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Stock Symbol:AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise noted)
Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM)(“Agnico Eagle” or the “Company”) today reported financial and operating results for the third quarter of 2024.
“We are excited to report record financial results for a fourth consecutive quarter. Our focus on operational performance, cost control and capital discipline has allowed us to deliver the leverage to record gold prices to our shareholders. This quarter we repaid $375 million of debt, increased our cash position and continued to provide strong returns to shareholders,” said Ammar Al-Joundi, Agnico Eagle’s President and Chief Executive Officer. “We remain focused on realizing the full potential of our assets through continuous improvement and by advancing our pipeline of projects and supplemental exploration program. Strong drill results this quarter continue to demonstrate significant exploration upside at several of our mines and key pipeline projects, including the extension of the East Gouldie deposit at Canadian Malartic and the expansion of high-grade mineralization at Patch 7 at Hope Bay,” added Mr. Al-Joundi.
Third quarter 2024 highlights:
— Solid quarterly gold production and cost performance – Payable gold production1 was 863,445 ounces at production costs per ounce of $908, total cash costs per ounce2 of $921 and all-in sustaining costs (“AISC”) per ounce2 of $1,286
— Continued to deliver reliable operating and cost performance – Gold production and costs in the third quarter of 2024 were in line with plan, driven by strong production in Nunavut and at Macassa and Fosterville. The Company’s continued focus on operational efficiencies and cost optimization drove record quarterly throughput and mining rates at multiple sites
— Well positioned to achieve 2024 gold production, cost and capital expenditures guidance – The Company is tracking well to meet its gold production guidance for the full year 2024. Total cash costs per ounce, AISC per ounce and capital expenditures guidance for 2024 remain unchanged
— Record quarterly adjusted net income3 – The Company reported quarterly net income of $567.1 million or $1.13 per share and adjusted net income of $572.6 million or $1.14 per share
— Record quarterly cash provided by operating activities and free cash flow – The Company generated record cash provided by operating activities of $1,084.5 million or $2.16 per share ($1,027.5 million or $2.05 per share before changes in non-cash working capital balances4) and free cash flow4 of $620.4 million or $1.24 per share ($563.4 million or $1.12 per share before changes in non-cash working capital balances4)
— Strengthening financial position with further reduction of debt – The Company increased its cash position by $55.2 million to $977.2 million as at September 30, 2024. The Company continued to reduce net debt5 in the third quarter of 2024, repaying the $100.0 million 5.02% Series B Senior Notes at maturity and repaying $275.0 million of the $600.0 million unsecured term loan facility drawn in 2023. Total debt outstanding was $1,467.2 million as at September 30, 2024. Year-to-date, net debt has been reduced by $1,014.4 million, from $1,504.4 million at the beginning of the year to $490.0 million as at September 30, 2024
— Continued focus on shareholder returns – In the third quarter of 2024, the Company’s Board of Directors declared a quarterly dividend of $0.40 per share. Additionally, the Company repurchased 362,343 common shares at an average share price of $82.86 for an aggregate of $30.0 million through its normal course issuer bid (“NCIB”)
— Update on key value drivers and pipeline projects
— Detour Lake – In the third quarter of 2024, the Company advanced the site preparation for the underground project, including the completion of the pad that will host the surface infrastructure for the underground project and the removal of the overburden for the portal. Infill drilling into the high-grade corridor in the West Pit zone continued to confirm higher grades and a mineralized structure amenable to underground mining. Highlights include 22.5 grams per tonne (“g/t”) gold over 12.9 metres at 490 metres depth and 15.0 g/t gold over 18.9 metres at 573 metres depth. Drilling into the West Extension zone to the west of current mineral resources saw highlights of 28.8 g/t gold over 3.6 metres at 570 metres depth and 11.7 g/t gold over 3.3 metres at 731 metres depth
— Odyssey mine at Canadian Malartic – In the third quarter of 2024, ramp development and shaft sinking activities progressed on schedule, reaching a depth of 873 metres and 839 metres, respectively, and the excavation of the temporary shaft loading station on level 64 was completed. Surface construction progressed as planned, with a focus on the service hoist and the operations complex. Recent exploration drilling continued to return good results in the eastern extension of the East Gouldie deposit up to 760 metres east of current mineral resources, including 3.0 g/t gold over 51.5 metres at 1,349 metres depth and 5.1 g/t gold over 8.2 metres at 1,455 metres depth. In the upper extension of East Gouldie, conversion drilling near the Odyssey shaft has returned intersections including 3.3 g/t gold over 20.8 metres at 814 metres depth. Results from the ongoing exploration program continue to show the potential to add significant mineral resources along extensions of the main East Gouldie deposit
— Madrid at Hope Bay – Exploration drilling during the third quarter of 2024 totalled 33,100 metres and continued to return wide, high-grade mineralized intervals at the Patch 7 zone, including 18.3 g/t gold over 16.4 metres at 479 metres depth, 16.8 g/t gold over 27.3 metres at 436 metres depth and 11.9 g/t gold over 30.4 metres at 394 metres depth, further confirming the greater thicknesses and higher gold grades in this area compared to the rest of the Madrid deposit
__________________________ 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 and all-in sustaining costs or AISC per ounce are non-GAAP ratios that are not standardized financial measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP measures and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding Certain Measures of Performance" below. 3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. 4 Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below. 5 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 and a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance" below.
Third Quarter 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle’s senior management will host a conference call on Thursday, October 31, 2024 at 11:00 AM (E.D.T.) to discuss the Company’s financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may register on the Company’s website at www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.945.7677 or toll-free 1.888.699.1199 to be entered into the call by an operator. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
To join the conference call by phone without operator assistance, you may register your phone number here30 minutes prior to the scheduled start of the call to receive an instant automated call back.
Replay Archive:
Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 80122#. The conference call replay will expire on November 30, 2024.
The webcast, along with presentation slides, will be archived for 180 days on the Company’s website.
Third Quarter 2024 Production and Cost Results
Production and Cost Results Summary
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023*
Gold production (ounces) 863,445 850,429 2,637,935 2,536,446
Gold sales (ounces) 855,899 843,097 2,609,192 2,489,503
Production costs per ounce $ 908 $ 893 $ 887 $ 850
Total cash costs per ounce $ 921 $ 898 $ 897 $ 857
AISC per ounce $ 1,286 $ 1,210 $ 1,214 $ 1,162
* Production and Cost Results Summary reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% thereafter.
Gold Production
— Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from the Nunavut operations, Macassa and Detour Lake, partially offset by lower production at Canadian Malartic and La India
— First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from Canadian Malartic, Meadowbank and Macassa, partially offset by lower production at Fosterville and La India
Production Costs per Ounce
— Third Quarter of 2024 – Production costs per ounce increased when compared to the prior-year period primarily due to higher royalties arising from higher gold prices, partially offset by higher production and the benefit of the weaker Canadian dollar during the period
— First Nine Months of 2024 – Production costs per ounce increased when compared to the prior-year period primarily due to higher royalties arising from higher gold prices and higher production costs at Canadian Malartic related to underground mining operations, partially offset by higher production and the benefit of the weaker Canadian dollar during the period
Total Cash Costs per Ounce
— Third Quarter and First Nine Months of 2024 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to the reasons described above for the increase in production costs per ounce
AISC per Ounce
— Third Quarter and First Nine Months of 2024 – AISC per ounce increased when compared to the prior-year periods due to the factors causing higher total cash costs per ounce and anticipated higher sustaining capital expenditures primarily at Canadian Malartic and Detour Lake, partially offset by higher production during the period
Third Quarter 2024 Financial Results
Financial Results Summary
Three Months Ended Nine Months Ended
September 30, September 30,
2024 20236 2024 20236
Realized gold price ($/ounce)7 $ 2,492 $ 1,928 $ 2,297 $ 1,933
Net income ($ millions)8 $ 567.1 $ 174.8 $ 1,386.3 $ 2,315.4
Adjusted net income ($ millions) $ 572.6 $ 216.1 $ 1,485.3 $ 806.7
EBITDA ($ millions)9 $ 1,258.6 $ 722.0 $ 3,264.2 $ 3,878.4
Adjusted EBITDA ($ millions)9 $ 1,256.6 $ 768.4 $ 3,362.0 $ 2,394.0
Cash provided by operating activities ($ millions) $ 1,084.5 $ 502.1 $ 2,829.0 $ 1,873.7
Cash provided by operating activities before changes in non-cash working capital balances ($ millions) $ 1,027.5 $ 668.7 $ 2,790.8 $ 1,970.5
Capital expenditures10 $ 485.8 $ 406.4 $ 1,265.1 $ 1,164.2
Free cash flow($ millions) $ 620.4 $ 82.3 $ 1,573.3 $ 645.3
Free cash flow before changes in non-cash working capital balances($ millions) $ 563.4 $ 248.8 $ 1,535.0 $ 742.1
Net income per share (basic) $ 1.13 $ 0.35 $ 2.78 $ 4.76
Adjusted net income per share (basic) $ 1.14 $ 0.44 $ 2.97 $ 1.66
Cash provided by operating activities per share (basic) $ 2.16 $ 1.01 $ 5.67 $ 3.85
Cash provided by operating activities before changes in non-cash working capital balances per share (basic) $ 2.05 $ 1.35 $ 5.59 $ 4.05
Free cash flow per share (basic) $ 1.24 $ 0.17 $ 3.15 $ 1.33
Free cash flow before changes in non-cash working capital balances per share (basic) $ 1.12 $ 0.50 $ 3.07 $ 1.53
Net Income
— Third Quarter of 2024
— Net income was $567.1 million ($1.13 per share). This result includes the following items (net of tax): derivative gains on financial instruments of $11.7 million ($0.02 per share), non-recurring tax adjustments and foreign currency translation gains on deferred tax liabilities of $5.5 million ($0.01 per share), net asset disposal losses of $3.7 million ($0.01 per share) and foreign exchange and other adjustments of $8.0 million (0.01 per share)
— Excluding the above items results in adjusted net income of $572.6 million or $1.14 per share
— Included in net income and not adjusted above, is a non-cash stock option expense of $2.1 million (less than $0.01 per share)
— Net income of $567.1 million in the third quarter of 2024 increased compared to net income of $174.8 million in the prior-year period primarily due to stronger mine operating margins11 resulting from higher realized gold prices and higher sales volumes, gains on derivative financial instruments in the current period and lower amortization expenses (primarily at Meadowbank, Canadian Malartic and Detour Lake), partially offset by higher income and mining tax expenses and higher production expenses
— First Nine Months of 2024 – Net income of $1,386.3 million decreased compared to the prior-year period net income of $2,315.4 million primarily due to a remeasurement gain at Canadian Malartic in the prior period and higher income and mining tax expenses, partially offset by higher operating margins from higher realized gold prices and higher sales volumes. The remeasurement gain in the prior period is from the application of purchase accounting relating to a business combination attained in stages, which required the remeasurement of the Company’s previously held 50% interest in Canadian Malartic to fair value.
Adjusted EBITDA
— Third Quarter of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to stronger mine operating margins from higher realized gold prices and higher sales volumes
— First Nine Months of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to the reasons set out above for the third quarter of 2024 and as a result of the acquisition of the remaining 50% of Canadian Malartic
Cash Provided by Operating Activities
— Third Quarter and First Nine Months of 2024 – Cash provided by operating activities and cash provided by operating activities before changes in non-cash working capital balances increased when compared to the prior-year periods primarily due to the reasons described above related to the increases in adjusted EBITDA
Free Cash Flow Before Changes in Non-cash Working Capital Balances
— Third Quarter and First Nine Months of 2024 – Free cash flow before changes in non-cash working capital balances increased when compared to the prior-year periods due to the reasons described above related to cash provided by operating activities, partially offset by higher additions to property, plant and mine development
____________________ 6 Certain previously reported line items have been restated to reflect the final purchase price allocation related to the acquisition of the Canadian assets of Yamana Gold Inc. (the "Yamana Transaction") including the 50% of Canadian Malartic that the Company did not own. Reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% thereafter. 7 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold. 8 For the first quarter of 2023, includes a $1.5 billion revaluation gain on the 50% interest the Company owned in Canadian Malartic prior to the Yamana Transaction on March 31, 2023. 9 "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 these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. 10 Includes capitalized exploration. Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of Performance" below. 11 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
Capital Expenditures
In the third quarter of 2024, capital expenditures were $437.2 million and capitalized exploration expenditures were $48.6 million, for a total of $485.8 million. Expected capital expenditures (including capitalized exploration) remain in line with the updated guidance for the full year 2024. Further details are set out in the “2024 Guidance” section below.
The following table sets out a summary of capital expenditures (including sustaining capital expenditures and development capital expenditures) and capitalized exploration in the third quarter of 2024 and the first nine months of 2024.
Summary of Capital Expenditures
($ thousands)
Capital Expenditures* Capitalized Exploration
Three Months Nine Months Three Months Nine Months
Ended Ended Ended Ended
Sep 30, 2024 Sep 30, 2024 Sep 30, 2024 Sep 30, 2024
Sustaining Capital Expenditures
LaRonde $ 19,302 $ 63,125 $ 473 1,349
Canadian Malartic 36,789 91,887 - -
Goldex 16,505 39,912 753 2,536
Detour Lake 77,638 189,247 - -
Macassa 12,200 28,389 451 1,259
Meliadine 19,716 53,664 2,321 6,148
Meadowbank 30,216 71,718 - -
Fosterville 9,509 22,298 - -
Kittila 17,537 51,813 316 1,181
Pinos Altos 7,099 18,190 742 1,662
La India - 22 - -
Other 1,251 3,520 144 989
Total Sustaining Capital Expenditures $ 247,762 $ 633,785 $ 5,200 $ 15,124
Development Capital Expenditures
LaRonde $ 16,442 $ 61,168 $ - -
Canadian Malartic 41,824 121,028 1,510 3,702
Goldex 1,830 8,886 - -
Detour Lake 52,199 121,273 9,051 26,150
Macassa 27,550 62,008 7,521 25,225
Meliadine 21,070 58,164 1,888 8,694
Meadowbank 7 (20) - -
Fosterville 8,402 27,016 2,531 9,497
Kittila 775 2,971 1,171 5,730
Pinos Altos 355 1,806 10 14
San Nicolás project 3,422 15,077 - -
Other 15,530 23,547 19,745 34,270
Total Development Capital Expenditures $ 189,406 $ 502,924 $ 43,427 $ 113,282
Total Capital Expenditures $ 437,168 $ 1,136,709 $ 48,627 $ 128,406
* Excludes capitalized exploration
2024 Guidance
Based on the operational performance in the first nine months of 2024, the Company is tracking well to meet the mid-point of gold production guidance for the full year 2024. In addition, total cash costs per ounce,AISC per ounce and capital expenditures guidance for 2024 remain unchanged. A summary of the Company’s guidance is set out below.
2024 Guidance Summary
(In millions other than per ounce measures or as otherwise stated)
2024 2024
Range Mid-Point
Gold Production (ounces) 3,350,000 3,550,000 3,450,000
Total cash costs per ounce $875 $925 $900
AISC per ounce $1,200 $1,250 $1,225
Exploration and corporate development - - $271
Depreciation and amortization expense - - $1,560
General & administrative expense $175 $195 $185
Other costs $75 $90 $83
Tax rate (%) 33% 38% 35%
Cash taxes $400 $500 $450
Capital expenditures (excluding capitalized exploration) $1,600 $1,700 $1,650
Capitalized exploration - - $187
Record Free Cash Flow Generation Alongside Capital Discipline Continue to Strengthen Financial Position and Commitment to Shareholder Returns
Cash and cash equivalents increased by $55.2 million when compared to the prior quarter primarily due to higher cash provided by operating activities as a result of higher revenues from higher realized gold prices and favourable changes in non-cash working capital balances, partially offset by higher cash used in financing activities related to $375.0 million repayment of debt, and higher cash used in investing activities from higher capital expenditures and higher purchases of equity securities and other investments.
As at September 30, 2024, the Company’s total long-term debt was $1,467.2 million, a reduction of $374.5 million from the second quarter of 2024. On July 24, 2024, $100.0 million was repaid with cash on hand on the 2012 Series B 5.02% Senior Notes on maturity. In addition, a total of $275.0 million was prepaid of the $600.0 million outstanding on the term loan facility during the quarter, further strengthening the Company’s investment grade balance sheet. The remaining $325.0 million of indebtedness under the term loan facility is due and payable on April 21, 2025.
No amounts were outstanding under the Company’s unsecured revolving bank credit facility as at September 30, 2024, and available liquidity remained at approximately $2.0 billion, not including the uncommitted $1.0 billion accordion feature.
The following table sets out the calculation of net debt, which decreased by$429.7 million when compared to the prior quarter as a result of the debt repayments and an increase in cash and cash equivalents.
Net Debt Summary
($ millions)
As at As at
Sep 30, 2024 Jun 30, 2024
Current portion of long-term debt $ 415.0 $ 740.0
Non-current portion of long-term debt 1,052.2 1,101.7
Long-term debt $ 1,467.2 $ 1,841.7
Less: cash and cash equivalents (977.2) (922.0)
Net debt $ 490.0 $ 919.7
Hedges
Approximately 68% of the Company’s remaining estimated Canadian dollar exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements above 1.34C$/US$. Approximately 26% of the Company’s remaining estimated Euro exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements below 1.10 US$/EUR. Approximately 62% of the Company’s remaining Australian dollar exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements above 1.46 A$/US$. Approximately 19% of the Company’s remaining estimated Mexican peso exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements above 18.00 MXP/US$. The Company’s full year 2024 cost guidance is based on assumed exchange rates of 1.34 C$/US$, 1.10 US$/EUR, 1.45 A$/US$ and 16.50 MXP/US$.
With the 2024 sealift at the Company’s Nunavut operations largely completed, approximately 42% of the Company’s remaining estimated diesel exposure for 2024 is hedged at an average price of $0.76 per litre (excluding transportation and taxes), which is expected to reduce the Company’s exposure to diesel price volatility in 2024. The Company’s 2024 cost guidance is based on an assumed diesel price of $0.80 per litre (excluding transportation and taxes).
