In c0330 sent at 11:26e today, please note the updated URLs for
Longitudinal illustrations that detail the drill results. Full corrected copy
follows:
Agnico-Eagle reports third quarter results
(All amounts expressed in U.S. dollars unless otherwise noted)
Stock Symbols: AEM (NYSE)
AGE (TSE)
TORONTO, Oct. 25 /CNW/ - Agnico-Eagle Mines Limited today reported a
third quarter net loss of $4.8 million, or $0.07 per share compared to a net
loss of $1.4 million, or $0.02 per share in the third quarter of 2000.
Included in third quarter results is a non-cash write-off of $1.6 million, or
$0.02 per share, related to an exploration subsidiary's Tonkin Springs
property in Nevada. Quarterly operating cash flow was essentially unchanged at
$1.4 million, or $0.02 per share when compared to 2000.
Highlights for the third quarter include:
- A year over year increase of 64 percent and 17 percent in year to date
and quarterly gold production, respectively.
- A year over year lowering of total cash costs to produce an ounce of
gold of 43 percent and 9 percent for the year to date and quarter,
respectively.
- Deep drilling at LaRonde encounters second thickest intercept in the
property's history in Zone 20 North and also expands the previously
known envelope of the high grade Zone 20 South.
"In spite of a very weak market for its byproduct metals, LaRonde has
been able to achieve its production and cost targets thus far in 2001", said
Sean Boyd, President and Chief Executive Officer. "Our aggressive deep
exploration program is also reaping rewards for our shareholders as larger
thicknesses and higher gold grades continue to be encountered", added Mr.
Boyd.
The Company is hosting a conference call to discuss third quarter results
and to provide an update on exploration and development activities at LaRonde
on Thursday October 25th, 2001 at 2:00 p.m. (EST). To participate in the
conference call, please dial (416) 641-6440. To access the rebroadcast, please
dial 1-800-558-5253 and enter the reservation number 19773236. The conference
call can also be accessed over the internet through the Company's website
www.agnico-eagle.com.
QUARTERLY MANAGEMENT DISCUSSION AND ANALYSIS
Results of Operations
In spite of an improvement of over 80 percent in the contribution from
mine operations, the net loss for the quarter was $4.8 million compared to
$1.4 million in the same period of 2000. The higher loss was due to an
increase in depreciation, as LaRonde is now operating at a 5,000 ton per day
rate versus 3,600 tons per day in 2000, and the non-cash write-off of $1.6
million.
Onsite operating costs at LaRonde improved by approximately 7 percent in
the third quarter to C$53 per ton of ore milled compared to C$57 per ton in
the same quarter of 2000. In the third quarter, production averaged 4,400 tons
of ore per day as the mine experienced a scheduled shutdown of two weeks in
July in order to complete modifications to the Penna Shaft to accommodate the
planned expansion to 7,000 tons per day. During this time, the mill was shut
down for one week for scheduled maintenance. An additional week of production
was lost in the mill in August due to an electrical problem with the SAG mill.
In September, the mill resumed normal operations at an average rate of 5,500
tons of ore per day. Total cash operating costs (including accrued El Coco
royalties) to produce an ounce of gold improved to $181 per ounce from $199
per ounce. A gold production increase of 17 percent to 45,928 ounces, together
with a significant increase in byproduct silver and zinc production and a
weaker Canadian dollar were slightly offset by weaker prices for the
byproducts.
As outlined in Management's Discussion and Analysis in the Company's 2000
Annual Report, production for 2001 remains on target for approximately 230,000
ounces of gold. Total cash operating costs are expected to be approximately
$150 per ounce, slightly above budget as depressed byproduct prices are
expected to be substantially offset by lower than budget mine site operating
costs and a weaker Canadian dollar. Other than the non-cash charge noted
above, which is included in exploration expense, there have been no material
revisions in the expectations outlined in the 2000 Annual Report for other
consolidated revenues and expenses.
