UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2023
Commission File Number 001-13422
AGNICO EAGLE MINES LIMITED
(Translation of registrant’s name into English)
145
King Street East, Suite 400, Toronto, Ontario M5C 2Y7
(Address of principal executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101 (b)( 1): ¨
Note:
Regulation S-T Rule 101 (b)( 1) only permits the submission in paper of a Form 6-K if submitted solely to provide
an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101 (b)(7): ¨
Note:
Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report
or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which
the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of
the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press
release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material
event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate
by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information
to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82- .
EXHIBITS
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
AGNICO
EAGLE MINES LIMITED |
|
(Registrant) |
|
|
Date:
07/28/2023 |
By: |
/s/ Chris Vollmershausen |
|
|
Chris Vollmershausen |
|
|
Executive Vice-President, Legal, General Counsel &
Corporate Secretary |
Exhibit 99.1
Stock
Symbol: |
AEM (NYSE
and TSX) |
|
|
For
further information: |
Investor Relations |
|
(416) 947-1212 |
(All amounts
expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE
REPORTS SECOND QUARTER 2023 RESULTS – RECORD QUARTERLY GOLD PRODUCTION AND SOLID COST PERFORMANCE DRIVE STRONG QUARTERLY EARNINGS
AND OPERATING CASH FLOW; WELL POSITIONED TO ACHIEVE ANNUAL PRODUCTION AND COST GUIDANCE
Toronto (July 26, 2023) –
Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and
operating results for the second quarter of 2023.
"Agnico Eagle
delivered another strong operational quarter, with record quarterly gold production and better than expected costs driving solid financial
results. With this excellent start to the year, we are tracking very well to meet our annual production and cost guidance. I would also
like to commend our team for one of the best quarterly safety performances in the Company's history," said Ammar Al-Joundi, Agnico
Eagle's President and Chief Executive Officer. "In June we released an update on the Odyssey project at Canadian Malartic,
which highlighted an improved production profile, a mine life extension to 2042 and a significant geological upside. We continue to advance
the various studies of our key pipeline projects in the Abitibi Gold Belt, with the objective of leveraging our existing infrastructure
and generating value for our shareholders. We expect to report the results of these ongoing studies through the first half of 2024. Finally,
in the second quarter, we had strong exploration results from Detour, Meliadine, Kittila and at Hope Bay, with the intersection of higher
grade mineralization at the Madrid deposit," added Mr. Al-Joundi.
Second quarter
2023 highlights
| · | Record
quarterly gold production and solid cost performance – Record quarterly gold production
reflects 100% ownership of Canadian Malartic for the full quarter, combined with a strong
operational performance at all producing sites. Payable gold production1 in the
second quarter of 2023 was 873,204 ounces at production costs per ounce of $851, total cash
costs per ounce2 of $840 and all-in sustaining costs ("AISC") per ounce3
of $1,150 |
1 Payable production of a mineral
means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether
such products are shipped during the period or held as inventory at the end of the period.
2 Total cash costs per ounce is a
non-GAAP ratio that is not a standardized financial measure under IFRS and, unless otherwise specified, is reported on a by-product basis
in this news release. For the detailed calculation of production costs per ounce, the reconciliation of total cash costs to production
costs and information about total cash costs per once on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures"
below. See also "Note Regarding Certain Measures of Performance".
3 AISC
per ounce is a non-GAAP ratio that is not a standardized financial measure under the IFRS and, unless otherwise specified, is reported
on a by-product basis in this news release. For a reconciliation to production costs and for all-in sustaining costs on a co-product
basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
| · | Operational
performance drives strong quarterly financial results – The Company reported quarterly
net income of $0.66 per share in the second quarter of 2023, with adjusted net income4
of $0.65 per share. Operating cash flow was $1.46 per share |
| · | Strong
operating and safety performance at all mine sites – Gold production and costs
in the second quarter of 2023 were better than anticipated, reflecting strong operating performance
across the Company's mines, despite the challenges related to wildfires in northern Ontario
and Quebec and the caribou migration in Nunavut. Lower than expected costs reflect a strong
operating performance, favourable foreign exchange rates and the easing of certain inflationary
pressures |
| · | Important
milestones achieved across the portfolio – At the Canadian Malartic complex, the
team celebrated production of its seventh million ounce in June. In addition, Detour Lake,
Goldex and Macassa each achieved record quarterly mill throughput rates, while Meliadine
recorded its best ever monthly mill throughput in May 2023 |
| · | Gold
production, cost and capital expenditure guidance reiterated for 2023 – Expected
payable gold production in 2023 remains unchanged at approximately 3.24 to 3.44 million ounces
with total cash costs per ounce expected to be between $840 and $890 and AISC per ounce expected
to be between $1,140 and $1,190. Total capital expenditures (excluding capitalized exploration)
for 2023 are still estimated to be approximately $1.42 billion. The Company's 2023 production
guidance assumes Kittila operates at an annual rate of 1.6 million tonnes per annum ("Mtpa").
A decision by the Supreme Court of Finland (the "SAC") to either maintain the 1.6
Mtpa permit or revert to the 2.0 Mtpa permit is expected in the third quarter of 2023 |
| · | Solid
cash flow generation strengthens the Company's balance sheet and liquidity position –
During the second quarter of 2023, the Company repaid $900 million of the amounts drawn on
its unsecured revolving bank credit facility. The amount repaid on the unsecured revolving
bank credit facility was repaid using $300 million in cash on hand and $600 million drawn
on an unsecured term loan facility (the "Term Loan Facility") which the Company
entered into in the quarter. Additionally on June 30, 2023, the Company repaid the $100
million 4.54% Series A senior notes at maturity. As at June 30, 2023, the Company's
long term debt was $1,942.0 million and its net debt5 was $1,509.5 million. |
4 Adjusted
net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under IFRS. For a reconciliation
to net income and net income per share see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding
Certain Measures of Performance".
5 Net debt is a non-GAAP measure that
is not a standardized measure under IFRS. For a reconciliation to long-term debt, see "Reconciliation of non-GAAP Financial Performance
Measures" below. See also "Note Regarding Certain Measures of Performance".
| • | Update
on key value drivers and pipeline projects |
| • | Odyssey
mine at the Canadian Malartic complex – In June 2023, the Company released
the results of a new internal study reflecting significant project advancements, an improved
valuation and opportunities to further enhance value (see the news release dated June 20,
2023). Shaft sinking activities ramped up through the quarter, with approximately 60 metres
sunk as at June 30, 2023. Production via the ramp at the Odyssey South deposit increased
through the quarter and remains on schedule to reach a planned rate of 3,500 tonnes per day
("tpd") in 2024. Drilling activities focused on infilling the internal zones at
the Odyssey South deposit and mineral resource expansion of the East Gouldie deposit to the
east and west |
| • | Detour
Lake – In the second quarter of 2023, the mill set a record for quarterly throughput,
with an improved mill availability of 92.8%. The continued focus on mill process optimization
and mill availability is tracking well to reach and potentially exceed, throughput of 28.0
Mtpa. The Company is advancing the underground mining scenario study based on a revised mineral
resource model and expects to report the results of this study in the first half of 2024 |
| · | Optimization
of assets and infrastructure in the Abitibi Gold Belt – The Company continued to
advance several internal evaluations to assess potential production opportunities at the
Macassa Near Surface and the Amalgamated Kirkland ("AK") deposits, and at the Upper
Beaver and Wasamac projects. These evaluations include an assessment of ore transportation
via rail or truck to the Company's existing processing facilities in the region, with a goal
of increasing future gold production at lower capital costs and with a reduced environmental
footprint. The results of these evaluations are expected to be reported in the first half
of 2024 |
| · | Positive
exploration results at Detour, Meliadine, Kittila and Hope Bay |
| · | Based
on exploration success in the first half of 2023, a supplemental exploration budget of $32
million has been approved – The Company's exploration program returned positive
results in the first half of 2023 at several key operating sites and projects, showing excellent
potential to identify additional mineral resources and replace mineral reserves. These results
support the focused addition of supplemental budgets.
An update on selected exploration programs and budgets is set out in the sections below |
| · | Detour
– Drilling continues to investigate the deposit below the West Pit mineral reserve
and the western plunge extension of the mineralization to confirm the mineralized zones potentially
amenable to underground mining. Drill results below the West pit reserve continue to demonstrate
potential for a higher grade envelope with a recent intercept yielding 12.9 grams per tonne
("g/t") gold over 12.9 metres at 400 metres depth, while two kilometres west of
the open pit mineral reserves mineralization remains open with a recent intercept returning
2.8 g/t gold over 14.4 metres at 1,061 metres depth |
| · | Meliadine
– Drilling continues to investigate the vertical extensions of the mineralized
zones in the central part of the Tiriganiaq, Wesmeg and Wesmeg North deposits. At Wesmeg
North, a recent intercept yielded 6.3 g/t gold over 7.4 metres at 558 metres depth. Approximately
1.5 kilometres southeast of Tiriganiaq at the F-Zone deposit, a recent intercept yielded
6.4 g/t gold over 16.0 metres at 167 metres depth in the upper portion of the deposit |
| · | Kittila
– Drilling has extended the Rimpi Main Zone to the north, outside of the current
mineral resources, with a recent intercept yielding 7.2 g/t gold over 4.5 metres at 1,102
metres depth. In the Roura area close to the shaft bottom, a recent intercept in the Main
Zone yielded 7.7 g/t gold over 7.3 metres at 1,152 metres depth. At shallow depth in the
Rimpi area, the Parallel / Sisar Zone was identified in an area that has received limited
drilling to date, yielding 3.1 g/t gold over 4.5 metres at 142 metres depth and opening a
new near-surface target area for future exploration |
| · | Hope
Bay project – A total of nine exploration drill rigs were operating at the Doris
and Madrid deposits and regionally during the second quarter. At Doris, drilling in the BCO
Zone continued to return good grades and thicknesses to further confirm the potential to
expand the zone along strike. At Madrid, drilling focused on a two-kilometre long, previously
untested gap between the Suluk and Patch 7 zones, with new highlight intercepts of 10.0 g/t
gold over 14.0 metres at 677 metres depth and 13.7 g/t gold over 4.6 metres at 697 metres
depth. This drilling confirms the potential of Madrid/Suluk/Patch 7 as it extends the high-grade
Patch 7 Zone by 500 metres vertically and by 900 metres laterally at depth |
| · | A
quarterly dividend of $0.40 per share has been declared |
Second Quarter 2023 Results Conference
Call and Webcast Tomorrow
Agnico Eagle's
senior management will host a conference call on Thursday, July 27, 2023 at 11:00 AM (E.D.T.) to discuss the Company's
second quarter 2023 financial and operating results.
Via Webcast:
A live audio webcast
of the conference call will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring
to listen by telephone, please dial 1-416-764-8659 or toll-free 1-888-664-6392. To ensure your participation, please call approximately
five minutes prior to the scheduled start of the call.
Via URL Entry:
To join the conference
call without operator assistance, you may register and enter your phone number at https://bit.ly/3CqLElb to receive an instant
automated call back.
Replay Archive:
Please dial 1-416-764-8677
or toll-free 1-888-390-0541, access code 008251#. The conference call replay will expire on August 27, 2023.
The webcast, along
with presentation slides, will be archived for 180 days on the Company's website.
Second Quarter 2023 Financial and
Production Results
In the second quarter
of 2023, net income was $326.8 million ($0.66 per share). This result includes the following items (net of tax): derivative gains on
financial instruments of $20.1 million ($0.04 per share), a non-cash fair value adjustment on inventory sold during the quarter related
to the acquisition of the remaining 50% of Canadian Malartic included in production costs of $13.7 million ($0.03 per share), foreign
currency translation gains on deferred tax liabilities of $9.6 million ($0.02 per share), non-cash foreign currency translation
losses of $4.0 million ($0.01 per share) and various other adjustment losses of $7.5 million ($0.01 per share).
Excluding the above
items results in adjusted net income of $322.4 million or $0.65 per share for the second quarter of 2023. For the second quarter of 2022,
the Company reported net income of $290.4 million ($0.64 per share).
Included in the
second quarter of 2023 net income, and not adjusted above, is a non-cash stock option expense of $2.5 million ($0.01 per share).
In the first six
months of 2023, the Company reported net income of $2,143.7 million ($4.45 per share) compared to the first six months of 2022,
when net income was $409.5 million ($0.97 per share).
The increase in
net income in the second quarter of 2023 compared to the prior-year period is due to a gain on derivative financial instruments, higher
mine operating margins6 from higher sales volumes resulting from the acquisition of the remaining 50% of Canadian Malartic
and lower income and mining tax expenses, partially offset by higher amortization.
The increase in
net income in the first six months of 2023 is primarily due to a remeasurement gain resulting from the application of purchase accounting
relating to a business combination attained in stages, which requires the remeasurement of the Company's previously held 50% interest
in the Canadian Malartic complex to fair value. The fair value of the Company's previously held 50% interest and the resulting gain on
remeasurement, along with the fair values allocated to assets acquired and liabilities assumed are preliminary, and are subject to adjustment
based on further analysis and evaluation over the course of the measurement period which may not exceed 12 months from the acquisition
date.
In the second quarter
of 2023, cash provided by operating activities was $722.0 million ($693.0 million before changes in non-cash components of working capital),
compared to the second quarter of 2022 when cash provided by operating activities was $633.3 million ($706.0 million before
changes in non-cash components of working capital). Cash provided by operating activities (before changes in non-cash components of working
capital) was slightly lower in the second quarter of 2023 when compared to the prior-year period as higher revenues from higher sales
volumes and metals prices was more than offset by higher production costs and higher financing costs.
In the first six
months of 2023, cash provided by operating activities was $1,371.6 million ($1,301.8 million before changes in non-cash components
of working capital), compared to the first six months of 2022 when cash provided by operating activities was $1,140.7 million ($1,072.0 million
before changes in non-cash components of working capital). Cash provided by operating activities (before changes in non-cash components
of working capital) increased when compared to the prior-year period primarily due to higher sales volumes from a full six months contribution
in 2023 from the Detour Lake, Macassa and Fosterville mines as opposed to 149 days in the first six months of 2022 following the closing
of the merger (the "Merger") with Kirkland Lake Gold Ltd. and higher sales volumes from the acquisition of the remaining 50%
of the Canadian Malartic complex.
6 Operating margin is a non-GAAP measure
that is not a standardized measure under IFRS. For a reconciliation to net income see "Reconciliation of Non-GAAP Financial Performance
Measures" below. See also "Note Regarding Certain Measures of Performance".
In the second quarter
of 2023, the Company's payable gold production was a record 873,204 ounces. This compares to quarterly payable gold production of 858,170
ounces in the prior-year period as the additional production from the acquisition of the remaining 50% of the Canadian Malartic complex
was partially offset by lower production at the Detour Lake and LaRonde mines.
In the first six
months of 2023, the Company's payable gold production was 1,686,017 ounces compared to the first six months of 2022 when payable gold
production was 1,518,774 ounces. The increase in payable gold production is a result of additional days of production in 2023 at the
Detour Lake, Macassa and Fosterville mines as described above and the additional production from the acquisition of the remaining 50%
of the Canadian Malartic complex, partially offset by lower production at the Detour Lake and LaRonde mines.
In the second quarter
of 2023, production costs per ounce were $851, compared to $766 in the prior-year period and total cash costs per ounce were $840, compared
to $726 in the prior-year period. Production costs per ounce increased when compared to the prior-year period primarily due to higher
minesite costs per tonne related to inflation. A detailed description of the minesite costs per tonne at each mine is set out below.
Total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne related
to inflation, higher royalties resulting from the acquisition of the remaining 50% of the Canadian Malartic complex and a lower fair
value adjustment impacting inventory in the second quarter of 2023.
In the first six
months of 2023, production costs per ounce were $828, compared to $869 in the prior-year period and total cash costs per ounce were $836,
compared to $763 in the prior-year period. Production costs per ounce decreased when compared to the prior-year period primarily due
to the increase in payable gold production during the period. Total cash costs per ounce increased when compared to the prior-year period
primarily due to the lower fair value adjustment impacting inventory in the current year.
In the second quarter
of 2023, AISC per ounce were $1,150, compared to $1,026 in the prior-year period. AISC per ounce increased in the second quarter of 2023
when compared to the prior-year period primarily due to the same reasons that caused higher total cash costs per ounce.
In the first six
months of 2023, AISC per ounce were $1,138, compared to $1,051 in the prior-year period. AISC per ounce increased when compared to the
prior-year period primarily due to the same reasons that caused higher total cash costs and higher sustaining capital expenditures per
ounce.
Solid Cash Flow
Generation Continues to Support Investment Grade Balance Sheet; Financial Flexibility Strengthened with Increased Liquidity
With the strong
cash-flow generation during the second quarter, the Company used cash on hand to repay $300 million of the $1.0 billion drawn from its
unsecured revolving bank credit facility used to fund the cash consideration paid in connection with the acquisition of Yamana's Canadian
assets on March 31, 2023 (the "Yamana Transaction"). On April 20, 2023, the Company entered into a credit agreement
with a group of financial institutions that provides the $600 million Term Loan Facility. The Company drew down in full on the Term Loan
Facility on April 28, 2023 and used the proceeds to partially repay the amounts drawn on the unsecured revolving bank credit facility.
The Term Loan Facility matures and all indebtedness thereunder is due and payable on April 21, 2025. The Term Loan Facility is available
as a single advance in US dollars through SOFR and base rate advances, priced at the applicable rate plus a margin that ranges from 0.00%
to 2.00% depending on the Company's credit rating. The Term Loan Facility may be prepaid without penalty.
As of June 30,
2023, the outstanding balance on the Company's unsecured revolving bank credit facility was $100 million, and available liquidity under
this facility was approximately $1.1 billion, not including the uncommitted $600 million accordion feature. Additionally on June 30,
2023, the Company repaid out of available cash the $100 million 4.54% Series A senior notes at maturity, further reducing the Company's
indebtedness.
Cash and cash equivalents
decreased to $432.5 million at June 30, 2023, from the March 31, 2023 balance of $744.6 million, primarily due to debt
repayment, partially offset by higher cash flow from operations (higher sales volumes and realized gold prices). At June 30, 2023
the Company's long term debt was $1,942.0 million and net debt decreased to $1,509.5 million from the March 31, 2023 balance of
$1,597.9 million.
On April 7,
2023, Moody's upgraded its credit rating outlook for the Company to "positive" from "stable", while affirming the
credit rating at Baa2. On June 20, 2023, Fitch Ratings affirmed its credit rating for Agnico Eagle at BBB+ with a Stable Outlook.
These investment grade credit ratings reflect the Company's strong business and credit profile, while maintaining low leverage and conservative
financial policies and recognizing the benefits of the Company's size and scale and operations in favourable mining jurisdictions.
In May 2023,
the Company received approval from the TSX to renew its normal course issuer bid ("NCIB") pursuant to which the Company is
permitted to purchase up to the lesser of (i) 5% of its issued and outstanding common shares and (ii) the number of common
shares that may be purchased by the Company for an aggregate purchase price, excluding commissions, of $500.0 million. Purchases under
the NCIB may continue for up to one year from the commencement date of May 4, 2023. Purchases under the NCIB will be made through
the facilities of the TSX, the NYSE or other designated exchanges and alternative trading systems in Canada and the United States in
accordance with applicable regulatory requirements. All common shares purchased under the NCIB will be cancelled.
Agnico Eagle believes
that the NCIB provides a flexible tool as part the Company's overall capital allocation program and objectives and generates value for
shareholders. In the second quarter of 2023, no purchases were made under the NCIB.
Approximately 55%
of the Company's estimated Canadian dollar exposure for the remainder of the year is hedged at an average floor price above 1.32 C$/US$.
Approximately 29% of the Company's estimated Euro exposure for the remainder of the year is hedged at an average floor price of approximately
1.03 US$/EUR. Approximately 58% of the Company's estimated Australian dollar exposure for the remainder of the year is hedged at an average
floor price above 1.45 A$/US$. Approximately 33% of the Company's estimated Mexican peso exposure for the remainder of the year is hedged
at an average floor price above 20.70 MXP/US$. The Company's full year 2023 cost guidance is based on assumed exchange rates of 1.32
C$/US$, 1.10 US$/EUR, 1.40 A$/US$ and 20.00 MXP/US$.
With the completion
of the initial diesel purchase for the Company's Nunavut operations on the 2023 sealift, approximately 64% of the Company's diesel exposure
for the remainder of the year is hedged at an average price of $0.69 per litre, compared to the 2023 cost guidance assumption of $0.93
per litre. The sea-lift purchase, along with financial hedges, will continue to help mitigate operating cost risks and they are expected
to provide protection against diesel price inflation for the remainder of the year.
The Company will
continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges
to strategically support its key input costs. Current hedging positions are not factored into 2023 and future guidance.
Capital Expenditures
In the second quarter
of 2023, capital expenditures were $382.4 million and capitalized exploration expenditures were $33.6 million, for a total of $416.0
million. Total expected capital expenditures (including capitalized exploration) remain in line with guidance for the full year 2023.
The following table
sets out capital expenditures (including sustaining capital expenditures7 and development capital expenditures7)
and capitalized exploration in the second quarter of 2023.
7 Sustaining capital expenditures
and development capital expenditures are non-GAAP measures that are not standardized financial measures under IFRS. See "Note Regarding
Certain Measures of Performance" and "Reconciliation of Non-GAAP Performance Measures – Reconciliation of Sustaining Capital Expenditures
to Consolidated Statements of Cash Flow".
Capital Expenditures | |
(In thousands of U.S. dollars) | |
| |
Capital
Expenditures* | | |
Capitalized
Exploration | |
| |
Three Months Ended | | |
Six Months Ended | | |
Three Months Ended | | |
Six Months Ended | |
| |
June 30,
2023 | | |
June 30,
2023 | | |
June 30,
2023 | | |
June 30,
2023 | |
Sustaining
Capital Expenditures | |
| | | |
| | | |
| | | |
| | |
LaRonde complex | |
| 19,788 | | |
| 35,527 | | |
| 641 | | |
| 896 | |
Canadian Malartic complex | |
| 34,086 | | |
| 50,670 | | |
| — | | |
| — | |
Goldex mine | |
| 3,428 | | |
| 8,166 | | |
| 210 | | |
| 294 | |
Detour Lake mine | |
| 60,678 | | |
| 113,962 | | |
| — | | |
| — | |
Macassa mine | |
| 8,646 | | |
| 15,036 | | |
| 250 | | |
| 508 | |
Meliadine mine | |
| 13,839 | | |
| 26,916 | | |
| 1,865 | | |
| 3,874 | |
Meadowbank complex | |
| 35,624 | | |
| 71,255 | | |
| — | | |
| — | |
Hope Bay project | |
| 145 | | |
| 147 | | |
| — | | |
| — | |
Fosterville mine | |
| 7,252 | | |
| 14,921 | | |
| 46 | | |
| 346 | |
Kittila mine | |
| 12,310 | | |
| 21,220 | | |
| (352 | ) | |
| 1,073 | |
Pinos Altos mine | |
| 8,062 | | |
| 16,059 | | |
| 345 | | |
| 598 | |
La India mine | |
| 45 | | |
| 71 | | |
| 6 | | |
| 6 | |
Total Sustaining Capital | |
$ | 203,903 | | |
$ | 373,950 | | |
$ | 3,011 | | |
$ | 7,595 | |
| |
| | | |
| | | |
| | | |
| | |
Development
Capital Expenditures | |
| | | |
| | | |
| | | |
| | |
LaRonde complex | |
| 17,813 | | |
| 33,107 | | |
| — | | |
| — | |
Canadian Malartic complex | |
| 46,548 | | |
| 76,366 | | |
| 2,370 | | |
| 3,573 | |
Goldex mine | |
| 8,064 | | |
| 16,075 | | |
| 774 | | |
| 2,052 | |
Akasaba West project | |
| 8,706 | | |
| | | |
| — | | |
| | |
Detour Lake mine | |
| 24,775 | | |
| 47,383 | | |
| 8,815 | | |
| 17,282 | |
Macassa mine | |
| 16,108 | | |
| 37,158 | | |
| 7,552 | | |
| 14,915 | |
Meliadine mine | |
| 33,622 | | |
| 49,695 | | |
| 3,652 | | |
| 5,459 | |
Amaruq underground project | |
| (21 | ) | |
| 310 | | |
| — | | |
| — | |
Hope Bay project | |
| 2,724 | | |
| 3,199 | | |
| — | | |
| — | |
Fosterville mine | |
| 8,573 | | |
| 11,714 | | |
| 4,727 | | |
| 10,690 | |
Kittila mine | |
| 8,353 | | |
| 19,049 | | |
| 2,193 | | |
| 2,193 | |
Pinos Altos mine | |
| 1,175 | | |
| 3,374 | | |
| 518 | | |
| 1,112 | |
Other | |
| 2,092 | | |
| 2,455 | | |
| — | | |
| — | |
Total Development Capital | |
$ | 178,532 | | |
$ | 318,960 | | |
$ | 30,601 | | |
$ | 57,276 | |
Total Capital Expenditures | |
$ | 382,435 | | |
$ | 692,910 | | |
$ | 33,612 | | |
$ | 64,871 | |
* Excludes capitalized exploration
2023 Guidance
Unchanged
The Company is
on track to meet its 2023 gold production guidance of between 3.24 and 3.44 million ounces, which is based on the assumption that the
Kittila mill operates at an annual rate of 1.6 Mtpa. Through the first half of 2023, Kittila has maintained operational flexibility to
process 2.0 Mtpa in 2023. The SAC is expected to provide its final decision on Kittila's operating permit in the third quarter of 2023.
If the SAC reverses the lower court ruling and reinstates the operating permit at 2.0 Mtpa, then the Company expects Kittila to produce
up to 30,000 ounces of additional gold in the second half of 2023 as compared to the current guidance, however, the Company can provide
no assurance that the SAC will reverse the lower court decision. If the SAC upholds the lower court decision and maintains the current
operating permit of 1.6 Mtpa, the Company would be required to scale back operations during the fourth quarter of 2023 to remain within
the permitted annual rate.
The Company is
also on track to meet its 2023 guidance for total cash costs per ounce and AISC per ounce of between $840 and $890 and between $1,140
and $1,190, respectively. Total expected capital expenditures (excluding capitalized exploration) for 2023 remain at approximately $1.42
billion.
The closing of
the Yamana Transaction on March 31, 2023 resulted in a remeasurement of the Company's previously-held 50% ownership of Canadian
Malartic. This remeasurement will continue to affect the Company's depreciation and amortization for the remainder of the year as 100%
of the assets are re-measured to fair value. The 2023 depreciation and amortization expense guidance is now expected to be between $1.50
to $1.55 billion for the full year 2023 (versus previous guidance of $1.36 and $1.41 billion).
Update on Key
Value Drivers and Pipeline Projects
Highlights on the
key value drivers (Odyssey mine, Detour Lake mine and optimization of assets and infrastructure in the Abitibi region of Quebec), the
Hope Bay project and the San Nicolás project are set out below. Details on certain mine expansion projects (Macassa shaft and
new ventilation system, Kittila shaft, Meliadine Phase 2 and Amaruq underground) are set out in the applicable operational sections of
this news release.
Odyssey Project
The Company released
the results of a new internal study on the Odyssey project (the "2023 Odyssey Study") in June 2023, reflecting significant
project advancements and the new economic environment (refer to the news release dated June 20, 2023). The forecast parameters for
the 2023 Odyssey Study include inferred mineral resources that are too speculative geologically to have economic considerations applied
to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will
be realized. Key highlights of the 2023 Odyssey Study and work completed in the second quarter of 2023 include:
| · | Approximately
60% of the surface construction has been completed with approximately $429 million spent
on construction and development activities through June 30, 2023 |
| · | As
at June 30, 2023, approximately 60 metres of the shaft had been sunk, with approximately
50 metres of that concrete-lined. Shaft sinking activities increased through the quarter,
with the ongoing commissioning of shaft sinking equipment |
| · | Production
via the ramp from Odyssey South totaled 6,750 ounces of gold for the second quarter of 2023.
