AGNICO EAGLE REPORTS SECOND QUARTER 2023 RESULTS - RECORD QUARTERLY GOLD PRODUCTION AND SOLID COST PERFORMANCE DRIVE STRONG QUARTERLY EARNINGS AND OPERATING CASH FLOW; WELL POSITIONED TO ACHIEVE ANNUAL PRODUCTION AND COST GUIDANCE
- Record quarterly gold production and better than expected costs driving solid financial results
- Strong operating and safety performance at all mine sites
- Important milestones achieved across the portfolio
- Solid cash flow generation strengthens the Company's balance sheet and liquidity position
- Progress on key value drivers and pipeline projects
- Positive exploration results at Detour, Meliadine, Kittila, and Hope Bay
- Challenges related to wildfires and caribou migration impacting operations
Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in
"Agnico Eagle delivered another strong operational quarter, with record quarterly gold production and better than expected costs driving solid financial results. With this excellent start to the year, we are tracking very well to meet our annual production and cost guidance. I would also like to commend our team for one of the best quarterly safety performances in the Company's history," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "In June we released an update on the Odyssey project at Canadian Malartic, which highlighted an improved production profile, a mine life extension to 2042 and a significant geological upside. We continue to advance the various studies of our key pipeline projects in the Abitibi Gold Belt, with the objective of leveraging our existing infrastructure and generating value for our shareholders. We expect to report the results of these ongoing studies through the first half of 2024. Finally, in the second quarter, we had strong exploration results from Detour, Meliadine, Kittila and at Hope Bay, with the intersection of higher grade mineralization at the
Second quarter 2023 highlights
- Record quarterly gold production and solid cost performance – Record quarterly gold production reflects
100% ownership of Canadian Malartic for the full quarter, combined with a strong operational performance at all producing sites. Payable gold production1 in the second quarter of 2023 was 873,204 ounces at production costs per ounce of$851 $840 $1,150 - Operational performance drives strong quarterly financial results – The Company reported quarterly net income of
$0.66 $0.65 $1.46 - Strong operating and safety performance at all mine sites – Gold production and costs in the second quarter of 2023 were better than anticipated, reflecting strong operating performance across the Company's mines, despite the challenges related to wildfires in northern
Ontario andQuebec and the caribou migration inNunavut . Lower than expected costs reflect a strong operating performance, favourable foreign exchange rates and the easing of certain inflationary pressures - Important milestones achieved across the portfolio – At the Canadian Malartic complex, the team celebrated production of its seventh million ounce in June. In addition, Detour Lake, Goldex and Macassa each achieved record quarterly mill throughput rates, while Meliadine recorded its best ever monthly mill throughput in May 2023
- Gold production, cost and capital expenditure guidance reiterated for 2023 – Expected payable gold production in 2023 remains unchanged at approximately 3.24 to 3.44 million ounces with total cash costs per ounce expected to be between
$840 $890 $1,140 $1,190 $1.42 billion Finland (the "SAC") to either maintain the 1.6 Mtpa permit or revert to the 2.0 Mtpa permit is expected in the third quarter of 2023 - Solid cash flow generation strengthens the Company's balance sheet and liquidity position – During the second quarter of 2023, the Company repaid
$900 million $300 million $600 million $100 million 4.54% Series A senior notes at maturity. As at June 30, 2023, the Company's long term debt was$1,942.0 million $1,509.5 million - Update on key value drivers and pipeline projects
- Odyssey mine at the Canadian Malartic complex – In June 2023, the Company released the results of a new internal study reflecting significant project advancements, an improved valuation and opportunities to further enhance value (see the news release dated June 20, 2023). Shaft sinking activities ramped up through the quarter, with approximately 60 metres sunk as at June 30, 2023. Production via the ramp at the Odyssey South deposit increased through the quarter and remains on schedule to reach a planned rate of 3,500 tonnes per day ("tpd") in 2024. Drilling activities focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west
- Detour Lake – In the second quarter of 2023, the mill set a record for quarterly throughput, with an improved mill availability of
92.8% . The continued focus on mill process optimization and mill availability is tracking well to reach and potentially exceed, throughput of 28.0 Mtpa. The Company is advancing the underground mining scenario study based on a revised mineral resource model and expects to report the results of this study in the first half of 2024 - Optimization of assets and infrastructure in the Abitibi Gold Belt – The Company continued to advance several internal evaluations to assess potential production opportunities at the Macassa Near Surface and the Amalgamated Kirkland ("AK") deposits, and at the Upper Beaver and Wasamac projects. These evaluations include an assessment of ore transportation via rail or truck to the Company's existing processing facilities in the region, with a goal of increasing future gold production at lower capital costs and with a reduced environmental footprint. The results of these evaluations are expected to be reported in the first half of 2024
- Positive exploration results at Detour, Meliadine, Kittila and Hope Bay
- Based on exploration success in the first half of 2023, a supplemental exploration budget of
$32 million - Detour – Drilling continues to investigate the deposit below the West Pit mineral reserve and the western plunge extension of the mineralization to confirm the mineralized zones potentially amenable to underground mining. Drill results below the West pit reserve continue to demonstrate potential for a higher grade envelope with a recent intercept yielding 12.9 grams per tonne ("g/t") gold over 12.9 metres at 400 metres depth, while two kilometres west of the open pit mineral reserves mineralization remains open with a recent intercept returning 2.8 g/t gold over 14.4 metres at 1,061 metres depth
- Meliadine – Drilling continues to investigate the vertical extensions of the mineralized zones in the central part of the Tiriganiaq, Wesmeg and Wesmeg North deposits. At Wesmeg North, a recent intercept yielded 6.3 g/t gold over 7.4 metres at 558 metres depth. Approximately 1.5 kilometres southeast of Tiriganiaq at the F-Zone deposit, a recent intercept yielded 6.4 g/t gold over 16.0 metres at 167 metres depth in the upper portion of the deposit
- Kittila – Drilling has extended the Rimpi Main Zone to the north, outside of the current mineral resources, with a recent intercept yielding 7.2 g/t gold over 4.5 metres at 1,102 metres depth. In the Roura area close to the shaft bottom, a recent intercept in the Main Zone yielded 7.7 g/t gold over 7.3 metres at 1,152 metres depth. At shallow depth in the Rimpi area, the Parallel / Sisar Zone was identified in an area that has received limited drilling to date, yielding 3.1 g/t gold over 4.5 metres at 142 metres depth and opening a new near-surface target area for future exploration
- Hope Bay project – A total of nine exploration drill rigs were operating at the Doris and
Madrid deposits and regionally during the second quarter. At Doris, drilling in the BCO Zone continued to return good grades and thicknesses to further confirm the potential to expand the zone along strike. AtMadrid , drilling focused on a two-kilometre long, previously untested gap between the Suluk and Patch 7 zones, with new highlight intercepts of 10.0 g/t gold over 14.0 metres at 677 metres depth and 13.7 g/t gold over 4.6 metres at 697 metres depth. This drilling confirms the potential ofMadrid /Suluk/Patch 7 as it extends the high-grade Patch 7 Zone by 500 metres vertically and by 900 metres laterally at depth - A quarterly dividend of
$0.40
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1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. |
2 Total cash costs per ounce is a non-GAAP ratio that is not a standardized financial measure under IFRS and, unless otherwise specified, is reported on a by-product basis in this news release. For the detailed calculation of production costs per ounce, the reconciliation of total cash costs to production costs and information about total cash costs per once on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
3 AISC per ounce is a non-GAAP ratio that is not a standardized financial measure under the IFRS and, unless otherwise specified, is reported on a by-product basis in this news release. For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
4 Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under IFRS. For a reconciliation to net income and net income per share see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
5 Net debt is a non-GAAP measure that is not a standardized measure under IFRS. For a reconciliation to long-term debt, see "Reconciliation of non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
Second Quarter 2023 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Thursday, July 27, 2023 at 11:00 AM (E.D.T.) to discuss the Company's second quarter 2023 financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-416-764-8659 or toll-free 1-888-664-6392. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Via URL Entry:
To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/3CqLElb to receive an instant automated call back.
Replay Archive:
Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access code 008251#. The conference call replay will expire on August 27, 2023.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Second Quarter 2023 Financial and Production Results
In the second quarter of 2023, net income was
Excluding the above items results in adjusted net income of
Included in the second quarter of 2023 net income, and not adjusted above, is a non-cash stock option expense of
In the first six months of 2023, the Company reported net income of
The increase in net income in the second quarter of 2023 compared to the prior-year period is due to a gain on derivative financial instruments, higher mine operating margins6 from higher sales volumes resulting from the acquisition of the remaining
The increase in net income in the first six months of 2023 is primarily due to a remeasurement gain resulting from the application of purchase accounting relating to a business combination attained in stages, which requires the remeasurement of the Company's previously held
In the second quarter of 2023, cash provided by operating activities was
In the first six months of 2023, cash provided by operating activities was
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6 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a reconciliation to net income see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
In the second quarter of 2023, the Company's payable gold production was a record 873,204 ounces. This compares to quarterly payable gold production of 858,170 ounces in the prior-year period as the additional production from the acquisition of the remaining
In the first six months of 2023, the Company's payable gold production was 1,686,017 ounces compared to the first six months of 2022 when payable gold production was 1,518,774 ounces. The increase in payable gold production is a result of additional days of production in 2023 at the Detour Lake, Macassa and
In the second quarter of 2023, production costs per ounce were
In the first six months of 2023, production costs per ounce were
In the second quarter of 2023, AISC per ounce were
In the first six months of 2023, AISC per ounce were
Solid Cash Flow Generation Continues to Support Investment Grade Balance Sheet; Financial Flexibility Strengthened with Increased Liquidity
With the strong cash-flow generation during the second quarter, the Company used cash on hand to repay
As of June 30, 2023, the outstanding balance on the Company's unsecured revolving bank credit facility was
Cash and cash equivalents decreased to
On April 7, 2023, Moody's upgraded its credit rating outlook for the Company to "positive" from "stable", while affirming the credit rating at Baa2. On June 20, 2023, Fitch Ratings affirmed its credit rating for Agnico Eagle at BBB+ with a Stable Outlook. These investment grade credit ratings reflect the Company's strong business and credit profile, while maintaining low leverage and conservative financial policies and recognizing the benefits of the Company's size and scale and operations in favourable mining jurisdictions.
In May 2023, the Company received approval from the TSX to renew its normal course issuer bid ("NCIB") pursuant to which the Company is permitted to purchase up to the lesser of (i)
Agnico Eagle believes that the NCIB provides a flexible tool as part the Company's overall capital allocation program and objectives and generates value for shareholders. In the second quarter of 2023, no purchases were made under the NCIB.
Approximately
With the completion of the initial diesel purchase for the Company's
The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2023 and future guidance.
Capital Expenditures
In the second quarter of 2023, capital expenditures were
The following table sets out capital expenditures (including sustaining capital expenditures7 and development capital expenditures7) and capitalized exploration in the second quarter of 2023.
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7 Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial measures under IFRS. See "Note Regarding Certain Measures of Performance" and "Reconciliation of Non-GAAP Performance Measures – Reconciliation of Sustaining Capital Expenditures to Consolidated Statements of Cash Flow". |
Capital Expenditures | |||||
(In thousands of | |||||
Capital Expenditures* | Capitalized Exploration | ||||
Three Months | Six Months | Three Months | Six Months | ||
June 30, 2023 | June 30, 2023 | June 30, 2023 | June 30, 2023 | ||
Sustaining Capital Expenditures | |||||
LaRonde complex | 19,788 | 35,527 | 641 | 896 | |
Canadian | 34,086 | 50,670 | — | — | |
Goldex mine | 3,428 | 8,166 | 210 | 294 | |
Detour Lake mine | 60,678 | 113,962 | — | — | |
Macassa mine | 8,646 | 15,036 | 250 | 508 | |
Meliadine mine | 13,839 | 26,916 | 1,865 | 3,874 | |
Meadowbank complex | 35,624 | 71,255 | — | — | |
Hope Bay project | 145 | 147 | — | — | |
7,252 | 14,921 | 46 | 346 | ||
Kittila mine | 12,310 | 21,220 | (352) | 1,073 | |
8,062 | 16,059 | 345 | 598 | ||
La | 45 | 71 | 6 | 6 | |
Total Sustaining Capital | $ 203,903 | $ 373,950 | $ 3,011 | $ 7,595 | |
Development Capital Expenditures | |||||
LaRonde complex | 17,813 | 33,107 | — | — | |
Canadian | 46,548 | 76,366 | 2,370 | 3,573 | |
Goldex mine | 8,064 | 16,075 | 774 | 2,052 | |
Akasaba West project | 8,706 | — | |||
Detour Lake mine | 24,775 | 47,383 | 8,815 | 17,282 | |
Macassa mine | 16,108 | 37,158 | 7,552 | 14,915 | |
Meliadine mine | 33,622 | 49,695 | 3,652 | 5,459 | |
Amaruq underground project | (21) | 310 | — | — | |
Hope Bay project | 2,724 | 3,199 | — | — | |
8,573 | 11,714 | 4,727 | 10,690 | ||
Kittila mine | 8,353 | 19,049 | 2,193 | 2,193 | |
1,175 | 3,374 | 518 | 1,112 | ||
Other | 2,092 | 2,455 | — | — | |
Total Development Capital | $ 178,532 | $ 318,960 | $ 30,601 | $ 57,276 | |
Total Capital Expenditures | $ 382,435 | $ 692,910 | $ 33,612 | $ 64,871 | |
* Excludes capitalized exploration |
2023 Guidance Unchanged
The Company is on track to meet its 2023 gold production guidance of between 3.24 and 3.44 million ounces, which is based on the assumption that the Kittila mill operates at an annual rate of 1.6 Mtpa. Through the first half of 2023, Kittila has maintained operational flexibility to process 2.0 Mtpa in 2023. The SAC is expected to provide its final decision on Kittila's operating permit in the third quarter of 2023. If the SAC reverses the lower court ruling and reinstates the operating permit at 2.0 Mtpa, then the Company expects Kittila to produce up to 30,000 ounces of additional gold in the second half of 2023 as compared to the current guidance, however, the Company can provide no assurance that the SAC will reverse the lower court decision. If the SAC upholds the lower court decision and maintains the current operating permit of 1.6 Mtpa, the Company would be required to scale back operations during the fourth quarter of 2023 to remain within the permitted annual rate.
The Company is also on track to meet its 2023 guidance for total cash costs per ounce and AISC per ounce of between
The closing of the Yamana Transaction on March 31, 2023 resulted in a remeasurement of the Company's previously-held
Update on Key Value Drivers and Pipeline Projects
Highlights on the key value drivers (Odyssey mine, Detour Lake mine and optimization of assets and infrastructure in the Abitibi region of
Odyssey Project
The Company released the results of a new internal study on the Odyssey project (the "2023 Odyssey Study") in June 2023, reflecting significant project advancements and the new economic environment (refer to the news release dated June 20, 2023). The forecast parameters for the 2023 Odyssey Study include inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized. Key highlights of the 2023 Odyssey Study and work completed in the second quarter of 2023 include:
- Approximately
60% of the surface construction has been completed with approximately$429 million - As at June 30, 2023, approximately 60 metres of the shaft had been sunk, with approximately 50 metres of that concrete-lined. Shaft sinking activities increased through the quarter, with the ongoing commissioning of shaft sinking equipment
- Production via the ramp from Odyssey South totaled 6,750 ounces of gold for the second quarter of 2023. The commissioning of the paste plant is expected to be completed in the third quarter 2023, which will facilitate the production ramp-up to the design rate of 3,500 tpd in 2024
- The extraction of the first stope at Odyssey South in the second quarter of 2023 has shown positive reconciliation with respect to tonnes and gold grade, reflecting the potential contribution from internal zones. The Company continues to drill to better identify the internal zones that have the potential to improve the production profile at Odyssey South. The production levels below level 36 have been redesigned to capture the potential mining recovery of these zones
- The next phase of surface construction and underground mine development is on schedule, with a focus on initiating production from East Gouldie via ramp and shaft in 2027. The main hoist building is expected to be completed in 2025, while the ore silo, the second phase of the paste plant, the shaft sinking and the first loading pocket at mid shaft are expected to be completed in 2027
- Confidence in the mine plan improved, with approximately
53% of mineable gold ounces now categorized as indicated mineral resources compared to approximately5% in the internal study completed in 2020 (the "2020 Odyssey Study") - The larger mineable mineral resource extended the mine life to 2042 and increased the forecast gold production for the Odyssey mine by
23% , or 1.7 million ounces of gold, compared to the 2020 Odyssey Study - Capital expenditures and operating cost estimates were updated to reflect the current inflationary environment
- The larger mineable mineral resource, construction progress and current higher gold price environment more than offset anticipated cost inflation and contributed to an increase in project value when compared to the 2020 Odyssey Study. Using a gold price assumption of
$1,650 24% and an after-tax NPV (at a5% discount rate) of$1.60 billion $1,950 33% and$2.46 billion
The Company believes the potential for further conversion of inferred mineral resources at Odyssey is significant and is expected to add mine life and continue to increase value. Up to 16 drill rigs were active on the Canadian Malartic property during the second quarter, including: five underground drills in the Odyssey South and internal zones; four surface drills focused on expanding and infilling the East Gouldie mineralization; four drill rigs investigating new regional targets around the Odyssey mine and Canadian Malartic mines; and three drill rigs investigating near-surface targets at the Camflo property, located 4.0 kilometres northeast of the Odyssey mine infrastructure, where a first phase of 60 drill holes was completed early in the second quarter.
During the second quarter of 2023, 32,285 metres of capitalized and expensed drilling were completed. Drilling targeted several areas that are part of the Odyssey mine, including the infill of the East Gouldie deposit from surface, and of the Odyssey South and Odyssey internal zones from the exploration ramp.
Exploration drilling also continued to investigate the broader East Gouldie mineralized zone and extended the zone laterally to the east and to the west. Regional exploration drilling totaled 3,000 metres during the second quarter, with work resuming on the Rand Malartic property to test the extension of the Odyssey mine's different zones and the launch at quarter-end of the Phase 2 drilling program around the Camflo mine to further investigate its near-surface potential.
Detour Lake Mine
In the second quarter of 2023, the Detour Lake mine established a new quarterly record for mill throughput (74,725 tpd), reflecting an improved mill availability of
The Company is also assessing several projects to potentially exceed the mill throughput of 28.0 Mtpa, including ore sorting and the implementation of advanced process control utilizing artificial intelligence or expert systems. Building on positive results in 2022, the Company initiated an ore sorting pilot test with the objective to process approximately 1.5 million tonnes of low-grade material to establish the key design criteria of a full-size sorting plant. The pilot project will also help determine the economic viability of a full-size sorting operation at Detour Lake.
Ten drill rigs were active in exploration drilling at Detour Lake during the second quarter of 2023, completing 63,326 metres of drilling for a total of 128,539 metres completed during the first six months of 2023.
