Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) reported financial and operating results for the third quarter of 2023.
“Agnico Eagle had another solid quarter with production and costs coming in as expected. The Canadian Malartic and Meadowbank complexes delivered strong results in the quarter, offsetting unscheduled mill downtime at Detour Lake and highlighting the benefit of our diverse portfolio of mines,” said Ammar Al-Joundi, Agnico Eagle’s President and Chief Executive Officer. “We are expecting a strong finish to the year and based on our year-to-date performance, we are well positioned to achieve our cost guidance and expect gold production to come in above the mid-point of our annual production guidance,” added Mr. Al-Joundi.
Third quarter 2023 highlights
_______________________ |
1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. 2 Total cash costs per ounce is a non-GAAP ratio that is not a standardized financial measure under IFRS and, unless otherwise specified, is reported on a by-product basis in this news release. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation of total cash costs to production costs on both a by-product and a co-product basis, see “Reconciliation of Non-GAAP Financial Performance Measures” and “Note Regarding Certain Measures of Performance” below. 3 AISC per ounce is a non-GAAP ratio that is not a standardized financial measure under the IFRS and, unless otherwise specified, is reported on a by-product basis in this news release. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to production costs and for all-in sustaining costs on both a by-product and co-product basis, see “Reconciliation of Non-GAAP Financial Performance Measures” below and “Note Regarding Certain Measures of Performance” below. 4 Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under IFRS. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to net income and net income per share see “Reconciliation of Non-GAAP Financial Performance Measures”and “Note Regarding Certain Measures of Performance” below. 5 Cash provided by operating activities before working capital adjustments is a non-GAAP measure that is not standardized financial measures under IFRS. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to net income and net income per share see “Reconciliation of Non-GAAP Financial Performance Measures”and “Note Regarding Certain Measures of Performance” below. |
Third Quarter 2023 Production and Cost Results
Production and Cost Results Summary* | ||||||
Three Months Ended | Nine Months Ended | |||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Gold production (ounces) | 850,429 | 816,795 | 2,536,446 | 2,335,569 | ||
Gold sales (ounces) | 843,097 | 830,246 | 2,489,503 | 2,359,691 | ||
Production costs per ounce | $ 893 | $ 804 | $ 850 | $ 846 | ||
Total cash costs per ounce | $ 898 | $ 779 | $ 857 | $ 769 | ||
AISC per ounce | $ 1,210 | $ 1,106 | $ 1,162 | $ 1,067 | ||
* Production results summary reflects i) Agnico Eagle’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% thereafter and ii) Agnico Eagle’s acquisition of the Detour Lake, Macassa and Fosterville mines on February 8, 2022. |
Gold Production
Production Costs per Ounce
Total Cash Costs per Ounce
AISC per Ounce
Third Quarter 2023 Financial Results
Financial Results Summary | ||||||
Three Months Ended | Nine Months Ended | |||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Realized gold price ($/ounce) | $ 1,928 | $ 1,726 | $ 1,933 | $ 1,821 | ||
Net income ($ millions) | $ 178.6 | $ 66.7 | $ 2,322.3 | $ 476.1 | ||
Adjusted net income ($ millions) | $ 219.9 | $ 222.5 | $ 813.6 | $ 829.1 | ||
EBITDA6 ($ millions) | $ 722.0 | $ 518.8 | $ 3,878.4 | $ 1,724.4 | ||
Adjusted EBITDA6 ($ millions) | $ 763.3 | $ 674.5 | $ 2,369.7 | $ 2,076.5 | ||
Cash provided by operating activities ($ millions) | $ 502.1 | $ 575.4 | $ 1,873.7 | $ 1,716.1 | ||
Cash provided by operating activities before working capital adjustments ($ millions) |
$ 668.7 | $ 558.4 | $ 1,970.5 | $ 1,630.3 | ||
Capital expenditures* | $ 406.4 | $ 428.1 | $ 1,164.2 | $ 1,079.7 | ||
Free cash flow7 ($ millions) | $ 82.3 | $ 139.8 | $ 645.3 | $ 578.7 | ||
Free cash flow before changes in non-cash components of working capital7 ($ millions) |
$ 248.8 | $ 122.7 | $ 742.1 | $ 492.9 | ||
Net income per share (basic) | $ 0.36 | $ 0.15 | $ 4.78 | $ 1.10 | ||
Adjusted net income per share (basic) | $ 0.44 | $ 0.49 | $ 1.67 | $ 1.92 | ||
Cash provided by operating activities before working capital adjustments (basic) |
$ 1.35 | $ 1.23 | $ 4.05 | $ 3.78 | ||
Cash provided by operating activities (basic) | $ 1.01 | $ 1.26 | $ 3.85 | $ 3.98 | ||
*Includes capitalized exploration |
Net Income
__________________________ |
6 “EBITDA” means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to net income see “Reconciliation of Non-GAAP Financial Performance Measures” and “Note Regarding Certain Measures of Performance” below. 7 Free cash flow and free cash flow before changes in non-cash components of working capital are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to Cash provided by operating activities see “Reconciliation of Non-GAAP Financial Performance Measures”and “Note Regarding Certain Measures of Performance” below. 8 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a reconciliation to net income see “Summary of Operations Key Performance Indicators” below. See also “Note Regarding Certain Measures of Performance”. |
Adjusted EBITDA
Cash Provided by Operating Activities
Capital Expenditures
Free Cash Flow Before Changes in Non-Cash Components of Working Capital
Investment Grade Balance Sheet Remains Strong
Net Debt9
Net Debt Summary | |||
As at | As at | ||
Sep 30, 2023 | Jun 30, 2023 | ||
Cash and cash equivalents ($ millions) | $ 355.5 | $ 432.5 | |
Current portion of long-term debt ($ million) | $ 100.0 | $ — | |
Long-term debt ($ millions) | $ 1,842.6 | $ 1,942.0 | |
Net debt ($ millions) | $ 1,587.1 | $ 1,509.5 |
Cash and cash equivalents decreased when compared to the prior quarter primarily due to lower cash provided by operating activities arising from increased working capital requirements from the seasonality of the Nunavut sealift. At September 30, 2023, the Company’s debt (current and long-term) was $1,942.6 million and, despite the Nunavut sealift, net debt only increased slightly to $1,587.1 million from the June 30, 2023 balance of $1,509.5 million.
As of September 30, 2023, the outstanding balance on the Company’s unsecured revolving bank credit facility remained at $100 million, and available liquidity under this facility was approximately $1.1 billion, not including the uncommitted $600 million accordion feature.
Hedges
The Company continues to benefit from a stronger US dollar against the currencies in the jurisdictions in which it operates; the Canadian dollar, Euro, Australian dollar and Mexican peso. These currency tailwinds have provided some relief against inflationary pressures. Approximately 64% of the Company’s estimated Canadian dollar exposure for the remainder of the year is hedged at an average floor price above 1.32 C$/US$. Approximately 29% of the Company’s estimated Euro exposure for the remainder of the year is hedged at an average floor price of approximately 1.03 US$/EUR. Approximately 58% of the Company’s estimated Australian dollar exposure for the remainder of the year is hedged at an average floor price above 1.46 A$/US$. Approximately 33% of the Company’s estimated Mexican peso exposure for the remainder of the year is hedged at an average floor price above 20.70 MXP/US$. The Company’s full year 2023 cost guidance is based on assumed exchange rates of 1.32 C$/US$, 1.10 US$/EUR, 1.40 A$/US$ and 20.00 MXP/US$.
With the 2023 sealift purchase of diesel for the Company’s Nunavut operations completed, approximately 72% of the Company’s diesel exposure for the remainder of the year is hedged at an average price of $0.70 per litre, compared to the 2023 cost guidance assumption of $0.93 per litre. The sea-lift purchase, along with financial hedges, will continue to help mitigate operating cost risks and are expected to provide protection against diesel price inflation for the remainder of the year.
The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2023 and future guidance.
_____________________ |
9 Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to long-term debt, see “Reconciliation of non-GAAP Financial Performance Measures” and “Note Regarding Certain Measures of Performance” below. |
Capital Expenditures
The following table sets out capital expenditures (including sustaining capital expenditures10 and development capital expenditures10) and capitalized exploration in the third quarter of 2023. Total expected capital expenditures (including capitalized exploration) remain in line with guidance for the full year 2023.
Capital Expenditures | |||||
(In thousands of U.S. dollars) | |||||
Capital Expenditures* | Capitalized Exploration | ||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | ||
Sep 30, 2023 | Sep 30, 2023 | Sep 30, 2023 | Sep 30, 2023 | ||
Sustaining Capital Expenditures | |||||
LaRonde complex | 20,686 | 56,213 | 713 | 1,609 | |
Canadian Malartic complex** | 21,549 | 72,219 | — | — | |
Goldex mine | 6,212 | 14,378 | 264 | 558 | |
Detour Lake mine | 68,680 | 182,642 | — | — | |
Macassa mine | 12,963 | 27,999 | 634 | 1,142 | |
Meliadine mine | 21,997 | 48,913 | 1,244 | 5,118 | |
Meadowbank complex | 29,101 | 100,356 | — | — | |
Hope Bay project | — | 147 | — | — | |
Fosterville mine | 9,852 | 24,773 | 205 | 551 | |
Kittila mine | 10,347 | 31,567 | 386 | 1,459 | |
Pinos Altos mine | 5,777 | 21,836 | 665 | 1,263 | |
La India mine | 23 | 94 | — | 6 | |
Total Sustaining Capital | $ 207,187 | $ 581,137 | $ 4,111 | $ 11,706 | |
Development Capital Expenditures | |||||
LaRonde complex | 18,186 | 51,293 | — | — | |
Canadian Malartic complex** | 36,169 | 112,535 | 2,972 | 6,545 | |
Goldex mine | 3,149 | 19,224 | 365 | 2,417 | |
Akasaba West project | 7,990 | 27,065 | — | — | |
Detour Lake mine | 33,906 | 81,289 | 7,662 | 24,944 | |
Macassa mine | 16,644 | 53,802 | 6,392 | 21,307 | |
Meliadine mine | 34,687 | 84,382 | 3,049 | 8,508 | |
Amaruq underground project | 47 | 357 | — | — | |
Hope Bay project | 1,099 | 4,298 | — | — | |
Fosterville mine | 9,988 | 21,702 | 3,810 | 14,500 | |
Kittila mine | 4,336 | 23,385 | 709 | 2,902 | |
Pinos Altos mine | (244) | 3,131 | 838 | 1,949 | |
Other | 3,374 | 5,829 | — | — | |
Total Development Capital | $ 169,331 | $ 488,292 | $ 25,797 | $ 83,072 | |
Total Capital Expenditures | $ 376,518 | $ 1,069,429 | $ 29,908 | $ 94,778 | |
* Excludes capitalized exploration | |||||
**The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter. |
__________________________ |
10 Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial measures under IFRS. For a discussion of the composition and usefulness of this non-GAAP measure as well as a reconciliation to additions to property, plant and mine development per the condensed interim consolidated statements of cash flows, see “Reconciliation of Non-GAAP Financial Performance Measures”and “Note Regarding Certain Measures of Performance” below. |
2023 Guidance
The Company believes it is on track to be above the mid-point of its 2023 gold production guidance of between 3.24 and 3.44 million ounces, which is based on the assumption that the Kittila mill operates at an annual rate of 1.6 mtpa. Through the first nine months of 2023, Kittila has maintained operational flexibility to process 2.0 mtpa in 2023. The SAC has informed the Company that it will issue its decision on Kittila’s operating permit in October 2023. If the SAC reverses the lower court ruling and reinstates the operating permit at 2.0 mtpa by the end of October 2023, the Company expects Kittila to produce up to an additional 30,000 ounces of gold in the fourth quarter of 2023 as compared to current production guidance. If the SAC does not release its decision by the end of October or upholds the lower court decision and maintains the current operating permit at 1.6 mtpa, the Company will be required to partially suspend its activities in the fourth quarter of 2023 to remain within the permitted rate. Kittila’s annual production is still expected to be within the annual guidance range of between 190,000 and 210,000 ounces of gold, which was based on a rate of 1.6 mtpa.
The Company also believes it is on track to meet its 2023 guidance for total cash costs per ounce and AISC per ounce of between $840 and $890 and between $1,140 and $1,190, respectively. Total expected capital expenditures (excluding capitalized exploration) for 2023 remain at approximately $1.42 billion.
The closing of the Yamana Transaction on March 31, 2023 resulted in a remeasurement of the Company’s previously-held 50% ownership of Canadian Malartic. This remeasurement will continue to affect the Company’s depreciation and amortization for the remainder of the year as 100% of the assets are re-measured to fair value. The 2023 depreciation and amortization expense guidance remains between $1.50 to $1.55 billion for the full year 2023.
