The Conversation (0)
(TheNewswire)
 | |||||||||
 |  |  | |||||||
Element79 Gold Corp. Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects
GET YOUR FREE INVESTOR KIT
Element79 Gold Corp.
Overview
Element79 Gold (CSE:ELEM,OTC:ELMGF) is an exploration and development mining company with the potential for near-term production through its Lucero project in Peru. The Lucero mine is one of the highest-grade underground mines in Peru’s history and is on the fast track for production. Additionally, the company’s two exploration projects in Nevada, Clover and West Whistler, create further opportunities for future resource development. A globally-experienced management team with a proven track record of success in developing operational mines leads Element79 toward fully realizing the potential of its assets.
Lucero is a past-producing, high-grade gold mine ready to reach production quickly. The mine operated between 1989 to 2005. Historic reports between 1998 and 2004 indicate that the mine produced approximately 18,800 ounces of gold and 435,000 ounces of silver per year at 19 grams per ton (g/t) gold equivalent. An NI 43-101 report prepared by a third party indicates grades up to 116.8 g/t gold equivalent. In addition to generating near-term cash flow, the 10,805-hectare Lucero project also has high upside potential for further greenfield exploration.
Peru is considered a relatively stable mining jurisdiction, especially for smaller-scale operations. As mining is an essential aspect of the country’s GDP, Peru has developed a favorable regulatory regime for its mining industry. Element79 Gold is poised to benefit from the pro-mining jurisdiction as it moves the Lucero asset toward production.
Ground work at the Lucero property is currently underway, where Element79 has engaged Ore Discovery LLC, a technical mining service provider, to work in conjunction with Element79’s operations team. The work includes above-ground and underground mapping, sampling, trenching, drill site targeting on both better-known and unexplored vein systems, for exploration and de-risked resource development on the path toward ore extraction and near-term cash flow generation.
Latest underground mapping and channel sampling efforts on the Lucero property have revealed additional insights, documenting an expansive network spanning 8.9 kilometers of workings, with 85 percent now meticulously mapped and sampled. A total of 19 adits have been mapped, with 10 additional adits remaining for underground mapping. Intersected mineralization conforms to the intermediate sulfidation epithermal style, characterized by gold-silver veins with associated lead and zinc sulphides.
In June 2023, Element79 Gold further strengthened its portfolio in Peru with the acquisition of the 1,200-hectare Lucero del Sur 28, located strategically just east of the high-grade Lucero gold-silver project. Lucero del Sur 28 is a coveted area covering the Roxana vein, a vein dominated by white to hyaline quartz and altered rock clasts, with lesser amounts of limonite patinas, hematite, pyrite and jarosite.
In North America, the company holds a portfolio of mining properties in Nevada, one of which is the Maverick Springs gold and silver project. With an inferred 3.71 million ounces of gold equivalent, the project is located in one of the world’s richest gold mining districts and is located only 30 kilometers away from the Kinross (NYSE:KGC) Bald Mountain Mine. It is currently under an option agreement to sell wherein the company stands to generate CAD $4.4 million cash and AUD $800,000 in shares of Green Power Minerals (soon to be known as Sun Silver Limited by July 2024.
A powerhouse management team leads Element79 Gold with a track record of experience and success. Antonio Maragakis, Former COO and now Director, has held director-level positions at miners with multi-billion dollar portfolios, including Barrick Gold Corporation and Koch Industries. In addition, Kim Kirkland, Chief Operating Officer, has led engineering roles in some of the world’s largest mining companies, such as Rio Tinto Group and Barrick Gold Corporation.
Shane Williams, strategic advisor, brings a history of significant value creation in early-stage and operating companies and currently heads West Red Lake Gold (TSXV:WRLG) as president and CEO. Combined, Element79 has the right experts to fully realize its assets' potential.Company Highlights
- Element79 Gold is an exploration and development mining company with a high-grade gold and silver flagship project with near-term cash flow potential.
- The company’s Lucero project in Peru has historical high-grade results and provides opportunities for both near-term revenue and future greenfield exploration.
- Lucero has historically produced 18,800 ounces of gold and 435,000 ounces of silver per year at 19 grams per ton gold equivalent.
- Peru is considered a safe jurisdiction for mining operations due to a pro-mining government that recognizes the industry’s economic contributions.
- Element79 Gold’s Maverick Springs gold and silver project in Nevada creates additional near term revenue generation potential as it is under contract for sale in May-June 2024.
- A powerhouse management team leads the company toward fully developing its asset portfolio.
Key Projects
Lucero Gold Project
The 10,805-hectare project in southern Peru presents near-term cash flow potential as it moves toward production. Lucero operated as a high-grade gold mine between 1989 and 2005 and remains partially unexplored. As a result, the asset is in a unique position to start generating revenue while also providing future growth opportunities with additional exploration.
Project Highlights:
- Encouraging Historic Results: Reports from 1998 to 2004 indicate production averaging roughly 18,800 ounces of gold and 435,000 ounces of silver per year, with grades of 14.0 g/t gold and 373 g/t silver. Additionally, the asset contains recoveries at the ore processing facility averaging 94.5 percent for gold and 85.5 percent for silver for near-term cash flow.
- Unique Geology: Lucero hosts 74 recognized epithermal veins, 14 of which have been partially exploited. The project is a low-sulphidation epithermal gold-silver deposit hosted within tertiary volcanics in the Central Andes Cordillera of southern Peru. The project also hosts unexplored high-sulphidation style mineralization, which has returned surface samples up to 33.6 g/t gold.
- Promising Resource Estimate: A third-party NI 43-101 report indicates grades up to 116.8 g/t gold equivalent, or 78.7 g/t gold and 2,856 g/t silver. Element79 Gold is moving towards production to capitalize on these resources.
Maverick Springs Gold Project
The Nevada-based Maverick Springs gold project covers 4,800 acres on top of a gold belt with deposits approximately five miles wide and 40 miles long. The project’s gold belt district has produced more gold than any other mining district in the United States.
Project Highlights:
- Prolific Resource Estimate: A 2021 constrained mineral resource statement estimates that the asset contains 124.4 million tonnes at 68.9 g/t gold equivalent, which indicates 278 million ounces of gold equivalent. This estimate demonstrates the high upside potential of the project.
- Existing Infrastructure: The Maverick Springs gold project is accessible year-round via a gravel road and contains a network of drill roads throughout its claims. The asset also has nearby electrical power that minimizes initial development costs.
Clover Gold Property
The Clover Property is located in the historic Midas Mining District in Nevada, which has been producing gold and silver since the early 1900s and is 16 kilometers west of Hecla Mining Company’s Midas Mine, the largest known gold-silver epithermal deposit along the Northern Nevada Rift. Mineralization at the property is classified as low-sulphidation, vein-hosted, epithermal gold mineralization similar to that found at the Midas deposit as it is found within a similar geologic setting. Gold and silver mineralization at the Midas Mine is hosted in several northwest-striking veins. Between 1998 and 2013, the main veins produced over 2 million ounces of gold.
A $6.7-million program is planned for the Clover Property focused on data compilation, construction of geologic and resource models, and a 10,000-meter drilling program followed by a mineral resource estimate and NI 43-101 compliant preliminary economic assessment.
Project Highlights
- Consists of 169 unpatented claims encompassing 3,063 acres.
- Located in the historic Midas Mining District, which has been producing gold and silver since the early 1900s, along the northeast trending Getchell Trend that bridges the northwestern ends of the Carlin and Battle Mountain Trends and contains Nevada Gold’s active Turquoise Ridge Mine, the third largest gold mine in the US with 537,000 ounces of gold production reported in 2020.
- Drilling by previous operators intersected mineralized and veined breccias and shear zones with significant intercepts including 9.7 meters grading 25.3 g/t gold, 7.6 meters of 7.9 g/t gold and 3 meters of 10 g/t gold.
- Work to date by Element79 found that the property has ubiquitous expressions of precious metals and pathfinder elements in rock chip, soil geochemistry and drill hole intercepts consistent with the Midas, Hollister and other classical epithermal systems.
West Whistler
The West Whistler Property is located in the Eureka Mining District, which hosts mid-Cretaceous, igneous-related, polymetallic carbonate replacement deposits that have subsequently been overprinted by Carlin-type gold-silver mineralization. The property is located along the southeastern end of the Battle Mountain Trend near several gold deposits including the Cortez Mine, the third largest gold mine in North America with 2021 gold production of 828,000 ounces.
Since its acquisition, Element79 has completed high-level data review and conceptual plans for target identification. The company has a $ 700,000 program planned for the West Whistler Property focused on field operations, surface sampling and structural analysis in order to develop drill targets
Project Highlights
- Consists of 103 unpatented claims encompassing 2,057 acres in the Eureka Mining District.
- Located within the Battle Mountain Trend in close proximity to several gold deposits including the Cortez Mine, the third largest gold mine in North America with 2021 gold production of 828,000 ounces.
- Targeting a deposit similar to that found at the Rain Deposit located 113 kilometers to the north where the Saddle Zone deposit hosts 1.15 million tons grading 0.57 oz/t gold for 782,000 ounces of gold.
- In this model, the gold is deposited above or near the Devils Gate-Webb Formation contact adjacent to northwest and northeast trending gold-bearing fault zones. At the West Whistler Property a 2-kilometer by 0.65-kilometer window of Devonian Devil’s Gate Limestone and Webb Formation is exposed in the southern portion of the claim block.
Management Team
James C. Tworek - Chief Executive Officer and Director
James Tworek has held director, senior management, analytical and operations roles in both public and private companies. A quick study and entrepreneurial to the bone, his 25-year career started in banking in 1998 and has since garnered a wealth of experience across diverse industries between commercial banking, mining, project finance, mezzanine debt, oil and gas, clean water/envirotech and hemp/legal cannabis industries. He has investing experience in real estate, private equity, private mining, startup generation, tech and agricultural ventures. A team leader driven by results, Tworek has built his career on successfully executing development and corporate growth targets, exceeding sales objectives, and being mindful of ensuring open communication, honesty and integrity with investors and stakeholders.
Tammy Gillis - Chief Financial Officer
Ms. Gillis is a CPA, CMA with over 20 years of experience in the public markets bringing comprehensive background in finance, reporting and regulatory requirements for manufacturing, bio-technology, technology and junior exploration industries. Ms. Gillis has been part of teams that have completed several financings, grant applications and acquisition transactions. Ms. Gillis started her career working at a corporate and securities law firm. Ms. Gillis previously served as Corporate Accountant for an international manufacturing company that had revenue in excess of $120 million and as Chief Financial Officer for a technology company with patented cathode materials used in lithium-ion batteries that successfully built a pilot plant with the assistance of over $4 million in government grants. Ms. Gillis has served as an officer for several TSX-V and CSE-listed issuers.
Antonios (Tony) Maragakis - Director
Antonios Maragakis completed his PhD at the University of Delft, MSc at the University of Bath, his B.Sc and B.A. at the University of Nevada, and executive training at the London Business School. He brings with him more than 15 years of experience leading some of the largest mining megaprojects in the last decade. Maragakis holds a distinguished resume, including management and director-level positions overseeing multibillion-dollar project portfolios internationally at organizations, such as:
- Barrick Gold (NYSE Listed), where he led project controls in North America across a portfolio of more than 70 projects worth over $2.3 billion.
- Skeena Resources (TSX Listed), where he worked closely with executive leadership to develop the Eskay Creek Project and corporate processes and management systems.
- Freeport-McMoRan (NYSE Listed), where he helped develop the $3-billion Indonesian Copper Smelter Project which includes a two-million-ton/annum smelter and precious metal recovery plant.
- Eldorado Gold (TSX, NYSE Listed), where he was project director for the over $1-billion Skouries Project, as well as led the operational turnaround of the Kassandra Mines.
- Koch Industries (the largest privately held company in the US), at its subsidiary, Koch Ag. & Energy Solutions, where he helped execute the Enid Expansion Megaproject, at the time the largest capital project ever undertaken by the entire Koch Industries conglomerate.
- Mochica Resources and Calipuy Resources (private Peruvian gold mines) where he oversaw the development of various project portfolios.
Kim Kirkland - Chief Operating Officer
Kim Kirkland’s track record spans senior executive and lead engineering roles at some of the world's largest mining companies. Key highlights of Kirkland's work history include:
- Barrick Gold Corporation - Involved during the early growth and innovation years at the Goldstrike Complex, including the development and maintenance of the open-pit mineral reserve model for the Betze-Post Mine
- Rio Tinto Group - La Granja Copper Project in northern Peru, held a senior management position at the Benga Mine
- MMG Ltd. - regional manager at the Las Bambas Copper Mine in Peru
- Amec Foster Wheeler Plc - Marcobre SAC's Mina Justa Mine Project
- McEwen Mining - Responsible for the restructuring of the El Gallo Silver Project (later renamed to Fenix) in Sinaloa, Mexico, as the director of project development.
Neil Pettigrew - Director
Neil Pettigrew is a professional geologist in good standing, registered in Ontario, with over 20 years of experience in the mineral exploration industry. He received his Honors B.Sc. from the University of New Brunswick and his M.Sc. from the University of Ottawa. Pettigrew has been employed as a senior precambrian geoscientist with the Ontario Geological Survey and has worked for several junior and major companies in gold and Cu-Ni-PGE exploration. He has held officer and director positions at several TSX and TSXV listed junior companies and currently sits as vice-president of exploration and director of Palladium One Mining Inc.
George Tumur - Director
GeorgeTumur brings a wealth of experience and a profound understanding of mining, investment funding and government relations. As former ambassador to Singapore, Tumur's remarkable career has been characterized by visionary leadership, strategic acumen and an exceptional ability to navigate complex challenges.
Tumur has held several executive-level positions at minerals exploration and mining organizations, including Hunnu Coal (ASX:HUN), Energy Resources (later, MMC, HKEX: 0975) and other public and private entities. Most notably, in these roles, Tumur has had a transformative impact on leadership, unlocking significant coal resources, estimated at 1 billion tons of measured and indicated coal across three projects at Hunnu Coal, and elevating the company's valuation nine-fold in just 18 months following IPO; as well as commencing a significant production of a private project within six months from a head start, introducing an international contract mining experience into local mining industry, leading to a successful IPO.
Prior to his recent role as a senior advisor at Gateway Partners, a private equity investment fund in Singapore, Tumur was appointed as ambassador of Mongolia to Singapore, Philippines and Brunei Darussalam, and applied his diplomatic skills to strengthen bilateral and multilateral relations, boasting trade and tourism between host countries and Mongolia.
Tumur's academic background includes a master of science in mining and earth systems engineering from the Colorado School of Mines and a bachelor of science in metallurgy and materials engineering from the same institution.
Zara Kanji - Director
Zara Kanji is a founder of Zara Kanji & Associates (established in 2004). Kanji is experienced in financial reporting compliance for junior listed resource companies, personal and corporate taxation, general accounting, financial reporting and value-added operational consulting services for individuals, and private and public companies. Prior to starting her accounting practice, Kanji served as a controller for a marketing company, as an accountant in public practice for a CA firm, a CGA firm and as an analyst for a pension fund. In addition to providing accounting and financial compliance services to private and public entities, Kanji has served as director and officer for several listed issuers.
Shane Williams – Strategic Advisor
Shane Williams carries a history of significant value creation in both early-stage and operating companies, which includes senior executive and management roles overseeing and delivering world-class, multibillion-dollar projects at highly prominent companies, including: chief operation officer at Skeena Resources (NYSE Listed), Eskay Creek Project; former senior vice-president at Eldorado Gold (NYSE Listed), $2-billion global project portfolio; former general manager of expansion projects at Rio Tinto (NYSE Listed), $2.5-billion CAPEX; and former vice-president of projects at Kaunis Iron AB, $800-million flagship Kaunisvarra Iron Ore Project.
Element79 Elevating Community Relations: Discussing Pending Formalization with Artisanal Miners and Reporting on Social Initiatives Leading to Restarting Production at Lucero
VANCOUVER, BC T he N ewswire April 25, 2024 Element79 Gold Corp. (CSE: ELEM) (OTC: ELMGF) (FSE: 7YS) ("Element79" the "Company ") provides an update on recent social affairs development and ongoing initiatives with the Chachas community at its Lucero project.
Fostering Collaboration with Artisanal Miners
As part of Element79's ongoing efforts and community engagement, the Company's community relations team recently organized a coordination meeting with artisanal miners from Lomas Doradas during the month of April. The meeting aimed to foster collaborative relationships between the groups, seeking mutual support as the Company endeavours to use surface land to conduct exploration work. Moreover, the Company also sought exclusive agreements with artisanal miners, ensuring a unified approach to mineral extraction and resulting sale of ore.
With Element79's dedication to fostering productive relationships with all stakeholders, the Company has provided drafts of contracts for the potential of both a community approval of 10-year surface access rights for Element79 to access the Lucero mine site with exploration permission for the whole concession, as well as, in reciprocal fashion, to grant the approval of the local miners to work on the mine site in defined locations over the next 10 years; among other terms, Lomas Doradas will also provide its mined product to Element79 for subsequent resale to market. Element79 intends to use its institutional and industry contacts to source optimal market pricing for Lomas Doradas' ore while providing a revenue stream for both parties.
A pivotal meeting is scheduled in Chachas on April 28 th to further solidify collaboration between the Company and Lomas Doradas, where the community will vote on these initiatives in order to formalize the relationship between the two parties. Further updates on, and details of this key initiative will follow, pending feedback and results of the April 28 meeting.
Community Assistance in Times of Need
Earlier in March, a major landslide left the Chachas community isolated from its neighbouring annex, Nahuira. Element79's team on the ground swiftly responded to the community's need for assistance, providing crucial support in transferring community members stranded on the other side of the landslide while it was being cleared from the roads.
Cultural Integration and Traditional Ceremony
Element79's community relation team recently participated in a traditional Water Ceremony alongside local authorities and community leaders. This customary Chachas ceremony, involving offerings to the water, highlights the deep-rooted cultural traditions of the Chachas community. The Company was honored to be involved in such a rich and culturally-steeped ritual which further showcases its commitment to meaningful community engagement and ongoing integration.
Sustained Engagement in Social Awareness
Site visits of the Chachas community and neighbouring annexes have continued since the beginning of the year, bolstering social awareness while garnering support for ongoing and future exploration activities. Element79's team has engaged in internal consultations with annex leaders, receiving encouraging support for its initiatives. In alignment with sustainable development objectives, the Company advocates for a progressive approach, prioritizing exploration as a precursor to exploitation permits, aligning with the community's interests.
Cultivating Community Bond Through Education
Finally, as part of its steadfast dedication to the long-term prosperity of the community, notably through educational empowerment, Element79 along with its engaged NGO, Unidos por el Medioambiente (UMA) was recently invited to conduct a workshop on environment, economy and society as part of an initiative with the Education Institute of the Chachas community. The workshop was a pivotal platform for fostering discussions and sharing invaluable insights on the environment, economy, and society. The event's active engagement from community members and stakeholders underscored Element79's commitment to promoting knowledge-sharing and sustainable development within the Chachas community and beyond.
Image Group 1 – Images of the in-class sessions hosted by UMA, a Peruvian NGO, and Element79 Gold Corp, sharing educational themes on health and wellness, the environment and the economy
Click Image To View Full Size
About Element79 Gold Corp.
Element79 Gold is a mining company focused on gold and silver committed to maximizing shareholder value through responsible mining practices and sustainable development of its projects. Element79 Gold's focus is on devel oping its past-producing, high-grade gold and silver mine, the Lucero project located in Arequipa, Peru, with the intent to restart production in 2024.
The Company also holds a portfolio of 5 properties along the Battle Mountain trend in Nevada, with the Clover and West Whistler projects believed to have significant potential for near-term resource development. Three properties in the Battle Mountain Portfolio are under contract for sale to Valdo Minerals Ltd., with an anticipated closing date in the first half of 2024. The Company has also signed an Option Agreement to sell the Maverick Springs project, an advanced-stage exploratory property with an Inferred Resource of 3.71MMoz AuEq (1.37MMoz Au and 175MMoz Ag) (see 43-101 technical report titled: Amended Technical Report on the Maverick Springs Project, Nevada, USA, by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo., dated October 7, 2022, available on SEDAR) and anticipates completing this sale on or before July 21, 2024.
In British Columbia, Element79 Gold has executed a Letter of Intent and funded a drilling program to acquire a private company that holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10 mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
The Company has an option to acquire a 100% interest in the Dale Property, 90 unpatented mining claims located approximately 100 km southwest of Timmins, Ontario, and has recently announced that it has transferred this project to its wholly owned subsidiary, Synergy Metals Corp, and is advancing through the Plan of Arrangement spin-out process.
