Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in
Included in the third quarter of 2020 net income, and not adjusted above, are a non-cash stock option expense of
In the first nine months of 2020, the Company reported net income of
In the third quarter of 2020, cash provided by operating activities was
In the first nine months of 2020, cash provided by operating activities was
The increase in cash provided by operating activities in the third quarter of 2020, compared to the prior-year period, was mainly due to an increase in revenues from mining operations resulting from higher average realized gold and silver prices, and higher gold sales volume, offset by higher production costs from the
The increase in cash provided by operating activities in the first nine months of 2020, compared to the prior-year period, was mainly due to an increase in revenues from mining operations resulting from higher average realized gold prices, partially offset by lower gold sales volume, the contribution of nine months of production costs from Meliadine, higher production costs from the
"Despite ongoing challenges related to the COVID-19 pandemic, Agnico Eagle's operations had strong performance in the third quarter of 2020. Many of our operations set monthly or quarterly production records, which is a testament to the hard work of our employees and the continued support of our local communities in these difficult times", said
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1 | Adjusted net income is a non-GAAP measure. For a discussion regarding the Company's use of non-GAAP measures, please see "Note Regarding Certain Measures of Performance". |
2 | Free cash flow is a non-GAAP measure. For a discussion regarding the Company's use of non-GAAP measures, please see "Note Regarding Certain Measures of Performance". |
Third quarter of 2020 highlights include:
- Gold production returns to near-record levels seen in the fourth quarter of 2019 – Payable gold production3 in the third quarter of 2020 was 492,693 ounces (including 13,305 ounces of pre-commercial gold production from the Barnat deposit at Canadian Malartic and 1,982 ounces of pre-commercial gold production at the Tiriganiaq open pit at Meliadine) at production costs per ounce of
$865 , total cash costs per ounce4 of$764 and all-in sustaining costs per ounce5 ("AISC") of$1,016 . Production costs, total cash costs per ounce and AISC per ounce exclude the pre-commercial production ounces from Barnat and Tiriganiaq - Operations have rebounded strongly post second quarter 2020 COVID-19 interruptions – In the third quarter of 2020, new operational records were established at several of the Company's mines. At Canadian Malartic, record monthly tonnage was milled in August, while daily record tonnage was milled at
Goldex in September. Record quarterly gold production was achieved at Meliadine, and record monthly gold production was achieved atLaRonde Zone 5 ("LZ5") at theLaRonde Complex in August. At Meadowbank, the operation has showed consistent performance since July, and Kittila continued to have strong underground production in the quarter and the mill expansion is progressing ahead of schedule - Production and cost guidance maintained for 2020; no change to longer-term production guidance – Expected gold production in 2020 is unchanged at 1.68 to 1.73 million ounces, while expected total cash costs per ounce and AISC per ounce continue to be forecast in the range of
$740 to$790 and$1,025 to$1,075 , respectively. Gold production guidance for 2021 and 2022 remains unchanged with a mid-point of 2.05 million and 2.10 million ounces, respectively - Slight increase to 2020 capital expenditures reflect accelerated development spending – Capital expenditures in 2020 are expected to be approximately
$720 to$740 million (compared to previous guidance of$690 million ). The increased capital spending primarily relates to accelerated development programs at Kittila (mill, water and tailings management) and Amaruq (restart of underground development and accelerated waste stripping), and the advanced procurement of pipe for the waterline at Meliadine - Strong quarterly free cash flow drives 75% increase in dividend – On the back of record quarterly results, a quarterly dividend of
$0.35 per share has been declared. The previous quarterly dividend was$0.20 per share - COVID-19 update – COVID-19 protocols (not including compensation paid to
Nunavut -based employees) added$2.8 million (approximately$6 per ounce) to the Company's operating costs in the third quarter of 2020. To-date, the Company has seen limited impact on operational productivity as a result of COVID-19, and it is continuing to strengthen and enhance COVID-19 protocols. In the third quarter of 2020, theNunavut -based workforce remained at home due to current COVID-19 health guidelines issued by the Government ofNunavut and the Company continued to pay for 75% of the base salaries for these employees (a total of$3.7 million pre-tax,$2.2 million net of tax, included in Other Expenses) - Exploration – The Company's exploration focus remains on pipeline projects, near mine opportunities and mineral reserve and mineral resource replacement. Based on ongoing exploration success and strong operational performance, the Company anticipates an increase in exploration spending in 2021. Key exploration highlights include:
- Kittila – Drilling in the
Sisar Zone continues to show potential to significantly expand the zone's footprint laterally and at depth. Recent intercepts, such as 7.3 grams per tonne ("g/t") gold over 4.4 metres at 1,626 metres depth, further indicate theSisar Zone's potential to be developed into a new mining horizon alongside theMain Zone - Canadian
Malartic Underground – The expanded drilling campaign at theEast Gouldie Zone completed 77,500 metres (100% basis) of conversion and expansion drilling in the first nine months of 2020, resulting in highlights such as 6.3 g/t gold over 39.3 metres at 1,472 metres depth in the deposit's core. The ongoing success of the drilling program is expected to lead to a significant increase in East Gouldie's mineral resource estimate at year-end 2020, which will be integrated into a preliminary economic assessment which is expected to be completed in early 2021 - LaRonde – Exploration drilling in LaRonde 3's East mine area is confirming and expanding the high grade 20N
Zinc South Zone discovery, with highlights such as 8.4 g/t gold, 101 g/t silver, 0.57% copper and 13.3% zinc over 2.8 metres at 3,393 metres depth. The latest results also suggest that gold grades are increasing with depth in the zone, which remains open to the east, at depth and at shallower levels Kirkland Lake Project – The conversion drilling program at depth at Upper Beaver in the third quarter of 2020 returned highlight intercepts such as 11.6 g/t gold and 0.48% copper over 5.6 metres at 1,227 metres depth. Results from the 2020 exploration program will be incorporated into an updated mineral reserve and mineral resource estimate at year-end and an updated technical study to be completed in 2021Pinos Altos – Underground exploration drilling of the Cubiro deposit is extending and validating the lateral continuity of wide, high-grade gold and silver intercepts, with highlights such as 8.1 g/t gold and 119 g/t silver over 3.4 metres at 77 metres depth. The latest results from Cubiro will be incorporated into an initial mineral reserve estimate for Cubiro at year-end that, combined with other developments on the property, are expected to replace ore mined atPinos Altos in 2020
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3 | Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. |
4 | Total cash costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for total cash costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
5 | AISC per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
Third Quarter Financial and Production Highlights
All of the Company's eight mines started the third quarter of 2020 operating at full capacity following a successful ramp-up of operations in May and
In the third quarter of 2020, payable gold production was 492,693 ounces (including 13,305 ounces of pre-commercial gold production from the Barnat deposit at Canadian Malartic and 1,982 ounces of pre-commercial gold production at the Tiriganiaq open pit at Meliadine), compared to 476,937 ounces in the prior-year period (which included 33,134 ounces of pre-commercial gold production at Amaruq).
The higher gold production in the third quarter of 2020 when compared to the prior-year period was primarily due to the strong performance of the
In the first nine months of 2020, payable gold production was 1,235,123 ounces (including 18,930 ounces of pre-commercial gold production from the Barnat deposit at Canadian Malartic and 1,982 ounces of pre-commercial gold production at the Tiriganiaq open pit at Meliadine), compared to 1,287,469 ounces in the prior-year period (including an aggregate of 82,562 ounces of pre-commercial production at Meliadine and Amaruq).
The lower gold production in the first nine months of 2020, when compared to the prior-year period, was primarily due to lower production at four of the Company's eight mines as a result of temporary shutdowns or reduction in activities in the second quarter of 2020 related to government mandated COVID-19 restrictions, partially offset by the contribution of nine months of production from Meliadine which achieved commercial production in
Production costs per ounce in the third quarter of 2020 were
Production costs per ounce and total cash costs per ounce in the third quarter of 2020 increased when compared to the prior-year period primarily due to higher production costs at the
Production costs per ounce in the first nine months of 2020 were
Production costs per ounce and total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period primarily due to lower gold production related to temporary shutdowns or reduction in activities in the second quarter of 2020, higher production costs at the
AISC in the third quarter of 2020 was
AISC in the first nine months of 2020 was
Strong Financial Results; Bank Credit Facility Fully Repaid; Dividend Increased by 75%
Record quarterly cash provided by operating activities resulted in strong free cash flow generation in the third quarter of 2020. With the forecast of record gold production in each of the next two years, combined with strong margins expected to be supported by the positive outlook for the price of gold, Agnico Eagle has increased its dividend by a further 75% to
Cash and cash equivalents and short-term investments decreased slightly to
As of
As of
The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to support its key input costs.
Capital Expenditures
The total capital expenditure forecast (including sustaining capital) for the full year 2020 is now expected to be in the range of
- Kittila – An addition of approximately
$15 million in development capital expenditures to accelerate the completion of the mill expansion, the construction of the NP4 tailings pond and the construction of the discharge pipeline following the receipt of the environmental permits inMay 2020 , which will increase the processing volume to 2.0 million tonnes per annum - Meliadine – An addition of approximately
$13 million in development capital expenditures to purchase pipe for the proposed waterline in order to execute the project quickly once permitting is complete - Amaruq – An addition of approximately
$12 million in development capital expenditures;$7 million related to the restart of the Amaruq underground project and$5 million to accelerate the stripping of the IVR pit to enhance production flexibility in 2021
Total pre-commercial production gold sales from the Barnat deposit at Canadian Malartic and anticipated pre-commercial production and gold sales from the Tiriganiaq open pit at Meliadine and from the IVR pit at Amaruq are incorporated in, and netted against, the total 2020 capital expenditure forecast. As a result, some variability is likely, depending on the timing of the achievement of commercial production at these projects, prevailing gold prices and foreign exchange rates.
The following table sets out capital expenditures (including sustaining capital) in the third quarter and the first nine months of 2020.
Capital Expenditures | |||||||
(In thousands of US dollars) | |||||||
Three Months Ended | Nine Months Ended | ||||||
Sustaining Capital | |||||||
$ | 26,068 | $ | 57,781 | ||||
Canadian Malartic mine | 13,477 | 33,866 | |||||
20,711 | 49,775 | ||||||
Meliadine mine | 10,725 | 30,011 | |||||
Kittila mine | 8,579 | 27,341 | |||||
4,893 | 17,278 | ||||||
4,810 | 11,947 | ||||||
Creston Mascota mine | — | — | |||||
La India mine | 1,077 | 9,307 | |||||
$ | 90,340 | $ | 237,306 | ||||
$ | 11,314 | 20,679 | |||||
Canadian Malartic mine | (6,606) | 745 | |||||
15,064 | 48,981 | ||||||
Amaruq underground project | 7,952 | 18,598 | |||||
Meliadine mine | 29,694 | 63,829 | |||||
Kittila mine | 43,933 | 113,066 | |||||
3,989 | 9,096 | ||||||
1,337 | 2,433 | ||||||
Creston Mascota mine | — | — | |||||
La India mine | 2,905 | 4,928 | |||||
Other | 228 | 14,234 | |||||
$ | 109,810 | $ | 296,589 | ||||
Total Capital Expenditures | $ | 200,150 | $ | 533,895 |
2020 Gold Production and Cost Guidance Unchanged
Gold production guidance for 2020 is unchanged at 1.68 to 1.73 million ounces (including pre-commercial production of gold ounces from the Barnat deposit at Canadian Malartic, the Tiriganiaq open pit at Meliadine and the IVR pit at Amaruq). The Company anticipates that total cash costs per ounce and AISC per ounce for 2020 will continue to be in the range of
Previous gold production guidance for 2021 and 2022 remains unchanged with a mid-point of 2.05 million and 2.10 million ounces, respectively. Full production and cost guidance will be updated with the results for the year-end and fourth quarter of 2020 in
Taxes
For the fourth quarter of 2020, the Company anticipates the overall effective tax rate to be at the higher end of the range of approximately 40% to 45%, considering current margins. As previously announced, the Company anticipates the overall full year effective tax rate for 2020 to be approximately 40% to 45%.
Dividend Record and Payment Dates for the Third Quarter of 2020
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of
Expected Dividend Record and Payment Dates for fiscal 2020
Record Date | Payment Date |
*Declared |
Dividend Reinvestment Plan
Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
COVID-19 Update
From the early days of the outbreak of the COVID-19 pandemic, the Company implemented extraordinary measures with a constant focus on protecting the health and safety of its employees, on protecting and supporting the communities in which it operates and on protecting its operations. In the third quarter of 2020, the Company further enhanced the protocols put in place and significantly increased its testing capacity, maintained its transparent communication with employees and continued its efforts to strengthen relationships with local communities.
As of
Of the 123 employees who have tested positive for COVID-19, 105 employees have recovered and the Company continues to follow-up closely on the health status of the 18 employees that have not yet recovered. Of these 18 cases, one employee required hospitalization and the other 17 employees are experiencing mild symptoms and are isolating at home.
Region | Total Positive | Detected Offsite | Detected by the | Recovered Cases |
2 | 1 | 1 | 2 | |
5 | 2 | 3 | 2 | |
Abitibi | 6 | 6 | — | 5 |
91 | 9 | 82 | 82 | |
Exploration | 19 | 2 | 17 | 14 |
Sub-Total | 123 | 20 | 103 | 105 |
A breakdown of the ongoing efforts to manage COVID-19 at each site is detailed in the Appendix.
Agnico Eagle will continue to maintain high standards and strive to provide a healthy and safe working environment at all its operations. The Company will continue to monitor the situation closely to respond promptly as needed.
Senior Management Changes
As we continue to position Agnico Eagle for the future, the following changes to our senior management team were made as of
Transitioning to his retirement at the end of 2020,
Third Quarter 2020 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on
Via Webcast:
A live audio webcast of the conference call will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-647-427-7450 or toll-free 1-888-231-8191. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access code 3373237. The conference call replay will expire on
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
NORTHERN BUSINESS REVIEW
ABITIBI REGION,
Agnico Eagle is currently
On
The 100% owned LaRonde mine in northwestern
Three Months Ended | Three Months Ended | |||||
Tonnes of ore milled (thousands of tonnes) | 769 | 764 | ||||
Tonnes of ore milled per day | 8,359 | 8,304 | ||||
Gold grade (g/t) | 4.27 | 4.56 | ||||
Gold production (ounces) | 100,180 | 107,102 | ||||
Production costs per tonne (C$) | $ | 137 | $ | 113 | ||
Minesite costs per tonne (C$) | $ | 99 | $ | 103 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 775 | $ | 606 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 476 | $ | 483 |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily due to the timing of unsold concentrate inventory, partially offset by lower minesite costs per tonne as a higher proportion of tonnes mined and milled were sourced from the lower cost LZ5. Production costs per ounce in the third quarter of 2020 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Minesite costs per tonne6 in the third quarter of 2020 decreased when compared to the prior-year period primarily from lower production and service costs as a higher proportion of mined and processed ore were sourced from LZ5. Total cash costs per ounce in the third quarter of 2020 decreased when compared to the prior-year period due to lower minesite costs per tonne, partially offset by lower gold production and lower by-product revenues from lower zinc and copper production as per the planned mining sequence.
Gold production in the third quarter of 2020 decreased when compared to the prior-year period primarily as a higher proportion of ore milled were sourced from the lower-grade LZ5 as a result of the planned mining sequence.
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6 | Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance" below |
Nine Months Ended | Nine Months Ended | |||||
Tonnes of ore milled (thousands of tonnes) | 1,935 | 2,195 | ||||
Tonnes of ore milled per day | 7,062 | 8,040 | ||||
Gold grade (g/t) | 4.13 | 4.33 | ||||
Gold production (ounces) | 244,184 | 290,280 | ||||
Production costs per tonne (C$) | $ | 111 | $ | 117 | ||
Minesite costs per tonne (C$) | $ | 104 | $ | 107 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 658 | $ | 666 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 552 | $ | 516 |
Production costs per tonne in the first nine months of 2020 decreased when compared to the prior-year period primarily due to the timing of unsold concentrate inventory and lower underground production and service costs as a higher proportion of mined and processed tonnes were sourced from LZ5, partially offset by lower throughput levels mostly related to the suspension of operations in the period. Production costs per ounce in the first nine months of 2020 decreased when compared to the prior-year period due to the reasons described above, partially offset by lower gold production.
Minesite costs per tonne in the first nine months of 2020 decreased when compared to the prior-year period primarily from lower production and service costs as a higher proportion of mined and processed ore was sourced from LZ5, partially offset by lower throughput levels mostly related to the suspension of operations in the period. Total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to lower gold production as a result of the suspension of operations in the period and lower by-product revenues as per the planned mining sequence, partially offset by lower minesite costs per tonne.
Gold production in the first nine months of 2020 decreased when compared to the prior-year period primarily due to the government mandated suspension of operations (LaRonde mill circuit from
Mining activities in the West mine area progressed ahead of schedule in the third quarter of 2020. The West mine area contributed approximately 12% of the tonnage mined at the
The good performance in the West mine area is partially a result of the automation strategy that helped improve productivity and reduced employee exposure to seismicity. Since
With the completion of ground support reinforcement of the main infrastructure in the West mine area, the LaRonde team is working on adapting the ground support methods on production levels. The adjustments in the mining methods and mining sequence implemented earlier in the year have resulted in lower seismic frequency in 2020.
Infrastructure continues to be developed to provide further access to mine LaRonde 3 (below Level 311). Construction of the 308 level East mine cooling plant is ongoing and completion is expected in the fourth quarter of 2020.
At Zone LR11-3 (which is at the past producing Bousquet 2 mine) development continues on the access ramp from level 146 of the LaRonde mine, with 288 metres completed in the third quarter of 2020. Dewatering of the previously mined area and the rehabilitation of the ramp to level 9 are on-going. The ramp from level 146 is expected to reach the zone in mid-2021, and production activities are expected to begin in 2022. As of
The successful implementation of automated mining techniques at LZ5 has resulted in a consistent improvement in productivity. In 2020, 12% of the tonnage was mucked and hauled remotely to surface, slightly below the 15% target. However, the forecasted production rate of 3,000 tpd was achieved in the third quarter of 2020 and is expected to be sustained in the fourth quarter of 2020 and in 2021. Further productivity gains are expected as the LZ5 automation team continues optimizing the automated mining techniques.
