AGNICO EAGLE REPORTS SECOND QUARTER 2024 RESULTS - THIRD CONSECUTIVE QUARTER OF RECORD FREE CASH FLOW UNDERPINNED BY CONSISTENT, STRONG OPERATIONAL AND COST PERFORMANCE; UPPER BEAVER PROJECT STUDY SHOWS SOLID RISK-ADJUSTED RETURNS
Agnico Eagle Mines (NYSE: AEM, TSX: AEM) reported strong Q2 2024 results, achieving record free cash flow for the third consecutive quarter. Payable gold production was 895,838 ounces with production costs at $862 per ounce. The company generated over $557.2 million in free cash flow, boosting its cash position by $397.4 million to $922.0 million.
Quarterly net income was $472.0 million ($0.95 per share), while adjusted net income was $535.3 million ($1.07 per share). Agnico Eagle maintained its full-year guidance for gold production, costs, and capital expenditures.
Key projects include the Detour Lake underground and Upper Beaver, with investments of $100.0 million and $200.0 million, respectively, over three years. Detour Lake achieved record mill throughput, while Upper Beaver shows potential for significant gold and copper production.
The company declared a quarterly dividend of $0.40 per share and repurchased 763,043 shares for $50.0 million. Agnico Eagle also approved a supplemental exploration budget of $50.0 million based on positive results.
Agnico Eagle Mines (NYSE: AEM, TSX: AEM) ha riportato risultati solidi per il secondo trimestre del 2024, raggiungendo un flusso di cassa libero record per il terzo trimestre consecutivo. La produzione di oro pagabile è stata di 895.838 once, con costi di produzione pari a 862 dollari per oncia. L'azienda ha generato oltre 557,2 milioni di dollari in flusso di cassa libero, aumentando la sua posizione di cassa di 397,4 milioni di dollari a 922,0 milioni di dollari.
Il reddito netto trimestrale è stato di 472 milioni di dollari (0,95 dollari per azione), mentre il reddito netto rettificato è stato di 535,3 milioni di dollari (1,07 dollari per azione). Agnico Eagle ha mantenuto le previsioni per l'intero anno relative alla produzione di oro, ai costi e alle spese capitali.
I principali progetti includono il Detour Lake sotterraneo e Upper Beaver, con investimenti di 100,0 milioni di dollari e 200,0 milioni di dollari, rispettivamente, nel corso di tre anni. Detour Lake ha raggiunto un record di capacità di lavorazione, mentre Upper Beaver mostra potenzialità significative per la produzione di oro e rame.
L'azienda ha dichiarato un dividendo trimestrale di 0,40 dollari per azione e ha ricomprato 763.043 azioni per 50,0 milioni di dollari. Agnico Eagle ha inoltre approvato un budget di esplorazione supplementare di 50,0 milioni di dollari sulla base di risultati positivi.
Agnico Eagle Mines (NYSE: AEM, TSX: AEM) reportó resultados sólidos para el segundo trimestre de 2024, alcanzando un flujo de caja libre récord por tercer trimestre consecutivo. La producción de oro pagable fue de 895,838 onzas, con costos de producción de $862 por onza. La compañía generó más de $557.2 millones en flujo de caja libre, aumentando su posición de efectivo en $397.4 millones a $922.0 millones.
El ingreso neto trimestral fue de $472.0 millones ($0.95 por acción), mientras que el ingreso neto ajustado fue de $535.3 millones ($1.07 por acción). Agnico Eagle mantuvo su guía de producción de oro, costos y gastos de capital para todo el año.
Los proyectos clave incluyen el Detour Lake subterráneo y Upper Beaver, con inversiones de $100.0 millones y $200.0 millones, respectivamente, durante tres años. Detour Lake alcanzó un rendimiento récord de molienda, mientras que Upper Beaver muestra potencial para una producción significativa de oro y cobre.
La compañía declaró un dividendo trimestral de $0.40 por acción y recompró 763,043 acciones por $50.0 millones. Agnico Eagle también aprobó un presupuesto de exploración suplementario de $50.0 millones basado en resultados positivos.
아그니코 이글 마인즈 (NYSE: AEM, TSX: AEM)는 2024년 2분기 실적을 강력하게 보고하며, 3분기 연속으로 기록적인 자유 현금 흐름을 올렸습니다. 유효 금 생산량은 895,838온스이며 생산 비용은 온스당 862달러입니다. 회사는 5억 5720만 달러 이상의 자유 현금 흐름을 창출했으며, 현금 보유액을 3억 9740만 달러 늘려 9억 2200만 달러에 도달했습니다.
분기 순이익은 4억 7200만 달러 (주당 0.95달러)였으며, 조정된 순이익은 5억 3530만 달러 (주당 1.07달러)였습니다. 아그니코 이글은 금 생산, 비용 및 자본 지출에 대한 연간 가이던스를 유지했습니다.
주요 프로젝트로는 디투어 레이크 지하와 어퍼 비버가 있으며, 이에 각각 1억 달러와 2억 달러를 3년 동안 투자할 예정입니다. 디투어 레이크는 기록적인 처리량을 달성했으며, 어퍼 비버는 상당한 금 및 구리 생산 잠재력을 보이고 있습니다.
회사는 주당 0.40달러의 분기 배당금을 선언하고 5000만 달러에 763,043주를 재매입했습니다. 아그니코 이글은 또한 긍정적인 결과에 기반하여 5000만 달러의 보조 탐사 예산을 승인했습니다.
Agnico Eagle Mines (NYSE: AEM, TSX: AEM) a annoncé de solides résultats pour le deuxième trimestre 2024, réalisant un flux de trésorerie disponible record pour le troisième trimestre consécutif. La production d'or payable a atteint 895 838 onces avec des coûts de production de 862 dollars par once. L'entreprise a généré plus de 557,2 millions de dollars de flux de trésorerie libre, augmentant sa position de trésorerie de 397,4 millions de dollars à 922,0 millions de dollars.
Le bénéfice net trimestriel s'est élevé à 472,0 millions de dollars (0,95 dollar par action), tandis que le bénéfice net ajusté était de 535,3 millions de dollars (1,07 dollar par action). Agnico Eagle a maintenu ses prévisions annuelles pour la production d'or, les coûts et les dépenses d'investissement.
Les projets clés incluent le Detour Lake souterrain et Upper Beaver, avec des investissements de 100,0 millions de dollars et 200,0 millions de dollars, respectivement, sur trois ans. Detour Lake a atteint un rendement record en matière de traitement, tandis qu'Upper Beaver montre un potentiel significatif pour la production d'or et de cuivre.
L'entreprise a déclaré un dividende trimestriel de 0,40 dollar par action et a racheté 763 043 actions pour 50,0 millions de dollars. Agnico Eagle a également approuvé un budget d'exploration supplémentaire de 50,0 millions de dollars sur la base de résultats positifs.
Agnico Eagle Mines (NYSE: AEM, TSX: AEM) hat starke Ergebnisse für das zweite Quartal 2024 gemeldet und erreichte drei aufeinanderfolgende Quartale mit rekordverdächtigem freien Cashflow. Die förderbare Goldproduktion betrug 895.838 Unzen, bei Produktionskosten von 862 Dollar pro Unze. Das Unternehmen generierte über 557,2 Millionen Dollar an freiem Cashflow und erhöhte seine liquiden Mittel um 397,4 Millionen Dollar auf 922,0 Millionen Dollar.
Der Quartalsnettoertrag betrug 472,0 Millionen Dollar (0,95 Dollar pro Aktie), während der angepasste Nettoertrag 535,3 Millionen Dollar (1,07 Dollar pro Aktie) betrug. Agnico Eagle hielt an seiner Jahresprognose für Goldproduktion, Kosten und Investitionen fest.
Wichtige Projekte sind das Detour Lake Untertage und Upper Beaver, mit Investitionen von 100,0 Millionen Dollar bzw. 200,0 Millionen Dollar über drei Jahre. Detour Lake erreichte einen Rekorddurchsatz in der Mühle, während Upper Beaver Potenzial für signifikante Gold- und Kupferproduktion zeigt.
Das Unternehmen erklärte eine vierteljährliche Dividende von 0,40 Dollar pro Aktie und kaufte 763.043 Aktien für 50,0 Millionen Dollar zurück. Agnico Eagle genehmigte ebenfalls ein zusätzliches Erkundungsbudget von 50,0 Millionen Dollar basierend auf positiven Ergebnissen.
- Record free cash flow of $557.2 million.
- Quarterly net income of $472.0 million ($0.95 per share).
- Adjusted net income of $535.3 million ($1.07 per share).
- Gold production of 895,838 ounces.
- Increase in cash position by $397.4 million.
- Full-year guidance for production and costs maintained.
- Approval of $50.0 million supplemental exploration budget.
- Production costs increased to $862 per ounce.
- Total cash costs per ounce increased to $870.
- AISC per ounce increased to $1,169.
Insights
Agnico Eagle's Q2 2024 results demonstrate strong operational and financial performance, driven by robust gold production and higher gold prices. Key highlights include:
- Record quarterly adjusted net income of
$535.3 million ($1.07 per share) - Record quarterly cash provided by operating activities of
$961.3 million - Record free cash flow of
$557.2 million - Gold production of 895,838 ounces at total cash costs of
$870 per ounce
The company's financial position continues to strengthen, with cash increasing by
The company's focus on capital discipline and cost control is evident, as it maintains its full-year 2024 production guidance of 3.35-3.55 million ounces and cost guidance. This disciplined approach, combined with strong operational execution, positions Agnico Eagle well to capitalize on higher gold prices and generate substantial free cash flow.
Agnico Eagle's Q2 results highlight its operational excellence and strategic growth initiatives. The company is making measured investments to advance key projects:
- Detour Lake Underground:
$100 million investment over 3 years for exploration ramp development - Upper Beaver:
$200 million investment over 3 years for exploration ramp and shaft development
These investments aim to de-risk and further evaluate projects with potential for solid risk-adjusted returns. The Detour Lake underground project could increase annual production to approximately 1 million ounces for 14 years starting in 2030, while Upper Beaver shows potential for annual production of 210,000 ounces of gold and 3,600 tonnes of copper.
The company's exploration program is yielding positive results, particularly at Canadian Malartic, Detour Lake and Hope Bay. This success has led to an increased exploration budget, demonstrating Agnico Eagle's commitment to organic growth and resource expansion.
The Odyssey mine at Canadian Malartic is progressing well, with record quarterly mining rates and gold production from Odyssey South. These developments underscore Agnico Eagle's ability to execute on its growth strategy while maintaining strong operational performance across its existing asset base.
Agnico Eagle is demonstrating a strong commitment to environmental, social and governance (ESG) practices. Key initiatives include:
- Release of the company's first Reconciliation Action Plan, reinforcing its commitment to Indigenous Peoples and communities
- Publication of the 2023 Climate Action Report, aligning with Task Force on Climate-related Financial Disclosures (TCFD) recommendations and Towards Sustainable Mining Climate Change protocol
These actions highlight Agnico Eagle's proactive approach to addressing critical ESG issues, including climate change risks and opportunities and fostering positive relationships with Indigenous communities. Such initiatives are increasingly important for mining companies, as they can impact social license to operate, access to capital and long-term sustainability.
The company's focus on ESG factors, combined with its strong operational and financial performance, positions it well in an industry where responsible mining practices are becoming increasingly crucial. Investors should view these ESG commitments positively, as they demonstrate Agnico Eagle's awareness of and responsiveness to evolving stakeholder expectations and regulatory environments.
Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in
"We continue to deliver strong and reliable operational results which, combined with higher gold prices, drove record operating margin and free cash flow for the third consecutive quarter. As a result of the excellent performance of our operations through the first half of 2024, we are highly confident we will achieve our full year production and cost guidance," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "We generated over half of a billion dollars of free cash flow in the second quarter, supporting a significant strengthening of our balance sheet and increased returns to shareholders. We continue to take a measured approach advancing key pipeline projects that show strong risk-adjusted returns, such as the Detour Lake underground and Upper Beaver projects. Our focus remains on capital discipline and cost control to ensure that the benefits of higher gold prices accrue to our shareholders through strengthening our financial position and increasing shareholder returns," added Mr. Al-Joundi.
Second quarter 2024 highlights:
- Strong quarterly gold production – Payable gold production1 was 895,838 ounces at production costs per ounce of
$862 $870 $1,169 Fosterville - Record quarterly adjusted net income3 – The Company reported quarterly net income of
$472.0 million $0.95 $535.3 million $1.07 - Record quarterly cash provided by operating activities and free cash flow – The Company generated record cash provided by operating activities of
$961.3 million $1.92 $986.2 million $1.97 $557.2 million $1.12 $582.2 million $1.17 - Strengthening investment grade balance sheet and financial flexibility – The Company increased its cash position by
$397.4 million $922.0 million $100.0 million 5.02% Series B senior notes at maturity and repaid$150.0 million $600.0 million - 2024 gold production and cost guidance reiterated – Full year expected payable gold production remains unchanged at approximately 3.35 to 3.55 million ounces in 2024, with total cash costs per ounce and AISC per ounce in 2024 unchanged at
$875 $925 $1,200 $1,250 $1.6 billion $1.7 billion $187 million - Update on key value drivers and pipeline projects
- Approval of measured investments over next three years to further evaluate and de-risk the Detour Lake underground and Upper Beaver projects – Based on internal studies indicating solid risk-adjusted returns for the Detour Lake underground and Upper Beaver projects5, the Company has adopted a measured approach to advance these projects, approving
$100.0 million $200.0 million - Detour Lake – In June 2024, the Company released the results of a technical study reflecting the potential for a concurrent underground operation at Detour Lake that would accelerate access to higher grade ore and increase annual production to approximately one million ounces for 14 years starting in 2030 (see the Company's news release dated June 19, 2024). In the second quarter of 2024, with the replacement of the defective grinding media at the SAG mill and record quarterly mill availability of
93.0% , mill throughput improved to 74,637 tonnes per day ("tpd") and is expected to reach the target rate of 76,700 tpd by the end of 2024 - Upper Beaver – A positive internal evaluation was completed in June 2024 for a standalone mine and mill scenario at Upper Beaver. Based on this evaluation, the Company believes Upper Beaver has the potential to produce an annual average of approximately 210,000 ounces of gold and 3,600 tonnes of copper, with initial production possible as early as 2030. Over an expected 13-year mine life, total payable gold and copper production is expected to be approximately 2.8 million ounces and 46,300 tonnes, respectively. Estimated total cash costs per ounce on a by-product basis and AISC per ounce on a by-product basis are expected to be approximately
$592 $733 Kirkland Lake camp - Odyssey mine at Canadian Malartic – At Odyssey South, record quarterly mining rates and gold production were achieved at approximately 3,750 tpd and 22,300 ounces of gold, respectively. In the second quarter of 2024, ramp development continued to exceed the Company's target, reaching the third production level at East Gouldie at a depth of 832 metres as at June 30, 2024. Shaft sinking advanced at an average rate of 2.5 metres per day and reached a depth of 680 metres as at June 30, 2024. Surface construction is progressing as planned, with a focus on the main hoist building, phase two of the paste plant and the operations complex
- Detour Lake – In June 2024, the Company released the results of a technical study reflecting the potential for a concurrent underground operation at Detour Lake that would accelerate access to higher grade ore and increase annual production to approximately one million ounces for 14 years starting in 2030 (see the Company's news release dated June 19, 2024). In the second quarter of 2024, with the replacement of the defective grinding media at the SAG mill and record quarterly mill availability of
- Approval of a supplemental exploration budget of
$50.0 million - East Gouldie at Odyssey mine – Recent exploration drilling continued to return good results in the eastern and western extensions of the East Gouldie deposit including 4.5 grams per tonne ("g/t") gold over 6.5 metres at 1,571 metres depth approximately 770 metres east of the current mineral reserves and 2.5 g/t gold over 30.0 metres at 1,473 metres depth and 85 metres west of the current mineral reserves. The results from the ongoing exploration program are anticipated to have a positive impact on the mineral resource estimate at year-end 2024
- Detour Lake underground – Infill drilling into the high-grade corridor in the West Pit zone continued to confirm the higher grades and mineralized structure amenable to underground mining. Highlights include 4.0 g/t gold over 22.3 metres at 413 metres depth and 4.4 g/t gold over 30.1 metres at 550 metres depth. Near the proposed exploration ramp, highlights include 20.6 g/t gold over 5.5 metres at 280 metres depth and 4.7 g/t gold over 15.6 metres at 313 metres depth
Madrid at Hope Bay – Exploration drilling during the second quarter of 2024 totalled 35,400 metres and continued to return strong results from infill drilling north of the Patch 7 mineral resources, including 17.0 g/t gold over 25.8 metres at 419 metres depth, 7.2 g/t gold over 8.1 metres at 559 metres depth and 5.3 g/t gold over 18.0 metres at 278 metres depth, further confirming the greater thicknesses and higher gold grades in this area compared to the rest of theMadrid deposit
- Reconciliation Action Plan and 2023 Climate Action Report published – On July 10, 2024, the Company released its first Reconciliation Action Plan, reinforcing its commitment to reconciliation with Indigenous Peoples and communities. In addition, on July 31, 2024, the Company released its 2023 Climate Action Report. In line with the recommendations of the Task Force on Climate-related Financial Disclosures and Towards Sustainable Mining Climate Change protocol, the 2023 Climate Action Report outlines how the Company is addressing climate change risks and opportunities
- Continued focus on shareholder returns – In the second quarter of 2024, the board of directors declared a quarterly dividend of
$0.40 $65.53 $50.0 million
- Approval of measured investments over next three years to further evaluate and de-risk the Detour Lake underground and Upper Beaver projects – Based on internal studies indicating solid risk-adjusted returns for the Detour Lake underground and Upper Beaver projects5, the Company has adopted a measured approach to advance these projects, approving
_______________________________ |
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 and AISC per ounce are a non-GAAP ratios that are not standardized financial measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP measures and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding Certain Measures of Performance" below. |
3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. |
4 Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below. |
5 The forecast parameters surrounding the technical study for the Detour Lake underground project and the internal evaluation for the Upper Beaver project were based on a preliminary economic assessment, which is preliminary in nature and includes inferred mineral resources. For further detail, refer to the Company's news release dated June 19, 2024 for the Detour Lake underground project and the Update on Key Value Drivers and Pipeline Projects section set our below for the Upper Beaver project. |
Second Quarter 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Thursday, August 1, 2024 at 11:00 AM (E.D.T.) to discuss the Company's financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may register on the Company website at www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.764.8659 or toll-free 1.888.664.6392 to be entered into the call by an operator. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
To join the conference call by phone without operator assistance, you may register your phone number here 30 minutes prior to the scheduled start of the call to receive an instant automated call back.
