Agnico Eagle Reports Fourth Quarter and Full Year 2024 Results – Record Annual Gold Production and Free Cash Flow; Balance Sheet Strengthened by Further Debt Reduction; Updated Three-Year 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 FOURTH QUARTER AND FULL YEAR 2024 RESULTS – RECORD ANNUAL GOLD PRODUCTION AND FREE CASH FLOW; BALANCE SHEET STRENGTHENED BY FURTHER DEBT REDUCTION; UPDATED THREE-YEAR GUIDANCE
Toronto (February 13, 2025) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the fourth quarter and full year 2024, as well as future operating guidance.
"I'm pleased to report another year of record operational and financial performance, achieving our production and cost guidance. We are very proud of our team's work to control costs, which, coupled with a favourable gold price environment, has resulted in record operating margins. This success, along with capital discipline, has enabled us to reduce net debt by $1.3 billion since the beginning of the year and return close to $1.0 billion dollars to our shareholders," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "Looking ahead, we will remain laser focused on cost control and capital discipline. Our updated three-year production guidance forecasts stable production at peer leading costs. Our exploration program continues to yield positive results, replacing mineral reserves and increasing our mineral resource base. Given our solid track record of execution, we believe we are well positioned to continue to generate strong returns while we advance our pipeline projects and build the foundations for profitable future growth," added Mr. Al-Joundi.
Fourth quarter and full year 2024 highlights:
- Solid quarterly gold production and cost performance – Payable gold production1 was 847,401 ounces at production costs per ounce of $881, total cash costs per ounce2 of $923 and all-in sustaining costs ("AISC") per ounce2 of $1,316
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 per ounce 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 ratios 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 income and strong free cash flow generation – The Company reported quarterly net income of $509 million or $1.02 per share and record adjusted net income3 of $632 million or $1.26 per share. The Company generated record cash provided by operating activities of $1,132 million or $2.26 per share ($1,090 million or $2.17 per share of cash provided by operating activities before changes in non-cash working capital balances4) and free cash flow4 of $570 million or $1.14 per share ($528 million or $1.05 per share of free cash flow before changes in non-cash working capital balances4)
- Record annual gold production and free cash flow driven by solid operational performance
- Payable gold production in 2024 was 3,485,336 ounces at production costs per ounce of $885,
total cash costs per ounce of $903 and AISC per ounce of $1,239. Production for 2024 was slightly above the midpoint of the Company's 2024 guidance range of 3.35 million ounces to 3.55 million ounces. Total cash costs per ounce were in-line with the midpoint of the Company's 2024 guidance and AISC per ounce were within the range of the Company's 2024 guidance. Cash provided by operating activities for the full year 2024 was $3,961 million and free cash flow was $2,143 million ($2,063 million before changes in non-cash components of working capital). The Company's continued focus on operational efficiencies resulted in several annual throughput and mining rate records during the year
- Increase in gold mineral reserves and inferred mineral resources – Year-end 2024 gold mineral reserves increased by 0.9% to a record of 54.3 million ounces of gold (1,277 million tonnes grading 1.32 grams per tonne ("g/t") gold). The year-over-year increase of mineral reserves is in part due to technical evaluations completed for the Upper Beaver project and the declaration of initial mineral reserves at the Wasamac project. At year-end 2024, measured and indicated mineral resources decreased by 2.3% to 43.0 million ounces (1,167 million tonnes grading 1.14 g/t gold) and inferred mineral resources increased by 9.5% to 36.2 million ounces (451 million tonnes grading 2.49 g/t gold). For further details, see the Company's exploration news release dated February 13, 2025
- Strengthened financial position with further debt repayment – The Company continued to reduce debt in the fourth quarter of 2024, repaying the $325 million outstanding balance on the $600 million unsecured term loan facility drawn in 2023 as part of the acquisition of Yamana Gold Inc.'s Canadian assets. Total debt outstanding was $1,143 million as at December 31, 2024. Net debt5 was reduced by $1,287 million in 2024, from $1,504 million at the beginning of the year to $217 million as at December 31, 2024
- Continued focus on shareholder returns – In the fourth quarter of 2024, the Company's Board of Directors declared a quarterly dividend of $0.40 per share. Additionally, the Company repurchased 248,700 common shares at an average share price of $80.39 for an aggregate of $20 million through its normal course issuer bid ("NCIB")
- New three-year guidance shows stable production outlook – Payable gold production is forecast to remain stable at approximately 3.3 to 3.5 million ounces annually from 2025 to 2027. While the 2025 and 2026 gold production guidance is slightly lower than the prior three-year guidance issued on February 15, 2024 ("Previous Guidance") (primarily as a result of the deferral of processing low margin ore), the outlook for 2027 has improved as expected contributions in 2027 from East Gouldie at Canadian Malartic, LaRonde and Macassa are expected to offset lower gold grade sequences at Detour Lake and a decline in production at Meadowbank
3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
4 Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below.
