Agnico Eagle Reports Fourth Quarter and Full Year 2019 Results – Record Annual and Quarterly Gold Production; Production Guidance Outlines 18% Growth Through 2022 with Declining Unit
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations (416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS – RECORD ANNUAL AND QUARTERLY GOLD PRODUCTION; PRODUCTION GUIDANCE OUTLINES 18% GROWTH THROUGH 2022 WITH DECLINING UNIT COSTS IN 2021 AND 2022; PIPELINE PROJECTS CONTINUE TO ADVANCE; QUARTERLY DIVIDEND INCREASED
Toronto (February 13, 2020) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported quarterly net income of $331.7 million, or net income of $1.39 per share, for the fourth quarter of 2019. This result includes an impairment reversal (net of tax) relating to the Meliadine mine of $223.4 million ($0.93 per share), non-cash foreign currency translation gains on deferred tax liabilities and nonrecurring tax adjustments of $10.6 million ($0.05 per share), mark-to-market gains and other adjustments of $7.2 million ($0.03 per share) and derivative gains on financial instruments of $3.1 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $87.4 million or $0.37 per share for the fourth quarter of 2019. For the fourth quarter of 2018, the Company reported a net loss of $393.7 million or a loss of $1.68 per share.
Included in the fourth quarter of 2019 net income, and not adjusted above, is a non-cash stock option expense of $3.2 million ($0.01 per share).
For the full year 2019, the Company reported net income of $473.2 million, or $2.00 per share. This compares with the full year 2018, when the company reported a net loss of $326.7 million, or loss of $1.40 per share.
In the fourth quarter of 2019, cash provided by operating activities was $257.5 million ($263.8 million before changes in non-cash components of working capital), as compared with the fourth quarter of 2018 when cash provided by operating activities was $140.3 million ($150.4 million before changes in non-cash components of working capital).
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".
For the full year 2019, cash provided by operating activities was a record $881.7 million ($867.3 million before changes in non-cash components of working capital), as compared with the full year 2018 when cash provided by operating activities was $605.7 million ($645.5 million before changes in non-cash components of working capital).
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 Nunavut, 2019 was a pivotal year for the Company. We set new records for both annual gold production and cash provided by operating activities. Despite setting these production and cash flow records, the production ramp up in Nunavut has been slower than expected, which has resulted in higher than anticipated costs in the fourth quarter of 2019 and slight revisions to our 2020 production guidance," said Sean Boyd, Agnico Eagle's Chief Executive Officer. "In 2020, we have put plans in place to improve productivity and optimize the operations as they continue to ramp up and we expect quarterly production growth and lower costs as we move through the year. We remain confident in our business with 18% production growth forecast through 2022 and our confidence is demonstrated with a further 14% increase in our quarterly dividend," added Mr. Boyd.
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
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 byproduct 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".
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 the Nunavut 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 in Nunavut 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. At East 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 at East 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
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 $763, compared to $693 in the prior-year period. Total cash costs per ounce in the fourth quarter of 2019 were $745, compared to $608 in the prior-year period.
Production costs per ounce for the full year 2019 were $735, compared to $713 in the prioryear period. Total cash costs per ounce for the full year 2019 were $673, compared to $637 in the prior-year period.
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 $1,039 per ounce, compared to $852 in the prior-year period. AISC for the full year 2019 was $938 per ounce, compared to $877 in the prior-year period.
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 $223.4 million relating to the Meliadine mine was recorded in connection with an impairment review performed under International Financial Reporting Standards. The impairment reversal was recognized as a result of various factors including the decrease in project risk.
Cash Position Continues to Grow, Resulting in Increasing Financial Flexibility
Cash and cash equivalents and short-term investments increased to $327.9 million at December 31, 2019, from the September 30, 2019 balance of $265.2 million.
The outstanding balance on the Company's credit facility remained nil at December 31, 2019. This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
With the upcoming debt maturity of $360 million of notes due in April 2020, the Company is evaluating various options to maintain financial flexibility. The Company remains committed to maintaining an investment grade balance sheet and expects to reduce gross debt in 2020 while maintaining strong liquidity.
Approximately 16% of the Company's 2020 Canadian dollar exposure is hedged at an average floor price of approximately 1.30 C$/US$. Approximately 8% of the Company's 2020 Mexican peso exposure is hedged at an average floor price of approximately 19.40 MXP/US$. The Company's 2020 Euro exposure is currently unhedged. The Company's full year 2020 cost guidance is based on assumed exchange rates of 1.30 C$/US$, 18.00 MXP/US$ and 1.15 US$/EUR. The Company anticipates adding to its operating currency hedges, subject to market conditions.
