Key Highlights
•Record quarterly gold production – Payable gold production in the fourth quarter of 2020 was 501,445 ounces (including 15,504 ounces of pre-commercial gold production from the IVR open pit at the Meadowbank Complex and the Tiriganiaq open pit at Meliadine) at production costs per ounce of $771, total cash costs per ounce of $701 and all-in sustaining costs ("AISC") per ounce of $985. Payable gold production in the full year 2020 was 1,736,568 ounces (including 36,416 ounces of pre-commercial gold production from the IVR deposit, Tiriganiaq open pit, and Barnat pit at Canadian Malartic) at production costs per ounce of $838, with total cash costs per ounce of $775. Production costs, total cash costs per ounce and AISC per ounce exclude the pre-commercial production ounces from IVR, Tiriganiaq and Barnat.
•Optimization of existing assets supports 24% Growth in Expected Production from 2020 through 2024 – The mid-point of gold production guidance for 2021, 2022 and 2023 is 2.05, 2.1 and 2.125 million ounces, respectively. Gold production in 2024 is expected to be approximately 2.15 million ounces. At this time, gold production guidance excludes production from the new acquired Hope Bay deposits.
•Cost guidance for 2021 essentially in line with prior year's guidance – In 2021, total cash costs per ounce are forecast to be between $700 and $750. In 2021, AISC are forecast to be between $950 and $1,000 per ounce. Although the Company expects some variability in operating costs over the period, total cash costs per ounce and AISC per ounce are expected to average approximately $750 and $990 per ounce, respectively, through 2024. In 2021, capital expenditures are forecast to be approximately $803 million. Annual capital expenditures are expected to be approximately $750 million to $800 million through 2024.
•Gold mineral reserves increase to record level – Year-end 2020 gold mineral reserves increased by 12% to 24.1 million ounces of gold (348 million tonnes grading 2.15 grams per tonne ("g/t") gold). Approximately 1.1 million ounces of the increase comes from operating mines (primarily the LaRonde Complex, Canadian Malartic, Goldex, Meliadine, Pinos Altos and Kittila) with the balance coming from the Hammond Reef project. Gold contained in measured and indicated mineral resources decreased by 15% to 15.3 million ounces (341 million tonnes grading 1.40 g/t gold), largely due to conversion into mineral reserves. Inferred mineral resources increased by 9% to 23.4 million ounces (283 million tonnes grading 2.57 g/t gold), largely due to additions at the East Gouldie deposit at Canadian Malartic.
•2021 exploration budget increased by over 40% with a focus on expansion and conversion drilling at existing properties and delineation of new target areas – The exploration budget in 2021 has been increased to approximately $163 million. The focus will be on the expansion of mineral reserves and mineral resources at operating mines and pipeline projects. In addition, new target areas will be tested at LaRonde, Kittila, East Gouldie, Santa Gertrudis and Hope Bay.
•Near-Term Opportunities Support Production Growth in 2021 to 2023; Kittila and Meliadine expansions progressing as planned; Amaruq underground and Odyssey projects approved for development
?Kittila and Meliadine – At Kittila, the mill expansion was completed in the fourth quarter of 2020 and shaft sinking remains on budget. At Meliadine, the Phase 2 expansion remains on track with mill throughput expected to increase from an average of approximately 4,600 tpd in 2021 to 6,000 tpd in 2025.
?Amaruq underground project – First gold production is expected in 2022. Over the current estimated 5-year mine life, approximately 500,000 ounces of gold are expected to be produced with a positive impact expected on overall production and costs at the Meadowbank Complex in 2023 to 2026.
?Odyssey project – Initial production is expected in 2023 from the underground ramp. Shaft sinking and development to access the higher-grade East Gouldie deposit is expected to continue until the end of 2028. Starting in 2029, the mine is expected to produce an average of 545,400 ounces of gold per year (100% basis) at total cash costs per ounce of $630. Over an expected 17-year mine life, total payable gold production is expected to be approximately 6.93 million ounces (100% basis).
•Project pipeline provides future production optionality: Upper Beaver technical evaluations advancing; Hope Bay acquisition completed; Hammond Reef declares Initial Mineral Reserves
?Upper Beaver – 2020 drilling focused on infilling and expanding mineral resources. An internal technical study is expected to be completed at year-end 2021
?Hope Bay – In 2021, the Company expects to continue mining at the Doris deposit while undertaking optimization efforts, as well as initiating a property-wide exploration program and evaluating the Madrid and Boston deposits for future production. Hope Bay is expected to be approximately cash flow neutral in 2021 and is currently not included in the Company's production or cost guidance for 2021.
?Hammond Reef – A positive internal technical study was completed in 2020, resulting in the declaration of the first open pit mineral reserves of 3.32 million ounces of gold (123.5 million tonnes grading 0.84 g/t gold). Going forward, the Company will continue to evaluate optimization of the deposit and potential mining scenarios to further improve project economics.


Comment by Sean Boyd, Chief Executive Officer

Despite 2020 being very challenging, we ended the year with record quarterly gold production, our largest gold reserve base and our best ever safety performance as a result of the excellent work of our employees. With gold production expected to increase by approximately 300,000 ounces in 2021, combined with an anticipated decline in total cash costs per ounce of 6%, we expect to continue to generate strong net free cash flow in 2021 while we steadily advance our pipeline of growth projects. As we move forward, our focus will be on maximizing the full potential of our existing mines through mineral reserve additions and incremental production expansions while also building new projects like the recently approved underground mines at Canadian Malartic and Amaruq. At the same time, we will continue to look to strengthen our business and build additional value by adding projects with excellent potential to grow and become important cash flow generators, like the recently acquired Hope Bay project.

Financial Results
Improved Cash Flow Performance
Q4 2020 Q4 2019 FY 2020 FY 2019
Gold (ounces in thousands)1 501 495 1,737 1,782
Total cash costs ($ per ounce) $701 $745 $775 $673
Revenues from
mining operations (millions) $928 $753 $3,138 $2,495
Net income (millions) $205 $332 $512 $473
Net income per share (basic) $0.85 $1.39 $2.12 $2.00
Cash provided by operating
activities (millions) $404 $258 $1,192 $882

Note 1: Gold ounces pre-commercial production of:
• 10,995 ounces of gold from the IVR pit at the Meadowbank Complex and 4,509 ounces of gold from the Tiriganiaq deposit at Meliadine for the fourth quarter of 2020
• 18,930 ounces of gold from the Barnat deposit at Canadian Malartic, 10,995 ounces of gold from the IVR pit at the Meadowbank Complex and 6,491 ounces of gold from the Tiriganiaq deposit at Meliadine for 2020
• 3,137 ounces of gold from the Barnat deposit at Canadian Malartic in the fourth quarter 2019
• An aggregate of 85,699 ounces of gold from Meliadine, Amaruq, and the Barnat deposit at Canadian Malartic for 2019

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