
Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) reported financial and operating results for the third quarter of 2022.
Third quarter of 2022 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 the financial reporting framework used to prepare the Company’s financial statements and, unless otherwise specified, is reported on a by-product basis in this news release. For the detailed calculation of production costs per ounce and the reconciliation of total cash costs to production costs, 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 financial reporting framework used to prepare the Company’s financial statements 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”. |
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4 Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under the financial reporting framework used to prepare the Company’s financial statements. 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”. |
“In the third quarter of 2022, the Company posted the best safety performance in its 65 year history and delivered solid operational results. With a strong first nine months of the year, the Company is tracking well to deliver on its production and cost guidance in 2022,” said Ammar Al-Joundi, Agnico Eagle’s President and Chief Executive Officer. “Despite headwinds from a lower gold price and cost inflation, the Company’s financial position remains strong. It gives us strategic flexibility and provides us with the ability to continue advancing our key development projects and exploration programs while maintaining capital returns to our shareholders,” added Mr. Al-Joundi.
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5 Net debt is a non-GAAP measure that is not a standardized measure under the financial reporting framework used to prepare the Company’s financial statements. For a reconciliation to long-term debt see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Long-Term Debt to Net Debt”. See also “Note Regarding Certain Measures of Performance”. |
Third Quarter 2022 Financial and Production Results
In the third quarter of 2022, net income was $79.6 million ($0.17 per share). This result includes the following items (net of tax): unrealized mark-to-market losses on foreign exchange and oil hedges of $134.5 million ($0.30 per share), foreign currency translation losses on deferred tax liabilities of $19.6 million ($0.04 per share), non-cash foreign currency translation gains of $7.2 million ($0.02 per share), realized losses on foreign exchange and oil hedges of $6.9 million ($0.02 per share), mark-to-market gains on the Company’s investment portfolio of $3.1 million ($0.01 per share), and various other adjustment losses of $5.1 million ($0.02 per share). The unrealized mark-to-market losses on foreign exchange hedges losses are a result of the rapidly appreciating U.S. dollar relative to the Euro, and Canadian and Australian dollars over the last two weeks of the quarter (for additional details see section on the Company’s financial flexibility below).
Excluding these items would result in adjusted net income of $235.4 million or $0.52 per share for the third quarter of 2022. For the third quarter of 2021, the Company reported net income of $119.0 million ($0.49 per share).
Included in the third quarter of 2022 net income, and not adjusted above are care and maintenance costs net of tax of $5.9 million ($0.01 per share) and a non-cash stock option expense of $3.3 million ($0.01 per share).
In the first nine months of 2022, the Company reported net income of $465.2 million ($1.08 per share). This compares with the first nine months of 2021, when net income was $460.6 million ($1.89 per share).
For financial reporting purposes, the Merger was determined to be a business combination with Agnico Eagle identified as the acquirer. As a result, the purchase consideration was allocated to the identifiable assets and liabilities of Kirkland Lake Gold based on their fair values as of February 8, 2022 (the “Purchase Price Allocation”) and was recorded in the first quarter of 2022. The finalization of the Purchase Price Allocation will take place within twelve months following the acquisition date.
Upon closing of the Merger, under the Purchase Price Allocation, any gold inventory held by Kirkland Lake Gold on February 8, 2022 was revalued at the forecast gold price in the period the inventory was expected to be sold. The revalued inventory subsequently sold during the third quarter of 2022 resulted in additional production costs of approximately $3.1 million ($2.1 million after tax) during the quarter. The revalued inventory subsequently sold during the first nine months of 2022 resulted in additional production costs of approximately $156.0 million ($108.0 million after tax). Given the extraordinary nature of the fair value adjustment on inventory related to the Merger, this non-cash adjustment, which increased the cost of inventory sold during the quarter, was normalized from net income and net income per share and adjusted out of the total cash costs per ounce and AISC in the third quarter of 2022.
The decrease in net income in the third quarter of 2022 compared to the prior-year period is primarily due to unrealized mark-to-market losses on foreign exchange hedges, higher exploration and amortization costs due to the inclusion of the Detour, Fosterville and Macassa mines and higher general and administrative expenses, offset by higher mine operating margins6 (from higher sales volumes following the Merger).
The increase in net income in the first nine months of 2022 compared to the prior-year period is primarily due to higher mine operating margins (from higher sales volumes following the Merger). The overall increase in net income was partially offset by the unrealized mark-to-market losses on foreign exchange hedges, higher exploration and amortization costs due to the inclusion of the Detour, Fosterville and Macassa mines and higher general and administrative costs. In addition, other expenses and care and maintenance costs offset the higher operating margins.
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6 Operating margin is a non-GAAP measure that is not a standardized measure under the financial report framework used to prepare the Company’s financial statements. 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 third quarter of 2022, cash provided by operating activities was $575.4 million ($558.4 million before changes in non-cash components of working capital), compared to the third quarter of 2021 when cash provided by operating activities was $297.2 million ($419.9 million before changes in non-cash components of working capital).
The increase in cash provided by operating activities (before changes in non-cash components of working capital) in the third quarter of 2022, compared to the prior-year period, is primarily due to higher sales volumes following the Merger, partially offset by lower realized metal prices.
In the first nine months of 2022, cash provided by operating activities was $1,716.1 million ($1,630.3 million before changes in non-cash components of working capital), compared to the first nine months of 2021 when cash provided by operating activities was $1,083.2 million ($1,289.9 million before changes in non-cash components of working capital). A non-cash fair value adjustment on inventory related to the Merger of $156.0 million was included in production costs and as a result included in cash provided by operating activities before changes in non-cash components of working capital for the first nine months of 2022. The non-cash fair value adjustment on inventory was then reversed through changes in non-cash components of working capital. Excluding the non-cash fair value adjustment on inventory of $156.0 million, cash provided by operating activities before changes in non-cash components of working capital was $1,786.3 million in the first nine months of 2022.
The increase in cash provided by operating activities in the first nine months of 2022, compared to the prior-year period, is primarily due to higher net income driven by higher sales volumes following the Merger, partially offset by lower realized metal prices. This included non-recurring costs related to the Merger of $35.3 million in transaction costs and $57.0 million in severance costs.
In the third quarter of 2022, the Company’s payable gold production was 816,795 ounces. This compares to quarterly payable gold production of 541,663 ounces in the prior-year period. In the first nine months of 2022, the Company’s gold production was a record 2,335,569 ounces. Including the entire first nine month’s production from the pre-Merger Kirkland Lake Gold mines, total gold production in the first nine months of 2022 was 2,481,294. This compares to payable gold production of 1,584,473 ounces in the first nine months of 2021, which included 24,057 ounces and 348 ounces of pre-commercial production of gold at the Tiriganiaq open pit at Meliadine and Amaruq underground project, respectively.
Gold production in the third quarter of 2022 and the first nine months of 2022, when compared to the prior-year periods, was higher primarily due to the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. This was partially offset by the cessation of gold production in 2022 at Hope Bay following the Company’s decision to dedicate the infrastructure to exploration activities and lower production at the Company’s Pinos Altos mine and the LaRonde complex.
Production costs per ounce in the third quarter of 2022 were $804, compared to $852 in the prior-year period. Total cash costs per ounce in the third quarter of 2022 were $779, compared to $784 in the prior-year period.
Production costs per ounce in the first nine months of 2022 were $846, compared to $837 in the prior-year period. Total cash costs per ounce in the first nine months of 2022 were $769, compared to $755 in the prior-year period. Including the entire first nine month’s production from the pre-Merger Kirkland Lake Gold mines, total cash costs per ounce in the first nine months of 2022 were slightly above the mid-point of 2022 cost guidance.
In the third quarter of 2022, production costs per ounce and total cash costs per ounce decreased when compared to the prior-year period primarily as a result of the combination of operations following the Merger. In the first nine months of 2022, production costs per ounce and total cash costs per ounce increased when compared to the prior-year period primarily due to lower production volumes from the Canadian Malartic, Hope Bay and Pinos Altos mines, partially offset by the contribution of lower cost production (on a per ounce basis) from the Detour Lake, Fosterville and Macassa mines following the Merger. A detailed description of the minesite costs per tonne at each mine is set out below.
AISC per ounce in the third quarter of 2022 were $1,106, compared to $1,059 in the prior-year period. AISC per ounce in the first nine months of 2022 were $1,067, compared to $1,035 in the prior-year period.
AISC per ounce in the third quarter of 2022 and first nine months of 2022 increased when compared to the prior-year periods primarily due to lower by-product metal revenues from lower production volumes and higher sustaining capital expenditures7 from an increase in input costs for fuel and materials.
Update on Key Value Drivers
Activities are progressing well at the Company’s key exploration, development and mine expansion projects. Highlights on the key value drivers (Detour Lake, Odyssey, Kirkland Lake and Hope Bay) are set out below and details on certain mine expansion projects (Kittila shaft, Meliadine Phase 2 and Amaruq underground) are set out in the operational section of this news release.
Detour Lake Mine – Secondary Crusher Pre-Screen Commissioned on Second Mill Circuit; Exploration Drilling in the West Pit Extension Continues to Return Positive Results; Modelling of Underground Mineral Resources Underway
The Company continues to advance multiple initiatives to increase mill throughput from 23 Mtpa in 2020 to 28.0 Mtpa in 2025. The initiatives completed to date include improved fragmentation at the mine, improved primary crusher choke feeding, removal of the daily regulatory mill limit and the completion of the 610 conveyor refeed, bringing the mill throughput to approximately 25.5 Mtpa. In the third quarter of 2022, the Company’s focus was on the installation and commissioning of the screens before the secondary crushers on line two.
Pre-screening before the secondary crushers is expected to help de-bottleneck the grinding circuit and contribute an additional approximately 2.0 Mtpa to the mill throughput. The installation and commissioning of the screen before the secondary crusher on the second mill circuit was completed in August 2022 and resulted in an average daily throughput of 3,515 tonnes per hour (equivalent to 28.0 Mtpa) for the month of September. More time is required to fully optimize the circuit and confirm these initial results. The installation and commissioning of a screen before the secondary crusher on the first mill circuit is expected to be completed in the fourth quarter of 2022.
With positive initial results from the projects completed to date, the Company anticipates that a mill throughput of 28.0 Mtpa could be achieved before 2025 and sees potential to increase mill throughput beyond 28.0 Mtpa. The Company’s future focus will be stabilizing and optimizing the mill circuit processes.
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7 Sustaining capital expenditures is a non-GAAP measure that is not a standardized financial measure under the financial reporting framework used to prepare the Company’s financial statements. For a reconciliation of sustaining capital expenditures to the consolidated statement of cashflows, see “Reconciliation of Non-GAAP Financial Performance Measures” below. See “Note Regarding Certain Measures of Performance”. |
An update on other projects that will contribute to the current site expansion is set-out below.
Exploration at Detour Lake in the third quarter of 2022 was focused on infill drilling under the West Pit and in the West Pit Extension, as well as work on regional targets.
Thirteen drill rigs were active in the third quarter of 2022, completing 18,965 metres of expensed drilling and 54,184 metres of capitalized drilling. In the first nine months of 2022, there have been 31,990 metres of expensed drilling and 150,183 metres of capitalized drilling, putting the Company on track to meet the forecast 234,000 metres of drilling at the Detour Lake mine in 2022.
At the northwestern margin of the West Pit, hole DLM22-473A intersected 2.5 g/t gold over 18.8 metres at 220 metres depth, 1.9 g/t gold over 118.2 metres at 419 metres depth and 0.8 g/t gold over 45.3 metres at 636 metres depth.
In exploration drilling approximately 1,935 metres west of the West Pit, hole DLM22-469 intersected 6.1 g/t gold over 12.2 metres at 918 metres depth in hole DLM22-469, further confirming the down-plunge western extension of the deposit.
Work is ongoing to update the geological model with regards to the underground mineralization, and to determine the amount of infill drilling required to estimate an initial mineral resource.
Odyssey Project – Shaft Sinking Expected to be Initiated in Early 2023; Underground Development on Schedule, with Initial Production Expected in March 2023; Infill Drilling Continues to Return Positive Results at Odyssey South and East Gouldie; Regional Exploration Continues to Test East Gouldie Extension to the West
In the third quarter of 2022, underground development and the critical infrastructure projects for the start-up of production at Odyssey South in March 2023 remained on schedule. Updates on the key activities are set-out below.
Pre-commercial production from the Odyssey South orebody is expected to begin before the end of March 2023.
In the third quarter of 2022, the construction of the headframe was slightly behind schedule due to weather conditions, however all other critical activities to initiate shaft sinking progressed as planned. Shaft sinking is now expected to be initiated in early 2023, with no impact on the overall shaft sinking schedule. Updates on the key projects are set-out below.
Inflationary cost pressures were manageable in the third quarter of 2022, with the overall project remaining on budget. Project costs are being re-evaluated to factor-in the potential impact of sustained cost inflation in 2023.
Exploration drilling by the Partnership in the third quarter of 2022 at the Odyssey project targeted the Odyssey South, Odyssey internal zones and East Gouldie deposits and extensions of East Gouldie towards the west and the Norrie Zone. Ten rigs were active at surface and four rigs were active underground in the third quarter of 2022.
In the Odyssey South deposit, hole UGOD-016-074 intersected 5.5 g/t gold over 11.9 metres at 342 metres depth and hole UGOD-016-075 intersected 5.7 g/t gold over 21.8 metres at 366 metres depth.
At East Gouldie, infill drilling in the core of the deposit continues to return wide, high-grade intersections, with recent results including 4.6 g/t gold over 50.7 metres at 1,537 metres depth in hole MEX21-224WAZ.
Hole MEX22-240, drilled approximately 670 metres west of the East Gouldie mineralized envelope, intersected 4.2 g/t gold over 12.8 metres at 1,331 metres depth in an area approximately 100 metres above the Norrie Zone. This result continues to suggest potential connection of the East Gouldie deposit and the Norrie Zone along strike where additional drilling is currently being performed.
Kirkland Lake Region – Commissioning of Shaft #4 at Macassa Expected to Commence in the Fourth Quarter of 2022; Underground Ramp from Macassa to the AK Deposit Completed; Infill Drilling Ongoing and Progressing as Planned to define AK Mineral Resource Potential by year-end 2022
In the third quarter of 2022, focus remained on the primary infrastructure projects related to Shaft #4 and the ventilation upgrades. The commissioning of Shaft #4 is now expected to commence in December 2022, with completion in the first quarter of 2023. In the third quarter of 2022, the various infrastructure projects were on budget as inflationary cost pressures remained manageable. Updates of the key projects are set out below:
Exploration at the Macassa mine in the third quarter of 2022 targeted multiple underground zones, including Main Break, South Mine Complex, Near Surface Amalgamated and the adjacent AK deposit, with 10 rigs operating underground (including two rigs in the ramp) and one rig at surface. In the third quarter of 2022, 15,129 metres of capitalized drilling (45,654 metres year to date) and 28,218 metres of expensed drilling (60,418 metres year to date) were completed.
Highlights from the drilling included: in the Main Break, hole 58-736 intersected 25.1 g/t gold over 2.6 metres at 1,831 metres depth, 11.4 g/t gold over 2.2 metres at 1,876 metres depth and 10.2 g/t gold over 1.8 metres at 2,305 metres depth; and at SMC East, hole 58-743 intersected 23.9 g/t gold over 2.3 metres at 1,774 metres depth, 5.8 g/t gold over 1.8 metres at 1,773 metres depth and 11.4 g/t gold over 1.8 metres at 1,772 metres depth
At the AK deposit, an assessment is underway to evaluate the deposit as a potential ore source for the Macassa mine. If the evaluations are positive, AK ore could complement the mill feed at Macassa as early as 2024.
The exploration ramp into the AK deposit was completed in the third quarter of 2022, with 290 metres of development in the quarter. The drilling campaign at AK is expected to be completed on schedule during the fourth quarter and includes infill drilling of higher grade portions of the deposit near the proposed bulk sample. Recent results from the infill drilling at AK include a highlight intercept of 30.7 g/t gold over 3.6 metres at 64 metres depth in hole KLAKC22-193.
Hope Bay – Drilling Activities Accelerated at Doris and Drilling at Madrid Commenced in the Third Quarter of 2022
Exploration drilling at Hope Bay totalled 76,200 metres during the first nine months of 2022 and the Company anticipates completing approximately 100,000 metres of drilling in 2022. Most of this drilling was done at Doris, where three drill rigs are currently operating at surface and three rigs operating underground.
Recent results continue to confirm and extend high-grade mineralization at depth, with highlights west of the BTD Connector area of 7.3 g/t gold over 15.8 metres at 459 metres depth in hole HBD22-037 and 19.6 g/t gold over 4.5 metres at 520 metres depth in hole HBD22-038.
The Company’s priority remains the continued extension of the BCO exploration drive that will connect the BTD Extension and BTD Connector zones in the coming years.
At Madrid, drilling continues to ramp-up with two rigs now operating on surface. A second drill contractor has been mobilized to site to increase drilling capacity moving forward.
Farther south in the Hope Bay belt at the Boston deposit, camp refurbishment has been completed and the site is ready for exploration drilling in 2023.
In the meantime, the technical study continued to progress. Infrastructure at the Madrid site was designed and concepts for the processing facility were advanced in the third quarter of 2022.
2022 Synergy and Optimization Benefits Ahead of Initial Estimates and Schedule
In the third quarter of 2022, the Company’s focus shifted from realizing synergies at the corporate level (primarily general and administrative (“G&A”)) to further identifying and delivering potential operational synergies and strategic optimizations resulting from the Merger.
The corporate level G&A synergies were realized at a higher rate and faster than anticipated. The Company identified over $50 million of annual savings from G&A synergies, with the majority of that already realized for 2022. As a result of the success to date, the Company expects corporate G&A synergies to amount to $225 million before tax in the first five years and up to $425 million over the next ten years. Details of the corporate G&A synergies are provided in the Company’s news release dated July 27, 2022.
