(Kitco News) - Agnico Eagle Mines (NYSE: AEM) (TSX: AEM) reported today that in Q3 2022, the company's payable gold production was 816,795 ounces, up 51% compared to Q3 2021 (541,663 ounces).
The company said that its Q3 2022 gold production was higher y-o-y primarily due to the inclusion of the production from the Detour Lake, Fosterville and Macassa mines, adding that this was partially offset by the cessation of gold production in 2022 at Hope Bay and lower production at the company's Pinos Altos mine and the LaRonde complex.
The company’s production costs per ounce in Q3 2022 were $804, compared to $852 in the prior-year period, while total cash costs per ounce in Q3 2022 were $779, compared to $784 in the prior-year period.
According to a news release, the company’s production costs per ounce and total cash costs per ounce decreased when compared to the prior-year period primarily as a result of the combination of operations following the merger with Kirkland Lake Gold.
In Q3 2022, Agnico Eagle reported net income of $79.6 million ($0.17 per share). This compares with Q3 2021, when net income was $119 million.
The company explained that the decrease in net income in Q3 2022 compared to the prior-year period is primarily due to unrealized mark-to-market losses on foreign exchange hedges, higher exploration and amortization costs due to the inclusion of the Detour, Fosterville and Macassa mines and higher general and administrative expenses, offset by higher mine operating margins.
In the first nine months of 2022, the company reported net income of $465.2 million ($1.08 per share). This compares with the first nine months of 2021, when net income was $460.6 million ($1.89 per share). The increase in net income in the first nine months of 2022 compared to the prior-year period is primarily due to higher mine operating margins, it said.
Agnico Eagle expects its payable gold production in 2022 to remain unchanged at between 3.2 and 3.4 million ounces with total cash costs per ounce and AISC per ounce expected to be near the top end of the guided ranges of $725 and $775 and $1,000 and $1,050, respectively, as a result of continued inflationary cost pressures.
"In the third quarter of 2022, the company posted the best safety performance in its 65 year history and delivered solid operational results. With a strong first nine months of the year, the company is tracking well to deliver on its production and cost guidance in 2022," commented President and CEO Ammar Al-Joundi. "Despite headwinds from a lower gold price and cost inflation, the company's financial position remains strong. It gives us strategic flexibility and provides us with the ability to continue advancing our key development projects and exploration programs while maintaining capital returns to our shareholders."
Agnico Eagle is a senior Canadian gold mining company, producing precious metals from operations in Canada, Australia, Finland, and Mexico. It has a pipeline of exploration and development projects in these countries as well as in the United States and Colombia.
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