Form 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934
For the Month of April 2003
---------------------------------------------------------------
Agnico-Eagle Mines Limited
--------------------------------------------------------------------------------
(Translation of registrant's name into English)
145 King Street East, Suite 500, Toronto, Ontario M5C 2Y7
--------------------------------------------------------------------------------
[Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20F or Form 40-F.]
Form 20-F X Form 40-F
------- -------
[Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
------- -------
[If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82-____________
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AGNICO-EAGLE MINES LIMITED
Date: April 23, 2003 By: (SIGNED) SEAN BOYD
------------------------- -------------------------------------
President and Chief Executive Officer
STOCK SYMBOLS: AEM (NYSE) FOR FURTHER INFORMATION:
AGE (TSX) BARRY LANDEN, V.P. CORPORATE AFFAIRS
AGNICO-EAGLE MINES LIMITED
(416) 947-1212
(ALL AMOUNTS EXPRESSED IN U.S. DOLLARS UNLESS OTHERWISE NOTED)
AGNICO-EAGLE REPORTS FIRST QUARTER RESULTS
Toronto, Canada (April 23, 2003) - AGNICO-EAGLE MINES LIMITED today reported a
net loss of $6.2 million, or $0.07 per share in the first quarter of 2003
compared to net income of $0.5 million, or $0.01 per share last year. Included
in the first quarter 2003 results is a one-time net of tax non-cash charge of
$1.7 million, or $0.02 per share, representing the cumulative effect of the
adoption of a new US GAAP accounting standard, FAS 143, relating to future
reclamation obligations. Management's Discussion and Analysis for the first
quarter of 2003 is appended to this press release.
FIRST QUARTER RESULTS NEGATIVELY IMPACTED BY ROCK FALL
Gold production in the first quarter was below the Company's expectations with
55,005 ounces produced compared to 60,259 ounces in the first quarter of 2002.
Cash operating costs increased from $129 per ounce to $169 per ounce due to
lower gold and byproduct zinc production and a stronger Canadian dollar, only
partly offset by higher silver and copper production. Total cash operating
costs, including the El Coco royalty, increased to $243 per ounce from $161 per
ounce.
The main reason for the production shortfall was a previously reported fall of
ground at the Company's LaRonde gold mine in Quebec. This event delayed the
extraction of gold/copper mining blocks in March and caused higher than planned
dilution in the mining blocks affected by the rock fall.
The key facts behind this incident are as follows:
o The fall of an estimated 30,000 tons of rock, which occurred over a
period of approximately two weeks, was due to an accumulation of
localized stresses. It was not a rock burst and was not caused by
depth or the mining method used at LaRonde. As this was only the fifth
mining block extracted from the lower level mining horizon, there was
an accumulation of localized stresses along both the eastern and
western limits of the mined out area. The fall was triggered by a
production blast immediately below the caved area. The area stabilized
on its own allowing for the removal of the blasted ore and material
that caved.
o There were no injuries and no damage to equipment or underground
infrastructure. Mining, development and processing operations
continued and LaRonde's large gold reserve and resource base is
unaffected.
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o The impact on production could not be assessed until the end of March
when the fallen rock was removed, the draw point brow exposed, the
caved area surveyed, the cause determined, recovery plan and new
mining sequence devised. LaRonde previously experienced similar events
at Shaft #1 closer to surface, that had no impact on production.
o Remedial work, which included filling the original 100 foot high
mining block from Level 212, has been completed. The remaining caved
area above Level 212 will be filled from Level 209 by the end of May.
o Other remedial work includes accelerating the pyramidal mining
sequence in the second quarter, by reducing the width of four mining
blocks to 40 feet from 50 feet. The smaller mining blocks will permit
faster ore extraction and minimize dilution. This will result in
reduced tonnage from the gold/copper area of the mine during the
second quarter, with normal underground mining operations expected to
resume during the third and fourth quarter.
IMPACT ON 2003 GOLD PRODUCTION AND TOTAL CASH OPERATING COSTS
As previously disclosed, the Company expects its 2003 gold production to be
approximately 300,000 ounces, or 20% lower than the previous target of 375,000.
This revision is a timing issue as opposed to a loss of gold production. As a
precaution, the Company decided to delay the extraction of 10 mining blocks in
the lower part of the mine into 2004. This higher grade gold tonnage will be
replaced with already developed zinc/silver ore in the upper part of the mine.
As a result of this gold production shortfall, a stronger than anticipated
Canadian dollar and lower than expected silver prices, total cash operating
costs to produce an ounce of gold in 2003 are projected to be $180 per ounce,
including an estimated El Coco royalty of $21 per ounce, or 44% higher than the
Company's previous target of $125 per ounce.
A summary of the impact on the metal production and cash operating cost
estimates, together with the material assumptions used in the Company's
estimates, follows:
----------------------------------------------------------------------------------------------------------------------------
REVISED ESTIMATE PRIOR ESTIMATE
----------------------------------------------------------------------------------------------------------------------------
Ore processed (000's tons) 2,700 2,800
Gold grade (oz./t) 0.12 0.14
Payable metal production:
Gold (ozs.) 300,000 375,000
Silver (000's ozs.) 4,000 3,800
Zinc (000's lbs.) 94,000 84,000
Copper (000's lbs.) 26,000 31,000
Total cash operating costs ($/oz.) 180 125
Assumptions:
Gold ($/oz.) 320 310
Silver ($/oz.) 4.60 5.00
Zinc ($/lb.) 0.36 0.36
Copper ($/lb.) 0.75 0.75
US$/C$ exchange rate 1.47 1.53
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The estimated sensitivity of LaRonde's 2003 total cash operating costs to a 10%
change in metal prices and exchange rates follows:
----------------------------------------------------------------------------------
VARIABLE IMPACT ON TOTAL CASH OPERATING COSTS ($/OZ.)
----------------------------------------------------------------------------------
US$/C$ 23
Silver 6
Copper 6
Zinc 5
Gold 2
----------------------------------------------------------------------------------
LARONDE OPERATING PERFORMANCE IMPROVING
Despite the difficulties stemming from the rock fall in the quarter, the Company
continued to optimize the LaRonde operation. Three key performance indicators
continued to improve including:
o Development performance on the lower level which was above plan in the
quarter.
o Ore tonnage mined from the lower levels represents 42% of the mill
feed currently mined despite the rock fall and the lack of an ore
handling facility and crushing plant, which is under construction.
o Average daily mill throughput increased to 6,696 tons in the first
quarter, with March averaging 6,903 tons per day. In April, the mine
and mill to date have averaged 7,978 tons per day after being idle for
the first four days of the month for scheduled preventative
maintenance. Mill recoveries have remained on target.
Productivity is expected to steadily improve on the lower levels as the impact
of the improved development performance continues to provide more mining blocks.
Also impacting future productivity will be the availability of the second
underground crusher in May.
LARONDE CONTINUES AGGRESSIVE DRILLING PROGRAM
Nine drill rigs were in operation during the quarter, completing nearly 55,000
feet of diamond drilling on the following target areas:
o Definition drilling on Zone 20 North between Levels 170 to 206
o Testing Zone 7 between Levels 170 to 215.
o Production delineation drilling on Zone 20 North between Level 137 and
209.
o Definition drilling on Zone 20 North below Level 215.
o Exploration drilling on Zone 20 North at depth.
