(All amounts expressed in U.S. dollars unless
otherwise noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, Feb. 15,
2024 /CNW/ - Agnico Eagle Mines Limited
(NYSE:AEM) (TSX:AEM) ("Agnico Eagle" or the "Company") today
reported financial and operating results for the fourth quarter and
full year of 2023, as well as future operating guidance.
"We had a very strong close to 2023, with our fourth quarter
results driving a record year in terms of safety, operating and
financial performance. We achieved the top end of our gold
production guidance range and the mid-point of our cost guidance
ranges despite inflationary pressures throughout the year," said
Ammar Al-Joundi, Agnico Eagle's
President and Chief Executive Officer. "We are extremely pleased
with the results that our teams have accomplished with their hard
work this year and we have much to look forward to. We are
reporting record mineral reserves and a stable production profile
at industry leading costs, anchored by the two largest gold
operations in Canada, the Detour
Lake mine and the Canadian Malartic complex. We continue to advance
studies on optimizing our Abitibi platform and we expect to provide
additional updates in the first half of 2024. Our track record of
executing and delivering results demonstrates the strength of our
business and we are well positioned to create long-term value and
generate strong returns," added Mr. Al-Joundi.
Fourth quarter and full year 2023 highlights:
- Record quarterly gold production – Payable gold
production1 in the fourth quarter of 2023 was 903,208
ounces at production costs per ounce of $861, total cash costs per ounce2 of
$888 and all-in sustaining costs
("AISC") per ounce3 of $1,227. Gold production in the fourth quarter of
2023 was led by strong production at the Detour Lake mine, the
LaRonde complex and the Macassa mine, offsetting lower production
at the Fosterville mine
- Record quarterly cash provided by operating activities and
free cash flow – The Company reported a quarterly net loss of
$381.0 million or $0.77 per share and adjusted net
income4 of $282.3 million
or $0.57 per share for the fourth
quarter of 2023. Included in the quarterly net loss are impairment
charges totaling $667 million (net of
tax) or $1.35 per share relating to
the Macassa and Pinos Altos mines.
Cash provided by operating activities was $1.47 per share ($1.57 per share before working capital
adjustments5) and free cash flow5 was
$0.61 per share ($0.71 per share before working capital
adjustments5)
- Record annual safety performance, annual gold production and
free cash flow driven by solid operational performance –
Payable gold production in 2023 was 3,439,654 ounces at production
costs per ounce of $853, total cash
costs per ounce of $865 and AISC per
ounce of $1,179. Production for 2023
was at the very top end of the Company's 2023 guidance range of
3.24 million ounces to 3.44 million ounces. Total cash costs per
ounce were at the midpoint of the Company's 2023 guidance and AISC
per ounce were in the range of the Company's 2023 guidance. Free
cash flow for the full year 2023 was $947.4
million ($1,093.8 million
before changes in non-cash components of working capital)
- Record gold mineral reserves driven by declaration of
initial mineral reserves at East Gouldie – Year-end 2023 gold
mineral reserves increased by 10.5% to 53.8 million ounces of gold
(1,287 million tonnes grading 1.30 grams per tonne ("g/t") gold).
The year-over-year increase in mineral reserves is largely due to
the declaration of initial mineral reserves at East Gouldie, the
acquisition of the remaining 50% interest in the Canadian Malartic
complex and net mineral reserve additions at Macassa. At year-end
2023, measured and indicated mineral resources were 44.0 million
ounces (1,189 million tonnes grading 1.15 g/t gold) and inferred
mineral resources were 33.1 million ounces (411 million tonnes
grading 2.50 g/t gold), including initial underground inferred
mineral resources at Detour Lake. For further details, see the
Company's exploration news release dated February 15, 2024
- Stable three-year production outlook – Payable gold
production is forecast to be approximately 3.35 to 3.55 million
ounces in 2024 and approximately 3.40 to 3.60 million ounces in
2025 (unchanged from prior three-year guidance issued on
February 16, 2023 ("Previous
Guidance")). Payable gold production is forecast to remain stable
in 2026 at an expected range of approximately 3.40 to 3.60 million
ounces
- Unit costs reflect easing rate of inflation – Total cash
costs per ounce and AISC per ounce in 2024 are forecast to be
$875 to $925 and $1,200 to
$1,250, respectively. The midpoints
of these ranges each represent an approximate 4% increase when
compared to the full year 2023 total cash costs per ounce of
$865 and AISC per ounce of
$1,179. The expected cost increases
in 2024 are mostly related to labour, spare parts and
maintenance
- Capital expenditures forecast to be approximately
$1.65 billion in 2024 – Capital
expenditures in 2024 (excluding capitalized exploration) are
expected to increase relative to Previous Guidance of $1.40 to 1.60 billion. The expected increase in
2024 is mostly attributable to 100% ownership of Canadian Malartic
for the full year, inflation and additional capital expenditures at
Detour Lake
- Strategic optimization initiatives improve Canadian
production base, with further clarity on the medium term potential
to be provided through 2024 – Key developments in 2023 included
the declaration of commercial production at Canadian Malartic's
Odyssey South deposit, a 12% increase in mill throughput at Detour
Lake year-over-year and development of the Near Surface ("NSUR")
and Amalgamated Kirkland ("AK") deposits at Macassa. The Company
expects to provide updates on additional opportunities that are
being evaluated in the Abitibi region in the first half of 2024
- Odyssey mine at the Canadian Malartic complex – The
planned mining rate of 3,500 tonnes per day ("tpd") at Odyssey
South was reached earlier than anticipated and sustained through
the fourth quarter of 2023. Ramp development has also exceeded
target, reaching a depth of 715 metres as at December 31, 2023. The Company is evaluating the
potential to accelerate initial production from East Gouldie to
2026 from 2027. Surface construction is progressing as planned,
with approximately 65% completed at year-end, and shaft sinking
activities continued to ramp up through the quarter. Infill and
expansion drilling in 2023 resulted in the declaration of an
initial mineral reserve in the central portion of the East Gouldie
deposit of 5.17 million ounces of gold (47.0 million tonnes grading
3.42 g/t gold) and the extension of the East Gouldie mineral
resource laterally by 870 metres
- Detour Lake – The mill delivered a strong performance in
the fourth quarter of 2023, operating at a throughput rate of
71,826 tpd (equivalent to an annualized rate of approximately 26.2
million tonnes per annum ("Mtpa"). With sustained improvements
year-over-year, the Company now expects the mill to reach a
throughput rate of approximately 76,700 tpd (equivalent to an
annualized rate of approximately 28 Mtpa) late in the second half
of 2024, previously expected in 2025. At year-end 2023, the Company
reported an initial underground inferred mineral resource below and
to the west of the existing pit, totaling 1.56 million ounces of
gold (21.8 million tonnes grading 2.23 g/t gold) and continues to
evaluate the potential for underground mining. Exploration in 2024
is expected to continue to test the west plunge extension of the
main deposit. An exploration ramp is also being considered to
facilitate drilling that would increase confidence in the
continuity of the inferred mineral resource and, potentially, to
collect a bulk sample. The Company expects to provide an update on
mill optimization efforts, the Detour underground project and
ongoing exploration results in the first half of 2024
- Abitibi region of Quebec
and Ontario – Macassa's NSUR
and AK deposits have now been incorporated in the Company's
production guidance. At Upper Beaver, the Company is conducting a
trade-off analysis comparing transporting and processing ore at the
LaRonde mill to a standalone central mill for Upper Beaver and
satellite deposits. An exploration ramp and shaft are being
considered at Upper Beaver in order to upgrade and further explore
the deeper portions of the deposit. At Wasamac, the Company is
assessing hauling alternatives and the optimal mining rate for
transporting and processing ore at the Canadian Malartic mill. The
Company expects to complete internal technical evaluations for
Upper Beaver and Wasamac in the first half of 2024
- Amaruq mine at the Meadowbank complex – The Company
extended Amaruq's mine life to 2028 (previous mine life was to
2026), adding approximately 500,000 ounces of gold to the expected
mining profile, as a result of continuous improvement and cost
optimization efforts, positive infill drilling and positive
reconciliation to the geological model
- Hope Bay – At the Madrid deposit, the target area in the gap
between the Suluk and Patch 7 zones delivered strong drill results
in the quarter, including 16.3 g/t gold over 28.6 metres at 385
metres depth and 12.7 g/t gold over 4.6 metres at 677 metres depth.
Results confirm the potential to expand gold mineralization in the
Madrid deposit at depth and along
strike to the south. Based on recent exploration success, the
Company is evaluating a larger potential production scenario for
Hope Bay. The Company expects to report results from this internal
technical evaluation in 2025
- A quarterly dividend of $0.40
per share has been declared
___________________________
|
1
Payable production of a mineral means the quantity of a mineral
produced during a period contained in products that have been or
will be sold by the Company whether such products are shipped
during the period or held as inventory at the end of the
period.
|
2
Total cash costs per ounce is a non-GAAP ratio that is not a
standardized financial measure under IFRS and in this news release,
unless otherwise specified, is reported on (i) a per ounce of gold
produced basis, and (ii) a by-product basis. For a description of
the composition and usefulness of this non-GAAP measure and a
reconciliation of total cash costs to production costs on both a
by-product and a co-product basis, see "Reconciliation of Non-GAAP
Financial Performance Measures" and "Note Regarding Certain
Measures of Performance", respectively, below.
|
3 AISC
per ounce is a non-GAAP ratio that is not a standardized financial
measure under the IFRS and in this news release, unless otherwise
specified, is reported on (i) a per ounce of gold produced basis,
and (ii) a by-product basis. For a description of the composition
and usefulness of this non-GAAP measure and a reconciliation to
production costs and for all-in sustaining costs on both a
by-product and co-product basis, see "Reconciliation of Non-GAAP
Financial Performance Measures" and "Note Regarding Certain
Measures of Performance", respectively, below.
|
4
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
"Reconciliation of Non-GAAP Financial Performance Measures" and
"Note Regarding Certain Measures of Performance", respectively,
below.
|
5 Cash
provided by operating activities before working capital
adjustments, free cash flow and free cash flow before changes in
non-cash components of working capital 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 "Reconciliation of Non-GAAP Financial Performance
Measures" and "Note Regarding Certain Measures of Performance",
respectively, below.
|
Fourth Quarter and Full Year 2023 Results
Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on
Friday, February 16, 2024 at
11:00 AM (E.S.T.) to discuss
the Company's fourth quarter and full year 2023 financial and
operating results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via URL Entry:
To join the conference call without operator assistance, you may
register and enter your phone number at
https://emportal.ink/3vf5XBm to receive an instant automated call
back.
You can also dial direct to be entered to the call by an
Operator (see "Via Telephone" details below).
Via Telephone:
For those preferring to listen by telephone, please dial
416-764-8659 or toll-free 1-888-664-6392. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Replay Archive:
Please dial 416-764-8677 or toll-free 1-888-390-0541, access
code 178426#. The conference call replay will expire on
March 16, 2024.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
Fourth Quarter 2023 Production and Cost
Results
Production and Cost
Results Summary*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Gold production
(ounces)
|
|
903,208
|
799,438
|
|
3,439,654
|
3,135,007
|
Gold sales
(ounces)
|
|
874,629
|
788,902
|
|
3,364,132
|
3,148,593
|
Production costs per
ounce
|
|
$
861
|
$
834
|
|
$
853
|
$
843
|
Total cash costs per
ounce
|
|
$
888
|
$
863
|
|
$
865
|
$
793
|
AISC per
ounce
|
|
$
1,227
|
$
1,231
|
|
$
1,179
|
$
1,109
|
* Production and Cost
Results Summary reflect: (i) Agnico Eagle's 50% interest in the
Canadian Malartic complex up to and including March 30, 2023 and
100% thereafter; and (ii) Agnico Eagle's acquisition of the Detour
Lake, Macassa and Fosterville mines on February 8, 2022.
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior year primarily due to additional production
from the acquisition of the remaining 50% of the Canadian Malartic
complex following the closing of the transaction with Yamana Gold
Inc. (the "Yamana Transaction") and higher production from the
Macassa and Kittila mines, partially offset by lower production at
the Fosterville mine
- Full Year 2023 – Gold production increased when compared to the
prior year as a result of the additional production from the
acquisition of the remaining 50% of the Canadian Malartic complex,
a full year of contribution in 2023 from the Detour Lake, Macassa
and Fosterville mines (as compared
to 326 days during the year-ended 2022 following the closing of the
merger (the "Merger") with Kirkland Lake Gold Ltd. on February 8, 2022) and increased production from
the Meadowbank complex, partially offset by lower production at the
Fosterville mine and LaRonde
complex
Production Costs per Ounce
- Fourth Quarter of 2023 and Full Year 2023 – Production costs
per ounce increased when compared to the prior-year period
primarily due to higher production costs at most mine sites
resulting from inflation, particularly at the Meliadine mine, where
there was also higher consumption of ore stockpiles combined with
lower gold production, and at the Canadian Malartic complex, where
there were higher open pit mining costs combined with lower gold
production
Total Cash Costs per Ounce
- Fourth Quarter of 2023 and Full Year 2023 – Total cash costs
per ounce increased when compared to the prior-year period
primarily due to higher operating costs at most mine sites
resulting from inflation and higher royalties arising from higher
gold prices and the acquisition of the remaining 50% of the
Canadian Malartic complex, partially offset by higher
production
AISC per Ounce
- Fourth Quarter of 2023 – AISC per ounce decreased when compared
to the prior-year period due to higher production during the period
and lower sustaining capital expenditures during the period,
partially offset by higher total cash costs per ounce
- Full Year 2023 – AISC per ounce increased when compared to the
prior year due to the same reasons affecting the higher total cash
costs per ounce in the period and higher sustaining capital
expenditures, partially offset by higher production during the
period
Fourth Quarter 2023 Financial Results
Financial Results
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022**
|
|
Dec 31,
2023
|
Dec 31,
2022**
|
Realized gold price
($/ounce)6
|
|
$
1,982
|
$
1,728
|
|
$
1,946
|
$
1,797
|
Net (loss) income ($
millions)
|
|
$
(381.0)
|
$
194.1
|
|
$
1,941.3
|
$
670.2
|
Adjusted net income ($
millions)
|
|
$
282.3
|
$
174.5
|
|
$
1,095.9
|
$
1,003.6
|
EBITDA ($
millions)7
|
|
$
102.6
|
$
568.6
|
|
$
3,980.9
|
$
2,293.0
|
Adjusted EBITDA ($
millions)7
|
|
$
842.5
|
$
580.6
|
|
$
3,236.5
|
$
2,706.1
|
Cash provided by
operating activities ($ millions)
|
|
$
727.9
|
$
380.5
|
|
$
2,601.6
|
$
2,096.6
|
Cash provided by
operating activities before working capital adjustments ($
millions)
|
|
$
777.5
|
$
485.5
|
|
$
2,748.0
|
$
2,115.9
|
Capital
expenditures*
|
|
$
436.7
|
$
457.2
|
|
$
1,600.9
|
$
1,536.9
|
Free cash flow ($
millions)
|
|
$
302.1
|
$
(20.3)
|
|
$
947.4
|
$
558.4
|
Free cash flow before
changes in non-cash components of working capital ($
millions)
|
|
$
351.7
|
$
84.7
|
|
$
1,093.8
|
$
577.6
|
|
|
|
|
|
|
|
Net (loss) income per
share (basic)
|
|
$
(0.77)
|
$
0.43
|
|
$
3.97
|
$
1.53
|
Adjusted net income per
share (basic)
|
|
$
0.57
|
$
0.38
|
|
$
2.24
|
$
2.29
|
Cash provided by
operating activities per share (basic)
|
|
$
1.47
|
$
0.84
|
|
$
5.32
|
$
4.79
|
Cash provided by
operating activities before working capital adjustments per share
(basic)
|
|
$
1.57
|
$
1.07
|
|
$
5.62
|
$
4.83
|
Free cash flow per
share (basic)
|
|
$
0.61
|
$
(0.04)
|
|
$
1.94
|
$
1.28
|
Free cash flow before
working capital adjustments per share (basic)
|
|
$
0.71
|
$
0.19
|
|
$
2.24
|
$
1.32
|
*Includes capitalized
exploration
|
** Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Merger.
|
Net Income
- Fourth Quarter of 2023
- Net loss was $381.0 million
($0.77 per share). This result
includes the following items (net of tax): impairment losses of
$667.4 million ($1.35 per share), derivative gains on financial
instruments of $50.7 million
($0.10 per share), non-recurring tax
adjustment and change in tax rate and foreign currency translation
losses on deferred tax liabilities of $26.4
million ($0.05 per share), net
asset disposals losses of $16.2
million ($0.03 per share) and
foreign exchange and other losses of $4.0
million ($0.01 per share)
- Excluding the above items results in adjusted net income of
$282.3 million or $0.57 per share for the fourth quarter of
2023
- Included in the fourth quarter of 2023 net loss, and not
adjusted above, is a non-cash stock option expense of $2.4 million ($0.01
per share)
- Net loss of $381.0 million in the
fourth quarter of 2023 compared to net income of $194.1 million in the prior-year period primarily
due to impairment losses and higher amortization related to the
acquisition of the remaining 50% of the Canadian Malartic complex,
partially offset by stronger mine operating margins8
from higher realized gold prices and higher sales volumes resulting
from the acquisition of the remaining 50% of the Canadian Malartic
complex, and lower exploration and corporate development costs
- Full Year 2023 – Net income increased compared to the prior
year primarily due to a remeasurement gain at the Canadian Malartic
complex resulting from the application of purchase accounting
relating to a business combination attained in stages, which
requires the remeasurement of the Company's previously held 50%
interest in the Canadian Malartic complex to fair value, higher
realized gold prices and higher sales volumes, partially offset by
impairment losses and higher amortization
___________________________
6
Realized gold price is calculated as gold revenues from mining
operations divided by the volume of gold ounces sold.
