Agnico Eagle Mines beats profit estimates on higher gold prices

Canadian gold miner Agnico Eagle Mines Ltd reported a better-than-expected adjusted profit for a fourth straight quarter on Wednesday, largely due to higher realized gold prices.

Average realized gold prices rose to $1,318 per ounce from $1,293 a year earlier, the company said, while gold production improved 1.8% to 412,315 ounces.

Quebec’s largest gold producer reported all-in sustaining costs per ounce of $953 in the second quarter ended June 30, compared with $921 a year earlier.

Agnico Eagle’s Meliadine mine in northern Canada – its largest gold deposit mine in terms of resources – started commercial production in May. The company operates eight mines in Canada, Finland and Mexico.

Net income rose to $27.8 million, or 12 cents per share, in the second quarter ended June 30, from $5 million, or 2 cents per share, a year earlier.

Excluding items, it earned 10 cents per share, compared with estimate of 4 cents, according to Refinitiv IBES.

Revenue fell about 5% to $526.6 million, but beat analysts’ estimate of $505.21 million.

(By Arunima Kumar; Editing by Sriraj Kalluvila)

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