Agnico Eagle Reports Third Quarter 2024 Results – Record Free Cash Flow for the Fourth Consecutive Quarter; Balance Sheet Strengthened by Further Debt Reduction; Well Positioned to Achieve Gold Production and Cost Guidance
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations (416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS THIRD QUARTER 2024 RESULTS – RECORD FREE CASH FLOW FOR THE FOURTH CONSECUTIVE QUARTER; BALANCE SHEET STRENGTHENED BY FURTHER DEBT REDUCTION; WELL POSITIONED TO ACHIEVE GOLD PRODUCTION AND COST GUIDANCE; ONGOING EXPLORATION SUCCESS AT EXISTING OPERATIONS AND PIPELINE PROJECTS
Toronto (October 30, 2024) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the third quarter of 2024.
"We are excited to report record financial results for a fourth consecutive quarter. Our focus on operational performance, cost control and capital discipline has allowed us to deliver the leverage to record gold prices to our shareholders. This quarter we repaid $375 million of debt, increased our cash position and continued to provide strong returns to shareholders," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "We remain focused on realizing the full potential of our assets through continuous improvement and by advancing our pipeline of projects and supplemental exploration program. Strong drill results this quarter continue to demonstrate significant exploration upside at several of our mines and key pipeline projects, including the extension of the East Gouldie deposit at Canadian Malartic and the expansion of high-grade mineralization at Patch 7 at Hope Bay," added Mr. Al-Joundi.
Third quarter 2024 highlights:
- Solid quarterly gold production and cost performance – Payable gold production1 was 863,445 ounces at production costs per ounce of $908, total cash costs per ounce2 of $921 and all-in sustaining costs ("AISC") per ounce2 of $1,286
- Continued to deliver reliable operating and cost performance – Gold production and costs in the third quarter of 2024 were in line with plan, driven by strong production in Nunavut and at Macassa and Fosterville. The Company's continued focus on operational efficiencies and cost optimization drove record quarterly throughput and mining rates at multiple sites
- Well positioned to achieve 2024 gold production, cost and capital expenditures guidance – The Company is tracking well to meet its gold production guidance for the full year 2024. Total cash costs per ounce, AISC per ounce and capital expenditures guidance for 2024 remain unchanged
1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. 2 Total cash costs per ounce and all-in sustaining costs or AISC per ounce are non-GAAP ratios that are not standardized financial measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP measures and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding Certain Measures of Performance" below.
- Record quarterly adjusted net income3 – The Company reported quarterly net income of $567.1 million or $1.13 per share and adjusted net income of $572.6 million or $1.14 per share
- Record quarterly cash provided by operating activities and free cash flow – The Company generated record cash provided by operating activities of $1,084.5 million or $2.16 per share ($1,027.5 million or $2.05 per share before changes in non-cash working capital balances4) and free cash flow4 of $620.4 million or $1.24 per share ($563.4 million or $1.12 per share before changes in non-cash working capital balances4)
- Strengthening financial position with further reduction of debt – The Company increased its cash position by $55.2 million to $977.2 million as at September 30, 2024. The Company continued to reduce net debt5 in the third quarter of 2024, repaying the $100.0 million 5.02% Series B Senior Notes at maturity and repaying $275.0 million of the $600.0 million unsecured term loan facility drawn in 2023. Total debt outstanding was $1,467.2 million as at September 30, 2024. Year-todate, net debt has been reduced by $1,014.4 million, from $1,504.4 million at the beginning of the year to $490.0 million as at September 30, 2024
- Continued focus on shareholder returns – In the third quarter of 2024, the Company's Board of Directors declared a quarterly dividend of $0.40 per share. Additionally, the Company repurchased 362,343 common shares at an average share price of $82.86 for an aggregate of $30.0 million through its normal course issuer bid ("NCIB")