Drilling during the second quarter targeted specific gold mineralized horizons within and below the West Pit mineral reserve to examine gold continuity between existing drill holes, and targeted the western plunge extension of the open-pit mineralization to firm up the mineralized zones potentially amenable to underground mining, with the following highlights:
- Close to the open pit mineral reserves, hole DLM23-632 returned 2.5 g/t gold over 11.4 metres at 309 metres depth, 12.9 g/t gold over 12.9 metres at 400 metres depth and 1.0 g/t gold over 57.4 metres at 436 metres depth
- In the western extension of the open pit mineral resources, hole DLM23-654A returned 2.7 g/t gold over 14.9 metres at 424 metres depth, 7.6 g/t gold over 2.7 metres at 521 metres depth and 2.5 g/t gold over 16.1 metres at 573 metres depth
- Almost two kilometres west of the open pit mineral reserves, hole DLM23-665 returned 2.8 g/t gold over 14.4 metres at 1,061 metres depth, further demonstrating the continuity of gold mineralization along the main Detour horizon past the current area identified for underground mining potential. The "out-pit" mineralization extends more than 2.4 kilometres west of the current mineral resource pit outline
Additional selected results from the second quarter drilling at Detour Lake are provided in the plan map, composite longitudinal section and table below.
With the ongoing exploration drilling success at Detour Lake, the Company has approved a supplemental exploration budget of
With continued positive drilling results in the higher grade zones investigated for underground mining potential, the Company has decided to integrate additional drill data from the first half of 2023 into a maiden underground mineral resource model that will be used to evaluate potential underground mining scenarios. Results of an internal evaluation of the underground mining potential are now expected to be reported in the first half of 2024.
[Detour Lake – Plan Map and Composite Longitudinal Section]
Recent selected exploration drill results from West Pit and West Pit Extension zones at Detour Lake
Drill hole | Zone | From | To | Depth of | Estimated | Gold grade (g/t) (uncapped) |
DLM23-598W | West Pit | 1,169.0 | 1,181.0 | 964 | 11.3 | 3.3 |
DLM23-604 | West Pit | 268.0 | 287.0 | 250 | 15.1 | 3.8 |
and | West Pit | 304.8 | 339.0 | 289 | 27.5 | 1.9 |
and | West Pit | 538.0 | 564.0 | 487 | 21.8 | 2.0 |
and | West Pit | 604.0 | 607.0 | 533 | 2.5 | 9.9 |
DLM23-612 | West Pit | 616.0 | 676.0 | 538 | 53.4 | 1.4 |
including | 625.0 | 644.0 | 529 | 16.9 | 2.8 | |
and | West Pit | 696.1 | 744.7 | 596 | 43.5 | 1.5 |
DLM23-616 | West Pit | 599.0 | 625.2 | 439 | 25.3 | 2.9 |
and | West Pit | 656.0 | 677.0 | 474 | 20.3 | 3.2 |
DLM23-620 | West Pit Extension | 495.0 | 498.0 | 445 | 2.5 | 81.4 |
and | West Pit Extension | 737.0 | 743.8 | 647 | 6.0 | 3.2 |
DLM23-628 | West Pit | 26.2 | 43.0 | 29 | 14.2 | 6.8 |
including | 26.2 | 29.8 | 24 | 3.0 | 30.6 | |
DLM23-629 | West Pit | 306.0 | 374.0 | 279 | 60.7 | 7.2 |
including | 316.0 | 319.0 | 262 | 2.7 | 137.0 | |
and | West Pit | 467.0 | 504.0 | 392 | 33.7 | 2.5 |
including | 468.0 | 471.0 | 379 | 2.7 | 21.6 | |
and | West Pit | 620.5 | 635.9 | 498 | 14.2 | 3.4 |
DLM23-632 | West Pit | 376.7 | 389.3 | 309 | 11.4 | 2.5 |
and | West Pit | 496.0 | 510.0 | 400 | 12.9 | 12.9 |
and | West Pit | 521.0 | 583.0 | 436 | 57.4 | 1.0 |
DLM23-633 | West Pit | 247.0 | 272.0 | 203 | 22.7 | 4.6 |
and | West Pit | 423.0 | 509.0 | 355 | 80.2 | 1.0 |
DLM23-644 | West Pit | 372.9 | 397.2 | 326 | 21.5 | 2.2 |
and | West Pit | 416.0 | 434.0 | 357 | 16.1 | 2.7 |
and | West Pit | 513.0 | 516.0 | 426 | 2.7 | 10.1 |
and | West Pit | 545.0 | 576.0 | 460 | 28.5 | 2.5 |
and | West Pit | 702.0 | 767.0 | 588 | 60.2 | 1.2 |
DLM23-646 | West Pit | 632.0 | 646.3 | 565 | 11.8 | 2.4 |
DLM23-648 | West Pit | 309.0 | 317.0 | 259 | 7.0 | 10.0 |
and | West Pit | 487.0 | 512.2 | 406 | 22.8 | 2.3 |
and | West Pit | 525.0 | 529.0 | 427 | 3.6 | 10.6 |
and | West Pit | 637.0 | 653.7 | 516 | 15.3 | 4.1 |
including | 641.7 | 647.7 | 515 | 5.5 | 9.8 | |
and | West Pit | 784.0 | 826.0 | 633 | 38.9 | 0.9 |
DLM23-652A | West Pit | 227.0 | 251.0 | 205 | 20.4 | 2.4 |
DLM23-654A | West Pit Extension | 479.0 | 496.0 | 424 | 14.9 | 2.7 |
and | West Pit Extension | 608.0 | 611.0 | 521 | 2.7 | 7.6 |
and | West Pit Extension | 668.3 | 686.0 | 573 | 16.1 | 2.5 |
DLM23-662A | West Pit | 959.0 | 972.0 | 868 | 11.1 | 3.1 |
DLM23-665 | West Pit Extension | 1,225.6 | 1,242.0 | 1061 | 14.4 | 2.8 |
DLM23-666 | West Pit Extension | 339.0 | 357.1 | 291 | 15.8 | 3.0 |
and | West Pit Extension | 385.0 | 411.0 | 331 | 22.8 | 3.7 |
and | West Pit Extension | 428.0 | 436.0 | 359 | 7.1 | 10.6 |
DLM23-667CW | West Pit Extension | 783.0 | 803.0 | 704 | 17.2 | 1.4 |
including | West Pit Extension | 797.0 | 801.0 | 709 | 3.4 | 4.0 |
and | West Pit Extension | 1,009.0 | 1,013.2 | 879 | 3.8 | 5.1 |
and | West Pit Extension | 1,061.7 | 1,067.7 | 920 | 5.4 | 7.1 |
DLM23-670CW | West Pit | 713.8 | 753.0 | 616 | 35.5 | 0.9 |
and | West Pit | 858.6 | 892.0 | 722 | 30.9 | 1.2 |
including | 868.0 | 871.0 | 718 | 2.8 | 6.6 | |
and | West Pit | 944.0 | 960.5 | 778 | 15.4 | 4.3 |
DLM23-678 | West Pit Extension | 226.0 | 229.0 | 198 | 2.5 | 15.0 |
and | West Pit Extension | 313.1 | 317.0 | 271 | 3.3 | 6.3 |
and | West Pit Extension | 559.0 | 586.1 | 481 | 23.9 | 2.0 |
and | West Pit Extension | 624.0 | 642.0 | 529 | 16.0 | 2.4 |
DLM23-689 | West Pit Extension | 1,090.7 | 1,093.7 | 981 | 2.5 | 17.3 |
DLM23-690 | West Pit Extension | 882.8 | 889.0 | 754 | 5.8 | 2.9 |
and | West Pit Extension | 934.0 | 965.0 | 799 | 29.2 | 2.4 |
DLM23-693 | West Pit Extension | 834.0 | 837.0 | 752 | 2.4 | 26.7 |
Optimization of Assets and Infrastructure in the Abitibi Region
During the second quarter of 2023, the Company advanced internal studies to assess potential production opportunities at the Macassa Near Surface and AK deposits, and the Upper Beaver and Wasamac projects. Among the alternatives considered, the Company is evaluating the potential to transport ore via rail or truck to the LaRonde and Canadian Malartic processing facilities, which are expected to have excess mill capacity in the future. Leveraging existing regional infrastructure has the potential to result in regional production growth at lower capital costs and with a reduced environmental footprint, which could also be beneficial to future permitting activities.
The Macassa Near Surface and AK deposits are accessible from an existing surface ramp at Macassa. Production from the Near Surface deposits commenced in the second quarter of 2023, with processing of the ore at the Macassa mill. Production from the AK deposit could potentially begin in 2024. With the commissioning of the Shaft #4 and increased productivity from the Macassa deep mine, the Macassa mill is expected to reach its full capacity of 1,650 tpd by mid-2024. The Company is evaluating the opportunity to process the near surface and AK ores at the LaRonde complex, which is approximately 130 kilometres away, and avoid capital costs associated with a mill expansion at Macassa. Average annual production from these two deposits could potentially be between 20,000 and 40,000 ounces of gold, commencing in 2024. The Company expects to report results on this evaluation in early 2024.
Drilling on the AK Zone close to surface continues to convert and expand the current mineral resources, and the results show good continuity of mineralization in this zone, which is characterized by disseminated pyrite in a sheared structure. Recent results include 11.1 g/t gold over 5.1 metres at 250 metres depth in hole KLAK-206 and 10.4 g/t gold over 2.5 metres at 240 metres depth in hole KLAK-186.
The Company is updating the studies that were previously completed at the Upper Beaver and Wasamac projects to reflect the current gold price and cost environment. Alternative processing scenarios at either the LaRonde or Canadian Malartic processing facilities are also being evaluated. Both mill complexes are close to existing road and rail infrastructure and the Company is evaluating operational feasibility, operating costs and additional infrastructure that would be required to load, transport and unload ore for processing and the tailings required for paste backfill. Both Upper Beaver and Wasamac have the potential to be low-cost mines with annual production of 150,000 to 200,000 ounces of gold with moderate capital outlays and initial production potentially commencing in 2030 and in 2029, respectively.
The Company expects to consolidate the results of these various internal evaluations early in 2024 and report results through the first half of 2024.
Hope Bay – Extensive Exploration Drilling at Doris and
Exploration drilling continued at Hope Bay during the second quarter with six drill rigs at surface testing the Doris and
The objective is to grow the mineral resources at both deposits to support future project studies and potentially resume mining at Hope Bay.
At Doris, drilling into the extensions of the main fold hinge of the BCO Zone returned 15.0 g/t gold over 6.4 metres at 422 metres depth in hole HBBCO23-153, 5.5 g/t gold over 5.1 metres at 585 metres depth in hole HBBCO23-154 from underground drilling and 17.1 g/t gold over 4.8 metres at 607 metres depth in hole HBD23-071, demonstrating the potential to continue growing the mineral resource laterally beyond the areas of historical mining.
Wide step-out drilling at
This drilling has extended the high-grade Patch 7 Zone by 500 metres vertically and by 900 metres laterally at depth, and follow-up drilling will continue testing the gap between Suluk and Patch 7 at 200-metre step-outs to evaluate the potential of this zone.
Selected recent drill intercepts from the Doris and
[Doris Deposit at Hope Bay – Composite Longitudinal Section]
[Madrid Deposit at Hope Bay – Composite Longitudinal Section]
Recent selected drill results from Doris and
Drill hole | Deposit / zone | From (metres) | To (metres) | Depth of midpoint below surface (metres) | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped)* |
HBBCO23-153 | Doris / BCO WL | 205.0 | 213.3 | 422 | 6.4 | 24.0 | 15.0 |
including | 210.0 | 213.3 | 422 | 2.6 | 55.1 | 32.4 | |
HBBCO23-154 | Doris / BCO WL | 221.0 | 230.1 | 585 | 5.1 | 5.5 | 5.5 |
including | 227.3 | 230.1 | 587 | 1.6 | 12.7 | 12.7 | |
HBD23-071 | Doris / BCO WL | 731.5 | 737.3 | 607 | 4.8 | 17.1 | 17.1 |
HBM23-086 |
| 832.5 | 840.5 | 697 | 4.6 | 15.1 | 13.7 |
HBM23-091 | 394.0 | 410.0 | 352 | 13.9 | 5.3 | 5.3 | |
including | 395.0 | 406.5 | 351 | 10.0 | 6.6 | 6.6 | |
HBM23-095 |
| 723.5 | 757.0 | 580 | 21.4 | 3.1 | 3.1 |
including | 730.0 | 744.0 | 577 | 9.0 | 5.3 | 5.3 | |
HBM23-105 |
| 815.0 | 839.5 | 677 | 14.0 | 14.5 | 10.0 |
including | 830.5 | 838.0 | 682 | 4.3 | 42.3 | 27.6 |
*Results from the Doris and |
Based on the positive results at Doris and
A regional exploration program is also underway, with field work commencing in May. One drill rig has been mobilized to test anomalies identified during the 2022 and 2023 field seasons with a focus on targets near the Koignuk fault, located four kilometres northwest of the
In the meantime, technical studies continue to progress while larger production scenarios for Hope Bay are being evaluated.
San Nicolás Project
On April 6, 2023, the Company and Teck Resources Limited ("Teck") entered into a joint venture shareholders agreement in respect of the San Nicolás copper-zinc development project located in
Impact on Operations from Ongoing Wildfires in
In June 2023, the Company's operations in
In
Environment, Social and Governance Performance Summary
Health and Safety
- The Company recorded one of its best ever quarterly safety performances in the second quarter of 2023, and notably the Company recorded its best safety performance in the first six months of any year in its history
- The LaRonde complex recorded its best quarterly safety performance in the last 10 years
- The Meliadine mine recorded its best ever quarterly performance and received the John T. Ryan award from the Canadian Institute of Mining, Metallurgy and Petroleum for achieving the lowest reportable injury frequency in the Prairie Provinces and Territories in 2022
- The Meadowbank complex rescue team won three trophies at the Mine Rescue Competition in Yellowknife
- The Macassa mine rescue team won first place in the Kirkland Lake District Competition and placed third overall in the Ontario Provincial Mine Rescue Competition
Environment and Permitting
- The regulatory process to amend the Meliadine mine's permit to include future underground mining and associated saline water management infrastructure at the Pump, F-Zone and Discovery deposits was initiated in 2022 with the Nunavut Impact Review Board ("NIRB") and the Nunavut Water Board. Construction and operation of a wind-farm is also included in the application. The NIRB public hearing process is scheduled for September 2023
Community Relations, Governance and People
- For the 5th year in a row, and 9th time since 2012, the Company was included in Corporate Knights' list of
Canada 's Best 50 Corporate Citizens, recognizing our leadership in sustainability and responsible mining practices - The Company received special recognition from Senator Patterson of the Canadian Senate for the Company's contribution to socioeconomic development in
Nunavut - Agnico Eagle Mexico was recognized by Great Place To Work® México as one of the Best Places to Work in
Mexico for the 12th consecutive year
Dividend Record and Payment Dates for the Third Quarter of 2023
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of
Expected Dividend Record and Payment Dates for the 2023 Fiscal Year
Record Date | Payment Date |
March 1, 2023* | March 15, 2023* |
June 1, 2023* | June 15, 2023* |
September 1, 2023** | September 15, 2023** |
December 1, 2023 | December 15, 2023 |
*Paid |
**Declared |
Dividend Reinvestment Plan
See the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency exchange program, please contact Computershare Trust Company of
ABITIBI REGION,
LaRonde Complex – Solid Production, Mill Throughput, Hoisting and Development Performance in the Second Quarter of 2023
LaRonde Complex – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 660 | 714 | 1,368 | 1,447 | ||
Tonnes of ore milled per day | 7,253 | 7,824 | 7,558 | 7,994 | ||
Gold grade (g/t) | 3.82 | 4.08 | 3.77 | 4.41 | ||
Gold production (ounces) | 76,780 | 88,510 | 156,387 | 193,547 | ||
Production costs per tonne (C$) | $ 174 | $ 92 | $ 145 | $ 100 | ||
Minesite costs per tonne (C$)8 | $ 151 | $ 124 | $ 154 | $ 122 | ||
Production costs per ounce of gold produced | $ 1,117 | $ 577 | $ 944 | $ 587 | ||
Total cash costs per ounce of gold produced | $ 884 | $ 649 | $ 922 | $ 601 | ||
___________________________ |
8 Minesite costs per tonne is a non-GAAP measure that does not have a standardized meaning under IFRS. For a reconciliation to production costs see "Reconciliation of Non-GAAP Performance Measures" below. See also "Note Regarding Certain Measures of Performance". |
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower processing volumes and lower grades as a result of changes in the mining method at the LaRonde mine that resulted in more lower grade ore being sourced from upper portions of the mine and a slower mining rate
- First Six Months of 2023 – Gold Production decreased when compared to the prior-year period due to lower grades and lower processing volumes as a result of the changes in mining method described above
Production Costs
- Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the timing of sales of concentrate inventory, higher underground mining costs from higher labour and materials costs and higher mill services costs from the transition to dry tailings disposition. Production costs per ounce increased when compared to the prior-year period primarily due to the reasons outlined above, partially offset by a weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the reasons outlined above. Production costs per ounce increased when compared to the prior-year period primarily as a result of higher production costs per tonne, the timing of sales of concentrate inventory and lower gold grades, partially offset by a weaker Canadian dollar relative to the
U.S. dollar
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the higher mining and milling costs outlined above. Total cash costs per ounce increased when compared to the prior-year period primarily for the same reasons as the increase in minesite costs per tonne, lower revenues from by-product sales and lower gold grades, partially offset by a weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period primarily due to the reasons outlined above
Highlights
- Despite the decrease in gold production when compare to the prior-year period, the second quarter of 2023 saw higher than expected gold production due to solid underground productivity from both the LaRonde and the LaRonde Zone 5 mines and higher than expected grades from the LaRonde mine. Underground development remained above target despite fewer production days as a result of the poor air quality from wildfires in the area. The mill also outperformed targets despite power outages in the area related to the wildfires
- The LaRonde Zone 5 processing facility is now planned to be idled late in the fourth quarter of 2023 (previously the third quarter of 2023) to take advantage of the approximately 2,000 tpd of excess capacity in the LaRonde mill. A planned 10-day shutdown was completed in July 2023 at the LaRonde mill, which included some adjustments made to the copper circuit for future processing of concentrate from Akasaba West
- Production in the 11-3 Zone at the LaRonde mine is expected to start in the third quarter of 2023 as previously planned. The required breakthrough of the escapeway ramp advanced in the second quarter with development of the mining levels ongoing and the pastefill distribution network also progressing well. The 11-3 Zone is expected to add additional flexibility in the LaRonde mine production plan
- Work to repair the ore handling system in the lower LaRonde mine will be performed through the second half of 2023 as previously planned. As a result, underground hoisting is expected to have reduced capacity for a period of approximately 26 days, with impact to production being mitigated by the processing of existing surface stockpiles
- With the further development of the exploration drift on Level 215 at LaRonde, exploration drilling from the new drill platforms is resuming with results expected later in the year. Surface drilling west of LaRonde Zone 5 during the second quarter continued to infill inferred mineral resources
Canadian Malartic Complex – Seven Millionth Ounce Poured; Production from Odyssey Underground Ramping-up
Canadian Malartic Complex – Operating | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 4,882 | 4,798 | 9,406 | 9,622 | ||
Tonnes of ore milled per day | 53,648 | 52,725 | 51,967 | 53,160 | ||
Gold grade (g/t) | 1.22 | 1.23 | 1.21 | 1.19 | ||
Gold production* (ounces) | 177,755 | 87,186 | 258,440 | 167,695 | ||
Production costs per tonne (C$) | $ 40 | $ 30 | $ 38 | $ 30 | ||
Minesite costs per tonne (C$) | $ 39 | $ 35 | $ 39 | $ 35 | ||
Production costs per ounce of gold produced | $ 811 | $ 647 | $ 780 | $ 676 | ||
Total cash costs per ounce of gold produced | $ 772 | $ 753 | $ 779 | $ 772 | ||
* Gold production reflects Agnico Eagle's |
Gold Production
- Second Quarter of 2023 – Gold production increased when compared to the prior-year period primarily due to the Company's increase in ownership of the mine from
50% to100% on March 31, 2023 - First Six Months of 2023 – Gold production increased when compared to the prior-year period for the same reason outlined above
Production Costs
- Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the fair value adjustment on inventory, the consumption of ore stockpile during the quarter. Production costs per ounce increased slightly when compared to the prior-year period primarily due to the higher production costs per tonne, partially offset by the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the fair value adjustment on inventory, the consumption of stockpiles and higher open pit mining costs. Production costs per ounce increased when compared to the prior-year period primarily due to higher production costs per tonne, partially offset by higher gold grades and the weaker Canadian dollar relative to the