Operational synergies and optimization are expected to result from the pooling of resources and the leveraging of expertise across the Company’s operations and regions. Operational synergies and optimizations include opportunities in procurement, energy management, maintenance, Detour Lake plan optimization, streamlining doré marketing, reduction in external consultants and the acceleration of the implementation of technology and innovation. To date, benefits of approximately $20 million have been realized, approximately $10 million from procurement, approximately $5 million from the Detour Lake plan optimization, approximately $2 million from the elimination of external consultants and approximately $3 million from various other initiatives.
In the third quarter of 2022, the Company worked to improve the confidence level on the identified opportunities in the coming year and over the long term. The Company maintains its estimate for potential operational synergies in excess of $130 million per year ($440 million over five years, ramping-up to $1.1 billion over 10 years). Details of the operational synergies are provided in the Company’s news release dated July 27, 2022.
The Company continues to advance strategic opportunities to generate new revenues and reduce current and future expenditures as part of its project pipeline, maintaining the original estimate of up to $240 million over five years and $590 million over 10 years. Some examples of strategic optimization are set out below.
Mining the AK deposit from Macassa Infrastructure:
Upper Beaver project update:
Improved Budgeting and Costing:
Strong Financial Flexibility; Focus on Capital Discipline and Returns to Shareholders
On July 24, 2022, the Company repaid $100 million on the 2012 Series A 4.87% senior notes with available cash, reducing the Company’s indebtedness and re-affirming its commitment to maintaining a strong investment grade balance sheet. At September 30, 2022, the Company’s net debt totalled $519.9 million.
In addition to the dividend, the Company continued its focus on shareholder returns through the NCIB, in the third quarter of 2022, under which 999,320 common shares were repurchased for $42.6 million. Under the NCIB, the Company can purchase up to $500 million of its common shares (up to a maximum of 5% of its issued and outstanding common shares) and year-to-date total approximately $65 million has been purchased.
Cash and cash equivalents decreased to $821.8 million at September 30, 2022, from the June 30, 2022 balance of $1,006.9 million, primarily due to the debt repayment, purchases under the NCIB and lower cash flow from operations (lower sales volumes and realized gold prices). As of September 30, 2022, the outstanding balance on the Company’s unsecured revolving bank credit facility was nil, and available liquidity under this facility was approximately $1.2 billion, not including the uncommitted $600 million accordion feature.
In the third quarter of 2022, the Company realized a loss net of tax of approximately $9.4 million on its foreign exchange hedges, partially offset by a realized gain net of tax of approximately $2.5 million on its fuel hedges. Due to the significant strengthening of the US dollar, largely at the end of the third quarter of 2022, the Company recorded unrealized mark-to-market losses on foreign exchange net of tax of approximately $134.5 million arising from its ongoing foreign exchange risk management program. The impact of these derivative products was more than offset by the relatively weaker operating currencies. The Canadian dollar remains the second largest input, after the price of gold, to the Company’s financial results.
Approximately 60% of the Company’s remaining 2022 estimated Canadian dollar exposure is hedged at an average floor price above 1.28 C$/US$. Approximately 37% of the Company’s remaining 2022 estimated Euro exposure is hedged at an average floor price of approximately 1.10 US$/EUR. Approximately 22% of the Company’s remaining 2022 estimated Australian dollar exposure is hedged at an average floor price above 1.45 A$/US$. Approximately 51% of the Company’s remaining 2022 estimated Mexican peso exposure is hedged at an average floor price above 20.35 MXP/US$. The Company’s full year 2022 cost guidance is based on assumed exchange rates of 1.25 C$/US$, 20.00 MXP/US$, 1.20 US$/EUR and 1.32 A$/US$.
The Company has hedged approximately 90% of its remaining diesel exposure in 2022, reducing its exposure to further diesel price volatility. Year to date, the Company has realized approximately $20 million in hedging gains related to fuel. These hedges have partially mitigated the effect of inflationary pressures to date and are expected to provide some protection against inflation going forward.
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 2022 and future guidance.
In order to maintain financial flexibility, and consistent with past practice, the Company now intends to file a new base shelf prospectus in the fourth quarter of 2022. The Company has generally maintained a base shelf prospectus since 2002. The Company has no present intention to offer securities pursuant to the new base shelf prospectus. The notice set out in this paragraph does not constitute an offer of any securities for sale or an offer to sell or the solicitation of an offer to buy any securities.
Dividend Record and Payment Dates for the Third Quarter of 2022
Agnico Eagle’s Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on December 15, 2022 to shareholders of record as of December 1, 2022. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2022 Fiscal Year
Record Date | Payment Date |
December 1, 2022* | December 15, 2022* |
*Declared
Dividend Reinvestment Plan
Please see the following link for information on the Company’s dividend reinvestment plan: Dividend Reinvestment Plan
Capital Expenditures
In the third quarter of 2022, capital expenditures (including sustaining capital expenditures) were $396.5 million and capitalized exploration expenditures were $31.6 million, for a total of $428.1 million. In the first nine months of 2022, capital expenditures (including sustaining capital expenditures) were $980.4 million and capitalized exploration expenditures were $99.3 million, for a total of $1,079.7 million. Capital expenditures were higher than forecast in the third quarter of 2022 primarily due to expenditures that were delayed in the first six months of 2022. In the first nine months of 2022, capital expenditure spending remains slightly behind forecast due to expenditures that were delayed.
Total capital expenditures (excluding capitalized exploration) for 2022 remain estimated to be approximately $1.4 billion.
The following table sets out capital expenditures and capitalized exploration in the third quarter of 2022 and the first nine months of 2022.
Capital Expenditures | |||||
(In thousands of U.S. dollars) | |||||
Capital Expenditures* | Capitalized Exploration | ||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||
September 30, 2022 | September 30, 2022 | September 30, 2022 | September 30, 2022 | ||
Sustaining Capital Expenditures8 | |||||
LaRonde complex | 26,192 | 71,879 | 367 | 1,781 | |
Canadian Malartic mine | 23,199 | 50,279 | — | — | |
Goldex mine | 4,596 | 16,580 | 218 | 1,420 | |
Detour Lake mine | 68,898 | 155,514 | — | — | |
Macassa mine | 7,103 | 19,861 | 113 | 879 | |
Meliadine mine | 16,157 | 39,797 | 1,352 | 2,897 | |
Meadowbank complex | 21,392 | 45,563 | — | — | |
Hope Bay project | (38) | 3,276 | 38 | 328 | |
Fosterville mine | 14,513 | 36,605 | — | 213 | |
Kittila mine | 10,679 | 30,400 | 799 | 3,896 | |
Pinos Altos mine | 5,993 | 17,531 | 144 | 637 | |
La India mine | 5,041 | 7,162 | — | 8 | |
Total Sustaining Capital | $ 203,725 | $ 494,447 | $ 3,031 | $ 12,059 | |
Development Capital Expenditures8 | |||||
LaRonde complex | 19,476 | 53,363 | — | — | |
Canadian Malartic mine | 30,360 | 75,758 | 3,455 | 10,144 | |
Goldex mine | 7,300 | 18,703 | 1,015 | 2,668 | |
Detour Lake mine | 36,863 | 91,472 | 8,125 | 24,776 | |
Macassa mine | 14,682 | 51,666 | 6,054 | 12,511 | |
Meliadine mine | 34,156 | 64,910 | 3,124 | 7,875 | |
Meadowbank complex | 277 | 1,387 | — | — | |
Amaruq underground project | 16,052 | 48,632 | 658 | 1,760 | |
Hope Bay project | 7,495 | 9,463 | (328) | (328) | |
Fosterville mine | 6,510 | 8,258 | 4,707 | 22,712 | |
Kittila mine | 10,789 | 35,078 | 553 | 1,768 | |
Pinos Altos mine | 6,258 | 20,067 | — | — | |
La India mine | 1,471 | 5,791 | — | — | |
Other | 1,107 | 1,453 | 1,156 | 3,333 | |
Total Development Capital | $ 192,796 | $ 486,001 | $ 28,519 | $ 87,219 | |
Total Capital Expenditures | $ 396,521 | $ 980,448 | $ 31,550 | $ 99,278 | |
* Excludes capitalized exploration |
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8 Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial measures under the financial reporting framework used to prepare the Company’s financial statements. 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.” |
2022 Guidance Unchanged
Expected payable gold production in 2022 remains unchanged at between 3.2 and 3.4 million ounces with total cash costs per ounce and AISC per ounce expected to be near the top end of the guided ranges of $725 and $775 and $1,000 and $1,050, respectively, as a result of continued inflationary cost pressures.
Total expected capital expenditures (excluding capitalized exploration) for 2022 remain estimated to be approximately $1.4 billion. Guidance for 2022 includes production, costs and capital for the period commencing January 1, 2022 at the Detour Lake, Macassa and Fosterville mines.
The estimated 2022 depreciation and amortization expense provided on February 23, 2022 considered a preliminary fair value allocation to the Kirkland Lake Gold assets. The 2022 depreciation and amortization expense guidance is now expected to be closer to the bottom end of the range of $1.25 to $1.35 billion for the full year 2022. The finalization of the Purchase Price Allocation will take place within the twelve months following the acquisition date and, as such, the depreciation estimate is subject to change.
Cost Inflation
Overall, inflation on production costs is estimated to be in the range of 5% to 7% for 2022, mainly driven by higher input prices on key consumables (such as fuel, cyanide, steel) which have experienced increases above the 5% to 7% general inflation rate. In the third quarter of 2022, the Company continued to partially offset these costs pressures with solid operational performance, the pooling of resources within the regions in which the Company operates, optimization and cost-saving initiatives, synergies resulting from the Merger and positive foreign exchange impacts. In addition, the Company’s active fuel hedging program has also helped reduce the impact of rising costs.
With the Nunavut sea-lift season complete and key consumables arriving on site, the inventory will provide price stability for any short-term price fluctuations on key consumables until the 2023 sea-lift season.
While the Company believes there are positive signs with respect to the easing of current inflationary pressures, such as below-peak fuel prices and global supply chain relief, the Company expects these pressures could still be challenging in the fourth quarter of 2022 and into 2023. The Company now expects full-year costs to be closer to the top end of the guidance range. The Company’s focus will continue to be on increasing operational efficiencies and cost optimization at all mining operations and managing its currency and diesel price risks by opportunistically adding currency and fuel hedges. Beyond 2022, the Company anticipates that the potential synergies associated with the Merger will help mitigate potential future cost increases.
Demonstrating Strong Environmental, Social and Governance Performance
The Company is committed to providing a safe place to work and to maintaining the highest health and safety standards for its employees. In 2020, Agnico Eagle launched its Towards Zero Accident initiative, a two-pronged approach focused on understanding and improving safety to create an accident-free environment at all its sites. The Company achieved a significant milestone in the third quarter of 2022 by recording the best safety performance in its 65 year history.
By working together with its business partners, communities and other stakeholders, the Company continuously strives to achieve its sustainability goals and further enhance its leadership in ESG. In the third quarter of 2022, these efforts and contributions continued to be recognized by outside organizations, including:
The Company continues to be committed to addressing climate-change and reaching net-zero by 2050. Supporting this commitment, the Board approved adopting an interim target to reduce greenhouse gas emissions by 30% by 2030. In the third quarter of 2022, the corporate and minesite climate change working groups completed climate-change related risks, resilience and adaptation assessments for all of the Company’s operations. With the compilation of these assessments, the Company is establishing an action plan to meet its commitment to a net-zero future. The Company will be releasing a Climate Action report in the fourth quarter of 2022.
Teck and Agnico Eagle Agreement on the San Nicolás Copper-Zinc Project located in Zacatecas, Mexico
On September 16, 2022, the Company and Teck Resources Limited announced that the Company has agreed to subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. a wholly-owned Teck subsidiary which owns the San Nicolás copper-zinc development project located in Zacatecas, Mexico. As a result of the Transaction, Teck and Agnico Eagle will become 50/50 joint venture partners at San Nicolás.
Closing of the Transaction is subject to customary conditions precedent, including receipt of necessary regulatory approvals, and is expected to occur in the first half of 2023. For additional details with respect to the Transaction, please see the Company and Teck’s joint news release dated September 16, 2022.
ABITIBI REGION, QUEBEC
Agnico Eagle is Quebec’s largest gold producer with a 100% interest in the LaRonde complex (which includes the LaRonde and LaRonde Zone 5 (“LZ5”) mines), the Goldex mine and a 50% interest in the Canadian Malartic mine. These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.
LaRonde Complex – Operational Challenges Affect Development and Production in the Third Quarter of 2022
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988. The LZ5 property lies adjacent to and west of the LaRonde mine and previous operators exploited the zone by open pit mining. The LZ5 mine achieved commercial production in June 2018.
LaRonde Complex – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 711 | 737 | ||
Tonnes of ore milled per day | 7,728 | 8,011 | ||
Gold grade (g/t) | 3.83 | 4.71 | ||
Gold production (ounces) | 82,621 | 106,747 | ||
Production costs per tonne (C$) | $ 187 | $ 126 | ||
Minesite costs per tonne (C$)9 | $ 131 | $ 108 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 1,234 | $ 691 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 818 | $ 458 |
Gold production in the third quarter of 2022 decreased when compared to the prior-year period primarily due to lower gold grades and lower processing volumes related to changes in the mining sequence at the LaRonde mine as explained below.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily as a result of the timing of unsold concentrate inventory, higher unit costs for fuel, materials and reagents and lower throughput levels. Production costs per ounce in the third quarter of 2022 increased when compared to the prior-year period primarily as a result of the timing of unsold concentrate inventory, lower gold production and higher unit costs for fuel, materials and reagents.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher unit costs for fuel, materials and reagents and lower throughput levels. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher minesite costs per tonne, lower by-product revenues from lower mill throughput and lower gold production.
___________________ |
9 Minesite costs per tonne is a non-GAAP measure that does not have a standardized meaning under the financial reporting framework used to prepare the Company’s financial statements. For a reconciliation to production costs see “Reconciliation of Non-GAAP Performance Measures” below. See also “Note Regarding Certain Measures of Performance”. |
LaRonde Complex – Operating Statistics | ||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 2,158 | 2,222 | ||
Tonnes of ore milled per day | 7,905 | 8,139 | ||
Gold grade (g/t) | 4.22 | 4.38 | ||
Gold production (ounces) | 276,168 | 297,348 | ||
Production costs per tonne (C$) | $ 128 | $ 119 | ||
Minesite costs per tonne (C$) | $ 125 | $ 110 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 781 | $ 712 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 666 | $ 499 |
Gold production in the first nine months of 2022 decreased when compared to the prior-year period due to lower gold grades and lower mill throughput. The lower mill throughput resulted from lower mine productivity due to slower than expected development which was revised in the second quarter of 2022 and unplanned maintenance to the ore pass and lower mechanical availability from the automated equipment due to supply chain issues.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily as a result of lower throughput levels and higher unit costs for fuel, materials and reagents. Production costs per ounce in the first nine months of 2022 increased when compared to the prior-year period primarily as a result of higher production costs per tonne and lower gold production.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to lower throughput levels and higher unit costs for fuel, materials and reagents. Total cash costs per ounce in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher minesite costs per tonne, lower by-product revenues from lower mill throughput and lower gold production.
Operational Highlights
Project Highlights
Exploration Highlights
Canadian Malartic – Gold Production In-line with Forecast; Underground Development and Surface Construction Activities at Odyssey Remain on Schedule for Pre-Commercial Production in March 2023
In June 2014, Agnico Eagle and Yamana Gold Inc. acquired Osisko Mining Corporation (now Canadian Malartic Corporation) and created the Partnership. The Partnership owns the Canadian Malartic mine in northwestern Quebec and operates it through a joint management committee. Each of Agnico Eagle and Yamana has a direct and indirect 50% ownership interest in the Partnership. All volume data in this section reflect the Company’s 50% interest in the Canadian Malartic mine, except as otherwise indicated. The Odyssey underground project was approved for construction in February 2021.
Canadian Malartic Mine – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) (100%) | 4,968 | 5,828 | ||
Tonnes of ore milled per day (100%) | 54,000 | 63,348 | ||
Gold grade (g/t) | 1.04 | 1.03 | ||
Gold production (ounces) | 75,262 | 86,803 | ||
Production costs per tonne (C$) | $ 30 | $ 27 | ||
Minesite costs per tonne (C$) | $ 33 | $ 27 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 777 | $ 719 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 820 | $ 705 |
Gold production in the third quarter of 2022 decreased when compared to the prior-year period primarily due to lower mill throughput, partially offset by higher metallurgical recovery. As planned, starting in February 2022, the mill throughput levels were reduced to approximately 51,500 tonnes per day (“tpd”) (on a 100% basis) in an effort to optimize the production profile and cash flows during the transition to processing ore from the underground Odyssey project. The mill throughput is forecast to return to full capacity of approximately 60,000 tpd (on a 100% basis) in the second half of 2024.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to inventory adjustments resulting from the consumption of ore stockpile and higher mining and milling costs from lower throughput and higher fuel prices, partially offset by a higher deferred stripping adjustment. Production costs per ounce in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher production costs per tonne, partially offset by the weakening of the Canadian dollar against the U.S. dollar and higher gold grades.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to inventory adjustments resulting from the consumption of ore stockpile and higher mining costs from lower throughput and higher fuel prices, partially offset by a higher deferred stripping adjustment. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher minesite costs per tonne, partially offset by the weakening of the Canadian dollar against the U.S. dollar.
Canadian Malartic Mine – Operating Statistics | ||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) (100%) | 14,590 | 16,730 | ||
Tonnes of ore milled per day (100%) | 53,443 | 61,282 | ||
Gold grade (g/t) | 1.14 | 1.11 | ||
Gold production (ounces) | 242,957 | 268,459 | ||
Production costs per tonne (C$) | $ 30 | $ 27 | ||
Minesite costs per tonne (C$) | $ 34 | $ 28 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 707 | $ 675 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 787 | $ 659 |
Gold production in the first nine months of 2022 decreased when compared to the prior-year period primarily due to the planned reduction of mill throughput to approximately 51,500 tpd (100% basis) starting in February 2022, partially offset by higher metallurgical recovery and higher gold grades.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher mine and mill production costs resulting from lower throughput levels, higher fuel costs and a lower deferred stripping adjustment. Production costs per ounce in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher production costs per tonne, partially offset by higher gold grades.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher mine and mill production costs resulting from lower throughput levels, higher fuel costs and a lower deferred stripping adjustment. Total cash costs per ounce in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher production costs per tonne, partially offset by higher gold grades.
