TORONTO, Feb. 27 /PRNewswire/ - Agnico-Eagle Mines Limited today reported fourth quarter net earnings of $3.1 million, or $0.06 per share compared to a net loss of $6.8 million or $0.12 per share in the fourth quarter of 1999. Operating cash flow improved significantly to $9.1 million, or $0.17 per share compared to a deficit of $6.5 million, or $0.12 per share in the same period of 1999.
Highlights for the quarter include:
- Increased gold production in the fourth quarter of over 300 percent to 71,008 ounces, when compared to 1999, with a 74 percent decrease in cash costs to $95 per ounce of gold, both Company and LaRonde Mine records.
- Increase of 28 percent in gold reserves and resources to 7.8 million ounces at LaRonde with improved gold and copper grades and increased ore tonnage.
- Deep exploration drilling encounters large thicknesses of gold/copper mineralization and suggests a deposit strike length of approximately 2,000 feet, with the deposit still open in all directions.
- New infrastructure at LaRonde achieves first full quarter at production rate of 5,000 tons per day, with excess capacity available in the Penna Shaft for further expansion of production rate.
"With the ramp up to 5,000 tons per day at LaRonde now complete, Agnico- Eagle has met its operating targets in 2000 and has achieved a dramatic turnaround in its financial results", said Sean Boyd, President and Chief Executive Officer. "Furthermore the LaRonde deposit continues to grow, solidifying its current position as the largest gold deposit in Canada with a combined gold reserve and resource of 7.8 million contained ounces. This sets the stage for a further expansion of the mining rate at LaRonde as the Company prepares to optimize the mine for its shareholders," added Mr. Boyd.
For the full year 2000, Agnico-Eagle reported a net loss of $5.2 million, or $0.09 per share compared to a net loss of $16.5 million, or $0.31 per share in the same period last year. Operating cash flow improved to $4.9 million, or $0.09 compared to a cash deficit of $16.5 million, or $0.31 per share in 1999.
The Company is hosting a conference call today at 1:30 p.m. to discuss fourth quarter results and to provide an update on exploration and development activities. To participate in the conference call, please dial (416) 620-2401. To access the rebroadcast, please dial 1-800-558-5253 and enter the reservation number 17903621. The conference call can also be accessed over the internet through the Company's website www.agnico-eagle.com.
OPERATING RESULTS
For the year ended December 31, 2000, results reflected the turnaround at LaRonde with the completion of the expansion to 5,000 tons per day and the transition to the ore zones at the new Penna Shaft. A significant increase in gold production and decline in cash costs to produce an ounce of gold resulted in a 71 percent improvement in the net loss per share in 2000 when compared to 1999 results and a return to positive operating cash flow in spite of virtually no change in the gold price realized in 2000. Onsite cash operating costs per ton milled at LaRonde decreased by four percent in 2000 to C$54 per ton when compared to 1999. This reflects the economies of scale realized on the expansion to 5,000 tons per day, the savings from focusing all production on the Penna Shaft where mining widths are greater and the closure of Shafts No. 1 and No. 2. Cash operating costs to produce an ounce of gold were $188 per ounce, compared to $277 per ounce in 1999. The turnaround in cash operating costs was due to the completion of the expansion at LaRonde to 5,000 tons per day and the resultant increase in production of gold and byproduct metals.
Consolidated cash and cash equivalents decreased to $13.9 million in 2000 from $22.6 million at the end of 1999. In 2000, $52.5 million was drawn under the Company's long-term bank facility while cash used for capital expansion was $68.4 million. Including the undrawn portion of its bank facility, the Company had available liquidity of over $46 million at the end of the year. Capital expenditures of $30.8 million are budgeted for 2001, most of which relates to the development of the lower gold/copper rich portion of the Penna Shaft. This amount is expected to be financed from operating cash flows and the drawdown of an additional $7.5 million under the bank facility.
The outlook for 2001 is very positive as gold production is expected to be just under 230,000 ounces with annual cash costs decreasing further to under $150 per ounce. The full benefits of the expansion to 5,000 tons per day are not expected to be realized until late 2001 when much of the initial development of the lower gold-rich portion of Zone 20 North is completed, after which gold production is expected to exceed 300,000 ounces per annum. Agnico-Eagle's cash costs are heavily dependent on the U.S./Canadian dollar exchange rate and the prices it receives for its byproduct silver, zinc and copper production. The assumptions made for 2001 are a U.S./Canadian dollar exchange rate of $1.47, silver price of $5.00 per ounce, zinc price of $0.50 per pound and a copper price of $0.80 per pound.