For more information about the Company, please visit www.element79.gold
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: jt@element79gold.com
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1.403.850.8050
E-mail: investors@element79.gold
Cautionary Note Regarding Forward Looking Statements
This press contains "forward‐looking information" and "forward-looking statements" under applicable securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made considering management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements include, but are not limited to, statements with respect to: the Company's business strategy; future planning processes; exploration activities; the timing and result of exploration activities; capital projects and exploration activities and the possible results thereof; acquisition opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19; risks related to the integration of acquisitions; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the Company's other public disclosure documents, available on www.sedarplus.ca . Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp. Confirms Oversubscribed Final Tranche Of Equity Unit Offering Raising Over $867,000
(TheNewswire)
| |||||||||
| | | |||||||
Vancouver, BC April 18, 2024 Element79 Gold Corp. (CSE:ELEM)(OTC:ELMGF)(FSE:7YS0) ("Element79" or "the Company") The Company is pleased to announce that it has closed its final round of capital raising efforts, announcing that that the previously initiated non-brokered Private Placement of Equity Units was met with overwhelming investor interest, resulting in an oversubscription.
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp and Condor Resources Inc. Reschedule March 2024 Lucero Payment
(TheNewswire)
| |||||||||
| | | |||||||
Vancouver, B.C., April 8, 2024 TheNewswire - Element79 Gold Corp - ("Element79" or the "Company") (CSE: ELEM, OTC: ELMGF, FSE: 7YS0) announces that it has reached agreement with Condor Resources Inc. (TSXV:CN, "Condor") to revise the payment terms on a payment due March 31, 2024 of US$375,000 with respect to the Lucero project. Element79 are the owner of Calipuy Resources Inc., ("Calipuy"), and assumed Calipuy's obligations to acquire the shares of Condor's subsidiary, Minas Lucero del Sur S.A.C., the owner of the Lucero project.
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp to Present at the Emerging Growth Conference Today
(TheNewswire)
| |||||||||
| | | |||||||
Vancouver, BC TheNewswire - April 3, 2024 - "Element79 Gold Corp" ( OTC:ELMGF ) ( CSE:ELEM ) ( FSE:7YS0, a mining company focused on the exploration for and production of gold and silver (the "Company") is pleased to announce that it has been invited to present at the Emerging Growth Conference on April 3, 2024
News Provided by TheNewsWire via QuoteMedia
Element79 Gold Corp Announces Closing of Second Tranche of Placement
(TheNewswire)
| |||||||||
| | | |||||||
Vancouver, British Columbia TheNewswire - March 28, 2024 - Element79 Gold Corp (the "Company") (CSE:ELEM) (OTC:ELMGF) (FSE:7YS0) Further to the Corporation's previous Financings announcement, Element79 is pleased to announce the successful completion of its second tranche of its placement for an addition $300,075 of funding through its Non-Brokered Private placement. This second tranche of closing will see the Company issue a total of 1,304,674 Units for this tranche. The second tranche of the placement was largely subscribed to by a strategic investor who recognizes the long-term value and potential of the Company. This investor brings not only capital but also invaluable expertise and connections within the sector which will accelerate the Company's corporate development.
News Provided by TheNewsWire via QuoteMedia
March 2024 Quarterly Report
HIGHLIGHTS
Mandilla Gold Project – near Kalgoorlie, WA
- Assays results reported for the final three holes of the six-hole/1,832 metre Theia diamond drilling (DD) program completed during November 1.
- The Theia DD program was targeting extensional and in-fill mineralisation at the Theia deposit.
- Planning underway for further drilling programs and commencement of Mandilla Pre-Feasibility Study.
Feysville Gold Project – near Kalgoorlie, WA
- Assay results reported for the three-hole/495 metre DD program completed at the Kamperman prospect during the previous Quarter 2.
- A total of 4,924 metres of drilling completed during the Quarter, inclusive of:
- oA 67-hole/2,248 metre regional air-core (AC) Program on prospecting licences P26/4351-4353;
- oA three-hole/217 metre slimline reverse circulation (RC) program at the Kamperman Prospect; and
- oA 19-hole/2,459 metre RC program at the Kamperman Prospect.
- Assay results from the AC Program and slimline RC Program reported during the Quarter 3.
- Assay results from the Kamperman RC Program reported during and subsequent to the end of the Quarter 4, 5.
Corporate
- Cash of approximately $0.62 million as at 31 March 2024.
- Mr Mark Connelly elected Chair following the resignation of Mr Leigh Warnick as Director.
- Share placement of 140 million shares at $0.05 per share to raise $7 million (before costs) announced on 28 March 2024 (Placement), with funds received after Quarter’s end.
- Directors of the Company subscribed for an additional 2.1 million shares at $0.05 per share, subject to the approval of shareholders at a meeting to be held on 20 May 2024 (Director Participation Shares).
- Astral is now well-funded to pursue its various exploration programs and commence the Mandilla Pre-Feasibility Study.
Figure 1 – Project Location Map
MANDILLA GOLD PROJECT
The Mandilla Gold Project (Mandilla) is situated in the northern Widgiemooltha greenstone belt, approximately 70 kilometres south of the significant mining centre of Kalgoorlie, Western Australia (Figure 1).
Mandilla is covered by existing Mining Leases which are not subject to any third-party royalties other than the standard WA Government gold royalty.
The Mandilla Gold Project includes the Theia, Iris, Eos and Hestia deposits.
Gold mineralisation at Theia and Iris is comprised of structurally controlled quartz vein arrays and hydrothermal alteration close to the western margin of the Emu Rocks Granite and locally in contact with sediments of the Spargoville Group.
Click here for the full ASX Release
This article includes content from Astral Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
NOVAGOLD Announces Date of its 2024 Virtual Annual General Meeting of Shareholders
- NOVAGOLD's Annual General Meeting of Shareholders (the "Meeting") will be held virtually on May 16, 2024 at 1:00 p.m. PST
- Shareholders may vote on matters before the Meeting by proxy, join the virtual Meeting and vote, and submit questions either during the webcast or in advance by email
- Following the Meeting, Chairman Dr. Thomas S. Kaplan and President and CEO Greg Lang will host a virtual presentation centered on the Donlin Gold project, a premier Tier 1 gold development project 1
NOVAGOLD RESOURCES INC. ("NOVAGOLD" or the "Company") (NYSE American, TSX: NG) will hold the Company's 2024 Annual General Meeting of Shareholders virtually on May 16, 2024 at 1:00 p.m. PST (4:00 p.m. EST). On this occasion, Shareholders will set the number of Directors at ten, elect Directors for the ensuing year, appoint external auditors, and cast a non-binding advisory vote on the Company's executive compensation program. Following the official Meeting, Chairman Dr. Thomas S. Kaplan and President and CEO Greg Lang will provide an overview of NOVAGOLD's 2023 achievements and provide their outlook for the remainder of 2024.
NOVAGOLD EXPRESSES GRATITUDE TO RETIRING DIRECTOR ANTHONY WALSH
Anthony Walsh has chosen to retire after many years of dedicated service as the Company's Independent Lead Director and Chair of the Audit Committee.
"On behalf of the Board of Directors of NOVAGOLD, I wish to express our most sincere appreciation for Tony's dedicated and thoughtful guidance over the past 12 years with our company," said Dr. Thomas S. Kaplan, NOVAGOLD's Chairman. "We are all immensely grateful for his leadership, particularly in the key roles of independent Lead Director and Chair of the Audit Committee, where he helped shape the company's signature reputation for transparency and best practices. It has been nothing short of a pleasure to work with Tony during his tenure and we all wish our friend great success in his future endeavors."
NOVAGOLD VIRTUAL MEETING AND SHAREHOLDER PARTICIPATION
NOVAGOLD's 2024 Annual General Meeting of Shareholders will be held virtually. Shareholders may cast their vote in advance by proxy and participate from any geographic location with internet connectivity. We believe this constitutes an important step to enhance shareholder accessibility to our annual Meeting and help reduce the carbon footprint of our activities. Please refer to NOVAGOLD's Management Information Circular dated March 22, 2024, for detailed instructions on voting.
Shareholders may view a live webcast of the Meeting and registered shareholders as well as duly appointed proxyholders may submit questions digitally during the Meeting at: www.virtualshareholdermeeting.com/NG2024 .
Questions may also be submitted to management and to the Board of Directors prior to the Meeting via email at info@novagold.com . Shareholders are encouraged to log in to the Meeting 15 minutes prior to the scheduled start time. Please make sure to have the 16-digit control number from your voting materials available when logging in to the Meeting.
Shareholders may contact Kingsdale Advisors, the Company's strategic advisor, by telephone at 1-866-228-8818 (toll-free in North America) or 1-416-623-2514 (text and call enabled outside North America), or by email at contactus@kingsdaleadvisors.com . To obtain information about voting your NOVAGOLD Common Shares, please visit www.novagoldagm.com .
NOVAGOLD's Management Information Circular dated March 22, 2024 and Annual Report to Accompany the Management Information Circular are available on the Company's website, www.novagold.com/investors/mic/ , on SEDAR+ at www.sedarplus.ca , and on EDGAR at www.sec.gov .
NOVAGOLD Contacts:
Mélanie Hennessey
Vice President, Corporate Communications
1-604-669-6227 or 1-866-669-6227
________________________________
1 NOVAGOLD defines a Tier One gold development project as one with a projected production life of at least 10 years, annual projected production of at least 500,000 ounces of gold, and average projected cash costs over the production life that are in the lower half of the industry cost curve.
News Provided by GlobeNewswire via QuoteMedia
AGNICO EAGLE REPORTS FIRST QUARTER 2024 RESULTS - STRONG QUARTERLY GOLD PRODUCTION AND COST PERFORMANCE DRIVE RECORD QUARTERLY FREE CASH FLOW; 2023 SUSTAINABILITY REPORT RELEASED
Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise noted)
Agnico Eagle Mines Limited (NYSE:AEM) (TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the first quarter of 2024.
"Building on a very strong close to 2023, we are reporting our second consecutive quarter of record operating margins and record free cash flow, on the back of solid operational and cost performance. With this strong start to the year, we are well positioned to achieve our production and cost guidance for 2024," said Ammar Al-Joundi , Agnico Eagle's President and Chief Executive Officer. "During the quarter, we continued to advance our key value drivers and project pipeline, and our exploration program yielded significant results at Hope Bay, Canadian Malartic and Detour Lake. We strengthened our balance sheet in the quarter and our focus remains on capital discipline and cost control, while investing in our projects pipeline and providing returns to shareholders," added Mr. Al-Joundi.
First quarter 2024 highlights:
- Strong quarterly gold production – Payable gold production 1 in the first quarter of 2024 was 878,652 ounces at production costs per ounce of $892 , total cash costs per ounce 2 of $901 and all-in sustaining costs ("AISC") per ounce 3 of $1,190 . Gold production in the first quarter of 2024 was led by record quarterly production at Canadian Malartic and strong production from Macassa and the Company's Nunavut operations
- Record quarterly cash provided by operating activities and free cash flow – The Company reported quarterly net income of $347.2 million or $0.70 per share and adjusted net income 4 of $377.5 million or $0.76 per share for the first quarter of 2024. Cash provided by operating activities was $1.57 per share ( $1.56 per share before changes in non-cash working capital balances 5 ) and free cash flow 5 was $0.79 per share ( $0.78 per share before changes in non-cash working capital balances 5 )
- Strengthening investment grade balance sheet – In the first quarter of 2024, the Company increased its cash position by $186 million and reduced net debt. In addition, in March 2024 , Moody's upgraded the Company's long-term issuer rating to Baa1 from Baa2
- 2024 gold production, cost and capital expenditure guidance reiterated – Expected payable gold production remains unchanged at approximately 3.35 to 3.55 million ounces in 2024, with total cash costs per ounce and AISC per ounce in 2024 unchanged at $875 to $925 and $1,200 to $1,250 , respectively. Total capital expenditures (excluding capitalized exploration) for 2024 are still estimated to be between $1.6 billion to $1.7 billion
- Update on key value drivers and pipeline projects
- Construction of Odyssey mine at the Canadian Malartic complex progressing well – In the first quarter of 2024, ramp development continued to exceed target, reaching the first production level of East Gouldie in February 2024 and a depth of 765 metres as at March 31, 2024 . Shaft sinking improved during the quarter, with an average sinking rate of 2.4 metres per day (including pre-sinking). The temporary loading pocket, previously planned at level 102, will now be built at Level 64, which is expected to provide hoisting capacity by mid-2025, six months earlier than previously planned and will provide added development and production flexibility. Surface construction is progressing as planned, with a focus on the main hoist building, phase two of the paste plant and the operational complex
- Positive exploration results at Odyssey mine – Exploration drilling continues to return positive results to the east of the East Gouldie mineral resources, including 4.5 g/t gold over 30.0 metres at 1,162 metres depth and 1,060 metres east of current mineral reserves; and 3.1 g/t gold over 32.8 metres at 1,556 metres depth and 420 metres east of the lower portion of the East Gouldie mineral reserves
- Detour Lake – The mill delivered a solid performance with a throughput rate of 71,451 tonnes per day ("tpd"), which was the highest for a first quarter period, demonstrating continued mill improvement year-over-year. The Company continues to evaluate underground mining scenarios at Detour Lake and expects to provide an update on the project, mill optimization efforts and ongoing exploration results in the second quarter of 2024. Exploration during the first quarter included infill drilling in the shallow portion of the West Pit Extension, with highlight intercepts of 3.9 g/t gold over 25.4 metres at 369 metres depth and 5.4 g/t gold over 16.6 metres at 307 metres depth, both at underground depths near the proposed exploration ramp
- Hope Bay – Exploration drilling during the first quarter totalled 30,600 metres and returned strong results in the Patch 7 area of the Madrid deposit, including 20.8 g/t gold over 17.7 metres at 461 metres depth and 14.1 g/t gold over 16.4 metres at 480 metres depth in a cluster of high-grade intersections approximately 200 metres north of Patch 7 mineral resources
- 2023 Sustainability Report published – The Company continues to demonstrate its commitment to ESG performance. In 2023, the Company recorded its best safety performance in its 66-year history and maintained or improved performance across other key ESG indicators, including efficient management of water resources and increased local employment. In addition, efforts continued in 2023 to maintain a climate resilient business and meet our interim reduction target of 30% of absolute Scope 1 and 2 emissions by 2030
- Continued focus on shareholder returns – In the first quarter of 2024, a quarterly dividend of $0.40 per share has been declared and the Company repurchased 375,000 common shares for $19.9 million through its normal course issuer bid ("NCIB")
__________ | |
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 in this news release, unless otherwise specified, is reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation of total cash costs to production costs on both a by-product and a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
3 | AISC per ounce is a non-GAAP ratio that is not a standardized financial measure under the IFRS and in this news release, unless otherwise specified, is reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to production costs and for all-in sustaining costs on both a by-product and co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
4 | Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Reconciliation of Non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
5 | Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Reconciliation of Non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
First Quarter 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Friday, April 26, 2024 at 8:30 AM (E.D.T.) to discuss the Company's 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 URL Entry:
To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/3Rvps0 4 to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator (see "Via Telephone" details below).
Via Telephone:
For those preferring to listen by telephone, please dial 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.
Replay Archive:
Please dial 416.764.8677 or toll-free 1.888.390.0541, access code 505445#. The conference call replay will expire on May 26, 2024 .
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Annual Meeting
The Company will host its Annual and Special Meeting of Shareholders (the "AGM") on Friday, April 26, 2024 at 11:00 AM (E.D.T). During the AGM, management will provide an overview of the Company's activities.
The AGM will be held in person at the Arcadian Court, 401 Bay Street, Simpson Tower, 8th Floor, Toronto, Ontario , M5H 2Y4 and online at: https://meetnow.global/MFJPVMP .
For details explaining how to attend, communicate and vote virtually at the AGM please see the Company's Management Information Circular dated March 22, 2024 , filed under the Company's profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov . Shareholders who have questions about voting their shares or attending the AGM may contact Investor Relations by phone at 416.947.1212, by toll-free phone at 1.888.822.6714 or by email at i nvestor.relations@agnicoeagle.com or may contact the Company's strategic shareholder advisor and proxy solicitation agent, Laurel Hill Advisory Group, by phone at 1.877.452.7184 (toll free in North America ), at 1.416.304.0211 (for collect calls outside of North America ) or by e-mail at assistance@laurelhill.com .
First Quarter 2024 Production and Costs
Production and Cost Results Summary* | ||||
Three Months Ended | ||||
2024 | 2023 | |||
Gold production (ounces) | 878,652 | 812,813 | ||
Gold sales (ounces) | 879,063 | 787,558 | ||
Production costs per ounce | $ 892 | $ 804 | ||
Total cash costs per ounce | $ 901 | $ 832 | ||
AISC per ounce | $ 1,190 | $ 1,125 | ||
* Reflects Agnico Eagle's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter. |
Gold Production
Gold production increased in the first quarter of 2024 when compared to the prior-year period primarily due to additional production from the acquisition of the remaining 50% of the Canadian Malartic complex following the closing of the acquisition of the Canadian assets of Yamana Gold Inc. (the "Yamana Transaction") and higher production from the Meadowbank complex, partially offset by lower production at the Fosterville mine.
Production Costs per Ounce
Production costs per ounce increased in the first quarter of 2024 when compared to the prior-year period primarily due to higher production costs at most mine sites resulting from inflation, combined with the impact of the timing of inventory sales and lower production at the LaRonde complex, a lower build-up of ore stockpiles, lower gold production at the Detour Lake mine and the timing of inventory sales at the Meliadine mine, partially offset by higher gold production and lower production costs at the Meadowbank complex.
Total Cash Costs per Ounce
Total cash costs per ounce increased in the first quarter of 2024 when compared to the prior-year period primarily due to higher operating costs at most mine sites resulting from inflation, higher royalties arising from higher gold prices and gold production, and the impact of lower gold grades at the LaRonde complex, the Detour Lake mine and the Fosterville mine due to mining sequence, partially offset by higher gold production and lower production costs at the Meadowbank complex.
AISC per Ounce
AISC per ounce increased in the first quarter of 2024 when compared to the prior-year period due to higher total cash costs per ounce and higher sustaining capital expenditures during the period associated with the acquisition of the remaining 50% of the Canadian Malartic complex, partially offset by higher production.
AISC per ounce in the first quarter of 2024 was lower than expected primarily as a result of the deferral of certain sustaining capital expenditures at the Detour Lake mine to later in 2024. AISC per ounce is expected to be higher in the remainder 2024 as the Company still expects company-wide AISC per ounce for the full year 2024 to be in the range of $1,200 to $1,250 per ounce.
First Quarter 2024 Financial Results
Financial Results Summary | ||||
Three Months Ended | ||||
2024 | 2023 | |||
Realized gold price ($/ounce) 6 | $ 2,062 | $ 1,892 | ||
Net income ($ millions) 7 | $ 347.2 | $ 1,816.9 | ||
Adjusted net income ($ millions) | $ 377.5 | $ 271.3 | ||
EBITDA ($ millions) 8 | $ 882.5 | $ 2,272.9 | ||
Adjusted EBITDA ($ millions) 8 | $ 929.3 | $ 740.4 | ||
Cash provided by operating activities ($ millions) | $ 783.2 | $ 649.6 | ||
Cash provided by operating activities before changes in non-cash working capital | $ 777.1 | $ 608.8 | ||
Capital expenditures 9 | $ 372.0 | $ 341.7 | ||
Free cash flow ($ millions) | $ 395.6 | $ 264.7 | ||
Free cash flow before changes in non-cash working capital balances ($ millions) | $ 389.5 | $ 223.9 | ||
Net income per share (basic) | $ 0.70 | $ 3.87 | ||
Adjusted net income per share (basic) | $ 0.76 | $ 0.58 | ||
Cash provided by operating activities per share (basic) | $ 1.57 | $ 1.39 | ||
Cash provided by operating activities before changes in non-cash working capital | $ 1.56 | $ 1.30 | ||
Free cash flow per share (basic) | $ 0.79 | $ 0.56 | ||
Free cash flow before changes in non-cash working capital balances per share (basic) | $ 0.78 | $ 0.48 | ||
__________ | |
6 | Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold. |
7 | For the first quarter of 2023, includes a $1.5 billion revaluation gain on the 50% interest the Company owned in the Canadian Malartic complex prior to the Yamana Transaction on March 31, 2023. |
8 | "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Reconciliation of Non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
9 | Includes capitalized exploration |
Net Income
In the first quarter of 2024, net income was $347.2 million ( $0.70 per share). This result includes the following items (net of tax): derivative losses on financial instruments of $29 .2 million ( $0.05 per share), net asset disposal losses of $2 .6 million ( $0.01 per share), foreign exchange gains of $4 .5 million ( $0.01 per share), and foreign currency translation losses on deferred tax liabilities and various other adjustments totaling $3 .0 million ( $0.01 per share).
