Stock Symbol: AEM (NYSE and TSX) For further information: Investor Relations
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AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2016 RESULTS – MELIADINE AND AMARUQ PROJECTS APPROVED FOR DEVELOPMENT; ANNUAL GOLD PRODUCTION EXPECTED TO GROW TO 2.0 MILLION OUNCES IN 2020
Toronto (February 15, 2017) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported quarterly net income of $62.7 million, or net income of $0.28 per share for the fourth quarter of 2016. This result includes impairment reversals of the Meadowbank mine and Meliadine project, net of tax, of $81.2 million ($0.36 per share), a non-cash foreign currency translation loss on deferred tax liabilities of $12.9 million ($0.06 per share), various mark-to-market adjustment losses of $9.4 million ($0.04 per share), non-recurring losses of $2.4 million ($0.01 per share) and non-cash foreign currency translation gains of $1.7 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $4.5 million ($0.02 per share) for the fourth quarter of 2016. In the fourth quarter of 2015, the Company reported a net loss of $15.5 million or $0.07 per share.
Not included in the fourth quarter of 2016 adjusted net income above are lower sales volume relative to total ounces produced, net of tax (approximately 30,620 ounces fewer), representing $13.1 million ($0.06 per share), lower realized gold and silver prices compared to average spot prices both 2% lower than the quarterly average, $5.7 million ($0.03 per share) and non-cash stock option expense of $4.2 million ($0.02 per share).
Fourth quarter 2016 cash provided by operating activities was $120.6 million ($120.3 million before changes in non-cash components of working capital). This compares to cash provided by operating activities of $140.7 million in the fourth quarter of 2015 ($112.6 million before changes in non-cash components of working capital). The increase in cash provided by operating activities before changes in non-cash components of working capital during the current period was largely due a tax adjustment in the fourth quarter of 2015.
1Adjusted 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”.
"Continued strong operating results in the fourth quarter of 2016 allowed us to exceed our production forecast and beat our cost guidance for the fifth consecutive year and positions us to complete the development of our growth projects over the next two years”, said Sean Boyd, Agnico Eagle’s Chief Executive Officer. “Our primary focus will be on developing and expanding our business in Nunavut as we complete the construction of a new mine at Meliadine and develop the Amaruq satellite deposit at Meadowbank. These new operations, along with optimizations at existing mines, are expected to result in production growth from current levels to approximately 2.0 million ounces in 2020, along with a decline in unit costs”, added Mr. Boyd.
Fourth quarter and full year 2016 highlights include:
- Continued Strong operational performance – Payable production2 in 2016 was 1,662,888 ounces of gold on production costs per ounce of gold of $621, with total cash costs per ounce3 of $573, compared to guidance of 1,600,000 ounces at total cash costs per ounce of $600. All-in sustaining costs per ounce4 (“AISC”) for 2016 were $824, compared to guidance of $860 per ounce
- 2016 gold reserves increased by 5.0% to 19.9 million ounces (268.4 million tonnes grading 2.31 grams per tonne (“g/t”) gold) – Measured and indicated mineral resources increased by 9%, while inferred mineral resources decreased by 4% (largely due to conversion to higher confidence categories). The average gold reserve grade in 2016 was essentially unchanged from the previous year
- Amaruq and Meliadine approved for development – Given favourable project economics and the expected potential for extensions to the currently forecasted mine plans, the Amaruq satellite deposit at Meadowbank and the Meliadine project have been approved by the Company’s Board of Directors. Both operations are expected to start production in third quarter of 2019; As such, production at Meliadine is now forecast to begin approximately one year earlier than previously anticipated
- New four year guidance; gold production expected to increase from current levels to 2.0 million ounces in 2020 with unit costs expected to decline – The production forecasts for 2017 and 2018 are unchanged from previous guidance of
2Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company, whether such products are shipped during the period or held as inventory at the end of the period.
3Total 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”.
