Gold prices drive record revenue at Kittilä mine in Finland

The global gold market price has reached record highs this summer, directly impacting the revenue of the Kittilä mine, Europe’s largest gold mine located in Finland. In the first half of this year, Agnico Eagle Finland’s revenue totaled approximately €229 million, which is €27 million more than the same period last year. CEO Jani Lösönen attributes this increase primarily to the rising gold prices. Following previous production restrictions, the mine is now operating at full capacity, marking the highest revenue in its history.

The Canadian parent company, Agnico Eagle, reports that effective operations combined with the surge in gold prices have resulted in record cash flow for the company in three consecutive quarters. However, despite the rise in revenue, production costs at the Kittilä mine have also escalated due to inflation, a new mining mineral tax, and higher-than-expected mining expenses. Gold extraction has been lower than anticipated, with approximately half of the planned annual production of two million tons mined by the end of July. So far this year, around 110,000 ounces (approximately 3,400 kilograms) of gold have been produced, compared to about 113,000 ounces (3,500 kilograms) during the same timeframe last year. The gold content in this year’s mined ore has been lower than in the previous year.

According to the CEO, this fluctuation was expected and is a normal part of the mining lifecycle. The mine is on track to meet Agnico Eagle’s production goals for the year, albeit at the lower end of the range. Operations are anticipated to continue through the latter part of the 2030s; previously, estimates suggested the mine could last until around 2034 or 2035. Lösönen indicated that the mine’s life cycle plan is currently being updated, with production likely extending to at least 2036 or 2037, thanks to ongoing active exploration efforts.