Agnico Eagle's 'exceptional' results elicit market shrug

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High gold prices aren\u0027t translating into higher share prices for miners. Learn more here.

The company, which produces more gold in Canada than any other, reiterated production in 2022 should surge to at least 3.2 million ounces — up 60 per cent from the 2 million ounces record set in 2021 — despite lingering effects from COVID-19 that caused workforce disruptions at the start of the year.

“We’re excited about where we are and we’re excited about where we’re going,” Al-Joundi said on an earnings call on Friday morning. That all appeared to change in late January when Russian troops gathered on the borders of Ukraine, and eventually invaded the country. Amid subsequent western sanctions against Russia, and the trade disruptions it caused, gold prices shot back above US$2,000 per ounce in March.

Similarly, Agnico’s share price has gyrated, hitting a high of $109.74 in November 2020 before sliding all the way down to $59.04 as of Jan. 22. In recent weeks, it had been rising again but is down 15 per cent this month. Gold typically benefits as a safe-haven asset in times of inflation, but that can be offset if the the U.S. dollar value rises with increased interest rates.

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