Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless
otherwise noted)
TORONTO, July 31,
2024 /CNW/ - Agnico Eagle Mines Limited (NYSE:
AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today reported
financial and operating results for the second quarter of 2024.
"We continue to deliver strong and reliable operational
results which, combined with higher gold prices, drove record
operating margin and free cash flow for the third consecutive
quarter. As a result of the excellent performance of our operations
through the first half of 2024, we are highly confident we will
achieve our full year production and cost guidance," said
Ammar Al-Joundi, Agnico Eagle's
President and Chief Executive Officer. "We generated over half of a
billion dollars of free cash flow in the second quarter, supporting
a significant strengthening of our balance sheet and increased
returns to shareholders. We continue to take a measured approach
advancing key pipeline projects that show strong risk-adjusted
returns, such as the Detour Lake underground and Upper Beaver
projects. Our focus remains on capital discipline and cost control
to ensure that the benefits of higher gold prices accrue to our
shareholders through strengthening our financial position and
increasing shareholder returns," added Mr. Al-Joundi.
Second quarter 2024 highlights:
- Strong quarterly gold production – Payable gold
production1 was 895,838 ounces at production costs per
ounce of $862, total cash costs per
ounce2 of $870 and all-in
sustaining costs ("AISC") per ounce2 of $1,169. Gold production was led by strong
production at Canadian Malartic, LaRonde and Fosterville
- Record quarterly adjusted net
income3 – The Company reported quarterly
net income of $472.0 million or
$0.95 per share and adjusted net
income of $535.3 million or
$1.07 per share
- Record quarterly cash provided by operating activities and
free cash flow – The Company generated record cash provided by
operating activities of $961.3
million or $1.92 per share
($986.2 million or $1.97 per share before changes in non-cash
working capital balances4) and free cash flow4 of
$557.2 million or $1.12 per share ($582.2
million or $1.17 per share
before changes in non-cash working capital
balances4)
- Strengthening investment grade balance sheet and financial
flexibility – The Company increased its cash position by
$397.4 million to $922.0 million and significantly reduced net debt
as at June 30, 2024. Subsequent to
quarter-end, the Company repaid the $100.0
million 5.02% Series B senior notes at maturity and repaid
$150.0 million of the $600.0 million unsecured term loan facility drawn
in 2023
- 2024 gold production and cost guidance reiterated – Full
year expected payable gold production remains unchanged at
approximately 3.35 to 3.55 million ounces in 2024, with total cash
costs per ounce and AISC per ounce in 2024 unchanged at
$875 to $925 and $1,200 to
$1,250, respectively. Total capital
expenditures (excluding capitalized exploration) for 2024 are still
estimated to be between $1.6 billion
to $1.7 billion. Capitalized
exploration is now expected to be approximately $187 million for the full year 2024. Further
details are set out in the "2024 Guidance" section below
- Update on key value drivers and pipeline projects
- Approval of measured investments over next three years to
further evaluate and de-risk the Detour Lake underground and Upper
Beaver projects – Based on internal studies indicating solid
risk-adjusted returns for the Detour Lake underground and Upper
Beaver projects5, the Company has adopted a measured
approach to advance these projects, approving $100.0 million and $200.0
million investments, respectively, over approximately three
years. At Detour Lake, a 2.0-kilometre exploration ramp is expected
to be developed to a depth of 270 metres to collect a bulk sample
and to facilitate infill and expansion drilling of the current
underground mineral resource. At Upper Beaver, an exploration ramp
and an exploration shaft are expected to be developed to a depth of
250 metres and 760 metres, respectively, to establish underground
drilling platforms and collect bulk samples
- Detour Lake – In June
2024, the Company released the results of a technical
study reflecting the potential for a concurrent underground
operation at Detour Lake that would accelerate access to higher
grade ore and increase annual production to approximately one
million ounces for 14 years starting in 2030 (see the Company's
news release dated June 19, 2024). In
the second quarter of 2024, with the replacement of the defective
grinding media at the SAG mill and record quarterly mill
availability of 93.0%, mill throughput improved to 74,637 tonnes
per day ("tpd") and is expected to reach the target rate of 76,700
tpd by the end of 2024
- Upper Beaver – A positive internal
evaluation was completed in June
2024 for a standalone mine and mill scenario at Upper
Beaver. Based on this evaluation, the Company believes Upper Beaver
has the potential to produce an annual average of approximately
210,000 ounces of gold and 3,600 tonnes of copper, with initial
production possible as early as 2030. Over an expected 13-year mine
life, total payable gold and copper production is expected to be
approximately 2.8 million ounces and 46,300 tonnes, respectively.
Estimated total cash costs per ounce on a by-product basis and AISC
per ounce on a by-product basis are expected to be approximately
$592 and $733, respectively. In addition, the project has
the potential to unlock significant exploration potential at depth
and within satellite deposits in the Company's Kirkland Lake camp
- Odyssey mine at Canadian Malartic – At Odyssey
South, record quarterly mining rates and gold production were
achieved at approximately 3,750 tpd and 22,300 ounces of gold,
respectively. In the second quarter of 2024, ramp development
continued to exceed the Company's target, reaching the third
production level at East Gouldie at a depth of 832 metres as at
June 30, 2024. Shaft sinking advanced
at an average rate of 2.5 metres per day and reached a depth of 680
metres as at June 30, 2024. Surface
construction is progressing as planned, with a focus on the main
hoist building, phase two of the paste plant and the operations
complex
- Approval of a supplemental exploration budget of
$50.0 million – The Company's
exploration program returned positive results in the first half of
2024 at Canadian Malartic, Detour Lake and Hope Bay, showing
excellent potential to identify additional mineral resources. These
results support increased budgets approved by the Company for the
second half of 2024.
- East Gouldie at Odyssey mine – Recent exploration
drilling continued to return good results in the eastern and
western extensions of the East Gouldie deposit including 4.5 grams
per tonne ("g/t") gold over 6.5 metres at 1,571 metres depth
approximately 770 metres east of the current mineral reserves and
2.5 g/t gold over 30.0 metres at 1,473 metres depth and 85 metres
west of the current mineral reserves. The results from the ongoing
exploration program are anticipated to have a positive impact on
the mineral resource estimate at year-end 2024
- Detour Lake underground – Infill drilling into the
high-grade corridor in the West Pit zone continued to confirm the
higher grades and mineralized structure amenable to underground
mining. Highlights include 4.0 g/t gold over 22.3 metres at 413
metres depth and 4.4 g/t gold over 30.1 metres at 550 metres depth.
Near the proposed exploration ramp, highlights include 20.6 g/t
gold over 5.5 metres at 280 metres depth and 4.7 g/t gold over 15.6
metres at 313 metres depth
- Madrid at Hope Bay –
Exploration drilling during the second quarter of 2024 totalled
35,400 metres and continued to return strong results from infill
drilling north of the Patch 7 mineral resources, including 17.0 g/t
gold over 25.8 metres at 419 metres depth, 7.2 g/t gold over 8.1
metres at 559 metres depth and 5.3 g/t gold over 18.0 metres at 278
metres depth, further confirming the greater thicknesses and higher
gold grades in this area compared to the rest of the Madrid deposit
- Reconciliation Action Plan and 2023 Climate Action Report
published – On July 10, 2024, the
Company released its first Reconciliation Action Plan, reinforcing
its commitment to reconciliation with Indigenous Peoples and
communities. In addition, on July 31,
2024, the Company released its 2023 Climate Action Report.
In line with the recommendations of the Task Force on
Climate-related Financial Disclosures and Towards Sustainable
Mining Climate Change protocol, the 2023 Climate Action Report
outlines how the Company is addressing climate change risks and
opportunities
- Continued focus on shareholder returns – In the second
quarter of 2024, the board of directors declared a quarterly
dividend of $0.40 per share. In the
second quarter of 2024, the Company also repurchased 763,043 common
shares at an average share price of $65.53 for an aggregate of $50.0 million through its normal course issuer
bid ("NCIB"), which was renewed in May
2024
_______________________________
|
1 Payable
production of a mineral means the quantity of a mineral produced
during a period contained in products that have been or will be
sold by the Company whether such products are shipped during the
period or held as inventory at the end of the period.
|
2 Total cash
costs per ounce and AISC per ounce are a non-GAAP ratios that are
not standardized financial measures under IFRS and, in this news
release, unless otherwise specified, are reported on (i) a per
ounce of gold production basis, and (ii) a by-product basis. For a
description of the composition and usefulness of these non-GAAP
measures and reconciliations of total cash costs per ounce and AISC
per ounce to production costs on both a by-product and a co-product
basis, see "Note Regarding Certain Measures of Performance"
below.
|
3 Adjusted
net income and adjusted net income per share are non-GAAP measures
or ratios that are not standardized financial measures under IFRS.
For a description of the composition and usefulness of these
non-GAAP measures and a reconciliation to net income see "Note
Regarding Certain Measures of Performance" below.
|
4 Cash
provided by operating activities before changes in non-cash working
capital balances, free cash flow and free cash flow before changes
in non-cash working capital balances and their related per share
measures are non-GAAP measures or ratios that are not standardized
financial measures under IFRS. For a description of the composition
and usefulness of these non-GAAP measures and a reconciliation to
cash provided by operating activities see "Note Regarding Certain
Measures of Performance" below.
|
5 The
forecast parameters surrounding the technical study for the Detour
Lake underground project and the internal evaluation for the Upper
Beaver project were based on a preliminary economic assessment,
which is preliminary in nature and includes inferred mineral
resources. For further detail, refer to the Company's news release
dated June 19, 2024 for the Detour Lake underground project and the
Update on Key Value Drivers and Pipeline Projects section set our
below for the Upper Beaver project.
|
Second Quarter 2024 Results Conference Call and Webcast
Tomorrow
Agnico Eagle's senior management will host a conference call on
Thursday, August 1, 2024 at
11:00 AM (E.D.T.) to discuss the
Company's financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may
register on the Company website at www.agnicoeagle.com, or directly
via the link here.
Via Phone:
To join the conference call by phone, please dial 416.764.8659
or toll-free 1.888.664.6392 to be entered into the call by an
operator. To ensure your participation, please call approximately
five minutes prior to the scheduled start of the call.
To join the conference call by phone without operator
assistance, you may register your phone number here 30 minutes
prior to the scheduled start of the call to receive an instant
automated call back.
Replay Archive:
Please dial 416.764.8677 or toll-free 1.888.390.0541, access
code 576159#. The conference call replay will expire on
September 1, 2024.
The webcast, along with presentation slides, will be archived
for 180 days on the Company's website.
Second Quarter 2024 Production and Cost
Results
Production and Cost
Results Summary*
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
895,838
|
|
873,204
|
|
1,774,490
|
|
1,686,017
|
Gold sales
(ounces)
|
|
874,230
|
|
858,848
|
|
1,753,293
|
|
1,646,406
|
Production costs per
ounce
|
|
$
862
|
|
$
851
|
|
$
877
|
|
$
828
|
Total cash costs per
ounce
|
|
$
870
|
|
$
840
|
|
$
885
|
|
$
836
|
AISC per
ounce
|
|
$
1,169
|
|
$
1,150
|
|
$ 1,179
|
|
$ 1,138
|
* Production and Cost
Results Summary reflects Agnico Eagle's 50% interest in Canadian
Malartic up to and including March 30, 2023 and 100%
thereafter.
|
Gold Production
- Second Quarter of 2024 – Gold production increased when
compared to the prior-year period primarily due to higher
production from Meadowbank and Macassa, partially offset by lower
production at Fosterville
- First Six Months of 2024 – Gold production increased when
compared to the prior-year period as a result of the additional
production from the acquisition of the remaining 50% of Canadian
Malartic, contribution from Odyssey in the current year and
increased production from Meadowbank, partially offset by lower
production at Fosterville
Production Costs per Ounce
- Second Quarter and First Six Months of 2024 – Total production
costs per ounce increased when compared to the prior-year periods
primarily due to higher royalties mainly arising from higher gold
prices and higher production costs at Canadian Malartic related to
underground mining operations, partially offset by higher gold
production during the period
Total Cash Costs per Ounce
- Second Quarter and First Six Months of 2024 – Total cash costs
per ounce increased when compared to the prior-year periods
primarily due to the reasons described above for the increase in
production costs per ounce combined with the impact of lower gold
grades at Fosterville, partially offset by higher gold
production during the period
AISC per Ounce
- Second Quarter of 2024 – AISC per ounce increased when compared
to the prior-year period due to the factors causing higher total
cash costs per ounce, partially offset by higher production and
slightly lower sustaining capital expenditures during the
period
- First Six Months of 2024 – AISC per ounce increased when
compared to the prior-year period due to the factors causing higher
total cash costs per ounce and higher sustaining capital
expenditures, partially offset by higher gold production during the
period
Second Quarter 2024 Financial Results
Financial Results
Summary
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
20236
|
|
2024
|
|
20236
|
Realized gold price
($/ounce)7
|
|
$
2,342
|
|
$
1,975
|
|
$
2,202
|
|
$
1,935
|
Net income ($
millions)8
|
|
$
472.0
|
|
$
323.7
|
|
$
819.2
|
|
$
2,140.6
|
Adjusted net income ($
millions)
|
|
$
535.3
|
|
$
319.3
|
|
$
912.7
|
|
$
590.5
|
EBITDA ($
millions)9
|
|
$
1,123.1
|
|
$
883.4
|
|
$
2,005.6
|
|
$
3,156.3
|
Adjusted EBITDA ($
millions)9
|
|
$
1,176.2
|
|
$
885.2
|
|
$
2,105.5
|
|
$
1,625.6
|
Cash provided by
operating activities ($ millions)
|
|
$
961.3
|
|
$
722.0
|
|
$
1,744.5
|
|
$
1,371.6
|
Cash provided by
operating activities before changes in
non-cash working capital balances ($ millions)
|
|
$
986.2
|
|
$
693.0
|
|
$
1,763.3
|
|
$
1,301.8
|
Capital
expenditures10
|
|
$
407.3
|
|
$
416.0
|
|
$
779.3
|
|
$
757.8
|
Free cash flow ($
millions)
|
|
$
557.2
|
|
$
298.4
|
|
$
952.8
|
|
$
563.1
|
Free cash flow before
changes in non-cash working capital
balances ($ millions)
|
|
$
582.2
|
|
$
269.4
|
|
$
971.6
|
|
$
493.3
|
|
|
|
|
|
|
|
|
|
Net income per share
(basic)
|
|
$
0.95
|
|
$
0.66
|
|
$
1.64
|
|
$
4.45
|
Adjusted net income per
share (basic)
|
|
$
1.07
|
|
$
0.65
|
|
$
1.83
|
|
$
1.23
|
Cash provided by
operating activities per share (basic)
|
|
$
1.92
|
|
$
1.46
|
|
$
3.50
|
|
$
2.85
|
Cash provided by
operating activities before changes in non-cash working capital
balances per share (basic)
|
|
$
1.97
|
|
$
1.40
|
|
$
3.54
|
|
$
2.70
|
Free cash flow per
share (basic)
|
|
$
1.12
|
|
$
0.60
|
|
$
1.91
|
|
$
1.17
|
Free cash flow before
changes in non-cash working capital
balances per share (basic)
|
|
$
1.17
|
|
$
0.55
|
|
$
1.95
|
|
$
1.02
|
Net Income
- Second Quarter of 2024
- Net income was $472.0 million
($0.95 per share). This result
includes the following items (net of tax): non-recurring tax
adjustments and foreign currency translation losses on deferred tax
liabilities of $25.7 million
($0.05 per share), derivative losses
on financial instruments of $14.4
million ($0.03 per share), net
asset disposals losses of $11.5
million ($0.02 per share) and
foreign exchange and other losses of $11.7
million ($0.02 per share)
- Excluding the above items results in adjusted net income of
$535.3 million or $1.07 per share
- Included in net income and not adjusted above, is a non-cash
stock option expense of $2.1 million
(less than $0.01 per share)
- et income of $472.0 million in
the second quarter of 2024 increased compared to net income of
$323.7 million in the prior-year
period primarily due to stronger mine operating
margins11 resulting from higher realized gold prices and
higher sales volumes, partially offset by losses on derivative
financial instruments in the current period, and higher income and
mining tax expenses
- First Six Months of 2024 – Net income of $819.2 million decreased compared to the
prior-year period primarily due to a remeasurement gain at Canadian
Malartic in the prior period 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 Canadian Malartic to fair value, partially offset by
higher realized gold prices and higher sales volumes
___________________________________
|
6 Certain
previously reported line items have been restated to reflect the
final purchase price allocation related to the acquisition of the
Canadian assets of Yamana Gold Inc. (the "Yamana Transaction")
including the 50% of Canadian Malartic that the Company did not
own.
|
7 Realized
gold price is calculated as gold revenues from mining operations
divided by the number of ounces sold.
|
8 For the
first quarter of 2023, includes a $1.5 billion revaluation gain on
the 50% interest the Company owned in Canadian Malartic prior to
the Yamana Transaction on March 31, 2023.
|
9 "EBITDA"
means earnings before interest, taxes, depreciation, and
amortization. EBITDA and adjusted EBITDA are non-GAAP measures or
ratios that are not standardized financial measures under IFRS. For
a description of the composition and usefulness of these non-GAAP
measures and a reconciliation to net income see "Note Regarding
Certain Measures of Performance" below.
|
10 Includes
capitalized exploration.
|
11 Operating
margin is a non-GAAP measure that is not a standardized measure
under IFRS. For a description of the composition and usefulness of
this non-GAAP measure and a reconciliation to net income see "Note
Regarding Certain Measures of Performance" below.
|
Adjusted EBITDA
- Second Quarter of 2024 – Adjusted EBITDA increased when
compared to the prior-year period primarily due to stronger mine
operating margins from higher realized gold prices and higher sales
volumes
- First Six Months of 2024 – Adjusted EBITDA increased when
compared to the prior-year period primarily due to the reasons set
out above for net income and as a result of the acquisition of the
remaining 50% of Canadian Malartic
Cash Provided by Operating Activities
- Second Quarter and First Six Months of 2024 – Cash provided by
operating activities and cash provided by operating activities
before changes in non-cash working capital balances increased when
compared to the prior-year periods primarily due to the reasons
described above related to the increases in adjusted EBITDA
Free Cash Flow Before Changes in Non-cash Working Capital
Balances
- Second Quarter and First Six Months of 2024 – Free cash flow
before changes in non-cash working capital balances was a record
for the third consecutive quarter and increased when compared to
the prior-year periods due to the reasons described above related
to cash provided by operating activities, as well as lower
additions to property, plant and mine development
Capital Expenditures
In the second quarter of 2024, capital expenditures were
$362.4 million and capitalized
exploration expenditures were $44.9
million, for a total of $407.3
million. Expected capital expenditures (excluding
capitalized exploration) remain in line with guidance for the full
year 2024. As a result of the supplemental exploration budget
approved of $50.0 million and the
approval of the exploration ramp construction at Detour Lake and
the exploration ramp and exploration shaft construction at Upper
Beaver, capitalized exploration is expected to increase to
approximately $186.8 million for
the full year 2024. Further details are set out in the "2024
Guidance" section below.
The following table sets out a summary of capital expenditures
(including sustaining capital expenditures12 and
development capital expenditures12) and capitalized
exploration in the second quarter of 2024 and the first six months
of 2024.
_________________________________
|
12
Sustaining capital expenditures and development capital
expenditures are non-GAAP measures that are not standardized
financial measures under IFRS. For a discussion of the
composition and usefulness of these non-GAAP measures and a
reconciliation to additions to property, plant and mine development
as set out in the consolidated statements of cash flows, see "Note
Regarding Certain Measures of Performance" below.
|
Summary of Capital
Expenditures
|
|
|
|
|
|
|
|
($
thousands)
|
|
|
|
|
|
|
|
|
Capital
Expenditures*
|
|
Capitalized
Exploration
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Jun 30,
2024
|
|
Jun 30,
2024
|
|
Jun 30,
2024
|
|
Jun 30,
2024
|
Sustaining Capital
Expenditures
|
|
|
|
|
|
|
|
LaRonde
|
$
20,899
|
|
$
43,823
|
|
$
557
|
|
876
|
Canadian
Malartic
|
28,053
|
|
55,098
|
|
—
|
|
—
|
Goldex
|
11,354
|
|
23,407
|
|
1,045
|
|
1,783
|
Detour Lake
|
61,971
|
|
111,609
|
|
—
|
|
—
|
Macassa
|
6,058
|
|
16,189
|
|
408
|
|
808
|
Meliadine
|
16,083
|
|
33,948
|
|
2,490
|
|
3,827
|
Meadowbank
|
21,560
|
|
41,502
|
|
—
|
|
—
|
Fosterville
|
7,306
|
|
12,789
|
|
—
|
|
—
|
Kittila
|
18,212
|
|
34,276
|
|
415
|
|
865
|
Pinos Altos
|
6,102
|
|
11,091
|
|
617
|
|
920
|
La India
|
—
|
|
22
|
|
—
|
|
—
|
Other
|
1,940
|
|
2,269
|
|
270
|
|
845
|
Total Sustaining
Capital Expenditures
|
$
199,538
|
|
$
386,023
|
|
$
5,802
|
|
$
9,924
|
|
|
|
|
|
|
|
|
Development Capital
Expenditures
|
|
|
|
|
|
|
|
LaRonde
|
$
20,637
|
|
$
44,726
|
|
$
—
|
|
—
|
Canadian
Malartic
|
43,199
|
|
79,204
|
|
874
|
|
2,192
|
Goldex
|
2,925
|
|
7,056
|
|
—
|
|
—
|
Detour Lake
|
31,315
|
|
69,074
|
|
9,547
|
|
17,099
|
Macassa
|
22,312
|
|
34,458
|
|
9,386
|
|
17,704
|
Meliadine
|
18,849
|
|
37,094
|
|
2,720
|
|
6,806
|
Meadowbank
|
—
|
|
(27)
|
|
—
|
|
—
|
Fosterville
|
9,186
|
|
18,614
|
|
3,342
|
|
6,966
|
Kittila
|
1,288
|
|
2,196
|
|
2,428
|
|
4,559
|
Pinos Altos
|
806
|
|
1,452
|
|
—
|
|
4
|
San Nicolás
project
|
6,284
|
|
11,655
|
|
—
|
|
—
|
Other
|
6,051
|
|
8,016
|
|
10,813
|
|
14,525
|
Total Development
Capital Expenditures
|
$
162,852
|
|
$
313,518
|
|
$
39,110
|
|
$
69,855
|
Total Capital
Expenditures
|
$
362,390
|
|
$
699,541
|
|
$
44,912
|
|
$
79,779
|
* Excludes capitalized
exploration
|
2024 Guidance
Production and Cost Guidance
Full year guidance remains unchanged at approximately 3.35 to
3.55 million ounces of gold, total cash costs per ounce of
$875 to $925 and AISC per ounce of $1,200 to $1,250.
Capital Expenditure Guidance
Total expected capital expenditures (excluding capitalized
exploration) for 2024 are still estimated to be between
$1.6 billion to $1.7 billion.
Exploration Guidance
The Company's exploration and corporate development expense for
2024 is now expected to be approximately $271.4 million (compared to $230.0 million in the prior guidance). Based on
positive exploration results in the first half of 2024 at Canadian
Malartic, Detour Lake and Hope Bay, the Company has approved a
supplemental budget of $50.0 million
($41.4 million expensed exploration
and $8.6 million capitalized
exploration). The supplemental exploration budget includes
$16.5 million at Canadian Malartic
for 84,500 metres of drilling, $10.9
million at Detour Lake for 55,000 metres of drilling (of
which $8.6 million will be
non-sustaining capitalized exploration expenditures) and
$22.6 million at Hope Bay for 62,000
metres of drilling.
