Agnico-Eagle provides 2004 production estimates
November 20 2003 - 7:00AM
PR Newswire (US)
Agnico-Eagle provides 2004 production estimates Stock Symbols: AEM
(NYSE) AGE (TSX) TORONTO, Nov. 20 /PRNewswire-FirstCall/ --
Agnico-Eagle Mines Limited is today hosting research analysts and
investors on a tour of the LaRonde minesite. The visit will focus
on operations and will include an underground and mill tour. A
regional exploration and development update will also be provided
regarding the Company's projects and programs on the Cadillac-
Bousquet Belt. The Company has completed its mine planning process
for 2004. As previously disclosed, the new mine plan was devised
with an annual gold production target of 300,000 ounces. A summary
of the estimated metal production and cash operating costs together
with the material assumptions used in the Company's estimates for
2004 follows:
------------------------------------------------------------- Ore
processed (000's tons) 2,555 Daily throughput rate (tons) 7,000
Grades: Gold (oz./t) 0.13 Silver (oz./t) 2.50 Zinc (%) 3.40 Copper
(%) 0.60 Payable metal production: Gold (ozs.) 300,000 Silver
(000's ozs.) 4,700 Zinc (000's lbs.) 120,000 Copper (000's lbs.)
24,000 Minesite operating costs (C$/ton) 49-51 Total cash operating
costs ($/oz.) 155-165 Assumptions: Gold ($/oz.) 340 Silver ($/oz.)
5.00 Zinc ($/lb.) 0.40 Copper ($/lb.) 0.85 C$/US$ exchange rate
1.30 -------------------------------------------------------------
The Company undertook a comprehensive review of short-term and
long-term production targets. Based on recent experience, a more
conservative approach to reduce mining risk was taken, which is
still expected to result in strong cash flows and low cash
operating costs. LaRonde's total cash operating costs are expected
to decline significantly in 2004 to a range of $155 to $165 per
ounce, based on the assumptions and estimates above. The decline in
total cash operating unit costs from those estimated for 2003 is
attributable to the elimination of the El Coco royalty (over $50
per ounce in 2003) and higher gold and byproduct metal production
as ore throughput increases to a steady state of 7,000 tons per
day. The estimated sensitivity of LaRonde's 2004 total cash
operating costs to changes in metal prices and exchange rates
follows:
-------------------------------------------------------------------------
Change in variable Impact on total cash operating costs ($/oz.)
-------------------------------------------------------------------------
$0.10 in C$/US$ 25 $0.50/oz. in silver 10 $0.05/lb. in zinc 14
$0.10/lb. in copper 4
-------------------------------------------------------------------------
LaRonde on Track for Fourth Quarter 2003 Production of 70,000 to
75,000 Ounces The proportion of ore from the lower level mining
horizons continued to increase in October to over 70% from 63% in
the third quarter. Gold production was slightly above 24,000 ounces
in October with cash operating costs within the previously
announced range of $210 to $230 per ounce and total cash operating
costs of $240 to $260 per ounce, including the El Coco royalty.
October's gold production was in line with expectations and the
Company expects to achieve its previously disclosed target of
70,000 to 75,000 ounces in the fourth quarter. Regional Program
Plans to be Announced in December The Company intends to provide an
update on its 2004 program for its pipeline of regional projects,
including LaRonde II, Lapa and Goldex, in a separate press release
in December. At that time, the cash dividend for 2004 is also
expected to be set. Forward Looking Statements This news release
contains certain "forward-looking statements" (within the meaning
of the United States Private Securities Litigation Reform Act of
1995) that involve a number of risks and uncertainties. There can
be no assurance that such statements will prove to be accurate;
actual results and future events could differ materially from those
anticipated in such statements. Risks and uncertainties are
disclosed under the heading "Risk Factors" in the Company's Annual
Information Form (AIF) filed with certain Canadian securities
regulators (including the Ontario and Quebec Securities
Commissions) and with the United States Securities and Exchange
Commission (as Form 20-F). 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 southwestern 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 23
consecutive years. DATASOURCE: Agnico-Eagle Mines Limited CONTACT:
Barry Landen, V.P. Corporate Affairs, Agnico-Eagle Mines Limited,
(416) 947-1212
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