Net income down? Agnico-Eagle isn’t worried

Despite a drop in net income, from $68.9 million last Q2 to this year’s $43.4, the miner saw an increase in revenue, gold production and, as a result, a pleasant 8.5% rise in stock price.

Agnico-Eagle mines reported their net income for the first six months of 2012 was $121.8 million ($0.71 per share), an increase from 2011’s net income of $114.1 million ($0.68 per share).

The company, which has recently had problems with its Quebec-based Goldex mine being shut down due to flooding and ground instability, had an optimistic outlook about the results with Sean Boyd, CEO of Agnico-Eagle, saying:

“Operating performance during the second quarter has resulted in continued strength in our cash flows and earnings and a strengthening of our financial position.  In addition to steady production from all of our mines, including record output at Meadowbank and Pinos Altos, we are pleased to announce a higher estimate for our full year production forecast.”

Agnico-Eagle has seen an increase in gold production from 239,328 in 2011 to 265,350 in 2012 and has decided to develop “satellite projects around Goldex, with production expected in 2014.”

Highlights of the company’s Wednesday release include:

  • Record Quarterly Production at Meadowbank – record quarterly gold production of 98,403 ounces
  • Record Quarterly Production at Low Costs at Pinos Altos – record quarterly production of 63,356 ounces of gold at total cash costs per ounce of $3581.
  • Strong Cash Generation – quarterly cash provided by operating activities of $194.1 million, or $1.14 per share
  • M and E Satellite Zones at Goldex Approved For Development – first production expected in early 2014
  • Meliadine Growing – recent drilling suggests further resource and reserve growth

 

Read Agnico-Eagle’s full report here >>

 

(Image, Sean Boyd, Agnico-Eagle CEO, Vimeo)

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