Agnico Eagle Reports Second Quarter 2024 Results – Third Consecutive Quarter of Record Free Cash Flow Underpinned BY Consistent, Strong Operational and Cost Performance; Upper Beaver Project Study Shows Solid Risk-Adjusted
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations
(416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS SECOND QUARTER 2024 RESULTS – THIRD CONSECUTIVE QUARTER
OF RECORD FREE CASH FLOW UNDERPINNED BY CONSISTENT, STRONG OPERATIONAL AND
COST PERFORMANCE; UPPER BEAVER PROJECT STUDY SHOWS SOLID RISK-ADJUSTED
RETURNS
Toronto (July 31, 2024) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") today reported financial and operating results for the second quarter of 2024.
"We continue to deliver strong and reliable operational results which, combined with higher gold prices,
drove record operating margin and free cash flow for the third consecutive quarter. As a result of the
excellent performance of our operations through the first half of 2024, we are highly confident we will
achieve our full year production and cost guidance," said Ammar Al-Joundi, Agnico Eagle's President and
Chief Executive Officer. "We generated over half of a billion dollars of free cash flow in the second quarter,
supporting a significant strengthening of our balance sheet and increased returns to shareholders. We
continue to take a measured approach advancing key pipeline projects that show strong risk-adjusted
returns, such as the Detour Lake underground and Upper Beaver projects. Our focus remains on capital
discipline and cost control to ensure that the benefits of higher gold prices accrue to our shareholders
through strengthening our financial position and increasing shareholder returns," added Mr. Al-Joundi.
Second quarter 2024 highlights:
• Strong quarterly gold production – Payable gold production 1 was 895,838 ounces at production
costs per ounce of $862, total cash costs per ounce 2 of $870 and all-in sustaining costs ("AISC")
per ounce 2 of $1,169. Gold production was led by strong production at Canadian Malartic,
LaRonde and Fosterville
1
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 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 income 3 – The Company reported quarterly net income of $472.0
million or $0.95 per share and adjusted net income of $535.3 million or $1.07 per share
• Record quarterly cash provided by operating activities and free cash flow – The Company
generated record cash provided by operating activities of $961.3 million or $1.92 per share ($986.2
million or $1.97 per share before changes in non-cash working capital balances 4) and free cash
flow4 of $557.2 million or $1.12 per share ($582.2 million or $1.17 per share before changes in non-
cash working capital balances4)
• Strengthening investment grade balance sheet and financial flexibility – The Company
increased its cash position by $397.4 million to $922.0 million and significantly reduced net debt as
at June 30, 2024. Subsequent to quarter-end, the Company repaid the $100.0 million 5.02% Series
B senior notes at maturity and repaid $150.0 million of the $600.0 million unsecured term loan
facility drawn in 2023
• 2024 gold production and cost guidance reiterated – Full year expected payable gold
production remains unchanged at approximately 3.35 to 3.55 million ounces in 2024, with total
cash costs per ounce and AISC per ounce in 2024 unchanged at $875 to $925 and $1,200 to
$1,250, respectively. Total capital expenditures (excluding capitalized exploration) for 2024 are still
estimated to be between $1.6 billion to $1.7 billion. Capitalized exploration is now expected to be
approximately $187 million for the full year 2024. Further details are set out in the "2024 Guidance"
section below
• Update on key value drivers and pipeline projects
◦ Approval of measured investments over next three years to further evaluate and de-
risk the Detour Lake underground and Upper Beaver projects – Based on internal
studies indicating solid risk-adjusted returns for the Detour Lake underground and Upper
Beaver projects 5, the Company has adopted a measured approach to advance these
projects, approving $100.0 million and $200.0 million investments, respectively, over
approximately three years. At Detour Lake, a 2.0-kilometre exploration ramp is expected to
be developed to a depth of 270 metres to collect a bulk sample and to facilitate infill and
expansion drilling of the current und erground mineral resource. At Upper Beaver, an
exploration ramp and an exploration shaft are expected to be developed to a depth of 250
metres and 760 metres, respectively, to establish underground drilling platforms and collect
bulk samples
▪ Detour Lake – In June 2024, the Company released the results of a technical
study reflecting the potential for a concurrent underground operation at Detour
Lake that would accelerate access to higher grade ore and increase annual
production to approximately one million ounces for 14 years starting in 2030 (see
the Company's news release dated June 19, 2024). In t he second quarter of 2024,
with the replacement of the defective grinding media at the SAG mill and record
quarterly mill availability of 93.0%, mill throughput improved to 74,637 tonnes per
day ("tpd") and is expected to reach the target rate of 76,700 tpd by the end of
2024
2
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 The forecast parameters surrounding the technical study for the Detour Lake underground project and the internal evaluation for the
Upper Beaver project were based on a preliminary economic assessment, which is preliminary in nature and includes inferred mineral
resources. For further detail, refer to the Company's news release dated June 19, 2024 for the Detour Lake underground project and
the Update on Key Value Drivers and Pipeline Projects section set our below for the Upper Beaver project.
