DBRS upgrades Agnico Eagle Mines

DBRS said it upgraded the issuer and senior unsecured notes ratings of Agnico Eagle Mines Ltd. to BBB from BBB (low) and changed the trends to stable from positive. The upgrades are based on the company bringing two new mines into commercial production in 2019 in Nunavut, Meliadine and Amaruq, which underpin Agnico’s robust production growth profile over the next three years.

The stable trends reflect DBRS’expectation the company’s financial risk profile will continue to improve, driven by both the higher production as well as higher expected gold prices, $1,515 per ounce, and $1,596 per ounce in 2020, 2021, and 2022, respectively, compared to $1,406 per ounce and $1,266 per ounce, respectively, in 2019 and 2018.

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