Agnico Eagle Mines (TSX:AEM)(NYSE:AEM) is a diversified Canadian mining company. Adding to Agnico Eagle’s growth story is the company’s recent acquisition of TMAC Resources and the enormous potential of the company’s Hope Bay property in Nunavut, which is expected to become the company’s fourth-largest asset by mineral resources.
Work appears to be now underway to assess and optimize current production from the company’s Doris deposit, as well as to further explore the property and evaluate the company’s Madrid and Boston deposits for future production.
Gold outlook for 2021
Gold performed exceptionally well in 2020 and while COVID-19 was not the sole cause, it certainly appears to have played a significant role. Economists suggest that the outlook for 2021 is for a positive, though more subdued performance, with gold prices remaining strong and increased investor interest in the sector, along with continued industry consolidation.
Response to COVID-19
In Canada, Agnico Eagle worked with world-renowned infectious disease specialist Dr. Gary Kobinger to launch a mobile same-day testing lab to test the company’s workforce for COVID-19, particularly in Nunavut. Agnico Eagle took the added precaution of sending the company’s entire Nunavut-based workforce home with compensation in order to protect employees and reduce the risk of the virus spreading in remote Kivalliq communities.
Multiple testing facilities
Furthermore, Agnico Eagle now has five testing facilities in place to support the company’s Canadian operations. Agnico Eagle also funded a testing facility in Finland, which is available to the company’s Kittila employees, as well as to all residents of the Kittila municipality. In Mexico, Agnico Eagle conducted a rapid test for all employees prior to travelling to the mine site, with over 27,550 tests performed in 2020.
Robust business strategy
So far, in 2021, Agnico Eagle has continued to execute on the company’s strategy to grow the business and maximize the company’s full potential. Agnico Eagle has indicated that the company expects to generate strong net free cash flow and to increase production by nearly 300,000 ounces, allowing it to produce over 2 million ounces of gold for the first time ever.
Creating value for shareholders
Further, Agnico Eagle has increased the company’s exploration budget by over 40%, and it plans to advance the company’s pipeline of growth projects, including Amaruq, Odyssey, and Hope Bay. Ultimately, Agnico Eagle appears set to continue to focus on the company’s priorities.
These priorities include what matters most to Agnico Eagle’s business such as building trust with the company’s stakeholders, creating value for the company’s shareholders, and contributing to the well-being of the communities in which it operates.
Recently, Agnico Eagle launched an internal development program for women within the company. Although Agnico Eagle operates in a tough business, it entered 2021 with the company’s business stronger than ever.
More importantly, Agnico Eagle’s executive management has managed to keep the company’s remarkable culture intact, with the knowledge that the company’s stakeholders trust it to do the right thing.
Hence, the future of Agnico Eagle has never looked brighter. Long-term shareholders are likely to benefit from higher inflation that could result in higher gold prices.