Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in
Included in the fourth quarter of 2019 net income, and not adjusted above, is a non-cash stock option expense of
For the full year 2019, the Company reported net income of
In the fourth quarter of 2019, cash provided by operating activities was
For the full year 2019, cash provided by operating activities was a record
The increase in net income and cash provided by operating activities during the fourth quarter of 2019 and for the full year 2019, compared to the prior year periods, was mainly due to higher gold sales volumes and higher realized gold prices, partially offset by higher costs relating to the slower than expected ramp up at the Amaruq satellite deposit and the Meliadine mine. Higher gold sales volumes were largely a result of the increased production due to the completion of the Meliadine project in 2019.
"With two new mines coming into production in
__________________ |
1 Adjusted net income is a non-GAAP measure. For a discussion regarding the Company's use of non-GAAP measures, please see "Note Regarding Certain Measures of Performance". |
Fourth quarter of 2019 and full year 2019 highlights include:
- Record quarterly and annual gold production – Payable gold production2 in the fourth quarter of 2019 was 494,678 ounces (including pre-commercial production ounces of 3,137 (50% basis) at Canadian Malartic from the Barnat deposit) at production costs per ounce of
$763 , total cash costs per ounce3 of$745 and all-in sustaining costs per ounce4 ("AISC") of$1,039 . Payable gold production for the full year 2019 was 1,782,147 ounces (including pre-commercial production ounces of 47,281 at Meliadine, 35,281 at Amaruq and 3,137 at Canadian Malartic from the Barnat deposit), at production costs per ounce of$735 and total cash costs per ounce of$673 , compared to the most recent guidance of 1.77 to 1.78 million ounces of gold at total cash costs per ounce of$620 to$670 . AISC for the full year 2019 were$938 , compared to the most recent guidance of$875 to$925 per ounce - Gold production is forecast to increase by 18% from 2019 to 2022 – The gold production forecast for 2020 is now 1.875 million ounces, compared to the most recent guidance of 1.9 to 2.0 million ounces. The gold production guidance for 2020 was reduced largely due to revisions to the mine plans at the
Nunavut operations and LaRonde. The mid-point of gold production guidance for 2021 is essentially unchanged at 2.05 million ounces and the mid-point of gold production guidance for 2022 is 2.10 million ounces - Unit costs expected to decline from 2020 to 2022 – In 2020, total cash costs per ounce are forecast to be between
$725 and$775 and AISC are forecast to be between$975 and$1,025 per ounce. Costs in 2020 are forecast to increase over 2019 largely due to the ongoing ramp up of theNunavut operations and a more conservative mining plan at LaRonde. The Company expects production to increase and costs to be reduced after the first quarter of the year as plans are in place to resolve the key outstanding ramp up issues inNunavut and LaRonde infrastructure upgrades are completed. Total cash costs per ounce and AISC are expected to continue to decline from 2020 through 2022 - 2019 gold mineral reserves declined slightly while gold grades increased 5%; measured and indicated mineral resources increased by 4% and inferred mineral resources increased by 19% – The increase in inferred mineral resources was largely due to additions at East Gouldie and
East Malartic . The average gold mineral reserve grade in 2019 increased from 2.7 grams per tonne ("g/t") to 2.83 g/t, which is the fourth consecutive year of improvement. Average mineral resource grades for the year-ended 2019 were essentially unchanged from the previous year - Dividend increased by 14% – A quarterly dividend of
$0.20 per share has been declared. The previous quarterly dividend was$0.175 per share - Project pipeline shows potential to support future production growth
- Meliadine Phase 2 expansion approved – The current Meliadine mill has shown that it can operate well in excess of its nameplate 3,750 tonnes per day ("tpd") capacity. As a result, the Company has decided to accelerate the Phase 2 expansion to utilize this extra mill capacity. The initial source of open pit ore will be from two pits developed on the Tiriganiaq deposit, which contain probable mineral reserves of 590,412 ounces of gold (3.8 million tonnes grading 4.89 g/t gold). Approximately 16,500 pre-commercial gold ounces are expected to be produced from Tiriganiaq pits in 2020
- Amaruq underground project continues to advance – Amaruq mineral reserves increased 15% year-over-year to 3.3 million ounces of gold (26 million tonnes grading 3.96 g/t gold), with the addition of initial underground probable mineral reserves in the Whale Tail deposit of 577,000 ounces of gold (3.3 million tonnes grading 5.43 g/t gold). The Company believes that there is good potential for the Amaruq underground to contribute to its production profile starting in 2022
- Underground mineral resources expanded at Canadian Malartic – An initial inferred mineral resource of 1.4 million ounces of gold (12.8 million tonnes grading 3.34 g/t gold) (50% basis), has been declared at the
East Gouldie Zone , which was discovered in late 2018. Drilling highlights from 2019 include 8.6 g/t gold over 25.8 metres at 1,071 metres depth. AtEast Malartic , inferred mineral resources of 1.2 million ounces of gold (50% basis) were added with the inclusion of deeper portions of the deposit between 1,000 metres to 1,800 metres depth, increasing total inferred mineral resources atEast Malartic to 2.6 million ounces of gold (39.4 million tonnes grading 2.05 g/t gold) (50%) - Drilling at
Santa Gertrudis extends high-grade mineral resources – The Amelia deposit continues to grow with an updated inferred mineral resource of 70,000 ounces of gold (1.6 million tonnes grading 1.38 g/t gold) at open pit depth, as well as an initial underground inferred mineral resource of 451,000 ounces of gold (3.1 million tonnes grading 4.58 g/t gold) in higher-grade sulphide material
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2 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. |
3 Total cash costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for total cash costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
4 All-in-sustaining costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
Fourth Quarter and Full Year 2019 Financial and Production Highlights
In the fourth quarter of 2019, strong operational performance continued at the Company's mines, which led to record quarterly payable gold production of 494,678 ounces, which includes the pre-commercial production from the Barnat deposit at Canadian Malartic. Excluding the pre-commercial production ounces at Barnat, payable gold production was 491,541 ounces, compared to 410,712 ounces in the fourth quarter of 2018.
For the full year 2019, payable gold production was a record 1,782,147 ounces, which includes the pre-commercial production ounces at the Meliadine mine, the Amaruq satellite deposit and the Barnat deposit. Excluding the pre-commercial production ounces, payable gold production was 1,696,443 ounces, compared to 1,626,669 ounces in 2018.
The higher level of gold production in the fourth quarter of 2019 and the full year 2019, when compared with the prior-year periods, was primarily due to the start of production at the Meliadine mine in 2019. A detailed description of the production at each mine is set out below.
Production costs per ounce in the fourth quarter of 2019 were
Production costs per ounce for the full year 2019 were
Production costs per ounce and total cash costs per ounce in the fourth quarter of 2019 and the full year 2019 increased when compared to the prior-year periods primarily due to higher costs relating to the slower than expected ramp up at the Amaruq satellite deposit and the Meliadine mine, partially offset by higher gold production.
AISC in the fourth quarter of 2019 was
AISC in the fourth quarter of 2019 and for the full year 2019 increased when compared to the prior-year periods primarily due to higher total cash costs per ounce and higher sustaining capital costs, partially offset by expected higher gold production. A detailed description of the cost performance of each mine is set out below.
In the fourth quarter of 2019, an impairment reversal, net of tax, of
Cash Position Continues to Grow, Resulting in Increasing Financial Flexibility
Cash and cash equivalents and short-term investments increased to
The outstanding balance on the Company's credit facility remained nil at
With the upcoming debt maturity of
Approximately 16% of the Company's 2020 Canadian dollar exposure is hedged at an average floor price of approximately
Approximately 77% of the Company's diesel exposure relating to its
Capital Expenditures
Total capital expenditures (including sustaining capital) for the full year 2019 were
The following table sets out capital expenditures (including sustaining capital) in the fourth quarter and the full year 2019.
Capital Expenditures | ||||||||
(In thousands of US dollars) | ||||||||
Three Months Ended | Twelve Months Ended | |||||||
Sustaining Capital | ||||||||
LaRonde mine | $ | 18,794 | $ | 72,165 | ||||
2,140 | 6,207 | |||||||
Canadian Malartic mine | 13,960 | 45,880 | ||||||
18,801 | 18,801 | |||||||
Meliadine mine | 12,554 | 30,937 | ||||||
Kittila mine | 17,490 | 78,182 | ||||||
7,795 | 22,711 | |||||||
9,511 | 28,098 | |||||||
Creston Mascota mine | — | — | ||||||
La India mine | 3,479 | 10,851 | ||||||
$ | 104,524 | $ | 313,832 | |||||
LaRonde mine | $ | 10,481 | $ | 20,011 | ||||
— | 2,770 | |||||||
Canadian Malartic mine | 9,554 | 37,171 | ||||||
17,556 | 174,866 | |||||||
Amaruq underground project | 8,300 | 38,400 | ||||||
Meliadine mine | 6,015 | 91,554 | ||||||
Kittila mine | 37,023 | 101,597 | ||||||
4,056 | 21,223 | |||||||
2,645 | 13,861 | |||||||
Creston Mascota mine | — | — | ||||||
La India mine | 931 | 4,516 | ||||||
Other | 2,984 | 5,027 | ||||||
$ | 99,545 | $ | 510,996 | |||||
Total Capital Expenditures | $ | 204,069 | $ | 824,828 |
Senior Management Changes
As we continue to position Agnico Eagle for the future, some changes to our senior management team were made at the end of 2019. These changes are part of our leadership development and succession plan, which is designed to ensure we have the right leaders in the right roles to build on our long-term success.
Transitioning to her retirement at the end of 2020,
Quarterly Dividend Increased by 14%
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of
Expected Dividend Record and Payment Dates for 2020
Record Date | Payment Date |
*Declared |
Dividend Reinvestment Plan
Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
Fourth Quarter 2019 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on
Via Webcast:
A live audio webcast of the conference call will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-647-427-7450 or toll-free 1-888-231-8191. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access code 7265864. The conference call replay will expire on
The webcast along with presentation slides will be archived for 180 days on the Company's website.
New Three-Year Guidance – Forecast Shows Continued Production Growth
The Company is announcing its detailed production and cost guidance for 2020, and mine by mine production forecasts for 2020 through 2022. Gold production in 2020 is now forecast to be 1.875 million ounces. This compares to previous guidance of 1.9 to 2.0 million ounces. Gold production in 2021 is now forecast to be between 2.01 million and 2.09 million ounces (mid-point of 2.05 million ounces), which is the same as previous guidance. Gold production in 2022 is forecast to be between 2.07 million and 2.14 million ounces (mid-point of 2.1 million ounces).
The new guidance in 2020 largely reflects a slower than previously expected ramp up of production at the new
In 2020, gold production is expected to ramp up sequentially on a quarter-over-quarter basis. The first quarter of 2020 is expected to be the weakest quarter for gold production and the Company expects production over the remaining quarters to average approximately 470,000 to 490,000 ounces of gold per quarter.
Total cash costs per ounce in 2020 are expected to be between
AISC for 2020 are expected to be between
With the start-up of operations at Meliadine and Amaruq in 2019, the Company now has four cornerstone production assets (the
With gold production expected to increase, and total cash costs forecast to decline on a quarter-over-quarter basis in 2020, the Company expects to see a significant improvement in cash flow generation through year-end.
Three-Year Guidance Shows 18% Growth Over 2019 Production Level; Costs Forecast to Decline as Gold Production Increases Through 2022
Mine by mine production and cost guidance for 2020, and mine by mine production forecasts for 2021 and 2022 are set out below. Opportunities to further optimize and improve production and unit cost forecasts from 2020 through 2022 are being evaluated.
Estimated Payable Gold Production | |||||||||||||
2019* | 2020* | 2021 | 2022 | ||||||||||
Actual | Forecast | Forecast | Forecast | ||||||||||
Range | Range | ||||||||||||
Northern Business | |||||||||||||
402,984 | 342,500 | 342,500 | 357,500 | 350,000 | 352,500 | 367,500 | 360,000 | ||||||
Canadian Malartic (50%) | 334,596 | 330,000 | 345,000 | 355,000 | 350,000 | 325,000 | 335,000 | 330,000 | |||||
140,884 | 137,500 | 130,000 | 140,000 | 135,000 | 127,500 | 132,500 | 130,000 | ||||||
Kittila mine | 186,101 | 195,000 | 230,000 | 240,000 | 235,000 | 257,500 | 267,500 | 262,500 | |||||
193,489 | 245,000 | 367,500 | 377,500 | 372,500 | 412,500 | 417,500 | 415,000 | ||||||
Meliadine mine | 238,394 | 350,000 | 380,000 | 390,000 | 385,000 | 392,500 | 402,500 | 397,500 | |||||
1,496,448 | 1,600,000 | 1,795,000 | 1,860,000 | 1,827,500 | 1,867,500 | 1,922,500 | 1,895,000 | ||||||
Southern Business | |||||||||||||
155,124 | 150,000 | 125,000 | 135,000 | 130,000 | 132,500 | 142,500 | 137,500 | ||||||
Creston Mascota mine | 48,380 | 35,000 | — | — | — | — | — | — | |||||
La India mine | 82,190 | 90,000 | 85,000 | 95,000 | 90,000 | 65,000 | 70,000 | 67,500 | |||||
285,694 | 275,000 | 210,000 | 230,000 | 220,000 | 197,500 | 212,500 | 205,000 | ||||||
Total Gold Production | 1,782,142 | 1,875,000 | 2,005,000 | 2,090,000 | 2,047,500 | 2,065,000 | 2,135,000 | 2,100,000 | |||||
* Includes pre-commercial gold production of 35,281 ounces at Amaruq and 47,281 ounces at Meliadine | ||||||||||||||||||||||
** Includes estimated pre-commercial gold production of 15,500 ounces at Canadian Malartic relating to the Barnat pit and 16,500 ounces at Meliadine relating to phase 2 expansion |
In 2021, the estimated mid-point production level is currently forecast to be approximately 2.05 million ounces of gold, which is essentially unchanged from the
Total cash costs per ounce on a by-product basis of gold produced ($ per ounce): | |||||||||
2019 | 2020 | ||||||||
Actual | Forecast | ||||||||
Northern Business | |||||||||
$ | 502 | $ | 620 | ||||||
Canadian Malartic mine (50%) | 606 | 624 | |||||||
584 | 650 | ||||||||
Kittila mine | 736 | 745 | |||||||
1,152 | 1,282 | ||||||||
Meliadine mine | 748 | 670 | |||||||
$ | 672 | $ | 753 | ||||||
Southern Business | |||||||||
639 | 707 | ||||||||
Creston Mascota mine | 554 | 452 | |||||||
La India mine | 823 | 803 | |||||||
$ | 678 | $ | 706 | ||||||
Total | $ | 673 | $ | 746 |
Currency and commodity price assumptions used for 2020 cost estimates and sensitivities are set out in the table below:
2020 commodity and currency price assumptions | Approximate impact on total cash costs per ounce basis | ||
Silver ($/oz) | 17.50 | ||
Copper ($/lb) | 2.75 | 10% change in copper price | |
Zinc ($/lb) | 1.10 | 10% change in zinc price | |
Diesel (C$/ltr) | 0.85 | 10% change in diesel price | |
C$/US$ | 1.30 | 1.0% change in C$/US$ | |
US$/EUR | 1.15 | 1.0% change in US$/EUR | |
MXP/US$ | 18.00 | 10% change in MXP/US$ |
Depreciation Guidance
Agnico Eagle expects its 2020 depreciation and amortization expense to be between
General & Administrative Cost Guidance
Agnico Eagle expects 2020 general and administration expenses to be between
Please see the supplemental financial data section of the Financial and Operating Database on the Company's website for additional historical financial data.
Tax Guidance
For 2020, the Company expects its effective tax rates to be:
The Company's overall tax rate is expected to be between 40% and 45% for the full year 2020.
Updated Three Year Guidance Plan
Since the prior three-year gold production guidance of
Northern Business
ABITIBI REGION,
LaRonde Complex Forecast | 2019 | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 380,000 | 390,000 | 385,000 | n.a. | ||||
Current Guidance (oz) | 402,984 (actual) | 342,500 | 350,000 | 360,000 |
LaRonde | Ore Milled | Gold |
| Silver |
| Zinc (%) |
| Copper |
| Minesite (C$)5 | |||||||||
2,866 | 3.93 | 94.6% | 9.7 | 76.6% | 0.29% | 69.5% | 0.15% | 80.6% |
In 2019, the Company was granted a revision to the Certificate of Authorization at the
At the
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5 Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance" below. |
The lower gold production at the LaRonde mine in 2020 is primarily due to strengthening ground support and more conservative seismic protocols in the West mine area. This impact (lower production and higher total cash costs per ounce) will be concentrated in the first quarter of the year as ground support infrastructure work is completed. Changes in the mining sequence related to the merging of the mining pyramids in the East and West mine areas is also expected to impact production in 2020 and into 2021. Production is expected to increase (and costs decrease) in 2022 and beyond.
Canadian | 2019* | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 330,000 | 350,000 | 350,000 | n.a. | ||||
Current Guidance (oz) | 334,596 (actual) | 330,000 | 350,000 | 330,000 |
Canadian | Ore Milled | Gold (g/t) |
| Minesite Costs | |||
9,710 | 1.15 | 87.9% |
*Includes 2019 pre-commercial gold production of 3,137 ounces at the Barnat pit |
**2020 Canadian Malartic guidance in the table above excludes estimated pre-commercial production tonnes from the Barnat pit. Estimated pre-commercial production is expected to be approximately 15,500 ounces of gold |
At Canadian Malartic (in which Agnico Eagle has 50% ownership), the lower production guidance for 2020 (as compared to Previous Guidance) is primarily due to the processing of lower-grade ore. A reduced mining footprint and a higher density of underground openings in the Canadian Malartic pit has limited the access to higher-grade tonnes, which will be supplemented by lower-grade stockpiles in 2020.
Goldex Forecast | 2019 | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 115,000 | 120,000 | 117,500 | n.a. | ||||
Current Guidance (oz) | 140,884 (actual) | 137,500 | 135,000 | 130,000 |
Goldex Forecast 2020 | Ore Milled | Gold (g/t) |
| Minesite Costs | |||
2,765 | 1.70 | 91% |
At
Meadowbank Complex Forecast | 2019* | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 200,000 | 272,500 | 351,000 | n.a. | ||||
Current Guidance (oz) | 193,489 (actual) | 245,000 | 372,500 | 415,000 |
*Includes 2019 pre-commercial gold production of 35,281 ounces at Amaruq (previous guidance of 40,000 ounces) |
Meadowbank Complex Forecast | Ore Milled | Gold (g/t) |
| Minesite Costs | |||
2,826 | 2.90 | 93% |
At the
The higher production guidance for 2021 (as compared to Previous Guidance) is due to a slight increase in expected grade and improved productivity expected to result from initiatives being put in place in 2020. Costs in 2021 are expected to improve significantly over 2020.
The Company is taking a phased approach to development at the Amaruq underground project. Additional capital is being spent in 2020 to further extend underground development at the Whale Tail deposit. At year-end 2019, the Company declared an initial underground probable mineral reserve of 577,000 ounces of gold (3.3 million tonnes grading 5.43 g/t gold). The Company believes that there is good potential to further increase the mineral reserves. The Company's current evaluations forecast approximately 50,000 to 60,000 ounces gold being produced from underground operations beginning in 2022.
Meliadine Forecast | 2019* | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 230,000 | 385,000 | 365,000 | 375,000 | ||||
Current Guidance (oz) | 238,394 (actual) | 350,000 | 385,000 | 397,500 |
*Includes pre-commercial gold production of 47,281 ounces at Meliadine (previous guidance of 60,000 ounces) |
Meliadine Forecast 2020** | Ore Milled | Gold (g/t) |
| Minesite Costs | |||
1,345 | 8.00 | 96.4% |
**2020 Meliadine guidance in the table above excludes estimated pre-commercial production tonnes relating to the Meliadine Phase 2 expansion. Estimated pre-commercial production is expected to be approximately 16,500 ounces of gold |
At Meliadine, the lower production guidance for 2020 (as compared to Previous Guidance) is primarily due to a more conservative ramp up in the mining plan, which will result in lower grade and tonnage processed in 2020, primarily in the first half of the year. The lower grades are primarily related to changes in the mining sequence, while the lower tonnage is largely due to modifications to the front end of the crushing circuit.
The higher production guidance for 2021 and 2022 (as compared to Previous Guidance) is primarily due to the advancement of the Phase 2 expansion, which results in increased tonnage processed, albeit at lower grades (from the Tiriganiaq open pits). Additional details on the Phase 2 expansion are provided in the Meliadine operating section below.
Minesite costs per tonne at Meliadine are expected to decline as production levels increase.
Kittila Forecast | 2019 | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 175,000 | 215,000 | 245,000 | n.a | ||||
Current Guidance (oz) | 186,101 (actual) | 195,000 | 235,000 | 262,500 |
Kittila Forecast 2020 | Ore Milled | Gold (g/t) |
| Minesite Costs | |||
1,640 | 4.30 | 86% | 77 |
At Kittila, the lower production guidance for 2020 and 2021 (as compared to Previous Guidance) is primarily due to a slight decrease in the reserve grade due to minor revisions to the reserve methodology, and mining sequence changes related to the underground expansion project, which is expected to be completed in 2022.
Southern Business
Pinos Altos Forecast | 2019 | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 165,000 | 150,000 | 146,500 | n.a. | ||||
Current Guidance (oz) | 155,124 (actual) | 150,000 | 130,000 | 137,500 |
Pinos Altos Forecast 2020 | Total Ore | Gold (g/t) | Gold (%) | Silver (g/t) |
(%) | Minesite Costs per Tonne | |||||
2,260 | 2.2 | 93.9% | 55.50 | 48.2% |
At
Creston Mascota Forecast | 2019 | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 35,000 | 22,500 | — | n.a. | ||||
Current Guidance (oz) | 48,380 (actual) | 35,000 | — | — |
Creston Mascota Forecast 2020 | Total Ore | Gold (g/t) | Gold (%) | Silver (g/t) | Silver (%) | Minesite Costs per Tonne | |||||
420 | 2.77 | 93.8% | 143.36 | 36.4% |
At Creston Mascota, the significantly higher production guidance for 2020 (as compared to Previous Guidance) is largely due to higher grade ore. Additional higher-grade ore was identified in the fourth quarter of 2019, but access was limited due to higher than expected rainfall. Mining activities are now forecast to continue through the first half of 2020, with leaching activities expected to continue through year-end 2020. Costs are expected to decline once mining activities have ceased.
La India Forecast | 2019 | 2020 | 2021 | 2022 | ||||
Previous Guidance (oz) | 90,000 | 95,000 | 90,000 | n.a. | ||||
Current Guidance (oz) | 82,190 (actual) | 90,000 | 90,000 | 67,500 |
La India Forecast 2020 | Total Ore | Gold (g/t) | Gold (%) | Silver (g/t) | Silver (%) | Minesite Costs per Tonne | |||||
6,118 | 0.69 | 66.3% | 1.98 | 16.1% |
At La India, current guidance is essentially in line with the Previous Guidance. The Company continues to evaluate the potential to develop other satellite zones such as
Total Capital Expenditures Expected to Decline in 2021; Sustaining Capital Costs Expected to Remain Stable through 2022
The estimated capital expenditures for 2020 total approximately
Estimated 2020 Capital Expenditures | |||||||||||
(In thousands of US dollars) | |||||||||||
Sustaining Capital | Development Capital |
Capitalized Exploration | |||||||||
Sustaining | Non- sustaining | ||||||||||
$ | 87,900 | $ | 37,100 | $ | 2,000 | — | |||||
Canadian Malartic mine (50%)* | 52,600 | 22,400 | — | — | |||||||
46,600 | 47,200 | — | — | ||||||||
Amaruq Underground project | — | 29,000 | — | — | |||||||
Meliadine mine* | 37,800 | 64,500 | 2,900 | 4,000 | |||||||
Kittila mine | 38,600 | 134,100 | 9,000 | — | |||||||
25,500 | 14,700 | 4,300 | 2,100 | ||||||||
29,100 | 8,200 | 500 | — | ||||||||
Creston Mascota mine | — | — | — | — | |||||||
La India mine | 12,200 | 24,900 | 700 | — | |||||||
Other | 2,000 | — | 100 | — | |||||||
Total Capital Expenditures | $ | 332,300 | $ | 382,100 | $ | 19,500 | $ | 6,100 |
*2020 forecast capital expenditures relating to Canadian Malartic and Meliadine incorporate anticipated pre-production gold ounces of 15,500 and 16,500, respectively. |
Using the Company's 2020 budget assumptions, total capital expenditures are forecast to be approximately
2020 Exploration Program and Budget – Key Programs at Kittila,
A large component of the 2020 exploration program will be focused on the Canadian Malartic and
At the Kittila mine, the Company expects to spend
The drilling includes 46,000 metres of capitalized conversion drilling at the mine as described above and 12,000 metres of expensed regional exploration drilling on targets beyond the current mineral resource area.
