Agnico Eagle reports third-quarter loss, revenue up from year ago

TORONTO – Agnico Eagle Mines Ltd. (TSX:AEM) raised its production guidance Wednesday as it reported a third-quarter loss of US$15.1 million.

The gold miner said it expects production to total 1.4 million ounces this year, up from earlier expectations for 1.35 million to 1.37 million ounces.

Agnico Eagle also said production for 2015 is now expected to be approximately 1.6 million ounces as a result of increased production forecasts at its Meadowbank, Kittila and Mexican operations.

The company had expected 1.25 million ounces next year, excluding its share of Canadian Malartic, which it acquired earlier this year.

“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,” president and chief executive Sean Boyd said.

The increased production guidance came as the company, which keeps its books in U.S. dollars, said it lost seven cents per share in its latest quarter as it was hit by several one-time charges. The loss compared with a profit of US$74.9 million or 43 cents per share a year ago.

Excluding the one-time losses, Agnico Eagle said it earned an adjusted profit of US$4.2 million or two cents per share in its latest quarter.

Revenue totalled US$463.4 million, up from $444.3 million in the same quarter last year.

During the quarter, Agnico Eagle produced 349,273 ounces of gold, up from 315,828 ounces a year ago, while silver production slipped to 820,000 ounces from 1.2 million in the third quarter last year.

Zinc production fell to 2,230 tonnes from 3,648 tonnes a year ago and copper production fell to 989 tonnes from 1,241 tonnes.

Agnico Eagle has mines in Canada, Finland and Mexico as well as exploration and development activities in each of those countries as well as in the United States.

Earlier this year, it teamed with Yamana Gold (TSX:YRI) to acquire Osisko Mining Corp., whose main asset was the Canadian Malartic gold mine northwest of Val D’Or, Que.