Agnico Eagle’s Q2 net profit is US$37.7 million, revenue rises on higher output

TORONTO – Agnico Eagle Mines Ltd (TSX:AEM) had US$37.7 million of net income in the second quarter and the profit would have been higher without costs associated with its acquisition of a 50 per cent stake in Osisko Mining, in partnership with Yamana Gold (TSX:YRI).

Agnico Eagle’s profit for the three months ended June 30 amounted to 20 cents per share, which compares with a net loss of $24.4 million or 14 cents per share a year earlier.

Excluding a US$6.1-million item related to Osisko, foreign exchange, stock options and a non-recurring gain, Agnico would have had US$52.8 million of net income or 28 cents per share in the second quarter.

Its revenue was US$437.8 million, up from $336.4 million in the second quarter of 2013, due to significantly higher gold production volumes.

Agnico Eagle said its production benefitted from higher grades of ore at its Meadowbank mine in Nunavut and contributions from production at Goldex and La India.

“With the closing of the Osisko transaction in the second quarter, we are now working closely with our partner Yamana to optimize the Canadian Malartic mine and maximize the potential of the Kirkland Lake portfolio,” Sean Boyd, Agnico’s president and chief executive officer, said in a statement issued Wednesday after markets closed..

Agnico Eagle also said Wednesday that it’s increasing its 2014 production guidance to about 1.35 million ounces, which is above the 2014 guidance range of 1.175 million to 1.205 million ounces.