4All-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".
approximately 1.55 and 1.50 million ounces, respectively. Production in 2019 is forecast to be approximately 1.60 million ounces, while production in 2020 is expected to be approximately 2.0 million ounces. The Company is evaluating additional opportunities to increase production in 2018 and beyond
- Cost guidance for 2017 essentially unchanged from prior year’s guidance – In 2017, total cash costs per ounce are forecast to be between $595 and $625 and AISC for 2017 are forecast to be between $850 and $900 per ounce. Total cash costs per ounce and AISC are expected to decline as production grows through 2020
- Exploration Continues to Add Value
- Conversion drilling on the western portion of LaRonde 3 (the portion of the LaRonde mine at a depth below 3.1 kilometres) has encountered highergrade mineralization - Recent intersections include 28.1 g/t gold over 9.3 metres and 13.8 g/t gold over 8.1 metres. These new high-grade intersections are now interpreted as being a distinct lens of massive sulphide mineralization from the main LaRonde 3 horizon. In 2016, the first mineral reserves were declared in the eastern portion of LaRonde 3, and additional inferred mineral resources were declared in the western portion of LaRonde 3. Studies are ongoing to evaluate the potential to mine below the currently planned 3.1 kilometre depth at LaRonde
- Initial inferred mineral resources declared at Odyssey and Barsele - At the Odyssey property (50% owned), which adjoins the Canadian Malartic mine, inferred mineral resources are estimated to be 0.7 million ounces (10.3 million tonnes grading 2.15 g/t gold), while at the Barsele project in Sweden (55% owned), inferred mineral resources are estimated to be 0.7 million ounces (11.9 million tonnes grading 1.72 g/t gold). Both deposits appear to have bulk tonnage and underground potential, similar to Goldex and are being evaluated as potential future production opportunities. Further mineral resource growth is expected in 2017
- Improved financial flexibility – In 2016, net debt5 was reduced by $346 million, further strengthening the Company’s investment grade balance sheet in preparation for the next phase of growth. At year-end 2016, Agnico Eagle had strong liquidity with $548 million in cash and cash equivalents and short term investments and $1.2 billion in undrawn credit lines
- A quarterly dividend of $0.10 per share declared
5Net debt is a Non-GAAP measure. For a reconciliation of net debt to the nearest IFRS equivalent, please see “Reconciliation of Non-GAAP Financial Performance Measures” below. See also “Note Regarding Certain Measures of Performance".
Fourth Quarter and Full Year 2016 Financial and Production Highlights
In the fourth quarter of 2016, strong operational performance continued at the Company's mines. Payable production in the fourth quarter of 2016 was 426,433 ounces of gold, compared to 422,328 ounces in the fourth quarter of 2015. A detailed description of the production performance of each mine is set out below.
Production costs per ounce for the fourth quarter of 2016 were $598, which was higher than the $544 in the 2015 period. Total cash costs per ounce for the fourth quarter of 2016 were $552, which was essentially unchanged from the $547 per ounce for the fourth quarter of 2015. A detailed description of the cost performance of each mine is set out below.
For the full year 2016, the Company recorded net income of $158.8 million, or $0.71 per share. In 2015, the Company recorded net income of $24.6 million, or $0.11 per share. The increase was primarily due to higher realized gold and silver prices (up 8% and 11%, respectively).
For the full year 2016, cash provided by operating activities was $778.6 million ($714.2 million before changes in non-cash components of working capital). This represents a increase over 2015, when cash provided by operating activities totalled $616.2 million ($660.0 million before changes in non-cash components of working capital). The increase was primarily due to the reason described above.
For the fifth consecutive year, Agnico Eagle has reported annual gold production in excess of annual guidance. The Company's payable production for the full year 2016 was 1,662,888 ounces of gold, compared to guidance of 1,600,000 ounces. In 2015, full year production was 1,671,340 ounces. A detailed description of the production performance of each mine is set out below.
