Agnico earnings are up sharply

A sharp improvement in the second quarter operations of Agnico- Eagle Mines has resulted in a 3- fold increase in this company’s half year net to $5.1 million or 37 cents per share, compared to $1.5 million or 11 cents per share in the same period last year. The actual cash generated was up 80%.

(This should come as no surprise to readers of this paper, inasmuch as we have been emphasizing the turnaround in grade at its prize Telbel mine — a trend that will almost certainly continue and accelerate in the months ahead.)

While a shortage of miners somewhat delayed production start-up of the new sub-level retreat stopes at Telbel, July output was 7,500 oz with August expected to see 8,200 ozs.

Production for the second half is forecast to achieve an annualized target of close to 100,000 oz which will result in lower production costs, President Paul Penna states in the company’s interim report. Whereas mill feed grade for the first six months averaged only 0.l42 oz per ton, grade of the 890,000 tons in the new stopes now coming into full production is expected to average at least 0.25 oz. Silver rising too

With the new milling complex at the company’s silver division at Cobalt now in full operation, silver production in the second half is forecasted at 400,000 to 500,000 oz.

“At current prices for silver of close to $10(C), the silver division should make a significant contribution to consolidated revenue and operating income during the remainder of the current year,” Mr Penna says.

The report deals in some length with developments at the Langis mine property in the New Liskeard area, where a new 1,200-ft production shaft is being put down 3,400 ft southeast of the Langis No 6 shaft. This is part of a major $6.5- million program to explore and develop a brand new silver zone that has been traced for a length of at least 3,000 ft and with a vertical thickness of some 850 ft.

Upon completion of this shaft a 2,000-ft long crosscut will be driven through this new zone at a depth of 700 ft from surface. This project will take up to three years to complete.