28 October 2020
Agnico Eagle Mines Limited today reported quarterly net income of $222.7 million, or net income of $0.92 per share, for the third quarter of 2020. This result includes non-cash mark-to-market gains on warrants of $20.9 million ($0.09 per share), foreign currency translation gains on deferred tax liabilities of $14.3 million ($0.06 per share), derivative gains on financial instruments of $5.1 million ($0.02 per share), non-cash foreign currency translation losses of $4.3 million ($0.02 per share) and various other adjustments losses of $2.5 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $189.2 million or $0.78 per share for the third quarter of 2020. For the third quarter of 2019, the Company reported net income of $76.7 million or $0.32 per share.
Included in the third quarter of 2020 net income, and not adjusted above, are a non-cash stock option expense of $3.1 million ($0.01 per share) and workforce costs of employees affected by the COVID-19 pandemic (primarily Nunavut-based) of $2.2 million ($0.01 per share).
In the first nine months of 2020, the Company reported net income of $306.4 million, or $1.27 per share. This compares with the first nine months of 2019, when net income was $141.5 million, or $0.60 per share.
In the third quarter of 2020, cash provided by operating activities was $462.5 million ($434.4 million before changes in non-cash components of working capital), compared to the third quarter of 2019 when cash provided by operating activities was $349.2 million ($275.3 million before changes in non-cash components of working capital). The cash provided by operating activities in the third quarter of 2020 sets a quarterly record for the Company and resulted in strong quarterly free cash-flow2 generation.
In the first nine months of 2020, cash provided by operating activities was $788.5 million ($824.3 million before changes in non-cash components of working capital), compared to the first nine months of 2019 when cash provided by operating activities was $624.2 million ($603.5 million before changes in non-cash components of working capital).