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AGNICO EAGLE REPORTS SECOND QUARTER 2022 RESULTS - STRONG OPERATIONAL PERFORMANCE DRIVES RECORD QUARTERLY GOLD PRODUCTION; PRODUCTION AND COST GUIDANCE REITERATED FOR 2022; UPDATED DETOUR LAKE MINE PLAN BASED ON 38% INCREASE IN MINERAL RESERVES

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Cision

Stock Symbol: AEM (NYSE and TSX)

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

TORONTO, July 27, 2022 /PRNewswire/ - Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the second quarter of 2022.

Second quarter of 2022 highlights:

  • Record gold production and strong earnings and cash flow generation in the second quarter of 2022 – Payable gold production1 in the second quarter of 2022 was 858,170 ounces at production costs per ounce of $766, total cash costs per ounce2 of $726 and all-in sustaining costs ("AISC") per ounce3 of $1,026. These results include the first full quarter of production following the completion of the merger between Agnico Eagle and Kirkland Lake Gold Ltd. ("Kirkland Lake Gold") on February 8, 2022 (the "Merger"). For the second quarter of 2022, the Company reported quarterly net income of $0.61 per share, with adjusted net income4 of $0.76 per share. Operating cash flow was of $1.39 per share

________________________________

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 Production costs per ounce and total cash costs per ounce are non-GAAP ratios that are not standardized financial measures under the financial reporting framework used to prepare the Company's financial statements and, unless otherwise specified, is reported on a by-product basis in this news release. For the detailed calculation of production costs per ounce and the reconciliation to production costs and for total cash costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".

3 AISC per ounce is a non-GAAP ratio that is not a standardized financial measure under the financial reporting framework used to prepare the Company's financial statements and, unless otherwise specified, is reported on a by-product basis in this news release. For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".

4 Adjusted net income and adjusted net income per share are non-GAAP measures that are not standardized financial measures under the financial reporting framework used to prepare the Company's financial statements. For a reconciliation to net income and net income per share see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".

  • Ontario and Nunavut platforms drive solid operational performance – Gold production and costs in the second quarter of 2022 were better-than-expected primarily due to positive grade reconciliation at Amaruq and Detour Lake and productivity improvements at Macassa. Better grade performance allowed Amaruq to have its best operational quarter since start up with payable production of 96,698 ounces of gold at production costs per ounce of $1,110 and total cash costs per ounce of $993. In total, Nunavut payable production was 194,270 ounces of gold at production costs per ounce of $997 and total cash costs per ounce of $915. In Ontario, payable production was 256,777 ounces of gold at production costs per ounce of $664 and total cash costs per ounce of $626. The strong operational performance in the second quarter of 2022 puts the Company in a good position to deliver on 2022 guidance forecasts

  • Gold production, cost and capital expenditure guidance reiterated for 2022 – Expected payable gold production in 2022 remains unchanged at between 3.2 and 3.4 million ounces with total cash costs per ounce and AISC per ounce between $725 and $775 and $1,000 and $1,050, respectively. Given that inflationary pressures are expected to continue in the second half of 2022, the Company believes that total cash costs per ounce and AISC per ounce could trend towards the top end of these ranges. Gold production in the second half of 2022 is expected to be approximately equally split between the third and fourth quarters. Total expected capital expenditures (excluding capitalized exploration) for 2022 remain estimated to be approximately $1.4 billion. Guidance for 2022 includes production, costs and capital for the period commencing January 1, 2022 for the Detour Lake, Macassa and Fosterville mines

  • Inflationary environment expected to remain challenging in the second half of 2022 – During the first half of 2022, cost pressures were largely offset by strong operational performance, optimization and cost saving initiatives, positive foreign exchange impacts (weaker Euro and Canadian and Australian dollars) and currency and fuel hedging programs. In the second half of 2022, the Company's focus will continue to be on increasing operational efficiencies and cost optimization at all mining operations. In addition, the Company anticipates continuing to opportunistically add to operating currency and fuel hedges

  • Corporate synergies largely completed and exceed initial estimate; Focus shifts to delivering operational synergies and strategic optimizations – Corporate synergies related to the Merger (approximately $40 million to date) have been the primary driver of realized synergies in 2022. While the realization of the operational synergies and strategic optimization will be a multi-year endeavour, further progress to identify and secure opportunities was made in the second quarter of 2022 including:

  • Detour Lake Mine update – A recently completed technical evaluation shows increased mineral reserves, a more robust mine plan and potential for exploration and production upside – Among other things, the new technical evaluation lowers the mine plan's risk, extends expected mine life by 10 years to 2052, increases gold reserves by 38% (or 5.6 million ounces ("Moz")) to 20.4Moz (835.1 million tonnes at 0.76 grams per tonne ("g/t") of gold), increases recovered gold by 38%, increases production in 2028 to 2031 by 0.4Moz (reduces a dip in production that was in previous mine plan), increases production in 2032 to 2042 by 1.8Moz, increases production in 2043 to 2052 by 3.0Moz, has higher average grades and lowers average costs for period between 2022 and 2042. The Detour Lake mine continues to have strong exploration upside primarily to the west and at depth, suggesting potential for an underground mine and extensions to the current open pits. The Company is evaluating additional scenarios to potentially increase mill throughput beyond 28.0 million tonnes per year ("Mtpa") after 2025. In addition, the Company is assessing the potential for Detour Lake to increase production to 1.0 million ounces or more per year. The Company expects to have an initial assessment on this potential completed in late 2023

  • Drilling at Detour Lake has encountered significant intersections that extend the deposit two kilometres west of the current pit outline – Drilling has encountered gold-bearing mineralization along the Sunday Lake Deformation Zone and has continued to intersect a key gold-bearing chloritic-greenstone geological marker horizon found in both the Main Pit and West Pit zones. Highlights include 32.3 g/t gold over 4.8 metres at 955 metres depth (a two kilometre step-out hole), 2.9 g/t gold over 29.7 metres at 305 metres depth and 6.0 g/t gold over 32.7 metres at 481 metres depth. The Company plans drilling to further investigate the westerly trend of the deposit to assess the potential for pit extensions and underground mining