Replay Archive:
Please dial 416.764.8677 or toll-free 1.888.390.0541, access code 576159#. The conference call replay will expire on September 1, 2024.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Second Quarter 2024 Production and Cost Results
Production and Cost Results Summary* | ||||||||
Three Months Ended | Six Months Ended | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Gold production (ounces) | 895,838 | 873,204 | 1,774,490 | 1,686,017 | ||||
Gold sales (ounces) | 874,230 | 858,848 | 1,753,293 | 1,646,406 | ||||
Production costs per ounce | $ 862 | $ 851 | $ 877 | $ 828 | ||||
Total cash costs per ounce | $ 870 | $ 840 | $ 885 | $ 836 | ||||
AISC per ounce | $ 1,169 | $ 1,150 | $ 1,179 | $ 1,138 | ||||
* Production and Cost Results Summary reflects Agnico Eagle's |
Gold Production
- Second Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from Meadowbank and Macassa, partially offset by lower production at
Fosterville - First Six Months of 2024 – Gold production increased when compared to the prior-year period as a result of the additional production from the acquisition of the remaining
50% of Canadian Malartic, contribution from Odyssey in the current year and increased production from Meadowbank, partially offset by lower production atFosterville
Production Costs per Ounce
- Second Quarter and First Six Months of 2024 – Total production costs per ounce increased when compared to the prior-year periods primarily due to higher royalties mainly arising from higher gold prices and higher production costs at Canadian Malartic related to underground mining operations, partially offset by higher gold production during the period
Total Cash Costs per Ounce
- Second Quarter and First Six Months of 2024 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to the reasons described above for the increase in production costs per ounce combined with the impact of lower gold grades at Fosterville, partially offset by higher gold production during the period
AISC per Ounce
- Second Quarter of 2024 – AISC per ounce increased when compared to the prior-year period due to the factors causing higher total cash costs per ounce, partially offset by higher production and slightly lower sustaining capital expenditures during the period
- First Six Months of 2024 – AISC per ounce increased when compared to the prior-year period due to the factors causing higher total cash costs per ounce and higher sustaining capital expenditures, partially offset by higher gold production during the period
Second Quarter 2024 Financial Results
Financial Results Summary | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 20236 | 2024 | 20236 | |||||
Realized gold price ($/ounce)7 | $ 2,342 | $ 1,975 | $ 2,202 | $ 1,935 | ||||
Net income ($ millions)8 | $ 472.0 | $ 323.7 | $ 819.2 | $ 2,140.6 | ||||
Adjusted net income ($ millions) | $ 535.3 | $ 319.3 | $ 912.7 | $ 590.5 | ||||
EBITDA ($ millions)9 | $ 1,123.1 | $ 883.4 | $ 2,005.6 | $ 3,156.3 | ||||
Adjusted EBITDA ($ millions)9 | $ 1,176.2 | $ 885.2 | $ 2,105.5 | $ 1,625.6 | ||||
Cash provided by operating activities ($ millions) | $ 961.3 | $ 722.0 | $ 1,744.5 | $ 1,371.6 | ||||
Cash provided by operating activities before changes in | $ 986.2 | $ 693.0 | $ 1,763.3 | $ 1,301.8 | ||||
Capital expenditures10 | $ 407.3 | $ 416.0 | $ 779.3 | $ 757.8 | ||||
Free cash flow ($ millions) | $ 557.2 | $ 298.4 | $ 952.8 | $ 563.1 | ||||
Free cash flow before changes in non-cash working capital | $ 582.2 | $ 269.4 | $ 971.6 | $ 493.3 | ||||
Net income per share (basic) | $ 0.95 | $ 0.66 | $ 1.64 | $ 4.45 | ||||
Adjusted net income per share (basic) | $ 1.07 | $ 0.65 | $ 1.83 | $ 1.23 | ||||
Cash provided by operating activities per share (basic) | $ 1.92 | $ 1.46 | $ 3.50 | $ 2.85 | ||||
Cash provided by operating activities before changes in non-cash working capital | $ 1.97 | $ 1.40 | $ 3.54 | $ 2.70 | ||||
Free cash flow per share (basic) | $ 1.12 | $ 0.60 | $ 1.91 | $ 1.17 | ||||
Free cash flow before changes in non-cash working capital | $ 1.17 | $ 0.55 | $ 1.95 | $ 1.02 | ||||
Net Income
- Second Quarter of 2024
- Net income was
$472.0 million $0.95 $25.7 million $0.05 $14.4 million $0.03 $11.5 million $0.02 $11.7 million $0.02 - Excluding the above items results in adjusted net income of
$535.3 million $1.07 - Included in net income and not adjusted above, is a non-cash stock option expense of
$2.1 million $0.01 - et income of
$472.0 million $323.7 million
- Net income was
- First Six Months of 2024 – Net income of
$819.2 million 50% interest in CanadianMalartic to fair value, partially offset by higher realized gold prices and higher sales volumes
___________________________________ |
6 Certain previously reported line items have been restated to reflect the final purchase price allocation related to the acquisition of the Canadian assets of Yamana Gold Inc. (the "Yamana Transaction") including the |
7 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold. |
8 For the first quarter of 2023, includes a |
9 "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. |
10 Includes capitalized exploration. |
11 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. |
Adjusted EBITDA
- Second Quarter of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to stronger mine operating margins from higher realized gold prices and higher sales volumes
- First Six Months of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to the reasons set out above for net income and as a result of the acquisition of the remaining
50% of Canadian Malartic
Cash Provided by Operating Activities
- Second Quarter and First Six Months of 2024 – Cash provided by operating activities and cash provided by operating activities before changes in non-cash working capital balances increased when compared to the prior-year periods primarily due to the reasons described above related to the increases in adjusted EBITDA
Free Cash Flow Before Changes in Non-cash Working Capital Balances
- Second Quarter and First Six Months of 2024 – Free cash flow before changes in non-cash working capital balances was a record for the third consecutive quarter and increased when compared to the prior-year periods due to the reasons described above related to cash provided by operating activities, as well as lower additions to property, plant and mine development
Capital Expenditures
In the second quarter of 2024, capital expenditures were
The following table sets out a summary of capital expenditures (including sustaining capital expenditures12 and development capital expenditures12) and capitalized exploration in the second quarter of 2024 and the first six months of 2024.
_________________________________ |
12 Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial measures under IFRS. For a discussion of the composition and usefulness of these non-GAAP measures and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of Performance" below. |
Summary of Capital Expenditures | |||||||
($ thousands) | |||||||
Capital Expenditures* | Capitalized Exploration | ||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | ||||
Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2024 | ||||
Sustaining Capital Expenditures | |||||||
LaRonde | $ 20,899 | $ 43,823 | $ 557 | 876 | |||
Canadian | 28,053 | 55,098 | — | — | |||
Goldex | 11,354 | 23,407 | 1,045 | 1,783 | |||
Detour Lake | 61,971 | 111,609 | — | — | |||
Macassa | 6,058 | 16,189 | 408 | 808 | |||
Meliadine | 16,083 | 33,948 | 2,490 | 3,827 | |||
Meadowbank | 21,560 | 41,502 | — | — | |||
7,306 | 12,789 | — | — | ||||
Kittila | 18,212 | 34,276 | 415 | 865 | |||
6,102 | 11,091 | 617 | 920 | ||||
La | — | 22 | — | — | |||
Other | 1,940 | 2,269 | 270 | 845 | |||
Total Sustaining Capital Expenditures | $ 199,538 | $ 386,023 | $ 5,802 | $ 9,924 | |||
Development Capital Expenditures | |||||||
LaRonde | $ 20,637 | $ 44,726 | $ — | — | |||
Canadian | 43,199 | 79,204 | 874 | 2,192 | |||
Goldex | 2,925 | 7,056 | — | — | |||
Detour Lake | 31,315 | 69,074 | 9,547 | 17,099 | |||
Macassa | 22,312 | 34,458 | 9,386 | 17,704 | |||
Meliadine | 18,849 | 37,094 | 2,720 | 6,806 | |||
Meadowbank | — | (27) | — | — | |||
9,186 | 18,614 | 3,342 | 6,966 | ||||
Kittila | 1,288 | 2,196 | 2,428 | 4,559 | |||
806 | 1,452 | — | 4 | ||||
San Nicolás project | 6,284 | 11,655 | — | — | |||
Other | 6,051 | 8,016 | 10,813 | 14,525 | |||
Total Development Capital Expenditures | $ 162,852 | $ 313,518 | $ 39,110 | $ 69,855 | |||
Total Capital Expenditures | $ 362,390 | $ 699,541 | $ 44,912 | $ 79,779 | |||
* Excludes capitalized exploration |
2024 Guidance
Production and Cost Guidance
Full year guidance remains unchanged at approximately 3.35 to 3.55 million ounces of gold, total cash costs per ounce of
Capital Expenditure Guidance
Total expected capital expenditures (excluding capitalized exploration) for 2024 are still estimated to be between
Exploration Guidance
The Company's exploration and corporate development expense for 2024 is now expected to be approximately
The Company's capitalized exploration expenditures are now expected to be approximately
The breakdown of the incremental budget approved in exploration expense and capitalized exploration expenditures is set out in the table below.
Estimated 2024 Mid-Point Exploration and Corporate Development Expense and 2024 Capitalized Exploration Expenditures
Exploration and | Capitalized Exploration | ||
($ thousands) | Sustaining | Non-Sustaining | |
Prior Guidance | $ 230,000 | $ 16,500 | $ 92,100 |
Incremental exploration expenditures: | |||
Canadian | 16,500 | — | — |
Detour Lake | 2,300 | — | 28,200 |
Upper Beaver | — | — | 50,000 |
Hope Bay | 22,600 | — | — |
Guidance | $ 271,400 | $ 16,500 | $ 170,300 |
Depreciation Guidance
Depreciation and amortization expense in 2024 is now expected to be at the lower end of the guidance range of
Record Cash Flow Generation Continues to Enhance Investment Grade Balance Sheet Alongside Continued Commitment to Shareholder Returns
Cash and cash equivalents increased by
As at June 30, 2024, the Company's long-term debt was
The following table sets out the calculation of net debt13, which decreased by
Net Debt Summary | ||||
($ millions) | ||||
As at | As at | |||
Jun 30, 2024 | Mar 31, 2024 | |||
Current portion of long-term debt | $ 740.0 | $ 100.0 | ||
Non-current portion of long-term debt | 1,101.7 | 1,741.0 | ||
Long-term debt | $ 1,841.7 | $ 1,841.0 | ||
Less: cash and cash equivalents | (922.0) | (524.6) | ||
Net debt | $ 919.7 | $ 1,316.4 | ||
Subsequent to June 30, 2024, the Company completed two debt repayments. On July 24, 2024,
In order to maintain financial flexibility, and consistent with past practice, the Company filed a new base shelf prospectus in the second quarter of 2024. The Company has no present intention to offer securities pursuant to the base shelf prospectus and the notice set out in this paragraph does not constitute an offer of any securities for sale or an offer to sell or the solicitation of an offer to buy any securities.
_________________________________ |
13 Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance" below. |
Hedges
Approximately
With the 2024 sealift underway at 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. Hedging positions are not factored into 2024 or future guidance.
Shareholder Returns
Dividend Record and Payment Dates for the Third Quarter of 2024
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of
Expected Dividend Record and Payment Dates for the 2024 Fiscal Year
Record Date | Payment Date |
March 1, 2024* | March 15, 2024* |
May 31, 2024* | June 14, 2024* |
August 30, 2024** | September 16, 2024** |
November 29, 2024 | December 16, 2024 |
*Paid |
**Declared |
Dividend Reinvestment Plan
Subsequent to the end of the second quarter of 2024, the Company's board of directors approved an amendment to the terms of its dividend reinvestment plan (the "DRIP") to provide the Company with the flexibility to adjust the discount provided under the DRIP to between no discount (
For a copy of the amended and restated DRIP, which will be posted on receipt of TSX pre-clearance of the amendment, and for additional information on the Company's DRIP see: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency exchange program, please contact Computershare Trust Company of
Normal Course Issuer Bid
In addition to the quarterly dividend, the Company believes that its NCIB is a flexible and complementary tool that is part of the Company's overall capital allocation program and that generates value for shareholders. The Company received approval from the TSX to renew its NCIB in May 2024, allowing the Company to purchase up to
Environment, Social and Governance Highlights
Reconciliation Action Plan
On July 10, 2024, the Company released its first Reconciliation Action Plan, reinforcing its commitment to reconciliation with Indigenous Peoples and communities. To the Company's knowledge, it is the first mining company in
The Company's reconciliation efforts, which began in
Organized into seven pillars that form the basis for the Company's actions, the Reconciliation Action Plan aligns with the United Nations Declaration on the Rights of Indigenous People and integrates the Company's existing Indigenous programs and initiatives into a central and comprehensive strategy aimed at delivering tangible benefits for Indigenous Peoples. It complements and strengthens the Company's ongoing efforts aimed at contributing to the economic, social and emotional well-being of Indigenous Peoples and communities.
Agnico Eagle's Reconciliation Action Plan with Indigenous Peoples is available on the Company's website at www.agnicoeagle.com or can be downloaded directly by clicking here.
Dja Dja Wurrung Agreement Signed for
On May 13, 2024, Agnico Eagle and leaders of the Dja Dja Wurrung People ("Djaara") celebrated the signing of a historic agreement at
2023 Climate Action Report
On July 31, 2024, the Company released its 2023 Climate Action Report, which provides an update regarding the Company's 2023 greenhouse gas ("GHG") emissions performance, climate strategy and progress achieved towards climate goals. The report is aligned with the recommendations of the Task Force on Climate-related Financial Disclosures and Towards Sustainable Mining Climate Change protocol, and supplements the Company's 2023 Sustainability Report released in April 2024.
Highlights of the 2023 Climate Action Report include:
- GHG Emissions Targets – Agnico Eagle remains committed to achieving Net-Zero in absolute Scope 1 and Scope 2 carbon emissions by 2050 and maintains its interim carbon reduction target of
30% by 2030 (based on a 2021 baseline) - Industry Leader for GHG Emissions Intensity (Scope 1 and 2) – The Company continues to be a gold industry leader with one of the lowest GHG emissions intensities amongst medium and large gold producers globally. In 2023, the Company's global average GHG emissions intensity was 0.38 tonnes of CO2 equivalent per ounce of gold produced and all 11 active operations outperformed the 2022 industry average14. In 2023, GHG emissions decreased by
3% compared to 2022 and5% compared to the Company's 2021 baseline - Supplier Engagement – Agnico Eagle has improved its Scope 3 methodology to incorporate updated and location-specific emission factors. The Company advanced its supplier engagement program to prioritize decarbonization partnership opportunities with its global supply chain, support improved understanding and increased data availability and to inform decision-making with a view to increasing the Company's climate resilience and reducing Scope 3 emissions
- Decarbonization Strategy – Agnico Eagle prioritizes investments in technological innovation to support decarbonization focused on (i) energy efficiency, (ii) technology transition, which includes the increased use of battery electric vehicles across multiple operations, and (iii) renewable energy usage, which includes the deployment of cleaner power supplies at operations.
Pinos Altos continues to maintain its power purchase agreement to obtain solar-generated electricity, and Kittila entered into a Certificate of Origin agreement to obtain100% of its grid energy from zero-emission sources - Climate Action Corporate Standard – The Company rolled out a Climate Action Corporate Standard establishing a comprehensive process to identify, assess and manage climate-related risks and opportunities across operations, provide guidance for the development of site Climate Action Plans and establish consistent GHG accounting practices for Scope 1, 2 and 3 emissions
- Climate Transition Assessments – Transition risk assessments have been completed for each operation with the support of subject matter experts. Learnings will be used in building site resilience and in engaging with employees and communities
Agnico Eagle's 2023 Climate Action Report is available on the Company's website at www.agnicoeagle.com or can be downloaded directly by clicking here.
_________________________________ |
14 Industry average of 0.83 tonnes of CO2 equivalent for Scope 1 and 2 emissions per ounce of gold produced, as per S&P Global Market Intelligence (2022) |
Update on Key Value Drivers and Pipeline Projects
Highlights on key value drivers, including Upper Beaver, Odyssey, Detour Lake underground, Hope Bay and San Nicolás are set out below. Details on certain mine expansion projects (Detour Lake mill optimization, Meliadine Phase 2 expansion and Amaruq underground) are set out in the applicable operational sections of this news release.
Upper Beaver Project
An internal evaluation of the Upper Beaver project was completed in June 2024. The study shows solid risk-adjusted economic returns for a standalone mine and mill scenario, based on a 5,000 tpd production rate. The main highlights of this study are set out below.
The forecast parameters surrounding the internal evaluation at the Upper Beaver project were based on a preliminary economic assessment, which is preliminary in nature and includes 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 or other outcomes will be realized. The basis for the preliminary economic assessment and the qualifications and assumptions made by the Qualified Persons who undertook the preliminary economic assessment are set out in this news release. The impact of the results of the preliminary economic assessment on the results of any pre-feasibility or feasibility study in respect of Upper Beaver are described in the Appendix under "MRMR update for Upper Beaver gold-copper project" and below.
Project Description
The Upper Beaver gold-copper project is located in the township of Gauthier, in northeastern
The Upper Beaver deposit's gold-copper mineralization is mainly hosted in the Upper Beaver alkalic intrusive complex and the surrounding basalts it intruded, and is associated with disseminated pyrite and chalcopyrite, and magnetite-sulphide veining associated with strong magmatic-hydrothermal alteration. The mineralization occurs as elongated tabular bodies that strike northeast, dip steeply northwest and plunge 65 degrees to the northeast. The mineralization has been defined along a 400-metre strike length from surface to a depth of 2,000 metres and it remains open at depth.
The mineral reserve and mineral resource estimate at the Upper Beaver project has been updated to June 30, 2024 from the previous estimate at year-end 2023. The new estimate incorporates additional drill results, totalling 226,418 metres in 441 holes, and employs an improved mining concept with updated assumptions and drillhole database to reflect progress in the exploration program, project studies and optimization efforts. In the updated estimate, the mineral reserves have been reclassified as mineral resources that are supported by a positive internal preliminary economic assessment, which includes both indicated mineral resources and inferred mineral resources, that was completed in June 2024. As additional geotechnical fieldwork and metallurgical test work is completed through the remainder of the year, the Company anticipates that most indicated mineral resources will be converted into probable mineral reserves at year-end 2024.
A breakdown of the mineral resources used in the internal study is set out in the table below. Additional details on the Upper Beaver mineral resources at June 30, 2024 are set out in the Appendix of this news release. Additional details on the Upper Beaver mineral reserves and mineral resources at December 31, 2023, are set out in the Appendix and in the Company's news release dated February 15, 2024.
Category | Mineral Resources as at June 30, 2024 | ||||
000 Tonnes | Au (g/t) | Au (000 oz) | Cu (%) | Cu (000 tonnes) | |
Indicated Mineral | 3,326 | 1.85 | 198 | 0.14 | 5 |
Indicated Mineral | 27,550 | 3.66 | 3,242 | 0.24 | 66 |
Total Indicated Mineral | 30,876 | 3.47 | 3,440 | 0.23 | 71 |
Inferred Mineral | — | — | — | — | — |
Inferred Mineral | 2,959 | 4.13 | 393 | 0.36 | 11 |
Total Inferred Mineral | 2,959 | 4.13 | 393 | 0.36 | 11 |
The mining strategy developed for the Upper Beaver project is to mine the deposit mainly by conventional underground methods, although a small portion (approximately
Open pit operations will employ conventional methods of drilling, blasting and loading by excavator and wheel loader, with material haulage by truck to the various stockpiles, waste dump or directly to a crusher. Under current scenarios, production from the open pit is expected to occur from 2030 to 2034 at an average rate of approximately 2,000 tpd, of which 500 tpd will be stockpiled for later processing.
Current scenarios contemplate underground access through a main decline ramp as well as a shaft that is 1,220 metres deep and six metres in diameter. Four main stations are planned along the shaft, including a loading station at the bottom of the shaft. Ore and waste above 430 metres depth will be hauled to surface by trucks via the ramp. Ore and waste below 430 metres depth will be managed mainly through an ore and waste pass system and skipped to surface via the shaft. The underground mining concept is based on a long hole open stoping method, with sublevels every 30 metres and with stopes to be backfilled with paste and waste rock. The project is expected to use a combination of conventional and automated equipment, similar to what is currently used at the Company's mines in the region. Production from underground, via ramp and shaft, could begin as early as 2030 and ramp-up to an average rate of approximately 4,500 tpd in 2035.
The plant is anticipated to use a conventional milling process, including a gravity circuit and a copper flotation circuit, with a design capacity of 5,000 tpd, an average total gold recovery of
Located in the Abitibi region, where the Company believes it has a demonstrated competitive advantage, the Company expects the project will benefit from internal technical expertise, local workforce and other regional support and synergies, including procurement and warehousing. The Company believes its strong presence in the region lowers the execution risk for the construction and operation of the project.
The Company believes Upper Beaver has the potential to produce an annual average of approximately 210,000 ounces of gold and 3,600 tonnes of copper, with initial production possible as early as 2030. Over an expected 13-year mine life, total payable gold and copper production are expected to be approximately 2.8 million ounces and 46,300 tonnes, respectively. The total cash costs per ounce on a by-product basis and AISC per ounce on a by-product basis are expected to be approximately
Using a gold price of
An agreement with local indigenous communities and environmental permits are in place for the advanced exploration phase of the project, including for the development of an exploration ramp and an exploration shaft and the collection of two bulk samples. Negotiations with indigenous communities are ongoing to establish an agreement for the production phase if a development decision is made. The Company is also advancing environmental impact assessments required for the Federal and Provincial approvals and permits that will be required for the construction and production phases following a development decision.