The Company's capitalized exploration expenditures are now
expected to be approximately $186.8 million (compared to $110.0 million in the prior guidance). To further
study and de-risk the Detour Lake underground and Upper Beaver
projects, the Company has approved $100.0
million and $200.0 million
investments, respectively, over approximately three years. At
Detour Lake, approximately $19.6
million is forecast to be spent in 2024 related to the
construction of surface facilities and site preparation. At Upper
Beaver, approximately $50.0 million
is forecast to be spent in 2024 related to the construction of
surface facilities, site preparation and the excavation of the
shaft collar (of which $15.0 million
was spent in the first half of 2024).
The breakdown of the incremental budget approved in exploration
expense and capitalized exploration expenditures is set out in the
table below.
Estimated 2024 Mid-Point Exploration and Corporate
Development Expense and 2024 Capitalized Exploration
Expenditures
|
Exploration and
Corporate Development
Expense
|
Capitalized
Exploration
|
($
thousands)
|
Sustaining
|
Non-Sustaining
|
Prior
Guidance
|
$
230,000
|
$
16,500
|
$
92,100
|
Incremental exploration
expenditures:
|
|
|
|
Canadian
Malartic
|
16,500
|
—
|
—
|
Detour Lake
|
2,300
|
—
|
28,200
|
Upper Beaver
|
—
|
—
|
50,000
|
Hope Bay
|
22,600
|
—
|
—
|
Guidance
|
$
271,400
|
$
16,500
|
$
170,300
|
Depreciation Guidance
Depreciation and amortization expense in 2024 is now expected to
be at the lower end of the guidance range of $1.56 to $1.61
billion.
Record Cash Flow Generation Continues to Enhance Investment
Grade Balance Sheet Alongside Continued Commitment to Shareholder
Returns
Cash and cash equivalents increased by $397.4 million when compared to the prior quarter
primarily due to higher cash provided by operating activities as a
result of higher revenues from higher realized gold prices and
higher sales volumes.
As at June 30, 2024, the Company's
long-term debt was $1,841.7 million,
consistent with the prior quarter. No amounts were outstanding
under the Company's unsecured revolving bank credit facility as at
June 30, 2024, and available
liquidity remained at approximately $2.0
billion, not including the uncommitted $1.0 billion accordion feature.
The following table sets out the calculation of net
debt13, which decreased by $396.7
million when compared to the prior quarter primarily as a
result of higher cash and cash equivalents.
Net Debt
Summary
|
|
|
($ millions)
|
|
|
|
|
|
|
As at
|
|
As at
|
|
|
Jun 30,
2024
|
|
Mar 31,
2024
|
Current portion of
long-term debt
|
|
$
740.0
|
|
$
100.0
|
Non-current portion of
long-term debt
|
|
1,101.7
|
|
1,741.0
|
Long-term
debt
|
|
$
1,841.7
|
|
$
1,841.0
|
Less: cash and cash
equivalents
|
|
(922.0)
|
|
(524.6)
|
Net debt
|
|
$
919.7
|
|
$
1,316.4
|
Subsequent to June 30, 2024, the
Company completed two debt repayments. On July 24, 2024, $100.0
million was repaid with cash on hand on the 2012 Series B
5.02% Senior Notes on maturity and on July
31, 2024, $150.0 million was
repaid with cash on hand of the $600.0
million outstanding on the term loan facility. The remaining
$450.0 million of indebtedness under
the term loan facility is due and payable by April 21, 2025.
In order to maintain financial flexibility, and consistent with
past practice, the Company filed a new base shelf prospectus in the
second quarter of 2024. The Company has no present intention to
offer securities pursuant to the base shelf prospectus and the
notice set out in this paragraph does not constitute an offer of
any securities for sale or an offer to sell or the solicitation of
an offer to buy any securities.
_________________________________
|
13 Net
debt is a non-GAAP measure that is not a standardized financial
measure under IFRS. For a description of the composition and
usefulness of this non-GAAP measure and a reconciliation to
long-term debt, see "Note Regarding Certain Measures of
Performance" below.
|
Hedges
Approximately 73% of the Company's remaining estimated Canadian
dollar exposure for 2024 is hedged at an average floor price
providing protection above 1.34
C$/US$. Approximately 27% of the Company's remaining
estimated Euro exposure for 2024 is hedged at an average floor
price providing protection below 1.10
US$/EUR. Approximately 62% of the Company's remaining
Australian dollar exposure for 2024 is hedged at an average floor
price providing protection above 1.46
A$/US$. Approximately 21% of the Company's remaining
estimated Mexican peso exposure for 2024 is hedged at an average
floor price providing protection above 18.00
MXP/US$. The Company's full year 2024 cost guidance is based
on assumed exchange rates of 1.34
C$/US$, 1.10 US$/EUR,
1.45 A$/US$ and 16.50 MXP/US$.
With the 2024 sealift underway at the Company's Nunavut operations, approximately 66% of the
total diesel purchases have been completed, with initial deliveries
in progress. Factoring in these purchases and anticipated
deliveries, approximately 40% of the Company's remaining estimated
diesel exposure for 2024 is hedged at an average price of
$0.76 per litre (excluding
transportation and taxes), which is expected to reduce the
Company's exposure to diesel price volatility in 2024. The
Company's full year 2024 cost guidance is based on an assumed
diesel price of $0.80 per litre
(excluding transportation and taxes).
The Company will continue to monitor market conditions and
anticipates continuing to opportunistically add to its operating
currency and diesel hedges to strategically support its key input
costs. Hedging positions are not factored into 2024 or future
guidance.
Shareholder Returns
Dividend Record and Payment Dates for the Third Quarter of
2024
Agnico Eagle's Board of Directors has declared a quarterly cash
dividend of $0.40 per common share,
payable on September 16, 2024 to
shareholders of record as of August 30,
2024. Agnico Eagle has declared a cash dividend every year
since 1983.
Expected Dividend Record and Payment Dates for the 2024
Fiscal Year
Record
Date
|
Payment
Date
|
March 1,
2024*
|
March 15,
2024*
|
May 31,
2024*
|
June 14,
2024*
|
August 30,
2024**
|
September 16,
2024**
|
November 29,
2024
|
December 16,
2024
|
Dividend Reinvestment Plan
Subsequent to the end of the second quarter of 2024, the
Company's board of directors approved an amendment to the terms of
its dividend reinvestment plan (the "DRIP") to provide the Company
with the flexibility to adjust the discount provided under the DRIP
to between no discount (0%) and 5%. The changes remain subject to
pre-clearance by the Toronto Stock Exchange (the "TSX"). For the
dividend payable on September 16,
2024 to shareholders of record as of August 30, 2024, provided the Company has
received TSX pre-clearance for the amendment, the Company has
determined that the discount provided for under the DRIP will be
1%. If the discount is altered or eliminated by the Company in the
future, the Company will include information regarding the change
in discount from such level in a news release prior to the
effectiveness of the change.
For a copy of the amended and restated DRIP, which will be
posted on receipt of TSX pre-clearance of the amendment, and for
additional information on the Company's DRIP see: Dividend
Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency
exchange program, please contact Computershare Trust Company of
Canada by phone at 1.800.564.6253
or online at www.investorcentre.com or
www.computershare.com/investor.
Normal Course Issuer Bid
In addition to the quarterly dividend, the Company believes that
its NCIB is a flexible and complementary tool that is part of the
Company's overall capital allocation program and that generates
value for shareholders. The Company received approval from the TSX
to renew its NCIB in May 2024,
allowing the Company to purchase up to $500.0 million of its common shares, subject to a
maximum of 5% of its issued and outstanding common shares.
Purchases under the NCIB may continue for up to one year from the
commencement day on May 4, 2024. In
the second quarter of 2024, the Company repurchased 763,043 common
shares for an aggregate of $50.0
million through the NCIB, totalling 1,138,043 common shares
repurchased for an aggregate of $69.9
million in the first six months of 2024.
Environment, Social and Governance Highlights
Reconciliation Action Plan
On July 10, 2024, the Company
released its first Reconciliation Action Plan, reinforcing its
commitment to reconciliation with Indigenous Peoples and
communities. To the Company's knowledge, it is the first mining
company in Canada to publish a
reconciliation action plan.
The Company's reconciliation efforts, which began in
Canada, have now expanded globally
with many of its operations and offices situated on the traditional
territories of different Indigenous Peoples. Agnico Eagleʹs
commitment to reconciliation with Indigenous communities is built
on three fundamental principles that have shaped the Company for
over 65 years: (i) doing what's right, (ii) respecting the rights
of all individuals and groups, and (iii) creating value for
stakeholders. These principles are reflected in the Reconciliation
Action Plan, which was developed in collaboration with Indigenous
communities and following consultations with over 250 employees,
stakeholders and rights holders.
Organized into seven pillars that form the basis for the
Company's actions, the Reconciliation Action Plan aligns with the
United Nations Declaration on the Rights of Indigenous People and
integrates the Company's existing Indigenous programs and
initiatives into a central and comprehensive strategy aimed at
delivering tangible benefits for Indigenous Peoples. It complements
and strengthens the Company's ongoing efforts aimed at contributing
to the economic, social and emotional well-being of Indigenous
Peoples and communities.
Agnico Eagle's Reconciliation Action Plan with Indigenous
Peoples is available on the Company's website at
www.agnicoeagle.com or can be downloaded directly by clicking
here.
Dja Dja Wurrung Agreement Signed for Fosterville
On May 13, 2024, Agnico Eagle and
leaders of the Dja Dja Wurrung People ("Djaara") celebrated the
signing of a historic agreement at Fosterville to develop and maintain a
long-term relationship based on trust, mutual respect and
collaboration. The agreement is called bakaru wayaparrangu,
which means "in the middle, we all meet" in the Dja Dja Wurrung
language. The agreement is the first to be established in the state
of Victoria, Australia between
traditional owners and a Company with an active mining operation.
The agreement includes measures to increase the Djaara's
involvement in activities at Fosterville including training and employment
opportunities, fostering business growth and safeguarding the
environment, and is complemented by annual financial
contributions.
2023 Climate Action Report
On July 31, 2024, the Company
released its 2023 Climate Action Report, which provides an update
regarding the Company's 2023 greenhouse gas ("GHG") emissions
performance, climate strategy and progress achieved towards climate
goals. The report is aligned with the recommendations of the Task
Force on Climate-related Financial Disclosures and Towards
Sustainable Mining Climate Change protocol, and supplements the
Company's 2023 Sustainability Report released in April 2024.
Highlights of the 2023 Climate Action Report include:
- GHG Emissions Targets – Agnico Eagle remains committed
to achieving Net-Zero in absolute Scope 1 and Scope 2 carbon
emissions by 2050 and maintains its interim carbon reduction target
of 30% by 2030 (based on a 2021 baseline)
- Industry Leader for GHG Emissions Intensity (Scope 1 and
2) – The Company continues to be a gold industry leader with
one of the lowest GHG emissions intensities amongst medium and
large gold producers globally. In 2023, the Company's global
average GHG emissions intensity was 0.38 tonnes of CO2
equivalent per ounce of gold produced and all 11 active operations
outperformed the 2022 industry average14. In
2023, GHG emissions decreased by 3% compared to 2022 and 5%
compared to the Company's 2021 baseline
- Supplier Engagement – Agnico Eagle has improved its
Scope 3 methodology to incorporate updated and location-specific
emission factors. The Company advanced its supplier engagement
program to prioritize decarbonization partnership opportunities
with its global supply chain, support improved understanding and
increased data availability and to inform decision-making with a
view to increasing the Company's climate resilience and reducing
Scope 3 emissions
- Decarbonization Strategy – Agnico Eagle prioritizes
investments in technological innovation to support decarbonization
focused on (i) energy efficiency, (ii) technology transition, which
includes the increased use of battery electric vehicles across
multiple operations, and (iii) renewable energy usage, which
includes the deployment of cleaner power supplies at operations.
Pinos Altos continues to maintain
its power purchase agreement to obtain solar-generated electricity,
and Kittila entered into a Certificate of Origin agreement to
obtain 100% of its grid energy from zero-emission sources
- Climate Action Corporate Standard – The Company rolled
out a Climate Action Corporate Standard establishing a
comprehensive process to identify, assess and manage
climate-related risks and opportunities across operations, provide
guidance for the development of site Climate Action Plans and
establish consistent GHG accounting practices for Scope 1, 2 and 3
emissions
- Climate Transition Assessments – Transition risk
assessments have been completed for each operation with the support
of subject matter experts. Learnings will be used in building site
resilience and in engaging with employees and communities
Agnico Eagle's 2023 Climate Action Report is available on the
Company's website at www.agnicoeagle.com or can be downloaded
directly by clicking here.
_________________________________
|
14 Industry average of 0.83 tonnes of
CO2 equivalent for Scope 1 and 2 emissions per ounce of gold
produced, as per S&P Global Market Intelligence
(2022)
|
Update on Key Value Drivers and Pipeline Projects
Highlights on key value drivers, including Upper Beaver,
Odyssey, Detour Lake underground, Hope Bay and San Nicolás are set
out below. Details on certain mine expansion projects (Detour Lake
mill optimization, Meliadine Phase 2 expansion and Amaruq
underground) are set out in the applicable operational sections of
this news release.
Upper Beaver Project
An internal evaluation of the Upper Beaver project was completed
in June 2024. The study shows solid
risk-adjusted economic returns for a standalone mine and mill
scenario, based on a 5,000 tpd production rate. The main highlights
of this study are set out below.
The forecast parameters surrounding the internal evaluation at
the Upper Beaver project were based on a preliminary economic
assessment, which is preliminary in nature and includes inferred
mineral resources that are too speculative geologically to have
economic considerations applied to them that would enable them to
be categorized as mineral reserves and there is no certainty that
the forecast production amounts or other outcomes will be realized.
The basis for the preliminary economic assessment and the
qualifications and assumptions made by the Qualified Persons who
undertook the preliminary economic assessment are set out in this
news release. The impact of the results of the preliminary economic
assessment on the results of any pre-feasibility or feasibility
study in respect of Upper Beaver are described in the Appendix
under "MRMR update for Upper Beaver gold-copper project" and
below.
Project Description
The Upper Beaver gold-copper project is located in the township
of Gauthier, in northeastern Ontario,
Canada, approximately 25 kilometres to the east of the town
of Kirkland Lake. It is hosted in
the Kirkland Lake-Larder Lake mining district, within the
Company's large Kirkland Lake
camp. The district has a continuous history of mineral exploration
and mining spanning more than 110 years and with an aggregate of
over 42 million ounces of gold produced by various producers. The
Company's property portfolio in the Kirkland Lake camp is comprised of
approximately 34,000 hectares, is approximately 35 kilometres
long by 17 kilometres wide and includes Macassa, the satellite Near
Surface and AK deposits, all of the past producing mines along the
Main Break and several other past producing mines and several gold
deposits, including Upper Beaver, Upper
Canada and Anoki-McBean.
The Upper Beaver deposit's gold-copper mineralization is mainly
hosted in the Upper Beaver alkalic intrusive complex and the
surrounding basalts it intruded, and is associated with
disseminated pyrite and chalcopyrite, and magnetite-sulphide
veining associated with strong magmatic-hydrothermal alteration.
The mineralization occurs as elongated tabular bodies that strike
northeast, dip steeply northwest and plunge 65 degrees to the
northeast. The mineralization has been defined along a 400-metre
strike length from surface to a depth of 2,000 metres and it
remains open at depth.
The mineral reserve and mineral resource estimate at the Upper
Beaver project has been updated to June 30,
2024 from the previous estimate at year-end 2023. The new
estimate incorporates additional drill results, totalling 226,418
metres in 441 holes, and employs an improved mining concept with
updated assumptions and drillhole database to reflect progress in
the exploration program, project studies and optimization efforts.
In the updated estimate, the mineral reserves have been
reclassified as mineral resources that are supported by a positive
internal preliminary economic assessment, which includes both
indicated mineral resources and inferred mineral resources, that
was completed in June 2024. As
additional geotechnical fieldwork and metallurgical test work
is completed through the remainder of the year, the Company
anticipates that most indicated mineral resources will be converted
into probable mineral reserves at year-end 2024.
A breakdown of the mineral resources used in the internal study
is set out in the table below. Additional details on the Upper
Beaver mineral resources at June 30,
2024 are set out in the Appendix of this news release.
Additional details on the Upper Beaver mineral reserves and mineral
resources at December 31, 2023, are
set out in the Appendix and in the Company's news release dated
February 15, 2024.
Category
|
Mineral Resources as
at June 30, 2024
|
000
Tonnes
|
Au
(g/t)
|
Au
(000
oz)
|
Cu
(%)
|
Cu
(000
tonnes)
|
Indicated Mineral
Resources (Open Pit)
|
3,326
|
1.85
|
198
|
0.14
|
5
|
Indicated Mineral
Resources (Underground)
|
27,550
|
3.66
|
3,242
|
0.24
|
66
|
Total Indicated
Mineral
Resources
|
30,876
|
3.47
|
3,440
|
0.23
|
71
|
Inferred Mineral
Resources (Open Pit)
|
—
|
—
|
—
|
—
|
—
|
Inferred Mineral
Resources (Underground)
|
2,959
|
4.13
|
393
|
0.36
|
11
|
Total Inferred
Mineral
Resources
|
2,959
|
4.13
|
393
|
0.36
|
11
|
The mining strategy developed for the Upper Beaver project is to
mine the deposit mainly by conventional underground methods,
although a small portion (approximately 10% of the mineral
resource) will be mined via an open pit. The underground and open
pit mines are expected to be developed within the same time
frame.
Open pit operations will employ conventional methods of
drilling, blasting and loading by excavator and wheel loader, with
material haulage by truck to the various stockpiles, waste dump or
directly to a crusher. Under current scenarios, production from the
open pit is expected to occur from 2030 to 2034 at an average rate
of approximately 2,000 tpd, of which 500 tpd will be stockpiled for
later processing.
Current scenarios contemplate underground access through a main
decline ramp as well as a shaft that is 1,220 metres deep and six
metres in diameter. Four main stations are planned along the shaft,
including a loading station at the bottom of the shaft. Ore and
waste above 430 metres depth will be hauled to surface by trucks
via the ramp. Ore and waste below 430 metres depth will be managed
mainly through an ore and waste pass system and skipped to surface
via the shaft. The underground mining concept is based on a long
hole open stoping method, with sublevels every 30 metres and with
stopes to be backfilled with paste and waste rock. The project is
expected to use a combination of conventional and automated
equipment, similar to what is currently used at the Company's mines
in the region. Production from underground, via ramp and shaft,
could begin as early as 2030 and ramp-up to an average rate of
approximately 4,500 tpd in 2035.
The plant is anticipated to use a conventional milling process,
including a gravity circuit and a copper flotation circuit, with a
design capacity of 5,000 tpd, an average total gold recovery
of 95.0% and an average copper recovery of 81.0%. A copper
concentrate will be produced with an expected copper content of
approximately 20%. Approximately 36% of the gold is expected to
report to the copper concentrate and approximately 59% of the gold
is expected to be produced in the form of gold doré. Tailings will
partly be returned underground as paste fill, with the remainder
being disposed on a dry stack tailings storage facility.
Located in the Abitibi region, where the Company believes it has
a demonstrated competitive advantage, the Company expects the
project will benefit from internal technical expertise, local
workforce and other regional support and synergies, including
procurement and warehousing. The Company believes its strong
presence in the region lowers the execution risk for the
construction and operation of the project.
The Company believes Upper Beaver has the potential to produce
an annual average of approximately 210,000 ounces of gold and 3,600
tonnes of copper, with initial production possible as early as
2030. Over an expected 13-year mine life, total payable gold and
copper production are expected to be approximately 2.8 million
ounces and 46,300 tonnes, respectively. The total cash costs per
ounce on a by-product basis and AISC per ounce on a by-product
basis are expected to be approximately $592 and $733,
respectively. Initial capital costs are estimated at approximately
$0.9 billion. Total sustaining
capital expenditures are estimated at approximately $396 million.
Using a gold price of $1,900 per
ounce, and a C$/US$ foreign exchange rate of 1.34, the Upper Beaver
project has an after-tax internal rate of return ("IRR") of 14% and
an after-tax NPV (at a 5% discount rate) of approximately
$625 million. Using a gold price of
$2,300 per ounce, and a C$/US$
foreign exchange rate of 1.34, the Upper Beaver project has an
after-tax IRR of 18% and an after-tax NPV (at a 5% discount rate)
of approximately $1.01 billion.
Additional details on the project are set out in the table
below.
An agreement with local indigenous communities and environmental
permits are in place for the advanced exploration phase of the
project, including for the development of an exploration ramp and
an exploration shaft and the collection of two bulk samples.
Negotiations with indigenous communities are ongoing to establish
an agreement for the production phase if a development decision is
made. The Company is also advancing environmental impact
assessments required for the Federal and Provincial approvals and
permits that will be required for the construction and production
phases following a development decision.
Upper Beaver Project
Summary
|
|
|
|
|
(All numbers are
approximate)
|
|
|
|
|
Estimated total
production
|
|
2.8
|
million ounces of
gold
|
|
|
46.3
|
thousand tonnes of
copper
|
Average metallurgical
recovery
|
|
58.5
|
%
|
average life of mine
for gold doré
|
|
|
36.5
|
%
|
average life of mine
for gold in concentrate
|
|
|
95.0
|
%
|
average life of mine
total gold recovery
|
|
|
81.4
|
%
|
average life of mine
for copper in concentrate
|
Copper in copper
concentrate
|
|
20
|
%
|
|
Payable
metal
|
|
100
|
%
|
gold doré
|
|
|
96.5
|
%
|
gold in
concentrate
|
|
|
94.6
|
%
|
copper
concentrate
|
Refining
costs
|
|
$2.00
|
/ oz
|
|
|
$275.00
|
/ tonne of copper
concentrate
|
Average annual gold
production
|
2030
|
84,000
|
oz (937kt at 2.98 g/t
Au and 0.20% Cu)
|
|
2031
|
175,000
|
oz (1,670kt at 3.48 g/t
Au and 0.21% Cu)
|
2032-2041
(average)
|
220,000
|
oz (1,795kt at 4.07 g/t
Au and 0.26% Cu)
|
|
2042
|
191,000
|
oz (1,475kt at 4.30 g/t
Au and 0.28% Cu)
|
|
2043
|
162,000
|
oz (1,270kt at 4.24 g/t
Au and 0.28% Cu)
|
Royalty
|
|
3.5
|
%
|
NSR
|
Minesite costs per
tonne
|
2030
|
$151
|
C$/t (includes
royalty)
|
2031-2043
(average)
|
$114
|
C$/t (includes
royalty)
|
Average total cash
costs on a by-product basis
|
$592
|
/oz
|
Average AISC on a
by-product basis
|
|
$733
|
/oz
|
Mine life
|
|
13
|
years
|
Capital
Expenditures
|
|
|
|
|
Development
capital
|
H2 2024
|
$35
|
million
|
|
2025
|
$85
|
million
|
|
2026
|
$70
|
million
|
|
2027
|
$100
|
million
|
|
2028
|
$360
|
million
|
|
2029
|
$245
|
million
|
Sustaining
capital
|
2030
|
$90
|
million
|
2031-2037
(average)
|
$33
|
million
|
2038-2042
(average)
|
$15
|
million
|
Total
|
|
$1,286
|
million
|
Reclamation
Costs
|
|
$11
|
million
|
Economic
Assumptions:
|
|
|
|
|
Gold Price
|
|
$1,900
|
/oz
|
Copper Price
|
|
$4.00
|
/lb ($8,819 /
tonne)
|
USD:CAD
|
|
1.34
|
|
Effective tax
rate
|
|
32
|
%
|
|
Based on the positive result of the internal evaluation and
taking a measured approach, the Company has approved a $200.0 million investment over approximately
three years to further de-risk the project. With this investment,
the Company intends to develop an exploration ramp and an
exploration shaft to depths of 160 metres and 760 metres,
respectively, to establish underground drilling platforms and to
collect bulk samples from the two most representative geological
zones of the Upper Beaver deposit. The exploration ramp and
exploration shaft will be sized to accommodate the potential
production phase and are included in the initial capital
expenditures estimate of approximately $0.9
billion.
