11 February 2021
Agnico Eagle Mines Limited today reported quarterly net income of $205.2 million, or net income of $0.85 per share, for the fourth quarter of 2020. This result includes non-cash mark-to-market gains on warrants of $29.3 million ($0.12 per share), foreign currency translation gains on deferred tax liabilities of $28.8 million ($0.12 per share), derivative gains on financial instruments of $21.7 million ($0.09 per share), losses on environmental remediation of $16.6 million ($0.07 per share), non-cash foreign currency translation losses of $11.0 million ($0.04 per share) and various other adjustment losses of $9.1 million ($0.04 per share). Excluding these items would result in adjusted net income1 of $162.1 million or $0.67 per share for the fourth quarter of 2020. For the fourth quarter of 2019, the Company reported net income of $331.7 million or $1.39 per share.
Included in the fourth quarter of 2020 net income, and not adjusted above, are non-cash stock option expense of $3.0 million ($0.01 per share) and workforce costs of employees affected by the COVID-19 pandemic (primarily Nunavut-based) of $2.3 million ($0.01 per share).
In the full year 2020, the Company reported record net income of $511.6 million, or $2.12 per share. This compares with the full year 2019, when net income was $473.2 million, or $2.00 per share.
In the fourth quarter of 2020, cash provided by operating activities was $403.5 million ($386.8 million before changes in non-cash components of working capital), compared to the fourth quarter of 2019 when cash provided by operating activities was $257.5 million ($263.8 million before changes in non-cash components of working capital). The cash provided by operating activities in the fourth quarter of 2020 resulted in another strong quarter of free cash-flow generation.