Upper Beaver Project Summary | ||||
(All numbers are approximate) | ||||
Estimated total production | 2.8 | million ounces of gold | ||
46.3 | thousand tonnes of copper | |||
Average metallurgical recovery | 58.5 | % | average life of mine for gold doré | |
36.5 | % | average life of mine for gold in concentrate | ||
95.0 | % | average life of mine total gold recovery | ||
81.4 | % | average life of mine for copper in concentrate | ||
Copper in copper concentrate | 20 | % | ||
Payable metal | 100 | % | gold doré | |
96.5 | % | gold in concentrate | ||
94.6 | % | copper concentrate | ||
Refining costs | / oz | |||
/ tonne of copper concentrate | ||||
Average annual gold production | 2030 | 84,000 | oz (937kt at 2.98 g/t Au and | |
2031 | 175,000 | oz (1,670kt at 3.48 g/t Au and | ||
2032-2041 (average) | 220,000 | oz (1,795kt at 4.07 g/t Au and | ||
2042 | 191,000 | oz (1,475kt at 4.30 g/t Au and | ||
2043 | 162,000 | oz (1,270kt at 4.24 g/t Au and | ||
Royalty | 3.5 | % | NSR | |
Minesite costs per tonne | 2030 | C$/t (includes royalty) | ||
2031-2043 (average) | C$/t (includes royalty) | |||
Average total cash costs on a by-product basis | /oz | |||
Average AISC on a by-product basis | /oz | |||
Mine life | 13 | years | ||
Capital Expenditures | ||||
Development capital | H2 2024 | million | ||
2025 | million | |||
2026 | million | |||
2027 | million | |||
2028 | million | |||
2029 | million | |||
Sustaining capital | 2030 | million | ||
2031-2037 (average) | million | |||
2038-2042 (average) | million | |||
Total | million | |||
Reclamation Costs | million | |||
Economic Assumptions: | ||||
Gold Price | /oz | |||
Copper Price | /lb ( | |||
USD:CAD | 1.34 | |||
Effective tax rate | 32 | % | ||
Based on the positive result of the internal evaluation and taking a measured approach, the Company has approved a
Of the
Exploration Upside
Exploration results from recent years at Upper Beaver show the potential to increase the mineral resources and to convert inferred mineral resources at depth using underground access via the proposed exploration shaft and other underground infrastructure.
In the next stage of development, a bulk sampling program is planned in the two most representative geological zones of the Upper Beaver deposit. The first bulk sample will be taken from the upper level of the deposit, which is dominated by basaltic hosting lithologies, and will have the objective of testing selective mining assumptions in this area of the deposit. The second bulk sample will be taken from the lower level of the deposit, which is dominated by intrusion-suite hosting rocks, with the objective of validating mining parameters and grade variability at greater depth.
The Company believes the Upper Beaver project holds significant growth and synergy potential. The main deposit remains open at depth, as demonstrated by historical hole KLUB19-452W1 (presented in the Company's news release dated April 25, 2019), which intersected 7.6 g/t gold and
Additionally, multiple intrusions of similar nature to that associated with the emplacement of the Upper Beaver deposit have been identified in the immediate vicinity of the project. These intrusions are undergoing early-stage exploration efforts with the objective of developing targets for future regional diamond drilling programs.
[Upper Beaver – Composite Longitudinal Section]
Regional Potential
As a part of an
Opportunities for future synergies in the
The Anoki-McBean deposits lie 6.5 kilometres southwest of Upper Beaver and host indicated mineral resources of 3.9 million tonnes grading 2.77 g/t gold for 349,000 ounces of gold and inferred mineral resources of 867,000 tonnes grading 3.84 g/t gold for 107,000 ounces of gold as at December 31, 2023.
Several other historical mineralized occurrences in the
[
Odyssey Project
In the second quarter of 2024, ramp development continued to exceed targets, reaching the third production level of East Gouldie (a depth of 832 metres) as at June 30, 2024. Equipment remotely tele-operated from surface (scoops, trucks, jumbos and cable bolters) has helped maintain the development performance, offsetting the increase in depth. The Company continued to develop the main ventilation system, with the completion of the future exhaust raise between levels 26 and 36 and the development of the fresh air ramp between Odyssey South and East Gouldie.
In the second quarter of 2024, shaft sinking activities advanced at an average rate of 2.5 metres per day, slightly ahead of target, and as at June 30, 2024, the shaft reached a depth of 680 metres. The pre-sinking of the shaft between levels 54 and 66 was completed in the second quarter and the remainder of the shaft will be excavated by conventional sinking methods. The excavation of station 54 was completed in the quarter and the excavation of the temporary loading pocket between levels 60 and 64 is ongoing, with construction expected to be initiated in September 2024 and commissioning expected in mid-2025.
Surface construction progressed as planned and on budget in the second quarter of 2024. Areas of focus included the main hoist building, phase 2 of the paste plant (to expand capacity to 20,000 tpd) and the operational complex. At the main hoist building, installation of the mechanical components of the service hoist was completed in the second quarter of 2024 and the installation of the electrical components and controls is ongoing. The conceptual engineering for the paste plant expansion was completed in the second quarter of 2024 and detailed engineering has started. The contractor for the construction of the main office and service building was selected and is expected to be on site in the third quarter of 2024 with construction expected to be completed by the end of 2025.
Exploration drilling at Odyssey totalled 24,182 metres during the second quarter (50,442 metres during the first half of 2024) with seven underground drill rigs and six surface drill rigs in operation, primarily targeting the East Gouldie and Odyssey deposits.
Drilling into the lower eastern extension of the East Gouldie mineralized envelope produced highlights that included: hole MEX24-311 returning 4.5 g/t gold over 6.5 metres at 1,571 metres depth, 770 metres east of the East Gouldie mineral reserves; hole MEX24-311Z returning 8.7 g/t gold over 3.8 metres at 1,687 metres depth, approximately 110 metres below hole MEX24-311; and hole MEX23-310ZA returning 2.3 g/t gold over 15.3 metres at 1,694 metres depth, 410 metres east of the mineral reserves.
The drilling remains on track to achieve a 150-metre drill spacing in an area that spans over 900 metres in strike length and 700 metres in elevation in the eastern extension of East Gouldie, with the objective of adding new inferred mineral resources for year-end 2024.
Drilling into a previously untested gap in the western extension of the East Gouldie deposit also intersected significant results, with hole MEX24-312 returning 2.5 g/t gold over 30.0 metres at 1,473 metres depth, 85 metres west of the East Gouldie mineral reserves; and hole MEX24-312Z returning 2.2 g/t gold over 10.5 metres at 1,414 metres depth, 260 metres west of the mineral reserves. These results are anticipated to have a positive impact on the mineral resource estimate at year-end 2024.
At a shallower depth, hole MEX24-314 intersected 2.8 g/t gold over 11.4 metres at 335 metres depth, including 9.8 g/t gold over 2.0 metres at 329 metres depth, in a potential extension of the
Selected recent drill intercepts from the East Gouldie and
Drill hole | Deposit | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) | Gold grade (g/t) (capped)* |
MEX23-310ZA | East Gouldie | 1,928.1 | 1,945.4 | 1,694 | 15.3 | 2.3 | 2.3 |
MEX24-311 | East Gouldie | 1,890.5 | 1,897.5 | 1,571 | 6.5 | 4.5 | 4.5 |
MEX24-311Z | East Gouldie | 1,971.3 | 1,975.7 | 1,687 | 3.8 | 8.7 | 8.7 |
MEX24-312 | East Gouldie | 1,634.0 | 1,666.4 | 1,473 | 30.0 | 2.5 | 2.5 |
MEX24-312Z | East Gouldie | 1,626.8 | 1,638.0 | 1,414 | 10.5 | 2.2 | 2.2 |
MEX24-314 | 421.0 | 441.0 | 335 | 11.4 | 2.8 | 2.8 | |
including | 421.0 | 424.5 | 329 | 2.0 | 9.8 | 9.8 |
*Results from East Gouldie and |
[Odyssey mine – Composite Longitudinal Section]
Based on the positive results from the exploration program near the Odyssey mine during the first half of 2024, the Company has approved a supplemental exploration budget of
In addition, the regional exploration program at Canadian Malartic is receiving a supplemental exploration budget of
These supplemental budgets are in addition to the Company's previously disclosed exploration budget for 2024 at Canadian Malartic of approximately
Detour Lake
On June 19, 2024, the Company released the results of a technical study reflecting the potential for a concurrent underground operation to accelerate access to higher grade ore and to increase annual production to approximately one million ounces for 14 years starting in 2030 (see the Company's news release dated June 19, 2024).
The technical study assumed an underground mining rate of approximately 11,200 tpd (equivalent to 4.0 million tonnes per annum ("Mtpa")) starting in 2030, combined with a mill expansion to 79,450 tpd (equivalent to 29 Mtpa) starting in 2028. Annual production is expected to increase by approximately
Based on strong risk-adjusted returns for the Detour Lake underground project, the Company has approved a
Exploration drilling at Detour Lake during the second quarter of 2024 totalled 72,000 metres (130,000 metres during the first half of 2024), including infill drilling into the newly defined high-grade corridor at underground depths in the West Pit zone and infill drilling into the West Pit Extension zone at underground depths immediately west of the West Pit mineral resources and next to the proposed exploration ramp for the underground project.
In the high-grade corridor in the West Pit zone, highlights included: hole DLM24-843 returning 4.0 g/t gold over 22.3 metres at 413 metres depth, including 18.7 g/t gold over 2.1 metres at 414 metres depth; hole DLM24-874 returning 2.5 g/t gold over 10.3 metres at 291 metres depth and 4.4 g/t gold over 30.1 metres at 550 metres depth, including 17.6 g/t gold over 3.9 metres at 557 metres depth; and hole DLM24-897E returning 26.9 g/t gold over 2.8 metres at 235 metres depth and 3.3 g/t gold over 11.1 metres at 261 metres depth.
To the west in the West Pit zone near the proposed exploration ramp, highlights included: hole DLM24-873 returning 37.3 g/t gold over 3.5 metres at 282 metres depth; and hole DLM24-930A returning 20.6 g/t gold over 5.5 metres at 280 metres depth and 1.8 g/t gold over 60.5 metres at 348 metres depth.
From infill drilling into the West Pit Extension zone, highlights included: hole DLM24-884 returning 4.3 g/t gold over 22.5 metres at 429 metres depth, including 24.5 g/t gold over 3.5 metres at 432 metres depth, and 3.7 g/t gold over 13.4 metres at 551 metres depth; hole DLM24-895AW returning 28.8 g/t gold over 3.6 metres at 570 metres depth; and hole DLM24-873 returning 37.3 g/t gold over 3.5 metres at 282 metres depth.
Selected recent drill intercepts from the West Pit Underground and West Pit Extension zones at Detour Lake are set out in the table and composite longitudinal section below.
Drill hole | Zone | From (metres) | To (metres) | Depth of midpoint | Estimated true width (metres) | Gold grade (g/t) |
DLM24-839 | West Pit Extension | 353.0 | 362.0 | 321 | 7.2 | 5.2 |
and | West Pit Extension | 395.0 | 419.4 | 365 | 19.6 | 3.9 |
including | 398.0 | 402.0 | 358 | 3.2 | 12.6 | |
DLM24-843 | West Pit Underground | 505.8 | 530.3 | 413 | 22.3 | 4.0 |
including | 519.2 | 521.5 | 414 | 2.1 | 18.7 | |
DLM24-851 | West Pit Extension | 350.0 | 392.3 | 318 | 36.1 | 2.6 |
including | 375.3 | 378.7 | 323 | 2.9 | 23.5 | |
DLM24-855 | West Pit Extension | 481.9 | 509.0 | 433 | 22.8 | 2.4 |
including | 486.0 | 495.0 | 429 | 7.6 | 5.1 | |
DLM24-860 | West Pit Extension | 583.9 | 619.0 | 524 | 30.2 | 2.2 |
including | 583.9 | 598.0 | 515 | 12.1 | 4.4 | |
DLM24-870 | West Pit Underground | 207.6 | 228.0 | 182 | 17.7 | 3.3 |
including | 221.1 | 225.0 | 186 | 3.4 | 11.0 | |
DLM24-871 | West Pit Underground | 378.5 | 396.0 | 313 | 15.6 | 4.7 |
including | 378.5 | 383.6 | 309 | 4.5 | 13.6 | |
DLM24-873 | West Pit Underground | 346.1 | 350.0 | 282 | 3.5 | 37.3 |
DLM24-874 | West Pit Underground | 385.0 | 396.0 | 291 | 10.3 | 2.5 |
and | 764.0 | 795.0 | 550 | 30.1 | 4.4 | |
including | 789.0 | 793.0 | 557 | 3.9 | 17.6 | |
DLM24-884 | West Pit Underground | 526.3 | 551.0 | 429 | 22.5 | 4.3 |
including | 540.6 | 544.4 | 432 | 3.5 | 24.5 | |
and | West Pit Underground | 696.0 | 710.5 | 551 | 13.4 | 3.7 |
DLM24-891C | West Pit Underground | 635.0 | 662.0 | 562 | 23.4 | 1.7 |
including | 650.8 | 662.0 | 569 | 9.7 | 3.4 | |
DLM24-895AW | West Pit Extension | 676.0 | 680.0 | 570 | 3.6 | 28.8 |
DLM24-897E | West Pit Underground | 305.0 | 308.0 | 235 | 2.8 | 26.9 |
and | West Pit Underground | 336.0 | 348.0 | 261 | 11.1 | 3.3 |
DLM24-899A | West Pit Extension | 578.0 | 595.9 | 495 | 15.8 | 4.4 |
DLM24-903 | West Pit Extension | 403.0 | 418.0 | 344 | 13.2 | 3.6 |
and | 438.0 | 446.8 | 369 | 7.8 | 12.8 | |
DLM24-908E | West Pit Underground | 727.0 | 775.0 | 576 | 45.6 | 2.1 |
including | 764.0 | 774.0 | 589 | 9.5 | 6.5 | |
and | West Pit Underground | 791.0 | 819.0 | 613 | 26.7 | 2.1 |
including | 800.0 | 808.0 | 612 | 7.6 | 5.5 | |
DLM24-911A | West Pit Extension | 722.3 | 750.2 | 636 | 24.6 | 2.4 |
including | 730.9 | 734.0 | 633 | 2.7 | 13.9 | |
and | West Pit Extension | 761.0 | 792.0 | 668 | 27.4 | 2.4 |
including | 779.8 | 782.9 | 672 | 2.7 | 16.8 | |
and | West Pit Extension | 827.6 | 835.0 | 711 | 6.6 | 9.5 |
DLM24-916W | West Pit Extension | 460.7 | 498.1 | 408 | 32.2 | 3.2 |
including | 486.8 | 491.7 | 416 | 4.2 | 12.8 | |
DLM24-923 | West Pit Extension | 603.4 | 630.0 | 520 | 23.2 | 3.3 |
including | 603.4 | 606.5 | 520 | 2.7 | 17.4 | |
DLM24-927 | West Pit Extension | 445.8 | 450.7 | 375 | 4.3 | 15.7 |
DLM24-930A | West Pit Underground | 349.0 | 355.0 | 280 | 5.5 | 20.6 |
and | West Pit Underground | 411.0 | 476.4 | 348 | 60.5 | 1.8 |
*Results from Detour Lake are uncapped. |
[Detour Lake – Composite Longitudinal Section]
Further details on the mine-site and regional exploration programs at Detour Lake in 2024 are set out in the Detour Lake-focused news release dated June 19, 2024.
With the success of the exploration program at Detour Lake during the first half of the year, the Company has approved a supplemental exploration budget of
Hope Bay – Step-Out Drilling Continues to Extend Madrid's High-Grade Patch 7 Zone at Depth and Laterally
Exploration drilling at Hope Bay during the second quarter of 2024 totalled 35,400 metres (66,100 metres during the first half of 2024) and continued to return strong results at the
Infill drilling into the high-grade shoot immediately north of the Patch 7 mineral resource was highlighted by hole HBM24-206A returning 26.7 g/t gold over 2.8 metres at 405 metres depth, including 75.0 g/t gold over 0.9 metres at 404 metres depth, and 17.0 g/t gold over 25.8 metres at 419 metres depth, including 35.6 g/t gold over 6.5 metres at 412 metres depth; hole HBM24-207 returning 7.2 g/t gold over 8.1 metres at 559 metres depth, including 8.7 g/t gold over 4.5 metres at 558 metres depth; and hole HBM24-209 returning 30.8 g/t gold over 2.4 metres at 559 metres depth.
The high-grade shoot remains open both up-plunge and down-plunge with significant potential for mineral resource expansion.
This emerging new mineralized area continues to show excellent continuity as well as grades and thicknesses greater than average for the
At shallower depths in the same area of Patch 7, hole HBM24-191 returned 9.7 g/t gold over 6.3 metres at 242 metres depth and hole HBM24-201 returned 5.3 g/t gold over 18.0 metres at 278 metres depth. Drilling in this shallower area is confirming the presence of the same structures and favourable host rocks encountered in the main Patch 7 mineral resources located several hundred metres to the south.
Exploration during the second quarter also included widely spaced, expansion drilling at greater depth approximately 600 metres to the north in the largely untested gap area between the Patch 7 and Suluk zones, highlighted by hole HBM24-177B returning 9.5 g/t gold over 8.6 metres at 750 metres depth, including 15.5 g/t gold over 3.7 metres at 753 metres depth; and hole HBM24-183 returning 14.1 g/t gold over 5.0 metres at 577 metres depth, including 25.1 g/t gold over 2.3 metres at 575 metres depth.
Selected recent drill intercepts from the Patch 7 zone at the
Drill hole | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped)* |
HBM24-177B | 864.5 | 883.8 | 750 | 8.6 | 9.5 | 9.5 |
including | 873.9 | 882.0 | 753 | 3.7 | 15.5 | 15.5 |
HBM24-183 | 684.4 | 693.5 | 577 | 5.0 | 19.0 | 14.1 |
including | 684.4 | 688.6 | 575 | 2.3 | 35.8 | 25.1 |
HBM24-188 | 609.4 | 633.6 | 475 | 15.2 | 5.6 | 5.6 |
including | 611.0 | 620.0 | 471 | 5.7 | 4.6 | 4.6 |
including | 626.0 | 633.6 | 481 | 4.8 | 10.9 | 10.9 |
HBM24-189 | 552.3 | 581.8 | 443 | 12.7 | 6.0 | 6.0 |
including | 552.3 | 575.2 | 441 | 9.9 | 6.9 | 6.9 |
HBM24-191 | 289.1 | 297.0 | 242 | 6.3 | 9.7 | 9.7 |
HBM24-201 | 357.0 | 375.0 | 278 | 18.0 | 10.8 | 5.3 |
HBM24-206A | 529.0 | 532.0 | 405 | 2.8 | 28.0 | 26.7 |
including | 529.0 | 530.0 | 404 | 0.9 | 79.0 | 75.0 |
and | 539.1 | 566.0 | 419 | 25.8 | 20.8 | 17.0 |
including | 539.1 | 546.0 | 412 | 6.5 | 50.7 | 35.6 |
HBM24-207 | 634.8 | 651.0 | 559 | 8.1 | 7.2 | 7.2 |
including | 637.1 | 646.1 | 558 | 4.5 | 8.7 | 8.7 |
HBM24-209 | 643.0 | 646.0 | 559 | 2.4 | 53.7 | 30.8 |
*Results from the |
[Madrid Deposit at Hope Bay – Composite Longitudinal Section]
Given the positive drill results at
In early July, the Company finalized an asset purchase agreement with North Arrow Minerals Inc. to acquire a
San Nicolás Copper Project
In the second quarter of 2024, Minas de San Nicolás continued engagement with government and stakeholders in support of the permit review and continued to advance feasibility study work, with plans to initiate detailed engineering in the first half of 2025. The Minas de San Nicolás team submitted the change of land use permit application ("ETJ") on June 14, 2024 and a Supplementary Information Package in response to the regulator's enquiries on their MIA-R permit application ("EIA") on July 5, 2024. Project approval is expected to follow, subject to receipt of permits and the results of the feasibility study.
