Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise
noted)
TORONTO, Oct. 25,
2023 /PRNewswire/ - Agnico Eagle Mines Limited
(NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today
reported financial and operating results for the third quarter of
2023.
"Agnico Eagle had another solid quarter with production and
costs coming in as expected. The Canadian Malartic and Meadowbank
complexes delivered strong results in the quarter, offsetting
unscheduled mill downtime at Detour Lake and highlighting the
benefit of our diverse portfolio of mines," said Ammar
Al-Joundi, Agnico Eagle's President and Chief Executive Officer.
"We are expecting a strong finish to the year and based on our
year-to-date performance, we are well positioned to achieve our
cost guidance and expect gold production to come in above the
mid-point of our annual production guidance," added Mr.
Al-Joundi.
Third quarter 2023 highlights
- Quarterly gold production and cost performance remain
solid – Payable gold production1 in the third
quarter of 2023 was 850,429 ounces at production costs per ounce of
$893, total cash costs per
ounce2 of $898 and all-in
sustaining costs ("AISC") per ounce3 of $1,210
- Strong quarterly financial results – The Company
reported quarterly net income of $0.36 per share in the third quarter of 2023 and
adjusted net income4 of $0.44 per share. Cash provided by operating
activities was $1.01 per share
($1.35 per share before working
capital adjustments5)
- Canadian Malartic and Meadowbank drive solid production
– Gold production in the third quarter of 2023 was led by strong
production at the Canadian Malartic and Meadowbank complexes as
well as the Kittila mine, offsetting lower production at Detour
Lake and Fosterville. The strong
performance at Canadian Malartic was driven by positive grade
reconciliation at the Barnat pit and higher throughput from softer
rock conditions
- Temporary transformer issue at Detour Lake resulted in
unscheduled mill downtime – The transformer powering the
semi-autogenous grinding ("SAG") mill on one of the two grinding
circuits at the Detour Lake mill ("Line 1") failed unexpectedly in
August 2023. Leveraging the
procurement network in the Abitibi region, the Company was able to
refurbish the failed transformer within 25 days. During the SAG
unit downtime on Line 1, the Company operated the Detour Lake mill
at approximately 70% of normal operating rates, resulting in lower
production in the third quarter of 2023. The mill returned to
normal operating levels in the second half of September 2023. The Company believes Detour Lake
is well positioned to achieve the low end of its annual production
guidance
- Supreme Administrative Court of Finland ("SAC") decision on the Kittila
operating permit remains pending – The SAC has informed the
Company that it will issue its decision on Kittila's operating
permit in October 2023. If the SAC
reverses the lower court ruling and reinstates the operating permit
at 2.0 million tonnes per annum ("mtpa") by the end of October 2023, the Company expects Kittila to
produce up to an additional 30,000 ounces of gold in the fourth
quarter of 2023 as compared to current production guidance. If the
SAC does not release its decision by the end of October or upholds
the lower court decision and maintains the current operating permit
at 1.6 mtpa, the Company will be required to partially suspend its
activities in the fourth quarter of 2023 to remain within the
permitted rate. Under this scenario, Kittila's annual production is
still expected to be within the annual guidance range of between
190,000 and 210,000 ounces of gold, which was based on a rate of
1.6 mtpa
- Gold production, cost and capital expenditure guidance
reiterated for 2023 – Based on operating performance in the
first nine months of 2023, the Company is on-track to be above the
mid-point of its production guidance for 2023. Expected payable
gold production in 2023 remains unchanged at approximately 3.24 to
3.44 million ounces with total cash costs per ounce expected to be
between $840 and $890 and AISC per ounce expected to be between
$1,140 and $1,190. Estimated total capital expenditures
(excluding capitalized exploration) for 2023 remain at
approximately $1.42 billion
- Update on key value drivers and pipeline projects
- Odyssey project at the Canadian Malartic complex –
Production via the ramp at the Odyssey South deposit increased
through the quarter reaching 3,300 tonnes per day ("tpd") in
September, approaching the planned mining rate of 3,500 tpd for
2024. With a positive reconciliation of 18% in gold ounces for the
first four stopes mined compared to plan, the internal zones
continue to provide upside in tonnage and grade at Odyssey South.
Shaft sinking activities continued in the third quarter of 2023,
reaching a depth of 130 metres at the end of the quarter. Ramp
development continued to exceed targets, reaching a depth of 649
metres at the end of the third quarter of 2023. With this strong
development performance, the Company is advancing shaft pre-sinking
activities. Exploration drilling in the quarter focused on
infilling the internal zones at the Odyssey South deposit and
mineral resource expansion of the East Gouldie deposit to the east
and west
- Detour Lake – Prior to the transformer failure, the mill
availability was at 92%, which was the targeted rate for 2023 and
reflected sustained improvements to the maintenance strategy. At
the time, throughput was also on track to achieve the expected
level of 27.2 mtpa for 2023 and it is now expected to be
approximately 25.9 mtpa for 2023. Mill optimization initiatives
continued through the quarter with the objective of continuing to
increase throughput to 28.0 mtpa by 2025. Drilling continues to
investigate the West Pit extension of the deposit, while tighter
infill drilling in two test areas confirming continuity of higher
grade zones which supports a potential underground mining
scenario
- Hope Bay – At Madrid, six exploration drills continued
to advance step-out drilling on a two-kilometre long, previously
untested gap between the Suluk and Patch 7 zones. Initial results
show the potential to define a new high grade zone, with intercepts
up to 15.9 g/t gold over 4.6 metres at 609 metres depth
- Executive Chair Transition – The Company installed the
Executive Chair board structure at the time of the Merger with
Kirkland Lake Gold to assist in
managing the integration of the businesses, with the intention to
transition to a traditional Chair structure in time. With the
integration of Agnico Eagle and Kirkland
Lake Gold successfully completed, the Company now announces
that Mr. Boyd will transition from Executive Chair to Chair of the
board of directors of Agnico Eagle with an effective date of
December 31, 2023. In this new role,
the Company will continue to benefit from Mr. Boyd's leadership,
decades of experience and strategic vision. Mr. Sokalsky will
remain Lead Director and Mr. Parr will remain Vice-Chair
- 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, unless
otherwise specified, is reported on a by-product basis in this news
release. For a description of the composition and usefulness of
this non-GAAP measure, as well as 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"
below.
3 AISC per ounce is a non-GAAP ratio that is not a
standardized financial measure under the IFRS and, unless otherwise
specified, is reported on a by-product basis in this news release.
For a description of the composition and usefulness of this
non-GAAP measure, as well as 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" below and "Note Regarding Certain Measures of
Performance" below.
4 Adjusted net income and adjusted net income per
share are non-GAAP measures that are not standardized financial
measures under IFRS. For a description of the composition and
usefulness of this non-GAAP measure, as well as a reconciliation to
net income and net income per share see "Reconciliation of Non-GAAP
Financial Performance Measures"and "Note Regarding Certain Measures
of Performance" below.
5 Cash provided by operating activities before
working capital adjustments is a non-GAAP measure that is not
standardized financial measures under IFRS. For a description of
the composition and usefulness of this non-GAAP measure, as well as
a reconciliation to net income and net income per share see
"Reconciliation of Non-GAAP Financial Performance Measures"and
"Note Regarding Certain Measures of Performance" below.
|
Third Quarter 2023 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Thursday, October 26, 2023 at
11:00 AM (E.D.T.) to discuss
the Company's third quarter 2023 financial and operating
results.
Via Webcast:
A live audio webcast of the conference call will be available on
the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial
1-416-764-8659 or toll-free 1-888-664-6392. To ensure your
participation, please call approximately five minutes prior to the
scheduled start of the call.
Via URL Entry:
To join the conference call without operator assistance, you may
register and enter your phone number at https://bit.ly/3CqkUBg to
receive an instant automated call back.
Replay Archive:
Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access
code 587191#. The conference call replay will expire on
November 26, 2023.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
Third Quarter 2023 Production and Cost Results
Production and Cost
Results Summary*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Gold production
(ounces)
|
|
850,429
|
816,795
|
|
2,536,446
|
2,335,569
|
Gold sales
(ounces)
|
|
843,097
|
830,246
|
|
2,489,503
|
2,359,691
|
Production costs per
ounce
|
|
$
893
|
$
804
|
|
$
850
|
$
846
|
Total cash costs per
ounce
|
|
$
898
|
$
779
|
|
$
857
|
$
769
|
AISC per
ounce
|
|
$
1,210
|
$
1,106
|
|
$
1,162
|
$
1,067
|
* Production results
summary reflects 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
- Third Quarter of 2023 – Gold production increased when compared
to the prior-year period 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"), partially offset by lower production at the
Detour Lake and Fosterville mines
and the LaRonde complex
- First Nine Months of 2023 – Gold production increased when
compared to the prior-year period as a result of a full nine months
contribution in 2023 from the Detour Lake, Macassa and Fosterville mines as opposed to 234 days in
the first nine months of 2022 following the closing of the merger
(the "Merger") with Kirkland Lake Gold Ltd. on February 8, 2022 and the additional production
from the acquisition of the remaining 50% of the Canadian Malartic
complex, partially offset by lower production at the LaRonde and
Fosterville mines
Production Costs per Ounce
- Third Quarter of 2023 – Production costs per ounce increased
when compared to the prior-year period primarily due to higher
minesite costs per tonne resulting from inflation. A detailed
description of the minesite costs per tonne at each mine is set out
below
- First Nine Months of 2023 – Production costs per ounce
increased when compared to the prior-year period for the same
reason as set out above in respect of the third quarter of
2023
Total Cash Costs per Ounce
- Third Quarter of 2023 – Total costs per ounce increased when
compared to the prior-year period primarily due to higher minesite
costs per tonne resulting from inflation and higher royalties
resulting from the acquisition of the remaining 50% of the Canadian
Malartic complex in the third quarter of 2023. A detailed
description of the minesite costs per tonne at each mine is set out
below
- First Nine Months of 2023 – Total cash costs per ounce
increased when compared to the prior-year period for the same
reasons as set out above in respect of the third quarter of
2023
AISC per Ounce
- Third Quarter of 2023 – AISC per ounce increased when compared
to the prior-year period due to the same reasons that caused higher
total cash costs per ounce during the period
- First Nine Months of 2023 – AISC per ounce increased when
compared to the prior-year period due to the same reasons that
caused higher total cash costs per ounce during the period
Third Quarter 2023 Financial Results
Financial Results
Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Realized gold price
($/ounce)
|
|
$
1,928
|
$
1,726
|
|
$
1,933
|
$
1,821
|
Net income ($
millions)
|
|
$
178.6
|
$
66.7
|
|
$
2,322.3
|
$
476.1
|
Adjusted net income ($
millions)
|
|
$
219.9
|
$
222.5
|
|
$
813.6
|
$
829.1
|
EBITDA6 ($
millions)
|
|
$
722.0
|
$
518.8
|
|
$
3,878.4
|
$
1,724.4
|
Adjusted
EBITDA6 ($ millions)
|
|
$
763.3
|
$
674.5
|
|
$
2,369.7
|
$
2,076.5
|
Cash provided by
operating activities ($ millions)
|
|
$
502.1
|
$
575.4
|
|
$
1,873.7
|
$
1,716.1
|
Cash provided by
operating activities before
working capital adjustments ($ millions)
|
|
$
668.7
|
$
558.4
|
|
$
1,970.5
|
$
1,630.3
|
Capital
expenditures*
|
|
$
406.4
|
$
428.1
|
|
$
1,164.2
|
$
1,079.7
|
Free cash
flow7 ($ millions)
|
|
$
82.3
|
$
139.8
|
|
$
645.3
|
$
578.7
|
Free cash flow before
changes in non-cash
components of working capital7 ($ millions)
|
|
$
248.8
|
$
122.7
|
|
$
742.1
|
$
492.9
|
|
|
|
|
|
|
|
Net income per share
(basic)
|
|
$
0.36
|
$
0.15
|
|
$
4.78
|
$
1.10
|
Adjusted net income per
share (basic)
|
|
$
0.44
|
$
0.49
|
|
$
1.67
|
$
1.92
|
Cash provided by
operating activities before
working capital adjustments (basic)
|
|
$
1.35
|
$
1.23
|
|
$
4.05
|
$
3.78
|
Cash provided by
operating activities (basic)
|
|
$
1.01
|
$
1.26
|
|
$
3.85
|
$
3.98
|
*Includes capitalized
exploration
|
Net Income
- Third Quarter of 2023
- Net income was $178.6 million
($0.36 per share). This result
includes the following items (net of tax): derivative losses on
financial instruments of $23.6
million ($0.04 per share),
foreign currency translation loss on deferred tax liabilities of
$10.4 million ($0.02 per share), non-cash foreign currency
translation gain of $6.5 million
($0.01 per share), transaction costs
related primarily to the San Nicolas development project joint
venture of $4.6 million ($0.01 per share) and various other adjustment
losses of $9.2 million ($0.02 per share).
- Excluding the above items results in adjusted net income of
$219.9 million or $0.44 per share for the third quarter of
2023.
- Included in the third quarter of 2023 net income, and not
adjusted above, is a non-cash stock option expense of $2.5 million ($0.01
per share).
- Net income increased in the third quarter of 2023 compared to
the prior-year period primarily due to higher mine operating
margins8 from higher realized gold prices, higher sales
volumes resulting from the acquisition of the remaining 50% of
Canadian Malartic, a smaller loss on derivative financial
instruments and lower income and mining tax expenses, partially
offset by higher amortization.
- First Nine Months of 2023 – Net income increased in the first
nine months of 2023 compared to the prior-year period 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. The fair value of the Company's previously held 50%
interest and the resulting gain on remeasurement, along with the
fair values allocated to assets acquired and liabilities assumed
are preliminary, and are subject to adjustment based on further
analysis and evaluation over the course of the measurement period
which may not exceed 12 months from the acquisition date.
__________________________
|
6
"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 this non-GAAP
measure, as well as a reconciliation to net income see
"Reconciliation of Non-GAAP Financial Performance Measures" and
"Note Regarding Certain Measures of Performance" below.
7 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 this non-GAAP
measure, as well as a reconciliation to Cash provided by operating
activities see "Reconciliation of Non-GAAP Financial Performance
Measures"and "Note Regarding Certain Measures of Performance"
below.
8 Operating margin is a non-GAAP measure that is
not a standardized measure under IFRS. For a reconciliation to net
income see "Summary of Operations Key Performance Indicators"
below. See also "Note Regarding Certain Measures of
Performance".
|
Adjusted EBITDA
- Third Quarter of 2023 – Adjusted EBITDA increased when compared
to the prior-year period primarily due to higher mine operating
margins from higher sales volumes resulting from the acquisition of
the remaining 50% of Canadian Malartic and a smaller loss on
derivative financial instruments
- First Nine Months of 2023 – Adjusted EBITDA increased when
compared to the prior-year period primarily due to the reasons set
out above
Cash Provided by Operating Activities
- Third Quarter of 2023 – Cash provided by operating activities
decreased when compared to the prior-year period primarily due to
increased working capital requirements from the seasonality of the
Nunavut sealift. 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
- First Nine Months 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 sales volumes from a full nine
months contribution in 2023 from the Detour Lake, Macassa and
Fosterville mines as opposed to
234 days in the first nine months of 2022 following the closing of
the Merger and higher sales volumes from the acquisition of the
remaining 50% of the Canadian Malartic complex
Capital Expenditures
- For a discussion of capital expenditures, please see below
Free Cash Flow Before Changes in Non-Cash Components of
Working Capital
- Third Quarter of 2023 – Free cash flow before changes in
non-cash components of working capital increased when compared to
the prior-year period due to the reasons described above relating
to cash provided by operating activities and lower additions to
property, plant and mine development
- First Nine Months of 2023 – Free cash flow before changes in
non-cash components of working capital increased when compared to
the prior-year period due to the reasons described above relating
to cash provided by operating activities, partially offset by lower
additions to property, plant and mine development
Investment Grade Balance Sheet Remains Strong
Net Debt9
Net Debt
Summary
|
|
|
|
|
|
|
|
As at
|
As at
|
|
|
Sep 30,
2023
|
Jun 30,
2023
|
Cash and cash
equivalents ($ millions)
|
|
$
355.5
|
$
432.5
|
Current portion of
long-term debt ($ million)
|
|
$
100.0
|
$
—
|
Long-term debt ($
millions)
|
|
$
1,842.6
|
$
1,942.0
|
Net debt ($
millions)
|
|
$
1,587.1
|
$
1,509.5
|
Cash and cash equivalents decreased when compared to the prior
quarter primarily due to lower cash provided by operating
activities arising from increased working capital requirements from
the seasonality of the Nunavut
sealift. At September 30, 2023, the
Company's debt (current and long-term) was $1,942.6 million and, despite the Nunavut sealift, net debt only increased
slightly to $1,587.1 million from the
June 30, 2023 balance of $1,509.5 million.
As of September 30, 2023, the
outstanding balance on the Company's unsecured revolving bank
credit facility remained at $100
million, and available liquidity under this facility was
approximately $1.1 billion, not
including the uncommitted $600
million accordion feature.
Hedges
The Company continues to benefit from a stronger US dollar
against the currencies in the jurisdictions in which it operates;
the Canadian dollar, Euro, Australian dollar and Mexican peso.
These currency tailwinds have provided some relief against
inflationary pressures. Approximately 64% of the Company's
estimated Canadian dollar exposure for the remainder of the year is
hedged at an average floor price above 1.32
C$/US$. Approximately 29% of the Company's estimated Euro
exposure for the remainder of the year is hedged at an average
floor price of approximately 1.03
US$/EUR. Approximately 58% of the Company's estimated
Australian dollar exposure for the remainder of the year is hedged
at an average floor price above 1.46
A$/US$. Approximately 33% of the Company's estimated Mexican
peso exposure for the remainder of the year is hedged at an average
floor price above 20.70 MXP/US$. The
Company's full year 2023 cost guidance is based on assumed exchange
rates of 1.32 C$/US$, 1.10 US$/EUR, 1.40
A$/US$ and 20.00 MXP/US$.
With the 2023 sealift purchase of diesel for the Company's
Nunavut operations completed,
approximately 72% of the Company's diesel exposure for the
remainder of the year is hedged at an average price of $0.70 per litre, compared to the 2023 cost
guidance assumption of $0.93 per
litre. The sea-lift purchase, along with financial hedges, will
continue to help mitigate operating cost risks and are expected to
provide protection against diesel price inflation for the remainder
of the year.
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs. Current hedging positions are not factored into 2023 and
future guidance.
_____________________
|
9 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, as well as a reconciliation to
long-term debt, see "Reconciliation of non-GAAP Financial
Performance Measures" and "Note Regarding Certain Measures of
Performance" below.
|
Capital Expenditures
The following table sets out capital expenditures (including
sustaining capital expenditures10 and development
capital expenditures10) and capitalized exploration in
the third quarter of 2023. Total expected capital expenditures
(including capitalized exploration) remain in line with guidance
for the full year 2023.
