Agnico-Eagle Reports Record Gold Production

TORONTO, ON - Agnico-Eagle Mines Limited reported quarterly net income of $21.9 million. "Compared to the fourth quarter last year, gold production increased 48% as LaRonde continued its steady performance and the new Goldex mine achieved its design capacity in December", said Sean Boyd, Vice-Chairman and Chief Executive Officer. "In addition, with our gold reserves at record levels we are well positioned to continue to increase gold output with 2009 production expected to rise more than 100% from the 2008 level," added Boyd.
The companyÕs record gold production of 89,360 ounces in the fourth quarter contributed to record annual gold production of 276,762 ounces.
Gold reserves rise 8%, or 1.4 million ounces net of production, to 18.1 million ounces, gold resources rise to record level, even after conversion of 1.7 million ounces to reserves in 2008.
Goldex achieves design capacity. Kittila in Finlands is in the commissioning phase and pouring gold. Lapa, in Canada and Pinos Altos are on track for 2009 openings.
Payable gold production for the full year 2008 was a record 276,762 ounces at total cash costs per ounce of $162. These costs place Agnico-Eagle's gold production in the lowest quartile of costs in the industry. This production compares to the full year 2007 level of 230,992 ounces at total cash costs per ounce of minus $365. The higher gold production in 2008 was largely due to the start-up of the new Goldex mine, which declared commercial production in August. The higher costs were largely due to the significantly lower prices, and lower production of zinc and copper during 2008.
At year-end 2008, the Company's gold reserves totaled 18.1 million ounces, an increase of 8% over 2007 levels. The largest increase came from the Pinos Altos property, in Mexico, where approximately one million ounces of reserves were added in 2008. Also, the LaRonde mine replaced its produced ounces, effectively adding a year to its mine life.
In 2009, it is expected that Agnico-Eagle's overall reserves figure will continue to grow as the Company continues to convert its resource to reserves and continues the exploration of its properties outside of current resource envelopes. Agnico-Eagle's goal is to increase gold reserves, from the existing portfolio of mines and projects, reaching 19 million to 20 million ounces by year-end 2009. Agnico-Eagle is also presenting a target for year-end 2010 gold reserves of between 20 million and 21 million ounces of gold.
The company's address is 145 King Street East, Suite 400, Toronto, ON M5C 2Y7, 416-947-1212, fax: 416-367-4681.