(All amounts expressed in U.S. dollars unless otherwise noted)
Stock Symbols: AEM (NYSE)
AGE (TSX)
TORONTO, April 28 /PRNewswire-FirstCall/ - Agnico-Eagle Mines Limited
today announced a significant improvement in financial and operating results
as it reported first quarter earnings of $12.9 million, or $0.15 per share
compared to a net loss of $6.2 million, or $0.07 per share, in the first
quarter of 2003. Operating cash flow in the quarter was $20.8 million, or
$0.25 per share compared to a deficiency of $0.6 million, or $0.01 per share,
in the prior year's first quarter.
Highlights for the quarter include:
- Record quarterly earnings of $12.9 million as LaRonde hits stride with
record ore production and Company realizes full benefit of an 18%
increase in realized gold prices.
- Record low total cash costs of $78 per ounce of gold produced,
68% improvement over prior year's first quarter, on 28% increase in
gold production to 70,188 ounces and higher byproduct metal prices and
production.
- Underground program commenced at Goldex as Company continues to
advance its regional growth strategy at Lapa and LaRonde II.
- Strategic stake planned in Riddarhyttan Resources AB after quarter end
will expose Agnico-Eagle to promising Abitibi-style gold camp in
politically-safe and mining-friendly Finland.
"Our shareholders' patience has been rewarded as Agnico-Eagle began, in
the first quarter, to realize the benefits of the nearly decade-long expansion
program at LaRonde," said Sean Boyd, President and Chief Executive Officer.
"Our growth strategy is now to leverage this valuable experience by applying
our mine-finding and mine-building experience to our regional projects and new
investment in Finland," added Mr. Boyd.
Conference Call Tomorrow
The Company will host a conference call on Thursday, April 29, 2004 at
11:00 a.m. (EST.). All those interested are invited to attend in person, by
telephone or by webcast. To participate in the conference call, please dial
(416) 640-4127. To ensure your participation, please call approximately five
minutes prior to the scheduled start of the call. A live audio webcast of the
call will be available on the Company's website at www.agnico-eagle.com. The
replay phone number will be 1-877-289-8525, passcode 21031481 followed by the
number sign.
LaRonde Achieves Record Underground and Mill Performance
Record quarterly tonnage of over 742,000 tons of ore, or 8,154 tons per
day, was hoisted from the underground operations at LaRonde in the first
quarter. Performance improved steadily during the quarter as peak average
levels were achieved in March when ore production from underground was
8,735 tons per day. Similarly, mill throughput also established a new record
as over 689,000 tons of ore was processed averaging 7,574 tons per day and
reaching peak average levels in March of 8,123 tons per day. As a result of
the high underground ore production, the surface ore stockpile reached 64,000
tons by quarter end while onsite unit operating costs improved by 8% to
C$48 per ton, when compared to the first quarter of 2003.
Production of all metals in the first quarter improved when compared to
the prior year's first quarter with gold production up 28% to 70,188 ounces
while byproduct copper, zinc and silver production increased by 48%, 31% and
9%, respectively. As a result of the improvement in metals production,
improved prices for all byproduct metals and the elimination of production
royalties, total cash operating costs improved by 68% to $78 per ounce of gold
produced in the first quarter of 2004 as compared to the first quarter of
2003.
Please refer to the Summary Management Discussion and Analysis later in
this press release for a discussion of the financial results.
As previously disclosed, LaRonde experienced two fatalities the first
quarter. Agnico-Eagle deeply regrets the loss of an employee and a contractor
in two separate incidents. LaRonde remains one of the safest mines in Quebec
with a combined accident frequency index in the first quarter of 5.35 compared
to the provincial mining industry average of 9.00. Nevertheless, the Company
and all its employees continue with a focused effort to improve workplace
safety.
Deep Drilling at LaRonde Continues to Indicate Higher Grade Core
Seven drills were in operation during the first quarter located in the
following target areas:
- Three drills on the LaRonde II exploration program below Level 215.
- Two drills on definition/delineation drilling on the Level 215 mining
horizon.
- One drill on the Level 194 mining horizon.
- One drill on the Level 152 mining horizon.
