Agnico-Eagle reports second quarter and provides LaRonde exploration update.Stock Symbols: AGE (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME) AEM AEM Applied and Environmental Microbiology (journal) AEM Association of Equipment Manufacturers AEM Academic Emergency Medicine (journal) AEM Agnico-Eagle Mines Limited AEM Advanced Engine Management (NYSE NYSE See: New York Stock Exchange ) TORONTO, July 28 /CNW-PRN/ - Agnico-Eagle Mines Limited today reported a net loss of US$2.9 million, or US$0.05 per share for the quarter ended June 30, 1999 compared to a net loss of US$2.0 million, or US$0.04 per share in the same period last year. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. declined in the second quarter to a deficit of US$0.8 million, or US$0.02 per share, compared to cash flow of US$0.3 million, or US$0.01 per share in the 1998 second quarter. While financial and operating results met the Company's budget objectives for the quarter, earnings and cash flows were weaker than those in 1998 due to a lower gold price and decreased gold production, partially offset by an improved operating cost performance at the mine. ``Our expansion to 5,000 TPD TPD Tons Per Day TPD Therapeutic Products Directorate TPD Total and Permanent Disablement (insurance) TPD Temperature Programmed Desorption TPD Temporary Partial Disability (insurance) is progressing well as mining of the Shaft shaft (shaft) a long slender part, such as the diaphysis of a long bone. shaft n. 1. An elongated rodlike structure, such as the midsection of a long bone. 2. No. 3 zones has begun and a mill test of development ore has returned higher recovered gold grades than indicated by drilling and chip sampling,'' said Sean Boyd, Agnico-Eagle's President and Chief Executive Officer. ``In addition, drilling on the recently acquired El Coco property adjacent to LaRonde has extended Zone 20 South and encountered high grade gold and zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. values,'' added Mr. Boyd. OPERATING RESULTS Onsite operating costs operating costs npl → gastos mpl operacionales improved by 10 percent in the second quarter to C$60 per ton of ore milled compared to C$67 per ton in same quarter of 1998. However, cash operating costs to produce an ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. of gold increased to US$241 per ounce from US$213 per ounce as gold production decreased to 25,794 ounces from 40,580 ounces. The decline in gold production is due to lower gold grades as mining activities remove the remaining ore around Shaft No. 1 and Shaft No. 2. The average gold price realized during the 1999 second quarter was US$277 per ounce, down eight percent from US$300 per ounce realized in the second quarter of 1998. For the year to date, the net loss was US$4.6 million, or US$0.09 per share compared to US$4.1 million, or US$0.08 per share in 1998. Lower onsite operating costs were more than offset by lower gold production and a weaker gold price. STRONG FINANCIAL POSITION At June 30, 1999 Agnico-Eagle's financial position remained strong with a cash balance, excluding bullion BULLION. In its usual acceptation, is uncoined gold or silver, in bars, plates, or other masses. 1 East, P. C. 188. 2. In the acts of Congress, the term is also applied to copper properly manufactured for the purpose of being coined into money. on hand, of US$44 million and a working capital position of US$59 million. Including bullion on hand, Agnico-Eagle currently has US$61 million available for its capital investment program. In June, the Company announced its decision to expand the LaRonde Mine a further 39 percent from a planned 3,600 tons per day to 5,000 tons per day. The Company is expected to spend US$104 million to the end of 2002 to complete the expansion. Of this amount, US$39 million will be spent in the last six months of 1999, US$44 million in 2000, US$17 million in 2001 and US$4 million in 2002. The Company's cash and bullion balance, along with projected cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses over this period are expected to be sufficient to fund the remaining investment required to achieve a production rate of 5000 tons per day. In conjunction with a planned banking facility, due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. on the LaRonde project has been completed by Roscoe Postle Associates and Hatch Hatch may refer to: Actions and objects