ABITIBI REGION,
LaRonde – Strong Operational Performance Driven by Higher Grades; Automation Initiatives at LaRonde Zone 5 Continue to Exceed Targets
LaRonde – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 680 | 660 | 1,360 | 1,368 | ||||
Tonnes of ore milled per day | 7,473 | 7,253 | 7,473 | 7,558 | ||||
Gold grade (g/t) | 4.05 | 3.82 | 3.73 | 3.77 | ||||
Gold production (ounces) | 82,334 | 76,780 | 150,698 | 156,387 | ||||
Production costs per tonne (C$) | $ 128 | $ 174 | $ 158 | $ 145 | ||||
Minesite costs per tonne (C$) 15 | $ 157 | $ 151 | $ 157 | $ 154 | ||||
Production costs per ounce | $ 775 | $ 1,117 | $ 1,051 | $ 944 | ||||
Total cash costs per ounce | $ 816 | $ 884 | $ 929 | $ 922 | ||||
Gold Production
- Second Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to a higher volume of ore mined and milled driven by strong operational performance and higher gold grades as expected under the mining sequence, partially offset by lower recovery
- First Six Months of 2024 – Gold production decreased when compared to the prior-year period due to lower gold grades and a lower volume of ore milled
Production Costs
- Second Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period primarily due to the higher volume of ore milled in the current period, partially offset by the timing of inventory sales and higher milling and royalty costs at the LaRonde mine. Production costs per ounce decreased when compared to the prior-year period primarily due to higher gold grades and lower production costs per tonne
- First Six Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to stockpile consumption, the timing of inventory sales, higher milling and royalty costs at the LaRonde mine and lower volumes of ore milled. Production costs per ounce increased when compared to the prior-year period primarily due to higher production costs per tonne and lower gold grades
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period primarily due to higher milling and royalty costs at the LaRonde mine, partially offset by higher volume of ore milled. Total cash costs per ounce decreased when compared to the prior-year period primarily due to higher gold grades, partially offset by higher minesite costs per tonne
- First Six Months of 2024 – Minesite costs per tonne increased when compared to the prior-year period primarily due to stockpile consumption and higher milling and royalty costs and lower volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period primarily due to lower gold grades and higher minesite costs per tonne
_______________________________ |
15 Minesite costs per tonne is a non-GAAP measure that is not standardized under IFRS and is reported on a per tonne of ore milled basis. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to production costs see "Note Regarding Certain Measures of Performance" below. |
Highlights
- Gold production in the quarter was higher than forecast as a result of higher grades and higher volume milled
- The Company continued its automation initiatives at the LaRonde zone 5 mine ("LZ5") and exceeded its automation target by
22% . Approximately 1,800 tpd were moved during the quarter through automated scoops and trucks, which contributed to the strong overall performance of the site at an average 3,450 tpd - The LZ5 processing facility was placed on care and maintenance during the third quarter of 2023 and is on track to restart in the third quarter of 2024. During the downtime, the Company continues to overhaul the facility's leach tanks and is refurbishing the ore silo. Ore from LZ5 will continue to be processed at the LaRonde mill until the restart of the LZ5 processing facility
- A shutdown was scheduled for the third quarter of 2024 for 14 days at the LaRonde mine and 11 days at the LaRonde mill and was completed in July
- On June 24, 2024, a seismic event of magnitude 4.1 on the Richter scale, occurred at the LaRonde mine. Safety protocols were followed, the mine was evacuated and no workers were injured. The dynamic ground support performed as designed. While the mine was shutdown for approximately two days, the mill continued to operate at normal levels using surface stockpiles. Site-specific expertise in mitigating seismic risk has been developed by the Company over many years of operations at LaRonde. The Company's objective remains to address the seismic risk by continuously improving mitigation measures to keep a safe work environment while maintaining reasonable production rates. These mitigation measures include non-entry protocols, dynamic ground support and, increasingly, remote operation from surface
- At the LaRonde mill, the focus remained on improving mill recoveries by optimizing the blending of ore from the LaRonde mine, 11-3 zone, LZ5, Goldex and Akasaba West
- During the quarter, LaRonde was recognized for environmental and social performance, receiving the following awards:
- TSM Excellence Award from the Mining Association of
Canada for the transition to filtered tailings management – this award acknowledges innovative projects and initiatives that support sustainable development - Community relations award from the Quebec Mining Association ("QMA") – recognition of the collaboration agreement with the Abitibiwinni First Nations and the Nikan Project, which facilitates integration and retention of Indigenous workers
- TSM Excellence Award from the Mining Association of
Canadian
Canadian | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 5,182 | 4,882 | 10,355 | 9,406 | ||||
Tonnes of ore milled per day | 56,945 | 53,648 | 56,896 | 51,967 | ||||
Gold grade (g/t) | 1.17 | 1.22 | 1.19 | 1.21 | ||||
Gold production* (ounces) | 180,871 | 177,755 | 367,777 | 258,440 | ||||
Production costs per tonne (C$) | $ 38 | $ 40 | $ 35 | $ 38 | ||||
Minesite costs per tonne (C$) | $ 42 | $ 39 | $ 42 | $ 39 | ||||
Production costs per ounce | $ 798 | $ 811 | $ 737 | $ 780 | ||||
Total cash costs per ounce | $ 871 | $ 772 | $ 860 | $ 779 | ||||
* Gold production reflects Agnico Eagle's |
Gold Production
- Second Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput resulting from strong operational performance at the Barnat pit and Odyssey mine, partially offset by lower gold grades from increased ore sourced from the low-grade stockpile
- First Six Months of 2024 – Gold production increased when compared to the prior-year period due to the increase in the Company's ownership percentage between periods from
50% to100% as a result of the closing of the acquisition of the Yamana Transaction and higher throughput, partially offset by lower gold grades resulting from increased ore sourced from the low-grade stockpile
Production Costs
- Second Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period primarily due to a higher volume of ore milled and the timing of inventory adjustments during the comparative period. Production costs per ounce decreased when compared to the prior-year period due to more ounces of gold produced in the current period
- First Six Months of 2024 – Production costs per tonne decreased when compared to the prior-year period primarily due to a higher volume of ore milled and the timing of inventory adjustments during the comparative period. Production costs per ounce decreased when compared to the prior-year period due to lower production costs per tonne, partially offset by lower gold grades in the current period
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the milling of low-grade stockpiles and higher royalty costs during the quarter, partially offset by higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period primarily due to the same factors that resulted in higher minesite costs per tonne and lower gold grades in the current period
- First Six Months of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the consumption of low-grade stockpiles and higher royalty costs, partially offset by higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period primarily due to the same factors that resulted in higher minesite costs per tonne and lower gold grades in the current period
Highlights
- Higher mill throughput, higher gold grades from the Barnat pit due to mine sequencing and higher mill recoveries than planned, along with the record production from Odyssey, resulted in better than planned quarterly gold production at Canadian Malartic
- At Odyssey South, total metres developed during the quarter were a record at 3,870 metres. Gold production and mining rate were above plan at approximately 22,300 ounces of gold and 3,750 tpd, respectively. The strong operational performance was supported by higher than planned equipment availability and the addition of 65 tonne haulage trucks
- Stope reconciliation at Odyssey South remains positive, primarily from the contribution of the internal zones, which resulted in approximately
13% more ounces of gold produced than anticipated during the second quarter - At the Canadian Malartic pit, the Company continued the construction of the central berm (approximately
95% complete at June 30, 2024) in preparation for in-pit tailings disposal, which began in July 2024 - An extended shutdown at the Canadian Malartic mill is planned for the third quarter of 2024 totalling 10 days (approximately an additional 5 days from the original plan) due to the acceleration of maintenance work on the tailings thickener drive assembly
- An update on the Odyssey mine development, construction and exploration highlights is set out in the Update on Key Value Drivers and Pipeline Projects section above
- During the quarter, Canadian Malartic was recognized for its health and safety performance and received the following awards:
- John T. Ryan Eastern Canada Regional Safety award from the Canadian Institute of Mining, Metallurgy and Petroleum – awarded to an open pit mine which experienced the lowest reportable injury frequency in the previous year
- F.J. O'
Connell surface operations award from the QMA – recognizing workplace health and safety performance of QMA members
Goldex – Record Tonnage Milled Since Re-Start in 2013; Production from Deep 2 Zone Commenced
Goldex Complex – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 765 | 761 | 1,525 | 1,459 | ||||
Tonnes of ore milled per day | 8,407 | 8,363 | 8,379 | 8,061 | ||||
Gold grade (g/t) | 1.62 | 1.74 | 1.63 | 1.74 | ||||
Gold production (ounces) | 33,750 | 37,716 | 68,138 | 71,739 | ||||
Production costs per tonne (C$) | $ 59 | $ 50 | $ 59 | $ 52 | ||||
Minesite costs per tonne (C$) | $ 60 | $ 51 | $ 60 | $ 51 | ||||
Production costs per ounce | $ 980 | $ 747 | $ 973 | $ 781 | ||||
Total cash costs per ounce | $ 864 | $ 776 | $ 906 | $ 792 | ||||
Gold Production
- Second Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower average gold grades resulting from increased ore sourced from Akasaba West
- First Six Months of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower average gold grades resulting from increased ore sourced from Akasaba West, partially offset by a higher volume of ore processed
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs per tonne increased when compared to the prior-year periods primarily due to higher underground production costs, higher open pit mining costs, higher milling costs and a lower deferred stripping adjustment associated with the Akasaba West project, partially offset by higher volume of ore milled. Production costs per ounce increased when compared to the prior-year periods due to the same factors that resulted in higher production costs per tonne and lower gold grades
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs per tonne increased when compared to the prior-year periods due to the same reasons outlined above for the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year periods due to the same reasons outlined above for the higher production costs per ounce
Highlights
- Solid gold production during the quarter was driven by record mill throughput since the re-start of Goldex operations in 2013, including record throughput in May of approximately 289,000 tonnes milled
- Development of the Deep 2 zone continued to advance as planned during the quarter and began initial production in June 2024
- During the quarter, Goldex was recognized for its health and safety performance and received the following awards:
- John T. Ryan National award from the Canadian Institute of Mining, Metallurgy and Petroleum – awarded to a metal mine which experienced the lowest reportable injury frequency in the previous year
- F.J. O'
Connell award for underground operations from the QMA – recognizing the workplace health and safety performance of QMA members
ABITIBI REGION,
Detour Lake – Mill Throughput Improved Quarter-over-Quarter; Pathway to One Million Ounces Provided in June
Detour Lake – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 6,792 | 6,800 | 13,294 | 13,197 | ||||
Tonnes of ore milled per day | 74,637 | 74,725 | 73,044 | 72,912 | ||||
Gold grade (g/t) | 0.86 | 0.85 | 0.84 | 0.85 | ||||
Gold production (ounces) | 168,247 | 169,352 | 318,998 | 331,209 | ||||
Production costs per tonne (C$) | $ 24 | $ 22 | $ 26 | $ 23 | ||||
Minesite costs per tonne (C$) | $ 26 | $ 26 | $ 27 | $ 26 | ||||
Production costs per ounce | $ 715 | $ 666 | $ 791 | $ 685 | ||||
Total cash costs per ounce | $ 791 | $ 731 | $ 829 | $ 750 | ||||
Gold Production
- Second Quarter of 2024 – Gold production decreased slightly when compared to the prior-year period primarily due to lower metallurgical recovery as a result of lower grinding efficiency related to the change in grinding media during the quarter, partially offset by higher gold grades
- First Six Months of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower metallurgical recovery, mainly due to abnormal chipping of grinding media affecting grinding efficiency and lower gold grades, partially offset by higher throughput
Production Costs
- Second Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher milling costs as a result of the change in grinding media in the SAG mill and higher mining costs, partially offset by stockpile build-up in the current period. Production costs per ounce increased when compared to the prior-year period due to the higher production costs per tonne, partially offset by the higher gold grades
- First Six Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher milling costs as a result of the change in grinding media in the SAG mill and higher mining costs, partially offset by stockpile build-up in the current period and by higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same factors resulting in higher production costs per tonne and lower gold grades
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne remained unchanged when compared to the prior-year period. Total cash costs per ounce increased when compared to the prior-year period due to lower metallurgical recovery, partially offset by higher gold grades
- First Six Months of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above that resulted in higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above that resulted in higher production costs per ounce
Highlights
- The mill throughput rate of 74,637 tpd in the second quarter of 2024 increased when compared to the first quarter primarily due to the replacement of the defective grinding media in the SAG mill and record quarterly mill availability of
93.0% . The installation of new instrumentation in the SAG mill to optimize the load balance between the SAG mills and ball mills contributed to achieving monthly throughput performance in June 2024 of 81,324 tpd. Other initiatives that are expected to help reach the targeted rate of 76,700 tpd by the end of 2024 include the installation of a new ball mill discharge grizzly, a SAG discharge box upgrade in one of the lines and installation of variable speed drive to the secondary crushers - Phase 2 of the open pit was completed in the second quarter of 2024. Assembly of the new Komatsu rope shovel was approximately
80% complete as at June 30, 2024, with commissioning expected in the third quarter of 2024. The new rope shovel is expected to add increased capacity required per the life of mine plan and will replace a diesel shovel of lower capacity - Metallurgical recovery remained below plan in the second quarter of 2024 as a result of lower grinding efficiency related to the change in grinding media. The Company continues to work with its suppliers to optimize the grinding efficiency in the SAG mill and has scheduled further tests of new grinding media in the third quarter of 2024
- The expansion of the mine maintenance shop to support increased mining rates and a larger production fleet is ongoing. The new mining service facility is expected to be completed in 2025
- An upgrade of the 230kV main substation is planned to improve the power quality at the mine and improve the site readiness for potential projects such as the Detour Lake underground and mill expansion. The engineering was completed and all long lead items were ordered in the second quarter of 2024. The upgrades related to power quality are expected to be completed in 2024 and those related to improving site readiness for future projects are expected in 2025
- An update on the underground project study and exploration results is set out in the Update on Key Value Drivers and Pipeline Projects section above
Macassa – Consecutive Quarters of Record Mill Throughput; Continued Productivity Improvements from Workforce Ramp-Up and Equipment Availability
Macassa – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 152 | 112 | 286 | 199 | ||||
Tonnes of ore milled per day | 1,670 | 1,231 | 1,571 | 1,099 | ||||
Gold grade (g/t) | 13.44 | 16.16 | 14.77 | 19.29 | ||||
Gold production (ounces) | 64,062 | 57,044 | 132,321 | 121,159 | ||||
Production costs per tonne (C$) | $ 459 | $ 464 | $ 470 | $ 519 | ||||
Minesite costs per tonne (C$) | $ 476 | $ 503 | $ 484 | $ 539 | ||||
Production costs per ounce | $ 797 | $ 676 | $ 746 | $ 631 | ||||
Total cash costs per ounce | $ 833 | $ 747 | $ 770 | $ 672 | ||||
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production increased when compared to the prior-year periods primarily due to higher throughput as a result of productivity gains resulting from new ventilation infrastructure, improved equipment availability and the addition of ore sourced from the Near Surface deposit, partially offset by lower gold grades related to the addition of ore sourced from the Near Surface deposit
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs per tonne decreased when compared to the prior-year periods due to the higher volume of ore milled in the current periods, partially offset by higher underground development and mining costs. Production costs per ounce increased when compared to the prior-year periods due to lower gold grades and higher underground development and mining costs
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year periods due to the same reasons outlined above that resulted in lower production costs per tonne. Total cash costs per ounce increased when compared to the prior-year periods due to the same reasons outlined above that resulted in the higher production costs per ounce
Highlights
- Macassa recorded its best quarterly safety performance since the merger between Agnico Eagle and Kirkland Lake Gold. The Macassa mine rescue team won first place in the Kirkland Lake District Competition and in the Ontario Provincial Mine Rescue Competition
- During the second quarter of 2024, Macassa continued to demonstrate sustained productivity gains with record quarterly volume skipped and record quarterly mill throughput. Gold grades were lower than plan primarily due to processing more ore from the lower grade Near Surface deposit
- At the Portal (ramp access to the Near Surface and AK deposits), production from long hole stopes in the Near Surface deposit continued in the second quarter of 2024, with volume of ore mined and milled exceeding planned targets
- Construction of the new paste plant was
50% complete as at June 30, 2024, and is on schedule for commissioning in the first half of 2025
Meliadine – Solid Quarterly Performance Despite Earlier than Planned Caribou Migration; Phase 2 Mill Expansion Complete
Meliadine – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 421 | 461 | 917 | 937 | ||||
Tonnes of ore milled per day | 4,626 | 5,066 | 5,038 | 5,177 | ||||
Gold grade (g/t) | 6.79 | 6.14 | 6.49 | 6.13 | ||||
Gold production (ounces) | 88,675 | 87,682 | 184,400 | 178,149 | ||||
Production costs per tonne (C$) | $ 278 | $ 230 | $ 265 | $ 229 | ||||
Minesite costs per tonne (C$) | $ 254 | $ 261 | $ 249 | $ 250 | ||||
Production costs per ounce | $ 969 | $ 899 | $ 973 | $ 898 | ||||
Total cash costs per ounce | $ 892 | $ 1,019 | $ 918 | $ 978 | ||||
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production increased when compared to the prior-year periods primarily due to higher gold grades as expected under the planned the mining sequence, partially offset by lower throughput
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs per tonne increased when compared to the prior-year periods primarily due to the timing of inventory sales, higher underground services and royalty costs and a lower volume of ore milled in the current periods, partially offset by the buildup of stockpiles. Production costs per ounce increased when compared to the prior-year periods due to the same reasons that resulted in higher production costs per tonne, partially offset by higher gold grades in the current periods
