AEM

Miner Agnico's quarterly profit boosted by gold price surge

Credit: REUTERS/CHRIS HELGREN

Adds earnings details, background

Oct 28 (Reuters) - Canada's Agnico Eagle Mines AEM.TO, AEM.N reported a near three-fold rise in quarterly profit on Wednesday, benefiting from a surge in gold prices and sales volume following a ramp-up in operations.

Massive stimulus packages to aid economies reeling from coronavirus-driven woes and a low interest rate environment helped drive about 25% increase in prices of gold this year as the metal is seen as an inflation hedge.

Agnico said average realized price for gold jumped 29.1% to $1,911 per ounce in the third quarter from a year earlier, while gold production rose over 3% to 492,693 ounces.

The company said it expects similar production levels in the current quarter.

Net income rose to $222.6 million, or 91 cents per share, in the quarter ended Sept. 30 from $76.6 million, or 32 cents per share, a year earlier.

Revenue rose to $980.6 million from $683 million.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Vinay Dwivedi and Maju Samuel)

((Arundhati.Sarkar@thomsonreuters.com; twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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