AGNICO-EAGLE REPORTS FIRST QUARTER 2011 RESULTS
Mines Limited (Stock Symbol: AEM (NYSE and TSX))
("Agnico-Eagle" or the "Company") today reported quarterly net
income of $45.3 million, or $0.27 per share for the first quarter of
2011. This result includes a non-cash foreign currency translation
loss of $14.1 million, or $0.08 per share, stock option expense of $18.5
million, or $0.11 per share, an expense of $3.1 million, or $0.02 per
share related to the March 10, 2011 Meadowbank
fire, and a gain on sale of investments of $4.4 million, or $0.03 per
Excluding these items would result in adjusted net income of $76.5
million, or $0.45 per share. In the first quarter of 2010, the
Company reported net income of $22.3 million, or $0.14 per share.
2011 cash provided by operating activities was $171.0 million ($146.9
million before changes in non-cash components of working capital), up
from cash provided by operating activities of $74.5 million in the first
quarter of 2010 ($92.5 million before changes in non-cash components of
net income and cash provided by operating activities in 2011 was
primarily due to 34% higher gold production and significantly higher
metal prices when compared to the first quarter of 2010.
to a quick response by the team at Meadowbank,
the damage caused by the recent fire was limited and we are already back
running at full capacity at the mine," said Sean Boyd, Vice-Chairman
and Chief Executive Officer.
"On the back of record production quarters at our Pinos Altos and Kittila
mines, and with the expected commissioning of the permanent secondary
crusher at Meadowbank in the third quarter, we
expect to have all six of our mines operating at a steady state as we
head into the second half of the year. It is expected that gold
production in the second half of this year should be approximately 20
percent higher than in the first half of 2011," added Mr. Boyd.
First quarter highlights include:
Quarterly Gold Output at Kittila -
record quarterly recovery of 86.4%, and gold production of 40,317
Operating Quarter at Pinos Altos -
record quarterly gold production of 48,001 ounces at total cash
costs of $312 per ounce1. Commercial production declared
at Creston Mascota
at March 1, 2011
Cash Generation - record quarterly cash
provided by operating activities of $171 million, or $1.01 per share
Mineralization Extended at Kittila, Goldex, Lapa and Meliadine - details in today's
separate exploration news release
production2 in the first quarter of 2011 was 252,362 ounces
compared to 188,232 ounces in the first quarter of 2010. A
description of the production and cost performance for each mine is set
out further below.
level of production in the 2011 period was largely due to production at
the Meadowbank mine, which achieved commercial
production in March 2010 and therefore only contributed one month to the
first quarter total last year. The increase in gold production in
2011 was in spite of the fire which destroyed the Meadowbank
kitchen complex and also in spite of unusually severe winter
conditions. These factors negatively impacted production and costs,
as disclosed in the Company's news releases of March 10 and March 28,
costs for the first quarter of 2011 were $531 per ounce. This
compares with $441 per ounce in the first quarter of 2010. The
higher cost in 2011 was largely attributable to the issues at Meadowbank which more than offset the positive impact
of higher byproduct metals prices.
Quarter 2011 Results Conference Call and Webcast Tomorrow
senior management will host a conference call on Friday, April 29, 2011
at 8:30 AM (E.D.T.) to discuss financial results and provide an update of
the Company's exploration and development activities.
A live audio
webcast of the meeting will be available on the Company's website
homepage at www.agnico-eagle.com.
preferring to listen by telephone, please dial 416-644-3416 or Toll-free
800-814-4859. To ensure your participation, please call
approximately five minutes prior to the scheduled start of the call.
416-640-1917 or Toll-free 877-289-8525, access code 4428706#.
The conference call replay will expire on May 29, 2011.
The webcast along with presentation slides will be archived for 180 days
on the website.
Position Remains Strong
Cash and cash
equivalents increased to $114.8 million at March 31, 2011, up slightly
from the December 31, 2010 balance of $104.6 million, as higher cash
flows in 2011 allowed the full repayment of the Company's bank
expenditures in the first quarter of 2011 were $96.8 million, including
$22.9 million at Kittila, $20.3 million at Meadowbank, $19.7 million at LaRonde,
$15.9 million at Pinos Altos, $11.9 million on Goldex and $5.0 million at Lapa.
current cash balances, anticipated cash flows and available bank lines, management
believes that Agnico-Eagle remains fully funded for the development and
exploration of its current pipeline of gold projects in Canada, Finland,
Mexico and the USA.
bank lines as of March 31, 2011 were approximately $1.2 billion.
PRESS RELEASE CONTAINS TABLES AND FINANCIAL STATEMENTS, CLICK HERE TO VIEW THE ENTIRE DOCUMENT IN
Pinos Altos Tour
will be hosting a trip for equity analysts and buy-side investors on May
19, 2011 to Pinos Altos in northern
Mexico. A charter plane will depart Toronto in the afternoon of May
18. After overnight in Chihuahua, small planes will take participants
to site and back on May 19, with return to Toronto that evening.
Interested parties should contact Adriana Trlin
at email@example.com, or 416-947-1212 x3747.
Space is extremely limited. All presentation materials will also be
posted on the Company's website.
Meadowbank and Meliadine
will be hosting a trip for equity analysts and buy-side investors on June
28, 2011 to Meadowbank.
The tour will include a project review of Meliadine
while at the Meadowbank site. The tour will be
a day trip via chartered airplane from Toronto. Interested parties
should contact Adriana Trlin at firstname.lastname@example.org, or 416-947-1212 x3747. All presentation
materials will also be posted on the Company's website.
29, 2011 at 11:00am
Vanity Fair Ballroom
Le M�ridien King Edward Hotel
37 King Street East
Toronto, ON M5C 1E9
Record and Payment Dates for the Remainder of 2011
the link below for information on the Company's dividend reinvestment
Mines Limited is
a long established, Canadian headquartered, gold producer with operations
located in Canada, Finland and Mexico, and exploration and development
activities in Canada, Finland, Mexico and the United States. The
Company has full exposure to higher gold prices consistent with its
policy of no forward gold sales and maintains a corporate strategy based
on increasing shareholders exposure to gold, on a per share basis.
It has paid a cash dividend for 29 consecutive years. www.agnico-eagle.com
1 Total cash costs per ounce is a non-GAAP measure. For
a reconciliation to production costs, see Note 1 to the financial
statements. See also "Note Regarding Certain Measures of
2 Payable 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.