Increased access from lower level haulage drifts and production draw points
permitted more emphasis to be placed on ZONE 7 which had previously not been
definition drilled. Definition and delineation drilling started on Zone 7 from
Levels 170, 206 and 215. The results, which are summarized below, were better
than expected and have not yet been incorporated in the revised 2003 production
target:
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TRUE GOLD(OZ/TON)
DRILL HOLE THICKNESS(FT) FROM TO CUT(1.0 OZ) SILVER(OZ/TON) COPPER(%) ZINC(%)
--------------------------------------------------------------------------------------------------------------------------
3194-68 9.2 511.8 523.0 0.24 0.60 0.24 1.95
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3206-17 9.2 547.6 557.4 0.34 1.12 0.35 2.32
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3206-19 9.8 508.2 518.7 0.29 0.78 0.56 1.50
--------------------------------------------------------------------------------------------------------------------------
3206-20 9.2 583.3 594.5 0.17 1.00 0.27 3.57
--------------------------------------------------------------------------------------------------------------------------
3206-24 9.2 710.6 721.4 0.15 0.79 0.62 2.39
--------------------------------------------------------------------------------------------------------------------------
3215-31 9.2 493.4 502.6 0.52 1.45 0.66 2.40
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3215-48 9.2 525.3 535.1 0.16 0.29 0.11 0.39
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3215-49 9.2 493.4 502.9 0.34 0.55 0.25 2.02
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3215-52 9.2 540.3 549.5 0.26 0.85 0.41 0.68
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DEEP DRILLING tested Zone 20 North below the bottom of the Penna Shaft with the
objective of acquiring sufficient drill hole density to continue the conversion
of resource to reserve. As previously reported, the program was successful in
converting 1.0 million ounces of gold into reserves in 2002. Additional drilling
not previously reported follows:
--------------------------------------------------------------------------------------------------------------------------
TRUE GOLD(OZ/TON)
DRILL HOLE THICKNESS(FT) FROM TO CUT(1.5 OZ) SILVER(OZ/TON) COPPER(%) ZINC(%)
--------------------------------------------------------------------------------------------------------------------------
3215-34A 72.2 2,054.1 2,175.8 0.12 0.89 0.71 0.04
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3215-38Au 33.8 1467.8 1,511.8 0.15 0.74 0.60 0.09
--------------------------------------------------------------------------------------------------------------------------
3215-38Zn 23.0 1,511.8 1,541.3 0.06 0.90 0.14 5.46
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3215-43 32.8 1,806.4 1,847.7 0.16 0.52 0.72 0.10
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3215-50 45.9 1827.4 1,895.3 0.11 0.38 0.39 0.02
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3215-58 29.5 1317.6 1,352.7 0.19 1.55 0.65 0.13
--------------------------------------------------------------------------------------------------------------------------
including 16.4 1326.4 1347.8 0.25 1.88 0.70 0.07
--------------------------------------------------------------------------------------------------------------------------
The deep drilling program has entered a new phase with increased access provided
from the Level 215 exploration drift. This program will provide additional
information required in the Deep LaRonde Study. To date, 767 feet of development
has been completed to the west.
REGIONAL GROWTH STUDIES PROGRESSING ON LAPA, GOLDEX AND DEEP LARONDE
The Company will provide an update on LAPA drilling activity in a separate press
release before the conference call on April 24, 2003.
At GOLDEX, a number of technical studies have been initiated including rock
fragmentation and subsidence, hoisting, shaft design, equipment, ventilation,
manpower, rock mechanics, mining methods and underground infrastructure,
metallurgy and plant design, resource estimate and environmental impact. These
will culminate in a feasibility study, the results of which the Company plans to
release at its Annual General Meeting on June 19, 2003.
A rock mechanic study was also initiated on the DEEP LARONDE project. A scoping
study on this project is also expected in time for the Annual General meeting.
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The longitudinal illustrations that detail the drill results presented in this
news release can be viewed and downloaded from the Company's website
WWW.AGNICO-EAGLE.COM (PRESS RELEASE) OR:
HTTP://FILES.NEWSWIRE.CA/3/ZONE7.PDF
HTTP://FILES.NEWSWIRE.CA/3/0423LARONDE20N.PDF
LIVE PRESENTATION TO BE HELD DURING CONFERENCE CALL
The Company's senior management will host a live presentation during its
conference call on THURSDAY, APRIL 24, 2003 AT 11:00 A.M. (EST) in the Toronto
Room II, Toronto Hilton, 145 Richmond Street West, Toronto, Ontario. The Company
will discuss its first quarter 2003 financial and operating results. The Company
will also provide an update on LaRonde's operating performance and the Company's
exploration activities on its latest gold discovery, the Lapa Property. All
those interested are invited to attend in person, by telephone or by webcast.
