PROFIT & LOSS

Agnico boosts dividend by 75% after strong quarter

Buoyed by strong cash flow

Staff reporter

This article is 4 years old. Images might not display.

The company said operations had rebounded after COVID-19 interruptions in the previous quarter and several mines had set operational records, including Meliadine's record quarterly gold production.

Cash provided by operating activities was a record $462.5 million, compared with $349.2 million a year earlier, generating strong free cash flow and the company reported quarterly net income of $222.7 million, or 92c per share.

Overall output had returned to near-record levels seen in the fourth quarter of 2019, Agnico said, with payable gold production at 492,693 ounces at all-in sustaining costs of $1,016/oz.

It kept 2020 guidance unchanged at 1.68-1.73 million ounces and AISC at $1,025-$1,075/oz.

Despite much M&A talk and activity in the gold sector, president and CEO Sean Boyd did not hint at Agnico Eagle joining in.

"With similar production levels expected in the fourth quarter of 2020, we remain confident in our business and its ability to generate significant free cash flow on a go-forward basis," he said.

"Strong cash-flow generation, together with recent exploration success in several of our long-life mining camps, gives us confidence that we have a sustainable, long-term, self-funding business."

Agnico shares (TSX: AEM) closed down 4.7% to C$101.26, on what was a tough day for gold equities, capitalising it at $24.6 billion (US$18.5 billion).

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.