Agnico Eagle Mines Limited (TSX: AEM) (NYSE: AEM) 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
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1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. |
2 Total cash costs per ounce is a non-GAAP ratio that is not a standardized financial measure under IFRS and, 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 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.
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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 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.
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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 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
midpoint below 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 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. 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 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 midpoint below surface (metres) |
Estimated true width (metres) |
Gold
grade (g/t) |
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) |
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.
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 Ended June 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 Ended June 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 Ended June 30, 2022 |
Six Months Ended June 30, 2023 |
Six Months Ended June 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 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) | 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 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) | 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 Ended June 30, 2022 |
Six Months Ended June 30, 2023 |
Six Months Ended June 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 Ended June 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 Ended June 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 Ended June 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 Ended June 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 Ended June 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 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) | 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 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) | 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 Ended June 30, 2022 |
Six Months Ended June 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 Ended June 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 Ended June 30, 2023 |
Six Months Ended June 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 Ended June 30, 2023 |
Six Months Ended June 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 Ended June 30, 2022 |
Six Months Ended June 30, 2023 |
Six Months Ended June 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 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) | 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 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 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 Ended June 30, 2022 |
Six Months Ended June 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 Ended June 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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