Excluding the above items results in adjusted net income of $377.5 million or $0.76 per share for the first quarter of 2024. Included in the first quarter of 2024 net income, and not adjusted above, is a non-cash stock option expense of $4.2 million ( $0.01 per share).
Net income of $347.2 million in the first quarter of 2024 decreased when compared to net income of $1,816.9 million in the prior-year period primarily due to the recognition of a $1,543.4 million remeasurement gain on the 50% of the Canadian Malartic complex that the Company owned prior to the Yamana Transaction in the prior-year period, partially offset by higher revenues from higher gold sales and higher realized gold prices in the current period.
Adjusted EBITDA
Adjusted EBITDA increased in the first quarter of 2024 when compared to the prior-year period primarily due to record operating margins 10 from higher gold sales and higher realized gold prices, partially offset by higher production costs.
Cash Provided by Operating Activities
Cash provided by operating activities and cash provided by operating activities before changes in non-cash working capital balances both increased in the first quarter of 2024 when compared to the prior-year period primarily due to higher revenues from higher gold sales and higher realized gold prices, partially offset by higher production costs.
Free Cash Flow Before Changes in Non-Cash Working Capital Balances
Free cash flow before changes in non-cash working capital balances was a record in the first quarter of 2024 and increased when compared to the prior-year period primarily due to the reasons described above in respect of cash provided by operating activities, partially offset by higher capital expenditures.
Capital Expenditures
The capital expenditures in the first quarter of 2024 were lower than forecast primarily due to the deferral of certain sustaining capital expenditures at Detour Lake mine to later in 2024. Total expected capital expenditures (including capitalized exploration) remain in line with guidance for the full year 2024.
The following table sets out a summary of capital expenditures (including sustaining capital expenditures 11 and development capital expenditures 11 ) and capitalized exploration in the first quarter of 2024.
__________ | |
10 | Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to net income see "Summary of Operations Key Performance Indicators" and "Note Regarding Certain Measures of Performance", respectively, below. |
11 | Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial measures under IFRS. For a discussion of the composition and usefulness of these non-GAAP measures and a reconciliation to additions to property, plant and mine development per the consolidated statements of cash flows, see "Reconciliation of Non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
Summary of Capital Expenditures | |||
($ thousands) | |||
Capital Expenditures* | Capitalized Exploration | ||
Three Months Ended | Three Months Ended | ||
Mar 31, 2024 | Mar 31, 2024 | ||
Sustaining Capital Expenditures | |||
LaRonde complex | $ 22,924 | $ 319 | |
Canadian Malartic complex | 27,045 | — | |
Goldex complex | 12,053 | 738 | |
Detour Lake mine | 49,638 | — | |
Macassa mine | 10,131 | 400 | |
Meliadine mine | 17,865 | 1,337 | |
Meadowbank complex | 19,942 | — | |
Fosterville mine | 5,483 | — | |
Kittila mine | 16,064 | 450 | |
Pinos Altos mine | 4,989 | 303 | |
La India mine | 22 | — | |
Other | 329 | 575 | |
Total Sustaining Capital Expenditures | $ 186,485 | $ 4,122 | |
Development Capital Expenditures | |||
LaRonde complex | $ 24,089 | $ — | |
Canadian Malartic complex | 36,005 | 1,318 | |
Goldex complex | 4,131 | — | |
Detour Lake mine | 37,759 | 7,552 | |
Macassa mine | 12,146 | 8,318 | |
Meliadine mine | 18,245 | 4,086 | |
Meadowbank complex | (27) | — | |
Fosterville mine | 9,428 | 3,624 | |
Kittila mine | 908 | 2,131 | |
Pinos Altos mine | 646 | 4 | |
San Nicolás project | 5,371 | — | |
Other | 5,677 | — | |
Total Development Capital Expenditures | $ 154,378 | $ 27,033 | |
Total Capital Expenditures | $ 340,863 | $ 31,155 |
* Excludes capitalized exploration |
2024 Guidance Reiterated
The Company is well positioned to achieve its 2024 gold production guidance of approximately 3.35 to 3.55 million ounces, its 2024 total cash costs per ounce guidance of $875 to $925 and its 2024 AISC per ounce guidance of $1,200 to $1,250 .
Total expected capital expenditures (excluding capitalized exploration) for 2024 are still estimated to be between $1.6 billion to $1.7 billion .
Strong Cash Flow Generation Enhances Investment Grade Balance Sheet Alongside Continued Commitment to Shareholder Returns
As at March 31, 2024 , the Company's long-term debt was $1,841.0 million , consistent with the prior quarter. No amounts were outstanding under the Company's unsecured revolving bank credit facility as at March 31, 2024.
Cash and cash equivalents increased by $186.0 million when compared to the prior quarter primarily due to higher cash provided by operating activities as a result of higher revenues from higher gold sales and higher realized gold prices, and lower capital expenditures.
The following table sets out the calculation of net debt 12 , which decreased by $188.1 million when compared to the prior quarter primarily as a result of higher cash and cash equivalents.
Net Debt Summary | ||||
($ millions) | ||||
As at | As at | |||
Mar 31, 2024 | Dec 31, 2023 | |||
Current portion of long-term debt | $ 100.0 | $ 100.0 | ||
Non-current portion of long-term debt | 1,741.0 | 1,743.1 | ||
Long-term debt | $ 1,841.0 | $ 1,843.1 | ||
Less: cash and cash equivalents | (524.6) | (338.6) | ||
Net debt | $ 1,316.4 | $ 1,504.5 | ||
In order to maintain financial flexibility, and consistent with past practice, the Company intends to file a new base shelf prospectus in the second quarter of 2024. The Company has no present intention to offer securities pursuant to the new base shelf prospectus. The notice set out in this paragraph does not constitute an offer of any securities for sale or an offer to sell or the solicitation of an offer to buy any securities.
__________ | |
12 | Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to long-term debt, see "Reconciliation of non-GAAP Financial Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
Credit Facility and Credit Rating
As at March 31, 2024 , available liquidity under the Company's new unsecured revolving bank credit facility (as further described below) was approximately $2.0 billion , not including the uncommitted $1.0 billion accordion feature.
On February 12, 2024 , the Company replaced its $1.2 billion unsecured revolving bank credit facility with a new $2.0 billion unsecured revolving bank credit facility, including an increased uncommitted accordion feature of $1.0 billion , and having a maturity date of February 12, 2029 . In addition to the increased size and extended term of the new unsecured revolving bank credit facility, the new credit facility includes enhancements to its terms and conditions more in line with the Company's credit profile and improves its financial flexibility and strengthens its financial position. At the same time, the Company's $600.0 million term loan was amended to align the terms and conditions with the new unsecured revolving credit facility.
On March 28, 2024 , Moody's Ratings upgraded the Company's investment grade credit rating to Baa1 with a Stable Outlook recognizing the Company's financial strength and stability. In addition, Fitch has provided an investment grade credit rating of BBB+ (Stable Outlook). These ratings underscore the Company's strong business and credit profile, with low leverage and conservative financial policies, and recognize the benefits of the Company's size and scale and operations in favourable mining jurisdictions. The Company remains committed to maintaining a strong financial position and an investment grade balance sheet.
Hedges
Approximately 72% of the Company's remaining estimated Canadian dollar exposure for 2024 is hedged at an average floor price providing protection above 1.34 C$ /US$. Approximately 25% of the Company's remaining estimated Euro exposure for 2024 is hedged at an average floor price providing protection below 1.10 US$ /EUR. Approximately 69% of the Company's remaining Australian dollar exposure for 2024 is hedged at an average floor price providing protection above 1.46 A$ /US$. The Company does not currently hedge its exposure to the Mexican peso. The Company's full year 2024 cost guidance is based on assumed exchange rates of 1.34 C$ /US$, 1.10 US$ /EUR, 1.45 A$ /US$ and 16.50 MXP /US$.
Including the diesel purchased for the Company's Nunavut operations that was delivered in the 2023 sealift, approximately 46% of the Company's remaining estimated diesel exposure for 2024 is hedged at an average benchmark price of $0.72 per litre (excluding transportation and taxes), which is expected to reduce the Company's exposure to diesel price volatility in 2024. The Company's full year 2024 cost guidance is based on an assumed diesel benchmark price of $0.80 per litre (excluding transportation and taxes).
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. Hedging positions are not factored into 2024 or future guidance.
Shareholder Returns
Dividend Record and Payment Dates for the Second Quarter of 2024
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on June 14, 2024 to shareholders of record as of May 31, 2024 . Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2024 Fiscal Year
Record Date | Payment Date |
March 1, 2024* | March 15, 2024* |
May 31, 2024** | June 14, 2024** |
August 30, 2024 | September 16, 2024 |
November 29, 2024 | December 16, 2024 |
*Paid
**Declared
Normal Course Issuer Bid
In addition to the quarterly dividend, the Company believes that its NCIB provides a flexible and complementary tool as part of the Company's overall capital allocation program and that it generates value for shareholders. In the first quarter of 2024, the Company repurchased 375,000 common shares for an aggregate of $19.9 million under the NCIB. The NCIB permits the Company to purchase up to $500.0 million of its common shares subject to a maximum of 5% of its issued and outstanding common shares. Purchases under the NCIB may continue for up to one year from the commencement day on May 4, 2023 .
The Company intends to seek approval from the TSX to renew the NCIB for another year on substantially the same terms. Additional details will be provided at the time of the renewal.
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 .
2023 Sustainability Report Illustrates Continued Commitment to Strong ESG Performance and Transparency
On April 25, 2024 , the Company released its 2023 Sustainability Report (the "Report") which provides an update on the Company's strategy, practices and risk management approach in the key areas of health and safety, ESG and the sustainability performance of mining operations.
This marks the 15 th year that the Company has produced a detailed account of its ESG performance. The Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards, is aligned with the Task Force on Climate Related Financial Disclosures (TCFD) and includes additional mining industry specific indicators from the Sustainability Accounting Standards Board (SASB) Metals and Mining disclosures and metrics.
The theme of the Report, "Global Approach, Regional Focus", reflects the Company's commitment that, as the Company expands and evolves as an organization, it remains deeply rooted in and committed to the regions in which it operates.
The Company aims to be a partner of choice within the mining industry by:
- Having strong ESG performance – In 2023, the Company achieved the best safety performance in its over 66-year history and maintained or improved performance across many other key ESG indicators, including zero significant environmental incidents, the efficient management of water (reducing freshwater usage per ounce of gold produced) and increased local employment and procurement
- Addressing climate change and working towards net-zero by 2050 – In 2023, the Company's decarbonization efforts focused on energy efficiency, technology transition and increased renewable energy. In accordance with best practices, the Company's greenhouse gas emissions (GHG) were calculated to account for the acquisition of Canadian Malartic. The Company continues to be a low intensity gold producer and its GHG intensity per ounce of gold for all its operations are below the industry average
- Being a great place to work – The Company is committed to providing a safe, diverse, inclusive and collaborative workplace for its people. In 2023, 66% of our workforce were local residents
- Investing in communities – Being a trusted and valued member of the communities associated with the Company's operations remains a fundamental principle and priority for Agnico Eagle. In 2023, the Company's donations and sponsorships to local organizations in the regions it operates were approximately $16 million and the Company spent approximately $1.9 billion on locally-sourced goods and services, approximately $1 billion of which went to Indigenous businesses
- Mining responsibly – The Company is committed to being a responsible miner and contributing to the sustainable development of the regions in which we operate. The Company is a long-time supporter of recognized international sustainability frameworks, including Towards Sustainable Mining (TSM), Responsible Gold Mining Principles (RGMP), the Voluntary Principles on Security and Human Rights (VPSHRs), the Conflict-Free Gold Standard and the Task Force on Climate-related Financial Disclosures
The Company's 2023 Sustainability Report can be accessed here .
Update on Key Value Drivers and Pipeline Projects
Highlights on key value drivers (Odyssey project, Detour Lake mine and optimization of assets and infrastructure in the Abitibi region of Quebec ) and the Hope Bay and San Nicolás projects are set out below. Details on certain mine expansion projects (Meliadine Phase 2 expansion and Amaruq underground) are set out in the applicable operational sections of this news release.
Odyssey Project
In the first quarter of 2024, underground development continued to exceed targets. At the main ramp, the Company achieved a lateral development rate of 167 metres per month, exceeding the target rate of 140 metres per month. The ramp reached the first production level of East Gouldie (level 75) in February 2024 , ahead of schedule, and, as at March 31, 2023 , the ramp was at a depth of 765 metres.
In terms of total underground development, a record 1,259 metres was achieved at the Odyssey project in March 2024 . Equipment remotely tele-operated from the surface (scoops, jumbos and cable bolters) continued to drive overall development productivity gains. Autonomous trucks, tested in the first quarter of 2024, are expected to further support the development and production performance. The Company continued to develop the main ventilation system at the Odyssey project, with the completion of the future exhaust raise between levels 36 and 54.
Shaft sinking activities were more productive during the quarter. In the first quarter of 2024, the average conventional sinking rate was 1.8 metres per day, a 64% improvement when compared to the fourth quarter of 2023, and the overall sinking rate was 2.4 metres per day when factoring the pre-sinking of the shaft between levels 26 and 36. The second pre-sink leg of the shaft was extended by 20 metres and will now be between levels 54 and 66. The pre-sinking of this leg is expected to be completed in the second quarter of 2024. As at March 31, 2024 , the shaft had reached a depth of approximately 452 metres. The Company still expects to complete excavation of the shaft in 2027.
The temporary loading station, previously planned at level 102, will now be built at level 64. The service hoist that will be connected to the temporary loading pocket will support the transportation of people, materials and waste to and from Level 64. The change in design is expected to provide several advantages: (i) the loading station will be developed and built from the ramp rather than from the shaft, which is expected to simplify and accelerate the construction and lower the costs; (ii) the temporary loading station and service hoist are now expected to be operational by mid-2025, six months earlier than previously planned; and (iii) the hoisting capacity is expected to increase from 2,000 tpd to 3,500 tpd as a result of the shorter hoisting cycle, which is expected to reduce the haul truck requirement in years 2025 to 2027. Level 64 is also where the ramps to the East Gouldie, Odyssey North and Odyssey South deposits are planned to connect.
Surface construction progressed as planned and on budget in the first quarter of 2024. Key areas of focus included the main hoist building, phase 2 of the paste plant to expand capacity to 20,000 tpd and the operational complex. At the main hoist building, the installation of the interior architecture, the HVAC and main electrical systems is ongoing. The mechanical and electrical components for the service hoists were delivered and the hoist concrete foundation was completed in the first quarter of 2024. The conceptual engineering for the paste plant expansion is expected to be completed in the second quarter of 2024. The bids for the construction of the operational complex were received and the selected turnkey contractor is expected to mobilize on site in the third quarter of 2024. The construction of the operational complex is expected to be completed by the end of 2025.
Exploration drilling at the Odyssey mine totalled 29,395 metres during the first quarter of 2024 with 11 drill rigs in operation.
At the East Gouldie deposit, gold mineralization continued to be intersected outside of the current mineral resource envelope with highlight hole MEX23-309 returning 4.5 g/t gold over 30.0 metres at 1,162 metres depth, including 8.0 g/t gold over 6.5 metres at 1,156 metres depth, in an intersection located 1,060 metres east of current mineral reserves. In an intersection located 420 metres east of the lower portion of the East Gouldie mineral reserves, hole MEX23-310Z returned 3.1 g/t gold over 32.8 metres at 1,556 metres depth, including 6.5 g/t gold over 4.8 metres at 1,558 metres depth. In the western extension of the East Gouldie mineralized envelope, hole MEX23-304W intersected 3.3 g/t gold over 14.6 metres at 1,246 metres depth and approximately 240 metres west of the East Gouldie inferred mineral resources.
These holes demonstrate the potential to add inferred mineral resources laterally to the east and to the west at East Gouldie with further drilling into these extensions of mineralization.
Selected recent drill intercepts from the Odyssey mine are set out in the table and composite longitudinal section below.
Drill hole | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) | Gold grade (g/t) (capped)* |
MEX23-304W | 1,559.5 | 1,575.1 | 1,246 | 14.6 | 3.3 | 3.3 |
MEX23-309 | 1,618.0 | 1,651.1 | 1,162 | 30.0 | 4.5 | 4.5 |
including | 1,622.1 | 1,629.2 | 1,156 | 6.5 | 8.0 | 8.0 |
MEX23-310Z | 1,837.0 | 1,871.9 | 1,556 | 32.8 | 3.1 | 3.1 |
including | 1,854.5 | 1,860.3 | 1,558 | 4.8 | 6.5 | 6.5 |
*Results from East Gouldie use a capping factor of 20 g/t gold |
[Odyssey mine – Composite Longitudinal Section]
Detour Lake Mine
In the first quarter of 2024, the mill continued to show improved performance when compared to the prior year period. The throughput rate was approximately 71,451 tpd, the highest for a first quarter period when mill operations can be affected by the colder temperatures. During the quarter, the process optimization initiatives remained focused on optimizing grinding efficiency and on improving the load balance between the SAG mills and the ball mills.
New instrumentation was installed in the SAG mill (known as "mill slicer"), which is expected to improve the control of the load balance between the SAG mills and the ball mills. These instruments are already in use at the Goldex and Canadian Malartic mills. Trials with new screen panel and grate configuration for the SAG discharge were carried out during the quarter and additional trials are planned in the second and third quarters of 2024. New liners for the secondary crushers were also tested during the quarter and yielded favourable results in terms of lifespan which should help reduce downtime at the secondary crushers. Further testing of these liners is planned in the second and third quarters of 2024. Other initiatives that are expected to improve mill throughput in 2024 include the installation of a ball mill discharge grizzly in one of the lines and the scalping screens.
The Company still expects the mill to reach a throughput rate of approximately 76,700 tpd (equivalent to an annualized rate of approximately 28 million tonnes per annum) by the end of 2024.
In the first quarter of 2024, the Company continued to advance an internal evaluation of underground mining scenarios and expects to provide an update on the project in the second quarter of 2024. With the update, the Company will present the proposed next steps to de-risk and optimize the project.
Exploration drilling at Detour Lake during the first quarter totalled 58,000 metres in the West Pit and West Pit Extension with a focus on infill drilling in the shallow portion of the West Pit Extension at underground depths immediately west of the West Pit mineral resources and near the potential exploration ramp for the Underground Project.
Recent highlights from infill drilling include: hole DLM23-818 returning 3.9 g/t gold over 25.4 metres at 369 metres depth, approximately 200 metres west of the West Pit mineral resource; hole DLM23-775 returning 5.4 g/t gold over 16.6 metres at 307 metres depth, approximately 350 metres west of the West Pit mineral resource; and hole DLM23-805 returning 3.4 g/t gold over 29.4 metres at 562 metres depth, approximately 750 metres west of the West Pit mineral resource.
Selected recent drill intercepts from the Detour Lake mine are set out in the table, plan map and composite longitudinal section below.
Drill hole | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) |
DLM23-775 | 343.0 | 361.0 | 307 | 16.6 | 5.4 |
DLM24-805 | 645.0 | 678.0 | 562 | 29.4 | 3.4 |
including | 660.8 | 664.1 | 563 | 2.9 | 15.1 |
DLM24-818 | 405.9 | 436.2 | 369 | 25.4 | 3.9 |
including | 432.0 | 436.2 | 380 | 3.5 | 15.3 |
*Results from Detour Lake are uncapped. |
[Detour Lake – Plan Map and Composite Longitudinal Section]
Optimization of Other Assets and Infrastructure in the Abitibi Region
At Macassa, the development of the Amalgamated Kirkland ("AK") deposit is on track for initial production in the fourth quarter of 2024. At Upper Beaver, the Company is concluding a trade-off analysis on processing options and expects to provide an update of the project and next steps at mid-year 2024. At Wasamac, the Company continues to advance its stakeholder engagement initiatives, while assessing the optimal mining rate and processing options.