7
"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
"Reconciliation of Non-GAAP Financial Performance Measures" and
"Note Regarding Certain Measures of Performance", respectively,
below.
8 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 "Summary of Operations Key
Performance Indicators" and "Note Regarding Certain Measures of
Performance", respectively, below.
Impairments
In the fourth quarter of 2023, an impairment loss (net of tax)
of $667 million was incurred in connection with the impairment
review performed in accordance with the requirements of
International Financial Reporting Standards ("IFRS"), of which
$594 million related to the Macassa
mine and $73 million related to the
Pinos Altos mine. Since acquiring
the Macassa mine as a result of the Merger, the Company has taken
steps to improve the operational performance of the mine. The
Macassa mine realized better operating performance and productivity
in 2023 as compared to the pre-Merger period, driven in part, by
the completion of the #4 Shaft project that increased the ore
hoisting capacity to approximately 4,000 tpd and improvements to
the ventilation in the deeper portion of the mine. Despite these
improvements, an impairment loss (net of tax) of $594 million was realized in the quarter, with
$421 million of the loss relating to
goodwill and $173 million relating to
non-current assets of the Macassa mine.
Goodwill relating to the Macassa mine was recognized at the date
of the Merger as part of the purchase price allocation. Goodwill is
not an amortizable asset under IFRS and as such, once recognized is
susceptible to future impairment. Continued work on the mineral
resource model has resulted in more ore tonnes but at lower grades
which, coupled with inflationary pressures on costs and capital
expenditures, resulted in a fair value that was lower than
Macassa's carrying value as at December 31,
2023. The Macassa mine has produced over 6 million ounces of
gold since 1933, and the Company continues to see geological
potential at Macassa as demonstrated by the mineral reserves
replacement of 171% of its mining depletion in 2023 and encouraging
drill results on the property. In addition, the mineralized
structures along strike and at depth of the South Mine complex and
Main Break are prospective for ongoing expansion of the mineral
resource base at the site. Overall, the Company believes that the
Macassa mine has the potential to maintain production in excess of
300,000 ounces of gold per year based on expected exploration
results.
The Pinos Altos mine has been
in operation since 2009 and is approaching the end of its mine
life. An impairment loss (net of tax) of $73
million was realized in the quarter due to inflationary
pressures on costs and the additional ground support required at
the underground mine, and the strengthening of the Mexican peso
relative to the U.S. dollar. Exploration is ongoing with the goal
of discovering and expanding other satellite zones near the
Pinos Altos mine.
Adjusted EBITDA
- Fourth Quarter of 2023 – 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 resulting from the acquisition of the remaining 50% of the
Canadian Malartic complex and lower exploration and corporate
development costs
- Full Year 2023 – Adjusted EBITDA increased when compared to the
prior year primarily due to the reasons set out above, and as a
result of a full year of contribution in 2023 from the Detour Lake,
Macassa and Fosterville mines (as
compared to 326 days during the year-ended 2022 following the
closing of the Merger)
Cash Provided by Operating Activities
- Fourth Quarter of 2023 – Cash provided by operating activities
and cash provided by operating activities before working capital
adjustments increased when compared to the prior-year period
primarily due to higher revenues from higher sales volumes from the
acquisition of the remaining 50% of the Canadian Malartic complex
and higher realized gold prices, partially offset by higher
production costs
- Full Year 2023 – Cash provided by operating activities and cash
provided by operating activities before working capital adjustments
increased when compared to the prior year primarily due to higher
revenues from the acquisition of the remaining 50% of the Canadian
Malartic complex, higher sales volumes from a full year of
contribution in 2023 from the Detour Lake, Macassa and Fosterville mines (as compared to 326 days
during the year-ended December 31,
2022 following the closing of the Merger) and from higher
realized gold prices
Free Cash Flow Before Changes in Non-Cash Components of
Working Capital
- Fourth Quarter of 2023 and Full Year 2023 – Free cash flow
before changes in non-cash components of working capital was a
record and increased when compared to the prior-year period due to
the reasons described above relating to cash provided by operating
activities, partially offset by higher additions to property, plant
and mine development
Capital Expenditures
The following table sets out a summary of capital expenditures
(including sustaining capital expenditures9 and
development capital expenditures9) and capitalized
exploration in the fourth quarter of 2023 and the full year
2023.
Summary of Capital
Expenditures
|
|
|
|
|
|
(In thousands of U.S.
dollars)
|
|
|
|
|
|
|
Capital
Expenditures*
|
|
Capitalized
Exploration
|
|
Three Months
Ended
|
Year
Ended
|
|
Three Months
Ended
|
Year
Ended
|
|
Dec 31,
2023
|
Dec 31,
2023
|
|
Dec 31,
2023
|
Dec 31,
2023
|
Sustaining Capital
Expenditures
|
|
|
|
|
|
LaRonde
complex
|
24,829
|
81,043
|
|
429
|
2,038
|
Canadian Malartic
complex**
|
18,809
|
91,028
|
|
—
|
—
|
Goldex mine
|
11,530
|
25,908
|
|
737
|
1,295
|
Detour Lake
mine
|
67,123
|
249,765
|
|
—
|
—
|
Macassa
mine
|
15,334
|
43,333
|
|
554
|
1,696
|
Meliadine
mine
|
19,034
|
67,947
|
|
2,210
|
7,328
|
Meadowbank
complex
|
21,297
|
121,653
|
|
—
|
—
|
Hope Bay
project
|
—
|
147
|
|
—
|
—
|
Fosterville
mine
|
8,978
|
33,751
|
|
344
|
895
|
Kittila
mine
|
15,789
|
47,355
|
|
725
|
2,184
|
Pinos Altos
mine
|
6,612
|
28,449
|
|
429
|
1,692
|
La India
mine
|
—
|
100
|
|
(6)
|
—
|
Total Sustaining
Capital Expenditures
|
209,335
|
$
790,479
|
|
$
5,422
|
$
17,128
|
|
|
|
|
|
|
Development Capital
Expenditures
|
|
|
|
|
|
LaRonde
complex
|
17,637
|
68,930
|
|
—
|
—
|
Canadian Malartic
complex**
|
47,607
|
160,513
|
|
2,902
|
9,447
|
Goldex mine
|
2,808
|
22,032
|
|
42
|
2,459
|
Akasaba West
project
|
7,880
|
34,945
|
|
—
|
—
|
Detour Lake
mine
|
59,100
|
140,388
|
|
7,571
|
32,515
|
Macassa
mine
|
21,322
|
75,125
|
|
4,798
|
26,105
|
Meliadine
mine
|
22,571
|
106,953
|
|
3,419
|
11,927
|
Meadowbank
complex
|
(277)
|
80
|
|
—
|
—
|
Hope Bay
project
|
128
|
4,426
|
|
—
|
—
|
Fosterville
mine
|
11,873
|
33,575
|
|
4,718
|
19,218
|
Kittila
mine
|
3,026
|
26,410
|
|
2,151
|
5,053
|
Pinos Altos
mine
|
213
|
4,196
|
|
(848)
|
1,101
|
Other
|
2,423
|
7,023
|
|
840
|
840
|
Total Development
Capital Expenditures
|
$
196,311
|
$
684,596
|
|
$
25,593
|
$
108,665
|
Total Capital
Expenditures
|
$
405,646
|
$
1,475,075
|
|
$
31,015
|
$
125,793
|
* Excludes capitalized
exploration
|
**The information set
out in this table reflects the Company's 50% interest in the
Canadian Malartic complex up to and including March 30, 2023 and
100% interest thereafter.
|
___________________________
|
9
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 per the
consolidated statements of cash flows, see "Reconciliation of
Non-GAAP Financial Performance Measures" and "Note Regarding
Certain Measures of Performance", respectively, below.
|
Investment Grade Balance Sheet Remains Strong
As at December 31, 2023, the
Company's long-term debt was $1,843.1
million, a decrease of $99.5
million when compared to the prior quarter, reflecting a
repayment of the Company's unsecured revolving bank credit
facility. As at December 31, 2023, no amounts were outstanding
under the Credit Facility.
Cash and cash equivalents decreased slightly when compared to
the prior quarter primarily due to higher cash used in financing
activities related to the repayment of the Company's unsecured
revolving bank credit facility.
The following table sets out the calculation of net
debt10, which decreased by $82.6
million when compared to the prior quarter.
Net Debt
Summary
|
|
(in millions of U.S.
dollars)
|
|
|
|
|
|
As at
|
As at
|
|
|
Dec 31,
2023
|
Sep 30,
2023
|
Current portion of
long-term debt
|
|
$
100.0
|
$
100.0
|
Non-current portion of
long-term debt
|
|
1,743.1
|
1,842.6
|
Long-term
debt
|
|
$
1,843.1
|
$
1,942.6
|
Less: cash and cash
equivalents
|
|
(338.6)
|
(355.5)
|
Net
debt
|
|
$
1,504.5
|
$
1,587.1
|
In addition to the quarterly dividend, the Company believes that
its normal course issuer bid ("NCIB") provides a flexible tool as
part the Company's overall capital allocation program and
objectives and generates value for shareholders. In the fourth
quarter of 2023, no purchases were made under the NCIB. In the full
year 2023, the Company repurchased 100,000 common shares for an
aggregate of $4.8 million under the
NCIB. The NCIB permits the Company to purchase up to $500.0 million of its common shares subject to a
maximum of 5% of its issued and outstanding common shares.
Purchases under the NCIB may continue for up to one year from the
commencement day on May 4, 2023.
____________________________
10 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 "Reconciliation of non-GAAP Financial
Performance Measures" and "Note Regarding Certain Measures of
Performance", respectively, below.
Credit Facility
As at December 31, 2023, available
liquidity under the Company's unsecured revolving bank credit
facility was approximately $1.2
billion, not including the uncommitted $600.0 million accordion feature.
On February 12, 2024, the Company
replaced its $1.2 billion unsecured
revolving bank credit facility with a new $2.0 billion unsecured revolving bank credit
facility, including an increased uncommitted accordion feature of
$1 billion, and having a maturity
date of February 12, 2029. In
addition to the increased size and extended term of the new
unsecured revolving bank credit facility, the new credit facility
includes enhancements to its terms and conditions that reinforces
the Company's credit profile and improves its financial flexibility
while strengthening its financial position. At the same time, the
Company's $600.0 million term loan
was amended to reflect the same enhancements to the terms and
conditions as are in the new unsecured revolving credit facility.
The investment grade credit ratings issued by Moody's of Baa2 with
a Positive Outlook and Fitch Ratings at BBB+ with a Stable Outlook
reflect the Company's strong business and credit profile, while
maintaining low leverage and conservative financial policies and
recognizing the benefits of the Company's size and scale and
operations in favourable mining jurisdictions. The Company remains
committed to maintaining strong financial health and an investment
grade balance sheet.
Hedges
The Company continues to benefit from a stronger U.S. dollar
against the currencies in the jurisdictions in which it operates,
the Canadian dollar, Euro, Australian dollar and Mexican peso.
Approximately 67% of the Company's estimated Canadian dollar
exposure for 2024 is hedged at an average floor price above
1.34 C$/US$. Approximately 24% of the
Company's estimated Euro exposure for 2024 is hedged at an
average floor price of approximately 1.09
US$/EUR. Approximately 63% of the Company's estimated
Australian dollar exposure for 2024 is hedged at an average floor
price of approximately 1.47 A$/US$.
The Company's full year 2024 cost guidance is based on assumed
exchange rates of 1.34 C$/US$,
1.10 US$/EUR, 1.45 A$/US$ and 16.50
MXP/US$.
Including the diesel purchased for the Company's Nunavut operations that was delivered in the
2023 sealift, approximately 50% of the Company's diesel exposure
for 2024 is hedged at an average benchmark price of $0.72 per litre (excluding transportation and
taxes), which is expected to reduce the Company's exposure to
diesel price volatility in 2024. The Company's full year 2024 cost
guidance is based on an assumed diesel benchmark price of
$0.80 per litre (excluding
transportation and taxes).
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs. Current hedging positions are not factored into 2024 and
future guidance.
Dividend Record and Payment Dates for the First Quarter of
2024
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.40 per common share,
payable on March 15, 2024 to
shareholders of record as of March 1,
2024. Agnico Eagle has declared a cash dividend every year
since 1983.
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
|
Dividend Reinvestment Plan
See the following link for information on the Company's dividend
reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency
exchange program, please contact Computershare Trust Company of
Canada by phone at 1-800-564-6253
or online at www.investorcentre.com or
www.computershare.com/investor.
