Miner Agnico beats quarterly profit on gold price surge, raises capex

Miner Agnico beats quarterly profit on gold price surge, raises capex

(Reuters) – Canada’s Agnico Eagle Mines AEM.TO reported a better-than-expected quarterly profit on Wednesday, benefiting from a surge in gold prices and sales volume, and raised its capex forecast for the year as it spends on several sites to boost production.

Agnico now expects total capital expenditure for the year to range between $720 million and $740 million, higher than earlier forecast of $690 million, as it develops its Kittila mine in northern Finland, its first to open outside of Canada.

The increased capital spending also includes development cost for its Amaruq underground project and Meliadine mine in Canada.

Massive stimulus packages to aid economies reeling from coronavirus-driven woes and a low interest rate environment have 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 about 29% to $1,911 per ounce in the reported […]

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