To participate in the conference call, please dial (416) 640-4127. To ensure
your participation, please call approximately five minutes prior to the
scheduled start of the call. A live audio webcast of the call will be available
on the Company's website at WWW.AGNICO-EAGLE.COM.
LARONDE MINE TOUR
Analysts and investors are reminded of a TOUR OF THE LARONDE MINESITE on
THURSDAY, MAY 22. The tour will focus on progress of underground development and
will include a tour of the infrastructure at depth. An exploration update will
also be provided on LaRonde and the Company's regional programs along its
20-mile position on the Cadillac-Bousquet Belt. Space is limited and will be
reserved on a first-come first-serve basis. Please register with Hazel
Winchester at 416-847-3717.
SCIENTIFIC AND TECHNICAL DATA
A qualified person, Marc. H. Legault, P.Eng., Agnico-Eagle's Manager, Project
Evaluation, has verified the data disclosed in this news release. The
verification procedures, the quality assurance program, quality control
procedures may be found in the 2001 Ore Reserve Report, Agnico-Eagle Mines
Limited, LaRonde Division, dated February 25, 2001, files on SEDAR.
FORWARD LOOKING STATEMENTS
This news release contains certain "forward-looking statements" (within the
meaning of the United States Private Securities Litigation Reform Act 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. Risks and
uncertainties are disclosed under the heading "Risk Factors" in the Company's
Annual Information Form (AIF) filed with certain Canadian securities regulators
(including the Ontario and Quebec Securities Commissions) and with the United
States Securities and Exchange Commission (as Form 20-F).
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Agnico-Eagle is a long established Canadian gold producer with operations
located in northwestern Quebec and exploration and development activities in
eastern Canada and the southwestern United States. Agnico-Eagle's operating
history includes over three decades of continuous gold production, primarily
from underground mining operations. Agnico-Eagle's LaRonde Mine in Quebec is
Canada's largest gold deposit. The Company has full exposure to higher gold
prices consistent with its policy of no forward gold sales. It has paid a cash
dividend for 23 consecutive years.
- 30 -
Schedules Attached:
Management's Discussion and Analysis
Summarized Quarterly Data
Consolidated Financial Statements (excluding notes)
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QUARTERLY MANAGEMENT DISCUSSION AND ANALYSIS
(ALL FIGURES ARE EXPRESSED IN US DOLLARS UNLESS OTHERWISE NOTED)
RESULTS OF OPERATIONS
Agnico-Eagle reported a first quarter net loss of $6.2 million, or $0.07 cents
per share, compared to net income of $0.5 million, or $0.01 cent per share, in
the first quarter of 2002. Gold production in the first quarter of 2003 was
below the Company's expectations with 55,005 ounces produced compared to 60,259
ounces in the first quarter of 2002. The first quarter production shortfall is
due to a previously reported rock fall at the Company's LaRonde Mine. This event
delayed the extraction of gold/copper mining blocks in March and caused higher
than planned dilution in the mining blocks affected by the rock fall.
The first quarter of 2003 included a non-cash charge of $1.7 million (net of
tax), or $0.02 per share, representing the cumulative effect of adopting
Financial Accounting Standards Board Statement No. 143, "Accounting for Asset
Retirement Obligations" ("FAS 143"). For a full description of the accounting
change, please see the Company's 2002 Management Discussion and Analysis of
Operations and Financial Condition under the caption "Critical Accounting
Policies - Reclamation Costs."