5 Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance" below.
- Peer leading total cash costs and AISC reflect stabilized rate of inflation – Total cash costs per ounce and AISC per ounce in 2025 are forecast to be in the range of $915 to $965 and $1,250 to $1,300, respectively. When compared to the full year 2024 total cash costs per ounce of $903 and AISC per ounce of $1,239, the midpoints of these ranges represent an approximate 4% and 3% increase, respectively. The expected cost increases in 2025 are mostly related to lower grade sequence at Fosterville, Canadian Malartic and Meadowbank, along with relatively modest forecast cost increases in labour, spare parts and maintenance
- Increased investment in pipeline projects, with potential to support future production growth – Capital expenditures in 2025 (excluding capitalized exploration) are expected to be between $1.75 billion and $1.95 billion, compared to capital expenditures of $1.66 billion in 2024. Capitalized exploration is forecast to be between $290 million and $310 million, compared to capitalized exploration of $184 million in 2024. The expected increases in 2025 are mostly attributable to additional capital expenditures to advance pipeline projects, including Odyssey, the Detour Lake underground project, the Upper Beaver project and Hope Bay, which the Company believes have the potential to drive profitable growth and generate strong returns in the mediumterm
- Enhancing key value drivers and pipeline projects, with a focus on Detour Lake, Canadian Malartic and Hope Bay – Further details on exploration results in 2024 are included in the Company's exploration news release dated February 13, 2025. The Company expects to provide updates on these initiatives and additional opportunities that are being evaluated throughout 2025
- Detour Lake – In the fourth quarter of 2024, the mill successfully achieved the targeted throughput of 77,000 tonnes per day ("tpd") (or an equivalent rate of 28 million tonnes per annum ("Mtpa")), setting a quarterly record for tonnes milled. This success was driven by a stable run-time of 93% and continuous optimization efforts. The Company will continue to advance various optimization initiatives, with a target to increase mill throughput to 79,450 tpd (or an equivalent 29 Mtpa) by 2028. The Company completed site preparation for the excavation of the underground exploration ramp, which is expected to commence in the first half of 2025, following the receipt of the permit to take water. The Company's exploration program continued to attempt to de-risk the underground project, with conversion drilling resulting in an upgrade of the underground mineral resource at year-end 2024
- Odyssey – In the fourth quarter of 2024, ramp development, shaft sinking activities and surface construction progressed on schedule. At December 31, 2024, the shaft had reached a depth of 1,026 metres at level 102, the top of the mid-shaft loading station. The Company continues to focus on additional upside potential at Odyssey. A successful exploration program in 2024 resulted in the expansion of the East Gouldie mineral resource, which will be used in the continued technical evaluation of a potential second shaft at Odyssey. In the fourth quarter of 2024, the Company also commenced a take-over bid to acquire all of the issued and outstanding common shares (the "O3 Shares") of O3 Mining Inc. ("O3 Mining"). As at February 3, 2025, the Company had taken up 115,842,990 O3 Shares for aggregate consideration of C$194 million, representing approximately 96.5% of the outstanding O3 Shares on an undiluted basis. The Company expects to complete the acquisition of 100% of the common shares of O3 Mining in the first quarter of 2025, consolidating its land package at Canadian Malartic. O3 Mining owns the Marban deposit, which has the potential to become a satellite open pit to feed the Canadian Malartic mill in the medium-term as part of the Company's "fill-the-mill" strategy
- Patch 7 at Hope Bay – Exploration drilling in 2024 focused mainly on resource expansion and conversion on the Madrid deposit following the strong drilling intercepts obtained at the Patch 7 zone. An initial indicated mineral resource estimate was declared as at December 31, 2024 for Patch 7 of 0.9 million ounces of gold (4.3 million tonnes grading 6.64 g/t gold). The Company believes these results suggest the potential for a larger production scenario
and they are being integrated in the internal technical evaluation of the Hope Bay project, which is expected to be completed in the first half of 2026
