Agnico Eagle Mines net income drops to US$205.2 million in fourth quarter

TORONTO – Agnico Eagle Mines Ltd. says its profit fell in the fourth quarter, as it paid 75 per cent of base salaries to its Nunavut-based workforce, which has been at home under COVID-19 guidelines.

The company says it had fourth-quarter net income of US$ 205.2 million, or 85 cents US per basic share, compared with net income of US$ 331.7 million, or US$ 1.39 per basic share, in the fourth quarter of 2019.

The Canadian gold mining company says revenue from mining operations was $ 928.4 million in the three months ending Dec. 31, compared with $ 753.1 million in the same period of 2019.

On average, analysts polled by Refinitiv expected Agnico Eagle Mines to report net income of 86 cents US per share on revenue of US$ 929.27 million in the fourth quarter.

The company says 285 of its employees tested positive for COVID-19 during the fourth quarter, mostly in Mexico, with a majority of cases detected by the company’s screening protocols.

The company says it will raise its budget for exploration by more than 40 per cent to $ 163 million this year, amid higher average gold prices in 2020 and record levels of gold production in the fourth quarter.

This report by The Canadian Press was first published Feb.12, 2021.

Companies in this story: (TSX:AEM)

TORONTO STAR