The commissioning of the paste plant is expected to be completed in the third quarter 2023,
which will facilitate the production ramp-up to the design rate of 3,500 tpd in 2024 |
| · | The
extraction of the first stope at Odyssey South in the second quarter of 2023 has shown positive
reconciliation with respect to tonnes and gold grade, reflecting the potential contribution
from internal zones. The Company continues to drill to better identify the internal zones
that have the potential to improve the production profile at Odyssey South. The production
levels below level 36 have been redesigned to capture the potential mining recovery of these
zones |
| · | The
next phase of surface construction and underground mine development is on schedule, with
a focus on initiating production from East Gouldie via ramp and shaft in 2027. The main hoist
building is expected to be completed in 2025, while the ore silo, the second phase of the
paste plant, the shaft sinking and the first loading pocket at mid shaft are expected to
be completed in 2027 |
| · | Confidence
in the mine plan improved, with approximately 53% of mineable gold ounces now categorized
as indicated mineral resources compared to approximately 5% in the internal study completed
in 2020 (the "2020 Odyssey Study") |
| · | The
larger mineable mineral resource extended the mine life to 2042 and increased the forecast
gold production for the Odyssey mine by 23%, or 1.7 million ounces of gold, compared to the
2020 Odyssey Study |
| · | Capital
expenditures and operating cost estimates were updated to reflect the current inflationary
environment |
| · | The
larger mineable mineral resource, construction progress and current higher gold price environment
more than offset anticipated cost inflation and contributed to an increase in project value
when compared to the 2020 Odyssey Study. Using a gold price assumption of $1,650 per ounce
and a C$/US$ foreign exchange rate assumption of 1.32, the Odyssey mine has an after-tax
IRR of 24% and an after-tax NPV (at a 5% discount rate) of $1.60 billion. At current gold
prices of approximately $1,950 per ounce, the after-tax IRR and NPV are approximately 33%
and $2.46 billion, respectively |
The
Company believes the potential for further conversion of inferred mineral resources at Odyssey is significant and is expected to add
mine life and continue to increase value. Up to 16 drill rigs were active on the Canadian Malartic property during the second quarter,
including: five underground drills in the Odyssey South and internal zones; four surface drills focused on expanding and infilling the
East Gouldie mineralization; four drill rigs investigating new regional targets around the Odyssey mine and Canadian Malartic mines;
and three drill rigs investigating near-surface targets at the Camflo property, located 4.0 kilometres northeast of the Odyssey mine
infrastructure, where a first phase of 60 drill holes was completed early in the second quarter.
During
the second quarter of 2023, 32,285 metres of capitalized and expensed drilling were completed. Drilling targeted several areas that are
part of the Odyssey mine, including the infill of the East Gouldie deposit from surface, and of the Odyssey South and Odyssey internal
zones from the exploration ramp.
Exploration
drilling also continued to investigate the broader East Gouldie mineralized zone and extended the zone laterally to the east and to the
west. Regional exploration drilling totaled 3,000 metres during the second quarter, with work resuming on the Rand Malartic property
to test the extension of the Odyssey mine's different zones and the launch at quarter-end of the Phase 2 drilling program around the
Camflo mine to further investigate its near-surface potential.
Detour Lake
Mine
In the second quarter
of 2023, the Detour Lake mine established a new quarterly record for mill throughput (74,725 tpd), reflecting an improved mill availability
of 92.8% and a continued effort to optimize mill processes. The Company is advancing several projects to improve runtime and sustain
throughput of 28.0 Mtpa. Areas of focus include modifications to the 610 re-feed chutes, improvements to secondary crusher liner profiles
to extend wear life and optimization of the secondary crusher.
The Company is
also assessing several projects to potentially exceed the mill throughput of 28.0 Mtpa, including ore sorting and the implementation
of advanced process control utilizing artificial intelligence or expert systems. Building on positive results in 2022, the Company initiated
an ore sorting pilot test with the objective to process approximately 1.5 million tonnes of low-grade material to establish the key design
criteria of a full-size sorting plant. The pilot project will also help determine the economic viability of a full-size sorting operation
at Detour Lake.
Ten drill rigs
were active in exploration drilling at Detour Lake during the second quarter of 2023, completing 63,326
metres of drilling for a total of 128,539 metres completed during the first six months of 2023.
Drilling during
the second quarter targeted specific gold mineralized horizons within and below the West Pit mineral reserve to examine gold continuity
between existing drill holes, and targeted the western plunge extension of the open-pit mineralization to firm up the mineralized zones
potentially amenable to underground mining, with the following highlights:
| · | Close
to the open pit mineral reserves, hole DLM23-632 returned 2.5 g/t gold over 11.4 metres at
309 metres depth, 12.9 g/t gold over 12.9 metres at 400 metres depth and 1.0 g/t gold over
57.4 metres at 436 metres depth |
| · | In
the western extension of the open pit mineral resources, hole DLM23-654A returned 2.7 g/t
gold over 14.9 metres at 424 metres depth, 7.6 g/t gold over 2.7 metres at 521 metres depth
and 2.5 g/t gold over 16.1 metres at 573 metres depth |
| · | Almost
two kilometres west of the open pit mineral reserves, hole DLM23-665 returned 2.8 g/t gold
over 14.4 metres at 1,061 metres depth, further demonstrating the continuity of gold mineralization
along the main Detour horizon past the current area identified for underground mining potential.
The "out-pit" mineralization extends more than 2.4 kilometres west of the current
mineral resource pit outline |
Additional selected
results from the second quarter drilling at Detour Lake are provided in the plan map, composite longitudinal section and table below.
With the ongoing
exploration drilling success at Detour Lake, the Company has approved a supplemental exploration budget of $5.2 million for an additional
35,000 metres of drilling at Detour Lake during the remainder of 2023. This additional drilling is expected to accelerate the identification
of underground mineral resources in the western pit extension. The previous budget at Detour Lake for the full year 2023 was comprised
of $33 million for 171,000 metres of expensed and capitalized drilling.
With continued
positive drilling results in the higher grade zones investigated for underground mining potential, the Company has decided to integrate
additional drill data from the first half of 2023 into a maiden underground mineral resource model that will be used to evaluate potential
underground mining scenarios. Results of an internal evaluation of the underground mining potential are now expected to be reported in
the first half of 2024.
[Detour Lake
– Plan Map and Composite Longitudinal Section]
Recent selected exploration drill
results from West Pit and West Pit Extension zones at Detour Lake
Drill hole | |
Zone | |
From (metres) | | |
To (metres) | | |
Depth of midpoint below surface (metres) | | |
Estimated true width (metres) | | |
Gold grade (g/t) (uncapped) | |
DLM23-598W | |
West Pit | |
| 1,169.0 | | |
| 1,181.0 | | |
| 964 | | |
| 11.3 | | |
| 3.3 | |
DLM23-604 | |
West Pit | |
| 268.0 | | |
| 287.0 | | |
| 250 | | |
| 15.1 | | |
| 3.8 | |
and | |
West Pit | |
| 304.8 | | |
| 339.0 | | |
| 289 | | |
| 27.5 | | |
| 1.9 | |
and | |
West Pit | |
| 538.0 | | |
| 564.0 | | |
| 487 | | |
| 21.8 | | |
| 2.0 | |
and | |
West Pit | |
| 604.0 | | |
| 607.0 | | |
| 533 | | |
| 2.5 | | |
| 9.9 | |
DLM23-612 | |
West Pit | |
| 616.0 | | |
| 676.0 | | |
| 538 | | |
| 53.4 | | |
| 1.4 | |
including | |
| |
| 625.0 | | |
| 644.0 | | |
| 529 | | |
| 16.9 | | |
| 2.8 | |
and | |
West Pit | |
| 696.1 | | |
| 744.7 | | |
| 596 | | |
| 43.5 | | |
| 1.5 | |
DLM23-616 | |
West Pit | |
| 599.0 | | |
| 625.2 | | |
| 439 | | |
| 25.3 | | |
| 2.9 | |
and | |
West Pit | |
| 656.0 | | |
| 677.0 | | |
| 474 | | |
| 20.3 | | |
| 3.2 | |
DLM23-620 | |
West Pit Extension | |
| 495.0 | | |
| 498.0 | | |
| 445 | | |
| 2.5 | | |
| 81.4 | |
and | |
West Pit Extension | |
| 737.0 | | |
| 743.8 | | |
| 647 | | |
| 6.0 | | |
| 3.2 | |
DLM23-628 | |
West Pit | |
| 26.2 | | |
| 43.0 | | |
| 29 | | |
| 14.2 | | |
| 6.8 | |
including | |
| |
| 26.2 | | |
| 29.8 | | |
| 24 | | |
| 3.0 | | |
| 30.6 | |
DLM23-629 | |
West Pit | |
| 306.0 | | |
| 374.0 | | |
| 279 | | |
| 60.7 | | |
| 7.2 | |
including | |
| |
| 316.0 | | |
| 319.0 | | |
| 262 | | |
| 2.7 | | |
| 137.0 | |
and | |
West Pit | |
| 467.0 | | |
| 504.0 | | |
| 392 | | |
| 33.7 | | |
| 2.5 | |
including | |
| |
| 468.0 | | |
| 471.0 | | |
| 379 | | |
| 2.7 | | |
| 21.6 | |
and | |
West Pit | |
| 620.5 | | |
| 635.9 | | |
| 498 | | |
| 14.2 | | |
| 3.4 | |
DLM23-632 | |
West Pit | |
| 376.7 | | |
| 389.3 | | |
| 309 | | |
| 11.4 | | |
| 2.5 | |
and | |
West Pit | |
| 496.0 | | |
| 510.0 | | |
| 400 | | |
| 12.9 | | |
| 12.9 | |
and | |
West Pit | |
| 521.0 | | |
| 583.0 | | |
| 436 | | |
| 57.4 | | |
| 1.0 | |
DLM23-633 | |
West Pit | |
| 247.0 | | |
| 272.0 | | |
| 203 | | |
| 22.7 | | |
| 4.6 | |
and | |
West Pit | |
| 423.0 | | |
| 509.0 | | |
| 355 | | |
| 80.2 | | |
| 1.0 | |
DLM23-644 | |
West Pit | |
| 372.9 | | |
| 397.2 | | |
| 326 | | |
| 21.5 | | |
| 2.2 | |
and | |
West Pit | |
| 416.0 | | |
| 434.0 | | |
| 357 | | |
| 16.1 | | |
| 2.7 | |
and | |
West Pit | |
| 513.0 | | |
| 516.0 | | |
| 426 | | |
| 2.7 | | |
| 10.1 | |
and | |
West Pit | |
| 545.0 | | |
| 576.0 | | |
| 460 | | |
| 28.5 | | |
| 2.5 | |
and | |
West Pit | |
| 702.0 | | |
| 767.0 | | |
| 588 | | |
| 60.2 | | |
| 1.2 | |
DLM23-646 | |
West Pit | |
| 632.0 | | |
| 646.3 | | |
| 565 | | |
| 11.8 | | |
| 2.4 | |
DLM23-648 | |
West Pit | |
| 309.0 | | |
| 317.0 | | |
| 259 | | |
| 7.0 | | |
| 10.0 | |
and | |
West Pit | |
| 487.0 | | |
| 512.2 | | |
| 406 | | |
| 22.8 | | |
| 2.3 | |
and | |
West Pit | |
| 525.0 | | |
| 529.0 | | |
| 427 | | |
| 3.6 | | |
| 10.6 | |
and | |
West Pit | |
| 637.0 | | |
| 653.7 | | |
| 516 | | |
| 15.3 | | |
| 4.1 | |
including | |
| |
| 641.7 | | |
| 647.7 | | |
| 515 | | |
| 5.5 | | |
| 9.8 | |
and | |
West Pit | |
| 784.0 | | |
| 826.0 | | |
| 633 | | |
| 38.9 | | |
| 0.9 | |
DLM23-652A | |
West Pit | |
| 227.0 | | |
| 251.0 | | |
| 205 | | |
| 20.4 | | |
| 2.4 | |
DLM23-654A | |
West Pit Extension | |
| 479.0 | | |
| 496.0 | | |
| 424 | | |
| 14.9 | | |
| 2.7 | |
and | |
West Pit Extension | |
| 608.0 | | |
| 611.0 | | |
| 521 | | |
| 2.7 | | |
| 7.6 | |
and | |
West Pit Extension | |
| 668.3 | | |
| 686.0 | | |
| 573 | | |
| 16.1 | | |
| 2.5 | |
DLM23-662A | |
West Pit | |
| 959.0 | | |
| 972.0 | | |
| 868 | | |
| 11.1 | | |
| 3.1 | |
DLM23-665 | |
West Pit Extension | |
| 1,225.6 | | |
| 1,242.0 | | |
| 1061 | | |
| 14.4 | | |
| 2.8 | |
DLM23-666 | |
West Pit Extension | |
| 339.0 | | |
| 357.1 | | |
| 291 | | |
| 15.8 | | |
| 3.0 | |
and | |
West Pit Extension | |
| 385.0 | | |
| 411.0 | | |
| 331 | | |
| 22.8 | | |
| 3.7 | |
and | |
West Pit Extension | |
| 428.0 | | |
| 436.0 | | |
| 359 | | |
| 7.1 | | |
| 10.6 | |
DLM23-667CW | |
West Pit Extension | |
| 783.0 | | |
| 803.0 | | |
| 704 | | |
| 17.2 | | |
| 1.4 | |
including | |
West Pit Extension | |
| 797.0 | | |
| 801.0 | | |
| 709 | | |
| 3.4 | | |
| 4.0 | |
and | |
West Pit Extension | |
| 1,009.0 | | |
| 1,013.2 | | |
| 879 | | |
| 3.8 | | |
| 5.1 | |
and | |
West Pit Extension | |
| 1,061.7 | | |
| 1,067.7 | | |
| 920 | | |
| 5.4 | | |
| 7.1 | |
DLM23-670CW | |
West Pit | |
| 713.8 | | |
| 753.0 | | |
| 616 | | |
| 35.5 | | |
| 0.9 | |
and | |
West Pit | |
| 858.6 | | |
| 892.0 | | |
| 722 | | |
| 30.9 | | |
| 1.2 | |
including | |
| |
| 868.0 | | |
| 871.0 | | |
| 718 | | |
| 2.8 | | |
| 6.6 | |
and | |
West Pit | |
| 944.0 | | |
| 960.5 | | |
| 778 | | |
| 15.4 | | |
| 4.3 | |
DLM23-678 | |
West Pit Extension | |
| 226.0 | | |
| 229.0 | | |
| 198 | | |
| 2.5 | | |
| 15.0 | |
and | |
West Pit Extension | |
| 313.1 | | |
| 317.0 | | |
| 271 | | |
| 3.3 | | |
| 6.3 | |
and | |
West Pit Extension | |
| 559.0 | | |
| 586.1 | | |
| 481 | | |
| 23.9 | | |
| 2.0 | |
and | |
West Pit Extension | |
| 624.0 | | |
| 642.0 | | |
| 529 | | |
| 16.0 | | |
| 2.4 | |
DLM23-689 | |
West Pit Extension | |
| 1,090.7 | | |
| 1,093.7 | | |
| 981 | | |
| 2.5 | | |
| 17.3 | |
DLM23-690 | |
West Pit Extension | |
| 882.8 | | |
| 889.0 | | |
| 754 | | |
| 5.8 | | |
| 2.9 | |
and | |
West Pit Extension | |
| 934.0 | | |
| 965.0 | | |
| 799 | | |
| 29.2 | | |
| 2.4 | |
DLM23-693 | |
West Pit Extension | |
| 834.0 | | |
| 837.0 | | |
| 752 | | |
| 2.4 | | |
| 26.7 | |
Optimization of Assets and Infrastructure in
the Abitibi Region
During the second quarter of 2023, the Company
advanced internal studies to assess potential production opportunities at the Macassa Near Surface and AK deposits, and the Upper Beaver
and Wasamac projects. Among the alternatives considered, the Company is evaluating the potential to transport ore via rail or truck to
the LaRonde and Canadian Malartic processing facilities, which are expected to have excess mill capacity in the future. Leveraging existing
regional infrastructure has the potential to result in regional production growth at lower capital costs and with a reduced environmental
footprint, which could also be beneficial to future permitting activities.
The Macassa Near Surface and AK deposits are accessible
from an existing surface ramp at Macassa. Production from the Near Surface deposits commenced in the second quarter of 2023, with processing
of the ore at the Macassa mill. Production from the AK deposit could potentially begin in 2024. With the commissioning of the Shaft #4
and increased productivity from the Macassa deep mine, the Macassa mill is expected to reach its full capacity of 1,650 tpd by mid-2024.
The Company is evaluating the opportunity to process the near surface and AK ores at the LaRonde complex, which is approximately 130 kilometres
away, and avoid capital costs associated with a mill expansion at Macassa. Average annual production from these two deposits could potentially
be between 20,000 and 40,000 ounces of gold, commencing in 2024. The Company expects to report results on this evaluation in early 2024.
Drilling on the AK Zone close to surface continues
to convert and expand the current mineral resources, and the results show good continuity of mineralization in this zone, which is characterized
by disseminated pyrite in a sheared structure. Recent results include 11.1 g/t gold over 5.1 metres at 250 metres depth in hole KLAK-206
and 10.4 g/t gold over 2.5 metres at 240 metres depth in hole KLAK-186.
The Company is updating the studies that were
previously completed at the Upper Beaver and Wasamac projects to reflect the current gold price and cost environment. Alternative processing
scenarios at either the LaRonde or Canadian Malartic processing facilities are also being evaluated. Both mill complexes are close to
existing road and rail infrastructure and the Company is evaluating operational feasibility, operating costs and additional infrastructure
that would be required to load, transport and unload ore for processing and the tailings required for paste backfill. Both Upper Beaver
and Wasamac have the potential to be low-cost mines with annual production of 150,000 to 200,000 ounces of gold with moderate capital
outlays and initial production potentially commencing in 2030 and in 2029, respectively.
The Company expects to consolidate the results
of these various internal evaluations early in 2024 and report results through the first half of 2024.
Hope Bay – Extensive Exploration Drilling
at Doris and Madrid in Second Quarter of 2023; Step-Out Drilling Extends Madrid's High-Grade Patch 7 Zone at Depth and Laterally
Exploration drilling continued at Hope Bay during
the second quarter with six drill rigs at surface testing the Doris and Madrid deposits as well as regional targets, and three drill rigs
underground at Doris completing combined totals of 48,840 metres in 89 holes during the second quarter and 88,698 metres in 168 holes
during the first half of the year.
The objective is to grow the mineral resources
at both deposits to support future project studies and potentially resume mining at Hope Bay.
At Doris, drilling into the extensions of the
main fold hinge of the BCO Zone returned 15.0 g/t gold over 6.4 metres at 422 metres depth in hole HBBCO23-153, 5.5 g/t gold over 5.1
metres at 585 metres depth in hole HBBCO23-154 from underground drilling and 17.1 g/t gold over 4.8 metres at 607 metres depth in hole
HBD23-071, demonstrating the potential to continue growing the mineral resource laterally beyond the areas of historical mining.
Wide step-out drilling at Madrid at depth below
the current mineral resources has encountered gold mineralization with gold grades that are greater than the known Naartok, Suluk and
Patch-7 zones in an under-explored 1.5-kilometre gap in historical drilling between 400 and 700 metres depth. Within this gap, hole HBM23-086
returned 13.7 g/t gold over 4.6 metres at 697 metres depth and follow-up hole HBM23-105 returned 10.0 g/t gold over 14.0 metres at 677
metres depth. At shallower depths, hole HBM23-095 returned 3.1 g/t gold over 21.4 metres at 580 metres depth and hole HBM23-091 returned
5.3 g/t gold over 13.9 metres at 352 metres depth in the Patch 7 Zone.
This drilling has extended the high-grade Patch
7 Zone by 500 metres vertically and by 900 metres laterally at depth, and follow-up drilling will continue testing the gap between Suluk
and Patch 7 at 200-metre step-outs to evaluate the potential of this zone.
Selected recent drill intercepts from the Doris
and Madrid deposits are set out in the composite longitudinal sections and table below.
[Doris Deposit at Hope Bay – Composite
Longitudinal Section]
[Madrid Deposit at Hope Bay – Composite
Longitudinal Section]
Recent selected drill results from Doris and Madrid deposits at
Hope Bay
Drill hole | |
Deposit / zone | |
From (metres) | | |
To (metres) | | |
Depth of midpoint below surface (metres) | | |
Estimated true width (metres) | | |
Gold grade (g/t) (uncapped) | | |
Gold grade (g/t) (capped)* | |
HBBCO23-153 | |
Doris / BCO WL | |
| 205.0 | | |
| 213.3 | | |
| 422 | | |
| 6.4 | | |
| 24.0 | | |
| 15.0 | |
including | |
| |
| 210.0 | | |
| 213.3 | | |
| 422 | | |
| 2.6 | | |
| 55.1 | | |
| 32.4 | |
HBBCO23-154 | |
Doris / BCO WL | |
| 221.0 | | |
| 230.1 | | |
| 585 | | |
| 5.1 | | |
| 5.5 | | |
| 5.5 | |
including | |
| |
| 227.3 | | |
| 230.1 | | |
| 587 | | |
| 1.6 | | |
| 12.7 | | |
| 12.7 | |
HBD23-071 | |
Doris / BCO WL | |
| 731.5 | | |
| 737.3 | | |
| 607 | | |
| 4.8 | | |
| 17.1 | | |
| 17.1 | |
HBM23-086 | |
Madrid / Patch 7-Suluk Gap | |
| 832.5 | | |
| 840.5 | | |
| 697 | | |
| 4.6 | | |
| 15.1 | | |
| 13.7 | |
HBM23-091 | |
Madrid / Patch 7 | |
| 394.0 | | |
| 410.0 | | |
| 352 | | |
| 13.9 | | |
| 5.3 | | |
| 5.3 | |
including | |
| |
| 395.0 | | |
| 406.5 | | |
| 351 | | |
| 10.0 | | |
| 6.6 | | |
| 6.6 | |
HBM23-095 | |
Madrid / Patch 7-Suluk Gap | |
| 723.5 | | |
| 757.0 | | |
| 580 | | |
| 21.4 | | |
| 3.1 | | |
| 3.1 | |
including | |
| |
| 730.0 | | |
| 744.0 | | |
| 577 | | |
| 9.0 | | |
| 5.3 | | |
| 5.3 | |
HBM23-105 | |
Madrid / Patch 7-Suluk Gap | |
| 815.0 | | |
| 839.5 | | |
| 677 | | |
| 14.0 | | |
| 14.5 | | |
| 10.0 | |
including | |
| |
| 830.5 | | |
| 838.0 | | |
| 682 | | |
| 4.3 | | |
| 42.3 | | |
| 27.6 | |
*Results from the Doris and Madrid deposits at
Hope Bay use a capping factor of 50 g/t gold.
Based on the positive results at Doris and Madrid
in the first half of the year, the Company has approved a supplemental exploration budget at Hope Bay of $14.5 million for an
additional 58,000 metres of drilling during the remainder of 2023. The previous exploration budget at Hope Bay for the full year
2023 was $30.6 million for 72,000 metres of drilling.
A regional exploration program is also underway,
with field work commencing in May. One drill rig has been mobilized to test anomalies identified during the 2022 and 2023 field seasons
with a focus on targets near the Koignuk fault, located four kilometres northwest of the Madrid deposit, and targets outside of the main
Madrid mineralized trend.
In the meantime, technical studies continue to
progress while larger production scenarios for Hope Bay are being evaluated.
San Nicolás Project
On April 6, 2023, the Company and Teck Resources
Limited ("Teck") entered into a joint venture shareholders agreement in respect of the San Nicolás copper-zinc development
project located in Zacatecas, Mexico. During the second quarter, Agnico Eagle and Teck began to implement the joint operation through
Minera San Nicolás S.A.P.I. de C.V. ("MSN"). The Environmental Impact Assessment for the project is expected to be submitted
to the Mexican regulator in the third quarter of 2023 and MSN is targeting completion of the feasibility study in the first half of 2024.
Impact on Operations from Ongoing Wildfires
in Quebec and Caribou Migration in Nunavut
In June 2023, the Company's operations in
Quebec and Ontario were affected by wildfires in the region. High levels of smoke from the wildfires caused poor air quality and low visibility,
as well as two significant power outages disrupting regular activities. Throughout this period, the Company monitored in real time the
air quality in its underground operations to ensure the safety of the workers. Several shifts at the Company's Quebec and Ontario operations
were cancelled, affecting mostly underground activities. Ore stockpiles were processed to sustain mill operations and lessen the overall
impact on production. The Company has continued to prioritize the safety and well-being of its people. Despite the downtime, the operations
in Ontario and Quebec continued to perform well.
In Nunavut, the Company experienced the earliest
and longest caribou migration since it began operations in the region. Caribou migration impacted operations during the quarter with higher-than
planned surface and underground operations delays. Details on the production stoppage are set out below. Given the unpredictability
of the seasonal migration, the Company continues to work with government and local stakeholders to assure caribou protection while continuously
adapting and improving protection measures.
Environment, Social and Governance Performance
Summary
Health and Safety
| · | The Company recorded one of its best ever quarterly safety performances in the second quarter of 2023,
and notably the Company recorded its best safety performance in the first six months of any year in its history |
| · | The LaRonde complex recorded its best quarterly safety performance in the last 10 years |
| · | The Meliadine mine recorded its best ever quarterly performance and received the John T. Ryan award from
the Canadian Institute of Mining, Metallurgy and Petroleum for achieving the lowest reportable injury frequency in the Prairie Provinces
and Territories in 2022 |
| · | The Meadowbank complex rescue team won three trophies at the Mine Rescue Competition in Yellowknife |
| · | The Macassa mine rescue team won first place in the Kirkland Lake District Competition and placed third
overall in the Ontario Provincial Mine Rescue Competition |
Environment and Permitting
| · | The regulatory process to amend the Meliadine mine's permit to include future underground mining and associated
saline water management infrastructure at the Pump, F-Zone and Discovery deposits was initiated in 2022 with the Nunavut Impact Review
Board ("NIRB") and the Nunavut Water Board. Construction and operation of a wind-farm is also included in the application. The
NIRB public hearing process is scheduled for September 2023 |
Community Relations, Governance and People
| · | For the 5th year in a row, and 9th time since 2012, the Company was included in Corporate Knights' list
of Canada's Best 50 Corporate Citizens, recognizing our leadership in sustainability and responsible mining practices |
| · | The Company received special recognition from Senator Patterson of the Canadian Senate for the Company's
contribution to socioeconomic development in Nunavut |
| · | Agnico Eagle Mexico was recognized by Great Place To Work® México as one of the Best Places
to Work in Mexico for the 12th consecutive year |
Dividend Record and Payment Dates for the Third Quarter of 2023
Agnico Eagle's Board of Directors has declared
a quarterly cash dividend of $0.40 per common share, payable on September 15, 2023 to shareholders of record as of September 1,
2023. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates
for the 2023 Fiscal Year
Record Date |
Payment Date |
March 1, 2023* |
March 15, 2023* |
June 1, 2023* |
June 15, 2023* |
September 1, 2023** |
September 15, 2023** |
December 1, 2023 |
December 15, 2023 |
*Paid
**Declared
Dividend Reinvestment Plan
See the following link for information on the
Company's dividend reinvestment plan: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international
dividend currency exchange program, please contact Computershare Trust Company of Canada by phone at 1.800.564.6253 or online at www.investorcentre.com
or www.computershare.com/investor.
ABITIBI REGION, QUEBEC
LaRonde Complex – Solid Production, Mill
Throughput, Hoisting and Development Performance in the Second Quarter of 2023
| |
Three Months Ended | | |
Six Months Ended | |
LaRonde Complex – Operating Statistics | |
Jun 30, 2023 | | |
Jun 30, 2022 | | |
Jun 30, 2023 | | |
Jun 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 660 | | |
| 714 | | |
| 1,368 | | |
| 1,447 | |
Tonnes of ore milled per day | |
| 7,253 | | |
| 7,824 | | |
| 7,558 | | |
| 7,994 | |
Gold grade (g/t) | |
| 3.82 | | |
| 4.08 | | |
| 3.77 | | |
| 4.41 | |
Gold production (ounces) | |
| 76,780 | | |
| 88,510 | | |
| 156,387 | | |
| 193,547 | |
Production costs per tonne (C$) | |
$ | 174 | | |
$ | 92 | | |
$ | 145 | | |
$ | 100 | |
Minesite costs per tonne (C$)8 | |
$ | 151 | | |
$ | 124 | | |
$ | 154 | | |
$ | 122 | |
Production costs per ounce of gold produced | |
$ | 1,117 | | |
$ | 577 | | |
$ | 944 | | |
$ | 587 | |
Total cash costs per ounce of gold produced | |
$ | 884 | | |
$ | 649 | | |
$ | 922 | | |
$ | 601 | |
8 Minesite costs per tonne is a non-GAAP measure that does
not have a standardized meaning under IFRS. For a reconciliation to production costs see "Reconciliation of Non-GAAP Performance Measures"
below. See also "Note Regarding Certain Measures of Performance".
