Feb 13 Agnico-Eagle Mines Ltd slashed
its quarterly dividend to 8 cents per share from 22 cents,
saying the reduction reflects current market conditions as gold
is trading about $100 per ounce lower than the company's
realized price in 2013.
However, the miner reported better-than-expected
fourth-quarter results as its total gold production increased
about 36 percent.
"Despite the strong operating results, and solid production
growth ahead from our existing assets, we have decided to reduce
our quarterly dividend to enhance our financial flexibility in
the current lower gold price environment," Chief Executive Sean
Boyd said in a statement.
Agnico-Eagle's gold per ounce realized prices for the full
year fell to $1,366 per ounce from $1,667 a year earlier.
Gold prices fell 28 percent last year - the first decline in
13 years, hitting a low of $1,180 an ounce at one point. Spot
Gold is currently trading at the $1,290 per ounce level.
Agnico-Eagle said total gold production in the fourth
quarter rose 36 percent to 322,443 ounces pulling the full-year
gold production up 4 percent to about 1,099,335 ounces.
It expects 2014 gold production in the range of 1,175,000
ounces to 1,205,000 ounces.
The company reported a net loss of $453.3 million, or 2.61
cents per share, in the three months ended December compared
with a profit of $82.8 million, or 48 cents per share, a year
Agnico-Eagle recorded a non-cash after tax impairment of
$436.3 million during the quarter due to impairment tests at its
Excluding items, adjusted net income for the quarter was
$44.2 million, or 25 cents per share. Revenue from mining
operations fell to $437.2 million from $449.4 million a year
Analysts on average were expecting earnings of 19 cents per
share on revenue of $394.3 million, according to Thomson Reuters
The weighted average total cash cost fell 19 percent to $623
per ounce of gold produced in the quarter ended Dec. 31.
The miner's gold reserves stood at about 17 million ounces
at the end of 2013 with an improvement of 11 percent in average
production grade to 3.51 grams per tonne.
Agnico-Eagle's shares closed at C$36.16 on the Toronto Stock
Exchange on Wednesday.