U.S. dollar
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the consumption of ore stockpile during the quarter. Total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne, partially offset by the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the consumption of ore stockpiles and higher open pit mining costs. Total cash costs per ounce increased when compared to the prior-year period primarily due to the same reasons as the second quarter of 2023 minesite costs per ounce
Highlights
- On June 28th the Canadian Malartic complex reached a milestone by pouring its seven millionth gold ounce since achieving commercial production in 2011
- Gold production from the Odyssey mine in the second quarter of 2023 totaled 6,747 ounces. The commissioning of the paste plant has been slightly delayed because of corrective measures required with recently installed piping for the paste network. The paste plant startup is now scheduled for August 2023
- The Canadian Malartic pit was depleted in the second quarter of 2023. Work has commenced to prepare for in-pit tailings disposal, which is expected to start in the second half of 2024
- An update on Odyssey project development, construction and exploration highlights is set out in the Update on Key Value Drivers and Pipeline Projects section above
Goldex – Record Quarterly Gold Production and Mill Throughput Since Re-start; Best Development Quarter in Zone Deep 2
Goldex Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 761 | 738 | 1,459 | 1,482 | ||
Tonnes of ore milled per day | 8,363 | 8,121 | 8,061 | 8,188 | ||
Gold grade (g/t) | 1.74 | 1.74 | 1.74 | 1.69 | ||
Gold production (ounces) | 37,716 | 36,877 | 71,739 | 71,322 | ||
Production costs per tonne (C$) | $ 50 | $ 46 | $ 52 | $ 45 | ||
Minesite costs per tonne (C$) | $ 51 | $ 46 | $ 51 | $ 46 | ||
Production costs per ounce of gold produced | $ 747 | $ 719 | $ 781 | $ 740 | ||
Total cash costs per ounce of gold produced | $ 776 | $ 718 | $ 792 | $ 746 | ||
Gold Production
- Second Quarter of 2023 – Gold production increased when compared to the prior-year period primarily due to higher throughput levels resulting from good mill availability
- First Six Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades from increased ore sourced from the higher grade South Zone, partially offset by lower mill throughput levels in the first quarter of 2023 due to low ore availability in the Deep 1 Zone
Production Costs
- Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to higher underground maintenance costs from higher major component replacements in the quarter and higher underground production costs from higher consumable prices. Production costs per ounce increased when compared to the prior-year period primarily for the same reasons as the higher production costs per tonne, partially offset by the weaker Canadian dollar relative to the
U.S. dollar and the timing of inventory sales - First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the same reasons outlined above. Production costs per ounce increased when compared to the prior-year period primarily due to higher production costs per tonne, partially offset by the weaker Canadian dollar against the
U.S. dollar and higher gold grades
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as the higher production cost per tonne. Total cash costs per ounce increased when compared to the prior-year period due to higher minesite costs per tonne, partially offset by the weaker Canadian dollar against the
U.S. dollar - First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the same reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne, partially offset by higher gold grades and the weaker Canadian dollar against the
U.S. dollar and higher gold grades
Highlights
- Underground development continues to be on time and on budget for Deep 2 with development ahead of schedule for South Zone sector 3 opening mining flexibility
- The Akasaba West project commenced in September 2022 and remained on schedule through the second quarter of 2023 with construction of the garage, office and ponds completed and the water treatment facility ready for final installation in the third quarter of 2023. Achievement of commercial production remains expected to occur in the first quarter of 2024
Exploration Highlights
- Exploration at Goldex during the second quarter of 2023 continued to target the eastern extension of the South Zone in Sector 3, with the objective of converting mineral resources into mineral reserves and extending Sector 3 at depth and to the east below Level 140. The South Zone gold mineralization is hosted in silicified volcanic rocks with sulphides and stacking of quartz veins and veinlets, and has higher gold grades than the primary mineralized zones at Goldex
- Highlights from the conversion drilling in Sector 3 include 12.9 g/t gold over 8.0 metres at 1,376 metres depth in hole GD135-065, 5.4 g/t gold over 7.0 metres at 1,284 metres depth in hole GD135-052 and 5.4 g/t gold over 6.0 metres at 1,427 metres depth in hole GD138-009
- Exploration drilling also targeted the W Zone located at shallower depths approximately 200 metres west of the main deposit at Goldex, with new results of: 1.2 g/t gold over 25.0 metres at 496 metres depth and 7.3 g/t gold over 9.0 metres at 575 metres depth in hole GD27-056; and 3.7 g/t gold over 6.0 metres at 320 metres depth in hole GD27-057. Mineralization is observed to be similar to the main Goldex deposit, displaying quartz-tourmaline-albite veins with pyrite mineralization
ABITIBI REGION,
Detour Lake – Record Quarterly Mill Performance; Continued Focus on Mill Optimization to Achieve 28.0 Mtpa by 2025
Detour Lake Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022* | |||
Tonnes of ore milled (thousands of tonnes) | 6,800 | 6,519 | 13,197 | 9,789 | ||
Tonnes of ore milled per day | 74,725 | 71,638 | 72,912 | 68,455 | ||
Gold grade (g/t) | 0.85 | 1.01 | 0.85 | 1.02 | ||
Gold production (ounces) | 169,352 | 195,515 | 331,209 | 295,958 | ||
Production costs per tonne (C$) | $ 22 | $ 27 | $ 23 | $ 33 | ||
Minesite costs per tonne (C$) | $ 26 | $ 24 | $ 26 | $ 24 | ||
Production costs per ounce of gold produced | $ 666 | $ 703 | $ 685 | $ 870 | ||
Total cash costs per ounce of gold produced | $ 731 | $ 640 | $ 750 | $ 626 | ||
*For the Six Months Ended June 30, 2022, the operating statistics are reported for the period from February 8, 2022 to June 30, 2022. |
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior year period primarily due to lower grades as expected due to the planned mining sequence
- First Six Months of 2023 – Gold production increased when compared to the prior-year period reflecting a full first quarter of production in 2023 as compared to 51 days in the first quarter of 2022 following the Merger, partially offset by lower gold grades as expected due to the planned mining sequence
Production Costs
- Second Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to the realization in 2022 of fair value adjustments to inventory arising from the purchase price allocation. Production costs per ounce decreased when compared to the prior-year period primarily due to the same reasons as outlined above
- First Six Months of 2023 – Production costs per tonne and production costs per ounce decreased compared to the prior year period due to the same reasons outlined above
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to higher maintenance costs on mobile equipment and spare parts, partially offset by higher throughput volumes. Total cash costs per ounce increased when compared to the prior year period due lower gold grades and higher mining costs, partially offset by the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior year period primarily due to higher maintenance costs on mobile equipment and spare parts. Total cash cost per ounce increased when compared to the prior year period primarily due to higher mining and milling costs from higher fuel and electricity prices and lower gold grades, partially offset by the weaker Canadian dollar relative to the
U.S. dollar
Highlights
- Detour Lake achieved record quarterly mill performance in the second quarter of 2023 with an overall solid operating performance
- In addition to the four CAT 798 trucks commissioned in the first quarter of 2023, two additional trucks were commissioned in the second quarter
- An update on the multiple initiatives to increase mill throughput to 28.0 Mtpa by 2025, potential expansion scenarios and exploration highlights is set out in the "Update on Key Value Drivers and Pipeline Projects" section above
Macassa – Record Quarterly Mill Throughput, Skipped Tonnes and Underground Development Underscore a Solid Production Result
Macassa Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022* | |||
Tonnes of ore milled (thousands of tonnes) | 112 | 88 | 199 | 135 | ||
Tonnes of ore milled per day | 1,231 | 970 | 1,099 | 945 | ||
Gold grade (g/t) | 16.16 | 22.02 | 19.29 | 20.15 | ||
Gold production (ounces) | 57,044 | 61,262 | 121,159 | 85,750 | ||
Production costs per tonne (C$) | $ 464 | $ 479 | $ 519 | $ 615 | ||
Minesite costs per tonne (C$) | $ 503 | $ 519 | $ 539 | $ 520 | ||
Production costs per ounce of gold produced | $ 676 | $ 539 | $ 631 | $ 762 | ||
Total cash costs per ounce of gold produced | $ 747 | $ 582 | $ 672 | $ 641 | ||
*For the Six Months Ended June 30, 2022, the operating statistics are reported for the period from February 8, 2022 to June 30, 2022. |
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior year period primarily due to lower gold grades in the mining sequence, partially offset by higher throughput volumes
- First Six Months of 2023 – Gold production increased when compared to the prior-year period reflecting higher mine productivity and a full first quarter of production in 2023 as compared to 51 days in the first quarter of 2022 following the Merger
Production Costs
- Second Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to the realization in 2022 of fair value adjustments to inventory arising from the purchase price allocation. Production costs per ounce increased when compared to the prior-year period primarily due to lower gold grades
- First Six Months of 2023 – Production costs per tonne and production cost per ounce decreased when compared to the prior year period due to the same reasons outlined above
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period due to higher mining volumes, partially offset by higher mining costs from higher input prices. Total cash costs per ounce increased when compared to the prior-year period due to higher mining costs, lower gold grades and the timing of inventory sales, partially offset by the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior year period primarily due to higher mining costs from higher input prices and the timing of inventory sales, partially offset by higher mining volumes. Total cash costs per ounce increased when compared to the prior year period for the same reasons outlined above
Highlights
- Macassa realized record mill throughput, record tonnage hoisted and record underground development in the second quarter of 2023. Macassa achieved a solid production during the quarter and continues to build on productivity gains showcasing a growing operation with increasing stability as adherence and compliance to plan continue to improve
- The upgrade of the ventilation system progressed as planned with the second fan commissioned in the second quarter of 2023
Exploration Highlights
Exploration drilling at Macassa during the second quarter of 2023 targeted the Main Break, the eastern extension of the South Mine Complex ("SMC") and the western and deeper extension of the AK deposit.
- Extension drilling targeting the Main Break is suggesting the potential for a new lens of gold mineralization close to current mine infrastructure, with results of 25.6 g/t gold over 2.0 metres at 1,601 metres depth in hole 53-4733 and 14.7 g/t gold over 3.7 metres at 1,615 metres depth in hole 53-4732. Highlight hole 53-4732 returned 10.7 g/t gold over 1.4 metres at 1,743 metres depth in the Main Break beyond the current mineral resources, further indicating that gold mineralization may continue down-dip below the lowest development at the historic Kirkland Minerals and Teck Hughes mines. East of Shaft #4, encouraging drill results in the Main Break are increasing confidence in the approximately 200 metres up-dip extension of mineral resources with hole 58-833 returning 15.5 g/t gold over 2.0 metres at 1,875 metres depth and hole 58-839 returning 10.8 g/t gold over 2.7 metres at 1,870 metres depth
- On the western side of the SMC, drilling to the south intersected significant gold mineralization west of the current mineral resources, showing the potential for a mineral resource extension. Multiple mineralized intercepts in hole 57-1386 included 23.6 g/t gold over 1.3 metres at 1,734 metres depth and in hole 57-1387 included 29.3 g/t gold over 1.1 metres at 1,723 metres depth
Selected recent drill results from Macassa and AK are set out in the composite longitudinal section and the table below.
[Macassa Mine and AK Zone – Composite Longitudinal Section]
Recent selected exploration drill results from Macassa and AK deposit
Drill hole | Deposit / Zone | From | To | Depth of | Estimated | Gold grade (g/t) | Gold grade |
53-4732 | Macassa - SMC East | 142.2 | 145.9 | 1,615 | 3.7 | 14.7 | 14.7 |
and | Macassa - Main Break | 627.8 | 629.8 | 1,743 | 1.4 | 25.9 | 10.7 |
and | Macassa - Main Break | 645.6 | 648.2 | 1,760 | 1.8 | 4.7 | 4.7 |
53-4733 | Macassa - SMC East | 127.6 | 129.6 | 1,601 | 2.0 | 25.6 | 25.6 |
57-1386 | Macassa - SMC West | 113.6 | 116.3 | 1,734 | 1.3 | 23.6 | 23.6 |
and | Macassa - SMC West | 124.3 | 128.0 | 1,730 | 1.6 | 13.9 | 13.9 |
57-1387 | Macassa - SMC West | 85.0 | 87.2 | 1,721 | 1.3 | 9.9 | 9.9 |
and | Macassa - SMC West | 94.5 | 96.5 | 1,723 | 1.1 | 29.3 | 29.3 |
and | Macassa - SMC West | 105.9 | 107.9 | 1,718 | 1.1 | 11.6 | 11.6 |
58-833 | Macassa - Main Break | 168.2 | 170.4 | 1,875 | 2.0 | 25.4 | 15.5 |
58-839 | Macassa - Main Break | 162.3 | 165.1 | 1,870 | 2.7 | 17.9 | 10.8 |
KLAK-206 | AK - Ramp | 137.9 | 147.4 | 250 | 5.1 | 11.1 | 11.1 |
KLAK-186 | AK - Ramp | 121.5 | 125.2 | 240 | 2.5 | 10.4 | 10.4 |
and | AK - Ramp | 126.9 | 128.9 | 244 | 1.3 | 8.5 | 8.5 |
*Results from Macassa mine use a capping factor ranging from 68.6 g/t to 445.7 g/t gold depending on the zone. Results from AK use a capping factor of 70 g/t gold. |
Meliadine Mine – Record Monthly Mill Throughput in May; Record Quarterly Health and Safety Performance
Meliadine Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 461 | 449 | 937 | 881 | ||
Tonnes of ore milled per day | 5,066 | 4,934 | 5,177 | 4,867 | ||
Gold grade (g/t) | 6.14 | 6.97 | 6.13 | 6.51 | ||
Gold production (ounces) | 87,682 | 97,572 | 178,149 | 178,276 | ||
Production costs per tonne (C$) | $ 230 | $ 244 | $ 229 | $ 237 | ||
Minesite costs per tonne (C$) | $ 261 | $ 234 | $ 250 | $ 237 | ||
Production costs per ounce of gold produced | $ 899 | $ 885 | $ 898 | $ 926 | ||
Total cash costs per ounce of gold produced | $ 1,019 | $ 837 | $ 978 | $ 912 | ||
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades, partially offset by higher mill throughput
- First Six Months of 2023 – Gold production decreased slightly when compared to the prior-year period primarily due to lower gold grades, mostly offset by higher mill throughput in the first quarter of 2023 from incremental mill improvements and additional ore sourced from the open pit
Production Costs
- Second Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to the timing of inventory sales. Production costs per ounce increased when compared to the prior-year period primarily due to lower gold grades partially offset by the lower production cost per tonne and the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the timing of inventory sales and a higher deferred stripping costs, partially offset by higher mill and logistics costs. Production costs per ounce decreased when compared to the prior-year period due to the weaker Canadian dollar relative to the
U.S. dollar and the lower production costs per tonne, partially offset by lower gold grades
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the consumption of ore stockpile inventory and higher mill costs from higher fuel prices. Total cash costs per ounce increased when compared to the prior-year period due to the higher minesite costs per tonne and lower gold grades, partially offset by the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to higher fuel prices, partially offset by the increase in ore stockpile inventory. Total cash costs per ounce increased when compared to the prior-year period due to lower gold grades and higher minesite costs per tonne, partially offset by the weaker Canadian dollar relative to the
U.S. dollar
Highlights
- Meliadine continued to improve mill availability and achieved record monthly mill throughput in May 2023 as well as an overall strong performance from the processing plant in the second quarter of 2023
- Meliadine experienced approximately 11 days of downtime in June related to caribou migration which affected the open pit and paste plant, as well as underground development. The better than anticipated development and hauling performances in April and May helped to mitigate the overall impact of the operational downtime
- The Phase 2 mill expansion is expected to be completed in mid-2024 and the processing rate ramp-up is expected to increase throughput to achieve 6,000 tpd by year-end 2024. In the second quarter of 2023, the CIL building advanced with mechanical piping and electrical work ongoing, the secondary grinding building concrete work is ongoing with the structure erection expected to commence in early August and the power plant building interior architectural work is ongoing. The waterline installation is underway and is expected to be completed in 2024, allowing for utilization in the summer of 2025
Exploration Highlights
Exploration drilling during the second quarter at Meliadine was carried out from both surface and the new exploration ramp that provides a platform at approximately 460 metres depth and extends deeper towards the west. Highlight results from the first half of 2023 include:
- At the Tiriganiaq deposit, drilling demonstrated continuity of mineralization at depth below the deepest drill holes to date. Hole ML425-9740-D28 yielded 8.0 g/t gold over 3.7 metres at 742 metres depth. Exploration drilling will continue to investigate this new plunging mineralization from the exploration ramp being driven eastward. Closer to surface at Tiriganiaq, hole M22-3246 yielded 9.6 g/t gold over 4.1 metres at 204 metres depth in the up-plunge of the main mineralized trend
- At the Wesmeg North deposit, deep drilling intersected gold mineralization below current mineral resources with hole ML400-10030-D8 yielding 6.3 g/t gold over 7.4 metres at 558 metres depth. In the western plunge of the Wesmeg deposit, hole ML450-9290-D9 yielded 6.4 g/t gold over 8.2 metres at 484 metres depth and hole ML450-9290-D15 yielded 7.6 g/t gold over 4.3 metres at 530 metres depth
- At the Wesmeg deposit, holes ML400-10200-D2 and ML400-10200-D8 also indicate the extension of mineralization at depth with 6.4 g/t gold over 6.8 metres at 453 metres depth and 18.2 g/t gold over 3.6 metres at 531 metres depth, respectively
- At the F-Zone deposit, located at shallow depth approximately 1.5 kilometres southeast of Tiriganiaq, hole M23-3583A intersected 6.4 g/t gold over 16.0 metres at 167 metres depth in the upper portion of the deposit, hole M22-3473 intersected 9.3 g/t gold over 4.6 metres at 426 metres depth in the lower portion of the deposit, and hole M22-3477 intersected 6.4 g/t gold over 3.1 metres at 383 metres depth in a previously undrilled area approximately 300 metres beyond the main mineral resources at F-Zone, further demonstrating the potential to grow the deposit laterally and at depth
In light of the favourable exploration drilling results at Meliadine, the Company has approved a supplemental budget of
Selected recent exploration drill intercepts from the Tiriganiaq, Wesmeg, Wesmeg North and F-Zone deposits at the Meliadine property are set out in the plan map, composite longitudinal section and table below.