Gold Production
| · | Second Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily
due to lower processing volumes and lower grades as a result of changes in the mining method at the LaRonde mine that resulted in more
lower grade ore being sourced from upper portions of the mine and a slower mining rate |
| · | First Six Months of 2023 – Gold Production decreased when compared to the prior-year period due
to lower grades and lower processing volumes as a result of the changes in mining method described above |
Production Costs
| · | Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period
primarily due to the timing of sales of concentrate inventory, higher underground mining costs from higher labour and materials costs
and higher mill services costs from the transition to dry tailings disposition. Production costs per ounce increased when compared to
the prior-year period primarily due to the reasons outlined above, partially offset by a weaker Canadian dollar relative to the U.S. dollar |
| · | First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year
period primarily due to the reasons outlined above. Production costs per ounce increased when compared to the prior-year period primarily
as a result of higher production costs per tonne, the timing of sales of concentrate inventory and lower gold grades, partially offset
by a weaker Canadian dollar relative to the U.S. dollar |
Minesite and Total Cash Costs
| · | Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to the higher mining and milling costs outlined above. Total cash costs per ounce increased when compared to the prior-year
period primarily for the same reasons as the increase in minesite costs per tonne, lower revenues from by-product sales and lower gold
grades, partially offset by a weaker Canadian dollar relative to the U.S. dollar |
| · | First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to the reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period primarily due
to the reasons outlined above |
Highlights
| · | Despite the decrease in gold production when compare to the prior-year period, the second quarter of 2023
saw higher than expected gold production due to solid underground productivity from both the LaRonde and the LaRonde Zone 5 mines and
higher than expected grades from the LaRonde mine. Underground development remained above target despite fewer production days as a result
of the poor air quality from wildfires in the area. The mill also outperformed targets despite power outages in the area related to the
wildfires |
| · | The LaRonde Zone 5 processing facility is now planned to be idled late in the fourth quarter of 2023 (previously
the third quarter of 2023) to take advantage of the approximately 2,000 tpd of excess capacity in the LaRonde mill. A planned 10-day shutdown
was completed in July 2023 at the LaRonde mill, which included some adjustments made to the copper circuit for future processing
of concentrate from Akasaba West |
| · | Production in the 11-3 Zone at the LaRonde mine is expected to start in the third quarter of 2023 as previously
planned. The required breakthrough of the escapeway ramp advanced in the second quarter with development of the mining levels ongoing
and the pastefill distribution network also progressing well. The 11-3 Zone is expected to add additional flexibility in the LaRonde mine
production plan |
| · | Work to repair the ore handling system in the lower LaRonde mine will be performed through the second
half of 2023 as previously planned. As a result, underground hoisting is expected to have reduced capacity for a period of approximately
26 days, with impact to production being mitigated by the processing of existing surface stockpiles |
| · | With the further development of the exploration drift on Level 215 at LaRonde, exploration drilling from
the new drill platforms is resuming with results expected later in the year. Surface drilling west of LaRonde Zone 5 during the second
quarter continued to infill inferred mineral resources |
Canadian Malartic Complex – Seven Millionth
Ounce Poured; Production from Odyssey Underground Ramping-up
| |
Three Months Ended | | |
Six Months Ended | |
Canadian Malartic Complex – Operating Statistics* | |
Jun 30, 2023 | | |
Jun 30, 2022 | | |
Jun 30, 2023 | | |
Jun 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 4,882 | | |
| 4,798 | | |
| 9,406 | | |
| 9,622 | |
Tonnes of ore milled per day | |
| 53,648 | | |
| 52,725 | | |
| 51,967 | | |
| 53,160 | |
Gold grade (g/t) | |
| 1.22 | | |
| 1.23 | | |
| 1.21 | | |
| 1.19 | |
Gold production* (ounces) | |
| 177,755 | | |
| 87,186 | | |
| 258,440 | | |
| 167,695 | |
Production costs per tonne (C$) | |
$ | 40 | | |
$ | 30 | | |
$ | 38 | | |
$ | 30 | |
Minesite costs per tonne (C$) | |
$ | 39 | | |
$ | 35 | | |
$ | 39 | | |
$ | 35 | |
Production costs per ounce of gold produced | |
$ | 811 | | |
$ | 647 | | |
$ | 780 | | |
$ | 676 | |
Total cash costs per ounce of gold produced | |
$ | 772 | | |
$ | 753 | | |
$ | 779 | | |
$ | 772 | |
* Gold production reflects Agnico Eagle's 50% interest in the Canadian
Malartic complex up to and including March 30, 2023 and 100% thereafter.
Gold Production
| · | Second Quarter of 2023 – Gold production increased when compared to the prior-year period primarily
due to the Company's increase in ownership of the mine from 50% to 100% on March 31, 2023 |
| · | First Six Months of 2023 – Gold production increased when compared to the prior-year period for
the same reason outlined above |
Production Costs
| · | Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period
primarily due to the fair value adjustment on inventory, the consumption of ore stockpile during the quarter. Production costs per ounce
increased slightly when compared to the prior-year period primarily due to the higher production costs per tonne, partially offset by
the weaker Canadian dollar relative to the U.S. dollar |
| · | First Six Months of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to the fair value adjustment on inventory, the consumption of stockpiles and higher
open pit mining costs. Production costs per ounce increased when compared to the prior-year period primarily due to higher production
costs per tonne, partially offset by higher gold grades and the weaker Canadian dollar relative to the U.S. dollar |
Minesite and Total Cash Costs
| · | Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period
due to the consumption of ore stockpile during the quarter. Total cash costs per ounce increased when compared to the prior-year period
primarily due to higher minesite costs per tonne, partially offset by the weaker Canadian dollar relative to the U.S. dollar |
| · | First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to the consumption of ore stockpiles and higher open pit mining costs. Total cash costs per ounce increased when compared
to the prior-year period primarily due to the same reasons as the second quarter of 2023 minesite costs per ounce |
Highlights
| · | On June 28th the Canadian Malartic complex reached a milestone by pouring its seven millionth gold
ounce since achieving commercial production in 2011 |
| · | Gold production from the Odyssey mine in the second quarter of 2023 totaled 6,747 ounces. The commissioning
of the paste plant has been slightly delayed because of corrective measures required with recently installed piping for the paste network.
The paste plant startup is now scheduled for August 2023 |
| · | The Canadian Malartic pit was depleted in the second quarter of 2023. Work has commenced to prepare for
in-pit tailings disposal, which is expected to start in the second half of 2024 |
| · | An update on Odyssey project development, construction and exploration highlights is set out in the Update
on Key Value Drivers and Pipeline Projects section above |
Goldex – Record Quarterly Gold Production
and Mill Throughput Since Re-start; Best Development Quarter in Zone Deep 2
| |
Three Months Ended | | |
Six Months Ended | |
Goldex Mine – Operating Statistics | |
Jun 30, 2023 | | |
Jun 30, 2022 | | |
Jun 30, 2023 | | |
Jun 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 761 | | |
| 738 | | |
| 1,459 | | |
| 1,482 | |
Tonnes of ore milled per day | |
| 8,363 | | |
| 8,121 | | |
| 8,061 | | |
| 8,188 | |
Gold grade (g/t) | |
| 1.74 | | |
| 1.74 | | |
| 1.74 | | |
| 1.69 | |
Gold production (ounces) | |
| 37,716 | | |
| 36,877 | | |
| 71,739 | | |
| 71,322 | |
Production costs per tonne (C$) | |
$ | 50 | | |
$ | 46 | | |
$ | 52 | | |
$ | 45 | |
Minesite costs per tonne (C$) | |
$ | 51 | | |
$ | 46 | | |
$ | 51 | | |
$ | 46 | |
Production costs per ounce of gold produced | |
$ | 747 | | |
$ | 719 | | |
$ | 781 | | |
$ | 740 | |
Total cash costs per ounce of gold produced | |
$ | 776 | | |
$ | 718 | | |
$ | 792 | | |
$ | 746 | |
Gold Production
| · | Second Quarter of 2023 – Gold production increased when compared to the prior-year period primarily
due to higher throughput levels resulting from good mill availability |
| · | First Six Months of 2023 – Gold production increased when
compared to the prior-year period primarily due to higher gold grades from increased ore sourced from the higher grade South Zone, partially
offset by lower mill throughput levels in the first quarter of 2023 due to low ore availability in the Deep 1 Zone |
Production Costs
| · | Second Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to higher underground maintenance costs from higher major component replacements
in the quarter and higher underground production costs from higher consumable prices. Production costs per ounce increased when compared
to the prior-year period primarily for the same reasons as the higher production costs per tonne, partially offset by the weaker Canadian
dollar relative to the U.S. dollar and the timing of inventory sales |
| · | First
Six Months of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to the same reasons outlined above.
Production costs per ounce increased when compared to the prior-year period primarily due
to higher production costs per tonne, partially offset by the weaker Canadian dollar against
the U.S. dollar and higher gold grades |
Minesite and Total Cash Costs
| · | Second
Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period due to the same reasons as the higher production cost
per tonne. Total cash costs per ounce increased when compared to the prior-year period due
to higher minesite costs per tonne, partially offset by the weaker Canadian dollar against
the U.S. dollar |
| · | First
Six Months of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the same reasons outlined above.
Total cash costs per ounce increased when compared to the prior-year period primarily due
to higher minesite costs per tonne, partially offset by higher gold grades and the weaker
Canadian dollar against the U.S. dollar and higher gold grades |
Highlights
| · | Underground
development continues to be on time and on budget for Deep 2 with development ahead of schedule
for South Zone sector 3 opening mining flexibility |
| · | The
Akasaba West project commenced in September 2022 and remained on schedule through the
second quarter of 2023 with construction of the garage, office and ponds completed and the
water treatment facility ready for final installation in the third quarter of 2023. Achievement
of commercial production remains expected to occur in the first quarter of 2024 |
Exploration Highlights
| · | Exploration
at Goldex during the second quarter of 2023 continued to target the eastern extension of
the South Zone in Sector 3, with the objective of converting mineral resources into mineral
reserves and extending Sector 3 at depth and to the east below Level 140. The South Zone
gold mineralization is hosted in silicified volcanic rocks with sulphides and stacking of
quartz veins and veinlets, and has higher gold grades than the primary mineralized zones
at Goldex |
| · | Highlights
from the conversion drilling in Sector 3 include 12.9 g/t gold over 8.0 metres at 1,376 metres
depth in hole GD135-065, 5.4 g/t gold over 7.0 metres at 1,284 metres depth in hole GD135-052
and 5.4 g/t gold over 6.0 metres at 1,427 metres depth in hole GD138-009 |
| · | Exploration
drilling also targeted the W Zone located at shallower depths approximately 200 metres west
of the main deposit at Goldex, with new results of: 1.2 g/t gold over 25.0 metres at 496
metres depth and 7.3 g/t gold over 9.0 metres at 575 metres depth in hole GD27-056; and 3.7
g/t gold over 6.0 metres at 320 metres depth in hole GD27-057. Mineralization is observed
to be similar to the main Goldex deposit, displaying quartz-tourmaline-albite veins with
pyrite mineralization |
ABITIBI REGION, ONTARIO
Detour Lake – Record Quarterly Mill
Performance; Continued Focus on Mill Optimization to Achieve 28.0 Mtpa by 2025
| |
Three Months
Ended | | |
Six Months
Ended | |
Detour Lake Mine – Operating Statistics | |
Jun 30,
2023 | | |
Jun 30,
2022 | | |
Jun 30,
2023 | | |
Jun 30,
2022* | |
Tonnes of ore milled (thousands of tonnes) | |
| 6,800 | | |
| 6,519 | | |
| 13,197 | | |
| 9,789 | |
Tonnes of ore milled per day | |
| 74,725 | | |
| 71,638 | | |
| 72,912 | | |
| 68,455 | |
Gold grade (g/t) | |
| 0.85 | | |
| 1.01 | | |
| 0.85 | | |
| 1.02 | |
Gold production (ounces) | |
| 169,352 | | |
| 195,515 | | |
| 331,209 | | |
| 295,958 | |
Production costs per tonne (C$) | |
$ | 22 | | |
$ | 27 | | |
$ | 23 | | |
$ | 33 | |
Minesite costs per tonne (C$) | |
$ | 26 | | |
$ | 24 | | |
$ | 26 | | |
$ | 24 | |
Production costs per ounce of gold produced | |
$ | 666 | | |
$ | 703 | | |
$ | 685 | | |
$ | 870 | |
Total cash costs per ounce of gold produced | |
$ | 731 | | |
$ | 640 | | |
$ | 750 | | |
$ | 626 | |
*For the Six Months Ended June 30, 2022, the operating statistics
are reported for the period from February 8, 2022 to June 30, 2022.
Gold Production
| · | Second
Quarter of 2023 – Gold production decreased when compared to the prior year period
primarily due to lower grades as expected due to the planned mining sequence |
| · | First
Six Months of 2023 – Gold production increased when compared to the prior-year period
reflecting a full first quarter of production in 2023 as compared to 51 days in the first
quarter of 2022 following the Merger, partially offset by lower gold grades as expected due
to the planned mining sequence |
Production Costs
| · | Second
Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year
period primarily due to the realization in 2022 of fair value adjustments to inventory arising
from the purchase price allocation. Production costs per ounce decreased when compared to
the prior-year period primarily due to the same reasons as outlined above |
| · | First
Six Months of 2023 – Production costs per tonne and production costs per ounce decreased
compared to the prior year period due to the same reasons outlined above |
Minesite and Total Cash Costs
| · | Second
Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to higher maintenance costs on
mobile equipment and spare parts, partially offset
by higher throughput volumes. Total cash costs per ounce increased when compared to the prior
year period due lower gold grades and higher mining costs, partially offset by the weaker
Canadian dollar relative to the U.S. dollar |
| · | First
Six Months of 2023 – Minesite costs per tonne increased when compared to the prior
year period primarily due to higher maintenance costs on mobile equipment and spare parts.
Total cash cost per ounce increased when compared to the prior year period primarily due
to higher mining and milling costs from higher fuel and electricity prices and lower gold
grades, partially offset by the weaker Canadian dollar relative to the U.S. dollar |
Highlights
| · | Detour
Lake achieved record quarterly mill performance in the second quarter of 2023 with an overall
solid operating performance |
| · | In
addition to the four CAT 798 trucks commissioned in the first quarter of 2023, two additional
trucks were commissioned in the second quarter |
| · | An
update on the multiple initiatives to increase mill throughput to 28.0 Mtpa by 2025, potential
expansion scenarios and exploration highlights is set out in the "Update on Key Value
Drivers and Pipeline Projects" section above |
Macassa – Record Quarterly Mill Throughput,
Skipped Tonnes and Underground Development Underscore a Solid Production Result
| |
Three Months
Ended | | |
Six Months
Ended | |
Macassa Mine – Operating Statistics | |
Jun 30,
2023 | | |
Jun 30,
2022 | | |
Jun 30,
2023 | | |
Jun 30,
2022* | |
Tonnes of ore milled (thousands of tonnes) | |
| 112 | | |
| 88 | | |
| 199 | | |
| 135 | |
Tonnes of ore milled per day | |
| 1,231 | | |
| 970 | | |
| 1,099 | | |
| 945 | |
Gold grade (g/t) | |
| 16.16 | | |
| 22.02 | | |
| 19.29 | | |
| 20.15 | |
Gold production (ounces) | |
| 57,044 | | |
| 61,262 | | |
| 121,159 | | |
| 85,750 | |
Production costs per tonne (C$) | |
$ | 464 | | |
$ | 479 | | |
$ | 519 | | |
$ | 615 | |
Minesite costs per tonne (C$) | |
$ | 503 | | |
$ | 519 | | |
$ | 539 | | |
$ | 520 | |
Production costs per ounce of gold produced | |
$ | 676 | | |
$ | 539 | | |
$ | 631 | | |
$ | 762 | |
Total cash costs per ounce of gold produced | |
$ | 747 | | |
$ | 582 | | |
$ | 672 | | |
$ | 641 | |
*For the Six Months Ended June 30, 2022, the operating statistics
are reported for the period from February 8, 2022 to June 30, 2022.
Gold Production
| · | Second
Quarter of 2023 – Gold production decreased when compared to the prior year period
primarily due to lower gold grades in the mining sequence, partially offset by higher throughput
volumes |
| · | First
Six Months of 2023 – Gold production increased when compared to the prior-year period
reflecting higher mine productivity and a full first quarter of production in 2023 as compared
to 51 days in the first quarter of 2022 following the Merger |
Production Costs
| · | Second
Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year
period primarily due to the realization in 2022 of
fair value adjustments to inventory arising from the purchase price allocation. Production
costs per ounce increased when compared to the prior-year period primarily due to lower gold
grades |
| · | First
Six Months of 2023 – Production costs per tonne and production cost per ounce decreased
when compared to the prior year period due to the same reasons outlined above |
Minesite and Total Cash Costs
| · | Second
Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year
period due to higher mining volumes, partially offset by higher mining costs from higher
input prices. Total cash costs per ounce increased when compared to the prior-year period
due to higher mining costs, lower gold grades and the timing of inventory sales, partially
offset by the weaker Canadian dollar relative to the U.S. dollar |
| · | First
Six Months of 2023 – Minesite costs per tonne increased when compared to the prior
year period primarily due to higher mining costs from higher input prices and the timing
of inventory sales, partially offset by higher mining volumes. Total cash costs per ounce
increased when compared to the prior year period for the same reasons outlined above |
Highlights
| · | Macassa
realized record mill throughput, record tonnage hoisted and record underground development
in the second quarter of 2023. Macassa achieved a solid production during the quarter and
continues to build on productivity gains showcasing a growing operation with increasing stability
as adherence and compliance to plan continue to improve |
| · | The
upgrade of the ventilation system progressed as planned with the second fan commissioned
in the second quarter of 2023 |
Exploration Highlights
Exploration drilling at Macassa during the second
quarter of 2023 targeted the Main Break, the eastern extension of the South Mine Complex ("SMC") and the western and deeper
extension of the AK deposit.
| · | Extension
drilling targeting the Main Break is suggesting the potential for a new lens of gold mineralization
close to current mine infrastructure, with results of 25.6 g/t gold over 2.0 metres at 1,601
metres depth in hole 53-4733 and 14.7 g/t gold over 3.7 metres at 1,615 metres depth in hole
53-4732. Highlight hole 53-4732 returned 10.7 g/t gold over 1.4 metres at 1,743 metres depth
in the Main Break beyond the current mineral resources, further indicating that gold mineralization
may continue down-dip below the lowest development at the historic Kirkland Minerals and
Teck Hughes mines. East of Shaft #4, encouraging drill results in the Main Break are increasing
confidence in the approximately 200 metres up-dip extension of mineral resources with hole
58-833 returning 15.5 g/t gold over 2.0 metres at 1,875 metres depth and hole 58-839 returning
10.8 g/t gold over 2.7 metres at 1,870 metres depth |
| · | On
the western side of the SMC, drilling to the south intersected significant gold mineralization
west of the current mineral resources, showing the potential for a mineral resource extension.
Multiple mineralized intercepts in hole 57-1386 included 23.6 g/t gold over 1.3 metres at
1,734 metres depth and in hole 57-1387 included 29.3 g/t gold over 1.1 metres at 1,723 metres
depth |
Selected recent drill results from Macassa and
AK are set out in the composite longitudinal section and the table below.
[Macassa Mine and AK Zone – Composite
Longitudinal Section]
Recent selected exploration drill results from Macassa and AK deposit
Drill
hole | |
Deposit
/ Zone | |
From
(metres) | | |
To
(metres) | | |
Depth
of
midpoint below
surface
(metres) | | |
Estimated
true
width (metres) | | |
Gold
grade (g/t)
(uncapped) | | |
Gold
grade
(g/t) (capped)* | |
53-4732 | |
Macassa - SMC East | |
| 142.2 | | |
| 145.9 | | |
| 1,615 | | |
| 3.7 | | |
| 14.7 | | |
| 14.7 | |
and | |
Macassa - Main Break | |
| 627.8 | | |
| 629.8 | | |
| 1,743 | | |
| 1.4 | | |
| 25.9 | | |
| 10.7 | |
and | |
Macassa - Main Break | |
| 645.6 | | |
| 648.2 | | |
| 1,760 | | |
| 1.8 | | |
| 4.7 | | |
| 4.7 | |
53-4733 | |
Macassa - SMC East | |
| 127.6 | | |
| 129.6 | | |
| 1,601 | | |
| 2.0 | | |
| 25.6 | | |
| 25.6 | |
57-1386 | |
Macassa - SMC West | |
| 113.6 | | |
| 116.3 | | |
| 1,734 | | |
| 1.3 | | |
| 23.6 | | |
| 23.6 | |
and | |
Macassa - SMC West | |
| 124.3 | | |
| 128.0 | | |
| 1,730 | | |
| 1.6 | | |
| 13.9 | | |
| 13.9 | |
57-1387 | |
Macassa - SMC West | |
| 85.0 | | |
| 87.2 | | |
| 1,721 | | |
| 1.3 | | |
| 9.9 | | |
| 9.9 | |
and | |
Macassa - SMC West | |
| 94.5 | | |
| 96.5 | | |
| 1,723 | | |
| 1.1 | | |
| 29.3 | | |
| 29.3 | |
and | |
Macassa - SMC West | |
| 105.9 | | |
| 107.9 | | |
| 1,718 | | |
| 1.1 | | |
| 11.6 | | |
| 11.6 | |
58-833 | |
Macassa - Main Break | |
| 168.2 | | |
| 170.4 | | |
| 1,875 | | |
| 2.0 | | |
| 25.4 | | |
| 15.5 | |
58-839 | |
Macassa - Main Break | |
| 162.3 | | |
| 165.1 | | |
| 1,870 | | |
| 2.7 | | |
| 17.9 | | |
| 10.8 | |
KLAK-206 | |
AK - Ramp | |
| 137.9 | | |
| 147.4 | | |
| 250 | | |
| 5.1 | | |
| 11.1 | | |
| 11.1 | |
KLAK-186 | |
AK - Ramp | |
| 121.5 | | |
| 125.2 | | |
| 240 | | |
| 2.5 | | |
| 10.4 | | |
| 10.4 | |
and | |
AK - Ramp | |
| 126.9 | | |
| 128.9 | | |
| 244 | | |
| 1.3 | | |
| 8.5 | | |
| 8.5 | |
*Results from Macassa mine use a capping factor ranging from 68.6
g/t to 445.7 g/t gold depending on the zone. Results from AK use a capping factor of 70 g/t gold.
NUNAVUT
Meliadine Mine – Record Monthly Mill
Throughput in May; Record Quarterly Health and Safety Performance
| |
Three Months
Ended | | |
Six Months
Ended | |
Meliadine Mine – Operating Statistics | |
June 30,
2023 | | |
June 30,
2022 | | |
June 30,
2023 | | |
June 30,
2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 461 | | |
| 449 | | |
| 937 | | |
| 881 | |
Tonnes of ore milled per day | |
| 5,066 | | |
| 4,934 | | |
| 5,177 | | |
| 4,867 | |
Gold grade (g/t) | |
| 6.14 | | |
| 6.97 | | |
| 6.13 | | |
| 6.51 | |
Gold production (ounces) | |
| 87,682 | | |
| 97,572 | | |
| 178,149 | | |
| 178,276 | |
Production costs per tonne (C$) | |
$ | 230 | | |
$ | 244 | | |
$ | 229 | | |
$ | 237 | |
Minesite costs per tonne (C$) | |
$ | 261 | | |
$ | 234 | | |
$ | 250 | | |
$ | 237 | |
Production costs per ounce of gold produced | |
$ | 899 | | |
$ | 885 | | |
$ | 898 | | |
$ | 926 | |
Total cash costs per ounce of gold produced | |
$ | 1,019 | | |
$ | 837 | | |
$ | 978 | | |
$ | 912 | |
Gold Production
| · | Second
Quarter of 2023 – Gold production decreased when
compared to the prior-year period primarily due to lower gold grades, partially offset
by higher mill throughput |
| · | First
Six Months of 2023 – Gold production decreased slightly when compared to the prior-year
period primarily due to lower gold grades, mostly offset by higher mill throughput in the
first quarter of 2023 from incremental mill improvements and additional ore sourced from
the open pit |
Production Costs
| · | Second
Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period primarily due to the timing of inventory sales. Production
costs per ounce increased when compared to the prior-year period primarily due to lower gold
grades, partially offset by the lower production cost per tonne and the weaker Canadian dollar
relative to the U.S. dollar |
| · | First
Six Months of 2023 – Production costs per tonne decreased
when compared to the prior-year period due to the timing of inventory sales and a higher
deferred stripping costs, partially offset by higher mill and logistics costs. Production
costs per ounce decreased when compared to the prior-year period due to the weaker Canadian
dollar relative to the U.S. dollar and the lower production costs per tonne, partially offset
by lower gold grades |
Minesite and Total Cash Costs
| · | Second
Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the consumption of ore stockpile
inventory and higher mill costs from higher fuel prices. Total cash costs per ounce increased
when compared to the prior-year period due to the higher minesite costs per tonne and lower
gold grades, partially offset by the weaker Canadian dollar relative to the U.S. dollar |
| · | First
Six Months of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to higher fuel prices, partially offset
by the increase in ore stockpile inventory. Total cash costs per ounce increased when compared
to the prior-year period due to lower gold grades and higher minesite costs per tonne, partially
offset by the weaker Canadian dollar relative to the U.S. dollar |
Highlights
| · | Meliadine
continued to improve mill availability and achieved record monthly mill throughput in May 2023
as well as an overall strong performance from the processing plant in the second quarter
of 2023 |
| · | Meliadine
experienced approximately 11 days of downtime in June related to caribou migration which
affected the open pit and paste plant, as well as underground development. The better than
anticipated development and hauling performances in April and May helped to mitigate
the overall impact of the operational downtime |
| · | The
Phase 2 mill expansion is expected to be completed in mid-2024 and the processing rate ramp-up
is expected to increase throughput to achieve 6,000 tpd by year-end 2024. In the second quarter
of 2023, the CIL building advanced with mechanical piping and electrical work ongoing, the
secondary grinding building concrete work is ongoing with the structure erection expected
to commence in early August and the power plant building interior architectural work
is ongoing. The waterline installation is underway and is expected to be completed in 2024,
allowing for utilization in the summer of 2025 |
Exploration Highlights
Exploration drilling during the second quarter
at Meliadine was carried out from both surface and the new exploration ramp that provides a platform at approximately 460 metres depth
and extends deeper towards the west. Highlight results from the first half of 2023 include:
| · | At
the Tiriganiaq deposit, drilling demonstrated continuity of mineralization at depth below
the deepest drill holes to date. Hole ML425-9740-D28 yielded 8.0 g/t gold over 3.7 metres
at 742 metres depth. Exploration drilling will continue to investigate this new plunging
mineralization from the exploration ramp being driven eastward. Closer to surface at Tiriganiaq,
hole M22-3246 yielded 9.6 g/t gold over 4.1 metres at 204 metres depth in the up-plunge of
the main mineralized trend |
| · | At
the Wesmeg North deposit, deep drilling intersected gold mineralization below current mineral
resources with hole ML400-10030-D8 yielding 6.3 g/t gold over 7.4 metres at 558 metres depth.
In the western plunge of the Wesmeg deposit, hole ML450-9290-D9 yielded 6.4 g/t gold over
8.2 metres at 484 metres depth and hole ML450-9290-D15 yielded 7.6 g/t gold over 4.3 metres
at 530 metres depth |
| · | At
the Wesmeg deposit, holes ML400-10200-D2 and ML400-10200-D8 also indicate the extension of
mineralization at depth with 6.4 g/t gold over 6.8 metres at 453 metres depth and 18.2 g/t
gold over 3.6 metres at 531 metres depth, respectively |
| · | At
the F-Zone deposit, located at shallow depth approximately 1.5 kilometres southeast of Tiriganiaq,
hole M23-3583A intersected 6.4 g/t gold over 16.0 metres at 167 metres depth in the upper
portion of the deposit, hole M22-3473 intersected 9.3 g/t gold over 4.6 metres at 426 metres
depth in the lower portion of the deposit, and hole M22-3477 intersected 6.4 g/t gold over
3.1 metres at 383 metres depth in a previously undrilled area approximately 300 metres beyond
the main mineral resources at F-Zone, further demonstrating the potential to grow the deposit
laterally and at depth |
In light
of the favourable exploration drilling results at Meliadine, the Company has approved a supplemental budget of $7.0 million for the remainder
of 2023 for an additional 25,000 metres of drilling and the extension of the exploration ramp towards the east at Tiriganiaq.
Selected recent exploration drill intercepts
from the Tiriganiaq, Wesmeg, Wesmeg North and F-Zone deposits at the Meliadine property are set out in the plan map, composite longitudinal
section and table below.