Capital
Expenditures
|
|
(In thousands of U.S.
dollars)
|
|
|
|
|
|
|
Capital
Expenditures*
|
|
Capitalized
Exploration
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
Sep 30,
2023
|
Sep 30,
2023
|
|
Sep 30,
2023
|
Sep 30,
2023
|
Sustaining Capital
Expenditures
|
|
|
|
|
|
LaRonde
complex
|
20,686
|
56,213
|
|
713
|
1,609
|
Canadian Malartic
complex**
|
21,549
|
72,219
|
|
—
|
—
|
Goldex mine
|
6,212
|
14,378
|
|
264
|
558
|
Detour Lake
mine
|
68,680
|
182,642
|
|
—
|
—
|
Macassa
mine
|
12,963
|
27,999
|
|
634
|
1,142
|
Meliadine
mine
|
21,997
|
48,913
|
|
1,244
|
5,118
|
Meadowbank
complex
|
29,101
|
100,356
|
|
—
|
—
|
Hope Bay
project
|
—
|
147
|
|
—
|
—
|
Fosterville
mine
|
9,852
|
24,773
|
|
205
|
551
|
Kittila
mine
|
10,347
|
31,567
|
|
386
|
1,459
|
Pinos Altos
mine
|
5,777
|
21,836
|
|
665
|
1,263
|
La India
mine
|
23
|
94
|
|
—
|
6
|
Total Sustaining
Capital
|
$
207,187
|
$
581,137
|
|
$
4,111
|
$
11,706
|
|
|
|
|
|
|
Development Capital
Expenditures
|
|
|
|
|
LaRonde
complex
|
18,186
|
51,293
|
|
—
|
—
|
Canadian Malartic
complex**
|
36,169
|
112,535
|
|
2,972
|
6,545
|
Goldex mine
|
3,149
|
19,224
|
|
365
|
2,417
|
Akasaba West
project
|
7,990
|
27,065
|
|
—
|
—
|
Detour Lake
mine
|
33,906
|
81,289
|
|
7,662
|
24,944
|
Macassa
mine
|
16,644
|
53,802
|
|
6,392
|
21,307
|
Meliadine
mine
|
34,687
|
84,382
|
|
3,049
|
8,508
|
Amaruq underground
project
|
47
|
357
|
|
—
|
—
|
Hope Bay
project
|
1,099
|
4,298
|
|
—
|
—
|
Fosterville
mine
|
9,988
|
21,702
|
|
3,810
|
14,500
|
Kittila
mine
|
4,336
|
23,385
|
|
709
|
2,902
|
Pinos Altos
mine
|
(244)
|
3,131
|
|
838
|
1,949
|
Other
|
3,374
|
5,829
|
|
—
|
—
|
Total Development
Capital
|
$
169,331
|
$
488,292
|
|
$
25,797
|
$
83,072
|
Total Capital
Expenditures
|
$
376,518
|
$
1,069,429
|
|
$
29,908
|
$
94,778
|
* 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.
|
__________________________
|
10
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 this non-GAAP measure as well as a reconciliation
to additions to property, plant and mine development per the
condensed interim consolidated statements of cash flows, see
"Reconciliation of Non-GAAP Financial Performance Measures"and
"Note Regarding Certain Measures of Performance" below.
|
2023 Guidance
The Company believes it is on track to be above the mid-point of
its 2023 gold production guidance of between 3.24 and 3.44 million
ounces, which is based on the assumption that the Kittila mill
operates at an annual rate of 1.6 mtpa. Through the first nine
months of 2023, Kittila has maintained operational flexibility to
process 2.0 mtpa in 2023. The SAC has informed the Company that it
will issue its decision on Kittila's operating permit in
October 2023. If the SAC reverses the
lower court ruling and reinstates the operating permit at 2.0 mtpa
by the end of October 2023, the
Company expects Kittila to produce up to an additional 30,000
ounces of gold in the fourth quarter of 2023 as compared to current
production guidance. If the SAC does not release its decision by
the end of October or upholds the lower court decision and
maintains the current operating permit at 1.6 mtpa, the Company
will be required to partially suspend its activities in the fourth
quarter of 2023 to remain within the permitted rate. Kittila's
annual production is still expected to be within the annual
guidance range of between 190,000 and 210,000 ounces of gold, which
was based on a rate of 1.6 mtpa.
The Company also believes it is on track to meet its 2023
guidance for total cash costs per ounce and AISC per ounce of
between $840 and $890 and between $1,140 and $1,190,
respectively. Total expected capital expenditures (excluding
capitalized exploration) for 2023 remain at approximately
$1.42 billion.
The closing of the Yamana Transaction on March 31, 2023 resulted in a remeasurement of the
Company's previously-held 50% ownership of Canadian Malartic. This
remeasurement will continue to affect the Company's depreciation
and amortization for the remainder of the year as 100% of the
assets are re-measured to fair value. The 2023 depreciation and
amortization expense guidance remains between $1.50 to $1.55
billion for the full year 2023.
Update on Key Value Drivers and Pipeline Projects
Highlights on the 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, Kittila shaft, Meliadine Phase 2 expansion and Amaruq
underground) are set out in the applicable operational sections of
this news release.
Odyssey Project
Underground development and construction activities progressed
well in the third quarter of 2023. The development rate has
improved month over month, setting a monthly record of 1,030
equivalent metres achieved in September
2023. The Company is on track to reach the 1,200 metres per
month rate target in 2024. The increased use of automated equipment
continues to support the gain in development productivity, with
scoops, jumbos and cable bolters remotely operated between
shifts.
Advancing the main ramp remains the development priority for the
project. In the first nine months of 2023, the Company achieved a
lateral development rate of 166 metres per month, exceeding the
target of 150 metres per month. As at September 30, 2023, the ramp was at a depth of
649 metres. At the current ramp development rate, the Company
expects to reach the first level of the top of the
East Gouldie deposit at a depth of 750 metres in the first
half of 2024.
On Level 54, the position of the first shaft station, the
development of the first underground maintenance shop is ongoing.
The maintenance shop will include four maintenance bays, a fuel and
lube bay, a warehouse and other service bays.
Shaft sinking activities continued to ramp-up through the third
quarter of 2023, albeit at a slower rate than anticipated due to
equipment reliability issues and water infiltration requiring grout
injection. An action plan is in place to address equipment
reliability and the Company anticipates the ramp up of sinking
activities to achieve the target rate of 2.0 metres per day in the
fourth quarter of 2023. With ramp development performance
better-than-expected, the Company is advancing with the pre-sinking
of two legs of the shaft from Levels 26 to 36 and Levels 54 to 64.
The excavation of the leg between Levels 26 and 36 as well as
the overcut on Level 54 are completed.
The paste backfill plant was commissioned in July 2023. The introduction of paste backfill
facilitated an increase in production rates from 900 tpd in
August 2023 to 3,300 tpd in
September, approaching the planned mining rate of 3,500 tpd for
2024.
The integration of internal zones at Odyssey South demonstrated
upside potential in tonnes and gold grade in the short term. The
mining of the first four stopes resulted in a positive
reconciliation of 18% in gold ounces compared to plan. The Company
continues to advance the delineation drilling to help with the
predictability and modeling of these zones.
Exploration drilling at the Odyssey project during the third
quarter of 2023 continued to focus on three objectives: infill
drilling the Odyssey South zone and adjacent internal zones; infill
drilling the core portion of the East Gouldie zone; and
investigating the lateral extensions along the favourable
mineralized horizon to the east and the west. An addition of
mineral reserves is expected at the Odyssey project at year-end
2023 with the conversion of indicated mineral resources at the East
Gouldie deposit.
In regional exploration during the third quarter of 2023, the
next phase of exploration drilling commenced at the adjacent Camflo
property to the north and drilling targeted potential
mineralization analogous to the Odyssey South and Odyssey North
deposits on the Rand Malartic property to the east.
Detour Lake Mine
In the third quarter of 2023, the Detour Lake mine was affected
by the failure of the transformer powering the SAG unit of one of
the two grinding circuit lines. A detailed description of the
incident and remediation actions taken by the Company is set out in
the Detour Lake operational section of this news release.
Prior to the transformer failure, the mill availability was at
92%, reflecting sustained improvements to the maintenance strategy
and a continued effort to optimize mill processes. At the time,
throughput was also on track to achieve the expected level of 27.2
mtpa for 2023 and it is now expected to be approximately 25.9 mtpa
for 2023.
In the third quarter of 2023, the Company continued to advance
several projects to improve runtime of the mill and sustain
throughput of 28.0 mtpa. Areas of focus include improvements to the
secondary crusher re-feed system, the ball mill discharge Grizzly
and the SAG discharge lip, as well as improvements to secondary
crusher liner profiles to extend wear life and optimization of the
secondary crusher.
The Company is also assessing several projects to potentially
exceed mill throughput of 28.0 mtpa, including the implementation
of advanced process control utilizing artificial intelligence
(expert systems) and ore sorting. In the third quarter of 2023, the
Company continued to operate an ore sorting pilot plant. The
Company is targeting the pilot project to process approximately 1.5
million tonnes of low-grade material to establish the key design
criteria of a full-size sorting plant and to help determine the
economic viability of a full-size sorting operation at Detour
Lake.
Exploration drilling during the third quarter of 2023 continued
to investigate the deposit below the West Pit mineral reserve and
the western plunge extension of the mineralization to confirm the
mineralized zones potentially amenable to underground mining, with
53,283 metres of drilling completed during the third quarter or
181,822 metres completed during the first nine months of 2023.
Optimization of Assets and Infrastructure in the Abitibi
Region
During the third quarter of 2023, the Company continued to
advance the internal studies to assess potential production
opportunities at the Macassa Near Surface ("NSUR") and Amalgamated
Kirkland ("AK") deposits, and the Upper Beaver and Wasamac
projects. Among the alternatives considered, the Company is
evaluating the potential to transport ore via rail or truck to the
LaRonde and Canadian Malartic processing facilities, which are
expected to have excess mill capacity in the future. Leveraging
existing regional infrastructure has the potential to support
regional production growth at lower capital costs and with a
reduced environmental footprint, which could also be beneficial to
future permitting activities.
The NSUR and AK deposits are accessible from an existing surface
ramp at Macassa (the "Portal"). Production from the NSUR deposit
was processed at the Macassa mill in the third quarter of 2023,
with gold production of 2,778 ounces. Production from the AK
deposit is expected to begin in the second half of 2024. With the
commissioning of the Shaft #4 and increased productivity from the
Macassa deep mine, the Macassa mill is expected to reach its full
capacity of 1,650 tpd by mid-2024. The LaRonde Zone 5 ("LZ5")
processing facility at the LaRonde complex, which is approximately
130 kilometres away, was placed on care and maintenance in the
third quarter of 2023. The facility could accommodate the
processing of the NSUR and AK ores in 2024, thus avoiding capital
costs associated with a mill expansion at Macassa. Average annual
production from these two deposits could potentially be between
20,000 and 40,000 ounces of gold, commencing in 2024.
The Company is assessing the potential economic benefits of
transporting and processing the ores from the Upper Beaver and
Wasamac projects at either the LaRonde or Canadian Malartic
processing facilities. Both mill complexes are close to existing
road and rail infrastructure. A preliminary analysis of additional
infrastructure that would be required to load, transport and unload
ore for processing and the tailings required for paste backfill was
completed in the third quarter of 2023. The Company initiated
discussions with the rail operator to evaluate the operational
feasibility and operating costs of this scenario. Both Upper Beaver
and Wasamac have the potential to be low-cost mines with annual
production of 150,000 to 200,000 ounces of gold with moderate
capital outlays and initial production potentially commencing in
approximately 2030 and 2029, respectively. The Company expects
to consolidate the results of these various internal evaluations
early in 2024 and report results through the first half of
2024.
Hope Bay – Step-Out Drilling Continues to Extend Madrid's
High-Grade Patch 7 Zone at Depth and Laterally
At the Hope Bay project, exploration continued during the third
quarter of 2023 with seven drill rigs in operation targeting the
Doris and Madrid-area deposits and
regionally for a total of 31,074 metres completed in 46 drill
holes, and 119,771 metres completed in 194 holes during the first
nine months of 2023.
Exploration at Madrid remained
focused on drilling wide step-out holes spaced approximately 200
metres apart into the underexplored 2-kilometre strike extension
gap between the Suluk and Patch 7 deposits at depths between 400
and 700 metres, with a new highlight intercept in hole HBM23-109 of
15.9 g/t gold over 4.6 metres at 609 metres depth or approximately
300 metres beneath the Patch 7 mineral resource. The recent results
and several occurrences of visual gold (assays pending) have
extended this promising area of mineralization in the gap by an
additional 300 metres to the south and up to 500 metres to the
north, and indicate that gold mineralization may also extend south
of Patch 7.
The exploration drilling programs at Doris and Madrid recently ramped down for the seasonal
transition and are expected to resume at full capacity when the
snow- and ice-based drilling will be suitable in January, with a
continued focus on the wide step-out strategy at Madrid to assess the mineral resource
potential of the gap between Suluk and Patch 7 as well as the area
south of Patch 7.
The objective of the exploration program remains to grow the
mineral resources at Doris and Madrid to support future project studies and
potentially resume mining at Hope Bay. In the meantime, technical
studies continue to progress while larger production scenarios for
Hope Bay are being evaluated.
San Nicolás Project
In the third quarter of 2023, Minera de San Nicolás, which is
jointly owned by the Company and Teck Resources Limited,
continued to work on the feasibility study at San Nicolás in
Zacatecas State, Mexico, and
stakeholder engagement on the permitting process.
Environment, Social and Governance Performance
Summary
Environment and Permitting
- The Nunavut Impact Review Board ("NIRB") public hearing
process was held in September 2023 as
part of the regulatory process to amend the Meliadine mine's permit
to include future underground mining and associated saline water
management infrastructure at the Pump, F-Zone and Discovery
deposits. Construction and operation of a wind-farm is also
included in this application
Community Relations, Governance and People
- In September 2023, the Company
celebrated the completion and commissioning of the Shaft #4 at the
Macassa mine and commemorated the mine's 90th anniversary. As part
of the celebration, the Company announced a 10-year, $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 by providing access to cancer prevention programs
and support services. This includes improved facilitation of
Northern Ontario Indigenous populations' ability to source and
receive culturally appropriate and relevant cancer resources and
support
- In August 2023, the Company
signed a collaboration agreement with the Abitibiwinni First Nation
(Pikogan) with the goal of fostering and sustaining a long term
relationship between the Pikogan community and the LaRonde complex.
The collaboration agreement sets out measures to increase
participation in LaRonde's activities with regards to training,
jobs, business opportunities and environmental protection, as well
as providing for annual financial contributions. In addition, while
the Company is continuing its efforts to develop additional
agreements with the Algonquin Nations of the Abitibi region, it
remains supportive of a collective approach if that is the
preferred approach of the Algonquin Nations of the Abitibi
region
- In September 2023, the Company
announced the new Inunnguiniq project in Nunavut which will create partnerships with
three significant community organizations and partners with total
contributions of C$5 million:
Breakfast Club of Canada
(C$2.5 million); Illitaqsiniq
(C$2.25 million); and the Arctic Rose
Foundation (C$250,000). The objective
of the project is to promote well-being through food security and
"on the land" traditional activities in Nunavut
Dividend Record and Payment Dates for the Third Quarter of
2023
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.40 per common share,
payable on December 15, 2023 to
shareholders of record as of December 1,
2023. Agnico Eagle has declared a cash dividend every year
since 1983.
Expected Dividend Record and Payment Dates for the 2023
Fiscal Year
Record
Date
|
Payment
Date
|
March 1,
2023*
|
March 15,
2023*
|
June 1,
2023*
|
June 15,
2023*
|
September 1,
2023*
|
September 15,
2023*
|
December 1,
2023**
|
December 15,
2023**
|
Dividend Reinvestment Plan
See the following link for information on the Company's dividend
reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency
exchange program, please contact Computershare Trust Company of
Canada by phone at 1-800-564-6253
or online at www.investorcentre.com or
www.computershare.com/investor.
ABITIBI REGION, QUEBEC
LaRonde Complex – LaRonde Complex Celebrates 35th
Anniversary; Quarterly Gold Production Affected by Planned Mill
Shutdown and Maintenance of Ore Handling System; Mining at the 11-3
Zone Commences
LaRonde Complex –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
627
|
711
|
|
1,995
|
2,158
|
Tonnes of ore milled
per day
|
|
6,815
|
7,728
|
|
7,308
|
7,905
|
Gold grade
(g/t)
|
|
3.43
|
3.83
|
|
3.66
|
4.22
|
Gold production
(ounces)
|
|
64,496
|
82,621
|
|
220,883
|
276,168
|
Production costs per
tonne (C$)
|
|
$
182
|
$
187
|
|
$
157
|
$
128
|
Minesite costs per
tonne (C$)11
|
|
$
147
|
$
131
|
|
$
151
|
$
125
|
Production costs per
ounce of gold produced
|
|
$
1,321
|
$
1,234
|
|
$
1,054
|
$
781
|
Total cash costs per
ounce of gold produced
|
|
$
972
|
$
818
|
|
$
937
|
$
666
|
Gold Production
- Third Quarter of 2023 – Gold production decreased when compared
to the prior-year period primarily due to lower volumes processed
and lower grades as a result of an extended planned shutdown at the
mill and for the maintenance of the ore handling systems as well as
changes in the mining method at the LaRonde mine that resulted in
more lower grade ore being sourced from upper portions of the mine
and a slower mining rate
- First Nine Months of 2023 – Gold production decreased when
compared to the prior-year period due to lower grades and lower
volumes processed as a result of the reasons described above
_____________________________________
|
11
Minesite costs per tonne is a non-GAAP measure that does not have a
standardized meaning under IFRS. For a description of the
composition and usefulness of this non-GAAP measure, as well as a
reconciliation to production costs see "Reconciliation of Non-GAAP
Performance Measures" and "Note Regarding Certain Measures of
Performance" below.
|
Production Costs
- Third Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period primarily due to the timing
of inventory sales, partially offset by higher underground
maintenance costs and lower volume of ore milled in the current
period. Production costs per ounce increased when compared to the
prior-year period primarily due to lower gold grades and the
reasons outlined above, partially offset by a weaker Canadian
dollar relative to the U.S. dollar
- First Nine Months of 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 mill services costs resulting from the
transition to dry tailings disposition at the LaRonde mine and
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 a weaker Canadian dollar relative to
the U.S. dollar
Minesite and Total Cash Costs
- Third 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. 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
- First Nine Months of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the reasons
outlined above. Total cash costs per ounce increased when compared
to the prior-year period primarily due to the reasons outlined
above
Highlights
- Production from the 11-3 Zone at LaRonde as planned began in
the third quarter of 2023, with the first three stopes mined during
the quarter. The 11-3 Zone is expected to add additional
flexibility to the LaRonde mine production plan. Ore from the 11-3
Zone will be hoisted from the mid-shaft loading station
- Maintenance of the underground ore handling system began in the
third quarter of 2023 and is expected to continue in the fourth
quarter of 2023. The LaRonde mine is expected to undergo 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 and loading stations
- During the third quarter of 2023, the LZ5 processing facility
was placed on care and maintenance earlier than anticipated
(previously expected in the fourth quarter of 2023). Ore from LZ5
will now be processed at the LaRonde mill to take advantage of its
excess capacity
- With the further westward development of the exploration drift
on Level 215 at LaRonde, exploration drilling from the new drill
platforms began during the third quarter of 2023 with results
expected later in the year. Drilling is also ongoing from Level 9
into zones 3-1 and 3-4 and at depth in the East Mine area into
zones 10 and 20S. Surface drilling west of LZ5 during the third
quarter continued to infill inferred mineral resources in Ellison
Zone 5
- A detailed update on the Company's global exploration program
in 2023 is expected to be issued in January
2024
Canadian Malartic Complex –
Strong Quarterly Gold Production Driven by Higher Grades and Tonnes
Milled at the Barnat Pit; Production from Odyssey Underground
Continues to Ramp Up
Canadian Malartic
Complex – Operating Statistics*
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
4,911
|
4,968
|
|
14,317
|
14,590
|
Tonnes of ore milled
per day
|
|
53,380
|
54,000
|
|
52,443
|
53,443
|
Gold grade
(g/t)
|
|
1.22
|
1.04
|
|
1.22
|
1.14
|
Gold production*
(ounces)
|
|
177,243
|
75,262
|
|
435,683
|
242,957
|
Production costs per
tonne (C$)
|
|
$
34
|
$
30
|
|
$
36
|
$
30
|
Minesite costs per
tonne (C$)
|
|
$
39
|
$
33
|
|
$
39
|
$
34
|
Production costs per
ounce of gold produced
|
|
$
708
|
$
777
|
|
$
750
|
$
707
|
Total cash costs per
ounce of gold produced
|
|
$
805
|
$
820
|
|
$
789
|
$
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
- Third 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 Yamana Transaction,
higher grades and higher throughput resulting from softer rock
conditions at the Barnat pit
- First Nine Months of 2023 – Gold production increased when
compared to the prior-year period due to the same reasons outlined
above
Production Costs
- Third Quarter of 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 and a lower volume of ore milled. Production
costs per ounce decreased when compared to the prior-year period
due to more ounces of gold being produced in the current period,
partially offset by the recognition of fair value adjustments to
inventory resulting from the Yamana Transaction
- First Nine Months of 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 and a lower volume of ore milled.