Hope Bay – Step-Out Drilling Continues to Extend Madrid's High-Grade Patch 7 Zone at Depth and Laterally
Exploration drilling at Hope Bay during the first quarter of 2024 totalled 30,600 metres and returned strong results in the Gap area between the Patch 7 and Suluk zones of the Madrid deposit.
Drilling targeted an area in Patch 7 between previously reported hole HBM23-143, which intersected 16.3 g/t gold over 28.6 metres at 445 metres depth (see the news release dated February 15, 2024 , with the depth value revised in this new release), and hole HBM23-105, which intersected 10.0 g/t gold over 14.0 metres at 677 metres depth (see the news release dated July 26, 2023 ).
Recent highlights from this area include hole HBM24-171, which intersected 20.8 g/t gold over 17.7 metres at 461 metres depth, including 29.1 g/t gold over 9.5 metres at 466 metres depth, 90 metres north and down-dip from hole HBM23-143; and hole HBM-174, which intersected 14.1 g/t gold over 16.4 metres at 480 metres depth, including 27.2 g/t gold over 6.7 metres at 476 metres depth, 66 metres north and down-dip from hole HBM23-143.
At greater depth, hole HBM24-160 intersected 11.5 g/t gold over 18.8 metres at 573 metres depth, 165 metres north and down-dip from hole HBM23-143, demonstrating the continuity of potentially economic mineralization between holes HBM24-160 and HBM23-143 over at least 165 metres.
With this emerging new mineralized area so far showing grades and thicknesses greater than average for the Madrid deposit, the Company's objective is to intensify drilling in this area for the rest of the year as this area could have a positive impact on mining scenarios for potential project redevelopment.
Selected recent drill intercepts from the Madrid deposit are set out in the table and composite longitudinal section below.
Drill hole | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped)* |
HBM23-105** | 815.0 | 839.5 | 677 | 14.0 | 14.5 | 10.0 |
including | 830.5 | 838.0 | 682 | 4.3 | 42.3 | 27.6 |
HBM23-143** | 560.4 | 594.0 | 445 | 28.6 | 17.6 | 16.3 |
including | 560.4 | 587.2 | 443 | 22.8 | 20.8 | 19.1 |
HBM24-160 | 672.4 | 712.5 | 573 | 18.8 | 11.7 | 11.5 |
HBM24-171 | 547.0 | 580.0 | 461 | 17.7 | 25.0 | 20.8 |
including | 560.0 | 577.8 | 466 | 9.5 | 37.0 | 29.1 |
HBM24-174 | 589.5 | 613.4 | 480 | 16.4 | 18.7 | 14.1 |
including | 591.1 | 600.8 | 476 | 6.7 | 38.7 | 27.2 |
*Results from Madrid deposit at Hope Bay use a capping factor of 50 g/t gold. |
**Previously released, with the depth values for hole HBM23-143 revised in this news release. |
[Madrid Deposit at Hope Bay – Composite Longitudinal Section]
San Nicolás Copper Project
In January 2024 , Minas de San Nicolás submitted their MIA-R permit application (Environmental Impact Assessment) and continued engagement with government and stakeholders in support of permit review. In addition, the Minas de San Nicolás team continued to advance feasibility study work, with plans to initiate detailed engineering in the first half of 2025. Project approval would be expected to follow, subject to receipt of permits and the results of the feasibility study.
ABITIBI REGION, QUEBEC
LaRonde Complex – Automation Initiatives at LZ5 Continue to Yield Higher Productivity; Gold Production Affected by Lower Grades
LaRonde Complex – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 680 | 707 | ||
Tonnes of ore milled per day | 7,473 | 7,867 | ||
Gold grade (g/t) | 3.41 | 3.72 | ||
Gold production (ounces) | 68,364 | 79,607 | ||
Production costs per tonne (C$) | $ 187 | $ 118 | ||
Minesite costs per tonne (C$) 13 | $ 158 | $ 157 | ||
Production costs per ounce | $ 1,383 | $ 778 | ||
Total cash costs per ounce of gold produced | $ 1,065 | $ 958 | ||
__________ | |
13 | Minesite costs per tonne is a non-GAAP measure that is not standardized under IFRS and is reported on a per tonne of ore milled basis. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to production costs see "Reconciliation of Non-GAAP Performance Measures" and "Note Regarding Certain Measures of Performance", respectively, below. |
Gold Production
- First Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower volumes of ore milled and lower gold grades as expected under the mining sequence
Production Costs
- First Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to stockpile consumption, higher underground maintenance costs and the lower volumes of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period primarily due to the same reasons as for the higher production costs per tonne, the timing of inventory sales and lower gold grades
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period primarily due to lower volumes of ore milled in the current period. Total cash costs per ounce increased when compared to the prior-year period primarily due to lower gold grades
Highlights
- The Company continued its automation initiatives at LaRonde Zone 5 ("LZ5"), improving overall productivity and increasing the production rate to 3,500 tpd in the quarter, compared to approximately 3,300 tpd in 2023. Starting in the first quarter of 2024, the Friday night shift was converted from manual to automated operation. All development and production activities on Friday, Saturday and Sunday night shifts are now done remotely from surface, which resulted in approximately 19% of the tonnage mined in automated mode in the first quarter of 2024
- Production from the 11-3 Zone at the LaRonde mine ramped up as planned, contributing over 105,000 tonnes in the first quarter of 2024. The 11-3 Zone is expected to continue to add additional flexibility to the LaRonde mine production plan
- The LZ5 processing facility was placed on care and maintenance during the third quarter of 2023 and is on track to restart in the third quarter of 2024. During the downtime, the Company is overhauling the facility's leach tanks. Ore from LZ5 will continue to be processed at the LaRonde mill until the restart of the LZ5 processing facility, which is expected early in the second half of 2024
- At the LaRonde processing facility, the focus remained on improving mill recoveries by optimizing the blending of ore from the LaRonde mine, 11-3 Zone, LZ5, Goldex and Akasaba West
- The LaRonde complex received certification under the International Cyanide Management Code during the first quarter of 2024
Canadian Malartic Complex – Record Quarterly Gold Production Driven by Higher Tonnage Milled and Higher Gold Grades from Odyssey; Odyssey Ramp Development Reached the Top of the East Gouldie Deposit
Canadian Malartic Complex – Operating Statistics* | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 5,173 | 4,524 | ||
Tonnes of ore milled per day | 56,846 | 50,267 | ||
Gold grade (g/t) | 1.21 | 1.19 | ||
Gold production* (ounces) | 186,906 | 80,685 | ||
Production costs per tonne (C$) | $ 33 | $ 34 | ||
Minesite costs per tonne (C$) | $ 42 | $ 39 | ||
Production costs per ounce | $ 677 | $ 710 | ||
Total cash costs per ounce | $ 850 | $ 794 | ||
* Gold production reflects Agnico Eagle's 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter. Tonnage of ore milled is reported on a 100% basis for both periods. |
Gold Production
- First Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to the increase in the Company's ownership percentage between periods from 50% to 100% as a result of the Yamana Transaction, which closed on March 31, 2023 , as well as higher throughput and gold grades
Production Costs
- First Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period primarily due to higher volume of ore milled. Production costs per ounce decreased when compared to the prior-year period due to lower production costs per tonne and higher gold grades
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period primarily due to the consumption of stockpiles during the quarter, partially offset by higher volume of ore milled. 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
Highlights
- At the Barnat pit, good equipment availability and productivity, together with mining areas with softer ultramafic ore, drove solid operational performance despite challenging weather conditions
- At Odyssey South, the mining rate and production were slightly below plan at approximately 3,300 tpd and 17,700 ounces of gold, respectively. The waste generated from the pre-sinking of the shaft between levels 54 to 66 and the raise bore from levels 36 to 54 impacted the ore and waste haulage by ramp. The underground operations are expected to gain additional flexibility in the second quarter of 2024, with the start of a second mining front and the addition of four 65 tonnes haulage trucks
- Stope reconciliation at Odyssey South remains positive, primarily from the contribution of the internal zones, which resulted in approximately 16% more gold ounces produced than anticipated
- Mill throughput continued to be above plan due to softer rock conditions. High mill throughput, high gold grades resulting from the contribution from Odyssey and higher mill recoveries than planned resulted in record quarterly production at the Canadian Malartic complex
- At the Canadian Malartic pit, the Company continued the construction of the central berm (approximately 74% complete) in preparation for in-pit tailings disposal, which is scheduled to start in mid-2024
- In the first quarter of 2024 at the Odyssey mine, ramp development continued to exceed targets, with the ramp reaching the first production level of East Gouldie (level 75) in February 2024 . An update on the Odyssey project development, construction and exploration highlights is set out in the Update on Key Value Drivers and Pipeline Projects section above
Goldex Complex – Akasaba West Project Achieves Commercial Production; Initial Production from Deep 2 Zone on Track for Second Quarter
Commercial production was achieved at the Akasaba West project on February 1, 2024 . The ore from Akasaba is hauled and processed at the Goldex mill. The Goldex mine and the Akasaba mine now form the Goldex complex.
Goldex Complex – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 760 | 698 | ||
Tonnes of ore milled per day | 8,352 | 7,756 | ||
Gold grade (g/t) | 1.64 | 1.73 | ||
Gold production (ounces) | 34,388 | 34,023 | ||
Production costs per tonne (C$) | $ 59 | $ 54 | ||
Minesite costs per tonne (C$) | $ 60 | $ 52 | ||
Production costs per ounce | $ 965 | $ 818 | ||
Total cash costs per ounce | $ 948 | $ 810 | ||
Gold Production
- First Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as a result of the additional production from Akasaba West, partially offset by lower gold grades
Production Costs
- First Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher underground production costs, higher open pit mining costs associated with the Akasaba West deposit and higher milling costs, partially offset by higher volume of ore milled. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for production costs per tonne as well as lower gold grades
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to higher minesite costs per tonne and lower gold grades
Highlights
- Akasaba West is expected to provide additional production flexibility to the Goldex complex, contributing approximately 1,750 tpd grading 0.84 g/t of gold and 0.48% of copper to the Goldex processing facility, while the underground mine is now expected to contribute approximately 7,000 tpd
- In the first quarter of 2024, production from South Zone Sector 3 contributed approximately 1,000 tpd as planned, providing higher gold grades and additional flexibility for the mining operations
- The development of the Deep 2 Zone continued to advance as planned and initial production is expected in the second quarter of 2024
ABITIBI REGION, ONTARIO
Detour Lake – Record Quarterly Tonnes Mined; Continued Mill Improvement Year-Over-Year ; Gold Production Affected by Lower Grades and Lower Mill Recovery
Detour Lake Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 6,502 | 6,397 | ||
Tonnes of ore milled per day | 71,451 | 71,078 | ||
Gold grade (g/t) | 0.82 | 0.86 | ||
Gold production (ounces) | 150,751 | 161,857 | ||
Production costs per tonne (C$) | $ 27 | $ 24 | ||
Minesite costs per tonne (C$) | $ 27 | $ 26 | ||
Production costs per ounce | $ 875 | $ 704 | ||
Total cash costs per ounce | $ 871 | $ 771 | ||
Gold Production
- First Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades as expected under the mining sequence and lower mill recovery due to abnormal chipping of grinding media affecting grinding efficiency
Production Costs
- First Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period due to higher milling and mining costs and a lower stockpile build-up in the current period, partially offset by a higher volume of ore processed. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for production costs per tonne as well as lower gold grades
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to lower gold grades and higher minesite costs per tonne
Highlights
- In the first quarter of 2024, the open pit set a record of quarterly tonnes mined, despite unseasonably warm and variable winter conditions affecting operating conditions in the pit. Improvements in truck utilization drove higher truck productivity
- In the first quarter of 2024, the mill throughput rate was approximately 71,451 tpd, which was the highest for a first quarter period, demonstrating continued mill improvement year-over-year. This solid performance was achieved despite challenges with abnormal chipping of grinding media in the SAG mill which affected throughput and grinding efficiency and resulted in lower mill recovery. The Company is working with its suppliers to resolve the issue and further optimize the grinding efficiency in the SAG mill. The introduction of new grinding media in mid-March 2024 yielded favourable results and further testing is scheduled in the second quarter of 2024
- The expansion of the mine maintenance shops to support increased mining rates and a larger production fleet is ongoing. All long lead items have been ordered and construction commenced in the first quarter of 2024. The new mining service facility is expected to be completed in 2025
- An upgrade of the 230kV main substation is planned to improve the power quality at the mine and improve the site readiness for potential projects such as the Detour Lake underground and mill expansion. Approximately 95% of the engineering was completed as at March 31, 2024 . The upgrades related to power quality are expected to be completed in 2024 and those related to improving site readiness for future projects are expected in 2025
- An update on the mill expansion work, the advancement of the underground evaluation and exploration results is set out in the Update on Key Value Drivers and Pipeline Projects section above
Macassa – Record Quarterly Mill Throughput; Strong Operational Performance Driven by Higher Productivity from Continued Workforce Ramp-Up and Improved Equipment Availability
Macassa Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 134 | 87 | ||
Tonnes of ore milled per day | 1,473 | 967 | ||
Gold grade (g/t) | 16.27 | 23.32 | ||
Gold production (ounces) | 68,259 | 64,115 | ||
Production costs per tonne (C$) | $ 483 | $ 589 | ||
Minesite costs per tonne (C$) | $ 493 | $ 585 | ||
Production costs per ounce | $ 698 | $ 592 | ||
Total cash costs per ounce | $ 711 | $ 604 | ||
Gold Production
- First Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as a result of increased productivity from a larger workforce and improved equipment availability and the addition of ore sourced from the Near Surface deposit, partially offset by lower gold grades
Production Costs
- First Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period, partially offset by higher underground development and mining costs. Production costs per ounce increased when compared to the prior-year period due to lower gold grades, partially offset by lower production costs per tonne
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne decreased when compared to the prior-year period due to the same reasons outlined above for the lower production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per ounce
Highlights
- During the first quarter of 2024, Macassa continued to demonstrate sustained productivity gains with the highest quarterly gold production achieved since its acquisition by the Company, driven by record quarterly volume skipped and record quarterly mill throughput
- In the first quarter of 2024, realized gold grades were higher than plan primarily due to accelerated development of a higher grade cut and fill area, which was originally planned to be mined in the second half of 2024
- The commissioning of the ventilation system upgrade was completed in the first quarter of 2024 with both surface fans reaching required operating capacity
- At the Portal (ramp access to the Near Surface and AK deposits), production from long hole stopes in the Near Surface deposit continued in the first quarter of 2024, while the development of the AK deposit is on-track for initial production in the fourth quarter of 2024
- Exploration drilling at Macassa during the first quarter totalled 42,900 metres with highlights that included hole 58-1018 returning 33.6 g/t gold over 3.3 metres at 2,150 metres depth in an eastern extension of the Main Break Zone; and infill hole KLAK-273 returning 11.8 g/t gold over 5.0 metres at 342 metres depth in the shallow eastern extension of the AK deposit
NUNAVUT
Meliadine Mine – Record Monthly Throughput and Ore Haulage Performance in January 2024
Meliadine Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 496 | 476 | ||
Tonnes of ore milled per day | 5,451 | 5,300 | ||
Gold grade (g/t) | 6.24 | 6.12 | ||
Gold production (ounces) | 95,725 | 90,467 | ||
Production costs per tonne (C$) | $ 254 | $ 228 | ||
Minesite costs per tonne (C$) | $ 245 | $ 239 | ||
Production costs per ounce | $ 976 | $ 897 | ||
Total cash costs per ounce | $ 942 | $ 937 | ||
Gold Production
- First Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput as result of strong operational performance at the mine and mill and gold grades as expected under the mining sequence
Production Costs
- First Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period primarily due to higher open pit volumes mined, partially offset by the higher volume of ore milled in the current period. Production costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for production costs per tonne as well as timing of inventory sales, partially offset by higher gold grades
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above for production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for production costs per ounce
Highlights
- Both the open pit and the underground mine performed above plan in the first quarter of 2024, with the underground mine showing significant improvement and achieving record volumes hauled in January 2024 following underground optimization initiatives. The processing plant also continued to demonstrate overall strong performance, with record monthly volume processed in January 2024 of 191,000 tonnes
- The mill expansion project remains on-track for completion in mid-2024. The key focus areas in the first quarter of 2024 were the commissioning of the filter press and equipment installation, the installation of the leach tanks and agitators at the carbon in leach process and the mechanical, piping and electrical work at the secondary grinding circuit. With the commissioning of the Phase 2 mill expansion, the processing rate ramp-up is expected to increase throughput to 6,000 tpd by year-end 2024
- Construction was completed on the Western ventilation intake and the system is expected to enter into production in the second quarter of 2024
- During the quarter, the Company submitted a proposal to the Nunavut Water Board to amend the current Type A Water license to include tailings, water and waste management infrastructure at the Pump, F-Zone, Wesmeg and Discovery deposits. In January 2024 , the Company received confirmation from the Nunavut Planning Commission that no review was required from the Nunavut Impact Review Board (NIRB) and that the new water license amendment process could be initiated. The Company expects permits to be received in the fourth quarter of 2024
- Exploration drilling at Meliadine during the first quarter totalled 24,500 metres, highlighted by significant high-grade intersections in the Wesmeg and Wesmeg North deep extension to the east, demonstrated by hole M23- 3732B returning 10.2 g/t gold over 5.8 metres in Wesmeg's Lode 625 at 349 metres depth and hole ML300-10340-D11 returning 11.1 g/t gold over 3.6 metres in Wesmeg North's Lode 972 at 401 metres depth and 6.1 g/t gold over 7.4 metres in Wesmeg's Lode 625 at 467 metres depth
Meadowbank Complex – Record Quarterly Mill Throughput
Meadowbank Complex – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 1,071 | 983 | ||
Tonnes of ore milled per day | 11,769 | 10,922 | ||
Gold grade (g/t) | 4.09 | 3.91 | ||
Gold production (ounces) | 127,774 | 111,110 | ||
Production costs per tonne (C$) | $ 143 | $ 176 | ||
Minesite costs per tonne (C$) | $ 151 | $ 174 | ||
Production costs per ounce | $ 893 | $ 1,170 | ||
Total cash costs per ounce | $ 937 | $ 1,134 | ||
Gold Production
- First Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected under the mine plan and higher throughput as operations in the prior-year period were affected by unplanned downtime at the SAG mill
Production Costs
- First Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period due to a higher volume of ore milled and a build-up in stockpiles, partially offset by the lower deferred stripping adjustment in the current period. Production costs per ounce decreased when compared to the prior-year period due to higher gold grades and lower production costs per tonne
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne decreased when compared to the prior-year period due to the same reasons outlined above for the lower production costs per tonne. Total cash costs per ounce decreased when compared to the prior-year period due to the same reasons outlined above for the lower production costs per ounce
Highlights
- The open pit operation continued to deliver solid haulage performance during the first quarter of 2024, with reduced weather delays also contributing to the positive production results. Gold production continued to benefit from positive reconciliation on ore tonnage
- The underground operation achieved its strongest quarter, setting quarterly performance records for the cemented rock fill, production drilling and development in the first quarter of 2024. This was accomplished through continued productivity gains that demonstrated sustained improvement through the full mining cycle and increased adherence and compliance to plan
- Stripping for the IVR pit push-back, which was approved in the fourth quarter of 2023, commenced in the first quarter of 2024
AUSTRALIA
Fosterville – Quarterly Gold Production in Line with Plan; Work on Ventilation Upgrade Continues to Advance
Fosterville Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 172 | 148 | ||
Tonnes of ore milled per day | 1,890 | 1,644 | ||
Gold grade (g/t) | 10.51 | 18.55 | ||
Gold production (ounces) | 56,569 | 86,558 | ||
Production costs per tonne (A$) | $ 301 | $ 367 | ||
Minesite costs per tonne (A$) | $ 275 | $ 343 | ||
Production costs per ounce | $ 595 | $ 423 | ||
Total cash costs per ounce | $ 537 | $ 396 | ||
Gold Production
- First Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to the lower gold grades as expected under the mining sequence and as a result of lower than expected gold grades in a high grade Swan stope mined, partially offset by higher throughput
Production Costs
- First Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period due to lower mining and royalty costs and higher volume of ore milled. Production costs per ounce increased when compared to the prior-year period due to lower gold grades, partially offset by the lower mining and royalty costs and the weaker Australian dollar relative to the U.S. dollar
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne decreased when compared to the prior-year period due to the same reasons outlined above for the lower production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per ounce
Highlights
- With the completion of the key underground development associated with the ventilation upgrade in the fourth quarter of 2023, the mine ramped up its production activities and exceeded volume targets in the first quarter of 2024
- The higher ore volume mined drove the strong operating performance of the processing facility, with throughput exceeding plan. The Company continues to focus on productivity gains and cost control at the mine and the mill to maximize throughput and reduce unit costs
- The Company is currently advancing an upgrade of the primary ventilation system to sustain the mining rate in the Lower Phoenix zones in future years. In the first quarter of 2024, the Company continued the excavation of the ventilation raises and the project is progressing as planned at approximately 25% completion. The Company expects the project to be completed by early 2025
FINLAND
Kittila – Annual Autoclave Maintenance Completed as Planned; Gold Production on Target; Positive Exploration Results Continue to Demonstrate Expansion Potential of Main Zone and Sisar Zone
Kittila Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 482 | 496 | ||
Tonnes of ore milled per day | 5,297 | 5,511 | ||
Gold grade (g/t) | 4.31 | 4.73 | ||
Gold production (ounces) | 54,581 | 63,692 | ||
Production costs per tonne (EUR) | € 113 | € 98 | ||
Minesite costs per tonne (EUR) | € 112 | € 98 | ||
Production costs per ounce | $ 1,082 | $ 837 | ||
Total cash costs per ounce | $ 1,070 | $ 806 | ||
Gold Production
- First Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower gold grades as expected under the mining sequence, lower throughput as a result of the planned annual maintenance of the autoclave and lower gold recoveries as a result of higher sulphur and organic carbon content
Production Costs
- First Quarter of 2024 – Production costs per tonne increased when compared to the prior-year period due to the lower volume of ore milled, higher mill maintenance costs, higher contractor costs for waste haulage and increased mining royalty costs, partially offset by lower underground mining development costs. Production costs per ounce increased when compared to the prior-year period due to lower gold grades and higher production costs per tonne
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per tonne. Total cash costs per ounce increased when compared to the prior-year period due to the same reasons outlined above for the higher production costs per ounce
Highlights
- A ten-day planned shutdown for the autoclave and other mill maintenance was completed in the first quarter of 2024. Mill throughput was on target, however, recovery was lower than plan due to high carbon and sulfur content in the ore, affecting gold production. Trial tests were completed to reduce the organic carbon which yielded positive results, and the mill showed improved recovery towards the end of the first quarter of 2024
- Exploration at Kittila during the first quarter continued to demonstrate the expansion potential of both the Main Zone and Sisar Zone to the north and near the bottom of the shaft. In the Roura area at depth, hole ROD23-701C returned 10.5 g/t gold over 3.1 metres in the Sisar Zone at 1,834 metres depth, approximately 200 metres below current mineral resources, showing the potential of this area which is open at depth and to the north
MEXICO
Pinos Altos – Solid Performance at Reyna de Plata Pit Drives Quarterly Production
Pinos Altos Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | 426 | 364 | ||
Tonnes of ore milled per day | 4,681 | 4,044 | ||
Gold grade (g/t) | 1.89 | 2.16 | ||
Gold production (ounces) | 24,725 | 24,134 | ||
Production costs per tonne | $ 78 | $ 90 | ||
Minesite costs per tonne | $ 94 | $ 90 | ||
Production costs per ounce | $ 1,351 | $ 1,364 | ||
Total cash costs per ounce | $ 1,348 | $ 1,116 | ||
Gold Production
- First Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher throughput from improved underground productivity, partially offset by the lower gold grades as expected under the mining sequence
Production Costs
- First Quarter of 2024 – Production costs per tonne decreased when compared to the prior-year period due to the higher volume of ore milled in the current period, partially offset by the higher underground development costs related to increased ground support requirements. Production costs per ounce decreased when compared to the prior-year period due to lower production costs per tonne, partially offset by lower gold grades and the stronger Mexican Peso relative to the U.S. dollar
Minesite and Total Cash Costs
- First Quarter of 2024 – Minesite costs per tonne increased when compared to the prior-year period due to inventory adjustments and higher underground development costs, partially offset by the higher volume of ore milled. Total cash costs per ounce increased when compared to the prior-year period due to higher minesite costs per tonne, lower gold grades and lower by-product revenue in the current period.