  • Key Exploration and Development Projects Continue to Advance

  • Strong investment grade balance sheet; $125M debt repayment in April 2022 and commencement of normal course issuer bid ("NCIB") in June 2022 – On April 7, 2022, the Company repaid with cash the $125 million 6.77% Series C senior notes at maturity. At June 30, 2022, the Company's net debt5 totaled $434.3 million. Subsequent to the quarter end, the Company repaid with cash the $100 million 4.87% Series C senior notes at maturity on July 24, 2022, further reducing the Company's indebtedness. The Company's NCIB was initiated in June 2022 and 453,000 common shares were repurchased in the second quarter of 2022 for $22.3 million. Under the NCIB, the Company is authorized to purchase up to $500 million of its common shares (up to a maximum of 5% of its issued and outstanding common shares)

  • A quarterly dividend of $0.40 per share has been declared

"In the second quarter of 2022 the Company set a new quarterly production record driven by both strong operational and safety performance. In Nunavut, Amaruq had a record quarter for both costs and production, and the Ontario mines exceeded forecast. This strong production performance led to better than expected earnings and cashflow and puts us in a good position to deliver on 2022 guidance forecasts, despite ongoing inflationary cost pressures," said Ammar Al-Joundi, Agnico Eagle's President and Chief Executive Officer. "During the quarter, exploration continued to deliver exciting results at Detour Lake, Odyssey and Hope Bay. I am particularly excited by the step-out drilling at Detour which suggests good potential for an underground operation and extensions to the current open pits. A number of opportunities to improve the mining operations and enhance production are currently under evaluation, and the Company's long-term vision for Detour Lake is to increase production to 1.0 million ounces per year or more," added Mr. Al-Joundi.

______________________________

5 Net debt is a non-GAAP measure that is not a standardized measure under the financial reporting framework used to prepare the Company's financial statements. For a reconciliation to long-term debt see "Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Long-Term Debt to Net Debt". See also "Note Regarding Certain Measures of Performance".


Second Quarter 2022 Financial and Production Results

In the second quarter of 2022, net income was $275.8 million ($0.61 per share). This result includes the following items (net of tax): a non-cash fair value adjustment on inventory sold during the quarter related to the Merger included in production costs of $27.1 million ($0.06 per share), mark-to-market losses of $18.4 million ($0.04 per share) on the Company's investment portfolio, foreign currency translation losses on deferred tax liabilities of $14.6 million ($0.03 per share), derivative losses on financial instruments of $11.2 million ($0.02 per share), non-cash foreign currency translation gains of $10.3 million ($0.02 per share), severance costs of $8.1 million ($0.01 per share) and various other adjustment losses of $2.2 million ($0.01 per share). Excluding these items would result in adjusted net income6 of $347.1 million or $0.76 per share for the second quarter of 2022. For the second quarter of 2021, the Company reported net income of $196.4 million ($0.81 per share).

Included in the second quarter of 2022 net income, and not adjusted above are care and maintenance costs net of tax of $5.7 million ($0.01 per share) and a non-cash stock option expense of $3.2 million ($0.01 per share).

In the first six months of 2022, the Company reported net income of $385.6 million ($0.92 per share). This compares with the first six months of 2021, when net income was $341.6 million ($1.40 per share).

For financial reporting purposes, the Merger was determined to be a business combination with Agnico Eagle identified as the acquirer. As a result, the purchase consideration was allocated to the identifiable assets and liabilities of Kirkland Lake Gold based on their fair values as of February 8, 2022 (the "Purchase Price Allocation") and was recorded in the first quarter of 2022. The finalization of the Purchase Price Allocation will take place within twelve months following the acquisition date.

Upon closing of the Merger, under the Purchase Price Allocation, any gold inventory held by Kirkland Lake Gold on February 8, 2022 was revalued at the forecasted gold price in the period the inventory was expected to be sold. The revalued inventory subsequently sold during the second quarter of 2022 resulted in additional production costs of approximately $39.2 million ($27.1 million after tax) during the quarter. The revalued inventory subsequently sold during the first six months of 2022 resulted in additional production costs of approximately $152.9 million ($105.9 million after tax). Given the extraordinary nature of the fair value adjustment on inventory related to the Merger, this non-cash adjustment, which increased the cost of inventory sold during the quarter, was normalized from net income and net income per share and adjusted out of the total cash costs per ounce and AISC in the second quarter of 2022.

The increase in net income in the second quarter and first six months of 2022 compared to the prior-year period is primarily due to higher mine operating margins6 (from higher sales volumes following the Merger and higher realized metal prices). The overall increase in net income was partially offset by higher exploration costs and amortization due to the inclusion of the Detour, Fosterville and Macassa mines and higher general and administrative costs. In addition, higher losses on derivatives, other expenses and care and maintenance costs offset the higher operating margins.

In the second quarter of 2022, cash provided by operating activities was $633.3 million ($706.0 million before changes in non-cash components of working capital), compared to the second quarter of 2021 when cash provided by operating activities was $419.4 million ($444.6 million before changes in non-cash components of working capital). A non-cash fair value adjustment on inventory related to the Merger of $39.2 million was included in production costs and as result included in cash provided by operating activities before changes in non-cash components of working capital for the second quarter of 2022. The non-cash fair value adjustment on inventory was then reversed through changes in non-cash components of working capital.

Excluding the non-cash fair value adjustment on inventory of $39.2 million related to the Merger, cash provided by operating activities before changes in non-cash components of working capital was $745.2 million in the second quarter of 2022 and increased when compared to the prior-year period primarily due to higher sales volumes and higher realized prices. This included non-recurring costs related to the Merger of $10.8 million in severance costs.

___________________________

6 Operating margin is a non-GAAP measure. For a reconciliation to net income see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".


In the first six months of 2022, cash provided by operating activities was $1,140.7 million ($1,072.0 million before changes in non-cash components of working capital), compared to the first six months of 2021 when cash provided by operating activities was $786.0 million ($870.1 million before changes in non-cash components of working capital). Excluding the non-cash fair value adjustment on inventory of $152.9 million related to the Merger, cash provided by operating activities before changes in non-cash components of working capital was $1,224.9 million in the first six months of 2022.

The increase in cash provided by operating activities in the second quarter and first six months of 2022, compared to the prior-year periods, is primarily due to higher net income driven by higher sales volumes following the Merger and higher realized metal prices. This included non-recurring costs related to the Merger of $34.8 million in transaction costs and $56.8 million in severance costs.

In the second quarter of 2022, the Company's payable gold production was a record 858,170 ounces. This compares to quarterly payable gold production of 526,006 ounces in the prior-year period.