At the
At the
At the Amaruq deposit at the
Another
At the Canadian Malartic mine, the Company expects to spend
At the
At the
2020 Global Exploration Program and Corporate Development Budget
Expensed Exploration | Capitalized Exploration | ||||||||
US$ millions | 000 metres | US$ millions | 000 metres | ||||||
Amaruq | $ | 2.9 | 8.4 | ||||||
Meliadine | 1.7 | 4.9 | 6.9 | 30.0 | |||||
Other | 2.5 | 6.3 | |||||||
7.1 | 19.6 | 6.9 | 30.0 | ||||||
LaRonde and LZ5 | 1.5 | 9.5 | 2.0 | 20.6 | |||||
0.5 | 3.0 | 6.4 | 76.0 | ||||||
Other | 2.7 | 14.2 | |||||||
4.7 | 26.7 | 8.4 | 96.6 | ||||||
Canadian Malartic projects* | |||||||||
Canadian Malartic mine* | 7.5 | 90.0 | |||||||
Regional exploration and studies | 5.0 | 22.0 | |||||||
Canadian Malartic subtotal | 12.5 | 112.0 | — | — | |||||
| 10.3 | 48.0 | |||||||
| 1.1 | 5.0 | |||||||
11.4 | 53.0 | ||||||||
Kittila | 2.8 | 12.0 | 9.0 | 46.0 | |||||
Barsele | 1.9 | 8.3 | |||||||
Other | 1.1 | — | |||||||
5.8 | 20.3 | 9.0 | 46.0 | ||||||
7.3 | 39.0 | 0.5 | 3.0 | ||||||
La India | 6.6 | 22.0 | 0.7 | 5.0 | |||||
El Barqueno | 2.3 | — | |||||||
10.4 | 25.0 | ||||||||
Other | 7.3 | 13.0 | 0.1 | ||||||
33.9 | 99.0 | 1.3 | 8.0 | ||||||
7.8 | 12.0 | ||||||||
G&A, land fees, etc. | 6.4 | ||||||||
Total Exploration | $ | 89.6 | 342.6 | $ | 25.6 | 180.6 | |||
| $ | 40.3 | |||||||
Total Exploration and Corporate Development | $ | 129.9 |
*For the |
Pipeline Projects Continue to Advance – Opportunities to Enhance Short-Term and Longer-Term Production
The Company has an extensive pipeline of development and advanced exploration projects, several of which are located near its existing mining operations. These projects have the potential to add further value and enhance the current gold production profile in the short-term (2022-2023) and longer-term (2023 and beyond). Updates on the various projects are set out below.
Near-Term Opportunities to Enhance Production Starting in 2022
The Company is evaluating several potential opportunities (none of which has yet been approved for construction, with the exception of the Meliadine Phase 2 expansion) at a number of existing operations to build further value and enhance the gold production profile starting in 2022. These opportunities are set out in the table below with certain projects discussed in more detail below.
Minesite/ Region | Opportunity | Gold Mineral Resources/Mineral Reserves* |
Drilling continues to encounter high-grade mineralization in the West mine at depth. Exploration strategy is being reviewed to evaluate extensions of previously mined zones and areas that have seen limited exploration activity (portions of the Bousquet property). At LZ5, drilling will be carried out to expand mineral reserves and mineral resources at depth and test other nearby satellite zones (Ellison) | Ellison has indicated mineral resources of 71koz and inferred mineral resources of 461koz | |
Potential for increased throughput from Deep 1 and potential for additional development of Deep 2. Also potential for increased gold production from the | Deep 2 has mineral reserves of 179koz, indicated mineral resources of 177koz and inferred mineral resources of 381koz. | |
Ongoing evaluation of the potential to develop portions of the higher grade underground deposits at Amaruq in permafrost only | The Amaruq underground has mineral reserves of 577koz in permafrost only | |
Meliadine | Staged implementation of the Phase 2 expansion. Initial work will focus on open pit development at the | Tiriganiaq has open pit mineral reserves of 590koz |
Canadian Malartic (50%) | Continued evaluation of potential production scenarios from the Odyssey and | |
Ongoing exploration and evaluation of potential development scenarios for the Cubiro and | Cubiro has underground indicated mineral resources of 212koz gold and 1,403koz silver and inferred mineral resources of 136koz gold and 912koz silver. | |
La India | Continued exploration and evaluation of the | Chipriona has indicated mineral resources of 45koz gold, 2.1Moz silver, 359 tonnes of copper and 17,000 tonnes of zinc and inferred mineral resources of 238koz gold, 29.5Moz silver, 15,400 tonnes of copper and 86,900 tonnes of zinc |
*For a detailed discussion of mineral reserves and mineral resources see "Detailed Mineral Reserve and Mineral Resource Data (as at |
The original Meliadine mine plan envisioned a 3,750 tpd mill with ore being sourced entirely from underground in years one to four. The mill capacity for Phase 2 was expected to increase to approximately 6,000 tpd, with ore being sourced from both underground and open pits starting in year five. The increased tonnage from the Phase 2 expansion was forecast to offset an expected decline in ore grade and keep production stable at approximately 400,000 ounces of gold per year.
The current Meliadine mill facility has demonstrated the ability to operate well in excess of the initial 3,750 tpd capacity (maximum daily rate in 2019 reached of 4,950 tpd). As a result, the Company has decided to accelerate the start of the Phase 2 expansion by approximately two years to utilize this extra mill capacity. The mill expansion will be undertaken in stages with processing expected to increase from current levels to 4,600 tpd in the fourth quarter of 2020 and ultimately reaching 6,000 tpd in 2024. The initial source of open pit ore will be from pits developed on the Tiriganiaq deposit. Development of the open pits is expected to provide additional mining flexibility.
The Tiriganiaq open pits contain probable gold mineral reserves of 590,412 ounces (3.8 million tonnes grading 4.89 g/t gold). These pits are expected to be mined in 2020 through 2027, with production gradually ramping up over the eight-year reserve life. The acceleration of the Phase 2 expansion is expected to result in slightly higher gold production (compared to Previous Guidance) in 2021 and 2022. Production from the Tiriganiaq pit in 2020 is forecast to be approximately 16,500 ounces, all of which is considered pre-commercial.
At Amaruq, conversion drilling of underground mineral resources was successful in 2019 beneath the planned Whale Tail pit bottom and in the
Aided by an exploration ramp that is currently 255 metres below surface and continues to be extended, exploration drilling has confirmed grades and widths of the
The plan for 2020 is to spend
Work is continuing at Amaruq to evaluate the potential for an underground operation, which could run concurrent with the open pit deposits. Exploration continues to focus on finding additional sources of open pit ore. Preliminary work suggests that there is an opportunity to selectively mine portions of the higher-grade underground deposits at Amaruq in permafrost only. This approach is expected to reduce operating and capital costs (limited heating requirements), while preserving the option to mine additional underground mineral reserves and/or mineral resources.
The Company believes it is possible that underground production could begin in 2022 and run through 2026. Initial annual gold production from underground could be at a rate of approximately 50,000 to 60,000 ounces, and average approximately 110,000 ounces per year over the life of mine. Additional work is being carried out to evaluate the potential to increase mineral reserves and exploit a portion of the underground mineral resources. A more detailed project evaluation is expected to be released before year-end. The Company will continue to use a phased approach to the underground development program at Amaruq in 2020.
At Canadian Malartic (50% owned), most of the exploration in 2019 was focused on the
Infill drilling highlights from the fourth quarter include 8.6 g/t gold over 25.8 metres at 1,071 metres depth and 4.2 g/t gold over 39.3 metres at 1,631 metres depth. In 2020 at East Gouldie, the aim of the drill program is to declare new inferred mineral resources at the zone and infill the current inferred mineral resources in the zone to convert them into indicated mineral resources by year-end 2020.
At
Additional details are available in the Mineral Reserves and Mineral Resources sections of this news release.
The substantial increases in mineral resources, particularly at the East Gouldie and
At
Development of the Akasaba West open pit has been postponed indefinitely based on the prioritization of development capital spending. Akasaba West contains mineral reserves of 147,000 ounces of gold and 25,900 tonnes of copper (5.4 million tonnes grading 0.85 g/t gold and 0.48% copper) and has the potential to contribute approximately 20,000 ounces of gold per year to the
Longer-Term Opportunities to Provide Production Growth Beyond 2023
Agnico Eagle has a strong pipeline of development projects that could provide further gold production growth beyond 2023. These opportunities are typically at an earlier stage than those outlined above. A summary of the longer-term opportunities is set out in the following table with certain projects discussed in further detail below.
Minesite/Region | Opportunity | Gold Mineral Resources/Mineral Reserves* |
Evaluation of the Deep 2 Zone (below 1,500 metres) | ||
Kittila | Drilling continues to extend the mineralization at depth and there is good potential to further optimize the development of the lower mine with shaft access (shaft construction is expected to be completed in the second quarter of 2021) | |
Continued evaluation of the regional potential at Amaruq. A new surface discovery could potentially extend the underground mine life | ||
Meliadine | Further drill-testing of known zones and gold occurrences on the 80-kilometre long greenstone belt | Approximately 50 gold showings have been documented at the Meliadine property |
Canadian Malartic (50%) | Evaluation of the potential for production from deeper portions (below 1,000 metres) of the Odyssey and | |
Barsele (55%) | Testing additional mineralized zones, with a focus on volcanogenic massive sulphide ("VMS") targets | Barsele has 176koz of indicated mineral resources and 1.0Moz of inferred mineral resources |
Evaluation of known mineralized trends with a view to potentially restart operations at this past-producing heap leach mine. The recent discovery of high-grade mineralization at Amelia opens up the potential to add a mill circuit to process higher grade sulphide ore from underground | ||
Continued evaluation of potential production scenarios at Upper Beaver. Recent drilling and reinterpretation has led to a significant increase in mineral resources at the past producing | Upper Beaver has 1.4Moz of mineral reserves, 403koz of indicated mineral resources and 1.4Moz of inferred mineral resources. | |
A re-interpretation of the deposit model is under way to evaluate potential production scenarios in a higher gold price environment |
*For a detailed discussion of mineral reserves and mineral resources see "Detailed Mineral Reserve and Mineral Resource Data (as at |
At the
The Company expects to publish an updated mineral resource estimate for the Upper Beaver deposit at year-end 2020. An increase in the mineral resources in the shallow basalts would have a significant positive impact on project economics, and could provide added flexibility for a future underground operation.
At the
In
At the
The Amelia mineral resources are part of the
The 2019 Espiritu Santo discovery, 500 metres east-southeast of Amelia, includes high-grade shallow mineralized structures yielding intersections such as 5.9 g/t gold and 159 g/t silver over 6.5 metres at 90 metres depth. More drilling is planned this year to test the extension of the new discovery in
The Company is currently evaluating a potential production scenario that utilizes a heap leach for lower grade mineralization and a small mill facility to process higher-grade ore. The Company believes that the
Mineral Reserve Gold Grade Improves by 5% and Ounces Decrease Slightly in 2019, Driven by Record Gold Production, Depletion at Low-
At
The Company's overall mineral reserve gold grade improved 5% to 2.83 g/t from 2.70 g/t, largely due to depletion of lower-grade Canadian Malartic ore as well as inclusion of initial, high-grade underground mineral reserves at the Amaruq deposit and an increase in mineral reserves at the Meliadine mine from four open pits. Agnico Eagle continues to have one of the highest mineral reserve grades among its North American peers.
Highlights from the
- At the Amaruq deposit at the
Meadowbank Complex , initial underground probable mineral reserves of 0.6 million ounces of gold (3.3 million tonnes grading 5.43 g/t gold). Amaruq's combined open-pit and underground mineral reserves saw a net increase of 0.4 million ounces gold at year-end 2019 - At the Meliadine mine, increase of 0.3 million ounces of gold in mineral reserves due to conversion to initial mineral reserves at the new
F Zone , Wesmeg, Normeg and Pump open pits, as well as underground conversion - At the
Goldex mine, addition of 0.1 million ounces of gold in mineral reserves (net of 2019 gold production) due to conversion drilling in the Deep 1, Deep 2 and South zones
The Company's
Gold Mineral Reserves By Mine or Deposit | Proven & Probable | Average Mineral Reserve Gold Grade (g/t) | ||||
Mineral Reserve (000s gold ounces) | ||||||
2019 | 2018 | Change (000s oz gold) | 2019 | 2018 | Change (g/t gold) | |
Northern Business | ||||||
LaRonde | 2,888 | 3,081 | (193) | 6.02 | 5.85 | 0.17 |
686 | 681 | 5 | 2.30 | 2.25 | 0.05 | |
Canadian Malartic (50%) | 2,389 | 2,780 | (391) | 1.11 | 1.10 | 0.01 |
1,088 | 962 | 125 | 1.61 | 1.58 | 0.03 | |
Akasaba West | 147 | 147 | 0 | 0.85 | 0.84 | 0.01 |
Meadowbank mine | 3 | 98 | (95) | 2.24 | 1.89 | 0.35 |
Amaruq | 3,318 | 2,882 | 436 | 3.96 | 3.59 | 0.37 |
Meadowbank (incl. Amaruq) | 3,320 | 2,979 | 341 | 3.96 | 3.49 | 0.47 |
Meliadine | 4,067 | 3,753 | 314 | 6.10 | 6.97 | (0.87) |
Upper Beaver | 1,395 | 1,395 | 0 | 5.43 | 5.43 | 0 |
Kittila | 4,096 | 4,414 | (318) | 4.40 | 4.50 | (0.10) |
Subtotal | 20,077 | 20,192 | (116) | 3.10 | 2.98 | 0.12 |
Southern Business | ||||||
957 | 1,184 | (227) | 2.06 | 2.15 | (0.09) | |
Creston Mascota | 61 | 82 | (21) | 2.49 | 1.77 | 0.72 |
La India | 490 | 581 | (90) | 0.75 | 0.74 | 0.01 |
Subtotal | 1,508 | 1,847 | (338) | 1.32 | 1.34 | (0.02) |
Total Mineral Reserves | 21,585 | 22,039 | (454) | 2.83 | 2.70 | 0.13 |
Data set out in the table above and certain other data in this news release have been rounded to the nearest thousand. See "Detailed Mineral Reserves and Mineral Resources Data (as of
The economic parameters used to estimate mineral reserves and mineral resources for all properties are set out in the table below. In prior years, the Company's economic parameters were determined using historic three-year average metals prices and foreign exchange rates in accordance with the
Assumptions used for the
Metal prices | Exchange rates | ||||||
Gold (US$/oz) | Silver (US$/oz) | Copper (US$/lb) | Zinc (US$/lb) | C$ per | Mexican peso per | US$ per €1.00 | |
Long-life operations | |||||||
Short-life operations – Creston Mascota ( satellite operations at | Not | ||||||
Upper Beaver*, Canadian Malartic mine** | Not | Not | Not | Not |
*The Upper Beaver project has a net smelter return (NSR) cut-off value of |
**The Canadian Malartic mine uses a cut-off grade between 0.40 g/t and 0.43 g/t gold (depending on the deposit) |
The above metal price assumptions are below the three-year historic gold and silver price averages (from
At the Amaruq deposit at the
At the Meliadine mine, the conversion from indicated mineral resources to mineral reserves of the
At the
At the Canadian Malartic mine, the net decrease of approximately 391,000 ounces of gold in mineral reserves (reflecting Agnico Eagle's 50% interest) is largely due to the mining of approximately 376,000 in-situ ounces of gold (50%) in 2019. Some of the increasing mineral resources at the Odyssey, East Gouldie and
At the Kittila mine, conversion and exploration drilling, as well as a revision of reserve-estimation parameters, resulted in a decrease of approximately 86,000 ounces of gold in mineral reserves. With the mining of 212,000 ounces of in-situ gold in 2019, the result was an overall decrease in mineral reserves of 318,000 ounces of gold at Kittila.
At
At the LaRonde mine, delineation and conversion drilling programs added approximately 160,000 ounces of gold to mineral reserves. This was more than offset by approximately 361,000 ounces of in-situ gold mined in 2019, resulting in a net decrease of approximately 193,000 ounces of gold in mineral reserves at LaRonde.
It is the Company's goal to maintain its global mineral reserves at approximately 10 times its annual gold production rate. The current mineral reserves remain within this range when compared to the Company's projected annual 2020 gold production guidance.
In addition to gold, Agnico Eagle's proven and probable mineral reserves include by-product metals of approximately 37 million ounces of silver at the
At an assumed gold price of
Measured and Indicated Mineral Resources Increase by 4% to 18.1 Million Ounces of Gold Due to Initial Indicated Mineral Resources at
Highlights from the
- At the
Upper Canada deposit at theKirkland Lake project, initial indicated mineral resources of 0.7 million ounces of gold (9.7 million tonnes grading 2.23 g/t gold) - At
Goldex , indicated mineral resources increased by 328,000 ounces of gold mainly due to optimizing the estimation method
The Company's measured and indicated mineral resources now total 425 million tonnes grading 1.32 g/t gold, or 18.1 million ounces of gold. This represents a 4% (665,000-ounce) increase in ounces of gold, but a small decrease in grade from 1.36 g/t gold a year earlier (see the Company's news release dated
The increase in the Company's measured and indicated mineral resources is mainly due to the inclusion of an initial indicated mineral resources of 693,000 ounces of gold (9.7 million tonnes grading 2.23 g/t gold) at the
Indicated mineral resources at
Conversion drilling at the
Initial Inferred Mineral Resources at East Gouldie Discovery and Additional Inferred Mineral Resources Below 1,000 Metres at East Malartic Increase Inferred Mineral Resources by 19% to 21.5 Million Ounces
Highlights from the
- At the East Gouldie discovery at the Canadian Malartic mine property, initial inferred mineral resources of 1.4 million ounces of gold (12.8 million tonnes grading 3.34 g/t gold) (reflecting Agnico Eagle's 50% interest)
- At
East Malartic , the revision of the cut-off grade and mining assumptions resulted in the inclusion of new mineral resources below 1,000 metres depth and have increased inferred mineral resources by 1.2 million ounces of gold (reflecting Agnico Eagle's 50% interest) - At Kittila, inferred mineral resources have increased 70% (716,000 ounces of gold) due to exploration at Roura and Rimpi, new estimation parameters and changing the bottom limit for resources reporting from 1,400 metres to 1,540 metres below surface
- At the Amelia deposit at
Santa Gertrudis , initial underground inferred mineral resources have added 0.5 million ounces of gold (3.1 million tonnes grading 4.58 g/t gold)
The Company's inferred mineral resources now total 250 million tonnes grading 2.67 g/t gold, or approximately 21.5 million ounces of gold. This represents an approximate 19% (3.36 million ounce) increase in ounces of gold, at a slight decrease in grade from 2.69 g/t gold in the
The increase to inferred mineral resources was mainly due to substantial new inferred mineral resources being estimated at underground depths on the Canadian Malartic mine property in the East Gouldie and
At East Gouldie, continued exploration and infill drilling (announced in the Company's news release dated
At Kittila, inferred mineral resources have increased by 70% (716,000 ounces gold) due to several factors. Approximately 327,000 ounces of gold was added due to exploration drilling at Roura and Rimpi; approximately 243,000 ounces of gold was added from the adoption of new estimation parameters for the mineral resources estimate; and approximately 146,000 ounces of gold was added by lowering the bottom limit for estimating mineral resources from 1,400 metres to 1,540 metres depth below surface. At Kittila, inferred mineral resources now total 1.7 million ounces of gold (13.8 million tonnes grading 3.90 g/t gold).
At
The distribution of mineral resources by property is set out in the following table. For full details including tonnage and grade, see the "Detailed Mineral Reserve and Mineral Resource Data (as at
Measured & Indicated Mineral Resources | Inferred Mineral Resources | ||||
(000 oz gold) | (000 oz gold) | ||||
Northern Business | |||||
LaRonde | 488 | 854 | |||
624 | 611 | ||||
Ellison | 71 | 461 | |||
Canadian Malartic (50%) | 431 | 92 | |||
Odyssey (50%) | 68 | 833 | |||
347 | 2,596 | ||||
East Gouldie (50%) | 0 | 1,369 | |||
2,011 | 1,212 | ||||
Akasaba West | 98 | 0 | |||
Zulapa | 0 | 39 | |||
Meadowbank | 90 | 0 | |||
Amaruq | 1,070 | 1,520 | |||
1,160 | 1,520 | ||||
Meliadine | 2,799 | 2,631 | |||
4,501 | 12 | ||||
Upper Beaver ( | 403 | 1,416 | |||
Amalgamated | 265 | 406 | |||
Anoki/McBean ( | 320 | 382 | |||
693 | 1,768 | ||||
Kittila | 1,520 | 1,735 | |||
Kuotko | 0 | 29 | |||
Kylmäkangas | 0 | 250 | |||
Barsele (55%) | 176 | 1,005 | |||
Subtotal Northern Business | 15,976 | 19,221 | |||
Southern Business | |||||
1,057 | 435 | ||||
Creston Mascota | 24 | 10 | |||
La India | 238 | 15 | |||
Tarachi | 294 | 68 | |||
Chipriona | 45 | 238 | |||
El Barqueno Gold | 318 | 325 | |||
104 | 1,168 | ||||
Subtotal Southern Business | 2,079 | 2,259 | |||
Total Mineral Resources | 18,055 | 21,480 |
*Ownership of mines and projects is 100% unless otherwise indicated. Where Agnico Eagle's interest is less than |
NORTHERN BUSINESS REVIEW
ABITIBI REGION,
Agnico Eagle is currently
The 100% owned LaRonde mine in northwestern
Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 505 | 515 | |||
Tonnes of ore milled per day | 5,489 | 5,598 | |||
Gold grade (g/t) | 6.35 | 5.14 | |||
Gold production (ounces) | 97,470 | 81,022 | |||
Production costs per tonne (C$) | $ | 131 | $ | 136 | |
Minesite costs per tonne (C$) | $ | 128 | $ | 117 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 513 | $ | 666 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 422 | $ | 441 |
Production costs per tonne in the fourth quarter of 2019 decreased when compared to the prior-year period primarily due to the timing of unsold concentrate inventory, partially offset by higher underground mining and development costs and lower throughput levels. Production costs per ounce in the fourth quarter of 2019 decreased when compared to the prior-year period due to the reasons described above and higher gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to higher underground mining and development costs and lower throughput levels. Total cash costs per ounce in the fourth quarter of 2019 decreased when compared to the prior-year period due to higher gold production, partially offset by higher underground mining and development costs.
Gold production in the fourth quarter of 2019 increased when compared to the prior-year period due to higher grades and better localized block model reconciliation from the West mine area. In November, 2019, the mine achieved record gold grades of 7.1 g/t.
Year Ended | Year Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 2,057 | 2,108 | |||
Tonnes of ore milled per day | 5,636 | 5,775 | |||
Gold grade (g/t) | 5.46 | 5.32 | |||
Gold production (ounces) | 343,154 | 343,686 | |||
Production costs per tonne (C$) | $ | 139 | $ | 139 | |
Minesite costs per tonne (C$) | $ | 125 | $ | 119 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 627 | $ | 664 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 464 | $ | 445 |
Production costs per tonne for the full year 2019 were the same when compared to the prior-year period. Production costs per ounce for the full year 2019 decreased when compared to the prior-year period mainly due to the timing of unsold concentrate inventory.
Minesite costs per tonne for the full year 2019 increased when compared to the prior-year period due to higher underground mining and development costs and slightly lower throughput levels. Total cash costs per ounce for the full year 2019 increased when compared to the prior-year period due to the reasons described above.
Gold production for the full year 2019 was essentially the same when compared to the prior year period.
As discussed in previous news releases, the risks of more frequent and larger seismic events increase as the Company mines deeper at LaRonde. Over the years, the Company has continued to adapt and manage this risk. In early
This revised plan has been developed to ensure the safety of the Company's employees, secure the higher-grade orebody to the west and preserve existing mine infrastructure in the area. To implement this plan, mining activity in the West mine was temporarily suspended in
In the West mine area, the Company is currently reinforcing ground support including installing additional support (shotcrete, bolts and cables) in the main ramp and access points on various levels. Seismicity is expected to continue but ground support will be better adapted to manage stress levels.
In 2020, approximately 12% of the tonnage mined at LaRonde is expected to be from the West mine area. This tonnage is expected to increase to approximately 29% in 2021. The capital cost for additional ground support in the West mine area in 2020 is approximately
Normal mining activities in the West mine area are expected to restart in late March or early
Infrastructure continues to be developed to provide further access to mine LaRonde 3 and construction of the level 308 East mine cooling plant is ongoing. Development continues on the access ramp to LaRonde 11-3. Production activities are expected to begin at this zone in 2022.
Drilling continues to encounter high gold grades in the West mine area of LaRonde 3 project
Exploration work at the LaRonde mine is focused on conversion drilling in the LaRonde 3 project below 3,100 metres depth. The LaRonde 3 mineral reserves and indicated mineral resources currently extend to approximately 3,380 metres depth, while the inferred mineral resources continue to down to 3,800 metres
Selected recent drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Pierce points for all these holes are shown on the LaRonde Composite Longitudinal Section. All intercepts reported for the LaRonde mine show capped gold grades and uncapped silver, copper and zinc grades over estimated true widths.
Recent exploration and infill drill results from the West mine area of LaRonde 3 (below Level 311)
Drill hole | From (metres) | To (metres) | Depth of midpoint below surface (metres) | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped) | Silver grade (g/t) (uncapped) | Copper grade (%) | Zinc grade (%) |
LR-290-104 | 714.5 | 728.4 | 3,452 | 8.3 | 8.3 | 8.3 | 6.7 | 0.33 | 0.01 |
LR-290-107 | 674.9 | 682.9 | 3,413 | 4.9 | 26.0 | 22.0 | 15.5 | 0.62 | 0.02 |
*Holes at LaRonde 3 use a capping factor of 80 g/t gold and 1,000 g/t silver. None of the silver, copper or zinc values in this table were capped. |
[LaRonde Mine Composite Longitudinal Section]
Below approximately 2.8 kilometres depth, the LaRonde mine divides into two parallel lobes called the "East mine" and the slightly offset "West mine", as shown in the LaRonde Mine Composite Longitudinal Section. The gold grade generally increases with depth in the deep part of the mine. The 2019 conversion drill program has extended the core of higher gold grades in the West mine downward to 3,450 metres depth. Recent results in this area include hole LR-290-107 that intersected 22.0 g/t gold, 15.5 g/t silver, 0.62% copper and 0.02% zinc over 4.9 metres at 3,413 metres depth. Slightly deeper, hole LR-290-104 intersected 8.3 g/t gold, 6.7 g/t silver, 0.33% copper and 0.01% zinc over 8.3 metres at 3,452 metres depth.