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
- Third Quarter of 2023 – Minesite costs per tonne increased when
compared to the prior-year period due to higher production costs
and lower volume of ore tonnes milled during the quarter. Total
cash costs per ounce decreased when compared to the prior-year
period primarily due to more ounces of gold produced and the weaker
Canadian dollar relative to the U.S. dollar, partially offset by
higher minesite costs per tonne
- First Nine Months of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the
consumption of ore stockpiles and higher open pit mining costs.
Total cash costs per ounce increased when compared to the
prior-year period primarily due to fewer ounces of gold
produced
Highlights
- The Canadian Malartic complex delivered overall strong
performance during the quarter. At the Barnat pit, high
productivity of the equipment fleet resulted in higher volumes of
ore drilled and mined than planned. At the mill, throughput was
higher than anticipated primarily due to softer ultramafic ore from
Barnat
- Higher gold grades from the Barnat pit, coupled with a high
mill throughput and better than planned mill recoveries, drove
strong gold production in the third quarter of 2023
- After a slow start early in the quarter related to delays in
the commissioning of the paste backfill plant, production from the
ramp reached a rate of 3,300 tpd in September. This compares to a
targeted rate of 3,500 tpd for 2024. Gold production from
underground was approximately 9,000 ounces in the third quarter of
2023
- At the Canadian Malartic pit, the Company has started the
construction of the central berm 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 – Steady Operational Performance in the Third Quarter
of 2023; First Production at South Zone Sector 3 Provides
Operational Flexibility; Exploration Drilling Expected to Further
Increase Mineral Resources
Goldex Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
756
|
710
|
|
2,215
|
2,192
|
Tonnes of ore milled
per day
|
|
8,217
|
7,717
|
|
8,114
|
8,029
|
Gold grade
(g/t)
|
|
1.69
|
1.67
|
|
1.72
|
1.68
|
Gold production
(ounces)
|
|
35,880
|
33,889
|
|
107,619
|
105,211
|
Production costs per
tonne (C$)
|
|
$
51
|
$
48
|
|
$
52
|
$
46
|
Minesite costs per
tonne (C$)
|
|
$
52
|
$
49
|
|
$
52
|
$
47
|
Production costs per
ounce of gold produced
|
|
$
803
|
$
776
|
|
$
788
|
$
751
|
Total cash costs per
ounce of gold produced
|
|
$
822
|
$
804
|
|
$
802
|
$
765
|
Gold Production
- Third Quarter of 2023 – Gold production increased when compared
to the prior-year period primarily due to a higher volume of ore
processed and higher gold grades
- First Nine Months of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher gold
grades and higher volume of ore processed
Production Costs
- Third Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to higher underground
production costs, partially offset by a higher volume of ore milled
in the current period. Production costs per ounce increased when
compared to the prior-year period due to the same reasons outlined
above, partially offset by more ounces of gold being produced in
the current period and the weaker Canadian dollar relative to the
U.S. dollar
- First Nine Months of 2023 – Production costs per tonne
increased when compared to the prior-year period due to higher
underground mining and milling costs and timing of inventory sales
in the current period. Production costs per ounce increased when
compared to the prior-year period due to the same reasons outlined
above, partially offset by the weaker Canadian dollar relative to
the U.S. dollar
Minesite and Total Cash Costs
- Third 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 against the U.S. dollar
- First Nine Months of 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 higher gold grades and the weaker Canadian
dollar against the U.S. dollar
Highlights
- Goldex had a strong safety performance with zero lost time
accidents and restricted work during the third quarter of 2023 and
in the first nine months of 2023
- South Zone Sector 3 began production, ahead of schedule, during
the third quarter of 2023. 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 the main access roads and water treatment facility
completed in the third quarter of 2023. Achievement of commercial
production remains expected to occur in the first quarter of
2024
- Exploration drilling at Goldex during the third quarter of 2023
focused on three targets: the eastern extension of the South Zone
in Sector 3, with the objective of converting mineral resources
into mineral reserves and extending Sector 3 at depth and to the
east below Level 140; the Deep 3 Zone in the deepest portion of the
mine's mineral resources; and the W Zone located at shallower
underground depths approximately 200 metres west of the main
deposit at Goldex
ABITIBI REGION, ONTARIO
Detour Lake – Lower Mill Production Due to Temporary
Transformer Issue; Continued Focus on Mill Optimization to Achieve
28.0 mtpa by 2025
Detour Lake Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Jun 30,
2022*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
5,630
|
6,505
|
|
18,827
|
16,294
|
Tonnes of ore milled
per day
|
|
61,196
|
70,701
|
|
68,963
|
69,334
|
Gold grade
(g/t)
|
|
0.93
|
0.91
|
|
0.88
|
0.98
|
Gold production
(ounces)
|
|
152,762
|
175,487
|
|
483,971
|
471,445
|
Production costs per
tonne (C$)
|
|
$
25
|
$
23
|
|
$
24
|
$
29
|
Minesite costs per
tonne (C$)
|
|
$
25
|
$
25
|
|
$
26
|
$
24
|
Production costs per
ounce of gold produced
|
|
$
696
|
$
648
|
|
$
688
|
$
787
|
Total cash costs per
ounce of gold produced
|
|
$
755
|
$
691
|
|
$
752
|
$
650
|
*For the Nine Months
Ended September 30, 2022, the operating statistics are reported for
the period from February 8, 2022 (the date of the Merger) to
September 30, 2022.
|
Gold Production
- Third Quarter of 2023 – Gold production decreased when compared
to the prior-year period primarily due to a lower volume of ore
processed caused by a transformer failure, which resulted in
unscheduled downtime at one of the two grinding circuits at the
mill, partially offset by higher gold grades. Operations at the
Detour Lake mill returned to normal levels at the end of the
quarter
- First Nine Months of 2023 – Gold production increased when
compared to the prior-year period primarily due to timing of
closing of the Merger, partially offset by the impact of the
transformer failure described above
Production Costs
- Third Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to lower volume of ore
milled in the current period, as a result of the transformer
failure described above. Production costs per ounce increased when
compared to the prior-year period due to fewer ounces of gold
produced in the current period and the impact of the transformer
failure described above, partially offset by the weaker Canadian
dollar relative to the U.S. dollar
- First Nine Months of 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, given the timing of the
closing of the Merger in 2022, and the fair value adjustments to
inventory made in the 2022 period, partially offset by the impact
of the transformer failure described above. Production costs per
ounce decreased when compared to the prior-year period due to the
same reasons described above, partially offset by the weaker
Canadian dollar relative to the U.S. dollar
Minesite and Total Cash Costs
- Third Quarter of 2023 – Minesite costs per tonne remained
unchanged when compared to the prior-year period despite lower
throughput volumes. Total cash costs per ounce increased when
compared to the prior year period due to lower gold grades and
higher mining costs, partially offset by the weaker Canadian dollar
relative to the U.S. dollar
- First Nine Months of 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 third quarter of 2023, mill production was affected by a
transformer failure which resulted in 25 days of reduced throughput
(approximately 70% of normal operating levels), as further
described below
- During the third quarter of 2023, the open pit transitioned to
a mining phase with higher grade ore, which is expected to last
through the fourth quarter of 2023. Considering the higher grade
profile and the gold production in the first nine months of 2023,
the Company expects Detour Lake to achieve the low end of its
annual production guidance
- An update on the multiple initiatives to increase mill
throughput to 28.0 mtpa by 2025, potential scenarios to increase
mill throughput beyond 28.0 mtpa and exploration highlights is set
out in the Update on Key Value Drivers and Pipeline Projects
section above
Temporary Transformer issue at Detour Lake resulted in
unscheduled mill downtime
A transformer supplying power to the SAG unit on one of the two
grinding circuits at the mill, which had been in continuous
operation for approximately a decade, suffered an unexpected
failure in August 2023. Ordinarily,
transformers of this kind are expected to have a service life of
over 20 years. A spare transformer was installed as a replacement,
but it malfunctioned after 16 hours of operation. The current
results of the investigations carried out by both the Company and
external experts point to no issue other than a transformer
failure.
By capitalizing on its procurement network within the Abitibi
region, the Company managed to refurbish one of the malfunctioning
transformers in 25 days and also secure a spare transformer which
is expected to be delivered to the site by the end of October.
During the unplanned SAG unit downtime on Line 1, the company
mitigated the reduced throughput by bypassing the affected SAG unit
and redistributing the load between the two grinding circuits. As a
result, the operation continued at approximately 70% of its normal
operating capacity.
The refurbished transformer was installed and commissioned in
mid-September, with the operations returning to normal levels in
the second half of September 2023.
The Company expects higher gold grades at Detour Lake in the fourth
quarter of 2023 and, considering the gold production in the first
nine months of 2023, the Company expects Detour Lake to achieve the
low end of its annual production guidance.
Out of an abundance of caution, the Company has opted to
increase the level of redundancy by planning to have two spares
available and has ordered two additional new transformers. To
further safeguard these critical transformers against premature
failure, the Company has also increased the level of monitoring of
the operating and spare transformers by implementing an internal
data acquisition system to continuously monitor and record key
system parameters, such as current, voltage and frequency.
Macassa – Sustained Productivity Gains Result in Robust
Operational Performance and Lowest Minesite Costs per Tonne Since
the Merger; Exploration Remains Focused on Mineral Resource
Expansion
Macassa Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Jun 30,
2022*
|
Tonnes of ore milled
(thousands of tonnes)
|
|
112
|
75
|
|
311
|
210
|
Tonnes of ore milled
per day
|
|
1,217
|
814
|
|
1,139
|
894
|
Gold grade
(g/t)
|
|
13.35
|
21.89
|
|
17.16
|
20.77
|
Gold production
(ounces)
|
|
46,792
|
51,775
|
|
167,951
|
137,525
|
Production costs per
tonne (C$)
|
|
$
433
|
$
588
|
|
$
488
|
$
605
|
Minesite costs per
tonne (C$)
|
|
$
476
|
$
628
|
|
$
516
|
$
559
|
Production costs per
ounce of gold produced
|
|
$
766
|
$
648
|
|
$
669
|
$
719
|
Total cash costs per
ounce of gold produced
|
|
$
841
|
$
689
|
|
$
719
|
$
659
|
*For the Nine Months
Ended September 30, 2022, the operating statistics are reported for
the period from February 8, 2022 (the date of the Merger) to
September 30, 2022.
|
Gold Production
- Third 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
- First Nine Months of 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
- Third 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
increased when compared to the prior-year period due to fewer
ounces of gold produced in the current period, which was the result
of lower grades, partially offset by the weaker Canadian dollar
relative to the U.S. dollar
- First Nine Months 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, given the timing of the
closing of the Merger in 2022, 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 for the same reasons described above
and the weaker Canadian dollar relative to the U.S. dollar
Minesite and Total Cash Costs
- Third 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 lower gold
grades, partially offset by the weaker Canadian dollar relative to
the U.S. dollar
- First Nine Months of 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
- Macassa continues to demonstrate a robust operating
performance, with the mill quarterly throughput in line with the
record set in the second quarter of 2023
- The sustained operational and cost performance reflects the
substantial benefits derived from the operational improvement
initiatives carried out at the mine over the last two years. These
efforts have resulted in productivity gains, an increased adherence
and compliance to plan and improved equipment availability
- In the third quarter of 2023, gold grades were lower, as
anticipated by the mining sequence, and remain in line with
guidance on a year-to-date basis. The Company expects higher gold
grades in the fourth quarter of 2023
- At the Portal (ramp access to the NSUR and AK deposits),
development in the quarter was ahead of plan and production from
long hole stopes commenced. Gold production from NSUR was 2,778
ounces in the third quarter of 2023
- The construction of the enclosure of the surface fans proceeded
according to schedule in the third quarter of 2023. 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
- Exploration drilling at Macassa during the third quarter of
2023 focused on extending mineral resources in three target areas:
Lower/West South Mine Complex ("SMC"), SMC East and Main Break.
Results to date confirm gold mineralization east of Macassa, below
the past-producing Kirkland Minerals mine, opening the potential
for the discovery of mineralization under five more historical
mines of the Main Break further east
NUNAVUT
Meliadine Mine – Strong Mill Performance Continued in the
Third Quarter of 2023; Phase 2 Expansion Project on Schedule;
Exploration at Depth Continues to Yield Positive Results
Meliadine Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2023
|
|
Sep 30,
2023
|
Sep 30,
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
470
|
401
|
|
1,407
|
1,282
|
Tonnes of ore milled
per day
|
|
5,109
|
4,359
|
|
5,154
|
4,696
|
Gold grade
(g/t)
|
|
6.17
|
7.33
|
|
6.15
|
6.77
|
Gold production
(ounces)
|
|
89,707
|
91,201
|
|
267,856
|
269,477
|
Production costs per
tonne (C$)
|
|
$
254
|
$
229
|
|
$
237
|
$
235
|
Minesite costs per
tonne (C$)
|
|
$
248
|
$
226
|
|
$
249
|
$
234
|
Production costs per
ounce of gold produced
|
|
$
994
|
$
788
|
|
$
930
|
$
879
|
Total cash costs per
ounce of gold produced
|
|
$
971
|
$
777
|
|
$
975
|
$
866
|
Gold Production
- Third 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
- First Nine Months of 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
- Third Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to the consumption of
stockpiles and higher logistic 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 and fewer ounces of gold being
produced in the current period, partially offset by the weaker
Canadian dollar relative to the U.S. dollar
- First Nine Months of 2023 – Production costs per tonne
increased when compared to the prior-year period due to 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 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
- Third 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 and fewer ounces
of gold being produced, partially offset by the weaker Canadian
dollar relative to the U.S. dollar
- First Nine Months 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 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, processing 470,000 tonnes in the third quarter of
2023
- The open pit mine performed above plan in the third quarter of
2023, partially offsetting lower production from the underground
mine which was affected by lower equipment availability and
development performance
- 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 third 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 and at the power plant. Work on the secondary grinding
building is nearly complete, which will allow the completion of
mechanical and electrical work inside the building during the
winter period
- The waterline installation is underway and is expected to be
completed in 2024, allowing for utilization in the summer of
2025
- The NIRB public hearing process was held in September 2023 as part of the regulatory process
to amend the Meliadine mine's permit to include future underground
mining and associated saline water management infrastructure at the
Pump, F-Zone and Discovery deposits. Construction and operation of
a wind farm is also included in the application
- At the Tiriganiaq deposit, the ongoing extension of the
exploration drift to the east and west is providing access to new
areas of the deposit, and during the third quarter resulted in
continued positive drill results in areas towards the east at
depth, including hole ML425-9563-D21 intersecting 11.4 g/t gold
over 3.1 metres at 757 metres depth in Lode 1000. Drilling from
surface in the first nine month of 2023 in the easternmost portion
of Tiriganiaq is showing the potential to extend underground
mineral reserves towards the east at relatively shallow depth
- Third quarter of 2023 exploration activities also focused on
conversion drilling at the Wesmeg North deposit, and conversion and
exploration drilling in shallower portions of the Pump North and
Pump South deposits
Meadowbank Complex – Robust Overall Operational Performance;
Record Haulage of Underground Ore; Work Ongoing to Potentially
Extend Mine Life Beyond 2027
Meadowbank Complex –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
1,077
|
1,031
|
|
2,905
|
2,816
|
Tonnes of ore milled
per day
|
|
11,707
|
11,207
|
|
10,641
|
10,315
|
Gold grade
(g/t)
|
|
3.76
|
4.11
|
|
3.82
|
3.37
|
Gold production
(ounces)
|
|
116,555
|
122,994
|
|
322,440
|
279,457
|
Production costs per
tonne (C$)
|
|
$
167
|
$
135
|
|
$
176
|
$
141
|
Minesite costs per
tonne (C$)
|
|
$
178
|
$
144
|
|
$
177
|
$
147
|
Production costs per
ounce of gold produced
|
|
$
1,149
|
$
894
|
|
$
1,183
|
$
1,124
|
Total cash costs per
ounce of gold produced
|
|
$
1,225
|
$
930
|
|
$
1,173
|
$
1,140
|
Gold Production
- Third Quarter of 2023 – Gold production decreased when compared
to the prior-year period primarily due to lower grades, partially
offset by the higher volume of ore processed
- First Nine Months of 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
- Third Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period due to a higher stripping
ratio at the open pit and the consumption of stockpiles, 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 for the same reasons outlined above as well as
fewer ounces of gold being produced in the current period and the
weaker Canadian dollar relative to the U.S. dollar
- First Nine Months of 2023 – Production costs per tonne
increased when compared to the prior-year period due to a higher
stripping ratio at the open pit and the consumption of stockpiles,
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, 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
- Third 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 the same
reasons outlined above and fewer gold ounces produced, partially
offset by the weaker Canadian dollar relative to the U.S.
dollar
- First Nine Months 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 the same
reasons outlined above, partially offset by the weaker Canadian
dollar relative to the U.S. dollar and higher gold grades
Highlights
- The open pit operation continued to deliver a robust
performance with a high compliance to plan despite delays related
to an early caribou migration and poor weather conditions
- The underground operation ramp up progressed well during the
third quarter of 2023. Improvements in equipment availability and
productivity resulted in record quarterly production drilling and
ore hauled
- Throughput improved significantly during the third quarter of
2023, which was driven by the continued utilization of the high
pressure grinding rolls and grinding circuit optimization
- The Meadowbank complex is expected to generate strong returns
in 2024 and 2025 with annual production between 470,000 and 505,000
ounces, with production expected to decline in 2026 and 2027 as the
current mineral reserve base is depleted. Exploration efforts are
underway with the objective of delineating additional
mineralization at Amaruq and work is ongoing to evaluate the
potential to extend the mine life of the Whale Tail and IVR pits
beyond 2027
AUSTRALIA
Fosterville – Solid Mine
Development Performance; Gold Production Affected by Prioritization
of Development Headings for Primary Ventilation Upgrade
Fosterville Mine –
Operating Statistics*
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
144
|
172
|
|
468
|
385
|
Tonnes of ore milled
per day
|
|
1,565
|
1,868
|
|
1,714
|
1,640
|
Gold grade
(g/t)
|
|
13.22
|
15.11
|
|
15.48
|
20.46
|
Gold production
(ounces)
|
|
59,790
|
81,801
|
|
228,161
|
249,693
|
Production costs per
tonne (A$)
|
|
$
291
|
$
306
|
|
$
322
|
$
627
|
Minesite costs per
tonne (A$)
|
|
$
304
|
$
305
|
|
$
316
|
$
340
|
Production costs per
ounce of gold produced
|
|
$
461
|
$
418
|
|
$
438
|
$
683
|
Total cash costs per
ounce of gold produced
|
|
$
495
|
$
435
|
|
$
437
|
$
365
|
*For the Nine Months
Ended September 30, 2022, the operating statistics are reported for
the period from February 8, 2022 (the date of the Merger) to
September 30, 2022.
|
Gold Production
- Third Quarter of 2023 – Gold production decreased when compared
to the prior-year period primarily due to lower grade from mining
sequencing and the lower volume of ore processed
- First Nine Months of 2023 – Gold production decreased when
compared to the prior-year period primarily due to lower grades
from mining sequencing, partially offset by the higher volume of
ore processed and the timing of the closing of the Merger
Production Costs
- Third Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period due to lower mining and
milling costs and the weaker Australian dollar relative to the U.S.
