Stock Symbols: AGE (TSE, ME)
AEM (NYSE)
TORONTO, Feb. 25 /CNW/ - Agnico-Eagle Mines Limited today reported a 1999
net loss of US$14.7 million, or US$0.28 per share compared to a net loss of
US$7.5 million, or US$0.15 per share in 1998. Operating cash flow before
changes in non-cash working capital items declined to a deficit of
US$10.6 million, or US$0.20 per share, compared to cash flow of
US$1.3 million, or US$0.03 per share in 1998.
"The worst gold price environment in decades and lower gold grades in the
soon-to-be depleted Shafts No. 1 and No. 2 mining areas at our LaRonde Mine
contributed to Agnico-Eagle's disappointing operating results in 1999", said
Sean Boyd, President and Chief Executive Officer. "However, gold production is
ahead of budget in the first two months of 2000 and the expansion program at
LaRonde is on schedule to begin mining the new mineralized zones at an
increased production rate through Shaft No. 3 in the second half of 2000.
Furthermore with the substantial increase in ore reserves and resources
reported today, the LaRonde deposit is currently the largest gold deposit in
Canada with a combined gold reserve and resource of 6.1 million contained
ounces", added Mr. Boyd.
Agnico-Eagle reported a net loss of US$5.0 million, or US$0.09 per share
for the quarter ended December 31, 1999 compared to a net loss of
US$0.9 million, or US$0.01 per share in the same period last year. Operating
cash flow decreased to a deficit of US$3.5 million, or US$0.07 per share in
the fourth quarter compared to cash flow of US$0.7 million, or US$0.01 per
share in the 1998 fourth quarter.
OPERATING RESULTS
The increased loss in 1999 from that reported in 1998 was due to a seven
percent decrease in the gold price realized (US$274 per ounce versus US$296
per ounce) and a decrease in production, only partly offset by lower
production costs at the LaRonde mine.
Onsite operating costs improved by 15 percent in 1999 to C$56 per ton of
ore milled compared to C$66 per ton in 1998. However, cash operating costs to
produce an ounce of gold increased to US$277 per ounce from US$212 per ounce
as gold production decreased to 90,035 ounces from 150,443 ounces. The decline
in gold production is due to lower gold grades as mining activities deplete
the remaining ore reserves from Shaft No. 1 and Shaft No. 2. Similarly, in the
fourth quarter of 1999, onsite operating costs improved by 23 percent to C$53
per ton of ore milled compared to C$69 per ton in the fourth quarter of 1998.
STRONG FINANCIAL POSITION
Consolidated cash and cash equivalents were US$22.6 million at
December 31, 1999 compared to US$76.3 million at the end of 1998. In 1999,
US$15 million was drawn under the Company's long-term bank facility. Cash used
for capital expansion and acquisitions in 1999 was US$68.9 million. Including
the undrawn portion of its long-term bank facility, Agnico-Eagle currently has
over US$100 million of liquidity.
In the years 2000 and 2001, approximately US$56.1 million and
US$21.0 million will be spent, respectively, to complete the expansion of the
LaRonde mine to 5,000 tons per day from 2,000 tons per day, as well as on
sustaining capital. Cash flows from the newly expanded mine are expected to be
sufficient to fund the expansion in the medium term. However, since much of
the capital for construction will be expended in the immediate short-term,
additional liquidity will be provided by the bank facility to meet working
capital requirements. The Company expects to draw an additional US$40 to US$50
million in 2000 under its bank facility to complete construction at LaRonde.
Agnico-Eagle's gold production is budgeted to increase in 2000 to 174,000
ounces at a cash cost of US$168 per ounce. The increase in budgeted production
is attributable to the completion of shaft sinking at LaRonde's Shaft No. 3
and the planned changeover to production in this shaft by the end of June,
2000. As a result, much of the production forecast for 2000 will occur in the
second half of the year. Production in the first half of 2000 will continue to
be characterized by lower grade ore from the nearly depleted ore zones at
Shaft No. 1 and Shaft No. 2. However, the LaRonde mill is expected to operate
at an average annual rate of 3,900 tons per day in 2000, with a rate of up to
5,000 tons per day by the end of the year when the mill expansion is
completed. The full benefits of the expansion to 5,000 tons per day are not
expected to be realized until 2001 when much of the initial development of the
lower gold-rich portion of Zone 20 North is completed. Gold production is
expected to reach 221,000 ounces in 2001 at a cash cost of US$133 per ounce
and is expected to exceed 300,000 ounces per annum in 2002 at a cash cost of
US$115 per ounce.
