TORONTO (miningweekly.com) – The NYSE-listed stock of Canadian gold miner Agnico Eagle was buoyant on Thursday after the company reported that its fourth-quarter adjusted earnings beat analyst expectations, mainly as a result of record output in the period.
Excluding one-off items, Toronto-based Agnico reported net income of $16.6-million, or $0.08 a share, for the three months ended December, beating Wall Street analyst expectations of $0.01 a share.
However, on a net-income basis, the company reported a net loss of $21.3-million, or $0.10 a share, compared with its net loss of $780.3-million, or $4.49 a share, a year earlier.
Revenues rose 15% to $503-million, up from $437.24-million a year earlier.
Agnico, which currently had mines in Canada, Mexico and Finland, explained that it produced 387 538 oz of gold in the fourth quarter, up from 322 443 oz in the comparable quarter in 2013. For the full year, payable gold production was 1.4-million ounces.
Total cash costs an ounce on a by-product basis for the fourth quarter were $662/oz compared with $591/oz for the fourth quarter of 2013, as the Meadowbank mine produced less gold than the record quarterly output realised in the fourth quarter of 2013. This was the result of including Canadian Malartic production at slightly higher costs, lower mill recoveries at Kittila and lower by-product metals production and revenue.
Agnico maintained its 2015 guidance at 1.6-million ounces of gold with total cash costs on a by-product basis of $610/oz to $630/oz and all-in sustaining costs expected to range between $880/oz and $900/oz.
The company also reported a year-over-year increase in reserves and resources, boosted in part by the acquisition of Osisko Mining. At the end of 2014, Agnico held reserves of 20-million ounces compared with 16.9-million ounces at year-end 2013.
Measured and indicated resources and inferred resources also increased by about 56% and 33%, respectively, over the 2013 period.
Agnico shares jumped 7.5% on Thursday morning, reaching an intraday high of $33.09 apiece in early morning trading.