$/ltr)
|
0.80
|
|
10% change in diesel
price
|
$3
|
US$/C$
|
1.28
|
|
1.0% change in
US$/C$
|
$4
|
EURO$/US$
|
1.10
|
|
1.0% change in
Euro$/US$
|
$1
|
US$/MXP
|
18.00
|
|
10% change in
US$/MXP
|
$5
|
The estimated production level in 2018 is currently forecast to
be approximately 1.50 million ounces of gold, which is unchanged
from the 1.50 million ounces in the February
2016 forecast. The Company is currently evaluating
potential opportunities to further optimize and improve production
levels in 2018 and beyond (see discussion below for additional
details).
With the start of production at the two Nunavut projects in 2019, full year guidance
for 2019 is now expected to be approximately 1.60 million ounces of
gold.
In 2020, consolidated production is forecast to be approximately
2.0 million ounces of gold. In 2018 through 2020, the Company
expects total cash costs per ounce and AISC to be below the 2017
ranges based on the currency and commodity assumptions used for
2017 as described above.
Depreciation Guidance
Agnico Eagle expects its 2017 depreciation and amortization
expense to be between $580 and $610
million.
General & Administrative Cost Guidance
Agnico Eagle expects 2017 general and administration expense to
be between $70 and $80 million,
excluding share based compensation. In 2017, share based
compensation is expected to be between $25
and $35 million (including non-cash stock option expense of
between $15 and $20 million), which
is consistent with previous years.
Please see the supplemental financial data section of the
Financial and Operating Database on the Company's website for
additional historical financial data.
Tax Guidance for 2017
For 2017, the effective tax rates are expected to be:
Canada - 40% to 50%
Mexico - 35% to 40%
Finland - 20%
The Company's overall tax rate is expected to be between 40% and
45%.
Updated Three Year Guidance Plan; Incorporating Initial
Production from Meliadine and the Amaruq Satellite Deposit at
Meadowbank
Since the prior three-year production guidance of February 10, 2016 ("Previous Guidance"), there
have been several operating developments resulting in changes to
the overall three-year production profile. Descriptions of
these changes are set out below.
Northern Business
ABITIBI REGION, QUEBEC
LaRonde
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
275,000
|
320,000
|
375,000
|
N.A.
|
Current Guidance
(oz)
|
305,788
(actual)
|
315,000
|
360,000
|
365,000
|
LaRonde Forecast
2017
|
Ore Milled ('000
tonnes)
|
Gold (g/t)
|
Gold Mill Recovery
(%)
|
Silver
(g/t)
|
Silver Mill Recovery
(%)
|
Zinc (%)
|
Zinc Mill Recovery
(%)
|
Copper (%)
|
Copper Mill Recovery
(%)
|
Minesite Costs per
Tonne6
|
|
2,150
|
4.77
|
95.6%
|
20.03
|
77.5%
|
0.51%
|
66.9%
|
0.25%
|
82.0%
|
C$115
|
___________________________
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".
At LaRonde, the slightly lower production guidance for 2017 and
2018 (as compared to Previous Guidance) is primarily due to changes
in the mining sequence. In 2017, approximately 87% of the ore
is expected to come from the higher grade lower mine area (below
the 248 level) compared to 89% in the Previous Guidance. The
year-over-year production forecasts through 2019 largely reflect an
increase in grade closer to that of the average mineral
reserves.
LaRonde Zone 5
Forecast
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
N.A.
|
N.A.
|
N.A.
|
Current Guidance
(oz)
|
N.A.
|
20,000
|
35,000
|
In 2003, the Company acquired the Bousquet gold property from
Barrick Gold Corporation. The property adjoins the LaRonde
mining complex to the east and hosts the Bousquet Zone 5,
which previous operators had partly exploited by open pit.
Given its proximity to the LaRonde complex, the Company has renamed
the property LaRonde Zone 5.
LaRonde Zone 5 has been approved for development (subject to
permitting approval). Permits are expected to be received by
mid-2018, with mining expected to commence shortly
thereafter. Please see below for additional details on
LaRonde Zone 5.
Canadian Malartic
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
280,000
|
295,000
|
305,000
|
N.A.
|
Current Guidance
(oz)
|
292,514
(actual)
|
300,000
|
325,000
|
320,000
|
Canadian Malartic
Forecast 2017
|
Ore Milled ('000
tonnes)
|
Gold (g/t)
|
Gold Mill Recovery
(%)
|
Minesite Costs per
Tonne
|
|
9,425
|
1.11
|
89.3%
|
C$24
|
At Canadian Malartic (in which Agnico Eagle has 50% ownership)
guidance for 2017 and 2018 has been slightly increased due to a
change in the life-of-mine plan. The updated plan provides
for earlier access to higher grade zones that are located deeper in
the Canadian Malartic pit.
Lapa
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
60,000
|
-
|
-
|
N.A.
|
Current Guidance
(oz)
|
73,930
(actual)
|
15,000
|
-
|
-
|
Lapa Forecast
2017
|
Ore Milled ('000
tonnes)
|
Gold (g/t)
|
Gold Mill Recovery
(%)
|
Minesite Costs per
Tonne
|
|
140
|
4.04
|
82.5%
|
C$134
|
Under the current life of mine plan, Lapa is expected to operate
until the end of the first quarter of 2017, with production coming
from Zone Deep East and Zone 7 Deep. The Company is
evaluating opportunities to continue production into the second
quarter of 2017.
Goldex
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
105,000
|
105,000
|
130,000
|
N.A.
|
Current Guidance
(oz)
|
120,704
(actual)
|
105,000
|
115,000
|
120,000
|
Goldex Forecast
2017
|
Ore Milled ('000
tonnes)
|
Gold (g/t)
|
Gold Mill Recovery
(%)
|
Minesite Costs per
Tonne
|
|
2,360
|
1.51
|
92.0%
|
C$38
|
At Goldex, production guidance in 2017 is in line with Previous
Guidance. Production guidance in 2018 has been lowered to
reflect the transition from mining the M and E satellite zones and
the start of production from the Deep 1 Zone. Commissioning
of the Deep 1 project remains on budget and schedule for early
2018.
Agnico Eagle acquired the Akasaba West gold-copper
deposit in January 2014. Located less than 30 kilometres from
Goldex, the Akasaba West deposit could create flexibility and
synergies for the Company's operations in the Abitibi region by
utilizing extra milling capacity at both Goldex and LaRonde, while
reducing overall costs. The permitting process is ongoing and
the Company expects to begin sourcing open pit ore from Akasaba
West in 2019.
NUNAVUT REGION
Meadowbank
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
305,000
|
320,000
|
155,000
|
N.A.
|
Current Guidance
(oz)
|
312,214
(actual)
|
320,000
|
165,000
|
-
|
Meadowbank
Forecast 2017
|
Ore Milled ('000
tonnes)
|
Gold (g/t)
|
Gold Mill Recovery
(%)
|
Minesite Costs per
Tonne
|
|
3,881
|
2.85
|
90.0%
|
C$73
|
At Meadowbank, production guidance for 2018 has increased
slightly over Previous Guidance due to a slight increase in mineral
reserves at year-end 2016, and the mining of additional higher
grade ore in the Portage pit. At the Vault deposit,
opportunities are being investigated to potentially extend
production through year-end 2018.
Amaruq
Forecast
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
N.A.
|
N.A.
|
N.A.
|
Current Guidance
(oz)
|
N.A.
|
N.A.
|
135,000
|
In 2016, the Company completed an internal technical study on
the Amaruq satellite deposit at Meadowbank. Based on this
study, the Company has approved the project for development pending
the receipt of the required permits, which are currently expected
to be received by the second quarter of 2018. Production is
currently forecast to begin in the third quarter of 2019
(approximately 4 to 5 months of production in 2019).
Additional details on the project (including operational
parameters) are described below.
Meliadine
Forecast
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
N.A.
|
N.A.
|
N.A.
|
Current Guidance
(oz)
|
N.A.
|
N.A.
|
125,000
|
In 2016, internal studies were carried out to optimize the
previous Meliadine mine plan that had been outlined in an updated
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101") technical report dated February 11, 2015 (see Agnico Eagle news release
of March 12, 2015). These
internal studies evaluated various opportunities to improve the
project economics and the after-tax internal rate of return.
Based on the results of these internal studies, the Company's
Board of Directors has approved the construction of the Meliadine
project. The mine is expected to begin operations in the
third quarter of 2019 (approximately 4 months of production in
2019), which is approximately one year ahead of the previous
schedule. Additional details on the project (including
operational parameters) are described below.
FINLAND
Kittila
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
200,000
|
190,000
|
200,000
|
N.A.
|
Current Guidance
(oz)
|
202,508
(actual)
|
190,000
|
200,000
|
210,000
|
Kittila Forecast
2017
|
Ore Milled ('000
tonnes)
|
Gold (g/t)
|
Gold Mill Recovery
(%)
|
Minesite Costs per
Tonne
|
|
1,600
|
4.30
|
86.0%
|
€
78.00
|
At Kittila, production guidance for 2017 and 2018 is unchanged
from the Previous Guidance. The increased production in 2019
is due to higher grades in the mine sequence. The Company is
carrying out studies to evaluate the economics of increasing
throughput rates to 2.0 million tonnes per annum from the current
rate of 1.6 million tonnes. This increased rate could also be
further supported by the development of the Rimpi and Sisar
zones.
Southern Business
Pinos Altos
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
175,000
|
175,000
|
180,000
|
N.A.
|
Current Guidance
(oz)
|
192,772
(actual)
|
170,000
|
175,000
|
175,000
|
Pinos Altos
Forecast 2017
|
Total Ore ('000
tonnes)
|
Gold (g/t)
|
Gold Recovery
(%)
|
Silver
(g/t)
|
Silver Mill Recovery
(%)
|
Minesite Costs per
Tonne
|
|
2,210
|
2.52
|
95.0%
|
71.02
|
52.9%
|
$
55
|
At Pinos Altos, production
guidance for 2017 and 2018 is slightly below Previous Guidance,
primarily due to changes in the mining sequence. In 2016,
exploration at the Cerro Colorado Zone outlined additional
mineralization on the boundaries of the zone. Further
drilling will be carried out in 2017 to evaluate this
potential.
Creston Mascota
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
45,000
|
40,000
|
40,000
|
N.A.
|
Current Guidance
(oz)
|
47,296
(actual)
|
40,000
|
30,000
|
5,000
|
Creston Mascota
Forecast 2017
|
Total Ore ('000
tonnes)
|
Gold (g/t)
|
Gold Recovery
(%)
|
Silver
(g/t)
|
Silver Recovery
(%)
|
Minesite Costs per
Tonne
|
|
2,000
|
1.01
|
61.8%
|
11.54
|
13.8%
|
$ 17
|
At Creston Mascota, production guidance in 2018 is below
Previous Guidance due to the winding down of mining activities
under the current life-of-mine plan. Recent exploration at
Bravo and Madrono has yielded
positive results and further drilling is planned for 2017.
This work could lead to the delineation of additional mineral
reserves and mineral resources, which could extend the mine life at
Creston Mascota.
La India
Forecast
|
2016
|
2017
|
2018
|
2019
|
Previous Guidance
(oz)
|
100,000
|
105,000
|
115,000
|
N.A.
|
Current Guidance
(oz)
|
115,162
(actual)
|
100,000
|
110,000
|
110,000
|
La India Forecast
2017
|
Total Ore ('000
tonnes)
|
Gold (g/t)
|
Gold Recovery
(%)
|
Silver
(g/t)
|
Silver Recovery
(%)
|
Minesite Costs per
Tonne
|
|
5,300
|
0.89
|
66.0%
|
2.10
|
11.0%
|
$ 11
|
At La India, production guidance in 2017 and 2018 is slightly
below Previous Guidance reflecting changes in the grade and mining
sequence. The 2016 exploration program resulted in a 18%
increase in mineral reserves year-over-year and a 5% increase in
measured and indicated mineral resources. Step out drilling
in 2016 at the nearby El Realito
project also yielded encouraging results, and additional work is
planned for 2017.
Amaruq Satellite Deposit – Gold Resources Continues to
Expand, Road Construction in Progress
Agnico Eagle has a 100% interest in the Amaruq satellite deposit
at Meadowbank, which sits on a large 114,761 hectare property,
approximately 50 kilometres northwest of the Meadowbank mine.
A significant gold discovery was made on the property in 2013, and
activities since that time have focused on the development of
satellite mineralization to feed the existing Meadowbank mill.
At December 31, 2016, the Amaruq
satellite deposit at Meadowbank contained an open pit indicated
mineral resource of 2.1 million ounces (16.9 million tonnes grading
3.88 g/t gold); an open pit inferred mineral resource of 763,000
ounces (4.9 million tonnes grading 4.81 g/t gold); and an
underground inferred mineral resource of 1.4 million ounces (6.8
million tonnes grading 6.22 g/t gold). Further details on the
mineral resources are presented in the mineral reserve and mineral
resource section of this news release.
The indicated mineral resource grade declined from the previous
inferred resource grade estimate primarily due to the
inclusion of a dilution factor in the calculation of the indicated
mineral resources, and the impact of a slightly lower cut-off grade
(based on parameters from the internal technical study).
Deeper portions of the open pit deposit show higher mineral
grades. The underground inferred mineral resource grade has
also slightly declined from the previous estimate given that it is
now constrained by preliminary stope blocks.
All of the of the indicated mineral resources are contained in
the Whale Tail open pit, while approximately 64% (490,000 ounces)
of the open pit inferred mineral resources (2.9 million tonnes
grading 5.23 g/t gold) are located in the V Zone. The Whale
Tail and V Zone deposits extend to depths of approximately 250
metres and 150 metres, respectively, and both pits are open for
expansion.
The underground inferred mineral resources are located in the
Whale Tail and V Zone deposits. Mineralization in the Whale
Tail deposit has been extended by drilling in two directions; along
the east-plunging ore shoot to a depth of approximately 500 metres
and locally as deep as 600 metres in the central portion of Whale
Tail. The V Zone has been traced to 542 metres below surface
and remains open at depth.
In 2016, the Company completed an internal technical study on
the Amaruq satellite deposit at Meadowbank. Based on this
study, the Company has approved the project for development pending
the receipt of the required permits, which are currently expected
to be received by the second quarter of 2018.
In the study, a conventional open pit mining operation is
forecast to begin on the Whale Tail deposit in the third quarter of
2019. This mining operation will utilize the existing
infrastructure at the Meadowbank mine (mining equipment, mill,
tailings, camp and airstrip). Minimal infrastructure will be
built at the Amaruq site (truck shop/warehouse, fuel storage and a
small camp facility). In addition, a new truck fleet will be
required for hauling ore to the Meadowbank mill.
The project will be accessed by a 64 kilometre road from the
Meadowbank site. This road is expected to be completed as an
exploration road by the fourth quarter of 2017, and the expectation
is to expand it to a production road once all of the necessary
permits are received. The ore will be hauled to the
Meadowbank mill using off-road type trucks and the mill is expected
to operate at 9,000 tonnes per day ("tpd"). The mill will
require minor modifications, specifically the addition of a
continuous gravity and regrind circuit.
The initial plan calls for the production of approximately 2.0
million ounces of gold between 2019 and 2024, with pre-mining
activities starting in 2018 at the Whale Tail deposit. This
represents less than 50 percent of the currently known mineral
resource base. All licenses and permits for Phase I (Whale
Tail pit) are expected to be received by the third quarter of
2018.
Metallurgical recoveries are estimated to average approximately
93%, resulting in average annual gold production of approximately
369,000 ounces in years two through six. The life of mine
average total cash costs per ounce from the Amaruq satellite
deposit at Meadowbank are expected to be approximately $770. The life of mine average AISC is
expected to be approximately $850 per
ounce. Detailed operating parameters for the project are set
out in the table below.
Initial capital costs are estimated to be approximately
$330 million, while total sustaining
capital costs are estimated to be approximately $25 million per year. Mine closure costs
are estimated to be approximately $16
million.
The Amaruq satellite deposit extends the Meadowbank mine life
which will allow additional time for the Company to develop and
implement an exploration strategy to expand the Amaruq deposit and
to evaluate additional opportunities on the property.
Summary of the Amaruq Project Key Facts and
Parameters
|
|
Indicated Mineral
Resource (Open Pit)
|
16.9 million tonnes
of ore grading 3.88 g/t gold (2.1 million oz)
|
Inferred Mineral
Resource (Open Pit)
|
4.9 million tonnes of
ore grading 4.81 g/t gold (763,000 oz)
|
Inferred Mineral
Resource (Underground)
|
6.8 million tonnes of
ore grading 6.22 g/t gold (1.4 million oz)
|
|
|
Estimated
Production
|
1,980,000
(Resources)
|
Average
metallurgical recovery
|
Approximately
93%
|
Average Annual
gold production
|
Approximately 135,000
ounces based on 4 to 5 months of production (year 1)
|
|
Approximately 255,000
ounces (year 2)
|
|
Approximately 300,000
ounces (year 3)
|
|
Approximately 430,000
ounces (years 4 – 6)
|
|
|
Average Annual
Mill throughput
|
Approximately
1,279,000 tonnes based on 4 to 5 months of production (year
1)
|
|
Approximately
2,987,000 tonnes (year 2)
|
|
Approximately
3,265,000 tonnes (year 3)
|
|
Approximately
3,285,000 tonnes (years 4 - 6)
|
|
|
|
|
Minesite costs per
tonne
|
Approximately C$110
per tonne milled (Life of Mine)
|
|
|
Average total cash
costs on a by-product basis
|
Approximately $770
per ounce of gold produced (Life of Mine)
|
Average all-in
sustaining costs per ounce
|
Approximately $850
per ounce of gold produced (Life of Mine)
|
|
|
Mine
life
|
Approximately 6
years
|
Initial capital
costs to the first ounce produced
|
Approximately $330
million
|
Sustaining capital
costs
|
Approximately $25
million per year
|
Reclamation
costs
|
Approximately $16
million
|
|
|
|
Economic
Analysis:
|
|
US$1,200 per ounce
gold
|
|
US$/C$ exchange rate
of $1.25
|
|
Statutory income tax
rate: Approximately 26%
|
2016 Amaruq Work Program – Focus on Conversion and Exploration
Drilling
In the fourth quarter of 2016, 12 holes (3,452 metres) were
drilled at the Amaruq satellite deposit at Meadowbank. This
brought the full year total to 526 holes totaling 127,751
metres. All of this drilling was included in the December 31, 2016 mineral resource estimates
outlined above.
The 2016 drill program focused primarily on the conversion of
mineral resources at Whale Tail and expansion of the IVR
Zone. Work at the IVR Zone successfully delineated a second
source of open pit ore, now referred to as the V Zone.
At year-end 2016, construction on the 64 kilometre all-weather
exploration road reached kilometre 27.5 as planned. The
permit for the Amaruq exploration ramp and bulk sample collection
was received on December 1, 2016,
approximately two months ahead of schedule.
2017 Amaruq Activities - Focus On Infill Drilling The V Zone And
Finding Additional Near Surface Deposits
Of the initial $330 million
capital cost estimate, approximately $73
million will be spent in 2017, and primarily includes
completion of the all-weather exploration road, additional
technical studies and the procurement of materials and equipment
for the 2018 construction season. This spending is included
in the Meadowbank capital cost estimate for 2017.
The first phase of a planned 75,000-metre drill program (costing
approximately $22 million) commenced
in early February 2017. The goals of this program are to:
- Infill and expand the known mineral resource at the V Zone
- Test for westerly extensions of the Whale Tail deposit
- Further evaluate the underground potential of the Whale Tail
deposit
- Test other favourable targets to potentially outline additional
sources of open pit ore
The Company is working closely with the Nunavut Impact Review
Board ("NIRB") and the Nunavut Water Board ("NWB") on the Whale
Tail pit joint permitting process, which is progressing along
the schedule and process outlined by NIRB in November 2016.
On January 27, 2017, NIRB and NWB
announced the start of the project technical review,
which will lead to public hearings taking place at the
end of third quarter of 2017. Approval for the project
certificate and water license are expected in the third quarter of
2018.
The estimated capital budget for the Amaruq satellite deposit at
Meadowbank in 2018 is approximately $160
million. Work will be focused on site development
(primarily dykes, and surface infrastructure) and pre-stripping
activities ahead of the proposed commencement of mining in
2019.
Meliadine Project - First Production Forecast to Commence in
the Third Quarter of 2019, One Year Ahead of Previous
Forecast
Located near Rankin Inlet, Nunavut,
Canada, the Meliadine project was acquired in July 2010, and is Agnico Eagle's largest gold
deposits in terms of mineral resources. The Company owns 100%
of the 111,757 hectare property.
At December 31, 2016, the
Meliadine property was estimated to hold proven and probable
mineral reserves of 3.4 million ounces (14.5 million tonnes grading
7.32 g/t gold), indicated mineral resources of 3.3 million ounces
(20.8 million tonnes grading 4.95 g/t gold) and inferred mineral
resources of 3.6 million ounces (14.7 million tonnes grading 7.51
g/t gold). Further details on the Meliadine mineral resources
are presented in the mineral reserve and mineral resource section
of this news release. In addition, there are numerous other
known gold occurrences along the 80-kilometre-long greenstone belt
that require further evaluation.
In 2016, internal studies were carried out to optimize the
previous Meliadine mine plan that had been outlined in an updated
NI 43-101 technical report dated February
11, 2015 (see Agnico Eagle news release of March 12, 2015).
These internal studies evaluated various opportunities to
improve the project economics and the after-tax internal rate of
return. The studies looked at:
- The potential to extract and advance additional ounces of gold
into the mine plan from the Tiriganiaq and Wesmeg/Normeg deposits,
which could extend the mine life and increase annual
production
- Optimization of the mine plan (accelerated access to higher
grade areas)
- Improvements to operating costs and capital costs
(rationalization of Phase 1 infrastructure)
- Improvement to procurement, logistical and construction
schedules (to shorten the project construction timeline)
Based on the results of these internal studies, the Company's
Board of Directors has approved the construction of the Meliadine
project. The mine is expected to begin operations in the
third quarter of 2019, which is approximately one year ahead of the
previous schedule. The current mine plan will be focused on
the Tiriganiaq and nearby Wesmeg mineralized zones that will be
accessed from the Tiriganiaq underground infrastructure.
Over an estimated 14 year mine life, it is expected that
approximately 5.3 million ounces of gold will be produced at
Meliadine. This represents approximately half of the
currently known mineral reserve and mineral resource base.
