How much do depreciation assumptions change Agnico Eagle Mines Limited's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $5.04B against $296.1M of depreciation and amortization implies an average life of about 17.0 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2009 | $3.92B | $3.58B | $72.5M | 54.1 | Not disclosed in structured data |
| 2010 | $5.10B | $4.56B | $192.5M | 26.5 | Not disclosed in structured data |
| 2011 | $4.64B | $3.90B | $261.8M | 17.7 | Not disclosed in structured data |
| 2012 | $5.01B | $4.07B | $271.9M | 18.4 | Not disclosed in structured data |
| 2013 | $5.04B | $4.05B | $296.1M | 17.0 | Not disclosed in structured data |
40-F filed 2014-03-26 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 18-year average life gives an annual charge of $280.1M instead of $296.1M. After tax at 21%, net income would be higher by $12.7M. Cash spending ([object Object]) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.