Agnico Eagle Reports Third Quarter 2024 Results – Record Free Cash Flow FOR the Fourth Consecutive Quarter; Balance Sheet Strengthened BY Further Debt Reduction; Well Positioned to Achieve GOLD Production and Cost Guidance
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations
(416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS THIRD QUARTER 2024 RESULTS – RECORD FREE CASH FLOW FOR
THE FOURTH CONSECUTIVE QUARTER; BALANCE SHEET STRENGTHENED BY FURTHER DEBT
REDUCTION; WELL POSITIONED TO ACHIEVE GOLD PRODUCTION AND COST GUIDANCE;
ONGOING EXPLORATION SUCCESS AT EXISTING OPERATIONS AND PIPELINE PROJECTS
Toronto (October 30, 2024) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or
the "Company") today reported financial and operating results for the third quarter of 2024.
"We are excited to report record financial results for a fourth consecutive quarter. Our focus on operational
performance, cost control and capital discipline has allowed us to deliver the leverage to record gold prices
to our shareholders. This quarter we repaid $375 million of debt, increased our cash position and continued
to provide strong returns to shareholders," said Ammar Al-Joundi, Agnico Eagle's President and Chief
Executive Officer. "We remain focused on realizing the full potential of our assets through continuous
improvement and by advancing our pipeline of projects and supplemental exploration program. Strong drill
results this quarter continue to demonstrate significant exploration upside at several of our mines and key
pipeline projects, including the extension of the East Gouldie deposit at Canadian Malartic and the
expansion of high-grade mineralization at Patch 7 at Hope Bay," added Mr. Al-Joundi.
Third quarter 2024 highlights:
• Solid quarterly gold production and cost performance – Payable gold production1 was 863,445
ounces at production costs per ounce of $908, total cash costs per ounce 2 of $921 and all-in
sustaining costs ("AISC") per ounce2 of $1,286
• Continued to deliver reliable operating and cost performance – Gold production and costs in
the third quarter of 2024 were in line with plan, driven by strong production in Nunavut and at
Macassa and Fosterville. The Company's continued focus on operational efficiencies and cost
optimization drove record quarterly throughput and mining rates at multiple sites
• Well positioned to achieve 2024 gold production, cost and capital expenditures guidance –
The Company is tracking well to meet its gold production guidance for the full year 2024. Total cash
costs per ounce, AISC per ounce and capital expenditures guidance for 2024 remain unchanged
1
1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or
will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
2 Total cash costs per ounce and all-in sustaining costs or AISC per ounce are non-GAAP ratios that are not standardized financial
measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis,
and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP measures and reconciliations of
total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding
Certain Measures of Performance" below.
• Record quarterly adjusted net income 3 – The Company reported quarterly net income of $567.1
million or $1.13 per share and adjusted net income of $572.6 million or $1.14 per share
• Record quarterly cash provided by operating activities and free cash flow – The Company
generated record cash provided by operating activities of $1,084.5 million or $2.16 per share
($1,027.5 million or $2.05 per share before changes in non-cash working capital balances 4) and
free cash flow 4 of $620.4 million or $1.24 per share ( $563.4 million or $1.12 per share before
changes in non-cash working capital balances4)
• Strengthening financial position with further reduction of debt – The Company increased its
cash position by $55.2 million to $977.2 million as at September 30, 2024. The Company continued
to reduce net debt 5 in the third quarter of 2024, repaying the $100.0 million 5.02% Series B Senior
Notes at maturity and repaying $275.0 million of the $600.0 million unsecured term loan facility
drawn in 2023. Total debt outstanding was $1,467.2 million as at September 30, 2024. Year-to-
date, net debt has been reduced by $1,014.4 million, from $1,504.4 million at the beginning of the
year to $490.0 million as at September 30, 2024
• Continued focus on shareholder returns – In the third quarter of 2024, the Company's Board of
Directors declared a quarterly dividend of $0.40 per share. Additionally, the Company repurchased
362,343 common shares at an average share price of $82.86 for an aggregate of $30.0 million
through its normal course issuer bid ("NCIB")
• Update on key value drivers and pipeline projects
◦ Detour Lake – In the third quarter of 2024, the Company advanced the site preparation for
the underground project, including the completion of the pad that will host the surface
infrastructure for the underground project and the removal of the overburden for the portal.