The current mine plan outlines a phased approach to the
development of the Meliadine operations. The Phase 1 mill
capacity is expected to be approximately 3,750 tpd, with ore being
sourced entirely from underground in years one to four. The
mill capacity in Phase 2 is expected to increase to approximately
6,000 tpd, with ore being sourced from both the underground and
open pits starting in year 5.
The ore zones will be mined using both transverse (approximately
60%) and longitudinal (approximately 40%) stoping methods.
The primary stopes will be filled with paste backfill, while
secondary stopes will be back filled with cemented waste
rock. The mill will employ conventional carbon-in-leach
processing technology.
Metallurgical recoveries are estimated to average approximately
96%, resulting in average annual gold production of approximately
400,000 ounces in years two through fourteen. The life of
mine average total cash costs per ounce at Meliadine are expected
to be approximately $590. The
life of mine average AISC is expected to be approximately
$720 per ounce. Detailed
operating parameters for the project are set out in the table
below.
Initial capital costs are estimated at approximately
$900 million, and consist of
approximately $550 million for
surface construction and approximately $350
million for underground construction and development, owners
costs and drilling. Sustaining capital costs are forecast to
total approximately $48 million per
year over the life of mine. Mine closure costs are estimated
to be approximately $49 million.
Summary of the Meliadine Project Key Facts and
Parameters
|
|
Proven &
Probable Mineral Reserves
|
14.5 million tonnes
of ore grading 7.32 g/t gold (3.4 million oz)
|
Measured and
Indicated Mineral Resources
|
20.8 million tonnes
grading 4.95 g/t gold (3.3 million oz)
|
Inferred Mineral
Resource
|
14.7 million tonnes
grading 7.51 g/t gold (3.6 million oz)
|
|
|
Estimated
Production
|
5,315,000
(Reserves and Resources)
|
|
|
Average
metallurgical recovery
|
Approximately
96%
|
Average annual
gold production
|
Approximately 125,000
ounces based on 4 months of production (year 1)*
|
|
Approximately 375,000
ounces (year 2)
|
|
Approximately 360,000
ounces (year 3)
|
|
Approximately 405,000
ounces (years 4 – 14)
|
|
|
Average annual
Mill throughput
|
Approximately 377,000
tonnes based on 4 months of production (year 1)
|
|
Approximately
1,182,000 tonnes (year 2)
|
|
Approximately
1,307,000 tonnes (year 3)
|
|
Approximately
2,049,000 tonnes (years 4 – 14)
|
|
|
Minesite costs per
tonne
|
Approximately C$185
per tonne milled (years 1-3)
|
|
Approximately C$150
per tonne milled (year 4 - 14)
|
|
|
Average total cash
costs on a by-product basis
|
Approximately $590
per ounce of gold produced (Life of Mine)
|
Average all-in
sustaining costs per ounce
|
Approximately $720
per ounce of gold produced (Life of Mine)
|
|
|
Mine
life
|
Approximately 14
years
|
Initial capital
costs to the first ounce produced
|
Approximately $900
million
|
Sustaining capital
costs
|
Approximately $48
million per year
|
Reclamation
costs
|
Approximately $49
million
|
|
|
|
Economic
Analysis:
|
|
US$1,200 per ounce
gold
|
|
US$/C$ exchange rate
of $1.25
|
|
Statutory income tax
rate: Approximately 26%
|
|
The Meliadine project
is subject to a net profits royalty payable in accordance with the
Northwest Territories and Nunavut Mining Regulations. The
royalties are calculated using a graduated rate to a maximum of
13%
|
|
|
|
*Includes
approximately 60,000 pre-production ounces
|
2016 Meliadine Work Program – Laying the Groundwork for Future
Production
In 2016, capital expenditures at Meliadine were approximately
$131 million. Work in 2016
included:
- Approximately 3,800 metres of underground development
(approximately 25% more than scheduled). This work included
initial access to ore horizons on the 200 and 400 metre levels
- Approximately 6,900 metres of delineation drilling (about 30%
of the stopes are fully delineated for 2019, and the grade and
tonnage of these stopes has been confirmed)
- Mobilization of materials to facilitate the start of
construction activities. Piling installation and camp
construction began in August, while dyke construction and
installation of a semi-mobile batch plant commenced in
November
At year-end 2016, approximately 55% of the engineering work was
completed. The target is to complete approximately 80% of the
engineering work by the end of August
2017.
2017 Meliadine Work Program and Additional Opportunities to
Create Value
The estimated capital budget for 2017 is approximately
$360 million. Key elements of
this program include:
- 5,600 metres of underground development (including the start of
a second ramp system from underground)
- Approximately 12,500 metres of conversion drilling and 14,000
metres of underground delineation drilling
- Completion of the camp complex in the second quarter of
2017
- Installation of underground ventilation and heating by the
fourth quarter of 2017
- Completion of the fuel farm in Rankin
Inlet and onsite in the fourth quarter of 2017
- Closing in of the process and power plant buildings by the end
of 2017
- Construction of second ramp portal in the second to fourth
quarters of 2017
The estimated capital budget for Meliadine in 2018 is
approximately $380 million.
The Company believes that there are numerous opportunities to
create additional value, both at the mine and on the large land
package. These include:
- Optimization of the current mine plan (advance Phase 2 pit
implementation)
- Potential to optimize labour costs once the mine is in
operation (via improved use of telecommunications)
- Minesite exploration upside through mineral resource conversion
and expansion of known ore zones (most zones are open below a
vertical depth of 450 metres)
- Potential for the discovery of new deposits along the 80
kilometer-long greenstone belt. Regional exploration programs
are expected to restart in 2017 and to recommence in earnest once
the mine starts production in 2019
LaRonde Zone 5 Project Approved For Mining
Following the completion of a positive internal technical study,
LaRonde Zone 5 (formerly referred to as Bousquet Zone 5) has been
approved for development (subject to permitting approval).
Permits are expected to be received by mid-2018 with mining
expected to commence shortly thereafter.
The project will be mined from underground access using a
longhole open stoping method with paste backfill. All of the
ore will be trucked to the surface before being trucked to the
nearby LaRonde mill complex. The ore will be treated at the
Lapa circuit at the LaRonde mill, which will become available after
the 2017 Lapa mine closure.
At December 31, 2016, LaRonde Zone
5 was estimated to contain mineral reserves of 423,000 ounces (6.3
million tonnes grading 2.10 g/t gold). Indicated mineral
resources were 712,000 ounces (8.9 million tonnes grading 2.49 g/t
gold) and inferred mineral resources were 488,000 ounces (2.9
million tonnes grading 5.28 g/t gold).
Underground development began in 2016, and production is
expected to commence in mid-2018, and continue through 2026
(approximately an 8 year mine life). The daily mining rate
will start at approximately 1,900 tpd and average approximately
2,000 tpd starting in 2021. Average annual production is
expected to be approximately 45,000 ounces per year at full
capacity.
LaRonde Zone 5 gold recovery is estimated at 92% and the average
minesite cost per tonne is estimated at approximately C$65. The life of mine average total cash
costs per ounce at LaRonde Zone 5 are expected to be approximately
$784. The life of mine average
AISC is expected to be approximately $850 per ounce.
The total capital cost for the project is approximately
$80 million, which is comprised of
four phases; $14 million for a bulk
sample (underway), $46 million for
initial capital, $14 million in
sustaining capital and $6 million in
closure costs.
LaRonde Zone 5 permitting activities fall under the certificate
of approval previously obtained for the production of a bulk
sample. The application for the LaRonde Zone 5 paste plant
certificate of approval is currently under review by the Quebec
Department of Sustainable Development, Environment and Fight
against Climate Change and approval is expected in the second
quarter of 2017. The application for the certificate of
approval for production at LaRonde Zone 5 is expected to
be submitted in the coming months.
The current mining plan is based on the extraction of the
current mineral reserves. The Company is evaluating
additional opportunities to create value. These include:
- LaRonde Zone 5 is open at depth. Material at depth could
potentially be mined with additional trucks
- Additional material may be able to be treated at the LaRonde
mill. This would reduce the current mine life at LaRonde Zone
5, but increase the value of the project
Capital Expenditures Expected to Decline Significantly After
Startup of Nunavut Operations in 2019; Sustaining Capital
Costs Stable through 2020
Based on the Company's budget assumptions, the Company expects
to fund this year's capital expenditures, which are estimated to
total approximately $859 million,
from operating cash flow and existing cash balances.
The estimated capital expenditures for 2017 include
approximately $284 million of
sustaining capital at the Company's operating mines and
$553 million on development projects,
as set out in the table below. Additionally, approximately
$22 million is estimated to be spent
on capitalized exploration and approximately $103 million on expensed exploration and project
evaluation.
Estimated 2017
Capital Expenditures
|
(In thousands of
US dollars)
|
|
|
|
|
|
Sustaining
Capital
|
Development
Capital
|
Capitalized
Exploration
|
|
|
|
|
LaRonde
mine
|
$
|
67,700
|
$
|
-
|
$
|
1,700
|
LaRonde zone
5
|
-
|
35,000
|
400
|
Canadian Malartic
mine
|
65,900
|
1,700
|
2,300
|
Meadowbank
mine
|
20,300
|
-
|
-
|
Amaruq
|
-
|
73,100
|
5,100
|
Kittila
mine
|
52,700
|
24,100
|
3,200
|
Goldex
mine
|
17,000
|
55,800
|
3,800
|
Lapa mine
|
-
|
-
|
-
|
Pinos
Altos
|
48,400
|
5,800
|
500
|
Creston Mascota
deposit Pinos Altos
|
5,500
|
-
|
-
|
La India
mine
|
6,900
|
-
|
800
|
Meliadine
project
|
-
|
355,800
|
3,900
|
Other
|
-
|
2,000
|
-
|
Total Capital
Expenditures
|
$
|
284,400
|
$
|
553,300
|
$
|
21,700
|
2017 Exploration Program and Budget – Main Focus on
Amaruq, New Zone at LaRonde 3, Barsele, the Sisar Zone at
Kittila, Satellite Targets at Pinos
Altos and La India, and El Barqueno
A large component of the 2017 exploration program will be
focused on the Amaruq satellite deposit at Meadowbank in
Nunavut, the LaRonde 3 deep
deposit, the Barsele project in Sweden, the Sisar Zone at the Kittila mine in
Finland, satellite targets at the
Pinos Altos and La India mines in
Mexico and the El Barqueno project
in Jalisco State, Mexico. The goal of these exploration
programs is to delineate mineral reserves and mineral resources
that can supplement the Company's existing production profile.
At the Amaruq satellite deposit at Meadowbank the first phase of
a planned 75,000-metre drill program (costing approximately
$21.9 million) commenced in early
February 2017. The goals of this program are to:
- Infill and expand the known mineral resource at the V Zone
- Test for westerly extensions of the Whale Tail deposit
- Further evaluate the underground potential of the Whale Tail
deposit
- Test other favourable targets to potentially outline additional
sources of open pit ore
At the LaRonde 3 deposit, approximately 28,000 metres of
drilling is expected for both conversion and exploration
drilling. Exploration expenditures in 2017 are expected to
total approximately $3.6 million.
At Barsele, approximately 18,200 metres of drilling (at a budget
of $8.8 million) will be carried out
with a focus to expand the mineral resources along strike and at
depth, and test the gap between the Central and Avan zones.
At Kittila, approximately $7.9
million will be spent on further deep drilling at Kittila
(which includes the Sisar Zone). The goal of this program is
to expand the mineral resources in the Northern part of the
property and demonstrate the economic potential of the Sisar Zone
as a new mining horizon at Kittila.
Approximately 45,000 metres of additional drilling is expected
to be completed by the end of 2017 at the El Barqueno project,
principally at the Socorro, Mortero, Carmen, Tierra Blanca, Cuauhtémoc, Peña de Oro, Peña
Blanca, San Diego, El Rayo, El Camino, and Cebollas prospects and
in the Tecolote-Tortuga areas within the south area of the El
Barqueno project. Exploration expenditures in 2017 are
expected to total approximately $16.8
million.
2017 Global Exploration program and budget including
expenditures and metres of drilling
|
|
|
Location/operation
|
Expensed
exploration
|
Capitalized
exploration
|
|
US$
millions
|
000
metres
|
US$
millions
|
000
metres
|
Nunavut
|
|
|
|
|
|
Amaruq
|
$21.9
|
75.0
|
$0.9
|
5.0
|
|
Amaruq
ramp
|
|
|
$4.3
|
|
|
Meliadine
|
$0.8
|
5.0
|
$3.9
|
25.9
|
|
Others
|
$4.5
|
15.0
|
-
|
-
|
Nunavut
subtotal
|
$27.3
|
95.0
|
$9.2
|
30.9
|
Quebec
|
|
|
|
|
|
LaRonde
|
$1.9
|
12.9
|
$1.7
|
15.2
|
LaRonde Zone
5
|
|
|
$0.4
|
5.2
|
|
Goldex
|
$0.2
|
3.0
|
$3.8
|
51.5
|
|
Others
|
$2.0
|
18.5
|
|
|
Quebec
subtotal
|
$4.2
|
34.4
|
$5.9
|
71.9
|
Canadian
Malartic*
|
|
|
|
|
|
Canadian Malartic
mine
|
$3.2
|
46.0
|
$2.3
|
53.7
|
|
Kirkland Lake
projects, (including Upper Beaver)
|
$2.9
|
25.8
|
-
|
-
|
|
Others
|
$1.2
|
12.0
|
-
|
-
|
Canadian
Malartic subtotal
|
$7.3
|
83.8
|
$2.3
|
53.7
|
Europe
|
|
|
|
|
|
Kittila
|
$7.7
|
30.6
|
$3.2
|
22.4
|
|
Barsele
|
$4.9
|
18.1
|
-
|
-
|
|
Others incl.
Kuotko
|
$1.2
|
8.0
|
|
|
Europe
subtotal
|
$13.8
|
56.7
|
$3.2
|
22.4
|
USA
|
|
|
|
|
USA
subtotal
|
$2.8
|
-
|
-
|
-
|
Mexico
|
|
|
|
|
|
Pinos Altos, Creston
Mascota
|
$6.1
|
34.0
|
$0.5
|
2.0
|
|
La India
|
$6.9
|
31.0
|
$0.8
|
5.0
|
|
El
Barqueno
|
$9.7
|
39.5
|
-
|
-
|
|
Soltoro
|
$1.4
|
6.0
|
-
|
-
|
Others
|
$2.7
|
8.5
|
-
|
-
|
Mexico
subtotal
|
$26.8
|
119.0
|
$1.3
|
7.0
|
G&A, land
fees, etc.
|
$21.1
|
|
|
|
Totals
|
$103.2
|
388.9
|
$21.7
|
185.9
|
Numbers in table have been rounded and therefore totals may
differ slightly from the addition of the numbers.
*For
the Canadian Malartic operations, in which Agnico Eagle holds a 50%
indirect interest, the expenses in this table represent 50% of the
total expenses, but the metres represent 100% of the metres of
drilling.
Gold Reserves Increase by 0.9M Ounces to Approximately 19.9M
Ounces, Successful Conversion at Key Operations and Development
Projects
At year-end 2016, the Company's proven and probable mineral
reserves (net of 2016 production) totaled 268 million tonnes of ore
grading 2.31 g/t gold, containing approximately 19.9 million ounces
of gold. This is an increase of approximately 0.9 million
ounces of gold (5%) compared with a year earlier. The
increase in the Company's mineral reserves is largely the result of
new internal economic studies at several operations, the successful
conversion of measured and indicated mineral resources to mineral
reserves at several operations and development projects, partially
offset by the 1,662,888 ounces of payable gold production in 2016
(1,874,000 ounces of in-situ gold mined). The Company's
overall mineral reserve gold grade is essentially unchanged at 2.31
g/t from 2.37 g/t, despite slightly lower cut-off grades at each
operation which was the result of reduced costs at several
operations and a small increase in the assumed gold price as well
as changes to foreign exchange rate assumptions used for the
estimates. Agnico Eagle has one of the highest mineral
reserve grades among its North American peers.
Highlights from the December 31,
2016 Mineral Reserve Statement include:
- At LaRonde Zone 5, mineral reserves of 423,000 ounces of gold
based on a internal study; at LaRonde, 200,000 ounces of gold in
mineral reserves declared below Level 311
- At Kittila, conversion drilling in Sisar and Rimpi zones added
338,000 ounces of gold in mineral reserves, before Kittila
production of 202,508 ounces of gold
- At Goldex, mineral reserves increased by 33% (218,000 ounces of
gold) in addition to production of 120,704 ounces, as a result of
conversion drilling in Deep 1 Zone
- At La India, mineral reserves increased by 18% (153,000 ounces
of gold) in addition to production of 115,162 ounces of gold, due
to successful conversion in the Main Zone extension
- Initial mineral reserves at Upper Beaver containing 698,000
ounces of gold converted from indicated mineral resources
(reflecting Agnico Eagle's 50% portion) based on an internal
technical study
The Company's year-end 2016 gold reserves are set out below:
Gold Mineral
Reserves
By
Mine
|
Proven &
Probable
|
Average Gold
Mineral
Reserve Grade
(g/t)
|
Mineral
Reserve
(000s gold
ounces)
|
|
2016
|
2015
|
Change
|
2016
|
2015
|
Change
|
Northern
Business
|
|
|
|
|
|
|
LaRonde
|
3,053
|
3,109
|
-56
|
5.40
|
5.31
|
0.09
|
LaRonde Zone
5
|
423
|
0
|
423
|
2.10
|
|
|
Canadian Malartic
(50%)
|
3,548
|
3,863
|
-314
|
1.08
|
1.08
|
0.00
|
Goldex
|
886
|
668
|
218
|
1.64
|
1.61
|
0.03
|
Akasaba
West
|
142
|
141
|
1
|
0.89
|
0.92
|
-0.03
|
Lapa
|
38
|
78
|
-40
|
4.58
|
5.49
|
-0.91
|
Meadowbank
|
711
|
943
|
-232
|
2.69
|
2.72
|
-0.03
|
Meliadine
|
3,417
|
3,417
|
0
|
7.32
|
7.32
|
-0.00
|
Upper Beaver
(50%)
|
698
|
0
|
698
|
5.43
|
0.00
|
0.00
|
Kittila
|
4,479
|
4,353
|
126
|
4.64
|
4.80
|
-0.16
|
Subtotal/Average
|
17,396
|
16,572
|
824
|
2.65
|
2.57
|
0.08
|
Southern
Business
|
|
|
|
|
|
|
Pinos
Altos
|
1,424
|
1,459
|
-35
|
2.55
|
2.88
|
-0.33
|
Creston
Mascota
|
102
|
176
|
-74
|
1.28
|
1.30
|
-0.02
|
La India
|
1,020
|
867
|
153
|
0.72
|
0.90
|
-0.18
|
Subtotal/Average
|
2,547
|
2,502
|
44
|
1.24
|
1.56
|
-0.32
|
Total Mineral
Reserves
|
19,943
|
19,075
|
868
|
2.31
|
2.37
|
-0.06
|
Amounts presented in the table and in this news release have
been rounded to the nearest thousand. See "Detailed Mineral
Reserve and Mineral Resource Data (as at December 31, 2016)" set out at the end of this
news release for more details, including the economic parameters
used in generating the December 2016
mineral reserve estimates.
In prior years, economic parameters used to estimate mineral
reserves and mineral resources for all properties were
calculated using historic three-year average metals prices and
foreign exchange rates in accordance with the U.S. Securities and
Exchange Commission (the "SEC") guidelines. These guidelines
require the use of prices that reflect current economic conditions
at the time of mineral reserve estimation, which the SEC has
interpreted to mean historic three-year average prices. Given
the current commodity price environment, Agnico Eagle has decided
to continue to use more conservative gold and silver prices.
Assumptions used for the December 2016 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
|
Long-life operations
and projects – LaRonde, Goldex, Akasaba West, Kittila, Pinos Altos,
La India
|
$1,150
|
$16.50
|
$2.15
|
$0.95
|
C$1.20
|
MP16.00
|
US$1.15
|
Short-life operations
– Lapa, Meadowbank, Santos Nino pit and Creston Mascota satellite
operation at Pinos Altos
|
C$1.30
|
MP16.00
|
Not
applicable
|
Meliadine
project
|
$1,100
|
Not
applicable
|
Not
applicable
|
Not
applicable
|
C$1.16
|
Not
applicable
|
Not
applicable
|
Canadian Malartic
mine* and Upper Beaver project**
|
$1,200
|
Not
applicable
|
2.75
|
Not
applicable
|
C$1.25
|
Not
applicable
|
Not
applicable
|
*The Canadian Malartic mine uses a cut-off grade between 0.33
g/t and 0.37 g/t gold (depending on the deposit)
**The
Upper Beaver project has a C$125/tonne net smelter return (NSR)
The above metal price assumptions are below the three-year
historic gold and silver price averages (from January 1, 2014 to December 31, 2016) of approximately $1,225 per ounce and $17.53 per ounce, respectively. The mineral
resources at all properties are estimated using 75% of the cut-off
grades used to estimate the mineral reserves.
The increase in the Company's mineral reserves is largely the
result of new internal economic studies at several operations, the
successful conversion of measured and indicated mineral resources
to mineral reserves at several operations and development
projects. The Upper Beaver project in the Kirkland Lake area of Ontario (all numbers shown for Upper Beaver
reflect Agnico Eagle's 50% ownership in the project.) declared
initial probable mineral reserves of 698,000 ounces (4.0 million
tonnes grading 5.43 g/t gold and 0.25% copper). At the
LaRonde Zone 5, mineral reserves of 423,000 ounces (6.3 million
tonnes grading 2.10 g/t gold) have been converted from indicated
mineral resources. A small decline of 56,000 ounces of gold
in mineral reserves was experienced at the LaRonde mine, mainly due
to gold production of 305,788 ounces (320,000 ounces of in-situ
gold mined), largely offset by the results of conversion drilling
on the mineral resources below Level 311 where 200,000 ounces of
gold was added in mineral reserves in three levels (a total of 90
metres) below this depth (3,110 metres depth). These are the
first mineral reserves declared below Level 311 at LaRonde.
Conversion drilling was also successful in increasing mineral
reserves, notably at three operating mines where conversion more
than offset the gold that was mined during 2016. At the
Goldex mine, 336,000 ounces of gold were converted to mineral
reserves in the Deep 1 Zone, while gold production from the M and E
satellite zones totalled 120,704 ounces of gold (131,000 ounces
in-situ gold mined). The result was a 33% increase in mineral
reserves at the Goldex mine. Conversion drilling mainly in
the Sisar Zone, as well as the Rimpi Zone, at the Kittila mine
added 338,000 ounces of gold in mineral reserves, while production
totalled 202,508 ounces of gold (236,000 ounces in-situ gold
mined). These are the initial mineral reserves in the Sisar
Zone, where initial inferred mineral resources were declared one
year ago. At the La India mine, conversion drilling in the
Main Zone extension resulted in an additional 193,400 ounces of
gold in mineral reserves while gold production amounted to 115,162
ounces (152,000 ounces in-situ gold mined). The mineral
reserves increased by 18% (153,000 ounces gold) as a result.