A total of 41,559 feet of diamond drilling was completed during the
quarter.
On deep exploration, three drills tested Zone 20 North below the bottom
of the Penna Shaft with the most recent results highlighted as follows:
TRUE Gold(oz/ton)
Drill Thick- Cut Silver Copper Zinc
Hole ness (ft) From To (1.5 oz)(oz/ton) (%) (%)
-------------------------------------------------------------------------
3215-77(x) 9.2 2,478.3 2,492.4 0.06 0.03 0.01 0.01
-------------------------------------------------------------------------
3215-78 64.6 2,280.8 2,368.1 0.13 0.11 0.22 0.01
-------------------------------------------------------------------------
3215-79 12.1 1,788.0 1801.5 0.08 0.06 0.06 0.05
-------------------------------------------------------------------------
3215-72A 85.0 2,903.5 3,010.8 0.21 0.17 0.23 0.02
-------------------------------------------------------------------------
3215-83(x) 40.0 3,357.9 3,406.5 0.17 0.18 0.15 0.01
-------------------------------------------------------------------------
3215-84(x) 52.5 2,431.8 2,501.6 0.18 0.44 0.25 0.01
-------------------------------------------------------------------------
(x)preliminary results
The best result was obtained in 3215-72A which continued to confirm the
presence of a higher grade core. This is significant because a higher grade
core could significantly improve the economics of any deep mining scenario
envisaged for LaRonde II. The Level 215 exploration drift advanced a further
575 feet in the first quarter. The heading is currently 950 feet to the east
of the LaRonde-Bousquet property boundary and should cross the boundary in the
second quarter.
Regional Project Update
At Bousquet/Ellison, located immediately to the west of LaRonde, drill
hole D04-2777 encountered two 10 foot mineralized horizons corresponding to
the Bousquet and LaRonde's Zone 20 North horizons. No significant gold values
were encountered but the drill hole encountered a broad biotized alteration
zone approximately 200 feet thick containing 5% to 30% pink garnets.
Historically, intense garnet biotite alteration has been indicative of massive
sulfide mineralization in the immediate vicinity. A drill hole survey was
completed and indicated that the drill hole had deviated approximately
600 feet further west than originally planned and 1,300 feet above previously
disclosed LaRonde drill hole 3215-68A, which had encountered 0.19 ounces of
gold per ton over 45.9 feet and included 2.21 ounces per ton silver, 0.61%
copper and 1.87% zinc. A second drill hole is presently in progress from
LaRonde's Level 215 exploration drift and is targeted approximately 600 feet
to the west of 3215-68A but at the same depth.
At Goldex, located 35 miles east of LaRonde, dewatering of the
underground workings commenced in preparation for a bulk sample. At the end of
the quarter, the water was down to a depth of 1,085 feet. The shaft bottom is
at a depth of 2,610 feet. Shaft rehabilitation was completed to a depth of
750 feet. A bulk sample from three vertical slot raises plus additional
diamond drilling will be completed over the course of 2004. The bulk sample is
expected to be processed in the first quarter of 2005. The Goldex deposit has
probable gold reserves of 1.6 million ounces.
At Lapa, located 7 miles east of LaRonde, drilling continued with respect
to defining the limits of the Contact Zone deposit using five surface drills.
The most recent drilling results have defined the economic western limit down
to a depth of 3,600 feet. The deposit remains otherwise open for expansion.
Drill hole 118-04-52B was recently completed 600 feet east of Lapa's reserve
envelope returning (based on preliminary assays) 0.20 ounces of gold per ton
over a true width of 9.8 feet, indicating a possible eastern extension. A
second machine is testing the Contact Zone at a depth of 3,000 feet also along
the eastern margin of the deposit. Two machines are currently testing the
deposit at depths of 3,600 feet and 4,000 feet, respectively. It is expected
that the deepest drill holes on the Contact Zone should reach the target area
in the second quarter. The fifth machine is currently testing the eastern
portion of the property at a depth of 3,000 feet below surface.
A contract was awarded to the Redpath Group in the quarter to evaluate
three underground development options that could allow an exploration phase
and which could be converted to preproduction if drilling and development
results were positive. Tenders for engineering and development are in the
process of preparation with bids expected in the second quarter. Lapa has
probable gold reserves of 1.2 million ounces.