ORE RESERVES AND RESOURCES
Since the last ore reserve and resource update in June 1999,
Agnico-Eagle's gold ore reserves have doubled to 3.0 million ounces and the
total gold ore reserve and resource has increased 22 percent to 6.1 million
ounces. The gold price used for the ore reserve and resource calculation was
unchanged from 1998 at US$300 per gold ounce. The by-product metal prices used
were US$5.00 per silver ounce, US$0.80 per copper pound and US$0.50 per zinc
pound. Ore reserves are diluted while the resource remains undiluted.
On a year over year basis, the total ore reserve and resource tonnage
(including all three shafts) increased 31 percent from 39.7 million tons to
52.1 million tons. Proven and probable reserves increased 173 percent from
1.1 million ounces and the total gold ore reserve and resource increased 36
percent from 4.5 million ounces.
<<
2000 Shaft No. 3 Ore Reserve and Resource Summary
-------------------------------------------------------------------------
Category Zone Au(oz/t) Ag(oz/t) Cu(%) Zn(%) Au(oz) Tons
(thousands) (thousands)
-------------------------------------------------------------------------
Probable 20N(Au) 0.15 2.30 0.71 1.71 1,468 9,643
-------------------------------------------------------------------------
Probable 20N(Zn) 0.03 2.71 0.10 7.48 448 16,440
-------------------------------------------------------------------------
Probable 20S(El
Coco) 0.30 2.08 0.33 3.99 369 1,235
-------------------------------------------------------------------------
Probable 20S 0.19 1.01 0.35 1.61 422 2,275
-------------------------------------------------------------------------
Probable 6 0.11 1.60 0.19 4.02 7 65
-------------------------------------------------------------------------
Probable 7 0.19 1.08 0.39 1.77 187 1,004
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Subtotal 0.10 2.37 0.33 4.90 2,901 30,661
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Resource 20N(Au) 0.17 0.67 0.75 0.06 2,711 15,750
-------------------------------------------------------------------------
Resource 20N(Zn) 0.01 1.24 0.04 9.32 33 2,337
-------------------------------------------------------------------------
Resource 20S(El
Coco) 0.28 0.86 0.13 2.64 11 39
-------------------------------------------------------------------------
Resource 20S 0.12 0.42 0.07 1.09 74 627
-------------------------------------------------------------------------
Resource 6 0.12 1.15 0.26 1.94 127 1,040
-------------------------------------------------------------------------
Resource 7 0.12 1.68 0.49 1.61 95 798
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Subtotal 0.15 0.79 0.61 1.30 3,051 20,591
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total 0.12 1.74 0.45 3.45 5,952 51,252
-------------------------------------------------------------------------
2000 Total Ore Reserve and Resource - Shafts No. 1, No. 2, No. 3 Summary
-------------------------------------------------------------------------
Category Zone Au(oz/t) Ag(oz/t) Cu(%) Zn(%) Au(oz) Tons
(thousands) (thousands)
-------------------------------------------------------------------------
Total P&P No. 1,
No. 2,
No. 3 0.10 2.33 0.33 4.78 3,016 31,546
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Grand Total No. 1,
No. 2,
No. 3 0.12 1.72 0.44 3.41 6,067 52,137
-------------------------------------------------------------------------
>>
This is the seventh consecutive year that the total ore reserve and
resource position has increased at the LaRonde Property. The current proven
and probable ore reserve position of 3.0 million contained gold ounces is the
highest in the property's 13-year operating history. The transfer of resource
to ore reserves in 1999 was made possible by improved underground drill access
provided by Shaft No. 3.