La India – Residual Leaching to Continue Through Year-End 2024
La India Mine – Operating Statistics | Three Months Ended | |||
2024 | 2023 | |||
Tonnes of ore milled (thousands of tonnes) | — | 660 | ||
Tonnes of ore milled per day | — | 7,333 | ||
Gold grade (g/t) | — | 0.68 | ||
Gold production (ounces) | 10,582 | 16,321 | ||
Production costs per tonne | $ — | $ 30 | ||
Minesite costs per tonne | $ — | $ 33 | ||
Production costs per ounce | $ 1,510 | $ 1,231 | ||
Total cash costs per ounce | $ 1,453 | $ 1,308 | ||
Gold Production
- First Quarter of 2024 – Gold production decreased when compared to the prior-year period due to ceasing of mining operations at La India in the fourth quarter of 2023. Gold production in the first quarter of 2024 came only from residual leaching
Costs
- First Quarter of 2024 – Production costs per ounce increased when compared to the prior-year period driven primarily by the strengthening of the Mexican Peso relative to the U.S. dollar and fewer ounces of gold produced in the current period
- First Quarter of 2024 – Total cash costs per ounce decreased for the same reasons outlined above for production costs per ounce
About Agnico Eagle
Agnico Eagle is a Canadian based and led senior gold mining company and the third largest gold producer in the world, producing precious metals from operations in Canada , Australia , Finland and Mexico . It has a pipeline of high-quality exploration and development projects in these countries as well as in the United States . Agnico Eagle is a partner of choice within the mining industry, recognized globally for its leading environmental, social and governance practices. The Company was founded in 1957 and has consistently created value for its shareholders, declaring a cash dividend every year since 1983.
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 and ratios, including "total cash costs per ounce", "all-in sustaining costs per ounce", "adjusted net income", "adjusted net income per share", "cash provided by operating activities before changes in non-cash working capital balances", "cash provided by operating activities before changes in non-cash working capital balances per share", "earnings before interest, taxes, depreciation and amortization" (also referred to as EBITDA), "adjusted EBITDA", "free cash flow", "free cash flow before changes in non-cash working capital balances", "operating margin", "sustaining capital expenditures", "development capital expenditures", "net debt" and "minesite costs per tonne" 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, see "Reconciliation of Non-GAAP Financial Performance Measures" below.
Total cash costs per ounce
Total cash costs per ounce is reported on both a by-product basis (deducting by-product metal revenues from production costs) and calculated on a per ounce of gold produced basis and co-product basis (without deducting by-product metal revenues). Total cash costs per ounce on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of (loss) income for by-product revenues, inventory production costs, the impact of purchase price allocation in connection with mergers and acquisitions on inventory accounting, realized gains and losses on hedges of production costs, 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. Investors should note that total cash costs per ounce are not reflective of all cash expenditures, as they do not include income tax payments, interest costs or dividend payments.
Total cash costs per ounce on a co-product basis is calculated in the same manner as the total cash costs per ounce on a by-product basis, except that no adjustment is made for by-product metal revenues. Accordingly, the calculation of total cash costs per ounce on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals.
Total cash costs per ounce is intended to provide investors information about the cash-generating capabilities of the Company's mining operations. Management also uses these measures to, and believes they are 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 on a by-product basis measure allows management and investors to assess a mine's cash-generating capabilities at various gold prices. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne as it is not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
Agnico Eagle's primary business is gold production and the focus of its current operations and future development is on maximizing returns from gold production, with other metal production being incidental to the gold production process. Accordingly, all metals other than gold are considered by-products.
Unless otherwise indicated, total cash costs per ounce is reported on a by-product basis. Total cash costs per ounce is reported on a by-product basis because (i) the majority of the Company's revenues are from gold, (ii) the Company mines ore, which contains gold, silver, zinc, copper and other metals, (iii) it is not possible to specifically assign all costs to revenues from the gold, silver, zinc, copper and other metals the Company produces, (iv) it is a method used by management and the Board of Directors to monitor operations, and (v) many other gold producers disclose similar measures on a by-product rather than a co-product basis.
All-in sustaining costs per ounce
All-in sustaining costs per ounce (also referred to as "AISC per ounce") on a by-product basis is calculated as the aggregate of total cash costs on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options), lease payments related to sustaining assets and reclamation expenses, and then dividing by the number of ounces of gold produced. These additional costs reflect the additional expenditures that are required to be made to maintain current production levels. The AISC per ounce on a co-product basis is calculated in the same manner as the AISC per ounce on a by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment is made for by-product metal revenues. Investors should note that AISC per ounce is not reflective of all cash expenditures as it does not include income tax payments, interest costs or dividend payments, nor does it include non-cash expenditures, such as depreciation and amortization. Unless otherwise indicated, all-in sustaining costs per ounce is reported on a byproduct basis (see "Total cash costs per ounce" for a discussion of regarding the Company's use of by-product basis reporting).
Management believes that AISC per ounce is helpful to investors as it reflects total sustaining expenditures of producing and selling an ounce of gold while maintaining current operations and, as such, provides helpful information about operating performance. Management is aware, and investors should note, that these per ounce measures of performance can be affected by fluctuations in foreign exchange rates and, in the case of AISC per ounce on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne as this measure is not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS.
The Company follows the guidance on calculation of AISC per ounce released by the World Gold Council ("WGC") in 2018. The WGC is a non-regulatory market development organization for the gold industry that has worked closely with its member companies to develop guidance in respect of relevant non-GAAP measures. Notwithstanding the Company's adoption of the WGC's guidance, AISC per ounce reported by the Company may not be comparable to data reported by other gold mining companies.
Adjusted net income and adjusted net income per share
Adjusted net income is calculated by adjusting the net income as recorded in the consolidated statements of income for the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period. Adjusted net income is calculated by adjusting net income for items such as foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, revaluation gain, impairment loss charges and reversals, environmental remediation, severance and transaction costs related to acquisitions, integration costs, purchase price allocations to inventory, self-insurance losses, gains and losses on the disposal of assets and income and mining taxes adjustments. Adjusted net income per share is calculated by dividing adjusted net income by the weighted average number of shares outstanding at the end of the period on a basic and diluted basis.
The Company believes that adjusted net income and adjusted net income per share are useful to investors in that they allow for the evaluation of the results of continuing operations and in making comparisons between periods. These generally accepted industry measures are intended to provide investors with information about the Company's continuing income generating capabilities from its core mining business, excluding the above adjustments, which the Company believes are not reflective of operational performance. Management uses this measure to, and believes it is 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. Adjusted net income and adjusted net income per share are not standardized measures under IFRS and, as reported by the Company, may not be comparable to similarly labelled measures reported by other companies.
Cash provided by operating activities before changes in non-cash working capital balances and cash provided by operating activities before changes in non-cash working capital balances per share
Cash provided by operating activities before changes in non-cash working capital balances and cash provided by operating activities before changes in non-cash working capital balances per share are calculated by adjusting the cash provided by operating activities as shown in the consolidated statements of cash flows for the effects of changes in non-cash working capital balances such as trade receivables, income taxes, inventories, other current assets, accounts payable and accrued liabilities and interest payable. The per share amount is calculated by dividing cash provided by operating activities before changes in non-cash working capital balances by the weighted average number of shares outstanding on a basic basis. The Company believes that changes in working capital can be volatile due to numerous factors, including the timing of payments. Management uses these measures to, and believe they are useful to investors so they can, assess the underlying operating cash flow performance and future operating cash flow generating capabilities of the Company in conjunction with other data prepared in accordance with IFRS.
EBITDA and adjusted EBITDA
EBITDA, or earnings before interest, taxes, depreciation and amortization, is calculated by adjusting the net income as recorded in the consolidated statements of income for finance costs, amortization of property, plant and mine development and income and mining tax expense line items as reported in the consolidated statements of income. Adjusted EBITDA removes the effects of certain items that the Company believes are not reflective of the Company's underlying performance for the reporting period. Adjusted EBITDA is calculated by adjusting the EBITDA calculation for items such as foreign currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, revaluation gains and losses, impairment loss charges and reversals, environmental remediation, severance and transaction costs related to acquisitions, integration costs, purchase price allocations to inventory, self-insurance losses and gains and losses on the disposal of assets.
The Company believes EBITDA and adjusted EBITDA are useful to investors in that they allow for the evaluation of the Company's liquidity in order to fund its working capital, capital expenditure and debt repayments. These generally accepted industry measures are intended to provide investors with information about the Company's continuing cash generating capability from its core mining business, excluding the above adjustments, which management believes are not reflective of operational performance. Management uses these measures to, and believes it is helpful to investors so they can, understand and monitor the cash generating capability of the Company in conjunction with other data prepared in accordance with IFRS. EBITDA and adjusted EBITDA are not standardized measures under IFRS and, as reported by the Company, may not be comparable to similarly labelled measures reported by other companies.
Free cash flow and free cash flow before changes in non-cash working capital balances
Free cash flow is calculated by deducting additions to property, plant and mine development from the cash provided by operating activities line item as recorded in the consolidated statements of cash flows. Free cash flow before changes in non-cash working capital balances is calculated by excluding the effect of changes in non-cash working capital balances from free cash flow such as trade receivables, income taxes, inventory, other current assets, accounts payable and accrued liabilities and interest payable.
The Company believes that free cash flow and free cash flow before changes in non-cash working capital balances are useful in that they allow for the evaluation of the Company's ability to repay creditors and return cash to shareholders without relying on external sources of funding. These generally accepted industry measures also provide investors with information about the Company's financial position and its ability to generate cash to fund operational and capital requirements as well as return cash to shareholders. Management uses these measures in conjunction with other data prepared in accordance with IFRS, and believes it is helpful to investors so they can, understand and monitor the cash generating capability of the Company. Free cash flow and free cash flow before changes in non-cash working capital balances are not standardized measures under IFRS and, as reported by the Company, may not be comparable to similarly labelled measures reported by other companies.
Operating margin
Operating margin is calculated by deducting production costs from revenue from mining operations. In order to reconcile operating margin to net income as recorded in the consolidated financial statements, the Company adds the following items to the operating margin: income and mining taxes expense; other expenses (income); care and maintenance expenses; foreign currency translation (gain) loss; environmental remediation costs; gain (loss) on derivative financial instruments; finance costs; general and administrative expenses; amortization of property, plant and mine development; exploration and corporate development expenses; and revaluation gain and impairment losses (reversals). The Company believes that operating margin is a useful measure to investors as it reflects the operating performance of its individual mines associated with the ongoing production and sale of gold and by-product metals without allocating Company-wide overhead, including exploration and corporate development expenses, amortization of property, plant and mine development, general and administrative expenses, finance costs, gain and losses on derivative financial instruments, environmental remediation costs, foreign currency translation gains and losses, other expenses and income and mining tax expenses. Management uses this measure internally to plan and forecast future operating results. Management believes this measure is helpful to investors as it provides them with additional information about the Company's underlying operating results and should be evaluated in conjunction with other data prepared in accordance with IFRS. Operating margin is not a standardized measure under IFRS and, as reported by the Company, may not be comparable to similarly labelled measures reported by other companies.
Sustaining capital expenditures and development capital expenditures
Capital expenditures are classified into sustaining capital expenditures and development capital expenditures. Sustaining capital expenditures are expenditures incurred during the production phase to sustain and maintain existing assets so they can achieve constant expected levels of production from which the Company will derive economic benefits. Sustaining capital expenditures include expenditure for assets to retain their existing productive capacity as well as to enhance performance and reliability of the operations. Development capital expenditures represent the spending at new projects and/or expenditures at existing operations that are undertaken with the intention to increase production levels or mine life above the current plans. Management uses these measures in the capital allocation process and to assess the effectiveness of its investments. Management believes these measures are useful so investors can assess the purpose and effectiveness of the capital expenditures split between sustaining and development in each reporting period. The classification between sustaining and development capital expenditures does not have a standardized definition in accordance with IFRS and other companies may classify expenditures in a different manner.
Net debt
Net debt is calculated by adjusting the total of the current portion of long-term debt and non-current long-term debt as recorded on the 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. Net debt is not a standardized measure under IFRS and, as reported by the Company, may not be comparable to similarly labelled measures reported by other companies.
Minesite costs per tonne
Minesite costs per tonne are calculated by adjusting production costs as recorded in the consolidated statements of income for inventory production costs , operational care and maintenance costs due to COVID-19 and items such as in-kind royalties, smelting, refining and marketing charges, and then dividing by tonnage of ore processed. As the total cash costs per ounce can be affected by fluctuations in by‑product metal prices and foreign exchange rates, management believes that minesite costs per tonne is useful to investors in providing additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware, and investors should note, that this per tonne measure of performance can be affected by fluctuations in processing levels. This inherent limitation may be partially mitigated by using this measure in conjunction with production costs and other data prepared in accordance with IFRS. Minesite costs per tonne is not a standardized measure under IFRS and, as reported by the Company, may not be comparable to similarly labelled measures reported by other gold mining companies.
Forward-Looking Non-GAAP Measures
This news release also contains information as to estimated future total cash costs per ounce and AISC per ounce. The estimates are based upon the total cash costs per ounce and AISC per ounce that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at April 25, 2024 . Certain statements contained in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" under the provisions of Canadian provincial securities laws and are referred to herein as "forward-looking statements". All statements, other than statements of historical fact, that address circumstances, events, activities or developments that could, or may or will occur are forward-looking statements. When used in this news release, the words "achieve", "aim", "anticipate", "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, recovery rates, project timelines, drilling targets or results, life of mine estimates, total cash costs per ounce, AISC per ounce, minesite costs per tonne, other expenses and cash flows; the potential for additional gold production at the Company's sites; the estimated timing and conclusions of the Company's studies and evaluations; the methods by which ore will be extracted or processed; the Company's expansion plans at Detour Lake, Kittila, Meliadine Phase 2, the Amaruq underground project and the Odyssey project, including the timing, funding, completion and commissioning thereof and the commencement of production therefrom; the Company's plans at the Hope Bay project; statements concerning other expansion projects, recovery rates, mill throughput, optimization efforts and projected exploration, including costs and other estimates upon which such projections are based; timing and amounts of capital expenditures, other expenditures and other cash needs, and expectations as to the funding thereof; estimates of future mineral reserves, mineral resources, mineral production and sales; the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; anticipated cost inflation and its effect on the Company's costs and results; estimates of mineral reserves and mineral resources and the effect of drill results on future mineral reserves and mineral resources; the Company's ability to obtain the necessary permits and authorizations in connection with its proposed or current exploration, development and mining operations, including at Meliadine, and the anticipated timing thereof; 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, the term loan facility and other indebtedness; future dividend amounts, record dates and payment dates; plans with respect to the filing of a base shelf prospectus; plans with respect to renewing the NCIB; and anticipated trends with respect to the Company's operations, exploration and the funding thereof. Such statements reflect the Company's views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward-looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management's discussion and analysis ("MD&A") and the Company's Annual Information Form ("AIF") for the year ended December 31, 2023 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2023 ("Form 40-F") filed with the U.S. Securities and Exchange Commission (the "SEC") as well as: that there are no significant disruptions affecting operations; that production, permitting, development, expansion and the ramp-up of operations at each of Agnico Eagle's properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, foreign exchange rates and prices for key mining and construction inputs (including labour and electricity) will be consistent with Agnico Eagle's expectations; that Agnico Eagle's current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that seismic activity at the Company's operations at LaRonde, Goldex 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 measures in response to pandemics or other health emergencies or otherwise that, individually or in the aggregate, materially affect the Company's ability to operate its business or its productivity; and that measures taken relating to, or other effects of, pandemics or other health emergencies do not affect the Company's ability to obtain necessary supplies and deliver them to its mine sites. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; foreign exchange rate fluctuations; inflationary pressures; financing of additional capital requirements; cost of exploration and development programs; seismic activity at the Company's operations, including the LaRonde complex and Goldex complex; mining risks; community protests, including by Indigenous 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 current interest rate environment; the potential for major economies to encounter a slowdown in economic activity or a recession; the potential for increased conflict or hostilities in various regions, including Europe and the Middle East ; and the extent and manner to communicable diseases or outbreaks, and measures taken by governments, the Company or others to attempt to mitigate the spread thereof may directly or indirectly affect the Company. For a more detailed discussion of such risks and other factors that may affect the Company's ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see 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").
