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(Kitco News) - Agnico Eagle (NYSE: AEM) (TSX: AEM), one of the world’s largest gold miners, announced on Thursday that in Q1 2023, the company's payable gold production was 812,813 ounces, up 23% compared to 660,604 ounces produced in Q1 2022.
The company explained that payable gold production increased in the first quarter of 2023 when compared to the prior-year period primarily due to the inclusion of additional days of production in the 2023 period at the Detour Lake, Fosterville and Macassa mines.
In the first quarter of 2023, production costs per ounce were $804, compared to $1,002 in the prior-year period. In the first quarter of 2023, total cash costs per ounce were $832, compared to $811 in the prior-year period.
The company said that production costs per ounce decreased in the first quarter of 2023 when compared to the prior-year period primarily as a result of the revaluation of gold inventory held by Kirkland Lake Gold on February 8, 2022.
Total cash costs per ounce increased in the first quarter of 2023 when compared to the prior year period primarily due to higher inventory adjustments and lower by-product revenues from the LaRonde mine and Pinos Altos mine, it added.
In the first quarter of 2023, all-in sustaining costs (AISC) per ounce were $1,125, compared to $1,079 in the prior-year period. The company said that the increase in AISC per ounce was primarily due to higher total cash costs per ounce and higher sustaining capital expenditures, partially offset by lower general and administrative expenses.
The company reported that in the first quarter of 2023, net income was $1,816.9 million ($3.87 per share), while adjusted net income was $271.3 million or $0.58 per share. For the first quarter of 2022, the company reported net income of $119.1 million ($0.31 per share). The company also declared a quarterly dividend of $0.40 per share.
Agnico Eagle noted that the increase in net income in the first quarter of 2023 compared to the prior-year period is primarily due to the remeasurement gain arising from the acquisition of the remaining 50% of the Canadian Malartic complex of $1,543.4 million ($3.29 per share).
“This gain is a result of the application of purchase accounting relating to a business combination attained in stages, which requires the remeasurement on the subsequent acquisition of the company's previously held 50% interest in the Canadian Malartic complex to fair value,” the company said.
Agnico Eagle pointed out that its expected payable gold production in 2023 remains unchanged at approximately 3.24 to 3.44 million ounces with total cash costs per ounce expected to be between $840 and $890 and AISC per ounce expected to be between $1,140 and $1,190.
President and CEO Ammar Al-Joundi stated, "The year is off to a good start with strong operational results and the best quarterly safety performance in the company's over 65-year history, which positions us well to meet our full year guidance projections. Costs were better than expected, primarily due to the strong operating results, favourable currency movements and a slight easing of inflationary pressures.
"With the completion of the acquisition of Yamana's Canadian assets on March 31st, our focus in 2023 continues to be on the optimization of our strategic positions in the Abitibi gold belt, with an aim of increasing annual gold production from this region by approximately 500,000 ounces by the end of the decade. Efforts are ongoing to evaluate several opportunities to leverage existing infrastructure which has the potential to significantly increase future gold production at lower capital intensity and with a reduced environmental footprint. If realized, these opportunities have the potential to deliver increased returns to our shareholders with reduced execution and operating risk."
Agnico Eagle is a senior Canadian gold mining company, 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.
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