Canadian Mining Journal

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GOLD: Agnico Eagle reports record third quarter production



The Amaruq gold mine in Nunavut is Agnico’s newest. (Image: Agnico Eagle Mines)

TORONTO – Agnico Eagle Mines reported many good numbers in its Q3 2019 report – starting with record gold production of 476,937 oz. for the quarter. That included pre-commercial production of 33,134 oz. at Amaruq, where  commercial production was declared on Sept. 30.

All-in sustaining costs were $903 per ounce (all U.S. dollars), not including pre-production output at Amaruq.

The third quarter also saw Agnico return to free cash flow generation – something that had not been possible as two mine development projects in Nunavut were under construction since 2017. Total capital costs for Amaruq were $397 million, up slightly from the forecast $370 million primarily due to the timing of commercial production. The Meliadine mine reached commercial production in May 2019.

Agnico has also increased its production guidance for 2019. That number is expected to be 1.77 million to 1.78 million oz. of gold, up from the previous number of 1.75 million oz. All-in sustaining costs are anticipated to be between $875 and $925 per ounce.

Production and exploration details for all of Agnico’s mines and projects are included in the news release dated Oct. 23, 2019, posted at www.AgnicoEagle.com.