18. REVENUES FROM MINING OPERATIONS AND TRADE RECEIVABLES

Agnico Eagle is a gold mining company with mining operations in Canada, Mexico and Finland. The Company earns a significant proportion of its revenues from the production and sale of gold in both dore bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of by-product metals. The revenue from by-product metals is primarily generated by production at the LaRonde mine in Canada (silver, zinc and copper) and the Pinos Altos mine in Mexico (silver).

The cash flow and profitability of the Company’s operations are significantly affected by the market price of gold and, to a lesser extent, silver, zinc and copper. The prices of these metals can fluctuate significantly and are affected by numerous factors beyond the Company’s control.

During the year ended December 31, 2020, four customers each contributed more than 10.0% of total revenues from mining operations for a combined total of approximately 84.3% of revenues from mining operations in the Northern and Southern business units. However, because gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product.

The following table sets out sales to individual customers that exceeded 10.0% of revenues from mining operations:


	Year Ended December 31,
	2020			2019
Customer 1	$	799,405		$	600,171
Customer 2		798,698			504,763
Customer 3		628,940			344,534
Customer 4		419,499			335,755
Customer 5		—			329,804
Total sales to customers exceeding 10.0% of revenues from mining operations	$	2,646,542		$	2,115,027
Percentage of total revenues from mining operations		84.3	%		84.8	%

Trade receivables are recognized once the transfer of control for the metals sold has occurred and reflect the amounts owing to the Company in respect of its sales of concentrates to third parties prior to the satisfaction in full of the payment obligations of the third parties. As at December 31, 2020, the Company had $11.9 million (2019 - $8.3 million) in receivables relating to provisionally priced concentrate sales.

The Company has recognized the following amounts relating to revenue in the consolidated statements of income:


	Year Ended December 31,
	2020		2019
Revenue from contracts with customers	$	3,137,795	$	2,496,878
Provisional pricing adjustments on concentrate sales		318		(1,986)
Total revenues from mining operations	$	3,138,113	$	2,494,892

The following table sets out the disaggregation of revenue by metal:


	Year Ended December 31,
	2020		2019
Revenues from contracts with customers:
Gold	$	3,047,019	$	2,392,739
Silver		73,904		73,297
Zinc		2,312		18,128
Copper		14,560		12,714
Total revenues from contracts with customers	$	3,137,795	$	2,496,878

In 2020, precious metals (gold and silver) accounted for 99.5% of Agnico Eagle’s revenues from mining operations (2019 - 98.9%). The remaining revenues from mining operations consisted of net by-product metal revenues from non-precious metals.