Agnico-Eagle aims to hit gold targets after strong Q3

Agnico-Eagle Mines Ltd. (TSX-AEM, NYSE-AEM) believes it is on track to reach the mid-point of its 2023 gold production target of between 3.24 and 3.44 million ounces of gold.

The estimate is contained in the company’s third quarter 2023 results and is based on the assumption that its Kittila mill in Finland operates at an annual rate of 1.6 million tonnes per annum.

Agnico-Eagle shares eased 2.19% or $1.07 to $47.74. The shares are trading in a 52-week range of $61.15 and $40.81.

“Agnico-Eagle had another solid quarter with production and costs coming in as expected,’’ said Agnico President and CEO Ammar Al-Joundi. The Canadian Malartic and Meadowbank complexes delivered strong results in the quarter, offsetting unscheduled mill downtime at Detour Lake and highlighting the benefit of our diverse portfolio of mines,’’ Al-Joundi said. “We are expecting a strong finish to the year, and based on our year-to-date performance we are well positioned to achieve our cost guidance and expect gold production to come in above the mid-point of our annual production guidance,’’ he said.

The forecast came after Agnico reported payable gold production of 850,429 ounces in the third quarter of 2023 at an all-in-sustaining cost of US$1,210 an ounce.

That brought production for the first nine months of 2023 to 2.53 million ounces at an AISC of US$1,162 an ounce.

It should be noted that production results reflect Agnico’s 50% interest in the Canadian Malartic complex up to and including March 30, 2023, and 100% thereafter, and Agnico’s acquisition of the Detour Lake, Macassa and Fosterville mines in February 8, 2022 following the merger with Kirkland Lake Gold Ltd.

Agnico-Eagle acquired Yamana Gold’s 50% interest in Canadian Malartic back in March, 2023, leaving Agnico with a 100% interest in both the Canadian Malartic and Odyssey mines. Odyssey forms part of the Canadian Malartic complex.

Agnico reported quarterly net income of 36 cents per share in the third quarter and adjusted net income of 44 cents per share.

Agnico said a Supreme Administrative Court of Finland (SAC) decision on the KIttila operating permit remains pending. The SAC has informed the company that it will issue its decision on Kittila’s operating permit in October, 2023. If the SAC reverses a lower court ruling and reinstates the company’s operating permit at 2.0 million tonnes per annum by the end of October, 2023, the company expects Kittila to produce up to 30,000 ounces of gold in the fourth quarter of 2023 as compare to the current production guidance.

If the SAC does not release its decision by the end of October, or upholds the lower court decision and maintains the current operating permit at 1.6 million tonnes per annum, the company will be required to temporarily suspend its activities in the fourth quarter of 2023 to remain within the permitted rate.

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