Agnico Eagle Mines (NYSE:AEM), the third-largest gold miner, reported outstanding performance for 2024. The company generated strong financial and operational results while maintaining a cost-conscious approach.

"Our focus on cost control and capital discipline, combined with a strong gold price environment, has resulted in record operating margins, significant debt reduction, and nearly $1 billion returned to shareholders," CEO Anmar Al-Joundi stated in the news release.

The miner produced 3.49 million ounces of gold in 2024, beating its midpoint guidance and marking another year of stable output. For Q4, the firm reported 847,401 ounces at an all-in-sustaining cost (AISC) of $1,316 per ounce, while the full-year AISC stood at $1,239 – in line with expectations.

Agnico Eagle generated a record-setting $2.14 billion annual free cash flow, with operational cash flow reaching $3.96 billion. The management used this success to significantly reduce the net debt, cutting it by $1.3 billion and bringing it down to only $217 million by year-end.

Operationally, several of Agnico Eagle's key mines performed well. Detour Lake achieved a record quarterly throughput of 77,000 tons daily, with a planned increase to 79,450 tons by 2028. The Canadian Malartic mine continued progressing development at its Odyssey project, with ramp and shaft sinking activities advancing on schedule.

The Hope Bay project saw strong exploration success, increasing indicated mineral resources at the Madrid deposit's Patch 7 zone. Meanwhile, Fosterville, Macassa, LaRonde, and Meliadine contributed to mineral reserve replacement, helping the company increase gold reserves to a record 54.3 million ounces.

The company remains committed to exploration, with an estimated $290 million to $310 million allocated for 2025. The primary focus will be extending mine life, converting resources into reserves, and unlocking the full potential of key assets like Detour Lake Underground and East Gouldie at Canadian Malartic.

Looking ahead, Agnico Eagle has issued steady annual guidance for gold production of between 3.3 million and 3.5 million ounces from 2025 to 2027. While production in 2025 and 2026 is expected to be slightly lower due to the deferral of processing lower-margin ore, output in 2027 is set to benefit from increased contributions at Canadian Malartic, LaRonde, and Macassa.

Regarding shareholder returns, the company repurchased 248,700 shares for $20 million in the fourth quarter and plans to continue opportunistic buybacks under its normal course issuer bid. Management also reaffirmed the $0.40 dividend, which might be slightly disappointing to shareholders, as the last dividend increase occurred in Q1 2022.

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