Given the success in mining the upper portions of the LZ5 deposit (from surface to 330 metres), mining activities have been extended to 480 metres starting in 2020. The Company is also evaluating the potential to develop deeper portions of LZ5 (480 metres to 700 metres) and potentially mine portions of the neighbouring Ellison property from the LZ5 underground infrastructure.
Exploration Drilling in LaRonde 3's East Mine Area Confirms and Expands New High Grade 20N
A primary target of exploration drilling at the
The discovery of the 20N
In contrast to the gold-rich mineral reserves and mineral resources seen in the massive sulphide lenses in the East mine and West mine areas immediately to the northwest at the same depth, most of the drill intercepts in the 20N
Selected recent drill results from the 20N
Recent exploration drill results from 20N
Drill hole | From | To | Depth of | Estimated | Gold grade | Silver | Copper | Zinc | Lead |
LR-302-012 | 430.1 | 442.2 | 3,393 | 2.8 | 8.4 | 101 | 0.57 | 13.3 | 0.3 |
LR-302-013** | 213.8 | 226.0 | 3,148 | 2.9 | 3.1 | 138 | 0.10 | 14.6 | 0.4 |
LR-302-014A | 363.9 | 376.0 | 3,327 | 2.8 | 1.6 | 51 | 0.35 | 11.2 | 0.2 |
LR-314-013 | 408.9 | 418.9 | 3,406 | 5.7 | 5.2 | 111 | 0.91 | 1.2 | 0.0 |
LR-314-015** | 373.5 | 380.0 | 3,344 | 3.7 | 2.5 | 221 | 0.71 | 11.9 | 1.2 |
*Holes for the 20N |
**Holes LR-302-013 and LR-314-015 have not yet completed QA/QC; check assays are underway. |
[LaRonde ComplexComposite– Longitudinal Section]
Results from five holes drilled into the 20N
Hole LR-302-013 extended the upper portion of the zone by 150 metres to the east and at a shallower depth than previously released hole LR-302-0101, and intersected 3.1 g/t gold, 138 g/t silver, 0.10% copper, 14.6% zinc and 0.4% lead over 2.9 metres at 3,148 metres depth.
Approximately 190 metres below hole LR-302-013, two holes confirmed and extended the zone by approximately 200 metres to the east, with hole LR-302-014A intersecting 1.6 g/t gold, 51 g/t silver, 0.35% copper, 11.2% zinc and 0.2% lead over 2.8 metres at 3,327 metres depth and hole LR-314-015 intersecting 2.5 g/t gold, 221 g/t silver, 0.71% copper, 11.9% zinc and 1.2% lead over 3.7 metres at 3,344 metres depth.
The two deepest holes drilled to date in the new zone extended it by approximately 200 metres to 3,400 metres depth. Both holes featured high-grade gold in addition to significant copper, zinc and silver values: hole LR-302-012 intersected 8.4 g/t gold, 101 g/t silver, 0.57% copper, 13.3% zinc and 0.5% lead over 2.8 metres at 3,393 metres depth; and hole LR-314-013 intersected 5.2 g/t gold, 111 g/t silver, 0.91% copper and 1.2% zinc over 5.7 metres at 3,406 metres depth.
The results from the two deepest holes suggest gold grades may be increasing with depth in the 20N
Exploration drilling is ongoing in the 20N
The Company is also actively pursuing exploration and development opportunities in other areas of the large
In
All metrics exclude pre-commercial production tonnes and ounces | Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) (100%) | 4,502 | 5,290 | ||||
Tonnes of ore milled per day (100%)** | 59,150 | 57,500 | ||||
Gold grade (g/t) | 1.00 | 1.07 | ||||
Gold production (ounces) | 63,093 | 81,573 | ||||
Production costs per tonne (C$) | $ | 31 | $ | 27 | ||
Minesite costs per tonne (C$) | $ | 29 | $ | 26 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 819 | $ | 644 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 772 | $ | 615 |
*In the third quarter of 2020, the Barnat open pit had 13,305 ounces of pre-commercial gold production. |
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 76 days in the third quarter of 2020. |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily due to lower productivity in the Malartic pit and increased royalty payments resulting from higher realized gold prices, partially offset by higher throughput. Production costs per ounce in the third quarter of 2020 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Minesite costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily due to lower productivity in the Malartic pit and increased royalty payments resulting from higher realized gold prices. Total cash costs per ounce in the third quarter of 2020 increased when compared to the prior-year period due to higher minesite costs per tonne and lower gold production.
Gold production in the third quarter of 2020 decreased when compared to the prior-year period primarily due to lower grades. The higher than anticipated density of historical openings at the bottom of the Malartic pit required an increased use of remote operations and thus reduced the production rate. As a result, lower grade ore from the Malartic pit that was expected to be stockpiled was processed in the mill. Pre-commercial production in the third quarter of 2020 from the Barnat deposit was 13,305 ounces of gold.
All metrics exclude pre-commercial production tonnes and ounces | Nine Months Ended | Nine Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) (100%) | 13,600 | 15,608 | ||||
Tonnes of ore milled per day (100%)** | 54,973 | 57,172 | ||||
Gold grade (g/t) | 0.94 | 1.12 | ||||
Gold production (ounces) | 179,016 | 249,554 | ||||
Production costs per tonne (C$) | $ | 27 | $ | 26 | ||
Minesite costs per tonne (C$) | $ | 27 | $ | 26 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 769 | $ | 615 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 756 | $ | 597 |
*In the first nine months of 2020, the Barnat open pit had 18,930 ounces of pre-commercial gold production. |
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 247 days in the first nine months of 2020. |
Production costs per tonne in the first nine months of 2020 were higher when compared to the prior-year period due to lower throughput levels as a result of the suspension of operations in a portion of the first and second quarters of 2020 and lower productivity in the Malartic pit. Production costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Minesite costs per tonne in the first nine months of 2020 were higher when compared to the prior-year period due to lower throughput levels as a result of the suspension of operations in a portion of the first and second quarters of 2020 and lower productivity in the Malartic pit. Total cash costs per ounce in the first nine months of 2020 increased compared to the prior-year period due to the reasons described above and lower gold production.
Gold production in the first nine months of 2020 decreased when compared to the prior-year period primarily as a result of lower grades and lower throughput. A higher proportion of the ore processed in 2020 was sourced from the lower grade stockpiles to facilitate the production ramp-up following the suspension of operations in the period and to compensate for the limited flexibility in the Malartic pit bottom. The lower throughput was primarily caused by the suspension of the milling operations from
Mining activities at the Barnat deposit progressed ahead of plan due to better productivity than anticipated and commercial production was declared on
At the Malartic pit, the mining sequence offers less flexibility as the footprint of the pit is reduced as the pit deepens. Development of the Barnat mining area is expected to increase mining flexibility going forward. In the fourth quarter of 2020, the Malartic pit is expected to provide approximately 70% of the mill feed. Any production loss from the Malartic pit is expected to be replaced by ore from the lower grade stockpiles.
At the Canadian Malartic mill, two planned shutdowns were completed in the third quarter of 2020. The gyratory main frame was replaced in July and the first cone crusher was replaced in September. Despite the shutdowns, the daily throughput was significantly higher compared to the prior-year period, with the mill recording a monthly throughput of 2,010,180 tonnes in August (including pre-commercial production tonnes). The newly installed advanced process control system and improvements in rock fragmentation have improved the consistency in the daily throughput at the mill.
In mid-2020, the Partnership approved the start of construction of surface infrastructure and an underground exploration ramp into the East Gouldie, Odyssey and
The Partnership expects to complete a preliminary economic assessment of the
The expected increases in mineral resources, particularly at East Gouldie, are anticipated to eventually replace mineral reserves currently being mined at the adjacent Canadian Malartic pit.
Expanded Drill Program at East Gouldie Zone Extends Known Mineralization and Infills High
The Canadian Malartic property, together with the Rand Malartic and Midway properties, cover in excess of 25 kilometres along the
The primary exploration target at Canadian Malartic in 2020 is the
The Partnership's drilling program in 2019 totalled 82,379 metres (100% basis) and allowed for the declaration of an initial inferred mineral resource estimate at East Gouldie of 1.4 million ounces of gold (12.8 million tonnes grading 3.34 g/t gold) (50% basis), as of
Drilling activity in the first nine months of 2020 totalled 77,500 metres (100% basis) with multiple mother holes and wedge cuts, resulting in a total of 44 new pierce points in the
There are currently 12 drill rigs targeting the
Detailed drill results from East Gouldie were last reported in the Company's news release dated
Selected drill intercepts from the
Selected recent drill results from the
Drill hole | Sub-zone* | From | To | Depth of | Estimated | Gold grade | Gold grade |
MEX19-140WB | EG North | 1,497.0 | 1,507.5 | 1,090 | 10.1 | 3.2 | 3.2 |
and | EG South | 1,608.0 | 1,623.0 | 1,145 | 14.3 | 3.7 | 3.7 |
MEX19-151WC | EG North | 1,686.0 | 1,728.0 | 1,472 | 39.3 | 6.9 | 6.3 |
including | 1,698.0 | 1,712.0 | 1,470 | 13.1 | 10.5 | 9.9 | |
MEX19-159 | EG South | 1,822.0 | 1,836.2 | 1,625 | 13.1 | 4.9 | 4.2 |
including | 1,829.9 | 1,836.2 | 1,628 | 5.8 | 9.6 | 8.1 | |
MEX19-159A | EG South | 1,795.0 | 1,820.6 | 1,533 | 24.0 | 7.6 | 6.7 |
including | 1,798.0 | 1,811.0 | 1,531 | 12.2 | 12.0 | 10.3 | |
MEX19-160 | EG North | 1,567.1 | 1,589.8 | 1,091 | 21.3 | 6.9 | 6.3 |
and | Btw EG N&S | 1,596.0 | 1,602.1 | 1,101 | 5.7 | 2.7 | 2.7 |
MEX20-163AW | EG North | 1,207.4 | 1,237.0 | 1,035 | 27.4 | 9.5 | 8.2 |
MEX20-163AWA | EG North | 1,197.0 | 1,217.5 | 1,011 | 20.0 | 8.8 | 7.5 |
MEX20-164 | EG North | 1,886.2 | 1,900.0 | 1,730 | 11.7 | 6.2 | 5.5 |
MEX20-164W | EG North | 1,888.2 | 1,904.4 | 1,696 | 11.9 | 2.6 | 2.6 |
MEX20-166 | EG South | 1,694.0 | 1,718.0 | 1,428 | 22.1 | 5.7 | 5.3 |
MEX20-167 | Mrg EG N&S | 1,627.0 | 1,660.5 | 1,333 | 32.5 | 4.7 | 4.7 |
MEX20-169AW | EG North | 1,924.4 | 1,934.5 | 1,803 | 8.2 | 2.1 | 2.1 |
and | EG South | 1,951.0 | 1,968.0 | 1,826 | 13.8 | 2.0 | 2.0 |
MEX20-170AW | EG North | 1,769.7 | 1,780.0 | 1,559 | 9.4 | 5.4 | 5.4 |
and | EG South | 1,793.3 | 1,799.0 | 1,574 | 5.2 | 2.5 | 2.5 |
and | EG South | 1,802.1 | 1,826.3 | 1,587 | 22.1 | 2.2 | 2.2 |
MEX20-171 | EG North | 1,788.9 | 1,815.0 | 1,627 | 23.5 | 1.8 | 1.8 |
and | EG South | 1,821.0 | 1,860.4 | 1,657 | 35.6 | 2.0 | 2.0 |
MEX20-171WA | EG South | 1,881.0 | 1,892.8 | 1,734 | 10.0 | 2.5 | 2.5 |
MEX20-172A | North of EG | 1,592.0 | 1,598.0 | 1,497 | 5.1 | 3.3 | 3.3 |
and | EG South | 1,959.0 | 1,975.8 | 1,815 | 14.7 | 3.3 | 3.3 |
MEX20-172AW | North of EG | 1,829.0 | 1,856.8 | 1,655 | 25.9 | 5.5 | 5.5 |
and | EG South | 1,898.0 | 1,917.0 | 1,701 | 17.6 | 2.6 | 2.6 |
MEX20-172AWA | EG North | 1,877.5 | 1,885.0 | 1661 | 6.6 | 3.7 | 3.7 |
and | EG South | 1,919.0 | 1,935.5 | 1687 | 14.2 | 9.0 | 7.5 |
MEX20-176 | EG North | 1,337.0 | 1,357.4 | 979 | 20.0 | 3.3 | 3.3 |
MEX20-177 | EG North | 1,377.4 | 1,381.0 | 1,244 | 3.3 | 6.1 | 5.3 |
and | EG South | 1,418.0 | 1,423.3 | 1,276 | 4.8 | 3.3 | 3.3 |
MEX20-178 | Mrg EG N&S | 1,231.6 | 1,272.6 | 1,094 | 36.5 | 6.3 | 6.0 |
MEX20-178W | EG North | 1,230.0 | 1,234.0 | 1,015 | 3.5 | 3.8 | 3.8 |
MEX20-178WA | EG North | 1,242.7 | 1,278.7 | 1,118 | 28.5 | 3.8 | 3.6 |
and | EG South | 1,308.0 | 1,332.3 | 1,167 | 19.2 | 2.6 | 2.6 |
*Sub-zones recognized at |
**Results from the |
[Canadian Malartic and Odyssey – Composite Longitudinal Section]
The ongoing drilling campaign at the
Mineral resource expansion drilling in the upper, western portion of the
Other highlights from expansion drilling at and beyond the outer edges of the
In the eastern, deepest portion of the
Additional expansion drilling has been completed between isolated pockets of mineral resources initially outlined in the 2019 mineral resource estimate, potentially leading to the merging of these pockets into larger, unified mineralized bodies in future mineral resource updates. Highlights from these expansion holes include hole MEX-19-159, which intersected 4.2 g/t gold over 13.1 metres at 1,625 metres depth, including 8.1 g/t gold over 5.8 metres at 1,628 metres depth, between three mineral resource pockets in the lower, middle portion of the zone; hole MEX-20-159A, which intersected 6.7 g/t gold over 24.0 metres at 1,533 metres depth, including 10.3 g/t gold over 12.2 metres at 1,531 metres depth, beneath the lower, middle boundary of the core; and hole MEX-20-166, which intersected 5.3 g/t gold over 22.1 metres at 1,428 metres depth between pockets of mineral resources in the eastern portion of the zone.
In the first nine months of 2020, drilling into the high grade core of the
Due to the ongoing success of the drilling campaign, the Partnership is improving the quality of the mineral resources in the core of the
In regional exploration at Canadian Malartic, 8 drill holes totalling 3,903 metres (100% basis) were completed in the third quarter of 2020 (49 drill holes for 19,824 metres year-to-date, on a 100% basis), mostly targeting the East Amphi deposit, located 3 kilometres northwest of the Canadian Malartic pit, and the Rand Malartic property, adjacent to the east of the Canadian Malartic property.
At East Amphi, drilling totalled 9 holes (6,527 metres) (100% basis) in the first nine months of 2020.
At Rand Malartic, drilling totalled 34 holes (10,498 metres) (100% basis) in the first nine months of 2020 and tested several near-surface targets on the property. Gold mineralization was intersected in the upper extension of the #67 Porphyry and anomalous gold values were found at two new occurrences in the northern half of the property.
Portions of the mineral resources at the East Gouldie,
The 100% owned
Three Months Ended | Three Months Ended | ||||||
Tonnes of ore milled (thousands of tonnes) | 709 | 712 | |||||
Tonnes of ore milled per day | 7,707 | 7,739 | |||||
Gold grade (g/t) | 1.50 | 1.77 | |||||
Gold production (ounces) | 31,008 | 37,142 | |||||
Production costs per tonne (C$) | $ | 41 | $ | 38 | |||
Minesite costs per tonne (C$) | $ | 42 | $ | 38 | |||
Production costs per ounce of gold produced ($ per ounce) | $ | 703 | $ | 546 | |||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 702 | $ | 549 |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily as a result of higher lateral development costs for the
Minesite costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily as a result of higher lateral development costs for the
Gold production in the third quarter of 2020 decreased when compared to the prior-year period primarily from lower grades processed due to a change in the mining sequence as a result of an unplanned shutdown described below, higher dilution than anticipated in secondary stopes and lower grade reconciliation from the
Nine Months Ended | Nine Months Ended | |||||
Tonnes of ore milled (thousands of tonnes) | 1,899 | 2,101 | ||||
Tonnes of ore milled per day | 6,931 | 7,696 | ||||
Gold grade (g/t) | 1.58 | 1.70 | ||||
Gold production (ounces) | 88,033 | 105,921 | ||||
Production costs per tonne (C$) | $ | 41 | $ | 38 | ||
Minesite costs per tonne (C$) | $ | 41 | $ | 38 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 659 | $ | 563 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 653 | $ | 565 |
Production costs per tonne in the first nine months of 2020 increased when compared to the prior-year period due to lower throughput levels as a result of the suspension of operations in a portion of the first and second quarters of 2020 and due to higher lateral development costs for the
Minesite costs per tonne in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Gold production in the first nine months of 2020 decreased when compared to the prior-year period primarily due to the temporary suspension of the mill from
The
The
The new Rail-Veyor maintenance bay was commissioned at the beginning of July giving more operating hours to the Rail-Veyor system and increasing its productivity. Over the third quarter of 2020, the Rail-Veyor hauled an average of 6,328 tpd from the Deep mine and it is expected to operate in the range of 6,500 tpd and 7,000 tpd in the fourth quarter of 2020.
Mining in the
Exploration update – Focus on conversion drilling of the
Exploration at the
Conversion drilling was also completed in the Deep 2 Zone, confirming the grades and continuity of gold mineralization between levels 140 and 150, and providing information that will be used to make a decision in 2021 on extending the ramp down to level 150.
The 100% owned Kirkland Lake project in northeastern
At the property, the Company is evaluating opportunities to develop the Upper Beaver deposit and explore surrounding deposits and mineralized occurrences through exploration programs that feature prospecting, geophysical surveys and diamond drilling.
Exploration activity in the third quarter of 2020 remained focused on mineral resource conversion drilling of the Upper Beaver deposit at depth and near surface, as well as early-stage work and diamond drilling in other areas of the property.