Operational Highlights
Project and Exploration Highlights
Goldex – Increased Productivity from the South Zone Helps Drive Higher Gold Production; Surface Work Now Underway at Akasaba West Project
The 100% owned Goldex mine in northwestern Quebec began production from the M and E zones in September 2013. Commercial production from the Deep 1 Zone commenced on July 1, 2017. The Company approved the development of the Akasaba West project, located less than 30 kilometres from Goldex, in July 2022.
Goldex Mine – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 710 | 695 | ||
Tonnes of ore milled per day | 7,717 | 7,554 | ||
Gold grade (g/t) | 1.67 | 1.40 | ||
Gold production (ounces) | 33,889 | 28,823 | ||
Production costs per tonne (C$) | $ 48 | $ 42 | ||
Minesite costs per tonne (C$) | $ 49 | $ 41 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 776 | $ 806 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 804 | $ 762 |
Gold production in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher gold grades and higher throughput levels resulting from higher productivity from the higher grade South Zone and higher throughput from the Rail-Veyor system.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher mine development and production costs resulting from increased development and production from the South Zone and higher mill costs resulting from higher unit costs for reagents and grinding media. Production costs per ounce in the third quarter of 2022 decreased when compared to the prior-year period primarily due to higher gold grades and the weakening of the Canadian dollar against the U.S. dollar, partially offset by higher production costs per tonne.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period due to the same factors causing a higher production cost per tonne. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to higher minesite costs per tonne, partially offset by higher gold grades resulting in higher gold production.
Goldex Mine – Operating Statistics | ||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 2,192 | 2,145 | ||
Tonnes of ore milled per day | 8,029 | 7,857 | ||
Gold grade (g/t) | 1.68 | 1.57 | ||
Gold production (ounces) | 105,211 | 98,132 | ||
Production costs per tonne (C$) | $ 46 | $ 41 | ||
Minesite costs per tonne (C$) | $ 47 | $ 41 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 751 | $ 723 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 765 | $ 686 |
Gold production in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher gold grades and higher throughput levels. In the first nine months of 2022, the Goldex mine continued to deliver solid performance in line with the production plan and included increased production from the higher grade South Zone and higher throughput from the Rail-Veyor system.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher mine development and production costs resulting from higher ground support costs, increased development and production from the South Zone and higher mill costs resulting from higher unit costs for reagents and grinding media. Production costs per ounce in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher production costs per tonne, partially offset by higher gold grades and the weakening of the Canadian dollar against the U.S. dollar.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to the same factors causing a higher production costs per tonne. Total cash costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to higher minesite costs per tonne, partially offset by higher gold grades resulting in higher gold production.
Operational Highlights
Akasaba West Project
ABITIBI REGION, ONTARIO
Agnico Eagle acquired the Detour Lake and Macassa mines on February 8, 2022 as a result of the Merger with Kirkland Lake Gold. With the inclusion of these two assets in its portfolio, the Company is now Ontario’s largest gold producer. Furthermore, the proximity of these mines to the Company’s operations located in the Abitibi region of Quebec provides operating synergies and allows for the sharing of technical expertise.
Detour Lake – Solid Operational and Cost Performance; Commissioning of Secondary Crusher Screen on Line 2 Resulted in Increased Daily Mill Throughput
The Detour Lake mine is located in northeastern Ontario, approximately 300 kilometres northeast of Timmins and 185 kilometres by road northeast of Cochrane, within the northernmost portion of the Abitibi Greenstone Belt.
In 1987, Placer Dome Inc. began underground gold production at the Detour Lake property and during the initial 12 years of mining (from 1987 to 1999) production was approximately 1.7 million ounces of gold from approximately 14.3 million tonnes grading 3.82 g/t gold. In 2013, Detour Gold Corporation restarted gold production via open pit mining. The Detour Lake mine is now the largest gold producing mine in Canada with the largest gold reserves and substantial growth potential. It has an estimated mine life of approximately 30 years.
Detour Lake – Operating Statistics* | ||||
Three Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 6,505 | 16,294 | ||
Tonnes of ore milled per day | 70,701 | 69,334 | ||
Gold grade (g/t) | 0.91 | 0.98 | ||
Gold production (ounces) | 175,487 | 471,445 | ||
Production costs per tonne (C$) | $ 23 | $ 29 | ||
Minesite costs per tonne (C$) | $ 25 | $ 24 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 648 | $ 787 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 691 | $ 650 | ||
*In the first nine months of 2022, the operating statistics are reported for the period from February 8, 2022 to September 30, 2022. |
In the third quarter of 2022, gold production at the Detour Lake mine was 175,487 ounces, with production costs per tonne of C$23, production costs per ounce of $648, minesite costs per tonne of C$25 and total cash costs per ounce of $691.
For the period from February 8, 2022 to September 30, 2022, gold production at the Detour Lake mine was 471,445 ounces, with production costs per tonne of C$29, production costs per ounce of $787, minesite costs per tonne of C$24 and total cash costs per ounce of $650.
In the first nine months of 2022, the difference between production costs per tonne and minesite costs per tonne and the difference between production costs per ounce and total cash costs per ounce are primarily due to the inventory re-valuation at the forecast gold price in the period the inventory was expected to be sold, which was done as part of the Purchase Price Allocation following the completion of the Merger.
Operational Highlights
Project and Exploration Highlights
Macassa – Sustained Productivity Improvements Drive Strong Operational and Cost Performance; Shaft #4 Project and Ventilation Upgrade on Schedule to Commence Commissioning in Late 2022
The Macassa mine, located in northeastern Ontario, began production in 1933. Operations have been continuous except for a brief period, when they were suspended in 1999 due to low gold prices. Underground mining restarted in 2002 and over the last 10 years production has been predominately from two production areas: the South Mine Complex and the Main Break.
Macassa Mine – Operating Statistics* | ||||
Three Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 75 | 210 | ||
Tonnes of ore milled per day | 814 | 894 | ||
Gold grade (g/t) | 21.89 | 20.77 | ||
Gold production (ounces) | 51,775 | 137,525 | ||
Production costs per tonne (C$) | $ 588 | $ 605 | ||
Minesite costs per tonne (C$) | $ 628 | $ 559 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 648 | $ 719 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 689 | $ 659 | ||
*In the first nine months of 2022, the operating statistics are reported for the period from February 8, 2022 to September 30, 2022. |
In the third quarter of 2022, gold production at the Macassa mine was 51,775 ounces, with production costs per tonne of C$588, production costs per ounce of $648, minesite costs per tonne of C$628 and total cash costs per ounce of $689.
For the period from February 8, 2022 to September 30, 2022, gold production at the Macassa mine was 137,525 ounces, with production costs per tonne of C$605, production costs per ounce of $719, minesite costs per tonne of C$559 and total cash costs per ounce of $659.
In the first nine months of 2022, the difference between production costs per tonne and minesite costs per tonne and the difference between production costs per ounce and total cash costs per ounce are primarily due to the inventory re-valuation at the forecast gold price in the period the inventory was expected to be sold, which was done as part of the Purchase Price Allocation following the completion of the Merger.
Operational Highlights
Project and Exploration Highlights
NUNAVUT
Agnico Eagle considers Nunavut a politically attractive and stable jurisdiction with enormous geological potential. With the Company’s Meliadine mine and Meadowbank complex (including the Amaruq satellite deposit), together with the Hope Bay project and other exploration projects, Nunavut has the potential to be a strategic operating platform for the Company with the ability to generate strong gold production and cash flows over several decades.
In December 2021, as a result of the increase in COVID-19 cases at its Nunavut operations, the Company took the precautionary step to send home the Nunavut based workforce and reduce site activities. All site activities ramped back to normal operating levels from mid-January into February 2022. The return of the Nunavut based workforce started on March 14, 2022, after consultation with the Nunavut Government and other local stakeholders. The reintegration was completed in early April 2022.
Meliadine Mine – Planned Mill Shutdown Affected Gold Production; Solid Mine Operational Performance; Ramping-up Usage of Autonomous Haulage
Located near Rankin Inlet in the Kivalliq District of Nunavut, Canada, the Meliadine project was acquired in July 2010. The Company owns 100% of the 98,222-hectare property. In February 2017, the Company’s Board of Directors approved the construction of the Meliadine project and commercial production was declared on May 14, 2019.
Meliadine Mine – Operating Statistics* | ||||
All metrics exclude pre-commercial production tonnes and ounces | Three Months Ended | Three Months Ended | ||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 401 | 377 | ||
Tonnes of ore milled per day** | 4,359 | 4,572 | ||
Gold grade (g/t) | 7.33 | 7.58 | ||
Gold production (ounces) | 91,201 | 90,143 | ||
Production costs per tonne (C$) | $ 229 | $ 187 | ||
Minesite costs per tonne (C$) | $ 226 | $ 202 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 788 | $ 624 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 777 | $ 634 | ||
*In the third quarter of 2021, the Tiriganiaq open pit had 6,881 ounces of pre-commercial gold production. | ||||
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 82 days in the third quarter of 2021 |
Gold production in the third quarter of 2022 increased when compared to the prior-year period (excluding pre-commercial production). Gold production decreased in the third quarter of 2022 when compared to the prior year period (including pre-commercial production) primarily due to lower throughput levels resulting from lower mill availability and lower gold grades resulting from an increase in tonnage sourced from the open pit.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period due to inventory adjustments resulting from the timing of unsold inventory, higher services costs related to inflationary pressures on transportation and higher mining and general site unit costs resulting from lower throughput levels, partially offset by a higher mining rate resulting in a positive stockpile adjustment. Production costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher production costs per tonne and the timing of unsold inventory.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher services costs related to inflationary pressures on transportation and higher mining and general site unit costs resulting from lower throughput levels, partially offset by a higher mining rate resulting in a positive stockpile adjustment. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher minesite costs per tonne.
Meliadine Mine – Operating Statistics* | ||||
All metrics exclude pre-commercial production tonnes and ounces | Nine Months Ended | Nine Months Ended | ||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 1,282 | 1,039 | ||
Tonnes of ore milled per day** | 4,696 | 4,590 | ||
Gold grade (g/t) | 6.77 | 7.51 | ||
Gold production (ounces) | 269,477 | 265,787 | ||
Production costs per tonne (C$) | $ 235 | $ 220 | ||
Minesite costs per tonne (C$) | $ 234 | $ 214 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 879 | $ 683 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 866 | $ 626 | ||
*In the first nine months of 2021, the Tiriganiaq open pit had 24,057 ounces of pre-commercial gold production. | ||||
**Excluding tonnes milled on a pre-commercial production basis, the mill operated for an equivalent of 226 days in the first nine months of 2021 |
Gold production in the first nine months of 2022 increased when compared to the prior-year period (excluding pre-commercial production). Gold production in the first nine months of 2022 decreased when compared to prior year period (including pre-commercial production) primarily due to lower gold grades resulting from increased ore tonnes sourced from the open pit and the lower grade stockpiles, partially offset by higher throughput levels resulting from the planned expansion of the mill to 4,800 tpd. The COVID-19 pandemic affected the underground mine activities, particularly in January 2022. To compensate for the shortfall in mine production in the first six months of 2022, low-grade stockpile ore was used to feed to the mill.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period due to inventory adjustments resulting from the consumption of the low-grade stockpile, partially offset by higher throughput levels and a higher deferred stripping adjustment. Production costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to lower gold grades and higher production costs per tonne.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile, the timing of unsold concentrate inventory and higher open pit mining costs, partially offset by higher throughput levels and a higher deferred stripping adjustment. Total cash costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to lower gold grades and higher minesite costs per tonne.
Operational Highlights
Projects
Exploration Highlights
Meadowbank Complex – Record Quarterly Gold Production from Higher Throughput and Higher Gold Grades; Four Millionth Gold Ounce Poured; Amaruq Underground Project Completed on Schedule and on Budget with Commercial Production Achieved on August 1, 2022
The 100% owned Meadowbank complex is located approximately 110 kilometres by road north of Baker Lake in the Kivalliq District of Nunavut, Canada. The complex consists of the Meadowbank mine and mill and the Amaruq satellite deposit, which is located 50 kilometres northwest of the Meadowbank mine. The Meadowbank mine achieved commercial production in March 2010, and mining activities at the site were completed by the fourth quarter of 2019.
The Amaruq mining operation uses the infrastructure at the Meadowbank minesite. Additional infrastructure has also been built at the Amaruq site. Amaruq ore is transported using long haul off-road type trucks to the mill at the Meadowbank site for processing. The Amaruq satellite deposit achieved commercial production on September 30, 2019.
Meadowbank Complex – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 1,031 | 971 | ||
Tonnes of ore milled per day | 11,207 | 10,554 | ||
Gold grade (g/t) | 4.11 | 3.13 | ||
Gold production (ounces) | 122,994 | 89,706 | ||
Production costs per tonne (C$) | $ 135 | $ 142 | ||
Minesite costs per tonne (C$) | $ 144 | $ 144 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 894 | $ 1,242 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 930 | $ 1,214 |
In the third quarter of 2022, gold production increased when compared to the prior-year period primarily due to higher throughput resulting from solid operational performance and higher gold grades resulting from a higher than anticipated grade sequence in the Whale Tail and IVR open pits.
Production costs per tonne in the third quarter of 2022 decreased when compared to the prior-year period primarily due to the build-up of the stockpile resulting in a favourable stockpile adjustment and the timing of unsold inventory, partially offset by higher services costs related to inflationary pressures on transportation and a lower deferred stripping adjustment. Production costs per ounce in the third quarter of 2022 decreased when compared to the prior-year period due to higher gold grades and mill throughput levels and the timing of unsold inventory.
Minesite costs per tonne in the third quarter of 2022 were the same when compared to the prior-year period primarily due to inventory adjustments resulting from the build-up of the stockpile and higher throughput levels, partially offset by higher site services costs related to inflationary pressures on transportation and a lower deferred stripping adjustment. Total cash costs per ounce in the third quarter of 2022 decreased when compared to the prior-year period primarily due to higher gold grades and higher mill throughput.
Meadowbank Complex – Operating Statistics | ||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 2,816 | 2,774 | ||
Tonnes of ore milled per day | 10,315 | 10,168 | ||
Gold grade (g/t) | 3.37 | 3.12 | ||
Gold production (ounces) | 279,457 | 255,222 | ||
Production costs per tonne (C$) | $ 141 | $ 134 | ||
Minesite costs per tonne (C$) | $ 147 | $ 137 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 1,124 | $ 1,156 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 1,140 | $ 1,139 |
In the first nine months of 2022, gold production increased when compared to the prior-year period primarily due to higher gold grades and higher tonnage resulting from a strong operating performance and higher gold grades resulting from a higher than anticipated grade sequence in the Whale Tail and IVR open pits.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher site services costs related to inflationary pressures on transportation and the COVID-19 pandemic, partially offset by inventory adjustments resulting from the build-up of stockpile. Production costs per ounce in the first nine months of 2022 decreased when compared to the prior-year period due to higher gold grades and higher mill throughput, partially offset by higher production costs per tonne.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to the factors described above. Total cash costs per ounce in the first nine months of 2022 were essentially the same when compared to the prior-year period as higher gold grades and mill throughput were essentially offset by higher minesite costs per tonne.
Operational Highlights
Underground Project Highlights
Exploration Highlights
Hope Bay Project – Drilling Activities Continued in the Third Quarter of 2022; Larger Production Scenarios Continue to be Evaluated
Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres southwest of Cambridge Bay, the Hope Bay project was acquired in February 2021. The Company owns 100% of the 191,342-hectare property, which includes portions of the Hope Bay and Elu greenstone belts. The 80-kilometre long Hope Bay greenstone belt hosts three gold deposits (Doris, Madrid and Boston) with mineral reserves and mineral resources and over 90 regional exploration targets. At the time the Hope Bay project was acquired, construction at the Doris deposit was complete and commercial production had been achieved in the second quarter of 2017.
On February 18, 2022, the Company announced that it decided to maintain the suspension of production activities at the Doris mine in order to dedicate the infrastructure of the Hope Bay site to exploration activities. An update on exploration carried out in the third quarter of 2022 is presented in the Key Value Drivers section above.
AUSTRALIA
Agnico Eagle acquired the Fosterville mine on February 8, 2022 as a result of the Merger with Kirkland Lake Gold. As the largest gold mine in the state of Victoria, Australia. Fosterville is a 100% owned high-grade underground gold mine, located 20 kilometres from the city of Bendigo. The operation features low-cost gold production, as well as extensive in-mine and district scale exploration potential.
Fosterville – Solid Operational and Cost Performance Continues; Positive Drill Results from the Down-Plunge Extension of the Lower Phoenix/Cardinal Splay
Gold production at the Fosterville mine commenced in 1991 from shallow oxide open pits and heap-leaching operations and was suspended in 2001 subsequent to the depletion of oxide ore. In 2005, gold production restarted as an open pit, sulphide mining operation, with mining activities progressively transitioning to underground. Based on exploration success, in particular the discovery of the high grade Eagle and Swan mineralized zones, the Fosterville mine output increased rapidly year over year from 2016 to 2020. Exploration activities continue to expand its mineral reserves and mineral resources as the deposit remains open at depth in the Harrier, Lower Phoenix and Robbins Hill areas.
Fosterville Mine – Operating Statistics* | ||||
Three Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 172 | 3 | ||
Tonnes of ore milled per day | 1,868 | 1,640 | ||
Gold grade (g/t) | 15.11 | 20.46 | ||
Gold production (ounces) | 81,801 | 249,693 | ||
Production costs per tonne (A$) | $ 306 | $ 627 | ||
Minesite costs per tonne (A$) | $ 305 | $ 340 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 418 | $ 683 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 435 | $ 365 | ||
*In the first nine months of 2022, the operating statistics are reported for the period from February 8, 2022 to September 30, 2022. |
In the third quarter of 2022, gold production at the Fosterville mine was 81,801 ounces, with production costs per tonne of A$306, production costs per ounce of $418, minesite costs per tonne of A$305 and total cash costs per ounce of $435.