Of the $200.0 million,
approximately $35.0 million is
forecast to be spent in the second half 2024, related primarily to
the upgrade of the access road to the site, site surface
preparation, construction of site facilities and excavation of the
shaft collar. Preparatory site work commenced in early 2024 and
approximately $15.0 million was spent
in the first half of 2024. Excavation of the ramp and shaft sinking
are expected to start in the second half of 2025.
Exploration Upside
Exploration results from recent years at Upper Beaver show the
potential to increase the mineral resources and to convert inferred
mineral resources at depth using underground access via the
proposed exploration shaft and other underground
infrastructure.
In the next stage of development, a bulk sampling program is
planned in the two most representative geological zones of the
Upper Beaver deposit. The first bulk sample will be taken from the
upper level of the deposit, which is dominated by basaltic hosting
lithologies, and will have the objective of testing selective
mining assumptions in this area of the deposit. The second bulk
sample will be taken from the lower level of the deposit, which is
dominated by intrusion-suite hosting rocks, with the objective of
validating mining parameters and grade variability at greater
depth.
The Company believes the Upper Beaver project holds significant
growth and synergy potential. The main deposit remains open at
depth, as demonstrated by historical hole KLUB19-452W1 (presented
in the Company's news release dated April
25, 2019), which intersected 7.6 g/t gold and 0.36% copper
over 3.4 metres at 1,983 metres depth and 1.2 g/t gold and 1.39%
copper over 7.1 metres at 2,041 metres depth, approximately 300
metres down plunge from the nearest mineral resource block.
Additionally, multiple intrusions of similar nature to that
associated with the emplacement of the Upper Beaver deposit have
been identified in the immediate vicinity of the project. These
intrusions are undergoing early-stage exploration efforts with the
objective of developing targets for future regional diamond
drilling programs.
[Upper Beaver – Composite
Longitudinal Section]
Regional Potential
As a part of an Ontario
regional exploration budget for 2024 totalling $13.5 million for 19,400 metres of drilling, a
planned surface exploration campaign has included drill holes to
test the deep extensions of the Main Break east of the underground
infrastructure of the SMC at Macassa and below historical mining
levels of the Kirkland Lake camp
to provide support for future underground exploration drifts.
Opportunities for future synergies in the Kirkland Lake camp include multiple known
deposits owned by the Company. The nearest deposit to Upper Beaver
is the Upper Canada past-producing
gold mine, which lies 6 kilometres west-southwest. As at
December 31, 2023, Upper Canada was estimated to contain 10.4
million tonnes of indicated mineral resources grading 2.15 g/t gold
for 722,000 ounces of gold and 18.6 million tonnes of inferred
mineral resources grading 3.11 g/t gold for 1.9 million ounces of
gold, in open pit and underground mineral resources.
The Anoki-McBean deposits lie 6.5 kilometres southwest of Upper
Beaver and host indicated mineral resources of 3.9 million tonnes
grading 2.77 g/t gold for 349,000 ounces of gold and inferred
mineral resources of 867,000 tonnes grading 3.84 g/t gold for
107,000 ounces of gold as at December 31,
2023.
Several other historical mineralized occurrences in the
Kirkland Lake camp warrant
additional exploration with the objective of potentially providing
future mill feed at either Macassa and/or the Upper Beaver project,
while benefiting from synergies with existing or future mining
operations.
[Kirkland Lake Regional – Property and
Geology Map]
Odyssey Project
In the second quarter of 2024, ramp development continued to
exceed targets, reaching the third production level of East Gouldie
(a depth of 832 metres) as at June 30,
2024. Equipment remotely tele-operated from surface (scoops,
trucks, jumbos and cable bolters) has helped maintain the
development performance, offsetting the increase in depth. The
Company continued to develop the main ventilation system, with the
completion of the future exhaust raise between levels 26 and 36 and
the development of the fresh air ramp between Odyssey South and
East Gouldie.
In the second quarter of 2024, shaft sinking activities advanced
at an average rate of 2.5 metres per day, slightly ahead of target,
and as at June 30, 2024, the shaft
reached a depth of 680 metres. The pre-sinking of the shaft between
levels 54 and 66 was completed in the second quarter and the
remainder of the shaft will be excavated by conventional sinking
methods. The excavation of station 54 was completed in the quarter
and the excavation of the temporary loading pocket between levels
60 and 64 is ongoing, with construction expected to be initiated in
September 2024 and commissioning
expected in mid-2025.
Surface construction progressed as planned and on budget in the
second quarter of 2024. Areas of focus included the main hoist
building, phase 2 of the paste plant (to expand capacity to 20,000
tpd) and the operational complex. At the main hoist building,
installation of the mechanical components of the service hoist was
completed in the second quarter of 2024 and the installation of the
electrical components and controls is ongoing. The conceptual
engineering for the paste plant expansion was completed in the
second quarter of 2024 and detailed engineering has started. The
contractor for the construction of the main office and service
building was selected and is expected to be on site in the third
quarter of 2024 with construction expected to be completed by the
end of 2025.
Exploration drilling at Odyssey totalled 24,182 metres during
the second quarter (50,442 metres during the first half of 2024)
with seven underground drill rigs and six surface drill rigs in
operation, primarily targeting the East Gouldie and Odyssey
deposits.
Drilling into the lower eastern extension of the East Gouldie
mineralized envelope produced highlights that included: hole
MEX24-311 returning 4.5 g/t gold over 6.5 metres at 1,571 metres
depth, 770 metres east of the East Gouldie mineral reserves; hole
MEX24-311Z returning 8.7 g/t gold over 3.8 metres at 1,687 metres
depth, approximately 110 metres below hole MEX24-311; and hole
MEX23-310ZA returning 2.3 g/t gold over 15.3 metres at 1,694 metres
depth, 410 metres east of the mineral reserves.
The drilling remains on track to achieve a 150-metre drill
spacing in an area that spans over 900 metres in strike length and
700 metres in elevation in the eastern extension of East Gouldie,
with the objective of adding new inferred mineral resources for
year-end 2024.
Drilling into a previously untested gap in the western extension
of the East Gouldie deposit also intersected significant results,
with hole MEX24-312 returning 2.5 g/t gold over 30.0 metres at
1,473 metres depth, 85 metres west of the East Gouldie mineral
reserves; and hole MEX24-312Z returning 2.2 g/t gold over 10.5
metres at 1,414 metres depth, 260 metres west of the mineral
reserves. These results are anticipated to have a positive impact
on the mineral resource estimate at year-end 2024.
At a shallower depth, hole MEX24-314 intersected 2.8 g/t gold
over 11.4 metres at 335 metres depth, including 9.8 g/t gold over
2.0 metres at 329 metres depth, in a potential extension of the
East Malartic deposit. Follow-up
drilling is planned in this new area of interest before the end of
the year.
Selected recent drill intercepts from the East Gouldie and
East Malartic deposits at the
Odyssey mine are set out in the table and composite longitudinal
section below.
Drill hole
|
Deposit
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
MEX23-310ZA
|
East Gouldie
|
1,928.1
|
1,945.4
|
1,694
|
15.3
|
2.3
|
2.3
|
MEX24-311
|
East Gouldie
|
1,890.5
|
1,897.5
|
1,571
|
6.5
|
4.5
|
4.5
|
MEX24-311Z
|
East Gouldie
|
1,971.3
|
1,975.7
|
1,687
|
3.8
|
8.7
|
8.7
|
MEX24-312
|
East Gouldie
|
1,634.0
|
1,666.4
|
1,473
|
30.0
|
2.5
|
2.5
|
MEX24-312Z
|
East Gouldie
|
1,626.8
|
1,638.0
|
1,414
|
10.5
|
2.2
|
2.2
|
MEX24-314
|
East
Malartic
|
421.0
|
441.0
|
335
|
11.4
|
2.8
|
2.8
|
including
|
|
421.0
|
424.5
|
329
|
2.0
|
9.8
|
9.8
|
*Results from East
Gouldie and East Malartic use capping factors of 20 g/t gold and 40
g/t gold, respectively.
|
[Odyssey mine – Composite Longitudinal
Section]
Based on the positive results from the exploration program near
the Odyssey mine during the first half of 2024, the Company has
approved a supplemental exploration budget of $12.0 million for 68,000 metres of near-mine
drilling during the second half of the year. The objective is to
further expand the East Gouldie deposit footprint laterally and add
inferred mineral resources in support of a potential future Shaft
#2 and the broader "Fill the Mill" strategy at the Canadian
Malartic complex.
In addition, the regional exploration program at Canadian
Malartic is receiving a supplemental exploration budget of
$4.5 million for 16,500 metres of
additional drilling during the second half of 2024, to further
investigate the eastern portion of the Canadian Malartic property
package in support of the Fill the Mill strategy.
These supplemental budgets are in addition to the Company's
previously disclosed exploration budget for 2024 at Canadian
Malartic of approximately $20.4
million for 137,000 metres of drilling at Odyssey and at
regional targets.
Detour Lake
On June 19, 2024, the Company
released the results of a technical study reflecting the potential
for a concurrent underground operation to accelerate access to
higher grade ore and to increase annual production to approximately
one million ounces for 14 years starting in 2030 (see the Company's
news release dated June 19,
2024).
The technical study assumed an underground mining rate of
approximately 11,200 tpd (equivalent to 4.0 million tonnes per
annum ("Mtpa")) starting in 2030, combined with a mill expansion to
79,450 tpd (equivalent to 29 Mtpa) starting in 2028. Annual
production is expected to increase by approximately 43% or 300,000
ounces of gold per year, from 2030 to 2043 to approximately one
million ounces per year when compared to average annual production
in years 2024 to 2029. The underground project and mill throughput
optimization to 29 Mtpa are expected to generate an after-tax IRR
of approximately 18% using a gold price assumption of $1,900 per ounce and a C$/US$ foreign exchange
rate of 1.34. At a gold price assumption of $2,300 per ounce and a C$/US$ foreign exchange
rate of 1.34, the underground project and mill throughput
optimization to 29 Mtpa are expected to generate an after-tax IRR
of approximately 25%.
Based on strong risk-adjusted returns for the Detour Lake
underground project, the Company has approved a $100.0 million investment over approximately
three years to develop a 2.0-kilometre exploration ramp to a depth
of 270 metres in order to collect a bulk sample and to facilitate
infill and expansion drilling of the current underground mineral
resource. Approximately $19.6 million
is forecast to be spent in the second half of 2024 related to the
construction of surface facilities and site preparation.
Exploration drilling at Detour Lake during the second quarter of
2024 totalled 72,000 metres (130,000 metres during the first half
of 2024), including infill drilling into the newly defined
high-grade corridor at underground depths in the West Pit zone and
infill drilling into the West Pit Extension zone at underground
depths immediately west of the West Pit mineral resources and next
to the proposed exploration ramp for the underground project.
In the high-grade corridor in the West Pit zone, highlights
included: hole DLM24-843 returning 4.0 g/t gold over 22.3 metres at
413 metres depth, including 18.7 g/t gold over 2.1 metres at 414
metres depth; hole DLM24-874 returning 2.5 g/t gold over 10.3
metres at 291 metres depth and 4.4 g/t gold over 30.1 metres at 550
metres depth, including 17.6 g/t gold over 3.9 metres at 557 metres
depth; and hole DLM24-897E returning 26.9 g/t gold over 2.8 metres
at 235 metres depth and 3.3 g/t gold over 11.1 metres at 261 metres
depth.
To the west in the West Pit zone near the proposed exploration
ramp, highlights included: hole DLM24-873 returning 37.3 g/t gold
over 3.5 metres at 282 metres depth; and hole DLM24-930A returning
20.6 g/t gold over 5.5 metres at 280 metres depth and 1.8 g/t gold
over 60.5 metres at 348 metres depth.
From infill drilling into the West Pit Extension zone,
highlights included: hole DLM24-884 returning 4.3 g/t gold over
22.5 metres at 429 metres depth, including 24.5 g/t gold over 3.5
metres at 432 metres depth, and 3.7 g/t gold over 13.4 metres at
551 metres depth; hole DLM24-895AW returning 28.8 g/t gold over 3.6
metres at 570 metres depth; and hole DLM24-873 returning 37.3 g/t
gold over 3.5 metres at 282 metres depth.
Selected recent drill intercepts from the West Pit Underground
and West Pit Extension zones at Detour Lake are set out in the
table and composite longitudinal section below.
Drill hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)*
|
DLM24-839
|
West Pit
Extension
|
353.0
|
362.0
|
321
|
7.2
|
5.2
|
and
|
West Pit
Extension
|
395.0
|
419.4
|
365
|
19.6
|
3.9
|
including
|
|
398.0
|
402.0
|
358
|
3.2
|
12.6
|
DLM24-843
|
West Pit
Underground
|
505.8
|
530.3
|
413
|
22.3
|
4.0
|
including
|
|
519.2
|
521.5
|
414
|
2.1
|
18.7
|
DLM24-851
|
West Pit
Extension
|
350.0
|
392.3
|
318
|
36.1
|
2.6
|
including
|
|
375.3
|
378.7
|
323
|
2.9
|
23.5
|
DLM24-855
|
West Pit
Extension
|
481.9
|
509.0
|
433
|
22.8
|
2.4
|
including
|
|
486.0
|
495.0
|
429
|
7.6
|
5.1
|
DLM24-860
|
West Pit
Extension
|
583.9
|
619.0
|
524
|
30.2
|
2.2
|
including
|
|
583.9
|
598.0
|
515
|
12.1
|
4.4
|
DLM24-870
|
West Pit
Underground
|
207.6
|
228.0
|
182
|
17.7
|
3.3
|
including
|
|
221.1
|
225.0
|
186
|
3.4
|
11.0
|
DLM24-871
|
West Pit
Underground
|
378.5
|
396.0
|
313
|
15.6
|
4.7
|
including
|
|
378.5
|
383.6
|
309
|
4.5
|
13.6
|
DLM24-873
|
West Pit
Underground
|
346.1
|
350.0
|
282
|
3.5
|
37.3
|
DLM24-874
|
West Pit
Underground
|
385.0
|
396.0
|
291
|
10.3
|
2.5
|
and
|
|
764.0
|
795.0
|
550
|
30.1
|
4.4
|
including
|
|
789.0
|
793.0
|
557
|
3.9
|
17.6
|
DLM24-884
|
West Pit
Underground
|
526.3
|
551.0
|
429
|
22.5
|
4.3
|
including
|
|
540.6
|
544.4
|
432
|
3.5
|
24.5
|
and
|
West Pit
Underground
|
696.0
|
710.5
|
551
|
13.4
|
3.7
|
DLM24-891C
|
West Pit
Underground
|
635.0
|
662.0
|
562
|
23.4
|
1.7
|
including
|
|
650.8
|
662.0
|
569
|
9.7
|
3.4
|
DLM24-895AW
|
West Pit
Extension
|
676.0
|
680.0
|
570
|
3.6
|
28.8
|
DLM24-897E
|
West Pit
Underground
|
305.0
|
308.0
|
235
|
2.8
|
26.9
|
and
|
West Pit
Underground
|
336.0
|
348.0
|
261
|
11.1
|
3.3
|
DLM24-899A
|
West Pit
Extension
|
578.0
|
595.9
|
495
|
15.8
|
4.4
|
DLM24-903
|
West Pit
Extension
|
403.0
|
418.0
|
344
|
13.2
|
3.6
|
and
|
|
438.0
|
446.8
|
369
|
7.8
|
12.8
|
DLM24-908E
|
West Pit
Underground
|
727.0
|
775.0
|
576
|
45.6
|
2.1
|
including
|
|
764.0
|
774.0
|
589
|
9.5
|
6.5
|
and
|
West Pit
Underground
|
791.0
|
819.0
|
613
|
26.7
|
2.1
|
including
|
|
800.0
|
808.0
|
612
|
7.6
|
5.5
|
DLM24-911A
|
West Pit
Extension
|
722.3
|
750.2
|
636
|
24.6
|
2.4
|
including
|
|
730.9
|
734.0
|
633
|
2.7
|
13.9
|
and
|
West Pit
Extension
|
761.0
|
792.0
|
668
|
27.4
|
2.4
|
including
|
|
779.8
|
782.9
|
672
|
2.7
|
16.8
|
and
|
West Pit
Extension
|
827.6
|
835.0
|
711
|
6.6
|
9.5
|
DLM24-916W
|
West Pit
Extension
|
460.7
|
498.1
|
408
|
32.2
|
3.2
|
including
|
|
486.8
|
491.7
|
416
|
4.2
|
12.8
|
DLM24-923
|
West Pit
Extension
|
603.4
|
630.0
|
520
|
23.2
|
3.3
|
including
|
|
603.4
|
606.5
|
520
|
2.7
|
17.4
|
DLM24-927
|
West Pit
Extension
|
445.8
|
450.7
|
375
|
4.3
|
15.7
|
DLM24-930A
|
West Pit
Underground
|
349.0
|
355.0
|
280
|
5.5
|
20.6
|
and
|
West Pit
Underground
|
411.0
|
476.4
|
348
|
60.5
|
1.8
|
*Results from Detour
Lake are uncapped.
|
[Detour Lake – Composite Longitudinal
Section]
Further details on the mine-site and regional exploration
programs at Detour Lake in 2024 are set out in the Detour
Lake-focused news release dated June 19,
2024.
With the success of the exploration program at Detour Lake
during the first half of the year, the Company has approved a
supplemental exploration budget of $10.9
million for 55,000 metres of drilling during the second half
of 2024 to infill and expand the underground high-grade corridor to
accelerate the de-risking of the underground project. This is in
addition to the previously disclosed exploration budget for 2024 at
Detour Lake of $27.7 million for
160,000 metres of drilling.
Hope Bay – Step-Out Drilling Continues to Extend Madrid's
High-Grade Patch 7 Zone at Depth and Laterally
Exploration drilling at Hope Bay during the second quarter of
2024 totalled 35,400 metres (66,100 metres during the first half of
2024) and continued to return strong results at the Madrid deposit within the Patch 7 zone and in
the gap area between the Patch 7 and Suluk zones.
Infill drilling into the high-grade shoot immediately north of
the Patch 7 mineral resource was highlighted by hole HBM24-206A
returning 26.7 g/t gold over 2.8 metres at 405 metres depth,
including 75.0 g/t gold over 0.9 metres at 404 metres depth, and
17.0 g/t gold over 25.8 metres at 419 metres depth, including 35.6
g/t gold over 6.5 metres at 412 metres depth; hole HBM24-207
returning 7.2 g/t gold over 8.1 metres at 559 metres depth,
including 8.7 g/t gold over 4.5 metres at 558 metres depth; and
hole HBM24-209 returning 30.8 g/t gold over 2.4 metres at 559
metres depth.
The high-grade shoot remains open both up-plunge and down-plunge
with significant potential for mineral resource expansion.
This emerging new mineralized area continues to show excellent
continuity as well as grades and thicknesses greater than average
for the Madrid deposit. It is
anticipated that the drilling program in this area in 2024 will
have positive impacts on the mineral resource estimate at year-end
2024 and on mining scenarios for potential project
redevelopment.
At shallower depths in the same area of Patch 7, hole HBM24-191
returned 9.7 g/t gold over 6.3 metres at 242 metres depth and hole
HBM24-201 returned 5.3 g/t gold over 18.0 metres at 278 metres
depth. Drilling in this shallower area is confirming the presence
of the same structures and favourable host rocks encountered in the
main Patch 7 mineral resources located several hundred metres to
the south.
Exploration during the second quarter also included widely
spaced, expansion drilling at greater depth approximately 600
metres to the north in the largely untested gap area between the
Patch 7 and Suluk zones, highlighted by hole HBM24-177B returning 9.5 g/t gold over 8.6 metres at
750 metres depth, including 15.5 g/t gold over 3.7 metres at 753
metres depth; and hole HBM24-183 returning 14.1 g/t gold over 5.0
metres at 577 metres depth, including 25.1 g/t gold over 2.3 metres
at 575 metres depth.
Selected recent drill intercepts from the Patch 7 zone at the
Madrid deposit are set out in the
table and composite longitudinal section below.
Drill hole
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold grade
(g/t)
(capped)*
|
HBM24-177B
|
864.5
|
883.8
|
750
|
8.6
|
9.5
|
9.5
|
including
|
873.9
|
882.0
|
753
|
3.7
|
15.5
|
15.5
|
HBM24-183
|
684.4
|
693.5
|
577
|
5.0
|
19.0
|
14.1
|
including
|
684.4
|
688.6
|
575
|
2.3
|
35.8
|
25.1
|
HBM24-188
|
609.4
|
633.6
|
475
|
15.2
|
5.6
|
5.6
|
including
|
611.0
|
620.0
|
471
|
5.7
|
4.6
|
4.6
|
including
|
626.0
|
633.6
|
481
|
4.8
|
10.9
|
10.9
|
HBM24-189
|
552.3
|
581.8
|
443
|
12.7
|
6.0
|
6.0
|
including
|
552.3
|
575.2
|
441
|
9.9
|
6.9
|
6.9
|
HBM24-191
|
289.1
|
297.0
|
242
|
6.3
|
9.7
|
9.7
|
HBM24-201
|
357.0
|
375.0
|
278
|
18.0
|
10.8
|
5.3
|
HBM24-206A
|
529.0
|
532.0
|
405
|
2.8
|
28.0
|
26.7
|
including
|
529.0
|
530.0
|
404
|
0.9
|
79.0
|
75.0
|
and
|
539.1
|
566.0
|
419
|
25.8
|
20.8
|
17.0
|
including
|
539.1
|
546.0
|
412
|
6.5
|
50.7
|
35.6
|
HBM24-207
|
634.8
|
651.0
|
559
|
8.1
|
7.2
|
7.2
|
including
|
637.1
|
646.1
|
558
|
4.5
|
8.7
|
8.7
|
HBM24-209
|
643.0
|
646.0
|
559
|
2.4
|
53.7
|
30.8
|
*Results from the
Madrid deposit at Hope Bay use a capping factor ranging from 50 g/t
to 75 g/t gold depending on the mineralized domain.
|
[Madrid Deposit at Hope Bay – Composite
Longitudinal Section]
Given the positive drill results at Madrid during the first half of 2024, the
Company has approved a supplemental exploration budget at Hope Bay
for the second half of 2024 of $22.6
million for an additional 62,000 metres of drilling to
infill and expand Patch 7 to accelerate mineral reserve addition in
advance of a potential project decision in 2025-26. This is in
addition to the previously disclosed budget for 2024 at the Hope
Bay project of $22.0 million for
50,000 metres of drilling.
