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May 24, 2023Agnico Eagle Mines informa los resultados del segundo trimestre de 2023
![Jul 05, 2023](/themes/hestia/images/news-details-icon1.webp)
Mr. Ammar Al-Joundi reports:
(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, July 26, 2023 /PRNewswire/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the second quarter of 2023.
"Agnico Eagle delivered another strong operational quarter, with record quarterly gold production and better than expected costs driving solid financial results. With this excellent start to the year, we are tracking very well to meet our annual production and cost guidance. I would also like to commend our team for one of the best quarterly safety performances in the Company's history," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "In June we released an update on the Odyssey project at Canadian Malartic, which highlighted an improved production profile, a mine life extension to 2042 and a significant geological upside. We continue to advance the various studies of our key pipeline projects in the Abitibi Gold Belt, with the objective of leveraging our existing infrastructure and generating value for our shareholders. We expect to report the results of these ongoing studies through the first half of 2024. Finally, in the second quarter, we had strong exploration results from Detour, Meliadine, Kittila and at Hope Bay, with the intersection of higher grade mineralization at the Madrid deposit," added Mr. Al-Joundi.
Second quarter 2023 highlights
_____________________________
1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
2 Total cash costs per ounce is a non-GAAP ratio that is not a standardized financial measure under IFRS and, unless otherwise specified, is reported on a by-product basis in this news release. For the detailed calculation of production costs per ounce, the reconciliation of total cash costs to production costs and information about total cash costs per once on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
3 AISC per ounce is a non-GAAP ratio that is not a standardized financial measure under the IFRS and, unless otherwise specified, is reported on a by-product basis in this news release. For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
4 Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under IFRS. For a reconciliation to net income and net income per share see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
5 Net debt is a non-GAAP measure that is not a standardized measure under IFRS. For a reconciliation to long-term debt, see "Reconciliation of non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
Second Quarter 2023 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Thursday, July 27, 2023 at 11:00 AM (E.D.T.) to discuss the Company's second quarter 2023 financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-416-764-8659 or toll-free 1-888-664-6392. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Via URL Entry:
To join the conference call without operator assistance, you may register and enter your phone number at https://bit.ly/3CqLElb to receive an instant automated call back.
Replay Archive:
Please dial 1-416-764-8677 or toll-free 1-888-390-0541, access code 008251#. The conference call replay will expire on August 27, 2023.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Second Quarter 2023 Financial and Production Results
In the second quarter of 2023, net income was $326.8 million ($0.66 per share). This result includes the following items (net of tax): derivative gains on financial instruments of $20.1 million ($0.04 per share), a non-cash fair value adjustment on inventory sold during the quarter related to the acquisition of the remaining 50% of Canadian Malartic included in production costs of $13.7 million ($0.03 per share), foreign currency translation gains on deferred tax liabilities of $9.6 million ($0.02 per share), non-cash foreign currency translation losses of $4.0 million ($0.01 per share) and various other adjustment losses of $7.5 million ($0.01 per share).
Excluding the above items results in adjusted net income of $322.4 million or $0.65 per share for the second quarter of 2023. For the second quarter of 2022, the Company reported net income of $290.4 million ($0.64 per share).
Included in the second quarter of 2023 net income, and not adjusted above, is a non-cash stock option expense of $2.5 million ($0.01 per share).
In the first six months of 2023, the Company reported net income of $2,143.7 million ($4.45 per share) compared to the first six months of 2022, when net income was $409.5 million ($0.97 per share).
The increase in net income in the second quarter of 2023 compared to the prior-year period is due to a gain on derivative financial instruments, higher mine operating margins6 from higher sales volumes resulting from the acquisition of the remaining 50% of Canadian Malartic and lower income and mining tax expenses, partially offset by higher amortization.
The increase in net income in the first six months of 2023 is primarily due to a remeasurement gain 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. The fair value of the Company's previously held 50% interest and the resulting gain on remeasurement, along with the fair values allocated to assets acquired and liabilities assumed are preliminary, and are subject to adjustment based on further analysis and evaluation over the course of the measurement period which may not exceed 12 months from the acquisition date.
In the second quarter of 2023, cash provided by operating activities was $722.0 million ($693.0 million before changes in non-cash components of working capital), compared to the second quarter of 2022 when cash provided by operating activities was $633.3 million ($706.0 million before changes in non-cash components of working capital). Cash provided by operating activities (before changes in non-cash components of working capital) was slightly lower in the second quarter of 2023 when compared to the prior-year period as higher revenues from higher sales volumes and metals prices was more than offset by higher production costs and higher financing costs.
In the first six months of 2023, cash provided by operating activities was $1,371.6 million ($1,301.8 million before changes in non-cash components of working capital), compared to the first six months of 2022 when cash provided by operating activities was $1,140.7 million ($1,072.0 million before changes in non-cash components of working capital). Cash provided by operating activities (before changes in non-cash components of working capital) increased when compared to the prior-year period primarily due to higher sales volumes from a full six months contribution in 2023 from the Detour Lake, Macassa and Fosterville mines as opposed to 149 days in the first six months of 2022 following the closing of the merger (the "Merger") with Kirkland Lake Gold Ltd. and higher sales volumes from the acquisition of the remaining 50% of the Canadian Malartic complex.
_____________________________
6 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a reconciliation to net income see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
In the second quarter of 2023, the Company's payable gold production was a record 873,204 ounces. This compares to quarterly payable gold production of 858,170 ounces in the prior-year period as the additional production from the acquisition of the remaining 50% of the Canadian Malartic complex was partially offset by lower production at the Detour Lake and LaRonde mines.
In the first six months of 2023, the Company's payable gold production was 1,686,017 ounces compared to the first six months of 2022 when payable gold production was 1,518,774 ounces. The increase in payable gold production is a result of additional days of production in 2023 at the Detour Lake, Macassa and Fosterville mines as described above and the additional production from the acquisition of the remaining 50% of the Canadian Malartic complex, partially offset by lower production at the Detour Lake and LaRonde mines.
In the second quarter of 2023, production costs per ounce were $851, compared to $766 in the prior-year period and total cash costs per ounce were $840, compared to $726 in the prior-year period. Production costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne related to inflation. A detailed description of the minesite costs per tonne at each mine is set out below. Total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne related to inflation, higher royalties resulting from the acquisition of the remaining 50% of the Canadian Malartic complex and a lower fair value adjustment impacting inventory in the second quarter of 2023.
In the first six months of 2023, production costs per ounce were $828, compared to $869 in the prior-year period and total cash costs per ounce were $836, compared to $763 in the prior-year period. Production costs per ounce decreased when compared to the prior-year period primarily due to the increase in payable gold production during the period. Total cash costs per ounce increased when compared to the prior-year period primarily due to the lower fair value adjustment impacting inventory in the current year.
In the second quarter of 2023, AISC per ounce were $1,150, compared to $1,026 in the prior-year period. AISC per ounce increased in the second quarter of 2023 when compared to the prior-year period primarily due to the same reasons that caused higher total cash costs per ounce.
In the first six months of 2023, AISC per ounce were $1,138, compared to $1,051 in the prior-year period. AISC per ounce increased when compared to the prior-year period primarily due to the same reasons that caused higher total cash costs and higher sustaining capital expenditures per ounce.
Solid Cash Flow Generation Continues to Support Investment Grade Balance Sheet; Financial Flexibility Strengthened with Increased Liquidity
With the strong cash-flow generation during the second quarter, the Company used cash on hand to repay $300 million of the $1.0 billion drawn from its unsecured revolving bank credit facility used to fund the cash consideration paid in connection with the acquisition of Yamana's Canadian assets on March 31, 2023 (the "Yamana Transaction"). On April 20, 2023, the Company entered into a credit agreement with a group of financial institutions that provides the $600 million Term Loan Facility. The Company drew down in full on the Term Loan Facility on April 28, 2023 and used the proceeds to partially repay the amounts drawn on the unsecured revolving bank credit facility. The Term Loan Facility matures and all indebtedness thereunder is due and payable on April 21, 2025. The Term Loan Facility is available as a single advance in US dollars through SOFR and base rate advances, priced at the applicable rate plus a margin that ranges from 0.00% to 2.00% depending on the Company's credit rating. The Term Loan Facility may be prepaid without penalty.
As of June 30, 2023, the outstanding balance on the Company's unsecured revolving bank credit facility was $100 million, and available liquidity under this facility was approximately $1.1 billion, not including the uncommitted $600 million accordion feature. Additionally on June 30, 2023, the Company repaid out of available cash the $100 million 4.54% Series A senior notes at maturity, further reducing the Company's indebtedness.
Cash and cash equivalents decreased to $432.5 million at June 30, 2023, from the March 31, 2023 balance of $744.6 million, primarily due to debt repayment, partially offset by higher cash flow from operations (higher sales volumes and realized gold prices). At June 30, 2023 the Company's long term debt was $1,942.0 million and net debt decreased to $1,509.5 million from the March 31, 2023 balance of $1,597.9 million.
On April 7, 2023, Moody's upgraded its credit rating outlook for the Company to "positive" from "stable", while affirming the credit rating at Baa2. On June 20, 2023, Fitch Ratings affirmed its credit rating for Agnico Eagle at BBB+ with a Stable Outlook. These investment grade credit ratings 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.
In May 2023, the Company received approval from the TSX to renew its normal course issuer bid ("NCIB") pursuant to which the Company is permitted to purchase up to the lesser of (i) 5% of its issued and outstanding common shares and (ii) the number of common shares that may be purchased by the Company for an aggregate purchase price, excluding commissions, of $500.0 million. Purchases under the NCIB may continue for up to one year from the commencement date of May 4, 2023. Purchases under the NCIB will be made through the facilities of the TSX, the NYSE or other designated exchanges and alternative trading systems in Canada and the United States in accordance with applicable regulatory requirements. All common shares purchased under the NCIB will be cancelled.
Agnico Eagle believes that the NCIB provides a flexible tool as part the Company's overall capital allocation program and objectives and generates value for shareholders. In the second quarter of 2023, no purchases were made under the NCIB.
Approximately 55% of the Company's estimated Canadian dollar exposure for the remainder of the year is hedged at an average floor price above 1.32 C$/US$. Approximately 29% of the Company's estimated Euro exposure for the remainder of the year is hedged at an average floor price of approximately 1.03 US$/EUR. Approximately 58% of the Company's estimated Australian dollar exposure for the remainder of the year is hedged at an average floor price above 1.45 A$/US$. Approximately 33% of the Company's estimated Mexican peso exposure for the remainder of the year is hedged at an average floor price above 20.70 MXP/US$. The Company's full year 2023 cost guidance is based on assumed exchange rates of 1.32 C$/US$, 1.10 US$/EUR, 1.40 A$/US$ and 20.00 MXP/US$.
With the completion of the initial diesel purchase for the Company's Nunavut operations on the 2023 sealift, approximately 64% of the Company's diesel exposure for the remainder of the year is hedged at an average price of $0.69 per litre, compared to the 2023 cost guidance assumption of $0.93 per litre. The sea-lift purchase, along with financial hedges, will continue to help mitigate operating cost risks and they are expected to provide protection against diesel price inflation for the remainder of the year.
The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2023 and future guidance.
Capital Expenditures
In the second quarter of 2023, capital expenditures were $382.4 million and capitalized exploration expenditures were $33.6 million, for a total of $416.0 million. Total expected capital expenditures (including capitalized exploration) remain in line with guidance for the full year 2023.
The following table sets out capital expenditures (including sustaining capital expenditures7 and development capital expenditures7) and capitalized exploration in the second quarter of 2023.
___________________________________
7 Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial measures under IFRS. See "Note Regarding Certain Measures of Performance" and "Reconciliation of Non-GAAP Performance Measures – Reconciliation of Sustaining Capital Expenditures to Consolidated Statements of Cash Flow".
Capital Expenditures
(In thousands of U.S. dollars)
Capital Expenditures*
Capitalized Exploration
Three Months Ended
Six Months Ended
Three Months Ended
Six Months Ended
June 30, 2023
June 30, 2023
June 30, 2023
June 30, 2023
Sustaining Capital Expenditures
LaRonde complex
19,788
35,527
641
896
Canadian Malartic complex
34,086
50,670
—
—
Goldex mine
3,428
8,166
210
294
Detour Lake mine
60,678
113,962
—
—
Macassa mine
8,646
15,036
250
508
Meliadine mine
13,839
26,916
1,865
3,874
Meadowbank complex
35,624
71,255
—
—
Hope Bay project
145
147
—
—
Fosterville mine
7,252
14,921
46
346
Kittila mine
12,310
21,220
(352)
1,073
Pinos Altos mine
8,062
16,059
345
598
La India mine
45
71
6
6
Total Sustaining Capital
$ 203,903
$ 373,950
$ 3,011
$ 7,595
Development Capital Expenditures
LaRonde complex
17,813
33,107
—
—
Canadian Malartic complex
46,548
76,366
2,370
3,573
Goldex mine
8,064
16,075
774
2,052
Akasaba West project
8,706
—
Detour Lake mine
24,775
47,383
8,815
17,282
Macassa mine
16,108
37,158
7,552
14,915
Meliadine mine
33,622
49,695
3,652
5,459
Amaruq underground project
(21)
310
—
—
Hope Bay project
2,724
3,199
—
—
Fosterville mine
8,573
11,714
4,727
10,690
Kittila mine
8,353
19,049
2,193
2,193
Pinos Altos mine
1,175
3,374
518
1,112
Other
2,092
2,455
—
—
Total Development Capital
$ 178,532
$ 318,960
$ 30,601
$ 57,276
Total Capital Expenditures
$ 382,435
$ 692,910
$ 33,612
$ 64,871
* Excludes capitalized exploration
2023 Guidance Unchanged
The Company is on track to meet its 2023 gold production guidance of between 3.24 and 3.44 million ounces, which is based on the assumption that the Kittila mill operates at an annual rate of 1.6 Mtpa. Through the first half of 2023, Kittila has maintained operational flexibility to process 2.0 Mtpa in 2023. The SAC is expected to provide its final decision on Kittila's operating permit in the third quarter of 2023. If the SAC reverses the lower court ruling and reinstates the operating permit at 2.0 Mtpa, then the Company expects Kittila to produce up to 30,000 ounces of additional gold in the second half of 2023 as compared to the current guidance, however, the Company can provide no assurance that the SAC will reverse the lower court decision. If the SAC upholds the lower court decision and maintains the current operating permit of 1.6 Mtpa, the Company would be required to scale back operations during the fourth quarter of 2023 to remain within the permitted annual rate.
The Company is also on track to meet its 2023 guidance for total cash costs per ounce and AISC per ounce of between $840 and $890 and between $1,140 and $1,190, respectively. Total expected capital expenditures (excluding capitalized exploration) for 2023 remain at approximately $1.42 billion.
The closing of the Yamana Transaction on March 31, 2023 resulted in a remeasurement of the Company's previously-held 50% ownership of Canadian Malartic. This remeasurement will continue to affect the Company's depreciation and amortization for the remainder of the year as 100% of the assets are re-measured to fair value. The 2023 depreciation and amortization expense guidance is now expected to be between $1.50 to $1.55 billion for the full year 2023 (versus previous guidance of $1.36 and $1.41 billion).
Update on Key Value Drivers and Pipeline Projects
Highlights on the key value drivers (Odyssey mine, 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 shaft and new ventilation system, Kittila shaft, Meliadine Phase 2 and Amaruq underground) are set out in the applicable operational sections of this news release.
