25 April 2019
Agnico Eagle Mines Limited today reported quarterly net income of $37.0 million or $0.16 per share, for the first quarter of 2019. This result includes derivative gains on financial instruments, mark-to-market and other adjustments of $4.0 million ($0.02 per share), non-cash foreign currency translation gains on deferred tax liabilities and non-recurring tax gains of $3.2 million ($0.01 per share) and non-cash foreign currency translation losses of $2.2 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $32.0 million or $0.14 per share for the first quarter of 2019. In the first quarter of 2018, the Company reported net income of $44.9 million or $0.19 per share.
Included in the first quarter of 2019 net income, and not adjusted above, is non-cash stock option expense of $6.2 million ($0.03 per share).
In the first quarter of 2019, cash provided by operating activities was $148.7 million ($170.8 million before changes in non-cash components of working capital), as compared with the first quarter of 2018 when cash provided by operating activities was $207.7 million ($180.5 million before changes in non-cash components of working capital).
The decrease in net income and cash provided by operating activities during the first quarter of 2019 compared to the prior year period was mainly due to lower gold sales volumes, lower realized gold prices and lower by-product revenue, partially offset by lower costs at several operations, principally at Goldex, Kittila, Pinos Altos and Creston Mascota. Lower gold sales were as a result of the expected lower gold production in the period primarily due to reduced throughput levels at Meadowbank as the mine transitions to the Amaruq satellite deposit in the second half of 2019.
"Operationally, 2019 is off to a very good start with strong production and cost performance in the first quarter from Goldex, Kittila, Pinos Altos and Creston Mascota. We have also seen significant exploration results from several of our key pipeline projects in the first quarter", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "With commercial production expected shortly at Meliadine, and Amaruq on schedule for start-up in the third quarter of 2019, we anticipate higher gold production to result in increased earnings and cash flow in the second half of the year. This should allow the Company to continue to advance its development pipeline, increase financial flexibility and potentially raise dividends", added Mr. Boyd.
(All amounts expressed in U.S. dollars unless otherwise noted)