Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Despite a drop in net income, from $68.9 million last Q2 to this year’s $43.4, the miner saw an increase in revenue, gold production and, as a result, a pleasant 8.5% rise in stock price.
Agnico-Eagle mines reported their net income for the first six months of 2012 was $121.8 million ($0.71 per share), an increase from 2011’s net income of $114.1 million ($0.68 per share).
The company, which has recently had problems with its Quebec-based Goldex mine being shut down due to flooding and ground instability, had an optimistic outlook about the results with Sean Boyd, CEO of Agnico-Eagle, saying:
“Operating performance during the second quarter has resulted in continued strength in our cash flows and earnings and a strengthening of our financial position. In addition to steady production from all of our mines, including record output at Meadowbank and Pinos Altos, we are pleased to announce a higher estimate for our full year production forecast.”
Agnico-Eagle has seen an increase in gold production from 239,328 in 2011 to 265,350 in 2012 and has decided to develop “satellite projects around Goldex, with production expected in 2014.”
Highlights of the company’s Wednesday release include:
Read Agnico-Eagle’s full report here >>
(Image, Sean Boyd, Agnico-Eagle CEO, Vimeo)