The word underwrite has two meanings. a long-term revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility of US$75 million to US$100 million. This facility is intended to provide the working capital required for the capital expenditure program and to enhance Agnico-Eagle's liquidity and financial flexibility. LARONDE DRILLING PROGRAM The Company's ongoing underground drilling program has been accelerated and is focused on several areas, (1) testing the extension of Zone 20 South on the recently acquired El Coco property (2) testing for extensions of Zone 20 North and Zone 7 at depth and (3) definition drilling Zone 20 North (zinc) and Zone 7. Recent drilling has identified high grade gold and zinc mineralization on El Coco and has extended the known area of mineralization. The deep drilling program has continued to encounter Zone 7 and one of the drills has been set up at a recently completed shaft station below 6,000 feet in an effort to reach the Zone 20 North target area at depth. Definition drilling of Zone 20 North (zinc) has also continued to intersect In a relational database, to match two files and produce a third file with records that are common in both. For example, intersecting an American file and a programmer file would yield American programmers. strong zinc grades over sizeable widths. Six drills are currently drilling several targets. Zone 20 South - El Coco Drilling Results The recent drilling program on Zone 20 South and its extension into the recently acquired El Coco Property can be characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by frequent occurrences of visible gold resulting in good grade gold intersections with strong zinc grades. More importantly, the known outline of Zone 20 South has increased in size as drilling has extended the previously calculated area of mineral resource. As previously reported, past exploration on the extension of Zone 20 South onto the El Coco Property had identified a total resource of 2.4 million tons grading 0.23 ounces of gold per ton of which 869,000 tons grading 0.37 ounces of gold per ton was classified as a possible reserve. Four drills are presently in operation to transfer the possible reserve to probable reserves and increase the overall resource position. The four drills are located on the 20th level exploration drift drift, deposit of mixed clay, gravel, sand, and boulders transported and laid down by glaciers. Stratified, or glaciofluvial, drift is carried by waters flowing from the melting ice of a glacier. (2,800 feet below surface), 122 Level (4,000 feet below surface), 134 Level (4,400 feet below surface) and 146 Level (4,800 feet below surface). During this current drilling program, six drill holes were completed from the 20th level exploration drift and one hole from Level 122. Three holes were drilled above the known mineralization and four were completed within Zone 20 South on the El Coco Property. The three holes drilled above Zone 20 South did not encounter significant mineralization. The four holes drilled within the zone are outlined below: -------------------------------------------------------------------------
True Gold(oz/ton)
Drill Hole Thickness(ft) Cut(1 oz) Silver(oz/ton) Copper(%) Zinc(%)
------------------------------------------------------------------------- 20-187 9.8 0.12 1.61 0.10 5.56
-------------------------------------------------------------------------
20-188 14.8 0.50 2.84 0.16 7.06
------------------------------------------------------------------------- 20-202 9.2 0.18 3.61 0.25 10.38
-------------------------------------------------------------------------
12221725 9.2 0.12 1.59 0.31 6.13
------------------------------------------------------------------------- The above results were cut to one ounce of gold per ton as visible gold was evident in the drill core. This hole 20-188 had an uncut gold grade of 0.83 ounces of gold per ton. This drill hole intersected Zone 20 South approximately 300 feet above an earlier drill hole 20-103, which was previously drilled along the LaRonde/El Coco property boundary and returned 0.60 ounces of gold per ton over 23 feet. The visible gold observed in DDH DDH Decision Diffie-Hellman DDH Developmental Dysplasia of Hip DDH Dorothy Day House DDH Document Drafting Handbook DDH Dublin Dental Hospital DDH Destroyer-Carrying Helicopter DDH Dissociated Double Hypertropia 20-187 was not confirmed by the assay result and the assay is being rechecked. These values continued to confirm the high-grade nature of Zone 20 South as well its unique metallurgical characteristic of gold mineralization in conjunction with high-grade zinc values. In addition to high grade gold and zinc intersections within the zone, drilling from Level 146 below the known zone has extended Zone 20 South. Assay results for drill hole 146-20701 are outlined below: -------------------------------------------------------------------------
True Gold(oz/ton)
Drill Hole Thickness(ft) Cut(1 oz) Silver(oz/ton) Copper(%) Zinc(%)
------------------------------------------------------------------------- 146-20701 9.2 0.23 0.45 0.01 0.27
-------------------------------------------------------------------------
