Gold miner Agnico Eagle has posted record second-quarter production, reflecting 100% ownership of the Canadian Malartic mine for the full three months, combined with a strong operational performance at all producing sites. The miner, which bought the remaining 50% of Canadian Malartic previously owned by Yamana Gold, produced 873 294 oz at an all-in sustaining cost (AISC) of $1 150/oz.
This compares with quarterly production of 858 170 oz in the prior-year period, as the additional production from the acquisition of the remaining interest in Canadian Malartic was partially offset by lower production at Detour Lake, in Ontario, and LaRonde, in Quebec.
Gold production and costs in the second quarter were better than anticipated, reflecting strong operating performance across the company’s mines, despite the challenges related to wildfires in northern Ontario and Quebec, and the caribou migration in Nunavut. At Canadian Malartic, the team celebrated production of its seven-millionth ounce in June. In addition, Detour Lake, Goldex and Macassa each achieved record quarterly mill throughput rates, while Meliadine recorded its best-ever monthly mill throughput in May.
The better-than-anticipated performance is driving solid financial results, president and CEO Ammar Al-Joundi said on Wednesday. Agnico Eagle reported quarterly net income of $0.66 a share and adjusted net income of $0.65 a share in the quarter. “With this excellent start to the year, we are tracking very well to meet our annual production and cost guidance,” said Al-Joundi. The company is forecasting 3.24-million to 3.44-million ounces at an expected cash cost per ounce of $840 to $890 and an AISC of $1 140/oz to $1 190/oz for the year.