In early July, the Company finalized an asset purchase agreement
with North Arrow Minerals Inc. to acquire a 100% interest in the
Oro gold property in the
northeastern extension of the Hope Bay gold belt for a cash
consideration of C$1.75 million. The
Oro property comprises 4,103
hectares consisting of five leases with multiple, historical
near-surface gold mineralization occurrences.
San Nicolás Copper Project
In the second quarter of 2024, Minas de San Nicolás continued
engagement with government and stakeholders in support of the
permit review and continued to advance feasibility study work, with
plans to initiate detailed engineering in the first half of 2025.
The Minas de San Nicolás team submitted the change of land use
permit application ("ETJ") on June 14,
2024 and a Supplementary Information Package in response to
the regulator's enquiries on their MIA-R permit application ("EIA")
on July 5, 2024. Project approval is
expected to follow, subject to receipt of permits and the results
of the feasibility study.
ABITIBI REGION, QUEBEC
LaRonde – Strong Operational Performance Driven by Higher
Grades; Automation Initiatives at LaRonde Zone 5 Continue to Exceed
Targets
LaRonde – Operating
Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
680
|
|
660
|
|
1,360
|
|
1,368
|
Tonnes of ore milled
per day
|
|
7,473
|
|
7,253
|
|
7,473
|
|
7,558
|
Gold grade
(g/t)
|
|
4.05
|
|
3.82
|
|
3.73
|
|
3.77
|
Gold production
(ounces)
|
|
82,334
|
|
76,780
|
|
150,698
|
|
156,387
|
Production costs per
tonne (C$)
|
|
$
128
|
|
$
174
|
|
$
158
|
|
$
145
|
Minesite costs per
tonne (C$) 15
|
|
$
157
|
|
$
151
|
|
$
157
|
|
$
154
|
Production costs per
ounce
|
|
$
775
|
|
$
1,117
|
|
$ 1,051
|
|
$
944
|
Total cash costs per
ounce
|
|
$
816
|
|
$
884
|
|
$
929
|
|
$
922
|
Gold Production
- Second Quarter of 2024 – Gold production increased when
compared to the prior-year period primarily due to a higher volume
of ore mined and milled driven by strong operational performance
and higher gold grades as expected under the mining sequence,
partially offset by lower recovery
- First Six Months of 2024 – Gold production decreased when
compared to the prior-year period due to lower gold grades and a
lower volume of ore milled
Production Costs
- Second Quarter of 2024 – Production costs per tonne decreased
when compared to the prior-year period primarily due to the higher
volume of ore milled in the current period, partially offset by the
timing of inventory sales and higher milling and royalty costs at
the LaRonde mine. Production costs per ounce decreased when
compared to the prior-year period primarily due to higher gold
grades and lower production costs per tonne
- First Six Months of 2024 – Production costs per tonne increased
when compared to the prior-year period primarily due to stockpile
consumption, the timing of inventory sales, higher milling and
royalty costs at the LaRonde mine and lower volumes of ore milled.
Production costs per ounce increased when compared to the
prior-year period primarily due to higher production costs per
tonne and lower gold grades
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to higher
milling and royalty costs at the LaRonde mine, partially offset by
higher volume of ore milled. Total cash costs per ounce decreased
when compared to the prior-year period primarily due to higher gold
grades, partially offset by higher minesite costs per tonne
- First Six Months of 2024 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to stockpile
consumption and higher milling and royalty costs and lower volume
of ore milled. Total cash costs per ounce increased when compared
to the prior-year period primarily due to lower gold grades and
higher minesite costs per tonne
_______________________________
|
15 Minesite
costs per tonne is a non-GAAP measure that is not standardized
under IFRS and is reported on a per tonne of ore milled
basis. For a description of the composition and usefulness of
this non-GAAP measure and a reconciliation to production costs see
"Note Regarding Certain Measures of Performance" below.
|
Highlights
- Gold production in the quarter was higher than forecast as a
result of higher grades and higher volume milled
- The Company continued its automation initiatives at the LaRonde
zone 5 mine ("LZ5") and exceeded its automation target by 22%.
Approximately 1,800 tpd were moved during the quarter through
automated scoops and trucks, which contributed to the strong
overall performance of the site at an average 3,450 tpd
- The LZ5 processing facility was placed on care and maintenance
during the third quarter of 2023 and is on track to restart in the
third quarter of 2024. During the downtime, the Company continues
to overhaul the facility's leach tanks and is refurbishing the ore
silo. Ore from LZ5 will continue to be processed at the LaRonde
mill until the restart of the LZ5 processing facility
- A shutdown was scheduled for the third quarter of 2024 for 14
days at the LaRonde mine and 11 days at the LaRonde mill and was
completed in July
- On June 24, 2024, a seismic event
of magnitude 4.1 on the Richter scale, occurred at the LaRonde
mine. Safety protocols were followed, the mine was evacuated and no
workers were injured. The dynamic ground support performed as
designed. While the mine was shutdown for approximately two days,
the mill continued to operate at normal levels using surface
stockpiles. Site-specific expertise in mitigating seismic risk has
been developed by the Company over many years of operations at
LaRonde. The Company's objective remains to address the seismic
risk by continuously improving mitigation measures to keep a safe
work environment while maintaining reasonable production rates.
These mitigation measures include non-entry protocols, dynamic
ground support and, increasingly, remote operation from
surface
- At the LaRonde mill, the focus remained on improving mill
recoveries by optimizing the blending of ore from the LaRonde mine,
11-3 zone, LZ5, Goldex and Akasaba West
- During the quarter, LaRonde was recognized for environmental
and social performance, receiving the following awards:
- TSM Excellence Award from the Mining Association of
Canada for the transition to
filtered tailings management – this award acknowledges innovative
projects and initiatives that support sustainable development
- Community relations award from the Quebec Mining Association
("QMA") – recognition of the collaboration agreement with the
Abitibiwinni First Nations and the Nikan Project, which facilitates
integration and retention of Indigenous workers
Canadian Malartic – Higher
Tonnes Milled Drive Strong Production; Record Development Metres
and Production from Odyssey South
Canadian Malartic –
Operating Statistics*
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
5,182
|
|
4,882
|
|
10,355
|
|
9,406
|
Tonnes of ore milled
per day
|
|
56,945
|
|
53,648
|
|
56,896
|
|
51,967
|
Gold grade
(g/t)
|
|
1.17
|
|
1.22
|
|
1.19
|
|
1.21
|
Gold production*
(ounces)
|
|
180,871
|
|
177,755
|
|
367,777
|
|
258,440
|
Production costs per
tonne (C$)
|
|
$
38
|
|
$
40
|
|
$
35
|
|
$
38
|
Minesite costs per
tonne (C$)
|
|
$
42
|
|
$
39
|
|
$
42
|
|
$
39
|
Production costs per
ounce
|
|
$
798
|
|
$
811
|
|
$
737
|
|
$
780
|
Total cash costs per
ounce
|
|
$
871
|
|
$
772
|
|
$
860
|
|
$
779
|
* Gold production
reflects Agnico Eagle's 50% interest in Canadian Malartic up to and
including March 30, 2023 and 100% interest thereafter. Tonnage of
ore milled is reported on a 100% basis for both periods.
|
Gold Production
- Second Quarter of 2024 – Gold production increased when
compared to the prior-year period primarily due to higher
throughput resulting from strong operational performance at the
Barnat pit and Odyssey mine, partially offset by lower gold grades
from increased ore sourced from the low-grade stockpile
- First Six Months of 2024 – Gold production increased when
compared to the prior-year period due to the increase in the
Company's ownership percentage between periods from 50% to 100% as
a result of the closing of the acquisition of the Yamana
Transaction and higher throughput, partially offset by lower gold
grades resulting from increased ore sourced from the low-grade
stockpile
Production Costs
- Second Quarter of 2024 – Production costs per tonne decreased
when compared to the prior-year period primarily due to a higher
volume of ore milled and the timing of inventory adjustments during
the comparative period. Production costs per ounce decreased when
compared to the prior-year period due to more ounces of gold
produced in the current period
- First Six Months of 2024 – Production costs per tonne decreased
when compared to the prior-year period primarily due to a higher
volume of ore milled and the timing of inventory adjustments during
the comparative period. Production costs per ounce decreased when
compared to the prior-year period due to lower production costs
per tonne, partially offset by lower gold grades in the
current period
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne increased
when compared to the prior-year period due to the milling of
low-grade stockpiles and higher royalty costs during the quarter,
partially offset by higher volume of ore milled. Total cash costs
per ounce increased when compared to the prior-year period
primarily due to the same factors that resulted in higher minesite
costs per tonne and lower gold grades in the current period
- First Six Months of 2024 – Minesite costs per tonne increased
when compared to the prior-year period due to the consumption of
low-grade stockpiles and higher royalty costs, partially offset by
higher volume of ore milled. Total cash costs per ounce increased
when compared to the prior-year period primarily due to the same
factors that resulted in higher minesite costs per tonne and lower
gold grades in the current period
Highlights
- Higher mill throughput, higher gold grades from the Barnat pit
due to mine sequencing and higher mill recoveries than planned,
along with the record production from Odyssey, resulted in better
than planned quarterly gold production at Canadian Malartic
- At Odyssey South, total metres developed during the quarter
were a record at 3,870 metres. Gold production and mining rate were
above plan at approximately 22,300 ounces of gold and 3,750 tpd,
respectively. The strong operational performance was supported by
higher than planned equipment availability and the addition of 65
tonne haulage trucks
- Stope reconciliation at Odyssey South remains positive,
primarily from the contribution of the internal zones, which
resulted in approximately 13% more ounces of gold produced than
anticipated during the second quarter
- At the Canadian Malartic pit, the Company continued the
construction of the central berm (approximately 95% complete at
June 30, 2024) in preparation for
in-pit tailings disposal, which began in July 2024
- An extended shutdown at the Canadian Malartic mill is planned
for the third quarter of 2024 totalling 10 days (approximately an
additional 5 days from the original plan) due to the acceleration
of maintenance work on the tailings thickener drive assembly
- An update on the Odyssey mine development, construction and
exploration highlights is set out in the Update on Key Value
Drivers and Pipeline Projects section above
- During the quarter, Canadian Malartic was recognized for its
health and safety performance and received the following awards:
- John T. Ryan Eastern Canada Regional Safety award from the
Canadian Institute of Mining, Metallurgy and Petroleum – awarded to
an open pit mine which experienced the lowest reportable injury
frequency in the previous year
- F.J. O'Connell surface operations award from the QMA –
recognizing workplace health and safety performance of QMA
members
Goldex – Record Tonnage Milled Since Re-Start in 2013;
Production from Deep 2 Zone Commenced
Goldex Complex –
Operating Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
765
|
|
761
|
|
1,525
|
|
1,459
|
Tonnes of ore milled
per day
|
|
8,407
|
|
8,363
|
|
8,379
|
|
8,061
|
Gold grade
(g/t)
|
|
1.62
|
|
1.74
|
|
1.63
|
|
1.74
|
Gold production
(ounces)
|
|
33,750
|
|
37,716
|
|
68,138
|
|
71,739
|
Production costs per
tonne (C$)
|
|
$
59
|
|
$
50
|
|
$
59
|
|
$
52
|
Minesite costs per
tonne (C$)
|
|
$
60
|
|
$
51
|
|
$
60
|
|
$
51
|
Production costs per
ounce
|
|
$
980
|
|
$
747
|
|
$
973
|
|
$
781
|
Total cash costs per
ounce
|
|
$
864
|
|
$
776
|
|
$
906
|
|
$
792
|
Gold Production
- Second Quarter of 2024 – Gold production decreased when
compared to the prior-year period primarily due to lower average
gold grades resulting from increased ore sourced from Akasaba
West
- First Six Months of 2024 – Gold production decreased when
compared to the prior-year period primarily due to lower average
gold grades resulting from increased ore sourced from Akasaba
West, partially offset by a higher volume of ore processed
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs
per tonne increased when compared to the prior-year periods
primarily due to higher underground production costs, higher open
pit mining costs, higher milling costs and a lower deferred
stripping adjustment associated with the Akasaba West project,
partially offset by higher volume of ore milled. Production costs
per ounce increased when compared to the prior-year periods due to
the same factors that resulted in higher production costs per tonne
and lower gold grades
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs
per tonne increased when compared to the prior-year periods due to
the same reasons outlined above for the higher production costs per
tonne. Total cash costs per ounce increased when compared to the
prior-year periods due to the same reasons outlined above for the
higher production costs per ounce
Highlights
- Solid gold production during the quarter was driven by record
mill throughput since the re-start of Goldex operations in 2013,
including record throughput in May of approximately 289,000 tonnes
milled
- Development of the Deep 2 zone continued to advance as planned
during the quarter and began initial production in June 2024
- During the quarter, Goldex was recognized for its health and
safety performance and received the following awards:
- John T. Ryan National award from the Canadian Institute of
Mining, Metallurgy and Petroleum – awarded to a metal mine which
experienced the lowest reportable injury frequency in the previous
year
- F.J. O'Connell award for underground operations from the QMA –
recognizing the workplace health and safety performance of QMA
members
ABITIBI REGION, ONTARIO
Detour Lake – Mill Throughput Improved Quarter-over-Quarter;
Pathway to One Million Ounces Provided in June
Detour Lake –
Operating Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
6,792
|
|
6,800
|
|
13,294
|
|
13,197
|
Tonnes of ore milled
per day
|
|
74,637
|
|
74,725
|
|
73,044
|
|
72,912
|
Gold grade
(g/t)
|
|
0.86
|
|
0.85
|
|
0.84
|
|
0.85
|
Gold production
(ounces)
|
|
168,247
|
|
169,352
|
|
318,998
|
|
331,209
|
Production costs per
tonne (C$)
|
|
$
24
|
|
$
22
|
|
$
26
|
|
$
23
|
Minesite costs per
tonne (C$)
|
|
$
26
|
|
$
26
|
|
$
27
|
|
$
26
|
Production costs per
ounce
|
|
$
715
|
|
$
666
|
|
$
791
|
|
$
685
|
Total cash costs per
ounce
|
|
$
791
|
|
$
731
|
|
$
829
|
|
$
750
|
Gold Production
- Second Quarter of 2024 – Gold production decreased slightly
when compared to the prior-year period primarily due to lower
metallurgical recovery as a result of lower grinding efficiency
related to the change in grinding media during the quarter,
partially offset by higher gold grades
- First Six Months of 2024 – Gold production decreased when
compared to the prior-year period primarily due to lower
metallurgical recovery, mainly due to abnormal chipping of grinding
media affecting grinding efficiency and lower gold grades,
partially offset by higher throughput
Production Costs
- Second Quarter of 2024 – Production costs per tonne increased
when compared to the prior-year period primarily due to higher
milling costs as a result of the change in grinding media in the
SAG mill and higher mining costs, partially offset by stockpile
build-up in the current period. Production costs per ounce
increased when compared to the prior-year period due to the higher
production costs per tonne, partially offset by the higher gold
grades
- First Six Months of 2024 – Production costs per tonne increased
when compared to the prior-year period primarily due to higher
milling costs as a result of the change in grinding media in the
SAG mill and higher mining costs, partially offset by stockpile
build-up in the current period and by higher volume of ore milled
in the current period. Production costs per ounce increased when
compared to the prior-year period due to the same factors resulting
in higher production costs per tonne and lower gold grades
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne remained
unchanged when compared to the prior-year period. Total cash costs
per ounce increased when compared to the prior-year period due to
lower metallurgical recovery, partially offset by higher gold
grades
- First Six Months of 2024 – Minesite costs per tonne increased
when compared to the prior-year period due to the same reasons
outlined above that resulted in higher production costs per tonne.
Total cash costs per ounce increased when compared to the
prior-year period due to the same reasons outlined above that
resulted in higher production costs per ounce
Highlights
- The mill throughput rate of 74,637 tpd in the second quarter of
2024 increased when compared to the first quarter primarily due to
the replacement of the defective grinding media in the SAG mill and
record quarterly mill availability of 93.0%. The installation of
new instrumentation in the SAG mill to optimize the load balance
between the SAG mills and ball mills contributed to achieving
monthly throughput performance in June
2024 of 81,324 tpd. Other initiatives that are expected to
help reach the targeted rate of 76,700 tpd by the end of 2024
include the installation of a new ball mill discharge grizzly, a
SAG discharge box upgrade in one of the lines and installation of
variable speed drive to the secondary crushers
- Phase 2 of the open pit was completed in the second quarter of
2024. Assembly of the new Komatsu rope shovel was approximately 80%
complete as at June 30, 2024, with
commissioning expected in the third quarter of 2024. The new rope
shovel is expected to add increased capacity required per the life
of mine plan and will replace a diesel shovel of lower
capacity
- Metallurgical recovery remained below plan in the second
quarter of 2024 as a result of lower grinding efficiency related to
the change in grinding media. The Company continues to work with
its suppliers to optimize the grinding efficiency in the SAG mill
and has scheduled further tests of new grinding media in the third
quarter of 2024
- The expansion of the mine maintenance shop to support increased
mining rates and a larger production fleet is ongoing. The new
mining service facility is expected to be completed in 2025
- An upgrade of the 230kV main substation is planned to improve
the power quality at the mine and improve the site readiness for
potential projects such as the Detour Lake underground and mill
expansion. The engineering was completed and all long lead items
were ordered in the second quarter of 2024. The upgrades related to
power quality are expected to be completed in 2024 and those
related to improving site readiness for future projects are
expected in 2025
- An update on the underground project study and exploration
results is set out in the Update on Key Value Drivers and Pipeline
Projects section above
Macassa – Consecutive Quarters of Record Mill Throughput;
Continued Productivity Improvements from Workforce Ramp-Up and
Equipment Availability
Macassa – Operating
Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
152
|
|
112
|
|
286
|
|
199
|
Tonnes of ore milled
per day
|
|
1,670
|
|
1,231
|
|
1,571
|
|
1,099
|
Gold grade
(g/t)
|
|
13.44
|
|
16.16
|
|
14.77
|
|
19.29
|
Gold production
(ounces)
|
|
64,062
|
|
57,044
|
|
132,321
|
|
121,159
|
Production costs per
tonne (C$)
|
|
$
459
|
|
$
464
|
|
$
470
|
|
$
519
|
Minesite costs per
tonne (C$)
|
|
$
476
|
|
$
503
|
|
$
484
|
|
$
539
|
Production costs per
ounce
|
|
$
797
|
|
$
676
|
|
$
746
|
|
$
631
|
Total cash costs per
ounce
|
|
$
833
|
|
$
747
|
|
$
770
|
|
$
672
|
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production
increased when compared to the prior-year periods primarily due to
higher throughput as a result of productivity gains resulting from
new ventilation infrastructure, improved equipment availability and
the addition of ore sourced from the Near Surface deposit,
partially offset by lower gold grades related to the addition of
ore sourced from the Near Surface deposit
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs
per tonne decreased when compared to the prior-year periods due to
the higher volume of ore milled in the current periods, partially
offset by higher underground development and mining costs.
Production costs per ounce increased when compared to the
prior-year periods due to lower gold grades and higher underground
development and mining costs
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite
costs per tonne decreased when compared to the prior-year periods
due to the same reasons outlined above that resulted in lower
production costs per tonne. Total cash costs per ounce increased
when compared to the prior-year periods due to the same reasons
outlined above that resulted in the higher production costs per
ounce
Highlights
- Macassa recorded its best quarterly safety performance since
the merger between Agnico Eagle and Kirkland Lake Gold. The Macassa mine rescue team
won first place in the Kirkland Lake District Competition and in
the Ontario Provincial Mine Rescue Competition
- During the second quarter of 2024, Macassa continued to
demonstrate sustained productivity gains with record quarterly
volume skipped and record quarterly mill throughput. Gold grades
were lower than plan primarily due to processing more ore from the
lower grade Near Surface deposit
- At the Portal (ramp access to the Near Surface and AK
deposits), production from long hole stopes in the Near Surface
deposit continued in the second quarter of 2024, with volume of ore
mined and milled exceeding planned targets
- Construction of the new paste plant was 50% complete as at
June 30, 2024, and is on schedule for
commissioning in the first half of 2025
NUNAVUT
Meliadine – Solid Quarterly Performance Despite Earlier than
Planned Caribou Migration; Phase 2 Mill Expansion Complete
Meliadine –
Operating Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
421
|
|
461
|
|
917
|
|
937
|
Tonnes of ore milled
per day
|
|
4,626
|
|
5,066
|
|
5,038
|
|
5,177
|
Gold grade
(g/t)
|
|
6.79
|
|
6.14
|
|
6.49
|
|
6.13
|
Gold production
(ounces)
|
|
88,675
|
|
87,682
|
|
184,400
|
|
178,149
|
Production costs per
tonne (C$)
|
|
$
278
|
|
$
230
|
|
$
265
|
|
$
229
|
Minesite costs per
tonne (C$)
|
|
$
254
|
|
$
261
|
|
$
249
|
|
$
250
|
Production costs per
ounce
|
|
$
969
|
|
$
899
|
|
$
973
|
|
$
898
|
Total cash costs per
ounce
|
|
$
892
|
|
$
1,019
|
|
$
918
|
|
$
978
|
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production
increased when compared to the prior-year periods primarily due to
higher gold grades as expected under the planned the mining
sequence, partially offset by lower throughput
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs
per tonne increased when compared to the prior-year periods
primarily due to the timing of inventory sales, higher underground
services and royalty costs and a lower volume of ore milled in the
current periods, partially offset by the buildup of stockpiles.
Production costs per ounce increased when compared to the
prior-year periods due to the same reasons that resulted in
higher production costs per tonne, partially offset by higher gold
grades in the current periods
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs
per tonne decreased when compared to the prior-year period
primarily due to the buildup in stockpiles, partially offset by the
lower volume of ore milled. Total cash costs per ounce decreased
when compared to the prior-year period primarily due to higher gold
grades and the same reasons that resulted in lower minesite costs
per tonne
Highlights
- Gold production during the quarter was slightly affected by
lower throughput as a result of an earlier than anticipated caribou
migration period. Given the operational downtime due to the
migration, the Company took the opportunity to rehabilitate the
underground ramp during this period. The Company is adapting its
Caribou Readiness Plan, which includes earlier deployment of sea
can barriers, crushing of ore stockpiles, and stocking of surface
and underground materials, to further mitigate the impact of early
caribou migration in future years
- The mill expansion project was completed during the second
quarter and commissioning is expected in the third quarter of 2024.
Throughput at the mill is expected to ramp up to 6,000 tpd by
year-end 2024
- During the first quarter of 2024, the Company submitted a
proposal to the Nunavut Water Board to amend the current Type A
Water license to include tailings, water and waste management
infrastructure at the Pump, F-zone, Wesmeg and Discovery deposits.
A technical meeting with the Nunavut Water Board and meetings with
the community took place during the second quarter of 2024. Public
hearings are expected to take place in the third quarter of 2024.
The Company now expects permits to be received in the first quarter
of 2025
- During the quarter, Meliadine was recognized for its health and
safety performance and received the John T. Ryan Regional award
from the Canadian Institute of Mining, Metallurgy and Petroleum for
the second consecutive year – awarded to a metal mine for the
Prairie Provinces and Territories which experienced the lowest
reportable injury frequency in the previous year
Meadowbank – Higher Grades and Record Ore Hauling at the
Underground Operations Drive Production
Meadowbank Complex –
Operating Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
990
|
|
845
|
|
2,061
|
|
1,828
|
Tonnes of ore milled
per day
|
|
10,879
|
|
9,286
|
|
11,324
|
|
10,099
|
Gold grade
(g/t)
|
|
4.36
|
|
3.79
|
|
4.22
|
|
3.85
|
Gold production
(ounces)
|
|
126,419
|
|
94,775
|
|
254,193
|
|
205,885
|
Production costs per
tonne (C$)
|
|
$
169
|
|
$
186
|
|
$
156
|
|
$
181
|
Minesite costs per
tonne (C$)
|
|
$
160
|
|
$
178
|
|
$
155
|
|
$
176
|
Production costs per
ounce
|
|
$
973
|
|
$
1,240
|
|
$
933
|
|
$ 1,202
|
Total cash costs per
ounce
|
|
$
922
|
|
$
1,156
|
|
$
930
|
|
$ 1,144
|
Gold Production
- Second Quarter of 2024 – Gold production increased when
compared to the prior-year period primarily due to higher
throughput as operations in the prior period were affected by
unplanned mill shutdowns from the caribou migration, and higher
gold grades as expected under the mine plan
- First Six Months of 2024 – Gold production increased when
compared to the prior-year period primarily due to higher
throughput as the comparative period was affected by unplanned
downtime at the SAG mill and unplanned mill shutdowns from the
caribou migration, and higher gold grades as expected under the
mine plan
Production Costs
- Second Quarter and First Six Months of 2024 – Production costs
per tonne decreased when compared to the prior-year periods due to
a higher volume of ore milled. Production costs per ounce decreased
when compared to the prior-year periods primarily due to higher
gold grades and lower production costs per tonne
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs
per tonne decreased when compared to the prior-year periods due to
the same reasons outlined above that resulted in the lower
production costs per tonne. Total cash costs per ounce decreased
when compared to the prior-year periods due to the same reasons
outlined above that resulted in the lower production costs per
ounce
Highlights
- Gold production was higher than expected due to the operational
performance at both the open pit and underground operations
- Open pit operation continued to deliver strong haulage
performance during the second quarter of 2024, achieving a monthly
record in June 2024 benefiting from
both increased equipment availability and shorter cycle times
- The underground operation also had another strong quarter,
setting quarterly performance records for hauling, production
drilling and cemented rockfill in the second quarter of 2024. This
was accomplished through continued productivity gains that
demonstrated sustained improvement through the full mining cycle
and increased adherence and compliance to plan
AUSTRALIA
Fosterville – Record
Quarterly Ore Mined and Record Monthly Mill Throughput
Fosterville –
Operating Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
234
|
|
176
|
|
406
|
|
324
|
Tonnes of ore milled
per day
|
|
2,571
|
|
1,934
|
|
2,231
|
|
1,790
|
Gold grade
(g/t)
|
|
9.06
|
|
14.77
|
|
9.68
|
|
16.49
|
Gold production
(ounces)
|
|
65,963
|
|
81,813
|
|
122,532
|
|
168,371
|
Production costs per
tonne (A$)
|
|
$
237
|
|
$
308
|
|
$
264
|
|
$
335
|
Minesite costs per
tonne (A$)
|
|
$
259
|
|
$
304
|
|
$
265
|
|
$
321
|
Production costs per
ounce
|
|
$
558
|
|
$
438
|
|
$
575
|
|
$
430
|
Total cash costs per
ounce
|
|
$
608
|
|
$
436
|
|
$
575
|
|
$
416
|
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production
decreased when compared to the prior-year periods primarily due to
the lower gold grades from mine sequencing, partially offset by
higher throughput
Production Costs
- Second Quarter of 2024 – Production costs per tonne decreased
when compared to the prior-year period due to a higher volume of
ore mined and milled, partially offset by higher mining costs
associated with the extra volume, higher royalty costs and the
build-up of stockpiles. Production costs per ounce increased when
compared to the prior-year period due to lower gold production,
partially offset by lower production costs per tonne and the weaker
Australian dollar relative to the U.S. dollar
- First Six Months of 2024 – Production costs per tonne decreased
when compared to the prior-year period due to the higher volume of
ore mined and milled, partially offset by higher mining costs and
higher royalty costs. Production costs per ounce increased when
compared to the prior-year period due to lower gold production and
the timing of inventory sales, partially offset by lower production
costs per tonne and the weaker Australian dollar relative to the
U.S. dollar
Minesite and Total Cash Costs
- Second Quarter and First Six Months of 2024 – Minesite costs
per tonne decreased when compared to the prior-year periods due to
a higher volume of ore mined and milled, partially offset by higher
mining costs associated with the extra volume and higher royalty
costs. Total cash costs per ounce increased when compared to the
prior-year periods due to lower gold production, partially offset
by lower minesite costs per tonne and the weaker Australian dollar
relative to the U.S. dollar
Highlights
- The Company continues to focus on productivity gains and cost
control at the mine and the mill to maximize throughput and reduce
unit costs as gold grades continue to decline with the depletion of
the Swan zone. In the second quarter of 2024, Fosterville set a quarterly record in ore
mined at approximately 241,000 tonnes, driven by higher than
planned development in ore at Robbins Hill and Phoenix. The Company also set a monthly record
in mill throughput with approximately 101,000 tonnes processed in
June
- Fosterville initiated a
continuous improvement program leveraging work recently completed
at Meadowbank and Meliadine and is focusing on further productivity
gains at the mine and mill and on cost improvements. In the second
quarter a diagnostic assessment and benchmark was completed
highlighting stope cycle timing as an area of focus
- The Company is currently advancing an upgrade of the primary
ventilation system to sustain the mining rate in the Lower Phoenix
zones in future years. In the second quarter of 2024, the Company
continued the excavation of the ventilation raises and the project
is progressing as planned at approximately 63% completion. The
Company expects the project to be completed by early 2025
FINLAND
Kittila – Gold Production on Target Despite Challenges with
Mill Recovery; Continuous Improvement Program Initiated
Kittila – Operating
Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
524
|
|
417
|
|
1,006
|
|
913
|
Tonnes of ore milled
per day
|
|
5,758
|
|
4,582
|
|
5,527
|
|
5,044
|
Gold grade
(g/t)
|
|
4.07
|
|
4.42
|
|
4.19
|
|
4.59
|
Gold production
(ounces)
|
|
55,671
|
|
50,130
|
|
110,252
|
|
113,822
|
Production costs per
tonne (EUR)
|
|
€
102
|
|
€
101
|
|
€
107
|
|
€
100
|
Minesite costs per
tonne (EUR)
|
|
€
101
|
|
€
104
|
|
€
106
|
|
€
101
|
Production costs per
ounce
|
|
$
1,033
|
|
$
864
|
|
$ 1,057
|
|
$
849
|
Total cash costs per
ounce
|
|
$
1,020
|
|
$
899
|
|
$ 1,044
|
|
$
847
|
Gold Production
- Second Quarter of 2024 – Gold production increased when
compared to the prior-year period primarily due to higher
throughput as the mill operated through the current period compared
to a planned 10-day autoclave shutdown in the prior-year period,
partially offset by lower grades and recovery
- First Six Months of 2024 – Gold production decreased when
compared to the prior-year period primarily due to lower grades and
recovery, partially offset by higher throughput
Production Costs
- Second Quarter of 2024 – Production costs per tonne increased
slightly when compared to the prior-year period primarily due to
the consumption of stockpiles in the current period compared to a
build up of stockpiles in the prior-year period and higher
underground mining and royalty costs, partially offset by lower
mill maintenance costs in the current period. Production costs per
ounce increased when compared to the prior-year period due to lower
gold production and the same factors that resulted in higher
production costs per tonne
- First Six Months of 2024 – Production costs per tonne increased
when compared to the prior-year period primarily due to the milling
of stockpiles in the current period compared to a build up of
stockpiles in the prior-year period as well as higher underground
mining and royalty costs, partially offset by a higher volume of
ore milled in the current period. Production costs per ounce
increased when compared to the prior-year period due to lower gold
production and higher production costs per tonne
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne decreased
when compared to the prior-year period mainly due to the higher
volume of ore milled in the current period, partially offset by
higher underground mining and royalty costs. Total cash costs per
ounce increased when compared to the prior-year period due to the
lower gold production, partially offset by the same factors that
resulted in lower minesite costs per tonne
- First Six Months of 2024 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to higher
underground mining and royalty costs, partially offset by higher
volume of ore milled. Total cash costs per ounce increased when
compared to the prior-year period due to lower gold production and
the same factors that resulted in higher minesite costs per
tonne
Highlights
- Mill throughput remained on target in the second quarter of
2024, however, recovery continued to be lower than planned due to
high carbon and sulphur content in the ore which affected gold
production. Test trials with carbon depressant were conducted in
the quarter with inconsistent results. Mineralogical modelling is
ongoing and further tests will be conducted in the third quarter of
2024
- Kittila initiated a continuous improvement program leveraging
work recently completed at Meadowbank and Meliadine and is focusing
on mine productivity gains and cost improvements. In the second
quarter a diagnostic assessment and benchmark was completed
MEXICO
Pinos Altos – Gold
Production on Target, Supported by Solid Open Pit and Mill
Performance
Pinos Altos –
Operating Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
454
|
|
401
|
|
880
|
|
765
|
Tonnes of ore milled
per day
|
|
4,989
|
|
4,407
|
|
4,835
|
|
4,227
|
Gold grade
(g/t)
|
|
1.70
|
|
1.80
|
|
1.79
|
|
1.97
|
Gold production
(ounces)
|
|
23,754
|
|
22,159
|
|
48,479
|
|
46,293
|
Production costs per
tonne
|
|
$
95
|
|
$
87
|
|
$
87
|
|
$
88
|
Minesite costs per
tonne
|
|
$
93
|
|
$
90
|
|
$
94
|
|
$
91
|
Production costs per
ounce
|
|
$
1,815
|
|
$
1,566
|
|
$ 1,578
|
|
$ 1,461
|
Total cash costs per
ounce
|
|
$
1,414
|
|
$
1,282
|
|
$ 1,380
|
|
$ 1,196
|
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production
increased when compared to the prior-year periods primarily due to
higher throughput, partially offset by lower gold grades as
expected under the planned mining sequence
Production Costs
- Second Quarter of 2024 – Production costs per tonne increased
when compared to the prior-year period primarily due to a lower
deferred stripping adjustment, partially offset by a higher volume
of ore milled in the current period. Production costs per ounce
increased when compared to the prior-year period primarily due to
the same factors that resulted in higher production costs per tonne
and lower gold grades
- First Six Months of 2024 – Production costs per tonne decreased
when compared to the prior-year period primarily due to a higher
volume of ore milled, partially offset by a lower deferred
stripping adjustment in the current period. Production costs per
ounce increased when compared to the prior-year period primarily
due to lower gold grades, partially offset by the same factors that
resulted in lower production costs per tonne
Minesite and Total Cash Costs
- Second Quarter of 2024 – Minesite costs per tonne increased
when compared to the prior-year period due to the same reasons
outlined above for the higher production costs per tonne. Total
cash costs per ounce increased when compared to the prior-year
period due to the same reasons outlined above that resulted in
higher production costs per ounce
- First Six Months of 2024 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to higher
inventory adjustments in the period, partially offset by higher
volume of ore processed. Total cash costs per ounce increased when
compared to the prior-year period due to the same reasons outlined
above that resulted in higher production costs per ounce and the
stronger Mexican Peso relative to the U.S. dollar
La India – Residual Leaching
to Continue Through Year-End 2024
La India – Operating
Statistics
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands of tonnes)
|
|
—
|
|
880
|
|
—
|
|
1,540
|
Tonnes of ore milled
per day
|
|
—
|
|
9,670
|
|
—
|
|
8,508
|
Gold grade
(g/t)
|
|
—
|
|
0.74
|
|
—
|
|
0.72
|
Gold production
(ounces)
|
|
6,079
|
|
17,833
|
|
16,661
|
|
34,154
|
Production costs per
tonne
|
|
$
—
|
|
$
27
|
|
$
—
|
|
$
28
|
Minesite costs per
tonne
|
|
$
—
|
|
$
28
|
|
$
—
|
|
$
30
|
Production costs per
ounce
|
|
$
2,146
|
|
$
1,326
|
|
$ 1,742
|
|
$ 1,281
|
Total cash costs per
ounce
|
|
$
2,171
|
|
$
1,385
|
|
$ 1,715
|
|
$ 1,348
|
Gold Production
- Second Quarter and First Six Months of 2024 – Gold production
decreased when compared to the prior-year periods due to ceasing of
mining operations at La India in the fourth quarter of 2023. Gold
production in the current periods came only from residual
leaching
Costs
- Second Quarter and First Six Months of 2024 – Production costs
per ounce increased when compared to the prior-year periods driven
primarily by the cessation of mining activities, partially offset
by the strengthening of the Mexican Peso relative to the U.S.
dollar between periods
- Second Quarter and First Six Months of 2024 – Total cash costs
per ounce increased when compared to the prior-year periods
primarily due to fewer ounces of gold produced in the period
About Agnico Eagle
Agnico Eagle is a Canadian based and led senior gold mining
company and the third largest gold producer in the world, producing
precious metals from operations in 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.
About this News Release
Unless otherwise stated, references to "LaRonde", "Canadian
Malartic", "Meadowbank" and "Goldex" are to the Company's
operations at the LaRonde complex, the Canadian Malartic complex,
the Meadowbank complex and the Goldex complex, respectively. The
LaRonde complex consists of the mill and processing operations at
the LaRonde mine and the LaRonde zone 5 mine. The Canadian Malartic
complex consists of the mill and processing operations at the
Canadian Malartic mine and the Odyssey mine. The Meadowbank complex
consists of the mill and processing operations at the Meadowbank
mine and the Amaruq open pit and underground mines. The Goldex
complex consists of the mill and processing operations at the
Goldex mine and the Akasaba open pit mine. References to other
operations are to the relevant mines, projects or properties, as
applicable.
When used in this news release, the terms "including" and "such
as" mean including and such as, without limitation.
The information contained on any website linked to or referred
to herein (including the Company's website) is not part of this
news release.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance
measures and ratios, including "total cash costs per ounce",
"minesite costs per tonne", "all-in sustaining costs per ounce",
"adjusted net income", "adjusted net income per share", "cash
provided by operating activities before changes in non-cash working
capital balances", "cash provided by operating activities before
changes in non-cash working capital balances per share", "EBITDA"
which means earnings before interest, taxes, depreciation and
amortization, "adjusted EBITDA", "free cash flow", "free cash flow
before changes in non-cash working capital balances", "operating
margin", "sustaining capital expenditures", "development capital
expenditures" and "net debt", as well as, for certain of these
measures their related per share ratios that are not standardized
measures under IFRS. These measures may not be comparable to
similar measures reported by other gold producers and should be
considered together with other data prepared in accordance with
IFRS. See below for a reconciliation of these measures to the most
directly comparable financial information reported in the
consolidated financial statements prepared in accordance with
IFRS.
Total cash costs per ounce and minesite costs per
tonne
Total cash costs per ounce is calculated on a per ounce of gold
produced basis and is reported on both a by-product basis
(deducting by-product metal revenues from production costs) and
co-product basis (without deducting by-product metal revenues).
Total cash costs per ounce on a by-product basis is calculated by
adjusting production costs as recorded in the condensed interim
consolidated statements of income for by-product revenues,
inventory production costs, the impact of purchase price allocation
in connection with mergers and acquisitions on inventory
accounting, realized gains and losses on hedges of production
costs, operational care and maintenance costs due to COVID-19 and
other adjustments, which include the costs associated with a 5%
in-kind royalty paid in respect of certain portions of Canadian
Malartic, a 2% in-kind royalty paid in respect of Detour Lake, a
1.5% in-kind royalty paid in respect of Macassa, as well as
smelting, refining and marketing charges and then dividing by the
number of ounces of gold produced. Given the nature of the fair
value adjustment on inventory related to mergers and acquisitions
and the use of the total cash costs per ounce measures to reflect
the cash generating capabilities of the Company's operations, the
calculations of total cash costs per ounce for Canadian Malartic
has been adjusted for the purchase price allocation in the
comparative period data. Investors should note that total cash
costs per ounce are not reflective of all cash expenditures, as
they do not include income tax payments, interest costs or dividend
payments. Total cash costs per ounce on a co-product basis is
calculated in the same manner as the total cash costs per ounce 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 on a co-product basis does not reflect a
reduction in production costs or smelting, refining and marketing
charges associated with the production and sale of by-product
metals.
Total cash costs per ounce is intended to provide investors
information about the cash-generating capabilities of the Company's
mining operations. Management also uses these measures to, and
believes they are useful to investors so investors can, understand
and monitor the performance of the Company's mining operations. The
Company believes that total cash costs per ounce is useful to help
investors understand the costs associated with producing gold and
the economics of gold mining. As market prices for gold are quoted
on a per ounce basis, using the total cash costs per ounce on a
by-product basis measure allows management and investors to assess
a mine's cash-generating capabilities at various gold prices.
Management is aware, and investors should note, that these per
ounce measures of performance can be affected by fluctuations in
exchange rates and, in the case of total cash costs per ounce on a
by-product basis, by-product metal prices. Management compensates
for these inherent limitations by using, and investors should also
consider using, these measures in conjunction with data prepared in
accordance with IFRS and minesite costs per tonne as these measures
are not necessarily indicative of operating costs or cash flow
measures prepared in accordance with IFRS. Management also performs
sensitivity analyses in order to quantify the effects of
fluctuating metal prices and exchange rates.
Agnico Eagle's primary business is gold production and the focus
of its current operations and future development is on maximizing
returns from gold production, with other metal production being
incidental to the gold production process. Accordingly, all metals
other than gold are considered by-products.
Unless otherwise indicated, total cash costs per ounce is
reported on a by-product basis. Total cash costs per ounce is
reported on a by-product basis because (i) the majority of the
Company's revenues are from gold, (ii) the Company mines ore, which
contains gold, silver, zinc, copper and other metals, (iii) it is
not possible to specifically assign all costs to revenues from the
gold, silver, zinc, copper and other metals the Company produces,
(iv) it is a method used by management and the Board of Directors
to monitor operations, and (v) many other gold producers disclose
similar measures on a by-product rather than a co-product
basis.
Minesite costs per tonne are calculated by adjusting production
costs as recorded in the condensed interim consolidated statements
of income for inventory production costs, operational care
and maintenance costs due to COVID-19 and other adjustments, and
then dividing by tonnage of ore processed. As the total cash costs
per ounce can be affected by fluctuations in by–product metal
prices and foreign exchange rates, management believes that
minesite costs per tonne is useful to investors in providing
additional information regarding the performance of mining
operations, eliminating the impact of varying production levels.
Management also uses this measure to determine the economic
viability of mining blocks. As each mining block is evaluated based
on the net realizable value of each tonne mined, in order to be
economically viable the estimated revenue on a per tonne basis must
be in excess of the minesite costs per tonne. Management is aware,
and investors should note, that this per tonne measure of
performance can be affected by fluctuations in processing levels.
This inherent limitation may be partially mitigated by using this
measure in conjunction with production costs and other data
prepared in accordance with IFRS.
The following tables set out a reconciliation of total cash
costs per ounce and minesite costs per tonne to production costs,
exclusive of amortization, for the three and six months ended
June 30, 2024 and June 30, 2023, as presented in the condensed
interim consolidated statements of income in accordance with
IFRS.
Total Production
Costs by Mine
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months Ended
June 30,
|
(thousands of
United States dollars)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Quebec
|
|
|
|
|
|
|
|
LaRonde mine
|
$
43,682
|
|
$
63,969
|
|
$
119,238
|
|
$
103,676
|
LaRonde zone 5
mine
|
20,121
|
|
21,763
|
|
39,143
|
|
43,987
|
LaRonde
complex
|
63,803
|
|
85,732
|
|
158,381
|
|
147,663
|
Canadian
Malartic(i)
|
144,333
|
|
144,190
|
|
270,909
|
|
201,481
|
Goldex
|
33,084
|
|
28,160
|
|
66,266
|
|
55,995
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
|
120,302
|
|
112,796
|
|
252,207
|
|
226,818
|
Macassa
|
51,029
|
|
38,545
|
|
98,677
|
|
76,504
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
|
85,913
|
|
78,817
|
|
179,364
|
|
160,011
|
Meadowbank
|
123,014
|
|
117,488
|
|
237,176
|
|
247,492
|
Australia
|
|
|
|
|
|
|
|
Fosterville
|
36,824
|
|
35,831
|
|
70,478
|
|
72,430
|
Europe
|
|
|
|
|
|
|
|
Kittila
|
57,529
|
|
43,336
|
|
116,567
|
|
96,631
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
|
43,109
|
|
34,709
|
|
76,516
|
|
67,631
|
La India
|
13,044
|
|
23,649
|
|
29,028
|
|
43,741
|
Production costs per
the condensed interim consolidated
statements of income
|
$ 771,984
|
|
$ 743,253
|
|
$
1,555,569
|
|
$
1,396,397
|
Reconciliation of
Production Costs to Total Cash Costs per Ounce by Mine and
Reconciliation of Production Costs to Minesite Costs per Tonne by
Mine
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands of
United States dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
62,260
|
|
|
58,635
|
|
|
114,075
|
|
|
118,168
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
43,682
|
$
702
|
|
$
63,969
|
$ 1,091
|
|
$
119,238
|
$ 1,045
|
|
$
103,676
|
$
877
|
Inventory
adjustments(ii)
|
16,244
|
261
|
|
(8,971)
|
(153)
|
|
1,533
|
14
|
|
13,534
|
115
|
Realized gains and
losses on
hedges of production costs
|
351
|
5
|
|
770
|
13
|
|
370
|
3
|
|
1,848
|
16
|
Other
adjustments(v)
|
3,227
|
52
|
|
5,555
|
95
|
|
8,220
|
72
|
|
9,903
|
83
|
Total cash
costs
(co-product
basis)
|
$
63,504
|
$ 1,020
|
|
$
61,323
|
$ 1,046
|
|
$
129,361
|
$ 1,134
|
|
$
128,961
|
$ 1,091
|
By-product metal
revenues
|
(17,016)
|
(273)
|
|
(15,157)
|
(259)
|
|
(29,606)
|
(260)
|
|
(29,689)
|
(251)
|
Total cash
costs
(by-product
basis)
|
$
46,488
|
$
747
|
|
$
46,166
|
$
787
|
|
$
99,755
|
$
874
|
|
$
99,272
|
$
840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
mine
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
381
|
|
|
347
|
|
|
794
|
|
|
736
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$ 43,682
|
$
115
|
|
$
63,969
|
$
185
|
|
$
119,238
|
$
150
|
|
$
103,676
|
$
141
|
Production costs
(C$)
|
C$ 59,392
|
C$ 156
|
|
C$ 85,861
|
C$ 247
|
|
C$
161,417
|
C$
203
|
|
C$ 139,434
|
C$
189
|
Inventory adjustments
(C$)(iii)
|
23,045
|
60
|
|
(11,297)
|
(33)
|
|
2,731
|
3
|
|
18,426
|
25
|
Other adjustments
(C$)(v)
|
(3,264)
|
(8)
|
|
(3,302)
|
(8)
|
|
(3,600)
|
(4)
|
|
(6,443)
|
(8)
|
Minesite costs
(C$)
|
C$ 79,173
|
C$ 208
|
|
C$ 71,262
|
C$ 206
|
|
C$ 160,548
|
C$
202
|
|
C$ 151,417
|
C$
206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde zone 5
mine
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
20,074
|
|
|
18,145
|
|
|
36,623
|
|
|
38,219
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
20,121
|
$ 1,002
|
|
$
21,763
|
$ 1,199
|
|
$
39,143
|
$ 1,069
|
|
$
43,987
|
$ 1,151
|
Inventory
adjustments(ii)
|
(252)
|
(12)
|
|
(784)
|
(43)
|
|
68
|
2
|
|
(261)
|
(7)
|
Realized gains and
losses on
hedges of production costs
|
123
|
6
|
|
257
|
14
|
|
129
|
3
|
|
616
|
16
|
Other
adjustments(v)
|
996
|
50
|
|
775
|
43
|
|
1,366
|
37
|
|
1,111
|
29
|
Total cash
costs
(co-product
basis)
|
$
20,988
|
$ 1,046
|
|
$
22,011
|
$ 1,213
|
|
$
40,706
|
$ 1,111
|
|
$
45,453
|
$ 1,189
|
By-product metal
revenues
|
(311)
|
(16)
|
|
(271)
|
(15)
|
|
(498)
|
(13)
|
|
(546)
|
(14)
|
Total cash
costs
(by-product
basis)
|
$
20,677
|
$ 1,030
|
|
$
21,740
|
$ 1,198
|
|
$
40,208
|
$ 1,098
|
|
$
44,907
|
$ 1,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde zone 5
mine
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
299
|
|
|
313
|
|
|
566
|
|
|
632
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
20,121
|
$
67
|
|
$
21,763
|
$
70
|
|
$
39,143
|
$
69
|
|
$
43,987
|
$
70
|
Production costs
(C$)
|
C$ 27,730
|
C$
93
|
|
C$ 29,277
|
C$
94
|
|
C$ 53,244
|
C$
94
|
|
C$ 59,265
|
C$
94
|
Inventory adjustments
(C$)(iii)
|
(312)
|
(1)
|
|
(1,147)
|
(4)
|
|
120
|
—
|
|
(409)
|
(1)
|
Minesite costs
(C$)
|
C$ 27,418
|
C$
92
|
|
C$ 28,130
|
C$
90
|
|
C$ 53,364
|
C$
94
|
|
C$ 58,856
|
C$
93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
complex
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
82,334
|
|
|
76,780
|
|
|
150,698
|
|
|
156,387
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
63,803
|
$
775
|
|
$
85,732
|
$ 1,117
|
|
$
158,381
|
$ 1,051
|
|
$
147,663
|
$
944
|
Inventory
adjustments(ii)
|
15,992
|
194
|
|
(9,755)
|
(127)
|
|
1,601
|
11
|
|
13,273
|
85
|
Realized gains and
losses on
hedges of production costs
|
474
|
6
|
|
1,027
|
13
|
|
499
|
3
|
|
2,464
|
16
|
Other
adjustments(v)
|
4,223
|
51
|
|
6,330
|
82
|
|
9,586
|
64
|
|
11,014
|
70
|
Total cash
costs
(co-product
basis)
|
$
84,492
|
$ 1,026
|
|
$
83,334
|
$ 1,085
|
|
$
170,067
|
$ 1,129
|
|
$
174,414
|
$ 1,115
|
By-product metal
revenues
|
(17,327)
|
(210)
|
|
(15,428)
|
(201)
|
|
(30,104)
|
(200)
|
|
(30,235)
|
(193)
|
Total cash
costs
(by-product
basis)
|
$
67,165
|
$
816
|
|
$
67,906
|
$
884
|
|
$
139,963
|
$
929
|
|
$
144,179
|
$
922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LaRonde
complex
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
|
|
|
|
|
Tonnes of ore milled
(thousands)
|
|
680
|
|
|
660
|
|
|
1,360
|
|
|
1,368
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
63,803
|
$
94
|
|
$
85,732
|
$
130
|
|
$
158,381
|
$
116
|
|
$
147,663
|
$
108
|
Production costs
(C$)
|
C$ 87,122
|
C$ 128
|
|
C$ 115,138
|
C$ 174
|
|
C$ 214,661
|
C$ 158
|
|
C$ 198,699
|
C$ 145
|
Inventory adjustments
(C$)(iii)
|
22,733
|
34
|
|
(12,444)
|
(19)
|
|
2,851
|
2
|
|
18,017
|
13
|
Other adjustments
(C$)(v)
|
(3,264)
|
(5)
|
|
(3,302)
|
(4)
|
|
(3,600)
|
(3)
|
|
(6,443)
|
(4)
|
Minesite costs
(C$)
|
C$ 106,591
|
C$ 157
|
|
C$ 99,392
|
C$ 151
|
|
C$ 213,912
|
C$ 157
|
|
C$ 210,273
|
C$ 154
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
Malartic
(per
ounce)(i)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
180,871
|
|
|
177,755
|
|
|
367,777
|
|
|
258,440
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
144,333
|
$
798
|
|
$
144,190
|
$
811
|
|
$
270,909
|
$
737
|
|
$
201,481
|
$
780
|
Inventory
adjustments(ii)
|
(5,041)
|
(28)
|
|
43
|
—
|
|
9,666
|
26
|
|
538
|
2
|
Realized gains and
losses on
hedges of production costs
|
988
|
6
|
|
—
|
—
|
|
1,040
|
3
|
|
—
|
—
|
Purchase price
allocation to inventory(iv)
|
—
|
—
|
|
(22,821)
|
(128)
|
|
—
|
—
|
|
(22,821)
|
(88)
|
In-kind royalties and
other adjustments(v)
|
19,533
|
108
|
|
17,835
|
100
|
|
39,023
|
106
|
|
25,217
|
97
|
Total cash
costs
(co-product
basis)
|
$
159,813
|
$
884
|
|
$
139,247
|
$
783
|
|
$
320,638
|
$
872
|
|
$
204,415
|
$
791
|
By-product metal
revenues
|
(2,216)
|
(13)
|
|
(2,069)
|
(11)
|
|
(4,168)
|
(12)
|
|
(3,207)
|
(12)
|
Total cash
costs
(by-product
basis)
|
$
157,597
|
$
871
|
|
$
137,178
|
$
772
|
|
$
316,470
|
$
860
|
|
$
201,208
|
$
779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
Malartic
(per
tonne)(i)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
5,182
|
|
|
4,882
|
|
|
10,355
|
|
|
7,144
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
144,333
|
$
28
|
|
$
144,190
|
$
30
|
|
$
270,909
|
$
26
|
|
$
201,481
|
$
28
|
Production costs
(C$)
|
C$ 196,695
|
C$
38
|
|
C$ 194,997
|
C$
40
|
|
C$ 367,548
|
C$
35
|
|
C$ 271,662
|
C$
38
|
Inventory adjustments
(C$)(iii)
|
(6,517)
|
(1)
|
|
511
|
—
|
|
13,485
|
2
|
|
1,251
|
—
|
Purchase price
allocation to
inventory
(C$)(iv)
|
—
|
—
|
|
(30,651)
|
(6)
|
|
—
|
—
|
|
(30,651)
|
(4)
|
In-kind royalties and
other
adjustments (C$)(v)
|
26,930
|
5
|
|
23,599
|
5
|
|
52,567
|
5
|
|
33,424
|
5
|
Minesite costs
(C$)
|
C$ 217,108
|
C$
42
|
|
C$ 188,456
|
C$
39
|
|
C$ 433,600
|
C$
42
|
|
C$ 275,686
|
C$
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
33,750
|
|
|
37,716
|
|
|
68,138
|
|
|
71,739
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
33,084
|
$
980
|
|
$
28,160
|
$
747
|
|
$
66,266
|
$
973
|
|
$
55,995
|
$
781
|
Inventory
adjustments(ii)
|
222
|
7
|
|
582
|
16
|
|
679
|
10
|
|
(455)
|
(6)
|
Realized gains and
losses on
hedges of production costs
|
210
|
6
|
|
505
|
13
|
|
221
|
3
|
|
1,212
|
17
|
Other
adjustments(v)
|
827
|
25
|
|
40
|
1
|
|
1,197
|
17
|
|
102
|
1
|
Total cash
costs
(co-product
basis)
|
$
34,343
|
$ 1,018
|
|
$
29,287
|
$
777
|
|
$
68,363
|
$ 1,003
|
|
$
56,854
|
$
793
|
By-product metal
revenues
|
(5,199)
|
(154)
|
|
(11)
|
(1)
|
|
(6,616)
|
(97)
|
|
(25)
|
(1)
|
Total cash
costs
(by-product
basis)
|
$
29,144
|
$
864
|
|
$
29,276
|
$
776
|
|
$
61,747
|
$
906
|
|
$
56,829
|
$
792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goldex
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
765
|
|
|
761
|
|
|
1,525
|
|
|
1,459
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
33,084
|
$
43
|
|
$
28,160
|
$
37
|
|
$
66,266
|
$
43
|
|
$
55,995
|
$
38
|
Production costs
(C$)
|
C$ 45,174
|
C$
59
|
|
C$ 37,859
|
C$
50
|
|
C$ 89,919
|
C$
59
|
|
C$ 75,486
|
C$
52
|
Inventory adjustments
(C$)(iii)
|
390
|
1
|
|
730
|
1
|
|
1,039
|
1
|
|
(660)
|
(1)
|
Minesite costs
(C$)
|
C$ 45,564
|
C$
60
|
|
C$ 38,589
|
C$
51
|
|
C$ 90,958
|
C$
60
|
|
C$ 74,826
|
C$
51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour
Lake
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
168,247
|
|
|
169,352
|
|
|
318,998
|
|
|
331,209
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
120,302
|
$
715
|
|
$
112,796
|
$
666
|
|
$
252,207
|
$
791
|
|
$
226,818
|
$
685
|
Inventory
adjustments(ii)
|
3,617
|
21
|
|
(474)
|
(3)
|
|
(4,569)
|
(14)
|
|
(168)
|
—
|
Realized gains and
losses on
hedges of production costs
|
1,089
|
7
|
|
2,541
|
15
|
|
1,147
|
3
|
|
6,095
|
18
|
In-kind royalties and
other adjustments(v)
|
8,723
|
52
|
|
9,410
|
56
|
|
16,867
|
53
|
|
16,985
|
51
|
Total cash
costs
(co-product
basis)
|
$
133,731
|
$
795
|
|
$
124,273
|
$
734
|
|
$
265,652
|
$
833
|
|
$
249,730
|
$
754
|
By-product metal
revenues
|
(666)
|
(4)
|
|
(505)
|
(3)
|
|
(1,246)
|
(4)
|
|
(1,187)
|
(4)
|
Total cash
costs
(by-product
basis)
|
$
133,065
|
$
791
|
|
$
123,768
|
$
731
|
|
$
264,406
|
$
829
|
|
$
248,543
|
$
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detour
Lake
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
6,792
|
|
|
6,800
|
|
|
13,294
|
|
|
13,197
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
120,302
|
$
18
|
|
$
112,796
|
$
17
|
|
$
252,207
|
$
19
|
|
$
226,818
|
$
17
|
Production costs
(C$)
|
C$ 164,189
|
C$
24
|
|
C$ 151,645
|
C$
22
|
|
C$ 342,398
|
C$
26
|
|
C$ 305,553
|
C$
23
|
Inventory adjustments
(C$)(iii)
|
5,253
|
1
|
|
12,357
|
2
|
|
(5,687)
|
—
|
|
12,872
|
1
|
In-kind royalties and
other adjustments (C$)(v)
|
9,748
|
1
|
|
11,381
|
2
|
|
18,624
|
1
|
|
20,146
|
2
|
Minesite costs
(C$)
|
C$ 179,190
|
C$
26
|
|
C$ 175,383
|
C$
26
|
|
C$ 355,335
|
C$
27
|
|
C$ 338,571
|
C$
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
64,062
|
|
|
57,044
|
|
|
132,321
|
|
|
121,159
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
51,029
|
$
797
|
|
$
38,545
|
$
676
|
|
$
98,677
|
$
746
|
|
$
76,504
|
$
631
|
Inventory
adjustments(ii)
|
(441)
|
(7)
|
|
(178)
|
(3)
|
|
(1,530)
|
(12)
|
|
(1,473)
|
(11)
|
Realized gains and
losses on
hedges of production costs
|
432
|
7
|
|
812
|
14
|
|
455
|
4
|
|
1,949
|
16
|
In-kind royalties and
other adjustments(v)
|
2,356
|
36
|
|
3,613
|
63
|
|
4,513
|
34
|
|
4,757
|
39
|
Total cash
costs
(co-product
basis)
|
$
53,376
|
$
833
|
|
$
42,792
|
$
750
|
|
$
102,115
|
$
772
|
|
$
81,737
|
$
675
|
By-product metal
revenues
|
—
|
—
|
|
(168)
|
(3)
|
|
(220)
|
(2)
|
|
(376)
|
(3)
|
Total cash
costs
(by-product
basis)
|
$
53,376
|
$
833
|
|
$
42,624
|
$
747
|
|
$
101,895
|
$
770
|
|
$
81,361
|
$
672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macassa
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
152
|
|
|
112
|
|
|
286
|
|
|
199
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
51,029
|
$
336
|
|
$
38,545
|
$
344
|
|
$
98,677
|
$
345
|
|
$
76,504
|
$
384
|
Production costs
(C$)
|
C$ 69,756
|
C$ 459
|
|
C$ 51,994
|
C$ 464
|
|
C$ 134,428
|
C$ 470
|
|
C$ 103,236
|
C$ 519
|
Inventory adjustments
(C$)(iii)
|
(524)
|
(3)
|
|
(359)
|
(3)
|
|
(1,940)
|
(7)
|
|
(2,076)
|
(10)
|
In-kind royalties and
other adjustments (C$)(v)
|
3,138
|
20
|
|
4,775
|
42
|
|
5,953
|
21
|
|
6,291
|
30
|
Minesite costs
(C$)
|
C$ 72,370
|
C$ 476
|
|
C$ 56,410
|
C$ 503
|
|
C$ 138,441
|
C$ 484
|
|
C$ 107,451
|
C$ 539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
88,675
|
|
|
87,682
|
|
|
184,400
|
|
|
178,149
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
85,913
|
$
969
|
|
$
78,817
|
$
899
|
|
$
179,364
|
$
973
|
|
$
160,011
|
$
898
|
Inventory
adjustments(ii)
|
(7,455)
|
(84)
|
|
11,228
|
128
|
|
(10,755)
|
(58)
|
|
14,852
|
83
|
Realized gains and
losses on
hedges of production costs
|
827
|
9
|
|
(451)
|
(5)
|
|
1,107
|
6
|
|
(363)
|
(2)
|
Other
adjustments(v)
|
93
|
1
|
|
(118)
|
(2)
|
|
35
|
—
|
|
(13)
|
—
|
Total cash
costs
(co-product
basis)
|
$
79,378
|
$
895
|
|
$
89,476
|
$ 1,020
|
|
$
169,751
|
$
921
|
|
$
174,487
|
$
979
|
By-product metal
revenues
|
(280)
|
(3)
|
|
(139)
|
(1)
|
|
(515)
|
(3)
|
|
(339)
|
(1)
|
Total cash
costs
(by-product
basis)
|
$
79,098
|
$
892
|
|
$
89,337
|
$ 1,019
|
|
$
169,236
|
$
918
|
|
$
174,148
|
$
978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meliadine
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
421
|
|
|
461
|
|
|
917
|
|
|
937
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
85,913
|
$
204
|
|
$
78,817
|
$
171
|
|
$
179,364
|
$
196
|
|
$
160,011
|
$
171
|
Production costs
(C$)
|
C$ 116,869
|
C$ 278
|
|
C$ 105,834
|
C$ 230
|
|
C$ 242,795
|
C$ 265
|
|
C$ 214,715
|
C$ 229
|
Inventory adjustments
(C$)(iii)
|
(9,818)
|
(24)
|
|
14,556
|
31
|
|
(14,213)
|
(16)
|
|
19,606
|
21
|
Minesite costs
(C$)
|
C$ 107,051
|
C$ 254
|
|
C$ 120,390
|
C$ 261
|
|
C$ 228,582
|
C$ 249
|
|
C$ 234,321
|
C$ 250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
126,419
|
|
|
94,775
|
|
|
254,193
|
|
|
205,885
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
123,014
|
$
973
|
|
$
117,488
|
$ 1,240
|
|
$
237,176
|
$
933
|
|
$
247,492
|
$ 1,202
|
Inventory
adjustments(ii)
|
(6,610)
|
(52)
|
|
(5,048)
|
(54)
|
|
(705)
|
(3)
|
|
(6,702)
|
(32)
|
Realized gains and
losses on
hedges of production costs
|
1,275
|
10
|
|
(2,118)
|
(22)
|
|
1,821
|
7
|
|
(3,617)
|
(18)
|
Other
adjustments(v)
|
14
|
—
|
|
4
|
—
|
|
(45)
|
—
|
|
(51)
|
—
|
Total cash
costs
(co-product
basis)
|
$
117,693
|
$
931
|
|
$
110,326
|
$ 1,164
|
|
$
238,247
|
$
937
|
|
$
237,122
|
$ 1,152
|
By-product metal
revenues
|
(1,108)
|
(9)
|
|
(723)
|
(8)
|
|
(1,974)
|
(7)
|
|
(1,548)
|
(8)
|
Total cash
costs
(by-product
basis)
|
$
116,585
|
$
922
|
|
$
109,603
|
$ 1,156
|
|
$
236,273
|
$
930
|
|
$
235,574
|
$ 1,144
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Meadowbank
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
990
|
|
|
845
|
|
|
2,061
|
|
|
1,828
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
123,014
|
$
124
|
|
$
117,488
|
$
139
|
|
$
237,176
|
$
115
|
|
$
247,492
|
$
135
|
Production costs
(C$)
|
C$ 167,525
|
C$ 169
|
|
C$ 157,407
|
C$ 186
|
|
C$ 321,119
|
C$ 156
|
|
C$ 330,385
|
C$ 181
|
Inventory adjustments
(C$)(iii)
|
(8,768)
|
(9)
|
|
(6,632)
|
(8)
|
|
(766)
|
(1)
|
|
(8,858)
|
(5)
|
Minesite costs
(C$)
|
C$ 158,757
|
C$ 160
|
|
C$ 150,775
|
C$ 178
|
|
C$ 320,353
|
C$ 155
|
|
C$ 321,527
|
C$ 176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
65,963
|
|
|
81,813
|
|
|
122,532
|
|
|
168,371
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
36,824
|
$
558
|
|
$
35,831
|
$
438
|
|
$
70,478
|
$
575
|
|
$
72,430
|
$
430
|
Inventory
adjustments(ii)
|
3,382
|
52
|
|
(522)
|
(6)
|
|
246
|
2
|
|
(2,885)
|
(17)
|
Realized gains and
losses on
hedges of production costs
|
68
|
1
|
|
489
|
6
|
|
86
|
1
|
|
677
|
4
|
Other
adjustments(v)
|
12
|
—
|
|
(7)
|
(1)
|
|
29
|
—
|
|
39
|
—
|
Total cash
costs
(co-product
basis)
|
$
40,286
|
$
611
|
|
$
35,791
|
$
437
|
|
$
70,839
|
$
578
|
|
$
70,261
|
$
417
|
By-product metal
revenues
|
(167)
|
(3)
|
|
(121)
|
(1)
|
|
(327)
|
(3)
|
|
(278)
|
(1)
|
Total cash
costs
(by-product
basis)
|
$
40,119
|
$
608
|
|
$
35,670
|
$
436
|
|
$
70,512
|
$
575
|
|
$
69,983
|
$
416
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fosterville
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
234
|
|
|
176
|
|
|
406
|
|
|
324
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
36,824
|
$
157
|
|
$
35,831
|
$
204
|
|
$
70,478
|
$
174
|
|
$
72,430
|
$
224
|
Production costs
(A$)
|
A$ 55,526
|
A$ 237
|
|
A$ 54,280
|
A$ 308
|
|
A$
107,375
|
A$ 264
|
|
A$
108,462
|
A$ 335
|
Inventory adjustments
(A$)(ii)
|
4,995
|
22
|
|
(756)
|
(4)
|
|
365
|
1
|
|
(4,357)
|
(14)
|
Minesite costs
(A$)
|
A$ 60,521
|
A$ 259
|
|
A$ 53,524
|
A$ 304
|
|
A$
107,740
|
A$ 265
|
|
A$
104,105
|
A$ 321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
55,671
|
|
|
50,130
|
|
|
110,252
|
|
|
113,822
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
57,529
|
$ 1,033
|
|
$
43,336
|
$
864
|
|
$
116,567
|
$ 1,057
|
|
$
96,631
|
$
849
|
Inventory
adjustments(ii)
|
(649)
|
(12)
|
|
2,784
|
56
|
|
(1,144)
|
(10)
|
|
2,744
|
24
|
Realized gains and
losses on
hedges of production costs
|
30
|
1
|
|
(925)
|
(18)
|
|
19
|
—
|
|
(1,558)
|
(14)
|
Other
adjustments(v)
|
(52)
|
(1)
|
|
(50)
|
(1)
|
|
(120)
|
(1)
|
|
(1,273)
|
(11)
|
Total cash
costs
(co-product
basis)
|
$
56,858
|
$ 1,021
|
|
$
45,145
|
$
901
|
|
$
115,322
|
$ 1,046
|
|
$
96,544
|
$
848
|
By-product metal
revenues
|
(98)
|
(1)
|
|
(93)
|
(2)
|
|
(187)
|
(2)
|
|
(162)
|
(1)
|
Total cash
costs
(by-product
basis)
|
$
56,760
|
$ 1,020
|
|
$
45,052
|
$
899
|
|
$
115,135
|
$ 1,044
|
|
$
96,382
|
$
847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kittila
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
524
|
|
|
417
|
|
|
1,006
|
|
|
913
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
57,529
|
$
110
|
|
$
43,336
|
$
104
|
|
$
116,567
|
$
116
|
|
$
96,631
|
$
106
|
Production costs
(€)
|
€
53,377
|
€
102
|
|
€
42,251
|
€
101
|
|
€
107,856
|
€
107
|
|
€
91,002
|
€
100
|
Inventory adjustments
(€)(iii)
|
(515)
|
(1)
|
|
946
|
3
|
|
(885)
|
(1)
|
|
832
|
1
|
Minesite costs
(€)
|
€
52,862
|
€
101
|
|
€
43,197
|
€
104
|
|
€
106,971
|
€
106
|
|
€
91,834
|
€
101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos
Altos
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
23,754
|
|
|
22,159
|
|
|
48,479
|
|
|
46,293
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
43,109
|
$ 1,815
|
|
$
34,709
|
$ 1,566
|
|
$
76,516
|
$ 1,578
|
|
$
67,631
|
$ 1,461
|
Inventory
adjustments(ii)
|
(872)
|
(37)
|
|
761
|
34
|
|
5,783
|
119
|
|
513
|
11
|
Realized gains and
losses on
hedges of production costs
|
—
|
—
|
|
(690)
|
(31)
|
|
—
|
—
|
|
(1,143)
|
(25)
|
Other
adjustments(v)
|
345
|
15
|
|
286
|
13
|
|
663
|
14
|
|
578
|
13
|
Total cash
costs
(co-product
basis)
|
$
42,582
|
$ 1,793
|
|
$
35,066
|
$ 1,582
|
|
$
82,962
|
$ 1,711
|
|
$
67,579
|
$ 1,460
|
By-product metal
revenues
|
(8,989)
|
(379)
|
|
(6,653)
|
(300)
|
|
(16,039)
|
(331)
|
|
(12,227)
|
(264)
|
Total cash
costs
(by-product
basis)
|
$
33,593
|
$ 1,414
|
|
$
28,413
|
$ 1,282
|
|
$
66,923
|
$ 1,380
|
|
$
55,352
|
$ 1,196
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pinos
Altos
(per
tonne)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
454
|
|
|
401
|
|
|
880
|
|
|
765
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
43,109
|
$
95
|
|
$
34,709
|
$
87
|
|
$
76,516
|
$
87
|
|
$
67,631
|
$
88
|
Inventory
adjustments(iii)
|
(872)
|
(2)
|
|
1,905
|
3
|
|
5,783
|
7
|
|
1,657
|
3
|
Minesite
costs
|
$
42,237
|
$
93
|
|
$
36,614
|
$
90
|
|
$
82,299
|
$
94
|
|
$
69,288
|
$
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La
India
(per
ounce)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Gold production
(ounces)
|
|
6,079
|
|
|
17,833
|
|
|
16,661
|
|
|
34,154
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
|
(thousands)
|
($ per
ounce)
|
Production
costs
|
$
13,044
|
$ 2,146
|
|
$
23,649
|
$ 1,326
|
|
$
29,028
|
$ 1,742
|
|
$
43,741
|
$ 1,281
|
Inventory
adjustments(ii)
|
381
|
63
|
|
1,318
|
74
|
|
147
|
9
|
|
2,766
|
80
|
Other
adjustments(v)
|
131
|
21
|
|
134
|
8
|
|
264
|
16
|
|
263
|
8
|
Total cash
costs
(co-product
basis)
|
$
13,556
|
$ 2,230
|
|
$
25,101
|
$ 1,408
|
|
$
29,439
|
$ 1,767
|
|
$
46,770
|
$ 1,369
|
By-product metal
revenues
|
(356)
|
(59)
|
|
(407)
|
(23)
|
|
(858)
|
(52)
|
|
(722)
|
(21)
|
Total cash
costs
(by-product
basis)
|
$
13,200
|
$ 2,171
|
|
$
24,694
|
$ 1,385
|
|
$
28,581
|
$ 1,715
|
|
$
46,048
|
$ 1,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
La
India
(per
tonne)(vi)
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Tonnes of ore milled
(thousands)
|
|
—
|
|
|
880
|
|
|
—
|
|
|
1,540
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
|
(thousands)
|
($ per
tonne)
|
Production
costs
|
$
13,044
|
$
—
|
|
$
23,649
|
$
27
|
|
$
29,028
|
$
—
|
|
$
43,741
|
$
28
|
Inventory
adjustments(iii)
|
(13,044)
|
—
|
|
1,318
|
1
|
|
(29,028)
|
—
|
|
2,766
|
2
|
Minesite
costs
|
$
—
|
$
—
|
|
$
24,967
|
$
28
|
|
$
—
|
$
—
|
|
$
46,507
|
$
30
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
(i) The information set
out in this table reflects the Company's 50% interest in Canadian
Malartic up to and including March 30, 2023 and 100% interest
thereafter, following the closing of the Yamana
Transaction.