For the period from February 8, 2022 to September 30, 2022, gold production at the Fosterville mine was 249,693 ounces, with production costs per tonne of A$628, production costs per ounce of $683, minesite costs per tonne of A$340 and total cash costs per ounce of $365.
In the first nine months of 2022, the difference between production costs per tonne and minesite costs per tonne and the difference between production costs per ounce and total cash costs per ounce are primarily due to the inventory re-valuation at the forecasted gold price in the period the inventory was expected to be sold, which was done as part of the Purchase Price Allocation following the completion of the Merger.
Operational Highlights
Project Highlights
Exploration Highlights
FINLAND
Agnico Eagle’s Kittila mine in Finland is the largest primary gold producer in Europe. The expansion of the Kittila mill to 2.0 million tonnes per year was completed in the fourth quarter of 2020. An underground shaft is under construction and is expected to be commissioned in early 2023. Exploration activities continue to expand the mineral reserves and mineral resources at the Kittila mine. Near mine exploration remains the main focus as the deposit remains open at depth and laterally.
Kittila – Strong Mine Performance, Mill Throughput Affected by Autoclave Availability; Shaft Sinking Completed with Commissioning Expected to Start in the Fourth Quarter of 2022
The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.
Kittila Mine – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 487 | 549 | ||
Tonnes of ore milled per day | 5,293 | 5,967 | ||
Gold grade (g/t) | 4.56 | 4.03 | ||
Gold production (ounces) | 61,901 | 62,089 | ||
Production costs per tonne (EUR) | € 104 | € 79 | ||
Minesite costs per tonne (EUR) | € 100 | € 79 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 834 | $ 824 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 843 | $ 826 |
Gold production in the third quarter of 2022 was essentially unchanged when compared to the prior-year period as lower mill throughput was offset by higher gold grades as expected by the mining sequence. In the third quarter of 2022, the mill throughput was affected by higher than normal sulphur content in the ore, a temporary failure of the mill feed conveyor and scale build-up in the autoclave.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher mine and mill production costs resulting from higher unit costs for fuel, power, ground support and reagents, lower throughput levels and the timing of unsold inventory, partially offset by inventory adjustments resulting from the build-up of the stockpile. Production costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to higher production costs per tonne, partially offset by the weakening of the Euro against the U.S. dollar and higher gold grades.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher mine and mill production costs resulting from higher unit costs for fuel, power, ground support and reagents, and lower throughput levels, partially offset by inventory adjustments resulting from the build-up of the stockpile. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to higher minesite costs per tonne, partially offset by the weakening of the Euro against the U.S. dollar and higher gold grades.
Kittila Mine – Operating Statistics |
||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore milled (thousands of tonnes) | 1,504 | 1,526 | ||
Tonnes of ore milled per day | 5,509 | 5,590 | ||
Gold grade (g/t) | 4.19 | 4.12 | ||
Gold production (ounces) | 172,223 | 176,068 | ||
Production costs per tonne (EUR) | € 96 | € 81 | ||
Minesite costs per tonne (EUR) | € 92 | € 81 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 896 | $ 839 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 889 | $ 843 |
Gold production in the first nine months of 2022 decreased when compared to the prior-year period primarily due to lower metallurgical recoveries, resulting from high sulphur content in the feed and scale build-up in the autoclave, and lower throughput levels, partially offset by higher gold grades as per the mining sequence.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher mine and mill production costs resulting from higher unit costs for fuel, power, ground support and reagents, lower throughput levels and the timing of unsold inventory, partially offset by inventory adjustments resulting from the build-up of the stockpile. Production costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to higher production costs per tonne and the timing of unsold inventory, partially offset by the weakening of the Euro against the U.S. dollar and higher gold grades.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher mine and mill production costs resulting from higher unit costs for fuel, power, ground support and reagents, and lower throughput levels, partially offset by inventory adjustments resulting from the build-up of the stockpile. Total cash costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to higher production costs per tonne, partially offset by the weakening of the Euro against the U.S. dollar.
Operational Highlights
Permitting
Project Highlights
Exploration Highlights
MEXICO
Agnico Eagle’s Mexican operations have been a solid source of precious metals production (gold and silver) with solid free cash flow generation since 2009.
Pinos Altos – Backlog in Development Continued to Affect Stope Availability and Gold Production; Open Pit Production from Reyna de Plata Ramping-up
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009.
Pinos Altos Mine – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore processed (thousands of tonnes) | 378 | 444 | ||
Tonnes of ore processed per day | 4,109 | 4,826 | ||
Gold grade (g/t) | 1.98 | 2.440 | ||
Gold production (ounces) | 23,041 | 32,402 | ||
Production costs per tonne | $ 91 | $ 84 | ||
Minesite costs per tonne | $ 92 | $ 78 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 1,498 | $ 1,156 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 1,295 | $ 854 |
Gold production in the third quarter of 2022 decreased when compared to the prior-year period primarily due to lower gold grades resulting from increased sourcing from the lower grade Reyna de Plata open pit and lower throughput levels resulting from lower underground productivity related to lower stope availability at the Santo Niño and Cerro Colorado zones.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to lower throughput levels, partially offset by the timing of unsold inventory. Production costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher production costs per tonne, partially offset by the timing of unsold inventory.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to lower throughput levels. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to lower gold grades, higher minesite costs per tonne and lower by-product revenues from lower silver sales.
Pinos Altos Mine – Operating Statistics | ||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore processed (thousands of tonnes) | 1,128 | 1,458 | ||
Tonnes of ore processed per day | 4,132 | 5,341 | ||
Gold grade (g/t) | 2.05 | 2.1 | ||
Gold production (ounces) | 71,231 | 94,191 | ||
Production costs per tonne | $ 95 | $ 75 | ||
Minesite costs per tonne | $ 93 | $ 72 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 1,501 | $ 1,155 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 1,247 | $ 847 |
Gold production in the first nine months of 2022 decreased when compared to the prior-year period primarily due to lower throughput levels resulting from lower underground productivity related to the higher rehabilitation requirements at the Santo Niño and Cerro Colorado zones and lower gold grades resulting from the mining sequence, partially offset by higher metallurgical recoveries.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to lower throughput levels, higher mining costs resulting from higher ground support requirements and higher processing costs related to higher unit prices for reagents and grinding media, partially offset by lower open pit costs. Production costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to higher production costs per tonne and lower gold grades, partially offset by the timing of inventory sales.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to reasons described above. Total cash costs per ounce in the first nine months of 2022 increased when compared to the prior-year period due to higher minesite costs per tonne, lower by-product revenues from lower silver sales and lower gold grades.
Operational Highlights
Project Highlights
Exploration Highlights
La India – Operational Performance Affected by Heavy Rains; Ore Production Transitioned to the La India and El Realito Pits as the Main Zone Pit Depleted
The 100% owned La India mine in Sonora, Mexico, located approximately 70 kilometres northwest of the Company’s Pinos Altos mine, achieved commercial production in February 2014.
La India Mine – Operating Statistics | ||||
Three Months Ended | Three Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore processed (thousands of tonnes) | 1,045 | 1,233 | ||
Tonnes of ore processed per day | 11,359 | 13,402 | ||
Gold grade (g/t) | 0.72 | 0.62 | ||
Gold production (ounces) | 16,285 | 17,124 | ||
Production costs per tonne | $ 19 | $ 13 | ||
Minesite costs per tonne | $ 19 | $ 13 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 1,246 | $ 931 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 1,196 | $ 971 |
Gold production in the third quarter of 2022 was essentially unchanged when compared to the prior-year period as the fewer ore tonnes placed on the heap leach were essentially offset by higher gold grades as the mining transitioned from the Main Zone pit to the El Realito and La India pits. In the third quarter of 2022, mine production and ore tonnes placed on the heap leach were affected by heavy rains that resulted in lower mine productivity.
Production costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to higher open pit production costs resulting from lower productivity, higher heap leach production costs resulting from lower tonnes placed on the heap leach and higher cement and cyanide consumption related to the high clay content of the ore, partially offset by higher deferred costs resulting from a higher stripping ratio as the mine transitioned from the Main Zone pit to the La India and El Realito pits. Production costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to higher production costs per tonne, partially offset by higher gold grades.
Minesite costs per tonne in the third quarter of 2022 increased when compared to the prior-year period primarily due to the reasons described above. Total cash costs per ounce in the third quarter of 2022 increased when compared to the prior-year period due to higher mine site costs, partially offset by higher gold grades.
La India Mine – Operating Statistics | ||||
Nine Months Ended | Nine Months Ended | |||
September 30, 2022 | September 30, 2021 | |||
Tonnes of ore processed (thousands of tonnes) | 3,964 | 4,620 | ||
Tonnes of ore processed per day | 14,520 | 16,923 | ||
Gold grade (g/t) | 0.59 | 0.49 | ||
Gold production (ounces) | 58,003 | 38,869 | ||
Production costs per tonne | $ 14 | $ 8 | ||
Minesite costs per tonne | $ 14 | $ 9 | ||
Production costs per ounce of gold produced ($ per ounce) | $ 956 | $ 992 | ||
Total cash costs per ounce of gold produced ($ per ounce) | $ 966 | $ 1,001 |
Gold production in the first nine months of 2022 increased when compared to the prior-year period primarily due to higher heap leach recovery and higher gold grades, partially offset by fewer tonnes placed on the heap leach due to heavy rains and low mine productivity in the third quarter of 2022. In the first nine months of 2022 the heap leach operated at normal levels, while in the prior-year period, irrigation of the heap leach was significantly reduced from March to June 2021 due to low local water availability, affecting heap leach recovery.
Production costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to inventory adjustments and higher heap leach and open pit production costs in the third quarter of 2022. Production costs per ounce in the first nine months of 2022 decreased when compared to the prior-year period due to higher gold grades, partially offset by higher production costs per tonne.
Minesite costs per tonne in the first nine months of 2022 increased when compared to the prior-year period primarily due to reasons described above. Total cash costs per ounce in the first nine months of 2022 decreased when compared to the prior-year period due to higher gold production and higher by-product revenues from higher silver sales, partially offset by higher minesite costs per tonne.
Operational Highlights
Project 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 and Colombia. 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 LaRonde Complex, Odyssey Project, Detour Lake, Macassa and AK, Meliadine, Amaruq, Hope Bay, Fosterville, Kittila and Pinos Altos
LaRonde mine at LaRonde complex
Drill hole | From (metres) |
To
(metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade (g/t) (uncapped) |
Silver
grade (g/t) |
Copper grade (%) |
Zinc grade (%) |
LR-317-011 | 553.6 | 575.7 | 3410 | 15.6 | 9.5 | 22 | 0.7 | 0 |
**Results from the LaRonde mine’s Zone 20N use a capping factor of 30 g/t gold and 1,000 g/t silver. The copper and zinc values in this table are uncapped. |
Odyssey South Zone and East Gouldie deposit at Canadian Malartic
Zone | Drill hole | From (metres) |
To (metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade (g/t) (uncapped) |
Gold grade (g/t) (capped)* |
Odyssey South | UGOD-016-074 | 263 | 275 | 342 | 11.9 | 8.3 | 5.5 |
Odyssey South | UGOD-016-075 | 262.1 | 285.1 | 367 | 21.8 | 6.8 | 5.7 |
East Gouldie | MEX21-224WAZ | 1735 | 1788.5 | 1537 | 53.5 | 4.6 | 4.6 |
W of East Gouldie | MEX22-240 | 1556 | 1570.2 | 1331 | 12.8 | 4.2 | 4.2 |
* Results from the Odyssey and the East Gouldie deposit use a capping factor of 20 g/t gold. |
West Pit and West Pit Extension zones at Detour Lake
Zone | Drill hole | From
(metres) |
To
(metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade (g/t) (uncapped)* |
West Pit | DLM22-473A | 247.1 | 269 | 220 | 18.8 | 2.5 |
447.8 | 577 | 419 | 118.2 | 1.9 | ||
790 | 838 | 636 | 45.3 | 0.8 | ||
West Pit Extension | DLM22-469 | 1042 | 1056 | 918 | 12.2 | 6.1 |
*Results from Detour Lake are uncapped. |
Macassa and AK deposit
Zone | Drill hole | From (metres) |
To
(metres) |
Depth of midpoint below surface |
Estimated
true width (metres) |
Gold grade
(g/t) (uncapped) |
Gold grade (g/t) (capped)* |
Macassa – Main Break | 58-736 | 0.3 | 2.9 | 1831 | 2.6 | 25.1 | 25.1 |
45.3 | 47.5 | 1876 | 2.2 | 11.4 | 11.4 | ||
475.4 | 477.4 | 2305 | 1.8 | 10.2 | 10.2 | ||
Macassa – SMC East | 53-743 | 235.4 | 237.9 | 1774 | 2.3 | 246.5 | 23.9 |
239.8 | 241.8 | 1773 | 1.8 | 5.8 | 5.8 | ||
243.3 | 245.3 | 1772 | 1.8 | 11.4 | 11.4 | ||
AK deposit | KLAKC22-193 | 99.4 | 104.6 | 64 | 3.6 | 30.7 | 30.7 |
* Results from the 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. |
Tiriganiaq, Wesmeg, Normeg 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)*
|
ML425-9732-D9 | Tiriganiaq / 1000 | 121.5 | 125.7 | 124 | 4.2 | 9.7 | 9.7 |
ML450-9290-D5 | Wesmeg / 650 | 158.0 | 161.4 | 160 | 2.6 | 8.7 | 8.7 |
ML375-9664-U4 | Normeg / 903 | 121.5 | 148.0 | 137 | 18.3 | 5.1 | 5.1 |
M22-3436 | F-Zone / 4120 | 441.0 | 447.0 | 444 | 5.4 | 8.1 | 6.8 |
*Results from Meliadine use the following capping factors: 250 g/t gold for Tiriganiaq Lode 1000; 40 g/t gold for iron formations at Wesmeg; 120 g/t for mafic volcanics at Normeg; and 25 g/t for iron formations at F-Zone. |
IVR and Whale Tail deposits at Amaruq
Drill hole | 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)* |
AMQ22-2813A | IVR | 826.2 | 831.3 | 722 | 4.8 | 10.6 | 9.5 |
