San Diego, Oct. 21, 2011 (Shareholders Foundation) -- Following a steep stock price drop to its 52week low an investigation on behalf of investors in shares of Agnico-Eagle Mines Limited (USA) (NYSE: AEM) over possible Violations of Federal Securities Laws was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Agnico-Eagle Mines Limited (USA) (Public, NYSE:AEM) concerning whether the company, certain of its officers and directors, or others have possibly violated federal securities laws. Specifically, the investigation concerns whether certain statements regarding Agnico-Eagle Mines Limited (USA) business, its prospects and its operations were potentially materially false and misleading at the time they were made.

Agnico-Eagle Mines Limited (USA) reported a substantial increase in its annual Revenue from $457.35million for 07 to $1.42billion for 2010 and it reported that its Net Income rose from $139.34million in 2007, respectively $73.17million in 08, to $332.12million in 2010.
However, despite an increase in its second quarter Revenue from $347.46million last year to $433.69million this year, its second quarter Net Income fell from $100.36million a year earlier to $69.27million for the second quarter 2011.

Shares of Agnico-Eagle Mines Limited (USA) (NYSE:AEM) rose from as low as $26 per share in October 2008 to as high as $85.03 per AEM shares in December 2010. However, since the NYSE AEM shares deceased to slightly above $55 per share in early August 2011, before increasing to almost $72 in early September 2011.

Then on October 19, 2011, Agnico-Eagle Mines Limited announced that it is suspending mining operations and gold production at its Goldex mine in Val d'Or, Quebec effective immediately. Agnico-Eagle Mines Limited stated that [w]hile the company continues to assess the situation, it appears that a weak volcanic rock unit in the hangingwall of the Goldex deposit has failed. Although Agnico-Eagle also stated that it was assessing the potential to restart the mining operations next year at Goldex, Agnico-Eagle Mines Limited said it will write off its investment in Goldex, approximately $260 million, in the third quarter of 2011 financial results.

NYSE: AEM stocks fell from almost $60 per share on October 14, 2011 to its 52week low of as low as $43.00 per share on October 20, 2011.