Production costs per ounce for the full year 2016 were $621, which was higher than the $596 in 2015. Total cash costs per ounce for the full year 2016 were $573, below guidance of between $580 and $620. In 2015, total cash costs per ounce were $567. A detailed description of the cost performance of each mine is set out below.
AISC for 2016 was $824 per ounce, below guidance of between $840 and $880. The lower AISC is primarily due to lower than forecast total cash costs per ounce in 2016 and higher production than forecast.
Capital Spending and Liquidity - Existing Cash and Credit Facility Provide Flexibility
Cash and cash equivalents and short term investments decreased to $548.4 million at December 31, 2016, from the September 30, 2016 balance of $627.4 million.
The outstanding balance on the Company’s credit facility remained nil at December 31, 2016. This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
Total capital expenditures for the full year 2016 were $535 million, compared to guidance of $491 million. The increase from guidance was primarily due to additional spending at Meliadine, including the purchase of long lead time equipment and material for the Meliadine project to prepare for the upcoming barge season. The additional spending and work at the Meliadine site in 2016 has positioned the project for an expected start date of 2019, one year ahead of the previous schedule.
Capital Expenditures (In thousands of US dollars)
Three Months Ended Twelve Months Ended December 31, 2016 December 31, 2016 Sustaining Capital
LaRonde mine $ 18,896 $ 64,288
| Canadian Malartic mine | 15,284 | 58,174 |
| Meadowbank mine | 3,286 | 38,248 |
| Kittila mine | 15,943 | 62,008 |
| Goldex mine | 7,996 | 22,030 |
| Lapa mine | - | - |
| Pinos Altos | 19,170 | 47,410 |
| Creston Mascota deposit at Pinos Altos | 3,485 | 9,287 |
| La India mine | 2,340 | 10,021 |
| Meliadine project | - | - |
Development Capital
LaRonde mine $
- $ -
| Canadian Malartic mine | 395 | 2,260 |
| Meadowbank mine | 503 | 503 |
| Kittila mine | 4,814 | 13,896 |
| Goldex mine | 15,224 | 59,237 |
| Lapa mine | - | - |
| Pinos Altos | 1,748 | 12,162 |
| Creston Mascota deposit at Pinos Altos | - | - |
| La India mine | 486 | 486 |
| Meliadine project | 45,755 | 130,942 |
| Other | 1,048 | 4,361 |
Total Capital Expenditures $ 156,373 $ 535,313
Quarterly Dividend Declared
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.10 per common share, payable on March 15, 2017 to shareholders of record as of March 1, 2017. Agnico Eagle has now declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for 2017
| Record Date | Payment Date |
| March 1* | March 15* |
| June 1 | June 15 |
| September 1 | September 15 |
| December 1 | December 15 |
*Declared
Dividend Reinvestment Plan
Please follow the link below for information on the Company's dividend reinvestment plan. Dividend Reinvestment Plan
Conference Call Tomorrow
The Company's senior management will host a conference call on Thursday, February 16, 2017 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 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 50879928. The conference call replay will expire on Thursday, March 16, 2017.
The webcast along with presentation slides will be archived for 180 days on the Company’s website www.agnicoeagle.com.
New Four Year Guidance Plan – Amaruq and Meliadine Projects Expected to Begin Production in 2019; Production Forecast to Increase to Approximately 2.0 Mozs in 2020
The Company is announcing its detailed production and cost guidance for 2017, mine by mine production forecasts for 2018 and 2019 and a consolidated production forecast for 2020. Partly due to advancing the spending at Meliadine in the fourth quarter of 2016, the Company expects average annual production of approximately 1.55 million ounces of gold over the next three years with costs stable or lower than currently. However, the production forecast has the potential to increase in 2019 depending on timing of the Amaruq permits and progress of development at the Amaruq satellite deposit at Meadowbank and the Meliadine project. Production in 2020 is forecast to be approximately 2.0 million ounces of gold.
