Second quarter earnings of $0.20 per share were reported for Agnico Eagle Mines (NYSE:AEM) on July 30. The results are pointing towards solid organic growth as anticipated in our article here. Q2 earnings results were impacted by the takeover costs for Osisko Mining. Netting out these costs lifts per-share earnings to $0.28 for the quarter, well within the range of Street estimates.
Cash flow from operations was $197.7M leaving $96.2M in free cash flow after accounting for capex of $101.5M. The balance sheet remains strong with $275.1M in cash at the end of June, and working capital of $585.9M. The current ratio computes to 2.9 indicating the company's ability to service its financial obligations in the foreseeable future. The company carries $1.32B in long-term debt.
Strong operational results helped offset the Osisko acquisition costs and production of 326,059 ounces was ahead of the original guidance. This strong number was mainly driven by "higher grades at Meadowbank and contributions from commercial production at Goldex and La India" as stated by CEO Sean Boyd. Integration of Canada's largest gold mine has commenced and Malartic contributed 11,878 ounces to second quarter results. Guidance for 2014 has been lifted to 1.35M to 1.37M ounces at an all-in sustaining cost of $990/oz.
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