Agnico Eagle Reports Fourth Quarter and Full Year 2023 Results – Record Quarterly and Annual GOLD Production and Free Cash Flow; Record Mineral Reserves Increased 10.5%; Updated Three-Year Guidance
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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 2023 RESULTS – RECORD
QUARTERLY AND ANNUAL GOLD PRODUCTION AND FREE CASH FLOW; RECORD MINERAL
RESERVES INCREASED 10.5%; UPDATED THREE-YEAR GUIDANCE
Toronto (February 15, 2024) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or
the "Company") today reported fi nancial and operating r esults for the fourth quarter and full year of 2023,
as well as future operating guidance.
"We had a very strong close to 2023, with our fourth quarter results driving a record year in terms of safety,
operating and financial performance. We achieved the top end of our gold production guidance range and
the mid-point of our cost guidance ranges despite inflationary pressures throughout the year," said Ammar
Al-Joundi, A gnico Eagle's President and Chief Executive Officer. "We are extremely pleased with the
results that our teams have accomplished with their hard work this year and we have much to look forward
to. We are reporting record mineral reserves and a stable production profile at industry leading costs,
anchored by the two largest gold operations in Canada, the Detour Lake mine and the Canadian Malartic
complex. We continue to advance studies on optimizing our Abitibi platform and we expect to provide
additional up dates in the first half of 2024. Our track record of executing and delivering results
demonstrates the strength of our business and we are well positioned to create long- term value and
generate strong returns," added Mr. Al-Joundi.
Fourth quarter and full year 2023 highlights:
• Record quarterly gold production – Payable gold production 1 in the fourth quarter of 2023 was
903,208 ounces at production costs per ounce of $861, total cash costs per ounce 2 of $888 and
all-in sustaining costs ("AISC") per ounce 3 of $1,227. Gold production in the fourth quarter of 2023
was led by strong production at the Detour Lake mine, the LaRonde complex and the Macassa
mine, offsetting lower production at the Fosterville mine
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 produced basis, and (ii) a by -product basis. For a description of the
composition and use fulness 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 rel ease, unless
otherwise specified, is reported on (i) a per ounce of gold produced 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.
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• Record quarterly cash provided by operating activities and free cash flow – The Company
reported a quarterly net loss of $381.0 million or $0.77 per share and adjusted net income 4 of
$282.3 million or $0.57 per share for the fourth quarter of 2023. Included in the quarterly net loss
are impairment charges totaling $667 million (net of tax) or $1.35 per share relating to the Macassa
and Pinos Altos mines. Cash provided by operating activities was $1.47 per share ($1.57 per share
before work ing capital adjustments 5) and free cash flow 5 was $0.61 per share ( $0.71 per share
before working capital adjustments5)
• Record annual safety performance, an nual gold production and free cash flow driven by
solid operational performance – Payable gold production in 2023 was 3,439,654 ounces at
production costs per ounce of $853 , total cash costs per ounce of $865 and AISC per ounce of
$1,179. Production for 2023 was at the very top end of the Company's 2023 guidance range of
3.24 million ounces to 3.44 million ounces. Total cash costs per ounce were at the midpoint of the
Company's 2023 guidance and AISC per ounce were in the range of the Company's 2023
guidance. Free cash flow for the full year 2023 was $947.4 million ($1,093.8 million before changes
in non-cash components of working capital)
• Record gold mineral reserves driven by declaration of initial mineral reserves at East
Gouldie – Year-end 2023 gold mineral reserves increased by 10.5% to 53.8 million ounces of gold
(1,287 million tonnes grading 1.30 grams per tonne ("g/t") gold). The year -over-year increase in
mineral reserves is largely due to the declaration of initial mineral reserves at East Gouldie, the
acquisition of the remaining 50% interest in the Canadian Malartic complex and net mineral reserve
additions at Macassa. At year -end 2023, measured and indicated mineral resources were 44.0
million ounces (1,189 million tonnes grading 1.15 g/t gold) an d inferred mineral resources were
33.1 million ounces (411 million tonnes grading 2.50 g/t gold), including initial underground inferred
mineral resources at Detour Lake. For further details, see the Company's exploration news release
dated February 15, 2024
• Stable three-year production outlook – Payable gold production is forecast to be approximately
3.35 to 3.55 million ounces in 2024 and approximately 3.40 to 3.60 million ounces in 2025
(unchanged from prior three- year guidance issued on February 16, 2023 ("Previous Guidance")).
