30 April 2020
Agnico Eagle Mines Limited today reported a quarterly net loss of $21.6 million, or net loss of $0.09 per share, for the first quarter of 2020. This result includes non-cash foreign currency translation losses on deferred tax liabilities of $44.2 million ($0.18 per share), mark-to-market derivative losses on financial instruments of $22.1 million ($0.09 per share), non-cash foreign currency translation losses of $3.8 million ($0.02 per share), costs relating to the temporary suspension of operations of $2.3 million ($0.01 per share) and various other adjustments of $5.2 million($0.02 per share). Excluding these items would result in adjusted net income1of $56.0 million or $0.23 per share for the first quarter of 2020. For the first quarter of 2019, the Company reported net income of $37.0 million or $0.16 per share.
Included in the first quarter of 2020 net loss, and not adjusted above, is a non-cash stock option expense of $6.6 million ($0.03 per share).
In the first quarter of 2020, cash provided by operating activities increased to $163.4 million ($204.8 million before changes in non-cash components of working capital), as compared with the first quarter of 2019 when cash provided by operating activities was $148.7 million ($170.8 million before changes in non-cash components of working capital).
The increase in cash provided by operating activities during the first quarter of 2020, compared to the prior year period, was mainly due to higher gold sales volumes and higher realized gold prices, partially offset by higher costs at the Meadowbank Complex and Meliadine mine which were still ramping up operations during the quarter. Higher gold sales volumes were largely a result of the increased production due to the commencement of commercial production at Meliadine during May 2019.
The decrease in net income during the first quarter of 2020, compared to the prior year period, was mainly due to non-recurring losses on deferred taxes due to non-cash foreign currency translation, primarily due to the weakening of local currencies during the first quarter of 2020, unrealized losses on derivatives and higher production costs and amortization at the Meadowbank Complex and Meliadine mine, partially offset by higher gold sales volumes and higher realized gold prices.