The Upper Beaver deposit is atypical of the Kirkland Lake district. Gold-copper mineralization is mainly hosted in the Upper Beaver alkalic intrusive complex and the surrounding basalts it intruded, and is associated with disseminated pyrite and chalcopyrite, and magnetite-sulphide veining associated with strong magmatic-hydrothermal alteration. The mineralization occurs as elongated tabular bodies that strike northeast, dip steeply northwest and plunge 65 degrees to the northeast. The mineralization has been defined along a 400-metre strike length from surface to a depth of 2,000 metres and it remains open at depth.
The Upper Beaver deposit's probable mineral reserve estimate was 8.0 million tonnes grading 5.43 g/t gold and 0.25% copper (1.4 million ounces of gold and 19,980 tonnes of copper) at underground depths as of
Results from the Kirkland Lake project were last reported in the Company's news release dated
Selected recent intercepts from the Upper Beaver deposit at the Kirkland Lake project are set out in the table below. The pierce points are shown on the
Selected recent exploration drill results from the Upper Beaver deposit at the Kirkland Lake project
Drill hole | Zone | From | To | Depth of | Estimated | Gold grade | Gold grade | Copper |
KLUB20-200W10 | East Porphyry | 1,496.0 | 1,512.0 | 1,333 | 14 | 4.4 | 4.4 | 0.22 |
including | 1,496.0 | 1,500.0 | 1,328 | 3.5 | 6.4 | 6.4 | 0.38 | |
KLUB20-200W11 | Footwall | 1,557.0 | 1573 | 1,370 | 12.8 | 9.4 | 9 | 0.44 |
including | 1,557.0 | 1565 | 1,367 | 6.4 | 14 | 13.1 | 0.62 | |
KLUB20-310AW1 | Footwall | 1,398.3 | 1,419.2 | 1,273 | 10.2 | 4.3 | 4.3 | 0.29 |
including | 1,401.0 | 1,414.8 | 1,272 | 6.7 | 5.6 | 5.6 | 0.36 | |
KLUB20-384EXT | Shallow Basalt | 287 | 297 | 202 | 7 | 5.5 | 5.5 | 0.3 |
and | Shallow Basalt | 322 | 353 | 232 | 21.6 | 3.5 | 3.5 | 0.12 |
including | 331 | 341.9 | 231 | 7.5 | 6.4 | 6.4 | 0.09 | |
including | 349 | 353 | 241 | 2.8 | 5.1 | 5.1 | 0.21 | |
and | Shallow Basalt | 362.5 | 367 | 251 | 3.3 | 7.8 | 7.8 | 0.17 |
KLUB20-561W2 | East Porphyry | 1,284.0 | 1,295.2 | 1,220 | 8.4 | 6.8 | 6.8 | 0.13 |
including | 1,285.0 | 1,289.0 | 1,217 | 3.1 | 17 | 17 | 0.02 | |
KLUB20-561W3 | East Porphyry | 1,286.0 | 1,294.7 | 1,227 | 5.6 | 11.6 | 11.6 | 0.48 |
KLUB20-561W4 | East Porphyry | 1,268.5 | 1,277.5 | 1,199 | 7.8 | 8.8 | 8.8 | 0.4 |
including | 1,274.0 | 1,277.5 | 1,202 | 3 | 13.8 | 13.8 | 0.79 | |
KLUB20-561W5 | East Porphyry | 1,321.0 | 1,342.6 | 1,280 | 13 | 3.5 | 3.5 | 0.49 |
including | 1,320.0 | 1,325.0 | 1,272 | 3 | 6.7 | 6.7 | 0.63 | |
including | 1,332.0 | 1,337.5 | 1,283 | 3.3 | 5.7 | 5.7 | 0.74 |
*Estimated true width values are preliminary. |
**Holes in the shallow basalts and crown pillar at the Upper Beaver deposit use a capping factor of 30 g/t gold. Holes in the Deep East Porphyry and Footwall zones of the Upper Beaver deposit use a capping factor of 90 g/t gold. |
[Kirkland Lake Projects - Local Geology Map]
The aim of the deep drilling program at Upper Beaver in 2020 is to convert inferred mineral resources of the Deep East Porphyry and Footwall zones at depths of 1,200 to 1,400 metres below surface. Multiple targets down-plunge of both zones to approximately 1,600 metres depth have also been added to the program based on recent positive exploration results. The deep drilling has targeted 34 pierce points within these two zones, with results obtained from 18 pierce points to date.
In the deep conversion drilling program in the third quarter of 2020, hole KLUB20-200W11 intersected the central core of the Deep Footwall zone, intersecting 9.0 g/t gold and 0.44% copper over 12.8 metres at 1,370 metres depth, including 13.1 g/t gold and 0.62% copper over 6.4 metres at 1,328 metres depth. This intersection demonstrates the continuity of the gold system at depth. The drill results are consistent with previous modelling and support positive mineral resource conversion within the Deep East Porphyry zone. Follow-up drilling for additional conversion, and possible expansion below this area within the Footwall zone, is planned in the fourth quarter of 2020.
Deep holes KLUB20-561W2, KLUB20-561W3, KLUB20-561W4 and KLUB20-561W5 are branches from the same previously reported pilot hole KLUB20-561W1. New intersections in all four holes (see table above) display consistent mineralization within the Deep Porphyry zone at depths ranging from 1,200 to 1,280 metres, highlighted by hole KLUB20-561W3, located 35 metres east of hole KLUB20-561W1, which intersected 11.6 g/t gold and 0.48% copper over 5.6 metres at 1,227 metres depth.
Hole KLUB20-200W10 intersected the Porphyry zone approximately 40 metres east and down-plunge of a previously released intercept from hole KLUB20-200W9, and intersected 4.4 g/t gold and 0.22% copper over 14.0 metres at 1,333 metres depth, including 6.4 g/t gold and 0.38% copper over 3.5 metres at 1,328 metres depth.
The current deep conversion drilling program at Upper Beaver was expanded in the third quarter of 2020 with the addition of a third drill rig and will continue through the fourth quarter and into 2021.
The shallow conversion drilling program at Upper Beaver is targeting gold-mineralized basalts from surface to 400 metres below surface with the aim of providing more accessible mineral resources during the early stages of a potential mining operation.
From the shallow drilling program in the third quarter of 2020, hole KLUB20-384EXT was drilled to a depth of 444 metres to test the South Contact zone where it intersected 65 metres of an alteration zone with up to 2% chalcopyrite and magnetite mineralization. The hole was highlighted by intersections of 5.5 g/t gold and 0.30% copper over 7.0 metres at 202 metres depth and 3.5 g/t gold and 0.12% copper over 21.6 metres at 232 metres depth, all hosted within the mafic volcaniclastic rocks.
Conversion drilling in the shallow basalts and the crown pillar of the Upper Beaver deposit will continue in the fourth quarter of 2020.
An increase in mineral reserves and mineral resources in the targeted zones would enhance the prospects for development of the project by increasing the level of confidence in key areas of the deposit for a potential future mining operation.
Results from the 2020 exploration program will be incorporated into an updated technical study of Upper Beaver to be completed in 2021.
Agnico Eagle has identified
On
The Company has instituted a number of additional protocols to ensure the continued safety of its employees and the communities. These include:
- Isolation of the mine sites from the communities
- All employees are on site on a voluntary basis
- Increased screening measures for all employees before flying to site
- A new testing facility is being set-up at the Meadowbank site
- All employees and contractors are tested for COVID-19 prior to boarding the planes and placed in isolation on site until the test results are received. In addition, both sites are implementing re-testing of employees 5 days into their rotation to detect people that may have been recently exposed, and the disease was in incubation at time of arrival
The 100% owned
The Amaruq mining operation uses the existing infrastructure at the Meadowbank minesite (mining equipment, mill, tailings, camp and airstrip). Additional infrastructure has also been built at the Amaruq site (truck shop, warehouse, fuel storage and an additional camp facility). Amaruq ore is transported using long haul off-road type trucks to the mill at the Meadowbank site for processing. The Amaruq satellite deposit achieved commercial production on
The second quarter of 2020 started in reduced operating mode due to measures in response to the COVID-19 pandemic. The open pit operation was reduced to 50% capacity in April. Operations were gradually ramped up in May as temporary workers were added to support mining activities. The process plant was on care and maintenance for most of the second quarter of 2020, re-starting on
All metrics exclude pre-commercial production tonnes and ounces | Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 907 | 364 | ||||
Tonnes of ore milled per day** | 9,859 | 10,400 | ||||
Gold grade (g/t) | 2.79 | 1.50 | ||||
Gold production (ounces) | 74,921 | 15,736 | ||||
Production costs per tonne (C$) | $ | 138 | $ | 76 | ||
Minesite costs per tonne (C$) | $ | 139 | $ | 62 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 1,231 | $ | 1,306 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 1,260 | $ | 1,035 |
*Operating statistics for the third quarter of 2020 relate to production from the Amaruq satellite deposit while the operating statistics for the prior-year period relate to production from the Meadowbank mine. In the third quarter of 2019, Amaruq had 33,134 ounces of pre-commercial gold production. |
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 35 days in the third quarter of 2019. |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period, primarily due to higher maintenance costs as major work was completed on mobile equipment and due to transportation costs as production at the
Minesite costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily due to higher maintenance costs as major work was completed on mobile equipment, and due to transportation costs as production at the Complex fully transitioned to Amaruq, partially offset by higher throughput. Total cash costs per ounce in the third quarter of 2020 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production.
Gold production in the third quarter of 2020 increased when compared to the prior-year period due to higher throughput and higher grades, which increased as expected with the deepening of the Amaruq pit. The Amaruq site operated consistently in the third quarter of 2020 at target operating rates, while mill plant availability was higher than planned and mill throughput was increased. In the prior-year period, the
All metrics exclude pre-commercial production tonnes and ounces | Nine Months Ended | Nine Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 1,798 | 1,672 | ||||
Tonnes of ore milled per day** | 6,562 | 7,741 | ||||
Gold grade (g/t) | 2.64 | 1.92 | ||||
Gold production (ounces) | 140,679 | 96,548 | ||||
Production costs per tonne (C$) | $ | 157 | $ | 83 | ||
Minesite costs per tonne (C$) | $ | 155 | $ | 79 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 1,494 | $ | 1,079 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 1,511 | $ | 991 |
*Operating statistics for the first nine months of 2020 relate to production from the Amaruq satellite deposit while the operating statistics for the prior-year period relate to production from the Meadowbank mine. In the first nine months of 2019, Amaruq had 35,281 ounces of pre-commercial gold production. |
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 216 days in the first nine months of 2019. |
Production costs per tonne in the first nine months of 2020 increased when compared to the prior-year period primarily due to higher contractor and maintenance costs, higher transportation costs as production at the
Minesite costs per tonne in the first nine months of 2020 increased when compared to the prior-year period primarily due to the reasons described above. Total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production.
Gold production in the first nine months of 2020 increased when compared to the prior-year period due to higher gold grades as the Amaruq pit deepens and higher throughput levels. Commercial production tonnes were higher in the first nine month of 2020 compared to the prior-year period as a significant portion of the ore processed in 2019 was pre-commercial production. Amaruq declared commercial production on
Third Quarter 2020 Activities
Mining activities at Meadowbank began ramping up in the second quarter of 2020 following a period of reduced activity due to measures taken related to the COVID-19 pandemic. Open pit production has shown consistent performance since the beginning of July, with an average of approximately 3.3 million tonnes mined per month in the third quarter of 2020. Mining activities are expected to remain at similar levels in the fourth quarter of 2020.
In the fourth quarter of 2020, mined grades are expected to improve, and the strip ratio is expected to decline to approximately 10:1 (compared to 11:1 in the third quarter of 2020). The strip ratio in 2021 is expected to further decline to approximately 8:1.
Water management improvements in the pit resulted in higher drilling efficiencies in the third quarter of 2020. Drilling activities also benefited from the commissioning of a new remote production drill in the quarter.
This year's Caribou migration had less impact on the operations than in previous years, largely due to a natural change in the migration route. Given the unpredictability of the seasonal migration, the Company continues to work with government and local stakeholders to ensure that mining activities have a minimal impact on Caribou migration.
Efforts are underway to improve the reliability of the long-haul truck ("LHT") fleet. Poor road conditions have intermittently had an impact on mechanical availability of the fleet. Performance improved significantly in the last three weeks of September, with haulage averaging over 11,000 tpd. Three additional LHT's arrived by barge on the 2020 sealift, bringing the total fleet of LHT's to 26.
A contractor fleet of three 100-tonne trucks and a dedicated loader were deployed late in the third quarter of 2020 to accelerate the development of the IVR pit, and provide additional production flexibility in 2020 and 2021. Pre-commercial production from the IVR pit in the fourth quarter of 2020 is forecast to be approximately 11,000 ounces of gold.
Tonnage of ore milled in the third quarter of 2020 was higher than forecast largely due to better than expected plant availability, and favourable ore characteristics compared to original assumptions. Mill throughput in the fourth quarter of 2020 is expected to be slightly lower than the third quarter of 2020 due to a five day shutdown for scheduled plant maintenance.
Over the course of the third quarter of 2020, the maintenance backlog remained in control, and maintenance activities will remain a key focus in the fourth quarter of 2020, along with improving LHT availability.
In the third quarter of 2020, ramp development was restarted at the Amaruq underground project. Development is expected to reach the ore zone by the end of 2020, and a production decision is expected to be made in 2021. Procurement activities are underway for the 2021 sealift.
Exploration Update – Focus on conversion drilling of the IVR West area
At the Amaruq satellite operation, a conversion drilling program was completed in mid-2020 over a 330-metre-long portion of the IVR West area, located immediately north of the Whale Tail pit and west of the planned IVR pit, to improve confidence in the quality of the mineral resources and potentially add them to the mine's mineral resources. The IVR West area is the location of discovery hole IVR13-004 (drilled in 2013) that led to the recognition of Amaruq's potential to host economic gold mineralization.
Located near
In response to the COVID-19 pandemic, activity levels at Meliadine were reduced from the end of March to early June. The mill was gradually ramped-up through April and May to achieve more normal operating levels in June. The reduction in activities for most of the second quarter of 2020 caused a substantial reduction in production and a corresponding increase in unit production costs. As the Meliadine mine achieved commercial production on
All metrics exclude pre-commercial production tonnes and ounces | Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 368 | 312 | ||||
Tonnes of ore milled per day | 4,000 | 3,391 | ||||
Gold grade (g/t) | 8.16 | 8.19 | ||||
Gold production (ounces) | 94,775 | 78,093 | ||||
Production costs per tonne (C$) | $ | 244 | $ | 234 | ||
Minesite costs per tonne (C$) | $ | 240 | $ | 246 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 706 | $ | 709 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 695 | $ | 746 |
*In the third quarter of 2020, the Tiriganiaq open pit had 1,982 ounces of pre-commercial gold production. |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period due to the timing of unsold inventory and higher royalty costs related to higher realized gold prices, partially offset by higher throughput. Production costs per ounce in the third quarter of 2020 decreased when compared to the prior-year period due to higher gold production, mostly offset by the higher production costs per tonne as described above.
Minesite costs per tonne in the third quarter of 2020 decreased when compared to the prior-year period primarily due to higher throughput improving the mine service and mill production costs per tonne, partially offset by higher royalty costs related to higher realized gold prices. Total cash costs per ounce in the third quarter of 2020 decreased when compared to the prior-year period due to higher gold production and lower minesite costs per tonne.
Gold production in the third quarter of 2020 increased when compared to the prior-year period primarily due to higher throughput as Meliadine delivered strong performance over the quarter, reaching the 4,150 tpd mill rate following scheduled shutdowns for corrective work and upgrades. In the third quarter of 2019, the site was still ramping-up mining and processing activities.
In the third quarter of 2020, Meliadine had strong operating performance, delivering record quarterly production despite shutdowns related to mill maintenance and upgrade activities.
In the third quarter of 2020, underground mining performance continued to improve with an increase in drilled ore inventory and an increase in ore mucked as new mining equipment was commissioned. Mining of the first two stopes in the higher-grade
In the third quarter of 2020, the mill maintained average daily throughput of 4,150 tonnes despite several planned shutdowns for plant modifications associated with the planned mill expansion. Major work included replacement of the apron feeder, filter press upgrades and modifications to the Grizzly feeder. During the planned shutdowns the buggy bin was used to continue to feed the mill at a reduced rate. Milling rates are expected to average approximately 4,600 tpd in the fourth quarter of 2020, which is in line with the Phase 2 expansion plan outlined in the Company's news release dated
All metrics exclude pre-commercial production tonnes and ounces | Nine Months Ended | Nine Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 1,012 | 447 | ||||
Tonnes of ore milled per day** | 3,693 | 3,216 | ||||
Gold grade (g/t) | 7.08 | 7.41 | ||||
Gold production (ounces) | 224,125 | 109,506 | ||||
Production costs per tonne (C$) | $ | 243 | $ | 246 | ||
Minesite costs per tonne (C$) | $ | 243 | $ | 252 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 814 | $ | 760 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 822 | $ | 776 |
*In the first nine months of 2020, the Tiriganiaq open pit had 1,982 ounces of pre-commercial gold production. In the first nine months of 2019, Meliadine had 47,281 ounces of pre-commercial gold production. |
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 139 days in the first nine months of 2019. |
Production costs per tonne in the first nine months of 2020 were
At the Tiriganiaq open pit, overburden stripping has been accelerated with a contractor to provide additional mining flexibility for both tonnes and grade in 2021. Total pre-commercial gold production at Tiriganiaq in 2020 is expected to be approximately 11,200 ounces.
Water Management
Saline Water Discharge
The Company received final approval on
Permitting Update for Saline Water Discharge Line
On
The Company is now in the technical phase of the application and the deadline for technical comments to be received is
The Company forecasts that it has adequate surface storage capacity for saline water until 2023.
Meliadine Water License Amendment
The Company submitted the application for a Water License Amendment on
For all applications, the Company is committed to continuing to pursue consultation and collaboration opportunities with the local community and
Exploration Update – Conversion Drilling at Discovery Satellite Deposit on Track to Add to Mineral Reserves at Year-End
A drilling campaign was completed mid-year at the Discovery satellite gold deposit, located 17 km east-southeast of Tiriganiaq, which was last drilled in 2014. At the end of the third quarter of 2020, a total of 11,150 metres had been drilled at Discovery for conversion, geotechnical and exploration purposes.
