Agnico Eagle Reports Second Quarter 2018 Results; Production Guidance Increased for 2018; Amaruq Project Receives Permit Approval; Meliadine Project Progressing on Budget and on
Stock Symbol: AEM (NYSE and TSX)
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(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS SECOND QUARTER 2018 RESULTS; PRODUCTION GUIDANCE INCREASED FOR 2018; AMARUQ PROJECT RECEIVES PERMIT APPROVAL; MELIADINE PROJECT PROGRESSING ON BUDGET AND ON SCHEDULE; DRILLING CONTINUES TO EXTEND MINERALIZATION AT MULTIPLE MINE SITES
Toronto (July 25, 2018) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported quarterly net income of $5.0 million, or $0.02 per share, for the second quarter of 2018. This result includes a realized gain on asset disposals of $25.0 million ($0.11 per share) primarily related to the sale of the West Pequop Joint Venture, Summit and PQX properties in Nevada, non-cash foreign currency translation losses on deferred tax liabilities of $15.9 million ($0.07 per share), non-cash foreign currency translation losses of $3.9 million ($0.02 per share) and mark-to-market adjustments and derivative losses on financial instruments of $2.8 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $2.6 million or $0.01 per share for the second quarter of 2018. In the second quarter of 2017, the Company reported net income of $54.9 million or $0.24 per share.
Included in the second quarter of 2018 net income, and not adjusted above, is non-cash stock option expense of $3.8 million ($0.02 per share).
Income and mining taxes expense for the second quarter of 2018 was $35.4 million, or an effective tax rate of 88%. In the first six months of 2018, the income and mining taxes expense was $59.9 million, or an effective tax rate of 55%. These tax rates are higher than prior guidance partly due to the distribution of earnings by jurisdiction in the second quarter of 2018. The Company anticipates the overall effective tax rate to normalize over the remainder of 2018 to approximately 45% for the full year 2018.
In the first six months of 2018, the Company reported net income of $49.9 million, or $0.21 per share. This compares with the first six months of 2017, when net income was $130.8 million, or $0.57 per share.
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".
In the second quarter of 2018, cash provided by operating activities was $120.1 million ($159.5 million before changes in non-cash components of working capital), as compared with the second quarter of 2017 when cash provided by operating activities was $184.0 million in ($197.2 million before changes in non-cash components of working capital).
In the first six months of 2018, cash provided by operating activities was $327.8 million ($340.1 million before changes in non-cash components of working capital), as compared with the first six months of 2017 when cash provided by operating activities was $406.6 million ($421.2 million before changes in non-cash components of working capital).
The decrease in net income and cash provided by operating activities during the current quarter compared to the prior year period was mainly due to lower gold sales volumes and higher costs, partially offset by higher realized gold prices. Lower gold sales were as a result of expected lower gold production in the period primarily due to reduced throughput levels at Meadowbank as the mine transitions through the last full year of mining at site. The higher costs were principally a result of the strengthening of local currencies against the U.S. dollar and higher costs at several operations, principally at Meadowbank and Kittila.
"Our mines continued to deliver strong operational performance during the quarter, which has allowed us to increase 2018 production guidance to 1.58 million ounces of gold from 1.53 million ounces. Cash costs remained at the mid-point of our guidance, but we expect these costs to trend lower in the second half of the year", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "In the second quarter, we continued to make good progress on our development projects in Nunavut. We recently received the Type A water licence for the Whale Tail pit at Amaruq, which allowed us to begin construction in late July, and the shipping season is now underway at Meliadine, which should facilitate timely completion of the project allowing for the expected start of production in the second quarter of 2019" added Mr. Boyd.
Second quarter 2018 highlights include:
- Operational performance remains strong – Payable gold production2 in the second quarter of 2018 was 404,961 ounces at production costs per ounce of $750, total cash costs3 per ounce of $656 and all-in sustaining costs per ounce4 ("AISC") of $921
2Payable 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.
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".