852.7 | 861.0 | 747 | 7.2 | 7.1 | 7.1 | ||
AMQ22-2852 | WT | 976.8 | 991.8 | 848 | 10.8 | 9.1 | 9.1 |
*Results from Amaruq use capping factors that range from 10 g/t to 100 g/t gold depending on the zone. |
Doris deposit 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) |
Gold grade (g/t) (capped)* |
HBD-22-307 | Doris / Connector | 613.2 | 629.0 | 459 | 15.8 | 7.7 | 7.3 |
HBD-22-308 | Doris / Connector | 87.5 | 90.5 | 151 | 3.0 | 12.9 | 12.9 |
*Results from the Doris deposits at Hope Bay use a capping factor of 50 g/t gold. |
Fosterville
Drill hole | Zone | From (metres) |
To
(metres) |
Depth of midpoint below surface (metres) |
Estimated
true width |
Gold grade (g/t) (uncapped)* |
UDH4372A† | Cardinal | 306.0 | 307.5 | 1,716 | 1.4 | 226.2 |
UDH4413† | Cardinal | 280.4 | 281.9 | 1,682 | 1.1 | 365.5 |
UDH4415 | Cardinal | 285.6 | 288.9 | 1,682 | 2.9 | 168.6 |
UDH4372 | Lower Phoenix | 357.4 | 382.7 | 1,777 | 21.9 | 5.5 |
including | 377.6 | 382.7 | 1,787 | 4.4 | 14.4 | |
UDH4518 | Lower Phoenix | 412.6 | 424.7 | 1,829 | 10.6 | 14.6 |
including | 416.9 | 421.4 | 1,830 | 3.8 | 27.6 | |
UDH4446†† | Hoffman | 177.1 | 179.3 | 661 | 1.8 | 58.0 |
UDR020 | Curie | 1,189.1 | 1,193.5 | 1,323 | 3.8 | 5.6 |
*Results from the Fosterville mine are uncapped. | ||||||
† Intercept previously reported on August 11, 2022 as occurring in the Lower Phoenix zone, and now attributed to the Cardinal Fault, a hanging wall splay of the Lower Phoenix mineralization. | ||||||
†† Intercept previously reported on August 11, 2022 in the Curie zone, and now attributed to the Hoffman Fault, a hanging wall splay of the Curie Fault. |
Main and Sisar zones in the Roura area at Kittila
Drill hole | Zone | From
(metres) |
To
(metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade (g/t) (uncapped)* |
ROU22-608 | Sisar Central | 202.6 | 216.0 | 1,106 | 10.2 | 13.2 |
RUG22-503 | Main Roura | 181.0 | 195.0 | 1,087 | 10.3 | 9.3 |
Sisar Central | 238.9 | 248.0 | 1,107 | 6.9 | 7.9 | |
*Results from the Kittila mine are uncapped. |
Cubiro deposit and Pinos Altos Deep project at Pinos Altos
Drill hole | From (m) |
To
(m) |
Depth of midpoint below surface (m) |
Estimated true width (m) |
Gold grade (g/t) (uncapped) |
Gold grade (g/t) (capped) |
Silver grade (g/t) (uncapped) |
Silver grade (g/t) (capped) |
UG22-283* | 155.4 | 167.2 | 649 | 11.6 | 3.7 | 3.1 | 301 | 122 |
including | 155.4 | 161.3 | 648 | 5.8 | 5.4 | 4.1 | 301 | 122 |
CBUG22-180 | 178 | 190 | 153 | 9.2 | 3.3 | 3.3 | 17 | 17 |
*Previously reported August 11, 2022. | ||||||||
**Results from the Pinos Altos Deep project and the Cubiro deposit at Pinos Altos mine use a capping factor of 10 g/t gold and 200 g/t silver. |
EXPLORATION DRILL COLLAR COORDINATES
Drill hole | UTM East* | UTM North* | Elevation (metres above sea level) |
Azimuth (degrees) |
Dip
(degrees) |
Length (metres) |
LaRonde complex | ||||||
LR-317-011 | 690147 | 5347040 | -2,792 | 203 | -31 | 620 |
Canadian Malartic | ||||||
UGOD-016-074 | 717456 | 5334021 | 105 | 355 | -34 | 342 |
UGOD-016-075 | 718456 | 5334021 | 105 | 355 | -39 | 350 |
MEX21-224WAZ | 717441 | 5334731 | 309 | 185 | -72 | 1891 |
MEX22-240 | 716874 | 5334696 | 316 | 201 | -71 | 1728 |
Detour Lake | ||||||
DLM22-473A | 587882 | 5541782 | 286 | 175 | -59 | 1,056 |
DLM22-469 | 585971 | 5542326 | 298 | 192 | -65 | 1,278 |
Macassa and AK Deposit | ||||||
58-736 | 569704 | 5332041 | -1491 | 352 | -80 | 625 |
53-743 | 569792 | 5332067 | -1502 | 178 | 15 | 335 |
KLAKC22-193 | 570139 | 5331129 | 338 | 354 | 45 | 135 |
Meliadine | ||||||
ML425-9732-D9 | 539711 | 6988688 | -364 | 190 | -36 | 168 |
ML450-9290-D5 | 539291 | 6988466 | -371 | 139 | -55 | 189 |
ML375-9664-U4 | 539664 | 6988397 | -278 | 189 | 14 | 251 |
M22-3436 | 542620 | 6986690 | 64 | 204 | -72 | 540 |
Meadowbank complex | ||||||
AMQ22-2813A | 607996 | 7256274 | 195 | 298 | -74 | 930 |
AMQ22-2852 | 606165 | 7255744 | 181 | 143 | -73 | 1,095 |
Hope Bay | ||||||
HBD-22-037 | 433365 | 7559593 | 122 | 102 | -66 | 690 |
HBD-22-038 | 433221 | 7559271 | 58 | 60 | -65 | 843 |
Fosterville | ||||||
UDH4372A | 1588.7 | 5256.7 | 3740 | 122 | -75 | 316 |
UDH4413 | 1585.8 | 5312.2 | 3748 | 108.5 | -75 | 345 |
UDH4415 | 1585.6 | 5312.1 | 3748 | 126 | -70 | 363 |
UDH4372 | 1588.7 | 5256.7 | 3740 | 122 | -75 | 395 |
UDH4418 | 1584.1 | 5311.7 | 3748 | 167 | -84 | 524 |
UDH4446 | 2898.9 | 12447.4 | 4521 | 60.5 | -10 | 201 |
UDR020 | 2569.3 | 10198.8 | 4850 | 102 | -80 | 1488 |
Kittila | ||||||
ROU22-608 | 2558712 | 7537566 | -790 | 76 | -31 | 321 |
RUG22-503 | 2558712 | 7537567 | -790 | 67 | -25 | 305 |
Pinos Altos | ||||||
UG22-283 | 763490 | 3130639 | 1,650 | 214 | -34 | 168 |
CBUG22-179 | 758045 | 3136877 | 1,269 | 230 | 41 | 216 |
* Coordinate Systems: NAD 83 UTM Zone 17N for LaRonde and Canadian Malartic; NAD 1983 UTM Zone 17N for Detour Lake, Macassa and Amalgamated Kirkland; NAD 1983 UTM Zone 14N for Meliadine and Meadowbank; NAD 1983 UTM Zone 13N for Hope Bay; Mine grid for Fosterville, which is located in MGA94 Zone 55; Finnish Coordinate System KKJ Zone 2 for Kittila; UTM NAD 27 for Pinos Altos. |
APPENDIX – FINANCIALS
AGNICO EAGLE MINES LIMITED | |||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||||||
(thousands of United States dollars, except where noted) | |||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||
2022 | 2021 | 2022 | 2021 | ||||
Operating margin(i): | |||||||
Revenues from mining operations | $ 1,449,697 | $ 983,818 | $ 4,356,443 | $ 2,918,094 | |||
Production costs | 657,073 | 455,627 | 1,976,444 | 1,306,053 | |||
Total operating margin(i) | 792,624 | 528,191 | 2,379,999 | 1,612,041 | |||
Operating margin(i) by mine: | |||||||
Quebec | |||||||
LaRonde mine | 77,180 | 125,770 | 271,621 | 335,115 | |||
LaRonde Zone 5 mine | 20,137 | 19,449 | 44,659 | 47,299 | |||
Canadian Malartic mine(ii) | 72,905 | 93,439 | 256,668 | 306,766 | |||
Goldex mine | 32,375 | 29,421 | 111,149 | 106,041 | |||
Ontario | |||||||
Detour Lake mine | 170,834 | — | 513,733 | — | |||
Macassa mine | 54,294 | — | 153,227 | — | |||
Nunavut | |||||||
Meliadine mine | 83,469 | 90,884 | 264,488 | 312,032 | |||
Meadowbank complex | 97,092 | 52,087 | 159,938 | 158,100 | |||
Hope Bay mine | — | 11,633 | 144 | 37,259 | |||
Australia | |||||||
Fosterville mine | 103,457 | — | 335,755 | — | |||
Europe | |||||||
Kittila mine | 58,762 | 57,362 | 172,484 | 167,503 | |||
Mexico | |||||||
Pinos Altos mine | 11,030 | 31,971 | 41,948 | 90,302 | |||
Creston Mascota mine | 487 | 4,186 | 2,306 | 16,991 | |||
La India mine | 10,602 | 11,989 | 51,879 | 34,633 | |||
Total operating margin(i) | 792,624 | 528,191 | 2,379,999 | 1,612,041 | |||
Amortization of property, plant and mine development | 273,191 | 191,771 | 824,991 | 546,510 | |||
Exploration, corporate and other | 293,149 | 129,148 | 718,467 | 322,029 | |||
Income before income and mining taxes | 226,284 | 207,272 | 836,541 | 743,502 | |||
Income and mining taxes expense | 146,641 | 88,315 | 371,301 | 282,915 | |||
Net income for the period | $ 79,643 | $ 118,957 | $ 465,240 | $ 460,587 | |||
Net income per share — basic | $ 0.17 | $ 0.49 | $ 1.08 | $ 1.89 | |||
Net income per share — diluted | $ 0.17 | $ 0.49 | $ 1.08 | $ 1.88 | |||
Cash flows: | |||||||
Cash provided by operating activities | $ 575,438 | $ 297,176 | $ 1,716,136 | $ 1,083,194 | |||
Cash used in investing activities | $ (439,296) | $ (268,213) | $ (297,773) | $ (1,016,404) | |||
Cash used in financing activities | $ (317,985) | $ (62,404) | $ (780,150) | $ (226,699) | |||
Realized prices: | |||||||
Gold (per ounce) | $ 1,726 | $ 1,787 | $ 1,821 | $ 1,794 | |||
Silver (per ounce) | $ 18.67 | $ 23.54 | $ 21.68 | $ 25.63 | |||
Zinc (per tonne) | $ 3,435 | $ 2,967 | $ 3,623 | $ 2,852 | |||
Copper (per tonne) | $ 5,674 | $ 9,031 | $ 8,438 | $ 9,623 |
AGNICO EAGLE MINES LIMITED | ||||||||||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | ||||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Payable production(iii): | ||||||||||||||
Gold (ounces): | ||||||||||||||
Quebec | ||||||||||||||
LaRonde mine | 63,573 | 88,795 | 221,858 | 244,865 | ||||||||||
LaRonde Zone 5 mine | 19,048 | 17,952 | 54,310 | 52,483 | ||||||||||
Canadian Malartic mine(ii) | 75,262 | 86,803 | 242,957 | 268,459 | ||||||||||
Goldex mine | 33,889 | 28,823 | 105,211 | 98,132 | ||||||||||
Ontario | ||||||||||||||
Detour Lake mine | 175,487 | — | 471,445 | — | ||||||||||
Macassa mine | 51,775 | — | 137,525 | — | ||||||||||
Nunavut | ||||||||||||||
Meliadine mine | 91,201 | 97,024 | 269,477 | 289,844 | ||||||||||
Meadowbank complex | 122,994 | 89,706 | 279,457 | 255,570 | ||||||||||
Hope Bay mine | — | 17,957 | — | 55,524 | ||||||||||
Australia | ||||||||||||||
Fosterville mine | 81,801 | — | 249,693 | — | ||||||||||
Europe | ||||||||||||||
Kittila mine | 61,901 | 62,089 | 172,223 | 176,068 | ||||||||||
Mexico | ||||||||||||||
Pinos Altos mine | 23,041 | 32,402 | 71,231 | 94,191 | ||||||||||
Creston Mascota mine | 538 | 2,988 | 2,179 | 10,468 | ||||||||||
La India mine | 16,285 | 17,124 | 58,003 | 38,869 | ||||||||||
Total gold (ounces) | 816,795 | 541,663 | 2,335,569 | 1,584,473 | ||||||||||
Silver (thousands of ounces): | ||||||||||||||
Quebec | ||||||||||||||
LaRonde mine | 147 | 171 | 467 | 573 | ||||||||||
LaRonde Zone 5 mine | 2 | 3 | 6 | 9 | ||||||||||
Canadian Malartic mine(ii) | 57 | 70 | 188 | 221 | ||||||||||
Goldex mine | 1 | — | 2 | 1 | ||||||||||
Ontario | ||||||||||||||
Detour Lake mine | 2 | — | 93 | — | ||||||||||
Macassa mine | 4 | — | 12 | — | ||||||||||
Nunavut | ||||||||||||||
Meliadine mine | 8 | 7 | 27 | 22 | ||||||||||
Meadowbank complex | 30 | 25 | 75 | 72 | ||||||||||
Hope Bay mine | — | — | — | 2 | ||||||||||
Australia | ||||||||||||||
Fosterville mine | 3 | — | 26 | — | ||||||||||
Europe | ||||||||||||||
Kittila mine | 4 | 3 | 10 | 8 | ||||||||||
Mexico | ||||||||||||||
Pinos Altos mine | 280 | 287 | 772 | 967 | ||||||||||
Creston Mascota mine | — | 22 | 6 | 90 | ||||||||||
La India mine | 15 | 6 | 66 | 29 | ||||||||||
Total silver (thousands of ounces) | 553 | 594 | 1,750 | 1,994 | ||||||||||
Zinc (tonnes) | 2,108 | 2,826 | 5,745 | 7,429 | ||||||||||
Copper (tonnes) | 653 | 825 | 2,200 | 2,356 | ||||||||||
AGNICO EAGLE MINES LIMITED |
||||||||||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | ||||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Payable metal sold(iv): | ||||||||||||||
Gold (ounces): | ||||||||||||||
Quebec | ||||||||||||||
LaRonde mine | 89,667 | 95,947 | 221,930 | 258,076 | ||||||||||
LaRonde Zone 5 mine | 22,304 | 19,256 | 53,437 | 49,738 | ||||||||||
Canadian Malartic mine(ii) | 75,067 | 81,511 | 232,495 | 254,439 | ||||||||||
Goldex mine | 34,019 | 29,534 | 104,584 | 98,885 | ||||||||||
Ontario | ||||||||||||||
Detour Lake mine | 164,300 | — | 484,654 | — | ||||||||||
Macassa mine | 50,739 | — | 138,319 | — | ||||||||||
Nunavut | ||||||||||||||
Meliadine mine | 89,652 | 82,005 | 274,778 | 274,517 | ||||||||||
Meadowbank complex | 119,531 | 91,474 | 262,023 | 251,670 | ||||||||||
Hope Bay mine | — | 19,230 | 98 | 57,182 | ||||||||||
Australia | ||||||||||||||
Fosterville mine | 79,458 | — | 274,585 | — | ||||||||||
Europe | ||||||||||||||
Kittila mine | 63,813 | 60,820 | 179,806 | 175,207 | ||||||||||
Mexico | ||||||||||||||
Pinos Altos mine | 23,436 | 34,920 | 72,953 | 97,205 | ||||||||||
Creston Mascota mine | 650 | 3,065 | 2,104 | 11,299 | ||||||||||
La India mine | 17,610 | 15,675 | 57,925 | 40,248 | ||||||||||
Total gold (ounces) | 830,246 | 533,437 | 2,359,691 | 1,568,466 | ||||||||||
Silver (thousands of ounces): | ||||||||||||||
Quebec | ||||||||||||||
LaRonde mine | 150 | 176 | 475 | 568 | ||||||||||
LaRonde Zone 5 mine | 2 | 2 | 7 | 8 | ||||||||||
Canadian Malartic mine(ii) | 61 | 66 | 184 | 201 | ||||||||||
Goldex mine | — | — | 1 | 1 | ||||||||||
Ontario | ||||||||||||||
Detour Lake mine | 38 | — | 134 | — | ||||||||||
Macassa mine | 5 | — | 13 | — | ||||||||||
Nunavut | ||||||||||||||
Meliadine mine | 9 | 7 | 26 | 24 | ||||||||||
Meadowbank complex | 36 | 30 | 74 | 75 | ||||||||||
Australia | ||||||||||||||
Fosterville mine | 5 | — | 18 | — | ||||||||||
Europe | ||||||||||||||
Kittila mine | 3 | 2 | 10 | 7 | ||||||||||
Mexico | ||||||||||||||
Pinos Altos mine | 268 | 305 | 750 | 997 | ||||||||||
Creston Mascota mine | 2 | 23 | 10 | 114 | ||||||||||
La India mine | 19 | 8 | 67 | 34 | ||||||||||
Total silver (thousands of ounces): | 598 | 619 | 1,769 | 2,029 | ||||||||||
Zinc (tonnes) | 2,099 | 2,744 | 4,812 | 8,279 | ||||||||||
Copper (tonnes) | 647 | 833 | 2,196 | 2,365 | ||||||||||
AGNICO EAGLE MINES LIMITED |
||||||||||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | ||||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Total cash costs per ounce of gold produced — co-product basis(v): | ||||||||||||||
Quebec | ||||||||||||||
LaRonde mine | $ 963 | $ 614 | $ 805 | $ 676 | ||||||||||
LaRonde Zone 5 mine | 974 | 797 | 979 | 793 | ||||||||||
Canadian Malartic mine(ii) | 835 | 725 | 803 | 680 | ||||||||||
Goldex mine | 805 | 762 | 765 | 686 | ||||||||||
Ontario | ||||||||||||||
Detour Lake mine | 695 | — | 657 | — | ||||||||||
Macassa mine | 691 | — | 661 | — | ||||||||||
Nunavut | ||||||||||||||
Meliadine mine(vi) | 779 | 636 | 869 | 629 | ||||||||||
Meadowbank complex(vii) | 935 | 1,222 | 1,145 | 1,147 | ||||||||||
Hope Bay mine | — | 1,333 | — | 1,053 | ||||||||||
Australia | ||||||||||||||
Fosterville mine | 436 | — | 366 | — | ||||||||||
Europe | ||||||||||||||
Kittila mine | 844 | 827 | 891 | 844 | ||||||||||
Mexico | ||||||||||||||
Pinos Altos mine | 1,520 | 1,059 | 1,479 | 1,108 | ||||||||||
Creston Mascota mine | 1,167 | 636 | 803 | 568 | ||||||||||
La India mine | 1,211 | 977 | 990 | 1,024 | ||||||||||
Weighted average total cash costs per ounce of gold produced | $ 804 | $ 839 | $ 801 | $ 816 | ||||||||||
Total cash costs per ounce of gold produced — by-product basis(v): | ||||||||||||||
Quebec | ||||||||||||||
LaRonde mine | $ 773 | $ 390 | $ 590 | $ 436 | ||||||||||
LaRonde Zone 5 mine | 973 | 794 | 976 | 789 | ||||||||||
Canadian Malartic mine(ii) | 820 | 705 | 787 | 659 | ||||||||||
Goldex mine | 804 | 762 | 765 | 686 | ||||||||||
Ontario | ||||||||||||||
Detour Lake mine | 691 | — | 650 | — | ||||||||||
Macassa mine | 689 | — | 659 | — | ||||||||||
Nunavut | ||||||||||||||
Meliadine mine(vi) | 777 | 634 | 866 | 626 | ||||||||||
Meadowbank complex(vii) | 930 | 1,214 | 1,140 | 1,139 | ||||||||||
Hope Bay mine | — | 1,333 | — | 1,053 | ||||||||||
Australia | ||||||||||||||
Fosterville mine | 435 | — | 365 | — | ||||||||||
Europe | ||||||||||||||
Kittila mine | 843 | 826 | 889 | 843 | ||||||||||
Mexico | ||||||||||||||
Pinos Altos mine | 1,295 | 854 | 1,247 | 847 | ||||||||||
Creston Mascota mine | 1,188 | 486 | 744 | 322 | ||||||||||
La India mine | 1,196 | 971 | 966 | 1,001 | ||||||||||
Weighted average total cash costs per ounce of gold produced | $ 779 | $ 784 | $ 769 | $ 755 | ||||||||||
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 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 |
||||||||||||||
(ii) The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic mine | ||||||||||||||
(iii) 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. Payable production for the three and nine months ended September 30, 2021 includes 6,881 and 24,057 ounces of gold from the Tiriganiaq open pit deposit at the Meliadine mine, respectively, which were produced prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021. Payable production for the nine months ended September 30, 2021 include 348 ounces of gold from the Amaruq Underground project at the Meadowbank complex which were produced prior to the achievement of commercial production at the Amaruq Underground project on August 1, 2022 | ||||||||||||||
(iv) The Canadian Malartic mine’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 | ||||||||||||||