A reduction in the cut-off grade because of changing estimation
parameters was the third factor that resulted in increased mineral
reserves, which had a particularly positive impact on the minerals
reserves at the Kittila and La India mines.
The Canadian Malartic mine (all numbers shown for Canadian
Malartic reflect Agnico Eagle's 50% ownership in the mine)
experienced a decline in mineral reserves that essentially
corresponds to the gold mined in 2016. The mineral reserves
decreased by 314,000 ounces of gold, explained by 2016 gold
production of 292,514 ounces (328,000 ounces of in-situ gold
mined). The decrease in the mineral reserves at the
Meadowbank mine by gold production of 312,214 ounces (340,000
ounces in-situ gold mined) in 2016 was partially offset by the
addition of 67,000 ounces of gold in mineral reserves from a new
study into an extension of the Portage and Vault pits.
Similarly, at the Lapa mine, gold production of 73,930 ounces
(88,000 ounces in-situ gold mined) was partially offset by a new
economic study that added mineral reserves of 38,000 ounces of
gold, which is expected to extend the mine life into the first
quarter of 2017.
The gold reserves at the Pinos
Altos mine and its satellite Creston Mascota operation
declined due to gold production of 192,772 ounces and 47,296
ounces, respectively (202,000 ounces and 76,000 ounces,
respectively, of in-situ gold mined). The Pinos Altos mine depletion was largely offset
by an addition of mineral reserves due to conversion drilling in
the Cerro Colorado and
Santo Nino underground mineral
resources as well as the reduced cut-off grade, balanced by a
reduction in mineral reserves due to new modelling parameters that
affected the Santo Nino pit
design.
It is the Company's goal to maintain its global mineral reserves
at approximately 10 to 15 times its annual gold production rate.
The current mineral reserves are within this range when
compared to the Company's projected annual 2017 production
guidance.
In addition to gold, Agnico Eagle's proven and probable mineral
reserves include by-product metals of approximately 54 million
ounces of silver at the Pinos
Altos, LaRonde, La India and Creston Mascota mines (81.5
million tonnes grading an average of 20.5 g/t silver), plus 153,000
tonnes of zinc and 42,000 tonnes of copper at the LaRonde mine
(17.6 million tonnes grading 0.87% zinc and 0.24% copper), 25,000
tonnes of copper at the Akasaba West project (4.9 million tonnes
grading 0.50% copper) and 10,000 tonnes of copper at the Upper
Beaver project (4.0 million tonnes grading 0.25% copper).
At a gold price of $1,250 per
ounce (leaving all other assumptions unchanged), there would be an
approximate 5.3% increase in the gold contained in proven and
probable mineral reserves. Conversely, using a gold price of
$1,050 (leaving all other assumptions
unchanged), there would be an estimated 5.0% decrease in the gold
contained in proven and probable mineral reserves. For the
Meliadine project, the sensitivity was calculated using a
$100 variation in the assumed price
of $1,100 per ounce gold; for the
Canadian Malartic mine only, the sensitivity was calculated using a
10% variation in the assumed price of $1,200 per ounce gold.
Measured and Indicated Mineral Resources Increase by 1.3M
Ounces Gold and Inferred Mineral Resources Decrease by 0.7M Ounces
Gold Due to Conversion
Highlights from the December 31,
2016 Mineral Resource Statement include:
- At the Amaruq satellite deposit at Meadowbank, initial
indicated mineral resources of 2.1 million ounces of gold at open
pit depths, resulting in a decrease in inferred mineral resources
to 2.1 million ounces of gold mainly at depth
- At the Odyssey property, initial inferred mineral resources of
714,000 ounces of gold (reflecting Agnico Eagle's 50%
interest)
- At the Barsele project in Sweden, initial inferred mineral resources of
661,000 ounces of gold (reflecting Agnico Eagle's 55%
interest)
- At the El Barqueno project in Mexico, initial indicated mineral resources of
301,000 ounces of gold and 1.2 million ounces of silver, while
inferred mineral resources decreased to 362,000 ounces of gold and
1.0 million ounces of silver; which includes initial inferred
mineral resources at Olmeca mineral deposit
The Company's measured and indicated mineral resources now total
approximately 333 million tonnes grading 1.53 g/t gold, or 16.4
million ounces of gold. This represents approximately a 9%
increase in ounces of gold (1.3 million ounces), an 8% increase in
tonnage (24 million tonnes) and essentially no change in grade
compared with the December 2015
measured and indicated mineral resource (see the February 10, 2016 news release for
comparison).
Most of the additions in the measured and indicated mineral
resources were reported from the Company's development and advanced
exploration projects. At the Amaruq satellite deposit at
Meadowbank, initial indicated mineral resources of 2.1 million
ounces (16.9 million tonnes grading 3.88 g/t gold) were reported at
open pit depths, almost all in the Whale Tail deposit.
Conversion drilling led to an initial indicated mineral resource
estimate of 301,000 ounces of gold and 1.2 million ounces of silver
(8.5 million tonnes grading 1.11 g/t gold and 4.35 g/t silver) at
the El Barqueno project. Different options are being studied
for optimizing the potential processing costs and gold
recovery. Studies at the Kirkland
Lake properties allowed for the validation of estimates by
previous owners: the Anoki/McBean project (all numbers shown for
Anoki/McBean reflect Agnico Eagle's 50% ownership in the project)
has a new indicated mineral resource estimate of 160,000 ounces
(0.9 million tonnes grading 5.33 g/t gold).
Successful conversion to mineral reserves resulted in decreases
in measured and indicated mineral resources, particularly at
LaRonde Zone 5, the LaRonde mine below Level 311 and the Goldex
mine's Deep 1 Zone.
At the Meadowbank mine, the measured and indicated mineral
resources decreased by 475,000 ounces due to a combination of
successful conversion of 67,000 ounces of gold to mineral reserves
in the Portage and Vault pit extensions, as well as the removal of
former underground indicated mineral resources in the Goose mineral
deposit.
The Company's inferred mineral resources now total 221 million
tonnes grading 2.23 g/t, or approximately 15.9 million ounces of
gold. This represents an approximate 4% decrease in ounces of
gold (0.7 million ounces), a 4% decrease in tonnage (8.5 million
tonnes) and essentially no change in grade compared with the
December 2015 inferred mineral
resources (see the Company's February 10,
2016 news release for comparison).
Recent work by the Company on newly acquired properties to
validate mineral resource estimates by previous owners had a large
positive impact on the inferred mineral resources. The
Barsele project (all numbers shown for Barsele reflect Agnico
Eagle's 55% interest in the project) reported initial inferred
mineral resources of 661,000 ounces (11.9 million tonnes grading
1.72 g/t gold), mostly at depth. The North and South Odyssey
zones declared initial inferred mineral resources of 714,000 ounces
(10.3 million tonnes grading 2.15 g/t gold) at depth, the result of
exploration drilling in 2016. Studies at the Anoki/McBean
project near Kirkland Lake have
resulted in new inferred mineral resources of 191,000 ounces (1.3
million tonnes grading 4.70 g/t gold). These numbers reflect
Agnico Eagle's 50% ownership of the Odyssey property and the
Kirkland Lake properties.
While successful exploration drilling increased the inferred
mineral reserves at some properties, that was more than offset,
overall, by the successful conversion of those mineral resources to
indicated mineral resources. An example is the Amaruq
satellite deposit at Meadowbank, where the inferred mineral
resources decreased by approximately 1.2 million ounces to 2.1
million ounces (11.7 million tonnes grading 5.63 g/t gold), mainly
at depth in the Whale Tail deposit (38%) and IVR Zone (26%), and
the rest at open pit depths in the Whale Tail deposit (13%) and the
IVR Zone (23%). A decrease of 209,000 ounces of gold at the
El Barqueno project was due to the successful conversion to
indicated mineral resources offset by exploration drilling success,
leaving inferred mineral resources of 362,000 ounces of gold and
1.0 million ounces of silver (7.2 million tonnes grading 1.56 g/t
gold and 4.50 g/t silver); this includes initial inferred mineral
resources of 135,000 ounces of gold at the Olmeca mineral
deposit. Successful exploration drilling at the LaRonde mine
below Level 311 added inferred mineral resources of 463,000 ounces
of gold to the inferred mineral resources below Level 311; the
mine's inferred mineral resources now total 1.7 million ounces (7.7
million tonnes grading 6.68 g/t gold, 14.48 g/t silver, 0.25%
copper and 0.60% zinc).
New modelling parameters have resulted in a 327,000 ounce of
gold decrease in inferred mineral resources at the Meadowbank mine
to 115,000 ounces (1.1 million tonnes grading 3.13 g/t gold) due to
the removal of inferred mineral resources in the underground
portion of the Goose deposit.
The distribution of mineral resources by property is set out in
the following table. For full details including tonnage and
grade, see the "Detailed Mineral Reserve and Mineral Resource Data
(as at December 31, 2016)" below.
December 31, 2016 Mineral
Resources
|
Measured &
Indicated
|
|
Inferred
|
|
Mineral
Resources
|
|
Mineral
Resources
|
|
(000 oz
gold)
|
|
(000 oz
gold)
|
Northern
Business
|
|
|
|
LaRonde
|
598
|
|
1,655
|
LaRonde Zone
5
|
712
|
|
488
|
Ellison
|
68
|
|
257
|
Canadian Malartic
(50%)
|
644
|
|
216
|
Odyssey
(50%)
|
-
|
|
714
|
Goldex
|
1,777
|
|
1,129
|
Akasaba
West
|
53
|
|
-
|
Lapa
|
105
|
|
158
|
Zulapa
|
-
|
|
39
|
Meadowbank
|
246
|
|
115
|
Amaruq
|
2,109
|
|
2,125
|
Meliadine
|
3,306
|
|
3,552
|
Hammond Reef
(50%)
|
2,251
|
|
6
|
Upper Beaver
(Kirkland Lake) (50%)
|
202
|
|
708
|
Amalgamated Kirkland
(Kirkland Lake) (50%)
|
133
|
|
203
|
Anoki/McBean
(Kirkland Lake) (50%)
|
160
|
|
191
|
Kittila
|
1,946
|
|
1,442
|
Barsele
(55%)
|
-
|
|
661
|
Other (Swanson,
Kylmäkangas, Kuotko)
|
31
|
|
287
|
Subtotal
|
14.340
|
|
13,945
|
|
|
|
|
Southern
Business
|
|
|
|
Pinos
Altos
|
730
|
|
380
|
Creston
Mascota
|
139
|
|
31
|
La India
|
869
|
|
1,132
|
El
Barqueno
|
301
|
|
362
|
Subtotal
|
2,038
|
|
1,905
|
Total Mineral
Resources
|
16,378
|
|
15,850
|
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec's largest gold producer with a 100%
interest in three mines (LaRonde, Goldex and Lapa) and a 50%
interest in the Canadian Malartic mine. These mines are
located within 50 kilometres of each other, which provide operating
synergies and allows for the sharing of technical expertise.
LaRonde Mine – Higher Grades From Lower Mine Drive Record
Quarterly Production; Drilling Indicates Potential Higher Gold
Grades at LaRonde 3
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in
1988.
LaRonde Mine -
Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
572
|
|
563
|
Tonnes of ore milled
per day
|
6,220
|
|
6,128
|
Gold grade
(g/t)
|
4.75
|
|
4.22
|
Gold production
(ounces)
|
83,508
|
|
73,161
|
Production costs per
tonne (C$)
|
$
|
100
|
|
$
|
88
|
Minesite costs per
tonne (C$)
|
$
|
99
|
|
$
|
94
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
528
|
|
$
|
438
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
405
|
|
$
|
510
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to higher
underground and mill maintenance costs and the timing of unsold
concentrate inventory. Production costs per ounce in the
fourth quarter of 2016 increased when compared to the prior-year
period due to the reasons described above.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to higher underground
and mill maintenance costs. Total cash costs per ounce in the
fourth quarter of 2016 decreased when compared to the prior-year
period due to higher gold production from the lower mine and higher
by-product metal revenues.
LaRonde Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
2,240
|
|
2,241
|
Tonnes of ore milled
per day
|
6,121
|
|
6,141
|
Gold grade
(g/t)
|
4.44
|
|
3.91
|
Gold production
(ounces)
|
305,788
|
|
267,921
|
Production costs per
tonne (C$)
|
$
|
106
|
|
$
|
98
|
Minesite costs per
tonne (C$)
|
$
|
106
|
|
$
|
99
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
587
|
|
$
|
643
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
501
|
|
$
|
590
|
Production costs per tonne for the full year 2016 increased when
compared to the prior-year period due to increased underground and
mill maintenance costs and timing of unsold concentrate inventory.
Production costs per ounce for the full year 2016 decreased
due to higher gold production from the lower mine.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to higher underground and
mill maintenance costs. Total cash costs per ounce for the
full year 2016 decreased when compared to the prior-year period due
to higher gold production from the higher grade lower mine and
higher by-product metal revenues. In 2016, the LaRonde mine
produced approximately 4,687 tonnes of zinc (34% more than in
2015), 1.0 million ounces of silver (8% more than in 2015) and
4,416 tonnes of copper (11% less than in 2015).
At the LaRonde 3 project, studies are continuing to assess the
potential to extend the mineral reserve base and carry out mining
activities between the 311 level (a depth of 3.1 kilometres) and
the 371 level (a depth of 3.7 kilometres).
In 2016, infill drilling successfully upgraded portions of the
LaRonde 3 mineral resource base. In the eastern portion of
the deposit, mineral reserves of approximately 200,000 ounces (1.2
million tonnes grading 5.15 g/t gold) have been delineated to the
320 level. Indicated mineral resources have been outlined to
the 340 level, while inferred mineral resources extend to the 370
level. The western portion of the deposit is entirely
inferred mineral resources that extend to the 370 level.
An infill drill program is continuing from the 311 to the 371
levels, with a focus on the western portion of the deposit where
recent drilling has encountered higher-grade mineralization between
the 311 and 340 levels. Highlights include: 28.1 g/t gold
over 9.3 metres in hole LR-290-056A and 13.8 g/t gold over 8.1
metres in hole LR-290-061.
These new high-grade intersections are now interpreted as being
a distinct lens of massive sulphide mineralization from the main
LaRonde 3 horizon. In 2016, the first mineral reserves were
declared in the eastern portion of LaRonde 3 and additional
inferred mineral resources were declared in the western portion of
LaRonde 3. Further drilling is being carried out to assess
this new potential and the vertical extent of the
mineralization. Studies are ongoing to evaluate the potential
to mine below the currently planned 3.1 kilometres at LaRonde
Selected recent drill results and the collar coordinates are set
out in the table below. Pierce points for all of these holes
are shown on the LaRonde Composite Longitudinal Section. All
intercepts reported for the LaRonde mine show capped grades over
estimated true widths.
Recent exploration and infill drill results from LaRonde 3
(below Level 311)
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of midpoint
below surface (metres)
|
Estimated true width
(metres)
|
Gold grade (g/t)
(uncapped)
|
Gold grade (g/t)
(capped)
|
Silver grade (g/t)
(uncapped)
|
Copper grade
(%)
|
Zinc grade
(%)
|
LR-290-036A
|
451.3
|
459.8
|
3,205
|
6.8
|
12.4
|
12.4
|
21.3
|
0.48
|
0.01
|
LR-290-053
|
427.2
|
442.2
|
3,167
|
9.4
|
15.7
|
11.6
|
51.6
|
0.78
|
1.39
|
LR-290-054
|
542.1
|
554.4
|
3,304
|
7.0
|
6.0
|
6.0
|
15.6
|
0.21
|
0.02
|
LR-290-054A
|
492.0
|
506.1
|
3,248
|
8.8
|
22.8
|
20.4
|
29.1
|
0.29
|
0.07
|
LR-290-056
|
639.4
|
660.9
|
3,409
|
9.5
|
18.0
|
15.0
|
16.7
|
0.20
|
0.02
|
LR-290-056A
|
560.0
|
576.5
|
3,320
|
9.3
|
28.7
|
28.1
|
25.4
|
0.46
|
0.08
|
LR-290-058A
|
459.2
|
463.2
|
3,207
|
2.8
|
2.4
|
2.4
|
3.7
|
0.25
|
0.00
|
LR-290-058B
|
578.4
|
590.4
|
3,327
|
5.4
|
9.7
|
8.7
|
8.4
|
0.29
|
0.00
|
LR-290-060
|
510.7
|
527.0
|
3,255
|
8.9
|
7.8
|
7.8
|
29.9
|
0.29
|
0.48
|
LR-290-061
|
484.2
|
498.8
|
3,206
|
8.1
|
13.8
|
13.8
|
79.4
|
1.31
|
2.89
|
LR-293-016
|
333.0
|
347.7
|
3,104
|
12.1
|
10.3
|
10.3
|
18.9
|
0.33
|
0.05
|
* Holes at LaRonde 3 use a capping factor of 80 g/t gold and
1,000 g/t silver. None of the silver values in this table
were capped
LaRonde 3 exploration drill collar coordinates
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM North
|
UTM East
|
Elevation (metres
above sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
LR-290-036A
|
689537
|
5346891
|
-2,536
|
185
|
-61
|
506
|
LR-290-053
|
689537
|
5346891
|
-2,536
|
203
|
-54
|
490
|
LR-290-054
|
689537
|
5346891
|
-2,536
|
196
|
-61
|
595
|
LR-290-054A
|
689537
|
5346891
|
-2,536
|
196
|
-61
|
532
|
LR-290-056
|
689508
|
5346892
|
-2,536
|
192
|
-64
|
711
|
LR-290-056A
|
689508
|
5346892
|
-2,536
|
192
|
-64
|
645
|
LR-290-058A
|
689670
|
5346890
|
-2,532
|
195
|
-63
|
501
|
LR-290-058B
|
689670
|
5346890
|
-2,532
|
195
|
-63
|
644
|
LR-290-060
|
689508
|
5346892
|
-2,536
|
206
|
-56
|
578
|
LR-290-061
|
689508
|
5346892
|
-2,536
|
212
|
-50
|
521
|
LR-293-016
|
689576
|
5346881
|
-2,556
|
186
|
-54
|
370
|
* Coordinate System UTM Nad 83 Zone 17
[LaRonde Mine Composite Longitudinal Section]
Canadian Malartic Mine – Record Annual Production and Mill
Throughput
In June 2014, Agnico Eagle and
Yamana Gold Inc. ("Yamana") acquired all of the issued and
outstanding common shares of Osisko Mining Corporation and created
the Canadian Malartic General Partnership (the
"Partnership"). The Partnership owns and operates the
Canadian Malartic mine in northwestern Quebec through a joint management
committee. Each of Agnico Eagle and Yamana has an indirect
50% ownership interest in the Partnership. All volume numbers
in this section reflect the Company's 50% interest in the Canadian
Malartic mine except as noted.
Canadian Malartic
Mine - Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)(100%)
|
4,865
|
|
4,856
|
Tonnes of ore milled
per day (100%)
|
52,881
|
|
52,780
|
Gold grade
(g/t)
|
1.01
|
|
1.06
|
Gold production
(ounces)(50%)
|
69,971
|
|
72,872
|
Production costs per
tonne (C$)
|
$
|
27
|
|
$
|
25
|
Minesite costs per
tonne (C$)
|
$
|
25
|
|
$
|
25
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
671
|
|
$
|
633
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
634
|
|
$
|
606
|
Production costs per tonne in the fourth quarter of
2016 increased when compared to the prior-year period due to
the use of additional contractors to maximize stripping activities
in the north part of the pit to access higher grades.
Production costs per ounce in the fourth quarter of 2016 increased
when compared to the prior-year period due to lower production and
the reasons described above.
Minesite costs per tonne in the fourth quarter of 2016 were the
same when compared to the prior-year period. Total cash costs
per ounce in the fourth quarter of 2016 increased when compared to
the prior-year period due to lower production.
Canadian Malartic
Mine - Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)(100%)
|
19,641
|
|
19,090
|
Tonnes of ore milled
per day (100%)
|
53,665
|
|
52,300
|
Gold grade
(g/t)
|
1.04
|
|
1.05
|
Gold production
(ounces)(50%)
|
292,514
|
|
285,809
|
Production costs per
tonne (C$)
|
$
|
25
|
|
$
|
23
|
Minesite costs per
tonne (C$)
|
$
|
25
|
|
$
|
23
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
628
|
|
$
|
600
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
606
|
|
$
|
596
|
Production costs per tonne for the full year 2016 increased
when compared to the prior-year period due to unplanned maintenance
on the leach tank, ball mill and crusher components in the process
plant and additional stripping costs. In addition, extra
contractors were employed to maximize stripping activities in the
north part of the pit to access higher
grades. Production costs per ounce for the full year
2016 increased when compared to the prior-year period due to
the reasons described above.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to higher throughput levels
and unplanned maintenance on the leach tank, ball mill and crusher
components in the process plant. In addition, extra
contractors were employed to maximize stripping activities in the
north part of the pit to access higher grades and increased royalty
costs as a result of the higher production levels. Total cash
costs per ounce for the full year 2016 increased when compared to
the prior-year period due to the reasons described above.
At the Canadian Malartic mine, exploration programs are ongoing
to evaluate a number of near pit/underground targets. In
addition, the Partnership continues to explore the Odyssey
property, which is located to the east of the Canadian Malartic
open pit. Both of these opportunities have the potential to
provide new sources of ore for the Canadian Malartic mill.
Following the Quebec Bureau des Audiences Publiques sur
l'Environnement ("BAPE") public hearings in June and July 2016, permitting of the Canadian Malartic
extension project and Highway 117 deviation reached an important
milestone with the issue of the BAPE report on October 5, 2016. The BAPE report concluded
that the project is acceptable and provides several recommendations
intended to enhance social acceptability.
Since the spring of 2015, the Partnership has been working
collaboratively with the community of Malartic and its citizens to
develop a "Good Neighbour Guide" that addresses impacts caused by
the activities at the Canadian Malartic mine. Implementation
of the recommendations in the Good Neighbour Guide began on
September 1, 2016. As of
November 30, 2016, which was the end
of the claim period for citizens of Malartic to request
compensation for the period from June
2013 through June 2016,
approximately 94% of Malartic citizens had registered for the
program.