In 2020, the Company expects to have four cornerstone production assets (the LaRonde Complex, Canadian Malartic, Meliadine and the Meadowbank Complex which includes the Amaruq satellite deposit) each with annual production of approximately 250,000 to 400,000 ounces of gold. Beyond 2020, the Company anticipates the Meadowbank Complex production levels to increase as gold grades mined are expected to rise at the Amaruq satellite deposit. In addition, the Kittila deposit in Finland can also become a significant gold producer as a meaningful increase in production is possible as the mining rate is expected to grow as new sources of ore are developed underground.
Highlights from the new production and cost guidance for 2017 through 2020 include:
- In 2017 and 2018, payable gold production is expected to be approximately 1.55 and 1.50 million ounces of gold, respectively. These forecasts are unchanged from the previous guidance announced in the February 2016 forecast. The Company is evaluating additional opportunities to increase production in 2018 and beyond
- Total cash costs per ounce in 2017 are expected to be between $595 and $625 using a US$/C$ foreign exchange rate assumption of 1.28. AISC for 2017 are expected to be between $850 and $900 per ounce. In succeeding years, the Company expects total cash costs per ounce and AISC to be below the 2017 ranges
- Given favorable project economics and the expected potential for additional extensions to the currently forecast mine plans, the Amaruq satellite deposit at Meadowbank and the Meliadine project have both been approved for development. Amaruq is expected to start up in the third quarter of 2019 (subject to receipt of final permits), and production at Meliadine is now forecast to begin a year earlier than previously expected (also in the third quarter of 2019). With the potential start of production at the two Nunavut projects in 2019, full year guidance for 2019 is now expected to be approximately 1.60 million ounces of gold
- In 2020, consolidated production is forecast to be approximately 2.0 million ounces of gold
Following a brief two-year period of increased development capital spending, largely due to the one-year advancement of the Meliadine project, the Company is forecasting a return to free cash generation in 2019. At current foreign exchange rate assumptions (1.28 US$/C$, 1.10 EUR/US$, 18.00 US$/MXP) total capital expenditures are forecast to be approximately $850 million in 2017, approximately $950 million in 2018 and approximately $500 million in 2019. Annual sustaining capital expenditures (included in the above) for 2017 and beyond are expected to remain stable at approximately $300 million.
Funding for the development of the Amaruq satellite deposit at Meadowbank and the Meliadine project is expected to come from existing cash balances, internally generated cash and if needed, drawings on the Company’s lines of credit. The Company has significant debt capacity, as reflected by its investment grade credit rating.
Additional Near-Term Production Potential (2018 to 2020)
The Company is evaluating several potential opportunities (none of which have yet been approved for construction) at a number of existing operations to build further value and enhance the production profile in 2018 through 2020. These opportunities are summarized in the table below.
| Minesite/Region | Opportunity |
| LaRonde Complex | Potential to mine additional ounces from LaRonde Zone 5 (previously referred to as Bousquet Zone 5) |
| Goldex | Potential for increased throughput from Deep Zone 1 and potential for advanced development of Deep Zone 2. Also potential for increased production from Akasaba West once permitting complete |
| Canadian Malartic (50%) | Potential production from near pit zones and/or Odyssey South underground |
| Meadowbank/Amaruq | Potential to accelerate development schedule and drilling to expand known open pit deposit and evaluate the underground potential at the Amaruq deposit |
| Meliadine | Potential to accelerate construction schedule and testing the depth and lateral extensions of the Wesmeg, Normeg and Tiriganiaq zones |
| Kittila | Potential expansion to 2.0 million tonnes per annum, including optimization of the Rimpi and Sisar zones |
| Mexico | Evaluation of satellite zones at Pinos Altos/Creston Mascota and La India |
Development Pipeline Expected to Provide Further Production Growth in 2021 and Beyond
Agnico Eagle has a strong pipeline of development projects that could provide further production growth in 2021 and beyond. These opportunities are typically at an earlier stage than those outlined above. A summary of the longer term opportunities are presented in the following table.
