Agnico Eagle reports $21.6 million loss on pandemic related mine shutdowns

Agnico Eagle reports $21.6 million loss on pandemic related mine shutdowns
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TORONTO — Shares in Agnico Eagle Mines Ltd. rose Friday after it released new production guidance and reported a first-quarter loss linked to temporary mine shutdowns to control spread of the COVID-19 pandemic.

Agnico Eagle shares on the Toronto Stock Exchange rose by as much as 6.8 per cent or $5.53 to $86.86 before dropping back to $83.86 at 11 a.m. EDT.

The Toronto-based gold miner says it expects to produce 1.63 million to 1.73 million ounces this year, down from previous guidance of 1.875 million ounces, mainly due to pandemic impacts at seven of its eight mines.

In March, the company sent home its Nunavut-based workforce and reduced activities at its Meliadine and Amaruq gold mines. It also temporarily suspended operations in Quebec and Mexico and had a three-day shutdown of underground operations at the Kittila mine in Finland.

Agnico Eagle reported a net loss of $21.6 million or nine cents per share on revenue of $672 million in the three months ended March 31, compared with a gain of $37 million or 16 cents on revenue of $532 million a year earlier.

It said it earned adjusted net income of $56 million or 23 cents after subtracting non-cash and one-time expenses.

This report by The Canadian Press was first published May 1, 2020.

Companies in this story: (TSX:AEM)

The Canadian Press

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