TORONTO (miningweekly.com) – Canadian gold miner Agnico-Eagle Mines on Friday said it was well prepared to survive a potential sustained period of a lower gold price, owing to its being flexible and able to adapt as conditions may warrant.

Speaking to Mining Weekly Online on Friday, Agnico-Eagle CEO Sean Boyd said a sustained lower gold price would not affect its two near-term growth projects, La India, in Mexico, and Goldex, in Ontario, Canada, as these projects were indeed nearing completion and were both reported to be ahead of schedule.

Many gold miners have, in the wake of the recent capricious decline in the gold price to under $1 321/oz scaled back expenditures, especially on exploration, while focusing on optimising operations and driving down costs.

“We are very flexible. We have cut the exploration programme for now and, other than that, do not have any significant capital expenditures at present,” he said.

He pointed to the likelihood that a development decision would only be taken by the end of 2014 with regard to the company’s next significant project, Meliadine, in Canada’s Nunavut Territory.

“A development decision on Meliadine is dependent on the gold price at that time,” he said.

When asked about the company’s growth plans beyond Meliadine, which is not expected to produce gold before 2018, Boyd pointed to the string of four seemingly insignificant strategic investments the company had made this year.

He noted the company’s current flagship operation, La Ronde, in Quebec, was the direct result of a similar strategic investment the company made in the 1970s.

Agnico-Eagle had earlier this week agreed to buy a 9.96% interest in Mexico-focused junior Kootenay Silver, through making a $4.75-million investment in a private placement. The company at the start of the month also bought a 9.96% interest in project developer Sulliden Gold and its Shahuindo project, located in a prolific gold-producing district in northern Peru, through a $24-million private placement.

Boyd also noted the company had significant internal options to add to production, such as by adding an additional autoclave and shaft at its Kitilla operation, in Finland. He added production this year was expected to increase during the second half, as its operations mine though higher grades and ramp up production.

The company aimed to achieve gold production of about 1.2-million ounces by 2015.

Agnico-Eagle on Thursday said profit for the first three months this year had floundered by 70% year-on-year as lower gold prices and production were compounded by reduced operating margins from its mines.

Agnico-Eagle said net earnings fell to $23.9-million or $0.14 a share in the quarter ended March 31, compared with net earnings of $78.5-million or $0.46 a share in the same period a year earlier. Adjusted earnings totalled $53.6-million or $0.31 a share, below analyst expectations of $0.35 a share.

Agnico-Eagle’s TSX-listed stock on Friday shed 6.30% to trade at C$31.53 apiece.