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AGNICO EAGLE REPORTS THIRD QUARTER 2023 RESULTS – SOLID QUARTERLY GOLD PRODUCTION AND COST PERFORMANCE; WELL POSITIONED TO ACHIEVE ANNUAL COST GUIDANCE AND GOLD PRODUCTION ABOVE THE MID-POINT OF ANNUAL GUIDANCE

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AGNICO EAGLE REPORTS THIRD QUARTER 2023 RESULTS – SOLID QUARTERLY GOLD PRODUCTION AND COST PERFORMANCE; WELL POSITIONED TO ACHIEVE ANNUAL COST GUIDANCE AND GOLD PRODUCTION ABOVE THE MID-POINT OF ANNUAL GUIDANCE

 

 

 

 

 

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

  • Quarterly gold production and cost performance remain solid – Payable gold production1 in the third quarter of 2023 was 850,429 ounces at production costs per ounce of $893, total cash costs per ounce2 of $898 and all-in sustaining costs (“AISC”) per ounce3 of $1,210
  • Strong quarterly financial results – The Company reported quarterly net income of $0.36 per share in the third quarter of 2023 and adjusted net income4 of $0.44 per share. Cash provided by operating activities was $1.01 per share ($1.35 per share before working capital adjustments5)
  • Canadian Malartic and Meadowbank drive solid production – Gold production in the third quarter of 2023 was led by strong production at the Canadian Malartic and Meadowbank complexes as well as the Kittila mine, offsetting lower production at Detour Lake and Fosterville. The strong performance at Canadian Malartic was driven by positive grade reconciliation at the Barnat pit and higher throughput from softer rock conditions
  • Temporary transformer issue at Detour Lake resulted in unscheduled mill downtime – The transformer powering the semi-autogenous grinding (“SAG”) mill on one of the two grinding circuits at the Detour Lake mill (“Line 1”) failed unexpectedly in August 2023. Leveraging the procurement network in the Abitibi region, the Company was able to refurbish the failed transformer within 25 days. During the SAG unit downtime on Line 1, the Company operated the Detour Lake mill at approximately 70% of normal operating rates, resulting in lower production in the third quarter of 2023. The mill returned to normal operating levels in the second half of September 2023. The Company believes Detour Lake is well positioned to achieve the low end of its annual production guidance
  • Supreme Administrative Court of Finland (“SAC”) decision on the Kittila operating permit remains pending – 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 million tonnes per annum (“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. Under this scenario, 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
  • Gold production, cost and capital expenditure guidance reiterated for 2023 – Based on operating performance in the first nine months of 2023, the Company is on-track to be above the mid-point of its production guidance for 2023. Expected payable gold production in 2023 remains unchanged at approximately 3.24 to 3.44 million ounces with total cash costs per ounce expected to be between $840 and $890 and AISC per ounce expected to be between $1,140 and $1,190. Estimated total capital expenditures (excluding capitalized exploration) for 2023 remain at approximately $1.42 billion
  • Update on key value drivers and pipeline projects
    • Odyssey project at the Canadian Malartic complex – Production via the ramp at the Odyssey South deposit increased through the quarter reaching 3,300 tonnes per day (“tpd”) in September, approaching the planned mining rate of 3,500 tpd for 2024. With a positive reconciliation of 18% in gold ounces for the first four stopes mined compared to plan, the internal zones continue to provide upside in tonnage and grade at Odyssey South. Shaft sinking activities continued in the third quarter of 2023, reaching a depth of 130 metres at the end of the quarter. Ramp development continued to exceed targets, reaching a depth of 649 metres at the end of the third quarter of 2023. With this strong development performance, the Company is advancing shaft pre-sinking activities. Exploration drilling in the quarter focused on infilling the internal zones at the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the east and west
    • Detour Lake – Prior to the transformer failure, the mill availability was at 92%, which was the targeted rate for 2023 and reflected sustained improvements to the maintenance strategy. 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. Mill optimization initiatives continued through the quarter with the objective of continuing to increase throughput to 28.0 mtpa by 2025. Drilling continues to investigate the West Pit extension of the deposit, while tighter infill drilling in two test areas confirming continuity of higher grade zones which supports a potential underground mining scenario
    • Hope Bay – At Madrid, six exploration drills continued to advance step-out drilling on a two-kilometre long, previously untested gap between the Suluk and Patch 7 zones. Initial results show the potential to define a new high grade zone, with intercepts up to 15.9 g/t gold over 4.6 metres at 609 metres depth
  • Executive Chair Transition – The Company installed the Executive Chair board structure at the time of the Merger with Kirkland Lake Gold to assist in managing the integration of the businesses, with the intention to transition to a traditional Chair structure in time. With the integration of Agnico Eagle and Kirkland Lake Gold successfully completed, the Company now announces that Mr. Boyd will transition from Executive Chair to Chair of the board of directors of Agnico Eagle with an effective date of December 31, 2023. In this new role, the Company will continue to benefit from Mr. Boyd’s leadership, decades of experience and strategic vision. Mr. Sokalsky will remain Lead Director and Mr. Parr will remain Vice-Chair
  • A quarterly dividend of $0.40 per share has been declared