Strategic Investment in New Abitibi-Style Camp in Finland
As previously announced, Agnico-Eagle agreed to purchase, for
approximately $10.8 million, a 14.1% stake (including shares already owned) in
Riddarhyttan Resources AB (Riddarhyttan) from its largest shareholder, a
transaction expected to close in the middle of May. Riddarhyttan is the 100%
owner of the Suurikuusikko gold deposit, located approximately 550 miles north
of Helsinki near the town of Kittila in Finnish Lapland. Riddarhyttan's
property position in the Suurikuusikko area consists of 22 contiguous claims
(approximately 4,261 acres) with similar Precambrian greenstone belt geology
and topography to Agnico-Eagle's land package in the Abitibi region of Quebec.
In late 2002, Riddarhyttan reported an indicated mineral resource at
Suurikuusikko, made up of several zones that occur over a 2.5 mile structure,
of 1.29 million ounces of gold, consisting of 7.2 million tons grading
0.18 ounces of gold per ton. An additional 0.72 million ounces of inferred
gold resource also exists, consisting of 5.5 million tons grading 0.13 ounces
of gold per ton. Since then, Riddarhyttan has conducted extensive diamond
drilling within the Suurikuusikko deposit (58 holes for approximately
45,400 feet). The aim of this program was to test the deeper portions of the
deposit (at depths up to 1,640 feet) and also transfer inferred resources into
indicated resources in a sector interpreted to be potentially mineable by open
pit. The results of the program reportedly confirm the continuity, grades and
thickness of the gold mineralization both on strike and at depth and will
likely lead to an enhancement of the mineral resource.
About the Suurikuusikko Gold Resource
The mineral resource estimate reported herein for Suurikuusikko was
prepared for Riddarhyttan in accordance with the Australasian Code for
Reporting Mineral Resources and Ore Reserves, September 1999 (JORC Code).
Mineral resources that have been disclosed herein were estimated using a
minimum gold grade cut-off of approximately 0.064 ounces of gold per ton. For
further details please refer to the press release dated December 12th, 2002
and titled "Riddarhyttan Resources AB: New resource estimate shows more than
2 million ounces gold in the Suurikuusikko deposit in Finland" that is
available on their website www.riddarhyttan.se. Mineral resource estimates
prepared under reporting codes other than National Instrument 43-101
("NI 43-101") should not be relied upon as they may not conform to NI 43-101
standards and definitions. However, reserve and resource categories in the
JORC Code are substantially similar to the corresponding categories of mineral
reserves and resources required under NI 43-101. To the best of Agnico's
knowledge, the Riddarhyttan estimate is relevant and reliable.
Join Us for Our Annual Meeting
Please join us for our 2004 Annual and Special Meeting of Common
Shareholders on Friday, May 28, 2004 at 10:30 a.m. (EST.). The meeting will be
held at the Toronto Hilton Hotel, Toronto I Room, 145 Richmond Street West,
Toronto, Canada. In addition to discussing our operating performance, we will
provide a comprehensive presentation concerning our development and
exploration projects during the meeting. For those unable to attend in person,
the meeting will be webcast on the Company's website www.agnico-eagle.com.
Where to Find Maps
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:
LaRonde Bousquet Longitudional 20 North:
Click here for LaRonde
Lapa Drilling Program:
Click here for Lapa Drilling
Abitibi Regional Property Plan:
Click here for Abitibi Regional Property Plan
Scientific and Technical Data
A qualified person, Guy Gosselin, P.Eng., P.Geo., LaRonde Division's
Chief Geologist, has verified the LaRonde and Bousquet/Ellison exploration
information disclosed in this news release. The verification procedures, the
quality assurance program and quality control procedures used in preparing
such data may be found in the 2004 Mineral Resource and Mineral Reserve
Report, Agnico-Eagle Mines Limited, LaRonde Division, dated March 26, 2004,
filed on SEDAR.