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year period primarily due to the buildup in stockpiles, partially offset by the lower volume of ore milled. Total cash costs per ounce decreased when compared to the prior-year period primarily due to higher gold grades and the same reasons that resulted in lower minesite costs per tonne
Highlights
- Gold production during the quarter was slightly affected by lower throughput as a result of an earlier than anticipated caribou migration period. Given the operational downtime due to the migration, the Company took the opportunity to rehabilitate the underground ramp during this period. The Company is adapting its Caribou Readiness Plan, which includes earlier deployment of sea can barriers, crushing of ore stockpiles, and stocking of surface and underground materials, to further mitigate the impact of early caribou migration in future years
- The mill expansion project was completed during the second quarter and commissioning is expected in the third quarter of 2024. Throughput at the mill is expected to ramp up to 6,000 tpd by year-end 2024
- During the first quarter of 2024, the Company submitted a proposal to the Nunavut Water Board to amend the current Type A Water license to include tailings, water and waste management infrastructure at the Pump, F-zone, Wesmeg and Discovery deposits. A technical meeting with the Nunavut Water Board and meetings with the community took place during the second quarter of 2024. Public hearings are expected to take place in the third quarter of 2024. The Company now expects permits to be received in the first quarter of 2025
- During the quarter, Meliadine was recognized for its health and safety performance and received the John T. Ryan Regional award from the Canadian Institute of Mining, Metallurgy and Petroleum for the second consecutive year – awarded to a metal mine for the Prairie Provinces and Territories which experienced the lowest reportable injury frequency in the previous year
Meadowbank – Higher Grades and Record Ore Hauling at the Underground Operations Drive Production
Meadowbank Complex – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 990 | 845 | 2,061 | 1,828 | ||||
Tonnes of ore milled per day | 10,879 | 9,286 | 11,324 | 10,099 | ||||
Gold grade (g/t) | 4.36 | 3.79 | 4.22 | 3.85 | ||||
Gold production (ounces) | 126,419 | 94,775 | 254,193 | 205,885 | ||||
Production costs per tonne (C$) | $ 169 | $ 186 | $ 156 | $ 181 | ||||
Minesite costs per tonne (C$) | $ 160 | $ 178 | $ 155 | $ 176 | ||||
Production costs per ounce | $ 973 | $ 1,240 | $ 933 | $ 1,202 | ||||
Total cash costs per ounce | $ 922 | $ 1,156 | $ 930 | $ 1,144 | ||||
Gold Production
- Second Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as operations in the prior period were affected by unplanned mill shutdowns from the caribou migration, and higher gold grades as expected under the mine plan
- First Six Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as the comparative period was affected by unplanned downtime at the SAG mill and unplanned mill shutdowns from the caribou migration, and higher gold grades as expected under the mine plan
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs per tonne decreased when compared to the prior-year periods due to a higher volume of ore milled. Production costs per ounce decreased when compared to the prior-year periods primarily due to higher gold grades and lower production costs per tonne
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year periods due to the same reasons outlined above that resulted in the lower production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year periods due to the same reasons outlined above that resulted in the lower production costs per ounce
Highlights
- Gold production was higher than expected due to the operational performance at both the open pit and underground operations
- Open pit operation continued to deliver strong haulage performance during the second quarter of 2024, achieving a monthly record in June 2024 benefiting from both increased equipment availability and shorter cycle times
- The underground operation also had another strong quarter, setting quarterly performance records for hauling, production drilling and cemented rockfill in the second quarter of 2024. This was accomplished through continued productivity gains that demonstrated sustained improvement through the full mining cycle and increased adherence and compliance to plan
Three Months Ended | Six Months Ended | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 234 | 176 | 406 | 324 | ||||
Tonnes of ore milled per day | 2,571 | 1,934 | 2,231 | 1,790 | ||||
Gold grade (g/t) | 9.06 | 14.77 | 9.68 | 16.49 | ||||
Gold production (ounces) | 65,963 | 81,813 | 122,532 | 168,371 | ||||
Production costs per tonne (A$) | $ 237 | $ 308 | $ 264 | $ 335 | ||||
Minesite costs per tonne (A$) | $ 259 | $ 304 | $ 265 | $ 321 | ||||
Production costs per ounce | $ 558 | $ 438 | $ 575 | $ 430 | ||||
Total cash costs per ounce | $ 608 | $ 436 | $ 575 | $ 416 | ||||
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production decreased when compared to the prior-year periods primarily due to the lower gold grades from mine sequencing, partially offset by higher throughput
Production Costs
- Second Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period due to a higher volume of ore mined and milled, partially offset by higher mining costs associated with the extra volume, higher royalty costs and the build-up of stockpiles. Production costs per ounce increased when compared to the prior-year period due to lower gold production, partially offset by lower production costs per tonne and the weaker Australian dollar relative to the
U.S. dollar - First Six Months of 2024 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore mined and milled, partially offset by higher mining costs and higher royalty costs. Production costs per ounce increased when compared to the prior-year period due to lower gold production and the timing of inventory sales, partially offset by lower production costs per tonne and the weaker Australian dollar relative to the
U.S. dollar
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year periods due to a higher volume of ore mined and milled, partially offset by higher mining costs associated with the extra volume and higher royalty costs. Total cash costs per ounce increased when compared to the prior-year periods due to lower gold production, partially offset by lower minesite costs per tonne and the weaker Australian dollar relative to the
U.S. dollar
Highlights
- The Company continues to focus on productivity gains and cost control at the mine and the mill to maximize throughput and reduce unit costs as gold grades continue to decline with the depletion of the Swan zone. In the second quarter of 2024,
Fosterville set a quarterly record in ore mined at approximately 241,000 tonnes, driven by higher than planned development in ore at Robbins Hill andPhoenix . The Company also set a monthly record in mill throughput with approximately 101,000 tonnes processed in June Fosterville initiated a continuous improvement program leveraging work recently completed at Meadowbank and Meliadine and is focusing on further productivity gains at the mine and mill and on cost improvements. In the second quarter a diagnostic assessment and benchmark was completed highlighting stope cycle timing as an area of focus- The Company is currently advancing an upgrade of the primary ventilation system to sustain the mining rate in the Lower Phoenix zones in future years. In the second quarter of 2024, the Company continued the excavation of the ventilation raises and the project is progressing as planned at approximately
63% completion. The Company expects the project to be completed by early 2025
Kittila – Gold Production on Target Despite Challenges with Mill Recovery; Continuous Improvement Program Initiated
Kittila – Operating Statistics | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 524 | 417 | 1,006 | 913 | ||||
Tonnes of ore milled per day | 5,758 | 4,582 | 5,527 | 5,044 | ||||
Gold grade (g/t) | 4.07 | 4.42 | 4.19 | 4.59 | ||||
Gold production (ounces) | 55,671 | 50,130 | 110,252 | 113,822 | ||||
Production costs per tonne (EUR) | € 102 | € 101 | € 107 | € 100 | ||||
Minesite costs per tonne (EUR) | € 101 | € 104 | € 106 | € 101 | ||||
Production costs per ounce | $ 1,033 | $ 864 | $ 1,057 | $ 849 | ||||
Total cash costs per ounce | $ 1,020 | $ 899 | $ 1,044 | $ 847 | ||||
Gold Production
- Second Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as the mill operated through the current period compared to a planned 10-day autoclave shutdown in the prior-year period, partially offset by lower grades and recovery
- First Six Months of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower grades and recovery, partially offset by higher throughput
Production Costs
- Second Quarter of 2024 – Production costs per tonne increased slightly when compared to the prior-year period primarily due to the consumption of stockpiles in the current period compared to a build up of stockpiles in the prior-year period and higher underground mining and royalty costs, partially offset by lower mill maintenance costs in the current period. Production costs per ounce increased when compared to the prior-year period due to lower gold production and the same factors that resulted in higher production costs per tonne
- First Six Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to the milling of stockpiles in the current period compared to a build up of stockpiles in the prior-year period as well as higher underground mining and royalty costs, partially offset by a higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to lower gold production and higher production costs per tonne
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne decreased when compared to the prior-year period mainly due to the higher volume of ore milled in the current period, partially offset by higher underground mining and royalty costs. Total cash costs per ounce increased when compared to the prior-year period due to the lower gold production, partially offset by the same factors that resulted in lower minesite costs per tonne
- First Six Months of 2024 – Minesite costs per tonne increased when compared to the prior-year period primarily due to higher underground mining and royalty costs, partially offset by higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period due to lower gold production and the same factors that resulted in higher minesite costs per tonne
Highlights
- Mill throughput remained on target in the second quarter of 2024, however, recovery continued to be lower than planned due to high carbon and sulphur content in the ore which affected gold production. Test trials with carbon depressant were conducted in the quarter with inconsistent results. Mineralogical modelling is ongoing and further tests will be conducted in the third quarter of 2024
- Kittila initiated a continuous improvement program leveraging work recently completed at Meadowbank and Meliadine and is focusing on mine productivity gains and cost improvements. In the second quarter a diagnostic assessment and benchmark was completed
Three Months Ended | Six Months Ended | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 454 | 401 | 880 | 765 | ||||
Tonnes of ore milled per day | 4,989 | 4,407 | 4,835 | 4,227 | ||||
Gold grade (g/t) | 1.70 | 1.80 | 1.79 | 1.97 | ||||
Gold production (ounces) | 23,754 | 22,159 | 48,479 | 46,293 | ||||
Production costs per tonne | $ 95 | $ 87 | $ 87 | $ 88 | ||||
Minesite costs per tonne | $ 93 | $ 90 | $ 94 | $ 91 | ||||
Production costs per ounce | $ 1,815 | $ 1,566 | $ 1,578 | $ 1,461 | ||||
Total cash costs per ounce | $ 1,414 | $ 1,282 | $ 1,380 | $ 1,196 | ||||
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production increased when compared to the prior-year periods primarily due to higher throughput, partially offset by lower gold grades as expected under the planned mining sequence
Production Costs
- Second Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to a lower deferred stripping adjustment, partially offset by a higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period primarily due to the same factors that resulted in higher production costs per tonne and lower gold grades
- First Six Months of 2024 – Production costs per tonne decreased when compared to the prior-year period primarily due to a higher volume of ore milled, partially offset by a lower deferred stripping adjustment in the current period. Production costs per ounce increased when compared to the prior-year period primarily due to lower gold grades, partially offset by the same factors that resulted in lower production costs per tonne
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above that resulted in higher production costs per ounce
- First Six Months of 2024 – Minesite costs per tonne increased when compared to the prior-year period primarily due to higher inventory adjustments in the period, partially offset by higher volume of ore processed. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above that resulted in higher production costs per ounce and the stronger Mexican Peso relative to the
U.S. dollar
La
La | Three Months Ended | Six Months Ended | ||||||
2024 | 2023 | 2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | — | 880 | — | 1,540 | ||||
Tonnes of ore milled per day | — | 9,670 | — | 8,508 | ||||
Gold grade (g/t) | — | 0.74 | — | 0.72 | ||||
Gold production (ounces) | 6,079 | 17,833 | 16,661 | 34,154 | ||||
Production costs per tonne | $ — | $ 27 | $ — | $ 28 | ||||
Minesite costs per tonne | $ — | $ 28 | $ — | $ 30 | ||||
Production costs per ounce | $ 2,146 | $ 1,326 | $ 1,742 | $ 1,281 | ||||
Total cash costs per ounce | $ 2,171 | $ 1,385 | $ 1,715 | $ 1,348 | ||||
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production decreased when compared to the prior-year periods due to ceasing of mining operations at La India in the fourth quarter of 2023. Gold production in the current periods came only from residual leaching
Costs
- Second Quarter and First Six Months of 2024 – Production costs per ounce increased when compared to the prior-year periods driven primarily by the cessation of mining activities, partially offset by the strengthening of the Mexican Peso relative to the
U.S. dollar between periods - Second Quarter and First Six Months of 2024 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to fewer ounces of gold produced in the period
About Agnico Eagle
Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in
About this News Release
Unless otherwise stated, references to "LaRonde", "Canadian Malartic", "Meadowbank" and "Goldex" are to the Company's operations at the LaRonde complex, the Canadian Malartic complex, the Meadowbank complex and the Goldex complex, respectively. The LaRonde complex consists of the mill and processing operations at the LaRonde mine and the LaRonde zone 5 mine. The Canadian Malartic complex consists of the mill and processing operations at the Canadian Malartic mine and the Odyssey mine. The Meadowbank complex consists of the mill and processing operations at the Meadowbank mine and the Amaruq open pit and underground mines. The Goldex complex consists of the mill and processing operations at the Goldex mine and the Akasaba open pit mine. References to other operations are to the relevant mines, projects or properties, as applicable.
When used in this news release, the terms "including" and "such as" mean including and such as, without limitation.
The information contained on any website linked to or referred to herein (including the Company's website) is not part of this news release.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance measures and ratios, including "total cash costs per ounce", "minesite costs per tonne", "all-in sustaining costs per ounce", "adjusted net income", "adjusted net income per share", "cash provided by operating activities before changes in non-cash working capital balances", "cash provided by operating activities before changes in non-cash working capital balances per share", "EBITDA" which means earnings before interest, taxes, depreciation and amortization, "adjusted EBITDA", "free cash flow", "free cash flow before changes in non-cash working capital balances", "operating margin", "sustaining capital expenditures", "development capital expenditures" and "net debt", as well as, for certain of these measures their related per share ratios that are not standardized measures under IFRS. These measures may not be comparable to similar measures reported by other gold producers and should be considered together with other data prepared in accordance with IFRS. See below for a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS.
Total cash costs per ounce and minesite costs per tonne
Total cash costs per ounce is calculated on a per ounce of gold produced basis and 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). Total cash costs per ounce on a by-product basis is calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income for by-product revenues, inventory production costs, the impact of purchase price allocation in connection with mergers and acquisitions on 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
Total cash costs per ounce is intended to provide investors information about the cash-generating capabilities of the Company's mining operations. Management also uses these measures to, and believes they are useful to investors so investors can, understand and monitor the performance of the Company's mining operations. The Company believes that total cash costs per ounce is useful to help investors understand the costs associated with producing gold and the economics of gold mining. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce on a by-product basis measure allows management and investors to assess a mine's cash-generating capabilities at various gold prices. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne as these measures are not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
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.
Unless otherwise indicated, total cash costs per ounce is reported on a by-product basis. Total cash costs per ounce 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.
Minesite costs per tonne are calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income 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 can be affected by fluctuations in by–product metal prices and foreign exchange rates, management believes 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 and other data prepared in accordance with IFRS.
The following tables set out a reconciliation of total cash costs per ounce and minesite costs per tonne to production costs, exclusive of amortization, for the three and six months ended June 30, 2024 and June 30, 2023, 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 | ||||||
(thousands of | 2024 | 2023 | 2024 | 2023 | |||
LaRonde mine | $ 43,682 | $ 63,969 | $ 119,238 | $ 103,676 | |||
LaRonde zone 5 mine | 20,121 | 21,763 | 39,143 | 43,987 | |||
LaRonde complex | 63,803 | 85,732 | 158,381 | 147,663 | |||
Canadian | 144,333 | 144,190 | 270,909 | 201,481 | |||
Goldex | 33,084 | 28,160 | 66,266 | 55,995 | |||
Detour Lake | 120,302 | 112,796 | 252,207 | 226,818 | |||
Macassa | 51,029 | 38,545 | 98,677 | 76,504 | |||
Meliadine | 85,913 | 78,817 | 179,364 | 160,011 | |||
Meadowbank | 123,014 | 117,488 | 237,176 | 247,492 | |||
36,824 | 35,831 | 70,478 | 72,430 | ||||
Kittila | 57,529 | 43,336 | 116,567 | 96,631 | |||
43,109 | 34,709 | 76,516 | 67,631 | ||||
La | 13,044 | 23,649 | 29,028 | 43,741 | |||
Production costs per the condensed interim consolidated | $ 771,984 | $ 743,253 | $ 1,555,569 | $ 1,396,397 | |||
Reconciliation of Production Costs to Total Cash Costs per Ounce by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne by Mine | |||||||||||
(thousands of | |||||||||||
LaRonde mine (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 62,260 | 58,635 | 114,075 | 118,168 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 43,682 | $ 702 | $ 63,969 | $ 1,091 | $ 119,238 | $ 1,045 | $ 103,676 | $ 877 | |||
Inventory adjustments(ii) | 16,244 | 261 | (8,971) | (153) | 1,533 | 14 | 13,534 | 115 | |||
Realized gains and losses on | 351 | 5 | 770 | 13 | 370 | 3 | 1,848 | 16 | |||
Other adjustments(v) | 3,227 | 52 | 5,555 | 95 | 8,220 | 72 | 9,903 | 83 | |||
Total cash costs (co-product basis) | $ 63,504 | $ 1,020 | $ 61,323 | $ 1,046 | $ 129,361 | $ 1,134 | $ 128,961 | $ 1,091 | |||
By-product metal revenues | (17,016) | (273) | (15,157) | (259) | (29,606) | (260) | (29,689) | (251) | |||
Total cash costs (by-product basis) | $ 46,488 | $ 747 | $ 46,166 | $ 787 | $ 99,755 | $ 874 | $ 99,272 | $ 840 | |||
LaRonde mine (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 381 | 347 | 794 | 736 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 115 | $ 63,969 | $ 185 | $ 119,238 | $ 150 | $ 103,676 | $ 141 | ||||
Production costs (C$) | C$ 156 | C$ 247 | C$ 161,417 | C$ 203 | C$ 139,434 | C$ 189 | |||||
Inventory adjustments (C$)(iii) | 23,045 | 60 | (11,297) | (33) | 2,731 | 3 | 18,426 | 25 | |||
Other adjustments (C$)(v) | (3,264) | (8) | (3,302) | (8) | (3,600) | (4) | (6,443) | (8) | |||
Minesite costs (C$) | C$ 208 | C$ 206 | C$ 160,548 | C$ 202 | C$ 151,417 | C$ 206 | |||||
LaRonde zone 5 mine (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 20,074 | 18,145 | 36,623 | 38,219 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 20,121 | $ 1,002 | $ 21,763 | $ 1,199 | $ 39,143 | $ 1,069 | $ 43,987 | $ 1,151 | |||
