Analyst Note| Kristoffer Inton |
Agnico-Eagle’s second quarter suffered from temporary shutdowns at eight of its mines due to the ongoing coronavirus pandemic. Not only did those mines reopen before the third quarter began, but also several mines achieved operational records in either milling or production. As a result, gold production was up 49% sequentially and 3% year over year to 493,000 ounces. Compared with the prior year quarter, cash costs per ounce rose 17% to $764 per ounce and all-in sustaining costs rose 13% to $1,016 per ounce. However, this level of cost inflation was largely expected.