Infill drilling into the high-grade corridor in the West Pit zone continued to confirm higher
grades and a mineralized structure amenable to underground mining. Highlights include
22.5 grams per tonne ("g/t") gold over 12.9 metres at 490 metres depth and 15.0 g/t gold
over 18.9 metres at 573 metres depth. Drilling into the West Extension zone to the west of
current mineral resources saw highlights of 28.8 g/t gold over 3.6 metres at 570 metres
depth and 11.7 g/t gold over 3.3 metres at 731 metres depth
◦ Odyssey mine at Canadian Malartic – In the third quarter of 2024, ramp development
and shaft sinking activities progressed on schedule, reaching a depth of 873 metres and
839 metres, respectively, and the excavation of the temporary shaft loading station on level
64 was completed. Surface construction progressed as planned, with a focus on the
service hoist and the operations complex. Recent exploration drilling continued to return
good results in the eastern extension of the East Gouldie deposit up to 760 metres east of
current mineral resources, including 3.0 g/t gold over 51.5 metres at 1,349 metres depth
and 5.1 g/t gold over 8.2 metres at 1,455 metres depth. In the upper extension of East
Gouldie, conversion drilling near the Odyssey shaft has returned intersections including 3.3
g/t gold over 20.8 metres at 814 metres depth. Results from the ongoing exploration
program continue to show the potential to add significant mineral resources along
extensions of the main East Gouldie deposit
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 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.
◦ Madrid at Hope Bay – Exploration drilling during the third quarter of 2024 totalled 33,100
metres and continued to return wide, high-grade mineralized intervals at the Patch 7 zone,
including 18.3 g/t gold over 16.4 metres at 479 metres depth, 16.8 g/t gold over 27.3
metres at 436 metres depth and 11.9 g/t gold over 30.4 metres at 394 metres depth, further
confirming the greater thicknesses and higher gold grades in this area compared to the
rest of the Madrid deposit
Third Quarter 2024 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Thursday, October 31, 2024 at 11 :00 AM
(E.D.T.) to discuss the Company's financial and operating results.
Via Webcast:
To listen to the live webcast of the conference call, you may register on the Company's website at
www.agnicoeagle.com, or directly via the link here.
Via Phone:
To join the conference call by phone, please dial 416.945.7677 or toll-free 1.888.699.1199 to be entered
into the call by an operator. To ensure your participation, please call approximately five minutes prior to the
scheduled start of the call.
To join the conference call by phone without operator assistance, you may register your phone number
here 30 minutes prior to the scheduled start of the call to receive an instant automated call back.
Replay Archive:
Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 80122#. The conference call replay will
expire on November 30, 2024.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Third Quarter 2024 Production and Cost Results
Production and Cost Results Summary
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024 2023 2024 2023*
Gold production (ounces) . . . . . . . . . . . . . . . . . . . . . 863,445 850,429 2,637,935 2,536,446
Gold sales (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . 855,899 843,097 2,609,192 2,489,503
Production costs per ounce . . . . . . . . . . . . . . . . . . . $ 908 $ 893 $ 887 $ 850
Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . $ 921 $ 898 $ 897 $ 857
AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,286 $ 1,210 $ 1,214 $ 1,162
* Production and Cost Results Summary reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including
March 30, 2023 and 100% thereafter.
Gold Production
• Third Quarter of 2024 – Gold production increased when compared to the prior-year period
primarily due to higher production from the Nunavut operations, Macassa and Detour Lake,
partially offset by lower production at Canadian Malartic and La India
3
• First Nine Months of 2024 – Gold production increased when compared to the prior-year period
primarily due to higher production from Canadian Malartic, Meadowbank and Macassa, partially
offset by lower production at Fosterville and La India
Production Costs per Ounce
• Third Quarter of 2024 – Production costs per ounce increased when compared to the prior-year
period primarily due to higher royalties arising from higher gold prices, partially offset by higher
production and the benefit of the weaker Canadian dollar during the period
• First Nine Months of 2024 – Production costs per ounce increased when compared to the prior-
year period primarily due to higher royalties arising from higher gold prices and higher production
costs at Canadian Malartic related to underground mining operations, partially offset by higher
production and the benefit of the weaker Canadian dollar during the period
Total Cash Costs per Ounce
• Third Quarter and First Nine Months of 2024 – Total cash costs per ounce increased when
compared to the prior-year periods primarily due to the reasons described above for the increase in
production costs per ounce
AISC per Ounce
• Third Quarter and First Nine Months of 2024 – AISC per ounce increased when compared to the
prior-year periods due to the factors causing higher total cash costs per ounce and anticipated
higher sustaining capital expenditures primarily at Canadian Malartic and Detour Lake, partially
offset by higher production during the period
4
Third Quarter 2024 Financial Results
Financial Results Summary
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024 20236 2024 20236
Realized gold price ($/ounce)7 . . . . . . . . . . . . . . . . . . . . . $ 2,492 $ 1,928 $ 2,297 $ 1,933
Net income ($ millions)8
. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 567.1 $ 174.8 $ 1,386.3 $ 2,315.4
Adjusted net income ($ millions) . . . . . . . . . . . . . . . . . . . . $ 572.6 $ 216.1 $ 1,485.3 $ 806.7
EBITDA ($ millions)9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,258.6 $ 722.0 $ 3,264.2 $ 3,878.4
Adjusted EBITDA ($ millions)9
. . . . . . . . . . . . . . . . . . . . . . $ 1,256.6 $ 768.4 $ 3,362.0 $ 2,394.0
Cash provided by operating activities ($ millions) . . . . . $ 1,084.5 $ 502.1 $ 2,829.0 $ 1,873.7
Cash provided by operating activities before changes
in non-cash working capital balances ($ millions) . . . . . $ 1,027.5 $ 668.7 $ 2,790.8 $ 1,970.5
Capital expenditures10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 485.8 $ 406.4 $ 1,265.1 $ 1,164.2
Free cash flow ($ millions) . . . . . . . . . . . . . . . . . . . . . . . . . $ 620.4 $ 82.3 $ 1,573.3 $ 645.3
Free cash flow before changes in non-cash working
capital balances ($ millions) . . . . . . . . . . . . . . . . . . . . . . . . $ 563.4 $ 248.8 $ 1,535.0 $ 742.1
Net income per share (basic) . . . . . . . . . . . . . . . . . . . . . . $ 1.13 $ 0.35 $ 2.78 $ 4.76
Adjusted net income per share (basic) . . . . . . . . . . . . . . $ 1.14 $ 0.44 $ 2.97 $ 1.66
Cash provided by operating activities per share (basic)
$ 2.16 $ 1.01 $ 5.67 $ 3.85
Cash provided by operating activities before changes
in non-cash working capital balances per share (basic)
$ 2.05 $ 1.35 $ 5.59 $ 4.05
Free cash flow per share (basic) . . . . . . . . . . . . . . . . . . . $ 1.24 $ 0.17 $ 3.15 $ 1.33
Free cash flow before changes in non-cash working
capital balances per share (basic) . . . . . . . . . . . . . . . . . . $ 1.12 $ 0.50 $ 3.07 $ 1.53
Net Income
• Third Quarter of 2024
◦ Net income was $567.1 million ($1.13 per share). This result includes the following items
(net of tax): derivative gains on financial instruments of $11.7 million ( $0.02 per share ),
non-recurring tax adjustment s and foreign currency translation gains on deferred tax
liabilities of $5.5 million ($0.01 per share), net asset disposal losses of $3.7 million ($0.01
per share) and foreign exchange and other adjustments of $8.0 million (0.01 per share)
◦ Excluding the above items results in adjusted net income of $572.6 million or $1.14 per
share
5
6 Certain previously reported line items have been restated to reflect the final purchase price allocation related to the acquisition of the
Canadian assets of Yamana Gold Inc. (the "Yamana Transaction") including the 50% of Canadian Malartic that the Company did not
own. Reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% thereafter.
7 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold.
8 For the first quarter of 2023, includes a $1.5 billion revaluation gain on the 50% interest the Company owned in Canadian Malartic
prior to the Yamana Transaction on March 31, 2023.
