Output up, costs down at Agnico

Lower costs and increased production pushed Agnico-Eagle Mines (TSE) well into the black during the first six months of the year. The gold miner reported a profit of $2.2 million (8 cents per share) compared with a loss of $3.7 million (13 cents per share) during the same period last year.

Agnico’s average cash operating cost fell by 22%, from US$306 to US$239, while gold production rose to 85,386 oz. from 79,618 oz. a year earlier. The LaRonde mine in northwestern Quebec performed particularly well. During the second quarter, gold production was 25% higher than the previous year while costs were 22% lower at US$187 per oz.

Joutel, where Agnico cancelled plans to phase out production in early 1993 after an exploration hole 1,600 ft. from the main shaft returned a high-grade intersection, was also profitable.