The above result is significant, as it is located on Level 146 approximately 400 feet outside of the current Zone 20 South resource on El Coco, which had earlier been calculated to Level 134. In addition to the above results, an additional six drill holes have been completed and assays results are pending. Drilling of Zone 20 South on El Coco is expected to be completed by the end of August. Deep Drilling Program - Zone 20 North (Gold) and Zone 7 Two drills continued the deep exploration program during the quarter targeting Zone 20 North (Gold). Drill hole 3160-04C, set up on the 160 Level (5,250 feet below surface), continued to experience difficulty on its third attempt to reach the Zone 20 North target area. The hole did encounter stringer string·er n. 1. One that strings: a stringer of beads. 2. Architecture a. A long heavy horizontal timber used as a support or connector. b. A stringboard. sphalerite sphalerite (sfăl`ərīt, sfā`–), mineral composed of zinc sulfide, usually containing some iron and a little cadmium. It occurs in crystals of the isometric system but more generally in cleavable, compact masses. (zinc) mineralization over a length of 16 feet at a depth of approximately 9,200 feet below surface but it did not reach the Zone 20 North target area. A survey of the location of the drill hole indicated that it had deviated sharply to the west and was running parallel to the Zone 20 North target area. It was concluded that further wedging wedging, n packing or fixing tightly by driving in a wedge or wedges. wedging effect, n See effect, wedging. of the hole would be ineffective and the drill has been lowered over 1,000 feet to Level 194 (6,365 feet below surface) where it is in a better position to successfully reach both Zone 20 North and Zone 7. The sphalerite (zinc) zone, which is a new occurrence and does not correspond to Zone 20 North, will be followed up at later date. Deep drill hole 3170-11 drilled from Level 170 also deviated from its intended target. This hole had targeted Zone 20 North at an approximate depth of 7,700 feet below surface. A wedge has been placed in the hole and the projected trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. of the hole now indicates the target area should be intersected at approximately 8,800 feet below surface. The drill hole is currently 1,200 feet away from this target area. Although the two recent deep drill holes have not yet reached Zone 20 North they continued to encounter Zone 7 intersecting in·ter·sect v. in·ter·sect·ed, in·ter·sect·ing, in·ter·sects v.tr. 1. To cut across or through: The path intersects the park. 2. broad pyrite pyrite (pī`rīt) or iron pyrites (pīrī`tēz, pə–, pī`rīts), pale brass-yellow mineral, the bisulfide of iron, FeS2. stringer mineralization (30-50 feet) with anomalous a·nom·a·lous adj. 1. Deviating from the normal or common order, form, or rule. 2. Equivocal, as in classification or nature. gold values ranging from 0.01 to 0.21 ounces per ton. Both of these intersections were encountered at a depth of 8,670 feet below surface and were outside and approximately 400 feet to the west of the projected outline of Zone 7 at depth. Although the gold grades in this area are not as high as those in the main Zone 7 area, these results are important because they have identified a broad mineralized stringer zone containing anomalous gold values over a length of more than 500 feet. This area of Zone 7 is open in all directions. The following table highlights the recent intersections: ------------------------------------------------------------------------- True Drill Hole Thickness(ft) Gold(oz/ton) Silver(oz/ton) Copper(%) Zinc(%) ------------------------------------------------------------------------- 3160-04C 3.3 0.04 0.47 0.02 0.35
-------------------------------------------------------------------------
3170-11 16.4 0.04 0.34 0.11 0.25
------------------------------------------------------------------------- including 3.3 0.21 0.34 0.08 0.09
-------------------------------------------------------------------------
Deep drilling will continue to test Zones 20 North (gold) and Zone 7 using two drills set up in Shaft No. 3 on Level 170 and the newly established drill station on Level 194. Zone 20 North (Zinc) Drilling Results Definition drilling continued on Level 146 (4,800 feet below surface). The drilling was completed along the shaft section and continued to confirm the high zinc grades and large thicknesses encountered in the upper Zone 20 North zinc zone. The drill results are outlined below: -------------------------------------------------------------------------
True Gold(oz/ton)
Drill Hole Thickness(ft) Cut(1 oz) Silver(oz/ton) Copper(%) Zinc(%)
------------------------------------------------------------------------- 146-20701 65.3 0.02 2.31 0.04 8.64
-------------------------------------------------------------------------
146-20702 72.8 0.03 4.04 0.03 8.96