The next step in the permitting process is for the Minister of
Sustainable Development, Environment and the Fight against Climate
Change to review the report and present his decision to
Cabinet for approval. No date for the approval has been set,
but the Company anticipates that this may occur in the first half
of 2017. Production activities at Barnat are currently
forecast to begin in late 2018, depending on the timing of the
start of construction of the road deviation.
Initial Mineral Resource declared at Odyssey
The Odyssey property lies on the east side of the Canadian
Malartic property, approximately 1.5 kilometres east of the current
limit of the Canadian Malartic open pit.
The Odyssey property is composed of multiple mineralized bodies
spatially associated with a porphyritic intrusion close to the
contact of the Pontiac Group sediments and the Piché Group of
volcanic rocks. They are grouped into two elongated zones,
the Odyssey North and Odyssey South zones, that strike
east-southeast and dip steeply south. Odyssey North has been
traced from a depth of 600 to 1,300 metres below surface along a
strike length of approximately 1.5 kilometres. Odyssey South
currently has a strike length of 0.5 kilometres and has been
located between approximately 200 and 550 metres below surface.
During 2016, a total of 155 holes (119,396 metres) were
completed at the Odyssey property. The 2016 results have been
incorporated with previous work to estimate an initial mineral
resource for the Odyssey property (inclusive of the North and South
zones). Inferred mineral resources (on a 100% basis) are
estimated at 1.43 million ounces (20.7 million tonnes grading 2.15
g/t gold). Further details on mineral resources at the
Odyssey property are presented in the mineral reserve and mineral
resource section of this news release.
The inferred mineral resource does not include drill results
from internal zones that extend from the Odyssey North Zone.
Drilling carried out to date suggests that these internal zones
could increase mineral resources and enhance the economics of the
project by adding higher grade ounces that would require minimal
additional infrastructure to access.
Recent drilling on the internal zones returned several
significant intersections including: 3.10 g/t gold over 91.5 metres
in hole ODY11-5055, 4.24 g/t gold over 12.5 metres in hole
ODY16-5099 and 3.23 g/t gold over 10.5 metres in hole
ODY16-5105. Selected recent drill results and the collar
coordinates are set out in the table below. All intercepts
reported for the Odyssey property show capped grades over core
lengths. In the first half of 2017, drilling activities at
the Odyssey property will focus on further defining these internal
zones and expanding the mineral resources in Odyssey North and
South.
Recent exploration drill results from the Internal Lode at
Odyssey
Drill hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of midpoint
below surface (metres)
|
Core length
(metres)**
|
Gold grade (g/t)
(uncapped)
|
Gold grade (g/t)
(capped)*
|
ODY11-2404B
|
Internal
Lode
|
930.0
|
937.3
|
831
|
7.3
|
23.59
|
7.04
|
ODY14-2492
|
Internal
Lode
|
827.6
|
929.5
|
734
|
101.9
|
3.78
|
3.47
|
including
|
|
850.3
|
863.2
|
|
12.9
|
12.53
|
10.06
|
ODY16-5033
|
Internal
Lode
|
1,038.5
|
1,052.0
|
903
|
13.5
|
2.24
|
2.24
|
ODY16-5055
|
Internal
Lode
|
1,035.5
|
1,127.0
|
917
|
91.5
|
4.03
|
3.10
|
including
|
|
1,063.7
|
1,078.0
|
|
14.3
|
14.90
|
9.36
|
ODY16-5064
|
Internal
Lode
|
978.5
|
1,019.5
|
814
|
41.0
|
1.89
|
1.89
|
and
|
Internal
Lode
|
1,107.1
|
1,120.2
|
586
|
13.1
|
5.00
|
5.00
|
ODY16-5075
|
Internal
Lode
|
1,074.5
|
1,102.5
|
904
|
28.0
|
1.92
|
1.92
|
including
|
|
1,080.5
|
1,085.0
|
|
4.5
|
6.11
|
6.11
|
ODY16-5078
|
ND
|
1,000.0
|
1,027.5
|
866
|
27.5
|
1.97
|
1.97
|
ODY16-5087
|
ND
|
759.0
|
767.2
|
697
|
8.2
|
3.17
|
3.17
|
and
|
Internal
Lode
|
940.5
|
948.0
|
552
|
7.5
|
2.84
|
2.84
|
and
|
Internal
Lode
|
971.5
|
985.5
|
582
|
14.0
|
2.33
|
2.33
|
and
|
Internal
Lode
|
1,011.0
|
1,049.0
|
628
|
38.0
|
1.59
|
1.59
|
including
|
|
1,029.6
|
1,034.0
|
|
4.4
|
6.92
|
6.92
|
ODY16-5087A
|
Internal
Lode
|
952.0
|
962.5
|
867
|
10.5
|
2.26
|
2.26
|
and
|
Internal
Lode
|
1,038.5
|
1,046.0
|
634
|
7.5
|
1.81
|
1.81
|
ODY16-5099
|
Internal
Lode
|
723.5
|
731.5
|
682
|
8.0
|
7.24
|
5.99
|
including
|
|
727.7
|
731.5
|
|
3.8
|
13.11
|
10.48
|
and
|
Internal
Lode
|
780.5
|
793.0
|
431
|
12.5
|
4.24
|
4.24
|
ODY16-5105
|
Internal
Lode
|
647.0
|
653.5
|
562
|
6.5
|
11.23
|
8.63
|
and
|
Internal
Lode
|
895.0
|
930.5
|
469
|
35.5
|
2.76
|
2.00
|
and
|
Internal
Lode
|
1,107.5
|
1,118.0
|
630
|
10.5
|
3.23
|
3.23
|
* Holes at the Odyssey prospect use a capping factor of 20
g/t gold.
** True thickness not determined; these values
are core length.
Odyssey prospect exploration drill collar coordinates of
selected holes
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM North
|
UTM East
|
Elevation (metres
above sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
ODY11-2404B
|
5333934
|
717976
|
311
|
022
|
-63
|
1,473
|
ODY14-2492
|
5333880
|
718295
|
312
|
014
|
-61
|
1,323
|
ODY16-5033
|
5333962
|
718400
|
311
|
012
|
-65
|
1,256
|
ODY16-5055
|
5333874
|
718294
|
314
|
012
|
-63
|
1,326
|
ODY16-5064
|
5333767
|
718276
|
315
|
002
|
-61
|
1,344
|
ODY16-5075
|
5333766
|
718277
|
315
|
004
|
-62
|
1,378
|
ODY16-5078
|
5333984
|
718168
|
312
|
012
|
-66
|
1,140
|
ODY16-5087
|
5334297
|
718706
|
308
|
283
|
-67
|
1,185
|
ODY16-5087A
|
5334297
|
718706
|
308
|
283
|
-67
|
1,305
|
ODY16-5099
|
5334643
|
718500
|
307
|
202
|
-70
|
1,014
|
ODY16-5105
|
5333955
|
718501
|
311
|
003
|
-62
|
1,194
|
* Coordinate System UTM Nad 83 zone 17
[Odyssey Prospect – Local Geology Map]
Canadian Malartic Corporation
In addition to the Partnership, each of Agnico Eagle and Yamana
have an indirect 50% interest in Canadian Malartic Corporation ("CMC"), which holds a
portfolio of exploration properties that includes properties in the
Kirkland Lake area of Ontario and the Pandora property in the
Abitibi region of Quebec.
At the Pandora property, 23 diamond drill holes (15,767 metres)
were completed in 2016, with a focus on the western portion of the
property. A supplemental program consisting of three holes
(3,000 metres) is underway. Additional exploration work at
the Pandora property will depend on the results from the 2017
supplemental program.
At Kirkland Lake, an internal
technical study was completed in 2016, which allowed a total of 1.4
million ounces of gold and 10,000 tonnes of copper to be classified
as mineral reserves (8.0 million tonnes grading 5.43 g/t gold and
0.25% copper) (on a 100% basis). Mineral resources were also
expanded at the Anoki and McBean deposits.
The 2017 exploration program will consist of 25,750 metres of
drilling at an estimated cost of C$7.3
million (on a 100% basis). Drilling activities will be
focused on regional targets around the Upper Beaver project and
elsewhere in the camp and depth extensions of the Amalgamated
Kirkland mineral resource.
Lapa – Strong 2016 Performance, Additional Production
Forecast in 2017
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in
May 2009.
Lapa Mine -
Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
130
|
|
136
|
Tonnes of ore milled
per day
|
1,410
|
|
1,478
|
Gold grade
(g/t)
|
3.90
|
|
5.45
|
Gold production
(ounces)
|
14,065
|
|
19,929
|
Production costs per
tonne (C$)
|
$
|
133
|
|
$
|
123
|
Minesite costs per
tonne (C$)
|
$
|
135
|
|
$
|
111
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
941
|
|
$
|
635
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
935
|
|
$
|
620
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to higher
costs associated with development work in the new zones that had
been previously excluded from the mine plan and the timing of
unsold inventory. Production costs per ounce in the fourth
quarter of 2016 increased when compared to the prior-year period
due to lower production and the reasons described above.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to higher costs
associated with development work in the new zones that had been
previously excluded from the mine plan. Total cash costs per
ounce in the fourth quarter of 2016 increased when compared to the
prior-year period due to lower production and the reasons described
above.
Lapa Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
593
|
|
560
|
Tonnes of ore milled
per day
|
1,619
|
|
1,534
|
Gold grade
(g/t)
|
4.64
|
|
5.83
|
Gold production
(ounces)
|
73,930
|
|
90,967
|
Production costs per
tonne (C$)
|
$
|
118
|
|
$
|
119
|
Minesite costs per
tonne (C$)
|
$
|
121
|
|
$
|
117
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
717
|
|
$
|
578
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
732
|
|
$
|
590
|
Production costs per tonne for the full year 2016 decreased when
compared to the prior-year period due to higher throughput levels
and the timing of unsold inventory. Production costs per
ounce for the full year 2016 increased due to lower production and
higher costs associated with development work in the new zones that
had been previously excluded from the mine plan and the timing of
unsold inventory.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to higher throughput levels
and the processing of surface stockpiles. Total cash costs
per ounce for the full year 2016 increased when compared to the
prior-year period due to lower production and higher costs
associated with development work in the new zones that had been
previously excluded from the mine plan.
Under the current life of mine plan, Lapa is only expected to
operate until the end of the first quarter of 2017 with production
coming from the Zone Deep East and Zone 7 Deep areas. The
Company is evaluating opportunities to continue production into the
second quarter of 2017.
Goldex – Continued Strong Operating Performance; Deep 1
Construction Remains on Schedule and Budget
The 100% owned Goldex mine in northwestern Quebec began operation from the M and E
satellite zones in September
2013.
Goldex Mine -
Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
580
|
|
572
|
Tonnes of ore milled
per day
|
6,304
|
|
6,213
|
Gold grade
(g/t)
|
1.39
|
|
1.60
|
Gold production
(ounces)
|
24,170
|
|
27,646
|
Production costs per
tonne (C$)
|
$
|
35
|
|
$
|
31
|
Minesite costs per
tonne (C$)
|
$
|
37
|
|
$
|
31
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
632
|
|
$
|
484
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
657
|
|
$
|
513
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to higher
development costs from the acceleration of mining in the M and E
satellite zones and the timing of unsold inventory.
Production costs per ounce in the fourth quarter of 2016 increased
when compared to the prior-year period due to lower production and
lower flexibility from mining smaller stopes and the reasons
described above.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to higher development
costs from the acceleration of mining in the M and E satellite
zones. Total cash costs per ounce in the fourth quarter of
2016 increased when compared to the prior-year period due to lower
production and the reasons described above.
Goldex Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
2,545
|
|
2,313
|
Tonnes of ore milled
per day
|
6,954
|
|
6,336
|
Gold grade
(g/t)
|
1.60
|
|
1.66
|
Gold production
(ounces)
|
120,704
|
|
115,426
|
Production costs per
tonne (C$)
|
$
|
33
|
|
$
|
34
|
Minesite costs per
tonne (C$)
|
$
|
33
|
|
$
|
33
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
525
|
|
$
|
531
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
532
|
|
$
|
538
|
Production costs per tonne for the full year 2016 decreased when
compared to the prior-year period due to higher throughput levels
and timing of unsold inventory. Production costs per ounce
for the full year 2016 decreased due to higher production and
timing of unsold inventory.
Minesite costs per tonne for the full year 2016 were the same
when compared to the prior-year period. Total cash costs per
ounce for the full year 2016 decreased when compared to the
prior-year period due to higher production.
Commissioning of the Deep 1 project remains on budget and
schedule for early 2018. Approximately 92% of the underground
excavation for the Rail-Veyor has been completed and installation
is progressing as planned. Underground development of the
sublevels needed for mining is continuing. The surface power
infrastructure has been upgraded and a new booster fan has been
installed and commissioning is underway.
Studies are ongoing to evaluate the potential to increase
throughput from the Deep 1 Zone and the potential to mine a portion
of the Deep 2 Zone, both of which could enhance production levels
or extend the current mine life at Goldex and reduce operating
costs.
Agnico Eagle acquired the Akasaba West gold-copper
deposit in January 2014. Located less than 30 kilometres from
Goldex, the Akasaba West deposit could create flexibility and
synergies for the Company's operations in the Abitibi region by
utilizing extra milling capacity at both Goldex and LaRonde, while
reducing overall costs. The BAPE process has commenced at
Akasaba and permitting activities are expected to continue until
2018. The Company expects to begin sourcing open pit ore from
Akasaba West in 2019.
The Quebec BAPE is currently holding public hearings on the
Akasaba project. The first part of the hearings was held at
the end of January 2017 and the
second part is scheduled for the end of February 2017. The
project is also under review by Environment Canada ("EC").
Responses to the third series of questions received from EC in
January 2017, will be submitted by
the end of February 2017. Both processes are expected to be
completed in the second half of 2017.
NUNAVUT REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable
jurisdiction with enormous geological potential. With the
Company's largest producing mine (Meadowbank) and two significant
development assets (Meliadine and the Amaruq satellite deposit at
Meadowbank) and other exploration projects, Nunavut has the potential to be a strategic
operating platform with the ability to generate strong production
and cash flows over several decades.
Meadowbank – Evaluating Options to Extend Production through
year-end 2018
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in
March 2010.
Meadowbank Mine -
Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
1,015
|
|
1,028
|
Tonnes of ore milled
per day
|
11,029
|
|
11,168
|
Gold grade
(g/t)
|
3.14
|
|
3.31
|
Gold production
(ounces)
|
94,770
|
|
102,580
|
Production costs per
tonne (C$)
|
$
|
66
|
|
$
|
63
|
Minesite costs per
tonne (C$)
|
$
|
72
|
|
$
|
62
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
551
|
|
$
|
479
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
579
|
|
$
|
526
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to a lower
amount of stripping costs being capitalized and timing of unsold
inventory. Production costs per ounce in the fourth quarter
of 2016 increased when compared to the prior-year period due to
lower production and the reasons described above.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to a lower amount of
stripping costs being capitalized. Total cash costs per ounce
in the fourth quarter of 2016 increased when compared to the
prior-year period due to lower production and the reason described
above.
Meadowbank Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
3,915
|
|
4,033
|
Tonnes of ore milled
per day
|
10,697
|
|
11,049
|
Gold grade
(g/t)
|
2.70
|
|
3.16
|
Gold production
(ounces)
|
312,214
|
|
381,804
|
Production costs per
tonne (C$)
|
$
|
73
|
|
$
|
71
|
Minesite costs per
tonne (C$)
|
$
|
74
|
|
$
|
70
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
701
|
|
$
|
604
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
715
|
|
$
|
613
|
Production costs per tonne for the full year 2016 increased when
compared to the prior-year period due to lower throughput, a lower
amount of stripping costs being capitalized and timing of unsold
inventory. Production costs per ounce for the full year 2016
increased due to lower production and the reasons described
above.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to lower throughput and a
lower amount of stripping costs being capitalized. Total cash
costs per ounce for the full year 2016 increased when compared to
the prior-year period due to lower production and the reasons
described above.
At Meadowbank, opportunities are being investigated to
potentially extend production at the Vault pit through year-end
2018.
Acquisition of New Properties in Nunavut
Agnico Eagle is currently studying options and alternatives in
Nunavut to capitalize on the large
and growing mineral resource in the region. As part of this
initiative, the Company has staked or optioned approximately
440,000 hectares of mineral claims covering three major geological
belts between Meadowbank and Meliadine.
The new properties appear to be geologically similar to the
Meadowbank and Meliadine projects where the Company's exploration
team has demonstrated the effectiveness of a systematic exploration
approach and the strong mineral potential of this part of
Nunavut. Assembling and
analyzing the data collected in 2016 covering the Amaruq and
Meadowbank region will assist in preparing a drill program for 2017
to further investigate the higher potential areas on the new
properties.
FINLAND AND SWEDEN
Agnico Eagle's Kittila mine in Finland is the largest primary gold producer
in Europe and hosts the Company's
largest mineral reserves. Exploration activities continue to
expand the mineral resources and studies are underway to evaluate
the potential to cost-effectively increase production.
Kittila – Record Annual Production and Mill
Throughput
The 100% owned Kittila mine in northern Finland achieved commercial production in
2009.
Kittila Mine -
Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
401
|
|
377
|
Tonnes of ore milled
per day
|
4,355
|
|
4,100
|
Gold grade
(g/t)
|
4.84
|
|
4.28
|
Gold production
(ounces)
|
53,337
|
|
44,279
|
Production costs per
tonne (EUR)
|
$
|
80
|
|
$
|
77
|
Minesite costs per
tonne (EUR)
|
$
|
83
|
|
$
|
80
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
644
|
|
$
|
727
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
664
|
|
$
|
747
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to higher
contractor and mill maintenance costs and timing of unsold
inventory. Production costs per ounce in the fourth quarter
of 2016 decreased when compared to the prior-year period due to
higher production and timing of unsold inventory.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due higher contractor and
mill maintenance costs. Total cash costs per ounce in the
fourth quarter of 2016 decreased when compared to the prior-year
period due to higher production.
Kittila Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore milled
(thousands of tonnes)
|
1,667
|
|
1,464
|
Tonnes of ore milled
per day
|
4,554
|
|
4,011
|
Gold grade
(g/t)
|
4.41
|
|
4.44
|
Gold production
(ounces)
|
202,508
|
|
177,374
|
Production costs per
tonne (EUR)
|
$
|
77
|
|
$
|
77
|
Minesite costs per
tonne (EUR)
|
$
|
77
|
|
$
|
76
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
701
|
|
$
|
711
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
699
|
|
$
|
709
|
Production costs per tonne for the full year 2016 were the same
when compared to the prior-year period. Production costs per
ounce for the full year 2016 decreased when compared to the
prior-year period due to higher production and timing of unsold
inventory.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to higher contractor and mill
maintenance costs. Total cash costs per ounce for the full
year 2016 decreased when compared to the prior-year period due to
higher production.
The Company is carrying out studies to evaluate the economics of
increasing throughput rates at Kittila to 2.0 million tonnes per
annum. This increased mining rate scenario could be supported
by the development of the Rimpi and Sisar zones. Drilling is
ongoing to further evaluate the Sisar Zone, where mineralization
has now been outlined to a depth of 2.0 kilometres below
surface.
Barsele Project – Resources Update & Drilling Extends
Central, Avan & Skiråsen Zones
On June 11, 2015, Agnico Eagle
acquired a 55% interest in the Barsele project in Sweden. The
Company can earn an additional 15% interest in the project through
the completion of a pre-feasibility study. The Barsele
property is known to contain intrusive-hosted gold mineralization
(the Central, Avan and Skiråsen zones), which appears to be similar
to the Goldex deposit. The property also hosts gold-rich
polymetallic volcanogenic massive sulphide mineralization (the
Norra Zone).
In 2016, a total of 85 diamond drill holes were completed for
33,477 metres. Drilling focused on expanding the mineral
resources on the Central, Avan and Skiråsen zones that are now
interpreted to be part of the same mineralized system extending
over 2.6 kilometres of strike length. These zones occur
within a granodiorite that ranges in width from 200 to 500 metres
over a strike length of more than eight kilometres. Gold is
generally associated with arsenopyrite and low base metal content,
but also occurs as native metal locally.
In 2016, Agnico Eagle completed an initial mineral resource
estimate for the Barsele project that outlined total inferred
mineral resources (on a 100% basis) of 1.2 million ounces (21.7
million tonnes grading 1.72 g/t gold). The mineral resource
can be subdivided into open pit inferred mineral resources of
242,000 ounces (7.4 million tonnes grading 1.02 g/t gold) and an
underground inferred mineral resource of 960,000 ounces (14.3
million tonnes grading 2.08 g/t gold).
Recent drill results indicate that the gap between the Central
and Avan zones may be mineralized.
In 2017, approximately 18,200 metres of drilling (at a budget of
$8.8 million) will be carried out
with a focus to expand the mineral resources along strike and at
depth, and test the gap between the Central and Avan zones.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in
Mexico. These operations
have been the source of growing precious metals production (gold
and silver), stable operating costs and strong free cash flow since
2009. In the fourth quarter of 2016, the Mexican operations
established a new quarterly record for silver production of
approximately 829,000 ounces.
Pinos Altos – Strong
Performance Driven by Record Annual Silver Production
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
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore
processed (thousands of tonnes)
|
556
|
|
600
|
Tonnes of ore
processed per day
|
6,050
|
|
6,529
|
Gold grade
(g/t)
|
2.70
|
|
2.53
|
Gold production
(ounces)
|
46,685
|
|
44,496
|
Production costs per
tonne (USD)
|
$
|
48
|
|
$
|
41
|
Minesite costs per
tonne (USD)
|
$
|
51
|
|
$
|
44
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
567
|
|
$
|
547
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
390
|
|
$
|
417
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to lower
throughput, higher consumable costs (energy), variations in the
proportion of heap leach ore to milled ore and open pit ore to
underground ore, routine fluctuations in the waste to ore stripping
ratio in the open pit mines and timing of unsold inventory.
Production costs per ounce in the fourth quarter of 2016 increased
when compared to the prior-year period due to the reasons described
above.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to lower throughput,
higher consumable costs (energy), variations in the proportion of
heap leach ore to milled ore and open pit ore to underground ore
and routine fluctuations in the waste to ore stripping ratio in the
open pit mines. Total cash costs per ounce in the fourth
quarter of 2016 decreased when compared to the prior-year period
due to higher gold and silver production and favourable foreign
exchange rates.
