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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

Pursuant to Rule 13a-16 or 15d-16 of
The Securities Exchange Act of 1934

For the Month of May 2005

AGNICO-EAGLE MINES LIMITED
(Translation of registrant's name into English)

145 King Street East, Suite 500, Toronto, Ontario M5C 2Y7
(Address of Principal Executive Offices) (Zip Code)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   ý   Form 40-F   o

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   o   No   ý

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: May 13, 2005

 

 

 

 

 

By:

/s/  
DAVID GAROFALO      
David Garofalo
Vice-President, Finance and
Chief Financial Officer

LOGO

First Quarter Report 2005


QUARTERLY MANAGEMENT DISCUSSION AND ANALYSIS
UNITED STATES GAAP
(all figures are expressed in US dollars unless otherwise noted)

Results of Operations

        Agnico-Eagle reported first quarter net income of $10.4 million, or $0.12 per share, compared to net income of $12.9 million, or $0.15 per share, in the first quarter of 2004. Gold production in the first quarter of 2005 was 55,310 ounces compared to 70,188 ounces in the first quarter of 2004. Cash flow provided by operating activities was $28.1 million in the quarter compared to $6.2 million in the prior year's first quarter.

        Year to date ore processed increased 4% to 715,121 tons in the first three months of 2005 compared to 689,176 tons in the same period in 2004.

        The table below summarizes the key variances in net income for the first quarter of 2005 from the net income reported for the same period in 2004.

(millions of dollars)

  First Quarter
 
Decrease in gold production   $ (6.1 )
Increase in gold price     0.9  
Decrease in copper and silver revenues     (1.8 )
Increase in zinc revenue     7.5  
Reversal of prior year inventory build-up and settlement adjustments     9.6  
Stronger Canadian dollar, net of hedges     (2.9 )
Increased amortization     (1.6 )
Cost of increased ore throughput     (0.8 )
Non-cash mark-to-market on byproduct metal hedges     (3.4 )
Corporate costs and other     (3.9 )
   
 
Net negative variance   $ (2.5 )
   
 

        In the first quarter of 2005, revenue from mining operations increased $13.2 million to $61.8 million from $48.6 million in the first quarter of 2004. While realized prices for all metals increased in 2005 compared to the first quarter of 2004, these increased metal prices were offset by lower gold, silver and copper production. The decreased production volume for these metals was offset by a 12% increase in zinc production. Revenue was also positively impacted by the reversal of the large copper concentrate inventory which had built up at December 31, 2004 and by positive settlement adjustments resulting from price increases for all metals.

        The continued strength of the Canadian dollar had a negative impact on our production costs. In the first quarter of 2004, the impact of the rising dollar was somewhat mitigated by delivering into foreign exchange hedges which allowed us to sell US dollars at a C$/US$ exchange rate of $1.59; well above the prevailing spot price in the first quarter of 2004. The impact of our foreign exchange hedges had a much smaller impact in the first quarter of 2005 thereby resulting in increased production costs. Production costs also increased slightly as a result of the 4% increase in ore throughput in the first quarter of 2005.

        In the first quarter of 2005, we recorded an unrealized, mark-to-market loss on byproduct metals derivative contracts of $3.4 million, or $0.04 per share. These byproduct metals contracts were entered into in the first quarter of 2005.

        Exploration costs increased in the first quarter of 2005 compared to the first quarter of 2004 due to increased exploration activities around our LaRonde mine. Also contributing to the increased exploration expense were expenditures on U.S. properties purchased from Contact Diamond Corporation, the Company's 44% equity investee, in the fourth quarter of 2004.

        Exploration expenditures in the first quarter of 2005 were also impacted by the previously announced option agreement with Industrias Penñoles S.A. de C.V. ("Penñoles") to acquire the Pinos Altos project located in the Sierra Madre gold belt of Mexico. Exploration work on the Pinos Altos project commenced in the first quarter of 2005. Equity losses in Contact Diamond Corporation ("Contact") and Riddarhyttan Resources, AB

1



("Riddarhyttan") also increased in the first quarter of 2005 compared to 2004. The first quarter of 2004 did not include equity losses from Riddarhyttan as the Company purchased its 14% stake in May 2004. Equity losses from Contact increased in the first quarter of 2005 as Contact increased its field exploration activities relating to its potential diamond deposits.