[Meliadine Mine – Plan Map & Composite Longitudinal Section]
Recent selected exploration drill results from Tiriganiaq, Wesmeg, Wesmeg North and
F-Zone deposits at Meliadine
Drill hole | Deposit / Lode | From (metres) | To (metres) | Depth of | Estimated true | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped) |
M22-3246 | Tiriganiaq / 1000 | 260.5 | 265.0 | 204 | 4.1 | 9.6 | 9.6 |
ML425-9740-D28 | Tiriganiaq / 1015 | 336.9 | 341.1 | 742 | 3.7 | 8.0 | 8.0 |
ML400-10030-D8 | Wesmeg N / 950 | 182.6 | 191.8 | 558 | 7.4 | 25.0 | 6.3 |
including | 183.5 | 186.2 | 556 | 2.2 | 79.6 | 15.8 | |
ML450-9290-D9 | Wesmeg N / 922 | 67.1 | 76.3 | 484 | 8.2 | 6.4 | 6.4 |
including | 70.8 | 76.3 | 484 | 4.9 | 9.2 | 9.2 | |
ML450-9290-D15 | Wesmeg N / 922 | 97.1 | 103.8 | 530 | 4.3 | 7.6 | 7.6 |
ML400-10200-D2 | Wesmeg / 650 | 260.4 | 267.4 | 453 | 6.8 | 6.4 | 6.4 |
including | 260.4 | 263.1 | 453 | 2.6 | 12.3 | 12.3 | |
ML400-10200-D8 | Wesmeg / 650 | 278.4 | 282.0 | 531 | 3.6 | 18.2 | 18.2 |
M22-3477 | F-Zone / 4130 | 432.4 | 435.6 | 383 | 3.1 | 6.4 | 6.4 |
M22-3473 | F-Zone / 4135 | 459.4 | 464.4 | 426 | 4.6 | 9.3 | 9.3 |
M23-3583A | F-Zone / 4120 | 169.8 | 187.2 | 167 | 16.0 | 7.2 | 6.4 |
*Results from the Meliadine mine use capping factors of 250 g/t gold for Tiriganiaq Lode 1000, 40 g/t gold for iron formations at Wesmeg, 20 to 90 g/t gold at Wesmeg North, and 25 g/t gold at F-Zone. |
Meadowbank Complex – Solid Operational Performance; Modifications Complete to Cemented Rockfill Plant
Meadowbank Complex – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 845 | 930 | 1,828 | 1,785 | ||
Tonnes of ore milled per day | 9,286 | 10,220 | 10,099 | 9,862 | ||
Gold grade (g/t) | 3.79 | 3.49 | 3.85 | 2.94 | ||
Gold production (ounces) | 94,775 | 96,698 | 205,885 | 156,463 | ||
Production costs per tonne (C$) | $ 186 | $ 147 | $ 181 | $ 145 | ||
Minesite costs per tonne (C$) | $ 178 | $ 135 | $ 176 | $ 149 | ||
Production costs per ounce of gold produced | $ 1,240 | $ 1,110 | $ 1,202 | $ 1,304 | ||
Total cash costs per ounce of gold produced | $ 1,156 | $ 993 | $ 1,144 | $ 1,305 | ||
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior-year period due to lower processing volumes due to mill shutdowns from the caribou migration, partially offset by higher gold grades
- First Six Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades from underground production and a higher than anticipated grade sequence in the Whale Tail and IVR open pits in the first quarter of 2023
Production Costs
- Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to lower additions to ore stockpiles in the current year, the start of underground mining at Amaruq and higher fuel costs from higher fuel prices, partially offset by increased deferred stripping costs. Production costs per ounce increased when compared to the prior-year period for the same reasons given for the higher production costs per tonne outlined above, partially offset by higher gold grades and the weaker Canadian dollar relative to the
U.S. dollar - First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the same reasons outlined above. Production costs per ounce decreased when compared to the prior-year period due to higher gold grades, partially offset by higher production costs per tonne
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the same reasons as the second quarter production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons as the second quarter production costs per ounce
- First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the factors outlined above regarding the increase in the production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year period due to higher gold grades, partially offset by higher minesite costs per tonne
Highlights
- During the second quarter of 2023, the longer than usual caribou migration forced road closures longer than planned, preventing transportation of fuel and ore. The road closures resulted in production stoppage at the open pit and underground mine, ultimately causing a mill shut down of approximately 15 days and resulting in
19% less tonnage of ore processed. Higher gold grade from ore stockpiles partially mitigated the impact of the production stoppage - The development rate underground progressed well during the quarter with month over month gains and development exceeded expectations for the month of June. Modifications to the cemented rockfill plant were completed as expected midway through the second quarter of 2023 and the plant achieved better production than targeted during the quarter
- Utilization of the high pressure grinding rolls continued ramping up and reached its highest daily milling rate for the quarter since the startup of the high pressure grinding rolls
Fosterville Mine – Operating Statistics* | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 176 | 122 | 324 | 213 | ||
Tonnes of ore milled per day | 1,934 | 1,331 | 1,790 | 1,486 | ||
Gold grade (g/t) | 14.77 | 22.24 | 16.49 | 24.76 | ||
Gold production (ounces) | 81,813 | 86,065 | 168,371 | 167,892 | ||
Production costs per tonne (A$) | $ 308 | $ 597 | $ 335 | $ 890 | ||
Minesite costs per tonne (A$) | $ 304 | $ 370 | $ 321 | $ 369 | ||
Production costs per ounce of gold produced | $ 438 | $ 561 | $ 430 | $ 812 | ||
Total cash costs per ounce of gold produced | $ 436 | $ 351 | $ 416 | $ 331 | ||
*For the Six Months Ended June 30, 2022, the operating statistics are reported for the period from February 8, 2022 to June 30, 2022. |
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades from the mining sequence and lower grade than anticipated in a specific area of the Swan zone, partially offset by higher mill throughput
- First Six Months of 2023 – Gold production increased slightly when compared to the prior-year period reflecting a full first quarter of production in 2023 as compared to 51 days in 2022 following the Merger and higher mill throughput, partially offset by lower gold grades
Production Costs
- Second Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to the realization in 2022 of fair value adjustments to inventory on the purchase price allocation. Production costs per ounce decreased when compared to the prior-year period for the same reasons outlined above, partially offset by lower gold grades
- First Six Months of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the same reasons as the decrease to quarterly production costs per tonne. Production costs per ounce decreased when compared to the prior year period due to the same reasons as the decrease to quarterly production costs per ounce
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period primarily due to higher throughput volumes, partially offset by higher mining costs from higher consumable prices. Total cash costs per ounce increased when compared to the prior-year period due to the lower gold grades, partially offset by lower minesite costs per tonne
- First Six Months of 2023 – Minesite costs per tonne decreased when compared to the prior-year period primarily due the same reasons outlined above. Total cash costs per ounce increased primarily due to lower gold grades and higher consumable prices
Highlights
- On May 29, 2023 the Victorian EPA lifted the prohibition notice on
Fosterville with respect to low frequency noise that was imposed in late 2021, which restricted underground activities from midnight to 6 a.m. TheFosterville mine returned to full operating hours in June, with the additional resources focused on advancing delayed mine development and upgrading of the primary ventilation system - In the second quarter of 2023,
Fosterville encountered lower grade than anticipated, reflecting the variability in the high grade nature of the mineralization - In the second quarter of 2023, work continued on the raise of the flotation tailings storage facility which is now more than
95% complete with minor delays experienced in the second quarter due to wet conditions. The raise is expected to provide an additional 17 months of tailings storage capacity and is scheduled to be completed in August
Exploration Highlights
Exploration drilling at
Kittila – Strong Operational Performance from Underground Mine; Major Projects Nearing Completion
Kittila Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 417 | 556 | 913 | 1,017 | ||
Tonnes of ore milled per day | 4,582 | 6,110 | 5,044 | 5,619 | ||
Gold grade (g/t) | 4.42 | 4.35 | 4.59 | 4.01 | ||
Gold production (ounces) | 50,130 | 64,814 | 113,822 | 110,322 | ||
Production costs per tonne (EUR) | € 101 | € 89 | € 100 | € 92 | ||
Minesite costs per tonne (EUR) | € 104 | € 88 | € 101 | € 89 | ||
Production costs per ounce of gold produced | $ 864 | $ 823 | $ 849 | $ 932 | ||
Total cash costs per ounce of gold produced | $ 899 | $ 828 | $ 847 | $ 915 | ||
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower mill throughput from fewer processing days from the planned 10-day autoclave maintenance
- First Six Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades, partially offset by lower mill throughput from the maintenance activities described above
Production Costs
- Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to higher mill maintenance costs from the autoclave shutdown and higher materials costs in underground mining, partially offset by the buildup of stockpile inventory. Production costs per ounce increased when compared to the prior-year period due to the higher production costs per tonne, partially offset by the timing of inventory sales and higher gold grades
- First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due the same reasons outlined above. Production costs per ounce decreased when compared to the prior-year period due to higher gold grades and the timing of inventory sales, partially offset by the higher production costs per tonne
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the same reasons for the increase in the production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to higher minesite costs per tonne, partially offset by higher gold grades
- First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the same reasons for the increase in quarterly production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year period due to higher gold grades, partially offset by higher minesite costs per tonne
Highlights
- In the second quarter of 2023, Kittila continued to deliver a strong operational performance, with several critical projects either finished or nearing completion. At the mill, the nitrogen removal plant, which was commissioned in the first quarter of 2023, is operating effectively. At the mine, efforts are concentrated on ramping up hoist capacity and the commissioning of the service hoist which is expected to be completed in the third quarter of 2023. Progress on the main level is ahead of schedule, with two maintenance bays already operational, showcasing a positive trend in development
- The costs of electricity at the Kittila mine in the second quarter of 2023 has experienced a decreasing trend
- Kittila hosted the SAC for a site visit in the second quarter of 2023 as part of the review of the current permit limitation. The Company expects a final decision from the SAC in the third quarter of 2023. Until then, the Company continues to rely on the current mining permit of 1.6 Mtpa while maintaining operational flexibility to reach the 2.0 Mtpa volume. If the SAC reverses the lower court ruling and reinstates the operating permit at 2.0 Mtpa, the Company expects Kittila to produce up to 30,000 ounces of additional gold in the second half of 2023 as compared to current guidance. If the SAC upholds the lower court decision and maintains the current operating permit at 1.6 Mtpa, the Company would be required to scale back operations during the fourth quarter of 2023 to remain within the permitted rate
Exploration Highlights
Exploration drilling at Kittila during the second quarter of 2023 totaled 21,206 metres and mainly targeted the Main and Sisar zones in the northern and southern portions of the deposit at approximately 1.0 to 1.4 kilometres depth.
- To the north in the Rimpi area, highlight intersections in the Main Zone outside the current mineral resources include hole RIE23-603 returning 5.7 g/t gold over 5.4 metres at 1,094 metres depth and hole RIE23-607 returning 6.0 g/t gold over 4.9 metres at 1,098 metres depth and 7.2 g/t gold over 4.5 metres at 1,102 metres depth in the steep plunge extension of the Main Zone lens, demonstrating the potential to further extend the mineralization at depth
- To the south in the Roura area outside the current mineral resources, highlight intersections in the Main Zone include hole ROU23-602 returning 6.0 g/t gold over 4.8 metres at 1,174 metres depth and 8.5 g/t gold over 5.5 metres at 1,194 metres depth, and hole ROD23-700 returning 7.7 g/t gold over 7.3 metres at 1,152 metres depth, further confirming the potential to extend the Main Zone at depth near the bottom of the new shaft
- Hole STEC22-005 intersected 3.1 g/t gold over 4.5 metres at 142 metres depth in the first intercept of the Sisar Zone at shallow depth in the Rimpi area, opening up a new target area for further exploration
Selected recent drill results from Kittila are set out in the composite longitudinal section and the table below.
[Kittila Mine – Composite Longitudinal Section]
Recent selected exploration drill results from Main and Sisar zones at Kittila
Drill hole | Zone / Area | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) |
RIE23-603 | Main Rimpi | 159.0 | 166.0 | 1,094 | 5.4 | 5.7 |
RIE23-607 | Main Rimpi | 156.2 | 163.8 | 1,098 | 4.9 | 6.0 |
and | Main Rimpi | 176.0 | 182.8 | 1,102 | 4.5 | 7.2 |
ROD23-700 | Main Roura | 160.0 | 175.4 | 1,152 | 7.3 | 7.7 |
ROU23-602 | Main Roura | 189.5 | 200.0 | 1,174 | 4.8 | 6.0 |
Main Roura | 212.0 | 223.0 | 1,194 | 5.5 | 8.5 | |
STEC22-005 | Sisar Top | 150.0 | 156.0 | 142 | 4.5 | 3.1 |
* Results from the Kittila mine are uncapped. |
Pinos Altos Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 401 | 366 | 765 | 750 | ||
Tonnes of ore milled per day | 4,407 | 4,022 | 4,227 | 4,144 | ||
Gold grade (g/t) | 1.80 | 2.02 | 1.97 | 2.08 | ||
Gold production (ounces) | 22,159 | 23,020 | 46,293 | 48,190 | ||
Production costs per tonne | $ 87 | $ 109 | $ 88 | $ 97 | ||
Minesite costs per tonne | $ 90 | $ 101 | $ 91 | $ 94 | ||
Production costs per ounce of gold produced | $ 1,566 | $ 1,732 | $ 1,461 | $ 1,503 | ||
Total cash costs per ounce of gold produced | $ 1,282 | $ 1,383 | $ 1,196 | $ 1,224 | ||
Gold Production
- Second Quarter of 2023 – Gold production decreased slightly when compared to the prior-year period primarily due to lower gold grades from the mining sequence, mostly offset by higher mill throughput levels
- First Six Months of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades from the mining sequence, partially offset by higher mill throughput levels
Production Costs
- Second Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to lower underground rehab requirements, the timing of inventory sales and lower deferred stripping adjustment, partially offset by higher open pit production costs. Production costs per ounce decreased when compared to the prior-year period due to the lower production costs per tonne, partially offset by lower gold grades
- First Six Months of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to lower rehab requirements in the underground mine, higher deferred stripping and a favourable stockpile adjustment. Production costs per ounce in the first six months of 2023 decreased when compared to the prior-year period due to lower production costs per tonne, an appreciating Mexican peso relative to the
U.S. dollar and lower gold grades
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period primarily due to the same reasons for the increase in the production costs per tonne. Total cash costs per ounce in the second quarter of 2023 decreased when compared to the prior-year period due to the lower minesite costs per tonne and higher by-product revenues from higher silver sales, partially offset by lower gold grades
- First Six Months of 2023 – Minesite costs per tonne decreased when compared to the prior-year period primarily due to the reasons outlined above. Total cash costs per ounce in the first six months of 2023 decreased when compared to the prior-year period due to lower minesite costs per tonne and higher by-product revenues from higher silver sales, partially offset by lower gold grades
Highlights
- Both gold and silver production at the
Pinos Altos complex were higher than planned as a result of solid mining performance in both the underground and open pit operations
La
La India Mine – Operating Statistics | Three Months Ended | Six Months Ended | ||||
Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 880 | 1,356 | 1,540 | 2,919 | ||
Tonnes of ore milled per day | 9,670 | 14,901 | 8,508 | 16,127 | ||
Gold grade (g/t) | 0.74 | 0.52 | 0.72 | 0.55 | ||
Gold production (ounces) | 17,833 | 20,016 | 34,154 | 41,718 | ||
Production costs per tonne | $ 27 | $ 13 | $ 28 | $ 12 | ||
Minesite costs per tonne | $ 28 | $ 14 | $ 30 | $ 13 | ||
Production costs per ounce of gold produced | $ 1,326 | $ 872 | $ 1,281 | $ 844 | ||
Total cash costs per ounce of gold produced | $ 1,385 | $ 936 | $ 1,348 | $ 876 | ||
Gold Production
- Second Quarter of 2023 – Gold production decreased when compared to the prior-year period as a result of lower tonnes placed on the heap leach, partially offset by higher gold grades
- First Six Months of 2023 – Gold production decreased when compared to the prior-year period primarily due to the same reasons outlined above
Production Costs
- Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to fewer tonnes placed on the heap leach and higher open pit production costs resulting from a higher strip ratio with the transition from the Main pit to the
El Realito pit. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, partially offset by higher gold grades - First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the same reasons outlined above. Production costs per ounce increased when compared to the prior-year period due to higher production costs per tonne, partially offset by higher gold grades
Minesite and Total Cash Costs
- Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons as the higher production costs per ounce
- First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons as the increase in production costs per ounce
Highlights
- Open pit mining and crusher operations are expected to be concluded in the fourth quarter of 2023
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in
Further Information
For further information regarding Agnico Eagle, contact Investor Relations at investor.relations@agnicoeagle.com or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite costs per tonne", "net debt", "adjusted net income", "adjusted net income per share", "sustaining capital expenditures", "development capital expenditures" and "operating margin" that are not standardized measures under IFRS. These measures may not be comparable to similar measures reported by other gold mining companies. For a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS, other than adjusted net income, see "Reconciliation of Non-GAAP Financial Performance Measures" below.
The total cash costs per ounce of gold produced also referred to as "total cash cost per ounce" is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, inventory production costs, the impact of purchase price allocation in connection with mergers and acquisitions to inventory accounting, realized gains and losses on hedges of production costs, operational care and maintenance costs due to COVID-19 and other adjustments, which include the costs associated with a
Agnico Eagle's primary business is gold production and the focus of its current operations and future development is on maximizing returns from gold production, with other metal production being incidental to the gold production process. Accordingly, all metals other than gold are considered by-products.
In this press release, unless otherwise indicated, total cash costs per ounce of gold produced is reported on a by-product basis. Total cash costs per ounce of gold produced is reported on a by-product basis because (i) the majority of the Company's revenues are from gold, (ii) the Company mines ore, which contains gold, silver, zinc, copper and other metals, (iii) it is not possible to specifically assign all costs to revenues from the gold, silver, zinc, copper and other metals the Company produces, (iv) it is a method used by management and the Board of Directors to monitor operations, and (v) many other gold producers disclose similar measures on a by-product rather than a co-product basis. Investors should also consider these measures in conjunction with other data prepared in accordance with IFRS.
In this press release, unless otherwise indicated, all-in sustaining costs per ounce of gold produced is reported on a by-product basis. All-in sustaining costs per ounce of gold produced (also referred to as "all-in sustaining costs per ounce") on a by-product basis is calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options), lease payments related to sustaining assets and reclamation expenses, and then dividing by the number of ounces of gold produced. These additional costs reflect the additional expenditures that are required to be made to maintain current production levels. The AISC per ounce of gold produced on a co-product basis is calculated in the same manner as the AISC per ounce of gold produced on a by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment is made for by-product metal revenues. AISC per ounce seeks to reflect total sustaining expenditures of producing and selling an ounce of gold while maintaining current operations. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of total cash costs per ounce and AISC of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Investors should note that AISC per ounce is not reflective of all cash expenditures as it does not include income tax payments, interest costs or dividend payments. This measure also does not include depreciation or amortization.
The World Gold Council ("WGC") is a non-regulatory market development organization for the gold industry. Although the WGC is not a mining industry regulatory organization, it has worked closely with its member companies to develop relevant non-GAAP measures. The Company follows the guidance on all-in sustaining costs released by the WGC in November 2018. Adoption of the AISC metric is voluntary and, notwithstanding the Company's adoption of the WGC's guidance, AISC per ounce of gold produced reported by the Company may not be comparable to data reported by other gold mining companies. The Company believes that this measure provides helpful information about operating performance. However, this non-GAAP measure should be considered together with other data prepared in accordance with IFRS as it is not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for inventory production costs, operational care and maintenance costs due to COVID-19, and other adjustments, and then dividing by tonnage of ore processed. As the total cash costs per ounce of gold produced can be affected by fluctuations in by‑product metal prices and foreign exchange rates, management believes, and investors should note, that minesite costs per tonne is useful to investors in providing additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware, and investors should note, that this per tonne measure of performance can be affected by fluctuations in processing levels. This inherent limitation may be partially mitigated by using this measure in conjunction with production costs prepared in accordance with IFRS.
