Mr. Ammar Al-Joundi reports

AGNICO EAGLE REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS - RECORD QUARTERLY AND ANNUAL GOLD PRODUCTION AND FREE CASH FLOW; RECORD MINERAL RESERVES INCREASED 10.5%; UPDATED THREE-YEAR GUIDANCE

Agnico Eagle Mines Ltd. has released its financial and operating results for the fourth quarter and full year of 2023, as well as future operating guidance. (All amounts are expressed in United States dollars unless otherwise noted.)

"We had a very strong close to 2023, with our fourth quarter results driving a record year in terms of safety, operating and financial performance. We achieved the top end of our gold production guidance range and the mid-point of our cost guidance ranges despite inflationary pressures throughout the year," said Ammar Al-Joundi, Agnico Eagle's president and chief executive officer. "We are extremely pleased with the results that our teams have accomplished with their hard work this year and we have much to look forward to. We are reporting record mineral reserves and a stable production profile at industry leading costs, anchored by the two largest gold operations in Canada, the Detour Lake mine and the Canadian Malartic complex. We continue to advance studies on optimizing our Abitibi platform and we expect to provide additional updates in the first half of 2024. Our track record of executing and delivering results demonstrates the strength of our business and we are well positioned to create long-term value and generate strong returns," added Mr. Al-Joundi.

Fourth quarter and full year 2023 highlights:

