Create FREE account or log in

to receive MINING.COM digests

LaRonde, Meliadine lead Agnico Eagle to record quarterly gold output

The Kittila gold mine in Finland is expanding, and the new shaft is to be commissioned next year. Credit: Agnico Eagle

Agnico Eagle Mines (TSX: AEM; NYSE: AEM) has reported third-quarter net income of $114.5 million and a dividend of $0.47 per share. This represented a drop of about half from the third quarter of 2020 when net income was $222.7 million.

The company said the quarterly decrease was due primarily to lower operating margins, unrealized losses for non-cash items, and higher amortization of property.

For the first nine months of 2021, Agnico reported net income of $440.2 million, or $1.81 per share, compared to $306.4 million in 2020.

Gold production during the third quarter 2021 reached record levels at 541,663 oz. at all-in sustaining costs per ounce of $1,011. This includes 17,947 oz. from the recently acquired Hope Bay mine in Nunavut.

Quarterly production from the mines in the Abitibi region – LaRonde, Goldex and 50% of Canadian Malartic – totaled 222,373 oz. of gold. In Nunavut, the Mediadine mine has a record quarter producing 97,024 oz, including pre-commercial production of 6,881 oz. from the new Tiriganiaq open pit.

The 1.53 million oz. of gold produced in the first nine months of this year was also a record.

Agnico confirmed that guidance for 2021 remains unchanged at approximately 2.05 million oz. with all-in sustaining costs of $950 to $1,000 per ounce. Capital expenditures for the year are also unchanged at $803 million.

For Agnico’s global mines, the measured and indicated resources (as of December 31, 2020) were 341.4 million tonnes grading 1.4 g/t gold for 15.3 million contained oz., and the inferred resource was 283 million tonnes grading 2.57 g/t gold for 23.4 million contained oz. Proven and probable reserves total 15.2 million tonnes grading 0.76 g/t gold for 115.5 million contained oz.

(This article first appeared in the Canadian Mining Journal)