Net debt is calculated by adjusting the total of the current portion of long-term debt and non-current long-term debt as recorded on the consolidated balance sheet for deferred financing costs and cash and cash equivalents. Management believes the measure of net debt is useful to help investors to determine the Company's overall debt position and to evaluate future debt capacity of the Company.
Adjusted net income and adjusted net income per share are calculated by adjusting the net income as recorded in the consolidated statements of income (loss) for the effects of certain non-recurring, unusual and other items that the Company believes are not reflective of the Company's underlying performance for the reporting period. Adjusted net income is calculated by adjusting net income for foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, revaluation gain, impairment loss charges and reversals, environmental remediation, severance and transaction costs related to acquisitions, purchase price allocations to inventory, income and mining taxes adjustments as well as other items (which includes changes in estimates of asset retirement obligations at closed sites and gains and losses on the disposal of assets, self-insurance losses, multi-year donations and integration costs). Adjusted net income per share is calculated by dividing adjusted net income by the number of shares outstanding on a basic and diluted basis. The Company believes that these generally accepted industry measures are useful in that they allow for the evaluation of the results of continuing operations and in making comparisons between periods. Adjusted net income and adjusted net income per share are intended to provide investors with information about the Company's continuing income generating capabilities from its core mining business, excluding the above adjustments, which are not reflective of operational performance. Management uses this measure to, and believes it is helpful to investors so they can, understand and monitor for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
Operating margin is calculated by deducting production costs from revenue from mining operations. In order to reconcile operating margin to net income as recorded in the consolidated financial statements, the Company adds the following items to the operating margin: income and mining taxes expense; other expenses (income); care and maintenance expenses; foreign currency translation (gain) loss; environmental remediation costs; gain (loss) on derivative financial instruments; finance costs; general and administrative expenses; amortization of property, plant and mine development; exploration and corporate development expenses; revaluation gain and impairment losses (reversals). The Company believes that operating margin is a useful measure that represents the operating performance of its individual mines associated with the ongoing production and sale of gold and by-product metals without allocating Company-wide overhead, including exploration and corporate development expenses, amortization of property, plant and mine development, general and administrative expenses, finance costs, gain and losses on derivative financial instruments, environmental remediation costs, foreign currency translation gains and losses, other expenses and income and mining tax expenses. Management uses this measure internally to plan and forecast future operating results. This measure is intended to provide investors with additional information about the Company's underlying operating results and should be evaluated in conjunction with other data prepared in accordance with IFRS.
Capital expenditures are classified into sustaining capital expenditures and development capital expenditures. Sustaining capital expenditures are expenditures incurred during the production phase to sustain and maintain the existing assets so they can achieve constant expected levels of production from which the Company will derive economic benefits. Sustaining capital expenditures include expenditure for assets to retain their existing productive capacity as well as to enhance performance and reliability of the operations. Development capital expenditures represents the spending at new projects and/or expenditure at existing operations that is undertaken with the intention to increase production levels or mine life above the current plans. Management uses these measures in the capital allocation process and to assess the effectiveness of its investments. Management believes these measures are useful so investors can assess the purpose and effectiveness of the capital expenditures split between sustaining and development in each reporting period. The classification between sustaining and development capital expenditures does not have a standardized definition in accordance with IFRS and other companies may classify expenditures in a different manner.
This news release also contains information as to estimated future total cash costs per ounce, AISC per ounce and minesite costs per tonne. The estimates are based upon the total cash costs per ounce, AISC per ounce and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at July 26, 2023. Certain statements contained in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws and are referred to herein as "forward-looking statements". All statements, other than statements of historical fact, that address circumstances, events, activities or developments that could, or may or will occur are forward looking statements. When used in this news release, the words "achieve", "aim", "anticipate", "could", "estimate", "expect", "forecast", "future", "plan", "possible", "potential", "schedule", "target", "tracking", "will", and similar expressions are intended to identify forward-looking statements. Such statements include, without limitation: the Company's forward-looking guidance, including metal production, estimated ore grades, statements regarding or relating to recovery rates, project timelines, drilling targets or results, life of mine estimates, total cash costs per ounce, AISC per ounce, minesite costs per tonne, other expenses and cash flows; the potential for additional gold production at Kittila, the AK deposit and Upper Beaver; the estimated timing and conclusions of technical studies and evaluations; the methods by which ore will be extracted or processed; the Company's expansion plans at Detour, Kittila, Meliadine Phase 2, the Amaruq underground project and the Odyssey project, including the timing, funding, completion and commissioning thereof and production therefrom; the Company's plans at the Hope Bay project; statements about the Company's plans at the Wasamac project; statements concerning other expansion projects, recovery rates, mill throughput, optimization and projected exploration, including costs and other estimates upon which such projections are based; timing and amounts of capital expenditures, other expenditures and other cash needs, and expectations as to the funding thereof; estimates of future mineral reserves, mineral resources, mineral production and sales; the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; anticipated cost inflation and its effect on the Company's costs and results; estimates of mineral reserves and mineral resources and the effect of drill results on future mineral reserves and mineral resources; the Company's ability to obtain the necessary permits and authorizations in connection with its proposed or current exploration, development and mining operations and the anticipated timing thereof; operations at and expansion of the Kitilla mine following the decision of the Finish courts and administrative bodies; future exploration; the anticipated timing of events with respect to the Company's mine sites; the sufficiency of the Company's cash resources; the Company's plans with respect to hedging and the effectiveness of its hedging strategies; future activity with respect to the Company's unsecured revolving bank credit facility and the Term Loan Facility; the NCIB; future dividend amounts and payment dates; and anticipated trends with respect to the Company's operations, exploration and the funding thereof. Such statements reflect the Company's views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management's discussion and analysis ("MD&A") and the Company's Annual Information Form ("AIF") for the year ended December 31, 2022 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2022 ("Form 40-F") filed with the
Notes to Investors Regarding the Use of Mineral Resources
The mineral reserve and mineral resource estimates contained in this news release have been prepared in accordance with the Canadian securities administrators' (the "CSA") National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
Effective February 25, 2019, the SEC's disclosure requirements and policies for mining properties were amended to more closely align with current industry and global regulatory practices and standards, including NI 43-101. However, Canadian issuers that report in
Investors are cautioned that while the SEC now recognizes "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", investors should not assume that any part or all of the mineral deposits in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances. Investors are cautioned not to assume that any "measured mineral resources", "indicated mineral resources", or "inferred mineral resources" that the Company reports in this news release are or will be economically or legally mineable.
Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category.
The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained ounces and mineral reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news release relating to
Assumptions used for the December 31, 2022 mineral reserve and mineral resource estimates reported by the Company
Metal Price for Mineral Reserve Estimation1 | |||
Gold (US$/oz) | Silver (US$/oz) | Copper (US$/lb) | Zinc (US$/lb) |
1 Exceptions: |
Mines / Projects | Metal Price for Mineral Resource Estimation5 | |||
Gold (US$/oz) | Silver (US$/oz) | Copper (US$/lb) | Zinc (US$/lb) | |
Operating mines held by Kirkland Lake Gold before the Merger1 | - | - | - | |
Operating mines held by Agnico Eagle Mines before the Merger2 | ||||
Pipeline projects | ||||
1 Detour, Macassa, |
2 LaRonde, LZ5, Goldex, Amaruq, Meliadine, Kittila, La India, |
3 Hope Bay, Anoki-McBean, Hammond Reef, Chipriona, Tarachi, |
4 Chipriona, |
5 Exceptions: |
Exchange rates1 | |||
C$ per | Mexican peso per US | AUD per | US$ per |
AUD1.36 | |||
1 Exceptions: exchange rate of |
The above metal price assumptions are below the three-year historic gold and silver price averages (from January 1, 2020 to December 31, 2022) of approximately
Mineral reserves are reported exclusive of mineral resources. Tonnage amounts and contained metal amounts set out in this table have been rounded to the nearest thousand, so may not aggregate to equal column totals. Mineral reserves are in-situ, taking into account all mining recoveries, before mill or heap leach recoveries. Underground mineral reserves and measured and indicated mineral resources are reported within mineable shapes and include internal and external dilution. Inferred mineral resources are reported within mineable shapes and include internal dilution. Mineable shape optimization parameters may differ for mineral reserves and mineral reserves.
The mineral reserves and mineral resources tonnages reported for silver, copper and zinc are a subset of the mineral reserves and mineral resources tonnages for gold. The Company's economic parameters follow the method accepted by the SEC by setting the maximum price allowed to be no more than the lesser of the three‐year moving average and current spot price, which is a common industry standard. Given the current commodity price environment, Agnico Eagle continues to use more conservative gold and silver prices.
NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The mineral reserves presented in this news release are separate from and not a portion of the mineral resources.
Modifying factors are considerations used to convert mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors, together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the Company's material mineral projects as at June 30, 2023, including information regarding data verification, key assumptions, parameters and methods used to estimate mineral reserves and mineral resources and the risks that could materially affect the development of the mineral reserves and mineral resources required by sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d) of NI 43-101 can be found in the Company's AIF and MD&A filed on SEDAR each of which forms a part of the Company's Form 40-F filed with the SEC on EDGAR and in the following technical reports filed on SEDAR in respect of the Company's material mineral properties: NI 43-101 Technical Report of the LaRonde complex in
APPENDIX
Recent selected exploration drill results from South Zone and W Zone at Goldex
Drill hole | Location | From | To | Depth of | Estimated | Gold grade | Gold grade |
GD135-052 | South Zone - Sector 3 | 174.0 | 189.0 | 1,284 | 7.0 | 5.4 | 5.4 |
GD135-065 | South Zone - Sector 3 | 155.0 | 172.0 | 1,376 | 8.0 | 19.4 | 12.9 |
GD138-009 | South Zone - Sector 3 | 221.0 | 235.0 | 1,427 | 6.0 | 5.4 | 5.4 |
GD27-056 | W Zone | 529.5 | 574.5 | 496 | 25.0 | 1.2 | 1.2 |
and | W Zone | 702.0 | 718.5 | 575 | 9.0 | 7.3 | 7.3 |
GD27-057 | W Zone | 288.0 | 301.5 | 320 | 6.0 | 3.7 | 3.7 |
*Results from South Zone and W Zone at Goldex use capping factors of 60 g/t gold and 50 g/t gold, respectively. |
EXPLORATION DRILL COLLAR COORDINATES
Drill hole | UTM East* | UTM North* | Elevation | Azimuth | Dip | Length |
Goldex | ||||||
GD135-052 | 285873 | 5331634 | -1,056 | 69 | 19 | 213 |
GD135-065 | 285872 | 5331633 | -1,056 | 58 | -12 | 231 |
GD138-009 | 285849 | 5331512 | -1,066 | 38 | -19 | 348 |
GD27-056 | 286120 | 5330643 | 74 | 307 | -30 | 879 |
GD27-057 | 286120 | 5330643 | 74 | 311 | -20 | 633 |
Detour Lake | ||||||
DLM23-598W | 586875 | 5542118 | 303 | 173 | -66 | 1,302 |
DLM23-604 | 589309 | 5541462 | 283 | 181 | -66 | 675 |
DLM23-612 | 589227 | 5541591 | 283 | 180 | -59 | 750 |
DLM23-616 | 589267 | 5541626 | 283 | 180 | -52 | 695 |
DLM23-620 | 586560 | 5541975 | 293 | 184 | -68 | 1,152 |
DLM23-628 | 589227 | 5541550 | 283 | 179 | -58 | 675 |
DLM23-629 | 588609 | 5541481 | 285 | 178 | -58 | 687 |
DLM23-632 | 588128 | 5541642 | 287 | 177 | -56 | 801 |
DLM23-633 | 588327 | 5541610 | 287 | 178 | -54 | 675 |
DLM23-644 | 587843 | 5541810 | 286 | 175 | -61 | 792 |
DLM23-646 | 587551 | 5542302 | 291 | 181 | -64 | 1,335 |
DLM23-648 | 587965 | 5541885 | 286 | 175 | -61 | 1,002 |
DLM23-652A | 587483 | 5541875 | 286 | 173 | -59 | 255 |
DLM23-654A | 587351 | 5542074 | 289 | 175 | -66 | 951 |
DLM23-662A | 587203 | 5541839 | 301 | 177 | -73 | 1,058 |
DLM23-665 | 585309 | 5542525 | 295 | 190 | -61 | 1,458 |
DLM23-666 | 586885 | 5541753 | 297 | 175 | -59 | 801 |
DLM23-667CW | 586954 | 5542188 | 297 | 186 | -69 | 1,500 |
DLM23-670CW | 587281 | 5541950 | 298 | 171 | -64 | 1,076 |
DLM23-678 | 587003 | 5541858 | 307 | 176 | -63 | 702 |
DLM23-689 | 585993 | 5542344 | 299 | 190 | -69 | 1,260 |
DLM23-690 | 586477 | 5542144 | 296 | 185 | -68 | 1,137 |
DLM23-693 | 586159 | 5542015 | 291 | 183 | -68 | 972 |
Macassa | ||||||
53-4732 | 567236 | 5332944 | -1258 | 303 | -59 | 716 |
53-4733 | 567235 | 5332944 | -1256 | 314 | -42 | 594 |
57-1386 | 568426 | 5331284 | -1405 | 183 | 4 | 235 |
57-1387 | 568427 | 5331284 | -1405 | 191 | 14 | 317 |
58-833 | 567802 | 5332584 | -1510 | 349 | -29 | 274 |
58-839 | 567803 | 5332584 | -1510 | 336 | -22 | 259 |
KLAK-186 | 567487 | 5331787 | 108 | 199 | -29 | 155 |
KLAK-206 | 567486 | 5331787 | 108 | 192 | -36 | 171 |
Meliadine | ||||||
M22-3246 | 541050 | 6988544 | 70 | 198 | -61 | 319 |
ML425-9740-D28 | 539732 | 6988907 | -394 | 174 | -64 | 355 |
ML400-10030-D8 | 539971 | 6988460 | -29 | 183 | -63 | 418 |
ML450-9290-D9 | 539290 | 6988466 | -372 | 206 | -44 | 164 |
ML450-9290-D15 | 539291 | 6988466 | -371 | 120 | -78 | 252 |
ML400-10200-D2 | 540223 | 6988459 | -318 | 169 | -14 | 336 |
ML400-10200-D8 | 540224 | 6988459 | -318 | 162 | -33 | 375 |
M22-3477 | 543080 | 6986524 | 10,057 | 206 | -65 | 498 |
M22-3473 | 542520 | 6986738 | 10,064 | 212 | -73 | 544 |
Hope Bay | ||||||
HBBCO23-153 | 433490 | 7559620 | 406 | 112 | 10 | 417 |
HBBCO23-154 | 433555 | 7559740 | 388 | 127 | -48 | 504 |
HBD23-071 | 433113 | 7558515 | 34 | 73 | -61 | 1,068 |
HBM23-086 | 435581 | 7548394 | 26 | 240 | -58 | 992 |
HBM23-091 | 435183 | 7547960 | 26 | 84 | -66 | 666 |
HBM23-095 | 435564 | 7548420 | 26 | 231 | -54 | 871 |
HBM23-105 | 435438 | 7548956 | 26 | 240 | -58 | 912 |
Kittila | ||||||
RIE23-603 | 2558675 | 7539402 | -842 | 55 | -12 | 561 |
RIE23-607 | 2558673 | 7539402 | -842 | 43 | -13 | 286 |
ROD23-700 | 2558703 | 7537464 | -786 | 90 | -60 | 732 |
ROU23-602 | 2558712 | 7537565 | -790 | 77 | -58 | 566 |
STEC22-005 | 2558662 | 7538959 | 99 | 130 | -10 | 181 |
*Coordinate Systems: NAD 1983 UTM Zone 18N for Goldex; NAD 1983 UTM Zone 17N for Detour Lake, Macassa and AK deposit; NAD 1983 UTM Zone 14N for Meliadine; NAD 1983 UTM Zone 13N for Hope Bay; Finnish Coordinate System KKJ Zone 2 for Kittila. |
APPENDIX – FINANCIAL INFORMATION