(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 calculation and use of total cash cost per ounce of gold produced and Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to Total Cash Cost per Ounce of Gold Produced by Mine and Reconciliation of Production Costs to Minesite Cost per Tonne by Mine for a reconciliation of these measures to the recent IFRS measure | ||||||||||||||
(vi) The Meliadine mine’s cost calculations per ounce of gold produced for the three and nine months ended September 30, 2021 excludes 6,881 and 24,057 ounces of payable gold production which were produced prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021 | ||||||||||||||
(vii) The Meadowbank mine’s cost calculations per ounce of gold produced for the nine months ended September 30, 2021 exclude 348 ounces of gold from the Amaruq Underground project at the Meadowbank complex which were produced prior to the achievement of commercial production at the Amaruq Underground project on August 1, 2022 |
AGNICO EAGLE MINES LIMITED |
|||||||||||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | |||||||||||
(thousands of United States dollars, except share amounts, IFRS basis) | |||||||||||
(Unaudited) | |||||||||||
As at | As at | ||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | Restated(i) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ 821,758 | $ 185,786 | |||||||||
Trade receivables | 6,962 | 13,545 | |||||||||
Inventories | 1,258,930 | 878,944 | |||||||||
Income taxes recoverable | 29,410 | 7,674 | |||||||||
Fair value of derivative financial instruments | 3,197 | 12,305 | |||||||||
Other current assets | 299,550 | 204,134 | |||||||||
Total current assets | 2,419,807 | 1,302,388 | |||||||||
Non-current assets: | |||||||||||
Goodwill | 2,163,198 | 407,792 | |||||||||
Property, plant and mine development | 17,972,350 | 7,675,595 | |||||||||
Investments | 275,599 | 343,509 | |||||||||
Deferred income tax asset | — | 133,608 | |||||||||
Other assets | 442,801 | 353,198 | |||||||||
Total assets | $ 23,273,755 | $ 10,216,090 | |||||||||
LIABILITIES | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ 718,969 | $ 414,673 | |||||||||
Share based liabilities | 5,422 | — | |||||||||
Interest payable | 20,507 | 12,303 | |||||||||
Income taxes payable | 40,495 | 47,213 | |||||||||
Current portion of long-term debt | 100,000 | 225,000 | |||||||||
Reclamation provision | 19,065 | 7,547 | |||||||||
Lease obligations | 29,526 | 32,988 | |||||||||
Fair value of derivative financial instruments | 182,353 | 22,089 | |||||||||
Total current liabilities | 1,116,337 | 761,813 | |||||||||
Non-current liabilities: | |||||||||||
Long-term debt | 1,241,637 | 1,340,223 | |||||||||
Reclamation provision | 735,216 | 722,449 | |||||||||
Lease obligations | 99,371 | 98,445 | |||||||||
Share based liabilities | 5,001 | — | |||||||||
Deferred income and mining tax liabilities | 3,881,504 | 1,223,128 | |||||||||
Other liabilities | 67,990 | 70,261 | |||||||||
Total liabilities | 7,147,056 | 4,216,319 | |||||||||
EQUITY | |||||||||||
Common shares: | |||||||||||
Outstanding — 455,927,676 common shares issued, less 848,740 shares held in trust | 16,196,664 | 5,863,512 | |||||||||
Stock options | 198,451 | 191,112 | |||||||||
Contributed surplus | 24,097 | 37,254 | |||||||||
Deficit | (224,005) | (146,383) | |||||||||
Other reserves | (68,508) | 54,276 | |||||||||
Total equity | 16,126,699 | 5,999,771 | |||||||||
Total liabilities and equity | $ 23,273,755 | $ 10,216,090 | |||||||||
Note: | |||||||||||
(i) Certain previously reported line items have been restated to reflect the retrospective application of amendments to IAS 16. | |||||||||||
AGNICO EAGLE MINES LIMITED |
|||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME | |||||||
(thousands of United States dollars, except per share amounts, IFRS basis) | |||||||
(Unaudited) | |||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||
2022 | 2021 | 2022 | 2021 | ||||
Restated(i) | Restated(i) | ||||||
REVENUES | |||||||
Revenues from mining operations | $ 1,449,697 | $ 983,818 | $ 4,356,443 | $ 2,918,094 | |||
COSTS AND EXPENSES | |||||||
Production(ii) | 657,073 | 455,627 | 1,976,444 | 1,306,053 | |||
Exploration and corporate development | 64,001 | 42,141 | 200,195 | 110,792 | |||
Amortization of property, plant and mine development | 273,191 | 191,771 | 824,991 | 546,510 | |||
General and administrative | 49,462 | 31,315 | 166,279 | 107,573 | |||
Finance costs | 19,278 | 22,780 | 62,892 | 68,209 | |||
Loss on derivative financial instruments | 162,374 | 35,420 | 174,463 | 35,366 | |||
Foreign currency translation gain | (15,479) | (6,478) | (27,761) | (7,116) | |||
Care and maintenance | 10,538 | — | 30,251 | — | |||
Other expenses | 2,975 | 3,970 | 112,148 | 7,205 | |||
Income before income and mining taxes | 226,284 | 207,272 | 836,541 | 743,502 | |||
Income and mining taxes expense | 146,641 | 88,315 | 371,301 | 282,915 | |||
Net income for the period | $ 79,643 | $ 118,957 | $ 465,240 | $ 460,587 | |||
Net income per share – basic | $ 0.17 | $ 0.49 | $ 1.08 | $ 1.89 | |||
Net income per share – diluted | $ 0.17 | $ 0.49 | $ 1.08 | $ 1.88 | |||
Weighted average number of common shares outstanding (in thousands): | |||||||
Basic | 455,157 | 243,932 | 431,718 | 243,106 | |||
Diluted | 456,274 | 244,940 | 433,087 | 244,559 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the retrospective application of amendments to IAS 16 and the final purchase price allocation of TMAC Resources Inc. (“TMAC”). |
|||||||
(ii) Exclusive of amortization, which is shown separately. |
AGNICO EAGLE MINES LIMITED |
|||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(thousands of United States dollars, IFRS basis) | |||||||
(Unaudited) | |||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||
2022 | 2021 | 2022 | 2021 | ||||
Restated(i) | Restated(i) | ||||||
OPERATING ACTIVITIES | |||||||
Net income for the period | $ 79,643 | $ 118,957 | $ 465,240 | $ 460,587 | |||
Add (deduct) adjusting items: | |||||||
Amortization of property, plant and mine development | 273,191 | 191,771 | 824,991 | 546,510 | |||
Deferred income and mining taxes | 49,662 | 53,631 | 129,876 | 163,293 | |||
Unrealized loss on currency and commodity derivatives | 159,858 | 27,947 | 169,372 | 44,337 | |||
Unrealized (gain) loss on warrants | (5,688) | 17,851 | 14,494 | 31,440 | |||
Stock-based compensation | 13,805 | 13,449 | 43,012 | 45,028 | |||
Foreign currency translation gain | (15,479) | (6,478) | (27,761) | (7,116) | |||
Other | 3,372 | 2,726 | 11,107 | 5,864 | |||
Changes in non-cash working capital balances: | |||||||
Trade receivables | (24,295) | 3,386 | 14,540 | (1,031) | |||
Income taxes | 47,834 | (2,665) | 4,503 | (70,751) | |||
Inventories | (159,300) | (154,611) | 8,742 | (175,284) | |||
Other current assets | 73,459 | (24,570) | (44,406) | (80,376) | |||
Accounts payable and accrued liabilities | 72,905 | 43,341 | 97,950 | 108,652 | |||
Interest payable | 6,471 | 12,441 | 4,476 | 12,041 | |||
Cash provided by operating activities | 575,438 | 297,176 | 1,716,136 | 1,083,194 | |||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and mine development | (435,659) | (250,807) | (1,137,406) | (659,709) | |||
Cash and cash equivalents acquired in Kirkland acquisition | — | — | 838,732 | — | |||
Acquisition of TMAC Resources Inc., net of cash and cash equivalents | — | — | — | (185,898) | |||
Advance to TMAC Resources Inc. to fund repayment of debt | — | — | — | (105,000) | |||
Payment to repurchase the Hope Bay royalty | — | — | — | (50,000) | |||
Proceeds from sale of property, plant and mine development | 283 | 507 | 805 | 1,049 | |||
Net sale (purchases) of short-term investments | 1,016 | 1,158 | (3,114) | 1,824 | |||
Net proceeds from sale of equity securities | — | — | — | 4,173 | |||
Purchases of equity securities and other investments | (4,936) | (19,071) | (36,790) | (29,920) | |||
Payments for financial assets at amortized cost | — | — | — | (16,000) | |||
Proceeds from loan repayment | — | 40,000 | — | ||||
Decrease in restricted cash | — | — | — | 23,077 | |||
Cash used in investing activities | (439,296) | (268,213) | (297,773) | (1,016,404) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from Credit Facility | — | 110,000 | 100,000 | 450,000 | |||
Repayment of Credit Facility | — | (110,000) | (100,000) | (450,000) | |||
Repayment of Senior Notes | (100,000) | — | (225,000) | — | |||
Repayment of lease obligations | (8,239) | (1,823) | (25,025) | (17,294) | |||
Dividends paid | (160,121) | (65,586) | (464,704) | (205,594) | |||
Repurchase of common shares | (54,809) | — | (104,956) | (34,606) | |||
Proceeds on exercise of stock options | 63 | 319 | 24,008 | 16,964 | |||
Common shares issued | 5,121 | 4,686 | 15,527 | 13,831 | |||
Cash used in financing activities | (317,985) | (62,404) | (780,150) | (226,699) | |||
Effect of exchange rate changes on cash and cash equivalents | (3,254) | (2,717) | (2,241) | (1,106) | |||
Net (decrease) increase in cash and cash equivalents during the period | (185,097) | (36,158) | 635,972 | (161,015) | |||
Cash and cash equivalents, beginning of period | 1,006,855 | 277,670 | 185,786 | 402,527 | |||
Cash and cash equivalents, end of period | $ 821,758 | $ 241,512 | $ 821,758 | $ 241,512 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Interest paid | $ 6,037 | $ 7,696 | $ 47,459 | $ 49,749 | |||
Income and mining taxes paid | $ 50,139 | $ 38,153 | $ 238,217 | $ 191,324 | |||
Note: | |||||||
(i) Certain previously reported line items have been restated to reflect the retrospective application of amendments to IAS 16 and the final purchase price allocation of TMAC. |
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 for details on the composition, usefulness and other information regarding the Company’s use of total cash costs per ounce of gold produced and minesite costs per tonne | ||||||||||||
The following tables set out a reconciliation of total cash costs per ounce of gold produced (on both a by-product basis and co-product basis) and minesite costs per tonne to production costs, exclusive of amortization, as presented in the condensed interim consolidated statements of income in accordance with IFRS | ||||||||||||
Total Production Costs by Mine | ||||||||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||
(thousands of United States dollars) | 2022 | 2021 | 2022 | 2021 | ||||||||
Quebec | ||||||||||||
LaRonde mine | $ 83,911 | $ 58,842 | $ 163,701 | $ 169,990 | ||||||||
LaRonde Zone 5 mine | 18,066 | 14,871 | 51,932 | 41,809 | ||||||||
LaRonde complex | 101,977 | 73,713 | 215,633 | 211,799 | ||||||||
Canadian Malartic mine(i) | 58,516 | 62,393 | 171,858 | 181,319 | ||||||||
Goldex mine | 26,297 | 23,223 | 79,044 | 70,997 | ||||||||
Ontario | ||||||||||||
Detour Lake mine | 113,736 | — | 371,130 | — | ||||||||
Macassa mine | 33,533 | — | 98,848 | — | ||||||||
Nunavut | ||||||||||||
Meliadine mine | 71,830 | 56,269 | 236,895 | 181,547 | ||||||||
Meadowbank complex | 109,905 | 111,425 | 313,989 | 295,121 | ||||||||
Hope Bay mine | — | 22,306 | — | 63,975 | ||||||||
Australia | ||||||||||||
Fosterville mine | 34,214 | — | 170,518 | — | ||||||||
Europe | ||||||||||||
Kittila mine | 51,622 | 51,140 | 154,388 | 147,744 | ||||||||
Mexico | ||||||||||||
Pinos Altos mine | 34,513 | 37,447 | 106,922 | 108,790 | ||||||||
Creston Mascota mine | 644 | 1,773 | 1,743 | 6,199 | ||||||||
La India mine | 20,286 | 15,938 | 55,476 | 38,562 | ||||||||
Production costs per the condensed interim consolidated statements of income |
$ 657,073 | $ 455,627 | $ 1,976,444 | $ 1,306,053 | ||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine and Reconciliation of Production Costs to Minesite Costs per |
||||||||||||
(thousands of United States dollars, except as noted) | ||||||||||||
LaRonde mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 63,573 | 88,795 | 221,858 | 244,865 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 83,911 | $ 1,320 | $ 58,842 | $ 663 | $ 163,701 | $ 738 | $ 169,990 | $ 694 | ||||
Inventory adjustments(ii) | (28,982) | (452) | (7,104) | (80) | 2,691 | 12 | (11,658) | (48) | ||||
Realized gains and losses on hedges of production costs | 2,052 | 32 | (2,030) | (23) | 1,440 | 6 | (7,801) | (32) | ||||
Other adjustments(vi) | 3,986 | 63 | 4,829 | 54 | 10,827 | 49 | 15,011 | 62 | ||||
Cash operating costs (co-product basis) | $ 60,967 | $ 963 | $ 54,537 | $ 614 | $ 178,659 | $ 805 | $ 165,542 | $ 676 | ||||
By-product metal revenues | (11,916) | (190) | (19,906) | (224) | (47,777) | (215) | (58,683) | (240) | ||||
Cash operating costs (by-product basis) | $ 49,051 | $ 773 | $ 34,631 | $ 390 | $ 130,882 | $ 590 | $ 106,859 | $ 436 | ||||
LaRonde mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 416 | 444 | 1,293 | 1,374 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 83,911 | $ 202 | $ 58,842 | $ 133 | $ 163,701 | $ 127 | $ 169,990 | $ 124 | ||||
Production costs (C$) | C$ 109,561 | C$ 264 | C$ 74,125 | C$ 167 | C$ 210,893 | C$ 163 | C$ 213,036 | C$ 155 | ||||
Inventory adjustments (C$)(ii) | (37,841) | (91) | (8,967) | (20) | 372 | — | (12,798) | (9) | ||||
Other adjustments (C$)(vi) | (2,328) | (6) | (3,938) | (9) | (9,205) | (7) | (9,561) | (7) | ||||
Minesite operating costs (C$) | C$ 69,392 | C$ 167 | C$ 61,220 | C$ 138 | C$ 202,060 | C$ 156 | C$ 190,677 | C$ 139 | ||||
LaRonde Zone 5 mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 19,048 | 17,952 | 54,310 | 52,483 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 18,066 | $ 948 | $ 14,871 | $ 828 | $ 51,932 | $ 956 | $ 41,809 | $ 797 | ||||
Inventory adjustments(ii) | (16) | (1) | (120) | (6) | 799 | 15 | 1,567 | 30 | ||||
Realized gains and losses on hedges of production costs | 478 | 25 | (480) | (27) | 335 | 6 | (1,844) | (36) | ||||
Other adjustments(vi) | 33 | 2 | 37 | 2 | 82 | 2 | 94 | 2 | ||||
Cash operating costs (co-product basis) | $ 18,561 | $ 974 | $ 14,308 | $ 797 | $ 53,148 | $ 979 | $ 41,626 | $ 793 | ||||
By-product metal revenues | (35) | (1) | (61) | (3) | (154) | (3) | (213) | (4) | ||||
Cash operating costs (by-product basis) | $ 18,526 | $ 973 | $ 14,247 | $ 794 | $ 52,994 | $ 976 | $ 41,413 | $ 789 | ||||
LaRonde Zone 5 mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 295 | 293 | 865 | 848 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 18,066 | $ 61 | $ 14,871 | $ 51 | $ 51,932 | $ 60 | $ 41,809 | $ 49 | ||||
Production costs (C$) | C$ 23,505 | C$ 80 | C$ 18,637 | C$ 64 | C$ 66,532 | C$ 77 | C$ 52,436 | C$ 62 | ||||
Inventory adjustments (C$)(ii) | 160 | — | (44) | (1) | 1,259 | 1 | 1,858 | 2 | ||||
Minesite operating costs (C$) | C$ 23,665 | C$ 80 | C$ 18,593 | C$ 63 | C$ 67,791 | C$ 78 | C$ 54,294 | C$ 64 | ||||
LaRonde complex
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 82,621 | 106,747 | 276,168 | 297,348 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 101,977 | $ 1,234 | $ 73,713 | $ 691 | $ 215,633 | $ 781 | $ 211,799 | $ 712 | ||||
Inventory adjustments(ii) | (28,998) | (351) | (7,224) | (68) | 3,490 | 13 | (10,091) | (34) | ||||
Realized gains and losses on hedges of production costs | 2,530 | 31 | (2,510) | (24) | 1,775 | 6 | (9,645) | (32) | ||||
Other adjustments(vi) | 4,019 | 49 | 4,866 | 46 | 10,909 | 39 | 15,105 | 51 | ||||
Cash operating costs (co-product basis) | $ 79,528 | $ 963 | $ 68,845 | $ 645 | $ 231,807 | $ 839 | $ 207,168 | $ 697 | ||||
By-product metal revenues | (11,951) | (145) | (19,967) | (187) | (47,931) | (173) | (58,896) | (198) | ||||
Cash operating costs (by-product basis) | $ 67,577 | $ 818 | $ 48,878 | $ 458 | $ 183,876 | $ 666 | $ 148,272 | $ 499 | ||||
LaRonde complex
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 711 | 737 | 2,158 | 2,222 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 101,977 | $ 143 | $ 73,713 | $ 100 | $ 215,633 | $ 100 | $ 211,799 | $ 95 | ||||
Production costs (C$) | C$ 133,066 | C$ 187 | C$ 92,762 | C$ 126 | C$ 277,425 | C$ 128 | C$ 265,472 | C$ 119 | ||||
Inventory adjustments (C$)(ii) | (37,681) | (53) | (9,011) | (12) | 1,631 | 1 | (10,940) | (5) | ||||
Other adjustments (C$)(vi) | (2,328) | (3) | (3,938) | (6) | (9,205) | (4) | (9,561) | (4) | ||||