        Amortization was $1.6 million higher in the first quarter of 2005 compared to 2004 due to the reversal of the copper concentrate inventory which had built up at the end of 2004 as the amortization relating to the production of those concentrates is recognized in the same period as the related revenue. General and administrative expenditures increased $2.0 million primarily due to the expensing of stock options granted. The compensation expense related to these options recognized in the first quarter of 2005 was $1.2 million, or $0.01 per share. Interest costs also increased in the first quarter of 2005 due to payments made under our interest rate swap as a result of increasing 3-month LIBOR rates.

        In the first quarter of 2005 total cash costs per ounce decreased to $67 per ounce of gold produced from $78 per ounce in the first quarter of 2004. The main driver leading to the decrease in total cash costs for the quarter were higher byproduct metal prices, offset partially by lower gold production. Minesite costs per ton was unchanged at C$48 in the first quarter of 2005 compared to the first quarter of 2004. As total cash costs are calculated on a production basis, the reversal of the prior quarter's copper concentrate buildup did not affect total cash costs.

        The following tables provide a reconciliation of the total cash costs per ounce of gold produced and operating cost per ton to the financial statements:

(thousands of dollars, except where noted)
  Q1 2005
  Q1 2004
 
Production costs per Consolidated Statement of Income   $ 30,973   $ 24,141  
Adjustments:              
  Byproduct revenues, net of smelting, refining and marketing charges     (25,261 )   (18,210 )
  Inventory adjustment(i)     (1,894 )   (294 )
  Accretion expense and other     (107 )   (131 )
   
 
 
Cash costs   $ 3,711   $ 5,506  
Gold production (ounces)     55,310     70,188  
   
 
 
Total cash costs (per ounce)   $ 67   $ 78  
   
 
 
(thousands of dollars, except where noted)
  Q1 2005
  Q1 2004
 
Production costs per Consolidated Statement of Income   $ 30,973   $ 24,141  
Adjustments:              
  Inventory(i) and hedging adjustments(ii)     (3,220 )   865  
  Accretion expense and other     (107 )   (131 )
   
 
 
Minesite costs (US$)   $ 27,646   $ 24,875  
   
 
 
Minesite costs (C$)   $ 33,918   $ 32,790  
Tons milled (000's tons)     715     689  
   
 
 
Minesite costs per ton (C$)(iii)   $ 48   $ 48  
   
 
 

Notes:

(i)
Under the Company's revenue recognition policy, revenue is recognized on concentrates when legal title passes. Since total 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 period.

(ii)
Hedging adjustments reflect realized gains and losses on the Company's derivative positions entered into to hedge the effects of foreign exchange fluctuations on production costs. These items are not reflective of operating performance and thus have been eliminated when calculating minesite costs per ton.

(iii)
Total cash costs and minesite costs per ton data are not a recognized measures under US GAAP. Management uses these generally accepted industry measures in evaluating operating performance and believes them to be realistic indications of such performance. The

2


        Taking into consideration year to date performance, the Company's has revised its gold production targets to 270,000 ounces. LaRonde's total cash costs are expected to be below $100 per ounce, as lower gold production is offset by higher byproduct production and metal prices.

Liquidity and Capital Resources

        At March 31, 2005, Agnico-Eagle's cash and cash equivalents balance was $97.1 million, restricted cash was $4.7 million, short-term investments were $15.3 million, while working capital was $184.9 million. At December 31, 2004, the Company had $33.0 million in cash and cash equivalents, $8.2 million of restricted cash, $64.8 million of short-term investments and $177.3 million in working capital. The Company's policy is to invest excess cash in highly liquid investments of the highest credit quality to eliminate any risks associated with these investments. Such investments with original maturities greater than three months are classified as short-term investments and decisions regarding the length of maturities are based on cash flow requirements, rates of returns and other various factors. As of March 31, 2005, the majority of highly liquid investments had original maturities of three months or less and therefore contributed to the increase in cash and cash equivalents. The total of cash & cash equivalents, restricted cash and short-term investments was $117.1 million at March 31, 2005 and $106.0 million at December 31, 2004.