The aim of the 2020 exploration program at Discovery is to generate sufficient information to convert portions of the deposit's indicated mineral resources and inferred mineral resources into mineral reserves by year-end 2020, which will be incorporated into a preliminary technical study of Discovery to be completed in early 2021.
Results from the current program are confirming the Company's previous geological interpretation of the deposit and suggest the potential for a satellite operation at Discovery that would provide ore to the existing mill at Meliadine.
Elsewhere on the Meliadine property during 2020, exploration drilling in the deeper central and western portions of the Tiriganiaq deposit has confirmed the presence of mineralized iron formations and quartz veins at depth, and conversion drilling at the mine's Wesmeg deposit has confirmed the presence of inferred mineral resources.
Agnico Eagle's Kittila mine in
Unlike other jurisdictions in which the Company operates,
Kittila – Strong Underground Production Continues; Mill Expansion Progressing Ahead of Schedule; Sisar Drilling Shows Potential to Extend Mineralization Laterally and at Depth
The 100% owned Kittila mine in northern
Three Months Ended | Three Months Ended | |||||
Tonnes of ore milled (thousands of tonnes) | 429 | 507 | ||||
Tonnes of ore milled per day | 4,663 | 5,511 | ||||
Gold grade (g/t) | 4.38 | 4.23 | ||||
Gold production (ounces) | 53,149 | 61,343 | ||||
Production costs per tonne (EUR) | € | 87 | € | 79 | ||
Minesite costs per tonne (EUR) | € | 83 | € | 78 | ||
Production costs per ounce of gold produced ($ per ounce) | $ | 861 | $ | 725 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 813 | $ | 725 |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period due to lower throughput levels as the mill was shutdown on
Minesite costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily due to lower throughput levels as the mill was shut down on
Gold production in the third quarter of 2020 decreased when compared to the prior-year period primarily due to lower throughput, partially offset by higher gold grades as anticipated by the mining sequence. The Kittila operation continued delivering strong performance in the third quarter of 2020 but the mill was shut down as planned on
Nine Months Ended | Nine Months Ended | |||||||
Tonnes of ore milled (thousands of tonnes) | 1,349 | 1,123 | ||||||
Tonnes of ore milled per day | 4,923 | 4,114 | ||||||
Gold grade (g/t) | 4.33 | 4.16 | ||||||
Gold production (ounces) | 163,069 | 130,756 | ||||||
Production costs per tonne (EUR) | € | 86 | € | 83 | ||||
Minesite costs per tonne (EUR) | € | 82 | € | 75 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 812 | $ | 796 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 776 | $ | 728 |
Production costs per tonne in the first nine months of 2020 increased when compared to the prior-year period primarily due to cost pressures in contracted development and hauling, higher ground support requirements, higher royalty payments related to higher realized gold prices and the timing of inventory, partially offset by higher throughput levels. Production costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production from higher throughput levels and higher grades.
Minesite costs per tonne in the first nine months of 2020 increased when compared to the prior-year period due to cost pressures in contracted development and hauling, higher ground support requirements, and higher royalty payments related to higher realized gold prices, partially offset by higher throughput levels. Total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production.
Gold production in the first nine months of 2020 increased when compared to the prior-year period as Kittila operated at close to record quarterly production levels in the second and third quarters of 2020, while a scheduled 58-day mill shutdown was carried out in the second quarter of 2019 to allow for full autoclave relining, and due to higher grades as anticipated by the mining sequence.
The Kittila mine continued delivering strong performance in the third quarter of 2020 and exceeded the forecasted tonnage and gold production in the underground mine and mill. The mill expansion is progressing ahead of schedule and the final tie-in shutdown started on
Two strategically important environmental construction projects, the NP4 tailings pond and the discharge pipeline, were accelerated and will be ready for commissioning in the fourth quarter of 2020. The completion of these projects are part of the plan to increase the mill production rate to 2.0 million tonnes per annum.
Work continued on the Kittila shaft project in the third quarter of 2020, though at a lower rate than forecast. Project execution remains challenging under COVID-19 restrictions and productivity is lower than planned. Local resources have been added to the shaft sinking contractor (Procon) team and additional residence permit applications for Procon employees are in process. Because of these challenges, commissioning is now expected to be completed in the first half of 2022. With the delay in construction, combined with higher than expected costs from the shaft sinking, the rock handling system and the contracted underground development group, the Kittila expansion project is now forecast to cost between 190 to
Drilling Confirms and Extends Main and Sisar Zones in Suuri, Roura and Rimpi Areas
Exploration at the Kittila mine is focused on extending the Main and Sisar zones northward, southward and at depth in the Suuri, Roura and Rimpi areas to increase the mineral reserves in the large orebody. Sisar is subparallel to and 50 to 300 metres east of the main Kittila mineralization.
As of
Results from the exploration program at Kittila were last reported in the Company's news release dated
Selected recent drill results from the Kittila mine are set out in the table below, and drill hole collar coordinates are in a table in the Appendix. Pierce points are shown on the Kittila – Composite Longitudinal Section. All intercepts reported for the Kittila mine show uncapped gold grades over estimated true widths, based on a current geological interpretation that is being updated as new information becomes available with further drilling.
Selected recent drill results from the Main and Sisar zones in the Suuri, Roura and Rimpi areas at the Kittila mine
Drill hole | Zone | From | To | Depth of | Estimated | Gold grade |
RIE19-702H | Sisar Deep | 965.0 | 971.8 | 1,626 | 4.4 | 7.3 |
RIE19-702J | Main Rimpi | 634.0 | 642.0 | 1,413 | 5.3 | 2.8 |
RUG20-510 | Main Roura | 188.0 | 197.1 | 987 | 8.7 | 5.9 |
RUG20-515 | Main Roura | 139.5 | 143.5 | 930 | 3.8 | 3.5 |
RUG20-516 | Main Roura | 132.0 | 142.0 | 961 | 9.8 | 5.0 |
RUG20-517 | Main Roura | 147.0 | 159.0 | 941 | 11.1 | 7.7 |
RUG20-518 | Main Roura | 142.4 | 156.0 | 986 | 12.8 | 6.0 |
including | Main Roura | 149.0 | 156.0 | 986 | 6.6 | 8.5 |
and | Sisar Top | 203.0 | 215.0 | 982 | 11.3 | 7.3 |
RUG20-519 | Main Roura | 138.0 | 153.0 | 1,001 | 14.2 | 6.4 |
and | Sisar Top | 209.0 | 213.3 | 1,002 | 4.1 | 9.2 |
RIE20-603 | Main Rimpi | 43.0 | 63.0 | 1,005 | 19.4 | 5.1 |
including | 43.0 | 49.0 | 1,006 | 5.8 | 7.6 | |
and | Main Rimpi | 72.0 | 77.0 | 1,004 | 4.9 | 6.9 |
RIE20-605 | Main Rimpi | 82.0 | 86.0 | 1,041 | 2.8 | 3.8 |
and | Main Rimpi | 104.0 | 109.2 | 1,050 | 3.6 | 3.5 |
RIE20-606 | Main Rimpi | 80.3 | 96.0 | 1,059 | 10.2 | 6.1 |
and | Main Rimpi | 103.0 | 109.0 | 1,069 | 4.0 | 7.8 |
[
Conversion drilling in the Roura area is continuing with one drill rig. Highlights include holes RUG20-510, RUG20-515, RUG20-516, RUG20-517 and RUG20-519, which showed high gold grades over significant widths in the
Exploration drilling into the Main and Sisar zones in the Rimpi area is ongoing with two drill rigs. Hole RIE19-702J intersected 2.8 g/t gold over 5.3 metres at 1,413 metres depth, confirming the
Drilling in the Rimpi area at shallower depths between approximately 1,005 and 1,070 metres showed positive results and confirmed the
These recent intercepts of the
In 2020, the Company expects to spend
The primary goal of this program is to further explore Kittila's mineral reserve and mineral resource potential and to demonstrate the economic potential of the
The Company anticipates that this year's drilling program will replace the mineral reserves mined at Kittila in 2020 in the mineral reserves and mineral resources estimated at
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in Mexico. These operations have been a solid source of precious metals production (gold and silver) with stable operating costs and strong free cash flow since 2009.
On
The 100% owned
Three Months Ended | Three Months Ended | |||||||
Tonnes of ore processed (thousands of tonnes) | 558 | 519 | ||||||
Tonnes of ore processed per day | 6,065 | 5,641 | ||||||
Gold grade (g/t) | 1.89 | 2.22 | ||||||
Gold production (ounces) | 30,937 | 34,832 | ||||||
Production costs per tonne | $ | 59 | $ | 67 | ||||
Minesite costs per tonne | $ | 61 | $ | 67 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 1,071 | $ | 995 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 677 | $ | 745 |
Production costs per tonne in the third quarter of 2020 decreased when compared to the prior-year period primarily due to the weakening of the Mexican peso and higher throughput levels, partially offset by higher ground support requirements and higher royalty payments related to higher realized gold and silver prices. Production costs per ounce in the third quarter of 2020 increased when compared to the prior-year period due to lower gold production, partially offset by the lower production costs as described above.
Minesite costs per tonne in the third quarter of 2020 decreased when compared to the prior-year period due to the weakening of the Mexican peso and higher throughput levels, partially offset by higher ground support requirements and higher royalty payments related to higher realized gold and silver prices. Total cash costs per ounce in the third quarter of 2020 decreased when compared to the prior-year period due to the reasons described above and higher by-product revenues from higher realized silver prices, partially offset by lower gold production.
Gold production in the third quarter of 2020 decreased when compared to the prior-year period primarily due to lower grades related to the adjustment of the
Nine Months Ended | Nine Months Ended | |||||||
Tonnes of ore processed (thousands of tonnes) | 1,252 | 1,495 | ||||||
Tonnes of ore processed per day | 4,569 | 5,476 | ||||||
Gold grade (g/t) | 2.08 | 2.62 | ||||||
Gold production (ounces) | 78,127 | 119,302 | ||||||
Production costs per tonne | $ | 70 | $ | 64 | ||||
Minesite costs per tonne | $ | 64 | $ | 65 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 1,117 | $ | 801 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 740 | $ | 603 |
Production costs per tonne in the first nine months of 2020 increased when compared to the prior-year period primarily due to higher costs associated with open pit mining of the Sinter pit, higher underground development and ground support requirements, lower throughput levels, higher royalty payments related to higher realized gold and silver prices and by the timing of inventory, partially offset by the weakening of the Mexican peso. Production costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Minesite costs per tonne in the first nine months of 2020 were essentially the same when compared to the prior-year period due to higher costs associated with open pit mining of the Sinter pit, higher underground development and ground support requirements, lower throughput levels, and higher royalty payments related to higher realized gold and silver prices, partially offset by the weakening of the Mexican peso. Total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Gold production in the first nine months of 2020 decreased when compared to the prior-year period due to lower throughput levels related to the temporary suspensions of operations in the second quarter of 2020 and due to lower grades related to the adjustment of the
A revised mining plan has been adopted which balances a reduced tonnage from
At the Cubiro deposit, located 9 kilometres northwest of the
At the Sinter deposit, located approximately 2 kilometres northwest of the
High-Grade Gold Mineralization at Cubiro Deposit Confirmed and Extended by Underground Drilling;
Exploration in the third quarter of 2020 focused on three targets: the Cubiro deposit; the
The Company drilled 74 exploration holes (12,553 metres) on the
Exploration results from
As of
As of
The above mineral reserves and mineral resources are included in the
Selected recent drill results from the Cubiro deposit and the Reyna de Plata and
Selected recent exploration drill results from the Cubiro deposit and the Reyna de Plata and
Drill Hole | Deposit | From | To | Depth of | Estimated | Gold grade | Gold | Silver grade | Silver |
CBUG20-035 | Cubiro | 52.2 | 55.0 | 251 | 2.8 | 4.7 | 4.7 | 27 | 27 |
CBUG20-036 | Cubiro | 63.4 | 69.6 | 215 | 4.4 | 5.2 | 3.0 | 15 | 15 |
and | 76.8 | 89.5 | 214 | 9.0 | 2.0 | 2.0 | 30 | 30 | |
CBUG20-037 | Cubiro | 117.6 | 135.2 | 122 | 17.2 | 2.3 | 2.3 | 11 | 11 |
including | 125.7 | 133.0 | 127 | 7.2 | 3.2 | 3.2 | 16 | 16 | |
CBUG20-040 | Cubiro | 201.0 | 223.2 | 116 | 22.2 | 2.7 | 2.1 | 28 | 28 |
including | 201.0 | 207.7 | 123 | 6.7 | 5.5 | 3.7 | 65 | 65 | |
CBUG20-042 | Cubiro | 50.0 | 60.4 | 192 | 6.6 | 5.0 | 4.0 | 29 | 29 |
CBUG20-045 | Cubiro | 121.0 | 124.4 | 286 | 3.4 | 4.1 | 4.1 | 5 | 5 |
CBUG20-048 | Cubiro | 224.3 | 247.7 | 90 | 14.4 | 3.4 | 3.4 | 17 | 17 |
including | 229.3 | 235.2 | 94 | 3.7 | 10.1 | 5.7 | 38 | 38 | |
CBUG20-049 | Cubiro | 255.0 | 261.0 | 77 | 3.4 | 16.1 | 8.1 | 119 | 119 |
CBUG20-050 | Cubiro | 164.3 | 168.5 | 198 | 3.6 | 3.9 | 3.9 | 21 | 21 |
CBUG20-054 | Cubiro | 119.9 | 123.0 | 288 | 4.0 | 3.4 | 3.4 | 5 | 5 |
CBUG20-057 | Cubiro | 201.2 | 208.3 | 114 | 6.2 | 4.4 | 4.3 | 23 | 23 |
CBUG20-058 | Cubiro | 79.3 | 85.2 | 196 | 5.2 | 10.2 | 2.6 | 24 | 20 |
60.5 | 64.6 | 54 | 4.0 | 5.2 | 5.2 | 39 | 39 | ||
81.0 | 91.5 | 77 | 9.5 | 5.4 | 4.9 | 41 | 41 | ||
38.3 | 41.0 | 39 | 2.6 | 3.5 | 3.2 | 31 | 31 | ||
44.3 | 50.5 | 49 | 5.9 | 2.3 | 2.3 | 241 | 168 | ||
19.0 | 26.0 | 30 | 6.6 | 1.4 | 1.4 | 120 | 100 | ||
18.0 | 26.7 | 21 | 8.4 | 1.8 | 1.8 | 19 | 19 | ||
61.5 | 67.0 | 88 | 4.8 | 3.9 | 2.5 | 17 | 17 | ||
16.0 | 25.5 | 23 | 8.9 | 2.3 | 2.3 | 94 | 94 | ||
including | 18.0 | 20.8 | 23 | 2.6 | 2.7 | 2.7 | 111 | 111 | |
138.8 | 146.3 | 144 | 6.5 | 2.1 | 2.1 | 25 | 25 | ||
184.0 | 197.2 | 168 | 10.9 | 1.9 | 1.6 | 15 | 15 | ||
including | 189.8 | 194.4 | 168 | 3.9 | 4.9 | 3.8 | 32 | 32 | |
126.8 | 159.0 | 150 | 27.9 | 1.1 | 1.1 | 18 | 18 | ||
including | 126.8 | 130.2 | 127 | 3.0 | 1.7 | 1.7 | 27 | 27 | |
including | 149.3 | 158.0 | 158 | 7.6 | 2.3 | 2.3 | 26 | 26 |
Cut-off value 0.30 g/t gold, maximum 3.0 metres internal dilution. |
*Holes at the Cubiro satellite deposit use a capping factor of 10 g/t gold and 200 g/t silver. |
[
[Cubiro– Composite Longitudinal Section]
The Cubiro deposit is made up of multiple gold and silver bearing white quartz-calcite veins (with barite and minor sulphides) up to 30 metres wide that strike northwest for approximately 1,100 metres, and dip steeply to the southwest. These veins are enveloped in wider swarm-like vein systems, including breccias and stockworks, and demonstrate pinch-and-swell characteristics. The Cubiro deposit remains open in all directions.
In the third quarter of 2020, drilling was carried out from underground platforms at the northwestern limits of the ramp, targeting the central portion of the Cubiro structure with the aim of extending and validating the lateral continuity of previously reported wide, high-grade gold and silver intercepts.
The drilling has extended the high-grade portion of the Cubiro structure to 400 metres along strike and to an average of 175 metres in vertical extent above the ramp. There are indications that mineralization may reopen at depth below the current ramp; this is expected to be investigated during the fourth quarter.
In the third quarter of 2020, drilling extended Cubiro's high-grade core at ramp level by 75 metres to the northwest, with highlights within this extension that included: hole CBUG20-045, which intersected 4.1 g/t gold and 5 g/t silver over 3.4 metres at 286 metres depth in the northwesternmost hole drilled to date at ramp level; hole CBUG20-035, which intersected 4.7 g/t gold and 27 g/t silver over 2.8 metres at 251 metres depth; and hole CBUG20-054, which intersected 3.4 g/t gold and 5 g/t silver over 4.0 metres at 288 metres depth.
Additional holes intersected the high-grade structure approximately 40 to 80 metres above the ramp level at its most northwestern extent over an approximate 175-metre strike length. Highlights included, from northwest to southeast: hole CBUG20-057, which intersected 4.3 g/t gold and 23 g/t silver over 6.2 metres at 114 metres depth; hole CBUG20-050, which intersected 3.9 g/t gold and 21 g/t silver over 3.6 metres at 198 metres depth; hole CBUG20-042, which intersected 4.0 g/t gold and 29 g/t silver over 6.6 metres at 192 metres depth; and hole CBUG20-037, which intersected 2.3 g/t gold and 11 g/t silver over 17.2 metres at 122 metres depth.
The high-grade structure was further intersected approximately 130 to 200 metres above the latest ramp development and within 125 metres from surface. Highlights include: hole CBUG20-049, which returned the highest gold and silver grades over significant widths recorded at Cubiro in the third quarter of 2020, intersecting 8.1 g/t gold and 119 g/t silver over 3.4 metres at 77 metres depth; hole CBUG20-048, which intersected 3.4 g/t gold and 17 g/t silver over 14.4 metres at 90 metres depth, including 5.7 g/t gold and 38 g/t silver over 3.7 metres at 94 metres depth; and hole CBUG20-040, which intersected 2.1 g/t gold and 28 g/t silver over 22.2 metres at 116 metres depth, including 3.7 g/t gold and 65 g/t silver over 6.7 metres at 123 metres depth.