Inventory adjustments(ii) | (252) | (12) | (784) | (43) | 68 | 2 | (261) | (7) | |||
Realized gains and losses on | 123 | 6 | 257 | 14 | 129 | 3 | 616 | 16 | |||
Other adjustments(v) | 996 | 50 | 775 | 43 | 1,366 | 37 | 1,111 | 29 | |||
Total cash costs (co-product basis) | $ 20,988 | $ 1,046 | $ 22,011 | $ 1,213 | $ 40,706 | $ 1,111 | $ 45,453 | $ 1,189 | |||
By-product metal revenues | (311) | (16) | (271) | (15) | (498) | (13) | (546) | (14) | |||
Total cash costs (by-product basis) | $ 20,677 | $ 1,030 | $ 21,740 | $ 1,198 | $ 40,208 | $ 1,098 | $ 44,907 | $ 1,175 | |||
LaRonde zone 5 mine (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 299 | 313 | 566 | 632 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 20,121 | $ 67 | $ 21,763 | $ 70 | $ 39,143 | $ 69 | $ 43,987 | $ 70 | |||
Production costs (C$) | C$ 93 | C$ 94 | C$ 94 | C$ 94 | |||||||
Inventory adjustments (C$)(iii) | (312) | (1) | (1,147) | (4) | 120 | — | (409) | (1) | |||
Minesite costs (C$) | C$ 92 | C$ 90 | C$ 94 | C$ 93 | |||||||
LaRonde complex (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 82,334 | 76,780 | 150,698 | 156,387 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 63,803 | $ 775 | $ 85,732 | $ 1,117 | $ 158,381 | $ 1,051 | $ 147,663 | $ 944 | |||
Inventory adjustments(ii) | 15,992 | 194 | (9,755) | (127) | 1,601 | 11 | 13,273 | 85 | |||
Realized gains and losses on | 474 | 6 | 1,027 | 13 | 499 | 3 | 2,464 | 16 | |||
Other adjustments(v) | 4,223 | 51 | 6,330 | 82 | 9,586 | 64 | 11,014 | 70 | |||
Total cash costs (co-product basis) | $ 84,492 | $ 1,026 | $ 83,334 | $ 1,085 | $ 170,067 | $ 1,129 | $ 174,414 | $ 1,115 | |||
By-product metal revenues | (17,327) | (210) | (15,428) | (201) | (30,104) | (200) | (30,235) | (193) | |||
Total cash costs (by-product basis) | $ 67,165 | $ 816 | $ 67,906 | $ 884 | $ 139,963 | $ 929 | $ 144,179 | $ 922 | |||
LaRonde complex (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | ||||||||||
Tonnes of ore milled (thousands) | 680 | 660 | 1,360 | 1,368 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 63,803 | $ 94 | $ 85,732 | $ 130 | $ 158,381 | $ 116 | $ 147,663 | $ 108 | |||
Production costs (C$) | C$ 128 | C$ 115,138 | C$ 174 | C$ 214,661 | C$ 158 | C$ 198,699 | C$ 145 | ||||
Inventory adjustments (C$)(iii) | 22,733 | 34 | (12,444) | (19) | 2,851 | 2 | 18,017 | 13 | |||
Other adjustments (C$)(v) | (3,264) | (5) | (3,302) | (4) | (3,600) | (3) | (6,443) | (4) | |||
Minesite costs (C$) | C$ 106,591 | C$ 157 | C$ 151 | C$ 213,912 | C$ 157 | C$ 210,273 | C$ 154 | ||||
Canadian (per ounce)(i) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 180,871 | 177,755 | 367,777 | 258,440 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 144,333 | $ 798 | $ 144,190 | $ 811 | $ 270,909 | $ 737 | $ 201,481 | $ 780 | |||
Inventory adjustments(ii) | (5,041) | (28) | 43 | — | 9,666 | 26 | 538 | 2 | |||
Realized gains and losses on | 988 | 6 | — | — | 1,040 | 3 | — | — | |||
Purchase price allocation to inventory(iv) | — | — | (22,821) | (128) | — | — | (22,821) | (88) | |||
In-kind royalties and other adjustments(v) | 19,533 | 108 | 17,835 | 100 | 39,023 | 106 | 25,217 | 97 | |||
Total cash costs (co-product basis) | $ 159,813 | $ 884 | $ 139,247 | $ 783 | $ 320,638 | $ 872 | $ 204,415 | $ 791 | |||
By-product metal revenues | (2,216) | (13) | (2,069) | (11) | (4,168) | (12) | (3,207) | (12) | |||
Total cash costs (by-product basis) | $ 157,597 | $ 871 | $ 137,178 | $ 772 | $ 316,470 | $ 860 | $ 201,208 | $ 779 | |||
Canadian (per tonne)(i) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 5,182 | 4,882 | 10,355 | 7,144 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 144,333 | $ 28 | $ 144,190 | $ 30 | $ 270,909 | $ 26 | $ 201,481 | $ 28 | |||
Production costs (C$) | C$ 196,695 | C$ 38 | C$ 194,997 | C$ 40 | C$ 367,548 | C$ 35 | C$ 271,662 | C$ 38 | |||
Inventory adjustments (C$)(iii) | (6,517) | (1) | 511 | — | 13,485 | 2 | 1,251 | — | |||
Purchase price allocation to inventory (C$)(iv) | — | — | (30,651) | (6) | — | — | (30,651) | (4) | |||
In-kind royalties and other | 26,930 | 5 | 23,599 | 5 | 52,567 | 5 | 33,424 | 5 | |||
Minesite costs (C$) | C$ 217,108 | C$ 42 | C$ 188,456 | C$ 39 | C$ 433,600 | C$ 42 | C$ 275,686 | C$ 39 | |||
Goldex (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 33,750 | 37,716 | 68,138 | 71,739 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 33,084 | $ 980 | $ 28,160 | $ 747 | $ 66,266 | $ 973 | $ 55,995 | $ 781 | |||
Inventory adjustments(ii) | 222 | 7 | 582 | 16 | 679 | 10 | (455) | (6) | |||
Realized gains and losses on | 210 | 6 | 505 | 13 | 221 | 3 | 1,212 | 17 | |||
Other adjustments(v) | 827 | 25 | 40 | 1 | 1,197 | 17 | 102 | 1 | |||
Total cash costs (co-product basis) | $ 34,343 | $ 1,018 | $ 29,287 | $ 777 | $ 68,363 | $ 1,003 | $ 56,854 | $ 793 | |||
By-product metal revenues | (5,199) | (154) | (11) | (1) | (6,616) | (97) | (25) | (1) | |||
Total cash costs (by-product basis) | $ 29,144 | $ 864 | $ 29,276 | $ 776 | $ 61,747 | $ 906 | $ 56,829 | $ 792 | |||
Goldex (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 765 | 761 | 1,525 | 1,459 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 33,084 | $ 43 | $ 28,160 | $ 37 | $ 66,266 | $ 43 | $ 55,995 | $ 38 | |||
Production costs (C$) | C$ 59 | C$ 50 | C$ 59 | C$ 52 | |||||||
Inventory adjustments (C$)(iii) | 390 | 1 | 730 | 1 | 1,039 | 1 | (660) | (1) | |||
Minesite costs (C$) | C$ 60 | C$ 51 | C$ 60 | C$ 51 | |||||||
Detour Lake (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 168,247 | 169,352 | 318,998 | 331,209 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 120,302 | $ 715 | $ 112,796 | $ 666 | $ 252,207 | $ 791 | $ 226,818 | $ 685 | |||
Inventory adjustments(ii) | 3,617 | 21 | (474) | (3) | (4,569) | (14) | (168) | — | |||
Realized gains and losses on | 1,089 | 7 | 2,541 | 15 | 1,147 | 3 | 6,095 | 18 | |||
In-kind royalties and other adjustments(v) | 8,723 | 52 | 9,410 | 56 | 16,867 | 53 | 16,985 | 51 | |||
Total cash costs (co-product basis) | $ 133,731 | $ 795 | $ 124,273 | $ 734 | $ 265,652 | $ 833 | $ 249,730 | $ 754 | |||
By-product metal revenues | (666) | (4) | (505) | (3) | (1,246) | (4) | (1,187) | (4) | |||
Total cash costs (by-product basis) | $ 133,065 | $ 791 | $ 123,768 | $ 731 | $ 264,406 | $ 829 | $ 248,543 | $ 750 | |||
Detour Lake (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 6,792 | 6,800 | 13,294 | 13,197 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 120,302 | $ 18 | $ 112,796 | $ 17 | $ 252,207 | $ 19 | $ 226,818 | $ 17 | |||
Production costs (C$) | C$ 164,189 | C$ 24 | C$ 151,645 | C$ 22 | C$ 342,398 | C$ 26 | C$ 305,553 | C$ 23 | |||
Inventory adjustments (C$)(iii) | 5,253 | 1 | 12,357 | 2 | (5,687) | — | 12,872 | 1 | |||
In-kind royalties and other adjustments (C$)(v) | 9,748 | 1 | 11,381 | 2 | 18,624 | 1 | 20,146 | 2 | |||
Minesite costs (C$) | C$ 179,190 | C$ 26 | C$ 175,383 | C$ 26 | C$ 355,335 | C$ 27 | C$ 338,571 | C$ 26 | |||
Macassa (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 64,062 | 57,044 | 132,321 | 121,159 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 51,029 | $ 797 | $ 38,545 | $ 676 | $ 98,677 | $ 746 | $ 76,504 | $ 631 | |||
Inventory adjustments(ii) | (441) | (7) | (178) | (3) | (1,530) | (12) | (1,473) | (11) | |||
Realized gains and losses on | 432 | 7 | 812 | 14 | 455 | 4 | 1,949 | 16 | |||
In-kind royalties and other adjustments(v) | 2,356 | 36 | 3,613 | 63 | 4,513 | 34 | 4,757 | 39 | |||
Total cash costs (co-product basis) | $ 53,376 | $ 833 | $ 42,792 | $ 750 | $ 102,115 | $ 772 | $ 81,737 | $ 675 | |||
By-product metal revenues | — | — | (168) | (3) | (220) | (2) | (376) | (3) | |||
Total cash costs (by-product basis) | $ 53,376 | $ 833 | $ 42,624 | $ 747 | $ 101,895 | $ 770 | $ 81,361 | $ 672 | |||
Macassa (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 152 | 112 | 286 | 199 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 51,029 | $ 336 | $ 38,545 | $ 344 | $ 98,677 | $ 345 | $ 76,504 | $ 384 | |||
Production costs (C$) | C$ 459 | C$ 464 | C$ 134,428 | C$ 470 | C$ 103,236 | C$ 519 | |||||
Inventory adjustments (C$)(iii) | (524) | (3) | (359) | (3) | (1,940) | (7) | (2,076) | (10) | |||
In-kind royalties and other adjustments (C$)(v) | 3,138 | 20 | 4,775 | 42 | 5,953 | 21 | 6,291 | 30 | |||
Minesite costs (C$) | C$ 476 | C$ 503 | C$ 138,441 | C$ 484 | C$ 107,451 | C$ 539 | |||||
Meliadine (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 88,675 | 87,682 | 184,400 | 178,149 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 85,913 | $ 969 | $ 78,817 | $ 899 | $ 179,364 | $ 973 | $ 160,011 | $ 898 | |||
Inventory adjustments(ii) | (7,455) | (84) | 11,228 | 128 | (10,755) | (58) | 14,852 | 83 | |||
Realized gains and losses on | 827 | 9 | (451) | (5) | 1,107 | 6 | (363) | (2) | |||
Other adjustments(v) | 93 | 1 | (118) | (2) | 35 | — | (13) | — | |||
Total cash costs (co-product basis) | $ 79,378 | $ 895 | $ 89,476 | $ 1,020 | $ 169,751 | $ 921 | $ 174,487 | $ 979 | |||
By-product metal revenues | (280) | (3) | (139) | (1) | (515) | (3) | (339) | (1) | |||
Total cash costs (by-product basis) | $ 79,098 | $ 892 | $ 89,337 | $ 1,019 | $ 169,236 | $ 918 | $ 174,148 | $ 978 | |||
Meliadine (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 421 | 461 | 917 | 937 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 85,913 | $ 204 | $ 78,817 | $ 171 | $ 179,364 | $ 196 | $ 160,011 | $ 171 | |||
Production costs (C$) | C$ 116,869 | C$ 278 | C$ 105,834 | C$ 230 | C$ 242,795 | C$ 265 | C$ 214,715 | C$ 229 | |||
Inventory adjustments (C$)(iii) | (9,818) | (24) | 14,556 | 31 | (14,213) | (16) | 19,606 | 21 | |||
Minesite costs (C$) | C$ 107,051 | C$ 254 | C$ 120,390 | C$ 261 | C$ 228,582 | C$ 249 | C$ 234,321 | C$ 250 | |||
Meadowbank (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 126,419 | 94,775 | 254,193 | 205,885 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 123,014 | $ 973 | $ 117,488 | $ 1,240 | $ 237,176 | $ 933 | $ 247,492 | $ 1,202 | |||
Inventory adjustments(ii) | (6,610) | (52) | (5,048) | (54) | (705) | (3) | (6,702) | (32) | |||
Realized gains and losses on | 1,275 | 10 | (2,118) | (22) | 1,821 | 7 | (3,617) | (18) | |||
Other adjustments(v) | 14 | — | 4 | — | (45) | — | (51) | — | |||
Total cash costs (co-product basis) | $ 117,693 | $ 931 | $ 110,326 | $ 1,164 | $ 238,247 | $ 937 | $ 237,122 | $ 1,152 | |||
By-product metal revenues | (1,108) | (9) | (723) | (8) | (1,974) | (7) | (1,548) | (8) | |||
Total cash costs (by-product basis) | $ 116,585 | $ 922 | $ 109,603 | $ 1,156 | $ 236,273 | $ 930 | $ 235,574 | $ 1,144 | |||
Meadowbank (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 990 | 845 | 2,061 | 1,828 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 123,014 | $ 124 | $ 117,488 | $ 139 | $ 237,176 | $ 115 | $ 247,492 | $ 135 | |||
Production costs (C$) | C$ 167,525 | C$ 169 | C$ 157,407 | C$ 186 | C$ 321,119 | C$ 156 | C$ 330,385 | C$ 181 | |||
Inventory adjustments (C$)(iii) | (8,768) | (9) | (6,632) | (8) | (766) | (1) | (8,858) | (5) | |||
Minesite costs (C$) | C$ 158,757 | C$ 160 | C$ 150,775 | C$ 178 | C$ 320,353 | C$ 155 | C$ 321,527 | C$ 176 | |||
(per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 65,963 | 81,813 | 122,532 | 168,371 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 36,824 | $ 558 | $ 35,831 | $ 438 | $ 70,478 | $ 575 | $ 72,430 | $ 430 | |||
Inventory adjustments(ii) | 3,382 | 52 | (522) | (6) | 246 | 2 | (2,885) | (17) | |||
Realized gains and losses on | 68 | 1 | 489 | 6 | 86 | 1 | 677 | 4 | |||
Other adjustments(v) | 12 | — | (7) | (1) | 29 | — | 39 | — | |||
Total cash costs (co-product basis) | $ 40,286 | $ 611 | $ 35,791 | $ 437 | $ 70,839 | $ 578 | $ 70,261 | $ 417 | |||
By-product metal revenues | (167) | (3) | (121) | (1) | (327) | (3) | (278) | (1) | |||
Total cash costs (by-product basis) | $ 40,119 | $ 608 | $ 35,670 | $ 436 | $ 70,512 | $ 575 | $ 69,983 | $ 416 | |||
(per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 234 | 176 | 406 | 324 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 36,824 | $ 157 | $ 35,831 | $ 204 | $ 70,478 | $ 174 | $ 72,430 | $ 224 | |||
Production costs (A$) | A$ 237 | A$ 308 | A$ 107,375 | A$ 264 | A$ 108,462 | A$ 335 | |||||
Inventory adjustments (A$)(ii) | 4,995 | 22 | (756) | (4) | 365 | 1 | (4,357) | (14) | |||
Minesite costs (A$) | A$ 259 | A$ 304 | A$ 107,740 | A$ 265 | A$ 104,105 | A$ 321 | |||||
Kittila (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 55,671 | 50,130 | 110,252 | 113,822 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 57,529 | $ 1,033 | $ 43,336 | $ 864 | $ 116,567 | $ 1,057 | $ 96,631 | $ 849 | |||
Inventory adjustments(ii) | (649) | (12) | 2,784 | 56 | (1,144) | (10) | 2,744 | 24 | |||
Realized gains and losses on | 30 | 1 | (925) | (18) | 19 | — | (1,558) | (14) | |||
Other adjustments(v) | (52) | (1) | (50) | (1) | (120) | (1) | (1,273) | (11) | |||
Total cash costs (co-product basis) | $ 56,858 | $ 1,021 | $ 45,145 | $ 901 | $ 115,322 | $ 1,046 | $ 96,544 | $ 848 | |||
By-product metal revenues | (98) | (1) | (93) | (2) | (187) | (2) | (162) | (1) | |||
Total cash costs (by-product basis) | $ 56,760 | $ 1,020 | $ 45,052 | $ 899 | $ 115,135 | $ 1,044 | $ 96,382 | $ 847 | |||
Kittila (per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 524 | 417 | 1,006 | 913 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 57,529 | $ 110 | $ 43,336 | $ 104 | $ 116,567 | $ 116 | $ 96,631 | $ 106 | |||
Production costs (€) | € 53,377 | € 102 | € 42,251 | € 101 | € 107,856 | € 107 | € 91,002 | € 100 | |||
Inventory adjustments (€)(iii) | (515) | (1) | 946 | 3 | (885) | (1) | 832 | 1 | |||
Minesite costs (€) | € 52,862 | € 101 | € 43,197 | € 104 | € 106,971 | € 106 | € 91,834 | € 101 | |||
(per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 23,754 | 22,159 | 48,479 | 46,293 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 43,109 | $ 1,815 | $ 34,709 | $ 1,566 | $ 76,516 | $ 1,578 | $ 67,631 | $ 1,461 | |||
Inventory adjustments(ii) | (872) | (37) | 761 | 34 | 5,783 | 119 | 513 | 11 | |||
Realized gains and losses on | — | — | (690) | (31) | — | — | (1,143) | (25) | |||
Other adjustments(v) | 345 | 15 | 286 | 13 | 663 | 14 | 578 | 13 | |||
Total cash costs (co-product basis) | $ 42,582 | $ 1,793 | $ 35,066 | $ 1,582 | $ 82,962 | $ 1,711 | $ 67,579 | $ 1,460 | |||
By-product metal revenues | (8,989) | (379) | (6,653) | (300) | (16,039) | (331) | (12,227) | (264) | |||
Total cash costs (by-product basis) | $ 33,593 | $ 1,414 | $ 28,413 | $ 1,282 | $ 66,923 | $ 1,380 | $ 55,352 | $ 1,196 | |||
(per tonne) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | 454 | 401 | 880 | 765 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 43,109 | $ 95 | $ 34,709 | $ 87 | $ 76,516 | $ 87 | $ 67,631 | $ 88 | |||
Inventory adjustments(iii) | (872) | (2) | 1,905 | 3 | 5,783 | 7 | 1,657 | 3 | |||
Minesite costs | $ 42,237 | $ 93 | $ 36,614 | $ 90 | $ 82,299 | $ 94 | $ 69,288 | $ 91 | |||
La (per ounce) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Gold production (ounces) | 6,079 | 17,833 | 16,661 | 34,154 | |||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||
Production costs | $ 13,044 | $ 2,146 | $ 23,649 | $ 1,326 | $ 29,028 | $ 1,742 | $ 43,741 | $ 1,281 | |||
Inventory adjustments(ii) | 381 | 63 | 1,318 | 74 | 147 | 9 | 2,766 | 80 | |||
Other adjustments(v) | 131 | 21 | 134 | 8 | 264 | 16 | 263 | 8 | |||
Total cash costs (co-product basis) | $ 13,556 | $ 2,230 | $ 25,101 | $ 1,408 | $ 29,439 | $ 1,767 | $ 46,770 | $ 1,369 | |||
By-product metal revenues | (356) | (59) | (407) | (23) | (858) | (52) | (722) | (21) | |||
Total cash costs (by-product basis) | $ 13,200 | $ 2,171 | $ 24,694 | $ 1,385 | $ 28,581 | $ 1,715 | $ 46,048 | $ 1,348 | |||
La (per tonne)(vi) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Tonnes of ore milled (thousands) | — | 880 | — | 1,540 | |||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||
Production costs | $ 13,044 | $ — | $ 23,649 | $ 27 | $ 29,028 | $ — | $ 43,741 | $ 28 | |||
Inventory adjustments(iii) | (13,044) | — | 1,318 | 1 | (29,028) | — | 2,766 | 2 | |||
Minesite costs | $ — | $ — | $ 24,967 | $ 28 | $ — | $ — | $ 46,507 | $ 30 | |||
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 are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. | |||||||||||
(iii) This inventory adjustment reflects production costs associated with the portion of production still in inventory. | |||||||||||
(iv) On March 31, 2023, the Company closed the Yamana Transaction and this adjustment reflects the fair value allocated to inventory on Canadian Malartic as part of the purchase price allocation. | |||||||||||
(v) Other adjustments consists of costs associated with a | |||||||||||
(vi) La India's cost calculations per tonne for the three and six months ended June 30, 2024 excludes approximately | |||||||||||
All-in sustaining costs per ounce
All-in sustaining costs per ounce (also referred to as "AISC 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 on a co-product basis is calculated in the same manner as the AISC per ounce 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. 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, nor does it include non-cash expenditures, such as depreciation and amortization. Unless otherwise indicated, all-in sustaining costs per ounce is reported on a by-product basis (see "Total cash costs per ounce" for a discussion of regarding the Company's use of by-product basis reporting).
Management believes that AISC per ounce is useful to investors as it reflects total sustaining expenditures of producing and selling an ounce of gold while maintaining current operations and, as such, provides useful information about operating performance. 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 AISC per ounce on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne as this measure is not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS.
The Company follows the guidance on calculation of AISC per ounce released by the World Gold Council ("WGC") in 2018. The WGC is a non-regulatory market development organization for the gold industry that has worked closely with its member companies to develop guidance in respect of relevant non-GAAP measures. Notwithstanding the Company's adoption of the WGC's guidance, AISC per ounce reported by the Company may not be comparable to data reported by other gold mining companies.
The following tables set out a reconciliation of production costs to all-in sustaining costs per ounce for the three and six months ended June 30, 2024 and June 30, 2023, on both a by-product basis (deducting by-product metals revenue from production costs) and co-product basis (without deducting by-product metal revenues).
(United States dollars per ounce, except where noted) | Three Months Ended June 30, | Six Months Ended | |||||
2024 | 2023 | 2024 | 2023 | ||||
Production costs per the consolidated statements of income (thousands of United States dollars) | $ 771,984 | $ 743,253 | $ 1,555,569 | $ 1,396,397 | |||
Gold production (ounces) | 895,838 | 873,204 | 1,774,490 | 1,686,017 | |||
Production costs per ounce | $ 862 | $ 851 | $ 877 | $ 828 | |||
Adjustments: | |||||||
Inventory adjustments(i) | 3 | 1 | — | 14 | |||
Purchase price allocation to inventory(ii) | — | (26) | — | (13) | |||
Realized gains and losses on hedges of production costs | 6 | 1 | 4 | 3 | |||
Other(iii) | 40 | 43 | 39 | 34 | |||
Total cash costs per ounce (co-product basis) | $ 911 | $ 870 | $ 920 | $ 866 | |||
By-product metal revenues | (41) | (30) | (35) | (30) | |||
Total cash costs per ounce (by-product basis) | $ 870 | $ 840 | $ 885 | $ 836 | |||
Adjustments: | |||||||
Sustaining capital expenditures (including capitalized exploration) | 227 | 237 | 221 | 226 | |||
General and administrative expenses (including stock option expense) | 54 | 54 | 55 | 57 | |||
Non-cash reclamation provision and sustaining leases(iv) | 18 | 19 | 18 | 19 | |||
All-in sustaining costs per ounce (by-product basis) | $ 1,169 | $ 1,150 | $ 1,179 | $ 1,138 | |||
By-product metal revenues | 41 | 30 | 35 | 30 | |||
All-in sustaining costs per ounce (co-product basis) | $ 1,210 | $ 1,180 | $ 1,214 | $ 1,168 | |||
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 are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. | |||||||
(ii) On March 31, 2023, the Company closed the Yamana Transaction and this adjustment reflects the fair value allocated to inventory at Canadian Malartic as part of the purchase price allocation. | |||||||
(iii) Other adjustments consist of in-kind royalties, smelting, refining and marketing charges to production costs. | |||||||
(iv) Sustaining leases are lease payments related to sustaining assets. | |||||||
Adjusted net income and adjusted net income per share
Adjusted net income and adjusted net income per share are calculated by adjusting the net income as recorded in the condensed interim consolidated statements of income for the effects of certain 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 items such as foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, revaluation gains, impairment loss charges and reversals, environmental remediation, severance and transaction costs related to acquisitions, purchase price allocations to inventory, gains or losses on the disposal of assets, retroactive payments and income and mining taxes adjustments. Adjusted net income per share is calculated by dividing adjusted net income by the weighted average number of shares outstanding at the end of the period on a basic and diluted basis.
