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Agnico Eagle maintains outlook

Kitco News

Agnico Eagle (NYSE: AEM) (TSX: AEM) said today it had quarterly net income of $136.1 million, or net income of $0.56 per share for the first quarter of 2021.

Production and cost guidance were maintained for 2021. The company said it expected gold production in 2021 to be unchanged at approximately 2,047,500 ounces, while total cash costs per ounce and AISC per ounce continue to be forecast in the range of $700 to $750 and $950 to $1,000, respectively.

"The second quarter is now forecast to be the weakest production quarter. This relates to stronger than expected performance in the first quarter of 2021 and scheduled maintenance at several operations (LaRonde Complex, Goldex, Meadowbank Complex, Meliadine and Kittila) in the second quarter of 2021 that results in changes in the mining sequence which brings in slightly lower grades. Estimated payable gold production and costs for 2021 exclude any contribution from Hope Bay," wrote the company.

A quarterly dividend of $0.35 per share has been declared.

The company said it had higher margins compared to the same period a year prior. This quarter was an improvement from the same quarter a year prior.

"In the first quarter of 2021, the higher mine operating margins were primarily a result of strong operating performance at the LaRonde and Meadowbank complexes, the Meliadine and Canadian Malartic mines and the contribution from the recently acquired Hope Bay mine, and higher average realized metal prices. In the first quarter of 2020, gold production was negatively impacted by COVID-19 related reductions in mining activities along with short-term production ramp-up issues in Nunavut and in the high-grade West mine area at LaRonde.

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