Update on Key Value Drivers and Pipeline Projects
Highlights on the key value drivers (Odyssey project, Detour Lake mine and optimization of assets and infrastructure in the Abitibi region of Quebec), the Hope Bay project and the San Nicolás project are set out below. Details on certain mine expansion projects (Macassa new ventilation system, Kittila shaft, Meliadine Phase 2 expansion and Amaruq underground) are set out in the applicable operational sections of this news release.
Odyssey Project
Underground development and construction activities progressed well in the third quarter of 2023. The development rate has improved month over month, setting a monthly record of 1,030 equivalent metres achieved in September 2023. The Company is on track to reach the 1,200 metres per month rate target in 2024. The increased use of automated equipment continues to support the gain in development productivity, with scoops, jumbos and cable bolters remotely operated between shifts.
Advancing the main ramp remains the development priority for the project. In the first nine months of 2023, the Company achieved a lateral development rate of 166 metres per month, exceeding the target of 150 metres per month. As at September 30, 2023, the ramp was at a depth of 649 metres. At the current ramp development rate, the Company expects to reach the first level of the top of the East Gouldie deposit at a depth of 750 metres in the first half of 2024.
On Level 54, the position of the first shaft station, the development of the first underground maintenance shop is ongoing. The maintenance shop will include four maintenance bays, a fuel and lube bay, a warehouse and other service bays.
Shaft sinking activities continued to ramp-up through the third quarter of 2023, albeit at a slower rate than anticipated due to equipment reliability issues and water infiltration requiring grout injection. An action plan is in place to address equipment reliability and the Company anticipates the ramp up of sinking activities to achieve the target rate of 2.0 metres per day in the fourth quarter of 2023. With ramp development performance better-than-expected, the Company is advancing with the pre-sinking of two legs of the shaft from Levels 26 to 36 and Levels 54 to 64. The excavation of the leg between Levels 26 and 36 as well as the overcut on Level 54 are completed.
The paste backfill plant was commissioned in July 2023. The introduction of paste backfill facilitated an increase in production rates from 900 tpd in August 2023 to 3,300 tpd in September, approaching the planned mining rate of 3,500 tpd for 2024.
The integration of internal zones at Odyssey South demonstrated upside potential in tonnes and gold grade in the short term. The mining of the first four stopes resulted in a positive reconciliation of 18% in gold ounces compared to plan. The Company continues to advance the delineation drilling to help with the predictability and modeling of these zones.
Exploration drilling at the Odyssey project during the third quarter of 2023 continued to focus on three objectives: infill drilling the Odyssey South zone and adjacent internal zones; infill drilling the core portion of the East Gouldie zone; and investigating the lateral extensions along the favourable mineralized horizon to the east and the west. An addition of mineral reserves is expected at the Odyssey project at year-end 2023 with the conversion of indicated mineral resources at the East Gouldie deposit.
In regional exploration during the third quarter of 2023, the next phase of exploration drilling commenced at the adjacent Camflo property to the north and drilling targeted potential mineralization analogous to the Odyssey South and Odyssey North deposits on the Rand Malartic property to the east.
Detour Lake Mine
In the third quarter of 2023, the Detour Lake mine was affected by the failure of the transformer powering the SAG unit of one of the two grinding circuit lines. A detailed description of the incident and remediation actions taken by the Company is set out in the Detour Lake operational section of this news release.
Prior to the transformer failure, the mill availability was at 92%, reflecting sustained improvements to the maintenance strategy and a continued effort to optimize mill processes. At the time, throughput was also on track to achieve the expected level of 27.2 mtpa for 2023 and it is now expected to be approximately 25.9 mtpa for 2023.
In the third quarter of 2023, the Company continued to advance several projects to improve runtime of the mill and sustain throughput of 28.0 mtpa. Areas of focus include improvements to the secondary crusher re-feed system, the ball mill discharge Grizzly and the SAG discharge lip, as well as improvements to secondary crusher liner profiles to extend wear life and optimization of the secondary crusher.
The Company is also assessing several projects to potentially exceed mill throughput of 28.0 mtpa, including the implementation of advanced process control utilizing artificial intelligence (expert systems) and ore sorting. In the third quarter of 2023, the Company continued to operate an ore sorting pilot plant. The Company is targeting the pilot project to process approximately 1.5 million tonnes of low-grade material to establish the key design criteria of a full-size sorting plant and to help determine the economic viability of a full-size sorting operation at Detour Lake.
Exploration drilling during the third quarter of 2023 continued to investigate the deposit below the West Pit mineral reserve and the western plunge extension of the mineralization to confirm the mineralized zones potentially amenable to underground mining, with 53,283 metres of drilling completed during the third quarter or 181,822 metres completed during the first nine months of 2023.
Optimization of Assets and Infrastructure in the Abitibi Region
During the third quarter of 2023, the Company continued to advance the internal studies to assess potential production opportunities at the Macassa Near Surface (“NSUR”) and Amalgamated Kirkland (“AK”) deposits, and the Upper Beaver and Wasamac projects. Among the alternatives considered, the Company is evaluating the potential to transport ore via rail or truck to the LaRonde and Canadian Malartic processing facilities, which are expected to have excess mill capacity in the future. Leveraging existing regional infrastructure has the potential to support regional production growth at lower capital costs and with a reduced environmental footprint, which could also be beneficial to future permitting activities.
The NSUR and AK deposits are accessible from an existing surface ramp at Macassa. Production from the NSUR deposit was processed at the Macassa mill in the third quarter of 2023, with gold production of 2,778 ounces. Production from the AK deposit is expected to begin in the second half of 2024. With the commissioning of the Shaft #4 and increased productivity from the Macassa deep mine, the Macassa mill is expected to reach its full capacity of 1,650 tpd by mid-2024. The LaRonde Zone 5 (“LZ5”) processing facility at the LaRonde complex, which is approximately 130 kilometres away, was placed on care and maintenance in the third quarter of 2023. The facility could accommodate the processing of the NSUR and AK ores in 2024, thus avoiding capital costs associated with a mill expansion at Macassa. Average annual production from these two deposits could potentially be between 20,000 and 40,000 ounces of gold, commencing in 2024.
The Company is assessing the potential economic benefits of transporting and processing the ores from the Upper Beaver and Wasamac projects at either the LaRonde or Canadian Malartic processing facilities. Both mill complexes are close to existing road and rail infrastructure. A preliminary analysis of additional infrastructure that would be required to load, transport and unload ore for processing and the tailings required for paste backfill was completed in the third quarter of 2023. The Company initiated discussions with the rail operator to evaluate the operational feasibility and operating costs of this scenario. Both Upper Beaver and Wasamac have the potential to be low-cost mines with annual production of 150,000 to 200,000 ounces of gold with moderate capital outlays and initial production potentially commencing in approximately 2030 and 2029, respectively. The Company expects to consolidate the results of these various internal evaluations early in 2024 and report results through the first half of 2024.
Hope Bay – Step-Out Drilling Continues to Extend Madrid’s High-Grade Patch 7 Zone at Depth and Laterally
At the Hope Bay project, exploration continued during the third quarter of 2023 with seven drill rigs in operation targeting the Doris and Madrid-area deposits and regionally for a total of 31,074 metres completed in 46 drill holes, and 119,771 metres completed in 194 holes during the first nine months of 2023.
Exploration at Madrid remained focused on drilling wide step-out holes spaced approximately 200 metres apart into the underexplored 2-kilometre strike extension gap between the Suluk and Patch 7 deposits at depths between 400 and 700 metres, with a new highlight intercept in hole HBM23-109 of 15.9 g/t gold over 4.6 metres at 609 metres depth or approximately 300 metres beneath the Patch 7 mineral resource. The recent results and several occurrences of visual gold (assays pending) have extended this promising area of mineralization in the gap by an additional 300 metres to the south and up to 500 metres to the north, and indicate that gold mineralization may also extend south of Patch 7.
The exploration drilling programs at Doris and Madrid recently ramped down for the seasonal transition and are expected to resume at full capacity when the snow- and ice-based drilling will be suitable in January, with a continued focus on the wide step-out strategy at Madrid to assess the mineral resource potential of the gap between Suluk and Patch 7 as well as the area south of Patch 7.
The objective of the exploration program remains to grow the mineral resources at Doris and Madrid to support future project studies and potentially resume mining at Hope Bay. In the meantime, technical studies continue to progress while larger production scenarios for Hope Bay are being evaluated.
San Nicolás Project
In the third quarter of 2023, Minera de San Nicolás, which is jointly owned by the Company and Teck Resources Limited, continued to work on the feasibility study at San Nicolás in Zacatecas State, Mexico, and stakeholder engagement on the permitting process.
Environment, Social and Governance Performance Summary
Environment and Permitting
Community Relations, Governance and People
Dividend Record and Payment Dates for the Third Quarter of 2023
Agnico Eagle’s Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on December 15, 2023 to shareholders of record as of December 1, 2023. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2023 Fiscal Year
Record Date | Payment Date |
March 1, 2023* | March 15, 2023* |
June 1, 2023* | June 15, 2023* |
September 1, 2023* | September 15, 2023* |
December 1, 2023** | December 15, 2023** |
*Paid | |
**Declared |
Dividend Reinvestment Plan
See the following link for information on the Company’s dividend reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company’s international dividend currency exchange program, please contact Computershare Trust Company of Canada by phone at 1-800-564-6253 or online at www.investorcentre.com or www.computershare.com/investor.
ABITIBI REGION, QUEBEC
LaRonde Complex – LaRonde Complex Celebrates 35th Anniversary; Quarterly Gold Production Affected by Planned Mill Shutdown and Maintenance of Ore Handling System; Mining at the 11-3 Zone Commences
LaRonde Complex – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 627 | 711 | 1,995 | 2,158 | ||
Tonnes of ore milled per day | 6,815 | 7,728 | 7,308 | 7,905 | ||
Gold grade (g/t) | 3.43 | 3.83 | 3.66 | 4.22 | ||
Gold production (ounces) | 64,496 | 82,621 | 220,883 | 276,168 | ||
Production costs per tonne (C$) | $ 182 | $ 187 | $ 157 | $ 128 | ||
Minesite costs per tonne (C$)11 | $ 147 | $ 131 | $ 151 | $ 125 | ||
Production costs per ounce of gold produced | $ 1,321 | $ 1,234 | $ 1,054 | $ 781 | ||
Total cash costs per ounce of gold produced | $ 972 | $ 818 | $ 937 | $ 666 |
Gold Production
_____________________________________ |
11 Minesite costs per tonne is a non-GAAP measure that does not have a standardized meaning under IFRS. For a description of the composition and usefulness of this non-GAAP measure, as well as a reconciliation to production costs see “Reconciliation of Non-GAAP Performance Measures” and “Note Regarding Certain Measures of Performance” below. |
Production Costs
Minesite and Total Cash Costs
Highlights
Canadian Malartic Complex – Strong Quarterly Gold Production Driven by Higher Grades and Tonnes Milled at the Barnat Pit; Production from Odyssey Underground Continues to Ramp Up
Canadian Malartic Complex – Operating Statistics* | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 4,911 | 4,968 | 14,317 | 14,590 | ||
Tonnes of ore milled per day | 53,380 | 54,000 | 52,443 | 53,443 | ||
Gold grade (g/t) | 1.22 | 1.04 | 1.22 | 1.14 | ||
Gold production* (ounces) | 177,243 | 75,262 | 435,683 | 242,957 | ||
Production costs per tonne (C$) | $ 34 | $ 30 | $ 36 | $ 30 | ||
Minesite costs per tonne (C$) | $ 39 | $ 33 | $ 39 | $ 34 | ||
Production costs per ounce of gold produced | $ 708 | $ 777 | $ 750 | $ 707 | ||
Total cash costs per ounce of gold produced | $ 805 | $ 820 | $ 789 | $ 787 | ||
* Gold production reflects Agnico Eagle’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% thereafter. |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Goldex – Steady Operational Performance in the Third Quarter of 2023; First Production at South Zone Sector 3 Provides Operational Flexibility; Exploration Drilling Expected to Further Increase Mineral Resources
Goldex Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 756 | 710 | 2,215 | 2,192 | ||
Tonnes of ore milled per day | 8,217 | 7,717 | 8,114 | 8,029 | ||
Gold grade (g/t) | 1.69 | 1.67 | 1.72 | 1.68 | ||
Gold production (ounces) | 35,880 | 33,889 | 107,619 | 105,211 | ||
Production costs per tonne (C$) | $ 51 | $ 48 | $ 52 | $ 46 | ||
Minesite costs per tonne (C$) | $ 52 | $ 49 | $ 52 | $ 47 | ||
Production costs per ounce of gold produced | $ 803 | $ 776 | $ 788 | $ 751 | ||
Total cash costs per ounce of gold produced | $ 822 | $ 804 | $ 802 | $ 765 |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
ABITIBI REGION, ONTARIO
Detour Lake – Lower Mill Production Due to Temporary Transformer Issue; Continued Focus on Mill Optimization to Achieve 28.0 mtpa by 2025
Detour Lake Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Jun 30, 2022* | |||
Tonnes of ore milled (thousands of tonnes) | 5,630 | 6,505 | 18,827 | 16,294 | ||
Tonnes of ore milled per day | 61,196 | 70,701 | 68,963 | 69,334 | ||
Gold grade (g/t) | 0.93 | 0.91 | 0.88 | 0.98 | ||
Gold production (ounces) | 152,762 | 175,487 | 483,971 | 471,445 | ||
Production costs per tonne (C$) | $ 25 | $ 23 | $ 24 | $ 29 | ||
Minesite costs per tonne (C$) | $ 25 | $ 25 | $ 26 | $ 24 | ||
Production costs per ounce of gold produced | $ 696 | $ 648 | $ 688 | $ 787 | ||
Total cash costs per ounce of gold produced | $ 755 | $ 691 | $ 752 | $ 650 | ||
*For the Nine Months Ended September 30, 2022, the operating statistics are reported for the period from February 8, 2022 (the date of the Merger) to September 30, 2022. |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Temporary Transformer issue at Detour Lake resulted in unscheduled mill downtime
A transformer supplying power to the SAG unit on one of the two grinding circuits at the mill, which had been in continuous operation for approximately a decade, suffered an unexpected failure in August 2023. Ordinarily, transformers of this kind are expected to have a service life of over 20 years. A spare transformer was installed as a replacement, but it malfunctioned after 16 hours of operation. The current results of the investigations carried out by both the Company and external experts point to no issue other than a transformer failure.