These new high-grade intersections support and improve the geological model, and are expected to result in conversion of inferred mineral resources to indicated mineral resources in the western portion of the LaRonde 3 project, in the year-end 2020 update.
The 2020 exploration budget at the LaRonde mine includes
Exploration is also planned at the adjacent Bousquet property, where the Company is achieving strong operating results at LZ5 and the LaRonde 11-3 mine development. An exploration budget of
The development drift that is currently being driven west from LaRonde's level 146 to the LaRonde 11-3 project at level 149 will have the additional benefit of allowing for underground exploration drilling into previously unexplored targets in Zone 6 and 20N, starting in 2021.
The Company acquired the LZ5 project in 2003. The property lies adjacent to and west of the LaRonde mine and previous operators exploited the zone by open pit. In
Production costs per tonne in the fourth quarter of 2019 were
Production costs per tonne for the full year 2019 were
In the fourth quarter and for the full year 2018, the LZ5 circuit at the LaRonde mill processed ore for 55 days and 116 days respectively, as the mine achieved commercial production in
Continued productivity improvements and successful automation implementation (autonomous mucking and hauling) led to an increase in daily tonnage to 2,600 tpd by the end of the fourth quarter of 2019. Production in 2020 is forecast to increase to 2,800 tpd.
Given the success in mining the upper portions of the LZ5 deposit (from surface to 330 metres), mining activities will be extended to 480 metres starting in 2020. The Company is also evaluating the potential to develop deeper portions of LZ5 (480 metres to 700 metres) and potentially mine portions of the neighboring Ellison property from the LZ5 underground infrastructure.
In 2020, the Company will continue to test and refine automated mining techniques at LZ5 with a goal to increase the tonnage mined remotely to greater than 15% of the total tonnes mined.
In
All metrics exclude pre-production tonnes and ounces | Three Months Ended | Three Months Ended | |||
Tonnes of ore milled (thousands of tonnes) (100%) | 5,174 | 5,084 | |||
Tonnes of ore milled per day (100%) | 59,144 | 55,261 | |||
Gold grade (g/t) | 1.11 | 1.18 | |||
Gold production (ounces) | 81,905 | 84,732 | |||
Production costs per tonne (C$) | $ | 27 | $ | 26 | |
Minesite costs per tonne (C$) | $ | 26 | $ | 25 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 668 | $ | 604 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 630 | $ | 562 |
Production costs per tonne in the fourth quarter of 2019 were essentially the same when compared to the prior-year period. Production costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to higher contractor costs, lower deferred capitalized stripping costs and lower gold production.
Minesite costs per tonne in the fourth quarter of 2019 were essentially the same when compared to the prior-year period. Total cash costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above.
Gold production in the fourth quarter of 2019 decreased when compared to the prior-year period primarily due to lower grades resulting from less flexibility in the mining sequence. Pre-commercial production in 2019 from the Barnat pit was 3,137 ounces of gold.
All metrics exclude pre-production tonnes and ounces | Year Ended | Year Ended | |||
Tonnes of ore milled (thousands of tonnes) (100%) | 20,782 | 20,484 | |||
Tonnes of ore milled per day (100%) | 57,669 | 56,121 | |||
Gold grade (g/t) | 1.12 | 1.20 | |||
Gold production (ounces) | 331,459 | 348,600 | |||
Production costs per tonne (C$) | $ | 26 | $ | 25 | |
Minesite costs per tonne (C$) | $ | 26 | $ | 25 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 628 | $ | 573 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 606 | $ | 559 |
Production costs per tonne for the full year 2019 were essentially the same when compared to the prior-year period. Production costs per ounce for the full year 2019 increased when compared to the prior-year period due to higher contractor costs, lower deferred capitalized stripping costs and lower gold production.
Minesite costs per tonne for the full year 2019 were essentially the same when compared to the prior-year period. Total cash costs per ounce for the full year 2019 increased when compared to the prior-year period due to the reasons described above.
Gold production for the full year 2019 decreased when compared to the prior-year period due to lower grades resulting from less flexibility in the mining sequence. A reduced mining footprint and a higher density of underground openings in the Canadian Malartic pit has limited the access to higher-grade tonnes, which will be supplemented by lower-grade stockpiles in 2020.
In the fourth quarter of 2019, pre-commercial production began at the Barnat extension project as the new
As part of ongoing stakeholder engagement, the Partnership is in discussions with four First Nations groups concerning a potential collaboration agreement, which will include a financial component. As with the Good Neighbour Guide and other community relations efforts at Canadian Malartic, the Partnership is working collaboratively with stakeholders to establish cooperative relationships that support the long-term potential of the mine.
First Inferred Mineral Resource of 1.4 Million Ounces of Gold at
The Canadian Malartic property, together with the Rand Malartic and Midway properties, cover in excess of 25 kilometres along the
Deep drilling east of the open pit in late 2018 resulted in the discovery of a new gold-mineralized zone, located south of the
Five drill rigs completed 15,339 metres of exploration drilling (100% basis) in the fourth quarter of 2019, aiming to reduce drill spacing in the central portion of the
More details are available in the Mineral Resources section of this news release.
Selected recent drill intercepts from the
Selected recent drill results from the
Drill hole | Zone | From | To | Depth of | Estimated | Gold grade | Gold grade |
MEX19-135W | East Gouldie | 1,871.0 | 1,917.0 | 1,631 | 39.3 | 5.1 | 4.2 |
MEX19-145WA | East Gouldie | 1,848.6 | 1,866.0 | 1,626 | 13.6 | 4.1 | 4.0 |
and | East Gouldie | 1,878.0 | 1,906.0 | 1,650 | 21.6 | 5.9 | 5.3 |
MEX19-149AWB | North of East Gouldie | 1,680.0 | 1,690.7 | 1,546 | 8.6 | 2.6 | 2.6 |
and | East Gouldie | 1,989.0 | 2,010.0 | 1,789 | 16.5 | 2.5 | 2.5 |
MEX19-152W | East Gouldie | 1,592.8 | 1,606.0 | 1,153 | 10.9 | 7.0 | 6.7 |
MEX19-153 | East Gouldie | 1,723.8 | 1,756.0 | 1,551 | 29.3 | 3.1 | 3.1 |
MEX19-155 | East Gouldie | 1,650.0 | 1,669.4 | 1,392 | 18.1 | 4.0 | 4.0 |
MEX19-156 | East Gouldie | 1,749.0 | 1,805.0 | 1,524 | 49.6 | 3.2 | 3.2 |
MEX19-157 | East Gouldie | 1,720.0 | 1,728.0 | 1,241 | 7.0 | 6.4 | 4.6 |
MEX19-158A | East Gouldie | 1,517.0 | 1,545.0 | 1,071 | 25.8 | 8.9 | 8.6 |
and | East Gouldie | 1,551.6 | 1,559.1 | 1,084 | 6.9 | 3.9 | 3.9 |
MEX19-161 | East Gouldie | 1,751.0 | 1,770.0 | 1,546 | 17.3 | 5.8 | 5.5 |
ODY16-5037Ext | East Gouldie | 1,736.7 | 1,757.0 | 1,481 | 18.1 | 3.2 | 3.2 |
*Results from the |
[Canadian Malartic and Odyssey – Local Geology Map]
[Canadian Malartic and Odyssey – Composite Longitudinal Section]
Recent drill results from the
Close to the western margin of the zone at depth, hole MEX19-156 intersected 3.2 g/t gold over 49.6 metres at 1,524 metres depth and hole MEX19-153 intersected 3.1 g/t gold over 29.3 metres at 1,551 metres depth.
To the east at this depth, within the inferred mineral resource, hole MEX19-135W intersected 4.2 g/t gold over 39.3 metres at 1,631 metres depth and hole MEX19-161 intersected 5.5 g/t gold over 17.3 metres at 1,546 metres depth.
In 2020 at East Gouldie, the aim of the drill program is to support the declaration of new inferred mineral resources at the zone and infill the current inferred mineral resources in the zone to convert them into indicated mineral resources by year-end 2020.
At the Odyssey project, the Partnership is evaluating the underground potential of several other gold deposits close to the Canadian Malartic/Barnat open pit. These include the
At
Mineral resources at the nearby Odyssey deposit were basically unchanged, with indicated mineral resources of 68,000 ounces of gold (1.0 million tonnes grading 2.10 g/t gold) and inferred mineral resources of 833,000 ounces of gold (11.7 million tonnes grading 2.22 g/t gold) (50% basis), as of
An internal study is progressing at the Odyssey project, with consideration being given to potential new development synergies between the various zones at East Gouldie,
The Company has budgeted
The increases in mineral resources, particularly at the East Gouldie and
The 100% owned
Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 684 | 711 | |||
Tonnes of ore milled per day | 7,435 | 7,728 | |||
Gold grade (g/t) | 1.74 | 1.49 | |||
Gold production (ounces) | 34,963 | 31,508 | |||
Production costs per tonne (C$) | $ | 44 | $ | 37 | |
Minesite costs per tonne (C$) | $ | 43 | $ | 36 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 656 | $ | 625 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 640 | $ | 624 |
Production costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to a higher cost structure in the
Minesite costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above.
Gold production in the fourth quarter of 2019 increased when compared to the prior-year period due to higher grades. The utilization of the Rail-Veyor continues to improve with the best quarterly performance to-date for hauled tonnage of approximately 6,621 tpd. The lower throughput levels in the fourth quarter when compared to the prior year period were as a result of declining production from the M&E zones, which now have smaller stopes.
Year Ended | Year Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 2,785 | 2,625 | |||
Tonnes of ore milled per day | 7,630 | 7,192 | |||
Gold grade (g/t) | 1.71 | 1.54 | |||
Gold production (ounces) | 140,884 | 121,167 | |||
Production costs per tonne (C$) | $ | 39 | $ | 39 | |
Minesite costs per tonne (C$) | $ | 39 | $ | 39 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 586 | $ | 648 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 584 | $ | 646 |
Production costs per tonne for the full year 2019 were the same when compared to the prior-year period. Production costs per ounce for the full year 2019 decreased when compared to the prior-year period due to higher gold production.
Minesite costs per tonne for the full year 2019 were the same when compared to the prior-year period. Total cash costs per ounce for the full year 2019 decreased when compared to the prior-year period due to higher gold production.
Gold production for the full year 2019 increased when compared to the prior-year period due to higher grades and higher throughput resulting from the higher utilization of the Rail-Veyor system. A new maintenance bay is expected to becompleted later this year, which could result in additional Rail-Veyor capacity.
Mining in the
Drilling at the Deep 2 Zone continued in the fourth quarter of 2019 and continues to focus on areas below the current mineral reserve limit of Level 130.
Goldex Exploration Focused on Conversion to Mineral Reserves at Deep 2 and South Zones
The Goldex Deep 1 project (the top part of the
An exploration ramp that began construction in 2018 from level 120 (1,200 metres depth) continues to extend into the Deep 2 Zone (the bottom part of the
Following a successful test stope in 2018, the eastern part of the South Zone was added to the mine plan for 2019 and 2020. Additional stopes were added to the mine plan for 2020 to 2026 based on the successful conversion drilling in 2019 (discussed below). Exploration results from
An intensive drilling program included 22,357 metres in the Deep 2 Zone and 45,619 metres in the
These three zones are included in the
Selected 2019 drill results are set out in the table below, and drill hole collar coordinates are set out in a table in the Appendix of this news release. Pierce points for all these holes are shown on the Goldex Composite Longitudinal Section. All intercepts reported for the
Drill results from the Deep 2 and South zones at the
Drill hole | Zone | From | To | Depth of | True width | Gold grade | Gold grade |
GD90-131 | South | 172.0 | 175.2 | 969 | 3.2 | 3.9 | 3.9 |
GD90-139 | South | 150.0 | 154.5 | 1,009 | 4.5 | 5.9 | 5.9 |
GD95-065 | South | 112.5 | 120.0 | 995 | 7.5 | 3.0 | 3.0 |
GD100-172 | South | 15 | 19.5 | 987 | 4.5 | 13.7 | 13.7 |
GD100-304 | South | 66.0 | 71.9 | 955 | 5.9 | 13.7 | 13.7 |
and | South | 141.0 | 154.5 | 921 | 12.0 | 5.7 | 5.7 |
GD100-318 | South | 81.0 | 93.0 | 955 | 10.6 | 19.3 | 6.1 |
GD106-003 | South | 9.0 | 25.5 | 1,050 | 16.0 | 3.4 | 3.4 |
GD106-033 | South | 42.0 | 45.0 | 1,043 | 3.0 | 8.2 | 8.2 |
GD109-003 | South | 55.0 | 60.0 | 1,088 | 4.5 | 7.5 | 7.5 |
GD110-245 | South | 172.5 | 178.5 | 1,192 | 5.3 | 4.0 | 4.0 |
GD110-267 | South | 51.0 | 57.9 | 1,104 | 4.3 | 4.7 | 4.7 |
GD120-299 | Deep 2 | 250.5 | 318.0 | 1,256 | 63.0 | 2.1 | 2.1 |
GD120-300 | Deep 2 | 259.5 | 345.5 | 1,280 | 83.0 | 1.9 | 1.9 |
GD120-313 | Deep 2 | 351.0 | 418.5 | 1,342 | 62.0 | 1.8 | 1.8 |
GD120-324 | Deep 2 | 331.5 | 406.5 | 1,326 | 65.0 | 1.8 | 1.8 |
GD120-325 | Deep 2 | 343.5 | 432.0 | 1,375 | 77.0 | 1.3 | 1.3 |
GD120-331 | Deep 2 | 282.0 | 357.0 | 1,280 | 64.0 | 1.7 | 1.7 |
GD120-333 | Deep 2 | 301.5 | 379.5 | 1,332 | 70.0 | 1.2 | 1.2 |
GD120-335 | Deep 2 | 276.0 | 366.0 | 1,293 | 74.0 | 1.9 | 1.9 |
GD125-003 | Deep 2 | 376.5 | 441.0 | 1,364 | 52.0 | 2.0 | 2.0 |
GD125-024 | Deep 2 | 310.5 | 352.5 | 1,386 | 32.0 | 1.7 | 1.7 |
*At Deep 2 Zone, a capping factor was used for individual assays of 50 g/t gold; the cut-off grade used was 1.03 g/t gold. used was 2.59 g/t gold. |
[Goldex Composite Longitudinal Section]
The main target of exploration at
Drilling of the Deep 2 Zone is being done from level 120 and from the exploration ramp. Recent results include hole GD125-003 that intersected 2.0 g/t gold over 52.0 metres at 1,364 metres depth and hole GD125-024 that intersected 1.7 g/t gold over 32.0 metres at 1,386 metres depth. This drilling has allowed for the addition of 2.0 million tonnes grading 1.56 g/t gold (100,000 ounces of gold) to the mineral reserves in the Deep 2 Zone between levels 135 and 140.
The second largest target of exploration at
In 2019, the Company focused the drilling between 900 metres and 1,300 metres depth from the Deep 1 Zone on levels 90 to 120, and from the exploration ramp. Recent results include hole GD100-172 that intersected 13.7 g/t gold over 4.5 metres at 987 metres depth and hole GD110-245 that intersected 4.0 g/t gold over 5.3 metres at 1,192 metres depth. Other recent drilling included examples of localized wider mineralized areas such as hole GD100‑304 that intersected 5.7 g/t gold over 12.0 metres at 921 metres depth, hole GD100-318 that intersected 6.1 g/t gold over 10.6 metres at 955 metres depth and hole GD106-003 that intersected 3.4 g/t gold over 16.0 metres at 1,050 metres depth. This drilling has allowed for the addition of 1.1 million tonnes grading 3.18 g/t gold (110,000 ounces of gold) to the mineral reserves in the
The 2020
The
The exploration drill program in the fourth quarter comprised 1,054 metres (three holes) focused on testing deeper exploration targets within the mineralized zones at
The Company is still investigating various opportunities and potential synergies in terms of engineering concepts for future development of the Upper Beaver and
Selected recent intercepts from the
Selected recent exploration drill results from the Upper Beaver (UB) deposit and
Drill hole | Deposit | From | To | Depth of | Estimated | Gold grade | Gold grade | Copper |
KLUB19-525 | UB, Shallow Basalts | 84.0 | 90.0 | 68 | 5.4 | 11.9 | 6.7 | 0.10 |
and | UB, Shallow Basalts | 106.3 | 112.0 | 85 | 4.9 | 9.1 | 9.1 | 0.06 |
and | UB, Shallow Basalts | 117.0 | 126.0 | 95 | 7.4 | 7.1 | 7.1 | 0.00 |
KLUB19-530 | UB, Shallow Basalts | 16.5 | 31.0 | 17 | 10.3 | 3.0 | 3.0 | 0.11 |
and | UB, Shallow Basalts | 122.3 | 131.8 | 92 | 7.8 | 3.0 | 3.0 | 0.13 |
and | UB, Shallow Basalts | 153.0 | 172.0 | 118 | 16.5 | 5.5 | 5.5 | 0.30 |
including | UB, Shallow Basalts | 154.0 | 159.5 | 114 | 4.8 | 14.8 | 14.8 | 0.46 |
KLUB19-549 | UB, Shallow Basalts | 103.4 | 108.0 | 96 | 3.3 | 3.5 | 3.5 | 0.88 |
and | UB, Shallow Basalts | 132.0 | 136.0 | 122 | 3.3 | 6.6 | 6.6 | 1.36 |
and | UB, Shallow Basalts | 152.5 | 157.3 | 141 | 3.4 | 3.8 | 3.8 | 0.20 |
and | UB, Shallow Basalts | 188.0 | 193.0 | 174 | 4.3 | 5.7 | 5.7 | 0.21 |
KLUB19-552 | UB, Shallow Basalts | 295.0 | 299.5 | 260 | 3.4 | 5.3 | 5.3 | 0.01 |
and | UB, Shallow Basalts | 479.5 | 483.3 | 419 | 2.9 | 4.2 | 4.2 | 1.60 |
KLUB19-554 | UB, Shallow Basalts | 139.0 | 143.0 | 120 | 3.6 | 6.4 | 6.4 | 0.20 |
and | UB, Shallow Basalts | 283.5 | 291.0 | 244 | 5.3 | 5.6 | 5.6 | 1.34 |
KLUC19-535 | UC, | 145.0 | 177.5 | 124 | 24.7 | 1.4 | 0.9 | |
KLUC19-538 | UC, | 451.5 | 456.0 | 381 | 3.6 | 6.0 | 6.0 | |
KLUC19-541 | UC, | 157.5 | 197.0 | 124 | 27.7 | 1.4 | 1.4 | |
KLUC19-542 | UC, | 406.0 | 429.1 | 294 | 16.2 | 1.5 | 1.5 | |
KLUC19-546 | UC, | 486.0 | 493.5 | 428 | 3.8 | 4.1 | 4.1 | |
KLUC19-547 | UC, | 477.3 | 481.5 | 405 | 3.4 | 4.4 | 4.4 | |
KLUC19-551 | UC, | 230.3 | 235.7 | 190 | 3.2 | 3.8 | 3.8 | |
KLUC19-552 | UC, | 472.0 | 508.5 | 387 | 24.5 | 1.2 | 1.2 | |
and | UC, | 516.1 | 521.0 | 409 | 3.3 | 12.8 | 12.8 | |
KLUC19-553 | UC, Lower L zone | 832.0 | 844.0 | 761 | 6.0 | 2.6 | 2.6 |
*Estimated true width values are preliminary. |
**Holes in the shallow basalts at the Upper Beaver deposit use a capping factor of 30 g/t gold. The capping factors used for holes at the |
[Kirkland Lake Projects – Upper Beaver / Upper Canada Local Geology Map]
The Upper Beaver deposit is atypical of the
The recent drilling program at Upper Beaver targeted mineral resource conversion and extension in the portion of the deposit hosted in basalts from near-surface down to a depth of 400 metres, where multiple stacked zones of quartz and quartz-carbonate veining containing variable proportions of magnetite, chalcopyrite and molybdenite host the gold mineralization.
Recent results confirm the potential to increase inferred mineral resources or convert them to indicated mineral resources in Upper Beaver's shallow basalts. The results continue to display both high-grade, narrow intervals and broader zones of medium-grade mineralization. Multiple drill holes intersected copper-gold mineralization in more than one significant mineralized zone, showing the density of stacked mineralized structures in the shallow basalts.
There were positive conversion results at shallower depths within the inferred mineral resources, as demonstrated by the following intercepts. Hole KLUB19-525 intersected multiple gold intervals, including 6.7 g/t gold and 0.10% copper over 5.4 metres at 68 metres depth, 9.1 g/t gold and 0.06% copper over 4.9 metres at 85 metres depth and 7.1 g/t gold over 7.4 metres at 95 metres depth. Approximately 100 metres to the north, hole KLUB19-530 intersected 3.0 g/t gold and 0.11% copper over 10.3 metres at 17 metres depth, 3.0 g/t gold and 0.13% copper over 7.8 metres at 92 metres depth and 5.5 g/t gold and 0.30% copper over 16.5 metres at 118 metres depth (including 14.8 g/t gold and 0.46% copper over 4.8 metres). Hole KLUB19-549, located approximately 60 metres southwest of hole KLUB19-525, also confirmed the model and intersected 3.5 g/t gold and 0.88% copper over 3.3 metres at 96 metres depth, 6.6 g/t gold and 1.36% copper over 3.3 metres at 122 metres depth, 3.8 g/t gold and 0.20% copper over 3.4 metres at 141 metres depth and 5.7 g/t gold and 0.21% copper over 4.3 metres at 174 metres depth.
The Company is undertaking work at Upper Beaver that is expected to lead to an updated mineral resource estimate for the deposit at year-end 2020. An increase in the mineral resources in the shallow basalts would have a significant positive impact on project economics, and could provide added flexibility for a future underground operation.
The
Recent drilling investigated the western side of
Approximately 750 metres north of the C Zone is the Northland Zone area where recent drilling has identified the potential for near-surface, low-grade mineralization. Positive results were obtained in hole KLUC19-541 that intersected 1.4 g/t gold over 27.7 metres at 124 metres depth. Four hundred and fifty metres to the west, hole KLUC19-542 intersected 1.5 g/t gold over 16.2 metres at 294 metres depth. As a result of this drilling, the strike length of the Northland Zone's broad mineralized horizon has been extended to more than 650 metres (a 400-metre increase), with the depth increased by 120 metres to 294 metres; the Northland Zone remains open laterally and at depth.
The main
Work at
The 2019 program has led to the conversion of inferred mineral resources into an initial indicated mineral resource, and the replacement of those converted inferred mineral resources. As of
Agnico Eagle has identified
The 100% owned
The Amaruq mining operation uses the existing infrastructure at the Meadowbank mine (mining equipment, mill, tailings, camp and airstrip). Additional infrastructure has been built at the Amaruq site (truck shop/warehouse, fuel storage and an additional camp facility). Amaruq ore is transported using long haul off-road type trucks to the mill at the Meadowbank site for processing. The Amaruq satellite deposit achieved commercial production on
Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 709 | 700 | |||
Tonnes of ore milled per day | 7,707 | 7,609 | |||
Gold grade (g/t) | 2.95 | 2.80 | |||
Gold production (ounces) | 61,660 | 59,664 | |||
Production costs per tonne (C$) | $ | 143 | $ | 82 | |
Minesite costs per tonne (C$) | $ | 162 | $ | 83 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 1,243 | $ | 743 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 1,405 | $ | 734 |
Production costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period primarily due to increased costs associated with stripping and lower productivity. Production costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period primarily due to increased costs associated with stripping and lower productivity. Total cash costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above, partially offset by higher gold production.
Gold production in the fourth quarter of 2019 increased when compared to the prior-year period due to higher throughput and grades from Amaruq. The fourth quarter of 2019 was Amaruq's first full quarter of production. In addition. mining at the Portage pit at Meadowbank continued until October and ore from the stockpile at Meadowbank was also processed in the fourth quarter of 2019.
All metrics exclude pre-production tonnes and ounces | Year Ended | Year Ended | |||
Tonnes of ore milled (thousands of tonnes) | 2,381 | 3,262 | |||
Tonnes of ore milled per day | 7,731 | 8,937 | |||
Gold grade (g/t) | 2.23 | 2.56 | |||
Gold production (ounces) | 158,208 | 248,997 | |||
Production costs per tonne (C$) | $ | 101 | $ | 83 | |
Minesite costs per tonne (C$) | $ | 103 | $ | 82 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 1,143 | $ | 848 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 1,152 | $ | 814 |
Production costs per tonne for the full year 2019 increased when compared to the prior-year period primarily due to increased costs associated with stripping and lower productivity. Production costs per ounce for the full year 2019 increased when compared to the prior-year period due to the reasons described above and lower gold production. Pre-commercial production in 2019 was 35,281 ounces of gold.
Minesite costs per tonne for the full year 2019 increased when compared to the prior-year period primarily due to increased costs associated with stripping and lower productivity. Total cash costs per ounce for the full year 2019 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Gold production for the full year 2019 decreased when compared to the prior-year period as expected due to anticipated lower grades from the processing of the marginal ore stockpile at Meadowbank as the mine transitioned through the last few months of mining at the Meadowbank site.
The ramp up of production activities at Amaruq continued to improve but remained slower than expected in the fourth quarter of 2019. The ramp up was impacted by previous delays in pit dewatering, which resulted in a smaller than expected area for mining activities. This smaller "mining footprint" limited access to certain portions of the Whale Tail deposit, resulting in lower tonnage, lower grades and higher stripping costs. In addition, mining productivity was also affected by lower than expected equipment availability as well as a longer than expected transition between the new Amaruq site with regards to site installations and internal workforce movements into new positions.