 

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1  Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
2  Total cash costs per ounce is a non-GAAP ratio that is not a standardized financial measure under IFRS and, 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

  • Third Quarter of 2023 – Gold production increased when compared to the prior-year period due to additional production from the acquisition of the remaining 50% of the Canadian Malartic complex following the closing of the transaction with Yamana Gold Inc. (the “Yamana Transaction”), partially offset by lower production at the Detour Lake and Fosterville mines and the LaRonde complex
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period as a result of a full nine months contribution in 2023 from the Detour Lake, Macassa and Fosterville mines as opposed to 234 days in the first nine months of 2022 following the closing of the merger (the “Merger”) with Kirkland Lake Gold Ltd. on February 8, 2022 and the additional production from the acquisition of the remaining 50% of the Canadian Malartic complex, partially offset by lower production at the LaRonde and Fosterville mines

 

Production Costs per Ounce

  • Third Quarter of 2023 – Production costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne resulting from inflation. A detailed description of the minesite costs per tonne at each mine is set out below
  • First Nine Months of 2023 – Production costs per ounce increased when compared to the prior-year period for the same reason as set out above in respect of the third quarter of 2023

 

Total Cash Costs per Ounce

  • Third Quarter of 2023 – Total costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne resulting from inflation and higher royalties resulting from the acquisition of the remaining 50% of the Canadian Malartic complex in the third quarter of 2023. A detailed description of the minesite costs per tonne at each mine is set out below
  • First Nine Months of 2023 – Total cash costs per ounce increased when compared to the prior-year period for the same reasons as set out above in respect of the third quarter of 2023

 

AISC per Ounce

  • Third Quarter of 2023 – AISC per ounce increased when compared to the prior-year period due to the same reasons that caused higher total cash costs per ounce during the period
  • First Nine Months of 2023 – AISC per ounce increased when compared to the prior-year period due to the same reasons that caused higher total cash costs per ounce during the period

 

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

  • Third Quarter of 2023
    • Net income was $178.6 million ($0.36 per share). This result includes the following items (net of tax): derivative losses on financial instruments of $23.6 million ($0.04 per share), foreign currency translation loss on deferred tax liabilities of $10.4 million ($0.02 per share), non-cash foreign currency translation gain of $6.5 million ($0.01 per share), transaction costs related primarily to the San Nicolas development project joint venture of $4.6 million ($0.01 per share) and various other adjustment losses of $9.2 million ($0.02 per share).
    • Excluding the above items results in adjusted net income of $219.9 million or $0.44 per share for the third quarter of 2023.
    • Included in the third quarter of 2023 net income, and not adjusted above, is a non-cash stock option expense of $2.5 million ($0.01 per share).
    • Net income increased in the third quarter of 2023 compared to the prior-year period primarily due to higher mine operating margins8 from higher realized gold prices, higher sales volumes resulting from the acquisition of the remaining 50% of Canadian Malartic, a smaller loss on derivative financial instruments and lower income and mining tax expenses, partially offset by higher amortization.
  • First Nine Months of 2023 – Net income increased in the first nine months of 2023 compared to the prior-year period primarily due to a remeasurement gain at the Canadian Malartic complex resulting from the application of purchase accounting relating to a business combination attained in stages, which requires the remeasurement of the Company’s previously held 50% interest in the Canadian Malartic complex to fair value, higher realized gold prices and higher sales volumes. The fair value of the Company’s previously held 50% interest and the resulting gain on remeasurement, along with the fair values allocated to assets acquired and liabilities assumed are preliminary, and are subject to adjustment based on further analysis and evaluation over the course of the measurement period which may not exceed 12 months from the acquisition date.

