Nunavut operations contribute to ‘record’ quarter for Agnico Eagle

Strong production at Agnico Eagle Mines Ltd.’s Nunavut gold mines played a role in achieving a “record” first quarter this year, the company says.

Agnico released its first quarterly financial report for 2024 last week.

CEO Ammar Al-Joundi said in a news release the company is reporting a “second consecutive quarter of record operating margins and record free cash flow.”

The company reported an adjusted net income of around US$377.5 million for the first quarter of this year from its mining operations around the world. That’s up from around US$282.3 million the previous quarter.

In addition to the Meliadine gold mine and the Meadowbank complex in Nunavut’s Kivalliq region, Agnico operates mines in northern Ontario, Quebec, Mexico, Finland and Australia.

Both Nunavut mines played a significant role in a successful quarter, representing close to 25 per cent of the company’s total production, according to Martin Plante, Agnico’s vice-president of operational excellence. Until last week, Plante was the company’s vice-president of Nunavut operations.

“The goal is to maintain [Nunavut’s operations] as a significant portion of the company,” he said in an interview.

Both mines saw an increase in gold production in the first quarter of this year compared to the same period last year.

Meliadine produced 95,725 ounces of gold in the first quarter of this year, compared to 90,467 ounces in the first quarter of 2023.

Meadowbank produced 127,774 over the same period this year, compared to 111,110 in the first quarter last year.

Quarterly success may vary for a few reasons, including changes to operating costs, the price of gold and production levels, Plante said.

The price of gold increased to US$2,062 per ounce on March 31, 2024 from $1,892 on that date in 2023.

As of Thursday, an ounce of gold had a market value of US$2,292.19 per ounce, according to Business Insider. The price has been steadily rising since the beginning of the year. On Jan. 1, the price per ounce was US$2,045.85.

Production itself can change from quarter to quarter, caused by animal migrations or fluctuations in the quality of ore, Plante said.

“It’s always good news to have a good quarter because it means that the operation is in good health and that the jobs could be sustained for the longer term,” he said.

Agnico’s total Nunavut workforce is 3,579 people across the two mines and its Hope Bay site, which is currently under exploration, according to Natalie Frackleton, the company’s director of external communications.

A presentation made at the Nunavut Mining Symposium last month in Iqaluit said Inuit fill 400 of these positions.