------------------------------------------------------------------------- LaRonde Expansion Program Update Mill Test - Zone 20 North and 20 South Development Ore Although it is still early, a recent mill test of development ore indicates the potential to realize higher recovered gold grades. A composite sample of development ore from Zones 20 North and 20 South totaling approximately 8,600 tons was milled during the month of June. The sample consisted of 2,585 tons of lower grade development ore from the upper portion of Zone 20 South and 6,032 tons from Zone 20 North mined on Level 122. Geologically ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. the development ore mined exhibited the north/south fracturing known to result in higher recovered gold grades in LaRonde's main ore zone. The following table summarizes the results: ------------------------------------------------------------------------- Sample Type Tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. Gold(oz/ton) Silver(oz/ton) Copper(%) Zinc(%)
-------------------------------------------------------------------------
Chip & Drilling 10,543 0.07 1.15 0.21 2.00
------------------------------------------------------------------------- Mill 8,617 0.10 1.24 0.28 2.25
-------------------------------------------------------------------------
The recovered gold grades from the mill of 0.10 ounces of gold per ton were higher than the 0.07 ounce per ton grade indicated by chip sampling and drilling. Underground development, including the sampling of development ore, had suggested a possible upgrade similar to what has historically been realized at Shaft No. 1. This was the first major bulk sample test conducted on Shaft No. 3 ores. More importantly, chip sampling and drilling results compose the majority of the data used to calculate the current Shaft No. 3 ore reserve and mineral resource. Although 8,617 tons is a small sample relative to the 38.0 millions tons of reserve and resource presently indicated at Shaft No. 3 the sample results are an initial early indication of the potential to realize higher gold grades than what is presently indicated and calculated by drilling. Shaft Sinking shaft sinking, excavation from the surface of an opening in the earth. Shafts, which are generally vertical, are usually distinguished from tunnels, which are horizontal. and Mill Expansion At the end of the quarter, Shaft No. 3 had reached a depth of 6,441 feet for a total advance in the quarter of 382 feet. Ground conditions continue to be excellent. The Level 194 station excavation excavation In archaeology, the exposure, recording, and recovery of buried material remains. The techniques employed vary by the type of site, but all forms of archaeological excavation require great skill and careful preparation. was completed and sinking resumed. Drilling is scheduled to start from this new level in early August. The first mining block from Zone 20 North Gold on Level 122 neared production. The stope is currently being drilled and the first production blast is scheduled for the beginning of August. Ore from this area will be trucked up the ramp to Shaft No. 1 until Shaft No. 3 is ready for production in early 2000. At that time the volume of ore mined and processed will begin to increase resulting in increased gold production and significantly lower costs to produce an ounce of gold in 2000. The SAG (1) A momentary drop in voltage from the power source. Contrast with spike. (2) (SAG) (SQL Access Group) See CLI. mill, 5,000-ton ore bin and the truck dump were 80% complete at the end of the quarter. Commissioning of the SAG mill is currently in progress and the mill is scheduled to be in operation by the first week in August. YEAR 2000 The Company is fully aware of the potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. that may be caused by the passage to the Year 2000 and other data-related problems associated with it. The primary concern has been the financial systems used by Agnico-Eagle. The majority of the Company's critical systems have been confirmed by our vendors to be Year 2000 compliant a. 1. (Computers) having dates fully and properly represented, and not susceptible to failure due to the year 2000 bug. . These systems are currently being upgraded to the most recent versions that are confirmed to be compliant. The inventory of equipment and instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. used in Agnico-Eagle's mine operations has been completed. Testing of these systems and contacting of customers and suppliers to confirm compliance has been completed for critical process control equipment. Moreover, third party suppliers have been requested to warrant compliance of date sensitive instrumentation as a condition attached to any purchase order issued for such instrumentation. Based on the Company's current assessment, Agnico-Eagle has determined that most of its mission critical systems are already Year 2000 compliant and major systems modification is not expected. Therefore, costs to complete this process are not expected to be material. Favourable responses