9 "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP
measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of
these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.
10 Includes capitalized exploration. Capital expenditures is a non-GAAP measure that is not a standardized financial measure under
IFRS. For a discussion of the composition and usefulness of this non-GAAP measure and a reconciliation to additions to property,
plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of
Performance" below.
◦ Included in net income and not adjusted above, is a non-cash stock option expense of $2.1
million (less than $0.01 per share)
◦ Net income of $567.1 million in the third quarter of 2024 increased compared to net income
of $174.8 million in the prior-year period primarily due to stronger mine operating margins 11
resulting from higher realized gold prices and higher sales volumes, gains on derivative
financial instruments in the current period and lower amortization expense s (primarily at
Meadowbank, Canadian Malartic and Detour Lake) , partially offset by higher income and
mining tax expenses and higher production expenses
• First Nine Months of 2024 – Net income of $1,386.3 million decreased compared to the prior-year
period net income of $2,315.4 million primarily due to a remeasurement gain at Canadian Malartic
in the prior period and higher income and mining tax expenses, partially offset by higher operating
margins from higher realized gold prices and higher sales volumes. The remeasurement gain in the
prior period is from the application of purchase accounting relating to a business combination
attained in stages, which required the remeasurement of the Company's previously held 50%
interest in Canadian Malartic to fair value.
Adjusted EBITDA
• Third Quarter of 2024 – Adjusted EBITDA increased when compared to the prior-year period
primarily due to stronger mine operating margins from hi gher realized gold prices and higher sales
volumes
• First Nine Months of 2024 – Adjusted EBITDA increased when compared to the prior-year period
primarily due to the reasons set out above for the third quarter of 2024 and as a result of the
acquisition of the remaining 50% of Canadian Malartic
Cash Provided by Operating Activities
• Third Quarter and First Nine Months of 2024 – Cash provided by operating activities and cash
provided by operating activities before changes in non-cash working capital balances increased
when compared to the prior-year periods primarily due to the reasons described above related to
the increases in adjusted EBITDA
Free Cash Flow Before Changes in Non-cash Working Capital Balances
• Third Quarter and First Nine Months of 2024 – Free cash flow before changes in non-cash working
capital balances increased when compared to the prior-year periods due to the reasons described
above related to cash provided by operating activities, partially offset by higher additions to
property, plant and mine development
Capital Expenditures
In the third quarter of 2024, capital expenditures were $437.2 million and capitalized exploration
expenditures were $48.6 million, for a total of $485.8 million. Expected capital expenditures (including
capitalized exploration) remain in line with the updated guidance for the full year 2024. Further details are
set out in the "2024 Guidance" section below.
The following table sets out a summary of capital expenditures (including sustaining capital expenditures
and development capital expenditures) and capitalized exploration in the third quarter of 2024 and the first
nine months of 2024.
6
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.
Sep 30, 2024 Sep 30, 2024 Sep 30, 2024 Sep 30, 2024
Sustaining Capital Expenditures
LaRonde . . . . . . . . . . . . . . . . . . . . . . $ 19,302 $ 63,125 $ 473 1,349
Canadian Malartic . . . . . . . . . . . . . . 36,789 91,887 — —
Goldex . . . . . . . . . . . . . . . . . . . . . . . . 16,505 39,912 753 2,536
Detour Lake . . . . . . . . . . . . . . . . . . . . 77,638 189,247 — —
Macassa . . . . . . . . . . . . . . . . . . . . . . . 12,200 28,389 451 1,259
Meliadine . . . . . . . . . . . . . . . . . . . . . . 19,716 53,664 2,321 6,148
Meadowbank . . . . . . . . . . . . . . . . . . . 30,216 71,718 — —
Fosterville . . . . . . . . . . . . . . . . . . . . . 9,509 22,298 — —
Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . 17,537 51,813 316 1,181
Pinos Altos . . . . . . . . . . . . . . . . . . . . . 7,099 18,190 742 1,662
La India . . . . . . . . . . . . . . . . . . . . . . . — 22 — —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 1,251 3,520 144 989
Total Sustaining Capital
Expenditures . . . . . . . . . . . . . . . . . . . . $ 247,762 $ 633,785 $ 5,200 $ 15,124
Development Capital Expenditures
LaRonde . . . . . . . . . . . . . . . . . . . . . . $ 16,442 $ 61,168 $ — —
Canadian Malartic . . . . . . . . . . . . . . 41,824 121,028 1,510 3,702
Goldex . . . . . . . . . . . . . . . . . . . . . . . . 1,830 8,886 — —
Detour Lake . . . . . . . . . . . . . . . . . . . . 52,199 121,273 9,051 26,150
Macassa . . . . . . . . . . . . . . . . . . . . . . . 27,550 62,008 7,521 25,225
Meliadine . . . . . . . . . . . . . . . . . . . . . . 21,070 58,164 1,888 8,694
Meadowbank . . . . . . . . . . . . . . . . . . . 7 (20) — —
Fosterville . . . . . . . . . . . . . . . . . . . . . 8,402 27,016 2,531 9,497
Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . 775 2,971 1,171 5,730
Pinos Altos . . . . . . . . . . . . . . . . . . . . . 355 1,806 10 14
San Nicolás project . . . . . . . . . . . . . 3,422 15,077 — —
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 15,530 23,547 19,745 34,270
Total Development Capital
Expenditures . . . . . . . . . . . . . . . . . . . . $ 189,406 $ 502,924 $ 43,427 $ 113,282
Total Capital Expenditures . . . . . . . $ 437,168 $ 1,136,709 $ 48,627 $ 128,406
Summary of Capital Expenditures
($ thousands)
Capital Expenditures* Capitalized Exploration
Three Months
Ended
Nine Months
Ended
Three Months
Ended
Nine Months
Ended
* Excludes capitalized exploration
7
2024 Guidance
Based on the operational performance in the first nine months of 2024, the Company is tracking well to
meet the mid-point of gold production guidance for the full year 2024. In addition, total cash costs per
ounce, AISC per ounce and capital expenditures guidance for 2024 remain unchanged. A summary of the
Company's guidance is set out below.
2024 Guidance Summary
(In millions other than per ounce measures or as otherwise stated)
2024 2024
Range Mid-Point
Gold Production (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,350,000 3,550,000 3,450,000
Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . $875 $925 $900
AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200 $1,250 $1,225
Exploration and corporate development . . . . . . . . . . . . . . . — — $271
Depreciation and amortization expense . . . . . . . . . . . . . . . — — $1,560
General & administrative expense . . . . . . . . . . . . . . . . . . . . $175 $195 $185
Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75 $90 $83
Tax rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33% 38% 35%
Cash taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $400 $500 $450
Capital expenditures (excluding capitalized exploration) . $1,600 $1,700 $1,650
Capitalized exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — $187
Record Free Cash Flow Generation Alongside Capital Discipline Continue to Strengthen Financial
Position and Commitment to Shareholder Returns
Cash and cash equivalents increased by $55.2 million when compared to the prior quarter primarily due to
higher cash provided by operating activities as a result of higher revenues from higher realized gold prices
and favourable changes in non-cash working capital balances, partially offset by higher cash used in
financing activities related to $375.0 million repayment of debt, and higher cash used in investing activities
from higher capital expenditures and higher purchases of equity securities and other investments.
As at September 30, 2024, the Company's total long-term debt was $1,467.2 million, a reduction of $374.5
million from the second quarter of 2024. On July 24, 2024, $100.0 million was repaid with cash on hand on
the 2012 Series B 5.02% Senior Notes on maturity. In addition, a total of $275.0 million was prepaid of the
$600.0 million outstanding on the term loan facility during the quarter, further strengthening the Company's
investment grade balance sheet. The remaining $325.0 million of indebtedness under the term loan facility
is due and payable on April 21, 2025.
No amounts were outstanding under the Company's unsecured revolving bank credit facility as at
September 30, 2024 , and available liquidity remained at approximately $2.0 billion, not including the
uncommitted $1.0 billion accordion feature.
The following table sets out the calculation of net debt, which decreased by $429.7 million when compared
to the prior quarter as a result of the debt repayments and an increase in cash and cash equivalents.
8