Environment, Social and Governance Highlights
Record quarterly and annual safety performance
- The Company is committed to maintaining consistently high
health and safety standards. In 2020, the Company launched the
"Towards Zero Accidents initiative" to reduce workplace injuries
and reach its goal of zero accidents. This program has helped the
Company to improve its safety performance year over year and to
register in 2023 its best quarterly and annual safety performance
in its 66-year history, with a Global Injury Frequency11
(employees and contractors) at 1.8 and 2.15, respectively. This
represents a 35% improvement to the Company's 2022 safety
performance
Community Relations, Governance and People
- Reconciliation Action Plan with Indigenous Peoples – The
Company expects to publish its first Reconciliation Action Plan and
begin implementation in the second half of 2024. This plan aims at
responding to, among other things, the United Nations Declaration
on the Rights of Indigenous People, builds upon the Company's
various Indigenous programs and initiatives, and weaves these
activities into a comprehensive strategy. Significant progress was
made in 2023 on developing the Reconciliation Action Plan, with
more than 200 employees, stakeholders and rights holders being
consulted during the year. In addition, employees at the Company's
Canadian operations completed over 3,200 hours of cultural
awareness training and engaged in over 135 activities aimed at
raising awareness of Indigenous Peoples' history and culture
- Employee Engagement – The Company continued to see
year-over-year increases in employee satisfaction and solicited
their input via the Great Place to Work Survey. The Company
believes employee satisfaction and engagement are key drivers of
its high employee retention rate across the regions where it
operates
- Forbes' Canada's Best
Employers – Recognized this year on Forbes' list, which is an
annual ranking based on employees and other professionals
recommending the Company as a desirable employer
- Dr. Leanne Baker program – 2023
marked the second year of the Dr. Leanne Baker Scholarship and
Development Program to support women working for Agnico Eagle and
facilitate their advancement into leadership positions. The first
cohort of six women completed the program and the second cohort of
eight women completed their first year of the two year program
- Donations
- In the fourth quarter of 2023, the Company committed
approximately C$5 million to a
multiyear program supporting health and welfare in Nunavut through initiatives like food security
and "on the land" traditional activities
- In the fourth quarter of 2023, the Company made a 10-year,
C$3 million commitment to the
Canadian Cancer Society to improve the lives of people affected by
cancer living in rural and remote communities in Northern Ontario. The commitment will create
the 'Canadian Cancer Society Agnico Eagle Cancer Access and
Navigation Hub', which provides improved access for Northern
Ontario Indigenous populations to receive culturally appropriate
and relevant cancer resources and support
Towards Sustainable Mining
- The Company's operating sites successfully completed their
Towards Sustainable Mining internal audits. Implementation of the
Towards Sustainable Mining program is progressing well at Detour
Lake, Macassa and Fosterville
____________________________
|
11
Global Injury Frequency is based on per million hours
worked
|
Meliadine Extension Permit
- The Company previously submitted an amendment to the existing
project certificate for the Meliadine mine which included the
extension of the Type A Water license (which expires in 2031), the
addition of tailings, water and waste management infrastructure at
the Pump, F-Zone, Wesmeg and Discovery deposits, a wind farm
project and the potential extension of the mine life at Meliadine
by 11 years beyond the current mine life (the "Extension
Project")
- In November 2023, the Nunavut
Impact Review Board ("NIRB") provided a recommendation against the
proposed amendment to the Meliadine mine's permit for the Extension
Project. The Company was disappointed by the NIRB's recommendation
and has withdrawn the amendment to the Meliadine mine's permit for
the Extension Project. As most of the current life of mine
components were already approved under the existing project
certificate (approved in 2015) and in order to avoid further
delays, in January 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
- The Company has engaged in positive dialogue with the NIRB
since the recommendation against the Extension Project. The Company
will consider resubmitting a new proposal for the extension of the
mine life at Meliadine in the future
Gold Mineral Reserves Increase 10.5% to Record 53.8 Moz at
Year-End 2023
At December 31, 2023, the
Company's proven and probable mineral reserve estimate totalled
53.8 million ounces of gold (1,287 million tonnes grading 1.30 g/t
gold). This represents a 10.5% (5.1 million ounce) increase in
contained ounces of gold compared to the proven and probable
mineral reserve estimate of 48.7 million ounces of gold (1,186
million tonnes grading 1.28 g/t gold) at year-end 2022 (see the
Company's news release dated February 16,
2023 for details regarding the Company's December 31, 2022 proven and probable mineral
reserve estimate).
The year-over-year increase in mineral reserves at December 31, 2023 is largely due to a substantial
new mineral reserve addition of 5.2 million ounces of gold at the
East Gouldie deposit at the Odyssey mine. The acquisition of
the remaining 50% interest in the Canadian Malartic complex as part
of the Yamana Transaction also contributed to adding 1.5 million
ounces of gold in mineral reserves.
Mineral reserves were calculated using a gold price of
$1,400 per ounce for all operating
assets except the Detour Lake open pit for which a gold price of
$1,300 per ounce was used, and using
variable assumptions for the pipeline projects (see "Assumptions
used for the December 31, 2023
mineral reserve and mineral resource estimates reported by the
Company" below for more details).
Gold Mineral Resources
At December 31, 2023, the
Company's measured and indicated mineral resource estimate totalled
44.0 million ounces of gold (1,189 million tonnes grading 1.15 g/t
gold). This represents a 0.6% (0.3 million ounce) decrease in
contained ounces of gold compared to the measured and indicated
mineral resource estimate at year-end 2022 (see the Company's news
release dated February 16, 2023 for
details regarding the Company's December 31,
2022 measured and indicated mineral resource estimate).
The year-over-year decrease in measured and indicated mineral
resources is primarily due to the upgrade of mineral resources at
East Gouldie to mineral reserves, largely offset by the successful
conversion of inferred mineral resources into measured and
indicated mineral resources and the acquisition of the remaining
50% interest in the Canadian Malartic complex and the Wasamac
project as a result of the Yamana Transaction.
At December 31, 2023, the
Company's inferred mineral resource estimate totalled 33.1 million
ounces of gold (411 million tonnes grading 2.50 g/t gold). This
represents a 26% (6.8 million ounce) increase in contained ounces
of gold compared to the inferred mineral resource estimate a year
earlier (see the Company's news release dated February 16, 2023 for details regarding the
Company's December 31, 2022 inferred
mineral resource estimate).
The year-over-year increase in inferred mineral resources is
primarily due to the acquisition of the remaining 50% interest in
the Canadian Malartic complex and the Wasamac project as part of
the Yamana Transaction as well as an initial underground inferred
mineral resource at Detour Lake.
For detailed mineral reserves and mineral resources data,
including the economic parameters used to estimate the mineral
reserves and mineral resources, see "Detailed Mineral Reserve and
Mineral Resource Data (as at December 31,
2023)" and "Assumptions used for the December 31, 2023 mineral reserve and mineral
resource estimates reported by the Company" below, as well as the
Company's exploration news release dated February 15, 2024.
Update on Key Value Drivers and Pipeline Projects
Highlights on key value drivers (Odyssey project, Detour Lake
mine and optimization of assets and infrastructure in the Abitibi
region of Quebec), the Hope Bay
project and the San Nicolás project are set out below. Details on
certain mine expansion projects (Macassa new ventilation system,
Meliadine Phase 2 expansion and Amaruq underground) are set out in
the applicable operational sections of this news release.
Odyssey Project
Successful infill drilling in 2023 at the Odyssey mine continued
to improve the confidence in the mine plan and resulted in the
declaration of initial mineral reserves of 5.2 million ounces of
gold (47 million tonnes grading 3.42 g/t gold) in the central
portion of the East Gouldie deposit as at December 31, 2023. The aggressive exploration
program in 2023 also continued to demonstrate geological upside
potential, with expansion drilling resulting in the extension of
the East Gouldie inferred mineral resource laterally to the west by
approximately 870 metres. Recent drilling results demonstrate that
the corridor remains open to the east with high potential to
categorize a large area as inferred mineral resources by year-end
2024. Highlight intercepts include 6.2 g/t gold over 6.7 metres at
1,300 metres depth to the west and 6.7 g/t gold over 13.5 metres at
1,470 metres depth to the east of the deposit. In 2024, the Company
will continue to test the east and west extensions of the East
Gouldie deposit, with the objective of potentially adding a new
mining front. For further details on the exploration results at
Odyssey, see the Company's exploration news release dated
February 15, 2024.
At Odyssey South, the planned mining rate of 3,500 tpd was
reached in October 2023 and sustained
through the fourth quarter of 2023. Gold production from
underground was approximately 20,000 ounces in the fourth quarter
of 2023, which is the expected quarterly production rate for 2024
to 2026. Stope reconciliation at Odyssey South remains positive,
largely from the contribution of the internal zones. At year-end
2023, an additional 150,000 ounces of gold included in the mineral
reserve estimate are attributed to the Odyssey South deposit and
internal zones as the understanding of these two mineralized areas
improves with ongoing drilling and mine development. The Company
continues to advance the delineation drilling to help improve the
predictability and modeling of these zones.
Underground development was ahead of plan in the fourth quarter
of 2023. A record 1,236 metres of development was achieved in
October 2023, which is above with the
target rate for 2024 of 1,200 metres per month. Scoops, jumbos and
cable bolters are now consistently being operated remotely, which
drives improvements in development cycle time and overall
development productivity. In the first quarter of 2024, the Company
expects to test remotely operated trucks and a battery operated
scoop.
Advancing the main ramp remains the key development focus. The
Company achieved a lateral development rate of 165 metres per month
in 2023, exceeding the target rate of 140 metres per month. As at
December 31, 2023, the ramp was at a
depth of 715 metres and the Company now expects to reach the first
level of the top of the East Gouldie deposit at a depth of 750
metres in the first quarter of 2024. As a result, the Company is
evaluating the potential to accelerate initial production from East
Gouldie to 2026.
Shaft sinking activities continued to ramp-up through the fourth
quarter of 2023. Equipment reliability issues were resolved, with
the sinking rate improving to 1.5 metres per day in December 2023 and expected to be approximately at
the target of 2.0 metres per day in the first quarter of 2024. As
at December 31, 2023, the shaft had
reached a depth of approximately 233 metres. To help advance the
shaft sinking, the Company has completed pre-sinking of the shaft
from Levels 26 to 36 and is now advancing pre-sinking between
Levels 54 to 64. The Company still expects to complete excavation
of the shaft in 2027.
Surface construction progressed as planned and on budget in the
fourth quarter of 2023 and approximately 65% of the project surface
construction was completed as at December
31, 2023. The service hoist is expected to be operational to
a temporary loading station at Level 102 (1,050 metres below
surface) by 2025. The paste backfill plant operated above design
capacity of 4,000 tpd in the fourth quarter of 2023 and the
conceptual engineering for the second phase of the paste plant has
been initiated. In the second phase, which is expected to be
completed in 2027, the paste backfill plant will be expanded to a
capacity of approximately 20,000 tpd.
In regional exploration during the fourth quarter of 2023,
drilling targeted the adjacent Camflo property to the north and
potential mineralization analogous to the Odyssey South and Odyssey
North deposits on the Rand Malartic property to the east. The
Company believes that a long-term exploration strategy of surface
and underground drilling on the recently consolidated lands at the
Canadian Malartic complex has the potential to lead to significant
discoveries.
Detour Lake Mine
In the fourth quarter of 2023, the mill delivered its second
best quarterly mill throughput, operating at a rate of 71,826 tpd
(equivalent to an annualized rate of approximately 26.2 Mtpa),
despite a lower than anticipated runtime of 90% related to an
unplanned power outage and plugged cyclone feed pump lines. Several
initiatives aimed at enhancing runtime and mill throughput are
underway. These efforts include a comprehensive review of
maintenance practices related to the higher throughput and the
optimization of the crusher, SAG mill and ball mill circuits. With
sustained improvements year-over-year, the Company now expects the
mill to reach a throughput rate of approximately 76,700 tpd
(equivalent to an annualized rate of approximately 28 Mtpa) in the
second half of 2024, compared to 2025 previously. The Company also
sees the potential to reach a mill throughput rate of 79,450 tpd
(equivalent to an annualized rate of approximately 29 Mtpa) in 2026
through the implementation of advanced process control (expert
systems) and further runtime improvements. An internal analysis to
better define these opportunities is expected to be completed in
2024.
In 2023, the exploration program at Detour Lake successfully
defined continuity of mineralization below and west of the mineral
reserves pit. This resulted in the addition of 1.56 million ounces
of gold (21.8 million tonnes grading 2.23 g/t gold) in inferred
mineral resources outside the mineral resource pit. Work is ongoing
to determine the optimal transition point from open pit to
underground mining. This transition point will help determine the
mineral resources currently included in the resource pit that could
instead be mined from underground. The resulting larger mineable
underground mineral resource is expected to form the basis for an
underground project at Detour Lake.
The preliminary underground mine concept under evaluation adopts
many of the design criteria and parameters of the Company's
existing operating mines in the region. The Company is currently
evaluating a number of bulk mining scenarios. Mine development and
production is envisioned to be done via ramp. Haulage of ore and
waste by conveyor is a potential approach given the orebody
plunging to the West. The mine could also utilize a combination of
conventional and automated production equipment, similar to the
equipment currently employed at the Company's Odyssey mine.
In 2024, exploration will continue to test and extend the west
plunge of the main deposit. The Company is considering building an
exploration ramp to increase confidence in the mineralization's
continuity in the inferred resource envelope and to potentially
collect a bulk sample. The Company expects to provide an update on
mill optimization efforts, the Detour underground project and
ongoing exploration results in the first half of 2024.
Optimization of Other Assets and Infrastructure in the
Abitibi Region
At Macassa, mining of the NSUR and AK deposits through existing
infrastructure was one of the first strategic optimization
opportunities identified at the time of the Merger. At year-end
2023, the NSUR and AK deposits contributed approximately 23,000
ounces of gold in mineral reserves (0.12 million tonnes grading
5.93 g/t gold) and approximately 160,000 ounces of gold in mineral
reserves (0.74 million tonnes grading 6.69 g/t gold) to the Macassa
complex, respectively. Both deposits have now been incorporated
into Macassa's production guidance for 2024 to 2026.
The NSUR and AK deposits are accessible from an existing surface
ramp at Macassa (the "Portal"). A traditional truck and scoop tram
approach has been selected for underground mucking and hauling,
similar to the approach at LaRonde Zone 5 ("LZ5"). The deposits
will be mined using long-hole open stoping and the stopes will be
backfilled using cemented rockfill. At Macassa, the mill is
expected to reach its nominal capacity of 1,650 tpd in mid-2024.
The LZ5 processing facility at the LaRonde complex, approximately
130 kilometres away, can accommodate the processing of ore from the
NSUR and AK deposits starting in the second half of 2024, thus
avoiding capital expenditures that would otherwise be required for
a mill expansion at Macassa. Production from the NSUR deposit is
planned to be processed at the Macassa mill in the first half of
2024 and at the LZ5 processing facility in the second half of 2024.
Production from the AK deposit, which is expected to begin in the
second half of 2024 with the extraction of a 25,000 tonne bulk
sample, is also planned to be processed at the LZ5 processing
facility. Ore will be hauled by truck from the NSUR and AK deposits
to the LZ5 processing facility. Production from these two deposits
is forecast to be approximately 19,000 ounces of gold in 2024 and
between 35,000 ounces to 50,000 ounces of gold from 2025 to 2028.
The Company believes that the AK area remains prospective for
future mineral resource growth.
At Upper Beaver, the Company continued to advance internal
studies in the fourth quarter of 2023 to assess potential
production opportunities, including comparison of transporting and
processing ore at the LaRonde mill to a standalone central mill for
Upper Beaver and satellite deposits. The Upper Beaver gold-copper
deposit is expected to be mined by conventional underground
methods, such as long hole open stoping with stopes to be
backfilled with paste and waste rock. The Company is evaluating
scenarios with a mining rate of approximately 5,000 tpd and
production between 200,000 ounces and 230,000 ounces of gold per
year and approximately 9 million to 10 million pounds of copper per
year. Under these scenarios, initial production could potentially
commence as early as 2030. The Company is also considering the
construction of an exploration ramp and shaft in order to be used
to upgrade mineral resources and further explore the deeper
portions of the deposit. The exploration ramp and shaft would be
considered permanent infrastructure and sized accordingly to
accommodate the potential production phase in the event the project
is approved for development.
