Analyst Actions: Agnico-Eagle Mines Ests Revised At Credit Suisse
Big beat on Q3 production and costs: "AEM produced 287kozs at $556/oz vs. Credit Suisse est. of 236kozs at $656/oz."
AEM raises FY12 production and lowers cost guidance, but 2013 production guidance maintained: "2012 production guidance was raised to 1.025Mozs (from 975kozs) and cost guidance lowered to $660/oz (from $690/oz). AEM produced 807kozs YTD and is well on track to achieve the revised guidance. We now forecast 1.046Mozs FY12 production (from 1Mozs). 2013FY guidance was maintained at 990kozs, as the Meadowbank mill outperformance is expected to continue, offsetting congestion and heat issues at LaRonde and a leach ore movement at Creston."
Meadowbank drives the beat, mill is now operating at +10ktpd: "Meadowbank produced 111kozs at $734/oz vs. CS at 76kozs and $924/oz with production and cost improvement largely due to the optimization of the permanent secondary crushing unit, reduced dilution and better than expected grades in the higher grade Goose North pit. Throughput is expected to remain +10ktpd in 2013."
Likely to miss guidance: "LaRonde now likely less than the 220kozs 2013FY prior guidance, due to continued heat/vent issues and development work. Ventilation expansion is scheduled for Q4/13 and AEM expects that development will catch up to allow LaRonde to ramp to ~320kozspa by 2015."
Creston Mascota suspended until Q2/13: "On Sept. 30th, a movement of leached ore on the Creston Phase 1 leach pad occurred. Ramp-up of production at Creston will resume in Q2/13 (-12kozs in Q4/12 & Q1/13)."
Estimates revised: "FY12/13 EPS revised to $2.16/$2.66 (from $1.89/$2.75) to reflect operational changes."
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