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
- 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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