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Agnico Eagle profit soars amid higher sales, increasing metal prices

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TORONTO — Agnico Eagle Mines Ltd. says its profit rose in its latest quarter as it benefited from an increase in sales volumes and higher realized metal prices. 

The Canadian gold mining company reported a second-quarter net income of US$189.6 million, or 78 cents US per basic share, compared with a net income of US$105.3 million, or 44 cents cents US per basic share, in the same period of 2020. 

The company says revenue from mining operations was US$966.3 million for the three months ended June 30, compared with US$557.2 million the year before. 

Agnico Eagle says its higher net income in the quarter is primarily due to higher mine operating margins compared to 2020, when gold production and sales were negatively affected by pandemic-related reductions in mining activities.

The company says on its website it operates mines in Canada, Finland and Mexico, with exploration activities in each of these countries as well as in the United States and Colombia.

Sean Boyd, Agnico Eagle's chief executive officer, says the company remains on track to hit its production and cost guidance for 2021 and expects to see growing gold output in the second half of the year.

"Our sound operational platform and stable financial position has given us the flexibility to increase our exploration spending in 2021, and advance our pipeline of development projects, which is expected to provide additional shareholder value in the coming months and years," he said in a statement. 

National Bank analyst Mike Parkin says in a client note that Agnico Eagle's financial and operating results proved better than expected.

He says the bank expects the mining company's shares to outperform peers in trading. The company's stock was trading at $81.16 on the Toronto Stock Exchange on Thursday, up nearly five per cent or $3.79. 

This report by The Canadian Press was first published July 29, 2021.

Companies in this story: (TSX:AEM)

The Canadian Press