Agnico Eagle Mines Limited Provides Update on Its Summer 2014 Exploration Activities At the New IVR Project, Nunavut
Aug 25 14
Agnico Eagle Mines Limited provided an update on its summer 2014 exploration activities at the new IVR project, located 50 kilometres northwest of the eadowbank mine in Nunavut. Highlights include: Continuing expansion of IVR discovery - Exploration drilling in July and August has expanded the scope of the mineralization at the IVR property, which has now reached four zones. Since the beginning of the project a total of 102 drill holes (18,702 metres) have been completed (2013-2014). In the R zone, the best intercept in this period was 5.6 grams per tonne gold (capped) over 12.8 metres estimated true width including 11.7 g/t gold (capped) over 4.6 metres. New Whale Tail zone discovery - The best intercepts from this period in the Whale Tail zone include 5.5 g/t gold (capped) over 19.8 metres estimated true width including 7.1 g/t gold (capped) over 9.6 metres estimated true width, 8.1 g/t gold (capped) over 21.6 metres estimated true width including 27.3 g/t gold (capped) over 4.5 metres and 7.2 g/t gold (capped) over 7.5 metres estimated true width at 289 metres vertical depth. Gold-bearing boulders discovered - A 600 metre long boulder field containing large blocks of quartz vein material (locally with sulphides and visible gold) has been located approximately 3.5 kilometres west of the main IVR area. A drill rig has been mobilized to test this target area. Second phase of drilling is underway - An estimated 20,000 metre drill program is expected to be completed by mid-September. IVR Project - 2014 Drilling Expands New Mineralized Zones: The 408-square-kilometre IVR property is located within Inuit Owned Land and a 100% interest was acquired in April 2013 subject to a mineral exploration agreement with Nunavut Tunngavik Incorporated. The property is located approximately 50 kilometres northwest of the Meadowbank mine in Nunavut. Agnico Eagle's recent work has revealed the potential for multiple mineralized zones within a 2-kilometre-wide northeast-southwest corridor that can be traced along strike for at least 10 kilometres. Based on the current information, all four structures are open in all directions including at depth. Exploration drilling in July and August 2014 on the IVR property has resulted in significant expansion of the Whale Tail zone, which is now recognized over a strike length of more than 1,000 metres (and remains open in all directions), and the discovery of boulders containing visible gold at more than 3.5 kilometres west of the current drilling area.
Agnico Eagle Mines Limited Releases Updated Mineral Reserves and Resources for its Canadian Malartic Mine
Aug 13 14
Agnico Eagle Mines Limited released updated mineral reserves and resources for its 50%-owned Canadian Malartic mine. The mineral reserves and resources set out in this news release reflect the aggregate of Agnico Eagle and Yamana's 50% interests in the Canadian Malartic mine. Proven and probable in-pit mineral reserves are 8.9 million ounces of gold based on a $1,300 per ounce engineered pit design, a cut-off grade between 0.28 g/t and 0.35 g/t gold, and CAD/USD exchange rate of 1.10. The addition of the 5% royalty payable to Osisko Gold Royalties Ltd. increased the highest cut-off grade to approximately 0.35 g/t gold from 0.33 g/t gold. This represents a decrease of about 60,000 ounces to the reserve base from previous estimates published by Osisko. A $100 per ounce decline in the gold price would reduce the reserves by approximately 3.3% or 310,000 ounces. Tonnage amounts and contained metal amounts presented in this table have been rounded to the nearest million, so aggregate amounts may differ from column totals. Mineral reserves are a subset of mineral resources. The assumptions used for the June 15, 2014 mineral reserves and resources estimates at the Canadian Malartic mine reported by Agnico Eagle in the above tables were $1,300 per ounce gold, a cut-off grade between 0.28 g/t and 0.35 g/t gold (depending on the deposit) and a CAD/USD exchange rate of 1.10.
Agnico Eagle Mines Limited Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Revised Production and Tax Rate Guidance for 2014; Provides Production Guidance for 2015
Jul 30 14
Agnico Eagle Mines Limited reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, revenues from mining operations were $437.8 million against $336.4 million last year. Income before income and mining taxes and other items was $58.4 million against loss before income and mining taxes and other items of $23.5 million last year. Net income was $37.7 million or $0.20 per basic and diluted share against net loss of $24.4 million or $0.14 per basic and diluted share last year. Cash provided by operating activities was $197.7 million against $75.3 million last year. Additions to property, plant and mine development was $101.5 million against $171.8 million last year. The net income result includes a non-cash foreign currency translation loss of $8.7 million or $0.05 per share, non-cash stock option expense of $5.1 million or $0.03 per share, non-recurring losses of $6.1 million or $0.03 per share related to the Osisko Mining Corporation acquisition, and non-recurring gains of $4.8 million or $0.03 per share. Excluding these items would result in an adjusted net income of $52.8 million, or $0.28 per share.
For the six months, revenues from mining operations were $929.6 million against $756.8 million last year. Income before income and mining taxes and other items was $212.3 million against $25.1 million last year. Net income was $146.5 million or $0.81 per basic and diluted share against net loss of $0.5 million or $0.00 per basic and diluted share last year. Cash provided by operating activities was $445.4 million against $221.4 million last year. Additions to property, plant and mine development was $200.3 million against $302.4 million last year. Financial results in the 2014 period were positively affected by significantly higher gold production due primarily to higher grades at Meadowbank and contributions from commercial production at Goldex and La India. The higher net income and cash provided by operating activities in 2014 was in spite of lower realized metal prices and is a result of significantly higher gold production.
In light of the Osisko acquisition, and on the back of continued strong operating performance in the second quarter, the company announced revised production guidance of approximately 1,360,000 million ounces of gold for 2014, which is a 14% increase over previous guidance. Given the continued strong operating results, 2014 production guidance, excluding the ounces from Canadian Malartic, is now expected to be 1,225,00 million ounces to 1,245,000 million ounces, while total cash costs on a by-product basis are forecast to be $650 per ounce to $675 per ounce. Including Canadian Malartic, 2014 production is now expected to be 1,350,000 million oto 1,370,000 million ounces, while total cash costs on a by-product basis are expected to remain in the range of $650 per ounce to $675 per ounce. Expected all-in sustaining cost (AISC) guidance calculated on a by-product basis for 2014 is unchanged at $990 per ounce. For 2014, capital expenditures are expected to total approximately $468 million, representing a $37 million increase from the previously announced figure which is due primarily to the acquisition of Osisko but also additional expenditures at Goldex for acceleration of the ramp into the D Zone, and at Kittila to reflect the completion of the plant expansion ahead of plan. The company's overall tax rate is expected to be between 35% and 40%. Previous guidance was 40% to 45%. The decrease is largely due to the high proportion of the profit being generated by the Meadowbank mine, which continues to be sheltered by tax pools.
The company updated CapEx. CapEx is going to increase in 2014 by about $40 million. The company expects production estimate for 2014 go from a level of 1.19 million ounces to 1.235 million ounces.
Additionally, due to optimization efforts, particularly at Meadowbank, Kittila and in Southern Business, the company anticipates increasing gold production guidance for 2015, beyond the addition of the Canadian Malartic mine. The company will quantify this increase as soon as possible once the budget process is further advanced.