Odyssey Project
The Company released the results of a new internal study on the Odyssey project (the "2023 Odyssey Study") in June 2023, reflecting significant project advancements and the new economic environment (refer to the news release dated June 20, 2023). The forecast parameters for the 2023 Odyssey Study include inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized. Key highlights of the 2023 Odyssey Study and work completed in the second quarter of 2023 include:
The Company believes the potential for further conversion of inferred mineral resources at Odyssey is significant and is expected to add mine life and continue to increase value. Up to 16 drill rigs were active on the Canadian Malartic property during the second quarter, including: five underground drills in the Odyssey South and internal zones; four surface drills focused on expanding and infilling the East Gouldie mineralization; four drill rigs investigating new regional targets around the Odyssey mine and Canadian Malartic mines; and three drill rigs investigating near-surface targets at the Camflo property, located 4.0 kilometres northeast of the Odyssey mine infrastructure, where a first phase of 60 drill holes was completed early in the second quarter.
During the second quarter of 2023, 32,285 metres of capitalized and expensed drilling were completed. Drilling targeted several areas that are part of the Odyssey mine, including the infill of the East Gouldie deposit from surface, and of the Odyssey South and Odyssey internal zones from the exploration ramp.
Exploration drilling also continued to investigate the broader East Gouldie mineralized zone and extended the zone laterally to the east and to the west. Regional exploration drilling totaled 3,000 metres during the second quarter, with work resuming on the Rand Malartic property to test the extension of the Odyssey mine's different zones and the launch at quarter-end of the Phase 2 drilling program around the Camflo mine to further investigate its near-surface potential.
Detour Lake Mine
In the second quarter of 2023, the Detour Lake mine established a new quarterly record for mill throughput (74,725 tpd), reflecting an improved mill availability of 92.8% and a continued effort to optimize mill processes. The Company is advancing several projects to improve runtime and sustain throughput of 28.0 Mtpa. Areas of focus include modifications to the 610 re-feed chutes, improvements to secondary crusher liner profiles to extend wear life and optimization of the secondary crusher.
The Company is also assessing several projects to potentially exceed the mill throughput of 28.0 Mtpa, including ore sorting and the implementation of advanced process control utilizing artificial intelligence or expert systems. Building on positive results in 2022, the Company initiated an ore sorting pilot test with the objective to process approximately 1.5 million tonnes of low-grade material to establish the key design criteria of a full-size sorting plant. The pilot project will also help determine the economic viability of a full-size sorting operation at Detour Lake.
Ten drill rigs were active in exploration drilling at Detour Lake during the second quarter of 2023, completing 63,326 metres of drilling for a total of 128,539 metres completed during the first six months of 2023.
Drilling during the second quarter targeted specific gold mineralized horizons within and below the West Pit mineral reserve to examine gold continuity between existing drill holes, and targeted the western plunge extension of the open-pit mineralization to firm up the mineralized zones potentially amenable to underground mining, with the following highlights:
Additional selected results from the second quarter drilling at Detour Lake are provided in the plan map, composite longitudinal section and table below.
With the ongoing exploration drilling success at Detour Lake, the Company has approved a supplemental exploration budget of $5.2 million for an additional 35,000 metres of drilling at Detour Lake during the remainder of 2023. This additional drilling is expected to accelerate the identification of underground mineral resources in the western pit extension. The previous budget at Detour Lake for the full year 2023 was comprised of $33 million for 171,000 metres of expensed and capitalized drilling.
With continued positive drilling results in the higher grade zones investigated for underground mining potential, the Company has decided to integrate additional drill data from the first half of 2023 into a maiden underground mineral resource model that will be used to evaluate potential underground mining scenarios. Results of an internal evaluation of the underground mining potential are now expected to be reported in the first half of 2024.
[Detour Lake – Plan Map and Composite Longitudinal Section]
Recent selected exploration drill results from West Pit and West Pit Extension zones at Detour Lake
Drill hole
Zone
From(metres)
To(metres)
Depth of midpoint below surface (metres)
Estimated true width (metres)
Gold grade(g/t) (uncapped)
DLM23-598W
West Pit
1,169.0
1,181.0
964
11.3
3.3
DLM23-604
West Pit
268.0
287.0
250
15.1
3.8
and
West Pit
304.8
339.0
289
27.5
1.9
and
West Pit
538.0
564.0
487
21.8
2.0
and
West Pit
604.0
607.0
533
2.5
9.9
DLM23-612
West Pit
616.0
676.0
538
53.4
1.4
including
625.0
644.0
529
16.9
2.8
and
West Pit
696.1
744.7
596
43.5
1.5
DLM23-616
West Pit
599.0
625.2
439
25.3
2.9
and
West Pit
656.0
677.0
474
20.3
3.2
DLM23-620
West Pit Extension
495.0
498.0
445
2.5
81.4
and
West Pit Extension
737.0
743.8
647
6.0
3.2
DLM23-628
West Pit
26.2
43.0
29
14.2
6.8
including
26.2
29.8
24
3.0
30.6
DLM23-629
West Pit
306.0
374.0
279
60.7
7.2
including
316.0
319.0
262
2.7
137.0
and
West Pit
467.0
504.0
392
33.7
2.5
including
468.0
471.0
379
2.7
21.6
and
West Pit
620.5
635.9
498
14.2
3.4
DLM23-632
West Pit
376.7
389.3
309
11.4
2.5
and
West Pit
496.0
510.0
400
12.9
12.9
and
West Pit
521.0
583.0
436
57.4
1.0
DLM23-633
West Pit
247.0
272.0
203
22.7
4.6
and
West Pit
423.0
509.0
355
80.2
1.0
DLM23-644
West Pit
372.9
397.2
326
21.5
2.2
and
West Pit
416.0
434.0
357
16.1
2.7
and
West Pit
513.0
516.0
426
2.7
10.1
and
West Pit
545.0
576.0
460
28.5
2.5
and
West Pit
702.0
767.0
588
60.2
1.2
DLM23-646
West Pit
632.0
646.3
565
11.8
2.4
DLM23-648
West Pit
309.0
317.0
259
7.0
10.0
and
West Pit
487.0
512.2
406
22.8
2.3
and
West Pit
525.0
529.0
427
3.6
10.6
and
West Pit
637.0
653.7
516
15.3
4.1
including
641.7
647.7
515
5.5
9.8
and
West Pit
784.0
826.0
633
38.9
0.9
DLM23-652A
West Pit
227.0
251.0
205
20.4
2.4
DLM23-654A
West Pit Extension
479.0
496.0
424
14.9
2.7
and
West Pit Extension
608.0
611.0
521
2.7
7.6
and
West Pit Extension
668.3
686.0
573
16.1
2.5
DLM23-662A
West Pit
959.0
972.0
868
11.1
3.1
DLM23-665
West Pit Extension
1,225.6
1,242.0
1061
14.4
2.8
DLM23-666
West Pit Extension
339.0
357.1
291
15.8
3.0
and
West Pit Extension
385.0
411.0
331
22.8
3.7
and
West Pit Extension
428.0
436.0
359
7.1
10.6
DLM23-667CW
West Pit Extension
783.0
803.0
704
17.2
1.4
including
West Pit Extension
797.0
801.0
709
3.4
4.0
and
West Pit Extension
1,009.0
1,013.2
879
3.8
5.1
and
West Pit Extension
1,061.7
1,067.7
920
5.4
7.1
DLM23-670CW
West Pit
713.8
753.0
616
35.5
0.9
and
West Pit
858.6
892.0
722
30.9
1.2
including
868.0
871.0
718
2.8
6.6
and
West Pit
944.0
960.5
778
15.4
4.3
DLM23-678
West Pit Extension
226.0
229.0
198
2.5
15.0
and
West Pit Extension
313.1
317.0
271
3.3
6.3
and
West Pit Extension
559.0
586.1
481
23.9
2.0
and
West Pit Extension
624.0
642.0
529
16.0
2.4
DLM23-689
West Pit Extension
1,090.7
1,093.7
981
2.5
17.3
DLM23-690
West Pit Extension
882.8
889.0
754
5.8
2.9
and
West Pit Extension
934.0
965.0
799
29.2
2.4
DLM23-693
West Pit Extension
834.0
837.0
752
2.4
26.7
Optimization of Assets and Infrastructure in the Abitibi Region
During the second quarter of 2023, the Company advanced internal studies to assess potential production opportunities at the Macassa Near Surface and AK deposits, and the Upper Beaver and Wasamac projects. Among the alternatives considered, the Company is evaluating the potential to transport ore via rail or truck to the LaRonde and Canadian Malartic processing facilities, which are expected to have excess mill capacity in the future. Leveraging existing regional infrastructure has the potential to result in regional production growth at lower capital costs and with a reduced environmental footprint, which could also be beneficial to future permitting activities.
The Macassa Near Surface and AK deposits are accessible from an existing surface ramp at Macassa. Production from the Near Surface deposits commenced in the second quarter of 2023, with processing of the ore at the Macassa mill. Production from the AK deposit could potentially begin in 2024. With the commissioning of the Shaft #4 and increased productivity from the Macassa deep mine, the Macassa mill is expected to reach its full capacity of 1,650 tpd by mid-2024. The Company is evaluating the opportunity to process the near surface and AK ores at the LaRonde complex, which is approximately 130 kilometres away, and avoid capital costs associated with a mill expansion at Macassa. Average annual production from these two deposits could potentially be between 20,000 and 40,000 ounces of gold, commencing in 2024. The Company expects to report results on this evaluation in early 2024.
Drilling on the AK Zone close to surface continues to convert and expand the current mineral resources, and the results show good continuity of mineralization in this zone, which is characterized by disseminated pyrite in a sheared structure. Recent results include 11.1 g/t gold over 5.1 metres at 250 metres depth in hole KLAK-206 and 10.4 g/t gold over 2.5 metres at 240 metres depth in hole KLAK-186.
The Company is updating the studies that were previously completed at the Upper Beaver and Wasamac projects to reflect the current gold price and cost environment. Alternative processing scenarios at either the LaRonde or Canadian Malartic processing facilities are also being evaluated. Both mill complexes are close to existing road and rail infrastructure and the Company is evaluating operational feasibility, operating costs and additional infrastructure that would be required to load, transport and unload ore for processing and the tailings required for paste backfill. Both Upper Beaver and Wasamac have the potential to be low-cost mines with annual production of 150,000 to 200,000 ounces of gold with moderate capital outlays and initial production potentially commencing in 2030 and in 2029, respectively.
The Company expects to consolidate the results of these various internal evaluations early in 2024 and report results through the first half of 2024.
Hope Bay – Extensive Exploration Drilling at Doris and Madrid in Second Quarter of 2023; Step-Out Drilling Extends Madrid's High-Grade Patch 7 Zone at Depth and Laterally
Exploration drilling continued at Hope Bay during the second quarter with six drill rigs at surface testing the Doris and Madrid deposits as well as regional targets, and three drill rigs underground at Doris completing combined totals of 48,840 metres in 89 holes during the second quarter and 88,698 metres in 168 holes during the first half of the year.
The objective is to grow the mineral resources at both deposits to support future project studies and potentially resume mining at Hope Bay.
At Doris, drilling into the extensions of the main fold hinge of the BCO Zone returned 15.0 g/t gold over 6.4 metres at 422 metres depth in hole HBBCO23-153, 5.5 g/t gold over 5.1 metres at 585 metres depth in hole HBBCO23-154 from underground drilling and 17.1 g/t gold over 4.8 metres at 607 metres depth in hole HBD23-071, demonstrating the potential to continue growing the mineral resource laterally beyond the areas of historical mining.
Wide step-out drilling at Madrid at depth below the current mineral resources has encountered gold mineralization with gold grades that are greater than the known Naartok, Suluk and Patch-7 zones in an under-explored 1.5-kilometre gap in historical drilling between 400 and 700 metres depth. Within this gap, hole HBM23-086 returned 13.7 g/t gold over 4.6 metres at 697 metres depth and follow-up hole HBM23-105 returned 10.0 g/t gold over 14.0 metres at 677 metres depth. At shallower depths, hole HBM23-095 returned 3.1 g/t gold over 21.4 metres at 580 metres depth and hole HBM23-091 returned 5.3 g/t gold over 13.9 metres at 352 metres depth in the Patch 7 Zone.
This drilling has extended the high-grade Patch 7 Zone by 500 metres vertically and by 900 metres laterally at depth, and follow-up drilling will continue testing the gap between Suluk and Patch 7 at 200-metre step-outs to evaluate the potential of this zone.
Selected recent drill intercepts from the Doris and Madrid deposits are set out in the composite longitudinal sections and table below.
[Doris Deposit at Hope Bay – Composite Longitudinal Section]
[Madrid Deposit at Hope Bay – Composite Longitudinal Section]
Recent selected drill results from Doris and Madrid deposits at Hope Bay
Drill hole
Deposit / zone
From (metres)
To (metres)
Depth of midpointbelow surface (metres)
Estimated true width (metres)
Gold grade(g/t) (uncapped)
Gold grade(g/t) (capped)*
HBBCO23-153
Doris / BCO WL
205.0
213.3
422
6.4
24.0
15.0
including
210.0
213.3
422
2.6
55.1
32.4
HBBCO23-154
Doris / BCO WL
221.0
230.1
585
5.1
5.5
5.5
including
227.3
230.1
587
1.6
12.7
12.7
HBD23-071
Doris / BCO WL
731.5
737.3
607
4.8
17.1
17.1
HBM23-086
Madrid / Patch 7-Suluk Gap
832.5
840.5
697
4.6
15.1
13.7
HBM23-091
Madrid / Patch 7
394.0
410.0
352
13.9
5.3
5.3
including
395.0
406.5
351
10.0
6.6
6.6
HBM23-095
Madrid / Patch 7-Suluk Gap
723.5
757.0
580
21.4
3.1
3.1
including
730.0
744.0
577
9.0
5.3
5.3
HBM23-105
Madrid / Patch 7-Suluk Gap
815.0
839.5
677
14.0
14.5
10.0
including
830.5
838.0
682
4.3
42.3
27.6
*Results from the Doris and Madrid deposits at Hope Bay use a capping factor of 50 g/t gold.
Based on the positive results at Doris and Madrid in the first half of the year, the Company has approved a supplemental exploration budget at Hope Bay of $14.5 million for an additional 58,000 metres of drilling during the remainder of 2023. The previous exploration budget at Hope Bay for the full year 2023 was $30.6 million for 72,000 metres of drilling.
A regional exploration program is also underway, with field work commencing in May. One drill rig has been mobilized to test anomalies identified during the 2022 and 2023 field seasons with a focus on targets near the Koignuk fault, located four kilometres northwest of the Madrid deposit, and targets outside of the main Madrid mineralized trend.
In the meantime, technical studies continue to progress while larger production scenarios for Hope Bay are being evaluated.
San Nicolás Project
On April 6, 2023, the Company and Teck Resources Limited ("Teck") entered into a joint venture shareholders agreement in respect of the San Nicolás copper-zinc development project located in Zacatecas, Mexico. During the second quarter, Agnico Eagle and Teck began to implement the joint operation through Minera San Nicolás S.A.P.I. de C.V. ("MSN"). The Environmental Impact Assessment for the project is expected to be submitted to the Mexican regulator in the third quarter of 2023 and MSN is targeting completion of the feasibility study in the first half of 2024.
Impact on Operations from Ongoing Wildfires in Quebec and Caribou Migration in Nunavut
In June 2023, the Company's operations in Quebec and Ontario were affected by wildfires in the region. High levels of smoke from the wildfires caused poor air quality and low visibility, as well as two significant power outages disrupting regular activities. Throughout this period, the Company monitored in real time the air quality in its underground operations to ensure the safety of the workers. Several shifts at the Company's Quebec and Ontario operations were cancelled, affecting mostly underground activities. Ore stockpiles were processed to sustain mill operations and lessen the overall impact on production. The Company has continued to prioritize the safety and well-being of its people. Despite the downtime, the operations in Ontario and Quebec continued to perform well.
