- Agnico Eagle Mines (AEM +1.4%) is higher after reporting better than expected Q4 earnings and three-year guidance that points to rising production.
- But AEM posted an unadjusted Q4 loss of $393.7M, compared to a $37.5M profit a year ago, as the miner took $389.7M in impairment losses, including a $250M goodwill impairment on the Canadian Malartic Mine and a $100M asset impairment at the El Barqueno project.
- AEM says Q4 gold production fell slightly to 410.7K oz. from 413.2K oz. in the year-ago period, and full year output fell 5% Y/Y to 1.63M oz. from 1.71M, citing reduced throughput at Meadowbank as mining there winds down.
- Q4 all-in sustaining costs fell to $852/oz. from $905/oz. a year earlier, while full-year AISC was $877/oz., up from $804/oz.
- AEM lifts its 2019 gold production guidance slightly to 1.75M oz. from 1.7M oz. previously while leaving the mid-point of guidance for 2020 at 2M oz. and for 2021 at 2.05M oz.; all-in sustaining costs are seen at $875-$925/oz. in 2019 before decline amid expected higher production in 2020.
- AEM also raises its quarterly dividend by 14% to $0.125/share.