Kitco News - Numbers were way up at Agnico Eagle Mines (NYSE:AEM) due to its acquisition of the remaining 50% of Canadian Malartic.
The number three ranked miner by gold production released its year end Thursday evening.
Full year gold production was 3.4 million ounces compared to 3.1 million a year ago.
Net income was $1.9 billion compared to $670 million thanks to a near $200 jump in the average realized price of gold.
In the fourth quarter the company recorded a net income loss of $381 million mostly due to an impairment charge at its Macassa mine, which was written down due to lower grades, higher operating costs and higher capital expenditures.
All-in-sustaining costs for the year were higher, $1,179 compared to $1,109 a year ago. The company said that the cost creep was due to higher operating costs at most mine sites resulting from inflation and higher royalties arising from higher gold prices and the acquisition of the remaining 50% of the Canadian Malartic complex, partially offset by higher production.
Capital costs creeped up. Capital expenditures are forecast to be approximately $1.65 billion in 2024. Previous guidance was of $1.40 billion to $1.60 billion. The expected increase in 2024 is mostly attributable to 100% ownership of Canadian Malartic for the full year, inflation and additional capital expenditures at Detour Lake.
Three year outlook is stable. Payable gold production is forecast to be approximately 3.35 to 3.55 million ounces in 2024 and approximately 3.40 to 3.60 million ounces in 2025.
Gold reserves were up. Year-end 2023 gold mineral reserves increased by 10.5% to 53.8 million ounces of gold. The year-over-year increase in mineral reserves is largely due to the declaration of initial mineral reserves at East Gouldie, the acquisition of the remaining 50% interest in the Canadian Malartic complex and net mineral reserve additions at Macassa.
