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Agnico-Eagle is on track to bring five new mines into production, extend
the mine life of LaRonde, and accelerate gold reserve growth.
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LaRonde
Quebec, canada
The LaRonde mine is our consistent engine of earnings and cash flow with mine life expected to extend through 2021.
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goldex
quebec, canada
The most advanced project in our pipeline is expected to begin production in April 2008, two months ahead of schedule.
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Kittila
Kittila, finland
With production expected to start in September 2008, Kittila is set to become Europe’s largest producing gold mine.
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lapa
Quebec, canada
The ore extracted from the high-grade Lapa deposit will be processed at the nearby LaRonde facility.
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Pinos Altos
Chihuahua, mexico
Pinos Altos boasts a growing gold and silver resource in a highly prospective precious metals camp. |
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Meadowbank
Nunavut, canada
Meadowbank’s near-term gold production and exploration potential made it an important 2007 acquisition. |
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2007 Highlights |
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Record proven and probable gold reserves of 16.7 million ounces |
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Acquisition of the Meadowbank project in Nunavut, Canada |
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Positive development decision for the Pinos Altos mine |
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Low total cash costs per ounce of minus $365 due in part to byproduct revenues |
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Strong earnings and cash flow contribute to fully-funded growth |
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Key Performance Drivers |
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2006 Performance |
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Spot price
of gold |
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Gold prices reached 27-year highs during the year;
peak of $841.10 per ounce in November |
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Spot prices of silver,
zinc, and copper |
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Silver prices rose throughout the year, reaching $15.82 per ounce in November |
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Copper and zinc prices continued at historically high prices, with copper reaching a yearly high in October and zinc in January 2007 |
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C$/US$
exchange rate |
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The Canadian dollar has weakened since peaking in November. This is a benefit to AEM as the earnings are sensitive to the Canadian dollar which has provided an offset to somewhat lower base metals prices |
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| Production volumes |
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Ore production of 2.7 million tonnes, or a daily average of 7,325 tonnes. The LaRonde mine has operated at essentially steady-state for more than four years |
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| Production costs |
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Total cash cost per ounce of gold was minus $365 from minus $690 in 2006 and $43 in 2005, fluctuating primarily as a result of variable byproduct revenue
Good cost control as minesite costs per tonne rose only 6% in 2007 in an otherwise strongly inflationary environment for the industry
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