Agnico-Eagle (NYSE:AEM) Expecting Blowout Year

Even though Agnico-Eagle (NYSE:AEM) has been going through a period of growing pains for several years, they were a great growth story in 2010, and promise to be an even better one in 2011.

Taking into consideration Agnico had higher costs at its Meadowbank and Kittila mines, as well as finding lower grades at a couple of other mines in the fourth quarter, they continue to be efficient, as they still produced gold at $485 an ounce in the quarter, still among the lowest in the industry.

Consequently, the gold miner also dropped in production by 1.2 percent below its 2010 estimates.

Nonetheless, Agnico says they see 2011 being much stronger, projection gold production to reach 1.2 million ounces for the year.

CEO Sean Boyd said, "The growth plan that transformed the Company over the past several years has resulted in record gold reserves and record annual financial and operating results."

After a strong 2010 and more expected in 2010, investors and shareholders are wondering if the company will boost its current 16 cent dividend even more.

For the last quarter, Agnico generated earnings of $88 million, or 53 cents a share, a gain of 71 percent over the same quarter last year.

Agnico closed Thursday at $72.79, dropping $3.67, or 4.80 percent.