The LaRonde Complex, in Quebec.
Agnico Eagle posted solid second-quarter results and remains on track to achieve its production and cost guidance this year, the Canadian gold miner reported on Wednesday.
The Toronto-listed miner, which operates in Canada, Mexico and Finland, increased its second-quarter gold production from 331 064 oz in 2020, to 500 698 oz in 2021, excluding production from the newly acquired Hope Bay mine, in Nunavut.
First-half production rose to a record one-million ounces, compared with 742 430 oz in the prior-year period.
Production in the second-quarter and first half of 2020 was negatively affected by Covid-19-related reduction at seven of the group’s eight operations, thus affecting year-on-year comparisons.
Agnico Eagle stated that its key mines had as strong performance in the second quarter of this year, highlighting that it reported higher-than-forecast tonnage and grade at the LaRonde Complex, in Quebec, and higher-than-expected grade at the Meliadine mine, in Nunavut.
All-in sustaining costs (AISC) were $1 021/oz in the second quarter and $1 008/oz in the first half.
CEO Sean Boyd reported that Agnico remained on track to achieve its production and cost guidance of 2.05-million ounces at an AISC of between $950/oz and $1 000/oz this year.
This guidance excludes Hope Bay, which is forecast to produce about 18 000 oz to 20 000 oz at an AISC of $1 525/oz to $1 575/oz this year.
“We expect to see growing gold output in the second half of the year, which should lead to continued strong cash flow generation in 2021,” said Boyd.
The company also expects to report a cost saving of about $4-million a quarter, starting in the fourth quarter, as it reintegrates its Nunavut workforce at its Meliadine and Meadowbank mines.
In March last year, the Nunavummiut-based workforce was sent home and the mines were isolated from local communities to minimise the risk of Covid-19 spreading to local communities. The mines continued to pay 75% of the isolating workers’ salaries during this time
Agnico Eagle reported quarterly net income of $189.6-million, or net income of $0.78 a share, and adjusted net income of $167.7-million, or $0.69 a share, for the second quarter of 2021. This compares with net income of $105.3-million, or net income of $0.44 a share, in the June 2020 quarter.
In the first six months of 2021, the company reported net income of $325.7-million, or $1.34 a share, compared with $83.7-million, or $0.35 a share, a year earlier.