(All amounts
expressed in U.S. dollars unless otherwise noted)
AGNICO-EAGLE
REPORTS Q1 2010 RESULTS;
RECORD QUARTERLY REVENUE AND GOLD PRODUCTION;
MEADOWBANK MINE ACHIEVES COMMERCIAL PRODUCTION
Toronto, ON - April 29, 2010 �
Agnico-Eagle Mines Limited (TSX: AEM / NYSE: AEM)
("Agnico-Eagle" or the �Company�) today reported
quarterly net income of $22.3 million, or $0.14 per share, for the first
quarter of 2010. This result includes a non-cash foreign currency
translation loss of $8.9 million, or $0.06 per share, as well as a
non-cash stock-based compensation expense of $17.3 million, or $0.11 per
share. In the first quarter of 2009, the Company reported net
income of $54.3 million, or $0.35 per share. A 105% increase in
gold production and a similar increase in gross mine profit were more
than offset by non-cash foreign currency translation losses, increased
depreciation, non-cash stock-based compensation and the deferred tax
provision .
First quarter 2010 cash provided by
operating activities was $74.5 million (including an increase in working
capital of $18.0 million), up from cash provided by operating activities
of $48.8 million in the first quarter of 2009 (which included a decrease
in working capital of $7.6 million). This increase was largely due
to gold production that was more than double that in the comparable
period in 2009 and significantly higher metal prices for gold, zinc,
silver and copper.
�Strong operating earnings and cash
flows are being generated from our six gold mines. Three of the
mines are now operating at steady state and the other three are in the
stage of final commissioning and optimization� said Sean Boyd,
Vice-Chairman and Chief Executive Officer. �With internal
expansions being studied for Pinos Altos, Meadowbank and Kittila, we are
well positioned to continue to increase our gold reserves, gold
production, earnings and cash flows. Each of these important
performance metrics should continue to grow on a per share basis� added
Mr. Boyd.
First quarter 2010 highlights include:
� Six Operating Gold Mines � with the Meadowbank
mine declaring commercial production as of March 1, 2010, Agnico-Eagle
now has a portfolio of six operating mines
� Record Gold Production
� record quarterly production of 188,232 ounces, despite a longer than
expected maintenance shutdown at Kittila
� Good Cost Control
Continues � minesite costs per tonne continue to be on
target at the steady state mines; LaRonde, Goldex and Lapa.
� Improved Available
Liquidity - subsequent to quarter end, issued $600,000,000
of unsecured long-term notes with all proceeds used to reduce amounts
outstanding under the existing credit lines
Payable gold production1
in the first quarter of 2010 was a record 188,232 ounces at total cash
costs per ounce of $443. This compares with payable gold
production of 91,812 ounces at total cash costs per ounce of $312 in the
first quarter of 2009. The increase in total cash costs per ounce
in the first quarter of 2010 is mainly due to the higher costs at Kittila
and Meadowbank as will be discussed in subsequent sections, and a
stronger Canadian dollar, offset somewhat by a significant increase in
gold production.
For full year 2010, both gold production
and total cash costs are still expected to be in line with previous
guidance of between 1.0 and 1.1 million ounces and $399 per ounce,
respectively.
First Quarter 2010 Results Conference
Call Webcast
The Company�s senior management will
host a conference call on Friday, April 30, 2010 at 8:30 AM (E.S.T.) to discuss
financial results and provide an update of the Company�s exploration and
development activities.
Via Webcast:
A
live audio webcast of the meeting will be available on the Company�s
website homepage at www.agnico-eagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 416-644-3417
or Toll-free 877-974-0446. To ensure your participation, please
call approximately five minutes prior to the scheduled start of the call.
Replay archive:
Please dial 416-640-1917 or Toll-free 877-289-8525, access code
4282479#.
The conference call replay will expire on Friday May 7, 2010.
The webcast along with presentation
slides will be archived for 180 days on the website.
Annual and Special General Meeting
(�AGM�)
The AGM will begin on Friday, April
30, 2010 at 11:00 am
(E.S.T.). The meeting will be held at Le
Meridien King Edward Hotel, Vanity Ballroom located at 37 King Street
East, Toronto, Canada. During the meeting we will provide an
overview of our strategy and growth objectives and our operating and
financial results for the first quarter. For those unable to attend
in person, please see alternative listed below.
Via Telephone:
For
those preferring to listen in only by telephone, please dial 416-644-3414
or Toll-free 800-814-4859. To ensure your participation, please
call approximately five minutes prior to the scheduled start of the
call.
Replay archive:
Please dial 416-640-1917 or Toll-free 877-289-8525, access code
4278072#.
The conference call replay will expire on Friday May 7, 2010.
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Note Regarding Certain Measures Of Performance
This press release presents measures including
"total cash costs per ounce" and "minesite costs per
tonne" that are not recognized measures under US GAAP. This data
may not be comparable to data presented by other gold producers. The
Company believes that these generally accepted industry measures are
realistic indicators of operating performance and useful for
year-over-year comparisons. However, both of these non-GAAP measures
should be considered together with other data prepared in accordance
with US GAAP, these measures, taken by themselves, are not necessarily
indicative of operating costs or cash flow measures prepared in
accordance with US GAAP. A reconciliation of the Company's total cash
cost per ounce and minesite cost per tonne to the most comparable
financial measures calculated and presented in accordance with US GAAP
for the Company's historical results of operations is set out in Note 1
to the financial statements of the Company for the period ended March
31, 2010 contained herein.
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