The Company believes that these generally accepted industry measures are useful to investors 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 the Company believes are not reflective of operational performance. Management uses this measure to, and believes it is useful 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.
The following tables set out a reconciliation of net income per the condensed interim consolidated statements of income to adjusted net income for the three and six months ended June 30, 2024, and June 30, 2023.
Three Months Ended | Six Months Ended | ||||||
(thousands of | 2024 | 2023 | 2024 | 2023 | |||
Restated(i) | Restated(i) | ||||||
Net income for the period - basic | $ 472,016 | $ 323,670 | $ 819,208 | $ 2,140,561 | |||
Dilutive impact of cash settling LTIP | — | (1,140) | 2,062 | (2,916) | |||
Net income for the period - diluted | $ 472,016 | $ 322,530 | $ 821,270 | $ 2,137,645 | |||
Foreign currency translation loss (gain) | 363 | 4,014 | (4,184) | 4,234 | |||
Realized and unrealized loss (gain) on derivative financial | 19,608 | (26,433) | 65,543 | (32,972) | |||
Transaction costs related to acquisitions | — | 1,674 | — | 16,912 | |||
Revaluation gain on Yamana Transaction | — | — | — | (1,543,414) | |||
Environmental remediation | 3,108 | (1,420) | 4,907 | (1,977) | |||
Net loss on disposal of property, plant and equipment | 16,819 | 1,058 | 20,366 | 3,601 | |||
Purchase price allocation to inventory | — | 22,821 | — | 22,821 | |||
Other(ii) | 13,215 | — | 13,215 | — | |||
Income and mining taxes adjustments(iii) | 10,139 | (6,121) | (6,316) | (19,223) | |||
Adjusted net income for the period - basic | $ 535,268 | $ 319,263 | $ 912,739 | $ 590,543 | |||
Adjusted net income for the period - diluted | $ 535,268 | $ 318,123 | $ 914,801 | $ 587,627 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction. | |||||||
(ii) Other adjustments relate to retroactive payments that management considers not reflective of the Company's underlying performance in the current period. | |||||||
(iii) Income and mining taxes adjustments reflect items such as foreign currency translation recorded to the income and mining taxes expense, the impact of income and mining taxes on adjusted items, recognition of previously unrecognized capital losses, the result of income and mining taxes audits, impact of tax law changes and adjustments to prior period tax filings. | |||||||
EBITDA and adjusted EBITDA
EBITDA is calculated by adjusting the net income as recorded in the condensed interim consolidated statements of income for finance costs, amortization of property, plant and mine development and income and mining tax expense line items as reported in the condensed interim consolidated statements of income.
Adjusted EBITDA removes the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period. Adjusted EBITDA is calculated by adjusting the EBITDA calculation for items such as foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, revaluation gains, impairment loss charges and reversals, environmental remediation, severance and transaction costs related to acquisitions, gains or losses on the disposal of assets, retroactive payments and purchase price allocations to inventory.
The Company believes that these generally accepted industry measures are useful in that they allow for the evaluation of the cash generating capability of the Company to fund its working capital, capital expenditure and debt repayments. EBITDA and Adjusted EBITDA are intended to provide investors with information about the Company's continuing cash generating capability from its core mining business, excluding the above adjustments, which management believes are not reflective of operational performance. Management uses these measures to, and believes it is useful to investors so they can, understand and monitor the cash generating capability of the Company in conjunction with other data prepared in accordance with IFRS.
The following tables set out a reconciliation of net income per the condensed interim consolidated statements of income to EBITDA and adjusted EBITDA for the three and six months ended June 30, 2024, and June 30, 2023.
Three Months Ended | Six Months Ended | ||||||
(thousands of United States dollars) | 2024 | 2023 | 2024 | 2023 | |||
Restated(i) | Restated(i) | ||||||
Net income for the period | $ 472,016 | $ 323,670 | $ 819,208 | $ 2,140,561 | |||
Finance costs | 34,473 | 35,837 | 70,738 | 59,285 | |||
Amortization of property, plant and mine development | 378,389 | 386,314 | 735,614 | 690,273 | |||
Income and mining tax expense | 238,190 | 137,618 | 380,046 | 266,226 | |||
EBITDA | 1,123,068 | 883,439 | 2,005,606 | 3,156,345 | |||
Foreign currency translation loss (gain) | 363 | 4,014 | (4,184) | 4,234 | |||
Realized and unrealized loss (gain) on derivative | 19,608 | (26,433) | 65,543 | (32,972) | |||
Transaction costs related to acquisitions | — | 1,674 | — | 16,912 | |||
Revaluation gain on Yamana Transaction | — | — | — | (1,543,414) | |||
Environmental remediation | 3,108 | (1,420) | 4,907 | (1,977) | |||
Net loss on disposal of property, plant and equipment | 16,819 | 1,058 | 20,366 | 3,601 | |||
Purchase price allocation to inventory | — | 22,821 | — | 22,821 | |||
Other(ii) | 13,215 | — | 13,215 | — | |||
Adjusted EBITDA | $ 885,153 | $ 2,105,453 | $ 1,625,550 | ||||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction. | |||||||
(ii) Other adjustments relate to retroactive payments that management considers not reflective of the Company's underlying performance in the current period. | |||||||
Cash provided by operating activities before changes in non-cash working capital balances and cash provided by operating activities before changes in non-cash working capital balances per share
Cash provided by operating activities before changes in non-cash working capital balances and cash provided by operating activities before changes in non-cash working capital balances per share are calculated by adjusting the cash provided by operating activities as shown in the condensed interim consolidated statements of cash flows for the effects of changes in non-cash working capital balances such as income taxes, inventories, other current assets, accounts payable and accrued liabilities and interest payable. The per share amount is calculated by dividing cash provided by operating activities before changes in non-cash working capital balances by the weighted average number of shares outstanding at the end of the period on a basic basis. The Company believes that changes in working capital can be volatile due to numerous factors, including the timing of payments. Management uses these measures to, and believes they are useful to investors so they can, assess the underlying operating cash flow performance and future operating cash flow generating capabilities of the Company in conjunction with other data prepared in accordance with IFRS. A reconciliation of these measures to the nearest IFRS measure is provided below.
Free cash flow and free cash flow before changes in non-cash working capital balances
Free cash flow is calculated by deducting additions to property, plant and mine development from the cash provided by operating activities line item as recorded in the condensed interim consolidated statements of cash flows.
Free cash flow before changes in non-cash components of working capital is calculated by excluding items such as the effect of changes in non-cash components of working capital from free cash flow, which includes income taxes, inventory, other current assets, accounts payable and accrued liabilities and interest payable.
The Company believes that these generally accepted industry measures are useful in that they allow for the evaluation of the Company's ability to repay creditors and return cash to shareholders without relying on external sources of funding. Free cash flow and free cash flow before changes in non-cash components of working capital also provide investors with information about the Company's financial position and its ability to generate cash to fund operational and capital requirements as well as return cash to shareholders. Management uses these measures in conjunction with other data prepared in accordance with IFRS to, and believes it is useful to investors so they can, understand and monitor the cash generating ability of the Company.
The following tables set out a reconciliation of cash provided by operating activities per the condensed interim consolidated statements of cash flows to free cash flow and free cash flow before changes in non-cash working capital balances and to cash provided by operating activities before changes in non-cash working capital balances for the three and six months ended June 30, 2024, and June 30, 2023.
Three Months Ended | Six Months Ended | ||||||
(thousands of United States dollars) | 2024 | 2023 | 2024 | 2023 | |||
Restated(i) | Restated(i) | ||||||
Cash provided by operating activities | $ 961,336 | $ 722,000 | $ 1,744,511 | $ 1,371,613 | |||
Additions to property, plant and mine development | (404,098) | (423,621) | (791,685) | (808,555) | |||
Free Cash Flow | 557,238 | 298,379 | 952,826 | 563,058 | |||
Changes in income taxes | (46,426) | (65,428) | (46,802) | (89,405) | |||
Changes in inventory | 37,028 | 28,815 | 8,856 | 26,747 | |||
Changes in other current assets | 84,118 | 102,810 | 57,500 | 83,420 | |||
Changes in accounts payable and accrued liabilities | (47,908) | (108,128) | 6,082 | (100,859) | |||
Changes in interest payable | (1,900) | 12,955 | (6,831) | 10,307 | |||
Free cash flow before changes in non-cash working capital | $ 582,150 | $ 269,403 | $ 971,631 | $ 493,268 | |||
Additions to property, plant and mine development | 404,098 | 423,621 | 791,685 | 808,555 | |||
Cash provided by operating activities before changes in | $ 986,248 | $ 693,024 | |||||
Cash provided by operating activities per share - basic | $ 1.92 | $ 1.46 | $ 3.50 | $ 2.85 | |||
Cash provided by operating activities before changes in | $ 1.97 | $ 1.40 | $ 3.54 | $ 2.70 | |||
Free cash flow per share - basic | $ 1.12 | $ 0.60 | $ 1.91 | $ 1.17 | |||
Free cash flow before changes in non-cash working capital | $ 1.17 | $ 0.55 | $ 1.95 | $ 1.02 | |||
Note: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction | |||||||
Operating margin
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 condensed interim 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; and revaluation gain and impairment losses (reversals). The Company believes that operating margin is a useful measure to investors as it reflects 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. Management believes this measure is useful to investors as it provides them with additional information about the Company's underlying operating results and should be evaluated in conjunction with other data prepared in accordance with IFRS. For a reconciliation of operating margin to revenue from mining operations reported in the Company's financial statements, see "Summary of Operations Key Performance Indicators" below.
Sustaining capital expenditures and development capital expenditures
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 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 represent the spending at new projects and/or expenditures at existing operations that are 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.
The following tables set out a reconciliation of sustaining capital expenditures and development capital expenditures to the additions to property, plant and mine development per the condensed interim consolidated statements of cash flows for the three and six months ended June 30, 2024 and June 30, 2023.
(thousands of | Three Months Ended | Six Months Ended | |||||
2024 | 20231 | 2024 | 20231 | ||||
Sustaining capital expenditures(ii) | $ 205,340 | $ 206,914 | $ 395,947 | $ 381,545 | |||
Development capital expenditures(ii) | 201,962 | 209,133 | 383,373 | 376,236 | |||
Total Capital Expenditures | $ 407,302 | $ 416,047 | $ 779,320 | $ 757,781 | |||
Working capital adjustments | (3,204) | 7,574 | 12,365 | 50,774 | |||
Additions to property, plant and mine development per the | $ 404,098 | $ 423,621 | $ 791,685 | $ 808,555 | |||
Notes: | |||||||
(i) The information set out in this table reflects the Company's | |||||||
(ii) Sustaining capital expenditures and development capital expenditures include capitalized exploration. | |||||||
Net debt
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 condensed interim consolidated balance sheets 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 the future debt capacity of the Company.
The following tables set out a reconciliation of long-term debt per the condensed interim consolidated balance sheets to net debt as at June 30, 2024, and December 31, 2023.
As at | As at | ||
(thousands of | June 30, 2024 | December 31, 2023 | |
Current portion of long-term debt per the condensed interim | $ 740,000 | $ 100,000 | |
Non-current portion of long-term debt | 1,101,670 | 1,743,086 | |
Long-term debt | $ 1,841,670 | $ 1,843,086 | |
Adjustment: | |||
Cash and cash equivalents | $ (921,989) | $ (338,648) | |
Net Debt | $ 919,681 | $ 1,504,438 |
Forward-Looking Non-GAAP Measures
This news release also contains information as to estimated future total cash costs per ounce and AISC per ounce. The estimates are based upon the total cash costs per ounce and AISC per ounce 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 31, 2024. 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", "commit", "could", "estimate", "expect", "forecast", "future", "guide", "plan", "potential", "schedule", "target", "track", "will", and similar expressions are intended to identify forward-looking statements. Such statements include the Company's forward-looking guidance, including metal production, estimated ore grades, 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 the Company's sites; the estimated timing and conclusions of the Company's studies and evaluations; the methods by which ore will be extracted or processed; the Company's expansion plans at Detour Lake, Meliadine Phase 2, Amaruq underground, Upper Beaver and Odyssey, including the timing, funding, completion and commissioning thereof and the commencement of production therefrom; the Company's plans at Hope Bay and San Nicolás; statements concerning other expansion projects, recovery rates, mill throughput, optimization efforts 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 and studies 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, including at Meliadine, Upper Beaver and San Nicolás, and the anticipated timing thereof; future exploration; the anticipated timing of events with respect to the Company's mine sites; the Company's plans and strategies with respect to climate change and greenhouse gas emissions reductions; 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, the term loan facility and other indebtedness; future dividend amounts, record dates, payment dates and discount rates under the dividend reinvestment plan; plans with respect to offering securities pursuant to the base shelf prospectus; plans with respect to activity under the NCIB; 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, 2023 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2023 ("Form 40-F") filed with the
Notes Regarding Certain Climate Change and GHG Disclosure
This news release includes information with respect to climate change plans and strategies and GHG emissions reductions plans and strategies that has been prepared for the purpose of assisting the Company's stakeholders in understanding certain key elements of the Company's climate and other sustainability-related objectives, targets and risks and may not be suitable or appropriate for other purposes. This information has been provided from a different perspective and in more detail than is required to be included in mandatory securities filings. None of the information in this news release relating to climate change plans and strategies and GHG emissions reductions plans and strategies has been audited.
Due to the inherent uncertainty and limitations in measuring GHG emissions and intensity, energy consumption and composition, project type GHG reduction potential and likelihood, and climate-related risks and opportunities under the calculation methodologies used in the preparation of these and other data and metrics, all such information in this news release are estimates. There may also be differences in the manner that other parties calculate, report, test or substantiate such information compared to the Company, which means that the information reported by other parties may not be comparable to that reported by the Company. Further, as climate and other sustainability-related reporting evolves, there could be changes to the market practices, taxonomies, methodologies, criteria and standards that are used to classify, measure, test, substantiate and report on such matters, so this information may not be comparable to information prepared or reported by the Company at a different time. However, all information in this news release concerning the Company's climate and other sustainability-related objectives and impacts are based on what the Company believes to be adequate and proper substantiation in accordance with internationally recognized methodology.
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").
In 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 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. Accordingly, 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. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances.
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. 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
Additional Information
Additional information about each of the Company's material mineral projects as at December 31, 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 A – EXPLORATION DETAILS
MRMR update for Upper Beaver gold-copper project
The mineral reserves and mineral resources ("MRMR") estimate for the Upper Beaver gold-copper project in the
As a result of exploration drilling campaigns conducted by the Company during the 2017 to 2022 period, additional drill results totalling 226,418 metres in 441 holes were incorporated for the first time into the June 30, 2024 MRMR update, which used a database closure date of April 3, 2024. No new drilling has been conducted at Upper Beaver since this date.
The updated MRMR estimate for Upper Beaver as at June 30, 2024, and the variance from the estimate as at December 31, 2023 are set out in the table below. The parameters of the updated MRMR estimate are set out in the notes of the table below.
Upper Beaver Mineral Reserves and Mineral Resources at June 30, 2024 and at December 31, 2023
Category | As at June 30, 20244 | As at December 31, 2023 | Variance | |||||||||
000 | Au (g/t) | Au | Cu (%) | Cu | 000 | Au (g/t) | Au | Cu (%) | Cu | Au | Cu 000 t | |
Mineral Reserves | ||||||||||||
Total Proven | — | — | — | — | — | 7,992 | 5.43 | 1,395 | 0.25 | 20 | -1,395 | -20 |
Mineral Resources | ||||||||||||
Indicated OP2 | 3,326 | 1.85 | 198 | 0.14 | 5 | — | — | — | — | — | 198 | 5 |
Indicated UG3 | 27,550 | 3.66 | 3,242 | 0.24 | 66 | 3,636 | 3.45 | 403 | 0.14 | 5 | 2,838 | 61 |
Total | 30,876 | 3.47 | 3,440 | 0.23 | 71 | 3,636 | 3.45 | 403 | 0.14 | 5 | 3,036 | 66 |
Inferred OP2 | — | — | — | — | — | — | — | — | — | — | — | — |
Inferred UG3 | 2,959 | 4.13 | 393 | 0.36 | 11 | 8,688 | 5.07 | 1,416 | 0.20 | 17 | -1,023 | -7 |
Total Inferred | 2,959 | 4.13 | 393 | 0.36 | 11 | 8,688 | 5.07 | 1,416 | 0.20 | 17 | -1,023 | -7 |
Notes: |
1. Mineral reserves and mineral resources as at December 31, 2023 were reported at a net smelter value cut-off of C |
2. Open pit ("OP") mineral resources as at June 30, 2024 are reported at a net smelter value cut-off of C |
3. Underground ("UG") mineral resources as at June 30, 2024 are reported at a net smelter value cut-off of C |
4. The assumptions used for the mineral resource estimate as at June 30, 2024 were US |
The main variances in the MRMR estimates between June 30, 2024, and December 31, 2023 are described below:
- Mineral Reserves – In the updated estimate, the mineral reserves have been reclassified as mineral resources that are supported by a positive internal preliminary economic assessment, which includes both indicated mineral resources and inferred mineral resources, that was completed in June 2024. As additional geotechnical fieldwork and metallurgical test work is completed through the remainder of the year, the Company anticipates that most indicated mineral resources will be converted into probable mineral reserves at year-end 2024
- Measured and Indicated Mineral Resources – The increase of 3.0 million ounces of gold (or
753% ) and 66,000 tonnes of copper (or 1,280% ) in the June 30, 2024 estimate compared to the December 31, 2023 estimate is primarily due to the incorporation of new drilling results and the reclassification of mineral reserves into indicated mineral resources - Inferred Mineral Resources – The decrease of 1.0 million ounces of gold (or -
72% ) and 7,000 tonnes of copper (or -38% ) in the June 30, 2024 estimate compared to the December 31, 2023 estimate is primarily due to the successful conversion drilling program
Additional details on the Upper Beaver mineral reserves and mineral resources at December 31, 2023 are set out in the Company's news release dated February 15, 2024.
