Agnico-Eagle reports 2008 results; Record quarterly and annual gold production; Record gold reserves and resources
(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, Feb. 18, 2009 - Agnico-Eagle Mines Limited (TSX: AEM / NYSE: AEM) ("Agnico-Eagle" or the "Company") today reported quarterly net income of $21.9 million, or $0.15 per share for the fourth quarter of 2008. This result includes a non-cash foreign currency translation gain of $51.5 million, or $0.35 per share, and a tax recovery of $11.1 million, or $0.07 per share, offset partly by a non-cash writedown of investments of $39.2 million, or $0.27 per share. In the fourth quarter of 2007, the Company reported net income of $65.2 million, or $0.46 per share.
Fourth quarter 2008 cash used by operating activities was $46.4 million (net of a change in working capital of minus $52.1 million), down from cash provided by operating activities of $48.8 million in the fourth quarter of 2007, primarily due to lower metal prices and working capital movements, offset partly by higher gold production.
"Compared to the fourth quarter last year, gold production increased 48% as LaRonde continued its steady performance and the new Goldex mine achieved its design capacity in December", said Sean Boyd, Vice-Chairman and Chief Executive Officer. "In addition, with our gold reserves at record levels we are well positioned to continue to increase gold output with 2009 production expected to rise more than 100% from the 2008 level," added Mr. Boyd.
Fourth quarter 2008 highlights include:
- Record Production - record gold production of 89,360 ounces in the fourth quarter contributing to record annual gold production of 276,762 ounces
- Good Cost Control - operating cost per tonne targets achieved at both LaRonde and Goldex
- Record gold reserves - gold reserves rise 8%, or 1.4 million ounces net of production, to 18.1 million ounces
- Record gold resources - gold resources rise to record level, even after conversion of 1.7 million ounces to reserves in 2008
- Gold Production Growth Accelerating - Goldex achieves design capacity. Kittila in the commissioning phase and pouring gold. Lapa and Pinos Altos on track for 2009 openings. Meadowbank set to open in first quarter of 2010
THIS PRESS RELEASE CONTAINS TABLES. CLICK HERE TO VIEW ORIGINAL VERSION OF THIS DOCUMENT.
For further information:
VP, Investor Relations
Renmark Financial Communications Inc.
John Boidman : email@example.com
Jen Power : firstname.lastname@example.org
Media - Vanessa Napoli : email@example.com
Montreal - Tel.: 514 939-3989 / Fax: 514 939-3717
Toronto - Tel.: 416 644-2020 / Fax: 416 644-2021