McFarlane Lake Mining Limited press release

AGNICO EAGLE REPORTS THIRD QUARTER 2024 RESULTS - RECORD FREE CASH FLOW FOR THE FOURTH CONSECUTIVE QUARTER; BALANCE SHEET STRENGTHENED BY FURTHER DEBT REDUCTION; WELL POSITIONED TO ACHIEVE GOLD PRODUCTION AND COST GUIDANCE; ONGOING EXPLORATION SUCCESS AT EXISTING OPERATIONS AND PIPELINE PROJECTS

2024-10-30

CSE - Canadian National Stock Exchange · Gold · Copper · Cobalt · Nickel · Arsenic · Canada

Canada NewsWire

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Stock Symbol: AEM (NYSE and TSX)

(All amounts expressed in U.S. dollars unless otherwise noted)

TORONTO , Oct. 30, 2024 /CNW/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the third quarter of 2024.

"We are excited to report record financial results for a fourth consecutive quarter. Our focus on operational performance, cost control and capital discipline has allowed us to deliver the leverage to record gold prices to our shareholders. This quarter we repaid $375 million of debt, increased our cash position and continued to provide strong returns to shareholders," said Ammar Al-Joundi , Agnico Eagle's President and Chief Executive Officer. "We remain focused on realizing the full potential of our assets through continuous improvement and by advancing our pipeline of projects and supplemental exploration program. Strong drill results this quarter continue to demonstrate significant exploration upside at several of our mines and key pipeline projects, including the extension of the East Gouldie deposit at Canadian Malartic and the expansion of high-grade mineralization at Patch 7 at Hope Bay," added Mr. Al-Joundi.

Third quarter 2024 highlights:

Solid quarterly gold production and cost performance – Payable gold production 1 was 863,445 ounces at production costs per ounce of $908 , total cash costs per ounce 2 of $921 and all-in sustaining costs ("AISC") per ounce 2 of $1,286 Continued to deliver reliable operating and cost performance – Gold production and costs in the third quarter of 2024 were in line with plan, driven by strong production in Nunavut and at Macassa and Fosterville . The Company's continued focus on operational efficiencies and cost optimization drove record quarterly throughput and mining rates at multiple sites Well positioned to achieve 2024 gold production, cost and capital expenditures guidance – The Company is tracking well to meet its gold production guidance for the full year 2024. Total cash costs per ounce, AISC per ounce and capital expenditures guidance for 2024 remain unchanged Record quarterly adjusted net income 3 – The Company reported quarterly net income of $567.1 million or $1.13 per share and adjusted net income of $572.6 million or $1.14 per share Record quarterly cash provided by operating activities and free cash flow – The Company generated record cash provided by operating activities of $1,084.5 million or $2.16 per share ( $1,027.5 million or $2.05 per share before changes in non-cash working capital balances 4 ) and free cash flow 4 of $620.4 million or $1.24 per share ( $563.4 million or $1.12 per share before changes in non-cash working capital balances 4 ) Strengthening financial position with further reduction of debt – The Company increased its cash position by $55.2 million to $977.2 million as at September 30, 2024 . The Company continued to reduce net debt 5 in the third quarter of 2024, repaying the $100.0 million 5.02% Series B Senior Notes at maturity and repaying $275.0 million of the $600.0 million unsecured term loan facility drawn in 2023. Total debt outstanding was $1,467.2 million as at September 30, 2024 . Year-to-date, net debt has been reduced by $1,014.4 million , from $1,504.4 million at the beginning of the year to $490.0 million as at September 30, 2024 Continued focus on shareholder returns – In the third quarter of 2024, the Company's Board of Directors declared a quarterly dividend of $0.40 per share. Additionally, the Company repurchased 362,343 common shares at an average share price of $82.86 for an aggregate of $30.0 million through its normal course issuer bid ("NCIB") Update on key value drivers and pipeline projects Detour Lake – In the third quarter of 2024, the Company advanced the site preparation for the underground project, including the completion of the pad that will host the surface infrastructure for the underground project and the removal of the overburden for the portal. Infill drilling into the high-grade corridor in the West Pit zone continued to confirm higher grades and a mineralized structure amenable to underground mining. Highlights include 22.5 grams per tonne ("g/t") gold over 12.9 metres at 490 metres depth and 15.0 g/t gold over 18.9 metres at 573 metres depth. Drilling into the West Extension zone to the west of current mineral resources saw highlights of 28.8 g/t gold over 3.6 metres at 570 metres depth and 11.7 g/t gold over 3.3 metres at 731 metres depth Odyssey mine at Canadian Malartic – In the third quarter of 2024, ramp development and shaft sinking activities progressed on schedule, reaching a depth of 873 metres and 839 metres, respectively, and the excavation of the temporary shaft loading station on level 64 was completed. Surface construction progressed as planned, with a focus on the service hoist and the operations complex. Recent exploration drilling continued to return good results in the eastern extension of the East Gouldie deposit up to 760 metres east of current mineral resources, including 3.0 g/t gold over 51.5 metres at 1,349 metres depth and 5.1 g/t gold over 8.2 metres at 1,455 metres depth. In the upper extension of East Gouldie, conversion drilling near the Odyssey shaft has returned intersections including 3.3 g/t gold over 20.8 metres at 814 metres depth. Results from the ongoing exploration program continue to show the potential to add significant mineral resources along extensions of the main East Gouldie deposit Madrid at Hope Bay – Exploration drilling during the third quarter of 2024 totalled 33,100 metres and continued to return wide, high-grade mineralized intervals at the Patch 7 zone, including 18.3 g/t gold over 16.4 metres at 479 metres depth, 16.8 g/t gold over 27.3 metres at 436 metres depth and 11.9 g/t gold over 30.4 metres at 394 metres depth, further confirming the greater thicknesses and higher gold grades in this area compared to the rest of the Madrid deposit