Work at Cubiro in the fourth quarter of 2020 will focus on continued infill drilling as well as mineral resource expansion drilling to the northwest and down dip in tandem with ramp development.
In response to the continued positive exploration results, the drilling program at Cubiro for 2020 has been expanded to 18,000 metres from an originally planned 10,000 metres, with 10,902 metres drilled in the first nine months of 2020. Another 200 metres of ramp advancement towards the northwest is planned for the fourth quarter of 2020.
These latest results will be incorporated into an initial mineral reserve estimate for Cubiro at year-end that, combined with other developments on the property, are expected to replace ore mined at
Successful mineral resource expansion and conversion at Cubiro could potentially lead to underground mine development that would contribute additional ore to be processed at the existing
At
At shallow depths, hole
At greater depths in the northwestern portion of the
At
Step-out hole
Exploration drilling will continue at Reyna de Plata in the fourth quarter of 2020 and the mineral reserve and mineral resource estimate will be updated at year-end.
Creston Mascota – Mining Activities Completed; Residual Leaching to Continue into 2021
The Creston Mascota heap leach open pit mine has been operating as a satellite operation to the
Three Months Ended | Three Months Ended | |||||||
Tonnes of ore processed (thousands of tonnes) | 188 | 284 | ||||||
Tonnes of ore processed per day | 2,043 | 3,087 | ||||||
Gold grade (g/t) | 1.19 | 0.78 | ||||||
Gold production (ounces) | 6,567 | 9,596 | ||||||
Production costs per tonne | $ | 40 | $ | 30 | ||||
Minesite costs per tonne | $ | 40 | $ | 31 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 1,155 | $ | 890 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 771 | $ | 668 |
Production costs per tonne in the third quarter of 2020 increased when compared to the prior-year period primarily due to lower ore stacked at the heap leach as the
Minesite costs per tonne in the third quarter of 2020 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce in the third quarter of 2020 increased when compared to the prior-year period due to lower gold production and the reasons described above.
Gold production in the third quarter of 2020 decreased when compared to the prior-year period due to less ore stacked at the heap leach as the
Nine Months Ended | Nine Months Ended | |||||||
Tonnes of ore processed (thousands of tonnes) | 526 | 973 | ||||||
Tonnes of ore processed per day | 1,920 | 3,564 | ||||||
Gold grade (g/t) | 2.00 | 1.93 | ||||||
Gold production (ounces) | 34,397 | 41,461 | ||||||
Production costs per tonne | $ | 55 | $ | 28 | ||||
Minesite costs per tonne | $ | 54 | $ | 28 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 844 | $ | 660 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 565 | $ | 468 |
Production costs per tonne in the first nine months of 2020 increased when compared to the prior-year period due to the timing of inventory on the heap leach, less ore stacked at the heap leach mostly related to the temporary suspension of operations in the second quarter of 2020, the depletion of the
Minesite costs per tonne in the first nine months of 2020 increased when compared to the prior-year period for the reasons described above. Total cash costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above, lower gold production and lower by-product revenue per ounce.
Gold production in the first nine months of 2020 decreased when compared to the prior-year period due to less ore stacked on the heap leach mostly related to the temporary suspension of operations in the second quarter of 2020 and to the depletion of the
The
La India – Agglomeration System Commissioned in July; Exploration for additional oxide and sulfide mineralization continues
The 100% owned La India mine in
Three Months Ended | Three Months Ended | |||||||
Tonnes of ore processed (thousands of tonnes) | 1,559 | 1,102 | ||||||
Tonnes of ore processed per day | 16,946 | 11,978 | ||||||
Gold grade (g/t) | 0.72 | 0.77 | ||||||
Gold production (ounces) | 22,776 | 18,386 | ||||||
Production costs per tonne | $ | 10 | $ | 14 | ||||
Minesite costs per tonne | $ | 11 | $ | 15 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 707 | $ | 819 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 740 | $ | 872 |
Production costs per tonne in the third quarter of 2020 decreased when compared to the prior-year period primarily as a result of increased ore stacking at the heap leach and the weakening of the Mexican peso. Production costs per ounce in the third quarter of 2020 decreased when compared to the prior-year period due to the higher gold production and the reasons described above.
Minesite costs per tonne in the third quarter of 2020 decreased when compared to the prior-year period primarily as a result of increased ore stacking at the heap leach and the weakening of the Mexican peso. Total cash costs per ounce in the third quarter of 2020 decreased when compared to the prior-year period due to the reasons described above, and higher gold production.
Gold production in the third quarter of 2020 increased when compared to the prior-year period primarily due to increased tonnes of ore stacked at the heap leach, partially offset by lower heap leach recovery as a result of the limited ore stacking at the heap leach in the second quarter of 2020 as a result of the temporary suspension of operations. In the third quarter of 2019, ore stacking and heap leach pad recoveries were negatively affected by the high clay content of the ore.
Nine Months Ended | Nine Months Ended | |||||||
Tonnes of ore processed (thousands of tonnes) | 3,869 | 3,998 | ||||||
Tonnes of ore processed per day | 14,120 | 14,645 | ||||||
Gold grade (g/t) | 0.72 | 0.70 | ||||||
Gold production (ounces) | 62,581 | 61,574 | ||||||
Production costs per tonne | $ | 13 | $ | 12 | ||||
Minesite costs per tonne | $ | 13 | $ | 12 | ||||
Production costs per ounce of gold produced ($ per ounce) | $ | 824 | $ | 794 | ||||
Total cash costs per ounce of gold produced ($ per ounce) | $ | 779 | $ | 800 |
Production costs per tonne in the first nine months of 2020 were essentially the same when compared to the prior-year period primarily due to heap leach inventory adjustments, less ore stacked at the heap leach as a result of the temporary suspension of operations and the timing of unsold inventory, partially offset by the weakening of the Mexican peso. Production costs per ounce in the first nine months of 2020 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production.
Minesite costs per tonne in the first nine months of 2020 were essentially the same when compared to the prior-year period primarily due to the timing of inventory on the heap leach, less ore stacked at the heap leach as a result of the temporary suspension of operations, mostly offset by the weakening of the Mexican peso. Total cash costs per ounce in the first nine months of 2020 decreased when compared to the prior-year period due to higher gold production offset by the reasons described above.
Gold production in the first nine months of 2020 increased when compared to the prior-year period due to increased ore stacking in the third quarter of 2020 and higher gold grades resulting from the mining sequence, partially offset by the impact of the temporary suspension of operations during the second quarter of 2020.
For the third year in a row, the La India mine was awarded the Silver Helmet by the Mexican Chamber of Mines for excellence in health and safety performance in the category of "
In the third quarter of 2020, the installation of the new agglomeration system was completed under budget. The system was commissioned in early
The early results of the scenario analysis on Chipriona and other sulphide opportunities proved encouraging and, in the third quarter of 2020, an additional budget of
Regional Exploration at La India Focused on
Exploration at the La India property in the third quarter of 2020 was focused on the oxide and sulphide portions of the
Drilling into the shallow oxides at
An expansion of the drill program at Chipriona from 6,000 metres to 16,000 metres, expected to cost an additional
Agnico Eagle acquired its 100% interest in the
The property was the site of historic heap-leach operations that produced approximately 565,000 ounces of gold at a grade of 2.1 g/t gold between 1991 and 2000. The property has substantial surface infrastructure including pre-stripped pits, haul roads, water sources and several buildings. Extensive drilling and studies in 2019 led to the Company declaring an initial indicated mineral resource estimate of 104,000 ounces of gold (5.1 million tonnes grading 0.64 g/t gold) at open-pit (oxide) depth, and inferred mineral resources of 717,000 ounces of gold at open-pit (oxide) depth (19.1 million tonnes grading 1.17 g/t gold) and 451,000 ounces of gold at underground (sulphide) depth (3.1 million tonnes grading 4.58 g/t gold), as of
Drill results for the
In the third quarter of 2020, drilling at
Selected recent drill results from the Amelia deposit and the
Selected recent exploration drill results from the Amelia deposit and the
Drill Hole | Area | From | To | Depth of | Estimated | Gold grade | Gold | Silver grade | Silver |
SGE-20-354 | 108.0 | 116.0 | 96 | 6.5 | 1.2 | 1.2 | 4 | 4 | |
and | 179.0 | 188.0 | 159 | 5.5 | 0.9 | 0.9 | 142 | 142 | |
SGE-20-355-W1 | Amelia | 852.0 | 857.0 | 687 | 4.5 | 2.8 | 2.8 | 11 | 11 |
SGE-20-359 | Amelia | 402.0 | 413.0 | 284 | 10.3 | 1.3 | 1.3 | 1 | 1 |
including | Amelia | 402.0 | 407.0 | 283 | 4.6 | 2.2 | 2.2 | 2 | 2 |
and | Amelia | 455.0 | 461.0 | 320 | 5.6 | 3.2 | 3.2 | 2 | 2 |
and | Amelia | 581.0 | 593.0 | 361 | 11.5 | 1.6 | 1.6 | 9 | 9 |
SGE-20-362 | Amelia | 320.0 | 330.9 | 167 | 10.5 | 2.6 | 2.6 | 3 | 3 |
including | Amelia | 326.5 | 330.9 | 168 | 4.2 | 5.6 | 5.6 | 8 | 8 |
SGE-20-364 | Amelia | 380.0 | 388.0 | 245 | 5.0 | 2.7 | 2.7 | 4 | 4 |
SGE-20-365 | Amelia | 361.0 | 367.0 | 197 | 5.3 | 2.2 | 2.2 | 5 | 5 |
and | Amelia | 382.0 | 387.2 | 208 | 4.5 | 3.7 | 3.7 | 2 | 2 |
*Holes in the Trinidad Trend use a capping factor of 25 g/t gold and 1,000 g/t silver. The cut-off grade used for these intervals is 0.3 g/t gold in oxide material and 1.0 g/t gold in sulphide material. The minimum estimated true width is 3.0 metres. |
[
Amelia is one of three deposits that comprise the Trinidad Trend and is the site of a previously operating open-pit gold mine. High-grade gold mineralization can be found in multiple parallel structures that commonly correspond to lithological contacts. The Amelia deposit strikes east-west for a length of approximately 900 metres and dips steeply to the north. Most of the open pit (oxide) material lies between surface and 100 metres depth, while the underground mineral resource extends below the open-pit mineral resource to a depth of approximately 350 metres.
The inferred mineral resource estimate at Amelia is comprised of 1.6 million tonnes grading 1.38 g/t gold (70,000 ounces of gold) at open pit depth and 3.1 million tonnes grading 4.58 g/t gold (451,000 ounces of gold) of high-grade sulphide mineralization at underground depth. The Amelia deposit's mineral resource is part of the
Exploration drilling in the third quarter of 2020 into Amelia's high-grade structures continued to expand the mineral resources along extensions of the structures, which remains open.
Hole SGE20-359 intersected three wide, gold-mineralized structures, with the first two intercepts supporting the expansion of underground mineral resources and the third intercept representing a new structure: 1.3 g/t gold and 1 g/t silver over 10.3 metres at 284 metres depth, including 2.2 g/t gold and 1 g/t silver over 4.6 metres at 283 metres depth; 3.2 g/t gold and 2 g/t silver over 5.6 metres at 320 metres depth; and 1.6 g/t gold and 9 g/t silver over 11.5 metres at 361 metres depth.
From the same location but drilled at a shallower dip, hole SGE20-362 intersected 2.6 g/t gold and 3 g/t silver over 10.5 metres at 167 metres depth, including 5.6 g/t gold and 8 g/t silver over 4.2 metres at 167 metres depth.
Located 206 metres southwest of hole SGE20-362, hole SGE20-364 intersected another new structure within the Amelia deposit to the south of the current mineral resources, returning 2.7 g/t gold and 3 g/t silver over 5.0 metres at 245 metres depth.
Hole SGE20-365, located 250 metres northeast of hole SGE20-364, intersected two shallow oxidized structures that returned 2.2 g/t gold and 5 g/t silver over 5.3 metres at 197 metres depth and 3.7 g/t gold and 2 g/t silver over 4.5 metres at 208 metres depth — further supporting the potential for mineral resource expansion.
Hole SGE20-355-W1, located 226 metres northeast of hole SGE20-365, intersected 2.8 g/t gold and 11 g/t silver over 4.5 metres at 687 metres depth within the Amelia deposit.
Exploration drilling at
The Company is also advancing the
Approximately 4 kilometres south of the Trinidad Trend, drilling will also be carried out in the fourth quarter of 2020 in the El Toro Trend, further testing the extension of high-grade gold-mineralized structures under two historical open pits.
The drilling campaign will continue at
Metallurgical testing of Amelia and
With potential production scenarios that include using a heap-leach facility to process lower grade mineralization and a small mill facility to process higher-grade ore, the Company believes that the
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite costs per tonne", "adjusted net income", "operating margin" and "free cash flow" that are not standardized measures under IFRS. These measures may not be comparable to similar measures reported by other gold mining companies. For a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS, other than adjusted net income and free cash flow, see "Reconciliation of Non-GAAP Financial Performance Measures" below.
The total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. The total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis, except that no adjustment is made for by-product metal revenues. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Company's mining operations. Management also uses this measure to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash-generating capabilities at various gold prices.
AISC per ounce of gold produced on a by-product basis are calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options), lease payments related to sustaining assets and reclamation expenses, and then dividing by the number of ounces of gold produced. The AISC per ounce of gold produced on a co-product basis is calculated in the same manner as the AISC per ounce of gold produced on a by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment is made for by-product metal revenues. AISC per ounce is used to show the full cost of gold production from current operations. Management is aware that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of total cash costs per ounce and AISC of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS.
The
Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for inventory production costs and other adjustments, and then dividing by tonnage of ore processed. As the total cash costs per ounce of gold produced can be affected by fluctuations in by‑product metal prices and foreign exchange rates, management believes that minesite costs per tonne provide additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS.
Adjusted net income is calculated by adjusting the net income as recorded in the consolidated statements of income (loss) for non-recurring, unusual and other items. Management uses adjusted net income to evaluate the underlying operating performance of the Company and to assist with the planning and forecasting of future operating results. Management believes that adjusted net income is a useful measure of performance because foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses and unrealized gains and losses on financial instruments do not reflect the underlying operating performance of the Company and may not be indicative of future operating results.
Operating margin is not a recognized measure under IFRS and this data may not be comparable to data presented by other gold producers. This measure is calculated by excluding the following from net income as recorded in the condensed interim consolidated financial statements: Income and mining taxes expense; Other expenses (income); Foreign currency translation loss (gain); Gain (loss) on derivative financial instruments; Finance costs; General and administrative expenses; Amortization of property, plant and mine development; Exploration and corporate development expenses; and Impairment losses (reversals). The Company believes that operating margin is a useful measure that represents the operating performance of its mines associated with the ongoing production and sale of gold and by-product metals. Management uses this measure internally to plan and forecast future operating results. This measure is intended to provide investors with additional information about the Company's underlying operating results and should be evaluated in conjunction with other data prepared in accordance with IFRS.
Free cash flow is calculated by deducting additions to property, plant and mine development from cash provided by operating activities including changes in non-cash working capital balances. Management uses free cash flow to assess the availability of cash, after funding operations and capital expenditures, to operate the business without additional borrowing or drawing down on the Company's existing cash balance.
Management also performs sensitivity analyses in order to quantify the effects of fluctuating foreign exchange rates and metal prices. This news release also contains information as to estimated future total cash costs per ounce and AISC per ounce. The estimates are based upon the total cash costs per ounce and all-in sustaining costs per ounce 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
Notes to Investors Regarding the Use of Mineral Resources
The mineral reserve and mineral resource estimates contained in this news release have been prepared in accordance with the Canadian securities administrators' (the "CSA") National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). These standards are similar to those used by SEC Industry Guide No. 7, as interpreted by the
For
As a result of the adoption of the SEC Modernization Rules, the
Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category.
The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained ounces and mineral reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news release relating to
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
Assumptions used for the
Metal prices | Exchange rates | ||||||
Gold | Silver | Copper | Zinc | C$ per | Mexican | US$ per | |
Long-life operations | |||||||
Short-life operations | Not applicable | ||||||
Upper Beaver*, | Not applicable | Not applicable | Not applicable | Not applicable |
*The Upper Beaver project has a net smelter return (NSR) cut-off value of |
**The Canadian Malartic mine uses a cut-off grade between 0.40 g/t and 0.43 g/t gold (depending on the deposit) |
NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The mineral reserves presented in this news release are separate from and not a portion of the mineral resources.
Modifying factors are considerations used to convert mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors, together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d), as well as other information, can be found in Technical Reports, which may be found at www.sedar.com. Other important operating information can be found in the Company's AIF, MD&A and Form 40-F.