have been received from critical third party suppliers and financial institutions regarding their preparedness pre·par·ed·ness n. The state of being prepared, especially military readiness for combat. Noun 1. preparedness - the state of having been made ready or prepared for use or action (especially military action); "putting them for the transition to the Year 2000. Reliability of the commitments or comfort that will be expressed has been evaluated and a contingency plan A plan involving suitable backups, immediate actions and longer term measures for responding to computer emergencies such as attacks or accidental disasters. Contingency plans are part of business resumption planning. is being defined where either criticality or insufficient comfort warrants it. This will be equally the case for financial systems and mine operation equipment and instrumentation. This plan is expected to complete and fully tested by the end of the third quarter 1999. The time frames during which the Company believes it will complete its Year 2000 analysis and modifications and the cost estimates to complete these modifications are based on management's best estimates, which were made in reliance on numerous assumptions of future events, including the continued availability of certain resources and other factors. Any change in these assumptions may affect projections made by the Company. There can be no guarantee that the estimated time frames and costs will be achieved; actual results could differ materially from those anticipated. This press release contains certain ``forward-looking statements'' (within the meaning of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995) that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Other risks and uncertainties are disclosed under the heading ``Risk Factors'' in the Company's Annual Information Form (AIF AIF Annual Information Form AIF Apoptosis-Inducing Factor AIF Agence Intergouvernementale de la Francophonie (French: Intergovernmental Agency for Francophony) AIF Australian Imperial Force ) filed with certain Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. securities regulators (including the Ontario and Quebec Securities Commissions) and with the United States Securities and Exchange Commission (as Form 20-F). Agnico-Eagle Mines Limited is an established Canadian gold producer with operations located principally in northwestern Quebec and exploration and development activities in Quebec, Ontario and Nevada. Consistently one of the industry's lowest-cost producers, Agnico's operating history includes 24 years of continuous gold production primarily from underground mining operations. Current proven and probable gold reserves stand at 1.5 million contained ounces, with an additional 3.5 million ounces in the mineral resource category at its LaRonde Mine. Agnico-Eagle is currently focused on the expansion and large scale exploration program of its LaRonde Mine which is expected to result in increased gold production and expanded gold reserves. Summarized Quarterly Data (Unaudited) Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States Three months Six months
dollars, except per share ended June 30, ended June 30,
and per ounce amounts) 1999 1998 1999 1998
(Note 1)
------------------------------------------------------------------------- CONSOLIDATED FINANCIAL DATA Income and cash flow ------------------------------------------------------------------------- Revenue from mining
operations (Note 2) $ 7,210 $ 11,187 $ 17,316 $ 21,711
Net loss for period $ (2,890) $ (1,959) $ (4,635) $ (4,089)
Loss per share $ (0.05) $ (0.04) $ (0.09) $ (0.08)
Operating cash flow
(Note 3) $ (838) $ 327 $ (1,600) $ 299
Operating cash flow
per share $ (0.02) $ 0.01 $ (0.03) $ 0.01
Gold production-ounces 25,794 40,580 58,800 76,312
Average gold price
- per ounce realized $ 277 $ 300 $ 282 $ 300
Average exchange rate
- US$ per Canadian
dollar 0.6776 0.6918 0.6699 0.6959
Weighted average number
of shares - basic
(in thousands) 53,285 46,756 53,258 46,766
Operating and Financial Summary
LaRonde Division
Revenues from mining
operations (Note 2) $ 7,210 $ 11,187 $ 17,316 $ 21,711
Mine operating costs 7,425 8,639 15,408 16,478
------------------------------------------------------------------------- Mine operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. (loss) $ (215) $ 2,548 $ 1,908 $ 5,233 -------------------------------------------------------------------------
----------------------------------------------
Tons of ore milled 183,708 198,293 387,578 380,809
Grade - ounces of gold
per ton 0.15 0.22 0.17 0.22
Gold production - ounces 25,794 40,580 58,800 76,312
Copper production - pounds 979,150 1,529,258 2,203,324 2,946,962
Zinc production - pounds 1,783,810 - 3,347,795 -
Onsite operating costs
per ton milled
(Canadian dollars) $ 60 $ 67 $ 59 $ 66