In 2019, the SEC's disclosure requirements and policies for mining properties were amended to more closely align with current industry and global regulatory practices and standards, including NI 43-101. However, Canadian issuers that report in the United States using the Multijurisdictional Disclosure System ("MJDS"), such as the Company, may still use NI 43-101 rather than the SEC disclosure requirements when using the SEC's MJDS registration statement and annual report forms. Accordingly, mineral reserve and mineral resource information contained in this news release may not be comparable to similar information disclosed by U.S. companies.
Investors are cautioned that while the SEC recognizes "measured mineral resources", "indicated mineral resources" and "inferred mineral resources", investors should not assume that any part or all of the mineral deposits in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility. Accordingly, investors are cautioned not to assume that any "measured mineral resources", "indicated mineral resources", or "inferred mineral resources" that the Company reports in this news release are or will be economically or legally mineable. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances.
Further, "inferred mineral resources" have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category.
The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained ounces. Mineral reserves are not reported as a subset of mineral resources.
Scientific and Technical Information
The scientific and technical information contained in this news release relating to Nunavut , Quebec and Finland operations has been approved by Dominique Girard, Eng., Executive Vice-President & Chief Operating Officer – Nunavut , Quebec & Europe ; relating to Ontario , Australia and Mexico operations has been approved by Natasha Vaz , Executive Vice-President & Chief Operating Officer – Ontario , Australia & Mexico ; relating to exploration has been approved by Guy Gosselin, Eng. and P.Geo., Executive Vice-President, Exploration; and relating to mineral reserves and mineral resources has been approved by Dyane Duquette , P.Geo., Vice-President, Mineral Resources Management, each of whom is a "Qualified Person" for the purposes of NI 43-101.
Additional Information
Additional information about each of the Company's material mineral projects as at December 31, 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); and the Detour Lake Operation, Ontario, Canada NI 43-101 Technical Report as at July 26, 2021 (October 15, 2021).
APPENDIX A – EXPLORATION DETAILS
Recent Selected Exploration Drill Results
Main Break zone and AK deposit at Macassa
Drill hole | Zone / deposit | From | To (metres) | Depth of below surface | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (capped)* |
58-1018 | Main Break | 295.7 | 300.8 | 2,150 | 3.3 | 33.6 | 33.6 |
KLAK-273 | AK | 159.1 | 164.4 | 342 | 5.0 | 11.8 | 11.8 |
*Results from the Macassa mine use a capping factor ranging from 68.6 g/t to 445.7 g/t gold depending on the zone. Results from AK use a capping factor of 70 g/t gold. |
Wesmeg and Wesmeg North deposits at Meliadine
Drill hole | Deposit | Lode / 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)* |
M23-3732B | Wesmeg | 625 | 397.3 | 403.8 | 349 | 5.8 | 13.5 | 10.2 |
ML300-10340-D11 | Wesmeg N | 972 | 211.9 | 215.5 | 401 | 3.6 | 11.1 | 11.1 |
and | Wesmeg | 625 | 336.0 | 343.5 | 467 | 7.4 | 6.1 | 6.1 |
*Results from Meliadine use a capping factor ranging from 20 g/t to 90 g/t gold depending on the zone. |
Sisar zone at Kittila
Drill hole | Zone / Area | From (metres) | To (metres) | Depth of | Estimated true width (metres) | Gold grade (g/t) |
ROD23-701C | Sisar Deep | 964.0 | 969.3 | 1,834 | 3.1 | 10.5 |
* Results from the Kittila mine are uncapped. |
EXPLORATION DRILL COLLAR COORDINATES
Drill hole | UTM East* | UTM North* | Elevation | Azimuth | Dip (degrees) | Length (metres) |
Odyssey mine | ||||||
MEX23-304W | 716873 | 5334696 | 316 | 176 | -72 | 1,652 |
MEX23-309 | 718682 | 5334767 | 307 | 160 | -48 | 1,767 |
MEX23-310Z | 718663 | 5334764 | 311 | 174 | -61 | 2,007 |
Detour Lake | ||||||
DLM23-775 | 586966 | 5541687 | 294 | 177 | -64 | 923 |
DLM24-805 | 586721 | 5541960 | 300 | 179 | -66 | 861 |
DLM24-818 | 587246 | 5541689 | 291 | 176 | -64 | 600 |
Drill hole | UTM East* | UTM North* | Elevation | Azimuth | Dip (degrees) | Length |
Macassa | ||||||
58-1018 | 568423 | 5331071 | -1,402 | 315 | 4 | 305 |
KLAK-273 | 570236 | 5331387 | 41 | 174 | -14 | 210 |
Meliadine | ||||||
M23-3732B | 540280 | 6988306 | 68 | 177 | -70 | 453 |
ML300-10340-D11 | 540340 | 6988412 | -215 | 161 | -38 | 420 |
Hope Bay | ||||||
HBM23-105 | 435438 | 7548956 | 26 | 240 | -58 | 912 |
HBM23-143 | 434835 | 7548158 | 33 | 79 | -55 | 855 |
HBM24-160 | 435552 | 7548440 | 26 | 244 | -58 | 943 |
HBM24-171 | 435494 | 7548411 | 27 | 241 | -56 | 795 |
HBM24-174 | 435538 | 7548358 | 27 | 248 | -57 | 817 |
Kittila | ||||||
ROD23701C | 2558678 | 7537862 | -791 | 91 | -65 | 1,173 |
*Coordinate Systems: NAD 83 UTM Zone 17N for Odyssey; NAD 1983 UTM Zone 17N for Detour Lake, Macassa and AK; NAD 1983 UTM Zone 14N for Meliadine; NAD 1983 UTM Zone 13N for Hope Bay; and Finnish Coordinate System KKJ Zone 2 for Kittila. |
APPENDIX B – FINANCIAL INFORMATION
AGNICO EAGLE MINES LIMITED | |||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||
(thousands of United States dollars, except where noted) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Net income - key line items: | |||
Revenue from mine operations: | |||
Quebec | |||
LaRonde mine | 143,617 | 102,220 | |
LaRonde Zone 5 mine | 42,615 | 29,522 | |
Canadian Malartic complex (ii) | 328,117 | 138,074 | |
Goldex complex | 72,384 | 68,063 | |
Ontario | |||
Detour Lake mine | 342,957 | 306,595 | |
Macassa mine | 139,393 | 117,859 | |
Nunavut | |||
Meliadine mine | 202,239 | 169,534 | |
Meadowbank complex | 249,385 | 209,813 | |
Australia | |||
Fosterville mine | 121,035 | 169,301 | |
Europe | |||
Kittila mine | 114,063 | 116,019 | |
Mexico | |||
Pinos Altos mine | 48,400 | 51,448 | |
La India mine | 25,618 | 31,213 | |
Revenues from mining operations | $ 1,829,823 | $ 1,509,661 | |
Production costs | 783,585 | 653,144 | |
Total operating margin (i) | 1,046,238 | 856,517 | |
Amortization of property, plant and mine development | 357,225 | 303,959 | |
Revaluation gain (iii) | — | (1,543,414) | |
Exploration, corporate and other | 199,965 | 150,473 | |
Income before income and mining taxes | 489,048 | 1,945,499 | |
Income and mining taxes expense | 141,856 | 128,608 | |
Net income for the period | $ 347,192 | $ 1,816,891 | |
Net income per share — basic | $ 0.70 | $ 3.87 | |
Net income per share — diluted | $ 0.70 | $ 3.86 | |
Cash flows: | |||
Cash provided by operating activities | $ 783,175 | $ 649,613 | |
Cash used in investing activities | $ (413,048) | $ (1,398,745) | |
Cash (used in) provided by financing activities | $ (183,034) | $ 836,433 | |
Realized prices: | |||
Gold (per ounce) | $ 2,062 | $ 1,892 | |
Silver (per ounce) | $ 23.80 | $ 22.95 | |
Zinc (per tonne) | $ 2,453 | $ 3,169 | |
Copper (per tonne) | $ 8,731 | $ 10,113 | |
AGNICO EAGLE MINES LIMITED | |||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||
(thousands of United States dollars, except where noted) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Payable production (iv) : | |||
Gold (ounces): | |||
Quebec | |||
LaRonde mine | 51,815 | 59,533 | |
LaRonde Zone 5 mine | 16,549 | 20,074 | |
Canadian Malartic complex (ii) | 186,906 | 80,685 | |
Goldex complex | 34,388 | 34,023 | |
Ontario | |||
Detour Lake mine | 150,751 | 161,857 | |
Macassa mine | 68,259 | 64,115 | |
Nunavut | |||
Meliadine mine | 95,725 | 90,467 | |
Meadowbank complex | 127,774 | 111,110 | |
Australia | |||
Fosterville mine | 56,569 | 86,558 | |
Europe | |||
Kittila mine | 54,581 | 63,692 | |
Mexico | |||
Pinos Altos mine | 24,725 | 24,134 | |
Creston Mascota mine | 28 | 244 | |
La India mine | 10,582 | 16,321 | |
Total gold (ounces): | 878,652 | 812,813 | |
Silver (thousands of ounces) | 615 | 545 | |
Zinc (tonnes) | 1,682 | 2,287 | |
Copper (tonnes) | 804 | 530 | |
AGNICO EAGLE MINES LIMITED | |||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||
(thousands of United States dollars, except where noted) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Payable metal sold (v) : | |||
Gold (ounces): | |||
Quebec | |||
LaRonde mine | 65,164 | 48,162 | |
LaRonde Zone 5 mine | 20,251 | 15,461 | |
Canadian Malartic complex (ii) | 159,548 | 71,809 | |
Goldex complex | 34,442 | 35,917 | |
Ontario | |||
Detour Lake mine | 167,008 | 163,294 | |
Macassa mine | 67,500 | 62,928 | |
Nunavut | |||
Meliadine mine | 98,540 | 89,586 | |
Meadowbank complex | 121,110 | 110,025 | |
Australia | |||
Fosterville mine | 58,000 | 89,000 | |
Europe | |||
Kittila mine | 55,000 | 60,720 | |
Mexico | |||
Pinos Altos mine | 20,300 | 24,236 | |
La India mine | 12,200 | 16,420 | |
Total gold (ounces): | 879,063 | 787,558 | |
Silver (thousands of ounces) | 604 | 552 | |
Zinc (tonnes) | 1,507 | 2,131 | |
Copper (tonnes) | 762 | 568 | |
AGNICO EAGLE MINES LIMITED | |||
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS | |||
(thousands of United States dollars, except where noted) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Total cash costs per ounce — co-product basis (vi) : | |||
Quebec | |||
LaRonde mine | $ 1,271 | $ 1,136 | |
LaRonde Zone 5 mine | 1,192 | 1,168 | |
Canadian Malartic complex (ii) | 860 | 808 | |
Goldex complex | 989 | 810 | |
Ontario | |||
Detour Lake mine | 875 | 775 | |
Macassa mine | 714 | 607 | |
Nunavut | |||
Meliadine mine | 944 | 940 | |
Meadowbank complex | 944 | 1,141 | |
Australia | |||
Fosterville mine | 540 | 398 | |
Europe | |||
Kittila mine | 1,071 | 807 | |
Mexico | |||
Pinos Altos mine | 1,633 | 1,347 | |
La India mine | 1,501 | 1,328 | |
Cash costs per ounce | $ 930 | $ 861 | |
Total cash costs per ounce — by-product basis (vi) : | |||
Quebec | |||
LaRonde mine | $ 1,028 | $ 892 | |
LaRonde Zone 5 mine | 1,180 | 1,154 | |
Canadian Malartic complex (ii) | 850 | 794 | |
Goldex complex | 948 | 810 | |
Ontario | |||
Detour Lake mine | 871 | 771 | |
Macassa mine | 711 | 604 | |
Nunavut | |||
Meliadine mine | 942 | 937 | |
Meadowbank complex | 937 | 1,134 | |
Australia | |||
Fosterville mine | 537 | 396 | |
Europe | |||
Kittila mine | 1,070 | 806 | |
Mexico | |||
Pinos Altos mine | 1,348 | 1,116 | |
La India mine | 1,453 | 1,308 | |
Cash costs per ounce | $ 901 | $ 832 | |
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 Reconciliation of non-GAAP Financial Performance Measures - Operating Margin and Note Regarding Certain Measures of Performance for more information on the Company's calculation and 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. | |||
(iii) Revaluation gain on the 50% interest the Company owned in Canadian Malartic complex prior to the Yamana Transaction. | |||
(iv) 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. | |||
(v) 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. | |||
(vi) The total cash costs per ounce is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See Reconciliation of Non-GAAP Financial Performance Measures — Total Cash Costs per Ounce and Minesite Costs per Tonne for more information on the Company's calculation and use of total cash cost per ounce. | |||
AGNICO EAGLE MINES LIMITED | |||
CONDENSED INTERIM CONSOLIDATED BALANCE SHEETS | |||
(thousands of United States dollars, except share amounts, IFRS basis) | |||
(Unaudited) | |||
As at | As at | ||
March 31, 2024 | December 31, 2023 | ||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 524,625 | $ 338,648 | |
Inventories | 1,349,736 | 1,418,941 | |
Income taxes recoverable | 28,774 | 27,602 | |
Fair value of derivative financial instruments | 10,166 | 50,786 | |
Other current assets | 331,855 | 355,175 | |
Total current assets | 2,245,156 | 2,191,152 | |
Non-current assets: | |||
Goodwill | 4,157,672 | 4,157,672 | |
Property, plant and mine development | 21,194,013 | 21,221,905 | |
Investments | 389,170 | 345,257 | |
Deferred income and mining tax asset | 51,602 | 53,796 | |
Other assets | 764,828 | 715,167 | |
Total assets | $ 28,802,441 | $ 28,684,949 | |
LIABILITIES | |||
Current liabilities: | |||
Accounts payable and accrued liabilities | $ 696,912 | $ 750,380 | |
Share based liabilities | 14,445 | 24,316 | |
Interest payable | 19,342 | 14,226 | |
Income taxes payable | 89,495 | 81,222 | |
Current portion of long-term debt | 100,000 | 100,000 | |
Reclamation provision | 34,553 | 24,266 | |
Lease obligations | 41,694 | 46,394 | |
Fair value of derivative financial instruments | 19,087 | 7,222 | |
Total current liabilities | 1,015,528 | 1,048,026 | |
Non-current liabilities: | |||
Long-term debt | 1,741,017 | 1,743,086 | |
Reclamation provision | 1,006,090 | 1,049,238 | |
Lease obligations | 109,038 | 115,154 | |
Share based liabilities | 4,387 | 11,153 | |
Deferred income and mining tax liabilities | 4,985,576 | 4,973,271 | |
Other liabilities | 298,435 | 322,106 | |
Total liabilities | 9,160,071 | 9,262,034 | |
EQUITY | |||
Common shares: | |||
Outstanding - 498,854,263 common shares issued, less 661,248 shares held in trust | 18,398,184 | 18,334,869 | |
Stock options | 204,621 | 201,755 | |
Contributed surplus | 16,059 | 22,074 | |
Retained earnings | 1,110,047 | 963,172 | |
Other reserves | (86,541) | (98,955) | |
Total equity | 19,642,370 | 19,422,915 | |
Total liabilities and equity | $ 28,802,441 | $ 28,684,949 | |
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 March 31, | |||
2024 | 2023 | ||
REVENUES | |||
Revenues from mining operations | $ 1,829,823 | $ 1,509,661 | |
COSTS, INCOME AND EXPENSES | |||
Production (i) | 783,585 | 653,144 | |
Exploration and corporate development | 51,206 | 53,768 | |
Amortization of property, plant and mine development | 357,225 | 303,959 | |
General and administrative | 48,117 | 48,208 | |
Finance costs | 36,265 | 23,448 | |
Loss (gain) on derivative financial instruments | 45,935 | (6,539) | |
Foreign currency translation (gain) loss | (4,547) | 220 | |
Care and maintenance | 11,042 | 11,245 | |
Revaluation gain (ii) | — | (1,543,414) | |
Other expenses | 11,947 | 20,123 | |
Income before income and mining taxes | 489,048 | 1,945,499 | |
Income and mining taxes expense | 141,856 | 128,608 | |
Net income for the period | $ 347,192 | $ 1,816,891 | |
Net income per share - basic | $ 0.70 | $ 3.87 | |
Net income per share - diluted | $ 0.70 | $ 3.86 | |
Adjusted net income per share - basic (iii) | $ 0.76 | $ 0.58 | |
Adjusted net income per share - diluted (iii) | $ 0.76 | $ 0.57 | |
Weighted average number of common shares outstanding (in thousands): | |||
Basic | 497,619 | 468,968 | |
Diluted | 498,807 | 470,455 | |
Notes: | |||
(i) Exclusive of amortization, which is shown separately. | |||
(ii) Revaluation gain on the 50% interest previously owned in the Canadian Malartic complex prior to the Yamana Transaction. | |||
(iii) Adjusted net income per share is not a recognized measure under IFRS and this data may not be comparable to data reported by other companies. See Note Regarding Certain Measures of Performance and Reconciliation of Non-GAAP Financial Performance Measures in this News Release for a discussion of the composition and usefulness of this measure and a reconciliation to the nearest IFRS measure. | |||
AGNICO EAGLE MINES LIMITED | |||
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(thousands of United States dollars, IFRS basis) | |||
(Unaudited) | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
OPERATING ACTIVITIES | |||
Net income for the period | $ 347,192 | $ 1,816,891 | |
Add (deduct) adjusting items: | |||
Amortization of property, plant and mine development | 357,225 | 303,959 | |
Revaluation gain (i) | — | (1,543,414) | |
Deferred income and mining taxes | 12,924 | 36,103 | |
Unrealized loss (gain) on currency and commodity derivatives | 52,484 | (15,888) | |
Unrealized gain on warrants | (6,877) | (4,663) | |
Stock-based compensation | 18,857 | 13,147 | |
Foreign currency translation (gain) loss | (4,547) | 220 | |
Other | (190) | 2,444 | |
Changes in non-cash working capital balances: | |||
Trade receivables | 1,208 | 8,395 | |
Income taxes | 376 | 23,977 | |
Inventories | 28,172 | 2,068 | |
Other current assets | 25,410 | 10,995 | |
Accounts payable and accrued liabilities | (53,990) | (7,269) | |
Interest payable | 4,931 | 2,648 | |
Cash provided by operating activities | 783,175 | 649,613 | |
INVESTING ACTIVITIES | |||
Additions to property, plant and mine development | (387,587) | (384,934) | |
Yamana transaction, net of cash and cash equivalents | — | (1,000,617) | |
Contributions for acquisition of mineral assets | (3,924) | — | |
Purchases of equity securities and other investments | (24,007) | (14,737) | |
Other investing activities | 2,470 | 1,543 | |
Cash used in investing activities | (413,048) | (1,398,745) | |
FINANCING ACTIVITIES | |||
Proceeds from Credit Facility | 600,000 | 1,000,000 | |
Repayment of Credit Facility | (600,000) | — | |
Long-term debt financing costs | (3,544) | — | |
Repayment of lease obligations | (13,015) | (9,748) | |
Dividends paid | (157,260) | (156,163) | |
Repurchase of common shares | (26,041) | (14,564) | |
Proceeds on exercise of stock options | 7,378 | 10,302 | |
Common shares issued | 9,448 | 6,606 | |
Cash (used in) provided by financing activities | (183,034) | 836,433 | |
Effect of exchange rate changes on cash and cash equivalents | (1,116) | (1,281) | |
Net increase in cash and cash equivalents during the period | 185,977 | 86,020 | |
Cash and cash equivalents, beginning of period | 338,648 | 658,625 | |
Cash and cash equivalents, end of period | $ 524,625 | $ 744,645 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Interest paid | $ 25,252 | $ 13,051 | |
Income and mining taxes paid | $ 130,777 | $ 64,937 | |
Note: |
(i) Revaluation gain on the 50% interest the Company previously owned in the Canadian Malartic complex prior to the Yamana Transaction. |
AGNICO EAGLE MINES LIMITED | ||||||
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES | ||||||
(thousands of United States dollars, except where noted) | ||||||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures total cash costs per ounce and minesite costs per tonne. | ||||||
The following tables set out a reconciliation of total cash costs per ounce (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 consolidated statements of (loss) income in accordance with IFRS. | ||||||
Total Production Costs by Mine | ||||||
Three Months Ended March 31, | ||||||
(thousands of United States dollars) | 2024 | 2023 | ||||
Quebec | ||||||
LaRonde mine | $ 75,556 | $ 39,707 | ||||
LaRonde Zone 5 mine | 19,022 | 22,224 | ||||
LaRonde complex | 94,578 | 61,931 | ||||
Canadian Malartic complex (i) | 126,576 | 57,291 | ||||
Goldex complex | 33,182 | 27,835 | ||||
Ontario | ||||||
Detour Lake mine | 131,905 | 114,022 | ||||
Macassa mine | 47,648 | 37,959 | ||||
Nunavut | ||||||
Meliadine mine | 93,451 | 81,194 | ||||
Meadowbank complex | 114,162 | 130,004 | ||||
Australia | ||||||
Fosterville mine | 33,654 | 36,599 | ||||
Europe | ||||||
Kittila mine | 59,038 | 53,295 | ||||
Mexico | ||||||
Pinos Altos mine | 33,407 | 32,922 | ||||
La India mine | 15,984 | 20,092 | ||||
Production costs per the consolidated statements of income | $ 783,585 | $ 653,144 | ||||
Reconciliation of Production Costs to Total Cash Costs per Ounce by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne by Mine | ||||||
( thousands of United States dollars, except as noted) | ||||||
LaRonde mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 51,815 | 59,533 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 75,556 | $ 1,458 | $ 39,707 | $ 667 | ||
Inventory adjustments (ii) | (14,711) | (284) | 22,505 | 378 | ||
Realized gains and losses on hedges of production costs | 19 | — | 1,078 | 18 | ||
Other adjustments (iv) | 4,993 | 97 | 4,348 | 73 | ||
Total cash costs (co-product basis) | $ 65,857 | $ 1,271 | $ 67,638 | $ 1,136 | ||
By-product metal revenues | (12,590) | (243) | (14,532) | (244) | ||
Total cash costs (by-product basis) | $ 53,267 | $ 1,028 | $ 53,106 | $ 892 | ||
LaRonde mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 413 | 389 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 75,556 | $ 183 | $ 39,707 | $ 102 | ||
Production costs (C$) | C$ 102,025 | C$ 247 | C$ 53,573 | C$ 138 | ||
Inventory adjustments (C$) (iii) | (20,314) | (49) | 29,723 | 76 | ||
Other adjustments (C$) (iv) | (336) | (1) | (3,141) | (8) | ||
Minesite costs (C$) | C$ 81,375 | C$ 197 | C$ 80,155 | C$ 206 | ||
LaRonde Zone 5 mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 16,549 | 20,074 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 19,022 | $ 1,149 | $ 22,224 | $ 1,107 | ||
Inventory adjustments (ii) | 320 | 20 | 523 | 26 | ||
Realized gains and losses on hedges of production costs | 6 | — | 359 | 18 | ||
Other adjustments (iv) | 370 | 23 | 336 | 17 | ||
Total cash costs (co-product basis) | $ 19,718 | $ 1,192 | $ 23,442 | $ 1,168 | ||
By-product metal revenues | (187) | (12) | (275) | (14) | ||
Total cash costs (by-product basis) | $ 19,531 | $ 1,180 | $ 23,167 | $ 1,154 | ||
LaRonde Zone 5 mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 267 | 318 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 19,022 | $ 71 | $ 22,224 | $ 70 | ||
Production costs (C$) | C$ 25,514 | C$ 95 | C$ 29,988 | C$ 94 | ||
Inventory adjustments (C$) (iii) | 432 | 2 | 738 | 3 | ||
Minesite costs (C$) | C$ 25,946 | C$ 97 | C$ 30,726 | C$ 97 | ||
LaRonde complex (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 68,364 | 79,607 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 94,578 | $ 1,383 | $ 61,931 | $ 778 | ||
Inventory adjustments (ii) | (14,391) | (210) | 23,028 | 289 | ||
Realized gains and losses on hedges of production costs | 25 | — | 1,437 | 18 | ||
Other adjustments (iv) | 5,363 | 79 | 4,684 | 59 | ||
Total cash costs (co-product basis) | $ 85,575 | $ 1,252 | $ 91,080 | $ 1,144 | ||
By-product metal revenues | (12,777) | (187) | (14,807) | (186) | ||