 

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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

  • Third Quarter of 2023 – Adjusted EBITDA increased when compared to the prior-year period primarily due to higher mine operating margins from higher sales volumes resulting from the acquisition of the remaining 50% of Canadian Malartic and a smaller loss on derivative financial instruments
  • First Nine Months of 2023 – Adjusted EBITDA increased when compared to the prior-year period primarily due to the reasons set out above

 

Cash Provided by Operating Activities

  • Third Quarter of 2023 – Cash provided by operating activities decreased when compared to the prior-year period primarily due to increased working capital requirements from the seasonality of the Nunavut sealift. Cash provided by operating activities before working capital adjustments increased when compared to the prior-year period primarily due to higher revenues from higher sales volumes from the acquisition of the remaining 50% of the Canadian Malartic complex and higher realized gold prices, partially offset by higher production costs
  • First Nine Months of 2023 – Cash provided by operating activities and cash provided by operating activities before working capital adjustments increased when compared to the prior-year period primarily due to higher sales volumes from a full nine months contribution in 2023 from the Detour Lake, Macassa and Fosterville mines as opposed to 234 days in the first nine months of 2022 following the closing of the Merger and higher sales volumes from the acquisition of the remaining 50% of the Canadian Malartic complex

 

Capital Expenditures

  • For a discussion of capital expenditures, please see below

 

Free Cash Flow Before Changes in Non-Cash Components of Working Capital

  • Third Quarter of 2023 – Free cash flow before changes in non-cash components of working capital increased when compared to the prior-year period due to the reasons described above relating to cash provided by operating activities and lower additions to property, plant and mine development
  • First Nine Months of 2023 – Free cash flow before changes in non-cash components of working capital increased when compared to the prior-year period due to the reasons described above relating to cash provided by operating activities, partially offset by lower additions to property, plant and mine development

 

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.

 

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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.

 

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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

  • The Nunavut Impact Review Board (“NIRB”) public hearing process was held in September 2023 as part of the regulatory process to amend the Meliadine mine’s permit to include future underground mining and associated saline water management infrastructure at the Pump, F-Zone and Discovery deposits. Construction and operation of a wind-farm is also included in this application

 

Community Relations, Governance and People

  • In September 2023, the Company celebrated the completion and commissioning of the Shaft #4 at the Macassa mine and commemorated the mine’s 90th anniversary. As part of the celebration, the Company announced a 10-year, $3 million commitment to the Canadian Cancer Society to improve the lives of people affected by cancer living in rural and remote communities in Northern Ontario by providing access to cancer prevention programs and support services. This includes improved facilitation of Northern Ontario Indigenous populations’ ability to source and receive culturally appropriate and relevant cancer resources and support
  • In August 2023, the Company signed a collaboration agreement with the Abitibiwinni First Nation (Pikogan) with the goal of fostering and sustaining a long term relationship between the Pikogan community and the LaRonde complex. The collaboration agreement sets out measures to increase participation in LaRonde’s activities with regards to training, jobs, business opportunities and environmental protection, as well as providing for annual financial contributions. In addition, while the Company is continuing its efforts to develop additional agreements with the Algonquin Nations of the Abitibi region, it remains supportive of a collective approach if that is the preferred approach of the Algonquin Nations of the Abitibi region
  • In September 2023, the Company announced the new Inunnguiniq project in Nunavut which will create partnerships with three significant community organizations and partners with total contributions of C$5 million: Breakfast Club of Canada (C$2.5 million); Illitaqsiniq (C$2.25 million); and the Arctic Rose Foundation (C$250,000). The objective of the project is to promote well-being through food security and “on the land” traditional activities in Nunavut

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower volumes processed and lower grades as a result of an extended planned shutdown at the mill and for the maintenance of the ore handling systems as well as changes in the mining method at the LaRonde mine that resulted in more lower grade ore being sourced from upper portions of the mine and a slower mining rate
  • First Nine Months of 2023 – Gold production decreased when compared to the prior-year period due to lower grades and lower volumes processed as a result of the reasons described above

 

_____________________________________
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

  • Third Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period primarily due to the timing of inventory sales, partially offset by higher underground maintenance costs and lower volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period primarily due to lower gold grades and the reasons outlined above, partially offset by a weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to higher underground mining costs attributable to higher labour and materials costs and higher mill services costs resulting from the transition to dry tailings disposition at the LaRonde mine and lower volume of ore milled. Production costs per ounce increased when compared to the prior-year period primarily as a result of higher production costs per tonne and fewer ounces of gold produced, partially offset by a weaker Canadian dollar relative to the U.S. dollar

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the reasons outlined above regarding the increase in production costs. Total cash costs per ounce increased when compared to the prior-year period primarily for the same reasons as the increase in minesite costs per tonne
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period primarily due to the reasons outlined above