At Wasamac, the Company continues to assess various scenarios to
define the optimal mining rate and milling strategy for the
project. While these evaluations continue, the Company has decided
to not include the historical mineral reserve estimate at Wasamac
in the Company's mineral reserve estimate. Rather, the Company has
classified the Wasamac project entirely as mineral resources. The
measured and indicated mineral resource estimate at year-end 2023
for the Wasamac project totalled 2.2 million ounces of gold (27.8
million tonnes grading 2.43 g/t) and inferred mineral resources
were 0.8 million ounces of gold (9.2 million tonnes grading 2.66
g/t). Exploration activities in 2024 will focus on testing the
eastern extension of the Wasamac deposit in the Wasa shear zone and exploring for
Wasamac-style mineralization at Francoeur.
Hope Bay – Step-Out Drilling Continues to Extend Madrid's
High-Grade Patch 7 Zone at Depth and Laterally
At Hope Bay, exploration drilling in 2023 totalled more than
125,000 metres with work focused on the Madrid area and Doris gold deposits and
resulted in an increase in inferred mineral resources to 2.11
million ounces (12.1 million tonnes grading 5.41 g/t) as at
December 31, 2023 from 1.95 million
ounces (11.0 million tonnes grading 5.49 g/t) as at December 31, 2022. Exploration drilling added
approximately 336,000 ounces of inferred mineral resources mostly
from Madrid's Patch 7 zone, which
partially offset a reduction of 177,000 ounces of inferred mineral
resources by project-wide conversion to indicated mineral resources
and improvement of mining parameters.
At Madrid, the target area in
the gap between the Suluk and Patch 7 zones delivered strong drill
results with recent highlights of 16.3 g/t gold over 28.6 metres at
385 metres depth and 12.7 g/t gold over 4.6 metres at 677 metres
depth. Results confirm the potential to expand gold mineralization
in the Madrid deposit at depth and
along strike to the south, which will be a key focus of the 2024
drilling program.
Recent exploration results are expected to support a larger
production scenario at Hope Bay. The Company continues to advance
the internal evaluation and anticipates reporting results from this
internal evaluation in 2025.
San Nicolás Copper Project
In the fourth quarter of 2023, Minas de San Nicolás, which is
jointly owned by the Company and Teck Resources Limited, continued
to advance the San Nicolás project in Zacatecas State, Mexico, including with respect to stakeholder
engagement on the permitting process. The partners also continued
to advance the feasibility study, with the intention to initiate
detailed engineering and further optimization work later in 2024,
and plan to be complete in 2025. Project approval would be expected
to follow, subject to receipt of permits and the results of the
feasibility study. In January 2024,
Minas de San Nicolás submitted its application for an Environmental
Impact Assessment permit, which is an important milestone in
advancing the development of the San Nicolás project.
2024 to 2026 Guidance Estimates Stable Gold
Production; Unit Costs for 2024 Remain Industry Leading
The Company is announcing its detailed production and cost
guidance for 2024 and mine by mine production forecasts for 2024
through 2026. The 2024 gold production guidance range remains
unchanged from the Previous Guidance, while 2024 total cash costs
per ounce and AISC per ounce guidance increased approximately 4%
compared to the full year 2023 results, below the rate of
inflation. The 2024 production and cost guidance is summarized
below and a detailed description of the three-year guidance plan is
set below.
2024 Guidance
Summary
|
|
|
|
|
(In millions other
than per ounce measures or as otherwise stated)
|
|
|
|
2024
|
|
2024
|
|
Range
|
|
Mid-Point
|
Gold Production
(ounces)
|
3,350,000
|
3,550,000
|
|
3,450,000
|
Total cash costs per
ounce12
|
$875
|
$925
|
|
$900
|
AISC per
ounce12
|
$1,200
|
$1,250
|
|
$1,225
|
|
|
|
|
|
Exploration and
corporate development
|
$220
|
$240
|
|
$230
|
Depreciation and
amortization expense
|
$1,560
|
$1,610
|
|
$1,585
|
General &
administrative expense
|
$175
|
$195
|
|
$185
|
Other costs
|
$75
|
$ 90
|
|
$83
|
|
|
|
|
|
Tax rate (%)
|
33 %
|
38 %
|
|
35 %
|
Cash taxes
|
$400
|
$500
|
|
$450
|
|
|
|
|
|
Capital expenditures
(excluding capitalized exploration)
|
$1,600
|
$1,700
|
|
$1,650
|
Capitalized
exploration
|
$105
|
$115
|
|
$110
|
_______________________________
12 The
Company's guidance for total cash costs per ounce and AISC per
ounce is forward looking non-GAAP information. For a description of
the composition and usefulness of this non-GAAP measure, see "Note
Regarding Certain Measures of Performance" below.
Updated Three-Year Guidance Plan
Mine by mine production and cost guidance for 2024 and mine by
mine gold production forecasts for 2025 and 2026 are set out in the
table below. Opportunities to further optimize and improve gold
production and unit cost forecasts from 2024 through 2026 continue
to be evaluated.
Estimated Payable
Gold Production (ounces)
|
|
2023
|
|
2024
|
|
2025
|
|
2026
|
|
Actual
|
|
Forecast
Range
|
|
Forecast
Range
|
|
Forecast
Range
|
LaRonde
complex
|
306,648
|
|
285,000
|
305,000
|
|
300,000
|
320,000
|
|
330,000
|
350,000
|
Canadian Malartic
complex*
|
603,955
|
|
615,000
|
645,000
|
|
600,000
|
630,000
|
|
545,000
|
575,000
|
Goldex
|
140,983
|
|
125,000
|
135,000
|
|
125,000
|
135,000
|
|
125,000
|
135,000
|
Detour Lake
|
677,446
|
|
675,000
|
705,000
|
|
710,000
|
740,000
|
|
745,000
|
775,000
|
Macassa
|
228,535
|
|
265,000
|
285,000
|
|
320,000
|
340,000
|
|
330,000
|
350,000
|
Abitibi Gold
Belt
|
1,957,567
|
|
1,965,000
|
2,075,000
|
|
2,055,000
|
2,165,000
|
|
2,075,000
|
2,185,000
|
Meliadine
|
364,141
|
|
360,000
|
380,000
|
|
375,000
|
395,000
|
|
400,000
|
420,000
|
Meadowbank
complex
|
431,666
|
|
480,000
|
500,000
|
|
485,000
|
505,000
|
|
440,000
|
460,000
|
Nunavut
|
795,807
|
|
840,000
|
880,000
|
|
860,000
|
900,000
|
|
840,000
|
880,000
|
Fosterville
|
277,694
|
|
200,000
|
220,000
|
|
140,000
|
160,000
|
|
140,000
|
160,000
|
Kittila
|
234,402
|
|
220,000
|
240,000
|
|
220,000
|
240,000
|
|
230,000
|
250,000
|
Pinos Altos
|
98,280
|
|
100,000
|
105,000
|
|
125,000
|
135,000
|
|
115,000
|
125,000
|
La India
|
75,904
|
|
25,000
|
30,000
|
|
—
|
—
|
|
—
|
—
|
Total Gold
Production
|
3,439,654
|
|
3,350,000
|
3,550,000
|
|
3,400,000
|
3,600,000
|
|
3,400,000
|
3,600,000
|
*2023 actual production
reflects the Company's 50% interest in the Canadian Malartic
complex up to and including March 30, 2023 and 100% interest
thereafter.
|
Gold production for 2024 is forecast to be approximately
3.35 to 3.55 million ounces, unchanged from the Previous Guidance.
Additional production from operating improvements at
the LaRonde and Meadowbank complexes and the Kittila mine
(operating at 2 Mtpa) are expected to be offset by revisions to the
mine plans at Canadian Malartic, due to the deferral of the restart
of pre-crushing low grade ore, and at
Fosterville, due to lower gold grades in the
remaining area of the Swan zone.
Gold production is forecast to remain stable through 2026 based
on mid-point estimates when compared to 2023 gold production of
3.44 million ounces. Gold production is forecast to be
approximately 3.40 to 3.60 million ounces of gold in in 2025 and
2026.
Total cash costs per
ounce on a by-product basis of gold produced ($ per
ounce)
|
|
Production Costs
per Ounce
|
|
Total Cash Costs per
Ounce on a By-
Product Basis of Gold Poduced
|
|
2023
|
|
2023
|
|
2024*
|
|
Actual
|
|
Actual
|
|
Forecast
|
LaRonde
complex
|
$
977
|
|
$
911
|
|
$
931
|
Canadian Malartic
complex
|
771
|
|
824
|
|
926
|
Goldex
|
795
|
|
820
|
|
871
|
Detour Lake
|
669
|
|
735
|
|
734
|
Macassa
|
678
|
|
731
|
|
856
|
Abitibi Gold
Belt
|
759
|
|
795
|
|
848
|
Meliadine
|
944
|
|
980
|
|
960
|
Meadowbank
complex
|
1,214
|
|
1,176
|
|
1,029
|
Nunavut
|
1,090
|
|
1,086
|
|
999
|
Fosterville
|
473
|
|
488
|
|
698
|
Kittila
|
878
|
|
871
|
|
954
|
Pinos Altos
|
1,495
|
|
1,229
|
|
1,268
|
La India
|
1,271
|
|
1,241
|
|
1,365
|
Weighted Average
Total
|
$
853
|
|
$
865
|
|
$
900
|
*Forecast total cash
costs per ounce are based on the mid-point of 2024 production
guidance as set out in the table above.
|
Total cash costs per ounce in 2024 are expected to be between
$875 and $925. The higher costs, when compared to the full
year 2023 total cash costs per ounce of $865, are largely a result of higher labour,
spare parts and maintenance costs. The Company expects stable unit
costs through 2026, excluding inflation.
AISC per ounce in 2024 are expected to be between $1,200 and $1,250.
The higher costs, when compared to the full year 2023 AISC per
ounce of $1,179, are largely a result
of higher total cash costs per ounce and higher sustaining capital
expenditures. AISC per ounce are expected to remain stable through
2026, excluding inflation.
The Company remains focused on reducing costs through
productivity improvements and innovation initiatives at all of its
operations and the realization of operational synergies not
currently factored into the cost guidance.
Currency and commodity price assumptions used for 2024 cost
estimates and sensitivities are set out in the table below:
Currency and
commodity price assumptions used for 2024 cost estimates and
sensitivities
|
|
|
|
|
|
|
|
Commodity and
currency price
assumptions
|
|
Approximate impact
on total cash costs per
ounce basis*
|
|
|
|
|
|
|
|
C$/US$
|
|
1.34
|
|
10% change in
C$/US$
|
|
$
50
|
US$/EUR
|
|
1.10
|
|
10% change in
US$/EUR
|
|
$
5
|
MXP/US$
|
|
16.50
|
|
10% change in
MXP/US$
|
|
$
1
|
A$/US$
|
|
1.45
|
|
10% change in
A$/US$
|
|
$
3
|
Diesel
($/ltr)
|
|
$ 0.80
|
|
10% change in diesel
price
|
|
$
8
|
Silver
($/oz)
|
|
$
23.00
|
|
10% change in
silver price
|
|
$
2
|
Copper
($/lb)
|
|
$ 3.80
|
|
10% change in copper
price
|
|
$
1
|
Zinc ($/lb)
|
|
$ 1.10
|
|
10% change in zinc
price
|
|
$
<1
|
*Excludes the impact of
current hedging positions
|
Exploration and Corporate Development
Exploration and corporate development expenses in 2024 are
expected to be between $220 million
and $240 million, based on a
mid-point forecast of $151.1 million for expensed exploration and
$77.7 million in project studies
and other expenses.
Depreciation Guidance
Depreciation and amortization expense in 2024 is expected
to be between $1.56 and $1.61 billion.
General & Administrative Cost Guidance
General and administrative expenses in 2024 are expected to
be between $135 and $145 million, excluding share-based compensation.
Share based compensation expense in 2024 is expected to be between
$40 and $50
million.
Other Cost Guidance
Additional other expenses in 2024 are expected to be
approximately $75 to $90 million. This includes $60 to $65 million
related to site maintenance costs primarily at Hope Bay and
Northern Territory in Australia,
$5 to $10
million related to the ore sorting project at Detour Lake
and $10 to $15
million related to sustainable development activities.
Tax Guidance
For 2024, the Company expects its effective tax rates to be:
- Canada – 35% to 40%
- Mexico – 35% to 40%
- Australia – 30%
- Finland – 20%
The Company's overall effective tax rate is expected to be
approximately 33% to 38% for the full year 2024.
The Company estimates potential consolidated cash taxes of
approximately $400 million to
$500 million in 2024 at prevailing
gold prices. The expected cash taxes for 2024 have increased from
prior years as the Company has utilized the majority of its
Canadian corporate tax pools that are deductible at a rate of 100%
as of year-end 2023.
Capital Expenditures Guidance
In 2024, estimated capital expenditures are expected to be
between $1.6 billion and $1.7 billion and capitalized exploration
expenditures are expected to be between $105
million and $115 million.
The estimated mid-point for capital expenditures (excluding
capitalized exploration) for 2024 is approximately $1.65 billion, which includes approximately
$916.0 million of sustaining capital
expenditures at the Company's operating mines and approximately
$737.0 million of development capital
expenditures.
The Company's capital expenditure forecast for 2024 is higher
than the full year 2023 capital expenditures of $1.48 billion (which included $790.5 million of sustaining capital expenditures
and $684.6 million of development
capital expenditures) and capitalized exploration of $125.8 million. The increase in capital
expenditures when compared to 2023 is largely due to the increase
in ownership of Canadian Malartic to 100% as of the second quarter
of 2023 and increased capital expenditures at Detour Lake,
primarily due to additional maintenance and mobile equipment
purchases and mine infrastructure costs and inflation. While the
2024 capital expenditures includes the advancement of studies and
preliminary work for regional pipeline projects, additional
spending at these projects will depend on the approval and timing
of these projects.
Estimated 2024
Capital Expenditures
|
|
|
|
|
|
(In thousands of US
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
|
Capitalized
Exploration
|
|
|
|
Sustaining
Capital
|
Development
Capital
|
|
Sustaining
|
Non-
Sustaining
|
|
Total
|
|
|
|
|
|
|
|
|
LaRonde
complex
|
$
86,100
|
$
68,200
|
|
$
2,300
|
$
—
|
|
$
156,600
|
Canadian Malartic
complex
|
135,900
|
167,500
|
|
—
|
7,100
|
|
310,500
|
Goldex mine
|
52,800
|
7,700
|
|
2,900
|
—
|
|
63,400
|
Detour Lake
mine
|
274,800
|
201,100
|
|
—
|
20,300
|
|
496,200
|
Macassa mine
|
59,400
|
97,800
|
|
2,100
|
32,900
|
|
192,200
|
Abitibi Gold
Belt
|
609,000
|
542,300
|
|
7,300
|
60,300
|
|
1,218,900
|
Meliadine
mine
|
70,200
|
82,400
|
|
5,500
|
13,200
|
|
171,300
|
Meadowbank
complex
|
94,000
|
—
|
|
—
|
—
|
|
94,000
|
Nunavut
|
164,200
|
82,400
|
|
5,500
|
13,200
|
|
265,300
|
Fosterville
mine
|
35,800
|
41,100
|
|
—
|
11,000
|
|
87,900
|
Kittila mine
|
87,200
|
2,900
|
|
1,900
|
5,400
|
|
97,400
|
Pinos Altos
mine
|
19,800
|
15,400
|
|
1,800
|
500
|
|
37,500
|
San Nicolas
project
|
—
|
17,000
|
|
—
|
—
|
|
17,000
|
Other
|
—
|
35,900
|
|
—
|
1,700
|
|
37,600
|
Total Capital
Expenditures
|
$
916,000
|
$
737,000
|
|
$
16,500
|
$
92,100
|
|
$
1,761,600
|
The Company is working towards maintaining capital expenditures
at similar levels (excluding inflation) through 2026.