- Update on key value drivers and pipeline projects
- Detour Lake – In the third quarter of 2024, the Company advanced the site preparation for the underground project, including the completion of the pad that will host the surface infrastructure for the underground project and the removal of the overburden for the portal. Infill drilling into the high-grade corridor in the West Pit zone continued to confirm higher grades and a mineralized structure amenable to underground mining. Highlights include 22.5 grams per tonne ("g/t") gold over 12.9 metres at 490 metres depth and 15.0 g/t gold over 18.9 metres at 573 metres depth. Drilling into the West Extension zone to the west of current mineral resources saw highlights of 28.8 g/t gold over 3.6 metres at 570 metres depth and 11.7 g/t gold over 3.3 metres at 731 metres depth
- Odyssey mine at Canadian Malartic – In the third quarter of 2024, ramp development and shaft sinking activities progressed on schedule, reaching a depth of 873 metres and 839 metres, respectively, and the excavation of the temporary shaft loading station on level 64 was completed. Surface construction progressed as planned, with a focus on the service hoist and the operations complex. Recent exploration drilling continued to return good results in the eastern extension of the East Gouldie deposit up to 760 metres east of current mineral resources, including 3.0 g/t gold over 51.5 metres at 1,349 metres depth and 5.1 g/t gold over 8.2 metres at 1,455 metres depth. In the upper extension of East Gouldie, conversion drilling near the Odyssey shaft has returned intersections including 3.3 g/t gold over 20.8 metres at 814 metres depth. Results from the ongoing exploration program continue to show the potential to add significant mineral resources along extensions of the main East Gouldie deposit
3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
4 Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below.
5 Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance"
◦
| Exploration drilling during the third quarter of 2024 totalled 33,100 | |||
| metres and | continued to return wide, high-grade mineralized intervals at the Patch 7 zone, | ||
| including | 18.3 g/t gold over 16.4 metres at 479 metres depth, 16.8 g/t gold over 27.3 | ||
| metres at 436 metres depth and 11.9 g/t gold over 30.4 metres at 394 metres depth, further | |||
| confirming the greater thicknesses and higher gold grades in this area compared to the | |||
| rest of the Madrid deposit |
Third Quarter 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Thursday, October 31, 2024 at 11:00 AM (E.D.T.) to discuss the Company's financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may register on the Company's website at www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.945.7677 or toll-free 1.888.699.1199 to be entered into the call by an operator. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
To join the conference call by phone without operator assistance, you may register your phone number here 30 minutes prior to the scheduled start of the call to receive an instant automated call back.
Replay Archive:
Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 80122#. The conference call replay will expire on November 30, 2024.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Third Quarter 2024 Production and Cost Results
Production and Cost Results Summary Three Months Ended Nine Months Ended September 30, September 30,
| 2024 | 2023 | 2024 | 2023* | |
| Gold production (ounces) . . . . . . . . . . . . . . . . . . . . . | 863,445 | 850,429 2,637,935 2,536,446 | ||
| Gold sales (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . | 855,899 | 843,097 2,609,192 2,489,503 | ||
| Production costs per ounce . . . . . . . . . . . . . . . . . . . $ | 908 $ | 893 $ | 887 $ | 850 |
| Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . $ | 921 $ | 898 $ | 897 $ | 857 |
| AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,286 $ | 1,210 $ | 1,214 $ | 1,162 |
- Production and Cost Results Summary reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including
March 30, 2023 and 100% thereafter.