In Nunavut, the Company experienced the earliest and longest caribou migration since it began operations in the region. Caribou migration impacted operations during the quarter with higher-than planned surface and underground operations delays. Details on the production stoppage are set out below. Given the unpredictability of the seasonal migration, the Company continues to work with government and local stakeholders to assure caribou protection while continuously adapting and improving protection measures.
Environment, Social and Governance Performance Summary
Health and Safety
Environment and Permitting
Community Relations, Governance and People
Dividend Record and Payment Dates for the Third Quarter of 2023
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on September 15, 2023 to shareholders of record as of September 1, 2023. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2023 Fiscal Year
Record Date
Payment Date
March 1, 2023*
March 15, 2023*
June 1, 2023*
June 15, 2023*
September 1, 2023**
September 15, 2023**
December 1, 2023
December 15, 2023
*Paid
**Declared
Dividend Reinvestment Plan
See the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency exchange program, please contact Computershare Trust Company of Canada by phone at 1.800.564.6253 or online at www.investorcentre.com or www.computershare.com/investor.
ABITIBI REGION, QUEBEC
LaRonde Complex – Solid Production, Mill Throughput, Hoisting and Development Performance in the Second Quarter of 2023
LaRonde Complex – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
660
714
1,368
1,447
Tonnes of ore milled per day
7,253
7,824
7,558
7,994
Gold grade (g/t)
3.82
4.08
3.77
4.41
Gold production (ounces)
76,780
88,510
156,387
193,547
Production costs per tonne (C$)
$ 174
$ 92
$ 145
$ 100
Minesite costs per tonne (C$)8
$ 151
$ 124
$ 154
$ 122
Production costs per ounce of gold produced
$ 1,117
$ 577
$ 944
$ 587
Total cash costs per ounce of gold produced
$ 884
$ 649
$ 922
$ 601
___________________________
8 Minesite costs per tonne is a non-GAAP measure that does not have a standardized meaning under IFRS. For a reconciliation to production costs see "Reconciliation of Non-GAAP Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Canadian Malartic Complex – Seven Millionth Ounce Poured; Production from Odyssey Underground Ramping-up
Canadian Malartic Complex – Operating Statistics*
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
4,882
4,798
9,406
9,622
Tonnes of ore milled per day
53,648
52,725
51,967
53,160
Gold grade (g/t)
1.22
1.23
1.21
1.19
Gold production* (ounces)
177,755
87,186
258,440
167,695
Production costs per tonne (C$)
$ 40
$ 30
$ 38
$ 30
Minesite costs per tonne (C$)
$ 39
$ 35
$ 39
$ 35
Production costs per ounce of gold produced
$ 811
$ 647
$ 780
$ 676
Total cash costs per ounce of gold produced
$ 772
$ 753
$ 779
$ 772
* 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
Production Costs
Minesite and Total Cash Costs
Highlights
Goldex – Record Quarterly Gold Production and Mill Throughput Since Re-start; Best Development Quarter in Zone Deep 2
Goldex Mine – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
761
738
1,459
1,482
Tonnes of ore milled per day
8,363
8,121
8,061
8,188
Gold grade (g/t)
1.74
1.74
1.74
1.69
Gold production (ounces)
37,716
36,877
71,739
71,322
Production costs per tonne (C$)
$ 50
$ 46
$ 52
$ 45
Minesite costs per tonne (C$)
$ 51
$ 46
$ 51
$ 46
Production costs per ounce of gold produced
$ 747
$ 719
$ 781
$ 740
Total cash costs per ounce of gold produced
$ 776
$ 718
$ 792
$ 746
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Exploration Highlights
ABITIBI REGION, ONTARIO
Detour Lake – Record Quarterly Mill Performance; Continued Focus on Mill Optimization to Achieve 28.0 Mtpa by 2025
Detour Lake Mine – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022*
Tonnes of ore milled (thousands of tonnes)
6,800
6,519
13,197
9,789
Tonnes of ore milled per day
74,725
71,638
72,912
68,455
Gold grade (g/t)
0.85
1.01
0.85
1.02
Gold production (ounces)
169,352
195,515
331,209
295,958
Production costs per tonne (C$)
$ 22
$ 27
$ 23
$ 33
Minesite costs per tonne (C$)
$ 26
$ 24
$ 26
$ 24
Production costs per ounce of gold produced
$ 666
$ 703
$ 685
$ 870
Total cash costs per ounce of gold produced
$ 731
$ 640
$ 750
$ 626
*For the Six Months Ended June 30, 2022, the operating statistics are reported for the period from February 8, 2022 to June 30, 2022.
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Macassa – Record Quarterly Mill Throughput, Skipped Tonnes and Underground Development Underscore a Solid Production Result
Macassa Mine – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022*
Tonnes of ore milled (thousands of tonnes)
112
88
199
135
Tonnes of ore milled per day
1,231
970
1,099
945
Gold grade (g/t)
16.16
22.02
19.29
20.15
Gold production (ounces)
57,044
61,262
121,159
85,750
Production costs per tonne (C$)
$ 464
$ 479
$ 519
$ 615
Minesite costs per tonne (C$)
$ 503
$ 519
$ 539
$ 520
Production costs per ounce of gold produced
$ 676
$ 539
$ 631
$ 762
Total cash costs per ounce of gold produced
$ 747
$ 582
$ 672
$ 641
*For the Six Months Ended June 30, 2022, the operating statistics are reported for the period from February 8, 2022 to June 30, 2022.
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Exploration Highlights
Exploration drilling at Macassa during the second quarter of 2023 targeted the Main Break, the eastern extension of the South Mine Complex ("SMC") and the western and deeper extension of the AK deposit.
Selected recent drill results from Macassa and AK are set out in the composite longitudinal section and the table below.
[Macassa Mine and AK Zone – Composite Longitudinal Section]
Recent selected exploration drill results from Macassa and AK deposit
Drill hole
Deposit / Zone
From (metres)
To (metres)
Depth of midpointbelow surface (metres)
Estimated true width (metres)
Gold grade(g/t) (uncapped)
Gold grade (g/t) (capped)*
53-4732
Macassa - SMC East
142.2
145.9
1,615
3.7
14.7
14.7
and
Macassa - Main Break
627.8
629.8
1,743
1.4
25.9
10.7
and
Macassa - Main Break
645.6
648.2
1,760
1.8
4.7
4.7
53-4733
Macassa - SMC East
127.6
129.6
1,601
2.0
25.6
25.6
57-1386
Macassa - SMC West
113.6
116.3
1,734
1.3
23.6
23.6
and
Macassa - SMC West
124.3
128.0
1,730
1.6
13.9
13.9
57-1387
Macassa - SMC West
85.0
87.2
1,721
1.3
9.9
9.9
and
Macassa - SMC West
94.5
96.5
1,723
1.1
29.3
29.3
and
Macassa - SMC West
105.9
107.9
1,718
1.1
11.6
11.6
58-833
Macassa - Main Break
168.2
170.4
1,875
2.0
25.4
15.5
58-839
Macassa - Main Break
162.3
165.1
1,870
2.7
17.9
10.8
KLAK-206
AK - Ramp
137.9
147.4
250
5.1
11.1
11.1
KLAK-186
AK - Ramp
121.5
125.2
240
2.5
10.4
10.4
and
AK - Ramp
126.9
128.9
244
1.3
8.5
8.5
*Results from Macassa mine use a capping factor ranging from 68.6 g/t to 445.7 g/t gold depending on the zone. Results from AK use a capping factor of 70 g/t gold.
NUNAVUT
Meliadine Mine – Record Monthly Mill Throughput in May; Record Quarterly Health and Safety Performance
Meliadine Mine – Operating Statistics
Three Months Ended
Six Months Ended
June 30, 2023
June 30, 2022
June 30, 2023
June 30, 2022
Tonnes of ore milled (thousands of tonnes)
461
449
937
881
Tonnes of ore milled per day
5,066
4,934
5,177
4,867
Gold grade (g/t)
6.14
6.97
6.13
6.51
Gold production (ounces)
87,682
97,572
178,149
178,276
Production costs per tonne (C$)
$ 230
$ 244
$ 229
$ 237
Minesite costs per tonne (C$)
$ 261
$ 234
$ 250
$ 237
Production costs per ounce of gold produced
$ 899
$ 885
$ 898
$ 926
Total cash costs per ounce of gold produced
$ 1,019
$ 837
$ 978
$ 912
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Exploration Highlights
Exploration drilling during the second quarter at Meliadine was carried out from both surface and the new exploration ramp that provides a platform at approximately 460 metres depth and extends deeper towards the west. Highlight results from the first half of 2023 include:
In light of the favourable exploration drilling results at Meliadine, the Company has approved a supplemental budget of $7.0 million for the remainder of 2023 for an additional 25,000 metres of drilling and the extension of the exploration ramp towards the east at Tiriganiaq.
Selected recent exploration drill intercepts from the Tiriganiaq, Wesmeg, Wesmeg North and F-Zone deposits at the Meliadine property are set out in the plan map, composite longitudinal section and table below.
[Meliadine Mine – Plan Map & Composite Longitudinal Section]
Recent selected exploration drill results from Tiriganiaq, Wesmeg, Wesmeg North and F-Zone deposits at Meliadine
Drill hole
Deposit / Lode
From(metres)
To(metres)
Depth of midpoint below surface (metres)
Estimated true width (metres)
Gold grade(g/t) (uncapped)
Gold grade(g/t) (capped)
M22-3246
Tiriganiaq / 1000
260.5
265.0
204
4.1
9.6
9.6
ML425-9740-D28
Tiriganiaq / 1015
336.9
341.1
742
3.7
8.0
8.0
ML400-10030-D8
Wesmeg N / 950
182.6
191.8
558
7.4
25.0
6.3
including
183.5
186.2
556
2.2
79.6
15.8
ML450-9290-D9
Wesmeg N / 922
67.1
76.3
484
8.2
6.4
6.4
including
70.8
76.3
484
4.9
9.2
9.2
ML450-9290-D15
Wesmeg N / 922
97.1
103.8
530
4.3
7.6
7.6
ML400-10200-D2
Wesmeg / 650
260.4
267.4
453
6.8
6.4
6.4
including
260.4
263.1
453
2.6
12.3
12.3
ML400-10200-D8
Wesmeg / 650
278.4
282.0
531
3.6
18.2
18.2
M22-3477
F-Zone / 4130
432.4
435.6
383
3.1
6.4
6.4
M22-3473
F-Zone / 4135
459.4
464.4
426
4.6
9.3
9.3
M23-3583A
F-Zone / 4120
169.8
187.2
167
16.0
7.2
6.4
*Results from the Meliadine mine use capping factors of 250 g/t gold for Tiriganiaq Lode 1000, 40 g/t gold for iron formations at Wesmeg, 20 to 90 g/t gold at Wesmeg North, and 25 g/t gold at F-Zone.
Meadowbank Complex – Solid Operational Performance; Modifications Complete to Cemented Rockfill Plant
Meadowbank Complex – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
845
930
1,828
1,785
Tonnes of ore milled per day
9,286
10,220
10,099
9,862
Gold grade (g/t)
3.79
3.49
3.85
2.94
Gold production (ounces)
94,775
96,698
205,885
156,463
Production costs per tonne (C$)
$ 186
$ 147
$ 181
$ 145
Minesite costs per tonne (C$)
$ 178
$ 135
$ 176
$ 149
Production costs per ounce of gold produced
$ 1,240
$ 1,110
$ 1,202
$ 1,304
Total cash costs per ounce of gold produced
$ 1,156
$ 993
$ 1,144
$ 1,305
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
AUSTRALIA
Fosterville – Noise Prohibition Lifted; Fosterville Returns to Normal Operations in June
Fosterville Mine – Operating Statistics*
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
176
122
324
213
Tonnes of ore milled per day
1,934
1,331
1,790
1,486
Gold grade (g/t)
14.77
22.24
16.49
24.76
Gold production (ounces)
81,813
86,065
168,371
167,892
Production costs per tonne (A$)
$ 308
$ 597
$ 335
$ 890
Minesite costs per tonne (A$)
$ 304
$ 370
$ 321
$ 369
Production costs per ounce of gold produced
$ 438
$ 561
$ 430
$ 812
Total cash costs per ounce of gold produced
$ 436
$ 351
$ 416
$ 331
*For the Six Months Ended June 30, 2022, the operating statistics are reported for the period from February 8, 2022 to June 30, 2022.
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Exploration Highlights
Exploration drilling at Fosterville during the second quarter of 2023 totaled 20,565 metres and mainly targeted the Lower Phoenix deep extension from the 3912 drill drive and the Robbins Hill area. Exploration results will be reported later in the year.
FINLAND
Kittila – Strong Operational Performance from Underground Mine; Major Projects Nearing Completion
Kittila Mine – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
417
556
913
1,017
Tonnes of ore milled per day
4,582
6,110
5,044
5,619
Gold grade (g/t)
4.42
4.35
4.59
4.01
Gold production (ounces)
50,130
64,814
113,822
110,322
Production costs per tonne (EUR)
€ 101
€ 89
€ 100
€ 92
Minesite costs per tonne (EUR)
€ 104
€ 88
€ 101
€ 89
Production costs per ounce of gold produced
$ 864
$ 823
$ 849
$ 932
Total cash costs per ounce of gold produced
$ 899
$ 828
$ 847
$ 915
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Exploration Highlights
Exploration drilling at Kittila during the second quarter of 2023 totaled 21,206 metres and mainly targeted the Main and Sisar zones in the northern and southern portions of the deposit at approximately 1.0 to 1.4 kilometres depth.
Selected recent drill results from Kittila are set out in the composite longitudinal section and the table below.
[Kittila Mine – Composite Longitudinal Section]
Recent selected exploration drill results from Main and Sisar zones at Kittila
Drill hole
Zone / Area
From(metres)
To(metres)
Depth of midpoint below surface (metres)
Estimated true width (metres)
Gold grade(g/t) (uncapped)*
RIE23-603
Main Rimpi
159.0
166.0
1,094
5.4
5.7
RIE23-607
Main Rimpi
156.2
163.8
1,098
4.9
6.0
and
Main Rimpi
176.0
182.8
1,102
4.5
7.2
ROD23-700
Main Roura
160.0
175.4
1,152
7.3
7.7
ROU23-602
Main Roura
189.5
200.0
1,174
4.8
6.0
Main Roura
212.0
223.0
1,194
5.5
8.5
STEC22-005
Sisar Top
150.0
156.0
142
4.5
3.1
* Results from the Kittila mine are uncapped.
