Agnico Eagle Mines Limited (AEM) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $62.65 million, or $ 0.28 a share in the quarter, against a net loss of $15.54 million, or $0.07 a share in the last year period. Revenue during the quarter grew 3.37 percent to $499.21 million from $482.93 million in the previous year period. Total expenses were 95.05 percent of quarterly revenues, up from 90.98 percent for the same period last year. That has resulted in a contraction of 407 basis points in operating margin to 4.95 percent.
Operating income for the quarter was $24.71 million, compared with $43.55 million in the previous year period.
"Continued strong operating results in the fourth quarter of 2016 allowed us to exceed our production forecast and beat our cost guidance for the fifth consecutive year and positions us to complete the development of our growth projects over the next two years", said Sean Boyd, Agnico Eagle's chief executive officer. "Our primary focus will be on developing and expanding our business in Nunavut as we complete the construction of a new mine at Meliadine and develop the Amaruq satellite deposit at Meadowbank. These new operations, along with optimizations at existing mines, are expected to result in production growth from current levels to approximately 2.0 million ounces in 2020, along with a decline in unit costs", added Mr. Boyd.
Operating cash flow improves significantly
Agnico Eagle Mines Limited has generated cash of $778.62 million from operating activities during the year, up 26.35 percent or $162.38 million, when compared with the last year. The company has spent $553.49 million cash to meet investing activities during the year as against cash outgo of $374.52 million in the last year.
Cash flow from financing activities was $190.39 million for the year as against cash outgo of $280.76 million in the last year period.
Cash and cash equivalents stood at $539.97 million as on Dec. 31, 2016, up 334.94 percent or $415.82 million from $124.15 million on Dec. 31, 2015.
Debt moves up
Agnico Eagle Mines Limited has witnessed an increase in total debt over the last one year. It stood at $1,208.22 million as on Dec. 31, 2016, up 5.78 percent or $65.99 million from $1,142.23 million on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.25 for the quarter from 2.43 for the same period last year.
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