Agnico Eagle Mines Limited ( AEM Quick Quote AEM - Free Report) recently announced an update linked to the hike in COVID-19 cases at its Nunavut operations. There have been a total of 13 tentative cases at its Meliadine, Meadowbank and Hope Bay operations since Dec 18, 2021. The company, along with Nunavut public health authorities, made a decision to immediately send home the Nunavut-based workforce (Nunavummiut) from the Meliadine, Meadowbank and Hope Bay operations as well as its Nunavut exploration projects.
Agnico Eagle gradually reduced the remaining workforce and activity levels at Nunavut. Due to the reduction, the company expects production to be minimal over this period. It is also reassessing current protocols in preparation for a resumption of activities expected in early 2022.
The health and safety measures set by the company since the start of the pandemic have remained in place at its Nunavut operations. It is undertaking precautionary steps to further protect the continued health of its Nunavut workforce and local residents in the communities in which it operates due to the increased spread and transmissibility of the Omicron variant of COVID-19.
All Nunavummiut workers, presently on site, will be sent home and those that are currently off-site will not return to work at this time for a period of at least three weeks. These employees will continue to receive their remuneration during this period.
The company will discuss the implementation of similar measures for its Nunavummiut workforce with its Nunavut contractors. It has also increased testing protocols at all its Nunavut operations for remaining workers.
Shares of Agnico Eagle have declined 25.4% in the past year compared with a 13.3% fall of the
industry. Image Source: Zacks Investment Research
The company, in its last earnings call, stated that it expects gold production for 2021 to be 2,047,500 ounces. It also projects total cash costs per ounce of $700-$750 and AISC of $950-$1,000 per ounce for 2021.
The forecast for 2021 capital expenditures is roughly $803 million.
Zacks Rank & Key Picks
Agnico Eagle currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are
Nutrien Ltd. ( NTR Quick Quote NTR - Free Report) , The Chemours Company ( CC Quick Quote CC - Free Report) and AdvanSix Inc. ( ASIX Quick Quote ASIX - Free Report) .
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