Bloomberg News

Agnico-Eagle Sees More Improvement in Output in 4th Quarter

October 11, 2011

(Updates with closing share price in eighth paragraph.)

Oct. 11 (Bloomberg) -- Agnico-Eagle Mines Ltd., the fifth- largest Canadian gold producer by market capitalization, increased production by about 11 percent in the third quarter, helped by better performances at mines in Finland and the Canadian arctic.

Agnico-Eagle, based in Toronto, produced 265,978 ounces in the three months ended Sept. 30, compared with 239,328 ounces in the second quarter, it said in a statement.

“The higher level of production is largely due to improved performance at Kittila and Meadowbank,” the company said. “Further improvements in gold production and operating performance are anticipated in the fourth quarter of 2011.”

Agnico-Eagle will spend C$25 million ($24.3 million) this year, up from an initially budgeted C$20 million, to tackle water-inflow and ground-subsidence problems at its Goldex mine in Quebec, the company said.

Water flowing into the mine lowered the water table and may have affected the integrity of the rocks. The mine and processing facilities are operating normally, Agnico-Eagle said.

The company expects to spend another C$20 million in 2012 on monitoring and remediation of the problem and will reassess the situation every three months.

The issues at Goldex “appear to be potentially more serious than initially assumed,” David Haughton, a Toronto- based analyst at Bank of Montreal, wrote in a note to clients.

Agnico-Eagle rose 2.6 percent to C$60.74 in Toronto. The shares have fallen 21 percent this year.

The four largest Canadian gold producers by market value are Barrick Gold Corp., Goldcorp Inc., Kinross Gold Corp. and Yamana Gold Inc.

--Editors: Jessica Resnick-Ault, Charles Siler

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net.

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net.


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus