Meadowbank, Nunavut.
Photo by: Agnico Eagle Mining
TORONTO (miningweekly.com) – Canadian gold miner Agnico Eagle Mines on Thursday reported rising first-quarter profit, boosted by higher gold output and lower production costs.
The Toronto-based firm reported net income of $108.9-million, or $0.63 a share, for the first quarter ended March 31, a significant improvement on the $23.9-million reported in the comparable quarter of 2013.
Excluding special items, the company’s adjusted profit topped $108.6-million, or $0.61 a share, beating the average Wall Street analyst estimate of earning $0.22 a share on revenue of $443.27-million.
Agnico, which operates mines in Canada and Mexico, reported a 55% year-on-year increase in gold output to 366 421 oz, up from 236 975 oz in the same period of 2013. Its production was boosted by record output and lower costs at the Meadowbank mine, in Nunavut.
Total cash costs in the quarter were $537/oz, down from $740/oz in the same quarter a year earlier.
CEO Sean Boyd said that given the strong first-quarter performance, the company expects to exceed the top end of its production guidance and do better than the lower end of its cash cost forecast for 2014.
It had previously estimated 2014 output in the range of 1.18-million to 1.2-million ounces at a cost of between $670/oz and $690/oz.
Agnico Eagle last month joined forces with Latin America-focused precious metals miner Yamana Gold to jointly buy all of Quebec-focused Osisko Mining's issued and outstanding common shares for C$3.9-billion, or C$8.15 a share, in a deal that would significantly add to the companies’ operating portfolios.
Agnico Eagle’s NYSE-listed stock on Thursday gained 4.77% in after-market trade, changing hands at $29.59 apiece.