Agnico Eagle Mines Limited (TSX: AEM) released on Wednesday its Q4 and full-year 2021 financial results, which saw the company post US$949.1 million in revenue. This is a decrease from Q3 2021’s revenue of US$974.1 million but an increase from Q4 2020’s revenue of US$928.4 million.
The company produced 501,932 gold ounces for the quarter with all-in sustaining costs of US$1,126 per ounce, down from 523,706 ounces last quarter but marginally up from last year’s 501,445 ounces. The firm also sold 512,165 gold ounces this quarter compared to 533,437 ounces last quarter and 488,346 ounces last year.
“The fourth quarter of 2021 was Agnico Eagle’s fifth consecutive quarter of over 500,000 ounces of gold production, which is particularly impressive given the impacts of COVID-19 during the latter part of the quarter,” said newly appointed CEO Ammar Al-Joundi.
Al-Joundi replaces former CEO Anthony Makuch who stepped down shortly after assuming the chief executive role of the resulting merger between Agnico Eagle and Kirkland Lake Gold. When the transaction was completed earlier this month, it was announced that Agnico Eagle CEO Sean Boyd will serve as the executive chair while Makuch, as Kirkland’s CEO, will continue on as CEO of the combined firm.
“I am leaving Agnico with a strong and dedicated leadership team and I believe they will continue to be successful,” said Makuch.
Further down the financials, the net income for the quarter came in at US$101.1 million, a decrease from last quarter’s US$114.5 million and last year’s US$205.2 million. This quarter’s net income translates to US$0.41 earnings per share.
Agnico Eagle also generated an operating cash flow of US$261.7 million compared to last quarter’s US$291.0 million and last year’s US$403.5 million.
The mining firm ended the quarter with a cash and cash equivalents balance of US$185.8 million, leading to a current assets balance of US$1.30 billion. Current liabilities ended at US$761.8 million.
For the annual production, the company exceeded its 2021 production guidance of 2,047,500 ounces with annual gold production of 2,086,405 ounces. This is also an increase from last year’s production of 1,736,568 ounces.
With the merger in effect, the company now expects 2022 production to be 3.2 – 3.4 million gold ounces with AISC per ounce of US$1,000 – US$1,050. The production guidance range is forecasted to also apply in 2023 and 2024.
Full details of the results can be accessed here.
Agnico Eagle Mines last traded at $69.83 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.