Although it is still early in the year, good progress is being made on a number of fronts and the Company is focused on ramping up operating parameters to targeted levels by the middle of the second quarter of 2020. Key Amaruq operating parameters for the fourth quarter of 2019, 2020 year-to-date and 2020 targets are presented in the table below.
Operating Parameters | Fourth Quarter of 2019 | 2020 Year-to-date | 2020 Target |
Broken rock inventory (t) | 920,000 | 1,150,000 | 1,200,000 |
Daily drill (m/d) | 1,330 | 1,546 | 1,986 |
Total tonnes moved (tpd) | 71,105 | 78,491 | 99,415 |
Ore mined (tpd) | 5,430 | 5,783 | 8,645 |
Stripping ratio | 12.1 | 12.6 | 10.5 |
Long Haul ore moved (tpd) | 5,442 | 6,775 | 8,700 |
Mill tonnage (tpd) | 7,708 | 7,277 | 8,664 |
Amaruq Optimization Plan – Actions to Lower Costs and Improve Productivity
In order to optimize production and lower operating costs at Amaruq, an action plan has been put in place with a primary focus on improvements to water management, equipment availability, operational performance and wildlife management protocols.
Water management
De-watering of Whale Tail North was completed in
Equipment Availability (Maintenance)
Mining equipment availability and maintenance was affected by the transition of operations from the Meadowbank to the Amaruq site including the camp capacity, workforce movements, parts management and garage availability. At the end of the fourth quarter of 2019, most of the above issues have been addressed. All supervisory and management positions have been filled, along with additional workforce personnel to reduce backlogs.
The new warehouse was completed at Amaruq in
Operational Performance
Following the slower than planned ramp up in the fourth quarter of 2019, several initiatives were launched to improve mine operations performance. All mine management positions are now filled and improvement initiatives have been initiated to accelerate ramp up. In parallel to this, additional continuous improvement capacity is currently being added. Continuous improvement initiatives will continue focusing on drilling, loading and hauling (including long hauls) in order to increase the mining rate and reduce operating costs.
Wildlife Management
In the fourth quarter of 2019, stakeholder approval was sought for the concept of "project tolerant caribou" to minimize unnecessary road closures. The concept of "project tolerant caribou" was part of the Terrestrial Environment Management Plan submitted to the authorities as part of the permitting process. This concept was discussed and agreed to at the
The current long haul truck fleet totals 22 units. In addition, three contractor units are available as back up. As noted above, work will continue in 2020 to further improve mechanical and utilization availability and productivity.
Based on the proposed optimization plan, production and costs are forecast to improve sequentially quarter-over-quarter through 2020. The first quarter of 2020 is expected to be the weakest quarter for gold production. Average annual gold production at Amaruq over its seven year mine life is currently forecast to be approximately 443,000 ounces at an average total cash cost per ounce of
The permitting process to amend the Whale Tail project certificate (
First Underground Mineral Reserves at Whale Tail; Exploration Expands Mineralized Zones at Depth
As of
Amaruq's combined underground and open-pit indicated mineral resources (excluding Meadowbank) are approximately 1.1 million ounces of gold (9.8 million tonnes grading 3.40 g/t gold), while combined underground and open-pit inferred mineral resources (excluding Meadowbank) are 1.5 million ounces of gold (8.6 million tonnes grading 5.47 g/t gold) as of
During the fourth quarter of 2019, up to five drill rigs were in operation at Amaruq, including one rig operating underground since late June from the exploration ramp, which continues to be extended. At the end of the fourth quarter, the exploration ramp had reached a depth of 255 metres below surface and a ramp distance of 1,891 metres from the portal.
During the fourth quarter, exploration drilling consisted of two holes (1,275 metres) and conversion drilling consisted of 14 holes (4,766 metres). For all of 2019, exploration drilling totaled 52 holes (16,136 metres) and conversion drilling totaled 86 holes (35,593 metres). Results of the exploration program at the Amaruq project were last reported in the Company's news release dated
Selected recent intercepts from the Amaruq project are set out in the table below. The drill hole collars are located on the
Selected recent exploration and conversion drill results from the Whale Tail (WT) deposit and
Drill hole | Zone | Purpose | From (metres) | To | Depth of | Estimated | Gold grade | Gold grade |
AMQ-170-006A | WT | Conversion | 370.5 | 382.3 | 429 | 11.1 | 7.7 | 7.7 |
AMQ-170-008A | WT North | Conversion | 509.9 | 514.6 | 561 | 3.6 | 24.4 | 24.4 |
and | WT North | Conversion | 528.6 | 531.7 | 576 | 2.8 | 32.7 | 29.6 |
AMQ19-2064B | WT | Exploration | 660.1 | 664.8 | 544 | 4.3 | 12.7 | 12.7 |
AMQ19-2067B | Conversion | 714.0 | 724.0 | 607 | 8.2 | 12.3 | 12.3 | |
AMQ19-2069 | WT | Conversion | 445.5 | 469.8 | 349 | 23.9 | 9.5 | 9.5 |
including | 460.5 | 469.8 | 354 | 9.2 | 16.8 | 16.8 | ||
AMQ19-2075 | Conversion | 509.1 | 513.3 | 451 | 4.1 | 14.1 | 14.1 | |
and | Conversion | 533.0 | 541.5 | 473 | 8.0 | 10.5 | 10.5 | |
AMQ19-2080B | Conversion | 627.0 | 630.0 | 562 | 2.8 | 18.3 | 12.2 | |
and | Conversion | 649.0 | 653.0 | 582 | 3.5 | 62.1 | 29.4 | |
AMQ19-2087 | Conversion | 475.2 | 478.5 | 398 | 3.2 | 58.4 | 31.8 | |
AMQ19-2098A | WT North | Exploration | 785.9 | 795.7 | 660 | 6.9 | 6.7 | 6.7 |
AMQ19-2099 | Conversion | 630.7 | 634.9 | 549 | 3.6 | 64.3 | 24.7 | |
and | Conversion | 744.0 | 748.0 | 647 | 3.5 | 36.2 | 18.2 | |
AMQ19-2101 | WT | Conversion | 415.0 | 434.5 | 294 | 16.0 | 7.9 | 7.9 |
AMQ19-2101A | WT | Conversion | 425.5 | 441.7 | 301 | 14.7 | 10.9 | 10.9 |
AMQ19-2106 | Exploration | 633.5 | 637.0 | 537 | 3.2 | 16.8 | 9.6 | |
AMQ19-2107 | Conversion | 484.7 | 488.8 | 424 | 3.6 | 44.2 | 29.6 | |
AMQ19-2111B | Conversion | 593.3 | 596.6 | 517 | 2.9 | 70.6 | 41.9 | |
and | Conversion | 647.5 | 651.8 | 565 | 3.7 | 10.3 | 10.3 | |
and | Conversion | 749.5 | 753.5 | 656 | 3.6 | 11.4 | 11.4 | |
and | Conversion | 761.9 | 770.1 | 669 | 7.4 | 6.6 | 6.6 |
*Holes at the Whale Tail and Whale Tail North use a capping factor of 80 g/t gold. Holes at |
[Amaruq Project – Local Geology Map]
[Amaruq Project – Composite Longitudinal Section]
The Whale Tail deposit has been defined over at least 2.3 kilometres of strike length and from surface to 915 metres depth.
The conversion drilling program continues to demonstrate the extension of high-grade mineralization below the proposed pit outline, while the level of confidence in the geological model continues to improve.
Drilling into the central-eastern portion of Whale Tail continues to yield good grades over significant thicknesses, with highlights such as hole AMQ19-2101A intersecting 10.9 g/t gold over 14.7 metres at 301 metres depth.
Drilling in the Whale Tail ore shoot continues to yield positive results. Hole AMQ19-2069 intersected 16.8 g/t gold over 9.2 metres at 354 metres depth and hole AMQ-170-006A intersected 7.7 g/t gold over 11.1 metres at 429 metres depth, confirming the thickness and grade of the inflection in the ore shoot. Hole AMQ19-2064B intersected 12.7 g/t gold over 4.3 metres at 544 metres depth, demonstrating a potential for the development of new mineral resources down plunge in the ore shoot at depth.
Hole AMQ19-2106 was drilled into a gap between Whale Tail and the
Drilling from the exploration ramp into the
The Whale Tail deposit remains open to the west at depth, and to the east along a shallow plunge corresponding to the main ore shoot. A small portion of Amaruq's current mineral reserves and mineral resources are in the Whale Tail North structure.
In the western part of the
Recent drilling has helped to convert mineral resources in the central part of the
Toward the west of the
In 2020, at the Amaruq deposit at the
Another
Update on
At
The Company believes that it is possible that underground production could begin in 2022 and run through 2026. Initial annual gold production could be at a rate of approximately 50,000 to 60,000 ounces, and average approximately 110,000 ounces per year over the life of mine. Additional work is being carried out to evaluate the potential to increase mineral reserves and exploit a portion of the underground mineral resources at both
Located near
Three Months Ended | ||
Tonnes of ore milled (thousands of tonnes) | 326 | |
Tonnes of ore milled per day | 3,543 | |
Gold grade (g/t) | 7.99 | |
Gold production (ounces) | 81,607 | |
Production costs per tonne (C$) | $ | 241 |
Minesite costs per tonne (C$) | $ | 237 |
Production costs per ounce of gold produced ($ per ounce) | $ | 731 |
Total cash costs per ounce of gold produced ($ per ounce) | $ | 712 |
Production costs per tonne in the fourth quarter of 2019 were
All metrics exclude pre-production tonnes and ounces | Year Ended | |
Tonnes of ore milled (thousands of tonnes) | 773 | |
Tonnes of ore milled per day | 3,346 | |
Gold grade (g/t) | 7.60 | |
Gold production (ounces) | 191,113 | |
Production costs per tonne (C$) | $ | 244 |
Minesite costs per tonne (C$) | $ | 246 |
Production costs per ounce of gold produced ($ per ounce) | $ | 748 |
Total cash costs per ounce of gold produced ($ per ounce) | $ | 748 |
Production costs per tonne for the full year 2019 were
In the fourth quarter of 2019, lateral development, stope mucking and production drilling performance improved steadily, reaching budgeted levels in December. This performance resulted in approximately 3,983 tpd of ore being mined from the underground in
In 2019, the Meliadine mill demonstrated the ability to exceed nameplate capacity (3,750 tpd), with maximum daily throughput reaching up to 4,950 tpd. In the fourth quarter of 2019, the processing plant averaged approximately 3,543 tpd, with average recoveries of 94.6%. Bottlenecks at the front end of the crushing circuit and wear issues with the apron feeder hampered maximization of throughput in the mill in the fourth quarter of 2019.
Optimization Program – Primarily Focused On Improvements to the Process
In order to optimize production and lower operating costs at Meliadine, an action plan has been put in place with a primary focus on improvements to the process plant area, improving mining flexibility and water management, which includes:
- Apron feeder and chute re-engineering to correct wear issues (in progress)
- Filter press corrosion mitigation (nearing completion)
Paste backfill capacity optimization (in progress)- Underground maintenance continuous improvement, focus on trucks and scoops (in progress)
- Phase 2 expansion acceleration, development of Tiriganiaq open pits (in progress)
- Saline water line discharge to sea (evaluation underway)
The current Meliadine water management plan includes segregation of underground de-watering and surface runoff waters in specific ponds, treatment and year-around discharge to
While discharge to sea is currently done by trucks, the Company is investigating the possibility of installing a permanent waterline. This is expected to reduce costs and the environmental impact of trucking. Consultations are currently underway with local stakeholders and regulatory agencies and the permitting process for this change is expected to start in the second quarter of 2020.
Based on the optimization plan outlined above, production and costs are expected to improve at Meliadine in 2020 on a quarter over quarter basis. The first quarter of 2020 is expected to be the weakest quarter for gold production. Life of mine average annual gold production at Meliadine is currently forecast to be approximately 400,000 ounces at an average total cash cost per ounce of
Exploration drilling in 2019, outlined several new mineralized areas beneath the known mineral reserves and mineral resources. An additional 4,900 metres of drilling is planned in 2020 to follow-up on these new discoveries.
Staged Implementation of the Phase 2 Expansion Plan
The original Meliadine mine plan envisioned a 3,750 tpd mill with ore being sourced entirely from underground in years one to four. The mill capacity for Phase 2 was expected to increase to approximately 6,000 tpd, with ore being sourced from both underground and open pits starting in year five. The increased tonnage from the Phase 2 expansion was forecast to offset a planned decline in ore grade and keep production stable at approximately 400,000 ounces of gold per year.
The current Meliadine mill facility has demonstrated the ability to operate well in excess of the initial 3,750 tpd capacity (maximum daily rate in 2019 reached of 4,950 tpd). As a result, the Company has decided to accelerate the Phase 2 expansion by approximately two years to utilize this extra mill capacity. The initial source of open pit ore will be from two pits developed on the Tiriganiaq deposit. Development of the open pits is expected to provide additional mining flexibility and provide extra water storage capacity if needed.
The Phase 2 expansion will be carried out in three stages:
- An increase in processing from current levels to 4,600 tpd by the fourth quarter of 2020
- Increased processing rate of 5,000 tpd starting in the fourth quarter of 2021
- An expansion to 6,000 tpd starting in the fourth quarter of 2024
Stripping of the Tiriganiaq pits commenced in the fourth quarter of 2019, and is expected to be completed in the third quarter of 2020. The first ore from the Tiriganiaq pits is expected to be mined in the fourth quarter of 2020.
The Tiriganiaq open pits contain probable mineral reserves of 590,412 ounces of gold (3.8 million tonnes grading 4.89 g/t gold). These pits are expected to be mined in 2020 through 2027, with production gradually ramping up over the 8-year reserve life. The acceleration of the Phase 2 expansion results in slightly higher gold production (above Previous Guidance) in 2021 and 2022. Production from the Tiriganiaq pit in 2020 is forecast to be approximately 16,500 ounces, all of which will be considered pre-commercial.
Capital expenditures for stage 1 of the Phase 2 expansion in 2020 are estimated to be approximately
Agnico Eagle's Kittila mine in
Kittila – Record Ore Production in the Fourth Quarter of 2019 and Concrete Headframe Structure Completed
The 100% owned Kittila mine in northern
Three Months Ended | Three Months Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 468 | 462 | |||
Tonnes of ore milled per day | 5,087 | 5,022 | |||
Gold grade (g/t) | 4.14 | 3.93 | |||
Gold production (ounces) | 55,345 | 49,353 | |||
Production costs per tonne (EUR) | € | 74 | € | 70 | |
Minesite costs per tonne (EUR) | € | 79 | € | 73 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 694 | $ | 738 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 756 | $ | 787 |
Production costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period primarily due to higher contractor costs, partially offset by higher throughput levels and the timing of unsold inventory. Production costs per ounce in the fourth quarter of 2019 decreased when compared to the prior-year period due to higher gold production, partially offset by higher contractor costs.
Minesite costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce in the fourth quarter of 2019 decreased when compared to the prior-year period due to the reasons described above.
Gold production in the fourth quarter of 2019 increased when compared to the prior-year period due to strong quarterly mill throughput, higher grades from the
Year Ended | Year Ended | ||||
Tonnes of ore milled (thousands of tonnes) | 1,591 | 1,827 | |||
Tonnes of ore milled per day | 4,359 | 5,005 | |||
Gold grade (g/t) | 4.15 | 3.80 | |||
Gold production (ounces) | 186,101 | 188,979 | |||
Production costs per tonne (EUR) | € | 80 | € | 73 | |
Minesite costs per tonne (EUR) | € | 76 | € | 75 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 766 | $ | 831 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 736 | $ | 853 |
Production costs per tonne for the full year 2019 increased when compared to the prior-year period due to lower throughput levels as a result of the scheduled mill autoclave shutdown in the second quarter of 2019 and higher contractor costs, partially offset by lower re-handling costs. Production costs per ounce for the full year 2019 decreased when compared to the prior-year period primarily due to the higher grade ore mined and lower re-handling costs, partially offset by lower gold production and higher contractor costs.
Minesite costs per tonne for the full year 2019 were essentially the same when compared to the prior-year period. Total cash costs per ounce for the full year 2019 decreased when compared to the prior-year period due to the reasons mentioned above.
Gold production for the full year 2019 decreased when compared to the prior-year period due to lower throughput.
In
The expansion project is expected to increase the efficiency of the mine and maintain or decrease operating costs while providing access to the deeper mining horizons. In addition, the shaft is expected to provide access to the mineral resources located below 1,150 metres depth, where recent exploration programs have shown promising results.
The shaft and mill expansion are continuing to advance as scheduled. The Company anticipates that final mill tie-in work will occur during a planned four to five-week mill maintenance shutdown in the third quarter of 2020.
In the fourth quarter of 2019, Kittila expansion work continued on underground excavations for the new rock handling system and the construction of the headframe. The ultimate height of the headframe was reached on
As a result of higher than expected costs in shaft sinking and in the rock handling system, the Kittila expansion project is now forecast to cost between 160 to
In 2019, there was approximately
Continuing Confirmation of Main and Sisar zones in Roura-Rimpi Areas, and Extension of
Exploration at the Kittila mine is focused on extending the Main and Sisar zones northward, southward and at depth in the Roura and Rimpi areas to increase the mineral reserves in the large orebody. Sisar is subparallel to and 50 to 300 metres east of the main Kittila mineralization.
As of
During the fourth quarter of 2019, exploration and conversion drilling at the Kittila mine totaled 34 holes (10,842 metres). For the full year 2019, the mine-site exploration drilling totaled 63 holes (30,668 metres) and conversion drilling totaled 31 holes (10,842 metres).
Results from the exploration program at Kittila were last reported in the Company's news release dated
Selected recent drill results are set out in the table below, and drill hole collar coordinates are set out in a table in the Appendix. Pierce points for all these holes are shown on the Kittila Composite Longitudinal Section. All intercepts reported for the Kittila mine show uncapped gold grades over estimated true widths, based on a current geological interpretation that is being updated as new information becomes available with further drilling.
Selected recent exploration drill results from the
Drill hole | Zone | From | To | Depth of | Estimated | Gold grade |
RIE19-614 | Sisar Central | 296.0 | 304.3 | 1,170 | 5.7 | 5.8 |
ROD19-701 | Sisar Deep | 1,077.7 | 1,097.0 | 1,677 | 9.1 | 13.8 |
including | 1,085.0 | 1,093.0 | 1,678 | 3.8 | 22.7 | |
VUG19-510 | Main Rimpi | 85.0 | 93.0 | 722 | 7.9 | 4.9 |
and | Main Rimpi | 153.0 | 156.0 | 716 | 3.0 | 9.5 |
and | Main Rimpi | 161.0 | 168.0 | 715 | 6.9 | 4.5 |
VUG19-511 | Main Rimpi | 29.0 | 33.0 | 727 | 3.8 | 3.6 |
and | Main Rimpi | 52.0 | 56.0 | 725 | 3.8 | 6.7 |
and | Main Rimpi | 90.0 | 96.0 | 722 | 5.7 | 3.8 |
and | Sisar Top | 154.0 | 161.0 | 715 | 6.6 | 6.5 |
VUG19-513 | Sisar Top | 178.4 | 182.2 | 748 | 3.4 | 5.5 |
VUG19-516 | Main Rimpi | 156.0 | 168.0 | 682 | 11.9 | 7.3 |
VUG19-517 | Main Rimpi | 0.0 | 4.0 | 729 | 3.8 | 4.2 |
and | Sisar Top | 146.0 | 158.0 | 689 | 11.5 | 5.3 |
[
Deep conversion and exploration drilling of the Roura area is ongoing with one high-capacity drill rig. Hole ROD19-701 intersected 13.8 g/t gold over 9.1 metres at 1,677 metres depth (including 22.7 g/t gold over 3.8 metres at 1,678 metres depth) in the
Approximately 640 metres to the north, hole RIE19-614 intersected the
The conversion drilling campaign in the Rimpi area has been successful, with conversion drill holes confirming the expected grades and widths in the
The conversion drilling encountered many separate gold-mineralized lenses located close together. One example is hole VUG19-511, which intercepted four closely-spaced lenses: 3.6 g/t gold over 3.8 metres at 727 metres depth, 6.7 g/t gold over 3.8 metres at 725 metres depth, 3.8 g/t gold over 5.7 metres at 722 metres depth and 6.5 g/t gold over 6.6 metres at 715 metres depth. Intercepts have confirmed both the
In 2020, the Company expects to spend
The drilling includes 46,000 metres of capitalized conversion drilling at the mine as described above and 12,000 metres of expensed regional exploration drilling on targets beyond the current mineral resource area.
SOUTHERN BUSINESS REVIEW
Agnico Eagle's Southern Business operations are focused in Mexico. These operations have been a solid source of precious metals production (gold and silver) with stable operating costs and strong free cash flow since 2009.
The 100% owned
Three Months Ended | Three Months Ended | ||||
Tonnes of ore processed (thousands of tonnes) | 512 | 588 | |||
Tonnes of ore processed per day | 5,565 | 6,391 | |||
Gold grade (g/t) | 2.34 | 2.77 | |||
Gold production (ounces) | 35,822 | 49,170 | |||
Production costs per tonne | $ | 68 | $ | 60 | |
Minesite costs per tonne | $ | 70 | $ | 59 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 966 | $ | 716 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 758 | $ | 518 |
Production costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period primarily due to higher costs associated with underground mining and lower throughput, partially offset by the timing of inventory and lower re-handling costs. Production costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to higher costs associated with underground mining and lower gold production.
Minesite costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above and slightly lower by-product revenues.
Gold production in the fourth quarter of 2019 decreased when compared to the prior-year period due to lower grades and lower throughput.
At the
The Company is continuing to take measures to mitigate the challenging ground conditions at
- Decreasing the speed of the mining sequence
- Reducing stope size by 25%
- Potential to add additional stopes at the
Santo Nino underground - Potential to add higher grades at the Sinter deposit
Despite the lower gold production in the second half of 2019, the production guidance at the
Year Ended | Year Ended | ||||
Tonnes of ore processed (thousands of tonnes) | 2,007 | 2,218 | |||
Tonnes of ore processed per day | 5,499 | 6,077 | |||
Gold grade (g/t) | 2.55 | 2.69 | |||
Gold production (ounces) | 155,124 | 181,057 | |||
Production costs per tonne | $ | 65 | $ | 62 | |
Minesite costs per tonne | $ | 66 | $ | 61 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 839 | $ | 764 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 639 | $ | 548 |
Production costs per tonne for the full year 2019 increased when compared to the prior-year period due to lower throughput levels and higher costs associated with underground mining, partially offset by the timing of unsold inventory and lower re-handling costs. Production costs per ounce for the full year 2019 increased when compared to the prior-year period due to the reasons described above and lower gold production.
Minesite costs per tonne for the full year 2019 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce for the full year 2019 increased when compared to the prior-year period due to the reasons described above and lower by-product revenue.
Gold production for the full year 2019 decreased when compared to the prior-year period due to lower grades and lower throughput.
In 2019, the Company began testing samples from
Development of the Sinter and Cubiro satellite deposits at
Exploration Continues to Extend Reyna East Zone Along Strike and at Depth; Underground Exploration and Conversion Drilling Ongoing at Cubiro
Exploration at
The Cubiro deposit is located approximately 9.2 kilometres northwest of the
The Company drilled 57 holes (10,748 metres) on the
Results from the Reyna East and Cubiro zones were last reported in the Company's news release dated
Selected recent drill results from the
Selected recent exploration drill results from the
Drill Hole | Deposit | From | To | Depth of | Estimated | Gold grade | Gold grade | Silver grade | Silver grade | |
RE | 207.0 | 212.1 | 200 | 3.9 | 8.7 | 5.4 | 86 | 86 | ||
RE | 150.2 | 154.4 | 150 | 2.7 | 1.7 | 1.7 | 33 | 33 | ||
and | RE | 166.2 | 198.0 | 177 | 24.4 | 0.7 | 0.7 | 22 | 22 | |
including | 175.2 | 183.0 | 177 | 7.1 | 2.0 | 2.0 | 36 | 36 | ||
RE | 79.9 | 104.3 | 120 | 15.7 | 1.2 | 1.2 | 27 | 27 | ||
and | RE | 115.6 | 132.0 | 150 | 10.6 | 2.0 | 2.0 | 36 | 36 | |
RE | 19.0 | 22.9 | 26 | 3.3 | 1.6 | 1.6 | 11 | 11 | ||
and | RE | 51.0 | 65.0 | 74 | 11.5 | 1.2 | 1.2 | 12 | 12 | |
CBUG19-002 | Cubiro | 84.9 | 90.0 | 244 | 4.9 | 11.1 | 2.5 | 33 | 33 | |
CBUG19-006** | Cubiro | 154.9 | 173.5 | 129 | 13.1 | 2.4 | 2.4 | 65 | 64 | |
CBUG19-011 | Cubiro | 115.2 | 134.0 | 111 | 18.8 | 0.9 | 0.9 | 6 | 6 | |
including | 115.2 | 118.1 | 106 | 3.0 | 1.8 | 1.8 | 14 | 14 | ||
CBUG19-013 | Cubiro | 137.7 | 140.7 | 362 | 2.5 | 3.4 | 3.4 | 5 | 5 | |
CBUG19-019** | Cubiro | 181.7 | 201.0 | 210 | 18.8 | 2.5 | 2.0 | 24 | 22 |
Cut-off value 0.30 g/t gold, maximum 3.0 metres internal dilution. |
*Holes at the Reyna East Zone and the Cubiro satellite deposit use a capping factor of 10 g/t gold and 200 g/t silver. |
** CBUG19-006 and CBUG19-019 have not yet completed QA/QC; check assays are underway. |
[
The Reyna East Zone is located along the Reyna de Plata Fault, almost 1,500 metres to the east-southeast of the main
The Reyna East Zone contains low-sulphidation, epithermal vein-style mineralization, with gold and silver mineralization accompanied by green-clear-white quartz and calcite in veins, stockwork and breccia. There is a direct correlation between the occurrence of green quartz veinlets and the highest gold values.
