CA - Agnico Eagle Mines: Gold Reserves Continue To Grow

2024-06-12 18:10:18 ET

Summary

• Agnico Eagle Mines Limited released another solid reserve update earlier this year, surpassing the 50.0 million ounce reserve mark for gold ounces.
• Notably, its two largest producing assets have 20+ year mine lives that look like they could ultimately grow to 30-year mine lives and growing production profiles, given their exploration success.
• In this update, we'll dig into Agnico's reserve update, how reserves stack up vs. peers and why it remains a premier way to gain gold exposure if bought on pullbacks.

The Q1 Earnings Season has passed for the Gold Miners Index ( GDX ) with solid results across the board with the bulk of producers reporting margin expansion. However, even more important than the Q1 and year-end 2023 results were each company's year-end resource/reserve statements, which provide a glimpse into how they are succeeding regarding replacing their mined depletion each year and how reserves per share are trending. Agnico Eagle Mines Limited ( AEM ) was one of the first companies to report its results, which we'll dig into below:

All figures are in United States Dollars unless otherwise noted. G/T = grams per tonne of gold. GEOs = gold-equivalent ounces.

Total Mineral Reserves

Agnico Eagle reported its year-end reserves in late February, reporting total reserves of ~53.8 million ounces of gold (1,287 million tonnes at 1.30 grams per tonne of gold), an 11% increase from the year-ago period. The growth in reserves was related to declaring initial reserves at East Gouldie, which is part of its new Odyssey Mine (Canadian Malartic Underground) at Canadian Malartic, and purchasing the other half of Canadian Malartic from Yamana in Q1 2023. Meanwhile, two of its high-grade mines, Fosterville and Macassa, reported 102% and 171% of reserves, respectively....

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