In the first six months of 2022, the Company's gold production was a record 1,518,774 ounces. Including the entire first six month's production from the pre-Merger Kirkland Lake Gold mines, total gold production in the first half of 2022 was 1,664,499. This compares to payable gold production of 1,042,810 ounces in the first six months of 2021, which included 17,176 ounces and 348 ounces of pre-commercial production of gold at the Tiriganiaq open pit at Meliadine and Amaruq underground project, respectively.

Gold production in the second quarter of 2022 and the first six months of 2022, when compared to the prior-year periods, was higher primarily due to the inclusion of the production from the Detour Lake, Fosterville and Macassa mines. This was partially offset by the cessation of gold production in 2022 at the Hope Bay mine following the Company's decision to dedicate the infrastructure to exploration activities and lower production at the Company's Pinos Altos mine, as a result of lower tonnage sourced from the underground mine.

Production costs per ounce in the second quarter of 2022 were $766, compared to $838 in the prior-year period. Total cash costs per ounce in the second quarter of 2022 were $726, compared to $748 in the prior-year period.

Production costs per ounce in the first six months of 2022 were $869, compared to $829 in the prior-year period. Total cash costs per ounce in the first six months of 2022 were $763, compared to $741 in the prior-year period. Including the entire first six month's production from the pre-Merger Kirkland Lake Gold mines, total cash costs per ounce in the first six months of 2022 were slightly below the mid-point of 2022 cost guidance.

In the second quarter, production costs per ounce and total cash costs per ounce decreased when compared to the prior-year period primarily due to lower minesite costs per tonne. Total cash costs per ounce also decreased when compared to the prior-year period due to the fair value adjustment on inventory sold during the second quarter, partially offset by lower by-product metal revenue from lower silver and zinc production in 2022. In the first six months of 2022, production costs per ounce and total cash costs per ounce increased when compared to the prior-year period primarily due to higher minesite costs per tonne and lower production at various operations in the first three months of the year. A detailed description of the minesite costs per tonne at each mine is set out below.

AISC per ounce in the second quarter of 2022 were $1,026, compared to $1,037 in the prior-year period. AISC per ounce in the first six months of 2022 were $1,051, compared to $1,022 in the prior-year period.

AISC per ounce in the second quarter of 2022 decreased when compared to the prior-year period primarily due to lower total cash costs per ounce, partially offset by higher sustaining capital expenditures. 7 AISC per ounce in the first six months of 2022 increased when compared to the prior-year period primarily due to higher total cash costs per ounce in the first six months of 2022 and slightly higher sustaining capital expenditures and general and administrative costs.

Update on Key Value Drivers

Activities are progressing well at the Company's key exploration, development, and mine expansion projects. Highlights on the key value drivers are set out below and details on the various mine expansion projects (Kittila shaft, Meliadine Phase 2, Macassa Shaft #4 and Amaruq underground) are set out in the operational section of this news release.

Detour Lake Mine technical evaluation – Mineral reserves increased by 38% to 20.4 million ounces; Production profile improved and extended by 10 years; Ongoing exploration expected to further increase mineral resources; Future focus on potential expansion scenarios

_________________________________

7 Sustaining capital is a non-GAAP measure that is not a standardized financial measure under the financial reporting framework used to prepare the Company's financial statements. See "Note Regarding Certain Measures of Performance".


During the second quarter of 2022, the Company completed a technical evaluation on its Detour Lake Mine. This evaluation is a follow up to a National Instrument 43-101 – Standards of Disclosure for Mineral Projects Technical Report on the Detour Lake Operations that was filed by Kirkland Lake Gold in October 2021. In this evaluation, there are no significant changes to the geological setting, or the mining, milling and metallurgical processes used at the Detour Lake operations.

The goal of this technical evaluation was to convert a portion of the 2021 measured and indicated mineral resources into mineral reserves, update the life of mine plan and incorporate updated timelines on several mill optimization projects that were designed to increase the mill throughput to 28 Mtpa by 2025. Highlights from this evaluation include:

  • Lower risk mine plan

  • Added 10 years to the mine life (until 2052)

  • + 38% in gold reserves (+5.6Moz to 20.4Moz (835.1 million tonnes at 0.76 g/t gold))

  • + 38% in recovered gold:

  • Higher average grade, lower average costs, 2022 - 2042

The Company continues to evaluate the exploration upside and the potential to further expand production at the Detour Lake mine, including through the following:

  • Increasing mill capacity beyond 28.0 Mtpa – current permitting allows for processing of up to 32.8 Mtpa

  • Assessing the potential for underground mining

  • Installing an electric trolley assisted haulage system to improve haulage efficiency and support carbon emission reductions

  • Improving grade control processes

  • Further optimizing of mine and mill processes

  • Additional exploration potential in the region

Successful exploration in 2021 drove significant increase in mineral resources at year end 2021

Exploration drilling in 2021 provided additional evidence of a broad and continuous corridor of mineralization extending from the Main Pit through the Saddle Zone to the planned West Pit to a depth of at least 800 metres. This drilling resulted in a significant increase in mineral resources at Detour Lake at year end 2021.

Detour Lake's combined measured and indicated mineral resources totaled 15.2 million ounces of gold (574.9 million tonnes grading 0.83 g/t gold) at year-end 2021, which was a 194% increase in ounces (10.1 million ounces) compared to the 5.2 million ounces (134.1 million tonnes grading 1.21 g/t gold) estimated at December 31, 2020. The increase in measured and indicated mineral resources was driven by significant drilling success in 2021. In addition, Detour Lake contained inferred mineral resources of 1.3 million ounces of gold (53.3 million tonnes grading 0.78 g/t gold) at year-end 2021.

The Detour Lake mine was estimated to contain proven mineral reserves of 80.3 million tonnes grading 1.13 g/t gold for approximately 2.9 million ounces of gold and probable mineral reserves of 493.0 million tonnes grading 0.76 g/t gold for approximately 12.1 million ounces of gold, as of December 31, 2021.

Technical evaluation increases mineral reserves by 38% to 20.4 million ounces; mineral resources essentially unchanged at March 31, 2022

As part of the new Detour Lake technical evaluation, additional drill results were incorporated into the mineral resource and mineral reserve database and new estimates were completed as of March 31, 2022.