The total amount drilled at this deposit in 2019 was 11,577 metres in 88 holes, focused on exploring the deepest parts of the structure within the preliminary pit design, as well as lateral extensions along strike. Recent step-out drilling has extended the Reyna East Zone to a total strike length of approximately 1,500 metres in a southeast direction, dipping steeply to the northeast. The zone extends from surface to a depth of approximately 220 metres, and appears to plunge shallowly to the west. It remains open along strike and at depth.
The highest grades and best widths have been encountered below the planned pit limit, including hole RP19-228, which intersected 5.4 g/t gold and 86 g/t silver over 3.9 metres at 200 metres depth. Approximately 64 metres to the southeast, hole RP19-233 intersected 1.7 g/t gold and 33 g/t silver over 2.7 metres at 150 metres depth and 0.7 g/t gold and 22 g/t silver over 24.2 metres at 177 metres depth, including 2.0 g/t gold and 36 g/t silver over 7.1 metres. Approximately 59 metres to the south, hole RP19-235 intersected 1.2 g/t gold and 27 g/t silver over 15.7 metres at 120 metres depth and 2.0 g/t gold and 36 g/t silver over 10.6 metres at 150 metres depth.
Step-out drilling to the east has located shallow mineralization, such as hole RP19-244 that intersected 1.6 g/t gold and 11 g/t silver over 3.3 metres at 26 metres depth and 1.2 g/t gold and 12 g/t silver over 11.5 metres at 74 metres depth. The hole is approximately 812 metres east-southeast of hole RP19-235.
The recent program has resulted in the initial indicated and initial inferred mineral resources estimated at Reyna East, part of the current mineral reserves and mineral resources at Reyna de Plata (below), which are included in the whole
Recent results show the potential of the Reyna East Zone to be extended at depth along a strike length of at least 500 metres, with the potential for underground mining scenarios. Additional drilling is required to determine the orientation and extent of the favourable mineralized vector. A $1.1-million program (5,000 metres) in 2020 will seek lateral extensions and the potential beneath the current limit of the mineral resources.
The Cubiro deposit is composed of multiple gold-silver-bearing white quartz-calcite veins (with barite and minor sulphides) up to 30 metres wide that strike northwest for almost 1,100 metres, with a steep dip to the southwest. The Cubiro deposit remains open to the northwest and at depth.
The drilling program for 2019 at Cubiro began in mid-year, with 19 drill holes (3,441 metres) completed during the fourth quarter. The total drilling at Cubiro in 2019 was 25 holes (4,539 metres). Drilling was from underground platforms at the southeastern limit of the ramp, targeting the main Cubiro Zone and the subparallel Cubiro North Zone. Results from the Cubiro drill campaign were last reported in the Company's news release dated October 23, 2019.
Recent drilling has confirmed high gold grades in the Cubiro North structure and has extended the structure 100 metres to the east and at depth. Cubiro North now extends over 150 metres along strike from surface to a depth of 350 metres. Hole CBUG19-006, drilled towards the northeast into the Cubiro North structure, intersected 2.4 g/t gold and 64 g/t silver over 13.1 metres at 129 metres depth. From a set-up 150 metres to the southeast, drilled northward, hole CBUG19-013 intersected 3.4 g/t gold and 5 g/t silver over 2.5 metres at 362 metres depth. The Cubiro North results show the potential for additional mineralization toward the east and down-dip in this zone, with the opportunity to increase the mineral resources.
Drilling of the main Cubiro Zone has begun; hole CBUG19-019 encountered a wider intercept yielding 2.0 g/t gold and 22 g/t silver over 18.8 metres at 210 metres depth. Approximately 15 metres to the east, the same wide, mineralized vein was exposed by a cross drift from the ramp (results are pending). The main Cubiro Zone will continue to be investigated during the 2020 exploration program.
The Cubiro deposit (including Cubiro North) has indicated mineral resources of 212,000 ounces of gold and 1.4 million ounces of silver (2.4 million tonnes grading 2.78 g/t gold and 18.38 g/t silver) and inferred mineral resources of 136,000 ounces of gold and 912,000 ounces of silver (1.4 million tonnes grading 2.59 g/t gold and 19.84 g/t silver), all at underground depth, declared as part of the total
Exploration will test the potential of Cubiro North to extend toward the east and down-dip. A $1.8-million program (10,000 metres) in 2020 will explore the current mineral resource limits, and the potential for a northwest strike extension. Successful mineral resource expansion and conversion at Cubiro would allow for the optimization of gold production at the
Creston Mascota – Production Extended, Guidance Increased
The Creston Mascota heap leach open pit mine has been operating as a satellite operation to the
Creston Mascota Mine – Operating Statistics | |||||
Three Months Ended | Three Months Ended | ||||
December 31, 2019 | December 31, 2018 | ||||
Tonnes of ore processed (thousands of tonnes) | 94 | 383 | |||
Tonnes of ore processed per day | 1,022 | 4,163 | |||
Gold grade (g/t) | 1.19 | 1.97 | |||
Gold production (ounces) | 6,919 | 11,452 | |||
Production costs per tonne | $ | 90 | $ | 24 | |
Minesite costs per tonne | $ | 95 | $ | 25 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 1,217 | $ | 792 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 1,073 | $ | 736 |
Production costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to lower tonnes processed and costs to facilitate the extension of the
Minesite costs per tonne in the fourth quarter of 2019 increased when compared to the prior-year period due to the reasons described above. Total cash costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to lower by-product revenue and the reasons described above.
Gold production in the fourth quarter of 2019 decreased when compared to the prior-year period due to lower tonnes processed and lower grades. Additional ore was identified for mining in the fourth quarter of 2019 and the first half of 2020. In order to facilitate the extension of the
Creston Mascota Mine – Operating Statistics | |||||
Year Ended | Year Ended | ||||
December 31, 2019 | December 31, 2018 | ||||
Tonnes of ore processed (thousands of tonnes) | 1,067 | 1,422 | |||
Tonnes of ore processed per day | 2,923 | 3,896 | |||
Gold grade (g/t) | 1.87 | 1.03 | |||
Gold production (ounces) | 48,380 | 40,180 | |||
Production costs per tonne | $ | 34 | $ | 26 | |
Minesite costs per tonne | $ | 33 | $ | 27 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 740 | $ | 928 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 554 | $ | 841 |
Production costs per tonne for the full year 2019 increased when compared to the prior-year period due to lower tonnes processed, the timing of unsold inventory and have also been affected by longer hauling distances. Production costs per ounce for the full year 2019 decreased when compared to the prior-year period due to higher gold production, partially offset by the timing of inventory sold and higher mining costs including longer hauling distances.
Minesite costs per tonne for the full year 2019 increased when compared to the prior-year period due to reasons described above. Total cash costs per ounce for the full year 2019 decreased when compared to the prior-year period due to the reasons described above.
Gold production for the full year 2019 increased when compared to the prior-year period primarily due to higher grades from ore from the
Mining operations are now expected to end in the first half of 2020, largely due to the discovery of additional ore outside of the mineral reserve model.
La India – Production Expected to Improve with the Commissioning of Agglomeration Units in the First Quarter of 2020; Chipriona Drilling Continues to Expand Sulphide Mineralization
The La India mine in
La | |||||
Three Months Ended | Three Months Ended | ||||
December 31, 2019 | December 31, 2018 | ||||
Tonnes of ore processed (thousands of tonnes) | 1,404 | 1,451 | |||
Tonnes of ore processed per day | 15,261 | 15,772 | |||
Gold grade (g/t) | 0.65 | 0.73 | |||
Gold production (ounces) | 20,616 | 26,308 | |||
Production costs per tonne | $ | 12 | $ | 12 | |
Minesite costs per tonne | $ | 13 | $ | 13 | |
Production costs per ounce of gold produced ($ per ounce): | $ | 812 | $ | 677 | |
Total cash costs per ounce of gold produced ($ per ounce): | $ | 892 | $ | 694 |
Production costs per tonne in the fourth quarter of 2019 were the same when compared to the prior-year period. Production costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to lower gold production and higher contractor and reagents costs.
Minesite costs per tonne in the fourth quarter of 2019 were the same when compared to the prior-year period. Total cash costs per ounce in the fourth quarter of 2019 increased when compared to the prior-year period due to lower production, higher contractor and reagents costs and lower by-product revenue.
Gold production in the fourth quarter of 2019 decreased when compared to the prior-year period due to lower tonnes processed and lower grades. In the fourth quarter of 2019, production continued to be affected by the high clay content of the ore, which impacted recoveries. To mitigate this effect in the short term, belt agglomeration (adding cement to the ore delivered by conveyor from the crusher to the heap leach pad) was initiated in the third quarter of 2019, adjustments were made to the stacking sequence and irrigation rates were decreased on the leach pads to help improve percolation.
During the second half of 2019, modifications were also made to the screens and transfer chutes on the conveyors. An automatic radial stacker was acquired to improve transfer of ore to the leach pads and two agglomeration units were ordered to improve percolation and are expected to be commissioned in March 2020.
Additional drilling is also being carried out to better define areas with higher clay content in the geological model. These improvements are expected to result in more normal production rates in 2020.
La | ||||||
Year Ended | Year Ended | |||||
December 31, 2019 | December 31, 2018 | |||||
Tonnes of ore milled (thousands of tonnes) | 5,402 | 6,128 | ||||
Tonnes of ore milled per day | 14,800 | 16,789 | ||||
Gold grade (g/t) | 0.68 | 0.72 | ||||
Gold production (ounces) | 82,190 | 101,357 | ||||
Production costs per tonne | $ | 12 | $ | 11 | ||
Minesite costs per tonne | $ | 13 | $ | 12 | ||
Production costs per ounce of gold produced ($ per ounce): | $ | 799 | $ | 682 | ||
Total cash costs per ounce of gold produced ($ per ounce): | $ | 823 | $ | 685 |
Production costs per tonne for the full year 2019 were essentially the same when compared to the prior-year period. Production costs per ounce for the full year 2019 increased when compared to the prior-year period primarily due to lower production and higher contractor and reagents costs.
Minesite costs per tonne for the full year 2019 were essentially the same when compared to the prior-year period. Total cash costs per ounce for the full year 2019 increased when compared to the prior-year period primarily due to lower production and higher contractor and reagents costs and lower by-product revenues.
Gold production for the full year 2019 decreased when compared to the prior-year period primarily due to lower tonnes processed as a result of the high clay content of the ore as described above.
La India Exploration Focused on the Chipriona Regional Target
The regional exploration program continues to return encouraging results at the Chipriona polymetallic sulphide target, located approximately one kilometre north of the North Zone at the La India mine. Results were last reported in the Company's news release dated July 24, 2019. In the second half of 2019, the regional exploration program included reconnaissance geological work in numerous prospects and drilling. A second phase of drilling was conducted between September and November consisting of 3,455 metres in 17 drill holes in order to increase the certainty of the geologic model and to collect geotechnical data. For the full-year 2019, Chipriona drilling totaled 50 holes (13,252 metres).
The positive drill results have led to a new indicated mineral resource and a 48% year-over-year increase of gold contained in inferred mineral resources at the Chipriona project, all at open pit depth. As of December 31, 2019, the Chipriona deposit has indicated mineral resources of 45,000 ounces of gold, 2.1 million ounces of silver, 359 tonnes of copper and 17,000 tonnes of zinc (1.3 million tonnes grading 1.11 g/t gold, 50.99 g/t silver, 0.03% copper and 1.36% zinc) and inferred mineral resources of 238,000 ounces of gold, 29.5 million ounces of silver, 15,400 tonnes of copper and 86,900 tonnes of zinc (10.7 million tonnes grading 0.69 g/t gold, 85.44 g/t silver, 0.14% copper and 0.81% zinc). For more details, refer to the Mineral Resources section of this news release.
Mine-site exploration at the La India property in the fourth quarter of 2019 included 25 holes (1,350 metres) at the Los Tubos Zone, as well as 20 holes (1,420 metres) of conversion drilling at the Main Zone. Drill results for the El Realito Zone were last reported in the Company's news release dated October 23, 2019; there was no drilling at this deposit in the fourth quarter. For the full-year 2019, La India mine-site exploration drilling was on budget, totaling 18,330 metres; the full-year drilling comprised 11,279 metres at
As of December 31, 2019, the El Realito Zone has probable mineral reserves of 106,000 ounces of gold and 485,000 ounces of silver (4.7 million tonnes grading 0.71 g/t gold and 3.24 g/t silver), measured mineral resources of 21,000 ounces of gold and 149,000 ounces of silver (1.2 million tonnes grading 0.55 g/t gold and 3.89 g/t silver), indicated mineral resources of 17,000 ounces of gold and 83,000 ounces of silver (0.7 million tonnes grading 0.71 g/t gold and 3.48 g/t silver) and inferred mineral resources of 4,000 ounces of gold and 24,000 ounces of silver (0.3 million tonnes grading 0.47 g/t gold and 2.64 g/t silver).
The budget for mine-site exploration in 2020 is $3.3 million for 17,000 metres of drilling.
Selected recent intercepts from the La India property are set out in the tables below. The drill hole collar coordinates are set out in a table in the Appendix of this news release. The collars are located on the La India Mine Local Geology Map. All intercepts reported for the La India property show uncapped and capped gold and silver grades over estimated true widths, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.
Recent exploration drill results from the Chipriona target at the La India property
Drill Hole | Vein | From | To | Depth of | Estimated | Gold grade | Gold | Silver grade | Silver |
CHP19-099 | new | 88.0 | 99.7 | 86 | 8.3 | 0.2 | 0.2 | 125 | 97 |
including | stockwork | 88.0 | 91.0 | 92 | 2.1 | 0.3 | 0.3 | 410 | 298 |
CHP19-103 | stockwork | 105.0 | 111.0 | 84 | 5.8 | 1.4 | 1.4 | 165 | 165 |
CHP19-104 | new | 21.0 | 25.5 | 14 | 4.3 | 2.7 | 2.7 | 95 | 95 |
CHP19-119 | CHPV | 121.0 | 145.0 | 83 | 21.8 | 1.4 | 1.1 | 55 | 55 |
including | 134.0 | 140.6 | 84 | 5.9 | 4.0 | 2.8 | 178 | 178 | |
CHP19-123 | CHPV - HQV | 129.0 | 166.0 | 107 | 34.8 | 1.6 | 1.6 | 95 | 95 |
including | 130.0 | 135.0 | 89 | 4.7 | 3.9 | 3.9 | 323 | 323 |
*Holes at Chipriona use a capping factor of 10 g/t gold and 700 g/t silver. |
Drill Hole | Vein | From | To | Depth of | Estimated | Copper | Zinc grade | Lead grade |
CHP19-099 | new | 88.0 | 99.7 | 86 | 8.3 | 0.4 | 0.1 | 0.0 |
including | stockwork | 88.0 | 91.0 | 92 | 2.1 | 1.0 | 0.4 | 0.0 |
CHP19-103 | stockwork | 105.0 | 111.0 | 84 | 5.8 | 0.0 | 0.4 | 0.2 |
CHP19-104 | new | 21.0 | 25.5 | 14 | 4.3 | 0.0 | 3.2 | 1.0 |
CHP19-119 | CHPV | 121.0 | 145.0 | 83 | 21.8 | 0.1 | 0.7 | 0.5 |
including | 134.0 | 140.6 | 84 | 5.9 | 0.3 | 2.2 | 1.5 | |
CHP19-123 | CHPV - HQV | 129.0 | 166.0 | 107 | 34.8 | 0.2 | 1.5 | 0.4 |
including | 130.0 | 135.0 | 89 | 4.7 | 0.7 | 6.4 | 1.3 |
*Holes at Chipriona use no capping factor for base metal grades. |
[La
Mineralization at Chipriona consists of what appears to be structurally controlled gold- and silver-rich veins, stringers, stockwork and breccias with significant zinc, lead and copper content in sulphides. Surface mapping and sampling have traced stacked structures within the Chipriona mineralized corridor, which ranges from tens of metres to a few hundred metres in width over a northwest strike length of at least 2,500 metres; 2,300 metres of this length has been confirmed through drill-testing. Mineralization has been intersected from surface to a depth of approximately 275 metres.
The project hosts a swarm of subparallel structural pathways that are favourable hosts for sulphide-based gold-silver mineralization with base metal credits. Significant mineralization has been intersected near surface over substantial widths; this suggests the potential for bulk mining lower-grade mineralization in stockwork zones that surround high-grade feeder zones. Currently, the mineralization is open towards the southeast and down dip.
The 2019 drill program has helped extend the mineralization by 500 metres along strike, increasing the understanding of vein geometry along the corridor and down dip.
Hole CHP19-123 confirmed grades and widths near the southeastern edge of the current mineral resources, intersecting 1.6 g/t gold, 95 g/t silver, 0.2% copper, 1.5% zinc and 0.4% lead over 34.8 metres at 107 metres depth, including 3.9 g/t gold, 323 g/t silver, 0.7% copper, 6.4% zinc and 1.3% lead over 4.7 metres. Almost 100 metres to the northwest, hole CHP19-119 intersected 1.1 g/t gold, 55 g/t silver, 0.7% zinc and 0.5% lead over 21.8 metres at 83 metres depth, including 2.8 g/t gold, 178 g/t silver, 2.2% zinc and 1.5% lead over 5.9 metres. In step-out drilling 200 metres to the northwest of this hole, hole CHP19-104 intersected a new splay vein, yielding 2.7 g/t gold, 95 g/t silver, 3.2% zinc and 1.0% lead over 4.3 metres at 14 metres depth.
In the northwest portion of the deposit, hole CHP19-099 intersected a new vein in the footwall of the main corridor, yielding 0.2 g/t gold, 97 g/t silver and 0.4% copper over 8.3 metres at 86 metres depth, including 0.3 g/t gold, 298 g/t silver and 1.0% copper over 2.1 metres.
Because of the prospective nature of the Chipriona deposit, a 6,000-metre drill program is planned for the first half of 2020 aimed at confirming and extending mineralization at depth in the main Chipriona corridor and splay veins. Another 4,000 metres of drilling is planned to test other nearby targets with characteristics similar to Chipriona. Preliminary metallurgical testing is continuing, to determine the potential for using a processing facility to treat Chipriona and other sulphide mineralization on the property.
Agnico Eagle acquired its 100% interest in the
The property was the site of historic heap-leach operations that produced approximately 565,000 ounces of gold at a grade of 2.1 g/t gold between 1991 and 2000. The project has substantial surface infrastructure including pre-stripped pits, haul roads, water sources and several buildings. Extensive drilling and studies in 2019 have led to initial indicated mineral resources of 104,000 ounces of gold (5.1 million tonnes grading 0.64 g/t gold) at open pit depth, and an increased inferred mineral resource of 1.2 million ounces of gold (22.1 million tonnes grading 1.64 g/t gold) mainly at open pit depth, as of December 31, 2019. More details are available in the Mineral Resources section of this news release.
Drill results for the
Selected recent drill results from the
Selected recent exploration drill results from the Trinidad Zone of the
Drill Hole | Deposit | From | To | Depth of | Estimated | Gold grade | Gold | Silver | Silver |
SGE19-301 | Amelia | 440.0 | 449.0 | 335 | 8.7 | 3.6 | 3.6 | 5 | 5 |
including | 440.0 | 444.0 | 333 | 3.9 | 6.7 | 6.7 | 10 | 10 | |
and | Amelia | 477.0 | 508.0 | 367 | 30.5 | 1.9 | 1.9 | 23 | 23 |
including | 492.0 | 499.0 | 369 | 6.8 | 3.3 | 3.3 | 75 | 75 | |
and | Amelia | 582.0 | 587.0 | 418 | 4.8 | 4.7 | 4.7 | 19 | 19 |
SGE19-312 | Espiritu | 343.0 | 347.5 | 211 | 4.0 | 3.3 | 3.3 | 731 | 224 |
SGE19-314 | Espiritu | 143.0 | 146.0 | 52 | 3.0 | 6.8 | 6.8 | 42 | 42 |
and | Espiritu | 188.0 | 191.0 | 74 | 3.0 | 4.5 | 4.5 | 1 | 1 |
SGE19-315 | Amelia | 408.0 | 414.0 | 337 | 5.2 | 4.5 | 4.5 | 5 | 5 |
and | Amelia | 427.0 | 437.0 | 355 | 8.7 | 2.4 | 2.4 | 7 | 7 |
including | 431.0 | 436.0 | 356 | 4.3 | 4.3 | 4.3 | 12 | 12 | |
and | Amelia | 467.0 | 475.1 | 386 | 6.9 | 2.3 | 2.3 | 9 | 9 |
and | Amelia | 488.0 | 512.0 | 410 | 20.4 | 2.9 | 2.9 | 38 | 38 |
including | 494.0 | 499.0 | 407 | 4.2 | 4.0 | 4.0 | 39 | 39 | |
SGE19-317 | Amelia | 454.0 | 463.0 | 366 | 8.5 | 3.0 | 3.0 | 11 | 11 |
and | Amelia | 467.0 | 484.0 | 376 | 16.1 | 2.2 | 2.2 | 5 | 5 |
including | 468.0 | 472.0 | 373 | 3.8 | 5.1 | 5.1 | 10 | 10 | |
and | Amelia | 490.0 | 499.5 | 389 | 9.1 | 9.4 | 9.4 | 32 | 32 |
including | 490.0 | 494.5 | 386 | 4.3 | 17.8 | 17.2 | 65 | 65 | |
SGE19-320 | Amelia | 789.0 | 793.0 | 677 | 3.8 | 47.1 | 13.4 | 583 | 436 |
and | Amelia | 808.8 | 812.0 | 688 | 3.0 | 4.2 | 4.2 | 10 | 10 |
SGE19-328 | Espiritu | 155.0 | 161.5 | 90 | 6.5 | 5.9 | 5.9 | 159 | 159 |
*Holes in the Trinidad Zone use a capping factor of 25 g/t gold and 1,000 g/t silver. The cut-off grade used for these intervals is 0.3 g/t gold in oxide material and 1.0 g/t gold in sulphide material. The minimum estimated true width is 3.0 metres. |
[Santa Gertrudis Project Local Geology Map]
[Santa Gertrudis Project – Amelia Deposit Longitudinal Section]
Recent geological mapping and surface sampling by the Company continues to find additional target areas in the Trinidad Zone.
Amelia is one of three deposits that comprise the Trinidad Zone and is the site of a previously operating open-pit gold mine. High-grade gold mineralization can be found in multiple parallel structures that commonly correspond to lithological contacts. The Amelia deposit has been extended 100 metres to an east-west strike length of approximately 900 metres and dips steeply to the north; it includes an ore shoot on the west side that plunges steeply to the east. Most of the open pit (oxide) material lies between surface and 100 metres depth, while the underground material reaches below the open pit mineral resources to a depth of approximately 350 metres, but recent drilling has intersected an extension of the mineralization at 677 metres below surface. The Amelia deposit remains open along strike and at depth. The Company has updated the inferred mineral resources at Amelia to 1.6 million tonnes grading 1.38 g/t gold (70,000 ounces of gold) at open pit depth, as well as an initial underground inferred mineral resource of 3.1 million tonnes grading 4.58 g/t gold (451,000 ounces of gold) in the high-grade sulphide material. The Amelia mineral resources are part of the
Recent drill results demonstrate that high-grade mineralization remains open along the plunge of the ore shoot, with hole SGE19-320 intersecting 13.4 g/t gold and 436 g/t silver over 3.8 metres at 677 metres depth and 4.2 g/t gold and 10 g/t silver over 3.0 metres at 688 metres depth; the latter intercept is approximately 200 metres below the nearest designed underground stope of the current mineral resources, and is the deepest intercept to date at the
There were shallower intercepts in the ore shoot as well. Approximately 174 metres to the southwest, hole SGE19-301 intersected three mineralized structures: 6.7 g/t gold over 3.9 metres at 333 metres depth, 1.9 g/t gold over 30.5 metres at 367 metres depth and 4.7 g/t gold over 4.8 metres at 418 metres depth. Approximately 130 metres farther to the southwest, hole SGE19-315 intersected four mineralized structures, including 4.5 g/t gold over 5.2 metres at 337 metres depth and 2.9 g/t gold over 20.4 metres at 410 metres depth (including 4.0 g/t gold over 4.2 metres). Approximately 154 metres to the northwest, hole SGE19-317 intersected three mineralized structures: 3.0 g/t gold over 8.5 metres at 366 metres depth, 5.1 g/t gold over 3.8 metres at 373 metres depth and 9.4 g/t gold over 9.1 metres at 389 metres depth (including 17.2 g/t gold over 4.3 metres). All results reported for the Amelia deposit, with the exception of drill hole SGE19-320, were designed to expand the high-grade mineralization at 80-metre step-outs; the resulting grades and widths are encouraging as they met or were better than expectations.
The Company plans to continue its aggressive exploration program at
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in
For further information regarding Agnico Eagle, contact Investor Relations at info@agnicoeagle.com or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite costs per tonne" and "adjusted net income" that are not standardized measures under IFRS. These data may not be comparable to data reported by other issuers. For a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS, other than adjusted net income, see "Reconciliation of Non-GAAP Financial Performance Measures" below.
The total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before deducting by-product metal revenues). The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. The total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis, except that no adjustment is made for by-product metal revenues. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Company's mining operations. Management also uses this measure to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash-generating capabilities at various gold prices.
All-in sustaining costs per ounce of gold produced on a by-product basis are calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options) and reclamation expenses, and then dividing by the number of ounces of gold produced. The all-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as the all-in sustaining costs per ounce of gold produced on a by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment is made for by-product metal revenues. All-in sustaining costs per ounce is used to show the full cost of gold production from current operations. Management is aware that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of total cash costs per ounce of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS.