        Cash flow provided by operating activities was positively impacted by higher gold and byproduct metal prices partially offset by lower gold production when compared to the first quarter of 2004. Working capital changes also contributed to the stronger operating cash flow in the quarter due to the reversal of the copper concentrate buildup experienced at the end of 2004 and the receipt of income tax refunds.

        Cash flow provided by operating activities was $28.1 million in the first quarter of 2005 compared to $6.2 million in the first quarter of 2004.

        In addition, the Company currently has $91 million in undrawn credit lines. Although there are currently no amounts drawn on the $100 million credit facility, the amount available under the facility is reduced by outstanding letters of credit. The facility limits, among other things, the Company's ability to incur additional indebtedness, pay dividends, make investments or loans, transfer assets or make expenditures that are not consistent with mine plans and operating budgets delivered pursuant to the facility. The facility also requires the Company to maintain specified financial ratios and meet financial condition covenants. Letters of credit issued as security for pension and environmental obligations decrease the amount available under the facility.

        For the three months ended March 31, 2005, capital expenditures were $15.2 million compared to $10.2 million in the first quarter of 2004. Capital expenditures at the LaRonde mine increased to $9.4 million from $7.5 million in the first quarter of 2004. The remainder of the capital expenditures in 2005 represents continued expenditures for the Company's regional projects, namely Lapa, Goldex and LaRonde II. Capital expenditures for these projects increased by $3.2 million compared to the first quarter of 2004 as shaft sinking commenced at Lapa in the first quarter of 2005. For the full year, forecasted capital expenditures are essentially in line with the original budget of $41.9 million.

        The Company expects to continue to fund its current project expenditures with internally generated funds. The Company's ability to continue generating cash flow is dependent on continued strength in gold and byproduct metal prices and continued cost savings generated from economies of scale at LaRonde as the mill processes more tons of ore.

3


AGNICO-EAGLE MINES LIMITED
SUMMARIZED QUARTERLY DATA
(thousands of United States dollars, except where noted, US GAAP basis)
(Unaudited)

 
  Three months ended March 31,
 
 
  2005
  2004
 
Income and cash flow              
LaRonde Division              
Revenues from mining operations   $ 61,766   $ 48,604  
Production costs     30,973     24,141  
   
 
 
Gross profit (exclusive of amortization shown below)   $ 30,793     24,463  
Amortization     7,211     5,582  
   
 
 
Gross profit   $ 23,582     18,881  
   
 
 
Net income for the period   $ 10,449   $ 12,909  
Net income per share (basic and diluted)   $ 0.12   $ 0.15  
Cash flow provided by operating activities   $ 28,105   $ 6,219  
Cash flow provided by investing activities   $ 37,149   $ 42,485  
Cash flow used in financing activities   $ (1,095 ) $ (1,068 )
Weighted average number of common shares outstanding — basic (in thousands)     86,131     84,525  

Tons of ore milled

 

 

715,121

 

 

689,176

 
Head grades:              
  Gold (oz. per ton)     0.09     0.11  
  Silver (oz. per ton)     2.13     2.30  
  Zinc     4.13%     3.90%  
  Copper     0.39%     0.55%  
Recovery rates:              
  Gold     90.56%     92.19%  
  Silver     83.60%     84.93%  
  Zinc     81.70%     81.81%  
  Copper     77.10%     79.94%  
Payable metal produced:              
  Gold (ounces)     55,310     70,188  
  Silver (ounces in thousands)     1,097     1,128  
  Zinc (pounds in thousands)     41,141     36,647  
  Copper (pounds in thousands)     3,989     5,840  
Payable metal sold:              
  Gold (ounces)     70,137     70,470  
  Silver (ounces in thousands)     1,398     1,128  
  Zinc (pounds in thousands)     37,454     36,804  
  Copper (pounds in thousands)     6,216     5,855  
Realized prices per unit of production:              
  Gold (per ounce)   $ 430   $ 412  
  Silver (per ounce)   $ 6.85   $ 6.72  
  Zinc (per pound)   $ 0.60   $ 0.47  
  Copper (per pound)   $ 1.47   $ 1.25  

