TORONTO, Feb 19, 2003 (Canada NewsWire via COMTEX) -- (All amounts expressed in U.S. dollars unless otherwise noted) Stock Symbols: AEM (NYSE) AGE (TSX) Agnico-Eagle Mines
Limited today reported significantly improved net earnings of $4.0 million, or
$0.06 per share in 2002, compared to a net loss of $5.4 million, or $0.09 per
share in 2001. In the fourth quarter, net earnings were $0.8 million, or $0.01
per share, compared to a net loss of $0.7 million, or $0.02 per share in the
comparable 2001 period.
Highlights for the year include:
- Record gold production of 260,183 ounces at the LaRonde Mine in Quebec
and full leverage to improved gold price led to improved earnings.
- Record gold reserves and resources, including record proven and
probable gold reserves of 4.0 million ounces (23% increase) at LaRonde.
- Commissioning of LaRonde mill at 7,000 tons per day puts Agnico-Eagle
in position to achieve record gold production of 375,000 ounces (44%
increase) at record low total cash costs of $125 per ounce (31%
decrease) in 2003.
- Strongest balance sheet in Company's history with nearly $280 million
in available cash resources, no gold sold forward and increasing net
free cash flow.
- Discovery of high-grade Lapa gold resource seven miles east of LaRonde.
"Our dominant land position in northwestern Quebec, an aggressive exploration
program, large-scale operations and a solid technical team at LaRonde have put
us in an excellent position to add meaningful value by increasing gold
production in our own backyard. In addition, with Canadian tax pools of $450
million, we are positioned to realize enhanced after-tax returns from potential
new mines in the region," said Sean Boyd, President and Chief Executive Officer.
Improved Profitability in 2002
For the year ended December 31, 2002, Agnico-Eagle reported net earnings of $4.0
million, or $0.06 per share on metal revenues of $108.0 million compared to a
2001 net loss of $5.4 million, or $0.09 per share on metal revenues of $96.0
million. This significant improvement primarily reflects an 11% increase in gold
production and a similar increase in the gold price realized. The earnings
improvement was net of a decrease in byproduct zinc production and prices.
Precious metals sales comprised 87% of metals revenues in 2002, up from 78% in
2001. Operating cash flow improved by 64% to $20.4 million, or $0.28 per share,
from $12.4 million, or $0.20 per share in 2001.
Improved Fourth Quarter Results
In the fourth quarter of 2002, the Company reported net income of $0.8 million,
or $0.01 per share, on metal revenues of $31.6 million, compared to a net loss
of $0.7 million, or $0.02 per share, on metal revenues of $26.5 million in the
comparable 2001 period. The improved results reflect increased gold production,
an improved gold price and lower interest expense, offset somewhat by lower zinc
production and prices. As a result, operating cash flow more than tripled in the
fourth quarter of 2002 to $5.4 million, or $0.07 per share, compared to $1.5
million, or $0.02 per share, in 2001.
LaRonde on Track for Increased Gold Production in 2003
During the fourth quarter, both the mine and mill demonstrated the ability to
operate at 7,000 tons per day. The mill achieved the rated daily capacity of
7,000 tons within 48 hours of start up and has achieved peak rates in excess of
8,000 tons while meeting planned metallurgical recoveries. Hoisting and mining
have already achieved peak rates of 9,000 tons of ore over a 24-hour period.
LaRonde is in a strong position to achieve its 2003 targets of 375,000 ounces of
gold at a total cash operating cost of $125 per ounce.
During the fourth quarter, metallurgical recoveries achieved target, with the
mill averaging 5,847 tons per day, including the six-day plant changeover and
shutdown period at the beginning of October. Excluding the changeover, the mill
averaged 6,330 tons of ore per day. The cash operating cost per ounce of gold
decreased to $128 from $133 in 2001. However, total cash costs, including the El
Coco property royalty, were $198 compared to $181 in the prior year.
For the year 2002, the cash operating cost per ounce was $141, up slightly from
$132 in 2001. However, the increase in total cash costs to $182 from $155 was
mainly due to the increased El Coco royalty.