• Record quarterly gold production -- Payable gold production in the fourth quarter of 2023 was 903,208 ounces at production costs per ounce of $861, total cash costs per ounce of $888 and all-in sustaining costs (AISC) per ounce of $1,227. Gold production in the fourth quarter of 2023 was led by strong production at the Detour Lake mine, the LaRonde complex and the Macassa mine, offsetting lower production at the Fosterville mine.
• Record quarterly cash provided by operating activities and free cash flow -- The company reported a quarterly net loss of $381.0-million or 77 cents per share and adjusted net income of $282.3-million or 57 cents per share for the fourth quarter of 2023. Included in the quarterly net loss are impairment charges totalling $667-million (net of tax) or $1.35 per share relating to the Macassa and Pinos Altos mines. Cash provided by operating activities was $1.47 per share ($1.57 per share before working capital adjustments) and free cash flow was 61 cents per share (71 cents per share before working capital adjustments).
• Record annual safety performance, annual gold production and free cash flow driven by solid operational performance -- Payable gold production in 2023 was 3,439,654 ounces at production costs per ounce of $853, total cash costs per ounce of $865 and AISC per ounce of $1,179. Production for 2023 was at the very top end of the company's 2023 guidance range of 3.24 million ounces to 3.44 million ounces. Total cash costs per ounce were at the midpoint of the company's 2023 guidance and AISC per ounce were in the range of the company's 2023 guidance. Free cash flow for the full year 2023 was $947.4-million ($1,093.8-million before changes in non-cash components of working capital).
• Record gold mineral reserves driven by declaration of initial mineral reserves at East Gouldie -- Year-end 2023 gold mineral reserves increased by 10.5 per cent to 53.8 million ounces of gold (1,287 million tonnes grading 1.30 grams per tonne (g/t) 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-per-cent interest in the Canadian Malartic complex and net mineral reserve additions at Macassa. At year-end 2023, measured and indicated mineral resources were 44.0 million ounces (1,189 million tonnes grading 1.15 g/t gold) and inferred mineral resources were 33.1 million ounces (411 million tonnes grading 2.50 g/t gold), including initial underground inferred mineral resources at Detour Lake. For further details, see the company's exploration news release dated Feb. 15, 2024
• Stable three-year production outlook -- Payable gold production is forecast to be approximately 3.35 million to 3.55 million ounces in 2024 and approximately 3.40 million to 3.60 million ounces in 2025 (unchanged from prior three-year guidance issued on Feb. 16, 2023 (previous guidance)). Payable gold production is forecast to remain stable in 2026 at an expected range of approximately 3.40 million to 3.60 million ounces.
• Unit costs reflect easing rate of inflation -- Total cash costs per ounce and AISC per ounce in 2024 are forecast to be $875 to $925 and $1,200 to $1,250, respectively. The midpoints of these ranges each represent an approximate 4-per-cent increase when compared with the full year 2023 total cash costs per ounce of $865 and AISC per ounce of $1,179. The expected cost increases in 2024 are mostly related to labour, spare parts and maintenance.
• Capital expenditures forecast to be approximately $1.65-billion in 2024 -- Capital expenditures in 2024 (excluding capitalized exploration) are expected to increase relative to previous guidance of $1.40-billion to $1.60-billion. The expected increase in 2024 is mostly attributable to 100-per-cent ownership of Canadian Malartic for the full year, inflation and additional capital expenditures at Detour Lake.
• Strategic optimization initiatives improve Canadian production base, with further clarity on the medium term potential to be provided through 2024 -- Key developments in 2023 included the declaration of commercial production at Canadian Malartic's Odyssey South deposit, a 12-per-cent increase in mill throughput at Detour Lake year over year and development of the near-surface (NSUR) and Amalgamated Kirkland (AK) deposits at Macassa. The company expects to provide updates on additional opportunities that are being evaluated in the Abitibi region in the first half of 2024.
  • Odyssey mine at the Canadian Malartic complex -- The planned mining rate of 3,500 tonnes per day (tpd) at Odyssey South was reached earlier than anticipated and sustained through the fourth quarter of 2023. Ramp development has also exceeded target, reaching a depth of 715 metres as at Dec. 31, 2023. The company is evaluating the potential to accelerate initial production from East Gouldie to 2026 from 2027. Surface construction is progressing as planned, with approximately 65 per cent completed at year-end, and shaft sinking activities continued to ramp up through the quarter. Infill and expansion drilling in 2023 resulted in the declaration of an initial mineral reserve in the central portion of the East Gouldie deposit of 5.17 million ounces of gold (47.0 million tonnes grading 3.42 grams per tonne gold) and the extension of the East Gouldie mineral resource laterally by 870 metres.
  • Detour Lake -- The mill delivered a strong performance in the fourth quarter of 2023, operating at a throughput rate of 71,826 tpd (equivalent to an annualized rate of approximately 26.2 million tonnes per annum (Mtpa)). With sustained improvements year over year, the company now expects the mill to reach a throughput rate of approximately 76,700 tpd (equivalent to an annualized rate of approximately 28 Mtpa) late in the second half of 2024, previously expected in 2025. At year-end 2023, the company reported an initial underground inferred mineral resource below and to the west of the existing pit, totalling 1.56 million ounces of gold (21.8 million tonnes grading 2.23 g/t gold) and continues to evaluate the potential for underground mining. Exploration in 2024 is expected to continue to test the west plunge extension of the main deposit. An exploration ramp is also being considered to facilitate drilling that would increase confidence in the continuity of the inferred mineral resource and, potentially, to collect a bulk sample. The company expects to provide an update on mill optimization efforts, the Detour underground project and continuing exploration results in the first half of 2024
  • Abitibi region of Quebec and Ontario -- Macassa's NSUR and AK deposits have now been incorporated in the company's production guidance. At Upper Beaver, the company is conducting a trade-off analysis comparing transporting and processing ore at the LaRonde mill to a stand-alone central mill for Upper Beaver and satellite deposits. An exploration ramp and shaft are being considered at Upper Beaver in order to upgrade and further explore the deeper portions of the deposit. At Wasamac, the company is assessing hauling alternatives and the optimal mining rate for transporting and processing ore at the Canadian Malartic mill. The company expects to complete internal technical evaluations for Upper Beaver and Wasamac in the first half of 2024.
  • Amaruq mine at the Meadowbank complex -- The company extended Amaruq's mine life to 2028 (previous mine life was to 2026), adding approximately 500,000 ounces of gold to the expected mining profile, as a result of continuous improvement and cost optimization efforts, positive infill drilling, and positive reconciliation to the geological model.
  • Hope Bay -- At the Madrid deposit, the target area in the gap between the Suluk and Patch 7 zones delivered strong drill results in the quarter, including 16.3 g/t gold over 28.6 metres at 385 metres depth and 12.7 g/t gold over 4.6 metres at 677 metres depth. Results confirm the potential to expand gold mineralization in the Madrid deposit at depth and along strike to the south. Based on recent exploration success, the company is evaluating a larger potential production scenario for Hope Bay. The company expects to report results from this internal technical evaluation in 2025.
• A quarterly dividend of 40 cents per share has been declared.

