(All dollar amounts expressed in U.S. dollars unless otherwise noted)
Agnico-Eagle Reports Strong Quarterly Cash Flows And Earnings; 23% Increase In Gold Reserves With Successful
Offer For Cumberland Resources
Toronto- April 26, 2007 - Agnico-Eagle Mines Limited (TSX: AEM; NYSE: AEM) today reported first quarter earnings of $24.9 million, or $0.21 per share and first quarter cash provided by operating activities of $56.1 million. This compares to net earnings of $37.2 million, or $0.35 per share, and cash provided by operating activities of $19.7 million, in the first quarter of 2006.
Although cash provided by operating activities saw a significant increase of $36.4 million in the first quarter of 2007, net earnings were lower than in the first quarter of 2006, which included an after tax gain of $15.4 million, or $0.15 per share, from the sale of marketable securities.
The first quarter 2007 earnings were also adversely affected by a non-cash derivative loss of $6.1 million, or $0.05 per share. This loss was due to the derivative position put in place to effectively extinguish the gold hedge position held by Cumberland Resources Ltd.
With a 184% increase in operating cash flows in the first quarter of 2007, period over period, the Company's financial position remains strong with cash and cash equivalents of $427.6 million at March 31, 2007. The cash position was drawn down from $458.6 million at December 31, 2006, primarily to pay the annual dividend and expenditures related to the Cumberland transaction.
Payable gold production in the first quarter of 2007 was 58,588 ounces at total cash costs per ounce of minus $332. This compares with payable gold production of 64,235 ounces at total cash costs per ounce of minus $241 in the first quarter of 2006.
Payable gold production for the first quarter of 2007 was slightly lower than the same period in the prior year largely due to an expected reduction in gold grade (down 9% period over period) during the quarter. The reduction in total cash costs per ounce in the first quarter of 2007 is mainly due to higher byproduct metals prices prevailing during the period.
2007 highlights to date include:
. Record gold reserves of 15.4 million ounces, an increase of 23% over the December 2006 level, as a result of the successful acquisition of Cumberland
. A 184% increase in cash provided by operating activities to $56.1 million
. Strong earnings of $24.9 million, or $0.21 per share
. Low total cash costs per ounce at LaRonde of minus $332
. A record 26 consecutive months without a lost time accident underground at LaRonde
"With another strong quarter of cash flows and earnings, and the recent success of our offer for Cumberland, Agnico-Eagle remains solidly positioned to deliver significant growth in gold output and gold reserves, while still maintaining our low political risk profile, strong balance sheet and significant exploration upside." said Sean Boyd, Vice-Chairman and Chief Executive Officer. "Over the next 24 months, we anticipate gold reserves at our existing projects to grow from the current 15.4 million ounces to 18 to 20 million ounces. By 2010, we anticipate our annual gold production to expand by five times to over 1.2 million ounces, with five new gold mines in production." added Mr. Boyd.
Shareholders' Meeting Tomorrow
The Company will host its Annual and Special Meeting of Shareholders on Friday, April 27, 2007 at 11:00 a.m. (E.S.T.) at the King Edward Hotel, 37 King St. E., in Toronto, Canada. Management will review the Company's financial results for the first quarter 2007 and provide an update of its exploration and development activities.
Via Telephone:
To listen on the telephone, please dial (416) 644-3414 or 1 (800) 733-7571 toll free, at least five minutes before the scheduled start of the presentation.
Via Webcast:
Additionally, a live audio webcast of the presentation will be available on the Company's website homepage at www.agnico-eagle.com. The webcast along with presentation slides will be archived for 180 days on the website.
Replay archive:
The access phone number for the archived audio replay is 1 (877) 289-8525, passcode 21225741#. It will be available from Friday, April 27, 2007 at 1:00 pm until Saturday, May 5, 2007 at 11:59pm.
TO VIEW FULL PRESS RELEASE IN PDF FORMAT PLEASE CLICK HERE.
For further information:
David Smith; VP, Investor Relations
(416) 947-1212
Renmark Financial Communications Inc.
John Boidman: jboidman@renmarkfinancial.com
Christina Lalli: clalli@renmarkfinancial.com
Media: Eva Jura: ejura@renmarkfinancial.com
Tel.: (514) 939-3989
Fax: (514) 939-3717