By capitalizing on its procurement network within the Abitibi region, the Company managed to refurbish one of the malfunctioning transformers in 25 days and also secure a spare transformer which is expected to be delivered to the site by the end of October.
During the unplanned SAG unit downtime on Line 1, the company mitigated the reduced throughput by bypassing the affected SAG unit and redistributing the load between the two grinding circuits. As a result, the operation continued at approximately 70% of its normal operating capacity.
The refurbished transformer was installed and commissioned in mid-September, with the operations returning to normal levels in the second half of September 2023. The Company expects higher gold grades at Detour Lake in the fourth quarter of 2023 and, considering the gold production in the first nine months of 2023, the Company expects Detour Lake to achieve the low end of its annual production guidance.
Out of an abundance of caution, the Company has opted to increase the level of redundancy by planning to have two spares available and has ordered two additional new transformers. To further safeguard these critical transformers against premature failure, the Company has also increased the level of monitoring of the operating and spare transformers by implementing an internal data acquisition system to continuously monitor and record key system parameters, such as current, voltage and frequency.
Macassa – Sustained Productivity Gains Result in Robust Operational Performance and Lowest Minesite Costs per Tonne Since the Merger; Exploration Remains Focused on Mineral Resource Expansion
Macassa Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Jun 30, 2022* | |||
Tonnes of ore milled (thousands of tonnes) | 112 | 75 | 311 | 210 | ||
Tonnes of ore milled per day | 1,217 | 814 | 1,139 | 894 | ||
Gold grade (g/t) | 13.35 | 21.89 | 17.16 | 20.77 | ||
Gold production (ounces) | 46,792 | 51,775 | 167,951 | 137,525 | ||
Production costs per tonne (C$) | $ 433 | $ 588 | $ 488 | $ 605 | ||
Minesite costs per tonne (C$) | $ 476 | $ 628 | $ 516 | $ 559 | ||
Production costs per ounce of gold produced | $ 766 | $ 648 | $ 669 | $ 719 | ||
Total cash costs per ounce of gold produced | $ 841 | $ 689 | $ 719 | $ 659 | ||
*For the Nine Months Ended September 30, 2022, the operating statistics are reported for the period from February 8, 2022 (the date of the Merger) to September 30, 2022. |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
NUNAVUT
Meliadine Mine – Strong Mill Performance Continued in the Third Quarter of 2023; Phase 2 Expansion Project on Schedule; Exploration at Depth Continues to Yield Positive Results
Meliadine Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2023 | Sep 30, 2023 | Sep 30, 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 470 | 401 | 1,407 | 1,282 | ||
Tonnes of ore milled per day | 5,109 | 4,359 | 5,154 | 4,696 | ||
Gold grade (g/t) | 6.17 | 7.33 | 6.15 | 6.77 | ||
Gold production (ounces) | 89,707 | 91,201 | 267,856 | 269,477 | ||
Production costs per tonne (C$) | $ 254 | $ 229 | $ 237 | $ 235 | ||
Minesite costs per tonne (C$) | $ 248 | $ 226 | $ 249 | $ 234 | ||
Production costs per ounce of gold produced | $ 994 | $ 788 | $ 930 | $ 879 | ||
Total cash costs per ounce of gold produced | $ 971 | $ 777 | $ 975 | $ 866 |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
Meadowbank Complex – Robust Overall Operational Performance; Record Haulage of Underground Ore; Work Ongoing to Potentially Extend Mine Life Beyond 2027
Meadowbank Complex – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 1,077 | 1,031 | 2,905 | 2,816 | ||
Tonnes of ore milled per day | 11,707 | 11,207 | 10,641 | 10,315 | ||
Gold grade (g/t) | 3.76 | 4.11 | 3.82 | 3.37 | ||
Gold production (ounces) | 116,555 | 122,994 | 322,440 | 279,457 | ||
Production costs per tonne (C$) | $ 167 | $ 135 | $ 176 | $ 141 | ||
Minesite costs per tonne (C$) | $ 178 | $ 144 | $ 177 | $ 147 | ||
Production costs per ounce of gold produced | $ 1,149 | $ 894 | $ 1,183 | $ 1,124 | ||
Total cash costs per ounce of gold produced | $ 1,225 | $ 930 | $ 1,173 | $ 1,140 |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
AUSTRALIA
Fosterville – Solid Mine Development Performance; Gold Production Affected by Prioritization of Development Headings for Primary Ventilation Upgrade
Fosterville Mine – Operating Statistics* | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 144 | 172 | 468 | 385 | ||
Tonnes of ore milled per day | 1,565 | 1,868 | 1,714 | 1,640 | ||
Gold grade (g/t) | 13.22 | 15.11 | 15.48 | 20.46 | ||
Gold production (ounces) | 59,790 | 81,801 | 228,161 | 249,693 | ||
Production costs per tonne (A$) | $ 291 | $ 306 | $ 322 | $ 627 | ||
Minesite costs per tonne (A$) | $ 304 | $ 305 | $ 316 | $ 340 | ||
Production costs per ounce of gold produced | $ 461 | $ 418 | $ 438 | $ 683 | ||
Total cash costs per ounce of gold produced | $ 495 | $ 435 | $ 437 | $ 365 | ||
*For the Nine Months Ended September 30, 2022, the operating statistics are reported for the period from February 8, 2022 (the date of the Merger) to September 30, 2022. |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
FINLAND
Kittila – Record Monthly Mill Throughput set in July 2023; Production Hoist Commissioned in September 2023
Kittila Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 527 | 487 | 1,440 | 1,504 | ||
Tonnes of ore milled per day | 5,728 | 5,293 | 5,275 | 5,509 | ||
Gold grade (g/t) | 4.20 | 4.56 | 4.45 | 4.19 | ||
Gold production (ounces) | 59,408 | 61,901 | 173,230 | 172,223 | ||
Production costs per tonne (EUR) | € 101 | € 104 | € 100 | € 96 | ||
Minesite costs per tonne (EUR) | € 99 | € 100 | € 100 | € 92 | ||
Production costs per ounce of gold produced | $ 986 | $ 834 | $ 896 | $ 896 | ||
Total cash costs per ounce of gold produced | $ 930 | $ 843 | $ 875 | $ 889 |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
MEXICO
Pinos Altos – Gold Production on Target with Solid Operating Performance Offsetting Lower Gold Grades; Production from San Eligio Mine Commenced
Pinos Altos Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 450 | 378 | 1,215 | 1,128 | ||
Tonnes of ore milled per day | 4,891 | 4,109 | 4,451 | 4,132 | ||
Gold grade (g/t) | 1.84 | 1.98 | 1.92 | 2.05 | ||
Gold production (ounces) | 25,386 | 23,041 | 71,679 | 71,231 | ||
Production costs per tonne | $ 89 | $ 91 | $ 89 | $ 95 | ||
Minesite costs per tonne | $ 85 | $ 92 | $ 88 | $ 93 | ||
Production costs per ounce of gold produced | $ 1,581 | $ 1,498 | $ 1,504 | $ 1,501 | ||
Total cash costs per ounce of gold produced | $ 1,310 | $ 1,295 | $ 1,236 | $ 1,247 |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
La India – Gold Production ahead of Forecast from Strong Operating Performance and Higher Gold Grades
La India Mine – Operating Statistics | Three Months Ended | Nine Months Ended | ||||
Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2023 | Sep 30, 2022 | |||
Tonnes of ore milled (thousands of tonnes) | 970 | 1,045 | 2,510 | 3,964 | ||
Tonnes of ore milled per day | 10,543 | 11,359 | 9,194 | 14,520 | ||
Gold grade (g/t) | 1.1 | 0.72 | 0.86 | 0.59 | ||
Gold production (ounces) | 22,269 | 16,285 | 56,423 | 58,003 | ||
Production costs per tonne | $ 29 | $ 19 | $ 29 | $ 14 | ||
Minesite costs per tonne | $ 27 | $ 19 | $ 29 | $ 14 | ||
Production costs per ounce of gold produced | $ 1,271 | $ 1,246 | $ 1,277 | $ 956 | ||
Total cash costs per ounce of gold produced | $ 1,156 | $ 1,196 | $ 1,272 | $ 966 |
Gold Production
Production Costs
Minesite and Total Cash Costs
Highlights
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The Company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
APPENDIX
Recent selected exploration drill results from Meliadine, Hope Bay, Fosterville and Kittila
Drill hole | Location | From (metres) |
To (metres) |
Depth of midpoint below surface (metres) |
Estimated true width (metres) |
Gold grade
(g/t) (uncapped) |
Gold grade
(g/t) (capped)* |
ML425-9563-D21 | Meliadine / Tiriganiaq / Lode 1000 |
341.0 | 344.5 | 757 | 3.1 | 11.4 | 11.4 |
HBM23-109 | HB / Madrid / Patch 7 | 734.0 | 740.5 | 609 | 4.6 | 15.9 | 15.9 |
UDH4761 | Fosterville / Cardinal | 386.8 | 398.9 | 1,828 | 10.0 | 10.8 | 10.8 |
SUU23004 | Kittila / East Zone | 221.1 | 231.6 | 208 | 9.9 | 11.8 | 11.8 |
including | 221.1 | 226.2 | 206 | 4.8 | 18.2 | 18.2 | |
*Results from the Meliadine mine use a capping factor of 250 g/t gold for Tiriganiaq Lode 1000; Results from Madrid-area deposits at Hope Bay use a capping factor of 50 g/t gold. Results from Fosterville and Kittila are uncapped. |
EXPLORATION DRILL COLLAR COORDINATES
Drill hole | UTM East* | UTM North* | Elevation (metres above sea level) |
Azimuth (degrees) | Dip
(degrees) |
Length (metres) |
Meliadine | ||||||
ML425-9563-D21 | 539563 | 6988914 | -406 | 221 | -64 | 402 |
Hope Bay | ||||||
HBM23-109 | 434896 | 7547948 | 33 | 65 | -72 | 987 |
Fosterville | ||||||
UDH4761 | 1,544 | 5,071 | 3,710 | 102 | -75 | 465 |
Kittila | ||||||
SUU23004 | 2558935 | 7536649 | 207 | 267 | -60 | 330 |
*Coordinate Systems: NAD 1983 UTM Zone 14N for Meliadine; NAD 1983 UTM Zone 13N for Hope Bay; Mine grid including elevation for Fosterville, which is located in MGA94 Zone 55; Finnish Coordinate System KKJ Zone 2 for Kittila. |
APPENDIX – FINANCIAL INFORMATION
AGNICO EAGLE MINES LIMITED | ||||||||||||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | ||||||||||||
(thousands of United States dollars, except where noted) | ||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||
2023 | 2022(i) | 2023 | 2022(i) | |||||||||
Net income – key line items: | ||||||||||||
Revenue from mine operations: | ||||||||||||
Quebec | ||||||||||||
LaRonde mine | 126,899 | 161,091 | 362,984 | 435,322 | ||||||||
LaRonde Zone 5 mine | 33,290 | 38,203 | 99,370 | 96,591 | ||||||||
Canadian Malartic complex(iii) | 320,044 | 131,421 | 793,989 | 428,526 | ||||||||
Goldex mine | 68,467 | 58,672 | 209,802 | 190,193 | ||||||||
Ontario | ||||||||||||
Detour Lake mine | 288,156 | 284,570 | 911,819 | 884,863 | ||||||||
Macassa mine | 85,407 | 87,827 | 316,145 | 252,075 | ||||||||
Nunavut | ||||||||||||
Meliadine mine | 180,344 | 155,299 | 507,057 | 501,383 | ||||||||
Meadowbank complex | 210,843 | 206,997 | 616,512 | 473,927 | ||||||||
Hope Bay project | — | — | — | 144 | ||||||||
Australia | ||||||||||||
Fosterville mine | 116,916 | 137,671 | 454,291 | 506,273 | ||||||||
Europe | ||||||||||||
Kittila mine | 113,729 | 110,384 | 332,616 | 326,872 | ||||||||
Mexico | ||||||||||||
Pinos Altos mine | 54,390 | 45,543 | 156,227 | 148,870 | ||||||||
Creston Mascota mine | — | 1,131 | — | 4,049 | ||||||||