The table below summarizes the key variances in net loss for the first quarter
of 2003 from the net income reported for the same period in 2002.
(MILLIONS OF DOLLARS) FIRST QUARTER
------------------------------------------------------------------------------------------------------
Increase in gold price $3.0
Increase in copper production 2.0
Increase in silver production and price 1.6
Increase in operating costs (4.0)
Increase in El Coco royalty (2.2)
Cumulative effect of adopting FAS 143 (1.7)
Decrease in gold production (1.7)
Increase in depreciation & amortization (1.3)
Decrease in zinc production (1.0)
Stronger Canadian dollar (0.8)
Other (0.6)
------
Net negative variance $(6.7)
======
The increase in operating costs was attributable to the LaRonde Mine operating
at 7,000 tons of ore treated per day compared to the 5,000 ton per day rate in
the first quarter of 2002. Operating at the expanded rate, the mill processed a
record 602,633 tons of ore in the first quarter of 2003 leaving onsite operating
costs per ton unchanged over the first quarter of 2002 at C$52 per ton.
In the first quarter of 2003 cash operating costs per ounce, excluding the El
Coco royalty, increased to $169 per ounce from $129 per ounce in 2002. Total
cash operating costs to produce an ounce of gold were $243 compared to $161 in
the same quarter of 2002. Although onsite operating costs remained unchanged at
$52 per ton, total cash operating costs increased over 2002 due to lower gold
More... 7
production, a higher El Coco royalty, lower byproduct zinc production and a
stronger Canadian dollar. As illustrated by the table above, these negative
impacts on total cash operating costs were only partially offset by increases in
byproduct copper and silver production.
The following table provides a reconciliation of the total cash operating costs
per ounce of gold produced to the financial statements:
(THOUSANDS OF DOLLARS, EXCEPT WHERE NOTED) Q1 2003 Q1 2002
----------------------------------------------------------------------------------------------------------
Cost of production per Consolidated Statements
of Income (Loss) $24,347 $17,603
Adjustments:
Byproduct revenues (11,379) (7,535)
El-Coco royalty (4,075) (1,908)
Revenue recognition adjustment (i) 508 (57)
Non cash reclamation provision (105) (303)
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Cash operating costs $9,296 $7,800
Gold production (ounces) 55,005 60,529
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Cash operating cost (per ounce) $169 $129
El-Coco royalty (per ounce) 74 32
------- -------
Total cash operating costs (per ounce) (ii) $243 $161
======= =======
Notes:
(i) Under the Company's revenue recognition policy, revenue is
recognized on concentrates when legal title passes. Since cash
costs are calculated on a production basis, this adjustment
reflects the portion of concentrate production for which revenue
has not been recognized in the year.
(ii) Total cash operating cost data is prepared in accordance with The
Gold Institute Production Cost Standard and is not a recognized
measure under US GAAP. Adoption of the standard is voluntary and
this data may not be comparable to data presented by other gold
producers. Management uses this generally accepted industry
measure in evaluating operating performance and believes it to be
a realistic indication of such performance. The data also
indicates the Company's ability to generate cash flow and
operating earnings at various gold prices. This additional
information should be considered together with other data prepared
in accordance with US GAAP.
Amortization expense increased 39% to $4.5 million in the first quarter of 2003
from $3.2 million in the first quarter of 2002. The increase in amortization is
attributable to the increased mill throughput of 26% and increased capital base
resulting from the Company's expansion of the LaRonde Mine to 7,000 tons of ore
treated per day.
Income and mining taxes increased to $0.6 million in the first quarter of 2003
from nil in the first quarter of 2002. The Company does not expect to pay cash
income and mining taxes in 2003 however accrues deferred income and mining taxes
to reflect the drawdown of tax pools.