Liquidity and Capital Resources
During the third quarter, Agnico-Eagle's consolidated cash and cash
equivalents decreased by $11 million to $76.4 million and working capital
decreased by approximately $6 million to $95.9 million. Cash flow from
operating activities in the third quarter was essentially unchanged at $1.4
million compared to the third quarter of 2000 as a significant increase in
gold and byproduct silver and zinc production was offset by weaker prices for
byproduct metals.
For the three months, capital expenditures were $9.4 million compared to
$15.3 million in the corresponding 2000 period. Much of the physical
infrastructure was still under construction in 2000 while the capital program
in 2001 is focused primarily on underground development in the lower
gold/copper rich portion of the Penna Shaft. As previously announced, the
capital expenditure budget for 2001 has been increased from $30.8 million,
published in the 2000 Annual Report, to $35.5 million to reflect the
commencement of the incremental expansion to 7,000 tons per day at LaRonde.
As previously disclosed, the Company issued 10.4 million shares for net
proceeds of $76.2 million in the second quarter.
EXPLORATION
During the quarter, exploration at LaRonde entered a new phase made
possible by increased underground access at depth and on the El Coco Property.
As a result, a total of eight drills were in operation at the end of
September. The highlights included the extension of Zone 20 South at depth,
increased definition of Zone 20 North on Level 194 and 215, and continued
success confirming Zone 20 North at depth. The results continued to confirm
the quality and size of the LaRonde deposit and its potential to be larger
than the current reserve and resource outline.
Drilling on Zone 20 South continued on two fronts, firstly delineation
drilling for production purposes between Level 102 and 110 and exploration
drilling for potential new extensions below Level 215 at depth. The upper
level delineation drill holes were drilled from production draw points and
they continued to confirm the reserve estimates above Level 110. Some of the
more recent results are shown below:
<<
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(2.0 oz/ton) (oz/ton)
(ft)
-------------------------------------------------------------------------
10221761 9.2 0.52 2.95 0.26 2.58
-------------------------------------------------------------------------
10221781 13.1 0.62 5.01 0.48 7.91
-------------------------------------------------------------------------
10221782 18.4 0.30 6.38 0.51 10.27
-------------------------------------------------------------------------
10221783 21.7 0.58 3.96 0.31 5.70
-------------------------------------------------------------------------
10621801 13.1 0.61 3.85 0.69 7.64
-------------------------------------------------------------------------
10621803 18.0 0.70 4.84 0.51 9.51
-------------------------------------------------------------------------
11021852 11.8 0.26 3.90 0.18 5.52
-------------------------------------------------------------------------
One of our primary exploration objectives at depth, is to explore the
southern geological contact of the felsic volcanics and the sediments which is
known to host high grade Zone 20 South. This area has previously been too far
from available infrastructure to reach with a drill. We are now able to drill
this horizon from both Level 194 and 215. A total of twelve drill holes are
planned from Levels 194 and 215 with two drill holes completed to date. Both
drill holes encountered mineralization outside of the currently known resource
envelope.
Drill Hole 3220-04 continued south of Zone 20 North and intersected Zone
20 South down plunge from its previously known deepest intersection returning
the following value:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(2.0 oz/ton) (oz/ton)
(ft)
-------------------------------------------------------------------------
3220-04 9.2 0.23 0.52 0.09 1.29
-------------------------------------------------------------------------
This particular intersection is situated approximately 450 feet below the
presently known Zone 20 South outline. The second drill hole was completed
from the Level 215 development heading. It also intersected the zone to the
east of the present reserve outline and returned the following value:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(2.0 oz) (oz/ton)
(ft)
-------------------------------------------------------------------------
3215-11 13.1 0.13 0.57 0.12 0.05
-------------------------------------------------------------------------
In both drill holes, the grades and types of mineralization (i.e. pyrite-
sphalerite) are very similar to what was initially encountered in Zone 20
South in the upper levels of the mine. The objective is to follow up on the
most recent results obtained along the favourable southern contact. Additional
high-grade mineralization at depth could have a significant impact on the
present mine plan.