Operating performance continues to improve in the early part of 2003 with
construction of the Level 219 underground crusher and ore handling facility at
the bottom of the Penna Shaft, which are on schedule for completion in the
second quarter. Underground level development performance was as planned in
January 2003 as a result of the ongoing changeover from contractor to LaRonde
development crews. In addition, new ramp access between Levels 206 and 215 has
provided additional sublevels for ore development. These levels are critical for
achieving 2003 production targets.
Financial Position Strongest in Company's History
During 2002, the Company reduced its net debt to nil and continued to improve
its liquidity, ending the year with available cash resources of $278 million.
Available cash resources are comprised of approximately $153 million in cash and
$125 million of undrawn credit lines. The strengthened liquidity represents an
increase of 139% from $116 million in 2001. This increase is attributable to the
Company's improvement in operating cash flow as well as the refinancing of its
convertible debentures in February 2002 and a unit offering of common shares and
warrants in November 2002. The improvement in available cash resources is net of
$64.8 million of capital investments comprised primarily of the expansion at
LaRonde, compared to $36.3 million invested in 2001.
Gold Reserves and Resources Both at Record Levels
The gold reserves of 4.0 million ounces at LaRonde represent a 23% increase over
the prior year, after production replacement. Both the gold reserves and
resources are records for the Company.
Proven,
Gold Reserves and Resources Summary Probable &
(000's ounces) Indicated Inferred
------------------------------------------------------------------
LaRonde 4,097 3,978
Goldex 997 423
Lapa (80%) - 653
Ellison 41 106
-- ---
December 31, 2002 5,135 5,160
----- -----
December 31, 2001 3,399 5,110
----- -----
Gold reserves and resources were estimated using an assumed gold price of $300
per ounce. The above mineral reserve and resource estimate does not include the
significant byproduct silver, zinc and copper contained in the LaRonde orebody.
Deep Drilling at LaRonde Results in Significant Gold Reserve Conversion
During the fourth quarter, the deep exploration program at LaRonde below the
bottom of the Penna Shaft involved three drills testing the eastern area of Zone
20 North in order to acquire sufficient drill-hole density necessary for the
mineral resource to reserve conversion. As a result, LaRonde converted 1.0
million ounces of gold from resources into reserves. Including production
replacement, LaRonde's gold reserves increased by 23% from 3.3 million ounces to
4.0 million ounces. Before conversion to gold reserves, LaRonde's resources
remained essentially unchanged.
In the fourth quarter, drilling totaling 20,745 feet was completed on the deep
program and some of the more significant results follow:
-------------------------------------------------------------------------
Gold
Drill True (oz/ton)
Hole Thickness Cut Silver Copper Zinc
(ft) From To (1.5 oz) (oz/ton) (%) (%)
-------------------------------------------------------------------------
3215-32 68.9 1570.5 1673.5 0.14 0.39 0.19 0.02
-------------------------------------------------------------------------
3215-33 68.9 1,859.9 1,951.1 0.15 0.19 0.35 0.02
-------------------------------------------------------------------------
3215-34 67.6 2484.2 2581.3 0.12 0.89 0.28 0.04
-------------------------------------------------------------------------
3215-39A 68.9 2462.2 2555.4 0.12 1.19 0.56 0.22
-------------------------------------------------------------------------
3215-41 44.6 1855.6 1904.5 0.20 0.82 0.46 0.04
-------------------------------------------------------------------------
The deep drilling results to date indicate three trends:
1. The eastern limit of Zone 20 North has been defined, indicating that
the rake is shallower to the west than previously interpreted.
2. In contrast, the more tightly spaced drilling results from within the
deposit appear to indicate thicker mineralization and higher grades
than indicated from earlier widely-spaced drilling in Zone 20 North.
3. Drilling has also indicated that the deposit is still open to the
west. The new parallel zone has been intersected at a depth of 8,993
feet below surface. The presence of this more northerly gold zone was
first indicated at depth in drill hole 3215-22F (previously
released).
With 372 feet of drifting completed to date on Level 215, drilling is now
focused along the eastern and central part of Zone 20 North. Currently, three
drills are testing the zone at depth and this program will provide additional
information to evaluate the deep mine project at LaRonde.