La India mine | 43,926 | 30,888 | 109,457 | 107,355 | ||||||||
Revenues from mining operations | $ 1,642,411 | $ 1,449,697 | $ 4,870,269 | $ 4,356,443 | ||||||||
Production costs | 759,411 | 657,073 | 2,155,808 | 1,976,444 | ||||||||
Total operating margin(ii) | 883,000 | 792,624 | 2,714,461 | 2,379,999 | ||||||||
Amortization of property, plant and mine development | 414,994 | 283,486 | 1,100,215 | 809,021 | ||||||||
Revaluation gain(iv) | — | — | (1,543,414) | — | ||||||||
Exploration, corporate and other | 196,694 | 293,149 | 474,509 | 718,467 | ||||||||
Income before income and mining taxes | 271,312 | 215,989 | 2,683,151 | 852,511 | ||||||||
Income and mining taxes expense | 92,706 | 149,310 | 360,833 | 376,367 | ||||||||
Net income for the period | $ 178,606 | $ 66,679 | $ 2,322,318 | $ 476,144 | ||||||||
Net income per share — basic | $ 0.36 | $ 0.15 | $ 4.78 | $ 1.10 | ||||||||
Net income per share — diluted | $ 0.36 | $ 0.15 | $ 4.75 | $ 1.10 | ||||||||
Cash flows: | ||||||||||||
Cash provided by operating activities | $ 502,088 | $ 575,438 | $ 1,873,701 | $ 1,716,136 | ||||||||
Cash used in investing activities | $ (435,666) | $ (439,296) | $ (2,284,613) | $ (297,773) | ||||||||
Cash (used in) provided by financing activities | $ (144,239) | $ (317,985) | $ 109,843 | $ (780,150) | ||||||||
Realized prices: | ||||||||||||
Gold (per ounce) | $ 1,928 | $ 1,726 | $ 1,933 | $ 1,821 | ||||||||
Silver (per ounce) | $ 23.55 | $ 18.67 | $ 23.66 | $ 21.68 | ||||||||
Zinc (per tonne) | $ 2,360 | $ 3,435 | $ 2,746 | $ 3,623 | ||||||||
Copper (per tonne) | $ 8,223 | $ 5,674 | $ 8,740 | $ 8,438 | ||||||||
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, |
|||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Payable production(v): | ||||||||||||
Gold (ounces): | ||||||||||||
Quebec | ||||||||||||
LaRonde mine | 49,303 | 63,573 | 167,471 | 221,858 | ||||||||
LaRonde Zone 5 mine | 15,193 | 19,048 | 53,412 | 54,310 | ||||||||
Canadian Malartic complex(iii) | 177,243 | 75,262 | 435,683 | 242,957 | ||||||||
Goldex mine | 35,880 | 33,889 | 107,619 | 105,211 | ||||||||
Ontario | ||||||||||||
Detour Lake mine | 152,762 | 175,487 | 483,971 | 471,445 | ||||||||
Macassa mine | 46,792 | 51,775 | 167,951 | 137,525 | ||||||||
Nunavut | ||||||||||||
Meliadine mine | 89,707 | 91,201 | 267,856 | 269,477 | ||||||||
Meadowbank complex | 116,555 | 122,994 | 322,440 | 279,457 | ||||||||
Australia | ||||||||||||
Fosterville mine | 59,790 | 81,801 | 228,161 | 249,693 | ||||||||
Europe | ||||||||||||
Kittila mine | 59,408 | 61,901 | 173,230 | 172,223 | ||||||||
Mexico | ||||||||||||
Pinos Altos mine | 25,386 | 23,041 | 71,679 | 71,231 | ||||||||
Creston Mascota mine | 141 | 538 | 550 | 2,179 | ||||||||
La India mine | 22,269 | 16,285 | 56,423 | 58,003 | ||||||||
Total gold (ounces): | 850,429 | 816,795 | 2,536,446 | 2,335,569 | ||||||||
Silver (thousands of ounces) | 589 | 553 | 1,753 | 1,750 | ||||||||
Zinc (tonnes) | 1,420 | 2,108 | 6,318 | 5,745 | ||||||||
Copper (tonnes) | 659 | 653 | 1,935 | 2,200 | ||||||||
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, |
||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Payable metal sold(vi): | |||||||||||||
Gold (ounces): | |||||||||||||
Quebec | |||||||||||||
LaRonde mine | 62,413 | 89,667 | 172,495 | 221,930 | |||||||||
LaRonde Zone 5 mine | 17,748 | 22,304 | 52,132 | 53,437 | |||||||||
Canadian Malartic complex(iii) | 164,974 | 75,067 | 405,040 | 232,495 | |||||||||
Goldex mine | 35,517 | 34,019 | 108,548 | 104,584 | |||||||||
Ontario | |||||||||||||
Detour Lake mine | 149,747 | 164,300 | 473,322 | 484,654 | |||||||||
Macassa mine | 44,400 | 50,739 | 164,430 | 138,319 | |||||||||
Nunavut | |||||||||||||
Meliadine mine | 93,426 | 89,652 | 262,165 | 274,778 | |||||||||
Meadowbank complex | 108,579 | 119,531 | 317,584 | 262,023 | |||||||||
Hope Bay mine | — | — | — | 98 | |||||||||
Australia | |||||||||||||
Fosterville mine | 60,750 | 79,458 | 235,250 | 274,585 | |||||||||
Europe | |||||||||||||
Kittila mine | 58,540 | 63,813 | 171,060 | 179,806 | |||||||||
Mexico | |||||||||||||
Pinos Altos mine | 24,543 | 23,436 | 71,134 | 72,953 | |||||||||
Creston Mascota mine | — | 650 | — | 2,104 | |||||||||
La India mine | 22,460 | 17,610 | 56,343 | 57,925 | |||||||||
Total gold (ounces): | 843,097 | 830,246 | 2,489,503 | 2,359,691 | |||||||||
Silver (thousands of ounces) | 571 | 598 | 1,720 | 1,769 | |||||||||
Zinc (tonnes) | 2,108 | 2,099 | 6,982 | 4,812 | |||||||||
Copper (tonnes) | 657 | 647 | 1,938 | 2,196 | |||||||||
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, |
||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Total cash costs per ounce of gold produced — co-product basis(vii): | |||||||||||||
Quebec | |||||||||||||
LaRonde mine | $ 1,111 | $ 963 | $ 1,097 | $ 805 | |||||||||
LaRonde Zone 5 mine | 1,297 | 974 | 1,220 | 979 | |||||||||
Canadian Malartic complex(iii) | 814 | 835 | 800 | 803 | |||||||||
Goldex mine | 822 | 805 | 802 | 765 | |||||||||
Ontario | |||||||||||||
Detour Lake mine | 757 | 695 | 755 | 657 | |||||||||
Macassa mine | 843 | 691 | 722 | 661 | |||||||||
Nunavut | |||||||||||||
Meliadine mine | 972 | 779 | 977 | 869 | |||||||||
Meadowbank complex | 1,229 | 935 | 1,180 | 1,145 | |||||||||
Australia | |||||||||||||
Fosterville mine | 497 | 436 | 438 | 366 | |||||||||
Europe | |||||||||||||
Kittila mine | 931 | 844 | 877 | 891 | |||||||||
Mexico | |||||||||||||
Pinos Altos mine | 1,606 | 1,520 | 1,512 | 1,479 | |||||||||
Creston Mascota mine | — | 1,167 | — | 803 | |||||||||
La India mine | 1,174 | 1,211 | 1,292 | 990 | |||||||||
Weighted average total cash costs per ounce of gold produced | $ 924 | $ 804 | $ 885 | $ 801 | |||||||||
Total cash costs per ounce of gold produced — by-product basis(vii): | |||||||||||||
Quebec | |||||||||||||
LaRonde mine | $ 875 | $ 773 | $ 850 | $ 590 | |||||||||
LaRonde Zone 5 mine | 1,287 | 973 | 1,207 | 976 | |||||||||
Canadian Malartic complex(iii) | 805 | 820 | 789 | 787 | |||||||||
Goldex mine | 822 | 804 | 802 | 765 | |||||||||
Ontario | |||||||||||||
Detour Lake mine | 755 | 691 | 752 | 650 | |||||||||
Macassa mine | 841 | 689 | 719 | 659 | |||||||||
Nunavut | |||||||||||||
Meliadine mine | 971 | 777 | 975 | 866 | |||||||||
Meadowbank complex | 1,225 | 930 | 1,173 | 1,140 | |||||||||
Australia | |||||||||||||
Fosterville mine | 495 | 435 | 437 | 365 | |||||||||
Europe | |||||||||||||
Kittila mine | 930 | 843 | 875 | 889 | |||||||||
Mexico | |||||||||||||
Pinos Altos mine | 1,310 | 1,295 | 1,236 | 1,247 | |||||||||
Creston Mascota mine | — | 1,188 | — | 744 | |||||||||
La India mine | 1,156 | 1,196 | 1,272 | 966 | |||||||||
Weighted average total cash costs per ounce of gold produced | $ 898 | $ 779 | $ 857 | $ 769 | |||||||||
Notes: | ||||||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger | ||||||||||
(ii) Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers | ||||||||||
(iii) The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter | ||||||||||
(iv) Revaluation gain on the 50% interest the Company owned in Canadian Malartic complex prior to the Yamana Transaction | ||||||||||
(v) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period | ||||||||||
(vi) The Canadian Malartic complex’s payable metal sold excludes the 5.0% net smelter return royalty held by Osisko Gold Royalties Ltd. The Detour Lake mine’s payable metal sold excludes the 2% net smelter royalty held by Franco-Nevada Corporation. The Macassa mine’s payable metal sold excludes the 1.5% net smelter royalty held by Franco-Nevada Corporation | ||||||||||
(vii) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Reconciliation of Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne andNote Regarding Certain Measures of Performance for more information on the Company’s calculation and use of total cash cost per ounce of gold produced | ||||||||||
AGNICO EAGLE MINES LIMITED |
||||||||||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | ||||||||||
(thousands of United States dollars, except share amounts, IFRS basis) | ||||||||||
(Unaudited)
|
||||||||||
As at | As at | |||||||||
September 30, 2023 | December 31, 2022 | |||||||||
ASSETS | ||||||||||
Current assets: | ||||||||||
Cash and cash equivalents | $ 355,491 | $ 658,625 | ||||||||
Trade receivables | 7,569 | 8,579 | ||||||||
Inventories | 1,403,677 | 1,209,075 | ||||||||
Income taxes recoverable | 47,067 | 35,054 | ||||||||
Fair value of derivative financial instruments | 7,326 | 8,774 | ||||||||
Other current assets | 371,039 | 259,952 | ||||||||
Total current assets | 2,192,169 | 2,180,059 | ||||||||
Non-current assets: | ||||||||||
Goodwill | 4,576,454 | 2,044,123 | ||||||||
Property, plant and mine development | 21,426,291 | 18,459,400 | ||||||||
Investments | 284,689 | 332,742 | ||||||||
Deferred income and mining tax asset | 13,517 | 11,574 | ||||||||
Other assets | 732,561 | 466,910 | ||||||||
Total assets | $ 29,225,681 | $ 23,494,808 | ||||||||
LIABILITIES | ||||||||||
Current liabilities: | ||||||||||
Accounts payable and accrued liabilities | $ 756,067 | $ 672,503 | ||||||||
Share based liabilities | 11,765 | 15,148 | ||||||||
Interest payable | 19,405 | 16,496 | ||||||||
Income taxes payable | 86,261 | 4,187 | ||||||||
Current portion of long-term debt | 100,000 | 100,000 | ||||||||
Reclamation provision | 39,022 | 23,508 | ||||||||
Lease obligations | 48,762 | 36,466 | ||||||||
Fair value of derivative financial instruments | 41,778 | 78,114 | ||||||||
Total current liabilities | 1,103,060 | 946,422 | ||||||||
Non-current liabilities: | ||||||||||
Long-term debt | 1,842,553 | 1,242,070 | ||||||||
Reclamation provision | 902,939 | 878,328 | ||||||||
Lease obligations | 116,534 | 114,876 | ||||||||
Share based liabilities | 9,997 | 17,277 | ||||||||
Deferred income and mining tax liabilities | 4,952,007 | 3,981,875 | ||||||||
Other liabilities | 365,325 | 72,615 | ||||||||
Total liabilities | 9,292,415 | 7,253,463 | ||||||||
EQUITY | ||||||||||
Common shares: | ||||||||||
Outstanding — 496,523,603 common shares issued, less 460,079 shares held in trust | 18,279,698 | 16,251,221 | ||||||||
Stock options | 202,691 | 197,430 | ||||||||
Contributed surplus | 22,074 | 23,280 | ||||||||
Retained earnings (deficit) | 1,539,065 | (201,580) | ||||||||
Other reserves | (110,262) | (29,006) | ||||||||
Total equity | 19,933,266 | 16,241,345 | ||||||||
Total liabilities and equity | $ 29,225,681 | $ 23,494,808 | ||||||||
AGNICO EAGLE MINES LIMITED |
|||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME | |||||||
(thousands of United States dollars, except per share amounts, IFRS basis) | |||||||
(Unaudited)
|