A total of five drills are currently dedicated to defining Zone 20 North.
Two machines are dedicated to lower level definition drilling on Levels 194
and 215, two machines on the deep exploration program and one on delineation
drilling for production purposes above Level 152.
Delineation drilling above Level 152 continued to confirm the existence
of higher-grade gold pockets within Zone 20 North and large thicknesses of
massive sulfide mineralization. Some of the more recent results have been
tabulated below:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(1.5 oz) (oz/ton)
(ft)
-------------------------------------------------------------------------
11420651 - Au 7.5 0.35 3.40 1.101 0.02
-------------------------------------------------------------------------
- Zn 43.6 0.05 4.08 0.06 7.66
-------------------------------------------------------------------------
11020663 - Au 9.2 0.16 3.79 1.45 0.26
-------------------------------------------------------------------------
- Zn 44.9 0.02 2.87 Lv 7.73
-------------------------------------------------------------------------
15220602 - Au 9.5 0.12 1.45 0.32 0.12
-------------------------------------------------------------------------
- Zn 58.7 0.02 2.67 0.04 12.39
-------------------------------------------------------------------------
Definition drilling on both Levels 194 and 215 will be comprised of 20
drill holes drilled from east to west. The purpose of these drill holes is to
confirm the grade and thickness of the mineralization at these levels. Two
initial drill holes have been completed on Level 215 on the eastern part of
the deposit. The results are as follows:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(2.0 oz) (oz/ton)
(ft)
-------------------------------------------------------------------------
3215-10 10.8 0.15 2.32 0.78 0.16
-------------------------------------------------------------------------
3215-11Au 30.2 0.12 1.68 0.58 0.52
-------------------------------------------------------------------------
3215-11Zn 28.9 0.05 1.40 0.07 5.80
-------------------------------------------------------------------------
Both of these drills returned values greater than those used for this
area in the 2001 reserve model at those locations.
On Level 194 the first drill hole has been completed and the results are
pending. Level development on Level 194 has now intersected Zone 20 North.
Preliminary muck samples have returned values grading 0.24 ounces per ton
gold, 8.65 ounces per ton silver, 0.70% copper and 5.30% zinc.
Zone 20 North is also being drilled along the Level 235 horizon (7,700
feet below surface) for ore reserve/resource conversion. The latest result
from this program is as follows:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(1.5 oz) (oz/ton)
(ft)
-------------------------------------------------------------------------
3220-04 44.3 0.19 0.41 0.35 0.02
-------------------------------------------------------------------------
or 18.4 0.27 0.83 0.79 0.03
-------------------------------------------------------------------------
This drill hole was located approximately 600 feet west of the values
encountered in Drill Hole 3220-03 reported the previous quarter. The drilling
continued to confirm the increasing gold-copper grades at depth and along
strike at the Level 235 horizon. The drill hole also indicated that there were
zones of higher-grade mineralization within the larger drill intercept.
The six-hole deep drill program continued during the quarter with slight
modifications. Drill Hole 3160-13G is still in progress although at the end of
the quarter it had experienced minor technical difficulties approximately 150
feet from the target area. The drill hole was also deeper than originally
anticipated (9,800 feet below surface) and slightly further to the west.
The most interesting result was obtained from Drill Hole 3220-05 which
intersected Zone 20 North at a depth of 8,957 feet and approximately 500 feet
to the east of any previous drilling in this area. It intersected the
following value:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(1.5 oz) (oz/ton)
(ft)
-------------------------------------------------------------------------
3220-05 82.0 0.17 0.96 0.41 0.04
-------------------------------------------------------------------------
Or 32.8 0.22 1.52 0.84 0.03
-------------------------------------------------------------------------
To date, this is the second thickest intercept obtained at depth at
LaRonde. The intersection appears to have a higher-grade core and also seems
to indicate a thickening in the mineralization to the east, contrary to what
was originally expected. With these results, an additional drill hole, at
depth and to the east, is planned to be drilled in November.
