Agnico posts strong third-quarter free cash flow
Agnico Eagle generated strong free cash flow for the third quarter ended September 30, driven by a solid operational performance, led by strong performances at the Detour Lake, Fosterville and Kittilla mines, and a high gold price of $4 264/oz.
Its payable gold production for the quarter was 814 012 oz at a production cost of $1 193/oz, total cash cost of $1 133/oz and an all-in sustaining cost of $1 648/oz.
Agnico posted quarterly net income of $1.35-billion, or $2.67 a share, and adjusted net income of $1.32-billion, or $2.62 a share.
It generated free cash flow of $852-million, or $1.68 a share.
The company remains on track to meet the lower end of its full-year production guidance of 3.3-million to 3.5-million ounces of gold. It also expects to meet the upper end of its total cash cost and AISC guidance of $1 020/oz to $1 120/oz and $1 400/oz to $1 550/oz, respectively.
Expected total capital expenditure for the full-year remains at between $2.6-billion and $2.8-billion and expected capitalised exploration remains at between $290-million and $330-million.
“Our business continues to perform well, reflecting the consistent execution of our teams across the company. Solid operational performance contributed to strong free cash flow generation and we remain on track to achieve our full-year guidance, with production expected near the lower end of the range and costs within the range despite inflationary cost pressures.
“We are making excellent progress across our project pipeline, with the focus on continuing our long record of increasing gold production per share for our owners. Construction is ramping up at Hope Bay, the first phase of shaft sinking is complete at Odyssey and project infrastructure continues to advance at Upper Beaver and Detour Lake,” comments Agnico president and CEO Ammar Al-Joundi.