 | Agnico-Eagle Mines Ltd - AEM.t operates four mines in Canada, one mine in Finland and one mine in Mexico. The Company reported 2015 gold production of 1,671,340 ounces at all-in sustaining costs of $810. |  |
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"Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported a quarterly net loss of $15.5 million, or a net loss of $0.07 per share for the fourth quarter of 2015. This result includes a non-cash foreign currency translation loss on deferred tax liabilities of $8.6 million ($0.04 per share), various mark-to-market adjustment losses of $5.0 million ($0.02 per share), unrealized losses on financial instruments of $3.3 million ($0.01 per share), non-cash foreign currency translation losses of $1.3 million ($0.01 per share), non-cash stock option expense of $3.6 million ($0.02 per share) and non-recurring gains of $2.4 million ($0.01). Excluding these items would result in adjusted net income of $3.9 million ($0.02 per share) for the fourth quarter of 2015. In the fourth quarter of 2014, the Company reported a net loss of $21.3 million or a net loss of $0.10 per share.
Fourth quarter 2015 cash provided by operating activities was $140.7 million ($112.6 million before changes in non-cash components of working capital), this compares to cash provided by operating activities of $164.0 million in the fourth quarter of 2014 ($151.6 million before changes in non-cash components of working capital). The decrease in cash flow before changes in working capital during the current period was largely due to a tax adjustment in the fourth quarter of 2015.
"In 2015, our operations continued to perform well, which allowed us to do better on both our production and cost guidance for the fourth consecutive year. Despite a volatile gold price environment, we doubled our exploration spending, continued to advance our pipeline of development projects, and reduced our net debt by approximately $190 million," said Sean Boyd, Agnico Eagle's Chief Executive Officer. "Over the next three years, we are forecasting stable annual production and costs, which should allow us to continue to invest in our existing mines, maintain funding levels at our key exploration projects, advance our development pipeline in Nunavut at a steady and measured pace and maintain our history of continuous dividend payments to shareholders," added Mr. Boyd.
Fourth quarter and full year 2015 highlights include: • Guidance exceeded for fourth consecutive year - Payable production1 in 2015 was 1,671,340 ounces of gold at total cash costs2 per ounce on a by-product basis of $567, compared to guidance of 1,650,000 ounces at total cash costs per ounce on a by-product basis of $600. All-in sustaining costs per ounce3 ("AISC") on a by-product basis for 2015 were $810, compared to guidance of $850 per ounce
• Stable production and costs expected through 2018 - Average annual production from 2016 to 2018 is forecast to be approximately 1.53 million ounces of gold. Production for 2016 is forecast to be between 1.525 and 1.565 million ounces of gold with total cash costs per ounce on a by-product basis of between $590 and $630 per ounce. AISC for 2016 are forecast to be between $850 and $890 per ounce. Costs were calculated using a US$/C$ exchange rate of 1.30, EURO$/US$ exchange rate of 1.10 and a US$/MXP exchange rate of 16.00
• Increased gold reserve grades at key mines, significant increase in year-end 2015 gold resources, slight decline in gold reserves after mining depletion - Gold reserve grades increased at the LaRonde, Canadian Malartic, Goldex and La India mines. Measured and indicated mineral resources were up 1%, while inferred mineral resources increased by 23%. Mineral reserves declined by only 5% (0.9 million ounces) to 19.1 million ounces due to mine depletion of approximately 1.8 million ounces
• Gold resources increased by 67% at Amaruq - Inferred mineral resources at Amaruq now total 3.3 million ounces (16.9 million tonnes grading 6.05 grams per tonne ("g/t") gold). The 2016 Phase 1 drill program (approximately 75,000 metres) is now underway with a focus on expanding and upgrading mineral resources and outlining a second open pit deposit
• Initial inferred gold resources declared at El Barqueño and the Sisar Zone at Kittilla - At El Barqueño, initial inferred mineral resources are estimated to be 0.61 million ounces (19.7 million tonnes grading 0.96 g/t gold), while at Kittila the recently discovered Sisar Zone contains inferred mineral resources of 0.65 million ounces (3.4 million tonnes grading 5.91 g/t gold)
• Moderate 2016 capital spending preserves production optionality in Nunavut - Expenditures at Amaruq are designed to expand and upgrade the gold resources and outline a second source of open pit ore for the project. Planned spending levels at Meliadine for 2016 are expected to be sufficient to keep critical path elements moving forward. However, decreased spending as compared with previous internal forecasts is expected to delay the potential project start-up by approximately one year to 2020
• Improved financial flexibility - In 2015, net debt was reduced by $190 million, further strengthening the Company's investment grade balance sheet
• A quarterly dividend of $0.08 per share declared.
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