14 February 2019
Agnico Eagle Mines Limited today reported quarterly net loss of $393.7 million, or a loss of $1.68 per share, for the fourth quarter of 2018. This result includes impairment losses of $389.7 million ($1.66 per share), non-cash foreign currency translation losses on deferred tax liabilities and non-recurring tax adjustments of $14.4 million ($0.06 per share), losses due to change of reclamation estimates relating to closed sites (net of tax) of $12.4 million ($0.05 per share), derivative losses on financial instruments, mark-to-market and other adjustments of $8.3 million ($0.04 per share) and non-cash foreign currency translation losses of $2.7 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $33.8 million or $0.14 per share for the fourth quarter of 2018. For the fourth quarter of 2017, the Company reported net income of $37.5 million or $0.16 per share.
The impairment losses of $389.7 million ($1.66 per share) include an impairment of goodwill relating to the Canadian Malartic mine of $250.0 million ($1.07 per share), an asset impairment relating to the El Barqueno project of $100.7 million ($0.43 per share) and an impairment of goodwill relating to the La India mine of $39.0 million ($0.16 per share).
Included in the fourth quarter of 2018 net income, and not adjusted above, is non-cash stock option expense of $3.9 million ($0.02 per share).
For the full year 2018, the Company reported net loss of $326.7 million, or a loss of $1.40 per share. This compares with the full year 2017, when net income was $240.8 million, or $1.05 per share.