Operational Performance Continues; Full Year Production Guidance Increased; Nunavut Projects Advancing on Schedule and Budget; Positive Exploration Results at Multiple Projects
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 SECOND QUARTER 2017 RESULTS; STRONG OPERATIONAL PERFORMANCE CONTINUES; FULL YEAR PRODUCTION GUIDANCE INCREASED; NUNAVUT PROJECTS ADVANCING ON SCHEDULE AND BUDGET; POSITIVE EXPLORATION RESULTS AT MULTIPLE PROJECTS
Toronto (July 26, 2017) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported quarterly net income of $61.9 million, or $0.27 per share, for the second quarter of 2017. This result includes non-cash foreign currency translation gains on deferred tax liabilities of $12.1 million ($0.05 per share), various mark-to-market and other adjustment losses of $10.3 million ($0.04 per share), unrealized gains on financial instruments of $7.9 million ($0.03 per share) and non-cash foreign currency translation losses of $2.7 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $54.9 million or $0.24 per share for the second quarter of 2017. In the second quarter of 2016, the Company reported net income of $19.0 million or $0.09 per share.
Not included in the second quarter of 2017 adjusted net income above is non-cash stock option expense of $3.8 million ($0.02 per share).
For the first six months of 2017, the Company reported net income of $137.8 million, or $0.60 per share. This compares with the first six months of 2016 when net income was $46.8 million, or $0.21 per share. Financial results in the 2017 period were positively affected by higher gold sales volumes and realized prices (approximately 6% and 1% higher, respectively) and lower depreciation expense.
In the second quarter of 2017, cash provided by operating activities decreased to $184.0 million ($197.2 million before changes in non-cash components of working capital) compared with cash provided by operating activities of $229.5 million in the second quarter of 2016 ($192.7 million before changes in non-cash components of working capital). The cash provided by operating activities before changes in working capital during the current period were essentially the same.
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 first six months of 2017, cash provided by operating activities was $406.6 million ($421.2 million before changes in non-cash components of working capital), as compared with the first six months of 2016 when cash provided by operating activities was $375.2 million ($360.2 million before changes in non-cash components of working capital). The increase in cash provided by operating activities before changes in working capital during the first six months of 2017 was mainly due to a combination of higher gold and byproduct metals production and higher realized gold prices.
"As a result of continued strong production and cost performance at all of our mines, we have increased our gold production guidance to 1.62 million ounces from 1.57 million ounces and reduced our total cash cost guidance from $610 per ounce to $595 per ounce”, said Sean Boyd, Agnico Eagle’s Chief Executive Officer. “In addition to strong operating and financial results, we continue to make very good progress on the exploration and development front. Our Nunavut projects are advancing on schedule and budget, and we are also generating positive exploration results at many of our minesites, which should support future growth initiatives”, added Mr. Boyd.
Second Quarter 2017 highlights include:
- Operations continue to deliver strong performance – Payable gold production2 in the second quarter of 2017 was 427,743 ounces of gold at production costs per ounce of $634, total cash costs3 per ounce of $556 and all-in sustaining costs per ounce 4 (“AISC”) of $785
- Full year production guidance increased and unit cost forecasts reduced – Given the strong first half operational performance, 2017 production is now expected to be 1.62 million ounces compared to previous guidance of 1.57 million ounces. Total cash costs per ounce are now expected to be $580 to $610 (previously $595 to $625) and AISC are expected to be $830 to $880 per ounce (previously $850 to $900)
- Meliadine project continues to progress on schedule and budget – Underground development is ahead of plan and engineering was 80% complete at the end of June 2017. Construction activities are progressing well with cranes and
2Payable production of a mineral means 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 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” below.
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" below.
structural steel for the erection of surface buildings being moved to site from the Rankin Inlet laydown facility. The first delivery of the shipping season arrived in Rankin Inlet on June 30, 2017. Since then, three deliveries of construction materials have been received at Rankin Inlet. Four additional deliveries of construction materials are expected over the next two months
- Amaruq exploration program continues to yield positive results – At Amaruq, infill drilling has been completed on the Whale Tail and V Zone deposits, and other target areas are now being explored. Significant results include: 6.9 grams per tonne (“g/t”) over 6 metres on the western extension of the planned Whale Tail pit and 20.4 g/t gold over 10.4 metres at the V Zone at 225 metres depth, beneath the planned pit outline
- Infill and exploration drilling expected to result in mineral resource additions and conversions at multiple properties – Significant results include: 7.1 g/t gold over 33.5 metres at the Rimpi deposit at Kittila , 23.7 g/t gold over 10.9 metres at LaRonde 3 and 1.6 g/t gold over 18.2 metres near surface at the Bravo deposit at Creston Mascota
- A quarterly dividend of $0.10 per share was declared
Second Quarter Financial and Production Highlights – Higher Gold Production, Lower Production Costs – 2017 Cost Forecasts Decrease
In the second quarter of 2017, strong operational performance continued at the Company's mines. Payable gold production was 427,743 ounces, compared to 408,932 ounces in the second quarter of 2016. The higher level of production in the 2017 period was primarily due to higher grades mined at Meadowbank and Canadian Malartic. A detailed description of the production of each of the Company’s mines is set out below.