AGNICO EAGLE MINES LIMITED | |||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022(i) | 2023 | 2022 | ||||
Operating margin(ii): | |||||||
Revenues from mining operations | $ 1,718,197 | $ 1,581,058 | $ 3,227,858 | $ 2,906,746 | |||
Production costs | 743,253 | 657,636 | 1,396,397 | 1,319,371 | |||
Total operating margin(ii) | 974,944 | 923,422 | 1,831,461 | 1,587,375 | |||
Operating margin(ii) by mine: | |||||||
LaRonde mine | 69,896 | 90,877 | 132,409 | 194,441 | |||
LaRonde Zone 5 mine | 14,795 | 7,866 | 22,093 | 24,522 | |||
Canadian | 191,681 | 104,461 | 272,464 | 183,763 | |||
Goldex mine | 45,112 | 41,656 | 85,340 | 78,774 | |||
Detour Lake mine | 204,272 | 214,841 | 396,845 | 342,899 | |||
Macassa mine | 74,334 | 74,778 | 154,234 | 98,933 | |||
Meliadine mine | 78,362 | 96,740 | 166,702 | 181,019 | |||
Meadowbank complex | 78,368 | 68,044 | 158,177 | 62,846 | |||
Hope Bay project | — | — | — | 144 | |||
132,243 | 125,442 | 264,945 | 232,298 | ||||
Kittila mine | 59,532 | 67,611 | 122,256 | 113,722 | |||
15,680 | 11,487 | 34,206 | 30,918 | ||||
Creston Mascota mine | — | 642 | — | 1,819 | |||
La | 10,669 | 18,977 | 21,790 | 41,277 | |||
Total operating margin(ii) | 974,944 | 923,422 | 1,831,461 | 1,587,375 | |||
Amortization of property, plant and mine development | 381,262 | 269,891 | 685,221 | 525,535 | |||
Revaluation gain(iv) | — | — | (1,543,414) | — | |||
Exploration, corporate and other | 127,342 | 196,680 | 277,815 | 425,318 | |||
Income before income and mining taxes | 466,340 | 456,851 | 2,411,839 | 636,522 | |||
Income and mining taxes expense | 139,519 | 166,462 | 268,127 | 227,057 | |||
Net income for the period | $ 326,821 | $ 290,389 | $ 2,143,712 | $ 409,465 | |||
Net income per share — basic | $ 0.66 | $ 0.64 | $ 4.45 | $ 0.97 | |||
Net income per share — diluted | $ 0.66 | $ 0.63 | $ 4.43 | $ 0.97 | |||
Cash flows: | |||||||
Cash provided by operating activities | $ 722,000 | $ 633,266 | $ 1,371,613 | $ 1,140,698 | |||
Cash used in investing activities | $ (450,202) | $ (394,129) | $ (1,848,947) | $ 141,523 | |||
Cash used in financing activities | $ (582,351) | $ (294,307) | $ 254,082 | $ (462,165) | |||
Realized prices: | |||||||
Gold (per ounce) | $ 1,975 | $ 1,866 | $ 1,935 | $ 1,872 | |||
Silver (per ounce) | $ 24.43 | $ 22.21 | $ 23.72 | $ 23.20 | |||
Zinc (per tonne) | $ 2,343 | $ 3,947 | $ 2,685 | $ 3,769 | |||
Copper (per tonne) | $ 7,898 | $ 8,953 | $ 8,590 | $ 9,591 | |||
AGNICO EAGLE MINES LIMITED | |||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Payable production(v): | |||||||
Gold (ounces): | |||||||
LaRonde mine | 58,635 | 70,736 | 118,168 | 158,285 | |||
LaRonde Zone 5 mine | 18,145 | 17,774 | 38,219 | 35,262 | |||
Canadian | 177,755 | 87,186 | 258,440 | 167,695 | |||
Goldex mine | 37,716 | 36,877 | 71,739 | 71,322 | |||
Detour Lake mine | 169,352 | 195,515 | 331,209 | 295,958 | |||
Macassa mine | 57,044 | 61,262 | 121,159 | 85,750 | |||
Meliadine mine | 87,682 | 97,572 | 178,149 | 178,276 | |||
Meadowbank complex | 94,775 | 96,698 | 205,885 | 156,463 | |||
81,813 | 86,065 | 168,371 | 167,892 | ||||
Kittila mine | 50,130 | 64,814 | 113,822 | 110,322 | |||
22,159 | 23,020 | 46,293 | 48,190 | ||||
Creston Mascota mine | 165 | 635 | 409 | 1,641 | |||
La | 17,833 | 20,016 | 34,154 | 41,718 | |||
Total gold (ounces): | 873,204 | 858,170 | 1,686,017 | 1,518,774 | |||
Silver (thousands of ounces): | 619 | 588 | 1,164 | 1,197 | |||
Zinc (tonnes) | 2,567 | 2,568 | 4,854 | 3,637 | |||
Copper (tonnes) | 721 | 778 | 1,251 | 1,547 | |||
AGNICO EAGLE MINES LIMITED | |||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Payable metal sold(vi): | |||||||
Gold (ounces): | |||||||
LaRonde mine | 61,920 | 61,296 | 110,082 | 132,263 | |||
LaRonde Zone 5 mine | 18,923 | 13,538 | 34,384 | 31,133 | |||
Canadian | 168,257 | 85,160 | 240,066 | 157,428 | |||
Goldex mine | 37,114 | 36,681 | 73,031 | 70,565 | |||
Detour Lake mine | 160,281 | 188,517 | 323,575 | 320,354 | |||
Macassa mine | 57,102 | 58,050 | 120,030 | 87,580 | |||
Meliadine mine | 79,153 | 97,354 | 168,739 | 185,126 | |||
Meadowbank complex | 98,980 | 93,737 | 209,005 | 142,492 | |||
Hope Bay mine | — | — | — | 98 | |||
85,500 | 93,177 | 174,500 | 195,127 | ||||
Kittila mine | 51,800 | 64,378 | 112,520 | 115,993 | |||
22,355 | 24,730 | 46,591 | 49,517 | ||||
Creston Mascota mine | — | 599 | — | 1,454 | |||
La | 17,463 | 19,306 | 33,883 | 40,315 | |||
Total gold (ounces): | 858,848 | 836,523 | 1,646,406 | 1,529,445 | |||
Silver (thousands of ounces): | 597 | 559 | 1,149 | 1,171 | |||
Zinc (tonnes) | 2,743 | 1,679 | 4,874 | 2,713 | |||
Copper (tonnes) | 713 | 783 | 1,281 | 1,549 | |||
AGNICO EAGLE MINES LIMITED | |||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Total cash costs per ounce of gold produced — co-product basis(vii): | |||||||
LaRonde mine | $ 1,046 | $ 829 | $ 1,091 | $ 744 | |||
LaRonde Zone 5 mine | 1,213 | 983 | 1,189 | 981 | |||
Canadian | 783 | 767 | 791 | 789 | |||
Goldex mine | 777 | 718 | 793 | 747 | |||
Detour Lake mine | 734 | 645 | 754 | 634 | |||
Macassa mine | 750 | 584 | 675 | 643 | |||
Meliadine mine | 1,020 | 839 | 979 | 914 | |||
Meadowbank complex | 1,164 | 999 | 1,152 | 1,311 | |||
437 | 352 | 417 | 331 | ||||
Kittila mine | 901 | 829 | 848 | 917 | |||
1,582 | 1,604 | 1,460 | 1,459 | ||||
Creston Mascota mine | — | 906 | — | 683 | |||
La | 1,408 | 959 | 1,369 | 904 | |||
Weighted average total cash costs per ounce of gold produced | $ 870 | $ 758 | $ 866 | $ 800 | |||
Total cash costs per ounce of gold produced — by-product basis(vii): | |||||||
LaRonde mine | $ 787 | $ 566 | $ 840 | $ 517 | |||
LaRonde Zone 5 mine | 1,198 | 982 | 1,175 | 978 | |||
Canadian | 772 | 753 | 779 | 772 | |||
Goldex mine | 776 | 718 | 792 | 746 | |||
Detour Lake mine | 731 | 640 | 750 | 626 | |||
Macassa mine | 747 | 582 | 672 | 641 | |||
Meliadine mine | 1,019 | 837 | 978 | 912 | |||
Meadowbank complex | 1,156 | 993 | 1,144 | 1,305 | |||
436 | 351 | 416 | 331 | ||||
Kittila mine | 899 | 828 | 847 | 915 | |||
1,282 | 1,383 | 1,196 | 1,224 | ||||
Creston Mascota mine | — | 899 | — | 598 | |||
La | 1,385 | 936 | 1,348 | 876 | |||
Weighted average total cash costs per ounce of gold produced | $ 840 | $ 726 | $ 836 | $ 763 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger | |||||||
(ii) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin and Reconciliation of Non-GAAP Financial Performance Measures - Reconciliation of Operating Margin to Net Income for a reconciliation of this measure to the recent IFRS measure | |||||||
(iii) The information set out in this table reflects the Company's | |||||||
(iv) Revaluation gain on the | |||||||
(v) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period | |||||||
(vi) The Canadian Malartic complex's payable metal sold excludes the | |||||||
(vii) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne and Note to Investors Concerning Certain Measures of Performance for more information on the Company's calculation and use of total cash cost per ounce of gold produced | |||||||
AGNICO EAGLE MINES LIMITED | |||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | |||
(thousands of | |||
(Unaudited) | |||
As at | As at | ||
June 30, 2023 | December 31, 2022 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 432,526 | $ 658,625 | |
Trade receivables | 10,141 | 8,579 | |
Inventories | 1,253,112 | 1,209,075 | |
Income taxes recoverable | 25,696 | 35,054 | |
Fair value of derivative financial instruments | 14,792 | 8,774 | |
Other current assets | 372,984 | 259,952 | |
Total current assets | 2,109,251 | 2,180,059 | |
Non-current assets: | |||
Goodwill | 4,574,777 | 2,044,123 | |
Property, plant and mine development | 21,223,554 | 18,459,400 | |
Investments | 340,974 | 332,742 | |
Deferred income and mining tax asset | 12,603 | 11,574 | |
Other assets | 1,050,493 | 466,910 | |
Total assets | $ 29,311,652 | $ 23,494,808 | |
LIABILITIES | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 806,687 | $ 672,503 | |
Share based liabilities | 11,310 | 15,148 | |
Interest payable | 8,151 | 16,496 | |
Income taxes payable | 70,870 | 4,187 | |
Current portion of long-term debt | — | 100,000 | |
Reclamation provision | 42,818 | 23,508 | |
Lease obligations | 47,964 | 36,466 | |
Fair value of derivative financial instruments | 18,156 | 78,114 | |
Total current liabilities | 1,005,956 | 946,422 | |
Non-current liabilities: | |||
Long-term debt | 1,942,019 | 1,242,070 | |
Reclamation provision | 986,813 | 878,328 | |
Lease obligations | 125,460 | 114,876 | |
Share based liabilities | 10,377 | 17,277 | |
Deferred income and mining tax liabilities | 4,928,181 | 3,981,875 | |
Other liabilities | 359,643 | 72,615 | |
Total liabilities | 9,358,449 | 7,253,463 | |
EQUITY | |||
Common shares: | |||
Outstanding — 495,442,295 common shares issued, less 578,087 shares held in trust | 18,224,982 | 16,251,221 | |
Stock options | 200,300 | 197,430 | |
Contributed surplus | 22,074 | 23,280 | |
Retained earnings (deficit) | 1,558,021 | (201,580) | |
Other reserves | (52,174) | (29,006) | |
Total equity | 19,953,203 | 16,241,345 | |
Total liabilities and equity | $ 29,311,652 | $ 23,494,808 | |
AGNICO EAGLE MINES LIMITED | |||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME | |||||||
(thousands of United States dollars, except per share amounts, IFRS basis) | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Restated(i) | Restated(i) | ||||||
REVENUES | |||||||
Revenues from mining operations | $ 1,718,197 | $ 1,581,058 | $ 3,227,858 | $ 2,906,746 | |||
COSTS, INCOME AND EXPENSES | |||||||
Production(ii) | 743,253 | 657,636 | 1,396,397 | 1,319,371 | |||
Exploration and corporate development | 54,422 | 70,352 | 108,190 | 136,194 | |||
Amortization of property, plant and mine development | 381,262 | 269,891 | 685,221 | 525,535 | |||
General and administrative | 47,312 | 49,275 | 95,520 | 116,817 | |||
Finance costs | 35,837 | 20,961 | 59,285 | 43,614 | |||
(Gain) loss on derivative financial instruments | (26,433) | 40,753 | (32,972) | 12,089 | |||
Foreign currency translation loss (gain) | 4,014 | (13,492) | 4,234 | (12,282) | |||
Care and maintenance | 9,411 | 9,257 | 20,656 | 19,713 | |||
Revaluation gain(iii) | — | — | (1,543,414) | — | |||
Other expenses | 2,779 | 19,574 | 22,902 | 109,173 | |||
Income before income and mining taxes | 466,340 | 456,851 | 2,411,839 | 636,522 | |||
Income and mining taxes expense | 139,519 | 166,462 | 268,127 | 227,057 | |||
Net income for the period | $ 326,821 | $ 290,389 | $ 2,143,712 | $ 409,465 | |||
Net income per share - basic | $ 0.66 | $ 0.64 | $ 4.45 | $ 0.97 | |||
Net income per share - diluted(iv) | $ 0.66 | $ 0.63 | $ 4.43 | $ 0.97 | |||
Adjusted net income per share - basic(iv) | $ 0.65 | $ 0.79 | $ 1.23 | $ 1.44 | |||
Adjusted net income per share - diluted(iv) | $ 0.65 | $ 0.79 | $ 1.22 | $ 1.44 | |||
Weighted average number of common shares outstanding (in thousands): | |||||||
Basic | 494,138 | 455,285 | 481,553 | 419,997 | |||
Diluted | 495,509 | 456,787 | 482,978 | 421,533 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger. | |||||||
(ii) Exclusive of amortization, which is shown separately. | |||||||
(iii) Revaluation gain on the | |||||||
(iv) Refer to Reconciliation of Adjusted Net Income to Net Income in this News Release for calculations supporting adjusted net income. | |||||||
AGNICO EAGLE MINES LIMITED | |||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(thousands of United States dollars, IFRS basis) | |||||||
(Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Restated(i) | Restated(i) | ||||||
OPERATING ACTIVITIES | |||||||
Net income for the period | $ 326,821 | $ 290,389 | 2,143,712 | $ 409,465 | |||
Add (deduct) adjusting items: | |||||||
Amortization of property, plant and mine development | 381,262 | 269,891 | 685,221 | 525,535 | |||
Revaluation gain(ii) | — | — | (1,543,414) | — | |||
Deferred income and mining taxes | 7,469 | 87,488 | 43,572 | 82,611 | |||
Unrealized (gain) loss on currency and commodity derivatives | (50,088) | 33,569 | (65,976) | 9,514 | |||
Unrealized loss on warrants | 6,959 | 21,095 | 2,296 | 20,182 | |||
Stock-based compensation | 13,380 | 6,959 | 26,527 | 29,207 | |||
Foreign currency translation loss (gain) | 4,014 | (13,492) | 4,234 | (12,282) | |||
Other | 3,207 | 10,056 | 5,651 | 7,735 | |||
Changes in non-cash working capital balances: | |||||||
Trade receivables | (2,930) | (233) | 5,465 | 38,835 | |||
Income taxes | 65,428 | (3,461) | 89,405 | (43,331) | |||
Inventories | (28,815) | (10,110) | (26,747) | 168,042 | |||
Other current assets | (99,880) | (78,258) | (88,885) | (117,865) | |||
Accounts payable and accrued liabilities | 108,128 | 32,689 | 100,859 | 25,045 | |||
Interest payable | (12,955) | (13,316) | (10,307) | (1,995) | |||
Cash provided by operating activities | 722,000 | 633,266 | 1,371,613 | 1,140,698 | |||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and mine development | (423,621) | (408,596) | (808,555) | (701,747) | |||
Yamana transaction, net of cash and cash equivalents | — | — | (1,000,617) | — | |||
Cash and cash equivalents acquired in Kirkland acquisition | — | — | — | 838,732 | |||
Purchases of equity securities and other investments | (29,427) | (18,411) | (44,164) | (31,854) | |||
Proceeds from loan repayment | — | 40,000 | — | 40,000 | |||
Other investing activities | 2,846 | (7,122) | 4,389 | (3,608) | |||
Cash (used in) provided by investing activities | (450,202) | (394,129) | (1,848,947) | 141,523 | |||
FINANCING ACTIVITIES | |||||||
Proceeds from Credit Facility | — | — | 1,000,000 | 100,000 | |||
Repayment of Credit Facility | (900,000) | — | (900,000) | (100,000) | |||
Proceeds from Term Loan Facility, net of financing costs | 598,958 | — | 598,958 | — | |||
Repayment of Senior Notes | (100,000) | (125,000) | (100,000) | (125,000) | |||
Repayment of lease obligations | (12,420) | (8,476) | (22,168) | (16,786) | |||
Disbursements to associates | (21,899) | — | (21,899) | — | |||
Dividends paid | (165,258) | (149,801) | (321,421) | (304,583) | |||
Repurchase of common shares | (1,786) | (22,258) | (16,350) | (50,147) | |||
Proceeds on exercise of stock options | 12,750 | 6,104 | 23,052 | 23,945 | |||
Common shares issued | 7,304 | 5,124 | 13,910 | 10,406 | |||
Cash (used in) provided by financing activities | (582,351) | (294,307) | 254,082 | (462,165) | |||
Effect of exchange rate changes on cash and cash equivalents | (1,566) | 30 | (2,847) | 1,013 | |||
Net (decrease) increase in cash and cash equivalents during the period | (312,119) | (55,140) | (226,099) | 821,069 | |||
Cash and cash equivalents, beginning of period | 744,645 | 1,061,995 | 658,625 | 185,786 | |||
Cash and cash equivalents, end of period | $ 432,526 | $ 1,006,855 | $ 432,526 | $ 1,006,855 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Interest paid | $ 43,437 | $ 33,219 | $ 56,488 | $ 41,422 | |||
Income and mining taxes paid | $ 74,828 | $ 84,678 | $ 139,765 | $ 188,078 | |||
Notes: |
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger. |
(ii) Revaluation gain on the |
AGNICO EAGLE MINES LIMITED | ||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES | ||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures total cash costs per ounce of gold produced and minesite costs per tonne | ||||||||||||
The following tables set out a reconciliation of total cash costs per ounce of gold produced (on both a by-product basis and co-product basis) and minesite costs per tonne to production costs, exclusive of amortization, as presented in the condensed interim consolidated statements of income in accordance with IFRS | ||||||||||||
Total Production Costs by Mine | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
(thousands of | 2023 | 2022 | 2023 | 2022 | ||||||||
LaRonde mine | $ 63,969 | $ 33,949 | $ 103,676 | $ 79,790 | ||||||||
LaRonde Zone 5 mine | 21,763 | 17,133 | 43,987 | 33,866 | ||||||||
LaRonde complex | 85,732 | 51,082 | 147,663 | 113,656 | ||||||||
Canadian | 144,190 | 56,405 | 201,481 | 113,342 | ||||||||
Goldex mine | 28,160 | 26,530 | 55,995 | 52,747 | ||||||||
Detour Lake mine | 112,796 | 137,429 | 226,818 | 257,394 | ||||||||
Macassa mine | 38,545 | 33,001 | 76,504 | 65,315 | ||||||||
Meliadine mine | 78,817 | 86,386 | 160,011 | 165,065 | ||||||||
Meadowbank complex | 117,488 | 107,373 | 247,492 | 204,084 | ||||||||
35,831 | 48,303 | 72,430 | 136,304 | |||||||||
Kittila mine | 43,336 | 53,315 | 96,631 | 102,766 | ||||||||
34,709 | 39,873 | 67,631 | 72,409 | |||||||||
Creston Mascota mine | — | 484 | — | 1,099 | ||||||||
La | 23,649 | 17,455 | 43,741 | 35,190 | ||||||||
Production costs per the condensed interim | $ 743,253 | $ 657,636 | $ 1,396,397 | $ 1,319,371 | ||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne by Mine | ||||||||||||
(thousands of | ||||||||||||
LaRonde mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 58,635 | 70,736 | 118,168 | 158,285 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 63,969 | $ 1,091 | $ 33,949 | $ 480 | $ 103,676 | $ 877 | $ 79,790 | $ 504 | ||||
Inventory adjustments(ii) | (8,971) | (153) | 20,746 | 293 | 13,534 | 115 | 31,673 | 200 | ||||
Realized gains and losses on hedges of production costs | 770 | 13 | (127) | (2) | 1,848 | 16 | (612) | (4) | ||||
Other adjustments(v) | 5,555 | 95 | 4,079 | 58 | 9,903 | 83 | 6,841 | 44 | ||||
Cash operating costs (co-product basis) | $ 61,323 | $ 1,046 | $ 58,647 | $ 829 | $ 128,961 | $ 1,091 | $ 117,692 | $ 744 | ||||
