Agnico Eagle Mines Limited (TSE:AEM) (NYSE:AEM) posted lower profits in first quarter 2019 despite higher total production figures as the global gold miner felt the effects of a sagging gold price.
The Toronto-based company’s net income during the first quarter was US$37 million or $0.16 per share, down from US$44 million or $0.19 during the same period a year ago.
The miner did beat average analysts' estimates of $0.09 per share.
Total production figures were around 398,000 ounces at an all-in sustaining cost of US$836 per ounce, up from approximately 389,000 ounces at US$889 per ounce.
Agnico Eagle runs a global portfolio of nine producing mines in Canada, Mexico and Finland. Its production levels put the company among the top five largest gold producing companies in the world.
"Operationally, 2019 is off to a very good start with strong production and cost performance in the first quarter from Goldex, Kittila, Pinos Altos and Creston Mascota,” said Sean Boyd, Agnico’s CEO. “We have also seen significant exploration results from several of our key pipeline projects in the first quarter.”
With commercial production expected shortly at Meliadine, and Amaruq on schedule for start-up in the third quarter of 2019, Agnico expects higher gold production to result in increased earnings and cash flow in the second half of the year, Boyd said in a statement.
Agnico declared a quarterly dividend of about US$0.13 per share.
Shares of Agnico were trading at C$54.80 in Toronto and US$40.62 in New York at Thursday’s close.
Photo courtesy of Agnico Eagle
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