Agnico Eagle Reports Rise In Income, Beats Expectations
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Net income was listed at $27.8 million, or 12 cents per share, up from $5 million, or 2 cents, in the same period a year ago.
Excluding special items, adjusted net income was $22.7 million, or 10 cents per share. This was above the consensus estimate of 4 cents, analysts with BMO Capital Markets and Credit Suisse reported. BMO added that the results were “mostly positive.”
Agnico Eagle attributed the rise in net income from a year ago mainly to lower amortization, lower income and mining taxes and higher realized gold prices. This was partially offset by lower gold sales volume, when excluding precommercial production at Meliadine and Amaruq.
The company reported gold production of 412,315 ounces, which includes the precommercial production ounces at Meliadine and Amaruq. Excluding that pre-commercial output, gold production was 380,469 ounces, down from 404,961 ounces a year ago. The company said the year-on-year decline was due to expected reduced throughput levels and grades at Meadowbank as the mine transitions to the Amaruq satellite deposit, plus mill maintenance shutdowns at LaRonde and Kittila.
All-in sustaining costs were $953 an ounce in the April-June period, compared to $921 a year ago. Agnico Eagle received an average gold price of $1,318 per ounce, up from $1,293 a year earlier, the company said.
"One of the key highlights in the quarter was the declaration of commercial production at our Meliadine mine in Nunavut,” said Sean Boyd, Agnico Eagle's chief executive officer. "With Meliadine ramping up to full production over the balance of the year and Amaruq on schedule to achieve commercial production in the third quarter of 2019, the company is well positioned for a strong second half from both a financial and operational perspective.”
Commercial production was declared at Meliadine on May 14.
Output guidance for 2019 was left at 1.75 million ounces of gold, including pre-commercial production from Meliadine and Amaruq. AISC are still expected to be in the range of $875 and $925.
The company declared a quarterly dividend of $0.125 per share.