(All amounts expressed in U.S. dollars unless otherwise noted)

TORONTO, July 31, 2024 /CNW/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the second quarter of 2024.

"We continue to deliver strong and reliable operational results which, combined with higher gold prices, drove record operating margin and free cash flow for the third consecutive quarter. As a result of the excellent performance of our operations through the first half of 2024, we are highly confident we will achieve our full year production and cost guidance," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "We generated over half of a billion dollars of free cash flow in the second quarter, supporting a significant strengthening of our balance sheet and increased returns to shareholders. We continue to take a measured approach advancing key pipeline projects that show strong risk-adjusted returns, such as the Detour Lake underground and Upper Beaver projects. Our focus remains on capital discipline and cost control to ensure that the benefits of higher gold prices accrue to our shareholders through strengthening our financial position and increasing shareholder returns," added Mr. Al-Joundi.

Second quarter 2024 highlights:

Strong quarterly gold production – Payable gold production1 was 895,838 ounces at production costs per ounce of $862, total cash costs per ounce2 of $870 and all-in sustaining costs ("AISC") per ounce2 of $1,169. Gold production was led by strong production at Canadian Malartic, LaRonde and Fosterville
Record quarterly adjusted net income3 – The Company reported quarterly net income of $472.0 million or $0.95 per share and adjusted net income of $535.3 million or $1.07 per share
Record quarterly cash provided by operating activities and free cash flow – The Company generated record cash provided by operating activities of $961.3 million or $1.92 per share ($986.2 million or $1.97 per share before changes in non-cash working capital balances4) and free cash flow4 of $557.2 million or $1.12 per share ($582.2 million or $1.17 per share before changes in non-cash working capital balances4)
Strengthening investment grade balance sheet and financial flexibility – The Company increased its cash position by $397.4 million to $922.0 million and significantly reduced net debt as at June 30, 2024. Subsequent to quarter-end, the Company repaid the $100.0 million 5.02% Series B senior notes at maturity and repaid $150.0 million of the $600.0 million unsecured term loan facility drawn in 2023
2024 gold production and cost guidance reiterated – Full year expected payable gold production remains unchanged at approximately 3.35 to 3.55 million ounces in 2024, with total cash costs per ounce and AISC per ounce in 2024 unchanged at $875 to $925 and $1,200 to $1,250, respectively. Total capital expenditures (excluding capitalized exploration) for 2024 are still estimated to be between $1.6 billion to $1.7 billion. Capitalized exploration is now expected to be approximately $187 million for the full year 2024. Further details are set out in the "2024 Guidance" section below
Update on key value drivers and pipeline projects
Approval of measured investments over next three years to further evaluate and de-risk the Detour Lake underground and Upper Beaver projects – Based on internal studies indicating solid risk-adjusted returns for the Detour Lake underground and Upper Beaver projects5, the Company has adopted a measured approach to advance these projects, approving $100.0 million and $200.0 million investments, respectively, over approximately three years. At Detour Lake, a 2.0-kilometre exploration ramp is expected to be developed to a depth of 270 metres to collect a bulk sample and to facilitate infill and expansion drilling of the current underground mineral resource. At Upper Beaver, an exploration ramp and an exploration shaft are expected to be developed to a depth of 250 metres and 760 metres, respectively, to establish underground drilling platforms and collect bulk samples
Detour Lake – In June 2024, the Company released the results of a technical study reflecting the potential for a concurrent underground operation at Detour Lake that would accelerate access to higher grade ore and increase annual production to approximately one million ounces for 14 years starting in 2030 (see the Company's news release dated June 19, 2024). In the second quarter of 2024, with the replacement of the defective grinding media at the SAG mill and record quarterly mill availability of 93.0%, mill throughput improved to 74,637 tonnes per day ("tpd") and is expected to reach the target rate of 76,700 tpd by the end of 2024
Upper Beaver – A positive internal evaluation was completed in June 2024 for a standalone mine and mill scenario at Upper Beaver. Based on this evaluation, the Company believes Upper Beaver has the potential to produce an annual average of approximately 210,000 ounces of gold and 3,600 tonnes of copper, with initial production possible as early as 2030. Over an expected 13-year mine life, total payable gold and copper production is expected to be approximately 2.8 million ounces and 46,300 tonnes, respectively. Estimated total cash costs per ounce on a by-product basis and AISC per ounce on a by-product basis are expected to be approximately $592 and $733, respectively. In addition, the project has the potential to unlock significant exploration potential at depth and within satellite deposits in the Company's Kirkland Lake camp
Odyssey mine at Canadian Malartic – At Odyssey South, record quarterly mining rates and gold production were achieved at approximately 3,750 tpd and 22,300 ounces of gold, respectively. In the second quarter of 2024, ramp development continued to exceed the Company's target, reaching the third production level at East Gouldie at a depth of 832 metres as at June 30, 2024. Shaft sinking advanced at an average rate of 2.5 metres per day and reached a depth of 680 metres as at June 30, 2024. Surface construction is progressing as planned, with a focus on the main hoist building, phase two of the paste plant and the operations complex
Approval of a supplemental exploration budget of $50.0 million – The Company's exploration program returned positive results in the first half of 2024 at Canadian Malartic, Detour Lake and Hope Bay, showing excellent potential to identify additional mineral resources. These results support increased budgets approved by the Company for the second half of 2024.
East Gouldie at Odyssey mine – Recent exploration drilling continued to return good results in the eastern and western extensions of the East Gouldie deposit including 4.5 grams per tonne ("g/t") gold over 6.5 metres at 1,571 metres depth approximately 770 metres east of the current mineral reserves and 2.5 g/t gold over 30.0 metres at 1,473 metres depth and 85 metres west of the current mineral reserves. The results from the ongoing exploration program are anticipated to have a positive impact on the mineral resource estimate at year-end 2024
Detour Lake underground – Infill drilling into the high-grade corridor in the West Pit zone continued to confirm the higher grades and mineralized structure amenable to underground mining. Highlights include 4.0 g/t gold over 22.3 metres at 413 metres depth and 4.4 g/t gold over 30.1 metres at 550 metres depth. Near the proposed exploration ramp, highlights include 20.6 g/t gold over 5.5 metres at 280 metres depth and 4.7 g/t gold over 15.6 metres at 313 metres depth
Madrid at Hope Bay – Exploration drilling during the second quarter of 2024 totalled 35,400 metres and continued to return strong results from infill drilling north of the Patch 7 mineral resources, including 17.0 g/t gold over 25.8 metres at 419 metres depth, 7.2 g/t gold over 8.1 metres at 559 metres depth and 5.3 g/t gold over 18.0 metres at 278 metres depth, further confirming the greater thicknesses and higher gold grades in this area compared to the rest of the Madrid deposit
Reconciliation Action Plan and 2023 Climate Action Report published – On July 10, 2024, the Company released its first Reconciliation Action Plan, reinforcing its commitment to reconciliation with Indigenous Peoples and communities. In addition, on July 31, 2024, the Company released its 2023 Climate Action Report. In line with the recommendations of the Task Force on Climate-related Financial Disclosures and Towards Sustainable Mining Climate Change protocol, the 2023 Climate Action Report outlines how the Company is addressing climate change risks and opportunities
Continued focus on shareholder returns – In the second quarter of 2024, the board of directors declared a quarterly dividend of $0.40 per share. In the second quarter of 2024, the Company also repurchased 763,043 common shares at an average share price of $65.53 for an aggregate of $50.0 million through its normal course issuer bid ("NCIB"), which was renewed in May 2024
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1 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.

2 Total cash costs per ounce and AISC per ounce are a non-GAAP ratios that are not standardized financial measures under IFRS and, in this news release, unless otherwise specified, are reported on (i) a per ounce of gold production basis, and (ii) a by-product basis. For a description of the composition and usefulness of these non-GAAP measures and reconciliations of total cash costs per ounce and AISC per ounce to production costs on both a by-product and a co-product basis, see "Note Regarding Certain Measures of Performance" below.

3 Adjusted net income and adjusted net income per share are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to net income see "Note Regarding Certain Measures of Performance" below.

4 Cash provided by operating activities before changes in non-cash working capital balances, free cash flow and free cash flow before changes in non-cash working capital balances and their related per share measures are non-GAAP measures or ratios that are not standardized financial measures under IFRS. For a description of the composition and usefulness of these non-GAAP measures and a reconciliation to cash provided by operating activities see "Note Regarding Certain Measures of Performance" below.

5 The forecast parameters surrounding the technical study for the Detour Lake underground project and the internal evaluation for the Upper Beaver project were based on a preliminary economic assessment, which is preliminary in nature and includes inferred mineral resources. For further detail, refer to the Company's news release dated June 19, 2024 for the Detour Lake underground project and the Update on Key Value Drivers and Pipeline Projects section set our below for the Upper Beaver project.

Second Quarter 2024 Results Conference Call and Webcast Tomorrow

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