Unlocking
Regional
Potential
2023 Annual Report
Agnico Eagle is a Canadian based and led senior
gold mining company and the third largest gold
producer in the world, producing precious metals
from operations in Canada, Australia, Finland and
Mexico. It has a pipeline of high-quality exploration
and development projects in these countries as well
as in the United States. Agnico Eagle is a partner
of choice within the mining industry, recognized
globally for its leading environmental, social and
governance practices. The Company was founded
in 1957 and has consistently created value for its
shareholders, declaring a cash dividend every year
since 1983.
Content
2 Message from the President and CEO
4 Message from the Chair of the Board of Directors
5 Environmental, Social and Governance
Summary Performance
6 Operations At-a-Glance
8 Corporate Governance
10 Detailed Mineral Reserves and Mineral Resources
16 Operating and Financial Highlights
17 Management’s Discussion & Analysis
18 Forward-Looking Statements
IBC Shareholder Information
At Agnico Eagle, we pride ourselves on our great people, strong operating assets
and culture of excellence going back over six decades. As we look to the future,
we will continue to build a high quality business, based on our competitive
advantages, dedicated to sustainability and all stakeholders.
Unlocking Regional Potential
Agnico Eagle Mines Limited 2023 Annual Report
1
Message from Ammar Al-Joundi,
President and CEO
Agnico Eagle made great progress in 2023, smartly building
on our strengths and focusing on regions with great mining
potential and stable political environments. By consolidating our
business in these areas, we have increased our returns and
strengthened platforms from which to build our future business.
Not only did we enhance the value of our company, we
maintained a strong focus on safety leadership, culture and
systems, making 2023 our safest year yet. We also achieved
record annual production and industry-leading production
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performance was led by our people and I want to express my
gratitude to each and every one of them for their dedication
to safety and professionalism.
Unlocking Regional Potential
The Abitibi region stands out as one of the best in the world
for gold mining. Our focus is on optimizing our assets in this
region and strengthening our Canadian production base.
We continue to advance studies on optimizing our Abitibi
platform, including Detour’s potential expansion to over
one million ounces of gold per year. At Macassa, mining will
begin at both the Near Surface and Amalgamated Kirkland
deposits in 2024, with ore processing capacity available
at both the Macassa mill and LaRonde complex, avoiding
unnecessary capital expenditures.
At Canadian Malartic, we began mining the Odyssey South
deposit, with ramp development and shaft sinking ongoing.
We continue to add mineral reserves and mineral resources
and we are evaluating the potential to accelerate initial
production from the East Gouldie deposit to 2026 from 2027.
Our commitment to strengthening our regional platforms
doesn’t stop there. We are actively evaluating opportunities
at Upper Beaver and Wasamac, believing that optimizing our
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Our Strategy is Simple. Build a growing
high-quality, low-risk, sustainable business
by investing early in the best jurisdictions in
the world and focusing on long-term success.
We take a regional focus to our business,
operating in areas where the geological
resources are rich, the political risks are low,
and the people are knowledgeable about
the value mining brings to society.
Agnico Eagle Mines Limited 2023 Annual Report
2
Business Outlook
Over the next few years, our focus remains on consolidating
regional opportunities and delivering on our projects.
We are optimistic about the gold market, given ongoing
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to maintain our production levels and invest heavily in
exploration across our various sites, including Hope Bay in
Canada and Fosterville in Australia.
While we are a gold company at heart, we are mindful of the
global shift toward a low-carbon economy. We will keep an
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advantage in the regions we operate – as an employer and
business partner of choice – whether it is gold or other metals.
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Malartic employees into the Agnico Eagle family. We are
grateful that you, and all Agnico Eagle employees, have
kept yourselves, each other and our host communities safe,
delivering excellent results in a way that is kind-hearted and
in the spirit of teamwork.
I also want to thank Agnico Eagle’s community and First
Nations partners for supporting us and being part of our
journey, as well as our owners.
Finally, I want to thank the Board, and in particular Sean Boyd,
for their continued support and guidance these last few years
during an exciting and transformative period for our company.
Sincerely,
Ammar Al-Joundi
3UHVLGHQWDQG&KLHI([HFXWLYH2I¿FHU
Agnico Eagle Mines Limited 2023 Annual Report
3
Message from Sean Boyd,
Chair of the Board of Directors
This mission has been Agnico Eagle’s guiding force for over
25 years, shaping our corporate strategy, culture and values.
Our company relies on it to earn trust and deliver value to
our shareholders, employees, communities and business
partners. If we break our promise with any of these
stakeholders, it not only harms our reputation but also puts
our exceptional track record of long-term success at risk.
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– from a single mine to the third largest gold producer in
the world, revenues increasing from $50 million in 1998 to
$6.6 billion today, and our share price multiplying ten-fold
over this period.
Importantly, our focus has been on building not just a
bigger business, but a better one, consistently improving
its quality while making a positive impact on our employees
and communities.
An example of this commitment is our recent $5 million
project, Inunnguiniq, aimed at promoting well-being in
Nunavut through initiatives like food security and “on the
land” traditional activities. We were also recognized this
year on Forbes’ list of Canada’s Best Employers, an annual
ranking based on employees and other professionals
recommending Agnico Eagle as a desirable employer.
Our success lies not just in what we’ve built but how we’ve
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skills and leadership. Despite challenges in the mining
industry, we’ve effectively managed risks, turning potential
obstacles into big opportunities by trusting in ourselves and
believing in each other.
As a Board, our primary focus is on ensuring our strategy
to build long-term value remains effective. This includes
ensuring our people are supported and in a position to make
important and meaningful contributions to our business and
to the communities where we live and work. We thank all of
our employees for their ongoing efforts to make us better
while staying true to our mission and values.
Sincerely,
Sean Boyd
Chair of the Board of Directors
Agnico Eagle Mines Limited
Our mission is to build a high-quality,
easy to understand business —
one that generates long-term returns for our
shareholders, creates a great place to work
for our employees and contributes positively
to the communities in which we operate.
Agnico Eagle Mines Limited 2023 Annual Report
4
Environmental, Social and
Governance Summary Performance
2023 ESG STATISTICS1
1.3M
Estimated total
tonnes of CO2
equivalent
0.4
Average GHG emission
intensity (tonnes of CO2
equivalent per oz of
gold produced)
8.9M
Cubic metres freshwater
withdrawn for use
2.14
Global Combined Frequency
(Lost time injuries and
restricted work) per
million hours worked
$16.7M
Community investments
Our 2023 Sustainability Performance
In 2023, the Company maintained its strong sustainability performance with zero major or critical environmental incidents and
had its best safety year on record. On climate change, we have worked to standardize our approach to climate action across
our operations. We have established a systemic framework to increase the resilience of our operations and set site-level
activity-based reduction targets to facilitate a 30% decrease of Scope 1 and Scope 2 by 2030. We continued our efforts in
LQWHJUDWLQJ&DQDGLDQ0DODUWLFLQWRRXURSHUDWLRQVDQGVKDULQJEHVWSUDFWLFHV7KURXJKRXWWKH\HDUZHLGHQWL¿HGRSSRUWXQLWLHV
to continuously improve our sustainability Risk Monitoring and Management System, ensuring it adapts and remains robust
as standards continue to evolve. We continued to work to positively contribute to the quality of life in our host communities,
broadened our Towards Zero Accidents initiative to include focus on mental health, and took action to improve diversity, equity,
and inclusion of our workforce.
Topic
2023 Priorities
2023 Progress
Environmental
Compliance
Achieve 0 major or critical/extreme environmental incidents
No major or critical/extreme environmental incidents occurred
in 2023
Water
Stewardship
Ensure an updated water balance model is in place at all sites to
predict water management needs in the short and medium term
Developed clear corporate standards for operational water
management, including site water balances. A framework with a
corporate target and a scoring matrix was rolled out to all sites
Climate Change
Develop a Corporate Climate Standard and a systemic approach to
set site-level reduction targets
Climate Action Corporate Standard and approach to establish
site-level activity-based reduction targets completed
Tailings & Waste
Management
Continue to implement the governance of critical
infrastructure at Detour Lake, Macassa and Fosterville
The governance structure was fully implemented at Detour Lake,
Macassa and Fosterville
Community
Relations (CR)
and Satisfaction
Address 100% of grievances within 30 days and develop a baseline
of community relations and satisfaction in all operating regions
100% of our grievances addressed in 30 days and guidance
has been developed for all our CR teams to ensure consistency
in reporting
Health & Safety
0 Fatalities
No work-related fatalities in 2023
Have a Global Combined Frequency (Lost time injuries and
restricted work) per million hours worked below 3.85
The Global Combined Frequency (Lost time injuries and restricted
work) was 2.14 in 2023
Indigenous
Rights &
Relationships
Deliver 2,000 hours of cultural awareness training/activities globally
In 2023, in collaboration with our Indigenous partners and
neighbours, we achieved more than 3,200 hours of cultural
awareness training and held 135 activities aiming to raise
awareness about Indigenous People’s history and culture
1. (6*6WDWLVWLFVDUHHVWLPDWHV ¿QDOQXPEHUVZLOOEHLQFOXGHGLQWKH6XVWDLQDELOLW\5HSRUW
Agnico Eagle Mines Limited 2023 Annual Report
5
Agnico Eagle has established a valuable reputation for staying true to our mission,
faithfully executing our business strategy, and delivering measured, responsible, growth.
2023 PRODUCTION
Operations At-a-Glance
Operations
Exploration Projects
17
8
10
6
9
7
12
11
13
16
18
CANADA
MEXICO
FINLAND
AUSTRALIA
ONTARIO
QUEBEC
3.44M
Gold (in ounces)
2.41M
Silver (in ounces)
7.70K
Zinc (in tonnes)
2.62K
Copper (in tonnes)
1
2 3
15
14
4
5
Agnico Eagle Mines Limited 2023 Annual Report
6
1 LaRonde Complex (100%)
Quebec, Canada
Underground mines in Abitibi region
2023 payable production:
306,648 ounces of gold
2 Canadian Malartic Complex (100%)
Quebec, Canada
Open pit mine in Abitibi region,
Underground added in 2023
2023 payable production1:
603,955 ounces of gold
3 Goldex Mine (100%)
Quebec, Canada
Underground mine in Abitibi region
2023 payable production:
140,983 ounces of gold
4 Detour Lake Mine (100%)
Ontario, Canada
Open pit mine in northeastern Ontario
2023 payable production:
677,446 ounces of gold
5 Macassa Mine (100%)
Ontario, Canada
Underground mine in northeastern Ontario
2023 payable production:
228,535 ounces of gold
6 Meliadine Mine (100%)
Nunavut, Canada
Underground and open pit mine
2023 payable production:
364,141 ounces of gold
7 Meadowbank Complex (100%)
Nunavut, Canada
Open pit and underground mine
2023 payable production:
431,666 ounces of gold
8 Fosterville Mine (100%)
Victoria, Australia
Underground mine in southeastern Australia
2023 payable production:
277,694 ounces of gold
9 Kittila Mine (100%)
Lapland, northern Finland
Underground mine
2023 payable production:
234,402 ounces of gold
10 Pinos Altos Complex (100%)
Chihuahua State, northern Mexico
Open pit and underground mine
with milling and heap leach operation
(gold, silver by-product)
2023 payable production2:
98,280 ounces of gold
11 La India Mine (100%)
Sonora State, northern Mexico
Open pit mine with heap leach operation
in Mulatos Gold Belt
2023 payable production:
75,904 ounces of gold
MINING OPERATIONS
EXPLORATION PROJECTS
12 Hope Bay (100%)
Nunavut, Canada
Underground project
The Hope Bay property contains
substantial mineral reserves and mineral
resources at the Doris, Madrid and Boston
deposits.
13 Hammond Reef (100%)
Northwestern Ontario, Canada
$JROGH[SORUDWLRQSURMHFWZLWKVLJQL¿FDQW
open pit measured and indicated mineral
resources.
14 Kirkland Lake Regional (100%)
Northeastern Ontario, Canada
Large property located in an historic gold
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gold-copper mineralization in an intrusive
complex. Several other gold deposits
(such as the AK, Anoki/McBean and
Upper Canada zones) in altered rock near
the Larder Cadillac Deformation Zone.
15 Wasamac (100%)
Quebec, Canada
The Wasamac gold project is comprised
of six mining concessions, 281 mineral
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approximately 10,269 hectares.
16 Timmins East Properties (100%)
Northeastern Ontario, Canada
The Timmins East land package covers
100 km strike length between Timmins,
Ont., and the Quebec border. Properties
host multiple past-producing gold mines
including Holt, Holloway, Hislop, Taylor
and Aquarius.
17 San Nicolás (50%)
Zacatecas, Mexico
Large volcanic-hosted massive sulphide
deposit, jointly developed with Teck
Resources Limited.
18 Northern Territory (100%)
Gold targets at Pine Creek, Maud Creek,
Mt Paqualin and Union Reefs in Australia’s
Northern Territory.
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Eagle’s 50% interest in the Canadian Malartic complex
up to and including March 30, 2023 and 100% thereafter.
2. 2023 payable production at the Pinos Altos complex
includes 638 ounces of gold from the Creston Mascota
mine.
Agnico Eagle Mines Limited 2023 Annual Report
7
We strive to earn and retain the trust of shareholders through
a steadfast commitment to sound and effective corporate
JRYHUQDQFH2XUJRYHUQDQFHSUDFWLFHVUHÀHFWWKHVWUXFWXUH
and processes we believe are necessary to improve the
Company’s performance and enhance shareholder value.
Our Board of Directors consists of 11 directors, of which all but
two are independent from management. The Board of Directors
is ultimately responsible for overseeing the management
of the business and affairs of the Company and, in doing
so, is required to act in the best interests of the Company.
It discharges its responsibilities either directly or through
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the Audit Committee, the Compensation Committee, the
Health, Safety, Environment and Sustainable Development
Committe (HSESD) and the Technical Committee.
The Board of Directors recognizes that diversity is important
to ensuring that the Board as a whole possesses the qualities,
attributes, experience and skills to effectively oversee the
strategic direction and management of the Company. It
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DQGKDVLGHQWL¿HGGLYHUVLW\ZLWKLQWKH%RDUGDVDQHVVHQWLDO
element in attracting high caliber directors and maintaining
a high functioning Board. It considers diversity to include
different genders, ages, sexual preferences, disability, cultural
backgrounds, races, ethnicities, geographic areas and other
characteristics of its stakeholders and the communities in
which the Company is present and conducts its business.
In new director appointments and ongoing evaluations of the
effectiveness of the Board of Directors, its Committees and
each director, the Board will take into consideration diversity
as one of the factors in order to maintain an appropriate mix
and balance of diversity, attributes, skills, experience and
background on the Board and its Committees. Ultimately,
director appointments are based on merit, taking into
DFFRXQWWKHDELOLWLHVVNLOOVDQGH[SHULHQFHVLGHQWL¿HGE\WKH
Board as being in the best interests of the Company and with
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and the desire to maximize the effectiveness of corporate
decision-making, having regard to the best interests of the
Company and its strategies and objectives, including the
interests of its shareholders and other stakeholders.
In identifying suitable candidates for appointment to the
Board of Directors, the Corporate Governance Committee
considers candidates on merit against appropriate criteria
DQGZLWKGXHUHJDUGIRUWKHEHQH¿WVRIGLYHUVLW\LQWKH%RDUG
of Directors composition. In furtherance of the Board’s
diversity goals, the Board has set as a target that at least
30% of the members of the Board should be women.
The following table sets out certain statistics with respect to
the diversity shown on the Board.
Number
Percent
Women on the Board
4
36.4%
Women in Board leadership positions1
2
40.0%
Racial/ethnically diverse members of
the Board
1
9.1%
Aboriginal members of the Board
1
9.1%
Board Committees
The Corporate Governance Committee advises and
makes recommendations to the Board of Directors on
corporate governance matters, the effectiveness of the
Board of Directors and its committees, the contributions of
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director nominees.
The Audit Committee assists the Board of Directors in its
oversight responsibilities with respect to the integrity of the
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with legal and regulatory requirements, external auditor
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Company’s internal and external audit functions.
The Compensation Committee advises and makes
recommendations to the Board of Directors on the
Company’s strategy, policies and programs for
compensating and developing senior management
and for compensating directors.
The Health, Safety, Environment and Sustainable
Development Committee (HSESD) advises and makes
recommendations to the Board of Directors with respect
to monitoring and reviewing HSESD policies, principles,
practices and processes, climate change practices, diversity
and inclusion practices, HSESD performance and regulatory
issues relating to health, safety and the environment. It also
supports the Company’s commitment to a healthy and safe
work environment and environmentally sound and socially
responsible resource development.
The Technical Committee advises and makes
recommendations to the Board of Directors on the
Company’s operational practices and processes, monitors
and reviews the risks associated with the Company’s
operations and provides guidance to management
of the Company with respect to operational practices
and processes.
Corporate Governance
1. Each of the Compensation Committee and the HSESD Committee is chaired by a female director.
Agnico Eagle Mines Limited 2023 Annual Report
8
Sean Boyd, FCPA, FCA
Chair of the Board
Director since 1998
Ammar Al-Joundi
President and Chief
([HFXWLYH2I¿FHU
Jonathan Gill 4,5
Director since 2022
Natasha Vaz
&KLHI2SHUDWLQJ2I¿FHU±
Ontario, Australia & Mexico
J. Merfyn Roberts, CA1,5
Director since 2008
The Hon. Leona
Aglukkaq P.C.2,4
Director since 2021
Carol Plummer
Executive Vice President,
Operational Excellence
Elizabeth Lewis-Gray,
FAusIMM FTSE GAICD 4,5
Director since 2022
Martine A. Celej 2
Director since 2011
Jean Robitaille
Executive Vice President,
Chief Strategy &
7HFKQRORJ\2I¿FHU
Jeffrey Parr1,3
Vice Chair of the Board
Director since 2022
Jamie Porter
Executive Vice President,
Finance & Chief Financial
2I¿FHU
Jamie Sokalsky,
CPA, CA1,3
Lead Director
Director since 2015
Dominique Girard
&KLHI2SHUDWLQJ2I¿FHU±
Nunavut, Quebec & Europe
Ammar Al-Joundi
President and Chief
([HFXWLYH2I¿FHU
Director since 2022
Guy Gosselin
Executive Vice President,
Exploration
Deborah McCombe,
P.Geo.4,5
Director since 2014
1 Audit Committee
2 Compensation Committee
3 Corporate Governance Committee
4 Health, Safety, Environment and Sustainable Development (HSESD) Committee
5 Technical Committee
Board of Directors
2I¿FHUV
Peter Grosskopf 2,3
Director since 2022
Chris Vollmershausen
Executive Vice President,
Legal, General Counsel &
Corporate Secretary
Agnico Eagle Mines Limited 2023 Annual Report
9
Mineral Reserves
Gold reserves rise 10.5% to a record 53.8 million ounces
The Company’s proven and probable mineral reserves
estimate (net of 2023 gold production) totalled 1,287 million
tonnes of ore grading 1.30 g/t gold, containing approximately
53.8 million ounces of gold, at December 31, 2023. This
is an increase of approximately 5.1 million ounces of gold
(10.5%) compared to the proven and probable mineral
reserves of 48.7 million ounces of gold in 1,186 million
tonnes of ore grading 1.28 g/t gold at year-end 2022. The
year-over-year increase is largely due to a substantial new
mineral reserve addition of 5.2 million ounces of gold at the
East Gouldie deposit at the Odyssey mine. The acquisition of
the remaining 50% interest in the Canadian Malartic complex
as part of the acquisition of Yamana Gold Inc.’s Canadian
assets on March 31, 2023 (the “Yamana Transaction”)
also contributed to adding 1.5 million ounces of gold in
mineral reserves. The ore extracted from the Company’s
mines in 2023 contained 3.72 million ounces of gold in-situ
(61.8 million tonnes grading 1.88 g/t gold).
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where successful conversion drilling in the East Gouldie
GHSRVLWWKHFRPSOHWLRQRIDQLQWHUQDOVWXG\DQGLQ¿OOGULOOLQJ
increased the proven and probable mineral reserves
by 5.2 million ounces of gold (47 million tonnes grading
3.42 g/t gold) as at December 31, 2023.
The Macassa mine achieved a 171% replacement of its
PLQLQJGHSOHWLRQLQZLWKDQXQGHUJURXQGLQ¿OOGULOOLQJ
campaign that resulted in a net mineral reserves addition
totalling 115,000 ounces of gold. The addition is mainly due
to the expansion of mineral reserves in the deep eastern
portion of the mine and an optimized mine plan resulting
from improved mine infrastructure with the completion of
#4 Shaft and new ventilation facilities.
The realized synergies between Macassa and the nearby
$.DQG1HDU6XUIDFH ³1685´ GHSRVLWVFRQWLQXHGWREHQH¿W
the Macassa mine, with the addition of 67,000 ounces of
gold in mineral reserves at the AK and NSUR deposits, net
of production. Total mineral reserves at AK now stand at
160,000 ounces of gold (741,500 tonnes grading 6.69 g/t
gold) at year-end 2023 and production is expected to start
in 2024, demonstrating the achievement of operational
synergies from the Merger with Kirkland Lake Gold Inc.
The Fosterville mine successfully replaced 102% of
mining depletion in 2023 with new mineral reserves.
7KHUHSODFHPHQWZDVDFKLHYHGWKURXJKLQ¿OOGULOOLQJWKDW
combined with the revision of the mine production plan,
resulted in an addition of 289,000 ounces of gold in mineral
reserves that offset 285,000 ounces mining depletion in 2023.
The Company’s current mineral reserves are based on
a gold price of $1,400 per ounce gold for all operating
assets except the Detour Lake open pit, which is based
on a gold price of $1,300 per ounce gold, and variable
assumptions for the pipeline projects. At a gold price
10% higher than the assumed gold price (leaving other
assumptions unchanged), the Company estimates there
would be an approximate 17% increase in the gold contained
in proven and probable mineral reserves. Conversely, at a
gold price 10% lower than the assumed gold price (leaving
other assumptions unchanged), the Company estimates
there would be an approximate 11% decrease in the gold
contained in proven and probable mineral reserves.
Detailed Mineral Reserves
and Mineral Resources
Agnico Eagle Mines Limited 2023 Annual Report
10
Mineral Resources
Measured and indicated mineral resources remain
steady at 44 million ounces and inferred mineral
resources increase by 26%
At December 31, 2023, the Company’s measured and
indicated mineral resources totalled 44.0 million ounces
of gold (1,189 million tonnes grading 1.15 g/t gold). This
represents a 0.6% (0.3 million ounce) decrease in ounces
of gold compared to the measured and indicated mineral
resources a year earlier.
The slight year-over-year decrease in measured and
indicated mineral resources is primarily due to the upgrade
of mineral resources at East Gouldie to mineral reserves,
largely offset by the successful conversion of inferred
mineral resources into measured and indicated mineral
resources and the acquisition of the remaining 50% interest
in the Canadian Malartic complex and the Wasamac project
as a result of the Yamana Transaction.
,QWKH¿UVWHVWLPDWHRIPLQHUDOUHVRXUFHVDW:DVDPDF
published by Agnico Eagle, measured and indicated mineral
resource estimate at year-end 2023 totalled 2.2 million
ounces of gold (27.8 million tonnes grading 2.43 g/t).
At December 31, 2023, the Company’s inferred mineral
resources totalled 33.1 million ounces of gold (411 million
tonnes grading 2.50 g/t gold). This represents a 26%
(6.8 million ounce) increase in ounces of gold compared
to the inferred mineral resources a year earlier. The year-
over-year increase in inferred mineral resources is primarily
due to the acquisition of the remaining 50% interest in the
Canadian Malartic complex and the Wasamac project as part
of the Yamana Transaction as well as the declaration of an
initial underground inferred mineral resource at Detour Lake
below and to the west of the existing pit, totalling 1.56 million
ounces of gold (21.8 million tonnes grading 2.23 g/t gold).
Notes: Mineral reserves are reported exclusive of mineral
resources. Tonnage amounts and contained metal amounts
set out in these tables have been rounded to the nearest
thousand, so aggregate amounts may differ from column
totals. Please refer to the Company’s news release dated
February 15, 2024 and the Company’s Annual Information
Form for the year ended December 31, 2023 for further
details on mineral reserves and mineral resources. The
VFLHQWL¿FDQGWHFKQLFDOLQIRUPDWLRQUHODWLQJWR$JQLFR
Eagle’s mineral reserves and mineral resources contained
herein has been approved by Dyane Duquette, P.Geo.,
Vice President, Mineral Resources Management, who is a
³4XDOL¿HG3HUVRQ´IRUWKHSXUSRVHVRI1DWLRQDO,QVWUXPHQW
43-101 and has reviewed and approved disclosure of the
technical information and data in this annual report. The
assumptions used for the December 31, 2023 mineral
reserve and mineral resource estimates reported by the
Company were as follows:
METAL PRICE FOR MINERAL RESERVE ESTIMATION1
Gold (US$/oz)
Silver (US$/oz)
Copper (US$/lb)
Zinc (US$/lb)
$1,400
$18.00
$3.50
$1.00
1. Exceptions: US$1,300 per ounce of gold used for Detour Lake; US$1,350 per ounce of gold used for Hope Bay and Hammond Reef; US$1,200 per ounce of gold
and US$2.75 per pound of copper used for Upper Beaver; and US$1,300 per ounce of gold, US$20.00 per ounce of silver, US$3.00 per pound of copper and
US$1.10 per pound of zinc used for San Nicolás.
METAL PRICE FOR MINERAL RESOURCE ESTIMATION1
Gold (US$/oz)
Silver (US$/oz)
Copper (US$/lb)
Zinc (US$/lb)
$1,650
$22.50
$3.75
$1.25
1. Exceptions: US$1,500 per ounce of gold used for Detour Lake open pit, Northern Territory and Holt complex; US$1,300 per ounce of gold used for Detour Lake
Zone 58N; US$1,400 per ounce of gold used for Canadian Malartic; US$1,688 per ounce of gold used for Hope Bay, Santa Gertrudis and Hammond Reef;
US$1,667 per ounce of gold used for Upper Canada and El Barqueño; US$1,200 per ounce of gold and US$2.75 per pound of copper used for Upper Beaver;
US$1,533 per ounce of gold used for Barsele; US$500 per ounce of gold used for Aquarius; US$22.67 per ounce of silver used for El Barqueño; US$1,687 per
ounce of gold used for Anoki-McBean and Tarachi; US$25.00 per ounce of silver used for Santa Gertrudis; and US$1,300 per ounce of gold, US$20.00 per ounce
of silver, US$3.00 per pound of copper and US$1.10 per pound of zinc used for San Nicolás.
CURRENCY EXCHANGE RATES1
C$ per US$1.00
Mexican peso per US$1.00
AUD per US$1.00
EURO per US$1.00
CAD1.30
MXP18.00
AUD1.36
¼
1. Exceptions: exchange rate of CAD$1.25 per US$1.00 used for Upper Beaver, Upper Canada, Holt complex and Detour Lake Zone 58N; CAD1.11 per US$1.00
used for Aquarius; US$1.15 per €1.00 used for Barsele; and MXP17.00 per US$1.00 used for Tarachi.
Agnico Eagle Mines Limited 2023 Annual Report
11
Detailed Mineral Reserve and Mineral Resource Data (as at December 31, 2023)
MINERAL RESERVES as at December 31, 2023
OPERATION / PROJECT
PROVEN
PROBABLE
PROVEN & PROBABLE
GOLD
Mining
Method*
000
Tonnes
g/t
000 Oz
Au
000
Tonnes
g/t
000 Oz
Au
000
Tonnes
g/t
000 Oz
Au
Recovery
%**
LaRonde mine1
U/G
2,342
4.98
375
8,568
6.79
1,870
10,910
6.40
2,244
94.7
LaRonde Zone 52
U/G
4,450
2.11
301
4,523
2.30
334
8,972
2.20
636
94.7
LaRonde complex Total
6,791
3.10
676
13,091
5.24
2,204
19,882
4.51
2,880
Canadian Malartic3
O/P
45,474
0.58
852
45,332
1.09
1,584
90,806
0.83
2,436
89.0
East Gouldie4
U/G
—
—
—
47,005
3.42
5,173
47,005
3.42
5,173
94.6
Odyssey deposits5
U/G
17
2.25
1
4,422
2.17
308
4,440
2.17
310
95.3
Canadian Malartic complex Total
45,491
0.58
853
96,760
2.27
7,065
142,251
1.73
7,919
Goldex6
U/G
797
2.60
66
16,873
1.54
834
17,669
1.59
901
85.8
Akasaba West7
O/P
203
0.84
5
4,823
0.89
138
5,025
0.89
143
77.1
Quebec Total
53,282
0.93
1,601
131,546
2.42
10,242
184,828
1.99
11,843
Detour Lake (at or above 0.5 g/t)
O/P
70,048
1.14
2,565
484,633
0.90
14,029
554,681
0.93
16,594
91.9
Detour Lake (below 0.5 g/t)
O/P
48,656
0.43
666
215,712
0.38
2,669
264,368
0.39
3,335
90.0
Detour Lake Total8
118,703
0.85
3,230
700,346
0.74
16,698
819,049
0.76
19,928
Macassa mine9
U/G
248
16.17
129
3,959
14.34
1,825
4,207
14.45
1,954
97.4
Macassa Near Surface10
U/G
2
4.23
—
117
5.96
22
119
5.93
23
95.0
AK deposit11
U/G
—
—
—
742
6.69
160
742
6.69
160
95.0
Macassa Total
249
16.10
129
4,818
12.96
2,007
5,067
13.11
2,136
Upper Beaver12
U/G
—
—
—
7,992
5.43
1,395
7,992
5.43
1,395
95.0
Hammond Reef13
O/P
—
—
—
123,473
0.84
3,323
123,473
0.84
3,323
89.2
Ontario Total
118,952
0.88
3,359
836,629
0.87
23,424
955,581
0.87
26,783
Amaruq
O/P
3,010
1.58
153
9,469
3.76
1,146
12,479
3.24
1,299
91.7
Amaruq
U/G
49
5.96
9
2,829
5.81
528
2,878
5.81
538
91.7
Meadowbank complex Total14
3,059
1.65
162
12,298
4.23
1,674
15,357
3.72
1,837
Meliadine
O/P
266
4.27
37
4,632
4.46
664
4,898
4.45
700
94.7
Meliadine
U/G
1,514
7.57
369
11,846
6.30
2,398
13,360
6.44
2,767
96.3
Meliadine Total15
1,780
7.08
405
16,478
5.78
3,062
18,258
5.91
3,467
Hope Bay16
U/G
93
6.77
20
16,123
6.51
3,377
16,216
6.52
3,397
87.5
Nunavut Total
4,932
3.71
588
44,899
5.62
8,113
49,831
5.43
8,701
Fosterville17
U/G
679
12.52
273
7,897
5.55
1,409
8,576
6.10
1,682
95.0
Australia Total
679
12.52
273
7,897
5.55
1,409
8,576
6.10
1,682
Kittila18
U/G
984
4.11
130
25,943
4.14
3,454
26,926
4.14
3,584
86.9
Europe Total
984
4.11
130
25,943
4.14
3,454
26,926
4.14
3,584
Pinos Altos
O/P
24
1.21
1
2,363
1.21
92
2,387
1.21
93
94.4
Pinos Altos
U/G
2,386
2.14
164
4,150
2.17
290
6,536
2.16
454
94.2
Pinos Altos Total19
2,410
2.13
165
6,514
1.82
381
8,924
1.90
546
San Nicolás (50%)20
O/P
23,858
0.41
314
28,761
0.39
358
52,619
0.40
672
17.6
Mexico Total
26,268
0.57
479
35,275
0.65
739
61,543
0.62
1,219
Total Gold
205,096
0.98
6,430
1,082,188
1.36
47,380
1,287,284
1.30
53,811
Agnico Eagle Mines Limited 2023 Annual Report
12
MINERAL RESERVES as at December 31, 2023
OPERATION / PROJECT
PROVEN
PROBABLE
PROVEN & PROBABLE
SILVER
Mining
Method*
000
Tonnes
g/t
000 Oz
Ag
000
Tonnes
g/t
000 Oz
Ag
000
Tonnes
g/t
000 Oz
Ag
Recovery
%**
LaRonde mine
U/G
2,342
14.32
1,078
8,568
21.60
5,950
10,910
20.04
7,028
74.9
Pinos Altos
O/P
24
43.30
33
2,363
36.35
2,762
2,387
36.42
2,796
44.5
Pinos Altos
U/G
2,386
40.03
3,070
4,150
47.41
6,326
6,536
44.71
9,396
49.3
Pinos Altos Total
2,410
40.06
3,104
6,514
43.40
9,088
8,924
42.50
12,192
San Nicolás (50%)
O/P
23,858
23.93
18,356
28,761
20.91
19,333
52,619
22.28
37,689
38.6
Total Silver
28,609
24.50
22,538
43,843
24.38
34,371
72,453
24.43
56,909
COPPER
Mining
Method*
000
Tonnes
%
tonnes
Cu
000
Tonnes
%
tonnes
Cu
000
Tonnes
%
tonnes
Cu
Recovery
%**
LaRonde mine
U/G
2,342
0.19
4,558
8,568
0.30
25,341
10,910
0.27
29,899
83.6
Akasaba West
O/P
203
0.44
890
4,823
0.50
24,262
5,025
0.50
25,153
83.6
Upper Beaver
U/G
—
—
—
7,992
0.25
19,980
7,992
0.25
19,980
90.0
San Nicolás (50%)
O/P
23,858
1.26
299,809
28,761
1.01
291,721
52,619
1.12
591,530
78.2
Total Copper
26,402
1.16
305,258
50,144
0.72
361,305
76,546
0.87
666,562
ZINC
Mining
Method*
000
Tonnes
%
tonnes
Zn
000
Tonnes
%
tonnes
Zn
000
Tonnes
%
tonnes
Zn
Recovery
%**
LaRonde mine
U/G
2,342
0.62
14,424
8,568
1.08
92,164
10,910
0.98
106,588
69.2
San Nicolás (50%)
O/P
23,858
1.61
383,313
28,761
1.37
394,115
52,619
1.48
777,428
80.9
Total Zinc
26,199
1.52
397,736
37,330
1.30
486,280
63,529
1.39
884,016
*
Underground (“U/G”), Open Pit (“O/P”)
**
Represents metallurgical recovery percentage
1.
LaRonde mine: Net smelter value cut-off varies according to mining type and
depth, not less than C$91/t for LP1 and not less than C$192/t for LaRonde.
2.
LaRonde Zone 5: Gold cut-off grade varies according to stope size and
depth, not less than 1.56 g/t.
3.
Canadian Malartic: Gold cut-off grade not less than 0.34 g/t for Barnat pit.
4.
East Gouldie: Gold cut-off grade not less than 1.67 g/t.
5.
Odyssey deposits: Gold cut-off grade varies according to mining zone and
depth, not less than 1.53 g/t.
6.
Goldex: Gold cut-off grade varies according to mining type and depth, not
less than 1.00 g/t.
7.
Akasaba West: Net smelter value cut-off varies, not less than C$33/t.
8.
Detour Lake: Gold cut-off grade not less than 0.30 g/t.
9.
Macassa mine: Gold cut-off grade varies according to mining type, not
OHVVWKDQJWIRUORQJKROHPHWKRGDQGJWIRUFXWDQG¿OOPHWKRG
10. Macassa Near Surface: Gold cut-off grade not less than 4.33 g/t.
11. Amalgamated Kirkland (AK) deposit: Gold cut-off grade not less than 4.25 g/t.
12. Upper Beaver: Net smelter value cut-off not less than C$125/t.
13. Hammond Reef: Gold cut-off grade not less than 0.41 g/t.
14. Amaruq: Gold cut-off grade varies according to mining type, not less than
1.14 g/t for open pit mineral reserves and 3.42 g/t for underground mineral
reserves (gold cut-off grade for marginal underground mineral reserves
from development is 1.14 g/t).
15. Meliadine: Gold cut-off grade varies according to mining type, not less
than 1.80 g/t for open pit mineral reserves and 4.40 g/t for underground
mineral reserves (gold cut-off grade for marginal underground mineral
reserves from development is 1.80 g/t).
16. Hope Bay: Gold cut-off grade not less than 4.00 g/t.
17. Fosterville: Gold cut-off grade varies according to mining zone and type,
not less than 3.80 g/t.
18. Kittila: Gold cut-off grade varies according to haulage distance, not less
than 2.59 g/t.
19. Pinos Altos: Net smelter value cut-off varies according to mining zone and
type, not less than C$9.33/t for open pit mineral reserves and US$49.93/t
for the underground mineral reserves.
20. San Nicolás (50%): Net smelter return cut-off values for low zinc/copper
ore of US$9.71/t and for high zinc/copper ore of US$13.15/t.
Agnico Eagle Mines Limited 2023 Annual Report
13
MINERAL RESOURCES as at December 31, 2023
OPERATION / PROJECT
MEASURED
INDICATED
MEASURED & INDICATED
INFERRED
GOLD
Mining
Method*
000
Tonnes
g/t
000
Oz Au
000
Tonnes
g/t
000
Oz Au
000
Tonnes
g/t
000
Oz Au
000
Tonnes
g/t
000
Oz Au
LaRonde mine
U/G
—
—
—
6,424
3.06
632
6,424
3.06
632
1,569
5.67
286
LaRonde Zone 5
U/G
—
—
—
10,594
2.27
774
10,594
2.27
774
10,437
3.38
1,134
LaRonde complex Total
—
—
—
17,018
2.57
1,407
17,018
2.57
1,407
12,006
3.68
1,420
Canadian Malartic
O/P
—
—
—
—
—
—
—
—
—
8,171
0.81
214
Odyssey
U/G
—
—
—
1,372
1.71
75
1,372
1.71
75
19,700
2.29
1,453
East Malartic
U/G
—
—
—
11,134
2.04
731
11,134
2.04
731
65,748
2.12
4,480
East Gouldie
U/G
—
—
—
4,853
1.56
244
4,853
1.56
244
45,239
2.29
3,331
Odyssey Project Total
—
—
—
17,358
1.88
1,050
17,358
1.88
1,050
130,687
2.20
9,263
Canadian Malartic Total
—
—
—
17,358
1.88
1,050
17,358
1.88
1,050
138,858
2.12
9,477
Goldex
U/G
12,360
1.86
739
18,837
1.50
907
31,197
1.64
1,646
16,154
1.68
871
Akasaba West
O/P
—
—
—
4,044
0.70
91
4,044
0.70
91
—
—
—
Wasamac
U/G
—
—
—
27,850
2.43
2,173
27,850
2.43
2,173
9,232
2.66
789
Quebec Total
12,360
1.86
739
85,109
2.06
5,628
97,468
2.03
6,367
176,249
2.22
12,558
Detour Lake
O/P
30,861
1.45
1,434
697,821
0.74
16,520
728,681
0.77
17,955
58,317
0.62
1,156
Detour Lake
U/G
—
—
—
—
—
—
—
—
—
21,811
2.23
1,561
Detour Lake Zone 58N
U/G
—
—
—
2,868
5.80
534
2,868
5.80
534
973
4.35
136
Detour Lake Total
30,861
1.45
1,434
700,688
0.76
17,055
731,549
0.79
18,489
81,101
1.09
2,853
Macassa
U/G
258
10.32
86
1,910
8.35
512
2,168
8.58
598
3,692
9.21
1,094
Macassa Near Surface
U/G
—
—
—
65
6.14
13
65
6.14
13
133
6.62
28
AK Project
U/G
—
—
—
163
6.95
37
163
6.95
37
282
5.69
52
Macassa Total
258
10.32
86
2,138
8.17
562
2,396
8.40
647
4,106
8.89
1,173
Aquarius
O/P
—
—
—
23,112
1.49
1,106
23,112
1.49
1,106
502
0.87
14
Holt complex
U/G
5,806
4.29
800
5,884
4.75
898
11,690
4.52
1,699
9,097
4.48
1,310
Anoki-McBean
U/G
—
—
—
3,919
2.77
349
3,919
2.77
349
867
3.84
107
Upper Beaver
U/G
—
—
—
3,636
3.45
403
3,636
3.45
403
8,688
5.07
1,416
Upper Canada
O/P
—
—
—
2,006
1.62
104
2,006
1.62
104
1,020
1.44
47
Upper Canada
U/G
—
—
—
8,433
2.28
618
8,433
2.28
618
17,588
3.21
1,816
Upper Canada Total
—
—
—
10,439
2.15
722
10,439
2.15
722
18,608
3.11
1,863
Hammond Reef
O/P
47,063
0.54
819
86,304
0.53
1,478
133,367
0.54
2,298
—
—
—
Ontario Total
83,988
1.16
3,140
836,119
0.84
22,574
920,107
0.87
25,713
122,968
2.21
8,736
Amaruq
O/P
—
—
—
4,758
2.62
401
4,758
2.62
401
236
2.87
22
Amaruq
U/G
—
—
—
8,544
4.37
1,199
8,544
4.37
1,199
3,938
4.75
602
Amaruq Total
—
—
—
13,302
3.74
1,600
13,302
3.74
1,600
4,173
4.65
623
Meadowbank complex Total
—
—
—
13,302
3.74
1,600
13,302
3.74
1,600
4,173
4.65
623
Meliadine
O/P
3
3.17
—
4,613
3.14
466
4,615
3.14
466
1,135
4.45
162
Meliadine
U/G
422
4.64
63
7,626
4.49
1,100
8,047
4.49
1,163
9,986
6.42
2,060
Meliadine Total
424
4.63
63
12,238
3.98
1,566
12,663
4.00
1,629
11,120
6.22
2,222
Hope Bay
U/G
—
—
—
10,734
3.64
1,255
10,734
3.64
1,255
12,110
5.41
2,108
Nunavut Total
424
4.63
63
36,274
3.79
4,421
36,699
3.80
4,485
27,404
5.62
4,953
Fosterville
O/P
820
2.81
74
1,771
3.87
220
2,591
3.53
294
326
2.72
29
Fosterville
U/G
262
3.99
34
8,758
4.20
1,184
9,019
4.20
1,218
9,693
4.60
1,433
Fosterville Total
1,082
3.10
108
10,528
4.15
1,404
11,610
4.05
1,512
10,019
4.54
1,461
Northern Territory
O/P
269
3.65
32
16,416
1.42
749
16,685
1.46
781
13,536
1.75
762
Northern Territory
U/G
—
—
—
5,115
5.39
887
5,115
5.39
887
4,284
4.45
613
Northern Territory Total
269
3.65
32
21,531
2.36
1,636
21,800
2.38
1,668
17,820
2.40
1,376
Australia Total
1,351
3.21
139
32,059
2.95
3,040
33,410
2.96
3,180
27,839
3.17
2,837
Kittila
O/P
—
—
—
—
—
—
—
—
—
373
3.89
47
Kittila
U/G
4,299
2.91
402
13,632
2.93
1,285
17,931
2.93
1,687
6,192
5.13
1,020
Kittila Total
4,299
2.91
402
13,632
2.93
1,285
17,931
2.93
1,687
6,565
5.06
1,067
Agnico Eagle Mines Limited 2023 Annual Report
14
MINERAL RESOURCES as at December 31, 2023
OPERATION / PROJECT
MEASURED
INDICATED
MEASURED & INDICATED
INFERRED
GOLD
Mining
Method*
000
Tonnes
g/t
000
Oz Au
000
Tonnes
g/t
000
Oz Au
000
Tonnes
g/t
000
Oz Au
000
Tonnes
g/t
000
Oz Au
Barsele
O/P
—
—
—
3,178
1.08
111
3,178
1.08
111
2,260
1.25
91
Barsele
U/G
—
—
—
1,158
1.77
66
1,158
1.77
66
13,552
2.10
914
Barsele Total
—
—
—
4,335
1.27
176
4,335
1.27
176
15,811
1.98
1,005
Europe Total
4,299
2.91
402
17,967
2.53
1,461
22,266
2.60
1,863
22,376
2.88
2,072
Pinos Altos
O/P
—
—
—
1,266
1.03
42
1,266
1.03
42
445
1.27
18
Pinos Altos
U/G
—
—
—
10,394
1.92
643
10,394
1.92
643
1,431
1.87
86
Pinos Altos Total
—
—
—
11,659
1.83
685
11,659
1.83
685
1,876
1.73
104
La India
O/P
4,478
0.52
74
814
0.54
14
5,292
0.52
88
66
0.40
1
San Nicolás (50%)
O/P
261
0.08
1
3,037
0.20
19
3,297
0.19
20
2,468
0.13
10
Tarachi
O/P
—
—
—
19,290
0.58
361
19,290
0.58
361
242
0.52
4
Chipriona
O/P
—
—
—
10,983
0.92
326
10,983
0.92
326
976
0.66
21
El Barqueño Gold
O/P
—
—
—
8,834
1.16
331
8,834
1.16
331
9,628
1.13
351
Santa Gertrudis
O/P
—
—
—
19,267
0.91
563
19,267
0.91
563
9,819
1.36
429
Santa Gertrudis
U/G
—
—
—
—
—
—
—
—
—
9,079
3.44
1,004
Santa Gertrudis Total
—
—
—
19,267
0.91
563
19,267
0.91
563
18,898
2.36
1,433
Total Mexico
4,739
0.49
75
73,884
0.97
2,299
78,623
0.94
2,373
34,154
1.75
1,923
Total Gold
107,161
1.32
4,558
1,081,412
1.13
39,423
1,188,573
1.15
43,981
410,990
2.50
33,080
SILVER
Mining
Method*
000
Tonnes
g/t
000
Oz Ag
000
Tonnes
g/t
000
Oz Ag
000
Tonnes
g/t
000
Oz Ag
000
Tonnes
g/t
000
Oz Ag
LaRonde
U/G
—
—
—
6,424
11.98
2,474
6,424
11.98
2,474
1,569
12.25
618
Pinos Altos
O/P
—
—
—
1,266
21.60
879
1,266
21.60
879
445
31.74
454
Pinos Altos
U/G
—
—
—
10,394
50.99
17,040
10,394
50.99
17,040
1,431
36.19
1,665
Pinos Altos Total
—
—
—
11,659
47.80
17,919
11,659
47.80
17,919
1,876
35.13
2,120
La India
O/P
4,478
2.72
391
814
2.61
68
5,292
2.70
460
66
2.18
5
San Nicolás (50%)
O/P
261
6.40
54
3,037
11.86
1,158
3,297
11.43
1,211
2,468
9.26
735
Chipriona
O/P
—
—
—
10,983 100.72
35,566
10,983
100.72
35,566
976
86.77
2,722
El Barqueño Silver
O/P
—
—
—
—
—
—
—
—
—
4,393 124.06
17,523
El Barqueño Gold
O/P
—
—
—
8,834
4.73
1,343
8,834
4.73
1,343
9,628
16.86
5,218
Santa Gertrudis
O/P
—
—
—
19,267
3.66
2,269
19,267
3.66
2,269
9,819
1.85
585
Santa Gertrudis
U/G
—
—
—
—
—
—
—
—
—
9,079
23.31
6,803
Santa Gertrudis Total
—
—
—
19,267
3.66
2,269
19,267
3.66
2,269
18,898
12.16
7,389
Total Silver
4,739
2.92
445
61,018
30.99
60,796
65,757
28.97
61,240
39,874
28.34
36,328
COPPER
Mining
Method*
000
Tonnes
%
Tonnes
Cu
000
Tonnes
%
Tonnes
Cu
000
Tonnes
%
Tonnes
Cu
000
Tonnes
%
Tonnes
Cu
LaRonde
U/G
—
—
—
6,424
0.13
8,613
6,424
0.13
8,613
1,569
0.28
4,371
Akasaba West
O/P
—
—
—
4,044
0.43
17,270
4,044
0.43
17,270
—
—
—
Upper Beaver
U/G
—
—
—
3,636
0.14
5,135
3,636
0.14
5,135
8,688
0.20
17,284
San Nicolás (50%)
O/P
261
1.35
3,526
3,037
1.17
35,489
3,297
1.18
39,015
2,468
0.94
23,144
Chipriona
O/P
—
—
—
10,983
0.16
17,291
10,983
0.16
17,291
976
0.12
1,174
El Barqueño Gold
O/P
—
—
—
8,834
0.19
16,400
8,834
0.19
16,400
9,628
0.22
21,152
El Barqueño Silver
O/P
—
—
—
—
—
—
—
—
—
4,393
0.04
1,854
Total Copper
261
1.35
3,526
36,958
0.27
100,198
37,218
0.28
103,724
27,721
0.25
68,980
ZINC
Mining
Method*
000
Tonnes
%
Tonnes
Zn
000
Tonnes
%
Tonnes
Zn
000
Tonnes
%
Tonnes
Zn
000
Tonnes
%
Tonnes
Zn
LaRonde
U/G
—
—
—
6,424
0.74
47,404
6,424
0.74
47,404
1,569
0.36
5,600
San Nicolás (50%)
O/P
261
0.39
1,012
3,037
0.71
21,618
3,297
0.69
22,630
2,468
0.62
15,355
Chipriona
O/P
—
—
—
10,983
0.83
91,637
10,983
0.83
91,637
976
0.73
7,073
Total Zinc
261
0.39
1,012
20,444
0.79
160,659
20,704
0.78
161,671
5,012
0.56
28,029
*
Underground (“U/G”), Open Pit (“O/P”)
Agnico Eagle Mines Limited 2023 Annual Report
15
Agnico Eagle Mines Limited 2023 Annual Report
16
All dollar amounts in this report are in US$ unless otherwise indicated
Operating Highlights
2023
2022
2021
Payable gold production (ounces)1
3,439,654
3,155,007
2,086,405
Total cash costs per ounce2
$
865
$
793
$
770
Average realized gold price per ounce
$
1,946
$
1,797
$
1,794
Financial Highlights
2023
2022
20213
Revenue from mining operations (millions)
$
6,627
$
5,741
$
3,870
Net income (millions)
$
1,941
$
670
$
562
Net income per share – basic
$
3.97
$
1.53
$
2.31
Annualized dividend declared per share4
$
1.60
$
1.60
$
1.40
1.
Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company, whether such
products are shipped during the period or held as inventory at the end of the period.
2.
7RWDOFDVKFRVWVSHURXQFHLVD1RQ*$$3PHDVXUHDQGXQOHVVRWKHUZLVHVSHFL¿HGLVUHSRUWHGRQDE\SURGXFWEDVLV)RUIXUWKHULQIRUPDWLRQVHH
“Note Regarding Certain Measures of Performance”.
3.
&HUWDLQSUHYLRXVO\UHSRUWHGLWHPVIRUWKH\HDUHQGHG'HFHPEHUKDYHEHHQUHVWDWHGWRUHÀHFWWKHUHWURVSHFWLYHDSSOLFDWLRQRI,$6
4.
Agnico Eagle has now declared a cash dividend every year since 1983.
40
CONSECUTIVE YEARS
OF DIVIDENDS
9.18%
AEM US EQUITY
CAGR1
4.56%
XAU INDEX
CAGR
6.24%
GOLD SPOT
CAGR
Annualized Dividend
(per share)
Superior Share Performance Over 10-year
Investment Period
AEM US Equity
XAU Index
Gold Spot
*
Assuming the Board of Directors continues to declare dividends
of $0.40 per quarter.
Source: CaplQ
1.
Assumes reinvestment of dividends of $0.32 in 2015, $0.36 in 2016,
$0.41 in 2017, $0.44 paid in 2018, $0.55 paid in 2019, $0.95 paid in
2020, $1.40 paid in 2021 and $1.60 paid in 2022 and in 2023.
50
100
150
200
250
300
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
2024*
$1.60
2023
$1.60
2022
$1.60
2021
$1.40
2020
$0.95
2019
$0.55
Operating and Financial Highlights
By consolidating our position in premier mining jurisdictions, we continue to build a high-quality,
ORZULVNEXVLQHVVZLWKWKH¿QDQFLDOÀH[LELOLW\WRLQYHVWLQWKHIXWXUHJURZWKRIWKH&RPSDQ\
Agnico Eagle Mines Limited 2023 Annual Report
16
Agnico Eagle Mines Limited 2023 Annual Report
17
For the year ended December 31, 2023
(Prepared in accordance with International Financial Reporting Standards)
Management’s
Discussion & Analysis
Agnico Eagle Mines Limited 2023 Annual Report
17
Agnico Eagle Mines Limited 2023 Annual Report
18
The information in this annual report has been prepared as at March 22, 2024.