dollar. Production costs per ounce increased when compared to the
prior-year period due to fewer ounces produced in the period,
partially offset by the lower mining and milling costs and the
weaker Australian dollar relative to the U.S. dollar
- First Nine Months of 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 the first nine months of 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
- Third Quarter of 2023 – Minesite costs per tonne decreased when
compared to the prior-year period due to lower mining and milling
costs, partially offset by the lower 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
as a result of lower gold grades, partially offset by the lower
mining and milling costs and the weaker Australian dollar relative
to the U.S. dollar
- First Nine Months of 2023 – Minesite costs per tonne decreased
when compared to the prior year period primarily due to the higher
volume of ore milled. Total cash costs per ounce increased when
compared to the prior year period primarily due to fewer ounces of
gold produced in the current quarter as a result of lower gold
grades, partially offset by 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 third quarter of 2023, the Company
completed optimization studies that are expected to de-risk
construction of the ventilation raises and the operation in the
long term. Some of the proposed changes include the relocation of
the ventilation raises in the Lower Phoenix zone, further removed
from existing mine infrastructure than initially planned, and the
installation of additional ground support in the raises. The new
design will require additional development and the Company expects
the project to be completed by early 2025
- Subsequent to the optimization studies, the Company gave
priority to the key underground development associated with the
ventilation raises and delayed the extraction of lower grade stopes
to accommodate the increased waste haulage from development
- The lower ore volume mined in the third quarter of 2023 led to
a reduced throughput at the mill, which, combined with a lower
grade sequence, resulted in lower gold production than planned. The
Company expects to achieve similar production levels in the fourth
quarter of 2023 as the mine continues to prioritize the underground
development to advance the primary ventilation upgrade
- The Company now expects full year 2023 production at
Fosterville of approximately
285,000 ounces of gold, compared to prior guidance of 295,000 to
315,000 ounces
- Exploration drilling at Fosterville during the third quarter of 2023
continued to target the Lower Phoenix deep extension from the 3912
drill drive and the Robbins Hill area
- In the Lower Phoenix, a key target is the Cardinal fault, which
is a hanging wall splay from the Swan structure. Highlight hole
UDH4761 intersected 10.8 g/t gold over 10.0 metres in the Cardinal
splay at 1,828 metres depth, approximately 190 metres down-plunge
of the mineral reserves. The result is the deepest visible-gold
intercept in the Cardinal splay achieved to date
FINLAND
Kittila – Record Monthly Mill Throughput set in July 2023; Production Hoist Commissioned in
September 2023
Kittila Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
527
|
487
|
|
1,440
|
1,504
|
Tonnes of ore milled
per day
|
|
5,728
|
5,293
|
|
5,275
|
5,509
|
Gold grade
(g/t)
|
|
4.20
|
4.56
|
|
4.45
|
4.19
|
Gold production
(ounces)
|
|
59,408
|
61,901
|
|
173,230
|
172,223
|
Production costs per
tonne (EUR)
|
|
€
101
|
€
104
|
|
€
100
|
€
96
|
Minesite costs per
tonne (EUR)
|
|
€
99
|
€
100
|
|
€
100
|
€
92
|
Production costs per
ounce of gold produced
|
|
$
986
|
$
834
|
|
$
896
|
$
896
|
Total cash costs per
ounce of gold produced
|
|
$
930
|
$
843
|
|
$
875
|
$
889
|
Gold Production
- Third Quarter of 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 milled
- First Nine Months of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher gold
grades, partially offset by the lower volume of ore tonnes
milled
Production Costs
- Third 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
increased when compared to the prior-year period due to the same
reasons outlined above and fewer ounces of gold produced in the
current period
- First Nine Months of 2023 – Production costs per tonne
increased when compared to the prior-year period due to the lower
volume of ore milled in the current period. Production costs per
ounce remained unchanged when compared to the prior-year
period
Minesite and Total Cash Costs
- Third Quarter of 2023 – Minesite costs per tonne decreased when
compared to the prior-year period due to higher mining volumes,
partially offset by higher mining costs from higher input prices.
Total cash costs per ounce increased when compared to the
prior-year period due to stockpile consumption, fewer ounces
produced and the strengthening of the Euro relative to the US
dollar between periods
- First Nine Months of 2023 – Minesite costs per tonne increased
when compared to the prior year period primarily due to higher
mining costs from higher input prices, partially offset by lower
underground mining costs. Total cash costs per ounce decreased when
compared to the prior year period due to the timing of inventory
sales and more ounces of gold produced
Highlights
- For a discussion of the expected timing and implications of the
SAC decision please see the "Third quarter 2023 highlights" section
above
- In the third quarter of 2023, Kittila continued to deliver a
strong operational performance, setting a monthly mill throughput
record of approximately 195,000 tonnes in July 2023 and processing approximately 527,000
tonnes in the quarter, in line with the 2.0 mtpa rate
- At the mine, the production hoist was commissioned and
approximately 226,000 tonnes were hoisted in the third quarter of
2023
- A decline in input costs for electricity, contractors and
explosives, coupled with the commissioning of the production shaft,
has led to a notable decrease in minesite costs per tonne during
August and September 2023 when
compared to the first seven months of the year
- The successful implementation of several environmental
initiatives, including the nitrogen removal plant, has bolstered
Kittila's environmental performance in the first nine months of
2023. The Company expects Kittila's emissions to stay below 75% of
the permitted limits for the full year even if operating at a rate
of 2.0 mtpa
- Exploration drilling during the third quarter of 2023 was
highlighted by a significant, shallow intersection in an
underexplored, parallel mineralized structure named the East Zone
located approximately 140 metres east of the mine's producing Main
Zone and outside current mineral resources. Hole SUU23004 in the
East Zone intersected 9.9 metres grading 11.8 g/t gold at 208
metres depth, including 4.8 metres grading 18.2 g/t gold at 206
metres depth, and follow-up drilling is planned
MEXICO
Pinos Altos – Gold
Production on Target with Solid Operating Performance Offsetting
Lower Gold Grades; Production from San Eligio Mine
Commenced
Pinos Altos Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
450
|
378
|
|
1,215
|
1,128
|
Tonnes of ore milled
per day
|
|
4,891
|
4,109
|
|
4,451
|
4,132
|
Gold grade
(g/t)
|
|
1.84
|
1.98
|
|
1.92
|
2.05
|
Gold production
(ounces)
|
|
25,386
|
23,041
|
|
71,679
|
71,231
|
Production costs per
tonne
|
|
$
89
|
$
91
|
|
$
89
|
$
95
|
Minesite costs per
tonne
|
|
$
85
|
$
92
|
|
$
88
|
$
93
|
Production costs per
ounce of gold produced
|
|
$
1,581
|
$
1,498
|
|
$
1,504
|
$
1,501
|
Total cash costs per
ounce of gold produced
|
|
$
1,310
|
$
1,295
|
|
$
1,236
|
$
1,247
|
Gold Production
- Third 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
- First Nine Months of 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
- Third 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. Production costs per ounce increased when
compared to the prior-year period due to higher milling costs and
the strengthening of the Mexican Peso relative to the US dollar
between periods, partially offset by more ounces of gold produced
in the current period
- First Nine Months 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 open pit mining and milling costs. 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 US dollar between periods
Minesite and Total Cash Costs
- Third 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
increased when compared to the prior-year period due to higher open
pit mining and milling costs and the stronger Mexican Peso relative
to the US dollar between periods, partially offset by more ounces
of gold produced in the period
- First Nine Months of 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 and the stronger Mexican Peso relative to
the US dollar between periods
Highlights
- Higher than planned mill throughput in the third quarter of
2023 was enabled by solid mining performance in both the
underground and open pit operations. This performance helped
mitigate lower gold grades resulting from higher mining dilution in
the underground operations
- Production from the San Eligio zone commenced in the third
quarter of 2023 and is expected to ramp up in the fourth quarter of
2023, providing increased production flexibility to the
Pinos Altos mine
- Exploration drilling during the third quarter of 2023 returned
positive gold and silver results at shallow depths in the Puerto
Amarillo and Moctezuma target
located in the northwest, lateral extensions of the two main
mineralized structures at Pinos
Altos
- At the advanced underground Cubiro project in the northwest of
the property, exploration drilling totalled 8,277 metres in 36
holes year to date, and confirmed and extended the main ore shoots
in the Central, East and North Cubiro zones. The good results from
near surface infill drilling may have a positive impact on the
mineral reserves and mineral resources and the mine plan
La India – Gold Production
ahead of Forecast from Strong Operating Performance and Higher Gold
Grades
La India Mine –
Operating Statistics
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
Sep 30,
2023
|
Sep 30,
2022
|
|
Sep 30,
2023
|
Sep 30,
2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
970
|
1,045
|
|
2,510
|
3,964
|
Tonnes of ore milled
per day
|
|
10,543
|
11,359
|
|
9,194
|
14,520
|
Gold grade
(g/t)
|
|
1.1
|
0.72
|
|
0.86
|
0.59
|
Gold production
(ounces)
|
|
22,269
|
16,285
|
|
56,423
|
58,003
|
Production costs per
tonne
|
|
$
29
|
$
19
|
|
$
29
|
$
14
|
Minesite costs per
tonne
|
|
$
27
|
$
19
|
|
$
29
|
$
14
|
Production costs per
ounce of gold produced
|
|
$
1,271
|
$
1,246
|
|
$
1,277
|
$
956
|
Total cash costs per
ounce of gold produced
|
|
$
1,156
|
$
1,196
|
|
$
1,272
|
$
966
|
Gold Production
- Third 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
- First Nine Months of 2023 – Gold production decreased when
compared to the prior-year period primarily due to fewer tonnes of
ore placed as the open pit gets depleted, partially offset by
higher gold grades
Production Costs
- Third Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to consumption
of heap leach ore stockpiles, timing of inventory sales, the
strengthening of the Mexican Peso relative to the US dollar between
periods and the lower volume of ore placed in the current period.
Production costs per ounce increased when compared to the
prior-year period due to the same reasons outlined above, partially
offset by more ounces of gold produced in the current period
- First Nine Months of 2023 – Production costs per tonne
increased when compared to the prior-year period due to consumption
of heap leach ore stockpiles, the strengthening of the Mexican Peso
relative to the US dollar between periods and lower volume of ore
placed in the current period. Production costs per ounce increased
when compared to the prior-year period due to the same reasons
outlined above, and fewer ounces of gold produced in the current
period
Minesite and Total Cash Costs
- Third Quarter of 2023 – Minesite costs per tonne increased when
compared to the prior-year period primarily due to the lower volume
of ore placed in the current period. 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 US dollar between
periods
- First Nine Months of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the lower
volume of ore placed in the current period. 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 and the
strengthening of the Mexican Peso relative to the US dollar between
periods
Highlights
- Open pit performance benefited from high availability and
productivity of loaders and shorter haulage distances, resulting in
approximately 60% more tonnes moved than planned in the third
quarter of 2023
- Gold production in the third quarter of 2023 was better than
planned, primarily as a result of higher gold grades than
anticipated at the bottom of the open pit
- Mining and crushing activities are expected to be completed in
the fourth quarter of 2023, with residual leaching to continue into
2024
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company, 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", "minesite costs per tonne",
"net debt", "adjusted net income", "adjusted net income 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 cash flow", "operating cash flow before
changes in working capital per share", "sustaining capital
expenditures", "development capital expenditures" and "operating
margin" that are not standardized measures under IFRS. These
measures may not be comparable to similar measures reported by
other gold mining companies. For a reconciliation of these measures
to the most directly comparable financial information reported in
the consolidated financial statements prepared in accordance with
IFRS, other than adjusted net income, see "Reconciliation of
Non-GAAP Financial Performance Measures" below.
The total cash costs per ounce of gold produced (also referred
to as "total cash 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). The total cash costs per ounce of gold
produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of
income (loss) for by-product revenues, inventory production costs,
the impact of purchase price allocation in connection with mergers
and acquisitions 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. Certain line items such as operational
care and maintenance costs due to COVID-19 and realized gains and
losses on hedges of production costs were previously classified as
"other adjustments" and are now disclosed separately to provide
additional detail on the reconciliation, allowing investors to
better understand the impacts of such factors on total cash costs
per ounce and minesite costs per tonne. In addition, 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 measure to reflect the cash generating capabilities
of the Company's operations, the calculation 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 the three and nine months ended
September 30, 2023. The 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. The total cash costs per ounce of gold
produced is intended to provide 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, these measures in
conjunction with minesite costs per tonne as well as other data
prepared in accordance with IFRS. Management also performs
sensitivity analysis in order to quantify the effects of
fluctuating metal prices and exchange rates. 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. These measures also do not include
depreciation or amortization.
Agnico Eagle's primary business is gold production and the focus
of its current operations and future development is on maximizing
returns from gold production, with other metal production being
incidental to the gold production process. Accordingly, all metals
other than gold are considered by-products.
In this press release, unless otherwise indicated, total cash
costs per ounce of gold produced is reported on a by-product basis.
Total cash costs per ounce of gold produced is reported on a
by-product basis because (i) the majority of the Company's revenues
are from gold, (ii) the Company mines ore, which contains gold,
silver, zinc, copper and other metals, (iii) it is not possible to
specifically assign all costs to revenues from the gold, silver,
zinc, copper and other metals the Company produces, (iv) it is a
method used by management and the Board of Directors to monitor
operations, and (v) many other gold producers disclose similar
measures on a by-product rather than a co-product basis. Investors
should also consider these measures in conjunction with other data
prepared in accordance with IFRS.
In this press release, unless otherwise indicated, all-in
sustaining costs per ounce of gold produced is reported on a
by-product basis. All-in sustaining costs per ounce of gold
produced (also referred to as "all-in sustaining costs per ounce")
on a by-product basis is calculated as the aggregate of total cash
costs on a by-product basis, sustaining capital expenditures
(including capitalized exploration), general and administrative
expenses (including stock options), lease payments related to
sustaining assets and reclamation expenses, and then dividing by
the number of ounces of gold produced. These additional costs
reflect the additional expenditures that are required to be made to
maintain current production levels. The AISC per ounce of gold
produced on a co-product basis is calculated in the same manner as
the AISC per ounce of gold produced on a by-product basis, except
that the total cash costs on a co-product basis are used, meaning
no adjustment is made for by-product metal revenues. AISC per ounce
seeks to reflect total sustaining expenditures of producing and
selling an ounce of gold while maintaining current operations.
Management is aware, and investors should note, that these per
ounce measures of performance can be affected by fluctuations in
foreign exchange rates and, in the case of total cash costs per
ounce and AISC of gold produced on a by-product basis, by-product
metal prices. Management compensates for these inherent limitations
by using these measures in conjunction with minesite costs per
tonne as well as other data prepared in accordance with IFRS.
Investors should note that AISC per ounce is not reflective of all
cash expenditures as it does not include income tax payments,
interest costs or dividend payments. This measure also does not
include depreciation or amortization.
The World Gold Council ("WGC") is a non-regulatory market
development organization for the gold industry. Although the WGC is
not a mining industry regulatory organization, it has worked
closely with its member companies to develop relevant non-GAAP
measures. The Company follows the guidance on all-in sustaining
costs released by the WGC in November
2018. Adoption of the AISC metric is voluntary and,
notwithstanding the Company's adoption of the WGC's guidance, AISC
per ounce of gold produced reported by the Company may not be
comparable to data reported by other gold mining
companies. The Company believes that this measure provides
helpful information about operating performance. However, this
non-GAAP measure should be considered together with other data
prepared in accordance with IFRS as it is not necessarily
indicative of operating costs or cash flow measures prepared in
accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the consolidated statements of income (loss)
for inventory production costs, operational care and maintenance
costs due to COVID-19, and other adjustments, and then dividing by
tonnage of ore processed. As the total cash costs per ounce of gold
produced can be affected by fluctuations in by‑product metal prices
and foreign exchange rates, management believes, and investors
should note, that minesite costs per tonne is useful to investors
in providing additional information regarding the performance of
mining operations, eliminating the impact of varying production
levels. Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated based
on the net realizable value of each tonne mined, in order to be
economically viable the estimated revenue on a per tonne basis must
be in excess of the minesite costs per tonne. Management is aware,
and investors should note, that this per tonne measure of
performance can be affected by fluctuations in processing levels.
This inherent limitation may be partially mitigated by using this
measure in conjunction with production costs prepared in accordance
with IFRS.
Net debt is calculated by adjusting the total of the current
portion of long-term debt and non-current long-term debt as
recorded on the consolidated balance sheet for deferred financing
costs and cash and cash equivalents. Management believes the
measure of net debt is useful to help investors to determine the
Company's overall debt position and to evaluate future debt
capacity of the Company.
Adjusted net income and adjusted net income per share are
calculated by adjusting the net income as recorded in the
consolidated statements of income (loss) for the effects of certain
non-recurring, unusual and other items that the Company believes
are not reflective of the Company's underlying performance for the
reporting period. Adjusted net income is calculated by adjusting
net income for foreign currency translation gains or losses,
realized and unrealized gains or losses on derivative financial
instruments, revaluation gain, impairment loss charges and
reversals, environmental remediation, severance and transaction
costs related to acquisitions, purchase price allocations to
inventory, income and mining taxes adjustments as well as other
items (which includes changes in estimates of asset retirement
obligations at closed sites and gains and losses on the disposal of
assets, self-insurance losses, multi-year donations and integration
costs). Adjusted net income per share is calculated by dividing
adjusted net income by the number of shares outstanding on a basic
and diluted basis. The Company believes that these generally
accepted industry measures are useful in that they allow for the
evaluation of the results of continuing operations and in making
comparisons between periods. Adjusted net income and adjusted net
income per share are intended to provide investors with information
about the Company's continuing income generating capabilities from
its core mining business, excluding the above adjustments, which
are not reflective of operational performance. Management uses this
measure to, and believes it is helpful to investors so they can,
understand and monitor for the operating performance of the Company
in conjunction with other data prepared in accordance with
IFRS.
EBITDA is calculated by adjusting the net income as recorded in
the condensed interim consolidated statements of income for finance
costs, amortization of property, plant and mine development and
income and mining tax expense line items as reported in the
condensed interim consolidated statements of income. Adjusted
EBITDA removes the effects of certain 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, purchase price
allocations to inventory, income and mining taxes adjustments as
well as other items (which includes changes in estimates of asset
retirement obligations at closed sites, gains and losses on the
disposal of assets, self insurance losses, multi-year donations and
integration costs).
The Company believes that these generally accepted industry
measures are useful 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. EBITDA and
adjusted EBITDA are intended to provide investors with information
about the Company's continuing cash generating capability from its
core mining business, excluding the above adjustments, which are
not reflective of operational performance. Management uses these
measures too 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.
Free cash flow is calculated by deducting additions to property,
plant and mine development from the cash provided by operating
activities line item as recorded in the condensed interim
consolidated statements of cash flows. Free cash flow before
changes in non-cash components of working capital is calculated by
excluding the effect of changes in non-cash components of working
capital from free cash flow. The Company believes that these
generally accepted industry measures are useful in that they allow
for the evaluation of the Company's ability to repay creditors and
return cash to shareholders without relying on external sources of
funding. Free cash flow and free cash flow before changes in
non-cash components of working capital also provide investors with
information about the Company's financial position and its ability
to generate cash to fund operational and capital requirements as
well as return cash to shareholders. Management uses these measures
in conjunction with other data prepared in accordance with IFRS,
and believes it is helpful to investors so they can, understand and
monitor the operating performance of the Company.
Operating margin is calculated by deducting production costs
from revenue from mining operations. In order to reconcile
operating margin to net income as recorded in the consolidated
financial statements, the Company adds the following items to the
operating margin: income and mining taxes expense; other expenses
(income); care and maintenance expenses; foreign currency
translation (gain) loss; environmental remediation costs; gain
(loss) on derivative financial instruments; finance costs; general
and administrative expenses; amortization of property, plant and
mine development; exploration and corporate development expenses;
revaluation gain and impairment losses (reversals). The Company
believes that operating margin is a useful measure that represents
the operating performance of its individual mines associated with
the ongoing production and sale of gold and by-product metals
without allocating Company-wide overhead, including exploration and
corporate development expenses, amortization of property, plant and
mine development, general and administrative expenses, finance
costs, gain and losses on derivative financial instruments,
environmental remediation costs, foreign currency translation gains
and losses, other expenses and income and mining tax expenses.