Zone 20 North continued to grow into a large gold-copper massive sulfide
orebody. On a year over year basis, overall tonnage increased 40 percent from
31.6 million tons to 44.2 million tons. Total Zone 20 North contained ore
reserve and resource gold ounces increased 62 percent from 2.9 million ounces
to the current position of 4.7 million ounces. The gold resource calculation
did not incorporate all the deep drill results but did include values returned
from drill hole 3194-08 which intersected 0.18 ounces of gold, and 0.95%
copper over a true thickness of 75.5 feet at a depth of 8,900 feet below
surface. The gold resource calculation did not include the values obtained in
drill hole 3170-11B which intersected 0.19 ounces of gold over a true
thickness of 51.8 feet at a depth of 9,727 feet below surface. Zone 20 North
remains open in all directions below Shaft No. 3's depth of 7,350 feet.
The 1999 drilling program also transferred the upper gold resource of
321,901 ounces located on the El Coco Property into ore reserves. The current
El Coco ore reserve position stands at 368,493 ounces. The year over year
comparison of resource to ore reserve has been tabulated below:
<<
El Coco Reserve - Resource Comparison
-------------------------------------------------------------------------
Year Category Au(oz/t) Ag(oz/t) Cu(%) Zn(%) Au(oz) Tons
(thousands)(thousands)
-------------------------------------------------------------------------
1999 Resource 0.37 1.88 0.44 2.81 322 869
-------------------------------------------------------------------------
2000 Probable
Reserve 0.30 2.08 0.33 3.99 369 1,234
-------------------------------------------------------------------------
>>
DRILLING AND EXPLORATION
Since the last drilling update in December 1999, five drills have been in
operation on definition and exploration drilling. Three drills have been
working from Shaft No. 3 drill stations on Levels 194, 206, and 215. The
drills are completing the level infill drilling of Zones 7, 20 South and 20
North. Upon completion of this phase of drilling, the deep drilling program
will be resumed to test Zones 20 North and 20 South between depths of 7,400
feet and 8,800 feet below surface. This phase of drilling will be started by
the end of March.
Two additional drills have been working in the upper part of the mine
between Levels 118 and 149 focusing on Zone 20 North and the eastern extension
of Zone 20 South - El Coco.
Zone 20 North - Definition Drilling
Since the last definition drilling update on Zone 20 North, two drill
holes have been completed on Level 215 (7,054 feet below surface) as well as
additional delineation drill holes in the upper part of the mine. The results
have been tabulated below:
<<
-------------------------------------------------------------------------
True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz/t) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
11820661Au 15.4 0.20 1.95 0.83 0.38
-------------------------------------------------------------------------
Zn 24.6 0.06 5.75 0.03 7.18
-------------------------------------------------------------------------
12220641Au 15.1 0.12 0.66 0.38 0.35
-------------------------------------------------------------------------
Zn 22.0 0.09 2.44 0.04 8.68
-------------------------------------------------------------------------
14920631Au 19.0 0.12 1.66 0.25 0.49
-------------------------------------------------------------------------
Zn 50.9 0.03 2.29 0.13 9.28
-------------------------------------------------------------------------
14920674Au 18.0 0.08 0.89 0.31 0.21
-------------------------------------------------------------------------
Zn 76.8 0.04 1.56 0.07 7.11
-------------------------------------------------------------------------
3215-01 Au* 62.3 0.15 1.18 0.81 0.14
-------------------------------------------------------------------------
3215-02 Au* 26.2 0.12 1.45 0.22 0.11
-------------------------------------------------------------------------
Zn 31.2 0.04 2.03 0.07 5.63
-------------------------------------------------------------------------
*Preliminary
>>
The Level 215 drilling continued to confirm mineralized true thicknesses
in the range of 50 to 60 feet. Further drilling to the west on Level 215 is
restricted by access and will await the start of the Level 215 exploration
drift to the west of Shaft No. 3, scheduled to start in the third quarter of
this year. Based on all of the drilling information obtained to date the area
with the best potential to increase the size of Zone 20 North lies to the
west.
