Agnico Eagle reports record quarterly gold production of 542 koz in Q3 2021
(Kitco News) - Agnico Eagle Mines (NYSE: AEM) (TSX: AEM) today reported record quarterly gold production of 541,663 ounces (including Hope Bay) in Q3 2021, an increase of 10% compared to Q3 2020 (492,693 ounces).
The company said that higher gold production in Q3 2021, when compared to the prior-year period, was primarily due to strong performance at the company's mines, including higher gold grades and tonnage at the Meadowbank Complex, higher tonnage at the Meliadine, Canadian Malartic and Kittila mines, and higher gold grades at the LaRonde Complex.
This was partially offset by lower production at La India related to lower ore tonnage stacked due to high clay content and at Creston Mascota where only residual leaching remains.
The company added that its production guidance for 2021 remains unchanged at approximately 2,047,500 ounces of gold (including approximately 24,057 ounces and 2,100 ounces of pre-commercial gold production from the Tiriganiaq open pit at Meliadine and Amaruq underground project, respectively).
"Another strong quarterly operating performance, including record gold production, continues to demonstrate our ability to optimize our assets and steadily grow output over the next several years. During the quarter, the Abitibi and Meliadine mines continued to be key drivers to the company's ongoing operational success," said CEO Sean Boyd.
"These strong production platforms will be integral components in the proposed merger of equals with Kirkland Lake Gold, which was announced late in the quarter. The combination is expected to unlock additional value through the realization of significant operational synergies while creating a low risk global gold mining leader," added Boyd.
The company also reported quarterly net income of $114.5 million, or net income of $0.47 per share, for the third quarter of 2021, compared to a net income of $222.7 million or net income of $0.92 per share in Q3 2020.
The company explained that decrease in net income in Q3 2021 was primarily due to lower operating margins, unrealized losses for non-cash items related to mark-to-market adjustments on financial instruments, higher amortization of property, plant and mine development from higher production volumes and the contribution of the Hope Bay mine and higher exploration expenses, partially offset by foreign exchange gains.
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Colombia.