Management uses this measure internally to plan and forecast future
operating results. This measure is intended to provide investors
with additional information about the Company's underlying
operating results and should be evaluated in conjunction with other
data prepared in accordance with IFRS.
Capital expenditures are classified into sustaining capital
expenditures and development capital expenditures. Sustaining
capital expenditures are expenditures incurred during the
production phase to sustain and maintain the existing assets so
they can achieve constant expected levels of production from which
the Company will derive economic benefits. Sustaining capital
expenditures include expenditure for assets to retain their
existing productive capacity as well as to enhance performance and
reliability of the operations. Development capital expenditures
represents the spending at new projects and/or expenditure at
existing operations that is undertaken with the intention to
increase production levels or mine life above the current plans.
Management uses these measures in the capital allocation process
and to assess the effectiveness of its investments. Management
believes these measures are useful so investors can assess the
purpose and effectiveness of the capital expenditures split between
sustaining and development in each reporting period. The
classification between sustaining and development capital
expenditures does not have a standardized definition in accordance
with IFRS and other companies may classify expenditures in a
different manner.
This news release also contains information as to estimated
future total cash costs per ounce, AISC per ounce and minesite
costs per tonne. The estimates are based upon the total cash costs
per ounce, AISC per ounce and minesite costs per tonne that the
Company expects to incur to mine gold at its mines and projects
and, consistent with the reconciliation of these actual costs
referred to above, do not include production costs attributable to
accretion expense and other asset retirement costs, which will vary
over time as each project is developed and mined. It is therefore
not practicable to reconcile these forward-looking non-GAAP
financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at
October 25, 2023. Certain statements
contained in this news release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" under the provisions of Canadian provincial securities
laws and are referred to herein as "forward-looking statements".
All statements, other than statements of historical fact, that
address circumstances, events, activities or developments that
could, or may or will occur are forward looking statements. When
used in this news release, the words "achieve", "aim",
"anticipate", "could", "estimate", "expect", "forecast", "future",
"plan", "possible", "potential", "schedule", "target", "tracking",
"will", and similar expressions are intended to identify
forward-looking statements. Such statements include, without
limitation: the Company's forward-looking guidance, including metal
production, estimated ore grades, statements regarding or relating
to recovery rates, project timelines, drilling targets or results,
life of mine estimates, total cash costs per ounce, AISC per ounce,
minesite costs per tonne, other expenses and cash flows; the
potential for additional gold production at Kittila, the AK deposit
and Upper Beaver 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 Company's plans
at the Hope Bay project; statements about the Company's plans at
the Wasamac project; statements concerning other expansion
projects, recovery rates, mill throughput, optimization and
projected exploration, including costs and other estimates upon
which such projections are based; timing and amounts of capital
expenditures, other expenditures and other cash needs, and
expectations as to the funding thereof; estimates of future mineral
reserves, mineral resources, mineral production and sales; the
projected development of certain ore deposits, including estimates
of exploration, development and production and other capital costs
and estimates of the timing of such exploration, development and
production or decisions with respect to such exploration,
development and production; anticipated cost inflation and its
effect on the Company's costs and results; estimates of mineral
reserves and mineral resources and the effect of drill results on
future mineral reserves and mineral resources; the Company's
ability to obtain the necessary permits and authorizations in
connection with its proposed or current exploration, development
and mining operations and the anticipated timing thereof;
operations at and expansion of the Kittila mine following the
decision of the Finish courts and administrative bodies; future
exploration; the anticipated timing of events with respect to the
Company's mine sites; the sufficiency of the Company's cash
resources; the Company's plans with respect to hedging and the
effectiveness of its hedging strategies; future activity with
respect to the Company's unsecured revolving bank credit facility,
the term loan facility and other indebtness; future dividend
amounts and payment dates; and anticipated trends with respect to
the Company's operations, exploration and the funding thereof. Such
statements reflect the Company's views as at the date of this news
release and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable
by Agnico Eagle as of the date of such statements, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. The material factors and
assumptions used in the preparation of the forward looking
statements contained herein, which may prove to be incorrect,
include, but are not limited to, the assumptions set forth herein
and in management's discussion and analysis ("MD&A") and the
Company's Annual Information Form ("AIF") for the year ended
December 31, 2022 filed with Canadian
securities regulators and that are included in its Annual Report on
Form 40-F for the year ended December 31,
2022 ("Form 40-F") filed with the 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; the ability to realize
synergies from the Yamana Transaction and cost savings at the
times, and to the extent, anticipated; 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 First Nations 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 ability to realize the anticipated
benefits of the Yamana Transaction; the ability to realize the
anticipated benefits of the San Nicolás transaction; the current
rising 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.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101").
Effective February 25, 2019, the
SEC's disclosure requirements and policies for mining properties
were amended to more closely align with current industry and global
regulatory practices and standards, including NI 43-101. However,
Canadian issuers that report in the
United States using the Multijurisdictional Disclosure
System ("MJDS"), such as the Company, may still use NI 43-101
rather than the SEC disclosure requirements when using the SEC's
MJDS registration statement and annual report forms. Accordingly,
mineral reserve and mineral resource information contained in this
news release may not be comparable to similar information disclosed
by U.S. companies.
Investors are cautioned that while the SEC now recognizes
"measured mineral resources", "indicated mineral resources" and
"inferred mineral resources", investors should not assume that any
part or all of the mineral deposits in these categories will ever
be converted into a higher category of mineral resources or into
mineral reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Under Canadian
regulations, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in
limited circumstances. Investors are cautioned not to assume
that any "measured mineral resources", "indicated mineral
resources", or "inferred mineral resources" that the Company
reports in this news release are or will be economically or legally
mineable.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all of an
inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in this
news release are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company does not
include equivalent gold ounces for by-product metals contained in
mineral reserves in its calculation of contained ounces and mineral
reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news
release relating to Nunavut,
Quebec and Finland operations has been approved by
Dominique Girard, Eng., Executive Vice President & Chief
Operating Officer – Nunavut,
Quebec & Europe; relating to Ontario, Australia and Mexico operations has been approved by
Natasha Vaz, Executive Vice
President & Chief Operating Officer – Ontario, Australia & Mexico; relating to exploration has been
approved by Guy Gosselin, Eng. and P.Geo., Executive Vice
President, Exploration; and relating to mineral reserves and
mineral resources has been approved by Dyane Duquette, P.Geo., Vice President, Mineral
Resources Management, each of whom is a "Qualified Person" for the
purposes of NI 43-101.
Additional Information
Additional information about each of the Company's material
mineral projects as at September 30,
2023, including information regarding data verification, key
assumptions, parameters and methods used to estimate mineral
reserves and mineral resources and the risks that could materially
affect the development of the mineral reserves and mineral
resources required by sections 3.2 and 3.3 and paragraphs 3.4(a),
(c) and (d) of NI 43-101 can be found in the Company's AIF and
MD&A filed on SEDAR each of which forms a part of the Company's
Form 40-F filed with the SEC on EDGAR and in the following
technical reports filed on SEDAR in respect of the Company's
material mineral properties: NI 43-101 Technical Report of the
LaRonde complex in Québec, Canada (March 24, 2023); NI 43-101
Technical Report Canadian Malartic Mine, Québec, Canada (March 25,
2021); Technical Report on the Mineral Resources and Mineral
Reserves at Meadowbank Gold complex including the Amaruq Satellite
Mine Development, Nunavut, Canada as at December 31, 2017 (February
14, 2018); the Updated Technical Report on the Meliadine Gold
Project, Nunavut, Canada (February 11, 2015); the Detour Lake
Operation, Ontario, Canada NI 43-101 Technical Report as at July
26, 2021 (October 15, 2021); and the Updated NI 43-101 Technical
Report Fosterville Gold Mine in the State of Victoria, Australia as
at December 31, 2018 (April 1, 2019).
APPENDIX
Recent selected exploration drill results from
Meliadine, Hope Bay, Fosterville
and Kittila
Drill hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint below
surface (metres)
|
Estimated
true width (metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
ML425-9563-D21
|
Meliadine / Tiriganiaq
/
Lode 1000
|
341.0
|
344.5
|
757
|
3.1
|
11.4
|
11.4
|
HBM23-109
|
HB / Madrid / Patch
7
|
734.0
|
740.5
|
609
|
4.6
|
15.9
|
15.9
|
UDH4761
|
Fosterville /
Cardinal
|
386.8
|
398.9
|
1,828
|
10.0
|
10.8
|
10.8
|
SUU23004
|
Kittila / East
Zone
|
221.1
|
231.6
|
208
|
9.9
|
11.8
|
11.8
|
including
|
|
221.1
|
226.2
|
206
|
4.8
|
18.2
|
18.2
|
*Results from the
Meliadine mine use a capping factor of 250 g/t gold for Tiriganiaq
Lode 1000; Results from Madrid-area deposits at Hope Bay use a
capping factor of 50 g/t gold. Results from Fosterville and Kittila
are uncapped.
|
EXPLORATION DRILL COLLAR COORDINATES
Drill hole
|
UTM East*
|
UTM North*
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
Meliadine
|
ML425-9563-D21
|
539563
|
6988914
|
-406
|
221
|
-64
|
402
|
Hope Bay
|
HBM23-109
|
434896
|
7547948
|
33
|
65
|
-72
|
987
|
Fosterville
|
UDH4761
|
1,544
|
5,071
|
3,710
|
102
|
-75
|
465
|
Kittila
|
SUU23004
|
2558935
|
7536649
|
207
|
267
|
-60
|
330
|
*Coordinate Systems:
NAD 1983 UTM Zone 14N for Meliadine; NAD 1983 UTM Zone 13N for Hope
Bay; Mine grid including elevation for Fosterville, which is
located in MGA94 Zone 55; Finnish Coordinate System KKJ Zone 2 for
Kittila.
|
APPENDIX – FINANCIAL INFORMATION
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022(i)
|
|
2023
|
|
2022(i)
|
|
|
|
|
|
|
|
|
Net income - key
line items:
|
|
|
|
|
|
|
|
Revenue from mine
operations:
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
126,899
|
|
161,091
|
|
362,984
|
|
435,322
|
LaRonde Zone 5
mine
|
33,290
|
|
38,203
|
|
99,370
|
|
96,591
|
Canadian Malartic
complex(iii)
|
320,044
|
|
131,421
|
|
793,989
|
|
428,526
|
Goldex mine
|
68,467
|
|
58,672
|
|
209,802
|
|
190,193
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
mine
|
288,156
|
|
284,570
|
|
911,819
|
|
884,863
|
Macassa
mine
|
85,407
|
|
87,827
|
|
316,145
|
|
252,075
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
mine
|
180,344
|
|
155,299
|
|
507,057
|
|
501,383
|
Meadowbank
complex
|
210,843
|
|
206,997
|
|
616,512
|
|
473,927
|
Hope Bay
project
|
—
|
|
—
|
|
—
|
|
144
|
Australia
|
|
|
|
|
|
|
|
Fosterville
mine
|
116,916
|
|
137,671
|
|
454,291
|
|
506,273
|
Europe
|
|
|
|
|
|
|
|
Kittila
mine
|
113,729
|
|
110,384
|
|
332,616
|
|
326,872
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
54,390
|
|
45,543
|
|
156,227
|
|
148,870
|
Creston Mascota
mine
|
—
|
|
1,131
|
|
—
|
|
4,049
|
La India
mine
|
43,926
|
|
30,888
|
|
109,457
|
|
107,355
|
Revenues from mining
operations
|
$
1,642,411
|
|
$
1,449,697
|
|
$
4,870,269
|
|
$
4,356,443
|
Production
costs
|
759,411
|
|
657,073
|
|
2,155,808
|
|
1,976,444
|
Total operating
margin(ii)
|
883,000
|
|
792,624
|
|
2,714,461
|
|
2,379,999
|
Amortization of
property, plant and mine development
|
414,994
|
|
283,486
|
|
1,100,215
|
|
809,021
|
Revaluation
gain(iv)
|
—
|
|
—
|
|
(1,543,414)
|
|
—
|
Exploration, corporate
and other
|
196,694
|
|
293,149
|
|
474,509
|
|
718,467
|
Income before income
and mining taxes
|
271,312
|
|
215,989
|
|
2,683,151
|
|
852,511
|
Income and mining taxes
expense
|
92,706
|
|
149,310
|
|
360,833
|
|
376,367
|
Net income for the
period
|
$ 178,606
|
|
$
66,679
|
|
$
2,322,318
|
|
$ 476,144
|
Net income per
share — basic
|
$
0.36
|
|
$
0.15
|
|
$
4.78
|
|
$
1.10
|
Net income per
share — diluted
|
$
0.36
|
|
$
0.15
|
|
$
4.75
|
|
$
1.10
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$ 502,088
|
|
$ 575,438
|
|
$
1,873,701
|
|
$
1,716,136
|
Cash used in investing
activities
|
$
(435,666)
|
|
$
(439,296)
|
|
$
(2,284,613)
|
|
$
(297,773)
|
Cash (used in) provided
by financing activities
|
$
(144,239)
|
|
$
(317,985)
|
|
$ 109,843
|
|
$
(780,150)
|
|
|
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
1,928
|
|
$
1,726
|
|
$
1,933
|
|
$
1,821
|
Silver
(per ounce)
|
$
23.55
|
|
$
18.67
|
|
$
23.66
|
|
$
21.68
|
Zinc
(per tonne)
|
$
2,360
|
|
$
3,435
|
|
$
2,746
|
|
$
3,623
|
Copper
(per tonne)
|
$
8,223
|
|
$
5,674
|
|
$
8,740
|
|
$
8,438
|
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Payable
production(v):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
49,303
|
|
63,573
|
|
167,471
|
|
221,858
|
LaRonde Zone 5
mine
|
15,193
|
|
19,048
|
|
53,412
|
|
54,310
|
Canadian Malartic
complex(iii)
|
177,243
|
|
75,262
|
|
435,683
|
|
242,957
|
Goldex mine
|
35,880
|
|
33,889
|
|
107,619
|
|
105,211
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
mine
|
152,762
|
|
175,487
|
|
483,971
|
|
471,445
|
Macassa
mine
|
46,792
|
|
51,775
|
|
167,951
|
|
137,525
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
mine
|
89,707
|
|
91,201
|
|
267,856
|
|
269,477
|
Meadowbank
complex
|
116,555
|
|
122,994
|
|
322,440
|
|
279,457
|
Australia
|
|
|
|
|
|
|
|
Fosterville
mine
|
59,790
|
|
81,801
|
|
228,161
|
|
249,693
|
Europe
|
|
|
|
|
|
|
|
Kittila
mine
|
59,408
|
|
61,901
|
|
173,230
|
|
172,223
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
25,386
|
|
23,041
|
|
71,679
|
|
71,231
|
Creston Mascota
mine
|
141
|
|
538
|
|
550
|
|
2,179
|
La India
mine
|
22,269
|
|
16,285
|
|
56,423
|
|
58,003
|
Total gold
(ounces):
|
850,429
|
|
816,795
|
|
2,536,446
|
|
2,335,569
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces)
|
589
|
|
553
|
|
1,753
|
|
1,750
|
Zinc
(tonnes)
|
1,420
|
|
2,108
|
|
6,318
|
|
5,745
|
Copper
(tonnes)
|
659
|
|
653
|
|
1,935
|
|
2,200
|
|
|
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Payable metal
sold(vi):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
62,413
|
|
89,667
|
|
172,495
|
|
221,930
|
LaRonde Zone 5
mine
|
17,748
|
|
22,304
|
|
52,132
|
|
53,437
|
Canadian Malartic
complex(iii)
|
164,974
|
|
75,067
|
|
405,040
|
|
232,495
|
Goldex mine
|
35,517
|
|
34,019
|
|
108,548
|
|
104,584
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
mine
|
149,747
|
|
164,300
|
|
473,322
|
|
484,654
|
Macassa
mine
|
44,400
|
|
50,739
|
|
164,430
|
|
138,319
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
mine
|
93,426
|
|
89,652
|
|
262,165
|
|
274,778
|
Meadowbank
complex
|
108,579
|
|
119,531
|
|
317,584
|
|
262,023
|
Hope Bay
mine
|
—
|
|
—
|
|
—
|
|
98
|
Australia
|
|
|
|
|
|
|
|