Fourth Quarter and Full Year 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Friday, February 14, 2025, at 11:00 AM (E.S.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 93737#. The conference call replay will expire on March 14, 2025.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Fourth Quarter and Full Year 2024 Production and Cost Results
Production and Cost Results Summary Three Months Ended Year Ended December 31, December 31,
| 2024 | 2023 | 2024 | 2023* | ||
| Gold production (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . | 847,401 | 903,208 | 3,485,336 3,439,654 | ||
| Gold sales (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 824,902 | 874,629 | 3,434,094 3,364,132 | ||
| Production costs per ounce** . . . . . . . . . . . . . . . . . . . . . $ | 881 $ | 861 $ | 885 $ | 853 | |
| Total cash costs per ounce** . . . . . . . . . . . . . . . . . . . . . . $ | 923 $ | 888 $ | 903 $ | 865 | |
| AISC per ounce** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,316 $ | 1,227 $ | 1,239 $ | 1,179 |
- Production and Cost Results Summary reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including
March 30, 2023 and 100% thereafter.
** Production costs per ounce, total cash costs per ounce and AISC per ounce are reported on a per ounce of gold produced basis.
Gold Production
- Fourth Quarter of 2024 – Gold production decreased when compared to the prior-year period primarily due to lower production from Canadian Malartic, La India, Detour Lake and Fosterville, partially offset by higher production at Macassa and Meadowbank
- Full Year 2024 – Gold production increased when compared to the prior year primarily due to higher production from Meadowbank, Canadian Malartic and Macassa, partially offset by lower production at Fosterville and La India
Production Costs per Ounce
- Fourth 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 and lower production, partially offset by the benefit of the weaker Canadian dollar during the period
- Full Year 2024 – Production costs per ounce increased when compared to the prior year 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 overall higher production and the benefit of the weaker Canadian dollar during the period
Total Cash Costs per Ounce
- Fourth Quarter and Full Year 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 during the respective periods
AISC per Ounce
- Fourth Quarter of 2024 – AISC per ounce increased when compared to the prior-year period due to the factors causing higher total cash costs per ounce during the period as well as higher sustaining capital expenditures, primarily at Canadian Malartic and Detour Lake, partially offset by lower general and administrative expenses during the period
- Full Year 2024 – AISC per ounce increased when compared to the prior year due to the factors causing higher total cash costs per ounce during the year, as well as higher sustaining capital expenditures, primarily at Canadian Malartic, Goldex and Kittila
Fourth Quarter and Full Year 2024 Financial Results
Financial Results Summary Three Months Ended Year Ended
| ($ millions, unless otherwise stated) | December 31, | December 31, | ||
|---|---|---|---|---|
| 2024 | 20236 | 2024 | 2023 | |
| Realized gold price ($/ounce)7 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 2,660 $ | 1,982 $ | 2,384 $ | 1,946 |
| Net income (loss)8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 509 $ | (374) $ | 1,896 $ | 1,941 |
| Adjusted net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 632 $ | 289 $ | 2,118 $ | 1,096 |
| EBITDA9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,198 $ | 103 $ | 4,462 $ | 3,981 |
| Adjusted EBITDA9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,332 $ | 842 $ | 4,694 $ | 3,236 |
| Cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . $ | 1,132 $ | 728 $ | 3,961 $ | 2,602 |
Cash provided by operating activities before changes in non- $ 1,090 $ 777 $ 3,881 $ 2,748 cash working capital balances . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 576 $ 437 $ 1,841 $ 1,601 Free cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 570 $ 302 $ 2,143 $ 947 Free cash flow before changes in non-cash working capital $ 528 $ 352 $ 2,063 $ 1,094 balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
| Net income (loss) per share (basic) . . . . . . . . . . . . . . . . . . . . . . $ | 1.02 $ | (0.75) $ | 3.79 $ | 3.97 |
| Adjusted net income per share (basic) . . . . . . . . . . . . . . . . . . . . $ | 1.26 $ | 0.58 $ | 4.24 $ | 2.24 |
| Cash provided by operating activities per share (basic) . . . . . $ | 2.26 $ | 1.47 $ | 7.92 $ | 5.32 |
Cash provided by operating activities before changes in non- $ 2.17 $ 1.57 $ 7.76 $ 5.62 cash working capital balances per share (basic) . . . . . . . . . . .
