Agnico Eagle Mines Ltd. said Feb. 14 that its net profit in the fourth quarter of 2017 declined 44.0% year over year to US$35.1 million, or 15 cents per share, from US$62.7 million, or 28 cents per share.
Quarterly revenues climbed 13% year over year to US$565.3 million from US$499.2 million, while operating costs rose 12.8% to US$287.7 million in the three-month period, from US$255.1 million a year earlier.
The Canadian gold miner recorded US$166.9 million in operating income during the quarter, increasing 38.4% from US$120.6 million a year earlier, attributed to 5% higher gold sales and a 7% increase in realized gold price.
CapEx for the quarter stood at US$236.6 million, up 51.3% from US$156.4 million a year earlier.
The company declared a quarterly dividend of 11 cents per share.
During the quarter ended Dec. 31, 2017, the company produced 413,212 ounces of gold, down 3.1% from 426,433 ounces in the prior-year period, at an all-in sustaining cost of US$905 per ounce.
For the full year of 2017, Agnico Eagle's net income rose by 53.6% to US$243.9 million from US$158.8 million in the prior-year period, which was caused by a 4.9% growth in revenue to US$2.24 billion as a result of higher realized metal prices and higher metal sales volumes.
Operating costs, on the other hand, rose 2.5% to US$1.06 billion during the full year of 2017 from US$1.03 billion a year before.
The company posted an operating profit of US$767.6 million, compared with US$778.6 million a year earlier, while CapEx totaled US$874.9 million, up from US$535.3 million.
For full-year 2017, the company produced 1.7 million ounces of gold, up 3.0% year over year and exceeding its revised full-year guidance of 1.68 million ounces, at a lower all-in sustaining cost of US$804 per ounce, from US$824 per ounce in the prior-year period.
Meanwhile, Agnico Eagle forecasts payable gold production of 1.5 million ounces of gold in 2018, rising to a range of between 1.6 million ounces and 1.8 million ounces in 2019 as a result of the ramp up at the Amaruq and Meliadine mines of its Nunavut operations.