By-product metal revenues | (15,157) | (259) | (18,643) | (263) | (29,689) | (251) | (35,861) | (227) | ||||
Cash operating costs (by-product basis) | $ 46,166 | $ 787 | $ 40,004 | $ 566 | $ 99,272 | $ 840 | $ 81,831 | $ 517 | ||||
LaRonde mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 347 | 423 | 736 | 877 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 63,969 | $ 185 | $ 33,949 | $ 80 | $ 103,676 | $ 141 | $ 79,790 | $ 91 | ||||
Production costs (C$) | $ 85,861 | $ 247 | $ 43,317 | $ 103 | $ 139,434 | $ 189 | $ 101,332 | $ 115 | ||||
Inventory adjustments (C$)(ii) | (11,297) | (33) | 25,856 | 61 | 18,426 | 25 | 38,213 | 44 | ||||
Other adjustments (C$)(v) | (3,302) | (8) | (3,371) | (8) | (6,443) | (8) | (6,877) | (8) | ||||
Minesite operating costs (C$) | $ 71,262 | $ 206 | $ 65,802 | $ 156 | $ 151,417 | $ 206 | $ 132,668 | $ 151 | ||||
LaRonde Zone 5 mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 18,145 | 17,774 | 38,219 | 35,262 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 21,763 | $ 1,199 | $ 17,133 | $ 964 | $ 43,987 | $ 1,151 | $ 33,866 | $ 960 | ||||
Inventory adjustments(ii) | (784) | (43) | 350 | 20 | (261) | (7) | 815 | 24 | ||||
Realized gains and losses on hedges of production costs | 257 | 14 | (30) | (2) | 616 | 16 | (143) | (4) | ||||
Other adjustments(v) | 775 | 43 | 19 | 1 | 1,111 | 29 | 49 | 1 | ||||
Cash operating costs (co-product basis) | $ 22,011 | $ 1,213 | $ 17,472 | $ 983 | $ 45,453 | $ 1,189 | $ 34,587 | $ 981 | ||||
By-product metal revenues | (271) | (15) | (28) | (1) | (546) | (14) | (119) | (3) | ||||
Cash operating costs (by-product basis) | $ 21,740 | $ 1,198 | $ 17,444 | $ 982 | $ 44,907 | $ 1,175 | $ 34,468 | $ 978 | ||||
LaRonde Zone 5 mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 313 | 291 | 632 | 570 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 21,763 | $ 70 | $ 17,133 | $ 59 | $ 43,987 | $ 70 | $ 33,866 | $ 59 | ||||
Production costs (C$) | $ 29,277 | $ 94 | $ 21,854 | $ 75 | $ 59,265 | $ 94 | $ 43,027 | $ 75 | ||||
Inventory adjustments (C$)(ii) | (1,147) | (4) | 523 | 2 | (409) | (1) | 1,099 | 2 | ||||
Minesite operating costs (C$) | $ 28,130 | $ 90 | $ 22,377 | $ 77 | $ 58,856 | $ 93 | $ 44,126 | $ 77 | ||||
LaRonde complex Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 76,780 | 88,510 | 156,387 | 193,547 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 85,732 | $ 1,117 | $ 51,082 | $ 577 | $ 147,663 | $ 944 | $ 113,656 | $ 587 | ||||
Inventory adjustments(ii) | (9,755) | (127) | 21,096 | 238 | 13,273 | 85 | 32,488 | 168 | ||||
Realized gains and losses on hedges of production costs | 1,027 | 13 | (157) | (2) | 2,464 | 16 | (755) | (4) | ||||
Other adjustments(v) | 6,330 | 82 | 4,098 | 47 | 11,014 | 70 | 6,890 | 36 | ||||
Cash operating costs (co-product basis) | $ 83,334 | $ 1,085 | $ 76,119 | $ 860 | $ 174,414 | $ 1,115 | $ 152,279 | $ 787 | ||||
By-product metal revenues | (15,428) | (201) | (18,671) | (211) | (30,235) | (193) | (35,980) | (186) | ||||
Cash operating costs (by-product basis) | $ 67,906 | $ 884 | $ 57,448 | $ 649 | $ 144,179 | $ 922 | $ 116,299 | $ 601 | ||||
LaRonde complex Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 660 | 714 | 1,368 | 1,447 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 85,732 | $ 130 | $ 51,082 | $ 72 | $ 147,663 | $ 108 | $ 113,656 | $ 79 | ||||
Production costs (C$) | $ 115,138 | $ 174 | $ 65,171 | $ 92 | $ 198,699 | $ 145 | $ 144,359 | $ 100 | ||||
Inventory adjustments (C$)(ii) | (12,444) | (19) | 26,379 | 37 | 18,017 | 13 | 39,312 | 27 | ||||
Other adjustments (C$)(v) | (3,302) | (4) | (3,371) | (5) | (6,443) | (4) | (6,877) | (5) | ||||
Minesite operating costs (C$) | $ 99,392 | $ 151 | $ 88,179 | $ 124 | $ 210,273 | $ 154 | $ 176,794 | $ 122 | ||||
Canadian Per Ounce of Gold Produced(i) | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 177,755 | 87,186 | 258,440 | 167,695 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 144,190 | $ 811 | $ 56,405 | $ 647 | $ 201,481 | $ 780 | $ 113,342 | $ 676 | ||||
Inventory adjustments(ii) | 43 | — | 2,139 | 25 | 538 | 2 | 2,867 | 17 | ||||
Purchase price allocation to inventory(iv) | (22,821) | (128) | — | — | (22,821) | (88) | — | — | ||||
Other adjustments(v) | 17,835 | 100 | 8,332 | 95 | 25,217 | 97 | 16,114 | 96 | ||||
Cash operating costs (co-product basis) | $ 139,247 | $ 783 | $ 66,876 | $ 767 | $ 204,415 | $ 791 | $ 132,323 | $ 789 | ||||
By-product metal revenues | (2,069) | (11) | (1,243) | (14) | (3,207) | (12) | (2,905) | (17) | ||||
Cash operating costs (by-product basis) | $ 137,178 | $ 772 | $ 65,633 | $ 753 | $ 201,208 | $ 779 | $ 129,418 | $ 772 | ||||
Canadian Per Tonne(i) | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 4,882 | 2,399 | 7,144 | 4,811 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 144,190 | $ 30 | $ 56,405 | $ 24 | $ 201,481 | $ 28 | $ 113,342 | $ 24 | ||||
Production costs (C$) | $ 194,997 | $ 40 | $ 71,080 | $ 30 | $ 271,662 | $ 38 | $ 142,709 | $ 30 | ||||
Inventory adjustments (C$)(ii) | 511 | — | 2,664 | 1 | 1,251 | — | 3,674 | 1 | ||||
Purchase price allocation to inventory (C$)(iv) | (30,651) | (6) | — | — | (30,651) | (4) | — | — | ||||
Other adjustments (C$)(v) | 23,599 | 5 | 10,581 | 4 | 33,424 | 5 | 20,228 | 4 | ||||
Minesite operating costs (C$) | $ 188,456 | $ 39 | $ 84,325 | $ 35 | $ 275,686 | $ 39 | $ 166,611 | $ 35 | ||||
Goldex mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 37,716 | 36,877 | 71,739 | 71,322 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 28,160 | $ 747 | $ 26,530 | $ 719 | $ 55,995 | $ 781 | $ 52,747 | $ 740 | ||||
Inventory adjustments(ii) | 582 | 16 | (22) | (1) | (455) | (6) | 688 | 10 | ||||
Realized gains and losses on hedges of production costs | 505 | 13 | (56) | (1) | 1,212 | 17 | (271) | (5) | ||||
Other adjustments(v) | 40 | 1 | 41 | 1 | 102 | 1 | 95 | 2 | ||||
Cash operating costs (co-product basis) | $ 29,287 | $ 777 | $ 26,493 | $ 718 | $ 56,854 | $ 793 | $ 53,259 | $ 747 | ||||
By-product metal revenues | (11) | (1) | (5) | — | (25) | (1) | (21) | (1) | ||||
Cash operating costs (by-product basis) | $ 29,276 | $ 776 | $ 26,488 | $ 718 | $ 56,829 | $ 792 | $ 53,238 | $ 746 | ||||
Goldex mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 761 | 738 | 1,459 | 1,482 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 28,160 | $ 37 | $ 26,530 | $ 36 | $ 55,995 | $ 38 | $ 52,747 | $ 36 | ||||
Production costs (C$) | $ 37,859 | $ 50 | $ 33,951 | $ 46 | $ 75,486 | $ 52 | $ 67,171 | $ 45 | ||||
Inventory adjustments (C$)(ii) | 730 | 1 | 23 | — | (660) | (1) | 915 | 1 | ||||
Minesite operating costs (C$) | $ 38,589 | $ 51 | $ 33,974 | $ 46 | $ 74,826 | $ 51 | $ 68,086 | $ 46 | ||||
Detour Lake mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 169,352 | 195,515 | 331,209 | 295,958 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 112,796 | $ 666 | $ 137,429 | $ 703 | $ 226,818 | $ 685 | $ 257,394 | $ 870 | ||||
Inventory adjustments(ii) | (474) | (3) | 3,988 | 20 | (168) | — | (12,633) | (43) | ||||
Realized gains and losses on hedges of production costs | 2,541 | 15 | — | — | 6,095 | 18 | — | — | ||||
Purchase price allocation to inventory(iv) | — | — | (22,690) | (116) | — | — | (68,837) | (233) | ||||
Other adjustments(v) | 9,410 | 56 | 7,304 | 38 | 16,985 | 51 | 11,589 | 40 | ||||
Cash operating costs (co-product basis) | $ 124,273 | $ 734 | $ 126,031 | $ 645 | $ 249,730 | $ 754 | $ 187,513 | $ 634 | ||||
By-product metal revenues | (505) | (3) | (1,015) | (5) | (1,187) | (4) | (2,220) | (8) | ||||
Cash operating costs (by-product basis) | $ 123,768 | $ 731 | $ 125,016 | $ 640 | $ 248,543 | $ 750 | $ 185,293 | $ 626 | ||||
Detour Lake mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 6,800 | 6,519 | 13,197 | 9,789 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 112,796 | $ 17 | $ 137,429 | $ 21 | $ 226,818 | $ 17 | $ 257,394 | $ 26 | ||||
Production costs (C$) | $ 151,645 | $ 22 | $ 175,421 | $ 27 | $ 305,553 | $ 23 | $ 327,239 | $ 33 | ||||
Inventory adjustments (C$)(ii) | 12,357 | 2 | 5,205 | 1 | 12,872 | 1 | (15,867) | (2) | ||||
Purchase price allocation to inventory(C$)(iv) | — | — | (29,108) | (5) | — | — | (87,508) | (9) | ||||
Other adjustments (C$)(v) | 11,381 | 2 | 9,349 | 1 | 20,146 | 2 | 14,749 | 2 | ||||
Minesite operating costs (C$) | $ 175,383 | $ 26 | $ 160,867 | $ 24 | $ 338,571 | $ 26 | $ 238,613 | $ 24 | ||||
Macassa mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 57,044 | 61,262 | 121,159 | 85,750 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 38,545 | $ 676 | $ 33,001 | $ 539 | $ 76,504 | $ 631 | $ 65,315 | $ 762 | ||||
Inventory adjustments(ii) | (178) | (3) | 953 | 16 | (1,473) | (11) | (1,147) | (13) | ||||
Realized gains and losses on hedges of production costs | 812 | 14 | — | — | 1,949 | 16 | — | — | ||||
Purchase price allocation to inventory(iv) | — | — | 501 | 8 | — | — | (10,326) | (120) | ||||
Other adjustments(v) | 3,613 | 63 | 1,332 | 21 | 4,757 | 39 | 1,288 | 14 | ||||
Cash operating costs (co-product basis) | $ 42,792 | $ 750 | $ 35,787 | $ 584 | $ 81,737 | $ 675 | $ 55,130 | $ 643 | ||||
By-product metal revenues | (168) | (3) | (114) | (2) | (376) | (3) | (187) | (2) | ||||
Cash operating costs (by-product basis) | $ 42,624 | $ 747 | $ 35,673 | $ 582 | $ 81,361 | $ 672 | $ 54,943 | $ 641 | ||||
Macassa mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 112 | 88 | 199 | 135 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 38,545 | $ 344 | $ 33,001 | $ 374 | $ 76,504 | $ 384 | $ 65,315 | $ 483 | ||||
Production costs (C$) | $ 51,994 | $ 464 | $ 42,211 | $ 479 | $ 103,236 | $ 519 | $ 83,041 | $ 615 | ||||
Inventory adjustments (C$)(ii) | (359) | (3) | 1,278 | 14 | (2,076) | (10) | (1,366) | (10) | ||||
Purchase price allocation to inventory(C$)(iv) | — | — | 450 | 5 | — | — | (13,128) | (97) | ||||
Other adjustments (C$)(v) | 4,775 | 42 | 1,725 | 21 | 6,291 | 30 | 1,657 | 12 | ||||
Minesite operating costs (C$) | $ 56,410 | $ 503 | $ 45,664 | $ 519 | $ 107,451 | $ 539 | $ 70,204 | $ 520 | ||||
Meliadine mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 87,682 | 97,572 | 178,149 | 178,276 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 78,817 | $ 899 | $ 86,386 | $ 885 | $ 160,011 | $ 898 | $ 165,065 | $ 926 | ||||
Inventory adjustments(ii) | 11,228 | 128 | (3,671) | (38) | 14,852 | 83 | (39) | — | ||||
Realized gains and losses on hedges of production costs | (451) | (5) | (884) | (9) | (363) | (2) | (2,195) | (13) | ||||
Other adjustments(v) | (118) | (2) | 68 | 1 | (13) | — | 163 | 1 | ||||
Cash operating costs (co-product basis) | $ 89,476 | $ 1,020 | $ 81,899 | $ 839 | $ 174,487 | $ 979 | $ 162,994 | $ 914 | ||||
By-product metal revenues | (139) | (1) | (188) | (2) | (339) | (1) | (405) | (2) | ||||
Cash operating costs (by-product basis) | $ 89,337 | $ 1,019 | $ 81,711 | $ 837 | $ 174,148 | $ 978 | $ 162,589 | $ 912 | ||||
Meliadine mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 461 | 449 | 937 | 881 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 78,817 | $ 171 | $ 86,386 | $ 192 | $ 160,011 | $ 171 | $ 165,065 | $ 187 | ||||
Production costs (C$) | $ 105,834 | $ 230 | $ 109,488 | $ 244 | $ 214,715 | $ 229 | $ 208,925 | $ 237 | ||||
Inventory adjustments (C$)(ii) | 14,556 | 31 | (4,241) | (10) | 19,606 | 21 | 284 | — | ||||
Minesite operating costs (C$) | $ 120,390 | $ 261 | $ 105,247 | $ 234 | $ 234,321 | $ 250 | $ 209,209 | $ 237 | ||||
Meadowbank complex Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 94,775 | 96,698 | 205,885 | 156,463 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 117,488 | $ 1,240 | $ 107,373 | $ 1,110 | $ 247,492 | $ 1,202 | $ 204,084 | $ 1,304 | ||||
Inventory adjustments(ii) | (5,048) | (54) | (9,132) | (94) | (6,702) | (32) | 6,071 | 39 | ||||
Realized gains and losses on hedges of production costs | (2,118) | (22) | (1,631) | (17) | (3,617) | (18) | (3,674) | (23) | ||||
Operational care & maintenance due to COVID-19(iii) | — | — | — | — | — | — | (1,436) | (9) | ||||
Other adjustments(v) | 4 | — | (26) | — | (51) | — | 40 | — | ||||
Cash operating costs (co-product basis) | $ 110,326 | $ 1,164 | $ 96,584 | $ 999 | $ 237,122 | $ 1,152 | $ 205,085 | $ 1,311 | ||||
By-product metal revenues | (723) | (8) | (587) | (6) | (1,548) | (8) | (882) | (6) | ||||
Cash operating costs (by-product basis) | $ 109,603 | $ 1,156 | $ 95,997 | $ 993 | $ 235,574 | $ 1,144 | $ 204,203 | $ 1,305 | ||||
Meadowbank complex Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 845 | 930 | 1,828 | 1,785 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 117,488 | $ 139 | $ 107,373 | $ 116 | $ 247,492 | $ 135 | $ 204,084 | $ 114 | ||||
Production costs (C$) | $ 157,407 | $ 186 | $ 136,663 | $ 147 | $ 330,385 | $ 181 | $ 259,128 | $ 145 | ||||
Inventory adjustments (C$)(ii) | (6,632) | (8) | (10,911) | (12) | (8,858) | (5) | 7,897 | 5 | ||||
Operational care and maintenance due to COVID-19 (C$)(iii) | — | — | — | — | — | — | (1,793) | (1) | ||||
Minesite operating costs (C$) | $ 150,775 | $ 178 | $ 125,752 | $ 135 | $ 321,527 | $ 176 | $ 265,232 | $ 149 | ||||
Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 81,813 | 86,065 | 168,371 | 167,892 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 35,831 | $ 438 | $ 48,303 | $ 561 | $ 72,430 | $ 430 | $ 136,304 | $ 812 | ||||
Inventory adjustments(ii) | (522) | (6) | (970) | (12) | (2,885) | (17) | (6,809) | (41) | ||||
Realized gains and losses on hedges of production costs | 489 | 6 | — | — | 677 | 4 | — | — | ||||
Purchase price allocation to inventory(iv) | — | — | (16,997) | (197) | — | — | (73,674) | (439) | ||||
Other adjustments(v) | (7) | (1) | — | — | 39 | — | — | — | ||||
Cash operating costs (co-product basis) | $ 35,791 | $ 437 | $ 30,336 | $ 352 | $ 70,261 | $ 417 | $ 55,821 | $ 332 | ||||
By-product metal revenues | (121) | (1) | (125) | (1) | (278) | (1) | (313) | (1) | ||||
Cash operating costs (by-product basis) | $ 35,670 | $ 436 | $ 30,211 | $ 351 | $ 69,983 | $ 416 | $ 55,508 | $ 331 | ||||
Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 176 | 122 | 324 | 213 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 35,831 | $ 204 | $ 48,303 | $ 396 | $ 72,430 | $ 224 | $ 136,304 | $ 641 | ||||
Production costs (A$) | A$ 54,280 | A$ 308 | A | A$ 597 | A$ 108,462 | A$ 335 | A$ 189,040 | A$ 890 | ||||
Inventory adjustments (A$)(ii) | (756) | (4) | (1,204) | (9) | (4,357) | (14) | (9,409) | (43) | ||||
Purchase price allocation to inventory(A$)(iv) | — | — | (26,678) | (218) | — | — | (102,178) | (478) | ||||
Minesite operating costs (A$) | A$ 53,524 | A$ 304 | A | A$ 370 | A$ 104,105 | A$ 321 | A$ 77,453 | A$ 369 | ||||
Kittila mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 50,130 | 64,814 | 113,822 | 110,322 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 43,336 | $ 864 | $ 53,315 | $ 823 | $ 96,631 | $ 849 | $ 102,766 | $ 932 | ||||
Inventory adjustments(ii) | 2,784 | 56 | (1,164) | (19) | 2,744 | 24 | (3,955) | (36) | ||||
Realized gains and losses on hedges of production costs | (925) | (18) | 1,542 | 24 | (1,558) | (14) | 2,220 | 20 | ||||
Other adjustments(v) | (50) | (1) | 39 | 1 | (1,273) | (11) | 93 | 1 | ||||
Cash operating costs (co-product basis) | $ 45,145 | $ 901 | $ 53,732 | $ 829 | $ 96,544 | $ 848 | $ 101,124 | $ 917 | ||||
By-product metal revenues | (93) | (2) | (78) | (1) | (162) | (1) | (167) | (2) | ||||
Cash operating costs (by-product basis) | $ 45,052 | $ 899 | $ 53,654 | $ 828 | $ 96,382 | $ 847 | $ 100,957 | $ 915 | ||||
Kittila mine Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore milled (thousands of tonnes) | 417 | 556 | 913 | 1,017 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 43,336 | $ 104 | $ 53,315 | $ 96 | $ 96,631 | $ 106 | $ 102,766 | $ 101 | ||||
Production costs (€) | € 42,251 | € 101 | € 49,550 | € 89 | € 91,002 | € 100 | € 93,458 | € 92 | ||||
Inventory adjustments (€)(ii) | 946 | 3 | (655) | (1) | 832 | 1 | (2,929) | (3) | ||||
Minesite operating costs (€) | € 43,197 | € 104 | € 48,895 | € 88 | € 91,834 | € 101 | € 90,529 | € 89 | ||||
Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 22,159 | 23,020 | 46,293 | 48,190 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 34,709 | $ 1,566 | $ 39,873 | $ 1,732 | $ 67,631 | $ 1,461 | $ 72,409 | $ 1,503 | ||||
Inventory adjustments(ii) | 761 | 34 | (2,955) | (128) | 513 | 11 | (2,156) | (45) | ||||
Realized gains and losses on hedges of production costs | (690) | (31) | (313) | (14) | (1,143) | (25) | (547) | (11) | ||||
Other adjustments(v) | 286 | 13 | 322 | 14 | 578 | 13 | 625 | 12 | ||||
Cash operating costs (co-product basis) | $ 35,066 | $ 1,582 | $ 36,927 | $ 1,604 | $ 67,579 | $ 1,460 | $ 70,331 | $ 1,459 | ||||
By-product metal revenues | (6,653) | (300) | (5,082) | (221) | (12,227) | (264) | (11,345) | (235) | ||||
Cash operating costs (by-product basis) | $ 28,413 | $ 1,282 | $ 31,845 | $ 1,383 | $ 55,352 | $ 1,196 | $ 58,986 | $ 1,224 | ||||
Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore processed (thousands of tonnes) | 401 | 366 | 765 | 750 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 34,709 | $ 87 | $ 39,873 | $ 109 | $ 67,631 | $ 88 | $ 72,409 | $ 97 | ||||
Inventory adjustments(ii) | 1,905 | 3 | (2,955) | (8) | 1,657 | 3 | (2,156) | (3) | ||||
Minesite operating costs | $ 36,614 | $ 90 | $ 36,918 | $ 101 | $ 69,288 | $ 91 | $ 70,253 | $ 94 | ||||