Fosterville
mine
|
60,750
|
|
79,458
|
|
235,250
|
|
274,585
|
Europe
|
|
|
|
|
|
|
|
Kittila
mine
|
58,540
|
|
63,813
|
|
171,060
|
|
179,806
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
24,543
|
|
23,436
|
|
71,134
|
|
72,953
|
Creston Mascota
mine
|
—
|
|
650
|
|
—
|
|
2,104
|
La India
mine
|
22,460
|
|
17,610
|
|
56,343
|
|
57,925
|
Total gold
(ounces):
|
843,097
|
|
830,246
|
|
2,489,503
|
|
2,359,691
|
|
|
|
|
|
|
|
|
Silver (thousands of
ounces)
|
571
|
|
598
|
|
1,720
|
|
1,769
|
Zinc
(tonnes)
|
2,108
|
|
2,099
|
|
6,982
|
|
4,812
|
Copper
(tonnes)
|
657
|
|
647
|
|
1,938
|
|
2,196
|
|
|
|
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Total cash costs per
ounce of gold produced — co-product
basis(vii):
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
1,111
|
|
$
963
|
|
$
1,097
|
|
$
805
|
LaRonde Zone 5
mine
|
1,297
|
|
974
|
|
1,220
|
|
979
|
Canadian Malartic
complex(iii)
|
814
|
|
835
|
|
800
|
|
803
|
Goldex mine
|
822
|
|
805
|
|
802
|
|
765
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
mine
|
757
|
|
695
|
|
755
|
|
657
|
Macassa
mine
|
843
|
|
691
|
|
722
|
|
661
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
mine
|
972
|
|
779
|
|
977
|
|
869
|
Meadowbank
complex
|
1,229
|
|
935
|
|
1,180
|
|
1,145
|
Australia
|
|
|
|
|
|
|
|
Fosterville
mine
|
497
|
|
436
|
|
438
|
|
366
|
Europe
|
|
|
|
|
|
|
|
Kittila
mine
|
931
|
|
844
|
|
877
|
|
891
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,606
|
|
1,520
|
|
1,512
|
|
1,479
|
Creston Mascota
mine
|
—
|
|
1,167
|
|
—
|
|
803
|
La India
mine
|
1,174
|
|
1,211
|
|
1,292
|
|
990
|
Weighted average total
cash costs per ounce of gold produced
|
$
924
|
|
$
804
|
|
$
885
|
|
$
801
|
|
|
|
|
|
|
|
|
Total cash costs per
ounce of gold produced — by-product
basis(vii):
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
$
875
|
|
$
773
|
|
$
850
|
|
$
590
|
LaRonde Zone 5
mine
|
1,287
|
|
973
|
|
1,207
|
|
976
|
Canadian Malartic
complex(iii)
|
805
|
|
820
|
|
789
|
|
787
|
Goldex mine
|
822
|
|
804
|
|
802
|
|
765
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
mine
|
755
|
|
691
|
|
752
|
|
650
|
Macassa
mine
|
841
|
|
689
|
|
719
|
|
659
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
mine
|
971
|
|
777
|
|
975
|
|
866
|
Meadowbank
complex
|
1,225
|
|
930
|
|
1,173
|
|
1,140
|
Australia
|
|
|
|
|
|
|
|
Fosterville
mine
|
495
|
|
435
|
|
437
|
|
365
|
Europe
|
|
|
|
|
|
|
|
Kittila
mine
|
930
|
|
843
|
|
875
|
|
889
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
1,310
|
|
1,295
|
|
1,236
|
|
1,247
|
Creston Mascota
mine
|
—
|
|
1,188
|
|
—
|
|
744
|
La India
mine
|
1,156
|
|
1,196
|
|
1,272
|
|
966
|
Weighted average total
cash costs per ounce of gold produced
|
$
898
|
|
$
779
|
|
$
857
|
|
$
769
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Merger
|
(ii) Operating margin
is not a recognized measure under IFRS and this data may not be
comparable to data reported by other gold producers
|
(iii) 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
|
(iv) Revaluation gain
on the 50% interest the Company owned in Canadian Malartic complex
prior to the Yamana Transaction
|
(v) Payable production
(a non-GAAP non-financial performance measure) is the quantity
of mineral produced during a period contained in products that are
or will be sold by the Company, whether such products are sold
during the period or held as inventories at the end of
the period
|
(vi) The Canadian
Malartic complex's payable metal sold excludes the 5.0% net smelter
return royalty held by Osisko Gold Royalties Ltd. The Detour
Lake mine's payable metal sold excludes the 2% net smelter royalty
held by Franco-Nevada Corporation. The Macassa mine's payable metal
sold excludes the 1.5% net smelter royalty held by Franco-Nevada
Corporation
|
(vii) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. See Reconciliation of Non-GAAP Financial
Performance Measures — Total Cash Costs per Ounce of Gold Produced
and Minesite Costs per Tonne andNote Regarding Certain
Measures of Performance for more information on the Company's
calculation and use of total cash cost per ounce of gold
produced
|
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED BALANCE SHEETS
|
(thousands of United
States dollars, except share amounts, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
As at
|
|
As at
|
|
September 30,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
355,491
|
|
$
658,625
|
Trade
receivables
|
7,569
|
|
8,579
|
Inventories
|
1,403,677
|
|
1,209,075
|
Income taxes
recoverable
|
47,067
|
|
35,054
|
Fair value of
derivative financial instruments
|
7,326
|
|
8,774
|
Other current
assets
|
371,039
|
|
259,952
|
Total current
assets
|
2,192,169
|
|
2,180,059
|
Non-current
assets:
|
|
|
|
Goodwill
|
4,576,454
|
|
2,044,123
|
Property, plant and
mine development
|
21,426,291
|
|
18,459,400
|
Investments
|
284,689
|
|
332,742
|
Deferred income and
mining tax asset
|
13,517
|
|
11,574
|
Other
assets
|
732,561
|
|
466,910
|
Total assets
|
$
29,225,681
|
|
$
23,494,808
|
|
|
|
|
LIABILITIES
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
756,067
|
|
$
672,503
|
Share based
liabilities
|
11,765
|
|
15,148
|
Interest
payable
|
19,405
|
|
16,496
|
Income taxes
payable
|
86,261
|
|
4,187
|
Current portion of
long-term debt
|
100,000
|
|
100,000
|
Reclamation
provision
|
39,022
|
|
23,508
|
Lease
obligations
|
48,762
|
|
36,466
|
Fair value of
derivative financial instruments
|
41,778
|
|
78,114
|
Total current
liabilities
|
1,103,060
|
|
946,422
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,842,553
|
|
1,242,070
|
Reclamation
provision
|
902,939
|
|
878,328
|
Lease
obligations
|
116,534
|
|
114,876
|
Share based
liabilities
|
9,997
|
|
17,277
|
Deferred income and
mining tax liabilities
|
4,952,007
|
|
3,981,875
|
Other
liabilities
|
365,325
|
|
72,615
|
Total
liabilities
|
9,292,415
|
|
7,253,463
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares:
|
|
|
|
Outstanding — 496,523,603 common shares issued, less 460,079
shares held in trust
|
18,279,698
|
|
16,251,221
|
Stock
options
|
202,691
|
|
197,430
|
Contributed
surplus
|
22,074
|
|
23,280
|
Retained earnings
(deficit)
|
1,539,065
|
|
(201,580)
|
Other
reserves
|
(110,262)
|
|
(29,006)
|
Total equity
|
19,933,266
|
|
16,241,345
|
Total liabilities and
equity
|
$
29,225,681
|
|
$
23,494,808
|
|
|
|
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF INCOME
|
(thousands of
United States dollars, except per share amounts, IFRS
basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Restated(i)
|
|
|
|
Restated(i)
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Revenues from mining
operations
|
$
1,642,411
|
|
$
1,449,697
|
|
$
4,870,269
|
|
$
4,356,443
|
|
|
|
|
|
|
|
|
COSTS, INCOME AND
EXPENSES
|
|
|
|
|
|
|
|
Production(ii)
|
759,411
|
|
657,073
|
|
2,155,808
|
|
1,976,444
|
Exploration and
corporate development
|
61,594
|
|
64,001
|
|
169,784
|
|
200,195
|
Amortization of
property, plant and mine development
|
414,994
|
|
283,486
|
|
1,100,215
|
|
809,021
|
General and
administrative
|
38,930
|
|
49,462
|
|
134,450
|
|
166,279
|
Finance
costs
|
35,704
|
|
19,278
|
|
94,989
|
|
62,892
|
Loss on derivative
financial instruments
|
34,010
|
|
162,374
|
|
1,038
|
|
174,463
|
Foreign currency
translation gain
|
(6,492)
|
|
(15,479)
|
|
(2,258)
|
|
(27,761)
|
Care and
maintenance
|
12,361
|
|
10,538
|
|
33,017
|
|
30,251
|
Revaluation
gain(iii)
|
—
|
|
—
|
|
(1,543,414)
|
|
—
|
Other
expenses
|
20,587
|
|
2,975
|
|
43,489
|
|
112,148
|
Income before income
and mining taxes
|
271,312
|
|
215,989
|
|
2,683,151
|
|
852,511
|
Income and mining taxes
expense
|
92,706
|
|
149,310
|
|
360,833
|
|
376,367
|
Net income for the
period
|
$
178,606
|
|
$
66,679
|
|
$
2,322,318
|
|
$ 476,144
|
|
|
|
|
|
|
|
|
Net income per share -
basic
|
$
0.36
|
|
$
0.15
|
|
$
4.78
|
|
$
1.10
|
Net income per share -
diluted
|
$
0.36
|
|
$
0.15
|
|
$
4.75
|
|
$
1.10
|
Adjusted net income per
share - basic(iv)
|
$
0.44
|
|
$
0.49
|
|
$
1.67
|
|
$
1.92
|
Adjusted net income per
share - diluted(iv)
|
$
0.44
|
|
$
0.49
|
|
$
1.66
|
|
$
1.92
|
|
|
|
|
|
|
|
|
Weighted average number
of common shares outstanding (in thousands):
|
|
|
|
|
|
|
|
Basic
|
495,286
|
|
455,157
|
|
486,131
|
|
431,718
|
Diluted
|
496,404
|
|
456,274
|
|
487,442
|
|
433,087
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Certain
previously reported line items have been restated to reflect the
final purchase price allocation of the Merger.
|
(ii)
Exclusive of amortization, which is shown separately.
|
(iii)
Revaluation gain on the 50% interest previously owned in the
Canadian Malartic complex.
|
(iv) Refer
to Reconciliation of Non-GAAP Financial Performance Measures
in this Press Release for calculations supporting adjusted net
income.
|
AGNICO EAGLE MINES
LIMITED
|
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(thousands of
United States dollars, IFRS basis)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Restated(i)
|
|
|
|
Restated(i)
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
Net income for the
period
|
$
178,606
|
|
$
66,679
|
|
$ 2,322,318
|
|
$
476,144
|
Add (deduct) adjusting
items:
|
|
|
|
|
|
|
|
Amortization of
property, plant and mine development
|
414,994
|
|
283,486
|
|
1,100,215
|
|
809,021
|
Revaluation
gain(ii)
|
—
|
|
—
|
|
(1,543,414)
|
|
—
|
Deferred income and
mining taxes
|
27,417
|
|
52,331
|
|
70,989
|
|
134,942
|
Unrealized loss (gain)
on currency and commodity derivatives
|
31,088
|
|
159,858
|
|
(34,888)
|
|
169,372
|
Unrealized loss (gain)
on warrants
|
6,802
|
|
(5,688)
|
|
9,098
|
|
14,494
|
Stock-based
compensation
|
11,939
|
|
13,805
|
|
38,466
|
|
43,012
|
Foreign currency
translation gain
|
(6,492)
|
|
(15,479)
|
|
(2,258)
|
|
(27,761)
|
Other
|
9,380
|
|
5,670
|
|
20,030
|
|
21,541
|
Adjustment for
settlement of reclamation provision
|
(5,078)
|
|
(2,298)
|
|
(10,077)
|
|
(10,434)
|
Changes in non-cash
working capital balances:
|
|
|
|
|
|
|
|
Trade
receivables
|
2,572
|
|
(24,295)
|
|
8,037
|
|
14,540
|
Income
taxes
|
(7,425)
|
|
47,834
|
|
81,980
|
|
4,503
|
Inventories
|
(118,251)
|
|
(159,300)
|
|
(144,998)
|
|
8,742
|
Other current
assets
|
(6,099)
|
|
73,459
|
|
(94,984)
|
|
(44,406)
|
Accounts payable and
accrued liabilities
|
(49,432)
|
|
72,905
|
|
51,427
|
|
97,950
|
Interest
payable
|
12,067
|
|
6,471
|
|
1,760
|
|
4,476
|
Cash provided by
operating activities
|
502,088
|
|
575,438
|
|
1,873,701
|
|
1,716,136
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
Additions to property,
plant and mine development
|
(419,832)
|
|
(435,659)
|
|
(1,228,387)
|
|
(1,137,406)
|
Yamana transaction, net
of cash and cash equivalents
|
—
|
|
—
|
|
(1,000,617)
|
|
—
|
Contributions for
acquisition of mineral assets
|
(10,950)
|
|
—
|
|
(10,950)
|
|
—
|
Cash and cash
equivalents acquired in Kirkland acquisition
|
—
|
|
—
|
|
—
|
|
838,732
|
Purchases of equity
securities and other investments
|
(7,962)
|
|
(4,936)
|
|
(52,126)
|
|
(36,790)
|
Proceeds from loan
repayment
|
—
|
|
—
|
|
—
|
|
40,000
|
Other investing
activities
|
3,078
|
|
1,299
|
|
7,467
|
|
(2,309)
|
Cash used in investing
activities
|
(435,666)
|
|
(439,296)
|
|
(2,284,613)
|
|
(297,773)
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
Proceeds from Credit
Facility
|
100,000
|
|
—
|
|
1,100,000
|
|
100,000
|
Repayment of Credit
Facility
|
(100,000)
|
|
—
|
|
(1,000,000)
|
|
(100,000)
|
Proceeds from Term Loan
Facility, net of financing costs
|
—
|
|
—
|
|
598,958
|
|
—
|
Repayment of Senior
Notes
|
—
|
|
(100,000)
|
|
(100,000)
|
|
(225,000)
|
Repayment of lease
obligations
|
(13,465)
|
|
(8,239)
|
|
(35,633)
|
|
(25,025)
|
Disbursements to
associates
|
21,899
|
|
—
|
|
—
|
|
—
|
Dividends
paid
|
(161,259)
|
|
(160,121)
|
|
(482,680)
|
|
(464,704)
|
Repurchase of common
shares
|
—
|
|
(54,809)
|
|
(16,350)
|
|
(104,956)
|
Proceeds on exercise of
stock options
|
471
|
|
63
|
|
23,523
|
|
24,008
|
Common shares
issued
|
8,115
|
|
5,121
|
|
22,025
|
|
15,527
|
Cash (used in) provided
by financing activities
|
(144,239)
|
|
(317,985)
|
|
109,843
|
|
(780,150)
|
Effect of exchange
rate changes on cash and cash equivalents
|
782
|
|
(3,254)
|
|
(2,065)
|
|
(2,241)
|
Net (decrease)
increase in cash and cash equivalents during the
period
|
(77,035)
|
|
(185,097)
|
|
(303,134)
|
|
635,972
|
Cash and cash
equivalents, beginning of period
|
432,526
|
|
1,006,855
|
|
658,625
|
|
185,786
|
Cash and cash
equivalents, end of period
|
$
355,491
|
|
$
821,758
|
|
$
355,491
|
|
$
821,758
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH
FLOW INFORMATION
|
|
|
|
|
|
|
|
Interest
paid
|
$
16,621
|
|
$
6,037
|
|
$
73,109
|
|
$
47,459
|
Income and mining taxes
paid
|
$
67,904
|
|
$
50,139
|
|
$
207,669
|
|
$
238,217
|
|
|
|
|
|
|
|
|
Notes:
|
(i)
Certain previously reported line items have been restated to
reflect the final purchase price allocation of the
Merger.
|
(ii)
Revaluation gain on the 50% interest previously owned in the
Canadian Malartic complex.
|
AGNICO EAGLE MINES
LIMITED
|
RECONCILIATION OF
NON-GAAP FINANCIAL PERFORMANCE MEASURES
|
(thousands of
United States dollars, except where noted)
|
|
Refer to Note
Regarding Certain Measures of Performance in this news release
for details on the composition, usefulness and other information
regarding the Company's use of the non-GAAP measures total cash
costs per ounce of gold produced and minesite costs per
tonne
|
The following tables
set out a reconciliation of total cash costs per ounce of gold
produced (on both a by-product basis and co-product basis) and
minesite costs per tonne to production costs, exclusive of
amortization, as presented in the condensed interim consolidated
statements of income in accordance with IFRS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production
Costs by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
(thousands of United
States dollars)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Quebec
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde mine
|
|
$
66,477
|
|
$
83,911
|
|
$
170,153
|
|
$
163,701
|
LaRonde Zone 5
mine
|
|
18,715
|
|
18,066
|
|
62,702
|
|
51,932
|
LaRonde
complex
|
|
85,192
|
|
101,977
|
|
232,855
|
|
215,633
|
Canadian Malartic
complex(i)
|
|
125,455
|
|
58,516
|
|
326,936
|
|
171,858
|
Goldex mine
|
|
28,805
|
|
26,297
|
|
84,800
|
|
79,044
|
Ontario
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
mine
|
|
106,396
|
|
113,736
|
|
333,214
|
|
371,130
|
Macassa mine
|
|
35,864
|
|
33,533
|
|
112,368
|
|
98,848
|
Nunavut
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
|
|
89,210
|
|
71,830
|
|
249,221
|
|
236,895
|
Meadowbank
complex
|
|
133,919
|
|
109,905
|
|
381,411
|
|
313,989
|
Australia
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
mine
|
|
27,539
|
|
34,214
|
|
99,969
|
|
170,518
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila mine
|
|
58,569
|
|
51,622
|
|
155,200
|
|
154,388
|
Mexico
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
|
|
40,147
|
|
34,513
|
|
107,778
|
|
106,922
|
Creston Mascota
mine
|
|
—
|
|
644
|
|
—
|
|
1,743
|
La India
mine
|
|
28,315
|
|
20,286
|
|
72,056
|
|
55,476
|
Production costs per
the condensed interim consolidated statements of income
|
|
$
759,411
|
|
$
657,073
|
|
$
2,155,808
|
|
$
1,976,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce of Gold Produced by
Mine and Reconciliation of Production Costs to Minesite Costs
perTonne by Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
49,303
|
|
|
63,573
|
|
|
167,471
|
|
|
221,858
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
66,477
|
$ 1,348
|
|
$
83,911
|
$ 1,320
|
|
$
170,153
|
$ 1,016
|
|
$
163,701
|
$
738
|
Inventory
adjustments(ii)
|
|
(16,200)
|
(328)
|
|
(28,982)
|
(452)
|
|
(2,666)
|
(16)
|
|
2,691
|
12
|
Realized gains and
losses on hedges of production costs
|
|
317
|
6
|
|
2,052
|
32
|
|
2,165
|
13
|
|
1,440
|
6
|
Other
adjustments(v)
|
|
4,178
|
85
|
|
3,986
|
63
|
|
14,081
|
84
|
|
10,827
|
49
|
Cash operating costs
(co-product basis)
|
|
$
54,772
|
$ 1,111
|
|
$
60,967
|
$
963
|
|
$
183,733
|
$ 1,097
|
|
$
178,659
|
$
805
|
By-product metal
revenues
|
|
(11,627)
|
(236)
|
|
(11,916)
|
(190)
|
|
(41,316)
|
(247)
|
|
(47,777)
|
(215)
|
Cash operating costs
(by-product basis)
|
|
$
43,145
|
$
875
|
|
$
49,051
|
$
773
|
|
$
142,417
|
$
850
|
|
$
130,882
|
$
590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
365
|
|
|
416
|
|
|
1,101
|
|
|
1,293
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
66,477
|
$
182
|
|
$
83,911
|
$
202
|
|
$
170,153
|
$
155
|
|
$
163,701
|
$
127
|
Production costs
(C$)
|
|
C$
89,228
|
C$ 244
|
|
C$
109,561
|
C$ 264
|
|
C$
228,662
|
C$ 208
|
|
C$
210,893
|
C$ 163
|
Inventory adjustments
(C$)(ii)
|
|
(19,881)
|
(54)
|
|
(37,841)
|
(91)
|
|
(1,455)
|
(1)
|
|
372
|
—
|
Other adjustments
(C$)(v)
|
|
(2,752)
|
(8)
|
|
(2,328)
|
(6)
|
|
(9,195)
|
(9)
|
|
(9,205)
|
(7)
|
Minesite operating
costs (C$)
|
|
C$
66,595
|
C$ 182
|
|
C$
69,392
|
C$ 167
|
|
C$
218,012
|
C$ 198
|
|
C$
