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Agnico Eagle hits record quarterly output and record FY earnings

12th February 2021

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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NYSE- and TSX-listed gold miner Agnico Eagle has reported record quarterly production, record annual earnings and cash flow and outlined plans to bolster production by 24% from 2020 to 2024.

The Canada-based mining company on Thursday reported record net income of $511.6-million, or $2.12 a share, for 2020, driven by high gold prices. This compares with income of $473.2-million, or $2 a share, in 2019.

Fourth-quarter income was $205.2-million, or $0.85 a share, and adjusted fourth-quarter income was $162.1-million, or $0.67 a share, for the quarter.

"Despite 2020 being very challenging, we ended the year with record quarterly gold production, our largest gold reserve base and our best-ever safety performance as a result of the excellent work of our employees,” said CEO Sean Boyd.

Fourth-quarter production jumped to 501 445 oz, including 15 504 oz of precommercial gold production from the IVR openpit at the Meadowbank Complex and the Tiriganiaq openpit at Meliadine. All-in sustaining costs (AISC) for the quarter were $985/oz.

Payable gold production in the full year 2020 was 1.7-million ounces at an AISC of $1 051/oz. This falls within the group’s guidance of 1.68-million to 1.73-million ounces at an AISC of between $1 025/oz and $1 075/oz.

"With gold production expected to increase by approximately 300 000 oz in 2021, combined with an anticipated decline in total cash costs per ounce of 6%, we expect to continue to generate strong net free cash flow in 2021 while we steadily advance our pipeline of growth projects," said Boyd.

The mid-point of Agnico’s gold production guidance for 2021 and 2022 remains at 2.05-million and 2.1-million ounces, respectively.

Edited by Creamer Media Reporter

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