Updated Three Year Operational Guidance Plan
Since the Previous Guidance, there have been several operating
developments resulting in changes to the updated three-year
production profile. Descriptions of these changes as well as
initial 2026 guidance are set out below.
ABITIBI REGION, QUEBEC
LaRonde Complex
Forecast
|
2023
|
2024
|
2025
|
2026
|
|
Previous Guidance
(mid-point) (oz)
|
275,000
|
280,000
|
310,000
|
n.a.
|
|
Current Guidance
(mid-point) (oz)
|
306,648
(actual)
|
295,000
|
310,000
|
340,000
|
|
|
|
|
|
|
|
LaRonde Complex
Forecast 2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Silver
(g/t)
|
Silver
Mill
Recovery
(%)
|
|
2,686
|
3.62
|
94.4 %
|
10.01
|
72.6 %
|
|
Production
and
Minesite
Costs per Tonne13
|
Zinc
(%)
|
Zinc
Mill
Recovery
(%)
|
Copper
(%)
|
Copper
Mill
Recovery
(%)
|
|
C$154.20
|
0.46 %
|
71.0 %
|
0.12 %
|
83.1 %
|
At the LaRonde complex, the production forecast is higher in
2024 when compared to Previous Guidance primarily due to higher
productivity achieved than initially anticipated during the
transition to pillarless mining at the LaRonde mine. Gold
production is expected to increase to 310,000 ounces in 2025 and
reach an annual run-rate of approximately 340,000 ounces per year
in 2026, primarily due to higher gold grades at the LaRonde mine,
an increase in the mining rate at the LZ5 mine to 3,800 tpd and the
addition of satellite zones. The Company is also evaluating the
potential to bring new sources of ore into production, including
the LZ5 deep, Ellison and Fringe zones.
The LZ5 processing facility is expected to be in care and
maintenance until the second half of 2024 as the Company completes
an upgrade to the CIL tanks. The Company expects to restart the LZ5
processing facility in the second half of 2024 to process ore from
the LZ5 mine and the AK deposit at Macassa. The Company continues
to assess options to leverage the excess mill capacity at LZ5 as
set out in the Update on Key Value Drivers and Pipeline Projects
section above.
The LaRonde mine has planned a shutdown of 14 days in the third
quarter of 2024 in order to rebuild the loading station at level
206 of the Penna shaft.
Canadian Malartic
Complex Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
585,000
|
660,000
|
610,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
603,955
(actual)
|
630,000
|
615,000
|
560,000
|
|
|
|
|
|
Canadian Malartic
Complex
Forecast 2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
18,952
|
1.13
|
91.5 %
|
C$41.80
|
___________________________
|
13
Minesite costs per tonne is a non-GAAP measure that is not
standardized under IFRS. For a description of the composition and
usefulness of this non-GAAP measure and a reconciliation to
production costs see "Reconciliation of Non-GAAP Performance
Measures" and "Note Regarding Certain Measures of Performance",
respectively, below.
|
At the Canadian Malartic complex, the production forecast is
lower in 2024 when compared to Previous Guidance primarily due to
the Company's decision to defer the reintroduction of pre-crushing
low grade ore to increase mill throughput to 2025 from 2024. The
Company continues to optimize the ore processing plan to enhance
the financial metrics and cash flow during the transition to the
underground Odyssey project. The mill throughput is now forecast to
remain at approximately 52,000 tpd in 2024.
In 2024, production is expected to be sourced from the Barnat
pit and the Odyssey mine, complemented by ore from the low grade
stockpiles. The Odyssey mine is expected to contribute
approximately 80,000 ounces of payable gold to the Canadian
Malartic complex in 2024, 2025 and 2026.
Goldex
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
135,000
|
130,000
|
125,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
140,983
(actual)
|
130,000
|
130,000
|
130,000
|
|
|
|
|
|
Goldex Forecast
2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
|
|
3,016
|
1.58
|
84.9 %
|
|
|
Production
and Minesite
Costs per Tonne
|
Copper
(%)
|
Copper Mill
Recovery (%)
|
|
|
C$57.70
|
0.09 %
|
87.5 %
|
|
At Goldex, the production forecast is in line with Previous
Guidance. The development at the Akasaba West project is on
schedule and on budget to achieve commercial production in early
2024. Akasaba West is expected to provide additional production
flexibility to Goldex and is forecast to contribute approximately
12,000 ounces of gold and approximately 2,300 tonnes of copper per
year to Goldex starting in 2024.
ABITIBI REGION, ONTARIO
Detour Lake
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
690,000
|
700,000
|
740,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
677,446
(actual)
|
690,000
|
725,000
|
760,000
|
|
|
|
|
|
Detour Lake Forecast
2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
27,474
|
0.85
|
91.9 %
|
C$24.70
|
At Detour Lake, the slightly lower production forecast when
compared to Previous Guidance is primarily due to lower grades from
a slight adjustment to the mining sequence. The production profile
reflects expected steady progress on the mill optimization
projects, with the mill throughput rate expected to reach and
sustain 77,000 tpd (equivalent to an annualized rate of
approximately 28 Mtpa) in the second half of 2024, and a higher
grade profile in 2025 and 2026.
Macassa
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
215,000
|
265,000
|
305,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
228,535
(actual)
|
275,000
|
330,000
|
340,000
|
|
|
|
|
|
Macassa Forecast
2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
606
|
14.50
|
97.4 %
|
C$521.10
|
At Macassa, the production forecast is higher in 2024 and 2025
when compared to Previous Guidance primarily due to the addition of
production from the AK deposit to the mining profile. With
sustained productivity gains at Macassa over the recent quarters,
the deep mine (including the South Mine complex and Main Break) is
now expected to largely fill the mill at its nominal capacity of
1,650 tpd starting in the second half of 2024. Production from the
NSUR and AK deposits is planned to be trucked and processed at the
LZ5 processing facility. Production from the NSUR and AK deposits
is forecast to be approximately 19,000 ounces of gold in 2024 and
between 35,000 ounces to 50,000 ounces of gold in 2025 and 2026.
The lower forecast gold grade is largely a result of the inclusion
of lower grade AK ore, additional lower grade NSUR ore and
continued adjustments to the resource model from additional
definition drilling.
The Company continues to see geological potential at Macassa as
demonstrated by the mineral reserves replacement of 171% of its
mining depletion in 2023 and encouraging drill results. In
addition, the mineralized structures along strike and at depth of
the South Mine complex and Main Break are prospective for ongoing
expansion of the mineral resource base at the site. Overall, the
Company believes that the Macassa mine has the potential to
maintain production in excess of 300,000 ounces of gold per year
based on expected exploration results.
NUNAVUT
Meliadine
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
365,000
|
370,000
|
380,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
364,141
(actual)
|
370,000
|
385,000
|
410,000
|
|
|
|
|
|
Meliadine Forecast
2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
1,892
|
6.30
|
96.5 %
|
C$251.50
|
At Meliadine, the production forecast in 2024 is in line with
Previous Guidance. The Meliadine Phase 2 expansion is progressing
as planned and mill throughput is expected to increase to 6,000 tpd
late in 2024 and to 6,250 tpd in 2026, driving the higher gold
production forecast in 2025 and 2026.
Meadowbank Complex
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
420,000
|
480,000
|
495,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
431,666
(actual)
|
490,000
|
495,000
|
450,000
|
|
|
|
|
|
Meadowbank Complex
Forecast 2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
4,026
|
4.13
|
91.7 %
|
C$167.80
|
At the Meadowbank complex, the production forecast is higher in
2024 when compared to Previous Guidance primarily due to improved
grades from positive grade reconciliation. The Company has approved
an extension to the Amaruq life of mine to 2028 (compared to 2026
previously), which includes additional stopes from underground, a
push-back from the IVR open pit and additional ounces from positive
grade reconciliation. Overall approximately 500,000 ounces of gold
have been added to the production profile, including approximately
100,000 ounces of gold in 2026. Amaruq underground is forecast to
contribute approximately 100,000 ounces of gold in 2024, 2025 and
2026.
In 2023, Meadowbank experienced its longest lasting caribou
migration since operations began. The Company continues to adjust
for the caribou migration in its production plan as this migration
can affect the ability to move materials on the road between Amaruq
and Meadowbank and between Meadowbank and Baker Lake. Wildlife management is an
important priority and the Company is working with Nunavut stakeholders to optimize solutions to
safeguard wildlife and minimize production disruptions.
AUSTRALIA
Fosterville
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
305,000
|
240,000
|
210,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
277,694
(actual)
|
210,000
|
150,000
|
150,000
|
|
|
|
|
|
Fosterville Forecast
2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
744
|
9.15
|
95.9 %
|
A$285.60
|
At Fosterville, the production
forecast is lower in 2024 and 2025 when compared to Previous
Guidance. The declining production profile reflects negative grade
reconciliation in the remaining area of the high grade Swan zone
and the substantial depletion of the zone by late 2024. With the
completion of the primary ventilation upgrade planned for late 2024
and the commencement of operations in Robbins Hill, the mining rate
is forecast to increase by approximately 10% in 2025 and 2026,
partially offsetting the lower average gold grade of approximately
6.50 g/t. Work is ongoing to evaluate the potential to optimize
mining and milling through improved productivity to ensure
Fosterville remains a sustainable
175,000 ounces to 200,000 ounces producer annually. Preliminary
results of this evaluation are expected in the second half of
2024.
In 2023, the Fosterville mine
successfully replaced 102% of mining depletion through continued
exploration success in the Robbins Hill and Lower Phoenix areas and
improved mining parameters. The Company believes that these areas
remain prospective for high-grade, sulphide-hosted gold
mineralization as well as ultra-high grade, quartz-hosted gold
zones similar to the Swan zone.
FINLAND
Kittila
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
200,000
|
210,000
|
210,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
234,402
(actual)
|
230,000
|
230,000
|
240,000
|
|
|
|
|
|
Kittila Forecast
2024
|
Ore
Milled
('000
tonnes)
|
Gold
(g/t)
|
Gold
Mill
Recovery
(%)
|
Production
and Minesite
Costs per Tonne
|
|
2,000
|
4.15
|
86.3 %
|
€ 95.90
|
At Kittila, the production forecast is higher in 2024 and 2025
when compared to Previous Guidance primarily due to the
reinstatement of the 2.0 Mtpa operating permit on October 27, 2023. Previous Guidance assumed a
throughput rate of 1.6 Mtpa in 2024 and 2025.
The mine is expecting a planned shutdown in the first quarter of
2024 for 11 days for regular maintenance on the autoclave.
MEXICO
Pinos Altos
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
85,000
|
97,500
|
115,000
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
97,642
(actual)
|
102,500
|
130,000
|
120,000
|
|
|
|
|
|
Pinos Altos Forecast
2024
|
Total
Ore
('000
tonnes)
|
Gold
(g/t)
|
Gold
Recovery
(%)
|
|
|
1,810
|
1.86
|
94.7 %
|
|
|
Production
and Minesite
Costs per Tonne
|
Silver
(g/t)
|
Silver
Mill
Recovery
(%)
|
|
|
$88.17
|
47.25
|
46.9 %
|
|
At Pinos Altos, the production
forecast is in line in 2024 and higher in 2025 than the Previous
Guidance. The increased production in 2025 reflects increased
contribution from the Cubiro satellite deposit, which is expected
to start producing in the second half of 2024.
La India
Forecast
|
2023
|
2024
|
2025
|
2026
|
Previous Guidance
(mid-point) (oz)
|
65,000
|
17,500
|
n.a.
|
n.a.
|
Current Guidance
(mid-point) (oz)
|
75,904
(actual)
|
27,500
|
nil
|
nil
|
At La India, the production forecast in 2024 is higher than the
Previous Guidance primarily due to higher gold inventory ounces in
the heap leach. With the depletion of the open pits in the fourth
quarter of 2023, gold production in 2024 is expected to come from
the residual leaching of the heap leach pads.
2024 Exploration Program and Budget – Continued Focus on
Exploration Programs at Detour Lake and Canadian Malartic which are
Expected to be Significant Future Contributors to Mineral Reserve
Growth; Large Exploration Programs at LaRonde complex, Macassa,
Meliadine, Amaruq, Fosterville,
Kittila and Hope Bay
The Company has budgeted $336.7
million for exploration expenditures and project expenses in
2024, comprised of $151.1 million for
expensed exploration, $107.9 million
for capitalized exploration and $77.7
million for project studies, technical services and other
corporate expenses.
The Company's exploration focus remains on extending mine life
at existing operations, testing near-mine opportunities and
advancing key value driver projects. Exploration priorities for
2024 include drilling the western and deep extension of the Detour
Lake deposit to assist in the optimization of the open pit
operations and to further advance a potential underground mining
scenario, growing the underground mineral reserve and mineral
resource at the Odyssey mine and continuing large exploration
programs at other operating assets and Hope Bay.
The Company's exploration and corporate development budget and
plans for individual mines and projects for 2024 are presented in
the Company's exploration news release dated February 15, 2024.
ABITIBI REGION, QUEBEC
LaRonde Complex – Transition to Pillarless Mining Yields
Higher Productivity than Anticipated
LaRonde Complex –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
663
|
658
|
|
2,658
|
2,816
|
Tonnes of ore milled
per day
|
|
7,207
|
7,152
|
|
7,282
|
7,715
|
Gold grade
(g/t)
|
|
4.33
|
4.00
|
|
3.83
|
4.17
|
Gold production
(ounces)
|
|
85,765
|
80,169
|
|
306,648
|
356,337
|
Production costs per
tonne (C$)
|
|
$
137
|
$
143
|
|
$
152
|
$
132
|
Minesite costs per
tonne (C$)
|
|
$
157
|
$
144
|
|
$
153
|
$
129
|
Production costs per
ounce of gold produced
|
|
$
779
|
$
871
|
|
$
977
|
$
801
|
Total cash costs per
ounce of gold produced
|
|
$
845
|
$
832
|
|
$
911
|
$
703
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher
grades
- Full Year 2023 – Gold production decreased when compared to the
prior-year period due to lower grades and lower volumes processed
related to changes in the mining sequence at the LaRonde mine
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period primarily due to the timing
of inventory sales and higher volume of ore milled, partially
offset by higher underground maintenance costs. Production costs
per ounce decreased when compared to the prior-year period
primarily due to higher gold grades and the weaker Canadian dollar
relative to the U.S. dollar
- Full Year 2023 – Production costs per tonne increased when
compared to the prior-year period primarily due to higher
underground mining costs attributable to higher labour and
materials costs and higher milling costs resulting from the
transition to dry tailings disposition at the LaRonde mine and a
lower volume of ore milled. Production costs per ounce increased
when compared to the prior-year period primarily as a result of
higher production costs per tonne and fewer ounces of gold
produced, partially offset by the weaker Canadian dollar relative
to the U.S. dollar
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the reasons
outlined above regarding the increase in production costs in the
quarter. Total cash costs per ounce increased when compared to the
prior-year period primarily for the same reasons as the increase in
minesite costs per tonne
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior-year period primarily due to the reasons
outlined above for production costs per tonne. Total cash costs per
ounce increased when compared to the prior-year period primarily
due to the reasons outlined above for production costs per
ounce
Highlights
- Production from the 11-3 Zone at LaRonde continued in the
fourth quarter of 2023 at a mining rate of approximately 950 tpd,
exceeding the planned mining rate for the quarter. The 11-3 Zone is
expected to continue to add additional flexibility to the LaRonde
mine production plan
- Maintenance of the underground ore handling system continued in
the fourth quarter of 2023. The LaRonde mine had partial, planned
shutdowns (equivalent in aggregate to approximately a 10-day
shutdown) during the fourth quarter of 2023 to update the main
underground ore network
- During the fourth quarter of 2023, ore from LZ5 was processed
at the LaRonde mill to take advantage of its excess capacity. The
LZ5 processing facility was placed on care and maintenance during
the third quarter of 2023 and is expected to restart in the second
half of 2024. During the downtime, the Company will overhaul the
facility's leach tanks
Canadian Malartic Complex –
Record Quarterly Safety Performance and Solid Quarterly Gold
Production; Odyssey Underground Production Reaches Target Rate of
3,500 tpd
Canadian Malartic
Complex – Operating Statistics*
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
5,278
|
4,950
|
|
19,595
|
19,540
|
Tonnes of ore milled
per day
|
|
57,370
|
53,804
|
|
53,685
|
53,534
|
Gold grade
(g/t)
|
|
1.08
|
1.18
|
|
1.17
|
1.15
|
Gold production*
(ounces)
|
|
168,272
|
86,439
|
|
603,955
|
329,396
|
Production costs per
tonne (C$)
|
|
$
36
|
$
34
|
|
$
36
|
$
31
|
Minesite costs per
tonne (C$)
|
|
$
40
|
$
37
|
|
$
39
|
$
35
|
Production costs per
ounce of gold produced
|
|
$
825
|
$
739
|
|
$
771
|
$
716
|
Total cash costs per
ounce of gold produced
|
|
$
913
|
$
789
|
|
$
824
|
$
787
|
* Gold production
reflects Agnico Eagle's 50% interest in the Canadian Malartic
complex up to and including March 30, 2023 and 100%
thereafter.
