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Agnico Eagle paying $1.4 million monthly for Nunavummiut workers to stay home; no return date set

Sending Nunavummiut employees home as a Covid-19 safety precaution is costing gold miner Agnico Eagle $1.4 million per month, the company revealed in its second quarter report on Wednesday.

Reducing operations at Meliadine, Amaruq and the Meadowbank Complex from March 19 through June cost Agnico Eagle $8.1 million, the company reported on Wednesday.
photo courtesy of Agnico Eagle

As of the writing of that report, there was still no timeline set for the 400-500 Nunavummiut employees to return to their jobs after being sent home on March 19.

“The company is in regular discussions with community leaders, the Nunavut chief medical officer and government officials to establish when and how a return to work for these employees could be achieved,” the quarterly report states.

Agnico Eagle has been paying 75 per cent of base salaries to those workers.

Reduced mining operations in Nunavut between March 19 and June costs Agnico Eagle $8.1 million, the company stated.

Despite having seven of its eight mines globally on temporary care and maintenance at points during the second quarter, Agnico Eagle realized a highly-profitable three months largely because of soaring gold prices. Operating activities during the second quarter generated $162.6 million compared to $126.3 million during the equivalent quarter in 2019.

Net income came in at $105.3 million, or 44 cents per share.





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