Stock Symbol: AEM (NYSE and TSX) TORONTO, Dec. 14
/PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited is pleased to
announce today that its Board has approved the payment of a
dividend of $0.12 per common share, quadruple the previous annual
rate. Agnico-Eagle has now declared a dividend to its shareholders
for 27 consecutive years. The dividend will be paid on January 29,
2007 to shareholders of record as of January 15, 2007. Agnico-Eagle
remains fully financed for its gold growth program, which is
expected to see the startup of five new gold projects, beginning in
2008. "Although we have embarked on a large capital investment
program to grow our business, our financial position has never been
stronger," said Sean Boyd, Vice Chairman and Chief Executive
Officer. "We continue to generate very strong cash flows, which has
put us in a position to increase our long-standing dividend. It is
our goal to increase our dividend as our business grows" added Mr.
Boyd. The Company today also announced its production guidance for
2007. Gold production is expected to total approximately 240,000
ounces in 2007, essentially unchanged from LaRonde's annual gold
output in each of the past two years. Minesite costs per tonne are
expected to rise slightly to approximately C$63 per tonne, from
C$61 per tonne in 2006, due in part to industry wide cost pressures
for inputs such as fuel, mill reagents, steel, and cement. However,
this is generally a lower rate of increase than is being realized
in the gold mining industry as a whole. This reflects the success
that the employees at LaRonde have had in controlling costs via
economies of scale, efficiency and optimization efforts, and stable
energy costs in Quebec. Byproduct production is also expected to be
at similar levels to recent years, as presented in the accompanying
table. The Company is targeting total cash costs of minus $80 per
ounce, based on conservative byproduct metals price assumptions, a
level which would again rank Agnico-Eagle among the lowest cost
producers in the gold industry. Based on current byproduct prices,
the estimated total cash costs in 2007 would be significantly
lower, as demonstrated in 2006. See "Note to Investors Regarding
the Use of Non-GAAP Financial Measures" below, with respect to
minesite costs per tonne and total cash costs per ounce. A summary
of the estimated metal production and associated costs, together
with the material assumptions used in the Company's estimates for
2007 is set out below:
------------------------------------------------------- Ore
processed (000's tonnes) 2,600 Grades: Gold (grams/tonne) 3.12
Silver (grams/tonne) 74.17 Zinc (%) 3.79 Copper (%) 0.41 Payable
metal production: Gold (ozs.) 240,000 Silver (000's ozs.) 4,700
Zinc (tonnes) 76,000 Copper (tonnes) 8,700 Minesite operating costs
(C$/tonne) 63 Total cash costs ($/oz.) (80) Byproduct and currency
assumptions: Silver ($/oz.) 9.00 Zinc ($/tonne) 2,300 Copper
($/tonne) 4,500 C$/US$ 1.15
------------------------------------------------------- The
estimated sensitivity of LaRonde's 2007 total cash costs per ounce
to a 10% change in the metal prices and exchange rates assumptions
above, follows:
------------------------------------------------------- Impact on
total cash costs ($/oz.)
------------------------------------------------------- C$/US$ 65
Zinc 45 Silver 20 Copper 15
------------------------------------------------------- A summary
of the Company's projected exploration and capital expenditures in
2007, follows:
------------------------------------------------------- Project
Expenditures ($000's) Capitalized Expensed
------------------------------------------------------- LaRonde I
sustaining $27,500 LaRonde II 64,000 Lapa 37,500 Goldex 91,000
Kittila 96,000 Pinos Altos 20,000 5,500 Grassroots exploration
13,000 Corporate development 4,500
------------------------------------------------------- $336,000
$23,000 ------------------------------------------------------- The
capital expenditure budget for 2007 includes approximately $30
million that was expected to be spent at Goldex in 2006 and is now
deferred into 2007. Also, approximately $30 million that was
expected to be spent at Kittila in 2008 has been accelerated to
2007. Neither of these re-allocations are expected to affect the
overall schedule or the total cost of the projects. Shareholders
Can Reinvest Dividends in Shares at a Discount Under the Company's
Dividend Reinvestment Plan, shareholders will have the opportunity
to reinvest their dividends, commission-free, in shares of
Agnico-Eagle, at 95% of the Average Market Price. Individual
shareholders can also make optional cash payments of up to $20,000
to purchase additional shares, commission-free, at the same price.
Shareholders can obtain details of the Plan from the Company or via
the internet by copying the following link into a browser.
http://www.agnico-eagle.com/Theme/Agnico/files/pdf/DividendReinvestmentPlan.pdf
Management Strengthened to Achieve Growth Objectives The Board of
Directors is pleased to announce several new promotions among its
senior management team: Mr. Donald Allan, Senior Vice President,
Corporate Development (previously Vice President, Corporate
Development); Mr. Alain Blackburn, Senior Vice President,
Exploration (previously Vice President, Exploration); Mr. David
Garofalo, Senior Vice President, Finance and Chief Financial
Officer (previously Vice President, Finance and Chief Financial
Officer); and Mr. Greg Laing, General Counsel, Senior Vice
President, Legal and Corporate Secretary (previously General
Counsel Vice President, Legal and Corporate Secretary). In
addition, Mr. David Smith has been appointed Vice President,
Investor Relations (previously Director, Investor Relations). Mr.
Claudio Mancuso has been appointed Treasurer (previously
Controller), and Mr. Picklu Datta has been appointed Controller
(previously Manager, Internal Audit). All three of these positions
will report to Mr. Garofalo. "These promotions reflect the
contributions made by all of these individuals to the success of
Agnico-Eagle and they help position the Company for further success
as we build new gold mines, expand our gold output and increase our
gold reserves." said Sean Boyd, Vice-Chairman and Chief Executive
Officer. All of these promotions are effective December 31, 2006.