202,060
|
C$ 156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
15,193
|
|
|
19,048
|
|
|
53,412
|
|
|
54,310
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
18,715
|
$ 1,232
|
|
$
18,066
|
$
948
|
|
$
62,702
|
$ 1,174
|
|
$
51,932
|
$
956
|
Inventory
adjustments(ii)
|
|
134
|
9
|
|
(16)
|
(1)
|
|
(127)
|
(2)
|
|
799
|
15
|
Realized gains and
losses on hedges of production costs
|
|
106
|
7
|
|
478
|
25
|
|
722
|
13
|
|
335
|
6
|
Other
adjustments(v)
|
|
753
|
49
|
|
33
|
2
|
|
1,864
|
35
|
|
82
|
2
|
Cash operating costs
(co-product basis)
|
|
$
19,708
|
$ 1,297
|
|
$
18,561
|
$
974
|
|
$
65,161
|
$ 1,220
|
|
$
53,148
|
$
979
|
By-product metal
revenues
|
|
(152)
|
(10)
|
|
(35)
|
(1)
|
|
(698)
|
(13)
|
|
(154)
|
(3)
|
Cash operating costs
(by-product basis)
|
|
$
19,556
|
$ 1,287
|
|
$
18,526
|
$
973
|
|
$
64,463
|
$ 1,207
|
|
$
52,994
|
$
976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde Zone 5
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
262
|
|
|
295
|
|
|
894
|
|
|
865
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
18,715
|
$
71
|
|
$
18,066
|
$
61
|
|
$
62,702
|
$
70
|
|
$
51,932
|
$
60
|
Production costs
(C$)
|
|
C$
25,082
|
C$
96
|
|
C$
23,505
|
C$
80
|
|
C$
84,347
|
C$
94
|
|
C$
66,532
|
C$
77
|
Inventory adjustments
(C$)(ii)
|
|
234
|
—
|
|
160
|
—
|
|
(175)
|
—
|
|
1,259
|
1
|
Minesite operating
costs (C$)
|
|
C$
25,316
|
C$
96
|
|
C$
23,665
|
C$
80
|
|
C$
84,172
|
C$
94
|
|
C$
67,791
|
C$
78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
64,496
|
|
|
82,621
|
|
|
220,883
|
|
|
276,168
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
85,192
|
$ 1,321
|
|
$
101,977
|
$ 1,234
|
|
$
232,855
|
$ 1,054
|
|
$
215,633
|
$
781
|
Inventory
adjustments(ii)
|
|
(16,066)
|
(249)
|
|
(28,998)
|
(351)
|
|
(2,793)
|
(13)
|
|
3,490
|
13
|
Realized gains and
losses on hedges of production costs
|
|
423
|
7
|
|
2,530
|
31
|
|
2,887
|
13
|
|
1,775
|
6
|
Other
adjustments(v)
|
|
4,931
|
76
|
|
4,019
|
49
|
|
15,945
|
73
|
|
10,909
|
39
|
Cash operating costs
(co-product basis)
|
|
$
74,480
|
$ 1,155
|
|
$
79,528
|
$
963
|
|
$
248,894
|
$ 1,127
|
|
$
231,807
|
$
839
|
By-product metal
revenues
|
|
(11,779)
|
(183)
|
|
(11,951)
|
(145)
|
|
(42,014)
|
(190)
|
|
(47,931)
|
(173)
|
Cash operating costs
(by-product basis)
|
|
$
62,701
|
$
972
|
|
$
67,577
|
$
818
|
|
$
206,880
|
$
937
|
|
$
183,876
|
$
666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
complex
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
627
|
|
|
711
|
|
|
1,995
|
|
|
2,158
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
85,192
|
$
136
|
|
$
101,977
|
$
143
|
|
$
232,855
|
$
117
|
|
$
215,633
|
$
100
|
Production costs
(C$)
|
|
C$
114,310
|
C$ 182
|
|
C$
133,066
|
C$ 187
|
|
C$
313,009
|
C$ 157
|
|
C$
277,425
|
C$ 128
|
Inventory adjustments
(C$)(ii)
|
|
(19,647)
|
(31)
|
|
(37,681)
|
(53)
|
|
(1,630)
|
(1)
|
|
1,631
|
1
|
Other adjustments
(C$)(v)
|
|
(2,752)
|
(4)
|
|
(2,328)
|
(3)
|
|
(9,195)
|
(5)
|
|
(9,205)
|
(4)
|
Minesite operating
costs (C$)
|
|
C$
91,911
|
C$ 147
|
|
C$
93,057
|
C$ 131
|
|
C$
302,184
|
C$ 151
|
|
C$
269,851
|
C$ 125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
complex
Per Ounce of Gold
Produced(i)
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
177,243
|
|
|
75,262
|
|
|
435,683
|
|
|
242,957
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
125,455
|
$
708
|
|
$
58,516
|
$
777
|
|
$
326,936
|
$
750
|
|
$
171,858
|
$
707
|
Inventory
adjustments(ii)
|
|
6,994
|
39
|
|
(2,445)
|
(32)
|
|
7,532
|
17
|
|
422
|
2
|
Purchase price
allocation to inventory(iv)
|
|
(3,626)
|
(20)
|
|
—
|
—
|
|
(26,447)
|
(61)
|
|
—
|
—
|
Other
adjustments(v)
|
|
15,414
|
87
|
|
6,737
|
90
|
|
40,631
|
94
|
|
22,851
|
94
|
Cash operating costs
(co-product basis)
|
|
$
144,237
|
$
814
|
|
$
62,808
|
$
835
|
|
$
348,652
|
$
800
|
|
$
195,131
|
$
803
|
By-product metal
revenues
|
|
(1,551)
|
(9)
|
|
(1,067)
|
(15)
|
|
(4,758)
|
(11)
|
|
(3,972)
|
(16)
|
Cash operating costs
(by-product basis)
|
|
$
142,686
|
$
805
|
|
$
61,741
|
$
820
|
|
$
343,894
|
$
789
|
|
$
191,159
|
$
787
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Malartic
complex
Per
Tonne(i)
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
4,911
|
|
|
2,484
|
|
|
12,055
|
|
|
7,295
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
125,455
|
$
26
|
|
$
58,516
|
$
24
|
|
$
326,936
|
$
27
|
|
$
171,858
|
$
24
|
Production costs
(C$)
|
|
C$
168,339
|
C$
34
|
|
C$
75,515
|
C$
30
|
|
C$
440,001
|
C$
36
|
|
C$
218,224
|
C$
30
|
Inventory adjustments
(C$)(ii)
|
|
9,569
|
2
|
|
(2,980)
|
(1)
|
|
10,820
|
1
|
|
694
|
—
|
Purchase price
allocation to inventory (C$)(iv)
|
|
(3,904)
|
(1)
|
|
—
|
—
|
|
(34,555)
|
(3)
|
|
—
|
—
|
Other adjustments
(C$)(v)
|
|
20,081
|
4
|
|
8,705
|
4
|
|
53,505
|
5
|
|
28,933
|
4
|
Minesite operating
costs (C$)
|
|
C$
194,085
|
C$
39
|
|
C$
81,240
|
C$
33
|
|
C$
469,771
|
C$
39
|
|
C$
247,851
|
C$
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
35,880
|
|
|
33,889
|
|
|
107,619
|
|
|
105,211
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
28,805
|
$
803
|
|
$
26,297
|
$
776
|
|
$
84,800
|
$
788
|
|
$
79,044
|
$
751
|
Inventory
adjustments(ii)
|
|
439
|
12
|
|
6
|
—
|
|
(16)
|
—
|
|
694
|
7
|
Realized gains and
losses on hedges of production costs
|
|
207
|
6
|
|
909
|
27
|
|
1,419
|
13
|
|
638
|
6
|
Other
adjustments(v)
|
|
47
|
1
|
|
60
|
2
|
|
149
|
1
|
|
155
|
1
|
Cash operating costs
(co-product basis)
|
|
$
29,498
|
$
822
|
|
$
27,272
|
$
805
|
|
$
86,352
|
$
802
|
|
$
80,531
|
$
765
|
By-product metal
revenues
|
|
(13)
|
—
|
|
(10)
|
(1)
|
|
(38)
|
—
|
|
(31)
|
—
|
Cash operating costs
(by-product basis)
|
|
$
29,485
|
$
822
|
|
$
27,262
|
$
804
|
|
$
86,314
|
$
802
|
|
$
80,500
|
$
765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
756
|
|
|
710
|
|
|
2,215
|
|
|
2,192
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
28,805
|
$
38
|
|
$
26,297
|
$
37
|
|
$
84,800
|
$
38
|
|
$
79,044
|
$
36
|
Production costs
(C$)
|
|
C$
38,656
|
C$
51
|
|
C$
34,381
|
C$
48
|
|
C$
114,142
|
C$
52
|
|
C$
101,552
|
C$
46
|
Inventory adjustments
(C$)(ii)
|
|
625
|
1
|
|
101
|
1
|
|
(35)
|
—
|
|
1,016
|
1
|
Minesite operating
costs (C$)
|
|
C$
39,281
|
C$
52
|
|
C$
34,482
|
C$
49
|
|
C$
114,107
|
C$
52
|
|
C$
102,568
|
C$
47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
152,762
|
|
|
175,487
|
|
|
483,971
|
|
|
471,445
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
106,396
|
$
696
|
|
$
113,736
|
$
648
|
|
$
333,214
|
$
688
|
|
$
371,130
|
$
787
|
Inventory
adjustments(ii)
|
|
3,705
|
24
|
|
4,621
|
26
|
|
3,537
|
7
|
|
(8,012)
|
(17)
|
Realized gains and
losses on hedges of production costs
|
|
(1,530)
|
(10)
|
|
—
|
—
|
|
4,565
|
10
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
|
—
|
—
|
|
(3,120)
|
(18)
|
|
—
|
—
|
|
(71,957)
|
(152)
|
Other
adjustments(v)
|
|
7,063
|
47
|
|
6,799
|
39
|
|
24,048
|
50
|
|
18,388
|
39
|
Cash operating costs
(co-product basis)
|
|
$
115,634
|
$
757
|
|
$
122,036
|
$
695
|
|
$
365,364
|
$
755
|
|
$
309,549
|
$
657
|
By-product metal
revenues
|
|
(288)
|
(2)
|
|
(736)
|
(4)
|
|
(1,475)
|
(3)
|
|
(2,956)
|
(7)
|
Cash operating costs
(by-product basis)
|
|
$
115,346
|
$
755
|
|
$
121,300
|
$
691
|
|
$
363,889
|
$
752
|
|
$
306,593
|
$
650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour Lake
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
5,630
|
|
|
6,505
|
|
|
18,827
|
|
|
16,294
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
106,396
|
$
19
|
|
$
113,736
|
$
17
|
|
$
333,214
|
$
18
|
|
$
371,130
|
$
23
|
Production costs
(C$)
|
|
C$
142,461
|
C$
25
|
|
C$
148,903
|
C$
23
|
|
C$
448,014
|
C$
24
|
|
C$
476,142
|
C$
29
|
Inventory adjustments
(C$)(ii)
|
|
(8,125)
|
(1)
|
|
6,808
|
1
|
|
4,747
|
—
|
|
(9,059)
|
(1)
|
Purchase price
allocation to inventory(C$)(iv)
|
|
—
|
—
|
|
(4,809)
|
(1)
|
|
—
|
—
|
|
(92,317)
|
(6)
|
Other adjustments
(C$)(v)
|
|
8,339
|
1
|
|
8,938
|
2
|
|
28,485
|
2
|
|
23,687
|
2
|
Minesite operating
costs (C$)
|
|
C$
142,675
|
C$
25
|
|
C$
159,840
|
C$
25
|
|
C$
481,246
|
C$
26
|
|
C$
398,453
|
C$
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
46,792
|
|
|
51,775
|
|
|
167,951
|
|
|
137,525
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
35,864
|
$
766
|
|
$
33,533
|
$
648
|
|
$
112,368
|
$
669
|
|
$
98,848
|
$
719
|
Inventory
adjustments(ii)
|
|
1,870
|
40
|
|
599
|
12
|
|
397
|
2
|
|
(548)
|
(4)
|
Realized gains and
losses on hedges of production costs
|
|
334
|
7
|
|
—
|
—
|
|
2,283
|
14
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(10,326)
|
(75)
|
Other
adjustments(v)
|
|
1,376
|
30
|
|
1,634
|
31
|
|
6,133
|
37
|
|
2,922
|
21
|
Cash operating costs
(co-product basis)
|
|
$
39,444
|
$
843
|
|
$
35,766
|
$
691
|
|
$
121,181
|
$
722
|
|
$
90,896
|
$
661
|
By-product metal
revenues
|
|
(107)
|
(2)
|
|
(89)
|
(2)
|
|
(483)
|
(3)
|
|
(276)
|
(2)
|
Cash operating costs
(by-product basis)
|
|
$
39,337
|
$
841
|
|
$
35,677
|
$
689
|
|
$
120,698
|
$
719
|
|
$
90,620
|
$
659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
112
|
|
|
75
|
|
|
311
|
|
|
210
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
35,864
|
$
320
|
|
$
33,533
|
$
447
|
|
$
112,368
|
$
361
|
|
$
98,848
|
$
470
|
Production costs
(C$)
|
|
C$
48,508
|
C$ 435
|
|
C$
43,781
|
C$ 588
|
|
C$
151,744
|
C$ 488
|
|
C$
126,822
|
C$ 605
|
Inventory adjustments
(C$)(ii)
|
|
2,834
|
25
|
|
1,047
|
14
|
|
758
|
2
|
|
(319)
|
(2)
|
Purchase price
allocation to inventory(C$)(iv)
|
|
—
|
—
|
|
(120)
|
(2)
|
|
—
|
—
|
|
(13,248)
|
(63)
|
Other adjustments
(C$)(v)
|
|
1,754
|
16
|
|
2,090
|
28
|
|
8,045
|
26
|
|
3,747
|
19
|
Minesite operating
costs (C$)
|
|
C$
53,096
|
C$ 476
|
|
C$
46,798
|
C$ 628
|
|
C$
160,547
|
C$ 516
|
|
C$
117,002
|
C$ 559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
89,707
|
|
|
91,201
|
|
|
267,856
|
|
|
269,477
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
89,210
|
$
994
|
|
$
71,830
|
$
788
|
|
$
249,221
|
$
930
|
|
$
236,895
|
$
879
|
Inventory
adjustments(ii)
|
|
(2,334)
|
(26)
|
|
(1,601)
|
(18)
|
|
12,518
|
47
|
|
(1,640)
|
(6)
|
Realized gains and
losses on hedges of production costs
|
|
299
|
3
|
|
758
|
8
|
|
(64)
|
—
|
|
(1,437)
|
(5)
|
Other
adjustments(v)
|
|
59
|
1
|
|
80
|
1
|
|
46
|
—
|
|
243
|
1
|
Cash operating costs
(co-product basis)
|
|
$
87,234
|
$
972
|
|
$
71,067
|
$
779
|
|
$
261,721
|
$
977
|
|
$
234,061
|
$
869
|
By-product metal
revenues
|
|
(138)
|
(1)
|
|
(167)
|
(2)
|
|
(477)
|
(2)
|
|
(572)
|
(3)
|
Cash operating costs
(by-product basis)
|
|
$
87,096
|
$
971
|
|
$
70,900
|
$
777
|
|
$
261,244
|
$
975
|
|
$
233,489
|
$
866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
470
|
|
|
401
|
|
|
1,407
|
|
|
1,282
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
89,210
|
$
190
|
|
$
71,830
|
$
179
|
|
$
249,221
|
$
177
|
|
$
236,895
|
$
185
|
Production costs
(C$)
|
|
C$
119,181
|
C$ 254
|
|
C$
91,628
|
C$ 229
|
|
C$
333,896
|
C$ 237
|
|
C$
300,553
|
C$ 235
|
Inventory adjustments
(C$)(ii)
|
|
(2,555)
|
(6)
|
|
(1,286)
|
(3)
|
|
17,051
|
12
|
|
(1,002)
|
(1)
|
Minesite operating
costs (C$)
|
|
C$
116,626
|
C$ 248
|
|
C$
90,342
|
C$ 226
|
|
C$
350,947
|
C$ 249
|
|
C$
299,551
|
C$ 234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
complex
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
116,555
|
|
|
122,994
|
|
|
322,440
|
|
|
279,457
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
133,919
|
$ 1,149
|
|
$
109,905
|
$
894
|
|
$
381,411
|
$ 1,183
|
|
$
313,989
|
$ 1,124
|
Inventory
adjustments(ii)
|
|
9,165
|
78
|
|
6,231
|
50
|
|
2,463
|
8
|
|
12,302
|
44
|
Realized gains and
losses on hedges of production costs
|
|
115
|
1
|
|
(1,084)
|
(9)
|
|
(3,502)
|
(11)
|
|
(4,758)
|
(17)
|
Operational care &
maintenance due to COVID-19(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(1,436)
|
(6)
|
Other
adjustments(v)
|
|
101
|
1
|
|
(27)
|
—
|
|
50
|
—
|
|
13
|
—
|
Cash operating costs
(co-product basis)
|
|
$
143,300
|
$ 1,229
|
|
$
115,025
|
$
935
|
|
$
380,422
|
$ 1,180
|
|
$
320,110
|
$ 1,145
|
By-product metal
revenues
|
|
(573)
|
(4)
|
|
(687)
|
(5)
|
|
(2,121)
|
(7)
|
|
(1,569)
|
(5)
|
Cash operating costs
(by-product basis)
|
|
$
142,727
|
$ 1,225
|
|
$
114,338
|
$
930
|
|
$
378,301
|
$ 1,173
|
|
$
318,541
|
$ 1,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
complex
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
1,077
|
|
|
1,031
|
|
|
2,905
|
|
|
2,816
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
133,919
|
$
124
|
|
$
109,905
|
$
107
|
|
$
381,411
|
$
131
|
|
$
313,989
|
$
112
|
Production costs
(C$)
|
|
C$
179,597
|
C$ 167
|
|
C$
139,317
|
C$ 135
|
|
C$
509,982
|
C$ 176
|
|
C$
398,445
|
C$ 141
|
Inventory adjustments
(C$)(ii)
|
|
12,457
|
11
|
|
8,799
|
9
|
|
3,599
|
1
|
|
16,696
|
6
|
Operational care and
maintenance due to COVID-19 (C$)(iii)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(1,793)
|
—
|
Minesite operating
costs (C$)
|
|
C$
192,054
|
C$ 178
|
|
C$
148,116
|
C$ 144
|
|
C$
513,581
|
C$ 177
|
|
C$
413,348
|
C$ 147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
59,790
|
|
|
81,801
|
|
|
228,161
|
|
|
249,693
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
27,539
|
$
461
|
|
$
34,214
|
$
418
|
|
$
99,969
|
$
438
|
|
$
170,518
|
$
683
|
Inventory
adjustments(ii)
|
|
1,093
|
18
|
|
1,424
|
18
|
|
(1,792)
|
(8)
|
|
(5,385)
|
(22)
|
Realized gains and
losses on hedges of production costs
|
|
1,101
|
18
|
|
—
|
—
|
|
1,778
|
8
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
(73,674)
|
(295)
|
Other
adjustments(v)
|
|
7
|
—
|
|
—
|
—
|
|
46
|
—
|
|
—
|
—
|
Cash operating costs
(co-product basis)
|
|
$
29,740
|
$
497
|
|
$
35,638
|
$
436
|
|
$
100,001
|
$
438
|
|
$
91,459
|
$
366
|
By-product metal
revenues
|
|
(119)
|
(2)
|
|
(88)
|
(1)
|
|
(397)
|
(1)
|
|
(401)
|
(1)
|
Cash operating costs
(by-product basis)
|
|
$
29,621
|
$
495
|
|
$
35,550
|
$
435
|
|
$
99,604
|
$
437
|
|
$
91,058
|
$
365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
144
|
|
|
172
|
|
|
468
|
|
|
385
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
27,539
|
$
191
|
|
$
34,214
|
$
199
|
|
$
99,969
|
$
214
|
|
$
170,518
|
$
443
|
Production costs
(A$)
|
|
A$
42,194
|
A$ 291
|
|
A$
52,840
|
A$ 306
|
|
A$
150,656
|
A$ 322
|
|
A$
241,880
|
A$ 627
|
Inventory adjustments
(A$)(ii)
|
|
1,818
|
13
|
|
2,178
|
13
|
|
(2,539)
|
(6)
|
|
(7,231)
|
(19)
|
Purchase price
allocation to inventory(A$)(iv)
|
|
—
|
—
|
|
(2,329)
|
(14)
|
|
—
|
—
|
|
(104,507)
|
(268)
|
Minesite operating
costs (A$)
|
|
A$
44,012
|
A$ 304
|
|
A$
52,689
|
A$ 305
|
|
A$
148,117
|
A$ 316
|
|
A$
130,142
|
A$ 340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
59,408
|
|
|
61,901
|
|
|
173,230
|
|
|
172,223
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
58,569
|
$
986
|
|
$
51,622
|
$
834
|
|
$
155,200
|
$
896
|
|
$
154,388
|
$
896
|
Inventory
adjustments(ii)
|
|
(2,439)
|
(41)
|
|
(2,464)
|
(40)
|
|
305
|
2
|
|
(6,419)
|
(37)
|
Realized gains and
losses on hedges of production costs
|
|
(788)
|
(13)
|
|
3,076
|
50
|
|
(2,346)
|
(14)
|
|
5,296
|
31
|
Other
adjustments(v)
|
|
(20)
|
(1)
|
|
18
|
—
|
|
(1,293)
|
(7)
|
|
111
|
1
|
Cash operating costs
(co-product basis)
|
|
$
55,322
|
$
931
|
|
$
52,252
|
$
844
|
|
$
151,866
|
$
877
|
|
$
153,376
|
$
891
|
By-product metal
revenues
|
|
(51)
|
(1)
|
|
(52)
|
(1)
|
|
(213)
|
(2)
|
|
(219)
|
(2)
|
Cash operating costs
(by-product basis)
|
|
$
55,271
|
$
930
|
|
$
52,200
|
$
843
|
|
$
151,653
|
$
875
|
|
$
153,157
|
$
889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore milled
(thousands of tonnes)
|
|
|
527
|
|
|
487
|
|
|
1,440
|
|
|
1,504
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
58,569
|
$
111
|
|
$
51,622
|
$
106
|
|
$
155,200
|
$
108
|
|
$
154,388
|
$
103
|
Production costs
(€)
|
|
€
53,071
|
€
101
|
|
€
50,526
|
€
104
|
|
€
144,073
|
€
100
|
|
€
143,984
|
€
96
|
Inventory adjustments
(€)(ii)
|
|
(960)
|
(2)
|
|
(1,932)
|
(4)
|
|
(128)
|
—
|
|
(4,861)
|
(4)
|
Minesite operating
costs (€)
|
|
€
52,111
|
€
99
|
|
€
48,594
|
€
100
|
|
€
143,945
|
€
100
|
|
€
139,123
|
€
92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
25,386
|
|
|
23,041
|
|
|
71,679
|
|
|
71,231
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
40,147
|
$ 1,581
|
|
$
34,513
|
$ 1,498
|
|
$
107,778
|
$ 1,504
|
|
$
106,922
|
$ 1,501
|
Inventory
adjustments(ii)
|
|
1,225
|
48
|
|
360
|
16
|
|
1,738
|
24
|
|
(1,796)
|
(25)
|
Realized gains and
losses on hedges of production costs
|
|
(922)
|
(36)
|
|
(156)
|
(7)
|
|
(2,065)
|
(29)
|
|
(703)
|
(10)
|
Other
adjustments(v)
|
|
324
|
13
|
|
298
|
13
|
|
902
|
13
|
|
923
|
13
|
Cash operating costs
(co-product basis)
|
|
$
40,774
|
$ 1,606
|
|
$
35,015
|
$ 1,520
|
|
$
108,353
|
$ 1,512
|
|
$
105,346
|
$ 1,479
|
By-product metal
revenues
|
|
(7,527)
|
(296)
|
|
(5,171)
|
(225)
|
|
(19,754)
|
(276)
|
|
(16,516)
|
(232)
|
Cash operating costs
(by-product basis)
|
|
$
33,247
|
$ 1,310
|
|
$
29,844
|
$ 1,295
|
|
$
88,599
|
$ 1,236
|
|
$
88,830
|
$ 1,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos Altos