 

Highlights

  • Production from the 11-3 Zone at LaRonde as planned began in the third quarter of 2023, with the first three stopes mined during the quarter. The 11-3 Zone is expected to add additional flexibility to the LaRonde mine production plan. Ore from the 11-3 Zone will be hoisted from the mid-shaft loading station
  • Maintenance of the underground ore handling system began in the third quarter of 2023 and is expected to continue in the fourth quarter of 2023. The LaRonde mine is expected to undergo partial, planned shutdowns (equivalent in aggregate to approximately a 10-day shutdown) during the fourth quarter of 2023 to update the main underground ore network and loading stations
  • During the third quarter of 2023, the LZ5 processing facility was placed on care and maintenance earlier than anticipated (previously expected in the fourth quarter of 2023). Ore from LZ5 will now be processed at the LaRonde mill to take advantage of its excess capacity
  • With the further westward development of the exploration drift on Level 215 at LaRonde, exploration drilling from the new drill platforms began during the third quarter of 2023 with results expected later in the year. Drilling is also ongoing from Level 9 into zones 3-1 and 3-4 and at depth in the East Mine area into zones 10 and 20S. Surface drilling west of LZ5 during the third quarter continued to infill inferred mineral resources in Ellison Zone 5
  • A detailed update on the Company’s global exploration program in 2023 is expected to be issued in January 2024

 

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

  • Third Quarter of 2023 – Gold production increased when compared to the prior-year period due to the increase in the Company’s ownership percentage of the Canadian Malartic complex between periods from 50% to 100% as a result of the Yamana Transaction, higher grades and higher throughput resulting from softer rock conditions at the Barnat pit
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period due to the same reasons outlined above

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the recognition of fair value adjustments to inventory resulting from the Yamana Transaction and a lower volume of ore milled. Production costs per ounce decreased when compared to the prior-year period due to more ounces of gold being produced in the current period, partially offset by the recognition of fair value adjustments to inventory resulting from the Yamana Transaction
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to the recognition of fair value adjustments to inventory resulting from the Yamana Transaction and a lower volume of ore milled. Production costs per ounce increased when compared to the prior-year period due to fewer ounces of gold being produced in the current period and the recognition of fair value adjustments to inventory resulting from the Yamana Transaction

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to higher production costs and lower volume of ore tonnes milled during the quarter. Total cash costs per ounce decreased when compared to the prior-year period primarily due to more ounces of gold produced and the weaker Canadian dollar relative to the U.S. dollar, partially offset by higher minesite costs per tonne
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the consumption of ore stockpiles and higher open pit mining costs. Total cash costs per ounce increased when compared to the prior-year period primarily due to fewer ounces of gold produced

 

Highlights

  • The Canadian Malartic complex delivered overall strong performance during the quarter. At the Barnat pit, high productivity of the equipment fleet resulted in higher volumes of ore drilled and mined than planned. At the mill, throughput was higher than anticipated primarily due to softer ultramafic ore from Barnat
  • Higher gold grades from the Barnat pit, coupled with a high mill throughput and better than planned mill recoveries, drove strong gold production in the third quarter of 2023
  • After a slow start early in the quarter related to delays in the commissioning of the paste backfill plant, production from the ramp reached a rate of 3,300 tpd in September. This compares to a targeted rate of 3,500 tpd for 2024. Gold production from underground was approximately 9,000 ounces in the third quarter of 2023
  • At the Canadian Malartic pit, the Company has started the construction of the central berm in preparation for in-pit tailings disposal, which is expected to start in mid-2024
  • An update on Odyssey project development, construction and exploration highlights is set out in the Update on Key Value Drivers and Pipeline Projects section above

 

Goldex – 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

  • Third Quarter of 2023 – Gold production increased when compared to the prior-year period primarily due to a higher volume of ore processed and higher gold grades
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades and higher volume of ore processed

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period due to higher underground production costs, partially offset by a higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, partially offset by more ounces of gold being produced in the current period and the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period due to higher underground mining and milling costs and timing of inventory sales in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, partially offset by the weaker Canadian dollar relative to the U.S. dollar

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to higher minesite costs per tonne, partially offset by the weaker Canadian dollar against the U.S. dollar
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the same reasons outlined above for the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne, partially offset by higher gold grades and the weaker Canadian dollar against the U.S. dollar

 

