Agnico reports $3.8-million profit

Despite remaining unhedged against weak gold prices, Agnico-Eagle Mines (TSE) reported third-quarter earnings of $3.75 million (13 cents per share) compared with $442,000 (1 cents per share) for the same period last year.

The company attributes the profit surge to a 31% decline in operating costs to US$190 per oz., and to higher grades.

“Agnico-Eagle’s buoyant results partly reflect the impact of a weaker Canadian dollar on our cash operating costs,” says President Paul Penna. “Higher ore grades have also been contributing to rising profit and cash flow.”

Agnico-Eagle produced 46,602 oz. during the quarter, down from 49,858 oz. in the third quarter of 1991. Production for the first nine months increased by 2% to 131,988 oz. while earnings climbed to $5.94 million.