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
450
|
|
|
378
|
|
|
1,215
|
|
|
1,128
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
40,147
|
$
89
|
|
$
34,513
|
$
91
|
|
$
107,778
|
$
89
|
|
$
106,922
|
$
95
|
Inventory
adjustments(ii)
|
|
(1,984)
|
(4)
|
|
360
|
1
|
|
(327)
|
(1)
|
|
(1,796)
|
(2)
|
Minesite operating
costs
|
|
$
38,163
|
$
85
|
|
$
34,873
|
$
92
|
|
$
107,451
|
$
88
|
|
$
105,126
|
$
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
141
|
|
|
538
|
|
|
550
|
|
|
2,179
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
—
|
$
—
|
|
$
644
|
$ 1,197
|
|
$
—
|
$
—
|
|
$ 1,743
|
$
800
|
Inventory
adjustments(ii)
|
|
—
|
—
|
|
(30)
|
(57)
|
|
—
|
—
|
|
(57)
|
(26)
|
Other
adjustments(v)
|
|
—
|
—
|
|
15
|
27
|
|
—
|
—
|
|
63
|
29
|
Cash operating costs
(co-product basis)
|
|
$
—
|
$
—
|
|
$
629
|
$ 1,167
|
|
$
—
|
$
—
|
|
$ 1,749
|
$
803
|
By-product metal
revenues
|
|
—
|
—
|
|
12
|
21
|
|
—
|
—
|
|
(128)
|
(59)
|
Cash operating costs
(by-product basis)
|
|
$
—
|
$
—
|
|
$
641
|
$ 1,188
|
|
$
—
|
$
—
|
|
$ 1,621
|
$
744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creston Mascota
mine
Per
Tonne(vi)
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
—
|
$
—
|
|
$
644
|
$
—
|
|
$
—
|
$
—
|
|
$ 1,743
|
$
—
|
Inventory
adjustments(ii)
|
|
—
|
—
|
|
(30)
|
—
|
|
—
|
—
|
|
(57)
|
—
|
Other
adjustments(v)
|
|
—
|
—
|
|
(614)
|
—
|
|
—
|
—
|
|
(1,686)
|
—
|
Minesite operating
costs
|
|
$
—
|
$
—
|
|
$
—
|
$
—
|
|
$
—
|
$
—
|
|
$
—
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per Ounce of Gold
Produced
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Gold production
(ounces)
|
|
|
22,269
|
|
|
16,285
|
|
|
56,423
|
|
|
58,003
|
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
|
$
28,315
|
$ 1,271
|
|
$
20,286
|
$ 1,246
|
|
$
72,056
|
$ 1,277
|
|
$
55,476
|
$
956
|
Inventory
adjustments(ii)
|
|
(2,319)
|
(103)
|
|
(721)
|
(44)
|
|
447
|
8
|
|
1,411
|
25
|
Other
adjustments(v)
|
|
139
|
6
|
|
150
|
9
|
|
402
|
7
|
|
523
|
9
|
Cash operating costs
(co-product basis)
|
|
$
26,135
|
$ 1,174
|
|
$
19,715
|
$ 1,211
|
|
$
72,905
|
$ 1,292
|
|
$
57,410
|
$
990
|
By-product metal
revenues
|
|
(395)
|
(18)
|
|
(240)
|
(15)
|
|
(1,117)
|
(20)
|
|
(1,399)
|
(24)
|
Cash operating costs
(by-product basis)
|
|
$
25,740
|
$ 1,156
|
|
$
19,475
|
$ 1,196
|
|
$
71,788
|
$ 1,272
|
|
$
56,011
|
$
966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La India
mine
Per
Tonne
|
|
Three Months
Ended
September 30, 2023
|
|
Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2023
|
|
Nine Months
Ended
September 30, 2022
|
Tonnes of ore processed
(thousands of tonnes)
|
|
|
970
|
|
|
1,045
|
|
|
2,510
|
|
|
3,964
|
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
|
$
28,315
|
$
29
|
|
$
20,286
|
$
19
|
|
$
72,056
|
$
29
|
|
$
55,476
|
$
14
|
Inventory
adjustments(ii)
|
|
(2,319)
|
(2)
|
|
(721)
|
—
|
|
447
|
—
|
|
1,411
|
—
|
Minesite operating
costs
|
|
$
25,996
|
$
27
|
|
$
19,565
|
$
19
|
|
$
72,503
|
$
29
|
|
$
56,887
|
$
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) 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
|
(ii) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce of gold
produced are calculated on a production basis, an inventory
adjustment is made to reflect the portion of production not yet
recognized as revenue
|
(iii) This adjustment
reflects the costs associated with the temporary suspension of
mining activities at the Company's mine sites in response to the
COVID-19 pandemic and includes primarily payroll and other
incidental costs associated with maintaining the sites and
properties, and payroll costs associated with employees who were
not working during the period of reduced or suspended operations.
These expenses also include payroll costs of employees who could
not work following the period of temporary suspension or reduced
operations due to the Company's effort to prevent or curtail
community transmission of COVID-19. These costs were previously
classified as "other adjustments" and have now been disclosed
separately to provide additional detail on the reconciliation,
allowing investors to better understand the impact of such events
on the total cash costs per ounce and minesite cost per
tonne
|
(iv) On February 8,
2022, the Company completed the Merger and this adjustment reflects
the fair value allocated to inventory at the Detour Lake, Macassa,
and Fosterville mines as part of the purchase price allocation. On
March 31, 2023, the Company completed Yamana Transaction and this
adjustment reflects the fair value allocated to inventory at the
Canadian Malartic complex as part of the purchase price
allocation
|
(v) Other adjustments
consists of costs associated with a 5% in-kind royalty paid in
respect 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, smelting, refining, and marketing
charges to production costs
|
(vi) The Creston
Mascota mine's cost calculations per tonne for the three and nine
months ended September 30, 2022 excludes approximately $0.6
and $1.7 million of production costs incurred during the period,
respectively, following the ceasing of mining activities at the
Bravo pit during the third quarter of 2020
|
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce
Produced(iv) and All-in Sustaining Costs per Ounce of
Gold Produced(iv)
|
|
Refer to Note
Regarding Certain Measures of Performance in this news release
for details on the composition, usefulness and other information
regarding the Company's use of the non-GAAP measure all-in
sustaining costs per ounce of gold produced
|
The following tables
set out a reconciliation of production costs to the Company's use
of the non-GAAP measure all-in sustaining costs per ounce of gold
produced for the nine months ended September 30, 2023 and
September 30, 2022 on both a by-product basis (deducting
by-product metal revenues from production costs) and co-product
basis (without deducting by-product metal revenues)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
(United States dollars per ounce of gold
produced, except where noted)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Production costs per
the condensed interim consolidated statements of income
(thousands of
United States dollars)
|
$
759,411
|
|
$
657,073
|
|
$
2,155,808
|
|
$ 1,976,444
|
Gold production
(ounces)
|
850,429
|
|
816,794
|
|
2,536,445
|
|
2,335,569
|
Production costs per
ounce of adjusted gold production
|
$
893
|
|
$
804
|
|
$
850
|
|
$
846
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory
adjustments(i)
|
2
|
|
(27)
|
|
10
|
|
(2)
|
Purchase price
allocation to inventory(ii)
|
(4)
|
|
(4)
|
|
(10)
|
|
(67)
|
Realized gains and
losses on hedges of production costs
|
(1)
|
|
7
|
|
2
|
|
—
|
Other(iii)
|
34
|
|
24
|
|
33
|
|
24
|
Total cash costs per
ounce of gold produced (co-product basis)(iv)
|
$
924
|
|
$
804
|
|
$
885
|
|
$
801
|
By-product metal
revenues
|
(26)
|
|
(25)
|
|
(28)
|
|
(32)
|
Total cash costs per
ounce of gold produced (by-product basis)(iv)
|
$
898
|
|
$
779
|
|
$
857
|
|
$
769
|
Adjustments:
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
248
|
|
252
|
|
234
|
|
214
|
General and
administrative expenses (including stock option expense)
|
45
|
|
61
|
|
53
|
|
71
|
Non-cash reclamation
provision and sustaining leases(v)
|
19
|
|
14
|
|
18
|
|
13
|
All-in sustaining costs
per ounce of gold produced (by-product basis)
|
$
1,210
|
|
$
1,106
|
|
$
1,162
|
|
$
1,067
|
By-product metal
revenues
|
26
|
|
25
|
|
28
|
|
32
|
All-in sustaining costs
per ounce of gold produced (co-product basis)
|
$
1,236
|
|
$
1,131
|
|
$
1,190
|
|
$
1,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Under the Company's
revenue recognition policy, revenue from contracts with customers
is recognized upon the transfer of control over metals sold to the
customer. As the total cash costs per ounce of gold produced are
calculated on a production basis, an inventory adjustment is made
to reflect the portion of production not yet recognized as
revenue
|
(ii) On February 8,
2022, the Company completed the Merger and this adjustment reflects
the fair value allocated to inventory at the Detour Lake, Macassa
and Fosterville mines as part of the purchase price allocation. On
March 31, 2023, the Company completed the Yamana Transaction and
this adjustment reflects the fair value allocated to inventory at
the Canadian Malartic complex as part of the purchase price
allocation
|
(iii) Other adjustments
consists of costs associated with a 5% in-kind royalty paid in
respect 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, smelting, refining and marketing
charges to production costs
|
(iv) The total cash
costs per ounce of gold produced is not a recognized measure under
IFRS and this data may not be comparable to data reported by other
gold producers. Note Regarding Certain Measures of
Performance for more information on the Company's use of total
cash cost per ounce of gold produced
|
(v) Sustaining leases
are lease payments related to sustaining assets
|
Reconciliation of
Sustaining Capital Expenditures(i) and Development
Capital Expenditures(i) to the Consolidated Statements
of Cash Flows
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sustaining capital
expenditures(i)(ii)
|
$
211,298
|
|
$
206,756
|
|
$
592,843
|
|
$
506,506
|
Development capital
expenditures(i)(ii)
|
195,128
|
|
221,315
|
|
571,364
|
|
573,220
|
Total Capital
Expenditures
|
$
406,426
|
|
$
428,071
|
|
$
1,164,207
|
|
$
1,079,726
|
Working capital
adjustments
|
13,406
|
|
7,588
|
|
64,180
|
|
57,680
|
Additions to
property, plant and mine development per the condensed
interim consolidated statements of cash flows
|
$
419,832
|
|
$
435,659
|
|
$
1,228,387
|
|
$
1,137,406
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i) Sustaining capital
expenditures and development capital expenditures are not
recognized measures underIFRS and this data may not be comparable
to other gold producers. SeeNote Regarding Certain Measures of
Performance for more information on the Company's use of the
measures sustaining capital expenditures and development capital
expenditures
|
(ii) Sustaining capital
expenditures and development capital expenditures include
capitalized exploration
|
Reconciliation of
Long-Term Debt to Net Debt
|
|
|
|
|
|
|
|
|
As at
|
|
As at
|
|
September 30,
2023
|
|
December 31,
2022
|
Current portion of
long-term debt per the consolidated balance sheets
|
$
100,000
|
|
$
100,000
|
Non-current portion of
long-term debt
|
1,842,553
|
|
1,242,070
|
Long-term
debt
|
$
1,942,553
|
|
$
1,342,070
|
Adjustments:
|
|
|
|
Cash and cash
equivalents
|
$
(355,491)
|
|
$
(658,625)
|
Net Debt
|
$
1,587,062
|
|
$
683,445
|
Reconciliation of
Adjusted Net Income(i) to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of United
States dollars)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
Restated(ii)
|
|
|
|
Restated(ii)
|
Net income for the
period - basic
|
$
178,606
|
|
$
66,679
|
|
$
2,322,318
|
|
$
476,144
|
Dilutive impact of
cash settling LTIP
|
(1,915)
|
|
137
|
|
(4,831)
|
|
535
|
Net income for the
period - diluted
|
$
176,691
|
|
$
66,816
|
|
$
2,317,487
|
|
$
476,679
|
Foreign currency
translation gain
|
(6,492)
|
|
(15,479)
|
|
(2,258)
|
|
(27,761)
|
Realized and
unrealized loss on derivative financial instruments
|
34,010
|
|
162,374
|
|
1,038
|
|
174,463
|
Transaction costs and
severance related to acquisitions
|
4,591
|
|
183
|
|
21,503
|
|
92,322
|
Revaluation gain on
Yamana Transaction
|
—
|
|
—
|
|
(1,543,414)
|
|
—
|
Net loss on disposal
of property, plant and equipment
|
5,491
|
|
509
|
|
9,092
|
|
4,423
|
Other(iii)
|
5,152
|
|
3,785
|
|
3,175
|
|
1,624
|
Purchase price
allocation to inventory(iv)
|
3,656
|
|
3,120
|
|
26,477
|
|
155,956
|
Income and mining
taxes adjustments
|
(5,070)
|
|
1,302
|
|
(24,293)
|
|
(48,096)
|
Adjusted net income
for the period - basic
|
$
219,944
|
|
$
222,473
|
|
$
813,638
|
|
$
829,075
|
Adjusted net income
for the period - diluted
|
$
218,029
|
|
$
222,610
|
|
$
808,807
|
|
$
829,610
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Adjusted
net income is not a recognized measure under IFRS and this data may
not be comparable to other gold producers. SeeNote Regarding
Certain Measures of Performance for more information on the
Company's use of adjusted net income
|
(ii) Certain
previously reported line items have been restated to reflect the
final purchase price allocation of the Merger
|
(iii) Other
adjustments include environmental remediation, integration costs
and payments that relate to prior years that management considers
are not reflective of the Company's underlying performance in the
period
|
(iv) As part
of the purchase price allocation in a business combination, the
Company is required to determine the fair value of net assets
acquired. These non-cash fair value adjustments which increased the
cost of inventory sold during the period and are not representative
of ongoing operations, were normalized from net income
|
EBITDA and Adjusted EBITDA
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(thousands of
United States dollars)
|
2023
|
|
2022(i)
|
|
2023
|
|
2022(i)
|
|
|
|
|
|
|
|
|
Net income for the
period
|
$
178,606
|
|
$
66,679
|
|
$
2,322,318
|
|
$
476,144
|
Finance
costs
|
35,704
|
|
19,278
|
|
94,989
|
|
62,892
|
Amortization of
property, plant and mine development
|
414,994
|
|
283,486
|
|
1,100,215
|
|
809,021
|
Income and mining tax
expense
|
92,706
|
|
149,310
|
|
360,833
|
|
376,367
|
EBITDA
|
722,010
|
|
518,753
|
|
3,878,355
|
|
1,724,424
|
Foreign currency
translation gain
|
(6,492)
|
|
(15,479)
|
|
(2,258)
|
|
(27,761)
|
Realized and
unrealized loss on derivative financial instruments
|
34,010
|
|
162,374
|
|
1,038
|
|
174,463
|
Transaction costs and
severance related to acquisitions
|
4,591
|
|
183
|
|
21,503
|
|
92,322
|
Revaluation gain on
Yamana Transaction
|
—
|
|
—
|
|
(1,543,414)
|
|
—
|
Net loss on disposal
of property, plant and equipment
|
5,491
|
|
509
|
|
9,092
|
|
4,423
|
Other(ii)
|
5,152
|
|
3,785
|
|
3,175
|
|
1,624
|
Purchase price
allocation to inventory
|
3,656
|
|
3,120
|
|
26,477
|
|
155,956
|
Income and mining
taxes adjustments(iii)
|
(5,070)
|
|
1,302
|
|
(24,293)
|
|
(48,906)
|
Adjusted
EBITDA
|
$
763,348
|
|
$
674,547
|
|
$
2,369,675
|
|
$
2,076,545
|
|
|
|
|
|
|
|
|
Free Cash Flow and Free Cash Flow Before Changes in Non-Cash
Components of Working Capital
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(thousands of
United States dollars)
|
2023
|
|
2022(i)
|
|
2023
|
|
2022(i)
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
502,088
|
|
$
575,438
|
|
$
1,873,701
|
|
$
1,716,136
|
Additions to property,
plant and mine development
|
(419,832)
|
|
(435,659)
|
|
(1,228,387)
|
|
(1,137,406)
|
Free Cash
Flow
|
82,256
|
|
139,779
|
|
645,314
|
|
578,730
|
Changes in trade
receivables
|
$
(2,572)
|
|
$
24,295
|
|
$
(8,037)
|
|
$
(14,540)
|
Changes in income
taxes
|
7,425
|
|
(47,834)
|
|
(81,980)
|
|
(4,503)
|
Changes in
inventory
|
118,251
|
|
159,300
|
|
144,998
|
|
(8,742)
|
Changes in other
current assets
|
6,099
|
|
(73,459)
|
|
94,984
|
|
44,406
|
Changes in accounts
payable and accrued liabilities
|
49,432
|
|
(72,905)
|
|
(51,427)
|
|
(97,950)
|
Changes in interest
payable
|
(12,067)
|
|
(6,471)
|
|
(1,760)
|
|
(4,476)
|
Free Cash Flow
Before Changes in Non-Cash Components of Working
Capital
|
$
248,824
|
|
$
122,705
|
|
$
742,092
|
|
$
492,925
|
Additions to property,
plant and mine development
|
419,832
|
|
435,659
|
|
1,228,387
|
|
1,137,406
|
Cash provided by
operating activities before working capital
adjustments
|
$
668,656
|
|
$
558,364
|
|
$
1,970,479
|
|
$
1,630,331
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) The Company
finalized the purchase price allocation of the Merger during the
year ended December 31, 2022 and adjustments were made
retrospectively to the acquisition date of February 8, 2022 and the
comparative amounts above have been adjusted accordingly. For more
information please see Note 5 in the Company's condensed interim
consolidated financial statements.
|
(ii) Other adjustments
include environmental remediation, integration costs and payments
that relate to prior years that management considers are not
reflective of the Company's underlying performance in the
period.
|
(iii) As part of the
purchase price allocation in a business combination, the Company is
required to determine the fair value of net assets acquired. These
non-cash fair value adjustments which increased the cost of
inventory sold during the period and are not representative of
ongoing operations, were normalized from net income.
|
View original
content:https://www.prnewswire.com/news-releases/agnico-eagle-reports-third-quarter-2023-results--solid-quarterly-gold-production-and-cost-performance-well-positioned-to-achieve-annual-cost-guidance-and-gold-production-above-the-mid-point-of-annual-guidance-301967877.html
SOURCE Agnico Eagle Mines Limited