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Agnico-Eagle is well financed to bring its new mines into production
and extend the mine life of the LaRonde mine beyond 2020. |
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2006 Highlights |
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Gold production of 245,826 ounces • Record proven and probable gold reserves of 12.5 million ounces • Record low total cash cost per ounce of minus $690 • record earnings of $161 million, or $1.40 per share, and record cash provided by operating activities of $226 million • Acquisition of the pinos altos property in Mexico • Start of construction for the extension of the LaRonde mine life in northwestern Quebec, and at the Kittila mine in Finnish Lapland |
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| Key Performance Drivers |
| Driver |
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2006 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 $725 per ounce in mid-May 2006 |
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Spot prices of silver,
zinc, and copper |
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Silver prices rose throughout the year, reaching almost $14 per ounce in May 2006 |
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Copper and zinc prices continued at historically high prices, with copper reaching a record high in May,
and zinc in December |
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C$/US$
exchange rate |
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The Canadian dollar has weakened since peaking in June. This is a benefit to AEM as the earnings are sensitive to the Canadian dollar |
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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. The LaRonde mine has operated at
steady state for more than three years |
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Gold production increased to 245,826 ounces, up 2% from 2005, primarily due to higher mill recoveries
following optimization efforts |
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| Production costs |
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Total cash cost per ounce of gold decreased to minus $690 from $43 in 2005 and $56 in 2004, primarily as
a result of higher byproduct revenue |
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