Minesite operating costs (C$) | C$ 93,057 | C$ 131 | C$ 79,813 | C$ 108 | C$ 269,851 | C$ 125 | C$ 244,971 | C$ 110 | ||||
Canadian Malartic mine
Per Ounce of Gold Produced(i) |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 75,262 | 86,803 | 242,957 | 268,459 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 58,516 | $ 777 | $ 62,393 | $ 719 | $ 171,858 | $ 707 | $ 181,319 | $ 675 | ||||
Inventory adjustments(ii) | (2,445) | (32) | 266 | 3 | 422 | 2 | 764 | 3 | ||||
Realized gains and losses on hedges of production costs | — | — | — | — | — | — | (78) | — | ||||
Other adjustments(vi) | 6,737 | 90 | 232 | 3 | 22,851 | 94 | 557 | 2 | ||||
Cash operating costs (co-product basis) | $ 62,808 | $ 835 | $ 62,891 | $ 725 | $ 195,131 | $ 803 | $ 182,562 | $ 680 | ||||
By-product metal revenues | (1,067) | (15) | (1,718) | (20) | (3,972) | (16) | (5,594) | (21) | ||||
Cash operating costs (by-product basis) | $ 61,741 | $ 820 | $ 61,173 | $ 705 | $ 191,159 | $ 787 | $ 176,968 | $ 659 | ||||
Canadian Malartic mine
Per Tonne(i) |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 2,484 | 2,914 | 7,295 | 8,365 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 58,516 | $ 24 | $ 62,393 | $ 21 | $ 171,858 | $ 24 | $ 181,319 | $ 22 | ||||
Production costs (C$) | C$ 75,515 | C$ 30 | C$ 78,967 | C$ 27 | C$ 218,224 | C$ 30 | C$ 229,434 | C$ 27 | ||||
Inventory adjustments (C$)(ii) | (2,980) | (1) | 663 | — | 694 | — | 1,466 | 1 | ||||
Other adjustments (C$)(vi) | 8,705 | 4 | — | — | 28,933 | 4 | — | — | ||||
Minesite operating costs (C$) | C$ 81,240 | C$ 33 | C$ 79,630 | C$ 27 | C$ 247,851 | C$ 34 | C$ 230,900 | C$ 28 | ||||
Goldex mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 33,889 | 28,823 | 105,211 | 98,132 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 26,297 | $ 776 | $ 23,223 | $ 806 | $ 79,044 | $ 751 | $ 70,997 | $ 723 | ||||
Inventory adjustments(ii) | 6 | — | (412) | (14) | 694 | 7 | (374) | (4) | ||||
Realized gains and losses on hedges of production costs | 909 | 27 | (902) | (32) | 638 | 6 | (3,465) | (35) | ||||
Other adjustments(vi) | 60 | 2 | 53 | 2 | 155 | 1 | 152 | 2 | ||||
Cash operating costs (co-product basis) | $ 27,272 | $ 805 | $ 21,962 | $ 762 | $ 80,531 | $ 765 | $ 67,310 | $ 686 | ||||
By-product metal revenues | (10) | (1) | (6) | — | (31) | — | (29) | — | ||||
Cash operating costs (by-product basis) | $ 27,262 | $ 804 | $ 21,956 | $ 762 | $ 80,500 | $ 765 | $ 67,281 | $ 686 | ||||
Goldex mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 710 | 695 | 2,192 | 2,145 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 26,297 | $ 37 | $ 23,223 | $ 33 | $ 79,044 | $ 36 | $ 70,997 | $ 33 | ||||
Production costs (C$) | C$ 34,381 | C$ 48 | C$ 29,226 | C$ 42 | C$ 101,552 | C$ 46 | C$ 88,930 | C$ 41 | ||||
Inventory adjustments (C$)(ii) | 101 | 1 | (454) | (1) | 1,016 | 1 | (520) | — | ||||
Minesite operating costs (C$) | C$ 34,482 | C$ 49 | C$ 28,772 | C$ 41 | C$ 102,568 | C$ 47 | C$ 88,410 | C$ 41 | ||||
Detour Lake Mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 175,487 | — | 471,445 | — | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 113,736 | $ 648 | $ — | $ — | $ 371,130 | $ 787 | $ — | $ — | ||||
Inventory adjustments(ii) | 4,621 | 26 | — | — | (8,012) | (17) | — | — | ||||
Purchase price allocation to inventory(v) | (3,120) | (18) | — | — | (71,957) | (152) | — | — | ||||
Other adjustments(vi) | 6,799 | 39 | — | — | 18,388 | 39 | — | — | ||||
Cash operating costs (co-product basis) | $ 122,036 | $ 695 | $ — | $ — | $ 309,549 | $ 657 | $ — | $ — | ||||
By-product metal revenues | (736) | (4) | — | — | (2,956) | (7) | — | — | ||||
Cash operating costs (by-product basis) | $ 121,300 | $ 691 | $ — | $ — | $ 306,593 | $ 650 | $ — | $ — | ||||
Detour Lake Mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 6,505 | — | 16,294 | — | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 113,736 | $ 17 | $ — | $ — | $ 371,130 | $ 23 | $ — | $ — | ||||
Production costs (C$) | C$ 148,903 | C$ 23 | C$ — | C$ — | C$ 476,142 | C$ 29 | C$ — | C$ — | ||||
Inventory adjustments (C$)(ii) | 6,808 | 1 | — | — | (9,059) | (1) | — | — | ||||
Purchase price allocation to inventory(C$)(v) | (4,809) | (1) | — | — | (92,317) | (6) | — | — | ||||
Other adjustments (C$)(vi) | 8,938 | 2 | — | — | 23,687 | 2 | — | — | ||||
Minesite operating costs (C$) | C$ 159,840 | C$ 25 | C$ — | C$ — | C$ 398,453 | C$ 24 | C$ — | C$ — | ||||
Macassa Mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 51,775 | — | 137,525 | — | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 33,533 | $ 648 | $ — | $ — | $ 98,848 | $ 719 | $ — | $ — | ||||
Inventory adjustments(ii) | 599 | 12 | — | — | (548) | (4) | — | — | ||||
Purchase price allocation to inventory(vi) | — | — | — | — | (10,326) | (75) | — | — | ||||
Other adjustments(vi) | 1,634 | 31 | — | — | 2,922 | 21 | — | — | ||||
Cash operating costs (co-product basis) | $ 35,766 | $ 691 | $ — | $ — | $ 90,896 | $ 661 | $ — | $ — | ||||
By-product metal revenues | (89) | (2) | — | — | (276) | (2) | — | — | ||||
Cash operating costs (by-product basis) | $ 35,677 | $ 689 | $ — | $ — | $ 90,620 | $ 659 | $ — | $ — | ||||
Macassa Mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 75 | — | 210 | — | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 33,533 | $ 447 | $ — | $ — | $ 98,848 | $ 470 | $ — | $ — | ||||
Production costs (C$) | C$ 43,781 | C$ 588 | C$ — | C$ — | C$ 126,822 | C$ 605 | C$ — | C$ — | ||||
Inventory adjustments (C$)(ii) | 1,047 | 14 | — | — | (319) | (2) | — | — | ||||
Purchase price allocation to inventory(C$)(vi) | (120) | (2) | — | — | (13,248) | (63) | — | — | ||||
Other adjustments (C$)(vi) | 2,090 | 2 | — | — | 3,747 | 19 | — | — | ||||
Minesite operating costs (C$) | C$ 46,798 | C$ 628 | C$ — | C$ — | C$ 117,002 | C$ 559 | C$ — | C$ — | ||||
Meliadine mine
Per Ounce of Gold Produced(vii) |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 91,201 | 90,143 | 269,477 | 265,787 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 71,830 | $ 788 | $ 56,269 | $ 624 | $ 236,895 | $ 879 | $ 181,547 | $ 683 | ||||
Inventory adjustments(ii) | (1,601) | (18) | 7,606 | 84 | (1,640) | (6) | 9,033 | 34 | ||||
Realized gains and losses on hedges of production costs | 758 | 8 | (3,042) | (34) | (1,437) | (5) | (9,656) | (36) | ||||
IAS 16 amendments(iv) | — | — | (3,540) | (39) | — | — | (14,059) | (53) | ||||
Other adjustments(vi) | 80 | 1 | 65 | 1 | 243 | 1 | 189 | 1 | ||||
Cash operating costs (co-product basis) | $ 71,067 | $ 779 | $ 57,358 | $ 636 | $ 234,061 | $ 869 | $ 167,054 | $ 629 | ||||
By-product metal revenues | (167) | (2) | (165) | (2) | (572) | (3) | (610) | (3) | ||||
Cash operating costs (by-product basis) | $ 70,900 | $ 777 | $ 57,193 | $ 634 | $ 233,489 | $ 866 | $ 166,444 | $ 626 | ||||
Meliadine mine
Per Tonne(viii) |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 401 | 377 | 1,282 | 1,039 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 71,830 | $ 179 | $ 56,269 | $ 149 | $ 236,895 | $ 185 | $ 181,547 | $ 175 | ||||
Production costs (C$) | C$ 91,628 | C$ 229 | C$ 70,580 | C$ 187 | C$ 300,553 | C$ 235 | C$ 228,638 | C$ 220 | ||||
Inventory adjustments (C$)(ii) | (1,286) | (3) | 10,000 | 27 | (1,002) | (1) | 10,974 | 11 | ||||
IAS 16 amendments (C$)(iv) | — | — | (4,435) | (12) | — | — | (17,706) | (17) | ||||
Minesite operating costs (C$) | C$ 90,342 | C$ 226 | C$ 76,145 | C$ 202 | C$ 299,551 | C$ 234 | C$ 221,906 | C$ 214 | ||||
Meadowbank complex
Per Ounce of Gold Produced(ix) |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 122,994 | 89,706 | 279,457 | 255,222 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 109,905 | $ 894 | $ 111,425 | $ 1,242 | $ 313,989 | $ 1,124 | $ 295,121 | $ 1,156 | ||||
Inventory adjustments(ii) | 6,231 | 50 | 557 | 6 | 12,302 | 44 | 7,324 | 29 | ||||
Realized gains and losses on hedges of production costs | (1,084) | (9) | (3,223) | (36) | (4,758) | (17) | (10,433) | (41) | ||||
Operational care & maintenance due to COVID-19(iii) | — | — | — | — | (1,436) | (6) | — | — | ||||
IAS 16 amendments(iv) | — | — | — | — | — | — | (335) | (1) | ||||
Other adjustments(vi) | (27) | — | 847 | 10 | 13 | — | 1,044 | 4 | ||||
Cash operating costs (co-product basis) | $ 115,025 | $ 935 | $ 109,606 | $ 1,222 | $ 320,110 | $ 1,145 | $ 292,721 | $ 1,147 | ||||
By-product metal revenues | (687) | (5) | (714) | (8) | (1,569) | (5) | (1,907) | (8) | ||||
Cash operating costs (by-product basis) | $ 114,338 | $ 930 | $ 108,892 | $ 1,214 | $ 318,541 | $ 1,140 | $ 290,814 | $ 1,139 | ||||
Meadowbank complex
Per Tonne* |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 1,031 | 971 | 2,816 | 2,774 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 109,905 | $ 107 | $ 111,425 | $ 115 | $ 313,989 | $ 112 | $ 295,121 | $ 106 | ||||
Production costs (C$) | C$ 139,317 | C$ 135 | C$ 138,427 | C$ 143 | C$ 398,445 | C$ 141 | C$ 371,861 | C$ 134 | ||||
Inventory adjustments (C$)(ii) | 8,799 | 9 | 1,035 | 1 | 16,696 | 6 | 9,017 | 3 | ||||
Operational care and maintenance due to COVID-19 (C$)(iii) | — | — | — | — | (1,793) | — | — | — | ||||
IAS 16 amendments (C$)(iv) | — | — | — | — | — | — | (420) | — | ||||
Minesite operating costs (C$) | C$ 148,116 | C$ 144 | C$ 139,462 | C$ 144 | C$ 413,348 | C$ 147 | C$ 380,458 | C$ 137 | ||||
Hope Bay mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | — | 17,957 | — | 55,524 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ — | $ — | $ 22,306 | $ 1,242 | $ — | $ — | $ 63,975 | $ 1,152 | ||||
Inventory adjustments(ii) | — | — | 1,641 | 91 | — | — | (5,495) | (99) | ||||
Cash operating costs (co-product basis) | $ — | $ — | $ 23,947 | $ 1,333 | $ — | $ — | $ 58,480 | $ 1,053 | ||||
By-product metal revenues | — | — | — | — | — | — | — | — | ||||
Cash operating costs (by-product basis) | $ — | $ — | $ 23,947 | $ 1,333 | $ — | $ — | $ 58,480 | $ 1,053 | ||||
Hope Bay mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | — | 87 | — | 221 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ — | $ — | $ 22,306 | $ 256 | $ — | $ — | $ 63,975 | $ 289 | ||||
Production costs (C$) | C$ — | C$ — | C$ 28,104 | C$ 325 | C$ — | C$ — | C$ 80,049 | C$ 362 | ||||
Inventory adjustments (C$)(ii) | — | — | 1,924 | 22 | — | — | (7,403) | (33) | ||||
Minesite operating costs (C$) | C$ — | C$ — | C$ 30,028 | C$ 347 | C$ — | C$ — | C$ 72,646 | C$ 329 | ||||
Fosterville Mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 81,801 | — | 249,693 | — | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 34,214 | $ 418 | $ — | $ — | $ 170,518 | $ 683 | $ — | $ — | ||||
Inventory adjustments(ii) | 1,424 | 18 | — | — | (5,385) | (22) | — | — | ||||
Purchase price allocation to inventory(v) | — | — | — | — | (73,674) | (295) | — | — | ||||
Cash operating costs (co-product basis) | $ 35,638 | $ 436 | $ — | $ — | $ 91,459 | $ 366 | $ — | $ — | ||||
By-product metal revenues | (88) | (1) | — | — | (401) | (1) | — | — | ||||
Cash operating costs (by-product basis) | $ 35,550 | $ 435 | $ — | $ — | $ 91,058 | $ 365 | $ — | $ — | ||||
Fosterville Mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 172 | — | 385 | — | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 34,214 | $ 199 | $ — | $ — | $ 170,518 | $ 443 | $ — | $ — | ||||
Production costs (A$) | A$ 52,840 | A$ 306 | A$ — | A$ — | A$ 241,880 | A$ 627 | A$ — | A$ — | ||||
Inventory adjustments (A$)(ii) | 2,178 | 13 | — | — | (7,231) | (19) | — | — | ||||
Purchase price allocation to inventory(A$)(v) | (2,329) | (14) | — | — | (104,507) | (268) | — | — | ||||
Minesite operating costs (A$) | A$ 52,689 | A$ 305 | A$ — | A$ — | A$ 130,142 | A$ 340 | A$ — | A$ — | ||||
Kittila mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 61,901 | 62,089 | 172,223 | 176,068 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 51,622 | $ 834 | $ 51,140 | $ 824 | $ 154,388 | $ 896 | $ 147,744 | $ 839 | ||||
Inventory adjustments(ii) | (2,464) | (40) | (111) | (2) | (6,419) | (37) | 237 | 1 | ||||
Realized gains and losses on hedges of production costs | 3,076 | 50 | 160 | 2 | 5,296 | 31 | 99 | 1 | ||||
Other adjustments(vi) | 18 | — | 183 | 3 | 111 | 1 | 528 | 3 | ||||
Cash operating costs (co-product basis) | $ 52,252 | $ 844 | $ 51,372 | $ 827 | $ 153,376 | $ 891 | $ 148,608 | $ 844 | ||||
By-product metal revenues | (52) | (1) | (56) | (1) | (219) | (2) | (189) | (1) | ||||
Cash operating costs (by-product basis) | $ 52,200 | $ 843 | $ 51,316 | $ 826 | $ 153,157 | $ 889 | $ 148,419 | $ 843 | ||||
Kittila mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore milled (thousands of tonnes) | 487 | 549 | 1,504 | 1,526 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 51,622 | $ 106 | $ 51,140 | $ 93 | $ 154,388 | $ 103 | $ 147,744 | $ 97 | ||||
Production costs (€) | € 50,526 | € 104 | € 43,157 | € 79 | € 143,984 | € 96 | € 124,086 | € 81 | ||||
Inventory adjustments (€)(ii) | (1,932) | (4) | 29 | — | (4,861) | (4) | 127 | — | ||||
Minesite operating costs (€) | € 48,594 | € 100 | € 43,186 | € 79 | € 139,123 | € 92 | € 124,213 | € 81 | ||||
Pinos Altos mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 23,041 | 32,402 | 71,231 | 94,191 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 34,513 | $ 1,498 | $ 37,447 | $ 1,156 | $ 106,922 | $ 1,501 | $ 108,790 | $ 1,155 | ||||
Inventory adjustments(ii) | 360 | 16 | (2,759) | (85) | (1,796) | (25) | (3,449) | (37) | ||||
Realized gains and losses on hedges of production costs | (156) | (7) | (745) | (23) | (703) | (10) | (2,150) | (23) | ||||
Other adjustments(vi) | 298 | 13 | 372 | 11 | 923 | 13 | 1,187 | 13 | ||||
Cash operating costs (co-product basis) | $ 35,015 | $ 1,520 | $ 34,315 | $ 1,059 | $ 105,346 | $ 1,479 | $ 104,378 | $ 1,108 | ||||
By-product metal revenues | (5,171) | (225) | (6,645) | (205) | (16,516) | (232) | (24,586) | (261) | ||||
Cash operating costs (by-product basis) | $ 29,844 | $ 1,295 | $ 27,670 | $ 854 | $ 88,830 | $ 1,247 | $ 79,792 | $ 847 | ||||
Pinos Altos mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore processed (thousands of tonnes) | 378 | 444 | 1,128 | 1,458 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 34,513 | $ 91 | $ 37,447 | $ 84 | $ 106,922 | $ 95 | $ 108,790 | $ 75 | ||||
Inventory adjustments(ii) | 360 | 1 | (2,759) | (6) | (1,796) | (2) | (3,449) | (3) | ||||
Minesite operating costs | $ 34,873 | $ 92 | $ 34,688 | $ 78 | $ 105,126 | $ 93 | $ 105,341 | $ 72 | ||||
Creston Mascota mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 538 | 2,988 | 2,179 | 10,468 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 644 | $ 1,197 | $ 1,773 | $ 593 | $ 1,743 | $ 800 | $ 6,199 | $ 592 | ||||
Inventory adjustments(ii) | (30) | (57) | 73 | 24 | (57) | (26) | (545) | (52) | ||||
Other adjustments(vi) | 15 | 27 | 55 | 19 | 63 | 29 | 292 | 28 | ||||
Cash operating costs (co-product basis) | $ 629 | $ 1,167 | $ 1,901 | $ 636 | $ 1,749 | $ 803 | $ 5,946 | $ 568 | ||||
By-product metal revenues | 12 | 21 | (449) | (150) | (128) | (59) | (2,575) | (246) | ||||
Cash operating costs (by-product basis) | $ 641 | $ 1,188 | $ 1,452 | $ 486 | $ 1,621 | $ 744 | $ 3,371 | $ 322 | ||||
Creston Mascota mine
Per Tonne(xi) |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Tonnes of ore processed (thousands of tonnes) | — | — | — | — | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 644 | $ — | $ 1,773 | $ — | $ 1,743 | $ — | $ 6,199 | $ — | ||||
Inventory adjustments(ii) | (30) | — | 73 | — | (57) | — | (545) | — | ||||
Other adjustments(vi) | (614) | — | (1,846) | — | (1,686) | — | (5,654) | — | ||||
Minesite operating costs | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | ||||
La India mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 |
||||||||
Gold production (ounces) | 16,285 | 17,124 | 58,003 | 38,869 | ||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||||
Production costs | $ 20,286 | $ 1,246 | $ 15,938 | $ 931 | $ 55,476 | $ 956 | $ 38,562 | $ 992 | ||||
Inventory adjustments(ii) | (721) | (44) | 688 | 40 | 1,411 | 25 | 918 | 24 | ||||