ORE RESERVES AND RESOURCES
For the eighth consecutive year, the total ore reserve and resource position has increased at the LaRonde Mine. On a year over year basis, the LaRonde Mine reserves and resources stood at 7.8 million ounces of gold, an increase of 28 percent over last year's position of 6.1 million ounces of gold. Tonnage increased 13 percent from 52.1 million tons to 59.0 million tons. Furthermore, the quality of the resource position continues to improve with increasing gold and copper grades and thicker mineralization which has improved the average net smelter value per ton of resource.
"With a gold reserve and resource base of 7.8 million ounces, Agnico- Eagle is focused on continuing to increase the quality and size of this impressive gold deposit," said Mr. Boyd. "The deposit remains open for expansion in all directions and our drilling program continues to encounter mineralization beyond the present mineral resource outline," added Mr. Boyd.
Agnico Eagle's proven and probable gold reserves increased by 9 percent to over 3.3 million ounces of gold compared to 3.0 million ounces last year. Including production replacement, a total of 460,000 ounces was transferred into reserves. The metal prices used for the ore reserve and resource calculation were $300 per ounce for gold, $5.00 per ounce for silver, $0.80 per pound for copper and $0.50 per pound for zinc. The Canadian/US dollar exchange rate assumed was $1.47. The resource was calculated down to a depth of 9,900 feet below surface and incorporates the latest deep drilling results. If a gold price of $275 per ounce were assumed, the overall reserve and resource position would only decline by three percent.
Both the current proven and probable gold reserve position of 3.3 million ounces and the total gold reserve and resource position of 7.8 million ounces are the highest in LaRonde's 13 year operating history. The latest drilling results continued to confirm the growth potential of Zone 20 North. Tonnage for this zone increased 18 percent to 51.8 million tons, an increase of 7.8 million tons over the previous year. Total contained ounces increased 39 percent to 6.6 million ounces, up from 4.7 million ounces.
DRILLING AND EXPLORATION
Four drills were in operation at LaRonde at the end of the quarter. One was focused on delineation drilling in the upper part of the mine, while three drills were focused on exploration. Two of the exploration drills were working on expanding the resource below the shaft bottom.
Delineation drilling on Zone 20 South for production purposes continued during the quarter. The results above the 122 Level continued to encounter high gold grades. The drill holes were drilled from production draw points and they indicate the high grade gold content of Zone 20 South. Some of the more recent results are tabulated below:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(2 oz) (oz/ton) Copper(%) Zinc(%)
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11021801 27.6 0.82 4.55 0.50 8.01
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11021803 27.6 0.92 5.07 0.27 7.08
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11021761 34.4 0.41 2.97 0.27 6.90
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11021762 32.5 0.49 5.15 0.62 7.74
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11021781 26.6 0.33 3.49 0.30 7.14
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11021741 24.9 0.38 3.38 0.57 5.68
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11021742 32.2 0.21 3.68 0.30 4.73
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11421801 27.6 0.81 3.77 0.48 6.75
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11421802 28.2 0.87 5.63 0.55 10.13
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11421821 9.8 0.38 5.48 0.24 7.27
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11421822 13.1 0.34 3.72 0.15 6.88
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A total of 11 drill holes were extended from the 20th level exploration drift onto the El Coco property. The objective was to test for Zone 20 South extensions upward to the level and to the east. Drill hole 20-301 returned the most interesting value:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(2 oz) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
20-301 11.5 0.89 7.04 0.49 8.29
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This result was obtained outside the upper known resource envelope of Zone 20 South indicating an upward extension to the zone. This result has been incorporated in the new reserve calculation. Follow up drilling will be conducted from the 20th level exploration drift which is being extended onto the El Coco property as part of a $3.0 million surface and underground exploration program in 2001. This program will test the same favourable stratigraphic horizon that hosts all of the deposits in the Cadillac-Bousquet Belt.
