Agnico Eagle Sets Exploration Budget With Record Free Cashflow

Money Bizwiz Team
3 Min Read

Agnico Eagle Mines (TSX:AEM, NYSE:AEM) has recently reported its Q2 financial and operating results, showcasing record-breaking numbers driven by the strong performance of gold prices during the period.

The company achieved a net income of US$472 million, or US$0.95 per share, a significant 46 percent increase from the previous year. Its adjusted net income reached a new record of US$535.3 million, or US$1.07 per share. Additionally, Agnico Eagle saw substantial growth in free cash flow, marking the third consecutive quarter of record performance.

Ammar Al-Joundi, President, and CEO of Agnico Eagle, expressed satisfaction with the results, stating, “We continue to deliver strong and reliable operational results, which, combined with higher gold prices, drove record operating margin and free cash flow for the third consecutive quarter.”

The company’s cash provided by operations increased by 33 percent compared to the same period last year, totaling US$961.3 million, or US$1.92 per share. Payable gold production for the quarter stood at 895,838 ounces, with production costs per ounce at US$862, total cash costs per ounce at US$870, and all-in sustaining costs per ounce at US$1,169.

Key highlights included strong production at Agnico’s Canadian Malartic, LaRonde, and Fosterville mines. The company also maintained its full-year guidance for payable gold production and announced a US$50 million increase in its exploration budget due to positive exploration results at various sites.

One notable project is the Upper Beaver gold-copper project in Ontario, Canada, where Agnico Eagle is investing US$200 million over the next three years to evaluate and mitigate project risks. The company’s internal review of Upper Beaver revealed significant potential for gold and copper production, with operations expected to commence by 2030.

With a focus on financial performance and cost discipline, Agnico Eagle’s CFO, Jamie Porter, highlighted the company’s record-breaking financial results, emphasizing the strengthening of the balance sheet and increased returns to shareholders through share buybacks.

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Securities Disclosure: The author, Giann Liguid, holds no direct investment interest in any company mentioned in this article.

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