Agnico-Eagle loss due to mine hoist

Mechanical difficulties at Agnico- Eagle Mines’ (TSE) Telbel mine near Joutel, Que., continues to have an impact on the company’s bottom line.

As a result of lower gold production at the operation, Agnico-Eagle reported a third quarter net loss of $0.4 million or 3 per share compared to net income of $1.9 million or 13 per share in the third quarter of 1987.

The company also reported a $1.7 million or 12 per share loss for the nine months ended Sept 30 compared to net income of $7 million or 50 per share for the same period last year. Nine-month revenues decreased to $34 million from $37.3 million during the same period in 1987.

The decline in third-quarter gold production to 17,994 oz from 22,381 oz last year is a function of lower amounts of ore being treated due to mechanical difficulties and a reduction in hoisting capacity at the Telbel shaft, Agnico said.

However repair work is expected to increase hoisting capacity and throughput will eventually return to 1,400 to 1,500 tons per day.

On the exploration front, Agnico and Hecla Mining Co. of Coeur d’Alene, Idaho, are negotiating to form a new company which will look for precio us metals in North America.

After pouring its first gold bar on June 21, 32%-owned Dumagami Mines (TSE) had produced 9,600 oz gold by Sept 30. The mine is expected to operate at a rate of 5,300 oz per month in 1989.

As reported (N.M., Nov 14/88), Agnico recently realized $42.4 million in gross proceeds from the sale of its real estate division.