Agnico Eagle Reports Fourth Quarter And Full Year 2022 Results, etc.

16 February 2023

Larger Asset Portfolio Drives Record Annual Gold Production, Operating Cash Flow And Global Mineral Reserves; Updated Three Year Guidance Provided; 2023 Focus On Optimizing Detour Lake And Canadian Malartic And Leveraging Excess Mill Capacity In The Abitibi Region To Advance Key Pipeline Projects

TORONTO, Feb. 16, 2023 /CNW/ - Agnico Eagle Mines Limited (NYSE:AEM) (TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the fourth quarter and full year of 2022, as well as future operating guidance.

Fourth quarter and full year 2022 highlights – Solid Operational Performance, Important Strategic Consolidations

In the fourth quarter of 2022 and throughout 2022, Agnico Eagle delivered solid operating performance in a challenging cost and workforce environment.  The Company had strong production and cost control, increased mineral reserves and mineral resources, progressed expansion projects and delivered the best safety performance in the Company's 66-year history.  The year also saw important strategic acquisitions aimed at furthering Agnico Eagle's core strategy of consolidating positions in premier mining jurisdictions, with the integration of Kirkland Lake Gold, and the announced acquisition of Yamana Gold's Canadian assets (including the other half of the world-class Canadian Malartic mine).

  • Operations delivered in the fourth quarter despite challenging cost environment – Payable gold production1 in the fourth quarter of 2022 was 799,438 ounces at production costs per ounce of $834, total cash costs per ounce2 of $863 and all-in sustaining costs ("AISC") per ounce3 of $1,231.  Quarterly unit costs were affected by the impact of inflationary pressures at the Nunavut and Kittila operations and lower production at LaRonde, Kittila and Pinos Altos
  • Solid quarterly financial results – The Company reported quarterly net income of $0.45 per share in the fourth quarter of 2022, with adjusted net income4 of $0.41 per share.  Operating cash flow was $0.84 per share
  • Record annual gold production and operating cash flow resulting from solid operational performance across the recently integrated asset portfolio – Payable gold production in 2022 was 3,135,007 ounces at production costs per ounce of $843, total cash costs per ounce of $793 and AISC per ounce of $1,109.  Including the full year of production from the legacy Kirkland Lake Gold mines, which were acquired on February 8, 2022, total payable gold production in 2022 was 3,280,731 ounces at production costs per ounce of $821, total cash costs per ounce of $780 and AISC per ounce of $1,090, in line with the mid-point of 2022 production guidance and slightly above the top end of the cost guidance announced in February 2022
  • Gold mineral reserves increased to a record level – Year-end 2022 gold mineral reserves increased by 9% to 48.7 million ounces of gold (1,186 million tonnes grading 1.28 grams per tonne ("g/t") gold).  The year-over-year increase in mineral reserves is largely due to significant additions at Detour Lake as well as successful conversion of mineral resources at several other operations.  At year-end 2022, measured and indicated mineral resources were 44.2 million ounces (1,178 million tonnes grading 1.17 g/t gold) and inferred mineral resources were 26.3 million ounces (311 million tonnes grading 2.63 g/t gold)
  • Acquisition of Yamana's Canadian assets expected to close in March 2023, leading to continued consolidation of the Abitibi gold belt –  The pending acquisition of Yamana Gold's Canadian assets ("Yamana Transaction") is expected to close in March 2023, subject to regulatory approvals.  Following closing, the Company will own 100% of the Canadian Malartic mine, 100% of the Wasamac project located in the Abitibi region of Quebec and several other exploration properties located in Ontario and Manitoba.  The Yamana Transaction further solidifies the Company's presence in the Abitibi gold belt, a region of low political risk and high geological potential, where the Company has a strong competitive advantage from having operated there for over 50 years.  With the acquisition, the Company's production in the Abitibi gold belt is forecast to be approximately 1.9 million ounces to 2.1 million ounces of gold per year through 2025

2023 and Expected Future Highlights 

  • Hope Bay Project – Drilling in 2022 confirmed the potential to upgrade and expand mineral resources at Doris.  Exploration in 2023 will primarily shift to the Madrid deposit to further expand the mineral resources with a focus on defining areas of higher-grade mineralization.  Work continues on evaluating larger production scenarios (targeting 350,000 to 400,000 ounces of gold per year)

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