Agnico Eagle(US:AEM)2024-04-25 21:04Financial Performance - Agnico Eagle reported net income of $347.2 million, or $0.70 per share, for Q1 2024, a decrease from $1,816.9 million, or $3.87 per share, in Q1 2023[9]. - Adjusted net income increased to $377.5 million, or $0.76 per share, in Q1 2024, compared to $271.3 million, or $0.58 per share, in Q1 2023, primarily due to higher operating margins[11]. - EBITDA for Q1 2024 was reported at $882.5 million, down from $2,272.9 million in Q1 2023, while adjusted EBITDA increased to $929.3 million from $740.4 million[11]. - The effective tax rate increased to 29.0% in Q1 2024 from 6.6% in Q1 2023, largely due to a non-taxable revaluation gain recorded in the previous year[14]. - Net income for Q1 2024 was $347,192, a significant decrease from $1,816,891 in Q1 2023, representing a decline of approximately 81%[100]. - EBITDA for Q1 2024 was $882,538, down from $2,272,906 in Q1 2023, indicating a decrease of about 61%[100]. - Adjusted EBITDA increased to $929,272 in Q1 2024 from $740,396 in Q1 2023, reflecting a growth of approximately 25.6%[100]. - Free cash flow for Q1 2024 was $395,588, compared to $264,679 in Q1 2023, marking an increase of about 49.4%[104]. Production and Operations - Gold production rose to 878,652 ounces in Q1 2024, up from 812,813 ounces in Q1 2023, driven by contributions from the Canadian Malartic complex following the Yamana Transaction[11]. - Operating margin increased by 22.1% to $1,046.2 million in Q1 2024, compared to $856.5 million in Q1 2023, due to a 21.2% increase in revenues from mining operations[11]. - Revenues from mining operations increased to $1,829.8 million in Q1 2024, up 21.2% from $1,509.7 million in Q1 2023, driven by higher gold sales volumes and a 9.0% increase in realized gold sales price[13]. - Total production costs for Q1 2024 amounted to $783,585, up from $653,144 in Q1 2023, representing an increase of about 20%[111]. - Total gold production for the three months ended March 31, 2024, was 878,652 ounces, an increase of 8.1% compared to 812,813 ounces in the same period of 2023[142]. - Total gold sold during the same period was 879,063 ounces, up from 787,558 ounces, representing an increase of 11.6% year-over-year[143]. Costs and Expenses - Production costs rose to $783.6 million in Q1 2024, a 20.0% increase from $653.1 million in Q1 2023, mainly due to higher costs at the Canadian Malartic complex following the Yamana Transaction[13]. - Total cash costs per ounce increased to $901 on a by-product basis and $930 on a co-product basis in Q1 2024, compared to $832 and $861 respectively in Q1 2023[13]. - The LaRonde mine's production costs increased to $75,556 in Q1 2024 from $39,707 in Q1 2023, a rise of approximately 90%[111]. - The Canadian Malartic complex saw production costs rise to $126,576 in Q1 2024 from $57,291 in Q1 2023, reflecting an increase of about 121%[111]. - Total cash costs per ounce on a co-product basis were $930, compared to $861 in the previous year, reflecting a 8.0% increase[143]. Assets and Liabilities - Total assets increased to $28.8 billion as of March 31, 2024, up by $0.1 billion from $28.7 billion as of December 31, 2023[79]. - Current assets rose to $2.25 billion as of March 31, 2024, compared to $2.19 billion as of December 31, 2023[79]. - Cash and cash equivalents totaled $524.6 million as of March 31, 2024, up from $338.6 million as of December 31, 2023[81]. - Total liabilities decreased to $9,160,071 as of March 31, 2024, from $9,262,034 at December 31, 2023[146]. - The total equity increased to $19,642,370 as of March 31, 2024, from $19,422,915 at December 31, 2023[146]. Financing and Credit Facilities - The company entered into a $2.0 billion unsecured revolving credit facility on February 12, 2024, drawing $200.0 million to repay a previous facility[7]. - The company replaced its $1.2 billion unsecured revolving credit facility with a $2.0 billion New Credit Facility, which includes an uncommitted accordion feature of $1.0 billion[88]. - As of March 31, 2024, the company had $1,998.9 million available for future drawdown under the New Credit Facility[88]. - The company’s investment grade credit ratings were upgraded to Baa1 by Moody's and BBB+ by Fitch, reflecting its strong financial profile and low leverage[82]. Shareholder Returns - The company declared a quarterly cash dividend of $0.40 per common share, totaling $157.3 million in Q1 2024, slightly up from $156.2 million in Q1 2023[88]. - The company repurchased 375,000 common shares for $19.9 million at an average price of $52.99 in Q1 2024, compared to 100,000 shares for $4.8 million at an average price of $47.75 in Q1 2023[86]. Exploration and Development - Exploration and corporate development expenses decreased to $51.2 million in Q1 2024 from $53.8 million in Q1 2023, mainly due to lower expenses in Finland[13]. - The company anticipates continued exploration and development efforts, with a focus on optimizing production and managing costs effectively in the upcoming periods[137].