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