Delineation drilling above Level 149 continued to confirm the existence of higher-grade gold pockets within Zone 20 North. The definition drilling continued to confirm thicknesses of massive sulfide mineralization varying from 60 feet to over 120 feet thick. Some of the more recent results have been tabulated below:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
14320712 120.1(Zn) 0.02 3.55 0.01 7.17
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14320713 114.2(Zn) 0.02 4.75 0.05 7.91
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14320611 11.5(Au) 0.16 2.42 0.46 0.02
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41.0(Zn) 0.04 4.16 0.09 11.42
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14320631 8.2(Au) 0.09 2.59 0.25 0.03
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30.2(Zn) 0.02 2.56 0.05 11.57
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14320632 6.9(Au) 0.10 2.73 0.54 0.55
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26.2(Zn) 0.09 2.02 0.06 12.98
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14620571 40.7(Au) 0.15 3.46 0.73 0.95
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57.7(Zn) 0.03 3.34 0.07 10.61
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14620572 38.1(Au) 0.23 5.68 0.82 0.46
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55.8(Zn) 0.04 3.92 0.10 13.49
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14620573 44.3(Au) 0.14 2.18 0.63 1.39
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60.4(Zn) 0.04 4.31 0.05 12.63
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14620751 73.8(Zn) 0.02 6.73 0.07 4.67
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11420661 12.8(Au) 0.06 1.22 0.69 0.01
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46.3(Zn) 0.02 1.35 0.01 7.42
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11420662 9.2(Au) 0.12 2.32 1.48 0.06
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49.9(Zn) 0.04 2.62 0.02 8.06
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14920571 38.7(Au) 0.12 1.59 1.28 0.91
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68.9(Zn) 0.02 2.30 0.05 12.40
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14920562 10.8(Au) 0.11 1.21 0.89 2.69
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69.6(Zn) 0.02 3.53 0.09 14.02
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The six-hole Deep Drill Program continued with one drill hole completed during the quarter. A second drill hole was completed at the end of January. Drill hole 3206-12 intersected Zone 20 North at a depth of 7,700 feet below surface. The values have been summarized below:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
3206-12 41.0 0.12 1.04 1.19 0.07
-------------------------------------------------------------------------
The drill hole confirmed the broad gold-copper mineralization encountered in previous drilling below the shaft. Copper values were more than double the average reserve and resource copper grade at almost 1.2 percent while gold grades were slightly lower than average reserve and resource grade.
Two drill holes were drilled to test the eastern and western limits of last year's known resource envelope. Both drill holes were successful at confirming and extending the limits. Drill hole 3160-11 intersected economic grades 500 feet to the west of last year's envelope. Drill hole 3160-15 intersected economic grades at the previously indicated eastern limit of mineralization.
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
3160-11 9.2 0.15 0.20 0.07 0.01
-------------------------------------------------------------------------
3206-15 18.7 0.08 3.20 1.08 2.65
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The most significant drill hole result was obtained during January. The result is one of the largest gold-copper intersections ever encountered on the LaRonde Property and it indicates the strength and extent of the gold/copper mineralization at depth. Drill hole 3206-14D intersected Zone 20 North at a depth of 9,560 feet below surface and 2,100 feet west of the Penna Shaft. The following intercept was obtained:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
3206-14D 101.7 0.18 0.44 0.49 0.03
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101.7 0.24(Uncut) 0.44 0.49 0.03
-------------------------------------------------------------------------
or 166.0 0.12 0.38 0.31 0.55
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166.0 0.16(Uncut) 0.38 0.31 0.55
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Drill hole 3206-14D was located approximately 500 feet to the east of drill hole 3170-11B which had intersected 51.9 feet grading 0.18 ounces of gold per ton with minor amounts of silver and copper at a depth of 9,737 feet below surface. The 101.7-foot intercept was uniformly mineralized and contained six occurrences of visible gold. Assays as high as 4.5 ounces of gold per ton over 3.3 feet were returned. The zone consisted of silicified felsic volcanics containing 10% to 15% disseminated and stringer sulfides historically indicative of an alteration halo.
