Agnico Eagle reports solid output on record Malartic production
Shares are up 22% since the beginning of the year
Agnico Eagle Mines reported solid operational and cost performance for the March 2024 quarter, with payable gold production of 878,652oz at all-in-sustaining costs of $1,190/oz.
Gold production was led by record quarterly production at the Canadian Malartic mine and strong production from the Macassa mine and Nunavut operations, the Canadian-based gold producer said.
Agnico's net income was $347.2 million, or $0.70/share, down significantly from $1,1816.9 million in the same quarter in 2023. The difference is primarily due to "the recognition of a $1,543.4 million remeasurement gain on the 50% of the Canadian Malartic complex that the company owned prior to the Yamana Transaction in the prior-year period, partially offset by higher revenues from higher gold sales and higher realized gold prices in the current period", Agnico said.
Adjusted EBITDA totalled $929.3 million, compared to $740.4 million last year. Agnico added that it increased its net position by $186 million and reduced net debt in the March quarter.
"Building on a very strong close to 2023, we are reporting our second consecutive quarter of record operating margins and record free cash flow on the back of solid operational and cost performance," chief executive Ammar Al-Joundi said. "With this strong start to the year, we are well positioned to achieve our production and cost guidance for 2024."
Agnico expects gold production of around 3.35-3.55Moz in 2024 at an all-in-sustaining cost of $1,250/oz. Total capital expenditures are forecasted at $1.6-1.7 billion.
"During the quarter, we continued to advance our key value drivers and project pipeline, and our exploration program yielded significant results at Hope Bay, Canadian Malartic and Detour Lake," Al-Joundi added. "We strengthened our balance sheet in the quarter, and our focus remains on capital discipline and cost control while investing in our projects pipeline and providing returns to shareholders."
Agnico Eagle shares are trading at C$85.78, up around 22% since the beginning of the year. It has a market cap of C$46.07 billion.
What's Your Reaction?