Regional Exploration Success: Lapa High-Grade Gold Discovery
The Company is earning an 80% interest in the Lapa property, seven miles east of
LaRonde, under an option agreement with Breakwater Resources Ltd. Agnico-Eagle's
share of the gold resource at Lapa of 653,000 ounces was estimated using a $300
per ounce gold price. Due to its high grade potential and potential operational
synergies arising from its proximity to LaRonde, the Lapa property is an
important part of the Company's regional development and production strategy.
Recent drilling has focused on extending the Contact Zone to the east and at
depth where the zone remains open. To date, the zone has been traced over a
length of 1,300 feet and 2,000 feet vertically. The Lapa property covers an
additional 1.6 miles of favourable contact to explore. Sixteen holes have been
drilled of which 11 intersected the mineralization and confirm that the Contact
Zone is open at depth and to the east. Most of the mineralized drill holes
contained visible gold. The deepest hole 118-03-04A intercepted 99.1 feet of
mineralization at an average gold grade of 0.26 ounces per ton and contained
multiple occurrences of visible gold. However, one of the highest-grade gold
intervals came from drill hole 118-02-08 which did not have visible gold,
demonstrating that high-grade gold values can be obtained even in its absence.
The most recent drill results and previously disclosed drill results used in the
mineral resource calculation follow:
--------------------------------------------------------------
Ore Zone Interval (ft) True Average Grade (oz/t)
---------------------------------- ---------------------------
Cut to
Hole From To Width (ft) Uncut 1.5 oz/t
-------------------------------------------------------------------------
118-02-01A 2,542.9 2,562.6 9.8 0.29 0.28
-------------------------------------------------------------------------
118-02-02B 2,549.8 2,628.9 42.7 0.16 0.16
-------------------------------------------------------------------------
118-02-03 2,500.6 2,515.7 9.8 0.08 0.08
-------------------------------------------------------------------------
118-02-04 3,086.9 3,110.9 16.4 0.60 0.43
-------------------------------------------------------------------------
118-03-04A 3,088.2 3,245.7 99.1 0.26 0.21
-------------------------------------------------------------------------
118-02-05 1,341.2 1,375.6 9.8 0.16 0.16
-------------------------------------------------------------------------
118-02-06 2,681.4 2,709.9 9.5 0.27 0.21
-------------------------------------------------------------------------
118-02-07 3,219.8 3,236.2 10.2 0.26 0.26
-------------------------------------------------------------------------
118-02-08 2,251.0 2,280.5 12.5 0.60 0.60
-------------------------------------------------------------------------
118-03-09 1,203.1 1,203.1 no significant results
-------------------------------------------------------------------------
118-03-10A 1,958.0 1,976.4 9.8 0.55 0.52
-------------------------------------------------------------------------
118-03-11 1,607.6 1,625.0 9.8 0.06 0.06
-------------------------------------------------------------------------
118-03-12A 1,732.3 1,746.4 8.9 0.07 0.07
-------------------------------------------------------------------------
118-03-13A 1,439.6 1,439.6 no significant results
-------------------------------------------------------------------------
118-03-14 2,017.7 2,062.3 26.9 0.17 0.17
-------------------------------------------------------------------------
118-03-15 1,832.7 1,850.4 9.8 0.16 0.16
-------------------------------------------------------------------------
The next $2.2 million phase of drilling will commence in March and continue over
the course of 2003. Four drills will be assigned to infill drilling on 150-foot
centres, conduct deep drilling to test the down-dip extension of the deposit at
depth, test the eastern extent of the Contact Zone and to acquire mineralized
material for metallurgical testing.
Regional Growth Potential: Updated Feasibility Study Underway at Goldex
Property
The Goldex Project, 35 miles east of LaRonde, is currently being reevaluated
based on a 10,000 ton per day mining rate and its potential synergies with the
LaRonde Mine. In addition, Company-owned infrastructure is available that could
be used to reduce capital costs, including the original 16-foot production hoist
from the Penna Shaft, surface ventilation installations and potentially a head
frame, none of which were available at the time of the previous feasibility
study. This original study was based on a stand alone, 5,000 ton per day
operation. Due to the size and thickness of the deposit, a large scale bulk
mining method (potentially block caving) is envisioned to reduce capital, labour
and ongoing development costs. Goldex has the potential to add 225,000 ounces to
the Company's annual production, with a cash cost below $200 per ounce, assuming
a 10,000 ton per day operation and reduced operating costs from economies of
scale and regional synergies.
