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| MD&A AT-a-glance |
This MD&A At-a-Glance highlights some of the more significant and informative items
that appear in the Management's Discussion and Analysis. For a complete summary of
Agnico-Eagle's strategies, business environment, performance, risk and other material
information, please refer to the full MD&A in the Form 20-F. |
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2005 Highlights |
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Gold production of 241,807 ounces • Record proven and probable gold reserves of 10.4 million ounces Record low full-year and fourth-quarter total cash costs per ounce of $43 and minus $22 respectively • Earnings of $37 million, or $0.42 per share, and record cash provided by operating activities of $83 million • Acquisition of the Suurikuusikko property in Finland • Start of construction of a gold mine at the Goldex property in northwestern Quebec, and shaft sinking at the neighbouring Lapa property
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| Key Performance Drivers |
| Driver |
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2005 Performance |
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Spot price
of gold |
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Gold prices reached 25-year highs during the year; near-term peak at $575 per ounce in mid-February 2006 |
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Spot prices
of silver, zinc
and copper |
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Silver prices rose throughout the year, breaking $9 per ounce in December and $10 per ounce in March 2006 |
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Copper and zinc prices continued to strengthen throughout the year with current prices near all time highs |
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C$/US$
exchange rate |
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Company benefited from its currency hedges which, combined with the natural hedge of higher byproduct prices, helped control costs at LaRonde |
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| Production volumes |
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Ore production of 2.7 million tonnes, or a daily average of 7,300 tonnes, was only slightly lower than the record 2004 level |
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Gold production decreased to 241,807 ounces, down 11% from 2004, primarily due to lower than expected ore recovery in several stopes, and the mining of additional, lower grade zinc mineralization in the hangingwall which is economic at current prices |
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| Production costs |
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Total cash costs per ounce of gold decreased to $43 from $56 in 2004 and $269 in 2003, primarily as a result of higher byproduct revenue and strong ore production |
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