The drilling continued to confirm the trend to gold-copper mineralization
at depth. The type of gold-copper mineralization encountered along Levels 194,
206, and 215 closely resembles the results previously obtained from the two
deep exploration drill holes. The footwall zone encountered on all three shaft
levels and in the deep drilling is characterized by a garnet bearing andesite.
This relationship and increasing gold/copper ratios are consistent at depth.
The major transition from zinc-silver mineraliation to gold-copper
mineralization occurred at the Level 194 horizon. The large (50 feet and
greater) gold-copper intersections were not noted in the upper levels of Zone
20 North. The observed mineralogy of both the deep and shaft level drilling is
similar to that of Shaft No. 1's Main Zone. The greatest thicknesses of
economic mineralization have been encountered towards the west. The potential
for further expansion is excellent as Zone 20 North is open at its point of
greatest overall thickness and it has not been drilled in this area. The
western extension of Zone 20 North will be tested from the Level 215
exploration drift.
Zone 20 South and Zone 7 - Definition Drilling
To finalize the Zone 20 South-El Coco production stoping outlines,
additional definition drilling was completed on Levels 118 to 125. The results
have been summarized below:
<<
-------------------------------------------------------------------------
True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz/t) (oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
11821714 28.2 0.27 1.93 0.38 2.76
-------------------------------------------------------------------------
12221763 23.9 0.39 1.56 0.70 2.61
-------------------------------------------------------------------------
12521742 21.6 0.30 0.99 0.60 0.72
-------------------------------------------------------------------------
3122-34 29.5 0.54 3.26 0.38 6.96
-------------------------------------------------------------------------
3122-38 25.3 0.23 1.69 0.19 3.18
-------------------------------------------------------------------------
3122-38 9.5 0.45 4.22 0.16 8.83
-------------------------------------------------------------------------
>>
Level 215 drilling intersected Zone 7, however the results were
disappointing returning lower gold values resulting in a decrease in previous
resource estimates. With the western plunge and the greater potential to
increase the reserve and resource tonnage contained in Zones 20 North and
South, most of the exploration drilling has now been focused on these zones.
Property Acquisition & Regional Exploration Update
This week, Agnico-Eagle acquired a 50 percent interest in Barrick Gold's
"Bruce Property" which is located immediately to the east of Laronde's Sphinx
Property. The Bruce Property consists of 43 claims covering a total area of
three square miles. Under the terms of the acquisition agreement, Agnico-Eagle
has committed to spend C$600,000 (US$400,000) over three years in exploration
on the property. The property covers the favourable stratigraphy that hosts
all of the operating mines along the Cadillac-Bousquet Belt. With this latest
property acquisition, Agnico-Eagle now controls the entire eastern portion of
this favourable geological belt covering a distance of approximately 12 miles.
Agnico-Eagle currently has one surface drill in operation on its Sphinx
Property. The drill is testing zinc mineralization and alteration previously
encountered by surface drilling completed at a depth of 1,500 feet late last
year. Historically, the occurrence of zinc mineralization on the LaRonde
Property has been a favourable indicator for locating economic mineralization.
LARONDE EXPANSION PROGRAM
The year 2000 will be a major turning point for the LaRonde Mine and for
Agnico-Eagle as the expansion program achieves several significant milestones.
Currently the mine ranks as one of the largest underground development
projects in North America. This year will be characterized by three phases 1)
Shaft No. 3 changeover , 2) hoist upgrade and 3) mill capacity increased to
5000 tons per day. All these phases are on schedule to meet their expected
completion dates.
Shaft No. 3 has reached a depth of 7,300 feet and will be completed
during the first week of March. The No. 1 loading station on Level 152 has
been completed and the conveyor and crushing system is expected to be
completed by the end of April. Structural steel for the Level 220 loading
station (7,221 feet below surface) is currently being installed. Final
preparations are underway for the changeover phase scheduled to start upon
completion of shaft sinking.