Highlights

  • Goldex had a strong safety performance with zero lost time accidents and restricted work during the third quarter of 2023 and in the first nine months of 2023
  • South Zone Sector 3 began production, ahead of schedule, during the third quarter of 2023. South Zone Sector 3 is expected to provide additional flexibility for the mining operations
  • The Akasaba West project remains on schedule and budget with work on the main access roads and water treatment facility completed in the third quarter of 2023. Achievement of commercial production remains expected to occur in the first quarter of 2024
  • Exploration drilling at Goldex during the third quarter of 2023 focused on three targets: the eastern extension of the South Zone in Sector 3, with the objective of converting mineral resources into mineral reserves and extending Sector 3 at depth and to the east below Level 140; the Deep 3 Zone in the deepest portion of the mine’s mineral resources; and the W Zone located at shallower underground depths approximately 200 metres west of the main deposit at Goldex

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to a lower volume of ore processed caused by a transformer failure, which resulted in unscheduled downtime at one of the two grinding circuits at the mill, partially offset by higher gold grades. Operations at the Detour Lake mill returned to normal levels at the end of the quarter
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period primarily due to timing of closing of the Merger, partially offset by the impact of the transformer failure described above

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period due to lower volume of ore milled in the current period, as a result of the transformer failure described above. Production costs per ounce increased when compared to the prior-year period due to fewer ounces of gold produced in the current period and the impact of the transformer failure described above, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne decreased when compared to the prior-year period due to a higher volume of ore milled in the current period, given the timing of the closing of the Merger in 2022, and the fair value adjustments to inventory made in the 2022 period, partially offset by the impact of the transformer failure described above. Production costs per ounce decreased when compared to the prior-year period due to the same reasons described above, partially offset by the weaker Canadian dollar relative to the U.S. dollar

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne remained unchanged when compared to the prior-year period despite lower throughput volumes. Total cash costs per ounce increased when compared to the prior year period due to lower gold grades and higher mining costs, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior year period primarily due to higher maintenance costs for mobile equipment and spare parts during the period. Total cash cost per ounce increased when compared to the prior year period primarily due to higher mining, maintenance and milling costs caused by higher fuel and electricity prices and lower gold grades, partially offset by the weaker Canadian dollar relative to the U.S. dollar

 

Highlights

  • In the third quarter of 2023, mill production was affected by a transformer failure which resulted in 25 days of reduced throughput (approximately 70% of normal operating levels), as further described below
  • During the third quarter of 2023, the open pit transitioned to a mining phase with higher grade ore, which is expected to last through the fourth quarter of 2023. Considering the higher grade profile and 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
  • An update on the multiple initiatives to increase mill throughput to 28.0 mtpa by 2025, potential scenarios to increase mill throughput beyond 28.0 mtpa and exploration highlights is set out in the Update on Key Value Drivers and Pipeline Projects section above

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades, partially offset by higher volume of ore processed
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period primarily due to the timing of the closing of the Merger and higher volume of ore processed, partially offset by lower gold grades

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to fewer ounces of gold produced in the current period, which was the result of lower grades, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period, given the timing of the closing of the Merger in 2022, and the fair value adjustments to inventory made in 2022. Production costs per ounce decreased when compared to the prior-year period due to more ounces of gold being produced in the current period for the same reasons described above and the weaker Canadian dollar relative to the U.S. dollar

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled, partially offset by higher mining costs resulting from higher input prices. Total cash costs per ounce increased when compared to the prior-year period primarily due to lower gold grades, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Minesite costs per tonne decreased when compared to the prior year period primarily due to the higher volume of ore milled, mainly due to the timing of the closing of the Merger. Total cash costs per ounce increased when compared to the prior year period due to higher mining costs, partially offset by more ounces of gold produced in the period and the weaker Canadian dollar relative to the U.S. dollar

 

Highlights

  • Macassa continues to demonstrate a robust operating performance, with the mill quarterly throughput in line with the record set in the second quarter of 2023
  • The sustained operational and cost performance reflects the substantial benefits derived from the operational improvement initiatives carried out at the mine over the last two years. These efforts have resulted in productivity gains, an increased adherence and compliance to plan and improved equipment availability
  • In the third quarter of 2023, gold grades were lower, as anticipated by the mining sequence, and remain in line with guidance on a year-to-date basis. The Company expects higher gold grades in the fourth quarter of 2023
  • At the Portal (ramp access to the NSUR and AK deposits), development in the quarter was ahead of plan and production from long hole stopes commenced. Gold production from NSUR was 2,778 ounces in the third quarter of 2023
  • The construction of the enclosure of the surface fans proceeded according to schedule in the third quarter of 2023. The overall ventilation system upgrade is currently on track for completion in the first quarter of 2024, when both fans are anticipated to reach full capacity
  • Exploration drilling at Macassa during the third quarter of 2023 focused on extending mineral resources in three target areas: Lower/West South Mine Complex (“SMC”), SMC East and Main Break. Results to date confirm gold mineralization east of Macassa, below the past-producing Kirkland Minerals mine, opening the potential for the discovery of mineralization under five more historical mines of the Main Break further east

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades, partially offset by higher volume of ore processed
  • First Nine Months of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades, partially offset by the higher volume of ore processed

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period due to the consumption of stockpiles and higher logistic costs, partially offset by the higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above and fewer ounces of gold being produced in the current period, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period due to higher underground and open pit mining costs and higher logistics costs, partially offset by higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above and fewer ounces of gold produced in the current period, partially offset by the weaker Canadian dollar relative to the U.S. dollar

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as the higher production cost per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above regarding production costs and fewer ounces of gold being produced, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as the higher production cost per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above regarding production costs and fewer ounces of gold being produced, partially offset by the weaker Canadian dollar relative to the U.S. dollar

 

Highlights

  • The processing plant continued to demonstrate overall strong performance, processing 470,000 tonnes in the third quarter of 2023
  • The open pit mine performed above plan in the third quarter of 2023, partially offsetting lower production from the underground mine which was affected by lower equipment availability and development performance
  • The Phase 2 mill expansion is expected to be completed in mid-2024 and the processing rate ramp-up is expected to increase throughput to 6,000 tpd by year-end 2024. In the third quarter of 2023, work on the Phase 2 mill expansion continued as mechanical piping and electrical work was ongoing at the carbon in leach building and at the power plant. Work on the secondary grinding building is nearly complete, which will allow the completion of mechanical and electrical work inside the building during the winter period
  • The waterline installation is underway and is expected to be completed in 2024, allowing for utilization in the summer of 2025
  • The NIRB public hearing process was held in September 2023 as part of the regulatory process to amend the Meliadine mine’s permit to include future underground mining and associated saline water management infrastructure at the Pump, F-Zone and Discovery deposits. Construction and operation of a wind farm is also included in the application
  • At the Tiriganiaq deposit, the ongoing extension of the exploration drift to the east and west is providing access to new areas of the deposit, and during the third quarter resulted in continued positive drill results in areas towards the east at depth, including hole ML425-9563-D21 intersecting 11.4 g/t gold over 3.1 metres at 757 metres depth in Lode 1000. Drilling from surface in the first nine month of 2023 in the easternmost portion of Tiriganiaq is showing the potential to extend underground mineral reserves towards the east at relatively shallow depth
  • Third quarter of 2023 exploration activities also focused on conversion drilling at the Wesmeg North deposit, and conversion and exploration drilling in shallower portions of the Pump North and Pump South deposits

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower grades, partially offset by the higher volume of ore processed
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades and the volume of ore  processed

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period due to a higher stripping ratio at the open pit and the consumption of stockpiles, partially offset by the higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period for the same reasons outlined above as well as fewer ounces of gold being produced in the current period and the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period due to a higher stripping ratio at the open pit and the consumption of stockpiles, partially offset by the higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, partially offset by more ounces of gold being produced in the current period and the weaker Canadian dollar relative to the U.S. dollar

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above and fewer gold ounces produced, partially offset by the weaker Canadian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, partially offset by the weaker Canadian dollar relative to the U.S. dollar and higher gold grades

 

Highlights

  • The open pit operation continued to deliver a robust performance with a high compliance to plan despite delays related to an early caribou migration and poor weather conditions
  • The underground operation ramp up progressed well during the third quarter of 2023. Improvements in equipment availability and productivity resulted in record quarterly production drilling and ore hauled
  • Throughput improved significantly during the third quarter of 2023, which was driven by the continued utilization of the high pressure grinding rolls and grinding circuit optimization
  • The Meadowbank complex is expected to generate strong returns in 2024 and 2025 with annual production between 470,000 and 505,000 ounces, with production expected to decline in 2026 and 2027 as the current mineral reserve base is depleted. Exploration efforts are underway with the objective of delineating additional mineralization at Amaruq and work is ongoing to evaluate the potential to extend the mine life of the Whale Tail and IVR pits beyond 2027

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower grade from mining sequencing and the lower volume of ore processed
  • First Nine Months of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower grades from mining sequencing, partially offset by the higher volume of ore processed and the timing of the closing of the Merger

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period due to lower mining and milling costs and the weaker Australian dollar relative to the U.S. dollar. Production costs per ounce increased when compared to the prior-year period due to fewer ounces produced in the period, partially offset by the lower mining and milling costs and the weaker Australian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Production costs per tonne decreased when compared to the prior-year period due to fair value adjustments to inventory on the purchase price allocation recognized in the first nine months of 2022 with no comparative recognition occurring in 2023. Production costs per ounce decreased when compared to the prior-year period for the same reasons above as well as the effect of the weaker Australian dollar relative to the U.S. dollar, partially offset by fewer ounces produced in the period due to lower gold grades

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period due to lower mining and milling costs, partially offset by the lower volume of ore milled in the current period. Total cash costs per ounce increased when compared to the prior-year period due to fewer ounces produced in the period as a result of lower gold grades, partially offset by the lower mining and milling costs and the weaker Australian dollar relative to the U.S. dollar
  • First Nine Months of 2023 – Minesite costs per tonne decreased when compared to the prior year period primarily due to the higher volume of ore milled. Total cash costs per ounce increased when compared to the prior year period primarily due to fewer ounces of gold produced in the current quarter as a result of lower gold grades, partially offset by the weaker Australian dollar relative to the U.S. dollar

 

Highlights

  • The Company is currently advancing an upgrade of the primary ventilation system to sustain the mining rate in the Lower Phoenix zones in future years. In the third quarter of 2023, the Company completed optimization studies that are expected to de-risk construction of the ventilation raises and the operation in the long term. Some of the proposed changes include the relocation of the ventilation raises in the Lower Phoenix zone, further removed from existing mine infrastructure than initially planned, and the installation of additional ground support in the raises. The new design will require additional development and the Company expects the project to be completed by early 2025
  • Subsequent to the optimization studies, the Company gave priority to the key underground development associated with the ventilation raises and delayed the extraction of lower grade stopes to accommodate the increased waste haulage from development
  • The lower ore volume mined in the third quarter of 2023 led to a reduced throughput at the mill, which, combined with a lower grade sequence, resulted in lower gold production than planned. The Company expects to achieve similar production levels in the fourth quarter of 2023 as the mine continues to prioritize the underground development to advance the primary ventilation upgrade
  • The Company now expects full year 2023 production at Fosterville of approximately 285,000 ounces of gold, compared to prior guidance of 295,000 to 315,000 ounces
  • Exploration drilling at Fosterville during the third quarter of 2023 continued to target the Lower Phoenix deep extension from the 3912 drill drive and the Robbins Hill area
  • In the Lower Phoenix, a key target is the Cardinal fault, which is a hanging wall splay from the Swan structure. Highlight hole UDH4761 intersected 10.8 g/t gold over 10.0 metres in the Cardinal splay at 1,828 metres depth, approximately 190 metres down-plunge of the mineral reserves. The result is the deepest visible-gold intercept in the Cardinal splay achieved to date

 

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

  • Third Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades, partially offset by the higher volume of ore milled
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades, partially offset by the lower volume of ore tonnes milled

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above and fewer ounces of gold produced in the current period
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period due to the lower volume of ore milled in the current period. Production costs per ounce remained unchanged when compared to the prior-year period

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period due to higher mining volumes, partially offset by higher mining costs from higher input prices. Total cash costs per ounce increased when compared to the prior-year period due to stockpile consumption, fewer ounces produced and the strengthening of the Euro relative to the US dollar between periods
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior year period primarily due to higher mining costs from higher input prices, partially offset by lower underground mining costs. Total cash costs per ounce decreased when compared to the prior year period due to the timing of inventory sales and more ounces of gold produced

 

Highlights

  • For a discussion of the expected timing and implications of the SAC decision please see the “Third quarter 2023 highlights” section above
  • In the third quarter of 2023, Kittila continued to deliver a strong operational performance, setting a monthly mill throughput record of approximately 195,000 tonnes in July 2023 and processing approximately 527,000 tonnes in the quarter, in line with the 2.0 mtpa rate
  • At the mine, the production hoist was commissioned and approximately 226,000 tonnes were hoisted in the third quarter of 2023
  • A decline in input costs for electricity, contractors and explosives, coupled with the commissioning of the production shaft, has led to a notable decrease in minesite costs per tonne during August and September 2023 when compared to the first seven months of the year
  • The successful implementation of several environmental initiatives, including the nitrogen removal plant, has bolstered Kittila’s environmental performance in the first nine months of 2023. The Company expects Kittila’s emissions to stay below 75% of the permitted limits for the full year even if operating at a rate of 2.0 mtpa
  • Exploration drilling during the third quarter of 2023 was highlighted by a significant, shallow intersection in an underexplored, parallel mineralized structure named the East Zone located approximately 140 metres east of the mine’s producing Main Zone and outside current mineral resources. Hole SUU23004 in the East Zone intersected 9.9 metres grading 11.8 g/t gold at 208 metres depth, including 4.8 metres grading 18.2 g/t gold at 206 metres depth, and follow-up drilling is planned

