Agnico Eagle Posts US$1.64B In Revenue For Q3 2023

Agnico Eagle Mines Limited (TSX: AEM) released on Wednesday its Q3 2023 financial results, which saw the company post US$1.64 billion in revenue. This is an increase from Q3 2022’s revenue of US$1.45 billion.

The company produced 850,429 gold ounces for the quarter with all-in sustaining costs of US$1,210 per ounce, up from 816,795 ounces last year. The firm also sold 843,097 gold ounces this quarter compared to 830,246 ounces last year.

“Agnico Eagle had another solid quarter with production and costs coming in as expected,” said CEO Ammar Al-Joundi. “We are expecting a strong finish to the year and based on our year-to-date performance, we are well positioned to achieve our cost guidance and expect gold production to come in above the mid-point of our annual production guidance.”

Al-Joundi points to the robust performance of the Canadian Malartic and Meadowbank complexes in the quarter as the driver of the improvement in financials. These complexes served to counterbalance unexpected mill downtime at Detour Lake.

Further down the financials, the net income for the quarter came in at US$178.6 million, an increase from last year’s US$66.7 million. Adjusted EBITDA came down to US$763.3 million, also up from $674.5 million in the year ago period.

Adjusted net income per share ended at US$0.44 earnings per share. 

Agnico Eagle also generated an operating cash flow of US$502.1 million compared to last year’s US$575.4 million. The mining firm ended the quarter with a cash and cash equivalents balance of US$355.5 million, leading to a current assets balance of US$2.19 billion. Current liabilities ended at US$1.10 billion.

The gold miner said that considering the operating performance during the initial nine months of 2023, it is anticipating to surpass the midpoint of its production guidance for 2023. Expected payable gold production for 2023 remains steady at around 3.24 to 3.44 million ounces, while the expected total cash costs per ounce are estimated to fall within the range of $840 to $890, and AISC per ounce is projected to be in the range of $1,140 to $1,190. The estimated total capital expenditures for 2023, excluding capitalized exploration, remain at approximately $1.42 billion.

Agnico Eagle Mines last traded at $67.37 on the TSX.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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