Approximately 77% of the Company's diesel exposure relating to its Nunavut operations for 2020 is hedged at prices better than the 2020 cost guidance assumption of C$0.85 per litre (excluding transportation costs). The Company anticipates adding to its diesel hedges, subject to market conditions.
Capital Expenditures
Total capital expenditures (including sustaining capital) for the full year 2019 were $824.8 million, compared to guidance of $790 million. The increase in capital expenditures compared to the previous guidance primarily related to additional spending at Kittila and the Amaruq satellite deposit. Approximately $16 million of additional capital expenditures at Kittila was due to the acceleration of costs in connection with tailings storage and the expansion project. At Amaruq, additional capital costs totaling $13 million were incurred in the fourth quarter of 2019, primarily related to additional mobile equipment and increased stripping costs.
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 December 31, 2019 December 31, 2019 Sustaining Capital
| LaRonde mine | $ 18,794 $ | 72,165 |
| LaRonde Zone 5 | 2,140 | 6,207 |
| Canadian Malartic mine | 13,960 | 45,880 |
| Meadowbank Complex | 18,801 | 18,801 |
| Meliadine mine | 12,554 | 30,937 |
| Kittila mine | 17,490 | 78,182 |
| Goldex mine | 7,795 | 22,711 |
| Pinos Altos mine | 9,511 | 28,098 |
| Creston Mascota mine | — | — |
| La India mine | 3,479 | 10,851 |
| Total Sustaining Capital | $ 104,524 $ | 313,832 |
Development Capital
| LaRonde mine | $ 10,481 $ | 20,011 |
| LaRonde Zone 5 | — | 2,770 |
| Canadian Malartic mine | 9,554 | 37,171 |
| Meadowbank Complex | 17,556 | 174,866 |
| Amaruq underground project | 8,300 | 38,400 |
| Meliadine mine | 6,015 | 91,554 |
| Kittila mine | 37,023 | 101,597 |
| Goldex mine | 4,056 | 21,223 |
| Pinos Altos mine | 2,645 | 13,861 |
| Creston Mascota mine | — | — |
| La India mine | 931 | 4,516 |
| Other | 2,984 | 5,027 |
| Total Development Capital | $ 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.
Don Allan retired as Senior Vice-President, Corporate Development and his responsibilities were transferred to Jean Robitaille, who was appointed Senior Vice-President – Corporate Development, Business Strategy and Technical Services. Jean's mandate will be to increase alignment between these functions as we continue to advance and build our pipeline of sustainable, high quality projects.
Transitioning to her retirement at the end of 2020, Louise Grondin's responsibilities for Environment and Sustainable Development were transferred to Carol Plummer, who was appointed Senior Vice-President, Sustainability. For 2020, Louise will remain as Senior Vice- President, People and Culture.
Quarterly Dividend Increased by 14%
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.20 per common share, payable on March 16, 2020 to shareholders of record as of February 28, 2020. Agnico Eagle has now declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for 2020
| Record Date | Payment Date |
| February 28* | March 16* |
| June 1 | June 15 |
| August 31 | September 15 |
| November 25 | December 15 |
*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 Friday, February 14, 2020 at 11:00 AM (E.S.T.) to discuss the Company's fourth quarter and full year financial and operating results.
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 Friday, March 14, 2020.
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 Nunavut operations and a more conservative mining plan in the West mine area at LaRonde. Further details on this guidance are provided below.
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 $725 and $775 using a C$/US$ foreign exchange rate assumption of 1.30. The higher costs in 2020, when compared to 2019, are largely a result of higher costs in Nunavut due to the slower than expected production ramp up, and general industry cost pressures (3% to 5% increase primarily on consumables and labour). The Company remains focused on reducing costs through productivity improvements (primarily in Nunavut) and innovation initiatives at all of its operations. As a result, in 2021, using a C$/US$ foreign exchange rate assumption of 1.30, total cash costs per ounce are forecast to decline to between $675 and $725. Costs are then forecast to then remain stable through 2022.
AISC for 2020 are expected to be between $975 and $1,025 per ounce. The higher AISC in 2020, when compared to 2019, is largely due to higher total cash costs. In 2021, using a C$/US$ foreign exchange rate assumption of 1.30, AISC are forecast to decline to between $900 and $950 per ounce, largely due to higher gold production and lower total cash costs. The Company expects AISC to be steady to declining in 2022 and beyond (based on the same foreign exchange rate assumption).
