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Agnico Eagle reports record gold production and net income in 2022

Published by Tavex Analysts in category Market News on 17.02.2023
Gold price (XAU-GBP)
1,925.87 GBP/oz
  
- GBP1.31
Silver price (XAG-GBP)
23.03 GBP/oz
  
- GBP0.06

Agnico Eagle, a top global gold miner, has announced that its annual gold production and operating cash flow have reached record levels due to strong operational performance across its integrated asset portfolio. The company reported payable gold production of 3,135,007 ounces at production costs per ounce of $843, total cash costs per ounce of $793, and AISC per ounce of $1,109 in 2022. Including the full year of production from the legacy Kirkland Lake Gold mines, which were acquired in February 2022, the company’s total payable gold production was 3,280,731 ounces at production costs per ounce of $821, total cash costs per ounce of $780, and AISC per ounce of $1,090, in line with its 2022 production guidance. The company also reported an increase in net income of $670.2 million ($1.53 per share) in 2022 compared to $561.9 million ($2.31 per share) in 2021, primarily due to higher mine operating margins from higher sales volumes following the merger with Kirkland Lake Gold.

Agnico Eagle increases gold mineral reserves by 9%

Agnico Eagle’s gold mineral reserves increased by 9% to a record level of 48.7 million ounces of gold due to significant additions at Detour Lake and successful conversion of mineral resources at several other operations. The company expects its annual payable gold production to grow from 3.28 million ounces in 2022 to an expected range of approximately 3.40 to 3.60 million ounces in 2025, while payable gold production for 2023 is forecast to be approximately 3.24 to 3.44 million ounces. However, total cash costs per ounce and AISC per ounce in 2023 are forecast to be higher than the previous guidance due to inflationary pressures on labour, electricity, fuel, and consumables.

Agnico Eagle declares quarterly cash dividend as it aims to optimize and grow operations

Agnico Eagle’s Board of Directors has declared a quarterly cash dividend of $0.40 per common share, payable on March 15, 2023, to shareholders of record as of March 1, 2023. The company has declared a cash dividend every year since 1983. CEO Ammar Al-Joundi stated that 2022 was a transformational year for Agnico Eagle and the pending acquisition of Yamana’s Canadian assets would consolidate the Abitibi Gold Belt, one of the best gold regions in the world, and position the company to continue to grow and create value for stakeholders. The company’s focus in 2023 will be on optimizing and growing Detour Lake and Canadian Malartic and establishing a plan to produce up to 500,000 ounces of gold per year by the end of the decade using its existing infrastructure in the Abitibi region of Quebec.

Gold price (XAU-GBP)
1,925.87 GBP/oz
  
- GBP1.31
Silver price (XAG-GBP)
23.03 GBP/oz
  
- GBP0.06

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