(All amounts expressed in U.S. dollars unless otherwise noted)
Stock Symbols: AEM (NYSE)
AGE (TSX)
TORONTO, Dec. 7 /PRNewswire-FirstCall/ - Agnico-Eagle Mines Limited today
announced an annual dividend of $0.03 per share, representing the 25th
consecutive year that Agnico-Eagle has paid a distribution to its
shareholders.
The Company has declared a dividend of $0.03 per share, payable March 15,
2005 to shareholders of record March 7, 2005. The dividend rate is unchanged
from last year as management and the board of directors have decided to
conserve cash for the longer-term development and growth of its asset base.
Under the Company's Dividend Reinvestment Plan, shareholders will have
the opportunity to reinvest their dividends into shares of Agnico-Eagle.
Shareholders who have not received details of the Plan should contact the
Company or visit its website at www.agnico-eagle.com.
Bank Facility Amended and Extended Three Years
Agnico-Eagle also announced today that its lenders have agreed to amend
its bank facility. After successfully achieving the LaRonde completion tests
under its existing facility, the Company sought to extend the revolving
period, which would have expired at the end of 2004. Under the terms of the
amended facility, the Company will have a $100 million line of credit
available on a revolving basis for at least three years. The amendment will
also give the Company improvements in pricing and additional flexibility with
regards to use of proceeds for projects and potential acquisitions. There are
no dollar amounts currently drawn under the facility.
The amended facility, which will be primarily secured by a first charge
against the LaRonde Mine, will be provided by a syndicate of international
banks including Scotia Capital, NM Rothschild & Sons Limited, Societe
Generale, National Bank of Canada and The Toronto-Dominion Bank. The
definitive documentation of the amendment is expected to be finalized within
the next four to eight weeks.
Gold and Byproduct Metal Production to be Essentially Unchanged in 2005
A summary of the estimated metal production and cash operating costs
together with the material assumptions used in the Company's estimates for
2005 follows:
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Ore processed (000's tons) 2,911
Daily throughput rate (tons) 7,975
Grades:
Gold (oz./t) 0.11
Silver (oz./t) 2.28
Zinc (%) 3.89
Copper (%) 0.44
Payable metal production:
Gold (ozs.) 280,000
Silver (000's ozs.) 5,500
Zinc (000's lbs.) 160,000
Copper (000's lbs.) 18,000
Minesite operating costs (C$/ton) 48-50
Total cash operating costs ($/oz.) 135-145
Assumptions:
Gold ($/oz.) 375
Silver ($/oz.) 6.00
Zinc ($/lb.) 0.45
Copper ($/lb.) 1.15
C$/US$ exchange rate 1.27
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LaRonde's total cash operating cost guidance is based on byproduct metal
price assumptions that are well below prices realized to date in 2004. If
current metal prices and exchange rates were used, total cash operating costs
would be in the range of $100 per ounce.
The estimated sensitivity of LaRonde's 2005 total cash operating costs to
a 10% change in the metal prices and exchange rates assumptions above follows:
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Change in variable Impact on total cash operating costs ($/oz.)
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C$/US$ 39
Zinc 17
Silver 11
Copper 6
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A summary of the Company's projected exploration and capital expenditures
in 2005 follows (thousands):
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Project Capitalized Expensed Total
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LaRonde I sustaining $14,100 $14,100
LaRonde II related projects 12,700 12,700
Lapa underground program 12,100 12,100
Goldex bulk sample & engineering 1,500 1,500
Bousquet/Ellison drilling 1,600 1,600
Grassroots exploration(x) 4,800 4,800
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$42,000 $4,800 $46,800
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(x) does not include Agnico-Eagle's projected $2.4 million share of
grassroots exploration conducted by exploration affiliates, which
these companies will fund out of their own cash reserves. However,
Agnico-Eagle must expense its share for accounting purposes.
The Company also announced that the employment of Barry Landen, the
Vice-President, Corporate Affairs of the Company, was terminated today.
Forward Looking Statements
The information in this press release has been prepared as at December 7,
2004. 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. When used in this document, the
words "anticipate", "expect", "estimate," "forecast," "planned" and similar
expressions are intended to identify forward-looking statements. Such
statements reflect the Company's views at the time with respect to future
events and are subject to certain risks, uncertainties and assumptions. Many
factors could cause the actual results to be materially different from those
expressed or implied by such forward-looking statements, including, among
others, those which are discussed under the heading "Risk Factors" in the
Company's Annual Information Form and Annual Report on Form 20-F for the year
ended December 31, 2003. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements.
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 western 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 25 consecutive years.
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SOURCE Agnico-Eagle Mines Limited
CONTACT: David Garofalo, V.P. Finance & CFO, Agnico-Eagle Mines Limited,
(416) 947-1212/
(AGE. AEM)
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