MEXICO
Pinos Altos – Production and Development Higher Than Planned
Pinos Altos Mine – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
401
366
765
750
Tonnes of ore milled per day
4,407
4,022
4,227
4,144
Gold grade (g/t)
1.80
2.02
1.97
2.08
Gold production (ounces)
22,159
23,020
46,293
48,190
Production costs per tonne
$ 87
$ 109
$ 88
$ 97
Minesite costs per tonne
$ 90
$ 101
$ 91
$ 94
Production costs per ounce of gold produced
$ 1,566
$ 1,732
$ 1,461
$ 1,503
Total cash costs per ounce of gold produced
$ 1,282
$ 1,383
$ 1,196
$ 1,224
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
La India – Production in Line With Targets in the Second Quarter of 2023; Work Continues to Reduce Cyanide Consumption and Improve Leach Kinetics
La India Mine – Operating Statistics
Three Months Ended
Six Months Ended
Jun 30, 2023
Jun 30, 2022
Jun 30, 2023
Jun 30, 2022
Tonnes of ore milled (thousands of tonnes)
880
1,356
1,540
2,919
Tonnes of ore milled per day
9,670
14,901
8,508
16,127
Gold grade (g/t)
0.74
0.52
0.72
0.55
Gold production (ounces)
17,833
20,016
34,154
41,718
Production costs per tonne
$ 27
$ 13
$ 28
$ 12
Minesite costs per tonne
$ 28
$ 14
$ 30
$ 13
Production costs per ounce of gold produced
$ 1,326
$ 872
$ 1,281
$ 844
Total cash costs per ounce of gold produced
$ 1,385
$ 936
$ 1,348
$ 876
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The Company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
Further Information
For further information regarding Agnico Eagle, contact Investor Relations at This email address is being protected from spambots. You need JavaScript enabled to view it.document.getElementById('cloak1d287096fee45f67ba002659f55ca30c').innerHTML = ''; var prefix = 'ma' + 'il' + 'to'; var path = 'hr' + 'ef' + '='; var addy1d287096fee45f67ba002659f55ca30c = 'investor.relations' + '@'; addy1d287096fee45f67ba002659f55ca30c = addy1d287096fee45f67ba002659f55ca30c + 'agnicoeagle' + '.' + 'com'; var addy_text1d287096fee45f67ba002659f55ca30c = 'investor.relations' + '@' + 'agnicoeagle' + '.' + 'com';document.getElementById('cloak1d287096fee45f67ba002659f55ca30c').innerHTML += ''+addy_text1d287096fee45f67ba002659f55ca30c+''; or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite costs per tonne", "net debt", "adjusted net income", "adjusted net income per share", "sustaining capital expenditures", "development capital expenditures" and "operating margin" that are not standardized measures under IFRS. These measures may not be comparable to similar measures reported by other gold mining companies. For a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS, other than adjusted net income, see "Reconciliation of Non-GAAP Financial Performance Measures" below.
The total cash costs per ounce of gold produced also referred to as "total cash cost per ounce" is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, inventory production costs, the impact of purchase price allocation in connection with mergers and acquisitions to inventory accounting, realized gains and losses on hedges of production costs, operational care and maintenance costs due to COVID-19 and other adjustments, which include the costs associated with a 5% in-kind royalty paid in respect of certain portions of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, as well as smelting, refining and marketing charges and then dividing by the number of ounces of gold produced. Certain line items such as operational care and maintenance costs due to COVID-19 and realized gains and losses on hedges of production costs were previously classified as "other adjustments" and are now disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impacts of such events on the cash operating costs per ounce and minesite costs per tonne. In addition, given the extraordinary nature of the fair value adjustment on inventory related to mergers and acquisitions and the use of the total cash costs per ounce measure to reflect the cash generating capabilities of the Company's operations, the calculation of total cash costs per ounce for the Detour, Macassa and Fosterville mines have been adjusted for this purchase price allocation in the comparative period data and for the Canadian Malartic complex in the three and six months ended June 30, 2023. The total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis, except that no adjustment is made for by-product metal revenues. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Company's mining operations. Management also uses these measures to, and believes they are helpful to investors so investors can, understand and monitor the performance of the Company's mining operations. The Company believes that total cash costs per ounce is useful to help investors understand the costs associated with producing gold and the economics of gold mining. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management and investors to assess a mine's cash-generating capabilities at various gold prices. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider, these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analysis in order to quantify the effects of fluctuating metal prices and exchange rates. Investors should note that total cash costs per ounce are not reflective of all cash expenditures as they do not include income tax payments, interest costs or dividend payments. These measures also do not include depreciation or amortization.
Agnico Eagle's primary business is gold production and the focus of its current operations and future development is on maximizing returns from gold production, with other metal production being incidental to the gold production process. Accordingly, all metals other than gold are considered by-products.
In this press release, unless otherwise indicated, total cash costs per ounce of gold produced is reported on a by-product basis. Total cash costs per ounce of gold produced is reported on a by-product basis because (i) the majority of the Company's revenues are from gold, (ii) the Company mines ore, which contains gold, silver, zinc, copper and other metals, (iii) it is not possible to specifically assign all costs to revenues from the gold, silver, zinc, copper and other metals the Company produces, (iv) it is a method used by management and the Board of Directors to monitor operations, and (v) many other gold producers disclose similar measures on a by-product rather than a co-product basis. Investors should also consider these measures in conjunction with other data prepared in accordance with IFRS.
In this press release, unless otherwise indicated, all-in sustaining costs per ounce of gold produced is reported on a by-product basis. All-in sustaining costs per ounce of gold produced (also referred to as "all-in sustaining costs per ounce") on a by-product basis is calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options), lease payments related to sustaining assets and reclamation expenses, and then dividing by the number of ounces of gold produced. These additional costs reflect the additional expenditures that are required to be made to maintain current production levels. The AISC per ounce of gold produced on a co-product basis is calculated in the same manner as the AISC per ounce of gold produced on a by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment is made for by-product metal revenues. AISC per ounce seeks to reflect total sustaining expenditures of producing and selling an ounce of gold while maintaining current operations. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of total cash costs per ounce and AISC of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Investors should note that AISC per ounce is not reflective of all cash expenditures as it does not include income tax payments, interest costs or dividend payments. This measure also does not include depreciation or amortization.
The World Gold Council ("WGC") is a non-regulatory market development organization for the gold industry. Although the WGC is not a mining industry regulatory organization, it has worked closely with its member companies to develop relevant non-GAAP measures. The Company follows the guidance on all-in sustaining costs released by the WGC in November 2018. Adoption of the AISC metric is voluntary and, notwithstanding the Company's adoption of the WGC's guidance, AISC per ounce of gold produced reported by the Company may not be comparable to data reported by other gold mining companies. The Company believes that this measure provides helpful information about operating performance. However, this non-GAAP measure should be considered together with other data prepared in accordance with IFRS as it is not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for inventory production costs, operational care and maintenance costs due to COVID-19, and other adjustments, and then dividing by tonnage of ore processed. As the total cash costs per ounce of gold produced can be affected by fluctuations in by‑product metal prices and foreign exchange rates, management believes, and investors should note, that minesite costs per tonne is useful to investors in providing additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware, and investors should note, that this per tonne measure of performance can be affected by fluctuations in processing levels. This inherent limitation may be partially mitigated by using this measure in conjunction with production costs prepared in accordance with IFRS.
Net debt is calculated by adjusting the total of the current portion of long-term debt and non-current long-term debt as recorded on the consolidated balance sheet for deferred financing costs and cash and cash equivalents. Management believes the measure of net debt is useful to help investors to determine the Company's overall debt position and to evaluate future debt capacity of the Company.
Adjusted net income and adjusted net income per share are calculated by adjusting the net income as recorded in the consolidated statements of income (loss) for the effects of certain non-recurring, unusual and other items that the Company believes are not reflective of the Company's underlying performance for the reporting period. Adjusted net income is calculated by adjusting net income for foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, revaluation gain, impairment loss charges and reversals, environmental remediation, severance and transaction costs related to acquisitions, purchase price allocations to inventory, income and mining taxes adjustments as well as other items (which includes changes in estimates of asset retirement obligations at closed sites and gains and losses on the disposal of assets, self-insurance losses, multi-year donations and integration costs). Adjusted net income per share is calculated by dividing adjusted net income by the number of shares outstanding on a basic and diluted basis. The Company believes that these generally accepted industry measures are useful in that they allow for the evaluation of the results of continuing operations and in making comparisons between periods. Adjusted net income and adjusted net income per share are intended to provide investors with information about the Company's continuing income generating capabilities from its core mining business, excluding the above adjustments, which are not reflective of operational performance. Management uses this measure to, and believes it is helpful to investors so they can, understand and monitor for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
Operating margin is calculated by deducting production costs from revenue from mining operations. In order to reconcile operating margin to net income as recorded in the consolidated financial statements, the Company adds the following items to the operating margin: income and mining taxes expense; other expenses (income); care and maintenance expenses; foreign currency translation (gain) loss; environmental remediation costs; gain (loss) on derivative financial instruments; finance costs; general and administrative expenses; amortization of property, plant and mine development; exploration and corporate development expenses; revaluation gain and impairment losses (reversals). The Company believes that operating margin is a useful measure that represents the operating performance of its individual mines associated with the ongoing production and sale of gold and by-product metals without allocating Company-wide overhead, including exploration and corporate development expenses, amortization of property, plant and mine development, general and administrative expenses, finance costs, gain and losses on derivative financial instruments, environmental remediation costs, foreign currency translation gains and losses, other expenses and income and mining tax expenses. Management uses this measure internally to plan and forecast future operating results. This measure is intended to provide investors with additional information about the Company's underlying operating results and should be evaluated in conjunction with other data prepared in accordance with IFRS.
Capital expenditures are classified into sustaining capital expenditures and development capital expenditures. Sustaining capital expenditures are expenditures incurred during the production phase to sustain and maintain the existing assets so they can achieve constant expected levels of production from which the Company will derive economic benefits. Sustaining capital expenditures include expenditure for assets to retain their existing productive capacity as well as to enhance performance and reliability of the operations. Development capital expenditures represents the spending at new projects and/or expenditure at existing operations that is undertaken with the intention to increase production levels or mine life above the current plans. Management uses these measures in the capital allocation process and to assess the effectiveness of its investments. Management believes these measures are useful so investors can assess the purpose and effectiveness of the capital expenditures split between sustaining and development in each reporting period. The classification between sustaining and development capital expenditures does not have a standardized definition in accordance with IFRS and other companies may classify expenditures in a different manner.
This news release also contains information as to estimated future total cash costs per ounce, AISC per ounce and minesite costs per tonne. The estimates are based upon the total cash costs per ounce, AISC per ounce and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at July 26, 2023. Certain statements contained in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws and are referred to herein as "forward-looking statements". All statements, other than statements of historical fact, that address circumstances, events, activities or developments that could, or may or will occur are forward looking statements. When used in this news release, the words "achieve", "aim", "anticipate", "could", "estimate", "expect", "forecast", "future", "plan", "possible", "potential", "schedule", "target", "tracking", "will", and similar expressions are intended to identify forward-looking statements. Such statements include, without limitation: the Company's forward-looking guidance, including metal production, estimated ore grades, statements regarding or relating to recovery rates, project timelines, drilling targets or results, life of mine estimates, total cash costs per ounce, AISC per ounce, minesite costs per tonne, other expenses and cash flows; the potential for additional gold production at Kittila, the AK deposit and Upper Beaver; the estimated timing and conclusions of technical studies and evaluations; the methods by which ore will be extracted or processed; the Company's expansion plans at Detour, Kittila, Meliadine Phase 2, the Amaruq underground project and the Odyssey project, including the timing, funding, completion and commissioning thereof and production therefrom; the Company's plans at the Hope Bay project; statements about the Company's plans at the Wasamac project; statements concerning other expansion projects, recovery rates, mill throughput, optimization and projected exploration, including costs and other estimates upon which such projections are based; timing and amounts of capital expenditures, other expenditures and other cash needs, and expectations as to the funding thereof; estimates of future mineral reserves, mineral resources, mineral production and sales; the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; anticipated cost inflation and its effect on the Company's costs and results; estimates of mineral reserves and mineral resources and the effect of drill results on future mineral reserves and mineral resources; the Company's ability to obtain the necessary permits and authorizations in connection with its proposed or current exploration, development and mining operations and the anticipated timing thereof; operations at and expansion of the Kitilla mine following the decision of the Finish courts and administrative bodies; future exploration; the anticipated timing of events with respect to the Company's mine sites; the sufficiency of the Company's cash resources; the Company's plans with respect to hedging and the effectiveness of its hedging strategies; future activity with respect to the Company's unsecured revolving bank credit facility and the Term Loan Facility; the NCIB; future dividend amounts and payment dates; and anticipated trends with respect to the Company's operations, exploration and the funding thereof. Such statements reflect the Company's views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management's discussion and analysis ("MD&A") and the Company's Annual Information Form ("AIF") for the year ended December 31, 2022 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2022 ("Form 40-F") filed with the U.S. Securities and Exchange Commission (the "SEC") as well as: that there are no significant disruptions affecting operations; that production, permitting, development, expansion and the ramp-up of operations at each of Agnico Eagle's properties proceeds on a basis consistent with current expectations and plans; that the environmental and water permits granted for the Kittila mine are restored by the SAC in its final decision and the decisions of the Finish courts and administrative bodies have no material impact on the Kittila mine's operations; that the relevant metal prices, foreign exchange rates and prices for key mining and construction inputs (including labour and electricity) will be consistent with Agnico Eagle's expectations; the ability to realize the anticipated benefits of the Merger or implementing the business plan for the combined company, including as a result of difficulty in integrating the businesses of the companies involved; the ability to realize synergies from the Merger and Yamana Transaction and cost savings at the times, and to the extent, anticipated; that Agnico Eagle's current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that seismic activity at the Company's operations at LaRonde, Goldex and other properties is as expected by the Company and that the Company's efforts to mitigate its effect on mining operations are successful; that the Company's current plans to optimize production are successful; that there are no material variations in the current tax and regulatory environment; that governments, the Company or others do not take additional measures in response to the COVID-19 pandemic or otherwise that, individually or in the aggregate, materially affect the Company's ability to operate its business; that cautionary measures taken in connection with the COVID-19 pandemic do not affect productivity; and that measures taken relating to, or other effects of, the COVID-19 pandemic do not affect the Company's ability to obtain necessary supplies and deliver them to its mine sites. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; foreign exchange rate fluctuations; inflationary pressures; financing of additional capital requirements; cost of exploration and development programs; seismic activity at the Company's operations, including the LaRonde complex and Goldex mine; mining risks; community protests, including by First Nations groups; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company's stock price; risks associated with the Company's currency, fuel and by-product metal derivative strategies; the ability to realize the anticipated benefits of the Merger or implementing the business plan for Agnico Eagle following the Merger, including as a result of a delay or difficulty in integrating the businesses of the companies involved; the ability to realize the anticipated benefits of the Yamana Transaction; the ability to realize the anticipated benefits of the San Nicolás transaction; the extent and manner to which COVID-19, and measures taken by governments, the Company or others to attempt to reduce the spread of COVID-19 may affect the Company, whether directly or through effects on employee health, workforce productivity and availability (including the ability to transport personnel to fly-in/fly-out camps), travel restrictions, contractor availability, supply availability, ability to sell or deliver gold dore bars or concentrate, availability of insurance and the cost thereof, the ability to procure inputs required for the Company's operations and projects or other aspects of the Company's business; and uncertainties with respect to the effect on the global economy associated with the COVID-19 pandemic and measures taken to reduce the spread of COVID-19, any of which could negatively affect financial markets, including the trading price of the Company's shares and the price of gold, and could adversely affect the Company's ability to raise capital. For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the AIF and MD&A filed on SEDAR at www.sedarplus.ca and included in the Form 40-F filed on EDGAR at www.sec.gov, as well as the Company's other filings with the Canadian securities regulators and the SEC. Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral Resources
The mineral reserve and mineral resource estimates contained in this news release have been prepared in accordance with the Canadian securities administrators' (the "CSA") National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101").
Effective February 25, 2019, the SEC's disclosure requirements and policies for mining properties were amended to more closely align with current industry and global regulatory practices and standards, including NI 43-101. However, Canadian issuers that report in the United States using the Multijurisdictional Disclosure System ("MJDS"), such as the Company, may still use NI 43-101 rather than the SEC disclosure requirements when using the SEC's MJDS registration statement and annual report forms. Accordingly, mineral reserve and mineral resource information contained in this news release may not be comparable to similar information disclosed by U.S. companies.