Pinos Altos Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore
processed (thousands of tonnes)
|
2,260
|
|
2,378
|
Tonnes of ore
processed per day
|
6,175
|
|
6,516
|
Gold grade
(g/t)
|
2.78
|
|
2.68
|
Gold production
(ounces)
|
192,772
|
|
192,974
|
Production costs per
tonne (USD)
|
$
|
51
|
|
$
|
44
|
Minesite costs per
tonne (USD)
|
$
|
49
|
|
$
|
45
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
594
|
|
$
|
545
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
356
|
|
$
|
387
|
Production costs per tonne for the full year 2016 increased when
compared to the prior-year period due to lower throughput, higher
consumable costs (energy), variations in the proportion of heap
leach ore to milled ore and open pit ore to underground ore,
routine fluctuations in the waste to ore stripping ratio in the
open pit mines and timing of unsold inventory. Production
costs per ounce for the full year 2016 increased when compared to
the prior-year period due to the reasons described above.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to lower throughput, a lower
amount of stripping costs being capitalized, higher consumable
costs (energy), variations in the proportion of heap leach ore to
milled ore and open pit ore to underground ore and routine
fluctuations in the waste to ore stripping ratio in the open pit
mines. Total cash costs per ounce for the full year 2016
decreased when compared to the prior-year period due to higher gold
and silver production and favourable foreign exchange rates.
Top soil recovery and earth moving work has commenced on the
Phase III heap leach pad. This work is expected to be
finished by the end of the first quarter of 2017. Plans are
being evaluated to divide the pad into two individual cells to
facilitate faster stacking.
In 2016, drilling at Pinos
Altos successfully replaced the mineral reserves that were
mined. Exploration at the Cerro Colorado Zone outlined
additional mineralization on the boundaries of the zone, and
further drilling will be carried out in 2017 to evaluate this
potential.
Creston Mascota – Exploration at Neighbouring Bravo and
Madrono Zones Could Extend Mine Life
The Creston Mascota heap leach has been operating as a satellite
operation to the Pinos Altos mine
since late 2010.
Creston Mascota
deposit at Pinos Altos - Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore
processed (thousands of tonnes)
|
524
|
|
529
|
Tonnes of ore
processed per day
|
5,694
|
|
5,750
|
Gold grade
(g/t)
|
1.18
|
|
1.23
|
Gold production
(ounces)
|
11,213
|
|
13,933
|
Production costs per
tonne (USD)
|
$
|
15
|
|
$
|
13
|
Minesite costs per
tonne (USD)
|
$
|
15
|
|
$
|
13
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
707
|
|
$
|
507
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
649
|
|
$
|
445
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to lower
tonnes processed, higher re-handling costs and timing of unsold
inventory. Production costs per ounce in the fourth quarter
of 2016 increased when compared to the prior-year period due to
lower production and the reasons described above.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to lower tonnes
processed and higher re-handling costs. Total cash costs per
ounce in the fourth quarter of 2016 increased when compared to the
prior-year period due to reasons described above.
Creston Mascota
deposit at Pinos Altos - Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore
processed (thousands of tonnes)
|
2,119
|
|
2,099
|
Tonnes of ore
processed per day
|
5,790
|
|
5,750
|
Gold grade
(g/t)
|
1.12
|
|
1.34
|
Gold production
(ounces)
|
47,296
|
|
54,703
|
Production costs per
tonne (USD)
|
$
|
13
|
|
$
|
13
|
Minesite costs per
tonne (USD)
|
$
|
13
|
|
$
|
12
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
578
|
|
$
|
480
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
516
|
|
$
|
430
|
Production costs per tonne for the full year 2016 were the same
when compared to the prior-year period. Production costs per
ounce for the full year 2016 increased when compared to the
prior-year period due to lower production and timing of unsold
inventory.
Minesite costs per tonne for the full year 2016 increased when
compared to the prior-year period due to higher re-handling costs.
Total cash costs per ounce for the full year 2016 increased
when compared to the prior-year period due to lower production.
In the fourth quarter of 2016, work on the Phase IV leach pad
was completed with stacking of material expected to begin in the
first quarter of 2017.
Exploration drilling in 2016 yielded favorable results from the
Bravo and Madrono zones, which are
both located close to the Creston Mascota open pit.
Highlights from recent drilling at the Bravo Zone include: 6.1
metres grading 8.8 g/t gold and 106 g/t silver in hole BRV-16-086;
9.8 metres grading 4.5 g/t gold and 75 g/t silver in hole
BRV-16-120; and 11.1 metres grading 7.9 g/t gold and 282 g/t silver
in hole BRV-16-133.
Highlights from recent drilling at the Madrono Zone include:
19.2 metres grading 2.2 g/t gold and 17 g/t silver in hole
MAD-16-035; and 5.1 metres grading 2.0 g/t gold and 4.7 g/t silver
in hole MAD-16-034.
Selected recent drill results from the Bravo and Madrono zones and the collar
coordinates are set out in the table below. Hole locations
are also shown on the Creston Mascota Plan map. All
intercepts reported for the Bravo
and Madrono zones show uncapped grades over estimated true
widths.
Recent exploration drill results Bravo and Madrono zones
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of midpoint
below surface (metres)
|
Estimated true width
(metres)
|
Gold grade (g/t)
(uncapped)
|
Silver grade (g/t)
(uncapped)
|
BRV-16-077
|
Bravo
|
63.7
|
81.8
|
85
|
13.9
|
7.3
|
166.0
|
BRV-16-078
|
Bravo
|
68.3
|
80.8
|
83
|
9.6
|
4.5
|
166.1
|
BRV-16-086
|
Bravo
|
84.2
|
92.1
|
109
|
6.1
|
8.8
|
105.7
|
BRV-16-104
|
Bravo
|
24.5
|
31.5
|
38
|
5.4
|
1.5
|
27.0
|
and
|
|
67.5
|
81.1
|
95
|
10.5
|
2.2
|
29.9
|
BRV-16-120
|
Bravo
|
65.3
|
78.2
|
83
|
9.8
|
4.5
|
74.8
|
BRV-16-122
|
Bravo
|
66.9
|
78.5
|
87
|
8.9
|
11.9
|
149.4
|
BRV-16-133
|
Bravo
|
59.3
|
64.0
|
70
|
3.6
|
0.7
|
1.8
|
and
|
|
69.1
|
83.6
|
79
|
11.1
|
7.9
|
282.2
|
including
|
|
79.0
|
83.6
|
86
|
3.5
|
19.6
|
642.8
|
MAD-16-034
|
Madroño
|
63.2
|
70.0
|
70
|
4.8
|
0.7
|
11.6
|
and
|
|
79.5
|
85.5
|
92
|
4.2
|
0.4
|
3.5
|
and
|
|
212.3
|
219.5
|
211
|
5.1
|
2.0
|
4.7
|
MAD-16-035
|
Madroño
|
80.9
|
108.0
|
100
|
19.2
|
2.2
|
17.1
|
and
|
|
146.4
|
150.9
|
120
|
3.2
|
0.3
|
1.7
|
and
|
|
223.2
|
237.3
|
235
|
9.9
|
9.9
|
8.8
|
Cut-off value 0.30 g/t gold, maximum 3.0-m internal
dilution
Bravo and Madrono prospect
drill collar coordinates
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM North
|
UTM East
|
Elevation (metres
above sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
BRV-16-077
|
3135203
|
760174
|
1,629
|
090
|
-43
|
111
|
BRV-16-078
|
3135151
|
760165
|
1,616
|
088
|
-48
|
129
|
BRV-16-086
|
3135292
|
760194
|
1,651
|
091
|
-45
|
111
|
BRV-16-104
|
3135278
|
760218
|
1,667
|
089
|
-45
|
144
|
BRV-16-120
|
3135181
|
760175
|
1,625
|
088
|
-44
|
117
|
BRV-16-122
|
3135124
|
760172
|
1,611
|
089
|
-45
|
123
|
BRV-16-133
|
3135152
|
760137
|
1,599
|
090
|
-45
|
123
|
MAD-16-034
|
3134992
|
761464
|
2,014
|
359
|
-43
|
243
|
MAD-16-035
|
3134975
|
761498
|
2,045
|
003
|
-47
|
265
|
*Coordinate System UTM Nad 27 Zone
[Creston Mascota – Local Geology Map]
The Company believes that these two zones could potentially
extend the life of the Creston Mascota heap leach facility.
In addition, the Company believes that the Bravo, Madrono and Cubiro zones may have
higher grade areas that could potentially provide additional feed
to the Pinos Altos mill.
Additional drilling is planned for 2017.
La India – Increased Mineral
Reserves and Mineral Resources at Year-End 2016
The La India mine in Sonora,
Mexico, located approximately 70 kilometres from the
Company's Pinos Altos mine,
achieved commercial production in February
2014.
La India Mine -
Operating Statistics
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore
processed (thousands of tonnes)
|
1,540
|
|
1,439
|
Tonnes of ore
processed per day
|
16,744
|
|
15,647
|
Gold grade
(g/t)
|
0.87
|
|
0.84
|
Gold production
(ounces)
|
28,714
|
|
23,432
|
Production costs per
tonne (USD)
|
$
|
10
|
|
$
|
9
|
Minesite costs per
tonne (USD)
|
$
|
9
|
|
$
|
8
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
510
|
|
$
|
549
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
437
|
|
$
|
485
|
Production costs per tonne in the fourth quarter of 2016
increased when compared to the prior-year period due to higher
chemical reagent costs and timing of unsold inventory.
Production costs per ounce in the fourth quarter of 2016 decreased
when compared to the prior-year period due to higher
production.
Minesite costs per tonne in the fourth quarter of 2016 increased
when compared to the prior-year period due to higher chemical
reagent costs. Total cash costs per ounce in the fourth
quarter of 2016 decreased when compared to the prior-year period
due to higher gold and silver production.
La India Mine -
Operating Statistics
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
December 31,
2016
|
|
December 31,
2015
|
Tonnes of ore
processed (thousands of tonnes)
|
5,837
|
|
5,371
|
Tonnes of ore
processed per day
|
15,949
|
|
14,716
|
Gold grade
(g/t)
|
0.81
|
|
0.95
|
Gold production
(ounces)
|
115,162
|
|
104,362
|
Production costs per
tonne (USD)
|
$
|
9
|
|
$
|
9
|
Minesite costs per
tonne (USD)
|
$
|
9
|
|
$
|
9
|
Production costs per
ounce of gold produced ($ per ounce):
|
$
|
432
|
|
$
|
475
|
Total cash costs per
ounce of gold produced ($ per ounce):
|
$
|
395
|
|
$
|
436
|
Production costs per tonne for the full year 2016 were the same
when compared to the prior-year period. Production costs per
ounce for the full year 2016 decreased when compared to the
prior-year period due to higher production and timing of unsold
inventory.
Minesite costs per tonne for the full year 2016 were the same
when compared to the prior-year period. Total cash costs per
ounce for the full year 2016 decreased when compared to the
prior-year period due to higher gold and silver production.
Additional drilling was carried out at La India in 2016, with a
focus on extending mineralization in the Main Zone and the La India
Zone and conversion of sulfide mineralization into mineral reserves
and mineral resources. The 2016 exploration program resulted
in a 18% increase in mineral reserves and a 5% increase in measured
and indicated mineral resources. Further details on the La
India mineral reserves and mineral resources are presented in the
mineral reserve and mineral resource section of this news
release.
Step out drilling in 2016 at the nearby El Realito project also yielded encouraging
results. Additional exploration work is planned at
El Realito and the Cerro de Oro
areas in 2017. Geological work is continuing at Los Tubos to
also define drill targets for 2017. With the increased
mineral reserves and mineral resources, and potential for future
additions at other satellite zones, studies are underway to look at
potential expansion options at La India.
El Barqueno – 2016 Program Focused on Infill Drilling and
Testing New Targets
Agnico Eagle acquired its 100% interest in the El Barqueno
project in November 2014 with the
acquisition of Cayden Resources Inc. The 32,840-hectare
property is in the Guachinango
gold-silver mining district of Jalisco State in west-central,
Mexico, approximately 150
kilometres west of the state capital of Guadalajara.
The El Barqueno project contains a number of known mineralized
zones and several prospects. In 2016, a total of 325 diamond
drill holes (74,503 metres) were completed. Drilling in 2016
was primarily focused on:
- Infill drilling on the Azteca-Zapoteca and Pena de Oro zones that allowed the conversion of
301,000 ounces of gold (8.5 million tonnes grading 1.11 g/t
gold) into indicated mineral resource category
- Testing the recently discovered Socorro Vein, at Olmeca on
an 80 metre by 80 metre drill pattern to produce an initial
inferred mineral resource estimate of 135,300 ounces (1.5
million tonnes grading 2.73 g/t gold)
El Barqueno contains a total of 362,000 ounces of gold
in inferred mineral resources (7.2 million tonnes grading 1.56
g/t gold), including an initial inferred mineral resource at
Olmeca. The significant increase in average grade is due to new
Socorro resources and the utilization of a higher cut-off grade,
reflecting more conservative assumptions for heap leach recoveries
than previously used. Additional metallurgical test work is
ongoing.
[El Barqueno Project – Local Geology Map]
Gold and silver grades of recent intercepts from the recently
discovered Socorro and Mortero
zones in the Olmeca area are set out in the table below and the
drill collars are located in the accompanying table as well as on
the project geology map. All intercepts reported for the El
Barqueno project show capped or uncapped grades (depending on the
zone) over estimated true widths, based on a preliminary
geological interpretation that will be updated as new information
becomes available with further drilling.
Selected recent exploration drill results from the El
Barqueno project
Drill Hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of midpoint
below surface (metres)
|
Estimated true width
(metres)
|
Gold grade (g/t)
(uncapped)
|
Gold grade (g/t)
(capped)*
|
Silver grade (g/t)
(uncapped)**
|
OLM-16-022
|
MORTERO
|
87.3
|
133.0
|
80
|
39.6
|
NSV
|
NA
|
50.8
|
OLM-16-026
|
MORTERO
|
16.0
|
66.0
|
39
|
41.0
|
NSV
|
NA
|
73.2
|
(including)
|
MORTERO
|
22.0
|
25.0
|
23
|
2.5
|
NSV
|
NA
|
382.5
|
OLM-16-066
|
MORTERO
|
169.5
|
189.5
|
124
|
16.4
|
NSV
|
NA
|
1,111.1
|
(including)
|
MORTERO
|
179.3
|
188.0
|
127
|
7.1
|
NSV
|
NA
|
2,469.0
|
(including)
|
MORTERO
|
179.3
|
183.5
|
125
|
3.4
|
NSV
|
NA
|
4,194.8
|
OLM-16-003
|
SOCORRO
|
123.0
|
129.0
|
69
|
5.2
|
19.09
|
11.86
|
14.1
|
(including)
|
SOCORRO
|
126.0
|
128.0
|
70
|
1.7
|
47.95
|
26.25
|
33.7
|
OLM-16-008
|
SOCORRO
|
160.0
|
165.0
|
96
|
4.3
|
2.83
|
|
4.8
|
OLM-16-010
|
SOCORRO
|
131.0
|
145.0
|
84
|
12.1
|
6.97
|
6.52
|
4.7
|
(Including)
|
SOCORRO
|
132.0
|
133.1
|
81
|
1.0
|
40.70
|
35.00
|
18.5
|
(Including)
|
SOCORRO
|
137.0
|
138.0
|
84
|
0.9
|
31.00
|
31.00
|
7.2
|
OLM-16-013
|
SOCORRO
|
167.5
|
179.5
|
155
|
6.9
|
7.29
|
6.51
|
13.2
|
(including)
|
SOCORRO
|
167.5
|
173.0
|
152
|
3.2
|
15.28
|
13.59
|
16.9
|
OLM-16-020
|
SOCORRO
|
65.0
|
69.0
|
74
|
3.3
|
0.84
|
0.84
|
22.4
|
OLM-16-023
|
SOCORRO
|
44.1
|
48.6
|
31
|
3.9
|
4.12
|
4.12
|
9.2
|
OLM-16-051
|
SOCORRO
|
20.4
|
24.3
|
15
|
3.2
|
3.14
|
3.14
|
8.7
|
OLM-16-054
|
SOCORRO
|
40.9
|
46.0
|
43
|
4.2
|
1.00
|
1.00
|
0.4
|
* Holes at the Socorro vein use a capping factor of 35 g/t
gold. Hole at the Mortero vein do
not use a capping factor.
** Holes at the Socorro vein use a capping factor of 90 g/t
silver, but all reported grades were below this level. Holes at the
Mortero vein do not use a capping
factor.
El Barqueno project exploration drill hole collar
coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM North
|
UTM East
|
Elevation (metres
above sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
(degrees)
|
OLM-16-003
|
560,672
|
2,280,468
|
1,384
|
155
|
-50.0
|
488.0
|
OLM-16-008
|
561,195
|
2,280,600
|
1,392
|
155
|
-50.0
|
323.3
|
OLM-16-010
|
561,386
|
2,280,658
|
1,402
|
155
|
-50.0
|
286.7
|
OLM-16-013
|
560,672
|
2,280,469
|
1,383
|
155
|
-75.0
|
396.5
|
OLM-16-020
|
560,838
|
2,280,406
|
1,352
|
155
|
-55.0
|
183.0
|
OLM-16-022
|
558,359
|
2,279,716
|
1,585
|
0
|
-50.0
|
146.4
|
OLM-16-023
|
561,325
|
2,280,560
|
1,372
|
155
|
-50.0
|
164.7
|
OLM-16-026
|
558,407
|
2,279,757
|
1,549
|
0
|
-55.0
|
454.5
|
OLM-16-051
|
561,386
|
2,280,554
|
1,374
|
155
|
-55.0
|
175.4
|
OLM-16-054
|
561,787
|
2,280,744
|
1,403
|
155
|
-55.0
|
160.1
|
OLM-16-066
|
558,310
|
2,279,660
|
1,635
|
0
|
-55.0
|
364.5
|
* Coordinate System UTM WGS84 13N Zone
Olmeca Area
In 2016, a total of 40 drill holes (10,653 metres) were
completed mainly Socorro and Mortero veins in the
Olmeca area. There are currently two drills on the Olmeca prospect
with a third drill expected to be added later in February 2017.
The Socorro Vein has been defined as a 1,600-metre long,
east-northeast-striking, and steeply north-dipping, gold-bearing
structure that includes high-grade gold values. Initial intercepts
from the Socorro Vein were reported by the Company in 2016. The
Socorro Vein remains open to the east, to the west and at
depth. Additional drilling is planned in the first half of
2017 to test for extensions to this structure and to test for
additional subparallel structures.
The Mortero Vein, located some 2.0 kilometres west of the
Socorro Vein, has been delineated over a 300-metre strike length
and to a depth of approximately 300 metres. High grade silver
values have been found such as in hole OLM16-066 that
intersected 1,111 g/t silver over 16.4 metres at 124 metres
depth, including 4,195 g/t silver over 3.4 metres at 125 metres
depth. Gold values have generally been low in this part of
the system and additional drilling is required at depth to test for
a potentially higher grade gold zone. The Mortero Vein is open in
all directions with drilling continuing at depth and along strike
both to the east and west.
It is unclear whether the Socorro and Mortero veins form part of the same
mineralized structure. The Company believes there is strong
potential for additional structures.
Five additional subparallel gold-bearing structures with
extensive alteration zones have been located within the Olmeca area
through prospecting, and geological mapping as well as soil, rock,
and hyperspectral surveys. Drilling commenced on both the
Tierra Blanca and Carmen targets
in late 2016 and will continue into the first quarter of 2017.
Cuauhtémoc Area
Drilling will begin in this area shortly, initially
with two drills tracing the southwest extent of the
Azteca-Zapoteca Zone. A gold-bearing structure has been defined
over a length of approximately 2,000 metres from surface
mapping.
Additional Target Areas
Approximately 45,000 metres of additional drilling is expected
to be completed by the end of 2017 at the El Barqueno project,
principally at the Socorro, Mortero, Tierra Blanca,
Cuauhtémoc, Peña de Oro, Peña Blanca, San
Diego, and El Rayo
prospects and in the Tecolote-Tortuga areas, within the south area
of the El Barqueno project. Exploration expenditures in 2017
are expected to total approximately $16.8
million.
While it is too early to estimate the full extent of the mineral
resources and the number of deposits with economic potential at El
Barqueno, the Company has the experience of developing
cost-efficient mining operations in Mexico and increasing their size through
successful exploration as well as metallurgical innovation.
This experience will be applied as El Barqueno continues to
be explored and studied.
Agnico Eagle believes that El Barqueno ultimately has the
potential to be developed into a series of open pits utilizing heap
leach and/or mill processing, similar to the Pinos Altos mine. Conceptual design
studies and additional metallurgical testing are ongoing at El
Barqueno.
Senior Management Changes
Tim Haldane, Senior
Vice-President Operations - USA
& Latin America retired in
early February this year. Tim was instrumental in the
acquisition and development of the Company's Mexican mining
operations and greatly contributed to the Company's excellent
operating performance. He will continue to serve the Company
as an advisor to senior management.
Additional changes to Agnico Eagle's senior management team
include:
Marc Legault has moved into a new
role as Senior Vice-President Operations USA, Mexico & Latin America. In this role Marc will
manage Agnico Eagle's Southern Business operations.
Alain Blackburn, Senior
Vice-President, Exploration, will now manage the Company's project
evaluation team and work closely with the corporate development
team while continuing to be responsible for the exploration
group.
Annual General Meeting
Friday, April 28, 2017 at
11:00 am (E.D.T.)
Sheraton Centre Toronto Hotel (Grand Ballroom)
123 Queen Street West
Toronto, ON M5H 2M9
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its eight 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 Sweden. 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.
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", "net debt" and "adjusted net income"
that are not standardized measures under IFRS. These data may
not be comparable to data reported by other issuers. 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, 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 (before 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 for by-product revenues, unsold
concentrate 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 these measures 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.
The Company calculates all-in sustaining costs per ounce of gold
produced on a by-product basis as the aggregate of total cash costs
per ounce on a by-product basis, sustaining capital expenditures
(including capitalized exploration), general and administrative
expenses (including stock options) and reclamation expenses, and
then dividing by the number of ounces of gold produced. The
all-in sustaining costs per ounce of gold produced on a co-product
basis is calculated in the same manner as the all-in sustaining
costs per ounce of gold produced on a by-product basis, except that
the total cash costs per ounce on a co-product basis are used,
meaning no adjustment is made for by-product metal revenues.
All-in sustaining costs 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 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.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income for
unsold concentrate inventory production costs, and then dividing by
tonnes 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 provides 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.
Net debt is calculated by adjusting the total of the current
portion of long-term debt and non-current long-term debt as
recorded on the consolidated balance sheet for deferred financing
costs, cash and cash equivalents and short-term investments.
