Agnico Eagle plans to raise its capital expenditures 5.8% in 2021

Agnico Eagle Mines Limited reported that it plans to increase its capital expenditures 5.8% in 2021, to $ 803 million.

Headquartered in Toronto, Canada, the company is primarily engaged in the production and sale of gold, as well as related activities such as mining exploration and development.

Agnico Eagle’s mining operations are located in Canada, Mexico and Finland and the company has exploration activities in Canada, Europe, Latin America and the United States.

Capital expenditures refer to funds that a business uses for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the business.

Meanwhile, long-term assets are usually physical, fixed and non-consumable assets such as property, equipment or infrastructure, and that have a useful life of more than one accounting period.

Compared to 2019, Agnico Eagle’s capital expenditures decreased 14 percent.

Also known as Capex, capital expenditures include the purchase of items such as new equipment, machinery, land, plants, buildings or warehouses, furniture and accessories, commercial vehicles, software, or intangible assets such as a patent or license.

Agnico Eagle

The company is a high-end gold mining company that has produced precious metals since 1957. Its operating mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries, as well as in the United States. States, Sweden and Colombia.

As of December 31, 2020, the Company had 11,421 employees comprised of 6,210 permanent employees, 4,872 contractors, 272 temporary employees, and 67 students (including 100% of the Alliance employees).

On March 24, 2020, Agnico Eagle announced that, in response to an order from the Government of Quebec issued on March 23, 2020 to close all non-essential businesses, the company would take steps to reduce its operations in the Abitibi region of Quebec (the LaRonde complex, the Goldex mine and the Canadian Malartic mine (50 percent).

The Order of Quebec was part of the Quebec government’s response to the Covid-19 pandemic.

Additionally, Agnico Eagle reduced activities at the Meliadine and Meadowbank mining operations in Nunavut, which are fly-in / fly-out mining operations, serviced from Mirabel and Val d’Or, Quebec.

At the same time, exploration activities in Canada were suspended during this period.

On April 2, 2020, as a result of a decree of the Government of Mexico whereby all non-essential businesses suspend their operations until April 30, 2020, the company suspended mining operations at the Pinos Altos mine, the Creston mine Mascota and the Company’s La India mine.

As a result, in the second quarter of 2020, operations at seven of the eight Agnico Eagle mines were suspended or reduced.