Based on these 2024 hedge positions, the Company expects to continue to benefit from the positive foreign exchange impact on all its operating currencies, as well as the positive impact from diesel exposure when compared to 2024 cost guidance. 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 for the balance of 2024 and 2025. Hedging positions are not factored into 2024 or future guidance.
Shareholder Returns
Dividend Record and Payment Dates for the Fourth Quarter of 2024
Agnico Eagle’s Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on December 16, 2024 to shareholders of record as of November 29, 2024. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2024 Fiscal Year
Record Date Payment Date March 1, 2024 March 15, 2024 May 31, 2024 June 14, 2024 August 30, 2024 September 16, 2024 November 29, 2024* December 16, 2024*
*Declared
Dividend Reinvestment Plan
In the third quarter of 2024, the Company amended the terms of its dividend reinvestment plan (the “DRIP”) to provide the flexibility to adjust the discount provided under the DRIP to between no discount (0%) and 5%. For the dividend payable on December 16, 2024 to shareholders of record as of November 29, 2024, the discount provided for under the DRIP will be 1%. If the discount is altered or eliminated by the Company in the future, the Company will include information regarding the change in discount from such level in a news release prior to the effectiveness of the change.
For a copy of the amended and restated DRIP, and for additional information on the Company’s DRIP, see: 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.
Normal Course Issuer Bid
The Company believes that its NCIB is a flexible and complementary tool that, together with its quarterly dividend, is part of the Company’s overall capital allocation program and generates value for shareholders. The Company can purchase up to $500.0 million of its common shares under the NCIB, subject to a maximum of 5% of its issued and outstanding common shares. Purchases under the NCIB may continue for up to one year from the commencement day on May 4, 2024. In the third quarter of 2024, the Company repurchased 362,343 common shares for an aggregate of $30.0 million through the NCIB. In the first nine months of 2024, the Company repurchased 1,500,386 common shares for an aggregate of $99.9 million under the NCIB and the Company’s previous NCIB, at anaverage share priceof $66.58.
Third Quarter 2024 Environment, Social and Governance Highlights
— International Mine Rescue Competition – The Emergency Response Team from Nunavut won the overall International Mine Rescue Competition (“IMRC”) hosted by the National Mining Agency in Colombia, highlighting the strength of the Company’s commitment to mine safety and rescue excellence. The IMRC is a highly regarded global event organized by the International Mine Rescue Body to promote mine rescue operations at the international level and to improve mine rescue knowledge and practices through global cooperation
— Donation to the Université du Québec en Abitibi-Témiscamingue (UQAT) – A ceremony was held to celebrate the opening of a new outdoor space on the pavilion grounds at the UQAT, Val-d’Or Campus to foster teaching, sharing and reconciliation among Indigenous and non-Indigenous students. The Company is a significant donor for the new space, which was designed to promote intercultural connections and celebrate Indigenous cultures
— Reforestation event with the Huajumar community in Mexico – In the third quarter of 2024, an event was held to plant more than 1,500 native pine trees in an area previously affected by forest fires. Approximately 280 people participated including kindergarten, elementary and high school students and the COEPI group (Comisión Estatal para Pueblos IndÃgenas)
— Royal Canadian Mint launched new gold coin entirely sourced from Detour Lake – The Royal Canadian Mint issued its newest Gold Maple Leaf one ounce gold bullion coin sourced completely from Detour Lake. The Company was selected as a result of its commitment to high standards of responsibility and sustainability
Update on Key Value Drivers and Pipeline Projects
Highlights on key value drivers, including Odyssey, Detour Lake underground, Hope Bay and San Nicolás are set out below. Details on certain mine expansion projects (Detour Lake mill optimization and Meliadine Phase 2 expansion) are set out in the applicable operational sections of this news release.
Odyssey Project
In the third quarter of 2024, ramp development continued to progress on schedule, and as at September 30, 2024, the main ramp reached a depth of 873 metres. At this depth, it will split into two priority faces: one advancing towards the mid-shaft loading station on level 111 and the other face extending towards the bottom of the orebody. Additionally, the Company continued to develop the main ventilation system, with the fresh air ramp between Odyssey South and East Gouldie completed in the quarter.
In the third quarter of 2024, shaft sinking continued to progress on schedule and, as at September 30, 2024, the shaft reached a depth of 839 metres. During the quarter, the excavation of the temporary loading pocket between levels 60 and 66 was completed, along with the detailed engineering and procurement. The construction team was mobilized and initiated construction at the end of September 2024. The temporary loading station is expected to be commissioned by mid-2025. The design of the mid-shaft loading station between levels 102 and 111 is in progress. This station will include a material handling system for ore and waste, along with support infrastructure, including a maintenance shop. Excavation of the mid-shaft loading station is expected to begin in the second quarter of 2025.
Surface construction progressed on schedule and on budget in the third quarter of 2024, with focus areas including the main hoist building and the operational complex. At the main hoist building, the installation of the electrical components and controls for the service hoist were completed, followed by the testing of the hoist without ropes. Rope installation is planned for the fourth quarter of 2024 and the service hoist is expected to be commissioned in the first half of 2025. In the quarter, the construction of the main office and service building commenced, initiating the building foundations. The construction of the main office building is expected to be completed by the end of 2025.
Exploration drilling at the Odyssey mine and regional exploration drilling around the mine totalled 68,800 metres during the third quarter (145,900 metres during the first nine months of 2024) with up to 11 underground drill rigs and 13 surface drill rigs in operation, primarily targeting the East Gouldie and Odyssey deposits and regional exploration targets in the eastern portion of the property.
Drilling into the lower eastern extension of the East Gouldie mineralized envelope intersected high grade mineralization up to 760 metres east of the current mineral resources, with highlights that included: hole MEX24-316 returning 3.0 g/t gold over 51.5 metres at 1,349 metres depth, including 7.5 g/t gold over 6.1 metres at 1,347 metres depth, and 3.4 g/t gold over 16.6 metres at 1,437 metres depth; hole MEX24-311W returning 5.1 g/t gold over 8.2 metres at 1,455 metres depth; and hole MEX24-311WA returning 4.5 g/t gold over 9.7 metres at 1,497 metres depth.
Drilling into this new portion of the deposit during the first nine months of 2024 has consistently intersected significant gold mineralization, demonstrating the potential to add mineral resources at depth to the east of the main East Gouldie orebody.
In the upper extension of the East Gouldie deposit near the Odyssey shaft and above current mineral resources, underground conversion drilling intersected multiple long intervals of mineralization in an area that extends 500 metres laterally and 400 metres vertically, with highlights that included: hole UGEG-075-007 returning 3.3 g/t gold over 20.8 metres at 814 metres depth, including 8.7 g/t gold over 5.0 metres at 810 metres depth; hole UGEG-075-022 returning 6.2 g/t gold over 7.4 metres at 806 metres depth; and hole UGEG-054-002 returning 4.0 g/t gold over 9.6 metres at 755 metres depth and 4.5 g/t gold over 7.1 metres at 792 metres depth.
Continued conversion drilling success in this area would confirm the potential to add mineral reserves that could provide additional production for the operation that would require modest additional lateral development considering the area’s proximity to the existing ramp infrastructure.
At Odyssey North, underground conversion drilling highlights included: hole UGOD-075-007 returning 2.5 g/t gold over 16.5 metres at 906 metres depth; hole UGOD-075-008 returning 1.7 g/t gold over 23.3 metres at 906 metres depth; and hole UGOD-075-006 returning 1.6 g/t gold over 16.0 metres at 947 metres depth. These positive results will assist in positioning future infrastructure in an area with potential development related to the Odyssey internal zones.
At Odyssey South, surface drill holes intersected the Odyssey internal zones, with highlights that included: hole MEX24-318 returning 1.7 g/t over 7.8 metres at 457 metres depth and 7.9 g/t gold over 5.9 metres (core length) at 520 metres depth; hole MEX24-315 returning 4.5 g/t gold over 3.4 metres at 586 metres depth; and hole MEX24-317 returning 6.2 g/t gold over 2.1 metres at 843 metres depth. The results further demonstrate the potential to add new mineral reserves and mineral resources in the Odyssey internal zones that could be brought into production using existing mine infrastructure.
Selected recent drill intercepts from the East Gouldie deposit, Odyssey internal zones and the Odyssey North zone at the Odyssey mine are set out in the table and composite longitudinal section below.
Drill hole Deposit / zone From To Depth of Estimated Gold grade Gold grade
(metres) (metres) midpoint true width (g/t) (g/t)
below (metres) (uncapped) (capped)*
surface
(metres)
MEX24-311W East Gouldie 1,826.0 1,834.5 1,455 8.2 5.3 5.1
MEX24-311WA East Gouldie 1,866.2 1,876.6 1,497 9.7 6.5 4.5
MEX24-316 East Gouldie 1,639.7 1,712.5 1,349 51.5 3.0 3.0
including 1,670.0 1,678.6 1,347 6.1 7.5 7.5
and East Gouldie 1,795.7 1,812.8 1,437 16.6 3.4 3.4
UGEG-054-002 East Gouldie 633.6 643.4 755 9.6 4.0 4.0
and East Gouldie 753.0 760.1 792 7.1 4.5 4.5
UGEG-075-007 East Gouldie 600.4 621.5 814 20.8 3.3 3.3
including 600.4 605.5 810 5.0 8.7 8.7
UGEG-075-022 East Gouldie 575.0 582.7 806 7.4 6.2 6.2
MEX24-315 Odyssey internal 740.7 744.4 586 3.4 8.4 4.5
MEX24-317 Odyssey unknown** 954.5 957.5 843 2.1 6.2 6.2
MEX24-318 Odyssey internal 672.3 680.5 457 7.8 1.7 1.7
and Odyssey internal 771.1 777.0 520 5.9*** 14.9 7.9
UGOD-075-006 Odyssey North 500.0 517.4 947 16.0 1.6 1.6
UGOD-075-007 Odyssey North 515.0 534.7 906 16.5 2.5 2.5
UGOD-075-008 Odyssey North 476.5 502.3 906 23.3 1.7 1.7
* Results from East Gouldie, Odyssey internal zones and Odyssey North use a capping factor of 20 g/t gold. ** Undetermined zone within the Odyssey deposit. *** Core length. True width undetermined.
[OdysseyMine – Composite Longitudinal Section]
In regional exploration, work has accelerated in the eastern portion of the Canadian Malartic property package with widely-spaced diamond drilling totalling 15,100 metres during the third quarter (41,700 metres during the first nine months of 2024) on the Rand Malartic and Malartic Goldfields properties to investigate favourable mineralized horizons.
Detour Lake
In the third quarter of 2024, the Company advanced the preparation work for the excavation of the exploration ramp portal, which is expected to commence in the first quarter of 2025. In the quarter, the access road was completed, the pad that will host the surface infrastructure for the underground project was built and the overburden for the portal was removed. Permitting activities for the advanced exploration phase progressed, with the permit to take water for this initial phase expected to be received in the fourth quarter of 2024.
Exploration drilling at Detour Lake during the third quarter of 2024 totalled 61,900 metres (191,900 metres during the first nine months of 2024), including infill drilling into the high-grade corridor at underground depths in the West Pit zone and infill drilling into the West Extension zone at underground depths immediately west of the West Pit mineral resources and next to the planned exploration ramp for the underground project. These results are expected to strengthen the mineralization model supporting the underground mine project west of and under the open pit at Detour Lake.
The drilling into the high-grade corridor in the West Pit zone further defined the high-grade domains that could potentially be mined earlier in the underground project within the larger lower grade envelope and continued to validate the current geological interpretation of the high-grade corridor, with recent highlights that included: hole DLM24-882CW returning 15.0 g/t gold over 18.9 metres at 573 metres depth; hole DLM24-958C returning 5.8 g/t gold over 7.0 metres at 231 metres depth, 2.6 g/t gold over 35.2 metres at 399 metres depth and 22.5 g/t gold over 12.9 metres at 490 metres depth; hole DLM24-882C returning 3.3 g/t gold over 42.2 metres at 481 metres depth and 9.8 g/t gold over 19.7 metres at 575 metres depth; and hole DLM24-931A returning 6.0 g/t gold over 34.5 metres at 432 metres depth and 2.3 g/t gold over 11.7 metres at 463 metres depth.
Towards the west in the West Pit zone near the planned exploration ramp, highlights included: hole DLM24-978 returning 2.5 g/t gold over 24.6 metres at 169 metres depth; and hole DLM24-829 returning 3.1 g/t gold over 20.3 metres at 277 metres depth.
Drilling into the West Extension zone to the west of current mineral resources further confirmed the grades and continuity of mineralization in the western plunge of the deposit, with highlights that included: hole DLM24-895AW returning 28.8 g/t gold over 3.6 metres at 570 metres depth; and hole DLM24-820 returning 11.7 g/t gold over 3.3 metres at 731 metres depth.
Selected recent drill intercepts from the West Pit Underground and West Extension zones at Detour Lake are set out in the table and composite longitudinal section below.
Drill hole Zone From To Depth of Estimated Gold grade
(metres) (metres) midpoint true width (g/t)
below (metres) (uncapped)*
surface
(metres)
DLM24-820 West Extension 791.9 796.0 731 3.3 11.7
DLM24-829 West Pit Underground 313.2 336.8 277 20.3 3.1
DLM24-859 West Pit Underground 591.0 703.0 534 101.3 0.9
DLM24-882C West Pit Underground 552.0 598.8 481 42.2 3.3
and West Pit Underground 688.6 710.1 575 19.7 9.8
DLM24-882CW West Pit Underground 690.0 710.4 573 18.9 15.0
DLM24-895AW West Extension 676.0 680.0 570 3.6 28.8
and West Extension 732.0 815.0 641 76.1 0.7
DLM24-921AW West Extension 956.0 959.0 886 2.3 13.1
and West Extension 1,018.6 1,022.0 942 2.6 31.4
DLM24-931A West Pit Underground 506.0 544.3 432 34.5 6.0
and West Pit Underground 560.0 573.0 463 11.7 2.3
DLM24-940 West Pit Underground 673.0 746.0 552 68.2 1.0
and West Pit Underground 771.0 774.0 597 2.8 13.3
and West Pit Underground 880.7 885.5 674 4.5 12.9
DLM24-952 West Pit Underground 544.0 701.0 499 143.7 0.8
and West Pit Underground 945.0 956.4 738 10.7 6.5
DLM24-956 West Pit Underground 332.0 352.8 280 18.8 3.3
and West Pit Underground 388.0 446.0 336 53.3 1.1
and West Pit Underground 477.0 533.0 401 52.0 1.9
DLM24-958C West Pit Underground 268.0 276.0 231 7.0 5.8
and West Pit Underground 470.0 508.0 399 35.2 2.6
and West Pit Underground 611.2 624.9 490 12.9 22.5
DLM24-959A West Pit Underground 331.0 335.5 269 4.1 67.8
and West Pit Underground 407.4 412.0 327 4.2 18.8
DLM24-963 West Pit Underground 680.7 721.0 572 36.8 1.8
including 683.0 690.0 561 6.4 6.6
DLM24-967 West Pit Underground 650.3 666.0 513 14.7 22.3
and West Pit Underground 778.5 789.2 601 10.1 2.4
DLM24-978 West Pit Underground 193.0 221.0 169 24.6 2.5
DLM24-990 West Extension 346.0 355.1 300 7.7 2.9
DLM24-1000 West Pit Underground 351.8 368.0 308 13.7 2.1
*Results from Detour Lake are uncapped.
[Detour Lake – Composite Longitudinal Section]
Hope Bay – Infill and Step-Out Drilling Continue to Confirm and Extend Madrid’s High-Grade Patch 7 Zone at Depth and Laterally
Exploration drilling at the Hope Bay project during the third quarter totalled 33,100 metres (99,200 metres during the first nine months of 2024) and focused on continued infill and expansion drilling of the Patch 7 zone at the Madrid deposit.
Drilling into the main structure at Patch 7 continued to return wide mineralized intervals with the widest thicknesses and highest gold grades encountered to date at Madrid as well as strong continuity of mineralization between drill holes.
Infill drilling into the main structure at Patch 7 was highlighted by: hole HBM24-248 returning 18.3 g/t gold over 16.4 metres at 479 metres depth; hole HBM24-246 returning 16.8 g/t gold over 27.3 metres at 436 metres depth and 80 metres from hole HBM24-248; and hole HBM24-212 returning 11.9 g/t gold over 30.4 metres at 394 metres depth and 50 metres up-plunge from hole HBM24-246.
Expansion drilling into the upper and lower extensions of the main structure was highlighted by: hole HBM24-232 returning 8.9 g/t gold over 18.4 metres at 289 metres depth, and hole HBM24-211 returning 5.4 g/t gold over 11.2 metres at 577 metres depth, with these two intercepts located 330 metres apart along the moderately north plunging direction of the structure.
Exploration drilling into adjacent, sub-parallel structures was highlighted by: hole HBM24-241 returning 9.0 g/t gold over 10.9 metres at 362 metres depth, and hole HBM24-249 returning 15.0 g/t gold over 3.7 metres at 332 metres depth and 8.4 g/t gold over 26.1 metres at 361 metres depth.
Selected recent drill intercepts from the Patch 7 zone at the Madrid deposit are set out in the table and composite longitudinal section below.