In the first six months of 2017, payable gold production was 845,959 ounces, compared to 820,268 ounces in the 2016 period. The higher level of production in the 2017 period was primarily due to higher grades mined at Meadowbank.
Production costs per ounce for the second quarter of 2017 were $634, which was essentially the same as the $625 in the 2016 period. Total cash costs per ounce for the second quarter of 2017 were $556 which was 6% lower compared to $592 per ounce for the second quarter 2016. Total cash costs per ounce in the second quarter of 2017 were positively affected by higher production of gold at Meadowbank and Canadian Malartic. A detailed description of the cost performance of each of the Company’s mines is set out below.
Production costs per ounce for the first six months of 2017 were $606, which was slightly lower than the $609 in the 2016 period. Production costs per ounce were positively affected by higher grades mined at Meadowbank and Canadian Malartic. Total cash costs per ounce for the first six months of 2017 were $548 compared with $582 in the prior-year period. Total cash costs per ounce in the first six months of 2017 were positively affected by higher production of gold at Meadowbank and Canadian Malartic. The Company now forecasts a decrease in total cash costs per ounce for 2017 to $580 to $610 per ounce, which is down from previous guidance of $595 to $625 per ounce.
AISC for the second quarter of 2017 were 7% lower at $785 per ounce compared to $848 in the second quarter of 2016. The lower AISC is primarily due to lower total cash costs per ounce and lower sustaining capital expenditures compared to the second quarter of 2016. AISC in 2017 are now forecast to be $830 to $880 per ounce, lower than previous guidance of $850 to $900 per ounce.
AISC for the first six months of 2017 was $764 per ounce compared to $822 in the prioryear period. The lower AISC is primarily due to lower total cash costs per ounce and lower sustaining capital expenditures compared to the prior-year period.
Cash Position Remains Strong
Cash and cash equivalents and short term investments increased to $952.4 million at June 30 2017, from the March 31, 2017 balance of $804.3 million.
On April 7, 2017, the Company repaid the first series of maturing guaranteed senior unsecured notes totalling $115 million. On June 29, 2017, the Company issued, on a private placement basis, an aggregate of $300 million of guaranteed senior unsecured notes due 2025, 2027, 2029 and 2032 (the “Notes”) with a weighted average maturity of 10.9 years and weighted average coupon of 4.67%. Net proceeds from the sale of the Notes were used for general corporate purposes. During the quarter, the Company’s investment grade credit rating was re-confirmed by DBRS with a stable trend.
The outstanding balance on the Company’s credit facility remained nil at June 30, 2017. This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
Approximately 35% of the Company’s remaining 2017 Canadian dollar exposure is hedged at a floor price of 1.30 US$/C$. For remaining 2017 Euro exposure, approximately 11% is hedged at a floor price of 1.10 EURO$/US$ and for remaining 2017 Mexican Peso exposure, approximately 34% is hedged at 18.60 US$/MXP.
Capital Expenditures
Additional expenditures in 2017 for preliminary work on the road deviation at the Canadian Malartic extension project are expected to be between $16 to $22 million, reflecting the Company’s 50% interest. These additional expenditures are expected to be offset by reduced capital expenditures at other projects such as Goldex and LaRonde Zone 5. The forecast for 2017 capital expenditures remains unchanged at $859 million. The following table sets out capital expenditures (including sustaining capital) in the second quarter and first six months of 2017.