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period due to the increase in the
Company's ownership percentage of the Canadian Malartic complex
between periods from 50% to 100% as a result of the closing of the
Yamana Transaction on March 30, 2023,
higher throughput resulting from softer rock conditions at the
Barnat pit and the contribution from Odyssey South, partially
offset by lower grades
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to the increase in the Company's
ownership percentage of the Canadian Malartic complex between
periods from 50% to 100% as a result of the Yamana Transaction
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to higher
mining and milling costs in the period, partially offset by a
higher volume of ore milled. Production costs per ounce increased
when compared to the prior-year period due to lower gold grades in
the current period and higher mining and milling costs
- Full Year 2023 – Production costs per tonne increased when
compared to the prior-year period primarily due to the recognition
of fair value adjustments to inventory resulting from the Yamana
Transaction. Production costs per ounce increased when compared to
the prior-year period due to fewer ounces of gold being produced in
the current period and the recognition of fair value adjustments to
inventory resulting from the Yamana Transaction
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period due to higher production
costs, partially offset by the higher volume of ore tonnes milled
during the quarter. 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, partially offset by the
weaker Canadian dollar relative to the U.S. dollar
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior-year period primarily due to higher open pit
mining costs. Total cash costs per ounce increased when compared to
the prior-year period primarily due to higher minesite costs per
tonne, partially offset by the weaker Canadian dollar relative to
the U.S. dollar
Highlights
- At the Barnat pit, good equipment availability and productivity
and softer ultramafic ore drove solid operational performance. At
Odyssey South, production via ramp reached and sustained the design
rate of 3,500 tpd in the quarter. Gold production from underground
was approximately 20,000 ounces in the fourth quarter of 2023
- Mill throughput continued to be above plan from increased
contribution from Odyssey South and softer rock conditions
- At the Canadian Malartic pit, the Company continued the
construction of the central berm (approximately 60% complete) in
preparation for in-pit tailings disposal, which is expected to
start in mid-2024
- An update on Odyssey project development, construction and
exploration highlights is set out in the Update on Key Value
Drivers and Pipeline Projects section above
Goldex – Record Annual Safety Performance; First Ore
Processed from Akasaba West Project
Goldex Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
672
|
748
|
|
2,887
|
2,940
|
Tonnes of ore milled
per day
|
|
7,304
|
8,130
|
|
7,910
|
8,055
|
Gold grade
(g/t)
|
|
1.79
|
1.70
|
|
1.74
|
1.68
|
Gold production
(ounces)
|
|
33,364
|
36,291
|
|
140,983
|
141,502
|
Production costs per
tonne (C$)
|
|
$
55
|
$
45
|
|
$
52
|
$
46
|
Minesite costs per
tonne (C$)
|
|
$
58
|
$
46
|
|
$
53
|
$
47
|
Production costs per
ounce of gold produced
|
|
$
816
|
$
683
|
|
$
795
|
$
734
|
Total cash costs per
ounce of gold produced
|
|
$
877
|
$
765
|
|
$
820
|
$
765
|
Gold Production
- Fourth Quarter of 2023 – Gold production decreased when
compared to the prior-year period primarily due to a lower volume
of ore processed, partially offset by higher gold grades
- Full Year 2023 – Gold production decreased when compared to the
prior-year period primarily due to a lower volume of ore processed,
partially offset by higher gold grades
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to higher open pit
production costs and lower volume of ore milled in the current
period. Production costs per ounce increased when compared to the
prior-year period due to higher open pit production costs and fewer
ounces of gold being produced, partially offset by the weaker
Canadian dollar relative to the U.S. dollar
- Full Year 2023 – Production costs per tonne increased when
compared to the prior-year period due to higher open pit mining
costs, higher underground maintenance costs and lower volume
processed in the current period. Production costs per ounce
increased when compared to the prior-year period due to higher
production costs and fewer ounces of gold being produced, partially
offset by the weaker Canadian dollar relative to the U.S.
dollar
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period due to the same reasons as
the higher production costs per tonne. Total cash costs per ounce
increased when compared to the prior-year period due to higher
minesite costs per tonne, partially offset by the weaker Canadian
dollar relative to the U.S. dollar
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior-year period primarily 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 primarily due to higher minesite costs per tonne, partially
offset by the weaker Canadian dollar relative to the U.S.
dollar
Highlights
- Goldex achieved record safety performance in 2023 with zero
lost time accidents and restricted work during the fourth quarter
and for the full year
- While the mine had lower throughput during the fourth quarter
of 2023, Goldex had solid operational performance throughout the
year with record annual tonnes hoisted (2.9 million tonnes)
- South Zone Sector 3 completed six stopes in 2023, ahead of
schedule, and produced approximately 11,000 ounces of gold. South
Zone Sector 3 is expected to provide additional flexibility for the
mining operations
- The Akasaba West project remains on schedule and budget with
work on upgrading the mill completed in the fourth quarter of 2023.
First ore from the project was processed in November 2023 and achievement of commercial
production is on schedule to occur in the first quarter of
2024
ABITIBI REGION, ONTARIO
Detour Lake – Higher Grades Drive Strong Quarterly
Production; Advancing Mill Optimization Initiatives to Achieve
76,700 tpd Rate in 2024
Detour Lake Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
6,608
|
6,488
|
|
25,435
|
22,782
|
Tonnes of ore milled
per day
|
|
71,826
|
70,522
|
|
69,685
|
69,670
|
Gold grade
(g/t)
|
|
1.02
|
0.94
|
|
0.91
|
0.97
|
Gold production
(ounces)
|
|
193,475
|
179,737
|
|
677,446
|
651,182
|
Production costs per
tonne (C$)
|
|
$
25
|
$
25
|
|
$
24
|
$
28
|
Minesite costs per
tonne (C$)
|
|
$
27
|
$
25
|
|
$
26
|
$
25
|
Production costs per
ounce of gold produced
|
|
$
622
|
$
660
|
|
$
669
|
$
752
|
Total cash costs per
ounce of gold produced
|
|
$
691
|
$
674
|
|
$
735
|
$
657
|
*For the Full Year
Ended December 31, 2022, the operating statistics are reported for
the period from February 8, 2022 (the date of the Merger) to
December 31, 2022.
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to a higher volume
of ore processed resulting from the ongoing mill optimization
initiatives and higher gold grades as per the mining sequence
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to the timing of the closing of the
Merger, partially offset by the impact of the transformer failure
that occurred during the third quarter of 2023 and lower gold
grades
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne remained
unchanged when compared to the prior-year period despite the higher
throughput volumes. Production costs per ounce decreased when
compared to the prior-year period due to higher gold grades and the
weaker Canadian dollar relative to the U.S. dollar
- Full Year 2023 – Production costs per tonne decreased when
compared to the prior-year period due to a higher volume of ore
milled in the current period and the fair value adjustments to
inventory made in the 2022 period, partially offset by the impact
of the transformer failure during the third quarter of 2023.
Production costs per ounce decreased when compared to the
prior-year period due to lower production costs per tonne and the
weaker Canadian dollar relative to the U.S. dollar, partially
offset by lower gold grades
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to timing of
inventory, partially offset by the higher volume of ore processed.
Total cash costs per ounce increased when compared to the prior
year period due to the timing of inventory, partially offset by the
weaker Canadian dollar relative to the U.S. dollar
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior year period primarily due to higher
maintenance costs for mobile equipment and spare parts during the
period. Total cash cost per ounce increased when compared to the
prior year period primarily due to higher mining, maintenance and
milling costs caused by higher fuel and electricity prices and
lower gold grades, partially offset by the weaker Canadian dollar
relative to the U.S. dollar
Highlights
- In the fourth quarter of 2023, Detour Lake delivered a strong
operating performance, producing 193,475 ounces of gold as a result
of higher gold grades as per the mining sequence and its strong
mill performance with throughput of 71,826 tpd (an annualized rate
of approximately 26.2 Mtpa)
- Mill runtime, at approximately 90% in the fourth quarter of
2023, was affected by a power outage, plugged cyclone feed pump
line and an imbalance between the SAG mill and ball mill circuits.
The Company continues its efforts to monitor and resolve
higher-than-expected wear, tear and failure of equipment and
systems related to the higher throughput rate, with the objective
to better optimize and stabilize the throughput
- The expansion of the mine maintenance shops to support
increased mining rates and a larger production fleet is ongoing,
with engineering close to completion. 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. In addition, the upgrade will
improve the site readiness for future power expansion for potential
projects such as the trolley assist mine haulage system.
Approximately 70% of the engineering was completed and all lead
items had been ordered as at December 31,
2023. The upgrades related to power quality are expected to
be completed in 2024 and those related to improve site readiness
for future expansions in 2025
- In the fourth quarter of 2023, the construction of the second
cell stage four of the tailings management area was completed on
schedule and on budget
Macassa – Record Quarterly and Annual Development Metres, Ore
Tonnes Skipped and Mill Throughput; Continued Productivity Gains
Result in Lowest Minesite Costs per Tonne Since the Merger
Macassa Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
131
|
70
|
|
442
|
280
|
Tonnes of ore milled
per day
|
|
1,424
|
761
|
|
1,211
|
856
|
Gold grade
(g/t)
|
|
14.82
|
19.58
|
|
16.47
|
20.47
|
Gold production
(ounces)
|
|
60,584
|
43,308
|
|
228,535
|
180,833
|
Production costs per
tonne (C$)
|
|
$
445
|
$
594
|
|
$
475
|
$
602
|
Minesite costs per
tonne (C$)
|
|
$
473
|
$
632
|
|
$
503
|
$
577
|
Production costs per
ounce of gold produced
|
|
$
704
|
$
714
|
|
$
678
|
$
718
|
Total cash costs per
ounce of gold produced
|
|
$
763
|
$
758
|
|
$
731
|
$
683
|
*For the Full Year
Ended December 31, 2022, the operating statistics are reported for
the period from February 8, 2022 (the date of the Merger) to
December 31, 2022.
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to the higher
volume of ore processed, partially offset by lower gold grades
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to the timing of the closing of the
Merger and higher volume of ore processed, partially offset by
lower gold grades
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period due to the higher volume of
ore milled in the current period. Production costs per ounce
decreased when compared to the prior-year period due to more ounces
of gold produced in the current period, and the weaker Canadian
dollar relative to the U.S. dollar
- Full Year 2023 – Production costs per tonne decreased when
compared to the prior-year period due to the higher volume of ore
milled in the current period and the fair value adjustments to
inventory made in 2022. Production costs per ounce decreased when
compared to the prior-year period due to more ounces of gold being
produced in the current period and the weaker Canadian dollar
relative to the U.S. dollar
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne decreased
when compared to the prior-year period due to the higher volume of
ore milled, partially offset by higher mining costs resulting from
higher input prices. Total cash costs per ounce increased when
compared to the prior-year period primarily due to higher mining
costs, partially offset by the weaker Canadian dollar relative to
the U.S. dollar
- Full Year 2023 – Minesite costs per tonne decreased when
compared to the prior year period primarily due to the higher
volume of ore milled, mainly due to the timing of the closing of
the Merger. Total cash costs per ounce increased when compared to
the prior year period due to higher mining costs, partially offset
by more ounces of gold produced in the period and the weaker
Canadian dollar relative to the U.S. dollar
Highlights
- During the fourth quarter of 2023, Macassa continued to
demonstrate sustained productivity gains and improved compliance to
plan, which resulted in record quarterly and annual development
metres, tonnes skipped and mill throughput. The robust operational
performance drove the lowest minesite costs per tonne since the
Merger
- In the fourth quarter and full year of 2023, realized gold
grades were lower than forecast largely due to the addition to the
mine plan of lower grade opportunity ounces as a result of the
increased mining rate and available mill capacity
- At the Portal (ramp access to the NSUR) production from long
hole stopes continued in the fourth quarter of 2023. Gold
production from NSUR was approximately 4,800 ounces in the fourth
quarter of 2023
- The construction of the enclosure of the surface fans continued
according to schedule in the fourth quarter of 2023 and both fans
were operating at 60%. The overall ventilation system upgrade is
currently on track for completion in the first quarter of 2024,
when both fans are anticipated to reach full capacity
NUNAVUT
Meliadine Mine – Record Annual Safety Performance and Mill
Throughput
Meliadine Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
For the Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
511
|
475
|
|
1,918
|
1,757
|
Tonnes of ore milled
per day
|
|
5,554
|
5,163
|
|
5,255
|
4,814
|
Gold grade
(g/t)
|
|
6.03
|
7.00
|
|
6.11
|
6.83
|
Gold production
(ounces)
|
|
96,285
|
103,397
|
|
364,141
|
372,874
|
Production costs per
tonne (C$)
|
|
$
251
|
$
226
|
|
$
241
|
$
232
|
Minesite costs per
tonne (C$)
|
|
$
249
|
$
233
|
|
$
249
|
$
234
|
Production costs per
ounce of gold produced
|
|
$
981
|
$
786
|
|
$
944
|
$
853
|
Total cash costs per
ounce of gold produced
|
|
$
992
|
$
855
|
|
$
980
|
$
863
|
Gold Production
- Fourth Quarter of 2023 – Gold production decreased when
compared to the prior-year period primarily due to lower gold
grades, partially offset by higher volume of ore processed
- Full Year 2023 – Gold production decreased when compared to the
prior-year period primarily due to lower gold grades, partially
offset by the higher volume of ore processed
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to the consumption of
stockpiles and higher logistics costs, partially offset by the
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 reasons outlined above for production costs per tonne and
fewer ounces of gold being produced in the current period,
partially offset by the weaker Canadian dollar relative to the U.S.
