Wednesday, July 28, 2010

Agnico-Eagle (NYSE:AEM) Earnings Reach $100 Million in Second Quarter

Agnico-Eagle Mines Ltd. (NYSE:AEM) (TSE:AEM) released its second quarter numbers, and they have a lot to celebrate, as they generated $100.4 million in earnings on revenue of $394.9 million.

Last year in the same quarter the company only had a profit of $1.2 million, or 1 penny a share. Revenue in the second quarter of 2009 reached $133.1 million.

Gross mine profits and increased gold production were the keys to the turnaround, with gold production rising 116 percent in the quarter, while mine profits rose 151 percent.

Chief executive Sean Boyd said in a statement, "Four of the mines are now operating at steady state with the other two in the late stages of optimization.

"Further increases in gold production and lower cash operating costs are expected in the second half of 2010 as we continue to optimize all our mines and focus on driving down the unit costs at our Kittila and Meadowbank mines."

Full year gold production guidance was maintained at from 1 million to 1.1 million ounces.

The average realized price for gold in the quarter was $1,222 an ounce, far above the $962 from 2009.

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