Canadian gold major Agnico Eagle has again increased its gold guidance for 2018, adding another 200 000 oz to its production target for the year, following a strong operational third quarter.
The NYSE- and TSX-listed miner now expects to produce 1.60-million ounces in 2018, up from its previously-raised 1.58-million-ounce guidance. In the June quarter, the 2018 production estimate was increased from 1.53-million ounces.
Agnico Eagle, which operates in Canada, Finland and Mexico, produced 421 718 oz of gold at an all-in sustaining cost (AISC) of $848/oz in the September quarter, it reported on Wednesday.
Total cash cost and AISC for the year would be below the mid-point of the guidance range of $625/oz to $675/oz and $890/oz to $940/oz, respectively.
CEO Sean Boyd also provided more clarity on the group’s guidance for 2019, saying that it expected production to exceed 1.7-million ounces, which as the mid-point of the previous 2019 guidance.
He cited good progress at the Nunavut development projects and said that the Meliadine mine could start up earlier than previously thought.
At the end of September, construction at Meliadine – in the lower Arctic – was 89% completed and underground development had progressed to the first production stope entering the drilling phase. Commissioning of the process plant will start in the first quarter of next year, followed by the start of commercial production in the second quarter.
At Amaruq, the first ore is expected to start in the second quarter of 2019, with initial production from the Whale Tail deposit slated for the third quarter.
Recent drilling at Amaruq intersected 19.6 g/t gold over 5.6 m at 656 m depth, expanding the V zone westward at depth. A recent confirmation hole in the Whale Tail North deposit returned 19.5 g/t gold over 7.0 m at 477 m depth, which Agnico Eagle said could expand the mineral resources outline. High-grade intercepts, such as 14.2 g/t gold over 5.1 m at 698 m depth, expands the deep potential of the Whale Tail deposit to the west.
Meanwhile, Agnico Eagle reported quarterly net income of $17.1-million, or $0.07 a share, for the third quarter.
Adjusted net income is $1.2-million, or $0.01 a share, exceeding analyst estimates of an adjusted loss of $0.04 a share.