The gold resource at Goldex of 1.0 million ounces of indicated gold resources
and 0.4 million ounces of inferred resources were estimated using a $300 per
ounce gold price. A rock mechanic specialist has been engaged to reevaluate the
mining method and development options to be incorporated in a new feasibility
study. The results of the study are expected to be released at the Company's
Annual General Meeting of shareholders on June 19, 2003.
Deep Mine Project at LaRonde Progressing
Initial work on the deep development program below the bottom of the Penna Shaft
has evaluated several options, including rehabilitating Shaft No. 1 (not
currently in use), sinking a new shaft to a depth of 10,000 feet, and various
shaft/winze/ramp combinations. Several mining rates have also been evaluated.
Preliminary indications are that the deposit at depth will be economic based on
the current gold resource and with capital costs of approximately $45 to $60 per
ounce.
As a result of this information, development of the Level 215 exploration drift
has been accelerated by 12 months for completion by the end of 2003. The earlier
access will allow for the accelerated transfer of mineral resources to mineral
reserves, speeding up the exploration of the potential new parallel zone to the
west, providing additional information for the deep mining development program
and accelerated exploration on the western side of Zone 20 North. Results of
this scoping study are also anticipated for the Company's Annual General Meeting
in June.
The longitudinal illustrations that detail the drill results presented in this
news release can be viewed and downloaded from the Company's website
www.agnico-eagle.com (Press Release) or:
http://files.newswire.ca/3/Goldex.pdf
http://files.newswire.ca/3/Lapa.pdf
http://files.newswire.ca/3/Laronde20N.pdf
http://files.newswire.ca/3/RegionalMap.pdf
Outlook for 2003
Despite the expansion challenges encountered in 2002, Agnico-Eagle set a gold
production record of 260,183 ounces at LaRonde in 2002. The Company expects to
overcome the last of the development difficulties encountered in 2002. First,
the installation of a spot cooling system and improved ventilation should ensure
improved development productivity on the lower mining levels, where cooling is
necessary. In addition, the completion of the Level 219 crushing plant in the
second quarter of 2003 will improve productivity and reduce congestion, allowing
access to more of the higher- grade gold ore on the lower mining levels. With
the mine operating in excess of 7,000 tons per day for a full year, gold
production is targeted to increase 44% to 375,000 ounces and cash operating
costs are targeted to decrease by 31% to $125 per ounce. Agnico-Eagle's cash
costs are heavily dependent on the US/Canadian dollar exchange rate and the
prices it receives for its byproduct silver, zinc and copper production. The
assumptions made for 2003 are a US dollar/Canadian exchange rate of C$1.53 per
US dollar, a silver price of $5.00 per ounce, a zinc price of $0.36 per pound
and a copper price of $0.75 per pound.
Fourth Quarter Conference Call and 2003 Reporting Dates
The Company is hosting a conference call to discuss 2002 results and to provide
an update on regional exploration and development activities on Thursday
February 20th, 2003 at 11:30 a.m. (EST). To participate in the conference call,
please dial (416) 640-4127. To access the rebroadcast, please dial
1-877-289-8525 and enter the reservation number 177341(pound key). The
conference call can also be accessed over the Internet through the Company's
website www.agnico-eagle.com.
For reference, please note below the dates and times for Agnico-Eagle's
quarterly results and conference calls for 2003:
News Release Schedule Conference Call Schedule
-------------------------------------------------
First quarter 2003 Weds. April 23 Thurs. April 24
(after market close) 11:00 a.m. (EST)
Second quarter 2003 Weds. July 30 Thurs. July 31
(after market close) 11:00 a.m. (EST)
Third quarter 2003 Weds. October 29 Thurs. October 30
(after market close) 11:00 a.m. (EST)
LaRonde Mine Tour
Analysts and investors are invited to attend a tour of the LaRonde minesite on
Thursday, May 22. The tour will focus on progress of underground development and
will include a tour of the infrastructure at depth. An exploration update will
also be provided on LaRonde and the Company's regional programs along its
15-mile position on the Cadillac-Bousquet Belt. Space is limited and will be
reserved on a first-come first-serve basis. Please register with Hazel
Winchester at 416-847-3717.
