Sean Boyd, the CEO of Agnico Eagle Mines Ltd (NYSE:AEM), expressed that they continued to witness robust operating performance in Q3 2017, resulting in robust cash flow generation and record gold production. Provided this robust performance, they have increased their dividend by 10% and have even positively revised 2017 production guidance. Their key projects in Nunavut continue to grow on time and on budget and they are thrilled by the notable growth in gold production and the linked cash flows that these assignments are forecast to offer.
In Q3 2017, Agnico continued robust operating performance yields and recorded strong quarterly gold production. Payable gold production stood at 454,362 ounces at production costs/ounce of $578, total cash costs/ounce of $546 and “AISC” of $789. Higher than projected grades and tonnage led gold production at the LaRonde mine. Payable gold production in Q3 2017 came at 105,345 ounces at production costs/ounce of $377 while total cash costs/ounce came at $328.
Provided the robust nine-month operational performance, production for the year is now anticipated to surpass 1.68 million ounces of gold versus previous gold projection of 1.62 million ounces. Total cash costs/ounce are now projected to come in a range of $570 to $600 as compared to previously reported range of $580 to $610 and AISC are projected to be $820 to $870 per ounce as compared to previously reported range of $830 to $880 per ounce.
Surface construction activities are advancing well, with external cladding and roofing projected to be completed on the multi-service building, powerhouse and mill facility in November 2017. Underground advancement is on plan and critical mining equipment is presently being commissioned.
Agnico Eagle Mines has increased dividend payout by 10% to $0.11 for the quarter. The previous quarterly payout was $0.10. For Q3 2017, the company posted quarterly net income of $71.0 million.