Gold Production
- Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from the Nunavut operations, Macassa and Detour Lake, partially offset by lower production at Canadian Malartic and La India
- First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from Canadian Malartic, Meadowbank and Macassa, partially offset by lower production at Fosterville and La India
Production Costs per Ounce
- Third Quarter of 2024 – Production costs per ounce increased when compared to the prior-year period primarily due to higher royalties arising from higher gold prices, partially offset by higher production and the benefit of the weaker Canadian dollar during the period
- First Nine Months of 2024 – Production costs per ounce increased when compared to the prioryear period primarily due to higher royalties arising from higher gold prices and higher production costs at Canadian Malartic related to underground mining operations, partially offset by higher production and the benefit of the weaker Canadian dollar during the period
Total Cash Costs per Ounce
- Third Quarter and First Nine Months of 2024 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to the reasons described above for the increase in production costs per ounce
AISC per Ounce
- Third Quarter and First Nine Months of 2024 – AISC per ounce increased when compared to the prior-year periods due to the factors causing higher total cash costs per ounce and anticipated higher sustaining capital expenditures primarily at Canadian Malartic and Detour Lake, partially offset by higher production during the period
Third Quarter 2024 Financial Results
Financial Results Summary Three Months Ended Nine Months Ended September 30, September 30, 2024 20236 2024 20236 Realized gold price ($/ounce)7 . . . . . . . . . . . . . . . . . . . . . $ 2,492 $ 1,928 $ 2,297 $ 1,933 Net income ($ millions)8 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 567.1 $ 174.8 $ 1,386.3 $ 2,315.4 Adjusted net income ($ millions) . . . . . . . . . . . . . . . . . . . . $ 572.6 $ 216.1 $ 1,485.3 $ 806.7 EBITDA ($ millions)9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,258.6 $ 722.0 $ 3,264.2 $ 3,878.4 Adjusted EBITDA ($ millions)9 . . . . . . . . . . . . . . . . . . . . . . $ 1,256.6 $ 768.4 $ 3,362.0 $ 2,394.0 Cash provided by operating activities ($ millions) . . . . . $ 1,084.5 $ 502.1 $ 2,829.0 $ 1,873.7 Cash provided by operating activities before changes $ 1,027.5 $ 668.7 $ 2,790.8 $ 1,970.5 in non-cash working capital balances ($ millions) . . . . .
Capital expenditures10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 485.8 $ 406.4 $ 1,265.1 $ 1,164.2 Free cash flow ($ millions) . . . . . . . . . . . . . . . . . . . . . . . . . $ 620.4 $ 82.3 $ 1,573.3 $ 645.3 Free cash flow before changes in non-cash working $ 563.4 $ 248.8 $ 1,535.0 $ 742.1 capital balances ($ millions) . . . . . . . . . . . . . . . . . . . . . . . .
| Net income per share (basic) . . . . . . . . . . . . . . . . . . . . . . $ | 1.13 $ | 0.35 $ | 2.78 $ | 4.76 |
| Adjusted net income per share (basic) . . . . . . . . . . . . . . $ | 1.14 $ | 0.44 $ | 2.97 $ | 1.66 |
| Cash provided by operating activities per share (basic) $ | 2.16 $ | 1.01 $ | 5.67 $ | 3.85 |
Cash provided by operating activities before changes $ 2.05 $ 1.35 $ 5.59 $ 4.05 in non-cash working capital balances per share (basic)
Free cash flow per share (basic) . . . . . . . . . . . . . . . . . . . $ 1.24 $ 0.17 $ 3.15 $ 1.33 Free cash flow before changes in non-cash working $ 1.12 $ 0.50 $ 3.07 $ 1.53 capital balances per share (basic) . . . . . . . . . . . . . . . . . .
Net Income
- Third Quarter of 2024
- Net income was $567.1 million ($1.13 per share). This result includes the following items (net of tax): derivative gains on financial instruments of $11.7 million ($0.02 per share), non-recurring tax adjustments and foreign currency translation gains on deferred tax liabilities of $5.5 million ($0.01 per share), net asset disposal losses of $3.7 million ($0.01 per share) and foreign exchange and other adjustments of $8.0 million (0.01 per share)
- Excluding the above items results in adjusted net income of $572.6 million or $1.14 per share
6 Certain previously reported line items have been restated to reflect the final purchase price allocation related to the acquisition of the Canadian assets of Yamana Gold Inc. (the "Yamana Transaction") including the 50% of Canadian Malartic that the Company did not own. Reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% thereafter.
7 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold.
8 For the first quarter of 2023, includes a $1.5 billion revaluation gain on the 50% interest the Company owned in Canadian Malartic prior to the Yamana Transaction on March 31, 2023.