|||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||
2023 | 2022 | 2023 | 2022 | ||||
Restated(i) | Restated(i) | ||||||
REVENUES | |||||||
Revenues from mining operations | $ 1,642,411 | $ 1,449,697 | $ 4,870,269 | $ 4,356,443 | |||
COSTS, INCOME AND EXPENSES | |||||||
Production(ii) | 759,411 | 657,073 | 2,155,808 | 1,976,444 | |||
Exploration and corporate development | 61,594 | 64,001 | 169,784 | 200,195 | |||
Amortization of property, plant and mine development | 414,994 | 283,486 | 1,100,215 | 809,021 | |||
General and administrative | 38,930 | 49,462 | 134,450 | 166,279 | |||
Finance costs | 35,704 | 19,278 | 94,989 | 62,892 | |||
Loss on derivative financial instruments | 34,010 | 162,374 | 1,038 | 174,463 | |||
Foreign currency translation gain | (6,492) | (15,479) | (2,258) | (27,761) | |||
Care and maintenance | 12,361 | 10,538 | 33,017 | 30,251 | |||
Revaluation gain(iii) | — | — | (1,543,414) | — | |||
Other expenses | 20,587 | 2,975 | 43,489 | 112,148 | |||
Income before income and mining taxes | 271,312 | 215,989 | 2,683,151 | 852,511 | |||
Income and mining taxes expense | 92,706 | 149,310 | 360,833 | 376,367 | |||
Net income for the period | $ 178,606 | $ 66,679 | $ 2,322,318 | $ 476,144 | |||
Net income per share – basic | $ 0.36 | $ 0.15 | $ 4.78 | $ 1.10 | |||
Net income per share – diluted | $ 0.36 | $ 0.15 | $ 4.75 | $ 1.10 | |||
Adjusted net income per share – basic(iv) | $ 0.44 | $ 0.49 | $ 1.67 | $ 1.92 | |||
Adjusted net income per share – diluted(iv) | $ 0.44 | $ 0.49 | $ 1.66 | $ 1.92 | |||
Weighted average number of common shares outstanding (in thousands): | |||||||
Basic | 495,286 | 455,157 | 486,131 | 431,718 | |||
Diluted | 496,404 | 456,274 | 487,442 | 433,087 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger. | |||||||
(ii) Exclusive of amortization, which is shown separately. | |||||||
(iii) Revaluation gain on the 50% interest previously owned in the Canadian Malartic complex. | |||||||
(iv) Refer to Reconciliation of Non-GAAP Financial Performance Measures in this Press Release for calculations supporting adjusted net income. |
AGNICO EAGLE MINES LIMITED |
|||||||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(thousands of United States dollars, IFRS basis)
|
|||||||
(Unaudited) | |||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||
2023 | 2022 | 2023 | 2022 | ||||
Restated(i) | Restated(i) | ||||||
OPERATING ACTIVITIES | |||||||
Net income for the period | $ 178,606 | $ 66,679 | $ 2,322,318 | $ 476,144 | |||
Add (deduct) adjusting items: | |||||||
Amortization of property, plant and mine development | 414,994 | 283,486 | 1,100,215 | 809,021 | |||
Revaluation gain(ii) | — | — | (1,543,414) | — | |||
Deferred income and mining taxes | 27,417 | 52,331 | 70,989 | 134,942 | |||
Unrealized loss (gain) on currency and commodity derivatives | 31,088 | 159,858 | (34,888) | 169,372 | |||
Unrealized loss (gain) on warrants | 6,802 | (5,688) | 9,098 | 14,494 | |||
Stock-based compensation | 11,939 | 13,805 | 38,466 | 43,012 | |||
Foreign currency translation gain | (6,492) | (15,479) | (2,258) | (27,761) | |||
Other | 9,380 | 5,670 | 20,030 | 21,541 | |||
Adjustment for settlement of reclamation provision | (5,078) | (2,298) | (10,077) | (10,434) | |||
Changes in non-cash working capital balances: | |||||||
Trade receivables | 2,572 | (24,295) | 8,037 | 14,540 | |||
Income taxes | (7,425) | 47,834 | 81,980 | 4,503 | |||
Inventories | (118,251) | (159,300) | (144,998) | 8,742 | |||
Other current assets | (6,099) | 73,459 | (94,984) | (44,406) | |||
Accounts payable and accrued liabilities | (49,432) | 72,905 | 51,427 | 97,950 | |||
Interest payable | 12,067 | 6,471 | 1,760 | 4,476 | |||
Cash provided by operating activities | 502,088 | 575,438 | 1,873,701 | 1,716,136 | |||
INVESTING ACTIVITIES | |||||||
Additions to property, plant and mine development | (419,832) | (435,659) | (1,228,387) | (1,137,406) | |||
Yamana transaction, net of cash and cash equivalents | — | — | (1,000,617) | — | |||
Contributions for acquisition of mineral assets | (10,950) | — | (10,950) | — | |||
Cash and cash equivalents acquired in Kirkland acquisition | — | — | — | 838,732 | |||
Purchases of equity securities and other investments | (7,962) | (4,936) | (52,126) | (36,790) | |||
Proceeds from loan repayment | — | — | — | 40,000 | |||
Other investing activities | 3,078 | 1,299 | 7,467 | (2,309) | |||
Cash used in investing activities | (435,666) | (439,296) | (2,284,613) | (297,773) | |||
FINANCING ACTIVITIES | |||||||
Proceeds from Credit Facility | 100,000 | — | 1,100,000 | 100,000 | |||
Repayment of Credit Facility | (100,000) | — | (1,000,000) | (100,000) | |||
Proceeds from Term Loan Facility, net of financing costs | — | — | 598,958 | — | |||
Repayment of Senior Notes | — | (100,000) | (100,000) | (225,000) | |||
Repayment of lease obligations | (13,465) | (8,239) | (35,633) | (25,025) | |||
Disbursements to associates | 21,899 | — | — | — | |||
Dividends paid | (161,259) | (160,121) | (482,680) | (464,704) | |||
Repurchase of common shares | — | (54,809) | (16,350) | (104,956) | |||
Proceeds on exercise of stock options | 471 | 63 | 23,523 | 24,008 | |||
Common shares issued | 8,115 | 5,121 | 22,025 | 15,527 | |||
Cash (used in) provided by financing activities | (144,239) | (317,985) | 109,843 | (780,150) | |||
Effect of exchange rate changes on cash and cash equivalents | 782 | (3,254) | (2,065) | (2,241) | |||
Net (decrease) increase in cash and cash equivalents during the period | (77,035) | (185,097) | (303,134) | 635,972 | |||
Cash and cash equivalents, beginning of period | 432,526 | 1,006,855 | 658,625 | 185,786 | |||
Cash and cash equivalents, end of period | $ 355,491 | $ 821,758 | $ 355,491 | $ 821,758 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Interest paid | $ 16,621 | $ 6,037 | $ 73,109 | $ 47,459 | |||
Income and mining taxes paid | $ 67,904 | $ 50,139 | $ 207,669 | $ 238,217 | |||
Notes: | |||||||
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger. | |||||||
(ii) Revaluation gain on the 50% interest previously owned in the Canadian Malartic complex.
|
AGNICO EAGLE MINES LIMITED |
|||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES | |||||||||||||
(thousands of United States dollars, except where noted) | |||||||||||||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company’s use of the non-GAAP measures total cash costs per ounce of gold produced and minesite costs per tonne | |||||||||||||
The following tables set out a reconciliation of total cash costs per ounce of gold produced (on both a by-product basis and co-product basis) and minesite costs per tonne to production costs, exclusive of amortization, as presented in the condensed interim consolidated statements of income in accordance with IFRS | |||||||||||||
Total Production Costs by Mine |
|||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||
(thousands of United States dollars) | 2023 | 2022 | 2023 | 2022 | |||||||||
Quebec | |||||||||||||
LaRonde mine | $ 66,477 | $ 83,911 | $ 170,153 | $ 163,701 | |||||||||
LaRonde Zone 5 mine | 18,715 | 18,066 | 62,702 | 51,932 | |||||||||
LaRonde complex | 85,192 | 101,977 | 232,855 | 215,633 | |||||||||
Canadian Malartic complex(i) | 125,455 | 58,516 | 326,936 | 171,858 | |||||||||
Goldex mine | 28,805 | 26,297 | 84,800 | 79,044 | |||||||||
Ontario | |||||||||||||
Detour Lake mine | 106,396 | 113,736 | 333,214 | 371,130 | |||||||||
Macassa mine | 35,864 | 33,533 | 112,368 | 98,848 | |||||||||
Nunavut | |||||||||||||
Meliadine mine | 89,210 | 71,830 | 249,221 | 236,895 | |||||||||
Meadowbank complex | 133,919 | 109,905 | 381,411 | 313,989 | |||||||||
Australia | |||||||||||||
Fosterville mine | 27,539 | 34,214 | 99,969 | 170,518 | |||||||||
Europe | |||||||||||||
Kittila mine | 58,569 | 51,622 | 155,200 | 154,388 | |||||||||
Mexico | |||||||||||||
Pinos Altos mine | 40,147 | 34,513 | 107,778 | 106,922 | |||||||||
Creston Mascota mine | — | 644 | — | 1,743 | |||||||||
La India mine | 28,315 | 20,286 | 72,056 | 55,476 | |||||||||
Production costs per the condensed interim consolidated statements of income | $ 759,411 | $ 657,073 | $ 2,155,808 | $ 1,976,444 | |||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine and Reconciliation of Production Costs to Minesite Costs perTonne by Mine
|
|||||||||||||
(thousands of United States dollars, except as noted) | |||||||||||||
LaRonde mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 49,303 | 63,573 | 167,471 | 221,858 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 66,477 | $ 1,348 | $ 83,911 | $ 1,320 | $ 170,153 | $ 1,016 | $ 163,701 | $ 738 | |||||
Inventory adjustments(ii) | (16,200) | (328) | (28,982) | (452) | (2,666) | (16) | 2,691 | 12 | |||||
Realized gains and losses on hedges of production costs | 317 | 6 | 2,052 | 32 | 2,165 | 13 | 1,440 | 6 | |||||
Other adjustments(v) | 4,178 | 85 | 3,986 | 63 | 14,081 | 84 | 10,827 | 49 | |||||
Cash operating costs (co-product basis) | $ 54,772 | $ 1,111 | $ 60,967 | $ 963 | $ 183,733 | $ 1,097 | $ 178,659 | $ 805 | |||||
By-product metal revenues | (11,627) | (236) | (11,916) | (190) | (41,316) | (247) | (47,777) | (215) | |||||
Cash operating costs (by-product basis) | $ 43,145 | $ 875 | $ 49,051 | $ 773 | $ 142,417 | $ 850 | $ 130,882 | $ 590 | |||||
LaRonde mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 365 | 416 | 1,101 | 1,293 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 66,477 | $ 182 | $ 83,911 | $ 202 | $ 170,153 | $ 155 | $ 163,701 | $ 127 | |||||
Production costs (C$) | C$ 89,228 | C$ 244 | C$ 109,561 | C$ 264 | C$ 228,662 | C$ 208 | C$ 210,893 | C$ 163 | |||||
Inventory adjustments (C$)(ii) | (19,881) | (54) | (37,841) | (91) | (1,455) | (1) | 372 | — | |||||
Other adjustments (C$)(v) | (2,752) | (8) | (2,328) | (6) | (9,195) | (9) | (9,205) | (7) | |||||
Minesite operating costs (C$) | C$ 66,595 | C$ 182 | C$ 69,392 | C$ 167 | C$ 218,012 | C$ 198 | C$ 202,060 | C$ 156 | |||||
LaRonde Zone 5 mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 15,193 | 19,048 | 53,412 | 54,310 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 18,715 | $ 1,232 | $ 18,066 | $ 948 | $ 62,702 | $ 1,174 | $ 51,932 | $ 956 | |||||
Inventory adjustments(ii) | 134 | 9 | (16) | (1) | (127) | (2) | 799 | 15 | |||||
Realized gains and losses on hedges of production costs | 106 | 7 | 478 | 25 | 722 | 13 | 335 | 6 | |||||
Other adjustments(v) | 753 | 49 | 33 | 2 | 1,864 | 35 | 82 | 2 | |||||
Cash operating costs (co-product basis) | $ 19,708 | $ 1,297 | $ 18,561 | $ 974 | $ 65,161 | $ 1,220 | $ 53,148 | $ 979 | |||||
By-product metal revenues | (152) | (10) | (35) | (1) | (698) | (13) | (154) | (3) | |||||