Drill hole From To Depth of Estimated Gold grade Gold grade
(metres) (metres) midpoint below true width (g/t) (g/t)
surface (metres) (uncapped) (capped)*
(metres)
HBM23-105** 815.0 839.5 677 14.0 14.5 10.0
including 830.5 838.0 682 4.3 42.3 27.6
HBM24-183*** 684.4 693.5 577 5.0 19.0 14.1
including 684.4 688.6 575 2.3 35.8 25.1
HBM24-211 704.0 717.0 577 11.2 5.4 5.4
HBM24-212 523.0 561.0 394 30.4 13.0 11.9
including 537.0 554.0 396 13.6 23.9 21.4
HBM24-213 474.0 494.2 415 11.0 9.1 7.6
including 487.5 494.2 421 3.7 20.3 15.6
HBM24-217 574.5 586.0 466 9.1 15.1 15.1
including 578.6 582.7 466 3.2 36.3 36.3
and 593.0 604.0 479 9.4 6.5 6.5
including 594.0 596.0 476 1.6 18.5 18.5
HBM24-219A 583.8 593.0 480 7.4 12.1 12.1
including 590.2 593.0 482 2.3 31.4 31.4
HBM24-232 377.0 401.0 289 18.4 8.9 8.9
including 390.0 397.0 293 5.4 19.4 19.4
HBM24-237 337.9 340.9 289 2.6 65.0 23.6
and 354.6 357.6 303 2.6 11.7 11.7
and 365.0 373.0 314 5.7 7.9 7.9
HBM24-241 498.0 510.0 362 10.9 11.0 9.0
including 499.0 500.0 359 0.9 73.6 50.0
HBM24-246 572.0 601.0 436 27.3 18.5 16.8
including 589.0 593.4 439 4.1 57.5 46.0
HBM24-247 641.2 662.0 505 18.0 5.5 5.5
HBM24-248 624.0 641.5 479 16.4 19.0 18.3
including 628.8 634.0 479 4.9 47.2 45.1
HBM24-249 457.3 461.2 332 3.7 15.0 15.0
and 490.0 517.0 361 26.1 8.4 8.4
* Results from the Madrid deposit at Hope Bay use a capping factor of 75 g/t gold. ** Previously released on July 26, 2023. *** Previously released on July 31, 2024.
[Madrid Depositat Hope Bay -Composite Longitudinal Section]
The above results are expected to increase mineral resources and upgrade the mineral resource classification at year-end 2024.
Expansion and infill drilling will continue at Madrid through the fourth quarter 2024 (15,000 metres) and into 2025 with several drill rigs being relocated to the north to investigate the priority targets between the Patch 7 and Suluk zones as a follow-up on previously released hole HBM23-105 that returned 10.0 g/t gold over 14.0 metres at 677 metres depth and hole HBM24-183 that returned 14.1 g/t gold over 5.0 metres at 577 metres depth.
The planned work will be supported by a newly constructed, 2.3-kilometre-long surface exploration track that connects the nearby Madrid-Naartok infrastructure to the Patch 7 area. This surface track provides year-round access the Patch 7 area, allowing drilling to continue during the fourth quarter to accelerate mineral resource expansion andinfilling. This track could also be used for potential future development of the Patch 7 area.
[Madrid Deposit at Hope Bay- Plan Map]
San Nicolás Copper Project
The San Nicolás copper-zinc project is located in Zacatecas State in central Mexico. The Company acquired a 50% interest in the project in April 2023 from Teck Resources Limited and the two companies have formed a long-term 50/50 joint venture partnership to advance permitting and development of San Nicolas, which ranks as the largest undeveloped VMS deposit in Mexico and one of the largest undeveloped VMS deposits in the world.
In the third quarter of 2024, Minas de San Nicolás continued engagement with government and stakeholders in support of the permit review. The Minas de San Nicolás team submitted a Supplementary Information Package in response to the regulator’s inquiries on their MIA-R permit application on July 5, 2024 and submitted additional information for the change of land use permit application in September 2024. Progress continues on the feasibility study work and execution strategy development, with plans to begin detailed engineering in the first half of 2025. Project approval is expected to follow, subject to receipt of permits and the results of the feasibility study.
ABITIBI REGION, QUEBEC
LaRonde – Restart of LaRonde Zone 5 Mill Operation; Gold Production Affected by Planned Mine and Mill Shutdowns
LaRonde - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 687 627 2,047 1,995
Tonnes of ore milled per day 7,467 6,815 7,471 7,308
Gold grade (g/t) 3.20 3.43 3.55 3.66
Gold production (ounces) 65,605 64,496 216,303 220,883
Production costs per tonne (C$) $ 185 $ 182 $ 167 $ 157
Minesite costs per tonne (C$)12 $ 158 $ 147 $ 158 $ 151
Production costs per ounce $ 1,420 $ 1,321 $ 1,163 $ 1,054
Total cash costs per ounce $ 1,135 $ 972 $ 991 $ 937
Gold Production
— Third Quarter of 2024 – Gold production at LaRonde increased when compared to the prior-year period primarily due to higher volumes of ore mined and milled at the LaRonde Zone 5 (“LZ5”) mine, partially offset by lower gold grades as expected under the planned mining sequence
— First Nine Months of 2024 – Gold production at LaRonde decreased when compared to the prior-year period due to lower gold grades and lower recovery, partially offset by higher volume of ore milled
Production Costs
— Third Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period due to the consumption of stockpiles including re-handling costs and higher underground maintenance and service 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 for the same reasons as production costs per tonne and lower gold grades
— First Nine Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher mill maintenance, underground maintenance and service 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 primarily due to lower gold grades and higher production costs per tonne
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above regarding the increase in production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period for the same reasons outlined above for the increase in production costs per ounce
— First Nine Months of 2024 – 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 per tonne. Total cash costs per ounce increased when compared to the prior-year period primarily for the same reasons as the increase in production costs per ounce
Highlights
— Planned shutdowns were completed in July for 17 days at the LaRonde mine for maintenance on the ore handling system and 11 days at the LaRonde mill. Both shutdowns were slightly longer than planned, which resulted in gold production lower than forecast in the quarter
— Rehabilitation in the West mine area following a seismic event that occurred at the LaRonde mine on June 24, 2024 was completed in the third quarter of 2024. The lower production from the West mine as a result of the ongoing rehabilitation work was offset by higher production from the 11-3 Zone and LZ5, although at lower gold grades
— The Company continued its automation initiatives at the LZ5 mine and has exceeded its automation target by 18% year-to-date. Approximately 1,740 tonnes per day (“tpd”) were moved in the first nine months of the year through automated scoops and trucks, which contributed to the strong overall site performance at an average 3,450 tpd
— The LZ5 processing facility was restarted in August 2024, providing milling flexibility at LaRonde, after being in care and maintenance since the third quarter of 2023. With all planned shutdowns completed in the third quarter of 2024 and the LZ5 mill restarted, LaRonde is well positioned for the fourth quarter of 2024
— At the LaRonde mill, the focus remained on improving mill recoveries by optimizing the blending of ore from the LaRonde mine, 11-3 Zone, LZ5, Goldex and Akasaba West
__________ 12 Minesite costs per tonne is a non-GAAP measure that is not standardized under IFRS and is reported on a per tonne of ore milled basis.For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to production costs see "Note Regarding Certain Measures of Performance" below.
Canadian Malartic – Solid Operating Performance; Underground Development At Odyssey Ahead of Plan
Canadian Malartic - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023*
Tonnes of ore milled (thousands of tonnes) 4,862 4,911 15,217 14,317
Tonnes of ore milled per day 52,848 53,380 55,536 52,443
Gold grade (g/t) 0.98 1.22 1.12 1.22
Gold production (ounces) 141,392 177,243 509,169 435,683
Production costs per tonne (C$) $ 36 $ 34 $ 36 $ 36
Minesite costs per tonne (C$) $ 41 $ 39 $ 41 $ 39
Production costs per ounce $ 912 $ 708 $ 785 $ 750
Total cash costs per ounce $ 1,025 $ 805 $ 906 $ 789
* Gold production reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% interest thereafter. Tonnage of ore milled is reported on a 100% basis for both periods.
Gold Production
— Third Quarter of 2024 – Gold production decreased when compared to the prior-year period due to lower grades as expected from the mining sequence combined with lower recovery and throughput
— First Nine Months of 2024 – Gold production increased when compared to the prior-year period due to the increase in the Company’s ownership percentage between periods from 50% to 100% as a result of the closing of the Yamana Transaction and higher throughput, partially offset by lower gold grades resulting from increased ore sourced from the low-grade stockpile
Production Costs
— Third Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to a lower volume of ore milled and higher underground production costs with the ramp-up of operations at the Odyssey mine and higher royalty costs. Production costs per ounce increased when compared to the prior-year period due to the same reasons for the increased production costs per tonne and fewer ounces of gold produced in the current period
— First Nine Months of 2024 – Production costs per tonne remained the same as the prior-year period as the higher royalty costs and higher underground production costs with the ramp-up of operations at the Odyssey mine were offset by higher volume of ore milled. Production costs per ounce increased when compared to the prior-year period primarily due lower gold grades in the current period
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the milling of low-grade stockpiles including re-handling costs, higher royalty costs during the quarter and the lower volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period primarily due to the same factors that resulted in higher minesite costs per tonne and lower gold grades in the current period
— First Nine Months of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the consumption of low-grade stockpiles including re-handling costs and higher royalty costs, partially offset by higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period primarily due to the same factors that resulted in higher minesite costs per tonne and lower gold grades in the current period
Highlights
— Gold production in the third quarter of 2024 was in line with the production estimates but lower than the second quarter of 2024 due to lower gold grade sequencing and lower throughput from a planned extended mill shutdown in September, which included advanced maintenance work on the tailings thickener drive assembly
— At Odyssey South, total development during the quarter was ahead of plan at approximately 3,430 metres. The better-than-planned performance is largely due the increased use of tele-operated and automated equipment, including scoops, trucks, jumbos and cable bolters. Gold production was slightly under target at approximately 16,000 ounces of gold as a result of a delay in the mining sequence of higher-grade stopes
— At the Canadian Malartic pit, the construction of the central berm was completed in July and in-pit tailings disposal began
— An update on the Odyssey mine development, construction and exploration highlights is set out in the Update on Key Value Drivers and Pipeline Projects section above
Goldex – Achieved Target Milling Rate at Akasaba West
Goldex - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 739 756 2,264 2,215
Tonnes of ore milled per day 8,033 8,217 8,263 8,114
Gold grade (g/t) 1.51 1.69 1.59 1.72
Gold production (ounces) 30,334 35,880 98,472 107,619
Production costs per tonne (C$) $ 63 $ 51 $ 60 $ 52
Minesite costs per tonne (C$) $ 61 $ 52 $ 60 $ 52
Production costs per ounce $ 1,130 $ 803 $ 1,021 $ 788
Total cash costs per ounce $ 1,031 $ 822 $ 945 $ 802
Gold Production
— Third Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades from increased ore sourced from Akasaba West and lower tonnes milled as a result of planned mill shutdowns at Goldex and LaRonde
— First Nine Months of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades from increased ore sourced from Akasaba West and lower recovery, partially offset by a higher volume of ore processed
Production Costs
— Third Quarter and First Nine Months of 2024 – Production costs per tonne increased when compared to the prior-year periods primarily due to a lower stripping adjustment associated with Akasaba West, the timing of inventory sales and higher milling costs, partially offset by a build-up in stockpiles and lower volume of ore milled. Production costs per ounce increased when compared to the prior-year periods due to the same factors that resulted in higher production costs per tonne and lower gold grades
Minesite and Total Cash Costs
— Third Quarter and First Nine Months of 2024 – Minesite costs per tonne increased when compared to the prior-year periods 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 periods due to the same reasons outlined above for the higher production costs per ounce
Highlights
— At Akasaba West, through the ramp-up process, the target milling rate was exceeded in September 2024, which is expected to provide increased production flexibility to Goldex going forward
— Production from the Deep 2 zone continued to ramp-up with the second stope mined during the quarter
ABITIBI REGION, ONTARIO
Detour Lake – Record Quarterly Tonnage Milled; Targeted Mill Throughput Rate Achieved
Detour Lake - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 7,082 5,630 20,376 18,827
Tonnes of ore milled per day 76,978 61,196 74,365 68,963
Gold grade (g/t) 0.85 0.93 0.84 0.88
Gold production (ounces) 173,891 152,762 492,889 483,971
Production costs per tonne (C$) $ 24 $ 25 $ 25 $ 24
Minesite costs per tonne (C$) $ 26 $ 25 $ 26 $ 26
Production costs per ounce $ 731 $ 696 $ 770 $ 688
Total cash costs per ounce $ 779 $ 755 $ 812 $ 752
Gold Production
— Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput from a higher mill run-time than planned and optimized mill equipment, partially offset by lower gold grades from the mining sequence and lower recovery
— First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput from a higher mill run-time than planned and optimized mill equipment, partially offset by lower gold grades and lower recovery, mainly due to abnormal chipping of grinding media affecting grinding efficiency
Production Costs
— Third Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period mainly due to the higher volume of ore milled in the current period, partially offset by higher mining and milling costs as a result or higher throughput, higher royalty costs and the timing of inventory sales. Production costs per ounce increased when compared to the prior-year period due to the higher mining and milling costs as a result of higher throughput, higher royalty costs, the timing of inventory sales and lower gold grades
— First Nine Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher milling costs as a result of lower grinding media efficiency in the SAG mill and higher mining and royalty 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 factors resulting in higher production costs per tonne and lower gold grades
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to higher mining, milling and royalty costs, partially offset by the higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per ounce
— First Nine Months of 2024 – Minesite costs per tonne remained unchanged when compared to the prior-year period as the higher mining, milling and royalty costs were offset by the higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period primarily due to a stable minesite costs per tonne combined with lower gold grades.
Highlights
— In the third quarter of 2024, the mill set a record quarterly throughput rate of 76,978tpd ahead of the targeted rate of 76,700 tpd. This performance was largely due to a stable mill run-time at approximately 93.0%, the replacement of the defective grinding media in the SAG mill and the installation of a new ball mill discharge grizzly on line 2 during the planned mill shutdown completed in August. Other initiatives that are expected to continue improving mill throughput include the installation of a new ball mill discharge grizzly on line 1, a SAG discharge box upgrade (following the design at the Canadian Malartic mill) and installation of variable speed drive to the secondary crushers
— Assembly and the commissioning of the new Komatsu rope shovel were completed in the third quarter of 2024. The new rope shovel is expected to add increased capacity required per the life of mine plan, replacing a diesel shovel of lower capacity. The addition of the new shovel, combined with higher truck availability and utilization, resulted in the highest daily tonnes mined from the open pit to-date in 2024
— Metallurgical recovery improved in the third quarter of 2024 when compared to the second quarter of 2024 as a result of the successful replacement of the defective grinding media in the SAG mill. Recovery was slightly lower than expected in the quarter due to abnormal carbon breakage in the CIP circuit. To address this issue the Company replaced trash screens in the CIP circuit during the planned shutdown in August and cleaned the leach tanks
— The expansion of the mine maintenance shop to support increased mining rates and a larger production fleet is ongoing. The new mining service facility is expected to be completed in 2025
— An update on the underground project and exploration results is set out in the Update on Key Value Drivers and Pipeline Projects section above
Macassa – Strong Quarterly Gold Production; Transitioning Focus to Mill Optimization
Macassa - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 134 112 420 311
Tonnes of ore milled per day 1,457 1,217 1,533 1,139
Gold grade (g/t) 16.84 13.35 15.43 17.16
Gold production (ounces) 70,727 46,792 203,048 167,951
Production costs per tonne (C$) $ 489 $ 435 $ 476 $ 488
Minesite costs per tonne (C$) $ 539 $ 476 $ 502 $ 516
Production costs per ounce $ 680 $ 766 $ 723 $ 669
Total cash costs per ounce $ 750 $ 841 $ 763 $ 719
Gold Production
— Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected from the mine sequence and higher throughput, resulting from increased productivity from a larger workforce, new ventilation infrastructure and improved equipment availability as well as the addition of ore sourced from the Near Surface deposit
— First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput, resulting from increased productivity from new ventilation infrastructure and improved equipment availability as well as the addition of ore sourced from the Near Surface deposit, partially offset by lower gold grades
Production Costs
— Third Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period due to higher mining costs resulting from an increase in mining rate, partially offset by the higher volume of ore milled in the current period. Production costs per ounce decreased when compared to the prior-year period due to increased gold production in the current period, partially offset by higher mining costs resulting from an increase in mining rate
— First Nine Months of 2024 – 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 higher mining costs. Production costs per ounce increased when compared to the prior-year period due to higher underground development and mining costs, partially offset by more ounces of gold produced in the current period
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons as for the higher production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year period due to the same reasons as for the lower production costs per ounce
— First Nine Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year period due to the same reasons as for the lower production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons as for the higher production costs per ounce
Highlights
— In the third quarter of 2024, quarterly gold production at Macassa was the highest achieved since the merger between the Company and Kirkland Lake Gold Ltd. in February 2022. This performance reflects the productivity gains achieved at the mine and mill since the completion of #4 Shaft and the new ventilation infrastructure in 2023. The operational constraint has now shifted from the mine to the mill – with a continued focus on asset optimization, the Company is working on improving the ore grind size and load in the grinding circuit to further improve mill throughput
— The higher gold production than forecast was also driven by higher gold grades in the quarter primarily due to better than expected ore extraction in priority production headings
— Construction of the new paste plant was 70% complete as at September 30, 2024 and is on schedule for commissioning in the first half of 2025
— Exploration drilling at Macassa during the third quarter totalled 45,500 metres (137,900 metres during the first nine months of 2024) with highlights at depth in the Macassa mine of: 31.8 g/t gold over 2.2 metres at 1,710 metres depth and 12.5 g/t gold over 2.0 metres at 1,713 metres depth in hole 57-1556 in the SMC West zone; 18.0 g/t gold over 1.9 metres at 1,855 metres depth in hole 58-1142 in the central area of the Main Break; and 19.5 g/t gold over 3.2 metres at 1,986 metres depth in hole 58-1290 in the eastern extension of the Main Break. The results show the potential for localized extensions of mineral resources. Step-out drilling into the shallow eastern extension of the AK deposit returned highlights of 7.7 g/t gold over 5.7 metres at 245 metres depth in hole KLAK-321 and 11.8 g/t gold over 1.9 metres at 251 metres depth in hole KLAK-339, confirming the potential for mineral resource addition down-plunge of current mineral resources
NUNAVUT
Meliadine – Completion of Mill Expansion Drives Record Quarterly Throughput
Meliadine - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 533 470 1,450 1,407
Tonnes of ore milled per day 5,793 5,109 5,292 5,154
Gold grade (g/t) 6.08 6.17 6.34 6.15
Gold production (ounces) 99,838 89,707 284,238 267,856
Production costs per tonne (C$) $ 192 $ 254 $ 238 $ 237
Minesite costs per tonne (C$) $ 226 $ 248 $ 241 $ 249
Production costs per ounce $ 752 $ 994 $ 895 $ 930
Total cash costs per ounce $ 889 $ 971 $ 908 $ 975
Gold Production
— Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as a result of the commissioning of the Phase 2 mill expansion, partially offset by lower gold grades as expected under the mining sequence
— First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected under the mining sequence and higher throughput
Production Costs
— Third Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period primarily due to a higher volume of ore milled in the current period and stockpile build-up in the current period compared to consumption of stockpiles in the prior-year period, partially offset by higher underground services and royalty costs. Production costs per ounce decreased when compared to the prior-year period due to the same reasons outlined above for production costs per tonne and more gold ounces produced in the current period
— First Nine Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due higher underground services and royalty costs, partially offset by the build-up of stockpiles in the current period and the higher volume of ore milled in the current period. Production costs per ounce decreased in the current period due to more ounces of gold being produced in the current period, partially offset by the timing of inventory sales and higher underground services and royalty costs
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne decreased when compared to the prior-year period for the same reasons outlined above for production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year period for the same reasons outlined above for the production costs per ounce
— First Nine Months of 2024 – 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 decreased when compared to the prior-year period for the same reasons outlined above for the production costs per ounce
Highlights
— Gold production in the third quarter of 2024 was higher than planned as a result of record quarterly throughput driven by the completion of the Phase 2 mill expansion commissioning ahead of schedule. Throughput at the mill is expected to continue to ramp up to an average 6,000 tpd by year-end 2024
— Record health and safety performance was achieved at the site since the start of its operations, with a combined injury frequency of zero for six consecutive months
— During the first quarter of 2024, the Company submitted a proposal to the Nunavut Water Board to amend the current Type A Water license to include tailings, water and waste management infrastructure at the Pump, F-zone, Wesmeg and Discovery deposits. Public hearings were completed in September with the final recommendation expected in the fourth quarter of 2024. The Company expects permits to be received in the first quarter of 2025
Meliadine – Exploration Highlights
Exploration drilling at the Meliadine mine totalled 25,300 metres during the third quarter (79,600 metres during the first nine months of 2024) with three underground drill rigs and up to three surface drill rigs in operation. Building on the positive results of the first quarter, the exploration drilling program for 2024 was increased from 77,700 metres to a planned 103,700 metres. Work accelerated during the second and third quarters and primarily comprised of deep exploration and conversion drilling at the Tiriganiaq and Pump deposits, and infill drilling of inferred mineral resources at the Wesmeg North deposit.