|
(ii) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce are
calculated on a production basis, an inventory adjustment is made
to reflect the portion of production not yet recognized as
revenue.
|
(iii) This inventory
adjustment reflects production costs associated with the portion of
production still in inventory.
|
(iv) On March 31, 2023,
the Company closed the Yamana Transaction and this adjustment
reflects the fair value allocated to inventory on Canadian Malartic
as part of the purchase price allocation.
|
(v) Other adjustments
consists of costs associated with a 5% in-kind royalty paid in
respect of Canadian Malartic, a 2% in-kind royalty paid in respect
of Detour Lake, a 1.5% in-kind royalty paid in respect of Macassa
and smelting, refining, and marketing charges to production
costs.
|
(vi) La India's cost
calculations per tonne for the three and six months ended June 30,
2024 excludes approximately $13.0 and $29.0 million of production
costs incurred during the period, respectively, following the
cessation of mining activities at La India during the fourth
quarter of 2023.
|
All-in sustaining costs per ounce
All-in sustaining costs per ounce (also referred to as "AISC per
ounce") on a by-product basis is calculated as the aggregate
of total cash costs on a by-product basis, sustaining capital
expenditures (including capitalized exploration), general and
administrative expenses (including stock options), lease payments
related to sustaining assets and reclamation expenses, and then
dividing by the number of ounces of gold produced. These additional
costs reflect the additional expenditures that are required to be
made to maintain current production levels. The AISC per ounce on a
co-product basis is calculated in the same manner as the AISC per
ounce on a by-product basis, except that the total cash costs on a
co-product basis are used, meaning no adjustment is made for
by-product metal revenues. Investors should note that AISC per
ounce is not reflective of all cash expenditures as it does not
include income tax payments, interest costs or dividend payments,
nor does it include non-cash expenditures, such as depreciation and
amortization. Unless otherwise indicated, all-in sustaining costs
per ounce is reported on a by-product basis (see "Total cash costs
per ounce" for a discussion of regarding the Company's use of
by-product basis reporting).
Management believes that AISC per ounce is useful to investors
as it reflects total sustaining expenditures of producing and
selling an ounce of gold while maintaining current operations and,
as such, provides useful information about operating performance.
Management is aware, and investors should note, that these per
ounce measures of performance can be affected by fluctuations in
foreign exchange rates and, in the case of AISC per ounce on a
by-product basis, by-product metal prices. Management compensates
for these inherent limitations by using, and investors should also
consider using, these measures in conjunction with data prepared in
accordance with IFRS and minesite costs per tonne as this measure
is not necessarily indicative of operating costs or cash flow
measures prepared in accordance with IFRS.
The Company follows the guidance on calculation of AISC per
ounce released by the World Gold Council ("WGC") in 2018. The WGC
is a non-regulatory market development organization for the gold
industry that has worked closely with its member companies to
develop guidance in respect of relevant non-GAAP measures.
Notwithstanding the Company's adoption of the WGC's guidance, AISC
per ounce reported by the Company may not be comparable to data
reported by other gold mining companies.
The following tables set out a reconciliation of production
costs to all-in sustaining costs per ounce for the three and six
months ended June 30, 2024 and
June 30, 2023, on both a by-product
basis (deducting by-product metals revenue from production costs)
and co-product basis (without deducting by-product metal
revenues).
(United States dollars per ounce, except
where noted)
|
Three Months
Ended
June
30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Production costs per
the consolidated statements of income
(thousands of
United States dollars)
|
$
771,984
|
|
$
743,253
|
|
$
1,555,569
|
|
$
1,396,397
|
Gold production
(ounces)
|
895,838
|
|
873,204
|
|
1,774,490
|
|
1,686,017
|
Production costs per
ounce
|
$
862
|
|
$
851
|
|
$
877
|
|
$
828
|
Adjustments:
|
|
|
|
|
|
|
|
Inventory
adjustments(i)
|
3
|
|
1
|
|
—
|
|
14
|
Purchase price
allocation to inventory(ii)
|
—
|
|
(26)
|
|
—
|
|
(13)
|
Realized gains and
losses on hedges of production costs
|
6
|
|
1
|
|
4
|
|
3
|
Other(iii)
|
40
|
|
43
|
|
39
|
|
34
|
Total cash costs per
ounce (co-product basis)
|
$
911
|
|
$
870
|
|
$
920
|
|
$
866
|
By-product metal
revenues
|
(41)
|
|
(30)
|
|
(35)
|
|
(30)
|
Total cash costs per
ounce (by-product basis)
|
$
870
|
|
$
840
|
|
$
885
|
|
$
836
|
Adjustments:
|
|
|
|
|
|
|
|
Sustaining capital
expenditures (including capitalized exploration)
|
227
|
|
237
|
|
221
|
|
226
|
General and
administrative expenses (including stock option expense)
|
54
|
|
54
|
|
55
|
|
57
|
Non-cash reclamation
provision and sustaining leases(iv)
|
18
|
|
19
|
|
18
|
|
19
|
All-in sustaining costs
per ounce (by-product basis)
|
$
1,169
|
|
$
1,150
|
|
$
1,179
|
|
$
1,138
|
By-product metal
revenues
|
41
|
|
30
|
|
35
|
|
30
|
All-in sustaining costs
per ounce (co-product basis)
|
$
1,210
|
|
$
1,180
|
|
$
1,214
|
|
$
1,168
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Under the
Company's revenue recognition policy, revenue from contracts with
customers is recognized upon the transfer of control over metals
sold to the customer. As the total cash costs per ounce are
calculated on a production basis, an inventory adjustment is made
to reflect the portion of production not yet recognized as
revenue.
|
(ii) On March 31,
2023, the Company closed the Yamana Transaction and this adjustment
reflects the fair value allocated to inventory at Canadian Malartic
as part of the purchase price allocation.
|
(iii) Other
adjustments consist of in-kind royalties, smelting, refining and
marketing charges to production costs.
|
(iv) Sustaining
leases are lease payments related to sustaining assets.
|
Adjusted net income and adjusted net income per share
Adjusted net income and adjusted net income per share are
calculated by adjusting the net income as recorded in the condensed
interim consolidated statements of income for the effects of
certain items that the Company believes are not reflective of the
Company's underlying performance for the reporting period. Adjusted
net income is calculated by adjusting net income for items such as
foreign currency translation gains or losses, realized and
unrealized gains or losses on derivative financial instruments,
revaluation gains, impairment loss charges and reversals,
environmental remediation, severance and transaction costs related
to acquisitions, purchase price allocations to inventory, gains or
losses on the disposal of assets, retroactive payments and income
and mining taxes adjustments. Adjusted net income per share is
calculated by dividing adjusted net income by the weighted average
number of shares outstanding at the end of the period on a basic
and diluted basis.
The Company believes that these generally accepted industry
measures are useful to investors in that they allow for the
evaluation of the results of continuing operations and in making
comparisons between periods. Adjusted net income and adjusted net
income per share are intended to provide investors with information
about the Company's continuing income generating capabilities from
its core mining business, excluding the above adjustments, which
the Company believes are not reflective of operational performance.
Management uses this measure to, and believes it is useful to
investors so they can, understand and monitor for the operating
performance of the Company in conjunction with other data prepared
in accordance with IFRS.
The following tables set out a reconciliation of net income per
the condensed interim consolidated statements of income to adjusted
net income for the three and six months ended June 30, 2024, and June
30, 2023.
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
(thousands of
United States dollars)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Restated(i)
|
|
|
|
Restated(i)
|
Net income for the
period - basic
|
$
472,016
|
|
$
323,670
|
|
$
819,208
|
|
$
2,140,561
|
Dilutive impact of
cash settling LTIP
|
—
|
|
(1,140)
|
|
2,062
|
|
(2,916)
|
Net income for the
period - diluted
|
$
472,016
|
|
$
322,530
|
|
$
821,270
|
|
$
2,137,645
|
Foreign currency
translation loss (gain)
|
363
|
|
4,014
|
|
(4,184)
|
|
4,234
|
Realized and
unrealized loss (gain) on derivative financial
instruments
|
19,608
|
|
(26,433)
|
|
65,543
|
|
(32,972)
|
Transaction costs
related to acquisitions
|
—
|
|
1,674
|
|
—
|
|
16,912
|
Revaluation gain on
Yamana Transaction
|
—
|
|
—
|
|
—
|
|
(1,543,414)
|
Environmental
remediation
|
3,108
|
|
(1,420)
|
|
4,907
|
|
(1,977)
|
Net loss on disposal
of property, plant and equipment
|
16,819
|
|
1,058
|
|
20,366
|
|
3,601
|
Purchase price
allocation to inventory
|
—
|
|
22,821
|
|
—
|
|
22,821
|
Other(ii)
|
13,215
|
|
—
|
|
13,215
|
|
—
|
Income and mining
taxes adjustments(iii)
|
10,139
|
|
(6,121)
|
|
(6,316)
|
|
(19,223)
|
Adjusted net income
for the period - basic
|
$
535,268
|
|
$
319,263
|
|
$
912,739
|
|
$
590,543
|
Adjusted net income
for the period - diluted
|
$
535,268
|
|
$
318,123
|
|
$
914,801
|
|
$
587,627
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Yamana Transaction.
|
(ii) Other adjustments
relate to retroactive payments that management considers not
reflective of the Company's underlying performance in the current
period.
|
(iii) Income and mining
taxes adjustments reflect items such as foreign currency
translation recorded to the income and mining taxes expense, the
impact of income and mining taxes on adjusted items, recognition of
previously unrecognized capital losses, the result of income and
mining taxes audits, impact of tax law changes and adjustments to
prior period tax filings.
|
EBITDA and adjusted EBITDA
EBITDA is calculated by adjusting the net income as recorded in
the condensed interim consolidated statements of income for finance
costs, amortization of property, plant and mine development and
income and mining tax expense line items as reported in the
condensed interim consolidated statements of income.
Adjusted EBITDA removes the effects of certain items that the
Company believes are not reflective of the Company's underlying
performance for the reporting period. Adjusted EBITDA is calculated
by adjusting the EBITDA calculation for items such as foreign
currency translation gains or losses, realized and unrealized gains
or losses on derivative financial instruments, revaluation gains,
impairment loss charges and reversals, environmental remediation,
severance and transaction costs related to acquisitions, gains or
losses on the disposal of assets, retroactive payments and purchase
price allocations to inventory.
The Company believes that these generally accepted industry
measures are useful in that they allow for the evaluation of the
cash generating capability of the Company to fund its working
capital, capital expenditure and debt repayments. EBITDA and
Adjusted EBITDA are intended to provide investors with information
about the Company's continuing cash generating capability from its
core mining business, excluding the above adjustments, which
management believes are not reflective of operational performance.
Management uses these measures to, and believes it is useful to
investors so they can, understand and monitor the cash generating
capability of the Company in conjunction with other data prepared
in accordance with IFRS.
The following tables set out a reconciliation of net income per
the condensed interim consolidated statements of income to EBITDA
and adjusted EBITDA for the three and six months ended June 30, 2024, and June
30, 2023.
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
(thousands of
United States dollars)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Restated(i)
|
|
|
|
Restated(i)
|
Net income for the
period
|
$
472,016
|
|
$
323,670
|
|
$
819,208
|
|
$
2,140,561
|
Finance
costs
|
34,473
|
|
35,837
|
|
70,738
|
|
59,285
|
Amortization of
property, plant and mine development
|
378,389
|
|
386,314
|
|
735,614
|
|
690,273
|
Income and mining tax
expense
|
238,190
|
|
137,618
|
|
380,046
|
|
266,226
|
EBITDA
|
1,123,068
|
|
883,439
|
|
2,005,606
|
|
3,156,345
|
Foreign currency
translation loss (gain)
|
363
|
|
4,014
|
|
(4,184)
|
|
4,234
|
Realized and
unrealized loss (gain) on derivative
financial instruments
|
19,608
|
|
(26,433)
|
|
65,543
|
|
(32,972)
|
Transaction costs
related to acquisitions
|
—
|
|
1,674
|
|
—
|
|
16,912
|
Revaluation gain on
Yamana Transaction
|
—
|
|
—
|
|
—
|
|
(1,543,414)
|
Environmental
remediation
|
3,108
|
|
(1,420)
|
|
4,907
|
|
(1,977)
|
Net loss on disposal
of property, plant and equipment
|
16,819
|
|
1,058
|
|
20,366
|
|
3,601
|
Purchase price
allocation to inventory
|
—
|
|
22,821
|
|
—
|
|
22,821
|
Other(ii)
|
13,215
|
|
—
|
|
13,215
|
|
—
|
Adjusted
EBITDA
|
$ 1,176,181
|
|
$
885,153
|
|
$
2,105,453
|
|
$
1,625,550
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Yamana Transaction.
|
(ii) Other adjustments
relate to retroactive payments that management considers not
reflective of the Company's underlying performance in the current
period.
|
Cash provided by operating activities before changes in
non-cash working capital balances and cash provided by operating
activities before changes in non-cash working capital balances per
share
Cash provided by operating activities before changes in non-cash
working capital balances and cash provided by operating activities
before changes in non-cash working capital balances per share are
calculated by adjusting the cash provided by operating activities
as shown in the condensed interim consolidated statements of cash
flows for the effects of changes in non-cash working capital
balances such as income taxes, inventories, other current assets,
accounts payable and accrued liabilities and interest payable. The
per share amount is calculated by dividing cash provided by
operating activities before changes in non-cash working capital
balances by the weighted average number of shares outstanding at
the end of the period on a basic basis. The Company believes that
changes in working capital can be volatile due to numerous factors,
including the timing of payments. Management uses these measures
to, and believes they are useful to investors so they can, assess
the underlying operating cash flow performance and future operating
cash flow generating capabilities of the Company in conjunction
with other data prepared in accordance with IFRS. A reconciliation
of these measures to the nearest IFRS measure is provided
below.
Free cash flow and free cash flow before changes in non-cash
working capital balances
Free cash flow is calculated by deducting additions to property,
plant and mine development from the cash provided by operating
activities line item as recorded in the condensed interim
consolidated statements of cash flows.
Free cash flow before changes in non-cash components of working
capital is calculated by excluding items such as the effect of
changes in non-cash components of working capital from free cash
flow, which includes income taxes, inventory, other current assets,
accounts payable and accrued liabilities and interest payable.
The Company believes that these generally accepted industry
measures are useful in that they allow for the evaluation of the
Company's ability to repay creditors and return cash to
shareholders without relying on external sources of funding. Free
cash flow and free cash flow before changes in non-cash components
of working capital also provide investors with information about
the Company's financial position and its ability to generate cash
to fund operational and capital requirements as well as return cash
to shareholders. Management uses these measures in conjunction with
other data prepared in accordance with IFRS to, and believes it is
useful to investors so they can, understand and monitor the cash
generating ability of the Company.
The following tables set out a reconciliation of cash provided
by operating activities per the condensed interim consolidated
statements of cash flows to free cash flow and free cash flow
before changes in non-cash working capital balances and to cash
provided by operating activities before changes in non-cash working
capital balances for the three and six months ended June 30, 2024, and June
30, 2023.
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
(thousands of
United States dollars)
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Restated(i)
|
|
|
|
Restated(i)
|
Cash provided by
operating activities
|
$
961,336
|
|
$
722,000
|
|
$
1,744,511
|
|
$
1,371,613
|
Additions to property,
plant and mine development
|
(404,098)
|
|
(423,621)
|
|
(791,685)
|
|
(808,555)
|
Free Cash
Flow
|
557,238
|
|
298,379
|
|
952,826
|
|
563,058
|
Changes in income
taxes
|
(46,426)
|
|
(65,428)
|
|
(46,802)
|
|
(89,405)
|
Changes in
inventory
|
37,028
|
|
28,815
|
|
8,856
|
|
26,747
|
Changes in other
current assets
|
84,118
|
|
102,810
|
|
57,500
|
|
83,420
|
Changes in accounts
payable and accrued liabilities
|
(47,908)
|
|
(108,128)
|
|
6,082
|
|
(100,859)
|
Changes in interest
payable
|
(1,900)
|
|
12,955
|
|
(6,831)
|
|
10,307
|
Free cash flow
before changes in non-cash working capital
balances
|
$
582,150
|
|
$
269,403
|
|
$
971,631
|
|
$
493,268
|
Additions to property,
plant and mine development
|
404,098
|
|
423,621
|
|
791,685
|
|
808,555
|
Cash provided by
operating activities before changes in
non-cash working capital balances
|
$
986,248
|
|
$
693,024
|
|
$1,763,316
|
|
$1,301,823
|
|
|
|
|
|
|
|
|
Cash provided by
operating activities per share - basic
|
$
1.92
|
|
$
1.46
|
|
$
3.50
|
|
$
2.85
|
Cash provided by
operating activities before changes in
non-cash working capital balances per share - basic
|
$
1.97
|
|
$
1.40
|
|
$
3.54
|
|
$
2.70
|
Free cash flow per
share - basic
|
$
1.12
|
|
$
0.60
|
|
$
1.91
|
|
$
1.17
|
|
|
|
|
|
|
|
|
Free cash flow
before changes in non-cash working capital
balances - basic
|
$
1.17
|
|
$
0.55
|
|
$
1.95
|
|
$
1.02
|
|
|
|
|
|
|
|
|
Note:
|
|
|
|
|
|
|
|
(i) Certain previously
reported line items have been restated to reflect the final
purchase price allocation of the Yamana Transaction
|
Operating margin
Operating margin is calculated by deducting production costs
from revenue from mining operations. In order to reconcile
operating margin to net income as recorded in the condensed interim
consolidated financial statements, the Company adds the following
items to the operating margin: income and mining taxes expense;
other expenses (income); care and maintenance expenses; foreign
currency translation (gain) loss; environmental remediation costs;
gain (loss) on derivative financial instruments; finance costs;
general and administrative expenses; amortization of property,
plant and mine development; exploration and corporate development
expenses; and revaluation gain and impairment losses (reversals).
The Company believes that operating margin is a useful measure to
investors as it reflects the operating performance of its
individual mines associated with the ongoing production and sale of
gold and by-product metals without allocating Company-wide
overhead, including exploration and corporate development expenses,
amortization of property, plant and mine development, general and
administrative expenses, finance costs, gain and losses on
derivative financial instruments, environmental remediation costs,
foreign currency translation gains and losses, other expenses and
income and mining tax expenses. Management uses this measure
internally to plan and forecast future operating results.
Management believes this measure is useful to investors as it
provides them with additional information about the Company's
underlying operating results and should be evaluated in conjunction
with other data prepared in accordance with IFRS. For a
reconciliation of operating margin to revenue from mining
operations reported in the Company's financial statements, see
"Summary of Operations Key Performance Indicators" below.
Sustaining capital expenditures and development capital
expenditures
Capital expenditures are classified into sustaining capital
expenditures and development capital expenditures. Sustaining
capital expenditures are expenditures incurred during the
production phase to sustain and maintain existing assets so they
can achieve constant expected levels of production from which the
Company will derive economic benefits. Sustaining capital
expenditures include expenditure for assets to retain their
existing productive capacity as well as to enhance performance and
reliability of the operations. Development capital expenditures
represent the spending at new projects and/or expenditures at
existing operations that are undertaken with the intention to
increase production levels or mine life above the current plans.
Management uses these measures in the capital allocation process
and to assess the effectiveness of its investments. Management
believes these measures are useful so investors can assess the
purpose and effectiveness of the capital expenditures split between
sustaining and development in each reporting period. The
classification between sustaining and development capital
expenditures does not have a standardized definition in accordance
with IFRS and other companies may classify expenditures in a
different manner.
The following tables set out a reconciliation of sustaining
capital expenditures and development capital expenditures to the
additions to property, plant and mine development per the condensed
interim consolidated statements of cash flows for the three and six
months ended June 30, 2024 and
June 30, 2023.
(thousands of
United States dollars)
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2024
|
|
20231
|
|
2024
|
|
20231
|
Sustaining capital
expenditures(ii)
|
$
205,340
|
|
$
206,914
|
|
$
395,947
|
|
$
381,545
|
Development capital
expenditures(ii)
|
201,962
|
|
209,133
|
|
383,373
|
|
376,236
|
Total Capital
Expenditures
|
$
407,302
|
|
$
416,047
|
|
$
779,320
|
|
$
757,781
|
Working capital
adjustments
|
(3,204)
|
|
7,574
|
|
12,365
|
|
50,774
|
Additions to
property, plant and mine development per the
condensed interim consolidated statements of cash
flows
|
$
404,098
|
|
$
423,621
|
|
$
791,685
|
|
$
808,555
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
(i) The information set
out in this table reflects the Company's 50% interest in Canadian
Malartic up to and including March 30, 2023 and 100% interest
thereafter.
|
(ii) Sustaining capital
expenditures and development capital expenditures include
capitalized exploration.
|
Net debt
Net debt is calculated by adjusting the total of the current
portion of long-term debt and non-current long-term debt as
recorded on the condensed interim consolidated balance sheets for
deferred financing costs and cash and cash equivalents. Management
believes the measure of net debt is useful to help investors to
determine the Company's overall debt position and to evaluate the
future debt capacity of the Company.
