Blogs & Comment

Agnico tacks on $600 million to its credit limit

Agnico-Eagle Mines Ltd. (TSX: AEM) yesterday announced it has a new US$600 million revolving credit limit, bringing its total credit line to US$900 million. The Toronto-based gold miner didnt say what specifically the extra financing would be used for, but did offer a broad sense of where it would apply the money: The new facility provides Agnico-Eagle with additional financing for internal expansion opportunities, as well as financing flexibility to deal with potential investment opportunities and other corporate priorities, said Sean Boyd, Agnico vice-chairman and chief executive in a statement. Even though its not clear what those investment opportunities might be, a few weeks ago, Agnico hinted there wouldnt be any massive acquisitions. During an analyst presentation at the end May, Agnico noted that the priorities included in its corporate strategy were to acquire small, think big, and to be a low-cost leader. It also noted that its Q1/09 total cash costs were among the lowest of its peer group at $312/oz, compared to a weighted average of $445/oz, in a group that included Goldcorp, Yamana, Barrick and Newmont. As of March 31, Agnicos cash and cash equivalents totaled $208.4 million, while it had long-term debt of $415.0 million. Agnicos Q2/09 results are expected to be released at the end of July.