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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Aloysius Q. Finnegan who wrote (61736)	10/18/2008 7:15:48 AM
From: E. Charters	1 Recommendation Read Replies (1) \| Respond to of 78412

Happy, happy, joy, joy. Agnico Expects Share Declines, Bankruptcy for Mineral Explorers By Stewart Bailey Oct. 17 -- Agnico-Eagle Mines Ltd., the Canadian gold producer planning to increase output fivefold, said smaller mining and exploration companies may go bankrupt as their cash dwindles and the credit freeze makes borrowing more difficult. There is another "leg down" for shares of so-called junior miners, which rely on external financing to develop their first projects or to fund the search for new metal deposits, Agnico Chief Financial Officer David Garofalo said yesterday in a telephone interview. Agnico will wait for those stocks to drop before making any acquisitions, he said. "We haven't seen the bankruptcies in the junior market, but those are inevitable," Garofalo said from the company's headquarters in Toronto. "There's no need to rush after opportunities, because the valuations will come down again." Mineral-exploration and development stocks have dropped this year as credit markets seized up and metal prices cratered on expectations that a global recession would hurt demand. The shares also have been hurt by the forced sale of investments by hedge and mutual funds required to return clients' cash amid a wave of redemptions. Agnico fell C$5.24, or 11 percent, to C$41.92 yesterday in Toronto Stock Exchange trading, taking its decline this year to 23 percent and paring its market value to C$6.03 billion ($5.1 billion). Others have fared worse. Osisko Mining Corp., planning to develop its first gold mine in Canada, declined 63 percent, Detour Gold Corp. is 59 percent lower and Orezone Resources Inc. has plunged 85 percent. *****************************************