▪ Upper Beaver – A positive internal evaluation was completed in June 2024 for a
standalone mine and mill scenario at Upper Beaver. Based on this evaluation, the
Company believes Upper Beaver has the potential to produce an annual average
of approximately 210,000 ounces of gold and 3,600 tonnes of copper, with initial
production possible as early as 2030. Over an expected 13-year mine life, total
payable gold and copper production is expected to be approximately 2.8 million
ounces and 46,300 tonnes, respectively. Estimated total cash costs per ounce on a
by-product basis and AISC per ounce on a by-product basis are expected to be
approximately $592 and $733, resp ectively. In addition, the project has the
potential to unlock significant exploration potential at depth and within satellite
deposits in the Company's Kirkland Lake camp
▪ Odyssey mine at Canadian Malartic – At Odyssey South, record quarterly mining
rates and gold production were achieved at approximately 3,750 tpd and 22,300
ounces of gold, respectively. In the second quarter of 2024, ramp development
continued to exceed the Company's target, reaching the third production level at
East Gouldie at a depth of 832 metres as at June 30, 2024. Shaft sinking
advanced at an average rate of 2.5 metres per day and reached a depth of 680
metres as at June 30, 2024. Surface construction is progressing as planned, with a
focus on the main hoist building, phase two of the paste plant and the operations
complex
• Approval of a supplemental exploration budget of $50.0 million – The Company's exploration
program returned positive results in the first half of 2024 at Canadian Malartic, Detour Lake and
Hope Bay, showing excellent potential to identify additional mineral resources. These results
support increased budgets approved by the Company for the second half of 2024.
◦ East Gouldie at Odyssey mine – Recent exploration drilling continued to return good
results in the eastern and western extensions of the East Gouldie deposit including 4.5
grams per tonne ("g/t") gold over 6.5 metres at 1,571 metres depth approximately 770
metres east of the current mineral reserves and 2.5 g/t gold over 30.0 metres at 1,473
metres depth and 85 metres west of the current mineral reserves. The results from the
ongoing exploration program are anticipated to have a positive impact on the mineral
resource estimate at year-end 2024
◦ Detour Lake underground – Infill drilling into the high-grade corridor in the West Pit zone
continued to confirm the higher grades and mineralized structure amenable to
underground mining. Highlights include 4.0 g/t gold over 22.3 metres at 413 metres depth
and 4.4 g/t gold over 30.1 metres at 550 metres depth. Near the proposed exploration
ramp, highlights include 20.6 g/t gold over 5.5 metres at 280 metres depth and 4.7 g/t gold
over 15.6 metres at 313 metres depth
◦ Madrid at Hope Bay – Exploration drilling during the second quarter of 2024 totalled
35,400 metres and continued to return strong results from infill drilling north of the Patch 7
mineral resources, including 17.0 g/t gold over 25.8 metres at 419 metres depth, 7.2 g/t
gold over 8.1 metres at 559 metres depth and 5.3 g/t gold over 18.0 metres at 278 metres
depth, further confirming the greater thicknesses and higher gold grades in this area
compared to the rest of the Madrid deposit
• Reconciliation Action Plan and 2023 Climate Action Report published – On July 10, 2024, the
Company released its first Reconciliation Action Plan, reinforcing its commitment to reconciliation
with Indigenous Peoples and communities. In addition, on July 31, 2024, the Company released its
2023 Climate Action Report. In line with the recommendations of the Task Force on Climate-related
Financial Disclosures and Towards Sustainable Mining Climate Change protocol, the 2023 Climate
Action Report outlines how the Company is addressing climate change risks and opportunities
• Continued focus on shareholder returns – In the second quarter of 2024, the board of directors
declared a quarterly dividend of $0.40 per share. In the second quarter of 2024, the Company also
3
repurchased 763,043 common shares at an average share price of $65.53 for an aggregate of
$50.0 million through its normal course issuer bid ("NCIB"), which was renewed in May 2024
Second Quarter 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Thursday, August 1, 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 website at
www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.764.8659 or toll-free 1.888.664.6392 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 416.764.8677 or toll-free 1.888.390.0541, access code 576159#. The conference call replay
will expire on September 1, 2024.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Second Quarter 2024 Production and Cost Results
Production and Cost Results Summary*
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 2023 2024 2023
Gold production (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895,838 873,204 1,774,490 1,686,017
Gold sales (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 874,230 858,848 1,753,293 1,646,406
Production costs per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 862 $ 851 $ 877 $ 828
Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 870 $ 840 $ 885 $ 836
AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,169 $ 1,150 $ 1,179 $ 1,138
* 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
• Second Quarter of 2024 – Gold production increased when compared to the prior-year period
primarily due to higher production from Meadowbank and Macassa, partially offset by lower
production at Fosterville
• First Six Months of 2024 – Gold production increased when compared to the prior-year period as a
result of the additional production from the acquisition of the remaining 50% of Canadian Malartic,
contribution from Odyssey in the current year and increased production from Meadowbank,
partially offset by lower production at Fosterville
4
Production Costs per Ounce
• Second Quarter and First Six Months of 2024 – Total production costs per ounce increased when
compared to the prior-year periods primarily due to higher royalties mainly arising from higher gold
prices and higher production costs at Canadian Malartic related to underground mining operations,
partially offset by higher gold production during the period
Total Cash Costs per Ounce
• Second Quarter and First Six 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 combined with the impact of lower gold grades at Fosterville, partially
offset by higher gold production during the period
AISC per Ounce
• Second 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, partially offset by higher production and
slightly lower sustaining capital expenditures during the period
• First Six Months of 2024 – AISC per ounce increased when compared to the prior-year period due
to the factors causing higher total cash costs per ounce and higher sustaining capital expenditures,
partially offset by higher gold production during the period
5
Second Quarter 2024 Financial Results
Financial Results Summary
Three Months Ended
June 30,
Six Months Ended
June 30,
2024 20236 2024 20236
Realized gold price ($/ounce)7
. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,342 $ 1,975 $ 2,202 $ 1,935
Net income ($ millions)8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 472.0 $ 323.7 $ 819.2 $ 2,140.6
Adjusted net income ($ millions) . . . . . . . . . . . . . . . . . . . . . . . . . $ 535.3 $ 319.3 $ 912.7 $ 590.5
EBITDA ($ millions)9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,123.1 $ 883.4 $ 2,005.6 $ 3,156.3
Adjusted EBITDA ($ millions)9
. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,176.2 $ 885.2 $ 2,105.5 $ 1,625.6
Cash provided by operating activities ($ millions) . . . . . . . . . . $ 961.3 $ 722.0 $ 1,744.5 $ 1,371.6
Cash provided by operating activities before changes in non-
cash working capital balances ($ millions) . . . . . . . . . . . . . . . . . $ 986.2 $ 693.0 $ 1,763.3 $ 1,301.8
Capital expenditures10
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 407.3 $ 416.0 $ 779.3 $ 757.8
Free cash flow ($ millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 557.2 $ 298.4 $ 952.8 $ 563.1
Free cash flow before changes in non-cash working capital
balances ($ millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 582.2 $ 269.4 $ 971.6 $ 493.3
Net income per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.95 $ 0.66 $ 1.64 $ 4.45
Adjusted net income per share (basic) . . . . . . . . . . . . . . . . . . . . $ 1.07 $ 0.65 $ 1.83 $ 1.23
Cash provided by operating activities per share (basic) . . . . . $ 1.92 $ 1.46 $ 3.50 $ 2.85
Cash provided by operating activities before changes in non-
cash working capital balances per share (basic) . . . . . . . . . . . $ 1.97 $ 1.40 $ 3.54 $ 2.70
Free cash flow per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.12 $ 0.60 $ 1.91 $ 1.17
Free cash flow before changes in non-cash working capital
balances per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.17 $ 0.55 $ 1.95 $ 1.02
Net Income
• Second Quarter of 2024
◦ Net income was $472.0 million ($0.95 per share). This result includes the following items
(net of tax): non-recurring tax adjustment s and foreign currency translation losses on
deferred tax liabilities of $25.7 million ( $0.05 per share ), derivative losses on financial
instruments of $14.4 million ($0.03 per share ), net asset disposals losses of $11.5 million
($0.02 per share) and foreign exchange and other losses of $11.7 million ($0.02 per share)
◦ Excluding the above items results in adjusted net income of $535.3 million or $1.07 per
share
◦ 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 $472.0 million in the second quarter of 2024 increased compared to net
income of $323.7 million in the prior-year period primarily due to stronger mine operating
6
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.