------------------------------------------------------------------------- ---------------------------------------------- Operating costs per gold ounce produced (US$): Onsite operating costs (including reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. provision) $ 288 $ 225 $ 262 $ 230
Less: Non cash reclamation
provision (4) (3) (4) (3)
Net by-product
revenues (43) (9) (31) (13)
------------------------------------------------------------------------- Cash operating costs $ 241 $ 213 $ 227 $ 214
Non cash costs:
Reclamation provision 4 3 4 3
Depreciation and
amortization 53 46 45 48
------------------------------------------------------------------------- Total operating costs $ 298 $ 262 $ 276 $ 265 -------------------------------------------------------------------------
----------------------------------------------
Notes to Summarized Quarterly Data and Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge : (1) Effective January 1, 1999, Agnico-Eagle changed its functional and reporting currency Reporting Currency The currency used in published reports and financial documents. Notes: All annual and quarterly reports state the currency in which their results are listed. from Canadian to United States dollars. The temporal method Temporal method A currency translation method under which the choice of exchange rate depends on the underlying method of valuation. Assets and liabilities valued at historical cost (market cost) are translated at the historical (current market) rate. is applied for the accounting currency transactions and translation. Comparative figures for periods prior to January 1, 1999, denominated into Canadian dollars, are translated into United States dollars under, generally accepted Canadian accounting principles, using the closing spot Canadian and United States currency exchange rate as at December 31, 1998 of $1.5333. (2) Revenue from mining operations consists of gold by-product revenues net of smelting smelting, in metallurgy, any process of melting or fusion, especially to extract a metal from its ore. Smelting processes vary in detail depending on the nature of the ore and the metal involved, but they are typified in the use of the blast furnace. and refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar charges. (3) Before non-cash working capital adjustments. Consolidated Balance Sheets Agnico-Eagle Mines Limited
-------------------------------------------------------------------------
(thousands of United States dollars) June 30, December 31,
1999 1998
------------------------------------------------------------------------- (Unaudited) ASSETS Current
Cash and cash equivalents $ 43,785 $ 76,262
Metals awaiting settlement and gold bullion 18,401 23,210
Income taxes recoverable 745 714
Prepaid expenses, supplies and other 6,044 6,558
------------------------------------------------------------------------- Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 68,975 106,744
-------------------------------------------------------------------------
Investments, loans, advances and other assets 12,473 13,560
Future income and mining tax assets 5,064 4,061
Mining properties 188,751 156,388
------------------------------------------------------------------------- $ 275,263 $ 280,753 -------------------------------------------------------------------------
--------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 4,340 $ 6,832
Dividends payable 642 1,660
Income and mining taxes payable 2,720 2,885
Current interest due on senior convertible
notes 1,896 1,897
------------------------------------------------------------------------- Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 9,598 13,274
-------------------------------------------------------------------------
Senior convertible notes 107,161 105,239
------------------------------------------------------------------------- Reclamation provision and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 5,099 4,507
-------------------------------------------------------------------------
Future income and mining tax liabilities 9,379 9,695
------------------------------------------------------------------------- Minority interest 3,590 3,592
-------------------------------------------------------------------------
Shareholders' Equity
Common shares
Authorized - unlimited
Issued - 55,223,344 (1998 - 55,112,625) 151,932 151,307
Other paid in capital 14,535 14,535
Contributed surplus 3,886 3,886
Deficit (16,134) (11,499)
Company's own shares held by subsidiary company (13,783) (13,783)
------------------------------------------------------------------------- Total shareholders' equity 140,436 144,446
-------------------------------------------------------------------------
$ 275,263 $ 280,753
------------------------------------------------------------------------- -------------------------- Consolidated Statements of Loss Agnico-Eagle Mines Limited (Unaudited)
-------------------------------------------------------------------------
