(All amounts expressed in U.S. dollars unless otherwise noted)
Stock Symbol: AEM (NYSE and TSX)
TORONTO, Dec. 14 /PRNewswire-FirstCall/ - Agnico-Eagle Mines Limited
today announced its production guidance for 2006. Included in this guidance is
the target for total cash costs from its world-class LaRonde mine. The Company
is targeting $50 per ounce, a level which would again rank Agnico-Eagle among
the lowest cost producers in the gold industry. Overall, payable metals
production is likely to be at similar levels to those in 2005.
"While we are budgeting for cash costs of $50 per ounce of gold in 2006,
at current byproduct prices and exchange rates, the actual total cash costs
have the potential to be significantly lower," said Sean Boyd, Vice Chairman
and Chief Executive Officer. "Agnico-Eagle's revenues, earnings, and cash
flows enjoy significant leverage to rising metals prices. This leverage, and
our low cost production base, puts us in an excellent position to finance our
growth pipeline of gold projects," added Mr. Boyd.
A summary of the estimated metal production and associated costs,
together with the material assumptions used in the Company's estimates for
2006, follows:
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Ore processed (000's tons) 2,900
Grades:
Gold (oz./t) 0.10
Silver (oz./t) 2.48
Zinc (%) 3.82
Copper (%) 0.47
Payable metal production:
Gold (ozs.) 250,000
Silver (000's ozs.) 5,700
Zinc (000's lbs.) 160,000
Copper (000's lbs.) 20,000
Minesite operating costs (C$/ton) 52
Total cash costs ($/oz.) 50
By product and currency assumptions:
Silver ($/oz.) 7.00
Zinc ($/lb.) 0.65
Copper ($/lb.) 1.50
C$/US$ exchange rate 1.20
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The estimated sensitivity of LaRonde's 2006 total cash costs per ounce 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 costs ($/oz.)
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C$/US$ 50
Zinc 20
Silver 15
Copper 10
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A summary of the Company's projected exploration and capital expenditures
in 2006 follows (thousands):
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Project Capitalized Expensed Total
------------------------------------------------------------------------
LaRonde I sustaining $10,000 $10,000
LaRonde II related projects 13,000 13,000
Lapa underground program 12,000 12,000
Goldex construction 82,000 82,000
Exploration & corporate
development(x) 12,000 12,000
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$117,000 $12,000 $129,000
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(x) does not include Agnico-Eagle's projected $3 million share of
exploration conducted by associated exploration companies, which
these companies will fund out of their own cash reserves. However,
Agnico-Eagle must expense its share for accounting purposes.
Dividend Paid For 26 Consecutive Years
The board of directors of Agnico-Eagle has declared an annual dividend of
$0.03 per share following a successful year in 2005, representing the 26th
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 23,
2006 to shareholders of record March 2, 2006. The dividend rate is unchanged
from last year as management and the Board of Directors have decided to
conserve cash to fund the Company's production and reserve growth objectives.
Shareholders Can Reinvest Dividends in Shares at a Discount
Under the Company's Dividend Reinvestment Plan, shareholders will have
the opportunity to reinvest their dividends at no commission in shares of
Agnico-Eagle, at 95% of the Average Market Price. Individual shareholders can
also make optional cash payments of up to $20,000 to purchase additional
shares, commission-free, at the same price. Shareholders can obtain details of
the Plan from the Company or visit its website at www.agnico-eagle.com.
Significant Finnish Mining Expertise Added to the Board of Directors
The Board of Directors is pleased to announce the addition to the Board
of Mr. Pertti Voutilainen, M.Sc., M.Eng., effective immediately. Mr.
Voutilainen is a mining industry veteran, most recently the Chairman of the
Board of Riddarhyttan Resources AB. Previously, Mr. Voutilainen was Chairman
of the Board and CEO for Kansallis Banking Group and President after its
merger with Union Bank of Finland. He was also the CEO of Outokumpu Corp.,
Finland's largest mining and metals company.
"Mr. Voutilainen is a tremendous addition to our Board of Directors,"
said James D. Nasso, Chairman of the Board. "He will be an invaluable resource
to us as we bring the Suurikuusikko project through the feasibility stage and
will undoubtedly make an important contribution to the Company as we move
towards achieving our objective of tripling gold production and doubling gold
reserves by 2009."
Management Strengthened to Achieve Growth Objectives
The Board of Directors is pleased to announce several new appointments
among its senior management team.
Sean Boyd has been appointed Vice Chairman and Chief Executive Officer,
while Ebe Scherkus has been appointed President and Chief Operating Officer.
Both Sean and Ebe have been with Agnico-Eagle for twenty years. They have been
instrumental in building the Company, and laying the foundation for its future
growth.
"Agnico-Eagle will continue to rely heavily on the leadership and
experience of Sean and Ebe as we move forward with our objective of tripling
gold production and doubling reserves from existing projects by 2009" said Mr.
Nasso.
Additionally, Jean Robitaille has been appointed to the position of Vice
President, Metallurgy and Marketing. Jean has been with Agnico-Eagle for 18
years and was most recently General Manager, Metallurgy and Marketing. Jean's
appointment reflects his increasing responsibilities in the areas of
metallurgy, processing, plant construction, and concentrate marketing. "Jean's
experience in plant design and construction will be important in the
implementation and execution of our growth strategy" said Mr. Scherkus. Jean
will continue to report to Mr. Scherkus.
Forward Looking Statements
The information in this press release has been prepared as at December
14, 2005. 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 most recently filed Annual Information Form and Annual Report on
Form 20-F. 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 Quebec and exploration and development activities in Canada,
Finland, the United States and Mexico. Agnico-Eagle's LaRonde Mine 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 26 consecutive years.
SOURCE Agnico-Eagle Mines Limited
CONTACT: David Smith; Director, Investor Relations, (416) 947-1212/
http://www.prnewswire.com
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