Miner Agnico's quarterly profit boosted by gold price surge


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)

((;; +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.


More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.