9 "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
10 Includes capitalized exploration. Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of Performance" below.
- Included in net income and not adjusted above, is a non-cash stock option expense of $2.1 million (less than $0.01 per share)
- Net income of $567.1 million in the third quarter of 2024 increased compared to net income of $174.8 million in the prior-year period primarily due to stronger mine operating margins11 resulting from higher realized gold prices and higher sales volumes, gains on derivative financial instruments in the current period and lower amortization expenses (primarily at Meadowbank, Canadian Malartic and Detour Lake), partially offset by higher income and mining tax expenses and higher production expenses
- First Nine Months of 2024 – Net income of $1,386.3 million decreased compared to the prior-year period net income of $2,315.4 million primarily due to a remeasurement gain at Canadian Malartic in the prior period and higher income and mining tax expenses, partially offset by higher operating margins from higher realized gold prices and higher sales volumes. The remeasurement gain in the prior period is from the application of purchase accounting relating to a business combination attained in stages, which required the remeasurement of the Company's previously held 50% interest in Canadian Malartic to fair value.
Adjusted EBITDA
- Third Quarter of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to stronger mine operating margins from higher realized gold prices and higher sales volumes
- First Nine Months of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to the reasons set out above for the third quarter of 2024 and as a result of the acquisition of the remaining 50% of Canadian Malartic
Cash Provided by Operating Activities
- Third Quarter and First Nine Months of 2024 – Cash provided by operating activities and cash provided by operating activities before changes in non-cash working capital balances increased when compared to the prior-year periods primarily due to the reasons described above related to the increases in adjusted EBITDA
Free Cash Flow Before Changes in Non-cash Working Capital Balances
- Third Quarter and First Nine Months of 2024 – Free cash flow before changes in non-cash working capital balances increased when compared to the prior-year periods due to the reasons described above related to cash provided by operating activities, partially offset by higher additions to property, plant and mine development
Capital Expenditures
In the third quarter of 2024, capital expenditures were $437.2 million and capitalized exploration expenditures were $48.6 million, for a total of $485.8 million. Expected capital expenditures (including capitalized exploration) remain in line with the updated guidance for the full year 2024. Further details are set out in the "2024 Guidance" section below.
The following table sets out a summary of capital expenditures (including sustaining capital expenditures and development capital expenditures) and capitalized exploration in the third quarter of 2024 and the first nine months of 2024.
11 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to net income see "Note Regarding Certain Measures of Performance"
Summary of Capital Expenditures
($ thousands)
Capital Expenditures* Capitalized Exploration Three Months Nine Months Three Months Nine Months Ended Ended Ended Ended Sep 30, 2024 Sep 30, 2024 Sep 30, 2024 Sep 30, 2024 Sustaining Capital Expenditures
| LaRonde . . . . . . . . . . . . . . . . . . . . . . $ | 19,302 $ | 63,125 $ | 473 | 1,349 |
| Canadian Malartic . . . . . . . . . . . . . . | 36,789 | 91,887 | — | — |
| Goldex . . . . . . . . . . . . . . . . . . . . . . . . | 16,505 | 39,912 | 753 | 2,536 |
| Detour Lake . . . . . . . . . . . . . . . . . . . . | 77,638 | 189,247 | — | — |
| Macassa . . . . . . . . . . . . . . . . . . . . . . . | 12,200 | 28,389 | 451 | 1,259 |
| Meliadine . . . . . . . . . . . . . . . . . . . . . . | 19,716 | 53,664 | 2,321 | 6,148 |
| Meadowbank . . . . . . . . . . . . . . . . . . . | 30,216 | 71,718 | — | — |
| Fosterville . . . . . . . . . . . . . . . . . . . . . | 9,509 | 22,298 | — | — |
| Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,537 | 51,813 | 316 | 1,181 |
| Pinos Altos . . . . . . . . . . . . . . . . . . . . . | 7,099 | 18,190 | 742 | 1,662 |
| La India . . . . . . . . . . . . . . . . . . . . . . . | — | 22 | — | — |
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,251 | 3,520 | 144 | 989 |
