Boston, MA 10/25/2013 (wallstreetpr) – Agnico Eagle Mines Ltd (USA) (NYSE:AEM), is a Canada-based leading global gold producer , with mining operations in northern Mexico, north-western Quebec, Nunavut, and northern Finland, and it carries on exploration work in Canada, Latin America, the United States, and Europe.
With the help of a high jump taken by Agnico Eagle mines of 13%, Canada’s main index opened on the higher side.
There was a decline in the profit of the company in 3Q. The decline in profit was mainly due to declining in the prices of realized metal and also due to maintenance shut-down. However on the production front, the company surprised the street with reporting higher production than the street estimates. Owing to the weak realisation, maintenance shut-down, and increase in cost of production, net income of the company declined substantially to $47.3 million as compared to $106.3mn. However, this excludes non-cash and non-recurring expenses.
Owing to higher than estimated production, the company declared its production guidance, and it expects it to grow its production to 1,060,000 ounces of gold.
The company chartered out a plan pertaining to the development of the mines, by investing in a company called Probe Mines Limited. The media report suggests that, the company has entered into a deal with Probe Mines Ltd and Cormark Securities Inc. It further states that, Agnico will be purchasing 7,500,000 units of Probe from Cormark at a price of $1.50 per unit as on the closure of the deal. The company will be holding 7,500,000 of common shares and 5,625,000 warrants which amounts to 9.94% of of issued and outstanding shares .
The company declares that it will invest in Sulliden Gold Corporation Ltd through non-brokered private placement which will amount to $0.89 per unit and the total consideration of the deal will be $24,000,000. Post the completion of the deal, the company will be holding 26,966,292 of common shares and 18,876,404 of warrants.