The Detour Lake mine is estimated to contain proven mineral reserves of 77.59 million tonnes grading 1.12 g/t gold for approximately 2.8 million ounces of gold and probable mineral reserves of 757.5 million tonnes grading 0.72 g/t gold for approximately 17.6 million ounces of gold, as of March 31, 2022. Proven and probable reserves now total 20.4 million ounces (835.1 million tonnes at 0.76 g/t gold), which is approximately a 38% increase from December 31, 2021 mineral reserve estimate net of the first quarter of 2022 depletion.

Detour Lake's combined measured and indicated mineral resources totaled 14.2 million ounces of gold (590.1 million tonnes grading 0.75 g/t gold) at March 31, 2022. The slight decline results from the conversion of mineral resources to mineral reserves at March 31 2022. In addition, Detour Lake contained inferred mineral resources of 1.8 million ounces of gold (75.2 million tonnes grading 0.75 g/t gold) at March 31, 2022. Total mineral resources are essentially unchanged from year-end 2021, despite a significant conversion to mineral reserves.

Additional details on the Detour Lake mineral reserves and mineral resources at December 31, 2021 are presented in the Company's news release dated February 23, 2022. Additional details on the Detour Lake mineral reserves and mineral resources at March 31, 2022 are presented in the Appendix of this news release.

New mine plan adds 5.1 million ounces of recovered gold; improved production in 2028 to 2031; and mine life extended by 10 years to 2052

The Company has undertaken several projects to gradually increase the mill throughput to 28.0 Mtpa by 2025. These include:

  • Pre-screening before the secondary crusher is expected to help de-bottleneck the grinding circuit and contribute an additional approximately 2.0 Mtpa to the mill throughput. The project is approximately 69% complete and is expected to be fully completed in the fourth quarter of 2022

  • The construction of four additional carbon-in-pulp leach tanks are expected to increase the leach retention time and capacity by approximately 20% and improve gold recovery. Engineering is expected to be completed in 2022; foundation work is planned to be completed in 2023 with the tank installation planned for 2024

  • An upgrade to the gravity circuit is planned which is expected to increase free gold recovery from 25% to approximately 40%. The project is approximately 53% complete with commissioning expected to be completed in the fourth quarter of 2022

  • A new automated laboratory to analyze samples from delineation and production drilling is being built. The project is approximately 78% complete, with commissioning expected in early 2023

  • An upgrade of the 230kV main substation is planned to improve the power quality at the mine. In addition, the upgrade will improve the site readiness for future power expansion for projects such as the trolley assist mine haulage system. The upgrade is expected to be completed in late 2023 or early 2024 depending on the timing of equipment deliveries

The Detour Lake mine plan has been revised to reflect the new mineral reserves and mineral resources as of March 31, 2022 and the steady progress on the mill optimization projects.

With the new mineral reserve addition, approximately 5.1 million ounces of gold have been added to the mine plan, and the mine life has been extended from 2042 through 2052. A chart showing the recovered ounce profile for the previously released 2020 life-of-mine plan ("LOMP") and the updated 2022 life-of-mine plan is presented below.

Detour Lake Mine – Recovered Ounce Profile – 2022 Life of Mine Plan vs 2020 Life of Mine Plan

Detailed production metrics, operating and capital cost details are presented in the summary table below.

Detour Lake – 2022 LOMP Update

(All numbers are approximate)

Economic Assumptions:



Gold Price ($/oz)

$1,500


USD:CAD

1.30


Effective tax rate (%)

16.5 %


Estimated total gold production

18.7

million gold ounces

Life of Mine (years)

29.9

years

Average metallurgical recovery

91.6 %


PRODUCTION METRICS







Ore Mined

Strip Ratio

Mill
Throughput

Milled
Grade

Gold
Production


(million
tonnes)

waste tonnes : Ore tonnes

(million
tonnes)

(g/)t

(thousand ounces)

2022 Q2-Q4*

31.0

1.59

20.0

0.94

543

2023

45.7

1.50

27.0

0.88

704.8

2024

43.9

1.89

27.7

0.86

705.9

2025

28.5

3.63

28.0

0.88

725.3

2026

31.5

3.18

28.0

0.89

735.5

2027

28.2

3.65

28.0

0.78

645.8

2028

33.6

2.89

28.0

0.74

604.0

2029

40.9

2.22

28.0

0.86

711.7

2030

48.1

1.72

28.0

1.01

844.1

2031

45.4

1.89

28.0

1.05

874.6

Average for Years 2032-2042

40.6

1.2

28.0

0.94

782.0

Average for Years 2043-2051

0

0.00

28.0

0.40

327.4

2052

0

0.00

4.3

0.37

46.6

Total LOM

823.8

1.70

835.1

0.76

18,700.6

OPERATING COSTS




Mine Costs (C$/t)

3.58

(including deferred stripping; years 2022-2042)

Rehandling costs (C$/t)

2.11

(years 2043-2052)


Processing and G&A (C$/t)

12.09








Minesite Costs (net
of deferred stripping)

Cash costs on a by-
product basis

All-in sustaining
costs per ounce


(C$/t milled)

($/oz)

($/oz)

2022 Q2-Q4*

20.46

643

911

2023

18.58

591

934

2024

18.58

605

821

2025

18.89

604

873

2026

18.68

590

836

2027

20.28

720

968

2028

22.68

845

1,086

2029

21.22

686

963

2030

19.42

539

730

2031

18.72

504

663

Average for Years 2032-2042

19.34

576

801

Average for Years 2043-2052

21.55

1,456

1,528

* 2022 Q2-Q4 Production and costs metrics are based on 2022 Guidance

CAPITAL COSTS




Development Capex
C$ (millions)

Sustaining Capital
C$ (millions)


MC$

MC$

2022 Q2-Q4

185.0

230.5

2023

224.0

308.6

2024

269.7

192.3

2025

289.4

247.2

2026

268.3

229.4

2027

320.4

203.0

2028

153.7

184.4

2029

94.3

251.4

2030

112.9

206.0

2031

161.8

176.1

Average for Years 2032-2042

37.2

178.8

Average for Years 2043-2052

0.0

27.9

Total LOM

2,489

4,451

Closure costs (C$, millions)

272


The new LOMP adds approximately 410,000 ounces of gold to the production profile in years 2028 through 2031, reducing a dip in the previous production plan. Peak annual production of approximately 900,000 ounces of gold is maintained in 2032 and 2033, and significant new production (an aggregate of approximately 2 million ounces of gold) has been added in years 2037 to 2042. Production starts to decline in 2043 when the current open pit mineral reserves are depleted. From 2044 to 2051, output remains relatively steady at just over 300,000 ounces of gold per year as production shifts to the processing of stockpiled lower grade material.

