During the second quarter, Agnico-Eagle recorded a net loss of US$2.9 million (or 5 cents per share) on mining revenue of US$7.2 million, compared with a US$2-million loss (4 cents per share) on revenue of US$11.2 million during the corresponding period last year.
Second-quarter gold production totalled only 25,794 oz., down from 40,580 oz. a year earlier, as head grades fell to 0.15 oz. from 0.22 oz. per ton.
The company has been paying a heavy price for its anti-gold-hedging policy, realizing a gold price of US$277 per oz. during the second quarter, down from US$300 per oz. in the corresponding period last year.
Agnico-Eagle attributes much of the reduced gold production to the final mining of ore zones situated near shafts 1 and 2. Already, production is shifting to development ore from the new, deeper shaft 3.
Cash operating costs, net of byproduct credits, were US$241 per oz. gold, compared with US$213 per oz. in the second quarter of 1998.
Agnico-Eagle also produced 979,150 lbs. copper and 1.8 million lbs. zinc during the recent quarter, compared with 1.5 million lbs. copper and no zinc a year earlier.
On June 30, the company’s cash balance, excluding bullion on hand, totalled US$44 million.
Agnico-Eagle is continuing an ambitious exploration and development program that will see Laronde’s production climb to 5,000 tons per day by 2003.
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