TORONTO, Feb. 11, 2015 /PRNewswire/ – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported a quarterly net loss of $21.3 million, or a net loss of $0.10 per share for the fourth quarter of 2014. This result includes a non-cash foreign currency translation loss on deferred tax liabilities of $20.3 million ($0.10 per share), various mark-to-market adjustment losses of $5.0 million ($0.02 per share), unrealized losses on financial instruments of $7.7 million ($0.04 per share), non-cash foreign currency translation losses of $7.0 million ($0.03 per share), non-cash stock option expense of $3.5 million ($0.02 per share) and non-recurring gains of $5.6 million ($0.03). Excluding these items would result in adjusted net income of $16.6 million ($0.08 per share) for the fourth quarter of 2014. In the fourth quarter of 2013, the Company reported a net loss of $780.3 million or a net loss of $4.49 per share, which included a $1.0 billion impairment loss.
Fourth quarter 2014 cash provided by operating activities was $164.0 million ($152.2 million before changes in non-cash components of working capital), this compares to cash provided by operating activities of $140.8 million in the fourth quarter of 2013 ($135.8 million before changes in non-cash components of working capital). The slight increase in cash flow before changes in working capital during the current period was largely due to higher production which more than offset lower realized gold and silver prices (down 10% and 23% respectively, period over period).
"Our operations continue to perform well, which allowed us to exceed both our production and cost guidance for the third year in a row. With projected year-over-year production growth of 12%, lower fuel costs and weaker local currencies anticipated in Canada, Mexico and Finland, we expect to have another strong year in 2015", said Sean Boyd , President and Chief Executive Officer. "It should also be an exciting year on the exploration front, with drilling activities underway at most of our mines, and significant programs planned at our Amaruq project in Nunavut and El Barqueno project in Mexico. Given the strong potential to expand the initial 1.5 million ounce resource at Amaruq, and the recent positive permitting news at Meliadine, we expect to unlock additional value from our Nunavut platform in 2015", added Mr. Boyd.
Fourth quarter, full year 2014 and recent highlights include:
- Record annual gold production – Payable gold production1 in 2014 was 1,429,288 ounces at total cash costs2 per ounce on a by-product basis of $637, compared to guidance of 1,400,000 ounces at total cash costs per ounce on a by-product basis of $663. All-in sustaining costs3 ("AISC") for 2014 was $954 per ounce on a by-product basis, which is below the previous 2014 guidance of $990 per ounce on a by-product basis.
- Record fourth quarter production – Payable production in Q4 2014 was 387,538 ounces of gold at total cash costs per ounce on a by-product basis of $662
- 2015 guidance maintained – Production for 2015 is expected to be approximately 1.6 million ounces of gold with total cash costs on a by-product basis of $610 to $630 per ounce. AISC are forecast to be approximately $880 to $900 per ounce
- Year-over-year increase in reserves and resources – With the acquisition of Osisko Mining Corporation, reserves at year end 2014 were 20.0 million ounces compared to 16.9 million ounces at year end 2013. Measured and indicated resources and inferred resources also increased by approximately 56% and 33%, respectively, over the 2013 period
- Continued focus on reserve quality and improved grades – Increased gold reserve grades at LaRonde (5.20 g/t versus 5.00 g/t), Kittila (4.93 g/t versus 4.64 g/t) and Pinos Altos (3.01 g/t versus 2.84 g/t)
- Increased reserves, resources and positive permitting progress in Nunavut – Initial inferred resource of 1.5 million ounces (6.6 million tonnes grading 7.07 g/t gold) reported at Amaruq project. Meliadine reserves increased by approximately 500,000 ounces to 3.3 million ounces (at a grade of 7.44 g/t gold), and the Project Certificate setting out the terms on which the project can proceed is expected within the next two months
- Proceeds from sale of Probe Mines shares used to reduce debt – In Q1 2015, $30 million was repaid on the credit line.
- A quarterly dividend of $0.08 per share declared
