Agnico Eagle Mines Limited (TSX: AEM) reported its third-quarter 2024 results, achieving gold production of 863,445 ounces, marking a modest increase from 850,429 ounces in Q3 2023. This output is attributable to solid performances across several key sites, including the Nunavut operations, Macassa, and Detour Lake.
Production costs per ounce were $908, up slightly from $893 in Q3 2023, while total cash costs per ounce rose from $898 to $921, primarily driven by higher royalties due to elevated gold prices. Additionally, the company reported an all-in sustaining cost (AISC) of $1,286 per ounce, up from $1,210 last year, influenced by increased sustaining capital expenditures.
For the first nine months of 2024, total gold production reached 2.64 million ounces, a 4% increase from 2.54 million ounces over the same period in 2023. Total cash costs per ounce for this period were $897, up from $857, and AISC was $1,214, rising from $1,162. The cost increases reflect the higher production costs associated with underground mining at Canadian Malartic and additional sustaining capital investments at key operations.
Agnico Eagle’s Q3 2024 adjusted net income reached a record $572.6 million, or $1.14 per share, a substantial improvement from $216.1 million, or $0.44 per share, in Q3 2023. The company’s net income for the quarter was $567.1 million, compared to $174.8 million in Q3 2023, bolstered by higher gold prices and increased sales volumes.
The company also reported record cash provided by operating activities of $1.08 billion in Q3 2024, up from $502.1 million in the same quarter last year. Adjusted free cash flow reached $620.4 million, a significant rise from $82.3 million in Q3 2023. This growth was driven by the favorable gold price environment, which saw realized prices jump to $2,492 per ounce, up from $1,928 per ounce in Q3 2023.
Year-to-date, Agnico Eagle’s operating cash flow for the first nine months of 2024 increased by 51%, from $1.87 billion in 2023 to $2.83 billion. Free cash flow for the same period more than doubled, reaching $1.57 billion, compared to $645.3 million in 2023, emphasizing the company’s robust financial management and capital discipline.
Agnico Eagle has made significant strides in reducing its debt burden. As of September 30, 2024, the company’s net debt stood at $490 million, down from $1.5 billion at the beginning of the year. In Q3 alone, Agnico Eagle repaid $375 million, which included the maturity of the $100 million Series B Senior Notes and a $275 million prepayment on its $600 million term loan facility. Total debt as of the end of the quarter was $1.47 billion, reduced by $374.5 million from $1.84 billion in Q2 2024.
The company’s cash position improved by $55.2 million during the quarter, bringing total cash and cash equivalents to $977.2 million. Agnico Eagle’s liquidity remains strong, with access to an additional $2 billion under an unsecured revolving credit facility, plus a $1 billion uncommitted accordion feature, providing ample flexibility for future growth initiatives.
In Q3 2024, Agnico Eagle declared a dividend of $0.40 per share, payable on December 16, 2024, marking the continuation of a long-standing dividend policy that has been in place since 1983. Additionally, the company repurchased 362,343 shares under its normal course issuer bid (NCIB) at an average price of $82.86, amounting to $30 million in shareholder returns. Year-to-date, Agnico Eagle has repurchased 1.5 million shares for $99.9 million, reflecting a strong commitment to shareholder value.
Agnico Eagle has maintained its 2024 guidance, expecting gold production in the range of 3.35 to 3.55 million ounces, with total cash costs projected between $875 and $925 per ounce and AISC between $1,200 and $1,250 per ounce. Capital expenditures are anticipated to reach approximately $1.65 billion, consistent with previous estimates.
Agnico Eagle last traded at $122.69 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
