On Thursday February 13, 2020 Agnico Eagle Mines Ltd. (TSX: AEM) announced its fourth quarter (Q4) results and the numbers were inline with street estimates. The company also announced a record level of gold production totaling 494,678 ounces in the quarter. While production costs were slightly higher at $745/oz., the outlook was negative on capex with spending that exceeded expectations. Higher than anticipated capex for the year was related to the slower ramp-up at Agnico’s Amaruq project in Nunavut and accelerated spending at the Kittila mine in Finland. In addition, AEM also revised 2020 production guidance to 1.875 million ounces, lower that its previous guidance of 1.9 to 2.0 million. Capex has been projected at $740 MM, which above previous guidance. The market reacted negatively on Friday morning and the stock sold off by approximately by 14%, before recovering from its intraday low.
Disclaimer: Palos Funds are shareholders of AEM.
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