| Minesite/Region | Opportunity |
| LaRonde Complex | Potential development of LaRonde 3 (located below a depth of 3.1 kilometres) where recent drilling has encountered high grade gold intersections |
| Goldex | Evaluation of the South Zone, G Zone and Deep 3 Zone and the neighboring Joubi Mine École properties |
| Canadian Malartic (50%) | Evaluation of the potential for production from Odyssey North underground |
| Kittila | Further optimization of underground mine and development of the lower mine with shaft access |
| Meadowbank | Evaluation of the potential to carry out underground mining at the Amaruq deposit and the potential to expand the higher grade V Zone |
| Meliadine | Further drill testing of known zones and gold occurrences on the 80-kilometre-long greenstone belt |
| Barsele | Testing additional mineralized zones and evaluation of production potential |
| El Barqueno | Evaluation of several potential production scenarios |
| Hammond Reef (50%) | Potential for production in a higher margin environment |
| Kirkland Lake (50%) | Potential production scenario at Upper Beaver and potential synergies from development of other properties in the region |
Four-Year Guidance Plan Outlines a Growing Production Profile with Stable Costs
Mine by mine production and cost guidance for 2017, mine by mine production forecasts for 2018 and 2019 and a consolidated production forecast for 2020 are presented below. Opportunities to improve these forecasts are ongoing.
Estimated Payable Gold Production 2016 2017 2018 2019 Actual Forecast Forecast Forecast Northern Business
| LaRonde | 305,788 | 315,000 | 360,000 | 365,000 | |||
| LaRonde Zone 5 | - | - | 20,000 | 35,000 | |||
| Canadian Malartic (50%) | 292,514 | 300,000 | 325,000 | 320,000 | |||
| Lapa | 73,930 | 15,000 | - | - | |||
| Goldex | 120,704 | 105,000 | 115,000 | 120,000 | |||
| Kittila | 202,508 | 190,000 | 200,000 | 210,000 | |||
| Meadowbank | 312,214 | 320,000 | 165,000 | - | |||
| Amaruq Deposit | - | - | - | 135,000 | |||
| Meliadine | - | - | - | 125,000 | |||
| 1,307,658 | 1,245,000 | 1,185,000 | 1,310,000 |
Southern Business
| Pinos Altos | 192,772 | 170,000 | 175,000 | 175,000 |
| Creston Mascota | 47,296 | 40,000 | 30,000 | 5,000 |
| La India | 115,162 | 100,000 | 110,000 | 110,000 |
| 355,230 | 310,000 | 315,000 | 290,000 | |
| Total Gold Production | 1,662,888 | 1,555,000 | 1,500,000 | 1,600,000 |
Total cash costs per ounce on a by-product basis of gold produced ($ per ounce):
2016 2017 Actual Forecast Northern Business
LaRonde $ 501 $
| Canadian Malartic (50%) | 606 | 578 |
| Lapa | 732 | 1,002 |
| Goldex | 532 | 667 |
| Kittila | 699 | 728 |
| Meadowbank | 715 | 683 |
$ 622 $
Southern Business
| Pinos Altos | 356 | 474 |
| Creston Mascota | 516 | 812 |
| La India | 395 | 583 |
$ 390 $ 573 $ Total $
Currency and commodity assumptions used for 2017 cost estimates and sensitivities are presented in the table below:
2017 commodity and currency price Approximate impact on total cash costs per assumptions ounce basis
| Silver ($/oz) | 16.00 | $1 / oz change in silver price | $3 |
| Copper ($/mt) | 5,500 | 10% change in copper price | $2 |
| Zinc ($/mt) | 2,425 | 10% change in zinc price | $1 |
| Diesel (C$/ltr) | 0.80 | 10% change in diesel price | $3 |
| US$/C$ | 1.28 | 1.0% change in US$/C$ | $4 |
| EURO$/US$ | 1.10 | 1.0% change in Euro$/US$ | $1 |
| US$/MXP | 18.00 | 10% change in US$/MXP | $5 |
The estimated production level in 2018 is currently forecast to be approximately 1.50 million ounces of gold, which is unchanged from the 1.50 million ounces in the February 2016 forecast. The Company is currently evaluating potential opportunities to further optimize and improve production levels in 2018 and beyond (see discussion below for additional details).