The Company believes that there is a good upside potential for additional exploration to add ounces to the mine plan in future years, which could result in an increase in production in the period 2044 to 2052.

Under the new LOMP, average total cash costs per ounce for the life-of-mine are approximately US$730. This represents an increase of approximately $60 per ounce over the previous estimates that were provided in the 2020 mine plan. The updated cash costs primarily reflect the following items:

  • Revised prices for fuel and consumables, especially in the earlier years of the operation

  • Increased electricity costs and increased carbon taxes

  • Higher maintenance costs related to increased equipment wear due to a longer mine life

  • Additional years of stockpile rehandling

The average AISC in the revised mine plan is approximately $920 per ounce, which is an increase of approximately $85 per ounce. This reflects the higher total cash costs and additional capital spending required due to the increased mine life. The primary capital items include:

  • Additional tailings storage and water management

  • Additional deferred stripping

  • Mobile equipment

Drilling continues to intersect mineralization west of the resource pit shells, further supporting the potential to extend the open pits; drilling has also encountered significant zones of both higher and lower grade mineralization extending the deposit two kilometres west of the current pit outline

In the exploration program at Detour Lake during 2022, Agnico Eagle has budgeted approximately $35.8 million for 194,000 metres of capitalized drilling to attempt to expand mineral resources at depth and to the west, and $10.1 million for 40,000 metres for expensed exploration drilling to continue investigating the Sunday Lake Deformation Zone to the east and west of the current pit's mineral resources.

During the first half of 2022 at Detour Lake, the Company completed 89 holes totalling 95,998 metres of capitalized drilling and 10 holes totalling 12,025 metres of expensed drilling. Approximately 84,660 metres of the drilling completed to date in 2022 was not included in the latest mineral reserve and mineral resource update, which utilized a database that closed in February 2022.

Drilling in the westerly plunge of the deposit has continued to return wide mineralized intervals including a higher grade portion that supports the potential to continue growing the "out-pit" mineralization, which now extends 2 km west of the current resource pit outline.

Highlights from recent drilling in the West Pit zone outside and to the west of the current resource pit outline include: hole DLM22-441A, which intersected 4.4 g/t gold over 15.4 metres at 224 metres depth, including 17.9 g/t gold over 3.2 metres at 218 metres depth, 3.8 g/t gold over 2.7 metres at 517 metres depth and 4.7 g/t gold over 2.7 metres at 630 metres depth; hole DLM-22-447, which intersected 4.7 g/t gold over 2.6 metres at 303 metres depth; and hole DLM-22-447W, which intersected 24.1 g/t gold over 3.6 metres at 426 metres depth and 4.3 g/t gold over 2.7 metres at 447 metres depth.

Highlights from drilling in the West Pit Extension zone further west outside the current mineral resource pit outline include: hole DLM22-437A, which intersected 2.9 g/t gold over 29.7 metres at 305 metres depth, including 21.2 g/t gold over 3.3 metres at 310 metres depth and 0.8 g/t gold over 28.0 metres at 350 metres depth; and hole DLM-22-458, which intersected 6.0 g/t gold over 32.7 metres at 481 metres depth, including 71.5 g/t gold over 3.3 metres at 492 metres depth, 2.7 g/t gold over 8.5 metres at 517 metres depth, 0.8 g/t gold over 30.6 metres at 560 metres depth and 1.1 g/t gold over 31.5 metres at 602 metres depth, including 3.2 g/t gold over 3.4 metres at 597 metres depth.

Regional exploration drilling in the West Pit Extension up to 2 km west of the West Pit mineral resources has encountered gold-bearing mineralization along the Sunday Lake Deformation Zone and has continued to intersect a key gold-bearing chloritic-greenstone geological marker horizon found in both the Main Pit and West Pit zones. Highlights include hole DLM22-448, which returned 32.3 g/t gold over 4.8 metres at 955 metres depth, and hole DLM22-453, which returned 3.2 g/t gold over 2.7 metres at 592 metres depth, 3.2 g/t gold over 2.7 metres at 610 metres depth, 6.0 g/t gold over 5.6 metres at 940 metres depth and 4.9 g/t gold over 3.7 metres at 1,019 metres depth.

[Detour Lake Mine – Plan Map and Composite Longitudinal Section]

The Company plans to continue drilling to further investigate the westerly plunge of the deposit to continue to assess the deposit's underground mining potential. This year's budget also incorporates a plan to investigate the Sunday Lake Deformation Zone along strike to the west and to the east of the mine.

More detailed results from the exploration program at Detour Lake will be presented in an exploration-focused news release on August 11, 2022.

Opportunities to further enhance the mining and milling operations

Several opportunities that may improve the mining operations and enhance the project economics are currently under evaluation. These include:

  • Additional modifications to the processing circuit to increase the capacity beyond the current 28.0 Mtpa rate. Three independent process improvement alternatives currently exist: screening and sorting of low-grade fines, pebble sorting of SAG mill discharge and evaluation of a new crushing circuit using high pressure grinding rolls. The evaluation of these alternatives also requires a review of the capacity of the existing equipment and plant modifications to achieve higher throughput rates. Current permitting allows for processing of up to 32.8 Mtpa

  • Investigation of the underground potential at Detour Lake based on results from the previous and current exploration programs. The underground potential is associated with the significant mineralization outside the planned final pit limits. Underground mining operations would likely be accessed via a ramp. Past high-level assessments indicated the potential for a 4,000 to 6,000 tonnes per day ("tpd") mining operation utilizing long hole stoping methods with grades ranging from 2.0 g/t to 3.0 g/t gold. The historical underground mining grade at Detour Lake was approximately 4.2 g/t gold. These assessments were limited in scope and did not include the results of the extensive exploration campaigns conducted in 2020 and 2021. The goal of the current exploration program is to better delineate the orebody and to test its continuity to the west and at depth

  • Increased levels of automation in the mine operation. The Company expects the recent upgrade of the mine network to 5G will enable higher levels of automation

  • Use of alternative energy sources to diesel with the intent of reducing greenhouse gas emissions and improving business sustainability and competitiveness. As part of this initiative, the Company is investigating the potential implementation of an electric trolley assisted haulage system to improve haulage efficiency and support carbon emission reduction

  • Alternate tailings impoundment and treatment. The Company is investigating different options for tailings disposal with a goal of reducing life-cycle costs and improving the construction of tailings facilities

  • Potential improvements to water treatment and discharge. The Company is assessing water treatment and discharge processes at Detour Lake, focusing on reducing water quality risks

In parallel with an aggressive continued exploration program at Detour, the Company is allocating significant resources to evaluate the concepts outlined above and assess the potential to increase production to 1.0 million ounces of gold per year or more. The Company expects to have an initial assessment on this potential completed in late 2023.

