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Agnico's Q3 benefits from 'monthly or quarterly production records'

Kitco News

Agnico Eagle Mines (NYSE:AEM) reported today quarterly net income of $222.7 million, or net income of $0.92 per share, for the third quarter of 2020.

In the first nine months of 2020, the company reported net income of $306.4 million, or $1.27 per share. This compares with the first nine months of 2019, when net income was $141.5 million, or $0.60 per share.

Payable gold production in the third quarter of 2020 was 492,693 ounces, up from 476,937 ounces produced during the same quarter a year ago.

Agnico said its operations performed well.

"Despite ongoing challenges related to the COVID-19 pandemic, Agnico Eagle's operations had strong performance in the third quarter of 2020. Many of our operations set monthly or quarterly production records, which is a testament to the hard work of our employees and the continued support of our local communities in these difficult times", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "This solid operational performance, coupled with a record realized gold price, resulted in strong quarterly free cash flow generation."

The company has increased its increased its quarterly dividend by 75%.

Agnico said cash and cash equivalents decreased slightly to $321.5 million compared to $336.4 million at the end iof June. The change was due to a July repayment of the $250 million which was drawn on the company's unsecured revolving bank credit facility, largely offset by the strong cash flow generation in the quarter.

Agnico Eagle said its outstanding balance on the company's unsecured revolving bank credit facility is now nil, and available liquidity under this facility is $1.2 billion, not including the uncommitted $300 million accordion feature.

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