Canadian miner Agnico Eagle Mines posted record free cash flow in the second quarter and reaffirmed its full-year production guidance as higher gold prices, cost control and strong mine performance bolstered earnings.

The Toronto-based miner generated free cash flow of $1.31-billion, more than double the previous quarter, while net income surged to $1.07-billion, or $2.13 a share. Adjusted net income came in at $976-million, or $1.94 a share, also a record.

“Our portfolio of high-quality assets continued to deliver exceptional results this quarter, generating record free cash flow, more than doubling the prior quarter,” CEO Ammar Al-Joundi said in a statement Wednesday. “This performance reflects the strength of the gold price environment, our disciplined cost management and the consistency of our operational execution.”

Gold production totalled 866 029 oz in the quarter, with all-in sustaining costs (AISC) of $1 289/oz and cash costs of $933/oz, placing the company ahead of the mid-point of its cost guidance. Canadian Malartic, LaRonde, Macassa and Fosterville led the strong performance.

At mid-year, Agnico Eagle has delivered about 51% of its full-year production target, with costs tracking below the midpoint despite higher royalty payments driven by gold prices.

The company maintained its full-year guidance of 3.3-million to 3.5-million ounces of payable gold production, cash costs of $915/oz to $965/oz, and AISC of $1 250/oz to $1 300/oz. Capital expenditure forecasts were also unchanged.

Agnico ended the quarter with net cash of $963-million, bolstered by a $419-million increase in cash and the reduction of long-term debt by $550-million. The company repaid and redeemed a total of $550-million in debt, including maturities from 2016 and 2017 senior notes.

“While delivering record free cash flow, we remained disciplined in our capital allocation – reinvesting in our business, strengthening our balance sheet and returning capital to shareholders,” said Al-Joundi.

The company returned $300-million to shareholders through dividends and share buybacks. It declared a quarterly dividend of $0.40 a share and repurchased 836 488 shares for $100-million under its renewed normal course issuer bid, which now allows for up to $1-billion in repurchases.