dollar
- Full Year 2023 – Production costs per tonne increased when
compared to the prior-year period due to the consumption of
stockpiles, higher underground and open pit mining costs and higher
logistics costs, partially offset 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 reasons outlined
above for production costs per tonne and fewer ounces of gold
produced in the current period, partially offset by the weaker
Canadian dollar relative to the U.S. dollar
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period due to the same reasons as
the higher production cost per tonne. Total cash costs per ounce
increased when compared to the prior-year period due to the same
reasons outlined above regarding production costs per ounce and
fewer ounces of gold being produced, partially offset by the weaker
Canadian dollar relative to the U.S. dollar
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior-year period due to the same reasons as the
higher production cost per tonne. Total cash costs per ounce
increased when compared to the prior-year period due to the same
reasons outlined above regarding production costs per ounce and
fewer ounces of gold being produced, partially offset by the weaker
Canadian dollar relative to the U.S. dollar
Highlights
- The processing plant continued to demonstrate overall strong
performance, with record tonnes processed in the fourth quarter of
2023 and for the full year 2023 at 511,000 tonnes and 1.9 million
tonnes, respectively
- The open pit mine performed above plan in the fourth quarter of
2023, partially offsetting lower production from the underground
mine which was affected by rehabilitation work on the main haulage
ramp
- The Phase 2 mill expansion is expected to be completed in
mid-2024 and the processing rate ramp-up is expected to increase
throughput to 6,000 tpd by year-end 2024. In the fourth quarter of
2023, work on the Phase 2 mill expansion continued as mechanical
piping and electrical work was ongoing at the carbon in leach
building, the power plant and secondary grinding building, which is
now fully enclosed. Commissioning of the filter press began during
the fourth quarter of 2023
- The waterline installation is underway, with the section from
kilometre 15 to kilometre 30 completed. The waterline installation
is expected to be completed in 2024, allowing for utilization in
the summer of 2025
- 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. See "Environment, Social and Governance
Highlights – Meliadine Extension Permit" for further details on the
Meliadine permit application
Meadowbank Complex – Solid Operational Performance Continued;
Record Annual Safety Performance; Extension of Mine Life to 2028 with IVR Pit Pushback
Approved
Meadowbank Complex –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
938
|
923
|
|
3,843
|
3,739
|
Tonnes of ore milled
per day
|
|
10,196
|
10,033
|
|
10,529
|
10,244
|
Gold grade
(g/t)
|
|
3.97
|
3.48
|
|
3.86
|
3.40
|
Gold production
(ounces)
|
|
109,226
|
94,328
|
|
431,666
|
373,785
|
Production costs per
tonne (C$)
|
|
$
206
|
$
191
|
|
$
183
|
$
154
|
Minesite costs per
tonne (C$)
|
|
$
185
|
$
186
|
|
$
179
|
$
157
|
Production costs per
ounce of gold produced
|
|
$
1,306
|
$
1,364
|
|
$
1,214
|
$
1,184
|
Total cash costs per
ounce of gold produced
|
|
$
1,186
|
$
1,418
|
|
$
1,176
|
$
1,210
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher grades
and higher volume of ore processed
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to higher gold grades and the
volume of ore processed
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to a lower deferred
stripping adjustment at the open pit and higher milling and
underground mining costs, partially offset by the higher volume of
ore milled in the current period. Production costs per ounce
decreased when compared to the prior-year period primarily due to
more ounces of gold being produced in the current period and the
weaker Canadian dollar relative to the U.S. dollar, partially
offset by the higher production costs per tonne as outlined
above
- Full Year 2023 – Production costs per tonne increased when
compared to the prior-year period due to the consumption of
stockpiles, higher milling underground mining costs, partially
offset by a higher stripping ratio at the open pit and the 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 reasons outlined above for production costs per tonne,
partially offset by more ounces of gold being produced in the
current period and the weaker Canadian dollar relative to the U.S.
dollar
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne decreased
when compared to the prior-year period due to the same reasons as
the higher production costs per tonne. Total cash costs per ounce
decreased when compared to the prior-year period due to more ounces
of gold produced and the weaker Canadian dollar relative to the
U.S. dollar
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior-year period due to the same reasons as the
higher production costs per tonne. Total cash costs per ounce
decreased when compared to the prior-year period due to more gold
ounces produced and the weaker Canadian dollar relative to the U.S.
dollar
Highlights
- The open pit operation continued to deliver solid performance
during the fourth quarter of 2023 despite delays related to an
extended caribou migration and poor weather conditions. Production
at Amaruq also continued to benefit from positive reconciliation on
tonnes and grade
- The underground operation continued to build on productivity
gains demonstrating sustained improvement through the cycle and
increased adherence and compliance to plan. The cemented rock fill
and ore haulage set quarterly performance records
- Based on continuous improvement and cost optimization efforts,
positive reconciliation to the geological model and infill
drilling, the Company has approved an extension to the Amaruq life
of mine to 2028 (previous mine life of 2026). The extension
consists of a push-back from the IVR pit, at a stripping ratio of
7.2, and additional stopes from the underground, which, combined,
contribute approximately 500,000 of additional gold ounces to the
production profile
AUSTRALIA
Fosterville – Higher Mill
Throughput Helped Offset Lower Grades; Priority Lateral Development
for the Ventilation Upgrade Completed
Fosterville Mine –
Operating Statistics*
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
183
|
139
|
|
651
|
524
|
Tonnes of ore milled
per day
|
|
1,989
|
1,511
|
|
1,784
|
1,602
|
Gold grade
(g/t)
|
|
8.79
|
20.29
|
|
13.61
|
20.41
|
Gold production
(ounces)
|
|
49,533
|
88,634
|
|
277,694
|
338,327
|
Production costs per
tonne (A$)
|
|
$
259
|
$
370
|
|
$
304
|
$
561
|
Minesite costs per
tonne (A$)
|
|
$
261
|
$
399
|
|
$
301
|
$
356
|
Production costs per
ounce of gold produced
|
|
$
632
|
$
385
|
|
$
473
|
$
605
|
Total cash costs per
ounce of gold produced
|
|
$
723
|
$
414
|
|
$
488
|
$
378
|
*For the Full Year
Ended December 31, 2022, the operating statistics are reported for
the period from February 8, 2022 (the date of the Merger) to
December 31, 2022.
|
Gold Production
- Fourth Quarter of 2023 – Gold production decreased when
compared to the prior-year period primarily due to lower grade from
the mine sequence, partially offset by the higher volume of ore
milled
- Full Year 2023 – Gold production decreased when compared to the
prior-year period primarily due to lower grades from the mine
sequence, partially offset by the higher volume of ore milled and
the timing of the closing of the Merger
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period due to lower mining and
milling costs and the higher volume of ore milled. Production costs
per ounce increased when compared to the prior-year period due to
the lower gold grades, partially offset by the lower mining and
milling costs and the weaker Australian dollar relative to the U.S.
dollar
- Full Year 2023 – Production costs per tonne decreased when
compared to the prior-year period due to fair value adjustments to
inventory on the purchase price allocation recognized in 2022 with
no comparative recognition occurring in 2023. Production costs per
ounce decreased when compared to the prior-year period for the same
reasons above as well as the effect of the weaker Australian dollar
relative to the U.S. dollar, partially offset by fewer ounces
produced in the period due to lower gold grades
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne decreased
when compared to the prior-year period due to lower mining and
milling costs and the higher volume of ore milled in the current
period. Total cash costs per ounce increased when compared to the
prior-year period due to fewer ounces produced in the period,
partially offset by the lower minesite costs per tonne and the
weaker Australian dollar relative to the U.S. dollar
- Full Year 2023 – Minesite costs per tonne decreased when
compared to the prior year period primarily due to the higher
volume of ore milled and lower mining and milling costs. Total cash
costs per ounce increased when compared to the prior year period
primarily due to fewer ounces of gold produced in the current
period, partially offset by the lower minesite costs per tonne and
the weaker Australian dollar relative to the U.S. dollar
Highlights
- 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 fourth quarter of 2023, the Company
completed the priority development related to the ventilation
upgrade on schedule and commenced the reaming of the first
ventilation raise. The Company expects the project to be completed
by early 2025
- During the fourth quarter of 2023, the Company continued to
give priority to the key underground development in Robbins Hill
district and the Lower Phoenix exploration drive. Unplanned
maintenance on a primary fan transformer in late December affected
underground production and resulted in the delayed extraction of a
high grade stope from the Swan zone
- At the mill, throughput was solid with run of mine and coarse
ore stockpiles being drawn down at quarter end to help counter the
delay on a high grade Swan stope. As a result, head grades were
slightly lower than planned
FINLAND
Kittila – Operating Permit Restored to 2.0 Mtpa; Production
Hoist Ramp Up Completed
Kittila Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
514
|
421
|
|
1,954
|
1,925
|
Tonnes of ore milled
per day
|
|
5,587
|
4,576
|
|
5,353
|
5,274
|
Gold grade
(g/t)
|
|
4.55
|
3.93
|
|
4.48
|
4.13
|
Gold production
(ounces)
|
|
61,172
|
44,724
|
|
234,402
|
216,947
|
Production costs per
tonne (EUR)
|
|
€
91
|
€
129
|
|
€
98
|
€
103
|
Minesite costs per
tonne (EUR)
|
|
€
96
|
€
132
|
|
€
99
|
€
101
|
Production costs per
ounce of gold produced
|
|
$
828
|
$
1,258
|
|
$
878
|
$
971
|
Total cash costs per
ounce of gold produced
|
|
$
858
|
$
1,330
|
|
$
871
|
$
980
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher gold
grades and the higher volume of ore milled, partially offset by
lower metallurgical recovery
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to higher gold grades and higher
volume of ore milled, partially offset by lower metallurgical
recovery
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period due to the higher volume of
ore milled and lower milling costs in the current period.
Production costs per ounce decreased when compared to the
prior-year period due to more ounces of gold being produced and
lower milling costs and the weaker Euro dollar relative to the U.S.
dollar
- Full Year 2023 – Production costs per tonne decreased when
compared to the prior-year period due to the higher volume of ore
milled in the current period and stockpile adjustments between
periods. Production costs per ounce decreased when compared to the
prior-year period due to more ounces of gold being produced and the
weaker Euro dollar relative to the U.S. dollar
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne decreased
when compared to the prior-year period due to the same reasons as
for production costs per tonne. Total cash costs per ounce
decreased when compared to the prior-year period due to the same
reasons as for production costs per ounce
- Full Year 2023 – Minesite costs per tonne decreased when
compared to the prior year period primarily due to the same reasons
as for production costs per tonne. Total cash costs per ounce
decreased when compared to the prior year period due to the same
reasons as for production costs per ounce
Highlights
- On October 27, 2023, the Supreme
Administrative Court of Finland
("SAC") confirmed that the environmental permits granted to Agnico
Eagle Finland in 2020 remain valid and production can continue at a
rate of 2.0 mtpa in accordance with the permit. The Company
operated Kittila at an annualized rate of 2.0 mtpa in the first
nine months of 2023 and, following the SAC decision, the Company
was able to maintain that production rate uninterrupted for the
remainder of the year
- During the fourth quarter of 2023, a four day unplanned
maintenance shutdown was necessary to clean the autoclave which
affected mill throughput
- At the mine, the production hoist ramp up was completed and
100% of ore was hoisted via the shaft in December
- A decline in input costs for electricity, contractors and
explosives, coupled with the commissioning of the production shaft,
has led to a continued decrease in minesite costs per tonne during
the fourth quarter of 2023 when compared to previous quarters
during 2023
- The successful implementation of several environmental
initiatives, including the nitrogen removal plant, has bolstered
Kittila's environmental performance and the mine's emissions
remained below 75% of the permitted limits for the full year
MEXICO
Pinos Altos – Strong
Performance at Reyna de Plata Pit Drives Quarterly
Production
Pinos Altos Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
441
|
382
|
|
1,656
|
1,510
|
Tonnes of ore milled
per day
|
|
4,793
|
4,152
|
|
4,537
|
4,137
|
Gold grade
(g/t)
|
|
1.91
|
2.14
|
|
1.92
|
2.07
|
Gold production
(ounces)
|
|
25,963
|
25,291
|
|
97,642
|
96,522
|
Production costs per
tonne
|
|
$
87
|
$
98
|
|
$
88
|
$
96
|
Minesite costs per
tonne
|
|
$
88
|
$
97
|
|
$
88
|
$
94
|
Production costs per
ounce of gold produced
|
|
$
1,470
|
$
1,485
|
|
$
1,495
|
$
1,497
|
Total cash costs per
ounce of gold produced
|
|
$
1,210
|
$
1,255
|
|
$
1,229
|
$
1,249
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to the higher
volume of ore milled, partially offset by lower gold grades
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to higher volume of ore milled,
partially offset by lower gold grades
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period due to the higher volume of
ore milled in the current period, partially offset by the increase
in milling costs due to higher input prices. Production costs per
ounce decreased when compared to the prior-year period due to more
ounces of gold produced in the current period, partially offset by
higher milling costs and the strengthening of the Mexican Peso
relative to the U.S. dollar
- Full Year 2023 – Production costs per tonne decreased when
compared to the prior-year period due to the higher volume of ore
milled in the current period, partially offset by the increase in
open pit mining and milling costs due to higher input prices.
Production costs per ounce decreased when compared to the
prior-year period due to the same reasons outlined above and the
strengthening of the Mexican Peso relative to the U.S. dollar,
partially offset by more ounces of gold being produced in the
period
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne decreased
when compared to the prior-year period due to higher volume of ore
processed, partially offset by higher open pit mining and milling
costs from higher input prices. Total cash costs per ounce
decreased when compared to the prior-year period due to lower
underground mining costs and more ounces of gold being produced in
the period, partially offset by higher open pit mining and milling
costs and the stronger Mexican Peso relative to the U.S.
dollar
- Full Year 2023 – Minesite costs per tonne decreased when
compared to the prior year period primarily due to higher volume of
ore processed, partially offset by higher open pit mining and
milling costs from higher input prices. Total cash costs per ounce
decreased when compared to the prior year period for the same
reasons outlined above for production costs per tonne and the
stronger Mexican Peso relative to the U.S. dollar, partially offset
by more ounces of gold produced in the period
Highlights
- During the fourth quarter of 2023, strong mining performance at
the open pit operations offset lower ore tonnes mined from the
underground operations due to mining smaller stopes and resulted in
stable production quarter-over-quarter
- Production from the San Eligio zone continued to ramp up in the
fourth quarter of 2023, with seven stopes mined in the quarter, and
provides increased production flexibility to the Pinos Altos mine
La India – Mining Activities
Completed in the Fourth Quarter; Residual Leaching in 2024
La India Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
Dec 31,
2023
|
Dec 31,
2022
|
|
Dec 31,
2023
|
Dec 31,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
500
|
1,138
|
|
3,010
|
5,102
|
Tonnes of ore milled
per day
|
|
5,435
|
12,370
|
|
8,247
|
13,978
|
Gold grade
(g/t)
|
|
0.92
|
0.57
|
|
0.87
|
0.59
|
Gold production
(ounces)
|
|
19,481
|
16,669
|
|
75,904
|
74,672
|
Production costs per
tonne
|
|
$
49
|
$
18
|
|
$
32
|
$
15
|
Minesite costs per
tonne
|
|
$
45
|
$
20
|
|
$
32
|
$
16
|
Production costs per
ounce of gold produced
|
|
$
1,254
|
$
1,245
|
|
$
1,271
|
$
1,021
|
Total cash costs per
ounce of gold produced
|
|
$
1,149
|
$
1,369
|
|
$
1,241
|
$
1,056
|
Gold Production
- Fourth Quarter of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher gold
grades, partially offset by fewer tonnes of ore placed on the heap
leach after the depletion of the open pit
- Full Year 2023 – Gold production increased when compared to the
prior-year period primarily due to higher gold grades, partially
offset by fewer tonnes of ore placed on the heap leach after the
depletion of the open pit
Production Costs
- Fourth Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to the lower
volume of ore placed on the heap leach in the current period after
the depletion of the open pit. Production costs per ounce increased
when compared to the prior-year period due to the same reasons
outlined above and the strengthening of the Mexican Peso relative
to the U.S. dollar, partially offset by more ounces of gold
produced in the current period
- Full Year 2023 – Production costs per tonne increased when
compared to the prior-year period due to the lower volume of ore
placed on the heap leach in the current period after the depletion
of the open pit, partially offset by lower open pit mining costs.