The exploration drift at Tiriganiaq was extended by 289 metres to the west during the first nine months of 2024, providing additional drilling platforms to explore the lateral and depth extensions of the deposit.
Selected recent drill intercepts at the Tiriganiaq, Wesmeg North, Wesmeg and Pump deposits at the Meliadine mine are set out in the table and composite longitudinal section below.
Drill hole Deposit Lode / From To Depth of Estimated Gold grade Gold grade
zone (metres) (metres) midpoint true width (g/t) (g/t)
below (metres) (uncapped) (capped)*
surface
(metres)
ML425-9204-D6 Tiriganiaq 1000 286.0 291.2 718 5.0 12.8 12.8
ML425-9323-D2 Tiriganiaq 1000 351.3 355.7 822 3.5 5.7 5.7
ML425-9323-D15 Tiriganiaq 1000 281.7 294.4 703 11.8 15.1 15.1
ML425-9323-D29B Tiriganiaq 1000 285.4 291.5 698 5.9 11.4 11.4
ML425-9950-D26 Tiriganiaq 1000 466.3 472.5 852 5.2 30.5 30.5
M24-3936 Wesmeg North 922 160.0 164.2 162 3.8 24.0 20.4
M24-3938 Wesmeg North 940 197.8 202.6 174 4.7 17.3 8.3
M24-3947 Wesmeg North 946 136.2 147.0 155 9.1 7.4 7.4
M24-3948 Wesmeg North 922 186.4 191.6 196 4.5 45.0 23.7
M24-3992 Wesmeg North 911 163.0 166.0 108 2.9 24.3 20.2
ML375-9664-D20 Wesmeg North 966 12.9 19.6 356 5.0 15.6 9.3
and Wesmeg North 945 132.2 140.7 465 6.8 8.7 8.7
ML400-8931-U10A Wesmeg North 930 101.0 104.0 364 2.6 24.9 24.9
ML400-9970-D3 Wesmeg North 962 177.4 186.1 483 7.6 24.3 5.0
ML400-9970-D12 Wesmeg North 953 79.3 89.6 442 9.5 20.7 8.0
ML400-9970-D19 Wesmeg North 953 79.2 86.4 446 6.5 29.0 14.1
ML400-9970-D23 Wesmeg North 953 118.0 125.0 497 4.7 10.7 8.3
ML400-9970-D24 Wesmeg North 953 79.7 88.6 451 8.3 9.9 9.0
ML400-9970-D25 Wesmeg North 980 1.0 8.0 389 3.8 16.2 9.8
and Wesmeg North 945 276.6 280.0 652 2.3 7.1 7.1
ML400-9970-D28 Wesmeg North 953 83.9 103.1 459 16.0 4.7 4.7
ML475-9228-D1 Wesmeg 510 315.0 318.8 737 2.8 8.0 8.0
ML475-9228-D13 Wesmeg 650 221.7 225.6 679 2.4 13.5 13.5
M24-3849 Pump 3230 392.6 396.0 343 3.1 6.9 6.9
and Pump 3430 359.0 364.9 317 5.4 4.6 4.6
M24-3876 Pump 3430 366.5 371.5 318 4.6 8.6 8.6
M24-3879A Pump 3525 422.5 427.8 369 5.1 7.7 7.7
and Pump 3425 494.0 499.0 426 4.8 6.9 6.9
M24-3901A Pump 3425 282.1 292.3 243 9.9 7.5 7.5
*Results from Meliadine use a capping factor ranging from 20 g/t to 90 g/t gold depending on the zone.
[Meliadine Mine – Plan Map and Composite Longitudinal Section]
At Tiriganiaq, exploration drilling into the western and eastern extensions of the lower central portion of the deposit produced highlights that included hole ML425-9950-D26 returning 30.5 g/t gold over 5.2 metres at 852 metres depth and 100 metres beyond current mineral resources; and hole ML425-9204-D6 returning 12.8 g/t gold over 5.0 metres at 718 metres depth and 40 metres beyond current mineral resources. Infill drilling at similar depths in the lower central portion was highlighted by hole ML425-9323-D15 returning 15.1 g/t gold over 11.8 metres at 703 metres depth; and hole ML425-9323-D29B returning 11.4 g/t gold over 5.9 metres at 698 metres depth.
These high-grade shoots in the 1000 lode system remain open laterally and down-plunge, demonstrating the potential for further expansion of mineral resources laterally and at depth.
During the fourth quarter of 2024, the Company plans to develop another 120 metres of the remaining 433 metres of exploration drift development at Tiriganiaq.
At Wesmeg North, infill drilling at depth into the high grade shoot in the central corridor was highlighted by hole ML400-9970-D19 returning 14.1 g/t gold over 6.5 metres at 446 metres depth; hole ML400-9970-D25 returning 9.8 g/t gold over 3.8 metres at 389 metres depth; hole ML400-9970-D12 returning 8.0 g/t gold over 9.5 metres at 442 metres depth; and hole ML400-9970-D24 returning 9.0 g/t gold over 8.3 metres at 451 metres depth.
At shallower depths within same high-grade corridor, highlights included: hole M24-3992 returning 20.2 g/t gold over 2.9 metres at 108 metres depth; hole M24-3936 returning 20.4 g/t gold over 3.8 metres at 162 metres depth; hole M24-3938 returning 8.3 g/t gold over 4.7 metres at 174 metres depth; hole M24-3947 returning 7.4 g/t gold over 9.1 metres at 155 metres depth; and hole M24-3948 returning 23.7 g/t gold over 4.5 metres at 196 metres depth.
These infill drilling results at Wesmeg North are of higher grade than historical drilling in these areas and are expected to have a positive impact on the mineral resource estimate at year-end 2024.
Exploration ramp development is expected to begin at the Wesmeg North and Wesmeg deposits towards the end of the fourth quarter of 2024. New drilling platforms are expected to be available in the second quarter of 2025 to explore Wesmeg North and Wesmeg to the east and at depth, where there is excellent potential for future mineral resources addition.
At the Pump deposit, located approximately one kilometre to the south of Wesmeg, highlights from 2024 include conversion hole M24-3901A returning 7.5 g/t gold over 9.9 metres at 243 metres depth, including 15.9 g/t gold over 2.7 metres at 240 metres depth; and exploration hole M24-3879A returning 7.7 g/t gold over 5.1 metres at 369 metres depth and 6.9 g/t gold over 4.8 metres at 426 metres depth. The results confirm and extend the Pump deposit at relatively shallow depths.
Meadowbank – Five Million Ounce Milestone Achieved; Strong Quarterly Gold Production Driven by Record Throughput
Meadowbank - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 1,083 1,077 3,144 2,905
Tonnes of ore milled per day 11,772 11,707 11,474 10,641
Gold grade (g/t) 4.19 3.76 4.21 3.82
Gold production (ounces) 133,502 116,555 387,695 322,440
Production costs per tonne (C$) $ 145 $ 167 $ 152 $ 176
Minesite costs per tonne (C$) $ 153 $ 178 $ 155 $ 177
Production costs per ounce $ 867 $ 1,149 $ 910 $ 1,183
Total cash costs per ounce $ 910 $ 1,225 $ 923 $ 1,173
Gold Production
— Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected under the mine sequence and higher recovery and throughput
— First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected under the mine sequence and higher throughput, as the comparative period was affected by unplanned downtime at the SAG mill and unplanned shutdowns due to caribou migration patterns
Production Costs
— Third Quarter and First Nine Months of 2024 – Production costs per tonne decreased when compared to the prior-year periods due to a higher volume of ore milled. Production costs per ounce decreased when compared to the prior-year periods due to more ounces of gold being produced in the current period
Minesite and Total Cash Costs
— Third Quarter and First Nine Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year periods due to the same reasons as for the lower production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year periods due to the same reasons outlined above for the lower production costs per ounce
Highlights
— In September 2024, Meadowbank achieved the significant milestone of five million ounces of gold poured since the mine began production
— Gold production was higher than forecast in the quarter due to strong overall operational performance, including the mill setting a record quarterly throughput at 11,772 tpd
— Production from both open pit and underground operations was higher than forecast despite challenging weather conditions in September, which affected haulage productivity. The steady mine performance is a result of the productivity gains achieved through the full mining cycle and increased adherence and compliance to plan in 2024. Production also continues to benefit from positive reconciliation on ore tonnage
AUSTRALIA
Fosterville – Record Quarterly Ore Tonnes Mined and Strong Mill Performance
Fosterville - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 246 144 652 468
Tonnes of ore milled per day 2,674 1,565 2,380 1,714
Gold grade (g/t) 8.61 13.22 9.28 15.48
Gold production (ounces) 65,532 59,790 188,064 228,161
Production costs per tonne (A$) $ 271 $ 291 $ 267 $ 322
Minesite costs per tonne (A$) $ 261 $ 304 $ 264 $ 316
Production costs per ounce $ 677 $ 461 $ 611 $ 438
Total cash costs per ounce $ 651 $ 495 $ 602 $ 437
Gold Production
— Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput driven by strong operating performance, partially offset by the lower gold grades as the ultra-high grade Swan zone is depleting in line with schedules
— First Nine Months of 2024 – Gold production decreased when compared to the prior-year period primarily due to the lower gold grades as discussed above, partially offset by higher throughput
Production Costs
— Third Quarter and First Nine Months of 2024 – Production costs per tonne decreased when compared to the prior-year periods due to a higher volume of ore mined and milled, partially offset by higher mining costs associated with the extra volume, higher royalty costs and the build-up of stockpiles. Production costs per ounce increased when compared to the prior-year periods due to lower gold grades in the period
Minesite and Total Cash Costs
— Third Quarter and First Nine Months of 2024 – Minesite costs per tonne decreased when compared to the prior-year periods due to a higher volume of ore mined and milled, partially offset by higher mining costs associated with the extra volume and higher royalty costs. Total cash costs per ounce increased when compared to the prior-year periods due to lower gold grades as expected, partially offset by lower minesite costs per tonne
Highlights
— In the third quarter of 2024, Fosterville set a quarterly record for ore mined for the second consecutive quarter at approximately 246,000 tonnes, driven by higher than planned development in ore at Robbins Hill and Phoenix. Fosterville also set a monthly record in ore tonnes trucked at 90,000 tonnes in September. The Company continues to focus on productivity gains and cost control at the mine and the mill to maximize throughput and reduce unit costs as gold grades continue to decline with the depletion of the Swan zone
— 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 2024, the Company completed the excavation of the ventilation raises and the project is progressing as planned at approximately 75% completion. The Company expects the project to be completed by early 2025
— Exploration drilling at Fosterville totalled 16,700 metres during the third quarter of 2024 (57,100 metres during the first nine months of 2024) with work focused on the extensions of mineral reserves and mineral resources at the Lower Phoenix and Robbins Hill areas. At Robbins Hill, drilling targeted the southern extension of the Curie structure and intersected moderate-grade gold mineralization approximately 600 metres south of current mineral resources and close to existing ramp infrastructure, with highlights including hole UDR062 returning 5.2 g/t gold over 7.7 metres at 705 metres depth and hole UDR063 returning 3.0 g/t gold over 10.7 metres at 613 metres depth. In the Lower Phoenix area, drilling intersected high-grade results in the Cardinal structure approximately 100 metres down-plunge of the current mineral reserves, with highlights including: hole UDH4999A returning 72.8 g/t gold over 5.7 metres with visible gold at 1,785 metres depth, including 1,383.2 g/t over 0.28 metres at 1,787 metres depth; and hole UDH4996 returning 6.8 g/t gold over 3.2 metres at 1,764 metres depth in potentially the upper margin of the plunging Cardinal visible-gold trend
FINLAND
Kittila – Mill Recovery Improved Quarter-over-Quarter; Continuous Improvement Program Yields Initial Positive Results
Kittila - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 544 527 1,550 1,440
Tonnes of ore milled per day 5,913 5,728 5,657 5,275
Gold grade (g/t) 3.94 4.20 4.10 4.45
Gold production (ounces) 56,715 59,408 166,967 173,230
Production costs per tonne (EUR) € 100 € 101 € 105 € 100
Minesite costs per tonne (EUR) € 96 € 99 € 103 € 100
Production costs per ounce $ 1,057 $ 986 $ 1,057 $ 896
Total cash costs per ounce $ 1,010 $ 930 $ 1,033 $ 875
Gold Production
— Third Quarter and First Nine Months of 2024 – Gold production decreased when compared to the prior-year periods primarily due to lower gold grades, partially offset by higher throughput
Production Costs
— Third Quarter of 2024 – Production costs per tonne decreased slightly when compared to the prior-year period primarily due to a higher volume of ore milled in the current period, partially offset by higher underground mining, development and maintenance costs, higher royalty costs and the strengthening of the Euro relative to the US dollar between periods. 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
— First Nine Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to the consumption of stockpiles, timing of inventory sales, higher underground mining and maintenance costs and higher royalty 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 for higher production costs per tonne and fewer ounces of gold being produced in the current period
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne decreased when compared to the prior-year period mainly due to the higher volume of ore milled in the current period. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons as the higher production costs per ounce
— First Nine Months of 2024 – Minesite costs per tonne increased when compared to the prior year period primarily due to the same reasons outlined above for production costs per tonne. Total cash costs per ounce increased when compared to the prior year period due to the same reasons as the higher production costs per ounce
Highlights
— In the third quarter of 2024, Kittila set a record quarterly performance in health and safety
— Gold production was lower than planned in the third quarter of 2024 due to lower grades due to adjustments to the mining sequence and lower recovery from higher carbon and sulphur content in the ore. Various recovery improvement actions were implemented during the quarter, resulting in an improvement in recovery rates compared to the prior quarter. In addition, the Company continues to optimize the ore blend to improve metallurgical recovery
— Continuous improvement efforts, initiated in the second quarter of 2024 and focused on mine productivity, yielded initial positive results, including approximately 20% improvement in advance development rate
— A 10-day planned shutdown for the autoclave and other mill maintenance is planned in the fourth quarter of 2024. The maintenance cycle for the autoclave is eight months, with the previous shutdown completed in February 2024
MEXICO
Pinos Altos – Solid Open Pit and Mill Performance Supports Gold Production
Pinos Altos - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) 446 450 1,326 1,215
Tonnes of ore milled per day 4,848 4,891 4,839 4,451
Gold grade (g/t) 1.58 1.84 1.72 1.92
Gold production (ounces) 21,371 25,386 69,850 71,679
Production costs per tonne $ 104 $ 89 $ 93 $ 89
Minesite costs per tonne $ 96 $ 85 $ 94 $ 88
Production costs per ounce $ 2,174 $ 1,581 $ 1,761 $ 1,504
Total cash costs per ounce $ 1,531 $ 1,310 $ 1,426 $ 1,236
Gold Production
— Third Quarter and First Nine Months of 2024 – Gold production decreased when compared to the prior-year periods primarily due to lower gold grades as expected under the mining sequence
Production Costs
— Third Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to the timing of inventory sales and higher underground development and maintenance costs. Production costs per ounce increased when compared to the prior-year period for the same reasons outlined above for production costs per tonne and fewer ounces of gold produced in the current period
— First Nine Months of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher underground development and services costs, higher milling costs and a lower deferred stripping ratio, 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 for the higher production costs per tonne and fewer ounces of gold produced in the period
Minesite and Total Cash Costs
— Third Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period 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 due to the same reasons outlined above that resulted in higher production costs per ounce
— First Nine Months of 2024 – 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 as the higher production costs per ounce
La India – Residual Leaching to Continue Through Year-End 2024; Site Transitioning to Closure Phase Beginning in the Fourth Quarter of 2024
La India - Operating Statistics Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands of tonnes) - 970 - 2,510
Tonnes of ore milled per day - 10,543 - 9,194
Gold grade (g/t) - 1.10 - 0.86
Gold production (ounces) 4,529 22,269 21,190 56,423
Production costs per tonne $ - $ 29 $ - $ 29
Minesite costs per tonne $ - $ 27 $ - $ 29
Production costs per ounce $ 2,300 $ 1,271 $ 1,861 $ 1,277
Total cash costs per ounce $ 2,872 $ 1,156 $ 1,963 $ 1,272
Gold Production
— Third Quarter and First Nine Months of 2024 – Gold production decreased when compared to the prior-year periods due to ceasing of mining operations at La India in the fourth quarter of 2023. Gold production in the current periods came only from residual leaching
Costs
— Third Quarter and First Nine Months of 2024 – Production costs per ounce increased when compared to the prior-year periods driven primarily by the cessation of mining activities, partially offset by the strengthening of the Mexican Peso relative to the U.S. dollar between periods
— Third Quarter and First Nine Months of 2024 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to fewer ounces of gold produced in the period
About Agnico Eagle
Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, 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.
About this News Release
Unless otherwise stated, references to “LaRonde”, “Canadian Malartic”, “Meadowbank” and “Goldex” are to the Company’s operations at the LaRonde complex, the Canadian Malartic complex, the Meadowbank complex and the Goldex complex, respectively. The LaRonde complex consists of the mill and processing operations at the LaRonde mine and the LaRonde Zone 5 mine. The Canadian Malartic complex consists of the mill and processing operations at the Canadian Malartic mine and the Odyssey mine. The Meadowbank complex consists of the mill and processing operations at the Meadowbank mine and the Amaruq open pit and underground mines. The Goldex complex consists of the mill and processing operations at the Goldex mine and the Akasaba West open pit mine. References to other operations are to the relevant mines, projects or properties, as applicable.
When used in this news release, the terms “including” and “such as” mean including and such as, without limitation.
The information contained on any website linked to or referred to herein (including the Company’s website) is not part of this news release.
Note Regarding Certain Measures of Performance
This news release discloses certain financial performance measures and ratios, including “total cash costs per ounce”, “minesite costs per tonne”, “all-in sustaining costs per ounce” (or “AISC per ounce”), “adjusted net income”, “adjusted net income per share”, “cash provided by operating activities before changes in non-cash working capital balances”, “cash provided by operating activities before changes in non-cash working capital balances per share”, “EBITDA” which means earnings before interest, taxes, depreciation and amortization, “adjusted EBITDA”, “free cash flow”, “free cash flow before changes in non-cash working capital balances”, “operating margin”, “sustaining capital expenditures”, “development capital expenditures” and “net debt”, as well as, for certain of these measures their related per share ratios that are not standardized measures under IFRS. These measures may not be comparable to similar measures reported by other gold producers and should be considered together with other data prepared in accordance with IFRS. See below for a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS.
Total cash costs per ounce and minesite costs per tonne
Total cash costs per ounce is calculated on a per ounce of gold produced basis and is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). Total cash costs per ounce on a by-product basis is calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income for by-product revenues, inventory production costs, the impact of purchase price allocation in connection with mergers and acquisitions on inventory accounting, realized gains and losses on hedges of production costs and other adjustments, which include the costs associated with a 5% in-kind royalty paid in respect of certain portions of Canadian Malartic, a 2% in-kind royalty paid in respect of Detour Lake, a 1.5% in-kind royalty paid in respect of Macassa, as well as smelting, refining and marketing charges and then dividing by the number of ounces of gold produced. Given the nature of the fair value adjustment on inventory related to mergers and acquisitions and the use of the total cash costs per ounce measures to reflect the cash generating capabilities of the Company’s operations, the calculations of total cash costs per ounce for Canadian Malartic has been adjusted for the purchase price allocation in the comparative period data. Investors should note that total cash costs per ounce are not reflective of all cash expenditures, as they do not include income tax payments, interest costs or dividend payments. Total cash costs per ounce on a co-product basis is calculated in the same manner as the total cash costs per ounce on a by-product basis, except that no adjustment is made for by-product metal revenues. Accordingly, the calculation of total cash costs per ounce on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals.
Total cash costs per ounce is intended to provide investors information about the cash-generating capabilities of the Company’s mining operations. Management also uses these measures to, and believes they are useful to investors so investors can, understand and monitor the performance of the Company’s mining operations. The Company believes that total cash costs per ounce is useful to help investors understand the costs associated with producing gold and the economics of gold mining. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce on a by-product basis measure allows management and investors to assess a mine’s cash-generating capabilities at various gold prices. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne as these measures are not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
Agnico Eagle’s primary business is gold production and the focus of its current operations and future development is on maximizing returns from gold production, with other metal production being incidental to the gold production process. Accordingly, all metals other than gold are considered by-products.
Unless otherwise indicated, total cash costs per ounce is reported on a by-product basis. Total cash costs per ounce is reported on a by-product basis because (i) the majority of the Company’s revenues are from gold, (ii) the Company mines ore, which contains gold, silver, zinc, copper and other metals, (iii) it is not possible to specifically assign all costs to revenues from the gold, silver, zinc, copper and other metals the Company produces, (iv) it is a method used by management and the Board of Directors to monitor operations, and (v) many other gold producers disclose similar measures on a by-product rather than a co-product basis.
Minesite costs per tonne are calculated by adjusting production costs as recorded in the condensed interim consolidated statements of income for inventory production costs and other adjustments, and then dividing by tonnage of ore processed. As the total cash costs per ounce can be affected by fluctuations in by‑product metal prices and foreign exchange rates, management believes that minesite costs per tonne is useful to investors in providing additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware, and investors should note, that this per tonne measure of performance can be affected by fluctuations in processing levels. This inherent limitation may be partially mitigated by using this measure in conjunction with production costs and other data prepared in accordance with IFRS.
The following tables set out a reconciliation of total cash costs per ounce and minesite costs per tonne to production costs, exclusive of amortization, for the three and nine months ended September 30, 2024 and September 30, 2023, as presented in the condensed interim consolidated statements of income in accordance with IFRS.
Total Production Costs by Mine
Three Months Ended Nine Months Ended
September 30, September 30,
(thousands of United States dollars) 2024 2023 2024 2023
Quebec
LaRonde mine $ 74,244 $ 66,477 $ 193,482 $ 170,153
LaRonde zone 5 mine 18,916 18,715 58,059 62,702
LaRonde complex 93,160 85,192 251,541 232,855
Canadian Malartic(i) 128,984 125,455 399,893 326,936
Goldex 34,265 28,805 100,531 84,800
Ontario
Detour Lake 127,159 106,396 379,366 333,214
Macassa 48,086 35,864 146,763 112,368
Nunavut
Meliadine 75,099 89,210 254,463 249,221
Meadowbank 115,705 133,919 352,881 381,411
Australia
Fosterville 44,346 27,539 114,824 99,969
Europe
Kittila 59,968 58,569 176,535 155,200
Mexico
Pinos Altos 46,464 40,147 122,980 107,778
La India 10,417 28,315 39,445 72,056
Production costs per the condensed interim consolidated statements of income $ 783,653 $ 759,411 $ 2,339,222 $ 2,155,808
Reconciliation of Production Costs to Total Cash Costs per Ounce by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne by Mine
(thousands of United States dollars, except as noted)
LaRonde mine Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 47,313 49,303 161,388 167,471
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 74,244 $ 1,569 $ 66,477 $ 1,348 $ 193,482 $ 1,199 $ 170,153 $ 1,016
Inventory adjustments(ii) (14,425) (305) (16,200) (328) (12,892) (80) (2,666) (16)
Realized gains and losses on 246 5 317 6 616 4 2,165 13
hedges of production costs
Other adjustments(v) 1,015 22 4,178 85 9,235 57 14,081 84
Total cash costs $ 61,080 $ 1,291 $ 54,772 $ 1,111 $ 190,441 $ 1,180 $ 183,733 $ 1,097
(co-product basis)
By-product metal revenues (10,097) (213) (11,627) (236) (39,703) (246) (41,316) (247)
Total cash costs $ 50,983 $ 1,078 $ 43,145 $ 875 $ 150,738 $ 934 $ 142,417 $ 850
(by-product basis)
LaRonde mine Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 355 365 1,149 1,101
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 74,244 $ 209 $ 66,477 $ 182 $ 193,482 $ 168 $ 170,153 $ 155
Production costs (C$) C$ 101,221 C$ 285 C$ 89,228 C$ 244 C$ 262,638 C$ 229 C$ 228,662 C$ 208
Inventory adjustments (C$)(iii) (18,800) (53) (19,881) (54) (16,069) (14) (1,455) (1)
Other adjustments (C$)(v) (4,419) (12) (2,752) (8) (8,019) (7) (9,195) (9)
Minesite costs (C$) C$ 78,002 C$ 220 C$ 66,595 C$ 182 C$ 238,550 C$ 208 C$ 218,012 C$ 198
LaRonde zone 5 mine Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 18,292 15,193 54,915 53,412
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 18,916 $ 1,034 $ 18,715 $ 1,232 $ 58,059 $ 1,057 $ 62,702 $ 1,174
Inventory adjustments(ii) 3,752 205 134 9 3,820 70 (127) (2)
Realized gains and losses on 86 5 106 7 215 4 722 13
hedges of production costs
Other adjustments(v) 1,030 56 753 49 2,396 43 1,864 35
Total cash costs $ 23,784 $ 1,300 $ 19,708 $ 1,297 $ 64,490 $ 1,174 $ 65,161 $ 1,220
(co-product basis)
By-product metal revenues (274) (15) (152) (10) (772) (14) (698) (13)
Total cash costs $ 23,510 $ 1,285 $ 19,556 $ 1,287 $ 63,718 $ 1,160 $ 64,463 $ 1,207
(by-product basis)
LaRonde zone 5 mine Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 332 262 898 894
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 18,916 $ 57 $ 18,715 $ 71 $ 58,059 $ 65 $ 62,702 $ 70
Production costs (C$) C$ 25,740 C$ 78 C$ 25,082 C$ 96 C$ 78,984 C$ 88 C$ 84,347 C$ 94
Inventory adjustments (C$)(iii) 5,072 15 234 - 5,192 6 (175) -
Minesite costs (C$) C$ 30,812 C$ 93 C$ 25,316 C$ 96 C$ 84,176 C$ 94 C$ 84,172 C$ 94
LaRonde complex Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 65,605 64,496 216,303 220,883
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 93,160 $ 1,420 $ 85,192 $ 1,321 $ 251,541 $ 1,163 $ 232,855 $ 1,054
Inventory adjustments(ii) (10,673) (162) (16,066) (249) (9,072) (42) (2,793) (13)
Realized gains and losses on 332 5 423 7 831 4 2,887 13
hedges of production costs
Other adjustments(v) 2,045 31 4,931 76 11,631 54 15,945 73
Total cash costs $ 84,864 $ 1,294 $ 74,480 $ 1,155 $ 254,931 $ 1,179 $ 248,894 $ 1,127
(co-product basis)
By-product metal revenues (10,371) (159) (11,779) (183) (40,475) (188) (42,014) (190)
Total cash costs $ 74,493 $ 1,135 $ 62,701 $ 972 $ 214,456 $ 991 $ 206,880 $ 937
(by-product basis)
LaRonde complex Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023
Tonnes of ore milled (thousands) 687 627 2,047 1,995
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 93,160 $ 136 $ 85,192 $ 136 $ 251,541 $ 123 $ 232,855 $ 117
Production costs (C$) C$ 126,961 C$ 185 C$ 114,310 C$ 182 C$ 341,622 C$ 167 C$ 313,009 C$ 157
Inventory adjustments (C$)(iii) (13,728) (20) (19,647) (31) (10,877) (5) (1,630) (1)
Other adjustments (C$)(v) (4,419) (7) (2,752) (4) (8,019) (4) (9,195) (5)
Minesite costs (C$) C$ 108,814 C$ 158 C$ 91,911 C$ 147 C$ 322,726 C$ 158 C$ 302,184 C$ 151
Canadian Malartic Three Months Ended Nine Months Ended
(per ounce)(i) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 141,392 177,243 509,169 435,683
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 128,984 $ 912 $ 125,455 $ 708 $ 399,893 $ 785 $ 326,936 $ 750
Inventory adjustments(ii) (2,590) (18) 6,994 39 7,076 14 7,532 17
Realized gains and losses on 997 7 - - 2,037 4 - -
hedges of production costs
Purchase price allocation to - - (3,626) (20) - - (26,447) (61)
inventory(iv)
In-kind royalties and other 19,269 136 15,414 87 58,292 115 40,631 94
adjustments(v)
Total cash costs $ 146,660 $ 1,037 $ 144,237 $ 814 $ 467,298 $ 918 $ 348,652 $ 800
(co-product basis)
By-product metal revenues (1,777) (12) (1,551) (9) (5,945) (12) (4,758) (11)
Total cash costs $ 144,883 $ 1,025 $ 142,686 $ 805 $ 461,353 $ 906 $ 343,894 $ 789
(by-product basis)
Canadian Malartic Three Months Ended Nine Months Ended
(per tonne)(i) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 4,862 4,911 15,217 12,055
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 128,984 $ 27 $ 125,455 $ 26 $ 399,893 $ 26 $ 326,936 $ 27
Production costs (C$) C$ 175,462 C$ 36 C$ 168,339 C$ 34 C$ 543,010 C$ 36 C$ 440,001 C$ 36
Inventory adjustments (C$)(iii) (3,655) (1) 9,569 2 9,830 - 10,820 1
Purchase price allocation to - - (3,904) (1) - - (34,555) (3)
inventory (C$)(iv)
In-kind royalties and other 25,677 6 20,081 4 78,244 5 53,505 5
adjustments (C$)(v)
Minesite costs (C$) C$ 197,484 C$ 41 C$ 194,085 C$ 39 C$ 631,084 C$ 41 C$ 469,771 C$ 39
Goldex Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 30,334 35,880 98,472 107,619
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 34,265 $ 1,130 $ 28,805 $ 803 $ 100,531 $ 1,021 $ 84,800 $ 788
Inventory adjustments(ii) (1,161) (39) 439 12 (482) (5) (16) -
Realized gains and losses on 148 5 207 6 369 4 1,419 13
hedges of production costs
Other adjustments(v) 762 25 47 1 1,959 20 149 1
Total cash costs $ 34,014 $ 1,121 $ 29,498 $ 822 $ 102,377 $ 1,040 $ 86,352 $ 802
(co-product basis)
By-product metal revenues (2,743) (90) (13) - (9,359) (95) (38) -
Total cash costs $ 31,271 $ 1,031 $ 29,485 $ 822 $ 93,018 $ 945 $ 86,314 $ 802
(by-product basis)
Goldex Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 739 756 2,264 2,215
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 34,265 $ 46 $ 28,805 $ 38 $ 100,531 $ 44 $ 84,800 $ 38
Production costs (C$) C$ 46,696 C$ 63 C$ 38,656 C$ 51 C$ 136,615 C$ 60 C$ 114,142 C$ 52
Inventory adjustments (C$)(iii) (1,619) (2) 625 1 (580) - (35) -
Minesite costs (C$) C$ 45,077 C$ 61 C$ 39,281 C$ 52 C$ 136,035 C$ 60 C$ 114,107 C$ 52
Detour Lake Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 173,891 152,762 492,889 483,971
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 127,159 $ 731 $ 106,396 $ 696 $ 379,366 $ 770 $ 333,214 $ 688
Inventory adjustments(ii) (2,726) (16) 3,705 24 (7,295) (15) 3,537 7
Realized gains and losses on 1,247 7 (1,530) (10) 2,394 5 4,565 10
hedges of production costs
In-kind royalties and other 10,726 62 7,063 47 27,593 56 24,048 50
adjustments(v)
Total cash costs $ 136,406 $ 784 $ 115,634 $ 757 $ 402,058 $ 816 $ 365,364 $ 755
(co-product basis)
By-product metal revenues (757) (5) (288) (2) (2,003) (4) (1,475) (3)
Total cash costs $ 135,649 $ 779 $ 115,346 $ 755 $ 400,055 $ 812 $ 363,889 $ 752
(by-product basis)
Detour Lake Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 7,082 5,630 20,376 18,827
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 127,159 $ 18 $ 106,396 $ 19 $ 379,366 $ 19 $ 333,214 $ 18
Production costs (C$) C$ 172,973 C$ 24 C$ 142,461 C$ 25 C$ 515,371 C$ 25 C$ 448,014 C$ 24
Inventory adjustments (C$)(iii) (3,935) - (8,125) (1) (9,622) - 4,747 -
In-kind royalties and other 11,914 2 8,339 1 30,538 1 28,485 2
adjustments (C$)(v)
Minesite costs (C$) C$ 180,952 C$ 26 C$ 142,675 C$ 25 C$ 536,287 C$ 26 C$ 481,246 C$ 26
Macassa Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 70,727 46,792 203,048 167,951
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 48,086 $ 680 $ 35,864 $ 766 $ 146,763 $ 723 $ 112,368 $ 669
Inventory adjustments(ii) 2,568 36 1,870 40 1,038 5 397 2
Realized gains and losses on 304 4 334 7 759 4 2,283 14
hedges of production costs
In-kind royalties and other 2,563 37 1,376 30 7,076 34 6,133 37
adjustments(v)
Total cash costs $ 53,521 $ 757 $ 39,444 $ 843 $ 155,636 $ 766 $ 121,181 $ 722
(co-product basis)
By-product metal revenues (442) (7) (107) (2) (662) (3) (483) (3)
Total cash costs $ 53,079 $ 750 $ 39,337 $ 841 $ 154,974 $ 763 $ 120,698 $ 719
(by-product basis)
Macassa Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 134 112 420 311
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 48,086 $ 359 $ 35,864 $ 320 $ 146,763 $ 349 $ 112,368 $ 361
Production costs (C$) C$ 65,489 C$ 489 C$ 48,508 C$ 435 C$ 199,917 C$ 476 C$ 151,744 C$ 488
Inventory adjustments (C$)(iii) 3,408 25 2,834 25 1,468 4 758 2
In-kind royalties and other 3,348 25 1,754 16 9,301 22 8,045 26
adjustments (C$)(v)
Minesite costs (C$) C$ 72,245 C$ 539 C$ 53,096 C$ 476 C$ 210,686 C$ 502 C$ 160,547 C$ 516
Meliadine Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 99,838 89,707 284,238 267,856
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 75,099 $ 752 $ 89,210 $ 994 $ 254,463 $ 895 $ 249,221 $ 930
Inventory adjustments(ii) 13,212 132 (2,334) (26) 2,457 9 12,518 47
Realized gains and losses on 505 5 299 3 1,612 6 (64) -
hedges of production costs
Other adjustments(v) 65 1 59 1 100 - 46 -
Total cash costs $ 88,881 $ 890 $ 87,234 $ 972 $ 258,632 $ 910 $ 261,721 $ 977
(co-product basis)
By-product metal revenues (135) (1) (138) (1) (650) (2) (477) (2)
Total cash costs $ 88,746 $ 889 $ 87,096 $ 971 $ 257,982 $ 908 $ 261,244 $ 975
(by-product basis)
Meliadine Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 533 470 1,450 1,407
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 75,099 $ 141 $ 89,210 $ 190 $ 254,463 $ 176 $ 249,221 $ 177
Production costs (C$) C$ 102,391 C$ 192 C$ 119,181 C$ 254 C$ 345,186 C$ 238 C$ 333,896 C$ 237
Inventory adjustments (C$)(iii) 17,937 34 (2,555) (6) 3,724 3 17,051 12
Minesite costs (C$) C$ 120,328 C$ 226 C$ 116,626 C$ 248 C$ 348,910 C$ 241 C$ 350,947 C$ 249
Meadowbank Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 133,502 116,555 387,695 322,440
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 115,705 $ 867 $ 133,919 $ 1,149 $ 352,881 $ 910 $ 381,411 $ 1,183
Inventory adjustments(ii) 6,117 46 9,165 78 5,412 14 2,463 8
Realized gains and losses on 681 5 115 1 2,502 6 (3,502) (11)
hedges of production costs
Other adjustments(v) (1) - 101 1 (46) - 50 -
Total cash costs $ 122,502 $ 918 $ 143,300 $ 1,229 $ 360,749 $ 930 $ 380,422 $ 1,180
(co-product basis)
By-product metal revenues (978) (8) (573) (4) (2,952) (7) (2,121) (7)
Total cash costs $ 121,524 $ 910 $ 142,727 $ 1,225 $ 357,797 $ 923 $ 378,301 $ 1,173
(by-product basis)
Meadowbank Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 1,083 1,077 3,144 2,905
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 115,705 $ 107 $ 133,919 $ 124 $ 352,881 $ 112 $ 381,411 $ 131
Production costs (C$) C$ 157,247 C$ 145 C$ 179,597 C$ 167 C$ 478,366 C$ 152 C$ 509,982 C$ 176
Inventory adjustments (C$)(iii) 8,236 8 12,457 11 7,470 3 3,599 1
Minesite costs (C$) C$ 165,483 C$ 153 C$ 192,054 C$ 178 C$ 485,836 C$ 155 C$ 513,581 C$ 177
Fosterville Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 65,532 59,790 188,064 228,161
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 44,346 $ 677 $ 27,539 $ 461 $ 114,824 $ 611 $ 99,969 $ 438
Inventory adjustments(ii) (1,523) (23) 1,093 18 (1,277) (7) (1,792) (8)
Realized gains and losses on (80) (1) 1,101 18 6 - 1,778 8
hedges of production costs
Other adjustments(v) 23 - 7 - 52 - 46 -
Total cash costs $ 42,766 $ 653 $ 29,740 $ 497 $ 113,605 $ 604 $ 100,001 $ 438
(co-product basis)
By-product metal revenues (135) (2) (119) (2) (462) (2) (397) (1)
Total cash costs $ 42,631 $ 651 $ 29,621 $ 495 $ 113,143 $ 602 $ 99,604 $ 437
(by-product basis)
Fosterville Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 246 144 652 468
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 44,346 $ 180 $ 27,539 $ 191 $ 114,824 $ 176 $ 99,969 $ 214
Production costs (A$) A$ 66,587 A$ 271 A$ 42,194 A$ 291 A$ 173,962 A$ 267 A$ 150,656 A$ 322
Inventory adjustments (A$)(ii) (2,406) (10) 1,818 13 (2,041) (3) (2,539) (6)
Minesite costs (A$) A$ 64,181 A$ 261 A$ 44,012 A$ 304 A$ 171,921 A$ 264 A$ 148,117 A$ 316
Kittila Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 56,715 59,408 166,967 173,230
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 59,968 $ 1,057 $ 58,569 $ 986 $ 176,535 $ 1,057 $ 155,200 $ 896
Inventory adjustments(ii) (2,410) (42) (2,439) (41) (3,554) (21) 305 2
Realized gains and losses on (157) (3) (788) (13) (138) (1) (2,346) (14)
hedges of production costs
Other adjustments(v) (41) (1) (20) (1) (161) (1) (1,293) (7)
Total cash costs $ 57,360 $ 1,011 $ 55,322 $ 931 $ 172,682 $ 1,034 $ 151,866 $ 877
(co-product basis)
By-product metal revenues (102) (1) (51) (1) (289) (1) (213) (2)
Total cash costs $ 57,258 $ 1,010 $ 55,271 $ 930 $ 172,393 $ 1,033 $ 151,653 $ 875
(by-product basis)
Kittila Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 544 527 1,550 1,440
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 59,968 $ 110 $ 58,569 $ 111 $ 176,535 $ 114 $ 155,200 $ 108
Production costs (€) € 54,519 € 100 € 53,071 € 101 € 162,375 € 105 € 144,073 € 100
Inventory adjustments (€)(iii) (2,469) (4) (960) (2) (3,354) (2) (128) -
Minesite costs (€) € 52,050 € 96 € 52,111 € 99 € 159,021 € 103 € 143,945 € 100
Pinos Altos Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 21,371 25,386 69,850 71,679
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 46,464 $ 2,174 $ 40,147 $ 1,581 $ 122,980 $ 1,761 $ 107,778 $ 1,504
Inventory adjustments(ii) (3,548) (166) 1,225 48 2,235 32 1,738 24
Realized gains and losses on - - (922) (36) - - (2,065) (29)
hedges of production costs
Other adjustments(v) 317 15 324 13 980 14 902 13
Total cash costs $ 43,233 $ 2,023 $ 40,774 $ 1,606 $ 126,195 $ 1,807 $ 108,353 $ 1,512
(co-product basis)
By-product metal revenues (10,517) (492) (7,527) (296) (26,556) (381) (19,754) (276)
Total cash costs $ 32,716 $ 1,531 $ 33,247 $ 1,310 $ 99,639 $ 1,426 $ 88,599 $ 1,236
(by-product basis)
Pinos Altos Three Months Ended Nine Months Ended
(per tonne) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) 446 450 1,326 1,215
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 46,464 $ 104 $ 40,147 $ 89 $ 122,980 $ 93 $ 107,778 $ 89
Inventory adjustments(iii) (3,548) (8) (1,984) (4) 2,235 1 (327) (1)
Minesite costs $ 42,916 $ 96 $ 38,163 $ 85 $ 125,215 $ 94 $ 107,451 $ 88
La India Three Months Ended Nine Months Ended
(per ounce) September 30, September 30,
2024 2023 2024 2023
Gold production (ounces) 4,529 22,269 21,190 56,423
(thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce) (thousands) ($ per ounce)
Production costs $ 10,417 $ 2,300 $ 28,315 $ 1,271 $ 39,445 $ 1,861 $ 72,056 $ 1,277
Inventory adjustments(ii) 2,633 582 (2,319) (103) 2,780 131 447 8
Other adjustments(v) 91 20 139 6 355 17 402 7
Total cash costs $ 13,141 $ 2,902 $ 26,135 $ 1,174 $ 42,580 $ 2,009 $ 72,905 $ 1,292
(co-product basis)
By-product metal revenues (133) (30) (395) (18) (991) (46) (1,117) (20)
Total cash costs $ 13,008 $ 2,872 $ 25,740 $ 1,156 $ 41,589 $ 1,963 $ 71,788 $ 1,272
(by-product basis)
La India Three Months Ended Nine Months Ended
(per tonne)(vi) September 30, September 30,
2024 2023 2024 2023
Tonnes of ore milled (thousands) - 970 - 2,510
(thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne) (thousands) ($ per tonne)
Production costs $ 10,417 $ - $ 28,315 $ 29 $ 39,445 $ - $ 72,056 $ 29
Inventory adjustments(iii) (10,417) - (2,319) (2) (39,445) - 447 -
Minesite costs $ - $ - $ 25,996 $ 27 $ - $ - $ 72,503 $ 29
Notes: (i) The information set out in this table reflects the Company's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% interest thereafter, following the closing of the Yamana Transaction (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 are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue (iii) This inventory adjustment reflects production costs associated with the portion of production still in inventory (iv) On March 31, 2023, the Company closed the Yamana Transaction and this adjustment reflects the fair value allocated to inventory on Canadian Malartic as part of the purchase price allocation (v) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of Canadian Malartic, a 2% in-kind royalty paid in respect of Detour Lake, a 1.5% in-kind royalty paid in respect of Macassa and smelting, refining, and marketing charges to production costs (vi) La India's cost calculations per tonne for the three and nine months ended September 30, 2024 excludes approximately $10.4 and $39.4 million of production costs incurred during the period, respectively, following the cessation of mining activities at La India during the fourth quarter of 2023
All-in sustaining costs per ounce
All-in sustaining costs per ounce (also referred to as “AISC per ounce”) on a by-product basis is calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options), lease payments related to sustaining assets and reclamation expenses, and then dividing by the number of ounces of gold produced. These additional costs reflect the additional expenditures that are required to be made to maintain current production levels. The AISC per ounce on a co-product basis is calculated in the same manner as the AISC per ounce on a by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment is made for by-product metal revenues. Investors should note that AISC per ounce is not reflective of all cash expenditures as it does not include income tax payments, interest costs or dividend payments, nor does it include non-cash expenditures, such as depreciation and amortization. Unless otherwise indicated, all-in sustaining costs per ounce is reported on a by-product basis (see “Total cash costs per ounce” for a discussion of regarding the Company’s use of by-product basis reporting).
Management believes that AISC per ounce is useful to investors as it reflects total sustaining expenditures of producing and selling an ounce of gold while maintaining current operations and, as such, provides useful information about operating performance. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of AISC per ounce on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne as this measure is not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS.
The Company follows the guidance on calculation of AISC per ounce released by the World Gold Council (“WGC”) in 2018. The WGC is a non-regulatory market development organization for the gold industry that has worked closely with its member companies to develop guidance in respect of relevant non-GAAP measures. Notwithstanding the Company’s adoption of the WGC’s guidance, AISC per ounce reported by the Company may not be comparable to data reported by other gold mining companies.
The following tables set out a reconciliation of production costs to all-in sustaining costs per ounce for the three and nine months ended September 30, 2024 and September 30, 2023, on both a by-product basis (deducting by-product metals revenue from production costs) and co-product basis (without deducting by-product metal revenues).
(UnitedStates dollars per ounce, except where noted) Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Production costs per the consolidated statements of income $ 783,653 $ 759,411 $ 2,339,222 $ 2,155,808
(thousands of UnitedStates dollars)
Gold production (ounces) 863,445 850,429 2,637,935 2,536,445
Production costs per ounce $ 908 $ 893 $ 887 $ 850
Adjustments:
Inventory adjustments(i) - 2 - 10
Purchase price allocation to inventory(ii) - (4) - (10)
Realized gains and losses on hedges of production costs 5 (1) 4 2
Other(iii) 40 34 40 33
Total cash costs per ounce (co-product basis) $ 953 $ 924 $ 931 $ 885
By-product metal revenues (32) (26) (34) (28)
Total cash costs per ounce (by-product basis) $ 921 $ 898 $ 897 $ 857
Adjustments:
Sustaining capital expenditures (including capitalized exploration) 292 248 244 234
General and administrative expenses (including stock option expense) 56 45 55 53
Non-cash reclamation provision and sustaining leases(iv) 17 19 18 18
All-in sustaining costs per ounce (by-product basis) $ 1,286 $ 1,210 $ 1,214 $ 1,162
By-product metal revenues 32 26 34 28
All-in sustaining costs per ounce (co-product basis) $ 1,318 $ 1,236 $ 1,248 $ 1,190
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 are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue (ii) On March 31, 2023, the Company closed the Yamana Transaction and this adjustment reflects the fair value allocated to inventory at CanadianMalartic as part of the purchase price allocation (iii) Other adjustments consist of in-kind royalties, smelting, refining and marketing charges to production costs (iv) Sustaining leases are lease payments related to sustaining assets
Adjusted net income and adjusted net income per share
Adjusted net income and adjusted net income per share are calculated by adjusting the net income as recorded in the condensed interim consolidated statements of income for the effects of certain items that the Company believes are not reflective of the Company’s underlying performance for the reporting period. Adjusted net income is calculated by adjusting net income for items such as foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, severance and transaction costs related to acquisitions, revaluation gains, environmental remediation, gains or losses on the disposal of assets, purchase price allocations to inventory, impairment loss charges and reversals and retroactive payments and income and mining taxes adjustments. Adjusted net income per share is calculated by dividing adjusted net income by the weighted average number of shares outstanding at the end of the period on a basic and diluted basis.
The Company believes that these generally accepted industry measures are useful to investors in that they allow for the evaluation of the results of continuing operations and in making comparisons between periods. Adjusted net income and adjusted net income per share are intended to provide investors with information about the Company’s continuing income generating capabilities from its core mining business, excluding the above adjustments, which the Company believes are not reflective of operational performance. Management uses this measure to, and believes it is useful to investors so they can, understand and monitor for the operating performance of the Company in conjunction with other data prepared in accordance with IFRS.
The following tables set out a reconciliation of net income per the condensed interim consolidated statements of income to adjusted net income for the three and nine months ended September 30, 2024, and September 30, 2023.
Three Months Ended Nine Months Ended
September 30, September 30,
(thousands of United States dollars) 2024 2023 2024 2023
Restated(i) Restated(i)
Net income for the period - basic $ 567,118 $ 174,803 $ 1,386,326 $ 2,315,364
Dilutive impact of cash settling LTIP - (1,915) - (4,831)
Net income for the period - diluted $ 567,118 $ 172,888 $ 1,386,326 $ 2,310,533
Foreign currency translation loss (gain) 3,436 (6,492) (748) (2,258)
Realized and unrealized (gain) loss on derivative financial instruments (17,153) 34,010 48,390 1,038
Transaction costs related to acquisitions - 4,591 - 21,503
Revaluation gain on Yamana Transaction - - - (1,543,414)
Environmental remediation 6,294 1,890 11,201 (87)
Net loss on disposal of property, plant and equipment 5,420 5,491 25,786 9,092
Purchase price allocation to inventory - 3,656 - 26,477
Other(ii) - 3,262 13,215 3,262
Income and mining taxes adjustments(iii) 7,462 (5,070) 1,146 (24,293)
Adjusted net income for the period - basic $ 572,577 $ 216,141 $ 1,485,316 $ 806,684
Adjusted net income for the period - diluted $ 572,577 $ 214,226 $ 1,485,316 $ 801,853
Notes: (i) Certain previously reported line items have been restated to reflect the final purchase price allocation of theYamana Transaction (ii) Other adjustments relate to retroactive payments that management considers not reflective of the Company's underlying performance in the current period (iii) Income and mining taxes adjustments reflect items such as foreign currency translation recorded to the income and mining taxes expense, the impact of income and mining taxes on adjusted items, recognition of previously unrecognized capital losses, the result of income and mining taxes audits, impact of tax law changes and adjustments to prior period tax filings
EBITDA and adjusted EBITDA
EBITDA is calculated by adjusting net income for finance costs, amortization of property, plant and mine development and income and mining tax expense line items as reported in the condensed interim consolidated statements of income.
Adjusted EBITDA removes the effects of certain items that the Company believes are not reflective of the Company’s underlying performance for the reporting period. Adjusted EBITDA is calculated by adjusting the EBITDA calculation for items such as foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, severance and transaction costs related to acquisitions, revaluation gains, environmental remediation, gains or losses on the disposal of assets, purchase price allocations to inventory, impairment loss charges and reversals and retroactive payments.
The Company believes that these generally accepted industry measures are useful in that they allow for the evaluation of the cash generating capability of the Company to fund its working capital, capital expenditure and debt repayments. EBITDA and Adjusted EBITDA are intended to provide investors with information about the Company’s continuing cash generating capability from its core mining business, excluding the above adjustments, which management believes are not reflective of operational performance. Management uses these measures to, and believes it is useful to investors so they can, understand and monitor the cash generating capability of the Company in conjunction with other data prepared in accordance with IFRS.
The following tables set out a reconciliation of net income per the condensed interim consolidated statements of income to EBITDA and adjusted EBITDA for the three and nine months ended September 30, 2024, and September 30, 2023.
Three Months Ended Nine Months Ended
September 30, September 30,
(thousands of UnitedStates dollars) 2024 2023 2024 2023
Restated(i) Restated(i)
Net income for the period $ 567,118 $ 174,803 $ 1,386,326 $ 2,315,364
Finance costs 28,527 35,704 99,265 94,989
Amortization of property, plant and mine development 390,245 421,091 1,125,859 1,111,364
Income and mining tax expense 272,672 90,412 652,718 356,638
EBITDA 1,258,562 722,010 3,264,168 3,878,355
Foreign currency translation loss (gain) 3,436 (6,492) (748) (2,258)
Realized and unrealized (gain) loss on derivative financial instruments (17,153) 34,010 48,390 1,038
Transaction costs related to acquisitions - 4,591 - 21,503
Revaluation gain on Yamana Transaction - - - (1,543,414)
Environmental remediation 6,294 1,890 11,201 (87)
Net loss on disposal of property, plant and equipment 5,420 5,491 25,786 9,092
Purchase price allocation to inventory - 3,656 - 26,477
Other(ii) - 3,262 13,215 3,262
Adjusted EBITDA $ 1,256,559 $ 768,418 $ 3,362,012 $ 2,393,968
Notes: (i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction. (ii) Other adjustments relate to retroactive payments that management considers not reflective of the Company's underlying performance in the current period.
