TORONTO (miningweekly.com) – Agnico Eagle on Wednesday reported an adjusted profit of $3.9-million, or $0.02 a share, for the fourth quarter of 2015, beating analyst expectations of nil a share.
The Toronto-based miner reported a net loss of $21.3-million, or $0.10 a share, despite rising gold sales.
Gold sales increased 5% year-on-year to 417 149 oz of gold in the quarter, on the back of payable production rising 9% year-on-year at 422 328 oz of gold, compared with 387 535 oz in the fourth quarter of 2014. Revenues, however, declined 4% to $482.9-million, as the average realised price in the period fell 9% to $1 094/oz.
Total cash costs per ounce on a by-product basis for the fourth quarter were $547/oz compared with $662/oz for the fourth quarter of 2014. The decrease was mainly owing to higher production levels at the LaRonde, Canadian Malartic, Meadowbank, Kittila, Pinos Altos and Creston Mascota mines and favourable foreign exchange rates.
Agnico said that companywide mineral reserves declined by 5%, or 900 000 oz, to 19.1-million ounces, owing to mine depletion of about 1.8-million ounces. However, in a note to clients, Desjardins Capital Markets analyst Michael Parkin pointed out the one negative - that reserves associated with producing assets fell 6.8% year-on-year, with only two of the smaller mines replacing reserves.
Gold resources increased by 67% at the Amaruq project, in Nunavut, lifting inferred mineral resources to 3.3-million ounces (16.9-million tonnes grading 6.05 g/t gold).
The miner’s 2016 guidance of 1.53-million ounces, was 7.6% lower year-on-year.
Agnico said it expected average yearly production, from 2016 to 2018, to be about 1.53-million ounces of gold, with 2016 all-in sustaining costs of between $850/oz and $890/oz.
The company noted that various internal projects at current operating mines held the potential to add incremental production in 2018, while Amaruq, Meliadine and El Barqueño were expected to add significant production starting in 2019 to 2020.
Agnico's NYSE-listed stock on Thursday climbed as much as 9.83% to $51.04 apiece.