With the start-up of operations at Meliadine and Amaruq in 2019, the Company now has four cornerstone production assets (the LaRonde Complex, Canadian Malartic, Meliadine and the Meadowbank Complex) each with annual production rates of approximately 250,000 to 400,000 ounces of gold. In addition, with the expected completion of the shaft and mill expansion at Kittila in late 2021, annual production in 2022 and beyond is expected to increase by approximately 25-30% over current levels, to more than 250,000 ounces at Kittila as new sources of ore are developed underground.
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 2021 2022 2019* 2020** Forecast Forecast Actual Forecast Range Mid-Point Range Mid-Point Northern Business
| LaRonde Complex | 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 |
| Goldex mine | 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 |
| Meadowbank Complex | 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
| Pinos Altos mine | 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 February 2019 forecast. In 2022, the estimated mid-point production level is currently forecast to be approximately 2.10 million ounces of gold.
Total cash costs per ounce on a by-product basis of gold produced ($ per ounce):
2019 2020 Forecast Actual (mid-point)
Northern Business
| LaRonde Complex | $ | 502 | $ | 620 |
| Canadian Malartic mine (50%) | 606 | 624 | ||
| Goldex mine | 584 | 650 | ||
| Kittila mine | 736 | 745 | ||
| Meadowbank Complex | 1,152 | 1,282 | ||
| Meliadine mine | 748 | 670 | ||
| $ | 672 | $ | 753 |
Southern Business
| Pinos Altos mine | 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 Approximate impact on total cash price assumptions costs per ounce basis
| Silver ($/oz) | 17.50 | $1 / oz change in silver price | $2 |
| Copper ($/lb) | 2.75 | 10% change in copper price | $1 |
| Zinc ($/lb) | 1.10 | 10% change in zinc price | $1 |
| Diesel (C$/ltr) | 0.85 | 10% change in diesel price | $3 |
1.0% change in C$/US$
| C$/US$ | 1.30 | $6 | |
| US$/EUR | 1.15 | 1.0% change in US$/EUR | $1 |
| MXP/US$ | 18.00 | 10% change in MXP/US$ | $4 |
Depreciation Guidance
Agnico Eagle expects its 2020 depreciation and amortization expense to be between $625 and $675 million.
General & Administrative Cost Guidance
Agnico Eagle expects 2020 general and administration expenses to be between $85 and $95 million, excluding share-based compensation. In 2020, share based compensation expense is expected to be between $25 and $35 million (including non-cash stock option expense of between $10 and $15 million).
Please see the supplemental financial data section of the Financial and Operating Database on the Company's website for additional historical financial data.
Tax Guidance
For 2020, the Company expects its effective tax rates to be:
Canada - 40% to 50% Mexico - 35% to 40% Finland - 20%
The Company's overall tax rate is expected to be between 40% and 45% for the full year 2020.
Updated Three Year Guidance Plan
Since the prior three-year gold production guidance of February 14, 2019 ("Previous Guidance"), there have been several operating developments resulting in changes to the overall three-year production profile. Descriptions of these changes are set out below.
Northern Business
ABITIBI REGION, QUEBEC
| LaRonde Complex Forecast | 2019 | 2020 | 2021 | 2022 |
| Previous Guidance (oz) | 380,000 | 390,000 | 385,000 | n.a. |
| Current Guidance (oz) | 402,984 (actual) | 342,500 | 350,000 | 360,000 |
| LaRonde Complex Forecast 2020 | Ore Milled ('000 tonnes) | Gold (g/t) | Gold Mill Recovery (%) | Silver (g/t) | Silver Mill Recovery (%) | Zinc (%) | Zinc Mill Recovery (%) | Copper (%) | Copper Mill Recovery (%) | Minesite Costs per Tonne (C$)5 |
|---|---|---|---|---|---|---|---|---|---|---|
| 2,866 | 3.93 | 94.6 % | 9.7 | 76.6% | 0.29% | 69.5% | 0.15% | 80.6% | $108 |
In 2019, the Company was granted a revision to the Certificate of Authorization at the LaRonde Complex, which allowed for the processing of ore from LaRonde Zone 5 ("LZ5") through the LaRonde mill circuit. As a result, the Company will report the operational parameters from both LZ5 and LaRonde on a combined basis starting in 2020.5
At the LaRonde Complex, the lower production guidance for 2020 and 2021 (as compared to Previous Guidance) is related to lowered anticipated production rates at the LaRonde mine, partially offset by increased mining rates at LZ5, which is lower grade.
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.