Agnico Eagle Reports Record Gold Production
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Agnico Eagle Reports Record Gold Production

Photo by:   Jan Mallander
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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Tue, 02/21/2023 - 15:53

The Canadian mining company Agnico Eagle reported financial and operating results for the fourth quarter and full year of 2022, as well as its future operating guidance, revealing record gold production in the year due to a solid operational performance and significant strategic consolidation.

Throughout 2022, the company was able to deliver solid operating performance despite challenging costs and a complicated workforce environment. Agnico Eagle had strong production and cost control, increased mineral reserves and resources, progressed expansion projects and saw an outstanding safety performance.

"From a safety and operational standpoint, 2022 was another strong year as we had our best safety performance in our 66-year history. We met production forecasts and managed our costs in a highly inflationary environment," said Ammar Al-Joundi, President and CEO, Agnico Eagle.

Gold production in 4Q22 stood at 799,438oz with production costs of US$8347oz, total cash of US$863/oz and all-in sustaining costs of US$1,231/oz. Moreover, the quarterly unit costs were affected by inflationary pressures at the Nunavut and Kittila operations and lower production at Laronde, Kittila and Pinos Altos. 

In addition, the company reported a quarterly net income of US$0.45 per share in 4Q22 with an adjusted net income of US$0.41 per share and an operating cash flow of US$0.84 per share. 

The record annual gold production and operating cash flow in 2022, resulting from solid operational performance across the recently integrated asset portfolio for payable gold, was 3,135,007 oz at production costs of US$843/oz, total cash costs of US$793/oz and all-in sustaining costs of US$1,109/oz. 

"It was a transformational year for Agnico Eagle. The merger with Kirkland Lake Gold and the pending acquisition of Yamana's Canadian assets will result in the consolidation of the Abitibi Gold Belt, one of the best gold regions in the world, and positions us well to continue to grow and create value for all our stakeholders for years to come,” added Al-Joundi 

The company’s gold mineral reserves increased to a record level in 2022 with gold mineral reserves increasing by 9% to 49.7 million oz of gold. The year-over-year increase in mineral reserves is largely due to significant additions at Detour Lake as well as the successful conversion of mineral resources at other operations. At year-end 2022, measured and indicated mineral resources were 44.2 million oz and inferred mineral resources were 26.3 million oz. 

“In 2023, our focus will be on optimizing and growing Detour Lake and Canadian Malartic and on establishing a plan to capitalize on existing infrastructure, including our excess mill capacity, in the Abitibi region of Quebec, with the potential to produce up to 500,000 ounces of gold per year by the end of the decade," mentioned Al-Joundi. 

Photo by:   Jan Mallander

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