Shin Kong Wedbush analyst says, "While there was an earnings miss and 2009 guidance was modestly reduced, the project development schedule remains on track. Our 2010 production forecast is essentially unchanged though we have increased our total cash cost estimate due to higher assumed site costs at both LaRonde and Goldex. We are upgrading our recommendation on Agnico shares to BUY from HOLD based on relative share price underperformance in little more than one week since our downgrade, and the company’s above-average leverage to gold price due to a high ratio of reserves/share."
The company's operating history includes more than 30 years of continuous gold production primarily from underground operations. Since its amalgamation in 1972, Agnico-Eagle has produced over 4.0 million ounces of gold. We are one of the lowest total cash cost producers in the North American gold mining industry.
Agnico-Eagle has traditionally sold all of its production at the spot price of gold, in keeping with a policy of not selling forward future gold production. This policy enables shareholders to participate fully in rising precious metal prices.
