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Agnico Eagle Mines Limited Message Board

  • bluecheese4u bluecheese4u Oct 24, 2012 7:34 PM Flag

    Agnico-Eagle Reports Record Operating and Financial Results for the Third Quarter of 2012; Increases Full Year 2012 Production Guidance

    Agnico-Eagle Reports Record Operating and Financial Results for the Third Quarter of 2012; Increases Full Year 2012 Production Guidance

    10/24/2012

    Download this Press Release (PDF 216 KB)

    (All amounts expressed in U.S. dollars unless otherwise noted)

    Stock Symbol: AEM (NYSE and TSX)

    TORONTO, Oct. 24, 2012 /CNW/ - Agnico-Eagle Mines Limited (NYSE:AEM)(TSX:AEM) ("Agnico-Eagle" or the "Company") today reported quarterly net income of $106.3 million, or $0.62 per share, for the third quarter of 2012. These results include a non-cash foreign currency translation loss of $16.3 million, or $0.10 per share, stock option expense of $7.1 million, or $0.04 per share and other non-recurring items totaling a loss of $1.8 million, or $0.01 per share. Excluding these items would result in adjusted net income of $131.5 million, or $0.77 per share. In the third quarter of 2011, the Company reported a net loss of $81.6 million, or a loss of $0.48 per share.

    For the first nine months of 2012, net income was $228.1 million, or $1.33 per share. This compares with the first nine months of 2011 when net income was $32.5 million, or $0.19 per share.

    Cash flow generation was strong as third quarter 2012 cash provided by operating activities was a record $199.5 million ($223.9 million before changes in non-cash components of working capital), essentially unchanged from the cash provided by operating activities of $197.6 million in the third quarter of 2011 ($213.5 million before changes in non-cash components of working capital).

    For the first nine months of 2012, cash provided by operating activities was a record $590.0 million as compared with the first nine months of 2011, when cash provided by operating activities was $535.2 million.

    The higher net income and cash provided by operating activities in the 2012 periods were primarily due to significantly stronger gold production and good cost performance at several of the operating mines, in particular at Meadowbank in Nunavut.

    "Continued strong operating performance during the third quarter has resulted in a further strengthening of our financial position. In addition to steady production from all of our mines, and in particular record gold output at Meadowbank and Kittila, we are pleased to announce an increase in our full year production forecast with an associated reduction in the total cash cost estimate," said Sean Boyd , President and Chief Executive Officer.

    Third quarter highlights include:
    •Record Quarterly Production and Improved Costs at Meadowbank - record quarterly gold production of 110,988 ounces at total cash costs1 per ounce of $734
    •Record Quarterly Production and Improved Costs at Kittila - record quarterly gold production of 48,619 ounces at total cash costs per ounce of $478
    •Significant Improvements in Overall Cost Profile - total cash costs per ounce of $556
    •Record Quarterly Cash Generation - quarterly cash provided by operating activities of $199.5 million, or $1.16 per share
    •Lower Production in 2013 at Creston Mascota - movement of ore on leach pad results in temporary suspension of production at Creston Mascota. To begin ramp up in second quarter 2013

    Payable gold production1 in the third quarter of 2012 was a record 286,971 ounces compared to 265,978 ounces in the third quarter of 2011. A description of the production and cost performance for each mine is set out further below.

    The high level of production in the third quarter of 2012 period was largely due to higher grades at LaRonde, Kittila, Meadowbank and Pinos Altos, as well as record throughput at Meadowbank.

    In the first nine months of 2012, payable gold production was a record 807,276 ounces. This compares with the first nine months of 2011 when payable gold production was 757,668 ounces. Nine month gold production in 2011 included 120,722 ounces from the Goldex mine, where mining operations have been suspended since October 2011.

    Total cash costs for the third quarter of 2012 were $556 per ounce. This compares with $563 per ounce in the third quarter of 2011 ($580 per ounce from the currently operating mines). The improvement in total cash costs at the operating mines in 2012 is largely the result of significant per ounce cost reductions at Meadowbank, Kittila and Pinos Altos, partially offset by higher costs at LaRonde (which are mainly associated with lower by-product revenues, as planned).

    For the first nine months of 2012, total cash costs were $602 per ounce. This compares with $553 per ounce in the first nine months of 2011 ($580 per ounce from currently operating mines). The slight increase in 2012 is primarily due to significantly lower by-product revenues at the LaRonde mine.

    Given the strong performance through the first nine months of 2012, especially at Meadowbank, Agnico-Eagle is increasing its full year production guidance from 975,000 ounces of gold to approximately 1,025,000 ounces of gold. Total cash costs per ounce are expected to be approximately $660, down from the previously provided estimate of $690. This updated forecast, while considering the better than expected operating performance year to date, also includes consideration of fourth quarter scheduled mill maintenance at Kittila, the operating challenges at LaRonde and Creston Mascota, and the expectation of a lower grade cycle at Meadowbank.

    Additionally, Agnico-Eagle's management expects to produce approximately 990,000 ounces of gold in 2013, unchanged from prior forecasts. In this forecast, the improved operating performance at Meadowbank is expected to continue into 2013 and is expected to offset lower than previously forecast production from LaRonde and Creston Mascota. A detailed forecast for all the mines is expected to be released in mid-February 2013, following Board approval of the three year plan.

    In 2014 and 2015, the Company is expected to realize organic production growth from the new La India mine, the restart of Goldex (M and E zones), higher gold grades at LaRonde and continued operating strength at Meadowbank.

    _______________________

    1 Total cash cost per ounce is a non-GAAP measure. For reconciliation to production costs, see footnote (ii) to the "Reconciliation of production costs to Total Cash Costs per Ounce and Minesite Costs per Tonne" contained herein. See also "Note Regarding Certain Measures of Performance". 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.

    Third Quarter 2012 Results Conference Call and Webcast Tomorrow

    The Company's senior management will host a conference call on Thursday, October 25, 2012 at 11:00 AM (E.D.T.)

    agnico-eagle

 
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