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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (1038)	11/21/2003 8:14:48 AM
From: Andrew	Read Replies (1) \| Respond to of 48092

Agnico-Eagle Mines Ltd (C-AGE) - News Release Agnico-Eagle releases 2004 production estimates Agnico-Eagle Mines Ltd AGE Shares issued 84,391,716 Nov 19 2003 close $ 14.55 Thursday November 20 2003 News Release Mr. Barry Landen reports AGNICO-EAGLE PROVIDES 2004 PRODUCTION ESTIMATES Agnico-Eagle Mines is today hosting research analysts and investors on a tour of the LaRonde mine site. All amounts are expressed in United States dollars unless otherwise noted. The visit will focus on operations and will include an underground and mill tour. A regional exploration and development update will also be provided regarding the company's projects and programs on the Cadillac-Bousquet belt. The company has completed its mine planning process for 2004. As previously disclosed, the new mine plan was devised with an annual gold production target of 300,000 ounces. A summary of the estimated metal production and cash operating costs together with the material assumptions used in the company's estimates for 2004 follows: Ore processed (000s tons) 2,555 Daily throughput rate (tons) 7,000 Grades Gold (ounce per ton) 0.13 Silver (ounce per ton) 2.50 Zinc (%) 3.40 Copper (%) 0.60 Payable metal production Gold (ounces) 300,000 Silver (000s ounces) 4,700 Zinc (000s pounds) 120,000 Copper (000s pounds) 24,000 Mine site operating costs ($ Canadian/ton) 49-51 Total cash operating costs ($/ounce) 155-165 Assumptions Gold ($/ounce) 340 Silver ($/ounce) 5.00 Zinc ($/pound) 0.40 Copper ($/pound) 0.85 $ Canadian/$ U.S. exchange rate 1.30 The company undertook a comprehensive review of short-term and long-term production targets. Based on recent experience, a more conservative approach to reduce mining risk was taken, which is still expected to result in strong cash flows and low cash operating costs. LaRonde's total cash operating costs are expected to decline significantly in 2004 to a range of $155 to $165 per ounce, based on the assumptions and estimates above. The decline in total cash operating unit costs from those estimated for 2003 is attributable to the elimination of the El Coco royalty (over $50 per ounce in 2003), and higher gold and byproduct metal production as ore throughput increases to a steady state of 7,000 tons per day. The estimated sensitivity of LaRonde's 2004 total cash operating costs to changes in metal prices and exchange rates follows: Impact on total cash Change in variable operating costs ($/ounce) $0.10 in $ Canadian/$ U.S. 25 $0.50/ounce in silver 10 $0.05/pound in zinc 14 $0.10/pound in copper 4 LaRonde on track for fourth quarter 2003 production of 70,000 to 75,000 ounces The proportion of ore from the lower level mining horizons continued to increase in October to over 70 per cent from 63 per cent in the third quarter. Gold production was slightly above 24,000 ounces in October with cash operating costs within the previously announced range of $210 to $230 per ounce and total cash operating costs of $240 to $260 per ounce, including the El Coco royalty. October's gold production was in line with expectations and the company expects to achieve its previously disclosed target of 70,000 to 75,000 ounces in the fourth quarter. Regional program plans to be announced in December The company intends to provide an update on its 2004 program for its pipeline of regional projects, including LaRonde II, Lapa and Goldex, in a separate press release in December. At that time, the cash dividend for 2004 is also expected to be set. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2003 Canjex Publishing Ltd. stockwatch.com