Agnico-Eagle Renews Shelf Prospectus The Company is required to
maintain a shelf registration of the common shares issuable on the
exercise of warrants issued in the United States under its November
2002 warrant indenture. The Company is in the process of renewing
its short form base shelf prospectus with the securities
commissions in each of the provinces of Canada and shelf
registration statement with the United States Securities and
Exchange Commission. Under this prospectus, Agnico-Eagle may from
time to time offer by way of shelf prospectus supplement debt
securities, common shares or warrants to purchase debt securities
or common shares in the aggregate amount of up to $500,000,000. The
Company intends to file shortly a prospectus supplement with
respect to the exercise of outstanding warrants. Each whole warrant
entitles the holder to purchase one common share at a price of $19
per common share at any time prior to November 14, 2007. The
warrants trade in U.S. dollars on both the Toronto Stock Exchange,
under the symbol AGE.WT.U, and on the Nasdaq Global Market, under
the symbol AEMLW. Agnico-Eagle has no present intention to offer
securities under the shelf prospectus other than common shares
issuable upon the exercise of the warrants in the United States.
Forward-Looking Statements The information in this press release
has been prepared as at December 14, 2006. Certain statements
contained in this press release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward looking
information under the provisions of Canadian provincial securities
laws. When used in this document, words such as "anticipate",
"expect", "estimate," "forecast," "planned" and similar expressions
are intended to identify forward-looking statements or information.
Such statements and information include without limitation: the
Company's 2007 production guidance, including estimated ore grades,
metal production, minesite costs per tonne, cash costs per ounce
and projected exploration and capital expenditures, including costs
and other estimates upon which such projections are based; the
expected growth of the Company's business; the Company's goal to
increase dividends as its business grows, and other statements and
information regarding anticipated trends with respect to the
Company's operations and exploration. Such statements and
information reflect the Company's views as at the date of this
press release and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements and information. Many factors, known and unknown, could
cause the actual results to be materially different from those
expressed or implied by such forward looking statements and
information. Such risks include, but are not limited to: the
volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, capital
expenditures, and other costs; currency fluctuations; financing of
additional capital requirements; cost of exploration and
development programs; mining risks; risks associated with foreign
operations; risks related to title issues at the Pinos Altos
project; governmental and environmental regulation; the volatility
of the Company's stock price; and risks associated with the
Company's byproduct metal derivative strategies. For a more
detailed discussion of such risks and other factors, see Company's
Annual Information Form and Annual Report on Form 20-F, as amended,
for the year ended December 31, 2005, as well as the Company's
other filings with the Canadian Securities Administrators and the
U.S. Securities and Exchange Commission. The Company does not
intend, and does not assume any obligation, to update these
forward-looking statements and information, except as required by
law. Accordingly, readers are advised not to place undue reliance
on forward-looking statements. Certain of the foregoing statements,
primarily related to projects, are based on preliminary views of
the Company with respect to, among other things, grade, tonnage,
processing, mining methods, capital costs, and location of surface
infrastructure and actual results and final decisions may be
materially different from those currently anticipated. About
Agnico-Eagle Agnico-Eagle is a long established Canadian gold
producer with operations located in Quebec and exploration and
development activities in Canada, Finland, Mexico and the United
States. Agnico-Eagle's LaRonde Mine is Canada's largest gold
deposit in terms of reserves. 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 27 consecutive years. Note
Regarding Certain Measures of Performance This press release
presents estimates of "total cash costs per ounce" and "minesite
cost per tonne" that are not recognized measures under US GAAP.
This data may not be comparable to data presented by other gold
producers. The Company believes that these generally accepted
industry measures are realistic indicators of operating performance
and useful for year over year comparisons. However, both of these
non-GAAP measures should be considered together with other data
prepared in accordance with US GAAP, and these measures, taken by
themselves, are not necessarily indicative of operating costs or
cash flow measures prepared in accordance with US GAAP. The Company
provides a reconciliation of realized total cash costs per ounce
and minesite costs per tonne to the most comparable US GAAP
measures in its annual and interim filings with securities
regulators in Canada and the United States. The estimates presented
herein are based upon the total cash costs per ounce and minesite
cost per tonne that the Company expects to incur to mine gold
during 2006 and 2007 and do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time. It is therefore not practicable to
reconcile these forward-looking non-US GAAP financial measures to
the most comparable US GAAP measure. Note to Investors Regarding
the Use of Non-GAAP Financial Measures This press release presents
estimates of future "total cash cost per ounce" and "minesite cost
per tonne" that are not recognized measures under United States
generally accepted accounting principles ("US GAAP"). This data may
not be comparable to data presented by other gold producers. These
future estimates are based upon the total cash costs per ounce and
minesite costs per tonne that the Company expects to incur to mine
gold at the applicable projects and do not include production costs
attributable to accretion expense and other asset retirement costs,
which will vary over time as each project is developed and mined.
It is therefore not practicable to reconcile these forward-looking
non-GAAP financial measures to the most comparable GAAP measure. A
reconciliation of the Company's total cash cost per ounce and
minesite cost per tonne to the most comparable financial measures
calculated and presented in accordance with US GAAP for the
Company's historical results of operations is set forth in the
Company's Annual Information Form and Annual Report on Form 20-F,
as amended, for the year ended December 31, 2005, as well as the
Company's other filings with the Canadian Securities Administrators
and the U.S. Securities and Exchange Commission. DATASOURCE:
Agnico-Eagle Mines Limited CONTACT: David Smith, Director, Investor
Relations, (416) 947-1212
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