An additional intercept was obtained from the same drill hole 40 feet to
the north of the above values and intersected the following value:
-------------------------------------------------------------------------
Drill Hole True Gold(oz/ton) Silver Copper(%) Zinc(%)
Thickness Cut(1.5 oz) (oz/ton)
(ft)
-------------------------------------------------------------------------
3220-05 9.2 0.16 0.07 0.02 0.05
-------------------------------------------------------------------------
The gold values were associated with massive pyrite and are still being
evaluated as it is not known whether it is a new zone or associated with Zone
20 North.
Exploration drilling and development resumed on the adjoining El Coco
Property. A total of 693 feet of level development was completed on the 20th
Level exploration drift. Total development to date is 1,485 feet. Drilling
continued to focus on extending previously drilled holes over the boundary on
to the El Coco Property. The first new drill cut out was completed during the
month of June and drilling has started from this drill station.
The Longitudinal illustrations that detail the drill results presented in
this report can be viewed and/or downloaded from the Company's website.
www.agnico-eagle.com (Press Release) or
http://files.newswire.ca/3/85x14_20n_DEL.gif
http://files.newswire.ca/3/85x14_20n_EXP.gif
http://files.newswire.ca/3/85x14_20s_DEL.gif
http://files.newswire.ca/3/85x14_20s_EXP.gif
http://files.newswire.ca/3/ElcocoUnderground.jpg
http://files.newswire.ca/3/PLAN_194.gif
http://files.newswire.ca/3/PLAN_215.gif
A "Qualified Person" as defined by the Ontario Securities Commission
National Instrument 43-101, within Agnico Eagle Mines Limited, has reviewed
the exploration results contained within this release.
This press release contains certain "forward-looking statements" (within
the meaning of the United States Private Securities Litigation Reform Act of
1995) that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual results and
future events could differ materially from those anticipated in such
statements. Risks and uncertainties are disclosed under the heading "Risk
Factors" in the Company's Annual Information Form (AIF) filed with certain
Canadian securities regulators (including the Ontario and Quebec Securities
Commissions) and with the United States Securities and Exchange Commission (as
Form 20-F).
Agnico-Eagle Mines Limited is an established Canadian gold producer with
operations located principally in Northwestern Quebec and exploration and
development activities in Quebec, Ontario and Nevada. Agnico-Eagle's operating
history includes almost three decades of continuous gold production primarily
from underground mining operations. Current proven and probable reserves stand
at 3.3 million contained ounces, with an additional 4.5 million ounces in the
mineral resource category at its LaRonde Mine.
Summarized Quarterly Data (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months ended Nine months ended
dollars, except where September 30, September 30,
noted) 2001 2000 2001 2000
-------------------------------------------------------------------------
Consolidated Financial Data
Income and cash flow
Revenues from mining
operations $ 18,946 $ 15,276 $ 68,537 $ 38,554
Net loss for period $ (4,801) $ (1,356) $ (6,170) $ (8,266)
Net loss per share
(basic and fully-
diluted) $ (0.07) $ (0.02) $ (0.10) $ (0.15)
Operating cash flow
(before non-cash
working capital) $ 1,399 $ 1,535 $ 10,932 $ (4,216)
Operating cash flow
per share $ 0.02 $ 0.03 $ 0.19 $ (0.08)
Weighted average number
of shares (in thousands) 67,200 54,389 59,238 54,319
Operating and Financial
Summary
LaRonde Division
Revenues from mining
operations $ 18,946 $ 15,276 $ 68,537 $ 38,554
Mine operating costs 13,995 12,586 46,755 36,219
-------------------------------------------------------------------------
Mine operating profit $ 4,951 $ 2,690 $ 21,782 $ 2,335
-------------------------------------------------------------------------
-----------------------------------------------
Tons of ore milled 386,929 326,648 1,324,317 958,415
Head grades:
Gold 0.13 0.14 0.14 0.13
Silver 2.48 1.60 2.36 1.16
Zinc 5.22% 3.28% 5.26% 2.24%
Copper 0.20% 0.34% 0.19% 0.33%
Recovery rates:
Gold 91.29% 90.27% 92.95% 90.66%