Cash provided by operating activities before changes in non-cash working capital balances and cash provided by operating activities before changes in non-cash working capital balances per share
Cash provided by operating activities before changes in non-cash working capital balances and cash provided by operating activities before changes in non-cash working capital balances per share are calculated by adjusting the cash provided by operating activities as shown in the condensed interim consolidated statements of cash flows for the effects of changes in non-cash working capital balances such as income taxes, inventories, other current assets, accounts payable and accrued liabilities and interest payable. The per share amount is calculated by dividing cash provided by operating activities before changes in non-cash working capital balances by the weighted average number of shares outstanding at the end of the period on a basic basis. The Company believes that changes in working capital can be volatile due to numerous factors, including the timing of payments. Management uses these measures to, and believes they are useful to investors so they can, assess the underlying operating cash flow performance and future operating cash flow generating capabilities of the Company in conjunction with other data prepared in accordance with IFRS. A reconciliation of these measures to the nearest IFRS measure is provided below.
Free cash flow and free cash flow before changes in non-cash working capital balances
Free cash flow is calculated by deducting additions to property, plant and mine development from the cash provided by operating activities line item as recorded in the condensed interim consolidated statements of cash flows.
Free cash flow before changes in non-cash components of working capital is calculated by excluding items such as the effect of changes in non-cash components of working capital from free cash flow, which includes income taxes, inventory, other current assets, accounts payable and accrued liabilities and interest payable.
The Company believes that these generally accepted industry measures are useful in that they allow for the evaluation of the Company’s ability to repay creditors and return cash to shareholders without relying on external sources of funding. Free cash flow and free cash flow before changes in non-cash components of working capital also provide investors with information about the Company’s financial position and its ability to generate cash to fund operational and capital requirements as well as return cash to shareholders. Management uses these measures in conjunction with other data prepared in accordance with IFRS to, and believes it is useful to investors so they can, understand and monitor the cash generating ability of the Company.
The following tables set out a reconciliation of cash provided by operating activities per the condensed interim consolidated statements of cash flows to free cash flow and free cash flow before changes in non-cash working capital balances and to cash provided by operating activities before changes in non-cash working capital balances for the three and nine months ended September 30, 2024, and September 30, 2023.
Three Months Ended Nine Months Ended S
September 30, eptember 30,
(thousands of UnitedStates dollars) 2024 2023 2024 2023
Restated(i) Restated(i)
Cash provided by operating activities $ 1,084,532 $ 502,088 $ 2,829,043 $ 1,873,701
Additions to property, plant and mine development (464,101) (419,832) (1,255,786) (1,228,387)
Free Cash Flow 620,431 82,256 1,573,257 645,314
Changes in income taxes (95,930) 7,425 (142,732) (81,980)
Changes in inventory 156,871 118,251 165,727 144,998
Changes in other current assets (41,263) 3,527 16,237 86,947
Changes in accounts payable and accrued liabilities (80,704) 49,432 (74,622) (51,427)
Changes in interest payable 3,964 (12,067) (2,867) (1,760)
Free cash flow before changes in non-cash working capital balances $ 563,369 $ 248,824 $ 1,535,000 $ 742,092
Additions to property, plant and mine development 464,101 419,832 1,255,786 1,228,387
Cash provided by operating activities before changes in non-cash $ 1,027,470 $ 668,656 $ 2,790,786 $ 1,970,479
working capital balances
Cash provided by operating activities per share - basic $ 2.16 $ 1.01 $ 5.67 $ 3.85
Cash provided by operating activities before changes in non-cash $ 2.05 $ 1.35 $ 5.59 $ 4.05
working capital balances per share - basic
Free cash flow per share - basic $ 1.24 $ 0.17 $ 3.15 $ 1.33
Free cash flow before changes in non-cash working capital $ 1.12 $ 0.50 $ 3.07 $ 1.53
balances - basic
Note: (i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction.
Operating margin
Operating margin is calculated by deducting production costs from revenue from mining operations. In order to reconcile operating margin to net income as recorded in the condensed interim consolidated financial statements, the Company adds the following items to the operating margin: income and mining taxes expense; other expenses (income); care and maintenance expenses; foreign currency translation (gain) loss; environmental remediation costs; gain (loss) on derivative financial instruments; finance costs; general and administrative expenses; amortization of property, plant and mine development; exploration and corporate development expenses; and revaluation gain and impairment losses (reversals). The Company believes that operating margin is a useful measure to investors as it reflects the operating performance of its individual mines associated with the ongoing production and sale of gold and by-product metals without allocating Company-wide overhead, including exploration and corporate development expenses, amortization of property, plant and mine development, general and administrative expenses, finance costs, gain and losses on derivative financial instruments, environmental remediation costs, foreign currency translation gains and losses, other expenses and income and mining tax expenses. Management uses this measure internally to plan and forecast future operating results. Management believes this measure is useful to investors as it provides them with additional information about the Company’s underlying operating results and should be evaluated in conjunction with other data prepared in accordance with IFRS. For a reconciliation of operating margin to revenue from mining operations reported in the Company’s financial statements, see “Summary of Operations Key Performance Indicators” below.
Capital expenditures
Capital expenditures are calculated by deducting working capital adjustments from additions to property, plant and mine development per the condensed interim consolidated statements of cash flows.
Capital expenditures are classified into sustaining capital expenditures and development capital expenditures. Sustaining capital expenditures are expenditures incurred during the production phase to sustain and maintain existing assets so they can achieve constant expected levels of production from which the Company will derive economic benefits. Sustaining capital expenditures include expenditure for assets to retain their existing productive capacity as well as to enhance performance and reliability of the operations. Development capital expenditures represent the spending at new projects and/or expenditures at existing operations that are undertaken with the intention to increase production levels or mine life above the current plans. Management uses these measures in the capital allocation process and to assess the effectiveness of its investments. Management believes these measures are useful so investors can assess the purpose and effectiveness of the capital expenditures split between sustaining and development in each reporting period. The classification between sustaining and development capital expenditures does not have a standardized definition in accordance with IFRS and other companies may classify expenditures in a different manner.
The following tables set out a reconciliation of sustaining capital expenditures and development capital expenditures to the additions to property, plant and mine development per the condensed interim consolidated statements of cash flows for the three and nine months ended September 30, 2024 and September 30, 2023.
(thousands of United States dollars) Three Months Ended Nine Months Ended
September 30, September 30,
2024 20231 2024 20231
Sustaining capital expenditures(ii) $ 252,962 $ 211,298 $ 648,909 $ 592,843
Development capital expenditures(ii) 232,833 195,128 616,206 571,364
Total Capital Expenditures $ 485,795 $ 406,426 $ 1,265,115 $ 1,164,207
Working capital adjustments (21,694) 13,406 (9,329) 64,180
Additions to property, plant and mine development per the $ 464,101 $ 419,832 $ 1,255,786 $ 1,228,387
condensed interim consolidated statements of cash flows
Notes: (i) The information set out in this table reflects the Company's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% interest thereafter. (ii) Sustaining capital expenditures and development capital expenditures include capitalized exploration.
Net debt
Net debt is calculated by adjusting the total of the current portion of long-term debt and non-current long-term debt as recorded on the condensed interim consolidated balance sheets for deferred financing costs and cash and cash equivalents. Management believes the measure of net debt is useful to help investors to determine the Company’s overall debt position and to evaluate the future debt capacity of the Company.
The following tables set out a reconciliation of long-term debt per the condensed interim consolidated balance sheets to net debt as at September 30, 2024, and December 31, 2023.
As at As at (thousands of United States dollars) September 30, 2024 December 31, 2023 Current portion of long-term debt per the condensed interim consolidated balance sheets $ 415,000 $ 100,000 Non-current portion of long-term debt 1,052,233 1,743,086 Long-term debt $ 1,467,233 $ 1,843,086 Adjustment: Cash and cash equivalents $ (977,215) $ (338,648) Net Debt $ 490,018 $ 1,504,438
Forward-Looking Non-GAAP Measures
This news release also contains information as to estimated future total cash costs per ounce and AISC per ounce. The estimates are based upon the total cash costs per ounce and AISC per ounce that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at October 30, 2024. Certain statements contained in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” under the provisions of Canadian provincial securities laws and are referred to herein as “forward-looking statements”. All statements, other than statements of historical fact, that address circumstances, events, activities or developments that could, or may or will occur are forward-looking statements. When used in this news release, the words “achieve”, “aim”, “anticipate”, “commit”, “could”, “estimate”, “expect”, “forecast”, “future”, “guide”, “plan”, “potential”, “schedule”, “target”, “track”, “will”, and similar expressions are intended to identify forward-looking statements. Such statements include the Company’s forward-looking guidance, including metal production, estimated ore grades, recovery rates, project timelines, drilling targets or results, life of mine estimates, total cash costs per ounce, AISC per ounce, minesite costs per tonne, other expenses and cash flows; the potential for additional gold production at the Company’s sites; the estimated timing and conclusions of the Company’s studies and evaluations; the methods by which ore will be extracted or processed; the Company’s expansion plans at Detour Lake, Upper Beaver and Odyssey, including the timing, funding, completion and commissioning thereof and the commencement of production therefrom; the Company’s plans at Hope Bay and San Nicolás; statements concerning other expansion projects, recovery rates, mill throughput, optimization efforts and projected exploration, including costs and other estimates upon which such projections are based; timing and amounts of capital expenditures, other expenditures and other cash needs, and expectations as to the funding thereof; estimates of future mineral reserves, mineral resources, mineral production and sales; the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; anticipated cost inflation and its effect on the Company’s costs and results; estimates of mineral reserves and mineral resources and the effect of drill results and studies on future mineral reserves and mineral resources; the Company’s ability to obtain the necessary permits and authorizations in connection with its proposed or current exploration, development and mining operations, including at Meliadine, Upper Beaver and San Nicolás, and the anticipated timing thereof; future exploration; the anticipated timing of events with respect to the Company’s mine sites; the Company’s plans and strategies with respect to climate change and greenhouse gas emissions reductions; the sufficiency of the Company’s cash resources; the Company’s plans with respect to hedging and the effectiveness of its hedging strategies; future activity with respect to the Company’s unsecured revolving bank credit facility, the term loan facility and other indebtedness; future dividend amounts, record dates, payment dates and discount rates under the dividend reinvestment plan; plans with respect to activity under the NCIB; and anticipated trends with respect to the Company’s operations, exploration and the funding thereof. Such statements reflect the Company’s views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward-looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management’s discussion and analysis (“MD&A”) and the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2023 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2023 (“Form 40-F”) filed with the U.S. Securities and Exchange Commission (the “SEC”) as well as: that there are no significant disruptions affecting operations; that production, permitting, development, expansion and the ramp-up of operations at each of Agnico Eagle’s properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, foreign exchange rates and prices for key mining and construction inputs (including labour and electricity) will be consistent with Agnico Eagle’s expectations; that Agnico Eagle’s current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that seismic activity at the Company’s operations at LaRonde, Goldex, Fosterville and other properties is as expected by the Company and that the Company’s efforts to mitigate its effect on mining operations, including with respect to community relations, are successful; that the Company’s current plans to address climate change and reduce greenhouse gas emissions are successful; that the Company’s current plans to optimize production are successful; that there are no material variations in the current tax and regulatory environment; that governments, the Company or others do not take measures in response to pandemics or other health emergencies or otherwise that, individually or in the aggregate, materially affect the Company’s ability to operate its business or its productivity; and that measures taken relating to, or other effects of, pandemics or other health emergencies do not affect the Company’s ability to obtain necessary supplies and deliver them to its mine sites. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; foreign exchange rate fluctuations; inflationary pressures; financing of additional capital requirements; cost of exploration and development programs; seismic activity at the Company’s operations, including at LaRonde, Goldex and Fosterville; mining risks; community protests, including by Indigenous groups; risks associated with foreign operations; risks associated with joint ventures; governmental and environmental regulation; the volatility of the Company’s stock price; risks associated with the Company’s currency, fuel and by-product metal derivative strategies; the current interest rate environment; the potential for major economies to encounter a slowdown in economic activity or a recession; the potential for increased conflict or hostilities in various regions, including Europe and the Middle East; and the extent and manner of communicable diseases or outbreaks, and measures taken by governments, the Company or others to attempt to mitigate the spread thereof may directly or indirectly affect the Company. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see theAIF and MD&A filed on SEDAR+ at www.sedarplus.ca and included in the Form 40-F filed on EDGAR at www.sec.gov, as well as the Company’s other filings with the Canadian securities regulators and the SEC. Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral Resources
The mineral reserve and mineral resource estimates contained in this news release have been prepared in accordance with the Canadian securities administrators’ (the “CSA”) National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
In 2019, the SEC’s disclosure requirements and policies for mining properties were amended to more closely align with current industry and global regulatory practices and standards, including NI 43-101. However, Canadian issuers that report in the United States using the Multijurisdictional Disclosure System (“MJDS”), such as the Company, may still use NI 43-101 rather than the SEC disclosure requirements when using the SEC’s MJDS registration statement and annual report forms. Accordingly, mineral reserve and mineral resource information contained in this news release may not be comparable to similar information disclosed by U.S. companies.
Investors are cautioned that while the SEC recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineral deposits in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility.Accordingly, investors are cautioned not to assume that any “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” that the Company reports in this news release are or will be economically or legally mineable. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances.
Further, “inferred mineral resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category.
The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained ounces. Mineral reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news release relating to Nunavut, Quebec and Finland operations has been approved by Dominique Girard, Eng., Executive Vice-President & Chief Operating Officer – Nunavut, Quebec & Europe; relating to Ontario, Australia and Mexico operations has been approved by Natasha Vaz, P.Eng., Executive Vice-President & Chief Operating Officer – Ontario, Australia & Mexico; relating to exploration has been approved by Guy Gosselin, Eng. and P.Geo., Executive Vice-President, Exploration; and relating to mineral reserves and mineral resources has been approved by Dyane Duquette, P.Geo., Vice-President, Mineral Resources Management, each of whom is a “Qualified Person” for the purposes of NI 43-101.
Additional Information
Additional information about each of the Company’s material mineral projects as at December31, 2023, including information regarding data verification, key assumptions, parameters and methods used to estimate mineral reserves and mineral resources and the risks that could materially affect the development of the mineral reserves and mineral resources required by sections 3.2 and 3.3 and paragraphs 3.4(a), (c) and (d) of NI 43-101 can be found in the Company’s AIF and MD&A filed on SEDAR+ each of which forms a part of the Company’s Form 40-F filed with the SEC on EDGAR and in the following technical reports filed on SEDAR+ in respect of the Company’s material mineral properties: Detour Lake Operation, Ontario, Canada, NI 43-101 Technical Report (September 20, 2024); NI 43-101 Technical Report of the LaRonde complex in Québec, Canada (March 24, 2023); NI 43-101 Technical Report Canadian Malartic Mine, Québec, Canada (March 25, 2021); Technical Report on the Mineral Resources and Mineral Reserves at Meadowbank Gold complex including the Amaruq Satellite Mine Development, Nunavut, Canada as at December 31, 2017 (February 14, 2018); the Updated Technical Report on the Meliadine Gold Project, Nunavut, Canada (February 11, 2015).
APPENDIX A – EXPLORATION DETAILS
SMC, Main Break zones and AK deposit at Macassa complex
Drill hole Zone / deposit From To Depth of Estimated Gold grade Gold grade
(metres) (metres) midpoint true (g/t) (g/t)
below width (uncapped) (capped)*
surface (metres)
(metres)
57-1556 SMC West 152.5 155.1 1,713 2.0 12.5 12.5
57-1556 SMC West 242.5 245.0 1,710 2.2 31.8 31.8
58-1142 Main Break 171.7 173.7 1,855 1.9 27.4 18.0
58-1290 Main Break 194.0 197.2 1,986 3.2 19.5 19.5
KLAK-321 AK 168.6 174.7 245 5.7 7.7 7.7
KLAK-339 AK 176.6 178.6 251 1.9 11.8 11.8
*Results from the Macassa mine use a capping factor ranging from 68.6 g/t to 445.7 g/t gold depending on the zone. Results from AK use a capping factor of 70 g/t gold.
Fosterville
Drill hole Zone From (metres) To Depth of Estimated Gold grade (g/t)
(metres) midpoint truewidth (uncapped)*
below surface (metres)
(metres)
UDH4996 Cardinal 348.8 353.0 1,764 3.2 6.8
UDH4999A Cardinal 357.0 363.6 1,785 5.7 72.8
including Cardinal 363.3 363.6 1,787 0.28 1,383.2
UDR062 Curie 575.7 585.1 705 7.7 5.2
UDR063 Curie 606.3 619.4 613 10.7 3.0
*Results from the Fosterville mine are uncapped.
