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Agnico Eagle Mines cuts 2020 production outlook

Published 2020-02-13, 05:34 p/m
© Reuters.  Agnico Eagle Mines cuts 2020 production outlook
AEM
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(Reuters) - Gold miner Agnico Eagle Mines Ltd (TO:AEM) (N:AEM) lowered its full-year 2020 production outlook, citing slower-than-expected ramp up of production at the new Nunavut operations in Canada.

Agnico said it now expects full-year production of 1.87 million ounces compared with its previous outlook of 1.9 million to 2.0 million ounces.

The production would also be impacted by a more conservative mining plan in the West mine area at LaRonde, the company said.

However, Agnico reported a fourth-quarter profit compared with a year-ago loss, as it benefited from higher gold sales volumes and realized gold prices.

Gold miners benefited from global geo-political uncertainties and the then ongoing tariff dispute between the United States and China, as investors sought safety in safe-haven assets. Average gold price rose 21% in the quarter compared to last year.

Payable gold production rose to 494,678 ounces compared with 410,712 ounces last year.

Agnico posted net income of $331.7 million, or $1.38 per share, in the fourth quarter ended Dec. 31, compared with a loss of $393.7 million, or $1.68 per share, a year earlier.

On an adjusted basis, the company reported a profit of 37 cents per share, in-line with analysts' estimates, according to Refinitiv IBES.

The operator of mines in Canada, Finland and Mexico said all-in sustaining costs per ounce (AISC) were $1,039 in the fourth quarter, compared with $852 a year earlier.

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