Property/Project name and location | Date of most recent Technical Report |
LaRonde, | |
Canadian | |
Kittila, Kuotko and Kylmakangas, | |
| |
Meliadine, | |
Upper Beaver (Kirkland Lake property), | |
La India, |
APPENDIX - COVID-19 REGIONAL UPDATES
- Abitibi – The Government of
Quebec has designated the region with alert level yellow, indicating a medium risk level for the spread of COVID-19 and minimal governmental restrictions are in place - In September Canadian Malartic had one confirmed COVID-19 case and in October Goldex confirmed 4 COVID-19 cases. Both teams effectively managed the contact tracing, disinfection and the follow up of employees in cooperation with the public health department
- The operations have developed and adopted color coded protocols in-line with the government risk levels to strengthen the application of hygiene measures
- A testing lab was set up in the Company's CTM office at the
Val d'Or airport to test employees travelling toNunavut operations in addition to those from the Abitibi operations on an as-needed basis - Canadian Malartic is in the process of acquiring a testing lab to manage increased risk to the operations posed by the high volume of contractors who come from outside the region during maintenance shutdowns
- The Company maintains open communication channels with various government ministries and the local authorities to regularly inform them of any evolving situations at our operations and what actions are being implemented to secure our people and their families as well as to stay aware of particular needs they may have and support that the Company may provide
Nunavut – There have been no confirmed COVID-19 cases in the territory other than at mine sites from employees travelling from southern communities. Border restrictions forNunavut remain in place with 14-day isolation required prior to entering the communities- The
Nunavut -based workforce remains at home and the Company continues to pay 75% of their base salaries, which amounts to approximately$1.4 million per month. As at the date of this news release, no timeline and process has been set with community leaders, theNunavut chief medical officer and government officials for their return to work - Two COVID-19 cases were recently detected through the operations screening and testing protocols. The teams effectively managed the contact tracing and isolation of contact-cases and the follow-up of employees along with the public health department
- Both sites are implementing re-testing of employees five days into their rotation to detect people that may have been recently exposed, and the disease was in incubation at time of arrival
The Meadowbank Complex will set up a new testing lab to provide capacity for re-testing during the rotation and potential testing ofNunavut -based employees to enable their return to work- Options to accelerate testing results are under review
- The Company established a program named 'The Good Deed Brigade' to support local community projects that lack resources. With this program, some of the Company's
Nunavut -based employees in several neighbouring hamlets are undertaking or participating in community based projects, such as cleaning the landfills or supporting training and mentoring programs - A
Nunavut Community tour is planned in November and meetings are planned with the main stakeholders as well as employees in each community. The government mandated quarantine period will be complete and physical distancing and hygiene measures will be followed Finland – Although the number of daily COVID cases has recently exceeded the number of cases during the first wave, the Finnish government has indicated that it is not considering lock downs related to industrial operations- No COVID-19 cases were detected at Kittila in the third quarter of 2020
- Local resources have been added to support the Procon team and offset the impact of travel restrictions on the advancement of shaft sinking
- The municipality of Kittila opened a COVID-19 testing facility and which is available for all residents of the municipality of Kittila and sponsored by Agnico Eagle
- Agnico Eagle sponsored a local mental health initiative targeted to help people suffering from COVID related stress
Mexico – Every state is colour coded by the government to reflect the level of risk with the spread of the virus and the level of procedures to be applied in the society.Sonora state is at yellow level (medium risk), while Chihuahua is at orange level (medium to high risk)- A total of 110 confirmed cases (including exploration in
Mexico ) have been detected in employees and contractors as ofOctober 27, 2020 , of which 96 have recovered. All active cases are stable and close follow-up on each case is being performed - Screening and testing protocols and control measures have been reinforced to detect cases prior to entrance to the sites and to control the spread of the virus
- People more vulnerable due to age or medical condition remain off-site. Personnel that are able to work tele-remotely are doing so
- Regular communications with employees to reinforce safe COVID-19 prevention practices at home and work
- Continued support to local communities, such as the distribution of food hampers to local families in need and resources provided to local health centres and communities
- Supply Chain Impact
- With the second wave of COVID-19 underway in all of the Company's operating regions, the Company is closely monitoring general business activity and is regularly communicating with key suppliers to identify potential supply chain issues
- In
Nunavut , the sea-lift season has been completed and all materials have been delivered to site as per plan - Costs Related to the Suspension and/or Reduction of Activities
- In the third quarter of 2020, the Company incurred a total of
$3.7 million included in Other Expenses related to the payment of 75% of the base salaries of theNunavut -based employees - In the third quarter of 2020, the Company incurred
$2.8 million in direct and incremental costs to manage the COVID-19 pandemic (approximately$6 per ounce). These costs relate mostly to the purchase of sanitizing equipment and consumables; procurement of non-medical masks; testing of employees; rental of trailers for screening; additional employee transportation; and supplies and health support to surrounding communities - These incremental costs related to the COVID-19 pandemic are expected to remain in place for the foreseeable future and are expected to increase the production costs at our operations by approximately
$1.0 million per month (or approximately$6 per ounce). To date, the Company has seen limited impact on operational productivity as a result of COVID-19
APPENDIX - EXPLORATION DRILL COLLAR COORDINATES
LaRonde 3 exploration drill collar coordinates
Drill Collar Coordinates* | ||||||
Drill Hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
LR-302-012 | 690223 | 5346770 | -2,671 | 172 | -65 | 507 |
LR-302-013 | 690225 | 5346771 | -2,670 | 138 | -44 | 321 |
LR-302-014A | 690223 | 5346770 | -2,671 | 170 | -64 | 431 |
LR-314-013 | 690053 | 5346858 | -2,803 | 155 | -47 | 466 |
LR-314-015 | 690054 | 5346857 | -2,803 | 150 | -42 | 419 |
*Coordinate System UTM Nad 83 Zone 17 |
Canadian Malartic exploration drill collar coordinates
Drill Collar Coordinates* | ||||||
Drill Hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
MEX19-140WB | 5334597 | 718145 | 308 | 193 | -59 | 773 |
MEX19-151WC | 5334716 | 717422 | 309 | 169 | -68 | 663 |
MEX19-159 | 5334653 | 717848 | 309 | 198 | -74 | 1,974 |
MEX19-159A | 5334653 | 717848 | 309 | 198 | -74 | 1,953 |
MEX19-160 | 5334704 | 718008 | 308 | 209 | -50 | 1,809 |
MEX20-163AW | 5334237 | 717392 | 314 | 155 | -75 | 1,000 |
MEX20-163AWA | 5334237 | 717392 | 314 | 155 | -75 | 1,039 |
MEX20-164 | 5334701 | 717701 | 309 | 203 | -75 | 2,109 |
MEX20-164W | 5334701 | 717701 | 309 | 203 | -75 | 2,119 |
MEX20-166 | 5334595 | 718289 | 308 | 194 | -66 | 1,824 |
MEX20-167 | 5334737 | 717423 | 309 | 184 | -64 | 1,860 |
MEX20-169AW | 5334652 | 717848 | 309 | 186 | -75 | 2,099 |
MEX20-170AW | 5334595 | 718289 | 308 | 191 | -71 | 2,026 |
MEX20-171 | 5334701 | 717701 | 309 | 193 | -75 | 2,000 |
MEX20-171WA | 5334701 | 717701 | 309 | 193 | -75 | 2,082 |
MEX20-172A | 5334704 | 718008 | 308 | 175 | -74 | 2,073 |
MEX20-172AW | 5334704 | 718008 | 308 | 175 | -74 | 2,103 |
MEX20-172AWA | 5334704 | 718008 | 308 | 175 | -74 | 2,148 |
MEX20-176 | 5334531 | 717710 | 309 | 185 | -56 | 1,533 |
MEX20-177 | 5334208 | 718319 | 310 | 190 | -74 | 1,650 |
MEX20-178 | 5334236 | 717392 | 314 | 182 | -75 | 1,403 |
MEX20-178W | 5334236 | 717392 | 314 | 182 | -75 | 1,470 |
MEX20-178WA | 5334236 | 717392 | 314 | 182 | -75 | 1,512 |
*Coordinate System NAD 1983 |
Kirkland Lake project exploration drill collar coordinates
Drill Collar Coordinates* | ||||||
Drill hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
KLUB20-200W10 | 5336834 | 591663 | 316 | 132 | -70 | 1,674 |
KLUB20-200W11 | 5336834 | 591663 | 316 | 132 | -70 | 1,662 |
KLUB20-310AW1 | 5336729 | 591860 | 317 | 140 | -68 | 1,530 |
KLUB20-384E | 5335516 | 591740 | 285 | 139 | -47 | 444 |
KLUB20-561W2 | 5336456 | 591713 | 304 | 111 | -75 | 1,492 |
KLUB20-561W3 | 5336456 | 591713 | 304 | 111 | -75 | 1,320 |
KLUB20-561W4 | 5336456 | 591713 | 304 | 111 | -75 | 1,302 |
KLUB20-561W5 | 5336456 | 591713 | 304 | 111 | -75 | 1,362 |
*Coordinate System NAD 1983 UTM Zone 17N |
Drill collar coordinates of selected drill holes at Kittila mine
Drill Collar Coordinates* | ||||||
Drill Hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
RIE19-702H | 7539299 | 2558637 | -672 | 90 | -75 | 1,164 |
RIE19-702J | 7539299 | 2558637 | -672 | 90 | -75 | 1107 |
RIE20-603 | 7539228 | 2558714 | -788 | 97 | 3 | 324 |
RIE20-605 | 7539225 | 2558714 | -788 | 115 | -23 | 251 |
RIE20-606 | 7539229 | 2558714 | -789 | 85 | -35 | 558 |
RUG20-510 | 7538051 | 2558709 | -762 | 95 | -2 | 342 |
RUG20-515 | 7537954 | 2558695 | -775 | 100 | 28 | 271 |
RUG20-516 | 7537954 | 2558695 | -776 | 100 | 15 | 282 |
RUG20-517 | 7537954 | 2558695 | -776 | 110 | 22 | 243 |
RUG20-518 | 7537954 | 2558695 | -776 | 106 | 4 | 246 |
RUG20-519 | 7537955 | 2558695 | -777 | 97 | -2 | 348 |
*Finnish Coordinate System KKJ Zone 2 |
Drill Collar Coordinates* | ||||||
Drill Hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
CBUG20-035 | 3136524 | 758299 | 1,221 | 47 | 0 | 108 |
CBUG20-036 | 3136524 | 758299 | 1,223 | 47 | 0 | 141 |
CBUG20-037 | 3136619 | 758537 | 1,215 | 232 | 32 | 141 |
CBUG20-040 | 3136528 | 758249 | 1,223 | 50 | 28 | 255 |
CBUG20-042 | 3136496 | 758344 | 1,223 | 50 | 40 | 207 |
CBUG20-045 | 3136571 | 758157 | 1,224 | 50 | -5 | 183 |
CBUG20-048 | 3136557 | 758204 | 1,225 | 50 | 41 | 261 |
CBUG20-049 | 3136570 | 758156 | 1,227 | 50 | 40 | 261 |
CBUG20-050 | 3136557 | 758204 | 1,226 | 50 | 21 | 237 |
CBUG20-054 | 3136557 | 758204 | 1,223 | 50 | -5 | 171 |
CBUG20-057 | 3136528 | 758250 | 1,223 | 50 | 25 | 234 |
CBUG20-058 | 3136524 | 758298 | 1,223 | 47 | 45 | 141 |
RP20-276 | 3130269 | 768123 | 2,194 | 230 | -45 | 87 |
RP20-277 | 3130582 | 767672 | 2,185 | 205 | -60 | 129 |
RP20-278 | 3130579 | 767586 | 2,191 | 200 | -45 | 90 |
RP20-279 | 3130704 | 767361 | 2,166 | 200 | -45 | 78 |
RP20-280 | 3130699 | 767330 | 2,164 | 200 | -45 | 60 |
RP20-287 | 3131331 | 765110 | 2,026 | 200 | -45 | 51 |
RP20-289 | 3131211 | 765464 | 1,991 | 200 | -55 | 78 |
RP20-290 | 3131092 | 765670 | 2,030 | 200 | -45 | 54 |
RP20-294 | 3131521 | 765106 | 1,942 | 200 | -55 | 180 |
RP20-295 | 3131419 | 765289 | 1,976 | 200 | -56 | 231 |
RP20-296 | 3131409 | 765256 | 1,966 | 200 | -55 | 189 |
*Coordinates of drill holes are in UTM NAD27 12N. |
Collar coordinates of exploration drill holes at
Drill Collar Coordinates* | ||||||
Drill Hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
SGE-20-354 | 543470 | 3392334 | 1,166 | 170 | -60 | 300 |
SGE-20-359 | 541987 | 3392499 | 1,359 | 120 | -61 | 800 |
SGE-20-355-W1 | 542290 | 3393144 | 1,302 | 180 | -50 | 1120 |
SGE-20-362 | 541991 | 3392502 | 1,361 | 120 | -45 | 720 |
SGE-20-364 | 542061 | 3392311 | 1,348 | 120 | -60 | 500 |
SGE-20-365 | 542079 | 3392560 | 1,352 | 120 | -46 | 600 |
*Coordinate System UTM WGS84 12N Zone |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||||||
(thousands of United States dollars, except where noted) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Operating margin(i) by mine: | |||||||||||
Northern Business | |||||||||||
LaRonde mine | $ | 144,364 | $ | 93,223 | $ | 250,512 | $ | 225,327 | |||
21,522 | 12,238 | 43,380 | 26,199 | ||||||||
Lapa mine | — | — | — | 2,033 | |||||||
36,350 | 33,197 | 94,350 | 83,287 | ||||||||
Meadowbank Complex | 46,032 | 9,227 | 37,423 | 37,501 | |||||||
Meliadine mine | 109,313 | 50,323 | 215,746 | 65,356 | |||||||
Canadian Malartic mine(ii) | 76,673 | 70,263 | 179,221 | 185,124 | |||||||
Kittila mine | 62,807 | 44,696 | 163,806 | 78,140 | |||||||
Southern Business | |||||||||||
37,063 | 30,003 | 79,705 | 91,383 | ||||||||
Creston Mascota mine | 9,279 | 12,203 | 38,101 | 38,181 | |||||||
La India mine | 24,406 | 11,240 | 58,122 | 36,526 | |||||||
Total operating margin(i) | 567,809 | 366,613 | 1,160,366 | 869,057 | |||||||
Amortization of property, plant and mine development | 173,173 | 143,293 | 456,147 | 395,738 | |||||||
Exploration, corporate and other | 61,947 | 83,864 | 230,648 | 238,522 | |||||||
Income before income and mining taxes | 332,689 | 139,456 | 473,571 | 234,797 | |||||||
Income and mining taxes expense | 110,035 | 62,789 | 167,181 | 93,326 | |||||||
Net income for the period | $ | 222,654 | $ | 76,667 | $ | 306,390 | $ | 141,471 | |||
Net income per share — basic | $ | 0.92 | $ | 0.32 | $ | 1.27 | $ | 0.60 | |||
Net income per share — diluted | $ | 0.91 | $ | 0.32 | $ | 1.26 | $ | 0.60 | |||
Cash flows: | |||||||||||
Cash provided by operating activities | $ | 462,538 | $ | 349,233 | $ | 788,544 | $ | 624,224 | |||
Cash used in investing activities | $ | (205,893) | $ | (245,829) | $ | (561,797) | $ | (706,673) | |||
Cash (used in) provided by financing activities | $ | (268,802) | $ | 37,249 | $ | (228,390) | $ | 38,701 | |||
Realized prices: | |||||||||||
Gold (per ounce) | $ | 1,911 | $ | 1,480 | $ | 1,753 | $ | 1,374 | |||
Silver (per ounce) | $ | 25.35 | $ | 17.46 | $ | 19.16 | $ | 16.00 | |||
Zinc (per tonne) | $ | 2,303 | $ | 2,415 | $ | 2,241 | $ | 2,639 | |||
Copper (per tonne) | $ | 6,972 | $ | 5,569 | $ | 5,855 | $ | 5,871 |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||||||
(thousands of United States dollars, except where noted) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Payable production(iii): | |||||||||||
Gold (ounces): | |||||||||||
Northern Business | |||||||||||
LaRonde mine | 81,199 | 91,664 | 198,688 | 245,684 | |||||||
18,981 | 15,438 | 45,496 | 44,596 | ||||||||
Lapa mine | — | — | — | 5 | |||||||
31,008 | 37,142 | 88,033 | 105,921 | ||||||||
Meadowbank Complex(iii) | 74,921 | 48,870 | 140,679 | 131,829 | |||||||
Meliadine mine(iii) | 96,757 | 78,093 | 226,107 | 156,787 | |||||||
Canadian Malartic mine(ii)(iii) | 76,398 | 81,573 | 197,946 | 249,554 | |||||||
Kittila mine | 53,149 | 61,343 | 163,069 | 130,756 | |||||||
Southern Business | |||||||||||
30,937 | 34,832 | 78,127 | 119,302 | ||||||||
Creston Mascota mine | 6,567 | 9,596 | 34,397 | 41,461 | |||||||
La India mine | 22,776 | 18,386 | 62,581 | 61,574 | |||||||
Total gold (ounces) | 492,693 | 476,937 | 1,235,123 | 1,287,469 | |||||||
Silver (thousands of ounces): | |||||||||||
Northern Business | |||||||||||
LaRonde mine | 174 | 227 | 459 | 620 | |||||||
2 | 2 | 7 | 7 | ||||||||
Lapa mine | — | — | — | 1 | |||||||
— | — | 1 | 1 | ||||||||
Meadowbank Complex | 18 | 29 | 40 | 71 | |||||||
Meliadine mine | 7 | 6 | 19 | 11 | |||||||
Canadian Malartic mine(ii) | 81 | 102 | 260 | 307 | |||||||
Kittila mine | 3 | 4 | 9 | 10 | |||||||
Southern Business | |||||||||||
505 | 517 | 1,234 | 1,642 | ||||||||
Creston Mascota mine | 94 | 134 | 523 | 483 | |||||||
La India mine | 14 | 27 | 51 | 106 | |||||||
Total silver (thousands of ounces) | 898 | 1,048 | 2,603 | 3,259 | |||||||
Zinc (tonnes) | 2,198 | 3,475 | 3,275 | 10,716 | |||||||
Copper (tonnes) | 723 | 958 | 2,128 | 2,468 |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
(Unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
2020 | 2019 | 2020 | 2019 | ||||
Payable metal sold: | |||||||
Gold (ounces): | |||||||
Northern Business | |||||||
LaRonde mine | 105,457 | 90,867 | 200,013 | 256,501 | |||
17,835 | 15,368 | 43,805 | 39,762 | ||||