Forward Looking Statements
This news 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 is a long established Canadian gold producer with operations
located in northwestern Quebec and exploration and development activities in
eastern Canada and the southwestern United States. Agnico-Eagle's operating
history includes over three decades of continuous gold production, primarily
from underground mining operations. Agnico-Eagle's LaRonde Mine in Quebec is
Canada's largest gold deposit. The Company has full exposure to higher gold
prices consistent with its policy of no forward gold sales. It has paid a cash
dividend for 23 consecutive years.
Schedules Attached:
Mineral Reserve and Resource Data
Summarized Quarterly Data
Consolidated Financial Statements (excluding notes)
Agnico-Eagle Mineral Reserve & Mineral Resource Data
-------------------------------------------------------------------------
Au Ag Au Tons
Category and Zone (oz/t) (oz/t) Cu(%) Zn(%) (000's oz.) (000's)
-------------------------------------------------------------------------
Proven Mineral Reserve
-------------------------------------------------------------------------
LaRonde 0.08 2.85 0.39 4.95 624 7,972
-------------------------------------------------------------------------
Probable Mineral Reserve
-------------------------------------------------------------------------
LaRonde 0.10 1.84 0.37 2.93 3,398 33,720
-------------------------------------------------------------------------
Total Proven and Probable
Mineral Reserves 0.10 2.03 0.37 3.32 4,022 41,692
-------------------------------------------------------------------------
Indicated Mineral Resource
-------------------------------------------------------------------------
LaRonde 0.11 0.43 0.17 0.55 75 648
-------------------------------------------------------------------------
Goldex 0.073 997 13,658
-------------------------------------------------------------------------
Ellison 0.164 41 249
-------------------------------------------------------------------------
Total Indicated
Resource 0.076 1,113 14,555
-------------------------------------------------------------------------
Total Proven, Probable
& Indicated 0.091 5,135 56,247
-------------------------------------------------------------------------
Inferred Mineral Resource
-------------------------------------------------------------------------
LaRonde 0.17 0.38 0.33 0.08 3,978 23,030
-------------------------------------------------------------------------
Goldex 0.075 423 5,643
-------------------------------------------------------------------------
Lapa (80%) 0.249 653 2,616
-------------------------------------------------------------------------
Ellison 0.183 106 579
-------------------------------------------------------------------------
Total Inferred Resource 0.162 5,160 31,868
-------------------------------------------------------------------------
Long-term economic assumptions: gold, $300/oz.; silver $5.00/oz.; copper
$0.80/lb.; zinc $0.50/lb.; US$/C$, C$1.50.
(1) The Company's mineral reserve is calculated as at December 31, 2002.
More recent information on exploration, mining, processing,
metallurgy and other economic factors have been used in the mineral
reserve and mineral resource estimate. The mineral reserve is
estimated using an appropriate cut-off grade associated with an
average long-term gold price of $300 per ounce, silver price of
$5.00 per ounce, copper price of $0.80 per pound, zinc price of
$0.50 per pound and a US$/C$ exchange rate of C$1.50. The estimate
incorporates the current and/or expected mine plans and cost levels
and metal recoveries. The qualified person responsible for the
mineral reserve and resource estimate is Marc H. Legault, P.Eng.,
Manager, Project Evaluations of Agnico-Eagle.
(2) A mineral reserve is the economically mineable part of a measured
or indicated mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. A mineral reserve includes diluting
materials and allows for losses that may occur when the material is
mined. A proven mineral reserve is the economically mineable part of
a measured mineral resource for which quantity, grade or quality,
densities, shape, physical characteristics are so well established
that they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic viability
of the deposit. A probable mineral reserve is the economically
mineable part of an indicated mineral resource for which quantity,
grade or quality, densities, shape and physical characteristics, can
be estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of
the deposit.