Total cash costs (by-product basis) | $ 72,798 | $ 1,065 | $ 76,273 | $ 958 | ||
LaRonde complex (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 680 | 707 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 94,578 | $ 139 | $ 61,931 | $ 88 | ||
Production costs (C$) | C$ 127,539 | C$ 187 | C$ 83,561 | C$ 118 | ||
Inventory adjustments (C$) (iii) | (19,882) | (29) | 30,461 | 43 | ||
Other adjustments (C$) (iv) | (336) | — | (3,141) | (4) | ||
Minesite costs (C$) | C$ 107,321 | C$ 158 | C$ 110,881 | C$ 157 | ||
Canadian Malartic complex (per ounce) (i) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 186,906 | 80,685 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 126,576 | $ 677 | $ 57,291 | $ 710 | ||
Inventory adjustments (ii) | 14,707 | 79 | 495 | 6 | ||
Realized gains and losses on hedges of production costs | 52 | — | — | — | ||
In-kind royalties and other adjustments (iv) | 19,490 | 104 | 7,382 | 92 | ||
Total cash costs (co-product basis) | $ 160,825 | $ 860 | $ 65,168 | $ 808 | ||
By-product metal revenues | (1,952) | (10) | (1,138) | (14) | ||
Total cash costs (by-product basis) | $ 158,873 | $ 850 | $ 64,030 | $ 794 | ||
Canadian Malartic complex (per tonne) (i) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 5,173 | 2,262 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 126,576 | $ 24 | $ 57,291 | $ 25 | ||
Production costs (C$) | C$ 170,853 | C$ 33 | C$ 76,665 | C$ 34 | ||
Inventory adjustments (C$) (iii) | 20,002 | 4 | 740 | — | ||
In-kind royalties and other adjustments (C$) (iv) | 25,637 | 5 | 9,825 | 5 | ||
Minesite costs (C$) | C$ 216,492 | C$ 42 | C$ 87,230 | C$ 39 | ||
Goldex complex (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 34,388 | 34,023 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 33,182 | $ 965 | $ 27,835 | $ 818 | ||
Inventory adjustments (ii) | 457 | 13 | (1,037) | (30) | ||
Realized gains and losses on hedges of production costs | 11 | — | 707 | 20 | ||
Other adjustments (iv) | 370 | 11 | 62 | 2 | ||
Total cash costs (co-product basis) | $ 34,020 | $ 989 | $ 27,567 | $ 810 | ||
By-product metal revenues | (1,417) | (41) | (14) | — | ||
Total cash costs (by-product basis) | $ 32,603 | $ 948 | $ 27,553 | $ 810 | ||
Goldex complex (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 760 | 698 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 33,182 | $ 44 | $ 27,835 | $ 40 | ||
Production costs (C$) | C$ 44,745 | C$ 59 | C$ 37,627 | C$ 54 | ||
Inventory adjustments (C$) (iii) | 649 | 1 | (1,390) | (2) | ||
Minesite costs (C$) | C$ 45,394 | C$ 60 | C$ 36,237 | C$ 52 | ||
Detour Lake mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 150,751 | 161,857 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 131,905 | $ 875 | $ 114,022 | $ 704 | ||
Inventory adjustments (ii) | (8,186) | (54) | 306 | 2 | ||
Realized gains and losses on hedges of production costs | 58 | — | 3,554 | 22 | ||
In-kind royalties and other adjustments (iv) | 8,144 | 54 | 7,575 | 47 | ||
Total cash costs (co-product basis) | $ 131,921 | $ 875 | $ 125,457 | $ 775 | ||
By-product metal revenues | (580) | (4) | (682) | (4) | ||
Total cash costs (by-product basis) | $ 131,341 | $ 871 | $ 124,775 | $ 771 | ||
Detour Lake mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 6,502 | 6,397 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 131,905 | $ 20 | $ 114,022 | $ 18 | ||
Production costs (C$) | C$ 178,209 | C$ 27 | C$ 153,908 | C$ 24 | ||
Inventory adjustments (C$) (iii) | (10,940) | (2) | 515 | — | ||
In-kind royalties and other adjustments (C$) (iv) | 8,876 | 2 | 8,765 | 2 | ||
Minesite costs (C$) | C$ 176,145 | C$ 27 | C$ 163,188 | C$ 26 | ||
Macassa mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 68,259 | 64,115 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 47,648 | $ 698 | $ 37,959 | $ 592 | ||
Inventory adjustments (ii) | (1,089) | (16) | (1,295) | (20) | ||
Realized gains and losses on hedges of production costs | 23 | — | 1,137 | 18 | ||
In-kind royalties and other adjustments (iv) | 2,157 | 32 | 1,144 | 17 | ||
Total cash costs (co-product basis) | $ 48,739 | $ 714 | $ 38,945 | $ 607 | ||
By-product metal revenues | (220) | (3) | (208) | (3) | ||
Total cash costs (by-product basis) | $ 48,519 | $ 711 | $ 38,737 | $ 604 | ||
Macassa mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 134 | 87 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 47,648 | $ 356 | $ 37,959 | $ 436 | ||
Production costs (C$) | C$ 64,672 | C$ 483 | C$ 51,242 | C$ 589 | ||
Inventory adjustments (C$) (iii) | (1,416) | (11) | (1,717) | (21) | ||
In-kind royalties and other adjustments (C$) (iv) | 2,815 | 21 | 1,516 | 17 | ||
Minesite costs (C$) | C$ 66,071 | C$ 493 | C$ 51,041 | C$ 585 | ||
Meliadine mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 95,725 | 90,467 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 93,451 | $ 976 | $ 81,194 | $ 897 | ||
Inventory adjustments (ii) | (3,300) | (34) | 3,624 | 40 | ||
Realized gains and losses on hedges of production costs | 280 | 3 | 88 | 1 | ||
Other adjustments (iv) | (58) | (1) | 105 | 2 | ||
Total cash costs (co-product basis) | $ 90,373 | $ 944 | $ 85,011 | $ 940 | ||
By-product metal revenues | (235) | (2) | (200) | (3) | ||
Total cash costs (by-product basis) | $ 90,138 | $ 942 | $ 84,811 | $ 937 | ||
Meliadine mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 496 | 476 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 93,451 | $ 188 | $ 81,194 | $ 170 | ||
Production costs (C$) | C$ 125,926 | C$ 254 | C$ 108,881 | C$ 228 | ||
Inventory adjustments (C$) (iii) | (4,395) | (9) | 5,050 | 11 | ||
Minesite costs (C$) | C$ 121,531 | C$ 245 | C$ 113,931 | C$ 239 | ||
Meadowbank complex (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 127,774 | 111,110 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 114,162 | $ 893 | $ 130,004 | $ 1,170 | ||
Inventory adjustments (ii) | 5,905 | 47 | (1,654) | (15) | ||
Realized gains and losses on hedges of production costs | 546 | 4 | (1,499) | (13) | ||
Other adjustments (iv) | (59) | — | (55) | 1 | ||
Total cash costs (co-product basis) | $ 120,554 | $ 944 | $ 126,796 | $ 1,141 | ||
By-product metal revenues | (866) | (7) | (825) | (7) | ||
Total cash costs (by-product basis) | $ 119,688 | $ 937 | $ 125,971 | $ 1,134 | ||
Meadowbank complex (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 1,071 | 983 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 114,162 | $ 107 | $ 130,004 | $ 132 | ||
Production costs (C$) | C$ 153,594 | C$ 143 | C$ 172,978 | C$ 176 | ||
Inventory adjustments (C$) (iii) | 8,002 | 8 | (2,226) | (2) | ||
Minesite costs (C$) | C$ 161,596 | C$ 151 | C$ 170,752 | C$ 174 | ||
Fosterville mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 56,569 | 86,558 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 33,654 | $ 595 | $ 36,599 | $ 423 | ||
Inventory adjustments (ii) | (3,136) | (55) | (2,364) | (27) | ||
Realized gains and losses on hedges of production costs | 18 | — | 188 | 2 | ||
Other adjustments (iv) | 17 | — | 46 | — | ||
Total cash costs (co-product basis) | $ 30,553 | $ 540 | $ 34,469 | $ 398 | ||
By-product metal revenues | (160) | (3) | (157) | (2) | ||
Total cash costs (by-product basis) | $ 30,393 | $ 537 | $ 34,312 | $ 396 | ||
Fosterville mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 172 | 148 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 33,654 | $ 196 | $ 36,599 | $ 248 | ||
Production costs (A$) | A$ 51,849 | A$ 301 | A$ 54,182 | A$ 367 | ||
Inventory adjustments (A$) (ii) | (4,630) | (26) | (3,601) | (24) | ||
Minesite costs (A$) | A$ 47,219 | A$ 275 | A$ 50,581 | A$ 343 | ||
Kittila mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 54,581 | 63,692 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 59,038 | $ 1,082 | $ 53,295 | $ 837 | ||
Inventory adjustments (ii) | (495) | (9) | (40) | (1) | ||
Realized gains and losses on hedges of production costs | (11) | — | (633) | (10) | ||
Other adjustments (iv) | (68) | (2) | (1,223) | (19) | ||
Total cash costs (co-product basis) | $ 58,464 | $ 1,071 | $ 51,399 | $ 807 | ||
By-product metal revenues | (89) | (1) | (69) | (1) | ||
Total cash costs (by-product basis) | $ 58,375 | $ 1,070 | $ 51,330 | $ 806 | ||
Kittila mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore milled (thousands of tonnes) | 482 | 496 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 59,038 | $ 122 | $ 53,295 | $ 107 | ||
Production costs (€) | € 54,479 | € 113 | € 48,751 | € 98 | ||
Inventory adjustments (€) (iii) | (370) | (1) | (114) | — | ||
Minesite costs (€) | € 54,109 | € 112 | € 48,637 | € 98 | ||
Pinos Altos mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 24,725 | 24,134 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 33,407 | $ 1,351 | $ 32,922 | $ 1,364 | ||
Inventory adjustments (ii) | 6,655 | 269 | (248) | (10) | ||
Realized gains and losses on hedges of production costs | — | — | (453) | (19) | ||
Other adjustments (iv) | 318 | 13 | 292 | 12 | ||
Total cash costs (co-product basis) | $ 40,380 | $ 1,633 | $ 32,513 | $ 1,347 | ||
By-product metal revenues | (7,050) | (285) | (5,574) | (231) | ||
Total cash costs (by-product basis) | $ 33,330 | $ 1,348 | $ 26,939 | $ 1,116 | ||
Pinos Altos mine (per tonne) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore processed (thousands of tonnes) | 426 | 364 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 33,407 | $ 78 | $ 32,922 | $ 90 | ||
Inventory adjustments (iii) | 6,655 | 16 | (248) | — | ||
Minesite costs | $ 40,062 | $ 94 | $ 32,674 | $ 90 | ||
La India mine (per ounce) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Gold production (ounces) | 10,582 | 16,321 | ||||
(thousands) | ($ per ounce) | (thousands) | ($ per ounce) | |||
Production costs | $ 15,984 | $ 1,510 | $ 20,092 | $ 1,231 | ||
Inventory adjustments (ii) | (234) | (22) | 1,448 | 89 | ||
Other adjustments (iv) | 133 | 13 | 129 | 8 | ||
Total cash costs (co-product basis) | $ 15,883 | $ 1,501 | $ 21,669 | $ 1,328 | ||
By-product metal revenues | (502) | (48) | (315) | (20) | ||
Total cash costs (by-product basis) | $ 15,381 | $ 1,453 | $ 21,354 | $ 1,308 | ||
La India mine (per tonne) (v) | Three Months Ended March 31, | |||||
2024 | 2023 | |||||
Tonnes of ore processed (thousands of tonnes) | — | 660 | ||||
(thousands) | ($ per tonne) | (thousands) | ($ per tonne) | |||
Production costs | $ 15,984 | $ — | $ 20,092 | $ 30 | ||
Inventory adjustments (iii) | (15,984) | — | 1,448 | 3 | ||
Minesite costs | $ — | $ — | $ 21,540 | $ 33 | ||
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 are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. | ||||||
(iii) This inventory adjustment reflects production costs associated with the portion of production still in inventory. | ||||||
(iv) 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 and smelting, refining, and marketing charges to production costs. | ||||||
(v) The La India mine's cost calculations per tonne for the three months ended March 31, 2024 exclude approximately $16.0 million of production costs incurred during the three months ended March 31, 2024 following the cessation of mining activities at the La India open pit during the fourth quarter of 2023. | ||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce (iv) and All-in Sustaining Costs per Ounce (iv) | |||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measure all-in sustaining costs per ounce. | |||
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 for the three months ended March 31, 2024 and March 31, 2023 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 March 31, | |||
(United States dollars per ounce, except where noted) | 2024 | 2023 | |
Production costs per the consolidated statements of income (thousands of United States dollars) | $ 783,585 | $ 653,144 | |
Gold production (ounces) | 878,652 | 812,813 | |
Production costs per ounce | $ 892 | $ 804 | |
Adjustments: | |||
Inventory adjustments (i) | (4) | 30 | |
Realized gains and losses on hedges of production costs | 1 | 6 | |
Other (ii) | 41 | 21 | |
Total cash costs per ounce (co-product basis) (iii) | $ 930 | $ 861 | |
By-product metal revenues | (29) | (29) | |
Total cash costs per ounce (by-product basis) (iii) | $ 901 | $ 832 | |
Adjustments: | |||
Sustaining capital expenditures (including capitalized exploration) | 216 | 215 | |
General and administrative expenses (including stock option expense) | 55 | 59 | |
Non-cash reclamation provision and sustaining leases (iv) | 18 | 19 | |
All-in sustaining costs per ounce (by-product basis) | $ 1,190 | $ 1,125 | |
By-product metal revenues | 29 | 29 | |
All-in sustaining costs per ounce (co-product basis) | $ 1,219 | $ 1,154 | |
Notes: | |||
(i) Under the Company's revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total cash costs per ounce are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue. | |||
(ii) Other adjustments consist of in-kind royalties, smelting, refining and marketing charges to production costs. | |||
(iii) The total cash costs per ounce is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers Note Regarding Certain Measures of Performance for more information on the Company's use of total cash cost per ounce. | |||
(iv) Sustaining leases are lease payments related to sustaining assets. | |||
Reconciliation of Sustaining Capital Expenditures (i) and Development Capital Expenditures (i) to the Consolidated Statements of Cash Flows | |||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures sustaining capital expenditures and development capital expenditures. | |||
The following tables set out a reconciliation of sustaining capital expenditures and development capital expenditures to the additions to property, plant and mine development per the condensed interim consolidated statements of cash flows for the three months ended March 31, 2024 and March 31, 2023. | |||
Three Months Ended March 31, | |||
2024 | 2023 | ||
Sustaining capital expenditures (i)(ii) | $ 190,607 | $ 174,632 | |
Development capital expenditures (i)(ii) | 181,411 | 167,103 | |
Total Capital Expenditures | $ 372,018 | $ 341,735 | |
Working capital adjustments | 15,569 | 43,199 | |
Additions to property, plant and mine development per the consolidated statements of cash flows | $ 387,587 | $ 384,934 | |
Notes: | |||
(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 Regarding Certain Measures of Performance for more information on the Company's use of the measures sustaining capital expenditures and development capital expenditures. | |||
(ii) Sustaining capital expenditures and development capital expenditures include capitalized exploration. | |||
Reconciliation of Long-Term Debt to Net Debt (i) | |||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measure net debt. | |||
The following tables set out a reconciliation of long-term debt per the condensed interim consolidated balance sheets to net debt as at March 31, 2024 and December 31, 2023. | |||
As at | As at | ||
March 31, 2024 | December 31, 2023 | ||
Current portion of long-term debt per the condensed interim consolidated balance sheets | $ 100,000 | $ 100,000 | |
Non-current portion of long-term debt | 1,741,017 | 1,743,086 | |
Long-term debt | $ 1,841,017 | $ 1,843,086 | |
Adjustment: | |||
Cash and cash equivalents | $ (524,625) | $ (338,648) | |
Net Debt (i) | $ 1,316,392 | $ 1,504,438 | |
Note: | |||
(i) Net debt is not a recognized measure under IFRS and this data may not be comparable to other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of net debt. | |||
Reconciliation of Adjusted Net Income (i) to Net Income | |||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measure adjusted net income. | |||
The following tables set out a reconciliation of net income per the condensed interim consolidated statements of income to adjusted net income for the three months ended March 31, 2024 and March 31, 2023. | |||
(thousands of United States dollars) | Three Months Ended March 31, | ||
2024 | 2023 | ||
Net income for the period - basic | $ 347,192 | $ 1,816,891 | |
Dilutive impact of cash settling LTIP | 364 | (1,776) | |
Net income for the period - diluted | $ 347,556 | $ 1,815,115 | |
Foreign currency translation (gain) loss | (4,547) | 220 | |
Loss (gain) on derivative financial instruments | 45,935 | (6,539) | |
Environmental remediation | 1,799 | (557) | |
Transaction costs related to acquisitions | — | 15,238 | |
Revaluation gain on Yamana Transaction | — | (1,543,414) | |
Net loss on disposal of property, plant and equipment | 3,547 | 2,542 | |
Income and mining taxes adjustments (ii) | (16,455) | (13,102) | |
Adjusted net income (i) for the period - basic | $ 377,471 | $ 271,279 | |
Adjusted net income (i) for the period - diluted | $ 377,835 | $ 269,503 | |
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 Regarding Certain Measures of Performance for more information on the Company's use of adjusted net income. | |||
(ii) Income and mining taxes adjustments reflect items such as foreign currency translation recorded to the income and mining taxes expense, the impact of income and mining taxes on adjusted items, recognition of previously unrecognized capital losses, the result of income and mining taxes audits, impact of tax law changes and adjustments to prior period tax filings. | |||
EBITDA (i) and Adjusted EBITDA (i) | |||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures EBITDA and adjusted EBITDA. | |||
The following tables set out a reconciliation of net income per the condensed interim consolidated statements of income to EBITDA and adjusted EBITDA for the three months ended March 31, 2024 and March 31, 2023. | |||
Three Months Ended March 31, | |||
(thousands of United States dollars) | 2024 | 2023 | |
Net income for the period | $ 347,192 | $ 1,816,891 | |
Finance costs | 36,265 | 23,448 | |
Amortization of property, plant and mine development | 357,225 | 303,959 | |
Income and mining tax expense | 141,856 | 128,608 | |
EBITDA (i) | 882,538 | 2,272,906 | |
Foreign currency translation (gain) loss | (4,547) | 220 | |
Loss (gain) on derivative financial instruments | 45,935 | (6,539) | |
Environmental remediation | 1,799 | (557) | |
Transaction costs related to acquisitions | — | 15,238 | |
Revaluation gain on Yamana Transaction | — | (1,543,414) | |
Net loss on disposal of property, plant and equipment | 3,547 | 2,542 | |
Adjusted EBITDA (i) | $ 929,272 | $ 740,396 | |
Note: | |||
(i) EBITDA and adjusted EBITDA are not recognized measures under IFRS and this data may not be comparable to other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of EBITDA and adjusted EBITDA. | |||
Free Cash Flow (i) and Free Cash Flow Before Changes in Non-Cash Working Capital Balances (i) | |||
Refer to Note Regarding Certain Measures of Performance in this news release for details on the composition, usefulness and other information regarding the Company's use of the non-GAAP measures free cash flow, free cash flow before changes in non-cash components of working capital and cash provided by operating activities before working capital adjustments. | |||
The following tables set out a reconciliation of cash provided by operating activities per the condensed interim consolidated statements of cash flows to free cash flow and free cash flow before changes in non-cash working capital balances and to cash provided by operating activities before changes in non-cash working capital balances for the three months ended March 31, 2024 and March 31, 2023. | |||
Three Months Ended March 31, | |||
(thousands of United States dollars) | 2024 | 2023 | |
Cash provided by operating activities | $ 783,175 | $ 649,613 | |
Additions to property, plant and mine development | (387,587) | (384,934) | |
Free Cash Flow (i) | 395,588 | 264,679 | |
Changes in trade receivables | $ (1,208) | $ (8,395) | |
Changes in income taxes | (376) | (23,977) | |
Changes in inventory | (28,172) | (2,068) | |
Changes in other current assets | (25,410) | (10,995) | |
Changes in accounts payable and accrued liabilities | 53,990 | 7,269 | |
Changes in interest payable | (4,931) | (2,648) | |
Free cash flow before changes in non-cash working capital balances (i) | $ 389,481 | $ 223,865 | |
Additions to property, plant and mine development | 387,587 | 384,934 | |
Cash provided by operating activities before changes in non-cash working capital balances (ii) | $ 777,068 | $ 608,799 | |
Cash provided by operating activities per share - basic | $ 1.57 | $ 1.39 | |
Cash provided by operating activities before changes in non-cash working capital balances per share - basic (ii) | $ 1.56 | $ 1.30 | |
Free cash flow per share - basic (i) | $ 0.79 | $ 0.56 | |
Free cash flow before changes in non-cash working capital balances - basic (i) | $ 0.78 | $ 0.48 | |
Notes: | |||
(i) Free cash flow and free cash flow before changes in non-cash working capital balances are not recognized measures under IFRS and this data may not be comparable to other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of free cash flow and free cash flow before changes in non-cash working capital balances | |||
(ii) Cash provided by operating activities before changes in non-cash working capital balances is not a recognized measure under IFRS and this data may not be comparable to other gold producers. See Note Regarding Certain Measures of Performance for more information on the Company's use of cash provided by operating activities before changes in non-cash working capital balances | |||
View original content: SOURCE Agnico Eagle Mines Limited
View original content: http://www.newswire.ca/en/releases/archive/April2024/25/c1394.html
News Provided by Canada Newswire via QuoteMedia
Falco Resources
Overview
Falco Resources (TSXV:FPC) is a Canadian company focused on developing gold and base metal projects in the Rouyn-Noranda region of Quebec. Rouyn-Noranda is an established mining camp with a long history of exploration and development. The Noranda mining camp has historically produced 19 million ounces (Moz) of gold and 2.9 billion pounds (Blbs) of copper, and yet it is still under-explored for gold.