Silver 76.80% 65.80% 80.10% 62.90%
Zinc 78.40% 67.20% 78.50% 66.70%
Copper 52.60% 58.30% 58.00% 64.10%
Payable production:
Gold (ounces) 45,928 39,230 168,488 102,844
Silver (ounces in
thousands) 570 266 1,927 541
Zinc (pounds in
thousands) 26,808 12,562 92,670 24,128
Copper (pounds in
thousands) 716 1,222 2,681 3,749
Realized prices per unit
of production (US$):
Gold (per ounce) $ 284 $ 278 $ 271 $ 284
Silver (per ounce) $ 4.21 $ 4.92 $ 4.40 $ 5.07
Zinc (per pound) $ 0.37 $ 0.53 $ 0.42 $ 0.53
Copper (per pound) $ 0.66 $ 0.84 $ 0.75 $ 0.82
Onsite operating costs
per ton milled
(Canadian dollars) $ 53 $ 57 $ 52 $ 56
-------------------------------------------------------------------------
-----------------------------------------------
Operating costs per gold
ounce produced (US$):
Onsite operating costs
(including reclamation
provision) $ 291 $ 320 $ 269 $ 352
Less: Non-cash reclamation
provision (5) (5) (5) (5)
Net byproduct
revenues (121) (116) (133) (94)
-------------------------------------------------------------------------
Cash operating costs $ 165 $ 199 $ 131 $ 253
Accrued El Coco royalties 16 - 13 -
-------------------------------------------------------------------------
Total cash costs $ 181 $ 199 $ 144 $ 253
Non-cash costs:
Reclamation provision 5 5 5 5
Depreciation and
amortization 51 34 49 38
-------------------------------------------------------------------------
Total operating costs $ 237 $ 238 $ 198 $ 296
-------------------------------------------------------------------------
-----------------------------------------------
Consolidated Balance Sheets Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars) September 30, December 31,
2001 2000
-------------------------------------------------------------------------
(Unaudited)
ASSETS
Current
Cash and cash equivalents $ 76,413 $ 13,906
Metals awaiting settlement and gold bullion 19,995 15,235
Income taxes recoverable - 2,001
Inventories:
In-process and unsold metal products 5,900 3,101
Supplies 3,594 3,420
Prepaid expenses and other 3,900 5,081
-------------------------------------------------------------------------
Total current assets 109,802 42,744
Investments and other assets 16,198 18,012
Future income and mining tax assets 23,323 21,499
Mining properties 296,711 282,497
-------------------------------------------------------------------------
$ 446,034 $ 364,752
-------------------------------------------------------------------------
--------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 10,461 $ 17,188
Dividends payable 504 1,651
Income and mining taxes payable 1,540 2,175
Interest payable 1,401 2,846
-------------------------------------------------------------------------
Total current liabilities 13,906 23,860
-------------------------------------------------------------------------
Long-term debt 191,203 180,666
-------------------------------------------------------------------------
Reclamation provision and other liabilities 3,905 5,567
-------------------------------------------------------------------------
Future income and mining tax liabilities 20,407 18,204
-------------------------------------------------------------------------
Minority interest 1,725 2,565
-------------------------------------------------------------------------
Shareholders' Equity
Common shares
Authorized - unlimited
Issued 67,061,654 (2000 - 56,139,480) 243,066 158,252
Other paid-in capital 14,521 14,535
Contributed surplus 5,560 4,665
Deficit (48,259) (36,880)
Company's own shares held by a subsidiary company - (6,682)
-------------------------------------------------------------------------
Total shareholders' equity 214,888 133,890
-------------------------------------------------------------------------
$ 446,034 $ 364,752
-------------------------------------------------------------------------
--------------------------
See accompanying notes
Interim Consolidated Statements Agnico-Eagle Mines Limited
of Loss (Unaudited)
-------------------------------------------------------------------------
(thousands of United States Three months Nine months
dollars, except per share amounts) ended ended
September 30, September 30,
2001 2000 2001 2000
-------------------------------------------------------------------------
REVENUES
Revenues from mining operations $ 18,946 $ 15,276 $ 68,537 $ 38,554
