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Agnico boosts dividend by 75% after strong quarter

Buoyed by a strong operational performance and a record realised gold price during the September quarter, Agnico Eagle Mines has increased its dividend by 75% to US35c.
Agnico boosts dividend by 75% after strong quarter Agnico boosts dividend by 75% after strong quarter Agnico boosts dividend by 75% after strong quarter Agnico boosts dividend by 75% after strong quarter Agnico boosts dividend by 75% after strong quarter

Agnico Eagle Mines’ Meliadine operations in Canada’s Northwest Territories

Staff reporter

The company said operations had rebounded after COVID-19 interruptions in the previous quarter and several mines had set operational records, including Meliadine's record quarterly gold production.

Cash provided by operating activities was a record $462.5 million, compared with $349.2 million a year earlier, generating strong free cash flow and the company reported quarterly net income of $222.7 million, or 92c per share.

Overall output had returned to near-record levels seen in the fourth quarter of 2019, Agnico said, with payable gold production at 492,693 ounces at all-in sustaining costs of $1,016/oz.

It kept 2020 guidance unchanged at 1.68-1.73 million ounces and AISC at $1,025-$1,075/oz.

Despite much M&A talk and activity in the gold sector, president and CEO Sean Boyd did not hint at Agnico Eagle joining in.

"With similar production levels expected in the fourth quarter of 2020, we remain confident in our business and its ability to generate significant free cash flow on a go-forward basis," he said.

"Strong cash-flow generation, together with recent exploration success in several of our long-life mining camps, gives us confidence that we have a sustainable, long-term, self-funding business."

Agnico shares (TSX: AEM) closed down 4.7% to C$101.26, on what was a tough day for gold equities, capitalising it at $24.6 billion (US$18.5 billion).