The following tables set out a reconciliation of long-term debt
per the condensed interim consolidated balance sheets to net debt
as at June 30, 2024, and December 31, 2023.
|
As at
|
|
As at
|
(thousands of
United States dollars)
|
June 30,
2024
|
|
December 31,
2023
|
Current portion of
long-term debt per the condensed interim
consolidated balance sheets
|
$
740,000
|
|
$
100,000
|
Non-current portion of
long-term debt
|
1,101,670
|
|
1,743,086
|
Long-term
debt
|
$
1,841,670
|
|
$
1,843,086
|
Adjustment:
|
|
|
|
Cash and cash
equivalents
|
$
(921,989)
|
|
$
(338,648)
|
Net Debt
|
$
919,681
|
|
$
1,504,438
|
Forward-Looking Non-GAAP Measures
This news release also contains information as to estimated
future total cash costs per ounce and AISC per ounce. The estimates
are based upon the total cash costs per ounce and AISC per ounce
that the Company expects to incur to mine gold at its mines and
projects and, consistent with the reconciliation of these actual
costs referred to above, do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time as each project is developed and mined.
It is therefore not practicable to reconcile these forward-looking
non-GAAP financial measures to the most comparable IFRS
measure.
Forward-Looking Statements
The information in this news release has been prepared as at
July 31, 2024. Certain statements
contained in this news release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and "forward-looking
information" under the provisions of Canadian provincial securities
laws and are referred to herein as "forward-looking statements".
All statements, other than statements of historical fact, that
address circumstances, events, activities or developments that
could, or may or will occur are forward-looking statements. When
used in this news release, the words "achieve", "aim",
"anticipate", "commit", "could", "estimate", "expect", "forecast",
"future", "guide", "plan", "potential", "schedule", "target",
"track", "will", and similar expressions are intended to identify
forward-looking statements. Such statements include the Company's
forward-looking guidance, including metal production, estimated ore
grades, recovery rates, project timelines, drilling targets or
results, life of mine estimates, total cash costs per ounce, AISC
per ounce, minesite costs per tonne, other expenses and cash flows;
the potential for additional gold production at the Company's
sites; the estimated timing and conclusions of the Company's
studies and evaluations; the methods by which ore will be extracted
or processed; the Company's expansion plans at Detour Lake,
Meliadine Phase 2, Amaruq underground, Upper Beaver and Odyssey,
including the timing, funding, completion and commissioning thereof
and the commencement of production therefrom; the Company's plans
at Hope Bay and San Nicolás; statements concerning other expansion
projects, recovery rates, mill throughput, optimization efforts and
projected exploration, including costs and other estimates upon
which such projections are based; timing and amounts of capital
expenditures, other expenditures and other cash needs, and
expectations as to the funding thereof; estimates of future mineral
reserves, mineral resources, mineral production and sales; the
projected development of certain ore deposits, including estimates
of exploration, development and production and other capital costs
and estimates of the timing of such exploration, development and
production or decisions with respect to such exploration,
development and production; anticipated cost inflation and its
effect on the Company's costs and results; estimates of mineral
reserves and mineral resources and the effect of drill results and
studies on future mineral reserves and mineral resources; the
Company's ability to obtain the necessary permits and
authorizations in connection with its proposed or current
exploration, development and mining operations, including at
Meliadine, Upper Beaver and San Nicolás, and the anticipated timing
thereof; future exploration; the anticipated timing of events with
respect to the Company's mine sites; the Company's plans and
strategies with respect to climate change and greenhouse gas
emissions reductions; the sufficiency of the Company's cash
resources; the Company's plans with respect to hedging and the
effectiveness of its hedging strategies; future activity with
respect to the Company's unsecured revolving bank credit facility,
the term loan facility and other indebtedness; future dividend
amounts, record dates, payment dates and discount rates under the
dividend reinvestment plan; plans with respect to offering
securities pursuant to the base shelf prospectus; plans with
respect to activity under the NCIB; and anticipated trends with
respect to the Company's operations, exploration and the funding
thereof. Such statements reflect the Company's views as at the date
of this news release and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be
placed on such statements. Forward-looking statements are
necessarily based upon a number of factors and assumptions that,
while considered reasonable by Agnico Eagle as of the date of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
material factors and assumptions used in the preparation of the
forward-looking statements contained herein, which may prove to be
incorrect, include, but are not limited to, the assumptions set
forth herein and in management's discussion and analysis
("MD&A") and the Company's Annual Information Form ("AIF") for
the year ended December 31, 2023
filed with Canadian securities regulators and that are included in
its Annual Report on Form 40-F for the year ended December 31, 2023 ("Form 40-F") filed with the
U.S. Securities and Exchange Commission (the "SEC") as well as:
that there are no significant disruptions affecting operations;
that production, permitting, development, expansion and the ramp-up
of operations at each of Agnico Eagle's properties proceeds on a
basis consistent with current expectations and plans; that the
relevant metal prices, foreign exchange rates and prices for key
mining and construction inputs (including labour and electricity)
will be consistent with Agnico Eagle's expectations; that Agnico
Eagle's current estimates of mineral reserves, mineral resources,
mineral grades and metal recovery are accurate; that there are no
material delays in the timing for completion of ongoing growth
projects; that seismic activity at the Company's operations at
LaRonde, Goldex, Fosterville and
other properties is as expected by the Company and that the
Company's efforts to mitigate its effect on mining operations,
including with respect to community relations, are successful; that
the Company's current plans to address climate change and reduce
greenhouse gas emissions 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 measures in
response to pandemics or other health emergencies 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, pandemics or
other health emergencies 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 at LaRonde,
Goldex and Fosterville; mining
risks; community protests, including by Indigenous groups; risks
associated with foreign operations; governmental and environmental
regulation; the volatility of the Company's stock price; risks
associated with the Company's currency, fuel and by-product metal
derivative strategies; the current interest rate environment; the
potential for major economies to encounter a slowdown in economic
activity or a recession; the potential for increased conflict or
hostilities in various regions, including Europe and the Middle East; and the extent and manner of
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 Regarding Certain Climate Change and GHG
Disclosure
This news release includes information with respect to climate
change plans and strategies and GHG emissions reductions plans and
strategies that has been prepared for the purpose of assisting the
Company's stakeholders in understanding certain key elements of the
Company's climate and other sustainability-related objectives,
targets and risks and may not be suitable or appropriate for other
purposes. This information has been provided from a different
perspective and in more detail than is required to be included in
mandatory securities filings. None of the information in this news
release relating to climate change plans and strategies and GHG
emissions reductions plans and strategies has been audited.
Due to the inherent uncertainty and limitations in measuring GHG
emissions and intensity, energy consumption and composition,
project type GHG reduction potential and likelihood, and
climate-related risks and opportunities under the calculation
methodologies used in the preparation of these and other data and
metrics, all such information in this news release are estimates.
There may also be differences in the manner that other parties
calculate, report, test or substantiate such information compared
to the Company, which means that the information reported by other
parties may not be comparable to that reported by the Company.
Further, as climate and other sustainability-related reporting
evolves, there could be changes to the market practices,
taxonomies, methodologies, criteria and standards that are used to
classify, measure, test, substantiate and report on such matters,
so this information may not be comparable to information prepared
or reported by the Company at a different time. However, all
information in this news release concerning the Company's climate
and other sustainability-related objectives and impacts are based
on what the Company believes to be adequate and proper
substantiation in accordance with internationally recognized
methodology.
Notes to Investors Regarding the Use of Mineral
Resources
The mineral reserve and mineral resource estimates contained in
this news release have been prepared in accordance with the
Canadian securities administrators' (the "CSA") National Instrument
43-101 – Standards of Disclosure for Mineral Projects ("NI
43-101").
In 2019, the SEC's disclosure requirements and policies for
mining properties were amended to more closely align with current
industry and global regulatory practices and standards, including
NI 43-101. However, Canadian issuers that report in 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 recognizes "measured
mineral resources", "indicated mineral resources" and "inferred
mineral resources", investors should not assume that any part or
all of the mineral deposits in these categories will ever be
converted into a higher category of mineral resources or into
mineral reserves. These terms have a great amount of uncertainty as
to their economic and legal feasibility. Accordingly,
investors are cautioned not to assume that any "measured mineral
resources", "indicated mineral resources" or "inferred mineral
resources" that the Company reports in this news release are or
will be economically or legally mineable. Under Canadian
regulations, estimates of inferred mineral resources may not form
the basis of feasibility or pre-feasibility studies, except in
limited circumstances.
Further, "inferred mineral resources" have a great amount of
uncertainty as to their existence and as to their economic and
legal feasibility. It cannot be assumed that any part or all of an
inferred mineral resource will ever be upgraded to a higher
category.
The mineral reserve and mineral resource data set out in this
news release are estimates, and no assurance can be given that the
anticipated tonnages and grades will be achieved or that the
indicated level of recovery will be realized. The Company does not
include equivalent gold ounces for by-product metals contained in
mineral reserves in its calculation of contained ounces. Mineral
reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news
release relating to 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 December 31, 2023, including
information regarding data verification, key assumptions,
parameters and methods used to estimate mineral reserves and
mineral resources and the risks that could materially affect the
development of the mineral reserves and mineral resources required
by sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d) of NI
43-101 can be found in the Company's AIF and MD&A filed on
SEDAR+ each of which forms a part of the Company's Form 40-F filed
with the SEC on EDGAR and in the following technical reports filed
on SEDAR+ in respect of the Company's material mineral properties:
NI 43-101 Technical Report of the LaRonde complex in 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); and the Detour Lake Operation, Ontario, Canada NI 43-101
Technical Report as at July 26, 2021 (October 15, 2021).
APPENDIX A – EXPLORATION DETAILS
MRMR update for Upper Beaver gold-copper project
The mineral reserves and mineral resources ("MRMR") estimate for
the Upper Beaver gold-copper project in the Kirkland Lake camp in Ontario has been updated to an effective date
of June 30, 2024 from the previously
released MRMR estimate as at December 31,
2023, The December 2023 MRMR
estimate was essentially unchanged since December 31, 2017, and was based on a historic
prefeasibility study dated March 29,
2017.
As a result of exploration drilling campaigns conducted by the
Company during the 2017 to 2022 period, additional drill results
totalling 226,418 metres in 441 holes were incorporated for the
first time into the June 30, 2024
MRMR update, which used a database closure date of April 3, 2024. No new drilling has been conducted
at Upper Beaver since this date.
The updated MRMR estimate for Upper Beaver as at June 30, 2024, and the variance from the estimate
as at December 31, 2023 are set out
in the table below. The parameters of the updated MRMR estimate are
set out in the notes of the table below.
Upper Beaver Mineral Reserves and Mineral Resources at
June 30, 2024 and at December 31, 2023
Category
|
As at June 30,
20244
|
As at December 31,
2023
|
Variance
|
000
Tonnes
|
Au
(g/t)
|
Au
000 oz
|
Cu
(%)
|
Cu
000 t
|
000
Tonnes
|
Au
(g/t)
|
Au
000 oz
|
Cu
(%)
|
Cu
000 t
|
Au
000 oz
|
Cu
000 t
|
Mineral
Reserves
|
Total Proven
& Probable1
|
—
|
—
|
—
|
—
|
—
|
7,992
|
5.43
|
1,395
|
0.25
|
20
|
-1,395
|
-20
|
Mineral
Resources
|
Indicated
OP2
|
3,326
|
1.85
|
198
|
0.14
|
5
|
—
|
—
|
—
|
—
|
—
|
198
|
5
|
Indicated
UG3
|
27,550
|
3.66
|
3,242
|
0.24
|
66
|
3,636
|
3.45
|
403
|
0.14
|
5
|
2,838
|
61
|
Total
Indicated
|
30,876
|
3.47
|
3,440
|
0.23
|
71
|
3,636
|
3.45
|
403
|
0.14
|
5
|
3,036
|
66
|
Inferred
OP2
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Inferred
UG3
|
2,959
|
4.13
|
393
|
0.36
|
11
|
8,688
|
5.07
|
1,416
|
0.20
|
17
|
-1,023
|
-7
|
Total
Inferred
|
2,959
|
4.13
|
393
|
0.36
|
11
|
8,688
|
5.07
|
1,416
|
0.20
|
17
|
-1,023
|
-7
|
Notes:
|
1. Mineral reserves and
mineral resources as at December 31, 2023 were reported at a net
smelter value cut-off of C$125/t. The assumptions used for the
mineral reserve estimate as at December 2023 were US$1,200 per
ounce of gold, US$2.75 per pound of copper, an exchange rate of
CAD$1.25 per US$1.00 and metallurgical recoveries of 95% for gold
and 90% for copper.
|
2. Open pit ("OP")
mineral resources as at June 30, 2024 are reported at a net smelter
value cut-off of C$43.49/t.
|
3. Underground ("UG")
mineral resources as at June 30, 2024 are reported at a net smelter
value cut-off of C$118.17/t. Underground mineral resources as at
December 31, 2023 were reported at a net smelter value cut-off of
C$125/t. Underground measured and indicated mineral resources are
reported within mineable shapes and include internal and external
dilution. Inferred mineral resources are reported within mineable
shapes and include internal dilution. Mining and metallurgical
recoveries are not applied on mineral resource.
|
4. The assumptions used
for the mineral resource estimate as at June 30, 2024 were US$1,750
per ounce of gold, US$4.00 per pound of copper, an exchange rate of
CAD$1.35 per US$1.00 used and metallurgical recoveries of 95% for
gold and 83% for copper.
|
The main variances in the MRMR estimates between June 30, 2024, and December 31, 2023 are described below:
- Mineral Reserves – In the updated estimate, the mineral
reserves have been reclassified as mineral resources that are
supported by a positive internal preliminary economic assessment,
which includes both indicated mineral resources and inferred
mineral resources, that was completed in June 2024. As additional geotechnical fieldwork
and metallurgical test work is completed through the remainder of
the year, the Company anticipates that most indicated mineral
resources will be converted into probable mineral reserves at
year-end 2024
- Measured and Indicated Mineral Resources – The increase
of 3.0 million ounces of gold (or 753%) and 66,000 tonnes of copper
(or 1,280%) in the June 30, 2024
estimate compared to the December 31,
2023 estimate is primarily due to the incorporation of new
drilling results and the reclassification of mineral reserves into
indicated mineral resources
- Inferred Mineral Resources – The decrease of 1.0 million
ounces of gold (or -72%) and 7,000 tonnes of copper (or -38%) in
the June 30, 2024 estimate compared
to the December 31, 2023 estimate is
primarily due to the successful conversion drilling program
Additional details on the Upper Beaver mineral reserves and
mineral resources at December 31,
2023 are set out in the Company's news release dated
February 15, 2024.
EXPLORATION DRILL COLLAR COORDINATES
Drill hole
|
UTM East*
|
UTM North*
|
Elevation
(metres above
sea level)
|
Azimuth
(degrees)
|
Dip
(degrees)
|
Length
(metres)
|
Odyssey mine
|
MEX23-310ZA
|
718664
|
5334762
|
307
|
174
|
-61
|
2,050
|
MEX24-311
|
718664
|
5334762
|
307
|
145
|
-60
|
2,409
|
MEX24-311Z
|
718664
|
5334762
|
307
|
145
|
-60
|
2,070
|
MEX24-312
|
718664
|
5334762
|
307
|
155
|
-74
|
1,753
|
MEX24-312Z
|
718664
|
5334762
|
307
|
155
|
-74
|
1,777
|
MEX24-314
|
718664
|
5334762
|
307
|
154
|
-55
|
1,599
|
Detour Lake
|
DLM24-839
|
586805
|
5541735
|
293
|
177
|
-66
|
588
|
DLM24-843
|
587883
|
5541783
|
286
|
178
|
-57
|
876
|
DLM24-851
|
586844
|
5541744
|
295
|
176
|
-60
|
474
|
DLM24-855
|
586962
|
5541810
|
303
|
179
|
-65
|
699
|
DLM24-860
|
586848
|
5541874
|
304
|
178
|
-67
|
747
|
DLM24-870
|
587168
|
5541594
|
289
|
177
|
-59
|
351
|
DLM24-871
|
587284
|
5541663
|
291
|
176
|
-56
|
501
|
DLM24-873
|
587162
|
5541698
|
294
|
176
|
-57
|
447
|
DLM24-874
|
588888
|
5541621
|
284
|
178
|
-58
|
819
|
DLM24-884
|
587283
|
5541869
|
296
|
174
|
-56
|
746
|
DLM24-891C
|
588927
|
5541758
|
285
|
180
|
-65
|
162
|
DLM24-895AW
|
587001
|
5541947
|
306
|
176
|
-64
|
567
|
DLM24-897E
|
588036
|
5541696
|
287
|
179
|
-54
|
729
|
DLM24-899A
|
587041
|
5541856
|
306
|
179
|
-64
|
675
|
DLM24-903
|
586764
|
5541782
|
294
|
178
|
-61
|
633
|
DLM24-908E
|
588764
|
5541748
|
286
|
180
|
-57
|
822
|
DLM24-911A
|
587039
|
5541905
|
307
|
176
|
-69
|
876
|
DLM24-916W
|
586721
|
5541839
|
295
|
180
|
-62
|
297
|
DLM24-923
|
586722
|
5541916
|
299
|
176
|
-66
|
726
|
DLM24-927
|
586686
|
5541799
|
292
|
180
|
-60
|
552
|
DLM24-930A
|
588243
|
5541718
|
288
|
179
|
-56
|
948
|
Hope Bay
|
HBM24-177B
|
435381
|
7549031
|
26
|
231
|
-58
|
1092
|
HBM24-183
|
435244
|
7549203
|
26
|
237
|
-57
|
857
|
HBM24-188
|
435572
|
7548364
|
26
|
235
|
-51
|
762
|
HBM24-189
|
435502
|
7548335
|
26
|
229
|
-51
|
674
|
HBM24-191
|
435391
|
7548479
|
26
|
245
|
-52
|
488
|
HBM24-201
|
435024
|
7548255
|
62
|
88
|
-59
|
650
|
HBM24-206A
|
434853
|
7548121
|
35
|
71
|
-52
|
822
|
HBM24-207
|
434899
|
7548269
|
57
|
70
|
-68
|
860
|
HBM24-209
|
434848
|
7548176
|
36
|
70
|
-65
|
915
|
*Coordinate Systems:
NAD 83 UTM zone 17N for Odyssey; NAD 1983 UTM zone 17N for Detour
Lake; and NAD 1983 UTM zone 13N for Hope Bay
|
APPENDIX B – FINANCIAL INFORMATION
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
(Restated)(i)
|
|
|
|
(Restated)(i)
|
Net income - key
line items:
|
|
|
|
|
|
|
|
Revenue from mine
operations:
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
132,888
|
|
133,865
|
|
276,505
|
|
236,085
|
LaRonde zone 5
mine
|
37,414
|
|
36,558
|
|
80,029
|
|
66,080
|
Canadian
Malartic(iii)
|
418,472
|
|
335,871
|
|
746,589
|
|
473,945
|
Goldex
|
83,536
|
|
73,272
|
|
155,920
|
|
141,335
|
Ontario
|
|
|
|
|
|
|
|
Detour Lake
|
359,416
|
|
317,068
|
|
702,373
|
|
623,663
|
Macassa
|
153,476
|
|
112,879
|
|
292,869
|
|
230,738
|
Nunavut
|
|
|
|
|
|
|
|
Meliadine
|
220,276
|
|
157,179
|
|
422,515
|
|
326,713
|
Meadowbank
|
308,615
|
|
195,856
|
|
558,000
|
|
405,669
|
Australia
|
|
|
|
|
|
|
|
Fosterville
|
145,026
|
|
168,074
|
|
266,061
|
|
337,375
|
Europe
|
|
|
|
|
|
|
|
Kittila
|
133,160
|
|
102,868
|
|
247,223
|
|
218,887
|
Mexico
|
|
|
|
|
|
|
|
Pinos Altos
|
67,790
|
|
50,389
|
|
116,190
|
|
101,837
|
La India
|
16,552
|
|
34,318
|
|
42,170
|
|
65,531
|
Revenues from mining
operations
|
$
2,076,621
|
|
$
1,718,197
|
|
$
3,906,444
|
|
$
3,227,858
|
Production
costs
|
771,984
|
|
743,253
|
|
1,555,569
|
|
1,396,397
|
Total operating
margin(ii)
|
1,304,637
|
|
974,944
|
|
2,350,875
|
|
1,831,461
|
Amortization of
property, plant and mine development
|
378,389
|
|
386,314
|
|
735,614
|
|
690,273
|
Revaluation
gain(iv)
|
—
|
|
—
|
|
—
|
|
(1,543,414)
|
Exploration, corporate
and other
|
216,042
|
|
127,342
|
|
416,007
|
|
277,815
|
Income before income
and mining taxes
|
710,206
|
|
461,288
|
|
1,199,254
|
|
2,406,787
|
Income and mining taxes
expense
|
238,190
|
|
137,618
|
|
380,046
|
|
266,226
|
Net income for the
period
|
$
472,016
|
|
$
323,670
|
|
$
819,208
|
|
$
2,140,561
|
Net income per
share — basic
|
$
0.95
|
|
$
0.66
|
|
$
1.64
|
|
$
4.45
|
Net income per
share — diluted
|
$
0.94
|
|
$
0.65
|
|
$
1.64
|
|
$
4.43
|
|
|
|
|
|
|
|
|
Cash
flows:
|
|
|
|
|
|
|
|
Cash provided by
operating activities
|
$
961,336
|
|
$
722,000
|
|
$
1,744,511
|
|
$
1,371,613
|
Cash used in investing
activities
|
$
(424,576)
|
|
$
(450,202)
|
|
$
(837,624)
|
|
$ (1,848,947)
|
Cash (used in) provided
by financing activities
|
$
(137,234)
|
|
$
(582,351)
|
|
$
(320,268)
|
|
$
254,082
|
|
|
|
|
|
|
|
|
Realized
prices:
|
|
|
|
|
|
|
|
Gold
(per ounce)
|
$
2,342
|
|
$
1,975
|
|
$
2,202
|
|
$
1,935
|
Silver
(per ounce)
|
$
30.09
|
|
$
24.43
|
|
$
27.21
|
|
$
23.72
|
Zinc
(per tonne)
|
$
2,792
|
|
$
2,343
|
|
$
2,625
|
|
$
2,685
|
Copper
(per tonne)
|
$
9,192
|
|
$
7,898
|
|
$
9,720
|
|
$
8,590
|
AGNICO EAGLE MINES
LIMITED
|
SUMMARY OF
OPERATIONS KEY PERFORMANCE INDICATORS
|
(thousands of
United States dollars, except where noted)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
Payable
production(v):
|
|
|
|
|
|
|
|
Gold
(ounces):
|
|
|
|
|
|
|
|
Quebec
|
|
|
|
|
|
|
|
LaRonde
mine
|
62,260
|
|
58,635
|
|
114,075
|
|
118,168
|
LaRonde zone 5
mine
|
20,074
|
|
18,145
|
|
36,623
|
|
38,219
|
Canadian
Malartic(iii)
|
180,871
|
|
177,755
|
|
367,777
|
|
258,440
|
Goldex
|
33,750
|
|
37,716
|
|
68,138
|
|
71,739
|
Ontario
|
|
|
|
|
|
|