Total Sustaining Capital Expenditures . . . . . . . . . . . . . . . . . . . . $ 247,762 $ 633,785 $ 5,200 $ 15,124
Development Capital Expenditures
| LaRonde . . . . . . . . . . . . . . . . . . . . . . $ | 16,442 $ | 61,168 $ | — | — | ||
| Canadian Malartic . . . . . . . . . . . . . . | 41,824 | 121,028 | 1,510 | 3,702 | ||
| Goldex . . . . . . . . . . . . . . . . . . . . . . . . | 1,830 | 8,886 | — | — | ||
| Detour Lake . . . . . . . . . . . . . . . . . . . . | 52,199 | 121,273 | 9,051 | 26,150 | ||
| Macassa . . . . . . . . . . . . . . . . . . . . . . . | 27,550 | 62,008 | 7,521 | 25,225 | ||
| Meliadine . . . . . . . . . . . . . . . . . . . . . . | 21,070 | 58,164 | 1,888 | 8,694 | ||
| Meadowbank . . . . . . . . . . . . . . . . . . . | 7 | (20) | — | — | ||
| Fosterville . . . . . . . . . . . . . . . . . . . . . | 8,402 | 27,016 | 2,531 | 9,497 | ||
| Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . | 775 | 2,971 | 1,171 | 5,730 | ||
| Pinos Altos . . . . . . . . . . . . . . . . . . . . . | 355 | 1,806 | 10 | 14 | ||
| San Nicolás project . . . . . . . . . . . . . | 3,422 | 15,077 | — | — | ||
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,530 | 23,547 | 19,745 | 34,270 |
Total Development Capital Expenditures . . . . . . . . . . . . . . . . . . . . $ 189,406 $ 502,924 $ 43,427 $ 113,282
Total Capital Expenditures . . . . . . . $ 437,168 $ 1,136,709 $ 48,627 $ 128,406
- Excludes capitalized exploration
2024 Guidance
Based on the operational performance in the first nine months of 2024, the Company is tracking well to meet the mid-point of gold production guidance for the full year 2024. In addition, total cash costs per ounce, AISC per ounce and capital expenditures guidance for 2024 remain unchanged. A summary of the Company's guidance is set out below.
2024 Guidance Summary
(In millions other than per ounce measures or as otherwise stated)
Range Mid-Point
| Gold Production (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,350,000 | 3,550,000 | 3,450,000 |
| Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . | $875 | $925 | $900 |
| AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $1,200 | $1,250 | $1,225 |
| Exploration and corporate development . . . . . . . . . . . . . . . | — | — | $271 |
| Depreciation and amortization expense . . . . . . . . . . . . . . . | — | — | $1,560 |
| General & administrative expense . . . . . . . . . . . . . . . . . . . . | $175 | $195 | $185 |
| Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $75 | $90 | $83 |
| Tax rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 33% | 38% | 35% |
| Cash taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $400 | $500 | $450 |
| Capital expenditures (excluding capitalized exploration) . | $1,600 | $1,700 | $1,650 |
| Capitalized exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | — | $187 |
Record Free Cash Flow Generation Alongside Capital Discipline Continue to Strengthen Financial Position and Commitment to Shareholder Returns
Cash and cash equivalents increased by $55.2 million when compared to the prior quarter primarily due to higher cash provided by operating activities as a result of higher revenues from higher realized gold prices and favourable changes in non-cash working capital balances, partially offset by higher cash used in financing activities related to $375.0 million repayment of debt, and higher cash used in investing activities from higher capital expenditures and higher purchases of equity securities and other investments.
As at September 30, 2024, the Company's total long-term debt was $1,467.2 million, a reduction of $374.5 million from the second quarter of 2024. On July 24, 2024, $100.0 million was repaid with cash on hand on the 2012 Series B 5.02% Senior Notes on maturity. In addition, a total of $275.0 million was prepaid of the $600.0 million outstanding on the term loan facility during the quarter, further strengthening the Company's investment grade balance sheet. The remaining $325.0 million of indebtedness under the term loan facility is due and payable on April 21, 2025.
No amounts were outstanding under the Company's unsecured revolving bank credit facility as at September 30, 2024, and available liquidity remained at approximately $2.0 billion, not including the uncommitted $1.0 billion accordion feature.
The following table sets out the calculation of net debt, which decreased by $429.7 million when compared to the prior quarter as a result of the debt repayments and an increase in cash and cash equivalents.