EXPLORATIONDRILL COLLAR COORDINATES
Drill hole UTM East* UTM North* Elevation (metres above sea level) Azimuth (degrees) Dip Length
(degrees) (metres)
Odyssey mine
MEX24-311W 718682 5334768 307 147 -60 2,092
MEX24-311WA 718682 5334768 307 147 -60 2,048
MEX24-315 718652 5334762 307 161 -52 1,851
UGEG-054-002 717965 5334110 -229 176 -22 777
UGEG-075-007 717922 5334061 -250 195 -25 751
UGEG-075-022 717920 5334061 -250 185 -27 769
MEX24-315 718652 5334762 307 161 -52 1,851
MEX24-316 718604 5334758 308 170 -57 1,876
MEX24-317 718664 5334762 308 160 -63 2,076
MEX24-318 718652 5334763 307 166 -45 1,749
UGOD-075-006 717784 5334183 -321 9 -41 522
UGOD-075-007 717785 5334182 -320 31 -35 559
UGOD-075-008 717785 5334182 -321 15 -37 531
Detour Lake
DLM24-820 586876 5542301 296 188 -69 975
DLM24-829 587208 5541641 292 178 -61 433
DLM24-859 588927 5541623 284 181 -61 801
DLM24-882C 587880 5541938 287 174 -62 720
DLM24-882CW 587880 5541938 287 174 -62 281
DLM24-895AW 587001 5541947 306 176 -64 570
DLM24-931A 587844 5541779 286 177 -60 786
DLM24-940 588685 5541727 287 181 -58 1,056
DLM24-952 588604 5541692 288 182 -60 975
DLM24-956 588288 5541584 289 177 -58 849
DLM24-958C 587922 5541872 286 175 -62 717
DLM24-959A 588167 5541657 288 176 -57 939
DLM24-963 589167 5541655 284 180 -59 795
DLM24-967 589210 5541518 283 180 -58 1,053
DLM24-978 587409 5541505 287 176 -56 297
DLM24-990 586724 5541749 291 179 -61 501
DLM24-1000 587366 5541638 288 177 -60 470
Meliadine
ML425-9204-D6 539204 6988938 -450 181 -52 331
ML425-9323-D2 539323 6988928 -437 143 -69 372
ML425-9323-D15 539322 6988928 -435 188 -54 316
ML425-9323-D29B 539324 6988928 -435 170 -52 318
ML425-9950-D26 539947 6989006 -422 227 -55 492
M24-3849 540383 6987235 62 204 -68 430
M24-3876 540053 6987340 62 202 -65 615
M24-3879A 540039 6987491 62 203 -69 555
M24-3901A 540070 6987218 62 203 -68 393
M24-3936 539306 6988356 20 210 -49 279
M24-3938 539317 6988354 20 195 -44 258
M24-3947 539656 6988314 35 175 -66 258
M24-3948 539696 6988370 35 179 -67 420
M24-3992 538822 6988345 69 179 -48 207
ML375-9664-D20 539665 6988397 -279 144 -68 261
ML400-8931-U10A 538931 6988454 -313 161 14 165
ML400-9970-D3 539970 6988460 -323 217 -35 201
ML400-9970-D19 539968 6988460 -322 206 -49 195
ML400-9970-D23 539973 6988461 -323 112 -69 279
ML400-9970-D24 539970 6988460 -322 165 -55 234
ML400-9970-D25 539973 6988462 -323 101 -76 280
ML400-9970-D12 539971 6988460 -322 148 -45 210
ML400-9970-D28 539971 6988460 -323 138 -54 205
ML475-9228-D1 539970 6988460 -322 165 -55 234
ML475-9228-D13 539972 6988460 -322 127 -61 246
Hope Bay
HBM23-105 435438 7548956 26 240 -58 912
HBM24-183 435244 7549203 26 237 -57 857
HBM24-211 434791 7548246 35 68 -65 932
HBM24-212 434855 7548120 35 71 -50 773
HBM24-213 435025 7548254 62 88 -74 771
HBM24-217 434855 7548120 35 71 -60 918
HBM24-219A 434899 7548269 57 73 -68 804
HBM24-232 435042 7548162 69 77 -61 629
HBM24-237 435108 7548041 38 71 -66 650
HBM24-241 434863 7548096 35 74 -51 766
HBM24-246 434823 7548148 33 73 -55 804
HBM24-247 434799 7548141 32 70 -59 841
HBM24-248 434797 7548194 34 70 -54 847
Macassa
57-1556 568424 5331071 -1402 337 3 290
58-1142 570015 5332170 -1536 343 3 274
58-1290 570230 5332242 -1558 346 -29 284
KLAK-321 570289 5331414 32 165 23 213
KLAK-339 570289 5331414 32 138 20 198
Fosterville
UDH4996 1531 5073 3710 95 -66 384
UDH4999A 1531 5073 3710 82 -70 372
UDR062 2935 11014 4713 114 -39 654
UDR063 2935 11014 4713 112 -29 654
*Coordinate Systems: NAD 83 UTM Zone 17N for Odyssey; NAD 1983 UTM Zone 17N for Detour Lake and Macassa; NAD 1983 UTM Zone 14N for Meliadine; NAD 1983 UTM Zone 13N for Hope Bay; Mine grid including elevation for Fosterville.
APPENDIX B – FINANCIAL INFORMATION
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of UnitedStates dollars, except where noted)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
(Restated)(i) (Restated)(i)
Net income - key line items:
Revenue from mine operations:
Quebec
LaRonde mine 159,294 126,899 435,799 362,984
LaRonde zone 5 mine 47,363 33,290 127,392 99,370
Canadian Malartic(iii) 345,969 320,044 1,092,558 793,989
Goldex 81,384 68,467 237,304 209,802
Ontario
Detour Lake 437,920 288,156 1,140,293 911,819
Macassa 162,334 85,407 455,203 316,145
Nunavut
Meliadine 208,209 180,344 630,724 507,057
Meadowbank 315,047 210,843 873,047 616,512
Australia
Fosterville 167,368 116,916 433,429 454,291
Europe
Kittila 148,652 113,729 395,875 332,616
Mexico
Pinos Altos 68,336 54,390 184,526 156,227
La India 13,733 43,926 55,903 109,457
Revenues from mining operations $ 2,155,609 $ 1,642,411 $ 6,062,053 $ 4,870,269
Production costs 783,653 759,411 2,339,222 2,155,808
Total operating margin(ii) 1,371,956 883,000 3,722,831 2,714,461
Amortization of property, plant and mine development 390,245 421,091 1,125,859 1,111,364
Revaluation gain(iv) - - - (1,543,414)
Exploration, corporate and other 141,921 196,694 557,928 474,509
Income before income and mining taxes 839,790 265,215 2,039,044 2,672,002
Income and mining taxes expense 272,672 90,412 652,718 356,638
Net income for the period $ 567,118 $ 174,803 $ 1,386,326 $ 2,315,364
Net income per share-basic $ 1.13 $ 0.35 $ 2.78 $ 4.76
Net income per share-diluted $ 1.13 $ 0.35 $ 2.77 $ 4.74
Cash flows:
Cash provided by operating activities $ 1,084,532 $ 502,088 $ 2,829,043 $ 1,873,701
Cash used in investing activities $ (537,933) $ (435,666) $ (1,375,557) $ (2,284,613)
Cash (used in) provided by financing activities $ (493,545) $ (144,239) $ (813,813) $ 109,843
Realized prices:
Gold (perounce) $ 2,492 $ 1,928 $ 2,297 $ 1,933
Silver (perounce) $ 30.69 $ 23.55 $ 28.31 $ 23.66
Zinc (pertonne) $ 2,822 $ 2,360 $ 2,697 $ 2,746
Copper (pertonne) $ 8,254 $ 8,223 $ 9,304 $ 8,740
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of UnitedStates dollars, except where noted)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Payable production(v):
Gold (ounces):
Quebec
LaRonde mine 47,313 49,303 161,388 167,471
LaRonde zone 5 mine 18,292 15,193 54,915 53,412
Canadian Malartic(iii) 141,392 177,243 509,169 435,683
Goldex 30,334 35,880 98,472 107,619
Ontario
Detour Lake 173,891 152,762 492,889 483,971
Macassa 70,727 46,792 203,048 167,951
Nunavut
Meliadine 99,838 89,707 284,238 267,856
Meadowbank 133,502 116,555 387,695 322,440
Australia
Fosterville 65,532 59,790 188,064 228,161
Europe
Kittila 56,715 59,408 166,967 173,230
Mexico
Pinos Altos 21,371 25,386 69,850 71,679
CrestonMascota 9 141 50 550
La India 4,529 22,269 21,190 56,423
Total gold (ounces): 863,445 850,429 2,637,935 2,536,446
Silver (thousands of ounces) 602 589 1,845 1,753
Zinc (tonnes) 914 1,420 4,479 6,318
Copper (tonnes) 797 659 2,673 1,935
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of UnitedStates dollars, except where noted)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Payable metal sold(vi):
Gold (ounces):
Quebec
LaRonde mine 58,357 62,413 175,086 172,495
LaRonde zone 5 mine 18,920 17,748 55,436 52,132
Canadian Malartic(iii) 139,694 164,974 475,893 405,040
Goldex 31,671 35,517 99,896 108,548
Ontario
Detour Lake 176,585 149,747 497,215 473,322
Macassa 65,000 44,400 197,840 164,430
Nunavut
Meliadine 83,900 93,426 276,878 262,165
Meadowbank 126,010 108,579 378,123 317,584
Australia
Fosterville 67,198 60,750 187,247 235,250
Europe
Kittila 59,464 58,540 171,448 171,060
Mexico
Pinos Altos 23,700 24,543 69,510 71,134
La India 5,400 22,460 24,620 56,343
Total gold (ounces): 855,899 843,097 2,609,192 2,489,503
Silver (thousands of ounces) 573 571 1,814 1,720
Zinc (tonnes) 1,748 2,108 4,802 6,982
Copper (tonnes) 806 657 2,681 1,938
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of UnitedStates dollars, except where noted)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Total cash costs per ounce -co-product basis(vii):
Quebec
LaRonde mine $ 1,291 $ 1,111 $ 1,180 $ 1,097
LaRonde zone 5 mine 1,300 1,297 1,174 1,220
Canadian Malartic(iii) 1,037 814 918 800
Goldex 1,121 822 1,040 802
Ontario
Detour Lake 784 757 815 755
Macassa 757 843 766 722
Nunavut
Meliadine 890 972 910 977
Meadowbank 918 1,229 930 1,180
Australia
Fosterville 653 497 604 438
Europe
Kittila 1,011 931 1,034 877
Mexico
Pinos Altos 2,023 1,606 1,807 1,512
La India 2,901 1,174 2,009 1,292
Total cash costs per ounce (co-product basis) $ 953 $ 924 $ 930 $ 885
Total cash costs per ounce-by-product basis(vii):
Quebec
LaRonde mine $ 1,078 $ 875 $ 934 $ 850
LaRonde zone 5 mine 1,285 1,287 1,160 1,207
Canadian Malartic(iii) 1,025 805 906 789
Goldex 1,031 822 945 802
Ontario
Detour Lake 779 755 812 752
Macassa 750 841 763 719
Nunavut
Meliadine 889 971 908 975
Meadowbank 910 1,225 923 1,173
Australia
Fosterville 651 495 602 437
Europe
Kittila 1,010 930 1,033 875
Mexico
Pinos Altos 1,531 1,310 1,426 1,236
La India 2,872 1,156 1,963 1,272
Total cash costs per ounce (by-product basis) $ 921 $ 898 $ 897 $ 857
Notes: (i) Certain previously reported line items have been restated to reflect the final purchase price allocation of CanadianMalartic (ii) Operating margin is not a recognized measure underIFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance- Operating Margin for more information on the Company's calculation and use of operating margin (iii) The information set out in this table reflects the Company's 50% interest in CanadianMalartic up to and including March 30, 2023 and 100% interest thereafter (iv) Revaluation gain on the 50% interest the Company owned in CanadianMalartic 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) CanadianMalartic payable metal sold excludes the 5.0% in-kind net smelter return royalty held byOsisko Gold RoyaltiesLtd. Detour Lake payable metal sold excludes the 2.0% in-kind net smelter royalty held by Franco-Nevada CorporationMacassa payable metal sold excludes the 1.5% in-kind net smelter royalty held by Franco-Nevada Corporation (vii) The total cash costs per ounce is not a recognized measure underIFRS and this data may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance - Total Cash Costs per Ounce and Minesite Costs per Tonne for a discussion on the composition and usefulness of these measures and a reconciliation to the most directly comparable financial information prepared in accordance withIFRS
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, 2024 December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents $ 977,215 $ 338,648
Inventories 1,533,064 1,418,941
Income taxes recoverable 19,707 27,602
Fair value of derivative financial instruments 15,742 50,786
Other current assets 361,975 355,175
Total current assets 2,907,703 2,191,152
Non-current assets:
Goodwill 4,157,672 4,157,672
Property, plant and mine development 21,389,861 21,221,905
Investments 512,571 345,257
Deferred income and mining tax asset 18,573 53,796
Other assets 830,109 715,167
Total assets $ 29,816,489 $ 28,684,949
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ 882,039 $ 750,380
Share based liabilities 20,936 24,316
Interest payable 18,505 14,226
Income taxes payable 220,707 81,222
Current portion of long-term debt 415,000 100,000
Reclamation provision 49,721 24,266
Lease obligations 46,347 46,394
Fair value of derivative financial instruments 10,542 7,222
Total current liabilities 1,663,797 1,048,026
Non-current liabilities:
Long-term debt 1,052,233 1,743,086
Reclamation provision 1,116,295 1,049,238
Lease obligations 101,833 115,154
Share based liabilities 10,686 11,153
Deferred income and mining tax liabilities 5,095,753 4,973,271
Other liabilities 270,921 322,106
Total liabilities 9,311,518 9,262,034
EQUITY
Common shares:
Outstanding - 501,907,461 common shares issued, less 390,389 shares held in trust 18,663,351 18,334,869
Stock options 174,657 201,755
Contributed surplus - 22,074
Retained earnings 1,727,379 963,172
Other reserves (60,416) (98,955)
Total equity 20,504,971 19,422,915
Total liabilities and equity $ 29,816,489 $ 28,684,949
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
(thousands of UnitedStates dollars, except per share amounts, IFRS basis)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Restated(i) Restated(i)
REVENUES
Revenues from mining operations $ 2,155,609 $ 1,642,411 $ 6,062,053 $ 4,870,269
COSTS, INCOME AND EXPENSES
Production(ii) 783,653 759,411 2,339,222 2,155,808
Exploration and corporate development 60,335 61,594 166,788 169,784
Amortization of property, plant and mine development 390,245 421,091 1,125,859 1,111,364
General and administrative 48,500 38,930 145,436 134,450
Finance costs 28,527 35,704 99,265 94,989
(Gain) loss on derivative financial instruments (17,153) 34,010 48,390 1,038
Foreign currency translation loss (gain) 3,436 (6,492) (748) (2,258)
Care and maintenance 13,810 12,361 35,078 33,017
Revaluation gain(iii) - - - (1,543,414)
Other expenses 4,466 20,587 63,719 43,489
Income before income and mining taxes 839,790 265,215 2,039,044 2,672,002
Income and mining taxes expense 272,672 90,412 652,718 356,638
Net income for the period $ 567,118 $ 174,803 $ 1,386,326 $ 2,315,364
Net income per share - basic $ 1.13 $ 0.35 $ 2.78 $ 4.76
Net income per share - diluted $ 1.13 $ 0.35 $ 2.77 $ 4.74
Adjusted net income per share - basic(iv) $ 1.14 $ 0.44 $ 2.97 $ 1.66
Adjusted net income per share - diluted(iv) $ 1.14 $ 0.43 $ 2.97 $ 1.65
Weighted average number of common shares outstanding
(inthousands):
Basic 500,974 495,286 499,343 486,131
Diluted 502,106 496,404 500,196 487,442
Notes: (i) Certain previously reported line items have been restated to reflect the final purchase price allocation of theYamana Transaction (ii) Exclusive of amortization, which is shown separately (iii) Revaluation gain on the 50% interest previously owned in CanadianMalartic prior to theYamana Transaction (iv)Adjusted net income per share is not a recognized measure underIFRS and this data may not be comparable to data reported by other companies. SeeNote Regarding Certain Measures of Performance - Adjusted Net Income and Adjusted Net Income per Share for a discussion of the composition and usefulness of this measure and a reconciliation to the nearestIFRS measure
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of UnitedStates dollars, IFRS basis)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2024 2023 2024 2023
Restated(i) Restated(i)
OPERATING ACTIVITIES
Net income for the period $ 567,118 $ 174,803 $ 1,386,326 $ 2,315,364
Add (deduct) adjusting items:
Amortization of property, plant and mine development 390,245 421,091 1,125,859 1,111,364
Revaluation gain(ii) - - - (1,543,414)
Deferred income and mining taxes 58,641 25,123 152,788 66,794
Unrealized (gain) loss on currency and commodity derivatives (24,169) 31,088 38,363 (34,888)
Unrealized (gain) loss on warrants (53) 6,802 (3,903) 9,098
Stock-based compensation 21,242 11,939 58,957 38,466
Foreign currency translation loss (gain) 3,436 (6,492) (748) (2,258)
Other 11,010 4,302 33,144 9,953
Changes in non-cash working capital balances:
Income taxes 95,930 (7,425) 142,732 81,980
Inventories (156,871) (118,251) (165,727) (144,998)
Other current assets 41,263 (3,527) (16,237) (86,947)
Accounts payable and accrued liabilities 80,704 (49,432) 74,622 51,427
Interest payable (3,964) 12,067 2,867 1,760
Cash provided by operating activities 1,084,532 502,088 2,829,043 1,873,701
INVESTING ACTIVITIES
Additions to property, plant and mine development (464,101) (419,832) (1,255,786) (1,228,387)
Yamana transaction, net of cash and cash equivalents - - - (1,000,617)
Contributions for acquisition of mineral assets (4,197) (10,950) (11,296) (10,950)
Purchases of equity securities and other investments (73,341) (7,962) (114,644) (52,126)
Other investing activities 3,706 3,078 6,169 7,467
Cash used in investing activities (537,933) (435,666) (1,375,557) (2,284,613)
FINANCING ACTIVITIES
Proceeds from Credit Facility - 100,000 600,000 1,100,000
Repayment of Credit Facility - (100,000) (600,000) (1,000,000)
Proceeds from Term Loan Facility, net of financing costs - - - 598,958
Repayment of Term Loan Facility (275,000) - (275,000) -
Repayment of Senior Notes (100,000) - (100,000) (100,000)
Long-term debt financing costs - - (3,544) -
Repayment of lease obligations (12,461) (13,465) (38,142) (35,633)
Disbursements to associates - 21,899 - -
Dividends paid (176,314) (161,259) (497,829) (482,680)
Repurchase of common shares (30,080) - (106,121) (16,350)
Proceeds on exercise of stock options 90,923 471 178,735 23,523
Common shares issued 9,387 8,115 28,088 22,025
Cash (used in) provided by financing activities (493,545) (144,239) (813,813) 109,843
Effect of exchange rate changes on cash and cash equivalents 2,172 782 (1,106) (2,065)
Net increase (decrease) in cash and cash equivalents during the period 55,226 (77,035) 638,567 (303,134)
Cash and cash equivalents, beginning of period 921,989 432,526 338,648 658,625
Cash and cash equivalents, end of period $ 977,215 $ 355,491 $ 977,215 $ 355,491
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid $ 26,870 $ 16,621 $ 76,773 $ 73,109
Income and mining taxes paid $ 119,178 $ 67,904 $ 377,555 $ 207,669
Notes: (i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Yamana Transaction. (ii) Revaluation gain on the 50% interest the Company previously owned in Canadian Malartic prior to the Yamana Transaction.
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SOURCE Agnico Eagle Mines Limited
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COMTEX_459302565/1005/2024-10-30T17:00:32