Odyssey Project – Underground Development and Surface Construction Progressing on Schedule and on Budget; Infill drilling at East Gouldie Deposit Expected to Upgrade Mineral Resources at Year-end 2022; Regional Exploration Extends East Gouldie to the West and East

In the second quarter of 2022, underground development and surface construction activities at the Odyssey project were on schedule and on budget, and inflationary cost pressures remained manageable.

Surface construction activities on the headframe, shaft house, waste silo and temporary sinking hoist building are all progressing as planned, with completion expected in the fourth quarter of 2022, after which shaft sinking activities will commence. Phase 1 construction of the paste plant and 120 kV powerline are on target for completion in the first quarter of 2023. Pre-commercial production from the Odyssey South orebody is expected to begin before the end of March 2023.

At the Odyssey underground, development activities will ultimately transition from a mining contractor to in-house crews. Hiring commenced in the second quarter of 2022. Underground development activities remain on target with the following activities planned to be completed in advance of the production startup:

  • Temporary emergency egress (fourth quarter of 2022)

  • Underground paste backfill piping network (first quarter of 2023)

  • Draw point development, stope preparation and drilling (fourth quarter of 2022 through first quarter of 2023)

  • Installation of main underground fans (third quarter of 2022)

At the Canadian Malartic mine in 2022, the Company has budgeted $11.9 million (50% basis) for 136,800 metres (100% basis) of exploration and conversion drilling focused on infill drilling at the East Gouldie deposit to improve confidence in the mineral resource, to continue the conversion of inferred mineral resources to indicated mineral resources and to refine the geological model. With ramp development continuing as part of the Odyssey Mine project, Canadian Malartic GP (the "Partnership") will complete further underground conversion drilling from the ramp in the remainder of 2022.

Twenty drills are currently active on the property, with four underground drills completing infill drilling on the Odyssey South deposit and 12 surface drills focused on infilling and expanding the East Gouldie mineralization and four drills active in regional exploration. The Partnership drilled 95,030 metres (100% basis) during the first half of 2022.

With the continued success at infilling East Gouldie at 75-metre spacing in the core of the deposit and some recent expansion to the west at depth, the Company expects a significant portion of the East Gouldie deposit to be classified as indicated mineral resources at year end 2022. The Company also expects that the core portion of the Odyssey South deposit will be classified as mineral reserves at year-end 2022.

A recent exploration highlight is hole MEX22-231, which returned 1.8 g/t gold over 62.9 metres at 1,580 metres depth in the western extension of the East Gouldie deposit approximately 225 metres west of the current mineral resources outline. This intercept is approximately halfway between the East Gouldie deposit and the Norrie Zone to the west and shows the potential for East Gouldie to connect with other mineral inventories in the Norrie and South Sladen mineralized zones that are not yet classified as mineral resources.

In regional exploration to the east, highlight hole RD21-4689AA drilled on the adjacent Rand Malartic property intersected 3.1 g/t gold over 3.0 metres at 2,537 metres depth, which extends the East Gouldie mineralized corridor eastward by 500 metres to approximately 1,700 metres east of the current mineral resources outline. Mineralization remains open to the east.

In addition, the Company is planning to spend approximately $4.1 million (50% basis) on 21,900 metres (100% basis) of exploration drilling to expand mineralization towards the east in the East Gouldie horizon and the new Titan zone at depth on the Rand property. Some drilling is also planned on the nearby East Amphi property to extend the Nessie and Kraken zones.

Kirkland Lake region – Macassa Shaft #4 Project Progressing on schedule; Drilling at the AK deposit expected to define Mineral Resource potential by year-end 2022; Infill drilling completed at Upper Beaver and new target areas being tested

At the Macassa mine, the focus for the second half of 2022 remains on completing the various infrastructure projects associated with Shaft #4 and ramping up production. All of the critical projects are on track to commission the shaft by the end of 2022.

At the AK deposit, an assessment is underway to evaluate the deposit as a potential ore source for the Macassa mine. If the evaluations are positive, AK ore could complement the mill feed at Macassa as early as 2024.

The underground ramp from Macassa has been extended by 615 metres year-to-date (of a planned 984 metres exploration drift). Two drills have been active underground with 3,068 metres completed in 24 holes. This drilling was focused on infill drilling of the higher-grade portions of the deposit (greater than 4 g/t gold) near the proposed bulk sample. Significant intersections returned to date include: 14.1 g/t gold over 6.5 metres at 222 metres depth in hole KLAK-010, 23.9 g/t gold over 2.0 metres at 112 metres depth in hole KLAK-011 and 14.9 g/t gold over 3.0 metres at 256 metres depth in hole KLAK-016. The underground program is on schedule for completion late in the fourth quarter of 2022 as planned.

A surface drill program is also underway at AK, and two drill rigs completed 10,136 metres in the second quarter of 2022. Drilling is designed to delineate shallow portions of the deposit that cannot be reached from the underground ramp. Results to date have confirmed grade thicknesses in the core of the zone. Drill highlights (over true widths) include:

  • 6.9 g/t gold over 6.7 metres at 138 metres depth in hole KLAKC22-148

  • 5.9 g/t gold over 6.0 metres at 147 metres depth in hole KLAKC22-146

  • 9.0 g/t gold over 9.2 metres at 171 metres depth in hole KLAKC22-165

  • 6.0 g/t gold over 7.7 metres at 125 metres depth in hole KLAKC22-160

  • 8.7 g/t gold over 7.6 metres at 146 metres depth in hole KLAKC22-162

The surface drilling program is expected to total approximately 17,000 metres and be completed in September 2022.