Management uses net debt to determine the overall debt position and
to evaluate future debt capacity of the Company.
Adjusted net income is calculated by adjusting the basic net
income per share as recorded in the consolidated statements of
income for 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.
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, all-in sustaining
costs per ounce and minesite costs per tonne. The estimates
are based upon the total cash costs per ounce, all-in sustaining
costs 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
February 15, 2017. 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". 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: the
Company's forward-looking production guidance, including estimated
ore grades, project timelines, drilling results, metal production,
life of mine estimates, total cash costs per ounce, all-in
sustaining costs per ounce, minesite costs per tonne, other
expenses and cash flows; the estimated timing and conclusions of
technical reports and other studies; the methods by which ore will
be extracted or processed; statements concerning the Company's
plans to build operations at Meliadine, Amaruq and LaRonde Zone 5
including the timing and funding thereof; statements concerning
other expansion projects, recovery rates, mill throughput,
optimization and projected exploration expenditures, including
costs and other estimates upon which such projections are based;
statements regarding timing and amounts of capital expenditures and
other assumptions; estimates of future mineral reserves, mineral
resources, mineral production, optimization efforts and sales;
estimates of mine life; estimates of future capital expenditures
and other cash needs, and expectations as to the funding thereof;
statements as to 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; estimates of
mineral reserves and mineral resources; statements regarding the
Company's ability to obtain the necessary permits and
authorizations in connection with its 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 and statements
regarding the sufficiency of the Company's cash resources and other
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, 2015
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2015 ("Form 40-F") filed with the
U.S. Securities and Exchange Commission (the "SEC") as well as:
that there are no significant disruptions affecting operations;
that production, permitting, development and expansion 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 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 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; mining
risks; community protests; risks associated with foreign
operations; the unfavorable outcome of litigation involving the
Partnership; 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
Cautionary Note to Investors Concerning Estimates of Measured
and Indicated Mineral Resources
This news release uses the terms "measured mineral resources"
and "indicated mineral resources". Investors are advised that
while those terms are recognized and required by Canadian
regulations, the SEC does not recognize them. Investors
are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into
mineral reserves.
Cautionary Note to Investors Concerning Estimates of
Inferred Mineral Resources
This news release also uses the term "inferred mineral
resources". Investors are advised that while this term is
recognized and required by Canadian regulations, the SEC does not
recognize it. "Inferred mineral resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that any
part or all of an inferred mineral resource
exists, or is economically or legally mineable.
Scientific and Technical Data
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Christian Provencher, Eng.,
Vice-President, Canada; relating
to Nunavut operations has been
approved by Dominique Girard, Eng., Vice-President, Nunavut
Operations; relating to the Finland operations has been approved by
Francis Brunet, Eng., Corporate Director Mining; relating to
Southern Business operations has been approved by Carol Plummer,
Eng., Vice-President, Project Development, Southern Business; and
relating to exploration has been approved by Alain Blackburn, Eng., Senior Vice-President,
Exploration and Guy Gosselin, Eng. and P.Geo., Vice-President,
Exploration. Each of them 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 Daniel
Doucet, Eng., Senior Corporate Director, Reserve Development; and
relating to mineral reserves and mineral resources at the Canadian
Malartic mine contained herein has been approved by Donald Gervais, P.Geo., Director of Technical
Services at CMC. Each of them is a "Qualified Person" for the
purposes of NI 43-101.
AGNICO EAGLE MINES
LIMITED DETAILED MINERAL RESERVES AND RESOURCES DATA
|
As of December 31,
2016
|
|
|
OPERATIONS
|
MINERAL
RESERVES
|
|
|
|
|
|
|
|
PROVEN
|
PROBABLE
|
PROVEN &
PROBABLE
|
GOLD
|
OWNERSHIP
|
000 tonnes
|
g/t
|
000 oz Au
|
000 tonnes
|
g/t
|
000 oz Au
|
000 tonnes
|
g/t
|
000 oz Au
|
LaRonde
(underground)
|
100%
|
5,833
|
4.91
|
921
|
11,758
|
5.64
|
2,132
|
17,591
|
5.40
|
3,053
|
LaRonde Zone 5
(underground)
|
100%
|
2,836
|
2.12
|
194
|
3,429
|
2.08
|
230
|
6,265
|
2.10
|
423
|
Canadian Malartic
(open pit)
|
50%
|
25,560
|
0.95
|
785
|
76,274
|
1.13
|
2,764
|
101,834
|
1.08
|
3,548
|
Goldex
(underground)
|
100%
|
294
|
1.47
|
14
|
16,507
|
1.64
|
872
|
16,801
|
1.64
|
886
|
Akasaba West (open
pit)
|
100%
|
-
|
-
|
-
|
4,942
|
0.89
|
142
|
4,942
|
0.89
|
142
|
Lapa
(underground)
|
100%
|
259
|
4.58
|
38
|
-
|
-
|
-
|
259
|
4.58
|
38
|
Meadowbank (open
pit)
|
100%
|
1,704
|
1.75
|
96
|
6,515
|
2.94
|
615
|
8,219
|
2.69
|
711
|
|
Meliadine (open
pit)
|
|
34
|
7.31
|
8
|
4,001
|
5.00
|
644
|
4,035
|
5.02
|
652
|
|
Meliadine
(underground)
|
|
-
|
-
|
-
|
10,494
|
8.20
|
2,766
|
10,494
|
8.20
|
2,766
|
Meliadine
Total
|
100%
|
34
|
7.31
|
8
|
14,495
|
7.32
|
3,410
|
14,529
|
7.32
|
3,417
|
Upper Beaver
(underground)
|
50%
|
-
|
-
|
-
|
3,996
|
5.43
|
698
|
3,996
|
5.43
|
698
|
|
Kittila
(underground)
|
100%
|
1,148
|
4.19
|
155
|
28,907
|
4.65
|
4,325
|
30,055
|
4.64
|
4,479
|
|
Pinos Altos (open
pit)
|
|
180
|
0.85
|
5
|
2,525
|
2.07
|
168
|
2,705
|
1.99
|
173
|
|
Pinos Altos
(underground)
|
|
3,331
|
2.79
|
299
|
11,364
|
2.61
|
953
|
14,696
|
2.65
|
1,251
|
Pinos Altos
Total
|
100%
|
3,512
|
2.69
|
304
|
13,889
|
2.51
|
1,120
|
17,401
|
2.55
|
1,424
|
Creston Mascota (open
pit)
|
100%
|
65
|
0.94
|
2
|
2,426
|
1.29
|
100
|
2,491
|
1.28
|
102
|
La India (open
pit)
|
100%
|
213
|
0.61
|
4
|
43,756
|
0.72
|
1,016
|
43,969
|
0.72
|
1,020
|
Total
|
|
41,458
|
1.89
|
2,520
|
226,895
|
2.39
|
17,423
|
268,353
|
2.31
|
19,943
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
OWNERSHIP
|
000 tonnes
|
g/t
|
000 oz Ag
|
000 tonnes
|
g/t
|
000 oz Ag
|
000 tonnes
|
g/t
|
000 oz Ag
|
LaRonde
(underground)
|
100%
|
5,833
|
18.31
|
3,434
|
11,758
|
19.56
|
7,393
|
17,591
|
19.14
|
10,827
|
|
Pinos Altos (open
pit)
|
|
180
|
67.77
|
393
|
2,525
|
59.81
|
4,856
|
2,705
|
60.34
|
5,249
|
|
Pinos Altos
(underground)
|
|
3,331
|
75.26
|
8,061
|
11,364
|
67.92
|
24,817
|
14,696
|
69.59
|
32,878
|
Pinos Altos
Total
|
100%
|
3,512
|
74.88
|
8,454
|
13,889
|
66.45
|
29,673
|
17,401
|
68.15
|
38,127
|
Creston Mascota (open
pit)
|
100%
|
65
|
8.07
|
17
|
2,426
|
11.44
|
892
|
2,491
|
11.35
|
909
|
La India (open
pit)
|
100%
|
213
|
14.67
|
100
|
43,756
|
2.57
|
3,615
|
43,969
|
2.63
|
3,716
|
Total
|
|
-
|
-
|
12,006
|
-
|
-
|
41,573
|
-
|
-
|
53,579
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
OWNERSHIP
|
000 tonnes
|
%
|
tonnes Cu
|
000 tonnes
|
%
|
tonnes Cu
|
000 tonnes
|
%
|
tonnes Cu
|
LaRonde
(underground)
|
100%
|
5,833
|
0.24
|
13,736
|
11,758
|
0.24
|
28,589
|
17,591
|
0.24
|
42,325
|
Akasaba West (open
pit)
|
100%
|
-
|
-
|
-
|
4,942
|
0.50
|
24,851
|
4,942
|
0.50
|
24,851
|
Upper Beaver
(underground)
|
50%
|
-
|
-
|
-
|
3,996
|
0.25
|
9,990
|
|
|
|
Total
|
|
-
|
-
|
13,736
|
-
|
-
|
63,430
|
-
|
-
|
77,166
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
OWNERSHIP
|
000 tonnes
|
%
|
tonnes Zn
|
000 tonnes
|
%
|
tonnes Zn
|
000 tonnes
|
%
|
tonnes Zn
|
LaRonde
(underground)
|
100%
|
5,833
|
0.41
|
23,706
|
11,758
|
1.10
|
128,864
|
17,591
|
0.87
|
152,569
|
Total
|
|
-
|
-
|
23,706
|
-
|
-
|
128,864
|
-
|
-
|
152,569
|
OPERATIONS
|
MINERAL
RESOURCES
|
|
|
|
|
|
|
|
|
MEASURED
|
INDICATED
|
MEASURED AND
INDICATED
|
INFERRED
|
GOLD
|
OWNERSHIP
|
000 tonnes
|
g/t
|
000 oz Au
|
000 tonnes
|
g/t
|
000 oz Au
|
000 tonnes
|
g/t
|
000 oz Au
|
000 tonnes
|
g/t
|
000 oz Au
|
LaRonde
(underground)
|
100%
|
-
|
-
|
-
|
5,688
|
3.27
|
598
|
5,688
|
3.27
|
598
|
7,701
|
6.68
|
1,655
|
LaRonde Zone 5
(underground)
|
100%
|
-
|
-
|
-
|
8,897
|
2.49
|
712
|
8,897
|
2.49
|
712
|
2,873
|
5.28
|
488
|
Ellison
(underground)
|
100%
|
-
|
-
|
-
|
653
|
3.25
|
68
|
653
|
3.25
|
68
|
2,346
|
3.41
|
257
|
Canadian Malartic
(open pit)
|
50%
|
2,001
|
1.34
|
86
|
11,121
|
1.56
|
559
|
13,122
|
1.53
|
644
|
4,599
|
1.46
|
216
|
Odyssey
(underground)
|
50%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
10,343
|
2.15
|
714
|
Goldex
(underground)
|
100%
|
12,360
|
1.86
|
739
|
17,949
|
1.80
|
1,038
|
30,309
|
1.82
|
1,777
|
21,882
|
1.60
|
1,129
|
Akasaba West (open
pit)
|
100%
|
-
|
-
|
-
|
2,484
|
0.66
|
53
|
2,484
|
0.66
|
53
|
-
|
-
|
-
|
Lapa
(underground)
|
100%
|
85
|
5.29
|
14
|
693
|
4.09
|
91
|
778
|
4.22
|
105
|
652
|
7.55
|
158
|
Zulapa (open
pit)
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
391
|
3.14
|
39
|
Swanson (open
pit)
|
100%
|
-
|
-
|
-
|
504
|
1.93
|
31
|
504
|
1.93
|
31
|
-
|
-
|
-
|
Meadowbank (open
pit)
|
100%
|
587
|
1.00
|
19
|
3,099
|
2.28
|
227
|
3,686
|
2.07
|
246
|
1,142
|
3.13
|
115
|
|
Amaruq (open
pit)
|
|
-
|
-
|
-
|
16,925
|
3.88
|
2,109
|
16,925
|
3.88
|
2,109
|
4,931
|
4.81
|
763
|
|
Amaruq
(underground)
|
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6,814
|
6.22
|
1,362
|
Amaruq
Total
|
100%
|
-
|
-
|
-
|
16,925
|
3.88
|
2,109
|
16,925
|
3.88
|
2,109
|
11,745
|
5.63
|
2,125
|
|
Meliadine (open
pit)
|
|
-
|
-
|
-
|
7,867
|
4.24
|
1,072
|
7,867
|
4.24
|
1,072
|
1,054
|
5.35
|
181
|
|
Meliadine
(underground)
|
|
-
|
-
|
-
|
12,911
|
5.38
|
2,234
|
12,911
|
5.38
|
2,234
|
13,656
|
7.68
|
3,371
|
Meliadine
Total
|
100%
|
-
|
-
|
-
|
20,778
|
4.95
|
3,306
|
20,778
|
4.95
|
3,306
|
14,710
|
7.51
|
3,552
|
Hammond Reef (open
pit)
|
50%
|
82,831
|
0.70
|
1,862
|
21,377
|
0.57
|
389
|
104,208
|
0.67
|
2,251
|
251
|
0.74
|
6
|
Upper Beaver
(underground)
|
50%
|
-
|
-
|
-
|
1,818
|
3.45
|
202
|
1,818
|
3.45
|
202
|
4,344
|
5.07
|
708
|
AK
(underground)
|
50%
|
-
|
-
|
-
|
634
|
6.51
|
133
|
634
|
6.51
|
133
|
1,187
|
5.32
|
203
|
Anoki/McBean
(underground)
|
50%
|
-
|
-
|
-
|
934
|
5.33
|
160
|
934
|
5.33
|
160
|
1,263
|
4.70
|
191
|
|
Kittila (open
pit)
|
|
-
|
-
|
-
|
229
|
3.41
|
25
|
229
|
3.41
|
25
|
373
|
3.89
|
47
|
|
Kittila
(underground)
|
|
1,607
|
2.45
|
127
|
18,885
|
2.95
|
1,794
|
20,492
|
2.91
|
1,920
|
10,686
|
4.06
|
1,395
|
Kittila
Total
|
100%
|
1,607
|
2.45
|
127
|
19,114
|
2.96
|
1,819
|
20,721
|
2.92
|
1,946
|
11,059
|
4.05
|
1,442
|
Kuotko, Finland (open
pit)
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
396
|
2.88
|
37
|
Kylmäkangas, Finland
(underground)
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,896
|
4.11
|
250
|
|
Barsele, Sweden (open
pit)
|
|
|
|
|
|
|
|
|
|
|
4,057
|
1.02
|
133
|
|
Barsele, Sweden
(underground)
|
|
|
|
|
|
|
|
|
|
|
7,887
|
2.08
|
528
|
Barsele
Total
|
55%
|
|
|
|
|
|
|
|
|
|
11,944
|
1.72
|
661
|
|
Pinos Altos (open
pit)
|
|
-
|
-
|
-
|
236
|
1.07
|
8
|
236
|
1.07
|
8
|
5,984
|
0.61
|
117
|
|
Pinos Altos
(underground)
|
|
-
|
-
|
-
|
13,751
|
1.63
|
721
|
13,751
|
1.63
|
721
|
3,241
|
2.52
|
262
|
Pinos Altos
Total
|
100%
|
-
|
-
|
-
|
13,988
|
1.62
|
730
|
13,988
|
1.62
|
730
|
9,225
|
1.28
|
380
|
Creston Mascota (open
pit)
|
100%
|
-
|
-
|
-
|
4,292
|
1.01
|
139
|
4,292
|
1.01
|
139
|
1,332
|
0.72
|
31
|
La India (open
pit)
|
100%
|
11,127
|
0.24
|
85
|
63,081
|
0.39
|
783
|
74,208
|
0.36
|
869
|
92,631
|
0.38
|
1,132
|
El Barqueno (open
pit)
|
100%
|
-
|
-
|
-
|
8,469
|
1.11
|
301
|
8,469
|
1.11
|
301
|
7,210
|
1.56
|
362
|
Total
|
|
110,598
|
0.82
|
2,933
|
222,497
|
1.88
|
13,446
|
333,095
|
1.53
|
16,378
|
221,119
|
2.23
|
15,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SILVER
|
OWNERSHIP
|
000 tonnes
|
g/t
|
000 oz Ag
|
000 tonnes
|
g/t
|
000 oz Ag
|
000 tonnes
|
g/t
|
000 oz Ag
|
000 tonnes
|
g/t
|
000 oz Ag
|
LaRonde
(underground)
|
100%
|
-
|
-
|
-
|
5,688
|
20.51
|
3,751
|
5,688
|
20.51
|
3,751
|
7,701
|
14.48
|
3,584
|
Kylmäkangas, Finland
(underground)
|
100%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,896
|
31.11
|
1,896
|
|
Pinos Altos (open
pit)
|
|
-
|
-
|
-
|
236
|
20.40
|
155
|
236
|
20.40
|
155
|
5,984
|
20.94
|
4,029
|
|
Pinos Altos
(underground)
|
|
-
|
-
|
-
|
13,751
|
40.57
|
17,935
|
13,751
|
40.57
|
17,935
|
3,241
|
41.87
|
4,363
|
Pinos Altos
Total
|
100%
|
-
|
-
|
-
|
13,988
|
40.22
|
18,090
|
13,988
|
40.22
|
18,090
|
9,225
|
28.30
|
8,392
|
Creston Mascota (open
pit)
|
100%
|
-
|
-
|
-
|
4,292
|
16.98
|
2,343
|
4,292
|
16.98
|
2,343
|
1,332
|
11.54
|
494
|
La India (open
pit)
|
100%
|
11,127
|
2.37
|
847
|
63,081
|
0.70
|
1,421
|
74,208
|
0.95
|
2,267
|
92,631
|
0.39
|
1,153
|
El Barqueno (open
pit)
|
100%
|
-
|
-
|
-
|
8,469
|
4.35
|
1,183
|
8,469
|
4.35
|
1,183
|
7,210
|
4.50
|
1,043
|
Total
|
|
-
|
-
|
847
|
-
|
-
|
26,787
|
-
|
-
|
27,634
|
-
|
-
|
16,561
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COPPER
|
OWNERSHIP
|
000 tonnes
|
%
|
tonnes Cu
|
000 tonnes
|
%
|
tonnes Cu
|
000 tonnes
|
%
|
tonnes Cu
|
000 tonnes
|
%
|
tonnes Cu
|
LaRonde
(underground)
|
100%
|
-
|
-
|
-
|
5,688
|
0.21
|
11,676
|
5,688
|
0.21
|
11,676
|
7,701
|
0.25
|
19,589
|
Akasaba West(open
pit)
|
100%
|
-
|
-
|
-
|
2,484
|
0.40
|
9,941
|
2,484
|
0.40
|
9,941
|
-
|
-
|
-
|
Upper Beaver
(underground)
|
50%
|
-
|
-
|
-
|
1,818
|
0.14
|
2,567
|
1,818
|
0.14
|
2,567
|
4,344
|
0.20
|
8,642
|
Total
|
|
-
|
-
|
-
|
-
|
-
|
24,184
|
-
|
-
|
24,184
|
-
|
-
|
28,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ZINC
|
OWNERSHIP
|
000 tonnes
|
%
|
tonnes Zn
|
000 tonnes
|
%
|
tonnes Zn
|
000 tonnes
|
%
|
tonnes Zn
|
000 tonnes
|
%
|
tonnes Zn
|
LaRonde
(underground)
|
100%
|
-
|
-
|
-
|
5,688
|
0.93
|
52,850
|
5,688
|
0.93
|
52,850
|
7,701
|
0.60
|
46,358
|
Total
|
|
-
|
-
|
-
|
-
|
-
|
52,850
|
-
|
-
|
52,850
|
-
|
-
|
46,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mineral reserves are
not a subset of mineral resources. Tonnage amounts and contained
metal amounts presented in this table have been rounded to the
nearest thousand, so aggregate amounts may differ from column
totals
|
Cautionary Note To U.S. Investors - The SEC permits U.S.
mining companies, in their filings with the SEC, to disclose only
those mineral deposits that a company can economically and legally
extract or produce. Agnico Eagle reports mineral reserve and
mineral resource estimates in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum Best Practice
Guidelines for Exploration and Best Practice Guidelines
for Estimation of Mineral Resources and Mineral
Reserves, in accordance with NI 43-101. These standards
are similar to those used by the SEC's Industry Guide No. 7, as
interpreted by Staff at the SEC ("Guide 7"). However, the
definitions in NI 43-101 differ in certain respects from those
under Guide 7. Accordingly, mineral reserve information
contained herein may not be comparable to similar information
disclosed by U.S. companies. Under the requirements of the
SEC, 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. A "final" or "bankable"
feasibility study is required to meet the requirements to designate
mineral reserves under Industry Guide 7. Agnico Eagle uses
certain terms in this news release, such as "measured",
"indicated", "inferred" and "resources" that the SEC guidelines
strictly prohibit U.S. registered companies from including in their
filings with the SEC.
In prior periods, mineral reserves for all properties were
typically estimated using historic three-year average metals prices
and foreign exchange rates in accordance with the SEC
guidelines. These guidelines require the use of prices that
reflect current economic conditions at the time of mineral reserve
determination, which the Staff of the SEC has interpreted to mean
historic three-year average prices. Given the current
commodity price environment, Agnico Eagle has decided to use price
assumptions that are below the three-year averages.
The assumptions used for the December
2016 mineral reserves estimate at all longer life mines and
advanced projects reported by the Company (other than the Meliadine
project, the Canadian Malartic mine and the Upper Beaver project)
were $1,150 per ounce gold,
$16.50 per ounce silver, $0.95 per pound zinc, $2.15 per pound copper and foreign exchange rates
of C$1.20 per $1.00, 16.00 Mexican pesos per $1.00 and $1.15 per
€1.00 for all mines and projects other than the Lapa and Meadowbank
mines in Canada, and the Creston
Mascota mine and Santo Niño pit at the Pinos Altos mine in Mexico; due to the shorter remaining mine life
for the Lapa and Meadowbank mines in Canada, and the Creston Mascota mine and Santo
Niño pit at the Pinos Altos mine
in Mexico, the foreign exchange
rates used were C$1.30 per
$1.00 and 16.00 Mexican pesos per
$1.00 (other assumptions
unchanged). At the Meliadine project, the same assumptions at
December 2015 were used to estimate
the December 2016 mineral reserves,
which were $1,100 per ounce gold and
an foreign exchange rate of C$1.16
per $1.00.