Total cash costs (per ounce):

 

 

 

 

 

 

 
Production costs   $ 560   $ 344  
Less: Net byproduct revenues     (455 )   (260 )
          Inventory adjustments     (36 )   (4 )
          Accretion expense and other     (2 )   (2 )
   
 
 
Total cash costs (per ounce)   $ 67   $ 78  
   
 
 
Minesite costs per ton milled (Canadian dollars)   $ 48   $ 48  
   
 
 

4


AGNICO-EAGLE MINES LIMITED
SUMMARIZED QUARTERLY DATA
(thousands of United States dollars, except where noted)

 
  June 30, 2003
  September 30, 2003
  December 31, 2003
  March 31, 2004
  June 30, 2004
  September 30, 2004
  December 31, 2004
  March 31, 2005
 
Consolidated Financial Data                                                  

Income and cash flows

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
LaRonde Division                                                  
Revenues from mining operation   $ 30,014   $ 24,845   $ 41,849   $ 48,604   $ 45,664   $ 47,986   $ 45,795   $ 61,766  
Production costs     24,581     25,909     30,153     24,141     25,680     26,172     22,175     30,973  
   
 
 
 
 
 
 
 
 

Gross profit (exclusive of amortization shown below)

 

$

5,433

 

$

(1,064

)

$

11,696

 

$

24,463

 

$

19,984

 

$

21,814

 

$

23,620

 

$

30,793

 
Amortization   $ 4,787   $ 4,471   $ 3,729     5,582     5,859     5,861     4,461     7,211  
   
 
 
 
 
 
 
 
 

Gross profit

 

$

646

 

$

(5,535

)

$

7,967

 

$

18,881

 

$

14,125

 

$

15,953

 

$

19,159

 

$

23,582

 
   
 
 
 
 
 
 
 
 

Net income (loss) for the period

 

$

(3,779

)

$

(11,869

)

$

2,387

 

$

12,909

 

$

8,805

 

$

10,556

 

$

15,609

 

$

10,449

 
Net income (loss) per share (basic and diluted)   $ (0.05 ) $ (0.14 ) $ 0.03   $ 0.15   $ 0.11   $ 0.12   $ 0.18   $ 0.12  
Cash flow provided by operating activities   $ (2,823 ) $ 761   $ 5,703   $ 6,219   $ 14,901   $ 16,683   $ 11,722   $ 28,105  
Cash flow provided by investing activities   $ (18,370 ) $ (62,542 ) $ (13,970 ) $ 42,485   $ (23,493 ) $ (84,020 ) $ (28,820 ) $ 37,149  
Cash flow used in financing activities   $ 1,125   $ 4,640   $ 910   $ (1,068 ) $ 1,552   $ 18,540   $ 2,149   $ (1,095 )
Weighted average number of common shares outstanding (Basic — in thousands)     83,836     83,954     84,424     84,525     84,648     84,791     85,989     86,131  

5


AGNICO-EAGLE MINES LIMITED
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, US GAAP basis)
(Unaudited)

 
  As at
March 31,
2005

  As at
December 31,
2004

 
ASSETS              
Current              
Cash and cash equivalents   $ 97,158   $ 33,005  
Restricted cash     4,701     8,173  
Short-term investments     15,255     64,836  
Metals awaiting settlement     41,689     43,442  
Income taxes recoverable     13,154     16,105  
Inventories:              
  Ore stockpiles     10,451     9,036  
  Concentrates     4,136     9,065  
  Supplies     8,564     8,292  
Other current assets     19,659     19,843  
   
 
 
Total current assets     214,767     211,797  
Fair value of derivative financial instruments     2,525     2,689  
Other assets     23,818     25,234  
Future income and mining tax assets     52,952     51,407  
Mining properties     436,402     427,037  
   
 
 
    $ 730,464   $ 718,164  
   
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 
Current              
Accounts payable and accrued liabilities   $ 28,200   $ 28,667  
Dividends payable     841     3,399  
Interest payable     809     2,426  
   
