Agnico Eagle Mines (TSX:AEM,NYSE:AEM) introduced its Q2 monetary and working outcomes on Wednesday (July 31), reporting file numbers on the again of gold’s sturdy value transfer throughout the interval.
The corporate achieved web revenue of US$472 million, or US$0.95 per share, up 46 % from the earlier yr. Its adjusted web revenue got here to US$535.3 million, or US$1.07 per share — a brand new file.
Free cashflow additionally noticed important progress, marking the third consecutive quarter of file efficiency.
“We proceed to ship sturdy and dependable operational outcomes which, mixed with larger gold costs, drove file working margin and free money circulate for the third consecutive quarter,” stated Ammar Al-Joundi, Agnico Eagle’s president and CEO, in a press launch. “We generated over half of a billion {dollars} of free money circulate within the second quarter.”
Money offered by operations elevated by 33 % in comparison with the identical interval final yr, coming in at US$961.3 million, or US$1.92 per share. Payable gold manufacturing for the quarter was 895,838 ounces; manufacturing prices per ounce got here in at US$862, whereas whole money prices per ounce had been US$870 and all-in sustaining prices per ounce had been US$1,169.
The corporate highlighted sturdy manufacturing at its Canadian Malartic, LaRonde and Fosterville mines.
Agnico is sustaining its full-year steering for payable gold manufacturing at roughly 3.35 million to three.55 million ounces, and introduced a US$50 million enhance in its exploration finances resulting from constructive exploration outcomes at Canadian Malartic, Detour Lake and Hope Bay. Hope Bay will obtain the majority of the funds allotted.
“Within the East Gouldie deposit at Odyssey mine, latest exploration drilling continues to reveal the potential to develop the deposit laterally with good outcomes each on the jap and western extension outdoors of the present footprint of the mineral reserve define,” stated Man Gosselin, senior vp of exploration at Agnico.
Jamie Porter, Agnico’s CFO, highlighted the corporate’s sturdy monetary efficiency and deal with price self-discipline.
“We generated file monetary outcomes for a 3rd consecutive quarter, with adjusted EBITDA of roughly $1.2 billion and free money circulate of over $0.5 billion within the second quarter,” Porter stated. “In the course of the quarter, we considerably strengthened our stability sheet, elevated our liquidity to $2.9 billion, and lowered our web debt to beneath $1 billion, all supported by record-free money circulate. We additionally elevated returns to shareholders by means of $50 million of share buybacks.”
Work progressing at Higher Beaver gold-copper undertaking
Agnico additionally introduced promising strides at its Higher Beaver undertaking in Ontario, Canada.
The corporate is committing US$200 million over the subsequent three years to additional consider and scale back dangers related to the undertaking, with plans for each an exploration decline and shaft.
“We see the potential for Higher Beaver to be a low-cost, long-life undertaking, with a stable risk-adjusted return and upside potential that helps shifting us to the subsequent section,” stated Dominique Girard, senior vp of operations.
The corporate accomplished an inside evaluation of Higher Beaver in June, saying it has the potential to yield an annual common of round 210,000 ounces of gold and three,600 metric tons of copper, with manufacturing probably starting as quickly as 2030.
In 2024, the corporate plans to spend round US$50 million on setting up floor amenities, web site preparation and shaft collar excavation. Preliminary web site work started earlier this yr, with roughly US$15 million spent in H1.
Higher Beaver is positioned in Northeastern Ontario, about 25 kilometers east of Kirkland Lake. The district has a wealthy historical past of over 110 years in mineral exploration and mining, producing greater than 42 million ounces of gold.
The mineralization at Higher Beaver extends alongside a 400 meter strike size and reaches depths of as much as 2,000 meters, remaining open at depth. The present plan anticipates open-pit manufacturing from 2030 to 2034 at a mean charge of two,000 metric tons per day, with 500 metric tons per day stockpiled for later processing.
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Securities Disclosure: I, Giann Liguid, maintain no direct funding curiosity in any firm talked about on this article.