Net Debt Summary
($ millions)
As at As at Sep 30, 2024 Jun 30, 2024
| Current portion of long-term debt . . . . . . . . . . . . $ | 415.0 $ | 740.0 |
| Non-current portion of long-term debt . . . . . . . . | 1,052.2 | 1,101.7 |
| Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,467.2 $ | 1,841.7 |
| Less: cash and cash equivalents . . . . . . . . . . . . | (977.2) | (922.0) |
| Net debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 490.0 $ | 919.7 |
Hedges
Approximately 68% of the Company's remaining estimated Canadian dollar exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements above 1.34 C$/US$. Approximately 26% of the Company's remaining estimated Euro exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements below 1.10 US$/EUR. Approximately 62% of the Company's remaining Australian dollar exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements above 1.46 A$/US$. Approximately 19% of the Company's remaining estimated Mexican peso exposure for 2024 is hedged at an average floor price providing protection in respect of exchange rate movements above 18.00 MXP/US$. The Company's full year 2024 cost guidance is based on assumed exchange rates of 1.34 C$/US$, 1.10 US$/EUR, 1.45 A$/US$ and 16.50 MXP/US$.
With the 2024 sealift at the Company's Nunavut operations largely completed, approximately 42% of the Company's remaining estimated diesel exposure for 2024 is hedged at an average price of $0.76 per litre (excluding transportation and taxes), which is expected to reduce the Company's exposure to diesel price volatility in 2024. The Company's 2024 cost guidance is based on an assumed diesel price of $0.80 per litre (excluding transportation and taxes).
Based on these 2024 hedge positions, the Company expects to continue to benefit from the positive foreign exchange impact on all its operating currencies, as well as the positive impact from diesel exposure when compared to 2024 cost guidance. The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs for the balance of 2024 and 2025. Hedging positions are not factored into 2024 or future guidance.
Shareholder Returns
Dividend Record and Payment Dates for the Fourth Quarter of 2024
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on December 16, 2024 to shareholders of record as of November 29, 2024. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2024 Fiscal Year
| Record Date | Payment Date |
| March 1, 2024 | March 15, 2024 |
| May 31, 2024 | June 14, 2024 |
| August 30, 2024 | September 16, 2024 |
| November 29, 2024* | December 16, 2024* |
*Declared
Dividend Reinvestment Plan
In the third quarter of 2024, the Company amended the terms of its dividend reinvestment plan (the "DRIP") to provide the flexibility to adjust the discount provided under the DRIP to between no discount (0%) and 5%. For the dividend payable on December 16, 2024 to shareholders of record as of November 29, 2024, the discount provided for under the DRIP will be 1%. If the discount is altered or eliminated by the Company in the future, the Company will include information regarding the change in discount from such level in a news release prior to the effectiveness of the change.
For a copy of the amended and restated DRIP, and for additional information on the Company's DRIP, see: Dividend Reinvestment Plan
International Dividend Currency Exchange
For information on the Company's international dividend currency exchange program, please contact Computershare Trust Company of Canada by phone at 1.800.564.6253 or online at www.investorcentre.com or www.computershare.com/investor.
Normal Course Issuer Bid
The Company believes that its NCIB is a flexible and complementary tool that, together with its quarterly dividend, is part of the Company's overall capital allocation program and generates value for shareholders. The Company can purchase up to $500.0 million of its common shares under the NCIB, subject to a maximum of 5% of its issued and outstanding common shares. Purchases under the NCIB may continue for up to one year from the commencement day on May 4, 2024. In the third quarter of 2024, the Company repurchased 362,343 common shares for an aggregate of $30.0 million through the NCIB. In the first nine months of 2024, the Company repurchased 1,500,386 common shares for an aggregate of $99.9 million under the NCIB and the Company's previous NCIB, at an average share price of $66.58.