Cash operating costs (by-product basis) | $ 19,556 | $ 1,287 | $ 18,526 | $ 973 | $ 64,463 | $ 1,207 | $ 52,994 | $ 976 | |||||
LaRonde Zone 5 mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 262 | 295 | 894 | 865 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 18,715 | $ 71 | $ 18,066 | $ 61 | $ 62,702 | $ 70 | $ 51,932 | $ 60 | |||||
Production costs (C$) | C$ 25,082 | C$ 96 | C$ 23,505 | C$ 80 | C$ 84,347 | C$ 94 | C$ 66,532 | C$ 77 | |||||
Inventory adjustments (C$)(ii) | 234 | — | 160 | — | (175) | — | 1,259 | 1 | |||||
Minesite operating costs (C$) | C$ 25,316 | C$ 96 | C$ 23,665 | C$ 80 | C$ 84,172 | C$ 94 | C$ 67,791 | C$ 78 | |||||
LaRonde complex
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 64,496 | 82,621 | 220,883 | 276,168 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 85,192 | $ 1,321 | $ 101,977 | $ 1,234 | $ 232,855 | $ 1,054 | $ 215,633 | $ 781 | |||||
Inventory adjustments(ii) | (16,066) | (249) | (28,998) | (351) | (2,793) | (13) | 3,490 | 13 | |||||
Realized gains and losses on hedges of production costs | 423 | 7 | 2,530 | 31 | 2,887 | 13 | 1,775 | 6 | |||||
Other adjustments(v) | 4,931 | 76 | 4,019 | 49 | 15,945 | 73 | 10,909 | 39 | |||||
Cash operating costs (co-product basis) | $ 74,480 | $ 1,155 | $ 79,528 | $ 963 | $ 248,894 | $ 1,127 | $ 231,807 | $ 839 | |||||
By-product metal revenues | (11,779) | (183) | (11,951) | (145) | (42,014) | (190) | (47,931) | (173) | |||||
Cash operating costs (by-product basis) | $ 62,701 | $ 972 | $ 67,577 | $ 818 | $ 206,880 | $ 937 | $ 183,876 | $ 666 | |||||
LaRonde complex
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 627 | 711 | 1,995 | 2,158 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 85,192 | $ 136 | $ 101,977 | $ 143 | $ 232,855 | $ 117 | $ 215,633 | $ 100 | |||||
Production costs (C$) | C$ 114,310 | C$ 182 | C$ 133,066 | C$ 187 | C$ 313,009 | C$ 157 | C$ 277,425 | C$ 128 | |||||
Inventory adjustments (C$)(ii) | (19,647) | (31) | (37,681) | (53) | (1,630) | (1) | 1,631 | 1 | |||||
Other adjustments (C$)(v) | (2,752) | (4) | (2,328) | (3) | (9,195) | (5) | (9,205) | (4) | |||||
Minesite operating costs (C$) | C$ 91,911 | C$ 147 | C$ 93,057 | C$ 131 | C$ 302,184 | C$ 151 | C$ 269,851 | C$ 125 | |||||
Canadian Malartic complex
Per Ounce of Gold Produced(i) |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 177,243 | 75,262 | 435,683 | 242,957 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 125,455 | $ 708 | $ 58,516 | $ 777 | $ 326,936 | $ 750 | $ 171,858 | $ 707 | |||||
Inventory adjustments(ii) | 6,994 | 39 | (2,445) | (32) | 7,532 | 17 | 422 | 2 | |||||
Purchase price allocation to inventory(iv) | (3,626) | (20) | — | — | (26,447) | (61) | — | — | |||||
Other adjustments(v) | 15,414 | 87 | 6,737 | 90 | 40,631 | 94 | 22,851 | 94 | |||||
Cash operating costs (co-product basis) | $ 144,237 | $ 814 | $ 62,808 | $ 835 | $ 348,652 | $ 800 | $ 195,131 | $ 803 | |||||
By-product metal revenues | (1,551) | (9) | (1,067) | (15) | (4,758) | (11) | (3,972) | (16) | |||||
Cash operating costs (by-product basis) | $ 142,686 | $ 805 | $ 61,741 | $ 820 | $ 343,894 | $ 789 | $ 191,159 | $ 787 | |||||
Canadian Malartic complex
Per Tonne(i) |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 4,911 | 2,484 | 12,055 | 7,295 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 125,455 | $ 26 | $ 58,516 | $ 24 | $ 326,936 | $ 27 | $ 171,858 | $ 24 | |||||
Production costs (C$) | C$ 168,339 | C$ 34 | C$ 75,515 | C$ 30 | C$ 440,001 | C$ 36 | C$ 218,224 | C$ 30 | |||||
Inventory adjustments (C$)(ii) | 9,569 | 2 | (2,980) | (1) | 10,820 | 1 | 694 | — | |||||
Purchase price allocation to inventory (C$)(iv) | (3,904) | (1) | — | — | (34,555) | (3) | — | — | |||||
Other adjustments (C$)(v) | 20,081 | 4 | 8,705 | 4 | 53,505 | 5 | 28,933 | 4 | |||||
Minesite operating costs (C$) | C$ 194,085 | C$ 39 | C$ 81,240 | C$ 33 | C$ 469,771 | C$ 39 | C$ 247,851 | C$ 34 | |||||
Goldex mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 35,880 | 33,889 | 107,619 | 105,211 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 28,805 | $ 803 | $ 26,297 | $ 776 | $ 84,800 | $ 788 | $ 79,044 | $ 751 | |||||
Inventory adjustments(ii) | 439 | 12 | 6 | — | (16) | — | 694 | 7 | |||||
Realized gains and losses on hedges of production costs | 207 | 6 | 909 | 27 | 1,419 | 13 | 638 | 6 | |||||
Other adjustments(v) | 47 | 1 | 60 | 2 | 149 | 1 | 155 | 1 | |||||
Cash operating costs (co-product basis) | $ 29,498 | $ 822 | $ 27,272 | $ 805 | $ 86,352 | $ 802 | $ 80,531 | $ 765 | |||||
By-product metal revenues | (13) | — | (10) | (1) | (38) | — | (31) | — | |||||
Cash operating costs (by-product basis) | $ 29,485 | $ 822 | $ 27,262 | $ 804 | $ 86,314 | $ 802 | $ 80,500 | $ 765 | |||||
Goldex mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 756 | 710 | 2,215 | 2,192 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 28,805 | $ 38 | $ 26,297 | $ 37 | $ 84,800 | $ 38 | $ 79,044 | $ 36 | |||||
Production costs (C$) | C$ 38,656 | C$ 51 | C$ 34,381 | C$ 48 | C$ 114,142 | C$ 52 | C$ 101,552 | C$ 46 | |||||
Inventory adjustments (C$)(ii) | 625 | 1 | 101 | 1 | (35) | — | 1,016 | 1 | |||||
Minesite operating costs (C$) | C$ 39,281 | C$ 52 | C$ 34,482 | C$ 49 | C$ 114,107 | C$ 52 | C$ 102,568 | C$ 47 | |||||
Detour Lake mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 152,762 | 175,487 | 483,971 | 471,445 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 106,396 | $ 696 | $ 113,736 | $ 648 | $ 333,214 | $ 688 | $ 371,130 | $ 787 | |||||
Inventory adjustments(ii) | 3,705 | 24 | 4,621 | 26 | 3,537 | 7 | (8,012) | (17) | |||||
Realized gains and losses on hedges of production costs | (1,530) | (10) | — | — | 4,565 | 10 | — | — | |||||
Purchase price allocation to inventory(iv) | — | — | (3,120) | (18) | — | — | (71,957) | (152) | |||||
Other adjustments(v) | 7,063 | 47 | 6,799 | 39 | 24,048 | 50 | 18,388 | 39 | |||||
Cash operating costs (co-product basis) | $ 115,634 | $ 757 | $ 122,036 | $ 695 | $ 365,364 | $ 755 | $ 309,549 | $ 657 | |||||
By-product metal revenues | (288) | (2) | (736) | (4) | (1,475) | (3) | (2,956) | (7) | |||||
Cash operating costs (by-product basis) | $ 115,346 | $ 755 | $ 121,300 | $ 691 | $ 363,889 | $ 752 | $ 306,593 | $ 650 | |||||
Detour Lake mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 5,630 | 6,505 | 18,827 | 16,294 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 106,396 | $ 19 | $ 113,736 | $ 17 | $ 333,214 | $ 18 | $ 371,130 | $ 23 | |||||
Production costs (C$) | C$ 142,461 | C$ 25 | C$ 148,903 | C$ 23 | C$ 448,014 | C$ 24 | C$ 476,142 | C$ 29 | |||||
Inventory adjustments (C$)(ii) | (8,125) | (1) | 6,808 | 1 | 4,747 | — | (9,059) | (1) | |||||
Purchase price allocation to inventory(C$)(iv) | — | — | (4,809) | (1) | — | — | (92,317) | (6) | |||||
Other adjustments (C$)(v) | 8,339 | 1 | 8,938 | 2 | 28,485 | 2 | 23,687 | 2 | |||||
Minesite operating costs (C$) | C$ 142,675 | C$ 25 | C$ 159,840 | C$ 25 | C$ 481,246 | C$ 26 | C$ 398,453 | C$ 24 | |||||
Macassa mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 46,792 | 51,775 | 167,951 | 137,525 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 35,864 | $ 766 | $ 33,533 | $ 648 | $ 112,368 | $ 669 | $ 98,848 | $ 719 | |||||
Inventory adjustments(ii) | 1,870 | 40 | 599 | 12 | 397 | 2 | (548) | (4) | |||||
Realized gains and losses on hedges of production costs | 334 | 7 | — | — | 2,283 | 14 | — | — | |||||
Purchase price allocation to inventory(iv) | — | — | — | — | — | — | (10,326) | (75) | |||||
Other adjustments(v) | 1,376 | 30 | 1,634 | 31 | 6,133 | 37 | 2,922 | 21 | |||||
Cash operating costs (co-product basis) | $ 39,444 | $ 843 | $ 35,766 | $ 691 | $ 121,181 | $ 722 | $ 90,896 | $ 661 | |||||
By-product metal revenues | (107) | (2) | (89) | (2) | (483) | (3) | (276) | (2) | |||||
Cash operating costs (by-product basis) | $ 39,337 | $ 841 | $ 35,677 | $ 689 | $ 120,698 | $ 719 | $ 90,620 | $ 659 | |||||
Macassa mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 112 | 75 | 311 | 210 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 35,864 | $ 320 | $ 33,533 | $ 447 | $ 112,368 | $ 361 | $ 98,848 | $ 470 | |||||
Production costs (C$) | C$ 48,508 | C$ 435 | C$ 43,781 | C$ 588 | C$ 151,744 | C$ 488 | C$ 126,822 | C$ 605 | |||||
Inventory adjustments (C$)(ii) | 2,834 | 25 | 1,047 | 14 | 758 | 2 | (319) | (2) | |||||
Purchase price allocation to inventory(C$)(iv) | — | — | (120) | (2) | — | — | (13,248) | (63) | |||||
Other adjustments (C$)(v) | 1,754 | 16 | 2,090 | 28 | 8,045 | 26 | 3,747 | 19 | |||||
Minesite operating costs (C$) | C$ 53,096 | C$ 476 | C$ 46,798 | C$ 628 | C$ 160,547 | C$ 516 | C$ 117,002 | C$ 559 | |||||
Meliadine mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 89,707 | 91,201 | 267,856 | 269,477 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 89,210 | $ 994 | $ 71,830 | $ 788 | $ 249,221 | $ 930 | $ 236,895 | $ 879 | |||||
Inventory adjustments(ii) | (2,334) | (26) | (1,601) | (18) | 12,518 | 47 | (1,640) | (6) | |||||
Realized gains and losses on hedges of production costs | 299 | 3 | 758 | 8 | (64) | — | (1,437) | (5) | |||||
Other adjustments(v) | 59 | 1 | 80 | 1 | 46 | — | 243 | 1 | |||||
Cash operating costs (co-product basis) | $ 87,234 | $ 972 | $ 71,067 | $ 779 | $ 261,721 | $ 977 | $ 234,061 | $ 869 | |||||
By-product metal revenues | (138) | (1) | (167) | (2) | (477) | (2) | (572) | (3) | |||||
Cash operating costs (by-product basis) | $ 87,096 | $ 971 | $ 70,900 | $ 777 | $ 261,244 | $ 975 | $ 233,489 | $ 866 | |||||
Meliadine mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 470 | 401 | 1,407 | 1,282 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 89,210 | $ 190 | $ 71,830 | $ 179 | $ 249,221 | $ 177 | $ 236,895 | $ 185 | |||||
Production costs (C$) | C$ 119,181 | C$ 254 | C$ 91,628 | C$ 229 | C$ 333,896 | C$ 237 | C$ 300,553 | C$ 235 | |||||
Inventory adjustments (C$)(ii) | (2,555) | (6) | (1,286) | (3) | 17,051 | 12 | (1,002) | (1) | |||||
Minesite operating costs (C$) | C$ 116,626 | C$ 248 | C$ 90,342 | C$ 226 | C$ 350,947 | C$ 249 | C$ 299,551 | C$ 234 | |||||
Meadowbank complex
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 116,555 | 122,994 | 322,440 | 279,457 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 133,919 | $ 1,149 | $ 109,905 | $ 894 | $ 381,411 | $ 1,183 | $ 313,989 | $ 1,124 | |||||
Inventory adjustments(ii) | 9,165 | 78 | 6,231 | 50 | 2,463 | 8 | 12,302 | 44 | |||||
Realized gains and losses on hedges of production costs | 115 | 1 | (1,084) | (9) | (3,502) | (11) | (4,758) | (17) | |||||
Operational care & maintenance due to COVID-19(iii) | — | — | — | — | — | — | (1,436) | (6) | |||||