 
 
Total current liabilities     29,850     34,492  
   
 
 
Fair value of derivative financial instruments     3,439      
   
 
 
Long-term debt     141,083     141,495  
   
 
 
Reclamation provision and other liabilities     14,979     14,815  
   
 
 
Future income and mining tax liabilities     58,228     57,136  
   
 
 
Shareholders' equity              
Common shares              
  Authorized — unlimited              
  Issued — 86,192,939 (2004 — 86,072,779)     622,167     620,704  
Stock options     1,988     465  
Warrants     15,732     15,732  
Contributed surplus     7,181     7,181  
Deficit     (162,307 )   (172,756 )
Accumulated other comprehensive loss     (1,876 )   (1,100 )
   
 
 
Total shareholders' equity     482,885     470,226  
   
 
 
    $ 730,464   $ 718,164  
   
 
 

See accompanying notes

6


AGNICO-EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(thousands of United States dollars except per share amounts, US GAAP basis)
(Unaudited)

 
  Three months ended March 31,
 
 
  2005
  2004
 
REVENUES              
Revenues from mining operations   $ 61,766   $ 48,604  
Interest and sundry     648     421  
   
 
 
      62,414     49,025  

COSTS AND EXPENSES

 

 

 

 

 

 

 
Production     30,973     24,141  
Fair value of derivative financial instruments     3,439     216  
Exploration and corporate development     2,763     290  
Equity loss in junior exploration companies     1,134     289  
Amortization     7,211     5,582  
General and administrative     3,749     1,799  
Provincial capital tax     599     455  
Interest     2,552     1,757  
Foreign currency loss (gain)     (384 )   139  
   
 
 
Income before income, mining and federal capital taxes     10,378     14,357  
Federal capital tax     248     266  
Income and mining tax expense (recoveries)     (319 )   1,182  
   
 
 
Net income for the period   $ 10,449   $ 12,909  
   
 
 
Net income per share — basic and diluted   $ 0.12   $ 0.15  
   
 
 
Weighted average number of shares (in thousands)              
  Basic     86,131     84,525  
  Diluted     86,545     85,051  

Comprehensive income:

 

 

 

 

 

 

 
Net income for the period   $ 10,449   $ 12,909  
   
 
 

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 
  Unrealized gain on hedging activities     93     185  
  Unrealized loss on available-for-sale securities     (154 )   (442 )
  Cumulative translation adjustment on equity investee     (696 )    
  Adjustments for derivative instruments maturing during the period     (19 )   (784 )
  Adjustments for realized gains on available-for-sale securities due to dispositions during the period         (508 )
   
 
 
Other comprehensive loss for the period     (776 )   (1,549 )
   
 
 
Total comprehensive income for the period   $ 9,673   $ 11,360  
   
 
 

See accompanying notes

7


AGNICO-EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(thousands of United States dollars, US GAAP basis)
(Unaudited)

 
  Three months ended March 31,
 
 
  2005
  2004
 
Deficit              
Balance, beginning of period   $ (172,756 ) $ (218,055 )
Net income for the period     10,449     12,909  
   
 
 
Balance, end of period   $ (162,307 ) $ (205,146 )
   
 
 

Accumulated other comprehensive loss

 

 

 

 

 

 

 
Balance, beginning of period   $ (1,100 ) $ (5,440 )
Other comprehensive loss for the period     (776 )   (1,549 )
   
 
 
Balance, end of period   $ (1,876 ) $ (6,989 )
   
 
 

See accompanying notes

8


AGNICO-EAGLE MINES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
(thousands of United States Dollars, US GAAP basis)
(Unaudited)

 
  Three months ended March 31,
 
 
  2005
  2004
 
Operating activities              
Net income for the period   $ 10,449   $ 12,909  
Add (deduct) items not affecting cash:              
  Amortization     7,211     5,582  
  Future income and mining taxes     (319 )   1,957  
  Unrealized loss on derivative contracts     3,439     216  
  Amortization of deferred costs and other     2,681     158  
Changes in non-cash working capital balances              
  Metals awaiting settlement     1,753     (7,847 )
  Income taxes recoverable     2,951     (1,116 )
  Inventories     1,703     (1,671 )
  Prepaid expenses and other     337     1,700  
  Accounts payable and accrued liabilities     (483 )   (3,306 )
  Interest payable     (1,617 )   (2,363 )
   