| | | 1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period. | | 2 Total cash costs per ounce and all-in sustaining costs or AISC per ounce are non-GAAP ratios that are not standardized financial measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP measures and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding Certain Measures of Performance" below. | | 3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. | | 4 Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below. | | 5 Net debt is a non-GAAP measure that is not a standardized financial measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to long-term debt, see "Note Regarding Certain Measures of Performance" below. |

Third Quarter 2024 Results Conference Call and Webcast Tomorrow

Agnico Eagle's senior management will host a conference call on Thursday, October 31, 2024 at 11:00 AM (E.D.T.) to discuss the Company's financial and operating results.

Via Webcast:

To listen to the live webcast of the conference call, you may register on the Company's website at www.agnicoeagle.com , or directly via the link here .

Via Phone:

To join the conference call by phone, please dial 416.945.7677 or toll-free 1.888.699.1199 to be entered into the call by an operator. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

To join the conference call by phone without operator assistance, you may register your phone number here 30 minutes prior to the scheduled start of the call to receive an instant automated call back.

Replay Archive:

Please dial 289.819.1450 or toll-free 1.888.660.6345, access code 80122#. The conference call replay will expire on November 30, 2024 .

The webcast, along with presentation slides, will be archived for 180 days on the Company's website.

Third Quarter 2024 Production and Cost Results

| Production and Cost Results Summary | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | | | | | 2024 | | 2023 | | 2024 | | 2023* | | Gold production (ounces) | | 863,445 | | 850,429 | | 2,637,935 | | 2,536,446 | | Gold sales (ounces) | | 855,899 | | 843,097 | | 2,609,192 | | 2,489,503 | | Production costs per ounce | | $ 908 | | $ 893 | | $ 887 | | $ 850 | | Total cash costs per ounce | | $ 921 | | $ 898 | | $ 897 | | $ 857 | | AISC per ounce | | $ 1,286 | | $ 1,210 | | $ 1,214 | | $ 1,162 |

| * Production and Cost Results Summary reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% thereafter. |

Gold Production

Third Quarter of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from the Nunavut operations, Macassa and Detour Lake, partially offset by lower production at Canadian Malartic and La India First Nine Months of 2024 – Gold production increased when compared to the prior-year period primarily due to higher production from Canadian Malartic, Meadowbank and Macassa, partially offset by lower production at Fosterville and La India

Production Costs per Ounce

Third Quarter of 2024 – Production costs per ounce increased when compared to the prior-year period primarily due to higher royalties arising from higher gold prices, partially offset by higher production and the benefit of the weaker Canadian dollar during the period First Nine Months of 2024 – Production costs per ounce increased when compared to the prior-year period primarily due to higher royalties arising from higher gold prices and higher production costs at Canadian Malartic related to underground mining operations, partially offset by higher production and the benefit of the weaker Canadian dollar during the period

Total Cash Costs per Ounce

Third Quarter and First Nine Months of 2024 – Total cash costs per ounce increased when compared to the prior-year periods primarily due to the reasons described above for the increase in production costs per ounce

AISC per Ounce

Third Quarter and First Nine Months of 2024 – AISC per ounce increased when compared to the prior-year periods due to the factors causing higher total cash costs per ounce and anticipated higher sustaining capital expenditures primarily at Canadian Malartic and Detour Lake, partially offset by higher production during the period