Other adjustments(vi) | 150 | 9 | 110 | 6 | 523 | 9 | 309 | 8 | ||||
Cash operating costs (co-product basis) | $ 19,715 | $ 1,211 | $ 16,736 | $ 977 | $ 57,410 | $ 990 | $ 39,789 | $ 1,024 | ||||
By-product metal revenues | (240) | (15) | (112) | (6) | (1,399) | (24) | (864) | (23) | ||||
Cash operating costs (by-product basis) | $ 19,475 | $ 1,196 | $ 16,624 | $ 971 | $ 56,011 | $ 966 | $ 38,925 | $ 1,001 | ||||
La India mine
Per Tonne |
Three Months Ended September 30, 2022 |
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2022 |
Nine Months Ended September 30, 2021 | ||||||||
Tonnes of ore processed (thousands of tonnes) | 1,045 | 1,233 | 3,964 | 4,620 | ||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||||
Production costs | $ 20,286 | $ 19 | $ 15,938 | $ 13 | $ 55,476 | $ 14 | $ 38,562 | $ 8 | ||||
Inventory adjustments(ii) | (721) | — | 688 | — | 1,411 | — | 918 | 1 | ||||
Minesite operating costs | $ 19,565 | $ 19 | $ 16,626 | $ 13 | $ 56,887 | $ 14 | $ 39,480 | $ 9 |
Notes: |
(i) The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic mine |
(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 included in “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) Certain previously reported line items have been restated to reflect the retrospective application of IAS 16. The Company considers the disclosure of the total cash cost per ounce of gold produced (by-product and co-product) without the incorporation of the impacts of the retrospective application of IAS 16 amendments is helpful to investors so they can compare current performance to what management considers steady-state operational costs for the comparative period. |
(v) On February 2, 2022 the Company announced the completion of the merger of equals with Kirkland Lake Gold and this adjustment reflects the fair value allocated to inventory on the purchase price equation. |
(vi) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic mine, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, as well as, smelting, refining, and marketing charges to production costs. |
(vii) The Meliadine mine’s cost calculations per ounce of gold produced for the three and nine months ended September 30, 2021 excludes 6,881 and 24,057 ounces of payable gold production, respectively, which were produced prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021. |
(viii) The Meliadine mine’s cost calculations per tonne for the three and nine months ended September 30, 2021 excludes 43,491 and 213,867 tonnes of ore, from the Tiriganiaq open pit deposit, respectively, which were processed prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021. |
(ix) The Meadowbank complex’s cost calculations per ounce of gold produced for the nine months ended September 30, 2021 exclude 348 ounces of payable gold production which were processed prior to the achievement of commercial production at the Amaruq Underground project on August 1, 2022. |
* The Meadowbank complex’s cost calculations per tonne for the nine months ended September 30, 2021 exclude 1,913 tonnes of ore from the Amaruq Underground project which were processed prior to the achievement of commercial production at the Amaruq Underground project on August 1, 2022. |
(xi) The Creston Mascota mine’s cost calculations per tonne for the three and nine months ended September 30, 2022 exclude approximately $0.6 and $1.7 million of production costs incurred during these periods following the ceasing of mining activities at the Bravo pit during the third quarter of 2020. The Creston Mascota mine’s cost calculations per tonne for the three and nine months ended September 30, 2021 excludes approximately $1.8 million and $6.2 million of production costs incurred during these periods, 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) |
||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||
(United States dollars per ounce of gold produced, except where noted) | 2022 | 2021 | 2022 | 2021 | ||||||||||
Production costs per the condensed interim consolidated statements of income
(thousands of United States dollars) |
$ 657,073 | $ 455,627 | $ 1,976,444 | $ 1,306,053 | ||||||||||
Gold production (ounces)(i)(ii) | 816,794 | 534,782 | 2,335,569 | 1,560,068 | ||||||||||
Production costs per ounce of adjusted gold production | $ 804 | $ 852 | $ 846 | $ 837 | ||||||||||
Adjustments: | ||||||||||||||
Inventory adjustments(iii) | (27) | 1 | (2) | (1) | ||||||||||
Purchase price allocation to inventory(iv) | (4) | — | (67) | — | ||||||||||
IAS 16 amendments(v) | — | (7) | — | (9) | ||||||||||
In-kind royalty(v) | — | — | — | — | ||||||||||
Realized gains and losses on hedges of production costs | 7 | (19) | — | (23) | ||||||||||
Operational care and maintenance costs due to COVID-19(vi) | — | — | — | — | ||||||||||
Other(vii) | 24 | 12 | 24 | 12 | ||||||||||
Total cash costs per ounce of gold produced (co-product basis)(viii) | $ 804 | $ 839 | $ 801 | $ 816 | ||||||||||
By-product metal revenues | (25) | (55) | (32) | (61) | ||||||||||
Total cash costs per ounce of gold produced (by-product basis)(viii) | $ 779 | $ 784 | $ 769 | $ 755 | ||||||||||
Adjustments: | ||||||||||||||
Sustaining capital expenditures (including capitalized exploration) | 252 | 203 | 214 | 198 | ||||||||||
General and administrative expenses (including stock option expense) | 61 | 59 | 71 | 69 | ||||||||||
Non-cash reclamation provision and sustaining leases(ix) | 14 | 13 | 13 | 13 | ||||||||||
All-in sustaining costs per ounce of gold produced (by-product basis) | $ 1,106 | $ 1,059 | $ 1,067 | $ 1,035 | ||||||||||
By-product metal revenues | 25 | 55 | 32 | 61 | ||||||||||
All-in sustaining costs per ounce of gold produced (co-product basis) | $ 1,131 | $ 1,114 | $ 1,099 | $ 1,096 | ||||||||||
Notes: | ||||||||||||||
(i) Gold production for the three and nine months ended September 30, 2021 excludes 6,881 and 24,057 ounces of payable production of gold at the Meliadine mine, respectively, which were produced prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021 | ||||||||||||||
(ii) Gold production for the nine months ended September 30, 2021 exclude 348 ounces of payable production of gold at the Meadowbank mine which were processed prior to the achievement of commercial production at the Amaruq Underground project on August 1, 2022 | ||||||||||||||
(iii) 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 | ||||||||||||||
(iv) On February 2, 2022 the Company announced the completion of the merger of equals with Kirkland and this adjustment reflects the fair value allocated to inventory on the purchase price allocation | ||||||||||||||
(v) Certain previously reported line items have been restated to reflect the retrospective application of IAS 16. This adjustment eliminates the effects of the retrospective application of IAS 16 amendments on the total cash costs per ounce of gold produced (by-product and co-product) as well as all-in sustaining costs (by-product and co-product) | ||||||||||||||
(vi) 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 have now been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impacts of such events on the cash operating costs per ounce and minesite cost per tonne | ||||||||||||||
(vii) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic mine, 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 | ||||||||||||||
(viii) 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 | ||||||||||||||
(ix) Sustaining leases are lease payments related to sustaining assets |
Reconciliation of Operating Margin(i) to Net Income |
||||||||
Three Months Ended September 30, 2022 | ||||||||
Revenues from | ||||||||
Mining | Production | Operating | ||||||
Operations | Costs | Margin | ||||||
LaRonde mine | $ 161,091 | $ (83,911) | $ 77,180 | |||||
LaRonde Zone 5 mine | 38,203 | (18,066) | 20,137 | |||||
Canadian Malartic mine(ii) | 131,421 | (58,516) | 72,905 | |||||
Goldex mine | 58,672 | (26,297) | 32,375 | |||||
Detour Lake mine | 284,570 | (113,736) | 170,834 | |||||
Macassa mine | 87,827 | (33,533) | 54,294 | |||||
Meliadine mine | 155,299 | (71,830) | 83,469 | |||||
Meadowbank complex | 206,997 | (109,905) | 97,092 | |||||
Fosterville mine | 137,671 | (34,214) | 103,457 | |||||
Kittila mine | 110,384 | (51,622) | 58,762 | |||||
Pinos Altos mine | 45,543 | (34,513) | 11,030 | |||||
Creston Mascota mine | 1,131 | (644) | 487 | |||||
La India mine | 30,888 | (20,286) | 10,602 | |||||
Segment totals | $ 1,449,697 | $ (657,073) | $ 792,624 | |||||
Corporate and other: | ||||||||
Exploration and corporate development | 64,001 | |||||||
Amortization of property, plant, and mine development | 273,191 | |||||||
General and administrative | 49,462 | |||||||
Finance costs | 19,278 | |||||||
Loss on derivative financial instruments | 162,374 | |||||||
Environmental remediation | 3,401 | |||||||
Foreign currency translation gain | (15,479) | |||||||
Care and maintenance | 10,538 | |||||||
Other income | (426) | |||||||
Income and mining taxes expense | 146,641 | |||||||
Net income per consolidated interim condensed statements of income | $ 79,643 | |||||||
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 mine | ||||||||
Reconciliation of Operating Margin(i) to Net Income |
|||||||||||
Nine Months Ended September 30, 2022 | |||||||||||
Revenues from | |||||||||||
Mining | Production | Operating | |||||||||
Operations | Costs | Margin | |||||||||
LaRonde mine | $ 435,322 | $ (163,701) | $ 271,621 | ||||||||
LaRonde Zone 5 mine | 96,591 | (51,932) | 44,659 | ||||||||
Canadian Malartic mine(ii) | 428,526 | (171,858) | 256,668 | ||||||||
Goldex mine | 190,193 | (79,044) | 111,149 | ||||||||
Detour Lake mine | 884,863 | (371,130) | 513,733 | ||||||||
Macassa mine | 252,075 | (98,848) | 153,227 | ||||||||
Meliadine mine | 501,383 | (236,895) | 264,488 | ||||||||
Meadowbank complex | 473,927 | (313,989) | 159,938 | ||||||||
Hope Bay mine | 144 | — | 144 | ||||||||
Fosterville mine | 506,273 | (170,518) | 335,755 | ||||||||
Kittila mine | 326,872 | (154,388) | 172,484 | ||||||||
Pinos Altos mine | 148,870 | (106,922) | 41,948 | ||||||||
Creston Mascota mine | 4,049 | (1,743) | 2,306 | ||||||||
La India mine | 107,355 | (55,476) | 51,879 | ||||||||
Segment totals | $ 4,356,443 | $ (1,976,444) | $ 2,379,999 | ||||||||
Corporate and other: | |||||||||||
Exploration and corporate development | 200,195 | ||||||||||
Amortization of property, plant, and mine development | 824,991 | ||||||||||
General and administrative | 166,279 | ||||||||||
Finance costs | 62,892 | ||||||||||
Loss on derivative financial instruments | 174,463 | ||||||||||
Environmental remediation | 783 | ||||||||||
Foreign currency translation gain | (27,761) | ||||||||||
Care and maintenance | 30,251 | ||||||||||
Other expenses | 111,365 | ||||||||||
Income and mining taxes expense | 371,301 | ||||||||||
Net income per consolidated interim condensed statements of income | $ 465,240 | ||||||||||
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 mine | |||||||||||
Reconciliation of Operating Margin(i) to Net Income |
|||||||||||||
Three Months Ended September 30, 2021 | |||||||||||||
Revenues from | |||||||||||||
Mining | Production | Operating | |||||||||||
Operations | Costs | Margin | |||||||||||
LaRonde mine | $ 184,612 | $ (58,842) | $ 125,770 | ||||||||||
LaRonde Zone 5 mine | 34,320 | (14,871) | 19,449 | ||||||||||
Canadian Malartic mine(ii) | 155,832 | (62,393) | 93,439 | ||||||||||
Goldex mine | 52,644 | (23,223) | 29,421 | ||||||||||
Meliadine mine(iii) | 147,153 | (56,269) | 90,884 | ||||||||||
Meadowbank complex(iii) | 163,512 | (111,425) | 52,087 | ||||||||||
Hope Bay mine | 33,939 | (22,306) | 11,633 | ||||||||||
Kittila mine | 108,502 | (51,140) | 57,362 | ||||||||||
Pinos Altos mine | 69,418 | (37,447) | 31,971 | ||||||||||
Creston Mascota mine | 5,959 | (1,773) | 4,186 | ||||||||||
La India mine | 27,927 | (15,938) | 11,989 | ||||||||||
Segment totals | $ 983,818 | $ (455,627) | $ 528,191 | ||||||||||
Corporate and other: | |||||||||||||
Exploration and corporate development | 42,141 | ||||||||||||
Amortization of property, plant, and mine development(iii) | 191,771 | ||||||||||||
General and administrative | 31,315 | ||||||||||||
Finance costs | 22,780 | ||||||||||||
Loss on derivative financial instruments | 35,420 | ||||||||||||
Environmental remediation | 237 | ||||||||||||
Foreign currency translation gain | (6,478) | ||||||||||||
Other expenses | 3,733 | ||||||||||||
Income and mining taxes expense | 88,315 | ||||||||||||
Net income per consolidated interim condensed statements of income | $ 118,957 | ||||||||||||
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 mine | |||||||||||||
(iii) Certain previously reported line items have been restated to reflect the retrospective application of IAS 16 | |||||||||||||
Reconciliation of Operating Margin(i) to Net Income |
||||||||
Nine Months Ended September 30, 2021 | ||||||||
Revenues from | ||||||||
Mining | Production | Operating | ||||||
Operations | Costs | Margin | ||||||
LaRonde mine | $ 505,105 | $ (169,990) | $ 335,115 | |||||
LaRonde Zone 5 mine | 89,108 | (41,809) | 47,299 | |||||
Canadian Malartic mine(ii) | 488,085 | (181,319) | 306,766 | |||||
Goldex mine | 177,038 | (70,997) | 106,041 | |||||
Meliadine mine(iii) | 493,579 | (181,547) | 312,032 | |||||
Meadowbank complex(iii) | 453,221 | (295,121) | 158,100 | |||||
Hope Bay mine | 101,234 | (63,975) | 37,259 | |||||
Kittila mine | 315,247 | (147,744) | 167,503 | |||||
Pinos Altos mine | 199,092 | (108,790) | 90,302 | |||||
Creston Mascota mine | 23,190 | (6,199) | 16,991 | |||||
La India mine | 73,195 | (38,562) | 34,633 | |||||
Segment totals | $ 2,918,094 | $ (1,306,053) | $ 1,612,041 | |||||
Corporate and other: | ||||||||
Exploration and corporate development | 110,792 | |||||||
Amortization of property, plant, and mine development(iii) | 546,510 | |||||||
General and administrative | 107,573 | |||||||
Finance costs | 68,209 | |||||||
Loss on derivative financial instruments | 35,366 | |||||||
Environmental remediation | (601) | |||||||
Foreign currency translation gain | (7,116) | |||||||
Other expenses | 7,806 | |||||||
Income and mining taxes expense | 282,915 | |||||||
Net income per consolidated interim condensed statements of income | $ 460,587 | |||||||
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 mine | ||||||||
(iii) Certain previously reported line items have been restated to reflect the retrospective application of IAS 16 | ||||||||
Reconciliation of Sustaining Capital Expenditures(i) and Development Capital Expenditures(i) to the Consolidated Statements of Cash Flows |
|||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
Sustaining capital expenditures(i)(ii)(iii) | $ 206,756 | $ 108,488 | $ 506,506 | $ 308,618 | |||||
Development capital expenditures(i)(iii) | 221,315 | 144,100 | 573,220 | 349,705 | |||||
Total Capital Expenditures | $ 428,071 | $ 252,588 | $ 1,079,726 | $ 658,323 | |||||
Working capital adjustments | 7,588 | (1,781) | 57,680 | 1,386 | |||||
Additions to property, plant and mine development per the consolidated statements of cash flows |
$ 435,659 | $ 250,807 | $ 1,137,406 | $ 659,709 | |||||
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) Certain previously reported line items have been restated to reflect the retrospective application of IAS 16 | |||||||||
(iii) Sustaining capital expenditures and development capital expenditures include capitalized exploration. | |||||||||
Reconciliation of Long-Term Debt to Net Debt |
|||
As at | As at | ||
September 30, 2022 | December 31, 2021 | ||
Current portion of long-term debt per the interim consolidated balance sheets | $ 100,000 | $ 225,000 | |
Non-current portion of long-term debt | 1,241,637 | 1,340,223 | |
Long-term debt | $ 1,341,637 | $ 1,565,223 | |
Adjustments: | |||
Cash and cash equivalents | $ (821,758) | $ (185,786) | |
Net Debt | $ 519,879 | $ 1,379,437 |
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