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'Strong quarter by any measure' - Agnico Eagle's Ammar Al-Joundi talks Q1

Kitco News

(Kitco News) - Agnico Eagle CEO Ammar Al-Joundi is confident the company will meet this year's guidance.

Al-Joundi was interviewed by Kitco on Thursday after the release of the company's Q1. In September Agnico Eagle (TSX: AEM) completed its merger with Kirkland Lake Gold. Ammar Al-Joundi was tapped to the lead the new company in February. Measured by gold production, the newly-merged Agnico is top three gold miner.

Al-Joundi said the company was challenged by COVID-19 slowdowns in Q1. He said subsequent quarters should see higher production.

"It was a very good start to the year, and we are very confident on our guidance of 3.2 to 3.4 million ounces," said Al-Joundi. "[It was a] strong quarter by any measure, particularly given the challenges."

The company reported 661 koz in Q1 2022, up 28% compared to the same period a year ago (517 koz). Gold production was higher due to the inclusion of the production from Kirkland's former operations: Detour Lake, Macassa and Fosterville mines.

Al-Joundi said company synergies are ahead of schedule. Agnico expects corporate general administrative synergies of about $200 million in the first five years, up from previous guidance of $145 million, and up to $400 million over the next ten years, up from previous guidance of $320 million.

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