Results to date confirm that the AK mineralization is generally vertical and controlled by quartz-carbonate veinlet envelopes that pinch and swell vertically and laterally, varying from 1 to 15 metres locally with local high grade, visible gold intercepts.

At Upper Beaver, the infill drilling program was completed in the second quarter of 2022. This program was successful in filling gaps in the mineralization in the footwall zone and the infill drill results will be incorporated into the economic model. Several development scenarios are under review, some of which are evaluating the potential to use existing infrastructure at the Macassa mine or the Holt property, which is currently on care and maintenance.

Over the balance of the year, one drill will continue to test a new potential discovery (Zone 172) located approximately 500 metres southeast of the main mineralized zone. Additional holes will be drilled to test the North Basalt zone, which has yielded values up to 51.5 g/t gold over 5.0 metres at 672 metres depth in hole KLUB22-768.

Hope Bay – Drilling Activities Ramped Up in the Second Quarter of 2022; Larger Production Scenarios Continue to be Evaluated

Drilling is continuing to ramp up at Hope Bay, with 46,658 metres completed during the first half of 2022. Three drill rigs are now operating underground at the Doris deposit, three drill rigs are targeting deep extensions at Doris from surface and a seventh drill rig is operating at the Madrid deposit.

Drill results continue to show excellent potential at Doris at depth below the dike in the BTD Connector and BTD Extension targets and in the Doris Central extension to the south.

Recent highlights from BTD Connector include: hole HBD22-030, which intersected 12.2 g/t gold over 7.1 metres at 456 metres depth; and hole HBD22-008, which intersected 10.0 g/t gold over 3.6 metres at 379 metres depth. In conversion drilling in the northern portion of BTD Extension, hole HBDBE22-50888 intersected 20.9 g/t gold over 2.3 metres at 344 metres depth.

During the second half of the year at Doris, work will continue on extending the exploration drift and investigating the deposit from underground and surface drill rigs.

At Madrid, drilling is targeting the vertical extension in the Suluk zone. Field work is also underway between and around Doris and Madrid to validate high potential near-mine targets.

At the Boston deposit, maintenance work is underway to refurbish the camp before considering resuming activity there in 2023.

Exploration is expected to continue through 2023 while larger production scenarios are being evaluated. Detailed results from the 2022 exploration program at Hope Bay will be presented in an exploration-focused news release on August 11, 2022.

2022 Synergy and Optimization Benefits Ahead of Estimates and Schedule

In the second quarter of 2022, the Company continued work on the targeted synergy and optimization benefits from the Merger. The expected corporate level general and administrative ("G&A") synergies were realized faster than anticipated, and the Company now believes it has achieved annual savings higher than originally targeted. Progress continues largely at or above expectations with regards to the operational and strategic synergies, and the Company expects that 2022 Merger-related synergies will be at the top end of the previously disclosed range of $40 million to $60 million and the target of $2 billion of Merger-related synergy and optimization benefits will be achieved over the next ten years.

Expected Corporate G&A Synergies Surpassed, Annual Run-Rate Achieved

Corporate synergies continued to be the primary driver of realized synergies in the second quarter of 2022. The Company has now largely completed the work necessary to achieve the expected corporate synergies, realizing approximately $40 million to date, more than the original full-year 2022 estimate of $15 million to $25 million. The Company now anticipates being able to achieve an ongoing annual savings near or slightly more than the top end of the $40 million to $50 million range disclosed in the first quarter of 2022.

The key components of the realized corporate G&A synergies are:

  • Streamlining of the business resulting in personnel cost savings estimated to be approximately $27 million in 2022, expected to grow to $31 million by 2024

  • Lower finance and insurance costs of approximately $10 million on an ongoing basis

  • Reduction and consolidation of regional office space, resulting in savings of approximately $9 million (a combination of one-time and ongoing)

  • Streamlining of service contracts and the elimination of external service providers resulting in IT savings of $3.5 million in 2022, expected to grow to $5 million per year by 2025.

As a result of the success to date, the Company is revising upwards its expected corporate G&A synergies to up to $225 million before tax in the first five years (up from previous guidance of $200 million and initial guidance of $145 million) and to up to $425 million over the next ten years (up from previous guidance of $400 million and initial guidance of $320 million).

Operational Synergies Progress In Line with Expectations

The Company is maintaining its estimate for potential operational synergies in excess of $130 million per year ($440 million over five years, ramping up to $1.1 billion over 10 years). The realization of the operational synergies remains a longer-term endeavor, and progress to date is largely in line with expectations. The Company has identified specific opportunities and has put in place plans and resources to realize these opportunities. Examples include:

Item

Longer-term Target

Progress to Date

2022 Target

Achieved/Identified

Procurement

$35-$50M/yr by 2024

$10M

$6.5M

Energy Management

$30M-60M/yr by 2027

Advance studies

Preliminary studies ongoing

Maintenance Optimization

$30-50M/yr by 2028

Advance studies

Preliminary studies ongoing

Remote Monitoring and Data
Analytics

$20-$30M/yr by 2029

Advance studies

Preliminary studies ongoing

Detour Plan Optimization

$10-$15M/yr by 2024

$5M

$10-$15M/yr

Streamlining Doré Marketing

$2-3M/yr

$1M

$0.5M

Elimination of External Consultants

$2-3M/yr

$2M

$2M

Technology Acceleration

$10-20M/yr by 2025

$1M

$1M – Studies ongoing

TOTAL

$440M (5 years)

$1.1B (10 years)

$15-20M

$20-25M

  • Procurement – Vendor consolidation and a reorganization of the Canadian procurement team has led to savings of approximately $6.5 million year-to-date and the Company expects to reach $10 million of savings by the end of 2022

  • Energy Management – Energy monitoring and load management is expected to reduce operating costs by up to $60 million by 2027 with the deployment of peak levelling technologies, site power usage reviews and remote energy management

  • Maintenance optimization – The Company expects that use of remote operation data, improvement in general maintenance procedures due to best practices sharing across the Company, streamlined spare parts management and reduced shutdown durations will reduce maintenance costs and/or increase productivity by up to $50 million in aggregate yearly across all Agnico Eagle operations

  • Detour Plan Optimization – The optimization includes a modification in the open pit wall angles to reduce waste stripping costs as well as additional process plant availability. The Company expects that the open pit wall angle change could reduce overall costs by approximately $100 million over the life of mine while the increased availability at the mill could increase revenue by approximately $5 million per year

  • Technology Acceleration – Includes core scanning technology, use of photon assays in geology, use of drones in surveying and use of automation, battery-electric vehicles as well as trolley assisted hauling

The Company estimates the operational synergies and other cost reduction measures have the potential to reduce production costs by up to $10 per ounce in 2022 and by $30-$40 per ounce in later years. Given the work and complexity involved in attaining these synergies, and the volatile and inflationary price environment, these synergies have not been reflected in the 2022 cost guidance. The Company expects to incorporate these opportunities into the new 2023 forecast expected later this year.