(3) A mineral resource is a concentration or occurrence of natural,
solid, inorganic or fossilized organic material in or on the earth's
crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a
mineral resource are known, estimated or interpreted from specific
geological evidence and knowledge. An indicated mineral resource is
that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics, can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration and test information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes that are spaced closely enough for geological and
grade continuity to be reasonably assumed. An inferred mineral
resource is that part of a mineral resource for which quantity,
grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not
verified, geological and grade continuity. The estimate is based on
limited information and sampling gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings
and drill holes. Mineral resource that is not mineral reserve does
not have demonstrated economic viability.
(4) The 100% inferred mineral resource at Lapa, applying a cutting
factor of 1.5 oz./t., is 3,270,546 tons at 0.249 oz./t., containing
815,784 ounces of gold. The uncut calculation shows a variation of
13.8% for a total of 927,963 ounces of gold.
(5) A qualified person, Marc H. Legault, P.Eng., has verified the data
disclosed in this news release. The verification procedures, the
quality assurance program, quality control procedures and a
discussion of the factors that may materially effect reserve and
resource estimates may be found in the 2001 Ore Reserve Report,
Agnico-Eagle Mines Limited, LaRonde Division, dated February 25,
2001, filed on SEDAR.
Summarized Quarterly Data Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United
States dollars,
except where noted) Three months ended Year ended
December 31, December 31,
2002 2001 2002 2001
-------------------------------------------------------------------------
Consolidated Financial Data
Income and cash flow
Revenues from mining
operations $ 31,640 $ 26,470 $ 108,027 $ 96,043
Net income (loss) for
period $ 816 $ (748) $ 4,023 $ (5,401)
Net income (loss)
per share $ 0.01 $ (0.02) $ 0.06 $ (0.09)
Operating cash flow
(before non-cash
working capital) $ 5,416 $ 1,545 $ 20,364 $ 12,424
Operating cash flow
per share $ 0.07 $ 0.02 $ 0.28 $ 0.20
Weighted average
number of shares -
basic (in thousands) 76,676 67,619 70,821 61,334
Operating and
Financial Summary
LaRonde Division
Revenues from mining
operations $ 31,640 $ 26,470 $ 108,027 $ 96,043
Mine operating costs 23,293 19,885 75,969 67,009
-------------------------------------------------------------------------
Mine operating profit $ 8,347 $ 6,585 $ 32,058 $ 29,034
-------------------------------------------------------------------------
Tons of ore milled 537,895 480,931 1,963,129 1,805,248
Head grades:
Gold 0.14 0.16 0.14 0.15
Silver 2.32 2.16 2.35 2.32
Zinc 3.74% 5.02% 4.14% 5.19%
Copper 0.50% 0.24% 0.34% 0.21%
Recovery rates:
Gold 92.97% 93.30% 93.14% 92.59%
Silver 80.60% 79.10% 80.60% 79.50%
Zinc 78.00% 81.70% 78.40% 78.98%
Copper 80.30% 65.80% 71.40% 58.17%
Payable production:
Gold (ounces) 75,235 66,372 260,183 234,860
Silver (ounces in
thousands) 1,104 597 3,094 2,524
Zinc (pounds in
thousands) 26,610 33,605 108,060 126,275
Copper (pounds in
thousands) 3,984 1,415 8,927 4,096
Realized prices per
unit of production:
Gold (per ounce) $ 318 $ 279 $ 312 $ 273
Silver (per ounce) $ 4.51 $ 4.60 $ 4.61 $ 4.35
Zinc (per pound) $ 0.34 $ 0.35 $ 0.34 $ 0.40
Copper (per pound) $ 0.71 $ 0.59 $ 0.70 $ 0.64
Onsite operating costs
per ton milled
(Canadian dollars) $ 53 $ 49 $ 52 $ 52
-------------------------------------------------------------------------
Operating costs per
gold ounce produced:
Onsite operating costs
(including
reclamation
provision) $ 244 $ 228 $ 253 $ 257
Less: Non-cash
reclamation
provision (5) (5) (5) (5)
Net byproduct
revenues (111) (90) (107) (120)
-------------------------------------------------------------------------
Cash operating costs $ 128 $ 133 $ 141 $ 132
Accrued El Coco
royalties 70 48 41 23
-------------------------------------------------------------------------
Total cash costs $ 198 $ 181 $ 182 $ 155
Non-cash costs:
Reclamation
provision 5 5 5 5
Depreciation and
amortization 37 36 50 45
-------------------------------------------------------------------------
Total operating costs $ 240 $ 222 $ 237 $ 205
-------------------------------------------------------------------------