The
Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income for unsold concentrate inventory production costs and other adjustments, and then dividing by tonnes of ore processed. As the total cash costs per ounce of gold produced can be affected by fluctuations in by‑product metal prices and foreign exchange rates, management believes that minesite costs per tonne provide additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS.
Adjusted net income is calculated by adjusting the net income as recorded in the consolidated statements of income for foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses and unrealized gains and losses on financial instruments. Management uses adjusted net income to evaluate the underlying operating performance of the Company and to assist with the planning and forecasting of future operating results. Management believes that adjusted net income is a useful measure of performance because foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses and unrealized gains and losses on financial instruments do not reflect the underlying operating performance of the Company and may not be indicative of future operating results.
Management also performs sensitivity analyses in order to quantify the effects of fluctuating foreign exchange rates and metal prices. This news release also contains information as to estimated future total cash costs per ounce, all-in sustaining costs per ounce and minesite costs per tonne. The estimates are based upon the total cash costs per ounce, all-in sustaining costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at February 13, 2020. Certain statements contained in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws and are referred to herein as "forward-looking statements". When used in this news release, the words "anticipate", "could", "estimate", "expect", "forecast", "future", "plan", "possible", "potential", "will" and similar expressions are intended to identify forward-looking statements. Such statements include, without limitation: the Company's forward-looking production guidance, including estimated ore grades, recovery rates, project timelines, drilling results, metal production, life of mine estimates, total cash costs per ounce, all-in sustaining costs per ounce, minesite costs per tonne, other expenses and cash flows; the estimated timing and conclusions of technical studies and evaluations; the methods by which ore will be extracted or processed; statements concerning the Company's expansion plans at Kittila, Meliadine Phase 2 and Amaruq Phase 2, and the Company's ramp up of activities at Meliadine and Amaruq, including the timing, funding, completion and commissioning thereof; statements concerning other expansion projects, recovery rates, mill throughput, optimization and projected exploration, including costs and other estimates upon which such projections are based; statements regarding timing and amounts of capital expenditures and other expenditures; estimates of future mineral reserves, mineral resources, mineral production, optimization efforts and sales; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of mineral reserves and mineral resources and the effect of drill results on future mineral reserves and mineral resources; statements regarding the Company's ability to obtain the necessary permits and authorizations in connection with its proposed or current exploration, development and mining operations and the anticipated timing thereof; statements regarding anticipated future exploration; the anticipated timing of events with respect to the Company's mine sites; statements regarding the sufficiency of the Company's cash resources; future dividend amounts and payment dates; and statements regarding anticipated trends with respect to the Company's operations, exploration and the funding thereof. Such statements reflect the Company's views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management's discussion and analysis ("MD&A") and the Company's Annual Information Form ("AIF") for the year ended December 31, 2018 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2018 ("Form 40-F") filed with the
Notes to Investors Regarding the Use of Mineral Resources
The mineral reserve and mineral resource estimates contained in this news release have been prepared in accordance with the Canadian securities regulatory authorities' (the "CSA") National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). These standards are similar to those used by SEC Industry Guide 7, as interpreted by the
For
As a result of the adoption of the SEC Modernization Rules, the
Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances. Investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is or will ever be economically or legally mineable.
The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained ounces and mineral reserves are not reported as a subset of mineral resources.
Scientific and Technical Data
The scientific and technical information contained in this news release relating to
The scientific and technical information relating to Agnico Eagle's mineral reserves and mineral resources contained herein (other than the Canadian Malartic mine) has been approved by
Detailed Mineral Reserves and Mineral Resources Data
MINERAL RESERVES | |||||||||||
As of December 31, 2019 | |||||||||||
OPERATION | PROVEN | PROBABLE | PROVEN & PROBABLE | ||||||||
GOLD | Ownership | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | |
LaRonde | Underground | 100% | 4,802 | 5.05 | 780 | 10,117 | 6.48 | 2,108 | 14,920 | 6.02 | 2,888 |
Underground | 100% | 3,307 | 2.13 | 226 | 5,980 | 2.39 | 460 | 9,287 | 2.30 | 686 | |
Canadian Malartic | Open Pit | 50% | 23,847 | 0.83 | 635 | 43,057 | 1.27 | 1,754 | 66,904 | 1.11 | 2,389 |
Underground | 100% | 272 | 1.85 | 16 | 20,709 | 1.61 | 1,072 | 20,980 | 1.61 | 1,088 | |
Akasaba West | Open Pit | 100% | - | - | - | 5,413 | 0.85 | 147 | 5,413 | 0.85 | 147 |
Amaruq | Open Pit | 100% | 172 | 1.83 | 10 | 22,600 | 3.76 | 2,731 | 22,773 | 3.74 | 2,741 |
Amaruq | Underground | 100% | - | - | - | 3,303 | 5.43 | 577 | 3,303 | 5.43 | 577 |
Amaruq Total | 172 | 1.83 | 10 | 25,903 | 3.97 | 3,308 | 26,075 | 3.96 | 3,318 | ||
Meadowbank | Open Pit | 100% | 37 | 2.24 | 3 | - | - | - | 37 | 2.24 | 3 |
Meadowbank Complex Total | 209 | 1.90 | 13 | 25,903 | 3.97 | 3,308 | 26,112 | 3.96 | 3,320 | ||
Meliadine | Open Pit | 100% | 144 | 3.19 | 15 | 5,671 | 4.72 | 861 | 5,816 | 4.69 | 876 |
Meliadine | Underground | 100% | 722 | 7.92 | 184 | 14,212 | 6.58 | 3,007 | 14,933 | 6.65 | 3,191 |
Meliadine Total | 866 | 7.14 | 199 | 19,883 | 6.05 | 3,868 | 20,749 | 6.10 | 4,067 | ||
Upper Beaver | Underground | 100% | - | - | - | 7,992 | 5.43 | 1,395 | 7,992 | 5.43 | 1,395 |
Kittila | Underground | 100% | 1,444 | 4.55 | 211 | 27,481 | 4.40 | 3,885 | 28,925 | 4.40 | 4,096 |
Open Pit | 100% | 60 | 1.55 | 3 | 3,550 | 0.97 | 111 | 3,611 | 0.98 | 114 | |
Underground | 100% | 3,274 | 2.56 | 270 | 7,573 | 2.35 | 573 | 10,847 | 2.42 | 843 | |
Pinos Altos Total | 3,334 | 2.55 | 273 | 11,124 | 1.91 | 684 | 14,457 | 2.06 | 957 | ||
Creston Mascota | Open Pit | 100% | 1 | 5.55 | 0 | 757 | 2.49 | 61 | 758 | 2.49 | 61 |
La India | Open Pit | 100% | 279 | 0.49 | 4 | 20,152 | 0.75 | 486 | 20,432 | 0.75 | 490 |
Totals | 38,361 | 1.91 | 2,357 | 198,569 | 3.01 | 19,227 | 236,930 | 2.83 | 21,585 | ||
SILVER | Ownership | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | |
LaRonde | Underground | 100% | 4,802 | 17.09 | 2,639 | 10,117 | 18.92 | 6,156 | 14,920 | 18.33 | 8,794 |
Open Pit | 100% | 60 | 39.07 | 76 | 3,550 | 26.09 | 2,978 | 3,611 | 26.31 | 3,054 | |
Underground | 100% | 3,274 | 59.33 | 6,244 | 7,573 | 62.29 | 15,166 | 10,847 | 61.40 | 21,411 | |
Pinos Altos Total | subtotal | 3,334 | 58.96 | 6,320 | 11,124 | 50.74 | 18,145 | 14,457 | 52.63 | 24,464 | |
Creston Mascota | Open Pit | 100% | 1 | 331.49 | 12 | 757 | 62.65 | 1,525 | 758 | 63.05 | 1,537 |
La India | Open Pit | 100% | 279 | 1.64 | 15 | 20,152 | 2.63 | 1,704 | 20,432 | 2.62 | 1,719 |
Totals | 8,417 | 33.20 | 8,985 | 42,151 | 20.31 | 27,530 | 50,567 | 22.46 | 36,515 | ||
COPPER | Ownership | 000 Tonnes | % | tonnes Cu | 000 Tonnes | % | tonnes Cu | 000 Tonnes | % | tonnes Cu | |
LaRonde | Underground | 100% | 4,802 | 0.22 | 10,461 | 10,117 | 0.28 | 28,690 | 14,920 | 0.26 | 39,151 |
Akasaba West | Open Pit | 100% | - | - | - | 5,413 | 0.48 | 25,891 | 5,413 | 0.48 | 25,891 |
Upper Beaver | Underground | 100% | - | - | - | 7,992 | 0.25 | 19,980 | 7,992 | 0.25 | 19,980 |
Totals | 4,802 | 0.22 | 10,461 | 23,522 | 0.32 | 74,561 | 28,325 | 0.30 | 85,022 | ||
ZINC | Ownership | 000 Tonnes | % | tonnes Zn | 000 Tonnes | % | tonnes Zn | 000 Tonnes | % | tonnes Zn | |
LaRonde | Underground | 100% | 4,802 | 0.59 | 28,112 | 10,117 | 0.90 | 91,524 | 14,920 | 0.80 | 119,636 |
Totals | 4,802 | 0.59 | 28,112 | 10,117 | 0.90 | 91,524 | 14,920 | 0.80 | 119,636 |
MINERAL RESOURCES | ||||||||||||||
As of December 31, 2019 | ||||||||||||||
OPERATION | MEASURED | INDICATED | MEASURED & INDICATED | INFERRED | ||||||||||
GOLD | Ownership | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | |
LaRonde | Underground | 100% | - | - | - | 4,436 | 3.42 | 488 | 4,436 | 3.42 | 488 | 5,940 | 4.47 | 854 |
Underground | 100% | - | - | - | 8,466 | 2.29 | 624 | 8,466 | 2.29 | 624 | 4,701 | 4.04 | 611 | |
Ellison | Underground | 100% | - | - | - | 722 | 3.04 | 71 | 722 | 3.04 | 71 | 5,466 | 2.62 | 461 |
Canadian Malartic | Open Pit | 50% | 177 | 0.53 | 3 | 468 | 0.59 | 9 | 644 | 0.57 | 12 | 745 | 0.94 | 23 |
Canadian Malartic | Underground | 50% | 1,843 | 1.51 | 89 | 6,252 | 1.64 | 330 | 8,096 | 1.61 | 420 | 1,609 | 1.35 | 70 |
Canadian | 2,020 | 1.42 | 92 | 6,720 | 1.57 | 339 | 8,740 | 1.54 | 431 | 2,354 | 1.22 | 92 | ||
Odyssey | Underground | 50% | - | - | - | 1,011 | 2.10 | 68 | 1,011 | 2.10 | 68 | 11,684 | 2.22 | 833 |
Underground | 50% | - | - | - | 4,962 | 2.18 | 347 | 4,962 | 2.18 | 347 | 39,382 | 2.05 | 2,596 | |
East Gouldie | Underground | 50% | - | - | - | - | - | - | - | - | - | 12,760 | 3.34 | 1,369 |
Underground | 100% | 12,360 | 1.86 | 739 | 26,838 | 1.47 | 1,272 | 39,197 | 1.60 | 2,011 | 25,180 | 1.50 | 1,212 | |
Akasaba West | Open Pit | 100% | - | - | - | 4,870 | 0.63 | 98 | 4,870 | 0.63 | 98 | - | - | - |
Zulapa | Open Pit | 100% | - | - | - | - | - | - | - | - | - | 391 | 3.14 | 39 |
Meadowbank | Open Pit | 100% | - | - | - | 1,145 | 2.46 | 90 | 1,145 | 2.46 | 90 | 4 | 2.06 | 0 |
Amaruq | Open Pit | 100% | - | - | - | 6,679 | 3.20 | 687 | 6,679 | 3.20 | 687 | 568 | 4.78 | 87 |
Amaruq | Underground | 100% | - | - | - | 3,102 | 3.84 | 383 | 3,102 | 3.84 | 383 | 8,073 | 5.52 | 1,432 |
Amaruq Total | - | - | - | 9,782 | 3.40 | 1,070 | 9,782 | 3.40 | 1,070 | 8,642 | 5.47 | 1,520 | ||
Meadowbank Complex Total | - | - | - | 10,927 | 3.30 | 1,160 | 10,927 | 3.30 | 1,160 | 8,645 | 5.47 | 1,520 | ||
Meliadine | Open Pit | 100% | - | - | - | 11,065 | 3.11 | 1,106 | 11,065 | 3.11 | 1,106 | 1,321 | 4.42 | 188 |
Meliadine | Underground | 100% | 72 | 4.00 | 9 | 13,583 | 3.85 | 1,683 | 13,655 | 3.85 | 1,692 | 13,290 | 5.72 | 2,443 |
Meliadine Total | 72 | 4.00 | 9 | 24,648 | 3.52 | 2,789 | 24,721 | 3.52 | 2,799 | 14,611 | 5.60 | 2,631 | ||
Open Pit | 100% | 165,662 | 0.70 | 3,724 | 42,754 | 0.57 | 777 | 208,416 | 0.67 | 4,501 | 501 | 0.74 | 12 | |
Upper Beaver | Underground | 100% | - | - | - | 3,636 | 3.45 | 403 | 3,636 | 3.45 | 403 | 8,688 | 5.07 | 1,416 |
AK Project | Underground | 100% | - | - | - | 1,268 | 6.51 | 265 | 1,268 | 6.51 | 265 | 2,373 | 5.32 | 406 |
Anoki-McBean | Underground | 100% | - | - | - | 1,868 | 5.33 | 320 | 1,868 | 5.33 | 320 | 2,526 | 4.70 | 382 |
Open Pit | 100% | - | - | - | 1,842 | 1.72 | 102 | 1,842 | 1.72 | 102 | 1,034 | 1.38 | 46 | |
Underground | 100% | - | - | - | 7,808 | 2.36 | 592 | 7,808 | 2.36 | 592 | 16,037 | 3.34 | 1,723 | |
Upper Canada Total | - | - | - | 9,650 | 2.23 | 693 | 9,650 | 2.23 | 693 | 17,071 | 3.22 | 1,768 | ||
Kittila | Open Pit | 100% | - | - | - | 229 | 3.41 | 25 | 229 | 3.41 | 25 | 373 | 3.89 | 47 |
Kittila | Underground | 100% | 2,895 | 2.54 | 237 | 15,022 | 2.60 | 1,258 | 17,916 | 2.59 | 1,495 | 13,447 | 3.90 | 1,688 |
Kittila Total | 2,895 | 2.54 | 237 | 15,251 | 2.62 | 1,283 | 18,145 | 2.60 | 1,520 | 13,820 | 3.90 | 1,735 | ||
Kuotko | Open Pit | 100% | - | - | - | - | - | - | - | - | - | 284 | 3.18 | 29 |
Kylmäkangas | Underground | 100% | - | - | - | - | - | - | - | - | - | 1,896 | 4.11 | 250 |
Barsele | Open Pit | 55% | - | - | - | 3,178 | 1.08 | 111 | 3,178 | 1.08 | 111 | 2,260 | 1.25 | 91 |
Barsele | Underground | 55% | - | - | - | 1,158 | 1.77 | 66 | 1,158 | 1.77 | 66 | 13,552 | 2.10 | 914 |
Barsele Total | - | - | - | 4,335 | 1.27 | 176 | 4,335 | 1.27 | 176 | 15,811 | 1.98 | 1,005 | ||
Open Pit | 100% | - | - | - | 2,728 | 0.92 | 80 | 2,728 | 0.92 | 80 | 981 | 0.92 | 29 | |
Underground | 100% | - | - | - | 16,853 | 1.80 | 977 | 16,853 | 1.80 | 977 | 6,051 | 2.09 | 407 | |
Pinos Altos Total | - | - | - | 19,581 | 1.68 | 1,057 | 19,581 | 1.68 | 1,057 | 7,032 | 1.93 | 435 | ||
Creston Mascota | Open Pit | 100% | - | - | - | 988 | 0.75 | 24 | 988 | 0.75 | 24 | 281 | 1.10 | 10 |
La India | Open Pit | 100% | 10,840 | 0.60 | 209 | 1,402 | 0.64 | 29 | 12,241 | 0.60 | 238 | 809 | 0.57 | 15 |
Tarachi | Open Pit | 100% | - | - | - | 22,665 | 0.40 | 294 | 22,665 | 0.40 | 294 | 6,476 | 0.33 | 68 |
Chipriona | Open Pit | 100% | - | - | - | 1,255 | 1.11 | 45 | 1,255 | 1.11 | 45 | 10,744 | 0.69 | 238 |
El Barqueño Gold | Open Pit | 100% | - | - | - | 8,176 | 1.21 | 318 | 8,176 | 1.21 | 318 | 8,326 | 1.21 | 325 |
Open Pit | 100% | - | - | - | 5,065 | 0.64 | 104 | 5,065 | 0.64 | 104 | 19,054 | 1.17 | 717 | |
Underground | 100% | - | - | - | - | - | - | - | - | - | 3,064 | 4.58 | 451 | |
Santa Gertrudis Total | - | - | - | 5,065 | 0.64 | 104 | 5,065 | 0.64 | 104 | 22,118 | 1.64 | 1,168 | ||
Totals | 193,848 | 0.80 | 5,010 | 231,491 | 1.75 | 13,045 | 425,340 | 1.32 | 18,055 | 249,869 | 2.67 | 21,480 | ||
SILVER | Ownership | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | 000 Tonnes | g/t | 000 | |
LaRonde | Underground | 100% | - | - | - | 4,436 | 27.33 | 3,897 | 4,436 | 27.33 | 3,897 | 5,940 | 14.95 | 2,855 |
Kylmäkangas | Underground | 100% | - | - | - | - | - | - | - | - | - | 1,896 | 31.11 | 1,896 |
Open Pit | 100% | - | - | - | 2,728 | 24.60 | 2,157 | 2,728 | 24.60 | 2,157 | 981 | 25.38 | 801 | |
Underground | 100% | - | - | - | 16,853 | 43.25 | 23,437 | 16,853 | 43.25 | 23,437 | 6,051 | 42.24 | 8,218 | |
Pinos Altos Total | - | - | - | 19,581 | 40.66 | 25,594 | 19,581 | 40.66 | 25,594 | 7,032 | 39.89 | 9,018 | ||
Creston Mascota | Open Pit | 100% | - | - | - | 988 | 7.88 | 250 | 988 | 7.88 | 250 | 281 | 5.05 | 46 |
La India | Open Pit | 100% | 10,840 | 3.24 | 1,130 | 1,402 | 3.17 | 143 | 12,241 | 3.23 | 1,273 | 809 | 3.56 | 93 |
Chipriona | Open Pit | 100% | - | - | - | 1,255 | 50.99 | 2,057 | 1,255 | 50.99 | 2,057 | 10,744 | 85.44 | 29,511 |
El Barqueño Silver | Open Pit | 100% | - | - | - | - | - | - | - | - | - | 3,998 | 129.49 | 16,646 |
El Barqueño Gold | Open Pit | 100% | - | - | - | 8,176 | 4.63 | 1,216 | 8,176 | 4.63 | 1,216 | 8,326 | 17.25 | 4,617 |
Totals | 10,840 | 3.24 | 1,130 | 35,836 | 28.78 | 33,157 | 46,676 | 22.85 | 34,287 | 39,025 | 51.55 | 64,682 | ||
COPPER | Ownership | 000 Tonnes | % | Tonnes Cu | 000 Tonnes | % | Tonnes Cu | 000 Tonnes | % | Tonnes Cu | 000 Tonnes | % | Tonnes Cu | |
LaRonde | Underground | 100% | - | - | - | 4,436 | 0.19 | 8,629 | 4,436 | 0.19 | 8,629 | 5,940 | 0.23 | 13,751 |
Akasaba West | Open Pit | 100% | - | - | - | 4,870 | 0.37 | 18,246 | 4,870 | 0.37 | 18,246 | - | - | - |
Upper Beaver | Underground | 100% | - | - | - | 3,636 | 0.14 | 5,135 | 3,636 | 0.14 | 5,135 | 8,688 | 0.20 | 17,284 |
Chipriona | Open Pit | 100% | - | - | - | 1,255 | 0.03 | 359 | 1,255 | 0.03 | 359 | 10,744 | 0.14 | 15,411 |
El Barqueño Gold | Open Pit | 100% | - | - | - | 8,176 | 0.18 | 15,028 | 8,176 | 0.18 | 15,028 | 8,326 | 0.22 | 18,210 |
Totals | - | - | - | 22,372 | 0.21 | 47,397 | 22,372 | 0.21 | 47,397 | 33,697 | 0.19 | 64,657 | ||
ZINC | Ownership | 000 Tonnes | % | Tonnes Zn | 000 Tonnes | % | Tonnes Zn | 000 Tonnes | % | Tonnes Zn | 000 Tonnes | % | Tonnes Zn | |
LaRonde | Underground | 100% | - | - | - | 4,436 | 1.15 | 51,161 | 4,436 | 1.15 | 51,161 | 5,940 | 0.64 | 38,066 |
Chipriona | Open Pit | 100% | - | - | - | 1,255 | 1.36 | 17,031 | 1,255 | 1.36 | 17,031 | 10,744 | 0.81 | 86,897 |
Totals | - | - | - | 5,691 | 1.20 | 68,192 | 5,691 | 1.20 | 68,192 | 16,684 | 0.75 | 124,963 |
Mineral reserves are not a subset of mineral resources. Tonnage amounts and contained metal amounts set out in this table have been rounded to the nearest thousand, so aggregate amounts may differ from column totals. Mineral reserves are in-situ, taking into account all mining recoveries, before mill or heap leach recoveries.
In prior periods, mineral reserves for all properties were typically estimated using historic three-year average metals prices and foreign exchange rates in accordance with the
Assumptions used for the December 31, 2019 mineral reserves estimate at all mines and advanced projects reported by the Company
Metal prices | Exchange rates | ||||||
Gold (US$/oz) | Silver (US$/oz) | Copper (US$/lb) | Zinc (US$/lb) | C$ per US$1.00 | Mexican | US$ per | |
Long-life operations and | $1,200 | $15.50 | $2.50 | $1.00 | $1.25 | MXP17.00 | $1.15 |
Short-life operations | $1.30 | MXP18.00 | Not applicable | ||||
Upper Beaver*, | $1,200 | Not applicable | $2.75 | Not applicable | $1.25 | Not applicable | Not applicable |
*The Upper Beaver project has a net smelter return (NSR) cut-off value of C$125/tonne |
**The Canadian Malartic mine uses a cut-off grade between 0.40 g/t and 0.43 g/t gold (depending on the deposit) |
NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The mineral reserves presented in this news release are separate from and not a portion of the mineral resources.
Modifying factors are considerations used to convert mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors, together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d)), as well as other information, can be found in Technical Reports, which may be found at www.sedar.com. Other important operating information can be found in the Company's AIF, MD&A and Form 40-F.
