Agnico Eagle reports third quarter 2014 results – 2014 Gold production expected to exceed top end of forecast, 2015 guidance increased on the back of strong operating performance
Press Release
TORONTO, Oct. 29, 2014 – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) (“Agnico Eagle” or the “Company”) today reported a quarterly net loss of $15.1 million, or a net loss of $0.07 per share for the third quarter of 2014. This result includes a non-cash foreign currency translation loss on deferred tax liabilities of $11.3 million ($0.05 per share), other non-recurring losses of $4.9 million ($0.02 per share), various mark-to-market adjustment losses of $4.3 million ($0.02 per share), non-cash stock option expense of $3.5 million ($0.02 per share) and non-cash foreign currency translation gains of $4.7 million ($0.02 per share). Excluding these items would result in an adjusted net income of $4.2 million, or $0.02 per share. In the third quarter of 2013, the Company reported net income of $74.9 million, or $0.43 per share.
Earnings during the quarter were affected by: additional amortization expenses resulting from the increase in the net book value of depreciable assets under International Financial Reporting Standards (“IFRS”); increased exploration expenses at the new Amaruq project and at the Canadian Malartic Partnership; and lower realized gold prices on timing of sales (approximately 3% lower than the average London PM gold fix for the quarter).
The Company adopted IFRS as of July 1, 2014 and all financial results herein, including those for prior periods, have been calculated in accordance with IFRS.
For the first nine months of 2014, the Company reported net income of $104.3 million, or $0.55 per share. This compares with the first nine months of 2013 when net income was $93.6 million, or $0.54 per share. Financial results in the 2014 period were positively affected by significantly higher gold production (1,041,753 ounces as opposed to 776,892 ounces) due primarily to higher grades at Meadowbank, the acquisition of Canadian Malartic and contributions from commercial production at Goldex and La India.
Third quarter 2014 cash provided by operating activities was $71.2 million ($129.2 million before changes in non-cash components of working capital), compared to cash provided by operating activities of $88.4 million in the third quarter of 2013 ($176.1 million before changes in non-cash components of working capital).
For the first nine months of 2014, cash provided by operating activities was $504.4 million ($472.8 million before changes in non-cash components of working capital), as compared with the first nine months of 2013 when cash provided by operating activities was $340.3 million ($415.2 million before changes in non-cash components of working capital).
The higher net income and cash provided by operating activities in the first nine months of 2014 was in spite of lower realized metal prices and is a result of significantly higher gold production, as described above.
“In 2014, we have strengthened our businesses in each of our four principal operating regions, and we anticipate continued strong production performance in the fourth quarter of 2014 and for 2015 as a number of our key mines continue to expand and ramp up their output. As such, we are pleased to provide increased production guidance of approximately 1.6 million ounces for 2015″, said Sean Boyd , President and Chief Executive Officer. “With the pending closure of the Cayden acquisition and a maiden resource expected at Amaruq by early next year, Agnico is well positioned to drive further growth on both our Northern and Southern business platforms well into the future”, added Mr. Boyd.
NT3
