Agnico Eagle 'Will Be A Top Five Mine,' CEO Predicts As Detour Lake Plans Are Unveiled
Portfolio Pulse from Stjepan Kalinic
Agnico Eagle Mines (NYSE:AEM) has unveiled a new plan to increase gold production at its Detour Lake mine in Ontario. The company aims to boost production to an average of one million ounces per year over a 14-year period starting in 2030. The plan includes developing an underground mine to complement the existing open-pit operations, with a preliminary economic assessment (PEA) proposing an underground mining rate of 11,200 tons per day and a mill expansion to 29 million tons per year by 2028. Agnico Eagle has committed $100 million over the next three years to de-risk the underground project.
June 20, 2024 | 2:15 pm
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Agnico Eagle Mines (NYSE:AEM) has announced a plan to increase gold production at Detour Lake to one million ounces per year starting in 2030. The plan includes developing an underground mine and expanding the mill, with a $100 million investment over the next three years to de-risk the project.
The announcement of a significant increase in gold production and the development of an underground mine at Detour Lake is likely to positively impact Agnico Eagle Mines' stock in the short term. The commitment of $100 million to de-risk the project and the projected after-tax IRR of 25% at a gold price of $1,900 per ounce further support a positive outlook.
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