Drill hole 3160-12 was drilled to test the western extension of Zone 20 North at a depth of 8,200 feet below surface. The drill hole was eventually abandoned in massive sulfide mineralization when the drill rods became jammed in the hole. An intercept of 0.22 ounces of gold per ton over a true thickness of 1.6 feet was encountered at the western limit of the resource calculation indicating potential to extend Zone 20 North to the west beyond the present resource outline. Drill hole 3160-12 is presently being re-drilled and is targeting the gold-bearing massive sulfide mineralization encountered just prior to the hole being lost.
The significance of the drilling results at depth is as follows:
- The increasing thickness of the mineralization at depth has been reconfirmed.
- The relationship between increasing gold and copper grades at depth has been reconfirmed.
- Two drill holes lie 500 feet to 800 feet below last year's resource calculation extending the deposit at depth. The resource calculation did not incorporate the total thickness of drill hole 3194-08. This would suggest that the resource below the bottom of the Penna Shaft has the potential to be thicker than currently estimated.
- The drilling results at depth continue to suggest a trend to massive sulfide mineralization from east to west which is similar to the geological model of LaRonde's Main Zone.
- The strike length of the deposit at depth is approximately 2,000 feet long.
- The deposit is still open in all directions.
The Longitudinal illustrations that detail the drill results presented in this report can be viewed, prior to the conference call, and/or downloaded from the Company's website:
www.agnico-eagle.com
This press release contains certain "forward-looking statements" (within the meaning of the United States Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Risks and uncertainties are disclosed under the heading "Risk Factors" in the Company's Annual Information Form (AIF) filed with certain Canadian securities regulators (including the Ontario and Quebec Securities Commissions) and with the United States Securities and Exchange Commission (as Form 20-F).
Agnico-Eagle Mines Limited is an established Canadian gold producer with operations located principally in Northwestern Quebec and exploration and development activities in Quebec, Ontario and Nevada. Agnico-Eagle's operating history includes almost three decades of continuous gold production primarily from underground mining operations. Current proven and probable reserves stand at 3.3 million contained ounces, with an additional 4.5 million ounces in the mineral resource category at its LaRonde Mine.
LaRonde Reserve and Resource Data Agnico-Eagle Mines Limited
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Tons
Category and Zone Au(oz/t) Ag(oz/t) Cu(%) Zn(%) Au(oz) (000's)
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Proven
-------------------------------------------------------------------------
Zone 20 North (Au) 0.12 1.67 0.46 0.70 116,057 987
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Zone 20 North (Zn) 0.03 2.80 0.07 6.76 115,027 4,693
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Zone 20 South 0.19 1.54 0.35 2.38 116,850 610
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Zone 20 South
(El Coco) 0.32 2.15 0.31 3.87 202,971 626
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Total Proven Reserve 0.08 2.47 0.17 5.25 550,905 6,916
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Probable
-------------------------------------------------------------------------
Zone 20 North (Au) 0.16 2.11 0.65 1.71 1,739,086 11,186
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Zone 20 North (Zn) 0.03 2.87 0.11 7.30 320,380 11,646
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Zone 20 South 0.15 0.81 0.24 1.20 351,522 2,307
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Zone 20 South
(El Coco) 0.22 2.76 0.24 4.94 121,171 563
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Zone 6 0.11 1.63 0.18 4.21 7,387 65
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Zone 7 0.17 1.04 0.37 1.65 165,970 973
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Total Probable
Reserve 0.10 2.30 0.36 4.18 2,705,516 26,740
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Proven and Probable
Reserve 0.10 2.34 0.32 4.40 3,256,421 33,656
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Indicated Resource
-------------------------------------------------------------------------
Zone 20 North (Au) 0.13 0.39 0.38 0.05 152,332 1,155
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Zone 20 South 0.11 0.40 0.06 1.12 21,696 203
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Zone 6 0.12 1.10 0.24 1.99 130,656 1,135
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Total Indicated
Resource 0.12 0.71 0.29 1.02 304,684 2,493
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Inferred Resource
-------------------------------------------------------------------------
Zone 20 North (Au) 0.19 0.82 0.80 0.11 4,110,372 21,806
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Zone 20 North (Zn) 0.00 1.60 0.00 12.61 716 328
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Zone 7 0.12 1.68 0.49 1.61 87,883 734
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Total Inferred
Resource 0.18 0.86 0.78 0.34 4,198,971 22,868
-------------------------------------------------------------------------
Total Resource 0.18 0.85 0.73 0.41 4,503,655 25,361
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Global Reserve and
Resource 0.13 1.70 0.50 2.68 7,760,076 59,017
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Notes to the Ore Reserve and Mineral Resource Table:
(1) The Corporation's ore reserves are calculated as at December 31,
2000. At LaRonde, more recent information on exploration, mining,
processing, metallurgy and other economic and other factors has been
used in the ore reserve calculation. The ore reserves are calculated
using an appropriate cut-off grade associated with an average
long-term gold price of $300 per ounce, silver price of $5.00 per
ounce, copper price of $0.80 per pound, zinc price of $0.50 per pound
and a US/$CAN exchange rate of 1.47. The calculations incorporate the
current and/or expected mine plans and cost levels and metal
recoveries. Analysis at a gold price of $275 per ounce indicated a
reductions in the reserve base of approximately 3%. The qualified
person responsible for reserve and mineral resource calculations is
Marc H. Legault, Chief Geologist LaRonde Division. Consistent with
Agnico Eagle Mines Limited's normal ore reserve estimation practices,
Roscoe-Postle and Associates will perform independent data
verification.