Foundations for the new headframe backlegs have been completed. The
contract for headframe modifications has been awarded. Steel fabrication is in
progress and modifications to the headframe are scheduled to start at the end
of March.
Foundations for the new hoist motor are being poured. The hoist is in the
final stages of the manufacturing process. Delivery is scheduled for the end
of April with installation expected to be complete by the middle of June.
Hoisting at 3,600 tons per day from the underground operations will be started
in July and ramped up to 5,000 tons per day by the beginning of the fourth
quarter 2000.
Development performance continues to be excellent with ramp access in the
upper part of the mine now entirely complete. Currently ramp access is
available from Level 110 down to Level 150. Mining blocks are being prepared
on Levels 122, 125, and 149 for Zone 20 North and on Levels 118 to 125 for
Zone 20 South. Ground conditions have been excellent. Dilution on the eight
mining blocks extracted to date has averaged approximately 11 percent.
The mill reached the 3,600 ton per day rate at the beginning of January.
Peak rates of 3,900 tons per day have been reached. Tests conducted on the SAG
mill confirmed its ability to process at a rate of 5,000 tons per day. The
mill is currently processing a 40,000-ton composite bulk sample from Zones 20
South and North. Zinc recoveries have varied between 63% to 84% and are
currently averaging 78%. Gold recoveries have ranged between 88% and 95% and
are currently averaging 92%. Both zinc and gold grades are as projected.
The paste backfill plant has been completed and is in the commissioning
phase. Work on the precious metals recovery circuit is progressing well.
Foundations have been completed and building and tank erection is in progress.
Engineering work is nearing completion on upgrading both the zinc and copper
flotation circuits. Construction is scheduled to start in May.
This press release contains certain "forward-looking statements" (within
the meaning of the United States Private Securities Litigation Reform Act of
1995) that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual results and
future events could differ materially from those anticipated in such
statements. Other risks and uncertainties are disclosed under the heading
"Risk Factors" in the Company's Annual Information Form (AIF) filed with
certain Canadian securities regulators (including the Ontario and Quebec
Securities Commissions) and with the United States Securities and Exchange
Commission (as Form 20-F).
Agnico-Eagle Mines Limited is an established Canadian gold producer with
operations located principally in northwestern Quebec and exploration and
development activities in Quebec, Ontario and Nevada. Agnico's operating
history includes 25 years of continuous gold production primarily from
underground mining operations. Current proven and probable gold reserves stand
at 3.0 million contained ounces, with an additional 3.1 million ounces in the
mineral resource category at its LaRonde Mine. Agnico-Eagle is currently
focused on the expansion and large scale exploration program of its LaRonde
Mine which is expected to result in increased gold production and expanded
gold reserves.
<<
Summarized Quarterly Data Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months ended Year ended
dollars, except per share and December 31, December 31,
per ounce amounts) (Note 1) 1999 1998 1999 1998
-------------------------------------------------------------------------
Consolidated Financial Data
Income and cash flow
Revenues from mining
operations (Note 2) $ 6,732 $ 11,197 $ 29,605 $ 43,202
Net loss for period $ (4,977) $ (853) $ (14,675)$ (7,475)
Loss per share $ (0.09) $ (0.01) $ (0.28) $ (0.15)
Operating cash flow (Note 3) $ (3,505) $ 724 $ (10,605) $ 1,261
Operating cash flow per
share $ (0.07) $ 0.01 $ (0.20) $ 0.03
Gold production - ounces 16,211 37,056 90,035 150,443
Average gold price -
per ounce realized $ 292 $ 294 $ 274 $ 296
Average exchange rate -
US$ per Canadian dollar 0.6792 0.6482 0.6725 0.6751
Weighted average number
of shares - basic
(in thousands) 53,462 53,182 53,331 50,005
Operating and Financial
Summary
LaRonde Division
Revenues from mining
operations (Note 2) $ 6,732 $ 11,197 $ 29,605 $ 43,202
Mine operating costs 8,214 8,487 30,110 33,255
-------------------------------------------------------------------------
Mine operating profit (loss) $ (1,482) $ 2,710 $ (505) $ 9,947