Third Quarter 2024 Environment, Social and Governance Highlights
- International Mine Rescue Competition – The Emergency Response Team from Nunavut won the overall International Mine Rescue Competition ("IMRC") hosted by the National Mining Agency in Colombia, highlighting the strength of the Company's commitment to mine safety and rescue excellence. The IMRC is a highly regarded global event organized by the International Mine Rescue Body to promote mine rescue operations at the international level and to improve mine rescue knowledge and practices through global cooperation
- Donation to the Université du Québec en Abitibi-Témiscamingue (UQAT) – A ceremony was held to celebrate the opening of a new outdoor space on the pavilion grounds at the UQAT, Vald'Or Campus to foster teaching, sharing and reconciliation among Indigenous and non-Indigenous students. The Company is a significant donor for the new space, which was designed to promote intercultural connections and celebrate Indigenous cultures
- Reforestation event with the Huajumar community in Mexico – In the third quarter of 2024, an event was held to plant more than 1,500 native pine trees in an area previously affected by forest fires. Approximately 280 people participated including kindergarten, elementary and high school students and the COEPI group (Comisión Estatal para Pueblos Indígenas)
- Royal Canadian Mint launched new gold coin entirely sourced from Detour Lake – The Royal Canadian Mint issued its newest Gold Maple Leaf one ounce gold bullion coin sourced completely from Detour Lake. The Company was selected as a result of its commitment to high standards of responsibility and sustainability
Update on Key Value Drivers and Pipeline Projects
Highlights on key value drivers, including Odyssey, Detour Lake underground, Hope Bay and San Nicolás are set out below. Details on certain mine expansion projects (Detour Lake mill optimization and Meliadine Phase 2 expansion) are set out in the applicable operational sections of this news release.
Odyssey Project
In the third quarter of 2024, ramp development continued to progress on schedule, and as at September 30, 2024, the main ramp reached a depth of 873 metres. At this depth, it will split into two priority faces: one advancing towards the mid-shaft loading station on level 111 and the other face extending towards the bottom of the orebody. Additionally, the Company continued to develop the main ventilation system, with the fresh air ramp between Odyssey South and East Gouldie completed in the quarter.
In the third quarter of 2024, shaft sinking continued to progress on schedule and, as at September 30, 2024, the shaft reached a depth of 839 metres. During the quarter, the excavation of the temporary loading pocket between levels 60 and 66 was completed, along with the detailed engineering and procurement. The construction team was mobilized and initiated construction at the end of September 2024. The temporary loading station is expected to be commissioned by mid-2025. The design of the mid-shaft loading station between levels 102 and 111 is in progress. This station will include a material handling system for ore and waste, along with support infrastructure, including a maintenance shop. Excavation of the mid-shaft loading station is expected to begin in the second quarter of 2025.
Surface construction progressed on schedule and on budget in the third quarter of 2024, with focus areas including the main hoist building and the operational complex. At the main hoist building, the installation of the electrical components and controls for the service hoist were completed, followed by the testing of the hoist without ropes. Rope installation is planned for the fourth quarter of 2024 and the service hoist is expected to be commissioned in the first half of 2025. In the quarter, the construction of the main office and service building commenced, initiating the building foundations. The construction of the main office building is expected to be completed by the end of 2025.
Exploration drilling at the Odyssey mine and regional exploration drilling around the mine totalled 68,800 metres during the third quarter (145,900 metres during the first nine months of 2024) with up to 11 underground drill rigs and 13 surface drill rigs in operation, primarily targeting the East Gouldie and Odyssey deposits and regional exploration targets in the eastern portion of the property.
Drilling into the lower eastern extension of the East Gouldie mineralized envelope intersected high grade mineralization up to 760 metres east of the current mineral resources, with highlights that included: hole MEX24-316 returning 3.0 g/t gold over 51.5 metres at 1,349 metres depth, including 7.5 g/t gold over 6.1 metres at 1,347 metres depth, and 3.4 g/t gold over 16.6 metres at 1,437 metres depth; hole MEX24-311W returning 5.1 g/t gold over 8.2 metres at 1,455 metres depth; and hole MEX24-311WA returning 4.5 g/t gold over 9.7 metres at 1,497 metres depth.
Drilling into this new portion of the deposit during the first nine months of 2024 has consistently intersected significant gold mineralization, demonstrating the potential to add mineral resources at depth to the east of the main East Gouldie orebody.