Fourth quarter and full year 2023 results conference call and webcast tomorrow

Agnico Eagle's senior management will host a conference call on Friday, Feb. 16, 2024, at 11 a.m. ET to discuss the company's fourth quarter and full year 2023 financial and operating results.

Via webcast

A live audio webcast of the conference call will be available on the company's website.

You can dial direct to be entered to the call by an operator.

Via telephone

For those preferring to listen by telephone, please dial 416-764-8659 or toll-free 1-888-664-6392. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.

Replay archive

Please dial 416-764-8677 or toll-free 1-888-390-0541, access code 178426 followed by the pound key. The conference call replay will expire on March 16, 2024.

The webcast, along with presentation slides, will be archived for 180 days on the company's website.

Fourth quarter 2023 production and cost results

Gold production

• Fourth quarter of 2023 -- Gold production increased when compared with the prior year primarily due to additional production from the acquisition of the remaining 50 per cent of the Canadian Malartic complex following the closing of the transaction with Yamana Gold Inc. and higher production from the Macassa and Kittila mines, partially offset by lower production at the Fosterville mine.
• Full year 2023 -- Gold production increased when compared with the prior year as a result of the additional production from the acquisition of the remaining 50 per cent of the Canadian Malartic complex, a full year of contribution in 2023 from the Detour Lake, Macassa and Fosterville mines (as compared with 326 days during the year ended 2022 following the closing of the merger with Kirkland Lake Gold Ltd. on Feb. 8, 2022) and increased production from the Meadowbank complex, partially offset by lower production at the Fosterville mine and LaRonde complex.

Net income

• Fourth quarter of 2023:
  • Net loss was $381.0-million (77 cents per share). This result includes the following items (net of tax): impairment losses of $667.4-million ($1.35 per share), derivative gains on financial instruments of $50.7-million (10 cents per share), non-recurring tax adjustment and change in tax rate and foreign currency translation losses on deferred tax liabilities of $26.4-million (five cents per share), net asset disposals losses of $16.2-million (three cents per share), and foreign exchange and other losses of $4.0-million (one cent per share).
  • Excluding these items results in adjusted net income of $282.3-million or 57 cents per share for the fourth quarter of 2023.
  • Included in the fourth quarter of 2023 net loss, and not adjusted herein, is a non-cash stock option expense of $2.4-million (one cent per share).
  • Net loss of $381.0-million in the fourth quarter of 2023 compared with net income of $194.1-million in the prior-year period primarily due to impairment losses and higher amortization related to the acquisition of the remaining 50 per cent of the Canadian Malartic complex, partially offset by stronger mine operating margins from higher realized gold prices and higher sales volumes resulting from the acquisition of the remaining 50 per cent of the Canadian Malartic complex, and lower exploration and corporate development costs.
• Full year 2023 -- Net income increased compared with the prior year primarily due to a remeasurement gain at the Canadian Malartic complex resulting from the application of purchase accounting relating to a business combination attained in stages, which requires the remeasurement of the company's previously held 50-per-cent interest in the Canadian Malartic complex to fair value, higher realized gold prices and higher sales volumes, partially offset by impairment losses and higher amortization.

We seek Safe Harbor.