[Meliadine Mine – Plan Map & Composite Longitudinal
Section]
Recent selected exploration drill results from Tiriganiaq, Wesmeg,
Wesmeg North and F-Zone deposits at Meliadine
Drill hole | |
Deposit / Lode | |
From (metres) | | |
To (metres) | | |
Depth of
midpoint
below
surface
(metres) | | |
Estimated true
width (metres) | | |
Gold grade (g/t)
(uncapped) | | |
Gold grade (g/t)
(capped) | |
M22-3246 | |
Tiriganiaq / 1000 | |
| 260.5 | | |
| 265.0 | | |
| 204 | | |
| 4.1 | | |
| 9.6 | | |
| 9.6 | |
ML425-9740-D28 | |
Tiriganiaq / 1015 | |
| 336.9 | | |
| 341.1 | | |
| 742 | | |
| 3.7 | | |
| 8.0 | | |
| 8.0 | |
ML400-10030-D8 | |
Wesmeg N / 950 | |
| 182.6 | | |
| 191.8 | | |
| 558 | | |
| 7.4 | | |
| 25.0 | | |
| 6.3 | |
including | |
| |
| 183.5 | | |
| 186.2 | | |
| 556 | | |
| 2.2 | | |
| 79.6 | | |
| 15.8 | |
ML450-9290-D9 | |
Wesmeg N / 922 | |
| 67.1 | | |
| 76.3 | | |
| 484 | | |
| 8.2 | | |
| 6.4 | | |
| 6.4 | |
including | |
| |
| 70.8 | | |
| 76.3 | | |
| 484 | | |
| 4.9 | | |
| 9.2 | | |
| 9.2 | |
ML450-9290-D15 | |
Wesmeg N / 922 | |
| 97.1 | | |
| 103.8 | | |
| 530 | | |
| 4.3 | | |
| 7.6 | | |
| 7.6 | |
ML400-10200-D2 | |
Wesmeg / 650 | |
| 260.4 | | |
| 267.4 | | |
| 453 | | |
| 6.8 | | |
| 6.4 | | |
| 6.4 | |
including | |
| |
| 260.4 | | |
| 263.1 | | |
| 453 | | |
| 2.6 | | |
| 12.3 | | |
| 12.3 | |
ML400-10200-D8 | |
Wesmeg / 650 | |
| 278.4 | | |
| 282.0 | | |
| 531 | | |
| 3.6 | | |
| 18.2 | | |
| 18.2 | |
M22-3477 | |
F-Zone / 4130 | |
| 432.4 | | |
| 435.6 | | |
| 383 | | |
| 3.1 | | |
| 6.4 | | |
| 6.4 | |
M22-3473 | |
F-Zone / 4135 | |
| 459.4 | | |
| 464.4 | | |
| 426 | | |
| 4.6 | | |
| 9.3 | | |
| 9.3 | |
M23-3583A | |
F-Zone / 4120 | |
| 169.8 | | |
| 187.2 | | |
| 167 | | |
| 16.0 | | |
| 7.2 | | |
| 6.4 | |
*Results from the Meliadine mine use capping
factors of 250 g/t gold for Tiriganiaq Lode 1000, 40 g/t gold for iron formations at Wesmeg, 20 to 90 g/t gold at Wesmeg North, and 25
g/t gold at F-Zone.
Meadowbank Complex – Solid Operational
Performance; Modifications Complete to Cemented Rockfill Plant
| |
Three Months
Ended | | |
Six Months
Ended | |
Meadowbank Complex – Operating Statistics | |
Jun 30,
2023 | | |
Jun 30,
2022 | | |
Jun 30,
2023 | | |
Jun 30,
2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 845 | | |
| 930 | | |
| 1,828 | | |
| 1,785 | |
Tonnes of ore milled per day | |
| 9,286 | | |
| 10,220 | | |
| 10,099 | | |
| 9,862 | |
Gold grade (g/t) | |
| 3.79 | | |
| 3.49 | | |
| 3.85 | | |
| 2.94 | |
Gold production (ounces) | |
| 94,775 | | |
| 96,698 | | |
| 205,885 | | |
| 156,463 | |
Production costs per tonne (C$) | |
$ | 186 | | |
$ | 147 | | |
$ | 181 | | |
$ | 145 | |
Minesite costs per tonne (C$) | |
$ | 178 | | |
$ | 135 | | |
$ | 176 | | |
$ | 149 | |
Production costs per ounce of gold produced | |
$ | 1,240 | | |
$ | 1,110 | | |
$ | 1,202 | | |
$ | 1,304 | |
Total cash costs per ounce of gold produced | |
$ | 1,156 | | |
$ | 993 | | |
$ | 1,144 | | |
$ | 1,305 | |
Gold Production
| · | Second
Quarter of 2023 – Gold production decreased when
compared to the prior-year period due to lower processing volumes due to mill shutdowns from
the caribou migration, partially offset by higher gold grades |
| · | First
Six Months of 2023 – Gold production increased
when compared to the prior-year period primarily due to higher gold grades from underground
production and a higher than anticipated grade sequence in the Whale Tail and IVR open pits
in the first quarter of 2023 |
Production Costs
| · | Second
Quarter of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to lower additions to ore stockpiles
in the current year, the start of underground mining at Amaruq and higher fuel costs from
higher fuel prices, partially offset by increased deferred stripping costs. Production costs
per ounce increased when compared to the prior-year period for the same reasons given for
the higher production costs per tonne outlined above, partially offset by higher gold grades
and the weaker Canadian dollar relative to the U.S. dollar |
| · | First
Six Months of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to the same reasons outlined above.
Production costs per ounce decreased when compared to the prior-year period due to higher
gold grades, partially offset by higher production costs per tonne |
Minesite and Total Cash Costs
| · | Second
Quarter of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the same reasons as the second quarter
production costs per tonne. Total cash costs per ounce increased when compared to the prior-year
period due to the same reasons as the second quarter production costs per ounce |
| · | First
Six Months of 2023 – Minesite costs per tonne increased
when compared to the prior-year period primarily due to the factors outlined above regarding
the increase in the production costs per tonne. Total cash costs per ounce decreased when
compared to the prior-year period due to higher gold grades, partially offset by higher minesite
costs per tonne |
Highlights
| · | During
the second quarter of 2023, the longer than usual caribou migration forced road closures
longer than planned, preventing transportation of fuel and ore. The road closures resulted
in production stoppage at the open pit and underground mine, ultimately causing a mill
shut down of approximately 15 days and resulting in 19% less tonnage of ore processed. Higher
gold grade from ore stockpiles partially mitigated the impact of the production stoppage |
| · | The
development rate underground progressed well during the quarter with month over month gains
and development exceeded expectations for the month of June. Modifications to the cemented
rockfill plant were completed as expected midway through the second quarter of 2023 and the
plant achieved better production than targeted during the quarter |
| · | Utilization
of the high pressure grinding rolls continued ramping up and reached its highest daily milling
rate for the quarter since the startup of the high pressure grinding rolls |
AUSTRALIA
Fosterville – Noise Prohibition Lifted;
Fosterville Returns to Normal Operations in June
| |
Three Months
Ended | | |
Six Months
Ended | |
Fosterville Mine – Operating Statistics* | |
Jun 30,
2023 | | |
Jun 30,
2022 | | |
Jun 30,
2023 | | |
Jun 30,
2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 176 | | |
| 122 | | |
| 324 | | |
| 213 | |
Tonnes of ore milled per day | |
| 1,934 | | |
| 1,331 | | |
| 1,790 | | |
| 1,486 | |
Gold grade (g/t) | |
| 14.77 | | |
| 22.24 | | |
| 16.49 | | |
| 24.76 | |
Gold production (ounces) | |
| 81,813 | | |
| 86,065 | | |
| 168,371 | | |
| 167,892 | |
Production costs per tonne (A$) | |
$ | 308 | | |
$ | 597 | | |
$ | 335 | | |
$ | 890 | |
Minesite costs per tonne (A$) | |
$ | 304 | | |
$ | 370 | | |
$ | 321 | | |
$ | 369 | |
Production costs per ounce of gold produced | |
$ | 438 | | |
$ | 561 | | |
$ | 430 | | |
$ | 812 | |
Total cash costs per ounce of gold produced | |
$ | 436 | | |
$ | 351 | | |
$ | 416 | | |
$ | 331 | |
*For the Six Months Ended June 30, 2022, the operating statistics
are reported for the period from February 8, 2022 to June 30, 2022.
Gold Production
| · | Second
Quarter of 2023 – Gold production decreased when compared to the prior-year period
primarily due to lower gold grades from the mining sequence and lower grade than anticipated
in a specific area of the Swan zone, partially offset by higher mill throughput |
| · | First
Six Months of 2023 – Gold production increased slightly when compared to the prior-year
period reflecting a full first quarter of production in 2023 as compared to 51 days in 2022
following the Merger and higher mill throughput, partially offset by lower gold grades |
Production Costs
| · | Second
Quarter of 2023 – Production costs per tonne decreased when compared to the prior-year
period primarily due to the realization in 2022 of fair value adjustments to inventory on
the purchase price allocation. Production costs per ounce decreased when compared to the
prior-year period for the same reasons outlined above, partially offset by lower gold grades |
| · | First
Six Months of 2023 – Production costs per tonne decreased when compared to the prior-year
period due to the same reasons as the decrease to quarterly production costs per tonne. Production
costs per ounce decreased when compared to the prior year period due to the same reasons
as the decrease to quarterly production costs per ounce |
Minesite and Total Cash Costs
| · | Second
Quarter of 2023 – Minesite costs per tonne decreased
when compared to the prior-year period primarily due to higher throughput volumes, partially
offset by higher mining costs from higher consumable prices. Total cash costs per
ounce increased when compared to the prior-year period due to the lower gold grades, partially
offset by lower minesite costs per tonne |
| · | First
Six Months of 2023 – Minesite costs per tonne decreased when compared to the prior-year
period primarily due the same reasons outlined above. Total cash costs per ounce increased
primarily due to lower gold grades and higher consumable prices |
Highlights
| · | On
May 29, 2023 the Victorian EPA lifted the prohibition notice on Fosterville with respect
to low frequency noise that was imposed in late 2021, which restricted underground activities
from midnight to 6 a.m. The Fosterville mine returned to full operating hours in June,
with the additional resources focused on advancing delayed mine development and upgrading
of the primary ventilation system |
| · | In the second quarter of 2023, Fosterville encountered lower grade than anticipated, reflecting the variability
in the high grade nature of the mineralization |
| · | In the second quarter of 2023, work continued on the raise of the flotation tailings storage facility
which is now more than 95% complete with minor delays experienced in the second quarter due to wet conditions. The raise is expected to
provide an additional 17 months of tailings storage capacity and is scheduled to be completed in August |
Exploration
Highlights
Exploration
drilling at Fosterville during the second quarter of 2023 totaled 20,565 metres and mainly targeted the Lower Phoenix deep extension from
the 3912 drill drive and the Robbins Hill area. Exploration results will be reported later in the year.
FINLAND
Kittila – Strong Operational Performance
from Underground Mine; Major Projects Nearing Completion
| |
Three Months Ended | | |
Six Months Ended | |
Kittila Mine – Operating Statistics | |
Jun 30, 2023 | | |
Jun 30, 2022 | | |
Jun 30, 2023 | | |
Jun 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 417 | | |
| 556 | | |
| 913 | | |
| 1,017 | |
Tonnes of ore milled per day | |
| 4,582 | | |
| 6,110 | | |
| 5,044 | | |
| 5,619 | |
Gold grade (g/t) | |
| 4.42 | | |
| 4.35 | | |
| 4.59 | | |
| 4.01 | |
Gold production (ounces) | |
| 50,130 | | |
| 64,814 | | |
| 113,822 | | |
| 110,322 | |
Production costs per tonne (EUR) | |
€ | 101 | | |
€ | 89 | | |
€ | 100 | | |
€ | 92 | |
Minesite costs per tonne (EUR) | |
€ | 104 | | |
€ | 88 | | |
€ | 101 | | |
€ | 89 | |
Production costs per ounce of gold produced | |
$ | 864 | | |
$ | 823 | | |
$ | 849 | | |
$ | 932 | |
Total cash costs per ounce of gold produced | |
$ | 899 | | |
$ | 828 | | |
$ | 847 | | |
$ | 915 | |
Gold Production
| · | Second Quarter of 2023 – Gold production decreased when compared to the prior-year period primarily
due to lower mill throughput from fewer processing days from the planned 10-day autoclave maintenance |
| · | First Six Months of 2023 – Gold production increased when compared to the prior-year period primarily
due to higher gold grades, partially offset by lower mill throughput from the maintenance activities described above |
Production Costs
| · | Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period
primarily due to higher mill maintenance costs from the autoclave shutdown and higher materials costs in underground mining, partially
offset by the buildup of stockpile inventory. Production costs per ounce increased when compared to the prior-year period due to the higher
production costs per tonne, partially offset by the timing of inventory sales and higher gold grades |
| · | First Six Months of 2023 – Production costs per tonne increased when compared to the prior-year
period primarily due the same reasons outlined above. Production costs per ounce decreased when compared to the prior-year period due
to higher gold grades and the timing of inventory sales, partially offset by the higher production costs per tonne |
Minesite and Total Cash Costs
| · | Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to the same reasons for the increase in the production costs per tonne. Total cash costs per ounce increased when compared
to the prior-year period due to higher minesite costs per tonne, partially offset by higher gold grades |
| · | First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to the same reasons for the increase in quarterly production costs per tonne. Total cash costs per ounce decreased when
compared to the prior-year period due to higher gold grades, partially offset by higher minesite costs per tonne |
Highlights
| · | In the second quarter of 2023, Kittila continued to deliver a strong operational performance, with several
critical projects either finished or nearing completion. At the mill, the nitrogen removal plant, which was commissioned in the first
quarter of 2023, is operating effectively. At the mine, efforts are concentrated on ramping up hoist capacity and the commissioning of
the service hoist which is expected to be completed in the third quarter of 2023. Progress on the main level is ahead of schedule, with
two maintenance bays already operational, showcasing a positive trend in development |
| · | The costs of electricity at the Kittila mine in the second quarter of 2023 has experienced a decreasing
trend |
| · | Kittila hosted the SAC for a site visit in the second quarter of 2023 as part of the review of the current
permit limitation. The Company expects a final decision from the SAC in the third quarter of 2023. Until then, the Company continues to
rely on the current mining permit of 1.6 Mtpa while maintaining operational flexibility to reach the 2.0 Mtpa volume. If the SAC reverses
the lower court ruling and reinstates the operating permit at 2.0 Mtpa, the Company expects Kittila to produce up to 30,000 ounces of
additional gold in the second half of 2023 as compared to current guidance. If the SAC upholds the lower court decision and maintains
the current operating permit at 1.6 Mtpa, the Company would be required to scale back operations during the fourth quarter of 2023 to
remain within the permitted rate |
Exploration Highlights
Exploration drilling at Kittila during the second
quarter of 2023 totaled 21,206 metres and mainly targeted the Main and Sisar zones in the northern and southern portions of the deposit
at approximately 1.0 to 1.4 kilometres depth.
| · | To the north in the Rimpi area, highlight intersections in the Main Zone outside the current mineral resources
include hole RIE23-603 returning 5.7 g/t gold over 5.4 metres at 1,094 metres depth and hole RIE23-607 returning 6.0 g/t gold over 4.9
metres at 1,098 metres depth and 7.2 g/t gold over 4.5 metres at 1,102 metres depth in the steep plunge extension of the Main Zone lens,
demonstrating the potential to further extend the mineralization at depth |
| · | To the south in the Roura area outside the current mineral resources, highlight intersections in the Main
Zone include hole ROU23-602 returning 6.0 g/t gold over 4.8 metres at 1,174 metres depth and 8.5 g/t gold over 5.5 metres at 1,194 metres
depth, and hole ROD23-700 returning 7.7 g/t gold over 7.3 metres at 1,152 metres depth, further confirming the potential to extend the
Main Zone at depth near the bottom of the new shaft |
| · | Hole STEC22-005 intersected 3.1 g/t gold over 4.5 metres at 142 metres depth in the first intercept of
the Sisar Zone at shallow depth in the Rimpi area, opening up a new target area for further exploration |
Selected recent drill results from Kittila are
set out in the composite longitudinal section and the table below.
[Kittila Mine – Composite Longitudinal
Section]
Recent selected exploration drill results from Main and Sisar zones
at Kittila
Drill hole | |
Zone / Area | |
From (metres) | | |
To (metres) | | |
Depth of
midpoint below
surface
(metres) | | |
Estimated true width (metres) | | |
Gold grade (g/t)
(uncapped)* | |
RIE23-603 | |
Main Rimpi | |
| 159.0 | | |
| 166.0 | | |
| 1,094 | | |
| 5.4 | | |
| 5.7 | |
RIE23-607 | |
Main Rimpi | |
| 156.2 | | |
| 163.8 | | |
| 1,098 | | |
| 4.9 | | |
| 6.0 | |
and | |
Main Rimpi | |
| 176.0 | | |
| 182.8 | | |
| 1,102 | | |
| 4.5 | | |
| 7.2 | |
ROD23-700 | |
Main Roura | |
| 160.0 | | |
| 175.4 | | |
| 1,152 | | |
| 7.3 | | |
| 7.7 | |
ROU23-602 | |
Main Roura | |
| 189.5 | | |
| 200.0 | | |
| 1,174 | | |
| 4.8 | | |
| 6.0 | |
| |
Main Roura | |
| 212.0 | | |
| 223.0 | | |
| 1,194 | | |
| 5.5 | | |
| 8.5 | |
STEC22-005 | |
Sisar Top | |
| 150.0 | | |
| 156.0 | | |
| 142 | | |
| 4.5 | | |
| 3.1 | |
* Results from the Kittila mine are uncapped.
MEXICO
Pinos Altos – Production and Development
Higher Than Planned
| |
Three Months Ended | | |
Six Months Ended | |
Pinos Altos Mine – Operating Statistics | |
Jun 30, 2023 | | |
Jun 30, 2022 | | |
Jun 30, 2023 | | |
Jun 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 401 | | |
| 366 | | |
| 765 | | |
| 750 | |
Tonnes of ore milled per day | |
| 4,407 | | |
| 4,022 | | |
| 4,227 | | |
| 4,144 | |
Gold grade (g/t) | |
| 1.80 | | |
| 2.02 | | |
| 1.97 | | |
| 2.08 | |
Gold production (ounces) | |
| 22,159 | | |
| 23,020 | | |
| 46,293 | | |
| 48,190 | |
Production costs per tonne | |
$ | 87 | | |
$ | 109 | | |
$ | 88 | | |
$ | 97 | |
Minesite costs per tonne | |
$ | 90 | | |
$ | 101 | | |
$ | 91 | | |
$ | 94 | |
Production costs per ounce of gold produced | |
$ | 1,566 | | |
$ | 1,732 | | |
$ | 1,461 | | |
$ | 1,503 | |
Total cash costs per ounce of gold produced | |
$ | 1,282 | | |
$ | 1,383 | | |
$ | 1,196 | | |
$ | 1,224 | |
Gold Production
| · | Second Quarter of 2023 – Gold production decreased slightly when
compared to the prior-year period primarily due to lower gold grades from the mining sequence, mostly offset by higher mill throughput
levels |
| · | First Six Months of 2023 – Gold production decreased when
compared to the prior-year period primarily due to lower gold grades from the mining sequence, partially offset by higher mill throughput
levels |
Production Costs
| · | Second Quarter of 2023 – Production costs per tonne decreased
when compared to the prior-year period primarily due to lower underground rehab requirements, the timing of inventory sales and lower
deferred stripping adjustment, partially offset by higher open pit production costs. Production costs per ounce decreased when compared
to the prior-year period due to the lower production costs per tonne, partially offset by lower gold grades |
| · | First
Six Months of 2023 – Production costs per tonne decreased
when compared to the prior-year period primarily due to lower rehab requirements in the underground
mine, higher deferred stripping and a favourable stockpile adjustment. Production costs per
ounce in the first six months of 2023 decreased when compared to the prior-year period due
to lower production costs per tonne, an appreciating Mexican peso relative to the U.S. dollar
and lower gold grades |
Minesite and Total Cash Costs
| · | Second Quarter of 2023 – Minesite costs per tonne decreased when compared to the prior-year period
primarily due to the same reasons for the increase in the production costs per tonne. Total cash costs per ounce in the second quarter
of 2023 decreased when compared to the prior-year period due to the lower minesite costs per tonne and higher by-product revenues from
higher silver sales, partially offset by lower gold grades |
| · | First Six Months of 2023 – Minesite costs per tonne decreased when compared to the prior-year period
primarily due to the reasons outlined above. Total cash costs per ounce in the first six months of 2023 decreased when compared to the
prior-year period due to lower minesite costs per tonne and higher by-product revenues from higher
silver sales, partially offset by lower gold grades |
Highlights
| · | Both gold and silver production at the Pinos Altos complex were higher than planned as a result of solid
mining performance in both the underground and open pit operations |
La India – Production in Line With Targets
in the Second Quarter of 2023; Work Continues to Reduce Cyanide Consumption and Improve Leach Kinetics
| |
Three Months Ended | | |
Six Months Ended | |
La India Mine – Operating Statistics | |
Jun 30, 2023 | | |
Jun 30, 2022 | | |
Jun 30, 2023 | | |
Jun 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| 880 | | |
| 1,356 | | |
| 1,540 | | |
| 2,919 | |
Tonnes of ore milled per day | |
| 9,670 | | |
| 14,901 | | |
| 8,508 | | |
| 16,127 | |
Gold grade (g/t) | |
| 0.74 | | |
| 0.52 | | |
| 0.72 | | |
| 0.55 | |
Gold production (ounces) | |
| 17,833 | | |
| 20,016 | | |
| 34,154 | | |
| 41,718 | |
Production costs per tonne | |
$ | 27 | | |
$ | 13 | | |
$ | 28 | | |
$ | 12 | |
Minesite costs per tonne | |
$ | 28 | | |
$ | 14 | | |
$ | 30 | | |
$ | 13 | |
Production costs per ounce of gold produced | |
$ | 1,326 | | |
$ | 872 | | |
$ | 1,281 | | |
$ | 844 | |
Total cash costs per ounce of gold produced | |
$ | 1,385 | | |
$ | 936 | | |
$ | 1,348 | | |
$ | 876 | |
Gold Production
| · | Second Quarter of 2023 – Gold production decreased when compared to the prior-year period as a result
of lower tonnes placed on the heap leach, partially offset by higher gold grades |
| · | First Six Months of 2023 – Gold production decreased when
compared to the prior-year period primarily due to the same reasons outlined above |
Production Costs
| · | Second Quarter of 2023 – Production costs per tonne increased when compared to the prior-year period
primarily due to fewer tonnes placed on the heap leach and higher open pit production costs resulting from a higher strip ratio with the
transition from the Main pit to the El Realito pit. Production costs per ounce increased when compared to the prior-year period due to
the same reasons outlined above, partially offset by higher gold grades |
| · | First Six Months of 2023 – Production costs per tonne increased
when compared to the prior-year period primarily due to the same reasons outlined above. Production costs per ounce increased when compared
to the prior-year period due to higher production costs per tonne, partially offset by higher gold grades |
Minesite and Total Cash Costs
| · | Second Quarter of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to the reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period due to the same
reasons as the higher production costs per ounce |
| · | First Six Months of 2023 – Minesite costs per tonne increased when compared to the prior-year period
primarily due to reasons outlined above. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons
as the increase in production costs per ounce |
Highlights
| · | Open pit mining and crusher operations are expected to be concluded in the fourth quarter of 2023 |
About Agnico Eagle
Agnico Eagle is a senior Canadian gold
mining company, producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of
high-quality exploration and development projects in these countries as well as in the United States. Agnico Eagle is a partner of
choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The Company
was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
Further Information
For further information regarding Agnico Eagle,
contact Investor Relations at investor.relations@agnicoeagle.com or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain financial
performance measures, including "total cash costs per ounce", "all-in sustaining costs per ounce", "minesite
costs per tonne", "net debt", "adjusted net income", "adjusted net income per share", "sustaining
capital expenditures", "development capital expenditures" and "operating margin" that are not standardized measures
under IFRS. These measures may not be comparable to similar measures reported by other gold mining companies. For a reconciliation of
these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance
with IFRS, other than adjusted net income, see "Reconciliation of Non-GAAP Financial Performance Measures" below.
The total cash costs per ounce of gold produced
also referred to as "total cash cost per ounce" 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). The total cash costs per ounce of gold produced
on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product
revenues, inventory production costs, the impact of purchase price allocation in connection with mergers and acquisitions to inventory
accounting, realized gains and losses on hedges of production costs, operational care and maintenance costs due to COVID-19 and other
adjustments, which include the costs associated with a 5% in-kind royalty paid in respect of certain portions of the Canadian Malartic
complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, as
well as smelting, refining and marketing charges and then dividing by the number of ounces of gold produced. Certain line items such as
operational care and maintenance costs due to COVID-19 and realized gains and losses on hedges of production costs were previously classified
as "other adjustments" and are now disclosed separately to provide additional detail on the reconciliation, allowing investors
to better understand the impacts of such events on the cash operating costs per ounce and minesite costs per tonne. In addition, given
the extraordinary nature of the fair value adjustment on inventory related to mergers and acquisitions and the use of the total cash costs
per ounce measure to reflect the cash generating capabilities of the Company's operations, the calculation of total cash costs per ounce
for the Detour, Macassa and Fosterville mines have been adjusted for this purchase price allocation in the comparative period data and
for the Canadian Malartic complex in the three and six months ended June 30, 2023. The total cash costs per ounce of gold produced
on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced 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 of gold produced
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. The total cash costs per ounce of gold produced is intended to provide information about the
cash-generating capabilities of the Company's mining operations. Management also uses these measures to, and believes they are helpful
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 of gold produced 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 of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent
limitations by using, and investors should also consider, these measures in conjunction with minesite costs per tonne as well as other
data prepared in accordance with IFRS. Management also performs sensitivity analysis in order to quantify the effects of fluctuating metal
prices and exchange rates. 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. These measures also do not include depreciation or amortization.
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.
In this press release, unless otherwise indicated,
total cash costs per ounce of gold produced is reported on a by-product basis. Total cash costs per ounce of gold produced 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. Investors
should also consider these measures in conjunction with other data prepared in accordance with IFRS.
In this press release, unless otherwise
indicated, all-in sustaining costs per ounce of gold produced is reported on a by-product basis. All-in sustaining costs per ounce
of gold produced (also referred to as "all-in sustaining costs 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 of gold produced on a co-product basis is calculated in the
same manner as the AISC per ounce of gold produced 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. AISC per ounce seeks to reflect total sustaining expenditures of
producing and selling an ounce of gold while maintaining current operations. 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 total cash
costs per ounce and AISC of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent
limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with
IFRS. 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. This measure also does not include depreciation or amortization.
The
World Gold Council ("WGC") is a non-regulatory market development organization for the gold industry. Although the WGC is not
a mining industry regulatory organization, it has worked closely with its member companies to develop relevant non-GAAP measures. The
Company follows the guidance on all-in sustaining costs released by the WGC in November 2018. Adoption of the AISC metric is voluntary
and, notwithstanding the Company's adoption of the WGC's guidance, AISC per ounce of gold produced reported by the Company may not be
comparable to data reported by other gold mining companies. The Company
believes that this measure provides helpful information about operating performance. However, this non-GAAP measure should be considered
together with other data prepared in accordance with IFRS as it is not necessarily indicative of operating costs or cash flow measures
prepared in accordance with IFRS.
Minesite costs per tonne are calculated by adjusting
production costs as recorded in the consolidated statements of income (loss) for inventory production costs, operational care and maintenance
costs due to COVID-19, and other adjustments, and then dividing by tonnage of ore processed. As the total cash costs per ounce of gold
produced can be affected by fluctuations in by-product metal prices and foreign exchange rates, management believes, and investors
should note, 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 prepared in accordance with IFRS.
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 consolidated balance sheet 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 future debt capacity of the Company.
Adjusted net income and adjusted net income per
share are calculated by adjusting the net income as recorded in the consolidated statements of income (loss) for the effects of certain
non-recurring, unusual and other 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 foreign currency translation gains or losses, realized and unrealized
gains or losses on derivative financial instruments, revaluation gain, impairment loss charges and reversals, environmental remediation,
severance and transaction costs related to acquisitions, purchase price allocations to inventory, income and mining taxes adjustments
as well as other items (which includes changes in estimates of asset retirement obligations at closed sites and gains and losses on the
disposal of assets, self-insurance losses, multi-year donations and integration costs). Adjusted net income per share is calculated by
dividing adjusted net income by the number of shares outstanding on a basic and diluted basis. The Company believes that these generally
accepted industry measures are useful 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 are not reflective of
operational performance. Management uses this measure to, and believes it is helpful 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.
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 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; revaluation gain and impairment losses (reversals). The Company believes that operating margin is a useful
measure that represents 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. This measure is intended to provide investors with additional
information about the Company's underlying operating results and should be evaluated in conjunction with other data prepared in accordance
with IFRS.
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 the 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
represents the spending at new projects and/or expenditure at existing operations that is 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.