 
 
Cash provided by operating activities     28,105     6,219  
   
 
 

Investing activities

 

 

 

 

 

 

 
Additions to mining properties     (15,182 )   (10,223 )
Decrease in short-term investments     49,581     50,882  
Increase (decrease) in investments and other     (722 )   842  
Decrease in restricted cash     3,472     984  
   
 
 
Cash provided by investing activities     37,149     42,485  
   
 
 

Financing activities

 

 

 

 

 

 

 
Dividends paid     (2,542 )   (2,480 )
Common shares issued     1,447     1,412  
   
 
 
Cash used in financing activities     (1,095 )   (1,068 )
   
 
 
Effect of exchange rate changes on cash and cash equivalents     (6 )   52  
   
 
 
Net increase in cash and cash equivalents during the period     64,153     47,688  
Cash and cash equivalents, beginning of period     33,005     56,934  
   
 
 
Cash and cash equivalents, end of period   $ 97,158   $ 104,622  
   
 
 

Other operating cash flow information:

 

 

 

 

 

 

 
Interest paid during the period   $ 3,824   $ 3,113  
   
 
 
Income, mining and capital taxes paid (recovered) during the period   $ (2,527 ) $ 1,161  
   
 
 

See accompanying notes

9


AGNICO-EAGLE MINES LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(thousands of United States dollars except per share amounts, unless otherwise indicated)
(Unaudited)
March 31, 2005

1.     BASIS OF PRESENTATION

2.     USE OF ESTIMATES

3.     ACCOUNTING POLICIES

4.     CAPITAL STOCK

Common shares outstanding at March 31, 2005   86,192,939
Convertible debentures [based on debenture holders' option]   10,267,919
Employees' stock options   3,025,100
Warrants   6,900,000
   
    106,385,958
   

10


5.     STOCK-BASED COMPENSATION

 
  Three months ended March 31, 2005
 
  Options
  Weighted average exercise price
Outstanding, beginning of period   2,383,150   C$ 15.16
Granted   770,500   C$ 16.87
Exercised   (49,750 ) C$ 12.52
Cancelled   (78,800 ) C$ 16.33
   
 
Outstanding, end of period   3,025,100   C$ 15.61
   
 
Options exercisable at end of period   2,179,850   C$ 15.14

6.     FINANCIAL INSTRUMENTS

 
  Expected Maturity
 
  2005
  2006
Silver        
  Put options purchased        
    Ounces   751,500   167,000
    Average price ($/ounce)   $7.00   $7.00

Copper

 

 

 

 
  Call options sold        
    Pounds (000s)   7,441   1,653
    Average price ($/pound)   $1.50   $1.50

Zinc

 

 

 

 
  Forwards        
      Pounds (000s)   19,841   26,455
      Average price ($/pound)   $0.57   $0.56
  Put options purchased        
      Pounds (000s)   19,841   26,455
      Average price ($/pound)   $0.55   $0.55
  Call options sold        
      Pounds (000s)   19,841   26,455
      Average price ($/pound)   $0.67   $0.67

11


 
  Expected Maturity
 
  2005
  2006
US$ call options sold            
Amount (thousands)   $ 9,000   $ 12,000
C$/US$ weighted average exchange rate     1.6050     1.6475

US$ put options purchased

 

 

 

 

 

 
Amount (thousands)   $ 9,000   $ 12,000
C$/US$ weighted average exchange rate     1.5000     1.5600

US$ put options sold

 

 

 

 

 

 
Amount (thousands)   $ 9,000    
C$/US$ weighted average exchange rate     1.3700    

7.     SUBSEQUENT EVENT

8.     DIFFERENCES FROM CANADIAN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

12


13



 
  As at March 31, 2005
  As at December 31, 2004
 
 
  Notes
  US GAAP
  Adjustments
  Canadian GAAP
  US GAAP
  Adjustments
  Canadian GAAP
 