Interest and sundry income 1,213 321 1,729 974
-------------------------------------------------------------------------
20,159 15,597 70,266 39,528
COSTS AND EXPENSES
Production 13,995 12,586 46,755 36,219
Exploration 2,697 672 4,583 2,019
Depreciation and amortization 2,521 1,344 8,265 3,949
General and administrative 882 972 2,941 2,901
Capital tax 474 262 1,356 816
Interest 3,279 2,204 11,005 6,626
-------------------------------------------------------------------------
Loss before the undernoted (3,689) (2,443) (4,639) (13,002)
Foreign currency loss (1,112) (136) (1,864) (1,044)
-------------------------------------------------------------------------
Loss before income and mining taxes (4,801) (2,579) (6,503) (14,046)
Income and mining tax recoveries - (1,223) (333) (5,780)
-------------------------------------------------------------------------
Net loss for the period $ (4,801) $ (1,356) $ (6,170) $ (8,266)
-------------------------------------------------------------------------
---------------------------------------
Loss per share
(basic and fully-diluted) $ (0.07) $ (0.02) $ (0.10) $ (0.15)
-------------------------------------------------------------------------
----------------------------------------
See accompanying notes
Interim Consolidated Statements
of Deficit (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months Nine months
dollars) ended ended
September 30, September 30,
2001 2000 2001 2000
-------------------------------------------------------------------------
Balance, beginning of period $ 43,622 $ 36,012 $ 36,880 $ 29,102
Net loss for the period 4,801 1,356 6,170 8,266
-------------------------------------------------------------------------
48,423 37,368 43,050 37,368
Share issue expense (164) - 5,209 -
-------------------------------------------------------------------------
Balance, end of period $ 48,259 $ 37,368 $ 48,259 $ 37,368
-------------------------------------------------------------------------
----------------------------------------
See accompanying notes
Interim Consolidated Statements of
Cash Flows (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months Nine months
dollars) ended ended
September 30, September 30,
2001 2000 2001 2000
-------------------------------------------------------------------------
Operating activities
Net loss for the period $ (4,801) $ (1,356) $ (6,170) $ (8,266)
Add (deduct) items not affecting
cash from operating activities:
Depreciation and amortization 2,521 1,344 8,265 3,949
Provision for (recoveries of)
future income and mining taxes (243) 297 694 (4,580)
Foreign currency translation loss 552 523 1,655 1,362
Amortization of deferred interest
and financing costs 1,241 910 3,652 3,240
Other 2,129 (183) 2,836 79
-------------------------------------------------------------------------
1,399 1,535 10,932 (4,216)
Net premiums paid on metals,
foreign currency and
interest rate option contracts - (20) (34) (304)
Net change in non-cash working capital
balances related to operations
Metals awaiting settlement and
gold bullion 926 (5,439) (4,760) (10,630)
Inventories (1,939) (212) (2,973) 1,792
Prepaid expenses and other (1,102) 977 1,181 1,180
Income and mining taxes
recoverable and payable (718) (1,876) 242 999
Accounts payable and accrued
liabilities (661) 3,235 (6,728) 3,238
Interest payable (1,443) (1,107) (1,445) (1,107)
-------------------------------------------------------------------------
Cash flows used in
operating activities (3,538) (2,907) (3,585) (9,048)
-------------------------------------------------------------------------
Investing activities
Additions to mining properties (9,421) (15,301) (26,476) (47,181)
Increase in investments
and other (253) (124) (218) (114)
-------------------------------------------------------------------------
Cash flows used in investing
activities (9,674) (15,425) (26,694) (47,295)
-------------------------------------------------------------------------
Financing activities
Dividends paid - - (1,114) (1,100)
Common shares issued 1,508 422 84,524 1,151
Share issue expense 164 - (5,209) -
Proceeds from long-term debt - 5,000 7,500 42,500
Sale of the Company's own shares
held by a subsidiary company
and other 1,082 156 7,479 345
-------------------------------------------------------------------------
