Canadian gold miner Agnico-Eagle has reported record quarterly gold production of 541 663 oz in the three months ended September 2021. This includes 17 957 oz of payable gold output at the recently acquired Hope Bay mine, in Nunavut.

Excluding production from Hope Bay, Agnico-Eagle produced 523 706 oz, which compares with 492 693 oz in the prior-year period.

“Another strong quarterly operating performance, including record gold production, continues to demonstrate our ability to optimise our assets and steadily grow output over the next several years,” commented CEO Sean Boyd.

He reported that the Abitibi and Meliadine mines continued to be key drivers of the company’s ongoing operational success.

In the third quarter, the LaRonde Complex, Goldex and Canadian Malartic mines (50%), in the Abitibi region of Quebec, collectively produced 222 373 oz of gold at production costs of $716/oz and total cash costs of $594/oz.

In Nunavut, the Meliadine mine had a record quarter producing 97 024 oz of gold (including precommercial gold production of 6 881 oz) at production costs per ounce of $585 and total cash costs per ounce of $634. In the third quarter of 2021, these four mines collectively represent about 59% and 68% of the company's gold production and operating margin, respectively. 

Agnico-Eagle kept its gold production guidance for the year unchanged at 2.05-million ounces, with total cash costs and all-in sustaining costs of $700/oz to $750/oz and $950/oz to $1 000/oz, respectively. The guidance excludes any contribution from Hope Bay.

The miner stated that gold production at La India and Meadowbank would be below forecast, owing to operational challenges. However, the shortfall would be offset by stronger-than-expected performance at LaRonde and Meliadine.

Boyd said that the strong production platforms that Agnico-Eagle had at the Abitibi and Meliadine mines would be integral components of the proposed merger-of-equals with Kirkland Lake Gold, which was recently announced.

“The combination is expected to unlock additional value through the realisation of significant operational synergies, while creating a low-risk global gold mining leader with growing production and gold reserves, increased operating cash flow and the financial resource and long-life assets to maintain a high-quality sustainable business, while increasing capital distributions to shareholders,” he added.

Meanwhile, Agnico-Eagle reported quarterly net income of $114.5-million, or $0.47 a share, compared with $222.7-million, or $0.92 a share. Adjusted net income for the quarter under review was $145.4-million, or $0.60 a share.