Investors are cautioned that while the SEC now recognizes "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", investors should not assume that any part or all of the mineral deposits in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances. Investors are cautioned not to assume that any "measured mineral resources", "indicated mineral resources", or "inferred mineral resources" that the Company reports in this news release are or will be economically or legally mineable.
Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category.
The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained ounces and mineral reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news release relating to Nunavut, Quebec and Finland operations has been approved by Dominique Girard, Eng., Executive Vice President & Chief Operating Officer – Nunavut, Quebec & Europe; relating to Ontario, Australia and Mexico operations has been approved by Natasha Vaz, Executive Vice President & Chief Operating Officer – Ontario, Australia & Mexico; relating to exploration has been approved by Guy Gosselin, Eng. and P.Geo., Executive Vice President, Exploration; and relating to mineral reserves and mineral resources has been approved by Dyane Duquette, P.Geo., Vice President, Mineral Resources Management, each of whom is a "Qualified Person" for the purposes of NI 43-101.
Assumptions used for the December 31, 2022 mineral reserve and mineral resource estimates reported by the Company
Metal Price for Mineral Reserve Estimation1
Gold (US$/oz)
Silver (US$/oz)
Copper (US$/lb)
Zinc (US$/lb)
$1,300
$18
$3.00
$1.00
1 Exceptions: US$1,350 per ounce of gold used for Hope Bay and Hammond Reef; US$1,250 per ounce of gold used for Akasaba West; US$1,200 per ounce of gold and US$2.75 per pound of copper used for Upper Beaver
Mines / Projects
Metal Price for Mineral Resource Estimation5
Gold
(US$/oz)
Silver
(US$/oz)
Copper
(US$/lb)
Zinc
(US$/lb)
Operating mines held by Kirkland Lake Gold before the Merger1
$1,500
-
-
-
Operating mines held by Agnico Eagle Mines before the Merger2
$1,625
$22.50
$3.75
$1.25
Pipeline projects
$1,6883
$25.004
$3.75
$1.25
1 Detour, Macassa, Fosterville, Northern Territory
2 LaRonde, LZ5, Goldex, Amaruq, Meliadine, Kittila, La India, Pinos Altos
3 Hope Bay, Anoki-McBean, Hammond Reef, Chipriona, Tarachi, Santa Gertrudis
4 Chipriona, Santa Gertrudis
5 Exceptions: US$1,667 per ounce of gold used for Canadian Malartic, Odyssey, Akasaba West, Upper Canada, El Barqueno Gold; US$1,533 per ounce of gold used for Barsele; US$500 per ounce of gold used for Aquarius. US$22.67 per ounce of silver El Barqueno Silver
Exchange rates1
C$ per US$1.00
Mexican peso per US$1.00
AUD per US$1.00
US$ per €1.00
$1.30
MXP18.00
AUD1.36
EUR1.10
1 Exceptions: exchange rate of CAD$1.25 per US$1.00 used for Upper Beaver, Upper Canada and Holt complex, Detour Zone 58N; CAD$1.11 per US$1.00 used for Aquarius; US$1.00 per EUR $1.15 used for Barsele
The above metal price assumptions are below the three-year historic gold and silver price averages (from January 1, 2020 to December 31, 2022) of approximately $1,790 per ounce and $22.48 per ounce, respectively.
Mineral reserves are reported exclusive of mineral resources. Tonnage amounts and contained metal amounts set out in this table have been rounded to the nearest thousand, so may not aggregate to equal column totals. Mineral reserves are in-situ, taking into account all mining recoveries, before mill or heap leach recoveries. Underground mineral reserves and measured and indicated mineral resources are reported within mineable shapes and include internal and external dilution. Inferred mineral resources are reported within mineable shapes and include internal dilution. Mineable shape optimization parameters may differ for mineral reserves and mineral reserves.
The mineral reserves and mineral resources tonnages reported for silver, copper and zinc are a subset of the mineral reserves and mineral resources tonnages for gold. The Company's economic parameters follow the method accepted by the SEC by setting the maximum price allowed to be no more than the lesser of the three‐year moving average and current spot price, which is a common industry standard. Given the current commodity price environment, Agnico Eagle continues to use more conservative gold and silver prices.
NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The mineral reserves presented in this news release are separate from and not a portion of the mineral resources.
Modifying factors are considerations used to convert mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors, together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the Company's material mineral projects as at June 30, 2023, including information regarding data verification, key assumptions, parameters and methods used to estimate mineral reserves and mineral resources and the risks that could materially affect the development of the mineral reserves and mineral resources required by sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d) of NI 43-101 can be found in the Company's AIF and MD&A filed on SEDAR each of which forms a part of the Company's Form 40-F filed with the SEC on EDGAR and in the following technical reports filed on SEDAR in respect of the Company's material mineral properties: NI 43-101 Technical Report of the LaRonde complex in Québec, Canada (March 24, 2023); NI 43-101 Technical Report Canadian Malartic Mine, Québec, Canada (March 25, 2021); Technical Report on the Mineral Resources and Mineral Reserves at Meadowbank Gold complex including the Amaruq Satellite Mine Development, Nunavut, Canada as at December 31, 2017 (February 14, 2018); the Updated Technical Report on the Meliadine Gold Project, Nunavut, Canada (February 11, 2015); the Detour Lake Operation, Ontario, Canada NI 43-101 Technical Report as at July 26, 2021 (October 15, 2021); and the Updated NI 43-101 Technical Report Fosterville Gold Mine in the State of Victoria, Australia as at December 31, 2018 (April 1, 2019).
APPENDIX
Recent selected exploration drill results from South Zone and W Zone at Goldex
Drill hole
Location
From (metres)
To (metres)
Depth of midpoint below surface (metres)
Estimated true width (metres)
Gold grade(g/t) (uncapped)
Gold grade(g/t) (capped)*
GD135-052
South Zone - Sector 3
174.0
189.0
1,284
7.0
5.4
5.4
GD135-065
South Zone - Sector 3
155.0
172.0
1,376
8.0
19.4
12.9
GD138-009
South Zone - Sector 3
221.0
235.0
1,427
6.0
5.4
5.4
GD27-056
W Zone
529.5
574.5
496
25.0
1.2
1.2
and
W Zone
702.0
718.5
575
9.0
7.3
7.3
GD27-057
W Zone
288.0
301.5
320
6.0
3.7
3.7
*Results from South Zone and W Zone at Goldex use capping factors of 60 g/t gold and 50 g/t gold, respectively.
EXPLORATION DRILL COLLAR COORDINATES
Drill hole
UTM East*
UTM North*
Elevation (metres above sea level)
Azimuth (degrees)
Dip(degrees)
Length(metres)
Goldex
GD135-052
285873
5331634
-1,056
69
19
213
GD135-065
285872
5331633
-1,056
58
-12
231
GD138-009
285849
5331512
-1,066
38
-19
348
GD27-056
286120
5330643
74
307
-30
879
GD27-057
286120
5330643
74
311
-20
633
Detour Lake
DLM23-598W
586875
5542118
303
173
-66
1,302
DLM23-604
589309
5541462
283
181
-66
675
DLM23-612
589227
5541591
283
180
-59
750
DLM23-616
589267
5541626
283
180
-52
695
DLM23-620
586560
5541975
293
184
-68
1,152
DLM23-628
589227
5541550
283
179
-58
675
DLM23-629
588609
5541481
285
178
-58
687
DLM23-632
588128
5541642
287
177
-56
801
DLM23-633
588327
5541610
287
178
-54
675
DLM23-644
587843
5541810
286
175
-61
792
DLM23-646
587551
5542302
291
181
-64
1,335
DLM23-648
587965
5541885
286
175
-61
1,002
DLM23-652A
587483
5541875
286
173
-59
255
DLM23-654A
587351
5542074
289
175
-66
951
DLM23-662A
587203
5541839
301
177
-73
1,058
DLM23-665
585309
5542525
295
190
-61
1,458
DLM23-666
586885
5541753
297
175
-59
801
DLM23-667CW
586954
5542188
297
186
-69
1,500
DLM23-670CW
587281
5541950
298
171
-64
1,076
DLM23-678
587003
5541858
307
176
-63
702
DLM23-689
585993
5542344
299
190
-69
1,260
DLM23-690
586477
5542144
296
185
-68
1,137
DLM23-693
586159
5542015
291
183
-68
972
Macassa
53-4732
567236
5332944
-1258
303
-59
716
53-4733
567235
5332944
-1256
314
-42
594
57-1386
568426
5331284
-1405
183
4
235
57-1387
568427
5331284
-1405
191
14
317
58-833
567802
5332584
-1510
349
-29
274
58-839
567803
5332584
-1510
336
-22
259
KLAK-186
567487
5331787
108
199
-29
155
KLAK-206
567486
5331787
108
192
-36
171
Meliadine
M22-3246
541050
6988544
70
198
-61
319
ML425-9740-D28
539732
6988907
-394
174
-64
355
ML400-10030-D8
539971
6988460
-29
183
-63
418
ML450-9290-D9
539290
6988466
-372
206
-44
164
ML450-9290-D15
539291
6988466
-371
120
-78
252
ML400-10200-D2
540223
6988459
-318
169
-14
336
ML400-10200-D8
540224
6988459
-318
162
-33
375
M22-3477
543080
6986524
10,057
206
-65
498
M22-3473
542520
6986738
10,064
212
-73
544
Hope Bay
HBBCO23-153
433490
7559620
406
112
10
417
HBBCO23-154
433555
7559740
388
127
-48
504
HBD23-071
433113
7558515
34
73
-61
1,068
HBM23-086
435581
7548394
26
240
-58
992
HBM23-091
435183
7547960
26
84
-66
666
HBM23-095
435564
7548420
26
231
-54
871
HBM23-105
435438
7548956
26
240
-58
912
Kittila
RIE23-603
2558675
7539402
-842
55
-12
561
RIE23-607
2558673
7539402
-842
43
-13
286
ROD23-700
2558703
7537464
-786
90
-60
732
ROU23-602
2558712
7537565
-790
77
-58
566
STEC22-005
2558662
7538959
99
130
-10
181
*Coordinate Systems: NAD 1983 UTM Zone 18N for Goldex; NAD 1983 UTM Zone 17N for Detour Lake, Macassa and AK deposit; NAD 1983 UTM Zone 14N for Meliadine; NAD 1983 UTM Zone 13N for Hope Bay; Finnish Coordinate System KKJ Zone 2 for Kittila.
APPENDIX – FINANCIAL INFORMATION
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022(i)
2023
2022
Operating margin(ii):
Revenues from mining operations
$ 1,718,197
$ 1,581,058
$ 3,227,858
$ 2,906,746
Production costs
743,253
657,636
1,396,397
1,319,371
Total operating margin(ii)
974,944
923,422
1,831,461
1,587,375
Operating margin(ii) by mine:
Quebec
LaRonde mine
69,896
90,877
132,409
194,441
LaRonde Zone 5 mine
14,795
7,866
22,093
24,522
Canadian Malartic complex(iii)
191,681
104,461
272,464
183,763
Goldex mine
45,112
41,656
85,340
78,774
Ontario
Detour Lake mine
204,272
214,841
396,845
342,899
Macassa mine
74,334
74,778
154,234
98,933
Nunavut
Meliadine mine
78,362
96,740
166,702
181,019
Meadowbank complex
78,368
68,044
158,177
62,846
Hope Bay project
—
—
—
144
Australia
Fosterville mine
132,243
125,442
264,945
232,298
Europe
Kittila mine
59,532
67,611
122,256
113,722
Mexico
Pinos Altos mine
15,680
11,487
34,206
30,918
Creston Mascota mine
—
642
—
1,819
La India mine
10,669
18,977
21,790
41,277
Total operating margin(ii)
974,944
923,422
1,831,461
1,587,375
Amortization of property, plant and mine development
381,262
269,891
685,221
525,535
Revaluation gain(iv)
—
—
(1,543,414)
—
Exploration, corporate and other
127,342
196,680
277,815
425,318
Income before income and mining taxes
466,340
456,851
2,411,839
636,522
Income and mining taxes expense
139,519
166,462
268,127
227,057
Net income for the period
$ 326,821
$ 290,389
$ 2,143,712
$ 409,465
Net income per share — basic
$ 0.66
$ 0.64
$ 4.45
$ 0.97
Net income per share — diluted
$ 0.66
$ 0.63
$ 4.43
$ 0.97
Cash flows:
Cash provided by operating activities
$ 722,000
$ 633,266
$ 1,371,613
$ 1,140,698
Cash used in investing activities
$ (450,202)
$ (394,129)
$ (1,848,947)
$ 141,523
Cash used in financing activities
$ (582,351)
$ (294,307)
$ 254,082
$ (462,165)
Realized prices:
Gold (per ounce)
$ 1,975
$ 1,866
$ 1,935
$ 1,872
Silver (per ounce)
$ 24.43
$ 22.21
$ 23.72
$ 23.20
Zinc (per tonne)
$ 2,343
$ 3,947
$ 2,685
$ 3,769
Copper (per tonne)
$ 7,898
$ 8,953
$ 8,590
$ 9,591
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Payable production(v):
Gold (ounces):
Quebec
LaRonde mine
58,635
70,736
118,168
158,285
LaRonde Zone 5 mine
18,145
17,774
38,219
35,262
Canadian Malartic complex(iii)
177,755
87,186
258,440
167,695
Goldex mine
37,716
36,877
71,739
71,322
Ontario
Detour Lake mine
169,352
195,515
331,209
295,958
Macassa mine
57,044
61,262
121,159
85,750
Nunavut
Meliadine mine
87,682
97,572
178,149
178,276
Meadowbank complex
94,775
96,698
205,885
156,463
Australia
Fosterville mine
81,813
86,065
168,371
167,892
Europe
Kittila mine
50,130
64,814
113,822
110,322
Mexico
Pinos Altos mine
22,159
23,020
46,293
48,190
Creston Mascota mine
165
635
409
1,641
La India mine
17,833
20,016
34,154
41,718
Total gold (ounces):
873,204
858,170
1,686,017
1,518,774
Silver (thousands of ounces):
619
588
1,164
1,197
Zinc (tonnes)
2,567
2,568
4,854
3,637
Copper (tonnes)
721
778
1,251
1,547
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Payable metal sold(vi):
Gold (ounces):
Quebec
LaRonde mine
61,920
61,296
110,082
132,263
LaRonde Zone 5 mine
18,923
13,538
34,384
31,133
Canadian Malartic complex(iii)
168,257
85,160
240,066
157,428
Goldex mine
37,114
36,681
73,031
70,565
Ontario
Detour Lake mine
160,281
188,517
323,575
320,354
Macassa mine
57,102
58,050
120,030
87,580
Nunavut
Meliadine mine
79,153
97,354
168,739
185,126
Meadowbank complex
98,980
93,737
209,005
142,492
Hope Bay mine
—
—
—
98
Australia
Fosterville mine
85,500
93,177
174,500
195,127
Europe
Kittila mine
51,800
64,378
112,520
115,993
Mexico
Pinos Altos mine
22,355
24,730
46,591
49,517
Creston Mascota mine
—
599
—
1,454
La India mine
17,463
19,306
33,883
40,315
Total gold (ounces):
858,848
836,523
1,646,406
1,529,445
Silver (thousands of ounces):
597
559
1,149
1,171
Zinc (tonnes)
2,743
1,679
4,874
2,713
Copper (tonnes)
713
783
1,281
1,549
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Total cash costs per ounce of gold produced — co-product basis(vii):
Quebec
LaRonde mine
$ 1,046
$ 829
$ 1,091
$ 744
LaRonde Zone 5 mine
1,213
983
1,189
981
Canadian Malartic complex(iii)
783
767
791
789
Goldex mine
777
718
793
747
Ontario
Detour Lake mine
734
645
754
634
Macassa mine
750
584
675
643
Nunavut
Meliadine mine
1,020
839
979
914
Meadowbank complex
1,164
999
1,152
1,311
Australia
Fosterville mine
437
352
417
331
Europe
Kittila mine