All Lapa drill core has been logged and the results have been verified by
Dino Lombardi, P.Geo., Senior Geologist for the Company's Exploration Division
and who is fully qualified per the standards outlined in National Instrument
43-101. The drill core selected for analysis is sawed in half with one half
sent to a commercial laboratory and the other half retained for future
reference. Upon reception of the assay results, the pulps and rejects are
recovered and submitted to a second laboratory for check-assay purposes. The
gold assaying method uses a 30-gram sample by Fire Assays or Metallic Sieve
finish as requested by the project geologist. The laboratories used are
Bourlamaque Assay Laboratories Ltd., Val d'Or, Quebec, and Expert Laboratories
Inc., Rouyn-Noranda, Quebec. Results that have been reported as 'preliminary'
do not have complete check-assay data available; the final results, that will
include check-assays, are not expected to vary significantly from the
preliminary results
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).
About Agnico-Eagle
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 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 24 consecutive years.
QUARTERLY SUMMARY MANAGEMENT DISCUSSION AND ANALYSIS
UNITED STATES GAAP
(all figures are expressed in US dollars unless otherwise noted)
Results of Operations
Agnico-Eagle reported first quarter net income of $12.9 million, or $0.15
cents per share, compared to a net loss of $6.2 million, or $0.07 cents per
share, in the first quarter of 2003. Gold production in the first quarter of
2004 was 70,188 ounces compared to 55,005 ounces in the first quarter of 2003.
The increased production was a result of operational improvements over the
first quarter of 2003 and the implementation of a more focused mining plan.
The table below summarizes the key variances in net income for the first
quarter of 2004 from the net loss reported for the same period in 2003.
(millions of dollars) First Quarter
-----------------------------------------------------
Increase in gold production $ 5.3
Elimination of El Coco royalty 4.1
Increase in gold price 4.0
Increase in net copper revenue 4.0
Increase in net zinc revenue 2.9
Increase in net silver revenue 2.7
Stronger Canadian dollar, net of hedges (2.5)
Cost of increased ore throughput (1.4)
-----
Net positive variance $ 19.1
-----
-----
As shown in the table above, revenues from all metals benefited from
increased production and increased metal prices. Net copper and zinc revenues
benefited from increased production and metal prices but these benefits were
partially offset by increased smelting and refining charges attributable to
the increase in production of these metals. In all, revenues from mining
operations increased by 61% to $48.6 million in the first quarter of 2004 as
compared to the prior year's first quarter. Net income was also positively
affected by the elimination of the El Coco royalty as that area of the mine is
essentially mined out.
In the first quarter of 2004 total cash operating costs per ounce
decreased significantly to $78 per ounce of gold produced from $243 per ounce
in the first quarter of 2003. The main drivers leading to the decrease in
total cash operating costs were higher gold production, higher net byproduct
revenue resulting from increased production and higher byproduct metal prices,
and the elimination of the El Coco royalty. Operating costs per ton decreased
to C$48 in the first quarter of 2004 compared to C$52 in the first quarter of
2003 due mainly to the mill achieving record quarterly tonnage of 689,202 tons
in the first quarter of 2004.
The following table provides a reconciliation of the total cash operating
costs per ounce of gold produced to the financial statements:
(thousands of dollars, except where noted) Q1 2004 Q1 2003
-------------------------------------------------------------------------
Cost of production per Consolidated Statements
of Income (Loss) $ 24,141 $ 24,347
Adjustments:
Byproduct revenues (18,210) (11,379)
El-Coco royalty - (4,075)
Inventory adjustment (i) (294) 508
Non cash reclamation provision (131) (105)
-------- --------
Cash operating costs $ 5,506 $ 9,296
Gold production (ounces) 70,188 55,005
-------- --------
Cash operating cost (per ounce) $ 78 $ 169
El Coco royalty (per ounce) - 74
-------- --------
Total cash operating costs (per ounce)(ii) $ 78 $ 243
-------- --------
-------- --------
Notes:
(i) Under the Company's revenue recognition policy, revenue is
recognized on concentrates when legal title passes. Since total cash
operating costs are calculated on a production basis, this
adjustment reflects the portion of concentrate production for which
revenue has not been recognized in the period.
