Agnico Eagle reports 10.5% increase in reserves
Miner is soaring to new heights on acquisitions and discoveries
Agnico Eagle Mines reported its financial and operating results for 2023 on Thursday, revealing it has increased its mineral reserve by 10.5%.
The increase was mainly driven by the full acquisition of the Canadian Malartic complex, a full-year production from the Detour Lake, Macassa and Fosterville mines, and increased production from the Meadowbank complex.
Agnico produced 3.4Moz of gold in 2023, an increase of 10% compared to 2022, at a realised gold price of $1,946/oz. Production costs, total cash costs and all-in-sustaining costs increased year-on-year, at $853/oz, $865/oz, and $1,179/oz, respectively.
Adjusted net income increased to $1.1 billion, partly due to higher realised gold prices and higher sales volumes. Agnico reported an adjusted EBITDA of $3.2 billion.
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"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," chief executive Ammar Al-Joundi said. "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."
Reserves at record level
Mineral reserves increased by 10.5% to 53.8Moz of gold (1,287Mt grading 1.3gpt), largely due to the declaration of initial mineral reserves at East Gouldie, the acquisition of the Canadian Malartic complex and net mineral reserve additions at Macassa, Agnico said.
At the end of the year, measures and indicated resources were 44Moz (1,189Mt grading 1.15gpt) and inferred mineral resources were 33.1Moz (411Mt grading 2.5gpt).
"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," Al-Joundi said. "We continue to advance studies on optimizing our Abitibi platform, and we expect to provide additional updates in the first half of 2024."
For 2024, Agnico expects gold production to be around 3.35-3.55Moz at a $875-925/oz total cash costs and $1,200-1,250/oz all-in-sustaining costs.
For 2025 and 2026, the Canadian gold producer expects production to remain stable at 3.4-3.6Moz.
Agnico Eagle's share price is at C$65.57; it has a market cap of C$32.17 billion.
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