Certain statements contained in this annual report constitute “forward-looking
statements” within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and “forward-looking information” under the provisions of
Canadian provincial securities laws and are referred to herein as “forward-looking
statements”. When used in this annual report, the words “anticipate”, “estimate”,
“expect”, “forecast”, “future”, “plan”, “potential”, “will” and similar expressions are
intended to identify forward-looking statements. Such statements include, without
limitation: the Company’s outlook for 2024 and future periods; statements regarding
future earnings and the sensitivity of earnings to gold and other metal prices;
anticipated levels or trends for prices of gold and by-product metals mined by the
Company or for exchange rates between currencies in which capital is raised,
revenue is generated or expenses are incurred by the Company; estimates of future
mineral production and sales; estimates of future costs, including mining costs, total
cash costs per ounce, all-in sustaining costs per ounce, minesite costs per tonne
and other costs; estimates of future capital expenditures, exploration expenditures,
development expenditures and other cash needs, and expectations as to the
funding thereof; statements regarding the projected exploration, development and
exploitation of ore deposits, including estimates of the timing of such exploration,
development and production or decisions with respect thereto; estimates of mineral
reserves and mineral resources and their sensitivities to gold prices and other
factors, ore grades and mineral recoveries and statements regarding anticipated
IXWXUHH[SORUDWLRQUHVXOWV HVWLPDWHVRIFDVKÀRZ HVWLPDWHVRIPLQHOLIH DQWLFLSDWHG
timing of events at the Company’s mines, mine development projects and exploration
projects; estimates of future costs and other liabilities for environmental remediation;
statements regarding anticipated legislation and regulations and estimates of the
impact thereof on the Company; and other anticipated trends with respect to the
&RPSDQ\¶VFDSLWDOUHVRXUFHVDQGUHVXOWVRIRSHUDWLRQV6XFKVWDWHPHQWVUHÀHFWWKH
Company’s views as at the date of this annual report and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be placed on such
statements. Forward-looking statements are necessarily based upon a number of
factors and assumptions that, while considered reasonable by Agnico Eagle as of the
GDWHRIVXFKVWDWHPHQWVDUHLQKHUHQWO\VXEMHFWWRVLJQL¿FDQWEXVLQHVVHFRQRPLFDQG
competitive uncertainties and contingencies. The material factors and assumptions
used in the preparation of the forward-looking statements contained herein, which
may prove to be incorrect, include, but are not limited to, the assumptions set forth
herein and in management’s discussion and analysis (“MD&A”) and the Company’s
$QQXDO,QIRUPDWLRQ)RUP ³$,)´ IRUWKH\HDUHQGHG'HFHPEHU¿OHGZLWK
Canadian securities regulators and that are included in its Annual Report on Form
)IRUWKH\HDUHQGHG'HFHPEHU ³)RUP)´ ¿OHGZLWKWKH86
Securities and Exchange Commission (the “SEC”) as well as: that there are no
VLJQL¿FDQWGLVUXSWLRQVDIIHFWLQJRSHUDWLRQV WKDWSURGXFWLRQSHUPLWWLQJGHYHORSPHQW
expansion and the ramp up of operations at each of Agnico Eagle’s properties
proceeds on a basis consistent with current expectations and plans; that the relevant
metal prices, foreign exchange rates and prices for key mining and construction
supplies will be consistent with Agnico Eagle’s expectations; that Agnico Eagle’s
current estimates of mineral reserves, mineral resources, mineral grades and
metal recovery are accurate; that there are no material delays in the timing for
completion of ongoing growth projects; that the Company’s current plans to optimize
production are successful; and that there are no material variations in the current
tax and regulatory environment. Many factors, known and unknown, could cause
the actual results to be materially different from those expressed or implied by such
forward-looking statements. Such risks include, but are not limited to: the volatility of
prices of gold and other metals; uncertainty of mineral reserves, mineral resources,
mineral grades and mineral recovery estimates; uncertainty of future production,
project development, capital expenditures and other costs; foreign exchange rate
ÀXFWXDWLRQV ¿QDQFLQJRIDGGLWLRQDOFDSLWDOUHTXLUHPHQWV FRVWRIH[SORUDWLRQDQG
development programs; seismic activity at the Company’s operations, including at
LaRonde and Goldex; mining risks; community protests, including by First Nations
groups; risks associated with foreign operations; governmental and environmental
regulation; the volatility of the Company’s stock price; and risks associated with the
Company’s currency, fuel and by-product metal derivative strategies. For a more
detailed discussion of such risks and other factors that may affect the Company’s
ability to achieve the expectations set forth in the forward-looking statements
FRQWDLQHGLQWKLVDQQXDOUHSRUWVHHWKH$,)DQG0' $¿OHGRQ6('$5DW
ZZZVHGDUSOXVFDDQGLQFOXGHGLQWKH)RUP)¿OHGRQ('*$5DWZZZVHFJRY
DVZHOODVWKH&RPSDQ\¶VRWKHU¿OLQJVZLWKWKH&DQDGLDQVHFXULWLHVUHJXODWRUVDQG
the SEC. Other than as required by law, the Company does not intend, and does
not assume any obligation, to update these forward-looking statements.
Forward-Looking Statements
Notes to Investors Regarding the Use of Mineral Resources
The mineral reserve and mineral resource estimates contained in this annual report
have been prepared in accordance with the Canadian Securities Administrators’
(the “CSA”) National Instrument 43-101 — Standards of Disclosure for Mineral
Projects (“NI 43-101”).
Effective February 25, 2019, the SEC disclosure requirements and policies for
mining properties were amended to more closely align with current industry and
global regulatory practices and standards, including NI 43-101. However, Canadian
issuers that report in the United States using the Multijurisdictional Disclosure
System (“MJDS”), such as the Company, may still use NI 43-101 rather than the SEC
disclosure requirements when using the SEC’s MJDS registration statement and
annual report forms. Accordingly, mineral reserve and mineral resource information
contained in this annual report may not be comparable to similar information
disclosed by U.S. companies.
Investors are cautioned that while the SEC now recognizes “measured mineral
resources”, “indicated mineral resources” and “inferred mineral resources”, investors
should not assume that any part or all of the mineral deposits in these categories
will ever be converted into a higher category of mineral resources or into mineral
reserves. These terms have a great amount of uncertainty as to their economic and
legal feasibility. Under Canadian regulations, estimates of inferred mineral resources
may not form the basis of feasibility or pre-feasibility studies, except in limited
circumstances. Investors are cautioned not to assume that any “measured
mineral resources”, “indicated mineral resources” or “inferred mineral
resources” that the Company reports in this annual report are or will be
economically or legally mineable.
Further, “inferred mineral resources” have a great amount of uncertainty as to
their existence and as to their economic and legal feasibility. It cannot be assumed
that any part or all of an inferred mineral resource will ever be upgraded to a
higher category.
The mineral reserve and mineral resource data set out in this annual report are
estimates, and no assurance can be given that the anticipated tonnages and grades
will be achieved or that the indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals contained in mineral
reserves in its calculation of contained ounces and mineral reserves are not reported
as a subset of mineral resources. See “Detailed Mineral Reserves and Mineral
Resources” in this annual report for additional information.
Note Regarding Certain Measures of Performance
This annual report discloses certain measures, including “total cash costs per
ounce”, that are not standardized measures under IFRS. These data may not be
comparable to data reported by other issuers. For a discussion of the composition
and usefulness as well as a reconciliation of these measures to the most directly
FRPSDUDEOH¿QDQFLDOLQIRUPDWLRQUHSRUWHGLQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV
prepared in accordance with IFRS and an explanation of the composition of such
measures and how such measures provide useful information to investors, see
“Non-GAAP Financial Performance Measures” in the MD&A.
)RUVFLHQWL¿FDQGWHFKQLFDOLQIRUPDWLRQDERXWWKH&RPSDQ\¶VPLQHVDQGSURMHFWV
please refer to the AIF.
Agnico Eagle Mines Limited 2023 Annual Report
18
AGNICO EAGLE MINES LIMITED MANAGEMENT’S DISCUSSION AND ANALYSIS
Table of
Contents
Page
Executive Summary
1
Strategy
2
Portfolio Overview
3
Key Performance Drivers
8
Results of Operations
10
Revenues from Mining Operations
11
Production Costs
12
Exploration and Corporate Development Expense
17
Amortization of Property, Plant and Mine Development
17
General and Administrative Expense
17
Finance Costs
18
Derivative Financial Instruments
18
Impairment Loss
18
Foreign Currency Translation (Gain) Loss
19
Other Expenses
19
Income and Mining Taxes Expense
19
Balance Sheet Review
19
Liquidity and Capital Resources
20
Operating Activities
20
Investing Activities
20
Financing Activities
21
Off-Balance Sheet Arrangements
23
Contractual Obligations
23
2024 Liquidity and Capital Resources Analysis
24
Quarterly Results Review
24
Outlook
25
2024 and 2025 Outlook Update
26
2023 Results Comparison to 2023 Outlook
26
Operations Outlook
26
Financial Outlook
30
Risk Profile
32
Financial Instruments
32
Interest Rates
33
Commodity Prices and Foreign Currencies
33
Cost Inputs
34
Operational Risk
34
Regulatory Risk
34
Page
Controls Evaluation
35
Outstanding Securities
35
Critical IFRS Accounting Policies and Accounting Estimates
35
Mineral Reserve Data
36
Non-GAAP Financial Performance Measures
39
Summarized Quarterly Data
58
Three Year Financial and Operating Summary
62
Note to Investors Concerning Forward-Looking
Information
71
Note to Investors Concerning Estimates of Mineral
Reserves and Mineral Resources
72
This Management’s Discussion and Analysis (“MD&A”) dated March 22, 2024 of Agnico Eagle Mines Limited (“Agnico
Eagle” or the “Company”) should be read in conjunction with the Company’s consolidated annual financial statements for
the year ended December 31, 2023 that were prepared in accordance with International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board (“IASB”) (the “Annual Financial Statements”). The
Annual Financial Statements and this MD&A are presented in United States dollars (“US dollars”, “$” or “US$”) and
all units of measurement are expressed using the metric system unless otherwise specified. Certain information in this
MD&A is presented in Canadian dollars (“C$”), Mexican pesos, European Union euros (“Euros” or “€”) or Australian
dollars (“A$”). Additional information relating to the Company, including the Company’s Annual Information Form for the
year ended December 31, 2023 (the “AIF”), is available on the Canadian Securities Administrators’ (the “CSA”) SEDAR
website at www.sedarplus.ca and the Form 40-F is on file with the Securities and Exchange Commission (“SEC”) at
www.sec.gov/edgar.
Certain statements contained in this MD&A, referred to herein as “forward-looking statements”, constitute “forward-
looking information” under the provisions of Canadian provincial securities laws and constitute “forward-looking
statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. See “Forward-
Looking Statements” in this MD&A.
This MD&A discloses certain financial performance measures, including “total cash costs per ounce”, “all-in sustaining
costs per ounce” (also referred to as “AISC per ounce”), “minesite costs per tonne”, “adjusted net income”, “adjusted net
income per share”, “earnings before interest, taxes, depreciation and amortization” (also referred to as “EBITDA”),
“adjusted earnings before interest, taxes, depreciation and amortization” (also referred to as “adjusted EBITDA”), “free
cash flow”, “free cash flow before changes in non-cash components of working capital”, “sustaining capital expenditures”,
“development capital expenditures” and “operating margin” that are not standardized measures under IFRS. These
measures may not be comparable to similar measures reported by other gold producers. For a discussion of the
composition and usefulness of these measures and reconciliation of each of them to the most directly comparable financial
information presented in the annual consolidated financial statements prepared in accordance with IFRS, see “Non-
GAAP Financial Performance Measures” in this MD&A.
This MD&A also contains information as to estimated future total cash costs per ounce, AISC per ounce and minesite
costs per tonne. The estimates are based upon the total cash costs per ounce, AISC per ounce and minesite costs per
tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of
these actual costs referred to below under “Non-GAAP Financial Performance Measures”, do not include production
costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is
developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to
the most comparable IFRS measure.
Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a
period contained in products that have been or will be sold by the Company, whether such products are sold during the
period or held as inventories at the end of the period. Unless otherwise stated per ounce measures such as “production
costs per ounce”, “total cash costs per ounce” and “AISC per ounce” are reported on a “per ounce of gold produced”
basis.
The mineral reserve and mineral resource estimates contained in this MD&A have been prepared in accordance with the
Canadian Securities Administrators’ (the “CSA”) National Instrument 43-101 “Standards of Disclosure for Mineral
Projects” (“NI 43-101”). See “Note to Investors Concerning Estimates of Mineral Reserves and Mineral Resources”.
Meaning of “including” and “such as”: When used in this MD&A the terms “including” and “such as” mean including and
such as, without limitation.
Executive Summary
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since its formation in 1972.
The Company’s mines are located in Canada, Australia, Finland and Mexico, with exploration and development activities
in these countries as well as the United States. The Company and its shareholders have full exposure to gold prices due
to the Company’s long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year
since 1983.
Agnico Eagle earns a significant proportion of its revenue and cash flow from the production and sale of gold in both dore
bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of by-product
metals, primarily silver, zinc and copper. In 2023, Agnico Eagle recorded production costs per ounce of $853 and total
cash costs per ounce(i) of $865 on a by-product basis and $893 on a co-product basis on payable production of 3,439,654
ounces of gold. The average realized price of gold increased by 8.3% from $1,797 per ounce in 2022 to $1,946 per ounce
of payable production in 2023.
Agnico Eagle’s operating mines and development projects are located in what the Company believes to be politically stable
countries that are supportive of the mining industry. The political stability of the regions in which Agnico Eagle operates
helps to provide confidence in its current and future prospects and profitability. This is important for Agnico Eagle as it
believes that many of its new mines and recently acquired mining projects have long-term mining potential.
Highlights
• On March 31, 2023, the Company completed the acquisition (the “Yamana Transaction”) of all of Yamana
Gold Inc.’s (“Yamana”) Canadian assets under a plan of arrangement pursuant to which Pan American Silver Corp.
(“Pan American”) acquired all of the common shares of Yamana and Yamana sold all of its Canadian assets to the
Company. The assets acquired included the 50% of the Canadian Malartic complex that the Company did not own,
a 100% interest in the Wasamac project, located in the Abitibi region of Quebec, and several other exploration
properties located in Ontario and Manitoba.
• On April 6, 2023, Agnico Eagle and Teck Resources Limited (“Teck”) entered into a joint venture shareholders’
agreement in respect of the San Nicolás copper-zinc development project located in Zacatecas, Mexico.
• On October 27, 2023, the Supreme Administrative Court of Finland (“SAC”) issued a decision that restored Kittila’s
operating permits. As a result, the environmental and water permits granted to the Company in 2020 remain valid
and production was able to continue at a rate of 2.0 million tonnes per annum (“mtpa”) in accordance with the
permit.
• Strong operational performance with payable production of 3,439,654 ounces of gold and production costs per
ounce of gold of $853 during 2023.
• Total cash costs per ounce in 2023 of $865 on a by-product basis and $893 on a co-product basis.
• All-in sustaining costs(ii) in 2023 of $1,179 on a by-product basis and $1,207 on a co-product basis.
• Proven and probable gold mineral reserves totaled 53.8 million ounces at December 31, 2023, a 10.5% increase
compared with 48.7 million ounces at December 31, 2022.
• In 2023, the Company recognized an impairment loss (net of tax) of $667.4 million, of which $594.0 million
related to the Macassa mine and $73.4 million related to the Pinos Altos mine.
• As at December 31, 2023, Agnico Eagle had strong liquidity with $348.8 million in cash and cash equivalents and
short-term investments along with approximately $1.2 billion in undrawn credit lines.
• The Company’s operations are located in mining-friendly regions that the Company believes have low political risk
and long-term mining potential.
• The Company continues to maintain its investment grade credit rating and believes it has adequate financial
flexibility to finance capital requirements at its mines and development projects from operating cash flow, cash and
cash equivalents, short-term investments and undrawn credit lines.
Notes:
(i)
Total cash costs per ounce on both a by-product and co-product basis are non-GAAP measures that are not standardized financial measures under IFRS. For a reconciliation to
production costs see “Non-GAAP Financial Performance Measures” below. Unless otherwise stated, in this MD&A, total cash costs per ounce is reported on a by-product basis.
(ii) All-in sustaining costs per ounce is a non-GAAP measure that is not a standardized financial measure under IFRS. For a reconciliation to production costs and a discussion of the
composition and usefulness of this non-GAAP measure see “Non-GAAP Financial Performance Measures”. Unless otherwise stated, in this MD&A, all-in sustaining cost per ounce
is reported on a by-product basis.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
1
• In February 2024, the Company replaced its $1.2 billion unsecured revolving bank credit facility with a new
$2.0 billion unsecured revolving bank credit facility, including an increased uncommitted accordion feature of
$1.0 billion, and having a maturity date of February 12, 2029.
• As at December 31, 2023 and March 15, 2024, the Company’s issued and outstanding common shares were
497,970,524 and 498,940,643, respectively.
• In February 2024, the Company declared a quarterly cash dividend of $0.40 per common share. Agnico Eagle has
declared a cash dividend every year since 1983.
Strategy
Agnico Eagle’s ability to consistently execute its business strategy has provided a solid foundation for growth.
The Company’s goals are to:
• Deliver on performance and growth expectations: Ensure our existing portfolio delivers on expectations, lowers
operational risk and generates free cash flow;
• Build and maintain a high-quality project pipeline: Ensure we develop a best-in-class project pipeline to replenish
reserves and production, while maintaining the quality, manageability and fit of our future portfolio;
• Develop our people: Develop and provide growth opportunities for our people and provide the skills infrastructure
to support the development of our operations and projects;
• Operate in a safe, socially and environmentally responsible manner: Create value for our shareholders while
operating in a safe, socially and environmentally responsible manner, as we contribute to the prosperity of our
people, their families and the communities in which we operate.
The three pillars – performance, pipeline, people – form the basis of Agnico Eagle’s success and competitive advantage.
By delivering on these pillars, the Company strives to continue to build its production base and generate increased value
for shareholders, while operating in a safe, socially and environmentally responsible manner, as we contribute to the
prosperity of our people, their families and the communities in which we operate.
2023 Developments
Acquisition of the Canadian Assets of Yamana
On March 31, 2023, the Company closed the Yamana Transaction under an arrangement agreement with Yamana and
Pan American pursuant to which Pan American acquired all of the issued and outstanding common shares of Yamana
and Yamana sold the subsidiaries and partnerships that held Yamana’s interests in its Canadian assets to Agnico Eagle,
including the 50% of the Canadian Malartic complex that the Company did not own, a 100% interest in the Wasamac
project, located in the Abitibi region of Quebec; and several other exploration properties located in Ontario and Manitoba.
The consideration paid by the Company in the Yamana Transaction consisted of approximately US$1.0 billion in cash and
36,177,931 common shares of Agnico Eagle. The acquisition increased the Company’s production, mineral reserves and
cash flow. The results of operations, cash flows and net assets of the Canadian assets of Yamana have been consolidated
with those of the Company from March 31, 2023 onward.
San Nicolás Copper-Zinc Project Joint Arrangement
On April 6, 2023, Agnico Eagle and Teck entered into a joint venture shareholders agreement in respect of the San Nicolás
copper-zinc development project located in Zacatecas, Mexico. The agreement provides that Agnico Eagle, through a
wholly-owned Mexican subsidiary, will subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I. de C.V. (“MSN”) for
$580.0 million, to be contributed as study and development costs are incurred by MSN. For governance purposes, the
agreement treats Agnico Eagle as a 50% shareholder of MSN regardless of the number of shares that have been issued to
Agnico Eagle or its affiliates, except in certain circumstances of default. On closing of the transaction, the Company
recorded the initial acquisition of the mineral property and a $265.1 million liability representing the minimum unavoidable
obligation under the agreement. For the year ended December 31, 2023, the Company has recorded contributions of
$11.0 million against the $290.0 million obligation. MSN submitted an Environmental Impact Assessment and permit
application for the San Nicolas project in January 2024 and is targeting completion of a feasibility study in 2025.
Normal Course Issuer Bid
On May 2, 2023, the Company received approval from the Toronto Stock Exchange (“TSX”) to renew its normal course
issuer bid (the “NCIB”), pursuant to which the Company may purchase up to $500.0 million of its common shares subject
2
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
to a maximum of 5% of its issued and outstanding common shares. Under the NCIB, the Company may purchase such
common shares on the open market at its discretion, during the period commencing on May 4, 2023 and ending on
May 3, 2024. Purchases under the NCIB will be made through the facilities of the TSX, the NYSE or other designated
exchanges and alternative trading systems in Canada and the United States in accordance with applicable regulatory
requirements. All common shares purchased under the NCIB will be cancelled. Shareholders may obtain a copy of the
notice of intention to make an NCIB, without charge, by contacting the Company.
Term Loan Facility
On April 20, 2023, the Company entered into a credit agreement with two financial institutions that provides a
$600.0 million unsecured term credit facility (the “Term Loan Facility”). The Company drew the full amount of the Term
Loan Facility on April 28, 2023. The Term Loan Facility matures and all indebtedness thereunder is due and payable on
April 21, 2025. The Term Loan Facility is available as a single advance in US dollars through Secured Overnight Financing
Rate (“SOFR”) and base rate advances, priced at the applicable rate plus a margin that ranges from 0.00% to 2.00%,
depending on the Company’s credit rating. Payment and performance of the Company’s obligations under the Term Loan
Facility are guaranteed by certain of its material subsidiaries (the “Guarantors” and, together with the Company, each an
“Obligor”).
The Term Loan Facility contained covenants that limit the actions of an Obligor in the same manner and to the same extent
as the Obligors are limited under the Company’s previous $1.2 billion unsecured revolving credit facility (the “Old Credit
Facility”). The Company was also required to maintain a total net debt to EBITDA ratio below a specified maximum value.
The events of default under the Term Loan Facility were the same as the events of default under the Old Credit Facility.
On February 12, 2024, the Term Loan Facility was amended to align the covenants, including the net debt to EBITDA ratio
covenant, and the events of default with those of the New Credit Facility (defined below).
New Credit Facility
On February 12, 2024, the Company entered into a credit agreement with a group of financial institutions that provides a
$2.0 billion unsecured revolving credit facility (the “New Credit Facility”). On the same day, the Company drew
$200.0 million on the New Credit Facility and used the proceeds of such draw to repay and terminate the Old Credit
Facility. The New Credit Facility matures and all indebtedness thereunder is due and payable on February 12, 2029. See
“Liquidity and Capital Resources – Financing Activities”.
Portfolio Overview
Canada – LaRonde Complex
The 100% owned LaRonde complex in northwestern Quebec includes the LaRonde mine and the LaRonde Zone 5 mine
(“LZ5”). The LaRonde mine is the Company’s oldest operating mine and achieved commercial production in 1988. In
2003, the Company acquired LZ5, which lies adjacent to and west of the LaRonde mine and was an open pit operation
under a previous owner. The LZ5 mine achieved commercial production in June 2018 as an underground operation with
ore processed at the LaRonde complex’s processing facilities.
Ore is processed at the LaRonde mill, which includes copper and zinc flotation circuits as well as precious metals recovery
and refining facilities. The mill produces doré bars containing gold and silver, as well as zinc and copper concentrates with
additional gold and silver. The plant has a daily capacity of 7,000 tonnes of ore and has been expanded four times since
it opened in 1988. In addition, a dedicated 2,000-tonnes/day carbon-in-leach (“CIL”) processing facility has the capacity
to treat ore and refine concentrates into doré bars.
LaRonde Mine
The LaRonde mine extension, the portion of the mine below level 245, achieved commercial production in
December 2011, and under current mine plans is expected to be in production through 2034. Access to LaRonde’s
underground mining operation is through the 2,250-metre-deep Penna Shaft, which was completed in 2000. An internal
winze is used to hoist materials from depth to facilities on level 215, approximately 2,150 metres below surface.
The LaRonde mine has gradually been implementing automation for its production activities and is increasingly relying on
automated technology.
The risk of more frequent and larger seismic events has increased as the Company mines deeper at LaRonde. The
Company continues to adjust its mining methods, ground support and protocols to address seismic activity in the deeper
portions of the mine, refer to the operations outlook section below for additional details.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
3
The LaRonde mine’s proven and probable mineral reserves were approximately 2.2 million ounces at December 31,
2023.
LaRonde Zone 5 Mine
In 2003, the Company acquired the Bousquet property, which adjoins the LaRonde mine to the west and hosts the
Bousquet Zone 5 deposit. Commercial production at LZ5 was achieved in June 2018 and, under current mine plans, is
expected to be in production through 2032. LZ5 is mined from underground ramp access.
The LZ5 mine has gradually been implementing automation for its production activities and is increasingly relying on
automated technology.
The LZ5 mine’s proven and probable mineral reserves were approximately 0.6 million ounces at December 31, 2023.
Canada – Canadian Malartic Complex
The 100% owned Canadian Malartic complex is located within the town of Malartic, Quebec, approximately 25 kilometres
west of the City of Val-d’Or and 80 kilometres east of City of Rouyn-Noranda. In 2014, Agnico Eagle acquired 50% of the
Canadian Malartic complex, which was held jointly with Yamana through the Canadian Malartic General Partnership. On
March 31, 2023, following the completion of the Yamana Transaction, Agnico Eagle now owns 100% of the Canadian
Malartic complex.
The Canadian Malartic complex is comprised of the open-pit Canadian Malartic mine and the underground Odyssey mine
and a processing plant.
Under current mine plans, the Company expects the complex will be in production through 2042.
Canadian Malartic has historically been a large open-pit operation using large-scale excavators and trucks. The Canadian
Malartic pit was depleted in 2023 and open pit operations continue at the Barnat pit. Mining at the Odyssey project will be
done using underground methods. The mine design at the Odyssey project includes a 1,800 metre deep production-
services shaft with an expected capacity of approximately 20,000 tonnes of ore per day once commissioned. During the
second quarter of 2023, production using the ramp at the Odyssey South deposit commenced.
Ore is processed at the Canadian Malartic mineral processing complex, which has a 60,000 tonnes per day nominal
throughput capacity.
Agnico Eagle’s proven and probable mineral reserves at December 31, 2023 at the Canadian Malartic complex were
approximately 7.9 million ounces, including 5.2 million ounces at the East Gouldie deposit.
Canada – Goldex Mine
The 100% owned Goldex mine is located in the city of Val d’Or in northwestern Quebec, approximately 60 kilometres and
25 kilometres east of the Company’s LaRonde and Canadian Malartic complexes, respectively, and achieved commercial
production from the M and E satellite zones in October 2013. The Deep 1 Zone achieved commercial production in
July 2017. Production from the Deep 1 Zone is expected to extend Goldex’s mine life through 2031 under current mine
plans.
Ore from the Goldex mine is treated using a two-stage crushing process, followed by a two-stage grinding circuit that
consists of a semi-autogenous grinding mill and a ball mill.
During the second quarter of 2022, the Company approved the development of the Akasaba West project. The Akasaba
West project is located approximately 30 kilometres from the Goldex mine and is expected to contribute approximately
1,500 tonnes of ore per day to throughput at the mill. Shipment of ore for processing commenced during the fourth
quarter of 2023. Ore from the Akasaba West project will be processed at the Goldex mill.
The Goldex mine’s proven and probable mineral reserves were approximately 0.9 million ounces at December 31, 2023.
The Akasaba West project’s proven and probable mineral reserves were approximately 0.1 million ounces at December 31,
2023.
Canada – Meliadine Mine
In 2010, Agnico Eagle acquired its 100% interest in the Meliadine mine project in Nunavut, Canada through its acquisition
of Comaplex Minerals Corp. The Meliadine mine is located near the western shore of Hudson Bay in the Kivalliq region of
Nunavut, approximately 25 kilometres north of the hamlet of Rankin Inlet and 290 kilometres southeast of the
Meadowbank complex.
4
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Commercial production was achieved at the Meliadine mine in May 2019. In 2020, the Company’s Board of Directors
(“Board”) approved the Phase 2 expansion at Meliadine which accelerated the development of the Tiriganiaq open pit,
where commercial production was achieved in 2021. Under current mine plans, the Meliadine mine is expected to be in
production through 2032.
Over the course of its planned operations, mining at Meliadine will be carried out through ten open pits and two
underground mining operations. Underground access is by decline, with long-hole mining methods. The mill employs a
conventional gold circuit comprising crushing, grinding, gravity separation and cyanide leaching with a carbon-in-leach
circuit, followed by cyanide destruction and filtration of the tailings for dry stacking. In 2023, milling rates averaged 5,255
tonnes per day. The Phase 2 mill expansion project, with targeted completion in mid-2024, is expected to increase
throughput to 6,000 tonnes per day.
The Meliadine mine’s proven and probable mineral reserves were approximately 3.5 million ounces at December 31,
2023.
Canada – Meadowbank Complex
In 2007, the Company acquired Cumberland Resources Ltd., which held a 100% interest in the Meadowbank gold
project in Nunavut, Canada. Commercial production was achieved at the Meadowbank mine in March 2010. Mining
operations at the Meadowbank site ceased in 2019, but the Meadowbank mill and other infrastructure remain active in
support of operations at the Amaruq deposit.
The 100% owned Amaruq deposit is located approximately 50 kilometres northwest of the Meadowbank mine and was
approved for development in 2016. A 64-kilometre road from the Meadowbank site to the Amaruq deposit was completed
in August 2017 and it was widened for ore haulage in November 2018. Ore from the Amaruq satellite deposit is hauled to
the Meadowbank mill using long haul off-road type trucks. Commercial production was achieved at the Amaruq satellite
deposit in September 2019 and at the Amaruq underground deposit in August 2022. Under current mine plans, the
Amaruq deposit is expected to be in production through 2028.
The Amaruq mining operation uses the existing infrastructure at the Meadowbank mine, including the mill, tailings
facilities, camp and airstrip. The process design at the Meadowbank mill consists of two-stage crushing, grinding, gravity
concentration, cyanide leaching and gold recovery in a carbon-in-pulp circuit with a current capacity of 9,840 tonnes
processed per day.
The Meadowbank complex’s proven and probable mineral reserves were approximately 1.8 million ounces at
December 31, 2023.
Canada – Hope Bay Project
On February 2, 2021, Agnico Eagle completed the acquisition of TMAC Resources Inc. (“TMAC”) comprising a 100%
interest in the Hope Bay property, which is located in the Kitikmeot region of Nunavut. The 80-kilometre long Hope Bay
greenstone belt hosts three gold deposits (Doris, Madrid and Boston), with historical mineral reserves and mineral
resources and over 90 regional exploration targets.
In late September 2021 and again in mid-October 2021, there were a significant number of COVID-19 cases identified at
site. As a precautionary measure, the Company decided to suspend mining and milling operations. The Company started
to ramp-up exploration and underground activities in mid-November 2021. However, with increasing cases of COVID-19
in December 2021, the Company again reduced all activities at site to essential services only.
The Company suspended production activities at the Hope Bay project in February 2022 and since that time the
Company’s primary focus on the project is to accelerate exploration activities and the evaluation of larger production
scenarios.
The Hope Bay project’s proven and probable mineral reserves were approximately 3.4 million ounces at December 31,
2023.
Finland – Kittila Mine
The 100% owned Kittila mine in northern Finland was added to the Company’s portfolio through the acquisition of
Riddarhyttan Resources AB in 2005. The Kittila mine is located in the Lapland region of northern Finland, approximately
900 kilometres north of Helsinki and 150 kilometres north of the Arctic Circle. Construction at the Kittila mine was
completed in 2008 and commercial production was achieved in May 2009. Under current mine plans, the Kittila mine is
expected to be in production through 2035.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
5
Ore is treated by grinding, flotation, pressure oxidation, and carbon-in-leach circuits. Ore is processed in a surface
processing plant with a current capacity of 6,000 tonnes per day.
In February 2018, the Board approved an expansion to increase throughput rates at Kittila to 2.0 mtpa from the current
rate of 1.6 mtpa. This expansion includes the construction of a 1,044-metre deep shaft, a processing plant expansion as
well as other infrastructure and service upgrades.
Shaft sinking was completed in the third quarter of 2022, the construction and commissioning of a nitrogen removal plant
was completed in the fourth quarter of 2022. The installation and commissioning of the production and service hoists was
completed in the third quarter of 2023.
In 2020, Agnico Eagle Finland Oy (“Agnico Finland”) was granted environmental and water permits necessary to enlarge
the CIL2 tailings storage facility, expand the operations to 2.0 mtpa and build a new discharge waterline. These permits
were subsequently appealed to various levels of superior courts but, in October 2023, were ultimately found to be valid by
the Supreme Administrative Court of Finland (“SAC”). Prior to the SAC’s final decision, the Company reduced its
underground production levels to comply with the mining volume requirements, operating under the previous mining
permit at a 1.6 mtpa rate though maintaining operational flexibility to reach the 2.0 mtpa volume if permitted. On
October 27, 2023, the SAC confirmed that the permits granted to Agnico Finland were valid and production could proceed
at a rate of 2.0 mtpa in accordance with the permit. The mining rate for the full year of 2023 was 2.0 mtpa.
Proven and probable mineral reserves at the Kittila mine were approximately 3.6 million ounces at December 31, 2023.
Canada – Detour Lake Mine
The Detour Lake mine is located in northeastern Ontario, approximately 300 kilometres northeast of Timmins and 185
kilometres by road northeast of Cochrane, within the northernmost portion of the Abitibi Greenstone Belt. The Company
acquired its 100% interest in the Detour Lake mine on February 8, 2022 as a result of the merger of equals (the “Merger”)
by way of plan of arrangement with Kirkland Lake Gold Ltd., and, under current mine plans, it is expected to be in
production through 2052.
Conventional truck-shovel open pit mining methods are used to mine the Detour Lake deposit, using large scale
equipment. The milling operation uses a conventional crushing, grinding, gravity, cyanidation and carbon-in-pulp
processing facility currently operating at approximately 24 million tonnes per year, with the Company targeting increasing
this rate to 28 million tonnes per year late in the second half of 2024.
The West Detour project is a proposed expansion of the Detour Lake mine. The project is intended to provide additional
ore to feed the existing Detour Lake processing plant by developing two satellite open pits and the additional westward
expansion of the currently operating open pit.
The Detour Lake mine’s proven and probable mineral reserves were approximately 19.9 million ounces at December 31,
2023.
Canada – Macassa Mine
The 100% owned Macassa mine, located in the historic gold mining region of Kirkland Lake, Ontario, was acquired as a
result of the Merger. Production at Macassa first commenced in 1933, with the mine being operated continuously until
1999, when operations were suspended due to low gold prices. Production resumed in 2002 and in 2005, the South Mine
Complex (“SMC”) was discovered. The SMC is a high-grade zone that resulted in significant grade improvement at the
mine and an increase in production levels above historic averages. Macassa was among the first mines globally to introduce
battery-electric vehicles. Under current mine plans, the Macassa mine is expected to be in production through 2030.
Macassa is primarily mined from underground shaft access. In 2023, as part of the optimization efforts, the Company
incorporated the sourcing of additional production from near surface deposits at Macassa and the neighbouring
Amalgamated Kirkland deposits to its production profile and guidance. Both of these areas are accessible from a shallow
ramp at the Macassa mine.
During the first quarter of 2023, the Company completed the commissioning of Shaft#4, a 21.5-foot diameter, concrete-
lined shaft that is expected to, among other things, enable more effective underground exploration to the east of the SMC,
improve ventilation and general working conditions in the mine, and support higher levels of production and lower unit
costs. The new four-compartment shaft will have a total hoisting capacity of 4,000 tonnes per day (ore and waste) and is
an important component of the plan to increase production at Macassa.
Ore is processed on-site at the Macassa mill which has capacity to process 1,650 tonnes of ore per day.
6
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
The Macassa mine’s proven and probable mineral reserves were approximately 2.1 million ounces at December 31,
2023.
Canada – Kirkland Lake Project
The Company acquired 50% of the Kirkland Lake project in 2014 as part of its initial acquisition of the Canadian Malartic
complex and, in 2018, acquired the remaining 50% that it did not already own, resulting in Agnico Eagle’s 100% ownership
of the project.
The Kirkland Lake project is comprised of the Upper Canada and Upper Beaver properties. The Upper Beaver deposit is
located approximately 27 kilometres from the Macassa mine. The Upper Canada deposit lies approximately 6 kilometres
southwest of the Upper Beaver property, and 1.6 kilometres north of the main Larder Lake-Cadillac Deformation Zone,
within a 300 to 400-metre-wide strongly altered deformation corridor. The properties lie within the southern Abitibi
Greenstone Belt of the Superior Province of the Canadian Shield, approximately 110 kilometres west of Agnico Eagle’s
LaRonde mine.
The Upper Beaver deposit’s proven and probable mineral reserves were approximately 1.4 million ounces at December 31,
2023. No proven and probable mineral reserves have been declared at the Upper Canada project.
Canada – Hammond Reef Project
The Company acquired 50% of the Hammond Reef project in 2014 as part of its initial acquisition of the Canadian
Malartic complex and, in 2018, acquired the remaining 50% that it did not already own, resulting in Agnico Eagle’s 100%
ownership of the project. The property covers approximately 32,070 hectares and is located in Northwestern Ontario
approximately 260 kilometres west of Thunder Bay. The property is accessible via secondary gravel roads from the town
of Atikokan, which is located approximately 30 kilometres to the southwest.
The Hammond Reef deposit is a high tonnage, low grade gold deposit that is primarily hosted in variably sheared and
altered granitoid rocks. Gold mineralization is typically associated with fine grained pyrite mineralization that is often
associated with fractures, veinlets and veins filled with various combinations of chlorite, calcite and quartz.
In January 2020, the Company purchased a 2% net smelter royalty (“NSR”) on the Hammond Reef project from Kinross
Gold Corporation for $12.0 million. The property remains subject to a 2% NSR held by Osisko Royalties.
The Hammond Reef deposit’s proven and probable mineral reserves were approximately 3.3 million ounces at
December 31, 2023.
Australia – Fosterville Mine
The Fosterville mine is located approximately 20 kilometres northeast of the city of Bendigo and 130 kilometres north of
the city of Melbourne in Victoria, Australia. The Company acquired its 100% interest in the Fosterville mine on February 8,
2022 as a result of the Merger and, under current mine plans, it is expected to be in production through 2033.
The mine is located in an area with well-developed infrastructure and is accessible by paved roads. Access to the
underground workings is through two portals, located in the Ellesmere and Falcon open pits. Underground mining is
conducted using a conventional fleet including jumbo trucks, production drills, loaders, trucks and ancillary equipment.
Ore is processed at the Fosterville mill which has a capacity of 2,275 tonnes per day.
The Fosterville property includes approximately 1,400 sq. kilometres of additional land package with numerous brownfield
and greenfield exploration targets that are a key aspect of the Company’s ongoing exploration efforts.
The Fosterville mine’s proven and probable mineral reserves were approximately 1.7 million ounces at December 31,
2023.
Mexico – Pinos Altos Mine
In 2006, the Company completed the acquisition of the Pinos Altos property in northern Mexico, which was then an
advanced stage exploration property. Commercial production was achieved at the Pinos Altos mine in November 2009
and, under current mine plans, the mine is expected to be in production through 2028. A shaft sinking project was
completed in June 2016 at the Pinos Altos mine and during 2018, the site transitioned into being a predominantly
underground mining operation.
In 2020, the Company started underground and open pit production at Sinter, located approximately 2 kilometres
northwest of the Pinos Altos minesite and depleted the Bravo pit at Creston Mascota in the third quarter of 2020, with
residual gold leaching continuing through 2023.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
7
Initial production at the Cubiro satellite deposit is expected in the second half of 2024. Once production commences,
Cubiro is expected to provide additional production flexibility to the Pinos Altos operations.
At Reyna de Plata, open pit pre-stripping activities at Pit 1 were completed in the fourth quarter of 2022 and ore production
commenced as planned.
Ore from the Pinos Altos mine is treated by one of two processes: conventional processing in a mill for higher-grade ore;
and heap-leaching for lower grade ore. The conventional, 5,500 tonnes per day processing plant includes circuits for
crushing, grinding, gravity concentration and agitated leaching followed by counter-current decantation.
The Pinos Altos mine’s proven and probable mineral reserves (including satellite deposits) were approximately 0.5 million
ounces at December 31, 2023.
Mexico – La India Mine
Agnico Eagle acquired 100% of La India project, which is located approximately 70 kilometres northwest of the Pinos
Altos mine and approximately 200 kilometres east of Hermosillo in Sonora, northern Mexico in January 2012. Commercial
production was achieved in February 2014. Mining operation ceased during the fourth quarter of 2023 and processing
activities of ore currently stacked on the heap leach pads is expected to continue through 2024.
The La India mine’s proven and probable mineral reserves (including satellite deposits) were fully mined as of
December 31, 2023 and residual gold is expected to be produced from ore currently stacked on the heap leach pads.
Key Performance Drivers
The key drivers of financial performance for Agnico Eagle for the year-ended December 31, 2023 include:
• the spot price of gold, silver, zinc and copper;
• production volumes;
• production costs; and
• US dollar/Canadian dollar, US dollar/Australian dollar, US dollar/Euro and US dollar/Mexican peso exchange rates.
Details on future drivers of financial performance are discussed in the Outlook section of this MD&A.
Spot Price of Gold, Silver, Zinc and Copper
GOLD ($ per ounce)
2023
2022
% Change
High price
$2,078
$2,039
1.9%
Low price
$1,811
$1,629
11.2%
Average market price
$1,941
$1,800
7.8%
Average realized price
$1,946
$1,797
8.3%
In 2023, the average market price per ounce of gold was 7.8% higher than in 2022. The Company’s average realized price
per ounce of gold in 2023 was 8.3% higher than in 2022.
8
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
SILVER ($ per ounce)
2023
2022
% Change
High price
$26.07
$26.18
(0.4)%
Low price
$20.09
$17.77
13.1%
Average market price
$23.35
$21.73
7.5%
Average realized price
$23.72
$21.63
9.7%
In 2023, the average market price per ounce of silver was 7.5% higher than in 2022. The Company’s average realized
price per ounce of silver in 2023 was 9.7% higher than in 2022.
ZINC ($ per tonne)
COPPER ($ per tonne)
Agnico Eagle’s average realized price year-over-year for zinc decreased by 21.5% and the average realized price year-
over-year for copper increased by 1.9%.
By-product metals are mainly produced at the LaRonde complex (silver, zinc and copper) and the Pinos Altos mine
(silver). Net by-product (primarily silver, zinc and copper) revenue is treated as a reduction of production costs in
calculating total cash costs per ounce of gold produced on a by-product basis and all-in sustaining costs per ounce of gold
produced on a by-product basis.
Production Volumes and Costs
Changes in production volumes have a direct impact on the Company’s financial results. Payable production of gold was
3,439,654 ounces in 2023, an increase of 9.7% compared with 3,135,007 ounces in 2022. The increase was primarily
due to the contribution of production volumes from the Canadian Malartic complex following the Yamana Transaction,
which closed on March 31, 2023, and increased production at the Meadowbank complex and the Macassa, Detour Lake
and Kittila mines. Partially offsetting the overall increase in gold production was a decrease in gold production at the
Fosterville mine and LaRonde complex.
Production costs are discussed in detail in the Results of Operations section below.
Foreign Exchange Rates (Ratio to US$)
The exchange rate of the Canadian dollar, Australian dollar, Euro and Mexican peso relative to the US dollar is an important
financial driver for the Company for the following reasons:
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
9
• all revenues are earned in US dollars;
• a significant portion of operating costs at the LaRonde, Canadian Malartic and Meadowbank complexes and the
Detour Lake, Macassa, Meliadine and Goldex mines are incurred in Canadian dollars;
• a significant portion of operating costs at the Fosterville mine are incurred in Australian dollars;
• a significant portion of operating costs at the Kittila mine are incurred in Euros, and
• a significant portion of operating costs at the Pinos Altos and La India mines are incurred in Mexican pesos.
The Company mitigates part of its foreign currency exposure by using currency hedging strategies.
CANADIAN DOLLAR
AUSTRALIAN DOLLAR
MEXICAN PESO
EURO
On average, the Canadian dollar and Australian dollar weakened relative to the US dollar in 2023 compared to
2022, decreasing costs denominated in local currency when translated to US dollars for reporting purposes. The Euro and
Mexican Peso strengthened relative to the US dollar in 2023 compared with 2022, increasing costs denominated in the
local currency when translated into US dollars for reporting purposes.
Results of Operations
On March 31, 2023, Agnico Eagle completed the Yamana Transaction. Accordingly, contributions from the 100% interest
in the Canadian Malartic complex have been included in the consolidated statements of income for the year ended
December 31, 2023 since that time while the comparative periods reflect the previously held 50% interest in the Canadian
Malartic complex.
On February 8, 2022, Agnico Eagle completed the Merger with Kirkland Lake Gold Ltd. (“Kirkland”). Accordingly, the
contributions from the Detour Lake, Macassa and Fosterville mines included in the comparative periods only includes
results from February 8, 2022.
10
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Agnico Eagle reported net income of $1,941.3 million, or $3.97 per share, in 2023 compared with net income of
$670.2 million, or $1.53 per share, in 2022 and net income of $561.9 million, or $2.31 per share in 2021. Agnico Eagle
reported adjusted net income(i) of $1,095.9 million, or $2.24 per share(i), in 2023 compared with adjusted net income of
$1,003.6 million, or $2.29 per share, in 2022 and adjusted net income of $608.0 million, or $2.49 per share in 2021. In
2023, operating margin(ii) increased to $3,693.6 million from $3,097.8 million in 2022. In 2021, operating margin was
$2,096.5 million.
Revenues from Mining Operations
Revenues from mining operations, net of selling costs, increased by $885.7 million, or 15.4%, to $6,626.9 million in 2023
from $5,741.2 million in 2022 primarily due to a 6.8% increase in the sales volume of gold(iii) and higher gold prices. The
increased contribution of gold sales volume from the Canadian Malartic complex following the Yamana Transaction, the
Meadowbank complex and the Macassa mine, partially offset by lower sales volume from the Fosterville mine and the
LaRonde complex and the Meliadine mine. Revenues from mining operations were $3,869.6 million in 2021.
Sales of precious metals (gold and silver) accounted for 99.6% of revenues from mining operations in 2023, similar to the
99.5% in 2022. Sales of precious metals (gold and silver) accounted for 99.0% of revenues in 2021.
The table below sets out revenues from mining operations, payable production volumes and sales volumes by metal:
2023
2022
2021
(thousands of United States dollars)
Revenues from mining operations:
Gold
$6,540,077
$5,656,201
$3,760,821
Silver
63,544
55,212
69,694
Zinc
4,736
9,390
16,304
Copper
18,552
20,359
22,806
Total revenues from mining operations
$6,626,909
$5,741,162
$3,869,625
Payable production:
Gold (ounces)
3,439,654
3,135,007
2,086,405
Silver (thousands of ounces)
2,408
2,292
2.607
Zinc (tonnes)
7,702
8,195
8,837
Copper (tonnes)
2,617
2,901
2,955
Payable metal sold(iii):
Gold (ounces)
3,364,132
3,148,593
2,080,631
Silver (thousands of ounces)
2,354
2,354
2.609
Zinc (tonnes)
8,526
6,727
10,803
Copper (tonnes)
2,630
2,916
2,973
Revenues from gold, net of selling costs, increased by $883.9 million or 15.6% in 2023 compared with 2022 primarily
due to a higher gold price and increase in the sales volume of gold(iii) which was the result of increased contribution of gold
sales volume from the Canadian Malartic complex following the Yamana Transaction, the Meadowbank complex and the
Notes:
(i)
Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under IFRS. For a reconciliation to net income and
net income per share and discussion of the composition and usefulness of these non-GAAP measure see “Non-GAAP Financial Performance Measures”.
(ii) Operating margin 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
see “Non-GAAP Financial Performance Measures”.
(iii) Payable metals sold excludes ounces from pre-commercial production for the years ended December 31, 2021.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
11
Macassa mine, partially offset by lower sales volume from the Fosterville, LaRonde and Meliadine mines. The Company’s
average realized price of gold increased by 8.3% to $1,946 in 2023 compared to $1,797 in 2022, and the sales volume
of gold increased by 6.9% to 3,364,132 ounces in 2023 compared to 3,148,593 ounces in 2022.
Revenues from silver, net of selling costs, increased by $8.3 million or 15.1% in 2023 compared with 2022 primarily due
to a 9.7% increase in the average realized price of silver between periods. Revenues from zinc, net of selling costs,
decreased by $4.7 million or 49.6% in 2023 compared with 2022 primarily due to a 21.5% decrease in the realized price
of zinc between periods. Revenues from copper, net of selling costs, decreased by $1.8 million or 8.9% in 2023 compared
with 2022 primarily due to a 9.8% decrease in the volume of copper tonnes sold between periods.
Production Costs
Production costs increased to $2,933.3 million in 2023 compared with $2,643.3 million in 2022 primarily due to the
contribution from the Canadian Malartic complex following the Yamana Transaction, the recognition in 2023 of fair value
adjustments to inventory due to the Yamana Transaction and higher production costs at the Meadowbank complex and
the Meliadine, La India and Macassa mines. These increases were partially offset by lower production costs at the
Fosterville and Detour Lake mines primarily caused by the recognition in the 2022 comparative period of fair value
adjustments to inventory at those mines. Production costs were $1,773.1 million in 2021.
The table below sets out production costs by mine:
2023
2022
2021
(thousands of United States dollars)
LaRonde mine
$ 218,020
$ 213,393
$ 232,392
LaRonde Zone 5 mine
81,624
72,096
56,380
LaRonde complex
299,644
285,489
288,772
Canadian Malartic complex(i)
465,814
235,735
242,589
Goldex mine
112,022
103,830
96,181
Meliadine mine
343,650
318,141
250,822
Meadowbank complex
524,008
442,681
408,863
Hope Bay project
—
—
83,118
Kittila mine
205,857
210,661
192,742
Detour Lake mine(ii)
453,498
489,703
—
Macassa mine(ii)
155,046
129,774
—
Fosterville mine(ii)
131,298
204,649
—
Pinos Altos mine
145,936
144,489
141,488
Creston Mascota mine
—
1,943
8,165
La India mine
96,490
76,226
60,381
Total production costs
$2,933,263
$2,643,321
$1,773,121
Note:
(i)
The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter.
(ii) The information set out in this table reflects the Company’s acquisition of the Detour Lake, Macassa and Fosterville mines in the Merger, following its closing on February 8, 2022.
Production costs at the LaRonde mine were $218.0 million in 2023, a 2.2% increase compared with 2022 production
costs of $213.4 million. The increase was primarily due to higher underground maintenance costs associated with
supplemental ground support activities, partially offset by the weakening of the Canadian dollar relative to the US dollar
between periods. During 2023, the LaRonde mine processed an average of 4,112 tonnes of ore per day compared with
4,575 tonnes of ore per day during 2022. Production costs per tonne increased to C$196 in 2023 compared with C$166
12
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
in 2022 primarily due to fewer tonnes processed resulting from lower development rates in the underground mine related
to increased supplemental ground support requirements at the East mine and revised seismic protocols, partially offset by
lower milling costs. Minesite costs per tonne(i) increased to C$201 in 2023 compared with C$162 in 2022 due to lower
throughput and higher production costs.
Production costs at the LZ5 mine were $81.6 million in 2023, a 13.2% increase compared with $72.1 million in 2022
primarily due to higher underground mining and maintenance costs partially offset by the weakening of the Canadian
dollar relative to the US dollar between periods. During 2023, the LZ5 mine processed an average of 3,170 tonnes of ore
per day compared with 3,140 tonnes of ore per day during 2022. Production costs per tonne increased to C$95 in 2023
compared with C$82 in 2022 primarily due to higher production costs as noted above. Minesite costs per tonne increased
to C$91 in 2023 compared with C$81 in 2022 primarily due to higher production costs.
Attributable production costs at the Canadian Malartic complex were $465.8 million in 2023, a 97.6% increase compared
with 2022 production costs of $235.7 million. This increase was primarily due to the impact of the change in
ownership percentage between periods as a result of the Yamana Transaction and the recognition of fair value adjustments
to inventory resulting from the Yamana Transaction and the consumption of stockpiles, partially offset by the weakening of
the Canadian dollar relative to the US dollar between periods. During 2023, the Canadian Malartic complex processed an
average of 53,685 tonnes of ore per day on a 100% basis compared with 53,534 tonnes of ore per day in 2022. Production
costs per tonne increased to C$36 in 2023 compared with C$31 in 2022, primarily due to fair value adjustments to
inventory due to the Yamana Transaction and the consumption of stockpiles. Minesite costs per tonne increased to C$39
in 2023 compared with C$35 in 2022 primarily due to the consumption of stockpiles.
Production costs at the Goldex mine were $112.0 million in 2023, a 7.9% increase compared with $103.8 million in 2022
primarily due to higher underground mining and maintenance costs, partially offset by the weakening of the Canadian
dollar relative to the US dollar between periods. During 2023, the Goldex mine processed an average of 7,910 tonnes of
ore per day compared with 8,055 tonnes of ore per day during 2022. Production costs per tonne increased to C$52 in
2023 compared with C$46 in 2022 primarily due to higher production costs and lower throughput. Minesite costs per
tonne increased to C$53 in 2023 compared with C$47 in 2022 for the same reasons as described above for the increase
in production costs per tonne.
Production costs at the Meliadine mine were $343.7 million in 2023, a 8.0% increase compared with 2022 production
costs of $318.1 million primarily due to higher mining, milling and logistics costs and the timing of inventory sales, partially
offset by an increase in capitalized deferred stripping costs and the weakening of the Canadian dollar relative to the US
dollar between periods. During 2023, the Meliadine mine processed an average of 5,255 tonnes per day compared with
4,814 tonnes of ore per day during 2022. Production costs per tonne increased to C$241 in 2023 compared with C$232
in 2022, primarily due to higher production costs, partially offset by higher throughput. Minesite costs per tonne increased
to C$249 in 2023 compared with C$234 in 2022 for the same reasons as described above for the increase in production
costs per tonne.
Production costs at the Meadowbank complex were $524.0 million in 2023, a 18.4% increase compared with 2022
production costs of $442.7 million, primarily due to an increase in milling and mining costs, partially offset by an increase
in capitalized deferred stripping costs, timing of inventory sales and the weakening of the Canadian dollar relative to the
US dollar between periods. During 2023, the Meadowbank complex processed an average of 10,529 tonnes of ore per
day compared with 10,244 tonnes of ore per day during 2022. Production costs per tonne increased to C$183 in 2023
compared with C$154 in 2022 primarily due to higher production costs, partially offset by an increase in throughput.
Minesite costs per tonne increased to C$179 in 2023 compared with C$157 in 2022 for the same reasons as described
above for the increase in production costs per tonne.
The Company completed the acquisition of TMAC, which previously owned the Hope Bay project, on February 2, 2021.
Due to a significant number of COVID-19 cases in the fourth quarter of 2021, the Company reduced all activities at site to
essential services only. In 2022 and 2023, production activities remained suspended and the primary focus is on
accelerating exploration and the evaluation of potentially larger production scenarios.
Production costs at the Kittila mine were $205.9 million in 2023, a 2.3% decrease compared with 2022 production costs
of $210.7 million, primarily due to the timing of inventory sales, partially offset by higher underground maintenance costs.
During 2023, the Kittila mine processed an average of 5,353 tonnes of ore per day compared with 5,274 tonnes of ore per
day during 2022. Production costs per tonne decreased to €98 in 2023 compared with €103 in 2022, primarily due to
Note:
(i)
Minesite costs per tonne is a non-GAAP measures that is not a standardized financial measure under IFRS. For a reconciliation to production costs and a discussion of the
composition and usefulness of this measure see “Non-GAAP Financial Performance Measures”.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
13
lower production costs and higher throughput in 2023. Minesite costs per tonne decreased to €99 in 2023 compared with
€101 in 2022 due to for the same reasons described above for the decrease in production costs per tonne.