-------------------------------------------------------------------------
Tons of ore milled 227,826 188,681 798,396 776,752
Grade - ounces of gold per
ton 0.09 0.21 0.13 0.21
Gold production - ounces 16,211 37,056 90,035 150,443
Silver production - ounces 82,661 62,184 277,327 269,985
Zinc production - pounds 5,127,658 1,041,394 9,778,278 1,231,446
Copper production - pounds 475,661 1,526,855 3,282,471 6,151,063
Onsite operating costs per ton
milled (Canadian dollars) $ 53 $ 69 $ 56 $ 66
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating costs per gold
ounce produced (US$):
Onsite operating costs
(including reclamation
provision) $ 503 $ 227 $ 334 $ 229
Less: Non-cash reclamation
provision (3) (3) (4) (3)
Net byproduct revenues (135) (20) (53) (14)
-------------------------------------------------------------------------
Cash operating costs $ 365 $ 204 $ 277 $ 212
Non-cash costs:
Reclamation provision 3 3 4 3
Depreciation and amortization 74 41 61 42
-------------------------------------------------------------------------
Total operating costs $ 442 $ 248 $ 342 $ 257
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Notes to Summarized Quarterly and Consolidated Financial Data:
(1) Effective January 1, 1999, Agnico-Eagle changed its functional and
reporting currency from Canadian to United States dollars. The
temporal method is applied for the accounting currency transactions
and translation. Comparative figures for periods prior to January 1,
1999, denominated into Canadian dollars, are translated into United
States dollars, under generally accepted Canadian accounting
principles, using the closing spot Canadian and United States
currency exchange rate as at December 31, 1998 of $1.5333.
(2) Revenues from mining operations consists of gold and byproduct
revenues net of smelting, refining and transportation charges.
(3) Before non-cash working capital adjustments.
Consolidated Balance Sheets Agnico-Eagle Mines Limited
As at December 31,
-------------------------------------------------------------------------
(thousands of United States dollars)
1999 1998
-------------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 22,588 $ 76,262
Metals awaiting settlement and gold bullion 5,857 23,210
Income and mining taxes recoverable 2,353 714
Inventories:
In-process 2,390 -
Supplies 3,739 3,089
Prepaid expenses and other 3,857 3,469
-------------------------------------------------------------------------
Total current assets 40,784 106,744
-------------------------------------------------------------------------
Investments, loans, advances and other assets 21,605 13,560
Future income and mining tax assets 12,022 4,061
Mining properties 219,817 156,388
-------------------------------------------------------------------------
$ 294,228 $ 280,753
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 9,770 $ 6,832
Dividends payable 1,682 1,660
Income and mining taxes payable 2,913 2,885
Current interest due on senior convertible
notes 1,896 1,897
-------------------------------------------------------------------------
Total current liabilities 16,261 13,274
-------------------------------------------------------------------------
Long-term debt 124,122 105,239
-------------------------------------------------------------------------
Reclamation provision and other liabilities 5,061 4,507
-------------------------------------------------------------------------
Future income and mining tax liabilities 9,695 9,695
-------------------------------------------------------------------------
Minority interest 3,291 3,592
-------------------------------------------------------------------------
Shareholders' Equity
Common shares
Authorized - unlimited
Issued - 55,391,451 (1998 - 55,112,625) 152,992 151,307
Other paid-in capital 14,535 14,535
Contributed surplus 4,058 3,886
Deficit (27,271) (11,499)
Company's own shares held by a subsidiary
company (8,516) (13,783)
-------------------------------------------------------------------------
Total shareholders' equity 135,798 144,446
-------------------------------------------------------------------------
$ 294,228 $ 280,753
-------------------------------------------------------------------------
Consolidated Statements of Loss Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months ended Year ended
dollars, except per share December 31, December 31,
amounts) 1999 1998 1999 1998