Creston Mascota mine Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 165 | 635 | 409 | 1,641 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ — | $ — | $ 484 | $ 762 | $ — | $ — | $ 1,099 | $ 670 | ||||
Inventory adjustments(ii) | — | — | 60 | 95 | — | — | (27) | (16) | ||||
Other adjustments(v) | — | — | 30 | 49 | — | — | 48 | 29 | ||||
Cash operating costs (co-product basis) | $ — | $ — | $ 574 | $ 906 | $ — | $ — | $ 1,120 | $ 683 | ||||
By-product metal revenues | — | — | (5) | (7) | — | — | (140) | (85) | ||||
Cash operating costs (by-product basis) | $ — | $ — | $ 569 | $ 899 | $ — | $ — | $ 980 | $ 598 | ||||
Creston Mascota mine Per Tonne(vi) | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore processed (thousands of tonnes) | — | — | — | — | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ — | $ — | $ 484 | $ — | $ — | $ — | $ 1,099 | $ — | ||||
Inventory adjustments(ii) | — | — | 60 | — | — | — | (27) | — | ||||
Other adjustments(v) | — | — | (544) | — | — | — | (1,072) | — | ||||
Minesite operating costs | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | ||||
La Per Ounce of Gold Produced | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Gold production (ounces) | 17,833 | 20,016 | 34,154 | 41,718 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 23,649 | $ 1,326 | $ 17,455 | $ 872 | $ 43,741 | $ 1,281 | $ 35,190 | $ 844 | ||||
Inventory adjustments(ii) | 1,318 | 74 | 1,564 | 78 | 2,766 | 80 | 2,132 | 51 | ||||
Other adjustments(v) | 134 | 8 | 177 | 9 | 263 | 8 | 373 | 9 | ||||
Cash operating costs (co-product basis) | $ 25,101 | $ 1,408 | $ 19,196 | $ 959 | $ 46,770 | $ 1,369 | $ 37,695 | $ 904 | ||||
By-product metal revenues | (407) | (23) | (451) | (23) | (722) | (21) | (1,159) | (28) | ||||
Cash operating costs (by-product basis) | $ 24,694 | $ 1,385 | $ 18,745 | $ 936 | $ 46,048 | $ 1,348 | $ 36,536 | $ 876 | ||||
La Per Tonne | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended | ||||||||
Tonnes of ore processed (thousands of tonnes) | 880 | 1,356 | 1,540 | 2,919 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 23,649 | $ 27 | $ 17,455 | $ 13 | $ 43,741 | $ 28 | $ 35,190 | $ 12 | ||||
Inventory adjustments(ii) | 1,318 | 1 | 1,564 | 1 | 2,766 | 2 | 2,132 | 1 | ||||
Minesite operating costs | $ 24,967 | $ 28 | $ 19,019 | $ 14 | $ 46,507 | $ 30 | $ 37,322 | $ 13 | ||||
Notes: | ||||||||||||
(i) The information set out in this table reflects the Company's | ||||||||||||
(ii) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue | ||||||||||||
(iii) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company's mine sites in response to the COVID-19 pandemic and includes primarily payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working during the period of reduced or suspended operations. These expenses also include payroll costs of employees who could not work following the period of temporary suspension or reduced operations due to the Company's effort to prevent or curtail community transmission of COVID-19. These costs were previously classified as "other adjustments" and have now been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impact of such events on the total cash costs per ounce and minesite cost per tonne | ||||||||||||
(iv) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa, and | ||||||||||||
(v) Other adjustments consists of costs associated with a | ||||||||||||
(vi) The Creston Mascota mine's cost calculations per tonne for the three and six months ended June 30, 2022 excludes approximately | ||||||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce Produced(vii) and All-in Sustaining Costs per Ounce of Gold Produced(vii) | |||||||
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measure all-in sustaining costs per ounce of gold produced | |||||||
The following tables set out a reconciliation of production costs to the Company's use of the non-GAAP measure all-in sustaining costs per ounce of gold produced for the six months ended June 30, 2023 and June 30, 2022 on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(United States dollars per ounce of gold produced, except where noted) | 2023 | 2022 | 2023 | 2022 | |||
Production costs per the condensed interim consolidated statements of income (thousands of United States dollars) | $ 743,253 | $ 657,636 | $ 1,396,397 | $ 1,319,371 | |||
Gold production (ounces) | 873,204 | 858,170 | 1,686,017 | 1,518,774 | |||
Production costs per ounce of adjusted gold production | $ 851 | $ 766 | $ 828 | $ 869 | |||
Adjustments: | |||||||
Inventory adjustments(i) | 1 | 14 | 14 | 12 | |||
Purchase price allocation to inventory(ii) | (26) | (46) | (13) | (101) | |||
Realized gains and losses on hedges of production costs | 1 | (2) | 3 | (3) | |||
Operational care and maintenance costs due to COVID-19(iii) | — | — | — | (1) | |||
Other(iv) | 43 | 26 | 34 | 24 | |||
Total cash costs per ounce of gold produced (co-product basis)(v) | $ 870 | $ 758 | $ 866 | $ 800 | |||
By-product metal revenues | (30) | (32) | (30) | (37) | |||
Total cash costs per ounce of gold produced (by-product basis)(v) | $ 840 | $ 726 | $ 836 | $ 763 | |||
Adjustments: | |||||||
Sustaining capital expenditures (including capitalized exploration) | 237 | 231 | 226 | 197 | |||
General and administrative expenses (including stock option expense) | 54 | 57 | 57 | 77 | |||
Non-cash reclamation provision and sustaining leases(vi) | 19 | 12 | 19 | 14 | |||
All-in sustaining costs per ounce of gold produced (by-product basis) | $ 1,150 | $ 1,026 | $ 1,138 | $ 1,051 | |||
By-product metal revenues | 30 | 32 | 30 | 37 | |||
All-in sustaining costs per ounce of gold produced (co-product basis) | $ 1,180 | $ 1,058 | $ 1,168 | $ 1,088 | |||
Notes: | |||||||
(i) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue | |||||||
(ii) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa and | |||||||
(iii) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company's mine sites in response to the COVID-19 pandemic which primarily includes payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working during the period of reduced or suspended operations. These costs were previously classified as "other adjustments" and, as of 2022, have been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impact of such events on the total cash costs per ounce and minesite cost per tonne | |||||||
(iv) Other adjustments consists of costs associated with a | |||||||
(v) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne for more information on the Company's use of total cash cost per ounce of gold produced | |||||||
(vi) Sustaining leases are lease payments related to sustaining assets | |||||||
Reconciliation of Operating Margin(i) to Net Income | |||||
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's disclosure of the non-GAAP measure operating margin | |||||
The following table sets out a reconciliation of net income to operating margin for the six months ended June 30, 2023 and June 30, 2022 | |||||
Three Months Ended June 30, 2023 | |||||
Revenues from | |||||
Mining | Production | Operating | |||
Operations | Costs | Margin | |||
LaRonde mine | $ 133,865 | $ (63,969) | $ 69,896 | ||
LaRonde Zone 5 mine | 36,558 | (21,763) | 14,795 | ||
Canadian | 335,871 | (144,190) | 191,681 | ||
Goldex mine | 73,272 | (28,160) | 45,112 | ||
Detour Lake mine | 317,068 | (112,796) | 204,272 | ||
Macassa mine | 112,879 | (38,545) | 74,334 | ||
Meliadine mine | 157,179 | (78,817) | 78,362 | ||
Meadowbank complex | 195,856 | (117,488) | 78,368 | ||
168,074 | (35,831) | 132,243 | |||
Kittila mine | 102,868 | (43,336) | 59,532 | ||
50,389 | (34,709) | 15,680 | |||
La | 34,318 | (23,649) | 10,669 | ||
Segment totals | $ 1,718,197 | $ (743,253) | $ 974,944 | ||
Corporate and other: | |||||
Exploration and corporate development | 54,422 | ||||
Amortization of property, plant, and mine development | 381,262 | ||||
General and administrative | 47,312 | ||||
Finance costs | 35,837 | ||||
Gain on derivative financial instruments | (26,433) | ||||
Environmental remediation | (1,420) | ||||
Foreign currency translation loss | 4,014 | ||||
Care and maintenance | 9,411 | ||||
Other expenses | 4,199 | ||||
Income and mining taxes expense | 139,519 | ||||
Net income per condensed interim consolidated statements of income | $ 326,821 | ||||
Notes: | |||||
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of operating margin | |||||
(ii) The information set out in this table reflects the Company's | |||||
Reconciliation of Operating Margin(i) to Net Income | |||||
Six Months Ended June 30, 2023 | |||||
Revenues from | |||||
Mining | Production | Operating | |||
Operations | Costs | Margin | |||
LaRonde mine | $ 236,085 | $ (103,676) | $ 132,409 | ||
LaRonde Zone 5 mine | 66,080 | (43,987) | 22,093 | ||
Canadian | 473,945 | (201,481) | 272,464 | ||
Goldex mine | 141,335 | (55,995) | 85,340 | ||
Detour Lake mine | 623,663 | (226,818) | 396,845 | ||
Macassa mine | 230,738 | (76,504) | 154,234 | ||
Meliadine mine | 326,713 | (160,011) | 166,702 | ||
Meadowbank complex | 405,669 | (247,492) | 158,177 | ||
337,375 | (72,430) | 264,945 | |||
Kittila mine | 218,887 | (96,631) | 122,256 | ||
101,837 | (67,631) | 34,206 | |||
La | 65,531 | (43,741) | 21,790 | ||
Segment totals | $ 3,227,858 | $ (1,396,397) | $ 1,831,461 | ||
Corporate and other: | |||||
Exploration and corporate development | 108,190 | ||||
Amortization of property, plant, and mine development | 685,221 | ||||
General and administrative | 95,520 | ||||
Finance costs | 59,285 | ||||
Gain on derivative financial instruments | (32,972) | ||||
Environmental remediation | (1,977) | ||||
Foreign currency translation loss | 4,234 | ||||
Care and maintenance | 20,656 | ||||
Revaluation gain | (1,543,414) | ||||
Other expenses | 24,879 | ||||
Income and mining taxes expense | 268,127 | ||||
Net income per condensed interim consolidated statements of income | $ 2,143,712 | ||||
Notes: | |||||
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin | |||||
(ii) The information set out in this table reflects the Company's | |||||
Reconciliation of Operating Margin(i) to Net Income | |||||
Three Months Ended June 30, 2022(ii) | |||||
Revenues from | |||||
Mining | Production | Operating | |||
Operations | Costs | Margin | |||
LaRonde mine | $ 124,826 | $ (33,949) | $ 90,877 | ||
LaRonde Zone 5 mine | 24,999 | (17,133) | 7,866 | ||
Canadian | 160,866 | (56,405) | 104,461 | ||
Goldex mine | 68,186 | (26,530) | 41,656 | ||
Detour Lake mine | 352,270 | (137,429) | 214,841 | ||
Macassa mine | 107,779 | (33,001) | 74,778 | ||
Meliadine mine | 183,126 | (86,386) | 96,740 | ||
Meadowbank complex | 175,417 | (107,373) | 68,044 | ||
173,745 | (48,303) | 125,442 | |||
Kittila mine | 120,926 | (53,315) | 67,611 | ||
51,360 | (39,873) | 11,487 | |||
Creston Mascota mine | 1,126 | (484) | 642 | ||
La | 36,432 | (17,455) | 18,977 | ||
Segment totals | $ 1,581,058 | $ (657,636) | $ 923,422 | ||
Corporate and other: | |||||
Exploration and corporate development | 70,352 | ||||
Amortization of property, plant, and mine development | 269,891 | ||||
General and administrative | 49,275 | ||||
Finance costs | 20,961 | ||||
Loss on derivative financial instruments | 40,753 | ||||
Environmental remediation | (319) | ||||
Foreign currency translation gain | (13,492) | ||||
Care and maintenance | 9,257 | ||||
Other expenses | 19,893 | ||||
Income and mining taxes expense | 166,462 | ||||
Net income per condensed interim consolidated statements of income | $ 290,389 | ||||
Notes: | |||||
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin | |||||
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger | |||||
(iii) The information set out in this table reflects the Company's | |||||
Reconciliation of Operating Margin(i) to Net Income | |||||
Six Months Ended June 30, 2022(ii) | |||||
Revenues from | |||||
Mining | Production | Operating | |||
Operations | Costs | Margin | |||
LaRonde mine | $ 274,231 | $ (79,790) | $ 194,441 | ||
LaRonde Zone 5 mine | 58,388 | (33,866) | 24,522 | ||
Canadian | 297,105 | (113,342) | 183,763 | ||
Goldex mine | 131,521 | (52,747) | 78,774 | ||
Detour Lake mine | 600,293 | (257,394) | 342,899 | ||
Macassa mine | 164,248 | (65,315) | 98,933 | ||
Meliadine mine | 346,084 | (165,065) | 181,019 | ||
Meadowbank complex | 266,930 | (204,084) | 62,846 | ||
Hope Bay mine | 144 | — | 144 | ||
368,602 | (136,304) | 232,298 | |||
Kittila mine | 216,488 | (102,766) | 113,722 | ||
103,327 | (72,409) | 30,918 | |||
Creston Mascota mine | 2,918 | (1,099) | 1,819 | ||
La | 76,467 | (35,190) | 41,277 | ||
Segment totals | $ 2,906,746 | $ (1,319,371) | $ 1,587,375 | ||
Corporate and other: | |||||
Exploration and corporate development | 136,194 | ||||
Amortization of property, plant, and mine development | 525,535 | ||||
General and administrative | 116,817 | ||||
Finance costs | 43,614 | ||||
Loss on derivative financial instruments | 12,089 | ||||
Environmental remediation | (2,618) | ||||
Foreign currency translation gain | (12,282) | ||||
Care and maintenance | 19,713 | ||||
Other expenses | 111,791 | ||||
Income and mining taxes expense | 227,057 | ||||
Net income per condensed interim consolidated statements of income | $ 409,465 | ||||
Notes: | |||||
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin | |||||
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger | |||||
(iii) The information set out in this table reflects the Company's | |||||
Reconciliation of Sustaining Capital Expenditures(i) and Development Capital Expenditures(i) to the Consolidated Statements of Cash Flows
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Sustaining capital expenditures(i)(ii) | $ 206,914 | $ 198,024 | $ 381,545 | $ 299,750 | |||
Development capital expenditures(i)(ii) | 209,133 | 203,546 | 376,236 | 351,905 | |||
Total Capital Expenditures | $ 416,047 | $ 401,570 | $ 757,781 | $ 651,655 | |||
Working capital adjustments | 7,574 | 7,026 | 50,774 | 50,092 | |||
Additions to property, plant and mine development per the condensed | $ 423,621 | $ 408,596 | $ 808,555 | $ 701,747 | |||
Note: | |||||||
(i) Sustaining capital expenditures and development capital expenditures are not recognized measures under IFRS and this data may not be comparable to other gold producers. See Note on Certain Measures of Performance for more information on the Company's use of the measures sustaining capital expenditures and development capital expenditures | |||||||
(ii) Sustaining capital expenditures and development capital expenditures include capitalized exploration | |||||||
Reconciliation of Long-Term Debt to Net Debt
As at | As at | ||
June 30, 2023 | December 31, 2022 | ||
Current portion of long-term debt per the consolidated balance sheets | $ — | $ 100,000 | |
Non-current portion of long-term debt | 1,942,019 | 1,242,070 | |
Long-term debt | $ 1,942,019 | $ 1,342,070 | |
Adjustments: | |||
Cash and cash equivalents | $ (432,526) | $ (658,625) | |
Net Debt | $ 1,509,493 | $ 683,445 |
Reconciliation of Adjusted Net Income(i) to Net Income
(thousands of | Three Months Ended June 30, | Six Months Ended June 30, | |||||
2023 | 2022 | 2023 | 2022 | ||||
Restated(ii) | Restated(ii) | ||||||
Net income for the period - basic | $ 326,821 | $ 290,389 | $ 2,143,712 | $ 409,465 | |||
Dilutive impact of cash settling LTIP | (1,140) | (2,745) | (2,916) | 398 | |||
Net income for the period - diluted | $ 325,681 | $ 287,644 | $ 2,140,796 | $ 409,863 | |||
Foreign currency translation loss (gain) | 4,014 | (13,492) | 4,234 | (12,282) | |||
Realized and unrealized (gain) loss on derivative financial instruments | (26,433) | 40,753 | (32,972) | 12,089 | |||
Transaction costs and severance related to acquisitions | 1,674 | 11,372 | 16,912 | 92,139 | |||
Revaluation gain on Yamana Transaction | — | — | (1,543,414) | — | |||
Environmental remediation | (1,420) | (319) | (1,977) | (2,618) | |||
Integration costs | — | 457 | — | 457 | |||
Net loss on disposal of property,plant and equipment | 1,058 | 2,828 | 3,601 | 3,914 | |||
Purchase price allocation to inventory(iii) | 22,821 | 39,185 | 22,821 | 152,836 | |||
Income and mining taxes adjustments | (6,121) | (9,516) | (19,223) | (49,398) | |||
Adjusted net income for the period - basic | $ 322,414 | $ 361,657 | $ 593,694 | $ 606,602 | |||
Adjusted net income for the period - diluted | $ 321,274 | $ 358,912 | $ 590,778 | $ 607,000 | |||
Notes: | |||||||
(i) Adjusted net income is not a recognized measure under IFRS and this data may not be comparable to other gold producers. See Note on Certain Measures of Performance for more information on the Company's use of adjusted net income | |||||||
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger | |||||||
(iii) As part of the purchase price allocation in a business combination, the Company is required to determine the fair value of net assets acquired. These non-cash fair value adjustments which increased the cost of inventory sold during the period and are not representative of ongoing operations, were normalized from net income | |||||||
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FAQ
What were the financial and operating results for Agnico Eagle Mines in Q2 2023?
What are the key value drivers and pipeline projects for Agnico Eagle Mines?
What were the exploration results at Detour, Meliadine, Kittila, and Hope Bay?
What challenges did Agnico Eagle Mines face in Q2 2023?