Consolidated Balance Sheets Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States
dollars, US GAAP basis) December 31, December 31,
2002 2001
-------------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 152,934 $ 21,180
Metals awaiting settlement 29,749 20,080
Income taxes recoverable 2,900 628
Inventories:
In-process 5,612 5,854
Supplies 5,008 3,903
Prepaid expenses and other 10,025 3,822
-------------------------------------------------------------------------
Total current assets 206,228 55,467
Fair values of derivative financial instruments 1,835 6,851
Investments and other assets 8,795 6,035
Future income and mining tax assets 23,890 23,890
Mining properties 353,059 301,221
-------------------------------------------------------------------------
$ 593,807 $ 393,464
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 15,246 $ 9,423
Dividends payable 3,013 1,853
Income and mining taxes payable 954 1,231
Interest payable 1,873 2,052
-------------------------------------------------------------------------
Total current liabilities 21,086 14,559
-------------------------------------------------------------------------
Long-term debt 143,750 151,081
-------------------------------------------------------------------------
Reclamation provision and other liabilities 5,766 4,055
-------------------------------------------------------------------------
Fair values of derivative financial instruments 5,346 7,026
-------------------------------------------------------------------------
Future income and mining tax liabilities 20,889 18,317
-------------------------------------------------------------------------
Shareholders' Equity
Common shares
Authorized - unlimited
Issued - 83,636,861 (2001 - 67,722,853) 591,969 407,347
Warrants 15,732 -
Contributed surplus 7,181 7,181
Deficit (195,706) (197,220)
Accumulated other comprehensive loss (22,206) (18,882)
-------------------------------------------------------------------------
Total shareholders' equity 396,970 198,426
-------------------------------------------------------------------------
$ 593,807 $ 393,464
-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
Consolidated Statements of Income (Loss) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months ended Year ended
dollars, except per share December 31, December 31,
amounts, US GAAP basis) 2002 2001 2002 2001
-------------------------------------------------------------------------
REVENUES
Revenues from mining
operations $ 31,640 $ 26,470 $ 108,027 $ 96,043
Interest and sundry income (830) 2,700 1,943 6,069
-------------------------------------------------------------------------
30,810 29,170 109,970 102,112
COSTS AND EXPENSES
Production 23,293 19,885 75,969 67,009
Exploration and corporate
development 1,042 1,808 3,766 6,391
Depreciation and amortization 2,756 2,902 12,998 12,658
General and administrative 1,667 1,520 5,530 4,461
Provincial capital tax (345) 195 829 1,551
Interest 1,855 3,186 7,341 12,917
-------------------------------------------------------------------------
Income (loss) before the
undernoted 542 (326) 3,537 (2,875)
Foreign currency gain 134 559 1,074 336
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Income (loss) before income
and mining taxes 676 233 4,611 (2,539)
Federal capital tax 221 46 949 590
Income and mining tax
expense (recoveries) (361) 935 (361) 2,272
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Net income (loss) for the
period $ 816 $ (748) $ 4,023 $ (5,401)
-------------------------------------------------------------------------
Net income (loss) per share
- basic and diluted $ 0.01 $ (0.02) $ 0.06 $ (0.09)
-------------------------------------------------------------------------
Weighted average number
of shares (in thousands)-
basic 76,676 67,618 70,821 61,333
diluted 77,487 68,093 71,631 61,807
-------------------------------------------------------------------------
Comprehensive income (loss):
Net Income (loss) for
the period $ 816 $ (748) $ 4,023 $ (5,401)
Other comprehensive income
(loss):
Unrealized gain on hedging
activities (960) - (5,512) -
Unrealized gain on
available for sale
securities 1,558 - 1,558 -
Dilution gain on issuance
of securities by
subsidiary company 1,610 - 1,610 -
Minimum pension liability (980) - (980) -
Cumulative transitional
adjustment upon the
adoption of FAS 133
related to the accounting
for derivative instruments
and hedging activities - - - (2,975)
-------------------------------------------------------------------------
Other comprehensive income
(loss) 1,228 - (3,324) (2,975)
-------------------------------------------------------------------------
Comprehensive income (loss)
for the period $ 2,044 $ (748) $ 699 $ (8,376)
-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
Consolidated Statements of Deficit Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months ended Year ended
dollars, except per share December 31, December 31,
amounts, US GAAP basis) 2002 2001 2002 2001
-------------------------------------------------------------------------
Deficit
Balance, beginning of period $(194,013) $(195,118) $(197,220) $(190,465)
Net income (loss) for the
period 816 (748) 4,023 (5,401)
Dividends declared (2,509) (1,354) (2,509) (1,354)
-------------------------------------------------------------------------
Balance, end of period $(195,706) $(197,220) $(195,706) $(197,220)
-------------------------------------------------------------------------
Accumulated other
comprehensive loss
Balance, beginning of period $ (23,434) $ (18,882) $ (18,882) $ (15,907)
Other comprehensive income
(loss) for the period 1,228 - (3,324) (2,975)
-------------------------------------------------------------------------
Balance, end of period $ (22,206) $ (18,882) $ (22,206) $ (18,882)
-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
Consolidated Statements of Cash Flows Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
Three months ended Year ended
(thousands of United States December 31, December 31,
dollars, US GAAP basis) 2002 2001 2002 2001
-------------------------------------------------------------------------
Operating activities
Net income (loss) for the
period $ 816 $ (748) $ 4,023 $ (5,401)
Add (deduct) items not
affecting cash from
operating activities:
Depreciation and amortization 2,756 2,902 12,998 12,658
Provision for (recoveries of)
future income and mining taxes 642 1,122 1,183 3,150
Unrealized (gain) loss on
derivative contracts (336) (2,626) (1,680) (4,249)
Amortization of deferred
costs and other 1,538 895 3,840 6,266
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5,416 1,545 20,364 12,424
Change in non-cash working
capital balances (9,415) (2,139) (7,252) (16,603)
-------------------------------------------------------------------------
Cash flows from (used in)
operating activities (3,999) (594) 13,112 (4,179)
-------------------------------------------------------------------------
Investing activities
Additions to mining properties (13,896) (9,802) (64,836) (36,278)
Increase in investments
and other (965) (60) (1,773) (278)
-------------------------------------------------------------------------
Cash flows used in investing
activities (14,861) (9,862) (66,609) (36,556)
-------------------------------------------------------------------------
Financing activities
Dividends paid - - (1,344) (1,114)
Common shares issued 177,718 2,892 193,784 87,416
Warrants issued 15,732 - 15,732 -
Share/warrant issue costs (9,162) - (9,162) (5,209)
Proceeds from long-term debt - - 143,750 -
Financing costs - - (5,266) -
Repayment of the Company's
senior convertible notes - - (122,169) -
Bank debt (30,000) (45,000) (30,000) (37,500)
Resale of the Company's own
shares held by a subsidiary
company and other - (2,505) - 4,974
-------------------------------------------------------------------------
Cash flows from (used in)
financing activities 154,288 (44,613) 185,325 48,567
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents (193) (164) (74) (558)
Net increase (decrease) in
cash and cash equivalents 135,235 (55,233) 131,754 7,274
Cash and cash equivalents,
beginning of period 17,699 76,413 21,180 13,906
-------------------------------------------------------------------------
Cash and cash equivalents,
end of period $ 152,934 $ 21,180 $ 152,934 $ 21,180
-------------------------------------------------------------------------
Other operating cash
flow information:
Interest paid during the
period $ 640 $ 1,269 $ 23,590 $ 10,205
-------------------------------------------------------------------------
Taxes paid (recovered)
during the period $ (1,320) $ 947 $ (1,982) $ (569)
-------------------------------------------------------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/cgi-bin/inquiry.cgi?OKEY=8887
CONTACT: For further information: Sean Boyd, President and CEO, Agnico-Eagle
Mines Limited, (416) 947-1212
News release via Canada NewsWire, Toronto 416-863-9350
Copyright (C) 2003 CNW, All rights reserved
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