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Agnico Eagle Mines records Q1 loss

Kitco News

Agnico Eagle Mines (NYSE:AEM) reported today a quarterly net loss of $21.6 million, or net loss of $0.09 per share, for the first quarter of 2020.

Agnico attributed the loss to non-cash foreign currency translation losses on deferred tax liabilities and mark-to-market derivative losses on financial instruments.

Cash flow increased thanks to selling more gold ounces and higher realized prices. In the first quarter of 2020, cash provided by operating activities increased to $163.4 million, as compared with the first quarter of 2019 when cash provided by operating activities was $148.7 million ($170.8 million before changes in non-cash components of working capital).

Agnico Eagle estimated this year's gold production. The total is expected to be 1.63 to 1.73 million ounces (including pre-commercial production from the Barnat deposit at Canadian Malartic and the Meliadine Phase 2 expansion), compared to withdrawn guidance of 1.875 million ounces.

The company expects gold production to gradually ramp up in Quebec, Mexico and Nunavut in the second quarter of 2020 and average approximately 480,000 to 500,000 ounces per quarter in the second half of 2020.

"The production guidance assumes the return to normal operations by July 1, 2020, however, there could be additional measures relating to the COVID-19 pandemic that could negatively affect productivity at the Company's mining operations. The previous gold production guidance for 2021 and 2022 remains unchanged with a mid-point of 2.05 million and 2.10 million ounces, respectively.

The previous gold production guidance for 2021 and 2022 remains unchanged with a mid-point of 2.05 million and 2.10 million ounces, respectively.

Agnico said the costs relating to the temporary suspension of operations was just $2.3 million.

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