-------------------------------------------------------------------------
REVENUES
Revenues from mining operations
(net of smelting, refining
and transportation charges) $ 6,732 $ 11,197 $ 29,605 $ 43,201
Interest and sundry income 213 1,086 2,506 3,916
-------------------------------------------------------------------------
6,945 12,283 32,111 47,117
COSTS AND EXPENSES
Production 8,352 8,853 30,585 34,535
Exploration 1,787 757 3,838 2,371
Depreciation and amortization 1,201 1,523 5,463 6,171
General and administrative 1,056 1,004 4,044 3,590
Capital tax 427 264 1,192 1,197
Interest 2,170 2,163 8,637 8,596
Other 4 - 974 -
-------------------------------------------------------------------------
Loss before the undernoted (8,052) (2,281) (22,622) (9,343)
Foreign currency loss (1,032) (278) (329) (1,442)
-------------------------------------------------------------------------
Loss before income and
mining tax recoveries (9,084) (2,559) (22,951) (10,785)
Income and mining tax recovery 4,107 1,706 8,276 3,310
-------------------------------------------------------------------------
Net loss for the period $ (4,977) $ (853) $ (14,675) $ (7,475)
-------------------------------------------------------------------------
Loss per share $ (0.09) $ (0.01) $ (0.28) $ (0.15)
-------------------------------------------------------------------------
Consolidated Statements of Cash Flows Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of Three months ended Year ended
United States dollars) December 31, December 31,
1999 1998 1999 1998
-------------------------------------------------------------------------
Operating activities
Net loss for the period $ (4,977) $ (853) $ (14,675) $ (7,475)
Add (deduct) items not
affecting cash from
operating activities:
Depreciation and amortization 1,201 1,522 5,463 6,171
Provision for future income
and mining recoveries (3,321) (1,835) (7,961) (3,897)
Foreign-currency
translation loss 2,071 552 2,206 1,634
Amortization of deferred
interest and financing costs
on senior convertible notes 1,074 1,015 4,213 3,909
Reclamation provision and other 447 323 149 919
-------------------------------------------------------------------------
(3,505) 724 (10,605) 1,261
Net premiums paid on metals
and foreign-currency option
contracts (7,527) - (7,527) -
Net change in non-cash working
capital balances related to
operations:
Metals awaiting settlement
and gold bullion (1,029) (1,624) 17,353 734
Inventories (1,085) (450) (3,040) 169
Prepaid expenses and other 287 37 (388) (773)
Income and mining taxes
recoverable and payable (1,343) 187 (1,611) 755
Accounts payable and accrued
liabilities 2,576 931 2,938 1,055
Current interest due on senior
convertible notes 1,107 1,108 (1) 128
-------------------------------------------------------------------------
Cash flows from (used in)
operating activities (10,519) 913 (2,881) 3,329
-------------------------------------------------------------------------
Investing activities
Additions to mining properties (18,342) (13,505) (68,892) (43,774)
Net increase in investments
and other assets (175) 96 (109) (1,034)
-------------------------------------------------------------------------
Cash flows used in
investing activities (18,517) (13,409) (69,001) (44,808)
-------------------------------------------------------------------------
Financing activities
Dividends (53) (21) (1,075) (824)
Share issued by public
offering - - - 65,219
Shares issued under
employee plans 596 151 1,561 602
Share issue costs - 58 - (2,942)
Proceeds from long-term debt 15,000 - 15,000 -
Financing costs (2,942) - (2,942) -
(Purchase) sale of the
Company's own shares by a
subsidiary company and other 5,457 116 5,457 (4,621)
-------------------------------------------------------------------------
Cash flows from financing
activities 18,058 304 18,001 57,434
-------------------------------------------------------------------------
Effect of exchange rate changes
on cash and cash equivalents (1,285) - 207 -
Net increase (decrease) in
cash and cash equivalents (12,263) (12,192) (53,674) 15,955
Cash and cash equivalents,
beginning of period 34,851 88,454 76,262 60,307
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 22,588 $ 76,262 $ 22,588 $ 76,262
-------------------------------------------------------------------------
-------------------------------------------------------------------------
>>
For further information: Sean Boyd, President and CEO, Agnico-Eagle
Mines Limited, (416) 947-1212
|