Agnico-Eagle reports record free cash flow in Q3
Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) reported its third quarter financial results saying it posted record free cash flow for the fourth quarter in succession.
The company said its balance sheet has been strengthened by further debt reduction.
Agnico-Eagle is the world’s third largest gold producer, producing precious metals from operations in Canada, Australia, Finland and Mexico.
Based on the operational performance in the first nine months of 2024, the company is tracking well to meet the mid-point gold production forecast for the full year of 2024. That would amount to 3.45 million ounces. In addition, total cash costs per ounce, all-in-sustaining-costs per ounce, and capital expenditures guidance for 2024 remain unchanged.
Third quarter 2024 highlights include payable gold production of 863,445 ounces at a production cost per ounce of US$908, total cash cost of US$921 and all-in-sustaining cost per ounce of US$1,286.
Gold production and costs in the third quarter were in line with plan, driven by strong production in Nunavut and at Macassa (Kirkland Lake, Ontario), and Fosterville (Australia).
Other highlights included quarterly net income of US$567.1 million or $1.13 per share and adjusted net income of US$572.6 million or $1.14 per share.
The company generated record cash provided by operating activities of US$1,084.5 million or $2.16 per share (US$1,027.5 million or $2.05 per share before changes in non-cash working capital balances) and free cash flow of US$620.4 million or $1.24 per share (US$563.4 million or $1.12 per share before changes in non-cash working capital balances).
The shares eased 1.9% or $2.38 to $120.31 and trade in a 52-week range of $123.86 and $60.17.
Agnico’s third quarter statements featured an update on key projects in its pipeline, including the underground mine at its Detour Lake gold mine in northeastern Ontario.
In the third quarter, the company advanced site preparation for the underground project, including the completion of the pad that will host the surface infrastructure for the underground project and removal of overburden for the portal. Infill drilling into the high-grade corridor in the West Pit zone continued to confirm higher grades and a mineralized structure amenable to underground mining.
At the Odyssey mine, which forms part of the company’s 100%-owned Canadian Malartic complex in northwestern Quebec, ramp development and shaft sinking activities progressed on schedule, reaching a depth of 873 metres and 839 metres respectively. The excavation of the temporary shaft loading station on level 64 was completed.
In the upper extension of East Gouldie, conversion drilling near the Odyssey shaft has returned intersections including 3.3 g/t gold over 20.8 metres at a depth of 814 metres. Results from the ongoing exploration program continue to show the potential to add significant mineral resources along the extensions of the main East Gouldie deposit.