Free cash flow per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.14 $ 0.61 $ 4.29 $ 1.94 Free cash flow before changes in non-cash working capital $ 1.05 $ 0.71 $ 4.13 $ 2.24 balances per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Income
- Fourth Quarter of 2024
- Net income was $509 million ($1.02 per share). This result includes the following items (net of tax): derivative losses on financial instruments of $76 million ($0.15 per share), nonrecurring tax adjustments and foreign currency translation losses on deferred tax liabilities of $21 million ($0.04 per share), net asset disposal losses of $12 million ($0.02 per share), foreign exchange losses of $10 million (0.02 per share) and other adjustments of $4 million (0.01 per share)
- Excluding the above items results in adjusted net income of $632 million or $1.26 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 then 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.
- Net income of $509 million in the fourth quarter of 2024 increased compared to net loss of $374 million in the prior-year period primarily due to impairment losses recognized in the prior-year period and stronger mine operating margins resulting from higher realized gold prices in the current period, partially offset by losses on derivative financial instruments and higher income and mining tax expenses in the current period
- Full Year 2024 – Net income of $1,896 million decreased compared to the prior year net income of $1,941 million primarily due to the remeasurement gain at Canadian Malartic in the prior year and higher income and mining tax expenses and losses on derivative financial instruments in the current period, partially offset by higher operating margins from higher realized gold prices and higher sales volumes in the current period. The remeasurement gain in the prior year 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
- Fourth 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 lower general and administrative expenses
- Full Year 2024 – Adjusted EBITDA increased when compared to the prior year primarily due to stronger mine operating margins from higher realized gold prices and higher gold sales
Cash Provided by Operating Activities
- Fourth Quarter and Full Year 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
- Fourth Quarter and Full Year 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
The following table sets out a summary of capital expenditures (including sustaining capital expenditures and development capital expenditures) and capitalized exploration in the fourth quarter and the full year 2024.
Summary of Capital Expenditures*
($ thousands)
Capital Expenditures** Capitalized Exploration Three Months Three Months Year Ended Year Ended Ended Ended Dec 31, 2024 Dec 31, 2024 Dec 31, 2024 Dec 31, 2024 Sustaining Capital Expenditures
| LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 27,134 $ | 90,259 $ | 578 $ | 1,927 |
| Canadian Malartic . . . . . . . . . . . . . . . . . . | 35,649 | 127,536 | — | — |
| Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11,927 | 51,839 | (789) | 1,747 |
| Detour Lake . . . . . . . . . . . . . . . . . . . . . . . | 78,341 | 267,588 | — | — |
| Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . | 15,911 | 44,300 | 508 | 1,767 |
| Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . | 17,184 | 70,848 | 2,676 | 8,824 |
| Meadowbank . . . . . . . . . . . . . . . . . . . . . . | 20,226 | 91,944 | — | — |
| Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . | 18,015 | 40,313 | — | — |
| Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 17,234 | 69,047 | 873 | 2,054 |
| Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . | 11,034 | 29,224 | (4) | 1,658 |
| La India . . . . . . . . . . . . . . . . . . . . . . . . . . . | — | 22 | — | — |
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,611 | 7,131 | (264) | 725 |
| Total Sustaining Capital Expenditures . . $ | 256,266 $ | 890,051 $ | 3,578 $ | 18,702 |
Development Capital Expenditures
| LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 22,246 $ | 83,414 $ | — $ | — | ||
| Canadian Malartic . . . . . . . . . . . . . . . . . . | 68,461 | 189,489 | 2,068 | 5,770 | ||
| Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3,970 | 12,856 | 1,518 | 1,518 | ||
| Detour Lake . . . . . . . . . . . . . . . . . . . . . . . | 83,912 | 205,185 | 3,833 | 29,983 | ||
| Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . | 29,792 | 91,800 | 7,691 | 32,916 | ||
| Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . | 14,156 | 72,320 | 1,786 | 10,480 | ||
| Meadowbank . . . . . . . . . . . . . . . . . . . . . . | 3,286 | 3,266 | — | — | ||
| Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . | 11,054 | 38,070 | 2,161 | 11,658 | ||
| Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 1,591 | 4,562 | 1,553 | 7,283 | ||
| Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . | 1,572 | 3,378 | 7 | 21 | ||
| San Nicolás (50%) . . . . . . . . . . . . . . . . . | 3,770 | 18,847 | — | — | ||
| Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 20,632 | 44,179 | 30,942 | 65,212 | ||
| Total Development Capital Expenditures $ | 264,442 $ | 767,366 $ | 51,559 $ | 164,841 | ||
| Total Capital Expenditures . . . . . . . . . . $ | 520,708 $ | 1,657,417 $ | 55,137 $ | 183,543 |
*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.
**Excludes capitalized exploration
Strong Free Cash Flow Generation Enabled Debt Repayment Ahead of Maturity to Continue Strengthening the Balance Sheet
Cash and cash equivalents decreased by $51 million when compared to the prior quarter primarily due to $325 million repayment of debt and higher cash used in investing activities resulting from higher capital expenditures, partially offset by higher cash provided by operating activities as a result of higher revenues from higher realized gold prices.
As at December 31, 2024, the Company's total long-term debt was $1,143 million, a reduction of $324 million from the third quarter of 2024. The outstanding balance of $325 million on the $600 million term loan facility was repaid during the quarter in advance of scheduled maturity in April 2025, further strengthening the Company's investment grade balance sheet. For the full year 2024, a total of $700 million of debt was repaid. No amounts were outstanding under the Company's unsecured revolving bank credit facility as at December 31, 2024, and available liquidity under the facility remained at approximately $2 billion, not including the uncommitted $1 billion accordion feature.
The following table sets out the calculation of net debt, which decreased by $273 million when compared to the prior quarter as a result of the early debt repayment, partially offset by a decrease in cash and cash equivalents. For the full year 2024, net debt decreased by $1,287 million, from $1,504 million at the beginning of the year to $217 million as at December 31, 2024.
Net Debt Summary
($ millions)
| As at | As at | As at | |
|---|---|---|---|
| Dec 31, 2024 Sep 30, 2024 | Dec 31, 2023 | ||
| Current portion of long-term debt . . . . . . . . . . . . . . . . . $ | 90 $ | 415 $ | 100 |
| Non-current portion of long-term debt . . . . . . . . . . . . . | 1,053 | 1,052 | 1,743 |
| Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 1,143 $ | 1,467 $ | 1,843 |
| Less: cash and cash equivalents . . . . . . . . . . . . . . . . . | (926) | (977) | (339) |
| Net debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ | 217 $ | 490 $ | 1,504 |
Hedges
Based on the Company’s currency assumptions used for 2025 cost estimates: approximately 54% of the Company's total estimated Canadian dollar exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements below 1.37 C$/US$, while allowing for participation in respect of exchange rate movements up to an average of 1.42 C$/US$, approximately 30% of the Company's total estimated Euro exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements above 1.09 US$/EUR, while allowing for participation in respect of exchange rate movements down to an average of 1.05 US$/EUR, approximately 43% of the Company's total estimated Australian dollar exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements below 1.49 A$/US$, while allowing for participation in respect of exchange rate movements up to an average of 1.62 A$/US$, and approximately 33% of the Company's total estimated Mexican peso exposure for 2025 is hedged at an average floor price providing protection in respect of exchange rate movements below 19.50 MXP/US$, while allowing for participation in respect of exchange rate movements up to an average of 23.00 MXP/US$. The Company's full year 2025 cost guidance is based on assumed exchange rates of 1.38 C$/US$, 1.08 US$/EUR, 1.50 A$/US$ and 20.00 MXP/US$.