This news release also contains information as
to estimated future total cash costs per ounce, AISC per ounce and minesite costs per tonne. The estimates are based upon the total cash
costs per ounce, AISC per ounce and minesite costs per tonne 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 July 26, 2023. 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",
"could", "estimate", "expect", "forecast", "future", "plan", "possible",
"potential", "schedule", "target", "tracking", "will", and similar expressions are
intended to identify forward-looking statements. Such statements include, without limitation: the Company's forward-looking guidance,
including metal production, estimated ore grades, statements regarding or relating to 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 Kittila, the AK deposit and Upper Beaver; the estimated timing and conclusions of technical
studies and evaluations; the methods by which ore will be extracted or processed; the Company's expansion plans at Detour, Kittila, Meliadine
Phase 2, the Amaruq underground project and the Odyssey project, including the timing, funding, completion and commissioning thereof
and production therefrom; the Company's plans at the Hope Bay project; statements about the Company's plans at the Wasamac project; statements
concerning other expansion projects, recovery rates, mill throughput, optimization 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 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 and the anticipated
timing thereof; operations at and expansion of the Kitilla mine following the decision of the Finish courts and administrative bodies;
future exploration; the anticipated timing of events with respect to the Company's mine sites; 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 and the Term Loan Facility; the NCIB; future dividend amounts and payment dates;
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,
2022 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31,
2022 ("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 environmental and water
permits granted for the Kittila mine are restored by the SAC in its final decision and the decisions of the Finish courts and administrative
bodies have no material impact on the Kittila mine's operations; 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; the ability
to realize the anticipated benefits of the Merger or implementing the business plan for the combined company, including as a result of
difficulty in integrating the businesses of the companies involved; the ability to realize synergies from the Merger and Yamana Transaction
and cost savings at the times, and to the extent, anticipated; 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 and other properties is as expected by the Company and that the
Company's efforts to mitigate its effect on mining operations 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 additional measures in response to the COVID-19 pandemic or otherwise that, individually or in the aggregate, materially
affect the Company's ability to operate its business; that cautionary measures taken in connection with the COVID-19 pandemic do not
affect productivity; and that measures taken relating to, or other effects of, the COVID-19 pandemic 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 the LaRonde complex and Goldex mine; mining risks; community protests, including by First Nations
groups; risks associated with foreign operations; 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 ability to realize the anticipated
benefits of the Merger or implementing the business plan for Agnico Eagle following the Merger, including as a result of a delay or difficulty
in integrating the businesses of the companies involved; the ability to realize the anticipated benefits of the Yamana Transaction; the
ability to realize the anticipated benefits of the San Nicolás transaction; the extent and manner to which COVID-19, and measures
taken by governments, the Company or others to attempt to reduce the spread of COVID-19 may affect the Company, whether directly or through
effects on employee health, workforce productivity and availability (including the ability to transport personnel to fly-in/fly-out camps),
travel restrictions, contractor availability, supply availability, ability to sell or deliver gold dore bars or concentrate, availability
of insurance and the cost thereof, the ability to procure inputs required for the Company's operations and projects or other aspects
of the Company's business; and uncertainties with respect to the effect on the global economy associated with the COVID-19 pandemic and
measures taken to reduce the spread of COVID-19, any of which could negatively affect financial markets, including the trading price
of the Company's shares and the price of gold, and could adversely affect the Company's ability to raise capital. 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 the AIF 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").
Effective February 25, 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 now
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.
Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies,
except in limited circumstances. 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.
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 and 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, 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.
Assumptions used for the December 31,
2022 mineral reserve and mineral resource estimates reported by the Company
Metal
Price for Mineral Reserve Estimation1 |
| Gold (US$/oz) | | |
| Silver (US$/oz) | | |
| Copper (US$/lb) | | |
| Zinc (US$/lb) | |
$ | 1,300 | | |
$ | 18 | | |
$ | 3.00 | | |
$ | 1.00 | |
1 Exceptions: US$1,350 per ounce
of gold used for Hope Bay and Hammond Reef; US$1,250 per ounce of gold used for Akasaba West; US$1,200 per ounce of gold and US$2.75 per
pound of copper used for Upper Beaver
| |
| Metal Price for Mineral Resource Estimation5 | |
Mines / Projects | |
| Gold (US$/oz) | | |
| Silver (US$/oz) | | |
| Copper (US$/lb) | | |
| Zinc (US$/lb) | |
Operating mines held by Kirkland Lake Gold before the Merger1 | |
$ | 1,500 | | |
| - | | |
| - | | |
| - | |
Operating mines held by Agnico Eagle Mines before the Merger2 | |
$ | 1,625 | | |
$ | 22.50 | | |
$ | 3.75 | | |
$ | 1.25 | |
Pipeline projects | |
$ | 1,688 | 3 | |
$ | 25.00 | 4 | |
$ | 3.75 | | |
$ | 1.25 | |
1 Detour,
Macassa, Fosterville, Northern Territory
2 LaRonde,
LZ5, Goldex, Amaruq, Meliadine, Kittila, La India, Pinos Altos
3 Hope
Bay, Anoki-McBean, Hammond Reef, Chipriona, Tarachi, Santa Gertrudis
4 Chipriona,
Santa Gertrudis
5 Exceptions:
US$1,667 per ounce of gold used for Canadian Malartic, Odyssey, Akasaba West, Upper Canada, El Barqueno Gold; US$1,533 per ounce of gold
used for Barsele; US$500 per ounce of gold used for Aquarius. US$22.67 per ounce of silver El Barqueno Silver
Exchange rates1 |
C$ per US$1.00 | | |
Mexican peso per US$1.00 | |
AUD per US$1.00 | |
US$ per €1.00 |
$ | 1.30 | | |
MXP18.00 | |
AUD1.36 | |
EUR1.10 |
1 Exceptions: exchange
rate of CAD$1.25 per US$1.00 used for Upper Beaver, Upper Canada and Holt complex, Detour
Zone 58N; CAD$1.11 per US$1.00 used for Aquarius; US$1.00 per EUR $1.15 used for Barsele
The above metal price assumptions are below the three-year historic
gold and silver price averages (from January 1, 2020 to December 31, 2022) of approximately $1,790 per ounce and $22.48 per
ounce, respectively.
Mineral reserves are reported exclusive of mineral
resources. Tonnage amounts and contained metal amounts set out in this table have been rounded to the nearest thousand, so may not aggregate
to equal column totals. Mineral reserves are in-situ, taking into account all mining recoveries, before mill or heap leach recoveries.
Underground mineral reserves and measured and indicated mineral resources are reported within mineable shapes and include internal and
external dilution. Inferred mineral resources are reported within mineable shapes and include internal dilution. Mineable shape optimization
parameters may differ for mineral reserves and mineral reserves.
The mineral reserves and mineral resources tonnages
reported for silver, copper and zinc are a subset of the mineral reserves and mineral resources tonnages for gold. The Company's economic
parameters follow the method accepted by the SEC by setting the maximum price allowed to be no more than the lesser of the three-year
moving average and current spot price, which is a common industry standard. Given the current commodity price environment, Agnico Eagle
continues to use more conservative gold and silver prices.
NI 43-101 requires mining companies to disclose
mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves",
"measured mineral resources", "indicated mineral resources" and "inferred mineral resources". Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable
part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the
material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application
of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified. The mineral reserves
presented in this news release are separate from and not a portion of the mineral resources.
Modifying factors are considerations used to convert
mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic,
marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable
part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable
mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence
in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence
of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics
of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence
sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic
viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is
sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is
that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated
with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of
observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated
on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and
grade or quality continuity.
Investors are cautioned not to assume that
part or all of an inferred mineral resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical
and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable
modifying factors, together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate,
at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve
as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project.
The confidence level of the study will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the Company's
material mineral projects as at June 30, 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: 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); the Detour Lake Operation, Ontario, Canada NI 43-101 Technical
Report as at July 26, 2021 (October 15, 2021); and the Updated NI 43-101 Technical Report Fosterville Gold Mine in the State
of Victoria, Australia as at December 31, 2018 (April 1, 2019).
APPENDIX
Recent
selected exploration drill results from South Zone and W Zone at Goldex
Drill
hole |
Location |
From
(metres) |
To
(metres) |
Depth
of
midpoint
below
surface
(metres) |
Estimated
true width
(metres) |
Gold
grade
(g/t)
(uncapped) |
Gold
grade
(g/t)
(capped)* |
GD135-052 |
South
Zone - Sector 3 |
174.0 |
189.0 |
1,284 |
7.0 |
5.4 |
5.4 |
GD135-065 |
South
Zone - Sector 3 |
155.0 |
172.0 |
1,376 |
8.0 |
19.4 |
12.9 |
GD138-009 |
South
Zone - Sector 3 |
221.0 |
235.0 |
1,427 |
6.0 |
5.4 |
5.4 |
GD27-056 |
W
Zone |
529.5 |
574.5 |
496 |
25.0 |
1.2 |
1.2 |
and |
W
Zone |
702.0 |
718.5 |
575 |
9.0 |
7.3 |
7.3 |
GD27-057 |
W
Zone |
288.0 |
301.5 |
320 |
6.0 |
3.7 |
3.7 |
*Results
from South Zone and W Zone at Goldex use capping factors of 60 g/t gold and 50 g/t gold, respectively.
EXPLORATION
DRILL COLLAR COORDINATES
Drill
hole |
UTM
East* |
UTM
North* |
Elevation
(metres above
sea level) |
Azimuth
(degrees) |
Dip
(degrees) |
Length
(metres) |
Goldex |
GD135-052 |
285873 |
5331634 |
-1,056 |
69 |
19 |
213 |
GD135-065 |
285872 |
5331633 |
-1,056 |
58 |
-12 |
231 |
GD138-009 |
285849 |
5331512 |
-1,066 |
38 |
-19 |
348 |
GD27-056 |
286120 |
5330643 |
74 |
307 |
-30 |
879 |
GD27-057 |
286120 |
5330643 |
74 |
311 |
-20 |
633 |
Detour
Lake |
DLM23-598W |
586875 |
5542118 |
303 |
173 |
-66 |
1,302 |
DLM23-604 |
589309 |
5541462 |
283 |
181 |
-66 |
675 |
DLM23-612 |
589227 |
5541591 |
283 |
180 |
-59 |
750 |
DLM23-616 |
589267 |
5541626 |
283 |
180 |
-52 |
695 |
DLM23-620 |
586560 |
5541975 |
293 |
184 |
-68 |
1,152 |
DLM23-628 |
589227 |
5541550 |
283 |
179 |
-58 |
675 |
DLM23-629 |
588609 |
5541481 |
285 |
178 |
-58 |
687 |
DLM23-632 |
588128 |
5541642 |
287 |
177 |
-56 |
801 |
DLM23-633 |
588327 |
5541610 |
287 |
178 |
-54 |
675 |
DLM23-644 |
587843 |
5541810 |
286 |
175 |
-61 |
792 |
DLM23-646 |
587551 |
5542302 |
291 |
181 |
-64 |
1,335 |
DLM23-648 |
587965 |
5541885 |
286 |
175 |
-61 |
1,002 |
DLM23-652A |
587483 |
5541875 |
286 |
173 |
-59 |
255 |
DLM23-654A |
587351 |
5542074 |
289 |
175 |
-66 |
951 |
DLM23-662A |
587203 |
5541839 |
301 |
177 |
-73 |
1,058 |
DLM23-665 |
585309 |
5542525 |
295 |
190 |
-61 |
1,458 |
DLM23-666 |
586885 |
5541753 |
297 |
175 |
-59 |
801 |
DLM23-667CW |
586954 |
5542188 |
297 |
186 |
-69 |
1,500 |
DLM23-670CW |
587281 |
5541950 |
298 |
171 |
-64 |
1,076 |
DLM23-678 |
587003 |
5541858 |
307 |
176 |
-63 |
702 |
DLM23-689 |
585993 |
5542344 |
299 |
190 |
-69 |
1,260 |
DLM23-690 |
586477 |
5542144 |
296 |
185 |
-68 |
1,137 |
DLM23-693 |
586159 |
5542015 |
291 |
183 |
-68 |
972 |
Macassa |
53-4732 |
567236 |
5332944 |
-1258 |
303 |
-59 |
716 |
53-4733 |
567235 |
5332944 |
-1256 |
314 |
-42 |
594 |
57-1386 |
568426 |
5331284 |
-1405 |
183 |
4 |
235 |
57-1387 |
568427 |
5331284 |
-1405 |
191 |
14 |
317 |
58-833 |
567802 |
5332584 |
-1510 |
349 |
-29 |
274 |
58-839 |
567803 |
5332584 |
-1510 |
336 |
-22 |
259 |
KLAK-186 |
567487 |
5331787 |
108 |
199 |
-29 |
155 |
KLAK-206 |
567486 |
5331787 |
108 |
192 |
-36 |
171 |
Meliadine |
M22-3246 |
541050 |
6988544 |
70 |
198 |
-61 |
319 |
ML425-9740-D28 |
539732 |
6988907 |
-394 |
174 |
-64 |
355 |
ML400-10030-D8 |
539971 |
6988460 |
-29 |
183 |
-63 |
418 |
ML450-9290-D9 |
539290 |
6988466 |
-372 |
206 |
-44 |
164 |
ML450-9290-D15 |
539291 |
6988466 |
-371 |
120 |
-78 |
252 |
ML400-10200-D2 |
540223 |
6988459 |
-318 |
169 |
-14 |
336 |
ML400-10200-D8 |
540224 |
6988459 |
-318 |
162 |
-33 |
375 |
M22-3477 |
543080 |
6986524 |
10,057 |
206 |
-65 |
498 |
M22-3473 |
542520 |
6986738 |
10,064 |
212 |
-73 |
544 |
Hope
Bay |
HBBCO23-153 |
433490 |
7559620 |
406 |
112 |
10 |
417 |
HBBCO23-154 |
433555 |
7559740 |
388 |
127 |
-48 |
504 |
HBD23-071 |
433113 |
7558515 |
34 |
73 |
-61 |
1,068 |
HBM23-086 |
435581 |
7548394 |
26 |
240 |
-58 |
992 |
HBM23-091 |
435183 |
7547960 |
26 |
84 |
-66 |
666 |
HBM23-095 |
435564 |
7548420 |
26 |
231 |
-54 |
871 |
HBM23-105 |
435438 |
7548956 |
26 |
240 |
-58 |
912 |
Kittila |
RIE23-603 |
2558675 |
7539402 |
-842 |
55 |
-12 |
561 |
RIE23-607 |
2558673 |
7539402 |
-842 |
43 |
-13 |
286 |
ROD23-700 |
2558703 |
7537464 |
-786 |
90 |
-60 |
732 |
ROU23-602 |
2558712 |
7537565 |
-790 |
77 |
-58 |
566 |
STEC22-005 |
2558662 |
7538959 |
99 |
130 |
-10 |
181 |
*Coordinate
Systems: NAD 1983 UTM Zone 18N for Goldex; NAD 1983 UTM Zone 17N for Detour Lake, Macassa and AK deposit; NAD 1983 UTM Zone 14N for Meliadine;
NAD 1983 UTM Zone 13N for Hope Bay; Finnish Coordinate System KKJ Zone 2 for Kittila.
APPENDIX
– FINANCIAL INFORMATION
AGNICO
EAGLE MINES LIMITED |
SUMMARY
OF OPERATIONS KEY PERFORMANCE INDICATORS |
(thousands
of United States dollars, except where noted) |
|
| |
| | |
| | |
| | |
| |
| |
Three
Months Ended June 30, | | |
Six
Months Ended June 30, | |
| |
| 2023 | | |
| 2022(i) | | |
| 2023 | | |
| 2022 | |
Operating
margin(ii): | |
| | | |
| | | |
| | | |
| | |
Revenues
from mining operations | |
$ | 1,718,197 | | |
$ | 1,581,058 | | |
$ | 3,227,858 | | |
$ | 2,906,746 | |
Production
costs | |
| 743,253 | | |
| 657,636 | | |
| 1,396,397 | | |
| 1,319,371 | |
Total operating
margin(ii) | |
| 974,944 | | |
| 923,422 | | |
| 1,831,461 | | |
| 1,587,375 | |
Operating
margin(ii) by mine: | |
| | | |
| | | |
| | | |
| | |
Quebec | |
| | | |
| | | |
| | | |
| | |
LaRonde
mine | |
| 69,896 | | |
| 90,877 | | |
| 132,409 | | |
| 194,441 | |
LaRonde
Zone 5 mine | |
| 14,795 | | |
| 7,866 | | |
| 22,093 | | |
| 24,522 | |
Canadian
Malartic complex(iii) | |
| 191,681 | | |
| 104,461 | | |
| 272,464 | | |
| 183,763 | |
Goldex
mine | |
| 45,112 | | |
| 41,656 | | |
| 85,340 | | |
| 78,774 | |
Ontario | |
| | | |
| | | |
| | | |
| | |
Detour
Lake mine | |
| 204,272 | | |
| 214,841 | | |
| 396,845 | | |
| 342,899 | |
Macassa
mine | |
| 74,334 | | |
| 74,778 | | |
| 154,234 | | |
| 98,933 | |
Nunavut | |
| | | |
| | | |
| | | |
| | |
Meliadine
mine | |
| 78,362 | | |
| 96,740 | | |
| 166,702 | | |
| 181,019 | |
Meadowbank
complex | |
| 78,368 | | |
| 68,044 | | |
| 158,177 | | |
| 62,846 | |
Hope
Bay project | |
| — | | |
| — | | |
| — | | |
| 144 | |
Australia | |
| | | |
| | | |
| | | |
| | |
Fosterville
mine | |
| 132,243 | | |
| 125,442 | | |
| 264,945 | | |
| 232,298 | |
Europe | |
| | | |
| | | |
| | | |
| | |
Kittila
mine | |
| 59,532 | | |
| 67,611 | | |
| 122,256 | | |
| 113,722 | |
Mexico | |
| | | |
| | | |
| | | |
| | |
Pinos
Altos mine | |
| 15,680 | | |
| 11,487 | | |
| 34,206 | | |
| 30,918 | |
Creston
Mascota mine | |
| — | | |
| 642 | | |
| — | | |
| 1,819 | |
La
India mine | |
| 10,669 | | |
| 18,977 | | |
| 21,790 | | |
| 41,277 | |
Total operating
margin(ii) | |
| 974,944 | | |
| 923,422 | | |
| 1,831,461 | | |
| 1,587,375 | |
Amortization
of property, plant and mine development | |
| 381,262 | | |
| 269,891 | | |
| 685,221 | | |
| 525,535 | |
Revaluation
gain(iv) | |
| — | | |
| — | | |
| (1,543,414 | ) | |
| — | |
Exploration,
corporate and other | |
| 127,342 | | |
| 196,680 | | |
| 277,815 | | |
| 425,318 | |
Income before
income and mining taxes | |
| 466,340 | | |
| 456,851 | | |
| 2,411,839 | | |
| 636,522 | |
Income and
mining taxes expense | |
| 139,519 | | |
| 166,462 | | |
| 268,127 | | |
| 227,057 | |
Net income
for the period | |
$ | 326,821 | | |
$ | 290,389 | | |
$ | 2,143,712 | | |
$ | 409,465 | |
Net income per share — basic | |
$ | 0.66 | | |
$ | 0.64 | | |
$ | 4.45 | | |
$ | 0.97 | |
Net income per share — diluted | |
$ | 0.66 | | |
$ | 0.63 | | |
$ | 4.43 | | |
$ | 0.97 | |
| |
| | | |
| | | |
| | | |
| | |
Cash
flows: | |
| | | |
| | | |
| | | |
| | |
Cash provided
by operating activities | |
$ | 722,000 | | |
$ | 633,266 | | |
$ | 1,371,613 | | |
$ | 1,140,698 | |
Cash used
in investing activities | |
$ | (450,202 | ) | |
$ | (394,129 | ) | |
$ | (1,848,947 | ) | |
$ | 141,523 | |
Cash used
in financing activities | |
$ | (582,351 | ) | |
$ | (294,307 | ) | |
$ | 254,082 | | |
$ | (462,165 | ) |
| |
| | | |
| | | |
| | | |
| | |
Realized
prices: | |
| | | |
| | | |
| | | |
| | |
Gold (per ounce) | |
$ | 1,975 | | |
$ | 1,866 | | |
$ | 1,935 | | |
$ | 1,872 | |
Silver (per ounce) | |
$ | 24.43 | | |
$ | 22.21 | | |
$ | 23.72 | | |
$ | 23.20 | |
Zinc (per tonne) | |
$ | 2,343 | | |
$ | 3,947 | | |
$ | 2,685 | | |
$ | 3,769 | |
Copper (per tonne) | |
$ | 7,898 | | |
$ | 8,953 | | |
$ | 8,590 | | |
$ | 9,591 | |
AGNICO
EAGLE MINES LIMITED |
SUMMARY
OF OPERATIONS KEY PERFORMANCE INDICATORS |
(thousands
of United States dollars, except where noted) |
| |
| | |
| | |
| | |
| |
| |
Three
Months Ended June 30, | | |
Six
Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Payable
production(v): | |
| | | |
| | | |
| | | |
| | |
Gold (ounces): | |
| | | |
| | | |
| | | |
| | |
Quebec | |
| | | |
| | | |
| | | |
| | |
LaRonde
mine | |
| 58,635 | | |
| 70,736 | | |
| 118,168 | | |
| 158,285 | |
LaRonde
Zone 5 mine | |
| 18,145 | | |
| 17,774 | | |
| 38,219 | | |
| 35,262 | |
Canadian
Malartic complex(iii) | |
| 177,755 | | |
| 87,186 | | |
| 258,440 | | |
| 167,695 | |
Goldex
mine | |
| 37,716 | | |
| 36,877 | | |
| 71,739 | | |
| 71,322 | |
Ontario | |
| | | |
| | | |
| | | |
| | |
Detour
Lake mine | |
| 169,352 | | |
| 195,515 | | |
| 331,209 | | |
| 295,958 | |
Macassa
mine | |
| 57,044 | | |
| 61,262 | | |
| 121,159 | | |
| 85,750 | |
Nunavut | |
| | | |
| | | |
| | | |
| | |
Meliadine
mine | |
| 87,682 | | |
| 97,572 | | |
| 178,149 | | |
| 178,276 | |
Meadowbank
complex | |
| 94,775 | | |
| 96,698 | | |
| 205,885 | | |
| 156,463 | |
Australia | |
| | | |
| | | |
| | | |
| | |
Fosterville
mine | |
| 81,813 | | |
| 86,065 | | |
| 168,371 | | |
| 167,892 | |
Europe | |
| | | |
| | | |
| | | |
| | |
Kittila
mine | |
| 50,130 | | |
| 64,814 | | |
| 113,822 | | |
| 110,322 | |
Mexico | |
| | | |
| | | |
| | | |
| | |
Pinos
Altos mine | |
| 22,159 | | |
| 23,020 | | |
| 46,293 | | |
| 48,190 | |
Creston
Mascota mine | |
| 165 | | |
| 635 | | |
| 409 | | |
| 1,641 | |
La
India mine | |
| 17,833 | | |
| 20,016 | | |
| 34,154 | | |
| 41,718 | |
Total gold
(ounces): | |
| 873,204 | | |
| 858,170 | | |
| 1,686,017 | | |
| 1,518,774 | |
| |
| | | |
| | | |
| | | |
| | |
Silver (thousands
of ounces): | |
| 619 | | |
| 588 | | |
| 1,164 | | |
| 1,197 | |
Zinc (tonnes) | |
| 2,611 | | |
| 2,568 | | |
| 4,898 | | |
| 3,637 | |
Copper (tonnes) | |
| 746 | | |
| 778 | | |
| 1,276 | | |
| 1,547 | |
AGNICO
EAGLE MINES LIMITED |
SUMMARY
OF OPERATIONS KEY PERFORMANCE INDICATORS |
(thousands
of United States dollars, except where noted) |
| |
| | |
| | |
| | |
| |
| |
Three
Months Ended June 30, | | |
Six
Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Payable
metal sold(vi): | |
| | | |
| | | |
| | | |
| | |
Gold (ounces): | |
| | | |
| | | |
| | | |
| | |
Quebec | |
| | | |
| | | |
| | | |
| | |
LaRonde
mine | |
| 61,920 | | |
| 61,296 | | |
| 110,082 | | |
| 132,263 | |
LaRonde
Zone 5 mine | |
| 18,923 | | |
| 13,538 | | |
| 34,384 | | |
| 31,133 | |
Canadian
Malartic complex(iii) | |
| 168,257 | | |
| 85,160 | | |
| 240,066 | | |
| 157,428 | |
Goldex
mine | |
| 37,114 | | |
| 36,681 | | |
| 73,031 | | |
| 70,565 | |
Ontario | |
| | | |
| | | |
| | | |
| | |
Detour
Lake mine | |
| 160,281 | | |
| 188,517 | | |
| 323,575 | | |
| 320,354 | |
Macassa
mine | |
| 57,102 | | |
| 58,050 | | |
| 120,030 | | |
| 87,580 | |
Nunavut | |
| | | |
| | | |
| | | |
| | |
Meliadine
mine | |
| 79,153 | | |
| 97,354 | | |
| 168,739 | | |
| 185,126 | |
Meadowbank
complex | |
| 98,980 | | |
| 93,737 | | |
| 209,005 | | |
| 142,492 | |
Hope
Bay mine | |
| — | | |
| — | | |
| — | | |
| 98 | |
Australia | |
| | | |
| | | |
| | | |
| | |
Fosterville
mine | |
| 85,500 | | |
| 93,177 | | |
| 174,500 | | |
| 195,127 | |
Europe | |
| | | |
| | | |
| | | |
| | |
Kittila
mine | |
| 51,800 | | |
| 64,378 | | |
| 112,520 | | |
| 115,993 | |
Mexico | |
| | | |
| | | |
| | | |
| | |
Pinos
Altos mine | |
| 22,355 | | |
| 24,730 | | |
| 46,591 | | |
| 49,517 | |
Creston
Mascota mine | |
| — | | |
| 599 | | |
| — | | |
| 1,454 | |
La
India mine | |
| 17,463 | | |
| 19,306 | | |
| 33,883 | | |
| 40,315 | |
Total gold
(ounces): | |
| 858,848 | | |
| 836,523 | | |
| 1,646,406 | | |
| 1,529,445 | |
| |
| | | |
| | | |
| | | |
| | |
Silver (thousands
of ounces): | |
| 597 | | |
| 559 | | |
| 1,149 | | |
| 1,171 | |
Zinc (tonnes) | |
| 2,743 | | |
| 1,679 | | |
| 4,874 | | |
| 2,713 | |
Copper (tonnes) | |
| 713 | | |
| 783 | | |
| 1,281 | | |
| 1,549 | |
AGNICO
EAGLE MINES LIMITED |
SUMMARY
OF OPERATIONS KEY PERFORMANCE INDICATORS |
(thousands
of United States dollars, except where noted) |
| |
| | |
| | |
| | |
| |
| |
Three
Months Ended June 30, | | |
Six
Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Total
cash costs per ounce of gold produced — co-product basis(vii): | |
| | | |
| | | |
| | | |
| | |
Quebec | |
| | | |
| | | |
| | | |
| | |
LaRonde
mine | |
$ | 1,046 | | |
$ | 829 | | |
$ | 1,091 | | |
$ | 744 | |
LaRonde
Zone 5 mine | |
| 1,213 | | |
| 983 | | |
| 1,189 | | |
| 981 | |
Canadian
Malartic complex(iii) | |
| 783 | | |
| 767 | | |
| 791 | | |
| 789 | |
Goldex
mine | |
| 777 | | |
| 718 | | |
| 793 | | |
| 747 | |
Ontario | |
| | | |
| | | |
| | | |
| | |
Detour
Lake mine | |
| 734 | | |
| 645 | | |
| 754 | | |
| 634 | |
Macassa
mine | |
| 750 | | |
| 584 | | |
| 675 | | |
| 643 | |
Nunavut | |
| | | |
| | | |
| | | |
| | |
Meliadine
mine | |
| 1,020 | | |
| 839 | | |
| 979 | | |
| 914 | |
Meadowbank
complex | |
| 1,164 | | |
| 999 | | |
| 1,152 | | |
| 1,311 | |
Australia | |
| | | |
| | | |
| | | |
| | |
Fosterville
mine | |
| 437 | | |
| 352 | | |
| 417 | | |
| 331 | |
Europe | |
| | | |
| | | |
| | | |
| | |
Kittila
mine | |
| 901 | | |
| 829 | | |
| 848 | | |
| 917 | |
Mexico | |
| | | |
| | | |
| | | |
| | |
Pinos
Altos mine | |
| 1,582 | | |
| 1,604 | | |
| 1,460 | | |
| 1,459 | |
Creston
Mascota mine | |
| — | | |
| 906 | | |
| — | | |
| 683 | |
La
India mine | |
| 1,408 | | |
| 959 | | |
| 1,369 | | |
| 904 | |
Weighted
average total cash costs per ounce of gold produced | |
$ | 870 | | |
$ | 758 | | |
$ | 866 | | |
$ | 800 | |
| |
| | | |
| | | |
| | | |
| | |
Total
cash costs per ounce of gold produced — by-product basis(vii): | |
| | | |
| | | |
| | | |
| | |
Quebec | |
| | | |
| | | |
| | | |
| | |
LaRonde
mine | |
$ | 787 | | |
$ | 566 | | |
$ | 840 | | |
$ | 517 | |
LaRonde
Zone 5 mine | |
| 1,198 | | |
| 982 | | |
| 1,175 | | |
| 978 | |
Canadian
Malartic complex(iii) | |
| 772 | | |
| 753 | | |
| 779 | | |
| 772 | |
Goldex
mine | |
| 776 | | |
| 718 | | |
| 792 | | |
| 746 | |
Ontario | |
| | | |
| | | |
| | | |
| | |
Detour
Lake mine | |
| 731 | | |
| 640 | | |
| 750 | | |
| 626 | |
Macassa
mine | |
| 747 | | |
| 582 | | |
| 672 | | |
| 641 | |
Nunavut | |
| | | |
| | | |
| | | |
| | |
Meliadine
mine | |
| 1,019 | | |
| 837 | | |
| 978 | | |
| 912 | |
Meadowbank
complex | |
| 1,156 | | |
| 993 | | |
| 1,144 | | |
| 1,305 | |
Australia | |
| | | |
| | | |
| | | |
| | |
Fosterville
mine | |
| 436 | | |
| 351 | | |
| 416 | | |
| 331 | |
Europe | |
| | | |
| | | |
| | | |
| | |
Kittila
mine | |
| 899 | | |
| 828 | | |
| 847 | | |
| 915 | |
Mexico | |
| | | |
| | | |
| | | |
| | |
Pinos
Altos mine | |
| 1,282 | | |
| 1,383 | | |
| 1,196 | | |
| 1,224 | |
Creston
Mascota mine | |
| — | | |
| 899 | | |
| — | | |
| 598 | |
La
India mine | |
| 1,385 | | |
| 936 | | |
| 1,348 | | |
| 876 | |
Weighted
average total cash costs per ounce of gold produced | |
$ | 840 | | |
$ | 726 | | |
$ | 836 | | |
$ | 763 | |
Notes:
(i) Certain
previously reported line items have been restated to reflect the final purchase price allocation of the Merger.