(ii) Total cash operating cost data is not a recognized measure under
US GAAP. Management uses this generally accepted industry measure in
evaluating operating performance and believes it to be a realistic
indication of such performance. The data also indicates the
Company's ability to generate cash flow and operating earnings at
various gold prices. This additional information should be
considered together with other data prepared in accordance with
US GAAP.
As previously disclosed, Agnico-Eagle expects to produce 300,000 ounces
of gold in 2004. However, given sharply higher than expected byproduct metal
prices, the Company expects total cash operating costs per ounce to be
substantially lower than the previous guidance provided of $155 to $165. This
estimate was based on byproduct price assumptions of $5.00 per ounce silver,
$0.40 per pound zinc, $0.85 per pound copper and a C$/US$ exchange rate of
$1.30. The projected sensitivity of the full year total cash operating cost
estimate to changes in metal prices and exchange rates follows:
-------------------------------------------------------------------------
Change in variable Impact on total cash operating costs ($/oz.)
-------------------------------------------------------------------------
$0.10 in C$/US$ 25
$0.50/oz. in silver 10
$0.05/lb. in zinc 16
$0.10/lb. in copper 7
-------------------------------------------------------------------------
In the first quarter of 2004, we accrued income taxes at an income tax
rate of 8.2%. This rate was reduced from the statutory rate of approximately
38% due to the utilization of previously unrecognized tax assets. The Company
expects to utilize all its previously unrecognized tax assets in 2004. As a
result, the Company expects to accrue a total tax provision of approximately
25% for the entire year. The Company does not expect to pay cash income and
mining taxes in 2004 however accrues deferred income and mining taxes to
reflect the drawdown of tax pools.
Liquidity and Capital Resources
At March 31 2004, Agnico-Eagle's consolidated cash and cash equivalents
were $106 million while working capital was $153 million. At December 31,
2003, the Company had $110 million in cash and cash equivalents and
$141 million in working capital. The Company currently has $100 million in
undrawn credit lines and expects to have an additional $25 million available
in the fourth quarter of 2004 once certain completion tests are satisfied in
connection with the LaRonde expansion to 7,000 tons per day.
Cash flow from operating activities, before working capital changes, was
$20.8 million in the first quarter of 2004 compared to a deficiency of
$0.6 million in the first quarter of 2003. Operating cash flow was positively
impacted by higher gold production and increased gold and byproduct metal
prices partially offset by a stronger Canadian dollar. This positive operating
cash flow was partially offset by a buildup in metal settlements receivable
and ore inventories. The buildup in metal settlements receivable is expected
to gradually reverse over the course of 2004.
For the three months ended March 31, 2004, capital expenditures were
$10.2 million compared to $10.8 million in the first quarter of 2003. Capital
expenditures at the LaRonde mine decreased to $7.5 million from $10.5 million
in the first quarter of 2003. The capital expenditures in the first quarter of
2004 represent sustaining capital and the final construction costs for Phase I
of LaRonde's water treatment facility and bulk air cooling plant. The
remainder of the capital expenditures in the first quarter of 2004 represents
continued expenditures for the Company's regional projects, namely Lapa,
Goldex and LaRonde II, all of which have met the requirement for
capitalization under US GAAP.