901
829
848
917
Mexico
Pinos Altos mine
1,582
1,604
1,460
1,459
Creston Mascota mine
—
906
—
683
La India mine
1,408
959
1,369
904
Weighted average total cash costs per ounce of gold produced
$ 870
$ 758
$ 866
$ 800
Total cash costs per ounce of gold produced — by-product basis(vii):
Quebec
LaRonde mine
$ 787
$ 566
$ 840
$ 517
LaRonde Zone 5 mine
1,198
982
1,175
978
Canadian Malartic complex(iii)
772
753
779
772
Goldex mine
776
718
792
746
Ontario
Detour Lake mine
731
640
750
626
Macassa mine
747
582
672
641
Nunavut
Meliadine mine
1,019
837
978
912
Meadowbank complex
1,156
993
1,144
1,305
Australia
Fosterville mine
436
351
416
331
Europe
Kittila mine
899
828
847
915
Mexico
Pinos Altos mine
1,282
1,383
1,196
1,224
Creston Mascota mine
—
899
—
598
La India mine
1,385
936
1,348
876
Weighted average total cash costs per ounce of gold produced
$ 840
$ 726
$ 836
$ 763
Notes:
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger
(ii) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin and Reconciliation of Non-GAAP Financial Performance Measures - Reconciliation of Operating Margin to Net Income for a reconciliation of this measure to the recent IFRS measure
(iii) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter
(iv) Revaluation gain on the 50% interest the Company owned in Canadian Malartic complex prior to the Yamana Transaction
(v) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period
(vi) The Canadian Malartic complex's payable metal sold excludes the 5.0% net smelter return royalty held by Osisko Gold Royalties Ltd. The Detour Lake mine's payable metal sold excludes the 2% net smelter royalty held by Franco-Nevada Corporation. The Macassa mine's payable metal sold excludes the 1.5% net smelter royalty held by Franco-Nevada Corporation
(vii) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne and Note to Investors Concerning Certain Measures of Performance for more information on the Company's calculation and use of total cash cost per ounce of gold produced
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, except share amounts, IFRS basis)
(Unaudited)
As at
As at
June 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$ 432,526
$ 658,625
Trade receivables
10,141
8,579
Inventories
1,253,112
1,209,075
Income taxes recoverable
25,696
35,054
Fair value of derivative financial instruments
14,792
8,774
Other current assets
372,984
259,952
Total current assets
2,109,251
2,180,059
Non-current assets:
Goodwill
4,574,777
2,044,123
Property, plant and mine development
21,223,554
18,459,400
Investments
340,974
332,742
Deferred income and mining tax asset
12,603
11,574
Other assets
1,050,493
466,910
Total assets
$ 29,311,652
$ 23,494,808
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
$ 806,687
$ 672,503
Share based liabilities
11,310
15,148
Interest payable
8,151
16,496
Income taxes payable
70,870
4,187
Current portion of long-term debt
—
100,000
Reclamation provision
42,818
23,508
Lease obligations
47,964
36,466
Fair value of derivative financial instruments
18,156
78,114
Total current liabilities
1,005,956
946,422
Non-current liabilities:
Long-term debt
1,942,019
1,242,070
Reclamation provision
986,813
878,328
Lease obligations
125,460
114,876
Share based liabilities
10,377
17,277
Deferred income and mining tax liabilities
4,928,181
3,981,875
Other liabilities
359,643
72,615
Total liabilities
9,358,449
7,253,463
EQUITY
Common shares:
Outstanding — 495,442,295 common shares issued, less 578,087 shares held in trust
18,224,982
16,251,221
Stock options
200,300
197,430
Contributed surplus
22,074
23,280
Retained earnings (deficit)
1,558,021
(201,580)
Other reserves
(52,174)
(29,006)
Total equity
19,953,203
16,241,345
Total liabilities and equity
$ 29,311,652
$ 23,494,808
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
(thousands of United States dollars, except per share amounts, IFRS basis)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Restated(i)
Restated(i)
REVENUES
Revenues from mining operations
$ 1,718,197
$ 1,581,058
$ 3,227,858
$ 2,906,746
COSTS, INCOME AND EXPENSES
Production(ii)
743,253
657,636
1,396,397
1,319,371
Exploration and corporate development
54,422
70,352
108,190
136,194
Amortization of property, plant and mine development
381,262
269,891
685,221
525,535
General and administrative
47,312
49,275
95,520
116,817
Finance costs
35,837
20,961
59,285
43,614
(Gain) loss on derivative financial instruments
(26,433)
40,753
(32,972)
12,089
Foreign currency translation loss (gain)
4,014
(13,492)
4,234
(12,282)
Care and maintenance
9,411
9,257
20,656
19,713
Revaluation gain(iii)
—
—
(1,543,414)
—
Other expenses
2,779
19,574
22,902
109,173
Income before income and mining taxes
466,340
456,851
2,411,839
636,522
Income and mining taxes expense
139,519
166,462
268,127
227,057
Net income for the period
$ 326,821
$ 290,389
$ 2,143,712
$ 409,465
Net income per share - basic
$ 0.66
$ 0.64
$ 4.45
$ 0.97
Net income per share - diluted(iv)
$ 0.66
$ 0.63
$ 4.43
$ 0.97
Adjusted net income per share - basic(iv)
$ 0.65
$ 0.79
$ 1.23
$ 1.44
Adjusted net income per share - diluted(iv)
$ 0.65
$ 0.79
$ 1.22
$ 1.44
Weighted average number of common shares outstanding (in thousands):
Basic
494,138
455,285
481,553
419,997
Diluted
495,509
456,787
482,978
421,533
Notes:
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger.
(ii) Exclusive of amortization, which is shown separately.
(iii) Revaluation gain on the 50% interest previously owned in the Canadian Malartic complex.
(iv) Refer to Reconciliation of Adjusted Net Income to Net Income in this News Release for calculations supporting adjusted net income.
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars, IFRS basis)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Restated(i)
Restated(i)
OPERATING ACTIVITIES
Net income for the period
$ 326,821
$ 290,389
2,143,712
$ 409,465
Add (deduct) adjusting items:
Amortization of property, plant and mine development
381,262
269,891
685,221
525,535
Revaluation gain(ii)
—
—
(1,543,414)
—
Deferred income and mining taxes
7,469
87,488
43,572
82,611
Unrealized (gain) loss on currency and commodity derivatives
(50,088)
33,569
(65,976)
9,514
Unrealized loss on warrants
6,959
21,095
2,296
20,182
Stock-based compensation
13,380
6,959
26,527
29,207
Foreign currency translation loss (gain)
4,014
(13,492)
4,234
(12,282)
Other
3,207
10,056
5,651
7,735
Changes in non-cash working capital balances:
Trade receivables
(2,930)
(233)
5,465
38,835
Income taxes
65,428
(3,461)
89,405
(43,331)
Inventories
(28,815)
(10,110)
(26,747)
168,042
Other current assets
(99,880)
(78,258)
(88,885)
(117,865)
Accounts payable and accrued liabilities
108,128
32,689
100,859
25,045
Interest payable
(12,955)
(13,316)
(10,307)
(1,995)
Cash provided by operating activities
722,000
633,266
1,371,613
1,140,698
INVESTING ACTIVITIES
Additions to property, plant and mine development
(423,621)
(408,596)
(808,555)
(701,747)
Yamana transaction, net of cash and cash equivalents
—
—
(1,000,617)
—
Cash and cash equivalents acquired in Kirkland acquisition
—
—
—
838,732
Purchases of equity securities and other investments
(29,427)
(18,411)
(44,164)
(31,854)
Proceeds from loan repayment
—
40,000
—
40,000
Other investing activities
2,846
(7,122)
4,389
(3,608)
Cash (used in) provided by investing activities
(450,202)
(394,129)
(1,848,947)
141,523
FINANCING ACTIVITIES
Proceeds from Credit Facility
—
—
1,000,000
100,000
Repayment of Credit Facility
(900,000)
—
(900,000)
(100,000)
Proceeds from Term Loan Facility, net of financing costs
598,958
—
598,958
—
Repayment of Senior Notes
(100,000)
(125,000)
(100,000)
(125,000)
Repayment of lease obligations
(12,420)
(8,476)
(22,168)
(16,786)
Disbursements to associates
(21,899)
—
(21,899)
—
Dividends paid
(165,258)
(149,801)
(321,421)
(304,583)
Repurchase of common shares
(1,786)
(22,258)
(16,350)
(50,147)
Proceeds on exercise of stock options
12,750
6,104
23,052
23,945
Common shares issued
7,304
5,124
13,910
10,406
Cash (used in) provided by financing activities
(582,351)
(294,307)
254,082
(462,165)
Effect of exchange rate changes on cash and cash equivalents
(1,566)
30
(2,847)
1,013
Net (decrease) increase in cash and cash equivalents during the period
(312,119)
(55,140)
(226,099)
821,069
Cash and cash equivalents, beginning of period
744,645
1,061,995
658,625
185,786
Cash and cash equivalents, end of period
$ 432,526
$ 1,006,855
$ 432,526
$ 1,006,855
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid
$ 43,437
$ 33,219
$ 56,488
$ 41,422
Income and mining taxes paid
$ 74,828
$ 84,678
$ 139,765
$ 188,078
Notes:
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger.
(ii) Revaluation gain on the 50% interest previously owned in the Canadian Malartic complex.
AGNICO EAGLE MINES LIMITED
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES
(thousands of United States dollars, except where noted)
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures total cash costs per ounce of gold produced and minesite costs per tonne
The following tables set out a reconciliation of total cash costs per ounce of gold produced (on both a by-product basis and co-product basis) and minesite costs per tonne to production costs, exclusive of amortization, as presented in the condensed interim consolidated statements of income in accordance with IFRS
Total Production Costs by Mine
Three Months Ended
June 30,
Six Months Ended
June 30,
(thousands of United States dollars)
2023
2022
2023
2022
Quebec
LaRonde mine
$ 63,969
$ 33,949
$ 103,676
$ 79,790
LaRonde Zone 5 mine
21,763
17,133
43,987
33,866
LaRonde complex
85,732
51,082
147,663
113,656
Canadian Malartic complex(i)
144,190
56,405
201,481
113,342
Goldex mine
28,160
26,530
55,995
52,747
Ontario
Detour Lake mine
112,796
137,429
226,818
257,394
Macassa mine
38,545
33,001
76,504
65,315
Nunavut
Meliadine mine
78,817
86,386
160,011
165,065
Meadowbank complex
117,488
107,373
247,492
204,084
Australia
Fosterville mine
35,831
48,303
72,430
136,304
Europe
Kittila mine
43,336
53,315
96,631
102,766
Mexico
Pinos Altos mine
34,709
39,873
67,631
72,409
Creston Mascota mine
—
484
—
1,099
La India mine
23,649
17,455
43,741
35,190
Production costs per the condensed interim consolidated statements of income
$ 743,253
$ 657,636
$ 1,396,397
$ 1,319,371
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne by Mine
(thousands of United States dollars, except as noted)
LaRonde mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
58,635
70,736
118,168
158,285
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 63,969
$ 1,091
$ 33,949
$ 480
$ 103,676
$ 877
$ 79,790
$ 504
Inventory adjustments(ii)
(8,971)
(153)
20,746
293
13,534
115
31,673
200
Realized gains and losses on hedges of production costs
770
13
(127)
(2)
1,848
16
(612)
(4)
Other adjustments(v)
5,555
95
4,079
58
9,903
83
6,841
44
Cash operating costs (co-product basis)
$ 61,323
$ 1,046
$ 58,647
$ 829
$ 128,961
$ 1,091
$ 117,692
$ 744
By-product metal revenues
(15,157)
(259)
(18,643)
(263)
(29,689)
(251)
(35,861)
(227)
Cash operating costs (by-product basis)
$ 46,166
$ 787
$ 40,004
$ 566
$ 99,272
$ 840
$ 81,831
$ 517
LaRonde mine
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months EndedJune 30, 2022
Tonnes of ore milled (thousands of tonnes)
347
423
736
877
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 63,969
$ 185
$ 33,949
$ 80
$ 103,676
$ 141
$ 79,790
$ 91
Production costs (C$)
$ 85,861
$ 247
$ 43,317
$ 103
$ 139,434
$ 189
$ 101,332
$ 115
Inventory adjustments (C$)(ii)
(11,297)
(33)
25,856
61
18,426
25
38,213
44
Other adjustments (C$)(v)
(3,302)
(8)
(3,371)
(8)
(6,443)
(8)
(6,877)
(8)
Minesite operating costs (C$)
$ 71,262
$ 206
$ 65,802
$ 156
$ 151,417
$ 206
$ 132,668
$ 151
LaRonde Zone 5 mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
18,145
17,774
38,219
35,262
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 21,763
$ 1,199
$ 17,133
$ 964
$ 43,987
$ 1,151
$ 33,866
$ 960
Inventory adjustments(ii)
(784)
(43)
350
20
(261)
(7)
815
24
Realized gains and losses on hedges of production costs
257
14
(30)
(2)
616
16
(143)
(4)
Other adjustments(v)
775
43
19
1
1,111
29
49
1
Cash operating costs (co-product basis)
$ 22,011
$ 1,213
$ 17,472
$ 983
$ 45,453
$ 1,189
$ 34,587
$ 981
By-product metal revenues
(271)
(15)
(28)
(1)
(546)
(14)
(119)
(3)
Cash operating costs (by-product basis)
$ 21,740
$ 1,198
$ 17,444
$ 982
$ 44,907
$ 1,175
$ 34,468
$ 978
LaRonde Zone 5 mine
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
313
291
632
570
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 21,763
$ 70
$ 17,133
$ 59
$ 43,987
$ 70
$ 33,866
$ 59
Production costs (C$)
$ 29,277
$ 94
$ 21,854
$ 75
$ 59,265
$ 94
$ 43,027
$ 75
Inventory adjustments (C$)(ii)
(1,147)
(4)
523
2
(409)
(1)
1,099
2
Minesite operating costs (C$)
$ 28,130
$ 90
$ 22,377
$ 77
$ 58,856
$ 93
$ 44,126
$ 77
LaRonde complex
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months EndedJune 30, 2023
Six Months EndedJune 30, 2022
Gold production (ounces)
76,780
88,510
156,387
193,547
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 85,732
$ 1,117
$ 51,082
$ 577
$ 147,663
$ 944
$ 113,656
$ 587
Inventory adjustments(ii)
(9,755)
(127)
21,096
238
13,273
85
32,488
168
Realized gains and losses on hedges of production costs
1,027
13
(157)
(2)
2,464
16
(755)
(4)
Other adjustments(v)
6,330
82
4,098
47
11,014
70
6,890
36
Cash operating costs (co-product basis)
$ 83,334
$ 1,085
$ 76,119
$ 860
$ 174,414
$ 1,115
$ 152,279
$ 787
By-product metal revenues
(15,428)
(201)
(18,671)
(211)
(30,235)
(193)
(35,980)
(186)
Cash operating costs (by-product basis)
$ 67,906
$ 884
$ 57,448
$ 649
$ 144,179
$ 922
$ 116,299
$ 601
LaRonde complex
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
660
714
1,368
1,447
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 85,732
$ 130
$ 51,082
$ 72
$ 147,663
$ 108
$ 113,656
$ 79
Production costs (C$)
$ 115,138
$ 174
$ 65,171
$ 92
$ 198,699
$ 145
$ 144,359
$ 100
Inventory adjustments (C$)(ii)
(12,444)
(19)
26,379
37
18,017
13
39,312
27
