Agnico Eagle reports first quarter 2018 results

26 April 2018

Agnico Eagle Mines Limited today reported quarterly net income of $44.9 million, or $0.19 per share, for the first quarter of 2018. This result includes non-cash foreign currency translation gains on deferred tax liabilities of $6.7 million ($0.03 per share), mark-to-market adjustments and derivative gains on financial instruments of $0.5 million (nil per share) and non-cash foreign currency translation gains of $3.5 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $34.2 million or $0.15 per share for the first quarter of 2018. In the first quarter of 2017, the Company reported net income of $76.0 million or $0.33 per share.
Included in the first quarter of 2018 net income and not adjusted above is non-cash stock option expense of $7.8 million ($0.03 per share).
In the first quarter of 2018, cash provided by operating activities decreased by 7% to $207.7 million ($180.5 million before changes in non-cash components of working capital), compared with cash provided by operating activities of $222.6 million in the first quarter of 2017 ($224.7 million before changes in non-cash components of working capital). The decrease in cash provided by operating activities before changes in non-cash components of working capital during the current period was mainly due to lower gold sales volumes and higher costs, partially offset by higher realized gold prices. The higher costs were primarily a result of the strengthening of local currencies against the U.S. dollar and higher costs at several operations, principally at Meadowbank.
Highlights included:

  • Solid operational performance  – payable gold production in the first quarter of 2018 was 389,278 ounces at production costs per ounce of $759, total cash costs3 per ounce of $648 and all-in sustaining costs per ounce of $889
  • Production and cost guidance reiterated for 2018 – full year production guidance is unchanged at 1.53 million ounces of gold at total cash costs per ounce of $625 to $675 and AISC of $890 to $940 per ounce
  • Nunavut development projects progressing on schedule and on budget – amaruq permitting is on track for approval in the second quarter of 2018 and the underground exploration ramp is proceeding as planned. Meliadine construction and development is progressing well and procurement activities for the 2018 barge season are now complete

In the full release, Agnico Eagle also proived detailed information on:

  • First quarter financial and production highlights
  • Meadowbank – production affected by adverse eeather conditions and ore hardness
  • Amaruq satellite deposit – permitting and development activities on budget and schedule for start-up in the third quarter of 2019
  • Meliadine Project - Mine development and construction schedule progressing on plan and on budget
     

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