Including the diesel purchased for the Company's Nunavut operations that was delivered as part of the 2024 sealift, approximately 61% of the Company's estimated diesel exposure for 2025 is hedged at an average benchmark price of $0.73 per litre (excluding transportation and taxes), which is expected to reduce the Company's exposure to diesel price volatility in 2025. The Company's full year 2025 cost guidance is based on an assumed diesel benchmark price of $0.78 per litre (excluding transportation and taxes).
Based on these 2025 hedge positions, the Company expects to continue to benefit from the positive foreign exchange impact on all its operating currencies when compared to 2025 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 2025. Current hedging positions are not factored into 2025 or future guidance.
Shareholder Returns
Dividend Record and Payment Dates for the First Quarter of 2025
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on March 14, 2025 to shareholders of record as of February 28, 2025. Agnico Eagle has declared a cash dividend every year since 1983.
Expected Dividend Record and Payment Dates for the 2025 Fiscal Year
| Record Date | Payment Date |
| February 28, 2025* | March 14, 2025* |
| May 30, 2025 | June 16, 2025 |
| September 2, 2025 | September 15, 2025 |
| December 1, 2025 | December 15, 2025 |
*Declared
Dividend Reinvestment Plan
For information on the Company's dividend reinvestment plan, 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 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 fourth quarter of 2024, the Company repurchased 248,700 common shares for an aggregate of $20 million through the NCIB. During the year ended December 31, 2024, the Company repurchased 1,749,086 common shares for an aggregate of $120 million under the NCIB and the Company's NCIB for the prior period, at an average share price of $68.54.
Fourth Quarter 2024 Sustainability Highlights
- Sean Boyd Inducted into the Canadian Mining Hall of Fame – In January 2025, Sean Boyd, Chair of the Board and retired long-time CEO, was recognized for his role in growing Agnico Eagle from a market capitalization of C$0.4 billion to C$55 billion, and for his notable contributions to the mining sector and communities
- Health and Safety – The Company strives to maintain high health and safety standards. In 2024, multiple sites, and the global exploration team, achieved records for safety performance resulting in a strong global safety performance and an annual Global Combined Injury Frequency Rate of 2.45 (employees and contractors per 1 million hours worked)
- Employee Engagement – The Company continued to see year-over-year increases in employee satisfaction as measured in the Great Place to Work ® survey. The Company believes employee satisfaction and engagement are key drivers of its high employee retention rate across the regions where it operates
- Province of Ontario's Skills Development Fund – The Company received a C$10 million grant to provide a comprehensive skills development program to support the availability of a qualified workforce in the mining industry. Agnico Eagle will use this funding to continue leading workforce development initiatives in Northern Ontario
- Matachewan First Nation Health Care Centre Grand Opening – The Company was proud to join the Matachewan First Nation as a sponsor as they celebrated the grand opening of their new health care centre Mino-Bimaadiziwin, meaning "a good life"
- Impact Benefit Agreement with Beaverhouse First Nation – The Company signed the Macassa-Amalgamated Kirkland Impact Benefit Agreement with Beaverhouse First Nation, formalizing a sustainable partnership built on collaboration, respect and shared progress. This agreement reflects the Company’s commitment by fostering genuine partnerships that benefit both the community and its operations
- Recognized as a Socially Responsible Company for the 9th consecutive year – The Sonoran Business Foundation honored Agnico Sonora, which operates La India, for achieving the Socially Responsible Company distinction for the ninth consecutive year. The La India mine has been an integral part of the community since 2011
- Forbes' Canada's Best Employers – The Company was recognized on the list for the 3rd consecutive year, which is an annual ranking based on employees and other professionals recommending the Company as a desirable employer
Gold Mineral Reserves – Up 1% Year-Over-Year to Record 54.3 Moz at Year-End 2024
At December 31, 2024, the Company's proven and probable mineral reserve estimate totalled 54.3 million ounces of gold (1,277 million tonnes grading 1.32 g/t gold). This represents a 0.9% (0.47 million ounce) increase in contained ounces of gold compared to the proven and probable mineral reserve estimate of 53.8 million ounces of gold (1,287 million tonnes grading 1.30 g/t gold) at year-end 2023 (see the Company's news release dated February 15, 2024 for details regarding the Company's December 31, 2023 proven and probable mineral reserve estimate).