Summarized Quarterly Data (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
except where noted, US GAAP basis) 2004 2003
-------------------------------------------------------------------------
Consolidated Financial Data
Income and cash flow
LaRonde Division
Revenues from mining operations $ 48,604 $ 30,112
Mine operating costs 24,141 24,347
-------------------------------------------------------------------------
Mine operating profit $ 24,463 $ 5,765
-------------------------------------------------------------------------
-------------------------
Net income (loss) for period $ 12,909 $ (6,237)
Net income (loss) per share $ 0.15 $ (0.07)
Operating cash flow (before non-cash
working capital) $ 20,822 $ (577)
Weighted average number of shares
- basic (in thousands) 84,525 83,725
Tons of ore milled 689,202 602,633
Head grades:
Gold (oz. per ton) 0.11 0.10
Silver (oz. per ton) 2.30 2.44
Zinc 3.90% 3.55%
Copper 0.55% 0.45%
Recovery rates:
Gold 92.19% 91.66%
Silver 84.93% 83.80%
Zinc 81.81% 78.20%
Copper 79.94% 79.10%
Payable production:
Gold (ounces) 70,188 55,005
Silver (ounces in thousands) 1,128 1,036
Zinc (pounds in thousands) 36,647 27,964
Copper (pounds in thousands) 5,840 3,956
Realized prices per unit of production:
Gold (per ounce) $ 412 $ 350
Silver (per ounce) $ 6.72 $ 4.70
Zinc (per pound) $ 0.47 $ 0.35
Copper (per pound) $ 1.25 $ 0.76
Onsite operating costs per ton milled
(Canadian dollars) $ 48 $ 52
-------------------------------------------------------------------------
-------------------------
Operating costs per gold ounce produced:
Onsite operating costs (including asset
retirement expenses) $ 358 $ 419
Less: Non-cash asset retirement expenses (2) (2)
Foreign exchange and byproduct
metals hedge gains (14) (41)
Net byproduct revenues (264) (207)
-------------------------------------------------------------------------
Cash operating costs $ 78 $ 169
Accrued El Coco royalties - 74
-------------------------------------------------------------------------
Total cash costs $ 78 $ 243
Non-cash costs:
Reclamation provision 2 2
Amortization 80 82
-------------------------------------------------------------------------
Total operating costs $ 160 $ 327
-------------------------------------------------------------------------
-------------------------
Consolidated Balance Sheets Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars,
US GAAP basis) March 31, December 31,
2004 2003
-------------------------------------------------------------------------
(Unaudited)
-------------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ 106,187 $ 110,365
Metals awaiting settlement 42,417 34,570
Income taxes recoverable 8,655 7,539
Inventories:
Ore stockpiles 8,449 6,557
In-process concentrates 1,052 1,346
Supplies 6,349 6,276
Prepaid expenses and other 7,785 10,363
-------------------------------------------------------------------------
Total current assets 180,894 177,016
Fair value of derivative financial instruments 6,472 7,573
Investments and other assets 10,792 11,214
Future income and mining tax assets 42,208 41,579
Mining properties 404,330 399,719
-------------------------------------------------------------------------
$ 644,696 $ 637,101
-------------------------------------------------------------------------
-------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 26,609 $ 29,915
Dividends payable 750 3,327
Interest payable 798 3,161
-------------------------------------------------------------------------
Total current liabilities 28,157 36,403
-------------------------------------------------------------------------
Long-term debt 143,750 143,750
-------------------------------------------------------------------------
Asset retirement obligation and other liabilities 15,651 15,377
-------------------------------------------------------------------------
Future income and mining tax liabilities 43,434 40,848
-------------------------------------------------------------------------
Shareholders' Equity
Common shares
Authorized - unlimited
Issued - 84,596,533 (2003 - 84,469,804) 602,717 601,305
Warrants 15,732 15,732
Contributed surplus 7,181 7,181
Stock-based compensation 209 -
Deficit (205,146) (218,055)
Accumulated other comprehensive loss (6,989) (5,440)
-------------------------------------------------------------------------
Total shareholders' equity 413,704 400,723
-------------------------------------------------------------------------
$ 644,696 $ 637,101
-------------------------------------------------------------------------
-------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
Consolidated Statements of Income (Loss)
and Comprehensive Income (Loss) (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
except per share amounts, US GAAP basis) 2004 2003
-------------------------------------------------------------------------
REVENUES
Revenues from mining operations $ 48,604 $ 30,112
Interest and sundry income 205 641
-------------------------------------------------------------------------
48,809 30,753
COSTS AND EXPENSES
Production 24,141 24,347
Exploration and corporate development 290 1,472
Equity loss in junior exploration company 289 -
Amortization 5,582 4,517
General and administrative 1,799 1,467
Provincial capital tax 455 489
Interest 1,757 2,217
Foreign currency loss (gain) 139 (217)
-------------------------------------------------------------------------
Income (loss) before income, mining
and federal capital taxes 14,357 (3,539)
Federal capital tax 266 325
Income and mining tax expense 1,182 630