 

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

  • Third Quarter of 2023 – Gold production increased when compared to the prior-year period primarily due to the higher volume of ore milled, partially offset by lower gold grades
  • First Nine Months of 2023 – Gold production increased when compared to the prior-year period primarily due to higher volume of ore milled, partially offset by lower gold grades

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period, partially offset by the increase in milling costs. Production costs per ounce increased when compared to the prior-year period due to higher milling costs and the strengthening of the Mexican Peso relative to the US dollar between periods, partially offset by more ounces of gold produced in the current period
  • First Nine Months of 2023 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period, partially offset by the increase in open pit mining and milling costs. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above and the strengthening of the Mexican Peso relative to the US dollar between periods

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period due to higher volume of ore processed, partially offset by higher open pit mining and milling costs from higher input prices. Total cash costs per ounce increased when compared to the prior-year period due to higher open pit mining and milling costs and the stronger Mexican Peso relative to the US dollar between periods, partially offset by more ounces of gold produced in the period
  • First Nine Months of 2023 – Minesite costs per tonne decreased when compared to the prior year period primarily due to higher volume of ore processed, partially offset by higher open pit mining and milling costs from higher input prices. Total cash costs per ounce decreased when compared to the prior year period for the same reasons outlined above and the stronger Mexican Peso relative to the US dollar between periods

 

Highlights

  • Higher than planned mill throughput in the third quarter of 2023 was enabled by solid mining performance in both the underground and open pit operations. This performance helped mitigate lower gold grades resulting from higher mining dilution in the underground operations
  • Production from the San Eligio zone commenced in the third quarter of 2023 and is expected to ramp up in the fourth quarter of 2023, providing increased production flexibility to the Pinos Altos mine
  • Exploration drilling during the third quarter of 2023 returned positive gold and silver results at shallow depths in the Puerto Amarillo and Moctezuma target located in the northwest, lateral extensions of the two main mineralized structures at Pinos Altos
  • At the advanced underground Cubiro project in the northwest of the property, exploration drilling totalled 8,277 metres in 36 holes year to date, and confirmed and extended the main ore shoots in the Central, East and North Cubiro zones. The good results from near surface infill drilling may have a positive impact on the mineral reserves and mineral resources and the mine plan

 

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

  • Third Quarter of 2023 – Gold production increased when compared to the prior-year period primarily due to higher gold grades, partially offset by fewer tonnes of ore placed
  • First Nine Months of 2023 – Gold production decreased when compared to the prior-year period primarily due to fewer tonnes of ore placed as the open pit gets depleted, partially offset by higher gold grades

 

Production Costs

  • Third Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period primarily due to consumption of heap leach ore stockpiles, timing of inventory sales, the strengthening of the Mexican Peso relative to the US dollar between periods and the lower volume of ore placed in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, partially offset by more ounces of gold produced in the current period
  • First Nine Months of 2023 – Production costs per tonne increased when compared to the prior-year period due to consumption of heap leach ore stockpiles, the strengthening of the Mexican Peso relative to the US dollar between periods and lower volume of ore placed in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above, and fewer ounces of gold produced in the current period

 

Minesite and Total Cash Costs

  • Third Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the lower volume of ore placed in the current period. Total cash costs per ounce decreased when compared to the prior-year period due to more ounces of gold produced in the period, partially offset by the strengthening of the Mexican Peso relative to the US dollar between periods
  • First Nine Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the lower volume of ore placed in the current period. Total cash costs per ounce increased when compared to the prior year period primarily due to fewer ounces of gold produced in the current period and the strengthening of the Mexican Peso relative to the US dollar between periods

 

Highlights

  • Open pit performance benefited from high availability and productivity of loaders and shorter haulage distances, resulting in approximately 60% more tonnes moved than planned in the third quarter of 2023
  • Gold production in the third quarter of 2023 was better than planned, primarily as a result of higher gold grades than anticipated at the bottom of the open pit
  • Mining and crushing activities are expected to be completed in the fourth quarter of 2023, with residual leaching to continue into 2024

 

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.

 

Posted October 26, 2023

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