Capital Expenditures (In thousands of US dollars)
Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Sustaining Capital
LaRonde mine $ 22,532 $ 36,337
| Canadian Malartic mine | 12,628 | 25,070 |
| Meadowbank mine | 3,322 | 5,753 |
| Kittila mine | 12,254 | 21,935 |
| Goldex mine | 5,031 | 8,210 |
| Pinos Altos mine | 8,143 | 16,382 |
| Creston Mascota deposit at Pinos Altos | 1,382 | 1,964 |
| La India mine | 2,265 | 3,899 |
Development Capital
LaRonde Zone 5 $ 4,448 $ 6,871
| Canadian Malartic mine | 723 | 1,441 |
| Amaruq satellite deposit | 38,541 | 50,861 |
| Kittila mine | 6,155 | 12,635 |
| Goldex mine | 7,086 | 19,641 |
| Pinos Altos mine | 6,048 | 6,937 |
| La India mine | 2,483 | 2,483 |
| Meliadine project | 93,125 | 141,690 |
| Other | 159 | 886 |
Total Capital Expenditures $ 226,325 $ 362,995
Revised 2017 Guidance – Production Increased, Costs Lowered, Depreciation Decreased
Production for 2017 is now forecast to be 1.62 million ounces of gold (previously 1.57 million ounces) with total cash costs per ounce expected to be $580 to $610 (previously $595 to $625) and AISC expected to be approximately $830 to $880 per ounce (previously $850 to $900).
The Company expects depreciation and amortization expense to be approximately $550 million. Previous guidance was $580 to $610 million.
Dividend Record and Payment Dates for the Third Quarter of 2017
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.10 per common share, payable on September 15, 2017, to shareholders of record as of September 1, 2017. Agnico Eagle has declared a cash dividend every year since 1983.
Other Expected Dividend and Record Dates for 2017
| Record Date | Payment Date |
| December 1 | December 15 |
Dividend Reinvestment Plan
Please follow the link below for information on the Company's dividend reinvestment plan. Dividend Reinvestment Plan
Second Quarter 2017 Results Conference Call and Webcast Tomorrow
The Company's senior management will host a conference call on Thursday, July 27, 2017 at 10:00 AM (E.D.T.) to discuss financial results and provide an update of the Company’s operating activities.
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 ten 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 50955626. The conference call replay will expire on August 27, 2017.
The webcast, along with presentation slides will be archived for 180 days on the Company’s website.
NORTHERN BUSINESS REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec’s largest gold producer with a 100% interest in three mines (LaRonde, Goldex and Lapa) and a 50% interest in the Canadian Malartic mine. These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.
LaRonde Mine – Infill Drilling Expected to Upgrade Mineral Resources with Potential for Higher Gold Grades in Western Portion of LaRonde 3 Project
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
LaRonde Mine - Operating Statistics Three Months Ended Three Months Ended June 30, 2017 June 30, 2016
| Tonnes of ore milled (thousands of tonnes) | 520 | 569 |
| Tonnes of ore milled per day | 5,708 | 6,253 |
| Gold grade (g/t) | 4.51 | 4.31 |
| Gold production (ounces) | 72,090 | 75,159 |
Production costs per tonne (C$) $ 118 $ Minesite costs per tonne (C$) $ 113 $ 647 $ Production costs per ounce of gold produced ($ per ounce): $ Total cash costs per ounce of gold produced ($ per ounce): $ 482 $
Production costs per tonne in the second quarter of 2017 increased when compared to the prior-year period due to lower tonnage as a result of a planned shutdown to perform maintenance on the ventilation system and the timing of unsold concentrate inventory. Production costs per ounce in the second quarter of 2017 increased when compared to the prior-year period due to lower production and the reasons described above.
Minesite costs per tonne5 in the second quarter of 2017 increased when compared to the prior-year period due to lower tonnage as a result of a planned shutdown to perform maintenance on the ventilation system. Total cash costs per ounce in the second quarter of 2017 decreased when compared to the prior-year period due to higher by-product metal revenues.
5Minesite 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.
LaRonde Mine - Operating Statistics Six Months Ended Six Months Ended June 30, 2017 June 30, 2016
| Tonnes of ore milled (thousands of tonnes) | 1,079 | 1,147 |
| Tonnes of ore milled per day | 5,960 | 6,302 |
| Gold grade (g/t) | 4.56 | 4.27 |
| Gold production (ounces) | 151,002 | 150,496 |
112 $ Production costs per tonne (C$) $ 111 $ Minesite costs per tonne (C$) $ 603 $ Production costs per ounce of gold produced ($ per ounce): $ 473 $ Total cash costs per ounce of gold produced ($ per ounce): $
Production costs per tonne for the first six months of 2017 increased when compared to the prior-year period due to lower tonnage as a result of a planned shutdown to perform maintenance on the ventilation system and the timing of unsold concentrate inventory. Production costs per ounce for the first six months of 2017 increased due to the reasons described above.
Minesite costs per tonne for the first six months of 2017 increased when compared to the prior-year period due to lower tonnage as a result of a planned shutdown to perform maintenance on the ventilation system. Total cash costs per ounce for the first six months of 2017 decreased when compared to the prior-year period due to higher gold production from higher gold grades and higher by-product metal revenues.
