TORONTO — The chief executive of Agnico-Eagle Mines Ltd. says the mid-tier miner is poised for strong growth this year as more projects come on stream alongside an anticipated return to climbing gold prices.
Sean Boyd told shareholders Friday that the company is on track with its plan to increase production and reserves as four of its mines begin production.
The company poured its first gold at the Goldex mine this week, a mine he says is going to be a big money-maker.
The deposits have the ability to continue to grow, Mr. Boyd told the company's annual meeting in Toronto.
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Agnico-Eagle has operations in Quebec, Finland, the U.S. and Mexico. Its LaRonde Mine in northwestern Quebec holds Canada's largest gold deposit by reserves.
Boyd also said he wasn't worried about gold prices, which have made some investors nervous after falling off from a record of $1,000 (U.S.) to trade around $880.
Echoing other gold company CEOs, he said strong demand for gold, combined with limited supply and global economic uncertainty, are expected to push gold higher again in the future.
His comments came after Agnico-Eagle posted a first-quarter profit of $28.9-million, 20 cents per share, up from 24.9 million a year ago, also 20 cents per share, as revenue grew 18 per cent.
The earnings included a non-cash foreign currency translation gain of $8.9-million.
Quarterly revenue totalled $119.1-million, up from $100.7-million.
Payable gold production in the first quarter was 50,892 ounces at total cash costs per ounce of minus $399 compared with 58,588 ounces in the first quarter of 2007 due to lower grade mining in parts of the orebody at Goldex.
Shares in Agnico-Eagle were down $1.90 at $65.55 in midday trading at the Toronto Stock Exchange.
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