(ii) Operating
margin is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See
Note Regarding Certain Measures of Performance for more information on the Company’s use of operating margin and Reconciliation
of Non-GAAP Financial Performance Measures - Reconciliation of Operating Margin to Net Income for a reconciliation of this measure
to the recent IFRS measure.
(iii) The
information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex up to and including March 30,
2023 and 100% interest thereafter.
(iv) Revaluation
gain on the 50% interest the Company owned in Canadian Malartic complex prior to the Yamana Transaction.
(v) Payable
production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products
that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period.
(vi) The
Canadian Malartic complex's payable metal sold excludes the 5.0% net smelter return royalty held by Osisko Gold Royalties Ltd. The
Detour Lake mine's payable metal sold excludes the 2% net smelter royalty held by Franco-Nevada Corporation. The Macassa mine's payable
metal sold excludes the 1.5% net smelter royalty held by Franco-Nevada Corporation.
(vii) The
total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported
by other gold producers. See Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce of Gold Produced and Minesite
Costs per Tonne and Note to Investors Concerning Certain Measures of Performance for more information on the Company’s
calculation and use of total cash cost per ounce of gold produced.
AGNICO EAGLE MINES LIMITED |
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS |
(thousands of United States dollars, except share amounts, IFRS basis) |
(Unaudited) |
| |
| | |
| |
| |
As at | | |
As at | |
| |
June 30, 2023 | | |
December 31, 2022 | |
ASSETS | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash and cash equivalents | |
$ | 432,526 | | |
$ | 658,625 | |
Trade receivables | |
| 10,141 | | |
| 8,579 | |
Inventories | |
| 1,253,112 | | |
| 1,209,075 | |
Income taxes recoverable | |
| 25,696 | | |
| 35,054 | |
Fair value of derivative financial instruments | |
| 14,792 | | |
| 8,774 | |
Other current assets | |
| 372,984 | | |
| 259,952 | |
Total current assets | |
| 2,109,251 | | |
| 2,180,059 | |
Non-current assets: | |
| | | |
| | |
Goodwill | |
| 4,574,777 | | |
| 2,044,123 | |
Property, plant and mine development | |
| 21,223,554 | | |
| 18,459,400 | |
Investments | |
| 340,974 | | |
| 332,742 | |
Deferred income and mining tax asset | |
| 12,603 | | |
| 11,574 | |
Other assets | |
| 1,050,493 | | |
| 466,910 | |
Total assets | |
$ | 29,311,652 | | |
$ | 23,494,808 | |
| |
| | | |
| | |
LIABILITIES | |
| | | |
| | |
Current liabilities: | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 806,687 | | |
$ | 672,503 | |
Share based liabilities | |
| 11,310 | | |
| 15,148 | |
Interest payable | |
| 8,151 | | |
| 16,496 | |
Income taxes payable | |
| 70,870 | | |
| 4,187 | |
Current portion of long-term debt | |
| — | | |
| 100,000 | |
Reclamation provision | |
| 42,818 | | |
| 23,508 | |
Lease obligations | |
| 47,964 | | |
| 36,466 | |
Fair value of derivative financial instruments | |
| 18,156 | | |
| 78,114 | |
Total current liabilities | |
| 1,005,956 | | |
| 946,422 | |
Non-current liabilities: | |
| | | |
| | |
Long-term debt | |
| 1,942,019 | | |
| 1,242,070 | |
Reclamation provision | |
| 986,813 | | |
| 878,328 | |
Lease obligations | |
| 125,460 | | |
| 114,876 | |
Share based liabilities | |
| 10,377 | | |
| 17,277 | |
Deferred income and mining tax liabilities | |
| 4,928,181 | | |
| 3,981,875 | |
Other liabilities | |
| 359,643 | | |
| 72,615 | |
Total liabilities | |
| 9,358,449 | | |
| 7,253,463 | |
| |
| | | |
| | |
EQUITY | |
| | | |
| | |
Common shares: | |
| | | |
| | |
Outstanding — 495,442,295 common shares issued, less 578,087 shares held in trust | |
| 18,224,982 | | |
| 16,251,221 | |
Stock options | |
| 200,300 | | |
| 197,430 | |
Contributed surplus | |
| 22,074 | | |
| 23,280 | |
Retained earnings (deficit) | |
| 1,558,021 | | |
| (201,580 | ) |
Other reserves | |
| (52,174 | ) | |
| (29,006 | ) |
Total equity | |
| 19,953,203 | | |
| 16,241,345 | |
Total liabilities and equity | |
$ | 29,311,652 | | |
$ | 23,494,808 | |
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF INCOME
(thousands of United States dollars, except per share amounts, IFRS basis)
(Unaudited)
| |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | | |
| Restated(i) | | |
| | | |
| Restated(i) | |
REVENUES | |
| | | |
| | | |
| | | |
| | |
Revenues from mining operations | |
$ | 1,718,197 | | |
$ | 1,581,058 | | |
$ | 3,227,858 | | |
$ | 2,906,746 | |
| |
| | | |
| | | |
| | | |
| | |
COSTS, INCOME AND EXPENSES | |
| | | |
| | | |
| | | |
| | |
Production(ii) | |
| 743,253 | | |
| 657,636 | | |
| 1,396,397 | | |
| 1,319,371 | |
Exploration and corporate development | |
| 54,422 | | |
| 70,352 | | |
| 108,190 | | |
| 136,194 | |
Amortization of property, plant and mine development | |
| 381,262 | | |
| 269,891 | | |
| 685,221 | | |
| 525,535 | |
General and administrative | |
| 47,312 | | |
| 49,275 | | |
| 95,520 | | |
| 116,817 | |
Finance costs | |
| 35,837 | | |
| 20,961 | | |
| 59,285 | | |
| 43,614 | |
(Gain) loss on derivative financial instruments | |
| (26,433 | ) | |
| 40,753 | | |
| (32,972 | ) | |
| 12,089 | |
Foreign currency translation loss (gain) | |
| 4,014 | | |
| (13,492 | ) | |
| 4,234 | | |
| (12,282 | ) |
Care and maintenance | |
| 9,411 | | |
| 9,257 | | |
| 20,656 | | |
| 19,713 | |
Revaluation gain(iii) | |
| — | | |
| — | | |
| (1,543,414 | ) | |
| — | |
Other expenses | |
| 2,779 | | |
| 19,574 | | |
| 22,902 | | |
| 109,173 | |
Income before income and mining taxes | |
| 466,340 | | |
| 456,851 | | |
| 2,411,839 | | |
| 636,522 | |
Income and mining taxes expense | |
| 139,519 | | |
| 166,462 | | |
| 268,127 | | |
| 227,057 | |
Net income for the period | |
$ | 326,821 | | |
$ | 290,389 | | |
$ | 2,143,712 | | |
$ | 409,465 | |
| |
| | | |
| | | |
| | | |
| | |
Net income per share - basic | |
$ | 0.66 | | |
$ | 0.64 | | |
$ | 4.45 | | |
$ | 0.97 | |
Net income per share - diluted | |
$ | 0.66 | | |
$ | 0.63 | | |
$ | 4.43 | | |
$ | 0.97 | |
Adjusted net income per share - basic(iv) | |
$ | 0.65 | | |
$ | 0.79 | | |
$ | 1.23 | | |
$ | 1.44 | |
Adjusted net income per share - diluted(iv) | |
$ | 0.65 | | |
$ | 0.79 | | |
$ | 1.22 | | |
$ | 1.44 | |
| |
| | | |
| | | |
| | | |
| | |
Weighted average number of common shares outstanding (in thousands): | |
| | | |
| | | |
| | | |
| | |
Basic | |
| 494,138 | | |
| 455,285 | | |
| 481,553 | | |
| 419,997 | |
Diluted | |
| 495,509 | | |
| 456,787 | | |
| 482,978 | | |
| 421,533 | |
Notes: |
|
|
|
|
|
|
|
(i) Certain previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger. |
(ii) Exclusive of amortization, which is shown separately. |
(iii) Revaluation gain on the 50% interest previously owned in the Canadian Malartic complex. |
(iv) Refer to Reconciliation of Adjusted Net Income to Net Income in this News Release for calculations supporting adjusted net income. |
AGNICO EAGLE MINES LIMITED
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars, IFRS basis)
(Unaudited)
| |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
| |
| | | |
| Restated(i) | | |
| | | |
| Restated(i) | |
OPERATING ACTIVITIES | |
| | | |
| | | |
| | | |
| | |
Net income for the period | |
$ | 326,821 | | |
$ | 290,389 | | |
| 2,143,712 | | |
$ | 409,465 | |
Add (deduct) adjusting items: | |
| | | |
| | | |
| | | |
| | |
Amortization of property, plant and mine development | |
| 381,262 | | |
| 269,891 | | |
| 685,221 | | |
| 525,535 | |
Revaluation gain(ii) | |
| — | | |
| — | | |
| (1,543,414 | ) | |
| — | |
Deferred income and mining taxes | |
| 7,469 | | |
| 87,488 | | |
| 43,572 | | |
| 82,611 | |
Unrealized (gain) loss on currency and commodity derivatives | |
| (50,088 | ) | |
| 33,569 | | |
| (65,976 | ) | |
| 9,514 | |
Unrealized loss on warrants | |
| 6,959 | | |
| 21,095 | | |
| 2,296 | | |
| 20,182 | |
Stock-based compensation | |
| 13,380 | | |
| 6,959 | | |
| 26,527 | | |
| 29,207 | |
Foreign currency translation loss (gain) | |
| 4,014 | | |
| (13,492 | ) | |
| 4,234 | | |
| (12,282 | ) |
Other | |
| 3,207 | | |
| 10,056 | | |
| 5,651 | | |
| 7,735 | |
Changes in non-cash working capital balances: | |
| | | |
| | | |
| | | |
| | |
Trade receivables | |
| (2,930 | ) | |
| (233 | ) | |
| 5,465 | | |
| 38,835 | |
Income taxes | |
| 65,428 | | |
| (3,461 | ) | |
| 89,405 | | |
| (43,331 | ) |
Inventories | |
| (28,815 | ) | |
| (10,110 | ) | |
| (26,747 | ) | |
| 168,042 | |
Other current assets | |
| (99,880 | ) | |
| (78,258 | ) | |
| (88,885 | ) | |
| (117,865 | ) |
Accounts payable and accrued liabilities | |
| 108,128 | | |
| 32,689 | | |
| 100,859 | | |
| 25,045 | |
Interest payable | |
| (12,955 | ) | |
| (13,316 | ) | |
| (10,307 | ) | |
| (1,995 | ) |
Cash provided by operating activities | |
| 722,000 | | |
| 633,266 | | |
| 1,371,613 | | |
| 1,140,698 | |
| |
| | | |
| | | |
| | | |
| | |
INVESTING ACTIVITIES | |
| | | |
| | | |
| | | |
| | |
Additions to property, plant and mine development | |
| (423,621 | ) | |
| (408,596 | ) | |
| (808,555 | ) | |
| (701,747 | ) |
Yamana transaction, net of cash and cash equivalents | |
| — | | |
| — | | |
| (1,000,617 | ) | |
| — | |
Cash and cash equivalents acquired in Kirkland acquisition | |
| — | | |
| — | | |
| — | | |
| 838,732 | |
Purchases of equity securities and other investments | |
| (29,427 | ) | |
| (18,411 | ) | |
| (44,164 | ) | |
| (31,854 | ) |
Proceeds from loan repayment | |
| — | | |
| 40,000 | | |
| — | | |
| 40,000 | |
Other investing activities | |
| 2,846 | | |
| (7,122 | ) | |
| 4,389 | | |
| (3,608 | ) |
Cash (used in) provided by investing activities | |
| (450,202 | ) | |
| (394,129 | ) | |
| (1,848,947 | ) | |
| 141,523 | |
| |
| | | |
| | | |
| | | |
| | |
FINANCING ACTIVITIES | |
| | | |
| | | |
| | | |
| | |
Proceeds from Credit Facility | |
| — | | |
| — | | |
| 1,000,000 | | |
| 100,000 | |
Repayment of Credit Facility | |
| (900,000 | ) | |
| — | | |
| (900,000 | ) | |
| (100,000 | ) |
Proceeds from Term Loan Facility, net of financing costs | |
| 598,958 | | |
| — | | |
| 598,958 | | |
| — | |
Repayment of Senior Notes | |
| (100,000 | ) | |
| (125,000 | ) | |
| (100,000 | ) | |
| (125,000 | ) |
Repayment of lease obligations | |
| (12,420 | ) | |
| (8,476 | ) | |
| (22,168 | ) | |
| (16,786 | ) |
Disbursements to associates | |
| (21,899 | ) | |
| — | | |
| (21,899 | ) | |
| — | |
Dividends paid | |
| (165,258 | ) | |
| (149,801 | ) | |
| (321,421 | ) | |
| (304,583 | ) |
Repurchase of common shares | |
| (1,786 | ) | |
| (22,258 | ) | |
| (16,350 | ) | |
| (50,147 | ) |
Proceeds on exercise of stock options | |
| 12,750 | | |
| 6,104 | | |
| 23,052 | | |
| 23,945 | |
Common shares issued | |
| 7,304 | | |
| 5,124 | | |
| 13,910 | | |
| 10,406 | |
Cash (used in) provided by financing activities | |
| (582,351 | ) | |
| (294,307 | ) | |
| 254,082 | | |
| (462,165 | ) |
Effect of exchange rate changes on cash and cash equivalents | |
| (1,566 | ) | |
| 30 | | |
| (2,847 | ) | |
| 1,013 | |
Net (decrease) increase in cash and cash equivalents during the period | |
| (312,119 | ) | |
| (55,140 | ) | |
| (226,099 | ) | |
| 821,069 | |
Cash and cash equivalents, beginning of period | |
| 744,645 | | |
| 1,061,995 | | |
| 658,625 | | |
| 185,786 | |
Cash and cash equivalents, end of period | |
$ | 432,526 | | |
$ | 1,006,855 | | |
$ | 432,526 | | |
$ | 1,006,855 | |
| |
| | | |
| | | |
| | | |
| | |
SUPPLEMENTAL CASH FLOW INFORMATION | |
| | | |
| | | |
| | | |
| | |
Interest paid | |
$ | 43,437 | | |
$ | 33,219 | | |
$ | 56,488 | | |
$ | 41,422 | |
Income and mining taxes paid | |
$ | 74,828 | | |
$ | 84,678 | | |
$ | 139,765 | | |
$ | 188,078 | |
Notes:
(i) Certain
previously reported line items have been restated to reflect the final purchase price allocation of the Kirkland Merger.
(ii) Revaluation
gain on the 50% interest previously owned in the Canadian Malartic complex.
AGNICO EAGLE MINES LIMITED |
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES |
(thousands of United States dollars, except where noted) |
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures total cash costs per ounce of gold produced and minesite costs per tonne. |
|
The following tables set out a reconciliation of total cash costs per ounce of gold produced (on both a by-product basis and co-product basis) and minesite costs per tonne to production costs, exclusive of amortization, as presented in the condensed interim consolidated statements of income in accordance with IFRS. |
Total Production Costs by Mine | |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
(thousands of United States dollars) | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Quebec | |
| | |
| | |
| | |
| |
LaRonde mine | |
$ | 63,969 | | |
$ | 33,949 | | |
$ | 103,676 | | |
$ | 79,790 | |
LaRonde Zone 5 mine | |
| 21,763 | | |
| 17,133 | | |
| 43,987 | | |
| 33,866 | |
LaRonde complex | |
| 85,732 | | |
| 51,082 | | |
| 147,663 | | |
| 113,656 | |
Canadian Malartic complex(i) | |
| 144,190 | | |
| 56,405 | | |
| 201,481 | | |
| 113,342 | |
Goldex mine | |
| 28,160 | | |
| 26,530 | | |
| 55,995 | | |
| 52,747 | |
Ontario | |
| | | |
| | | |
| | | |
| | |
Detour Lake mine | |
| 112,796 | | |
| 137,429 | | |
| 226,818 | | |
| 257,394 | |
Macassa mine | |
| 38,545 | | |
| 33,001 | | |
| 76,504 | | |
| 65,315 | |
Nunavut | |
| | | |
| | | |
| | | |
| | |
Meliadine mine | |
| 78,817 | | |
| 86,386 | | |
| 160,011 | | |
| 165,065 | |
Meadowbank complex | |
| 117,488 | | |
| 107,373 | | |
| 247,492 | | |
| 204,084 | |
Australia | |
| | | |
| | | |
| | | |
| | |
Fosterville mine | |
| 35,831 | | |
| 48,303 | | |
| 72,430 | | |
| 136,304 | |
Europe | |
| | | |
| | | |
| | | |
| | |
Kittila mine | |
| 43,336 | | |
| 53,315 | | |
| 96,631 | | |
| 102,766 | |
Mexico | |
| | | |
| | | |
| | | |
| | |
Pinos Altos mine | |
| 34,709 | | |
| 39,873 | | |
| 67,631 | | |
| 72,409 | |
Creston Mascota mine | |
| — | | |
| 484 | | |
| — | | |
| 1,099 | |
La India mine | |
| 23,649 | | |
| 17,455 | | |
| 43,741 | | |
| 35,190 | |
Production costs per the condensed interim consolidated statements of income | |
$ | 743,253 | | |
$ | 657,636 | | |
$ | 1,396,397 | | |
$ | 1,319,371 | |
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne by Mine
(thousands of United States dollars, except as noted)
LaRonde
mine Per
Ounce of Gold
Produced | |
Three
Months Ended
June 30, 2023 | |
Three
Months Ended
June 30, 2022 | |
Six
Months Ended
June 30, 2023 | |
Six
Months Ended
June 30, 2022 | |
Gold production (ounces) | |
|
|
|
58,635 | |
| |
|
70,736 | |
| |
|
118,168 | |
|
|
|
158,285 | |
| |
| (thousands) | |
| ($
per ounce) | |
| (thousands) | |
| ($
per ounce) | |
| (thousands) | |
| ($
per ounce) | |
| (thousands) | |
| ($
per ounce) | |
Production costs | |
$ | 63,969 | |
$ | 1,091 | |
$ | 33,949 | |
$ | 480 | |
$ | 103,676 | |
$ | 877 | |
$ | 79,790 | |
$ | 504 | |
Inventory adjustments(ii) | |
| (8,971 | ) |
| (153 | ) |
| 20,746 | |
| 293 | |
| 13,534 | |
| 115 | |
| 31,673 | |
| 200 | |
Realized gains and losses on hedges of production costs | |
| 770 | |
| 13 | |
| (127 | ) |
| (2 | ) |
| 1,848 | |
| 16 | |
| (612 | ) |
| (4 | ) |
Other adjustments(v) | |
| 5,555 | |
| 95 | |
| 4,079 | |
| 58 | |
| 9,903 | |
| 83 | |
| 6,841 | |
| 44 | |
Cash operating costs (co-product basis) | |
$ | 61,323 | |
$ | 1,046 | |
$ | 58,647 | |
$ | 829 | |
$ | 128,961 | |
$ | 1,091 | |
$ | 117,692 | |
$ | 744 | |
By-product metal revenues | |
| (15,157 | ) |
| (259 | ) |
| (18,643 | ) |
| (263 | ) |
| (29,689 | ) |
| (251 | ) |
| (35,861 | ) |
| (227 | ) |
Cash operating costs (by-product
basis) | |
$ | 46,166 | |
$ | 787 | |
$ | 40,004 | |
$ | 566 | |
$ | 99,272 | |
$ | 840 | |
$ | 81,831 | |
$ | 517 | |
LaRonde
mine Per
Tonne | |
Three
Months Ended
June 30, 2023 | |
Three
Months Ended
June 30, 2022 | |
Six
Months Ended
June 30, 2023 | |
Six
Months Ended
June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| |
|
347 | |
| |
|
423 | |
| |
|
736 | |
| |
|
877 | |
| |
| (thousands) | |
| ($
per tonne) | |
| (thousands) | |
| ($
per tonne) | |
| (thousands) | |
| ($
per tonne) | |
| (thousands) | |
| ($
per tonne) | |
Production costs | |
$ | 63,969 | |
$ | 185 | |
$ | 33,949 | |
$ | 80 | |
$ | 103,676 | |
$ | 141 | |
$ | 79,790 | |
$ | 91 | |
Production costs (C$) | |
$ | 85,861 | |
$ | 247 | |
$ | 43,317 | |
$ | 103 | |
$ | 139,434 | |
$ | 189 | |
$ | 101,332 | |
$ | 115 | |
Inventory adjustments (C$)(ii) | |
| (11,297 | ) |
| (33 | ) |
| 25,856 | |
| 61 | |
| 18,426 | |
| 25 | |
| 38,213 | |
| 44 | |
Other adjustments (C$)(v) | |
| (3,302 | ) |
| (8 | ) |
| (3,371 | ) |
| (8 | ) |
| (6,443 | ) |
| (8 | ) |
| (6,877 | ) |
| (8 | ) |
Minesite operating costs (C$) | |
$ | 71,262 | |
$ | 206 | |
$ | 65,802 | |
$ | 156 | |
$ | 151,417 | |
$ | 206 | |
$ | 132,668 | |
$ | 151 | |
LaRonde
Zone 5 mine Per
Ounce of Gold
Produced | |
Three
Months Ended
June 30, 2023 | |
Three
Months Ended
June 30, 2022 | |
Six
Months Ended
June 30, 2023 | |
Six
Months Ended
June 30, 2022 | |
Gold production (ounces) | |
|
|
|
18,145 | |
| |
|
17,774 | |
| |
|
38,219 | |
| |
|
35,262 | |
| |
| (thousands) | |
| ($
per ounce) | |
| (thousands) | |
| ($
per ounce) | |
| (thousands) | |
| ($
per ounce) | |
| (thousands) | |
| ($
per ounce) | |
Production costs | |
$ | 21,763 | |
$ | 1,199 | |
$ | 17,133 | |
$ | 964 | |
$ | 43,987 | |
$ | 1,151 | |
$ | 33,866 | |
$ | 960 | |
Inventory adjustments(ii) | |
| (784 | ) |
| (43 | ) |
| 350 | |
| 20 | |
| (261 | ) |
| (7 | ) |
| 815 | |
| 24 | |
Realized gains and losses on hedges of production costs | |
| 257 | |
| 14 | |
| (30 | ) |
| (2 | ) |
| 616 | |
| 16 | |
| (143 | ) |
| (4 | ) |
Other adjustments(v) | |
| 775 | |
| 43 | |
| 19 | |
| 1 | |
| 1,111 | |
| 29 | |
| 49 | |
| 1 | |
Cash operating costs (co-product basis) | |
$ | 22,011 | |
$ | 1,213 | |
$ | 17,472 | |
$ | 983 | |
$ | 45,453 | |
$ | 1,189 | |
$ | 34,587 | |
$ | 981 | |
By-product metal revenues | |
| (271 | ) |
| (15 | ) |
| (28 | ) |
| (1 | ) |
| (546 | ) |
| (14 | ) |
| (119 | ) |
| (3 | ) |
Cash operating costs (by-product
basis) | |
$ | 21,740 | |
$ | 1,198 | |
$ | 17,444 | |
$ | 982 | |
$ | 44,907 | |
$ | 1,175 | |
$ | 34,468 | |
$ | 978 | |
LaRonde Zone 5 mine Per Tonne | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| |
|
313 | |
| |
|
291 | |
| |
|
632 | |
| |
|
570 | |
| |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
Production costs | |
$ | 21,763 | |
$ | 70 | |
$ | 17,133 | |
$ | 59 | |
$ | 43,987 | |
$ | 70 | |
$ | 33,866 | |
$ | 59 | |
Production costs (C$) | |
$ | 29,277 | |
$ | 94 | |
$ | 21,854 | |
$ | 75 | |
$ | 59,265 | |
$ | 94 | |
$ | 43,027 | |
$ | 75 | |
Inventory adjustments (C$)(ii) | |
| (1,147 | ) |
| (4 | ) |
| 523 | |
| 2 | |
| (409 | ) |
| (1 | ) |
| 1,099 | |
| 2 | |
Minesite operating costs (C$) | |
$ | 28,130 | |
$ | 90 | |
$ | 22,377 | |
$ | 77 | |
$ | 58,856 | |
$ | 93 | |
$ | 44,126 | |
$ | 77 | |
LaRonde complex Per Ounce of Gold Produced | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Gold production (ounces) | |
| |
|
76,780 | |
| |
|
88,510 | |
| |
|
156,387 | |
| |
|
193,547 | |
| |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
Production costs | |
$ | 85,732 | |
$ | 1,117 | |
$ | 51,082 | |
$ | 577 | |
$ | 147,663 | |
$ | 944 | |
$ | 113,656 | |
$ | 587 | |
Inventory adjustments(ii) | |
| (9,755 | ) |
| (127 | ) |
| 21,096 | |
| 238 | |
| 13,273 | |
| 85 | |
| 32,488 | |
| 168 | |
Realized gains and losses on hedges of production costs | |
| 1,027 | |
| 13 | |
| (157 | ) |
| (2 | ) |
| 2,464 | |
| 16 | |
| (755 | ) |
| (4 | ) |
Other adjustments(v) | |
| 6,330 | |
| 82 | |
| 4,098 | |
| 47 | |
| 11,014 | |
| 70 | |
| 6,890 | |
| 36 | |
Cash operating costs (co-product basis) | |
$ | 83,334 | |
$ | 1,085 | |
$ | 76,119 | |
$ | 860 | |
$ | 174,414 | |
$ | 1,115 | |
$ | 152,279 | |
$ | 787 | |
By-product metal revenues | |
| (15,428 | ) |
| (201 | ) |
| (18,671 | ) |
| (211 | ) |
| (30,235 | ) |
| (193 | ) |
| (35,980 | ) |
| (186 | ) |
Cash operating costs (by-product basis) | |
$ | 67,906 | |
$ | 884 | |
$ | 57,448 | |
$ | 649 | |
$ | 144,179 | |
$ | 922 | |
$ | 116,299 | |
$ | 601 | |
LaRonde complex Per Tonne | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| |
|
660 | |
| |
|
714 | |
| |
|
1,368 | |
| |
|
1,447 | |
| |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
Production costs | |
$ | 85,732 | |
$ | 130 | |
$ | 51,082 | |
$ | 72 | |
$ | 147,663 | |
$ | 108 | |
$ | 113,656 | |
$ | 79 | |
Production costs (C$) | |
$ | 115,138 | |
$ | 174 | |
$ | 65,171 | |
$ | 92 | |
$ | 198,699 | |
$ | 145 | |
$ | 144,359 | |
$ | 100 | |
Inventory adjustments (C$)(ii) | |
| (12,444 | ) |
| (19 | ) |
| 26,379 | |
| 37 | |
| 18,017 | |
| 13 | |
| 39,312 | |
| 27 | |
Other adjustments (C$)(v) | |
| (3,302 | ) |
| (4 | ) |
| (3,371 | ) |
| (5 | ) |
| (6,443 | ) |
| (4 | ) |
| (6,877 | ) |
| (5 | ) |
Minesite operating costs (C$) | |
$ | 99,392 | |
$ | 151 | |
$ | 88,179 | |
$ | 124 | |
$ | 210,273 | |
$ | 154 | |
$ | 176,794 | |
$ | 122 | |
Canadian Malartic complex Per Ounce of Gold Produced(i) | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Gold production (ounces) | |
| |
|
177,755 | |
| |
|
87,186 | |
| |
|
258,440 | |
| |
|
167,695 | |
| |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
Production costs | |
$ | 144,190 | |
$ | 811 | |
$ | 56,405 | |
$ | 647 | |
$ | 201,481 | |
$ | 780 | |
$ | 113,342 | |
$ | 676 | |
Inventory adjustments(ii) | |
| 43 | |
| — | |
| 2,139 | |
| 25 | |
| 538 | |
| 2 | |
| 2,867 | |
| 17 | |
Purchase price allocation to inventory(iv) | |
| (22,821 | ) |
| (128 | ) |
| — | |
| — | |
| (22,821 | ) |
| (88 | ) |
| — | |
| — | |
Other adjustments(v) | |
| 17,835 | |
| 100 | |
| 8,332 | |
| 95 | |
| 25,217 | |
| 97 | |
| 16,114 | |
| 96 | |
Cash operating costs (co-product basis) | |
$ | 139,247 | |
$ | 783 | |
$ | 66,876 | |
$ | 767 | |
$ | 204,415 | |
$ | 791 | |
$ | 132,323 | |
$ | 789 | |
By-product metal revenues | |