Production costs at the Detour Lake mine were $453.5 million in 2023, a 7.4% decrease compared with 2022 production
costs of $489.7 million, primarily due to the recognition, in 2022, of fair value adjustments to inventory and the weakening
of the Canadian dollar relative to the US dollar between periods, partially offset by higher mining costs. During 2023, the
Detour Lake mine processed an average of 69,685 tonnes of ore per day compared with 69,667 tonnes of ore per day
during 2022. Production costs per tonne decreased to C$24 compared with C$28 in 2022 for the same reasons as
described above for the decrease in production costs and the higher throughput in 2023. Minesite costs per tonne
increased to C$26 in 2023 compared with C$25 in 2022, primarily due to higher maintenance costs for mobile equipment
and spare parts during the period, partially offset by higher throughput. The Company acquired the Detour Lake mine on
February 8, 2022 as a result of the Merger.
Production costs at the Macassa mine were $155.0 million in 2023, a 19.5% increase compared with 2022 production
costs of $129.8 million, primarily due to higher mining costs as result of higher input prices and increased operational
volumes, partially offset by the weakening of the Canadian dollar relative to the US dollar between periods. During 2023,
the Macassa mine processed an average of 1,211 tonnes of ore per day compared with 856 tonnes of ore per day during
2022. Production costs per tonne decreased to C$475 compared with C$602 in 2022 primarily due to higher throughput,
partially offset by the increase in production costs. Minesite costs per tonne decreased to C$503 in 2023 compared with
C$577 in 2022 for the same reasons described above for the decrease in production costs per tonne. The Company
acquired the Macassa mine on February 8, 2022 as a result of the Merger.
Production costs at the Fosterville mine were $131.3 million in 2023, a 35.8% decrease compared with 2022 production
costs of $204.6 million, primarily due to the recognition, in 2022, of fair value adjustments to inventory with no comparative
in 2023, and the weakening of the Australian dollar relative to the US dollar between periods. During 2023, the Fosterville
mine processed an average of 1,784 tonnes of ore per day compared with 1,602 tonnes of ore per day during 2022.
Production costs per tonne decreased to A$304 compared with A$561 in 2022 primarily due to higher throughput and
lower production costs. Minesite costs per tonne decreased to A$301 in 2023 compared with A$356 in 2022 for the same
reasons described above for the decrease in production costs per tonne. The Company acquired the Fosterville mine on
February 8, 2022 as a result of the Merger.
Production costs at the Pinos Altos mine were $145.9 million in 2023, a 1.0% increase compared with 2022 production
costs of $144.5 million, primarily due to higher processing costs and the strengthening of the Mexican Peso relative to the
US dollar between periods. During 2023, the Pinos Altos mine processed an average of 4,537 tonnes of ore per day
compared with 4,137 tonnes of ore per day during 2022. Production costs per tonne decreased to $88 in 2023 compared
with $96 in 2022, primarily due to the higher throughput. Minesite costs per tonne decreased to $88 in 2023 compared
to $94 in 2022 for the same reasons described above for the decrease in production costs per tonne.
At Creston Mascota mine, gold production during 2023, 2022 and 2021 was the result of residual leaching. No additional
ore was stacked on the heap leach and therefore no production costs per tonne or minesite costs per tonne were reported
in 2023, 2022 and 2021.
Production costs at the La India mine were $96.5 million in 2023, a 26.6% increase compared with 2022 production
costs of $76.2 million primarily due to timing of inventory sales and the strengthening of the Mexican peso relative to the
US dollar between periods. During 2023, the La India mine processed an average of 8,247 tonnes of ore per day compared
with 13,978 tonnes of ore per day during 2022. During 2023, the La India mine stacked approximately 3.0 million tonnes
of ore on the leach pad compared with approximately 5.1 million tonnes of ore stacked in 2022. The decrease in tonnage
of ore stacked was primarily due to the cessation of mining activities at the El Realito pit. Production costs per tonne and
minesite costs per tonne increased to $32 in 2023 compared with $15 in 2022 primarily due to a decrease in tonnes of
ore stacked on the heap leach pad. Minesite costs per tonne increased to $32 in 2023 compared with $16 in 2022 for the
same reasons described above for the increase in production costs per tonne.
14
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Total Production Costs by Category 2023
Production costs per ounce, representing the weighted average of all of the Company’s producing mines, increased to
$853 in 2023 compared with $843 in 2022 and decreased from $861 in 2021. Total cash costs per ounce on a by-
product basis increased to $865 in 2023 compared with $793 in 2022. Total cash costs per ounce on a by-product basis
was $770 in 2021. Total cash costs per ounce on a co-product basis increased to $893 in 2023 compared with $825 in
2022. Total cash costs per ounce on a co-product basis was $829 in 2021. Set out below is an analysis of the change in
production costs per ounce and total cash costs per ounce at each of the Company’s mining operations.
• At the LaRonde mine, production costs per ounce increased to $924 in 2023 compared with $749 in 2022
primarily due to a 17.1% decrease in gold production and higher underground maintenance costs associated with
supplemental ground support activities which resulted in lower throughput, partially offset by the weakening of the
Canadian dollar relative to the US dollar between periods. Total cash costs per ounce on a by-product basis
increased to $840 in 2023 compared with $623 in 2022 primarily due to the factors described in production costs
per ounce combined with lower by-product revenues. Total cash costs per ounce on a co-product basis increased
to $1,067 in 2023 compared with $850 in 2022 due to the same factors described above for the increase in
production costs per ounce.
• At the LZ5 mine, production costs per ounce increased to $1,155 in 2023 compared with $1,008 in 2022, primarily
due to higher mining costs and the timing of inventory sales, partially offset by the weakening of the Canadian
dollar relative to the US dollar between periods. Total cash costs per ounce on a by-product basis increased to
$1,148 in 2023 compared with $1,021 in 2022 due to the factors described in production costs per ounce. Total
cash costs per ounce on a co-product basis increased to $1,158 in 2023 compared with $1,025 in 2022 due to the
factors described above for the increase in production costs per ounce.
• At the Canadian Malartic complex, production costs per ounce increased to $771 in 2023 compared with $716 in
2022 primarily due to the recognition in 2023 of fair value adjustments to inventory due to the Yamana Transaction,
the timing of inventory sales and lower deferred stripping adjustment, partially offset by the weakening of the
Canadian dollar relative to the US dollar between periods. Total cash costs per ounce on a by-product basis
increased to $824 in 2023 compared with $787 in 2022 due to the timing of inventory sales and lower deferred
stripping adjustment, partially offset by the weakening of the Canadian dollar relative to the US dollar between
periods as described above. Total cash costs per ounce on a co-product basis increased to $835 in 2023 compared
with $803 in 2022 due to the factors described above for the increase in production costs per ounce.
• At the Goldex mine, production costs per ounce increased to $795 in 2023 compared with $734 in 2022, primarily
due to higher underground mining and maintenance costs, partially offset by the weakening of the Canadian dollar
relative to the US dollar between periods. Total cash costs per ounce on a by-product basis increased to $820 in
2023 compared with $765 in 2022 due to the factors described in production costs per ounce, partially offset by
higher by-product revenue. Total cash costs per ounce on a co-product basis increased to $822 to in 2023
compared with $765 in 2022 due to the factors described above for the increase in production costs per ounce.
• At the Meliadine mine, production costs per ounce increased to $944 in 2023 compared with $853 in 2022
primarily due to higher milling and logistics costs and the timing of inventory sales, partially offset by the weakening
of the Canadian dollar relative to the US dollar between periods. Total cash costs per ounce on a by-product basis
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
15
increased to $980 in 2023 compared with $863 in 2022 due to the factors described above for the increase in
production costs per ounce. Total cash costs per ounce on a co-product basis increased to $981 in 2023 compared
with $865 in 2022 due to the factors described above for the increase in production costs per ounce.
• At the Meadowbank complex, production costs per ounce increased to $1,214 in 2023 compared with $1,184 in
2022 primarily due to higher mining, milling and logistics costs and timing of inventory sales, partially offset by a
15.5% increase in gold production and the weakening of the Canadian dollar relative to the US dollar between
periods. Total cash costs per ounce on a by-product basis decreased to $1,176 in 2023 compared with $1,210 in
2022 primarily due to the higher volume of gold produced, partially offset by the timing of inventory sales and
higher milling costs. Total cash costs per ounce on a co-product basis decreased to $1,183 in 2023 compared with
$1,216 in 2022 due to the factors described above for the increase in production costs per ounce.
• At the Kittila mine, production costs per ounce decreased to $878 in 2023 compared with $971 in 2022 primarily
due to timing of inventory sales and a 8% increase in gold production. Total cash costs per ounce on a by-product
basis decreased to $871 in 2023 compared with $980 in 2022 due to the factors described in production costs per
ounce. Total cash costs per ounce on a co-product basis decreased to $872 in 2023 compared with $981 in 2022
due to the factors described above for the decrease in production costs per ounce.
• At the Detour Lake mine, production costs per ounce decreased to $669 in 2023 compared with $752 in 2022
primarily due to a 4% increase in gold production, fair value adjustments to inventory on the purchase price
allocation recognized in 2022 with no comparative recognition occurring in 2023, and the weakening of the
Canadian dollar relative to the US dollar between periods. Total cash costs per ounce on a by-product basis
increased to $735 in 2023 compared with $657 in 2022 due to higher mining, maintenance and milling costs
caused by higher fuel and electricity prices and lower gold grades, partially offset by the weaker Canadian dollar
relative to the U.S. dollar. Total cash costs per ounce on a co-product basis increased to $738 in 2023 compared
with $663 in 2022 due to the factors described in production costs per ounce on a by-product basis.
• At the Macassa mine, production costs per ounce decreased to $678 in 2023 compared with $718 in 2022
primarily due to a 26% increase in gold production, fair value adjustments to inventory on the purchase price
allocation recognized in 2022 and the weakening of the Canadian dollar relative to the US dollar between periods.
Total cash costs per ounce on a by-product basis increased to $731 in 2023 compared with $683 in 2022 due to
higher mining costs, partially offset by an increase in the number of ounces produced in the period and the weaker
Canadian dollar relative to the U.S. dollar. Total cash costs per ounce on a co-product basis increased to $733 in
2023 compared with $684 in 2022 due to the factors described above for the increase in production costs per
ounce.
• At the Fosterville mine, production costs per ounce decreased to $473 in 2023 compared with $605 in 2022
primarily due to due to fair value adjustments to inventory on the purchase price allocation recognized in 2022 as
well as the effect of the weaker Australian dollar relative to the U.S. dollar, partially offset by fewer ounces produced
in the period due to lower gold grades. Total cash costs per ounce of gold produced on a by-product basis increased
to $488 in 2023 compared with $378 in 2022 primarily due to fewer ounces of gold produced in the current period
as a result of lower gold grades, partially offset by the weaker Australian dollar relative to the U.S. dollar. Total cash
costs per ounce of gold produced on a co-product basis increased to $489 in 2023 compared with $379 in 2022
due to the factors described above for the increase in production costs per ounce on a by-product basis.
• At the Pinos Altos mine, production costs per ounce decreased to $1,495 in 2023 compared with $1,497 in 2022,
primarily due to lower underground mining costs and an increase in the number of ounces of gold produced in the
current period, partially offset by higher open pit mining and milling costs and the strengthening of the Mexican
peso relative to the US dollar. Total cash costs per ounce on a by-product basis decreased to $1,229 in 2023
compared with $1,249 in 2022, for the same reasons described above for production costs per ounce, higher
by-product revenues and higher inventory adjustments. Total cash costs per ounce on a co-product basis increased
to $1,509 in 2023 compared with $1,477 in 2022 due to higher inventory adjustments.
• At the La India mine, production costs per ounce increased to $1,271 in 2023 compared with $1,021 in 2022
primarily due to higher heap leach costs and the strengthening of the Mexican peso relative to the US dollar. Total
cash costs per ounce on a by-product basis increased to $1,241 in 2023 compared with $1,056 in 2022 due to the
factors described in production costs per ounce. Total cash costs per ounce on a co-product basis increased to
$1,261 in 2023 compared with $1,078 in 2022 primarily due to the factors described above for the increase in
production costs per ounce.
16
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Exploration and Corporate Development Expense
Exploration and corporate development expense decreased by 20.4% to $215.8 million in 2023 from $271.1 million in
2022. Exploration and corporate development expense was $152.5 million in 2021.
A summary of the Company’s significant 2023 exploration and corporate development activities is set out below:
• Exploration expenses at various mine sites decreased by 10.5% to $56.5 million in 2023 compared with
$63.1 million in 2022 primarily due to lower expensed exploration at the Detour Lake and Macassa mines and at
the underground portion of Hope Bay, partially offset by higher expensed exploration expenses at the Canadian
Malartic complex following the Yamana Transaction.
• Exploration expenses in Canada decreased by 25.9% to $79.5 million in 2023 compared with $107.3 million in
2022 primarily due to lower expensed exploration drilling at Amalgamated Kirkland and Upper Beaver, partially
offset by higher expenses at Hope Bay.
• Exploration expenses in Latin America decreased by 43.7% to $13.6 million in 2023 compared with $24.1 million
in 2022 primarily due to reduced exploration at Santa Gertudis and other regional targets in Mexico.
• Exploration expenses in the United States decreased by 28.1% to $4.2 million in 2023 compared with $5.8 million
in 2022 primarily due to reduced exploration at the Gryphon Gold project.
• Exploration expenses in Europe decreased by 49.8% to $5.0 million in 2023 compared with $9.9 million in 2022
primarily due to reduced regional exploration expenses around the proximity of the Kittila mine and surface
exploration targets at the Kittila mine.
• Exploration expenses in Australia decreased by 4.2% to $4.0 million in 2023 compared with $4.2 million in 2022.
• Corporate development and project evaluation expenses decreased by 6.4% to $53.0 million in 2023 compared
with $56.6 million in 2022 primarily due to reduced project evaluation expenses at projects in Canada.
The table below sets out exploration expense by region and total corporate development expense:
2023
2022
2021
(thousands of United States dollars)
Minesites
$ 56,475
$ 63,066
$ 34,188
Canada
79,509
107,305
49,819
Latin America
13,585
24,147
25,600
United States
4,177
5,807
7,518
Europe
4,986
9,939
7,801
Australia
4,033
4,212
—
Corporate development and project evaluation expenses
53,016
56,641
27,588
Total exploration and corporate development expense
$215,781
$271,117
$152,514
Amortization of Property, Plant and Mine Development
Amortization of property, plant and mine development expense increased to $1,491.8 million in 2023 compared with
$1,094.7 million in 2022 and $738.1 million in 2021. The increase in amortization of property, plant and mine
development between 2023 and 2022 was primarily due to the increased amortization at the Canadian Malartic complex
following the Yamana transaction and the increased amortization at the Meadowbank complex and the Macassa, Meliadine
and Fosterville mines.
General and Administrative Expense
General and administrative expenses decreased to $208.5 million in 2023 compared with $220.9 million in 2022 primarily
due to non-recurring costs attributable to the Merger. General and administrative expenses were $142.0 million in 2021.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
17
Finance Costs
Finance costs increased to $130.1 million in 2023 compared with $82.9 million in 2022 and $92.0 million in 2021. The
increase between 2023 and 2022 was primarily due to interest incurred on the $600.0 million Term Loan Facility, higher
levels of accretion on the Company’s reclamation provisions and additional interest incurred on drawdowns of the
Company’s revolving credit facility. The drawdowns were incurred to finance the Yamana Transaction. The increase caused
by these factors was partially offset by a decrease in interest expense on the Company’s guaranteed senior unsecured
notes (the “Notes”) as $100.0 million of the 2016 Series A Notes was repaid in June 2023.
The decrease between 2022 and 2021 was primarily due to decreased interest expense on the Notes as $125.0 million of
the 2010 Series C Notes were repaid in April 2022 and $100.0 million of the 2012 Series A Notes were repaid in July 2022.
The aggregate outstanding principal of the Notes was $1,250.0 million at December 31, 2023 and $1,350.0 million at
December 31, 2022.
The table below sets out the components of finance costs:
2023
2022
2021
(thousands of United States dollars)
Interest on Notes
$ 57,192
$64,481
$72,795
Interest on Term Loan Facility
26,273
—
—
Interest on Old Credit Facility
10,928
536
1,549
Old Credit Facility fees
6,374
3,859
5,546
Amortization of credit and term loan facilities financing and note issuance costs
3,290
3,042
3,778
Accretion expense on reclamation provisions
32,906
15,951
6,554
Interest on lease obligations and other interest expense (income)
(3,699)
(1,290)
5,329
Interest capitalized to assets under construction
(3,177)
(3,644)
(3,509)
Total finance costs
$130,087
$82,935
$92,042
See Note 14 in the consolidated annual financial statements for details on the Company’s $1.2 billion unsecured revolving
bank credit facility, the Term Loan Facility and Notes referenced above.
Derivative Financial Instruments
Gain on derivative financial instruments was $68.4 million in 2023 compared to a loss on derivative financial instruments
of $90.7 million in 2022 and a loss of $11.1 million in 2021. The change between 2023 and 2022 was primarily due to
unrealized gains on foreign exchange and fuel hedges of $112.9 million in 2023 compared to an unrealized loss on
foreign exchange and fuel hedges of $59.6 million in 2022, partially offset by a $11.3 million increase in realized losses on
foreign exchange and fuel hedges between periods.
Impairment Loss
As at December 31, 2023, the Company completed its goodwill impairment testing and its review of indicators of potential
impairment of the Company’s cash generating units (“CGUs”). The Company identified indicators of potential impairment
for the Company’s Pinos Altos mine. As a result of the identification of these indicators, the Company estimated the
recoverable amount of this CGU and the recoverable amount was calculated to be less than the carrying amount. The
Company recognized an impairment loss of $112.0 million ($73.4 million net of tax) against property, plant and mine
development. The Company completed its goodwill impairment testing and the recoverable amount for the Macassa CGU
was calculated to be less than the carrying amount. An impairment loss of $675.0 million ($594.0 million net of tax) was
recognized against the Macassa CGU, of which $420.9 million was recognized against goodwill and $254.1 million
($173.1 million net of tax) was recognized against property, plant and mine development costs.
As at December 31, 2022, the Company completed its goodwill impairment test and its review of indicators of potential
impairment of the Company’s CGUs. The Company identified indicators of potential impairment for the Company’s La
India mine. As a result of the identification of these indicators, the Company estimated the recoverable amount of this
18
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
CGU and concluded that the carrying amounts exceeded its recoverable amount. The Company recorded an impairment
of $55.0 million ($52.7 million net of tax) at the La India mine.
As at December 31, 2021, the Company completed its review of indicators of potential impairment and no indicators of
impairment were identified.
Management’s estimates of recoverable amounts are subject to risk and uncertainties. Therefore, it is reasonably possible
that changes could occur which may affect the recoverability of the Company’s long-lived assets and goodwill. This may
have a material effect on the Company’s future financial results.
See Note 24 in the annual consolidated financial statements for further details on impairment losses.
Foreign Currency Translation (Gain) Loss
The Company’s operating results and cash flow are significantly affected by changes in the exchange rate between the US
dollar and each of the Canadian dollar, Australian dollar, Euro and Mexican peso as all of the Company’s revenues are
earned in US dollars while a significant portion of its operating and capital costs are incurred in such other currencies.
During the period from January 1, 2023 through December 31, 2023, the daily US dollar closing exchange rate per
US$1.00 fluctuated between C$1.31 and C$1.39 as reported by the Bank of Canada, A$1.40 and A$1.59 as reported by
the Reserve Bank of Australia, €0.89 and €0.96 as reported by the European Central Bank and 16.69 and 19.49 Mexican
pesos as reported by the Central Bank of Mexico.
A foreign currency translation gain of $0.3 million was recorded in 2023 compared with a $16.1 million gain in 2022 and
a $5.7 million loss in 2021. On average in 2023, the US dollar strengthened relative to both the Canadian dollar and the
Australian dollar but weakened relative to both the Euro and the Mexican peso. As at December 31, 2023, the US dollar
weakened relative to the Canadian dollar, Australian dollar, Euro and the Mexican peso as compared to December 31,
2022. The net foreign currency translation gain in 2023 was primarily due to the translation impact of the Company’s net
monetary liabilities denominated in foreign currencies between periods.
Other Expenses
Other expenses decreased to $66.3 million in the year ended December 31, 2023 compared with $141.3 million in the
year ended December 31, 2022, primarily due to non-recurring severance and acquisition costs associated with the
Merger in 2022. Other expenses amounted to $22.3 million in the year ended December 31, 2021, which included a gain
on the sale of certain non-strategic exploration properties.
Income and Mining Taxes Expense
In 2023, the Company recorded income and mining taxes expense of $417.8 million on income before income and
mining taxes of $2,359.1 million at an effective tax rate of 17.7%. In 2022, the Company recorded income and mining
taxes expense of $445.2 million on income before income and mining taxes of $1,115.4 million at an effective tax rate of
39.9%. The Company’s 2023 effective tax rate is lower than the applicable statutory tax rate of 26.0% due to the non-
taxable accounting gain on the acquisition of Yamana’s interests in its Canadian assets. The Company’s 2022 effective tax
rate is higher than the applicable statutory tax rate of 26.0% due to the impact of mining taxes. In 2021, the Company
recorded income and mining taxes expense of $370.8 million on income before income and mining taxes of $932.7 million
at an effective tax rate of 39.8%.
Balance Sheet Review
(thousands of United States dollars)
As at December 31, 2023
As at December 31, 2022
As at December 31, 2021
Current assets
$ 2,191,152
$ 2,180,059
$ 1,302,388
Non-current assets
26,493,797
21,314,749
8,913,702
Total assets
$28,684,949
$23,494,808
$10,216,090
Current liabilities
$ 1,048,026
$
946,422
$
761,813
Non-current liabilities
8,214,008
6,307,041
3,454,506
Total liabilities
$ 9,262,034
$ 7,253,463
$ 4,216,319
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
19
Total assets at December 31, 2023 of $28.7 billion increased by 22.1%, or $5.2 billion compared with total assets of
$23.5 billion at December 31, 2022. The Company’s total assets are primarily comprised of non-current assets such as
property, plant and mine development and goodwill.
Total liabilities at December 31, 2023 of $9.3 billion increased by 27.7%, or $2.0 billion compared with total liabilities of
$7.3 billion at December 31, 2022. The Company’s total liabilities are primarily comprised of non-current liabilities such
as deferred income and mining tax liabilities, long-term debt and reclamation provisions.
Both total assets and total liabilities at December 31, 2023 increased compared with total assets and total liabilities at
December 31, 2022 primarily due to the assets acquired and liabilities assumed as part of the Yamana Transaction.
Total assets and total liabilities at December 31, 2022 increased compared with total assets and total liabilities at
December 31, 2021 primarily due to the assets acquired and liabilities assumed as part of the Merger in 2022.
While the Company occasionally enters into contracts to limit the risk associated with decreased by-product metal prices,
increased foreign currency costs (including capital expenditures) and input costs, the contracts act as economic hedges
of underlying exposure and are not held for speculative purposes. Agnico Eagle does not use complex derivative contracts
to hedge exposure. During the year ended December 31, 2023, the Company increased its currency and diesel hedge
positions to mitigate the effect of price inflation on its key input costs. As at December 31, 2023, the Company had
outstanding currency derivative contracts in respect of $3,324.7 million of 2024 and 2025 anticipated expenditures
(December 31, 2022 – $2,907.9 million) and diesel fuel derivative contracts in respect of 15.0 million gallons of heating
oil (December 31, 2022 – 19.0 million).
Liquidity and Capital Resources
As at December 31, 2023, the Company’s cash and cash equivalents totaled $338.6 million compared with $658.6 million
as at December 31, 2022. The Company’s policy is to invest excess cash in what the Company believes to be highly liquid
investments of high credit quality to reduce risks associated with these investments. Such investments with remaining
maturities of greater than three months and less than one year at the time of purchase are classified as short-term
investments. Investments with remaining maturities of less than three months at the time of purchase are classified as
cash equivalents. The Company’s decisions regarding the length of maturities it holds are based on cash flow requirements,
rates of return and various other factors.
Working capital (current assets less current liabilities) decreased to $1,143.1 million as at December 31, 2023, compared
with $1,233.6 million as at December 31, 2022, primarily due a $320.0 million decrease in cash and cash equivalents, a
$77.0 million increase in current taxes payable and a $77.9 million increase in accounts payable and accrued liabilities,
partially offset by an increase of $209.9 million in inventories, an increase of $112.9 in the fair value of derivative financial
instrument assets (net of derivative financial instrument liabilities) and a $87.0 million increase in other current assets.
Subject to various risks and uncertainties, including those set in this MD&A and in the Company’s AIF, the Company
believes it will generate sufficient cash flow from operations and has adequate cash and debt facilities available to finance
its current operations, working capital requirements, contractual obligations, debt maturities, planned capital expenditure
and exploration programs. While the Company believes its capital resources will be sufficient to satisfy all its mandatory
and discretionary commitments, the Company may choose to decrease certain of its discretionary expenditure
commitments, which include certain capital expenditures and exploration and corporate development expenses, should
unexpected financial circumstances arise in the future. See “Risk Profile” in this MD&A for further details.
Operating Activities
Cash provided by operating activities increased by $504.9 million to $2,601.6 million in 2023 compared with
$2,096.6 million in 2022. The increase in cash provided by operating activities was primarily due to a 6.8% increase in the
sales volume of gold and a decrease in exploration and corporate development and other expenses, partially offset by an
increase in production costs and less favourable working capital movements between periods. Cash provided by operating
activities of $2,096.6 million in 2022 was $751.3 million higher compared with $1,345.3 million in 2021 primarily due to
a 51.3% increase in the sales volume of gold and more favourable working capital movements. This was partially offset by
an increase in production costs and exploration and corporate development expenses between periods.
Investing Activities
Cash used in investing activities increased to $2,760.8 million in 2023 compared to $710.5 million in 2022. The increase
in cash used in investing activities between periods was primarily due to $1,000.6 million in net cash consideration paid
by the Company in the Yamana Transaction, $838.7 million in non-recurring cash acquired in 2022 due to the Merger, a
20
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
$115.9 million increase in capital expenditures and a $57.3 million increase in purchases of equity securities and other
investments discussed below. Cash used in investing activities was $1,264.0 million in 2021, which included
$340.9 million in non-recurring cash payments related to the acquisition of TMAC and the Hope Bay royalty and
$897.0 million in capital expenditures.
In 2023, the Company invested cash of $1,654.1 million in projects and sustaining capital expenditures compared with
$1,538.2 million in 2022. Capital expenditures in 2023 included $422.7 million at the Detour Lake mine, $263.2 million
at the Canadian Malartic complex, $191.0 million at the Meliadine mine, $146.3 million at the Macassa mine,
$128.1 million at the Meadowbank complex, $122.9 million at the LaRonde mine, $87.4 million at the Fosterville mine,
$87.0 million at the Goldex mine, $82.3 million at the Kittila mine, $36.5 million at the Pinos Altos mine, $38.9 million at
the LaRonde Zone 5 mine, $0.3 million at the La India mine, and $47.6 million at the Company’s other projects. The
$115.9 million increase in capital expenditures between 2023 and 2022 was primarily due to additional capital
expenditures from the Canadian Malartic complex following the Yamana Transaction and at the Meliadine mine.
In 2023, the Company purchased $104.7 million of equity securities and other investments compared with $47.4 million
in 2022 and $39.9 million in 2021. The Company’s investments in equity securities consist primarily of investments in
common shares of entities in the mining industry.
On April 27, 2021, Orla Mining Ltd. (“Orla”) completed a drawdown of $16.0 million under a loan agreement dated
December 18, 2019 between, among others, Orla and the Company. The loan agreement related to a five-year credit
facility to provide Orla financing for an aggregate principal amount of $125.0 million, of which the Company’s aggregate
financing commitment is $40.0 million. On April 29, 2022, Orla repaid the loan in full. As at December 31, 2023, the
Company owned 27,602,589 Orla common shares and 10,400,000 warrants to purchase Orla common shares,
representing approximately 8.78% of the issued and outstanding common shares on a non-diluted basis and 11.70% of
the issued and outstanding common shares on a partially-diluted basis.
Financing Activities
Cash used in financing activities decreased to $164.0 million in 2023 compared to $914.9 million in 2022 primarily due
to $599.0 million in net proceeds received from the Term Loan Facility that were used to partially repay the revolving credit
facility following the Yamana Transaction, a reduction of $125.0 million in senior note repayments and a $63.0 million
decrease in repurchases of common shares between periods, partially offset by a $30.3 million increase in dividends
paid. Cash used in financing activities was $297.2 million in 2021.
The Company issued common shares for net proceeds of $70.3 million in 2023 compared to $62.1 million in 2022,
attributable to employee stock option plan exercises, issuances under the incentive share purchase plan and the dividend
reinvestment plan. Net proceeds from the issuance of common shares were $40.1 million in 2021.
On April 28, 2022, the Company received approval from the TSX to establish an NCIB. On May 2, 2023, the Company
received approval from the TSX to renew its NCIB, pursuant to which the Company may purchase up to $500.0 million of
its common shares subject to a maximum of 5% of its issued and outstanding common shares. Under the NCIB, the
Company may purchase such common shares for cancellation, on the open market at its discretion, during the period
starting on May 4, 2023 and ending on May 3, 2024.
During the year ended December 31, 2023, the Company repurchased 100,000 common shares for $4.8 million at an
average price of $47.74 under the NCIB. During the year ended December 31, 2022, the Company repurchased
1,569,620 common shares for $69.9 million at an average price of $44.53 under the NCIB.
In 2023, the Company declared dividends of $1.60 per share and paid cash dividends of $638.6 million, compared with
dividends declared of $1.60 per share and cash dividends paid of $608.3 million in 2022. In 2021, the Company declared
dividends of $1.40 per share and paid cash dividends of $275.2 million. Agnico Eagle has declared a cash dividend every
year since 1983. Although the Company expects to continue paying dividends, future dividends will be at the discretion of
the Board and will be subject to factors such as income, financial condition and capital requirements.
On April 20, 2023, the Company entered into a credit agreement with a group of financial institutions that provides a
$600.0 million Term Loan Facility. The Company drew the full amount of the Term Loan Facility on April 28, 2023. The
Term Loan Facility matures and all indebtedness thereunder is due and payable on April 21, 2025. On February 12, 2024,
the Term Loan Facility was amended to align with the Company’s New Credit Facility.
On December 22, 2021, the Company amended its Old Credit Facility to improve pricing, increase the uncommitted
accordion feature from $300.0 million to $600.0 million and extend the maturity date from June 22, 2023 to December 22,
2026. On June 30, 2023, the Company further amended the Old Credit Facility to update the benchmark rate from LIBOR
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
21
to SOFR and the Canadian Overnight Repo Rate Average (“CORRA”). In 2023, the Company drew down and repaid an
aggregation of $1.3 billion from the Old Credit Facility. The repayment was partially funded by a $600.0 million drawdown
on the Term Loan Facility. In 2022, the Company drew down and repaid $100.0 million from the Old Credit Facility
primarily to facilitate operating requirements. As at December 31, 2023, the Company’s outstanding balance under the
Old Credit Facility was nil. Credit Facility availability is reduced by outstanding letters of credit which were $1.1 million as
of December 31, 2023, resulting in $1,198.9 million available for future drawdown.
On February 12, 2024, the Company replaced its $1.2 billion unsecured revolving credit facility with the New Credit
Facility. The New Credit Facility is available in US dollars through SOFR and base rate advances, or in Canadian dollars
through CORRA and prime rate advances, priced at the applicable rate plus a margin that ranges from 0.00% to 2.00%.
The New Credit Facility also provides for the issuance of letters of credit, priced at the applicable rate plus a margin that
varies from 0.60% to 2.00%. The lenders under the New Credit Facility are each paid a standby fee at a rate that ranges
from 0.09% to 0.25% of the undrawn portion of the New Credit Facility. In each case, the applicable margin or standby
fees vary depending on the Company’s credit rating. The Company’s subsidiaries are not required to guarantee the
payment and performance of its obligations under the New Credit Facility, however the Company must provide guarantees
from certain of its subsidiaries if any existing indebtedness of the Company benefits from guarantees and the Company no
longer maintains an investment grade credit rating, or if the Company incurs new indebtedness for borrowed money and
provides guarantees of such new indebtedness from any of its subsidiaries. The Credit Facility contains customary
covenants limiting certain actions of the Company and its material subsidiaries, and customary events of default for a
borrower with the Company’s credit profile. The Company is also required to maintain a total net debt to capitalization ratio
below a specified maximum value.
Effective September 20, 2022, the Company amended its credit agreement with a financial institution relating to an
uncommitted letter of credit facility (as amended, the “First LC Facility”) to increase the amount available to
C$400.0 million. The First LC Facility may be used to support the reclamation obligations or non-financial or performance
obligations of the Company or its subsidiaries. As at December 31, 2023, the aggregate undrawn face amount of letters of
credit under the First LC Facility is $300.7 million.
Effective September 16, 2021, the Company amended its uncommitted standby letter of credit facility (as amended, the
“Second LC Facility”) to increase the amount available to C$200.0 million. Payment and performance of the Company’s
obligations under the Second LC Facility are supported by an account performance security guarantee issued by Export
Development Canada in favour of the lender. The Second LC Facility may be used by the Company to support the
reclamation obligations of the Company, its subsidiaries or any entity in which the Company has a direct or indirect interest
or the performance obligations (other than with respect to indebtedness for borrowed money) of the Company, its
subsidiaries or any entity in which the Company has a direct or indirect interest that are not directly related to reclamation
obligations. As at December 31, 2023, the aggregate undrawn face amount of letters of credit under the Second LC
Facility is nil.
Effective May 25, 2023, the Company amended its uncommitted standby letter of credit facility with a financial institution
(the “Third LC Facility”) to increase the amount available to C$200.0 million. Letters of credit issued under the Third LC
Facility may be used to support the reclamation obligations or non-financial or performance obligations of the Company or
its subsidiaries; however the subsidiary guarantees were released in connection with the entry into the New Credit Facility.
As at December 31, 2023, the aggregate undrawn face amount of letters of credit under the Third LC Facility was
$70.1 million.
In October 2021, the Company entered into a $75.0 million uncommitted standby letter of credit facility (the “Fourth LC
Facility”) with a financial institution. Letters of credit issued under the Fourth LC Facility may be used to support the
reclamation obligations or non-financial or performance obligations of the Company or its subsidiaries. As at December 31,
2023, the aggregate undrawn face amount of letters of credit under the Fourth LC Facility was $70.7 million.
In January 2022, the Company entered into a C$100.0 million uncommitted standby letter of credit facility (the “Fifth LC
Facility” and, together with the First LC Facility, the Second LC Facility, the Third LC Facility and the Fourth LC Facility, the
“LC Facilities”) with a financial institution. Upon the acquisition of Kirkland in February 2022, the Company acquired a
standby letter of credit facility with the same financial institution providing for an additional C$120.0 million uncommitted
letter of credit facility for the Kirkland subsidiary. Effective September 2022, an amended and restated standby letter of
facility combined these facilities and the amount available under the amended and restated facility was increased to
C$320.0 million. Letters of credit issued under the Fifth LC Facility may be used to support the reclamation obligations or
non-financial or performance obligations of the Company or its subsidiaries. As at December 31, 2023, the aggregate
undrawn face amount of letters of credit under the Fifth LC Facility was $216.2 million.
22
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
The obligations of the Company under each of the LC Facilities other than then Second LC Facility were guaranteed by
certain of its subsidiaries. In connection with the Company’s entry into the New Credit Facility, these subsidiary guarantees
were released.
In February 2022, upon the acquisition of Kirkland, the Company acquired a standby letter of guarantee facility (the
“Guarantee Facility”) with a financial institution providing for a $25.0 million uncommitted letter of guarantee facility.
Guarantees issued under the Guarantee Facility may be used to support the reclamation obligations or non-financial or
performance obligations of certain subsidiaries of the Company. The obligations of the Company under this Guarantee
Facility were guaranteed by certain of its subsidiaries; however the subsidiary guarantees were released in connection
with the entry into the New Credit Facility. As at December 31, 2023, the aggregate undrawn face amount of guarantees
under this facility was $12.8 million.
As at December 31, 2023, the Company has indemnity agreements with three companies for the issuance of surety
bonds of which $315.7 million of such surety bonds have been issued under these agreements.
The Company was in compliance with all covenants contained in the Old Credit Facility, Term Loan Facility, the LC
Facilities, the Guarantee Facility and the Notes as at December 31, 2023.
Off-Balance Sheet Arrangements
The Company’s off-balance sheet arrangements as at December 31, 2023 include outstanding letters of credit for
environmental and site restoration costs, custom credits, government grants and other general corporate purposes of
$991.7 million under the Old Credit Facility and the LC Facilities (see Note 27 to the consolidated annual financial
statements). If the Company were to terminate these off-balance sheet arrangements, the Company’s liquidity position (as
outlined in the table below) is sufficient to satisfy any related penalties or obligations.
Contractual Obligations
Agnico Eagle’s contractual obligations as at December 31, 2023 are set out below:
Total
2024
2025-2026
2027-2028
Thereafter
(millions of United States dollars)
Reclamation provisions(i)
$1,068.6
$ 25.6
$ 116.8
$ 92.7
$ 833.5
Contractual commitments(ii)
216.0
159.1
39.1
10.8
7.0
Pension obligations(iii)
105.5
4.5
9.4
8.3
83.3
Lease obligations
168.3
47.6
40.3
24.9
55.5
Long-term debt – principal(iv)
1,850.0
100.0
890.0
195.0
665.0
Long-term debt – interest(iv)
281.0
54.9
92.6
63.1
70.4
Total(v)
$3,689.4
$391.7
$1,188.2
$394.8
$1,714.7
Notes:
(i)
Mining operations are subject to environmental regulations that require companies to reclaim and remediate land disturbed by mining operations. The Company has submitted
closure plans to the appropriate governmental agencies which estimate the nature, extent and costs of reclamation for each of its mining properties. Expected reclamation cash
flows are presented above on an undiscounted basis. Reclamation provisions recorded in the Company’s consolidated financial statements are measured at the expected value of
future cash flows discounted to their present value using a risk-free interest rate.
(ii) Purchase commitments include contractual commitments for the acquisition of property, plant and mine development. In addition to the above, the Company has $290.0 million
of committed subscription proceeds related to the San Nicolas project.
(iii) Agnico Eagle provides defined benefit plans for certain current and former senior officers and certain employees. The benefits are generally based on the employee’s years of
service, age and level of compensation. The data included in this table have been actuarially determined.
(iv) The Company has assumed that repayment of its long-term debt obligations will occur on each instrument’s respective maturity date.
(v)
The Company’s future operating cash flows are expected to be sufficient to satisfy its contractual obligations.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
23
2024 Liquidity and Capital Resources Analysis
The Company believes that it has sufficient capital resources to satisfy its 2024 mandatory expenditure commitments
(including the contractual obligations set out above) and discretionary expenditure commitments. The following table sets
out expected capital requirements and resources for 2024:
Amount
(millions of United States dollars)
2024 Mandatory Commitments:
Contractual obligations, including capital expenditures (see table above)
$ 391.7
Accounts payable and accrued liabilities (as at December 31, 2023)
750.4
Total 2024 mandatory expenditure commitments
$1,142.1
2024 Discretionary Commitments:
Expected capital expenditures
$1,761.6
Expected exploration and corporate development expenses
227.0
Total 2024 discretionary expenditure commitments
1,988.6
Total 2024 mandatory and discretionary expenditure commitments
$3,130.7
As of December 31, 2023, the Company believes it had adequate capital resources available to satisfy its commitments,
which include cash, cash equivalents and short-term investments of $348.8 million, working capital (excluding cash,
cash equivalents and short-term investments) of $794.3 million and $1,198.9 billion of available credit under its Old
Credit Facility. On February 12, 2024, the Company replaced the Old Credit Facility with the New Credit Facility (See
“Liquidity and Capital Resources – Financing Activities”). In addition, the Company anticipates funding its commitments
through cash provided by operating activities.
While the Company believes its capital resources will be sufficient to satisfy all 2024 commitments (mandatory and
discretionary), the Company may choose to decrease certain of its discretionary expenditure commitments, which include
certain capital expenditures and exploration and corporate development expenses, should unexpected financial
circumstances arise in the future. The Company believes that it will continue to have sufficient capital resources available
to satisfy its planned development and growth activities.
On April 7, 2023, Moody’s upgraded its credit rating outlook for the Company to “positive” from “stable”, while affirming
the credit rating at Baa2. On June 20, 2023, Fitch Ratings affirmed its credit rating for Agnico Eagle at BBB+ with a Stable
Outlook. These investment grade credit ratings reflect the Company’s strong business and credit profile, while maintaining
low leverage and conservative financial policies and recognizing the benefits of the Company’s size and scale and
operations in favorable mining jurisdictions.
Quarterly Results Review
For the Company’s detailed 2023 and 2022 quarterly financial and operating results see “Summarized Quarterly Data” in
this MD&A.
Fourth Quarter 2023 vs. Fourth Quarter 2022
Revenues from mining operations, net of selling costs, increased by 26.9% to $1,756.6 million in the fourth quarter of
2023 compared with $1,384.7 million in the fourth quarter of 2022, primarily due to a 10.9% increase in gold sales
volume and 14.7% increase in average realized price of gold between periods. The higher gold sales volume was driven
by the additional contribution of the Canadian Malartic complex at 100% ownership level following the Yamana Transaction
and higher sales volume at Meadowbank complex and the Macassa mine, partially offset by lower gold sales volume at the
Fosterville mine and the LaRonde complex.
Production costs increased by 16.6% to $777.5 million in the fourth quarter of 2023 compared with production costs of
$666.9 million in the fourth quarter of 2022, primarily due to the additional contribution of the Canadian Malartic complex
24
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
at 100% ownership following the Yamana Transaction and the contribution from the Meadowbank complex and the
Meliadine and Macassa mines, partially offset by the weakening of the Canadian dollar and Australian dollar relative to the
US dollar between periods.
Exploration and corporate development expenses decreased by 35.1% to $46.0 million in the fourth quarter of 2023
compared with $70.9 million in the fourth quarter of 2022, primarily due to lower expenses at the Hope Bay and
Amalgamated Kirkland properties and the Meadowbank complex between the two periods.
Amortization of property, plant and mine development increased by 37.0% to $391.6 million in the fourth quarter of 2023
compared with $285.7 million in the fourth quarter of 2022 primarily due to the additional contribution of amortization
from the Canadian Malartic complex at 100% ownership level following the Yamana transaction and the contributions
from the Meadowbank and LaRonde complexes and the Macassa, Meliadine and Fosterville mines.
Net loss of $381.0 million was recorded in the fourth quarter of 2023 after income and mining taxes expense of
$56.9 million compared with net income of $194.1 million in the fourth quarter of 2022 after income and mining taxes
expense of $68.8 million. The net loss in the fourth quarter of 2023 is primarily due to impairment loss of $787.0 million
($667.4 million net of tax) in the period compared to impairment loss of $55.0 million ($52.0 million net of tax) in the
fourth quarter of 2022.
Cash provided by operating activities increased by 91.3% to $727.9 million in the fourth quarter of 2023 compared with
$380.5 million in the fourth quarter of 2022. The increase in cash provided by operating activities is primarily due to the
additional contribution of gold sales from the Canadian Malartic complex at 100% ownership level following the Yamana
Transaction.
Fourth Quarter 2023 vs. Third Quarter 2023
Revenues from mining operations, net of selling costs, increased by 7.0% to $1,756.6 million in the fourth quarter of 2023
compared with $1,642.4 million in the third quarter of 2023, primarily due to a 3.7% increase in the sales volume of gold
and a 2.8% higher average realized price of gold between periods. Higher gold sales volume was driven by higher sales
volumes at the Detour Lake and Macassa mines and the Meadowbank complex, partially offset by lower sales volumes at
the Fosterville mine and the LaRonde complex.
Production costs increased by 2.4% to $777.5 million in the fourth quarter of 2023 compared with production costs of
$759.4 million in the third quarter of 2023, primarily due to higher production costs at the Canadian Malartic and
Meadowbank complexes and the Detour Lake and Macassa mines, partially offset by lower production costs at the
LaRonde complex and the weakening of the Canadian dollar and Australian dollar relative to the US dollar between
periods.
Exploration and corporate development expenses decreased by 25.3% to $46.0 million in the fourth quarter of 2023
compared with $61.6 million in the third quarter of 2023. The decrease in exploration and corporate development
expenses between periods is primarily due to lower expenditure at the Canadian Malartic complex and the Hope Bay
project.
Amortization of property, plant and mine development decreased 5.6% to $391.6 million in the fourth quarter of 2023
compared with amortization of property, plant and mine development of $415.0 million in the third quarter of 2023,
primarily due to the contribution of lower amortization at the Detour Lake mine, partially offset by higher amortization
expenses at the Canadian Malartic and LaRonde complexes between the periods.
Net loss of $381.0 million was recorded in the fourth quarter of 2023 after income and mining taxes expense of
$56.9 million compared with net income of $178.6 million in the third quarter of 2023 after income and mining taxes
expense of $92.7 million. The net loss in the fourth quarter of 2023 is primarily due to impairment loss of $787.0 million
($667.4 million net of tax).
Cash provided by operating activities increased by 45.0% to $727.9 million in the fourth quarter of 2023 compared with
$502.1 million in the third quarter of 2023. The increase in cash provided by operating activities is primarily due to a
$114.2 million increase in revenues from mining operations and more favourable working capital movements between
periods.
Outlook
The following section contains “forward-looking statements” and “forward-looking information” within the meaning of
applicable securities laws. See “Note to Investors Concerning Forward-Looking Information” in this MD&A for a discussion
of assumptions and risks relating to such statements.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
25
2024 and 2025 Outlook Update
Payable gold production is forecasted to be between 3.35 to 3.55 million ounces in 2024, between 3.40 and 3.60 million
ounces in 2025 and between 3.40 and 3.60 million ounces in 2026.
2023 Results Comparison to 2023 Outlook
Gold Production and Costs
Payable gold production for the full year 2023 was 3,439,654 ounces, which was at the top end of the previous guidance
range of 3,240,000 and 3,440,000 ounces. Total cash costs per ounce on a by-product basis for the full year 2023 was
$865, which was at the mid-point of the previous guidance range of approximately $840 to $890.
Capital Expenditures and All-In Sustaining Costs per Ounce
Total capital expenditures (including sustaining capital) for the full year 2023 were $1,600.9 million, compared to the
previous guidance of approximately $1,539.0 million, which included capitalized exploration. The increase in capital
expenditures compared to the previous guidance is primarily related to additional spending at the Detour Lake mine and
the LaRonde, Meadowbank and Canadian Malartic complexes, which was partially offset by a decrease in capital
expenditures at the Macassa and Kittila mines.
All-in sustaining costs per ounce on a by-product basis for the full year 2023 were $1,179, which was within the previous
guidance range of approximately $1,140 to $1,190.
Exploration and Corporate Development Expense
Previous guidance for exploration and corporate development expense was $205.0 million. Based on positive results at
Detour Lake, Meliadine and Kittila mines and the Hope Bay project, a supplemental exploration budget of $32.0 million
was approved by the Board. Exploration and corporate development expense for the full year 2023 was $215.8 million,
lower than the updated previous guidance of approximately $237.5 million.
Amortization of Property, Plant and Mine Development
Amortization of property, plant and mine development expense for the full year 2023 was $1,491.8 million in 2023, which
was higher than the previous guidance range of approximately $1,360.0 million to $1,410.0 million primarily due to
adjustments to the purchase price allocation on on the assets acquired on the Yamana Transaction.
General and Administrative Expense
General and administrative expenses for the full year 2023 were $208.5 million, which was higher than the range in
previous guidance of approximately $130.0 to $140.0 million, primarily due to non-cash re-valuation of stock-based
compensation.
Operations Outlook
LaRonde Complex
In 2023, the LaRonde complex produced 306,648 ounces of gold at total cash costs per ounce of $911. In 2024, the
Company expects production at the LaRonde complex to be between 285,000 and 305,000 ounces at total cash costs per
ounce of approximately $931.
The LaRonde mine consists of the East and West mines. The mining at both mines extends below three kilometres from
surface where the in-situ stress contributes to influence the ground conditions surrounding the excavations. Seismicity is
a significant aspect of the operation and a team of rock mechanics experts has been engaged to attempt to manage the
seismic related challenges. The Company’s objective remains to address the seismic risk by continuously improving
mitigation measures to keep a safe work environment while maintaining reasonable production rates. These mitigation
measures include non-entry protocols, dynamic ground support and, increasingly, remote operation from surface.
The mining sequence is also designed to attempt to push the stress away from the orebody to reduce the seismic risk. For
the lower levels at the LaRonde mine, the transverse open stoping method, combined with a primary-secondary stope
mining sequence, is almost exclusively used to address the deep and high stress conditions. In the primary-secondary
stope mining sequence, primary stopes are mined out first and backfilled with pastefill, leaving secondary stopes as
temporary pillars. Secondary stopes are mined once the pastefill in the primary stopes has cured. Secondary stopes are
backfilled with waste rock or pastefill.
26
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
With the deepening of the mine, the Company has changed the mining sequence in the East mine attempting to reduce
the stress levels on the secondary stopes, reduce seismic risk and promote sustainability of the operation in the long run.
At the LaRonde mine, longitudinal and transverse longhole open stoping are the main mining methods used for the
extraction of the orebody. In 2023, the LaRonde mine transitioned to “pillarless” mining and an adjusted development
plan to manage seismicity within the mine, resulting in a lower mining rate when compared to the prior year. In addition,
the design of the ramp in the East mine has been adjusted to be further away from the geological structures. Pillarless
mining, combined with an adjusted development plan, results in a longer cycle time to extract stopes, resulting in a
reduced mining rate.
Production from the 11-3 Zone at LaRonde continued in the fourth quarter of 2023 at a mining rate of approximately
950 tpd. The 11-3 Zone is expected to continue to add additional flexibility to the LaRonde mine production plan.
In 2024, the Company plans to evaluate the potential to bring new sources of ore into production, including the LZ5 deep,
Ellison and Fringe zones.
The LZ5 processing facility is expected to be in care and maintenance until the second half of 2024 as the company
completes an upgrade to the CIL tanks. The Company expects to restart the LZ5 mill in the second half of 2024 to process
ore from LZ5 mine and the AK deposit at Macassa. An overhaul of the facility’s leach tanks is planned for the downtime
period.
Canadian Malartic Complex
In 2023, the Canadian Malartic complex produced 603,955 ounces of gold at total cash costs per ounce of $824. In 2024,
the Company expects production at the Canadian Malartic complex to be between 615,000 and 645,000 ounces at total
cash costs per ounce of approximately $926.
Mining activities in the Canadian Malartic pit continued until the pit was mined out in the first half for 2023 as planned.
Upon depletion of the Canadian Malartic pit, preparation work for in-pit tailings disposal started, which is expected to be
completed in the second half of 2024. The Barnat pit remains operational and in 2024, production is expected to be
sourced from the Barnat pit and the Odyssey underground mine.
In the fourth quarter of 2023, the Odyssey project continued to advance on schedule. At Odyssey South, the design
mining rate of 3,500 tpd was reached in October 2023 and sustained through the fourth quarter of 2023.
Advancing the main ramp remains the development priority for the Odyssey project. Shaft sinking activities continued to
ramp-up through the fourth quarter of 2024 and the Company still expects to complete excavation of the shaft in 2027.
Surface construction progressed as planned and on budget in the fourth quarter of 2023 and approximately 65% of the
project surface construction was completed as at December 31, 2023. The service hoist is expected to be operational to
a temporary loading station at Level 102 (1,050 metres below surface) by 2025. The paste backfill plant operated above
design capacity of 4,000 tpd in the fourth quarter of 2023 and the conceptual engineering for the second phase of the
paste plant has been initiated. In the second phase, which is expected to be completed in 2027, the paste backfill plant
will be expanded to a capacity of approximately 20,000 tpd.
Goldex Mine
In 2023, Goldex produced 140,983 ounces of gold at cash costs per ounce of $820. In 2024, the Company expects to
produce between 125,000 and 135,000 ounces of gold at the Goldex mine at cash costs per ounce of $871.
Goldex had solid operational performance throughout the year with record annual tonnes hoisted during 2023.
The Akasaba West project remains on schedule and budget with work on upgrading the Goldex mill that is used to process
the Akasaba West ore completed in the fourth quarter of 2023. The first ore from the project was processed in
November 2023 and achievement of commercial production is expected to occur in the first quarter of 2024.
Meliadine Mine
In 2023, the Meliadine mine produced 364,141 ounces of gold at total cash costs per ounce of $980. In 2024, the
Company expects production at the Meliadine mine to be between 360,000 and 380,000 ounces at total cash costs per
ounce of approximately $960.
The processing plant processed record tonnage in both fourth quarter and full year 2023. The Phase 2 mill expansion is
expected to be completed in mid-2024 and the processing rate ramp-up is expected to increase throughput to 6,000 tpd
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
27
by late 2024. In the fourth quarter of 2023, work on the Phase 2 mill expansion continued as mechanical piping and
electrical work was ongoing at the carbon in leach building, the power plant and secondary grinding building, which is now
fully enclosed.
The waterline installation is underway and expected to be completed in 2024, allowing for utilization in the summer of
2025.
The Meliadine Phase 2 expansion is progressing as planned and mill throughput is expected to increase to 6,000 tpd late
in 2024 and to 6,250 tpd in 2026.
The Company previously submitted an amendment to the existing permit for the Meliadine mine to include future
underground mining and associated saline water management infrastructure at the Pump, F-Zone and Discovery deposits
(the “Extension Project”) and would allow for the potential extension of the mine life at Meliadine by 11 years beyond the
current mine life of 2032.
In the fourth quarter of 2023, the Nunavut Impact Review Board (“NIRB”) provided a recommendation against the
Meliadine Extension Project which also included a wind farm project. In December 2023, Agnico Eagle decided to withdraw
the application for the amendment to the Meliadine mine’s permit for the Extension Project. Some of the components
included in the Extension Project proposal, which have already been approved under the existing permit (approved in
2014), still need to be added to the Type A Water licence to support the current Meliadine mining plan. In order to avoid
further delays that could be caused by the NIRB’s report and its regulatory framework, Agnico Eagle decided to submit
these components to the Nunavut Water Board (NWB) separately.
