- Agnico Eagle Mines (TSX/NYSE:AEM) released its Q3 2024 results, calling it a period of robust financial and operational performance
- In Q3 2024, Agnico Eagle reported payable gold production of 863,445 ounces at production costs of US$908 per ounce, total cash costs of US$921 per ounce, and all-in sustaining costs of US$1,286 per ounce.
- The company reported a record quarterly net income of US$567.1 million, or US$1.13 per share, and an adjusted net income of US$572.6 million, or US$1.14 per share.
- Agnico Eagle Mines stock last traded at C$122.69 per share
Agnico Eagle Mines (TSX/NYSE:AEM) released its Q3 2024 results, calling it a period of robust financial and operational performance. The company achieved record free cash flow for the fourth consecutive quarter, which the team said further strengthens its balance sheet through significant debt reduction.
Solid gold production and cost performance
In Q3 2024, Agnico Eagle reported payable gold production of 863,445 ounces at production costs of US$908 per ounce, total cash costs of US$921 per ounce, and all-in sustaining costs (AISC) of US$1,286 per ounce. The production figures were driven by operations in Nunavut, Macassa and Fosterville, with a continued focus on operational efficiencies and cost optimization.
Financial highlights
- Net income: The company reported a record quarterly net income of US$567.1 million, or US$1.13 per share, and an adjusted net income of US$572.6 million, or US$1.14 per share.
- Cash flow: Agnico Eagle generated record cash provided by operating activities of US$1,084.5 million, or US$2.16 per share, and free cash flow of US$620.4 million, or US$1.24 per share.
- Debt reduction: The company increased its cash position to US$977.2 million and reduced net debt by US$1,014.4 million year-to-date, bringing total debt outstanding to US$1,467.2 million as of Sept. 30, 2024.
Shareholder returns
Agnico Eagle highlighted its shareholder returns, declaring a quarterly dividend of $0.40 per share and repurchasing 362,343 common shares at an average price of US$82.86, totalling US$30 million.
Exploration and project updates
- Detour Lake: Advanced site preparation for the underground project and continued infill drilling, confirming high-grade gold zones.
- Odyssey Mine at Canadian Malartic: Progressed ramp development and shaft sinking, with promising exploration results in the East Gouldie deposit.
- Madrid at Hope Bay: Exploration drilling returned high-grade mineralized intervals, confirming greater thicknesses and higher gold grades in the Patch 7 zone.
2024 guidance
Agnico Eagle is on track to meet the mid-point of its gold production guidance for 2024, with no changes to its cost and capital expenditure forecasts. Here are the key figures:
- Gold production: 3,350,000 to 3,550,000 ounces (mid-point: 3,450,000 ounces)
- Total cash costs per ounce: US$875 to $US925 (mid-point: US$900)
- AISC per ounce: US$1,200 to US$1,250 (mid-point: US$1,225)
- Exploration and corporate development: US$271 million
- Depreciation and amortization expense: US$1,560 million
- General and administrative expense: US$175 to US$195 million (mid-point: US$185 million)
- Other costs: US$75 to US$90 million (mid-point US$83 million)
“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 US$375 million of debt, increased our cash position and continued to provide strong returns to shareholders,” Ammar Al-Joundi, Agnico Eagle’s president and chief executive officer, said in a news release. “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.”
Agnico Eagle is in a stable position to achieve its gold production, cost and capital expenditure guidance for 2024, with ongoing exploration success at existing operations and pipeline projects.
Agnico Eagle Mines Ltd. is a Canadian gold mining company engaged in producing precious metals from operations in Canada, Australia, Finland and Mexico. It has a pipeline of exploration and development projects in these countries as well as in the U.S.
Agnico Eagle Mines stock (TSX/NYSE:AEM) last traded at C$122.69 per share and has risen 68.88 per cent since the year began.
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(Top image via Agnico Eagle Mines Ltd.)