-------------------------------------------------------------------------
Income (loss) before cumulative
catch-up adjustment 12,909 (4,494)
Cumulative catch-up adjustment relating
to asset retirement obligations - (1,743)
-------------------------------------------------------------------------
Net income (loss) for the period $ 12,909 $ (6,237)
-------------------------------------------------------------------------
-------------------------
Net income (loss) before cumulative
catch-up adjustment per share
- basic and diluted $ 0.15 $ (0.05)
Cumulative catch-up adjustment per share
- basic and diluted - (0.02)
-------------------------------------------------------------------------
Net income (loss) per share - basic and diluted $ 0.15 $ (0.07)
-------------------------------------------------------------------------
-------------------------
Weighted average number of shares (in thousands)
basic 84,525 83,725
diluted 85,051 83,725
-------------------------------------------------------------------------
-------------------------
Comprehensive income (loss):
Net income (loss) for the period $ 12,909 $ (6,237)
Other comprehensive income (loss):
Unrealized gain on hedging activities 185 3,227
Unrealized gain (loss) on available
for sale securities (442) 135
Adjustments for derivative instruments
maturing during the period (784) -
Adjustments for realized gains on
available-for-sale securities due
to dispositions in the period (508) -
-------------------------------------------------------------------------
Other comprehensive income (loss) (1,549) 3,362
-------------------------------------------------------------------------
Comprehensive income (loss) for the period $ 11,360 $ (2,875)
-------------------------------------------------------------------------
-------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
Consolidated Statements of Deficit and
Accumulated Other Comprehensive Loss
(unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
US GAAP basis) 2004 2003
-------------------------------------------------------------------------
Deficit
Balance, beginning of period $ (218,055) $ (196,023)
Net income (loss) for the period 12,909 (6,237)
-------------------------------------------------------------------------
Balance, end of period $ (205,146) $ (202,260)
-------------------------------------------------------------------------
-------------------------
Accumulated other comprehensive loss
Balance, beginning of period $ (5,440) $ (21,166)
Other comprehensive income (loss) for the period (1,549) 3,362
-------------------------------------------------------------------------
Balance, end of period $ (6,989) $ (17,804)
-------------------------------------------------------------------------
-------------------------
Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
Consolidated Statements of Cash Flows
(Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
US GAAP basis) 2004 2003
-------------------------------------------------------------------------
Operating activities
Net income (loss) for the period $ 12,909 $ (6,237)
Add (deduct) items not affecting cash
from operating activities:
Amortization 5,582 4,517
Provision for future income and
mining taxes 1,957 1,326
Unrealized (gain) loss on derivative
contracts 216 (2,270)
Cumulative catch-up adjustment related
to asset retirement obligations - 1,743
Amortization of deferred costs and other 158 344
-------------------------------------------------------------------------
Cash flow from (used in) operations,
before working capital changes 20,822 (577)
Change in non-cash working capital balances
Metals awaiting settlement (7,847) 4,119
Income taxes recoverable (1,116) (395)
Inventories (1,671) (823)
Prepaid expenses and other 1,700 571
Accounts payable and accrued liabilities (3,306) (670)
Interest payable (2,363) (1,613)
-------------------------------------------------------------------------
Cash flows from operating activities 6,219 612
-------------------------------------------------------------------------
Investing activities
Additions to mining properties (10,223) (10,837)
Increase in investments and other 842 (188)
-------------------------------------------------------------------------
Cash flows used in investing activities (9,381) (11,025)
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Financing activities
Dividends paid (2,480) (2,431)
Common shares issued 1,412 1,195
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Cash flows used in financing activities (1,068) (1,236)
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Effect of exchange rate changes on cash
and cash equivalents 52 (47)
Net decrease in cash and cash equivalents (4,178) (11,696)
Cash and cash equivalents, beginning of period 110,365 152,934
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Cash and cash equivalents, end of period $ 106,187 $ 141,238
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Other operating cash flow information:
Interest paid during the period $ 3,113 $ 3,602
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Capital taxes paid during the period $ 1,161 $ -
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Note: Certain items have been reclassified from financial statements
previously presented to conform to the current presentation.
SOURCE Agnico-Eagle Mines Limited
CONTACT:
Barry Landen, V.P. Corporate Affairs, Agnico-Eagle Mines
Limited
(416) 947-1212
(AGE. AEM)
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