Other adjustments(v) | 101 | 1 | (27) | — | 50 | — | 13 | — | |||||
Cash operating costs (co-product basis) | $ 143,300 | $ 1,229 | $ 115,025 | $ 935 | $ 380,422 | $ 1,180 | $ 320,110 | $ 1,145 | |||||
By-product metal revenues | (573) | (4) | (687) | (5) | (2,121) | (7) | (1,569) | (5) | |||||
Cash operating costs (by-product basis) | $ 142,727 | $ 1,225 | $ 114,338 | $ 930 | $ 378,301 | $ 1,173 | $ 318,541 | $ 1,140 | |||||
Meadowbank complex
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 1,077 | 1,031 | 2,905 | 2,816 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 133,919 | $ 124 | $ 109,905 | $ 107 | $ 381,411 | $ 131 | $ 313,989 | $ 112 | |||||
Production costs (C$) | C$ 179,597 | C$ 167 | C$ 139,317 | C$ 135 | C$ 509,982 | C$ 176 | C$ 398,445 | C$ 141 | |||||
Inventory adjustments (C$)(ii) | 12,457 | 11 | 8,799 | 9 | 3,599 | 1 | 16,696 | 6 | |||||
Operational care and maintenance due to COVID-19 (C$)(iii) | — | — | — | — | — | — | (1,793) | — | |||||
Minesite operating costs (C$) | C$ 192,054 | C$ 178 | C$ 148,116 | C$ 144 | C$ 513,581 | C$ 177 | C$ 413,348 | C$ 147 | |||||
Fosterville mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 59,790 | 81,801 | 228,161 | 249,693 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 27,539 | $ 461 | $ 34,214 | $ 418 | $ 99,969 | $ 438 | $ 170,518 | $ 683 | |||||
Inventory adjustments(ii) | 1,093 | 18 | 1,424 | 18 | (1,792) | (8) | (5,385) | (22) | |||||
Realized gains and losses on hedges of production costs | 1,101 | 18 | — | — | 1,778 | 8 | — | — | |||||
Purchase price allocation to inventory(iv) | — | — | — | — | — | — | (73,674) | (295) | |||||
Other adjustments(v) | 7 | — | — | — | 46 | — | — | — | |||||
Cash operating costs (co-product basis) | $ 29,740 | $ 497 | $ 35,638 | $ 436 | $ 100,001 | $ 438 | $ 91,459 | $ 366 | |||||
By-product metal revenues | (119) | (2) | (88) | (1) | (397) | (1) | (401) | (1) | |||||
Cash operating costs (by-product basis) | $ 29,621 | $ 495 | $ 35,550 | $ 435 | $ 99,604 | $ 437 | $ 91,058 | $ 365 | |||||
Fosterville mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 144 | 172 | 468 | 385 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 27,539 | $ 191 | $ 34,214 | $ 199 | $ 99,969 | $ 214 | $ 170,518 | $ 443 | |||||
Production costs (A$) | A$ 42,194 | A$ 291 | A$ 52,840 | A$ 306 | A$ 150,656 | A$ 322 | A$ 241,880 | A$ 627 | |||||
Inventory adjustments (A$)(ii) | 1,818 | 13 | 2,178 | 13 | (2,539) | (6) | (7,231) | (19) | |||||
Purchase price allocation to inventory(A$)(iv) | — | — | (2,329) | (14) | — | — | (104,507) | (268) | |||||
Minesite operating costs (A$) | A$ 44,012 | A$ 304 | A$ 52,689 | A$ 305 | A$ 148,117 | A$ 316 | A$ 130,142 | A$ 340 | |||||
Kittila mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 59,408 | 61,901 | 173,230 | 172,223 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 58,569 | $ 986 | $ 51,622 | $ 834 | $ 155,200 | $ 896 | $ 154,388 | $ 896 | |||||
Inventory adjustments(ii) | (2,439) | (41) | (2,464) | (40) | 305 | 2 | (6,419) | (37) | |||||
Realized gains and losses on hedges of production costs | (788) | (13) | 3,076 | 50 | (2,346) | (14) | 5,296 | 31 | |||||
Other adjustments(v) | (20) | (1) | 18 | — | (1,293) | (7) | 111 | 1 | |||||
Cash operating costs (co-product basis) | $ 55,322 | $ 931 | $ 52,252 | $ 844 | $ 151,866 | $ 877 | $ 153,376 | $ 891 | |||||
By-product metal revenues | (51) | (1) | (52) | (1) | (213) | (2) | (219) | (2) | |||||
Cash operating costs (by-product basis) | $ 55,271 | $ 930 | $ 52,200 | $ 843 | $ 151,653 | $ 875 | $ 153,157 | $ 889 | |||||
Kittila mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore milled (thousands of tonnes) | 527 | 487 | 1,440 | 1,504 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 58,569 | $ 111 | $ 51,622 | $ 106 | $ 155,200 | $ 108 | $ 154,388 | $ 103 | |||||
Production costs (€) | € 53,071 | € 101 | € 50,526 | € 104 | € 144,073 | € 100 | € 143,984 | € 96 | |||||
Inventory adjustments (€)(ii) | (960) | (2) | (1,932) | (4) | (128) | — | (4,861) | (4) | |||||
Minesite operating costs (€) | € 52,111 | € 99 | € 48,594 | € 100 | € 143,945 | € 100 | € 139,123 | € 92 | |||||
Pinos Altos mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 25,386 | 23,041 | 71,679 | 71,231 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 40,147 | $ 1,581 | $ 34,513 | $ 1,498 | $ 107,778 | $ 1,504 | $ 106,922 | $ 1,501 | |||||
Inventory adjustments(ii) | 1,225 | 48 | 360 | 16 | 1,738 | 24 | (1,796) | (25) | |||||
Realized gains and losses on hedges of production costs | (922) | (36) | (156) | (7) | (2,065) | (29) | (703) | (10) | |||||
Other adjustments(v) | 324 | 13 | 298 | 13 | 902 | 13 | 923 | 13 | |||||
Cash operating costs (co-product basis) | $ 40,774 | $ 1,606 | $ 35,015 | $ 1,520 | $ 108,353 | $ 1,512 | $ 105,346 | $ 1,479 | |||||
By-product metal revenues | (7,527) | (296) | (5,171) | (225) | (19,754) | (276) | (16,516) | (232) | |||||
Cash operating costs (by-product basis) | $ 33,247 | $ 1,310 | $ 29,844 | $ 1,295 | $ 88,599 | $ 1,236 | $ 88,830 | $ 1,247 | |||||
Pinos Altos mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore processed (thousands of tonnes) | 450 | 378 | 1,215 | 1,128 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 40,147 | $ 89 | $ 34,513 | $ 91 | $ 107,778 | $ 89 | $ 106,922 | $ 95 | |||||
Inventory adjustments(ii) | (1,984) | (4) | 360 | 1 | (327) | (1) | (1,796) | (2) | |||||
Minesite operating costs | $ 38,163 | $ 85 | $ 34,873 | $ 92 | $ 107,451 | $ 88 | $ 105,126 | $ 93 | |||||
Creston Mascota mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 141 | 538 | 550 | 2,179 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ — | $ — | $ 644 | $ 1,197 | $ — | $ — | $ 1,743 | $ 800 | |||||
Inventory adjustments(ii) | — | — | (30) | (57) | — | — | (57) | (26) | |||||
Other adjustments(v) | — | — | 15 | 27 | — | — | 63 | 29 | |||||
Cash operating costs (co-product basis) | $ — | $ — | $ 629 | $ 1,167 | $ — | $ — | $ 1,749 | $ 803 | |||||
By-product metal revenues | — | — | 12 | 21 | — | — | (128) | (59) | |||||
Cash operating costs (by-product basis) | $ — | $ — | $ 641 | $ 1,188 | $ — | $ — | $ 1,621 | $ 744 | |||||
Creston Mascota mine
Per Tonne(vi) |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore processed (thousands of tonnes) | — | — | — | — | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ — | $ — | $ 644 | $ — | $ — | $ — | $ 1,743 | $ — | |||||
Inventory adjustments(ii) | — | — | (30) | — | — | — | (57) | — | |||||
Other adjustments(v) | — | — | (614) | — | — | — | (1,686) | — | |||||
Minesite operating costs | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | |||||
La India mine
Per Ounce of Gold Produced |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Gold production (ounces) | 22,269 | 16,285 | 56,423 | 58,003 | |||||||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | (thousands) | ($ per ounce) | ||||||
Production costs | $ 28,315 | $ 1,271 | $ 20,286 | $ 1,246 | $ 72,056 | $ 1,277 | $ 55,476 | $ 956 | |||||
Inventory adjustments(ii) | (2,319) | (103) | (721) | (44) | 447 | 8 | 1,411 | 25 | |||||
Other adjustments(v) | 139 | 6 | 150 | 9 | 402 | 7 | 523 | 9 | |||||
Cash operating costs (co-product basis) | $ 26,135 | $ 1,174 | $ 19,715 | $ 1,211 | $ 72,905 | $ 1,292 | $ 57,410 | $ 990 | |||||
By-product metal revenues | (395) | (18) | (240) | (15) | (1,117) | (20) | (1,399) | (24) | |||||
Cash operating costs (by-product basis) | $ 25,740 | $ 1,156 | $ 19,475 | $ 1,196 | $ 71,788 | $ 1,272 | $ 56,011 | $ 966 | |||||
La India mine
Per Tonne |
Three Months Ended September 30, 2023 |
Three Months Ended September 30, 2022 |
Nine Months Ended September 30, 2023 |
Nine Months Ended September 30, 2022 |
|||||||||
Tonnes of ore processed (thousands of tonnes) | 970 | 1,045 | 2,510 | 3,964 | |||||||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | (thousands) | ($ per tonne) | ||||||
Production costs | $ 28,315 | $ 29 | $ 20,286 | $ 19 | $ 72,056 | $ 29 | $ 55,476 | $ 14 | |||||
Inventory adjustments(ii) | (2,319) | (2) | (721) | — | 447 | — | 1,411 | — | |||||
Minesite operating costs | $ 25,996 | $ 27 | $ 19,565 | $ 19 | $ 72,503 | $ 29 | $ 56,887 | $ 14 | |||||
Notes: | |||||||||||||
(i) The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter | |||||||||||||
(ii) Under the Company’s revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue | |||||||||||||
(iii) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company’s mine sites in response to the COVID-19 pandemic and includes primarily payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working during the period of reduced or suspended operations. These expenses also include payroll costs of employees who could not work following the period of temporary suspension or reduced operations due to the Company’s effort to prevent or curtail community transmission of COVID-19. These costs were previously classified as “other adjustments” and have now been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impact of such events on the total cash costs per ounce and minesite cost per tonne | |||||||||||||
(iv) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa, and Fosterville mines as part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction and this adjustment reflects the fair value allocated to inventory at the Canadian Malartic complex as part of the purchase price allocation | |||||||||||||
(v) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, smelting, refining, and marketing charges to production costs | |||||||||||||
(vi) The Creston Mascota mine’s cost calculations per tonne for the three and nine months ended September 30, 2022 excludes approximately $0.6 and $1.7 million of production costs incurred during the period, respectively, following the ceasing of mining activities at the Bravo pit during the third quarter of 2020 | |||||||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce Produced(iv) and All-in Sustaining Costs per Ounce of Gold Produced(iv) |
||||||||||||||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company’s use of the non-GAAP measure all-in sustaining costs per ounce of gold produced | ||||||||||||||
The following tables set out a reconciliation of production costs to the Company’s use of the non-GAAP measure all-in sustaining costs per ounce of gold produced for the nine months ended September 30, 2023 and September 30, 2022 on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues)
|
||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||
(United States dollars per ounce of gold produced, except where noted) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Production costs per the condensed interim consolidated statements of income