Meadowbank Complex
The Meadowbank complex achieved record annual production in 2023, increasing annual mill throughput by over
400,000 tonnes. In 2023, the Meadowbank complex produced 431,666 ounces of gold at total cash costs per ounce of
$1,176. In 2024, the Company expects production at the Meadowbank complex to be between 480,000 and 500,000
ounces at total cash costs per ounce of approximately $1,029.
Despite the delays related to an extended caribou migration and poor weather conditions, the open pit operation continued
to deliver solid performance during the fourth quarter of 2023. Production at Amaruq continued also to benefit from
positive reconciliation on tonnes and grade.
The Company has approved an extension to the Amaruq life of mine to 2028 (compared to 2026 previously), which
includes additional stopes from underground, re-sequencing the IVR open pit and additional ounces from positive grade
reconciliation.
Kittila Mine
In 2023, Kittila produced 234,402 ounces of gold at cash costs per ounce of $871. In 2024, the Company expects to
produce between 220,000 to 240,000 ounces of gold at the Kittla mine at cash costs per ounce of $954.
At the mine, the production hoist ramp up was completed in December 2023, and 100% of ore was hoisted through the
shaft.
In 2023, several environmental initiatives were implemented, including the nitrogen removal plant which improved Kittila’s
environmental performance.
Detour Lake Mine
In 2023, the Detour Lake mine produced 677,446 ounces of gold at cash costs per ounce of $735. In 2024, the Company
expects production at the Detour Lake mine to be between 675,000 and 705,000 ounces at total cash costs per ounce of
approximately $734.
A temporary transformer failure during the third quarter of 2023 affected the operations at the mill, however the issue was
resolved during the third quarter and operations were back to normal levels at the end of September. Mill performance
during the fourth quarter of 2023 averaged 72,000 tonnes per day.
As a result of progress on the mill optimization projects, the Company expects to reach and sustain throughput levels of
77,000 tonnes per day (equivalent to an annualized mill throughput of 28 Mtpa), late in the second half of 2024.
During the fourth quarter of 2023, the construction of the second cell, stage four of the tailings management area was
completed on schedule and on budget.
28
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
An upgrade of the 230kV main substation is planned to improve the power quality at the mine. In addition, the upgrade
will improve the site readiness for future power expansion for potential projects such as the trolley assist mine haulage
system. Approximately 70% of the engineering was completed and all lead items had been ordered as at December 31,
2023. The upgrades related to power quality are expected to be completed in 2024 and those related to improve site
readiness for future expansions in 2025.
Macassa Mine
In 2023, the Macassa mine produced 228,535 ounces of gold at cash costs per ounce of $731. In 2024, the Company
expects production at the Macassa mine to be between 265,000 and 285,000 ounces at total cash costs per ounce of
approximately $856.
The Amalgamated Kirkland deposit has been added to the mining profile starting 2024 with ore forecast to be trucked and
processed at the LZ5 mill circuit at the LaRonde complex starting in the second half of 2024.
The construction of the enclosure of the surface fans continued according to schedule in the fourth quarter of 2023. The
overall ventilation system upgrade is currently on track for completion in the first quarter of 2024, when both fans are
anticipated to reach full capacity.
The Macassa mine achieved a 171% replacement of its mining depletion in 2023 with an underground infill drilling
campaign that resulted in a net mineral reserves addition totaling 115,000 ounces of gold.
Fosterville Mine
In 2023, the Fosterville mine produced 277,694 ounces of gold at cash costs per ounce of $488. In 2024, the Company
expects production at the Fosterville mine to be between 200,000 and 220,000 ounces at total cash costs per ounce of
approximately $698.
Production profile has been negatively affected by grade reconciliation in the remaining portions of the high grade Swan
zone and the depletion of the zone is expected by late 2024. With the completion of the primary ventilation upgrade
planned for late 2024, the mining rate is forecast to increase by approximately 10% in 2025 and 2026, partially offsetting
the lower average grade.
The Company is currently upgrading the primary ventilation system to sustain the mining rate in the Lower Phoenix zones
in future years. In the fourth quarter of 2023, the Company completed the priority development related to the ventilation
upgrade on schedule and commenced the reaming of the first ventilation raise. The Company expects the project to be
completed by early 2025.
During the fourth quarter of 2023, the Company continued to give priority to the key underground development in Robbins
Hill district and the Lower Phoenix exploration drive.
In 2023, the Fosterville mine successfully replaced mining depletion through continued exploration success in the Robbins
Hill and Lower Phoenix areas and improved mining parameters.
Pinos Altos Mine
In 2023, the Pinos Altos mine produced 97,642 ounces of gold at total cash costs per ounce of $1,229. In 2024, the
Company expects production at the Pinos Altos mine to be between 100,000 and 105,000 ounces at total cash costs per
ounce of approximately $1,268.
The Company expects that production from the Cubiro satellite deposit will start on the second half of 2024.
La India Mine
In 2023, the La India mine produced 75,904 ounces of gold at total cash costs per ounce of $1,241. In 2024, the
Company expects production at the La India mine to be between 25,000 and 30,000 ounces at total cash costs per ounce
of approximately $1,365.
The El Realito pit was mined out in the fourth quarter of 2023 as planned and gold production in 2024 will come from the
residual leaching of the heap leach pads.
Production Summary
The Company has six cornerstone production assets (the LaRonde, Meadowbank and Canadian Malartic complexes and
the Detour Lake, Macassa and Meliadine mines) each with annual production rates in 2024 expected to be in excess of
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
29
250,000 ounces of gold. In 2023, payable gold production was 3,439,654 ounces. As the Company optimizes this
expanded production platform, it expects to continue to deliver on its vision and strategy. The Company expects that the
main contributors to achieving the targeted levels of payable gold production, mineral reserves and mineral resources in
the near term will include:
• continued mill and mine plan optimization;
• continued ramp-up of the Nunavut operations; and
• continued conversion of current mineral resources to mineral reserves.
Financial Outlook
The following section contains “forward-looking statements” and “forward-looking information” within the meaning of
applicable securities laws. See “Notes to Investor Concerning Forward-Looking Statements” in this MD&A for a discussion
of assumptions and risks relating to such statements.
Revenue from Mining Operations and Production Costs
In 2024, the Company expects to continue to generate solid cash flow with payable production of approximately 3,350,000
to 3,550,000 ounces of gold which is comparable with 3,439,654 ounces in 2023.
The table below sets out expected payable production in 2024 and actual payable production in 2023:
2024
Forecast
2023
Actual
Gold (ounces)
3,350,000 – 3,550,000
3,439,654
Silver (thousands of ounces)
2,684
2,408
Zinc (tonnes)
9,117
7,702
Copper (tonnes)
5,021
2,617
In 2024, the Company expects total cash costs per ounce on a by-product basis to be between $875 and $925. At the
LaRonde complex total cash costs per ounce on a by-product basis is expected to be approximately $931 compared with
$911 in 2023. In calculating expectations of total cash costs per ounce on a by-product basis for the LaRonde mine, net
silver, zinc and copper by-product revenue offsets production costs. Therefore, production and price assumptions for
by-product metals play an important role in the LaRonde complex’s expected total cash costs per ounce on a by-product
basis. The Pinos Altos mine also generates significant silver by-product revenue. An increase in by-product metal prices
above forecast levels would result in improved total cash costs per ounce on a by-product basis at these mines. Total cash
costs per ounce on a co-product basis are expected to be approximately $931 in 2024 at the LaRonde complex compared
with $1,088 in 2023.
As production costs at the LaRonde, Canadian Malartic and Meadowbank complexes as well as the Detour Lake, Macassa,
Meliadine and Goldex mines are incurred primarily in Canadian dollars, production costs at the Fosterville mine are
incurred primarily in Australian dollars, production costs at the Kittila mine are incurred primarily in Euros, and a portion
of the production costs at the Pinos Altos and La India mines are incurred in Mexican pesos, the US dollar/Canadian
dollar, US dollar/Australian dollar, US dollar/Euro, and US dollar/Mexican peso exchange rates also affect the Company’s
expectations for the total cash costs per ounce both on a by-product and co-product basis.
30
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
The table below sets out the metal price and exchange rate assumptions used in deriving the expected 2024 total cash
costs per ounce on a by-product basis (forecast production for each metal is shown in the table above) as well as the
actual market average closing prices for each variable for the period of January 1, 2024 through February 29, 2024:
2024
Assumptions
Actual
Market Average
(January 1, 2024 –
February 29, 2024)
Silver (per ounce)
$23.00
$22.82
Zinc (per tonne)
$2,425
$2,443
Copper (per tonne)
$8,378
$8,323
Diesel ($ per litre)
$ 0.80
$ 0.72
US$/C$ exchange rate (C$)
$ 1.34
$ 1.35
US$/Euro exchange rate (Euros)
€ 1.10
€ 1.09
US$/Mexican peso exchange rate (Mexican pesos)
Mex$16.50
Mex$17.08
US$/A$ exchange rate (A$)
$ 1.45
$ 1.52
See Risk Profile – Commodity Prices and Foreign Currencies in this MD&A for the expected impact on forecast 2024 total
cash costs per ounce on a by-product basis of certain changes in commodity prices and exchange rate assumptions.
Exploration and Corporate Development Expenditures
In 2024, Agnico Eagle expects to incur exploration and corporate development expenses of to be between $220.0 million
and $240.0 million compared with $215.8 million in 2023.
The Company’s objective is to build on recent exploration success and identify additional mineral resources and convert
mineral resources into mineral reserves. This is part of the strategy to develop the full potential of existing operations and
key projects in the Company’s pipeline.
The Company’s exploration focus remains on extending mine life at existing operations, testing near-mine opportunities
and advancing its key value driver projects. Exploration priorities for 2024 include drilling the western and deep extension
of the Detour Lake deposit to assist in the optimization of the open pit operations and to further advance a potential
underground mining scenario, growing the underground mineral reserve and mineral resource at the Odyssey mine and
continuing large exploration programs at the Hope Bay project and other operating assets.
Amortization of Property, Plant and Mine Development
Amortization of property, plant and mine development expense is expected to be between $1,560.0 million and
$1,610.0 million in 2024 compared with $1,491.8 million in 2023.
Other Expenses
General and administrative expenses are expected to be between $135.0 million and $145.0 million in 2024 compared
with $208.5 million in 2023. In 2024, the Company expects additional expenses to be between $75.0 million and
$90.0 million. This includes $60.0 to $65.0 million related to site maintenance costs primarily at Hope Bay and Northern
Territory in Australia, $5.0 to $10.0 million related to the ore sorting project at Detour Lake and $10.0 to $15.0 million
related to sustainable development activities.
Capital Expenditures
Capital expenditures, including sustaining capital, construction and development costs and capitalized exploration costs,
are expected to total approximately $1,761.6 million in 2024. The Company expects to fund its 2024 capital expenditures
through operating cash flow from the sale of its gold production and the associated by-product metals. Significant
components of the expected 2024 capital expenditures program include the following:
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
31
• $916 million in sustaining capital expenditures(i) relating to the Detour Lake mine ($274.8 million), Canadian
Malartic complex ($135.9 million), Meadowbank complex ($94.0 million), Kittila mine ($87.2 million), LaRonde
complex ($86.1 million), Meliadine mine ($70.2 million), Macassa mine ($59.4 million), Goldex mine
($52.8 million), Fosterville mine ($35.8 million), Pinos Altos mine ($19.8 million);
• $737.0 million in development capital expenditures(i) relating to the Detour Lake mine ($201.1 million), Canadian
Malartic complex ($167.5 million), Macassa mine ($97.8 million), Meliadine mine ($82.4 million), LaRonde
complex ($68.2 million), Fosterville mine ($41.1 million), San Nicolás ($17.0 million), Pinos Altos mine
($15.4 million), Goldex mine ($7.7 million), Kittila mine ($2.9 million), other projects ($35.9 million);
• $108.6 million in capitalized exploration expenditures.
The Company continues to examine other possible corporate development opportunities which may result in the
acquisition of companies or assets using the Company’s securities, cash or a combination thereof. If cash is used to fund
acquisitions, Agnico Eagle may be required to issue debt or securities to satisfy cash payment requirements.
All-in Sustaining Costs per Ounce of Gold Produced
The Company calculates all-in sustaining costs per ounce of gold produced on a by-product basis as the aggregate of total
cash costs per ounce on a by-product basis, sustaining capital expenditures (including capitalized exploration), general
and administrative expenses (including stock option expense), lease payments related to sustaining assets and reclamation
expenses, and then dividing by the number of ounces of gold produced. The all-in sustaining costs per ounce of gold
produced on a co-product basis is calculated in the same manner as the all-in sustaining costs per ounce of gold on a
by-product basis, except that the total cash costs per ounce on a co-product basis is used, meaning no adjustment is
made for by-product metal revenues.
Agnico Eagle’s all-in sustaining costs per ounce of gold produced on a by-product basis are expected to be approximately
$1,200 to $1,250 in 2024 compared with $1,179 in 2023.
Risk Profile
The Company is subject to significant risks due to the inherent nature of the business of exploration, development and
mining of properties with precious metals. The risks described below are not the only ones facing the Company. The risk
factors below may include details of how the Company seeks to mitigate these risks where possible. For a more
comprehensive discussion of these inherent risks, see “Risk Factors” in our most recent Form 40-F/AIF on file with the
SEC and Canadian provincial securities regulatory authorities.
Financial Instruments
The Company’s principal financial liabilities are comprised of accounts payable and accrued liabilities, long-term debt and
derivative financial instruments. The Company uses these financial instruments to manage its cash flows which are used
to support ongoing operations and future growth.
The Company’s principal financial assets are comprised of cash and cash equivalents, trade receivables, equity securities
and derivative financial instruments, including share purchase warrants. Cash and cash equivalents and trade receivables
are generated by the Company’s operations. Equity securities and share purchase warrants are generally strategic
investments made in other mining companies.
Using financial instruments exposes the Company to a variety of financial risks: credit risk, liquidity risk and market risk
(including interest rate risk, commodity price risk and foreign currency risk, as discussed below).
Credit risk is the risk that the counterparties to financial contracts will fail to perform on an obligation to the Company.
Credit risk is partially mitigated by dealing with what the Company believes to be high quality counterparties such as major
banks and limiting concentration risk.
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial asset. The Company attempts to mitigate liquidity risk primarily by
monitoring its debt rating and the maturity dates of existing debt and other payables.
Market risk is the risk that changes in market factors, such as interest rates, commodity prices and foreign exchange
rates, will affect the value of Agnico Eagle’s financial instruments.
(i)
Sustaining capital expenditure and development capital expenditures are non-GAAP measures that are not standardized financial measures under the financial reporting
framework used to prepare the Company’s financial statements. For a reconciliation to total capital expenditures and a discussion of the composition and usefulness of these
non-GAAP measures, see “Non-GAAP Financial Performance Measures” below.
32
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
The following table sets out a summary of the Company’s financial instruments(i) as at December 31, 2023:
Financial Instrument
Carrying Value
Associated Risks
Cash and cash equivalents
338,648
Credit, Market
Short-term investments
10,199
Credit, Market
Trade receivables
8,148
Credit, Market
Loans receivable
10,108
Credit, Market
Equity securities
323,711
Liquidity, Market
Share purchase warrants
21,546
Liquidity, Market
Fair value of derivative financial instruments
50,786
Credit, Market
Accounts payable and accrued liabilities
(750,380)
Liquidity, Market
Fair value of derivative financial instruments
(7,222)
Market
Long-term debt
(1,843,086)
Liquidity, Market
Lease obligations
(161,548)
Liquidity, Market
Note:
(i)
See Note 6 and Note 20 in the consolidated annual financial statements for details on the Company’s financial instruments, fair value measurements and financial risk
management.
Interest Rates
The Company’s current exposure to market risk for changes in interest rates relates primarily to drawdowns on its credit
facilities, Term Loan Facility and its investment portfolio. Drawdowns on the credit facilities are used primarily to fund a
portion of the capital expenditures related to the Company’s development projects and working capital requirements. As
at December 31, 2023, there were no amounts outstanding on the Company’s Old Credit Facility. Drawdowns on the Term
Loan Facility were used to fund the Yamana Transaction. As at December 31, 2023, the Company had fully drawn down
its $600.0 million Term Loan Facility. In addition, the Company invests its cash in investments with short maturities or with
frequent interest reset terms and a credit rating of R1-High or better. As a result, the Company’s interest income fluctuates
with short-term market conditions. As at December 31, 2023, short-term investments were $10.2 million.
Amounts drawn under the credit facilities and Term Loan Facility are subject to floating interest rates based on SOFR and
CORRA benchmark rates. In the past, the Company has entered into derivative instruments to hedge against unfavourable
changes in interest rates. The Company monitors its interest rate exposure and may enter into such agreements to
manage its exposure to fluctuating interest rates.
Commodity Prices and Foreign Currencies
Agnico Eagle’s net income is sensitive to metal prices and the US dollar/Canadian dollar, US dollar/Australian dollar,
US dollar/Euro and US dollar/Mexican peso exchange rates.
Changes in the market price of gold may be attributed to numerous factors such as demand, global mine production
levels, central bank purchases and sales and investor sentiment. Changes in the market prices of other metals may be
attributed to factors such as demand and global mine production levels. Changes in the market price of diesel may be
attributed to factors such as supply and demand. Changes in exchange rates may be attributed to factors such as supply
and demand for currencies and economic conditions in each country or currency area. In 2023, the ranges of metal
prices, diesel prices and exchange rates were as follows:
• Gold: $1,811 – $2,078 per ounce, averaging $1,941 per ounce;
• Silver: $20.09 – $26.07 per ounce, averaging $23.35 per ounce;
• Zinc: $2,222 – $3,509 per tonne, averaging $2,650 per tonne;
• Copper: $7,790 – $9,436 per tonne, averaging $8,487 per tonne;
• Diesel: $0.57 – $0.95 per litre, averaging $0.74 per litre;
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
33
• US dollar/Canadian dollar: C$1.31 – C$1.39 per $1.00, averaging C$1.35 per $1.00;
• US dollar/Australian dollar: A$1.40 – A$1.59 per $1.00, averaging A$1.51 per $1.00.
• US dollar/Euro: €0.89 – €0.96 per $1.00, averaging €0.92 per $1.00; and
• US dollar/Mexican peso: 16.69 – 19.49 Mexican pesos per $1.00, averaging 17.75 Mexican pesos per $1.00
In order to mitigate the impact of fluctuating by-product metal prices, the Company occasionally enters into derivative
financial instrument contracts under its Board-approved Risk Management Policies and Procedures. The Company has a
long-standing policy of no forward gold sales. However, the Risk Management Policies and Procedures does allow the
Company to use other hedging strategies where appropriate to mitigate foreign exchange and by-product metal pricing
risks. The Company occasionally buys put options, enters into price collars and enters into forward contracts to protect
minimum by-product metal prices while maintaining full exposure to the price of gold. The Risk Management Committee
has approved the strategy of using short-term call options in an attempt to enhance realized by-product metal prices. The
Company’s policy does not allow speculative trading.
The Company receives payment for all of its metal sales in US dollars and pays most of its operating and capital costs in
Canadian dollars, Australian dollars, Euros, or Mexican pesos. This gives rise to significant currency risk exposure. The
Company enters into currency hedging transactions under its Board-approved Foreign Exchange Risk Management
Policies and Procedures to hedge part of its foreign currency exposure. The policy does not permit the hedging of
translation exposure (that is, the gains and losses that arise from the accounting translation into US dollars of assets and
liabilities denominated in other currencies), as it does not give rise to cash exposure. The Company’s foreign currency
derivative financial instrument strategy includes the use of purchased puts, written calls, collars and forwards that are not
held for speculative purposes. As at December 31, 2023, there were foreign exchange derivatives outstanding related to
$3,324.7 million of 2024 and 2025 expenditures. During the year ended December 31, 2023 the Company recognized a
gain of $80.3 million on foreign exchange derivatives in the (gain) loss on derivative financial instruments line item of the
consolidated statements of income.
Cost Inputs
The Company considers, and may enter into, risk management strategies to mitigate price risk on certain consumables,
including diesel fuel. These strategies may include longer term purchasing contracts and financial and derivative
instruments. As at December 31, 2023, there were derivative financial instruments outstanding relating to 15.0 million
gallons of heating oil. During the year ended December 31, 2023 the Company recognized a loss of $0.9 million on
heating oil derivatives in the (gain) loss on derivative financial instruments line item of the consolidated statements of
income.
Operational Risk
The Detour Lake mine, Canadian Malartic complex and Meadowbank complex were the Company’s most significant
contributors in 2023 to the Company’s payable production of gold at 19.7%, 17.6% and 12.5%, respectively, and are
expected to account for a significant portion of the Company’s payable production of gold in the future.
Mining is a complex and unpredictable business and, therefore, actual payable production of gold ounces may differ from
expectations. Adverse conditions affecting mining or milling may have a material adverse impact on the Company’s
financial performance and results of operations. The Company anticipates using revenue generated by its operations to
finance the capital expenditures required at its mine projects.
Regulatory Risk
The Company’s mining and mineral processing operations, exploration activities and properties are subject to the laws
and regulations of federal, provincial, state and local governments in the jurisdictions in which the Company operates.
These laws and regulations are extensive and govern prospecting, exploration, development, production, exports, taxes,
labour standards, occupational health and safety, waste disposal, tailings management, toxic substances, environmental
protection, greenhouse gases, mine safety, reporting of payments to governments and other matters. Compliance with
such laws and regulations increases the costs of planning, designing, drilling, developing, constructing, operating,
managing, closing, reclaiming and rehabilitating mines and other facilities. New laws or regulations, amendments to
current laws and regulations governing operations and activities on mining properties or more stringent implementation or
interpretation thereof could have a material adverse effect on the Company, increase costs, cause a reduction in levels of
production and delay or prevent the development of new mining properties. Regulatory enforcement, in the form of
compliance or infraction notices, has occurred at some of the Company’s mines and, while the current risks related to
such enforcement are not expected to be material, the risk of material fines or corrective action cannot be ruled out in the
future.
34
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Controls Evaluation
The Company’s management is responsible for establishing and maintaining adequate internal control over financial
reporting (“ICFR”) and disclosure controls and procedures (“DC&P”).
ICFR is a framework designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with IFRS. Management has used the Internal
Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) in order to assess the effectiveness of the Company’s ICFR.
DC&P form a broader framework designed to provide reasonable assurance that information required to be disclosed by
the Company in its annual and interim filings and other reports filed under securities legislation is recorded, processed,
summarized and reported within the time frame specified in securities legislation and includes controls and procedures
designed to ensure that information required to be disclosed by the Company in its annual and interim filings and other
reports submitted under securities legislation is accumulated and communicated to the Company’s management to allow
timely decisions regarding required disclosure.
Together, the ICFR and DC&P frameworks provide internal control over financial reporting and disclosure. The Company
maintains disclosure controls and procedures that are designed to provide reasonable assurance that information which
is required to be disclosed in the Company’s annual and interim filings and other reports filed under securities legislation
is accumulated and communicated in a timely fashion. Due to their inherent limitations, the Company acknowledges that,
no matter how well designed, ICFR and DC&P can provide only reasonable assurance of achieving the desired control
objectives and as such may not prevent or detect all misstatements. Further, the effectiveness of ICFR is subject to the risk
that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or
procedures may change.
There have been no material changes in our internal controls during the year ended December 31, 2023 that have
materially affected, or are reasonably likely to materially affect, internal control over financial reporting.
The Company’s management, under the supervision of the Company’s Chief Executive Officer and Chief Financial Officer,
has evaluated the effectiveness of its ICFR and DC&P as at December 31, 2023. Based on this evaluation, management
concluded that the Company’s ICFR and DC&P were effective as at December 31, 2023.
Outstanding Securities
The following table sets out the maximum number of common shares that would be outstanding if all dilutive instruments
outstanding at March 15, 2024 were exercised:
Common shares outstanding
498,940,643
Employee stock options
5,493,987
Common shares held in a trust in connection with the Restricted Share Unit plan, Performance Share Unit plan and Long Term
Incentive Plan
692,738
Total
505,127,368
Critical IFRS Accounting Policies and Accounting Estimates
The Company’s consolidated annual financial statements are prepared in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. Agnico Eagle’s material
accounting policies including a summary of current and future changes in accounting policies are disclosed in Note 3 in
the consolidated annual financial statements.
The preparation of the consolidated annual financial statements in accordance with IFRS requires management to make
estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. Critical accounting
estimates have a reasonable likelihood that materially different amounts could be reported under different conditions or
using different assumptions. In making judgments about the carrying value of assets and liabilities, the Company uses
estimates based on historical experience and assumptions that are considered reasonable in the circumstances. Although
the Company evaluates its accounting estimates on an ongoing basis using the most current information available, actual
results may differ from these estimates. The critical judgments and key sources of estimation uncertainties in the
application of accounting policies during the year ended December 31, 2023 are disclosed in Note 4 to the consolidated
annual financial statements.
Management has discussed the development and selection of critical accounting policies and estimates with the Audit
Committee which has reviewed the Company’s disclosure included or incorporated by reference in this MD&A.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
35
Mineral Reserve Data
The scientific and technical information contained in this MD&A other than regarding mineral reserves and mineral
resources, relating to Nunavut, Quebec and Finland operations has been approved by Dominique Girard, Eng., Executive
Vice President & Chief Operating Officer – Nunavut, Quebec & Europe; relating to Ontario, Australia and Mexico operations
has been approved by Natasha Vaz, Executive Vice President & Chief Operating Officer – Ontario, Australia & Mexico; and
relating to exploration has been approved by Guy Gosselin, Eng. and P.Geo., Executive Vice President, Exploration, each
of whom is a “Qualified Person” for the purposes of NI 43-101.
The scientific and technical information relating to Agnico Eagle’s mineral reserves and mineral resources contained
herein (other than the Canadian Malartic complex) has been approved by Dyane Duquette, P.Geo., Vice President, Mineral
Resources Management; relating to mineral reserves and mineral resources at the Canadian Malartic complex, has been
approved by Patrick Fiset, Eng., Technical Services Manager at Canadian Malartic Corporation (for engineering open-pit),
Sylvie Lampron, Eng., Senior Project Mine Engineer at Canadian Malartic Corporation (for engineering underground) and
Pascal Lehouiller, P.Geo., Senior Resource Geologist at Canadian Malartic Corporation (for geology), each of whom is a
“Qualified Person” for the purposes of NI 43-101.
The assumptions used for the mineral reserve estimates at all mines and advanced projects held by Agnico Eagle on
December 31, 2023 (except the Detour Lake mine, Hope Bay project, Hammond Reef project, Upper Beaver project and
San Nicolas project) are $1,400 per ounce gold, $18.00 per ounce silver, $1.00 per pound zinc and $3.50 per pound
copper as at December 31, 2023. Mineral reserve estimates at the Detour Lake mine assumed $1,300 per ounce of gold.
Mineral reserve estimates at the Hope Bay project and Hammond Reef project assumed $1,350 per ounce gold. Mineral
reserves estimates at the Upper Beaver project assumed $1,200 per ounce of gold and $2.75 per pound of copper.
Mineral reserve estimates at the San Nicolas project assumed US$1,300 per ounce of gold, US$20.00 per ounce of silver,
US$3.00 per pound of copper and US$1.10 per pound of zinc. Foreign exchange rates assumptions of C$1.30 per
US$1.00, A$1.36 per US$1.00, €0.90 per US$1.00, and 18.00 Mexican pesos per US$1.00 were used for all mines and
projects, except for CAD$1.25 per US$1.00 used for Upper Beaver, Upper Canada, the Holt complex and Detour
Zone 58N; US$1.00 per EUR $1.15 used for Barsele.
36
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
The following table sets out the proven and probable mineral reserves for properties held by Agnico Eagle as of
December 31, 2023:
Proven and Probable Mineral Reserves by Property(i)(ii)
Tonnes
Gold Grade
(Grams per
Tonne)
Contained
Gold
(Ounces)(iii)
(thousands)
(thousands)
Proven Mineral Reserves
LaRonde mine
2,342
4.98
375
LaRonde Zone 5 mine
4,450
2.11
301
Canadian Malartic complex
45,491
0.58
853
Goldex mine
797
2.60
66
Akasaba West project
203
0.84
5
Detour Lake mine
118,703
0.85
3,230
Macassa mine
249
16.10
129
Meadowbank complex
3,059
1.65
162
Meliadine mine
1,780
7.08
405
Hope Bay project
93
6.77
20
Fosterville mine
679
12.52
273
Kittila mine
984
4.11
130
Pinos Altos mine
2,410
2.13
165
San Nicolás project (50%)
23,858
0.41
314
Total Proven Mineral Reserves
205,096
0.98
6,430
Probable Mineral Reserves
LaRonde mine
8,568
6.79
1,870
LaRonde Zone 5 mine
4,523
2.30
334
Canadian Malartic complex
96,760
2.27
7,065
Goldex mine
16,873
1.54
834
Akasaba West project
4,823
0.89
138
Detour Lake mine
700,346
0.74
16,698
Macassa mine
4,818
12.96
2,007
Upper Beaver project
7,992
5.43
1,395
Hammond Reef project
123,473
0.84
3,323
Meadowbank complex
12,298
4.23
1,674
Meliadine mine
16,478
5.78
3,062
Hope Bay project
16,123
6.51
3,377
Fosterville mine
7,897
5.55
1,409
Kittila mine
25,943
4.14
3,454
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
37
Proven and Probable Mineral Reserves by Property(i)(ii)
Tonnes
Gold Grade
(Grams per
Tonne)
Contained
Gold
(Ounces)(iii)
(thousands)
(thousands)
Pinos Altos mine
6,514
1.82
381
San Nicolás project (50%)
28,761
0.39
358
Total Probable Mineral Reserves
1,082,188
1.36
47,380
Total Proven and Probable Mineral Reserves
1,287,284
1.30
53,811
Notes:
(i)
Amounts presented in this table have been rounded to the nearest thousand and therefore totals may differ slightly from the addition of the numbers.
(ii) Complete information on the verification procedures, quality assurance program, quality control procedures, parameters and methods and other factors that may materially affect
scientific and technical information presented in this MD&A and definitions of certain terms used herein may be found in: the AIF under the heading “Information on Mineral
Reserves and Mineral Resources of the Company”; the Technical Report on the 2005 LaRonde Mineral Resource & Mineral Reserve Estimate filed with Canadian securities
regulatory authorities on SEDAR on March 23, 2005; the Technical Report on the Mineral Resources and Mineral Reserves at Meadowbank Gold Complex including the Amaruq
satellite deposit, Nunavut, Canada as at December 31, 2017 filed with Canadian securities regulatory authorities on SEDAR on February 14, 2018; the Updated Technical Report
on the Meliadine Gold Project, Nunavut, Canada dated February 11, 2015 filed with Canadian securities regulatory authorities on SEDAR on March 12, 2015; the Technical Report
on the Mineral Resource and Mineral Reserve Estimates for the Canadian Malartic property with an effective date of December 31, 2020 filed with the Canadian securities
regulatory authorities on SEDAR on March 25, 2021; the Technical Report on the Mineral Resource and Mineral Reserve Estimates for the Detour Lake Operation as at July 26, 2021
filed with Canadian securities regulatory authorities on October 15, 2021, with an amended and restated date of October 19, 2021; and the Technical Report on the Mineral
Resource and Mineral Reserve Estimates for the Fosterville Gold Mine in the State of Victoria, Australia as at December 31, 2018 filed on April 1, 2019.
(iii) Total contained gold ounces does not include equivalent gold ounces for the by-product metals contained in the mineral reserves.
38
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Non-GAAP Financial Performance Measures
This MD&A presents certain financial performance measures, including adjusted net income, adjusted net income per
share, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, total cash costs per
ounce of gold produced (on both a by-product and co-product basis), minesite costs per tonne, all-in sustaining costs per
ounce of gold produced (on both a by-product and co-product basis), operating margin, sustaining capital expenditures
and development capital expenditures, that are not recognized measures under IFRS. These measures may not be
comparable to similar measures reported by other gold producers. Non-GAAP financial performance measures should be
considered together with other data prepared in accordance with IFRS.
Adjusted Net Income and Adjusted Net Income Per Share
Adjusted net income takes the net income as recorded in the consolidated statements of income and adjusts for the
effects of certain non-recurring, unusual and other items that the Company believes are not reflective of the Company’s
underlying performance for the reporting period. Adjusted net income is calculated by adjusting net income for foreign
currency translation gains or losses, realized and unrealized gains or losses on derivative financial instruments, impairment
loss charges and reversals, environmental remediation charges, severance and transaction costs related to acquisitions,
integration costs, purchase price allocations to inventory, revaluation gain, self-insurance losses, gains on the sale of
non-strategic exploration properties, gains and losses on disposal of assets, multi-year health care donations, income and
mining taxes adjustments as well as other items (which include payments that relate to prior years and disposals of
supplies inventory at non-operating sites). Adjusted net income per share is calculated by dividing adjusted net income by
the number of shares outstanding at the end of the period on a basic and diluted basis.
The Company believes that adjusted net income and adjusted net income per share are useful to investors in that they
allow for the evaluation of the results of continuing operations and in making comparisons between periods. These
generally accepted industry measures are intended to provide investors with information about the Company’s continuing
income generating capabilities from its core mining business, excluding the above adjustments, which the Company
believes are not reflective of operational performance. Management uses this measure to, and believes it is helpful to
investors so they can, understand and monitor for the operating performance of the Company in conjunction with other
data prepared in accordance with IFRS.
The following table sets out the calculation of adjusted net income and adjusted net income per share for the years ended
December 31, 2023, December 31, 2022 and December 31, 2021.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
39
2023
2022
2021
(thousands of United States dollars)
Net income for the year(i) – basic
$ 1,941,307
$ 670,249
$561,945
Dilutive impact of cash settling LTIP
(4,736)
–
–
Net income for the year(i) – diluted
1,936,571
670,249
561,945
Foreign currency translation (gain) loss
(328)
(16,081)
5,672
(Gain) loss on derivative financial instruments
(68,432)
90,692
11,103
Impairment loss
787,000
55,000
–
Environmental remediation
2,712
10,417
576
Severance and transaction costs related to acquisitions
21,503
95,035
12,943
Integration costs
–
956
–
Purchase price allocation to inventory(ii)
26,477
158,510
–
Revaluation gain on Yamana Transaction
(1,543,414)
–
–
Penna self-insurance for Meadowbank fire
–
6,500
–
Gain on sale of non-strategic exploration properties
–
–
(10,000)
Net loss on disposal of property, plant and equipment
26,759
8,754
9,451
Multi-year health care donation
–
–
7,952
Other(iii)
3,262
3,258
–
Income and mining taxes adjustments(iv)
(100,910)
(79,737)
8,368
Adjusted net income for the year – basic
$ 1,095,936
$1,003,553
$608,010
Adjusted net income for the year – diluted
$ 1,091,200
$1,003,553
$608,010
Net income per share – basic
$
3.97
$
1.53
$
2.31
Net income per share – diluted
$
3.95
$
1.53
$
2.30
Adjusted net income per share – basic
$
2.24
$
2.29
$
2.49
Adjusted net income per share – diluted
$
2.23
$
2.28
$
2.48
Notes:
(i)
Net income for the year ended December 31, 2021 has been restated to reflect the retrospective application of IAS 16.
(ii) As part of the purchase price allocation in a business combination, the Company is required to determine the fair value of net assets acquired. The fair value of inventory acquired
is estimated based on the selling cost less costs to be incurred plus a profit margin on those costs resulting in a fair value increase to the carrying value of inventories acquired.
The revalued inventory sold during the year ended December 31, 2023 resulted in additional production costs of approximately $26.5 million ($15.9 million after tax). The revalued
inventory sold during the year ended December 31, 2022 resulted in additional production costs of $158.5 million ($109.8 million after tax). These non-cash fair value adjustments
which increased the cost of inventory sold during the period and are not representative of ongoing operations, were normalized from net income per share.
(iii) Other adjustments are comprised of payments that relate to prior years, disposals of supplies inventory at non-operating sites and other unusual items that management
considers are not reflective of the Company’s underlying performance in the period.
(iv) Income and mining taxes adjustments reflect items such as foreign currency translation recorded to the income and mining taxes expense, the impact of income and mining taxes
on adjusted items, recognition of previously unrecognized capital losses, the result of income and mining taxes audits, impact of changes in tax laws and adjustments to prior
period tax filings.
EBITDA and Adjusted EBITDA
EBITDA is calculated by adjusting the net income as recorded in the consolidated statements of income for finance costs,
income and mining tax expense and amortization of property, plant and mine development line items as reported in the
consolidated statements of income. Adjusted EBITDA removes the effects of certain non-recurring, unusual and other
items that the Company believes are not reflective of the Company’s underlying performance for the reporting period.
Adjusted EBITDA is calculated by adjusting the EBITDA calculation for foreign currency translation gains or losses, realized
and unrealized gains or losses on derivative financial instruments, impairment loss charges and reversals, environmental
40
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
remediation, severance and transaction costs related to acquisitions, integration costs, purchase price allocations to
inventory, revaluation gain, self-insurance losses, gains on the sale of non-strategic exploration properties, gains and
losses on disposal of assets, multi-year health care donations as well as other items (which includes payments that relate
to prior years and disposals of supplies inventory at non-operating sites).
The Company believes that EBITDA and Adjusted EBITDA are useful in that they allow for the evaluation of the cash
generating capability of the Company to fund its working capital, capital expenditure and debt repayments. These generally
accepted industry measures are intended to provide investors with information about the Company’s continuing cash
generating capability from its core mining business, excluding the above adjustments, which management believes are
not reflective of operational performance. Management uses these measures to, and believes it is helpful to investors so
they can, understand and monitor for the cash generating capability of the Company in conjunction with other data
prepared in accordance with IFRS.
The following table sets out the calculation of EBITDA and Adjusted EBITDA for the year ended December 31, 2023,
December 31, 2022 and December 31, 2021.
Year Ended December 31,
2023
2022
2021(i)
(thousands of United States dollars)
Net income for the period
$ 1,941,307
$ 670,249
$ 561,945
Finance costs
130,087
82,935
92,042
Income and mining tax expense
417,762
445,174
370,778
Amortization of property, plant and mine development
1,491,771
1,094,691
738,129
EBITDA
3,980,927
2,293,049
1,762,894
Foreign currency translation (gain) loss
(328)
(16,081)
5,672
(Gain) loss on derivative financial instruments
(68,432)
90,692
11,103
Impairment loss
787,000
55,000
–
Environmental remediation
2,712
10,417
576
Severance and transaction costs related to acquisitions
21,503
95,035
12,943
Integration costs
–
956
–
Purchase price allocation to inventory(ii)
26,477
158,510
–
Revaluation gain on Yamana Transaction
(1,543,414)
–
–
Penna self-insurance for Meadowbank fire
–
6,500
–
Gain on sale of non-strategic exploration properties
–
–
(10,000)
Net loss on disposal of property. plant and equipment
26,759
8,754
9,451
Multi-year health care donation
–
–
7,952
Other(iii)
3,262
3,258
–
Adjusted EBITDA
$ 3,236,466
$2,706,090
$1,800,591
Notes:
(i)
Net income for the year ended December 31, 2021 has been restated to reflect the retrospective application of IAS 16.
(ii) As part of the purchase price allocation in a business combination, the Company is required to determine the fair value of net assets acquired. The fair value of inventory acquired
is estimated based on the selling cost less costs to be incurred plus a profit margin on those costs resulting in a fair value increase to the carrying value of inventories acquired.
The revalued inventory sold during the year ended December 31, 2023 resulted in additional production costs of approximately $26.5 million ($15.9 million after tax). The revalued
inventory sold during the year ended December 31, 2022 resulted in additional production costs of $158.5 million ($109.8 million after tax). These non-cash fair value adjustments
which increased the cost of inventory sold during the period and are not representative of ongoing operations, were normalized from net income per share.
(iii) Other adjustments are comprised of payments that relate to prior years, disposals of supplies inventory at non-operating sites and other unusual items that management
considers are not reflective of the Company’s underlying performance in the period.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
41
Free Cash Flow and Free Cash Flow before Changes in Non-Cash Components of Working Capital
Free cash flow is calculated by deducting additions to property, plant and mine development from the cash provided by
operating activities line item as recorded in the consolidated statements of cash flows. Free cash flow before changes in
non-cash components of working capital is calculated by excluding the effect of changes in non-cash components of
working capital from free cash flow such as trade receivables, income taxes, inventory, other current assets, accounts
payable and accrued liabilities and interest payable.
The Company believes that free cash flow and free cash flow before changes in non-cash components of working capital
are useful in that they allow for the evaluation of the Company’s ability to repay creditors and return cash to shareholders
without relying on external sources of funding. These generally accepted industry measures also provide investors with
information about the Company’s financial position and its ability to generate cash to fund operational and capital
requirements as well as return cash to shareholders. Management uses these measures in conjunction with other data
prepared in accordance with IFRS to, and believes it is helpful to investors so they can, understand and monitor the cash
generating capability of the Company.
The following table sets out the calculation of free cash flow and free cash flow before changes in non-cash components
of working capital for the years ended December 31, 2023, December 31, 2022 and December 31, 2021.
2023
2022
2021
(thousands of United States dollars)
Cash provided by operating activities
$ 2,601,562
$ 2,096,636
$1,345,308
Additions to property, plant and mine development
(1,654,129)
(1,538,237)
(896,998)
Free cash flow
947,433
558,399
448,310
Changes in trade receivables
$
(7,458)
$
(12,110)
$
1,678
Changes in income taxes
(103,850)
35,010
62,424
Changes in inventory
169,168
46,236
185,090
Changes in other current assets
88,389
10,756
31,354
Changes in accounts payable and accrued liabilities
(2,778)
(59,460)
75
Changes in interest payable
2,925
(1,200)
583
Free cash flow before changes in non-cash components of working capital
$ 1,093,829
$
577,631
$ 729,514
Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne
Total cash costs per ounce of gold produced (also referred to as “total cash costs per ounce”) is reported on both a
by-product basis (deducting by-product metal revenues from production costs) and co-product basis (without deducting
by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting
production costs as recorded in the consolidated statements of (loss) income for by-product revenues, inventory
production costs, the impact of purchase price allocation in connection with mergers and acquisitions on inventory
accounting, realized gains and losses on hedges of production costs, operational care and maintenance costs due to
COVID-19 and other adjustments, which include the costs associated with a 5% in-kind royalty paid in respect of certain
portions of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind
royalty paid in respect of the Macassa mine, as well as smelting, refining and marketing charges and then dividing by the
number of ounces of gold produced. Given the nature of the fair value adjustment on inventory related to mergers and
acquisitions and the use of the total cash costs per ounce measures to reflect the cash generating capabilities of the
Company’s operations, the calculations of total cash costs per ounce for the Detour Lake, Macassa and Fosterville mines
have been adjusted for this purchase price allocation in the comparative period data and for the Canadian Malartic
complex in year ended December 31, 2023. Investors should note that total cash costs per ounce are not reflective of all
cash expenditures, as they do not include income tax payments, interest costs or dividend payments. Total cash costs per
ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold
produced on a by-product basis, except that no adjustment is made for by-product metal revenues. Accordingly, the
42
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production
costs or smelting, refining and marketing charges associated with the production and sale of by-product metals.
Total cash costs per ounce of gold produced is intended to provide investors information about the cash-generating
capabilities of the Company’s mining operations. Management also uses these measures to, and believes they are helpful
to investors so investors can, understand and monitor the performance of the Company’s mining operations. The Company
believes that total cash costs per ounce is useful to help investors understand the costs associated with producing gold
and the economics of gold mining. As market prices for gold are quoted on a per ounce basis, using the total cash costs
per ounce of gold produced on a by-product basis measure allows management and investors to assess a mine’s cash-
generating capabilities at various gold prices. Management is aware, and investors should note, that these per ounce
measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce
of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations
by using, and investors should also consider using, these measures in conjunction with data prepared in accordance with
IFRS and minesite costs per tonne as these measures are not necessarily indicative of operating costs or cash flow
measures prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the
effects of fluctuating metal prices and exchange rates.
Agnico Eagle’s primary business is gold production and the focus of its current operations and future development is on
maximizing returns from gold production, with other metal production being incidental to the gold production process.
Accordingly, all metals other than gold are considered by-products.
In this MD&A, unless otherwise indicated, total cash costs per ounce of gold produced is reported on a by-product basis.
Total cash costs per ounce of gold produced is reported on a by-product basis because (i) the majority of the Company’s
revenues are from gold, (ii) the Company mines ore, which contains gold, silver, zinc, copper and other metals, (iii) it is not
possible to specifically assign all costs to revenues from the gold, silver, zinc, copper and other metals the Company
produces, (iv) it is a method used by management and the Board to monitor operations, and (v) many other gold producers
disclose similar measures on a by-product rather than a co-product basis. Minesite costs per tonne are calculated by
adjusting production costs as recorded in the consolidated statements of (loss) income for inventory production costs,
operational care and maintenance costs due to COVID-19 and other adjustments, and then dividing by tonnage of ore
processed. As the total cash costs per ounce of gold produced can be affected by fluctuations in by – product metal prices
and foreign exchange rates, management believes that minesite costs per tonne is useful to investors in providing additional
information regarding the performance of mining operations, eliminating the impact of varying production levels.
Management also uses this measure to determine the economic viability of mining blocks. As each mining block is
evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue
on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware, and investors should note,
that this per tonne measure of performance can be affected by fluctuations in processing levels. This inherent limitation
may be partially mitigated by using this measure in conjunction with production costs and other data prepared in
accordance with IFRS.
