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Strong quarterly free cash flow drives 75% increase in dividend at Agnico Eagle

Kitco News

Agnico Eagle (NYSE:AEM) announced its Q3 in October.

Net income per share was 92 cents in Q3, up from 32 cents during the same quarter a year ago.

The company said gold production returns to near-record levels seen in the fourth quarter of 2019. Payable gold production in the third quarter of 2020 was 492,693 ounces at production costs per ounce of $865, total cash costs per ounce of $764 and all-in sustaining costs per ounce (AISC) of $1,016.

Production costs, total cash costs per ounce and AISC per ounce exclude the pre-commercial production ounces from Barnet and Tiriganiaq.

Operations have rebounded strongly post second-quarter 2020 COVID-19 interruptions. In the third quarter of 2020, new operational records were established at several of the company's mines.

Full year 2020 production guidance was unchanged at 1.68 to 1.73 million ounces, while expected total cash costs per ounce and AISC per ounce continue to be forecast in the range of $740 to $790 and $1,025 to $1,075, respectively. The longer-term guidance is maintained.

Slight increase to 2020 capital expenditures reflect accelerated development spending. Capital expenditures in 2020 are expected to be approximately $720 to $740 million (compared to previous guidance of $690 million).

Strong quarterly free cash flow drives 75% increase in dividend. On the back of record quarterly results, a quarterly dividend of $0.35 per share has been declared. The previous quarterly dividend was $0.20 per share.

CORRECTION: Q3 was dated incorrectly. Q3 was released in October, not January. Story has been updated.

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