Lapa mine | — | — | — | 3,777 | |||
30,421 | 36,488 | 87,789 | 105,028 | ||||
Meadowbank Complex | 72,390 | 52,211 | 140,083 | 137,686 | |||
Meliadine mine | 92,775 | 71,407 | 227,884 | 131,962 | |||
Canadian Malartic mine(ii)(iv) | 75,568 | 77,595 | 187,852 | 232,241 | |||
Kittila mine | 56,848 | 60,020 | 170,333 | 131,845 | |||
Southern Business | |||||||
30,470 | 37,535 | 82,128 | 119,490 | ||||
Creston Mascota mine | 7,573 | 12,285 | 34,465 | 43,295 | |||
La India mine | 20,958 | 17,385 | 61,840 | 62,314 | |||
Total gold (ounces) | 510,295 | 471,161 | 1,236,192 | 1,263,901 | |||
Silver (thousands of ounces): | |||||||
Northern Business | |||||||
LaRonde mine | 176 | 212 | 472 | 619 | |||
2 | 2 | 7 | 7 | ||||
Lapa mine | — | — | — | 2 | |||
— | — | 1 | 1 | ||||
Meadowbank Complex | 9 | 32 | 33 | 69 | |||
Meliadine mine | 4 | — | 17 | 1 | |||
Canadian Malartic mine(ii)(iv) | 70 | 83 | 240 | 281 | |||
Kittila mine | 4 | 1 | 9 | 9 | |||
Southern Business | |||||||
489 | 576 | 1,307 | 1,636 | ||||
Creston Mascota mine | 101 | 160 | 528 | 475 | |||
La India mine | 21 | 26 | 57 | 114 | |||
Total silver (thousands of ounces): | 876 | 1,092 | 2,671 | 3,214 | |||
Zinc (tonnes) | 1,570 | 4,075 | 3,403 | 10,660 | |||
Copper (tonnes) | 739 | 947 | 2,121 | 2,445 |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||||||
(thousands of United States dollars, except where noted) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Total cash costs per ounce of gold produced — co-product basis(v): | |||||||||||
Northern Business | |||||||||||
LaRonde mine | $ | 619 | $ | 635 | $ | 658 | $ | 690 | |||
683 | 655 | 750 | 708 | ||||||||
702 | 549 | 653 | 565 | ||||||||
Meadowbank Complex | 1,263 | 1,071 | 1,516 | 1,002 | |||||||
Meliadine mine | 697 | 746 | 823 | 776 | |||||||
Canadian Malartic mine(ii)(iii) | 803 | 635 | 784 | 616 | |||||||
Kittila mine | 814 | 725 | 777 | 729 | |||||||
Southern Business | |||||||||||
1,103 | 1,013 | 1,065 | 825 | ||||||||
Creston Mascota mine | 1,175 | 937 | 841 | 663 | |||||||
La India mine | 759 | 900 | 797 | 828 | |||||||
Weighted average total cash costs per ounce of gold produced | $ | 835 | $ | 723 | $ | 864 | $ | 721 | |||
Total cash costs per ounce of gold produced — by-product basis(v): | |||||||||||
Northern Business | |||||||||||
LaRonde mine | $ | 428 | $ | 454 | $ | 508 | $ | 481 | |||
681 | 653 | 747 | 705 | ||||||||
702 | 549 | 653 | 565 | ||||||||
Meadowbank Complex | 1,260 | 1,035 | 1,511 | 991 | |||||||
Meliadine mine | 695 | 746 | 822 | 776 | |||||||
Canadian Malartic mine(ii)(iii) | 772 | 615 | 756 | 597 | |||||||
Kittila mine | 813 | 725 | 776 | 728 | |||||||
Southern Business | |||||||||||
677 | 745 | 740 | 603 | ||||||||
Creston Mascota mine | 771 | 668 | 565 | 468 | |||||||
La India mine | 740 | 872 | 779 | 800 | |||||||
Weighted average total cash costs per ounce of gold produced | $ | 764 | $ | 653 | $ | 805 | $ | 643 |
Notes: |
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of operating margin. |
(ii) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic mine. |
(iii) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period. Payable production for the three and nine months ended September 30, 2020 includes 1,982 ounces of gold from the Tiriganiaq open pit deposit at the Meliadine mine, which were produced during these periods as commercial production at the Tiriganiaq open pit deposit has not yet been achieved. Payable production for the three and nine months ended September 30, 2020 includes 13,305 and 18,930 ounces of gold from the Barnat deposit at the Canadian Malartic mine, respectively, which were produced during these periods as commercial production at the Barnat deposit has not yet been achieved. Payable production for the three and nine months ended September 30, 2019 includes 33,134 and 35,281 ounces of gold from the Amaruq deposit, respectively, which were produced prior to the achievement of commercial production at the Amaruq deposit. Payable production for the nine months ended September 30, 2019 includes 47,281 ounces of gold from the Meliadine mine, which were produced prior to the achievement of commercial production at the Meliadine mine. Payable production for the nine months ended September 30, 2019 includes 5 ounces of payable gold production at the Lapa mine, which were credited to the Company as a result of final refining reconciliations following the cessation of mining and processing operations at the Lapa mine on December 31, 2018. |
(iv) The Canadian Malartic mine's payable metal sold excludes the 5.0% net smelter return royalty granted to Osisko Gold Royalties Ltd. |
(v) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's calculation and use of total cash cost per ounce of gold produced. |
CONSOLIDATED BALANCE SHEETS | ||||||
(thousands of | ||||||
(Unaudited) | ||||||
As at | As at | |||||
September 30, 2020 | December 31, 2019 | |||||
ASSETS | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 315,884 | $ | 321,897 | ||
Short-term investments | 5,635 | 6,005 | ||||
Trade receivables | 9,167 | 8,320 | ||||
Inventories | 651,673 | 580,068 | ||||
Income taxes recoverable | 2,405 | 2,281 | ||||
Fair value of derivative financial instruments | 17,721 | 4,535 | ||||
Other current assets | 160,633 | 179,218 | ||||
Total current assets | 1,163,118 | 1,102,324 | ||||
Non-current assets: | ||||||
407,792 | 407,792 | |||||
Property, plant and mine development | 7,128,672 | 7,003,665 | ||||
Investments | 281,857 | 91,236 | ||||
Other assets | 220,068 | 184,868 | ||||
Total assets | $ | 9,201,507 | $ | 8,789,885 | ||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Accounts payable and accrued liabilities | $ | 385,037 | $ | 345,572 | ||
Reclamation provision | 15,313 | 12,455 | ||||
Interest payable | 25,396 | 16,752 | ||||
Income taxes payable | 40,137 | 26,166 | ||||
Lease obligations | 19,473 | 14,693 | ||||
Current portion of long-term debt | — | 360,000 | ||||
Fair value of derivative financial instruments | 4,860 | — | ||||
Total current liabilities | 490,216 | 775,638 | ||||
Non-current liabilities: | ||||||
Long-term debt | 1,564,590 | 1,364,108 | ||||
Lease obligations | 98,017 | 102,135 | ||||
Reclamation provision | 480,709 | 427,346 | ||||
Deferred income and mining tax liabilities | 1,029,000 | 948,142 | ||||
Other liabilities | 54,956 | 61,002 | ||||
Total liabilities | 3,717,488 | 3,678,371 | ||||
EQUITY | ||||||
Common shares: | ||||||
Outstanding — 242,991,213 common shares issued, less 640,834 shares held in trust | 5,723,218 | 5,589,352 | ||||
Stock options | 172,912 | 180,160 | ||||
Contributed surplus | 37,254 | 37,254 | ||||
Deficit | (485,959) | (647,330) | ||||
Other reserves | 36,594 | (47,922) | ||||
Total equity | 5,484,019 | 5,111,514 | ||||
Total liabilities and equity | $ | 9,201,507 | $ | 8,789,885 |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(thousands of United States dollars, except per share amounts, IFRS basis) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
REVENUES | |||||||||||
Revenues from mining operations | $ | 980,612 | $ | 682,959 | $ | 2,209,665 | $ | 1,741,793 | |||
COSTS AND EXPENSES | |||||||||||
Production(i) | 412,803 | 316,346 | 1,049,299 | 872,736 | |||||||
Exploration and corporate development | 30,488 | 28,227 | 74,468 | 81,029 | |||||||
Amortization of property, plant and mine development | 173,173 | 143,293 | 456,147 | 395,738 | |||||||
General and administrative | 26,291 | 27,336 | 82,380 | 85,555 | |||||||
Finance costs | 21,439 | 25,721 | 74,201 | 78,797 | |||||||
(Gain) loss on derivative financial instruments | (29,724) | 2,378 | (49,297) | (10,296) | |||||||
Foreign currency translation loss (gain) | 4,321 | (1,347) | 11,489 | 4,990 | |||||||
Other expenses (income) | 9,132 | 1,549 | 37,407 | (1,553) | |||||||
Income before income and mining taxes | 332,689 | 139,456 | 473,571 | 234,797 | |||||||
Income and mining taxes expense | 110,035 | 62,789 | 167,181 | 93,326 | |||||||
Net income for the period | $ | 222,654 | $ | 76,667 | $ | 306,390 | $ | 141,471 | |||
Net income per share - basic | $ | 0.92 | $ | 0.32 | $ | 1.27 | $ | 0.60 | |||
Net income per share - diluted | $ | 0.91 | $ | 0.32 | $ | 1.26 | $ | 0.60 | |||
Weighted average number of common shares outstanding (in thousands): | |||||||||||
Basic | 242,059 | 238,331 | 241,152 | 236,153 | |||||||
Diluted | 243,867 | 240,115 | 242,690 | 237,336 | |||||||
Note: | |||||||||||
(i) Exclusive of amortization, which is shown separately. |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(thousands of United States dollars, IFRS basis) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
OPERATING ACTIVITIES | |||||||||||
Net income for the period | $ | 222,654 | $ | 76,667 | $ | 306,390 | $ | 141,471 | |||
Add (deduct) adjusting items: | |||||||||||
Amortization of property, plant and mine development | 173,173 | 143,293 | 456,147 | 395,738 | |||||||
Deferred income and mining taxes | 46,927 | 36,787 | 75,350 | 28,104 | |||||||
Unrealized gain on warrants | (20,854) | (440) | (52,682) | (492) | |||||||
Stock-based compensation | 12,194 | 12,269 | 38,724 | 39,267 | |||||||
Foreign currency translation loss (gain) | 4,321 | (1,347) | 11,489 | 4,990 | |||||||
Other | (4,034) | 8,093 | (11,099) | (5,627) | |||||||
Changes in non-cash working capital balances: | |||||||||||
Trade receivables | (2,457) | 112 | (847) | 1,457 | |||||||
Income taxes | 32,630 | 17,087 | 12,477 | (1,183) | |||||||
Inventories | (51,084) | (60,043) | (93,686) | (81,074) | |||||||
Other current assets | 6,567 | 43,705 | 4,437 | (37,495) | |||||||
Accounts payable and accrued liabilities | 30,151 | 70,504 | 34,265 | 122,510 | |||||||
Interest payable | 12,350 | 2,546 | 7,579 | 16,558 | |||||||
Cash provided by operating activities | 462,538 | 349,233 | 788,544 | 624,224 | |||||||
INVESTING ACTIVITIES | |||||||||||
Additions to property, plant and mine development | (195,334) | (252,659) | (534,604) | (686,943) | |||||||
Proceeds from sale of property, plant and mine development | 354 | 634 | 727 | 2,863 | |||||||
Net sales (purchases) of short-term investments | 1,255 | 135 | 370 | (684) | |||||||
Net proceeds from sale of equity securities and other investments | — | 6,914 | 8,759 | 7,822 | |||||||
Purchases of equity securities and other investments | (12,168) | (853) | (37,049) | (29,731) | |||||||
Cash used in investing activities | (205,893) | (245,829) | (561,797) | (706,673) | |||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from Credit Facility | 75,000 | 80,000 | 1,075,000 | 220,000 | |||||||
Repayment of Credit Facility | (325,000) | (80,000) | (1,075,000) | (220,000) | |||||||
Proceeds from Senior Notes issuance | — | — | 200,000 | — | |||||||
Repayment of Senior Notes | — | — | (360,000) | — | |||||||
Long-term debt financing costs | — | — | (1,597) | — | |||||||
Repayment of lease obligations | (4,119) | (3,676) | (11,598) | (10,510) | |||||||
Dividends paid | (39,844) | (21,979) | (118,407) | (71,221) | |||||||
Repurchase of common shares for stock-based compensation plans | — | (325) | (35,930) | (24,395) | |||||||
Proceeds on exercise of stock options | 21,236 | 59,422 | 89,289 | 133,243 | |||||||
Common shares issued | 3,925 | 3,807 | 9,853 | 11,584 | |||||||
Cash (used in) provided by financing activities | (268,802) | 37,249 | (228,390) | 38,701 | |||||||
Effect of exchange rate changes on cash and cash equivalents | (1,516) | (966) | (4,370) | 341 | |||||||
Net (decrease) increase in cash and cash equivalents during the period | (13,673) | 139,687 | (6,013) | (43,407) | |||||||
Cash and cash equivalents, beginning of period | 329,557 | 118,732 | 321,897 | 301,826 | |||||||
Cash and cash equivalents, end of period | $ | 315,884 | $ | 258,419 | $ | 315,884 | $ | 258,419 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||
Interest paid | $ | 7,417 | $ | 23,344 | $ | 61,864 | $ | 59,083 | |||
Income and mining taxes paid | $ | 31,086 | $ | 15,912 | $ | 84,139 | $ | 70,364 |
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES | ||||||||||||||||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Total Production Costs by Mine | ||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended | |||||||||||||||||||||||||
(thousands of | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
LaRonde mine | $ | 64,983 | $ | 54,465 | $ | 126,970 | $ | 165,055 | ||||||||||||||||||
12,616 | 10,460 | 33,754 | 28,408 | |||||||||||||||||||||||
Lapa mine | — | — | — | 2,844 | ||||||||||||||||||||||
21,786 | 20,263 | 58,006 | 59,589 | |||||||||||||||||||||||
Meadowbank Complex | 92,256 | 20,551 | 210,105 | 104,207 | ||||||||||||||||||||||
Meliadine mine | 66,937 | 55,376 | 182,523 | 83,263 | ||||||||||||||||||||||
Canadian Malartic mine(i) | 51,654 | 52,533 | 137,643 | 153,433 | ||||||||||||||||||||||
Kittila mine | 45,747 | 44,447 | 132,471 | 104,080 | ||||||||||||||||||||||
33,131 | 34,652 | 87,233 | 95,572 | |||||||||||||||||||||||
Creston Mascota mine | 7,585 | 8,544 | 29,017 | 27,382 | ||||||||||||||||||||||
La India mine | 16,108 | 15,055 | 51,577 | 48,903 | ||||||||||||||||||||||
Production costs per the condensed interim | $ | 412,803 | $ | 316,346 | $ | 1,049,299 | $ | 872,736 | ||||||||||||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced (ii) by Mine and Reconciliation of Production Costs to Minesite Costs | ||||||||||||||||||||||||||
(thousands of | ||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 81,199 | 91,664 | 198,688 | 245,684 | ||||||||||||||||||||||
Production costs | $ | 64,983 | $ | 800 | $ | 54,465 | $ | 594 | $ | 126,970 | $ | 639 | $ | 165,055 | $ | 672 | ||||||||||
Inventory and other adjustments(iv) | (14,720) | (181) | 3,701 | 41 | 3,825 | 19 | 4,400 | 18 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 50,263 | $ | 619 | $ | 58,166 | $ | 635 | $ | 130,795 | $ | 658 | $ | 169,455 | $ | 690 | ||||||||||
By-product metal revenues | (15,488) | (191) | (16,519) | (181) | (29,878) | (150) | (51,241) | (209) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 34,775 | $ | 428 | $ | 41,647 | $ | 454 | $ | 100,917 | $ | 508 | $ | 118,214 | $ | 481 | ||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 492 | 543 | 1,228 | 1,552 | ||||||||||||||||||||||
Production costs | $ | 64,983 | $ | 132 | $ | 54,465 | $ | 100 | $ | 126,970 | $ | 103 | $ | 165,055 | $ | 106 | ||||||||||
Production costs (C$) | C$ | 88,654 | C$ | 180 | C$ | 72,121 | C$ | 133 | C$ | 169,704 | C$ | 138 | C$ | 219,391 | C$ | 141 | ||||||||||
Inventory and other adjustments (C$)(v) | (30,354) | (62) | (6,888) | (13) | (14,347) | (12) | (26,086) | (16) | ||||||||||||||||||
Minesite operating costs (C$) | C$ | 58,300 | C$ | 118 | C$ | 65,233 | C$ | 120 | C$ | 155,357 | C$ | 126 | C$ | 193,305 | C$ | 125 | ||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 18,981 | 15,438 | 45,496 | 44,596 | ||||||||||||||||||||||
Production costs | $ | 12,616 | $ | 665 | $ | 10,460 | $ | 678 | $ | 33,754 | $ | 742 | $ | 28,408 | $ | 637 | ||||||||||
Inventory and other adjustments(iv) | 349 | 18 | (348) | (23) | 353 | 8 | 3,146 | 71 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 12,965 | $ | 683 | $ | 10,112 | $ | 655 | $ | 34,107 | $ | 750 | $ | 31,554 | $ | 708 | ||||||||||
By-product metal revenues | (35) | (2) | (32) | (2) | (121) | (3) | (108) | (3) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 12,930 | $ | 681 | $ | 10,080 | $ | 653 | $ | 33,986 | $ | 747 | $ | 31,446 | $ | 705 | ||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 277 | 221 | 707 | 643 | ||||||||||||||||||||||
Production costs | $ | 12,616 | $ | 46 | $ | 10,460 | $ | 47 | $ | 33,754 | $ | 48 | $ | 28,408 | $ | 44 | ||||||||||
Production costs (C$) | C$ | 16,876 | C$ | 61 | C$ | 13,858 | C$ | 63 | C$ | 45,441 | C$ | 64 | C$ | 37,743 | C$ | 59 | ||||||||||
Inventory and other adjustments (C$)(v) | 662 | 2 | (484) | (3) | 610 | 1 | 4,193 | 6 | ||||||||||||||||||
Minesite operating costs (C$) | C$ | 17,538 | C$ | 63 | C$ | 13,374 | C$ | 60 | C$ | 46,051 | C$ | 65 | C$ | 41,936 | C$ | 65 | ||||||||||
Goldex Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 31,008 | 37,142 | 88,033 | 105,921 | ||||||||||||||||||||||
Production costs | $ | 21,786 | $ | 703 | $ | 20,263 | $ | 546 | $ | 58,006 | $ | 659 | $ | 59,589 | $ | 563 | ||||||||||
Inventory and other adjustments(iv) | (12) | (1) | 131 | 3 | (498) | (6) | 262 | 2 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 21,774 | $ | 702 | $ | 20,394 | $ | 549 | $ | 57,508 | $ | 653 | $ | 59,851 | $ | 565 | ||||||||||
