Caixin News Agency, December 4th - Minsheng Securities released an observation report on overseas gold stocks in the non-ferrous metal industry, which introduced the basic situation of Eagle Mining in Canada and expressed optimism about its future prospects.
Eagle Mining Company has a long history of development and rich experience in construction and operation. It has built and operated multiple gold mines worldwide, with a gold production of 107 tons in 2023. Acquiring KLG in 2022, achieving a leapfrog growth in gold production and becoming the world's third-largest gold company. Benefiting from the rise in gold prices, our performance has significantly increased over the past 23 years. In terms of capital expenditure, it has been increasing year by year since 2020, with a capital expenditure of around 1.653 billion US dollars in 2023.
In terms of reserves, as of December 2023, the company holds a total of 1674 tons of mine gold reserves and 1663 tons of equity reserves, of which 679 tons are underground mine reserves, accounting for 40.55%, with an average grade of 1.3g/t. In terms of production, the company's gold production has been continuously increasing in recent years, with the total gold production growing from 54 tons in 2020 to 107 tons in 2023, with a compound annual growth rate of 26.3%. In 2022, the company's production growth reached 52%, mainly due to the acquisition of KLG. From a cost perspective, the company's gold costs have slightly increased in recent years. From a mining perspective, the company's mines are mainly concentrated in Canada. The core assets of Canada are the Canadian Malartic Complex and Detour LakeMine gold mines, with gold equity production accounting for 17.6% and 19.7% of the company's total, respectively; Outside of Canada, the main assets are Fosterville in Australia, Kittila in Finland, and Pinos Altos in Mexico, with gold equity production accounting for 8.1%, 6.8%, and 2.8% of the company's total, respectively.
From the company's 2024-2026 guidance, the gold production of the company has remained stable in the past two years, but the company has numerous exploration projects with great potential for future growth: 1) The overall gold production of ongoing projects remains stable. The company expects a gold production of approximately 107 tons in 2024, with a central gold production of around 109 tons expected to remain stable from 2025 to 2026. 2) The exploration project is expected to continue advancing with incremental potential. The company currently has 5 key exploration projects with a total gold reserve of 274 tons, including Hope Bay project (100%), Hammond Reef project (100%), etc. The potential for future growth is promising.