EXPLORATION DRILL COLLAR COORDINATES
Drill hole | UTM East* | UTM North* | Elevation | Azimuth | Dip (degrees) | Length (metres) |
Odyssey mine | ||||||
MEX23-310ZA | 718664 | 5334762 | 307 | 174 | -61 | 2,050 |
MEX24-311 | 718664 | 5334762 | 307 | 145 | -60 | 2,409 |
MEX24-311Z | 718664 | 5334762 | 307 | 145 | -60 | 2,070 |
MEX24-312 | 718664 | 5334762 | 307 | 155 | -74 | 1,753 |
MEX24-312Z | 718664 | 5334762 | 307 | 155 | -74 | 1,777 |
MEX24-314 | 718664 | 5334762 | 307 | 154 | -55 | 1,599 |
Detour Lake | ||||||
DLM24-839 | 586805 | 5541735 | 293 | 177 | -66 | 588 |
DLM24-843 | 587883 | 5541783 | 286 | 178 | -57 | 876 |
DLM24-851 | 586844 | 5541744 | 295 | 176 | -60 | 474 |
DLM24-855 | 586962 | 5541810 | 303 | 179 | -65 | 699 |
DLM24-860 | 586848 | 5541874 | 304 | 178 | -67 | 747 |
DLM24-870 | 587168 | 5541594 | 289 | 177 | -59 | 351 |
DLM24-871 | 587284 | 5541663 | 291 | 176 | -56 | 501 |
DLM24-873 | 587162 | 5541698 | 294 | 176 | -57 | 447 |
DLM24-874 | 588888 | 5541621 | 284 | 178 | -58 | 819 |
DLM24-884 | 587283 | 5541869 | 296 | 174 | -56 | 746 |
DLM24-891C | 588927 | 5541758 | 285 | 180 | -65 | 162 |
DLM24-895AW | 587001 | 5541947 | 306 | 176 | -64 | 567 |
DLM24-897E | 588036 | 5541696 | 287 | 179 | -54 | 729 |
DLM24-899A | 587041 | 5541856 | 306 | 179 | -64 | 675 |
DLM24-903 | 586764 | 5541782 | 294 | 178 | -61 | 633 |
DLM24-908E | 588764 | 5541748 | 286 | 180 | -57 | 822 |
DLM24-911A | 587039 | 5541905 | 307 | 176 | -69 | 876 |
DLM24-916W | 586721 | 5541839 | 295 | 180 | -62 | 297 |
DLM24-923 | 586722 | 5541916 | 299 | 176 | -66 | 726 |
DLM24-927 | 586686 | 5541799 | 292 | 180 | -60 | 552 |
DLM24-930A | 588243 | 5541718 | 288 | 179 | -56 | 948 |
Hope Bay | ||||||
HBM24-177B | 435381 | 7549031 | 26 | 231 | -58 | 1092 |
HBM24-183 | 435244 | 7549203 | 26 | 237 | -57 | 857 |
HBM24-188 | 435572 | 7548364 | 26 | 235 | -51 | 762 |
HBM24-189 | 435502 | 7548335 | 26 | 229 | -51 | 674 |
HBM24-191 | 435391 | 7548479 | 26 | 245 | -52 | 488 |
HBM24-201 | 435024 | 7548255 | 62 | 88 | -59 | 650 |
HBM24-206A | 434853 | 7548121 | 35 | 71 | -52 | 822 |
HBM24-207 | 434899 | 7548269 | 57 | 70 | -68 | 860 |
HBM24-209 | 434848 | 7548176 | 36 | 70 | -65 | 915 |
*Coordinate Systems: NAD 83 UTM zone 17N for Odyssey; NAD 1983 UTM zone 17N for Detour Lake; and NAD 1983 UTM zone 13N for Hope Bay |
APPENDIX B – 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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Restated)(i) | (Restated)(i) | ||||||
Net income - key line items: | |||||||
Revenue from mine operations: | |||||||
LaRonde mine | 132,888 | 133,865 | 276,505 | 236,085 | |||
LaRonde zone 5 mine | 37,414 | 36,558 | 80,029 | 66,080 | |||
Canadian | 418,472 | 335,871 | 746,589 | 473,945 | |||
Goldex | 83,536 | 73,272 | 155,920 | 141,335 | |||
Detour Lake | 359,416 | 317,068 | 702,373 | 623,663 | |||
Macassa | 153,476 | 112,879 | 292,869 | 230,738 | |||
Meliadine | 220,276 | 157,179 | 422,515 | 326,713 | |||
Meadowbank | 308,615 | 195,856 | 558,000 | 405,669 | |||
145,026 | 168,074 | 266,061 | 337,375 | ||||
Kittila | 133,160 | 102,868 | 247,223 | 218,887 | |||
67,790 | 50,389 | 116,190 | 101,837 | ||||
La | 16,552 | 34,318 | 42,170 | 65,531 | |||
Revenues from mining operations | $ 2,076,621 | $ 1,718,197 | $ 3,906,444 | $ 3,227,858 | |||
Production costs | 771,984 | 743,253 | 1,555,569 | 1,396,397 | |||
Total operating margin(ii) | 1,304,637 | 974,944 | 2,350,875 | 1,831,461 | |||
Amortization of property, plant and mine development | 378,389 | 386,314 | 735,614 | 690,273 | |||
Revaluation gain(iv) | — | — | — | (1,543,414) | |||
Exploration, corporate and other | 216,042 | 127,342 | 416,007 | 277,815 | |||
Income before income and mining taxes | 710,206 | 461,288 | 1,199,254 | 2,406,787 | |||
Income and mining taxes expense | 238,190 | 137,618 | 380,046 | 266,226 | |||
Net income for the period | $ 472,016 | $ 323,670 | $ 819,208 | $ 2,140,561 | |||
Net income per share — basic | $ 0.95 | $ 0.66 | $ 1.64 | $ 4.45 | |||
Net income per share — diluted | $ 0.94 | $ 0.65 | $ 1.64 | $ 4.43 | |||
Cash flows: | |||||||
Cash provided by operating activities | $ 961,336 | $ 722,000 | $ 1,744,511 | $ 1,371,613 | |||
Cash used in investing activities | $ (424,576) | $ (450,202) | $ (837,624) | $ (1,848,947) | |||
Cash (used in) provided by financing activities | $ (137,234) | $ (582,351) | $ (320,268) | $ 254,082 | |||
Realized prices: | |||||||
Gold (per ounce) | $ 2,342 | $ 1,975 | $ 2,202 | $ 1,935 | |||
Silver (per ounce) | $ 30.09 | $ 24.43 | $ 27.21 | $ 23.72 | |||
Zinc (per tonne) | $ 2,792 | $ 2,343 | $ 2,625 | $ 2,685 | |||
Copper (per tonne) | $ 9,192 | $ 7,898 | $ 9,720 | $ 8,590 | |||
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Payable production(v): | |||||||
Gold (ounces): | |||||||
LaRonde mine | 62,260 | 58,635 | 114,075 | 118,168 | |||
LaRonde zone 5 mine | 20,074 | 18,145 | 36,623 | 38,219 | |||
Canadian | 180,871 | 177,755 | 367,777 | 258,440 | |||
Goldex | 33,750 | 37,716 | 68,138 | 71,739 | |||
Detour Lake | 168,247 | 169,352 | 318,998 | 331,209 | |||
Macassa | 64,062 | 57,044 | 132,321 | 121,159 | |||
Meliadine | 88,675 | 87,682 | 184,400 | 178,149 | |||
Meadowbank | 126,419 | 94,775 | 254,193 | 205,885 | |||
65,963 | 81,813 | 122,532 | 168,371 | ||||
Kittila | 55,671 | 50,130 | 110,252 | 113,822 | |||
23,754 | 22,159 | 48,479 | 46,293 | ||||
CrestonMascota | 13 | 165 | 41 | 409 | |||
La | 6,079 | 17,833 | 16,661 | 34,154 | |||
Total gold (ounces): | 895,838 | 873,204 | 1,774,490 | 1,686,017 | |||
Silver (thousands of ounces) | 628 | 619 | 1,243 | 1,164 | |||
Zinc (tonnes) | 1,883 | 2,611 | 3,565 | 4,898 | |||
Copper (tonnes) | 1,072 | 746 | 1,876 | 1,276 | |||
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Payable metal sold(vi): | |||||||
Gold (ounces): | |||||||
LaRonde mine | 51,565 | 61,920 | 116,729 | 110,082 | |||
LaRonde zone 5 mine | 16,265 | 18,923 | 36,516 | 34,384 | |||
Canadian | 176,651 | 168,257 | 336,199 | 240,066 | |||
Goldex | 33,783 | 37,114 | 68,225 | 73,031 | |||
Detour Lake | 153,622 | 160,281 | 320,630 | 323,575 | |||
Macassa | 65,340 | 57,102 | 132,840 | 120,030 | |||
Meliadine | 94,438 | 79,153 | 192,978 | 168,739 | |||
Meadowbank | 131,003 | 98,980 | 252,113 | 209,005 | |||
62,049 | 85,500 | 120,049 | 174,500 | ||||
Kittila | 56,984 | 51,800 | 111,984 | 112,520 | |||
25,510 | 22,355 | 45,810 | 46,591 | ||||
La | 7,020 | 17,463 | 19,220 | 33,883 | |||
Total gold (ounces): | 874,230 | 858,848 | 1,753,293 | 1,646,406 | |||
Silver (thousands of ounces) | 637 | 597 | 1,241 | 1,149 | |||
Zinc (tonnes) | 1,547 | 2,743 | 3,054 | 4,874 | |||
Copper (tonnes) | 1,113 | 713 | 1,875 | 1,281 | |||
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Total cash costs per ounce — co-product basis(vii): | |||||||
LaRonde mine | $ 1,020 | $ 1,046 | $ 1,134 | $ 1,091 | |||
LaRonde zone 5 mine | 1,046 | 1,213 | 1,112 | 1,189 | |||
Canadian | 884 | 783 | 872 | 791 | |||
Goldex | 1,018 | 777 | 1,003 | 793 | |||
Detour Lake | 795 | 734 | 833 | 754 | |||
Macassa | 833 | 750 | 772 | 675 | |||
Meliadine | 895 | 1,020 | 921 | 979 | |||
Meadowbank | 931 | 1,164 | 937 | 1,152 | |||
611 | 437 | 578 | 417 | ||||
Kittila | 1,021 | 901 | 1,046 | 848 | |||
1,793 | 1,582 | 1,711 | 1,460 | ||||
La | 2,230 | 1,408 | 1,767 | 1,369 | |||
Total cash costs per ounce (co-product basis) | $ 911 | $ 870 | $ 920 | $ 866 | |||
Total cash costs per ounce — by-product basis(vii): | |||||||
LaRonde mine | $ 747 | $ 787 | $ 874 | $ 840 | |||
LaRonde zone 5 mine | 1,030 | 1,198 | 1,098 | 1,175 | |||
Canadian | 871 | 772 | 860 | 779 | |||
Goldex | 864 | 776 | 906 | 792 | |||
Detour Lake | 791 | 731 | 829 | 750 | |||
Macassa | 833 | 747 | 770 | 672 | |||
Meliadine | 892 | 1,019 | 918 | 978 | |||
Meadowbank | 922 | 1,156 | 930 | 1,144 | |||
608 | 436 | 575 | 416 | ||||
Kittila | 1,020 | 899 | 1,044 | 847 | |||
1,414 | 1,282 | 1,380 | 1,196 | ||||
La | 2,172 | 1,385 | 1,715 | 1,348 | |||
Total cash costs per ounce (by-product basis) | $ 870 | $ 840 | $ 885 | $ 836 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of Canadian Malartic | |||||||
(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- Operating Margin for more information on the Company's calculation and use of operating margin | |||||||
(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) Canadian Malartic payable metal sold excludes the | |||||||
(vii) The total cash costs per ounce 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 - Total Cash Costs per Ounce and Minesite Costs per Tonne for more information on the Company's calculation and use of total cash cost per ounce | |||||||
AGNICO EAGLE MINES LIMITED | |||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | |||
(thousands of | |||
(Unaudited) | |||
As at | As at | ||
June 30, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 921,989 | $ 338,648 | |
Inventories | 1,355,663 | 1,418,941 | |
Income taxes recoverable | 19,431 | 27,602 | |
Fair value of derivative financial instruments | 5,063 | 50,786 | |
Other current assets | 410,188 | 355,175 | |
Total current assets | 2,712,334 | 2,191,152 | |
Non-current assets: | |||
Goodwill | 4,157,672 | 4,157,672 | |
Property, plant and mine development | 21,173,067 | 21,221,905 | |
Investments | 393,867 | 345,257 | |
Deferred income and mining tax asset | 31,865 | 53,796 | |
Other assets | 822,401 | 715,167 | |
Total assets | $ 29,291,206 | $ 28,684,949 | |
LIABILITIES | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 770,802 | $ 750,380 | |
Share based liabilities | 16,730 | 24,316 | |
Interest payable | 21,200 | 14,226 | |
Income taxes payable | 128,940 | 81,222 | |
Current portion of long-term debt | 740,000 | 100,000 | |
Reclamation provision | 48,647 | 24,266 | |
Lease obligations | 40,873 | 46,394 | |
Fair value of derivative financial instruments | 24,032 | 7,222 | |
Total current liabilities | 1,791,224 | 1,048,026 | |
Non-current liabilities: | |||
Long-term debt | 1,101,670 | 1,743,086 | |
Reclamation provision | 973,895 | 1,049,238 | |
Lease obligations | 105,362 | 115,154 | |
Share based liabilities | 6,851 | 11,153 | |
Deferred income and mining tax liabilities | 5,045,164 | 4,973,271 | |
Other liabilities | 270,625 | 322,106 | |
Total liabilities | 9,294,791 | 9,262,034 | |
EQUITY | |||
Common shares: | |||
Outstanding - 500,413,442 common shares issued, less 527,154 shares held in trust | 18,525,686 | 18,334,869 | |
Stock options | 191,200 | 201,755 | |
Contributed surplus | — | 22,074 | |
Retained earnings | 1,373,099 | 963,172 | |
Other reserves | (93,570) | (98,955) | |
Total equity | 19,996,415 | 19,422,915 | |
Total liabilities and equity | $ 29,291,206 | $ 28,684,949 | |
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Restated(i) | Restated(i) | ||||||
REVENUES | |||||||
Revenues from mining operations | $ 2,076,621 | $ 1,718,197 | $ 3,227,858 | ||||
COSTS, INCOME AND EXPENSES | |||||||
Production(ii) | 771,984 | 743,253 | 1,555,569 | 1,396,397 | |||
Exploration and corporate development | 55,247 | 54,422 | 106,453 | 108,190 | |||
Amortization of property, plant and mine development | 378,389 | 386,314 | 735,614 | 690,273 | |||
General and administrative | 48,819 | 47,312 | 96,936 | 95,520 | |||
Finance costs | 34,473 | 35,837 | 70,738 | 59,285 | |||
Loss (gain) on derivative financial instruments | 19,608 | (26,433) | 65,543 | (32,972) | |||
Foreign currency translation loss (gain) | 363 | 4,014 | (4,184) | 4,234 | |||
Care and maintenance | 10,226 | 9,411 | 21,268 | 20,656 | |||
Revaluation gain(iii) | — | — | — | (1,543,414) | |||
Other expenses | 47,306 | 2,779 | 59,253 | 22,902 | |||
Income before income and mining taxes | 710,206 | 461,288 | 1,199,254 | 2,406,787 | |||
Income and mining taxes expense | 238,190 | 137,618 | 380,046 | 266,226 | |||
Net income for the period | $ 472,016 | $ 323,670 | $ 819,208 | $ 2,140,561 | |||
Net income per share - basic | $ 0.95 | $ 0.66 | $ 1.64 | $ 4.45 | |||
Net income per share - diluted | $ 0.94 | $ 0.65 | $ 1.64 | $ 4.43 | |||
Adjusted net income per share - basic(iv) | $ 1.07 | $ 0.65 | $ 1.83 | $ 1.23 | |||
Adjusted net income per share - diluted(iv) | $ 1.07 | $ 0.64 | $ 1.83 | $ 1.22 | |||
Weighted average number of common shares outstanding (in thousands): | |||||||
Basic | 499,437 | 494,138 | 498,528 | 481,553 | |||
Diluted | 500,443 | 495,509 | 499,794 | 482,978 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction | |||||||
(ii) Exclusive of amortization, which is shown separately | |||||||
(iii) Revaluation gain on the | |||||||
(iv) Adjusted net income per share is not a recognized measure under IFRS and this data may not be comparable to data reported by other companies. See Note Regarding Certain Measures of Performance- Adjusted Net Income and Adjusted Net Income per Share for a discussion of the composition and usefulness of this measure and a reconciliation to the nearest IFRS measure | |||||||
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, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Restated(i) | Restated(i) | ||||||
OPERATING ACTIVITIES | |||||||
Net income for the period | $ 472,016 | $ 323,670 | $ 819,208 | $ 2,140,561 | |||
Add (deduct) adjusting items: | |||||||
Amortization of property, plant and mine development | 378,389 | 386,314 | 735,614 | 690,273 | |||
Revaluation gain(ii) | — | — | — | (1,543,414) | |||
Deferred income and mining taxes | 81,223 | 5,568 | 94,147 | 41,671 | |||
Unrealized loss (gain) on currency and commodity derivatives | 10,048 | (50,088) | 62,532 | (65,976) | |||
Unrealized loss (gain) on warrants | 3,027 | 6,959 | (3,850) | 2,296 | |||
Stock-based compensation | 18,858 | 13,380 | 37,715 | 26,527 | |||
Foreign currency translation loss (gain) | 363 | 4,014 | (4,184) | 4,234 | |||
Other | 22,324 | 3,207 | 22,134 | 5,651 | |||
Changes in non-cash working capital balances: | |||||||
Income taxes | 46,426 | 65,428 | 46,802 | 89,405 | |||
Inventories | (37,028) | (28,815) | (8,856) | (26,747) | |||
Other current assets | (84,118) | (102,810) | (57,500) | (83,420) | |||
Accounts payable and accrued liabilities | 47,908 | 108,128 | (6,082) | 100,859 | |||
Interest payable | 1,900 | (12,955) | 6,831 | (10,307) | |||
Cash provided by operating activities | 961,336 | 722,000 | 1,744,511 | 1,371,613 | |||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and mine development | (404,098) | (423,621) | (791,685) | (808,555) | |||
Yamana transaction, net of cash and cash equivalents | — | — | — | (1,000,617) | |||
Contributions for acquisition of mineral assets | (3,175) | — | (7,099) | — | |||
Purchases of equity securities and other investments | (17,296) | (29,427) | (41,303) | (44,164) | |||
Other investing activities | (7) | 2,846 | 2,463 | 4,389 | |||
Cash used in investing activities | (424,576) | (450,202) | (837,624) | (1,848,947) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from Credit Facility | — | — | 600,000 | 1,000,000 | |||
Repayment of Credit Facility | — | (900,000) | (600,000) | (900,000) | |||
Proceeds from Term Loan Facility, net of financing costs | — | 598,958 | — | 598,958 | |||
Repayment of Senior Notes | — | (100,000) | — | (100,000) | |||
Long-term debt financing costs | — | — | (3,544) | — | |||
Repayment of lease obligations | (12,666) | (12,420) | (25,681) | (22,168) | |||
Disbursements to associates | — | (21,899) | — | (21,899) | |||
Dividends paid | (164,255) | (165,258) | (321,515) | (321,421) | |||
Repurchase of common shares | (50,000) | (1,786) | (76,041) | (16,350) | |||
Proceeds on exercise of stock options | 80,434 | 12,750 | 87,812 | 23,052 | |||
Common shares issued | 9,253 | 7,304 | 18,701 | 13,910 | |||
Cash (used in) provided by financing activities | (137,234) | (582,351) | (320,268) | 254,082 | |||
Effect of exchange rate changes on cash and cash equivalents | (2,162) | (1,566) | (3,278) | (2,847) | |||
Net increase (decrease) in cash and cash equivalents during the period | 397,364 | (312,119) | 583,341 | (226,099) | |||
Cash and cash equivalents, beginning of period | 524,625 | 744,645 | 338,648 | 658,625 | |||
Cash and cash equivalents, end of period | $ 921,989 | $ 432,526 | $ 921,989 | $ 432,526 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Interest paid | $ 24,651 | $ 43,437 | $ 49,903 | $ 56,488 | |||
Income and mining taxes paid | $ 127,600 | $ 74,828 | $ 258,377 | $ 139,765 | |||
Notes: |
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction. |
(ii) Revaluation gain on the |
View original content:SOURCE Agnico Eagle Mines Limited
FAQ
What were Agnico Eagle's Q2 2024 earnings?
How much free cash flow did Agnico Eagle generate in Q2 2024?
What is Agnico Eagle's full-year 2024 gold production guidance?
What are the cost projections for Agnico Eagle in 2024?
What are the key projects Agnico Eagle is investing in?
What dividend did Agnico Eagle declare for Q2 2024?
How many shares did Agnico Eagle repurchase in Q2 2024?
