DBRS lowers Agnico-Eagle Mines view to stable

DBRS said it changed the trend on the BBB (low) issuer rating of Agnico-Eagle Mines Ltd. to stable from positive following news that the company is suspending mining operations and gold production at its Goldex mine in Quebec.

Two rock mechanics consulting firms have confirmed the rock subsidence is occurring above the northeastern limit of the deposit and advised the company to suspend operations, DBRS said.

Although progress has been made in improving the operations at its Meadowbank and Kittila mines, the sudden loss of the Goldex operation warrants caution, which lead the agency to revise the trend on the company's ratings.

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