Falcon’s principal property, Horne 5 project, holds 67,000 acres or nearly 67 percent of the total area of the entire mining camp and is located under the former Horne mine which produced 11.6 Moz of gold and 2.5 Blbs of copper. The 2021 feasibility study on the Horne 5 project suggests strong project economics with a total mine life of 15 years, after-tax NPV at 5 percent of US$761 million, and a payback period of 4.8 years, assuming gold prices at $1,600/oz. At the current gold prices of over $2,300/oz, the project economics will be even better.
Recent news flow including the operating lease and indemnity agreement (OLIA) with Glencore (LON:GLEN) and the Horne 5 project’s environmental impact assessment (EIA) admissibility are significant milestones in the advancement of the project towards construction. Falco is now aiming to proceed with the next steps related to obtaining government permits and financing for its Horne 5 project.
Falco Resources operating license and indemnity agreement (OLIA) with Glencore Canada will enable Falco to utilize a portion of Glencore's lands. The agreement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Additionally, a parallel strategic committee will be formed. Glencore will nominate one representative to join Falco's board of directors.
The successful completion of the OLIA, coupled with life-of-mine copper-zinc concentrate offtake agreements with Glencore, positions Falco to advance its Horne 5 project towards construction. The company is advancing with the permitting and financing processes for the project.
Company Highlights
- Falco Resources is a Canadian explorer of base and precious metals focused on developing its mineral properties in the Rouyn-Noranda region in Quebec, Canada.
- The company holds 67,000 acres of mining claims in the Rouyn-Noranda mining camp, accounting for nearly 67 percent of the entire mining camp.
- Rouyn-Noranda has a long history of mining and exploration. The area has established infrastructure and has been host to 50 former producers, including 20 base metal mines and 30 gold mines.
- Falco’s principal asset is the Horne 5 project which is a gold project with significant base metal by-products. It is located under the former Horne Mine which produced 11.6 Moz of gold and 2.5 billion pounds of copper.
- The Horne 5 is a world-class deposit containing 7.6 Moz gold equivalent in measured and indicated resources and 1.7 Moz gold equivalent in inferred resources.
- The Horne 5 project represents a robust, high-margin, 15-year underground mining project with attractive economics. The 2021 feasibility study indicates after-tax NPV at 5 percent of US$761 million and after-tax IRR of 18.9 percent.
- The operating lease and indemnity agreement (OLIA) with Glencore coupled with EIA admissibility receipt from the government body positions Falco to advance its Horne 5 project towards construction.
Key Project
Horne 5 Project
The Horne 5 project is a world-class deposit located beneath the former Horne mine in the Rouyn -Noranda mining camp. Horne mine was operated by Noranda from 1926 to 1976 and produced 11.6 Moz of gold and 2.5 Blbs of copper. The Rouyn-Noranda mining camp has a rich exploration history having produced 19 Moz of gold and 2.9 Blbs of copper. The camp has hosted 50 producers including 20 base metal mines and 30 gold mines.
The Horne 5 is a world-class deposit containing 6.1 Moz gold equivalent in proven and probable reserves, 7.6 Moz gold equivalent in measured and indicated resources, and 1.7 Moz gold equivalent in inferred resources. The project boasts strong partners including Osisko Development, Osisko Gold Royalties, Glencore, and the Quebec Government. Osisko Development is a major shareholder in Falco Resources with a 17.3 percent stake, and the Quebec Government holds close to 8 percent stake in Falco.
Aside from gold, Horne 5 has significant base metal by-products. As per the feasibility study, precious metals (gold + silver) account for 75.6 percent of the mining revenue, while base metals (copper and zinc), account for 24.3 percent of the total mine revenue.
The 2021 updated feasibility study on the Horne 5 project indicates robust project economics. The feasibility study shows the project would generate an after-tax NPV at 5 percent of US$761 million and an after-tax IRR of 18.9 percent over the 15-year mine life. The production profile would average annual production of 220,300 oz gold over the life of the mine. Further, the study suggests significant copper and zinc by-product credits from the copper and zinc production, as well as the highly automated modern operations resulting in a low projected all-in sustaining cost (AISC) of $587/oz. Horne 5’s AISC is among the first quartile of global low-cost operations.
Recent news flows including the OLIA with Glencore and the Horne 5 project’s EIA admissibility are significant milestones in the advancement of the project towards construction.
Falco Resources’ OLIA with Glencore Canada enables Falco to utilize a portion of Glencore's lands. The agreement entails establishing a technical committee comprising two representatives from Glencore and two from Falco, tasked with safeguarding the uninterrupted operations of Glencore’s Horne copper smelter. Additionally, a parallel strategic committee will be formed. Glencore will nominate one representative to join Falco's board of directors.
The successful completion of OLIA coupled with life-of-mine copper-zinc concentrate offtake agreements with Glencore positions Falco to advance its Horne 5 project towards construction. Further, the receipt of confirmation of the admissibility of its EIA for the Horne 5 project from the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks is a significant milestone. It provides a path forward for the advancement of the project.
The company is now advancing with the permitting and financing processes for the project. The construction of the Horne 5 mine could begin by February 2025.
Management Team
Luc Lessard – President, Chief Executive Officer and Director
Luc Lessard brings over 30 years of experience in the design, construction, and operation of mines. Before joining Falco, he held senior executive positions at Osisko Gold Royalties, Canadian Malartic GP (a joint venture of Agnico Eagle Mines and Yamana Gold), and Osisko Mining Corporation. At Osisko Mining Corporation, he oversaw the design, construction, and commissioning of the Canadian Malartic gold mine. Lessard has been involved in numerous surface and underground mining projects throughout his career. Lessard holds a bachelor’s degree in mining engineering from Laval University.
Anthony Glavac – Chief Financial Officer
Anthony Glavac has 20 years of experience in financial reporting, including over 14 years in the mining industry. Before joining Falco, he served as the director of financial reporting and internal controls at Dynacor Gold Mines and as the interim chief financial officer at Alderon Iron Ore. Glavac was previously the senior manager at KPMG, where he worked with a diverse portfolio of public and private companies, offering services such as audit, taxation, strategic advisory, and assistance with public offerings. Glavac is also engaged with other public companies within the mining sector.
Helene Cartier – Vice-president Environment, Sustainable Development and Community Relations
Helene Cartier possesses over 20 years of expertise in the environmental field. She began her mining career as part of the Cambior team before transitioning to the role of vice-president of environmental services and sustainable development at Osisko Mining Corporation. There, she played a pivotal role in the development and commissioning phases of the Canadian Malartic gold mine. She has served on the board of directors of several public and private companies.
Mireille Tremblay – Vice-president Legal Affairs and Corporate Secretary
Mireille Tremblay possesses more than 25 years of experience in business law, primarily in securities, mergers and acquisitions, corporate finance, and governance. Before joining Falco in January 2021 as the director of legal affairs, Tremblay served as a legal advisor to clients across diverse industries, including the mining sector. She advocated for companies and investors involved in mining transactions in Africa, notably during the construction of a gold mine in Burkina Faso and in negotiations with the Ivorian government. Additionally, she has represented numerous companies, underwriters, and investors in various contexts, including public offerings and private placement financings, both domestically and internationally. Tremblay holds a law degree from the University of Montreal.
Mario Caron – Independent Chair
Mario Caron possesses extensive expertise in the mining sector, accumulating over four decades of experience in senior executive and board roles. He has garnered this wealth of knowledge through engagements in underground and open pit operations, both domestically and abroad. Caron has served as CEO of public companies and has experience securing mining licenses and various permits in numerous jurisdictions. Caron earned his Bachelor of Engineering in mining, at McGill University.
Alexander Dann – Non-independent Director
Alexander Dann, a chartered professional accountant, has served with multinational public enterprises on financial operations and strategic planning. He brings more than 25 years of experience within the mining and manufacturing domains. He was chief financial officer of The Flowr Corporation, where he led the company towards its public listing on the TSXV. He also served as the CFO of Avion Gold and Era Resources, contributing significantly until their acquisitions by Endeavour Mining and The Sentient Group, respectively. He holds a bachelor’s degree in business administration from L’Universite Laval in Quebec City.
Claude Dufresne – Independent Director
Claude Dufresne has over three decades of experience in the mining industry. He has served in leadership roles at companies such as Niobay Metals and IAMGOLD. He was the founder of a metals company, Camet Metallurgy, which specialized in the sale and marketing of various metals. He obtained a diploma in mining engineering with a specialty in mineral processing from Universite Laval in 1991.
Paola Farnesi – Independent Director
Paola Farnesi has over 30 years of experience in corporate finance, financial reporting, M&A, and risk management. She is currently vice-president and treasurer of Domtar Corporation. Before this, she held various senior executive positions at Domtar including vice-president, internal audit. Before joining Domtar, Farnesi worked at Ernst & Young. She holds a Bachelor of Commerce and a Graduate degree in Public Accountancy from McGill University. She is a member of the Chartered Professional Accountants of Quebec and has earned the ICD.D designation from the Institute of Corporate Directors.
This article was written in collaboration with Couloir Capital.
OUTBACK ANNOUNCES $5 MILLION FINANCING
/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES/
TSX.V: OZ | OTCQB: OZBKF | FSE: S600
Outback Goldfields Corp . (the " Company " or " Outback ") (TSXV: OZ) (OTCQB: OZBKF) is pleased to announce a non-brokered private placement for minimum gross proceeds of $5,000,000 (the " Offering "). The Offering is being completed in conjunction with the Company's previously announced acquisition of a prospective portfolio of gold projects in Finland (the " Finnish Assets ") from a subsidiary of S2 Resources Ltd. (" S2 "), as detailed in the Company's press release dated March 1, 2024 (the " Transaction ").
Pursuant to the Offering, Outback will issue a minimum of 125,000,000 subscription receipts (each, a " Subscription Receipt ") at a price of $0.04 per Subscription Receipt (the " Offering Price ") for minimum gross proceeds of $5,000,000 . Each Subscription Receipt, upon satisfaction of the Release Conditions (as defined herein), will automatically convert into one unit (each, a " Unit "), with each Unit comprising of one common share of the Company (each, a " Share ") and one common share purchase warrant of the Company (each, a " Warrant "). Each Warrant shall entitle the holder thereof to purchase one additional Share at a price of $0.06 for a period of three years following the conversion of the Subscription Receipts.
"This transformative acquisition from S2 provides our shareholders with a world-class portfolio of 100% owned projects as well as joint ventures with major mining companies in a highly prospective jurisdiction," commented Chris Donaldson , CEO of Outback. "The Central Lapland Greenstone Belt of Northern Finland is an emerging gold camp and is host to several recent gold discoveries as well as Europe's largest primary gold mine, Agnico Eagle's Kittilä Mine, which produces over 200koz gold per annum. We look forward to welcoming new shareholders and working with S2 to complete this transaction and focus our technical team on making additional gold discoveries in Finland ."
Share Consolidation
Prior to completion of the Transaction, Outback expects to complete a consolidation of its outstanding common shares (each, a " Share ") pursuant to which it will issue one post-consolidation Share for each ten pre-consolidation Shares (the " Consolidation "). The number of Units underlying the Subscription Receipts will be adjusted to reflect the Consolidation, such that it is expected that an aggregate of 12,500,000 Units will be issued on conversion of the Subscription Receipts at a deemed issuance price of $0.40 per Unit.
Transaction Update
On March 1, 2024 , Outback announced the acquisition of the Finnish Assets from S2 for total consideration of $7,000,000 , consisting of a $1,500,000 cash payment and the issuance of $5,500,000 in Shares (the " Consideration Shares "). The deemed issuance price of the Consideration Shares will be equal to the Offering Price such that S2 will receive 13,750,000 Shares, on a post-Consolidation basis, on completion of the Transaction. It is expected that S2 will own approximately 43% of Outback, on a basic basis, upon completion of the Offering and the Transaction. It is anticipated that the Transaction will close in July 2024 .
The completion of the Transaction remains subject to a number of terms and conditions, among other standard conditions for a transaction of this nature, including, among other things: (i) the negotiation and execution of the Definitive Agreement; (ii) completion of the Offering; (iii) if required by the TSXV, approval of the shareholders of Outback; (iv) the preparation of a NI 43-101 compliant technical report for each of the material Finnish Assets that is acceptable to the TSXV and Outback; (v) the receipt of all required regulatory, stock exchanges (including the TSXV), creditor, court, security holder and other approvals, consents, permits, waivers, exemptions and orders; and (vi) if required by the TSXV, delivery of a sponsor report. There can be no assurance that all of the necessary regulatory and shareholder approvals will be obtained or that all conditions of closing will be met.
Offering Details
Expiry of the Warrants will be subject to acceleration if, following the issuance of the Warrants, the closing price of the Shares on the TSX Venture Exchange (the " TSXV "), or other such Canadian stock exchange on which the Shares are then principally traded, equals or exceeds $0.90 per Share, on a post-Consolidation basis, for a period of twenty consecutive trading days during the exercise period. In that case, the Company may accelerate the expiry date of the Warrants to the date which is 30 trading days from the date notice is given by the Company, by way of dissemination of a news release, to the holders of the Warrants.
The gross proceeds of the Offering will be held in escrow until the closing of the Transaction and the satisfaction of certain escrow release conditions (collectively, the " Release Conditions "). Upon satisfaction of the Release Conditions, the net proceeds from the Offering will be used by the Company to fund its acquisition of the Finnish Assets, for an initial exploration program on the S2 Finnish Assets and for general corporate purposes. If the Release Conditions are not met within 90 days of closing of the Offering then all funds will be released from escrow and returned to subscribers.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
All the securities issuable under the Offering will be subject to a four-month hold period from the date of closing of the Offering. The Offering remains subject to the receipt of all required regulatory approvals, including, without limitation, the approval of the TSXV.
Completion of the Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance and if applicable, disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.
Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Outback should be considered highly speculative.
The TSXV has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release contains forward-looking statements or forward-looking information relating to the future operations of the Company and other statements that are not historical facts. Forward-looking statements in this news release include but are not limited to: obtaining the necessary approvals required for the Transaction and the Offering; completion of the Transaction and the Offering and the timing thereof; final terms of the Transaction and Offering; the benefits of the Transaction and the Offering; and exploration activities.
Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: the benefits of the Transaction and the Offering; the Company's ability to carry on exploration and development activities; the timely receipt of required approvals; the price of metals; the integration of assets acquired by the Company; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include but are not limited to: the Company's early stage of development; the fluctuation of the price of metals; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; environmental risks and hazards; risks associated with negative operating cash flow; and risks associated with dilution. For a further discussion of risks relevant to the Company, see the Company's other public disclosure documents.
Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except as, and to the extent required by, applicable securities laws.
SOURCE Outback Goldfields Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/April2024/25/c4898.html
News Provided by Canada Newswire via QuoteMedia
Element79 Gold Corp. Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects