Canada-based gold miner Agnico Eagle has set a new quarterly production record, driven by a strong operational and safety performance, leading to better-than-expected earnings and cashflow.
The company produced a record 858 170 oz of gold at a total cash cost of $726/oz and an all-in sustaining cost of $1 026/oz.
The higher gold production, when compared with the prior-year period, was attributed to the inclusion of the production from the Kirkland Lake acquisition, which brought the Detour Lake mine and Macassa mines in Canada, as well as the Australian mine Fosterville, into Angico Eagle's fold.
The higher production from these former Kirkland Lake mines was partially offset by the cessation of gold production in 2022 at the Hope Bay mine, in Nunavut, following the company's decision to dedicate the infrastructure to exploration activities and lower production at the company's Pinos Altos mine, as a result of lower tonnage sourced from the underground mine.
For the second quarter of 2022, Agnico Eagle reported net income of $275.8-million, or $0.61 a share, with adjusted net income of $347.2-million, or $0.76 a share.
Operating cash flow was $1.39 a share.