Agnico Eagle 1st-qtr profit falls but beats expectations (updated)

Aem Holdings

25/04/2019 22:57

(Adds CEO quote, details throughout)
    By Nichola Saminather
    TORONTO, April 25 (Reuters) - Agnico Eagle Mines  AEM.TO ,
the biggest Canada-focused gold miner, reported an 18% decline
in first-quarter profit on Thursday on lower gold production as
its Meadowbank mine in Canada's Nunavut territory nears the end
of its life.
    Even so, the Toronto-based company's net income of $37
million, or 16 cents per share, in the three months ended March
31, beat analyst estimates of 7 cents a share. 
    Lower realized gold prices also contributed to the decline,
the company said. The fall in gold sales and prices was
partially offset by lower costs at its Goldex mine in Canada,
Kittila in Finland, and Pinos Altos and Creston Mascota in
Mexico, Agnico said in a regulatory filing.
    Agnico Eagle this year begins operating two new mines in
Nunavut, transitioning from Meadowbank to the Amaruk satellite
deposit, and opening the new Meliadine mine.  urn:newsml:reuters.com:*:nL3N2242MJ
    As a result, "we anticipate higher gold production to result
in increased earnings and cash flow in the second half of the
year," Chief Executive Sean Boyd said in the statement. "This
should allow the company to continue to advance its development
pipeline, increase financial flexibility and potentially raise
dividends." 
     Agnico reported total gold production of 398,217 ounces in
the first quarter, including pre-commercial production of 17,582
ounces at Meliadine, at an all-in sustaining cost of $836 per
ounce. That compared with production of 389,278 ounces a year
ago at a cost of $889 per ounce. 
    Cash from operating activities fell to $148.7 million from
$207.7 million a year earlier, the company said.

 (Reporting by Nichola Saminather
Editing by James Dalgleish and Leslie Adler)
 ((Nichola.Saminather@thomsonreuters.com; +1-416-687-7604;))