Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) set new gold production records during the second quarter of 2023, raising gold production by 7.4 per cent in its first full quarter of ownership of the Canadian Malarctic mine in Quebec.
The gold producer announced its financial results for Q2, 2023 on Wednesday. Agnico produced 873,294 ounces with all-in sustaining costs (AISC) of USD$1,150 per ounce during Q2, 2023. This is an increase from its previous quarter, where it produced 812,813 ounces and AISC per ounce of $1,125.
Overall, the company reported a net income of $326.8 million with production costs of $851 per ounce of gold, which represents an increase of 20 per cent over its Q1 totals of $271.3 million. The company also possesses a cash position of $432 million, which dipped by 41 per cent from $744 million in Q1, owing to repayment of debts.
“In the second quarter, we had strong exploration results from Detour, Meliadine, Kittila and at Hope Bay, with the intersection of higher grade mineralization at the Madrid deposit,” said Ammar Al-Joundi, Agnico Eagle’s president and chief executive officer.
At the Detour Lake site, the company achieved a record quarterly throughput for the mill in the second quarter of 2023, with an improved mill availability of 92.8 per cent. Ongoing efforts to optimize the mill process and availability are progressing well, aiming to achieve and potentially exceed a throughput of 28.0 million tonnes per annum (Mtpa).
Additionally, the company is working on an underground mining scenario study based on a revised mineral resource model, with the results expected to be reported in the first half of 2024.
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Future goal is to increase gold production while keeping costs low
The company is also actively working on optimizing assets and infrastructure in the Abitibi Gold Belt in Quebec. Several internal evaluations are underway to explore potential production opportunities at the Macassa Near Surface and Amalgamated Kirkland deposits, as well as the Upper Beaver and Wasamac projects.
These evaluations include assessing the possibility of transporting ore via rail or truck to the company’s existing processing facilities in the region. The goal is to increase future gold production while reducing capital costs and minimizing the environmental impact. The outcomes of these evaluations are anticipated to be disclosed in the first half of 2024.
The company allocated another $32 million in exploration funds after seeing positive results in the evaluations.
Agnico Eagle Mines share dipped 2.4 per cent to $67.21 on Thursday on the Toronto Stock Exchange.
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Abitibi draws miners and prospectors from all over the world
The Abitibi gold trend, located in the Canadian province of Quebec, is renowned for its rich mineral deposits and extensive history of gold exploration and production. Stretching over 450 kilometers, the Abitibi region is one of the world’s most prolific gold-producing areas.
The region’s gold rush began in the early 20th century. Today the Abitibi gold trend continues to be a focal point for major mining companies and junior exploration firms alike.
A few gold companies operating in the region include Iamgold Corporation (TSX: IMG) (NYSE: IMG), Osisko Mining (TSX: OSK), Eldorado Gold Corporation (TSX: ELD) (NYSE: EGO) and Val d’Or Mining Corporation (TSXV: VZZ).
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