| (2,069 | ) |
| (11 | ) |
| (1,243 | ) |
| (14 | ) |
| (3,207 | ) |
| (12 | ) |
| (2,905 | ) |
| (17 | ) |
Cash operating costs (by-product basis) | |
$ | 137,178 | |
$ | 772 | |
$ | 65,633 | |
$ | 753 | |
$ | 201,208 | |
$ | 779 | |
$ | 129,418 | |
$ | 772 | |
Canadian Malartic complex Per Tonne(i) | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
|
|
|
4,882 | |
| |
|
2,399 | |
| |
|
7,144 | |
| |
|
4,811 | |
| |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
Production costs | |
$ | 144,190 | |
$ | 30 | |
$ | 56,405 | |
$ | 24 | |
$ | 201,481 | |
$ | 28 | |
$ | 113,342 | |
$ | 24 | |
Production costs (C$) | |
$ | 194,997 | |
$ | 40 | |
$ | 71,080 | |
$ | 30 | |
$ | 271,662 | |
$ | 38 | |
$ | 142,709 | |
$ | 30 | |
Inventory adjustments (C$)(ii) | |
| 511 | |
| — | |
| 2,664 | |
| 1 | |
| 1,251 | |
| — | |
| 3,674 | |
| 1 | |
Purchase price allocation to inventory (C$)(iv) | |
| (30,651 | ) |
| (6 | ) |
| — | |
| — | |
| (30,651 | ) |
| (4 | ) |
| — | |
| — | |
Other adjustments (C$)(v) | |
| 23,599 | |
| 5 | |
| 10,581 | |
| 4 | |
| 33,424 | |
| 5 | |
| 20,228 | |
| 4 | |
Minesite operating costs (C$) | |
$ | 188,456 | |
$ | 39 | |
$ | 84,325 | |
$ | 35 | |
$ | 275,686 | |
$ | 39 | |
$ | 166,611 | |
$ | 35 | |
Goldex mine Per Ounce of Gold Produced | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Gold production (ounces) | |
|
|
|
37,716 | |
| |
|
36,877 | |
| |
|
71,739 | |
| |
|
71,322 | |
| |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
Production costs | |
$ | 28,160 | |
$ | 747 | |
$ | 26,530 | |
$ | 719 | |
$ | 55,995 | |
$ | 781 | |
$ | 52,747 | |
$ | 740 | |
Inventory adjustments(ii) | |
| 582 | |
| 16 | |
| (22 | ) |
| (1 | ) |
| (455 | ) |
| (6 | ) |
| 688 | |
| 10 | |
Realized gains and losses on hedges of production costs | |
| 505 | |
| 13 | |
| (56 | ) |
| (1 | ) |
| 1,212 | |
| 17 | |
| (271 | ) |
| (5 | ) |
Other adjustments(v) | |
| 40 | |
| 1 | |
| 41 | |
| 1 | |
| 102 | |
| 1 | |
| 95 | |
| 2 | |
Cash operating costs (co-product basis) | |
$ | 29,287 | |
$ | 777 | |
$ | 26,493 | |
$ | 718 | |
$ | 56,854 | |
$ | 793 | |
$ | 53,259 | |
$ | 747 | |
By-product metal revenues | |
| (11 | ) |
| (1 | ) |
| (5 | ) |
| — | |
| (25 | ) |
| (1 | ) |
| (21 | ) |
| (1 | ) |
Cash operating costs (by-product basis) | |
$ | 29,276 | |
$ | 776 | |
$ | 26,488 | |
$ | 718 | |
$ | 56,829 | |
$ | 792 | |
$ | 53,238 | |
$ | 746 | |
Goldex mine Per Tonne | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| |
|
761 | |
| |
|
738 | |
| |
|
1,459 | |
| |
|
1,482 | |
| |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
| (thousands) | |
| ($ per tonne) | |
Production costs | |
$ | 28,160 | |
$ | 37 | |
$ | 26,530 | |
$ | 36 | |
$ | 55,995 | |
$ | 38 | |
$ | 52,747 | |
$ | 36 | |
Production costs (C$) | |
$ | 37,859 | |
$ | 50 | |
$ | 33,951 | |
$ | 46 | |
$ | 75,486 | |
$ | 52 | |
$ | 67,171 | |
$ | 45 | |
Inventory adjustments (C$)(ii) | |
| 730 | |
| 1 | |
| 23 | |
| — | |
| (660 | ) |
| (1 | ) |
| 915 | |
| 1 | |
Minesite operating costs (C$) | |
$ | 38,589 | |
$ | 51 | |
$ | 33,974 | |
$ | 46 | |
$ | 74,826 | |
$ | 51 | |
$ | 68,086 | |
$ | 46 | |
Detour Lake mine Per Ounce of Gold
Produced | |
Three Months Ended June 30, 2023 | |
Three Months Ended June 30, 2022 | |
Six Months Ended June 30, 2023 | |
Six Months Ended June 30, 2022 | |
Gold production (ounces) | |
| |
|
169,352 | |
| |
|
195,515 | |
| |
|
331,209 | |
| |
|
295,958 | |
| |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
| (thousands) | |
| ($ per ounce) | |
Production costs | |
$ | 112,796 | |
$ | 666 | |
$ | 137,429 | |
$ | 703 | |
$ | 226,818 | |
$ | 685 | |
$ | 257,394 | |
$ | 870 | |
Inventory adjustments(ii) | |
| (474 | ) |
| (3 | ) |
| 3,988 | |
| 20 | |
| (168 | ) |
| — | |
| (12,633 | ) |
| (43 | ) |
Realized gains and losses on hedges of production costs | |
| 2,541 | |
| 15 | |
| — | |
| — | |
| 6,095 | |
| 18 | |
| — | |
| — | |
Purchase price allocation to inventory(iv) | |
| — | |
| — | |
| (22,690 | ) |
| (116 | ) |
| — | |
| — | |
| (68,837 | ) |
| (233 | ) |
Other adjustments(v) | |
| 9,410 | |
| 56 | |
| 7,304 | |
| 38 | |
| 16,985 | |
| 51 | |
| 11,589 | |
| 40 | |
Cash operating costs (co-product basis) | |
$ | 124,273 | |
$ | 734 | |
$ | 126,031 | |
$ | 645 | |
$ | 249,730 | |
$ | 754 | |
$ | 187,513 | |
$ | 634 | |
By-product metal revenues | |
| (505 | ) |
| (3 | ) |
| (1,015 | ) |
| (5 | ) |
| (1,187 | ) |
| (4 | ) |
| (2,220 | ) |
| (8 | ) |
Cash operating costs (by-product basis) | |
$ | 123,768 | |
$ | 731 | |
$ | 125,016 | |
$ | 640 | |
$ | 248,543 | |
$ | 750 | |
$ | 185,293 | |
$ | 626 | |
Detour Lake mine Per Tonne | |
Three Months Ended June 30, 2023 | | |
Three Months Ended June 30, 2022 | | |
Six Months Ended June 30, 2023 | | |
Six Months Ended June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| | |
6,800 | | |
| | |
6,519 | | |
| | |
13,197 | | |
| | |
9,789 | |
| |
(thousands) | | |
($ per tonne) | | |
(thousands) | | |
($ per tonne) | | |
(thousands) | | |
($ per tonne) | | |
(thousands) | | |
($ per tonne) | |
Production costs | |
$ | 112,796 | | |
$ | 17 | | |
$ | 137,429 | | |
$ | 21 | | |
$ | 226,818 | | |
$ | 17 | | |
$ | 257,394 | | |
$ | 26 | |
Production costs (C$) | |
$ | 151,645 | | |
$ | 22 | | |
$ | 175,421 | | |
$ | 27 | | |
$ | 305,553 | | |
$ | 23 | | |
$ | 327,239 | | |
$ | 33 | |
Inventory adjustments (C$)(ii) | |
| 12,357 | | |
| 2 | | |
| 5,205 | | |
| 1 | | |
| 12,872 | | |
| 1 | | |
| (15,867 | ) | |
| (2 | ) |
Purchase price allocation to inventory(C$)(iv) | |
| — | | |
| — | | |
| (29,108 | ) | |
| (5 | ) | |
| — | | |
| — | | |
| (87,508 | ) | |
| (9 | ) |
Other adjustments (C$)(v) | |
| 11,381 | | |
| 2 | | |
| 9,349 | | |
| 1 | | |
| 20,146 | | |
| 2 | | |
| 14,749 | | |
| 2 | |
Minesite operating costs (C$) | |
$ | 175,383 | | |
$ | 26 | | |
$ | 160,867 | | |
$ | 24 | | |
$ | 338,571 | | |
$ | 26 | | |
$ | 238,613 | | |
$ | 24 | |
Macassa mine Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | |
57,044 | | |
| | |
61,262 | | |
| | |
121,159 | | |
| | |
85,750 | |
| |
(thousands) | | |
($ per ounce) | | |
(thousands) | | |
($ per ounce) | | |
(thousands) | | |
($ per ounce) | | |
(thousands) | | |
($ per ounce) | |
Production costs | |
$ | 38,545 | | |
$ | 676 | | |
$ | 33,001 | | |
$ | 539 | | |
$ | 76,504 | | |
$ | 631 | | |
$ | 65,315 | | |
$ | 762 | |
Inventory adjustments(ii) | |
| (178 | ) | |
| (3 | ) | |
| 953 | | |
| 16 | | |
| (1,473 | ) | |
| (11 | ) | |
| (1,147 | ) | |
| (13 | ) |
Realized gains and losses on hedges of production costs | |
| 812 | | |
| 14 | | |
| — | | |
| — | | |
| 1,949 | | |
| 16 | | |
| — | | |
| — | |
Purchase price allocation to inventory(iv) | |
| — | | |
| — | | |
| 501 | | |
| 8 | | |
| — | | |
| — | | |
| (10,326 | ) | |
| (120 | ) |
Other adjustments(v) | |
| 3,613 | | |
| 63 | | |
| 1,332 | | |
| 21 | | |
| 4,757 | | |
| 39 | | |
| 1,288 | | |
| 14 | |
Cash operating costs (co-product basis) | |
$ | 42,792 | | |
$ | 750 | | |
$ | 35,787 | | |
$ | 584 | | |
$ | 81,737 | | |
$ | 675 | | |
$ | 55,130 | | |
$ | 643 | |
By-product metal revenues | |
| (168 | ) | |
| (3 | ) | |
| (114 | ) | |
| (2 | ) | |
| (376 | ) | |
| (3 | ) | |
| (187 | ) | |
| (2 | ) |
Cash operating costs (by-product basis) | |
$ | 42,624 | | |
$ | 747 | | |
$ | 35,673 | | |
$ | 582 | | |
$ | 81,361 | | |
$ | 672 | | |
$ | 54,943 | | |
$ | 641 | |
Macassa mine Per Tonne | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| | | |
| 112 | | |
| | | |
| 88 | | |
| | | |
| 199 | | |
| | | |
| 135 | |
| |
(thousands) | | |
($ per tonne) | | |
(thousands) | | |
($ per tonne) | | |
(thousands) | | |
($ per tonne) | | |
(thousands) | | |
($ per tonne) | |
Production costs | |
$ | 38,545 | | |
$ | 344 | | |
$ | 33,001 | | |
$ | 374 | | |
$ | 76,504 | | |
$ | 384 | | |
$ | 65,315 | | |
$ | 483 | |
Production costs (C$) | |
$ | 51,994 | | |
$ | 464 | | |
$ | 42,211 | | |
$ | 479 | | |
$ | 103,236 | | |
$ | 519 | | |
$ | 83,041 | | |
$ | 615 | |
Inventory adjustments (C$)(ii) | |
| (359 | ) | |
| (3 | ) | |
| 1,278 | | |
| 14 | | |
| (2,076 | ) | |
| (10 | ) | |
| (1,366 | ) | |
| (10 | ) |
Purchase price allocation to inventory(C$)(iv) | |
| — | | |
| — | | |
| 450 | | |
| 5 | | |
| — | | |
| — | | |
| (13,128 | ) | |
| (97 | ) |
Other adjustments (C$)(v) | |
| 4,775 | | |
| 42 | | |
| 1,725 | | |
| 21 | | |
| 6,291 | | |
| 30 | | |
| 1,657 | | |
| 12 | |
Minesite operating costs (C$) | |
$ | 56,410 | | |
$ | 503 | | |
$ | 45,664 | | |
$ | 519 | | |
$ | 107,451 | | |
$ | 539 | | |
$ | 70,204 | | |
$ | 520 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Meliadine mine Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | | |
| 87,682 | | |
| | | |
| 97,572 | | |
| | | |
| 178,149 | | |
| | | |
| 178,276 | |
| |
(thousands) | | |
($ per ounce) | | |
(thousands) | | |
($ per ounce) | | |
(thousands) | | |
($ per ounce) | | |
(thousands) | | |
($ per ounce) | |
Production costs | |
$ | 78,817 | | |
$ | 899 | | |
$ | 86,386 | | |
$ | 885 | | |
$ | 160,011 | | |
$ | 898 | | |
$ | 165,065 | | |
$ | 926 | |
Inventory adjustments(ii) | |
| 11,228 | | |
| 128 | | |
| (3,671 | ) | |
| (38 | ) | |
| 14,852 | | |
| 83 | | |
| (39 | ) | |
| — | |
Realized gains and losses on hedges of production costs | |
| (451 | ) | |
| (5 | ) | |
| (884 | ) | |
| (9 | ) | |
| (363 | ) | |
| (2 | ) | |
| (2,195 | ) | |
| (13 | ) |
Other adjustments(v) | |
| (118 | ) | |
| (2 | ) | |
| 68 | | |
| 1 | | |
| (13 | ) | |
| — | | |
| 163 | | |
| 1 | |
Cash operating costs (co-product basis) | |
$ | 89,476 | | |
$ | 1,020 | | |
$ | 81,899 | | |
$ | 839 | | |
$ | 174,487 | | |
$ | 979 | | |
$ | 162,994 | | |
$ | 914 | |
By-product metal revenues | |
| (139 | ) | |
| (1 | ) | |
| (188 | ) | |
| (2 | ) | |
| (339 | ) | |
| (1 | ) | |
| (405 | ) | |
| (2 | ) |
Cash operating costs (by-product basis) | |
$ | 89,337 | | |
$ | 1,019 | | |
$ | 81,711 | | |
$ | 837 | | |
$ | 174,148 | | |
$ | 978 | | |
$ | 162,589 | | |
$ | 912 | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Meliadine mine Per Tonne | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| | |
461 | | |
| | |
449 | | |
| | |
937 | | |
| | |
881 | |
| |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | |
Production costs | |
$ | 78,817 | | |
$ | 171 | | |
$ | 86,386 | | |
$ | 192 | | |
$ | 160,011 | | |
$ | 171 | | |
$ | 165,065 | | |
$ | 187 | |
Production costs (C$) | |
$ | 105,834 | | |
$ | 230 | | |
$ | 109,488 | | |
$ | 244 | | |
$ | 214,715 | | |
$ | 229 | | |
$ | 208,925 | | |
$ | 237 | |
Inventory adjustments (C$)(ii) | |
| 14,556 | | |
| 31 | | |
| (4,241 | ) | |
| (10 | ) | |
| 19,606 | | |
| 21 | | |
| 284 | | |
| — | |
Minesite operating costs (C$) | |
$ | 120,390 | | |
$ | 261 | | |
$ | 105,247 | | |
$ | 234 | | |
$ | 234,321 | | |
$ | 250 | | |
$ | 209,209 | | |
$ | 237 | |
Meadowbank complex Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | |
94,775 | | |
| | |
96,698 | | |
| | |
205,885 | | |
| | |
156,463 | |
| |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | |
Production costs | |
$ | 117,488 | | |
$ | 1,240 | | |
$ | 107,373 | | |
$ | 1,110 | | |
$ | 247,492 | | |
$ | 1,202 | | |
$ | 204,084 | | |
$ | 1,304 | |
Inventory adjustments(ii) | |
| (5,048 | ) | |
| (54 | ) | |
| (9,132 | ) | |
| (94 | ) | |
| (6,702 | ) | |
| (32 | ) | |
| 6,071 | | |
| 39 | |
Realized gains and losses on hedges of production costs | |
| (2,118 | ) | |
| (22 | ) | |
| (1,631 | ) | |
| (17 | ) | |
| (3,617 | ) | |
| (18 | ) | |
| (3,674 | ) | |
| (23 | ) |
Operational care & maintenance due to COVID-19(iii) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,436 | ) | |
| (9 | ) |
Other adjustments(v) | |
| 4 | | |
| — | | |
| (26 | ) | |
| — | | |
| (51 | ) | |
| — | | |
| 40 | | |
| — | |
Cash operating costs (co-product basis) | |
$ | 110,326 | | |
$ | 1,164 | | |
$ | 96,584 | | |
$ | 999 | | |
$ | 237,122 | | |
$ | 1,152 | | |
$ | 205,085 | | |
$ | 1,311 | |
By-product metal revenues | |
| (723 | ) | |
| (8 | ) | |
| (587 | ) | |
| (6 | ) | |
| (1,548 | ) | |
| (8 | ) | |
| (882 | ) | |
| (6 | ) |
Cash operating costs (by-product basis) | |
$ | 109,603 | | |
$ | 1,156 | | |
$ | 95,997 | | |
$ | 993 | | |
$ | 235,574 | | |
$ | 1,144 | | |
$ | 204,203 | | |
$ | 1,305 | |
Meadowbank complex Per Tonne | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| | |
845 | | |
| | |
930 | | |
| | |
1,828 | | |
| | |
1,785 | |
| |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | |
Production costs | |
$ | 117,488 | | |
$ | 139 | | |
$ | 107,373 | | |
$ | 116 | | |
$ | 247,492 | | |
$ | 135 | | |
$ | 204,084 | | |
$ | 114 | |
Production costs (C$) | |
$ | 157,407 | | |
$ | 186 | | |
$ | 136,663 | | |
$ | 147 | | |
$ | 330,385 | | |
$ | 181 | | |
$ | 259,128 | | |
$ | 145 | |
Inventory adjustments (C$)(ii) | |
| (6,632 | ) | |
| (8 | ) | |
| (10,911 | ) | |
| (12 | ) | |
| (8,858 | ) | |
| (5 | ) | |
| 7,897 | | |
| 5 | |
Operational care and maintenance due to COVID-19 (C$)(iii) | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,793 | ) | |
| (1 | ) |
Minesite operating costs (C$) | |
$ | 150,775 | | |
$ | 178 | | |
$ | 125,752 | | |
$ | 135 | | |
$ | 321,527 | | |
$ | 176 | | |
$ | 265,232 | | |
$ | 149 | |
Fosterville mine Per Ounce of Gold Produced | |
Three Months Ended June 30, 2023 | | |
Three Months Ended June 30, 2022 | | |
Six Months Ended June 30, 2023 | | |
Six Months Ended June 30, 2022 | |
Gold production (ounces) | |
| | |
81,813 | | |
| | |
86,065 | | |
| | |
168,371 | | |
| | |
167,892 | |
| |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | |
Production costs | |
$ | 35,831 | | |
$ | 438 | | |
$ | 48,303 | | |
$ | 561 | | |
$ | 72,430 | | |
$ | 430 | | |
$ | 136,304 | | |
$ | 812 | |
Inventory adjustments(ii) | |
| (522 | ) | |
| (6 | ) | |
| (970 | ) | |
| (12 | ) | |
| (2,885 | ) | |
| (17 | ) | |
| (6,809 | ) | |
| (41 | ) |
Realized gains and losses on hedges of production costs | |
| 489 | | |
| 6 | | |
| — | | |
| — | | |
| 677 | | |
| 4 | | |
| — | | |
| — | |
Purchase price allocation to inventory(iv) | |
| — | | |
| — | | |
| (16,997 | ) | |
| (197 | ) | |
| — | | |
| — | | |
| (73,674 | ) | |
| (439 | ) |
Other adjustments(v) | |
| (7 | ) | |
| (1 | ) | |
| — | | |
| — | | |
| 39 | | |
| — | | |
| — | | |
| — | |
Cash operating costs (co-product basis) | |
$ | 35,791 | | |
$ | 437 | | |
$ | 30,336 | | |
$ | 352 | | |
$ | 70,261 | | |
$ | 417 | | |
$ | 55,821 | | |
$ | 332 | |
By-product metal revenues | |
| (121 | ) | |
| (1 | ) | |
| (125 | ) | |
| (1 | ) | |
| (278 | ) | |
| (1 | ) | |
| (313 | ) | |
| (1 | ) |
Cash operating costs (by-product basis) | |
$ | 35,670 | | |
$ | 436 | | |
$ | 30,211 | | |
$ | 351 | | |
$ | 69,983 | | |
$ | 416 | | |
$ | 55,508 | | |
$ | 331 | |
Fosterville mine
Per Tonne |
|
Three
Months Ended
June 30, 2023 |
|
|
Three
Months Ended
June 30, 2022 |
|
|
Six
Months Ended
June 30, 2023 |
|
|
Six
Months Ended
June 30, 2022 |
|
Tonnes of ore
milled (thousands of tonnes) |
|
|
|
|
176 |
|
|
|
|
|
122 |
|
|
|
|
|
324 |
|
|
|
|
|
213 |
|
|
|
|
(thousands) |
|
|
|
($ per
tonne) |
|
|
|
(thousands) |
|
|
|
($ per
tonne) |
|
|
|
(thousands) |
|
|
|
($ per
tonne) |
|
|
|
(thousands) |
|
|
|
($ per
tonne) |
|
Production costs |
|
$ |
35,831 |
|
|
$ |
204 |
|
|
$ |
48,303 |
|
|
$ |
396 |
|
|
$ |
72,430 |
|
|
$ |
224 |
|
|
$ |
136,304 |
|
|
$ |
641 |
|
Production costs (A$) |
|
A$ |
54,280 |
|
|
A$ |
308 |
|
|
A$ |
71,814 |
|
|
A$ |
597 |
|
|
A$ |
108,462 |
|
|
A$ |
335 |
|
|
A$ |
189,040 |
|
|
A$ |
890 |
|
Inventory adjustments (A$)(ii) |
|
|
(756 |
) |
|
|
(4 |
) |
|
|
(1,204 |
) |
|
|
(9 |
) |
|
|
(4,357 |
) |
|
|
(14 |
) |
|
|
(9,409 |
) |
|
|
(43 |
) |
Purchase price allocation
to inventory(A$)(iv) |
|
|
— |
|
|
|
— |
|
|
|
(26,678 |
) |
|
|
(218 |
) |
|
|
— |
|
|
|
— |
|
|
|
(102,178 |
) |
|
|
(478 |
) |
Minesite operating costs (A$) |
|
A$ |
53,524 |
|
|
A$ |
304 |
|
|
A$ |
43,932 |
|
|
A$ |
370 |
|
|
A$ |
104,105 |
|
|
A$ |
321 |
|
|
A$ |
77,453 |
|
|
A$ |
369 |
|
| |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Kittila mine Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | |
50,130 | | |
| | |
64,814 | | |
| | |
113,822 | | |
| | |
110,322 | |
| |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | |
Production costs | |
$ | 43,336 | | |
$ | 864 | | |
$ | 53,315 | | |
$ | 823 | | |
$ | 96,631 | | |
$ | 849 | | |
$ | 102,766 | | |
$ | 932 | |
Inventory adjustments(ii) | |
| 2,784 | | |
| 56 | | |
| (1,164 | ) | |
| (19 | ) | |
| 2,744 | | |
| 24 | | |
| (3,955 | ) | |
| (36 | ) |
Realized gains and losses on hedges of production costs | |
| (925 | ) | |
| (18 | ) | |
| 1,542 | | |
| 24 | | |
| (1,558 | ) | |
| (14 | ) | |
| 2,220 | | |
| 20 | |
Other adjustments(v) | |
| (50 | ) | |
| (1 | ) | |
| 39 | | |
| 1 | | |
| (1,273 | ) | |
| (11 | ) | |
| 93 | | |
| 1 | |
Cash operating costs (co-product basis) | |
$ | 45,145 | | |
$ | 901 | | |
$ | 53,732 | | |
$ | 829 | | |
$ | 96,544 | | |
$ | 848 | | |
$ | 101,124 | | |
$ | 917 | |
By-product metal revenues | |
| (93 | ) | |
| (2 | ) | |
| (78 | ) | |
| (1 | ) | |
| (162 | ) | |
| (1 | ) | |
| (167 | ) | |
| (2 | ) |
Cash operating costs (by-product basis) | |
$ | 45,052 | | |
$ | 899 | | |
$ | 53,654 | | |
$ | 828 | | |
$ | 96,382 | | |
$ | 847 | | |
$ | 100,957 | | |
$ | 915 | |
Kittila mine Per Tonne | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore milled (thousands of tonnes) | |
| | | |
| 417 | | |
| | | |
| 556 | | |
| | | |
| 913 | | |
| | | |
| 1,017 | |
| |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | |
Production costs | |
$ | 43,336 | | |
$ | 104 | | |
$ | 53,315 | | |
$ | 96 | | |
$ | 96,631 | | |
$ | 106 | | |
$ | 102,766 | | |
$ | 101 | |
Production costs (€) | |
€ | 42,251 | | |
€ | 101 | | |
€ | 49,550 | | |
€ | 89 | | |
€ | 91,002 | | |
€ | 100 | | |
€ | 93,458 | | |
€ | 92 | |
Inventory adjustments (€)(ii) | |
| 946 | | |
| 3 | | |
| (655 | ) | |
| (1 | ) | |
| 832 | | |
| 1 | | |
| (2,929 | ) | |
| (3 | ) |
Minesite operating costs (€) | |
€ | 43,197 | | |
€ | 104 | | |
€ | 48,895 | | |
€ | 88 | | |
€ | 91,834 | | |
€ | 101 | | |
€ | 90,529 | | |
€ | 89 | |
Pinos Altos mine Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | |
22,159 | | |
| | |
23,020 | | |
| | |
46,293 | | |
| | |
48,190 | |
| |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | |
Production costs | |
$ | 34,709 | | |
$ | 1,566 | | |
$ | 39,873 | | |
$ | 1,732 | | |
$ | 67,631 | | |
$ | 1,461 | | |
$ | 72,409 | | |
$ | 1,503 | |
Inventory adjustments(ii) | |
| 761 | | |
| 34 | | |
| (2,955 | ) | |
| (128 | ) | |
| 513 | | |
| 11 | | |
| (2,156 | ) | |
| (45 | ) |
Realized gains and losses on hedges of production costs | |
| (690 | ) | |
| (31 | ) | |
| (313 | ) | |
| (14 | ) | |
| (1,143 | ) | |
| (25 | ) | |
| (547 | ) | |
| (11 | ) |
Other adjustments(v) | |
| 286 | | |
| 13 | | |
| 322 | | |
| 14 | | |
| 578 | | |
| 13 | | |
| 625 | | |
| 12 | |
Cash operating costs (co-product basis) | |
$ | 35,066 | | |
$ | 1,582 | | |
$ | 36,927 | | |
$ | 1,604 | | |
$ | 67,579 | | |
$ | 1,460 | | |
$ | 70,331 | | |
$ | 1,459 | |
By-product metal revenues | |
| (6,653 | ) | |
| (300 | ) | |
| (5,082 | ) | |
| (221 | ) | |
| (12,227 | ) | |
| (264 | ) | |
| (11,345 | ) | |
| (235 | ) |
Cash operating costs (by-product basis) | |
$ | 28,413 | | |
$ | 1,282 | | |
$ | 31,845 | | |
$ | 1,383 | | |
$ | 55,352 | | |
$ | 1,196 | | |
$ | 58,986 | | |
$ | 1,224 | |
Pinos Altos mine Per Tonne | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore processed (thousands of tonnes) | |
| | |
401 | | |
| | |
366 | | |
| | |
765 | | |
| | |
750 | |
| |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | |
Production costs | |
$ | 34,709 | | |
$ | 87 | | |
$ | 39,873 | | |
$ | 109 | | |
$ | 67,631 | | |
$ | 88 | | |
$ | 72,409 | | |
$ | 97 | |
Inventory adjustments(ii) | |
| 1,905 | | |
| 3 | | |
| (2,955 | ) | |
| (8 | ) | |
| 1,657 | | |
| 3 | | |
| (2,156 | ) | |
| (3 | ) |
Minesite operating costs | |
$ | 36,614 | | |
$ | 90 | | |
$ | 36,918 | | |
$ | 101 | | |
$ | 69,288 | | |
$ | 91 | | |
$ | 70,253 | | |
$ | 94 | |
Creston Mascota mine Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | |
165 | | |
| | |
635 | | |
| | |
409 | | |
| | |
1,641 | |
| |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | |
Production costs | |
$ | — | | |
$ | — | | |
$ | 484 | | |
$ | 762 | | |
$ | — | | |
$ | — | | |
$ | 1,099 | | |
$ | 670 | |
Inventory adjustments(ii) | |
| — | | |
| — | | |
| 60 | | |
| 95 | | |
| — | | |
| — | | |
| (27 | ) | |
| (16 | ) |
Other adjustments(v) | |
| — | | |
| — | | |
| 30 | | |
| 49 | | |
| — | | |
| — | | |
| 48 | | |
| 29 | |
Cash operating costs (co-product basis) | |
$ | — | | |
$ | — | | |
$ | 574 | | |
$ | 906 | | |
$ | — | | |
$ | — | | |
$ | 1,120 | | |
$ | 683 | |
By-product metal revenues | |
| — | | |
| — | | |
| (5 | ) | |
| (7 | ) | |
| — | | |
| — | | |
| (140 | ) | |
| (85 | ) |
Cash operating costs (by-product basis) | |
$ | — | | |
$ | — | | |
$ | 569 | | |
$ | 899 | | |
$ | — | | |
$ | — | | |
$ | 980 | | |
$ | 598 | |
Creston Mascota mine Per Tonne(vi) | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore processed (thousands of tonnes) | |
| | |
— | | |
| | |
— | | |
| | |
— | | |
| | |
— | |
| |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | |
Production costs | |
$ | — | | |
$ | — | | |
$ | 484 | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | 1,099 | | |
$ | — | |
Inventory adjustments(ii) | |
| — | | |
| — | | |
| 60 | | |
| — | | |
| — | | |
| — | | |
| (27 | ) | |
| — | |
Other adjustments(v) | |
| — | | |
| — | | |
| (544 | ) | |
| — | | |
| — | | |
| — | | |
| (1,072 | ) | |
| — | |
Minesite operating costs | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | — | |
La India mine Per Ounce of Gold Produced | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Gold production (ounces) | |
| | |
17,833 | | |
| | |
20,016 | | |
| | |
34,154 | | |
| | |
41,718 | |
| |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | | |
| (thousands) | | |
| ($ per ounce) | |
Production costs | |
$ | 23,649 | | |
$ | 1,326 | | |
$ | 17,455 | | |
$ | 872 | | |
$ | 43,741 | | |
$ | 1,281 | | |