(2) An ore reserve is the economically mineable part of a measured or
indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. An ore reserve includes diluting
materials and allowances for losses that may occur when the material
is mined. A proven ore reserve is the economically mineable part of a
measured mineral resource for which quantity, grade or quality,
densities, shape, physical characteristics are so well established
that they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic viability
of the deposit. A probable ore reserve is the economically mineable
part of an indicated mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics, can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the
deposit.
(3) A mineral resource is a concentration or occurrence of natural,
solid, inorganic or fossilized organic material in or on the earth's
crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a
mineral resource are known, estimated or interpreted from specific
geological evidence and knowledge. An indicated mineral resource is
that part of a mineral resource for which quantity, grade or quality,
densities, shape and physical characteristics, can be estimated with
a level of confidence sufficient to allow the appropriate application
of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is
based on detailed and reliable exploration and test information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced
closely enough for geological and grade continuity to be reasonably
assumed. An inferred mineral resource is that part of a mineral
resource for which quantity, grade or quality can be estimated on the
basis of geological evidence and limited sampling and reasonably
assumed, but not verified, geological and grade continuity. The
estimate is based on limited information and sampling gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. Mineral resources that are
not mineral reserves do not have demonstrated economic viability.
Summarized Financial and Operating Data Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
Three months ended Year ended
(thousands of United States December 31, December 31,
dollars, except where noted) 2000 1999 2000 1999
-------------------------------------------------------------------------
(Restated)(x) (Restated)(x)
Consolidated Financial Data
Income and cash flow
Revenues from mining
operations $ 28,417 $ 2,710 $ 66,971 $ 25,583
Net income (loss) for
period $ 3,097 $ (6,808) $ (5,169) $ (16,506)
Net income (loss) per
share $ 0.06 $ (0.12) $ (0.09) $ (0.31)
Operating cash flow
(before non-cash working
capital) $ 9,139 $ (6,470) $ 4,923 $ (13,570)
Operating cash flow
per share $ 0.17 $ (0.12) $ 0.09 $ (0.25)
Weighted average number
of shares - basic
(in thousands) 54,805 53,462 54,447 53,331
Operating and Financial
Summary
LaRonde Division
Revenues from mining
operations $ 28,417 $ 2,710 $ 66,971 $ 25,583
Mine operating costs 15,682 7,145 51,901 29,041
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Mine operating profit
(loss) $ 12,735 $ (4,435) $ 15,070 $ (3,458)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Tons of ore milled 457,473 227,826 1,415,888 798,396
Head grades:
Gold 0.18 0.08 0.14 0.13
Silver 2.07 0.83 1.46 0.71
Zinc 4.27% 1.96% 2.89% 1.20%
Copper 0.30% 0.18% 0.25% 0.30%
Recovery rates:
Gold 93.78% 90.89% 91.92% 93.40%
Silver 81.70% 60.20% 71.60% 61.00%
Zinc 80.00% 69.10% 73.00% 60.10%
Copper 57.10% 61.10% 62.20% 72.10%
Payable production:
Gold (ounces) 71,008 16,211 173,852 90,035
Silver (ounces in
thousands) 587 83 1,128 277
Zinc (pounds in thousands) 26,553 5,127 50,681 9,778
Copper (pounds in
thousands) 1,194 476 4,943 3,282
Realized prices (US$):
Gold (per ounce) $ 271 $ 292 $ 278 $ 274
Silver (per ounce) $ 4.71 $ 5.29 $ 4.80 $ 5.28
Zinc (per pound) $ 0.50 $ 0.52 $ 0.52 $ 0.50
Copper (per pound) $ 0.86 $ 0.80 $ 0.84 $ 0.69
Onsite operating costs
per ton milled
(Canadian dollars) $ 50 $ 53 $ 54 $ 56
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating costs per gold
ounce produced (US$):
Onsite operating costs
(including reclamation
provision) $ 210 $ 503 $ 294 $ 334
Less: Non-cash reclamation
provision - (3) (3) (4)
Net by product revenues (115) (135) (103) (53)
-------------------------------------------------------------------------
