Carlton Posted October 20, 2011 Report Share Posted October 20, 2011 AEM shares were crushed today. 46.51 -10.59 (-18.55%) Agnico-Eagle’s Goldex Mine To Suspend Production During Investigation And Remediation Of Water Inflow And Ground Stability Issue; Book Value Of Goldex To Be Written Off Stock Symbol: AEM (NYSE and TSX) (All amounts expressed in U.S. dollars unless otherwise noted) TORONTO, Oct. 19, 2011 /PRNewswire/ – Agnico-Eagle Mines Limited (“Agnico-Eagle” or the “Company”) announced today that it is suspending mining operations and gold production at its Goldex mine in Val d’Or, Quebec effective immediately. This decision follows the receipt of an opinion from a second rock mechanics consulting firm which recommended that underground mining operations be halted until the situation is investigated further. ...As a result, Agnico-Eagle will write off its investment in Goldex. It is expected that this will total approximately $260 million (or approximately $170 million after tax, or $1.00 per share) and will occur in the third quarter 2011 financial results, scheduled for release on October 26. Additionally, the Company expects to make an accounting provision for a portion of the anticipated costs of remediation in the third quarter of 2011. All of the remaining 1.6 million ounces of proven and probable gold reserves1 at Goldex (approximately 10 years of mine life), other than the ore stockpiled on surface, will be reclassified as mineral resources. http://www.dailymarkets.com/stock/2011/10/19/agnico-eagles-goldex-mine-to-suspend-production-during-investigation-and-remediation-of-water-inflow-and-ground-stability-issue-book-value-of-goldex-to-be-written-off/ Link to comment Share on other sites More sharing options...
Carlton Posted October 20, 2011 Author Report Share Posted October 20, 2011 Previously, I had thought of AEM as one of the safest miners. Good reserves, good jurisdiction, and apparently competent management. They may still deserve this description; however, this recent disappointment highlights the risk with all miners. Link to comment Share on other sites More sharing options...
Plastic Elastic Posted November 11, 2011 Report Share Posted November 11, 2011 Almost back to levels of late 2006!! Link to comment Share on other sites More sharing options...
G0ldfinger Posted November 16, 2011 Report Share Posted November 16, 2011 Have I mentioned that I bought recently? Link to comment Share on other sites More sharing options...
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