Agnico Eagle Mines (AEM) Q4 2023 earnings summary

Executive summary

• Record Q4 gold production and free cash flow; FY2023 set records for annual gold production, free cash flow and safety performance.

• Stable production outlook targets 3.35–3.55Moz in 2024 and 3.4–3.6Moz annually in 2025–2026.

Financial highlights

• Q4 2023 revenue was $1.757B; net loss was $381M, while adjusted net income was $282M.

• FY2023 revenue was $6.627B, net income $1.941B and adjusted net income $1.096B, versus $5.741B, $670M and $1.004B in FY2022.

• FY2023 EBITDA was $3.981B and adjusted EBITDA $3.237B; cash from operations was $2.602B and free cash flow $947M.

• Q4 free cash flow reached a record $103M, versus negative $20M in Q4 2022; Q4 cash from operations was $437M.

• A $667M after-tax impairment, or $1.35/share, related to Macassa and Pinos Altos in Q4 and FY2023.

Outlook and guidance

• 2024 production guidance remains 3.35–3.55Moz; total cash costs of $875–$925/oz and AISC of $1,200–$1,250/oz.

• 2024 capital expenditure guidance is $1.6–$1.7B; exploration expense is $220–$240M and capitalized exploration $105–$115M.

• 2025–2026 production is expected at 3.4–3.6Moz annually, with costs and capital expenditures expected to remain stable excluding inflation.

• Meliadine Phase 2 mill expansion is expected to finish mid-2024; throughput is expected to reach 6ktpd in late 2024 and 6.25ktpd in 2026.

• Detour expansion updates and Upper Beaver internal evaluation were expected in H1 2024.