THE MINING EXECUTIVE MAGAZINE JANUARY/FEBRUARY 2020 EDITION
The Mining Executive Magazine is a premium, daily dose of executive centred news and discussion platform spanning across major resources industry sectors. The Magazine monitors and distil executives’ pulse in order to create a 21st-century Industry 4.0 adaptive knowledge ecosystem for the sustainability of future generations within mining, oil and gas fields. With thousands of executives on our radar, we are truly a global executive leader hence are viewed as the authoritative voice of reason. We dig deep into what happens behind closed boardroom doors and unearth critical signals and directions affecting the sustainability of our beloved industry. Our content comes from Technical journalists, Mining Executives, Subject Matter Experts, Academics, Analysts and seasoned professionals and, is regulated by a dedicated team of Editors and Journalist having deep technical and practical field experience to ensure accuracy and factual reporting across Australia, Asia/Pacific/ Europe/ Africa/Middle East, North America and South America. Website: www.theminingexecutive.com Email: info@theminingexecutive.com
The Mining Executive Magazine is a premium, daily dose of executive centred news and discussion platform spanning across major resources industry sectors. The Magazine monitors and distil executives’ pulse in order to create a 21st-century Industry 4.0 adaptive knowledge ecosystem for the sustainability of future generations within mining, oil and gas fields. With thousands of executives on our radar, we are truly a global executive leader hence are viewed as the authoritative voice of reason. We dig deep into what happens behind closed boardroom doors and unearth critical signals and directions affecting the sustainability of our beloved industry. Our content comes from Technical journalists, Mining Executives, Subject Matter Experts, Academics, Analysts and seasoned professionals and, is regulated by a dedicated team of Editors and Journalist having deep technical and practical field experience to ensure accuracy and factual reporting across Australia, Asia/Pacific/ Europe/ Africa/Middle East, North America and South America.
Website: www.theminingexecutive.com
Email: info@theminingexecutive.com
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The
MINING EXECUTIVE
Magazine FEBRUARY 2020
Sean Boyd, Agnico Eagle Chairman and
Chief Executive Officer said, "The second
quarter of 2019 was another period of strong
operating performance with production and
costs tracking well with guidance. One of the
key highlights in the quarter was the
declaration of commercial production at our
Meliadine mine in Nunavut", He further
elaborated ,"With Meliadine ramping up to
full production over the balance of the year
and Amaruq on schedule to achieve
commercial production in the third quarter of
2019, the Company is well positioned for a
strong second half from both a financial and
operational perspective".
Payable gold production in the second quarter
of 2019 was 412,315 ounces at production
costs per ounce of $735, total cash costs per
ounce of $652 and all-in sustaining costs per
ounce of $953. The company set production
and cost guidance for 2019 at 1.75 million
ounces, total cash costs per ounce and AISC
per ounce in the range of $620 to $670 and
$875 and $925, respectively. The company
increased its capital budget for 2019 to $750
million from previous guidance of $660
million citing lower pre-commercial gold
sales credited against capital at Meliadine, the
advancement of the Amaruq underground
development program and accelerated
spending on the Meliadine saline water
treatment system.
With solid financial performance setting tone
in the first and second quarter, Agnico Eagle
has gone to seal its performance record with a
quarterly net income of $76.7 million for the
third quarter of 2019. This result includes
non-cash foreign currency translation losses
on deferred tax liabilities and non-recurring
tax adjustments of $8.3 million, derivative
losses on financial instruments, mark-tomarket
and other adjustments of $3.8 million
and non-cash foreign currency translation
gains of $1.3 million. Excluding these items
would result in adjusted net income of $87.5
million for the third quarter of 2019. In the
third quarter of 2018, the Company reported
net income of $17.1 million.
Included in the third quarter of 2019 net
income, and not adjusted above, is non-cash
stock option expense of $3.4 million. In the
first nine months of 2019, the Company has
reported net income of $141.5 million. This
compares with the first nine months of 2018,
when net income was $67.0 million. In the
third quarter of 2019, cash provided by
operating activities was a record $349.2
million ($275.3 million before changes in
non-cash components of working capital), as
compared to the third quarter of 2018 when
cash provided by operating activities was
$137.6 million ($155.0 million before changes
in non-cash components of working capital).
In the first nine months of 2019, cash
provided by operating activities was $624.2
million ($603.5 million before changes in
non-cash components of working capital), as
compared to the first nine months of 2018
when cash provided by operating activities
was $465.4 million ($495.1 million before
changes in non-cash components of working
capital).
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