At the LaRonde 3 project, studies are ongoing to evaluate the potential to mine below the currently planned 311 level (a depth of 3.1 kilometres). The current mineral resources in the western portion of the deposit are all in the inferred mineral resource category, extending to the 371 level.
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 of these holes are shown on the LaRonde Composite Longitudinal Section. All intercepts reported for the LaRonde mine show capped gold grades over estimated true widths.
Recent exploration and infill drill results from 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-290-075A | 482.1 | 497.5 | 3,240 | 10.9 | 28.8 | 22.1 | 33.6 | 0.35 | 0.10 |
| LR-290-076 | 415.7 | 423.0 | 3,137 | 4.3 | 15.1 | 13.0 | 83.7 | 0.56 | 10.07 |
| LR-290-077A | 548.7 | 555.1 | 3,292 | 3.5 | 5.9 | 5.9 | 15.7 | 0.12 | 0.71 |
| LR-293-021A | 345.0 | 361.5 | 3,123 | 11.9 | 12.6 | 12.6 | 16.0 | 0.25 | 0.03 |
| LR-293-022 | 378.6 | 396.6 | 3,163 | 10.9 | 25.6 | 23.7 | 15.6 | 0.30 | 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 values in
this table were capped.
An infill drill program is continuing from the 311 to the 371 levels, with a focus on the western portion of the deposit where recent drilling has continued to encounter highergrade mineralization between the 311 and 340 levels. Drilling highlights from the first half of 2017 include: 23.7 g/t gold over 10.9 metres at 3,163 metres depth in hole LR-293-022 and 22.1 g/t gold over 10.9 metres at 3,240 metres depth in hole LR-290-075A.
These new high-grade intersections support 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 2017 update.
[LaRonde Mine Composite Longitudinal Section]
LaRonde Zone 5 – Permitting and Development Activities Remain on Schedule
In 2003, the Company acquired the LaRonde Zone 5 project. The project lies adjacent to and west of the LaRonde mining complex and previous operators mined the deposit by open pit. In February 2017, the Company approved LaRonde Zone 5 for development (subject to permitting approval). Permits are expected to be received by mid-2018 with underground mining expected to commence shortly thereafter.
In the first quarter of 2017, the certificate of authorization for surface construction was received. Construction of the paste plant is underway with completion expected in the second quarter of 2018. A new underground ramp is being driven with lateral underground development underway on three levels in preparation for mining activities. For additional details on the project see the Company’s news release dated February 15, 2017.
Canadian Malartic Mine – Record Quarterly Production and Mill Throughput
In June 2014, Agnico Eagle and Yamana Gold Inc. (“Yamana”) acquired all of the issued and outstanding common shares of Osisko Mining Corporation and created the Canadian Malartic General Partnership (the “Partnership”). The Partnership owns the Canadian Malartic mine in northwestern Quebec and operates it through a joint management committee. Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership. All volume measures in this section reflect the Company’s 50% interest in the Canadian Malartic mine except as noted.
Canadian Malartic Mine - Operating Statistics Three Months Ended Three Months Ended June 30, 2017 June 30, 2016
| Tonnes of ore milled (thousands of tonnes) | 2,603 | 2,524 | ||
| Tonnes of ore milled per day | 28,612 | 27,736 | ||
| Gold grade (g/t) | 1.11 | 1.00 | ||
| Gold production (ounces) | 82,509 | 72,502 | ||
| Production costs per tonne (C$) | $27 | $21 | ||
| Minesite costs per tonne (C$) | $24 | $24 |
Production costs per ounce of gold produced ($ per ounce): $ 639 $ Total cash costs per ounce of gold produced ($ per ounce): $ 540 $
Production costs per tonne in the second quarter of 2017 increased when compared to the prior-year period due to timing of unsold inventory. Production costs per ounce in the second quarter of 2017 decreased when compared to the prior-year period due to higher production from higher gold grades. The mill had record throughput levels during the quarter largely due to increased volumes of softer ore being processed.
Minesite costs per tonne in the second quarter of 2017 were the same when compared to the prior-year period. Total cash costs per ounce in the second quarter of 2017 decreased when compared to the prior-year period due to higher production from higher gold grades.
Canadian Malartic Mine - Operating Statistics Six Months Ended Six Months Ended June 30, 2017 June 30, 2016
| Tonnes of ore milled (thousands of tonnes) | 5,036 | 4,905 | ||
| Tonnes of ore milled per day | 27,825 | 26,951 | ||
| Gold grade (g/t) | 1.07 | 1.04 | ||
| Gold production (ounces) | 153,891 | 146,115 | ||
| Production costs per tonne (C$) | $23 | $21 | ||
| Minesite costs per tonne (C$) | $23 | $24 |
Production costs per ounce of gold produced ($ per ounce): $ 554 $ Total cash costs per ounce of gold produced ($ per ounce): $ 548 $
Production costs per tonne for the first six months of 2017 increased when compared to the prior-year period due to timing of unsold inventory. Production costs per ounce for the first six months of 2017 decreased when compared to the prior-year period due to higher production from higher gold grades.
Minesite costs per tonne for the first six months of 2017 decreased when compared to the prior-year period due to higher throughput levels during the period. Total cash costs per ounce for the first six months of 2017 decreased when compared to the prior-year period due to the reasons described above.
On April 19, 2017, the Government of Quebec announced the issuance of two decrees authorizing the Partnership to carry out the proposed expansion of the Canadian Malartic mine and the deviation of Highway 117 in Malartic (collectively, the “Project”), which will allow the Partnership to access the Barnat deposit. The preparatory work for the Project will begin after obtaining the certificates of authorization from the Quebec Ministry of Sustainable Development, Environment and Climate Change.
Deviation plans include a temporary bridge over Highway 117 to minimize the impact of the construction work on local traffic. Tree clearing activities have started for the road deviation. The final certificate of authorization for the bridge construction is expected from the Quebec Ministry of Transport in the third quarter of 2017. Road construction is expected to take two years.
Additional expenditures in 2017 for preliminary work on the road deviation at the Canadian Malartic extension Project are expected to be between $16 to $22 million, (reflecting the Company’s 50% interest in the Canadian Malartic mine). The Company’s production guidance (see news release dated February 15, 2017) assumes a modest contribution from Barnat in late 2019.
Drilling at Odyssey Focused on Internal Zones and Infilling the South Zone
At the Canadian Malartic mine, exploration programs are ongoing to evaluate a number of near-pit/underground targets and the potential to mine portions of the East Malartic deposit, which is located adjacent to the Canadian Malartic mine. In addition, the Partnership continues to explore the Odyssey project, which is located approximately 1.5 kilometres east of the current limit of the Canadian Malartic open pit. These opportunities have the potential to provide new sources of ore for the Canadian Malartic mill, and studies are underway to further evaluate these prospects.
During the second quarter of 2017, 35 holes (totaling 25,759 metres) were drilled at Odyssey with a primary focus on further defining the internal mineralized zones between the Odyssey North and South Zones and expanding the mineral resources in Odyssey South. Drilling carried out to date suggests that these internal zones could increase the mineral resources and enhance the economics of the project by adding higher grade mineral resources that would require minimal additional infrastructure to access.
Canadian Malartic Corporation
In addition to the Partnership, each of Agnico Eagle and Yamana has an indirect 50% interest in Canadian Malartic Corporation ("CMC”) which holds a portfolio of exploration properties that includes properties in the Kirkland Lake area of Ontario and the Pandora property in the Abitibi region of Quebec.
At the Pandora property (adjacent to the Lapa mine), seven diamond drill holes (3,244 metres) have been completed in 2017, with a focus on the western portion of the property. Given that these holes have yielded low gold values, and the Lapa operations are winding down, the decision has been made to cease exploration activities from underground at Pandora.
In addition, CMC has retained financial advisors to evaluate strategic alternatives with respect to the Kirkland Lake property portfolio.
Lapa – Production now Expected to Extend to the end of the Third Quarter of 2017
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.
Lapa Mine - Operating Statistics Three Months Ended Three Months Ended June 30, 2017 June 30, 2016
| Tonnes of ore milled (thousands of tonnes) | 134 | 161 |
| Tonnes of ore milled per day | 1,474 | 1,769 |
| Gold grade (g/t) | 4.05 | 5.20 |
| Gold production (ounces) | 15,881 | 21,914 |
Production costs per tonne (C$) $ 118 $ Minesite costs per tonne (C$) $ 114 $ Production costs per ounce of gold produced ($ per ounce): $ 741 $ Total cash costs per ounce of gold produced ($ per ounce): $ 712 $
Production costs per tonne in the second quarter of 2017 were essentially the same when compared to the prior-year period. Production costs per ounce in the second quarter of 2017 increased when compared to the prior-year period due to lower production from lower grades.
Minesite costs per tonne in the second quarter of 2017 were essentially the same when compared to the prior-year period. Total cash costs per ounce in the second quarter of 2017 increased when compared to the prior-year period due to the reasons described above.