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« Gold Prices Hit $1000 | Main | Kinross Gold Corporation Declares $0.04 Dividend! »

Agnico-Eagle Mines Limited: 4th Quarter Results hit by lower Zinc prices

AEM logo 20 feb 09.JPG

Despite record gold production Agnico-Eagle results felt the drag of lower Zinc prices this quarter as the base metals sector in general have taken a beating. However according to Sean Boyd, the CEO, appearing on BNN today, gold will make up 95% of the companies revenues next year.

Fourth quarter 2008 highlights as listed below:

- Record Production - record gold production of 89,360 ounces in the
fourth quarter contributing to record annual gold production of
276,762 ounces
- Good Cost Control - operating cost per tonne targets achieved at both
LaRonde and Goldex
- Record gold reserves - gold reserves rise 8%, or 1.4 million ounces
net of production, to 18.1 million ounces
- Record gold resources - gold resources rise to record level, even
after conversion of 1.7 million ounces to reserves in 2008
- Gold Production Growth Accelerating - Goldex achieves design
capacity. Kittila in the commissioning phase and pouring gold. Lapa
and Pinos Altos on track for 2009 openings. Meadowbank set to open in
first quarter of 2010

"Compared to the fourth quarter last year, gold production increased 48% as LaRonde continued its steady performance and the new Goldex mine achieved its design capacity in December", said Sean Boyd, Vice-Chairman and Chief Executive Officer. "In addition, with our gold reserves at record levels we are well positioned to continue to increase gold output with 2009 production expected to rise more than 100% from the 2008 level," added Mr. Boyd.

To read the report in full please click this link.

Agnico-Eagle's proven and probable byproduct reserves total approximately 141 million ounces of silver, 584,000 tonnes of zinc and 103,000 tonnes of copper.

The increase in total cash costs is largely due to significantly lower byproduct metal prices which caused substantial concentrate settlement losses in the fourth quarter of 2008.

Well Agnico-Eagle still remains a favorite with us so we will be holding on to this stock and maybe buying should a severe dip occur.

Got any comments? Then fire them in!

Agnico-Eagle Mines Limited trades on the NYSE under the ticker symbol of AEM and on the Toronto Stock Exchange under the symbol of AEM.TO.

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Reader Comments (2)

Why are mining companies like Yamana Gold and Barrick Gold lagging behind the likes of Newmont Mining ,Lihir,Goldcorp?
was purely due to the options expiry on Friday or are they way undervalued at the moment:presuming Gold stays above 950.Your comments are appreciated?

February 21, 2009 | Unregistered CommenterDick

The sharp fall in profits because of the decline in income from zink hit the stock very hard last year, but is already discounted in the stock price now; thus the failure of the stock to recover to the price level before zink cratered even as the price level of gold itself has nearly regained the level of last March.

That bad news is in the price, so from here on, the attention will be on income from gold and silver.


February 21, 2009 | Unregistered CommenterThomas F Barton

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