With the start of production at the two Nunavut projects in 2019, full year guidance for 2019 is now expected to be approximately 1.60 million ounces of gold.
In 2020, consolidated production is forecast to be approximately 2.0 million ounces of gold. In 2018 through 2020, the Company expects total cash costs per ounce and AISC to be below the 2017 ranges based on the currency and commodity assumptions used for 2017 as described above.
Depreciation Guidance
Agnico Eagle expects its 2017 depreciation and amortization expense to be between $580 and $610 million.
General & Administrative Cost Guidance
Agnico Eagle expects 2017 general and administration expense to be between $70 and $80 million, excluding share based compensation. In 2017, share based compensation is expected to be between $25 and $35 million (including non-cash stock option expense of between $15 and $20 million), which is consistent with previous years.
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 2017
For 2017, the effective tax rates are expected 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%.
Updated Three Year Guidance Plan; Incorporating Initial Production from Meliadine and the Amaruq Satellite Deposit at Meadowbank
Since the prior three-year production guidance of February 10, 2016 ("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 Forecast | 2016 | 2017 | 2018 | 2019 | ||||
| Previous Guidance (oz) | 275,000 | 320,000 | 375,000 | N.A. | ||||
| Current Guidance (oz) | 305,788 | 315,000 | 360,000 | 365,000 | ||||
| (actual) |
| LaRonde Forecast 2017 | 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 Tonne6 |
|---|---|---|---|---|---|---|---|---|---|---|
| 2,150 | 4.77 | 95.6% | 20.03 | 77.5% | 0.51% | 66.9% | 0.25% | 82.0% | C$115 |
At LaRonde, the slightly lower production guidance for 2017 and 2018 (as compared to Previous Guidance) is primarily due to changes in the mining sequence. In 2017, approximately 87% of the ore is expected to come from the higher grade lower mine area (below the 248 level) compared to 89% in the Previous Guidance. The year-over-year production forecasts through 2019 largely reflect an increase in grade closer to that of the average mineral reserves.
| LaRonde Zone 5 Forecast | 2017 | 2018 | 2019 |
| Previous Guidance (oz) | N.A. | N.A. | N.A. |
| Current Guidance (oz) | N.A. | 20,000 | 35,000 |
In 2003, the Company acquired the Bousquet gold property from Barrick Gold Corporation. The property adjoins the LaRonde mining complex to the east and hosts the Bousquet Zone 5, which previous operators had partly exploited by open pit. Given its proximity to the LaRonde complex, the Company has renamed the property LaRonde
Zone 5.
LaRonde Zone 5 has been approved for development (subject to permitting approval). Permits are expected to be received by mid-2018, with mining expected to commence shortly thereafter. Please see below for additional details on LaRonde Zone 5.
| Canadian Malartic Forecast | 2016 | 2017 | 2018 | 2019 |
| Previous Guidance (oz) | 280,000 | 295,000 | 305,000 | N.A. |
| Current Guidance (oz) | 292,514 (actual) | 300,000 | 325,000 | 320,000 |
| Canadian Malartic Forecast 2017 | Ore Milled ('000 tonnes) | Gold (g/t) | Gold Mill Recovery (%) | Minesite Costs per Tonne |
| 9,425 | 1.11 | 89.3% | C$24 |
At Canadian Malartic (in which Agnico Eagle has 50% ownership) guidance for 2017 and 2018 has been slightly increased due to a change in the life-of-mine plan. The updated plan provides for earlier access to higher grade zones that are located deeper in the Canadian Malartic pit.
6Minesite 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”.