Property/Project name and location | Date of most recent Technical Report |
LaRonde, | March 23, 2005 |
Canadian | June 16, 2014 |
Kittila, Kuotko and Kylmakangas, | March 4, 2010 |
Meadowbank Gold Complex including the Amaruq Satellite Mine | February 14, 2018 |
October 14, 2012 | |
Meliadine, | February 11, 2015 |
July 2, 2013 | |
Upper Beaver ( | November 5, 2012 |
March 25, 2009 | |
La India, | August 31, 2012 |
Appendix
LaRonde 3 exploration drill collar coordinates
Drill collar coordinates* | ||||||
Drill hole ID | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
LR-290-104 | 5346922 | 689272 | -2,526 | 171 | -69 | 780 |
LR-290-107 | 5346922 | 689272 | -2,526 | 173 | -65 | 737 |
*Coordinate System UTM Nad 83 Zone 17 |
Drill collar coordinates* | ||||||
Drill hole | UTM North | UTM East | Elevation | Azimuth | Dip (degrees) | Length |
GD90-131 | 5331898 | 286752 | -593 | 207 | -24.0 | 210 |
GD90-139 | 5331895 | 286765 | -594 | 199 | -47.0 | 195 |
GD95-065 | 5331920 | 286711 | -638 | 236 | -27.0 | 210 |
GD100-172 | 5331752 | 286909 | -681 | 188 | -6.0 | 141 |
GD100-304 | 5331752 | 286909 | -681 | 239 | 27.0 | 176 |
GD100-318 | 5331752 | 286909 | -681 | 251 | 22.0 | 126 |
GD106-003 | 5331746 | 286799 | -754 | 004 | 27.0 | 33 |
GD106-033 | 5331690 | 286927 | -758 | 191 | 26.0 | 57 |
GD109-003 | 5331912 | 286761 | -789 | 219 | 6.0 | 132 |
GD110-245 | 5331795 | 287021 | -816 | 155 | -24.0 | 264 |
GD110-267 | 5331858 | 286816 | -792 | 255 | -8.0 | 150 |
GD120-299 | 5331827 | 286704 | -923 | 028 | -8.0 | 341 |
GD120-300 | 5331827 | 286704 | -924 | 028 | -14.0 | 364 |
GD120-313 | 5331729 | 286848 | -944 | 012 | -15.0 | 464 |
GD120-324 | 5331730 | 286846 | -944 | 004 | -14.0 | 445 |
GD120-325 | 5331730 | 286846 | -944 | 004 | -21.0 | 442 |
GD120-331 | 5331792 | 286755 | -930 | 024 | -10.0 | 368 |
GD120-333 | 5331792 | 286755 | -932 | 024 | -21.0 | 435 |
GD120-335 | 5331792 | 286755 | -930 | 027 | -11.0 | 377 |
GD125-003 | 5331685 | 286911 | -958 | 002 | -18.0 | 514 |
GD125-024 | 5331685 | 286911 | -957 | 008 | -25.0 | 527 |
*Coordinate System NAD83, UTM Zone 18N |
Drill Hole Collar Coordinates* | ||||||
Drill Hole ID | UTM North | UTM East | Elevation | Azimuth | Dip (degrees) | Length |
KLUB19-525 | 5335526 | 591826 | 283 | 150 | -53 | 357 |
KLUB19-530 | 5335629 | 591809 | 284 | 135 | -47 | 225 |
KLUB19-549 | 5335450 | 591804 | 295 | 128 | -67 | 353 |
KLUB19-552 | 5335866 | 591780 | 304 | 156 | -62 | 508 |
KLUB19-554 | 5335761 | 591456 | 305 | 134 | -59 | 420 |
KLUC19-535 | 5332680 | 586031 | 370 | 348 | -51 | 400 |
KLUC19-538 | 5331928 | 586182 | 328 | 300 | -60 | 739 |
KLUC19-541 | 5332670 | 585765 | 354 | 345 | -46 | 240 |
KLUC19-542 | 5332527 | 585333 | 353 | 347 | -44 | 477 |
KLUC19-546 | 5332296 | 585615 | 344 | 122 | -61 | 1,026 |
KLUC19-547 | 5333149 | 587071 | 333 | 137 | -64 | 846 |
KLUC19-551 | 5332832 | 586930 | 339 | 160 | -56 | 588 |
KLUC19-552 | 5332515 | 587757 | 338 | 341 | -57 | 600 |
KLUC19-553 | 5332873 | 586791 | 344 | 163 | -69 | 1,000 |
*Coordinate System NAD 1983 UTM Zone 17N |
Drill collar coordinates of selected drill holes at Kittila mine
Drill collar coordinates* | ||||||
Drill hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
RIE19-614 | 7538810 | 2558713 | -802 | 080 | -30 | 357 |
ROD19-701 | 7538198 | 2558629 | -955 | 091 | -80 | 1,118 |
VUG19-510 | 7539200 | 2558662 | -511 | 092 | 6 | 222 |
VUG19-511 | 7539200 | 2558662 | -511 | 106 | 6 | 266 |
VUG19-513 | 7539199 | 2558662 | -511 | 114 | -6 | 237 |
VUG19-516 | 7539200 | 2558662 | -510 | 093 | 21 | 233 |
VUG19-517 | 7539199 | 2558662 | -510 | 111 | 21 | 272 |
*Finnish Coordinate System KKJ Zone 2 |
Drill Collar Coordinates* | ||||||
Drill Hole | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
RP19-228 | 3131014 | 767364 | 2,136 | 200 | -70 | 249 |
RP19-233 | 3130970 | 767409 | 2,140 | 200 | -65 | 210 |
RP19-235 | 3130906 | 767413 | 2,153 | 200 | -70 | 153 |
RP19-244 | 3130427 | 768063 | 2,201 | 200 | -55 | 90 |
CBUG19-002 | 3136388 | 758841 | 1,230 | 050 | 5 | 141 |
CBUG19-006 | 3136388 | 758841 | 1,231 | 050 | 25 | 216 |
CBUG19-011 | 3136471 | 758685 | 1,217 | 255 | -15 | 171 |
CBUG19-013 | 3136293 | 758945 | 1,249 | 000 | -48 | 177 |
CBUG19-019 | 3136620 | 758530 | 1,214 | 235 | — | 255 |
*Coordinates of drill holes are in UTM NAD27 12N. |
La India property exploration drill hole collar coordinates
Drill Hole Collar Coordinates* | ||||||
Drill Hole ID | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
CHP19-099 | 3180731 | 706334 | 1,560 | 225 | -45 | 201 |
CHP19-103 | 3181303 | 706598 | 1,537 | 225 | -45 | 573 |
CHP19-104 | 3180342 | 707301 | 1,593 | 225 | -45 | 408 |
CHP19-119 | 3180164 | 707217 | 1,538 | 230 | -50 | 192 |
CHP19-123 | 3180099 | 707289 | 1,531 | 224 | -53 | 222 |
*Coordinates are in UTM NAD27 12N |
Collar coordinates of selected recent exploration drill holes at the
Drill collar coordinates* | ||||||
Drill Hole ID | UTM North | UTM East | Elevation | Azimuth | Dip | Length |
SGE19-301 | 3392761 | 542437 | 1,322 | 180 | -50 | 753 |
SGE19-312 | 3392426 | 542937 | 1,371 | 180 | -55 | 388 |
SGE19-314 | 3392085 | 542775 | 1,237 | 140 | -50 | 300 |
SGE19-315 | 3392679 | 542336 | 1,337 | 180 | -65 | 550 |
SGE19-317 | 3392722 | 542191 | 1,309 | 180 | -50 | 600 |
SGE19-320 | 3392929 | 542484 | 1,317 | 190 | -60 | 850 |
SGE19-328 | 3392189 | 542749 | 1,269 | 180 | -45 | 450 |
*Coordinate System UTM WGS84 12N Zone |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||||||
(thousands of United States dollars, except where noted) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Year Ended | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Operating margin(i) by mine: | |||||||||||
Northern Business | |||||||||||
LaRonde mine | $ | 111,865 | $ | 58,697 | $ | 337,192 | $ | 288,379 | |||
12,954 | 5,600 | 39,153 | 8,336 | ||||||||
Lapa mine | — | 3,868 | 2,033 | 11,927 | |||||||
31,200 | 19,318 | 114,487 | 73,893 | ||||||||
Meadowbank complex | 3,303 | 27,985 | 40,804 | 111,995 | |||||||
Meliadine mine | 61,970 | — | 127,326 | — | |||||||
Canadian Malartic mine(ii) | 73,015 | 60,346 | 258,139 | 248,765 | |||||||
Kittila mine | 39,666 | 22,516 | 117,806 | 80,252 | |||||||
Southern Business | |||||||||||
28,004 | 36,582 | 119,387 | 132,493 | ||||||||
Creston Mascota mine | 4,041 | 4,794 | 42,222 | 17,403 | |||||||
La India mine | 12,112 | 13,643 | 48,638 | 57,423 | |||||||
Total operating margin(i) | 378,130 | 253,349 | 1,247,187 | 1,030,866 | |||||||
Impairment (reversal) loss | (345,821) | 389,693 | (345,821) | 389,693 | |||||||
Amortization of property, plant and mine development | 150,319 | 137,235 | 546,057 | 553,933 | |||||||
Exploration, corporate and other | 69,687 | 113,694 | 308,209 | 346,292 | |||||||
Income (loss) before income and mining taxes | 503,945 | (387,273) | 738,742 | (259,052) | |||||||
Income and mining taxes | 172,250 | 6,383 | 265,576 | 67,649 | |||||||
Net income (loss) for the period | $ | 331,695 | $ | (393,656) | $ | 473,166 | $ | (326,701) | |||
Net income (loss) per share — basic (US$) | $ | 1.39 | $ | (1.68) | $ | 2.00 | $ | (1.40) | |||
Net income (loss) per share — diluted (US$) | $ | 1.38 | $ | (1.68) | $ | 1.99 | $ | (1.40) | |||
Cash flows: | |||||||||||
Cash provided by operating activities | $ | 257,468 | $ | 140,284 | $ | 881,692 | $ | 605,650 | |||
Cash used in investing activities | $ | (167,211) | $ | (336,376) | $ | (873,884) | $ | (1,204,368) | |||
Cash (used in) provided by financing activities | $ | (28,091) | $ | (18,099) | $ | 10,610 | $ | 274,099 | |||
Realized prices (US$): | |||||||||||
Gold (per ounce) | $ | 1,489 | $ | 1,235 | $ | 1,406 | $ | 1,266 | |||
Silver (per ounce) | $ | 17.55 | $ | 14.53 | $ | 16.38 | $ | 15.51 | |||
Zinc (per tonne) | $ | 2,398 | $ | 2,568 | $ | 2,607 | $ | 3,034 | |||
Copper (per tonne) | $ | 5,948 | $ | 6,126 | $ | 5,892 | $ | 6,543 |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
(Unaudited) | |||||||
Three Months Ended | Year Ended | ||||||
2019 | 2018 | 2019 | 2018 | ||||
Payable production(iii): | |||||||
Gold (ounces): | |||||||
Northern Business | |||||||
LaRonde mine | 97,470 | 81,022 | 343,154 | 343,686 | |||
15,234 | 10,196 | 59,830 | 18,620 | ||||
Lapa mine | — | 7,307 | 5 | 34,026 | |||
34,963 | 31,508 | 140,884 | 121,167 | ||||
Meadowbank complex | 61,660 | 59,664 | 193,489 | 248,997 | |||
Meliadine mine | 81,607 | — | 238,394 | — | |||
Canadian Malartic mine(ii) | 85,042 | 84,732 | 334,596 | 348,600 | |||
Kittila mine | 55,345 | 49,353 | 186,101 | 188,979 | |||
Southern Business | |||||||
35,822 | 49,170 | 155,124 | 181,057 | ||||
Creston Mascota mine | 6,919 | 11,452 | 48,380 | 40,180 | |||
La India mine | 20,616 | 26,308 | 82,190 | 101,357 | |||
Total gold (ounces) | 494,678 | 410,712 | 1,782,147 | 1,626,669 | |||
Silver (thousands of ounces): | |||||||
Northern Business | |||||||
LaRonde mine | 263 | 205 | 883 | 1,040 | |||
5 | 1 | 12 | 2 | ||||
Lapa mine | — | 1 | 1 | 2 | |||
1 | — | 2 | 1 | ||||
Meadowbank complex | 15 | 28 | 86 | 171 | |||
Meliadine mine | 7 | — | 18 | — | |||
Canadian Malartic mine(ii) | 114 | 104 | 421 | 437 | |||
Kittila mine | 3 | 4 | 13 | 13 | |||
Southern Business | |||||||
519 | 631 | 2,161 | 2,368 | ||||
Creston Mascota mine | 97 | 83 | 580 | 310 | |||
La India mine | 27 | 54 | 133 | 180 | |||
Total silver (thousands of ounces) | 1,051 | 1,111 | 4,310 | 4,524 | |||
Zinc (tonnes) | 2,445 | 3,168 | 13,161 | 7,864 | |||
Copper (tonnes) | 929 | 914 | 3,397 | 4,193 |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||||
(thousands of United States dollars, except where noted) | |||||||||
(Unaudited) | |||||||||
Three Months Ended | Year Ended | ||||||||
2019 | 2018 | 2019 | 2018 | ||||||
Payable metal sold: | |||||||||
Gold (ounces): | |||||||||
Northern Business | |||||||||
LaRonde mine | 104,197 | 81,831 | 360,698 | 364,816 | |||||
17,236 | 9,631 | 56,998 | 17,469 | ||||||
Lapa mine | — | 11,640 | 3,777 | 31,874 | |||||
36,357 | 31,748 | 141,385 | 120,621 | ||||||
Meadowbank complex | 53,710 | 58,610 | 191,396 | 253,014 | |||||
Meliadine mine | 81,328 | — | 213,290 | — | |||||
Canadian Malartic mine(ii)(iv) | 83,215 | 84,352 | 315,456 | 330,620 | |||||
Kittila mine | 52,595 | 47,993 | 184,440 | 187,871 | |||||
Southern Business | |||||||||
36,260 | 50,717 | 155,750 | 185,444 | ||||||
Creston Mascota mine | 7,310 | 10,409 | 50,605 | 39,592 | |||||
La India mine | 19,225 | 25,067 | 81,539 | 98,464 | |||||
Total gold (ounces) | 491,433 | 411,998 | 1,755,334 | 1,629,785 | |||||
Silver (thousands of ounces): | |||||||||
Northern Business | |||||||||
LaRonde mine | 264 | 207 | 883 | 1,043 | |||||
4 | — | 11 | 1 | ||||||
Lapa mine | — | 1 | 2 | 2 | |||||
1 | 1 | 2 | 2 | ||||||
Meadowbank complex | 15 | 26 | 84 | 170 | |||||
Meliadine mine | 15 | — | 16 | — | |||||
Canadian Malartic mine(ii)(iv) | 105 | 90 | 386 | 394 | |||||
Kittila mine | 5 | 4 | 14 | 13 | |||||
Southern Business | |||||||||
522 | 644 | 2,158 | 2,442 | ||||||
Creston Mascota mine | 100 | 75 | 575 | 301 | |||||
La India mine | 26 | 51 | 140 | 176 | |||||
Total silver (thousands of ounces): | 1,057 | 1,099 | 4,271 | 4,544 | |||||
Zinc (tonnes) | 1,632 | 1,896 | 12,292 | 8,523 | |||||
Copper (tonnes) | 945 | 926 | 3,390 | 4,195 |
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | ||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Total cash costs per ounce of gold produced — co-product basis (US$)(v): | ||||||||||||
Northern Business | ||||||||||||
LaRonde mine | $ | 586 | $ | 649 | $ | 660 | $ | 634 | ||||
776 | 642 | 725 | 733 | |||||||||
Lapa mine(vi) | — | 715 | — | 873 | ||||||||
640 | 624 | 584 | 646 | |||||||||
Meadowbank complex(vii) | 1,410 | 740 | 1,161 | 825 | ||||||||
Meliadine mine(viii) | 715 | — | 750 | — | ||||||||
Canadian Malartic mine(ii)(ix) | 655 | 581 | 626 | 579 | ||||||||
Kittila mine | 757 | 788 | 737 | 854 | ||||||||
Southern Business | ||||||||||||
1,004 | 707 | 867 | 749 | |||||||||
Creston Mascota mine | 1,300 | 844 | 754 | 961 | ||||||||
La India mine | 912 | 724 | 849 | 712 | ||||||||
Weighted average total cash costs per ounce of gold produced | $ | 805 | $ | 681 | $ | 745 | $ | 710 | ||||
Total cash costs per ounce of gold produced — by-product basis (US$)(v): | ||||||||||||
Northern Business | ||||||||||||
LaRonde mine | $ | 422 | $ | 441 | $ | 464 | $ | 445 | ||||
771 | 641 | 722 | 732 | |||||||||
Lapa mine (vi) | — | 713 | — | 872 | ||||||||
640 | 624 | 584 | 646 | |||||||||
Meadowbank complex(vii) | 1,405 | 734 | 1,152 | 814 | ||||||||
Meliadine mine(viii) | 712 | — | 748 | — | ||||||||
Canadian Malartic mine(ii)(ix) | 630 | 562 | 606 | 559 | ||||||||
Kittila mine | 756 | 787 | 736 | 853 | ||||||||
Southern Business | ||||||||||||
758 | 518 | 639 | 548 | |||||||||
Creston Mascota mine | 1,073 | 736 | 554 | 841 | ||||||||
La India mine | 892 | 694 | 823 | 685 | ||||||||
Weighted average total cash costs per ounce of gold produced | $ | 745 | $ | 608 | $ | 673 | $ | 637 |
Notes: | |||||||
(i) Operating margin is calculated as revenues from mining operations less production costs. | |||||||
(ii) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic mine. | |||||||
(iii) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that have been or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period. | |||||||
(iv) The Canadian Malartic mine's payable metal sold excludes the 5.0% net smelter return royalty transferred to Osisko Gold Royalties Ltd., in connection with the Company's acquisition of its 50% interest of the Canadian Malartic mine. | |||||||
(v) Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income for by-product metal revenues, inventory production costs, smelting, refining and marketing charges, other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges and other adjustments associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analysis in order to quantify the effects of fluctuating metal prices and exchange rates. | |||||||
(vi) The Lapa mine's cost calculations per ounce of gold produced for the year ended December 31, 2019 exclude 5 ounces of payable gold production, which were credited to the Company as a result of final refining reconciliation following the cessation of mining and processing operations at the Lapa mine. | |||||||
(vii) The Meadowbank Complex's cost calculations per ounce of gold produced for the year ended December 31, 2019 exclude 35,281 ounces of payable gold production which were produced prior to the achievement of commercial production at the Amaruq satellite deposit on September 30, 2019. | |||||||
(viii) The Meliadine mine's cost calculations per ounce of gold produced for the year ended December 31, 2019 exclude 47,281 ounces of payable gold production which were produced prior to the achievement of commercial production on May 14, 2019. | |||||||
(ix) The Canadian Malartic mine's cost calculations per ounce of gold produced for the three months and year ended December 31, 2019 exclude 3,137 ounces of payable gold production which were produced during these periods as commercial production at the Barnat deposit has not yet been achieved. |
CONSOLIDATED BALANCE SHEETS | |||||
(thousands of | |||||
(Unaudited) | |||||
As at | As at | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ | 321,897 | $ | 301,826 | |
Short-term investments | 6,005 | 6,080 | |||
Trade receivables | 8,320 | 10,055 | |||
Inventories | 580,068 | 494,150 | |||
Income taxes recoverable | 2,281 | 17,805 | |||
Equity securities | 86,252 | 76,532 | |||
Fair value of derivative financial instruments | 9,519 | 180 | |||
Other current assets | 179,218 | 165,824 | |||
Total current assets | 1,193,560 | 1,072,452 | |||
Non-current assets: | |||||
407,792 | 407,792 | ||||
Property, plant and mine development | 7,003,665 | 6,234,302 | |||
Other assets | 184,868 | 138,297 | |||
Total assets | $ | 8,789,885 | $ | 7,852,843 | |
LIABILITIES AND EQUITY | |||||
Current liabilities: | |||||
Accounts payable and accrued liabilities | $ | 345,572 | $ | 310,597 | |
Reclamation provision | 12,455 | 5,411 | |||
Interest payable | 16,752 | 16,531 | |||
Income taxes payable | 26,166 | 18,671 | |||
Lease obligations | 14,693 | 1,914 | |||
Current portion of long-term debt | 360,000 | — | |||
Fair value of derivative financial instruments | — | 8,325 | |||
Total current liabilities | 775,638 | 361,449 | |||
Non-current liabilities: | |||||
Long-term debt | 1,364,108 | 1,721,308 | |||
Lease obligations | 102,135 | — | |||
Reclamation provision | 427,346 | 380,747 | |||
Deferred income and mining tax liabilities | 948,142 | 796,708 | |||
Other liabilities | 61,002 | 42,619 | |||
Total liabilities | 3,678,371 | 3,302,831 | |||
EQUITY | |||||
Common shares: | |||||
Outstanding — 240,167,790 common shares issued, less 548,755 shares held in trust | 5,589,352 | 5,362,169 | |||
Stock options | 180,160 | 197,597 | |||
Contributed surplus | 37,254 | 37,254 | |||
Deficit | (647,330) | (988,913) | |||
Other reserves | (47,922) | (58,095) | |||
Total equity | 5,111,514 | 4,550,012 | |||
Total liabilities and equity | $ | 8,789,885 | $ | 7,852,843 |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||
(thousands of United States dollars, except per share amounts, IFRS basis) | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Year Ended | ||||||||||
December 31, | December 31, | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
REVENUES | |||||||||||
Revenues from mining operations | $ | 753,099 | $ | 537,821 | $ | 2,494,892 | $ | 2,191,221 | |||
COSTS, EXPENSES AND OTHER INCOME | |||||||||||
Production(i) | 374,969 | 284,472 | 1,247,705 | 1,160,355 | |||||||
Exploration and corporate development | 23,750 | 27,572 | 104,779 | 137,670 | |||||||
Amortization of property, plant and mine development | 150,319 | 137,235 | 546,057 | 553,933 | |||||||
General and administrative | 35,432 | 31,361 | 120,987 | 124,873 | |||||||
Finance costs | 26,285 | 25,544 | 105,082 | 96,567 | |||||||
(Gain) loss on derivative financial instruments | (6,828) | 11,074 | (17,124) | 6,065 | |||||||
Environmental remediation | 2,719 | 14,167 | 2,804 | 14,420 | |||||||
Impairment (reversal) loss | (345,821) | 389,693 | (345,821) | 389,693 | |||||||
Foreign currency translation (gain) loss | (140) | 2,657 | 4,850 | 1,991 | |||||||
Other (income) expenses | (11,531) | 1,319 | (13,169) | (35,294) | |||||||
Income (loss) before income and mining taxes | 503,945 | (387,273) | 738,742 | (259,052) | |||||||
Income and mining taxes expense | 172,250 | 6,383 | 265,576 | 67,649 | |||||||
Net income (loss) for the period | $ | 331,695 | $ | (393,656) | $ | 473,166 | $ | (326,701) | |||
Net income (loss) per share - basic | $ | 1.39 | $ | (1.68) | $ | 2.00 | $ | (1.40) | |||
Net income (loss) per share - diluted | $ | 1.38 | $ | (1.68) | $ | 1.99 | $ | (1.40) | |||
Weighted average number of common shares outstanding (in thousands): | |||||||||||
Basic | 239,274 | 234,096 | 236,934 | 233,251 | |||||||
Diluted | 240,952 | 234,096 | 238,230 | 233,251 | |||||||
Note: | |||||||||||||||
(i) Exclusive of amortization, which is shown separately. | |||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
(thousands of United States dollars, IFRS basis) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
OPERATING ACTIVITIES | |||||||||||||||
Net income (loss) for the period | $ | 331,695 | $ | (393,656) | $ | 473,166 | $ | (326,701) | |||||||
Add (deduct) items not affecting cash: | |||||||||||||||
Amortization of property, plant and mine development | 150,319 | 137,235 | 546,057 | 553,933 | |||||||||||
Deferred income and mining taxes | 124,491 | (22,089) | 152,595 | (30,961) | |||||||||||
Stock-based compensation | 14,994 | 11,870 | 54,261 | 50,658 | |||||||||||
Impairment (reversal) loss | (345,821) | 389,693 | (345,821) | 389,693 | |||||||||||
Foreign currency translation (gain) loss | (140) | 2,657 | 4,850 | 1,991 | |||||||||||
Other | (10,587) | 26,903 | (10,707) | 11,610 | |||||||||||
Adjustment for settlement of reclamation provision | (1,109) | (2,170) | (7,108) | (4,685) | |||||||||||
Changes in non-cash working capital balances: | |||||||||||||||
Trade receivables | 278 | (1,429) | 1,735 | 1,945 | |||||||||||
Income taxes | 23,406 | 25,359 | 22,223 | (2,291) | |||||||||||
Inventories | (10,362) | (13,418) | (91,436) | (52,316) | |||||||||||
Other current assets | 34,753 | 38,994 | (2,742) | (18,326) | |||||||||||
Accounts payable and accrued liabilities | (37,666) | (44,218) | 84,844 | 29,034 | |||||||||||
Interest payable | (16,783) | (15,447) | (225) | 2,066 | |||||||||||
Cash provided by operating activities | 257,468 | 140,284 | 881,692 | 605,650 | |||||||||||
INVESTING ACTIVITIES | |||||||||||||||
Additions to property, plant and mine development | (195,721) | (342,183) | (882,664) | (1,089,100) | |||||||||||
Acquisition | — | — | — | (162,479) | |||||||||||
Net proceeds from sale of property, plant and mine development | 829 | 163 | 3,692 | 35,246 | |||||||||||
Net proceeds from sale of short-term investments | 759 | 7,103 | 75 | 4,839 | |||||||||||
Net proceeds from sale of equity securities and other investments | 35,911 | 1,073 | 43,733 | 17,499 | |||||||||||
Purchases of equity securities and other investments | (3,767) | (2,510) | (33,498) | (11,163) | |||||||||||
Payments for financial assets at amortized cost | (5,222) | — | (5,222) | — | |||||||||||
(Increase) decrease in restricted cash | — | (22) | — | 790 | |||||||||||
Cash used in investing activities | (167,211) | (336,376) | (873,884) | (1,204,368) | |||||||||||
FINANCING ACTIVITIES | |||||||||||||||
Dividends paid | (34,187) | (20,821) | (105,408) | (83,961) | |||||||||||
Repayment of lease obligations | (4,941) | (820) | (15,451) | (3,382) | |||||||||||
Proceeds from long-term debt | — | 50,000 | 220,000 | 300,000 | |||||||||||
Repayment of long-term debt | — | (50,000) | (220,000) | (300,000) | |||||||||||
Notes issuance | — | — | — | 350,000 | |||||||||||
Long-term debt financing costs | — | (930) | — | (3,215) | |||||||||||
Repurchase of common shares for stock-based compensation plans | (274) | (3,559) | (24,669) | (30,062) | |||||||||||
Proceeds on exercise of stock options | 7,384 | 4,748 | 140,627 | 30,962 | |||||||||||
Common shares issued | 3,927 | 3,283 | 15,511 | 13,757 | |||||||||||
Cash (used in) provided by financing activities | (28,091) | (18,099) | 10,610 | 274,099 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | 1,312 | (4,238) | 1,653 | (6,533) | |||||||||||
Net increase (decrease) in cash and cash equivalents during the period | 63,478 | (218,429) | 20,071 | (331,152) | |||||||||||
Cash and cash equivalents, beginning of period | 258,419 | 520,255 | 301,826 | 632,978 | |||||||||||
Cash and cash equivalents, end of period | $ | 321,897 | $ | 301,826 | $ | 321,897 | $ | 301,826 | |||||||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||||||||
Interest paid | $ | 42,440 | $ | 42,743 | $ | 101,523 | $ | 91,079 | |||||||
Income and mining taxes paid | $ | 20,330 | $ | 9,615 | $ | 90,694 | $ | 106,568 |
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES | |||||||||||||||||||||||||||||||||
(thousands of United States dollars, except where noted) | |||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
Total Production Costs by Mine | Three Months Ended | Three Months Ended | Year Ended | Three Months Ended | |||||||||||||||||||||||||||||
(thousands of | |||||||||||||||||||||||||||||||||
LaRonde mine | $ | 49,957 | $ | 53,931 | $ | 215,012 | $ | 228,294 | |||||||||||||||||||||||||
12,804 | 6,326 | 41,212 | 12,991 | ||||||||||||||||||||||||||||||
Lapa mine | — | 10,541 | 2,844 | 27,870 | |||||||||||||||||||||||||||||
22,944 | 19,707 | 82,533 | 78,533 | ||||||||||||||||||||||||||||||
Meadowbank complex | 76,641 | 44,330 | 180,848 | 211,147 | |||||||||||||||||||||||||||||
