TORONTO, March 28 /CNW/ --
Stock Symbol: AEM (NYSE and TSX)
TORONTO, March 28 /CNW/ - Agnico-Eagle Mines Limited ('Agnico-Eagle' or the 'Company') reported on March 10, 2011 that the
kitchen and associated facilities at its Meadowbank mine were destroyed
in a fire. The following is an update on current operations at the mine
with estimates of the impact of Meadowbank on full year gold production
for the Company.
Since the fire, the mine has been operating with a substantially reduced
workforce at a reduced production rate. Over most of this period, the
plant has been processing lower grade ore from stockpiles due to the
reduction in workforce. The Company expects to return Meadowbank to
normal staffing levels of approximately 450 people by the end of April.
Temporary kitchen facilities have been delivered to site and are
currently being prepared for use. The Company expects a permanent
replacement kitchen to be installed during the fourth quarter of 2011.
As a result of the fire, and due to unusually difficult winter weather
conditions encountered earlier this year, daily throughput at
Meadowbank during the first quarter of 2011 is expected to average
approximately 6,900 tonnes per day at lower than reserve grade.
Accordingly, the Company now expects total cash costs per ounce(1)( )at Meadowbank to be significantly higher in the first quarter of 2011
than the previously forecast average of $600 for the full year. First
quarter financial and operating results are expected to be released on
April 28, 2011.
The mining and processing rates are anticipated to begin to improve
during the second quarter as staffing levels increase. Grades are also
expected to improve in the second quarter as full mining operations in
the pit resume and less low grade stockpile material is processed.
During the third quarter of 2011, a permanent secondary crushing unit is
expected to be commissioned which is projected to allow the mill to
reach its design throughput of approximately 8,500 tonnes per day for
the second half of 2011.
Agnico-Eagle now expects full year gold production at Meadowbank to be
approximately 310,000 ounces, at total cash costs of approximately $700
per ounce with approximately 60% of this production coming in the
second half of the year. This compares to Agnico-Eagle's previously
announced full-year guidance for Meadowbank of approximately 360,000
ounces at cash costs of approximately $600 per ounce.
Incorporating the recent events at Meadowbank, Agnico-Eagle now expects
Company-wide gold production in the first quarter to be approximately
245,000 ounces. Full year 2011 gold production is now expected to be
between 1.08-1.15 million ounces, split approximately 45% and 55%
between the first and second halves of the year, respectively. This
compares to Agnico-Eagle's previously announced (December 15, 2010)
full year production guidance of between 1.13-1.23 million ounces.
Full year, Company-wide, total cash costs are expected to be negatively
impacted by approximately $25 per ounce, resulting in a new range of
$445-$495 per ounce(2). This compares to Agnico-Eagle's previously announced guidance of
$420-$470 per ounce.
Mine Tour to Meadowbank and Meliadine
Agnico-Eagle will be hosting a trip for equity analysts and buy-side
investors on June 28, 2011 to Meadowbank. The tour will include a
project review of Meliadine while at the Meadowbank site. The tour
will be a day trip via chartered airplane from Toronto. Interested
parties should contact Hazel Winchester at hwinchester@agnico-eagle.com, or 416-847-3717. All presentation materials will also be posted on
the Company's website.
About Agnico-Eagle
Agnico-Eagle is a long established Canadian gold producer with
operations located in Canada, Finland and Mexico and exploration and
development activities in Canada, Finland, Mexico and the United
States. Agnico-Eagle's LaRonde mine is Canada's largest operating gold
mine in terms of reserves. The Company has full exposure to higher
gold prices consistent with its policy of no forward gold sales. It
has declared a cash dividend for 29 consecutive years. Agnico-Eagle's
registered office is located at 145 King Street East, Suite 400,
Toronto, Ontario M5C 2Y7.
For more information on the Company please visit www.agnico-eagle.com
Forward-Looking Statements
The information in this news release has been prepared as at March 28,
2011. Certain statements contained in this press release constitute
'forward-looking statements' within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and 'forward looking
information' under the provisions of Canadian provincial securities
laws and are referred to herein as 'forward-looking statements'. When
used in this document, words such as 'anticipate', 'expect',
'estimate', 'forecast', 'planned', 'will', 'likely', 'schedule' and
similar expressions are intended to identify forward-looking
statements.
Such statements may include without limitation: the Company's
forward-looking production guidance, including estimated ore grades,
project timelines, orebody configurations, metal production, life of
mine horizons, commencement of production estimates, the estimated
timing of scoping studies, recovery rates, and mill throughput; and
other statements and information regarding anticipated trends with
respect to the Company's operations, exploration and the funding
thereof. Such statements reflect the Company's views as at the date of
this press release and are subject to certain risks, uncertainties and
assumptions. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable by
Agnico-Eagle as of the date of such statements, are inherently subject
to significant business, economic and competitive uncertainties and
contingencies. The factors and assumptions of Agnico-Eagle contained in
this news release, which may prove to be incorrect, include, but are
not limited to, the assumptions set forth herein and in management's
discussion and analysis and the Company's Annual Report on Form 20-F
for the year ended December 31, 2010 ('Form 20-F') as well as: that
there are no significant disruptions affecting operations, whether due
to labour disruptions, supply disruptions, damage to equipment, natural
occurrences, political changes, title issues or otherwise; that
permitting, production and expansion at each of Agnico-Eagle's mines
and growth projects proceeds on a basis consistent with current
expectations, and that Agnico-Eagle does not change its plans relating
to such projects; that the exchange rate between the Canadian dollar,
European Union euro, Mexican peso and the United States dollar will be
approximately consistent with current levels or as set out in this news
release; that prices for gold, silver, zinc, copper and lead will be
consistent with Agnico-Eagle's expectations; that prices for key mining
and construction supplies, including labour costs, remain consistent
with Agnico-Eagle's current expectations; that Agnico-Eagle's current
estimates of mineral reserves, mineral resources, mineral grades and
metal recovery are accurate; that there are no material delays in the
timing for completion of ongoing growth projects; that the Company's
current plans to optimize production are successful; and that there are
no material variations in the current tax and regulatory environment.
Many factors, known and unknown, could cause the actual results to be
materially different from those expressed or implied by such
forward-looking statements. Such risks include, but are not limited to:
the volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and metal recovery
estimates; uncertainty of future production, capital expenditures, and
other costs; currency fluctuations; financing of additional capital
requirements; cost of exploration and development programs; mining
risks; risks associated with foreign operations; governmental and
environmental regulation; the volatility of the Company's stock price;
and risks associated with the Company's byproduct metal derivative
strategies. For a more detailed discussion of such risks and other
factors, see the Form 20-F, as well as the Company's other filings with
the Canadian Securities Administrators and the SEC. The Company does
not intend, and does not assume any obligation, to update these
forward-looking statements and information, except as required by law.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements. Certain of the foregoing statements,
primarily related to projects, are based on preliminary views of the
Company with respect to, among other things, grade, tonnage,
processing, recoveries, mining methods, capital costs, total cash
costs, minesite costs, and location of surface infrastructure. Actual
results and final decisions may be materially different from those
currently anticipated.
1 Total cash costs per ounce are not a recognized measure under US GAAP
and this data may not be comparable to data presented by other gold
producers. For reconciliation of historical total cash costs per ounce
to production costs, as reported in the Company's historical financial
statements, please see the Company's financial statements and Form
20-F, as filed with US and Canadian securities regulators.
2 Assumptions: $1300/oz gold, $33/oz silver, $2200/t zinc, $8500/t
copper, C$0.99 per USD, $1.40 USD per Euro
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