Agnico-Eagle is an international growth oriented mining company with a primary focus on gold. Agnico has operations in a number of 'safe' areas, including the USA, Canada, Mexico and Finland. Agnico-Eagle's flagship property, the LaRonde Mine, located in the Abitibi mining district of Quebec, is host to Canada's largest gold deposit, in terms of reserves.

Since 1988 LaRonde has produced more than three million ounces of gold. Even more impressive is the fact that during this time, reserves have either been maintained or increased, every year since then. This is every gold producer's dream!

To put icing on the cake, the gold that is currently being dug up at LaRonde is referred to in the trade as 'free gold'. The reason the gold is 'free' is due to the fact that along with the 250,000 ounces of gold produced in 2006, the byproduct of digging up 7 million ounces of silver and 77,000 tonnes of zinc as well as 7,500 tonnes of copper took care of mining costs!

Agnico-Eagle has paid out a dividend every year for the past 25 years - an impressive record, making this a 'Blue Ribbon, Blue Chip' company.

At LaRonde, management is continually exploring, in order to increase mine life. This policy has resulted in an extension that is adding nearly 3.8 million ounces of gold to LaRonde. The gold that was discovered in this extension grades 6 grams per tonne.

As well as gold, AEM has also identified 670,000 ounces of silver, 4,000 tonnes of copper and 8,000 tonnes of zinc.

With this reserves expansion the LaRonde mine is expected to remain profitable until 2020 or beyond! It is the characteristic of the average gold mine, to be a 'depleting asset' (as the gold runs out, the asset is depleted). LaRonde is bucking that trend!

Current gold reserves at LaRonde including recent expansion total 5.5 million ounces proven and indicated, with an additional 1 million ounces inferred.

Eleven kilometers east of LaRonde, the company owns a gold-bearing property - (Lapa). This project is under construction with production expected to commence in 2008. At present there are some 1.1 million ounces of gold at Lapa, with potential for more to the east and at depth.

60 km east of LaRonde the company owns yet another property - (Goldex). Construction is underway, benefiting from synergies with nearby LaRonde. Production is expected to commence in 2008 with average annual production of 170,000 ounces at estimated cost at 225.00/oz. Current reserves are expected to keep this mine open for 10 years.

Agnico-Eagle is an all-round profitable mining company planning for even greater success in the near future. Specifically, it uses the profits from their low-cost mine at LaRonde to pay for their exploration and acquisitions elsewhere. For example, this past April AEM acquired Cumberland Resources. Cumberland has a large high-grade gold deposit in the far north at Nunavut, located near the western shore of Hudson's Bay. Expected production at the Nunavut location is 8,500 tonnes of high-grade gold ore per day.

A gold mine is currently under construction at Kittila, Finland. Their climate is very similar to northern Quebec. Once construction is completed, AEM expects to process 150,000 ounces of gold at an average cost of $250/oz…indeed a very low-cost gold producer.

Agnico-Eagle is also active in mineral-rich Mexico, (Pinos Altos), located in the famous Sierra Madre gold belt. The property is ideal for an open pit operation in combination with underground mining. In addition to gold there is significant presence of silver at Pinos Altos.

A few days ago the company signed an option to buy an additional property in Mexico, (El Realito), which has a gold-bearing structure with a strike length of over two kilometers.

By the end of 2008 AEM expects to reach its target of owning a gold reserve of 18-20 million ounces!

AEM's long-term growth strategy includes development, exploration, partnerships and acquisitions, with a view to developing a multi-mine platform. Management has vast mining experience, and is strategically planning to take maximum of long-term bullish gold fundamentals. This prudent strategy precludes hedging forward production.

2006's profit was 161 million dollars (US). The company has an interesting 'Dividend Re-investment Program' in place. Details are available on the company website.

The latest consensus recommendation, as reported by www.globeinvestor.com has 12 brokers listing AEM as a 'buy'.

Interestingly, 176 Institutional Investors hold 56% of the outstanding stock.

The above chart formation is decidedly bullish. Price just broke out above a seven month long down-trend line (green arrow). It accomplished this while gold bullion was down over $5.00 today (07/05/07)! The strong upward move came after AEM's price put in a double bottom (blue arrows). Forecast price target for this move is $47/share (purple arrow).

Agnico-Eagle shares trade on the NYSE and TSX under the symbol AEM. In Frankfurt the trading symbol is AE9 (WKN-860325). On the TSX warrants trade under AEM.WT.U, while on the NASDAQ under AEMLW.

More information is available on the company website: www.agnico-eagle.com Investor contact: Hazel Winchester 416-947-1212 or 888-822-6714 Email: info@agnico-eagle.com

Summary

If it's winning gold company you're after, Agnico-Eagle is for you. This is a company making 'all the right moves', and belongs in the portfolio of every discriminating long-term gold investor. Incidentally, the most recent Commitment of Commercial Gold Traders was very bullish! Consistent with AEM's optimistic projection is the fact the HUI index of unhedged mining stocks remains in a multi-year secular bull market trend.

 

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