Third Quarter 2024 Financial Results

| Financial Results Summary | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | | | | | 2024 | | 2023 6 | | 2024 | | 2023 6 | | Realized gold price ($/ounce) 7 | | $ 2,492 | | $ 1,928 | | $ 2,297 | | $ 1,933 | | Net income ($ millions) 8 | | $ 567.1 | | $ 174.8 | | $ 1,386.3 | | $ 2,315.4 | | Adjusted net income ($ millions) | | $ 572.6 | | $ 216.1 | | $ 1,485.3 | | $ 806.7 | | EBITDA ($ millions) 9 | | $ 1,258.6 | | $ 722.0 | | $ 3,264.2 | | $ 3,878.4 | | Adjusted EBITDA ($ millions) 9 | | $ 1,256.6 | | $ 768.4 | | $ 3,362.0 | | $ 2,394.0 | | Cash provided by operating activities ($ millions) | | $ 1,084.5 | | $ 502.1 | | $ 2,829.0 | | $ 1,873.7 | | Cash provided by operating activities before changes in non-cash working capital balances ($ millions) | | $ 1,027.5 | | $ 668.7 | | $ 2,790.8 | | $ 1,970.5 | | Capital expenditures 10 | | $ 485.8 | | $ 406.4 | | $ 1,265.1 | | $ 1,164.2 | | Free cash flow ($ millions) | | $ 620.4 | | $ 82.3 | | $ 1,573.3 | | $ 645.3 | | Free cash flow before changes in non-cash working capital balances ($ millions) | | $ 563.4 | | $ 248.8 | | $ 1,535.0 | | $ 742.1 | | | | | | | | | | | | Net income per share (basic) | | $ 1.13 | | $ 0.35 | | $ 2.78 | | $ 4.76 | | Adjusted net income per share (basic) | | $ 1.14 | | $ 0.44 | | $ 2.97 | | $ 1.66 | | Cash provided by operating activities per share (basic) | | $ 2.16 | | $ 1.01 | | $ 5.67 | | $ 3.85 | | Cash provided by operating activities before changes in non-cash working capital balances per share (basic) | | $ 2.05 | | $ 1.35 | | $ 5.59 | | $ 4.05 | | Free cash flow per share (basic) | | $ 1.24 | | $ 0.17 | | $ 3.15 | | $ 1.33 | | Free cash flow before changes in non-cash working capital balances per share (basic) | | $ 1.12 | | $ 0.50 | | $ 3.07 | | $ 1.53 |

Net Income

Third Quarter of 2024 Net income was $567.1 million ( $1.13 per share). This result includes the following items (net of tax): derivative gains on financial instruments of $11.7 million ( $0.02 per share), non-recurring tax adjustments and foreign currency translation gains on deferred tax liabilities of $5.5 million ( $0.01 per share), net asset disposal losses of $3.7 million ( $0.01 per share) and foreign exchange and other adjustments of $8.0 million (0.01 per share) Excluding the above items results in adjusted net income of $572.6 million or $1.14 per share Included in net income and not adjusted above, is a non-cash stock option expense of $2.1 million (less than $0.01 per share) Net income of $567.1 million in the third quarter of 2024 increased compared to net income of $174.8 million in the prior-year period primarily due to stronger mine operating margins 11 resulting from higher realized gold prices and higher sales volumes, gains on derivative financial instruments in the current period and lower amortization expenses (primarily at Meadowbank, Canadian Malartic and Detour Lake), partially offset by higher income and mining tax expenses and higher production expenses

First Nine Months of 2024 – Net income of $1,386.3 million decreased compared to the prior-year period net income of $2,315.4 million primarily due to a remeasurement gain at Canadian Malartic in the prior period and higher income and mining tax expenses, partially offset by higher operating margins from higher realized gold prices and higher sales volumes. The remeasurement gain in the prior period is from the application of purchase accounting relating to a business combination attained in stages, which required the remeasurement of the Company's previously held 50% interest in Canadian Malartic to fair value.

Adjusted EBITDA

Third Quarter of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to stronger mine operating margins from higher realized gold prices and higher sales volumes First Nine Months of 2024 – Adjusted EBITDA increased when compared to the prior-year period primarily due to the reasons set out above for the third quarter of 2024 and as a result of the acquisition of the remaining 50% of Canadian Malartic

Cash Provided by Operating Activities

Third Quarter and First Nine Months of 2024 – Cash provided by operating activities and cash provided by operating activities before changes in non-cash working capital balances increased when compared to the prior-year periods primarily due to the reasons described above related to the increases in adjusted EBITDA

Free Cash Flow Before Changes in Non-cash Working Capital Balances

Third Quarter and First Nine Months of 2024 – Free cash flow before changes in non-cash working capital balances increased when compared to the prior-year periods due to the reasons described above related to cash provided by operating activities, partially offset by higher additions to property, plant and mine development

| | | 6 Certain previously reported line items have been restated to reflect the final purchase price allocation related to the acquisition of the Canadian assets of Yamana Gold Inc. (the "Yamana Transaction") including the 50% of Canadian Malartic that the Company did not own. Reflects Agnico Eagle's 50% interest in Canadian Malartic up to and including March 30, 2023 and 100% thereafter. | | 7 Realized gold price is calculated as gold revenues from mining operations divided by the number of ounces sold. | | 8 For the first quarter of 2023, includes a $1.5 billion revaluation gain on the 50% interest the Company owned in Canadian Malartic prior to the Yamana Transaction on March 31, 2023. | | 9 "EBITDA" means earnings before interest, taxes, depreciation, and amortization. EBITDA and adjusted EBITDA are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. | | 10 Includes capitalized exploration. Capital expenditures 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 and a reconciliation to additions to property, plant and mine development as set out in the consolidated statements of cash flows, see "Note Regarding Certain Measures of Performance" below. | | 11 Operating margin is a non-GAAP measure that is not a standardized measure under IFRS. For a description of the composition and usefulness of this non-GAAP measure and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below. |

Capital Expenditures

In the third quarter of 2024, capital expenditures were $437.2 million and capitalized exploration expenditures were $48.6 million , for a total of $485.8 million . Expected capital expenditures (including capitalized exploration) remain in line with the updated guidance for the full year 2024. Further details are set out in the "2024 Guidance" section below.

The following table sets out a summary of capital expenditures (including sustaining capital expenditures and development capital expenditures) and capitalized exploration in the third quarter of 2024 and the first nine months of 2024.

| Summary of Capital Expenditures | | | | | | | | | ($ thousands) | | | | | | | | | | Capital Expenditures* | | Capitalized Exploration | | | | | | | Three Months Ended | | Nine Months Ended | | Three Months Ended | | Nine Months Ended | | | Sep 30, 2024 | | Sep 30, 2024 | | Sep 30, 2024 | | Sep 30, 2024 | | Sustaining Capital Expenditures | | | | | | | | | LaRonde | $ 19,302 | | $ 63,125 | | $ 473 | | 1,349 | | Canadian Malartic | 36,789 | | 91,887 | | — | | — | | Goldex | 16,505 | | 39,912 | | 753 | | 2,536 | | Detour Lake | 77,638 | | 189,247 | | — | | — | | Macassa | 12,200 | | 28,389 | | 451 | | 1,259 | | Meliadine | 19,716 | | 53,664 | | 2,321 | | 6,148 | | Meadowbank | 30,216 | | 71,718 | | — | | — | | Fosterville | 9,509 | | 22,298 | | — | | — | | Kittila | 17,537 | | 51,813 | | 316 | | 1,181 | | Pinos Altos | 7,099 | | 18,190 | | 742 | | 1,662 | | La India | — | | 22 | | — | | — | | Other | 1,251 | | 3,520 | | 144 | | 989 | | Total Sustaining Capital Expenditures | $ 247,762 | | $ 633,785 | | $ 5,200 | | $ 15,124 | | | | | | | | | | | Development Capital Expenditures | | | | | | | | | LaRonde | $ 16,442 | | $ 61,168 | | $ — | | — | | Canadian Malartic | 41,824 | | 121,028 | | 1,510 | | 3,702 | | Goldex | 1,830 | | 8,886 | | — | | — | | Detour Lake | 52,199 | | 121,273 | | 9,051 | | 26,150 | | Macassa | 27,550 | | 62,008 | | 7,521 | | 25,225 | | Meliadine | 21,070 | | 58,164 | | 1,888 | | 8,694 | | Meadowbank | 7 | | (20) | | — | | — | | Fosterville | 8,402 | | 27,016 | | 2,531 | | 9,497 | | Kittila | 775 | | 2,971 | | 1,171 | | 5,730 | | Pinos Altos | 355 | | 1,806 | | 10 | | 14 | | San Nicolás project | 3,422 | | 15,077 | | — | | — | | Other | 15,530 | | 23,547 | | 19,745 | | 34,270 | | Total Development Capital Expenditures | $ 189,406 | | $ 502,924 | | $ 43,427 | | $ 113,282 | | Total Capital Expenditures | $ 437,168 | | $ 1,136,709 | | $ 48,627 | | $ 128,406 |