 
   
   
   
   
   
   
  (restated)
 
ASSETS                                          
Current                                          
  Cash and cash equivalents       $ 97,158       $ 97,158   $ 33,005       $ 33,005  
  Restricted cash         4,701         4,701     8,173         8,173  
  Short-term investments         15,255         15,255     64,836         64,836  
  Metals awaiting settlement         41,689         41,689     43,442         43,442  
  Income taxes recoverable         13,154         13,154     16,105         16,105  
  Inventories:                                          
    Ore stockpiles         10,451         10,451     9,036         9,036  
    Concentrates         4,136         4,136     9,065         9,065  
    Supplies         8,564         8,564     8,292         8,292  
  Other current assets   (b)     19,659     (1,993 )   17,666     19,843     (2,147 )   17,696  
       
 
 
 
 
 
 
Total current assets         214,767     (1,993 )   212,774     211,797     (2,147 )   209,650  
Fair value of derivative financial instruments   (a)     2,525     (2,525 )       2,689     (2,689 )    
Other assets   (c)     23,818     3,805     27,623     25,234     4,230     29,464  
Future income and mining tax assets   (d)     52,952     1,293     54,245     51,407     1,239     52,646  
Mining properties   (e)     436,402     3,372     439,774     427,037     3,349     430,386  
       
 
 
 
 
 
 
        $ 730,464   $ 3,952   $ 734,416   $ 718,164   $ 3,982   $ 722,146  
       
 
 
 
 
 
 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Current                                          
  Accounts payable and accrued liabilities       $ 28,200       $ 28,200   $ 28,667       $ 28,667  
  Dividends payable         841         841     3,399         3,399  
  Interest payable         809         809     2,426         2,426  
       
 
 
 
 
 
 
Total current liabilities         29,850         29,850     34,492         34,492  
       
 
 
 
 
 
 
Fair value of derivative financial instruments   (a)     3,439     3,071     6,510         2,964     2,964  
       
 
 
 
 
 
 
                                         
Long-term debt   (c)     141,083     (40,946 )   100,137     141,495     (42,450 )   99,045  
       
 
 
 
 
 
 
Reclamation provision and other liabilities         14,979         14,979     14,815         14,815  
       
 
 
 
 
 
 
Future income and mining tax liabilities   (d)     58,228     356     58,584     57,136     422     57,558  
       
 
 
 
 
 
 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Common shares   (f) (g) (h)     622,167     (145,732 )   476,435     620,704     (145,732 )   474,972  
Stock options outstanding         1,988         1,988     465         465  
Other paid-in capital   (c)         55,028     55,028         55,028     55,028  
Warrants         15,732         15,732     15,732         15,732  
Contributed surplus   (f)     7,181     (1,621 )   5,560     7,181     (1,621 )   5,560  
Deficit   (f) (h)     (162,307 )   130,679     (31,628 )   (172,756 )   132,334     (40,422 )
Accumulated other comprehensive loss   (b)     (1,876 )   1,876         (1,100 )   1,100      
Cumulative translation adjustment   (b)         1,241     1,241         1,937     1,937  
       
 
 
 
 
 
 
Total shareholders' equity         482,885     41,471     524,356     470,226     43,046     513,272  
       
 
 
 
 
 
 
        $ 730,464   $ 3,952   $ 734,416   $ 718,164   $ 3,982   $ 722,146  
       
 
 
 
 
 
 

14



 
   
  For the years ended March 31
 
 
  Notes
  2005
  2004
 
 
   
   
  (restated)
 
Net income — US GAAP       $ 10,449   $ 12,909  
Interest and sundry income   (a) (c)     (795 )   78  
Amortization   (e)     (60 )    
Interest expense   (c)     (1,009 )   (850 )
Income and mining tax (expense) recovery   (d)     209     (388 )
       
 
 
Net income — Canadian GAAP       $ 8,794   $ 11,749  
       
 
 
Net income per share — basic and diluted       $ 0.10   $ 0.14  

15


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