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
The increase in net income and in cash provided by operating
activities during the third quarter of 2019 compared to the prior year
period was mainly due to higher gold sales volumes and higher
realized gold prices, partially offset by the contribution of production
costs from Meliadine, which achieved commercial production in May
2019. Higher gold sales were primarily driven by the contribution of
a full quarter of commercial production from the Meliadine mine,
partially offset by expected lower throughput levels at Meadowbank
as the mine transitioned to the Amaruq satellite deposit.
Third quarter of 2019 highlights included:
·Record quarterly gold production – Payable gold production in the
third quarter of 2019 was 476,937 ounces (including pre-commercial
production ounces of 33,134 ounces at Amaruq) at production costs
per ounce of $713, total cash costs per ounce of $653 and all-in
sustaining costs per ounce of $903. Production costs, total cash costs
per ounce and AISC per ounce exclude the pre-commercial production
ounces at Amaruq
·A return to free cash flow generation in the third quarter of 2019
– In 2017, the Company embarked on the largest capital spending
program in its history in order to build two new mines in Nunavut.
That construction program came to an end in the third quarter of 2019
with the declaration of commercial production at Amaruq. This
contributed to a substantial increase in free cash flow generation
·Amaruq declared commercial production on September 30, 2019
– Total pre-commercial ounces of gold produced were 35,281
(including 2,147 ounces in the second quarter of 2019). Total capital
costs for the development of Amaruq were approximately $397
million, which is above the most recent forecast of $350 to $370
million primarily due to the timing of commercial production.
Operations continue to ramp up and production at the Meadowbank
Complex for 2019 (including pre-commercial production) is expected
to be approximately 200,000 ounces of gold
·Production guidance increased for 2019 – Total production for
2019 is now expected to be 1.77 to 1.78 million ounces of gold
(including pre-commercial production from Meliadine and Amaruq),
which is a slight increase from the previous guidance of 1.75 million
ounces of gold. The Company anticipates that total cash costs per
ounce and AISC per ounce for 2019 will continue to be in the range of
$620 to $670 and $875 and $925, respectively
·Dividend increased by 40% – A quarterly dividend of $0.175 per
share has been declared. The previous quarterly dividend was $0.125
per share.
"With record performance at several of our operations and the ongoing
ramp up of our two new mines in Nunavut, we achieved record
quarterly gold production in the third quarter of 2019. As expected,
this strong result, combined with the completion of the extensive
construction spending program in Nunavut, resulted in the generation
of substantial free cash flow in the quarter," indicated Mr Boyd.
It remain to be seen if the company managed to ensure a streak of
great performance for all the quarters of the 2019 year and the plans
the company has for 2020. One thing remains apparent, there is the
Agnico eagle way of delivering.
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