Agnico Eagle Mines Ltd (TSX:AEM) has reported first-quarter results that beat analysts’ estimates on the revenue and earnings lines, sending its shares close to 2% higher by noon on Friday.
The Canadian-based gold producer said the strong operational results came as it delivered its best quarterly safety performance in its over 65-year history, positioning it well to meet its full-year guidance projections.
“Costs were better than expected, primarily due to the strong operating results, favourable currency movements and a slight easing of inflationary pressures," President and CEO Ammar Al-Joundi said in an earnings statement.
"With the completion of the acquisition of Yamana's Canadian assets on March 31, our focus in 2023 continues to be on the optimization of our strategic positions in the Abitibi gold belt, with an aim of increasing annual gold production from this region by approximately 500,000 ounces by the end of the decade.”
For the three months to March 31, 2023, the company reported payable gold production of 812,813 ounces at production costs per ounce of $804, total cash costs per ounce of $832 and all-in sustaining costs (AISC) per ounce of $1,125. It noted that the results include only 50% of the production from the Canadian Malartic mine up to March 30, 2023, and 100% thereafter.
Revenues from mining operations increased by 14% to $1.51 billion, while net income amounted to $1.82 billion, or $3.87 per share, including a remeasurement gain of about $1.5 billion arising from the 50% of the Canadian Malartic complex not previously owned by the company
Adjusted net income of $0.58 per share came in ahead of the $0.50 penciled in by Zacks Consensus Estimates. It has declared a quarterly dividend of $0.40 per share.
“Efforts are ongoing to evaluate several opportunities to leverage existing infrastructure which has the potential to significantly increase future gold production at lower capital intensity and with a reduced environmental footprint. If realized, these opportunities have the potential to deliver increased returns to our shareholders with reduced execution and operating risk," Al-Joundi added.
The company’s shares were up 1.8% at C$78.33 shortly before noon on Friday.
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