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Agnico-Eagle provides 2004 production estimates
Stock Symbols: AEM (NYSE) AGE (TSX)
TORONTO, Nov. 20 /PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited is today
hosting research analysts and investors on a tour of the LaRonde minesite. The
visit will focus on operations and will include an underground and mill tour. A
regional exploration and development update will also be provided regarding the
Company's projects and programs on the Cadillac- Bousquet Belt.
The Company has completed its mine planning process for 2004. As previously
disclosed, the new mine plan was devised with an annual gold production target
of 300,000 ounces. A summary of the estimated metal production and cash
operating costs together with the material assumptions used in the Company's
estimates for 2004 follows:
-------------------------------------------------------------
Ore processed (000's tons) 2,555
Daily throughput rate (tons) 7,000
Grades:
Gold (oz./t) 0.13
Silver (oz./t) 2.50
Zinc (%) 3.40
Copper (%) 0.60
Payable metal production:
Gold (ozs.) 300,000
Silver (000's ozs.) 4,700
Zinc (000's lbs.) 120,000
Copper (000's lbs.) 24,000
Minesite operating costs (C$/ton) 49-51
Total cash operating costs ($/oz.) 155-165
Assumptions:
Gold ($/oz.) 340
Silver ($/oz.) 5.00
Zinc ($/lb.) 0.40
Copper ($/lb.) 0.85
C$/US$ exchange rate 1.30
-------------------------------------------------------------
The Company undertook a comprehensive review of short-term and long-term
production targets. Based on recent experience, a more conservative approach to
reduce mining risk was taken, which is still expected to result in strong cash
flows and low cash operating costs. LaRonde's total cash operating costs are
expected to decline significantly in 2004 to a range of $155 to $165 per ounce,
based on the assumptions and estimates above. The decline in total cash
operating unit costs from those estimated for 2003 is attributable to the
elimination of the El Coco royalty (over $50 per ounce in 2003) and higher gold
and byproduct metal production as ore throughput increases to a steady state of
7,000 tons per day.
The estimated sensitivity of LaRonde's 2004 total cash operating costs to
changes in metal prices and exchange rates follows:
-------------------------------------------------------------------------
Change in variable Impact on total cash operating costs ($/oz.)
-------------------------------------------------------------------------
$0.10 in C$/US$ 25
$0.50/oz. in silver 10
$0.05/lb. in zinc 14
$0.10/lb. in copper 4
-------------------------------------------------------------------------
LaRonde on Track for Fourth Quarter 2003 Production of 70,000 to 75,000
Ounces
The proportion of ore from the lower level mining horizons continued to increase
in October to over 70% from 63% in the third quarter. Gold production was
slightly above 24,000 ounces in October with cash operating costs within the
previously announced range of $210 to $230 per ounce and total cash operating
costs of $240 to $260 per ounce, including the El Coco royalty. October's gold
production was in line with expectations and the Company expects to achieve its
previously disclosed target of 70,000 to 75,000 ounces in the fourth quarter.
Regional Program Plans to be Announced in December
The Company intends to provide an update on its 2004 program for its pipeline of
regional projects, including LaRonde II, Lapa and Goldex, in a separate press
release in December. At that time, the cash dividend for 2004 is also expected
to be set.
Forward Looking Statements
This news release contains certain "forward-looking statements" (within the
meaning of the United States Private Securities Litigation Reform Act of 1995)
that involve a number of risks and uncertainties. There can be no assurance that
such statements will prove to be accurate; actual results and future events
could differ materially from those anticipated in such statements. Risks and
uncertainties are disclosed under the heading "Risk Factors" in the Company's
Annual Information Form (AIF) filed with certain Canadian securities regulators
(including the Ontario and Quebec Securities Commissions) and with the United
States Securities and Exchange Commission (as Form 20-F).
About Agnico-Eagle
Agnico-Eagle is a long established Canadian gold producer with operations
located in northwestern Quebec and exploration and development activities in
eastern Canada and the southwestern United States. Agnico-Eagle's LaRonde Mine
in Quebec is Canada's largest gold deposit. The Company has full exposure to
higher gold prices consistent with its policy of no forward gold sales. It has
paid a cash dividend for 23 consecutive years.
DATASOURCE: Agnico-Eagle Mines Limited
CONTACT: Barry Landen, V.P. Corporate Affairs, Agnico-Eagle Mines
Limited, (416) 947-1212