Agnico Eagle Mines Limited has reported quarterly net income of $28.9 million, or $0.20 per share for the first quarter of 2008 with the First quarter 2008 highlights being as follows:
“Strong Operating Results - good metal output and cost control contributed to solid operating earnings and strong cash flow Low Costs. Low total cash costs per ounce at LaRonde of minus $399. The progress On Gold Production Growth - new Goldex gold mine now commissioning. Kittila gold mine project on track for 2008 production. Significant Exploration Upside - continuing to receive encouraging results outside of currently known reserve/resource envelopes at Pinos Altos and Kittila”
A report carried by Bloomberg went on to say that the gold producer had boosted output fivefold in three years, and first- quarter profit rose 16 percent because of record bullion prices. Chief Executive Officer Sean Boyd, said; “With the new Goldex mine starting operations in April and our new Kittila mine expected to open this September, we expect to see improving cash flows over the next several quarters,''
Taking a quick look at the chart we can see that Agnico hit a high of $80.00 reflecting gold’s terrific start to the year. We would also draw your attention to the MACD where the black line has just crossed over the red line in an upward movement. This sign is usually very positive for a stock, but as with all indicators it is not cast in stone that the stock should rise. We would politely suggest that you watch it on the charts of the stocks that have bought and make a mental note of how accurate it is as it could be useful to you in the future. The other thing to notice is that this stock did react to gold as it moved up.
If you are holding a gold stock that did not move up with gold then do some investigation into the circumstances that restrained your stock. If your stock does not rally when gold does you need to ask yourself just why are you holding it?
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