Goldex And La India Expected To Commence Production

 

TORONTO - "This year is a building year for Agnico-Eagle as we prepare to bring two mines into production over the next several quarters. In the first quarter, our operations performed in line with expectations and we remain on track to achieve our 2013 production guidance" said Sean Boyd, President and Chief Executive Officer. "We are also pleased to announce that the expected startups at Goldex and La India are ahead of schedule. Goldex located in Quebec, is expected to commence production in the fourth quarter of 2013, while La India in Sonara, Mexico is scheduled to be in commercial production in the first quarter of 2014. These two mines are expected to make a meaningful contribution to the growth profile of the Company", added Boyd.

 

Operating highlights include: First quarter 2013 production and costs in line with expectations; Goldex initial production expected in fourth quarter 2013, ahead of schedule and on budget - Estimated to contribute approximately 15,000 ounces of gold in 2013; La India anticipated to start commissioning by year-end 2013, ahead of schedule - Construction proceeding well and on budget; Creston Mascota Phase Two leach pad now on line - leaching resumed at Creston Mascota in March 2013, approximately one month ahead of schedule; Record quarterly throughput at Meadowbank in Nunavut - the mill processed a record daily average of 11,320 tonnes during the first quarter; Scheduled mill maintenance at Kittila in Finland expected to take longer than planned - relining of autoclave expected to be complete in late June. Estimated production impact is approximately 10,000 - 15,000 fewer ounces of gold in 2013; Total cash cost per ounce guidance for 2013 revised upward to reflect current commodity prices and exchange rates - expected 2013 total cash costs to be between $735 and $785 per ounce.

Payable gold production in the first quarter of 2013 was 236,975 ounces compared to 254,955 ounces in the first quarter of 2012. The lower level of production in the 2013 period was primarily due to the Creston Mascota heap leach being suspended during most of the quarter.

Total cash costs for the first quarter of 2013 were $740 per ounce. This compares with $594 per ounce in the first quarter of 2012. The higher cost in 2013 was largely attributable to lower byproduct revenue at LaRonde in Quebec, lower grades at Meadowbank and a lack of production from the lower cost Creston Mascota mine, in Northern Mexico.

Agnico-Eagle's production guidance for 2013 remains unchanged at 970,000 to 1,010,000 ounces of gold, as the expected 15,000 ounce production from Goldex offsets anticipated production decrease at Kittila related to a longer than anticipated maintenance shutdown. The Company's cash cost estimates have been revised to reflect the production changes at Goldex and Kittila, as well as changes in commodity and currency price assumptions since the beginning of 2013.

First quarter 2013 cash provided by operating activities was $146.1 million ($134.5 million before changes in non-cash components of working capital), compared to cash provided by operating activities of $196.5 million in the first quarter of 2012 ($181.3 million before changes in non-cash components of working capital).