Meliadine mine | 59,669 | — | 142,932 | — | |||||||||||||||||||||||||||||
Canadian Malartic mine(i) | 54,745 | 51,148 | 208,178 | 199,761 | |||||||||||||||||||||||||||||
Kittila mine | 38,437 | 36,415 | 142,517 | 157,032 | |||||||||||||||||||||||||||||
34,618 | 35,206 | 130,190 | 138,362 | ||||||||||||||||||||||||||||||
Creston Mascota mine | 8,419 | 9,066 | 35,801 | 37,270 | |||||||||||||||||||||||||||||
La India mine | 16,735 | 17,802 | 65,638 | 69,095 | |||||||||||||||||||||||||||||
Production costs per the consolidated | $ | 374,969 | $ | 284,472 | $ | 1,247,705 | $ | 1,160,355 | |||||||||||||||||||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced (ii) by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne(iii) by Mine | |||||||||||||||||||||||||||||||||
(thousands of | |||||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 97,470 | 81,022 | 343,154 | 343,686 | |||||||||||||||||||||||||||||
Production costs | $ | 49,957 | $ | 513 | $ | 53,931 | $ | 666 | $ | 215,012 | $ | 627 | $ | 228,294 | $ | 664 | |||||||||||||||||
Inventory and other adjustments(iv) | 7,195 | 73 | (1,332) | (17) | 11,595 | 33 | (10,475) | (30) | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 57,152 | $ | 586 | $ | 52,599 | $ | 649 | $ | 226,607 | $ | 660 | $ | 217,819 | $ | 634 | |||||||||||||||||
By-product metal revenues | (15,983) | (164) | (16,890) | (208) | (67,224) | (196) | (64,973) | (189) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 41,169 | $ | 422 | $ | 35,709 | $ | 441 | $ | 159,383 | $ | 464 | $ | 152,846 | $ | 445 | |||||||||||||||||
Three Months Ended | Three Months Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 505 | 515 | 2,057 | 2,108 | |||||||||||||||||||||||||||||
Production costs | $ | 49,957 | $ | 99 | $ | 53,931 | $ | 105 | $ | 215,012 | $ | 105 | $ | 228,294 | $ | 108 | |||||||||||||||||
Production costs (C$) | C$ | 66,032 | C$ | 131 | C$ | 70,291 | C$ | 136 | C$ | 285,423 | C$ | 139 | C$ | 293,094 | C$ | 139 | |||||||||||||||||
Inventory and other adjustments (C$)(v) | (1,543) | (3) | (10,206) | (19) | (27,629) | (14) | (41,568) | (20) | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | 64,489 | C$ | 128 | C$ | 60,085 | C$ | 117 | C$ | 257,794 | C$ | 125 | C$ | 251,526 | C$ | 119 | |||||||||||||||||
Three Months Ended | Three Months Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 15,234 | 10,196 | 59,830 | 18,620 | |||||||||||||||||||||||||||||
Production costs | $ | 12,804 | $ | 840 | $ | 6,326 | $ | 620 | $ | 41,212 | $ | 689 | $ | 12,991 | $ | 698 | |||||||||||||||||
Inventory and other adjustments(iv) | (977) | (64) | 224 | 22 | 2,169 | 36 | 656 | 35 | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 11,827 | $ | 776 | $ | 6,550 | $ | 642 | $ | 43,381 | $ | 725 | $ | 13,647 | $ | 733 | |||||||||||||||||
By-product metal revenues | (77) | (5) | (14) | (1) | (185) | (3) | (21) | (1) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 11,750 | $ | 771 | $ | 6,536 | $ | 641 | $ | 43,196 | $ | 722 | $ | 13,626 | $ | 732 | |||||||||||||||||
Three Months Ended | Three Months Ended | Year Ended | Year Ended | ||||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 227 | 115 | 870 | 225 | |||||||||||||||||||||||||||||
Production costs | $ | 12,804 | $ | 56 | $ | 6,326 | $ | 55 | $ | 41,212 | $ | 47 | $ | 12,991 | $ | 58 | |||||||||||||||||
Production costs (C$) | C$ | 16,901 | C$ | 74 | C$ | 8,346 | C$ | 73 | C$ | 54,644 | C$ | 63 | C$ | 17,028 | C$ | 76 | |||||||||||||||||
Inventory and other adjustments (C$)(v) | (1,338) | (5) | 270 | 2 | 2,855 | 3 | 945 | 4 | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | 15,563 | C$ | 69 | C$ | 8,616 | C$ | 75 | C$ | 57,499 | C$ | 66 | C$ | 17,973 | C$ | 80 | |||||||||||||||||
Lapa Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii)(vi) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | — | 7,307 | — | 34,026 | |||||||||||||||||||||||||||||
Production costs | $ | — | $ | — | $ | 10,541 | $ | 1,443 | $ | 2,844 | $ | — | $ | 27,870 | $ | 819 | |||||||||||||||||
Inventory and other adjustments(iv) | — | — | (5,317) | (728) | (2,844) | — | 1,843 | 54 | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | — | $ | — | $ | 5,224 | $ | 715 | $ | — | $ | — | $ | 29,713 | $ | 873 | |||||||||||||||||
By-product metal revenues | — | — | (13) | (2) | — | — | (26) | (1) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | — | $ | — | $ | 5,211 | $ | 713 | $ | — | $ | — | $ | 29,687 | $ | 872 | |||||||||||||||||
Lapa Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | — | 69 | — | 311 | |||||||||||||||||||||||||||||
Production costs | $ | — | $ | — | $ | 10,541 | $ | 153 | $ | 2,844 | $ | — | $ | 27,870 | $ | 90 | |||||||||||||||||
Production costs (C$) | C$ | — | C$ | — | C$ | 13,688 | C$ | 198 | C$ | 3,723 | C$ | — | C$ | 35,854 | C$ | 115 | |||||||||||||||||
Inventory and other adjustments (C$)(v) | — | — | (6,827) | (99) | (3,723) | — | 2,369 | 8 | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | — | C$ | — | C$ | 6,861 | C$ | 99 | C$ | — | C$ | — | C$ | 38,223 | C$ | 123 | |||||||||||||||||
Goldex Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 34,963 | 31,508 | 140,884 | 121,167 | |||||||||||||||||||||||||||||
Production costs | $ | 22,944 | $ | 656 | $ | 19,707 | $ | 625 | $ | 82,533 | $ | 586 | $ | 78,533 | $ | 648 | |||||||||||||||||
Inventory and other adjustments(iv) | (551) | (16) | (56) | (1) | (289) | (2) | (219) | (2) | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 22,393 | $ | 640 | $ | 19,651 | $ | 624 | $ | 82,244 | $ | 584 | $ | 78,314 | $ | 646 | |||||||||||||||||
By-product metal revenues | (12) | — | (6) | — | (33) | — | (25) | — | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 22,381 | $ | 640 | $ | 19,645 | $ | 624 | $ | 82,211 | $ | 584 | $ | 78,289 | $ | 646 | |||||||||||||||||
Goldex Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 684 | 711 | 2,785 | 2,625 | |||||||||||||||||||||||||||||
Production costs | $ | 22,944 | $ | 34 | $ | 19,707 | $ | 28 | $ | 82,533 | $ | 30 | $ | 78,533 | $ | 30 | |||||||||||||||||
Production costs (C$) | C$ | 30,240 | C$ | 44 | C$ | 26,075 | C$ | 37 | C$ | 109,373 | C$ | 39 | C$ | 101,787 | C$ | 39 | |||||||||||||||||
Inventory and other adjustments (C$)(v) | (700) | (1) | (181) | (1) | (245) | — | 44 | — | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | 29,540 | C$ | 43 | C$ | 25,894 | C$ | 36 | C$ | 109,128 | C$ | 39 | C$ | 101,831 | C$ | 39 | |||||||||||||||||
Meadowbank Complex | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii)(vii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 61,660 | 59,664 | 158,208 | 248,997 | |||||||||||||||||||||||||||||
Production costs | $ | 76,641 | $ | 1,243 | $ | 44,330 | $ | 743 | $ | 180,848 | $ | 1,143 | $ | 211,147 | $ | 848 | |||||||||||||||||
Inventory and other adjustments(iv) | 10,290 | 167 | (177) | (3) | 2,859 | 18 | (5,769) | (23) | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 86,931 | $ | 1,410 | $ | 44,153 | $ | 740 | $ | 183,707 | $ | 1,161 | $ | 205,378 | $ | 825 | |||||||||||||||||
By-product metal revenues | (273) | (5) | (371) | (6) | (1,391) | (9) | (2,685) | (11) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 86,658 | $ | 1,405 | $ | 43,782 | $ | 734 | $ | 182,316 | $ | 1,152 | $ | 202,693 | $ | 814 | |||||||||||||||||
Meadowbank Complex | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii)(viii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 709 | 700 | 2,381 | 3,262 | |||||||||||||||||||||||||||||
Production costs | $ | 76,641 | $ | 108 | $ | 44,330 | $ | 63 | $ | 180,848 | $ | 76 | $ | 211,147 | $ | 65 | |||||||||||||||||
Production costs (C$) | C$ | 101,041 | C$ | 143 | C$ | 57,511 | C$ | 82 | C$ | 240,014 | C$ | 101 | C$ | 272,140 | C$ | 83 | |||||||||||||||||
Inventory and other adjustments (C$)(v) | 13,990 | 19 | 676 | 1 | 6,292 | 2 | (4,477) | (1) | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | 115,031 | C$ | 162 | C$ | 58,187 | C$ | 83 | C$ | 246,306 | C$ | 103 | C$ | 267,663 | C$ | 82 | |||||||||||||||||
Meliadine Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii)(ix) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 81,607 | — | 191,113 | — | |||||||||||||||||||||||||||||
Production costs | $ | 59,669 | $ | 731 | $ | — | $ | — | $ | 142,932 | $ | 748 | $ | — | $ | — | |||||||||||||||||
Inventory and other adjustments(iv) | (1,290) | (16) | — | — | 389 | 2 | — | — | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 58,379 | $ | 715 | $ | — | $ | — | $ | 143,321 | $ | 750 | $ | — | $ | — | |||||||||||||||||
By-product metal revenues | (268) | (3) | — | — | (286) | (2) | — | — | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 58,111 | $ | 712 | $ | — | $ | — | $ | 143,035 | $ | 748 | $ | — | $ | — | |||||||||||||||||
Meliadine Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii)* | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 326 | — | 773 | — | |||||||||||||||||||||||||||||
Production costs | $ | 59,669 | $ | 183 | $ | — | $ | — | $ | 142,932 | $ | 185 | $ | — | $ | — | |||||||||||||||||
Production costs (C$) | C$ | 78,595 | C$ | 241 | C$ | — | C$ | — | C$ | 188,680 | C$ | 244 | C$ | — | C$ | — | |||||||||||||||||
Inventory and other adjustments (C$)(v) | (1,350) | (4) | — | — | 1,409 | 2 | — | — | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | 77,245 | C$ | 237 | C$ | — | C$ | — | C$ | 190,089 | C$ | 246 | C$ | — | C$ | — | |||||||||||||||||
Canadian | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii)(xi) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 81,905 | 84,732 | 331,459 | 348,600 | |||||||||||||||||||||||||||||
Production costs | $ | 54,745 | $ | 668 | $ | 51,148 | $ | 604 | $ | 208,178 | $ | 628 | $ | 199,761 | $ | 573 | |||||||||||||||||
Inventory and other adjustments(iv) | (1,070) | (13) | (1,899) | (23) | (723) | (2) | 1,947 | 6 | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 53,675 | $ | 655 | $ | 49,249 | $ | 581 | $ | 207,455 | $ | 626 | $ | 201,708 | $ | 579 | |||||||||||||||||
By-product metal revenues | (2,038) | (25) | (1,608) | (19) | (6,711) | (20) | (6,806) | (20) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 51,637 | $ | 630 | $ | 47,641 | $ | 562 | $ | 200,744 | $ | 606 | $ | 194,902 | $ | 559 | |||||||||||||||||
Canadian | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii)(xii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 2,587 | 2,542 | 10,391 | 10,242 | |||||||||||||||||||||||||||||
Production costs | $ | 54,745 | $ | 21 | $ | 51,148 | $ | 20 | $ | 208,178 | $ | 20 | $ | 199,761 | $ | 20 | |||||||||||||||||
Production costs (C$) | C$ | 70,604 | C$ | 27 | C$ | 67,097 | C$ | 26 | C$ | 274,786 | C$ | 26 | C$ | 258,291 | C$ | 25 | |||||||||||||||||
Inventory and other adjustments (C$)(v) | (3,132) | (1) | (2,240) | (1) | (2,201) | — | 2,972 | — | |||||||||||||||||||||||||
Minesite operating costs (C$) | C$ | 67,472 | C$ | 26 | C$ | 64,857 | C$ | 25 | C$ | 272,585 | C$ | 26 | C$ | 261,263 | C$ | 25 | |||||||||||||||||
Kittila Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 55,345 | 49,353 | 186,101 | 188,979 | |||||||||||||||||||||||||||||
Production costs | $ | 38,437 | $ | 694 | $ | 36,415 | $ | 738 | $ | 142,517 | $ | 766 | $ | 157,032 | $ | 831 | |||||||||||||||||
Inventory and other adjustments(iv) | 3,480 | 63 | 2,464 | 50 | (5,314) | (29) | 4,374 | 23 | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 41,917 | $ | 757 | $ | 38,879 | $ | 788 | $ | 137,203 | $ | 737 | $ | 161,406 | $ | 854 | |||||||||||||||||
By-product metal revenues | (89) | (1) | (32) | (1) | (238) | (1) | (186) | (1) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 41,828 | $ | 756 | $ | 38,847 | $ | 787 | $ | 136,965 | $ | 736 | $ | 161,220 | $ | 853 | |||||||||||||||||
Kittila Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore milled (thousands of tonnes) | 468 | 462 | 1,591 | 1,827 | |||||||||||||||||||||||||||||
Production costs | $ | 38,437 | $ | 82 | $ | 36,415 | $ | 79 | $ | 142,517 | $ | 90 | $ | 157,032 | $ | 86 | |||||||||||||||||
Production costs (€) | € | 34,598 | € | 74 | € | 32,337 | € | 70 | € | 127,355 | € | 80 | € | 133,817 | € | 73 | |||||||||||||||||
Inventory and other adjustments (€)(v) | 2,547 | 5 | 1,590 | 3 | (5,882) | (4) | 2,545 | 2 | |||||||||||||||||||||||||
Minesite operating costs (€) | € | 37,145 | € | 79 | € | 33,927 | € | 73 | € | 121,473 | € | 76 | € | 136,362 | € | 75 | |||||||||||||||||
Pinos Altos Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 35,822 | 49,170 | 155,124 | 181,057 | |||||||||||||||||||||||||||||
Production costs | $ | 34,618 | $ | 966 | $ | 35,206 | $ | 716 | $ | 130,190 | $ | 839 | $ | 138,362 | $ | 764 | |||||||||||||||||
Inventory and other adjustments(iv) | 1,344 | 38 | (432) | (9) | 4,229 | 28 | (2,767) | (15) | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 35,962 | $ | 1,004 | $ | 34,774 | $ | 707 | $ | 134,419 | $ | 867 | $ | 135,595 | $ | 749 | |||||||||||||||||
By-product metal revenues | (8,822) | (246) | (9,282) | (189) | (35,322) | (228) | (36,301) | (201) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 27,140 | $ | 758 | $ | 25,492 | $ | 518 | $ | 99,097 | $ | 639 | $ | 99,294 | $ | 548 | |||||||||||||||||
Pinos Altos Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore processed (thousands of tonnes) | 512 | 588 | 2,007 | 2,218 | |||||||||||||||||||||||||||||
Production costs | $ | 34,618 | $ | 68 | $ | 35,206 | $ | 60 | $ | 130,190 | $ | 65 | $ | 138,362 | $ | 62 | |||||||||||||||||
Inventory and other adjustments(v) | 993 | 2 | (486) | (1) | 3,074 | 1 | (3,061) | (1) | |||||||||||||||||||||||||
Minesite operating costs | $ | 35,611 | $ | 70 | $ | 34,720 | $ | 59 | $ | 133,264 | $ | 66 | $ | 135,301 | $ | 61 | |||||||||||||||||
Creston Mascota Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 6,919 | 11,452 | 48,380 | 40,180 | |||||||||||||||||||||||||||||
Production costs | $ | 8,419 | $ | 1,217 | $ | 9,066 | $ | 792 | $ | 35,801 | $ | 740 | $ | 37,270 | $ | 928 | |||||||||||||||||
Inventory and other adjustments(iv) | 578 | 83 | 596 | 52 | 678 | 14 | 1,326 | 33 | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 8,997 | $ | 1,300 | $ | 9,662 | $ | 844 | $ | 36,479 | $ | 754 | $ | 38,596 | $ | 961 | |||||||||||||||||
By-product metal revenues | (1,574) | (227) | (1,237) | (108) | (9,671) | (200) | (4,818) | (120) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 7,423 | $ | 1,073 | $ | 8,425 | $ | 736 | $ | 26,808 | $ | 554 | $ | 33,778 | $ | 841 | |||||||||||||||||
Creston Mascota Mine | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore processed (thousands of tonnes) | 94 | 383 | 1,067 | 1,422 | |||||||||||||||||||||||||||||
Production costs | $ | 8,419 | $ | 90 | $ | 9,066 | $ | 24 | $ | 35,801 | $ | 34 | $ | 37,270 | $ | 26 | |||||||||||||||||
Inventory and other adjustments(v) | 469 | 5 | 481 | 1 | (122) | (1) | 853 | 1 | |||||||||||||||||||||||||
Minesite operating costs | $ | 8,888 | $ | 95 | $ | 9,547 | $ | 25 | $ | 35,679 | $ | 33 | $ | 38,123 | $ | 27 | |||||||||||||||||
La | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Ounce of Gold Produced(ii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | (thousands) | ($ per ounce ) | ||||||||||||||||||||||||||
Gold production (ounces) | 20,616 | 26,308 | 82,190 | 101,357 | |||||||||||||||||||||||||||||
Production costs | $ | 16,735 | $ | 812 | $ | 17,802 | $ | 677 | $ | 65,638 | $ | 799 | $ | 69,095 | $ | 682 | |||||||||||||||||
Inventory and other adjustments(iv) | 2,060 | 100 | 1,242 | 47 | 4,166 | 50 | 3,084 | 30 | |||||||||||||||||||||||||
Cash operating costs (co-product basis) | $ | 18,795 | $ | 912 | $ | 19,044 | $ | 724 | $ | 69,804 | $ | 849 | $ | 72,179 | $ | 712 | |||||||||||||||||
By-product metal revenues | (413) | (20) | (795) | (30) | (2,184) | (26) | (2,777) | (27) | |||||||||||||||||||||||||
Cash operating costs (by-product basis) | $ | 18,382 | $ | 892 | $ | 18,249 | $ | 694 | $ | 67,620 | $ | 823 | $ | 69,402 | $ | 685 | |||||||||||||||||
La | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||||||||||||||||||||||||
Per Tonne(iii) | December 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
(thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | (thousands) | ($ per tonne ) | ||||||||||||||||||||||||||
Tonnes of ore processed (thousands of tonnes) | 1,404 | 1,451 | 5,402 | 6,128 | |||||||||||||||||||||||||||||
Production costs | $ | 16,735 | $ | 12 | $ | 17,802 | $ | 12 | $ | 65,638 | $ | 12 | $ | 69,095 | $ | 11 | |||||||||||||||||
Inventory and other adjustments(v) | 1,893 | 1 | 980 | 1 | 2,591 | 1 | 2,109 | 1 | |||||||||||||||||||||||||
Minesite operating costs | $ | 18,628 | $ | 13 | $ | 18,782 | $ | 13 | $ | 68,229 | $ | 13 | $ | 71,204 | $ | 12 | |||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||
(i) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic mine. | ||||||||||||||||||||||||||||||||
(ii) Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income for by-product metal revenues, inventory production costs, smelting, refining and marketing charges, other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges and other adjustments associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analysis in order to quantify the effects of fluctuating metal prices and exchange rates. | ||||||||||||||||||||||||||||||||
(iii) Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. This measure is calculated by adjusting production costs as shown in the consolidated statements of income for inventory production costs and other adjustments, and then dividing by tonnes of ore milled. As the total cash costs per ounce of gold produced measure can be affected by fluctuations in by-product metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS. | ||||||||||||||||||||||||||||||||
(iv) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. Other adjustments include the addition of smelting, refining and marketing charges to production costs. | ||||||||||||||||||||||||||||||||
(v) This inventory and other adjustment reflects production costs associated with the portion of production still in inventory and smelting, refining and marketing charges associated with production. | ||||||||||||||||||||||||||||||||
(vi) The Lapa mine's cost calculations per ounce of gold produced for the year ended December 31, 2019 exclude 5 ounces of payable gold production, which were credited to the Company as a result of final refining reconciliation following the cessation of mining and processing operations at the Lapa mine. | ||||||||||||||||||||||||||||||||
(vii) The Meadowbank Complex's cost calculations per ounce of gold produced for the year ended December 31, 2019 exclude 35,281 ounces of payable gold production which were produced prior to the achievement of commercial production at the Amaruq satellite deposit on September 30, 2019. | ||||||||||||||||||||||||||||||||
(viii) The Meadowbank Complex's cost calculations per tonne for the year ended December 31, 2019 exclude 369,519 tonnes which were processed prior to the achievement of commercial production at the Amaruq satellite deposit on September 30, 2019. | ||||||||||||||||||||||||||||||||
(ix) The Meliadine mine's cost calculations per ounce of gold produced for the year ended December 31, 2019 exclude 47,281 ounces of payable gold production which were produced prior to the achievement of commercial production on May 14, 2019. | ||||||||||||||||||||||||||||||||
* The Meliadine mine's cost calculations per tonne for the year ended December 31, 2019 exclude 263,749 tonnes which were processed prior to the achievement of commercial production on May 14, 2019. | ||||||||||||||||||||||||||||||||
(xi) The Canadian Malartic mine's cost calculations per ounce of gold produced for the three months and year ended December 31, 2019 exclude 3,137 ounces of payable gold production which were produced during these periods as commercial production at the Barnat deposit has not yet been achieved. | ||||||||||||||||||||||||||||||||
(xii) The Canadian Malartic mine's cost calculations per tonne for the three months and year ended December 31, 2019 exclude 133,615 tonnes which were processed during these periods as achievement of commercial production at the Barnat deposit has not yet been achieved. |
Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced | |||||||||||
(United States dollars per ounce of gold produced, except where noted) | Three Months Ended | Three Months Ended | Year Ended | Year Ended | |||||||
Production costs per the consolidated statements of income (loss) (thousands | $ | 374,969 | $ | 284,472 | $ | 1,247,705 | $ | 1,160,355 | |||
Adjusted gold production (ounces)(i)(ii)(iii)(iv) | 491,541 | 410,712 | 1,696,443 | 1,626,669 | |||||||
Production costs per ounce of adjusted gold production | $ | 763 | $ | 693 | $ | 735 | $ | 713 | |||
Adjustments: | |||||||||||
Inventory and other adjustments(v) | 42 | (12) | 10 | (3) | |||||||
Total cash costs per ounce of gold produced (co-product basis)(vi) | $ | 805 | $ | 681 | $ | 745 | $ | 710 | |||
By-product metal revenues | (60) | (73) | (72) | (73) | |||||||
Total cash costs per ounce of gold produced (by-product basis)(vi) | $ | 745 | $ | 608 | $ | 673 | $ | 637 | |||
Adjustments: | |||||||||||
Sustaining capital expenditures (including capitalized exploration) | 213 | 164 | 185 | 159 | |||||||
General and administrative expenses (including stock options) | 72 | 76 | 71 | 77 | |||||||
Non-cash reclamation provision and other | 9 | 4 | 9 | 4 | |||||||
All-in sustaining costs per ounce of gold produced (by-product basis) | $ | 1,039 | $ | 852 | $ | 938 | $ | 877 | |||
By-product metal revenues | 60 | 73 | 72 | 73 | |||||||
All-in sustaining costs per ounce of gold produced (co-product basis) | $ | 1,099 | $ | 925 | $ | 1,010 | $ | 950 |
Notes: |
(i) Adjusted gold production for the year ended December 31, 2019 excludes 5 ounces of payable gold production at the Lapa mine which were credited to the Company as a result of final refining reconciliation following the cessation of mining and processing operations at the site. |
(ii) Adjusted gold production for the year ended December 31, 2019 excludes 35,281 ounces of payable gold production at the Meadowbank Complex, which were produced prior to the achievement of commercial production at the Amaruq satellite deposit on September 30, 2019. |
(iii) Adjusted gold production for the year ended December 31, 2019 excludes 47,281 ounces of payable gold production at the Meliadine mine, which were produced prior to the achievement of commercial production on May 14, 2019. |
(iv) Adjusted gold production for the three months and year ended December 31, 2019 exclude 3,137 ounces of payable gold production at the Canadian Malartic mine, which were produced during these periods as commercial production at the Barnat deposit has not yet been achieved. |
(v) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon transfer of control over metals sold to the customer. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. Other adjustments are represented by the inclusion of smelting, refining and marketing charges and exclusion of charges not directly associated with the production of minerals. |
(vi) Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product metal revenues, inventory production costs or smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges and other adjustments associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Company's mining operations. Management also uses these measures to monitor the performance of the Company's mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mine's cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analysis in order to quantify the effects of fluctuating metal prices and exchange rates.
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