25 July 2018
Agnico Eagle Mines Limited today reported quarterly net income of $5.0 million , or $0.02 per share, for the second quarter of 2018. This result includes a realized gain on asset disposals of $25.0 million ( $0.11 per share) primarily related to the sale of the West Pequop Joint Venture, Summit and PQX properties in Nevada , non-cash foreign currency translation losses on deferred tax liabilities of $15.9 million ( $0.07 per share), non-cash foreign currency translation losses of $3.9 million ( $0.02 per share) and mark-to-market adjustments and derivative losses on financial instruments of $2.8 million ( $0.01 per share). Excluding these items would result in adjusted net income 1 of $2.6 million or $0.01 per share for the second quarter of 2018. In the second quarter of 2017, the Company reported net income of $54.9 million or $0.24 per share.
Included in the second quarter of 2018 net income, and not adjusted above, is non-cash stock option expense of $3.8 million ( $0.02 per share).
Income and mining taxes expense for the second quarter of 2018 was $35.4 million , or an effective tax rate of 88%. In the first six months of 2018, the income and mining taxes expense was $59.9 million , or an effective tax rate of 55%. These tax rates are higher than prior guidance partly due to the distribution of earnings by jurisdiction in the second quarter of 2018. The Company anticipates the overall effective tax rate to normalize over the remainder of 2018 to approximately 45% for the full year 2018.
In the first six months of 2018, the Company reported net income of $49.9 million , or $0.21 per share. This compares with the first six months of 2017, when net income was $130.8 million , or $0.57 per share.