(thousands of United States dollars) |
$ 759,411 | $ 657,073 | $ 2,155,808 | $ 1,976,444 | ||||||||||
Gold production (ounces) | 850,429 | 816,794 | 2,536,445 | 2,335,569 | ||||||||||
Production costs per ounce of adjusted gold production | $ 893 | $ 804 | $ 850 | $ 846 | ||||||||||
Adjustments: | ||||||||||||||
Inventory adjustments(i) | 2 | (27) | 10 | (2) | ||||||||||
Purchase price allocation to inventory(ii) | (4) | (4) | (10) | (67) | ||||||||||
Realized gains and losses on hedges of production costs | (1) | 7 | 2 | — | ||||||||||
Other(iii) | 34 | 24 | 33 | 24 | ||||||||||
Total cash costs per ounce of gold produced (co-product basis)(iv) | $ 924 | $ 804 | $ 885 | $ 801 | ||||||||||
By-product metal revenues | (26) | (25) | (28) | (32) | ||||||||||
Total cash costs per ounce of gold produced (by-product basis)(iv) | $ 898 | $ 779 | $ 857 | $ 769 | ||||||||||
Adjustments: | ||||||||||||||
Sustaining capital expenditures (including capitalized exploration) | 248 | 252 | 234 | 214 | ||||||||||
General and administrative expenses (including stock option expense) | 45 | 61 | 53 | 71 | ||||||||||
Non-cash reclamation provision and sustaining leases(v) | 19 | 14 | 18 | 13 | ||||||||||
All-in sustaining costs per ounce of gold produced (by-product basis) | $ 1,210 | $ 1,106 | $ 1,162 | $ 1,067 | ||||||||||
By-product metal revenues | 26 | 25 | 28 | 32 | ||||||||||
All-in sustaining costs per ounce of gold produced (co-product basis) | $ 1,236 | $ 1,131 | $ 1,190 | $ 1,099 | ||||||||||
Notes: | ||||||||||||||
(i) Under the Company’s revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue | ||||||||||||||
(ii) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa and Fosterville mines as part of the purchase price allocation. On March 31, 2023, the Company completed the Yamana Transaction and this adjustment reflects the fair value allocated to inventory at the Canadian Malartic complex as part of the purchase price allocation | ||||||||||||||
(iii) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, smelting, refining and marketing charges to production costs | ||||||||||||||
(iv) 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. Note Regarding Certain Measures of Performance for more information on the Company’s use of total cash cost per ounce of gold produced | ||||||||||||||
(v) Sustaining leases are lease payments related to sustaining assets | ||||||||||||||
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, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Sustaining capital expenditures(i)(ii) | $ 211,298 | $ 206,756 | $ 592,843 | $ 506,506 | ||||||||||
Development capital expenditures(i)(ii) | 195,128 | 221,315 | 571,364 | 573,220 | ||||||||||
Total Capital Expenditures | $ 406,426 | $ 428,071 | $ 1,164,207 | $ 1,079,726 | ||||||||||
Working capital adjustments | 13,406 | 7,588 | 64,180 | 57,680 | ||||||||||
Additions to property, plant and mine development per the condensed interim consolidated statements of cash flows |
$ 419,832 | $ 435,659 | $ 1,228,387 | $ 1,137,406 | ||||||||||
Note: | ||||||||||
(i) Sustaining capital expenditures and development capital expenditures are not recognized measures underIFRS and this data may not be comparable to other gold producers. SeeNote Regarding Certain Measures of Performance for more information on the Company’s use of the measures sustaining capital expenditures and development capital expenditures | ||||||||||
(ii) Sustaining capital expenditures and development capital expenditures include capitalized exploration | ||||||||||
Reconciliation of Long-Term Debt to Net Debt | ||||||||||
As at | As at | |||||||||
September 30, 2023 | December 31, 2022 | |||||||||
Current portion of long-term debt per the consolidated balance sheets | $ 100,000 | $ 100,000 | ||||||||
Non-current portion of long-term debt | 1,842,553 | 1,242,070 | ||||||||
Long-term debt | $ 1,942,553 | $ 1,342,070 | ||||||||
Adjustments: | ||||||||||
Cash and cash equivalents | $ (355,491) | $ (658,625) | ||||||||
Net Debt | $ 1,587,062 | $ 683,445 |
Reconciliation of Adjusted Net Income(i) to Net Income | |||||||||||||
(thousands of United States dollars) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Restated(ii) | Restated(ii) | ||||||||||||
Net income for the period – basic | $ 178,606 | $ 66,679 | $ 2,322,318 | $ 476,144 | |||||||||
Dilutive impact of cash settling LTIP | (1,915) | 137 | (4,831) | 535 | |||||||||
Net income for the period – diluted | $ 176,691 | $ 66,816 | $ 2,317,487 | $ 476,679 | |||||||||
Foreign currency translation gain | (6,492) | (15,479) | (2,258) | (27,761) | |||||||||
Realized and unrealized loss on derivative financial instruments | 34,010 | 162,374 | 1,038 | 174,463 | |||||||||
Transaction costs and severance related to acquisitions | 4,591 | 183 | 21,503 | 92,322 | |||||||||
Revaluation gain on Yamana Transaction | — | — | (1,543,414) | — | |||||||||
Net loss on disposal of property, plant and equipment | 5,491 | 509 | 9,092 | 4,423 | |||||||||
Other(iii) | 5,152 | 3,785 | 3,175 | 1,624 | |||||||||
Purchase price allocation to inventory(iv) | 3,656 | 3,120 | 26,477 | 155,956 | |||||||||
Income and mining taxes adjustments | (5,070) | 1,302 | (24,293) | (48,096) | |||||||||
Adjusted net income for the period – basic | $ 219,944 | $ 222,473 | $ 813,638 | $ 829,075 | |||||||||
Adjusted net income for the period – diluted | $ 218,029 | $ 222,610 | $ 808,807 | $ 829,610 | |||||||||
Notes: | |||||||||||||
(i) Adjusted net income is not a recognized measure under IFRS and this data may not be comparable to other gold producers. SeeNote Regarding Certain Measures of Performance for more information on the Company’s use of adjusted net income | |||||||||||||
(ii) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger | |||||||||||||
(iii) Other adjustments include environmental remediation, integration costs and payments that relate to prior years that management considers are not reflective of the Company’s underlying performance in the period | |||||||||||||
(iv) As part of the purchase price allocation in a business combination, the Company is required to determine the fair value of net assets acquired. These non-cash fair value adjustments which increased the cost of inventory sold during the period and are not representative of ongoing operations, were normalized from net income | |||||||||||||
EBITDA and Adjusted EBITDA
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(thousands of United States dollars) | 2023 | 2022(i) | 2023 | 2022(i) | |||
Net income for the period | $ 178,606 | $ 66,679 | $ 2,322,318 | $ 476,144 | |||
Finance costs | 35,704 | 19,278 | 94,989 | 62,892 | |||
Amortization of property, plant and mine development | 414,994 | 283,486 | 1,100,215 | 809,021 | |||
Income and mining tax expense | 92,706 | 149,310 | 360,833 | 376,367 | |||
EBITDA | 722,010 | 518,753 | 3,878,355 | 1,724,424 | |||
Foreign currency translation gain | (6,492) | (15,479) | (2,258) | (27,761) | |||
Realized and unrealized loss on derivative financial instruments | 34,010 | 162,374 | 1,038 | 174,463 | |||
Transaction costs and severance related to acquisitions | 4,591 | 183 | 21,503 | 92,322 | |||
Revaluation gain on Yamana Transaction | — | — | (1,543,414) | — | |||
Net loss on disposal of property, plant and equipment | 5,491 | 509 | 9,092 | 4,423 | |||
Other(ii) | 5,152 | 3,785 | 3,175 | 1,624 | |||
Purchase price allocation to inventory | 3,656 | 3,120 | 26,477 | 155,956 | |||
Income and mining taxes adjustments(iii) | (5,070) | 1,302 | (24,293) | (48,906) | |||
Adjusted EBITDA | $ 763,348 | $ 674,547 | $ 2,369,675 | $ 2,076,545 | |||
Free Cash Flow and Free Cash Flow Before Changes in Non-Cash Components of Working Capital
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||
(thousands of United States dollars) | 2023 | 2022(i) | 2023 | 2022(i) | |||||||||
Cash provided by operating activities | $ 502,088 | $ 575,438 | $ 1,873,701 | $ 1,716,136 | |||||||||
Additions to property, plant and mine development | (419,832) | (435,659) | (1,228,387) | (1,137,406) | |||||||||
Free Cash Flow | 82,256 | 139,779 | 645,314 | 578,730 | |||||||||
Changes in trade receivables | $ (2,572) | $ 24,295 | $ (8,037) | $ (14,540) | |||||||||
Changes in income taxes | 7,425 | (47,834) | (81,980) | (4,503) | |||||||||
Changes in inventory | 118,251 | 159,300 | 144,998 | (8,742) | |||||||||
Changes in other current assets | 6,099 | (73,459) | 94,984 | 44,406 | |||||||||
Changes in accounts payable and accrued liabilities | 49,432 | (72,905) | (51,427) | (97,950) | |||||||||
Changes in interest payable | (12,067) | (6,471) | (1,760) | (4,476) | |||||||||
Free Cash Flow Before Changes in Non-Cash Components of Working Capital | $ 248,824 | $ 122,705 | $ 742,092 | $ 492,925 | |||||||||
Additions to property, plant and mine development | 419,832 | 435,659 | 1,228,387 | 1,137,406 | |||||||||
Cash provided by operating activities before working capital adjustments | $ 668,656 | $ 558,364 | $ 1,970,479 | $ 1,630,331 | |||||||||
Notes: | |||||||||||||
(i) The Company finalized the purchase price allocation of the Merger during the year ended December 31, 2022 and adjustments were made retrospectively to the acquisition date of February 8, 2022 and the comparative amounts above have been adjusted accordingly. For more information please see Note 5 in the Company’s condensed interim consolidated financial statements. | |||||||||||||
(ii) Other adjustments include environmental remediation, integration costs and payments that relate to prior years that management considers are not reflective of the Company’s underlying performance in the period. | |||||||||||||
(iii) As part of the purchase price allocation in a business combination, the Company is required to determine the fair value of net assets acquired. These non-cash fair value adjustments which increased the cost of inventory sold during the period and are not representative of ongoing operations, were normalized from net income. | |||||||||||||
Galway Metals Inc. (TSX-V: GWM) (OTCQB: GAYMF) is pleased to report assay results from 11 diamond dr... READ MORE
Alaska Energy Metals Corporation (TSX-V: AEMC) (OTCQB: AKEMF) is pleased to announce assay results f... READ MORE
Scottie Resources Corp. (TSX-V: SCOT) (OTCQB: SCTSF) (FSE: SR8) is pleased to report new assays fro... READ MORE
Lithium Ionic Corp. (TSX-V: LTH) (OTCQX: LTHCF) (FSE: H3N) is pleased to announce positive new drill... READ MORE
Ero Copper Corp. (TSX: ERO) (NYSE: ERO) is pleased to announce an update of its National Instrument ... READ MORE