The year-over-year increase in mineral reserves at December 31, 2024 is largely due to a substantial mineral reserve addition at Upper Beaver and Wasamac and an aggregate replacement of approximately 70% of mineral reserves at Fosterville, Macassa, Meliadine, Amaruq and LaRonde.
Mineral reserves were calculated using a gold price of $1,450 per ounce for most operating assets, with exceptions that include: Detour Lake open pit using $1,400 per ounce; Amaruq using $1,650 per ounce; Pinos Altos using $1,800 per ounce; and variable assumptions for some other pipeline projects, including Wasamac using $1,650 per ounce. See "Assumptions used for the December 31, 2024 mineral reserve and mineral resource estimates reported by the Company" below for more details.
Gold Mineral Resources – Increase in Inferred Mineral Resources
At December 31, 2024, the Company's measured and indicated mineral resource estimate totalled 43.0 million ounces of gold (1,167 million tonnes grading 1.14 g/t gold). This represents a 2.3% (1.0 million ounce) decrease in contained ounces of gold compared to the measured and indicated mineral resource estimate at year-end 2023 (see the Company's news release dated February 15, 2024 for details regarding the Company's December 31, 2023 measured and indicated mineral resource estimate).
The year-over-year decrease in measured and indicated mineral resources is primarily due to the upgrade of mineral resources at Upper Beaver and Wasamac to mineral reserves, largely offset by the successful conversion of inferred mineral resources into measured and indicated mineral resources at Detour Lake underground, East Malartic, Upper Beaver, Hope Bay and other sites.
At December 31, 2024, the Company's inferred mineral resource estimate totalled 36.2 million ounces of gold (451 million tonnes grading 2.49 g/t gold). This represents a 9.5% (3.1 million ounce) increase in contained ounces of gold compared to the inferred mineral resource estimate a year earlier (see the news release dated February 15, 2024 for details regarding the Company's December 31, 2023 inferred mineral resource estimate).
The year-over-year increase in inferred mineral resources is primarily due to exploration drilling success at Detour Lake underground, East Gouldie, Hope Bay, Meliadine, Fosterville and Macassa.
For detailed mineral reserves and mineral resources data, including the economic parameters used to estimate the mineral reserves and mineral resources, see "Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2024)" and "Assumptions used for the December 31, 2024 mineral reserve and mineral resource estimates reported by the Company" below, as well as the Company's exploration news release dated February 13, 2025.
Update on Key Value Drivers and Pipeline Projects
Odyssey
In the fourth quarter of 2024, ramp development continued to progress ahead of schedule, and as at December 31, 2024, the main ramp reached a depth of 912 metres and the ramp towards the mid-shaft loading station reached a depth of 945 metres. Additionally, the Company continued to develop the main ventilation system on Level 54 between Odyssey South and East Gouldie and expects to begin excavating the first air raise for East Gouldie in the second quarter of 2025.
In the fourth quarter of 2024, shaft sinking activities set a record quarterly performance, progressing at a rate of 2.15 metres per day, and, as at December 31, 2024, the shaft reached level 102, the top of the midshaft loading station, at a depth of 1,026 metres. The design of the mid-shaft loading station between levels 102 and 114 is in progress. This station will include a crushing and material handling circuit 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 first quarter of 2025 and continue through the remainder of the year.
Construction progressed on schedule and on budget in the fourth quarter of 2024. At the main hoist building, the rope installation for the service hoist was completed in the fourth quarter of 2024. The construction of the temporary loading station on Level 64 progressed according to plan and the service hoist is now expected to be commissioned in the first quarter of 2025, providing a hoisting capacity of 3,500 tpd. In the fourth quarter, the foundations of the main office and service building were completed and the structural steel installation is ongoing. The construction of the main office building is expected to be finished by the first quarter of 2026.