Other adjustments (C$)(v)
(3,302)
(4)
(3,371)
(5)
(6,443)
(4)
(6,877)
(5)
Minesite operating costs (C$)
$ 99,392
$ 151
$ 88,179
$ 124
$ 210,273
$ 154
$ 176,794
$ 122
Canadian Malartic complex
Per Ounce of Gold Produced(i)
Three Months EndedJune 30, 2023
Three Months EndedJune 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
177,755
87,186
258,440
167,695
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 144,190
$ 811
$ 56,405
$ 647
$ 201,481
$ 780
$ 113,342
$ 676
Inventory adjustments(ii)
43
—
2,139
25
538
2
2,867
17
Purchase price allocation to inventory(iv)
(22,821)
(128)
—
—
(22,821)
(88)
—
—
Other adjustments(v)
17,835
100
8,332
95
25,217
97
16,114
96
Cash operating costs (co-product basis)
$ 139,247
$ 783
$ 66,876
$ 767
$ 204,415
$ 791
$ 132,323
$ 789
By-product metal revenues
(2,069)
(11)
(1,243)
(14)
(3,207)
(12)
(2,905)
(17)
Cash operating costs (by-product basis)
$ 137,178
$ 772
$ 65,633
$ 753
$ 201,208
$ 779
$ 129,418
$ 772
Canadian Malartic complex
Per Tonne(i)
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
4,882
2,399
7,144
4,811
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 144,190
$ 30
$ 56,405
$ 24
$ 201,481
$ 28
$ 113,342
$ 24
Production costs (C$)
$ 194,997
$ 40
$ 71,080
$ 30
$ 271,662
$ 38
$ 142,709
$ 30
Inventory adjustments (C$)(ii)
511
—
2,664
1
1,251
—
3,674
1
Purchase price allocation to inventory (C$)(iv)
(30,651)
(6)
—
—
(30,651)
(4)
—
—
Other adjustments (C$)(v)
23,599
5
10,581
4
33,424
5
20,228
4
Minesite operating costs (C$)
$ 188,456
$ 39
$ 84,325
$ 35
$ 275,686
$ 39
$ 166,611
$ 35
Goldex mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
37,716
36,877
71,739
71,322
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 28,160
$ 747
$ 26,530
$ 719
$ 55,995
$ 781
$ 52,747
$ 740
Inventory adjustments(ii)
582
16
(22)
(1)
(455)
(6)
688
10
Realized gains and losses on hedges of production costs
505
13
(56)
(1)
1,212
17
(271)
(5)
Other adjustments(v)
40
1
41
1
102
1
95
2
Cash operating costs (co-product basis)
$ 29,287
$ 777
$ 26,493
$ 718
$ 56,854
$ 793
$ 53,259
$ 747
By-product metal revenues
(11)
(1)
(5)
—
(25)
(1)
(21)
(1)
Cash operating costs (by-product basis)
$ 29,276
$ 776
$ 26,488
$ 718
$ 56,829
$ 792
$ 53,238
$ 746
Goldex mine
Per Tonne
Three Months EndedJune 30, 2023
Three Months EndedJune 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
761
738
1,459
1,482
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 28,160
$ 37
$ 26,530
$ 36
$ 55,995
$ 38
$ 52,747
$ 36
Production costs (C$)
$ 37,859
$ 50
$ 33,951
$ 46
$ 75,486
$ 52
$ 67,171
$ 45
Inventory adjustments (C$)(ii)
730
1
23
—
(660)
(1)
915
1
Minesite operating costs (C$)
$ 38,589
$ 51
$ 33,974
$ 46
$ 74,826
$ 51
$ 68,086
$ 46
Detour Lake mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months EndedJune 30, 2022
Gold production (ounces)
169,352
195,515
331,209
295,958
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 112,796
$ 666
$ 137,429
$ 703
$ 226,818
$ 685
$ 257,394
$ 870
Inventory adjustments(ii)
(474)
(3)
3,988
20
(168)
—
(12,633)
(43)
Realized gains and losses on hedges of production costs
2,541
15
—
—
6,095
18
—
—
Purchase price allocation to inventory(iv)
—
—
(22,690)
(116)
—
—
(68,837)
(233)
Other adjustments(v)
9,410
56
7,304
38
16,985
51
11,589
40
Cash operating costs (co-product basis)
$ 124,273
$ 734
$ 126,031
$ 645
$ 249,730
$ 754
$ 187,513
$ 634
By-product metal revenues
(505)
(3)
(1,015)
(5)
(1,187)
(4)
(2,220)
(8)
Cash operating costs (by-product basis)
$ 123,768
$ 731
$ 125,016
$ 640
$ 248,543
$ 750
$ 185,293
$ 626
Detour Lake mine
Per Tonne
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
6,800
6,519
13,197
9,789
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 112,796
$ 17
$ 137,429
$ 21
$ 226,818
$ 17
$ 257,394
$ 26
Production costs (C$)
$ 151,645
$ 22
$ 175,421
$ 27
$ 305,553
$ 23
$ 327,239
$ 33
Inventory adjustments (C$)(ii)
12,357
2
5,205
1
12,872
1
(15,867)
(2)
Purchase price allocation to inventory(C$)(iv)
—
—
(29,108)
(5)
—
—
(87,508)
(9)
Other adjustments (C$)(v)
11,381
2
9,349
1
20,146
2
14,749
2
Minesite operating costs (C$)
$ 175,383
$ 26
$ 160,867
$ 24
$ 338,571
$ 26
$ 238,613
$ 24
Macassa mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
57,044
61,262
121,159
85,750
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 38,545
$ 676
$ 33,001
$ 539
$ 76,504
$ 631
$ 65,315
$ 762
Inventory adjustments(ii)
(178)
(3)
953
16
(1,473)
(11)
(1,147)
(13)
Realized gains and losses on hedges of production costs
812
14
—
—
1,949
16
—
—
Purchase price allocation to inventory(iv)
—
—
501
8
—
—
(10,326)
(120)
Other adjustments(v)
3,613
63
1,332
21
4,757
39
1,288
14
Cash operating costs (co-product basis)
$ 42,792
$ 750
$ 35,787
$ 584
$ 81,737
$ 675
$ 55,130
$ 643
By-product metal revenues
(168)
(3)
(114)
(2)
(376)
(3)
(187)
(2)
Cash operating costs (by-product basis)
$ 42,624
$ 747
$ 35,673
$ 582
$ 81,361
$ 672
$ 54,943
$ 641
Macassa mine
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
112
88
199
135
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 38,545
$ 344
$ 33,001
$ 374
$ 76,504
$ 384
$ 65,315
$ 483
Production costs (C$)
$ 51,994
$ 464
$ 42,211
$ 479
$ 103,236
$ 519
$ 83,041
$ 615
Inventory adjustments (C$)(ii)
(359)
(3)
1,278
14
(2,076)
(10)
(1,366)
(10)
Purchase price allocation to inventory(C$)(iv)
—
—
450
5
—
—
(13,128)
(97)
Other adjustments (C$)(v)
4,775
42
1,725
21
6,291
30
1,657
12
Minesite operating costs (C$)
$ 56,410
$ 503
$ 45,664
$ 519
$ 107,451
$ 539
$ 70,204
$ 520
Meliadine mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months EndedJune 30, 2022
Gold production (ounces)
87,682
97,572
178,149
178,276
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 78,817
$ 899
$ 86,386
$ 885
$ 160,011
$ 898
$ 165,065
$ 926
Inventory adjustments(ii)
11,228
128
(3,671)
(38)
14,852
83
(39)
—
Realized gains and losses on hedges of production costs
(451)
(5)
(884)
(9)
(363)
(2)
(2,195)
(13)
Other adjustments(v)
(118)
(2)
68
1
(13)
—
163
1
Cash operating costs (co-product basis)
$ 89,476
$ 1,020
$ 81,899
$ 839
$ 174,487
$ 979
$ 162,994
$ 914
By-product metal revenues
(139)
(1)
(188)
(2)
(339)
(1)
(405)
(2)
Cash operating costs (by-product basis)
$ 89,337
$ 1,019
$ 81,711
$ 837
$ 174,148
$ 978
$ 162,589
$ 912
Meliadine mine
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months EndedJune 30, 2022
Tonnes of ore milled (thousands of tonnes)
461
449
937
881
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 78,817
$ 171
$ 86,386
$ 192
$ 160,011
$ 171
$ 165,065
$ 187
Production costs (C$)
$ 105,834
$ 230
$ 109,488
$ 244
$ 214,715
$ 229
$ 208,925
$ 237
Inventory adjustments (C$)(ii)
14,556
31
(4,241)
(10)
19,606
21
284
—
Minesite operating costs (C$)
$ 120,390
$ 261
$ 105,247
$ 234
$ 234,321
$ 250
$ 209,209
$ 237
Meadowbank complex
Per Ounce of Gold Produced
Three Months EndedJune 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months EndedJune 30, 2022
Gold production (ounces)
94,775
96,698
205,885
156,463
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 117,488
$ 1,240
$ 107,373
$ 1,110
$ 247,492
$ 1,202
$ 204,084
$ 1,304
Inventory adjustments(ii)
(5,048)
(54)
(9,132)
(94)
(6,702)
(32)
6,071
39
Realized gains and losses on hedges of production costs
(2,118)
(22)
(1,631)
(17)
(3,617)
(18)
(3,674)
(23)
Operational care & maintenance due to COVID-19(iii)
—
—
—
—
—
—
(1,436)
(9)
Other adjustments(v)
4
—
(26)
—
(51)
—
40
—
Cash operating costs (co-product basis)
$ 110,326
$ 1,164
$ 96,584
$ 999
$ 237,122
$ 1,152
$ 205,085
$ 1,311
By-product metal revenues
(723)
(8)
(587)
(6)
(1,548)
(8)
(882)
(6)
Cash operating costs (by-product basis)
$ 109,603
$ 1,156
$ 95,997
$ 993
$ 235,574
$ 1,144
$ 204,203
$ 1,305
Meadowbank complex
Per Tonne
Three Months EndedJune 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
845
930
1,828
1,785
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 117,488
$ 139
$ 107,373
$ 116
$ 247,492
$ 135
$ 204,084
$ 114
Production costs (C$)
$ 157,407
$ 186
$ 136,663
$ 147
$ 330,385
$ 181
$ 259,128
$ 145
Inventory adjustments (C$)(ii)
(6,632)
(8)
(10,911)
(12)
(8,858)
(5)
7,897
5
Operational care and maintenance due to COVID-19 (C$)(iii)
—
—
—
—
—
—
(1,793)
(1)
Minesite operating costs (C$)
$ 150,775
$ 178
$ 125,752
$ 135
$ 321,527
$ 176
$ 265,232
$ 149
Fosterville mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
81,813
86,065
168,371
167,892
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 35,831
$ 438
$ 48,303
$ 561
$ 72,430
$ 430
$ 136,304
$ 812
Inventory adjustments(ii)
(522)
(6)
(970)
(12)
(2,885)
(17)
(6,809)
(41)
Realized gains and losses on hedges of production costs
489
6
—
—
677
4
—
—
Purchase price allocation to inventory(iv)
—
—
(16,997)
(197)
—
—
(73,674)
(439)
Other adjustments(v)
(7)
(1)
—
—
39
—
—
—
Cash operating costs (co-product basis)
$ 35,791
$ 437
$ 30,336
$ 352
$ 70,261
$ 417
$ 55,821
$ 332
By-product metal revenues
(121)
(1)
(125)
(1)
(278)
(1)
(313)
(1)
Cash operating costs (by-product basis)
$ 35,670
$ 436
$ 30,211
$ 351
$ 69,983
$ 416
$ 55,508
$ 331
Fosterville mine
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore milled (thousands of tonnes)
176
122
324
213
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 35,831
$ 204
$ 48,303
$ 396
$ 72,430
$ 224
$ 136,304
$ 641
Production costs (A$)
A$ 54,280
A$ 308
A$ 71,814
A$ 597
A$ 108,462
A$ 335
A$ 189,040
A$ 890
Inventory adjustments (A$)(ii)
(756)
(4)
(1,204)
(9)
(4,357)
(14)
(9,409)
(43)
Purchase price allocation to inventory(A$)(iv)
—
—
(26,678)
(218)
—
—
(102,178)
(478)
Minesite operating costs (A$)
A$ 53,524
A$ 304
A$ 43,932
A$ 370
A$ 104,105
A$ 321
A$ 77,453
A$ 369
Kittila mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months EndedJune 30, 2023
Six Months EndedJune 30, 2022
Gold production (ounces)
50,130
64,814
113,822
110,322
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 43,336
$ 864
$ 53,315
$ 823
$ 96,631
$ 849
$ 102,766
$ 932
Inventory adjustments(ii)
2,784
56
(1,164)
(19)
2,744
24
(3,955)
(36)
Realized gains and losses on hedges of production costs
(925)
(18)
1,542
24
(1,558)
(14)
2,220
20
Other adjustments(v)
(50)
(1)
39
1
(1,273)
(11)
93
1
Cash operating costs (co-product basis)
$ 45,145
$ 901
$ 53,732
$ 829
$ 96,544
$ 848
$ 101,124
$ 917
By-product metal revenues
(93)
(2)
(78)
(1)
(162)
(1)
(167)
(2)
Cash operating costs (by-product basis)
$ 45,052
$ 899
$ 53,654
$ 828
$ 96,382
$ 847
$ 100,957
$ 915
Kittila mine
Per Tonne
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months EndedJune 30, 2023
Six Months EndedJune 30, 2022
Tonnes of ore milled (thousands of tonnes)
417
556
913
1,017
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 43,336
$ 104
$ 53,315
$ 96
$ 96,631
$ 106
$ 102,766
$ 101
Production costs (€)
€ 42,251
€ 101
€ 49,550
€ 89
€ 91,002
€ 100
€ 93,458
€ 92
Inventory adjustments (€)(ii)
946
3
(655)
(1)
832
1
(2,929)
(3)
Minesite operating costs (€)
€ 43,197
€ 104
€ 48,895
€ 88
€ 91,834
€ 101
€ 90,529
€ 89
Pinos Altos mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months Ended June 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
22,159
23,020
46,293
48,190
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 34,709
$ 1,566
$ 39,873
$ 1,732
$ 67,631
$ 1,461
$ 72,409
$ 1,503
Inventory adjustments(ii)
761
34
(2,955)
(128)
513
11
(2,156)
(45)
Realized gains and losses on hedges of production costs
(690)
(31)
(313)
(14)
(1,143)
(25)
(547)
(11)
Other adjustments(v)
286
13
322
14
578
13
625
12
Cash operating costs (co-product basis)
$ 35,066
$ 1,582
$ 36,927
$ 1,604
$ 67,579
$ 1,460
$ 70,331
$ 1,459
By-product metal revenues
(6,653)
(300)
(5,082)
(221)
(12,227)
(264)
(11,345)
(235)
Cash operating costs (by-product basis)
$ 28,413
$ 1,282
$ 31,845
$ 1,383
$ 55,352
$ 1,196
$ 58,986
$ 1,224
Pinos Altos mine
Per Tonne
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months EndedJune 30, 2022
Tonnes of ore processed (thousands of tonnes)
401
366
765
750
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 34,709
$ 87
$ 39,873
$ 109
$ 67,631
$ 88
$ 72,409
$ 97
Inventory adjustments(ii)
1,905
3
(2,955)
(8)
1,657
3
(2,156)
(3)
Minesite operating costs
$ 36,614
$ 90
$ 36,918
$ 101
$ 69,288
$ 91
$ 70,253
$ 94
Creston Mascota mine
Per Ounce of Gold Produced
Three Months EndedJune 30, 2023
Three Months Ended June 30, 2022
Six Months EndedJune 30, 2023
Six Months EndedJune 30, 2022
Gold production (ounces)
165
635
409
1,641
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ —
$ —
$ 484
$ 762
$ —
$ —
$ 1,099
$ 670
Inventory adjustments(ii)
—
—
60
95
—
—
(27)
(16)
Other adjustments(v)
—
—
30
49
—
—
48
29
Cash operating costs (co-product basis)
$ —
$ —
$ 574
$ 906
$ —
$ —
$ 1,120
$ 683
By-product metal revenues
—
—
(5)
(7)
—
—
(140)
(85)
Cash operating costs (by-product basis)
$ —
$ —
$ 569
$ 899
$ —
$ —
$ 980
$ 598
Creston Mascota mine
Per Tonne(vi)
Three Months EndedJune 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore processed (thousands of tonnes)
—
—
—
—
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ —
$ —
$ 484
$ —
$ —
$ —
$ 1,099
$ —
Inventory adjustments(ii)
—
—
60
—
—
—
(27)
—
Other adjustments(v)
—
—
(544)
—
—
—
(1,072)
—
Minesite operating costs
$ —
$ —
$ —
$ —
$ —
$ —
$ —
$ —
La India mine
Per Ounce of Gold Produced
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months EndedJune 30, 2023
Six Months Ended June 30, 2022
Gold production (ounces)
17,833
20,016
34,154
41,718
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
(thousands)
($ per ounce)
Production costs
$ 23,649
$ 1,326
$ 17,455
$ 872
$ 43,741
$ 1,281
$ 35,190
$ 844
Inventory adjustments(ii)
1,318
74
1,564
78
2,766
80
2,132
51
Other adjustments(v)
134
8
177
9
263
8
373
9
Cash operating costs (co-product basis)
$ 25,101
$ 1,408
$ 19,196
$ 959
$ 46,770
$ 1,369
$ 37,695
$ 904
By-product metal revenues
(407)
(23)
(451)
(23)
(722)
(21)
(1,159)
(28)
Cash operating costs (by-product basis)
$ 24,694
$ 1,385
$ 18,745
$ 936
$ 46,048
$ 1,348
$ 36,536
$ 876
La India mine
Per Tonne
Three Months Ended June 30, 2023
Three Months EndedJune 30, 2022
Six Months Ended June 30, 2023
Six Months Ended June 30, 2022