Cash flows from financing activities 2,754 5,578 93,180 42,896
-------------------------------------------------------------------------
Effect of exchange rate changes on
cash and cash equivalents (464) 279 (394) 74
Net increase (decrease) in cash and
cash equivalents (10,922) (12,475) 62,507 (13,373)
Cash and cash equivalents,
beginning of period 87,335 21,690 13,906 22,588
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 76,413 $ 9,215 $ 76,413 $ 9,215
-------------------------------------------------------------------------
---------------------------------------
See accompanying notes
Other operating cash flow
information:
Interest paid during the period $ 3,674 $ 2,249 $ 8,936 $ 4,493
-------------------------------------------------------------------------
---------------------------------------
Taxes paid (recovered)
during the period $ 688 $ 1,195 $ (1,516)$ (1,780)
-------------------------------------------------------------------------
---------------------------------------
>>
-------------------------------------------------------------------------
AGNICO-EAGLE MINES LIMITED
Notes to Interim Consolidated Financial Statements
(Unaudited)
-------------------------------------------------------------------------
1. Basis of Presentation
The unaudited interim consolidated financial statements have been
prepared in U.S. dollars following the accounting policies as set out in
the fiscal 2000 annual consolidated financial statements.
The unaudited interim consolidated financial statements do not conform in
all material respects to the requirements of generally accepted
accounting principles for annual financial statements. Accordingly, these
unaudited interim financial statements should be read in conjunction with
the fiscal 2000 annual consolidated financial statements.
In the opinion of management, the unaudited interim consolidated
financial statements reflect all adjustments, which consist only of
normal and recurring adjustments, necessary to present fairly the
financial position at September 30, 2001 and the results of operations
and cash flows for the three month and nine month periods ended September
30, 2001 and 2000.
2. Use of Estimates
The preparation of the consolidated financial statements in conformity
with generally accepted accounting principles require management to make
estimates and assumptions that affect the amounts reported in the
consolidated financial statements and accompanying notes. Management
believes that the estimates used in the preparation of the consolidated
financial statements are reasonable and prudent; however, actual results
could differ from these estimates.
3. Capital Stock
In June 2001, the Company completed a public offering of 10,350,000
common shares for net proceeds of $76.2 million, after deducting share
issue expense of $5.2 million.
The following table presents the maximum number of common shares that
would be outstanding if all dilutive instruments outstanding at September
30, 2001 were exercised:
Common shares outstanding at September 30, 2001 67,061,654
Senior convertible notes (based on convertible
note holders' option) 7,053,893
Employees' stock options 3,698,450
-----------------------------------------------------------------------
77,813,997
-----------------------------------------------------------------------
----------
4. Subsequent Event
Effective October 16, 2001, the Company acquired the remaining 50.5%
ownership interest in Mentor Exploration and Development Co., Limited not
already owned by it, by way of a court approved statutory plan of
arrangement, for net consideration of $3.3 million. The consideration was
satisfied by the issuance of 369,348 common shares of the Company. This
business combination is accounted for by the purchase method, and has
resulted in a decrease in contributed surplus of $0.8 million and a
decrease in minority interest of $2.5 million, respectively.
5. Comparative Figures
Certain items in the comparative unaudited interim consolidated financial
statements have been reclassified from statements previously presented to
conform to the presentation of the 2001 unaudited interim consolidated
financial statements.
-30-
For further information: Sean Boyd, President and CEO, Agnico-Eagle
Mines Limited, (416) 947-1212
|