(thousands of United Three months Six months
States dollars, except ended June 30, ended June 30,
per share amounts) 1999 1998 1999 1998
------------------------------------------------------------------------- REVENUES ------------------------------------------------------------------------- Revenues from mining
operations $ 7,210 $ 11,187 $ 17,316 $ 21,711
Interest and sundry income 1,085 970 1,732 1,581
------------------------------------------------------------------------- 8,295 12,157 19,048 23,292 COSTS AND EXPENSES
-------------------------------------------------------------------------
Production 7,346 8,892 15,533 17,087
Exploration 961 401 1,363 1,158
Depreciation and amortization 1,378 1,772 2,709 3,408
General and administrative 1,131 821 2,111 1,718
Capital tax 190 359 538 558
Interest 2,152 2,169 4,301 4,205
-------------------------------------------------------------------------
Loss before the undernoted (4,863) (2,257) (7,507) (4,842)
Foreign currency gain (loss) 1,490 (267) 1,811 (512)
------------------------------------------------------------------------- Loss before income and mining tax recoveries (3,373) (2,524) (5,696) (5,354)
Income and mining tax
recoveries (483) (565) (1,061) (1,265)
------------------------------------------------------------------------- Net loss for the period $ (2,890) $ (1,959) $ (4,635) $ (4,089) -------------------------------------------------------------------------
----------------------------------------------
Loss per share $ (0.05) $ (0.04) $ (0.09) $ (0.08)
------------------------------------------------------------------------- ---------------------------------------------- Consolidated Statements of Cash Flows Agnico-Eagle Mines Limited (Unaudited)
-------------------------------------------------------------------------
(thousands of United Three months Six months
States dollars) ended June 30, ended June 30,
1999 1998 1999 1998
------------------------------------------------------------------------- Operating activities Net loss for the period $ (2,890) $ (1,959) $ (4,635) $ (4,089) Add (deduct de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. ) items not affecting cash from operating activities:
Depreciation and
amortization 1,378 1,772 2,709 3,408
Future provision of income
and mining recoveries (641) (766) (1,385) (1,565)
Foreign currency
translation gain (92) 345 (824) 537
Amortization of deferred
interest and financing
costs on convertible 1,044 958 2,066 1,880
Other 363 (23) 469 128
------------------------------------------------------------------------- (838) 327 (1,600) 299 Net change in non-cash working capital balances related to operations
Metals awaiting settlement
and gold bullion 4,098 592 4,809 550
Prepaid expenses, supplies
and other (187) 796 514 1,426
Income and mining taxes
recoverable and payable 20 227 (196) 197
Accounts payable and accrued
liabilities (665) 503 (2,333) (707)
Current interest due on
senior convertible notes 1,105 1,085 (1) 45
------------------------------------------------------------------------- Cash flows from operating activities 3,533 3,530 1,193 1,810
-------------------------------------------------------------------------
Investing activities
Additions to mining
properties (20,437) (9,508) (35,072) (17,631)
Purchase of shares of
subsidiary companies and
other 61 (37) 62 (578)
------------------------------------------------------------------------- Cash flows used in investing activities (20,376) (9,545) (35,010) (18,209)
-------------------------------------------------------------------------
Financing activities
Dividends paid (4) (5) (1,020) (800)
Share issued by public
offering - 65,219 - 65,219
Shares issued under employee
plans 276 150 549 300
Share issue costs - (3,000) - (3,000)
Purchase of the Company's own
shares held by subsidiary
company and other - 55 - (184)
------------------------------------------------------------------------- Cash flows from (used in) financing activities 272 62,419 (471) 61,535
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents 666 - 1,811 -
Net increase (decrease) in
cash and cash equivalents (15,905) 56,404 (32,477) 45,136
Cash and cash equivalents,
beginning of period 59,690 749,040 76,262 60,308
------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 43,785 $ 105,444 $ 43,785 $ 105,444 ------------------------------------------------------------------------- ---------------------------------------------- Other operating cash flow information:
Interest paid during
the period $ 38 $ 1,651 $ 2,270 $ 2,294
------------------------------------------------------------------------- ---------------------------------------------- Taxes paid during the period $ 402 $ 327 $ 1,165 $ 655 ------------------------------------------------------------------------- ---------------------------------------------- |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion