Agnico Eagle Reports Second Quarter 2025 Results – Record Free Cash Flow with Another Quarter of Strong Production and Cost Performance; Balance Sheet Further Strengthened BY Transition to Net Cash Position and Long-Term
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 2025 RESULTS – RECORD FREE CASH FLOW
WITH ANOTHER QUARTER OF STRONG PRODUCTION AND COST PERFORMANCE; BALANCE
SHEET FURTHER STRENGTHENED BY TRANSITION TO NET CASH POSITION AND LONG-TERM
DEBT REPAYMENT
Toronto (July 30, 2025) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") today reported financial and operating results for the second quarter of 2025.
"Our portfolio of high-quality assets continued to deliver exceptional results this quarter, generating record
free cash flow, more than doubling the prior quarter. This performance reflects the strength of the gold price
environment, our disciplined cost management and the consistency of our operational execution," said
Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "While delivering record free cash
flow, we remained disciplined in our capital allocation – reinvesting in our business, strengthening our
balance sheet and returning capital to shareholders. We ended the quarter with a significant net cash
position and returned approximately $300 million to shareholders through dividends and share repurchases
this quarter. We remain focused on executing on our 2025 guidance and advancing our key growth projects
to drive long-term value creation."
Second quarter 2025 highlights:
• Strong quarterly gold production and cost performance – Payable gold production 1 was
866,029 ounces at production costs per ounce of $911, total cash costs per ounce2 of $933 and all-
in sustaining costs ("AISC") per ounce 2 of $1,289. The strong operational performance in the
second quarter of 2025 was led by Canadian Malartic, LaRonde, Macassa and Fosterville. At mid-
year, the Company has achieved approximately 51% of the mid-point of its full-year gold production
guidance, while achieving total cash costs per ounce below the mid-point of guidance, despite
higher royalty costs resulting from higher gold prices
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.
Payable gold production for the three months ended June 30, 2025 excludes payable gold production at La India and Creston
Mascota of 858 and 39 ounces, respectively, which were produced from residual leaching.
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® Accounting Standards 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 free cash flow – The Company reported quarterly
net income of $1,069 million or $2.13 per share and record adjusted net income3 of $976 million or
$1.94 per share. The Company generated cash provided by operating activities of $1,845 million or
$3.67 per share ( $1,332 million or $2.65 per share of cash provided by operating activities before
changes in non-cash components of working capital 4) and record free cash flow 4 of $1,305 million
or $2.60 per share ( $792 million or $1.58 per share of free cash flow before changes in non-cash
components of working capital4)
• 2025 gold production and cost guidance reiterated – Full year expected payable gold
production in 2025 remains unchanged at 3.3 to 3.5 million ounces, with total cash costs per ounce
and AISC per ounce in 2025 unchanged at $915 to $965 and $1,250 to $1,300, respectively. Total
capital expenditures (excluding capitalized exploration) for 2025 remain estimated to be between
$1.75 billion to $1.95 billion and capitalized exploration remains expected to be between $290 and
$310 million. Further details are set out in the 2025 Guidance Summary section below
• Balance sheet strengthened by transition to net cash position and debt redemption – The
Company transitioned to a net cash 5 position of $963 million as at June 30, 2025 as a result of the
increase in its cash position by $419 million to $1,558 million and the reduction of long-term debt
by $550 million to $595 million. On June 30, 2025, the Company repaid $40 million of the 2017
Series A 4.42% senior notes at maturity and also redeemed the remaining outstanding principal of
$260 million of the 2017 senior notes and $250 million of the 2016 senior notes with interest rates
ranging from 4.64% to 4.94%. The aggregate payments were comprised of $40 million of the
current portion of long-term debt and $510 million of long-term debt
• Increased quarterly share repurchases demonstrate continued focus on shareholder returns
– A quarterly dividend of $0.40 per share has been declared. In addition, the Company
repurchased 836,488 common shares during the quarter at an average share price of $119.47 for
aggregate consideration of $100 million under its normal course issuer bid ("NCIB"). The NCIB was
renewed in May 2025 with an increased purchase limit of up to $1 billion of common shares
• Update on key value drivers and pipeline projects
◦ Canadian Malartic – In the second quarter of 2025, total development reached a quarterly
record of 4,850 metres. This included the ramp reaching the mid-shaft loading station at
level 102, advancement of the ramp toward shaft bottom at a depth of 1,179 metres, and
continued development of the East Gouldie production levels in preparation for initial
production in the second half of 2026. Excavation of the mid-shaft loading station between
levels 102 and 114 progressed, with steel installation underway and completion expected
in the third quarter of 2025. The temporary service hoist ramped up to its design hoisting
capacity of 3,500 tonnes per day ("tpd"). Exploration drilling continued to extend the East
Gouldie deposit to the east in both the upper and lower portions of the deposit. Regional
exploration is prioritizing the newly acquired Marban project including pit design
optimization and potential lateral extension of the Marban deposit
◦ Detour Lake – In the second quarter of 2025, the Company initiated development of the
exploration ramp with the mobilization of the contractor, completion of the ramp portal and
the first blast for the exploration ramp that occurred on July 4, 2025. Exploration drilling into
the high-grade corridor in the West Pit zone further defined the high-grade domains that
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 Accounting Standards. 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 components of working capital, free cash flow and free cash flow
before changes in non-cash components of working capital and their related per share measures are non-GAAP measures or ratios
that are not standardized financial measures under IFRS Accounting Standards. 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 cash (debt), that is, a negative "net debt" position, and net debt are non-GAAP measures that are not standardized financial
measures under IFRS Accounting Standards. For a description of the composition and usefulness of these non-GAAP measures and
a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance" below.
could potentially be mined early in the underground project, with highlight intercepts of 3.4
grams per tonne ("g/t") gold over 67.2 metres at 416 metres depth and 2.3 g/t gold over
42.6 metres at 525 metres depth. Drilling into the West Extension zone at underground
depths further confirmed the grades and continuity of mineralization in the western plunge
of the deposit
◦ Upper Beaver – In the second quarter of 2025, structural steel installation for the shaft
head frame progressed and cladding installation began. In addition, installation of the
hoists for service and potential production commenced. At the ramp portal, supporting
infrastructure was completed, with excavation of the exploration ramp now expected to
begin in the third quarter of 2025
◦ Hope Bay – In the second quarter of 2025, site infrastructure upgrades advanced,
including dismantling major components of the existing mill and the refurbishment of the
first wing at the Doris camp. In the second quarter of 2025, exploration drilling at Hope Bay
totalled 39,390 metres (68,800 metres year-to-date), with a continued focus on mineral
resource expansion and conversion of the Patch 7 and Suluk zones in the Madrid deposit.
Recent drilling results, including 25.7 g/t gold over 8.4 metres at 754 metres depth in one
of the deepest intercepts of the Patch 7 zone to date, continue to support the potential for
mineral resource expansion at depth and along strike
◦ San Nicolas project – In the second quarter of 2025, Minas de San Nicolas continued
working on a feasibility study, with completion expected late in 2025. Minas de San Nicolas
received an exploration permit authorizing additional drill pads across the property and the
joint venture approved supplemental drilling activities focused on geotechnical,
hydrological, and geological evaluation in proximity to the projected mine area
Second Quarter 2025 Results Conference Call and Webcast Tomorrow
The Company's senior management will host a conference call on Thursday, July 31, 2025 , 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 automated call back.
Replay Archive:
Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 68663#. The conference call replay will
expire on August 31, 2025.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
3
Second Quarter 2025 Production and Costs
Production and Cost Results Summary
Three Months Ended
June 30,
Six Months Ended
June 30,
2025 2024 2025 2024
Gold production* (ounces) . . . . . . . . . . . . . . . . . . . . . . . . 866,029 895,838 1,739,823 1,774,490
Gold sales (ounces)** . . . . . . . . . . . . . . . . . . . . . . . . . . . . 846,835 874,230 1,689,800 1,753,293
Production costs per ounce*** . . . . . . . . . . . . . . . . . . . . . $ 911 $ 862 $ 895 $ 877
Total cash costs per ounce*** . . . . . . . . . . . . . . . . . . . . . $ 933 $ 870 $ 918 $ 885
AISC per ounce*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,289 $ 1,169 $ 1,235 $ 1,179
*Gold production for the three months ended June 30, 2025 excludes payable gold production at La India and Creston
Mascota of 858 and 39 ounces, respectively, which were produced from residual leaching. Gold production for the six
months ended June 30, 2025 excludes payable gold production at La India and Creston Mascota of 2,669 and 64
ounces, respectively.
**Canadian Malartic's payable metal sold excludes the 5% in-kind net smelter return royalty held by Osisko Gold
Royalties Ltd. Detour Lake's payable metal sold excludes the 2% in-kind net smelter royalty held by Franco-Nevada
Corporation. Macassa's payable metal sold excludes the 1.5% in-kind net smelter royalty held by Franco-Nevada
Corporation. For the six months ended June 30, 2025, 2,500 payable gold ounces sold are excluded at La India.
***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
• Second Quarter and First Six Months of 2025 – Gold production decreased when compared to the
prior-year periods primarily due to lower production from Meadowbank (longer than expected
Caribou migration affecting both mining and milling operations), Fosterville (lower grade and
throughput) and Canadian Malartic (lower throughput), partially offset by higher production at
Macassa and LaRonde (higher grades)
Production Costs per Ounce
• Second Quarter and First Six Months of 2025 – Production costs per ounce increased when
compared to the prior-year periods primarily due to higher royalties resulting from higher gold
prices and lower production, partially offset by the benefit of the weaker Canadian dollar during
both periods
Total Cash Costs per Ounce
• Second Quarter and First Six Months of 2025 – 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 both periods
AISC per Ounce
• Second Quarter and First Six Months of 2025 – AISC per ounce increased when compared to the
prior-year periods due to the reasons described above for the increase in total cash costs per
ounce, higher sustaining capital expenditures primarily at Meadowbank and Fosterville and higher
general and administrative expenses during both periods
See the Company's Management Discussion and Analysis for the second quarter of 2025 (the "MD&A")
under the caption "Financial and Operating Results" for additional variance analysis on gold production,
production costs, minesite costs per tonne and total cash costs per ounce compared to the prior-year
periods.
4
Second Quarter 2025 Financial Results
Financial Results Summary
Three Months Ended
June 30,
Six Months Ended
June 30,
2025 2024 2025 2024
Realized gold price (per ounce)6
. . . . . . . . . . . . . . . . . . . . . . . . . $ 3,288 $ 2,342 $ 3,090 $ 2,202
Net income (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,069 $ 472 $ 1,883 $ 819
Adjusted net income (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 976 $ 535 $ 1,746 $ 913
EBITDA (millions)7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,021 $ 1,123 $ 3,655 $ 2,006
Adjusted EBITDA (millions)7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,914 $ 1,176 $ 3,504 $ 2,105
Cash provided by operating activities (millions) . . . . . . . . . . . . $ 1,845 $ 961 $ 2,890 $ 1,745
Cash provided by operating activities before changes in non-
cash working capital balances (millions) . . . . . . . . . . . . . . . . . . $ 1,332 $ 986 $ 2,541 $ 1,763
Capital expenditures (millions)8
. . . . . . . . . . . . . . . . . . . . . . . . . . $ 538 $ 407 $ 957 $ 779
Free cash flow (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,305 $ 557 $ 1,899 $ 953
Free cash flow before changes in non-cash working capital
balances (millions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 792 $ 582 $ 1,551 $ 972
Net income per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.13 $ 0.95 $ 3.75 $ 1.64
Adjusted net income per share (basic) . . . . . . . . . . . . . . . . . . . . $ 1.94 $ 1.07 $ 3.47 $ 1.83
Cash provided by operating activities per share (basic) . . . . . $ 3.67 $ 1.92 $ 5.75 $ 3.50
Cash provided by operating activities before changes in non-
cash working capital balances per share (basic) . . . . . . . . . . . $ 2.65 $ 1.97 $ 5.06 $ 3.54
Free cash flow per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.60 $ 1.12 $ 3.78 $ 1.91
Free cash flow before changes in non-cash working capital
balances per share (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.58 $ 1.17 $ 3.09 $ 1.95
Net Income
• Second Quarter of 2025
◦ Net income increased when compared to the prior-year period primarily due to record
operating margins resulting from higher realized gold prices and gains on derivative
financial instruments (compared to losses in the prior-year period), partially offset by higher
income and mining taxes expense in the current period
◦ Net income of $1,069 million ($2.13 per share) includes the following items (net of tax): net
gains on derivative financial instruments of $83 million ($0.17 per share), foreign currency
translation gains on deferred tax liabilities and other tax adjustments of $18 million ($0.04
per share), foreign exchange gains of $12 million ($0.02 per share per share), net asset
disposal losses of $4 million ( $0.01 per share ), debt extinguishment costs of $4 million
($0.01 per share ) and reclamation and other adjustments totalling $12 million ( 0.02 per
share). Excluding these items results in adjusted net income of $976 million or $1.94 per
share
5
6 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold.
