Agnico Eagle COVID-19 and Operations Update
Finland
Production
Kittila
Q3 YTD 2020
Highlights
Production and
Costs
AGNICO EAGLE
Nunavut
Production
163,069 ozs
at a production cost of
$812/oz and total cash
costs of $776/oz
Proven & probable gold
reserves: 4.1Moz
Q3 YTD 2020
Production and
The site operated continuously through the COVID-19 pandemic, it established a new quarterly ore production record in Q2 2020 and
delivered a strong performance in Q3 2020 exceeding forecasted ore tonnage and gold ounces
The permit allowing for processing of 2.0 million tonnes per annum was granted in May 2020
Completion of the mill expansion tie-in from September 22, 2020 to October 22, 2020. The commissioning of the expanded mill is
ongoing. With the underground mine ready to support a production profile of 2.0 million tonnes per annum, Kittila production flexibility
has significantly improved for Q4 2020 and for 2021
Shaft sinking is progressing at a lower rate than forecasted due to COVID-19 travel restrictions. Shaft commissioning is now expected
to be completed in H1 2022. With the delay in construction, combined with higher than expected costs, the Kittila expansion project is
now forecasted to cost between 190 to 200 million euros
Drilling has extended the Main and Sisar Zone by up to 500 metres to the south with intercepts such as 5.3 g/t gold over 3.9 metres
This drilling further enhances the potential of the Sisar Zone to be developed into a new mining horizon
Highlights
Meadowbank
Costs
Meliadine
140,679 ozs
at a production cost of
$1,494/oz and total cash
costs of $1,511/oz
Proven & probable gold
reserves: 3.3Moz
In H1 2020, following the declaration of a public health emergency in Nunavut, the Company reduced mining activities and suspended
milling activities and focused on reducing the maintenance backlog, and on increasing the overall 'mining footprint' of the Amaruq pit
Mining and milling activities ramped up in June 2020, and since then open pit production has shown consistent performance with an
average of approximately 3.3 million tonnes mined per month
LHT performance improved significantly in the last three weeks of September, with haulage averaging over 11,000 tpd. Three new LHT
received in Q3 2020, bringing the total fleet of LHT's to 26
In June 2020, permits were approved for mining of the IVR open pit and Amaruq underground deposits. In Q3 2020, the IVR pit
development was accelerated and the underground ramp development at Amaruq was restarted. A production decision for Amaruq U/G
is expected to be made in 2021
224,125 ozs
at a production cost of
$814/oz and total cash
costs of $822/oz
Proven & probable gold
reserves: 4.1Moz
On March 19, 2020, the Company reduced mining activities due to the declaration of a public health emergency in Nunavut. During this
period, the site successfully focused on increased backfilling of stopes, equipment maintenance and water management.
In Q3 2020, Meliadine had strong operating performance, delivering record quarterly production despite shutdowns related to mill
maintenance and upgrade activities. Mining of the first two stopes in the higher-grade RP3 horizon were completed as planned without
any increase to the ground water inflows. This new horizon is expected to provide additional mining flexibility in Q4 2020
In Q3 2020, the mill maintained average daily throughput of 4,150 tonnes despite several planned shutdowns. Major work included
replacement of the apron feeder, filter press upgrades and modifications to the Grizzly feeder
At the Tiriganiaq open pit, overburden stripping has been accelerated with a contractor to provide additional mining flexibility for both
tonnes and grade in 2021
See AEM February 13, 2020 press release and appendix for detailed breakdown of mineral reserves and mineral resources.
CIBC 24th Annual Western Institutional Investor Conference 25View entire presentation