The following tables set out a reconciliation of total cash costs per ounce of gold produced (on both a by-product basis and
co-product basis) and minesite costs per tonne to production costs, exclusive of amortization, as presented in the
consolidated statements of income in accordance with IFRS.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
43
Total Production Costs by Mine
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
(thousands of United States dollars)
LaRonde mine
$ 218,020
$ 213,393
$ 232,392
LaRonde Zone 5 mine
81,624
72,096
56,380
LaRonde complex
299,644
285,489
288,772
Canadian Malartic complex(i)
465,814
235,735
242,589
Goldex mine
112,022
103,830
96,181
Meliadine mine
343,650
318,141
250,822
Meadowbank complex
524,008
442,681
408,863
Hope Bay project
–
–
83,118
Kittila mine
205,857
210,661
192,742
Detour Lake mine(vii)
453,498
489,703
–
Macassa mine(vii)
155,046
129,774
–
Fosterville mine(vii)
131,298
204,649
–
Pinos Altos mine
145,936
144,489
141,488
Creston Mascota mine
–
1,943
8,165
La India mine
96,490
76,226
60,381
Production costs per the consolidated statements of income
$2,933,263
$2,643,321
$1,773,121
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced by Mine and Reconciliation
of Production Costs to Minesite Costs per Tonne by Mine
(thousands of United States dollars, except as noted)
LaRonde Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
235,991
284,780
308,946
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 218,020
$
924
$ 213,393
$
749
$ 232,392
$
752
Inventory adjustments(ii)
13,448
57
6,569
23
(19,807)
(64)
Realized gains and losses on hedges of
production costs
2,966
13
6,879
24
(9,923)
(32)
Other adjustments(viii)
17,478
73
15,331
54
18,905
61
Total cash costs (co-product basis)
$ 251,912
$
1,067
$ 242,172
$
850
$ 221,567
$
717
By-product metal revenues
(53,694)
(227)
(64,654)
(227)
(74,499)
(241)
Total cash costs (by-product basis)
$ 198,218
$
840
$ 177,518
$
623
$ 147,068
$
476
44
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
LaRonde Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
1,501
1,670
1,837
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 218,020
$
145
$ 213,393
$
128
$ 232,392
$
127
Production costs (C$)
C$ 293,627
C$
196
C$ 278,014
C$
166
C$ 291,681
C$
159
Inventory adjustments (C$)(iii)
20,501
14
5,360
3
(21,969)
(12)
Other adjustments (C$)(viii)
(12,990)
(9)
(12,208)
(7)
(11,921)
(7)
Minesite costs (C$)
C$ 301,138
C$
201
C$ 271,166
C$
162
C$ 257,791
C$
140
LaRonde Zone 5 Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
70,657
71,557
70,788
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$
81,624
$
1,155
$
72,096
$
1,008
$
56,380
$
796
Inventory adjustments(ii)
(3,494)
(49)
(503)
(7)
2,009
28
Realized gains and losses on hedges of
production costs
988
14
1,602
22
(2,346)
(32)
Other adjustments(viii)
2,705
38
136
2
171
2
Total cash costs (co-product basis)
$
81,823
$
1,158
$
73,331
$
1,025
$
56,214
$
794
By-product metal revenues
(711)
(10)
(259)
(4)
(288)
(4)
Total cash costs (by-product basis)
$
81,112
$
1,148
$
73,072
$
1,021
$
55,926
$
790
LaRonde Zone 5 Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
1,157
1,146
1,124
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$
81,624
$
71
$
72,096
$
63
$
56,380
$
50
Production costs (C$)
C$ 109,991
C$
95
C$ 93,655
C$
82
C$ 70,770
C$
63
Inventory adjustments (C$)(iii)
(4,717)
(4)
(289)
(1)
2,447
2
Minesite costs (C$)
C$ 105,274
C$
91
C$ 93,366
C$
81
C$ 73,217
C$
65
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
45
LaRonde complex
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
306,648
356,337
379,734
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 299,644
$
977
$ 285,489
$
801
$ 288,772
$
760
Inventory adjustments(ii)
9,954
32
6,066
17
(17,798)
(47)
Realized gains and losses on hedges of
production costs
3,954
13
8,481
24
(12,269)
(32)
Other adjustments(viii)
20,183
66
15,467
43
19,076
51
Total cash costs (co-product basis)
$ 333,735
$
1,088
$ 315,503
$
885
$ 277,781
$
732
By-product metal revenues
(54,405)
(177)
(64,913)
(182)
(74,787)
(197)
Total cash costs (by-product basis)
$ 279,330
$
911
$ 250,590
$
703
$ 202,994
$
535
LaRonde complex
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
2,658
2,816
2,961
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 299,644
$
113
$ 285,489
$
101
$ 288,772
$
98
Production costs (C$)
C$ 403,618
C$
152
C$ 371,669
C$
132
C$ 362,451
C$
122
Inventory adjustments (C$)(iii)
15,784
6
5,071
1
(19,522)
(6)
Other adjustments (C$)(viii)
(12,990)
(5)
(12,208)
(4)
(11,921)
(4)
Minesite costs (C$)
C$ 406,412
C$
153
C$ 364,532
C$
129
C$ 331,008
C$
112
Canadian Malartic complex
Per Ounce of Gold Produced(i)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
603,955
329,396
357,392
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 465,814
$
771
$ 235,735
$
716
$ 242,589
$
679
Inventory adjustments(ii)
4,738
8
(1,867)
(6)
1,213
3
Realized gains and losses on hedges of
production costs
–
–
–
–
(78)
–
Purchase price allocation to inventory(vi)
(26,447)
(44)
–
–
–
–
In-kind royalties and other adjustments(viii)
60,149
100
30,568
93
557
2
Total cash costs (co-product basis)
$ 504,254
$
835
$ 264,436
$
803
$ 244,281
$
684
By-product metal revenues
(6,732)
(11)
(5,087)
(16)
(7,233)
(21)
Total cash costs (by-product basis)
$ 497,522
$
824
$ 259,349
$
787
$ 237,048
$
663
46
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Canadian Malartic complex
Per Tonne(i)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
17,333
9,770
11,130
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 465,814
$
27
$ 235,735
$
24
$ 242,589
$
22
Production costs (C$)
C$ 627,946
C$
36
C$ 302,734
C$
31
C$ 307,005
C$
28
Inventory adjustments (C$)(iii)
6,919
–
902
–
2,042
–
Purchase price allocation to inventory(C$)(vi)
(34,555)
(2)
–
–
–
–
In-kind royalties and other adjustments (C$)(viii)
79,962
5
35,981
4
–
–
Minesite costs (C$)
C$ 680,272
C$
39
C$ 339,617
C$
35
C$ 309,047
C$
28
Goldex Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
140,983
141,502
134,053
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 112,022
$
795
$ 103,830
$
734
$
96,181
$
717
Inventory adjustments(ii)
1,650
11
1,227
9
(264)
(2)
Realized gains and losses on hedges of
production costs
1,944
14
3,048
21
(4,407)
(33)
Other adjustments(viii)
336
2
199
1
206
2
Total cash costs (co-product basis)
$ 115,952
$
822
$ 108,304
$
765
$
91,716
$
684
By-product metal revenues
(378)
(2)
(48)
–
(42)
–
Total cash costs (by-product basis)
$ 115,574
$
820
$ 108,256
$
765
$
91,674
$
684
Goldex Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
2,887
2,940
2,874
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 112,022
$
39
$ 103,830
$
35
$
96,181
$
33
Production costs (C$)
C$ 151,185
C$
52
C$ 135,084
C$
46
C$ 120,667
C$
42
Inventory adjustments (C$)(iii)
2,189
1
1,818
1
(374)
–
Minesite costs (C$)
C$ 153,374
C$
53
C$ 136,902
C$
47
C$ 120,293
C$
42
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
47
Meliadine Mine
Per Ounce of Gold Produced(ix)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
364,141
372,874
367,630
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 343,650
$
944
$ 318,141
$
853
$ 250,822
$
682
Inventory adjustments(ii)
11,898
33
653
2
9,686
26
Realized gains and losses on hedges of
production costs
1,682
4
3,500
9
(12,674)
(34)
IAS 16 amendments(v)
–
–
–
–
(14,059)
(38)
Other adjustments(viii)
128
–
313
1
252
1
Total cash costs (co-product basis)
$ 357,358
$
981
$ 322,607
$
865
$ 234,027
$
637
By-product metal revenues
(630)
(1)
(753)
(2)
(808)
(3)
Total cash costs (by-product basis)
$ 356,728
$
980
$ 321,854
$
863
$ 233,219
$
634
Meliadine Mine
Per Tonne(x)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
1,918
1,757
1,501
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 343,650
$
179
$ 318,141
$
181
$ 250,822
$
167
Production costs (C$)
C$ 462,052
C$
241
C$ 407,871
C$
232
C$ 315,720
C$
210
Inventory adjustments (C$)(iii)
16,188
8
2,510
2
11,784
7
IAS 16 amendments (C$)(v)
–
–
–
–
(17,706)
(11)
Minesite costs (C$)
C$ 478,240
C$
249
C$ 410,381
C$
234
C$ 309,798
C$
206
Meadowbank complex
Per Ounce of Gold Produced(xi)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
431,666
373,785
322,852
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 524,008
$
1,214
$ 442,681
$
1,184
$ 408,863
$
1,266
Inventory adjustments(ii)
(12,021)
(28)
14,807
40
(548)
(2)
Realized gains and losses on hedges of
production costs
(1,205)
(3)
(1,691)
(4)
(14,256)
(44)
Operational care and maintenance due to
COVID-19(iv)
–
–
(1,436)
(4)
(2,612)
(8)
IAS 16 amendments(v)
–
–
–
–
(2,374)
(7)
Other adjustments(viii)
(19)
–
34
–
1,117
4
Total cash costs (co-product basis)
$ 510,763
$
1,183
$ 454,395
$
1,216
$ 390,190
$
1,209
By-product metal revenues
(2,958)
(7)
(2,127)
(6)
(2,414)
(8)
Total cash costs (by-product basis)
$ 507,805
$
1,176
$ 452,268
$
1,210
$ 387,776
$
1,201
48
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Meadowbank complex
Per Tonne(xii)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
3,843
3,739
3,556
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 524,008
$
136
$ 442,681
$
118
$ 408,863
$
115
Production costs (C$)
C$ 702,879
C$
183
C$ 574,895
C$
154
C$ 515,800
C$
145
Inventory adjustments (C$)(iii)
(15,934)
(4)
12,203
3
(982)
–
Operational care and maintenance due to
COVID-19 (C$)(iv)
–
–
(1,793)
–
(3,326)
(1)
IAS 16 amendments (C$)(v)
–
–
–
–
(2,995)
(1)
Minesite costs (C$)
C$ 686,945
C$
179
C$ 585,305
C$
157
C$ 508,497
C$
143
Hope Bay Project
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
–
–
56,229
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$
–
$
–
$
–
$
–
$
83,118
$
1,478
Inventory adjustments(ii)
–
–
–
–
(13,713)
(244)
Operational care and maintenance due to
COVID-19(iv)
–
–
–
–
(9,964)
(177)
Other adjustments(viii)
–
–
–
–
374
7
Total cash costs (co-product basis)
$
–
$
–
$
–
$
–
$
59,815
$
1,064
By-product metal revenues
–
–
–
–
(46)
(1)
Total cash costs (by-product basis)
$
–
$
–
$
–
$
–
$
59,769
$
1,063
Hope Bay Project
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
–
–
228
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$
–
$
–
$
–
$
–
$
83,118
$
365
Production costs (C$)
C$
–
C$
–
C$
–
C$
–
C$ 104,291
C$
457
Inventory adjustments (C$)(iii)
–
–
–
–
(17,801)
(78)
Operational care and maintenance due to
COVID-19 (C$)(iv)
–
–
–
–
(12,304)
(53)
Minesite costs (C$)
C$
–
C$
–
C$
–
C$
–
C$ 74,186
C$
326
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
49
Kittila Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
234,402
216,947
239,240
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 205,857
$
878
$ 210,661
$
971
$ 192,742
$
806
Inventory adjustments(ii)
2,958
13
(5,349)
(25)
5,908
25
Realized gains and losses on hedges of
production costs
(2,999)
(13)
7,329
34
577
2
Other adjustments(viii)
(1,338)
(6)
274
1
705
3
Total cash costs (co-product basis)
$ 204,478
$
872
$ 212,915
$
981
$ 199,932
$
836
By-product metal revenues
(358)
(1)
(295)
(1)
(249)
(1)
Total cash costs (by-product basis)
$ 204,120
$
871
$ 212,620
$
980
$ 199,683
$
835
Kittila Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
1,954
1,925
2,052
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 205,857
$
105
$ 210,661
$
109
$ 192,742
$
94
Production costs (€)
€ 191,023
€
98
€ 198,484
€
103
€ 163,165
€
80
Inventory adjustments (€)(iii)
2,112
1
(3,853)
(2)
5,330
2
Minesite costs (€)
€ 193,135
€
99
€ 194,631
€
101
€ 168,495
€
82
Detour Lake Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022(vii)
Year Ended
December 31, 2021
Gold production (ounces)
677,446
651,182
–
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 453,498
$
669
$ 489,703
$
752
$
–
$
–
Inventory adjustments(ii)
8,232
12
(8,195)
(13)
–
–
Realized gains and losses on hedges of
production costs
4,867
8
–
–
–
–
Purchase price allocation to inventory(vi)
–
–
(74,509)
(113)
–
–
In-kind royalties and other adjustments(viii)
33,149
49
24,483
37
–
–
Total cash costs (co-product basis)
$ 499,746
$
738
$ 431,482
$
663
$
–
$
–
By-product metal revenues
(2,073)
(3)
(3,712)
(6)
–
–
Total cash costs (by-product basis)
$ 497,673
$
735
$ 427,770
$
657
$
–
$
–
50
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Detour Lake Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022(vii)
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
25,435
22,782
–
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 453,498
$
18
$ 489,703
$
21
$
–
$
–
Production costs (C$)
C$ 611,244
C$
24
C$ 637,567
C$
28
C$
–
C$
–
Inventory adjustments (C$)(iii)
11,038
–
(8,782)
–
–
–
Purchase price allocation to inventory (C$)(vi)
–
–
(95,791)
(4)
–
–
In-kind royalties and other adjustments (C$)(viii)
39,323
2
31,917
1
–
–
Minesite costs (C$)
C$ 661,605
C$
26
C$ 564,911
C$
25
C$
–
C$
–
Macassa Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022(vii)
Year Ended
December 31, 2021
Gold production (ounces)
228,535
180,833
–
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 155,046
$
678
$ 129,774
$
718
$
–
$
–
Inventory adjustments(ii)
1,382
6
38
–
–
–
Realized gains and losses on hedges of
production costs
3,127
14
–
–
–
–
Purchase price allocation to inventory(vi)
–
–
(10,326)
(57)
–
–
In-kind royalties and other adjustments(viii)
8,041
35
4,237
23
–
–
Total cash costs (co-product basis)
$ 167,596
$
733
$ 123,723
$
684
$
–
$
–
By-product metal revenues
(649)
(2)
(298)
(1)
–
–
Total cash costs (by-product basis)
$ 166,947
$
731
$ 123,425
$
683
$
–
$
–
Macassa Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022(vii)
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
442
280
–
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 155,046
$
351
$ 129,774
$
463
$
–
$
–
Production costs (C$)
C$ 209,928
C$
475
C$ 168,400
C$
602
C$
–
C$
–
Inventory adjustments (C$)(iii)
1,836
4
533
2
–
–
Purchase price allocation to inventory (C$)(vi)
–
–
(13,248)
(47)
–
–
In-kind royalties and other adjustments (C$)(viii)
10,517
24
5,538
20
–
–
Minesite costs (C$)
C$ 222,281
C$
503
C$ 161,223
C$
577
C$
–
C$
–
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
51
Fosterville Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022(vii)
Year Ended
December 31, 2021
Gold production (ounces)
277,694
338,327
–
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 131,298
$
473
$ 204,649
$
605
$
–
$
–
Inventory adjustments(ii)
1,345
5
(2,691)
(8)
–
–
Realized gains and losses on hedges of
production costs
3,097
11
–
–
–
–
Purchase price allocation to inventory(vi)
–
–
(73,674)
(218)
–
–
Other adjustments(viii)
52
–
–
–
–
–
Total cash costs (co-product basis)
$ 135,792
$
489
$ 128,284
$
379
$
–
$
–
By-product metal revenues
(397)
(1)
(527)
(1)
–
–
Total cash costs (by-product basis)
$ 135,395
$
488
$ 127,757
$
378
$
–
$
–
Fosterville Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022(vii)
Year Ended
December 31, 2021
Tonnes of ore milled (thousands of tonnes)
651
524
–
(thousands)
($ per tonne)
(thousands)
($ per tonne)
(thousands)
($ per tonne)
Production costs
$ 131,298
$
202
$ 204,649
$
391
$
–
$
–
Production costs (A$)
A$ 197,921
A$
304 A$ 293,875
A$
561 A$
–
A$
–
Inventory adjustments (A$)(iii)
(2,155)
(3)
(3,045)
(6)
–
–
Purchase price allocation to inventory (A$)(vi)
–
–
(104,507)
(199)
–
–
Minesite costs (A$)
A$ 195,766
A$
301 A$ 186,323
A$
356 A$
–
A$
–
Pinos Altos Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
97,642
96,522
126,932
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$ 145,936
$
1,495
$ 144,489
$
1,497
$ 141,488
$
1,115
Inventory adjustments(ii)
2,979
31
(2,295)
(24)
241
2
Realized gains and losses on hedges of
production costs
(2,819)
(29)
(879)
(9)
(2,515)
(20)
Other adjustments(viii)
1,248
12
1,235
13
1,627
13
Total cash costs (co-product basis)
$ 147,344
$
1,509
$ 142,550
$
1,477
$ 140,841
$
1,110
By-product metal revenues
(27,339)
(280)
(21,983)
(228)
(31,965)
(252)
Total cash costs (by-product basis)
$ 120,005
$
1,229
$ 120,567
$
1,249
$ 108,876
$
858
52
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Pinos Altos Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore processed (thousands of tonnes)
1,656
1,510
1,899
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$ 145,936
$
88
$ 144,489
$
96
$ 141,488
$
75
Inventory adjustments(iii)
160
–
(2,295)
(2)
241
–
Minesite costs
$ 146,096
$
88
$ 142,194
$
94
$ 141,729
$
75
Creston Mascota Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
638
2,630
12,801
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$
–
$
–
$
1,943
$
739
$
8,165
$
638
Inventory adjustments(ii)
–
–
222
84
(349)
(27)
Other adjustments(viii)
–
–
78
30
327
25
Total cash costs (co-product basis)
$
–
$
–
$
2,243
$
853
$
8,143
$
636
By-product metal revenues
–
–
(158)
(60)
(2,914)
(228)
Total cash costs (by-product basis)
$
–
$
–
$
2,085
$
793
$
5,229
$
408
Creston Mascota Mine
Per Tonne(xiii)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore processed (thousands of tonnes)
–
–
–
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$
–
$
–
$
1,943
$
–
$
8,165
$
–
Inventory adjustments(ii)
–
–
222
–
(349)
–
Other adjustments(viii)
–
–
(2,165)
–
(7,816)
–
Minesite costs
$
–
$
–
$
–
$
–
$
–
$
–
La India Mine
Per Ounce of Gold Produced
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Gold production (ounces)
75,904
74,672
63,529
(thousands) ($ per ounce)
(thousands) ($ per ounce)
(thousands) ($ per ounce)
Production costs
$
96,490
$
1,271
$
76,226
$
1,021
$
60,381
$
950
Inventory adjustments(ii)
(1,335)
(18)
3,598
48
98
2
Other adjustments(viii)
584
8
699
9
458
7
Total cash costs (co-product basis)
$
95,739
$
1,261
$
80,523
$
1,078
$
60,937
$
959
By-product metal revenues
(1,566)
(20)
(1,689)
(22)
(1,298)
(20)
Total cash costs (by-product basis)
$
94,173
$
1,241
$
78,834
$
1,056
$
59,639
$
939
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
53
La India Mine
Per Tonne
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Tonnes of ore processed (thousands of tonnes)
3,010
5,102
6,018
(thousands) ($ per tonne )
(thousands) ($ per tonne )
(thousands) ($ per tonne )
Production costs
$
96,490
$
32
$
76,226
$
15
$
60,381
$
10
Inventory adjustments(iii)
(1,335)
–
3,598
1
98
–
Minesite costs
$
95,155
$
32
$
79,824
$
16
$
60,479
$
10
Notes:
(i)
The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter.
(ii) Under the Company’s revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total
cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue.
(iii) This inventory adjustment reflects production costs associated with the portion of production still in inventory.
(iv) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company’s Nunavut mine sites in response to the COVID-19 pandemic and
primarily includes payroll and other incidental costs associated with maintaining the sites and properties and payroll costs associated with employees who were not working
during the period of reduced or suspended operations. These expenses also include payroll costs of employees who could not work following the period of temporary suspension or
reduced operations due to the Company’s effort to prevent or curtail community transmission of COVID-19.
(v)
Amendments to IAS 16 issued by the IASB in 2020 clarified that entities were prohibited from deducting amounts received from selling items produced from the cost of property,
plant and mine development while the Company is preparing the asset for its intended use. Instead, sales proceeds and the cost of producing these items must be recognized in
the consolidated statements of income. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. The amendments apply retrospectively,
but only to assets brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the
earliest period presented in the financial statements in which the Company first applies the amendments. The Company adopted the standard on the effective date and applied
it retrospectively to the fiscal year beginning January 1, 2021. For the year ended December 31, 2021, the Company has made an adjustment for these IAS 16 amendments to
calculations of total cash costs per ounce of gold produced (on both a by-product and co-product basis) and minesite costs per tonne of ore to ensure the measures for this year
are comparable to the measures as calculated for prior years. No adjustment for the IAS 16 amendments were made in respect of these measures for the years ended December 31,
2022 and 2023.
(vi) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa and Fosterville mines as
part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction and this adjustment reflects the fair value allocated to inventory on
Canadian Malartic complex as part of the purchase price allocation.
(vii) On February 8, 2022, the Company completed the Merger. Accordingly, the contributions from the Detour Lake, Macassa and Fosterville mines for the year ended December 31,
2022 reflects the period from February 8 to December 31, 2022.
(viii)Other adjustments consists of costs associated with a 5% in-kind royalty paid in respect of the Canadian Malartic complex, a 2% in-kind royalty paid in respect of the Detour Lake
mine, a 1.5% in-kind royalty paid in respect of the Macassa mine and smelting, refining, and marketing charges to production costs. For the year ended December 31, 2021,
in-kind royalties for the Canadian Malartic complex were included in production costs.
(ix) The Meliadine mine’s total cash cost per ounce of gold produced for the year ended December 31, 2021 excludes 24,057 ounces of payable production of gold which were produced
prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021.
(x)
The Meliadine mine’s minesite cost per tonne for the year ended December 31, 2021 excludes 213,867 tonnes of ore which were processed prior to the achievement of commercial
production at the Tiriganiaq open pit deposit on August 15, 2021.
(xi) The Meadowbank Complex’s total cash cost per ounce of gold produced for the year ended December 31, 2021 excludes 1,956 ounces of payable production of gold which were
produced prior to the achievement of commercial production at the Amaruq underground project on August 1, 2022.
(xii) The Meadowbank Complex’s minesite cost per tonne for the year ended December December 31, 2021 excludes 14,299 tonnes of ore which were processed prior to the achievement
of commercial production at the Amaruq underground project on August 1, 2022.
(xiii) The Creston Mascota mine’s total cash cost per tonne for the year ended December 31, 2022 excludes approximately $2.2 million of production costs incurred during the year ended
December 31, 2022 following the cessation of mining activities at the Bravo pit. The Creston Mascota mine’s minesite costs per tonne for the year ended December 31, 2021
excludes approximately $7.8 million of production costs incurred during the three months ended December 31, 2021 following the cessation of mining activities at the Bravo pit
during the third quarter of 2020.
All-in Sustaining Costs per Ounce of Gold Produced
All-in sustaining costs per ounce of gold produced (also referred to as “all-in sustaining costs per ounce” or “AISC per
ounce”) on a by-product basis is calculated as the aggregate of total cash costs on a by-product basis, sustaining capital
expenditures (including capitalized exploration), general and administrative expenses (including stock options), lease
payments related to sustaining assets and reclamation expenses, and then dividing by the number of ounces of gold
produced. These additional costs reflect the additional expenditures that are required to be made to maintain current
production levels. AISC per ounce on a co-product basis is calculated in the same manner as AISC per ounce on a
by-product basis, except that the total cash costs on a co-product basis are used, meaning no adjustment has been made
for by-product metal revenues. Investors should note that AISC per ounce is not reflective of all cash expenditures as it
does not include income tax payments, interest costs or dividend payments, nor does it include non-cash expenditures,
such as depreciation and amortization. In this MD&A, unless otherwise indicated, all-in sustaining costs per ounce of gold
produced is reported on a byproduct basis (see “Non-GAAP measures – Total cash costs per ounce of gold produced” for
a discussion of regarding the Company’s use of by-product basis reporting).
Management believes that AISC per ounce is helpful to investors as it reflects total sustaining expenditures of producing
and selling an ounce of gold while maintaining current operations and, as such, provides helpful information about
54
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
operating performance. Management is aware, and investors should note, that these per ounce measures of performance
can be affected by fluctuations in foreign exchange rates and, in the case of AISC per ounce on a by-product basis,
by-product metal prices. Management compensates for these inherent limitations by using, and investors should also
consider using, these measures in conjunction with data prepared in accordance with IFRS and minesite costs per tonne,
as AISC per ounce is not necessarily indicative of operating costs or cash flow measures prepared in accordance with
IFRS.
The Company follows the guidance on calculation of AISC per ounce released by the World Gold Council (“WGC”) in
2018. The WGC is a non-regulatory market development organization for the gold industry that has worked closely with its
member companies to develop guidance in respect of relevant non-GAAP measures. Notwithstanding the Company’s
adoption of the WGC’s guidance, AISC per ounce of gold produced reported by the Company may not be comparable to
data reported by other gold mining companies.
The following tables set out a reconciliation of production costs to all-in sustaining costs per ounce of gold produced for
the years ended December 31, 2023, December 31, 2022, and December 31, 2021 on both a by-product basis
(deducting by-product metal revenues from production costs) and co-product basis (without deducting by-product metal
revenues).
Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced
(United States dollars per ounce of gold produced, except where noted)
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Year Ended
December 31, 2021
Production costs per the consolidated statements of income
(thousands of United States dollars)
$2,933,263
$2,643,321
$1,773,121
Gold production (ounces)(i)(ii)
3,439,654
3,135,007
2,060,392
Production costs per ounce of gold production
$
853
$
843
$
861
Adjustments:
Inventory adjustments(iii)
9
2
(8)
Purchase price allocation to inventory(iv)
(8)
(51)
–
IAS 16 amendments(v)
–
–
(8)
Realized gains and losses on hedges of production costs
3
6
(22)
Operational care and maintenance costs due to COVID-19(vi)
–
–
(6)
Other(vii)
36
25
12
Total cash costs per ounce of gold produced (co-product basis)(viii)
$
893
$
825
$
829
By-product metal revenues
(28)
(32)
(59)
Total cash costs per ounce of gold produced (by-product basis)(viii)
$
865
$
793
$
770
Adjustments:
Sustaining capital expenditures (including capitalized exploration)
235
232
207
General and administrative expenses (including stock option expense)
61
70
69
Non-cash reclamation provision and sustaining leases(ix)
18
14
13
All-in sustaining costs per ounce of gold produced (by-product basis)
$
1,179
$
1,109
$
1,059
By-product metal revenues
28
32
59
All-in sustaining costs per ounce of gold produced (co-product basis)
$
1,207
$
1,141
$
1,118
Notes:
(i)
Gold production for the year ended December 31, 2021 excludes 24,057 ounces of payable production of gold at the Meliadine mine which were produced prior to the achievement
of commercial production at the Tiriganiaq open pit deposit on August 15, 2021.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
55
(ii) Gold production for the year ended December 31, 2021 excludes 1,956 ounces of payable production of gold at the Meadowbank complex which were produced prior to the
achievement of commercial production at the Amaruq underground project on August 1, 2022.
(iii) Under the Company’s revenue recognition policy, revenue from contracts with customers is recognized upon the transfer of control over metals sold to the customer. As the total
cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the portion of production not yet recognized as revenue.
(iv) On February 8, 2022, the Company completed the Merger and this adjustment reflects the fair value allocated to inventory at the Detour Lake, Macassa and Fosterville mines as
part of the purchase price allocation. On March 31, 2023, the Company completed Yamana Transaction and this adjustment reflects the fair value allocated to inventory on
Canadian Malartic complex as part of the purchase price allocation.
(v)
Certain previously reported line items have been restated to reflect the retrospective application of IAS 16. This adjustment eliminates the effects of the retrospective application
of the IAS 16 amendments on the total cash costs per ounce of gold produced (by-product and co-product) as well as all-in sustaining costs (by-product and co-product).
(vi) This adjustment reflects the costs associated with the temporary suspension of mining activities at the Company’s mine sites in response to the COVID-19 pandemic which
primarily includes payroll and other incidental costs associated with maintaining the sites and properties, and payroll costs associated with employees who were not working
during the period of reduced or suspended operations. These expenses also include payroll costs of employees who could not work following the period of temporary suspension or
reduced operations due to the Company’s effort to prevent or curtail community transmission of COVID-19.
(vii) Other adjustments consists of in-kind royalties, smelting, refining and marketing charges to production costs.
(viii)The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. See
“Non-GAAP Financial Performance Measures – Total Cash Costs per Ounce of Gold Produced and Minesite Costs per Tonne” for more information on the Company’s use of total
cash cost per ounce of gold produced.
(ix) Sustaining leases are lease payments related to sustaining assets.
Operating Margin
Operating margin is calculated by deducting production costs from revenue from mining operations. In order to reconcile
operating margin to net income as recorded in the consolidated financial statements, the Company adds the following
items to the operating margin: income and mining taxes expense; other expenses (income); care and maintenance
expenses; foreign currency translation (gain) loss; environmental remediation costs; gain (loss) on derivative financial
instruments; finance costs; general and administrative expenses; amortization of property, plant and mine development;
exploration and corporate development expenses; revaluation gain and impairment losses (reversals). The Company
believes that operating margin is a useful measure to investors as it reflects the operating performance of its individual
mines associated with the ongoing production and sale of gold and by-product metals without allocating Company-wide
overhead, such as exploration and corporate development expenses, amortization of property, plant and mine
development, general and administrative expenses, finance costs, gain and losses on derivative financial instruments,
environmental remediation costs, foreign currency translation gains and losses, other expenses and income and mining
tax expenses. Management uses this measure internally to plan and forecast future operating results. Management
believes this measure is helpful to investors as it provides them with additional information about the Company’s underlying
operating results, though it should be evaluated in conjunction with other data prepared in accordance with IFRS. For a
reconciliation of operating margin to revenue from operations, see “Three Year Financial and Operating Summary”.
Sustaining and Development Capital Expenditures by Mine
Capital expenditures are classified into sustaining capital expenditures and development capital expenditures. Sustaining
capital expenditures are expenditures incurred during the production phase to sustain and maintain existing assets so
they can achieve constant expected levels of production from which the Company will derive economic benefits. Sustaining
capital expenditures include expenditure for assets to retain their existing productive capacity as well as to enhance
performance and reliability of the operations. Development capital expenditures represent the spending at new projects
and/or expenditures at existing operations that are undertaken with the intention to increase production levels or mine life
above the current plans. Management uses these measures in the capital allocation process and to assess the
effectiveness of its investments. Management believes these measures are useful so investors can assess the purpose
and effectiveness of the capital expenditures split between sustaining and development in each reporting period. The
classification between sustaining and development capital expenditures does not have a standardized definition in
accordance with IFRS and other companies may classify expenditures in a different manner.
56
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Reconciliation of Sustaining and Development Capital Expenditures to the Statements of Cash Flows
Three Months Ended December 31,
Year Ended December 31,
(thousands of United States dollars)
2023
2022
2021
2023
2022
2021
LaRonde mine
$ 21,890
$ 26,247
$ 30,301
$
72,828
$
92,921
$ 96,299
LaRonde Zone 5 mine
3,368
2,272
4,338
10,253
9,258
14,095
Canadian Malartic complex(ii)
18,809
18,858
18,978
91,028
69,137
72,749
Goldex mine
12,267
7,125
7,789
27,203
25,125
31,017
Meliadine mine(i)
21,244
19,392
13,567
75,275
62,086
50,341
Meadowbank complex
21,297
40,872
11,729
121,653
86,435
48,917
Hope Bay project
–
15
9,447
147
3,620
44,160
Kittila mine
16,514
14,503
15,144
49,539
48,799
42,632
Detour Lake mine(iii)
67,123
58,546
–
249,765
214,060
–
Macassa mine(iii)
15,888
9,558
–
45,029
30,298
–
Fosterville mine(iii)
9,322
19,525
–
34,646
56,343
–
Pinos Altos mine
7,041
8,333
8,395
30,141
26,500
22,216
La India mine
(6)
1,793
4,237
100
8,963
10,117
Sustaining capital expenditures
$214,757
$227,039
$123,925
$ 807,607
$ 733,545
$432,543
LaRonde mine
$ 12,401
$ 11,870
$ 11,872
$
44,862
$
54,829
$ 48,373
LaRonde Zone 5 mine
5,236
6,787
1,999
24,068
17,191
4,782
Canadian Malartic complex(ii)
50,509
42,649
23,207
169,960
128,551
56,613
Goldex mine
2,850
9,952
4,761
24,491
29,628
18,673
Akasaba mine
7,880
7,757
–
34,945
9,453
–
Meliadine mine(i)
25,990
21,023
21,403
118,880
93,808
103,995
Meadowbank complex
(279)
(1,379)
932
(279)
9
9,643
Amaruq Underground Project
2
2,993
22,712
359
53,385
99,603
Hope Bay project
128
4,034
384
4,426
13,168
7,882
Kittila mine
5,177
15,918
21,272
31,463
52,764
77,175
Detour Lake mine(iii)
66,671
63,824
–
172,903
180,072
–
Macassa mine(iii)
26,120
27,998
–
101,230
92,175
–
Fosterville mine(iii)
16,591
7,399
–
52,793
38,368
–
Pinos Altos mine
(635)
6,682
8,622
5,297
26,749
23,777
La India mine
–
338
3,219
–
6,129
9,383
Other
3,263
2,290
1,481
7,863
7,076
11,971
Development capital expenditures
$221,904
$230,135
$121,864
$ 793,261
$ 803,355
$471,870
Total capital expenditures
$436,661
$457,174
$245,789
$1,600,868
$1,536,900
$904,413
Working capital adjustments
(10,919)
(56,343)
(8,500)
53,261
1,337
(7,415)
Additions to property, plant and mine
development per the consolidated
statements of cash flows
$425,742
$400,831
$237,289
$1,654,129
$1,538,237
$896,998
Notes:
(i)
Certain previously reported line items have been restated to reflect the retrospective application of IAS 16.
(ii) The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter.
(iii) On February 8, 2022, the Company completed the Merger. Accordingly, the contributions from the Detour Lake, Macassa and Fosterville mines for the year ended December 31,
2022 reflects the period from February 8 to December 31, 2022.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
57
AGNICO EAGLE MINES LIMITED
SUMMARIZED QUARTERLY DATA
(thousands of United States dollars, except where noted)
Three Months Ended
March 31,
2023
June 30,
2023
September 30,
2023
December 31,
2023
Total
2023
Operating margin(i):
Revenues from mining operations
$ 1,509,661
$1,718,197
$1,642,411
$1,756,640
$ 6,626,909
Production costs
653,144
743,253
759,411
777,455
2,933,263
Total operating margin(i)
856,517
974,944
883,000
979,185
3,693,646
Impairment loss
–
–
–
787,000
787,000
Amortization of property, plant and mine
development
303,959
381,262
414,994
391,556
1,491,771
Revaluation gain
(1,543,414)
–
–
–
(1,543,414)
Exploration, corporate and other
150,473
127,342
196,694
124,711
599,220
Income (loss) before income and mining taxes
1,945,499
466,340
271,312
(324,082)
2,359,069
Income and mining taxes
128,608
139,519
92,706
56,929
417,762
Net income (loss) for the period
$ 1,816,891
$ 326,821
$ 178,606
$ (381,011)
$ 1,941,307
Net income (loss) per share – basic
$
3.87
$
0.66
$
0.36
$
(0.77)
$
3.97
Net income (loss) per share – diluted
$
3.86
$
0.66
$
0.36
$
(0.77)
$
3.95
Cash flows:
Cash provided by operating activities
$
649,613
$ 722,000
$ 502,088
$ 727,861
$ 2,601,562
Realized prices:
Gold (per ounce)
$
1,892
$
1,975
$
1,928
$
1,982
$
1,946
Silver (per ounce)
$
22.95
$
24.43
$
23.55
$
23.88
$
23.72
Zinc (per tonne)
$
3,169
$
2,343
$
2,360
$
2,700
$
2,705
Copper (per tonne)
$
10,113
$
7,898
$
8,223
$
7,828
$
8,282
Payable production(iii):
Gold (ounces)
LaRonde mine
59,533
58,635
49,303
68,520
235,991
LaRonde Zone 5 mine
20,074
18,145
15,193
17,245
70,657
Canadian Malartic complex(ii)
80,685
177,755
177,243
168,272
603,955
Goldex mine
34,023
37,716
35,880
33,364
140,983
Meliadine mine
90,467
87,682
89,707
96,285
364,141
Meadowbank complex
111,110
94,775
116,555
109,226
431,666
Kittila mine
63,692
50,130
59,408
61,172
234,402
Detour Lake mine
161,857
169,352
152,762
193,475
677,446
Macassa mine
64,115
57,044
46,792
60,584
228,535
Fosterville mine
86,558
81,813
59,790
49,533
277,694
Pinos Altos mine
24,134
22,159
25,386
25,963
97,642
Creston Mascota mine
244
165
141
88
638
La India mine
16,321
17,833
22,269
19,481
75,904
Total gold (ounces)
812,813
873,204
850,429
903,208
3,439,654
Silver (thousands of ounces)
545
619
589
655
2,408
Zinc (tonnes)
2,287
2,611
1,420
1,384
7,702
Copper (tonnes)
530
746
659
682
2,617
58
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
SUMMARIZED QUARTERLY DATA
(thousands of United States dollars, except where noted)
Three Months Ended
March 31,
2023
June 30,
2023
September 30,
2023
December 31,
2023
Total
2023
Payable metal sold:
Gold (ounces)
LaRonde mine
48,162
61,920
62,413
54,043
226,538
LaRonde Zone 5 mine
15,461
18,923
17,748
16,042
68,174
Canadian Malartic complex(ii)(iv)
71,809
168,257
164,974
165,518
570,558
Goldex mine
35,917
37,114
35,517
31,692
140,240
Meliadine mine
89,586
79,153
93,426
96,320
358,485
Meadowbank complex
110,025
98,980
108,579
121,831
439,415
Kittila mine
60,720
51,800
58,540
59,000
230,060
Detour Lake mine
163,294
160,281
149,747
177,083
650,405
Macassa mine
62,928
57,102
44,400
58,100
222,530
Fosterville mine
89,000
85,500
60,750
49,000
284,250
Pinos Altos mine
24,236
22,355
24,543
25,000
96,134
La India mine
16,420
17,463
22,460
21,000
77,343
Total gold (ounces)
787,558
858,848
843,097
874,629
3,364,132
Silver (thousands of ounces)
552
597
571
634
2,354
Zinc (tonnes)
2,131
2,743
2,108
1,544
8,526
Copper (tonnes)
568
713
657
692
2,630
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
59
AGNICO EAGLE MINES LIMITED
SUMMARIZED QUARTERLY DATA
(thousands of United States dollars, except where noted)
Three Months Ended
March 31,
2022(v)
June 30,
2022(v)
September 30,
2022(v)
December 31,
2022(v)
Total
2022
Operating margin(i):
Revenues from mining operations
$1,325,688
$1,581,058
$1,449,697
$1,384,719
$5,741,162
Production costs
661,735
657,636
657,073
666,877
2,643,321
Total operating margin(i)
663,953
923,422
792,624
717,842
3,097,841
Impairment loss
–
–
–
55,000
55,000
Amortization of property, plant and mine development
255,644
269,891
283,486
285,670
1,094,691
Exploration, corporate and other
228,638
196,680
293,149
114,260
832,727
Income before income and mining taxes
179,671
456,851
215,989
262,912
1,115,423
Income and mining taxes
60,595
166,462
149,311
68,806
445,174
Net income for the period
$ 119,076
$ 290,389
$
66,678
$ 194,106
$ 670,249
Net income per share – basic
$
0.31
$
0.64
$
0.15
$
0.43
$
1.53
Net income per share – diluted
$
0.31
$
0.63
$
0.15
$
0.43
$
1.53
Cash flows:
Cash provided by operating activities
$ 507,432
$ 633,266
$ 575,438
$ 380,500
$2,096,636
Realized prices:
Gold (per ounce)
$
1,880
$
1,866
$
1,726
$
1,728
$
1,797
Silver (per ounce)
$
24.11
$
22.21
$
18.68
$
21.51
$
21.63
Zinc (per tonne)
$
3,480
$
3,947
$
3,435
$
2,979
$
3,440
Copper (per tonne)
$
10,243
$
8,953
$
5,674
$
8,206
$
8,381
Payable production(iii):
Gold (ounces)
LaRonde mine
87,549
70,736
63,573
62,922
284,780
LaRonde Zone 5 mine
17,488
17,774
19,048
17,247
71,557
Canadian Malartic complex(ii)
80,509
87,186
75,262
86,439
329,396
Goldex mine
34,445
36,877
33,889
36,291
141,502
Meliadine mine
80,704
97,572
91,201
103,397
372,874
Meadowbank complex
59,765
96,698
122,994
94,328
373,785
Kittila mine
45,508
64,814
61,901
44,724
216,947
Detour Lake mine
100,443
195,515
175,487
179,737
651,182
Macassa mine
24,488
61,262
51,775
43,308
180,833
Fosterville mine
81,827
86,065
81,801
88,634
338,327
Pinos Altos mine
25,170
23,020
23,041
25,291
96,522
Creston Mascota mine
1,006
635
538
451
2,630
La India mine
21,702
20,016
16,285
16,669
74,672
Total gold (ounces)
660,604
858,170
816,795
799,438
3,135,007
Silver (thousands of ounces)
609
588
553
542
2,292
Zinc (tonnes)
1,069
2,568
2,108
2,450
8,195
Copper (tonnes)
769
778
653
701
2,901
60
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
SUMMARIZED QUARTERLY DATA
(thousands of United States dollars, except where noted)
Three Months Ended
March 31,
2022
June 30,
2022
September 30,
2022
December 31,
2022
Total
2022
Payable metal sold(iv):
Gold (ounces)
LaRonde mine
70,967
61,296
89,667
59,565
281,495
LaRonde Zone 5 mine
17,595
13,538
22,304
18,747
72,184
Canadian Malartic complex(ii)
72,268
85,160
75,067
84,697
317,192
Goldex mine
33,884
36,681
34,019
34,946
139,530
Meliadine mine
87,772
97,354
89,652
102,933
377,711
Meadowbank complex
48,755
93,737
119,531
99,434
361,457
Hope Bay project
98
–
–
–
98
Kittila mine
51,615
64,378
63,813
46,560
226,366
Detour Lake mine
131,837
188,517
164,300
174,803
659,457
Macassa mine
29,530
58,050
50,739
43,197
181,516
Fosterville mine
101,950
93,177
79,458
81,750
356,335
Pinos Altos mine
24,787
24,730
23,436
26,080
99,033
Creston Mascota mine
855
599
650
240
2,344
La India mine
21,009
19,306
17,610
15,950
73,875
Total gold (ounces)
692,922
836,523
830,246
788,902
3,148,593
Silver (thousands of ounces)
612
559
598
585
2,354
Zinc (tonnes)
1,034
1,679
2,099
1,915
6,727
Copper (tonnes)
766
783
647
720
2,916
Notes:
(i)
Operating margin (a non-GAAP measure) is calculated as revenues from mining operations less production costs. Details by minesite are disclosed in the “Three Year Financial
and Operating Summary” below. For a discussion of the composition and usefulness of operating margin, see “Non-GAAP Financial Performance Measures”.
(ii) The information set out in this table reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023 and 100% interest thereafter.
(iii) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the
Company, whether such products are sold during the period or held as inventories at the end of the period.
(iv) The Canadian Malartic complex’s payable metal sold excludes the 5.0% net smelter return royalty, a 2% in-kind royalty paid in respect of the Detour Lake mine, a 1.5% in-kind
royalty paid in respect of the Macassa mine.
(v)
Certain previously reported line items for quarters ended in 2022 have been restated to reflect the final purchase price allocation of the Merger.
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
61
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Revenues from mining operations
LaRonde mine
$
483,065
$
553,931
$
654,577
LaRonde Zone 5 mine
130,711
129,569
121,236
LaRonde complex
613,776
683,500
775,813
Canadian Malartic complex(ii)
1,124,480
575,938
645,607
Goldex mine
272,801
250,512
241,404
Meliadine mine
697,431
677,713
678,766
Meadowbank complex
858,209
645,021
592,835
Hope Bay project
−
144
115,439
Kittila mine
448,719
407,669
414,656
Detour Lake mine
1,262,839
1,188,741
−
Macassa mine
431,827
327,028
−
Fosterville mine
552,468
645,371
–
Pinos Altos mine
212,876
199,830
259,446
Creston Mascota mine
–
4,476
27,784
La India mine
151,483
135,219
117,875
Revenues from mining operations
6,626,909
5,741,162
3,869,625
Production costs
2,933,263
2,643,321
1,773,121
Operating margin(i)
3,693,646
3,097,841
2,096,504
Impairment loss
787,000
55,000
–
Amortization of property, plant and mine development
1,491,771
1,094,691
738,129
Revaluation gain
(1,543,414)
–
–
Exploration, corporate and other
599,220
832,727
425,652
Income before income and mining taxes
2,359,069
1,115,423
932,723
Income and mining taxes
417,762
445,174
370,778
Net income for the year
$ 1,941,307
$
670,249
$
561,945
Net income per share – basic
$
3.97
$
1.53
$
2.31
Net income per share – diluted
$
3.95
$
1.53
$
2.30
Cash provided by operating activities
$ 2,601,562
$ 2,096,636
$ 1,345,308
Cash used in investing activities
$ (2,760,783)
$
(710,458)
$ (1,264,003)
Cash used in financing activities
$
(163,958)
$
(914,853)
$
(297,242)
Dividends declared per share
$
1.60
$
1.60
$
1.40
Capital expenditures per Consolidated Statements of Cash Flows
$ 1,654,129
$ 1,538,237
$
896,998
Realized price per ounce of gold
$
1,946
$
1,797
$
1,794
Realized price per ounce of silver
$
23.72
$
21.63
$
25.07
Realized price per tonne of zinc
$
2,705
$
3,440
$
2,947
Realized price per tonne of copper
$
8,282
$
8,381
$
9,724
Weighted average number of common shares outstanding – basic (thousands)
488,723
437,678
243,708
Total assets
$28,684,949
$23,494,808
$10,216,090
Long-term debt
$ 1,743,086
$ 1,242,070
$ 1,340,223
Shareholders’ equity
$19,422,915
$16,241,345
$ 5,999,771
62
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Operating Summary
LaRonde Mine
Revenues from mining operations
$ 483,065
$ 553,931
$ 654,577
Production costs
218,020
213,393
232,392
Operating margin(i)
$ 265,045
$ 340,538
$ 422,185
Amortization of property, plant and mine development
101,016
79,067
89,697
Tonnes of ore milled
1,501,481
1,669,900
1,837,310
Gold – grams per tonne
5.23
5.62
5.50
Gold production – ounces
235,991
284,780
308,946
Silver production – thousands of ounces
575
609
724
Zinc production – tonnes
7,663
8,195
8,837
Copper production – tonnes
2,543
2,901
2,955
Production costs per ounce of gold produced ($ per ounce basis)
$
924
$
749
$
752
Total cash costs per ounce of gold produced – co-product basis(ii)
$
1,067
$
850
$
717
By-product metal revenues
(227)
(227)
(241)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
840
$
623
$
476
Production costs per tonne
C$
196
C$
166
C$
159
Minesite costs per tonne(iii)
C$
201
C$
162
C$
140
LaRonde Zone 5 Mine
Revenues from mining operations
$ 130,711
$ 129,569
$ 121,236
Production costs
81,624
72,096
56,380
Operating margin(i)
$
49,087
$
57,473
$
64,856
Amortization of property, plant and mine development
13,333
8,927
7,635
Tonnes of ore milled
1,156,915
1,145,788
1,124,014
Gold – grams per tonne
2.01
2.05
2.07
Gold production – ounces
70,657
71,557
70,788
Silver production – thousands of ounces
13
13
14
Production costs per ounce of gold produced ($ per ounce basis)
$
1,155
$
1,008
$
796
Total cash costs per ounce of gold produced – co-product basis(ii)
$
1,158
$
1,025
$
794
By-product metal revenues
(10)
(4)
(4)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
1,148
$
1,021
$
790
Production costs per tonne
C$
95
C$
82
C$
63
Minesite costs per tonne(iii)
C$
91
C$
81
C$
65
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
63
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
LaRonde Complex
Revenues from mining operations
$
613,777
$ 683,499
$
775,813
Production costs
299,644
285,489
288,772
Operating margin(i)
$
314,133
$ 398,010
$
487,041
Amortization of property, plant and mine development
114,349
87,994
97,332
Tonnes of ore milled
2,658,396
2,815,688
2,961,324
Gold – grams per tonne
3.83
4.17
4.20
Gold production – ounces
306,648
356,337
379,734
Silver production – thousands of ounces
588
622
738
Zinc production – tonnes
7,663
8,195
8,837
Copper production – tonnes
2,543
2,901
2,955
Production costs per ounce of gold produced ($ per ounce basis)
$
977
$
801
$
760
Total cash costs per ounce of gold produced – co-product basis(ii)
$
1,088
$
885
$
732
By-product metal revenues
(177)
(182)
(197)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
911
$
703
$
535
Production costs per tonne
C$
152
C$
132
C$
122
Minesite costs per tonne(iii)
C$
153
C$
129
C$
112
Canadian Malartic Complex(iv)
Revenues from mining operations
$ 1,124,480
$ 575,938
$
645,607
Production costs
465,814
235,735
242,589
Operating margin(i)
$
658,666
$ 340,203
$
403,018
Amortization of property, plant and mine development
340,737
127,842
167,157
Tonnes of ore milled
17,332,886
9,769,942
11,130,195
Gold – grams per tonne
1.17
1.15
1.11
Gold production – ounces
603,955
329,396
357,392
Silver production – thousands of ounces
311
245
290
Production costs per ounce of gold produced ($ per ounce basis)
$
771
$
716
$
679
Total cash costs per ounce of gold produced – co-product basis(ii)
$
835
$
803
$
684
By-product metal revenues
(11)
(16)
(21)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
824
$
787
$
663
Production costs per tonne
C$
36
C$
31
C$
28
Minesite costs per tonne(iii)
C$
39
C$
35
C$
28
64
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Goldex Mine
Revenues from mining operations
$ 272,801
$ 250,512
$ 241,404
Production costs
112,022
103,830
96,181
Operating margin(i)
$ 160,779
$ 146,682
$ 145,223
Amortization of property, plant and mine development
39,069
42,160
37,432
Tonnes of ore milled
2,886,927
2,940,103
2,873,589
Gold – grams per tonne
1.74
1.68
1.60
Gold production – ounces
140,983
141,502
134,053
Production costs per ounce of gold produced ($ per ounce basis)
$
795
$
734
$
717
Total cash costs per ounce of gold produced – co-product basis(ii)
$
822
$
765
$
684
By-product metal revenues
(2)
–
–
Total cash costs per ounce of gold produced – by-product basis(ii)
$
820
$
765
$
684
Production costs per tonne
C$
52
C$
46
C$
42
Minesite costs per tonne(iii)
C$
53
C$
47
C$
42
Meliadine Mine
Revenues from mining operations
$ 697,431
$ 677,713
$ 678,766
Production costs
343,650
318,141
250,822
Operating margin(i)
$ 353,781
$ 359,572
$ 427,944
Amortization of property, plant and mine development
182,530
155,482
110,819
Tonnes of ore milled
1,918,143
1,756,971
1,714,892
Gold – grams per tonne
6.11
6.83
7.37
Gold production – ounces
364,141
372,874
391,687
Silver production – thousands of ounces
27
35
30
Production costs per ounce of gold produced ($ per ounce basis)
$
944
$
853
$
682
Total cash costs per ounce of gold produced – co-product basis(ii)(v)
$
981
$
865
$
637
By-product metal revenues
(1)
(2)
(3)
Total cash costs per ounce of gold produced – by-product basis(ii)(v)
$
980
$
863
$
634
Production costs per tonne
C$
241
C$
232
C$
210
Minesite costs per tonne(iii)(vi)
C$
249
C$
234
C$
206
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
65
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Meadowbank Complex
Revenues from mining operations
$ 858,209
$ 645,021
$ 592,835
Production costs
524,008
442,681
408,863
Operating margin(i)
$ 334,201
$ 202,340
$ 183,972
Amortization of property, plant and mine development
192,509
117,068
111,508
Tonnes of ore milled
3,842,649
3,739,419
3,570,491
Gold – grams per tonne
3.86
3.40
3.07
Gold production – ounces
431,666
373,785
324,808
Silver production – thousands of ounces
125
103
94
Production costs per ounce of gold produced ($ per ounce basis)
$
1,214
$
1,184
$
1,266
Total cash costs per ounce of gold produced – co-product basis(ii)(vii)
$
1,183
$
1,216
$
1,209
By-product metal revenues
(7)
(6)
(8)
Total cash costs per ounce of gold produced – by-product basis(ii)(vii)
$
1,176
$
1,210
$
1,201
Production costs per tonne
C$
183
C$
154
C$
145
Minesite costs per tonne(iii)(viii)
C$
179
C$
157
C$
143
Hope Bay Project
Revenues from mining operations
$
–
$
144
$ 115,439
Production costs
–
–
83,118
Operating margin(i)
$
–
$
144
$
32,321
Amortization of property, plant and mine development
–
–
11,238
Tonnes of ore milled
–
–
227,739
Gold – grams per tonne
–
–
8.42
Gold production – ounces
–
–
56,229
Silver production – thousands of ounces
–
–
4
Production costs per ounce of gold produced ($ per ounce basis)
$
–
$
–
$
1,478
Total cash costs per ounce of gold produced – co-product basis(ii)
$
–
$
–
$
1,064
By-product metal revenues
–
–
(1)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
–
$
–
$
1,063
Production costs per tonne
C$
–
C$
–
C$
457
Minesite costs per tonne(iii)
C$
–
C$
–
C$
326
66
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Kittila Mine
Revenues from mining operations
$
448,719
$
407,669
$ 414,656
Production costs
205,857
210,661
192,742
Operating margin(i)
$
242,862
$
197,008
$ 221,914
Amortization of property, plant and mine development
102,686
96,975
90,715
Tonnes of ore milled
1,954,215
1,924,784
2,051,918
Gold – grams per tonne
4.48
4.13
4.19
Gold production – ounces
234,402
216,947
239,240
Silver production – thousands of ounces
15
13
11
Production costs per ounce of gold produced ($ per ounce basis)
$
878
$
971
$
806
Total cash costs per ounce of gold produced – co-product basis(ii)
$
872
$
981
$
836
By-product metal revenues
(1)
(1)
(1)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
871
$
980
$
835
Production costs per tonne
€
98
€
103
€
80
Minesite costs per tonne(iii)
€
99
€
101
€
82
Detour Lake Mine
Revenues from mining operations
$ 1,262,839
$ 1,188,741
$
–
Production costs
453,498
489,703
–
Operating margin(i)
$
809,341
$
699,038
$
–
Amortization of property, plant and mine development
161,819
200,360
–
Tonnes of ore milled
25,434,854
22,781,511
–
Gold – grams per tonne
0.91
0.97
–
Gold production – ounces
677,446
651,182
–
Silver production – thousands of ounces
79
125
–
Production costs per ounce of gold produced ($ per ounce basis)
$
669
$
752
$
–
Total cash costs per ounce of gold produced – co-product basis(ii)
$
738
$
663
$
–
By-product metal revenues
(3)
(6)
–
Total cash costs per ounce of gold produced – by-product basis(ii)
$
735
$
657
$
–
Production costs per tonne
C$
24
C$
28
C$
–
Minesite costs per tonne(iii)
C$
26
C$
25
C$
–
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
67
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Macassa Mine
Revenues from mining operations
$431,827
$327,028
$
–
Production costs
155,046
129,774
−
Operating margin(i)
$276,781
$197,254
$
–
Amortization of property, plant and mine development
155,944
83,780
–
Tonnes of ore milled
441,588
280,012
–
Gold – grams per tonne
16.47
20.47
–
Gold production – ounces
228,535
180,833
–
Silver production – thousands of ounces
21
17
–
Production costs per ounce of gold produced ($ per ounce basis)
$
678
$
718
$
–
Total cash costs per ounce of gold produced – co-product basis(ii)
$
733
$
684
$
–
By-product metal revenues
(2)
(1)
–
Total cash costs per ounce of gold produced – by-product basis(ii)
$
731
$
683
$
–
Production costs per tonne
C$
475
C$
602
C$
–
Minesite costs per tonne(iii)
C$
503
C$
577
C$
–
Fosterville Mine
Revenues from mining operations
$552,468
$645,371
$
–
Production costs
131,298
204,649
–
Operating margin(i)
$421,170
$440,722
$
–
Amortization of property, plant and mine development
88,044
65,074
–
Tonnes of ore milled
650,666
524,007
–
Gold – grams per tonne
13.61
20.41
–
Gold production – ounces
277,694
338,327
–
Silver production – thousands of ounces
20
32
–
Production costs per ounce of gold produced ($ per ounce basis)
$
473
$
605
$
–
Total cash costs per ounce of gold produced – co-product basis(ii)
$
489
$
379
$
–
By-product metal revenues
(1)
(1)
–
Total cash costs per ounce of gold produced – by-product basis(ii)
$
488
$
378
$
–
Production costs per tonne
A$
304
A$
561
A$
–
Minesite costs per tonne(iii)
A$
301
A$
356
A$
–
68
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
Pinos Altos Mine
Revenues from mining operations
$ 212,876
$ 199,830
$ 259,446
Production costs
145,936
144,489
141,488
Operating margin(i)
$
66,940
$
55,341
$ 117,958
Amortization of property, plant and mine development
63,125
57,459
61,268
Tonnes of ore processed
1,656,466
1,510,393
1,899,477
Gold – grams per tonne processed at the mill
1.92
2.07
2.20
Gold production – ounces
97,642
96,522
126,932
Silver production – thousands of ounces
1,153
1,014
1,285
Production costs per ounce of gold produced ($ per ounce basis)
$
1,495
$
1,497
$
1,115
Total cash costs per ounce of gold produced – co-product basis(ii)
$
1,509
$
1,477
$
1,110
By-product metal revenues
(280)
(228)
(252)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
1,229
$
1,249
$
858
Production costs per tonne
$
88
$
96
$
75
Minesite costs per tonne(iii)
$
88
$
94
$
75
Creston Mascota Mine
Revenues from mining operations
$
–
$
4,476
$
27,784
Production costs
–
1,943
8,165
Operating margin(i)
$
–
$
2,533
$
19,619
Amortization of property, plant and mine development
–
–
334
Tonnes of ore processed
–
–
–
Gold – grams per tonne
–
–
–
Gold production – ounces
638
2,630
12,801
Silver production – thousands of ounces
1
7
105
Production costs per ounce of gold produced ($ per ounce basis)
$
–
$
739
$
638
Total cash costs per ounce of gold produced – co-product basis(ii)
$
–
$
853
$
636
By-product metal revenues
–
(60)
(228)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
–
$
793
$
408
Production costs per tonne
$
–
$
–
$
–
Minesite costs per tonne(iii)(ix)
$
–
$
–
$
–
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
69
AGNICO EAGLE MINES LIMITED
THREE YEAR FINANCIAL AND OPERATING SUMMARY
(thousands of United States dollars, except where noted)
2023
2022
2021
La India Mine
Revenues from mining operations
$ 151,483
$ 135,219
$ 117,875
Production costs
96,490
76,226
60,381
Operating margin(i)
$
54,993
$
58,993
$
57,494
Amortization of property, plant and mine development
37,140
49,373
45,910
Tonnes of ore processed
3,009,922
5,101,814
6,018,341
Gold – grams per tonne
0.87
0.59
0.56
Gold production – ounces
75,904
74,672
63,529
Silver production – thousands of ounces
66
77
48
Production costs per ounce of gold produced ($ per ounce basis)
$
1,271
$
1,021
$
950
Total cash costs per ounce of gold produced – co-product basis(ii)
$
1,261
$
1,078
$
959
By-product metal revenues
(20)
(22)
(20)
Total cash costs per ounce of gold produced – by-product basis(ii)
$
1,241
$
1,056
$
939
Production costs per tonne
$
32
$
15
$
10
Minesite costs per tonne(iii)
$
32
$
16
$
10
Notes:
(i)
Operating margin is calculated as revenues from mining operations less production costs. Operating margin is not a recognized measure under IFRS and may not be comparable
to data reported by other gold producers. Refer to “Non-GAAP Financial Performance Measures – Operating Margin” in this MD&A for additional details.
(ii) The total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Refer to
“Non-GAAP Financial Performance Measures” and “Non-GAAP Financial Performance Measures – Total Cash Costs Per Ounce of Gold Produced and Minesite Costs per Tonne” in
this MD&A for additional details.
(iii) Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Refer to “Non-GAAP Financial
Performance Measures” and “Non-GAAP Financial Performance Measures – Total Cash Costs Per Ounce of Gold Produced and Minesite Costs per Tonne” in this MD&A for
additional details.
(iv) The information set out in this table for the yeare ended December 31, 2023 reflects the Company’s 50% interest in the Canadian Malartic complex up to and including March 30,
2023 and 100% interest thereafter. The information set out in this table for the year ended December 31, 2022 reflects the contributions from the Detour Lake, Macassa and
Fosterville mines for the year ended December 31, 2022 reflects the period from February 8 to December 31, 2022.
(v)
The Meliadine mine’s total cash cost per ounce of gold produced for the year ended December 31, 2021 excludes 24,057 ounces of payable gold production which were produced
prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021.
(vi) The Meliadine mine’s minesite cash cost per tonne for the year ended December 31, 2021 excludes 213,867 tonnes of ore from the Tiriganiaq open pit deposit which were processed
prior to the achievement of commercial production at the Tiriganiaq open pit deposit on August 15, 2021.