Payable gold production is forecast to remain stable in 2026 at an expected range of approximately
3.40 to 3.60 million ounces
• Unit costs reflect easing rate of inflation – Total cash costs per ounce and AISC per ounce in
2024 are forecast to be $875 to $925 and $1,200 to $1,250, respectively. The midpoints of these
ranges each represent an approximate 4% increase when compared to the full year 2023 total
cash costs per ounce of $865 and AISC per ounce of $1,179. The expected cost increases in 2024
are mostly related to labour, spare parts and maintenance
• Capital expenditures forecast to be approximately $1.65 billion in 2024 – Capital expenditures
in 2024 (excluding capitalized exploration) are expected to increase relative to Prev ious Guidance
of $1.40 to 1.60 billion. The expected increase in 2024 is mostly attributable to 100% ownership of
Canadian Malartic for the full year, inflation and additional capital expenditures at Detour Lake
• Strategic optimization in itiatives improve C anadian production base, with further clarity on
the medium term potential to be provided through 2024 – Key developments in 2023 included
the declaration of commercial production at Canadian Malartic's Odyssey South deposit, a 12%
increase in mill through put at Detour Lake year -over-year and development of the Near Surface
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 working capital adjustments, free cash flow and free cash flow before changes in non-
cash components of working capital
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.
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("NSUR") and Amalgamated Kirkland ("AK") deposits at Macassa. The Company expects to
provide updates on additional opportunities that are being evaluated in the Abitib i region in the fir st
half of 2024
• Odyssey mine at the Canadian Malartic complex – The planned mining rate of 3,500
tonnes per day ("tpd") at Odyssey South was reached earlier than anticipated and
sustained through the fourth quarter of 2023. Ramp development has also exceeded
target, reaching a depth of 715 metres as at December 31, 2023. The Company is
evaluating the potential to accelerate initial production from East Gouldie to 2026 from
2027. Surface construction is progressing as planned, with approxi mately 65% complete d
at year-end, and shaft sinking activities continued to ramp up through the quarter. Infill and
expansion drilling in 2023 resulted in the declaration of an initial mineral reserve in the
central portion of the East Gouldie deposit of 5.17 million ounces of gold (47.0 million
tonnes grading 3.42 g/t gold) and the extension of the East Gouldie mineral resource
laterally by 870 metres
• Detour Lake – The mill delivered a strong performance in the fourth quarter of 2023,
operating at a throughput rate of 71,826 tpd (equivalent to an annualized rate of
approximately 26.2 million tonnes per annum ("Mtpa"). With sustained improvements year -
over-year, the Company now expects the mill to reach a throughput rate of approximately
76,700 tpd (equivalent to an annualized rate of approximately 28 Mtpa) late in the second
half of 2024, previously expected in 2025. At year -end 2023, the Company reported an
initial underground inferred mineral resource below and to the west of the existing pit,
totaling 1.5 6 million ounces of gold (21.8 million tonnes grading 2.23 g/t gold) and
continues to evaluate the potential for underground mining. Exploration in 2024 is expected
to continue to test the west plunge extension of the main deposit. An exploration ramp is
also being considered to facilitate drilling that would increase confidence in the continuity
of the inferred mineral resource and, potentially, to collect a bulk sample. The Company
expects to provide an update on mill optimization efforts, the Detour underground project
and ongoing exploration results in the first half of 2024
• Abitibi region of Quebec and Ontario – Macassa's NSUR and AK deposits have now
been incorporated in the Company's production guidance. At Upper Beaver, the Company
is conducting a trade- off analysis co mparing transporting and processing ore at the
LaRonde mill to a standalone central mill for Upper Beaver and satel lite deposits. An
exploration ramp and shaft are being considered at Upper Beaver in order to upgrade and
further explore the deeper portions of the deposit. At Wasamac, the Company is assessing
hauling alternatives and the optimal mining rate for transpor ting and processing ore at the
Canadian Malartic mill. The Company expects to complete internal technical evaluations
for Upper Beaver and Wasamac in the first half of 2024
• Amaruq mine at the Meadowbank complex – The Company extended Amaruq's mine
life to 2028 (previous mine life was to 2026), adding approximately 500,000 ounces of gold
to the expected mining profile, as a result of continuous improvement and cost optimization
efforts, positive infill drilling and positive reconciliation to the geological model
• Hope Bay – At the Madrid deposit, the target area in the gap between the Suluk and Patch
7 zones delivered strong drill results in the quarter, including 16.3 g/t gold over 28.6 metres
at 385 metres depth and 12.7 g/t gold over 4.6 metres at 677 metres depth. Results
confirm the potential to expand gold mineralization in the Madrid deposit at depth and
along strike to the south. Based on r ecent exploration success, the Company is evaluating
a larger potential production scenario for Hope Bay. The Company expects to report results
from this internal technical evaluation in 2025
• A quarterly dividend of $0.40 per share has been declared
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Fourth Quarter and Full Year 2023 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Friday, February 16, 2024 at 11:00 AM
(E.S.T.) to discuss the Company's fourth quarter and full year 2023 financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on the Company's website
www.agnicoeagle.com.
Via URL Entry:
To join the conference call without operator assistance, you may register and enter your phone number at
https://emportal.ink/3vf5XBm 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 178426#. The conference call replay
will expire on March 16, 2024.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
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Fourth Quarter 2023 Production and Cost Results
Production and Cost Results Summary*
Three Months Ended Year Ended
Dec 31, 2023 Dec 31, 2022 Dec 31, 2023 Dec 31, 2022
Gold production (ounces) 903,208 799,438 3,439,654 3,135,007
Gold sales (ounces) 874,629 788,902 3,364,132 3,148,593
Production costs per ounce $ 861 $ 834 $ 853 $ 843
Total cash costs per ounce $ 888 $ 863 $ 865 $ 793
AISC per ounce $ 1,227 $ 1,231 $ 1,179 $ 1,109
* Production and Cost Results Summary reflect: (i) Agnico Eagle's 50% interest in the Canadian Malartic complex up to and including
March 30, 2023 and 100% thereafter; and (ii) Agnico Eagle's acquisition of the Detour Lake, Macassa and Fosterville mines on
February 8, 2022.
Gold Production
• Fourth Quarter of 2023 – Gold production increased when compared to the prior year primarily due
to additional production from the acquisition of the remaining 50% of the Canadian Malartic
complex following the closing of the transaction with Yamana Gold Inc. (the "Yamana Transaction")
and higher production from the Macassa and Kittila mines, partially offset by lower production at
the Fosterville mine
• Full Year 2023 – Gold production increased when compared to the prior year as a result of the
additional production from the acquisition of the remaining 50% of the Canadian Malartic complex,
a full year of contribution in 2023 from the Detour Lake, Macassa and Fosterville mines (as
compared to 326 days during the year -ended 2022 following the closing of the merger ( the
"Merger") with Kirkland Lake Gold Ltd. on February 8, 2022) and increased production from the
Meadowbank complex, partially offset by lower production at the Fosterville mine and LaRonde
complex
