Gold mining giant Agnico Eagle (NYSE:AEM, TSX:AEM) enjoyed a solid 2016 in terms of production, revealing full-year output of 1.6 million gold ounces. The Toronto-based company also increased gold reserves by 5 percent to 19.9 million ounces, and revealed plans to increase that figure to 2 million by 2020 after the Amaruq and Meliadine projects received approval for development.
“Continued strong operating results in the fourth quarter of 2016 allowed us to exceed our production forecast and beat our cost guidance for the fifth consecutive year,” said Sean Boyd, the company’s CEO. “The new operations, along with optimizations at existing mines, are expected to result in production growth from current levels to approximately 2.0 million ounces in 2020, along with a decline in unit costs,” he added.
Agnico Eagle also performed well financially in the last three months, recording net income of US$63 million in 4Q16 compared to a loss of US$16 million in 4Q15. This helped the company to bank net income of US$158.8 million in 2016, compared to US$24.6 million the previous year.
The miner, which has two operating mines in Mexico, also managed to boost its financial flexibility by reducing net debt by US$346 million during 2016.
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