The Canadian Malartic General Partnership (the "Partnership"),
owned by Agnico Eagle (50%) and Yamana Gold Inc. ("Yamana") (50%),
which owns and operates the Canadian Malartic mine, and the
Canadian Malartic Corporation
("CMC"), owned by Agnico Eagle (50%) and Yamana (50%), which owns
and manages the Upper Beaver project in Kirkland Lake, have estimated the December 2016 mineral reserves of the Canadian
Malartic mine and the Upper Beaver project using the following
assumptions: $1,200 per ounce gold; a
cut-off grade at the Canadian Malartic mine between 0.33 g/t and
0.37 g/t gold (depending on the deposit); a C$125/tonne net smelter return (NSR) for the
Upper Beaver project; and an foreign exchange rate of C$1.25 per $1.00.
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 the 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 mineral projects that
is required by NI 43-101, sections 3.2 and 3.3 and paragraphs
3.4(a), (c) and (d) 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, Bousquet
&
Ellison, Quebec, Canada
|
March 23,
2005
|
Canadian Malartic,
Quebec, Canada
|
June 16,
2014
|
Kittila, Kuotko
and
Kylmakangas, Finland
|
March 4,
2010
|
Meadowbank,
Nunavut,
Canada
|
February 15,
2012
|
Goldex, Quebec,
Canada
|
October 14,
2012
|
Lapa, Quebec,
Canada
|
June 8,
2006
|
Meliadine,
Nunavut,
Canada
|
February 11,
2015
|
Hammond Reef,
Ontario, Canada
|
July 2,
2013
|
Upper Beaver
(Kirkland Lake property), Ontario, Canada
|
November 5,
2012
|
Pinos Altos and
Creston Mascota, Mexico
|
March 25,
2009
|
La India,
Mexico
|
August 31,
2012
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Operating
margin(i)by mine:
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
44,058
|
|
$
|
50,667
|
|
$
|
208,684
|
|
$
|
145,924
|
|
Lapa mine
|
3,762
|
|
12,363
|
|
39,186
|
|
52,214
|
|
Goldex
mine
|
13,506
|
|
17,108
|
|
86,420
|
|
72,567
|
|
Meadowbank
mine
|
50,807
|
|
64,664
|
|
165,060
|
|
216,334
|
|
Canadian Malartic
mine(ii)
|
40,430
|
|
38,059
|
|
188,285
|
|
161,807
|
|
Kittila
mine
|
27,596
|
|
15,174
|
|
110,475
|
|
80,262
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
34,909
|
|
29,327
|
|
179,820
|
|
145,734
|
|
Creston Mascota
deposit at Pinos Altos
|
6,470
|
|
9,919
|
|
35,626
|
|
40,194
|
|
La India
mine
|
22,560
|
|
15,832
|
|
92,784
|
|
75,101
|
Total operating
margin(i)
|
244,098
|
|
253,113
|
|
1,106,340
|
|
990,137
|
Gain on impairment
reversal
|
(120,161)
|
|
—
|
|
(120,161)
|
|
—
|
Amortization of
property, plant and mine development
|
151,399
|
|
157,129
|
|
613,160
|
|
608,609
|
Exploration,
corporate and other
|
97,447
|
|
76,963
|
|
344,880
|
|
298,900
|
Income before income
and mining taxes
|
115,413
|
|
19,021
|
|
268,461
|
|
82,628
|
Income and mining
taxes
|
52,759
|
|
34,558
|
|
109,637
|
|
58,045
|
Net income (loss) for
the period
|
$
|
62,654
|
|
$
|
(15,537)
|
|
$
|
158,824
|
|
$
|
24,583
|
Net income (loss) per
share — basic (US$)
|
$
|
0.28
|
|
$
|
(0.07)
|
|
$
|
0.71
|
|
$
|
0.11
|
Net income (loss) per
share — diluted (US$)
|
$
|
0.28
|
|
$
|
(0.07)
|
|
$
|
0.70
|
|
$
|
0.11
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
|
120,601
|
|
$
|
140,747
|
|
$
|
778,617
|
|
$
|
616,238
|
Cash used in
investing activities
|
$
|
(180,543)
|
|
$
|
(115,786)
|
|
$
|
(553,490)
|
|
$
|
(374,519)
|
Cash (used in)
provided by financing activities
|
$
|
(19,360)
|
|
$
|
(100,460)
|
|
$
|
190,386
|
|
$
|
(280,760)
|
Realized prices
(US$):
|
|
|
|
|
|
|
|
Gold (per
ounce)
|
$
|
1,196
|
|
$
|
1,094
|
|
$
|
1,249
|
|
$
|
1,156
|
Silver (per
ounce)
|
$
|
16.76
|
|
$
|
14.56
|
|
$
|
17.28
|
|
$
|
15.63
|
Zinc (per
tonne)
|
$
|
2,346
|
|
$
|
1,602
|
|
$
|
2,047
|
|
$
|
1,875
|
Copper (per
tonne)
|
$
|
5,578
|
|
$
|
4,568
|
|
$
|
4,827
|
|
$
|
5,023
|
Payable
production(iii):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
83,508
|
|
73,161
|
|
305,788
|
|
267,921
|
|
Lapa mine
|
14,065
|
|
19,929
|
|
73,930
|
|
90,967
|
|
Goldex
mine
|
24,170
|
|
27,646
|
|
120,704
|
|
115,426
|
|
Meadowbank
mine
|
94,770
|
|
102,580
|
|
312,214
|
|
381,804
|
|
Canadian Malartic
mine(ii)
|
69,971
|
|
72,872
|
|
292,514
|
|
285,809
|
|
Kittila
mine
|
53,337
|
|
44,279
|
|
202,508
|
|
177,374
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
46,685
|
|
44,496
|
|
192,772
|
|
192,974
|
|
Creston Mascota
deposit at Pinos Altos
|
11,213
|
|
13,933
|
|
47,296
|
|
54,703
|
|
La India
mine
|
28,714
|
|
23,432
|
|
115,162
|
|
104,362
|
Total gold
(ounces)
|
426,433
|
|
422,328
|
|
1,662,888
|
|
1,671,340
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
272
|
|
296
|
|
988
|
|
916
|
|
Lapa mine
|
1
|
|
1
|
|
5
|
|
4
|
|
Goldex
mine
|
—
|
|
—
|
|
1
|
|
—
|
|
Meadowbank
mine
|
54
|
|
29
|
|
221
|
|
221
|
|
Canadian Malartic
mine(ii)
|
80
|
|
83
|
|
340
|
|
300
|
|
Kittila
mine
|
3
|
|
4
|
|
12
|
|
11
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
642
|
|
640
|
|
2,505
|
|
2,384
|
|
Creston Mascota
deposit at Pinos Altos
|
49
|
|
50
|
|
201
|
|
159
|
|
La India
mine
|
138
|
|
55
|
|
486
|
|
263
|
Total silver
(thousands of ounces)
|
1,239
|
|
1,158
|
|
4,759
|
|
4,258
|
Zinc
(tonnes)
|
1,745
|
|
999
|
|
4,687
|
|
3,501
|
Copper
(tonnes)
|
944
|
|
1,335
|
|
4,416
|
|
4,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payable metal
sold:
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
67,803
|
|
65,067
|
|
293,161
|
|
254,529
|
|
Lapa mine
|
14,621
|
|
23,278
|
|
74,219
|
|
90,877
|
|
Goldex
mine
|
24,059
|
|
27,875
|
|
119,894
|
|
116,092
|
|
Meadowbank
mine
|
85,318
|
|
103,667
|
|
305,638
|
|
385,757
|
|
Canadian Malartic
mine(ii)(iv)
|
67,900
|
|
71,982
|
|
278,194
|
|
271,416
|
|
Kittila
mine
|
51,687
|
|
43,499
|
|
202,702
|
|
178,936
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
43,410
|
|
41,418
|
|
199,462
|
|
186,580
|
|
Creston Mascota
deposit at Pinos Altos
|
11,695
|
|
14,997
|
|
48,312
|
|
55,844
|
|
La India
mine
|
29,320
|
|
25,366
|
|
109,283
|
|
105,050
|
Total gold
(ounces)
|
395,813
|
|
417,149
|
|
1,630,865
|
|
1,645,081
|
Silver (thousands of
ounces):
|
|
|
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
257
|
|
308
|
|
981
|
|
958
|
|
Lapa mine
|
1
|
|
—
|
|
2
|
|
—
|
|
Goldex
mine
|
—
|
|
—
|
|
1
|
|
—
|
|
Meadowbank
mine
|
59
|
|
32
|
|
222
|
|
225
|
|
Canadian Malartic
mine(ii)(iv)
|
76
|
|
98
|
|
312
|
|
285
|
|
Kittila
mine
|
3
|
|
3
|
|
11
|
|
10
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
598
|
|
607
|
|
2,587
|
|
2,289
|
|
Creston Mascota
deposit at Pinos Altos
|
59
|
|
49
|
|
193
|
|
156
|
|
La India
mine
|
151
|
|
56
|
|
452
|
|
261
|
Total silver
(thousands of ounces)
|
1,204
|
|
1,153
|
|
4,761
|
|
4,184
|
Zinc
(tonnes)
|
902
|
|
949
|
|
3,554
|
|
3,596
|
Copper
(tonnes)
|
1,001
|
|
1,354
|
|
4,522
|
|
4,947
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced - co-product basis
(US$)(v):
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
589
|
|
$
|
668
|
|
$
|
668
|
|
$
|
760
|
|
Lapa mine
|
935
|
|
622
|
|
732
|
|
591
|
|
Goldex
mine
|
657
|
|
513
|
|
532
|
|
538
|
|
Meadowbank
mine
|
589
|
|
530
|
|
727
|
|
623
|
|
Canadian Malartic
mine(ii)
|
655
|
|
623
|
|
626
|
|
613
|
|
Kittila
mine
|
665
|
|
748
|
|
700
|
|
710
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
616
|
|
623
|
|
585
|
|
578
|
|
Creston Mascota
deposit at Pinos Altos
|
708
|
|
496
|
|
588
|
|
474
|
|
La India
mine
|
515
|
|
518
|
|
468
|
|
475
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
626
|
|
$
|
604
|
|
$
|
643
|
|
$
|
626
|
|
|
|
|
|
|
|
|
Total cash costs
per ounce of gold produced - by-product basis
(US$)(v):
|
|
|
|
|
Northern
Business
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
|
405
|
|
$
|
510
|
|
$
|
501
|
|
$
|
590
|
|
Lapa mine
|
935
|
|
620
|
|
732
|
|
590
|
|
Goldex
mine
|
657
|
|
513
|
|
532
|
|
538
|
|
Meadowbank
mine
|
579
|
|
526
|
|
715
|
|
613
|
|
Canadian Malartic
mine(ii)
|
634
|
|
606
|
|
606
|
|
596
|
|
Kittila
mine
|
664
|
|
747
|
|
699
|
|
709
|
Southern
Business
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
390
|
|
417
|
|
356
|
|
387
|
|
Creston Mascota
deposit at Pinos Altos
|
649
|
|
445
|
|
516
|
|
430
|
|
La India
mine
|
437
|
|
485
|
|
395
|
|
436
|
Weighted average
total cash costs per ounce of gold produced
|
$
|
552
|
|
$
|
547
|
|
$
|
573
|
|
$
|
567
|
Notes:
|
|
|
|
(i)
|
Operating margin is
calculated as revenues from mining operations less production
costs.
|
|
|
(ii)
|
On June 16,
2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by
way of a statutory plan of arrangement (the "Arrangement"). As a
result of the Arrangement, Agnico Eagle and Yamana each indirectly
own 50.0% of CMC and the Partnership, which now holds the Canadian
Malartic mine. The information set out in this table reflects the
Company's 50.0% 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.
|
|
|
(iv)
|
The Canadian Malartic
mine's payable metal sold excludes the 5.0% net smelter royalty
transferred to Osisko Gold Royalties Ltd., pursuant to
the Arrangement.
|
|
|
(v)
|
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. 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 (before by‑product
metal revenues). 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 metal revenues, unsold concentrate inventory production
costs, smelting, refining and marketing charges and other
adjustments, and then dividing by the number of ounces of gold
produced. Total cash costs per ounce of gold produced on a
co‑product basis is calculated in the same manner as total cash
costs per ounce of gold produced on a by‑product basis except that
no adjustment for by‑product metal revenues is made. 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 Company believes that
these generally accepted industry measures provide a realistic
indication of operating performance and provide useful comparison
points between periods. 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 these measures 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. Management is
aware that these per ounce measures of performance can be affected
by fluctuations in exchange rates and, in the case of total cash
costs 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
as well as other data prepared in accordance with IFRS. Management
also performs sensitivity analyses in order to quantify the effects
of fluctuating metal prices and exchange rates.
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
(thousands of
United States dollars, except share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
As at December 31,
2016
|
|
As at December 31,
2015
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
|
539,974
|
|
$
|
124,150
|
|
Short-term
investments
|
8,424
|
|
7,444
|
|
Restricted
cash
|
398
|
|
685
|
|
Trade
receivables
|
8,185
|
|
7,714
|
|
Inventories
|
443,714
|
|
461,976
|
|
Income taxes
recoverable
|
—
|
|
817
|
|
Available-for-sale
securities
|
92,310
|
|
31,863
|
|
Fair value of
derivative financial instruments
|
364
|
|
87
|
|
Other current
assets
|
136,810
|
|
194,689
|
Total current
assets
|
1,230,179
|
|
829,425
|
Non-current
assets:
|
|
|
|
|
Restricted
cash
|
764
|
|
741
|
|
Goodwill
|
696,809
|
|
696,809
|
|
Property, plant and
mine development
|
5,106,036
|
|
5,088,967
|
|
Other
assets
|
74,163
|
|
67,238
|
Total
assets
|
$
|
7,107,951
|
|
$
|
6,683,180
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
228,566
|
|
$
|
243,786
|
|
Reclamation
provision
|
9,193
|
|
6,245
|
|
Interest
payable
|
14,242
|
|
14,526
|
|
Income taxes
payable
|
35,070
|
|
14,852
|
|
Finance lease
obligations
|
5,535
|
|
9,589
|
|
Current portion of
long-term debt
|
129,896
|
|
14,451
|
|
Fair value of
derivative financial instruments
|
1,120
|
|
8,073
|
Total current
liabilities
|
423,622
|
|
311,522
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
1,072,790
|
|
1,118,187
|
|
Reclamation
provision
|
265,308
|
|
276,299
|
|
Deferred income and
mining tax liabilities
|
819,562
|
|
802,114
|
|
Other
liabilities
|
34,195
|
|
34,038
|
Total
liabilities
|
2,615,477
|
|
2,542,160
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
|
Outstanding —
225,465,654 common shares issued, less 500,514 shares held in
trust
|
4,987,694
|
|
4,707,940
|
|
Stock
options
|
179,852
|
|
216,232
|
|
Contributed
surplus
|
37,254
|
|
37,254
|
|
Deficit
|
(744,453)
|
|
(823,734)
|
|
Accumulated other
comprehensive income
|
32,127
|
|
3,328
|
Total
equity
|
4,492,474
|
|
4,141,020
|
Total liabilities and
equity
|
$
|
7,107,951
|
|
$
|
6,683,180
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
|
(thousands of
United States dollars, IFRS basis, except per share
amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$ 499,210
|
|
$ 482,932
|
|
$
2,138,232
|
|
$
1,985,432
|
|
|
|
|
|
|
|
|
COSTS, EXPENSES
AND OTHER INCOME
|
|
|
|
|
|
|
|
Production(i)
|
255,112
|
|
229,819
|
|
1,031,892
|
|
995,295
|
Exploration and
corporate development
|
35,846
|
|
26,001
|
|
146,978
|
|
110,353
|
Amortization of
property, plant and mine development
|
151,399
|
|
157,129
|
|
613,160
|
|
608,609
|
General and
administrative
|
32,147
|
|
22,505
|
|
102,781
|
|
96,973
|
Impairment loss on
available-for-sale securities
|
—
|
|
3,929
|
|
—
|
|
12,035
|
Finance
costs
|
19,795
|
|
17,887
|
|
74,641
|
|
75,228
|
(Gain) loss on
derivative financial instruments
|
(9)
|
|
3,318
|
|
(9,468)
|
|
19,608
|
Gain on sale of
available-for-sale securities
|
—
|
|
(1)
|
|
(3,500)
|
|
(24,600)
|
Environmental
remediation
|
(1,597)
|
|
1,666
|
|
4,058
|
|
2,003
|
Gain on impairment
reversal
|
(120,161)
|
|
—
|
|
(120,161)
|
|
—
|
Foreign currency
translation (gain) loss
|
(1,661)
|
|
1,281
|
|
13,157
|
|
(4,728)
|
Other
expenses
|
12,926
|
|
377
|
|
16,233
|
|
12,028
|
Income before income
and mining taxes
|
115,413
|
|
19,021
|
|
268,461
|
|
82,628
|
Income and mining
taxes expense
|
52,759
|
|
34,558
|
|
109,637
|
|
58,045
|
Net income (loss) for
the period
|
$
62,654
|
|
$ (15,537)
|
|
$
158,824
|
|
$
24,583
|
|
|
|
|
|
|
|
|
Net income (loss) per
share - basic
|
$
0.28
|
|
$
(0.07)
|
|
$
0.71
|
|
$
0.11
|
Net income (loss) per
share - diluted
|
$
0.28
|
|
$
(0.07)
|
|
$
0.70
|
|
$
0.11
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
224,785
|
|
217,484
|
|
222,737
|
|
216,168
|
Diluted
|
227,444
|
|
218,602
|
|
225,754
|
|
217,101
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i)Exclusive of amortization, which is
shown separately.