LIQUIDITY AND CAPITAL RESOURCES
At March 31 2003, Agnico-Eagle's consolidated cash and cash equivalents were
$141 million while working capital was $174 million. At December 31, 2002, the
Company had $153 million in cash and cash equivalents and $185 million in
working capital. Including the undrawn portion of its bank credit facility, the
Company had $241 million of available cash resources at March 31, 2003 compared
to $253 million at December 31, 2002. The Company currently has $100 million in
More... 8
undrawn credit and expects to have an additional $25 million available in the
fourth quarter of 2003 once certain completion tests are satisfied in connection
with the LaRonde expansion to 7,000 tons per day.
Cash flow from operating activities, before working capital changes, was $(0.6)
million in the first quarter of 2003 compared to $5.0 million in the first
quarter of 2002. Operating cash flow was impacted by lower gold production, a
higher El Coco royalty, lower byproduct zinc production and a stronger Canadian
dollar offset partially by higher byproduct copper and silver production.
For the three months ended March 31, 2003, capital expenditures were $10.8
million compared to $14.3 million in the first quarter of 2002. The decrease is
due to the Company having substantially completed the expansion of the LaRonde
Mine to 7,000 tons per day. For the full year 2003, capital expenditures are
expected to be $39 million, including $36 million at LaRonde and $3 million on
other properties. The Company expects to fund these expenditures from operating
cash flow and existing cash balances.
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SUMMARIZED QUARTERLY DATA (UNAUDITED) AGNICO-EAGLE MINES LIMITED
-------------------------------------------------------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
except where noted) 2003 2002
-------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED FINANCIAL DATA
INCOME AND CASH FLOW
LARONDE DIVISION
Revenues from mining operations $ 30,112 $ 25,547
Mine operating costs 24,347 17,603
-------------------------------------------------------------------------------------------------------------------------
Mine operating profit $ 5,765 $ 7,944
-----------------------------------------------------------------------------------------------==========================
Net income (loss) for period $ (6,237) $ 477
Net income (loss) per share $ (0.07) $ 0.01
Operating cash flow (before non-cash working capital) $ (577) $ 4,972
Weighted average number of shares - basic (in thousands) 83,725 68,006
Tons of ore milled 602,633 477,333
Head grades:
Gold 0.10 0.14
Silver 2.44 2.52
Zinc 3.55% 5.24%
Copper 0.45% 0.22%
Recovery rates:
Gold 91.66% 94.54%
Silver 83.80% 83.70%
Zinc 78.20% 84.90%
Copper 79.10% 60.30%
Payable production:
Gold (ounces) 55,005 60,259
Silver (ounces in thousands) 1,036 724
Zinc (pounds in thousands) 27,964 35,997
Copper (pounds in thousands) 3,956 1,131
Realized prices per unit of production:
Gold (per ounce) $ 350 $ 300
Silver (per ounce) $ 4.70 $ 4.48
Zinc (per pound) $ 0.35 $ 0.36
Copper (per pound) $ 0.76 $ 0.72
Onsite operating costs per ton milled (Canadian dollars) $ 52 $ 52
-----------------------------------------------------------------------------------------------==========================
OPERATING COSTS PER GOLD OUNCE PRODUCED:
Onsite operating costs (including asset retirement expenses) $ 378 $ 258
Less: Non-cash asset retirement expenses (2) (5)
Net byproduct revenues (207) (124)
-------------------------------------------------------------------------------------------------------------------------
CASH OPERATING COSTS $ 169 $ 129
Accrued El Coco royalties 74 32
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TOTAL CASH COSTS $ 243 $ 161
Non-cash costs:
Reclamation provision 2 5
Depreciation and amortization 82 54
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Total operating costs $ 327 $ 220
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CONSOLIDATED BALANCE SHEETS AGNICO-EAGLE MINES LIMITED
-------------------------------------------------------------------------------------------------------------------
(thousands of United States dollars, US GAAP BASIS) March 31, December 31,
2003 2002
-------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
ASSETS
Current
Cash and cash equivalents $ 141,238 $ 152,934
Metals awaiting settlement 25,465 29,749
Income taxes recoverable 2,341 2,900
Inventories:
Ore stockpiles 5,116 4,604
In-process concentrates 1,411 1,008
Supplies 4,916 5,008
Prepaid expenses and other 9,027 10,025
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Total current assets 189,514 206,228
Fair value of derivative financial instruments 2,437 1,835
Investments and other assets 9,514 8,795
Future income and mining tax assets 23,664 23,890
Mining properties 361,289 353,059
-------------------------------------------------------------------------------------------------------------------