Tonnes of ore processed (thousands of tonnes)
880
1,356
1,540
2,919
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 23,649
$ 27
$ 17,455
$ 13
$ 43,741
$ 28
$ 35,190
$ 12
Inventory adjustments(ii)
1,318
1
1,564
1
2,766
2
2,132
1
Minesite operating costs
$ 24,967
$ 28
$ 19,019
$ 14
$ 46,507
$ 30
$ 37,322
$ 13
Notes:
(i) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter
(ii) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue
(iii) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company's mine sites in response to the COVID-19 pandemic and includes primarily payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working during the period of reduced or suspended operations. These expenses also include payroll costs of employees who could not work following the period of temporary suspension or reduced operations due to the Company's effort to prevent or curtail community transmission of COVID-19. These costs were previously classified as "other adjustments" and have now been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impact of such events on the total cash costs per ounce and minesite cost per tonne
(iv) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa, and Fosterville mines as part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction and this adjustment reflects the fair value allocated to inventory at the Canadian Malartic complex as part of the purchase price allocation
(v) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, smelting, refining, and marketing charges to production costs
(vi) The Creston Mascota mine's cost calculations per tonne for the three and six months ended June 30, 2022 excludes approximately $0.5 and $1.1 million of production costs incurred during the period, respectively, following the ceasing of mining activities at the Bravo pit during the third quarter of 2020
Reconciliation of Production Costs to Total Cash Costs per Ounce Produced(vii) and All-in Sustaining Costs per Ounce of Gold Produced(vii)
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measure all-in sustaining costs per ounce of gold produced
The following tables set out a reconciliation of production costs to the Company's use of the non-GAAP measure all-in sustaining costs per ounce of gold produced for the six months ended June 30, 2023 and June 30, 2022 on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues)
Three Months Ended
June 30,
Six Months Ended
June 30,
(United States dollars per ounce of gold produced, except where noted)
2023
2022
2023
2022
Production costs per the condensed interim consolidated statements of income
(thousands of United States dollars)
$ 743,253
$ 657,636
$ 1,396,397
$ 1,319,371
Gold production (ounces)
873,204
858,170
1,686,017
1,518,774
Production costs per ounce of adjusted gold production
$ 851
$ 766
$ 828
$ 869
Adjustments:
Inventory adjustments(i)
1
14
14
12
Purchase price allocation to inventory(ii)
(26)
(46)
(13)
(101)
Realized gains and losses on hedges of production costs
1
(2)
3
(3)
Operational care and maintenance costs due to COVID-19(iii)
—
—
—
(1)
Other(iv)
43
26
34
24
Total cash costs per ounce of gold produced (co-product basis)(v)
$ 870
$ 758
$ 866
$ 800
By-product metal revenues
(30)
(32)
(30)
(37)
Total cash costs per ounce of gold produced (by-product basis)(v)
$ 840
$ 726
$ 836
$ 763
Adjustments:
Sustaining capital expenditures (including capitalized exploration)
237
231
226
197
General and administrative expenses (including stock option expense)
54
57
57
77
Non-cash reclamation provision and sustaining leases(vi)
19
12
19
14
All-in sustaining costs per ounce of gold produced (by-product basis)
$ 1,150
$ 1,026
$ 1,138
$ 1,051
By-product metal revenues
30
32
30
37
All-in sustaining costs per ounce of gold produced (co-product basis)
$ 1,180
$ 1,058
$ 1,168
$ 1,088
Notes:
(i) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue
(ii) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa and Fosterville mines as part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction and this adjustment reflects the fair value allocated to inventory at the Canadian Malartic complex as part of the purchase price allocation
(iii) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company's mine sites in response to the COVID-19 pandemic which primarily includes payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working during the period of reduced or suspended operations. These costs were previously classified as "other adjustments" and, as of 2022, have been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impact of such events on the total cash costs per ounce and minesite cost per tonne
(iv) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, smelting, refining and marketing charges to production costs
(v) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne for more information on the Company's use of total cash cost per ounce of gold produced
(vi) Sustaining leases are lease payments related to sustaining assets
Reconciliation of Operating Margin(i) to Net Income
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's disclosure of the non-GAAP measure operating margin
The following table sets out a reconciliation of net income to operating margin for the six months ended June 30, 2023 and June 30, 2022
Three Months Ended June 30, 2023
Revenues from
Mining
Production
Operating
Operations
Costs
Margin
LaRonde mine
$ 133,865
$ (63,969)
$ 69,896
LaRonde Zone 5 mine
36,558
(21,763)
14,795
Canadian Malartic complex(ii)
335,871
(144,190)
191,681
Goldex mine
73,272
(28,160)
45,112
Detour Lake mine
317,068
(112,796)
204,272
Macassa mine
112,879
(38,545)
74,334
Meliadine mine
157,179
(78,817)
78,362
Meadowbank complex
195,856
(117,488)
78,368
Fosterville mine
168,074
(35,831)
132,243
Kittila mine
102,868
(43,336)
59,532
Pinos Altos mine
50,389
(34,709)
15,680
La India mine
34,318
(23,649)
10,669
Segment totals
$ 1,718,197
$ (743,253)
$ 974,944
Corporate and other:
Exploration and corporate development
54,422
Amortization of property, plant, and mine development
381,262
General and administrative
47,312
Finance costs
35,837
Gain on derivative financial instruments
(26,433)
Environmental remediation
(1,420)
Foreign currency translation loss
4,014
Care and maintenance
9,411
Other expenses
4,199
Income and mining taxes expense
139,519
Net income per condensed interim consolidated statements of income
$ 326,821
Notes:
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company's use of operating margin
(ii) 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
Reconciliation of Operating Margin(i) to Net Income
Six Months Ended June 30, 2023
Revenues from
Mining
Production
Operating
Operations
Costs
Margin
LaRonde mine
$ 236,085
$ (103,676)
$ 132,409
LaRonde Zone 5 mine
66,080
(43,987)
22,093
Canadian Malartic complex(ii)
473,945
(201,481)
272,464
Goldex mine
141,335
(55,995)
85,340
Detour Lake mine
623,663
(226,818)
396,845
Macassa mine
230,738
(76,504)
154,234
Meliadine mine
326,713
(160,011)
166,702
Meadowbank complex
405,669
(247,492)
158,177
Fosterville mine
337,375
(72,430)
264,945
Kittila mine
218,887
(96,631)
122,256
Pinos Altos mine
101,837
(67,631)
34,206
La India mine
65,531
(43,741)
21,790
Segment totals
$ 3,227,858
$ (1,396,397)
$ 1,831,461
Corporate and other:
Exploration and corporate development
108,190
Amortization of property, plant, and mine development
685,221
General and administrative
95,520
Finance costs
59,285
Gain on derivative financial instruments
(32,972)
Environmental remediation
(1,977)
Foreign currency translation loss
4,234
Care and maintenance
20,656
Revaluation gain
(1,543,414)
Other expenses
24,879
Income and mining taxes expense
268,127
Net income per condensed interim consolidated statements of income
$ 2,143,712
Notes:
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin
(ii) 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
Reconciliation of Operating Margin(i) to Net Income
Three Months Ended June 30, 2022(ii)
Revenues from
Mining
Production
Operating
Operations
Costs
Margin
LaRonde mine
$ 124,826
$ (33,949)
$ 90,877
LaRonde Zone 5 mine
24,999
(17,133)
7,866
Canadian Malartic complex(iii)
160,866
(56,405)
104,461
Goldex mine
68,186
(26,530)
41,656
Detour Lake mine
352,270
(137,429)
214,841
Macassa mine
107,779
(33,001)
74,778
Meliadine mine
183,126
(86,386)
96,740
Meadowbank complex
175,417
(107,373)
68,044
Fosterville mine
173,745
(48,303)
125,442
Kittila mine
120,926
(53,315)
67,611
Pinos Altos mine
51,360
(39,873)
11,487
Creston Mascota mine
1,126
(484)
642
La India mine
36,432
(17,455)
18,977
Segment totals
$ 1,581,058
$ (657,636)
$ 923,422
Corporate and other:
Exploration and corporate development
70,352
Amortization of property, plant, and mine development
269,891
General and administrative
49,275
Finance costs
20,961
Loss on derivative financial instruments
40,753
Environmental remediation
(319)
Foreign currency translation gain
(13,492)
Care and maintenance
9,257
Other expenses
19,893
Income and mining taxes expense
166,462
Net income per condensed interim consolidated statements of income
$ 290,389
Notes:
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger
(iii) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter
Reconciliation of Operating Margin(i) to Net Income
Six Months Ended June 30, 2022(ii)
Revenues from
Mining
Production
Operating
Operations
Costs
Margin
LaRonde mine
$ 274,231
$ (79,790)
$ 194,441
LaRonde Zone 5 mine
58,388
(33,866)
24,522
Canadian Malartic complex(iii)
297,105
(113,342)
183,763
Goldex mine
131,521
(52,747)
78,774
Detour Lake mine
600,293
(257,394)
342,899
Macassa mine
164,248
(65,315)
98,933
Meliadine mine
346,084
(165,065)
181,019
Meadowbank complex
266,930
(204,084)
62,846
Hope Bay mine
144
—
144
Fosterville mine
368,602
(136,304)
232,298
Kittila mine
216,488
(102,766)
113,722
Pinos Altos mine
103,327
(72,409)
30,918
Creston Mascota mine
2,918
(1,099)
1,819
La India mine
76,467
(35,190)
41,277
Segment totals
$ 2,906,746
$ (1,319,371)
$ 1,587,375
Corporate and other:
Exploration and corporate development
136,194
Amortization of property, plant, and mine development
525,535
General and administrative
116,817
Finance costs
43,614
Loss on derivative financial instruments
12,089
Environmental remediation
(2,618)
Foreign currency translation gain
(12,282)
Care and maintenance
19,713
Other expenses
111,791
Income and mining taxes expense
227,057
Net income per condensed interim consolidated statements of income
$ 409,465
Notes:
(i) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating margin
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger
(iii) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter
Reconciliation of Sustaining Capital Expenditures(i) and Development Capital Expenditures(i) to the Consolidated Statements of Cash Flows
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Sustaining capital expenditures(i)(ii)
$ 206,914
$ 198,024
$ 381,545
$ 299,750
Development capital expenditures(i)(ii)
209,133
203,546
376,236
351,905
Total Capital Expenditures
$ 416,047
$ 401,570
$ 757,781
$ 651,655
Working capital adjustments
7,574
7,026
50,774
50,092
Additions to property, plant and mine development per the condensed interim consolidated statements of cash flows
$ 423,621
$ 408,596
$ 808,555
$ 701,747
Note:
(i) Sustaining capital expenditures and development capital expenditures are not recognized measures under IFRS and this data may not be comparable to other gold producers. See Note on Certain Measures of Performance for more information on the Company's use of the measures sustaining capital expenditures and development capital expenditures
(ii) Sustaining capital expenditures and development capital expenditures include capitalized exploration
Reconciliation of Long-Term Debt to Net Debt
As at
As at
June 30, 2023
December 31, 2022
Current portion of long-term debt per the consolidated balance sheets
$ —
$ 100,000
Non-current portion of long-term debt
1,942,019
1,242,070
Long-term debt
$ 1,942,019
$ 1,342,070
Adjustments:
Cash and cash equivalents
$ (432,526)
$ (658,625)
Net Debt
$ 1,509,493
$ 683,445
Reconciliation of Adjusted Net Income(i) to Net Income
(thousands of United States dollars)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023
2022
2023
2022
Restated(ii)
Restated(ii)
Net income for the period - basic
$ 326,821
$ 290,389
$ 2,143,712
$ 409,465
Dilutive impact of cash settling LTIP
(1,140)
(2,745)
(2,916)
398
Net income for the period - diluted
$ 325,681
$ 287,644
$ 2,140,796
$ 409,863
Foreign currency translation loss (gain)
4,014
(13,492)
4,234
(12,282)
Realized and unrealized (gain) loss on derivative financial instruments
(26,433)
40,753
(32,972)
12,089
Transaction costs and severance related to acquisitions
1,674
11,372
16,912
92,139
Revaluation gain on Yamana Transaction
—
—
(1,543,414)
—
Environmental remediation
(1,420)
(319)
(1,977)
(2,618)
Integration costs
—
457
—
457
Net loss on disposal of property,plant and equipment
1,058
2,828
3,601
3,914
Purchase price allocation to inventory(iii)
22,821
39,185
22,821
152,836
Income and mining taxes adjustments
(6,121)
(9,516)
(19,223)
(49,398)
Adjusted net income for the period - basic
$ 322,414
$ 361,657
$ 593,694
$ 606,602
Adjusted net income for the period - diluted
$ 321,274
$ 358,912
$ 590,778
$ 607,000
Notes:
(i) Adjusted net income is not a recognized measure under IFRS and this data may not be comparable to other gold producers. See Note on Certain Measures of Performance for more information on the Company's use of adjusted net income
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger
(iii) As part of the purchase price allocation in a business combination, the Company is required to determine the fair value of net assets acquired. These non-cash fair value adjustments which increased the cost of inventory sold during the period and are not representative of ongoing operations, were normalized from net income
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