A $36.9 million writedown on its mining properties and investments in other companies led to a $47.7 million ($1.82 per share) loss for Agnico-Eagle Mines (TSE) in 1990. For the fourth quarter, the loss amounted to $43.1 million ($1.63 per share) compared with $10.1 million (66 cents per share) in 1989.
The writedown included $14 million on mining properties at the company’s Joutel division in northwestern Quebec, where difficult ground conditions and a shortage of developed areas have restricted production growth.
Despite a milling and refining complex capable of processing 1,800 tons per day, the daily mining rate at Joutel is now restricted to 1,000 tons. Agnico does not expect an improvement unless additional sources of ore can be developed, and has consequently stepped up exploration activities in and around the mine.
Mining operations at the Eagle West zone, discovered last fall, will begin this summer, the company says. Agnico expects gold production from the area to reach 27,000 oz. in 1991.
Although increased production at the LaRonde mine near Val d’Or, Que., led to total gold production of almost 162,000 last year, the increase was offset by depreciation and amortization charges related to the acquisition of the mine, and lower gold prices.
Agnico has embarked on an exploration development program at LaRonde in an attempt to increase proven ore reserves.
Other writedowns included a $4.7 million reclamation provision, a $4.1 million writeoff on exploration properties and $7.8 million writeoff of Agnico’s long-term investments in other companies and a $4 million charge against marketable securities. Agnico-Eagle Mines (TSE) 3 months ended Dec. 31
1990 1989 Revenue $15,200 $9,100 Net loss 43,100 13,900 per share 1.62 0.91 12 months ended Dec. 31 Revenue $71,574 $37,000 Net loss 47,687 10,100 per share 1.82 0.66
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