$ 586,418 $ 593,807
---------------------------------------------------------------------------========================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities $ 14,576 $ 15,246
Dividends payable 706 3,013
Income and mining taxes payable - 954
Interest payable 260 1,873
-------------------------------------------------------------------------------------------------------------------
Total current liabilities 15,542 21,086
-------------------------------------------------------------------------------------------------------------------
Long-term debt 143,750 143,750
-------------------------------------------------------------------------------------------------------------------
Fair value of derivative financial instruments - 5,346
-------------------------------------------------------------------------------------------------------------------
Asset retirement obligation and other liabilities 8,846 5,043
-------------------------------------------------------------------------------------------------------------------
Future income and mining tax liabilities 22,215 20,889
-------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common shares
Authorized - unlimited
Issued - 83,767,794 (2002 - 83,636,861) 593,216 591,969
Warrants 15,732 15,732
Contributed surplus 7,181 7,181
Deficit (202,260) (196,023)
Accumulated other comprehensive loss (17,804) (21,166)
-------------------------------------------------------------------------------------------------------------------
Total shareholders' equity 396,065 397,693
-------------------------------------------------------------------------------------------------------------------
$ 586,418 $ 593,807
---------------------------------------------------------------------------========================================
NOTE: CERTAIN ITEMS HAVE BEEN RECLASSIFIED FROM FINANCIAL STATEMENTS PREVIOUSLY
PRESENTED TO CONFORM TO THE CURRENT PRESENTATION.
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CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) AGNICO-EAGLE MINES LIMITED
-------------------------------------------------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
except per share amounts, US GAAP BASIS) 2003 2002
-------------------------------------------------------------------------------------------------------------------
REVENUES
Revenues from mining operations $ 30,112 $ 25,547
INTEREST AND SUNDRY INCOME 641 36
-------------------------------------------------------------------------------------------------------------------
30,753 25,583
COSTS AND EXPENSES
Production 24,347 17,603
Exploration and corporate development 1,472 749
Depreciation and amortization 4,517 3,251
General and administrative 1,467 1,001
Provincial capital tax 489 380
Interest 2,217 1,916
Foreign currency gain (217) -
-------------------------------------------------------------------------------------------------------------------
Income (loss) before income, mining and federal capital taxes (3,539) 683
Federal capital tax 325 206
Income and mining tax expense 630 -
-------------------------------------------------------------------------------------------------------------------
Income (loss) before cumulative catch-up adjustment (4,494) 477
Cumulative catch-up adjustment relating to asset retirement obligations (1,743) -
-------------------------------------------------------------------------------------------------------------------
Net income (loss) for the period $ (6,237) $ 477
-------------------------------------------------------------------------------------------------------------------
Net income (loss) before cumulative catch-up adjustment per share,
basic and diluted $ (0.05) $ 0.01
Cumulative catch-up adjustment per share - basic and diluted (0.02) -
-------------------------------------------------------------------------------------------------------------------
Net income (loss) per share - basic and diluted $ (0.07) $ 0.01
-------------------------------------------------------------------------------------------------------------------
Weighted average number of shares (in thousands)-
basic 83,725 68,006
diluted 84,552 79,283
-------------------------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS):
NET INCOME (LOSS) FOR THE PERIOD $ (6,237) $ 477
OTHER COMPREHENSIVE INCOME (LOSS):
UNREALIZED GAIN (LOSS) ON HEDGING ACTIVITIES 3,227 (1,833)
UNREALIZED GAIN ON AVAILABLE FOR SALE SECURITIES 135 -
-------------------------------------------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME (LOSS) 3,362 (1,833)
-------------------------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD $ (2,875) $ (1,356)
-------------------------------------------------------------------------------------------------------------------
NOTE: CERTAIN ITEMS HAVE BEEN RECLASSIFIED FROM FINANCIAL STATEMENTS PREVIOUSLY
PRESENTED TO CONFORM TO THE CURRENT PRESENTATION.