Production costs per ounce increased when compared to the
prior-year period due to the same reasons outlined above for
production costs per tonne and the strengthening of the Mexican
Peso relative to the U.S. dollar, partially offset by more ounces
of gold produced in the current period
Minesite and Total Cash Costs
- Fourth Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the lower
volume of ore placed on the heap leach in the current period after
the depletion of the open pit. Total cash costs per ounce decreased
when compared to the prior-year period due to more ounces of gold
produced in the period, partially offset by the strengthening of
the Mexican Peso relative to the U.S. dollar between periods
- Full Year 2023 – Minesite costs per tonne increased when
compared to the prior-year period primarily due to the lower volume
of ore placed on the heap leach in the current period. Total cash
costs per ounce increased when compared to the prior year period
primarily due to the consumption of heap leach stockpiles with the
cessation of mining operations and the strengthening of the Mexican
Peso relative to the U.S. dollar, partially offset by more ounces
of gold produced in the current period
Highlights
- Mining and crushing activities were completed in the fourth
quarter of 2023, with residual leaching to continue into 2024
- Gold production in the fourth quarter of 2023 was better than
planned, primarily as a result of higher gold grades than
anticipated at the bottom of the open pit
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 Canada, Australia, Finland and Mexico. It has a pipeline of high-quality
exploration and development projects in these countries as well as
in the United States. Agnico Eagle
is a partner of choice within the mining industry, recognized
globally for its leading environmental, social and governance
practices. The Company was founded in 1957 and has consistently
created value for its shareholders, declaring a cash dividend every
year since 1983.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance
measures and ratios, including "total cash costs per ounce",
"all-in sustaining costs per ounce", "adjusted net income",
"adjusted net income per share", "cash provided by operating
activities before working capital adjustments", "cash provided by
operating activities before working capital adjustments per share",
"earnings before interest, taxes, depreciation and amortization"
(also referred to as EBITDA), "adjusted EBITDA", "free cash flow",
"free cash flow before changes in non-cash components of working
capital", "operating margin", "sustaining capital expenditures",
"development capital expenditures", "net debt" and "minesite costs
per tonne" that are not standardized measures under IFRS. These
measures may not be comparable to similar measures reported by
other gold mining companies. For a reconciliation of these measures
to the most directly comparable financial information reported in
the consolidated financial statements prepared in accordance with
IFRS, other than adjusted net income, see "Reconciliation of
Non-GAAP Financial Performance Measures" below.
Total cash costs per ounce of gold produced
Total cash costs per ounce of gold produced (also referred to as
"total cash costs per ounce") is reported on both a by-product
basis (deducting by-product metal revenues from production costs)
and co-product basis (without deducting by-product metal revenues).
Total cash costs per ounce of gold produced on a by-product basis
is calculated by adjusting production costs as recorded in the
consolidated statements of (loss) 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 5%
in-kind royalty paid in respect of certain portions of the Canadian
Malartic complex, a 2% in-kind royalty paid in respect of the
Detour Lake mine, a 1.5% in-kind royalty paid in respect of the
Macassa mine, as well as smelting, refining and marketing charges
and then dividing by the number of ounces of gold produced. Given
the extraordinary nature of the fair value adjustment on inventory
related to mergers and acquisitions and the use of the total cash
costs per ounce measures to reflect the cash generating
capabilities of the Company's operations, the calculations of total
cash costs per ounce for the Detour Lake, Macassa and Fosterville mines have been adjusted for this
purchase price allocation in the comparative period data and for
the Canadian Malartic complex in year ended December 31, 2023. Investors should note that
total cash costs per ounce are not reflective of all cash
expenditures, as they do not include income tax payments, interest
costs or dividend payments.
Total cash costs per ounce of gold produced on a co-product
basis is calculated in the same manner as the total cash costs per
ounce of gold produced on a by-product basis, except that no
adjustment is made for by-product metal revenues. Accordingly, the
calculation of total cash costs per ounce of gold produced on a
co-product basis does not reflect a reduction in production costs
or smelting, refining and marketing charges associated with the
production and sale of by-product metals.
Total cash costs per ounce of gold produced 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 helpful 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 of gold produced 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 of gold produced 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 it is 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.
In this news release, unless otherwise indicated, total cash
costs per ounce of gold produced is reported on a by-product basis.
Total cash costs per ounce of gold produced is reported on a
by-product basis because (i) the majority of the Company's revenues
are from gold, (ii) the Company mines ore, which contains gold,
silver, zinc, copper and other metals, (iii) it is not possible to
specifically assign all costs to revenues from the gold, silver,
zinc, copper and other metals the Company produces, (iv) it is a
method used by management and the Board of Directors to monitor
operations, and (v) many other gold producers disclose similar
measures on a by-product rather than a co-product basis.
All-in sustaining costs per ounce of gold produced
All-in sustaining costs per ounce of gold produced (also
referred to as "all-in sustaining costs per ounce" or "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 noncash expenditures, such as depreciation and
amortization. In this news release, unless otherwise indicated,
all-in sustaining costs per ounce of gold produced is reported on a
byproduct basis (see "—Total cash costs per ounce of gold produced"
for a discussion of regarding the Company's use of by-product basis
reporting).
Management believes that AISC per ounce is helpful to investors
as it reflects total sustaining expenditures of producing and
selling an ounce of gold while maintaining current operations and,
as such, provides helpful 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 total cash costs per
ounce and 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 it 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 of gold produced reported by the Company may not be
comparable to data reported by other gold mining companies.
Adjusted net income and adjusted net income per share
Adjusted net income is calculated by adjusting the net (loss)
income as recorded in the consolidated statements of (loss) income
for the effects of certain non-recurring, unusual and other items
that the Company believes are not reflective of the Company's
underlying performance for the reporting period. Adjusted net
income is calculated by adjusting net (loss) income for foreign
currency translation gains or losses, realized and unrealized gains
or losses on derivative financial instruments, revaluation gain,
impairment loss charges and reversals, environmental remediation,
severance and transaction costs related to acquisitions,
integration costs, purchase price allocations to inventory,
self-insurance losses, gains and losses on the disposal of assets,
income and mining taxes adjustments as well as other items (which
include payments that relate to prior years and disposals of
supplies inventory at non-operating sites). 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 adjusted net income and adjusted net
income per share are useful to investors in that they allow for the
evaluation of the results of continuing operations and in making
comparisons between periods. These generally accepted industry
measures 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 helpful to
investors so they can, understand and monitor for the operating
performance of the Company in conjunction with other data prepared
in accordance with IFRS. Adjusted net income and adjusted net
income per share are not standardized measures under IFRS and, as
reported by the Company, may not be comparable to similarly
labelled measures reported by other companies.
Cash provided by operating activities before working capital
adjustments and cash provided by operating activities before
working capital adjustments per share
Cash provided by operating activities before working capital
adjustments and cash provided by operating activities before
working capital adjustments per share are calculated by adjusting
the cash provided by operating activities as shown in the
consolidated statements of cash flows for the effects of changes in
non-cash components of working capital such as trade receivables,
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 working capital adjustments by the weighted average number
of shares outstanding 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 believe 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.
EBITDA and adjusted EBITDA
EBITDA, or earnings before interest, taxes, depreciation and
amortization, is calculated by adjusting the net (loss) income as
recorded in the consolidated statements of (loss) income for
finance costs, amortization of property, plant and mine development
and income and mining tax expense line items as reported in the
consolidated statements of (loss) income. EBITDA removes the
effects of certain non-recurring, unusual and other items that the
Company believes are not reflective of the Company's underlying
performance for the reporting period. Adjusted EBITDA is calculated
by adjusting the EBITDA calculation for foreign currency
translation gains or losses, realized and unrealized gains or
losses on derivative financial instruments, revaluation gains and
losses, impairment loss charges and reversals, environmental
remediation, severance and transaction costs related to
acquisitions, integration costs, purchase price allocations to
inventory, self-insurance losses, gains and losses on the disposal
of assets, as well as other items (which include payments that
relate to prior years and disposals of supplies inventory at
non-operating sites).
The Company believes EBITDA and adjusted EBITDA are useful to
investors in that they allow for the evaluation of the liquidity
generating capability of the Company to fund its working capital,
capital expenditure and debt repayments. These generally accepted
industry measures 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 helpful 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.
EBITDA and adjusted EBITDA are not standardized measures under IFRS
and, as reported by the Company, may not be comparable to similarly
labelled measures reported by other companies.
Free cash flow and Free cash flow before changes in non-cash
components of working capital
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 consolidated statements of
cash flows. Free cash flow before changes in non-cash components of
working capital is calculated by excluding the effect of changes in
non-cash components of working capital from free cash flow such as
trade receivables, income taxes, inventory, other current assets,
accounts payable and accrued liabilities and interest payable.
The Company believes that free cash flow and free cash flow
before changes in non-cash components of working capital 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. These generally accepted industry
measures 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, and believes it is
helpful to investors so they can, understand and monitor the cash
generating capability of the Company. Free cash flow and free cash
flow before changes in non-cash components of working capital are
not standardized measures under IFRS and, as reported by the
Company, may not be comparable to similarly labelled measures
reported by other companies.
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 consolidated
financial statements, the Company adds the following items to the
operating margin: income and mining taxes expense; other expenses
(income); care and maintenance expenses; foreign currency
translation (gain) loss; environmental remediation costs; gain
(loss) on derivative financial instruments; finance costs; general
and administrative expenses; amortization of property, plant and
mine development; exploration and corporate development expenses;
revaluation gain and impairment losses (reversals). The Company
believes that operating margin is a useful measure 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 helpful 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. Operating margin
is not a standardized measure under IFRS and, as reported by the
Company, may not be comparable to similarly labelled measures
reported by other companies.
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.
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 consolidated balance sheet for deferred financing
costs and cash and cash equivalents. Management believes the
measure of net debt is useful to help investors to determine the
Company's overall debt position and to evaluate future debt
capacity of the Company. Net debt is not a standardized measure
under IFRS and, as reported by the Company, may not be comparable
to similarly labelled measures reported by other companies.
Minesite costs per tonne
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of (loss) 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 of gold produced 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. Minesite costs per tonne is not a
standardized measure under IFRS and, as reported by the Company,
may not be comparable to similarly labelled measures reported by
other gold mining companies.
Forward-Looking Non-GAAP Measures
This news release also contains information as to estimated
future total cash costs per ounce, AISC per ounce and minesite
costs per tonne. The estimates are based upon the total cash costs
per ounce, AISC per ounce and minesite costs per tonne that the
Company expects to incur to mine gold at its mines and projects
and, consistent with the reconciliation of these actual costs
referred to above, do not include production costs attributable to
accretion expense and other asset retirement costs, which will vary
over time as each project is developed and mined. It is therefore
not practicable to reconcile these forward-looking non-GAAP
financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
February 15, 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", "could", "estimate", "expect", "forecast", "future",
"plan", "possible", "potential", "schedule", "target", "tracking",
"will", and similar expressions are intended to identify
forward-looking statements. Such statements include, without
limitation: the Company's forward-looking guidance, including metal
production, estimated ore grades, 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 Upper Beaver project and the Company's other
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,
Kittila, Meliadine Phase 2, the Amaruq underground project and the
Odyssey project, including the timing, funding, completion and
commissioning thereof and the commencement of production therefrom;
the potential to optimize mining and milling through improved
productivity to ensure Fosterville
remains a sustainable 175,000 ounces to 200,000 ounces producer
annually; the potential for the Macassa mine to maintain production
in excess of 300,000 ounces of gold per year based on expected
exploration results; the Company's plans at the Hope Bay project;
the Company's plans at the Wasamac project; 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 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 and the anticipated timing thereof; future
exploration; the anticipated timing of events with respect to the
Company's mine sites; the sufficiency of the Company's cash
resources; the Company's plans with respect to hedging and the
effectiveness of its hedging strategies; future activity with
respect to the Company's unsecured revolving bank credit facility,
the term loan facility and other indebtedness; future dividend
amounts, record dates and payment dates; and anticipated trends
with respect to the Company's operations, exploration and the
funding thereof. Such statements reflect the Company's views as at
the date of this news release and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be
placed on such statements. Forward-looking statements are
necessarily based upon a number of factors and assumptions that,
while considered reasonable by Agnico Eagle as of the date of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
material factors and assumptions used in the preparation of the
forward-looking statements contained herein, which may prove to be
incorrect, include, but are not limited to, the assumptions set
forth herein and in management's discussion and analysis
("MD&A") and the Company's Annual Information Form ("AIF") for
the year ended December 31, 2022
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2022 ("Form 40-F") filed with the
U.S. Securities and Exchange Commission (the "SEC") as well as:
that there are no significant disruptions affecting operations;
that production, permitting, development, expansion and the ramp-up
of operations at each of Agnico Eagle's properties proceeds on a
basis consistent with current expectations and plans; that the
relevant metal prices, foreign exchange rates and prices for key
mining and construction inputs (including labour and electricity)
will be consistent with Agnico Eagle's expectations; that Agnico
Eagle's current estimates of mineral reserves, mineral resources,
mineral grades and metal recovery are accurate; that there are no
material delays in the timing for completion of ongoing growth
projects; that seismic activity at the Company's operations at
LaRonde, Goldex and other properties is as expected by the Company
and that the Company's efforts to mitigate its effect on mining
operations are successful; that the Company's current plans to
optimize production are successful; that there are no material
variations in the current tax and regulatory environment; that
governments, the Company or others do not take additional measures
in response to the COVID-19 pandemic or otherwise that,
individually or in the aggregate, materially affect the Company's
ability to operate its business or its productivity; and that
measures taken relating to, or other effects of, the COVID-19
pandemic do not affect the Company's ability to obtain necessary
supplies and deliver them to its mine sites. Many factors, known
and unknown, could cause the actual results to be materially
different from those expressed or implied by such forward-looking
statements. Such risks include, but are not limited to: the
volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, project
development, capital expenditures and other costs; foreign exchange
rate fluctuations; inflationary pressures; financing of additional
capital requirements; cost of exploration and development programs;
seismic activity at the Company's operations, including the LaRonde
complex and Goldex mine; mining risks; community protests,
including by Indigenous groups; risks associated with foreign
operations; governmental and environmental regulation; the
volatility of the Company's stock price; risks associated with the
Company's currency, fuel and by-product metal derivative
strategies; the current interest rate environment; the potential
for major economies to encounter a slowdown in economic activity or
a recession; the potential for increased conflict or hostilities in
various regions, including Europe
and the Middle East; and the
extent and manner to which COVID-19, its variants, and other
communicable diseases or outbreaks, and measures taken by
governments, the Company or others to attempt to mitigate the
spread thereof may directly or indirectly affect the Company. For a
more detailed discussion of such risks and other factors that may
affect the Company's ability to achieve the expectations set forth
in the forward-looking statements contained in this news release,
see the AIF and MD&A filed on SEDAR at www.sedarplus.ca and
included in the Form 40-F filed on EDGAR at www.sec.gov, as well as
the Company's other filings with the Canadian securities regulators
and the SEC. Other than as required by law, the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements.