Agnico Eagle

Agnico-Eagle in class-action crosshairs for $250m

London, Ontario-based Siskinds LLP has filed a proposed class action suit against TSX-listed Agnico-Eagle Mines seeking $250-million, alleging the company and certain senior officers failed to disclose information that led to the closure of its Goldex mine in Quebec.

Rock failure halts production at Goldex mine; Agnico-Eagle shares plummet

Agnico-Eagle Mines (TSE:AEM) had suspended mining and gold production at its Goldex mine in Val d'Or, Quebec, due to unstable ground and water inflow.

"A weak volcanic rock unit in the hanging wall of the Goldex deposit has failed. This rock failure is thought to extend between the top of the deposit and surface. As a result, this structure has allowed ground water to flow into the mine. This water flow has likely contributed to further weakening and movement of the rock mass," Agnico-Eagle said in a statement.

As a result of the problem, Agnico said it will write off its investment in Goldex, resulting in a $260 million charge in the third quarter results.

The news caused the Toronto-based company's shares to plummet around 19% near the close of trading on Wednesday.

Agnico-Eagle reports gold production up despite Meadowbank fire loss

Agnico-Eagle reported gold production increased from 188,232 ounces to 252,363 ounces for the first quarter this year, despite the March fire that burned down the kitchen at the Meadowbank mine last month.

The uncertainty of crowds

With Libyans having joined the movement to overturn aging autocracies the Arab street action has moved into a geopolitically more difficult territory. Concern over Libya’s oil exports are showing up as higher crude pricing. Libya’s 1.6 M barrels/day of crude output may well undergo disruptions, but the Saudis could replace that if prices move high enough to cause concern. As troubling is the unpredictability of Muammar Gaddafi and those around him. They seem more likely to go down fighting than the western leaning autocrats have been, and that is more likely to cause splintering of the country and concern similar shifts elsewhere in the region. Markets are reflecting this heightened uncertainty with continued gains for precious metals and US$ as well as oil. We expect the US$ and oil to peak before gold and its cousins do.