|
|
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
$
62,654
|
|
$
(15,537)
|
|
$
158,824
|
|
$
24,583
|
Add (deduct) items
not affecting cash:
|
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
151,399
|
|
157,129
|
|
613,160
|
|
608,609
|
|
Deferred income and
mining taxes
|
9,678
|
|
(36,853)
|
|
7,609
|
|
6,550
|
|
Gain on sale of
available-for-sale securities
|
—
|
|
(1)
|
|
(3,500)
|
|
(24,600)
|
|
Stock-based
compensation
|
8,731
|
|
7,045
|
|
33,804
|
|
35,822
|
|
Impairment loss on
available-for-sale securities
|
—
|
|
3,929
|
|
—
|
|
12,035
|
|
Gain on impairment
reversal
|
(120,161)
|
|
—
|
|
(120,161)
|
|
—
|
|
Foreign currency
translation (gain) loss
|
(1,661)
|
|
1,281
|
|
13,157
|
|
(4,728)
|
|
Other
|
10,413
|
|
(3,862)
|
|
14,012
|
|
3,145
|
Adjustment for
settlement of reclamation provision
|
(788)
|
|
(533)
|
|
(2,719)
|
|
(1,385)
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
|
Trade
receivables
|
(286)
|
|
(1,815)
|
|
(471)
|
|
52,019
|
|
Income
taxes
|
26,433
|
|
64,315
|
|
28,082
|
|
(2,333)
|
|
Inventories
|
(12)
|
|
8,928
|
|
20,355
|
|
(40,547)
|
|
Other current
assets
|
32,583
|
|
(25,322)
|
|
53,009
|
|
(74,106)
|
|
Accounts payable and
accrued liabilities
|
(46,950)
|
|
(11,348)
|
|
(35,408)
|
|
20,464
|
|
Interest
payable
|
(11,432)
|
|
(6,609)
|
|
(1,136)
|
|
710
|
Cash provided by
operating activities
|
120,601
|
|
140,747
|
|
778,617
|
|
616,238
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to
property, plant and mine development
|
(166,567)
|
|
(132,958)
|
|
(516,050)
|
|
(449,758)
|
Acquisitions, net of
cash and cash equivalents acquired
|
—
|
|
—
|
|
(12,434)
|
|
(12,983)
|
Net sales (purchases)
of short-term investments
|
378
|
|
(1,300)
|
|
(980)
|
|
(2,823)
|
Net proceeds from
sale of available-for-sale securities and other
investments
|
—
|
|
40
|
|
9,461
|
|
61,075
|
Purchases of
available-for-sale securities and other investments
|
(14,408)
|
|
(382)
|
|
(33,774)
|
|
(19,815)
|
Decrease in
restricted cash
|
54
|
|
18,814
|
|
287
|
|
49,785
|
Cash used in
investing activities
|
(180,543)
|
|
(115,786)
|
|
(553,490)
|
|
(374,519)
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Dividends
paid
|
(20,281)
|
|
(14,940)
|
|
(71,375)
|
|
(59,512)
|
Repayment of finance
lease obligations
|
(2,375)
|
|
(6,122)
|
|
(10,004)
|
|
(23,657)
|
Proceeds from
long-term debt
|
—
|
|
111,000
|
|
125,000
|
|
436,000
|
Repayment of
long-term debt
|
—
|
|
(196,000)
|
|
(405,374)
|
|
(697,086)
|
Notes
issuance
|
—
|
|
—
|
|
350,000
|
|
50,000
|
Long-term debt
financing
|
(920)
|
|
(196)
|
|
(3,415)
|
|
(1,689)
|
Repurchase of common
shares for stock-based compensation plans
|
(34)
|
|
—
|
|
(15,576)
|
|
(11,899)
|
Proceeds on exercise
of stock options
|
1,552
|
|
3,662
|
|
192,103
|
|
17,672
|
Common shares
issued
|
2,698
|
|
2,136
|
|
29,027
|
|
9,411
|
Cash (used in)
provided by financing activities
|
(19,360)
|
|
(100,460)
|
|
190,386
|
|
(280,760)
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
715
|
|
(2,315)
|
|
311
|
|
(14,346)
|
Net (decrease)
increase in cash and cash equivalents during the
period
|
(78,587)
|
|
(77,814)
|
|
415,824
|
|
(53,387)
|
Cash and cash
equivalents, beginning of period
|
618,561
|
|
201,964
|
|
124,150
|
|
177,537
|
Cash and cash
equivalents, end of period
|
$
539,974
|
|
$
124,150
|
|
$
539,974
|
|
$
124,150
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
31,353
|
|
$
23,158
|
|
$
71,401
|
|
$
69,414
|
Income and mining
taxes paid
|
$
20,681
|
|
$
33,756
|
|
$
105,184
|
|
$
81,112
|
AGNICO EAGLE MINES LIMITED
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE
MEASURES
(thousands of United States dollars, except where
noted)
(Unaudited)
Total Production
Costs by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
(thousands of
United States dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
|
|
$
44,056
|
|
$
32,041
|
|
$
179,496
|
|
$
172,283
|
Lapa mine
|
|
13,233
|
|
12,652
|
|
52,974
|
|
52,571
|
Goldex
mine
|
|
15,284
|
|
13,378
|
|
63,310
|
|
61,278
|
Meadowbank
mine
|
|
52,246
|
|
49,177
|
|
218,963
|
|
230,564
|
Canadian Malartic
mine(i)
|
|
46,930
|
|
46,093
|
|
183,635
|
|
171,473
|
Kittila
mine
|
|
34,352
|
|
32,203
|
|
141,871
|
|
126,095
|
Pinos Altos
mine
|
|
26,450
|
|
24,351
|
|
114,557
|
|
105,175
|
Creston Mascota
deposit at Pinos Altos
|
|
7,923
|
|
7,070
|
|
27,341
|
|
26,278
|
La India
mine
|
|
14,638
|
|
12,854
|
|
49,745
|
|
49,578
|
Production costs per
the consolidated statements of income (loss)
|
|
$
255,112
|
|
$
229,819
|
|
$
1,031,892
|
|
$
995,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Per Ounce of Gold Produced Metrics(ii) by Mine
and Reconciliation of Production Costs to Per Tonne Metrics(iii) by
Mine
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
83,508
|
|
|
73,161
|
|
|
305,788
|
|
|
267,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
44,056
|
$
528
|
|
$
32,041
|
$
438
|
|
$
179,496
|
$
587
|
|
$
172,283
|
$
643
|
Inventory and other
adjustments(iv)
|
|
5,171
|
61
|
|
16,847
|
230
|
|
24,914
|
81
|
|
31,417
|
117
|
Cash operating costs
(co-product basis)
|
|
$
49,227
|
$
589
|
|
$
48,888
|
$
668
|
|
$
204,410
|
$
668
|
|
$
203,700
|
$
760
|
By-product metal
revenues
|
|
(15,403)
|
(184)
|
|
(11,553)
|
(158)
|
|
(51,136)
|
(167)
|
|
(45,678)
|
(170)
|
Cash operating costs
(by-product basis)
|
|
$
33,824
|
$
405
|
|
$
37,335
|
$
510
|
|
$
153,274
|
$
501
|
|
$
158,022
|
$
590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
572
|
|
|
563
|
|
|
2,240
|
|
|
2,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
44,056
|
$
77
|
|
$
32,041
|
$
57
|
|
$
179,496
|
$
80
|
|
$
172,283
|
$
77
|
Production costs
(C$)
|
|
C$
57,302
|
C$
100
|
|
C$
49,807
|
C$
88
|
|
C$
237,934
|
C$
106
|
|
C$
218,649
|
C$
98
|
Inventory and other
adjustments (C$)(v)
|
|
(517)
|
(1)
|
|
3,312
|
6
|
|
(1,447)
|
-
|
|
4,150
|
1
|
Minesite operating
costs (C$)
|
|
C$
56,785
|
C$
99
|
|
C$
53,119
|
C$
94
|
|
C$
236,487
|
C$
106
|
|
C$
222,799
|
C$
99
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
14,065
|
|
|
19,929
|
|
|
73,930
|
|
|
90,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
13,233
|
$
941
|
|
$
12,652
|
$
635
|
|
$
52,974
|
$
717
|
|
$
52,571
|
$
578
|
Inventory and other
adjustments(iv)
|
|
(82)
|
(6)
|
|
(247)
|
(13)
|
|
1,173
|
15
|
|
1,161
|
13
|
Cash operating costs
(co-product basis)
|
|
$
13,151
|
$
935
|
|
$
12,405
|
$
622
|
|
$
54,147
|
$
732
|
|
$
53,732
|
$
591
|
By-product metal
revenues
|
|
(6)
|
-
|
|
(42)
|
(2)
|
|
(28)
|
-
|
|
(62)
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
13,145
|
$
935
|
|
$
12,363
|
$
620
|
|
$
54,119
|
$
732
|
|
$
53,670
|
$
590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lapa
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
130
|
|
|
136
|
|
|
593
|
|
|
560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
13,233
|
$
102
|
|
$
12,652
|
$
93
|
|
$
52,974
|
$
89
|
|
$
52,571
|
$
94
|
Production costs
(C$)
|
|
C$
17,335
|
C$
133
|
|
C$
16,707
|
C$
123
|
|
C$
69,941
|
C$
118
|
|
C$
66,396
|
C$
119
|
Inventory and other
adjustments (C$)(v)
|
|
198
|
2
|
|
(1,631)
|
(12)
|
|
1,580
|
3
|
|
(710)
|
(2)
|
Minesite operating
costs (C$)
|
|
C$
17,533
|
C$
135
|
|
C$
15,076
|
C$
111
|
|
C$
71,521
|
C$
121
|
|
C$
65,686
|
C$
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
24,170
|
|
|
27,646
|
|
|
120,704
|
|
|
115,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
15,284
|
$
632
|
|
$
13,378
|
$
484
|
|
$
63,310
|
$
525
|
|
$
61,278
|
$
531
|
Inventory and other
adjustments(iv)
|
|
598
|
25
|
|
812
|
29
|
|
912
|
7
|
|
878
|
7
|
Cash operating costs
(co-product basis)
|
|
$
15,882
|
$
657
|
|
$
14,190
|
$
513
|
|
$
64,222
|
$
532
|
|
$
62,156
|
$
538
|
By-product metal
revenues
|
|
(5)
|
-
|
|
(8)
|
-
|
|
(26)
|
-
|
|
(23)
|
-
|
Cash operating costs
(by-product basis)
|
|
$
15,877
|
$
657
|
|
$
14,182
|
$
513
|
|
$
64,196
|
$
532
|
|
$
62,133
|
$
538
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
580
|
|
|
572
|
|
|
2,545
|
|
|
2,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
15,284
|
$
26
|
|
$
13,378
|
$
23
|
|
$
63,310
|
$
25
|
|
$
61,278
|
$
26
|
Production costs
(C$)
|
|
C$
20,379
|
C$
35
|
|
C$
17,802
|
C$
31
|
|
C$
83,835
|
C$
33
|
|
C$
77,589
|
C$
34
|
Inventory and other
adjustments (C$)(v)
|
|
896
|
2
|
|
(197)
|
-
|
|
1,231
|
-
|
|
(1,181)
|
(1)
|
Minesite operating
costs (C$)
|
|
C$
21,275
|
C$
37
|
|
C$
17,605
|
C$
31
|
|
C$
85,066
|
C$
33
|
|
C$
76,408
|
C$
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
94,770
|
|
|
102,580
|
|
|
312,214
|
|
|
381,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
52,246
|
$
551
|
|
$
49,177
|
$
479
|
|
$
218,963
|
$
701
|
|
$
230,564
|
$
604
|
Inventory and other
adjustments(iv)
|
|
3,608
|
38
|
|
5,194
|
51
|
|
8,105
|
26
|
|
7,282
|
19
|
Cash operating costs
(co-product basis)
|
|
$
55,854
|
$
589
|
|
$
54,371
|
$
530
|
|
$
227,068
|
$
727
|
|
$
237,846
|
$
623
|
By-product metal
revenues
|
|
(1,021)
|
(10)
|
|
(455)
|
(4)
|
|
(3,837)
|
(12)
|
|
(3,665)
|
(10)
|
Cash operating costs
(by-product basis)
|
|
$
54,833
|
$
579
|
|
$
53,916
|
$
526
|
|
$
223,231
|
$
715
|
|
$
234,181
|
$
613
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
1,015
|
|
|
1,028
|
|
|
3,915
|
|
|
4,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
52,246
|
$
51
|
|
$
49,177
|
$
48
|
|
$
218,963
|
$
56
|
|
$
230,564
|
$
57
|
Production costs
(C$)
|
|
C$
67,309
|
C$
66
|
|
C$
64,289
|
C$
63
|
|
C$
284,748
|
C$
73
|
|
C$
285,023
|
C$
71
|
Inventory and other
adjustments (C$)(v)
|
|
5,371
|
6
|
|
(775)
|
(1)
|
|
5,681
|
1
|
|
(4,073)
|
(1)
|
Minesite operating
costs (C$)
|
|
C$
72,680
|
C$
72
|
|
C$
63,514
|
C$
62
|
|
C$
290,429
|
C$
74
|
|
C$
280,950
|
C$
70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine(i)
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
69,971
|
|
|
72,872
|
|
|
292,514
|
|
|
285,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
46,930
|
$
671
|
|
$
46,093
|
$
633
|
|
$
183,635
|
$
628
|
|
$
171,473
|
$
600
|
Inventory and other
adjustments(iv)
|
|
(1,116)
|
(16)
|
|
(705)
|
(10)
|
|
(553)
|
(2)
|
|
3,630
|
13
|
Cash operating costs
(co-product basis)
|
|
$
45,814
|
$
655
|
|
$
45,388
|
$
623
|
|
$
183,082
|
$
626
|
|
$
175,103
|
$
613
|
By-product metal
revenues
|
|
(1,468)
|
(21)
|
|
(1,236)
|
(17)
|
|
(5,821)
|
(20)
|
|
(4,689)
|
(17)
|
Cash operating costs
(by-product basis)
|
|
$
44,346
|
$
634
|
|
$
44,152
|
$
606
|
|
$
177,261
|
$
606
|
|
$
170,414
|
$
596
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
Mine(i)
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
2,433
|
|
|
2,428
|
|
|
9,821
|
|
|
9,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
46,930
|
$
19
|
|
$
46,093
|
$
19
|
|
$
183,635
|
$
19
|
|
$
171,473
|
$
18
|
Production costs
(C$)
|
|
C$
66,395
|
C$
27
|
|
C$
61,602
|
C$
25
|
|
C$
244,333
|
C$
25
|
|
C$
219,346
|
C$
23
|
Inventory and other
adjustments (C$)(v)
|
|
(5,747)
|
(2)
|
|
(2,024)
|
-
|
|
(3,399)
|
-
|
|
368
|
-
|
Minesite operating
costs (C$)
|
|
C$
60,648
|
C$
25
|
|
C$
59,578
|
C$
25
|
|
C$
240,934
|
C$
25
|
|
C$
219,714
|
C$
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
53,337
|
|
|
44,279
|
|
|
202,508
|
|
|
177,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
34,352
|
$
644
|
|
$
32,203
|
$
727
|
|
$
141,871
|
$
701
|
|
$
126,095
|
$
711
|
Inventory and other
adjustments(iv)
|
|
1,101
|
21
|
|
901
|
21
|
|
(26)
|
(1)
|
|
(187)
|
(1)
|
Cash operating costs
(co-product basis)
|
|
$
35,453
|
$
665
|
|
$
33,104
|
$
748
|
|
$
141,845
|
$
700
|
|
$
125,908
|
$
710
|
By-product metal
revenues
|
|
(59)
|
(1)
|
|
(39)
|
(1)
|
|
(200)
|
(1)
|
|
(155)
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
35,394
|
$
664
|
|
$
33,065
|
$
747
|
|
$
141,645
|
$
699
|
|
$
125,753
|
$
709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
401
|
|
|
377
|
|
|
1,667
|
|
|
1,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
34,352
|
$
86
|
|
$
32,203
|
$
85
|
|
$
141,871
|
$
85
|
|
$
126,095
|
$
86
|
Production costs
(€)
|
|
€
32,221
|
€
80
|
|
€
29,176
|
€
77
|
|
€
128,599
|
€
77
|
|
€
112,285
|
€
77
|
Inventory and other
adjustments (€)(v)
|
|
1,011
|
3
|
|
984
|
3
|
|
(505)
|
-
|
|
(956)
|
(1)
|
Minesite operating
costs (€)
|
|
€
33,232
|
€
83
|
|
€
30,160
|
€
80
|
|
€
128,094
|
€
77
|
|
€
111,329
|
€
76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
46,685
|
|
|
44,496
|
|
|
192,772
|
|
|
192,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
26,450
|
$
567
|
|
$
24,351
|
$
547
|
|
$
114,557
|
$
594
|
|
$
105,175
|
$
545
|
Inventory and other
adjustments(iv)
|
|
2,285
|
49
|
|
3,374
|
76
|
|
(1,840)
|
(9)
|
|
6,458
|
33
|
Cash operating costs
(co-product basis)
|
|
$
28,735
|
$
616
|
|
$
27,725
|
$
623
|
|
$
112,717
|
$
585
|
|
$
111,633
|
$
578
|
By-product metal
revenues
|
|
(10,532)
|
(226)
|
|
(9,188)
|
(206)
|
|
(44,118)
|
(229)
|
|
(37,030)
|
(191)
|
Cash operating costs
(by-product basis)
|
|
$
18,203
|
$
390
|
|
$
18,537
|
$
417
|
|
$
68,599
|
$
356
|
|
$
74,603
|
$
387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
556
|
|
|
600
|
|
|
2,260
|
|
|
2,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
26,450
|
$
48
|
|
$
24,351
|
$
41
|
|
$
114,557
|
$
51
|
|
$
105,175
|
$
44
|
Inventory and other
adjustments(v)
|
|
1,728
|
3
|
|
2,031
|
3
|
|
(3,698)
|
(2)
|
|
2,481
|
1
|
Minesite operating
costs
|
|
$
28,178
|
$
51
|
|
$
26,382
|
$
44
|
|
$
110,859
|
$
49
|
|
$
107,656
|
$
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
deposit at Pinos Altos
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
11,213
|
|
|
13,933
|
|
|
47,296
|
|
|
54,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
7,923
|
$
707
|
|
$
7,070
|
$
507
|
|
$
27,341
|
$
578
|
|
$
26,278
|
$
480
|
Inventory and other
adjustments(iv)
|
|
15
|
1
|
|
(156)
|
(11)
|
|
472
|
10
|
|
(328)
|
(6)
|
Cash operating costs
(co-product basis)
|
|
$
7,938
|
$
708
|
|
$
6,914
|
$
496
|
|
$
27,813
|
$
588
|
|
$
25,950
|
$
474
|
By-product metal
revenues
|
|
(657)
|
(59)
|
|
(720)
|
(51)
|
|
(3,426)
|
(72)
|
|
(2,412)
|
(44)
|
Cash operating costs
(by-product basis)
|
|
$
7,281
|
$
649
|
|
$
6,194
|
$
445
|
|
$
24,387
|
$
516
|
|
$
23,538
|
$
430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
deposit at Pinos Altos
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
524
|
|
|
529
|
|
|
2,119
|
|
|
2,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
7,923
|
$
15
|
|
$
7,070
|
$
13
|
|
$
27,341
|
$
13
|
|
$
26,278
|
$
13
|
Inventory and other
adjustments(v)
|
|
(191)
|
-
|
|
(328)
|
-
|
|
(77)
|
-
|
|
(757)
|
(1)
|
Minesite operating
costs
|
|
$
7,732
|
$
15
|
|
$
6,742
|
$
13
|
|
$
27,264
|
$
13
|
|
$
25,521
|
$
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Ounce of Gold
Produced Metrics(ii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
|
(thousands)
|
($ per ounce
)
|
Gold production
(ounces)
|
|
|
28,714
|
|
|
23,432
|
|
|
115,162
|
|
|
104,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
14,638
|
$
510
|
|
$
12,854
|
$
549
|
|
$
49,745
|
$
432
|
|
$
49,578
|
$
475
|
Inventory and other
adjustments(iv)
|
|
142
|
5
|
|
(725)
|
(31)
|
|
4,189
|
36
|
|
(28)
|
-
|
Cash operating costs
(co-product basis)
|
|
$
14,780
|
$
515
|
|
$
12,129
|
$
518
|
|
$
53,934
|
$
468
|
|
$
49,550
|
$
475
|
By-product metal
revenues
|
|
(2,224)
|
(78)
|
|
(772)
|
(33)
|
|
(8,453)
|
(73)
|
|
(4,058)
|
(39)
|
Cash operating costs
(by-product basis)
|
|
$
12,556
|
$
437
|
|
$
11,357
|
$
485
|
|
$
45,481
|
$
395
|
|
$
45,492
|
$
436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
Mine
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
Per Tonne
Metrics(iii)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
|
(thousands)
|
($ per tonne
)
|
Tonnes of ore
processed (thousands of tonnes)
|
|
|
1,540
|
|
|
1,439
|
|
|
5,837
|
|
|
5,371
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
$
14,638
|
$
10
|
|
$
12,854
|
$
9
|
|
$
49,745
|
$
9
|
|
$
49,578
|
$
9
|
Inventory and other
adjustments(v)
|
|
(231)
|
(1)
|
|
(859)
|
(1)
|
|
2,909
|
-
|
|
(657)
|
-
|
Minesite operating
costs
|
|
$
14,407
|
$
9
|
|
$
11,995
|
$
8
|
|
$
52,654
|
$
9
|
|
$
48,921
|
$
9
|
Notes:
|
|
(i)
|
On June 16,
2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by
way of the Arrangement. As a result of the Arrangement, Agnico
Eagle and Yamana each indirectly own 50.0% of CMC and the
Partnership, which now holds the Canadian Malartic mine. The
information set out in this table reflects the Company's 50.0%
interest in the Canadian Malartic mine.
|
|
|
(ii)
|
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. 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 (before by‑product
metal revenues). 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 metal revenues, unsold concentrate inventory production
costs, smelting, refining and marketing charges and other
adjustments, and then dividing by the number of ounces of gold
produced. Total cash costs per ounce of gold produced on a
co‑product basis is calculated in the same manner as total cash
costs per ounce of gold produced on a by‑product basis except that
no adjustment for by‑product metal revenues is made. 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 Company believes that
these generally accepted industry measures provide a realistic
indication of operating performance and provide useful comparison
points between periods. 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 these measures 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. Management is
aware that these per ounce measures of performance can be affected
by fluctuations in exchange rates and, in the case of total cash
costs 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. Management also performs sensitivity analyses in order to
quantify the effects of fluctuating metal prices and
exchange rates.
|
|
|
(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. This
measure is calculated by adjusting production costs as shown in the
consolidated statements of income (loss) for unsold concentrate
inventory production costs, and then dividing by tonnes of ore
milled. As the total cash costs per ounce of gold produced measure
can be affected by fluctuations in by‑product metal prices and
exchange rates, management believes that the minesite costs per
tonne measure provides 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.
|
|
|
(iv)
|
Under the Company's
revenue recognition policy, revenue is recognized on concentrates
when legal title and risk is transferred. As total cash costs per
ounce of gold produced are calculated on a production basis, an
inventory adjustment is made to reflect the sales margin on the
portion of concentrate production not yet recognized as revenue.
Other adjustments include the addition of smelting, refining and
marketing charges to production costs.
|
|
|
(v)
|
This inventory and
other adjustment reflects production costs associated with unsold
concentrates.
|
Reconciliation of
Production Costs to All-in Sustaining Costs per Ounce of Gold
Produced
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
(United States
dollars per ounce of gold produced, except where
noted)
|
|
December 31,
2016
|
|
December 31,
2015
|
|
December 31,
2016
|
|
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production costs per
the consolidated statements of income (loss)
(thousands of United States dollars)
|
|
$
|
255,112
|
|
$
|
229,819
|
|
$
|
1,031,892
|
|
$
|
995,295
|
Gold production
(ounces)
|
|
|
426,433
|
|
|
422,328
|
|
|
1,662,888
|
|
|
1,671,340
|
Production costs per
ounce of gold production
|
|
$
|
598
|
|
$
|
544
|
|
$
|
621
|
|
$
|
596
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory and other
adjustments(i)
|
|
|
28
|
|
|
60
|
|
|
22
|
|
|
30
|
Total cash costs per
ounce of gold produced (co-product basis)(ii)
|
|
$
|
626
|
|
$
|
604
|
|
$
|
643
|
|
$
|
626
|
|
By-product metal
revenues
|
|
|
(74)
|
|
|
(57)
|
|
|
(70)
|
|
|
(59)
|
Total cash costs per
ounce of gold produced (by-product basis)(ii)
|
|
$
|
552
|
|
$
|
547
|
|
$
|
573
|
|
$
|
567
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
|
|
203
|
|
|
214
|
|
|
187
|
|
|
183
|
|
General and
administrative expenses (including stock options)
|
|
|
75
|
|
|
53
|
|
|
62
|
|
|
58
|
|
Non-cash reclamation
provision and other
|
|
|
2
|
|
|
3
|
|
|
2
|
|
|
2
|
All-in sustaining
costs per ounce of gold produced (by-product basis)
|
|
$
|
832
|
|
$
|
817
|
|
$
|
824
|
|
$
|
810
|
|
By-product metal
revenues
|
|
|
74
|
|
|
57
|
|
|
70
|
|
|
59
|
All-in sustaining
costs per ounce of gold produced (co-product basis)
|
|
$
|
906
|
|
$
|
874
|
|
$
|
894
|
|
$
|
869
|
Notes:
|
|
(i)
|
Under the Company's
revenue recognition policy, revenue is recognized on concentrates
when legal title and risk is transferred. As total cash costs per
ounce of gold produced are calculated on a production basis, this
inventory adjustment reflects the sales margin on the portion of
concentrate production not yet recognized as revenue.
|
|
|
(ii)
|
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. 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 (before by-product
metal revenues). 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 metal revenues, unsold concentrate inventory production
costs, smelting, refining and marketing charges and other
adjustments, and then dividing by the number of ounces of gold
produced. Total cash costs per ounce of gold produced on a
co-product basis is calculated in the same manner as total cash
costs per ounce of gold produced on a by-product basis except that
no adjustment for by-product metal revenues is made. 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 Company
believes that these generally accepted industry measures provide a
realistic indication of operating performance and provide useful
comparison points between periods. 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 these measures 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. Management is aware that these per ounce measures of
performance can be affected by fluctuations in exchange rates and,
in the case of total cash costs 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 as well as other data prepared in
accordance with IFRS. Management also performs sensitivity analyses
in order to quantify the effects of fluctuating metal prices and
exchange rates.
|
RECONCILIATION OF
LONG-TERM DEBT TO NET DEBT
|
|
|
(thousands of
United States dollars)
|
|
As at December 31,
2016
|
|
As at December 31,
2015
|
|
|
|
|
|
|
|
Current portion of
long-term debt per the consoldiated balance sheets
|
|
$
|
129,896
|
|
$
|
14,451
|
Non-Current portion
of long-term debt
|
|
|
1,072,790
|
|
|
1,118,187
|
Long-term
debt
|
|
$
|
1,202,686
|
|
$
|
1,132,638
|
Adjustments:
|
|
|
|
|
|
|
|
Deferred financing
costs
|
|
$
|
12,210
|
|
$
|
11,264
|
|
Cash and cash
equivalents
|
|
|
(539,974)
|
|
|
(124,150)
|
|
Short-term
investments
|
|
|
(8,424)
|
|
|
(7,444)
|
Net Debt
|
|
$
|
666,498
|
|
$
|
1,012,308
|
SOURCE Agnico Eagle Mines Limited