$ | 35,190 | | |
$ | 844 | |
Inventory adjustments(ii) | |
| 1,318 | | |
| 74 | | |
| 1,564 | | |
| 78 | | |
| 2,766 | | |
| 80 | | |
| 2,132 | | |
| 51 | |
Other adjustments(v) | |
| 134 | | |
| 8 | | |
| 177 | | |
| 9 | | |
| 263 | | |
| 8 | | |
| 373 | | |
| 9 | |
Cash operating costs (co-product basis) | |
$ | 25,101 | | |
$ | 1,408 | | |
$ | 19,196 | | |
$ | 959 | | |
$ | 46,770 | | |
$ | 1,369 | | |
$ | 37,695 | | |
$ | 904 | |
By-product metal revenues | |
| (407 | ) | |
| (23 | ) | |
| (451 | ) | |
| (23 | ) | |
| (722 | ) | |
| (21 | ) | |
| (1,159 | ) | |
| (28 | ) |
Cash operating costs (by-product basis) | |
$ | 24,694 | | |
$ | 1,385 | | |
$ | 18,745 | | |
$ | 936 | | |
$ | 46,048 | | |
$ | 1,348 | | |
$ | 36,536 | | |
$ | 876 | |
La India mine Per Tonne | |
Three Months Ended
June 30, 2023 | | |
Three Months Ended
June 30, 2022 | | |
Six Months Ended
June 30, 2023 | | |
Six Months Ended
June 30, 2022 | |
Tonnes of ore processed (thousands of tonnes) | |
| | |
880 | | |
| | |
1,356 | | |
| | |
1,540 | | |
| | |
2,919 | |
| |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | | |
| (thousands) | | |
| ($ per tonne) | |
Production costs | |
$ | 23,649 | | |
$ | 27 | | |
$ | 17,455 | | |
$ | 13 | | |
$ | 43,741 | | |
$ | 28 | | |
$ | 35,190 | | |
$ | 12 | |
Inventory adjustments(ii) | |
| 1,318 | | |
| 1 | | |
| 1,564 | | |
| 1 | | |
| 2,766 | | |
| 2 | | |
| 2,132 | | |
| 1 | |
Minesite operating costs | |
$ | 24,967 | | |
$ | 28 | | |
$ | 19,019 | | |
$ | 14 | | |
$ | 46,507 | | |
$ | 30 | | |
$ | 37,322 | | |
$ | 13 | |
Notes: |
|
|
|
(i) The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter. |
|
(ii) Under the Company’s revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. |
|
(iii) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company's mine sites in response to the COVID-19 pandemic and includes primarily payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working during the period of reduced or suspended operations. These expenses also include payroll costs of employees who could not work following the period of temporary suspension or reduced operations due to the Company's effort to prevent or curtail community transmission of COVID-19. These costs were previously classified as "other adjustments" and have now been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand the impact of such events on the total cash costs per ounce and minesite cost per tonne. |
|
(iv) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa, and Fosterville mines as part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction and this adjustment reflects the fair value allocated to inventory at the Canadian Malartic complex as part of the purchase price allocation. |
|
(v) Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty paid in respect of the Macassa mine, smelting, refining, and marketing charges to production costs. |
|
(vi) The Creston Mascota mine's cost calculations per tonne for the three and six months ended June 30, 2022 excludes approximately $0.5 and $1.1 million of production costs incurred during the period, respectively, following the ceasing of mining activities at the Bravo pit during the third quarter of 2020. |
Reconciliation of Production Costs to Total Cash Costs per Ounce Produced(vii) and All-in Sustaining Costs per Ounce of Gold Produced(vii) |
|
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company’s use of the non-GAAP measure all-in sustaining costs per ounce of gold produced. |
|
The following tables set out a reconciliation of production costs to the Company's use of the non-GAAP measure all-in sustaining costs per ounce of gold produced for the six months ended June 30, 2023 and June 30, 2022 on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal revenues). |
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(United States dollars per ounce of gold produced, except where noted) |
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Production costs per the condensed interim consolidated statements of income (thousands of United States dollars) |
|
$ |
743,253 |
|
|
$ |
657,636 |
|
|
$ |
1,396,397 |
|
|
$ |
1,319,371 |
|
Gold production (ounces) |
|
|
873,204 |
|
|
|
858,170 |
|
|
|
1,686,017 |
|
|
|
1,518,774 |
|
Production costs per ounce of adjusted gold production |
|
$ |
851 |
|
|
$ |
766 |
|
|
$ |
828 |
|
|
$ |
869 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory adjustments(i) |
|
|
1 |
|
|
|
14 |
|
|
|
14 |
|
|
|
12 |
|
Purchase price allocation to inventory(ii) |
|
|
(26 |
) |
|
|
(46 |
) |
|
|
(13 |
) |
|
|
(101 |
) |
Realized gains and losses on hedges of production costs |
|
|
1 |
|
|
|
(2 |
) |
|
|
3 |
|
|
|
(3 |
) |
Operational care and maintenance costs due to COVID-19(iii) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Other(iv) |
|
|
43 |
|
|
|
26 |
|
|
|
34 |
|
|
|
24 |
|
Total cash costs per ounce of gold produced (co-product basis)(v) |
|
$ |
870 |
|
|
$ |
758 |
|
|
$ |
866 |
|
|
$ |
800 |
|
By-product metal revenues |
|
|
(30 |
) |
|
|
(32 |
) |
|
|
(30 |
) |
|
|
(37 |
) |
Total cash costs per ounce of gold produced (by-product basis)(v) |
|
$ |
840 |
|
|
$ |
726 |
|
|
$ |
836 |
|
|
$ |
763 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sustaining capital expenditures (including capitalized exploration) |
|
|
237 |
|
|
|
231 |
|
|
|
226 |
|
|
|
197 |
|
General and administrative expenses (including stock option expense) |
|
|
54 |
|
|
|
57 |
|
|
|
57 |
|
|
|
77 |
|
Non-cash reclamation provision and sustaining leases(vi) |
|
|
19 |
|
|
|
12 |
|
|
|
19 |
|
|
|
14 |
|
All-in sustaining costs per ounce of gold produced (by-product basis) |
|
$ |
1,150 |
|
|
$ |
1,026 |
|
|
$ |
1,138 |
|
|
$ |
1,051 |
|
By-product metal revenues |
|
|
30 |
|
|
|
32 |
|
|
|
30 |
|
|
|
37 |
|
All-in sustaining costs per ounce of gold produced (co-product basis) |
|
$ |
1,180 |
|
|
$ |
1,058 |
|
|
$ |
1,168 |
|
|
$ |
1,088 |
|
Notes:
(i) |
Under the Company's revenue recognition policy, revenue
from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs
per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production
not yet recognized as revenue. |
|
|
(ii) |
On February 8, 2022, the Company completed
the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa and Fosterville mines as
part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction
and this adjustment reflects the fair value allocated to inventory at the Canadian Malartic
complex as part of the purchase price allocation. |
|
|
(iii) |
This adjustment reflects the costs associated with the temporary suspension
of mining activities at the Company's mine sites in response to the COVID-19 pandemic which primarily includes payroll and other
incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working
during the period of reduced or suspended operations. These costs were previously classified as "other adjustments" and,
as of 2022, have been disclosed separately to provide additional detail on the reconciliation, allowing investors to better understand
the impact of such events on the total cash costs per ounce and minesite cost per tonne. |
|
|
(iv) |
Other adjustments consists of costs associated with a 5% in-kind royalty
paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind royalty
paid in respect of the Macassa mine, smelting, refining and marketing charges to production costs. |
|
|
(v) |
The total cash costs per ounce of gold produced is not a recognized
measure under IFRS and this data may not be comparable to data reported by other gold producers. See Non-GAAP Financial Performance
Measures — Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne for more information on the Company’s
use of total cash cost per ounce of gold produced. |
|
|
(vi) |
Sustaining leases are lease payments related to sustaining assets. |
Reconciliation of Operating Margin(i) to Net Income |
|
|
|
|
|
|
|
|
|
|
|
Refer to Note to Investors Concerning Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's disclosure of the non-GAAP measure operating margin. |
|
The following table sets out a reconciliation of net income to operating margin for the six months ended June 30, 2023 and June 30, 2022. |
| |
Three Months Ended June 30, 2023 | |
| |
| Revenues from | | |
| | | |
| | |
| |
| Mining | | |
| Production | | |
| Operating | |
| |
| Operations | | |
| Costs | | |
| Margin | |
LaRonde mine | |
$ | 133,865 | | |
$ | (63,969 | ) | |
$ | 69,896 | |
LaRonde Zone 5 mine | |
| 36,558 | | |
| (21,763 | ) | |
| 14,795 | |
Canadian Malartic complex(ii) | |
| 335,871 | | |
| (144,190 | ) | |
| 191,681 | |
Goldex mine | |
| 73,272 | | |
| (28,160 | ) | |
| 45,112 | |
Detour Lake mine | |
| 317,068 | | |
| (112,796 | ) | |
| 204,272 | |
Macassa mine | |
| 112,879 | | |
| (38,545 | ) | |
| 74,334 | |
Meliadine mine | |
| 157,179 | | |
| (78,817 | ) | |
| 78,362 | |
Meadowbank complex | |
| 195,856 | | |
| (117,488 | ) | |
| 78,368 | |
Fosterville mine | |
| 168,074 | | |
| (35,831 | ) | |
| 132,243 | |
Kittila mine | |
| 102,868 | | |
| (43,336 | ) | |
| 59,532 | |
Pinos Altos mine | |
| 50,389 | | |
| (34,709 | ) | |
| 15,680 | |
La India mine | |
| 34,318 | | |
| (23,649 | ) | |
| 10,669 | |
Segment totals | |
$ | 1,718,197 | | |
$ | (743,253 | ) | |
$ | 974,944 | |
Corporate and other: | |
| | | |
| | | |
| | |
Exploration and corporate development | |
| | | |
| | | |
| 54,422 | |
Amortization of property, plant, and mine development | |
| | | |
| | | |
| 381,262 | |
General and administrative | |
| | | |
| | | |
| 47,312 | |
Finance costs | |
| | | |
| | | |
| 35,837 | |
Gain on derivative financial instruments | |
| | | |
| | | |
| (26,433 | ) |
Environmental remediation | |
| | | |
| | | |
| (1,420 | ) |
Foreign currency translation loss | |
| | | |
| | | |
| 4,014 | |
Care and maintenance | |
| | | |
| | | |
| 9,411 | |
Other expenses | |
| | | |
| | | |
| 4,199 | |
Income and mining taxes expense | |
| | | |
| | | |
| 139,519 | |
Net income per condensed interim consolidated statements of income | |
| | | |
| | | |
$ | 326,821 | |
Notes:
(i) |
Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported
by other gold producers. See "Note Regarding Certain Measures of Performance" for more information on the Company’s
use of operating margin. |
|
|
(ii) |
The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex
up to and including March 30, 2023 and 100% interest thereafter. |
Reconciliation of Operating Margin(i) to Net Income
| |
Six Months Ended June 30, 2023 | |
| |
| Revenues from | | |
| | | |
| | |
| |
| Mining | | |
| Production | | |
| Operating | |
| |
| Operations | | |
| Costs | | |
| Margin | |
LaRonde mine | |
$ | 236,085 | | |
$ | (103,676 | ) | |
$ | 132,409 | |
LaRonde Zone 5 mine | |
| 66,080 | | |
| (43,987 | ) | |
| 22,093 | |
Canadian Malartic complex(ii) | |
| 473,945 | | |
| (201,481 | ) | |
| 272,464 | |
Goldex mine | |
| 141,335 | | |
| (55,995 | ) | |
| 85,340 | |
Detour Lake mine | |
| 623,663 | | |
| (226,818 | ) | |
| 396,845 | |
Macassa mine | |
| 230,738 | | |
| (76,504 | ) | |
| 154,234 | |
Meliadine mine | |
| 326,713 | | |
| (160,011 | ) | |
| 166,702 | |
Meadowbank complex | |
| 405,669 | | |
| (247,492 | ) | |
| 158,177 | |
Fosterville mine | |
| 337,375 | | |
| (72,430 | ) | |
| 264,945 | |
Kittila mine | |
| 218,887 | | |
| (96,631 | ) | |
| 122,256 | |
Pinos Altos mine | |
| 101,837 | | |
| (67,631 | ) | |
| 34,206 | |
La India mine | |
| 65,531 | | |
| (43,741 | ) | |
| 21,790 | |
Segment totals | |
$ | 3,227,858 | | |
$ | (1,396,397 | ) | |
$ | 1,831,461 | |
Corporate and other: | |
| | | |
| | | |
| | |
Exploration and corporate development | |
| | | |
| | | |
| 108,190 | |
Amortization of property, plant, and mine development | |
| | | |
| | | |
| 685,221 | |
General and administrative | |
| | | |
| | | |
| 95,520 | |
Finance costs | |
| | | |
| | | |
| 59,285 | |
Gain on derivative financial instruments | |
| | | |
| | | |
| (32,972 | ) |
Environmental remediation | |
| | | |
| | | |
| (1,977 | ) |
Foreign currency translation loss | |
| | | |
| | | |
| 4,234 | |
Care and maintenance | |
| | | |
| | | |
| 20,656 | |
Revaluation gain | |
| | | |
| | | |
| (1,543,414 | ) |
Other expenses | |
| | | |
| | | |
| 24,879 | |
Income and mining taxes expense | |
| | | |
| | | |
| 268,127 | |
Net income per condensed interim consolidated statements of income | |
| | | |
| | | |
$ | 2,143,712 | |
Notes:
(i) |
Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported
by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company’s use of
operating margin. |
|
|
(ii) |
The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex
up to and including March 30, 2023 and 100% interest thereafter. |
Reconciliation of Operating Margin(i) to Net Income
| |
Three Months Ended June 30, 2022(ii) | |
| |
| Revenues from | | |
| | | |
| | |
| |
| Mining | | |
| Production | | |
| Operating | |
| |
| Operations | | |
| Costs | | |
| Margin | |
LaRonde mine | |
$ | 124,826 | | |
$ | (33,949 | ) | |
$ | 90,877 | |
LaRonde Zone 5 mine | |
| 24,999 | | |
| (17,133 | ) | |
| 7,866 | |
Canadian Malartic complex(iii) | |
| 160,866 | | |
| (56,405 | ) | |
| 104,461 | |
Goldex mine | |
| 68,186 | | |
| (26,530 | ) | |
| 41,656 | |
Detour Lake mine | |
| 352,270 | | |
| (137,429 | ) | |
| 214,841 | |
Macassa mine | |
| 107,779 | | |
| (33,001 | ) | |
| 74,778 | |
Meliadine mine | |
| 183,126 | | |
| (86,386 | ) | |
| 96,740 | |
Meadowbank complex | |
| 175,417 | | |
| (107,373 | ) | |
| 68,044 | |
Fosterville mine | |
| 173,745 | | |
| (48,303 | ) | |
| 125,442 | |
Kittila mine | |
| 120,926 | | |
| (53,315 | ) | |
| 67,611 | |
Pinos Altos mine | |
| 51,360 | | |
| (39,873 | ) | |
| 11,487 | |
Creston Mascota mine | |
| 1,126 | | |
| (484 | ) | |
| 642 | |
La India mine | |
| 36,432 | | |
| (17,455 | ) | |
| 18,977 | |
Segment totals | |
$ | 1,581,058 | | |
$ | (657,636 | ) | |
$ | 923,422 | |
Corporate and other: | |
| | | |
| | | |
| | |
Exploration and corporate development | |
| | | |
| | | |
| 70,352 | |
Amortization of property, plant, and mine development | |
| | | |
| | | |
| 269,891 | |
General and administrative | |
| | | |
| | | |
| 49,275 | |
Finance costs | |
| | | |
| | | |
| 20,961 | |
Loss on derivative financial instruments | |
| | | |
| | | |
| 40,753 | |
Environmental remediation | |
| | | |
| | | |
| (319 | ) |
Foreign currency translation gain | |
| | | |
| | | |
| (13,492 | ) |
Care and maintenance | |
| | | |
| | | |
| 9,257 | |
Other expenses | |
| | | |
| | | |
| 19,893 | |
Income and mining taxes expense | |
| | | |
| | | |
| 166,462 | |
Net income per condensed interim consolidated statements of income | |
| | | |
| | | |
$ | 290,389 | |
Notes:
(i) |
Operating margin is not a recognized measure under IFRS and this data may not be comparable to data reported
by other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of operating
margin. |
|
|
(ii) |
Certain previously reported line items have been restated to reflect the final purchase price allocation
of the Merger. |
|
|
(iii) |
The information set out in this table reflects the Company's 50% interest in the Canadian Malartic complex
up to and including March 30, 2023 and 100% interest thereafter. |
Reconciliation of Operating Margin(i) to Net Income
| |
Six Months Ended June 30, 2022(ii) | |
| |
| Revenues from | | |
| | | |
| | |
| |
| Mining | | |
| Production | | |
| Operating | |
| |
| Operations | | |
| Costs | | |
| Margin | |
LaRonde mine | |
$ | 274,231 | | |
$ | (79,790 | ) | |
$ | 194,441 | |
LaRonde Zone 5 mine | |
| 58,388 | | |
| (33,866 | ) | |
| 24,522 | |
Canadian Malartic complex(iii) | |
| 297,105 | | |
| (113,342 | ) | |
| 183,763 | |
Goldex mine | |
| 131,521 | | |
| (52,747 | ) | |
| 78,774 | |
Detour Lake mine | |
| 600,293 | | |
| (257,394 | ) | |
| 342,899 | |
Macassa mine | |
| 164,248 | | |
| (65,315 | ) | |
| 98,933 | |
Meliadine mine | |
| 346,084 | | |
| (165,065 | ) | |
| 181,019 | |
Meadowbank complex | |
| 266,930 | | |
| (204,084 | ) | |
| 62,846 | |
Hope Bay mine | |
| 144 | | |
| — | | |
| 144 | |
Fosterville mine | |
| 368,602 | | |
| (136,304 | ) | |
| 232,298 | |
Kittila mine | |
| 216,488 | | |
| (102,766 | ) | |
| 113,722 | |
Pinos Altos mine | |
| 103,327 | | |
| (72,409 | ) | |
| 30,918 | |
Creston Mascota mine | |
| 2,918 | | |
| (1,099 | ) | |
| 1,819 | |
La India mine | |
| 76,467 | | |
| (35,190 | ) | |
| 41,277 | |
Segment totals | |
$ | 2,906,746 | | |
$ | (1,319,371 | ) | |
$ | 1,587,375 | |
Corporate and other: | |
| | | |
| | | |
| | |
Exploration and corporate development | |
| | | |
| | | |
| 136,194 | |
Amortization of property, plant, and mine development | |
| | | |
| | | |
| 525,535 | |
General and administrative | |
| | | |
| | | |
| 116,817 | |
Finance costs | |
| | | |
| | | |
| 43,614 | |
Loss on derivative financial instruments | |
| | | |
| | | |
| 12,089 | |
Environmental remediation | |
| | | |
| | | |
| (2,618 | ) |
Foreign currency translation gain | |
| | | |
| | | |
| (12,282 | ) |
Care and maintenance | |
| | | |
| | | |
| 19,713 | |
Other expenses | |
| | | |
| | | |
| 111,791 | |
Income and mining taxes expense | |
| | | |
| | | |
| 227,057 | |
Net income per condensed interim consolidated statements of income | |
| | | |
| | | |
$ | 409,465 | |
Notes:
(i) |
Operating margin is not a recognized measure under IFRS and this data
may not be comparable to data reported by other gold producers. See Note Regarding Certain Measures of Performance for more
information on the Company’s use of operating margin. |
|
|
(ii) |
Certain previously reported line items have been restated to reflect the final purchase price allocation
of the Merger. |
|
|
(iii) |
The information set out in this table reflects the Company's 50% interest
in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter. |
Reconciliation of Sustaining Capital Expenditures(i) and
Development Capital Expenditures(i) to the Consolidated Statements of Cash Flows
| |
Three Months Ended June 30, | | |
Six Months Ended June 30, | |
| |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Sustaining capital expenditures(i)(ii) | |
$ | 206,914 | | |
$ | 198,024 | | |
$ | 381,545 | | |
$ | 299,750 | |
Development capital expenditures(i)(ii) | |
| 209,133 | | |
| 203,546 | | |
| 376,236 | | |
| 351,905 | |
Total Capital Expenditures | |
$ | 416,047 | | |
$ | 401,570 | | |
$ | 757,781 | | |
$ | 651,655 | |
Working capital adjustments | |
| 7,574 | | |
| 7,026 | | |
| 50,774 | | |
| 50,092 | |
Additions to property, plant and mine development per the condensed interim consolidated statements of cash flows | |
$ | 423,621 | | |
$ | 408,596 | | |
$ | 808,555 | | |
$ | 701,747 | |
Note:
(i) |
Sustaining capital expenditures and development capital expenditures are not recognized measures under
IFRS and this data may not be comparable to other gold producers. See Note on Certain Measures of Performance for more information
on the Company's use of the measures sustaining capital expenditures and development capital expenditures. |
|
|
(ii) |
Sustaining capital expenditures and development capital expenditures include capitalized exploration. |
Reconciliation of Long-Term Debt to Net
Debt
| |
As at | | |
As at | |
| |
June 30, 2023 | | |
December 31, 2022 | |
Current portion of long-term debt per the consolidated balance sheets | |
$ | — | | |
$ | 100,000 | |
Non-current portion of long-term debt | |
| 1,942,019 | | |
| 1,242,070 | |
Long-term debt | |
$ | 1,942,019 | | |
$ | 1,342,070 | |
Adjustments: | |
| | | |
| | |
Cash and cash equivalents | |
$ | (432,526 | ) | |
$ | (658,625 | ) |
Net Debt | |
$ | 1,509,493 | | |
$ | 683,445 | |
Reconciliation of Adjusted Net Income(i) to
Net Income
(thousands of United States dollars) |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
Restated(ii) |
|
|
|
|
|
Restated(ii) |
|
Net income for the period - basic |
|
$ |
326,821 |
|
|
$ |
290,389 |
|
|
$ |
2,143,712 |
|
|
$ |
409,465 |
|
Dilutive impact of cash settling LTIP |
|
|
(1,140 |
) |
|
|
(2,745 |
) |
|
|
(2,916 |
) |
|
|
398 |
|
Net income for the period - diluted |
|
$ |
325,681 |
|
|
$ |
287,644 |
|
|
$ |
2,140,796 |
|
|
$ |
409,863 |
|
Foreign currency translation loss (gain) |
|
|
4,014 |
|
|
|
(13,492 |
) |
|
|
4,234 |
|
|
|
(12,282 |
) |
Realized and unrealized (gain) loss on derivative financial instruments |
|
|
(26,433 |
) |
|
|
40,753 |
|
|
|
(32,972 |
) |
|
|
12,089 |
|
Transaction costs and severance related to acquisitions |
|
|
1,674 |
|
|
|
11,372 |
|
|
|
16,912 |
|
|
|
92,139 |
|
Revaluation gain on Yamana Transaction |
|
|
— |
|
|
|
— |
|
|
|
(1,543,414 |
) |
|
|
— |
|
Environmental remediation |
|
|
(1,420 |
) |
|
|
(319 |
) |
|
|
(1,977 |
) |
|
|
(2,618 |
) |
Integration costs |
|
|
— |
|
|
|
457 |
|
|
|
— |
|
|
|
457 |
|
Net loss on disposal of property,plant and equipment |
|
|
1,058 |
|
|
|
2,828 |
|
|
|
3,601 |
|
|
|
3,914 |
|
Purchase price allocation to inventory(iii) |
|
|
22,821 |
|
|
|
39,185 |
|
|
|
22,821 |
|
|
|
152,836 |
|
Income and mining taxes adjustments |
|
|
(6,121 |
) |
|
|
(9,516 |
) |
|
|
(19,223 |
) |
|
|
(49,398 |
) |
Adjusted net income for the period - basic |
|
$ |
322,414 |
|
|
$ |
361,657 |
|
|
$ |
593,694 |
|
|
$ |
606,602 |
|
Adjusted net income for the period - diluted |
|
$ |
321,274 |
|
|
$ |
358,912 |
|
|
$ |
590,778 |
|
|
$ |
607,000 |
|
Notes:
(i) | Adjusted net income is not a recognized
measure under IFRS and this data may not be comparable to other gold producers. See Note on Certain Measures of Performance for
more information on the Company's use of adjusted net income. |
| |
(ii) | Certain previously reported line items have been restated to reflect the final purchase price
allocation of the Kirkland Merger. |
| |
(iii) | As part of the purchase price allocation in a business combination, the Company is required to
determine the fair value of net assets acquired. These non-cash fair value adjustments which increased the cost of inventory sold
during the period and are not representative of ongoing operations, were normalized from net income. |
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