TORONTO, July 27, 2016 /PRNewswire/ – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported quarterly net income of $19.0 million, or net income of $0.09 per share for the second quarter of 2016 (on an undiluted basis). This result includes a non-cash foreign currency translation loss on deferred tax liabilities of $7.0 million ($0.03 per share), various mark-to-market and other adjustment losses of $5.8 million ($0.03 per share), non-cash foreign currency translation losses of $5.5 million ($0.02 per share), non-cash stock option expense of $3.1 million ($0.01 per share), non-recurring gains of $4.4 million ($0.02 per share), and unrealized gains on financial instruments of $1.0 million (nil per share). Excluding these items would result in adjusted net income1 of $35.0 million or $0.16 per share for the second quarter of 2016. In the second quarter of 2015, the Company reported net income of $10.1 million or net income of $0.05 per share.
For the first six months of 2016, the Company reported net income of $46.8 million, or $0.21 per share. This compares with the first six months of 2015 when net income was $38.8 million, or $0.18 per share. Financial results in the 2016 period were positively affected by higher gold production and realized prices (approximately 2% and 3% higher, respectively) and higher by-product metals revenues.
Second quarter 2016 cash provided by operating activities was $229.5 million ($192.7 million before changes in non-cash components of working capital). This compares to cash provided by operating activities of $188.3 million in the second quarter of 2015 ($152.8 million before changes in non-cash components of working capital).
For the first six months of 2016, cash provided by operating activities was $375.2 million ($360.2 million before changes in non-cash components of working capital), as compared with the first half of 2015 when cash provided by operating activities was $331.8 million ($329.6 million before changes in non-cash components of working capital).
The increase in cash provided by operating activities before changes in working capital during the second quarter 2016 and first six months of 2016 was mainly due to a combination of higher gold and by-product metals production, as described above.
"The second quarter saw continued strong operating results from all of our mines coupled with record safety performance", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "Given these strong results and a more robust gold price environment, we have significantly improved our financial position, while continuing to make important investments in several of our growth projects. In addition, we have raised our dividend signaling our confidence in our business and growth plan", added Mr. Boyd.