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CONSOLIDATED STATEMENTS OF DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE LOSS (UNAUDITED) AGNICO-EAGLE MINES LIMITED
-------------------------------------------------------------------------------------------------------------------
(thousands of United States dollars, Three months ended March 31,
except per share amounts, US GAAP BASIS) 2003 2002
-------------------------------------------------------------------------------------------------------------------
DEFICIT
Balance, beginning of period $ (196,023) $ (197,220)
Net income (loss) for the period (6,237) 477
-------------------------------------------------------------------------------------------------------------------
Balance, end of period $ (202,260) $ (196,473)
-------------------------------------------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE LOSS
Balance, beginning of period $ (21,166) $ (15,576)
Other comprehensive income (loss) for the period 3,362 (1,833)
-------------------------------------------------------------------------------------------------------------------
Balance, end of period $ (17,804) $ (17,409)
-------------------------------------------------------------------------------------------------------------------
NOTE: CERTAIN ITEMS HAVE BEEN RECLASSIFIED FROM FINANCIAL STATEMENTS PREVIOUSLY
PRESENTED TO CONFORM TO THE CURRENT PRESENTATION.
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) AGNICO-EAGLE MINES LIMITED
------------------------------------------------------------------------------------------------------------------------------
(thousands of United States dollars, US GAAP BASIS) Three months ended March 31,
2003 2002
------------------------------------------------------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net income (loss) for the period $ (6,237) $ 477
Add (deduct) items not affecting cash from operating activities:
Depreciation and amortization 4,517 3,251
Provision for (recoveries of) future income and mining taxes 1,326 -
Unrealized (gain) loss on derivative contracts (2,270) -
Cumulative catch-up adjustment related to asset retirement obligations 1,743 -
Amortization of deferred costs and other 344 1,244
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Cash flow from operations, before working capital changes (577) 4,972
Change in non-cash working capital balances
Metals awaiting settlement 4,119 (9,153)
Income taxes recoverable (395) (594)
Inventories (823) 229
Prepaid expenses and other 571 (2,174)
Accounts payable and accrued liabilities (670) 1,330
Interest payable (1,613) (1,667)
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Cash flows from (used in) operating activities 612 (7,057)
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INVESTING ACTIVITIES
Additions to mining properties (10,837) (14,252)
INCREASE IN INVESTMENTS AND OTHER (188) (9)
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Cash flows used in investing activities (11,025) (14,261)
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FINANCING ACTIVITIES
Dividends paid (2,431) (1,289)
Common shares issued 1,195 5,226
Proceeds from long-term debt - 143,750
Financing costs - (5,266)
Repayment of the Company's senior convertible notes - (121,971)
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Cash flows from (used in) financing activities (1,236) 20,450
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Effect of exchange rate changes on cash and cash equivalents (47) (17)
Net decrease in cash and cash equivalents (11,696) (885)
Cash and cash equivalents, beginning of period 152,934 21,180
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Cash and cash equivalents, end of period $ 141,238 $ 20,295
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OTHER OPERATING CASH FLOW INFORMATION:
Interest paid during the period $ 3,602 $ 19,397
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Taxes paid (recovered) during the period $ - $ 3,329
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NOTE: CERTAIN ITEMS HAVE BEEN RECLASSIFIED FROM FINANCIAL STATEMENTS PREVIOUSLY
PRESENTED TO CONFORM TO THE CURRENT PRESENTATION.
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