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Agnico-Eagle Mines (T.AEM) eyes investment opportunities, despite cuts

Stockhouse Editorial
0 Comments| July 24, 2013

Agnico-Eagle Mines Ltd. (TSX: T.AEM, Stock Forum) (NYSE: AEM, Stock Forum) has joined a growing bandwagon of large gold companies, who are cutting spending in the wake of lower gold prices.

Late Wednesday, the Toronto-based company said in a press release it will cut capital spending and other costs by about $50 million during the remainder of 2013.

The company will also shave another $200 million from its capital expenditures at existing mines and projects next year, from the previously planned $600 million.

The announcement comes after Agnico-Eagle reported a loss of $24.4 million or 14 cents per share in the second quarter, largely due to a maintenance shutdown at its Kittila mine in northern Finland, which took longer than expected.

That compared to a profit of $43.3 million or 25 cents during the same quarter of last year.

But Agnico-Eagle Chief Executive Officer Sean Boyd said the company is still eyeing new acquisitions after recently buying Yukon miner Atac Resources Ltd. (TSX: V.ATC, Stock Forum).

Boy said the company is focused on opportunities near its existing operations in Canada, Mexico and Europe.

“We have the ability and the experience to work through this period of volatility,’’ said Boyd.

“I’ve seen a lot of these ups and downs, and you can’t stop running your business. So you’re always looking for opportunities.’’

Agnico-Eagle shares fell 6.5% to $29.04 Wednesday, leaving the company with a market cap of $5 billion, based on 173 million shares outstanding. The 52-week range is $56.99 and $26.18.
(With files from The Canadian Press).

Tags: GOLD

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