Strategic Optimization Ongoing

The Company continues its review of strategic opportunities to reduce current and future expenditures as part of its project pipeline, maintaining the original estimate of up to $240 million over five years and $590 million over 10 years.

Mining the AK deposit from Macassa Infrastructure:

  • Work continues on accessing the AK ore body from the existing Macassa ramp

  • To date, 615 metres of a planned 984 metre exploration drift were developed and over 3,000 metres of definition drilling into the AK ore body were completed from underground. A surface drill program is also underway and is expected to be completed in the second half of 2022

  • As part of the regular life of mine planning process, the Company is considering the optimal timing of potentially feeding AK ore into the Macassa Mill (as previously disclosed, this could be as early as 2024)

Improved Budgeting and Costing:

  • Over the past three years, Agnico Eagle has been working on an initiative to more accurately measure and predict operating cost drivers

  • This initiative is in the process of being rolled out across all operations

  • It is anticipated that improved cost control from this initiative could result in operating costs savings of up to $30 million per year by 2026

Upper Beaver project update:

  • Work continues on evaluating the potential to use existing Kirkland Lake Camp infrastructure, to reduce capex and operating costs at the Upper Beaver Project

Strengthening Investment Grade Balance Sheet; Fitch Ratings' Credit Rating Upgrade and Commencement of Normal Course Issuer Bid in June 2022

On April 7, 2022, the Company repaid out of available cash the $125 million 6.77% Series C senior notes at maturity. Subsequent to the quarter end, the Company repaid out of available cash the $100 million 4.87% Series C senior notes at maturity on July 24, 2022, further reducing the Company's indebtedness. On June 16, 2022, Fitch Ratings upgraded its credit rating for Agnico Eagle to BBB+ from BBB with a Stable Outlook reflecting the Company's strong credit profile, along with the size and scale benefits arising from the Merger.

At June 30, 2022, the Company's net debt totaled $434.3 million. The NCIB was initiated in June 2022 and 453,000 common shares were repurchased for $22.3 million. Under the NCIB, the Company can purchase up to $500 million of its common shares (up to a maximum of 5% of its issued and outstanding common shares).

Cash and cash equivalents decreased to $1,006.9 million at June 30, 2022, from the March 31, 2022 balance of $1,062.0 million, primarily due to the debt repayment and purchases under the NCIB, partially offset by higher cash flow from operations (higher sales volumes and realized gold prices). As of June 30, 2022, the outstanding balance on the Company's unsecured revolving bank credit facility was nil, and available liquidity under this facility was approximately $1.2 billion, not including the uncommitted $600 million accordion feature.

Approximately 58% of the Company's remaining 2022 estimated Canadian dollar exposure is hedged at an average floor price above 1.27 C$/US$. Approximately 45% of the Company's remaining 2022 estimated Mexican peso exposure is hedged at an average floor price above 20.35 MXP/US$. Approximately 36% of the Company's remaining 2022 estimated Euro exposure is hedged at an average floor price of approximately 1.10 US$/EUR. Approximately 21% of the Company's remaining 2022 estimated Australian dollar exposure is hedged at an average floor price above 1.44 A$/US$. The Company's full year 2022 cost guidance is based on assumed exchange rates of 1.25 C$/US$, 20.00 MXP/US$, 1.20 US$/EUR and 1.32 A$/US$

Agnico Eagle is hedged approximately 43% on its remaining diesel exposure in 2022. Year to date, the Company has realized approximately $17 million in hedging gains related to fuel. In 2023, the Company is hedged approximately 26% on its diesel exposure. These hedges have partially mitigated the effect of inflationary pressures to date and are expected to provide a degree of protection against inflation going forward.

The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2022 and future guidance.

In order to maintain financial flexibility, and consistent with past practice, the Company intends to file a new base shelf prospectus in the third quarter of 2022. The Company has generally maintained a base shelf prospectus since 2002. The Company has no present intention to offer securities pursuant to the new base shelf prospectus. The notice set out in this paragraph does not constitute an offer of any securities for sale or an offer to sell or the solicitation of an offer to buy any securities.

Dividend Record and Payment Dates for the Second Quarter of 2022

Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on September 15, 2022 to shareholders of record as of September 1, 2022. Agnico Eagle has declared a cash dividend every year since 1983.

Expected Dividend Record and Payment Dates for the 2022 Fiscal Year

Record Date

Payment Date

September 1, 2022*

September 15, 2022*

December 1, 2022

December 15, 2022

*Declared

Dividend Reinvestment Plan

Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan

Capital Expenditures

In the second quarter of 2022, capital expenditures (including sustaining capital) were $364.2 million and capitalized exploration expenditures were $37.4 million, for a total of $401.6 million. In the first six months of 2022 capital expenditures (including sustaining capital) were $583.9 million and capitalized exploration expenditures were $67.7 million for a total of $651.7 million. Capital expenditures were lower than forecast in the second quarter and first six months of 2022 primarily due to the timing of the expenditures.

Total capital expenditures (excluding capitalized exploration) for 2022 remain estimated to be approximately $1.4 billion.

The following table sets out capital expenditures and capitalized exploration in the second quarter of 2022 and the first six months of 2022.

Capital Expenditures


(In thousands of U.S. dollars)







Capital Expenditures*


Capitalized Exploration


Three Months
Ended

Six Months
Ended


Three Months
Ended

Six Months
Ended


June 30, 2022

June 30, 2022


June 30, 2022

June 30, 2022

Sustaining Capital Expenditures






LaRonde complex

25,024

45,687


674

1,414

Canadian Malartic mine

16,346

27,080


Goldex mine

6,003

11,984


556

1,202

Detour Lake mine

73,974

86,616


Macassa mine

8,325

12,758


542

766

Meliadine mine

14,698

23,640


1,406

1,545

Meadowbank complex

13,367

24,171


...