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.
margins11 resulting from higher realized gold prices and higher sales volumes, partially
offset by losses on derivative financial instruments in the current period, and higher income
and mining tax expenses
• First Six Months of 2024 – N et income of $819.2 million decreased compared to the prior-year
period primarily due to a remeasurement gain at Canadian Malartic in the prior period resulting
from the application of purchase accounting relating to a business combination attained in stages,
which requires the remeasurement of the Company's previously held 50% interest in Canadian
Malartic to fair value, partially offset by higher realized gold prices and higher sales volumes
Adjusted EBITDA
• Second Quarter of 2024 – Adjusted EBITDA increased when compared to the prior-year period
primarily due to stronger mine operating margins from hi gher realized gold prices and higher sales
volumes
• First Six Months of 2024 – Adjusted EBITDA increased when compared to the prior-year period
primarily due to the reasons set out above for net income and as a result of the acquisition of the
remaining 50% of Canadian Malartic
Cash Provided by Operating Activities
• Second Quarter and First Six 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
• Second Quarter and First Six Months of 2024 – Free cash flow before changes in non-cash
working capital balances was a record for the third consecutive quarter and increased when
compared to the prior-year periods due to the reasons described above related to cash provided by
operating activities, as well as lower additions to property, plant and mine development
Capital Expenditures
In the second quarter of 2024, capital expenditures were $362.4 million and capitalized exploration
expenditures were $44.9 million, for a total of $407.3 million. Expected capital expenditures (excluding
capitalized exploration) remain in line with guidance for the full year 2024. As a result of the supplemental
exploration budget approved of $50.0 million and the approval of the exploration ramp construction at
Detour Lake and the exploration ramp and exploration shaft construction at Upper Beaver, capitalized
exploration is expected to increase to approximately $186.8 million 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 12
and development capital expenditures 12) and capitalized exploration in the second quarter of 2024 and the
first six months of 2024.
7
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”
below.
12 Sustaining capital expenditures and development capital expenditures are non-GAAP measures that are not standardized financial
measures under IFRS. For a discussion of the composition and usefulness of these non-GAAP measures and a reconciliation to
additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding
Certain Measures of Performance" below.
Jun 30, 2024 Jun 30, 2024 Jun 30, 2024 Jun 30, 2024
Sustaining Capital Expenditures
LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,899 $ 43,823 $ 557 876
Canadian Malartic . . . . . . . . . . . . . . . . . . 28,053 55,098 — —
Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,354 23,407 1,045 1,783
Detour Lake . . . . . . . . . . . . . . . . . . . . . . . 61,971 111,609 — —
Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . 6,058 16,189 408 808
Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . 16,083 33,948 2,490 3,827
Meadowbank . . . . . . . . . . . . . . . . . . . . . . 21,560 41,502 — —
Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . 7,306 12,789 — —
Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,212 34,276 415 865
Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . 6,102 11,091 617 920
La India . . . . . . . . . . . . . . . . . . . . . . . . . . . — 22 — —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,940 2,269 270 845
Total Sustaining Capital Expenditures . . $ 199,538 $ 386,023 $ 5,802 $ 9,924
Development Capital Expenditures
LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,637 $ 44,726 $ — —
Canadian Malartic . . . . . . . . . . . . . . . . . . 43,199 79,204 874 2,192
Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,925 7,056 — —
Detour Lake . . . . . . . . . . . . . . . . . . . . . . . 31,315 69,074 9,547 17,099
Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . 22,312 34,458 9,386 17,704
Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . 18,849 37,094 2,720 6,806
Meadowbank . . . . . . . . . . . . . . . . . . . . . . — (27) — —
Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . 9,186 18,614 3,342 6,966
Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,288 2,196 2,428 4,559
Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . 806 1,452 — 4
San Nicolás project . . . . . . . . . . . . . . . . . 6,284 11,655 — —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,051 8,016 10,813 14,525
Total Development Capital Expenditures $ 162,852 $ 313,518 $ 39,110 $ 69,855
Total Capital Expenditures . . . . . . . . . . $ 362,390 $ 699,541 $ 44,912 $ 79,779
Summary of Capital Expenditures
($ thousands)
Capital Expenditures* Capitalized Exploration
Three Months
Ended
Six Months
Ended
Three Months
Ended
Six Months
Ended
* Excludes capitalized exploration
2024 Guidance
Production and Cost Guidance
Full year guidance remains unchanged at approximately 3.35 to 3.55 million ounces of gold, total cash
costs per ounce of $875 to $925 and AISC per ounce of $1,200 to $1,250.
Capital Expenditure Guidance
Total expected capital expenditures (excluding capitalized exploration) for 2024 are still estimated to be
between $1.6 billion to $1.7 billion.
8