In the upper extension of the East Gouldie deposit near the Odyssey shaft and above current mineral resources, underground conversion drilling intersected multiple long intervals of mineralization in an area that extends 500 metres laterally and 400 metres vertically, with highlights that included: hole UGEG-075-007 returning 3.3 g/t gold over 20.8 metres at 814 metres depth, including 8.7 g/t gold over 5.0 metres at 810 metres depth; hole UGEG-075-022 returning 6.2 g/t gold over 7.4 metres at 806 metres depth; and hole UGEG-054-002 returning 4.0 g/t gold over 9.6 metres at 755 metres depth and 4.5 g/t gold over 7.1 metres at 792 metres depth.
Continued conversion drilling success in this area would confirm the potential to add mineral reserves that could provide additional production for the operation that would require modest additional lateral development considering the area's proximity to the existing ramp infrastructure.
At Odyssey North, underground conversion drilling highlights included: hole UGOD-075-007 returning 2.5 g/t gold over 16.5 metres at 906 metres depth; hole UGOD-075-008 returning 1.7 g/t gold over 23.3 metres at 906 metres depth; and hole UGOD-075-006 returning 1.6 g/t gold over 16.0 metres at 947 metres depth. These positive results will assist in positioning future infrastructure in an area with potential development related to the Odyssey internal zones.
At Odyssey South, surface drill holes intersected the Odyssey internal zones, with highlights that included: hole MEX24-318 returning 1.7 g/t over 7.8 metres at 457 metres depth and 7.9 g/t gold over 5.9 metres (core length) at 520 metres depth; hole MEX24-315 returning 4.5 g/t gold over 3.4 metres at 586 metres depth; and hole MEX24-317 returning 6.2 g/t gold over 2.1 metres at 843 metres depth. The results further demonstrate the potential to add new mineral reserves and mineral resources in the Odyssey internal zones that could be brought into production using existing mine infrastructure.
Selected recent drill intercepts from the East Gouldie deposit, Odyssey internal zones and the Odyssey North zone at the Odyssey mine are set out in the table and composite longitudinal section below.
| Drill hole | Deposit / zone | From (metres) | To (metres) | Depth of midpoint below surface (metres) | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped)* |
|---|---|---|---|---|---|---|---|
| MEX24-311W | East Gouldie | 1,826.0 | 1,834.5 | 1,455 | 8.2 | 5.3 | 5.1 |
| MEX24-311WA | East Gouldie | 1,866.2 | 1,876.6 | 1,497 | 9.7 | 6.5 | 4.5 |
| MEX24-316 | East Gouldie | 1,639.7 | 1,712.5 | 1,349 | 51.5 | 3.0 | 3.0 |
| including | 1,670.0 | 1,678.6 | 1,347 | 6.1 | 7.5 | 7.5 | |
| and | East Gouldie | 1,795.7 | 1,812.8 | 1,437 | 16.6 | 3.4 | 3.4 |
| UGEG-054-002 | East Gouldie | 633.6 | 643.4 | 755 | 9.6 | 4.0 | 4.0 |
| and | East Gouldie | 753.0 | 760.1 | 792 | 7.1 | 4.5 | 4.5 |
| UGEG-075-007 | East Gouldie | 600.4 | 621.5 | 814 | 20.8 | 3.3 | 3.3 |
| including | 600.4 | 605.5 | 810 | 5.0 | 8.7 | 8.7 | |
| UGEG-075-022 | East Gouldie | 575.0 | 582.7 | 806 | 7.4 | 6.2 | 6.2 |
| MEX24-315 | Odyssey internal | 740.7 | 744.4 | 586 | 3.4 | 8.4 | 4.5 |
| MEX24-317 | Odyssey unknown** | 954.5 | 957.5 | 843 | 2.1 | 6.2 | 6.2 |
| MEX24-318 | Odyssey internal | 672.3 | 680.5 | 457 | 7.8 | 1.7 | 1.7 |
| and | Odyssey internal | 771.1 | 777.0 | 520 | 5.9*** | 14.9 | 7.9 |
| UGOD-075-006 | Odyssey North | 500.0 | 517.4 | 947 | 16.0 | 1.6 | 1.6 |