- Production guidance increased for 2018 – Full year production guidance is now forecast to be 1.58 million ounces of gold compared to previous guidance of 1.53 million ounces of gold. Unit cost guidance is unchanged, with total cash costs per ounce of $625 to $675 and AISC of $890 to $940 per ounce. However, the Company expects total cash costs per ounce to trend lower in the second half of 2018
- Amaruq project receives permit approval – The Type A water licence for the Whale Tail pit was approved by the Minister of Crown-Indigenous Relations and Northern Affairs Canada on July 11, 2018. Preliminary construction work and stripping of the Whale Tail pit began in late July, as expected, and the Whale Tail deposit remains on schedule and budget for the start of production in the third quarter of 2019
- Meliadine project proceeding on schedule and on budget; step-out drilling extends Tiriganiaq mineralization – The 2018 shipping season is underway at Meliadine and development activities remain on track for the expected commencement of production in the second quarter of 2019. A recent drill hole returned 27.3 grams per tonne ("g/t") gold over 12.8 metres at 483 metres depth. This hole is expected to extend the inferred mineral resources envelope at Tiriganiaq
- Akasaba West Project receives Federal and Provincial authorization – The Company will now proceed with applications for the Mining Lease and Certificates of Authorization. The Company is reviewing the timeline for the integration of the Akasaba West project into the Goldex production profile
- LaRonde Zone 5 (LZ5) declares commercial production and Lapa mine life extended until the fourth quarter of 2018 – LZ5 declared commercial production on June 1, 2018. In order to maximize production, ore from LZ5 will be batch processed with ore from Lapa until the end of 2018
- A quarterly dividend of $0.11 per share was declared
Second Quarter Financial and Production Highlights
In the second quarter of 2018, strong operational performance continued at the Company's mines, which led to payable gold production of 404,961 ounces, compared to 427,743 ounces in the second quarter of 2017. In the first six months of 2018, payable gold production was 794,239 ounces, compared to 845,959 ounces in the 2017 period.
The lower level of production in the second quarter of 2018 and the first six months of 2018, when compared with the prior-year periods, was primarily due to reduced throughput levels at Meadowbank as the mine transitions through the last full year of mining at site. A detailed description of the production of each mine is set out below.
Production costs per ounce for the second quarter of 2018 were $750, compared to $634 in the prior-year period. Total cash costs per ounce for the second quarter of 2018 were $656, compared to $556 per ounce in the prior-year period.
Production costs per ounce in the first six months of 2018 were $754, compared to $606 in the prior-year period. Total cash costs per ounce in the first six months of 2018 were $652, compared with $548 in the prior-year period.
Production costs per ounce and total cash costs per ounce in the second quarter of 2018 and the first six months of 2018, when compared to the prior-year periods, were negatively affected by lower gold production levels at Meadowbank, the strengthening of local currencies against the U.S. dollar and higher costs at several mines (principally at Meadowbank and Kittila). The impact of the strengthening of local currencies compared to the second quarter of 2017 was approximately $23 per ounce.
AISC for the second quarter of 2018 were $921 per ounce, compared to $785 in the prioryear period. The higher AISC is primarily due to expected lower gold production and higher total cash costs per ounce compared to the second quarter of 2017.
AISC in the first six months of 2018 were $906 per ounce, compared to $764 in the prioryear period. The higher AISC is primarily due to the same reasons as described above. A detailed description of the cost performance of each mine is set out below.
Cash Position Remains Strong
Cash and cash equivalents and short term investments increased to $721.2 million at June 30, 2018, from the March 31, 2018 balance of $464.8 million.
The outstanding balance on the Company's credit facility remained nil at June 30, 2018. This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
On April 5, 2018, the Company issued notes to certain institutional investors totalling $350 million. The notes consist of $45 million at 4.38% due 2028, $55 million at 4.48% due 2030 and $250 million at 4.63% due 2033. The terms of the notes are substantially the same as the terms of the outstanding notes of the Company. The Company previously announced the issuance of these notes in its news release dated April 26, 2018. During the quarter, DBRS Limited changed the trend on the Company’s investment grade credit rating to Positive from Stable and confirmed the rating at BBB (low).
Approximately 56% of the Company's remaining 2018 Canadian dollar exposure is hedged at an average floor price of 1.28 C$/US$, of which approximately one third are designated for capital expenditures at Meliadine. Approximately 48% of the Company's remaining 2018 Mexican peso exposure is hedged at an average floor price of 19.00 MXN/US$. Approximately 8% of the Company’s remaining 2018 Euro exposure is hedged at a rate of 1.20. The Company’s full year 2018 cost guidance was based on assumed exchange rates of 1.25 C$/US$, 18.00 MXN/US$ and 1.20 US$/EUR. Agnico Eagle anticipates adding to its operating currency hedges, subject to market conditions.
Approximately 20% of the Company's diesel exposure relating to the Nunavut operations for the July 2018 to July 2019 consumption period is hedged at prices better than the 2018 cost guidance assumption of C$0.80 per litre. Agnico Eagle anticipates adding to its diesel hedges, subject to market conditions.
Capital Expenditures
Total capital expenditures (including sustaining capital) in 2018 remain forecast to be approximately $1.08 billion. The following table sets out capital expenditures (including sustaining capital) in the second quarter and first six months of 2018.
Capital Expenditures (In thousands of US dollars)
Three Months Ended Six Months Ended June 30, 2018 June 30, 2018 Sustaining Capital
LaRonde mine $ 18,215 $ 33,612
| LaRonde Zone 5 | 539 | 539 |
| Canadian Malartic mine | 13,172 | 29,290 |
| Meadowbank mine | 9,225 | 12,115 |
| Kittila mine | 13,670 | 23,468 |
| Goldex mine | 5,303 | 10,415 |
| Pinos Altos mine | 11,150 | 18,325 |
| Creston Mascota mine | 1,224 | 1,726 |
| La India mine | 1,494 | 2,924 |
Total Sustaining Capital $ 73,992 $ 132,414
Development Capital
LaRonde mine $ 1,093 $ 1,935
| LaRonde Zone 5 | 7,448 | 15,001 |
| Canadian Malartic mine | 6,070 | 11,281 |
| Amaruq satellite deposit | 28,467 | 43,443 |
| Kittila mine | 24,732 | 43,311 |
| Goldex mine | 8,229 | 16,541 |
| Pinos Altos mine | 246 | 284 |
| Creston Mascota mine | 6,889 | 9,950 |
| La India mine | 182 | 743 |
| Meliadine project | 109,124 | 170,454 |
| Other | 1,158 | 1,600 |
Total Development Capital $ 193,638 $ 314,543
Total Capital Expenditures $ 267,630 $ 446,957
Revised 2018 Guidance – Production Increased
Production for 2018 is now forecast to be 1.58 million ounces of gold (previously 1.53 million ounces). Unit cost guidance is unchanged with total cash costs per ounce of $625 to $675 and AISC of $890 to $940 per ounce. However, the Company expects total cash costs to trend lower in the second half of 2018.
2018 Tax Guidance
The Company anticipates the overall effective tax rate to normalize over the remainder of 2018 and expects the overall tax rate to be near the higher end of the previous guidance range of 40% to 45% for the full year 2018.
As previously outlined in the Company’s news release dated February 14, 2018, the Company expects its effective tax rates by jurisdiction for the full year 2018 to be:
Canada - 40% to 50% Mexico - 35% to 40% Finland - 20%
Dividend Record and Payment Dates for the Third Quarter of 2018
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.11 per common share, payable on September 14, 2018, to shareholders of record as of August 31, 2018. Agnico Eagle has declared a cash dividend every year since 1983.
Other Expected Dividend and Record Dates for 2018
| Record Date | Payment Date |
| November 30 | December 14 |
Dividend Reinvestment Plan
Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
Second Quarter 2018 Results Conference Call and Webcast Tomorrow
The Company's senior management will host a conference call on Thursday, July 26, 2018 at 11:00 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 3680786. The conference call replay will expire on August 26, 2018. 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 the LaRonde, Goldex, Lapa and LaRonde Zone 5 mines 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 – Higher Gold Grades Continue to Drive Increased Quarterly Production
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, 2018 June 30, 2017
| Tonnes of ore milled (thousands of tonnes) | 507 | 520 |
| Tonnes of ore milled per day | 5,571 | 5,708 |
| Gold grade (g/t) | 5.46 | 4.51 |
| Gold production (ounces) | 84,526 | 72,090 |
Production costs per tonne (C$) $ 158 $ Minesite costs per tonne (C$) $ 120 $ Production costs per ounce of gold produced ($ per ounce): $ 744 $ Total cash costs per ounce of gold produced ($ per ounce): $ 395 $
Production costs per tonne in the second quarter of 2018 increased when compared to the prior-year period due to higher underground and mill maintenance costs, lower tonnage and the timing of unsold concentrate inventory. The higher mill maintenance costs were primarily related to an unscheduled five-day mill shutdown in second quarter of 2018. Production costs per ounce in the second quarter of 2018 increased when compared to the prior-year period due to the reasons described above and the strengthening of the Canadian dollar relative to the U.S. dollar between periods, partially offset by higher production.
Minesite costs per tonne5 in the second quarter of 2018 increased when compared to the prior-year period due to higher underground and mill maintenance costs and lower tonnage. Total cash costs per ounce in the second quarter of 2018 decreased when compared to the prior-year period due to higher production and by-product metal revenues, partially offset by higher underground and mill maintenance costs and the strengthening of the Canadian dollar relative to the U.S. dollar between periods.
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.
Gold production in the second quarter of 2018 increased when compared to the prior-year period due to higher grades resulting from the mining sequence in the western pyramid in the lower part of the mine.
LaRonde Mine - Operating Statistics Six Months Ended Six Months Ended June 30, 2018 June 30, 2017
| Tonnes of ore milled (thousands of tonnes) | 1,038 | 1,079 |
| Tonnes of ore milled per day | 5,735 | 5,960 |
| Gold grade (g/t) | 5.48 | 4.56 |
| Gold production (ounces) | 174,311 | 151,002 |
Production costs per tonne (C$) $ 156 $ Minesite costs per tonne (C$) $ 120 $ Production costs per ounce of gold produced ($ per ounce): $ 733 $ Total cash costs per ounce of gold produced ($ per ounce): $ 412 $
Production costs per tonne in the first six months of 2018 increased when compared to the prior-year period due to higher underground and mill maintenance costs, lower tonnage and the timing of unsold concentrate inventory. The higher mill maintenance costs were primarily related to an unscheduled five-day mill shutdown in second quarter of 2018. Production costs per ounce in the first six months of 2018 increased when compared to the prior-year period due to the reasons described above and the strengthening of the Canadian dollar relative to the U.S. dollar between periods, partially offset by higher production.
Minesite costs per tonne in the first six months of 2018 increased when compared to the prior-year period due to higher underground and mill maintenance costs and lower tonnage. Total cash costs per ounce in the first six months of 2018 decreased when compared to the prior-year period due to higher production and by-product metal revenues, partially offset by higher underground and mill maintenance costs and the strengthening of the Canadian dollar relative to the U.S. dollar between periods.
Gold production in the first six months of 2018 increased when compared to the prior-year period due to higher grades resulting from the mining sequence in the western pyramid in the lower part of the mine.
Drilling is ongoing at LaRonde 3 with a focus on mineral resource conversion to mineral reserves. The Company continues to evaluate a phased approach to development between the 311 level (a depth of 3.1 kilometres) and the 350 level (a depth of 3.5 kilometres).
Under this phased approach, an additional two or three levels will be developed per year in either the east or west areas of the mine through 2022. This is expected to result in the conversion of mineral resources into mineral reserves, with full mining activities to commence in 2022. The Company believes that this phased approach is a lower risk, less capital intensive option for developing the deeper levels of the LaRonde mine.
LaRonde Zone 5 – Commercial Production Declared; Operations Continue to Ramp Up
In 2003, the Company acquired the LaRonde Zone 5 project (LZ5). The property lies adjacent to and west of the LaRonde mining complex and previous operators exploited the deposit by open pit. In February 2017, LZ5 was approved by Agnico Eagle's Board of Directors for development.
In the first quarter of 2018, development of the first five mining stopes was essentially completed and the first production blast was carried out in May 2018. Three stopes were blasted by the end of the second quarter of 2018 and a total of 45,200 tonnes of ore (stopes and development) were mined. Commercial production was achieved on June 1, 2018, coincident with the start of processing LZ5 ore at the Lapa mill circuit. In addition, the paste plant was commissioned in the second quarter of 2018.
LaRonde Zone 5 Mine - Operating Statistics Three Months Ended June 30, 2018
Tonnes of ore milled (thousands of tonnes) 56 Tonnes of ore milled per day 1,867 Gold grade (g/t) 2.75 Gold production (ounces) 4,601 Production costs per tonne (C$) $ 12 Minesite costs per tonne (C$) $ 85 Production costs per ounce of gold produced ($ per ounce): $ Total cash costs per ounce of gold produced ($ per ounce): $
Production costs per tonne in the second quarter of 2018 were $12. Production costs per ounce in the second quarter of 2018 were $113. Minesite costs per tonne in the second quarter of 2018 were C$85. Total cash costs per ounce in the second quarter of 2018 were $796. Gold production in the second quarter of 2018 was 4,601 ounces of gold.
Currently, a fourth stope is in production and 36,500 tonnes of ore is stockpiled on surface. Mining will continue at LZ5 over the balance of 2018, but in order to maximize production (tonnage and ounces), ore from LZ5 will be batch processed with ore from Lapa until the end of 2018. Gold production from LZ5 in 2018 is now forecast to be approximately 15,000 ounces (previous guidance was 20,000 ounces), with 2018 total cash costs per ounce expected to be in line with those reported in the second quarter of 2018.
One production truck arrived at site in the second quarter of 2018. Additional production equipment (one truck and one scoop tram) and the required material for automated mining at LZ5 are expected to be delivered in the third quarter of 2018. Pilot testing is expected to start in the fourth quarter of 2018 for both trucks and the scoop tram. Ultimately, the Company is examining the potential to use the same LTE network that was developed at LZ5 and the automated mining equipment at LaRonde 3.
Under the current LZ5 mine plan, a total of approximately 350,000 ounces of gold are expected to be mined through 2026. The Company is evaluating the potential to extend operations at depth and along strike onto the Ellison property, which adjoins LZ5 to the west. Ellison hosts an indicated mineral resource of 68,000 ounces (651,000 tonnes grading 3.25 g/t gold) as of December 31, 2017.
Canadian Malartic Mine – New Quarterly Record for Gold Production and Mill Throughput
In June 2014, Agnico Eagle and Yamana Gold Inc. acquired Osisko Mining Corporation and created the Canadian Malartic General Partnership (the "Partnership"). The Partnership owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee. Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership. All volume numbers 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, 2018 June 30, 2017
| Tonnes of ore milled (thousands of tonnes)(100%) | 5,266 | 5,206 | ||
| Tonnes of ore milled per day (100%) | 57,868 | 57,209 | ||
| Gold grade (g/t) | 1.23 | 1.11 | ||
| Gold production (ounces)(50%) | 91,863 | 82,509 | ||
| Production costs per tonne (C$) | $25 | $27 | ||
| Minesite costs per tonne (C$) | $25 | $24 |
Production costs per ounce of gold produced ($ per ounce): $ 550 $ Total cash costs per ounce of gold produced ($ per ounce): $ 537 $
Production costs per tonne in the second quarter of 2018 decreased when compared to the prior-year period due to a decrease in contractor costs and higher throughput, partially offset by higher fuel costs. Production costs per ounce in the second quarter of 2018 decreased when compared to the prior-year period due to higher production and the reasons described above, partially offset by higher fuel costs and the strengthening of the Canadian dollar relative to the U.S. dollar between periods.
Minesite costs per tonne in the second quarter of 2018 were essentially the same when compared to the prior-year period. Total cash costs per ounce in the second quarter of 2018 decreased when compared to the prior-year period due to a decrease in contractor costs and higher production, partially offset by higher fuel costs and the strengthening of the Canadian dollar relative to the U.S. dollar between periods.
Gold production in the second quarter of 2018 increased when compared to the prior-year period due to higher throughput and higher grades, partially offset by slightly lower gold recoveries.
Canadian Malartic Mine - Operating Statistics Six Months Ended Six Months Ended June 30, 2018 June 30, 2017
| Tonnes of ore milled (thousands of tonnes)(100%) | 10,286 | 10,072 | ||
| Tonnes of ore milled per day (100%) | 56,829 | 55,646 | ||
| Gold grade (g/t) | 1.20 | 1.07 | ||
| Gold production (ounces)(50%) | 175,266 | 153,891 | ||
| Production costs per tonne (C$) | $24 | $23 | ||
| Minesite costs per tonne (C$) | $25 | $23 |
Production costs per ounce of gold produced ($ per ounce): $ 558 $ Total cash costs per ounce of gold produced ($ per ounce): $ 551 $
Production costs per tonne in the first six months of 2018 were essentially the same when compared to the prior-year period. Production costs per ounce in the first six months of 2018 increased when compared to the prior-year period due higher fuel costs and the strengthening of the Canadian dollar relative to the U.S. dollar between periods.
Minesite costs per tonne in the first six months of 2018 increased slightly when compared to the prior-year period due to higher fuel costs, partially offset by higher throughput. Total cash costs per ounce in the first six months of 2018 increased when compared to the prioryear period due to the reasons described above and the strengthening of the Canadian dollar relative to the U.S. dollar between periods.
Gold production in the first six months of 2018 increased when compared to the prior-year period due to higher throughput and higher grades, partially offset by slightly lower gold recoveries.
Work on the Barnat extension project is proceeding on budget and on schedule. Work is primarily focused on the highway 117 road deviation, pit preparation and tailings expansion. Production activities at Barnat are scheduled to begin in 2019.
Infill and Resource Development Drilling Continues at Odyssey Project
At the Canadian Malartic mine, exploration programs are ongoing to evaluate several nearpit and underground targets. In addition, the Partnership is exploring the deposits to the east of the Canadian Malartic open pit including the Odyssey, East Malartic, Sladen and Sheehan zones. These opportunities have the potential to provide new sources of ore for the Canadian Malartic mill. The 2018 exploration program will consist of 140,000 metres of drilling (100% basis) with a budgeted cost of $8.6 million (50% basis).
In the second quarter of 2018, 23,726 metres of drilling (49 holes) was completed at the Odyssey Zone and 27,549 metres of drilling (41 holes and 12 deviation wedges) was completed at the East Malartic and Sheehan zones.
Lapa – Operations Now Expected to Extend into the Fourth Quarter of 2018
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.