Cash operating costs $ 95 $ 365 $ 188 $ 277
Non cash costs:
Reclamation provision - 3 3 4
Depreciation and
amortization 25 74 33 61
-------------------------------------------------------------------------
Total operating costs $ 120 $ 442 $ 224 $ 342
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(x)Effective 2000, the Company changed its accounting policy with respect
to revenue recognition. Revenue from concentrates is now recognized when
legal title passes while gold and silver are recorded at net realizable
value when poured and also included in revenue from mining operations.
Prior to this change, Agnico-Eagle recognized revenue on a production
basis. As the proportion of the Company's revenues from concentrates is
increasing, this change substantially reduces the uncertainty of the
previous method and makes the Company's practices more consistent with
international practice. The financial impact of this accounting change
has been reflected in the 1999 comparative figures. Prior to 1999, the
impact has been determined to be immaterial and no changes have been
made.
Consolidated Balance Sheets Agnico-Eagle Mines Limited
as at December 31,
-------------------------------------------------------------------------
(thousands of United States dollars)
2000 1999
-------------------------------------------------------------------------
(Restated)(x)
ASSETS
Current
Cash and cash equivalents $ 13,906 $ 22,588
Metals awaiting settlement and gold bullion 15,235 1,835
Income taxes recoverable 2,001 2,353
Inventories:
In-process 3,101 3,459
Supplies 3,420 3,739
Prepaid expenses and other 5,081 4,773
-------------------------------------------------------------------------
Total current assets 42,744 38,747
Investments 18,012 20,689
Future income and mining tax assets 21,499 13,144
Mining properties 282,497 219,817
-------------------------------------------------------------------------
$ 364,752 $ 292,397
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 17,188 $ 9,398
Dividends payable 1,651 1,682
Income and mining taxes payable 2,175 2,913
Interest payable 2,846 1,896
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Total current liabilities 23,860 15,889
-------------------------------------------------------------------------
Long-term debt 180,666 124,122
-------------------------------------------------------------------------
Reclamation provision and other liabilities 5,567 5,433
-------------------------------------------------------------------------
Future income and mining tax liabilities 18,204 9,695
-------------------------------------------------------------------------
Minority interest 2,565 3,291
-------------------------------------------------------------------------
Shareholders' Equity
Common shares
Authorized - unlimited
Issued - 56,139,480 (1999 - 55,391,451) 158,252 152,992
Other paid-in capital 14,535 14,535
Contributed surplus 4,665 4,058
Deficit (36,880) (29,102)
Company's own shares held by a subsidiary
company (6,682) (8,516)
-------------------------------------------------------------------------
Total shareholders' equity 133,890 133,967
-------------------------------------------------------------------------
$ 364,752 $ 292,397
---------------------------
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Consolidated Statements of Operations Agnico-Eagle Mines Limited
------------------------------------------------------------------------
(thousands of United Three months ended Year ended
States dollars, except December 31, December 31
per share amounts) 2000 1999 2000 1999
------------------------------------------------------------------------
(Restated)(x) (Restated)(x)
REVENUES
Revenues from
mining operations $ 28,417 $ 2,710 $ 66,971 $ 25,583
Interest and
sundry income 123 213 1,097 2,506
------------------------------------------------------------------------
28,540 2,923 68,068 28,089
COSTS AND EXPENSES
Production 15,682 7,283 51,901 29,516
Exploration 1,194 1,787 3,213 3,838
Depreciation
and amortization 1,759 1,201 5,708 5,463
General
and administrative 1,322 1,056 4,223 4,044
Capital tax 485 427 1,301 1,192
Interest 2,233 2,170 8,859 8,637
Other - 4 - 974
------------------------------------------------------------------------