(vii) The Meadowbank complex’s total cash cost per ounce of gold produced for the year ended December 31, 2021 excludes 1,956 ounces of payable production of gold which were
produced prior to the achievement of commercial production at the Amaruq Underground project on August 1, 2022.
(viii)The Meadowbank complex’s minesite cost per tonne for the year ended December 31, 2021 excludes 14,299 tonnes of ore which were processed prior to the achievement of
commercial production at the Amaruq Underground project on August 1, 2022.
(ix) The Creston Mascota mine’s minesite costs per tonne for the year ended December 31, 2022 excludes approximately $2.2 million of production costs incurred during the
three months ended December 31, 2022 following the cessation of mining activities at the Bravo pit during the third quarter of 2020. The Creston Mascota mine’s minesite costs
per tonne calculation for the year ended December 31, 2021 excludes approximately $7.8 million of production costs incurred during the three months ended December 31, 2021
following the cessation of mining activities at the Bravo pit during the third quarter of 2020.
70
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
NOTE TO INVESTORS CONCERNING FORWARD-LOOKING INFORMATION
Certain statements in this MD&A, referred to herein as “forward-looking statements”, constitute “forward-looking
information” under the provisions of Canadian provincial securities laws and constitute “forward-looking statements”
within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements relate to,
among other things, the Company’s plans, objectives, expectations, estimates, beliefs, strategies and intentions and can
generally be identified by the use of words such as “anticipate”, “believe”, “budget”, “could”, “estimate”, “expect”,
“forecast”, “likely”, “may”, “plan”, “project”, “schedule”, “should”, “target”, “will”, “would” or other variations of these
terms or similar words. Forward-looking statements in this MD&A include the following:
• the Company’s outlook for 2024 and future periods, including estimates of metal production, ore grades, ore
tonnage, recovery rates, project timelines, drilling results, life of mine, total cash costs per ounce, all-in sustaining
costs per ounce, minesite costs per tonne, other expenses, cash flows;
• statements regarding future earnings and the sensitivity of earnings to gold and other metal prices;
• anticipated levels or trends for prices of gold and by-product metals mined by the Company or for exchange rates
between currencies in which capital is raised, revenue is generated or expenses are incurred by the Company;
• estimates of future capital expenditures, exploration expenditures, development expenditures and other cash
needs, and expectations as to the funding thereof;
• estimated timing and conclusions of studies, analyses and evaluations undertaken by the Company or others;
• statements regarding the projected exploration, development and exploitation of ore deposits, including estimates
of the timing of such exploration, development and production or decisions with respect thereto;
• estimates of mineral reserves and mineral resources and their sensitivities to gold prices and other factors, ore
grades and mineral recoveries and statements regarding anticipated future exploration results;
• anticipated timing of events at the Company’s mines, mine development projects and exploration projects;
• methods by which ore will be extracted or processed;
• estimates of future costs and other liabilities for environmental remediation;
• statements concerning expansion projects, mill throughput, optimization and projected exploration, including costs
and other estimates upon which such projections are based;
• statements regarding the Company’s ability to obtain the necessary permits and authorizations in connection with
its current or proposed operations and the anticipated timing thereof;
• statements regarding the sufficiency of the Company’s cash resources;
• statements regarding anticipated legislation and regulations, including with respect to climate change, and
estimates of the impact thereof on the Company;
• other anticipated trends with respect to the Company’s capital resources and results of operations; and
• statements regarding the impact of pandemics and other health emergencies, and measures taken to reduce the
spread of such pandemics or other health emergencies on the Company’s future operations and business.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered
reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic
and competitive uncertainties and contingencies. The factors and assumptions of Agnico Eagle upon which the forward-
looking statements in this MD&A are based, and which may prove to be incorrect, include the assumptions set out
elsewhere in this MD&A as well as: that there are no significant disruptions affecting Agnico Eagle’s operations, whether
due to labour disruptions, supply disruptions, damage to equipment, natural or man-made occurrences, pandemics,
mining or milling issues, political changes, title issues, community protests, including by First Nations groups, or otherwise;
that permitting, development, expansion and the ramp up of operations at each of Agnico Eagle’s mines, mine development
projects and exploration projects proceed on a basis consistent with expectations and that Agnico Eagle does not change
its exploration or development plans relating to such projects; that the exchange rates between the Canadian dollar, Euro,
Australian dollar, Mexican peso and the U.S. dollar will be approximately consistent with current levels or as set out in this
MD&A; that prices for gold, silver, zinc and copper will be consistent with Agnico Eagle’s expectations; that prices for key
mining and construction supplies, including labour costs, remain consistent with Agnico Eagle’s expectations; that
production meets expectations; that Agnico Eagle’s current estimates of mineral reserves, mineral resources, mineral
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
71
grades and mineral recoveries are accurate; that there are no material delays in the timing for completion of development
projects; that seismic activity at the Company’s operations at LaRonde, Goldex and other properties is as expected by the
Company; that the Company’s current plans to optimize production are successful; and that there are no material variations
in the current tax and regulatory environments that affect Agnico Eagle; and that governments, the Company or others do
not take measures in response to pandemics or otherwise that, individually or in the aggregate, materially affect the
Company’s ability to operate its business; that measures taken in connection with pandemics do not affect productivity;
that measures taken relating to, or other effects of, pandemics do not affect the Company’s ability to obtain necessary
supplies and deliver them to its mine sites.
The forward-looking statements in this MD&A reflect the Company’s views as at the date of this MD&A and involve known
and unknown risks, uncertainties and other factors which could cause the actual results, performance or achievements of
the Company or industry results to be materially different from any future results, performance or achievements expressed
or implied by such forward-looking statements. Such factors include, the risk factors set out in our most recent 40-F/AIF
on file with the SEC and Canadian provincial securities regulatory authorities. Given these uncertainties, readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except
as otherwise required by law, the Company expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any such statements to reflect any change in the Company’s expectations or any change in events,
conditions or circumstances on which any such statement is based.
Meaning of “including” and “such as”: When used in this MD&A the terms “including” and “such as” mean including and
such as, without limitation.
NOTE TO INVESTORS CONCERNING ESTIMATES OF MINERAL RESERVES AND MINERAL RESOURCES
The mineral reserve and mineral resource estimates contained in this MD&A have been prepared in accordance with the
Canadian securities administrators’ (the “CSA”) National Instrument 43-101 – Standards of Disclosure for Mineral Projects
(“NI 43-101”).
Effective February 25, 2019, the United States Securities and Exchange Commission’s (the “SEC”) disclosure
requirements and policies for mining properties were amended to more closely align with current industry and global
regulatory practices and standards, including NI 43-101. However, Canadian issuers that report in the United States using
the Multijurisdictional Disclosure System (“MJDS”), such as the Company, may still use NI 43-101 rather than the SEC
disclosure requirements when using the SEC’s MJDS registration statement and annual report forms. Accordingly, mineral
reserve and mineral resource information contained in this MD&A may not be comparable to similar information disclosed
by U.S. companies.
Investors are cautioned that while the SEC now recognizes “measured mineral resources”, “indicated mineral resources”
and “inferred mineral resources”, investors should not assume that any part or all of the mineral deposits in these
categories will ever be converted into a higher category of mineral resources or into mineral reserves. These terms have a
great amount of uncertainty as to their economic and legal feasibility. Accordingly, investors are cautioned not to assume
that any “measured mineral resources”, “indicated mineral resources”, or “inferred mineral resources” that the Company
reports in this MD&A are or will be economically or legally mineable.
Further, “inferred mineral resources” have a great amount of uncertainty as to their existence and as to their economic
and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a
higher category. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility
or pre-feasibility studies, except in limited circumstances. Investors are cautioned not to assume that all or any part of an
inferred mineral resource exists or is or will ever be economically or legally mineable.
The mineral reserve and mineral resource data set out in this MD&A are estimates, and no assurance can be given that
the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized. The Company
does not include equivalent gold ounces for by-product metals contained in mineral reserves in its calculation of contained
ounces and mineral reserves are not reported as a subset of mineral resources. See “Operations & Production – Mineral
Reserves and Mineral Resources” in the AIF for additional information.
72
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
Annual Audited
Consolidated
Financial Statements
(Prepared in accordance with International
Financial Reporting Standards)
MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of Agnico Eagle Mines Limited (“Agnico Eagle” or the “Company”) is responsible for establishing and
maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed
by, or under the supervision of, the Company’s Chief Executive Officer and Chief Financial Officer and effected by the
Company’s Board, management and other personnel, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
The Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, assessed the
effectiveness of the Company’s internal control over financial reporting as of December 31, 2023. In making this
assessment, the Company’s management used the criteria outlined by the Committee of Sponsoring Organizations of the
Treadway Commission in Internal Control – Integrated Framework issued in 2013. Based on its assessment, management
concluded that, as of December 31, 2023, the Company’s internal control over financial reporting was effective.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2023 has been audited by
Ernst & Young LLP, an independent registered public accounting firm, as stated in their report that appears herein.
Toronto, Canada
March 22, 2024
By /s/ AMMAR AL-JOUNDI
Ammar Al-Joundi
President and Chief Executive Officer
By /s/ JAMIE PORTER
Jamie Porter
Executive Vice-President, Finance and
Chief Financial Officer
2
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Agnico Eagle Mines Limited
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheets of Agnico Eagle Mines Limited (the “Company”) as of
December 31, 2023, and 2022, the related consolidated statements of income, comprehensive income, equity and cash
flows for the years then ended, and the related notes (collectively referred to as the “consolidated financial statements”).
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the
Company at December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended
in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (the “PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on the
criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (2013 framework), and our report dated March 22, 2024, expressed an unqualified opinion
thereon.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to
express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial
statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements
that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or
disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex
judgments. The communication of the critical audit matters does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matters below providing a
separate opinion on the critical audit matters or on the accounts or disclosures to which they relate.
Acquisition of Canadian assets of Yamana Gold Inc., including Canadian Malartic
Complex
Description of the Matter
As discussed in Note 5 to the financial statements, on March 31, 2023, the Company
completed the acquisition of the Canadian Assets of Yamana Gold Inc, including
50% of the Canadian Malartic Complex and a 100% interest in the Wasamac project
for total consideration of $5,557.1 million. The transaction was accounted for as a
business combination. In determining the fair value of assets acquired and liabilities
assumed, the Company ascribed a value of $3,765.5 million to property, plant and
mine development assets acquired and $2,882.2 million to goodwill. The company
also recognized a re-measurement gain through net income of $1,543.4 million.
Significant assumptions used to estimate the value of mineral interests included in
property, plant and mine development assets included long-term commodity prices,
discount rates, estimated quantities of mineralization to be valued using the income
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
3
approach, and estimates of future operating and capital costs. The Company
discloses significant judgments, estimates and assumptions in respect of the
business combination in Note 4 to the consolidated financial statements and the
results of their analysis in Note 5.
This matter was identified as a critical audit matter due to the significant estimation
uncertainty and judgment required by management to determine the fair value of
mineral interests which comprise a portion of the property, plant and mine
development acquired. The significant estimation was primarily due to the
complexity of inputs and assumptions to the valuation model prepared by
management to measure the fair value and the sensitivity of the fair values to the
significant underlying assumptions.
How We Addressed the Matter in
Our Audit
Our procedures included obtaining an understanding, evaluating the design, and
testing the operating effectiveness of controls over the Company’s business
combination process, including the controls related to establishing the fair value of
property, plant and mine development acquired. Our procedures also included,
among others, involving professionals with specialized skills and knowledge to
evaluate the discount rate against current industry and economic trends and
company-specific risk premiums, comparing long-term commodity prices against
market data, including a range of analyst forecasts, and performed sensitivity
analyses over these assumptions to assess the impact on the fair value of property,
plant and mine development acquired. We tested the completeness, accuracy, and
relevance of underlying data used in the Company’s models.
We assessed the estimated quantities of mineralization and operating and capital
cost estimates that form the basis of cash flow estimates by comparing to information
developed by management’s specialists. We involved our mining specialists in
obtaining an understanding of the procedures performed by management’s
specialists to estimate and characterize known mineralization, and to determine the
extent of mineralization for which value should be ascribed within the purchase
accounting. We also involved our mining specialists in evaluating the methods and
assumptions employed by management’s specialists to develop operating and
capital cost inputs that form the basis of cash flow estimates.
Impairment assessment for Goodwill and Long-Lived Assets
Description of the Matter
At December 31, 2023, the carrying value of property, plant and mine development
was $21,221.9 million and the carrying value of goodwill was $4,157.7 million. The
Company’s impairment tests required management to make significant assumptions
in determining the recoverable amount of cash generating units, such as gold price,
discount rate, estimated quantities of mineralization, estimates of future operating
and capital costs and Net Asset Value (NAV) multiples. The Company discloses
significant judgements, estimates and assumptions in respect of impairment in
Note 4 to the consolidated financial statements and the results of their analysis in
Note 24.
This matter was identified as a critical audit matter due to the significant estimation
uncertainty and judgement applied by management in determining the recoverable
amount, primarily due to the sensitivity of the underlying significant assumptions to
the future cash flows and the effect changes in these assumptions would have on
the recoverable amount.
How We Addressed the Matter in
Our Audit
Our procedures included obtaining an understanding, evaluating the design, and
testing the operating effectiveness of controls over the Company’s impairment
process. Our procedures also included, among other things, involving professionals
with specialized skills and knowledge to evaluate the discount rate against current
industry and economic trends, comparing gold prices against market data including
a range of analyst forecasts, comparing NAV multiples, where applicable, to the
4
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
market information including analyst estimates, considering the characteristics of
the assets, and performing sensitivity analyses over certain assumptions to assess
the impact on the recoverable amounts. We tested the completeness, accuracy, and
relevance of underlying data used in the Company’s models.
We assessed the estimated quantities of mineralization and operating and capital
cost estimates that form the basis of cash flow estimates by comparing to information
developed by management’s specialists. We involved our mining specialists in
obtaining an understanding of the procedures performed by management’s
specialists to estimate and characterize known mineralization, and to determine the
extent of mineralization for which value should be ascribed within the estimated
recoverable amount of cash generating units. We also involved our mining specialists
in evaluating the methods and assumptions employed by management’s specialists
to develop operating and capital cost inputs that form the basis of cash flow
estimates.
/s/ Ernst & Young LLP
Chartered Professional Accountants
Licensed Public Accountants
We have served as the Company’s auditor since 1983.
Toronto, Canada
March 22, 2024
MANAGEMENT’S DISCUSSION AND ANALYSIS AGNICO EAGLE
5
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of Agnico Eagle Mines Limited
Opinion on Internal Control over Financial Reporting
We have audited Agnico Eagle Mines Limited’s internal control over financial reporting as of December 31, 2023, based
on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (2013 framework) (the “COSO criteria”). In our opinion, Agnico Eagle Mines Limited (the
“Company”) maintained, in all material respects, effective internal control over financial reporting as of December 31,
2023, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2023 and 2022, and the related
consolidated statements of income, comprehensive income, equity and cash flows for the years then ended, and the
related notes and our report dated March 22, 2024 expressed an unqualified opinion thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s
Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the
applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was
maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed
risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
International Financial Reporting Standards as issued by the International Accounting Standards Board. A company’s
internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board, and that receipts and expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention
or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material
effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Chartered Professional Accountants
Licensed Public Accountants
Toronto, Canada
March 22, 2024
6
AGNICO EAGLE MANAGEMENT’S DISCUSSION AND ANALYSIS
AGNICO EAGLE MINES LIMITED
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, except share amounts)
As at
December 31,
2023
As at
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents
$
338,648
$
658,625
Trade receivables (Notes 6 and 19)
8,148
8,579
Inventories (Note 7)
1,418,941
1,209,075
Income taxes recoverable (Note 25)
27,602
35,054
Fair value of derivative financial instruments (Notes 6 and 21)
50,786
8,774
Other current assets (Note 8A)
347,027
259,952
Total current assets
2,191,152
2,180,059
Non-current assets:
Goodwill (Notes 23 and 24)
4,157,672
2,044,123
Property, plant and mine development (Notes 9 and 13)
21,221,905
18,459,400
Investments (Notes 6, 10 and 21)
345,257
332,742
Deferred income and mining tax asset (Note 25)
53,796
11,574
Other assets (Note 8B)
715,167
466,910
Total assets
$28,684,949
$23,494,808
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities (Note 11)
$
750,380
$
672,503
Share based liabilities (Notes 6 and 17)
24,316
15,148
Interest payable
14,226
16,496
Income taxes payable (Note 25)
81,222
4,187
Current portion of long-term debt (Note 14)
100,000
100,000
Reclamation provision (Note 12)
24,266
23,508
Lease obligations (Note 13)
46,394
36,466
Fair value of derivative financial instruments (Notes 6 and 21)
7,222
78,114
Total current liabilities
1,048,026
946,422
Non-current liabilities:
Long-term debt (Note 14)
1,743,086
1,242,070
Reclamation provision (Note 12)
1,049,238
878,328
Lease obligations (Note 13)
115,154
114,876
Share based liabilities (Notes 6 and 17)
11,153
17,277
Deferred income and mining tax liabilities (Note 25)
4,973,271
3,981,875
Other liabilities (Notes 5 and 15)
322,106
72,615
Total liabilities
9,262,034
7,253,463
EQUITY
Common shares (Note 16):
Outstanding – 497,970,524 common shares issued, less 671,083 shares held in trust
18,334,869
16,251,221
Stock options (Notes 16 and 17)
201,755
197,430
Contributed surplus
22,074
23,280
Retained earnings (deficit)
963,172
(201,580)
Other reserves (Note 18)
(98,955)
(29,006)
Total equity
19,422,915
16,241,345
Total liabilities and equity
$28,684,949
$23,494,808
Commitments and contingencies (Note 27)
On behalf of the Board:
Ammar Al-Joundi, Director
Jeffrey Parr, Director
See accompanying notes
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
7
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(thousands of United States dollars, except per share amounts)
Year Ended
December 31,
2023
2022
REVENUES
Revenues from mining operations (Note 19)
$ 6,626,909
$5,741,162
COSTS, INCOME AND EXPENSES
Production(i)
2,933,263
2,643,321
Exploration and corporate development
215,781
271,117
Amortization of property, plant and mine development (Note 9)
1,491,771
1,094,691
General and administrative
208,451
220,861
Finance costs (Note 14)
130,087
82,935
(Gain) loss on derivative financial instruments (Note 21)
(68,432)
90,692
Impairment loss (Note 24)
787,000
55,000
Foreign currency translation gain
(328)
(16,081)
Care and maintenance
47,392
41,895
Revaluation gain (Note 5)
(1,543,414)
–
Other expenses (Note 22)
66,269
141,308
Income before income and mining taxes
2,359,069
1,115,423
Income and mining taxes expense (Note 25)
417,762
445,174
Net income for the year
$ 1,941,307
$ 670,249
Net income per share – basic (Note 16)
$
3.97
$
1.53
Net income per share – diluted (Note 16)
$
3.95
$
1.53
Cash dividends declared per common share
$
1.60
$
1.60
Note:
(i)
Exclusive of amortization, which is shown separately.
See accompanying notes
8
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(thousands of United States dollars)
Year Ended
December 31,
2023
2022
Net income for the year
$1,941,307
$670,249
Other comprehensive income:
Items that may be subsequently reclassified to net income:
Derivative financial instruments (Note 18):
Reclassified from the cash flow hedge reserve to net income
1,176
1,176
Income tax impact
–
1,125
1,176
2,301
Items that will not be subsequently reclassified to net income:
Pension benefit obligations:
Remeasurement gain (loss) on pension benefit obligations (Note 15)
1,641
(194)
Income tax impact
166
230
Equity securities (Note 18):
Net change in fair value of equity securities
(73,865)
(95,457)
Income tax impact
695
9,874
(71,363)
(85,547)
Other comprehensive loss for the year
(70,187)
(83,246)
Comprehensive income for the year
$1,871,120
$587,003
See accompanying notes
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
9
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF EQUITY
(thousands of United States dollars, except share and per share amounts)
Common Shares
Outstanding
Shares
Amount
Stock
Options
Contributed
Surplus
Retained
Earnings
(Deficit)
Other
Reserves
Total
Equity
Balance at December 31, 2021
245,001,857
$ 5,863,512
$191,112
$ 37,254
$ (146,383)
$ 54,276
$ 5,999,771
Net income
–
–
–
–
670,249
–
670,249
Other comprehensive income (loss)
–
–
–
–
36
(83,282)
(83,246)
Total comprehensive income (loss)
–
–
–
–
670,285
(83,282)
587,003
Transactions with owners:
Shares issued under employee stock option plan (Notes 16 and 17A)
944,989
51,310
(9,465)
–
–
–
41,845
Shares issued on acquisition of Kirkland Lake Gold Ltd.
(“Kirkland”), net of share issuance costs (Note 5)
209,274,263
10,268,160
–
–
–
–
10,268,160
Stock options (Notes 16 and 17A)
–
–
15,783
–
–
–
15,783
Shares issued under incentive share purchase plan (Note 17B)
615,069
30,285
–
–
–
–
30,285
Shares issued under dividend reinvestment plan
2,459,599
117,252
–
–
–
–
117,252
Share repurchases (Note 16)
(1,569,620)
(55,926)
–
(13,974)
–
–
(69,900)
Dividends declared ($1.60 per share)
–
–
–
–
(725,482)
–
(725,482)
Restricted Share Unit plan, Performance Share Unit plan,
and Long Term Incentive Plan (Notes 16 and 17C, D)
(260,861)
(23,372)
–
–
–
–
(23,372)
Balance at December 31, 2022
456,465,296
$16,251,221
$197,430
$ 23,280
$ (201,580)
$(29,006) $16,241,345
Net income
–
–
–
–
1,941,307
–
1,941,307
Other comprehensive income (loss)
–
–
–
–
1,807
(71,994)
(70,187)
Total comprehensive income (loss)
–
–
–
–
1,943,114
(71,994)
1,871,120
Transfer of loss on disposal of equity securities to deficit (Note 10)
–
–
–
–
(2,045)
2,045
–
Transactions with owners:
Shares issued under employee stock option plan (Notes 16 and 17A)
940,921
48,155
(7,778)
–
–
–
40,377
Shares issued pursuant to Yamana Transaction (Note 5)
36,177,931
1,858,219
–
–
–
–
1,858,219
Stock options (Notes 16 and 17A)
–
–
12,103
–
–
–
12,103
Shares issued under incentive share purchase plan (Note 17B)
885,842
44,818
–
–
–
–
44,818
Shares issued under dividend reinvestment plan
2,905,726
137,737
–
–
–
–
137,737
Share repurchases (Note 16)
(100,000)
(3,569)
–
(1,206)
–
–
(4,775)
Dividends declared ($1.60 per share)
–
–
–
–
(776,317)
–
(776,317)
Restricted Share Unit plan, Performance Share Unit plan, and
Long Term Incentive Plan (Notes 16 and 17C, D)
23,725
(1,712)
–
–
–
–
(1,712)
Balance at December 31, 2023
497,299,441
$18,334,869
$201,755
$ 22,074
$ 963,172
$(98,955) $19,422,915
See accompanying notes
10
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars)
Year Ended
December 31,
2023
2022
OPERATING ACTIVITIES
Net income for the year
$ 1,941,307
$
670,249
Add (deduct) adjusting items:
Amortization of property, plant and mine development (Note 9)
1,491,771
1,094,691
Revaluation gain (Note 5)
(1,543,414)
–
Deferred income and mining taxes (Note 25)
52,041
168,098
Unrealized (gain) loss on currency and commodity derivatives (Note 21)
(112,904)
59,556
Unrealized loss on warrants (Note 21)
11,198
9,820
Stock-based compensation (Note 17)
71,553
48,570
Impairment loss (Note 24)
787,000
55,000
Foreign currency translation gain
(328)
(16,081)
Other
49,734
25,965
Changes in non-cash working capital balances:
Trade receivables
7,458
12,110
Income taxes
103,850
(35,010)
Inventories
(169,168)
(46,236)
Other current assets
(88,389)
(10,756)
Accounts payable and accrued liabilities
2,778
59,460
Interest payable
(2,925)
1,200
Cash provided by operating activities
2,601,562
2,096,636
INVESTING ACTIVITIES
Additions to property, plant and mine development (Note 9)
(1,654,129)
(1,538,237)
Yamana Transaction, net of cash and cash equivalents (Note 5)
(1,000,617)
–
Contributions for acquisition of mineral assets (Note 5)
(10,950)
–
Cash and cash equivalents acquired in Kirkland acquisition (Note 5)
–
838,732
Purchases of equity securities and other investments
(104,738)
(47,364)
Proceeds from loan repayment
–
40,000
Other investing activities
9,651
(3,589)
Cash used in investing activities
(2,760,783)
(710,458)
FINANCING ACTIVITIES
Proceeds from Credit Facility (Note 14)
1,300,000
100,000
Repayment of Credit Facility (Note 14)
(1,300,000)
(100,000)
Proceeds from Term Loan Facility, net of financing costs (Note 14)
598,958
–
Repayment of Senior Notes (Note 14)
(100,000)
(225,000)
Repayment of lease obligations
(47,589)
(33,701)
Dividends paid
(638,642)
(608,307)
Repurchase of common shares (Notes 16 and 17)
(47,003)
(109,955)
Proceeds on exercise of stock options (Note 17A)
40,377
41,845
Common shares issued (Note 16)
29,941
20,265
Cash used in financing activities
(163,958)
(914,853)
Effect of exchange rate changes on cash and cash equivalents
3,202
1,514
Net (decrease) increase in cash and cash equivalents during the year
(319,977)
472,839
Cash and cash equivalents, beginning of year
658,625
185,786
Cash and cash equivalents, end of year
$
338,648
$
658,625
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid
$
104,845
$
67,510
Income and mining taxes paid
$
290,525
$
316,743
See accompanying notes
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
11
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
1.
CORPORATE INFORMATION
Agnico Eagle Mines Limited (“Agnico Eagle” or the “Company”) is principally engaged in the production and sale of gold,
as well as related activities such as exploration and mine development. The Company’s mining operations are located in
Canada, Australia, Finland and Mexico and the Company has exploration activities in Canada, Europe, Latin America,
Australia and the United States. Agnico Eagle is a public company incorporated under the laws of the Province of Ontario,
Canada with its head and registered office located at 145 King Street East, Suite 400, Toronto, Ontario, M5C 2Y7. The
Company’s common shares are listed on the Toronto Stock Exchange and the New York Stock Exchange. Agnico Eagle
sells its gold production into the world market.
2.
BASIS OF PRESENTATION
A)
Statement of Compliance
The accompanying consolidated financial statements of Agnico Eagle have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board
(“IASB”).
These consolidated financial statements were authorized for issuance by the Board of Directors of the Company
(the “Board”) on March 22, 2024.
B)
Basis of Presentation
Overview
These consolidated financial statements were prepared on a going concern basis under the historical cost
method except for certain financial assets and liabilities which are measured at fair value. The consolidated
financial statements are presented in US dollars and all values are rounded to the nearest thousand, except
where otherwise indicated.
Subsidiaries
These consolidated financial statements include the accounts of Agnico Eagle and its consolidated subsidiaries.
All intercompany balances, transactions, income and expenses and gains or losses have been eliminated on
consolidation. Subsidiaries are consolidated where Agnico Eagle has the ability to exercise control. Control of an
investee exists when Agnico Eagle is exposed to variable returns from the Company’s involvement with the
investee and has the ability to affect those returns through its power over the investee. The Company reassesses
whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more
of the elements of control.
Joint Arrangements
A joint arrangement is defined as an arrangement in which two or more parties have joint control and is classified
as either a joint operation or a joint venture. A joint operation is a joint arrangement whereby the parties have
joint control of the arrangement and have rights to the assets and obligations for the liabilities relating to the
arrangement. These consolidated financial statements include the Company’s interests in the assets, liabilities,
revenues and expenses of joint operations from the date that joint control commenced. Agnico Eagle’s 50%
interest in each of Canadian Malartic Corporation (“CMC”) and Canadian Malartic GP (the “Partnership”), the
general partnership that held the Canadian Malartic complex located in Quebec, were accounted for as a joint
operation until the remaining 50% was acquired on March 31, 2023 (Note 5).
On April 6, 2023, Agnico and Teck Resources Limited (“Teck”) entered into a joint venture shareholders
agreement in respect of the San Nicolás copper-zinc development project. The agreement provides that Agnico,
through a wholly-owned Mexican subsidiary, will subscribe for a 50% interest in Minas de San Nicolás, S.A.P.I.
de C.V. (“MSN”) for $580.0 million, to be contributed as study and development costs are incurred by MSN,
12
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
2.
BASIS OF PRESENTATION (Continued)
though for governance purposes, the agreement treats Agnico Eagle as a 50% shareholder of MSN regardless of
the number of shares that have been issued to Agnico Eagle or its affiliates, except in certain circumstances of
default. The Company accounts for its 50% interest in the joint venture as a joint operation (Note 5).
3.
MATERIAL ACCOUNTING POLICIES
A)
Business Combinations
In a business combination, the acquisition method of accounting is used, whereby the purchase consideration
is allocated to the fair value of identifiable assets acquired and liabilities assumed at the date of acquisition.
Where the cost of the acquisition exceeds the fair values of the identifiable net assets acquired, the difference is
recorded as goodwill. Preliminary fair values allocated at a reporting date are finalized as soon as the relevant
information is available, within a period not to exceed twelve months from the acquisition date with retroactive
restatement of the impact of adjustments to those preliminary fair values effective as at the acquisition date.
Acquisition related costs are expensed as incurred.
B)
Foreign Currency Translation
The functional currency of the Company, for each subsidiary and for joint arrangements, is the currency of the
primary economic environment in which it operates. The functional currency of all of the Company’s operations
is the US dollar.
Once the Company determines the functional currency of an entity, it is not changed unless there is a significant
change in the relevant underlying transactions, events and circumstances.
At the end of each reporting period, the Company translates foreign currency balances as follows:
• monetary items are translated at the closing rate in effect at the consolidated balance sheet date;
• non-monetary items that are measured in terms of historical cost are translated using the exchange rate at the
date of the transaction. Items measured at fair value are translated at the exchange rate in effect at the date
the fair value was measured; and
• revenue and expense items are translated using the average exchange rate during the period.
C)
Cash and Cash Equivalents
The Company’s cash and cash equivalents include cash on hand and short-term investments in money market
instruments with remaining maturities of three months or less at the date of purchase. The Company places its
cash and cash equivalents and short-term investments in high quality securities issued by government agencies,
financial institutions and major corporations and attempts to limit the amount of credit exposure by diversifying
its holdings. Cash and cash equivalents are classified as financial assets measured at amortized cost.
D)
Inventories
Inventories consist of ore stockpiles, concentrates, dore bars and supplies. Inventories are carried at the lower of
cost and net realizable value (“NRV”). Cost is determined using the weighted average basis and includes all
costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present
location and condition. Cost of inventories include direct costs of materials and labour related directly to mining
and processing activities, including production phase stripping costs, amortization of property, plant and mine
development directly involved in the related mining and production process, amortization of any stripping costs
previously capitalized and directly attributable overhead costs. When interruptions to production occur, an
adjustment is made to the costs included in inventories, such that they reflect normal capacity. Abnormal costs
are expensed in the period they are incurred.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
13
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
The current portion of ore stockpiles, ore on leach pads and inventories is determined based on the amounts
expected to be processed within the next twelve months. Ore stockpiles, ore on leach pads and inventories not
expected to be processed or used within the next twelve months are classified as long-term.
NRV is estimated by calculating the net selling price less costs to be incurred in converting the relevant
inventories to saleable product and delivering it to a customer. Costs to complete are based on management’s
best estimate as at the consolidated balance sheet date. An NRV impairment may be reversed in a subsequent
period if the circumstances that triggered the impairment no longer exist.
E)
Financial Instruments
The Company’s financial assets and liabilities (financial instruments) include cash and cash equivalents, trade
receivables, loans receivable, equity securities, share purchase warrants, accounts payable and accrued
liabilities, long-term debt and derivative financial instruments. Financial instruments are recorded at fair value
and classified at initial recognition and subsequently measured at amortized cost, fair value through other
comprehensive income (“FVOCI”), or fair value through profit or loss (“FVPL”). Subsequent to initial recognition,
financial instruments classified as cash and cash equivalents, loans receivable, accounts payable and accrued
liabilities and long-term debt are measured at amortized cost using the effective interest method. Other financial
instruments are recorded at fair value subsequent to initial recognition.
Equity Securities
The Company’s equity securities consist primarily of investments in common shares of entities in the mining
industry recorded using trade date accounting. On initial recognition of an equity investment, the Company may
irrevocably elect to measure the investment at FVOCI where changes in the fair value of equity securities are
permanently recognized in other comprehensive income and will not be reclassified to profit or loss. The realized
gain or loss is reclassified from other comprehensive income to retained earnings when the asset is de-
recognized. The election is made on an investment-by-investment basis.
Derivative Instruments and Hedge Accounting
The Company uses derivative financial instruments (primarily option and forward contracts) to manage exposure
to fluctuations in by-product metal prices, interest rates and foreign currency exchange rates and may use such
means to manage exposure to certain input costs.
The Company recognizes all derivative financial instruments in the consolidated financial statements at fair
value and they are classified based on contractual maturity. Derivative instruments are classified as either hedges
of highly probable forecast transactions (cash flow hedges) or non-hedge derivatives. Derivatives designated as
a cash flow hedge that are expected to be highly effective in achieving offsetting changes in cash flows are
assessed on an ongoing basis to determine that they have actually been highly effective throughout the financial
reporting periods for which they were designated. Derivative assets and derivative liabilities are shown separately
in the consolidated balance sheets unless there is a legal right to offset and intent to settle on a net basis.
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is
recognized in the gain or loss on derivative financial instruments line item in the consolidated statements of
income. Amounts deferred in other comprehensive income are reclassified when the hedged transaction has
occurred.
Derivative instruments that do not qualify for hedge accounting are recorded at fair value at the balance sheet
date, with changes in fair value recognized in the gain or loss on derivative financial instruments line item in the
consolidated statements of income (FVPL).
14
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
The Company also holds share purchase warrants of certain publicly traded entities where it has an investment
in equity securities. Share purchase warrants are accounted for as derivative financial instruments and presented
as part of investments in the consolidated balance sheets.
Expected Credit Loss Impairment Model
An assessment of the expected credit loss related to a financial asset is undertaken upon initial recognition and
at the end of each reporting period based on the credit quality of the debtor and any changes that impact the risk
of impairment.
F)
Goodwill
Goodwill is recognized in a business combination if the cost of the acquisition exceeds the fair values of the
identifiable net assets acquired. Goodwill is then allocated to the cash generating unit (“CGU”) or group of CGUs
that are expected to benefit from the synergies of the combination. A CGU is the smallest identifiable group of
assets that generates cash inflows which are largely independent of the cash inflows from other assets or groups
of assets.
The Company performs goodwill impairment tests on an annual basis as at December 31 each year. In addition,
the Company assesses for indicators of impairment at each reporting period-end and, if an indicator of
impairment is identified, goodwill is tested for impairment at that time. If the carrying value of the CGU or group
of CGUs to which goodwill is assigned exceeds its recoverable amount, an impairment loss is recognized.
Goodwill impairment losses are recorded in the consolidated statements of income and they are not subsequently
reversed.
The recoverable amount of a CGU or group of CGUs is measured as the higher of value in use and fair value less
costs of disposal.
G)
Mining Properties, Plant and Equipment and Mine Development Costs
Mining Properties
The cost of mining properties includes the fair value attributable to proven and probable mineral reserves and
mineral resources acquired in a business combination or asset acquisition, underground mine development
costs, deferred stripping, capitalized exploration and evaluation costs and capitalized borrowing costs.
Significant payments related to the acquisition of land and mineral rights are capitalized as mining properties at
cost. If a mineable ore body is discovered, such costs are amortized to income when commercial production
commences, using the units-of-production method, based on estimated proven and probable mineral reserves
and the mineral resources included in the current life of mine plan. If no mineable ore body is discovered, such
costs are expensed in the period in which it is determined that the property has no future economic value. Cost
components of a specific project that are included in the capital cost of the asset include salaries and wages
directly attributable to the project, supplies and materials used in the project and incremental overhead costs
that can be directly attributable to the project.
Assets under construction are not amortized until the earlier of the end of the construction period or once
commercial production is achieved. Upon achieving the production stage, the capitalized construction costs are
transferred to the appropriate category within property, plant and mine development. The estimated fair value
attributed to certain mineral resources at the time of acquisition is not subject to depreciation until the resources
are considered in use, which is the point at which they are incorporated into the current LOM plan.
Plant and Equipment
Expenditures for new facilities and improvements that can extend the useful lives of existing facilities are
capitalized as plant and equipment at cost. The cost of an item of plant and equipment includes: its purchase
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
15
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates;
any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of
operating in the manner intended by management; and the estimate of the costs of dismantling and removing
the item and restoring the site on which it is located other than costs that arise as a consequence of having used
the item to produce inventories during the period.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits
are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the
consolidated statements of income when the asset is derecognized.
Amortization of an asset begins when the asset is in the location and condition necessary for it to operate in the
manner intended by management. Amortization ceases at the earlier of the date the asset is classified as held for
sale or the date the asset is derecognized. Assets under construction are not amortized until the earlier of the
end of the construction period or once commercial production is achieved. Amortization is charged according to
either the units-of-production method or on a straight line basis, according to the pattern in which the asset’s
future economic benefits are expected to be consumed. Amortization does not cease when an asset becomes
idle or is retired from active use unless the asset is fully amortized; however, under the units-of-production
method of amortization, the amortization charge can be zero when there is no production. The amortization
method applied to an asset is reviewed at least annually.
Useful lives of property, plant and equipment are based on the lesser of the estimated mine lives as determined
by proven and probable mineral reserves and the mineral resources included in the current life of mine plan and
the estimated useful life of the asset. Remaining mine lives at December 31, 2023 range from an estimated one
to 29 years.
The following table sets out the useful lives of certain assets:
Useful Life
Buildings
5 to 29 years
Leasehold Improvements
15 years
Software and IT Equipment
1 to 10 years
Furniture and Office Equipment
3 to 5 years
Machinery and Equipment
1 to 29 years
Mine Development Costs
Mine development costs incurred after the commencement of commercial production are capitalized when they
are expected to have a future economic benefit. Activities that are typically capitalized include costs incurred to
build shafts, drifts, ramps and access corridors which enables the Company to extract ore underground.
The Company records amortization on underground mine development costs on a units-of-production basis
based on the estimated tonnage of proven and probable mineral reserves and the mineral resources included in
the current life of mine plan of the identified component of the ore body. The units-of-production method defines
the denominator as the total tonnage of proven and probable mineral reserves and the mineral resources
included in the current life of mine plan.
16
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
Deferred Stripping
In open pit mining operations, it is necessary to remove overburden and other waste materials to access ore from
which minerals can be extracted economically. The process of mining overburden and waste materials is referred
to as stripping.
During the development stage of the mine, stripping costs are capitalized as part of the cost of building,
developing and constructing the mine and are amortized once the mine has entered the production stage.
During the production stage of a mine, stripping costs are recorded as a part of the cost of inventories unless
these costs are expected to provide a future economic benefit and, in such cases, are capitalized to property,
plant and mine development.
Production stage stripping costs provide a future economic benefit when:
• It is probable that the future economic benefit (e.g., improved access to the ore body) associated with the
stripping activity will flow to the Company;
• The Company can identify the component of the ore body for which access has been improved; and
• The costs relating to the stripping activity associated with that component can be measured reliably.
Capitalized production stage stripping costs are amortized over the expected useful life of the identified
component of the ore body that becomes more accessible as a result of the stripping activity.
Borrowing Costs
Borrowing costs are capitalized to qualifying assets. Qualifying assets are assets that take a substantial period of
time to prepare for the Company’s intended use, which includes projects that are in the exploration and
evaluation, development or construction stages.
Borrowing costs attributable to the acquisition, construction or production of qualifying assets are added to the
cost of those assets until such time as the assets are substantially ready for their intended use. All other borrowing
costs are recognized as finance costs in the period in which they are incurred. Where the funds used to finance
a qualifying asset form part of general borrowings, the amount capitalized is calculated using a weighted average
of rates applicable to the relevant borrowings during the period.
H)
Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract contains
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration. The Company assesses whether:
• The contract involves the use of an explicitly or implicitly identified asset;
• The Company has the right to obtain substantially all of the economic benefits from the use of the asset
throughout the contract term; and
• The Company has the right to direct the use of the asset.
The Company recognizes a right-of-use asset and a lease obligation at the commencement date of the lease (i.e.
the date the underlying asset is available for use).
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and
adjusted for any remeasurement of lease obligations. The cost of right-of-use assets includes the initial amount
of lease obligations recognized, initial direct costs incurred and lease payments made at or before the
commencement date less any lease incentives received.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
17
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term,
the right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life and
the lease term. Right-of-use assets are subject to impairment.
At the commencement date of the lease, the Company recognizes lease obligations measured at the present
value of lease payments to be made over the lease term, discounted using the interest rate implicit in the lease
or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. The lease payments
include fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be
paid under residual value guarantees and the exercise price of a purchase option reasonably certain to be
exercised by the Company.
After the commencement date, the amount of lease obligations is increased to reflect the accretion of interest
and reduced for the lease payments made. In addition, the carrying amount of lease obligations is remeasured
if there is a modification, a change in the lease term, a change in the fixed lease payments, changes based on an
index or rate or a change in the assessment to purchase the underlying asset.
The Company presents right-of-use assets in the property, plant and mine development line item on the
consolidated balance sheets and lease obligations in the lease obligations line item on the consolidated balance
sheets.
The Company has elected not to recognize right-of-use assets and lease obligations for leases that have a lease
term of 12 months or less and do not contain a purchase option, for leases related to low value assets, or for
leases with variable lease payments. Payments on short-term leases, leases of low value assets and leases with
variable payment amounts are recognized as an expense in the consolidated statements of income.
I)
Development Stage Expenditures
Development stage expenditures are costs incurred to obtain access to proven and probable mineral reserves or
mineral resources and provide facilities for extracting, treating, gathering, transporting and storing the minerals.
The development stage of a mine commences when the technical feasibility and commercial viability of extracting
the mineral resource has been determined. Costs that are directly attributable to mine development are
capitalized as property, plant and mine development to the extent that they are necessary to bring the property
to commercial production.
Abnormal costs are expensed as incurred. Indirect costs are included only if they can be directly attributed to
the area of interest. General and administrative costs are capitalized as part of the development expenditures
when the costs are directly attributed to a specific mining development project.
Commercial Production
A mine construction project is considered to have entered the production stage when the mine construction
assets are available for use. In determining whether mine construction assets are considered available for use,
the criteria considered include, but are not limited to, the following:
• completion of a reasonable period of testing mine plant and equipment;
• ability to produce minerals in saleable form (within specifications); and
• ability to sustain ongoing production of minerals.
When a mine construction project moves into the production stage, amortization commences, the capitalization
of certain mine construction costs ceases and expenditures are either capitalized to inventories or expensed as
incurred. Exceptions include costs incurred for additions or improvements to property, plant and mine
development and open-pit stripping activities.
18
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
J)
Impairment and Impairment Reversal of Long-lived Assets
At the end of each reporting period the Company assesses whether there is any indication that long-lived assets
other than goodwill may be impaired. If an indicator of impairment exists, the recoverable amount of the asset is
calculated in order to determine if any impairment loss is required. If it is not possible to estimate the recoverable
amount of the individual asset, assets are grouped at the CGU level for the purpose of assessing the recoverable
amount. An impairment loss is recognized for any excess of the carrying amount of the CGU over its recoverable
amount. If the CGU includes goodwill, the impairment loss related to a CGU is first allocated to goodwill and the
remaining loss is allocated to the remaining long-lived assets of the CGU based on their carrying amounts.
Impairment losses are recorded in the consolidated statements of income in the period in which they occur.
Any impairment charge that is taken on a long-lived asset other than goodwill is reversed if there are subsequent
changes in the estimates or significant assumptions that were used to recognize the impairment loss that result
in an increase in the recoverable amount of the CGU. If an indicator of impairment reversal has been identified,
the recoverable amount of the asset is calculated in order to determine if any impairment reversal is required. A
recovery is recognized to the extent the recoverable amount of the asset exceeds its carrying amount. The
amount of the reversal is limited to the difference between the current carrying amount and the amount which
would have been the carrying amount had the earlier impairment not been recognized and amortization of that
carrying amount had continued. The impairment reversal is allocated on a pro-rata basis to the existing long-
lived assets of the CGU based on their carrying amounts. Impairment reversals are recorded in the consolidated
statements of income in the period in which they occur.
K)
Debt
Debt is initially recorded at fair value, net of financing costs incurred. Debt is subsequently measured at amortized
cost. Any difference between the amounts received and the redemption value of the debt is recognized in the
consolidated statements of income over the period to maturity using the effective interest rate method.
L)
Reclamation Provisions
Asset retirement obligations (“AROs”) arise from the acquisition, development and construction of mining
properties and plant and equipment due to government controls and regulations that protect the environment on
the closure and reclamation of mining properties. The major parts of the carrying amount of AROs relate to
tailings and heap leach pad closure and rehabilitation, demolition of buildings and mine facilities, ongoing water
treatment and ongoing care and maintenance of closed mines. The Company recognizes an ARO at the time the
environmental disturbance occurs or a constructive obligation is determined to exist based on the Company’s
best estimate of the timing and amount of expected cash flows expected to be incurred. When the ARO provision
is recognized, the corresponding cost is capitalized to the related item of property, plant and mine development.
Reclamation provisions that result from disturbance in the land to extract ore in the current period is included in
the cost of inventories.
The timing of the actual environmental remediation expenditures is dependent on a number of factors such as
the life and nature of the asset, the operating licence conditions and the environment in which the mine operates.
Reclamation provisions are measured at the expected value of future cash flows discounted to their present
value using a risk-free interest rate. AROs are adjusted each period to reflect the passage of time (accretion).
Accretion expense is recorded in finance costs each period. Upon settlement of an ARO, the Company records
a gain or loss if the actual cost differs from the carrying amount of the ARO. Settlement gains or losses are
recorded in the consolidated statements of income.
Expected cash flows are updated to reflect changes in facts and circumstances. The principal factors that can
cause expected cash flows to change are the construction of new processing facilities, changes in the quantities
of material in mineral reserves and mineral resources and a corresponding change in the life of mine plan,
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
19
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
changing ore characteristics that impact required environmental protection measures and related costs, changes
in water quality that impact the extent of water treatment required and changes in laws and regulations governing
the protection of the environment.
Each reporting period, provisions for AROs are remeasured to reflect any changes to significant assumptions,
including the amount and timing of expected cash flows and risk-free interest rates. Changes to the reclamation
provision resulting from changes in estimate are added to or deducted from the cost of the related asset, except
where the reduction of the reclamation provision exceeds the carrying value of the related assets in which case
the asset is reduced to nil and the remaining adjustment is recognized in the consolidated statements of income.
Environmental remediation liabilities (“ERLs”) are differentiated from AROs in that ERLs do not arise from
environmental contamination in the normal operation of a long-lived asset or from a legal or constructive
obligation to treat environmental contamination resulting from the acquisition, construction or development of a
long-lived asset. The Company is required to recognize a liability for obligations associated with ERLs arising
from past acts. ERLs are measured by discounting the expected related cash flows using a risk-free interest rate.
The Company prepares estimates of the timing and amount of expected cash flows when an ERL is incurred.
Each reporting period, the Company assesses cost estimates and other assumptions used in the valuation of
ERLs to reflect events, changes in circumstances and new information available. Changes in these cost estimates
and assumptions have a corresponding impact on the value of the ERL. Any change in the value of ERLs results
in a corresponding charge or credit to the consolidated statements of income. Upon settlement of an ERL, the
Company records a gain or loss if the actual cost differs from the carrying amount of the ERL in the consolidated
statements of income.
M)
Post-employment Benefits
In Canada, the Company maintains a defined contribution plan covering all of its employees (the “Basic Plan”).
The Basic Plan is funded by Company contributions based on a percentage of income for services rendered by
employees. In addition, the Company has a supplemental plan for designated executives at the level of Vice-
President or above (the “Supplemental Plan”). Under the Supplemental Plan, an additional 10.0% of the
designated executives’ income is contributed by the Company.
The Company provides a defined benefit retirement program (the “Retirement Program”) for certain eligible
employees that provides a lump-sum payment upon retirement. The payment is based on age and length of
service at retirement. An eligible employee is entitled to a benefit if they have completed more than 10 years as
a permanent employee and have attained a minimum age of 57. The Retirement Program is not funded.
The Company also provides a non-registered supplementary executive retirement defined benefit plan for certain
current and former senior officers (the “Executives Plan”). The Executives Plan benefits are generally based on
the employee’s years of service and level of compensation. Pension expense related to the Executives Plan is the
net of the cost of benefits provided (including the cost of any benefits provided for past service), the net interest
cost on the net defined liability/asset and the effects of settlements and curtailments related to special events.
Pension fund assets are measured at their current fair values. The costs of pension plan improvements are
recognized immediately in expense when they occur. Remeasurements of the net defined benefit liability are
recognized immediately in other comprehensive income and are subsequently transferred to retained earnings.
The Company provides three defined benefit retirement plans for certain eligible employees in Mexico (the
“Mexico Plans”) that provide a lump-sum payment upon retirement. The payment is based on age and length of
service at retirement. Eligible employees are entitled to a benefit if they have completed 15 years of service as a
permanent employee and are 60 years of age or older. The Mexico Plans are not funded.
Defined Contribution Plan
The Company recognizes the contributions payable to a defined contribution plan in exchange for services
rendered by employees as an expense, unless another policy requires or permits the inclusion of the contribution
20
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
in the cost of an asset. After deducting contributions already paid, a liability is recorded throughout each period
to reflect unpaid but earned contributions. If the contribution paid exceeds the contribution due for the service
before the end of the reporting period, the Company recognizes that excess as an asset to the extent that the
prepayment will lead to a reduction in future payments or a cash refund.
Defined Benefit Plan
Plan assets are measured at their fair value at the consolidated balance sheet date and are deducted from the
present value of plan liabilities to arrive at a net defined benefit liability/asset. The defined benefit obligation
reflects the expected future payments required to settle the obligation resulting from employee service in the
current and prior periods.
Current service cost represents the actuarially calculated present value of the benefits earned by the active
employees in each period and reflects the economic cost for each period based on current market conditions.
The current service cost is based on the most recent actuarial valuation. The net interest on the net defined
benefit liability/asset is the change during the period in the defined benefit liability/asset that arises from the
passage of time.
Past service cost represents the change in the present value of the defined benefit obligation resulting from a
plan amendment or curtailment. Past service costs from plan amendments that increase or decrease vested or
unvested benefits are recognized immediately in net income at the earlier of when the related plan amendment
occurs or when the entity recognizes related restructuring costs or termination benefits.
Gains or losses on plan settlements are measured as the difference in the present value of the defined benefit
obligation and settlement price. This results in a gain or loss being recognized when the benefit obligation
settles. Actuarial gains and losses are recorded on the consolidated balance sheets as part of the benefit plan’s
funded status. Gains and losses are recognized immediately in other comprehensive income and are
subsequently transferred to retained earnings and are not recognized in net income.
N)
Contingent Liabilities and Other Provisions
Provisions are recognized when a present obligation exists (legal or constructive), as a result of a past event, for
which it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate
can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the
expenditure required to settle the obligation at the consolidated balance sheet date, measured using the expected
cash flows discounted for the time value of money. The increase in provision due to the passage of time
(accretion) is recognized as a finance cost in the consolidated statements of income.
Contingent liabilities are possible obligations whose existence will be confirmed only on the occurrence or non-
occurrence of uncertain future events outside the entity’s control, or present obligations that are not recognized
because it is not probable that an outflow of economic benefits would be required to settle the obligation or the
amount cannot be measured reliably. Contingent liabilities are not recognized but are disclosed and described in
the notes to the consolidated financial statements, including an estimate of their potential financial effect and
uncertainties relating to the amount or timing of any outflow, unless the possibility of settlement is remote. In
assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted
claims that may result in such proceedings, the Company, with assistance from its legal counsel, evaluates the
perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of
relief sought or expected to be sought.
O)
Stock-based Compensation
The Company offers stock-based compensation awards (the employee stock option plan, incentive share
purchase plan, restricted share unit plan and performance share unit plan) to certain employees, officers and
directors of the Company.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
21
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
Employee Stock Option Plan (“ESOP”)
The Company’s ESOP provides for the granting of options to directors, officers, employees and service providers
to purchase common shares. Options have exercise prices equal to the market price on the day prior to the date
of grant. The fair value of these options is recognized in the consolidated statements of income or in the
consolidated balance sheets if capitalized as part of property, plant and mine development over the applicable
vesting period as a compensation cost. Any consideration paid by employees on exercise of options or purchase
of common shares is credited to share capital.
Fair value is determined using the Black-Scholes option valuation model, which requires the Company to
estimate the expected volatility of the Company’s share price and the expected life of the stock options.
Limitations with existing option valuation models and the inherent difficulties associated with estimating these
variables create difficulties in determining a reliable single measure of the fair value of stock option grants. The
cost is recorded over the vesting period of the award to the same expense category as the award recipient’s
payroll costs and the corresponding entry is recorded in equity. Equity-settled awards are not remeasured
subsequent to the initial grant date. The dilutive impact of stock option grants is factored into the Company’s
reported diluted net income per share. The stock option expense incorporates an expected forfeiture rate,
estimated based on expected employee turnover.
Incentive Share Purchase Plan (“ISPP”)
Under the ISPP, directors (excluding non-executive directors), officers and employees (the “Participants”) of the
Company may contribute up to 10.0% of their basic annual salaries and the Company contributes an amount
equal to 50.0% of each Participant’s contribution. All common shares subscribed for under the ISPP are issued
by the Company.
The Company records an expense equal to its cash contribution to the ISPP. No forfeiture rate is applied to the
amounts accrued. Where an employee leaves prior to the vesting date, any accrual for contributions by the
Company during the vesting period related to that employee is reversed.