7 "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP
measures that are not standardized financial measures under IFRS Accounting Standards. 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.
8 Includes capitalized exploration. Capital expenditures is a non-GAAP measure that is not a standardized financial measure under
IFRS Accounting Standards. 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.
• First Six Months of 2025 – Net income increased when compared to the prior-year period primarily
due to record operating margins resulting from higher realized gold prices and gains on derivative
financial instruments (compared to losses in the prior-year period), partially offset by higher income
and mining taxes expense in the current period
Adjusted EBITDA
• Second Quarter and First Six Months of 2025 – Adjusted EBITDA increased when compared to the
prior-year period primarily due to higher mine operating margins from hi gher realized gold prices,
partially offset by lower gold sales, higher production costs and higher general and administrative
expenses
Cash Provided by Operating Activities
• Second Quarter and First Six Months of 2025 – 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. Cash provided by operating activities benefited from favourable
changes in non-cash working capital balances, primarily due to an increase in the accrued taxes
payable as a result of higher operating margins
Free Cash Flow Before Changes in Non-cash Working Capital Balances
• Second Quarter and First Six Months of 2025 – 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 second quarter of 2025 , capital expenditures were $460 million and capitalized exploration
expenditures were $78 million, for a total of $538 million. For the first six months of 2025 , capital
expenditures were $815 million and capitalized exploration expenditures were $143 million, for a total of
$957 million. Total capital expenditures for 2025 (including capitalized exploration) are expected to remain
in line with full year guidance as set out in the 2025 Guidance Summary below.
The following table sets out a summary of capital expenditures , in each case broken down as between
sustaining capital expenditures and development capital expenditures, and capitalized exploration by mine
in the second quarter of 2025 and the first six months of 2025.
6
Jun 30, 2025 Jun 30, 2025 Jun 30, 2025 Jun 30, 2025
Sustaining Capital Expenditures
LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,402 $ 37,905 $ 1,105 $ 1,999
Canadian Malartic . . . . . . . . . . . . . . . . . . . . . . . . 28,235 53,037 954 1,313
Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,558 26,260 641 1,172
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,195 117,202 2,700 4,484
Detour Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63,741 99,599 — —
Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,199 18,730 331 747
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,940 118,329 331 747
Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,075 30,469 1,178 2,033
Meadowbank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,160 57,528 — —
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,235 87,997 1,178 2,033
Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,985 28,615 — —
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,985 28,615 — —
Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,568 28,999 884 1,609
Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,568 28,999 884 1,609
Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,969 16,344 577 852
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,969 16,344 577 852
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,708 4,190 (156) 237
Total Sustaining Capital Expenditures . . . . . . . . . . $ 233,600 $ 401,676 $ 5,514 $ 9,962
Development Capital Expenditures
LaRonde . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,139 $ 35,082 $ 11 $ 11
Canadian Malartic . . . . . . . . . . . . . . . . . . . . . . . . 68,090 118,961 6,973 12,806
Goldex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,650 5,631 578 1,075
Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89,879 159,674 7,562 13,892
Detour Lake . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58,734 112,666 8,628 17,396
Macassa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,058 41,875 8,569 19,043
Ontario . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,792 154,541 17,197 36,439
Meliadine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,961 26,451 4,553 9,154
Meadowbank . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,356 2,681 — —
Nunavut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,317 29,132 4,553 9,154
Fosterville . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,303 14,773 3,025 5,400
Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,303 14,773 3,025 5,400
Kittila . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (968) (63) 1,782 3,009
Finland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (968) (63) 1,782 3,009
Pinos Altos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2,916 11 23
San Nicolas (50%) . . . . . . . . . . . . . . . . . . . . . . . 1,962 4,047 — —
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,967 6,963 11 23
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,356 47,850 38,045 64,762
Total Development Capital Expenditures . . . . . . . $ 226,646 $ 412,870 $ 72,175 $ 132,679
Total Capital Expenditures . . . . . . . . . . . . . . . . . . $ 460,246 $ 814,546 $ 77,689 $ 142,641
Summary of Capital Expenditures*
(thousands)
Capital Expenditures** Capitalized Exploration
Three Months
Ended
Six Months
Ended
Three Months
Ended
Six Months
Ended
*Capital expenditures is a non-GAAP measure that is not a standardized financial measure under IFRS Accounting Standards. 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
7
2025 Guidance Reiterated
Based on the operational performance in the first six months of 2025, the Company expects to meet its
gold production guidance for the full year 2025. The Company's total cash costs per ounce, AISC per
ounce and capital expenditures guidance for 2025 remain unchanged. At mid-year, the Company has
achieved approximately 51% of the mid-point of its full-year gold production guidance, while achieving total
cash costs per ounce below the mid-point of guidance, despite higher royalty costs resulting from higher
gold prices. A summary of the Company's guidance is set out below.
2025 Guidance Summary
(millions, unless otherwise stated)
2025 2025
Range Mid-Point
Gold production (ounces) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300,000 3,500,000 3,400,000
Total cash costs per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . $915 $965 $940
AISC per ounce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,250 $1,300 $1,275
Exploration and corporate development expense . . . . . . . $215 $235 $225
Depreciation and amortization expense . . . . . . . . . . . . . . . $1,550 $1,750 $1,650
General & administrative expense . . . . . . . . . . . . . . . . . . . . $190 $210 $200
Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $105 $115 $110
Tax rate (%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33% 38% 35%
Cash taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,100 $1,200 $1,150
Capital expenditures (excluding capitalized exploration) . $1,750 $1,950 $1,850
Capitalized exploration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $290 $310 $300
Tariffs
On February 1, 2025, the United States introduced tariffs on imports from countries including Canada. In
response, the Canadian and other governments announced retaliatory tariffs on imports from the United
States. In certain cases, the implementation or application of these tariffs has been postponed or modified
and exceptions to such tariffs have been made in respect of certain goods. However, the international trade
disputes set in motion by these tariffs, retaliatory tariffs and other actions remain fluid.
At this time, the Company believes its revenue structure will be largely unaffected by the tariffs as its gold
production is mostly refined in Canada, Australia or Europe. The Company continues to review its exposure
to the tariffs and trade disputes and its alternatives to inputs sourced from suppliers that are or may
become subject to the tariffs or other trade disputes. However, approximately 60% of the Company's cost
structure relates to labour, contractors, energy and royalties, which are not expected to be directly affected
by any of the tariffs or trade disputes. While there is uncertainty as to whether the tariffs or retaliatory tariffs
will be implemented, the quantum of such tariffs, the goods on which they may be applied and the ultimate
effect of tariffs or other trade disputes on the Company's supply chains, the Company continues to monitor
developments and may take steps to limit the effect of any tariffs or trade disputes on it as may be
appropriate in the circumstances. The costs guidance provided in this news release does not include any
potential impact from such tariffs or trade disputes.
Transition to Net Cash Position and Repayment of Long-term Debt
Cash and cash equivalents increased by $419 million when compared to the prior quarter primarily due to
higher cash provided by operating activities resulting from higher operating margins due to higher realized
gold prices and favourable changes in non-cash components of working capital in the current period. The
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