Income (loss) before
the undernoted 5,865 (11,005) (7,137) (25,575)
Foreign currency loss (789) (1,032) (1,833) (329)
------------------------------------------------------------------------
Income (loss) before
income and mining tax
expense (recoveries) 5,076 (12,037) (8,970) (25,904)
Income and mining
tax expense (recoveries) 1,979 (5,229) (3,801) (9,398)
------------------------------------------------------------------------
Net income (loss)
for the period $ 3,097 $ (6,808) $ (5,169) $ (16,506)
------------------------------------------------------------------------
------------------------------------------------------------------------
Net income (loss)
per share $ 0.06 $ (0.12) $ (0.09) $ (0.31)
------------------------------------------------------------------------
------------------------------------------------------------------------
Consolidated Statements of Cash Flows Agnico-Eagle Mines Limited
------------------------------------------------------------------------
(thousands of United Three months ended Year ended
States dollars) December 31, December 31,
2000 1999 2000 1999
------------------------------------------------------------------------
(Restated)(x) (Restated)(x)
Operating activities
Net income (loss)
for the period $ 3,097 $ (6,808) $ (5,169) $ (16,506)
Add (deduct) items not
affecting cash from
operating activities:
Depreciation
and amortization 1,759 1,201 5,708 5,463
Provision for (recoveries
of) future income
and mining taxes 2,062 (4,443) (2,518) (9,083)
Foreign currency
translation loss 844 2,071 2,206 2,206
Amortization of
deferred interest
and financing costs 1,462 1,074 4,702 4,213
Other (85) 435 (6) 137
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9,139 (6,470) 4,923 (13,570)
Net premiums paid on
metals, foreign currency
and interest rate
option contracts (40) (7,527) (344) (7,527)
Net change in non-cash
working capital balances
related to operations
Metals awaiting settlement
and gold bullion (2,770) 2,993 (13,400) 21,375
Inventories (1,115) (2,154) 677 (4,109)
Prepaid expenses
and other (1,488) 287 (308) (388)
Income and mining taxes
recoverable and payable (149) (1,343) 850 (1,611)
Accounts payable
and accrued liabilities 4,748 2,576 7,986 2,938
Interest payable 2,057 1,107 950 (1)
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Cash flows from (used
in) operating activities 10,382 (10,531) 1,334 (2,893)
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Investing activities
Additions to mining
properties (21,206) (18,342) (68,387) (68,892)
Increase in investments
and other 68 (167) (46) (109)
------------------------------------------------------------------------
Cash flows used in
investing activities (21,138) (18,509) (68,433) (69,001)
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Financing activities
Dividends paid 36 (53) (1,064) (1,075)
Common shares issued 3,985 596 5,136 1,561
Share issue costs (88) - (88) -
Proceeds from
long-term debt 10,000 15,000 52,500 15,000
Financing costs - (2,942) - (2,942)
Purchase of the
Company's own shares
held by a subsidiary
company and other 1,542 5,461 1,887 5,461
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Cash flows from
financing activities 15,475 18,062 58,371 18,005
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Effect of exchange rate
changes on cash
and cash equivalents (28) (1,285) 46 215
Net increase (decrease)
in cash and
cash equivalents 4,691 (12,263) (8,682) (53,674)
Cash and cash
equivalents, beginning
of period 9,215 34,851 22,588 76,262
------------------------------------------------------------------------
Cash and cash
equivalents,
end of period $ 13,906 $ 22,588 $ 13,906 $ 22,588
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------------------------------------------------------------------------
Other operating
cash flow information:
Interest paid
during the period $ 1,182 $ 340 $ 8,271 $ 4,755
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------------------------------------------------------------------------
Taxes paid (recovered)
during the period $ - $ 387 $ (1,780) $ 1,961
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SOURCE Agnico-Eagle Mines Limited
CONTACT: Sean Boyd, President and CEO, Agnico-Eagle Mines Limited,