Restricted Share Unit (“RSU”) Plan
The RSU plan is open to directors and certain employees, including senior executives, of the Company. Common
shares are purchased and held in a trust until the RSU has vested. The cost is recorded over the vesting period
of the award to the same expense category as the award recipient’s payroll costs. The cost of the RSUs is
recorded within equity until settled. Equity-settled awards are not remeasured subsequent to the initial grant
date.
Performance Share Unit (“PSU”) Plan
The PSU plan is open to senior executives of the Company. PSUs are subject to vesting requirements based on
specific performance measurements by the Company. PSUs awarded to eligible executives are settled in cash.
They are measured at fair value at the grant date. The fair value of the estimated number of PSUs awarded that
are expected to vest is recognized as share based compensation expense over the vesting period of the PSUs
with a corresponding amount recorded to share based liabilities until the liability is settled through a cash
payment. At each reporting date and on settlement, the share based liability is remeasured, with any changes in
fair value recorded as compensation expense.
P)
Revenue from Contracts with Customers
Gold and Silver
The Company sells gold and silver to customers in the form of bullion and dore bars.
22
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
The Company recognizes revenue from these sales when control of the gold or silver has transferred to the
customer. This is generally at the point in time when the gold or silver is credited to the metal account of the
customer. Once the gold or silver has been credited to the customer’s metal account, the customer has legal title
to, physical possession of, and the risks and rewards of ownership of the gold or silver; therefore, the customer
is able to direct the use of and obtain substantially all of the remaining benefits from the gold or silver.
Under certain contracts with customers, the transfer of control may occur when the gold or silver is in transit
from the mine to the refinery. At this point in time, the customer has legal title to and the risk and rewards of
ownership of the gold or silver; therefore, the customer is able to direct the use of and obtain substantially all of
the remaining benefits from the gold or silver.
Revenue is measured at the transaction price agreed under the contract. Payment of the transaction price is due
immediately when control of the gold or silver is transferred to the customer.
Generally, all of the gold and silver in the form of dore bars recovered in the Company’s milling process is sold in
the period in which it is produced.
Metal Concentrates
The Company sells concentrate from certain of its mines to third-party smelter customers. These concentrates
predominantly contain zinc and copper, along with quantities of gold and silver.
The Company recognizes revenue from these concentrate sales when control of the concentrate has transferred
to the customer, which is the point in time that the concentrate is delivered to the customer. Upon delivery, the
customer has legal title to, physical possession of, and the risks and rewards of ownership of the concentrate.
The customer is also committed to accept and pay for the concentrates once delivered; therefore, the customer
is able to direct the use of and obtain substantially all of the remaining benefits from the concentrate.
The final prices for metals contained in the concentrate are generally determined based on the prevailing spot
market metal prices on a specific future date, which is established as of the date the concentrate is delivered to
the customer. Upon transfer of control at delivery, the Company measures revenue under these contracts based
on forward prices at the time of delivery and the most recent determination of the quantity of contained metals
less smelting and refining charges charged by the customer. This reflects the best estimate of the transaction
price expected to be received at final settlement. A receivable is recognized for this amount and subsequently
measured at fair value to reflect variability associated with the embedded derivative for changes in the market
metal prices. These changes in the fair value of the receivable are adjusted through revenue from other sources
at each subsequent financial statement date.
Under certain contracts with customers, the sale of gold contained in copper concentrate occurs once the metal
has been processed into refined gold and is sold separately similar to the gold and silver dore bar terms described
above. The transaction price for the sale of gold contained in concentrate is determined based on the spot
market price upon delivery and provisional pricing does not apply.
Q)
Exploration and Evaluation Expenditures
Exploration and evaluation expenditures are the costs incurred in the initial search for mineral deposits with
economic potential or in the process of obtaining more information about existing mineral deposits. Exploration
expenditures typically include costs associated with prospecting, sampling, mapping, diamond drilling and other
work involved in searching for ore. Evaluation expenditures are the costs incurred to establish the technical and
commercial viability of developing mineral deposits identified through exploration activities or by acquisition.
Exploration and evaluation expenditures are expensed as incurred unless it can be demonstrated that the project
will generate future economic benefit. When it is determined that a project can generate future economic benefit
the costs are capitalized in the property, plant and mine development line item in the consolidated balance
sheets.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
23
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
The exploration and evaluation phase ends when the technical feasibility and commercial viability of extracting
the mineral is demonstrable.
R)
Net Income Per Share
Basic net income per share is calculated by dividing net income for a given period by the weighted average
number of common shares outstanding during that same period. Diluted net income per share reflects the
potential dilution that could occur if holders with rights to convert instruments to common shares exercise these
rights. The weighted average number of common shares used to determine diluted net income per share
includes an adjustment, using the treasury stock method, for stock options outstanding. Under the treasury
stock method:
• the exercise of options is assumed to occur at the beginning of the period (or date of issuance, if later);
• the proceeds from the exercise of options plus the future period compensation expense on options granted
are assumed to be used to purchase common shares at the average market price during the period; and
• the incremental number of common shares (the difference between the number of shares assumed issued
and the number of shares assumed purchased) is included in the denominator of the diluted net income per
share calculation.
S)
Income Taxes
Current and deferred tax expenses are recognized in the consolidated statements of income except to the extent
that they relate to a business combination, or to items recognized directly in equity or in other comprehensive
income.
Current tax expense is based on substantively enacted statutory tax rates and laws at the consolidated balance
sheet date.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the tax basis of such assets and liabilities measured using tax rates
and laws that are substantively enacted at the consolidated balance sheet date and effective for the reporting
period when the temporary differences are expected to reverse.
Deferred taxes are not recognized in the following circumstances:
• where a deferred tax liability arises from the initial recognition of goodwill;
• where a deferred tax asset or liability arises on the initial recognition of an asset or liability in a transaction
which is not a business combination and, at the time of the transaction, affects neither net income nor taxable
profits; and
• for temporary differences relating to investments in subsidiaries and jointly controlled entities to the extent that
the Company can control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognized for unused tax losses and tax credits carried forward and deductible
temporary differences to the extent that it is probable that future taxable profits will be available against which
they can be utilized except as noted above.
At each reporting period, previously unrecognized deferred tax assets are reassessed to determine whether it
has become probable that future taxable profits will allow the deferred tax assets to be recovered.
T)
Comparative Figures
Certain figures in the consolidated financial statements have been reclassified from statements previously
presented to conform to the presentation of these financial statements as at and for the year ended December 31,
2023.
24
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
3.
MATERIAL ACCOUNTING POLICIES (Continued)
Recently Adopted Accounting Pronouncement
Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2
The amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgments provide guidance and examples
to help entities apply materiality judgments to accounting policy disclosures. The amendments aim to help entities provide
accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’
accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities
apply the concept of materiality in making decisions about accounting policy disclosures.
The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement,
recognition or presentation of any items in the Company’s consolidated financial statements.
4.
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of these consolidated financial statements in conformity with IFRS requires management to make
judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and
accompanying notes. Management believes that the estimates used in the preparation of the consolidated financial
statements are reasonable; however, actual results may differ materially from these estimates. The key areas where
significant judgments, estimates and assumptions have been made are summarized below.
Impairment and Impairment Reversals
The Company evaluates each asset or CGU (excluding goodwill, which is assessed for impairment annually regardless of
indicators and is not eligible for impairment reversals) in each reporting period to determine if any indicators of impairment
or impairment reversal exist. The Company considers both external and internal sources of information for indications of
potential impairment of non-current assets or goodwill. When completing an impairment test, the Company calculates the
estimated recoverable amount of CGUs, which requires management to make estimates and assumptions with respect to
items such as future production levels, future operating and capital costs, long-term commodity prices, future foreign
exchange rates, discount rates, amounts of recoverable reserves, mineral resources and exploration potential and closure
and environmental remediation costs. These estimates and assumptions are subject to risk and uncertainty, particularly in
circumstances where there is limited operating history of the asset or CGU. Judgment is also required in determining the
appropriate valuation method for mineralization, ascribing anticipated economics to mineralization in cases where only
limited or no comprehensive economic study has been completed and selection of an appropriate NAV multiple. Therefore,
there is a possibility that changes in circumstances will have an impact on these projections, which may impact the
recoverable amount of assets or CGUs. Accordingly, it is possible that some or the entire carrying amount of the assets or
CGUs may be further impaired or the impairment charge reversed with the impact recognized in the consolidated
statements of income.
Mineral Reserve and Mineral Resource Estimates and Life of Mine Plans
Mineral reserves and mineral resources are estimates of the amount of ore that can be extracted from the Company’s
mining properties. The estimates are based on information compiled by “qualified persons” as defined under the Canadian
Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). Such
an analysis relating to the geological and technical data on the size, depth, shape and grade of the ore body and suitable
production techniques and recovery rates requires complex geological judgments to interpret the data. The estimation of
mineral reserves and mineral resources is based upon factors such as estimates of commodity prices, future capital
requirements and production costs, geological and metallurgical assumptions and judgments made in estimating the size
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
25
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
4.
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (Continued)
and grade of the ore body and foreign exchange rates. Estimates of the quantities of proven and probable mineral reserves
and mineral resources form the basis for our life of mine plans, which are used for several important business and
accounting purposes, including:
• The carrying value of the Company’s property, plant and mine development and goodwill may be affected due to
changes in estimated future cash flows;
• Amortization charges in the consolidated statements of income may change where such charges are determined
using the units-of-production method or where the useful life of the related assets change;
• Capitalized stripping costs recognized in the consolidated balance sheets as either part of mining properties or as
part of inventories or charged to income may change due to changes in the ratio of ore to waste extracted;
• The classification of the Company’s stockpiles as current or non-current may be affected due to changes in the
nature and size of the ore body and changes in life of mine plans;
• Reclamation provisions may change where changes to the mineral reserve and mineral resource estimates affect
expectations about when such activities will occur and the associated cost of these activities; and
• Mineral reserve and mineral resource estimates are used to calculate the estimated recoverable amounts of CGUs
for impairment tests of goodwill and non-current assets.
Reclamation Provisions
Environmental remediation costs will be incurred by the Company at the end of the operating life of the Company’s mining
properties. Management assesses its reclamation provision each reporting period and when new information becomes
available. The ultimate environmental remediation costs are uncertain and cost estimates can vary in response to many
factors, including estimates of the extent and costs of reclamation activities, technological changes, regulatory changes,
cost increases as compared to the inflation rate and changes in discount rates. These uncertainties may result in future
actual expenditures differing from the amount of the current provision. As a result, there could be significant adjustments
to the provisions established that would affect future financial results. The reclamation provision at each reporting date
represents management’s best estimate of the present value of the future environmental remediation costs required.
Business Combinations
Business combinations are accounted for using the acquisition method of accounting. The allocation of the purchase
price requires estimates as to the fair value of acquired assets and liabilities. The information necessary to measure the
fair values as at the acquisition date of assets acquired and liabilities assumed requires management to make certain
judgments and estimates, including but not limited to the most appropriate valuation methodology, estimates of mineral
reserves and mineral resources and exploration potential of the assets acquired, value of resources outside LOM plans
including assumptions for market values per ounce, future production levels, future operating costs, capital expenditures
and closure costs, discount rates, future metal prices and long term foreign exchange rates. Changes to the preliminary
measurements of assets and liabilities acquired may be retrospectively adjusted when new information is obtained until
the final measurements are determined within one year of the acquisition date. Refer to Note 5 for further details on
acquisitions.
Income and Mining Taxes
Management is required to make estimates regarding the tax basis of assets and liabilities and related deferred income
and mining tax assets and liabilities, amounts recorded for uncertain tax positions, the measurement of income and
mining tax expense and estimates of the timing of repatriation of income. Several of these estimates require management
to make assessments of future taxable profit and, if actual results are significantly different than the Company’s estimates,
the ability to realize any deferred income and mining tax assets recorded on the consolidated balance sheets could be
affected.
26
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
4.
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS (Continued)
Joint Arrangements
Judgment is required to determine when the Company has joint control of a contractual arrangement, which requires a
continuous assessment of the relevant activities and when the decisions in relation to those activities require unanimous
consent. Judgment is also continually required to classify a joint arrangement as either a joint operation or a joint venture
when the arrangement has been structured through a separate vehicle. Classifying the arrangement requires the Company
to assess its rights and obligations arising from the arrangement. Specifically, the Company considers the legal form of the
separate vehicle, the terms of the contractual arrangement and other relevant facts and circumstances. This assessment
often requires significant judgment, and a different conclusion on joint control, or whether the arrangement is a joint
operation or a joint venture, may have a material impact on the accounting treatment.
In 2014, management evaluated its joint arrangement with Yamana Gold Inc. to each acquire 50% of the Canadian
Malartic complex and certain other assets through the acquisition of the shares of Osisko Gold Corporation (subsequently
renamed Canadian Malartic Corporation (“CMC”)) under the principles of IFRS 11 – Joint Arrangements (“IFRS 11”).
The Company concluded that the arrangement qualified as a joint operation, upon considering the following significant
factors:
• The joint operators are required to purchase all output from the investee and investee restrictions on selling the
output to any third party;
• The parties to the arrangement are substantially the only source of cash flow contributing to the continuity of the
arrangement; and
• If the selling price drops below cost, the joint operators are required to cover any obligations the Partnership cannot
satisfy.
The remaining 50% of the Canadian Malartic complex and certain other of Yamana’s Canadian assets were acquired on
March 31, 2023 (Note 5), at which point Management began to fully consolidate the results of the Canadian Malartic
complex and the results of the other Canadian assets acquired from Yamana.
On April 6, 2023, Agnico Eagle entered into a joint venture shareholders’ agreement defined above under which it agreed
to subscribe for a 50% interest in MSN, which is the entity that holds the San Nicolás copper-zinc project (Note 5).
Management concluded that joint control exists, evaluated the joint arrangement under the principles of IFRS 11 and
determined that the arrangement qualified as a joint operation upon considering the following significant factors:
• While the San Nicolás deposit is not currently a producing asset, upon entering commercial production the joint
operators are required to purchase all output from MSN and MSN is restricted from selling the output to any third
party; and
• The joint operators are substantially the only source of cash flow contributing to the continuity of the arrangement
indicating that the joint operators assume the risk associated with the activities of the arrangement and are obligated
to continuously settle the liabilities of the joint arrangement.
5.
ACQUISITIONS
Acquisition of Investment in San Nicolás Joint Arrangement
On April 6, 2023, Agnico Eagle and Teck entered into a joint venture shareholders’ agreement in respect of the San
Nicolás copper-zinc development project located in Zacatecas, Mexico. The agreement provides that Agnico Eagle, through
a wholly-owned Mexican subsidiary, will subscribe for a 50% interest in MSN for $580.0 million, to be contributed as study
and development costs are incurred by MSN. For governance purposes, the agreement treats Agnico Eagle as a 50%
shareholder in MSN regardless of the number of shares that have been issued to Agnico Eagle or its affiliates, except in
certain circumstances of default. Under IFRS 11, Agnico Eagle jointly controls MSN as both parties have the ability to
make decisions relating to the relevant activities of MSN through their equal representation on the Board of Directors and
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
27
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
5.
ACQUISITIONS (Continued)
corresponding 50/50 voting rights. As a joint operation, the Company accounts for its interest in MSN by recognizing its
share of the respective assets, liabilities, revenues, expenses and cash flows.
On closing of the transaction, the Company recorded the initial acquisition of the mineral property and a $265.1 million
liability representing the minimum unavoidable obligation under the agreement (Note 15).
For the year ended December 31, 2023, the Company has recorded contributions of $11.0 million against the obligation.
Acquisition of the Canadian Assets of Yamana Gold Inc. (“Yamana”)
On March 31, 2023, the Company completed a transaction (the “Yamana Transaction”) under an arrangement agreement
entered into with Yamana and Pan American Silver Corp. (“Pan American”) pursuant to which Pan American acquired all
of the issued and outstanding common shares of Yamana and Yamana sold the subsidiaries and partnerships that held
Yamana’s interests in its Canadian assets to Agnico Eagle, including the remaining 50% of the Canadian Malartic complex
that the Company did not then hold, a 100% interest in the Wasamac project located in the Abitibi region of Quebec and
several other exploration properties located in Ontario and Manitoba. The acquisition increased the Company’s production,
mineral reserves and cash flow.
The Company determined that the acquisition represented a business combination under IFRS 3 – Business Combinations
(“IFRS 3”), with Agnico Eagle identified as the acquirer and, as such, was accounted for using the acquisition method of
accounting in accordance with IFRS 3.
Prior to the Yamana Transaction, Agnico Eagle’s 50% interests in CMC and the Partnership were jointly controlled with
Yamana and met the definition of a joint operation under IFRS 11, with Agnico Eagle recognizing its share of the assets,
liabilities, revenues and expenses in its consolidated results. As of March 31, 2023, Agnico Eagle controlled 100% of CMC
and the Partnership and, upon applying the requirements under IFRS 3 for a business combination achieved in stages,
the Company re-measured its previously held 50% interest in CMC and the Partnership to fair value on acquisition date.
The acquisition date fair value of the previously held 50% interest was determined to be $2,697.6 million, resulting in the
recognition of a re-measurement gain through net earnings of $1,543.4 million. The fair value of $2,697.6 million forms
part of the total consideration transferred under the Yamana Transaction as reflected in the table below. The fair value of
common shares issued was calculated based on 36,177,931 common shares issued at the closing share price immediately
prior to the closing of the Yamana Transaction.
The aggregate purchase consideration for the acquired assets, net of the assumed liabilities is as follows:
Fair value of common shares issued
$1,858,219
Cash
1,001,291
Fair value of previously held 50% interest
2,697,604
$5,557,114
The final estimates of fair value have been adjusted retrospectively to the acquisition date. Certain previously reported
financial statement line items were updated to reflect the impact of the adjusted final estimates of fair value of assets
acquired and liabilities assumed related to the Yamana Transaction.
The following table sets out the final allocation of the purchase price to the assets acquired and liabilities assumed based
on management’s estimates of fair value.
28
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
5.
ACQUISITIONS (Continued)
Preliminary(i)
Adjustments
Final
Cash and cash equivalents
$
1,049
$
–
$
1,049
Inventories
165,423
–
165,423
Other current assets
29,890
–
29,890
Property, plant and mine development
4,949,392
(1,183,876)
3,765,516
Goodwill
2,078,562
803,666
2,882,228
Other assets
330,215
(96,940)
233,275
Accounts payable and accrued and other liabilities
(117,905)
–
(117,905)
Reclamation provision
(203,341)
(4,950)
(208,291)
Deferred income and mining tax liabilities
(1,646,500)
482,100
(1,164,400)
Other liabilities
(29,671)
–
(29,671)
Total assets acquired, net of liabilities assumed
$ 5,557,114
$
–
$ 5,557,114
Note:
(i)
Estimates of the fair value of assets acquired and liabilities assumed are presented as reported in the Company’s condensed interim consolidated financial statements as at
March 31, 2023.
Goodwill represents items including the expected value of additional exploration potential arising from the acquisition.
None of the goodwill is expected to be deductible for income and mining tax purposes.
The Company incurred $18.4 million of acquisition-related costs in the year ended December 31, 2023. Acquisition-
related costs are recorded in the other expenses line of the consolidated statements of income.
The results of operations, cash flows and net assets acquired in the Yamana Transaction have been consolidated with
those of the Company from March 31, 2023. For the year ended December 31, 2023, the Yamana Transaction contributed
revenue of $493.8 million and earnings before income and mining taxes of $108.2 million.
Total consolidated revenue and earnings before income and mining taxes of the Company for the year ended December 31,
2023 were $6,626.9 million and $2,359.1 million, respectively. If the Yamana transaction had taken place on January 1,
2023, pro forma total consolidated revenue and income before income and mining taxes for the Company would have
been approximately $6,765.3 million and $2,408.3 million, respectively, for the year ended December 31, 2023.
Kirkland
On February 8, 2022, the Company acquired all of the issued and outstanding shares of Kirkland in exchange for the
issuance of Agnico Eagle common shares to former Kirkland shareholders pursuant to a plan of arrangement under the
Business Corporations Act (Ontario) (the “Merger”). Each Kirkland shareholder received 0.7935 of a common share of
Agnico Eagle as consideration for each Kirkland share, which resulted in the issuance of 209,274,263 Agnico Eagle
common shares. Prior to the Merger, Kirkland owned and operated the Detour Lake and Macassa mines in Canada and
the Fosterville mine in Australia, and also owned exploration properties in Canada and Australia. The acquisition of
Kirkland increased the Company’s production, mineral reserves and cash flow.
The Company determined that the Merger represented a business combination under IFRS 3, with Agnico Eagle identified
as the acquirer and, as such, the Merger was accounted for using the acquisition method of accounting in accordance
with IFRS 3.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
29
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
5.
ACQUISITIONS (Continued)
The aggregate purchase consideration for the acquired assets, net of the assumed liabilities is as follows:
Fair value of common shares issued
$10,268,584
Fair value of replacement share based compensation issued
14,522
$10,283,106
The final estimates of fair value have been adjusted retrospectively to the acquisition date. Certain previously reported
financial statement line items were updated to reflect the impact of the adjusted final estimates of fair value of assets
acquired and liabilities assumed related to the Merger.
The following table sets out the final allocation of the purchase price to the assets acquired and liabilities assumed in the
Merger based on management’s previously reported preliminary estimates and adjusted final estimates of fair value.
Preliminary(i)
Adjustments
Final
Cash and cash equivalents
$
838,732
$
–
$
838,732
Inventories
384,678
(35,402)
349,276
Other current assets
100,094
–
100,094
Property, plant and mine development
10,086,336
341,935
10,428,271
Goodwill
1,804,459
(168,128)
1,636,331
Other assets
143,415
(1,628)
141,787
Accounts payable and accrued and other liabilities
(235,778)
–
(235,778)
Reclamation provision
(175,839)
(52,289)
(228,128)
Deferred income and mining tax liabilities
(2,639,353)
(84,488)
(2,723,841)
Other liabilities
(23,638)
–
(23,638)
Total assets acquired, net of liabilities assumed
$10,283,106
$
–
$10,283,106
Note:
(i)
Estimates of the fair value of assets acquired and liabilities assumed are presented as reported in the Company’s condensed interim consolidated financial statements as at
March 31, 2022.
Goodwill represents the expected value of operational synergies and additional exploration potential arising from the
Merger. None of the goodwill is expected to be deductible for income and mining tax purposes.
The Company incurred acquisition-related and severance costs of $95.0 million in the year ended December 31, 2022
which are recorded in the other expenses line of the consolidated statements of income.
The results of operations, cash flows and net assets of Kirkland have been consolidated with those of the Company from
February 8, 2022. For the year ended December 31, 2022, Kirkland contributed revenue of $2,161.1 million and earnings
before income and mining taxes of $799.2 million. Total consolidated revenue and earnings before income and mining
taxes of the Company for the year ended December 31, 2022, were $5,741.2 million and $1,115.4 million, respectively.
If the acquisition of Kirkland had taken place on January 1, 2022, pro forma total consolidated revenue and income before
income and mining taxes for the Company would have been approximately $5,795.1 million and $1,131.1 million,
respectively, for the year ended December 31, 2022.
30
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
6.
FAIR VALUE MEASUREMENT
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. All assets and liabilities for which fair value is measured or disclosed in the
consolidated financial statements are categorized within the fair value hierarchy, described, as follows, based on the
lowest-level input that is significant to the fair value measurement as a whole:
Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical,
unrestricted assets or liabilities;
Level 2 – Quoted prices in markets that are not active or inputs that are observable, either directly or indirectly,
for substantially the full term of the asset or liability; and
Level 3 – Prices or valuation techniques that require inputs that are both significant to the fair value measurement
and unobservable (supported by little or no market activity).
The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
For items that are recognized at fair value on a recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by reassessing their classification at the end of each reporting period.
During the year ended December 31, 2023, there were no transfers between Level 1 and Level 2 fair value measurements,
and no transfers into or out of Level 3 fair value measurements.
The fair values of cash and cash equivalents and accounts payable and accrued liabilities approximate their carrying
values due to their short-term nature.
The following table sets out the Company’s financial assets and liabilities measured at fair value on a recurring basis as at
December 31, 2023 using the fair value hierarchy:
Level 1
Level 2
Level 3
Total
Financial assets:
Trade receivables (Note 19)
$
–
$
8,148
$
–
$
8,148
Equity securities (FVOCI) (Note 10)
293,145
30,566
–
323,711
Share purchase warrants (FVPL) (Note 10)
–
21,546
–
21,546
Fair value of derivative financial instruments (Note 21)
–
50,786
–
50,786
Total financial assets
$293,145
$111,046
$
–
$404,191
Financial liabilities:
Share based liabilities (Note 17D)
$ 35,469
$
–
$
–
$ 35,469
Fair value of derivative financial instruments (Note 21)
–
7,222
–
7,222
Total financial liabilities
$ 35,469
$
7,222
$
–
$ 42,691
The following table sets out the Company’s financial assets and liabilities measured at fair value on a recurring basis as at
December 31, 2022 using the fair value hierarchy:
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
31
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
6.
FAIR VALUE MEASUREMENT (Continued)
Level 1
Level 2
Level 3
Total
Financial assets:
Trade receivables (Note 19)
$
–
$ 8,579
$
–
$
8,579
Equity securities (FVOCI) (Note 10)
279,303
25,315
–
304,618
Share purchase warrants (FVPL) (Note 10)
–
28,124
–
28,124
Fair value of derivative financial instruments (Note 21)
–
8,774
–
8,774
Total financial assets
$279,303
$70,792
$
–
$350,095
Financial liabilities:
Share based liabilities (Note 17D)
$ 32,425
$
–
$
–
$ 32,425
Fair value of derivative financial instruments (Note 21)
–
78,114
–
78,114
Total financial liabilities
$ 32,425
$78,114
$
–
$110,539
Valuation Techniques
Trade Receivables
Trade receivables from provisional invoices for concentrate sales are valued using quoted forward rates derived from
observable market data based on the month of expected settlement (classified within Level 2 of the fair value hierarchy)
(Note 19).
Equity securities
Equity securities representing shares of publicly traded entities are recorded at fair value using quoted market prices
(classified within Level 1 of the fair value hierarchy). Equity securities representing shares of non-publicly traded entities
are recorded at fair value using external broker-dealer quotations corroborated by option pricing models (classified within
Level 2 of the fair value hierarchy) (Note 10).
Derivative Financial Instruments and Warrants
The Company holds share purchase warrants of certain publicly traded entities. Share purchase warrants are accounted
for as derivative financial instruments and are presented as part of investments in the consolidated balance sheet.
Derivative financial instruments classified within Level 2 of the fair value hierarchy are recorded at fair value using external
broker-dealer quotations corroborated by option pricing models or option pricing models that utilize a variety of inputs that
are a combination of quoted prices and market-corroborated inputs (Notes 10 and 21).
Share Based Liabilities
Share based liabilities are recorded at fair value using quoted market prices (classified within Level 1 of the fair value
hierarchy) (Note 17D).
Fair Value of Financial Assets and Liabilities Not Measured and Recognized at Fair Value
Long-term debt is recorded on the consolidated balance sheets at December 31, 2023 at amortized cost. The fair value of
long-term debt is determined by applying a discount rate, reflecting the credit spread based on the Company’s credit
32
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
6.
FAIR VALUE MEASUREMENT (Continued)
rating to future related cash flows which is categorized within Level 2 of the fair value hierarchy. As at December 31, 2023,
the Company’s long-term debt had a fair value of $1,797.9 million (2022 – $1,261.5 million) (Note 14).
The committed subscription proceeds for the San Nicolás project is recorded on the consolidated balance sheets at
December 31, 2023 at amortized cost. The fair value of the San Nicolás liability is determined by discounting the minimum
unavoidable obligation under the joint venture shareholders’ agreement between Agnico Eagle and Teck at a discount rate
that reflects the Company’s credit rating. The fair value of the San Nicolás liability is not materially different from the
carrying amount as a result of the difference between the discount rate used at the initial recognition date and the current
market rates at December 31, 2023 (Note 15).
Lease obligations are recorded on the consolidated balance sheets at December 31, 2023 at amortized cost. The fair
value of lease obligations is the present value of the future lease payments discounted at the Company’s current
incremental borrowing rate. It is remeasured when there is a change in the lease term, future lease payments or changes
in the assessment of whether the Company will exercise a purchase, extension or termination option. The fair value of
lease obligations is not materially different from the carrying amounts as a result of the difference between the incremental
borrowing rates used at the initial recognition date and the current market rates at December 31, 2023 (Note 13).
Non-current loans receivable and other receivables are included in the other asset line item in the consolidated balance
sheets at amortized cost. The fair value of loans and other receivables is the present value of future cash inflows discounted
at a market interest rate. The fair value of these financial assets is not materially different from the carrying amounts as at
December 31, 2023 (Note 8B).
7.
INVENTORIES
As at
December 31,
2023
As at
December 31,
2022
Ore in stockpiles and on leach pads
$ 238,197
$ 208,014
Concentrates and dore bars
237,805
184,841
Supplies
942,939
816,220
Total current inventories
$1,418,941
$1,209,075
Non-current ore in stockpiles and on leach pads (Note 8B)
632,049
405,988
Total inventories
$2,050,990
$1,615,063
During the year ended December 31, 2023, a charge of $2.7 million (December 31, 2022 – $62.4 million) was recorded
within production costs to reduce the carrying value of inventories to their net realizable value.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
33
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
8.
OTHER ASSETS
A)
Other Current Assets
As at
December 31,
2023
As at
December 31,
2022
Federal, provincial and other sales taxes receivable
$149,153
$100,267
Prepaid expenses
151,741
110,649
Short term investments
10,199
9,896
Other
35,934
39,140
Total other current assets
$347,027
$259,952
B)
Other Assets
As at
December 31,
2023
As at
December 31,
2022
Non-current ore in stockpiles and on leach pads
$632,049
$405,988
Non-current prepaid expenses
53,191
26,102
Non-current loans receivable
10,108
3,939
Intangible asset
–
13,318
Investment in associate
10,865
10,732
Other
8,954
6,831
Total other assets
$715,167
$466,910
34
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
9.
PROPERTY, PLANT AND MINE DEVELOPMENT
Mining
Properties
Plant and
Equipment
Mine
Development
Costs
Total
As at December 31, 2021
$ 2,124,035
$ 3,267,566
$ 2,283,994
$ 7,675,595
Additions
409,562
506,102
691,167
1,606,831
Acquisition (Note 5)
7,582,824
2,845,447
–
10,428,271
Impairment loss (Note 24)
(55,000)
–
–
(55,000)
Disposals
(6)
(25,964)
–
(25,970)
Amortization
(394,652)
(603,671)
(172,004)
(1,170,327)
Transfers between categories
1,542
264,948
(266,490)
–
As at December 31, 2022
$ 9,668,305
$ 6,254,428
$ 2,536,667
$ 18,459,400
Additions
408,439
419,072
962,095
1,789,606
Acquisitions(i) (Note 5)
749,498
946,754
1,320,855
3,017,107
Impairment loss (Note 24)
(282,030)
–
(84,083)
(366,113)
Disposals
–
(39,248)
–
(39,248)
Amortization
(648,052)
(757,949)
(232,846)
(1,638,847)
Transfers between categories
3,348
446,804
(450,152)
–
As at December 31, 2023
9,899,508
$ 7,269,861
4,052,536
$ 21,221,905
As at December 31, 2022
Cost
$11,872,806
$10,490,684
$ 3,714,370
$ 26,077,860
Accumulated amortization and impairments
(2,204,501)
(4,236,256)
(1,177,703)
(7,618,460)
Carrying value – December 31, 2022
$ 9,668,305
$ 6,254,428
$ 2,536,667
$ 18,459,400
As at December 31, 2023
Cost
$14,359,568
$12,458,000
$ 5,652,853
$ 32,470,421
Accumulated amortization and impairments
(4,460,060)
(5,188,139)
(1,600,317)
(11,248,516)
Carrying value – December 31, 2023
9,899,508
$ 7,269,861
4,052,536
$ 21,221,905
(i)
Acquisitions include all re-measurement gains on the Company’s previously owned property, plant and mine development in CMC and the Partnership at the date of the Yamana
Transaction in addition to the acquisition of property, plant and mine development that the Company did not previously own. Acquisitions also include property, plant and mine
development acquired as part of the San Nicolás project.
During the year ended December 31, 2023, net additions to Plant and Equipment included $50.6 million of right-of-use
assets for lease arrangements entered into during the year (December 31, 2022 – $59.6 million).
As at December 31, 2023, major assets under construction, and therefore not yet being depreciated, included in the
carrying value of property, plant and mine development was $868.7 million (December 31, 2022 – $1,277.7 million).
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
35
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
9.
PROPERTY, PLANT AND MINE DEVELOPMENT (Continued)
During the year ended December 31, 2023, the Company disposed of property, plant and mine development with a
carrying value of $39.2 million (December 31, 2022 – $25.9 million). The net loss on disposal of $26.8 million
(2022 – $8.8 million) was recorded in the other expenses line item in the consolidated statements of income (Note 22).
Geographic Information:
As at
December 31,
2023
As at
December 31,
2022
Canada
$17,900,132
$15,228,426
Australia
1,173,090
1,188,301
Finland
1,446,548
1,447,399
Sweden
13,812
13,812
Mexico
682,572
573,922
United States
5,751
7,540
Total property, plant and mine development
$21,221,905
$18,459,400
10. INVESTMENTS
As at
December 31,
2023
As at
December 31,
2022
Equity securities
$323,711
$304,618
Share purchase warrants
21,546
28,124
Total investments
$345,257
$332,742
36
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
10. INVESTMENTS (Continued)
The following tables set out details of the Company’s largest equity investments by carrying value:
As at December 31, 2023
Equity
securities
Share purchase
warrants
Total
Orla Mining Ltd.
$ 90,158
$15,093
$105,251
Rupert Resources Ltd.
88,505
–
88,505
Canada Nickel
16,894
1,830
18,724
Other(i)
128,154
4,623
132,777
Total investments
$323,711
$21,546
$345,257
As at December 31, 2022
Equity
securities
Share purchase
warrants
Total
Rupert Resources Ltd.
$105,324
$
–
$105,324
Orla Mining Ltd.
95,548
27,152
122,700
Wallbridge Mining Company Ltd.
11,499
–
11,499
White Gold Corp.
9,823
6
9,829
Other(i)
82,424
966
83,390
Total investments
$304,618
$28,124
$332,742
Note:
(i)
The balance is comprised of 48 (2022 – 43) equity investments none of which are individually material.
Disposal of Equity Securities
During the year ended December 31, 2023 the Company sold its interest in certain equity securities. The fair value at the
time of sale was $0.5 million and the Company recognized a cumulative net loss on disposal of $2.9 million ($2.2 million,
net of tax), which was transferred from other reserves to retained earnings in the consolidated balance sheets. There were
no disposals of equity securities in the year ended December 31, 2022.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
37
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
As at
December 31,
2023
As at
December 31,
2022
Trade payables
$317,888
$259,002
Accrued liabilities
253,806
250,894
Wages payable
94,368
99,972
Other liabilities
84,318
62,635
Total accounts payable and accrued liabilities
$750,380
$672,503
In 2023 and 2022, the other liabilities balance consisted primarily of various employee benefits, employee payroll tax
withholdings and other payroll taxes.
12. RECLAMATION PROVISION
Agnico Eagle’s reclamation provision includes both asset retirement obligations and environmental remediation liabilities.
Reclamation provision estimates are based on current legislation, third party estimates, management’s estimates and
feasibility study calculations. Assumptions based on current economic conditions, which the Company believes are
reasonable, have been used to estimate the reclamation provision. However, actual reclamation costs will ultimately
depend on future economic conditions and costs for the necessary reclamation work. Changes in reclamation provision
estimates during the period reflect changes in cash flow estimates as well as assumptions including discount and inflation
rates. The discount rates used in the calculation of the reclamation provision at December 31, 2023 ranged between
2.69% and 4.27% (2022 – between 3.16% and 4.34%).
The following table reconciles the beginning and ending carrying amounts of the Company’s asset retirement obligations.
The settlement of the obligation is estimated to occur through to 2142.
As at
December 31,
2023
As at
December 31,
2022
Asset retirement obligations – non-current, beginning of year
$ 865,319
$706,958
Asset retirement obligations – current, beginning of year
22,127
4,547
Current year additions and changes in estimate, net(i)
127,413
217,506
Current year accretion
32,906
15,951
Liabilities settled
(9,085)
(16,850)
Foreign exchange revaluation
23,893
(40,666)
Reclassification from non-current to current, end of year
(22,570)
(22,127)
Asset retirement obligations – non-current, end of year
$1,040,003
$865,319
Note:
(i)
Current year additions include $110.6 million related to the Yamana Transaction.
The following table reconciles the beginning and ending carrying amounts of the Company’s environmental remediation
liability. The settlement of the obligation is estimated to occur through to 2031.
38
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
12. RECLAMATION PROVISION (Continued)
As at
December 31,
2023
As at
December 31,
2022
Environmental remediation liability – non-current, beginning of year
$13,009
$15,491
Environmental remediation liability – current, beginning of year
1,381
3,000
Liabilities settled
(3,737)
(3,058)
Foreign exchange revaluation
278
(1,043)
Reclassification from non-current to current, end of year
(1,696)
(1,381)
Environmental remediation liability – non-current, end of year
$ 9,235
$13,009
13. LEASES
The Company is party to a number of contracts that contain a lease, most of which include office facilities, storage facilities
and various plant and equipment. Leases of low value assets, short term leases and leases with variable payments
proportional to the rate of use of the underlying asset do not give rise to a lease obligation and a right-of-use asset. The
expenses associated with such leases are included in operating costs in the consolidated statements of income.
The following table sets out the carrying amounts of right-of-use assets included in property, plant and mine development
in the consolidated balance sheets and the movements during the period:
As at
December 31,
2023
As at
December 31,
2022
Balance, beginning of year
$165,708
$134,022
Additions and modifications, net of disposals
50,644
59,598
Amortization
(34,046)
(27,912)
Balance, end of year
$182,306
$165,708
The following table sets out the lease obligations included in the consolidated balance sheets:
As at
December 31,
2023
As at
December 31,
2022
Current
$ 46,394
$ 36,466
Non-current
115,154
114,876
Total lease obligations
$161,548
$151,342
Future minimum lease payments required to meet obligations that have initial or remaining non-cancellable lease terms
are set out in the table below. Because leases with variable lease payments do not give rise to fixed minimum lease
payments, no amounts are included below for such leases.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
39
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
13. LEASES (Continued)
As at
December 31,
2023
As at
December 31,
2022
Within 1 year
$ 47,600
$ 38,012
Between 1 – 3 years
40,261
43,439
Between 3 – 5 years
24,904
21,637
Thereafter
55,498
54,258
Total undiscounted lease obligations
$168,263
$157,346
The Company recognized the following amounts in the consolidated statements of income with respect to leases:
Year Ended December 31,
2023
2022
Amortization of right-of-use assets
$ 34,046
$ 27,912
Interest expense on lease obligations
$
4,350
$
2,919
Variable lease payments not included in the measurement of lease obligations
$115,467
$115,890
Expenses relating to short-term leases
$
6,598
$ 11,081
Expenses relating to leases of low value assets, excluding short-term leases of low value assets
$
3,114
$
1,663
During the year ended December 31, 2023, the Company recognized $275.2 million (2022 – $242.5 million) in the
consolidated statements of cash flows with respect to leases.
40
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
14. LONG-TERM DEBT
As at
December 31,
2023
As at
December 31,
2022
Old Credit Facility(i)(ii)
$
(2,323)
$
(3,115)
Term Loan Facility(i)(iii)
599,333
–
2020 Notes(i)(iii)
198,945
198,798
2018 Notes(i)(iii)
348,657
348,487
2017 Notes(i)(iii)
299,103
298,886
2016 Notes(i)(iii)
249,530
349,316
2015 Note(i)(iii)
49,886
49,821
2012 Notes(i)(iii)
99,955
99,877
Total debt
$1,843,086
$1,342,070
Less: current portion
100,000
100,000
Total long-term debt
$1,743,086
$1,242,070
Notes:
(i)
Inclusive of unamortized deferred financing costs.
(ii) There were no amounts outstanding under the Old Credit Facility (as defined below) as at December 31, 2023 and December 31, 2022. The December 31, 2023 and December 31,
2022 balances relate to deferred financing costs which are being amortized on a straight-line basis until the maturity date of December 22, 2026 (2022 – December 22, 2026).
(iii) The Term Loan Facility, 2020 Notes, 2018 Notes, 2017 Notes, 2016 Notes, 2015 Note and 2012 Notes are defined below.
Scheduled Debt Principal Repayments
2024
2025
2026
2027
2028
Thereafter
Total
Term Loan Facility
$
–
$600,000
$
–
$
–
$
–
$
–
$ 600,000
2020 Notes
–
–
–
–
–
200,000
200,000
2018 Notes
–
–
–
–
45,000
305,000
350,000
2017 Notes
–
40,000
–
100,000
–
160,000
300,000
2016 Notes
–
–
200,000
–
50,000
–
250,000
2015 Note
–
50,000
–
–
–
–
50,000
2012 Notes
100,000
–
–
–
–
–
100,000
Total
$100,000
$690,000
$200,000
$100,000
$95,000
$665,000
$1,850,000
Old Credit Facility
On December 22, 2021, the Company amended its $1.2 billion unsecured revolving bank credit facility (the “Old Credit
Facility”) to, among other things, extend the maturity date from June 22, 2023 to December 22, 2026 and amend pricing
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
41
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
14. LONG-TERM DEBT (Continued)
terms. The amendment also increased the amount of the uncommitted accordion facility available to the Company from
$300 million to $600 million. On June 30, 2023, the Company further amended the Old Credit Facility to update the
benchmark rate from LIBOR to the Secured Overnight Financing Rate (“SOFR”) and Canadian Overnight Repo Rate
Average (“CORRA”).
As at December 31, 2023 and December 31, 2022, no amounts were outstanding under the Old Credit Facility. As at
December 31, 2023, $1,198.9 million was available for future drawdown under the Old Credit Facility (December 31,
2022 – $1,199.1 million). Availability under the Old Credit Facility was reduced by outstanding letters of credit which were
$1.1 million as at December 31, 2023 (December 31, 2022 – $0.9 million). During the year ended December 31, 2023,
Old Credit Facility drawdowns totaled $1,300.0 million and repayments totaled $1,300.0 million. During the year ended
December 31, 2022, Old Credit Facility drawdowns totaled $100.0 million and repayments totaled $100.0 million.
The Old Credit Facility was available in multiple currencies through prime rate and base rate advances, priced at the
applicable rate plus a margin that ranged from 0.00% to 1.00%, through SOFR and CORRA advances, bankers’
acceptances and financial letters of credit, priced at the applicable rate plus a margin that ranges from 1.00% to 2.00%
and through performance letters of credit, priced at the applicable rate plus a margin that ranged from 0.60% to 1.20%.
The lenders under the Old Credit Facility were each paid a standby fee at a rate that ranged from 0.09% to 0.25% of the
undrawn portion of the facility. In each case, the applicable margin or standby fees vary depended on the Company’s
credit rating.
On February 12, 2024, the Company entered into the New Credit Facility (as defined below) and terminated the Old Credit
Facility (Note 29).
Term Loan Facility
On April 20, 2023, the Company entered into a credit agreement with two financial institutions that provides a
$600.0 million unsecured term credit facility (the “Term Loan Facility”). The Company drew the full amount of the Term
Loan Facility on April 28, 2023. The Term Loan Facility matures and all indebtedness thereunder is due and payable on
April 21, 2025. The Term Loan Facility is available as a single advance in US dollars through SOFR and base rate
advances, priced at the applicable rate plus a margin that ranges from 0.00% to 2.00%, depending on the Company’s
credit rating.
On February 12, 2024, the Company and the lenders under the Term Loan Facility amended the Term Loan Facility in
connection with the Company’s entry into the New Credit Facility to, among other things, release the subsidiary guarantees
previously provided to the lenders under the facility (Note 29).
2020 Notes
On April 7, 2020, the Company closed a $200.0 million private placement of guaranteed senior unsecured notes (the
“2020 Notes”) with a weighted average maturity of 11 years and weighted average yield of 2.83%.
The following table sets out details of the individual series of the 2020 Notes:
Principal
Interest Rate
Maturity Date
Series A
$100,000
2.78%
4/7/2030
Series B
100,000
2.88%
4/7/2032
Total
$200,000
2018 Notes
On April 5, 2018, the Company closed a $350.0 million private placement of guaranteed senior unsecured notes (the
“2018 Notes”).
42
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
14. LONG-TERM DEBT (Continued)
The following table sets out details of the individual series of the 2018 Notes:
Principal
Interest Rate
Maturity Date
Series A
$ 45,000
4.38%
4/5/2028
Series B
55,000
4.48%
4/5/2030
Series C
250,000
4.63%
4/5/2033
Total
$350,000
2017 Notes
On June 29, 2017, the Company closed a $300.0 million private placement of guaranteed senior unsecured notes (the
“2017 Notes”).
The following table sets out details of the individual series of the 2017 Notes:
Principal
Interest Rate
Maturity Date
Series A
$ 40,000
4.42%
6/29/2025
Series B
100,000
4.64%
6/29/2027
Series C
150,000
4.74%
6/29/2029
Series D
10,000
4.89%
6/29/2032
Total
$300,000
2016 Notes
On June 30, 2016, the Company closed a $350.0 million private placement of guaranteed senior unsecured notes (the
“2016 Notes”). On June 30, 2023, the Company repaid $100.0 million of the Series A 4.54% Notes at maturity.
The following table sets out details of the remaining series of the 2016 Notes:
Principal
Interest Rate
Maturity Date
Series B
$200,000
4.84%
6/30/2026
Series C
50,000
4.94%
6/30/2028
Total
$250,000
2015 Note
On September 30, 2015, the Company closed a private placement of a $50.0 million guaranteed senior unsecured note
(the “2015 Note”) with a September 30, 2025 maturity date and a yield of 4.15%.
2012 Notes
On July 24, 2012, the Company closed a $200.0 million private placement of guaranteed senior unsecured notes (the
“2012 Notes”) and, together with the 2020 Notes, 2018 Notes, the 2017 Notes, the 2016 Notes and the 2015 Note, the
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
43
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
14. LONG-TERM DEBT (Continued)
“Notes”). The 2012 Notes consisted of a $100.0 million tranche of 4.87% notes due July 25, 2022 and a $100.0 million
tranche of 5.02% notes due July 23, 2024.
On July 25, 2022, the Company repaid $100.0 million of the 2012 Series A 4.87% Notes at maturity. As at December 31,
2023, $100.0 million of the 2012 Series B 5.02% Notes remained outstanding with a maturity date of July 23, 2024.
Covenants
Payment and performance of Agnico Eagle’s obligations under the Old Credit Facility, Term Loan Facility, and the Notes
were guaranteed by each of its material subsidiaries and certain of its other subsidiaries (the “Guarantors”). However, in
connection with the Company’s entry into the New Credit Facility on February 12, 2024, the subsidiary guarantees provided
in connection with the Term Loan Facility and the Notes were released.
Each of the Old Credit Facility and the New Credit Facility contains covenants that limit, among other things, the ability of
the Company to incur additional indebtedness, make distributions in certain circumstances and sell material assets.
The covenants in the Term Loan Facility were amended such that they limit the actions of the Company in the same
manner and to the same extent as the limitations under the New Credit Facility.
The note purchase agreements pursuant to which the Notes were issued (the “Note Purchase Agreements”) contain
covenants that restrict, among other things, the ability of the Company to amalgamate or otherwise transfer its assets, sell
material assets, carry on a business other than one related to mining and the ability of the Guarantors to incur
indebtedness.
The New Credit Facility, Term Loan Facility and Note Purchase Agreements also require the Company to maintain a total
net debt to capitalization ratio below a specified maximum value and the Note Purchase Agreements (other than the 2018
and 2020 Notes) require the Company to maintain a minimum tangible net worth.
The Company was in compliance with all covenants contained in the Old Credit Facility, Term Loan Facility and
Note Purchase Agreements throughout the years-ended and as at December 31, 2023 and 2022.
Finance Costs
Total finance costs consist of the following:
Year Ended December 31,
2023
2022
Interest on Notes
$ 57,192
$64,481
Interest on Term Loan Facility
26,273
–
Interest on Old Credit Facility
10,928
536
Old Credit Facility fees
6,374
3,859
Amortization of credit and term loan financing and note issuance costs
3,290
3,042
Accretion expense on reclamation provisions
32,906
15,951
Interest on lease obligations and other interest expense (income)
(3,699)
(1,290)
Interest capitalized to assets under construction
(3,177)
(3,644)
Total finance costs
$130,087
$82,935
44
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
14. LONG-TERM DEBT (Continued)
Borrowing costs were capitalized to assets under construction during the year ended December 31, 2023 at a weighted
average capitalization rate of 1.28% (2022 – 1.16%).
15. OTHER LIABILITIES
Other liabilities consist of the following:
As at
December 31,
2023
As at
December 31,
2022
Committed subscription proceeds for San Nicolás project
$229,950
$
–
Pension benefit obligations
56,255
53,024
Deferred income
24,046
13,955
Other
11,855
5,636
Total other liabilities
$322,106
$72,615
The committed subscription proceeds represent the minimum unavoidable obligation under the joint venture shareholders’
agreement between Agnico Eagle and Teck. As at December 31, 2023, cumulative contributions of $11.0 million were
recorded against the obligation (Note 5). The current portion of the remaining obligation is recorded on the accounts
payable and accrued liabilities line item of the consolidated financial statements (Note 11).
Defined Benefit Obligations
The Company provides the Executives Plan for certain current and former senior officers, the Retirement Program for
eligible employees in Canada and the Mexico Plans for eligible employees in Mexico, each of which are considered
defined benefit plans under IAS 19 – Employee Benefits. The funded status of the plans are based on actuarial valuations
performed as at December 31, 2023. The plans operate under similar regulatory frameworks and generally face similar
risks.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
45
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
15. OTHER LIABILITIES (Continued)
The funded status of the Company’s defined benefit obligations for 2023 and 2022, is as follows:
Year Ended December 31,
2023
2022
Reconciliation of plan assets:
Plan assets, beginning of year
$ 2,835
$ 2,905
Employer contributions
5,936
1,713
Benefit payments
(5,727)
(1,473)
Administrative expenses
(105)
(120)
Interest on assets
145
87
Net return on assets excluding interest
(145)
(87)
Effect of exchange rate changes
70
(190)
Plan assets, end of year
$ 3,009
$ 2,835
Reconciliation of defined benefit obligation:
Defined benefit obligation, beginning of year
$46,733
$44,844
Current service cost
3,660
2,976
Benefit payments
(5,727)
(1,473)
Interest cost
3,176
1,797
Actuarial losses (gains) arising from changes in economic assumptions
975
(7,028)
Actuarial (gains) losses arising from changes in demographic assumptions
(276)
772
Actuarial (gains) losses arising from Plan experience
(2,485)
6,363
Effect of exchange rate changes
724
(1,518)
Defined benefit obligation, end of year
46,780
46,733
Net defined benefit liability, end of year
$43,771
$43,898
46
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
15. OTHER LIABILITIES (Continued)
The components of Agnico Eagle’s pension expense recognized in the consolidated statements of income relating to the
defined benefit plans are as follows:
Year Ended December 31,
2023
2022
Current service cost
$3,660
$2,976
Administrative expenses
105
120
Interest cost on defined benefit obligation
3,176
1,797
Interest on assets
(145)
(87)
Pension expense
$6,796
$4,806
The remeasurements of the net defined benefit liability recognized in other comprehensive income relating to the
Company’s defined benefit plans are as follows:
Year Ended December 31,
2023
2022
Actuarial (gains) losses relating to the defined benefit obligation
$(1,786)
$107
Net return on assets excluding interest
145
87
Total remeasurements of the net defined benefit liability
$(1,641)
$194
In 2024, the Company expects to make contributions of $4.2 million and benefit payments of $4.2 million, in aggregate,
related to the defined benefit plans. The weighted average duration of the Company’s defined benefit obligation in Canada
is 12.6 years at December 31, 2023 (December 31, 2022 – 13.0 years). The weighted average duration of the Company’s
defined benefit obligation for the Mexico Plans is 3.9 years at December 31, 2023 (December 31, 2022 – 4.9 years).
The following table sets out significant assumptions used in measuring the Company’s Executives Plan defined benefit
obligations:
As at
December 31,
2023
As at
December 31,
2022
Assumptions:
Discount rate – beginning of year
5.0%
3.0%
Discount rate – end of year
4.8%
5.0%
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
47
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
15. OTHER LIABILITIES (Continued)
The following table sets out significant assumptions used in measuring the Company’s Retirement Program defined
benefit obligations:
As at
December 31,
2023
As at
December 31,
2022
Assumptions:
Discount rate – beginning of year
5.0%
2.5%
Discount rate – end of year
4.5%
5.0%
Range of mine closure dates
2027 – 2034
2026 – 2036
Termination of employment per annum
2.0% – 10.0%
2.0% – 10.0%
The following table sets out significant assumptions used in measuring the Company’s defined benefit obligations for the
Mexico Plans:
As at
December 31,
2023
As at
December 31,
2022
Assumptions:
Discount rate
9.5%
9.5%
Range of mine closure dates
2024 – 2027
2024 – 2027
Other significant actuarial assumptions used in measuring the Company’s Retirement Program defined benefit obligations
as at December 31, 2023 and December 31, 2022 include assumptions of the expected retirement age of participants.
The following table sets out the effect of changes in significant actuarial assumptions on the Company’s defined benefit
obligations:
As at
December 31,
2023
Change in assumption:
0.5% increase in discount rate
$(1,607)
0.5% decrease in discount rate
$ 1,718
The summary of the effect of changes in significant actuarial assumptions was prepared using the same methods and
actuarial assumptions as those used for the calculation of the Company’s defined benefit obligation related to the
Executives Plan, the Retirement Program and the Mexico Plans as at the end of the fiscal year, except for the change in
the single actuarial assumption being evaluated. The modification of several actuarial assumptions at the same time could
lead to different results.
