24 July 2019
Agnico Eagle Mines Limited today reported quarterly net income of $27.8 million, or $0.12 per share, for the second quarter of 2019. This result includes non-cash foreign currency translation gains on deferred tax liabilities of $5.9 million ($0.03 per share), derivative gains on financial instruments, mark-to-market and other adjustments of $3.3 million ($0.01 per share) and non-cash foreign currency translation losses of $4.1 million ($0.02 per share). Excluding these items would result in adjusted net income1 of $22.7 million or $0.10 per share for the second quarter of 2019. In the second quarter of 2018, the Company reported net income of $5.0 million or $0.02 per share.
Included in the second quarter of 2019 net income, and not adjusted above, is non-cash stock option expense of $3.3 million ($0.01 per share).
In the first six months of 2019, the Company reported net income of $64.8 million, or $0.28 per share. This compares with the first six months of 2018, when net income was $49.9 million, or $0.21 per share.
The increase in net income during the second quarter of 2019 compared to the prior year period was mainly due to lower amortization, lower income and mining taxes and higher realized gold prices, partially offset by lower gold sales volume (which does not include pre-commercial production ounces at Meliadine and Amaruq).
The increase in net income in the first six months of 2019 compared to the prior year period was mainly due to lower amortization and income and mining taxes, partially offset by lower gold sales volume (which does not include pre-commercial production ounces at Meliadine and Amaruq) and slightly lower realized gold prices.
In the second quarter of 2019, cash provided by operating activities was $126.3 million ($157.3 million before changes in non-cash components of working capital), as compared with the second quarter of 2018 when cash provided by operating activities was $120.1 million ($159.5 million before changes in non-cash components of working capital).
In the first six months of 2019, cash provided by operating activities was $275.0 million ($328.1 million before changes in non-cash components of working capital), as compared with the first six months of 2018 when cash provided by operating activities was $327.8 million ($340.1 million before changes in non-cash components of working capital).