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Friday, April 30, 2010

Agnico-Eagle (NYSE:AEM) Positioned for Strong Growt

Agnico-Eagle (NYSE:AEM) CEO Sean Boyd said recently the company has opened up five new mines and are positioned for strong growth going forward.

Because of the extra costs in opening the mines, earnings will be about level with what the street estimates are, although that should change soon once gold production ramps up.

For the entire year, Boyd projects production will reach close to 1 million ounces, almost twice what they produced in 2009.

Boyd added they are taking measures to cut costs, and together with increased production should provide value to their shareholders. Costs will also naturally drop now that the mines are online, which will grow earnings.

The overall goal is to eventually elimate the need to borrow to grow, and to grow from cash flow, again, decreasing the cost of doing business for Agnico-Eagle.

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