48
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
15. OTHER LIABILITIES (Continued)
Other Plans
In addition to its defined benefit pension plans, the Company maintains two defined contribution plans – the Basic Plan
and the Supplemental Plan. Under the Basic Plan, Agnico Eagle contributes 5.0% of certain employees’ base employment
compensation to a defined contribution plan. In 2023, $20.0 million (2022 – $18.6 million) was contributed to the Basic
Plan, $0.2 million of which related to contributions for key management personnel (2022 – $0.3 million). The Company
also maintains the Supplemental Plan for designated executives at the level of Vice-President or above. The Supplemental
Plan is funded by the Company through notional contributions equal to 10.0% of the designated executive’s earnings for
the year (including salary and short-term bonus). In 2023, the Company made $1.8 million (2022 – $2.0 million) in
notional contributions to the Supplemental Plan, all of which of which related to contributions for key management
personnel (2022 – $1.4 million).The Company’s liability related to the Supplemental Plan is $10.7 million at December 31,
2023 (2022 – $10.3 million). At retirement date, the notional account balance is converted to a pension payable in five
annual installments.
16. EQUITY
Common Shares
The Company’s authorized share capital includes an unlimited number of common shares with no par value. As at
December 31, 2023, Agnico Eagle’s issued common shares totaled 497,970,524 (December 31, 2022 – 457,160,104),
of which 671,083 common shares are held in trusts as described below (2022 – 694,808).
The common shares held in trusts relate to the Company’s RSU plan, PSU plan and Long Term Incentive Plan (“LTIP”).
The trusts have been evaluated under IFRS 10 – Consolidated Financial Statements and are consolidated in the accounts
of the Company, with shares held in trust offset against the Company’s issued shares in its consolidated financial
statements. The common shares purchased and held in trusts are excluded from the basic net income per share
calculations until they have vested. All of the non-vested common shares held in trusts are included in the diluted net
income per share calculations, unless the impact is anti-dilutive.
On April 28, 2022, the Company received approval from the Toronto Stock Exchange to establish a normal course issuer
bid (“NCIB”). The Company has authorized purchases under the NCIB of the lesser of (i) 5% of the issued and outstanding
common shares on the date of commencement or renewal of the NCIB, as the case may be, and (ii) such number of
common shares that may be purchased for an aggregate purchase price, excluding commissions, of $500.0 million from
the commencement or renewal of the NCIB as the case may be. On May 2, 2023, the Company received approval from
the Toronto Stock Exchange to renew the NCIB until May 3, 2024.
During the year ended December 31, 2023, the Company repurchased and cancelled 100,000 common shares
(2022 – 1,569,620) for aggregate consideration of $4.8 million (2022 – $69.9 million) at an average price of $47.74
(2022 – $44.53) under the NCIB. The book value of the cancelled shares was $3.6 million (2022 – $55.9 million) and
was treated as a reduction to common share capital. The portion of the consideration paid for the repurchased shares in
excess of their book value, $1.2 million (2022 – $14.0 million), was treated as a reduction from contributed surplus.
The following table sets out the maximum number of common shares that would be outstanding if all dilutive instruments
outstanding as at December 31, 2023 were exercised:
Common shares outstanding at December 31, 2023
497,299,441
Employee stock options
4,646,412
Common shares held in trusts in connection with the RSU plan (Note 17C), PSU plan (Note 17D) and LTIP
671,083
Total
502,616,936
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
49
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
16. EQUITY (Continued)
Net Income Per Share
The following table sets out the weighted average number of common shares used in the calculation of basic and diluted
net income per share:
Year Ended December 31,
2023
2022
Net income for the year – basic
$1,941,307
$670,249
Add: Dilutive impact of cash settling stock-based compensation
(4,736)
–
Net income for the year – diluted
1,936,571
670,249
Weighted average number of common shares outstanding – basic (in thousands)
488,723
437,678
Add: Dilutive impact of common shares related to the RSU plan, PSU plan and LTIP
1,174
738
Add: Dilutive impact of employee stock options
16
117
Weighted average number of common shares outstanding – diluted (in thousands)
489,913
438,533
Net income per share – basic
$
3.97
$
1.53
Net income per share – diluted
$
3.95
$
1.53
Diluted net income per share has been calculated using the treasury stock method. In applying the treasury stock method,
outstanding employee stock options with an exercise price greater than the average quoted market price of the common
shares for the period outstanding are not included in the calculation of diluted net income per share as the impact would
be anti-dilutive.
For the year ended December 31, 2023, 3,323,122 (2022 – 4,194,765) employee stock options were excluded from the
calculation of diluted net income per share as their impact would have been anti-dilutive.
17. STOCK-BASED COMPENSATION
A)
Employee Stock Option Plan (“ESOP”)
The Company’s ESOP provides for the grant of stock options to directors, officers, employees and service
providers to purchase common shares. Under the ESOP, stock options are granted at the fair market value of the
underlying shares on the day prior to the date of grant. The number of common shares that may be reserved for
issuance to any one person pursuant to stock options (under the ESOP or otherwise), warrants, share purchase
plans or other arrangements may not exceed 5.0% of the Company’s common shares issued and outstanding at
the date of grant.
On April 24, 2021, the Compensation Committee of the Board adopted a policy pursuant to which stock options
granted after that date have a maximum term of five years. In 2021, the shareholders approved a resolution to
increase the number of common shares reserved for issuance under the ESOP to 38,700,000 common shares.
Of the stock options granted under the ESOP, 25% vest within 30 days of the grant date and the remaining stock
options vest in equal installments on the next three anniversary dates of the grant. Upon the exercise of stock
options under the ESOP, the Company issues common shares from treasury to settle the obligation.
50
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
17. STOCK-BASED COMPENSATION (Continued)
The following table sets out activity with respect to Agnico Eagle’s outstanding stock options:
Year Ended
December 31, 2023
Year Ended
December 31, 2022
Number of
Stock
Options
Weighted
Average
Exercise
Price
Number of
Stock
Options
Weighted
Average
Exercise
Price
Outstanding, beginning of year
4,976,636
C$75.04
4,482,941
C$74.43
Granted
873,950
70.36
1,643,801
67.10
Exercised
(940,921)
57.68
(944,989)
57.68
Forfeited
(240,603)
78.03
(205,117)
78.08
Expired
(22,650)
71.95
–
–
Outstanding, end of year
4,646,412
C$77.54
4,976,636
C$75.04
Options exercisable, end of year
2,950,555
C$80.18
2,706,334
C$73.76
The average share price of Agnico Eagle’s common shares during the year ended December 31, 2023 was
C$68.94 (2022 – C$64.87).
The weighted average grant date fair value of stock options granted in 2023 was C$17.00 (2022 – C$11.09).
The following table sets out information about Agnico Eagle’s stock options outstanding and exercisable as at
December 31, 2023:
Stock Options Outstanding
Stock Options Exercisable
Range of Exercise Prices
Number
Outstanding
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
Number
Exercisable
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise
Price
C$55.10 – C$67.19
1,323,290
2.96 years
C$66.96
594,093
2.89 years
C$66.68
C$70.36 – C$89.59
3,323,122
2.16 years
81.75
2,356,462
1.70 years
83.58
C$55.10 – C$89.59
4,646,412
2.39 years
C$77.54
2,950,555
1.94 years
C$80.18
The Company has reserved for issuance 4,646,412 common shares in the event that these stock options are
exercised.
The number of common shares available for the grant of stock options under the ESOP as at December 31,
2023 was 3,019,367.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
51
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
17. STOCK-BASED COMPENSATION (Continued)
Agnico Eagle estimated the fair value of stock options under the Black-Scholes option pricing model using the
following weighted average assumptions:
Year Ended December 31,
2023
2022
Risk-free interest rate
4.26%
1.65%
Expected life of stock options (in years)
2.5
2.4
Expected volatility of Agnico Eagle’s share price
36.0%
30.0%
Expected dividend yield
3.6%
2.9%
The Company uses historical volatility to estimate the expected volatility of Agnico Eagle’s share price. The
expected term of stock options granted is derived from historical data on employee exercise and post-vesting
employment termination experience.
Compensation expense related to the ESOP amounted to $12.1 million for the year ended December 31, 2023
(2022 – $15.8 million).
Subsequent to the year ended December 31, 2023, 1,021,400 stock options were granted under the ESOP, of
which 255,350 stock options vested within 30 days of the grant date. The remaining stock options, all of which
expire in 2029, vest in equal installments on each anniversary date of the grant over a three-year period.
B)
Incentive Share Purchase Plan (“ISPP”)
In 2023, 885,842 common shares were subscribed for under the ISPP (2022 – 615,069) for a value of
$44.8 million (2022 – $30.3 million). Eligible participants under the ISPP may contribute up to 10% of their
basic annual salaries to subscribe for common shares of the Company and the Company will contribute an
amount equal to 50.0% of each participant’s contribution. All common shares subscribed for under the ISPP are
issued by the Company. In April 2022, the Company’s shareholders approved an increase in the maximum
number of common shares reserved for issuance under the ISPP to 9,600,000 from 8,100,000. As at
December 31, 2023, Agnico Eagle has reserved for issuance 371,691 common shares (2022 – 1,257,533)
under the ISPP.
The total compensation cost recognized in 2023 related to the ISPP was $14.9 million (2022 – $10.1 million).
C)
Restricted Share Unit (“RSU”) Plan
In 2009, the Company implemented the RSU plan for certain employees. Effective January 1, 2012, the RSU
plan was amended to include directors and senior executives of the Company as eligible participants.
A deferred compensation balance is recorded for the total grant date value on the date of each RSU plan grant.
The deferred compensation balance is recorded as a reduction of equity and is amortized as compensation
expense over the vesting period of up to three years.
In 2023, 595,004 (2022 – 656,091) RSUs were granted with a grant date fair value of $54.50 (2022 – $46.84).
In 2023, the Company funded the RSU plan by transferring $32.0 million (2022 – $31.6 million) to an employee
benefit trust that then purchased common shares of the Company in the open market. The grant date fair value
of the RSUs generally approximates the cost of purchasing the shares in the open market. Once vested, the
common shares in the trust are distributed to settle the obligation along with a cash payment reflecting the
accumulated amount that would have been paid as dividends had the common shares been outstanding. On
February 8, 2022, all outstanding Kirkland restricted share units were converted to 324,884 Agnico RSUs in
52
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
17. STOCK-BASED COMPENSATION (Continued)
connection with the Merger (Note 5). These RSUs are accounted for as cash-settled share based liabilities. At
each reporting date, and on settlement, the share based liabilities are remeasured, with changes in fair value
recognized as compensation expense in the period.
Compensation expense related to the RSU plan was $38.1 million in 2023 (2022 – $27.5 million). Compensation
expense related to the RSU plan is included in the production and general and administrative line items, as
applicable, in the consolidated statements of income.
Subsequent to the year ended December 31, 2023, 179,176 RSUs were granted under the RSU plan.
D)
Performance Share Unit (“PSU”) Plan
Beginning in 2016, the Company adopted a PSU plan for senior executives of the Company. PSUs are subject to
vesting requirements over a three-year period based on specific performance measurements established by the
Company. The Company has historically settled awards under the PSU plan with equity and accounted for them
accordingly, however granted units that vested in 2022 were subsequently settled in cash, resulting in a change
in their accounting to cash-settled share based liabilities. In 2022, the fair value of the share based liability
recognized on modification of $17.9 million was recognized as a direct charge to shareholders’ equity on the
date of modification. All remaining and future grants under the PSU plan will be accounted for as cash-settled
awards. At each reporting date and on settlement, the share based liabilities are remeasured, with changes in
fair value recognized as share based compensation expense in the period.
In 2023, 154,000 PSUs were granted (2022 – 157,500). The value of a PSU at the grant date approximates the
market price of a common share of the Company on that date. The PSUs are accounted for as cash-settled
share based liabilities. At each reporting date, and on settlement, the share based liabilities are remeasured,
with changes in fair value recognized as compensation expense in the period. On February 8, 2022, all
outstanding Kirkland performance share units were converted to 324,308 Agnico PSUs in connection with the
Merger (Note 5). These are accounted for as cash-settled share based liabilities.
Compensation expense related to the PSU plan was $15.5 million in 2023 (2022 – $16.3 million). Compensation
expense related to the PSU plan is included in the production and general and administrative line items, as
applicable, in the consolidated statements of income.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
53
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
18. OTHER RESERVES
The following table sets out the movements in other reserves for the years ended December 31, 2023 and 2022:
Equity
securities
reserve
Cash flow
hedge
reserve
Total
Balance at December 31, 2021
$ 65,065
$(10,789)
$ 54,276
Net change in cash flow hedge reserve
–
2,301
2,301
Net change in fair value of equity securities
(85,583)
–
(85,583)
Balance at December 31, 2022
$(20,518)
$ (8,488)
$(29,006)
Net change in cash flow hedge reserve
–
1,176
1,176
Transfer of net loss on disposal of equity securities to retained earnings
2,045
–
2,045
Net change in fair value of equity securities
(73,170)
–
(73,170)
Balance at December 31, 2023
$(91,643)
$ (7,312)
$(98,955)
The cash flow hedge reserve represents the settlement of an interest rate derivative related to the Senior Notes issued in
2020. The reserve will be amortized over the term of the Notes. Amortization of the reserve is included in the finance costs
line item in the consolidated statements of income.
19. REVENUES FROM MINING OPERATIONS AND TRADE RECEIVABLES
Agnico Eagle is a gold mining company with mining operations in Canada, Australia, Finland and Mexico. The Company
earns a significant proportion of its revenues from the production and sale of gold in both dore bar and concentrate form.
The remainder of revenue and cash flow is generated by the production and sale of by-product metals. The revenue from
by-product metals is primarily generated by production at the LaRonde mine in Canada (silver, zinc and copper) and the
Pinos Altos mine in Mexico (silver).
The cash flow and profitability of the Company’s operations are significantly affected by the market price of gold and, to a
lesser extent, silver, zinc and copper. The prices of these metals can fluctuate significantly and are affected by numerous
factors beyond the Company’s control.
During the year ended December 31, 2023, three customers each contributed more than 10.0% of total revenues from
mining operations for a combined total of approximately 71.7% of revenues from mining operations. However, because
gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a
limited number of customers for the sale of its product.
54
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
19. REVENUES FROM MINING OPERATIONS AND TRADE RECEIVABLES (Continued)
The following table sets out sales to individual customers that exceeded 10.0% of revenues from mining operations:
Year Ended December 31,
2023
2022
Customer 1
$1,858,921
$1,468,563
Customer 2
1,574,546
1,159,679
Customer 3
1,319,800
948,686
Customer 4(i)
–
760,648
Customer 5(i)
–
645,088
Total sales to customers exceeding 10.0% of revenues from mining operations
$4,753,267
$4,982,664
Percentage of total revenues from mining operations
71.7%
86.8%
Note:
(i)
Sales to these customers did not exceed 10% of revenues from mining operations for the year ended December 31, 2023.
Trade receivables are recognized once the transfer of control for the metals sold has occurred and reflect the amounts
owing to the Company in respect of its sales of concentrates to third parties prior to the satisfaction in full of the payment
obligations of the third parties. As at December 31, 2023, the Company had $8.1 million (December 31, 2022 –
$8.6 million) in receivables relating to provisionally priced concentrate sales.
The Company has recognized the following amounts relating to revenue in the consolidated statements of income:
Year Ended December 31,
2023
2022
Revenue from contracts with customers
$6,628,073
$5,742,768
Provisional pricing adjustments on concentrate sales
(1,164)
(1,606)
Total revenues from mining operations
$6,626,909
$5,741,162
The following table sets out the disaggregation of revenue by metal:
Year Ended December 31,
2023
2022
Revenues from contracts with customers:
Gold
$6,539,273
$5,656,741
Silver
63,666
54,944
Zinc
6,557
10,880
Copper
18,577
20,203
Total revenues from contracts with customers
$6,628,073
$5,742,768
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
55
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
19. REVENUES FROM MINING OPERATIONS AND TRADE RECEIVABLES (Continued)
In 2023, precious metals (gold and silver) accounted for 99.6% of Agnico Eagle’s revenues from mining operations
(2022 – 99.5%). The remaining revenues from mining operations consisted of net by-product metal revenues from non-
precious metals.
20. CAPITAL AND FINANCIAL RISK MANAGEMENT
The Company’s activities expose it to a variety of financial risks: market risk (including interest rate risk, commodity price
risk and foreign currency risk), credit risk and liquidity risk. The Company’s overall risk management policy is to support
the delivery of the Company’s financial targets while minimizing the potential adverse effects on the Company’s
performance.
Risk management is carried out by a centralized treasury department under policies approved by the Board. The
Company’s financial activities are governed by policies and procedures and its financial risks are identified, measured and
managed in accordance with its policies and risk tolerance.
A)
Market Risk
Market risk is the risk that changes in market factors, such as interest rates, commodity prices and foreign
exchange rates, will affect the value of Agnico Eagle’s financial instruments. The Company can choose to either
accept market risk or mitigate it through the use of derivatives and other economic hedging strategies.
i.
Interest Rate Risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate as
a result of changes in market interest rates. The Company’s exposure to the risk of changes in market
interest rates relates primarily to the Company’s long-term debt obligations that have floating interest rates.
There is no significant impact on income before income and mining taxes or on equity of a 1.0% increase
or decrease in interest rates, based on financial instruments in place as at December 31, 2023.
ii.
Commodity Price Risk
a.
Metal Prices
Agnico Eagle’s revenues from mining operations and net income are sensitive to metal prices. Changes
in the market price of gold may be attributed to factors such as demand, global mine production levels,
central bank purchases and sales and investor sentiment. Changes in the market prices of by-product
metals (silver, zinc and copper) may be attributed to factors such as demand and global mine
production levels.
In order to mitigate the impact of fluctuating by-product metal prices, the Company occasionally enters
into derivative financial instrument contracts under its Board-approved Risk Management Policies and
Procedures. The Company has a long-standing policy of no long-term forward gold sales. However, the
policy does allow the Company to use other economic hedging strategies, where appropriate, to mitigate
by-product metal pricing risks. The Company’s policy does not allow speculative trading. As at
December 31, 2023, there were no metal derivative positions.
b.
Fuel
To mitigate the risks associated with fluctuating diesel fuel prices, the Company uses derivative financial
instruments as economic hedges of the price risk on a portion of its diesel fuel costs (see Note 21 for
further details on the Company’s derivative financial instruments).
56
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
20. CAPITAL AND FINANCIAL RISK MANAGEMENT (Continued)
iii.
Foreign Currency Risk
The Company receives payment for all of its metal sales in US dollars and pays most of its operating and
capital costs in Canadian and Australian dollars, Euros, or Mexican pesos. This gives rise to significant
foreign currency risk exposure. The Company enters into currency economic hedging transactions under
the Board-approved Foreign Exchange Risk Management Policies and Procedures to hedge part of its
foreign currency exposure. The policy does not permit the hedging of translation exposure (that is, the gains
and losses that arise from the accounting translation of non-US dollar denominated assets and liabilities
into US dollars), which does not give rise to cash exposure. The Company’s foreign currency derivative
financial instrument strategy includes (but is not limited to) the use of purchased puts, sold calls, collars
and forwards that are not held for speculative purposes (see Note 21 for further details on the Company’s
derivative financial instruments).
The following table sets out the translation impact, based on financial instruments in place as at
December 31, 2023, on income before income and mining taxes and on equity for the year ended
December 31, 2023 of a 10.0% weakening in the exchange rate of the US dollar relative to the Canadian
dollar, Australian dollar, Euro and Mexican peso, with all other variables held constant. A 10.0%
strengthening of the US dollar against the foreign currencies would have had the equal but opposite effect
as at December 31, 2023.
Positive (negative) impact on
Income before Income and
Mining Taxes and on Equity
Canadian dollar
$(55,097)
Australian dollar
$ (3,361)
Euro
$(10,891)
Mexican peso
$
970
B)
Credit Risk
Credit risk is the risk that a third party might fail to fulfill its obligations under the terms of a financial instrument.
Credit risk arises from cash and cash equivalents, short-term investments, trade receivables, loan receivable
and certain derivative financial instruments. The Company holds its cash and cash equivalents and short-term
investments in highly rated financial institutions which it believes results in a low level of credit risk. For trade
receivables and derivative financial instruments, historical levels of default have been negligible, which the
Company believes results in a low level of credit risk. The Company mitigates credit risk by dealing with what it
believes to be credit-worthy counterparties and limiting concentration risk. For derivative financial instrument
liabilities, the Company assumes no credit risk when the fair value of an instrument is negative. The maximum
exposure to credit risk is equal to the carrying amount of the instruments as follows:
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
57
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
20. CAPITAL AND FINANCIAL RISK MANAGEMENT (Continued)
As at
December 31,
2023
As at
December 31,
2022
Cash and cash equivalents
$338,648
$658,625
Trade receivables (Notes 6 and 19)
8,148
8,579
Fair value of derivative financial instruments (Notes 6 and 21)
50,786
8,774
Short-term investments (Note 8A)
10,199
9,896
Non-current loans receivable (Note 8B)
10,108
3,939
Total
$417,889
$689,813
C)
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. The Company monitors its risk of a
shortage of funds by monitoring its credit rating and projected cash flows taking into account the maturity dates
of existing debt and other payables. The Company manages exposure to liquidity risk by maintaining cash
balances, having access to undrawn credit facilities and access to public debt markets. Contractual maturities
relating to lease obligations are set out in Note 13 and contractual maturities relating to long-term debt are set
out in Note 14. Other financial liabilities have maturities within one year of December 31, 2023.
D)
Capital Risk Management
The Company’s primary capital management objective is to maintain an optimal capital structure to support
current and long-term business activities and to provide financial flexibility in order to maximize value for equity
holders.
Agnico Eagle’s capital structure comprises a mix of lease financing, long-term debt and total equity as follows:
As at
December 31,
2023
As at
December 31,
2022
Lease obligations (Note 13)
$
161,548
$
151,342
Long-term debt (Note 14)
1,843,086
1,342,070
Total equity
19,422,915
16,241,345
Total
$21,427,549
$17,734,757
The Company manages its capital structure and makes adjustments to it based on changes in economic
conditions and the requirements of financial covenants. To effectively manage its capital requirements, Agnico
Eagle has in place a rigorous planning, budgeting and forecasting process with the goal of ensuring it has the
appropriate liquidity to meet its operating and growth objectives. The Company has the ability to adjust its capital
structure by various means.
See Note 14 for details related to Agnico Eagle’s compliance with its long-term debt covenants.
58
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
20. CAPITAL AND FINANCIAL RISK MANAGEMENT (Continued)
E)
Changes in liabilities arising from financing activities
As at
December 31,
2022
Changes from
Financing
Cash Flows
Foreign
Exchange
Other(i)
As at
December 31,
2023
Long-term debt
$1,342,070
498,958
–
2,058
$1,843,086
Lease obligations
151,342
(47,589)
7,151
50,644
161,548
Total liabilities from financing activities
$1,493,412
451,369
7,151
52,702
$2,004,634
Note:
(i)
Includes the amortization of deferred financing costs on long-term debt reflected in finance costs and lease obligation additions.
21. DERIVATIVE FINANCIAL INSTRUMENTS
Currency Risk Management
The Company uses foreign exchange economic hedges to reduce the variability in expected future cash flows arising from
changes in foreign currency exchange rates. The Company is primarily exposed to currency fluctuations relative to the US
dollar as a significant portion of the Company’s operating costs and capital expenditures are denominated in foreign
currencies, primarily the Canadian dollar, the Australian dollar, the Euro and the Mexican peso. These potential currency
fluctuations increase the volatility of, and could have a significant impact on, the Company’s production costs and capital
expenditures. The economic hedges relate to a portion of the foreign currency denominated cash outflows arising from
foreign currency denominated expenditures.
As at December 31, 2023, the Company had outstanding derivative contracts related to $3,324.7 million of 2024 and
2025 expenditures (December 31, 2022 – $2,907.9 million). The Company recognized mark-to-market adjustments in
the (gain) loss on derivative financial instruments line item in the consolidated statements of income. The Company did
not apply hedge accounting to these arrangements.
Mark-to-market gains and losses related to foreign exchange derivative financial instruments are recorded at fair value
based on broker-dealer quotations corroborated by option pricing models that utilize period-end forward pricing of the
applicable foreign currency to calculate fair value.
The Company’s other foreign currency derivative strategies in 2023 and 2022 consisted mainly of writing US dollar call
options with short maturities to generate premiums that would, in essence, enhance the spot transaction rate received
when exchanging US dollars for foreign currencies. All of these derivative transactions expired prior to period-end such
that no derivatives were outstanding as at December 31, 2023 or December 31, 2022. The call option premiums were
recognized in the (gain) loss on derivative financial instruments line item in the consolidated statements of income.
Commodity Price Risk Management
To mitigate the risks associated with fluctuating diesel fuel prices, the Company uses derivative financial instruments as
economic hedges of the price risk on a portion of diesel fuel costs associated primarily with its Canadian operations’ diesel
fuel exposure. There were derivative financial instruments outstanding as at December 31, 2023 relating to 15.0 million
gallons of heating oil (December 31, 2022 – 19.0 million). The related mark-to-market adjustments prior to settlement
were recognized in the (gain) loss on derivative financial instruments line item in the consolidated statements of income.
The Company did not apply hedge accounting to these arrangements.
Mark-to-market gains and losses related to heating oil derivative financial instruments are based on broker-dealer
quotations that utilize period-end forward pricing to calculate fair value.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
59
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
21. DERIVATIVE FINANCIAL INSTRUMENTS (Continued)
Share Purchase Warrants
The Company holds warrants to acquire equity securities of certain issuers in the mining industry. These warrants are not
part of the Company’s core operations, and accordingly, gains and losses from these investments are not representative of
the Company’s performance during the year.
The following table sets out a summary of the amounts recognized in the (gain) loss on derivative financial instruments line
item in the consolidated statements of income.
Year Ended December 31,
2023
2022
Premiums realized on written foreign exchange call options
$
(181)
$
(859)
Unrealized loss on warrants
11,198
9,820
Realized loss on currency and commodity derivatives
33,455
22,175
Unrealized (gain) loss on currency and commodity derivatives
(112,904)
59,556
(Gain) loss on derivative financial instruments
$ (68,432)
$90,692
22. OTHER EXPENSES
The following table sets out amounts recognized in the other expenses line item in the consolidated statements of income:
Year Ended December 31,
2023
2022
Loss on disposal of property, plant and mine development (Note 9)
$26,759
$
8,754
Interest income
(7,959)
(9,820)
Temporary suspension and other costs due to COVID-19
–
11,275
Acquisition costs (Note 5)
21,503
95,035
Environmental remediation
2,712
10,417
Other costs
23,254
25,647
Total other expenses
$66,269
$141,308
During the year ended December 31, 2023, the Company incurred $18.4 million of transaction costs in connection with
the Yamana Transaction (Note 5) and $3.1 million of transaction costs in connection with the acquisition of the San
Nicolás project (Note 5). During the year ended December 31, 2022, the Company incurred $95.0 million of transaction
and severance costs in connection with the Merger (Note 5).
In the year ended December 31, 2023, other costs comprised primarily of $15.3 million related to ore sorting projects and
$5.8 million in payments to First Nations communities. In the year ended December 31, 2022, other costs comprised
primarily of $6.7 million in write-offs of prepaid deposits and supplies, $6.5 million in losses incurred on an insurance
claim related to a fire at Meadowbank, $3.5 million in legal claims and $2.3 million in property tax reassessments.
60
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
23. SEGMENTED INFORMATION
The Company identifies its operating segments as those operations whose operating results are reviewed by the Chief
Operating Decision Maker (“CODM”), the Chief Executive Officer, for the purpose of allocating resources and assessing
performance. Each of the Company’s operating mines and significant projects are considered to be separate operating
segments. Reportable operating segments represent more than 10.0% of the combined revenue from mining operations,
income or loss or total assets of all operating segments. Certain operating segments that do not meet the quantitative
thresholds are still disclosed where the Company believes that the information is useful. The CODM also reviews segment
income (defined as revenues from mining operations less production costs, exploration and corporate development
expenses and impairment losses and reversals) on a mine-by-mine basis. Revenues from mining operations and
production costs for the reportable segments are reported net of intercompany transactions. Corporate and other assets
and specific income and expense items are not allocated to reportable segments.
The Company has adjusted its operating segments as a result of the Yamana Transaction on March 31, 2023 (Note 5).
The Company has reclassified exploration expenses from the Canadian Malartic Complex segment to the Exploration
segment and comparative information has been restated to reflect this change.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
61
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
23. SEGMENTED INFORMATION (Continued)
Year Ended December 31, 2023
Revenues from
Mining
Operations
Production
Costs
Exploration and
Corporate
Development
Impairment
Loss
Segment
Income
(Loss)
LaRonde mine
$ 483,065
$ (218,020)
$
–
$
–
$
265,045
LaRonde Zone 5 mine
130,711
(81,624)
–
–
49,087
Canadian Malartic complex
1,124,480
(465,814)
–
–
658,666
Goldex mine
272,801
(112,022)
–
–
160,779
Meliadine mine
697,431
(343,650)
–
–
353,781
Meadowbank complex
858,209
(524,008)
–
–
334,201
Kittila mine
448,719
(205,857)
–
–
242,862
Detour Lake mine
1,262,839
(453,498)
–
–
809,341
Macassa mine
431,827
(155,046)
–
(675,000)
(398,219)
Fosterville mine
552,468
(131,298)
–
–
421,170
Pinos Altos mine
212,876
(145,936)
–
(112,000)
(45,060)
La India mine
151,483
(96,490)
–
–
54,993
Exploration
–
–
(215,781)
–
(215,781)
Segment totals
$6,626,909
$(2,933,263)
$(215,781)
$(787,000)
$ 2,690,865
Total segments income
$ 2,690,865
Corporate and other:
Amortization of property, plant and mine development
(1,491,771)
General and administrative
(208,451)
Finance costs
(130,087)
Gain on derivative financial instruments
68,432
Foreign currency translation gain
328
Care and maintenance
(47,392)
Revaluation gain
1,543,414
Other expenses
(66,269)
Income before income and mining taxes
$ 2,359,069
62
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
23. SEGMENTED INFORMATION (Continued)
Year Ended December 31, 2022
Revenues from
Mining
Operations
Production
Costs
Exploration and
Corporate
Development
Impairment
Loss
Segment
Income
(Loss)
LaRonde mine
$ 553,931
$ (213,393)
$
–
$
–
$
340,538
LaRonde Zone 5 mine
129,569
(72,096)
–
–
57,473
Canadian Malartic complex
575,938
(235,735)
–
–
340,203
Goldex mine
250,512
(103,830)
–
–
146,682
Meliadine mine
677,713
(318,141)
–
–
359,572
Meadowbank complex
645,021
(442,681)
–
–
202,340
Kittila Mine
407,669
(210,661)
–
–
197,008
Detour Lake mine
1,188,741
(489,703)
–
–
699,038
Macassa mine
327,028
(129,774)
–
–
197,254
Fosterville mine
645,371
(204,649)
–
–
440,722
Pinos Altos mine
199,830
(144,489)
–
–
55,341
Creston Mascota mine
4,476
(1,943)
–
–
2,533
La India mine
135,219
(76,226)
–
(55,000)
3,993
Exploration
144
–
(271,117)
–
(270,973)
Segment totals
$5,741,162
$(2,643,321)
$(271,117)
$(55,000)
$ 2,771,724
Total segments income
$ 2,771,724
Corporate and other:
Amortization of property, plant and mine development
(1,094,691)
General and administrative
(220,861)
Finance costs
(82,935)
Loss on derivative financial instruments
(90,692)
Foreign currency translation gain
16,081
Care and maintenance
(41,895)
Other expenses
(141,308)
Income before income and mining taxes
$ 1,115,423
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
63
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
23. SEGMENTED INFORMATION (Continued)
The following table sets out revenues from mining operations by geographic area(i):
Year Ended December 31,
2023
2022
Canada
$5,261,363
$4,348,597
Australia
552,468
645,371
Mexico
364,359
339,525
Finland
448,719
407,669
Total revenues from mining operations
$6,626,909
$5,741,162
Note:
(i)
Based on the location of the mine from which the product originated.
The following table sets out total assets by segment:
Total Assets as at
December 31, 2023
December 31, 2022
LaRonde mine
$ 1,031,331
$
987,821
LaRonde Zone 5 mine
133,531
115,404
Canadian Malartic complex
6,898,179
1,582,406
Goldex mine
401,573
339,390
Meliadine mine
2,356,234
2,323,873
Meadowbank complex
1,346,911
1,387,335
Kittila mine
1,685,400
1,647,353
Detour Lake mine
9,353,435
9,120,416
Macassa mine
1,638,864
2,266,891
Fosterville mine
976,221
1,224,645
Pinos Altos mine
406,834
463,823
Creston Mascota mine
3,819
4,864
La India mine
113,736
150,967
Exploration
1,253,334
821,718
Corporate and other
1,085,547
1,057,902
Total assets
$28,684,949
$23,494,808
64
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
23. SEGMENTED INFORMATION (Continued)
The following table sets out non-current assets by geographic area:
As at
December 31, 2023
As at
December 31, 2022
Canada
$23,049,670
$18,068,878
Australia
1,174,789
1,148,932
Mexico
774,154
600,954
Finland
1,471,378
1,469,917
Sweden
14,970
14,970
United States
8,836
11,098
Total non-current assets
$26,493,797
$21,314,749
The following table sets out the carrying amount of goodwill by segment for the years ended December 31, 2023 and
December 31, 2022:
Detour
Macassa
Canadian
Malartic Complex
Exploration
Total
Cost:
Balance at December 31, 2022
$1,215,444
$ 420,887
$ 597,792
$60,000
$2,294,123
Derecognition of previously held interest in joint
operation
–
–
(597,792)
–
(597,792)
Acquisition (Note 5)
–
–
2,882,228
–
2,882,228
Balance at December 31, 2023
$1,215,444
$ 420,887
$2,882,228
$60,000
$4,578,559
Accumulated impairment:
Balance at December 31, 2022
$
–
$
–
$ (250,000)
$
–
$ (250,000)
Derecognition of previously held interest in joint
operation
–
–
250,000
–
250,000
Impairment of goodwill (Note 24)
–
(420,887)
–
–
(420,887)
Balance at December 31, 2023
$
–
$(420,887)
$
–
$
–
$ (420,887)
Carrying amount at December 31, 2022
$1,215,444
$ 420,887
$ 347,792
$60,000
$2,044,123
Carrying amount at December 31, 2023
$1,215,444
$
–
$2,882,228
$60,000
$4,157,672
The following table sets out capital expenditures by segment:
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
65
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
23. SEGMENTED INFORMATION (Continued)
Year Ended December 31,
2023
2022
LaRonde mine
$ 122,917
$ 152,584
LaRonde Zone 5 mine
38,930
22,893
Canadian Malartic complex
263,151
195,413
Goldex mine
87,001
61,401
Meliadine mine
191,011
155,100
Meadowbank complex
128,063
141,451
Kittila mine
82,301
106,369
Detour Lake mine
422,668
394,132
Macassa mine
146,259
122,473
Fosterville mine
87,439
94,712
Pinos Altos mine
36,498
53,270
La India mine
266
16,391
Exploration
27,316
14,332
Corporate and other
20,309
7,716
Total capital expenditures
$1,654,129
$1,538,237
24. IMPAIRMENT
Impairment of Long Lived Assets
Recoverable amounts are determined on the basis of fair value less costs to dispose (“FVLCD”) and are calculated by
discounting the estimated future net cash flows of the respective mines and certain exploration projects within the
respective CGUs. Certain mineralization outside of the discounted cashflow models is calculated by reference to
comparable market transactions. The discounted cash flow approach uses significant unobservable inputs and is therefore
considered a Level 3 fair value measurement under the fair value hierarchy. The key assumptions used in this assessment
are consistent with the Company’s testing of goodwill impairment, as listed below.
Pinos Altos
In the fourth quarter of 2023, the Company determined that there was an indicator of impairment at the Pinos Altos CGU
primarily due to an increase in its carrying value, increasing costs due to inflation, additional ground support required at
the underground mine and the strengthening of the Mexican peso. The recoverable amount was calculated to be less than
the carrying amount and an impairment loss of $112.0 million ($73.4 million net of tax) was recognized against the
property, plant and mine development costs. After giving effect to the impairment, the carrying value of the Pinos Altos
CGU was $299.5 million, as at December 31, 2023.
66
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
24. IMPAIRMENT (Continued)
La India
In the fourth quarter of 2022, the Company determined that there was an indicator of impairment at the La India CGU
primarily due to the depletion of the mineral reserves and resources as the project nears the end of its life, combined with
rising input costs due to inflationary pressures and higher estimated costs to build and operate adjacent exploration
projects. As at December 31, 2022, an impairment of $55.0 million ($52.7 million net of tax) was recognized on the
property, plant and mine development costs at the La India CGU. After giving effect to the impairment, the carrying value
of the La India CGU was $134.3 million, as at December 31, 2022.
Goodwill impairment tests
In the fourth quarter of 2023, the Company performed the annual goodwill impairment test as required by IAS 36. The
estimated recoverable amount of each CGU was calculated under the FVLCD basis and compared to the carrying amount.
The estimated recoverable amounts were calculated by discounting the estimated future net cash flows over the estimated
life of the mine and, in certain circumstances, by reference to comparable market transactions.
Macassa
The recoverable amount as at December 31, 2023 for the Macassa CGU was calculated to be less than the carrying
amount primarily due to an increase in its carrying value. As at December 31, 2023, an impairment loss of $675.0 million
($594.0 million net of tax) was recognized, of which $420.9 million was recognized against goodwill and $254.1 million
($173.2 million net of tax) was recognized against property, plant and mine development costs. After giving effect to the
impairment, the carrying value of the Macassa CGU was $1,595.3 million, as at December 31, 2023.
Key Assumptions
The determination of the recoverable amount within level 3 of the fair value hierarchy, includes the following key applicable
assumptions:
• Discount rates were based on each asset group’s weighted average cost of capital (“WACC”), of which the two main
components are the cost of equity and the after-tax cost of debt. Cost of equity was calculated based on the capital
asset pricing model, incorporating the risk-free rate of return based on local government marketable bond yields as
at the valuation date, the Company’s beta coefficient adjustment to the market equity risk premium based on the
volatility of the Company’s return in relation to that of a comparable market portfolio, plus a size premium and
Company-specific risk factors for each mine or project. Cost of debt was determined by applying an appropriate
market indication of the Company’s borrowing capabilities and the corporate income tax rate applicable to each
asset group’s jurisdiction;
• Gold price estimates were determined using forecasts of future prices prepared by industry analysts, which were
available as at or close to the valuation date;
• Foreign exchange estimates are based on a combination of currency forward curves and estimates that reflect the
outlooks of major global financial institutions;
• Estimated production levels, and future operating and capital costs are based on detailed life of mine plans and
also take into account management’s expected development plans;
• Estimates of the fair value attributable to mineralization in excess of life of mine plans are based on various
assumptions, including determination of the appropriate valuation method for mineralization and ascribing
anticipated economics to mineralization in cases where only limited economic study has been completed; and
• Market participants may utilize a net asset value (“NAV”) multiple when companies trade at a market capitalization
greater than the net present value (“NPV”) of their expected cash flows. The NAV multiple takes into account a
variety of additional value factors such as the exploration potential of the mineral property to find and produce
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
67
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
24. IMPAIRMENT (Continued)
more metal than what is currently included in the LOM plan or reserve and resource estimates and the benefit of
gold price optionality. The Company applied NAV multiples to the NPV of CGU’s that it judged to be appropriate.
The range of key assumptions used in the impairment tests are summarized as set out below:
As at December 31,
2023
2022
Gold price per oz
$1,750 – $1,950
$1,700 – $1,800
WACC
6.3% – 8.9%
5.8% – 9.7%
NAV multiple
1.00x – 1.66x
1.06x – 1.21x
Foreign exchange rates
US$0.77:C$1.00 to US$0.80:C$1.00
US$0.75:C$1.00 to US$0.80:C$1.00
Inflation
2.0%
2.0%
25. INCOME AND MINING TAXES
Income and mining taxes expense is made up of the following components:
Year Ended December 31,
2023
2022
Current income and mining taxes
$365,721
$277,076
Deferred income and mining taxes:
Origination and reversal of temporary differences
52,041
168,098
Total income and mining taxes expense
$417,762
$445,174
68
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
25. INCOME AND MINING TAXES (Continued)
The income and mining taxes expense is different from the amount that would have been calculated by applying the
Canadian statutory income tax rate as a result of the following:
Year Ended December 31,
2023
2022
Combined federal and composite provincial tax rates
26%
26%
Expected income tax expense at statutory income tax rate
$ 613,358
$290,010
Increase (decrease) in income and mining taxes resulting from:
Mining taxes
101,433
121,404
Impact of foreign tax rates and change in future tax rates
23,460
(5,106)
Permanent differences
(300,567)
32,231
Impact of foreign exchange on deferred income tax balances
(45,412)
6,635
Other
25,490
–
Total income and mining taxes expense
$ 417,762
$445,174
The following table sets out the components of Agnico Eagle’s deferred income tax assets:
As at
December 31,
2023
As at
December 31,
2022
Mining properties
$28,388
$(26,627)
Net operating loss carry forwards
–
13,466
Mining taxes
6,098
1,995
Reclamation provisions and other liabilities
19,310
22,740
Total deferred income tax assets
$53,796
$ 11,574
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
69
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
25. INCOME AND MINING TAXES (Continued)
The following table sets out the components of Agnico Eagle’s deferred income and mining tax liabilities:
As at
December 31,
2023
As at
December 31,
2022
Mining properties
$4,960,289
$4,115,221
Net operating and capital loss carry forwards
(77,247)
(49,394)
Mining taxes
308,157
195,249
Reclamation provisions and other liabilities
(217,928)
(279,201)
Total deferred income and mining tax liabilities
$4,973,271
$3,981,875
Changes in net deferred tax assets and liabilities for the years ended December 31, 2023 and 2022 are as follows:
As at
December 31,
2023
As at
December 31,
2022
Net deferred income and mining tax liabilities – beginning of year
$3,970,301
$1,089,520
Income and mining tax impact recognized in net income
52,041
168,109
Income tax impact recognized in other comprehensive income and equity
984
(11,169)
Deferred income tax liability acquired on Yamana Transaction (Note 6)
896,149
–
Deferred income tax liability acquired on the purchase of Kirkland (Note 6)
–
2,723,841
Net deferred income and mining tax liabilities – end of year
$4,919,475
$3,970,301
The Company operates in different jurisdictions and, accordingly, it is subject to income and other taxes under the various
tax regimes in the countries in which it operates. The tax rules and regulations in many countries are highly complex and
subject to interpretation. The Company may be subject, in the future, to a review of its historic income and other tax filings
and, in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application
of certain tax rules and regulations to the Company’s business conducted within the country involved.
The deductible temporary differences in respect of which a deferred tax asset has not been recognized in the consolidated
balance sheets are as follows:
As at
December 31,
2023
As at
December 31,
2022
Other deductible temporary differences
$1,485,481
$1,012,924
The Company has $433.5 million (2022 – $962.0 million) of taxable temporary differences associated with its investments
in subsidiaries for which deferred income tax has not been recognized, as the Company is able to control the timing of the
reversal of the taxable temporary differences and it is probable that they will not reverse in the foreseeable future.
The Company is subject to taxes in Canada, Australia, Finland and Mexico, each with varying statutes of limitations. Prior
taxation years generally remain subject to examination by applicable taxation authorities.
70
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
25. INCOME AND MINING TAXES (Continued)
The Company is within the scope of the OECD Pillar Two model rules. As at December 31, 2023, Pillar Two legislation was
enacted in some of the jurisdictions in which the Company’s entities are incorporated. The Pillar Two legislation in these
jurisdictions came into effect from January 1, 2024. Since the Pillar Two legislation was not effective at the reporting date,
the Company has no related current tax exposure.
The Company applies the exception to recognizing and disclosing information about deferred tax assets and liabilities
related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
Under the legislation, the Company is liable to pay a top-up tax for the difference between their Global Anti-Base Erosion
effective tax rate per jurisdiction and the 15% minimum rate. No material top-up tax is expected for the Company for fiscal
years after December 31, 2023.
26. EMPLOYEE BENEFITS AND COMPENSATION OF KEY MANAGEMENT PERSONNEL
During the year ended December 31, 2023, employee benefits expense recognized in the consolidated statements of
income was $1,269.6 million (2022 – $1,113.9 million). In 2023 and 2022, there were no related party transactions other
than compensation of key management personnel. Key management personnel include the members of the Board and
the senior leadership team.
The following table sets out the compensation of key management personnel:
Year Ended December 31,
2023
2022
Salaries, short-term incentives and other benefits
$14,273
$28,841
Post-employment benefits
2,474
2,198
Share-based payments
28,355
26,567
Total
$45,102
$57,606
27. COMMITMENTS AND CONTINGENCIES
As part of its ongoing business and operations, the Company has been required to provide assurance in the form of letters
of credit for environmental and site restoration costs, custom credits, government grants and other general corporate
purposes. As at December 31, 2023, the total amount of these guarantees was $991.7 million.
Certain of the Company’s properties are subject to royalty arrangements. Set out below are the Company’s most significant
royalty arrangements related to operating mines:
• The Company has a royalty agreement with the Finnish government relating to the Kittila mine. Starting 12 months
after the Kittila mine’s operations commenced, the Company has been required to pay 2.0% net smelter return
royalty, defined as revenue less processing costs.
• The Company is committed to pay a royalty on production or metal sales from certain Canadian Malartic properties
in Quebec, Canada. The type of royalty agreements include, but are not limited to, net smelter return royalties,
with percentages ranging from 1.5% to 5.0%.
• The Company is committed to pay a 5.0% net profits interest royalty on production from the Terrex property at the
LaRonde mine in Quebec, Canada.
• The Company is committed to pay a 2.0% net smelter return royalty on the metal sales from the LaRonde Zone
5 mine in Quebec, Canada.
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
71
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
27. COMMITMENTS AND CONTINGENCIES (Continued)
• The Company is committed to pay a 1.2% net smelter return royalty on sales from the Meliadine mine in Nunavut,
Canada.
• The Company is committed to two royalty arrangements on production from the Amaruq satellite deposit at the
Meadowbank Complex in Nunavut, Canada; a 1.4% net smelter return royalty and a 12.0% net profits interest
royalty.
• The Company is committed to three royalty arrangements on production from the Hope Bay property in Nunavut,
Canada; two 1% net smelter return royalties and a 12% net profit interest royalty.
• The Company is committed to pay a royalty on production from certain properties in Mexico. The type of royalty
agreements include, but are not limited to, net smelter return royalties, with percentages ranging from 2.5% to
3.5% at the Pinos Altos and Creston Mascota mines, and with percentages ranging from 2.0% to 3.0% at the
La India mine.
• The Company is committed to various royalties on production from the Macassa mine in Ontario, Canada. The type
of royalty agreements include, but are not limited to, net smelter return royalties, with percentages ranging from
0.5% to 1.5%.
• The Company is committed to various royalty arrangements at the Detour mine in Ontario, Canada, including a
0.5% and 2.0% net smelter return royalty on the gold sales and royalties based on gold price and annual revenues
payable to relevant First Nations communities.
• The Company is committed to two royalty agreements on gold sales from the Fosterville mine in Victoria, Australia,
comprising of a 2% net smelter return royalty and a 2.75% net smelter return royalty payable to the Victorian
government.
The Company also has certain payments associated with First Nation collaboration agreements at the Canadian Malartic
and LaRonde complexes.
The Company regularly enters into various earn-in and shareholder agreements, often with commitments to pay net
smelter return and other royalties.
The Company had the following contractual commitments as at December 31, 2023, of which $115.7 million related to
capital expenditures:
Contractual
Commitments
2024
$159,078
2025
18,747
2026
20,327
2027
6,452
2028
4,340
Thereafter
7,063
Total
$216,007
In addition to the above, the Company has $290.0 million of committed subscription proceeds related to the San Nicolás
project. (Note 5).
72
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
28. ONGOING LITIGATION
Kirkland
Effective as of February 8, 2022, the Company acquired all the issued and outstanding shares of Kirkland in the Merger
(Note 5). Kirkland had previously disclosed the existence of certain contingent liabilities relating to outstanding litigation
matters involving Kirkland and/or its wholly owned subsidiaries, some of which were amalgamated as part of a pre-closing
corporate reorganization completed in early February 2022. One litigation matter remains outstanding as at December 31,
2023. Management believes that the claim has no merit and intends to defend it vigorously. No amounts have been
recorded for any potential liability and the Company believes that the likelihood of loss is undeterminable at this point.
Kirkland is the defendant in two putative class action complaints filed on June 29, 2020 and July 17, 2020 (and
subsequently amended) in the United States District Court for the Southern District of New York (the “Court”). The
complaints allege that during the period from January 8, 2018 to November 25, 2019, Kirkland and Kirkland’s former
chief executive officer violated the United States securities laws by misrepresenting or failing to disclose material
information regarding Kirkland’s acquisition of Detour Gold Corporation, which closed in January 2020.
Following motions filed by both individual complainants, the Court entered an order on September 24, 2020 appointing
one lead plaintiff and one lead counsel. On January 22, 2021, Kirkland filed a motion to dismiss. On September 30, 2021,
the Court dismissed certain of the plaintiff’s claims against Kirkland. Since then, the litigation has been proceeding
through the customary litigation processes including discovery and class certification, which was heard in early
October 2023, and no decision has been issued yet. The Company continues to believe that the one outstanding claim is
without merit.
Kittila permits
In May 2020, the Regional State Administrative Agency of Northern Finland (the “RSAA”) granted Agnico Eagle Finland
Oy (“Agnico Finland”) environmental and water permits that allowed Agnico Finland to enlarge its second carbon-in-leach
(“CIL2”) tailings storage facility, expand the operations of the Kittila mine to 2.0 Mtpa and build a new discharge waterline.
The permits were subsequently appealed by a third party to the Vaasa Administrative Court (the “VAC”). In July 2022, the
appeals were granted, in part, with the result that the permits were returned for reconsideration to the RSAA.
In August 2022, Agnico Finland appealed the decisions of the VAC to the Supreme Administrative Court of Finland (the
“SAC”) and requested that the SAC restore the permits through an interim decision pending the ultimate result of Agnico
Finland’s appeal.
On November 1, 2022, the SAC issued an interim decision upholding the initial CIL2 tailings storage facility permit and
restoring permitted nitrogen emission levels for the year 2022. However, the SAC interim decision didn’t uphold the permit
for the expansion of the mine to 2.0 Mtpa. The VAC decision was valid until a final decision was issued by the SAC (see
below).
On October 27, 2023, the SAC issued a decision that restored Kittila’s operating permits. As a result, the environmental
and water permits granted to the Company in 2020 remain valid and production was able to continue at a rate of 2.0 Mtpa
in accordance with the permit. The decision of the SAC is not subject to further appeal.
29. SUBSEQUENT EVENTS
Dividends Declared
On February 15, 2024, Agnico Eagle announced that the Board approved the payment of a quarterly cash dividend of
$0.40 per common share (a total value of approximately $198.9 million), payable on March 15, 2024 to holders of record
of the common shares of the Company on March 1, 2024.
New Credit Facility
On February 12, 2024, the Company entered into the New Credit Facility with a group of financial institutions that provides
the Company a $2.0 billion unsecured revolving credit facility. On the same day, the Company drew $200.0 million on the
CONSOLIDATED FINANCIAL STATEMENTS AGNICO EAGLE
73
AGNICO EAGLE MINES LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(thousands of United States dollars, except share and per share amounts, unless otherwise indicated)
December 31, 2023
29. SUBSEQUENT EVENTS (Continued)
New Credit Facility and used the proceeds of such draw to repay the Old Credit Facility. The New Credit Facility matures
and all indebtedness thereunder is due and payable on February 12, 2029. The New Credit Facility is available in US
dollars through SOFR and base rate advances, or in Canadian dollars through CORRA and prime rate advances, priced at
the applicable rate plus a margin that ranges from 0.00% to 2.00%. The New Credit Facility also provides for the issuance
of letters of credit, priced at the applicable rate plus a margin that varies from 0.60% to 2.00%. The lenders under the
New Credit Facility are each paid a standby fee at a rate that ranges from 0.09% to 0.25% of the undrawn portion of the
New Credit Facility. In each case, the applicable margin or standby fees vary depending on the Company’s credit rating.
The Company’s payment and performance of its obligations under the New Credit Facility are not guaranteed by any of its
subsidiaries, however the Company must provide guarantees from certain of its subsidiaries if any existing indebtedness
of the Company benefits from guarantees and the Company no longer maintains an investment grade credit rating, or if
the Company incurs new indebtedness for borrowed money and provides guarantees of such new indebtedness from any
of its subsidiaries. The New Credit Facility contains customary covenants limiting certain actions of the Company and its
material subsidiaries, and customary events of default for a borrower with the Company’s credit profile. The Company is
also required to maintain a total net debt to capitalization ratio below a specified maximum value.
Amendment to the Term Loan Facility
Contemporaneous with the execution of the New Credit Facility, the Company amended and restated its $600.0 million
unsecured Term Loan Facility. The Term Loan Facility was amended to release the guarantees that had previously been
delivered by certain of the Company’s subsidiaries, to provide that guarantees may be required in the future under the
same conditions as noted above for the New Credit Facility, and to align the covenants, including the net debt to
capitalization ratio, and the events of default with the more favourable covenants and events of default under the New
Credit Facility. The Term Loan Facility matures and all indebtedness thereunder remains due and payable on April 21,
2025.
74
AGNICO EAGLE CONSOLIDATED FINANCIAL STATEMENTS
Auditors
Ernst & Young LLP
Solicitors
Davies Ward Philips & Vineberg LLP
(Toronto and New York)
Listings
New York Stock Exchange and
the Toronto Stock Exchange
Stock Symbol: AEM
Transfer Agent
Computershare Trust Company of Canada
1-800-564-6253
Investor Relations
(416) 947-1212
Shareholder Information
Annual Meeting of Shareholders
Friday, April 26, 2024 at 11:00 AM
Hybrid Format:
Arcadian Court
401 Bay Street
Simpson Tower, 8th Floor
Toronto, Ontario, Canada
M5H 2Y4
and online at:
https://meetnow.global/MFJPVMP
&RUSRUDWH+HDG2I¿FH
Agnico Eagle Mines Limited
145 King Street East, Suite 400
Toronto, Ontario, Canada
M5C 2Y7
(416) 947-1212
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