Agnico Eagle Mines Limited
) has announced updated mineral reserves and resources for its
Canadian Malartic mine. Agnico Eagle and Yamana Gold Inc. (
) each own a 50% interest in the mine as part of the joint
acquisition of Osisko Mining Corporation that was closed on Jun 16,
Proven and probable in-pit mineral reserves from the mine were 8.9
million ounces of gold as of Jun 15, 2014. The total indicated and
measured resources including reserves as of the same date totaled
10.8 million ounces. Inferred resources amounted to 1.14 million
The addition of the 5% royalty payable to Osisko Gold Royalties
Ltd. raised the highest cut-off grade to around 0.35 grams per ton
(g/t) gold from 0.33 g/t gold, representing a decrease of roughly
60,000 ounces to the reserve base from previous estimates published
Moreover, a $100 per ounce fall in the gold price would reduce the
reserves by around 3.3% or 310,000 ounces.
While calculating the mineral reserves and resources estimates at
the Canadian Malartic mine, the assumptions were $1,300 per ounce
gold , a cut-off grade between 0.28 g/t and 0.35 g/t gold
(depending on the deposit) and a C$/US$ exchange rate of 1.10.
Recently, Agnico Eagle released its results for second-quarter
2014. The company's adjusted earnings (barring one-time items other
than stock-option expenses) of 25 cents per share for the quarter
missed the Zacks Consensus Estimate of 29 cents per share.
The company logged a net income of $37.7 million (or 20 cents
per share) on a reported basis in the second quarter, which
compares favorably with a loss of $24.4 million (or 14 cents a
share) recorded in the year-ago quarter. The bottom-line
improvement was aided by significantly higher gold production that
offset a decline in realized metal prices.
Agnico Eagle registered revenues of $437.8 million in the
quarter, up 30.1% from $336.4 million in the year-ago quarter. The
results however missed the Zacks Consensus Estimate of $458
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Other companies in the gold mining industry worth considering
are NovaGold Resources Inc. (
) and Harmony Gold Mining Company Limited (
). Both hold a Zacks Rank #2 (Buy).
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