Agnico Eagle posted a quarterly loss of nearly half a billion dollars for the last three months of 2013, despite breaking its own records for annual gold production.
Gold and silver prices have dipped recently, and higher royalty rates in Mexico took a big bite out of the company's earnings, resulting in a quarterly net loss of $453.3 million.
Agnico Eagle's Meadowbank mine near Baker Lake had a record year in 2013, producing 430,613 ounces of gold. Higher production levels at the mine have reduced the mine site costs per tonne, to a record low of $79 in the fourth quarter.
CEO Sean Boyd says the gold mined there is extremely high grade.
Boyd is also upbeat about the future of turning the nearby Meliadine property near Rankin Inlet into a profitable mine. The company will spend $45 million this year to explore and develop the site.
For the full year 2013, the company recorded a net loss of $406.5 million.