By-product metal revenues | (4) | — | (11) | — | (17) | — | (21) | — | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 21,770 | $ | 702 | $ | 20,383 | $ | 549 | $ | 57,491 | $ | 653 | $ | 59,830 | $ | 565 | ||||||||||
Goldex Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 709 | 712 | 1,899 | 2,101 | ||||||||||||||||||||||
Production costs | $ | 21,786 | $ | 31 | $ | 20,263 | $ | 28 | $ | 58,006 | $ | 31 | $ | 59,589 | $ | 28 | ||||||||||
Production costs (C$) | C$ | 29,057 | C$ | 41 | C$ | 26,776 | C$ | 38 | C$ | 77,663 | C$ | 41 | C$ | 79,133 | C$ | 38 | ||||||||||
Inventory and other adjustments (C$)(v) | 529 | 1 | 214 | — | 200 | — | 455 | — | ||||||||||||||||||
Minesite operating costs (C$) | C$ | 29,586 | C$ | 42 | C$ | 26,990 | C$ | 38 | C$ | 77,863 | C$ | 41 | C$ | 79,588 | C$ | 38 | ||||||||||
Meadowbank Complex | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 74,921 | 15,736 | 140,679 | 96,548 | ||||||||||||||||||||||
Production costs | $ | 92,256 | $ | 1,231 | $ | 20,551 | $ | 1,306 | $ | 210,105 | $ | 1,494 | $ | 104,207 | $ | 1,079 | ||||||||||
Inventory and other adjustments(iv) | 2,394 | 32 | (3,700) | (235) | 3,095 | 22 | (7,431) | (77) | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 94,650 | $ | 1,263 | $ | 16,851 | $ | 1,071 | $ | 213,200 | $ | 1,516 | $ | 96,776 | $ | 1,002 | ||||||||||
By-product metal revenues | (235) | (3) | (558) | (36) | (565) | (5) | (1,118) | (11) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 94,415 | $ | 1,260 | $ | 16,293 | $ | 1,035 | $ | 212,635 | $ | 1,511 | $ | 95,658 | $ | 991 | ||||||||||
Meadowbank Complex | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 907 | 364 | 1,798 | 1,672 | ||||||||||||||||||||||
Production costs | $ | 92,256 | $ | 102 | $ | 20,551 | $ | 56 | $ | 210,105 | $ | 117 | $ | 104,207 | $ | 62 | ||||||||||
Production costs (C$) | C$ | 124,802 | C$ | 138 | C$ | 27,743 | C$ | 76 | C$ | 283,116 | C$ | 157 | C$ | 138,973 | C$ | 83 | ||||||||||
Inventory and other adjustments (C$)(v) | 1,088 | 1 | (5,047) | (14) | (4,994) | (2) | (7,698) | (4) | ||||||||||||||||||
Minesite operating costs (C$) | C$ | 125,890 | C$ | 139 | C$ | 22,696 | C$ | 62 | C$ | 278,122 | C$ | 155 | C$ | 131,275 | C$ | 79 | ||||||||||
Meliadine Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii)(vi) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 94,775 | 78,093 | 224,125 | 109,506 | ||||||||||||||||||||||
Production costs | $ | 66,937 | $ | 706 | $ | 55,376 | $ | 709 | $ | 182,523 | $ | 814 | $ | 83,263 | $ | 760 | ||||||||||
Inventory and other adjustments(iv) | (919) | (9) | 2,845 | 37 | 2,044 | 9 | 1,679 | 16 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 66,018 | $ | 697 | $ | 58,221 | $ | 746 | $ | 184,567 | $ | 823 | $ | 84,942 | $ | 776 | ||||||||||
By-product metal revenues | (106) | (2) | — | — | (308) | (1) | (18) | — | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 65,912 | $ | 695 | $ | 58,221 | $ | 746 | $ | 184,259 | $ | 822 | $ | 84,924 | $ | 776 | ||||||||||
Meliadine Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii)(vii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 368 | 312 | 1,012 | 447 | ||||||||||||||||||||||
Production costs | $ | 66,937 | $ | 182 | $ | 55,376 | $ | 177 | $ | 182,523 | $ | 180 | 83,263 | $ | 186 | |||||||||||
Production costs (C$) | C$ | 89,673 | C$ | 244 | C$ | 73,018 | C$ | 234 | C$ | 246,043 | C$ | 243 | C$ | 110,085 | C$ | 246 | ||||||||||
Inventory and other adjustments (C$)(v) | (1,258) | (4) | 3,790 | 12 | (675) | — | 2,759 | 6 | ||||||||||||||||||
Minesite operating costs (C$) | C$ | 88,415 | C$ | 240 | C$ | 76,808 | C$ | 246 | C$ | 245,368 | C$ | 243 | C$ | 112,844 | C$ | 252 | ||||||||||
Canadian | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(i)(ii)(viii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 63,093 | 81,573 | 179,016 | 249,554 | ||||||||||||||||||||||
Production costs | $ | 51,654 | $ | 819 | $ | 52,533 | $ | 644 | $ | 137,643 | $ | 769 | $ | 153,433 | $ | 615 | ||||||||||
Inventory and other adjustments(iv) | (962) | (16) | (755) | (9) | 2,677 | 15 | 347 | 1 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 50,692 | $ | 803 | $ | 51,778 | $ | 635 | $ | 140,320 | $ | 784 | $ | 153,780 | $ | 616 | ||||||||||
By-product metal revenues | (1,995) | (31) | (1,645) | (20) | (5,015) | (28) | (4,673) | (19) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 48,697 | $ | 772 | $ | 50,133 | $ | 615 | $ | 135,305 | $ | 756 | $ | 149,107 | $ | 597 | ||||||||||
Canadian | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(i)(iii)(ix) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 2,251 | 2,645 | 6,800 | 7,804 | ||||||||||||||||||||||
Production costs | $ | 51,654 | $ | 23 | $ | 52,533 | $ | 20 | $ | 137,643 | $ | 20 | $ | 153,433 | $ | 20 | ||||||||||
Production costs (C$) | C$ | 68,840 | C$ | 31 | C$ | 70,590 | C$ | 27 | C$ | 184,691 | C$ | 27 | C$ | 204,182 | C$ | 26 | ||||||||||
Inventory and other adjustments (C$)(v) | (3,016) | (2) | (775) | (1) | (1,102) | — | 931 | — | ||||||||||||||||||
Minesite operating costs (C$) | C$ | 65,824 | C$ | 29 | C$ | 69,815 | C$ | 26 | C$ | 183,589 | C$ | 27 | C$ | 205,113 | C$ | 26 | ||||||||||
Kittila Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 53,149 | 61,343 | 163,069 | 130,756 | ||||||||||||||||||||||
Production costs | $ | 45,747 | $ | 861 | $ | 44,447 | $ | 725 | $ | 132,471 | $ | 812 | $ | 104,080 | $ | 796 | ||||||||||
Inventory and other adjustments(iv) | (2,477) | (47) | 33 | — | (5,698) | (35) | (8,794) | (67) | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 43,270 | $ | 814 | $ | 44,480 | $ | 725 | $ | 126,773 | $ | 777 | $ | 95,286 | $ | 729 | ||||||||||
By-product metal revenues | (76) | (1) | (17) | — | (169) | (1) | (149) | (1) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 43,194 | $ | 813 | $ | 44,463 | $ | 725 | $ | 126,604 | $ | 776 | $ | 95,137 | $ | 728 | ||||||||||
Kittila Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 429 | 507 | 1,349 | 1,123 | ||||||||||||||||||||||
Production costs | $ | 45,747 | $ | 107 | $ | 44,447 | $ | 88 | $ | 132,471 | $ | 98 | $ | 104,080 | $ | 93 | ||||||||||
Production costs (€) | € | 37,531 | € | 87 | € | 39,959 | € | 79 | € | 116,189 | € | 86 | € | 92,757 | € | 83 | ||||||||||
Inventory and other adjustments (€)(v) | (1,924) | (4) | (259) | (1) | (5,118) | (4) | (8,429) | (8) | ||||||||||||||||||
Minesite operating costs (€) | € | 35,607 | € | 83 | € | 39,700 | € | 78 | € | 111,071 | € | 82 | € | 84,328 | € | 75 | ||||||||||
Pinos Altos Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 30,937 | 34,832 | 78,127 | 119,302 | ||||||||||||||||||||||
Production costs | $ | 33,131 | $ | 1,071 | $ | 34,652 | $ | 995 | $ | 87,233 | $ | 1,117 | $ | 95,572 | $ | 801 | ||||||||||
Inventory and other adjustments(iv) | 992 | 32 | 649 | 18 | (4,030) | (52) | 2,885 | 24 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 34,123 | $ | 1,103 | $ | 35,301 | $ | 1,013 | $ | 83,203 | $ | 1,065 | $ | 98,457 | $ | 825 | ||||||||||
By-product metal revenues | (13,164) | (426) | (9,353) | (268) | (25,380) | (325) | (26,500) | (222) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 20,959 | $ | 677 | $ | 25,948 | $ | 745 | $ | 57,823 | $ | 740 | $ | 71,957 | $ | 603 | ||||||||||
Pinos Altos Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore processed (thousands of | 558 | 519 | 1,252 | 1,495 | ||||||||||||||||||||||
Production costs | $ | 33,131 | $ | 59 | $ | 34,652 | $ | 67 | $ | 87,233 | $ | 70 | $ | 95,572 | $ | 64 | ||||||||||
Inventory and other adjustments(v) | 609 | 2 | 393 | — | (6,509) | (6) | 2,081 | 1 | ||||||||||||||||||
Minesite operating costs | $ | 33,740 | $ | 61 | $ | 35,045 | $ | 67 | $ | 80,724 | $ | 64 | $ | 97,653 | $ | 65 | ||||||||||
Creston Mascota Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 6,567 | 9,596 | 34,397 | 41,461 | ||||||||||||||||||||||
Production costs | $ | 7,585 | $ | 1,155 | $ | 8,544 | $ | 890 | $ | 29,017 | $ | 844 | $ | 27,382 | $ | 660 | ||||||||||
Inventory and other adjustments(iv) | 129 | 20 | 448 | 47 | (88) | (3) | 100 | 3 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 7,714 | $ | 1,175 | $ | 8,992 | $ | 937 | $ | 28,929 | $ | 841 | $ | 27,482 | $ | 663 | ||||||||||
By-product metal revenues | (2,651) | (404) | (2,586) | (269) | (9,481) | (276) | (8,097) | (195) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 5,063 | $ | 771 | $ | 6,406 | $ | 668 | $ | 19,448 | $ | 565 | $ | 19,385 | $ | 468 | ||||||||||
Creston Mascota Mine | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii) | September 30, 2019 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore processed (thousands of tonnes) | 188 | 284 | 526 | 973 | ||||||||||||||||||||||
Production costs | $ | 7,585 | $ | 40 | $ | 8,544 | $ | 30 | $ | 29,017 | $ | 55 | $ | 27,382 | $ | 28 | ||||||||||
Inventory and other adjustments(v) | (127) | — | 316 | 1 | (765) | (1) | (591) | — | ||||||||||||||||||
Minesite operating costs | $ | 7,458 | $ | 40 | $ | 8,860 | $ | 31 | $ | 28,252 | $ | 54 | $ | 26,791 | $ | 28 | ||||||||||
La | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||||||||||||||||
Gold production (ounces) | 22,776 | 18,386 | 62,581 | 61,574 | ||||||||||||||||||||||
Production costs | $ | 16,108 | $ | 707 | $ | 15,055 | $ | 819 | $ | 51,577 | $ | 824 | $ | 48,903 | $ | 794 | ||||||||||
Inventory and other adjustments(iv) | 1,180 | 52 | 1,501 | 81 | (1,699) | (27) | 2,106 | 34 | ||||||||||||||||||
Cash operating costs (co-product basis) | $ | 17,288 | $ | 759 | $ | 16,556 | $ | 900 | $ | 49,878 | $ | 797 | $ | 51,009 | $ | 828 | ||||||||||
By-product metal revenues | (441) | (19) | (526) | (28) | (1,121) | (18) | (1,771) | (28) | ||||||||||||||||||
Cash operating costs (by-product basis) | $ | 16,847 | $ | 740 | $ | 16,030 | $ | 872 | $ | 48,757 | $ | 779 | $ | 49,238 | $ | 800 | ||||||||||
La | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||||
Per Tonne(iii) | September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||||||||||||||||
Tonnes of ore processed (thousands of | 1,559 | 1,102 | 3,869 | 3,998 | ||||||||||||||||||||||
Production costs | $ | 16,108 | $ | 10 | $ | 15,055 | $ | 14 | $ | 51,577 | $ | 13 | $ | 48,903 | $ | 12 | ||||||||||
Inventory and other adjustments(v) | 1,052 | 1 | 1,285 | 1 | (2,333) | — | 698 | — | ||||||||||||||||||
Minesite operating costs | $ | 17,160 | $ | 11 | $ | 16,340 | $ | 15 | $ | 49,244 | $ | 13 | $ | 49,601 | $ | 12 |
Notes: |
(i) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic mine. |
(ii) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of total cash costs per ounce. |
(iii) Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of minesite costs per tonne. |
(iv) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. Other adjustments include primarily the addition of smelting, refining and marketing charges to production costs. |
(v) This inventory and other adjustments reflect production costs associated with the portion of production still in inventory and smelting, refining and marketing charges associated with production. |
(vi) The Meliadine mine's cost calculations per ounce of gold produced for the three and nine months ended September 30, 2020 exclude 1,982 ounces of payable gold production, which were produced during these periods as commercial production at the Tiriganiaq open pit deposit has not yet been achieved. |
(vii) The Meliadine mine's cost calculations per tonne for the three and nine months ended September 30, 2020 exclude 13,374 tonnes of ore from the Tiriganiaq open pit deposit, which were processed during these periods as commercial production at the Tiriganiaq open pit deposit has not yet been achieved. |
(viii) The Canadian Malartic mine's cost calculations per ounce of gold produced for the three and nine months ended September 30, 2020 exclude 13,305 and 18,930 ounces of payable gold production, respectively, which were produced during these periods as commercial production at the Barnat deposit has not yet been achieved. |
(ix) The Canadian Malartic mine's cost calculations per tonne for the three and nine months ended September 30, 2020 exclude 469,966 and 731,309 tonnes of ore from the Barnat deposit, respectively, which were processed during these periods as commercial production at the Barnat deposit has not yet been achieved. |
Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(United States dollars per ounce of gold produced, except where noted) | 2020 | 2019 | 2020 | 2019 | |||||||
Production costs per the condensed interim consolidated statements of income | $ | 412,803 | $ | 316,346 | $ | 1,049,299 | $ | 872,736 | |||
Adjusted gold production (ounces)(i)(ii)(iii)(iv)(v) | 477,406 | 443,803 | 1,214,211 | 1,204,902 | |||||||
Production costs per ounce of adjusted gold production | $ | 865 | $ | 713 | $ | 864 | $ | 724 | |||
Adjustments: | |||||||||||
Inventory and other adjustments(vi) | (30) | 10 | — | (3) | |||||||
Total cash costs per ounce of gold produced (co-product basis)(vii) | $ | 835 | $ | 723 | $ | 864 | $ | 721 | |||
By-product metal revenues | (71) | (70) | (59) | (78) | |||||||
Total cash costs per ounce of gold produced (by-product basis)(vii) | $ | 764 | $ | 653 | $ | 805 | $ | 643 | |||
Adjustments: | |||||||||||
Sustaining capital expenditures (including capitalized exploration) | 189 | 179 | 195 | 174 | |||||||
General and administrative expenses (including stock options) | 55 | 62 | 68 | 71 | |||||||
Non-cash reclamation provision, sustaining leases and other | 8 | 9 | 10 | 10 | |||||||
All-in sustaining costs per ounce of gold produced (by-product basis) | $ | 1,016 | $ | 903 | $ | 1,078 | $ | 898 | |||
By-product metal revenues | 71 | 70 | 59 | 78 | |||||||
All-in sustaining costs per ounce of gold produced (co-product basis) | $ | 1,087 | $ | 973 | $ | 1,137 | $ | 976 |
Notes: |
(i) Adjusted gold production for the three and nine months ended September 30, 2020 excludes 1,982 ounces of payable gold from the Tiriganiaq open pit deposit at the Meliadine mine, which were produced prior to the achievement of commercial production at the Tiriganiaq open pit deposit. |
(ii) Adjusted gold production for the three and nine months ended September 30, 2020 excludes 13,305 and 18,930 ounces of payable gold from the Barnat deposit at the Canadian Malartic mine, respectively, which were produced prior to the achievement of commercial production at the Barnat deposit. |
(iii) Adjusted gold production for the three and nine months ended September 30, 2019 excludes 33,134 and 35,281 ounces of payable gold from the Amaruq deposit at the Meadowbank mine, respectively, which were produced prior to the achievement of commercial production at the Amaruq deposit. |
(iv) Adjusted gold production for the nine months ended September 30, 2019 excludes 47,281 ounces of payable gold production at the Meliadine mine, which were produced prior to the achievement of commercial production. |
(v) Adjusted gold production for the nine months ended September 30, 2019 excludes 5 ounces of payable gold production at the Lapa mine, which were credited to the Company as a result of final refining reconciliations following the cessation of mining and processing operations at the Lapa mine on December 31, 2018. |
(vi) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. Other adjustments include primarily the addition of smelting, refining and marketing charges to production costs. |
(vii) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of total cash cost per ounce of gold produced. |
Reconciliation of Net Income to Operating Margin(i) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(thousands of | 2020 | 2019 | 2020 | 2019 | |||||||
Net income for the period | $ | 222,654 | $ | 76,667 | $ | 306,390 | $ | 141,471 | |||
Income and mining taxes expense | 110,035 | 62,789 | 167,181 | 93,326 | |||||||
Other expenses (income) | 9,132 | 1,549 | 37,407 | (1,553) | |||||||
Foreign currency translation loss (gain) | 4,321 | (1,347) | 11,489 | 4,990 | |||||||
(Gain) loss on derivative financial instruments | (29,724) | 2,378 | (49,297) | (10,296) | |||||||
Finance costs | 21,439 | 25,721 | 74,201 | 78,797 | |||||||
General and administrative | 26,291 | 27,336 | 82,380 | 85,555 | |||||||
Amortization of property, plant, and mine development | 173,173 | 143,293 | 456,147 | 395,738 | |||||||
Exploration and corporate development | 30,488 | 28,227 | 74,468 | 81,029 | |||||||
Operating margin(i) | $ | 567,809 | $ | 366,613 | $ | 1,160,366 | $ | 869,057 |
Note: |
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of operating margin. |
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