Production Costs per Ounce
• Fourth Quarter of 2023 and Ful l Year 2023 – Production costs per ounce increased when
compared to the prior -year period primarily due to higher production costs at most mine sites
resulting from inflation, particularly at the Meliadine mine, where there was also higher
consumption of ore stockpiles combined with lower gold production, and at the Canadian Malartic
complex, where there were higher open pit mining costs combined with lower gold production
Total Cash Costs per Ounce
• Fourth Quarter of 2023 and Full Year 2023 – Total cash costs per ounce increased when compared
to the prior -year period primarily due to higher operating costs at most mine sites resulting from
inflation and higher royalties arising from higher gold prices and the acquisition of the remaining
50% of the Canadian Malartic complex, partially offset by higher production
AISC per Ounce
• Fourth Quarter of 2023 – AISC per ounce decreased when compared to the prior -year period due
to higher production during the period and lower sustaining capital expenditures during the period,
partially offset by higher total cash costs per ounce
• Full Year 2023 – AISC per ounce increased when compared to the prior year due to the same
reasons affecting the higher total cash costs per ounce in the period and higher sustaining capital
expenditures, partially offset by higher production during the period
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Fourth Quarter 2023 Financial Results
Financial Results Summary
Three Months Ended Year Ended
Dec 31, 2023 Dec 31, 2022** Dec 31, 2023 Dec 31, 2022
Realized gold price ($/ounce)6 $ 1,982 $ 1,728 $ 1,946 $ 1,797
Net (loss) income ($ millions) $ (381.0) $ 194.1 $ 1,941.3 $ 670.2
Adjusted net income ($ millions) $ 282.3 $ 174.5 $ 1,095.9 $ 1,003.6
EBITDA ($ millions)7 $ 102.6 $ 568.6 $ 3,980.9 $ 2,293.0
Adjusted EBITDA ($ millions)7 $ 842.5 $ 580.6 $ 3,236.5 $ 2,706.1
Cash provided by operating activities ($ millions) $ 727.9 $ 380.5 $ 2,601.6 $ 2,096.6
Cash provided by operating activities before
working capital adjustments ($ millions) $ 777.5 $ 485.5 $ 2,748.0 $ 2,115.9
Capital expenditures* $ 436.7 $ 457.2 $ 1,600.9 $ 1,536.9
Free cash flow ($ millions) $ 302.1 $ (20.3) $ 947.4 $ 558.4
Free cash flow before changes in non-cash
components of working capital ($ millions) $ 351.7 $ 84.7 $ 1,093.8 $ 577.6
Net (loss) income per share (basic) $ (0.77) $ 0.43 $ 3.97 $ 1.53
Adjusted net income per share (basic) $ 0.57 $ 0.38 $ 2.24 $ 2.29
Cash provided by operating activities per share
(basic) $ 1.47 $ 0.84 $ 5.32 $ 4.79
Cash provided by operating activities before
working capital adjustments per share (basic) $ 1.57 $ 1.07 $ 5.62 $ 4.83
Free cash flow per share (basic) $ 0.61 $ (0.04) $ 1.94 $ 1.28
Free cash flow before working capital
adjustments per share (basic) $ 0.71 $ 0.19 $ 2.24 $ 1.32
*Includes capitalized exploration
** Certain previously reported line items have been restated to reflect the final purchase price allocation of the Merger.
Net Income
• Fourth Quarter of 2023
◦ Net loss was $381.0 million ($0.77 per share). This result includes the following items (net
of tax): impairment losses of $667.4 million ($1.35 per share), derivative gains on financial
instruments of $50.7 million ($0.10 per share), non-recurring tax adjustment and change in
tax rate and foreign currency translation losses on deferred tax liabilities of $26.4 million
($0.05 per share), net asset disposals losses of $16.2 million ($0.03 per share) and foreign
exchange and other losses of $4.0 million ($0.01 per share)
◦ Excluding the above items results in adjusted net income of $282.3 million or $0.57 per
share for the fourth quarter of 2023
◦ Included in the fourth quarter of 2023 net loss, and not adjusted above, is a non-cash stock
option expense of $2.4 million ($0.01 per share)
6 Realized gold price is calculated as gold revenues from mining operations divided by the volume of gold ounces sold.
7 "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.
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◦ Net loss of $381.0 million in the fourth quarter of 2023 compared to net income of $194.1
million in the prior -year period primarily due to impairment losses and higher amortization
related to the acquisition of the remaining 50% of the Canadian Malartic complex, partially
offset by stronger mine operating margins 8 from higher realized gold prices and higher
sales volumes resulting from the acquisition of the remaining 50% of the Canadian Malartic
complex, and lower exploration and corporate development costs
• Full Year 2023 – Net income increased compared to the prior year primarily due to a
remeasurement gain at the Canadian Malartic complex resulti ng from the application of purchase
accounting re lating to a business combination attained in stages, which requires the
remeasurement of the Company's previously held 50% interest in the Canadian Malartic complex
to fair value, higher realized gold prices and higher sales volumes, partially offset by impairment
losses and higher amortization
Impairments
In the fourth quarter of 2023, an impairment loss (net of tax) of $667 million was incurred in connection with
the impairment review performed in accordance with the requirements of International Financ ial Reporting
Standards ("IFRS"), of which $594 million related to the Macassa mine and $73 million related to the Pinos
Altos mine. Since acquiring the Macassa mine as a result of the Merger, the Company has taken steps to
improve the operational performa nce of the mine. The Macassa mine realized better operating
performance and productivity in 2023 as compared to the pre- Merger period, driven in part, by the
completion of the #4 Shaft project that increased the ore hoisting capacity to approximately 4,000 tpd and
improvements to the ventilation in the deeper portion of the mine. Despite these improvements, an
impairment loss (net of tax) of $594 million was realized in the quarter, with $421 million of the loss relating
to goodwill and $173 million relating to non-current assets of the Macassa mine.
Goodwill relating to the Macassa mine was recognized at the date of the Merger as part of the purchase
price allocation. G oodwill is not an amortizable asset under IFRS and as such, once recognized is
susceptible to future impairment. Continued work on the mineral resource model has resulted in more ore
tonnes but at lower grades which, coupled with inflationary pressures on costs and capital expenditures,
resulted in a fair value that was lower than Macassa's c arrying value as at December 31, 2023. The
Macassa mine has produced over 6 million ounces of gold since 1933, and the Company continues to see
geological potential at Macassa as demonstrated by the mineral reserves replacement of 171% of its
mining deplet ion in 2023 and encouraging drill results on the property. In addition, the mineralized
structures along strike and at depth of the South Mine complex and Main Break ar e prospective for ongoing
expansion of the mineral resource base at the site. Overall, t he Company believes that the Macassa mine
has the potential to maintain production in excess of 300,000 ounces of gold per year based on expected
exploration results.
The Pinos Altos mine has been in operation since 2009 and is approaching the end of its mine life. An
impairment loss (net of tax) of $73 million was realized in the quarter due to inflationary pressures on costs
and the additional ground support required at the underground mine, and the strengthening of the Mexican
peso relative to the U.S. dollar. Exploration is ongoing with the goal of discovering and expanding other
satellite zones near the Pinos Altos mine.
Adjusted EBITDA
• Fourth Quarter of 2023 – 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
8 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.
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volumes resulting from the acquisition of the remaining 50% of the Canadian Malartic comp lex and
lower exploration and corporate development costs
• Full Year 2023 – Adjusted EBITDA increased when compared to the prior year primarily due to the
reasons set out above, and as a result of a full year of contribution in 2023 from the Detour Lake,
Macassa and Fosterville mines (as compared to 326 days during the year -ended 2022 following
the closing of the Merger)
Cash Provided by Operating Activities
• Fourth Quarter of 2023 – Cash provided by operating activities and cash provided by operating
activities before working capital adjustments increased when compared to the prior -year period
primarily due to higher revenues from higher sales volumes from the acquisition of the remaining
50% of the Canadian Malartic complex and higher realized gold prices, partially offset by higher
production costs
• Full Year 2023 – Cash provided by operating acti vities and cash provided by operating activities
before working capital adjustments increased when compared to the prior year primarily due to
higher revenues from the acquisition of the remaining 50% of the Canadian Malartic complex,
higher sales volumes from a full year of contribution in 2023 from the Detour Lake, Macassa and
Fosterville mines (as compared to 326 days during the year -ended December 31, 2022 following
the closing of the Merger) and from higher realized gold prices
Free Cash Flow Before Changes in Non-Cash Components of Working Capital
• Fourth Quarter of 2023 and Full Year 2023 – Free cash flow before changes in non- cash
components of working capital was a record and increased when compared to the prior -year period
due to the reasons described above relating to cash provided by operating activities , partially offset
by higher additions to property, plant and mine development